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HomeMy WebLinkAboutCOW 2004-04-26 Item 3E - Loan Acceptance - Public Works Trust Fund Loan for Cascade View Neighborhood Drainage Construction ~ . ITEM NO. Meeting Date Prepared b~v Mayor's review Cou....ncil review CAS Number: 04-060 I Original Agenda Date: April 26, 2004 Agenda Item Title: Accept Public Works Trust Fund loan of $4,196,056.00 for construction of Cascade View Neighborhood Drainage Project. Original Sponsor: Council ~ldmin. Public Works Timeline: Sponsor's Summary: The Public Works Trust Fund has approved our application ora loan for $4,196,056.00 to construct a storm drainage system for the Cascade View neighborhood. Improvements to the storm drains, water mains and street restorations will be included. Recommendations: Sponsor: Authorize Mayor to sign the loan agreement with Public Works Trust Fund. Committee: Forward to COW and the Regular Council with approval. Administration: Same as sponsor. Cost Impact (if known): $4,196,056.00 loan at 1% per annum for a term of 20 years. Fund Source (if known): 412 Fund Surface Water (pg. 112 2004 CIP) Meeting Date Action 4/26/04 Meeting Date Attachments 4/26/04 Information Memo dated April 14,. 2004 Loan Agreement with Public F~orks Trust Fund Utility Committee Meeting Minutes from .4pri120, 2004 INFORMATION MEMO To: Mayor Mullet From: Public Works Direct~ Date: April 14, 2004 Subject: Cascade View Drainage Imurovements Public Works Trust Fund Loan Acceptance issuE. In May 2003, the City of Tukwila Public Works Depa~huent applied for a $4,196,056 Public Works Trust Fund loan to construct neighborhood improvements for the Cascade View area of Tukwila. This loan was recently approved by the Governor and now awaits formal acceptance by the City. BACKGROUND Design of the Cascade View drainage and roadway improvements is underway and is scheduled to be completed by the end of the year. Construction is anticipated to begin in early 2005. Estimated Proiect Costs Fundin~ Sources Preliminary Engineering $ 515,000 CDBG Grants $ 306,715 Construction 3,450,000 PWTF Design Loan (5 yr) 100,000 Construction Engineering 690,000 City Revenue 466,229 Contingency 414,000 PWTF Loan (20 yr) 4,196,056 Total $5,069,000 Total $5,069,000 The PWTF loan is for $4,196,056 at 1% interest per annum over 20 years. RECOMMENDATION Forward to Council with the recommendation tO accept the loan from the Public Works Trust Fund for the Cascade View Drainage Improvemant~. RL:ad attacluaent: Loan Agreement with PWTF file: 00-DR06.2 PUBLIC WORKS TRUST FUND CONSTRUCTION LOAN AGREEMENT NUMBER PW-04-691-070 CITY OF TUKWILA PART I: ENrI1RE AGREEMENT This agreement, and incorporated attachments, contains all terms and conditions agreed to by the PUBLIC WORKS BOARD and the LOCAL GOVERNMENT and no other statements or representations written or oral, shall be deemed a part thereof. This contract consists often pages and two attachments. An attachment to this agreement, ATTACHMENT I: SCOPE OF WORK, consists of a description of lo~al project activities, certification of the project's useful life, and identification of estimated project costs and fund sources and is, by this reference, incorporated into this agreement as though set forth fully herein. In addition, ATTACHMENT II: ATTORNEY'S CEKTIFICATION, is by this reference incorporated into this agreement. The PUBLIC WORKS BOARD and the LOCAL GOVEPdffMENT have executed this agreement as of the date and year last written below. PUBLIC WORKS BOARD LOCAL GOVERNMENT John LaRocque, Executive Director Signature Public Works Board Print Name Date Title APPROVED AS TO FORM ONLY Date This 17t~' Day of Mamh, 2003 Christine O. G~egoire ~ \ -- {°OO \ S ~ c~ Attorney General' Federal Taxpayer Identification Number By: Signature on File Jeanne A. Cushman Assistant Attorney General Page 1 2004 PWTF Constrdction Loan Agreement pART H: INTRODUCTION This loan agreement is made and entered into by and betwcan the PUBLIC WORKS BOARD, or its successor, (referred to as thc "BOARD"), a department of the state of Washington, and CITY OF TUKWILA (referred to as the LOCAL GOVERNMENT ). Acting under the anthofity of Chapter 43.155 RCW, the BOARI) has selected the LOCAL GOVERNMENT to receive a Public Works Trust Fund loan for an approved public works project. PART III: PURPOSE, The BOARD and the LOCAL GOVERNMENT have entered into this agreement to undertake a local public works project that furthers the goals and objectives of the Washington State Public Works Trust Fund Program. The project will be undertaken by the LOCAL GOVERNMENT and will include the activities described in ATTACHlvlENT I: SCOPE OF WORK. The project must be undertaken in accordance with PART IV: TERMS AND CONDITIONS, and all applicable state and local laws and ordinances, which by this reference are incorporated into this agreement as though set forth fully herein. PART IV: TERMS AND CONDITIONS The parties to this agreement agree as follows: 4.01 Rate and Term of Loan The BOARD, using funds appropriated from the Public Works Assistance Account, shall loan the LOCAL GOVERNMENT a sum not to exceed $4,196,056.00. The interest rate shall be one percent (1%) per annum on the outstanding principal balance. The term of the loan shall not exceed 20 years, with the final payment due July 1, 2024. 4.02 Local Pr<Yect Share The LOCAL GOVERNMENT pledges an amount of locally-generated revenue not less than ten percent 00%) of the total eligible portion of the project cost not funded by federal or state grants as identified in ATTACHMENT I: SCOPE OF WORK, to be verified at the time of project clone-out. Any change in the percentage of locally-generated funds may require an adjustment in the loan amount or interest rate charged, or both. In such event, the LOCAL GOVERNMENT agrees to execute an amendment to this agreement adjusting the loan amount or interest rate, as appropriate. Local project share must consist of expenditures eligible under WAC 399-30-030(3) and be related only to project activities described in ATTACHMENT I: SCOPE OF WORK. These expenditures may be made up to twelve (12) months prior to the execution of the loan agreement and verified at the time of project close-out. PUBLIC WORKS TRUST FUND MONIES.MAY NOT BE USED TO REIMBURSE THE LOCAL -GOVERNMENT FOR ANY COSTS INCURRED PRIOR TO EXECUTION O-F THIS LOAN AGREEMENT. Page 2 2004 PWTF Construction Loan Agr~m=nt 4.03 Disbursement of Loan Proceeds The availability of funds in the Public Works Assistance Account is a function of tax collection and loan repayment. If funds are not available at the time the invoice is submitted, or when the agreement is executed, the issuance of warrants will be delayed. Therefore, subject to the availability of funds, warrants shall be issued to the LOCAL GOVERNMENT for payment of allowable expenses incurred by the LOCAL GOVERNMENT while undertaking and administering approved project activities in accordance with ATTACHMENT I: SCOPE OF WORK. In no event shall the total Public Works Trust Fund loan exceed ninety percent (90%) of the eligible actual project costs. The disbursement of loan proceeds shall be initiated by the LOCAL GOVERNMENT on a Washington State Invoice Voucher form. The loan funds will be disbursed to the LOCAL GOVERNMENT as follows: Within thirty (30) days of the formal execution of this agreement, a sum not to exceed twenty percent (20%) of the approved Public Works Trust Fund loan shall be disbursed to the LOCAL GOVERNMENT. Within thirty (30) days of the execution of a Notice to Proceed, which follows the formal award of a construction contract, or contract for engineering services, a sum not to exceed twenty five percent (25%) of the approved Public Works Trust Fund loan shall be disbursed to the LOCAL GOVERNMENT. When the LOCAL GOVERNMENT certifies that 35% of the Public Works Trust Fund loan amount has been spent, a sum not to exceed twenty five percent (25%) of the approved Public Works Trust Fund loan shall be disbursed to the LOCAL GOVERNMENT. When the LOCAL GOVERNMENT certifies that 60% of the Public Works Trust Fund loan amount has been spent, a sum not to exceed twenty five percent (25%) of the approved Public Works Trust Fund loan shall be disbursed to the LOCAL GOVERNMENT. At the time of projent completion, a Close-out Report, (refer to Section 4.19 for Close-out Report), shall be submitted to the BOARD by the LOCAL GOVERNMENT certifying total actual project costs. The final Public Works Trust Fund loan disbursement shall not bring the total loan in excess of ninety percent (90%) of the eligible project costs or the total of $4,196,056.00 whichever is less. The Close-out Report shall serve as a contract AMENDMENT for determining the final loan amount, interest rate, and local share. In the event that the final costs identified in the Close-out Report indicate that the LOCAL GOVERNMENT has received Public Works Trust Fund monies in excess of ninety percent (90%) of eligible costs, all funds in excess of ninety percent (90%) shall be repaid to the Public Works Assistance Account by payment to the Department of Community, Trade and Economic Development, or its successor, within thirty (30) days of submission of the Close-out Report. Page 3 2004 pWTF Construction Loan Agreement 4.04 Interest Earned on Public Works Trust Fund Monies All interest earned on Public Works Trust Fund Monies held by the LOCAL GOVERNMENT shall accrue to the benefit of the LOCAL GOVERNMENT and be applied to the eligible costs of the approved project. Benefits shall accrue in one of two ways: 1. Reduce the amount of the Public Works Trust Fund loan. 2. Pay any part of eligible project costs that are in excess of ATTACHMENT I: SCOPE OF WORK estimates, if there is an overrun of project costs. The LOCAL GOVERNMENT shall establish procedures to ensure that all monies received from the Public Works Trust Fund loan can be readily identified and accounted for at any time during the life of this loan agreement. Such procedures shall consist of the establishment of a separate fund, account, sub-account or any other method meeting generally accepted accounting principles. 4.05 Time of Performance The LOCAL GOVERNMENT shall begin the activities identified within ATTACHMENT I: SCOPE OF WORK no later than three months after loan agreement execution, and reach pioject completion no later than forty-eight (48) months after the date of agreement execution. Failure to perform with/n the time frame described in the preceding paragraph may constitute default of this agreement. In the event of extenuating circumstances, the LOCAL GOVERNMENT may request, in writing, that the BOARD extend the deadline for project completion. The BOARD may, by a two-thirds vote, extend the deadline. The term of this agreement shall be for the entire term of the loan, irrespective of actual project completion, unless terminated sooner as provided herein. 4.06 Repayment The first loan repayment under this agreement is due July 1, 2005, and subsequent installments are due on July 1 of each year during the term of the loan. The first repayment under this agreement shall consist of interest only at the rate of one percent (1%) per annam, calculated on a 360-day year of twelve 30-day months, applied to funds received. Interest will begin to accrue from the date each warrant is issued to the LOCAL GOVERNMENT. Subsequent repayments shall consist of the principal balance due divided by the loan term remaining plus interest on the unpaid balance of the loan. The final payment shall be an amount sufficient to bring the loan balance to zero. The LOCAL GOVERNMENT has the right to repay the unpaid balance of the loan in full at any time, and the right to rel~ay at a faster rate than is provided in this agreement,.provided that any such payment must equal or exceed the principal amount normally due on an annual basis. Page 4 2004 PWTF Construction Loan Agr~ment The LOCAL GOVERNMENT will repay the loan in accordance with the preceding conditions through the use of a check, money order, or equivalent means made payable to the Department of Community, Trade and Economic Development, or its successor, and sent to: Department of Community, Trade and Economic Development Administrative Services Division/Fiscal Unit 906 Columbia Street S.W. P.O. Box 48300 Olympia, Washington 98504-8300 ~t Account The LOCAL GOVERNMENT shall repay the loan according to the option designated in Section 4.09 Loan Security. The name ofthe fund, account, orsub-accountshallbe:-St~C-'~;qC-~" ~0x.[~'~'~.. ','~tq',~<~ . 4.08 Default in Repayment Loan repayments shall be made on the loan in accordance with Section 4.06 of this agreement. A payment not received within thirty (30) days of the due date shall be declared delinquent. Delinquent payments shall be assessed a daily penalty beginning' on the thirty*first (31) day past the due date. The penalty will be assessed on the entire payment amount. The penalty will be twelve percent (12%) per annum calculated on a 360-day year for the delinquent amount. The same penalty terms shall apply to delinquent repayment of funds paid in excess of eligible costs as provided for in Section 4.03. The LOCAL GOVERNMENT acknowledges and agrees to the BOARD'S fight, upon delinquency in the payment of any annual installment, to notify any other entity, creditors, or potential creditors of the LOCAL GOVERNMENT of such delinquency including, without limitation, the state government and the United States of America or its agencies, credit rating agencies, and the municipal finance market. The LOCAL GOVERNMENT shall pay the costs and reasonable legal fees incurred by the BOARD in any action undertaken to enforce its rights under this section. Page 5 2004 PW'rF Construction Loan Agreement 4.09 Loan~ The LOCAL GOVERNMENT must select one of the following options for securing repayment of the loan. Please initial the appropriate option. 1. ~ General Obligation: This loan is a general obligation of the LOCAL GOVERNMENT. OR 2. Revenue Obligation: This option may be used only if the entire project is a domestic water, sanitary sewer, storm sewer or solid waste utility project. LOCAL GOVERNMENTS performing a storm sewer project that have not created a storm sewer utility or a combined sanitary sewer/storm sewer utility may not use this option. Projects providing for a mixture of bridge, road, domestic water, sanitary sewer, and storm sewer activities may not use this option. This loan is a revenue obligation of the LOCAL GOVERNMENT payable solely from the net revenue of the utility system indicated below. Payments shall be made from the net revenue of the utility after the payment of the principal and interest on any revenue bonds, notes, warrants or other obligations of the utility having a lien on that net revenue. As used here, "net revenue" means gross revenue minus expenses of maintenance and operations. The BOARD grants the LOCAL GOVERNMENT the right to issue future bonds and notes that constitute a lien and charge on net revenue superior to the lien and charge of this loan agreement. Please choose and initial one of the following utility systems: . Water~ ~ Sanitary Sewer (Wastewater) Stormwater Water/Sanitary Sewer Stormwater/Sanitary Sewer ~ Solid Waste OR 3. Local Improvement District: Pursuant to RCW 35.51.050, the LOCAL GOVERNMENT pledges to repay this loan from assessments collected from a Local Improvement District, Local Utility District or other similar special assessment district in which the improvements financed by this loan are located. The name of the special assessment district is Nothing in this section shall absolve the LOCAL GOVERNMENT of its obligation to make loan repayments when due~ and to adjust rates, fees, or surcharges, if necessary, to meet its obligations under this agreement. Page 6 2004 pWTF Construction Loan Agreement 4.10 Reeordkeeping and Access to Reco. rd~ The BOA_RD, the BOARD's agents, and duly authorized officials of the State shall have full access and the right to examine, copy, excerpt, or transcribe any pertinent documents, papers, records, and books of the LOCAL GOVERNMENT and of persons, firms, or organizations with which the LOCAL GOVERNMENT may contract, involving transactions related to this project and this agreement. The LOCAL GOVERNMENT agrees to retain all records pertaining to this project and this agreement for a period of six years from the date of project close-out. If any litigation, claim or audit is started before the expiration of the six year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 4.11 Report~ The LOCAL GOVERNMENT, at such times and on such forms as the BOARD may require, shall furnish the BOARD with such periodic reports as it may request pertaining to the activities undertaken pursuant to this agreement including, but not limited to, quarterly progress reports, the Close-Out Report, and any other matters covered by this agreement. Failure to file periodic reports as requested may result in termination of this agreement as per Section 4.14. 4.12 Indemnification The LOCAL GOVERNMENT will defend, protect, indemnify, save, and hold harmless the BOARD, and the state of Washington from and against any and all claims, costs, damages, expenses, or liability for any or all injuries to persons or tangible property, arising from the acts or omissigns of the LOCAL GOVERNMENT or any of its contractors or subcontractors, or any employees or agents in the performance of this agreement, however caused. In the case of negligence of both the BOARD and the LOCAL GOVERNMENT, any damages allowed shall be levied in proportion to the percentage of negligence attributable to each party. 4.13 Amendments, Modifications, andWaivers Except for an inereas~ in the amount of the loan governed by this agreement, the LOCAL GOVERNMENT may request an amendment to this agreement for the purpose of modifying the SCOPE OF WORK or for extending the time of performance as provided for in Section 4.05. No modificati9n or amendment resulting in an extension of time shall take effect until a request in writing has been received and approved by the BOARD in accordance with Section 4.05. No amendment or modification shall take effect until approved in writing by both the BOARD and the LOCAL GOVERNMENT and attached hereto. No conditions or provisions of this agreement may he waived unless, approved by the BOARD in writing. 4.14 Termination for Cause If the LOCAL GOYERNMENT fails to comply with the terms of this agreement, or fails to use the loan proceeds only for those activities identified in ATTACHMENT I: 'SCOPE OF WORK, the BOARD may terminate the agree, men[ i.n who~l.e. Or~lI~ pa.rt a[any~tlse..._T}}e,~B~Al~.~s~h~al 1 GOVERN1vIENT in writing oI lis aetermlnanon to termmam, tn~ t~a~,s, , ._ effective date of the termination. Nothing in this section shall affect LOCAL GOVERNMENT °bligafi°ns to repay the unpaid balance of the loan. Page 7 2004 pWTF Construction Loan Agreement 4.15 Termination For Convenience The BOARD may terminate this agreement in the event that federal or state funds are no longer available to the BOARD, or are not allocated for the purpose of meeting the BOARD'S obligations under this agreement. Termination will be effective when the BOARD sends written notice of termination to the LOCAL GOVERNMENT. Nothing in this section shall affect LOCAL GOVERNMENT obligations to repay the unpaid balance of the loan. 4.16 Governing Law and Venue This agreement shall be construed and enforced in accordance with, and the validity and performance hereof shall be governed by, the laws of the state of Washington. Venue of any suit between the parties arising out of this agreement shall be the Superior Court of Thurston County, Washington. The prevailing party is entitled to recover costs in accordance with Washington State Law (Chapter 4.84 RCW). 4.17 Severability If any provision under this agreement or its application to any person or circumstances is held invalid by any court of rightful jurisdiction, this invalidity does not affect other provisions of the agreement which can be given effect without the invalid provision. 4.18 Proiect Completion The BOARD will require and notify the LOCAL GOVERNMENT to initiate a Close-out Report when the activities identified in ATTACHMENT I: SCOPE OF WORK are completed. In the report, the LOCAL GOVERNMENT will provide the following information to the BOARD: 1. A certified statement of the actual dollar amounts spent, from all fund sources, in completing the project as described. 2. A certified statement that the project, as described in the Loan Agreement's Scope of Work, is complete and has been designed/constructed to required standards. 3. Certification that all costs associated with the project have been incurred. Costs are incurred when goods and services are received and/or contract work is performed. 4. Provide a dfite for reporting LOCAL GOVERNMENT conformance with the performance measures identified in ATTACHMENT I: SCOPE OF WORK. Page 8 2004 PW'rF Construction Loan Agreement 4.19 Project Close-Out In accordance with Section 4.03 of this agreement, the LOCAL GOVERNMENT will submit, together with the Close-out Report, a request for a sum not to exceed the final five percent (5%) of the loan amount. This disbursement shall not occur prior to the completion of all project activities. The LOCAL GOVERNMENT shall be responsible to ensure that their contractor(s) are in compliance with the Department of Revenue and the Department of Labor & Industries requirements. 4.20 Audit Audits of the LOCAL GOVERNMENT'S project activities may be conducted by the Municipal Division of the State Auditor's Office in accordance with state law and any guidelines the Department of Community, Trade and Economic Development, or its successor, may prescribe. Payment for the audit shall be made by the LOCAL GOVERNMENT. 4.21 Project Si~ns If the LOCAL GOVERNMENT displays, during the period covered by this agreement, signs or markers identifying those agencies participating financially in the approved project, the sign or marker must identify the Washington State Public Works Trust Fund aS a participant in the project. 4.22 Nondiscrimination Provision During the performance of this contract, the LOCAL GOVERNMENT shall comply with all federal and state nondiscrimination laws, including, but not limited to Chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA). In the event of the LOCAL GOVERNMENT'S noncompliance or refusal to comply with any applicable nondiscrimination law, regulation, or policy, this contract may be rescinded, canceled, or terminated in whole or in part, and the LOCAL GOVERNMENT may be declared ineligible for further contracts with the BOARD. The LOCAL GOVERNMENT shall, however, be given a reasonable time in which to cure this noncompliance. 4.23 Historical and CultUral Artifacts The LOCAL GOVERNMENT agrees that if historical or cultural artifact~ are discovered during construction, the LOCAL GOVERNMENT shall immediately stop construction and notify the local historical preservation officer and the state's historical preservation officer at the Washington State Office of Archeology and Historic Preservation. The LOCAL GOVERNMENT shall require this provision to be contained in all con~'acts for work or services related to ATTACHMENT ONE: SCOPE OF WORK. Page 9 2004 pWTF Construction Loan Agreement PART V: SPECIAL ASSURANCES The LOCAL GOVERNMENT assures compliance with all applicable state and local laws, requirements, and ordinances as they pertain to the design, implementation, and administration of the approved project. Of particular importance are the following: 5.01 KCW 43.155.060 The LOCAL GOVERNMENT shall comply with thc provisions of RCW 43.155.060 regarding competitive bidding requirements for projects assisted in whole or in part with money from the Public Works Trust Fund program. 5.02 WAC 399-30-030(3~ The LOCAL GOVERNMENT assures compliance with WAC 399-30-030(3) which identifies eligible costs for projects assisted with Public Works Trust Fund loans. 5.03 Assignment Neither this agreement nor any claims arising under this agreement, shall be transferred or assigned by the LOCAL GOVERNMENT without prior written consent of the BOARD. Page 10 2004 PWTF Construction Loan Agreement J e~' PUBLIC WORKS TRUST FUND CONSTRUCTION LOAN ATTACHlV[ENT 1: SCOPE OF WORK LOAN NUMBER: PW-04-691-070 CLIENT NAME: City of Tukwila PROJECT NAME: Cascade View Drainage Improvements 1. Provide a clear description of the project to be financed in part by a Public Works ~mst Fund loan. (Attach additional sheets if necessary): This project will construct drainage and roadway improvements within the Cascade View neighborhood. These improvements will consist of the following elements: · A new storm sewer system and under-drains along approximately 7,000 linear feet of public roadways. · Provide storm sewer stub-outs to the edge of the public right-of-waY to each private parcel and require that the residents connect roof drains, sump pumps, and other private drainage features to them. · Replace approximately 15,000 linear feet of curb, gutter, and sidewalks. · Repair approximately 11,000 square yards of failing pavement. · Resurface approximately 21,00.0 square yards of roadway. · Provide water quality treatment'through the use of Vortex, Stormceptor, or other similar water quality devices. · Return base flows to Southgate Creek. 2. Identify the project's performance measures. (Attach additional sheets if necessary.) By the completion of the construction of this project, the number of residents experiencing the effects of severe ground water problems will be reduced from 90% to-less than 10%. Severe groundwater problems are defined as visible damage (molds, standing water, etc.) within homes .and/or unusable portions of the surrounding property. 3. The term of this loan will be based on an engineer's certification of the expected useful life of the improvements, as stated below, or 20 years, whichever is less. If the local government prefers the term of its loan to be less than either 20 years or the useful life of the improvements, the preferred loan term should be indicated: 20 years. 4. I, Ryan D. Larso~, licensed engineer, certify that the average expected useful life for the improvem~n~fscribe/.~ bove is 40 years. . Signed: ~/~//~/"~ :,gz)'~-~',~/ / Date: 1/14/2004 Telephone: 206~2456 C:~Doeuments and Settings~Ryan-L~Desktop~Scope_of_work.doc Scope of Work Page Two Loan Number: PW-04-691-070 Estimated Prelect Costs: Total Costs Engineering $ 490,000 Environmental Review $ 20,000 Land/R-O-W Acquisition $ 0 Public Involvement/Information $ 5,000 Other Fees $ 0 Construction $ 3,450,000 Construction Inspection $ 690~000 Contingency ( 10 % of Const.) $ 414,000 1. Other (Specify) $ 2. Other (Specify) $ TOTAL ESTIMATED COSTS $ 5,069,000 Anticipated Fund Sources: A. Federal Grants CDBO $ 306,715 State Grants $ B. Locally Generated Revenue General Funds $ Capital Reserves $ Other Fund - Enterprise Fund $ Storm Utility ' $466,229 Rates $ Assessments $ Special Levies · $ Federal Lean(s) from: (identify all) $ State Loan(s) from: (identify all) Pre-Const. $100,000 $ $ Other: (identify sources) $ $ TOTAL LOCAL REVENUE $ $566,229 C. PUBLIC WORKS TRUST FUND LOAN $ ~ 4,196,056 C:\Documents and Settings\Ryan-L~Desktop\Scope_of_work.doc Scope of Work Page 3 Loan Number: PW-04-691-070 Calculating Local Percentage: Notes: 1. Grant funds cannot be counted as local match. Calculate as follows: $566,229 $4,196,056 + $566,229 - Local Percentage 11.89% The local contribution must be at least: Five percent (5%) for a loan interest rate of 2% Ten percent (10%) for a loan interest rate of 1% Fifteen percent (15%) for a loan interest rate of 0.5% P:~PROJECTS~A- DR Projects\00dr06 (Cascade View)\Trust fund Scope_oLwork.doc PUBLIC WORKS TRUST FUND ATTACHMENT I1: ATTORNEY'S CERTIFICATION I, , hereby certify: I am an attorney at law admitted to practice in the State of Washington and the duly appointed attorney of the (the LOCAL GOVERNMENT); and I have also examined any and all documents and record which are pertinent to the loan agreement, including the application requesting this financial assistance. Based on the foregoing, it is my opinion that: 1. The LOCAL GOVERNMENT is a public body, properly constituted and operating under the laws of the State of Washington, empowered to receive and expend federal, state and local funds, to contract with the State of Washington, and to receive and expend the funds involved to accomplish the objectives set forth in their application. 2. The LOCAL GOVERNMENT is empowered to accept the Public Works Trust Fund financial assistance and to provide for repayment of the loan as set forth in the loan agreement. 3. There is currently no litigation in existence seeking to enjoin the commencement or comPletion of the above-described public facilities project or to enjoin the LOCAL GOVERNMENT from repaying the Public Works Trust Fund loan extended by the DEPARTMENT with respect to such project. The LOCAL GOVERNMENT is not a party to litigation which will materially affect its ability to repay such loan on the terms contained in the loan agreement. 4. Assumption of this obligation would not exceed statutory and administrative rule debt limitations applicable to the LOCAL GOVERNMENT. Signature of Attorney Date Name Address T:\Contracting\CONTRAC'~Attcert.doc Utilities Commi.ttee April 20, 2004 Present: Para Carter, Chair; Pam Linder, Dennis Robertson Jim Morrow, Frank Iriarte, Bob Giberson, Gail Labanara, Ryan Larson, Mike Cusick, Rebecca Fox, Pat Brodin, Lucy Lautorbach 1. Waste Reduction and Recycling Grant Interlocals Rebecca said the City receives grants from both King County Solid Waste and the State Department of Ecology (DOE). She had outlined how the $77,575 grant from King County would be spent over two years. It covers special recycling for hard- to-recycle goods such as batteries and electronic equipment, and for compost and worm bin sales to residents. The majority of funds go to aid business recycling, which accounts for 75% of the City's waste. Funding from the County (and State) has been decreasing each cycle. DOE's two-year grant is for $14,487, and requires a 25% match, which will be provided by the King County grant funds. It will also be spent on worm and compost bin sales, and for business recycling. There are two agreements, one for each grant. Recommend both agreements for Mayor's signature to COW and Regular Meeting. 2. Cascade View Public Works Trust Fund Loan Acceptance The City asked for a loan of Works Trust Fund, and will receive it. The funds will be used to construct $4,196,056 from the Public the Cascade View drainage improvements. The City's contribution to the project is $466,229 and using other grants and loans as well will make a total $5.1 million cost. The loan is for 20 years at a 1% rate. Later in the meeting Dennis expressed some concern over how this loan repayment would affect general fund revenues. Staff stated almost all of the project would be paid from the utility funds, as pipes for water, sewer and surface water are under sidewalks and the road so repairs would be considered restoration. The general fund would pay for road improvements if roads were the main project. Recommend loan acceptance to COW and Reeular Meetines. 3. Cascade View Drainage Public Meeting Ryan showed some drawings of proposed street changes that might be made in Cascade as improvements are built. Staff said car speeds were one of the neighborhood's biggest problems. Staff is considering building comer bulbouts at intersections to define intersections and slow traffic. The road will appear to be narrower, though it will have a wider pavement area. If cars are parked on the roadway, traffic may slow because of the apparent nearness of cars. Trees may be added, though Ryan was hesitant to put trees in where they're trying to get rid of surface water. Pam L said staffhas been extremely patient and helpful thus far, and thanked them. Jim M said there will be one more open house when designs are 90% complete. Information. 4. Allentown/Foster Point Water and Sewer Loan The City applied for and has received a Public Works Trust Fun (PWTF) loan for sewers in Allentown and Foster Point. This loan is for $5.7 million, and has a 2% rate for 20 years. Jim M raised the issue of Metro connection fees increasing 58% at the first of the year.' He is interested in trying to alert residents they should sign up for Metro KC connections this year to avoid the increase, though they won't acthaily connect until 2005. The Committee members agreed that would be a good move. Recommend loan acceptance to COW and Regular Meetings. 5. First Quarter Reports Jim passed out new copies of the quarterlies. The Committee was impressed that staff already cleaned out most of the City pipes. Information. ~?~o, Committee chair approval