HomeMy WebLinkAbout3655ORDINANCE NO. 36 5�
AN ORDINANCE of the City Council of the City
of Kent, Washington, authorizing the acquisition of
personal property and the execution of a financing contract
with the Office of the State Treasurer and authorizing the
Mayor to execute all required documentation relating to the
acquisition of said personal property for energy audit
capital improvements on city bwldings.
WHEREAS, on November 19, 2002, the city council authorized the
mayor to sign all necessary documents to allow Washington Department of General
Administration to conduct an energy audit on city buildings and potentially to borrow
from the State Treasury for any recommended conservation measures, with repayment
to the state over a ten (10) year period, based on realized energy savings, and
WHEREAS, an audit was completed that noted an extensive list of
conservation recommendations, attached and incorporated as Exhibit A, and
WHEREAS, the cost of the audit was $43,622 00, and the cost for the
proposed conservation measures including the audit is $1,285,409.00; and
1 Energy Audit Capital Improvements
For City Buildings
WHEREAS, the City of Kent (the "Local Agency") has executed a
Notice of Intent to the Office of State Treasurer, in the form attached and incorporated
,as Annex 1 (the "NOI"), in relation to the acquisition of and the financing of the
acquisition of the personal property identified in Annex I (the "Property"), under the
provisions of Chapter 39 94 RCW, and
WHEREAS, the City has negotiated with the State Treasury to borrow
funds, making payments twice annually for ten (10) years using the savings from
reduced energy consumption to cover the cost of the improvements, and
WHEREAS, it is deemed necessary and advisable that the City enter
into a Local Agency Financing Contract with the Office of the State Treasurer, in the
form attached and incorporated as Annex 2 (the "Financing Contract"), in an amount
not to exceed $12 Million, in order to acquire the Property and finance the acquisition
of the Property and related financing costs, and
WHEREAS, the City will undertake to acquire the personal Property on
behalf of and as agent of the Washington Finance Officers Association (the "WFOA")
pursuant to the terms of the Financing Contract, and in accordance with all applicable
purchasing statutes and regulations applicable to the City; and
WHEREAS, the City desires to appoint the individuals set forth in
Annex 3 as the City's representatives in connection with the acquisition of the
personal property and the execution of the Financing Contract (each an "Authorized
Agency Representative"), NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON
DOES HEREBY ORDAIN AS FOLLOWS
Energy Audit Capital Improvements
For City Buildings
SECTION 1. The individuals holding the offices or positions set forth
in Annex 3 are each hereby appointed as representatives of the Local Agency in
connection with the acquisition of the identified Property and the execution of the
'Financing Contract and all other related documents A minimum of one (1)
Authorized Agency Representatives shall be required to execute any one (1) document
in order for it to be considered duly executed on behalf of the Local Agency.
SECTION 2. The form of the Financing Contract attached as Annex 2
is approved, and the Authorized Agency Representatives are authorized and directed
to execute and deliver the Financing Contract, in an amount not to exceed
$1,285,409 00 and in substantially the form attached with those changes as may be
approved by the Authorized Agency Representatives for the acquisition of the
Property and for the financing of the acquisition of the property and related financing
costs
SECTION 3. The City authorizes the acquisition of the Property as
of the WFOA in accordance with the terms and provisions of the Financing
Contract
SECTION 4. The Authorized Agency Representatives are authorized
execute and deliver to the Office of the State Treasurer all other documents,
agreements, and certificates, and to take all other action that any of them deem
necessary or appropriate in connection with the financing of the Property, including,
but not limited to, any amendment to the NOI and any agreements relating to initial
and ongoing disclosure in connection with the offering of securities related to the
financing
SECTION 5. If any section, subsection, paragraph, sentence, clause, or
phrase of this ordinance is declared unconstitutional or invalid for any reason, such
decision shall not affect the validity of the remaining portions of this ordinance
3 Energy Audit Capital Improvements
For City Buildings
SECTION 6. Any act consistent with the authority and prior to the
effective date of this ordinance is hereby ratified and affirmed
SECTION 7. This ordinance shall take effect and be in force thirty
,(30) days from and after its passage as provided by law
TTEST:
CLERK
OVED AS TO F RM:
'AAA Imo(. �
BRUBAKER, CITY ATTORNEY
S day of August, 2003
6 day of August, 2003.
9 day of August, 2003
I hereby certify that this is a true copy of Ordinance No. 364__d�_
by the City Council of the City of Kent, Washington, and approved by the
of the City of Kent as hereon indicated.
W _
Eneral Aud�ImprM_yrn[yMoc+e
(SEAL)
BRENDA JACOBBM, CITY CLERK
4 Energy Audit Capital Improvements
For City Buildings
EXHIBIT A
CITY OF KENT
CONSERVATION MEASURES
RECOMMENDATIONS
A. PROJECT DESCRIPTION
The project consists of retrofit and replacement of various mechanical, controls
and lighting systems at The City of Kent.
This project addresses the need to replace faded equipment in the City Hall and
Commons, while also switching to gas heat for much of the year. Control
improvements will be performed to save energy and improve comfort in various
buildings. Lighbng systems in the majority of the City buildings will be retrofit or
replaced; saving energy and improving light levels, visibility, and color rendering
Below is a list of the measures to be installed:
1. Mechanical Systems
City Hall
Replace chillers with water-cooled chillers and cooling tower, install CO2 sensors,
rebalance HVAC system, commission
Install new boder and pre -heat coils in the air handlers
Centennial Center
Commission HVAC system
Upgrade energy management system (EMS) to graphics based system
Add barometric damper to exhaust fan, control W/C exhaust fans on EMS
Kent Commons
Add HW boder, convert FCU's to 2 -pipe system
Install CO2 sensors to control outside air for gyms and meeting areas
Add mechanical cooling to gym
Commission HVAC system, check controls for gym AHU's and chilled water
pumps
Install occupancy sensors in gym and meeting areas
City Hall Annex
Add building to EMS network
Replace air handlers with new units using outside air economizers
Install EMS controls, economizer, occupancy and CO2 sensors, commission
system
Senior Center
Commission HVAC System
Kent Historical Society Museum
Install DDC Thermostat
Commission HVAC System
Riverbend 18 -Hole Golf Course
Replace electric heat with hot water cod for FC -5
Commission HVAC System
Electrically Sub meter Restaurant area
GC -M6 Install occupancy sensors to reduce electric heat in W/C
GC -M7 Block off breezeway opening
Fire Station 071
Add door switches to EMS
Upgrade space sensors for Co -Ray -Vac systems in all stations
Fire Station #73
Add (2) two gas domestic hot water heaters (keep electric as back-up)
Fire Station #74
Add gas domestic hot water heaters (keep electric as back-up)
2. Lighting Systems
Retrofit and replace existing lighting systems - City Hall, Centennial Center,
Kent Commons, City Hall Annex, Resource Center, Senior Center, Riverbend 18 -
Hole Golf Course and Restaurant, Fire Station #71, Fire Station #72, Fire Station
#73, Fire Station #74, Fire Station #75, Fire Station #76, Corrections Budding,
Municipal Parking Lot, Police Building and Gowe Street Station
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ANNEX I
CITY OF KENT
NOTICE OF INTENT
Notice of Intent
State of Washington LOCAL(Local Option Capital Asset Lending)
Local Government Information
County Kme
Legal Name City of Kent MCAG No 0401
Contact Person Charles Lindsey Title Superintendent of Facilities
Address 220 Fourth Ave South, Kent WA 98032-5895
Phone (253) 856-5081 Fax (253) 856-6080 E-mail clindsey(alci kent wa us
Would you prefer to receive financing documents (check one) ®Already have financing documents
❑ MS Word 6 0 by e-mail ❑ 3 5" disk - Word 97 by U S mail ❑Hard copy by U S mail
Property (Real Estate or Equipment)
Property description (include quantity, if applicable) Energy Conservation - Lt ting upgrades in all Ctty
buildings. HVAC at Resource Center. Chiller & Boilers in City Hall, A/C for Kent Commons gym and reader board
sten at Kent Commons
Total cost $1,285,409 Maximum amount to finance $1,285,409
Finance term 10 years Useful life 10 years Desired financing date 9/15/03
Purpose of property (Please be specific and include dept of use) See Property Description above and Exhibit A to
Ordinance
If real estate, the Real Estate Worksheet ❑ Is attached ❑ Will be provided by (date)
If equipment, will the property purchase price be paid with ❑ program proceeds or ® general funds to be reimbursed
from program proceeds9 If general funds are to be used, include a copy of the local agency's reimbursement resolution with
the financing documents
Security Pledge
❑ Voted general obligation of local government ® Non -voted general obligation of local government
Other Information
Approximate population _ _ (not required for cities and counties)
If any of the following apply, please provide a complete discussion on a separate page
❑ Yes ® No Does the local government use cash flow borrowing (registered warrants, mterfund loans or other
cash flow borrowing)9
❑ Yes ® No Is the local government a party to significant litigation
❑ Yes ® No Is this a reimbursement? If yes, date funds spent
We are not required to submit the Credit Form because we have an existing bond rating of A or better from
Moody's and Standard & Poor's
Does local government have a bond rating? ®Yes ❑No Bond rating(s) Al
(attach rating agency letter)
By executing this Notice of Intent, the local agency acknowledges, agrees to and accepts its designation and appointment as the agent of
the nominal lessor in connection with the acquisition of the project By executing this Notice of Intent, the local agency further
acknowledges and agrees that certificate counsel and any other special counsel to the state in connection with the authorization, issuance
and delivery of the certificates and the related financing documents shall not be acting, and shall not be deemed to act, as counsel to the
local agency, nor shall any attomey-client relationship exist or be deemed to exist between such counsel and any participating local agency
in connection with such matters
Submitted b Jun )yhyA Title Mayor p
Signature Date O -6 - 0-3
ANNEX 2
CITY OF KENT
FINANCING CONTRACT
Annex 2 to Authommng Resolution (Equmpmmt)
Local Agency Financing Contract, Series 200i_3
(Equipment)
This Local Agency Financing Contract, Senn 2003 (the "Financing Contract') is entered into by and between the state of Washington (the "State"),
acting by and through the State Treasurer (the "State Treasurer"), and _the City of Kent , a city of the State (the "Local Agency")
Recitals
WHEREAS, certain State agencies (as defined in Appendix I hereto, "State Agencies") arc authorized to acquire personal property used or needed by
such State Agencies through financing contracts entered into pursuant to Chapter 356, Laws of Washington, 1989, codified as Chapter 3994 of the Revised
Code of Washington (the "RCW"), as supplemented and amended (the "Act"), and
WHEREAS, Chapter 291, Laws of Washington, 1998 supplemented and amended the Act to authorize the State to enter into financing contracts on
behalf of terrain local agencies (as defined in Appendix I hereto, "Local Agencies'), including the Local Agency, to finance the acquisition of personal
property by such Local Agencies, and
WHEREAS, the State Treasurer has established a consolidated program providing for the execution and delivery of certificates of participation in such
financing contracts, or in raster financing contracts with respect thereto, in series from lime to time in order to provide financing or refinancing for the costs
of acquisition of such personal property by State Agencies and Local Agencies, and
WHEREAS, simultaneously with the execution and delivery hereof, the State is entering into a Master Financing Contract, Series 200, dated as of
the Dated Date (the "Master Financing Contract") with the Washington Finance Officers Association, a nonprofit corporation duly organized and existing
under and by virtue of the laws of the state of Washington (the "WFOA"), to provide financing for the costs of acquisition of cenan items of personal
property by certain State Agencies and Local Agencies, including the Local Agency, under the terms set forth therein, and
WHEREAS, the State Treasurer and the Local Agency have determined that at is necessary and desirable to enter into this Financing Contract to provide
financing or refinancing for the costs of acquisition of eermn items of personal property, described in Exhibit B hereto (the "Property'), by the Local
Agency', and
WHEREAS, the State Finance Committee has authorized the execution and delivery of this Financing Contract pursuant to Resolution No 923 adopted
on July 17, 2000, and
WHEREAS, all acts, conditions and things mqumrcd by law to exist to have happened and to have been performed precedent to and in connection with
the execution and delivery of this Financing Contract do exist have happened and have been performed in regular and due time, form and manner as
required by law, and the Parties hereto arc now duly authorized to execute, deliver and perform their respective obligations underthis Financing Contract
NOW THEREFORE, in dxnsideratwn of the mutual covenants and agreements contained herein and for other valuable consideration, the Partes hereto
mutually agree as follows
Section I 1 Defined Temu Capitalized terms used but not otherwise defined in this Financing Contract shall have the respective meanings given
such terms in Appendix I hereto
Seamon 12 Noticeof intent- Personal Pron.m, Certificate,Certificate Designating Authorized Local Aeencv Remesentativg The Local Agency has
delivered a Notice of Intent m the State Treasurer in the form of Exhibit A attached hereto and incorporated herein by this reference In order to evidence its
acceptance of the Property fimnced and acquired pursuant hereto, the Local Agency has executed and delivered herewith, or will execute and deliver within
60 days from the Dated Date to the State Treasurer, a Personal Property Certificate in the form of Exhibit B attached hereto and incorporated herem by this
reference The Local Agency has delivered a Certificate Designating Authorized Agency Representatives to the State Treasurer in the form of Exhibit C
attached hereto and incorporated herem by this reference Said Certificate is currently in force and has not been amended, withdrawn or superseded, and the
signature shown thereon are true and correct originals of the signatures of the persons who hold the titles shown opposite their names The signature of any
one of the individuals shown on said Certificate is sufficient to bind the Local Agency under this Financing Contract with respect to any of the undertakings
contemplated herein The terms and provisions set forth in Appendix II hereto are incorporated heron and made a pan hereof by this reference
Section 13 Installment Sale and Purchase of Property The State hereby agrees to sell, assign and cwnvey, and does hereby sell, assign and convey to
the Local Agency, and the Local Agency hereby agrees to purchase, acquire and assume, and does hereby purchase, acquire and mum from the Stam, all
of the State's nght utle and interest in and to the Property and all proceeds and profits thereof and therefrom, subject to the =only interest mated pursuant
to Section 2.5 of Appendix 11 hereof, and the Local Agency agrees to pay in consideration thereof the Purchase Price therefor and interest thereon and the
Additional Costs in accordance with Section 14 hereof, and all other amounts required to be paid by the Local Agency hereunder, all in accordance with the
provisions of this Financing Contras.
Section 14 Amcv Installment Pavrmierag. In consideration of the sale of the Property and the covenants and agreements of the State in this
Financing Contract, the Local Agency hereby promises to pay to the State the following amounts at the following times (a) On each Agency Installment
Payment Dam, the Agency Installment Payment set forth in Exhibit D hereto, consisting of a Principal Component and/or an Interest Component u set forth
in such Exhibit and (b) All Additional Costs incurred by the State in connection with the sale of the Property to the Local Agency, the execution and
delivery of the Certificates, and the observance and performance of the Sines 200_L Agreements, within thirty (30) days following receipt of an invoice
from the State with respect thereto which includes (s) a brief description of each such Additional Cost Oq the party to whom payment is due, (nm) the amount
thereof, and (iv) such additional information as the Local Agency may reasonably request.
Section 15 TMU This Local Agency Financing Contract shall terminate on the date on which all amou# due hereunder shall have been paid or the
payment thereof duly provided for pursuant to Section 4 1 of Appendix 11 hemk)
STATE OF WASHINGTON _
OFFICE OF THE STATE TREASURER as
By
Designated State Treasurer Representative
By
12
Notice of Intent
State of Washington LOCAL(Local Option Capital Asset Lending) -------
1 Tt
--_-"-ibit A to
Local Government Information Finam ing Contract
County. King_
Legal Name. City of Kent MCAG No. 0401
Contact Person: Charles Lindsey Title Suvenntendent of Facilities
Address- 220 Fourth Ave South, Kent WA 98032-5895
Phone (253) 856-5081 Fax- (253) 856-6080 E-mail clmdsevOci kent wa us
Would you prefer to receive financing documents (check one) ®Already have financing documents
❑ MS Word 6 0 by e-mail ❑ 3.5" disk— Word 97 by U.S mad ❑Hard copy by U S mail
Property (Real Estate or Equipment)
Property description (include quantity, if applicable). Env Conservation - Lighting upgrades in all City
buildings HVAC at Resource Center, Chiller & Boilers in City Hall, A/C for Kent Commons gym and reader board
sign at Kent Commons
Total cost. $1,285,409 Maximum amount to finance. $1,285,409
Finance term: 10 years Useful life- 10 years Desired financing date 9/15/03
Purpose of property (Please be specific and include dept. of use) See Property Description above and Exhibit A to
Ordinance
If real estate, the Real Estate Worksheet ❑ Is attached ❑ Will be provided by (date)
If equipment, will the property purchase price be paid with ❑ program proceeds or ® general funds to be reimbursed
from program proceeds? If general funds are to be used, include a copy of the local agency's reimbursement resolution with
the financing documents
Security Pledge
❑ Voted general obligation of local government.® Non -voted general obligation of local government
Other Information
Approximate population _ _ (not required for cities and counties)
If any of the following apply, please provide a complete discussion on a separate page
❑ Yes ® No Does the local government use cash flow borrowing (registered warrants, mterfund loans or other
cash flow botrowmg)9
❑ Yes ® No Is the local govemment a party to significant litigation?
❑ Yes ® No Is this a reimbursement9 If yes, date funds spent
We are not required to submit the Credit Form because we have an existing bond rating of A or better from
Moody's and Standard & Poor's
Does local government have a bond rating? ®Yes ❑No Bond rating(s) Al
(attach rating agency letter)
By executing this Notice of Intent, the local agency acknowledges, agrees to and accepts its designation and appointment as the agent of
the nominal lessor in connection with the acquisition of the project By executing this Notice of Intent, the local agency further
acknowledges and agrees that certificate counsel and any other special counsel to the state in connection with the authorization, issuance
and delivery of the certificates and the related financing documents shall not be acting, and shall not be deemed to act, as counsel to the
local agency, nor shall any attorney-client relationship exist or be deemed to exist between such counsel and any participating local agency
in connection with such matters
M9JMMJ1MWQ FAdr Title Mayor
i
////��.Date
Personal Property Certificate
Name of Local Agency Cary of Kent
Address 220 Fourth Avenue South
Kent, WA 98032-5895
Exhibit B to Financing Contract (Equipment)
All capitalized terns not defined herein shall have the meanings assigned to such terns in she Financing Contract that this Exhibit B is attached
to The undersigned, [NamrRrtle] _Jim White, Mayor_ dues iinieby certify, riot [he/shel is an Authorized Agency Representauve of _the City of
Kent_ (the "Local Agency") pursuant to the terns of the Financing Contract
The undersigned, confirms that the Property described below will be placed in use at the location Lsted below The undersigned confirms that the
Property described below has been delivered to and received by the Local Agency All installation or other work necessary prior to the use thereof has been
completed The Property has been exarmned and/or tested and is in good operating order and condition and is in all respects satisfactory to the Local Agency
and complies with all terms of she Master Financing Contract and the Financing Contract
Notwithstanding the foregoing, the undersigned does not waive or limit by execution of this cernficate, any claim against the vendor or any other
seller, installer, contractor or other provider of property or services related to the purchase, shipment, delivery, installation or mamtenaras of the Property
The Local Agency further wrifams that the Property will be used to fulfill an essential governmental function which the Inial Agency has the
authority to provide in the State
tttttilitittitltilttttttittiititttttttttititttttliii
PROPERTY INFORMATION
Quantum Engineering $
Description Same as Annex 1 Notice of Intent Name of Vendor
Development
Senal No N/A
Tag No N/A
Location of Property
Acquisition:
Attached hereto are
Address
Payment Amount,
Disburse to
Method of Payment
A vendor's mvmce for the Property approved by the Local Agency
A Certificate of Insurance, demonslratmg liability insurance coverage and stating that insurance will be renewed annually automatically, unless
said office notifies the State Treasurer of any discontinuation of coverage
In connection with the local Agency's acquisition of the Property as agent of the Washington f
make a disbursement as indicated above
Countersigned and
Approved for Payment
Designated State Treasurer Representative
Date
11
equested to
Annex 3 to Authorizing Resolution (Equipment)
Annex / to Authorizing Resoluuon (Real Property)
Exhibit C to Financing Contract (Equipment)
Exhibit B to Financing Contract (Real Property)
Certificate Designating Authorized Agency Representatives
I, Brenda Jacober , _City Clerk_of the City of Kent (the "Local Agency"), hereby certify that, as of the date
hereof, pursuant to Resolution No. /Ordmance No. , the following individuals are each an "Authorized
Agency Representative," as indicated by the title appended to each signature, that the following individuals are duly
authorized to execute and deliver the Financing Contract to which this Certificate is attached as Exhibit C, and all
documentation in connection therewith, including but not limited to the Personal Property Certificate(s) attached thereto as
Exhibit B, that the signatures set forth below are the true and genuine signatures of said Authorized Agency Representatives
and that pursuant to such resolution/ordinance, of the following signature(s) [is/are] required on each of
the aforementioned documents in order to consider su uments executed on behalf of the Local Agency.
im White Mayor
(name) (title)
(signature) (name) (title)
(signature) (name) (title)
Dated this 1 day ofay� 2
�GLGd—e:�e�/✓
City Clerk[ e]
City of Kent[Name of Local Agency]
SUBSCRIBED AND SWORN TO before me this
10
JBLIC in and for the State of
residing at -
My Commission Expires / y -6cl
ANNEX 3
CITY OF KENT
AUTHORIZED AGENCY
REPRESENTATIVES
Annex 3 to Authonzmg Rmlition (Equipment)
Amex 4 to Authonzmg Rewhiton (Real Properly)
Exhibit C to Financing Contact (Equipment)
Exhibit B to Financing Conan (Real Property)
Certificate Designating Authorized Agency Representatives
I, Brenda Jacober ,City Clerk of the City of Kent (the "Local Agency'l, hereby certify that, as of the date
hereof, pursuant to Resolution No. /Ordinance No. _ _ , the following individuals are each an "Authorized
Agency Representative," as indicated by the tide appended to each signature, that the following individuals are duly
authorized to execute and deliver the Financing Contract to which this Certificate is attached as Exhibit C, and all
documentation in connection therewith, including but not limited to the Personal Property Certificate(s) attached thereto as
Exhibit B, that the signatures set forth below are the true and genuine signatures of said Authorized Agency Representatives
and that pursuant to such resoludon/ordinance, of the following signature(s) [is/are) required on each of
the aforementioned documents mArder to consider such 4pepments executed on behalf of the Local Agency
(name) (title)
(signature) (name) (title)
(signature) (name) (title)
Dated this day44-P06-9
a
aQ
City Clerk[ e]
/ City ofKent[NameofLocal Agency]
SUBSCRIBED AND SWORN TO before me this G69- dayA(��, 20 O�3 n
�eti�,9su St+k��'."
to %� Py Rot ; a
hgiWeui,�i`
In
My Commission
in fond for the Slate of
at.
/-�I- -/ -01/
Certificate Of Authorizing Resolution/Ordinance
I, the undersigned, Clerk/Secretary of theCity of Kent (the "Local Agency"), DO HEREBY CERTIFY:
1. That the attached Resolunon/Ordmance No. �, (herem called the "Resolution/Ordinance') is a true and
correct copy of a Resolution/Ordinance of the Local Agency adopted/passed at a regular/special meeting of the Kent G
Council held on the 5 day of August , 20_9L, and duly recorded in my office,
That said meeting was duly convened and held in all respects in accordance with law, and to the extent
required by law, due and proper notice of such meeting was given, that a quorum of the Kent City Council was present
throughout the meeting and a legally sufficient number of members of the Kent City Council voted in the proper manner
for the adoption/passage of the Resolution/Ordmance;
3. That all other requirements and proceedings incident to the proper adoption/passage of the
Resolution/Ordinance have been duly fulfilled, carried out and otherwise observed;
4. That the Resolution/Ordinance remains in full force and effect and has not been amended, repealed or
superseded; and
5 That I am authorized to execute this certificate
IN WITNESS WHEREOF, I have hereunto set my hand as of this day of
200-3
(SEAL]
l y1 ••• ••r•: yA
Awa
"Ac\
Local Agency Tax Certificate
This Local Agency Tax Certificate is executed and delivered by the City of Kent (the "Local
Agency") in connection with the Local Agency Financing Contract between the Local Agency and the
State of Washington (the "State"), dated as of , 200 , (the "Local Agency Financing
Contract"), under which the Local Agency is obligated to make Agency Installment Payments, including
principal components thereof in the aggregate amount of $__51185 .409 (the "Obligations').
Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Local
Agency Financing Contract. The Local Agency certifies, covenants, warrants and represents as follows:
ARTICLE L IN GENERAL
I.1 The Local Agency. The Local Agency is a political subdivision duly organized
and existing under and by virtue of the laws of the State of Washington. The Local Agency has the
general authority to exercise the power of eminent domain in furtherance of its governmental purposes.
1.2 Purpose of Local Agency Tax Certificate. In the future, the State intends to
cause the execution and delivery of certificates of participation (the "Certificates") evidencing
undivided and proportionate interests in Installment Payments of the State payable under a Master
Financing Agreement. A portion of the principal components of such Installment Payments are payable
from the Obligations. The Local Agency is delivering this Local Agency Tax Certificate to the State
with the understanding that the State will rely in part upon this Local Agency Tax Certificate in
obtaining an opinion from bond counsel that the interest component of the Certificates is excluded from
gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986.
1.3 Purpose of Financing. The Obligations are being issued to finance the costs of
the acquisition, construction, improvement and/or renovation of _vanous mechanical, controls and
lighting systems at the City of Kent_ (the "Project"), as described in more detail in the Financing
Contract.
1.4 Definitions. Unless the context otherwise requires, the following capitalized
terms have the following meanings:
"Code" means the Internal Revenue Code of 1986 (including amendments thereto).
"Current Revenues. " See Section 2.7 hereof.
"Governmental Unit" means any state, or political subdivision of a state, but excludes the
United States and its agencies or instrumentalities.
"Investment Property" means any security or obligation, any annuity contract, or any
other investment -type property, but does not include any Tax -Exempt Bond unless such
obligation is a "specified private activity bond" within the meaning of Section 57(a)(5XC) of the
Code.
"Nongovernmental Person" means any person or entity other than a Governmental Unit.
"Preliminary Expenditures" means architectural, engineering, surveying, soil testing, and
similar costs paid with respect to the Project in an aggregate amount not exceeding 20% of the
Obligations. however, Preliminary Expenditures do not include land acquisition, site preparation
or similar costs incident to the commencement of construction.
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"Tax -Exempt Bond' means any obligation the interest on which is excluded from gross
income for federal income tax purposes pursuant to Section 103 of the Code or Section 103 of
the Internal Revenue Code of 1954, as amended (the "1954 Code"), and Title XIII of the Tax
Reform Act of 1986, as amended, as well as stock in a regulated investment company to the
extent at least 95 percent of income to the stockholder is treated as interest that is excludable
from gross income under Section 103 of the Code.
ARTICLE II. TAX LIMITATIONS
2.1 Expenditure of Proceeds. For purposes of this Local Agency Tax Certificate,
proceeds of the Obligation will be treated as spent when they are used to pay for or reimburse
disbursements by the Local Agency that paid for (i) capital expenditures, (ii) any interest component of
the Agency Installment Payments through the later of three years after the date hereof or one year after
the Project is placed in service, or (iii) initial operating expenses directly associated with the Project (in
aggregate amount not exceeding 5% of the Obligations). The State has authorized the issuance of the
Certificates to finance, among other things, the costs of the Project. Absent written agreement by the
State, all expenditures of proceeds of the Obligation will be made in respect of (a) Preliminary
Expenditures, (b) capital expenditures reimbursed in respect of payments made by the Local Agency on
or after the date which is sixty days prior to the date on which said authorization was adopted, or (c)
other payments made by the Local Agency on or after the date hereof. In connection with all
expenditures described in (b), the reimbursement allocation will be made no later than the later of 18
months after the date hereof or the date on which the Project is placed in service, but in no event later
than three years after the date of expenditure.
2.2 Governmental Bond Status. [Different text will be substituted for this section
when the loan is made for airport or port facilities that are the subject of private use.] The Local Agency
will not loan any of the proceeds of the Obligations to one or more Nongovernmental Persons. The
Local Agency will not allow more than 10% of proceeds of the Obligations or more than 10% of the
Project to be used directly or indirectly by any Nongovernmental Person, other than as a member of the
general public. A Nongovernmental Person will be treated as "using" proceeds of the Obligations to the
extent the Nongovernmental Person:
(i) borrows proceeds of the Obligations, or
(ii) uses the Projecte(_ g., as owner, lessee, service provider, operator or manager).
2.3 Change in Use. The Local Agency reasonably expects to use all proceeds of the
Obligations and all of the Project as set forth in Section 2.2 of this Local Agency Tax Certificate for the
entire stated term to maturity of the Obligations. Absent written agreement by the State, the Local
Agency in fact will use all proceeds of the Obligations and all of the Project as set forth in Section 2.2 of
this Tax Certificate.
2.4 Federal Guarantee. The Local Agency will not directly or indirectly use or
permit the use of any proceeds of the Obligations or take or omit to take any action that would cause the
Certificates to be obligations that are "federally guaranteed" within the meaning of Section 149(b) of the
Code. In furtherance of this covenant, the Local Agency will not allow the payment of principal or
interest with respect to the Obligations to be guaranteed (directly or indirectly) in whole or in part by the
United States or any agency or instrumentality thereof. The Local Agency will not use 5% or more of
the proceeds of the Obligations to make or finance loans the payment of principal or interest with
respect to which is guaranteed in whole or in part by the United States or any agency or instrumentality
thereof.
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2.5 No Refunding. Proceeds of the Obligations will not be used directly or indirectly to
make principal, interest or premium payments with respect to any obligation other than the Obligations,
2.6 No Hedge Bonds. The Local Agency reasonably expects that more than 85% of
proceeds of the Obligations will be expended for the purposes of the Obligations within three years.
2.7 Debt Service Funds. Payments of debt service on the Obligations generally are
expected to be derived from current revenues of the Local Agency in each year, and Current revenues
are expected to equal or exceed debt service on the Obligations during each payment period Revenues
actually used in less than six months from the date first received to pay debt service on Obligations are
referred to herein as "Current Revenues." The account, or portion thereof, used by the Local Agency to
pay debt service on the Obligations will be used primarily to achieve a proper matching of revenues and
debt service within each year. To the extent of Current Revenues, such account in the aggregate will be
depleted at least once a year except for a carryover amount not to exceed the greater of the earnings on
such account for the immediately preceding year or 1/12 of the debt service in respect of the Obligations
for the immediately preceding year. Current Revenues contributed to such account will be spent within
thirteen months after the date of such contribution, and any amounts received from the investment or
reinvestment of monies held in such funds will be expended within one year after the date of
accumulation thereof in any such fund. Current Revenues in such account shall be invested without
regard to yield. Revenues other than Current Revenues will not be invested in Investment Property with
a yield exceeding the yield on the Obligations.
2.8 No Other Replacement Proceeds. The Local Agency will not use any proceeds
of the Obligations directly or indirectly to replace funds of the Local Agency which are or will be used
directly or indirectly to acquire Investment Property reasonably expected to produce a yield that is
materially higher than the yield on the Obligations. The weighted average maturity of the Obligations
does not exceed 120% of the expected weighted average economic useful life of the Project
2.9 No Expected Sale It is not expected that the Project or any part thereof will be
sold or otherwise disposed of before the maturity date of the Obligations.
ARTICLE III. OTHER MATTERS
3.1 Expectations. The undersigned is an authorized representative of the Local
Agency acting for and on behalf of the Local Agency in executing this Local Agency Tax Certificate.
To the best of the knowledge and belief of the undersigned, there are no other facts, estimates or
circumstances that would materially change the expectations as set forth herein, and said expectations
are reasonable.
3.2 Amendments. Notwithstanding any other provision of this Local Agency Tax
Certificate, the Local Agency may amend this Local Agency Tax Certificate and thereby alter any
actions allowed or required by this Local Agency Tax Certificate if such amendment is signed by an
authorized officer and is supported by formal written agreement by the State.
3.3 Survival of Defeasance. Notwithstanding any provision in this Local Agency
Tax Certificate to the contrary, the obligation to comply with all requirements contained in this Local
Agency Tax Certificate shall survive defeasance or prepayment of the Obligations.
Dated: , 200
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LOCAL Program
Supplemental Credit Request Relating to Initiative 747
Please provide complete discussion and supporting documentation (if applicable) for the following. It
is important that all questions be answered completely and accurately.
1. Has the agency analyzed the budget impacts of Initiative 747?
(a) If no, why not?
(b) If yes, please discuss the results of the analysis, including steps being taken to address any potential
impacts. Please attach documentation that was prepared for the analysis, if helpful.
2. What was the agency's unrestricted Fund Balance at the agency's most recent fiscal year end?
3 What is the agency's expected unrestricted Fund Balance at the next upcoming fiscal year end?
4. To what extent is the agency planning to reduce Fund Balance to meet shortfalls that may result due to
implementation of Initiative 747? What minimum Fund Balance is the agency willing to maintain?
18
Incumbency Certificate
I, Brenda Jacober, City Clerk of the Cr
ty of that the
following is a true and correct listing of the City Washington, do hereby cern
and their terms of office: City
Council members of the City of of,
Judy Woods
Leona Orr
Tim CIark
Rico Yingling
Connie Epperly
Julie Peterson
Bruce White
January 1, 2000 through December 31, 2003
January 1, 2000 through December 31, 2003
January 1, 2002 through December 31, 2005
January 1, 2000 through December 31, 2003
January 1, 2000 through December 31, 2003
January 1, 2002 through December 31, 2005
January 1, 2002 through December 31 2005
,
Dated this a ,
aZ 00 3
Brenda Jacober, City Clerk