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HomeMy WebLinkAboutR-1995-065 Memorandum of Understanding• • t A RESOLUTION RESOLUTION NO. R-95 6 5 authorizing the City Manager and City Clerk of the City of Yakima to execute a Memorandum of Understanding and Intent Between the City, the County and the Airport and authorizing the City Manager and the City Finance Director to perform such actions as are necessary to fulfill the commitments undertaken by the City in the Memorandum of Understanding and Intent. WHEREAS, the City of Yakima and Yakima County jointly own the Yakima Air Terminal and intend to assist the Yakima Air Terminal and the Yakima Air Terminal Board (referred to collectively below as the "Airport") meet certain needs in order that, in due course, the Airport shall become generally fiscally self-sufficient; and WHEREAS, the Airport has requested City and County assistance in several different matters, and WHEREAS, the City believes it is in the best interests of the City and the County and the Airport that the assistance described the attached Memorandum of Understanding and Intent be provided to the Airport; and WHEREAS, the City Manager and Finance Director can prudently and efficiently perform such actions as are necessary to fulfill the commitments undertaken by the City in the attached Memorandum of Understanding and Intent; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA. The City Manager and City Clerk are hereby authorized and directed to execute the attached Memorandum of Understanding and Intent Between the City of Yakima, Yakima County and the Yakima Air Terminal Board, and the City Manager and the City Finance Director are authorized to perform such actions as are necessary to fulfill the commitments undertaken by the City in the Memorandum of Understanding and Intent. ADOPTED BY THE CITY COUNCIL this asday of 5�� �� , 1995 Mayor ATTEST Acct—„v i ..� City Clerk lap/airport:/memo/underst2.res 4/21/95 1.26 PM MEMORANDUM OF UNDERSTANDING AND INTENT BETWEEN THE CITY OF YAKIMA YAKIMA COUNTY THE YAKIMA AIR TERMINAL BOARD WHEREAS, the City of Yakima (referred to below as the "City") and Yakima County (referred to below as the "County") jointly own the Yakima Air Terminal and intend to assist the Yakima Air Terminal and the Yakima Air Terminal Board (referred to collectively below as the "Airport") meet certain needs in order that, in due course, the Airport shall become generally fiscally self-sufficient; and WHEREAS, the Airport has requested City and County assistance in several different matters; and WHEREAS, the City and the County believe it is in the best interests of the City and the County and the Airport that the assistance described below be provided to the Airport, NOW, THEREFORE, the City and the County and the Airport agree to and commit themselves to the following as their agreed mutual understanding and intentions: I. AIRPORT PROPERTY AND BOILER AND MACHINERY INSURANCE The Airport's current Property and Boiler and Machinery insurance policy expires on May 1, 1995. Because the City is an owner of the Airport, Airport property, boilers and machinery can be included in existing City insurance coverage. Furthermore, substantial savings can be achieved by so including the pertinent Airport property. The City and County are willing, on a 50/50 basis, to assist the Airport by sharing both: 1) the cost of adding Airport Property and Boiler and Machinery insurance coverage to the City's policy for the period May 1, 1995 to April 30, 1996, and 2) the costs of any deductible payable as a result of Airport losses under this coverage. This assistance shall be renewable up to two additional years, after annual review. The City shall fund the cost of premiums and any deductible from the City's Insurance Risk Management Fund. Payments from the County to the City for its share of premiums and any deductible shall be paid into the City's Insurance Risk Management Fund. All parties intend that, as soon as feasible, the Airport shall fund the cost of Airport Property and Boiler and Machinery insurance coverage from Airport revenues, although this coverage may be included in the policy for the City or County. The City and the County and the Airport shall revisit the issue of Airport Property and Boiler and Machinery insurance coverage before the end of the three year period which begins May 1, 1995. II. LEGAL SERVICES FOR THE AIRPORT The Airport involves a wide variety of activities and consequently requires substantial legal services. For the balance of 1995, the City and County are willing to assist the Airport meet it's need for legal services by making City and County staff attorneys available to the Airport, insofar as City and County staff attorneys are able to accommodate Airport legal services needs into their regular City and County lap/airport:memo/underst2 4/21/95 4:57 PM CITY/COUNTY/AIRPORT • MEMORANDUM OF UNDERSTANDING -- Page 1 workloads. In consideration of this assistance, the Airport intends to fully fund the cost of it's legal services needs in 1996 and subsequent years. III. AIRPORT RUNWAY 9/27 REHABILITATION LOAN Substantial federal funding assistance may become available for Airport runway 9/27 rehabilitation. Such funding would require local match funding of $200,000 - $300,000, depending on project costs as they would be determined by contractors' bids to perform the necessary work. The Airport requests that the City and County assist the Airport by assuring the Airport of a loan of such funds as may be required for the local match, in the event federal assistance becomes established. Within several months, the Airport will begin collecting Passenger Facilities Charges which, possibly in combination with other revenues, will enable the Airport to repay any loan at a rate of at least $10,000 per month. The City and County, on a 50/50 shared basis, are willing to assure the Airport of a loan of up to $300,000, to be repaid at the rate of at least $10,000 per month for principal and interest, with interest calculated at the market rate on the date of any loan based on the current portfolio of the entity which actually funds the loan, and without penalty for early repayment. DATED this32CtUclay of , 1995. ATTEST: City Clerk ,!O 5-4 DATED this 4 day of , 1995. CITY OF YAKIMA By: • • • • • Des Zais City Manager By: YAKIMA AIR TERMINAL BOARD hwti ••••• lap/airport:memo/underst2 4/21/95 4:57 PM CITY/COUNTY/AIRPORT MEMORANDUM OF UNDERSTANDING -- Page 2 ennis Byam Chairman DATED thi2 day of , 1995. COMMISSIONERS BEI'I IE ING Chair ATTEST: Clerk of the Board W H. FLOWER Commissioner APPROVED: Deputy Prosecuting Attorney • • • • • lap/airport:memo/underst2 4/21/95 4:57 PM CITY/COUNTY/AIRPORT MEMORANDUM OF UNDERSTANDING -- Page 3 BOARD OF YAKIMA COUNTY COMMISSIONERS IN THE MAI TBR OF APPROVING LOAN TO THE YAXIMA INTERNATIONAL AIRPORT FOR REHABILITATE RUNWAY 9/27 RESOLUTION NO. 441-1995 WHEREAS, the City of Yakima and Yakima County jointly own the Yakima Air Terminal and intend to assist the Yakima Air Terminal and the Yakima Air Terminal Board meet certain needs in order that , in due course the Airport shall become generally fiscally self-sufficient; and, WHEREAS, substantial federal funding assistance may become available for Airport Runway 9/27 Rehabilitation and such funding would require local match funding; and, WHEREAS, the Airport requests that the City and County assist the Airport by assuring the Airport a loan in the amount of $80,000.00 each; and, WHEREAS, the City and County on May 2, 1995, jointly approved a Memorandum of Understanding and Intent between the City of Yakima, Yakima County and the Yakima Air Terminal Board to approve such as request ; and, WHEREAS, the Board feels it in the best interests that said funds should come from the General Fund in the form of a loan, inclusive of principal and interest as described in Exhibit A, attached hereto and incorporated; now, therefore, BE IT HEREBY RESOLVED by the Board of Yakima County Commissioners that a loan in the amount of $80,000.00 shall be granted to the Yakima Air Terminal Board to be repaid in monthly payments of at least $5,000.00, interest to be calculated by the Yakima County Treasurer at 6% per annuum on the unpaid balance as per Exhibit A, attached hereto and incorporated in this resolution. That said loan shall come from the General Fund as recommended by the Yakima County Auditor's Office. BE IT FURTHER RESOLVED that theYakima County Auditor's Office and Yakima County Treasurer's Office shall implement this resolution effective immediately. Done this 29th day of August 1995. A est: .ylviaE i 'nodosa of the Board William H. Flower, Commissioner Constitutes the Board of County Commissioners for Yakima County, Washington Amortization Table LOAN DATA Loan amount: Annual interest rate: Term in years: Payments per year: First payment due: PERIODIC PAYMENT $80,000.00 6.00% 1.333333333 (16/12) 12 10/1/95 Loan to Yakima Airport Board TABLE DATA Table starts at date: or at payment number: 1 Entered payment: Calculated payment: CALCULATIONS $5,000.00 The table uses the calculated periodic payment amount $5,215.15 unless you enter a value for "Entered payment". Use payment of: $5,000.00 1st payment in table: 1 Table Beginning balance at payment 1: Cumulative interest prior to payment 1: 80, 000.00 0.00 No. Payment Date Beginning Balance Interest Principal Ending Balance Cumulative Interest 1 10/1/95 80,000.00 400.00 4,600.00 75,400.00 400.00 2 11/1/95 75,400.00 377.00 4,623.00 70,777.00 777.00 3 12/1/95 70,777.00 353.89 4,646.12 66,130.89 1,130.89 4 1/1/96 66,130.89 330.65 4,669.35 61,461.54 1,461.54 5 2/1/96 61,461.54 307.31 4,692.69 56,768.85 1,768.85 6 3/1/96 56,768.85 283.84 4,716.16 52,052.69 2,052.69 7 4/1/96 52,052.69 260.26 4,739.74 47,312.95 2,312.95 8 5/1/96 47,312.95 236.56 4,763.44 42,549.52 2,549.52 9 6/1/96 42,549.52 212.75 4,787.25 37,762.27 2,762.27 10 7/1/96 37,762.27 188.81 4,811.19 32,951.08 2,951.08 11 8/1/96 32,951.08 164.76 4,835.24 28,115.83 3,115.83 12 9/1/96 28,115.83 140.58 4,859.42 23,256.41 3,256.41 13 10/1/96 23,256.41 116.28 4,883.72 18,372.70 3,372.70 14 11/1/96 18,372.70 91.86 4,908.14 13,464.56 3,464.56 15 12/1/96 13,464.56 67.32 4,932.68 8,531.88 3,531.88 16 1/1/97 8,531.88 42.66 4,957.34 3,574.54 3,574.54 C:I1XLFILESIAMORTIZEIAIRPORT.XLS