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HomeMy WebLinkAbout1071 Resolutioni S y 1 RES:OLUT LON N.O. 1071 f 1 T A RESOLUTION OF THE CITY OF PASCO AUTHORIZING THE CITY TO ENTER INTO,A CONTRACT WITH THE STATE HIGHWAY DEPARTMENT ..;WHEREAS, the City Council of the City of Pasco deems it in the City's best interest to enter into Agreement G C 3717• with. the Highway Department, now, therefore, the City Council of the City of Pasco hereby resolves as follows: Section 1. The City Manager is hereby authorized and directed to execute on behalf of the City Supplement Agreement G C 3717 with the State Highway Department, a copy of said agreement is attached hereto and by this reference incorporated herein. Section 2. This resolution shall become in full force and effect after its passage and as required by law. PASSED and APPROVED by the City Council this 15 day of February 1977. " 41 Ja idrick, Mayor ATTESTE� : Leo E. Olney, Ex Officio Cit y�lerk APPROVED: Patrick T. Roach, City Attorney i h �' J HIGHWAY COMMISSION DEPARTMENT 01- 1­IGHV1'AYS Highway Administration Building Olympia, Washington 98504 (2061 753-6005 Mr. George Smith City Manager City of Pasco P. 0. Box 293 Pasco, Washington 99301 Dear Mr. Smith: state *, tment of Dixy Lee Ray - Governor ` W. A. Bulley - Director .. February 4, 1977 Contract 9883 Pasco -Kennewick Intercity Bridge FAM -5015(1) and BRM 5015(2) I am returning herewith the proposed Supplemental Agreement to GC 3717 which has been prepared in accordance with the discussions between yourself and Mr. Gray. You will note that Section I is in accord with our previous correspondence and your transmittal of January 25. The remaining items in your transmittal of the 25th have been resolved as follows and I understand have been discussed in detail with you over the telephone by Mr. Gray. 1. The period of loan has not been extended beyond June 30, 1977 nor the 1.1 million dollars. It is my understanding you have been advised that we are of the opinion that the Highway Commission would not look favorably on such an extension and that for that reason you have withdrawn your request. 2. The words "becoming due and payable" have been inserted in the agreement to cover the eventuality which you mention. 3. A fixed interest rate has not been incorporated into the supplemental agreement upon the advice of the Assistant Attorney General. Although the law is not specific on this point it is thought that the Department should receive interest rate at the same rate they have to pay if it becomes necessary for us to make an interagency loan. 4. We have incorporated into the supplemental agreement a $25,000 revolving fund per your request. Howard Sorensen, Chairman A. H. Parker flrnm .• ,� Virginia K. Gunby Julia Butler Hansen Lorna Ream C,,4 a. Lue Clarkson ,r i, ary Page two Mr. George Smith February 4, 1977 As it relates to your request for a change in the original agreement GC 3717 related to change orders, I understand you have been advised that although the Department has the authority and responsibility for change orders, that we cannot commit federal funds on the basis of our signature. Mr. Gray expects to have a meeting with the Federal Highway Administration in the near future in an effort to clarify change order approval and I am sure Mr. Cross will be advised of the results of that meeting. I am sure you can recognize that I do not have the authority to change Mr. Sorensen's letter.of January 19 as you suggested. I can contact Mr. Sorensen, however, if you deem it of significant importance. At this time this item is held in abeyance until we hear further from you on the subject if you so desire. I trust that you will find this draft of the supplemental agreement satis- factory to the Intercity Bridge Committee and that it can be executed expeditiously. I am sure you recognize the urgency of having this supple- mental agreement finalized well in advance of the March 1 date so that no delays will occur in payments to the contractor or the consultant. If you have any questions, please feel free to contact either myself or Mr. Gray and we will do our utmost to continue to respond to the cities' request. Very truly yours, W. A. BULLEY Director of Highways WAB :me SUPPLEMENTAL AGREEMENT THIS SUPPLEMENTAL AGREEMENT, made and entered into this day of 1977, by and between the CITY OF PASCO, WASHINGTON, and the CITY OF KENNEWICK, WASHINGTON (jointly referred to herein- after at times as the "CITIES"), and the STATE OF WASHINGTON, acting by and through the Washington State Highway Commission .and the Department of Highways, hereinafter called the "STATE", WITNESSETH: WHEREAS, the parties hereto intered into an agreement dated the 23rd day of January, 1975, providing for the construction of a new four -lane bridge over the Columbia River between the cities of Pasco and Kennewick parallel to the existing Columbia River bridge (hereinafter referred to as the "Project"); and WHEREAS, the cities have been unable to secure sufficient financing to continue to meet their obligations to pay 25 percent of the construction expendi- tures on this federal -aid project for the period of March 1, 1977 through June 30, 1977 as required by existing federal law and FEDERAL -AID PROJECT AGREEMENT NUMBERS BRM 5015(2) and FAM 5013(1); and WHEREAS, the cities are actively seeking and anticipate obtaining a revision of federal law in the Spring of 1977 reducing the cities' matching requirements for the Project to a percentage less than 25 percent; and WHEREAS, the cities have requested the STATE to provide state motor vehicle funds as may be required to enable the cities to obtain federal -aid matching funds for the construction of the Project in accordance with and to meet the obligations becoming due and payable by the aforesaid federal -aid project agreements for the period of March 1, 1977 through June 30, 1977, said advancements to be reimbursed promptly to the motor vehicle fund upon the revision of federal -aid matching requirements; NOW, THEREFORE, in consideration of the STATE advancing motor vehicle funds to the CITIES to obtain federal -aid matching funds for the construction of the Project as provided herein, the CITIES OF PASCO and KENNEWICK agree and covenant as follows: I I The CITIES, in dealing with the Highway Commission on matters relating to the Bridge, will be represented by the Elected City Officials or their respective City Managers. The CITIES shall meet with the STATE from time to time to review the progress of the project and its financial status. II The STATE agrees to provide motor vehicle funds appropriated to the Washington State Highway Commission (for reimbursable expenditures for construc- tion of city street projects) for Project expenditures becoming due and payable during the period from March 1, 1977 through June 30, 1977 only, as may be neces- sary to enable the cities to obtain federal -aid matching funds for the construc- tion of the Project in accordance with and to meet obligations established by FEDERAL -AID PROJECT AGREEMENT NUMBERS BRM 5015(2) and FAM 5015(1) and Section 110 of Title 23 U.S.C. In the event federal law is revised to reduce the cities' matching requirements with respect to federal bridge replacement funds to a per- centage less than 25 percent and such matching requirement is retroactive and applicable to all prior expenditures for construction of the project resulting in a remittance to or on behalf of the cities for prior overpayments of their share of construction costs, then in such event the cities agree to reimburse promptly the motor vehicle fund for advances as authorized hereinabove: PROVIDED, That in the event the matching ratio for federal/city participation in the cost of constructing the project has not been changed to reduce the city matching require- ments by July 1, 1977, or in the event for any reason the cities do not receive a -2- cash remittance for overpayment of their share of construction expenditures suf- ficient to repay advances from the motor vehicle fund, then in either such event the aforesaid advances by the STATE from the motor vehicle fund shall be deemed a loan to be repaid to the motor vehicle fund through withholding a portion of the cities' motor vehicle fuel tax apportionments as provided in paragraphs III, IV and V hereinbelow. III In the event that advances made pursuant to paragraph II hereinabove are not reimbursed to the motor vehicle fund by July 31, 1977, each such advancement from the motor vehicle fund shall bear interest from the date made at an annual rate of 5.65 percent. Beginning with July 1, 1977, and with the beginning of each fiscal year thereafter, the annual rate of interest shall be adjusted to the cur- rent interest rate as fixed by the State Finance Committee in accordance with ch. 43.33 RCW and RCW 43.84.110. Such loan is made to the CITIES upon the ex- press condition that the expenditures of local funds committed by them for the construction of the project, including the funds obtained by the total amount of councilmatic bonds authorized by the respective city councils, are spent except the sum of $25,000.00 as provided in paragraph IV below. In addition, any funds committed to the Project that become available to the CITIES shall be immediately transmitted to the STATE for payment of Project costs. The estimates for Project costs and funding for March 1, 1977 through June 30, 1977 are set forth in Exhibit "A" attached hereto.. IV In consideration of improving accounting procedures for the CITIES, the CITIES authorize and direct the Pasco City Manager to establish and administer a revolving fund account, limited to $25,000.00. This account will be originally funded with the $25,000.00 as described in the preceding paragraph. The account -3- will be used.to pay the cities' matching share of incurred project administrative expenses provided that these expenses are eligible for Federal participation at the current matching ratio. The procedure for payment of these expenses is to pay the obligations as they occur, bill the STATE for the FEDERAL matching share of the expenses and reimburse the revolving fund account upon receipt of the Federal funds, thus resulting in a declining account balance. The State agrees to refund the account as needed as part of the loan described herein if the account is depleted before termination of this agreement. u In consideration -of the STATE loaning funds to the CITIES as provided in paragraph II above, the CITY OF PASCO hereby authorizes and directs the State Treasurer.to continue to withhold monthly the sum of $6,250 from the CITY OF PASCO's motor vehicle fuel tax apportionments, and such funds withheld through June 30, 1977 shall be applied to Project costs. The monthly withholding shall be reviewed and adjusted at the beginning of each fiscal year. Beginning with July 1, 1977, and with each fiscal year thereafter, the amount to be withheld shall be adjusted to fifty percent (50%) of the entire anticipated average monthly motor vehicle fuel tax apportionments available to the CITY OF PASCO. Beginning July 1, 1977, the State Treasurer shall first deduct accrued interest on the prin- cipal outstanding from the sum withheld each month, and the remaining amount of the sum withheld each month shall be applied to principal on the loan until the loan has been fully repaid to the STATE, including interest thereon. VI In consideration of the STATE loaning funds to the CITIES as provided in paragraph II above, the CITY OF KENNEWICK hereby authorizes and directs the State Treasurer to continue to withhold monthly the sum of $7,333 from the CITY OF KENNEWICK's motor vehicle fuel tax apportionments, and such funds withheld -4- through June 30, 1977 shall be applied to Project costs. The monthly withholding shall be reviewed and adjusted at the beginning of each fiscal year. Beginning with July 1, 1977, and with each fiscal year thereafter, the amount to'be with- held shall be adjusted to fifty percent (50%) of the entire anticipated average monthly motor vehicle fuel tax apportionments available to the. CITY OF KENNEWICK. Beginning July 1, 1977, the State Treasurer shall first deduct accrued interest on the principal outstanding from the sum withheld each month, and the remaining amount of the sum withheld each month shall be applied to principal on the loan until the loan has been fully repaid to the STATE, including interest thereon. VII The CITIES agree to hold the Federal Government and the STATE harmless from any and all costs, claims, demands, and obligations of whatsoever nature arising from or by reason of the STATE's participation iri the Project. The CITIES fur- ther agree to defend at their own costs, all suits or actions of whatsoever nature brought against the CITIES, Federal Government, and/or the STATE arising from the performance of construction Contract No. 9883 in connection with the Project or arising by reason of the STATE's participation in the Project. PROVIDED, nothing herein shall require the CITIES to reimburse the STATE or the Federal Government for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of the Federal Government, the STATE agents or employees. -5- VIII Except as provided herein, all terms of Agreement GC -3717 and Supplements thereto remain in effect. Approved as to form: Assistant Attorney General . 1977 STATE OF WASHINGTON Department of Highways By CITY OF PASCO By CITY OF KENNEWICK, WASHINGTON By -6- u i EXHIBIT "A" Estimated Project Costs and Funding Payment to Payment to March 1977 $ 975,000 $ 90,000 .$1,065,000 April 975,000 90,000 1,065,000 May 975,000 90,000 1,065,000 June 1977 975,000 90,000 1,065,000 Total $3,900,000 $360,000 $4,260,000 Federal Funds @ 75% $3,200,000 City Funds @ 25% $111001000 $4.3 Million Loan Required $1.1 Million -7- POST OFFICE BOX 293 1 PASCO, WASHINGTON 99301 February 16, 1977 Mr. W. A. Bulley Director of Highways Department of Highways Highway Administration Building Olympia, Washington 98504. Re: Contract 9883 - Pasco -Kennewick Inter -City Bridge - FAM -5015(1) and BRM 5015(2) Dear Mr.. Bulley: I am attaching a copy of the supplemental agreement to the above contract (GC 3717) which has been signed by the Cities of Pasco and Kennewick. Also attached is a signed copy of Supplemental Letter No. 6 to Consultant Agreement Y-1671. We would appreciate you forwarding copies of the above agreements for our files after they have been signed by the State Highway Department. Sincerely, gds:ptD AGeo�:eJ . Smith encl. City Manager - Pasco cc: Inter -City Bridge Committee Roy Cross, Project Coordinator Jim Somborovich, Project Administrator