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Home My WebLink About3946'RDTNAN.E No. 37'lL AN ORDINANCE of the City Council of the City of Kent, Washington, pledging the City's full faith and credit toward the payment of its share of debt service on refunding bonds to be issued by the Valley Communications Center Development Authority, approving certain related matters, and authorizing the City's Mayor and Finance Director, and all other appropriate officers, agents, and representatives, to take all other acts necessary to issue the refunding bonds and carry out the transactions authorized by this ordinance. RECITALS A. Pursuant to Council motion adopted by the City of Kent on March 2L,2000, and chapter 39.34 RCW, the Interlocal Cooperation Act, the City entered into the Valley Communications Center Interlocal Agreement, effective April L7, 2000 (the "Interlocal Agreement"), with the City of Federal Way, the City of Renton, the City of Auburn, and the City of Tukwila, Washington (together, the "Member Cities"), to reorganize a governmental administrative agency known as the Valley Communications Center ("ValleyCom"). The purpose of ValleyCom is to provide improved police, fire, and medical aid service communications within the boundaries of the existing, established consolidated service area at a minimum cost to t Valley Communications Center- Pledge Full Faith & Credit Toward Refunding Bonds & Authorize Acts the Member Cities, together with such other governmental agencies that have contracted with ValleyCom for communication services. B. In order to address increased growth and to provide necessary services for the Member Cities and other governmental agencies that contract with ValleyCom for communication services, ValleyCom constructed a new dispatch facility known as the Valley Communications Center (the "Facility"). Financing for the construction, equipping, and improvement of the Facility was provided by bonds issued by the Valley Communications Center Development Authority (the "Authority"), a public development authority chartered by the City of Kent pursuant to RCW 35.2L.730 through 35.2L.755. C. Pursuant to the Interlocal Agreement, each Member City has agreed to contribute to the financing of the costs of the Facility, each Member City paying twenty-percent (2)o/o) of the total cost of development, less contributions from grants, other agencies, or other sources. The Authority issued its Valley Communications Center Development Authority Bonds, 2000 (Valley Communications Center Project in King County, Washington) (the *2000 Bonds"), dated September 15, 2000, in the original aggregate principal amount of $L2,758,000. It appears that the 2000 Bonds may now be refunded at lower interest rates through the issuance of refunding bonds of the Authority, thereby yielding savings to the Authority and the Member Cities. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: 2 Valley Communications Center- Pledge Full Faith & Credit Toward Refunding Bonds & Authorize Acts ORDINANCE SECTION 7, - City Contríbutions to Bonds. Pursuant to the terms of the Interlocal Agreement, the City hereby irrevocably commits to pay its share, which shall be equal to twenty-percent (2oo/o), of the debt service on bonds (the "Bonds") issued by the Authority for the purpose of defeasing and refunding all or a portion of the 2000 Bonds. The City recognizes that it is not obligated to pay the share of any other Member City; the City's obligation shall be limited to its 2Oo/o allocable share of debt service on such Bonds; all such payments shall be made by the City without regard to the payment or lack thereof by any other jurisdiction; and the City shall be obligated to budget for and pay its 20olo allocable share. All payments with respect to the Bonds shall be made to ValleyCom in its capacity as administrator and servicer of the Bonds to be issued by the Authority. The City's obligation to pay its 20olo allocable share shall be an irrevocable full faith and credit obligation of the City, payable from propefty taxes levied within the constitutional and statutory authority provided without a vote of the electors of the City on all of the taxable property within the City and other sources of revenues available therefor. The City hereby obligates itself and commits to budget for and pay its 20olo allocable share and to set aside and include in its calculation of outstanding nonvoted general obligation indebtedness an amount equal to the principal component of its 20o/o allocable share for so long as any Bonds remain outsta nding. SECTION 2. - Compliance with Continuing Disclosure Requirements and Official Statement. To the extent necessary to meet the conditions of paragraph (dX2) of United States Securities and Exchange Commission Rule 15c2-12 (the "Rule"), the Mayor is hereby authorized to execute and deliver a continuing disclosure agreement or certificate in order to assist Va I ley Com mu n ications Center- Pledge Full Faith & Credit Toward Refunding Bonds & Authorize Acts 3 the underwriter for the Bonds in complying with the Rule. The Mayor is further authorized to ratify and approve the information pertaining to the Cíty and contained the preliminary and final official statements delivered in connection with the Bonds for purposes of the Rule. SECTION 3, - Allocation for Purposes of Bank Qualification For purposes of Section 265(b)(3)(C)(iii) of the Internal Revenue Code of 1986, as amended (the "Code"), the City hereby agrees that the amount of each issue of obligations of the Authority shall be allocated in equal shares among each of the Member Cities. SECTION 4, - Tax Covenant The City hereby agrees that it shall not (a) make any use of the proceeds from the sale of Bonds or any other money or obligations of the Authority or the Member Cities that may be deemed to be proceeds of the Bonds pursuant to Section 148(a) of the Code that will cause the Bonds to be "arbitrage bonds" within the meaning of said Section and said regulations, or (b) act or fail to act in a manner that will cause the Bonds to be considered obligations not described in Section 103(a) of the Code. SECTION 5, - General Authorization; Prior Acts. The Mayor and Finance Director of the City and each of the other appropriate officers, agents, and representatives of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to execute such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable to carry out the terms and provisions of, and complete the transactions contemplated by, this ordinance. Va I ley Com m u n ications Center- Pledge Full Faith & Credit Toward Refunding Bonds & Authorize Acts 4 SECTION 6, - Ratification. Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. SECTION 7, Severability. If any one or more section, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 8. - Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection num bering. SECTION 9. - Effective Date. This ordinance shall take effect and be in force five (5) days from and after its ublication as provided by law OKE, MAYO ATTEST: BRENDA JACOBER,CLERK APPROVED AS TO FORM: 5 Valley Communications Center- Pledge Full Faith & Credit Toward Refunding Bonds & Authorize Acts TOM BRUBAKER, CITY EY PASSED | / L day of February, 2010. APPROVEo: /Ç day of February, 2010. PUBLISHE a: N day of February, 2010. I hereby certify that this is a true copy of Ordinance No. 3?f b passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as hereon indicated. SEAL) BRENDA JAC CITY CLERK P: \Clvll\Ordlnancevalleycommunicationscenter-20l0RefundlngBonds.doc 6 Valley Communications Center- Pledge Full Faith & Credit Toward Refunding Bonds & Authorize Acts