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Home My WebLink AboutItem VIII-B-2 RESOLUTION NO. 3 7 2 0 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF~ AUBURN, WASHINGTON, AUTHORIZING THE MA VOR TC) EXECUTE A PUBLIC WORKS TRUST FUND LOA(\I AGREEMENT BETWEEN THE CITY OF AUBURN (THE: CITY) AND THE PUBLIC WORKS BOARD (THE BOARD) FOR PROJECT NO~ C9056, AUBURN WAY SOUTH SEWER~. PHASE B WHEREAS, the City desires to construct sanitary sewer capacity irrtprovements along Auburn Way South; and WHEREAS, the City applied for and was granted a Public Works Trust Fund Loan in the amount of $2.156,880 at an interest rate of one-half percent (~%) pe~r annum on the outstanding principal balance for a 20-year term, with a participation match of fifteen percent (15%); and WHEREAS, the City and the Muckleshoot Indian Tribe (MIT) e,xecuted an Interlocal Agreement pursuant to Auburn Resolution No. 3660, adopted by l\uburn City Council on March 1, 2004, for sharing in the replacement and maintenance, costs for a new wastewater conveyance facility, conveying wastewater from MIT parc:els located outside of Auburn City limits to King County's conveyance and treatment facilities; and WHEREAS, the scope of work for this Public Works Trust Fund Loan is identified in the 2004 Budget as Project No~ C9056, Auburn Way South Sewer, Phase B; and WHEREAS; the MIT's financial participation will be used as the City'~s match for the Public Works Trust Fund Loan; and -----------_................------ Resolution No. 3720 April 20,2004 Page 1 Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this day of , 2004. CITY OF AUBURN PETER B. LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk APPROVED AS TO FORM: ----------------------------- Resojution No. 3720 April 20. 2004 Page 3 4~04 Interest Earned on Public Works Trust Fund Monies An interest earned on Public Works Trust Fund Monies held by the LOCAL GOVERNMENT shall accrue to the benefit of the LOCAL GOVERNMENT and be applied to the eligible costs of the approved project. Benefits shall accrue in one of two ways: 1. Reduce the amount of the Public Warks Trust Fund loan. 2. Pay any part of eligible project costs that are in excess of AITACHMENT I: SCOltE OF WORK estima tes, if there is an overrun of proj ect costs. The LOCAL GOVERNMENT shall establish procedures to ensure that all monies received fi·om the Public Warks Trust Fund loan can be readily identified and accounted for at any time during the life of this loan agreement. Such procedures sha1l consist of the establishment of a separate fund, account, sub-account or any other method meeting generally accepted accounting principles. 4.05 Time ofPerfonnance The LOCAL GOVERNMENT shall begin the activities identified within A IT ACHMENT I: SCOPE OF WORK. no later than three months after loan agreement execution, and reach project completion no later than forty-eight (48) months after the date of agreement execution. Failure to perform within the time frame described in the preceding paragraph may constitute default of this agreement. In the event of extenuating circumstances, the LOCAL GOVERNMENT may request, in writing, that the BOARD extend the deadline for project completion. The BOARD may, by a two..thirds vo te, extend the dead} ine. The term of this agreement shall be for the entire tenn of the loan, irrespective of actual projeçt completion, unless tenninated sooner as provided herein. 4.06 Repavment The first loan repayment under this agreement is due JuJy 1, 2005, and subsequent instaHments are due on July 1 of each year during the term of the loan. The first repayment under this agreement shall consist of interest only at the rate of one..half percent (1/2%) per annum, calculated on a 360-day year of twelve 30-day months, applied to funds received. Interest will begin to 'accrue from the date each warrant is issued to the LOCAL GOVERNMENT. Subsequent repayments shall consist of the principal balan(~e due divided by the loan tenn remaining plus interest on the unpaid balance of the loan. The final payme:nt shall be an amount sufficient to bring the loan balance to zero. The LOCAL GOVERNMENT has the right to repay the unpaid balance of the loan in full at any time, and the right to repay at a faster rate than is provided in this agreement, provided that any such payment must equal or exceed the principal amount normally due on an annual basis~ Page 4 2004 PWTF Construction Loan Agreement .~~ ~ ..............- ~~........................ ~ ~ ~.~.... - ------.---............. -,.... . .... ~...~.- ....-.-- .------... ................ ............~......-.-......._.. 4.09 Loan Security The LOCAL GOVERNMENT must select one of the following options for securing repayment of the loant Please Înitial the appropriate option. 1. General Obligation: This loan is a general obligation of the LOCAL Go\rERNMENT~ OR 2. '4E£¿Revenue Obligation: This option may be used only if the entire project is a domestic water, s~nitary sewer, stann sewer or soJid waste utility project. LOCAL GOVERNMENfS performing a storm sewer project that have not created a storm sewer utility or a combined sanitary sewer/storm sewer utility may not use this option. Projects providing for a mixture of bridge, road, domestic water, sanitary sewer, and storm sewer activities may not use this option. This loan is a revenue obligation of the LOCAL GOVERNMENT payable solely from the net revenue of the utility system indicated below. Payments shall be made from the net revenue of the utility after the payment of the principal and interest on any revenue bonds, notes, warrants or other obligations of the utility having a lien on that net revenue~ As used here, Hnet revenue" means gross r,evenue minus expenses of maintenance and operations~ The BOARD grants the LOCAL GOVERNME1'-lT the right to issue future bonds and notes that constitute a lien and charge on net revenue superior to the lien and charge of this loan agreement Please choose and initial one of the following utility systems: Water :~~,tL..8fínitary Sewer (Wastewater) Stonnwater Water/Sanitary Sewer Stormwater/Sanitary Sewer Solid Waste OR 3. Local Improvement District: Pursuant to RCW 35~51~050, the LOCAL GOVERNMENT pledges to repay this loan from assessments collected from a Local Improvement District, Local Utility District or ~ther similar special assessment district in which the improvements financed by this loan are located. The name of the special assessment district is Nothing in this section shall absolve the LOCAL GOVERNMENT of its obligation to make loan . -repayments when due, and to adjust rates, fees, or surcharges, if necessary, to meet its obhgations under this agreement Page 6 2004 PWTF Constructi on Loan Agreement Scope of.Work Page Two PW -04.:.691-001 Estimated Project Costs: Total Costs Engineering $ N/A Environmental Review $ N/A L~dlR-O- W Acqµisition $ ·Public Involvementl In fonn ati on· . . $ Other Fees $ Construction $ 3,200,000 Construction Inspection $ 150,000 Contingency( 70/0) $ 224,000 1 ~ f 8~84% Tax $ 282,880 2. Other (Specifiy) $ TOT AL.ESTIMA TED COSTS $ 3~856,880 Anticipated Fund Sources: A~ Federal Grants $ State Grants $ B. Locally Generated Revenue General Funds $ Capital Reserves $ 100,000 Other Funds $ Rates -$ Assessments $ (LID, RID, ULID) $ Special Levies $ ·Federal ~an(s) from: (identify all) $ $ $ State Loan(s) from: (identify all) .$ $ $ Other: (identify sources) . Muckelshoot Indian Tribe $ 1,600,000 $ TOT AL LOCAL REVENUE $ 1,700;000 C. PUBLIC WORK·S TRUST FUND LOAN $ 2,156,880 Scope of Work Page Three PW-04-69 1-00 1 Calculating Local Percentage: Notes: 1. Grant Funds cannot be counted as local match. Calculate as follows Total Local Revenue PWTF Loan + Total weal Revenue 1,700,000 3,856,880 Five Percent (5%) Ten Percent (1(>%) Fifteen Percent (15 % ) = Local Percentage - 44% for a loan interest rate of . for a loan interest rate of for a loan" interest rate of 20/0 1% 0.50 %