ORD 10-647ORDINANCE NO. 10-647
AN ORDINANCE of the City of Federal Way, 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 and approving certain matters related
thereto.
WHEREAS, pursuant to Ordinance No. 00-369 adopted by the City of Federal Way (the
"City") on April 18, 2000 and Chapter 39.34 RCW, the Interlocal Cooperation Act, the City entered
into the Valley Communications Center Interlocal Agreement, effective April 17, 2000 (the
"Interlocal Agreement"), with the Cities of Renton, Auburn, Tukwila and Kent, Washington
(together, the "Member Cities"), to reorganize a governmental administrative agency known as the
Valley Communications Center ("Va1leyCom"); and
WHEREAS, 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 the Member Cities, together with such other governmental agencies that have
contracted with Va1leyCom for communication services; and
WHEREAS, in order to address increased growth and to provide necessary services for the
Member Cities and other governmental agencies that contract with Va1leyCom for communication
services, ValleyCom constructed a new dispatch facility known as the Valley Communications
Center (the "Facility"); and
WHEREAS, financing for the construction, equipping, and improvement of the Facility was
provided by bonds issued by the Valley Communications Center Development Authority (the
"Authorit}�'), a public development authority chartered by the City of Kent pursuant to RCW
35.21.730 through 35.21.755; and
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WHEREAS, 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
(20%) of the total cost of development, less contributions from grants, other agencies, or other
sources; and
WHEREAS, the Authority issued its Valley Communications Center Development �uthority
Bonds, 2000 (Valley Communications Center Project in King County, Washington) (the "2000
Bonds"), dated September 15, 2000, in the original aggregate principal amount of $12,758,000; and
WHEREAS, 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 FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Citv Contributions 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 (20%),
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 20% 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 20% 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 20% allocable share shall be an inevocable full faith and credit obligation of the
Ordinance No.10-b47 Page 2 of S
City, payable from property 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 therefore. The City hereby obligates itself and commits to budget for
and pay its 20% 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 20%
allocable share for so long as any Bonds remain outstanding.
Section 2. Compliance with Continuing Disclosure RecLuirements and Official Statement.
To the extent necessary to meet the conditions of paragraph (d)(2) of United States Securities and
Exchange Commission Rule 15c2-12 (the "Rule"), the City Manager is hereby authorized to execute
and deliver a continuing disclosure agreement or certificate in order to assist the underwriter for the
Bonds in complying with the Rule. The City Manager is further authorized to ratify and approve the
information pertaining to the City and contained the preliminary and final official statements
delivered in connection with the Bonds for purposes of the Rule.
Section 3. Allocation for Puiposes 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. T� 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
Ordinance No.10-647 . Page 3 of S
described in Section 103(a) of the Code.
Section 5. General Authorization. The City Manager 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.
Section 6. Severabilitv. Should any section, subsection, paragraph, sentence, clause, or
phrase of this chapter, or its application to any person or situation, be declared unconstitutional or
invalid for any reason, such decision shall not affect the validity of the remaining portions of this
chapter or its application to any other person or situation. The City Council of the City of Federal
Way hereby declares that it would have adopted this chapter and each section, subsection, sentence,
clauses, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections,
sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
Section 7. Corrections. The City Clerk and the codifiers of this ordinance are authorized to
make necessary corrections to this ordinance including, but not limited to, the correction of
scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any
references thereto.
Section 8. Ratification. Any act consistent with the authority and prior to the effective date
of this ordinance is hereby ratified and affirmed.
Section 9. Effective Date. This ordinance shall take effect and be in force thirty (30) days
from and after its passage and publication, as provided by law.
Ordinance No.10-647 Page 4 of 5
PASSED by the City Council of the City of Federal Way this 2 day of March, 2010.
CITY OF FEDERAL WAY
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MA OR, LINDA K CHMAR
ATTEST:
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APPROVED AS TO FORM:
CITY ATTORNEY, PATRICIA A. RICHARDSON
FILED WITH THE CITY CLERK: 2-9-2010
PASSED BY THE CITY COUNCII,: 3-2-2010
PUBLISHED: 3-6-2010
EFFECTNE DATE: 4-5-2010
ORDINANCE NO.: 10-647
Ordinance No.10-647 Page S of S