HomeMy WebLinkAboutR-1995-112 Central Heating & Plumbing, Inc.’s•
•
•
A RESOLUTION
RESOLUTION NO. R-95- 112
authorizing and directing the City Manger to execute, on be-
half of the City of Yakima, the City's acceptance of an Initial
Offer ofa loan from the Washington State Community Econo-
mic Revitalization Board to partially finance the cost of con-
structing or improving public infrastructure in the vicinity
of Central Heating & Plumbing, Inc.'s new facility; and
further authorizing and directing the City Manger and the
City Clerk to execute, on behalf of the City, a Final Contract
between the Community Economic Revitalization Board and
the City, and further designating and authorizing the City
Manager to act as the official representative of the City to take
such additional steps as may be necessary and prudent to
establish this financial assistance.
WHEREAS, economic development is a priority of the City of Yakima, and
the City intends to approach economic development on an inclusive, comprehen-
sive basis which involves public, private and community-based efforts to achieve
new investment and redevelopment in the City, and
WHEREAS, Central Heating & Plumbing, Inc has committed itself to a
private/ public partnership and has undertaken development of a new, 20,000
square foot light industrial facility in the vicinity of Elks Park, within the State
designated Community Empowerment Zone, and
WHEREAS, the new Central Heating & Plumbing, Inc. facility represents
significant reinvestment and redevelopment in Yakima, and promises substantial
opportunities, economic diversification, and job creation which will benefit the
local economy, and
WHEREAS, the new facility necessitates improvements to public infrastruc-
ture, namely construction or improvement of sewer and water lines, streets,
curbs, gutters, sidewalks, andstreetlights in the vicinity of the new facility, and
WHEREAS, the Washington State Community Economic Revitalization Board
(CERB) administers a program of financial assistance to foster economic diversifi-
cation and job creation in economically distressed areas of the state; and has of-
fered the City a loan of $463,189 at an interest rate of 5 5% per annum to be paid
over a period 20 years to aid in financing the cost of public infrastructure re-
quired by the new Central Heating & Plumbing, Inc. facility; and
WHEREAS, it is in the best interests of the City of Yakima that improvements
to public infrastructure in the vicinity of the new Central Heating & Plumbing,
Inc. facility be constructed expeditiously and that the City accept the CERB offer of
financial aid and proceed promptly to execution of a final contract, now,
therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA.
Section 1 The City of Yakima accepts the offer of a loan from the Washington
State Community Economic Revitalization Board ("CERB") in the amount of
$463,189 at an interest rate of 5 5% per annum to be paid over a period 20 years.
The City Manager is authorized and directed to execute, on behalf of the City as
lap\comm&econ devei/cerb loan offer accept ance res 8/8/95 1.35 PM
RESOLUTION ACCEPTING OFFER OF CERB LOAN -- Page 1
"Contractor", acceptance ,of the CERB's Initial Offer of Financial Aid, dated July 20,
1995, a copy of which is attached to this resolution, designated Exhibit A, and is
incorporated in this resolution by reference.
Section 2. The City Manager and City Clerk are hereby further authorized and di-
rected to execute, on behalf of the City, a Final Contract between CERB and the
City The Final Contract shall consist of the following documents, which are
attached to this resolution, designated as indicated, and incorporated in this
resolution by reference:
1 Signed Certification Page of Application Form (Attached as Exhibit B)
2. Initial Offer of Financial Aid (Attached (unsigned) as Exhibit A).
3 General And Special Conditions (Attached as Exhibit C)
4 This Resolution accepting CERB's offer
5 Attorney's Certificate (Attached (unsigned) as Exhibit D)
Section 3 Repayment of this general obligation loan shall be in accordance with
the provisions of Article 8 of the General and Special Conditions to the Final
Contract. This obligation shall be considered as a legal general obligation of the
City and the City hereby pledges its full faith and credit to the payment thereof
The City reserves the right to accelerate payments on principal and eliminate the
interest on any accelerated principal payments.
Section 4 All financial activity related to this CERB loan shall be accounted in a
separate set of CERB accounts within the existing Economic Development Fund.
Future CERB grants or loans, if any, shall be similarly accounted in separate sets
of accounts within the Economic Development Fund. CERB accounts within the
Economic Development Fund shall be sufficiently funded to meet established loan
repayment schedules. The source of payment is the City of Yakima General Fund.
Section 5 The City Manager is designated as the official representative of the City
for this CERB financial aid and is authorized to take such additional steps as may
be necessary and prudent to secure Community Economic Revitalization Board aid
in financing the cost of construction or improvement of sewer and water lines,
streets, curbs, gutters, sidewalks, and streetlights in the vicinity of the new
Central Heating & Plumbing, Inc. facility
ADOPTED BY THE CITY COUNCIL this day f August, 1995
f1
ATTEST
ne,,f4>0644(1,9(
CitCit' Clerk
lap\comm&econ devel/cerb loan offer accept ance res 8/8/95 1.35 PM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — Page 2
Mayor --
lap \cornm&econ
ayor--
•
1
"-oject #C95-107 ATTACHMENT #2
WASHINGTON STATE
COMMUNITY ECONOMIC REVITALIZATION BOARD
INITIAL OFFER OF FINANCIAL AID
Offer Date: July 20, 1995
Pursuant to its authority derived from chapter 40, Laws of 1982, 1st ex. sess., and subject to the general and
special conditions attached hereto, the Community Economic Revitalization Board (hereafter referred to as
"CERB"), hereby offers to make funds available to the City of Yakima hereafter referred to as the
"Contractor", in order to aid in financing the cost of; or improvements to, public facilities consisting of water,
sewer, road, sidewalks, curbs, gutters and lighting as described in the application (hereafter collectively
referred to as the "Project").
Funds provided shall be in the form described and shall constitute the maximum allowable 20 -year repayment
period:
• A loan in the amount of 5463,189. Interest on the loan shall be computed
and paid at the rate of five and one-half percent (5.5%) per annum for twenty (20) years.
The offer herein provided for shall be subject to completion of: (1) special conditions, as applicable, (2)
)rney's certificate, (3) ordinance or resolution accepting terms and conditions of the offer, and (4) evidence
satisfactory completion of all necessary permit processes.
It is understood that a Final Contract shall be developed by CERB prior to disbursement of funds and
that no project costs incurred prior to _the executed Final Contract date will be reimbursed by CERB.
The Final Contract shall consist of:
Attachment #1 -
Attachment #2
Attachment #3
Attachment #4
Attachment #5
Signed Certification Page of Application Form
- Initial Offer of Financial Aid
- General and Special Conditions
- Loan Ordinance or Resolution
- Attorney's Certificate
If accepted, this Initial Offer of Financial Aid must be signed and returned to CERB prior to
September 8, 1995.
ACCEPTANCE
CERB CONTRACTOR
By: By:
,le: Title:
Date: Date:
lap \ comm&econ devel/cerb loan offer accept ance res 8/4/95 11:01 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT A
nS/o?-95
15:34 WR 51 LE=F' i Lu I 1m -wt. tt UN Lt l
COMMUNITY ECONOMIC REVITALIZATIOW*BCARD' c.
Traditional Program
ArtucATIoN yOR FUNDI[, 1
CERTIFICATION
Government applicant:
Contact:
Title:
Telephone:
Address:
$750,000 maximum CERB limit per project.
Amount of CERB loan requested:
Amount of C]RD grant requested:
Local Match (10% of CERB request):
Other funding sourccs/amount:
Total cost of project:
ERB Program
MAR 31.19i5
LF" 4-0 111r.
or" .. s
% ..
City of Yakima, Yakima County
Glenn J. Valenzuela
Director, Con.ununity & Economic Develop.
(509) 575..61'13
129 North Second Street
Yakima, Washington 98901
$463,189
$0
$50,000
$0
$513,189
Project description:
Mr. William .Ash, CEO, Central's Inc. has submitted a proposal to expand his existing light
manufacturing facility by constructing a new 20,000 square foot facility with associated
employee and client parking. The expansion will create 10-20 killed full-time job positions
at wages exceeding the $8.75 county average. The owner has committed $1.2 million
funding for his capital projects and an additional $15,000 foe' CERB match funds for the
public sector improvements. The City ofYakirna intends to apply for State CERB assistance
to pay for the required off-site improvements to West 7' Street from North 6th Avenue and
North 8th Avenue, and from West "Y" Street to Hathaway Alvenue. The construction of
public improvements shall provide for building the street sections in question to local access
street standards as noted in the accompanying "standard 'detail". Included with the
improvements are water, sewer, drainage and street lighting,. Ctentral's Inc. has applied and
received Council approval to vacate unneeded portions of the; North Bth Avenue right-of-way
fronting the west side of the industrial development site to accommodate enlargement of the
industrial site.
y
CITY OF YAKIMA., WASHINGTON
APPLICATION FOR FUNDING
lap \commdcecon devel/cert loan offer accept ance res 8/8/95 8:29 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT 13
CERJ3 .. 2
�,1795 15:35 WA ST DEPT COM TRADE , a ECON DEO 003
1
Adjacent properties are zoned light -industrial but Iack access t) public infrastructure. This
lack of access has resulted in unfavorable development oppo;'tunities. This improvement
will also allow for additional investment and development opportunities within the State
designated Community Empowerment Zone by providing neee7ary infrastructure for light -
industrial property.
1
The targeted development area is an area in transition from unused or poor residential
housing units to industrial development. The development of s aller parcels of industrially -
zoned land within this area for local business is a key stra cgy of the City's economic
development program. This project would serve as a catalyst for area revitalization and
reinvestment and the development of additional industrial sites without sacrificing the
environmental integrity of the area.
CITY OF YAKIMA, 'WASHINGTON
APPLICATION FOR FUNDING
lap\comm&econ devel/cerb loan offer acrept ance res 8/8/95 8:29 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT B
CERB - 3
08/07/95 19:35 WA ST DEPT COM TRADE 8 ECON DEL) 004
pssiatatism,
I HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO
THE COMMUNITY ECONOMIC REVITALIZATION BOARD JS TRUE AN!) CORRECT
TO THE BEST OF MY KNOWLEDGE AND BELIEF,
Signature of Responsible Official:
Print or Type Narne and Title:
Richard A. ' ais Jr.., City Manager
CITY OF YAKIN1[A, WASHINGTON
APPLICATION FOR FUNDING
lap \comm&econ devel/cerb loan offer accept ance rea 8/8/95 8:29 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT B
CERB - 5
Project #C95-107 ATTACHMENT #3
COMMUNITY ECONOMIC REVITALIZATION BOARD
GENERAL AND SPECIAL CONDITIONS
Except as supplemented or modified by the Special Conditions set forth on page nine (9), the following
articles shall constitute General Conditions to the Final Contract.
Article 1. DEFINITIONS
a) CERB shall mean the Community Economic Revitalization Board.
b) Contractor shall mean the City of Yakima.
c) The Contract Agreement shall consist of the Certification Page from the application, the Initial
Offer of Financial Aid, General and Special Conditions, and the Resolution or Ordinance
accepting CERB assistance and detailing repayment terms, if applicable, and shall include all
modifications thereto incorporated into documents.
d) This contract shall be construed for all purposes as a contract entered into pursuant to the laws
of the state of Washington.
Article 2 EXECUTION, CORRELATION AND INTENT OF DOCUMENTS.
The contract documents are complementary, and what is called for by one shall be binding as if called for
by all.
Article 3. PERMITS, LAWS AND REGULATIONS_
All permits and licenses necessary for the prosecution of the project works shall be secured and paid for
by the Contractor. Easements for permanent structures or permanent changes in existing facilities shall
likewise be secured and paid for by the Contractor.
The Contractor shall give all notices and comply with all laws, ordinances, rules and regulations bearing
on the conduct of the project work.
The Contractor must evidence satisfactory completion of all necessary permit processes.
The Contractor shall comply with all relevant local, state and federal regulations.
City of Yakima lap \commacecon devel/cel loan offer accept once res 8/8/95 &28 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C
Page 1 of 9
IJnless other arrangements are agreed upon in writing and incorporated into this document under Special
Conditions, the Contractor shall have ninety (90) days, or until the next regularly scheduled board
meeting after ninety days, to complete contract requirements between the date the Initial Offer of
Financial Aid is executed and the date the Final Contract is executed. Extensions may be considered
upon appropriate request.
Article 5 PUBLIC INDEBTEDNESS.
This agreement shall not be construed as permitting the Contractor to exceed any public debt limitation
established by statute, constitutional provision or otherwise, and the obligation created by a CERB loan
to the Contractor shall be included in the total constitutional debt obligation of the Contractor.
A CERB loan constitutes a full faith and credit debt obligation of the Contractor. The Contractor's
obligation to repay the CERB loan is unconditional.
Article 6. DISBURSEMENT OF FUNDS (check option 1 or 2)
OPTION 1 __ (advance of funds)
The precise terms of disbursement shall be as follows:
No funds will be disbursed for construction expenses until a bid is awarded for the project.
The initial installment will be payable upon CERB's receipt and acceptance of a state voucher
form certifying the project starting date, and the amounts that will be due and payable by the
Contractor within ninety (90) days of the request for the initial installment.
Documentation of funds expended will be required on an advance of funds request within ninety
(90) days of the :request. In the event the advanced funds have not been expended within 90 days,
a written explanation as to why funds have not been used and a timetable as to when funds are
anticipated to be expended shall be submitted no later than 90 days from disbursement.
Ten (10) percent of funds will be retained by CERB on all advance requests until documentation
of funds expended for the full amount is received.
All other payments shall be made on a reimbursement basis only upon CERB's receipt and
acceptance of a state voucher form and a recap of expenditures form providing a breakdovvri of
funds disbursed in the previous installment (forms provided by CERB) and documentation of
funds expended.
Total funds disbursed shall not exceed actual amounts required for the project described or the
amount of the C:ERB award, whichever is the lesser. All funds other than CERB's must be
disbursed prior to CERB funds, except where required on a matching basis by other federal or
state programs.
CERB will not recognize any requests for project cost over -suns.
City of Yak:irna lap\ corranteecon aevel/cerb io.,, of8/8/ ais AM Page 2 of 9
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C
If a combination loan and grant is approved, under no circumstances will payment be made from
the grant portion prior to total disbursement of funds from the loan portion.
OPTION 2 (reimbursement of funds)
The precise terms of disbursement shall be as follows:
Funds will be disbursed on a reimbursable basis only.
The initial installment shall be payable upon CERB's receipt and acceptance of a state voucher
form certifying the project starting date and appropriate certification of the amounts paid to date.
The second and any additional payments will be made in a similar manner and will include a recap
of expenditures form providing a breakdown of funds disbursed in the previous installment (forms
provided by CERB).
Total funds disbursed shall not exceed actual amounts required for the project described or the
amount of the CERB award, whichever is the lesser. All funds other than CERB's must be
disbursed prior to CERB funds, except where required on a matching basis by other federal or
state programs.
CERB will not recognize any requests for project costs overruns.
If a combination loan and grant is approved, under no circumstances will payment be made from
the grant portion prior to disbursement of funds from the loan portion.
Article 7. INTEREST ON CERB FUNDS.
In those cases where funds have been disbursed by CERB, and the commencement of the Contractor's
performance has been delayed beyond thirty (30) days after execution of the Final Contract, all
unexpended funds disbursed by CERB pursuant to this agreement shall be placed in an interest-bearing
account, in CERB's name, and all interest accruing on such funds shall inure to the benefit of CERB.
Article 8. REPAYMENT PROVISIONS
Loan payments shall be made to CERB in accordance with the terms described in Attachment #4 to this
agreement.
Upon failure to pay any installment, or any portion thereof; of principal or interest, CERB may at its
option declare the entire remaining balance of the loan, together with interest accrued thereon,
immediately due and payable. Failure to exercise its option with respect to any default shall not
constitute a waiver by CERB to exercise such options for any succeeding installment payment which may
then be in default. The Contractor shall pay the cost and reasonable attorney's fees incurred by the State
in any action undertaken to enforce its rights under this contract.
City of Yakima lap \ n° on devel/cerb loan offer accept once res 8/8/95 8:28 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT C
Page 3 of 9
Article 9. PROJECT PERFORMANCE.
'Che Contractor's performance shall commence within one hundred twenty (120) days after execution of
the Final Contract, unless otherwise specified in the Special Conditions. Extension may be considered
upon appropriate written request. Any changes are to be incorporated into this document as additions or
amendments to Special Conditions.
l:f at any time during the term of this agreement CERB determines that project performance is
unsatisfactory, including, but not limited to: (a) defective work not remedied, or (b) a reasonable doubt
that the Contract can be completed for the balance then unpaid, CERB reserves the right to withhold
payments until the problem is remedied or to exercise its rights of termination under Article 16 of this
agreement.
Article 10 OWNER SHALL CONTINUOUSLY MAINTAIN PROTECTION OF PROJECT WORK
AND PROPERTY AT OWNER'S RISK.
The Contractor shall continuously maintain adequate protection of all the project work from damage and
shall protect the property from injury or loss arising in connection with this contract. The entire work of
the Contractor shall be at the sole risk of the Contractor. The Contractor may elect to secure fire,
extended coverage and vandalism insurance or all-risk insurance to cover the project: work during the
course of construction.
The Contractor shall take all necessary precautions for the safety of employees on the project work, and
shall comply with all applicable provisions of federal, state and local safety laws and building codes to
prevent accidents or injuries to persons, on, about, or adjacent to the premises where the work is being
performed.
Article 11. ACCESS TO WORK AND RECORDS.
All property, facilities, and records developed pursuant to this agreement shall be available for inspection
upon request during regular business hours by CERB or its authorized representative. All records
supporting every request for payment shall be maintained in a manner which will provide an audit trail to
the expenditures. This paragraph shall be included in any and all subcontracts let by the Contractor under
this agreement.
Article 12. INDEMN F1CATION.
The Contractor shall defend, protect, and hold harmless the State of Washington, the Department of
Trade and Economic Development, CERB, or any state employee from all claims, suits, and or actions
arising from any damage caused, negligent act, or omission of the Contractor or any authorized
subcontractor, or any employees or agents of either while performing this contract.
City of Yakima lap\commececron Bevel/cerb loan offer accept ince res 8/8/95 &23 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT C
Page .4 of 9
Article 13. NONDISCRIMINATION.
During the performance of this contract, the Contractor shall comply with the following federal and state
nondiscrimination laws, regulations, and policies:
A. The Contractor shall not, discriminate against any employee or applicant for employment
because of race, color, sex, religion, national origin, creed, marital status, age, or the
presence of any sensory, mental, or physical handicap. This covers not only hiring but also
upgrading, demotion, transfer, recruitment, or selection for training.
B. The Contractor shall not, on grounds of race, color, sex, religion, national origin, creed,
marital status, age, or the presence of any sensory, mental, or physical handicap:
1. Deny any services or benefits provided to the public.
2. Provide any services or benefits in a different manner from those provided
to the general public.
3. Subject an individual to segregation or separate treatment while receiving any services
or benefits provided to the general public.
4. Deny any individual an opportunity to participate in any program provided by this
contract which is different from that afforded others.
5. Utilize criteria or methods of administration which have the effect of subjecting
individuals to discrimination in determining: (a) the types of services or benefits to be
provided; (b) the class of individuals to whom services or benefits will be provided; (c)
the situation in which services or benefits will be provided; or (d) the class of
individuals to be afforded an opportunity to participate in any services or benefits.
C. CERB shall advise the Contractor immediately if it becomes aware of any noncompliance with the
above laws and give reasonable time to cure the problem. in the event the Contractor refuses to
comply, this contract may be terminated in whole or in part, and the Contractor will be declared
ineligible for further contracts with CERB.
D. Whenever possible the Contractor will subcontract with minority-owned and women -owned
business enterprises certified by the Office of Ivrnority and Women's Business Enterprises.
Specific amounts subcontracted to those firms will be reported to the Department of Trade and
Economic Development to help it comply with RCW 39.19 which has as its goal that at least 10
percent of all its contracts go to minority-owned firms and 4 percent go to women -owned firms.
Article 14. CONTINGENCIES.
The duty of CERB to approve disbursement of funds pursuant to this agreement is contingent upon strict
compliance by the Contractor with the terms of the agreement. The duty of the State of Washington to
disburse funds is contingent upon the funds being available in the appropfiate accounts of the state
general fund.
City of Yakima
lap \commececon devel/cerb loan offer accept ance ret 8/8/95 &28 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN - EXHIBIT C
Page 5 of 9
Article 15. P .R -O MANGE REPORTING.
The Contractor shall submit progress reports as required by CERB. The Contractor shall also report, in
writing any problems, delays, or adverse conditions which will materially affect the ability to meet project
objectives, time schedules, or work units by the established time period. This disclosure shall be
accompanied by a statement of the action taken or contemplated and any CERB assistance needed to
resolve the situation.
Within forty-five (45) days of project completion or whenever CERB project assistance is terminated, the
Contractor shall submit a Project Completion Report to CERB, signed by the Contractor's responsible
party, which shall include an accounting of all expenditures, a description of work accomplished, further
refinement of private sector permanent employment impacts, etc. (format to be provided by CERB). If
the project is not completed, the report shall contain an estimate of the percentage of completion, and
shall contain a final accounting summarizing all expenditures not previously reported and shall include an
overall summary for the entire project.
After submission of the Project Completion Report, the Contractor shall continue, as required or for not
less than three years, to submit annual reports on the economic impact of the project. The reports shall
be in a format acceptable to CERB and describe the private sector employment and investment activity
resulting from the project.
Article 16. MINATION.
CERB may require strict compliance by the owner with the terms of this agreement, including but not
limited to, the requirements of the applicable statutes, rules and policies incorporated in this agreement,
and with the representatiions of the Contractor in its application for a grant as finally approved by CERB.
All obligations of CERB under this agreement may be suspended or canceled at the option of CERB if
any of the following occur:
a) The Contractor has failed to make satisfactory and reasonable progress to complete
the project, or CERB concludes it will be unable to.complete the project or any
portion of it.
b) The Contractor has either made misrepresentations in its application or in any other
information furnished to CERB in connection with this project, which
misrepresentations would have provided a basis upon which the application would
have otherwise been rejected.
CERB or its staff may suspend, or may terminate, the obligation to provide funding to the Contractor
under this agreement in the event of any breach or anticipatory failure by the Contractor to assure
performance of any of the obligations under this agreement, including the probable failure to occur of all -
or any of the private development or expansion which justified the project. CERB may at its absolute
discretion, provide a reasonable time for such defect to be cured, including allowing the Contractor to
find a satisfactory replacement in private development. Any such replacement must be approved by the
board.
In the event that any portion of the loan or grant amount has been paid to the Contractor under this
agreement at the time of breach, or failure of the Contractor to satisfactorily perforni or failure of the
City of Yakima
lap \c mececon devil/cerb loan offer accept ance tea 8/8/95 &28 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C
Page 6 of 9
private development to occur, CERB may require that such amount be repaid in full not later than ninety
(90) days from date of demand.
Article 17. RESTRICTIONS ON CONVERSION OF FACILITY TO OTHER USES.
The Contractor shall not at any time convert any property or facility acquired or developed pursuant to
this agreement to uses other than those for which CERB assistance was originally approved without the
prior written approval of CERB.
In the event that the Contractor converts any such property or facility to an unapproved use, the
Contractor shall pay to CERB all funds disbursed under this _contract with interest in full upon demand.
Article 18. NONWAIVER OF CERB RIGHTS.
CERB's failure to insist upon the strict performance of any provision or to exercise any right based upon
a breach of the contract or to accept any defective performance,shall not constitute a waiver of any rights
under this contract.
Article 19. DUPLICATION OF EFFORT.
No work to be performed under this contract shall duplicate any work to be charged against any other
contract, subcontract, or other source. This provision shall be included in any subcontract which exceeds
$2,500. The Contractor shall advise CERB, in writing, of any other work it has performed or is
performing which might be relevant to this contract.
Article 20. CHANGES.
Either party may, from time to time, request changes in this contract. Any such change shall be effective
only if committed to writing, signed by all parties, and incorporated into this agreement.
Article 21. IDENTIFYING MARKERS
CERB reserves the right to display, during the period covered by this agreement and after project
completion, appropriate signs or markers identifying the roles of the state and other agencies participating
financially in this project.
Article 22. INSURANCE COVERAGE.
The Contractor shall be in full compliance with all state unemployment and industrial insurance laws
while performing work under this contract. CERB will not be responsible for payment of industrial
insurance premiums or for any other claim or benefit for the Contractor, or any subcontractor or
employee of the Contractor, which might arise under the industrial insurance laws during performance of
this contract.
City of Yakima lap \commsecon devel/cert loan offer accept ante res 8/8/95 &28 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C
Page 7 of 9
ale 23 NOTICES.
All notices, demands, requests, consents, approvals, and other communication which may be or are
required to be given by either party to the other under this agreement shall be in writing and shall be
deemed to have been sufficiently given for all purposes when delivered or mailed by first class postage or
certified mail, postage prepaid, addressed as follows:
a) Notice to CERB:
Department of Community, Trade and Economic Development
Community Economic Revitalization :Board (CERB)
2001 6th Avenue Suite 2700
Seattle, WA 98121
b) Notice to Contractor:
Glenn J. Valenzuela (name)
Director, Community & Economic Development (title)
City of Yakima
129 North Second Street
Yakima, WA 98901
(political. subdivision)
(address)
(address)
or to such other official or addresses the Contractor shall have furnished to CERB in writing.
Article 24. ACCOUNTING.
]Project cost accounting will be accomplished within prescribed standards as approved by the Office of the
State Auditor and material and records evidencing such accounting shall be held available for audit by the
State Auditor, Division of Municipal Corporations, State of Washington. A copy of the State Auditor's
report(s) of the project will be provided to CERB by the Contractor.
City of Yakima lap \comme econ devel/cerb loan offer accept ance res 8/8/95 &28 AM
RESOLUTION ACCEPTING COFFER OF CERB LOAN — EXHIBIT C
Page 8 of 9
City of Yakima Project #C95-107
SPECIAL CONDITIONS
A. Repayment terms on the $463,189 loan are as follows:
Interest rate: 5.5 percent per annum on the outstanding principal balance.
Term: 20 years
• If the first disbursement is between January 1 and June 30, repayment will begin
July 1 following the first anniversary of the first disbursement of funds.
If the first disbursement is between July 1 and December 31, repayment will begin
January 1 following the first anniversary of the first disbursement of funds.
y
City of Yakima lap\commaceoon Bevel/cerb loan offer accept ance reit 8/8/95 &28 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT C
Page 9 of 9
CITYOFYAKIMA
LEGAL DEPARTMENT
THE NACHES BUILDING
424 E. YAKIMA AVENUE, SUITE 100
YAKIMA, WASHINGTON 98901
August 8, 1995
Chairman
Community Economic Revitalization Board
c/o Dept. of Trade & Economic Development
2001 Sixth Avenue, Suite 2700
Seattle, WA 98121
RE: Attorney Certification For Final Contract for CERB Loan
Dear Sir:
Phone: (509) 575-6030
SCAN 278-6030
FAX 575-6160
I am an attorney admitted to practice in the State of Washington. I am a duly selected
and duly appointed Assistant City Attorney of the City of Yakima, Washington.
I have examined the application filed by the City of Yakima (the "City") with the
Washington State Community Economic Revitalization Board ("CERB"), whereby
financial assistance is requested for a public facilities project, namely, construction
or improvement of public infrastructure consisting of sewer and water lines, streets,
curbs, gutters, sidewalks, and streetlights (the "Project") in the vicinity of the new
Central Heating and Plumbing facility in Yakima, Washington.
I have reviewed all resolutions relating to the Project, including those applying for
and accepting the offer of a loan of $469,189 at 5.5% interest for twenty years from
CERB. I have also reviewed the Final Contract to be executed by the CERB and the City
and all attachments incorporated within such agreement, including the General and
Special Conditions of the CERB loan.
I have inquired specifically of John R. Hanson, Director of the City's Department of
Finance and Budget, regarding the financial records and financial condition of the
City, paying particular attention to the composite outstanding debt. I am aware of the
provisions of Chapter 39.36 RCW and any successor or other statute or rule relating to
debt limitations for taxing districts including the City.
I have also inquired specifically of Glenn J. Valenzuela, Director of the City's Depart-
ment of Community and Economic Development, which is responsible for compre-
hensive land use plans and zoning ordinances for the City, regarding the proposed
Project outlined in the application in the light of existing comprehensive land use
plans and zoning ordinances for the City, including the plans for the acquisition of
land and the development thereof for the Project. For this purpose, I include
Shoreline Management Plans as comprehensive land use plans.
I have also examined or made appropriate inquiry after any and all documents and
records in addition to the above which are also germane to the proposed loan.
lap \commdcecon devel/cerb loan offer accept ance res 8/8/95 8:27 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT D
Chairman, Community Economic Revitalization Board
August 8, 1995
Page 2
Based on the foregoing, it is my opinion that:
1. The City is a properly constituted public body operating under the laws of the
State of Washington; the City is empowered to: receive and expend federal, state,
and local funds; to contract with the State of Washington; to receive and expend
CERB loan funds for the Project; and to accomplish the objectives set forth in the
City's application for CERB financial assistance.
2. The City is empowered to adopt the resolution, to which a copy of this certification
(unsigned) is attached as Exhibit D, accepting CERB's offer of a loan and providing
for the repayment of the loan under the Final Contract as described in the
resolution.
3. Such resolution accepting CERB's offer of a loan and providing for the repayment
of the loan as set forth in the Final Contract and the resolution was properly adop-
ted in accordance with the laws of the State of Washington.
4. The City has the right, title and interest in all real property required to construct
and implement the Project. Specifically, all construction and improvements shall
occur on real property which is either owned in fee simple by the City, or is City
right-of-way, or is subject to utility easements in favor of the City; and the City is
completely able, as a matter of its legal rights, without acquiring any additional
right, title or interest required to construct and implement the Project, to enter
onto any property where work must be done and to perform the work.
5. There is currently no litigation pending seeking to enjoin the commencement or
completion of the Project or to enjoin the City from repaying the loanextended by
CERB with respect to the Project. The City is not a party to litigation which will
materially affect its ability to repay such loan on the terms contained in the at-
tached resolution, without exception.
6. Assumption of this obligation would not exceed statutory and administrative rule
debt limitations applicable to the City of Yakima
7. To the best of my understanding, the Project is consonant with any and all land
use plans and zoning ordinances, as those terms are described above
Based on the factual representations made to me, for purposes of this opinion, by
Glenn J. Valenzuela and John R. Hanson, l further certify that the City is :in legal
compliance with those requirements of CERB upon which disbursement of the loan
commitment of the agency has been conditioned.
Very truly yours,
Lawrence A. Peterson
Assistant City Attorney
WSBA #14626
lap \comm6cecon devel/cerb loan offer accept ance res 8/8/95 8:27 AM
RESOLUTION ACCEPTING OFFER OF CERB LOAN — EXHIBIT I)