Ord 89-002
ORDINANCE NO. 89-2
AN ORDINANCE OF THE CITY COUNCIL OF FEDERAL
WAY APPROVING A LOAN AGREEMENT WITH THE
STATE OF WASHINGTON.
WHEREAS, the State of Washington has agreed to loan $50,000
to the City of Federal Way; and
WHEREAS, the City Council has determined that it is in the
best interests of the citizens of the City that the City accept
the loan from the State of Washington;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON DO ORDAIN AS FOLLOWS:
The City Council hereby agrees to borrow $50,000 from the
State of Washington at 0% interest to be repaid no later than
October 31, 1990, upon the terms and subject to the conditions set
forth in the loan agreement that is attached to this ordinance and
incorporated herein by reference. The Mayor is hereby authorized
and directed to execute the loan agreement.
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All actions previously taken by the City's officials and
agents in connection with the State loan are hereby ratified and
approyed.
This ordinance shall become effective from and after its
passage and publication as required by law on the date of
incorporation of the City.
Passed by the City Council of the City of Federal Way at a
regular meeting held this 31st day of October, 1989.
FEDERAL WAY, WASHINGTON
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STATE OF WASHINGTON
DEPARTMENT OF COMMUNITY DEVELOPMENT
INTERGOVERNMENTAL LOAN AGREEMENT
This LOAN AGREEMENT, entered into by and between the city of Federal
Way (hereinafter referred to as the CITY), and the Washington state
Department of Community Development (hereinafter referred to as the
DEPARTMENT), WITNESSES THAT:
WHEREAS, the DEPARTMENT has the statutory responsibility under
RCW 43.63A.065 to cooperate with and provide assistance to the
cities, counties, municipal corporations, governmental
conferences, and regional planning commissions serving the
communities of the state of Washington; and
WHEREAS, the CITY intends to form a municipal corporation
created pursuant to chapter 35.02 RCW; and
WHEREAS, the DEPARTMENT recognizes the financial liabilities
incurred by the CITY prior to incorporation, and also
recognizes that the CITY will not begin receiving its full
share of revenue distributions until several months following
incorporation; and
WHEREAS, the DEPARTMENT desires to enter into this AGREEMENT
with the CITY to provide the CITY with start-up funds, subject
to the terms and provisions as hereinafter agreed upon by both
parties. .
NOW, THEREFORE, in consideration of covenants, conditions,
performances, and promises hereinafter contained, the parties
hereto agree as follows:
1.
AMOUNT AND TERM OF LOAN
a)
The total funds to be loaned to the CITY under this
AGREEMENT shall not exceed fifty-thousand dollars
($50,000), at zero (-0-) interest.
The CITY reserves the right to establish the rate of
repaYment under this AGREEMENT, provided that full
repaYment is completed not later than October 31, 1990.
RepaYment shall be made by check, money order, or other
equivalent means to the following address:
b)
Department of Community Development
Administrative Services Division
9th and Columbia Building
Mail stop GH-51
OlYmpia, Washington 98504-4151
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CI¡Y OF FEDERAL WAY
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2.
PURPOSE
Funds awarded under this AGREEMENT shall be used by the CITY
solely for municipal start-up expenses associated with their
upcoming incorporation.
3.
AGREEMENT PERIOD
The effective date of this AGREEMENT shall be upon the date of
the last signature of the parties hereto. The termination
date of the AGREEMENT shall be December 15, 1990.
4.
DISBURSEMENT OF LOAN PROCEEDS
Disbursement of loan proceeds shall be at the rate requested
by the CITY, and may consist of either reimburseable or
advance costs. The CITY shall submit to the DEPARTMENT a
Washington State Invoice Voucher (Form A-19) when requesting
funds available under this AGREEMENT. within twenty (20) days
after receiving the voucher, the DEPARTMENT shall remit to the
CITY a warrant for the amount requested.
5.
INTEREST EARNED ON LOAN FUNDS
a)
Interest earned on funds loaned to the CITY under this
AGREEMENT shall accrue to the benefit of the CITY,
proyided that such interest earned is expended in
furtherance of Section 2. herein, and in a manner
consistent with the terms and provisions of tpis
AGREEMENT.
b)
Interest earned on funds loaned to the CITY, and expended
by the CITY in accordance with the terms and provisions
of this AGREEMENT, are not subject to repayment.
c)
The CITY shall maintain generally accepted accounting
principles to ensure that any and all interest earned
from the funds made available under this AGREEMENT can be
readily identified and accounted for in an audit.
DEFAULT IN REPAYMENT
6.
Repayment not received within thirty (30) days of the due date
described in section 1 herein shall be declared delinquent,
and subject to a penalty of twelve (12) percent interest per
annum on any unpaid balance. Upon such default, the
DEPARTMENT reserves the right to declare the unpaid balance of
the loan, together with interest penalties accrued,
immediately due and payable. The CITY shall pay the costs of
reasonable attorney's fees incurred by the DEPARTMENT in any
action undertaken to enforce its rights under this section.
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7.
EVALUATION AND MONITORING
a)
b)
8.
9.
10.
Commencing monthly after the effective date of this
AGREEMENT, the CITY shall file a brief report with the
DEPARTMENT indicating how the loan proceeds have been
utilized to achieve the objectives of this AGREEMENT.
The CITY shall cooperate with and freely participate in
any other monitoring or evaluation activities conducted
by the DEPARTMENT that are pertinent to the intent of
this AGREEMENT.
The DEPARTMENT or the state Auditor and any of their
representatives shall have full access to and the right
to examine during normal business hours and a~ often as
the DEPARTMENT or the state Auditor may deem necessary,
all the CITY'S records with respect to all matters
covered in this AGREEMENT. Such representatives shall be
permitted to audit, examine, and make excerpts or
transcripts from such records and to make audits of all
contracts, inyoices, materials, payrolls, and records of
matters covered by this AGREEMENT. Such rights last for
three years from the date final payment is made
hereunder.
EMPLOYMENT PROVISIONS
There shall be no discrimination against any employee who is
paid by the funds indicated in the AGREEMENT or against any
applicant for such employment because of race, religion,
color, sex, age, or national origin. This provision shall
include, but not be limited to the following: employment,
upgrading, demotion, transfer, recruitment, advertising,
lay-off or termination, rates of payor other forms of
compensation, and selection for training.
AGREEMENT MODIFICATIONS
The DEPARTMENT and the CITY may, from time to time, request
changes in services to be performed with the funds. Any such
changes that are mutually agreed upon by the DEPARTMENT and
the CITY shall be incorporateQ herein by written amendment to
this AGREEMENT. It is mutually agreed and understood that no
alteration or variation of the terms of this AGREEMENT shall
be valid unless made in writing and signed by the parties
hereto, and that any oral understanding or agreements not
incorporated herein, shall not be binding.
TERMINATION OF AGREEMENT
a)
If, through any cause, the CITY shall fàil to fulfill in
a timely and proper manner its obligations under this
AGREEMENT or if the CITY shall violate any of its
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b)
11.
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covenants, agreements or stipulations of this AGREEMENT,
the DEPARTMENT shall thereupon have the right to
terminate this AGREEMENT and withhold the remaining
allocation if such default or violation is not corrected
within twenty (20) days after submitting written notice
to the CITY describing such default or violation.
Notwithstanding any provisions of this AGREEMENT, either
party may terminate this AGREEMENT by providing written
notice of such termination, specifying the effective date
thereof, at least thirty (30) days prior to such date.
Reimbursement for services performed by the CITY, and not
otherwise paid for by the DEPARTMENT prior to the
effective date of such termination, shall be as the
DEPARTMENT reasonably determines.
SPECIAL PROVISION
The DEPARTMENT's failure to insist upon the strict performance
of any provision of this AGREEMENT 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 AGREEMENT.
12.
HOLD HARMLESS
b)
a)
It is understood and agreed that this AGREEMENT is solely
for the benefit of the parties hereto and gives no right
to any other party. No joint venture or partnership is
formed as a result of this AGREEMENT. Each party hereto
agrees to be responsible and assume liability for its own
non-performance acts or omissions, or those of its
officers, agents, or employees to the fullest extent
required by law, and agrees to save, indemnify, defend,
and hold the other party harmless from any such
liability.
This indemnification clause shall also apply to any and
all causes of action arising out of the performance of
work activities under this AGREEMENT. Each contract for
services or activities utilizing funds provided in whole
or in part by this AGREEMENT shall include a provision
that the DEPARTMENT and the state of Washington are not
liable for damages or claims from damages arising from
any subcontractor's performance or activities under the
terms of the contracts.
13.
RECAPTURE PROVISION
In the event that the CITY fails to expend state funds in
accordance with state law and/or the provisions of this
AGREEMENT, the DEPARTMENT reserves the right to recapture
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state funds in an amount equivalent to the extent of
noncompliance. Such right of recapture shall exist for a
period not to exceed three (3) years following termination of
the AGREEMENT. Repayment by the CITY of state funds under
this recapture provision shall occur within thirty (30) days
of demand. In the event that the DEPARTMENT is required to
institute proceedings to enforce this recapture provision, the
DEPARTMENT shall be entitled to its cost thereof, including
reasonable attorney's fees.
14.
SEVERABILITY
In the event any term or condition of this AGREEMENT or
application thereof to any person or circumstances is held
invalid, such invalidity shall not affect other terms,
conditions, or applications of this AGREEMENT which can be
given effect without the invalid term, condition, or
application. To this end the terms and conditions of this
AGREEMENT are declared severable.
15.
REDUCTION IN FUNDS
The DEPARTMENT may unilaterally terminate all or part of this
AGREEMENT, or may reduce its scope of work and budget, if
there is a reduction in funds by the source of those funds,
and if such funds are the basis for this AGREEMENT.
16.
ADMINISTRATION
a)
The CITY'S representative shall be fH~. .~QC.~..
The DEPARTMENT'S representative shall be Ken Back.
b)
IN WITNESS WHEREOF, the DEPARTMENT and CITY have executed
AG~~NT as of the date and year written below.
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Chuck Clarke, Director CITY
Department of Community
Development
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