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Res 94-171 RESOLUTION NO. 94-171 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, AUTHORIZING ACCEPTANCE OF MONIES THROUGH STATE OF WASHINGTON PUBLIC WORK TRUST FUND LOW INTEREST LOAN PROGRAM AND DIRECTING EXECUTION OF AN AGREEMENT TO ACCEPT PUBLIC WORK TRUST FUND MONIES FROM THE STATE FOR IDENTIFIED PROJECTS, AUTHORIZING MATCHING FUNDS BY THE CITY, AND AUTHORIZING THE INTEREST RATE AND TERM OF THE LOAN. WHEREAS, cities are charged with providing and maintaining public infrastructure, transportation systems and public projects necessary to maintain and improve the public health, safety and welfare; and WHEREAS, the financial resources of cities to provide these necessary service and improvements are limited; and WHEREAS, the State has made available Public Works Trust funds to supplement city projects through issuance of a low interest (one (1%) percent) loan to the City, payable over a term of twenty (20) years; and WHEREAS, the City staff has aggressively pursued obtaining these funds, which are awarded on a competitive and weighted project basis, in order to maximize the local public benefits of these funds; and WHEREAS, the loans identified herein will net the City of Federal Way an amount not to exceed One-Million, Eight-Hundred Sixty-Six Thousand, Five-Hundred Fourty-Two Dollars ($1,866,542) which would otherwise have to be funded totally from local revenue sources, and which will require a City match not to exceed the amount of Seven-Hundred Ninety-Nine Thousand, Nine-Hundred Forty- RES # 94-171 , PAGE 1 COpy Seven Dollars ($799,947), thus resulting in maximum leverage of local tax dollars; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Loan Aqreements Authorized. For all projects identified in Column 1 of . Exhibit A, attached hereto and incorporated herein by this reference, the City Manager or his or her designated representative is authorized and directed to execute a loan agreement with Washington State or its agencies identified in Column 2 of Exhibit A as are necessary to accept the State Public Work Trust Fund loan monies in the amount identified in Column 3 of Exhibit A. section 2. Terms of Loan. The term of the loan shall not exceed twenty (20) years; and the interest rate shall not exceed the rate of 1%. section 3. Matchinq Funds Authorized. Pursuant to any necessary loan agreement, the City commits to supply matching funds in the maximum amount identified in Column 4 of Exhibit A, specific to each loan project. section 4. Receipt of Funds Authorized. For all projects identified in column 1 of Exhibit A, the City Manager or his or her designee is hereby authorized to receive the Washington State Public Trust Fund monies in the amount identified in column 3 of Exhibit A attached hereto. section 5. Creation of Loan Fund proiect Authorized. At the time of execution of each agreement and acceptance of the loan funds specific to that agreement, a separate project shall be RES # 94-171 , PAGE 2 established within the Grant Miscellaneous Government Fund, into which monies specific to that loan project shall be deposited. Section 6. Manaqer Shall Administer Funds. The City Manager or his or her designated representative shall have responsibility for the administration of the state loan monies received. section 7. Identification of Source of Funds. The approximate amounts, the source, the City matching share, the rate and term of the loan, for the loan fund projects are identified in Exhibit A attached hereto. section 8. Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. section 9. Severability. If any section, sentence, clause or phrase of this resolution should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this resolution. section 10. Effective Date. This resolution shall be effective immediately upon passage by the Federal Way City Council. RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, this ~ day of April , 1994. CITY OF FEDERAL WAY, WASHINGTON MA~}:E :1~ RES # 94-171 , PAGE J ATTEST: :zc EY, CMC CITY ATTORNEY, CAROLYN A. LAKE FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: RESOLUTION NO. 94-171 MARYK\RES\lOAN .pu RES # 94-171 , PAGE 4 March 29, 1994 April 5, 1994 EXHIIt TL.AJJl SPECIAL PRO !:rs OR LOANS Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 PROJECT SOURCE GRANT CITY TERM INTEREST FUND AMOUNT MATCH* RATE TOTAL A. SURFACE WATER MGT. AI. Kitts Comer Department of Community $ 789,373 $338,303 20 years 1% $1,127,676 Development Public Works Trust Fund Loan A2. South 336th Street Department of Community 1,077,169 461,644 20 years 1% 1,538,813 Development Public Works Trust Fund Loan TOTALS $1,866,542 $799,947 $2,666,489 * The City's Match in this case would be comparable to the "down payment" on a major purchase that is being financed. Note: All figures reflect a margin of 20% to allow for variances between design projections and actual project costs.