HomeMy WebLinkAbout1252 ResolutionRESOLUTION NO. 1252
A RESOLUTION offering to settle the outstanding debt on the Intercity Bridge
WHEREAS, both the City of Kennewick and the City of Pasco have tried
hard to find ways and means of reaching an equitable formula to settle the
debt on the Intercity Bride; and
WHEREAS, each City has tried to find an equitable way to determine
the manner in which past gas tax payments and past bond payments should be
equalized; and
t�]HEREAS, each side has merit to certain aspects of its concern and,
lacking a binding committment for a straight 50-50 settlement, but in a spirit
of compromise; NOW, THEREFORE,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PASCO:
Section 1., The City of Pasco unequivocably rejects the terms of Kennewick
Resolution No. 7944.
Section 2. The City of Pasco in lieu of the 50-50 settlement formula
directed unilaterally by the City of Kennewick, offers a settlement for all aspects
of the old bonds, proposed new bonds, and past payments to the State of
Washington via gas tax allocations, based on a formula of 55% for the City of
Kennewick and 45% for the City of Pasco.
Section 3. The terms of Section 2 would entail a one-time payment to the
City of Kennewick no later than July 15, 1979 of $31,838.00, embracing $15,465.00
for -past bond payments and $16,373.00 for past gas tax payments; an annual
payment to the City of Kennewick for 45% of the annual debt service on the 1976
Kennewick G.O. Bonds to equalize this debt on a 55-45 ratio, an amount which
over the remaining life of these bonds averages at $8,334.00 per year; an annual
payment to the City of Kennewick of 45% of the principal and interest on City of
Kennewick new bonds (Councilmanic G.O. Bonds) to be issued at an assumed interest
rate not to exceed 6.5% which payment is not to exceed $73,350.00 per year over
the life of these bonds; provided, however, that these Kennewick bonds should be
subject to call within ten to twelve years of date of issue and that the City of
Pasco shall have the right to subject its 45% share of the outstanding bonds to
the call feature by official request of the City Council of the City of Pasco,
whereupon the City of Pasco shall pay to the City of Kennewick the appropriate
principal and penalty to effectuate the call, and noted further that the City of
Pasco may, at its own option, issue Councilmanic G.O. Bonds to the maximum extent
feasible before utilizing any Councilmanic capacity that the City of Kennewick
may have available for use in behalf of the City of Pasco.
Section 4. This settlement compromise is made in the spirit of preserving
a viable and effective relationship with the City of Kennewick.
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PASSED by the City Council of the City of Pasco, Washington, this
21st day of May, 1979.
AT S
.ells, C ty Clerk
S
Dennis J. De elice, City Attorney
Chet Bailie, Mayor