Res 89-004
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COUNCIL OF ~}¿ CITY OF FEDERAL
between the City of Federal Way
Mayor to execute such agreement
FIRST DRAFT 10/9/89
RESOLUTION NO. 89-4
A RESOLUTION OF THE CITY
WAY, related to a loan agreement
and King County, authorizing the
on behalf of the City Council.
WHEREAS, under the provisions of RCW 35.02 the City of
Federal Way must officially incorporate by March 10, 1990; and
WHEREAS, on the date of official incorporation a number of
responsibilities will transfer from King County to the City of
Federal Way, including the levying of taxes and the provision of
municipal services, and
WHEREAS, the City Council finds that the City of Federal
Way is in need of funds in order to be able to engage in
activities which will lead to an orderly transfer of
responsibility from King County to the City of Federal Way, and
WHEREAS, the City Council finds that the most appropriate
method for raising such interim funds is by borrowing the same
from' King County; --andh- the .' purp-6se'-n-ot-nothi~; - -resol utiön -, Is' to --
authorize the Mayor to enter into an appropriate:_]._~a_1!__~gre~~~.!:l.tI___--__--
,-.- - now; --there-fore :--_uu_--- ---,-- __n,_____------ - ,_u-
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THE CITY COUNCIL OF THE CITY OF FEDERAL WAY RESOLVES AS FOLLOWS:
section 1. The City Council hereby directs and authorizes
the Mayor of the City of Federal Way to execute on behalf of the
City Council that loan agreement attached hereto as Exhibit "A",
and by this reference incorporated herein, under the terms of
which the ci ty of Federal Way will borrow from King County a
principal sum not to exceed six hundred thousand dollars
($600,000.00) to finance the start-up costs of incorporation for
the City of Federal Way.
ADOPTED BY the City Council of the City of Federal Way,
Washington this day of 1989 and signed in
authentication thereof this ---- day of 1 1989.
APPROVED AS TO FORM:
City Attorney
ATTEST:
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MAYOR
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F~~~i";;;c A.U/Pf 89
RESOLUTION NO. 89-4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL
WAY, related to a loan agreement between the city of Federal Way
and King County, authorizing the Mayor to execute such agreement
on behalf of the City Council.
WHEREAS, under the provisions of RCW 35.02 the city of
Federal Way must officially incorporate by March 10, 1990; and
WHEREAS, on the date of official incorporation a number of
responsibilities will transfer from King County to the City of
Federal Way, including the levying of taxes and the provision of
municipal services, and
WHEREAS, the city council finds that the City of Federal
Way is in need of funds in order to be able to engage in
activities which will lead to an orderly transfer of
responsibility from King County to the City of Federal Way, and
WHEREAS, the City Council finds that the most appropriate
method for raising such interim funds is by borrowing the same
from King County, - nand-n-the- purpose~mn0f-n~thism nr-esolution ís- to
authorize the Mayor to enter into an approprié\_~~ -_1-no~~~nn~gr~~~~_I1:tJ_---- -, n-
now~ ---therenfore: ,_n_--_n_- _nn--- ---- --______n___------
THE CITY COUNCIL OF THE CITY OF,FEDERAL WAY RESOLVES AS FOLLOWS:
section 1. The City Council hereby directs and authorizes
the Mayor of the City of Federal Way to execute on behalf of the
City Council that loan agreement attached hereto as Exhibit "A",
and by this reference incorporated herein, under the terms of
which the city of Federal Way will borrow from King County a
principal sum not to exceed six hundred thousand dollars
($600,000.00) to finance the start-up costs of incorporation for
the City of Federal Way.
ADOPTED BY the City Council of the City of Federal Way,
Washington this day of 1989 and signed in
authentication thereof this ---- day of , 1989.
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APPROVED AS TO FORM:
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MAYOR
City Attorney
ATTEST:
Resolution No.
Page 2 of-
City Clerk
FEDWAY:LOAN
of
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ORDINANCE NO.
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.
All actions previously taken the City's officials and agents
in connection with the State loan are hereby ratified and approved.
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 day of
1989.
FEDERAL WAY, WASHINGTON
Mayor
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APPROVED AS TO FORM
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City Attorney
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ATTEST:
City Clerk
LAW OFFICES OF
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£1;/1 p.,o. L~'
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PRESTON. THORGRIMSON. ELLIS 8c HOLMAN
5400 COLUMBIA SEAFIRST CENTER
701 FIFTH AVENUE
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SEATTLE. WASHINGTON 96104-7011
(206) 623-7560
MEMORANDUM
LOAN BETWEEN FEDERAL WAY AND KING COUNTY
I.
AUTHORITY
A. Newly formed cities may issue tax anticipation or revenue
notes or warrants prior to the date they are officially
incorporated. RCW 35.02.130
B.
Local governments may invest their funds in
1.
bonds of a municipality as long as the bonds are rated
or
2.
registered warrants of a municipality
RCW 39.59.020
c. consequently, the only obligations Federal Way is
authorized to issue and King County is authorized to purchase are
registered warrants.
II.
REQUIREMENTS FOR WARRANTS
A. If the warrants will not be paid off in the current fiscal
year, they will be considered to be limited tax obligations of the
city. The city may issue general obligations without a vote, as
long as all of the general obligations outstanding do not exceed
3/4 of 1% of the assessed value of the property in the city.
B. The warrants must mature within 6 months from the end of
the fiscal year in which they are issued to the county. RCW
39.50.050.
III.
ORDINANCE AUTHORIZING WARRANTS
A.
The ordinance must specify the following:
,
I. The maximum amount lof the warrants to be issued.
They can be issued at once or over time. If over time, will need
to designate someone to oversee theiì- issuance.
2.
The interest rate(s).
3. The term of the warrants. Could be when the money
becomes available (but not later than June 30th) or a set date or
COpy
day. May specify that they can be paid earlier than the set date
upon notice to the County.
4.
Payment dates for interest and principal.
5.
Set forth the form of the warrants.
6.
Authorize the signing of the warrants.
7.
Create
a
special
fund
for
the
payment
of
the
warrants.
IV. COUNTY MUST ADOPT A RESOLUTION AUTHORIZING THE PURCHASE OF THE
WARRANTS
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THIS LOAN AGRREMENT (the "A9reementW) is made ~s of
---------------' 1969, by and between KING COUNTY, A-
'polilical subdivi5ion of th~ StAte of Washington (the .County"),
.
CIne] the CiLy of
, a municipl\l corporation (the "City")-..
REOITALS
WHEREAS, aL a special election on March 14,1969, two new
cities were approved for formation. in King cou~ty; end
WHEREAS, under Lhe provi5ions of RCW 35.02, the, new
ciLies of Federal Way and SeaTac mu3t officially incorp?rate by
March la, 1990¡and
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, WH~REAS, on the dðt~ ,of official incorporation"ð number
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00 - - - _..~- - of "ð u'Lhor i l i e5 - and-"re spans i bi Ii tie s,wi 11- tr-ans fer' f rom- Ki ng"County.-'
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,- ---' ,,0, .'_0"- .. ._"..'-'---'- "-- ,.. ,.------. ---,-~",,-,,-"u'-"'- --.., -
Lo Lhe new cities, inc1~ding ~h~ levying oftaxe5 and the
provision of municipal services such os police, roads, and
municipùl courta; anñ
WlIë.R_F.~'),-,the 9oa1s or the City of
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and King
COUlltt-ð'!C Lo achieve an orderly transfer of authorities anð
lesponsi~ilitie5 to
without di5rupting services and to
e5tab1if:sh a posiLive and productive relationship between the City
and tHe County;
r WHEREAS, it is in the best inherest5 of the people of the
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ci ly °and th~ Coullty lha L lhe County make e loan to the Ci ty to pay
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[or incurpul~lion start-up costs inc~rrcd by the City prior to the
availability of nthpr funding¡ and
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WHEREAS, lhe County and the City hove Agreed that Q loan
Of tunas on th~ t~LJII~ ClI1Ù conditions set fo~th herein provides the
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best means of tinancins th~ t£ut1sition to incorpo~ation of the
ç! ty cHId con t i nua t ion of govcrnmen tal ::se ry ices;
NOW, THERE~ORB, in consideration of the mutual promises
made herein, th~ County and the City hereby agree Cl5 follows;
AGRtEMENT
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DEFINITIONS .-~
-- -- -- - -, -,
.-,~:",::,:_:::_~ .:l'~l--"I-ntere5t'Rat~-" ~h¡:)11-be'-:-t.:he"weighted-average yield- of--------,
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'-,--, - '-.. -' .. .-.. ---
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','-,-- the' Ò'vernl'ght--:lhvestmc"tit-rat¿ - übtàineð by-the' County. -hThe'County .-,
will calculate the rQte monthl~, in arrears.
1.2
.. "Loan" shøl1 meclJ1 the loan made by the County to the
- City purl:Su¿l11tLo the terms of thi~ Agreement.
2.
LOAN TERMS.
2.1 General Ter~. subject to the terms hereof, the Coun~y
will lend the City a principðl sum not to exceed J/1.t 1 hundred
~Gon. tJDO
thousand dollars (~)
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from the county's Current Expense Fund
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to finance the start-up cu~ts of incorporation for the City. This
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Agreement shall b~ the sole eviðenc~ of such Loan. The proceeds
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Qt the Loan snail b~ u~ed by lhè City solely to pay for the
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s~art-up ~osls of incorporation.
The loan amount will be
01sbursp.c1 in aCCOJdè:UIt.:~ with Sct:lion 2.6 of lhl:J Agreemenl:.. .
2.2
Term.
The term of the Loan shall be for two' yoQr~.
2.3
Intt:I~ôt.
The rale of intereðt to be charged the
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City on the princlp81 balance or the Loan, from time to time
out5~andlng, ~ha1l be ~etermined pursuant to this Section.
~eginning from the date of exec~tion or this agreement, interest
will be charged on the priuciJ:1al balance of the Loan, from time to
time outstanding-
Interest, ho,...ever, will not accumulate on the
amount of any warrant requested by thè City until the County has
-- - - .- is'sued 'SUCh-WiHtdl1t..----Thc..-intere:st. ðo.~harged_shalL be...aàded-,.- - - .'
-. . -~-~-~~ nt hJ. y-t O..th. e:-=pr i nc..Lp a Lb-è:Ü_auc L.o_L__the- _Lo an - --a n d:~.::-5h a 1 L_j)_ecom 8-- A '. - ~-----
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- ._."'_0-"- '",-"0_"," ,_'_"0'.'___----"-,'--------""-'--"----'----"-'-'---....,-....--.'--_,"'h'__,._"---_O_----- ------.-.-'.--
-- ----:--'-'-- "pi! z::-t:-.'p£_--s uch-pr-i'nc ~pa ~--bala~c~--\ln ti-l--..p~i d'.-~-,-- ------"'--":--:---.~',------:-'-;----'-
---.- 2.4 payments of Principal ~n~ Interest._. ,~ðyrne~~.._i!".._full_J~__..__.,,--
- --¡
due. on the date two yeGtt'~ fI.OIII the execution of this agreement.
2.5, prepayment.
The City may, withoul the payment of penalty or
premium, prepay the principo1 of the Loan plu~ any accrued
interest thereon In whole or, ftom time to time, in part, any
partial payment to be made in the $~m or One Thousand Dollars
($1,000) or all Intestal multiple thereof.
All such partiðl
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prepay~p.nts shall be applied fitst ayainsl accrued interest, if
\,;
any,
2.6
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Di5bur$emen~ of the~.The County shall pay the
procecðso~ the Loan by i~~uing warrants requested by the City.
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Tht! County t;;hal1 i55ue \tlarrant$ for Lhe payment of city
~x?t! ùilUreG upon receipt of IS voucher containing the :signature of
one or morl'" only i'luthorizcd agént:s of t.hp. City.
'l'ht! CiLy shall file with the County Office of Flncsncicl
of
Managcmc::nt th~ n£lmes and signa~ures o( those persons designated by
the City as èSl.1thorlzeù to sign these vouchers.
The persons so
ùesignaLed may be changed by tije City by filing ð notice with the
county Office of FinèSncia1 Mðn~gement.
Any such change will take
effect thlrly (30) days after notice is received by the County
Office of Financial Management.
2.7
payment to the cou~..
All sums payabl~ to the County
--.-- ---- n-_'u
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- ,... ----",-
her~unò~t 1:)lIðll be pa~.d direct]¡y to the County in immeãiately
,-,----- ,-
,-, -,u_- -,--,-, '_'-___h_____-----------'-'--'---------'-----------'---,-----------",
---:'-:--,a va! ïab:le' 'runð s-or.. shall,.. be-ti ~ris (e r red--to-.the-~Co:unty"t-$ - accòun t...C t"-:_-,-
-- -..u, -,--- ,--_..._--" ,-- hh,.. ----_..---- ----,,---,-- --------,--..-----...,--
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- a bank designateð by the County in writing.
The County ~hall senã
._-'-'----"'- -,
the City statements of all amounts due hereunder, which statements
shall be considered correct and binding on the City unless the
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City notifies the County to the contrary within thirty (30) days
of any statement which it deems to be incorrect.
2.8
oblIgation of the Cit~.
The Loan is a genera1 obligation
of the City.
3.
REPRE5~NTATIONS AND WARRAN~IES.
.
The newly elected officials o! the City (City Officials)
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he~eQY ~eprescnt and warrant a~ foì~o\tls:
~
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3.1
~~er and Authority.
The City Officic15 have full power
and authority to execùte thia ~9reement, end to conduct its'.
affairs as presently conducted, and hcve taken all offic1cl action
necessAry to authorize the exeþution, delivery, and perform~nce of
.
this Agreement.
3.2
Y~!!~-~lIù~!~ùi~_A~r~~m~nt.
.
Upon their execution and
delivery, thi~ Agreement will constitute a valid and bindi~9
obligation of the City, enforc~ab1e in accordance with its terms.'
4. ,EXECUTION
4.1.
Conditions to the~nty's Obligations at Execut~on.
. ..
The obI iga t ion of ~-~~ _c:o_u_n~:(- to m_ð,ke _~he- _r.?:~_rt -~e_~e,,?!,,_det:__~ So' "subj act,
n______~-~~-~-~-=---~ ~~f~~ ~J1}~n ~_~n 0 r __J~~i_o rto_e x ~.9 uti 0'::_..<:>- ~ e ac~_o f_- ~he_..______m_--
- --~~~~~~~~_~~föllow-in9:-:--con-ditiòns; =-:-~
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4.1.1.
The execution,and delivery of this Agreem~t by
the City.
4.1.2.
Th~ delivery ~f a certified copy of the
resolulion of the City's newly'elected officials authorizins the
execution, delivery and perfor~ðnce of this Agreement.
4.1.3.
The d~11v~ry df a certificate of the Clerk of the
County Council as to th~ incum~ency of ~ach of the City Officials.
4 '2
'),
Condition5 to the S!!~L2b1i9ation at Execution.
The
obligation of the-City to receive~the Loðn hereunder is subject to
the fulfillment, on or 'prior to thc\xecution of eðch of the
!o]1owing conditions:
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4.2.1.
Th~ execution ~nd dQ1iv~ry or this A9r~eme~t by
the County.
5.
nonnOWF.R'5 C".OVF:NANTS.
As long a~ any portion of the Loan remains outstanðing, Lhe
City does hereby consent and agree with the County that it will
use the proceeds of the loan o~ly for the purpos~s described in
Section 2.1 and will furnish the County such evidence as it may
reasonably require with respec~ to such use.
6.
MISCELLANEOUS.
6.1
Entir=_Understandingi,Amendments.
This Agreement
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contains the entire understand~n9 of the parties hereto with
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resp~ct _to.... ~_he subj~c::Lmatter - ç::on_tau~n..ed herein.
No__alterat:ion,
----..-- -,--,-,--- ---- -...-,-.._uu '----"-- ... ---_u_----'- uu-----,-----------,"--""'" ,....
C;I/II~nùJllenL or modification of ltf'llY of the terms of this Agreement
~hC;lll ~e valid unle55 made by an instrument si~ned by each of the
parties hereto.
6.2
Separability of provi$ions.
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In case anyone or more of
the provision~ of this Agreement o~ any application thereof shall
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be invølid, illegal or unenfor~eable in any respect, such
provision or provisions shall be deemed to be modified in any
r~~p~ct necessary to make it ot them consistent with the
applicable law, regul~tion or off~cial interpretation, and the
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va11ð1ty, legality anù en!OrCcòbil\lY of the remaining provi:'lions
~ereof and thereof anð any oth~L application hereof and thereof
shall not in ~ny w~y ~e ùffectdd or impaired.
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Att~~=y:":_Fee8.
In the event any action in law or
equity or arbitration or other-proceeding is brousht for the
enforcement of this Agreement, br in connection with anl of the
provisions of this ~9reement, tþe successful or prevailing party
or p~rt¡es shall be entitled to reQsonable attorneys' fees and
other costs reasonably incurred in such action or proceeding,
including those incurred prior ~o the institution of such action
or proceeding.
6.4
Governing Law.
Insofar as reference to State law ~ay be
- -.- - required to construe this Agreeltlent,- this Agreement shall be
-.-- - 9 over n'eù- by and--cons tr'ued---in- ac~ordance- w i-thutho-lawsof the--Sta te- ,_n ---
---, - ------õ-f - Wð s-hï rig t;(in-~----
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u'------'----- ,-------- n___'-------------- -..--------- -----------,- -- --
6.5.
Col.mlcrparts.
Thi5 iåstrument may be executed in one or
more counte~pð(ls, all of which'shall be considered one and the
same agreement, enù shall becom~ effective when one or more
counterpart5 have been signed bl each of the parties hereto and
copies or telecopies of the 5i9~ature pages have been delivered to
each of the other parties heretó.
6.6.
Remedi~l:>.
Tile parLie5 hereto shall ha'le any remedies
for breach of thi~ ~~reemenL av~i1ab1e to them provided by law or
equity.
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TN WJTNr.::;;, WIIEReOf', each or the parties hereto has executed
this M)r~~1i1cnt on this - day of ----
, ,1989.
CT'!"!' Or' F'J::nERAT. WAY
KING COUNTY
of
By_____-----------------
By____-----------
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Its
Its
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