HomeMy WebLinkAboutR-2016-018 Yakima Sports Complex Grant from Yakima County SIED BoardA RESOLUTION
RESOLUTION NO. R-2016-018
authorizing the City Manager to apply for funding, accept the funds if offered
and execute the necessary agreement for $900,000 in a grant and a
$900,000 loan from the Yakima County SIED Board to contribute funds for
the engineering, design and reconstruction of certain streets and utilities
necessary to support the Yakima Sports Complex
WHEREAS, the Yakima City Council established that development of the Yakima Sports
Complex, is an Economic Development priority for the City of Yakima, and
WHEREAS, community and private involvement in this effort has been strongly supported in
the Community Survey, the City Council Strategic Plan and the Yakima Urban Area Comprehensive
Plan 2025; and
WHEREAS, the Yakima City Council on April 7, 2015 entered into agreements with SOZO, a
Washington non-profit corporation for a public-private partnership to create multiple soccer fields,
parking lots and related improvements and
WHEREAS, the City of Yakima has agreed to invest $4 1 million for capital expenditures
toward the acquisition of property and the development of this public park. The City funds will be
provided from long-term debt secured by the general fund revenues. Debt service for the repayment
are included in the 2015 — 2016 budget and in the 5 -year financial plan of the City, and
WHEREAS, the private contributions from SOZO to develop the sports campus is estimated
at $6.4 million. SOZO is also responsible for the maintenance of the Yakima Sports Complex, and
WHEREAS, improvements to the existing public streets in the vicinity of the proposed Yakima
Sports Complex will improve public safety, facilitate access to the development and improve the
neighborhood. Street upgrades are generally a requirement for new development in Yakima County
as well as within the City of Yakima. SIED funds are projected to cover approximately 52% of the cost
to upgrade the existing street network to urban standards, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to submit a grant application which, if awarded will
require the City of Yakima to execute Agreement with the Yakima County SIED Board for terms and
conditions of the loan and grant.
ADOPTED BY THE CITY COUNCIL this 2nd day of Febr ary, Q016.
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SIED CONTRACT YC-SOZO-16
YAKIMA COUNTY
and
CITY OF Yakima
(Street Frontage Improvements for SOZO Park)
1. PARTIES
This Supporting Investments in Economic Diversification (hereinafter referred to as SIED)
Contract is made by and between Yakima County (hereinafter referred to as the County) whose
address is 128 North Second Street, County Courthouse, Room 232, Yakima, Washington 98901,
and the City of Yakima (hereinafter referred to as the City) whose address is 129 North Second
Street, Yakima, Washington 98901. Notices between the parties shall be made where and as
provided for on Page 7, Section 22, NOTICES.
2. TERM
This Contract takes effect upon execution hereof by the authorized representatives of both parties
and continues in effect until all payments required under Section 5, MUTUAL
CONSIDERATION, Subsection B. REPAYMENT OF COUNTY LOAN, have been made or
until terminated as provided for in Section 8, SUSPENSION, TERMINATION, AND
CLOSEOUT, provided, the County's right under Section 5, MUTUAL CONSIDERATION,
Subsection D. OWNERSHIP AND USE, to use the Project shall continue so long as the Project
remains in use.
3. PURPOSE
The purpose of this Contract is to provide for the construction of certain infrastructure
improvements (hereinafter referred to as the Project) using certain County funds designated for
such infrastructure. The Project will support the necessary street frontage improvements on
existing public streets for a multi -sports park complex. The project will reconstruct an existing
street network of Sorensen Road, South 36th Avenue, Spring Creek Road and a short segment of
48th Avenue, just south of West Washington Avenue. This existing street network provides
primary access into the proposed "Yakima Sports Complex".
4. RECITALS
A. The Parties make this Contract based on and in recognition of certain relevant facts and
circumstances including:
B. Sales and use taxes are collected in and for the County under authority of RCW 82.14.370
and Yakima County Code 3.10.010 for the purpose of financing public facilities in the
County, and the proceeds are deposited in the Yakima County Infrastructure Fund (also
referred to as SIED Fund), according to YCC 3.10.040.
C. The City proposes to construct the Project with a combination of City, private, and County
funds, including $1,800,000.00 from the SIED Fund, $900,000.00 to be in the form of a
loan, and $900,000 to be in the form of a grant, and thereafter to own and operate the
Page 1 of 9 Contract No. YC-SOZO-16
Project for the benefit of the City and the County.
D. RCW 82.14.370 was adopted to serve the goals of promoting business in rural distressed
areas, providing family wage jobs and the development of communities of excellence in
such areas, and the parties expect the Project to further these goals.
E. RCW 43.160 and 43.160.020 adopted and amended for related purposes with those of
RCW 82.14.370, define public facilities to include various buildings, structures and works,
such as the Project.
F. The County, under authority of RCW 36.01.085, and by agreement of February 19, 1999,
has engaged the Yakima County Development Association, also known as New Vision, to
provide administrative and technical assistance in furtherance of the County's economic
development.
G. The County has also created the SIED Board to review applications for grants from the
SIED Fund and make recommendations for SIED Fund investments based on commitment
of other funds, potential for resulting job creation, and other factors.
H. New Vision has investigated the Project and assisted in preparing the pending application
for SIED funds, and the SIED Board has reviewed the application for SIED funds and has
recommended approval.
I. The SIED Fund balance is sufficient to make the requested contribution to the Project.
J. RCW 39.34 authorizes interlocal agreements whereby municipal governments may jointly
exercise the powers granted to each.
5. MUTUAL CONSIDERATION
A. COUNTY LOAN—The County shall loan Nine Hundred Thousand Dollars and Zero
Cents ($900,000.00) for the Project described herein. This loan amount shall be drawn
on the SIED Fund by County warrant, payable to the City, upon the next available
Yakima County Auditor's warrant issue.
B. REPAYMENT OF COUNTY LOAN—The City shall repay the County's loan of Nine
Hundred Thousand Dollars and Zero Cents ($900,000.00) with interest on unpaid
principal, at an annual per annum rate of 2.625%, which is the Yakima County
Interfund Loan Rate for the equivalent term of the loan. In the event the contract is fully
executed after June 30, 2016, the parties agree to use the current Yakima County Interfund
Loan Rate on the date this contract is fully executed by both parties. Interest shall accrue
from the date this contract is approved by the County.
Repayment of principal and interest shall be made in ten annual installments. The
first payment shall be due on June 1, 2018, and annual payments thereafter shall be
due on June 1 of each year with the fmal payment nevertheless due on June 1, 2027;
Provided however, that the final installment may be in such greater or lesser amount as
shall be required for full amortization of the repayment amount.
Page 2 of 9 Contract No. YC-SOZO-16
Payment shall be by check payable to Yakima County Infrastructure Fund and
delivered to Yakima County Treasurer, Yakima County Courthouse, Room 115, 128
North 2nd Street, Yakima, WA 98901. The City obligation hereunder shall be a limited
general obligation of the City, payable from any legally available source of funds. Exhibit
A attached hereto and incorporated herein reflects the Debt Service Schedule as noted.
In the event of payment by the City of any one or more installments, or of the entire
loan balance, before the date prescribed in Exhibit A, interest shall accrue on such
installment(s) or balance until, but not beyond, the June 1 next succeeding the date of
such payment(s). If more than one installment is paid during any repayment year,
then the repayment period recited above shall be correspondingly shortened and the
scheduled of payments reflected in Exhibit A shall be correspondingly advanced.
C. COUNTY GRANT—The County shall grant Nine Hundred Thousand Dollars and
Zero Cents ($900,000.00) to the City for the Project described herein. This grant shall be
by County warrant drawn on the SIED Fund and payable to the City within 30 days
of the County's receipt of a signed copy of the Project engineer's certificate that 50
percent of the work on the Project has been completed and the City's invoice for said
grant.
D. OWNERSHIP AND USE—The City shall construct, own, maintain, and operate the
Project as a part of its public infrastructure for economic development, available for use by
manufacturing and industrial concerns proximate to the Project. The City shall also permit
the use of the Project by the County and its departments on like terms with other users, at
such time as the Board of Yakima County Commissioners may deem expedient. For
purposes of this paragraph, ownership, maintenance, and operation of the Project or any
portion thereof by another municipality, under any conveyance or dedication, which is
subject to and preserves the County's right of use, shall be deemed ownership,
maintenance, and operation by the City.
6. RECORDS, REPORTS AND AUDITS
The City agrees to maintain such records, make such reports, and follow such procedures as may
be required by the County, pertaining to this Contract. All records pertaining to this Contract and
work undertaken hereunder shall be retained by the City for a period of seven years after final
audit unless a longer period is required to resolve audit findings or litigation. The County and
other authorized representatives of the State and Federal government shall have access to any
books, documents, papers, and records of the City, which pertain to this Contract or work
undertaken hereunder for the purpose of making audit, examination, excerpts, and transcriptions.
7. RELATIONSHIP OF PARTIES AND AGENTS
A. The relationship of the City to the County, with regard to construction of the Project, shall
be that of an independent contractor rendering professional services. The City shall have
no authority to execute contracts or to make commitments on behalf of the County and
nothing contained herein shall be deemed to create the relationship of employer and
employee or principal and agent between the County and the City.
Page 3 of 9 Contract No. YC-SOZO-16
B. The City represents that it has or will secure at its own expense all personnel, contractors,
and/or subcontractors required in order to perform work under this Contract. Such
personnel shall not be employees of the County. All such personnel, contractors, and/or
subcontractors shall be fully qualified and authorized/permitted under State and/or local
law to perform such services.
C. All services required hereunder will be performed by the City or under its supervision and
all personnel engaged in the work shall be fully qualified and shall be authorized or
permitted under State or local law to perform such services.
8. SUSPENSION, TERMINATION, AND CLOSEOUT
A. If the City fails to comply with the terms and conditions of this Contract, the County may
pursue such remedies as are legally available, including, but not limited to, the suspension
or termination of this Contract in the manner specified herein:
B. SUSPENSION—If the City fails to comply with terms and conditions of this Contract, or
whenever the City is unable to substantiate full compliance with provisions of this
Contract, the County may suspend this Contract pending corrective action or investigation,
effective not less than seven days following written notification to the City or its authorized
representative. The suspension will remain in full force and effect until the City has taken
corrective action to the satisfaction of the County and is able to substantiate its full
compliance with the terms and conditions of this Contract. No obligations incurred by the
City or its authorized representative during the period of suspension will be allowable
under this Contract, except:
I. Reasonable, proper, and otherwise allowable costs which the City could not
avoid during the period of suspension;
II. Otherwise, allowable costs incurred during the period of suspension, if upon
investigation, the County is satisfied of the City's compliance with the terms
and conditions of this Contract to the extent of the compensation claimed by
the City.
C. TERMINATION FOR CAUSE—If the City fails to comply with the terms and
conditions of this Contract and any of the following conditions exist:
I. The lack of compliance with the provisions of this Contract were of such scope
and nature that the County deems continuation of this Contract to be
substantially detrimental to the interests of the County;
II. The City has failed to take satisfactory action as directed by the County or its
authorized representative within the time period specified by same;
III. The City has failed within the time specified by the County or its authorized
representative to satisfactorily substantiate its compliance with the terms and
conditions of this Contract; then,
IV. The County may terminate this Contract in whole or in part, and thereupon shall
notify the City of termination, the reasons therefore, and the effective date, provided
Page 4 of 9 Contract No. YC-SOZO-16
such effective date shall not be prior to notification of the City. After this effective
date, no charges incurred under any terminated portions outlined in the application
for funding are allowable.
D. TERMINATION FOR OTHER GROUNDS—This Contract may also be terminated in
whole or in part by mutual consent and written agreement setting forth the conditions of
termination, including effective date and, in case of termination in part, that portion to be
terminated.
9. COPYRIGHT RESTRICTION
No report, maps, or other documents produced in whole or in part under this Contract shall be the
subject of an application for copyright by or on behalf of the City.
10. COMPLIANCE WITH LAWS
The County and the City shall comply with all applicable laws, ordinances, and codes of the
Federal, State, and local governments with regard to the performance of this Contract.
11. NONDISCRIMINATION & TITLE VI OF THE CIVIL RIGHT ACT OF 1964
The Contractor agrees that it shall not discriminate against any person on the grounds of race, creed,
color, religion, national origin, sex, sexual orientation, veteran status, pregnancy, age, marital status,
political affiliation or belief, or the presence of any sensory, mental or physical handicap in violation
of the Washington State Law Against Discrimination (RCW chapter 49.60) or the Americans with
Disabilities Act (42 U.S.C. 12101 et seq.) or any other applicable state, federal or local law, rule or
regulation.
The Contractor and subcontractor shall abide by the requirements of 41 CFR §§ 60-300.5(a) and
60-741.5(a). These regulations prohibit discrimination against qualified individuals on the basis of
protected veteran status or disability, and require affirmative action by covered prime contractors
and subcontractors to employ and advance in employment qualified protected veterans and
individuals with disabilities.
Under Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color,
creed, religion, sex, or national origin, be excluded from participation in, be denied the benefits
of, or be subjected to discrimination under any program or activity receiving Federal financial
assistance.
12. SECTION 109—HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
No person in the United States shall on the grounds of race, color, creed, religion, sex, or national
origin be excluded from participation in, be denied benefits of, or be subjected to discrimination
under any program or activity funded in whole or in part with funds made available under this
title.
Page 5 of 9 Contract No. YC-SOZO-16
13. AGE DISCRIMINATION ACT OF 1975 (As Amended)
No person shall be excluded from participation, denied program benefits, or subjected to
discrimination on the basis of age under any program or activity receiving Federal funding
assistance (42 U.S.C. 610 et. seq.)
14. SECTION 504 OF THE REHABILITATION ACT OF 1973 (As Amended)
No otherwise qualified individual shall, solely by reason of his or her handicap, be excluded from
participation (including employment), denied program benefits, or subjected to discrimination
under any program or activity receiving Federal funds (29 U.S.C. 794).
15. INTEREST OF AGENTS AND OFFICERS OF THE COUNTY AND THE CITY
No member of the governing body of either party and no other officer, employee, or agent of
either party who exercises any functions or responsibilities in connection with the planning or
carrying out of the Project shall have any personal financial interest, direct or indirect, in this
Contract.
16. HOLD HARMLESS AND INDEMNITY
The City shall indemnify and hold harmless the County, its officers, agents, and employees, from
all liability, loss or damage, including costs of defense they may suffer as a result of claims,
demands, actions costs, or judgments which result from the activities to be performed by the City,
its agents, employees, or subcontractors pursuant to this Contract.
17. PUBLIC LIABILITY
The City or its contractor(s) shall maintain for the duration of work under this Contract, issued on
an occurrence basis, comprehensive liability insurance with a combined single limit of not less
than one million dollars ($1,000,000.00) from a company authorized to provide insurance in the
State of Washington. Said policies shall provide that the policy shall not be canceled or altered by
any party without written notice to Yakima County, delivered not less than 30 days prior to such
cancellation or alteration. Applicant certifies that comprehensive liability insurance with a
combined single limit of not less than $1,000,000.00 is in effect.
18. ASSIGNABILITY
The City shall not assign any interest in this Contract and shall not transfer any interest in this
Contract (whether by assignment or novation) without prior written consent of the County thereto,
provided, however, that claims for money by the City from the County under this Contract may
be assigned to a bank, trust company, or other financial institution without such approval. Written
notice of any such assignment or transfer shall be furnished promptly to the County by the City.
19. NON -WAIVER
The failure of either party to insist upon strict performance of any provision of this Contract or to
exercise any right based upon a breach thereof or the acceptance of any performance during such
breach shall not constitute a waiver of any right under this Contract.
Page 6 of 9 Contract No. YC-SOZO-16
20. CONTRACT MODIFICATIONS
It is mutually agreed and understood that no modification or waiver of any clause or condition of
this Contract is binding upon either party unless such modification or waiver is in writing and
executed by the County and the City.
21. SEVERABILITY
If any portion of this Contract is changed per mutual contract or any portion is held invalid, the
remainder of this Contract shall remain in full force and effect.
22. NOTICES
A. Unless stated otherwise herein, all notices and demands shall be in writing and sent or
hand -delivered to the parties to their addresses as follows:
TO CITY: Jeff Cutter
Interim City Manager
129 North 2nd Street
Yakima, WA 98901
TO COUNTY: Craig Warner
Financial Services Director
128 North Second Street, Room 232
Yakima, WA 98901
or to such other addresses as the parties may hereafter designate in writing. Notices and/or
demands shall be sent by registered or certified mail, postage prepaid, or hand -delivered.
Such notices shall be deemed effective when mailed or hand -delivered at the addresses
specified above.
23. INTEGRATION
This Contract contains all terms and conditions agreed to by the County and the City. There are
no other oral or written agreements between the City and County as to the subjects contained
herein. No changes or additions to this Contract shall be valid or binding upon either party unless
such change or addition be in writing and executed by both parties.
24. GOVERNING LAW AND VENUE
All questions of the validity, construction, and application of this Contract shall be governed by
the laws of the State of Washington. Venue for any suit between the parties arising out of this
Contract shall be the Superior Court of Yakima County, Washington.
Page 7 of 9 Contract No. YC-SOZO-16
25. FILING
Upon execution by the authorized representatives of the parties, a copy of this Contract shall be
promptly filed with the Yakima County Auditor pursuant to RCW 39.34.040.
* * * * * * * * * * * * * * *
Page 8 of 9 Contract No. YC-SOZO-16
IN WITNESS WHEREOF, the County and the City have executed this Contract as of the date and year
last written below.
CITY OF YAKIMA
Jef uXt Interim City Manager
Approved as to Form:
Mark Kunkler; Acting City Attorney
Attest:
BOARD OF COUNTY COMMISSIONERS
r
is ael D. Leita, Chairman
�,� /
Ke f n iuchey, Commissioner
Excused
J. Rand Elliott, Commissioner
Approved as to Form:
1-;`)4/1r,, :7205)
an Clark, Deputy Prosecitting Attorney
ONTRACT AUTHORIZATION•. �,M A c ou 441
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Attest: s►oa 0.: o`�WASH�,yop -too 1
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Tiera L. Girard, Clerk of the B�@ clo �......Nr,,.r+�'44),!
CITY CONTRACT NO:hulfras
RESOLUTION NO:
BOCC162-2016
Date May 24, 2016
Page 9 of 9 Contract No. YC-SOZO-16
Dared 5/24/2016 Debt Service Schedule
Dekiend• 5/24/2016 City of Yakima
Street Frontage Improvements for SOZO Park
SIA 30/360 YRLY 7/6
Situp Int
Coupon Int Cale Principal Effective Interest Credit Periodic Outstanding
Period Date Day Cats Payment Coupon Rate Payment Enhancements Debt Service Balance
3 6/1/2018 727/360 58,487.63 2.62500 47,709.38 106,19701 841,512.37
4 6/1/2019 360/360 84,107.31 2.62500 22,089 70 106,197 01 757,405.06
5 6/1/2020 360/360 86,315 13 2.62500 19,881.88 106,197.01 671,089.93
6 6/1/2021 360/360 88,580.90 2.62500 17,616.11 106,197 01 582,509 03
7 6/1/2022 360/360 90,906 15 2.62500 15,290.86 106,197 01 491,602.88
8 6/1/2023 360/360 93,292.43 2.62500 12,904.58 106,197.01 398,31045
9 6/1/2024 360/360 95,741.36 2.62500 10,455.65 106,197.01 302,569.09
10 6/1/2025 360/360 98,254.57 2.62500 7,942.44 106,197.01 204,314.52
11 6/1/2026 360/360 100,833.75 2.62500 5,363.26 106,197.01 103,480.77
12 6/1/2027 360/360 103,480.77 2.62500 2,716.37 106,197.14 0.00
10 Records = 10 5900,000.00 5161,970.23 30.00 $1,061,970.23
True Interest Cost (TIC)
Arbitrage Yield Limit (AYL)
Average Life
2.6140404 Face Value of Bond Issue $900,000.00
2.6140404 Accrued Interest (+) $0.00
6.8558823 Original Issue Premium/Discount (+) $0.00
Underwriter Discount (+) $0.00
Lump -sum credit enhancements (-) $0.00
Prepared by: Yakima County Trearurer
Prepared an: 5/25/2016 11:3 1630 Rpt O1j
:Mutt-EareEkrateMainDb
YCSOZO-16.2016A
ITEM TITLE:
SUBMITTED BY:
SUMMARY EXPLANATION:
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. S.G.
For Meeting of: February 2, 2016
Resolution authorizing an application to the Yakima County
"Supporting Investments in Economic Development" Program,
(SIED) for the street frontage improvements of the Yakima Sports
Complex project
Jeff Cutter, Interim City Manager
Joan Davenport, Community Development Director
The City of Yakima is seeking funding from the "Supporting Investments in Economic Development "
Program (SIED) for improvements in the vicinity of the Yakima Sports Complex. The application requests
$900,000 in loan and $900,000 in grant. Total project cost is estimated to be $3.5 million. The City of Yakima
will provide approximately $1.7 million of the total cost from City Council authorized funds. Annual debt
service to repay the requested $900,000 loan from the SIED Board will be General Fund.
The improvements to which these funds will be applied will include reconstruction of Spring Creek Road,
together with a new right turn lane onto Washington Avenue to provide necessary and adequate access to the
sports complex in accordance with the terms of the City's agreement with SOZO Sports of Central
Washington.
Resolution: X Ordinance: X
Other (Specify):
Contract: X Contract Term:
Start Date: End Date:
Item Budgeted: Amount:
Funding Source/Fiscal Impact:
Strategic Priority: Economic Development
Insurance Required? Yes
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
City Manager
Adopt the resolution that authorizes the Interim City Manager to submit the grant and loan application. If
awarded, this resolution authorizes the acceptance and execution of the required agreement with the SIED
Board. SIED funds are requested for the street improvements.
ATTACHMENTS:
Description Upload Date
D IResollution <Aut ornr.liirnn. Q:::iity to apply .for SIIIE::::I1/25/2016
Type
Resollutlioirn