Ordinance 4182ORDINANCE NO.4182
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON,
AUTHORIZING THE EXECUTION AND DELIVERY OF ADDENDUM NO. 3
TO 1NTERLOCAL AGREEMENT FOR DEVELOPMENT OF THE EDMONDS
CENTRE FOR THE ARTS; AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH; AND FIXING A TIME WHEN THE SAME
SHALL BE EFFECTIVE.
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. Findings and Determinations. The City Council makes the following
findings and determinations:
1.1 The City of Edmonds (the "City"), the Snohomish County Public Facilities District
(the "County PFD"), Snohomish County (the "County"), and the Edmonds Public Facilities
District (the "City PFD," and together with the City, the County PFD, and the County, the
"Parties") entered into an Interlocal Agreement dated November 4, 2002, recorded with the
Auditor of the County under recording number 200211060003 (the "Interlocal Agreement"), to
provide for the development of a Regional Center as defined in RCW 35.57.020 known as the
"Edmonds Centre for the Arts" (the "Regional Center").
1.2 In 2005, the Parties entered into the First Amendment To Interlocal Agreement For
Development of the Edmonds Centre For The Arts to extend the required operational date to
March 31, 2007.
1.3 The County PFD, under the authority of RCW 82.14.390, has imposed a sales and
use tax (the "Sales and Use Tax"), a portion of which the County PFD has allocated and agreed to
contribute through intergovernmental project payments to the payment of debt service on the bonds
issued to finance the Regional Center in accordance with and subject to the terms and conditions
of the Interlocal Agreement, including without limitation, in accordance with the schedule
contained in Exhibit `B-I" of the Interlocal Agreement, which payments extend to December 2026
(the "Tier I Allocation").
1.4 The County PFD entered into similar interlocal agreements to provide funding for
three other regional centers, which were recorded with the Auditor of the County under recording
numbers 20021160349, 200212260514, and 200312260486, pursuant to which the County PFD
allocated and committed contributions from the Sales and Use Tax for the payment of debt service
on the respective bonds issued to finance the development thereof (when added to the Tier I
Allocation, the "Aggregate Tier 1 Allocations"), which Aggregate Tier 1 Allocations are in a fixed
amount allocated prior to the date of this ordinance.
FG:53721647.1
1.5 On March 2, 2009, the Parties amended the Interlocal Agreement through
Addendum No. I to provide for additional allocation of the Sales and Use Tax that exceeded the
Aggregate Tier 1 Allocations and created Aggregate Tier 2 Allocations to the four regional centers.
1.6 Pursuant to Chapter 164, Laws of 2017, the Legislature extended the time period
for the Sales and Use Taxes imposed under RCW 82.14.390 from a maximum 25-year term to a
maximum 40-year term.
1.7 On July 19, 2018, the Board of Directors of the County PFD determined that the
Aggregate Tier 2 Allocations, as previously allocated, should be extended through the additional
funding years of 2026 through 2041, subject to applicable terms, and the Board of Directors
approved a revised allocation of the Sales and Use Tax revenue to reflect the 40-year full term of
the Sales and Use Taxes including the extended period authorized in the 2017 legislation, which
such Board action was incorporated into a Board Resolution on October 25, 2018.
1.8 The Parties amended the Interlocal Agreement through Addendum No. 2 to the
Interlocal Agreement ("Addendum No. 2") to provide for the extension of the time period for the
Tier 2 Allocations and specify the certain terms that the Board directed as part of the extension of
Tier 2 Allocations.
1.9 On January 31, 2020, the United States Department of Health and Human Services
Secretary declared a public health emergency for COVID-19. On February 29, 2020, Governor
Jay Inslee proclaimed a state of emergency within the State of Washington due to COVID-19. On
March 1, 2020, the President of the United States proclaimed that the COVID-19 outbreak in the
United States constitutes a national emergency. On March 4, 2020, Snohomish County Executive
Dave Somers proclaimed a state of emergency within Snohomish County due to COVID-19. On
March 4, 2020, the Snohomish County Health Officer declared a public health emergency in
Snohomish County due to COVID-19. On March 10, 2020, the Snohomish County Health District
Board of Health declared a public health emergency. On March 11, 2020, the Snohomish County
Health Officer reduced large gathering limits to 250 people and placed restrictions on gatherings
of fewer than 250 attendees. On March 16, 2020, Governor Jay Inslee mandated a two week
closure of all restaurants, bars, entertainment and recreational facilities, and reduced large
gathering limits to 50 people.
1.10 As a result of the above -described responses to COVID-19, the City PFD has
suffered a significant decrease in revenue. This revenue decrease is anticipated to continue into the
foreseeable future, as upcoming events continue to be cancelled.
1.11 To assist the City PFD in meeting its financial obligations during this challenging
time, the Parties desire to amend the Interlocal Agreement to provide for the early distribution of
the Tier 2 Allocation distributions currently scheduled for May 1, 2020 and November 1, 2020.
Section 2. Approval of Addendum No. 3. The form of Addendum No. 3 to Interlocal
Agreement for Development of the Edmonds Centre for the Arts attached as Exhibit A and
incorporated by this reference ("Addendum No. 3") is approved, and the Mayor is authorized and
directed to execute and deliver Addendum No. 3 on the City's behalf.
0
Section 3. Authorization and Ratification. The Administrative Services Director, the
Mayor, and the other appropriate officers of the City are authorized and directed to take any actions
and to execute such documents as in their judgment may be necessary or desirable to carry out the
terms of, and complete the transactions contemplated in connection with, this ordinance and the
Interlocal Agreement, as amended by the First Amendment thereto, Addendum No 1 thereto,
Addendum No. 2, and Addendum No. 3. All actions previously taken in furtherance of and not
inconsistent with the provisions of this ordinance are hereby ratified and confirmed in all respects.
Section 4. Effective Date. This ordinance shall take effect and be in full force from
and after its passage and five days following its publication as required by law.
PASSED by the City Council at a regular open public meeting thereof this 7t" day of April,
2020.
MAYOR MIKE NELSON
ATTEST/AUTHENTICATED:
C LER SCOTT SEY
APPROVED AS TO FORM:
FOSTER GARVEY P.C., BOND COUNSEL
FILED WITH THE CITY CLERK: April 3, 2020
PASSED BY THE CITY COUNCIL: April 7, 2020
PUBLISHED: April 10, 2020
EFFECTIVE DATE: April 15, 2020
ORDINANCE NO.: 4182
EXHIBIT A
Form of Addendum No. 3
ADDENDUM NO.3 TO INTERLOCAL AGREEMENT FOR
DEVELOPMENT OF THE EDMONDS CENTRE FOR THE ARTS
This Addendum No. 3 ("Addendum No. 3") is made and entered into as of the day of
April, 2020 among the City of Edmonds, a city duly organized and existing under and by virtue of
the laws of the State of Washington ("City"); the Snohomish County Public Facilities District, a
municipal corporation duly organized and existing under the laws of the State of Washington
("County PFD"); Snohomish County, a political subdivision of and duly organized and existing
under the laws of the State of Washington and the Charter of Snohomish County ("County"); and
the Edmonds Public Facility District, a municipal corporation duly organized and existing under
and by virtue of the laws of the State of Washington, established by the City of Edmonds ("City
PFD)". The City, County PFD, County, and City PFD are collectively referred to herein as the
"Parties".
RECITALS
A. The Parties entered into an Interlocal Agreement dated November 4, 2002, which
was amended in 2005 by the First Amendment to the Interlocal Agreement for Development of
the Edmonds Centre for the Arts ("Interlocal Agreement") to provide for the development of a
Regional Center as defined in RCW 35.57.020 known as the "Edmonds Centre for the Arts"
("Regional Center").
B. The County PFD, under the authority of RCW 82.14.930, has imposed a Sales and
Use Tax ("Sales and Use Tax"), a portion of which the County PFD has allocated and agreed to
contribute through intergovernmental project payments to the payment of debt service on the bond
issued to finance the Regional Center in accordance and subject to the terms and conditions of the
Interlocal Agreement ("Tier 1 Allocation").
C. The County PFD entered into similar interlocal agreements to provide funding for
three (3) other regional centers pursuant to which the County PFD has allocated and committed
contributions from the Sales and Use Tax for the payment of debt service on the respective bonds
issued to finance the development of the regional centers thereof, which when added to the Tier 1
Allocation shall be referred to herein as the "Aggregate Tier 1 Allocations." The Aggregate Tier
1 Allocations are in a fixed amount.
D. Thereafter, the County PFD experienced actual Sales and Use Tax revenue
collection substantially in excess of the Aggregate Tier 1 Allocations. As a result, the County PFD
allocated additional Sales and Use Tax revenues among the Regional Center and the three (3) other
regional centers ("Aggregate Tier 2 Allocations").
E. On February 25, 2009, the Parties to the Interlocal Agreement entered into
Addendum No. 1 to the Interlocal Agreement ("Addendum No. 1") whereby the County PFD
allocated a portion of the Aggregate Tier 2 Allocations to the City PFD ("Tier 2 Allocation").
Addendum No. 1 provides for semi-annual payments of the Tier 2 Allocation on May 1 and
November 1 of every year so long as the bond indebtedness incurred to finance the Regional Center
remains outstanding.
F. Pursuant to legislative authorization that extended the time period for the Sales and
Use Taxes imposed under RCW 82.14.390 from a maximum 25-year term to a maximum 40-year
term, the Parties amended the Interlocal Agreement through Addendum No. 2 to the Interlocal
Agreement ("Addendum No. 2") which became effective on the day of , 2020.
G. On January 31, 2020, the United States Department of Health and Human Services
Secretary declared a public health emergency for COVID-19. On February 29, 2020, Governor
Jay Inslee proclaimed a state of emergency within the State of Washington due to COVID-19. On
March 1, 2020, the President of the United States proclaimed that the COVID-19 outbreak in the
United States constitutes a national emergency. On March 4, 2020, Snohomish County Executive
Dave Somers proclaimed a state of emergency within Snohomish County due to COVID-19. On
March 4, 2020, the Snohomish County Health Officer declared a public health emergency in
Snohomish County due to COVID-19. On March 10, 2020, the Snohomish County Health District
Board of Health declared a public health emergency. On March 11, 2020, the Snohomish County
Health Officer reduced large gathering limits to 250 people and placed restrictions on gatherings
of fewer than 250 attendees. On March 16, 2020, Governor Jay Inslee mandated a two week
closure of all restaurants, bars, entertainment and recreational facilities, and reduced large
gathering limits to 50 people. On March 23, 2020, Governor Jay Inslee mandated a closure of all
non -essential businesses and ordered all people within the State of Washington to cease leaving
their home except in limited circumstances.
H. As a result of the above -described responses to COVID-19, the City PFD has
suffered a significant decrease in revenue. This revenue decrease is anticipated to continue into
the foreseeable future, as upcoming events continue to be cancelled.
I. To assist the City PFD in meeting its financial obligations during this challenging
time, the Parties desire to amend the Interlocal Agreement by this Addendum No. 3 to provide for
the early distribution of the Tier 2 Allocation distributions currently scheduled for May 1, 2020
and November 1, 2020.
NOW, THEREFORE, the Parties hereby agree as follows:
AGREEMENT
1. The Tier 2 Allocation distribution schedule as described in Addendum No. 1 shall
be amended as follows:
a. Distribution of May 1, 2020 Tier 2 Allocation shall occur within seven (7)
days of the Effective Date (as defined below) of this Addendum No. 3.
b. Distribution of the November 1, 2020 Tier 2 Allocation may occur on July
31, 2020, if the Snohomish County Public Facilities District Board of
Directors determines it is financially feasible after reviewing the revenue
available for Tier 2 Allocation.
2. Except as otherwise stated, all other terms and conditions of the Tier 2 Allocation
distribution schedule as described in Addendum No. 1 shall remain in full force and effect.
3. This Addendum No. 3 shall become effective upon execution by each party and
filing with the Snohomish County Auditor as provided in RCW 39.34.040.
[Remainder of Page Intentionally Left Blank]
SNOHOMISH COUNTY PUBLIC FACILITIES
DISTRICT
By:..tcven Shelton, P sident
Date: 9� l ?-' I S o
EDMONDS PUBLIC FACILITIES
DISTRICT
By: ily� Chair of the Board of
Directors
Date: L� 4
CITY OF EDMONDS
ram- :�_ _ f ��-�•-1 �
By- 'Mike Nelson, Mayor
Date:
Attested:
By: City Clerk
Approved as to Form:
By: City Attorney
SNOHOMISH COUNTY
By: Dave Somers, County Executive
Date:
Everett Daily Herald
Affidavit of Publication
State of Washington }
County of Snohomish } ss
Dicy Sheppard being first duly sworn, upon
oath deposes and says: that he/she is the legal
representative of the Everett Daily Herald a
daily newspaper. The said newspaper is a legal
newspaper by order of the superior court in the
county in which it is published and is now and
has been for more than six months prior to the
date of the first publication of the Notice
hereinafter referred to, published in the English
language continually as a daily newspaper in
Snohomish County, Washington and is and
always has been printed in whole or part in the
Everett Daily Herald and is of general
circulation in said County, and is a legal
newspaper, in accordance with the Chapter 99
of the Laws of 1921, as amended by Chapter
213, Laws of 1941, and approved as a legal
newspaper by order of the Superior Court of
Snohomish County, State of Washington, by
order dated June 16, 1941, and that the annexed
is a true copy of EDH896150 ORD. 4182, 4183 as
it was published in the regular and entire issue
of said paper and not as a supplement form
thereof for a period of 1 issue(s), such
publication commencing on 04/10/2020 and
ending on 04/10/2020 and that said newspaper
was regularly distributed to its subscribers
during all of said period.
The amount of the fee for such publication is
$41.6 .
Subscribed and sworn before- me on this
�� i
day, of
i
Notary Public in and for the State of
Washington.
City of Edmonds -LEGAL ADS 114101416
SCOTT PASSEY
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Classified Proof
ORDINANCE 5 M A Y
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On the 7M day of Apr}I, 2020, Iha City Council of the City of
Edmonds, pasaetl then
flrulnances, the summaries of said
ordinances cdnstailrip bf filWs Oro ppWded as follows:
ORDINANCE _Ng. A182
AN ORDINANCE THE ITY OF EDMONDS.
WASHINGTON. AUTHORIZING THE EXECUTION AND
DELIVER! OF ADDENDUM NO. 3 TO INTERLOCAL
AGREEMENT FOR DEVELOPMENT OF THE EDMONDS
CENTRE FOR THE ARTS; AUTHORIZING CERTAIN OTHER
ACTIONS IN CONNECTION THEREWITH: AND FIXING A
TIME WHEN THE SAME SHALL RE EFFECTIVE
ORDINANCE NO 4163
AN ORDINANCE—OF--TRr--MY OF EDMONDS,
WA$HINGTON, AMENDING ORDINANCE NO. 4174 AS A
RESULT OF UNANTICIPATED TRANSFERS AND
EXPENDITURES OF VARIOUS FUNDS, AND FIXING A
TIME WHEN THE SAME SHALL BECOME EFFECTIVE.
The lull text of these OrdnanceS wall be mailed upon request.
DATED INS 7I11 Day oI Apfn. 2020.
CITY CLERK, SCOTT PASSEY
Published: April 10, 2020. EOH896150
Proofed by Sheppard, Dicy, 04/13/2020 11:59:53 am Page: 2