FINAL 2024 0409 Council Agenda PacketMoses Lake City Council
Dustin Swartz, Mayor | Judy Madewell, Deputy Mayor | Don Myers, Council Member | Mark Fancher, Council Member
Deanna Martinez, Council Member | David Skaug, Council Member | Victor Lombardi, Council Member
Tuesday, April 9, 2024
Moses Lake Civic Center – 401 S. Balsam or remote access*
Regular Meeting Agenda
Call to Order – 6:30 p.m.
Roll Call
Pledge of Allegiance
Approval of the Agenda
Citizen’s Communications **
Summary Reports:
Mayor’s Report
-Library Week Proclamation
-Airport Commission Appointment
-Kiwanis Mayor’s Prayer Breakfast
Additional Business
City Manager’s Report
#1 Consent Agenda pg 3 Motion
All items listed below are considered to be routine and will be enacted by one motion. There will be
no separate discussion of these items unless a Council Member requests specific items to be removed
from the Consent Agenda for discussion prior to the time Council votes on the motion to adopt the
Consent Agenda.
a.City Council Meeting Minutes Dated March 12 and March 26, 2024
b.Claims and Payroll
c.2004 Water/Sewer Revenue Bonds
d.White Bikes Concessionaire Agreement
e.Spring Festival Fee Waivers
f.Aspect Consulting Well 20 Source Amendment
COML Council Packet 4-9-24, Page 1 of 222
April 9, 2024, City Council Meeting Page 2
Consent Cont’d…
g.Accept WSDOT Sandy Williams Communities Program Grant
h.Laguna Park Short Plat Developer Agreement
i.SR-17/Stratford Rd Pedestrian Project Consultant
j.Accept Additional Funds for Yonezawa Improvements
k.Accept Potable Water Reservoir Inspection GC2024-191
Old Business - None scheduled
New Business
#2
Motion
#3
Motion
pg 209
Downtown Parking Regulations Ordinance 3046
Presented by Kevin Fuhr, City Manager
Summary: Council to review and consider adoption
pg 214
Cost of Service Rate Study – Water and Wastewater
Presented by Madeline Prentice, Finance Director
Summary: Council to review and consider approval
Administrative Reports
Council Committee Reports
Adjournment
Next Regular Council Meeting is scheduled for April 23, 2024
NOTICE: Individuals planning to attend the in-person meeting who require an interpreter or special
assistance to accommodate physical, hearing, or other impairments, need to contact the City Clerk
at (509) 764-3703 or Deputy City Clerk at (509) 764-3713 at least 24 hours in advance of the meeting.
* Remote Options:
#1 MS Teams App or Online Click here to join the meeting
Meeting ID: 233 988 850 71 Passcode: 6MoNgd Click Here to Download Teams | Join on the web
Or #2 MS Teams by phone (audio only) +1 509-707-9401,,790625018# Phone ID: 790 625 018#
Or #3 for Regular Meeting at 6:30 - Youtube Live https://www.youtube.com/@MosesLakeCityCouncil/streams
** In person Citizen Comment or Public Hearing Comments form needs to be turned in prior to start of each
meeting. The 5-minute time per speaker may be reduced to allow a maximum period of 30-minutes for
citizens who have signed up to speak. Click this link for remote speaker request forms which must be
completed by 3 p.m. on the day of the meeting. To be heard remotely during the live meeting – select the
Teams option 1 above.
COML Council Packet 4-9-24, Page 2 of 222
MOSES LAKE CITY COUNCIL March 12, 2024
STUDY SESSION
Jim Nelson, Managing Director, Public Finance at DA Davidson provided a presentation to Council regarding City Project Bond Funding. He reviewed types of bonds, the city’s debt capacity, ratings, bundling, and Tax Increment Financing (TIF) program. City Manager Kevin Fuhr anticipates 20 million dollars’ worth of water and sewer projects in the next few years in
addition to the TIF proposal. A full hour workshop with Council will be scheduled in the next
few months.
CALL TO ORDER
The regular meeting of the Moses Lake City Council was called to order at 6:35 p.m. by Mayor Swartz in the Council Chambers of the Civic Center with audio remote access. Special notice for
remote attendance and citizen comment were posted on the meeting agenda.
ROLL CALL
Present: Mayor Swartz; Deputy Mayor Madewell; Council Members Lombardi, Fancher, Martinez, Myers, and Skaug.
PLEDGE OF ALLEGIANCE
Deputy Mayor Madewell led the Flag Salute.
AGENDA APPROVAL
Action taken: Council Member Martinez moved to approve the Agenda as presented, second by Council Member Myers. The motion carried 7 – 0.
PRESENTATION
Firefighter Oath and Badge
Fire Chief Brett Bastian administered the oath of office to Firefighter Fallon Walls, followed with a ceremonial badging by Battalion Chief Dave Holle.
CITIZEN’S COMMUNICATION
Food Vendors – Cedric Eklund, Moses Lake, requested regulations prohibit oversaturated locations, and address underground electrical and ADA compliant lots. Elisia Dalluge, Moses
Lake, asked that food truck licenses be processed in seven days. She mentioned an email sent to Katherine and thanked everyone for participating in updating these regulations. Amy Dalluge, Moses Lake, agreed with Cedric’s comments and suggested options for generators and electrical pedestals.
SUMMARY REPORTS
CITY MANAGER’S REPORT
Agenda Order – Staff presentations were previously listed under the City Manager’s Report and will now be under a Presentation heading to precede Citizen Comment heading.
CONSENT AGENDA
#1 a. City Council meeting minutes dated February 27, 2024b. Electronic Transfer: 340 - 356 - $2,504,827.08
COML Council Packet 4-9-24, Page 3 of 222
CITY COUNCIL MINUTES –March 12, 2024
pg. 2
Checks: 164424 - 164544 - $337,756.25 Payroll Checks: 03- 01-2024 PR, #66055 - 66066 - $7,927.32 Electronic Payments: 03-01-2024 Direct Deposit: - $617,062.19
c.Gambling Regulation Update Ordinance 3044
d. Airport Property Surplus Resolution 3974e.Petty Cash Increase for Surf ‘n Slide Water Park Resolution 3975f.Grant County Emergency Housing Fund Amendmentg. Grant County ARPA Beneficiary Agreement
h. Concession Contract Awards
i.Airport Lease Rate Amendment
Action taken: Council Member Martinez moved to approve the Consent Agenda as presented, second by Council Member Lombardi. The motion carried 7 – 0.
OLD BUSINESS
#2 Food Truck Regulations Amendment Ordinance 3045 Community Development Director Kirsten Peterson reviewed the changes for single food truck locations, addition of special events, and addition of food truck courts with a
preapplication process. Council and staff discussed questions needing to be addressed that were listed in the written report. An updated draft will be presented at the next meeting.
COUNCIL COMMUNICATIONS AND REPORT
Council Member Martinez attended the Ad Hoc Homeless Committee where they discussed
funding available from ARPA Beneficiary Funding through the Grant County Commissioners to replace the temporary homeless shelters with new pallet shelters at the Sleep Center.
Council Member Lombardi attended a presentation at the Port of Moses Lake regarding water and explosive contaminant biodynamic recycling, he shared a projection of electric school bus
production, acknowledged City Manager Kevin Fuhr and engineering administration for work with the Airport Commissioners and tenants, and he thanked Finance staff for work to obtain information from existing software to address the water usage and rates.
EXECUTIVE SESSION
Mayor Swartz called an Executive Session from 7:45 p.m. to 8:00 p.m. to discuss potential litigation pursuant to RCW 42.30.110(1) subsection (i).
ADJOURNMENT
The regular meeting was adjourned at 8:00 p.m.
______________________________________ Dustin Swartz, Mayor
ATTEST____________________________
Debbie Burke, City Clerk
COML Council Packet 4-9-24, Page 4 of 222
MOSES LAKE CITY COUNCIL March 26, 2024
STUDY SESSION Downtown Parking Regulations Mallory Miller, Executive Director of the Downtown Moses Lake Association, discussed the customer and patron parking issues for downtown business. She offered solutions to changing the diagonal parking to a 4-hour limit, marking parallel parking spaces, and a potential parking
pass for downtown business employees. She also requested that the decorative lights be changed to LED to improve safety for employees walking to their cars at night. Elisia Dalluge, Moses Lake, requested a moratorium on parking enforcement downtown, a similar action taken by the City of Yakima. Council requested staff bring back amended regulations for parallel parking on Third Avenue between Division St. and Ash St. and, Third Avenue 100 ft west of Ash St to
remain at 2-hour limit, while all diagonal spaces and the remainder of downtown be moved to a 4-hour limit. Council also requested staff obtain costs for the decorative lights to be LED.
CALL TO ORDER
The regular meeting of the Moses Lake City Council was called to order at 6:33 p.m. by Mayor
Swartz in the Council Chambers of the Civic Center with audio remote access. Special notice for remote attendance and citizen comment were posted on the meeting agenda.
ROLL CALL
Present: Mayor Swartz; Deputy Mayor Madewell; Council Members Lombardi, Fancher,
Martinez, Myers, and Skaug.
PLEDGE OF ALLEGIANCE
Council Member Lombardi led the Flag Salute.
AGENDA APPROVAL
Action taken: Council Member Martinez moved to approve the Agenda as presented, second by Council Member Lombardi. The motion carried 7 – 0.
PRESENTATION
Travel Demand Model Jeff Pierson with Fehr and Peers presented a slide deck to illustrate what a travel demand model software was and how it can be used for the future development of roadways and land use in the City through the year 2050.
CITIZEN’S COMMUNICATION
Food Truck Ordinance – Elisia Dalluge, Moses Lake, requested Council consider a shorter process than the proposed 21-day time frame for licensing.
SUMMARY REPORTS
MAYOR’S REPORT
Sister City Exchange Open House There is going to be an Open House on April 17 at 6 pm at Vanguard Academy for those interested in the Yonezawa Sister City Student Exchange Program.
COML Council Packet 4-9-24, Page 5 of 222
CITY COUNCIL MINUTES – March 26, 2024
pg. 2
Water Bills Mayor Swartz thanked Utilities Manager Jessica Cole for creating a table for change of water rates and gave a few examples of difference in billing based on certain usage. He
encouraged any citizens with questions to come and see him after the meeting.
CONSENT AGENDA
#1 a. Electronic Transfer: N/AChecks: 164545 - 164769 - $1,136,076.01 Payroll Checks: 03- 15-2024 PR, #66067 - 66075 - $6,977.58
Electronic Payments: 03-15-2024 Direct Deposit: - $647,799.01 b.moved off consent to be discussed separatelyc. Dept. of Commerce Irrigation Grantd. Division Lift Station Services GC 2023-093e. Well 20 Declaration of Covenant
f.Verizon Cell on Wheels Leaseg. Mason’s Concession Agreement
Action taken: Council Member Fancher moved to approve the Consent Agenda as amended,
second by Council Member Martinez. The motion carried 7 – 0.
#1b Master Services Agreement for Pallet Shelters Council Member Skaug asked for clarification on the funding, maintenance, and electric costs for the new units. Community Development Director Kirsten Peterson noted that the funding came from the ARPA grant that was approved at the last council meeting.
She talked about how the new units are made for this type of use, will be easier to clean, and easier to maintain. She also explained that staff are researching costs to have electricity for the heating and air conditioning in these units. Additionally, new bathroom/shower units are included in this purchase which will eliminate cost of leasing these units for the sleep center.
Action taken: Council Member Martinez moved to accept the Master Services Agreement for Pallet Shelters, second by Council Member Myers. The motion carried 7 – 0.
OLD BUSINESS
#2 Food Truck Regulations Amendment Ordinance 3045 Staff updated the Ordinance based on prior discussion, requested elimination of overnight parking restriction, and addition of health department requirements for bathrooms. Elisia Dalluge, Moses Lake, reiterated her desire to see the 21-day time frame for business
licensing be shortened. Amy Dalluge, Moses Lake, was okay with the time frame for
business licensing, and requested that the City remain consistent with outdoor seating and ADA compliance. Cedric Eklund, Moses Lake, thanked Council for working through the updates and requested that ADA bathrooms be added to the local Code.
Action taken: Council Member Martinez moved to adopt Ordinance 3045 with the removal of
overnight parking and the addition of health department requirements, second by Council
Member Fancher. The motion carried 7 – 0.
COML Council Packet 4-9-24, Page 6 of 222
CITY COUNCIL MINUTES – March 26, 2024
pg. 3
NEW BUSINESS
#3 Limited English Proficiency Plan Resolution 3976
The Limited English Proficiency Plan was drafted, in part, from a 30-day employee survey to ensure the proficiency plan would be accurate to the City’s needs. This Plan is a requirement for Federal Funding, and staff previously implemented parts of the Plan, such as translation of documents into Spanish.
Action taken: Council Member Martinez moved to adopt Resolution 3976 as presented, second
by Council Member Fancher. The motion carried 7 – 0. ADMINISTRATIVE REPORTS
Tax Increment Financing (TIF) Update There will be a public meeting on April 17 at 11 am for the first public briefing. Council
are not required to attend, but if they are interested, they need to let the Clerk’s office or
City Manager Kevin Fuhr know so that a notice of potential quorum can be posted. The second public briefing will be held in May, at a date to be determined. Infrastructure Grant Request
The appropriation grant application for Senator Cantwell’s office is due on Monday with the letters of support from local industries, businesses, and builders. COUNCIL COMMUNICATIONS AND REPORTS
Council Member Martinez relayed that Harold Crouse is stepping down from the Watershed
Council and that they have a potential replacement in efforts to avoid interruptions in their work. Council Member Fancher attended the Economic Development Committee meeting last week, and there is a lot of activity going on in the community.
Council Member Lombardi reported that the PUD is trying to get more power to the Port of Moses Lake for their continued growth. He thanked Parks, Recreation and Cultural Services Director Doug Coutts for his work on the Silver Sneakers contract for the Larson Recreation Center. He also mentioned the chipping program that begins April 1. He thanked Judy Warnick, Tom Dent and Alex Ibarra for the three bills that they passed to speed up the process on building,
one of which gives Cities and Counties more control on mapping wildfire zones, which will apply to Grant County. He also noted that Governor Jay Inslee has signed an innovative bill to help deter graffiti.
ADJOURNMENT
The regular meeting was adjourned at 8:30 p.m. ______________________________________
Dustin Swartz, Mayor
COML Council Packet 4-9-24, Page 7 of 222
CITY COUNCIL MINUTES – March 26, 2024
pg. 4
ATTEST____________________________ Debbie Burke, City Clerk
COML Council Packet 4-9-24, Page 8 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Kevin Fuhr, City Manager 15291
Madeline Prentice, Director Finance
4/9/2024 Consent Agenda
Disbursement Report since March 26, 2024
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
1,121,550.52$1,121,550.52$0.00$
Approve payment of claims as presented.
The following amounts were budgeted, and sufficient funds were available to cover these payments.
Electronic Transfer: N/A
Checks: 164770 - 164943 - $481,744.16
Payroll Checks: 03- 29-2024 PR, #66076 - 66087 - $5,200.02
Electronic Payments: 03-29-2024 Direct Deposit: - $634,606.34
Vouchers - 04.09.2024.pdf 114.3KB
COML Council Packet 4-9-24, Page 9 of 222
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
RCW 42.24 governs the process for audit and review of claims and payroll payments for the City. RCW
42.24.180 requires the review and approval of all payments at a regularly scheduled public meeting on at least a
monthly basis. The State Budgeting, Accounting and Reporting Systems (BARS) Manual outlines the above
format for approval by the City Council.
RCW 42.24.080 requires that all claims presented against the City by persons furnishing materials, rendering
services or performing labor must be certified by the appropriate official to ensure that the materials have been
furnished, the services rendered, or the labor performed as described, and that the claims are just, due and
unpaid obligations against the City.
RCW 42.24.180 allows expedited processing of the payment of claims when certain conditions have been met.
The statute allows the issuance of warrants or checks in payment of claims before the legislative body has acted
to approve the claims when: (1) the appropriate officers have furnished official bonds; (2) the legislative body
had adopted policies that implement effective internal control; (3) the legislative body has provided for review of
the documentation supporting the claims within a month of issuance; and (4) that if claims are disapproved, they
shall be recognized as receivables and diligently pursued.
The City meets all these conditions.
To comply with the requirements, Finance staff schedule payment of claims and payroll for semi-monthly Council
approval on the Consent Agenda. The payments listed in the schedule cover all claims and payroll payments
during the period prior to the date of the Council meeting.
All payments made during this period were found to be valid claims against the City. Details are attached and
any questions should be directed to the City Manager or Finance Director.
The City's internal controls include certification of the validity of all payments by the appropriate department prior
to submission for payment. The Finance Director has delegated authority for the examination of vouchers and
authorization of payments to the Finance, Accounts Payable, and Payroll staff. All payments are reviewed and
validated. The Finance Division regularly reviews it processes to ensure appropriate internal controls are in
place.
Options and Results
Approve
N/A
Staff would recognize claims as receivables and pursue collections.
COML Council Packet 4-9-24, Page 10 of 222
TOTALS BY FUND:
FUND NO FUND NAME
Est. Fund Bal.
03/31/24 AMOUNT
Est. Fund Bal.
04/09/24
001 GENERAL FUND 10,742,474$ 164,478.62 10,577,995
102 TOURISM 1,692,170$ - 1,692,170
103 GRANTS AND DONATIONS 1,110,575$ 24,640.37 1,085,935
105 ARPA 3,381,602$ - 3,381,602
110 HOMELESS SERVICES 505,756$ 7,738.33 498,018
111 OPIOID ABATEMENT 50,358$ - 50,358
112 PUBLIC ARTS FUND 49,824$ - 49,824
114 PATHS/TRAILS 93,361$ - 93,361
116 STREET 531,900$ 2,905.13 528,995
119 STREET REPR/RECON 4,151,458$ - 4,151,458
170 TRANSPORTATION BENEFIT DISTRICT 1,543,034$ - 1,543,034
282 LOCAL BORROWING 984,872$ - 984,872
286 REFUNDING GO BONDS 2015 184,854$ - 184,854
314 PARK & RECREATION IMPROVEMENTS 672,340$ - 672,340
315 PARK MITIGATION CAPITAL PROJECTS 330$ - 330
316 COMMUNITY SERVICES CENTER -$ - -
320 FIRE MITIGATION FUND 754,112$ - 754,112
322 WATER REMIDIATION 1,763,864$ 305.50 1,763,558
410 WATER/WASTEWATER 7,882,416$ 81,528.09 7,800,888
450 2011 BOND FUND 10,304$ - 10,304
451 2011 BOND FUND - RESERVE 567,600$ - 567,600
452 2004 BOND FUND 6,017$ - 6,017
453 2004 BOND FUND - RESERVE 701,500$ - 701,500
471 WATER RIGHTS 1,578,642$ - 1,578,642
477 WATER SEWER CONSTRUCTION 4,439,056$ 85,143.16 4,353,912
485 PWTF WATER-WASTEWATER DEBT SVS 20,196$ - 20,196
487 2015 GO BONDS REDEMPTION 9,508$ - 9,508
490 SANITATION 2,160,797$ 1,843.03 2,158,954
493 STORM WATER 863,974$ 37,655.90 826,318
495 AIRPORT 77,309$ 6,084.20 71,224
498 AMBULANCE 456,720$ 17,917.08 438,803
501 UNEMPLOYMENT COMPENSATION INSURANCE 134,947$ - 134,947
503 SELF-INSURANCE 288,504$ - 288,504
517 CENTRAL SERVICES 966,370$ 33,919.25 932,451
519 EQUIPMENT RENTAL 1,998,512$ 8,844.75 1,989,667
528 BUILDING MAINTENANCE 1,982,477$ 5,979.01 1,976,498
611 FIRE PENSION 426,272$ 2,761.74 423,510
623 DEPOSIT 263,646$ - 263,646
631 STATE 33,557$ - 33,557
TOTAL 53,081,206$ 481,744.16$ 52,599,461.92$
City of Moses Lake
Tabulation of Claims Paid-Summary by Fund
Council Meeting Date- 04/09/2024
COML Council Packet 4-9-24, Page 11 of 222
Check Name Check Amount Check Date Invoice Description
164770 Jamie Lamb 166.00 03/21/2024 WOW Conference Per Diem
164771 Kyle McCain 225.00 03/21/2024 WSTOA TRT Training
164772 A & H Printers Inc 74.23 03/22/2024 Stamp
164773 Abc Hydraulics 351.76 03/22/2024 Hydraulic Cylinder Rebuild
164774 Active Network LLC 2,048.76 03/22/2024 ActiveNet Connect
164775 Amazon Capital Services, Inc.1,119.77 03/22/2024 Amazon February 2024 Fleet
164776 Anatek Labs, Inc.780.00 03/22/2024 Sample Testing
164777 AT&T Mobility II, LLC 1,852.71 03/22/2024 First Responder Lines
164778 Brooklyn Holton 3,452.05 03/22/2024 LEP Pro Services
164779 Bud Clary Ford LLC 39.66 03/22/2024 Bracket
164780 Busby International 867.20 03/22/2024 Water Meter Covers
164781 Cascade Natural Gas Corp 1,263.82 03/22/2024 Natural Gas Services
164782 Central Machinery Sales Inc 1,353.48 03/22/2024 Gutter Brooms
164783 City-County Communications 400.00 03/22/2024 Lynn Membership 2024
164784 Coaxsher, Inc.962.48 03/22/2024 Uniform PPE Dual Compliance Pants
164785 Cobies Fine Dry Cleaning 50.11 03/22/2024 February Dry Cleaning
164786 Consolidated Disposal Service 66.96 03/22/2024 Professional Services
164787 Copiers Northwest Inc 888.53 03/22/2024 Equipment Contract Fees
164788 Criminal Justice Training Commission 500.00 03/22/2024 Training Class Fee
164789 Databar Inc 1,919.38 03/22/2024 Utility Billing Invoices
164790 Dell Marketing 2,085.16 03/22/2024 Latitude & Base
164791 EMS Technology Solutions, LLC 552.84 03/22/2024 Operating Supplies
164792 Evergreen StormH2O 35,958.62 03/22/2024 Stormwater Comp Plan
164793 Faber Industrial Supply 802.44 03/22/2024 General Shop Supplies
164794 Galls LLC 751.64 03/22/2024 Uniform Pieces
164795 Grainger Parts Operations 467.96 03/22/2024 Parts
164796 Ground Works Three, LLC 5,041.67 03/22/2024 Rental @ Sleep Center
164797 Hach Company 263.47 03/22/2024 Reagent Set
164798 Helena Agri-Enterprises LLC 1,730.66 03/22/2024 Pesticide Supplies
164799 Home Depot Pro (Supplyworks)2,204.43 03/22/2024 Supplies
164800 Ibs Inc 18.04 03/22/2024 Misc. Parts
164801 Industrial Software Solutions 2,926.80 03/22/2024 SCADA Software
164802 Inland Pipe & Supply Company 1,908.24 03/22/2024 Misc. Parts
164803 Jerrys Auto Supply 701.91 03/22/2024 Auto Parts
164804 Jims Lock Service LLC 53.33 03/22/2024 Key Blanks
164805 Katherine Kenison, PS 19,976.00 03/22/2024 City Atty. Services February 2024
164806 Kelley Create 812.95 03/22/2024 Equipment Contract Fees
164807 L N Curtis & Sons 731.04 03/22/2024 Operating Supplies
164808 Lad Irrigation Company Inc 3,227.52 03/22/2024 SNS Pump Maintenance
164809 Lakeside Disposal, Inc 25.67 03/22/2024 Recycling @ Fire
164810 Life -Assist, Inc.9,817.21 03/22/2024 Medical Supplies
164811 McKesson Medical-Surgical 642.64 03/22/2024 Medical Supplies
164812 Moon Security Services Inc 171.22 03/22/2024 Museum Security
164813 Moses Lake Steel Supply 1.63 03/22/2024 Lauzier Supplies
164814 Multi Agency Comm Center E911 52,871.53 03/22/2024 February 2024 Law Calls
City of Moses Lake
Checks Issued with Summary Description
For April 9th, 2024 Council Meeting
COML Council Packet 4-9-24, Page 12 of 222
164815 NFPA 175.00 03/22/2024 Membership Dues for Beach
164816 Norco Enterprises Inc 484.67 03/22/2024 Operating Supplies
164817 North 40 Outfitters 39.15 03/22/2024 General Parks Supplies
164818 North Central Laboratories 464.22 03/22/2024 QA/QC Standard
164819 Northwest Barricades & Signs, LLC 51.49 03/22/2024 Safety Gear
164820 Omwbe 971.28 03/22/2024 Political Subdivision Contributions
164821 Pasco Tire Factory, INC 78.05 03/22/2024 Tire Disposal
164822 Platt Electric 482.34 03/22/2024 Misc. Parts
164823 Pud Of Grant County 16,451.44 03/22/2024 Elec. Services
164824 Pumptech, LLC 7,570.71 03/22/2024 Impeller/Lockscrew/Gasket
164825 Quill Corporation 33.15 03/22/2024 Office Supplies
164826 Richland Research Corporation 579.37 03/22/2024 Free-Flow Blocks
164827 Satellite Industries Inc 31.79 03/22/2024 Portable Toilet Parts
164828 Sebastian Moraga 240.30 03/22/2024 Musuem Pods Translation
164829 Sherwin-Williams 856.46 03/22/2024 Larson/Lauzier Field Paint
164830 Shirtbuilders Inc 321.10 03/22/2024 Safety Gear
164831 Smarsh Inc 23,278.16 03/22/2024 Professional Archive
164832 State Auditors Office 32,795.87 03/22/2024 Financial Audit
164833 Target Solutions Learning 99.99 03/22/2024 Computer Software
164834 Traffic Safety Supply Company 1,043.88 03/22/2024 30"x48" Sign Blanks
164835 Transunion Risk & Alternative 179.40 03/22/2024 February Investigation Costs
164836 Trilogy Medwaste West, LLC 78.00 03/22/2024 Professional Service
164837 Uline 3,905.65 03/22/2024 Equipment
164838 Ups Freight 63.62 03/22/2024 Shipping & Service Fees
164839 UPS Store 2469 44.27 03/22/2024 Shipping
164840 Usps/Pb Postage By Phone 4,000.00 03/22/2024 Postage Meter Refill
164841 Util Undrgrnd Location Center 97.68 03/22/2024 Underground Locates February 2024
164842 Valley Athletics 1,846.06 03/22/2024 Park Baseball Diamond Supplies
164843 VendNovation, LLC 1,300.80 03/22/2024 Software for Inventory Control Machine
164844 Versare Holdings Corporation 3,577.53 03/22/2024 Office Walls - Dollie Boyd
164845 WA State Department of Ecology 6,667.66 03/22/2024 2024 Biosolids Permit Larson WWTP
164846 Water Recovery Services, LLC 85,143.16 03/22/2024 Well CO2 Injection and Rehabilitation
164847 Weaver Exterminating Srvc Inc 99.73 03/22/2024 Rodent Control
164848 Weinstein Beverage Company 120.80 03/22/2024 Water Services
164849 Zoll Medical Corp 943.10 03/22/2024 Small Equipment, Replacement Cords
164850 KaTom Restaurant Supply, Inc 2,866.10 03/25/2024 SNS Griddle
164851 Benjamin Schober 155.00 03/25/2024 Laserfiche Empower 2024
164852 Caleb Martin 156.00 03/25/2024 WSTOA Training 2024
164853 Darrik Gregg 138.00 03/25/2024 Accountable Leadership Training
164854 Heather Kok 58.00 03/25/2024 CROA Conference 2024
164855 James Richmond 148.00 03/25/2024 ACCIS Spring Conference 2024
164856 Joey Barkle 74.00 03/25/2024 Equipment Retrieval Trip
164857 Luke Garrison 155.00 03/25/2024 Truck Academy- Wenatchee
164864 Steven Mugnos 261.00 03/25/2024 Plans Examiner Residential- 2024
164865 Madeline Prentice 30.00 03/25/2024 WPTA Annual Conference 2024
164866 Wendy Parks 30.00 03/25/2024 WTPA Annual Conference 2024
164867 Greg Graffe 148.00 03/25/2024 ACCIS Spring Conference 2024
164868 Anita Heath 99.64 03/27/2024 Refund Utility Overpayment
164869 Hein Brothers, LLC 375.00 03/27/2024 Refund Utility Overpayment
164870 Leonardo Amezola Or 302.10 03/27/2024 Refund Utility Overpayment
COML Council Packet 4-9-24, Page 13 of 222
164871 Linda Spitzer 116.53 03/27/2024 Refund Utility Overpayment
164872 Sandy Point Ventures 60.30 03/27/2024 Refund Utility Overpayment
164873 Scott Tymczyszyn 115.36 03/27/2024 Refund Utility Overpayment
164874 Sheena Cameron Or 154.68 03/27/2024 Refund Utility Overpayment
164875 Brianna Schick 12.42 03/27/2024 Replenish PW Petty Cash
164877 Grant County Mosquito Control #1 4,219.45 03/27/2024 Lease Paid in Full Before Changes
164878 M.S.T.S Lee Gerber 1,864.75 03/27/2024 Lease Paid in Full Before Changes
164879 Mike Brady 100.00 03/27/2024 Museum Speaker Compensation
164880 Ray Lopez 36.12 03/27/2024 Meal Reimbursement
164881 Stefanie Dunn 1,000.00 03/27/2024 SNS Cash Increase
164883 Dan Boylard 150.00 03/27/2024 Museum Speaker Compesation
164884 2M Company Inc 1,747.18 03/28/2024 Misc. Parts **Prompt Pay Discount**
164885 AceK9.Com, Inc.1,942.63 03/28/2024 K9 Hot-N-Pop/Fan/Fan Guard Eq # 049
164886 Ag Supply Ace Hardware 122.55 03/28/2024 General Maintenance Supplies
164887 Amazon Capital Services, Inc.522.93 03/28/2024 Amazon February 2024
164888 Anatek Labs, Inc.2,730.00 03/28/2024 Sample Testing
164889 Aquatic Specialty Services Inc 20,639.26 03/28/2024 SNS Filter Media Installation
164890 Basin Propane LLC 32.78 03/28/2024 Propane @ Sleep Center
164891 Basin Septic Services Inc 562.00 03/28/2024 Sanitizer Station Services
164892 Battery Systems Inc 161.66 03/28/2024 65-85 Battery
164893 Bound Tree Medical LLC 1,389.50 03/28/2024 Medical Supplies
164894 Brooklyn Holton 7,191.80 03/28/2024 LEP Pro Services
164895 Bud Clary Ford LLC 48.44 03/28/2024 Tube
164896 Cascade Natural Gas Corp 1,708.54 03/28/2024 Natural Gas Services
164897 Central Machinery Sales Inc 1,625.97 03/28/2024 Misc. Parts
164898 Central Wash Asphalt Inc 855.14 03/28/2024 Gravel
164899 Centurylink 1,739.40 03/28/2024 Telephone Services
164900 Centurylink 3,380.48 03/28/2024 Telephone Services
164901 Coaxsher, Inc.396.69 03/28/2024 Uniforms
164902 Columbia Basin Herald 139.36 03/28/2024 Ordinance Ad
164903 Commercial Tire Inc 1,057.95 03/28/2024 Tire Disposal
164904 Consolidated Electrical Distributors 50.10 03/28/2024 Maintain Rocker Switch
164905 Copiers Northwest Inc 715.19 03/28/2024 Equipment Contract Fees
164906 Crown Paper & Janitorial 2,051.67 03/28/2024 Burnisher
164907 Databar Inc 1,484.62 03/28/2024 Utility Billing Invoices
164908 Dell Marketing 3,045.77 03/28/2024 Dell Latitude- PD
164909 Faber Industrial Supply 363.52 03/28/2024 Sawzall Blades
164910 Fastenal Company 496.31 03/28/2024 Safety Gear
164911 Ferguson Enterprises Inc #3007 31.50 03/28/2024 Fill Valve
164912 Galls LLC 4,961.40 03/28/2024 Uniform, Dominguez
164913 Grainger Parts Operations 86.20 03/28/2024 Fuses
164914 Grant County Treasurer 989.32 03/28/2024 2% Liquor Profits March 2024
164915 H D Fowler Company 6,040.77 03/28/2024 Gate Valves
164916 Hach Company 957.18 03/28/2024 Buffer Solution
164917 Jerrys Auto Supply 1,379.42 03/28/2024 Silentguard Kit/Brake Pads/Rotors
164918 Jims Lock Service LLC 91.33 03/28/2024 IC Cores/Key Blank/Stamped
164919 Lad Irrigation Company Inc 21.45 03/28/2024 Drip Tubing/Coupler
164920 Life -Assist, Inc.1,850.71 03/28/2024 Medical Supplies
164921 Moon Security Services Inc 85.65 03/28/2024 Museum Security
164922 North 40 Outfitters 249.29 03/28/2024 Fasteners/Gloves
COML Council Packet 4-9-24, Page 14 of 222
164923 Oreilly Auto Parts 90.80 03/28/2024 Brake Cleaner
164924 Pasco Tire Factory, INC 47.65 03/28/2024 Flat Repair
164925 Pro Touch Car Wash & Auto Detail LLC 44.72 03/28/2024 Car Washes February 2024
164926 Safe Software Inc 726.28 03/28/2024 ESRI Renew
164927 SCJ Alliance 2,579.25 03/28/2024 Planning Professional Services
164928 Sherwin-Williams 15.26 03/28/2024 Paint Supplies
164929 Shirtbuilders Inc 196.14 03/28/2024 Uniform, CARES
164930 Summit Law Group 500.50 03/28/2024 HR Pro Services
164931 Topcon Solutions Inc 180.22 03/28/2024 Survey Leveling Rod
164932 Ups Freight 78.22 03/28/2024 Shipping & Service Fees
164933 Usa Blue Book 359.66 03/28/2024 Tube Assemblies
164934 WA State Department of Ecology 20,457.00 03/28/2024 Wastewater Permit - Larson (1/2)
164935 Waste Mgt Recycle America Inc 530.39 03/28/2024 Commingle Loads Feb
164936 Weinstein Beverage Company 796.07 03/28/2024 SNS Maintenance Supplies
164937 William R Cushman 7,866.00 03/28/2024 Fire District Analysis
164938 William Scotsman, Inc 2,106.22 03/28/2024 Office Rental @ Sleep Center
164939 Randy Anderson 89.03 03/29/2024 Refund Utility Overpayment
164940 Grant County Auditor 305.50 03/29/2024 Well 20 Declaration of Covenant
164941 Don Garrison 900.81 03/31/2024 March 2024 LEOFF Pension
164942 Janelle Sword 1,180.10 03/31/2024 March 2024 LEOFF Pension
164943 Luther Stowers 680.83 03/31/2024 March 2024 LEOFF Pension
481,744.16$
COML Council Packet 4-9-24, Page 15 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Kevin Fuhr, City Manager 15190
Madeline Prentice, Director Finance
4/9/2024 Consent Agenda
2004 Water/Sewer Revenue Bonds
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
1,228,500.00$1,228,500.00$0.00$
Pursuant to Ordinance 2177, adopted on September 28, 2004, and Ordinance 2626, adopted August 9, 2011,
authorize staff to the pay final 2004 Water/Sewer Revenue Bond payment from reserve funds available in Fund
451 ($567,600) and Fund 453 ($701,500). Upon payment of final payment, authorize staff to distribute
remaining bond reserve amount of $40,600 to Water (Fund 411) and Sewer (Fund 412) in equal amounts of
$20,300. When all reserve funds have been paid or distributed, and the final bond payment has been made,
authorize staff to close the following bond funds:
#450 - 2011 Bond Fund
#451 - 2011 Bond Reserve Fund
#452 - 2004 Bond Fund
#453 - 2004 Bond Reserve Fund
Ordinance #2177 - 2004 Water-Sewer Revenue Bonds.pdf 2.94MB
Ordinance #2626 - 2011 Water-Sewer Revenue Bonds.pdf 3.03MB
COML Council Packet 4-9-24, Page 16 of 222
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
The 2011 Water/Sewer Revenue bonds were paid off in August 2021. At the time the bond was paid off, there
was $567,600 available in the 2011 Bond Reserve Fund #451 that was not used to make the final payment due
on the bonds. The reserve funds are still available in Fund #451.
The final bond payment on the 2004 Water/Sewer Revenue Bonds is due in September 2024. There are
reserve funds in the amount of $701,500 in the 2004 Bond Reserve Fund #453 available for use in making the
final bond payment in September.
We are requesting Council authorization to make the final 2004 Water/Sewer Revenue bond payment in
September 2024 using the reserve funds available in the 2011 Bond Reserve Fund #451 ($567,600) and the
2004 Bond Reserve Fund #453 ($701,500). Once the final bond payment has been made, there will be excess
reserves in the amount of $40,600 remaining in the bond reserve funds that we are requesting to distribute
evenly to Water (#411) and Sewer (#412) funds.
When the reserve funds have been paid out and/or distributed as identified, Bond Funds #450 and #452 and
Bond Reserve Funds #451 and #453 will be closed.
During the 2024 budget preparation, we budgeted $614,250 to be transferred from Water (#411) and $614,250
to be transferred from Sewer (#412) into the 2011 Bond Fund #450 for the final payment of the 2011 water and
sewer revenue bonds. By using the bond reserve funds in Fund #451 and Fund #453 for the final bond
payment in 2024, the Water and Sewer funds will not need to transfer funds to Fund #450 to make the payment,
therefore freeing up these funds for other uses or to increase the fund balance available for future expenditures
and projects.
Additionally, excess funds available in the bond reserve funds remaining after the final bond payment has been
made will be distributed evenly between the Water and Sewer funds for other uses or increases to the fund
balance.
Options and Results
Authorize use of bond reserves to pay final bond payment, transfer excess reserves to Water and Sewer and
close four funds.
Staff will bring back options for recommended changes.
Reserves will remain in the Bond Reserve Funds and be available for use as Council directs.
COML Council Packet 4-9-24, Page 17 of 222
ORDINANCE NO.2177
AN ORDINANCE OF THE CITY OF MOSES LAKE,WASHINGTON;AUTHORIZINGCERTAINADDITIONS, BETTERMENTS AND IMPROVEMENTS TO THE CITY'SCOMBINEDSYSTEMOF WATERAND SEWERAGE;AUTHORIZINGTHE ISSUANCEOFWATERAND SEWER REVENUE BONDS OF THE CITYTO PAYTHE COSTS OFSAIDIMPROVEMENTSIN THE AGGREGATE PRINCIPAL AMOUNTOF $7,015,000;FIXINGTHE DATE,FORM, TERMS,MATURITIES AND COVENANTS OF THE BONDS;APPROVING APURCHASE CONTRACT FOR THE BONDS;RESERVING THE RIGHTTOISSUEREVENUEBONDSONA PARITY WITH THE BONDSHEREINAUTHORIZEDOUPON COMPLIANCEWITHCERTAINCONDITIONSANDAPPROVING ANAGREEMENTFOR ONGOING DISCLOSURE.
1. WHEREAS,the Cityof Moses Lake, Washington (the"City")operates a combined water and sewersystem(hereinafterfurther defined as the "System");and
2.WHEREAS,the System is inneed of certain upgrades toits administrativefacilities (the"Project");and
3.WHEREAS,pursuant to RCW chs. 35.92,35.41 and 39.44,theCityis authorized toissue its revenuebonds payable and secured by thenet revenues of its System under terms approved by the Councilbyordinance;and
4.WHEREAS,D.A. Davidson &Co.,Spokane,Washington, has submittedtothisCouncil an offer topurchasethebonds authorized herein in accordance withthe terms of thisordinance and thisofferisacceptabletotheCouncil;
NOW, THEREFORE,THE CITYCOUNCILOF THE CITYOF MOSES LAKE,WASHINGTON,DO ORDAIN
as follows:
Section 1.Definitions.As used in thisordinance the following definitions shall apply unless a differentmeaningclearlyappearsfromthe context:
A.Accreted Value means (1)with respect to any Capital Appreciation Bonds,as of any date ofcalculation,thesum of theamount setforth intheordinance authorizing theirissuance as theamount
O representing the initial principal amount of such Capital Appreciation Bonds plus the interestaccumulated,compounded and unpaidthereonas ofthe most recent compounding date,or (2)withrespecttoOriginalIssueDiscountBonds,as of the date of calculation,the amount representing theinitialpublic offering price of such Original Issue Discount Bonds plus the amount of discountedprincipal which has accreted since the date of issue. In each case,the Accreted Value shall bedetermined in accordance with the provisions of the ordinance authorizing the issuance of suchBalloon Maturity Bonds.
B. Annual Debt Service means the totalamount ofDebt Service for any Parity Bond or series of ParityBondsorother evidences of indebtedness payable from Revenue oftheSystem in anyfiscal yearorBase Period.
C.Balloon MaturitvBonds means any evidences of indebtedness oftheCitypayable from Revenue oftheSystemthataresodesignatedintheordinancepursuanttowhichsuchindebtedness is incurred.
D. Base Period means any consecutive 12-month period selected bythe Cityout of the36-month periodnextprecedingthedateofissuance of an additional series of Future Parity Bonds;provided, however,that for so long as the Insurance Policy is in effect,the 12-month period selected bythe Cityshall bewithinthe24-month period next preceding thedate of issuance ofan additional series of Future ParityBonds.
E.Beneficial Owner means thebeneficial owner ofallora portion ofa Bond whilesuch Bond is infullyimmobilizedform.
F. Bond Fund means 2004 Bond Fund #452 maintained by the Citywithin the Water Sewer Fund andalso shall include any fund established in thefuture for the payment ofdebt service on Parity Bonds.
G.Bond Register means thebooks or records maintained by the Registrar containing the name andmailingaddressoftheownerof each Bond or nominee ofsuch ownerand the principal amount andnumberof Bonds held by each owner or nominee.
H.Bonds means the $7,015,000par valueCityof Moses Lake, Washington, Water and Sewer RevenueBonds,2004 authorizedto be issued pursuant tothis ordinance.
COML Council Packet 4-9-24, Page 18 of 222
Ordinance No.2177
Page 2
1.Capital Appreciation Bonds means any Future ParityBonds all or a portion of the interest on.which
is compounded,accumulated and payable only upon redemption or on the maturitydate of such
Capital Appreciation Bonds. Ifso provided in the ordinance authorizing theirissuance,Future Parity
Bondsmay be deemed tobe Capital Appreciation Bonds for onlya portion oftheirterm.On thedate
on which Future Parity Bonds no longer are Capital Appreciation Bonds,they shall be deemed
outstandingina principalamount equaltotheirAccreted Value.
J.C_jtymeans the Cityof Moses Lake,a municipal corporation ofthe State of Washington.
K.CityReoresentative means the Mayor orthe CityAdministrator orsuch other officialor employeeof
the Citydesignated inwriting by eitherofthe foregoing
L _Qo.d_emeans the United States Intemal Revenue Code of 1986,as amended,together with all
applicablerulings and regulations heretofore or hereafter promulgated thereunder.
M.Consultant means at any timean independent municipalfinancial consultant appointedby the City
to perform theduties oftheConsultant as required bythisordinance,For the purposes of delivering
any certificaterequired by Section 11 hereof and making the calculation required by Section 11
hereof,the termConsultant shallalsoinclude any independent publicaccounting firm appointedby
the Cityto make such calculationor toprovide such certificate.
N.Costs of Maintenance andOperation means allreasonableexpenses incurred bythe Cityincausing
the System ofthe Cityto be operated and maintainedingood repair,workingorder and condition, but
shallnot include any payments for debt service or into reserve funds,depreciation ortaxes levied or
imposed by the City or payments to the City in lieu of taxes,or capital additions or capital
replacementsto the System.
O.Council means the CityCouncil as the general legislative authority of the City as the same shall be
duly and regularlyconstitutedfrom timeto time.
P. Debt Service means,for any period oftime,
1. withrespect toany outstandingOriginalIssue Discount Bonds orCapital Appreciation Bonds
which are not designated as Balloon Maturity Bonds in the ordinance authorizing their
issuance,the principal amountthereofshallbe equal totheAccreted Value thereofmaturing
or scheduled for redemption in such period, and the interest payable during such period;
2.withrespect to any outstandingFixed Rate Bonds,an amount equal to (A)the principal
amount of such Fixed Rate Bonds due or subject to mandatory redemption during such
period and forwhich nosinkingfund installments have been established,(B)the amount of
any payments required tobe madeduring such period into any sinking fund establishedfor
the payment ofany such Fixed Rate Bonds,plus(C)allinterest payableduring such period
on any such outstanding Fixed Rate Bonds and with respect to Fixed Rate Bonds with
mandatorysinking fund requirements,calculated on theassumption thatmandatory sinking
fund installments willbe applied tothe redemption or retirement of such Fixed Rate Bonds
on thedate specifiedintheordinanceauthorizingsuch Fixed Rate Bonds;and
3.with respect to all other series ofParity Bonds, other than Fixed Rate Bonds, Original issue
Discount Bonds or Capital Appreciation Bonds,specificallyincluding but not limitedto Balloon
MaturityBonds and ParityBonds bearing variable rates of interest,an amount for anyperiod
equal totheamountwhichwould have been payable for principal and interest on such Parity
Bonds during such period computedonthe assumption thatthe amountof Parity Bonds as
ofthe date of such computation would be amortized(i)in accordance with the mandatory
redemption provisions, if any,set forth in theordinance authorizing the issuance of such
Parity Bonds,or if mandatory redemption provisions are not provided, during a period
commencing on thedate ofcomputationand endingon the date 30 years afterthe date of
issuance (ii)at an interest rate equal totheyield tomaturity set forth in the 40-Bond Index
published in the edition of The Bond Buyer(or comparable publication or such other similar
index selected by the City)and published within ten days prior to the date of calculation or,
ifsuch calculation is being made in connection with the certificate required by Section 11
hereof,thenwithintendays of such certificate,(iii)toprovide for essentially levelannualdebt
service of principaland interest oversuch period. Debt Service shall be net of any interest
funded out of Bond proceeds. Debt Service shall include reimbursement obligations to
providers of Credit Facilities to the extent authorized by ordinance.
Q._DTCmeans The Depository Trust Company, New York, New York,a limited purpose trustcompany
organizedunder the laws oftheState ofNew York,as depository for the Bonds pursuant toSection 5
hereof.
R.Finance Directormeans theperson designated as such by the CityAdministrator,as authorizedby
ordinance ofthe Cityto perform theduties oftreasurer and clerk of the City.
S.Fixed Rate Bonds means thoseParity Bonds other thanCapital Appreciation Bonds,Original Issue
Discount Bonds or Balloon MaturityBonds issued under an ordinance inwhich therate of interest on
such Parity Bonds is fixed and determinable throughtheirfinal maturity or for a specified period of
COML Council Packet 4-9-24, Page 19 of 222
OrdinanceNo. 2177
Page 3
time.Ifso provided intheordinanceauthorizing theirissuance, Parity Bonds rnaybe deemed to beFixedRate Bonds foronly a portionof theirterm.
T.Future Parity Bonds means anywater and sewer revenue bonds which the Citymay hereafter issuehavingalienupontheRevenueoftheSystemforthepayment of the principal thereof and interestthereonequaltothelienupontheRevenueoftheSystemoftheBonds.
U.Government Oblications has the meaning given such termin RCW Ch.39.53,as such chaptermaybehereafteramendedorrestated.
V.Insurance Policymeans the financial guaranty insurance policywithrespect tothe Bonds issued bytheInsurerinsuringthepaymentwhendue of the principal ofand interest on the Bonds as providedtherein.
W.Insurer means Ambac Assurance Corporation,a Wisconsin-domiciled stock insurance company,oranysuccessortheretoorassigneethereof,as issuer of the Insurance Policy for the Bonds.
X.Investment Earnings means alleamings in any form whatsoeverderived from Investments.
Y.Investments means any investments permitted tothe Cityby law of money requiredtobe depositedinanyfundoraccount of the Water Sewer Fund of theCityexcept money deposited in anyescrowaccountforthepurposeofrefundinganyParityBonds and except any money which is subject topaymenttothe UnitedStates Treasury under the rebate provisionsof the Code.
Z.Letter of Representations means the Blanket Issuer Letter of Representations from theCitytoDTC.
AA.Maximum Annual Debt Servicemeans highestdallar amount ofAnnual Debt Serviceinany fiscal yearorBasePeriod for all outstanding Parity Bonds and the Bonds and/or for all subordinate lienevidences of indebtedness secured by Revenue of the System,as the context requires.
BB.Moodv's means Moody'sInvestors Service,its successors and theirassigns;and,ifsuch corporationshallbedissolvedorliquidatedorshallnolonger perform the functions ofa securities rating agency,Moody's shall be deemed to refer to any other nationally recognized securities rating agencydesignatedbytheCity.
CC.MSRB means the MunicipalSecurities Rulemaking Board.
DD.Net Proceeds, when used withreferencetotheBonds,means theprincipal amount of theBonds,plusaccruedinterestand original issue premium, ifany,and less originalissue discount and proceeds,ifany,deposited in the Reserve Fund.
EE. Net Revenue means Revenue of theSystem less Costs of Maintenance and Operation.
FF. NRMSIR means a nationally recognized municipal securities information repository.
GG.Original Issue Discount Bonds means Parity Bonds whichare sold at an initialpublic offering priceoflessthan95%oftheirface value and whichare specifically designated as Original Issue DiscountBonds in the ordinance authorizing theirissuance.
HH.Parity Bonds means theBonds and any Future Parity Bonds.
II. Parity Reauirement means Net Revenues equal to or greater than:
1. 125%of Maximum Annual Debt Service for all Parity Bonds computed by deducting fromAnnual Debt Service the Annual Debt Service for each series or issue of Parity Bonds whichis covered by ULIDAssessments, and
2. 100%of Maximum AnnualDebt Servicefor allsubordinatelien evidences of indebtednesssecuredby Revenue ofthe System.
In determining the amount of Annual Debt Service "coveredby ULIDAssessments",AnnualDebtServiceforeach future year is reduced by the dollar amount of ULIDAssessments projected to bereceived during such future year,and theremaining outstanding ULIDAssessments are assumed tobepaidintheremainingnumber of annual installments with no prepayments.
JJ.Private Person means any natural person engaged in a trade or business or any trust,estate,partnership, association,company or corporation.
KK. Private Person Use means theuse of property ina trade or business bya Private Person ifsuch useisother than as a member of the general public.Private Person Use includes ownership of thepropertybythePrivatePersonaswellasotherarrangementsthattransfertothePrivatePersontheactualorbeneficialuseoftheproperty(suchas a lease,management or incentive payment contract
or other special arrangement)in such a manneras toset thePrivate Person apart from the generalpublic. Use of propertyas a memberof thegeneral publicincludes attendance bythe Private PersonatmunicipalmeetingsorbusinessrentalofpropertytothePrivatePersononaday-to-day basis ifthe
COML Council Packet 4-9-24, Page 20 of 222
Ordinance No.2177
Page 4
rental paid bysuch Private Person is thesame as the rental paid byany Private Person who desires
torentthe property.Useof propertybynonprofitcommunitygroups orcommunityrecreationalgroups
is not treated as Private Person Use ifsuch use is incidental to the governmental uses of property,
theproperty is made available forsuch use byallsuch community groups on an equal basis and such
communitygroups are charged only a de minimis fee to cover custodial expenses.
LL,Project means the plan of improvements tothe System authorized in Section 2 hereof.
MM.Project Fund means the Operations ComplexConstruction Fund #472 withinthe Water Sewer Fund
of the City.
NN.Qualified Insurance means anynon-cancelablemunicipal bond insurance policyorsurety bond issued
by any insurance company licensed to conduct an insurance business in any state of theUnited
States (orbya service corporation actingon behalf ofone or moresuch insurance companies)which
insurance company or companies,as of the time of issuance of such policy or surety bond,are
currently rated in one of the twohighest Rating Categories by both Moody's and S&P.
OO.Qualified Letter ofCredit means any irrevocable letter ofcredit issued bya financial institution for the
accountofthe Cityon behalf ofregistered owners of the Bonds,which institution maintains an office,
agency or branch in the United States and as of the time of issuance of such letter of credit, is
currentlyrated in one ofthe twohighest Rating Categories by either Moody's or S&P.
PP.Rate Covenantmeans Net Revenue in each fiscal year togetherwith ULIDAssessments received
ineach fiscal year at least equal tothe sum of (a)125%of the amounts requiredin such fiscal year
tobe paid as scheduled debt service (principaland interest)on allParity Bonds minus the amount
of Assessments collectedinsuch year and (b)100%of the amount of ULIDAssessments received
in such fiscal year.
QQ.Rating Agency means Moody's or S&P.
RR.Rating Category means thegeneric ratingcategories of the Rating Agency,without regardtoany
refinement or gradation of such rating category by a numerical modifieror otherwise.
SS.Registrar means the fiscal agency of the State of Washington, for thepurposes of registering and
authenticatingtheBonds,maintainingthe Bond Register,effectingtransferofownershipof theBonds,
and payingtheprincipal of,premium, ifany,and interest on theBonds.OTT.Registered Owner means the person named as the registered ownerofa Bond inthe Bond Register.
For so long as the Bonds are held in book-entry only form.DTCshall be deemed to be the sole
Registered Owner.
UU. Reserve Fund-2004 means the 2004 Bond Reserve Fund #453 maintained withinthe Water Sewer
Fund
VV.Reserve Requirement-2004 means thelesser of(i)Maximum Annual Debt Service with respecttothe
Bonds and (ii)1.25 timesAverage Annual Debt Service with respect tothe 2004 Bonds;provided,
however,that the Reserve Requirement-2004 shall not exceed an amount equal to 10% of the
aggregate ofthe initialpar amountof the Bonds.
WW.Revenue Fund means theWater/Sewer Fund #410 withinthe Water Sewer Fund maintained by the
FinanceDirector of the Cityand shall alsoinclude anyother fund of the City intowhich the Revenue
of the System is deposited.
XX.Revenueofthe System or Revenue means allofthe earningsand revenues receivedby theCityfrom
the maintenance and operationof the System and connection and capital improvement charges
collected for the purpose of defraying thecost of capital facilities ofthe System,including Investment
Earnings,but excludinggovemmentgrants,proceeds fromthe sale of System property,Citytaxes
collected by orthroughtheSystem,principalproceeds of bonds and earnings or proceeds from any
investments in a trust,defeasance or escrow fund created todefease orrefund System obligations
(untilcommingled with other earnings and revenues ofthe System)or held in a specialaccount for
the purpose of paying a rebate tothe United States Government under the Code.Revenue of the
System shall also include any federal orstate reimbursements of operating expenses to the extent
such expenses are included as Costs of Maintenance and Operation;provided, however,that
Revenueof the System shall not include ULIDAssessments.Certain Investment Earnings may be
transferred from the Revenue Fund to the General Fund of the City,subject to the priorities
established in Section 7 of thisordinance.
YY.Bulemeans the SEC's Rule 15c2-12 under the Securities Exchange Act of 1934,as thesame may
be amended from timeto time.
ZZ.g means Standard &Poor's,a Divisionof The McGraw HillCompanies,its successors andtheir
assigns,and, if such corporation shall be dissolved or liquidated or shall no longer perform the
functions of a securities rating agency,S&P shall be deemed to refer to any other nationally
recognizedsecurities rating agency designated by theCity.
COML Council Packet 4-9-24, Page 21 of 222
Ordinance No.2177Page5
AAA.SEC.means theSecurities and Exchange Commission.
BBB.SIDmeans a state information depository forthe State ofWashington (ifone iscreated inthefuture).
CCC. System means theCity'scombined system of water supplyanddistribution,sanitarysewage disposaland storm drainage,as thesame maybe added to,improved andextended foras long as any ParityBondsareoutstanding.The termSystem alsoshallinclude any other utilitythatmayinthefuture becombinedwiththeSystem.
DDD._U_LI,Qmeans a utilitylocal improvement district of the City. The City does not currently have anyexistingutilitylocal improvement districts.
EEE. ULIDAssessments means the assessments levied in all ULIDs,the assessments in which arepayable into the Bond Fund,and shall include installments thereofand interest and any penaltiesthereon.
FFF,Underwriter means D.A.Davidson &Co.,Spokane,Washington.
GGG. Variable interest Rate means a variable interest rate orrates tobe borne by a series of Future ParityBondsor any one or more maturitieswithina series of Future Parity Bonds. The method ofcomputingsuchavariableinterestrateshallbespecifiedintheordinanceauthorizingsuchFutureParityBonds,which ordinance also shallspecifyeither (a)the particular period or periods of timeormannerofdeterminingsuchperiodorperiodsoftimeforwhicheachvalue of such variable interestrateshallremain ineffect or(b)thetimeor times uponwhichany change insuchvariableinterest rateshallbecomeeffective.
HHH,Variable Interest Rate Bonds means,for any period of time,Future Parity Bonds whichbear aVariableInterest Rate duringthatperiod,except thatFuture Parity Bonds the interest rate or rates onwhichshallhave been fixed for theremainder of the term thereofno longer shall be deemed tobeVariableInterestRate Bonds.
Rules of Interpretation.Inthis ordinance,unless thecontext otherwiserequires:
1. The terms "hereby,""hereof,""hereto,""herein,"hereunder"and any similarterms,as usedinthisordinance, refer to thisordinance as a whole and not toany particular article,section,subdivision or clause hereof,and the term "hereaftefshall mean after,and the term"heretofore"shall mean before,the date of thisordinance;
2. Words ofthemasculinegender shall mean and include correlative wordsof thefeminine andneuter genders and wordsimporting the singularnumbershall mean and include thepluralnumber and vice versa;
3. Words importing persons shall includefirms,associations, partnerships (includinglimitedpartnerships),trusts,corporations and otherlegal entities,including publicbodies,as wellasnaturalpersons;
4. Any headings preceding the textof the several sections of thisordinance,and anytableofcontentsormarginalnotesappendedtocopies hereof,shall be solely for convenience ofreferenceand shallnot constitute a part of thisordinance,nor shall theyaffect its meaning,construction or effect;
5.Allreferences herein to "articles,""sections"and other subdivisionsor clauses are to thecorrespondingarticles,sections, subdivisions or clauses hereof:
6. Words importing thesingular number include the plural number and viceversa.
Section 2. Findings and Purposes; Plan ofAdditions and Betterments totheSvstem.
A. The Council hereby finds thatthepublic interest,welfare and convenience require theconstruction,acquisition and installation of a new Public Works and Parks and Recreation Facility,to be usedprimarilyforSystemuses(withnon-System uses being chargedfor theirportion ofthetotalcosts)(the"Project")and that said improvements are legally required and/or economically sound,and willcontributetotheconduct of the business ofthe System in an efficient manner.
B.The Cityshall provide allequipment,connections and appurtenances togetherwith allworkas maybeincidentalandnecessarytocompletetheProject. The Project facilities shall be integrated intotheSystemasrequiredtoprovideafullyoperationalfacility.
C. The City may make such changes in or additionstothe Project or in the constructionor design ofother facilities of theSystem as may be found necessary or desirable.Implementation or completionofanyspecifiedimprovement shall notbe required iftheCouncil determines that,due tosubstantiallychangedcircumstances, it has become advisable or impractical.If the Project has either beencompleted,or its completion dulyprovided for,or its completion found tobe impractical,theCitymayapplytheBondproceedsoranyportionthereoftootherimprovementstotheSystem,as theCouncilinits discretion shalldetermine,Intheeventthat the proceed of sale of theBonds,plus any other
COML Council Packet 4-9-24, Page 22 of 222
Ordinance No.2177
Page 6
moneysof the City legally available,are insufficient toaccomplish allof the Project provided by this
section,the Cityshall use the availablefunds for paying the cost ofthose improvements forwhich the
Bonds were approved,deemed by the Council most necessary and tothe best interest of theCity.
D.The Cityshall acquire by purchase,lease or condemnation,all property,both real and personal,or
any interest therein,or rights-of-way and easements thatmay be found necessary to acquire,
construct and install theProject.
E. The estimated cost ofthisplan ofadditions andbetterments andallcosts incidental thereto (including
costs of issuance oftheBonds and funding ofthe Reserve Requirement),is hereby declared to be
as nearly as practicable thesum of$7,015,000,allof which shall be provided outof the proceeds of
the sale of the Bonds.
Section 3.Authorization of Bonds.The Cityshall now issue and sell $7,015,000ofwaterand sewer revenue
bonds (the"Bonds") for the purpose of providingfunds required to pay the cost of the Project,funding the
Reserve Requirement-2004and paying the costs ofissuance of the Bonds.
Section 4.Description oftheBonds.The Bonds shallbe designated as the"CityofMoses Lake,Washington
Water and Sewer Revenue Bonds,2004"(the"Bonds");shallbe dated as of October 1,2004; shall be fully
registered as to both principal and interest;shall be in the denomination of $5,000each,or any íntegral
multiplethereof,provided thatno Bond shall represent more than one maturity;shall be numbered separately
in such manner and with any additionaldesignation as the Registrar deems necessary for purposes of
identification;and shall bear interest from theirdate payablesemiannually on thefirst days ofeach March and
September,commencing on March1,2005,at the followingper annum interest rates and shallmature on
September 1 of the followingyears in thefollowingprincipalamounts:
MaturityYears
(September 1)Principal Amounts Interest Rates
2007 $15,000 2.50%
2008 20,000 2.75
2009 30,000 3.00
2010 75,000 3.25
2011 225,000 3.50
2012 250,000 3.50
2013 275,000 3.75
2014 290,000 3.75
2015 305,000 4.00
2016 395,000 4.00
2017 415,000 5.00
2018 435,000 5.00
2019 460,000 5.00
2020 485,000 5.00
2021 515,000 5.00
2022 545,000 5.00
2023 1,110,000 5,00
2024 1,170,000 5.00
The Bonds shallbe obligationsonlyof theBond Fund and shallbe payable and secured as provided herein.
The Bonds shall not be general obligationsof theCity.
Section 5.Recistration.Exchange and Pavments.
A.Registrar/Bond Register. The Cityherebyspecifies and adopts the system ofregistration approved
bytheWashington State Finance Committee fromtimetotimethroughtheappointmentofstate fiscal
agencies.The Cityshall cause a bond register tobe maintained by the Registrar.So long as any
Bonds remain outstanding,the Registrar shall make allnecessary provisions topermit theexchange
or registration or transfer of Bonds at its principalcorporate trust office.The Registrar may be
removed at any timeat the option of the City Representative upon prior notice tothe Registrar and
a successor Registrar appointed by the City Representative.No resignation or removal of the
Registrar shall be effective until a successor shall have been appointed and until the successor
Registrar shall have accepted theduties of the Registrar hereunder.The Registrar is authorized,on
behalf ofthecity,to authenticate and deliver Bonds transferredorexchanged inaccordance withthe
provisionsofsuch Bonds and thisordinance and to carryout allof the Registrar's poWers andduties
under this ordinance.The Registrar shallbe responsible for its representations contained in the
Certificate of Authentication of the Bonds.
B.Registered Ownershio.The Cityand theRegistrar,each in its discretion,may deem and treat the
RegisteredOwner ofeach Bond as the absolute ownerthereoffor all purposes (exceptas provided
inSection 19 of thisordinance), and neither the Citynor theRegistrar shall be affected by any notice
tothe contrary.Payment of anysuch Bond shall be made only as described inSection 5(h) hereof,
but such Bond may be transferred as herein provided. Allsuch payments made as described in
Section 5(h) shall be valid and shall satisfy and discharge the liabilityofthe City upon such Bond to
theextent of theamount or amounts so paid.
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Ordinance No.2177
Page 7
C.DTCAcceptance/Letters of Representations.The Bonds initiallyshall be held in fullyimmobilizedformbyDTCactingasdepository.Toinduce DTC toaccept the Bonds as eligible fordeposit atDTC,the Cityhas executed and delivered toDTC a Blanket Issuer Letter ofRepresentations,Neither theCitynortheRegistrarwillhaveanyresponsibilityorobligationtoDTCparticipantsorthepersonsforwhomtheyactasnominees(orthe participants of any successor depository orthose for who anysuchsuccessoractsasnominee)withrespect tothe Bonds inrespect ofthe accuracyof any recordsmaintainedby DTC (oranysuccessor depository)or any DTC participant,the payment by DTC(oranysuccessordepository)or any DTC participant of any amount in respect oftheprincipal of orinterestonBonds,anynotice which is permitted or required to be given to Registered Owners underthisordinance(exceptsuch noticesas shall be required tobe given bytheCitytotheRegistrar ortoDTC(orany successor depository)),or any consent given or other action taken by DTC (oranysuccessordepository)as the Registered Owner.For so long as any Bonds are held infully-immobilized form hereunder,DTC or its successor depository shall be deemed to be theRegisteredOwnerforallpurposeshereunder(exceptforSection 19hereof),andállreferenceshereintotheRegisteredOwnersshallmeanDTC(oranysuccessor depository)or itsnominee andshallnotmeantheownersofanybeneficial interest in such Bonds,except as providedinSection 19 of thisordinance.
Ifany Bond shall be duly presented for payment and funds have not been duly providedby theCityonsuch applicable date,theninterest shall continue toaccrue thereafter on the unpaid principalthereofat the rate stated on such Bond untilitis paid.
D. Use of Denository.
1. The Bonds shallbe registeredinitiallyinthe name of"Cede &Co.",as nominee of DTC,withoneBondmaturingoneachofthematuritydates for the Bondsin a denomination correspondingtothetotalprincipalthereindesignatedto mature on such date.Registered ownership of suchimmobilizedBonds,or any portions thereof,maynot thereafterbe transferredexcept (A)to anysuccessorofDTCoritsnominee,provided that any such successor shallbe qualified under anyapplicablelawstoprovidetheserviceproposedtobe provided by it;(B)to any substitutedepositoryappointed by the City Representative pursuant to subsection (ii)below or suchsubstitutedepository's successor;or (C)to any person as provided insubsection (iv)below.
2.Upon the resignation ofDTC or its successor (orany substitute depositoryor its successor)fromitsfunctionsasdepositoryoradeterminationbytheCity Representative to discontinue thesystemof book entry transfersthroughDTC or its successor (orany substitute depository or itsOsuccessor),the City Representative may hereafter appoint a substitute depository.Any suchsubstitute depository shall be qualified under any applicable laws to provide the servicesproposedtobe pmvided by it
3. In the case of any transfer pursuant toclause (A)or (B)of subsection (i)above,theRegistrarshall,upon receipt of all outstanding Bonds,together with a written request of the CityRepresentative, issue a single new Bond for each maturity then outstanding,registered in thenameofsuchsuccessor or such substitute depository,or theirnominees,as the case maybe,all as specified insuch written request of the City Representative.
4. Intheeventthat(A)DTCor itssuccessor (orsubstitute depository oritssuccessor)resigns fromits functions as depository,and no substitute depository can be obtained,or (B)the CityRepresentative determines thatitis inthe best interest ofthe beneficial owners ofthe Bonds thatsuchownersbe able toobtain such bonds intheform ofBond certificates,theownershipofsuchBondsmaythenbetransferredtoanypersonorentityashereinprovided,and shall no longerbeheldinfully-immobilizedform.The City Representative shall deliver a written request totheRegistrar,together with a supply of definitive Bonds,toissue Bonds as herein provided in anyauthorized denomination. Upon receipt by the Registrar of allthenoutstanding Bonds togetherwithawrittenrequestoftheCityRepresentativetotheRegistrar,new Bonds shall be issued intheappropriatedenominationsandregisteredinthenamesofsuchpersonsas are requested insuch written request.
E. Registration of Transfer ofOwnership or Exchange:Change in Denominations.The transferof anyBondmayberegisteredandBondsmaybeexchanged,but no transfer of any such Bond shall bevalidunless itis surrendered tothe Registrar withthe assignment form appearing onsuch Bond dulyexecuted by the Registered Owner or such Registered Owner's duly authorizedagent in a mannersatisfactorytotheRegistrar.Upon such surrender,theRegistrar shall cancel the surrendered BondOand shall authenticate and deliver,withoutcharge totheRegistered Owner or transferee therefor,anewBond(orBonds at the option of the new Registered Owner)of the same date,maturity andinterestrate and for the same aggregate principal amount in any authorized denomination,namingasRegisteredOwnerthepersonorpersonslistedastheassigneeontheassignment form appearingonthesurrenderedBond,inexchange for such surrendered and cancelled Bond.Any Bond maybesurrenderedtotheRegistrarand exchanged,without charge,for an equal aggregate principal amountofBondsofthesamedate,maturity and interest rate, inany authorizeddenomination.The Registrarshallnotbe obligated toregister thetransferortoexchangeany Bond during the15 days precedinganyInterestpaymentorprincipalpaymentdateanysuch Bond is to be redeemed.
F.Registrar's Ownershio ofBonds.The Registrar maybecomethe Registered OwnerofanyBondwiththesamerightsitwouldhaveifitwerenottheRegistrar,and totheextentpermittedbylaw,mayact
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Ordinance No. 2177
Page 8
as depository for and permitany of its officersor directors to act as member of,or in any other
capacity with respect to,any committeeformed to protect the rightof the Registered Owners of
Bonds.
G.Registration Covenant.The Citycovenants that,untilallBonds have been surrendered and canceled,
itwillmaintaina system for recordingthe ownership ofeach Bond thatcomplies withthe provisions
of Section 149of the Code.
H.Place and Medium ofPavment.Both principal of and interest on the Bonds shall be payable inlawful
money oftheUnited States ofAmerica. Interest on the Bonds shall be calculated onthe basis of a
year of360 days and twelve30-day months.For so long as allBonds are in fullyimmobilized form,
payments of principal and interest thereonshall be made as provided in accordance with the
operational arrangements of DTCreferred toin the Letter of Representations. Intheevent that the
Bonds are no longer infullyimmobilized form,interest on the Bonds shall be paid by check or draft
mailed totheRegistered Owners at the addresses for such Registered Owners appearing on the
Bond Register on the fifteenth day of the month preceding the interest payment date,or upon the
written request ofa Registered Owner ofmore than$1,000,000of Bonds (receivedby the Registrar
at least 15 days prior tothe applicablepayment date),such payment shall be made by the Registrar
by wire transfer to the account.within the United States designated by the Registered Owner.
Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the
Registered Owners at the principal officeof the Registrar.
Section 6.Redemption and Purchase.
A.No Optional Redemption.The Bonds are not subject toredemption prior totheirstated maturities.
B.Purchase of Bonds for Retirement.The City reserves the right to use at any time any surplus
Revenue of the System available after providingfor the payments required by paragraphs _Fitg,
through_Fjft_hof Section 7 of this ordinance,or other available funds,to purchase anyof the Bonds
at any price deemed reasonable by theCityto purchase for retirement any of theBondsoffered to
the Cityat any price deemed reasonable tothe City.
C.Effect of Purchase.To the extent that the City shall have purchased any Balloon Maturity Bonds
since thelast scheduled mandatoryredemption of such Balloon MaturityBonds,the City may reduce
theprincipalamount of the Balloon Maturity Bonds to be redeemed in like principal amount.Such
reduction maybe appliedinthe year specifiedby the City.
Section 7.Revenue Fund and PriorityofApplication ofRevenue.The City maintainstheWater Sewer Fund
as a separate enterprisefund of the City.AllRevenue ofthe System is deposited in theWater/Sewer Fund
#410 within the Water Sewer Fund (the"Revenue Fund").The Water Sewer Fund shall be considered a
combinedfund for purposes ofmeasuringcompliancewiththe Rate Covenant and the Parity Requirement.
Notwithstanding the foregoing,the CityFinance Director may maintain such separate funds and accounts in
such names and under such additionaldesignations as shall be required tocomply with the uniform system
of accounting established bythe State Auditor from timetotime.The Revenue Fund shall be held separate
and apartfrom all other funds and accounts of the Cityand the Revenue of the System deposited in such
Fund shall be used only for the followingpurposes and in thefollowingorder of priority:
A._Fid,to pay theCosts of Maintenance and Operation of theSystem;
B.Second.,to paytheintereston any Parity Bonds,includingreimbursements totheissuer of a Qualified
Letter of Credit or QualifiedInsurance iftheQualifiedLetter of Credit or QualifiedInsurance secures
the payment of interest on Parity Bonds and the ordinance authorizingsuch Parity Bonds provides
for such reimbursement;
C.Thir_d,to pay the principal ofany Parity Bonds,including reimbursements tothe issuer ofa Qualified
Letter of Credit or Qualified Insurance ifthe Qualified Letter of Credit or QualifiedInsurance secures
the payment of principal of Parity Bonds and the ordinance authorizing such Parity Bonds provides
for such reimbursement;
D.Fourth,to make all payments required to be made into the Reserve Fund-2004 and to any reserve
fund created in the future for the payment of debt service on Future Parity Bonds,including
reimbursements to the issuer of a QualifiedLetter of Credit or QualifiedInsurance ifthe Qualified
Letterof Credit or Qualified Insurance has been issued tofund theReserve Requirement-2004 and/or
the reserve requirement(s) for any Future Parity Bonds and theordinance authorizingsuch Parity
Bonds provides for such reimbursement;
E.JFjgh,to make allpayments required to be made into any revenue bond redemption fund or revenue
warrant redemption fund and debt service fund or reserve fund created to pay and secure the
payment of the principal of and interest on any other revenue bonds or revenue warrants ofthe City
having a lien upon the Revenue of the System juniorand inferiorto the lien thereonfor the payment
of theprincipal ofand interest on Parity Bonds;and
F.;Sixth,toretire by redemption or purchase anyoutstanding revenuebonds orrevenuewarrants ofthe
City,to make necessary additions,betterments,improvements and repairs to or extensions and
replacements of theSystem,or forany other lawful Citypurposes.
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OrdinanceNo.2177Page9
The Citymay transferany money from any funds or accounts oftheSystemlegally available therefor,exceptbond redemption funds,refunding escrow funds or defeasance funds,tomeet therequiredpayments tobemade into the Bond Fund.
Section 8. Bond Fund and Reserve Fund.The Finance Director has establishedthe 2004 Bond Fund #452withintheWater Sewer Fund for thepaymentof the debt serviceon the Bonds,and shallestablishseparatefundsinthefuture for thepayment ofdebt service on Future Parity Bonds (collectively,the"Bond Fund").TheFinanceDirectoralso has established the2004 Bond Reserve Fund #453 withinthe Water Sewer Fund forthepurposeof security the repayment oftheBonds (the"Reserve Fund-2004").
A. Pavments into Bond Fund.The Bond Fund shall be maintainedforthe purpose ofpaying the principalof and interest on all Parity Bonds.
As long as any Parity Bond remains outstanding,theCityhereby irrevocably obligates and binds itselftosetaside and pay from theRevenue Fund into theBond Fund thoseamountsnecessary,togetherwithsuchotherfundsasare on hand and available in the Bond Fund,to pay theinterest or principaland interest next coming due on outstanding Parity Bonds.Such paymentsfrom the Revenue FundtotheBondFundshallbemadeinafixedamountwithoutregardtoanyfixedproportionfollowingtheclosing and delivery of the Bonds on or before each date on which an installment of interest orprincipal and interest falls due on Parity Bonds equal to theinstallment of interest or principal andinterest
The CityFinance Director is hereby authorized and directed and theCityhereby obligates and bindsitselftosetasideandpayintotheBondFund all ULIDAssessments as the same are collected.
B. Pavments into Reserve Fund-2004.The Reserve Fund-2004 shall be maintained for thepurpose ofsecuringthepaymentoftheprincipalofandinterestontheBonds.The Citycovenants and agreesthatfromand aftertheclosing and delivery oftheBonds,it willat all timesmaintain an amount intheReserveFund-2004at least equal tothe Reserve Requirement-2004 except forwithdrawalstherefromauthorizedhereinafter, at all times for so long as any Bonds remain outstanding. The ReserveRequirement-2004 may be maintained by deposits of cash,a QualifiedLetter of Credit or QualifiedInsurance,ora combinationoftheforegoing. Incomputing theamount on hand inthe Reserve Furíd-2004,QualifiedInsurance and/or a Qualified Letter of Credit shall be valued at the face amountthereof,and all otherobligationspurchased as an investment of moneys thereinshall be valued atcost.As used herein,the term "cash"shall include U.S.currency,cash equivalents and evidencesthereof,includingdemand deposits,certified orcashier'scheck;and thedeposit totheReserve Fund-2004 maybe satisfiedinitiallybythetransferof qualifiedinvestments tosuch account.
Ifthe balances on hand inthe Reserve Fund-2004 are sufficient tosatisfy theReserve Requirement-2004, interest earnings shall be appliedas provided inthefollowing sentences. Whenever thereis
a sufficientamount in the Bond Fund, including the Reserve Fund-2004 to paythe principal of andinterestonalloutstandingBonds,themoneyin the Reserve Fund-2004 may be used to pay suchprincipalandinterest.As long as themoney left remaining on deposit in theReserve Fund-2004 isequaltotheReserveRequirement-2004,money intheReserve Fund-2004 maybe transferredtotheBondFundand used topay the principal ofand interest on theBonds as the same becomes due andpayable.The City also maytransferout of theReserve Fund-2004 any money requiredin ordertopreventanyBonds from becoming"arbitragebonds"underthe Code.
If a deficiency in the Bond Fund for the payment of debt service on the Bonds shall occur,suchdeficiencyshallbe made upfrom theReserve Fund-2004 bythewithdrawalof cash therefromforthatpurposeandbythesaleorredemptionofobligationsheldintheReserve Fund-2004,insuch amounts
as willprovide cash in theReserve Fund sufficientto make up any such deficiency with respect totheBonds,and if a deficiency still exists immediately prior toan interest payment date and after thewithdrawal ofcash,the Cityshall thendraw from any QualifiedLetter ofCredit or Qualified InsurancefortheBondsinsufficientamounttomakeupthedeficiency.Such draw shall be made atsuchtimesandundersuch conditionsas theagreement for such QualifiedLetter of Credit or such QualifiedInsuranceshallprovide,
Inmaking the paymentsand credits totheReserve Fund-2004 required by thisSection 8(b),totheextent that the City has obtained Qualified Insurance or a QualifiedLetter of Credit for specificamounts required pursuant tothissection tobe paid out of the Reserve Fund-2004 such amountssocovered by QualifiedInsurance ora QualifiedLetter of Credit shallbe creditedagainsttheamountsrequiredtobemaintainedintheReserve Fund-2004 by this Section 8(b)to the extent that suchOpaymentsandcreditstobemadeareinsuredbyaninsurancecompany, or guaranteed bya letter ofcreditfromafinancialinstitution.
Anydeficiency created inthe Reserve Fund by reason ofany such withdrawal shallthen be made upwithinoneyearofthedateof withdrawal from Net Revenues or from ULIDAssessments (orout ofanyothermoneys on hand legally available for such purpose)after makingnecessary provision forthepaymentsrequiredtobemadeintotheBondFund within such year.
Any Qualified Letter of Credit or Qualified Insurance shallnot be cancelable on less than30 days'notice tothe City.In the event ofanycancellation,the Reserve Fund-2004 shall be funded as iftheBondsthatremainoutstandinghad been issued on the date of such noticeofcancellation.
COML Council Packet 4-9-24, Page 26 of 222
OrdinanceNo.2177
Page 10
Intheevent thatthe Cityelectstomeet the Reserve Requirement-2004 throughtheuse ofa Qualified
Letter ofCredit,Qualified Insurance or other equivalent credit enhancement device,the City may
contract with the entity providing such QualifiedLetter of Credit,Qualified Insurance or other
equivalent credit enhancement device thatthe City'sreimbursement obligation,ifany,tosuch entity
shallbe made from payments of principal and interest on Parity Bonds from theCitysubjectonly to
the prior lien thereonforthe payments required hereunder to be made to registered owners of Parity
Bonds.
0.Reserve Funds for Future Parity Bonds.In the event that the City issues Future Parity Bonds,the
ordinance authorizing theirissuance shall providefor the establishment ofa reserve fund for such
series ("afuture reserve fund")and shall provide for thefunding of the future reserve fund in an
amount equal tothelesser of (i)Maximum Annual Debt Service withrespect to the proposed issue
of Future Parity Bonds or (ii)125%of Average Annual Debt Service,but in no event in an amount
equal to 10%of the proceeds ofthe proposed issue of Future Parity Bonds (the"Future Parity Bond
reserve requirement"). Each future reserve fund shall be maintained for thepurpose ofsecuringthe
payment of the principal ofand Interest on the respective series of Future Parity Bonds.A Future
Parity Bond reserve requirement maybe maintainedbydeposits of cash,a QualifiedLetter of Credit
or Qualified Insurance,or a combination of the foregoing. In computing the amount onhand in the
future reserve fund,QualifiedInsurance and/or a QualifiedLetter ofCredit shall be valued attheface
amount thereof,and all other obligationspurchased as an investment of moneys thereinshall be
valued at cost.As used herein,theterm"cash"shall include U.S.currency,cash equivalentsand
evidences thereof,including demand deposits,certified or cashier's check; and the deposit to the
future reserve fund may be satisfied initiallyby thetransferof qualified investments tosuch account.
If the balances on hand in the future reserve fund are sufficient to satisfy its Future Parity Bond
reserve requirement,interest earnings shall be applied as provided in the following sentences.
Whenever there is a sufficient amount in the Bond Fund, including the future reservefund topay the
principal ofand interest on therespective series ofoutstandingFuture Parity Bonds,themoneyinthe
future reserve fund may be used to pay such principal and interest.As long as themoney left
remaining ondeposit in thefuture reserve fund is equal tothe respective Future Parity Bond reserve
requirement,money inthe future reserve fund maybe transferredtothe Bond Fund and used topay
the principal of and interest on the series of Future Parity Bonds as the same becomes due and
payable. The Cityalso may transfer out of a future reserve fund any money requiredin order to
prevent any Future Parity Bonds from becoming "arbitrage bonds"underthe Code.
D.Priorityof Lien of Pavments into Bond Fund and Reserve Fund. The amounts so pledged tobe paid
intothe Bond Fund and theReserve Fund-2004 fromthe Revenue Fund andfrom ULIDAssessments
are hereby declared to be a prior lien and charge upon the Revenue of the System and ULID
Assessments superior toallother charges of any kind or nature whatsoever except the Costs of
Maintenance and Operation of theSystem,andexceptthattheamounts so pledged are of equal lien
to the charges upon such Revenue and ULIDAssessments for the payment of the principal of and
interest on any Future Parity Bonds.
E.Applicationand Investmentof Moneys in theBond Fund and Reserve Fund.MoneyintheBond Fund
and Reserve Fund-2004 may be kept incash or invested as perrnitted by law.Investments in the
Bond Fund shallmature priorto thedate on whichsuch money shall be needed for required interest
or principal payments (forinvestments in the Bond Fund)or having a guaranteed redemption price
priorto maturity,Investments in theReserve Fund-2004 shall mature not later thanthe last maturity
of any then outstandingBonds.
F.Sufficienev of Revenues.The CityCouncil hereby finds thatinfixingtheamounts to be paid into the
Bond Fund and the Reserve Fund-2004 out of the Revenue of the System, it has exercised due
regard for the Costs of Maintenance and Operation and has not obligated the City to set aside and
pay into the Bond Fund and the Reserve Fund-2004 a greater amount of such Revenue thanin its
judgmentwillbe available overand above the Costs of Maintenance and Operation.
Section 9.Specific Covenants.
A.Rate Covenant.The Citywill establish,maintain and collect such rates and charges for service ofits
System for so long as any Bonds are outstanding as willmaintain theRate Covenant.
B. System Maintenance.The Citywillatalltimesmaintain and keep theSystem ingood repair,working
order and condition,and also will at all timesoperate such utilityand the business in connection
therewithinan efficientmannerand at a reasonable cost
C.Disposal ofProperties.The Citywillnot mortgage,sell,lease,or inanymannerencumber ordispose
of all or substantially all the property of the System (voluntarilyor involuntarily),unless provision is
made for payment intothe Bond Fund of a sum sufficient to pay theprincipal of,premium,ifany,and
interest onalloutstanding bonds payable therefrom,nor willitmortgage,sell,lease,or inany manner
encumber or dispose of (includingbut not limited to a disposition by transfer to another public or
private organization) voluntarily or involuntarily any part of the System that is used,useful and
material tothe operation of the System unless
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Ordinance No. 2177
Page 11
1.theCitycertifies, based upon reasonable expectations,thattheremaining assets of the Systemshallbesufficienttocontinue regular operations ofthe City on a financiallysound basis for aperiod of at least fiveyears and
2. provision is made for replacement thereoforfor payment into the Bond Fundof thetotalamountofrevenuereceivedwhichshallnot be less than an amount which shallbear thesame ratio totheamountof outstanding Parity Bonds as the greater of
a.the Net Revenue available for Debt Service for such outstanding Parity Bonds for the12monthsprecedingsuch sale, lease,encumbrance or disposal from the portionof theSystemsold,leased,encumberedordisposed ofbears tothe Net Revenueavailablefor DebtServicefor such Parity Bonds from the entire System for the same period;
b,theRevenue of theSystem for the 12 monthsprecedingsuch sale,lease,encumbrance ordisposalfromtheportionoftheSystemsold,leased,encumbered ordisposed ofbears totheRevenueoftheSystemforthesameperiod;
c.the proportion of assets (ona depreciated basis)allocable tothe assets being sold,leased,
encumbered or disposed of bears to the totalassets ofthe System;or
d,the proportion of customers of the City allocable to the assets being sold,leased,encumbered ordisposed ofbears tothetotalnumber ofcustomers oftheSystem,provided,however,that the City may dispose of any portion ofthefacilitiesof the System up to anaggregateoffivepercentofthebook value of the totalassets of the System without therequirement for any deposittotheBond Fund as hereinabove provided.
Anysuch moneys so paid into the Bond Fund shall be used toretire such outstanding ParityBondsat the earliest possible date. Any money received by theCity as condemnationawards, insurance proceeds ortheproceeds ofsale,ifnot deposited totheBond Fund,shallbeusedforthereplacement of facilities of theSystem.
D. Books and Records.The Citywill,while any of the Bonds remains outstanding,keep proper andseparateaccountsandrecordsin which complete and separate entries shall be made of alltransactionsrelatingtotheSystem, and itwill furnish theoriginal purchaser or purchasers oftheBondsoranysubsequentowner or owners thereof,at thewritten request of such owner or owners,complete operating and income statements of the System in reasonable detail covering any fiscalOyear,showing thefinancial condition of thewaterand sewer departments and compliance with thetermsandconditionsofthisordinance,notmorethan150 days after the close ofsuch fiscal year,anditwillgrantanyowner or owners of at least 25%oftheoutstandingBonds theright at all reasonabletimestoinspecttheentireSystemand all records,accounts and data of theCity relating thereto.Upon request of any owner of anyof said Bonds, itwillalso furnish tosuch ownera copyofthemostrecentlycompleted audit of the City's accounts by theState Auditor of Washington or independentcertifiedpublicaccountant
E. No Free Service. The City willnot furnish water or sanitary sewerage disposal service to anycustomerwhatsoever free of charge (exceptto aid the poor or infirm,to provide for resourceconservationortoprovide for theproper handling ofhazardous materials) and willpromptlytakelegalactiontoenforcecollectionofalldelinquentaccounts.
F. Procerty Insurance.The Citywillat all timescarry fire and extended coverage and suchotherformsof insurance on thebuildings, equipment,facilitiesand properties oftheSystem,ifsuch insurance isobtainableatreasonableratesanduponreasonable conditions,against such risks, insuch amounts,and with such deductibles as the Council shall deem necessary fortheprotection of theSystem andtheownersofalloutstanding Parity Bonds.
G.LiabilitvInsurance.The Citywillat alltimeskeep and arrange to keep infullforce and effect policiesofpublic liabilityand property damage insurance which willprotect the Cityagainst anyone claimingdamagesofanykindornature arising out of the operationof the System,if such insurance isobtainableat reasonable rates and upon reasonable conditions, in such amounts and with suchdeductiblesastheCouncilshall deem necessary for theprotection of theCityand the owners of theoutstandingParity Bonds.
H. Delinquencies of Accounts.The Citywill,on or before March 1ofeach calendar year,determine allOaccountsthataredelînquentandwilltakeallnecessaryactionto enforce payment of any suchdelinquencies.
I. ULIDAssessments.AllULIDAssessments shall be paid into theBond Fund and shall be used topayandsecurethepaymentoftheprincipal of and interest on the Bonds and Future Parity Bonds.Nothing in this ordinance or this section shall be construed to prohibit the Cityfrom issuing water,sewer or water and sewer revenue bonds juniorinlien tothe Bonds and pledging as security for theirpaymentassessmentslevied in any ULIDwhich may have been specificallycreated topay part of thecost of improvements to the System for which thosejuniorlien bonds were specificallyissued.
Section 10. Tax Covenants.The Citycovenantsthat itwillnot take or permit to be taken on its behalfanyactionthatwouldadverselyaffecttheexemptionfromfederal income taxationoftheinterest on theBonds and
COML Council Packet 4-9-24, Page 28 of 222
Ordinance No.2177
Page 12
willtakeor require to betaken such acts as may reasonably be within its abilityand as may from timetotime
be required under applicable law tocontinue the exemption from federal income taxationof the interest on the
Bonds.
A.Arbitrace Covenant Without limitingthegeneralityof theforegoing,theCitycovenantsthatitwillnot
takeany action orfailtotakeanyaction withrespect tothe proceeds ofsale ofthe Bonds or any other
funds oftheCitywhich may be deemed to be proceeds ofthe Bonds pursuant toSection 148 of the
Code and theregulations promulgated thereunderwhich,ifsuch use had been reasonably expected
on thedate of delivery of the Bonds to the initialpurchasers thereof,would have caused the Bonds
as "arbitragebonds"withinthemeaningof such term as used in Section 148 of the Code.
The City represents that it has not been notified of any listing or proposed listing by the Internal
Revenue Service totheeffect thatitis an issuer whosearbitrage certificationsmay notberelied upon.
The Citywillcomplywiththe requirements ofSection148 of theCodeand the applicableregulations
thereunderthroughoutthe termofthe Bonds.
B.Private Person Use Limitation for Bonds.The City covenants that for as long as the Bonds are
outstanding,itwillnot permit:
1,More than10% oftheNet Proceeds ofthe Bonds tobe used for anyPrivate Person Use;and
2.More than 10%of the principalor interest payments on the Bonds in a Bond Year to be
directly or indirectly:(A) secured by any interest in property used or to be used for any
Private Person Use or secured bypayments inrespect ofpropertyused or tobe used for any
Private Person Use,or (B) derived from payments (whetheror not made to the City) in
respect ofproperty,or borrowed money,used or to be used for any Private Person Use.
The Cityfurther covenants that,if:
3. More than five percent of the Net Proceeds of the Bonds are to be used for any Private
Person Use;and
4.More thanfive percent oftheprincipal or interest payments on the Bonds in a Bond Year are
(underthe terms ofthisordinance orany underlyingarrangement)directly or indirectly:
a.secured by any interest in property used or to be used for any Private Person Use
or secured by payments in respect of propertyused or to be used for any Private
Person Use,or
b.derived from payments (whetheror not made tothe City)in respect of property,or
borrowed money,used or to be used for any Private Person Use,then,(i)any
Private Person Use of the projects described in subsection (3)hereof or Private
Person Use payments described insubsection (4)hereof thatis inexcess ofthefive
percent limitations described in such subsections (3)or (4)willbe for a Private
Person Use thatis related tothestate or local governmentaluse ofthe Project,and
(ii)anyPrivate Person Use willnot exceed theamountof Net Proceeds oftheBonds
used for the state or local governmental use portionof the project to whichthe
Private Person Use ofsuch portion oftheProject relates.The Cityfurther covenants
that itwillcomply with any limitations on the use of the projectsby other than state
and local govemmentalusers thatare necessary,inthe opinionofits bond counsel,
to preserve the tax exemption ofthe interest on the Bonds.The covenants of this
sectionare specified solely toassure the continuedexemption from regular income
taxationof the interest on the Bonds.
C.Designation under Section 265(bl.The City hereby designates the Bonds as "qualified tax exempt
obligations"for investment by financial institutions under Section 265(b)of the Code.The Citydoes
notanticipatethat itwill issue morethan $10,000,000inqualified tax-exemptobligations during 2004
(excludingobligationspermitted by the Code to be excluded for purposes of the City's qualification
as a qualified small issuer).
D.Modification of Tax Covenants.The covenants of this section are specifiedsolelyto assure the
continued exemption from regular income taxationof the interest on the Bonds.To thatend, the
provisions of this section may be modified or eliminated withoutany requirement for formal
amendment thereof uponreceipt of an opinion ofthe City's bond counsel that such modification or
elimination willnot adverselyaffect the tax exemption ofinterest on any Bonds.
Section 11.Issuance of Future Parity Bonds.
A.Conditionsupon the issuance of Future Paritv Bonds. As long as any of the Bonds remain
outstanding,the City hereby further covenants and agrees that itwill not issue any Future Parity
Bonds except that theCityhereby reserves the right to issue additional water and sewer revenue
bonds,which shall constitute a charge and lien upon the Revenue of the System equal to the lien
thereonof theBonds. Except as providedinsubsection(b)below,theCityshall ng issue any series
of Future Parity Bonds or incur any additionalindebtedness witha paritylien or charge on Net
Revenues (i.e.,on a parityof lien with Parity Bonds at the timeoutstanding)unless:
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OrdinanceNo.2177
Page 13
1.the City shall not have been in default of its Rate Covenant for the immediately precedingfiscalyear,and
2.The ordinance authorizingthe issuance of such Future Parity Bonds shall include thecovenantsprovidedin Section 8(c)hereof and provide thatthe Future Parity Bond reserverequirement shall be funded no later thanthe date ofdelivery ofthe Future Parity Bonds.
3.thereshall have been fileda certificate (preparedas described insubsection(c)or(d)below)demonstrating fulfillmentoftheParity Requirement,commencingwiththefirstfullfiscal yearfollowingthedateonwhichanyportionofinterestontheseriesofFutureParity Bonds thenbeingissuednolongerwillbe paid from theproceeds of such series ofFuture Parity Bonds.
B.No Certificate Recuired.The certificate described in the foregoing subsection (a)(2)shall not berequiredas a condition totheissuance of Future Parity Bonds:
1. Ifthe Future Parity Bonds being issued are for the purpose of refunding outstanding ParityBonds;or
2. ifthe Future Parity Bonds are being issued to pay costs of construction of facilities of theSystem forwhichFuture Parity Bonds have been issued previouslyandtheprincipalamountof such Future Parity Bonds being issued for completionpurposes does notexceed anamountequaltoanaggregateof15%of the principal amount of Future Parity Bondstheretoforeissuedforsuchfacilitiesand reasonably allocable tothefacilities tobe completed
as shown in a written certificate of the City Representative,and there is delivered aConsultant's certificate stating thatthe nature andpurpose ofsuch facilities has not materiallychanged.
C.Certificate of the CitvWithout AConsultant. Ifrequired pursuant tothe foregoing subsection (a)(2),a certificate may be delivered bytheCity(executedbythe City Representative)without a ConsultantifNetRevenuesfortheBase Period (confirmedbyan independent auditor)conclusivelydemonstratethattheParityRequirementwillbe fulfilledcommencingwiththefirstfullfiscal year followingthedate
onwhichanyportion of interest on theseries of Future Parity Bonds then being issued willnot be paidfromtheproceedsofsuch series of Future Parity Bonds.
D. Certificate ofa Consultant.Unless compliance with the requirements of subsection (a)(2)have beenotherwisesatisfied(asprovided in (b)or (c)above),compliance withthe Parity Requirement shall bedemonstratedconclusively by a certificate ofa Consultant.
InmakingthecomputationsofNet Revenues for thepurposeofcertifyingcompliance withthe ParityRequirement,the Consultant shall use as a basis the Net Revenues (whichmay be based uponunauditedfinancialstatementsoftheCity if the audit has not yet been completed)for the BasePeriod.Such Net Revenues shall be determined byaddingthefollowing:
1. The historical net revenue of theCityfor the Base Period being issued as determined by aConsultant.
2. The net revenue derived from thosecustomers of the Citythathave become customersduringsuch12-month period or thereafterand prior tothe date ofsuch certificate,adjustedtoreflectafullyear's net revenue from each such customer tothe extent such net revenuewasnotincluded in (1)above.
3. The estimatedannual netrevenueto be derived from any person,firm, association,private
or municipal corporation under any executed contract for service,whichnetrevenuewas notincluded in anyof the sources of net revenue described inthissubsection (d).
4. The estimated annual net revenue tobe derived from the operation of any additions orimprovementstoorextensionsoftheCityunderconstructionbutnot completed at thetimeof such certificate and not being paid for out of the proceeds of sale ofsuch Future ParityBonds being issued,and which net revenue is not otherwiseincluded in any of the sourcesofnetrevenuedescribedinthissubsection(d).
5. The estimated annual net revenue to be derived from the operation of any additionsandimprovementstoorextensions of theCitybeing paid for out of the proceeds of sale ofsuchBonds being issued.
In the event the Citywillnot derive any revenue as a result of the construction of theadditions,improvements or extensions being made or tobe madetotheSystem withintheprovisionsofsubparagraphs(4)and (5)immediately above,theestimatednormalCosts ofMaintenance and Operation (excludingany transferof money toother funds of theCityandlicense fees,taxes and payments in lieu oftaxespayable to the City)of such additions,improvements and extensionsshall be deducted from estimated annual net revenue.
The words "historicalnet revenue"or "netrevenue"as used inthissubsection (d)shallmeantheRevenueoranypartorpartsthereoflessthenormalexpensesofmaintenanceandoperationoftheSystemoranypartorpartsthereof,but before depreciation.
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Ordinance No.2177
Page 14
Such "historicalnet revenue"or "net revenue"shall be adjusted to reflect the rates and
charges effectiveon thedate of such certificateifthere has been any change insuch rates
and charges duringor after such 12-consecutive-month period.
E.Subordinate Lien Obligations.Nothing herein contained shallprevent the Cityfrom issuing revenue
bonds or other obligations which are a charge uponthe Revenue of theSystem junioror inferior to
the payments required by this ordinance to be made out ofsuch Revenue to pay and secure the
payment of any outstandingParity Bonds.
F.Refunding Obligations.Nothing herein contained shall preventthe Cityfrom issuing revenue bonds
to refundmaturingParity Bonds forthe payment ofwhich moneysare not otherwise available.
Section 12.Form of Bonds.The Bonds shall be in substantially this form:
UNITEDSTATESOF AMERICA
STATEMENT OF INSURANCE
Financial Guaranty Insurance Policy No.230398E (the"Policy")with respect to payments due for
principal of and interest on this bond has been issued by Ambac Assurance Corporation ("Ambac
Assurance"). The Policy has been delivered toThe Bank ofNew York, New York,New York,as the
Insurance Trustee under said Policy and willbe held by such Insurance Trustee or any successor
insurance trustee.The Policy is on file and available for inspection at the principal office of the
Insurance Trustee and a copy thereofmay be secured from Ambac Assurance or the Insurance
Trustee.AIIpayments requiredtobe made under the Policy shallbe made in accordance with the
provisions thereof.The ownerof thisbond acknowledgesand consents tothe subrogationrights of
Ambac Assurance as morefullyset forth in the Policy.
No.$
STATE OF WASHINGTON
CITYOF MOSES LAKE
WATER ANDSEWER REVENUE BOND,2004
INTEREST RATE:MATURITYDATE:CUSIP NO.:
REGISTERED OWNER:CEDE &Co.
PRINCIPAL AMOUNT:
The City ofMoses Lake,Washington,a municipal corporationorganizedand existing under and by
virtue ofthe laws of theState of Washington (hereincalled the"City")hereby acknowledgesitselfto
owe and for value received promises to pay,but only from the sources and as hereinafter provided,
tothe RegisteredOwneridentifiedabove,orregistered assigns,on theMaturityDate identified above,
thePrincipal Amount indicated above and to pay interest thereon from October 1,2004,or themost
recent date towhich interest has been paid or dulyprovided for,at the Interest Rate set forth above,
payable on March 1, 2005,and semiannuallythereafter on the first days of each September and
March untilsuch principal sum is paidor payment has been duly provided for.
Both principal of and interest on this bond are payable in lawful money of the UnitedStates of
America.Interest and principal shall be paid as provided in the Blanket Issuer Letter of
Representations (the"Letter of Representations") by the Cityto The Depository Trust Company
("DTC").The fiscal agency of the State of Washington has been appointed by the City as the
authenticating agent,paying agent and registrar for the bonds of this issue (the "Registrar"),
Capitalized terms used in this bond that are not specifically defined have the meanings given such
terms in Ordinance No.of the City (the"Bond Ordinance").Reference is made to the Bond
Ordinance and any and all modifications and amendments theretofora description ofthe nature and
extent of the security for the bonds of this issue,the funds or revenues pledged,and the terms and
conditions upon which such bonds are issued.
This bond is one of an authorized issue of bonds of the City of like date and tenorexcept as to
number, amount, rate ofinterest and date ofmaturity intheaggregate principalamount of$7,015,000.
This issue ofbonds is authorized by theBond Ordinance for the purposes of providing moneytopay
part of the cost of construction and acquisitionof certain improvements to the System,all in
conformity withthe laws ofthe State of Washington and ordinances of the City.
This bond and thebonds ofthis issue are payable solely from the special funds of theCity defined
as the "Bond Fund" inthe Bond Ordinance.The Cityhas irrevocably obligatedand bound itselfto pay
intothe Bond Fund out of theRevenue ofthe System or from such other moneysas may be provided
thereforcertainamounts necessary to pay and secure thepayment of the principal and interest on
such bonds.The bonds ofthisissue are not generalobligations of the City.
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OrdinanceNo.2177Page15
The Cityhas designated the bonds of this issue as qualified tax-exemptobligations for purposes ofSection265(b)of the Internal Revenue Code of 1986.
The bonds of this issue are issued under and in accordance withtheprovisionsof the Constitutionandapplicablestatutes ofthe State ofWashington and duly adopted ordinances of theCity. The Cityherebycovenantsandagreeswiththeownerofthisbondthatitwill keep and perform all thecovenantsofthisbondandoftheBond Ordinance tobe by itkept and performed,and reference isherebymadetotheBondOrdinanceforacompletestatement ofsuch covenants.
The Citydoes hereby pledge and bind itself toset aside from the Revenue Fund out of therevenueOoftheSystemandtopayintotheBondFund and theReserve Fund thevarious amounts requiredbytheBondOrdinancetobepaidintoandmaintainedinsuchFundandaccount,all within the timesprovidedbytheBond Ordinance.To theextent more particularly provided by theBond Ordinance,thearnounts so pledged to be paid from theRevenue Fund out ofthe revenue oftheSystem intotheBondFundandtheaccountthereinshallbealien and charge thereon equal in rank to the lien andchargeuponsaidrevenueoftheamountsrequiredtopayandsecurethepayment of revenue bondsoftheCityhereafter issued on a parity with the bonds of this issue andsuperior to allother liens andchargesofanykindornatureexcepttheCosts of Maintenance and Operation of the System.
The pledge of Revenue of theSystem and other obligationsof the City under the Bond Ordinance
may be discharged at orpriortothematurityor redemption ofthebonds ofthisissue upon themakingofprovisionforthepaymentthereofonthetermsandconditionssetforth in the Bond Ordinance.
The bonds ofthis issue are not subject to redemption prior totheirstated maturities.
This bond shallnotbe validor become obligatory for any purpose or be entitledto any securityorbenefitundertheBond Ordinance until the Certificate of Authentication hereon shall have beenmanuallysigned by theRegistrar.
Itis hereby certified that allacts, conditions,and thingsrequired by the Constitution and statutes oftheState of Washington toexist,to have happened, been done,and performedprecedent to and intheissuance of this bond have happened,been done, and performed.
INWITNESS WHEREOF,the Cityof Moses Lake, Washington has caused thisbond tobe signedwiththefacsimileormanual signature of the Mayor,to be attested by the facsimile or manualsignatureoftheCity's Finance Director,and thecorporate seal ofthe City tobe reproducedhereon,all as of thisist day of October,2004.
CITYOF MOSES LAKE,WASHINGTON
By Is/ facsimile or manualMayor(SEAL)
ATTEST:
Is/ facsimile or manual
Finance Director
The Registrar's certificateauthenticationon theBonds shall be in substantially thefollowingform:
CERTIFICATE OF AUTHENTICATION
Date ofAuthentication:,2004
This bond is one ofthebonds described inthe within-mentioned Bond Ordinance and is one of theWaterandSewerRevenue Bonds, 2004 ofthe City of Moses Lake,Washington, dated October 1,2004.
WASHINGTON STATE FISCALAGENCY,Registrar
By
Authorized Signer
Section 13. Execution of Bonds.The Bonds shall be executed on behalf of the City with the manual orfacsimilesignature oftheMayor,shallbe attested bythemanual or facsimile signature oftheFinance Director.
Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited,manually executed by the Registrar,shall be valid or obligatory for any purpose or entitled tothe benefits ofthisordinance.Such Certificate of Authentication shall be conclusive evidence that the Bonds soauthenticatedhavebeendulyexecuted,authenticated,and delivered hereunder and are entitled to thebenefitsofthisordinance.
Incase either ofthe officerswhoshallhave executedtheBonds shall cease tobe an officer or officers oftheCitybeforetheBondssosignedshallhave been authenticated ordelivered bytheRegistrar,or issued by the
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Ordinance No. 2177
Page 16
City,such Bonds shall be valid nevertheless and may be issued by the City with the same effect as though
the persons who had executed such Bonds had not ceased to be such officers,
Section 14. Defeasance. In the event that moneyand/or Governmental Obligations maturing at such time
or times and bearing interest to be earned thereon in arnountssufficient to redeem and retire any bonds
payableout of the Bond Fund in accordance withtheirterms are irrevocably set aside ina special account
toeffectsuch redemptionand retirement,then no further paymentsneedbe made intothe Bond Fund for the
paymentoftheprincipal ofand interest on such Bonds and the owner ofsuch Bonds shallcease tobe entitled
toanylien, benefit orsecurity ofthisordinance except the righttoreceive thefunds so set aside and pledged,
and such Bonds shallbe deemed not to be outstanding hereunder.
Within 45 days of any defeasance of Bonds,the City shall provide notice of defeasance of Bonds to
Registered OwnersofBonds being defeased, and tothe Insurer,ifany,and toeach NRMSIR and SID,ifany,
in accordance with Section 19.
Section 15.Lostor Destroyed Bonds.Incase any Bonds shall be lost, stolen or destroyed,the Registrar may
authenticate and deliver a newBond or Bonds oflike amount,date and tenortothe owner thereofupon the
owner's payingthe expenses and charges ofthe Registrar and the City inconnectiontherewithand upon his
filingwiththe Registrar and theCityevidence satisfactory toboth thatsuch Bond orBonds were actually lost,
stolen ordestroyed and ofhis ownership thereof,anduponfumishing theCityand theRegistrar withindemnity
satisfactory toboth.
Section 16. Sale of Bonds. The City hereby accepts the writtenofferof the Underwriter to purchase the
Bonds at theprice setforth inits purchase offer presented tothisCounciland under theterms,conditions and
covenants of the Bonds as set forth herein.The City Representative is authorized and directed to execute
the purchase offer presented bythe Undenwriter.
The CityAdministrator and theFinance Director are hereby authorized toreview and approveon behalf of the
Citythepreliminary andfinal OfficialStatement relativetotheBonds withsuch additions and changes as may
be deemed necessary and advisable to them.The Preliminary Official Statement for the Bonds, dated
September 13,2004, is hereby deemed final for purposes of Securities and Exchange Commission
Rule 15c2-12.
The Finance Director and other City officials,agents and representatives are hereby authorized and directed
to do everything necessary forthe promptissuance,execution and delivery of theBonds tothe Underwriter,
and for the proper use and application of theproceeds ofsale of the Bonds.
Section 17.Disposition of Bond Proceeds. The accrued interest received with respect tothe Bonds shall be
deposited into the Bond Fund and used to pay interest on the Bonds coming due on March 1,2005.From
the proceeds of the Bonds,a sum sufficient toestablish the Reserve Requirement-2004 shall be deposited
into the Reserve Fund-2004.The Finance Director has heretofore established the Operations Complex
Construction Fund #472 within theWater Sewer Fund of the City (the"Project Fund"). The balance ofthe
proceedsof sale of the Bonds shallbe deposited intheProject Fund and shallbe expended solely to paythe
cost of issuing and selling the Bonds and,togetherwith other available moneys of the City, shall be used to
undertake the Project. Money in the Project Fund shall be invested by the Finance Director,pending
disbursement,in any legal investment for City funds.
Section18. Notices and Payment Procedure Pursuant to Insurance Policy,
A.Pavments Under the Insurance Policy. As long as the Insurance Policy shall be in fullforce and
effect,the Cityand the Registrar agree to complywith the following provisions:
1.Atleast one day prior toanyinterest payment date,the Citywilldetermine whether therewill
be sufficient funds inthe Bond Fund topay theprincipal of or interest on the Bonds on such
interest payment date.IftheCitydetermines thattherewillbe insufficient funds insuch fund,
it shall so notify the Insurer.Such notice shall specify the amount of the anticipated
deficiency,theBonds towhich such deficiency is applicable andwhethersuch Bonds willbe
deficient as to principal or interest,or both,ifthe Cityhas not so notifiedthe Insurer at least
one day priortoan interest payment date,the Insurer willmake payments of principal or
interest due on the Bonds on or before the first day next following the date on whichthe
Insurer shall have received notice of nonpayment.
2. The City shall,after giving notice tothe Insurer as provided in(1)above,make available to
the Insurer and,atthe Insurer's direction,toThe Bank of NewYork,inNewYork,New York,
as insurance trusteefor the Insurer or any successor insurance trustee (the"Insurance
Trustee"),the registration books of the City maintained by the Registrar,if any,and all
records relating to thefunds and accounts maintainedunder thisordinance.
3.the City shall provide the Insurer and the Insurance Trustee with a list of registered owners
of Bonds entitledtoreceive principalor interest payments from the Insurer under theterms
of the Insurance Policy, and shallmake arrangementswiththe Insurance Trustee (i)tomail
checks or drafts to the registeredowners ofBonds entitled toreceive fullor partial interest
payments from theInsurerand (ii)topay principal upon Bondssurrendered totheInsurance
Trustee bythe registeredowners ofBonds entitled toreceive fullor partial principal payments
from theInsurer.
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Ordinance No. 2177Page17
4.The City shall,at thetimeit provides notice to the Insurer pursuant to (1)above,notifyregisteredownersof Bonds entitledtoreceive thepayment of principalor interest thereonfromtheInsurer(i)as tothefact of such entitlement,(ii)that theInsurer willremittothemallorapartoftheinterestpaymentsnextcomingdueuponproof of bondholder entitlementtointerestpaymentsanddeliverytotheInsuranceTrustee, informsatisfactoryto the InsuranceTrustee, of an appropriate assignment of theregistered owner's right to payment,(iii)thatshouldtheybe entitled to receive full payment of principal from the Insurer,they mustsurrender their Bonds (alongwith an appropriate instrument of assignment in formsatisfactorytotheInsuranceTrusteetopermitownershipofsuchBondstoberegisteredinthenameoftheInsurer)for payment to the Insurance Trustee, and (iv)thatshouldthey beOentitledtoreceivepartialpaymentof principal from the Insurer,they must surrender theirBondsforpaymentthereonfirsttotheRegistrarwhoshallnoteonsuchBondstheportionoftheprincipal paid by the Registrar,and then,along with an appropriate instrument ofassignmentinformsatisfactorytotheInsuranceTrustee,tothe Insurance Trustee,whichwillthenpaytheunpaid portion of principal,
5. In theevent that the Registrar has notice thatany payment of principal of or interest on aBondwhichhas become due for payment and whichis made toa bondholder byor on behalfoftheCity has been deemed a preferential transfer and theretofore recovered from itsregisteredownerpursuanttotheUnited States Bankruptcy Code by a trusteein bankruptcyinaccordance with thefinal,nonappealable order of a court having competentjurisdiction,the Registrar shall,at the time the Insurer is notified pursuant to (1)above, notify allregisteredownersthatintheeventthatanyregisteredowner'spayment is so recovered,such registered owner will be entitled to payment from the Insurer tothe extent of such
recoveryifsufficientfunds are not otherwise available,andthe Registrar shall furnish totheInsurer its records evidencing thepayments of principalofand interest on.theBonds whichhave been made bythe Registrar, and subsequently recovered from registered owners andthedatesonwhichsuchpaymentsweremade.
6. In additiontothose rights granted the Insurer under thisordinance,theInsurer shall,totheextentitmakes payment of principal ofor interest onBonds, become subrogatedtotherightsoftherecipientsofsuchpaymentsinaccordancewiththetermsoftheInsurancePolicy,andtoevidencesuch subrogation (i)inthecase of subrogation as toclaims for past due interest,theRegistrar shallnotetheInsurer's rights as subrogee on the registration books ofthe Citymaintained bythe Registrar upon receipt from the Insurer of proof of thepayment of interestthereontotheregisteredownersoftheBonds, and (li)inthecase ofsubrogation as to claims
O for past due principal,the Registrar shall note the Insurer's rights as subrogee on theregistration books of theCitymaintainedbytheRegistrarupon surrender of theBonds bytheregisteredownersthereoftogetherwithproofofthepayment of principal thereof.
B.Consent oftheInsurer. Any provisionofthisordinance expressly recognizing or granting rights in ortotheInsurermaynotbeamended in any manner which affects the rightsoftheInsurer hereunder
without the priorwritten consent of theInsurer.
C.Consent ofthe Insurer inAdditiontoBondholder Consent.Unless otherwise provided inthissection,the Insurer's consent shall be required in addition to bondholderconsent,when required,for thefollowingpurposes:(i)execution and delivery of any amendment, supplement or change to ormodification of this ordinance;(ii)removal of the Registrar and selection and appointment of anysuccessorRegistrar(otherthanthedesignated State fiscal agent);and (iii)any initiationor approvalofanyactionnot described in (i)or (li)above which requires bondholder consent.
D.Consent of the Insurer inthe Event of Insolvencv.Any reorganizationorliquidation plan withrespecttotheCitymustbeacceptabletotheInsurer. In the eventofany reorganization or liquidation,theInsurershallhavetherighttovoteonbehalf of all bondholders who hold Ambac AssuranceCorporation-insured bonds absent a default by the Insurer undertheInsurance Policy.
E.Consent ofthe Insurer Upon Default.Anythinginthisordinanceto thecontrarynotwithstanding,upontheoccurrenceandcontinuance of an event of default as defined herein,the insurer shall be entitledtocontrolanddirecttheenforcement of all rights and remedies granted to thebondholders for thebenefit of the bondholders underthisordinance.
F.The Insurer as Third Party Beneficiary.To the extent thatthis ordinarice confersupon or gives orgrantstotheInsureranyright,remedy or claim under or by reason of thisordinance,the Insurer isOherebyexplicitlyrecognizedasbeingathird-partybeneficiary hereunder and may enforce anysuchright,remedy or claim conferred,given orgranted hereunder.
G.Parties Interested Herein. Nothing in thisordinance expressed or implied is intended or shall beconstruedtoconferupon, or togive or grant to,any person or entity, other thanthe City,the InsurerortheRegistrar,and the registered ownersof the Bonds,any right,remedy or claim under or byreasonof this ordinance or any covenant, condition or stipulation hereof,and all covenants,stipulations,promises or agreements in thisordinance containedby and on behalf of the CityshallbeforthesoleandexclusivebenefitoftheCity,the Insurer,the Registrar,and the registered ownersoftheBonds.
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Ordinance No. 2177
Page 18
H.Rights of Insurer. While the Insurance Policy is ineffect,the Cityshall furnish tothe Insurer (tothe
attention of theSurveillance Department,unless otherwise indicated):
1.as soon as practicable after the filingthereof,a copy of any financial statement of the City
and a copy of any auditand annual report ofthe City;
2.a copy of any notice tobe givento the registered owners ofthe Bonds, including,without
limitation,notice ofany redemption of or defeasance of Bonds,and any certificate rendered
pursuant to thisordinancerelating to the security for the Bonds;and
3. such additional information the Insurer may reasonably request.
I. The City shall notifythe Insurer of anyfailure of the City toproviderelevant notices or certificates.
J.The City willpermit the Insurer to discuss the affairs,finances and accounts of the City or any
information theInsurer mayreasonably request regarding thesecurity for theBonds withappropriate
officers ofthe City.The Citywillpermit the Insurer tohave access toand tomake copies ofallbooks
and records relating tothe Bonds at any reasonable time.
K.The Insurer shall have the right to direct an accounting at the City's expense,and the City's failure
tocomply with such direction within 30 days after receipt ofwrittennotice at thedirection fromthe
Insurer shall be deemed a default hereunder;provided, however,that ifcompliancecannot occur
withinsuch period,thensuch period willbe extended so long as compliance is begun within such
period and diligently pursued, but only ifsuch extension would not materiallyadverselyaffect the
interests of any registered owner of theBonds.
L Notwithstanding any other provisionof thisordinance,theCityshall immediately notifytheInsurer if
at any timethere are insufficient money tomake anypayments ofprincipal and/orinterest as required.
Section 19. Undertaking to Provide OnaoinqDisclosure.
A.Contract/Undertaking. This section constitutesthe City's written undertakingfor the benefit of the
ownersoftheBondsas required by Section (b)(5)of the Rule.
B.Financial Statements/Operating Data. The City agrees to provide or cause to be provided to each
NRMSIRand tothe SID,ifany,in each case as designated by the SEC inaccordance withthe Rule,
thefollowingannualfinancialinformation and operatingdata for the priorfiscal year (commencingin
2005 for the fiscal year ended December 31,2004):
1.Annual financial statements,which statements mayor may not be audited,showingending
fund balances for the System prepared in accordance withthe Budget Accounting and
Reporting System prescribed bytheWashington State Auditor pursuant to RCW 43.09.200;
2.The principal amount of Parity Bonds;
3.Debt service coverage for Parity Bonds;
4. Rates for the System;and
6. Number of customers of the System.
Items 2-5 shall be required onlyto the extent that such information is not included in the annual
financial statements.
The information and data described above shall be provided on or before nine monthsafter theend
of theCity's fiscal year.The City's current fiscal year ends December 31. The City mayadjustsuch
fiscal year byproviding written noticeof the change offiscal year to each-then existing NRMSIRand
the SID, ifany.Inlieu of providing such annualfinancial information andoperatingdata,thètity may
cross-reference to other documents provided to the NRMSIR,the SID or to the SEC and, ifsuch
document is a final officialstatement within the meaning of the Rule,available from the MSRB.
Ifnot provided as part of theannualfinancial information discussed above,theCityshall provide the
City's audited annual financial statement prepared in accordance with the Budget Accounting and
Reporting System prescribedby the Washington State Auditor pursuant to RCW43.09.200 (orany
successor statute)when and ifavailable toeach then existing NRMSIR and the SID,ifalTy,
C.Material Events.The Cityagrees to provide orcause to be provided,ina timelymanner,tothe SID,
ifany,and toeach NRMSIR or totheMSRB noticeof the occurrence of any ofthe followingevents
withrespect to the Bonds,ifmaterial:
1.Principal and interest payment delinquencies;
2.Non-payment relateddefaults;
3.Unscheduled draws on debt service reserves reflecting financial difficulties;
COML Council Packet 4-9-24, Page 35 of 222
Ordinance No. 2177
Page 19
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5.Substitution of credit or liquidityproviders,or theirfailure to perform;
6.Adverse tax opinions or events affecting thetax-exemptstatus ofthe Bonds;
7.Modifications to the rights of Bond owners;
8. Bond calls (optional,contingentorunscheduled Bond calls other thanscheduled sinkingfundredemptionsforwhich notice is given pursuant to Exchange Act Release 34-238560);
9.Defeasances;
10. Release,substitutionor sale ofproperty, securing repayment oftheBonds;and
11. Rating changes.
Solely for purposes of disclosure, and not intending to modify the undertaking,the Cityadvises thatthereisnoproperty securing repayment of the Bonds,as the City lacks legal authorityfor suchmeasure.Iffurther changes inthelaw permit such measure,and iftheCitysubsequently choosestoprovide such property as security for the Bonds,theCitywillprovide noticeofsuchestablishment
or provision and undertake to providenotices of materialevents relating thereto,should such events
occur.
D.Termination/Modification.The City'sobligations toprovide notices of material events shall terminateuponthelegaldefeasance,prior redemption or payment infullofallofthe Bonds.Anyprovision ofthis section shallbe nulland voidif the City(1)obtains an opinion of nationally recognized bondcounselto the effect that the portion of the Rule that requires that provision is invalid,has beenrepealedretroactivelyorotherwise does not apply tothe Bonds and (2)notifieseach NRMSIR andtheSID,ifany,of such opinion and thecancellation of thissection.The Citymay amend thissection
with an approving opinion of nationally recognized bond counsel in accordance with the Rule.
E.Bond Owner's Remedies Under This Section.The right of any bondowner or beneficial owner ofBondstoenforcetheprovisions ofthissection shall be limitedtoa right toobtainspecificenforcementoftheCity's obligations underthissection,and any failure by the Citytocomply with theprovisionsofthisundertakingshall not be an event of default with respect to theBonds. For purposes ofthis
0 section,"beneficialowner"means any person who has thepower,directly or indirectly,to vote orconsentwithrespectto,or todispose of ownership of,any Bonds, including persons holding Bonds
throughnominees or depositories.
F. DisclosureUSA. The Citymay elect to submit the information requiredby thisSection 19 to be filedwiththeNRMSIRsandtheSID, if any,directly to DisclosureUSA.org unless or until the SECwithdraws its approval of thissubmission process.
Section 20. Effective Date. The CityCouncildeclares thatan emergency exists andthisordinanceshall takeeffect immediately as providedby law upon one reading if2/3 ofthe entireCityCouncil present vote infavor
of passage.
Adopted by the City Council and signed by its Mayor o ember 28, 2 .
RonaldC. Covey, MayorATTES
At6naldR Coni,Fi6ance Director
APP VED AS TO FORM:
rn .6it er,CityAttorney'
COML Council Packet 4-9-24, Page 36 of 222
CERTIFICATE OF FINANCEDIRECTOR
IDO HEREBY CERTIFY that Iam the dulychosen,qualified and acting Finance Director oftheCity
of Moses Lake,Washington (the"City"),and keeper of the records of the City Council (the"Council");and
i HEREBY CERTIFY:
1.That the attached ordinance is a trueand correct copy ofOrdinance No.of the City
(the"Ordinance"),as finally passed at a regular meeting ofthe Councilheld on the 28th day of September,
2004,and dulyrecorded in myoffice.
2.That said meeting was duly convened and held in all respects in accordancewithlaw,and
tothe extentrequired by law,due and proper noticeof such meeting was given;thata quorum was present
throughoutthemeeting and a legally sufficientnumber of members ofthe Council votedintheproper manner
for thepassage oftheOrdinance;thatallother requirements and proceedings incident tothe proper passage
of the Ordinance have been duly fulfilled,carried out and otherwise observed,and that I am authorized to
execute thiscertificate.
INWITNESS WHEREOF,I have hereunto set my hand t is 28th of September,2004.
Finance Director
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26 COML Council Packet 4-9-24, Page 37 of 222
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CITY OF MOSES LAKE
WATER AND SEWER REVENUE BONDS,2011
ORDINANCE NO.2626
AN ORDINANCE OF THE CITY OF MOSES LAKE,
WASHINGTON;AUTHORIZING CERTAIN ADDITIONS,
BETTERMENTS AND IMPROVEMENTS TO THE CITY'S
COMBINED SYSTEM OF WATER AND SEWERAGE;
AUTHORIZING THE ISSUANCE OF WATER AND SEWER
REVENUE BONDS OF THE CITY TO PAY THE COSTS OF
SAID IMPROVEMENTS IN THE AGGREGATE PRINCIPAL
AMOUNT OF $4,905,000;FIXING THE DATE,FORM,
TERMS,MATURITIES AND COVENANTS OF THE BONDS;
\)APPROVING A PURCHASE CONTRACT FOR THE BONDS;
RESERVING THE RIGHT TO ISSUE REVENUE BONDS ON A
PARITY WITH THE BONDS HEREIN AUTHORIZED UPON
COMPLIANCE WITH CERTAIN CONDITIONS AND
APPROVING AN AGREEMENT FOR ONGOING
DISCLOSURE.
u
Approved:August 9,2011
Prepared by:
K&L Gatesllp
Seattle,Washington
COML Council Packet 4-9-24, Page 38 of 222
CITY OF MOSES LAKE
ORDINANCE NO.2626
TABLE OF CONTENTS*
Page
Section 1.Definitions 2
Section 2.Compliance with Parity Conditions 14
Section 3. Findings and Purposes;Plan ofAdditionsand Bettermentsto the System 15
Section 4.Authorization and Description ofBonds 16
Section 5.Registration,Exchange and Payments 17
Section 6.Redemption and Purchase 22
Section 7.Revenue Fund and Priority ofApplication of Revenue 22
Section 8.Bond Fund and Reserve Fund 24
Section 9.Specific Covenants 29
Section 10.Tax Covenants 33
Section 11.Issuance ofFuture Parity Bonds 35
Section 12.Form ofBonds 39
Section 13.Execution ofBonds 42
Section 14.Defeasance 42
Section 15. Lost or Destroyed Bonds 43
Section 16.Sale ofBonds 43
Section 17.Disposition ofBond Proceeds 44
Section 18.Undertaking to Provide Ongoing Disclosure 44
Section 19.Effective Date ,49
*This Table of Contents and the Cover Page are for convenience of reference and are not
intended to be a part ofthis ordinance.
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ORDINANCE NO.2626
AN ORDINANCE of the City of Moses Lake, Washington;
authorizing certain additions, betterments and improvements to the
City's combined system of water and sewerage;authorizing the
issuance of water and sewer revenue bonds ofthe City to pay the
costs of said improvements in the aggregate principal amount of
$4,905,000;fixing the date, form,terms,maturities and covenants
of the bonds;approving a purchase contract for the bonds;
reserving the right to issue revenue bonds on a parity with the
bonds herein authorized upon compliance with certain conditions;
and approving an agreement for ongoing disclosure.
WHEREAS,the City ofMoses Lake,Washington (the "City")operates a combined water
and sewer system (hereinafter further defined asthe "System");and
WHEREAS,the System is in need of additions,improvements and betterments (the
"Project"); and
WHEREAS,pursuant to RCW chs.35.92,35.41 and 39.44, the City is authorized to issue
\)its revenue bonds payable and securedby the net revenue ofits System under terms approvedby
the City Council (the "Council")by ordinance; and
WHEREAS,the City has outstanding its Water and Sewer Revenue Bonds,2004 (the
"2004 Bonds")payable from revenues of the System issued under Ordinance No. 2177, dated
October 1,2004,and presently outstanding in the principal amount of$6,875,000; and
WHEREAS,the ordinance authorizing the 2004 Bonds provides that additional water and
sewer revenue bonds may be issued on a parity with such bonds if certain conditions are met;
and
WHEREAS,it appearsto the Council ofthe City that such conditions can be met and that
it is in the best interests ofthe City and its inhabitants thatthe Bonds be issued on a paritywith
the outstanding waterandsewerrevenuebonds oftheCity;and
COML Council Packet 4-9-24, Page 40 of 222
WHEREAS,Martin Nelson & Co., Inc.,Seattle,Washington,has submitted to this
Council an offer to purchase the bonds authorized herein in accordance with the terms of this
ordinance and this offer is acceptable to the Council;
NOW,THEREFORE,THE CITY COUNCIL OF THE CITY OF MOSES LAKE,
WASHINGTON,DO ORDAIN as follows:
Section 1.Definitions.As used in this ordinance the following definitions shall
applyunless a differentmeaning clearlyappearsfromthe context:
Accreted Value means (1) with respect to any Capital Appreciation Bonds, as ofany date
of calculation,the sum ofthe amount set forth in the ordinance authorizing their issuance as the
amount representing the initial principal amount of such Capital Appreciation Bonds plus the
interest accumulated, compounded and unpaid thereon as of the most recent compounding date,
or (2)with respect to Original Issue Discount Bonds, as of the date of calculation,the amount
representing the initial public offering price of such Original Issue Discount Bonds plus the
amount of discounted principal which has accreted since the date of issue.In each case, the
Accreted Value shall be determined in accordance with the provisions of the ordinance
authorizing the issuance ofsuch Balloon Maturity Bonds.
Annual Debt Service means the total amount of Debt Service for any Parity Bond or
series ofParity Bonds or other evidences ofindebtednesspayablefrom Revenue ofthe System in
any fiscal year or Base Period.
Balloon Maturity Bonds meansany evidences of indebtedness ofthe City payable from
Revenue of the System that are so designated in the ordinance pursuant to which such
indebtedness is incurred.
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Base Period means any consecutive 12-month period selected by the City out of the
36-month period next preceding the date of issuance of an additional series of Future Parity
Bonds;provided,however,that for so long as the 2004 Insurance Policy is in effect,the 12-
month period selected bythe City shall be within the24-month period next preceding the date of
issuance ofan additional series ofFuture Parity Bonds.
BeneficialOwner means the beneficialowner of all or a portion of a Bond while such
Bond is in fully immobilized form.
Bond Fund means 2011 Bond Fund #450 maintained by the City within the Water/Sewer
Fund and also shall include any fund established for the payment of debt service on Parity
Bonds.
Bond Register means the books or records maintained by the Registrar containingthe
name and mailing address ofthe owner ofeach Bond or nominee ofsuch owner and the principal
amount and number ofBonds held by each owner or nominee.
Bonds means the $4,905,000 par value City of Moses Lake,Washington,Water and
Sewer Revenue Bonds,2011 authorized to be issued pursuant to this ordinance.
Bond Year means each one-year period that ends on the date selected by the City. The
first and last Bond Years may be short periods.If no day is selected by the City before the
earlier of the final maturity date of the Bonds or the date that is five years after the date of
issuance of the Bonds,Bond Years end on each anniversary of the date ofissue and on the final
maturity date ofthe Bonds.
Capital Appreciation Bonds means any Future Parity Bonds all or a portion of the
interest on which is compounded,accumulated and payable only upon redemption or on the
maturity date of such Capital Appreciation Bonds.If so provided in the ordinance authorizing
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their issuance, Future Parity Bonds may be deemed to be Capital Appreciation Bonds for only a
portion of their term. On the date on which Future Parity Bonds no longer are Capital
Appreciation Bonds, they shall be deemed outstanding in a principal amount equal to their
Accreted Value.
City meansthe City ofMosesLake, a municipal corporation ofthe State ofWashington.
City Representative means the Mayor,City Manager,Finance Director or such other
official or employee ofthe City designated in writingbyeither ofthe foregoing
Code meansthe United StatesInternal RevenueCode of 1986,as amended, togetherwith
all applicable rulings and regulations heretofore or hereafter promulgated thereunder.
Consultant means at any time an independent municipal financial consultant appointed
by the City to perform the duties of the Consultant as required by this ordinance. For the
purposes ofdelivering any certificate required by Section 11 hereof and making the calculation
required by Section 11 hereof, the term Consultant shall also include any independent public
accounting firm appointed by the City to make such calculation or to provide such certificate.
Costs ofMaintenance and Operation means all reasonable expenses incurred by the City
in causing the System of the City to be operated and maintained in good repair, working order
and condition, but shall not include any payments for debt service or into reserve funds,
depreciation or taxes levied or imposed by the City or paymentsto the City in lieu of taxes, or
capital additions or capital replacements to the System.
Council means the City Council as the general legislative authority of the City as the
sameshallbedulyand regularly constituted from timeto time.
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Debt Service means,for any period oftime,
(a) with respect to any outstanding Original Issue Discount Bonds or Capital
Appreciation Bonds which are not designated as Balloon Maturity Bonds in the ordinance
authorizing their issuance,the principal amount thereof shall be equal to the Accreted Value
thereof maturing or scheduled for redemption in such period, and the interest payable during
such period;
(b) with respect to any outstanding Fixed Rate Bonds, an amount equal to (l)the
principal amount ofsuch Fixed Rate Bonds due or subject to mandatory redemption during such
period and for which no sinking fund installments have been established,(2)the amount of any
payments required to be made during such period into any sinking fund established for the
payment of any such Fixed Rate Bonds,plus (3)all interest payable during such period on any
such outstanding Fixed Rate Bonds and with respect to Fixed Rate Bonds with mandatory
sinking fund requirements,calculated on the assumption that mandatory sinking fund
installmentswill be appliedto the redemption or retirement ofsuch FixedRate Bondsonthe date
specified in the ordinanceauthorizingsuch Fixed Rate Bonds; and
(c) with respect to all other series of Parity Bonds, other than Fixed Rate Bonds,
Original Issue Discount Bonds or Capital Appreciation Bonds,specifically including but not
limited to Balloon Maturity Bonds and Parity Bonds bearing variable rates ofinterest, an amount
for any period equal to the amount which would have been payable for principal and interest on
such Parity Bonds during such period computed on the assumption that the amount of Parity
Bonds as of the date of such computation would be amortized (l)in accordance with the
mandatory redemption provisions,if any, set forth in the ordinance authorizing the issuance of
such Parity Bonds, or if mandatory redemption provisions are not provided,during a period
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commencing on the date of computation and ending on the date 30 years after the date of
issuance (2) at an interest rate equal to the yield to maturity set forth in the 40-Bond Index
published in the edition of The Bond Buyer (or comparable publication or such other similar
index selected by the City) and published within ten days prior to the date of calculation or,if
such calculation is being made in connection with the certificate required by Section 11 hereof,
then within ten days ofsuch certificate,(iii) to provide for essentially level annual debt service of
principal and interest over such period. Debt Service shall be net of any interest funded out of
Bond proceeds. Debt Service shall include reimbursement obligations to providers of Qualified
Letters ofCredit and/or Qualified Insurance to the extent authorized by ordinance.
DTC means The Depository Trust Company, New York, New York,a limited purpose
trust company organized under the laws of the State of New York, as depository for the Bonds
pursuantto Section 5 hereof.
Finance Director means the duly qualified,appointed and acting Finance Director ofthe
City or any other officer who succeeds to the dutiesnow delegated to that office.
Fixed Rate Bonds means those Parity Bonds other than Capital Appreciation Bonds,
Original Issue Discount Bonds or Balloon Maturity Bonds issued under an ordinance in which
the rate ofinterest on such Parity Bonds is fixed and determinable through their final maturity or
for a specified period of time.If so providedinthe ordinance authorizing their issuance,Parity
Bondsmaybe deemedto beFixedRate Bondsfor onlya portion of theirterm.
Future Parity Bonds means any water and sewer revenue bonds which the City may
hereafter issue having a lienupon the Revenue of the System for the paymentof the principal
thereofand interest thereon equal to the lien upon the Revenue of the System ofthe Bonds and
the 2004 Bonds.
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General Fund is the City's operating fund,accounting for all financial resources of the
general government,exceptthose required to be accounted for in anotherfund.
Government Obligations has the meaning given such term in RCW Ch. 39.53, as such
chaptermaybehereafteramended or restated.
Investment Earnings means all earnings in any form whatsoever derived from
Investments.
Investments means any investments permitted to the City by law ofmoney required to be
deposited in anyfund or account oftheWater/Sewer Fund oftheCityexceptmoneydeposited in
any escrow accountfor the purposeof refundingany ParityBonds and except any moneywhich
is subjectto paymentto the UnitedStatesTreasuryunderthe rebateprovisions ofthe Code.
Letter ofRepresentations means the Blanket Issuer Letter of Representations from the
CitytoDTC.
Maximum Annual Debt Service means highest dollar amount of Annual Debt Service in
any fiscal year or Base Period for all outstanding Parity Bonds and the Bonds and/or for all
subordinate lien evidences of indebtedness secured by Revenue of the System,as the context
requires.
Moody's means Moody's Investors Service,its successors and their assigns, and,if such
corporation shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency,Moody's shall be deemed to refer to any other nationally recognized
securities rating agency designated bythe City Representative.
MSRB means the Municipal Securities Rulemaking Board.
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Net Proceedst when used with referenceto the Bonds, means the principal amount ofthe
Bonds, plus accrued interestand original issue premium,if any, andless originalissue discount
and proceeds,ifany, depositedin the Reserve Fund-2011.
Net Revenue means Revenue ofthe System less Costs ofMaintenanceand Operation.
Original Issue Discount Bonds means Parity Bonds which are sold at an initial public
offering price of less than 95%of their face value and which are specifically designated as
Original Issue Discount Bonds in the ordinanceauthorizingtheir issuance.
Parity Bonds means the 2004 Bonds,the Bonds and any Future Parity Bonds.
Parity Requirement means Net Revenue equal to or greaterthan:
(a) 125%of Maximum Annual Debt Service for all Parity Bonds computed by
deducting from Annual Debt Service the Annual Debt Service for each series or issue of Parity
Bonds which is covered by ULID Assessments,and
(b) 100%of Maximum Annual Debt Service for all subordinate lien evidences of
indebtedness secured by Revenue ofthe System.
In determining the amount of Annual Debt Service "covered by ULID Assessments",Annual
Debt Service for each future year is reduced by the dollar amount of ULID Assessments
projected to be received during such future year,and the remaining outstanding ULID
Assessments are assumed to be paid in the remaining number of annual installments with no
prepayments.
Private Person means any natural person engaged in a trade or business or any trust,
estate,partnership,association,company or corporation.
Private Person Use means the use of propertyin atrade or business by a Private Person
if such use is other than as a member of the general public. Private Person Use includes
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ownership ofthe property by the PrivatePerson as well asother arrangements that transfer to the
Private Person the actual or beneficial use of the property (such as a lease,management or
incentive payment contract or other special arrangement)in such a manner as to set the Private
Person apart from the general public.Useof property asa member ofthe general publicincludes
attendance by the Private Person at municipal meetings or business rental of property to the
Private Person on a day-to-day basis if the rental paid by such Private Person is the same as the
rental paidby any Private Person who desires to rentthe property.Use of property by nonprofit
community groups or community recreational groupsisnottreatedas Private Person Useif such
use is incidental to the governmental uses of property, the property is made available for such
use by all such community groups on an equal basis and such community groups are charged
only a de minimis fee to cover custodialexpenses.
Project meansthe plan ofimprovements to the Systemauthorized in Section3 hereof.
Project Fund means the Operations Complex Construction Fund #472 within the
Water/Sewer Fund ofthe City.
Qualified Insurance means any non-cancelable municipal bond insurance policy or
surety bond issued by any insurance company licensed to conduct an insurance business in any
state of the United States (or by a service corporation acting on behalf of one or more such
insurance companies)which insurance company or companies,as ofthe time ofissuance ofsuch
policy or surety bond,are currently rated in one of the two highest Rating Categories by both
Moody's and S&P.
Qualified Letter of Credit means any irrevocable letter of credit issued by a financial
institution for the account of the City on behalf of registered owners of the Bonds, which
institution maintains an office, agency or branch in the United States and as of the time of
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issuance of such letter ofcredit, is currently rated in one of the two highest Rating Categories by
either Moody's or S&P.
Rate Covenant means Net Revenue in each fiscal year together with ULID Assessments
received in each fiscal year at least equal to the sum of(a) 125%of the amounts required in such
fiscal year to be paid as scheduled debt service (principal and interest) on all Parity Bonds minus
the amount of ULID Assessments collected in such year and (b) 100%of the amount of ULID
Assessments received in'such fiscal year.
RatingAgency means Moody's or S&P.
Rating Category means the generic rating categories of the Rating Agency, without
regard to any refinement or gradation of such rating category by a numerical modifier or
otherwise.
Registrar means the fiscal agency of the State of Washington, for the purposes of
registering and authenticating the Bonds,maintaining the Bond Register,effecting transfer of
ownership ofthe Bonds, and paying the principal of,premium,ifany, and interest on the Bonds.
Registered Owner means the person named as the registered owner of a Bond in the
Bond Register.For so long as the Bonds are held in book-entry only form, DTC shall be deemed
to be the sole Registered Owner.
Reserve Fund-2011 means the 2011 Bond Reserve Fund #451 maintained within the
Water/Sewer Fund.
Reserve Requirement-2011 means the lesser of (i) Maximum Annual Debt Servicewith
respectto the Bondsand (ii)1.25 times average Annual Debt Service withrespectto the Bonds;
provided,however,thatthe Reserve Requirement-2011 shallnot exceed an amount equal to 10%
ofthe aggregate ofthe initialparamount ofthe Bonds.
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Revenue Fund means the Water/Sewer Fund #410 within the Water/Sewer Fund
maintained by the Finance Director of the City and shall also include any other fund ofthe City
into which the Revenue ofthe System is deposited.
Revenue ofthe System or Revenue means all of the earnings and revenues received by
the City from the maintenance and operation of the System and connection and capital
improvement charges collected for the purpose of defraying the cost of capital facilities of the
System,includingInvestment Earnings,butexcluding government grants,proceedsfromthe sale
of System property, City taxes collectedby or through the System, principal proceeds of bonds
and earnings or proceeds from any investments in a trust, defeasance or escrow fund created to
defease or refund System obligations (until commingled with other earnings and revenues of the
System) or held in a special account for the purpose of paying a rebate to the United States
Government under the Code.Revenue of the System shall also include any federal or state
reimbursements of operating expenses to the extent such expenses are included as Costs of
Maintenance and Operation;provided,however,that Revenue of the System shall not include
ULID Assessments.Certain Investment Earnings may be transferred from the Revenue Fund to
the General Fund ofthe City, subject to the priorities established in Section 7 ofthis ordinance.
Rule means the SEC's Rule 15c2-12 under the Securities Exchange Act of 1934, as the
same may be amended from time to time.
S&P means Standard &Poor's Ratings,its successors and their assigns,and,if such
corporation shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency,S&P shall be deemed to refer to any other nationally recognized
securities rating agency designated bythe City Representative.
SEC means the U.S. Securities and Exchange Commission.
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System means the City's combined system of water supply and distribution,sanitary
sewage disposal and storm drainage,as the same may be added to, improved and extended for as
long as any Parity Bonds are outstanding. The term System also shall include any other utility
that may in the future be combined with the System.
2004 Bonds mean the City's outstanding Water and Sewer Revenue Bonds,2004,issued
under date ofOctober 1, 2004,pursuant to Ordinance No. 2177.
2004 Insurance Policy means the financial guaranty insurance policy with respect to the
Bonds issued by the Ambac Assurance Corporation, insuring the payment when due of the
principal ofand interest on the 2004 Bonds.
ULID means a utility local improvement district ofthe City. The City does not currently
have any existing utility local improvement districts.
ULID Assessments means the assessments levied in all ULIDs,the assessments in which
are payable into the Bond Fund, and shall include installments thereof and interest and any
penalties thereon.
Underwriter means Martin Nelson & Co., Inc., Seattle,Washington.
Variable Interest Rate means a variable interest rate or rates to be borne by a series of
Future Parity Bonds or any one or more maturities within a series of Future Parity Bonds. The
method ofcomputing such a variable interest rate shall be specified in the ordinance authorizing
such Future Parity Bonds, which ordinance also shall specify either (a)the particular period or
periods oftimeor manner of determining suchperiodor periods oftimefor which each value of
such variable interest rate shall remain in effect or (b) the time or times upon which any change
in such variable interest rate shall become effective.
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Variable Interest Rate Bonds means,for any period of time,Future Parity Bonds which
bear a Variable Interest Rate during that period,except that Future Parity Bonds the interest rate
or rates on which shall have been fixed for the remainder ofthe term thereofno longer shall be
deemed to be Variable Interest Rate Bonds.
Water/Sewer Fundmeans the proprietary fund ofthe City that accounts for the activities
ofthe System.
Rulesof Interpretation.Inthis ordinance,unlessthecontext otherwise requires:
(a) The terms "hereby,""hereof," "hereto," "herein,"hereunder"and any similar
terms, as used in this ordinance,refer to this ordinance as a whole and not to any particular
article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the
term "heretofore"shall mean before,the date ofthis ordinance;
(b) Words of the masculine gender shall meanand include correlativewords of the
feminine and neuter genders and words importing the singular number shall mean and include
the plural number and vice versa;
(c) Wordsimportingpersonsshallinclude firms,associations,partnerships(including
limited partnerships),trusts,corporations andotherlegalentities,including publicbodies,aswell
as natural persons;
(d) Any headings precedingthe text ofthe several sections ofthis ordinance, and any
table ofcontentsor marginal notes appendedto copies hereof, shall be solely for convenienceof
reference and shall not constitute a part of this ordinance,nor shall they affect its meaning,
construction or effect;and
(e) All references herein to "articles,""sections" and other subdivisions or clauses are
to the correspondingarticles, sections,subdivisions or clauseshereof.
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Section 2.Compliance with Parity Conditions The Council hereby finds and
determines,as required by Section 11 ofOrdinance No. 2177, as follows:
(1) That the Bonds are being issued for the purpose of providing funds to acquire,
construct,reconstruct, install, or replace equipment,facilities,additions,betterments, or other
capital improvementsto the System for which it is authorizedby law to issue revenue bonds;
(2) The City is not and has not been in default ofits Rate Covenant for the fiscal year
ending December 31, 2010;
(3) The Reserve Requirement-2011 shall be met no later than the date of issuance of
the Bonds;and
(4) At the time ofthe issuance and delivery ofthe Bonds, there will have been filed a
certificate of the Consultant demonstrating fulfillment of Section 11(D) or the City
Representative demonstrating fulfillment of Section 11(C)of Ordinance No. 2177.
The applicable parity conditions set forth in Ordinance No. 2177 having been complied
with,the Bonds shall be issued on a parity oflien with the 2004 Bonds.
The City hereby further covenants and agrees that the Bonds will not be issued and
delivered to the purchasers thereof as bonds on a parity with the 2004 Bonds until the certificate
required herein, in form and contents satisfactoryto the Cityand its counsel, has been filed with
the City.
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Section 3. Findings and Purposes:Plan of Additions and Betterments to the System.
The Council hereby finds that the public interest, welfare and convenience require the
construction, acquisition and installation of certainadditions and betterments to and extensions
of the City's water and sewer system (the "Project")and that said improvements are legally
required and/or economically sound,and will contribute to the conduct of the business of the
System in anefficient manner.
The City shall provide all equipment, connections and appurtenances together with all
work as may be incidental and necessary to complete the Project.The Project facilities shallbe
integrated into the System as required to providea fully operational facility.
The City may make such changes in or additions to the Projector in the construction or
design ofother facilities ofthe System asmay be foundnecessaryor desirable.Implementation
or completion of any specified improvement shall not be required if the Council determines that,
due to substantially changed circumstances, it has become advisable or impractical.If the
Projecthas eitherbeen completed, orits completion duly provided for,or its completion found to
be impractical,the City may apply the Bond proceeds or any portion thereof to other
improvements to the System, as the Council in its discretion shall determine. In the event that
the proceed of sale of the Bonds, plus any other moneys of the City legally available, are
insufficient to accomplish all of the Project provided by this section, the City shall use the
available funds for paying the cost of those improvements- for which the Bonds were approved,
deemed by the Council most necessary and to the best interest ofthe City.
The City shall acquire by purchase, lease or condemnation,all property, both real and
personal, or any interest therein, or rights-of-way and easements that may be found necessary to
acquire, construct and install the Project.
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The estimated cost of this plan of additions and betterments and all costs incidental
thereto (including costs of issuance ofthe Bonds and funding ofthe Reserve Requirement-2011),
is hereby declared to be as nearly as practicable the sum of $5,640,000, which shall be provided
out ofthe proceeds ofthe sale ofthe Bonds and other City funds.
Section 4.Authorization and Description of Bonds. The City shall now issue and
sell $4,905,000 of water and sewer revenue bonds (the "Bonds") for the purpose of providing
funds required to pay the cost ofthe Project.
The Bonds shall be designated as the "City ofMoses Lake,Washington Water and Sewer
Revenue Bonds,2011" (the "Bonds");shall be dated as of their date of initial delivery; shall be
fullyregistered as to both principal and interest; shall be in the denomination of $5,000 each, or
anyintegral multiplethereof,providedthatno Bond shallrepresentmore than onematurity;shall
be numbered separately in such manner and with any additional designation as the Registrar
deems necessary for purposes of identification; and shall bear interest from their date payable
semiannually on the first days ofeach March and September, commencing on March 1, 2012, at
the following per annuminterestrates andshall mature on September1 ofthe followingyears in
the following principal amounts:
Maturity Years
(September 1)Principal Amounts
$455,000
Interest Rates
2012 0.65%
2013 460,000 0.85
2014 460,000 2.00
2015 470,000 2.00
2016 480,000 2.25
2017 490,000 2.25
2018 500,000 2.75
2019 515,000 2.75
2020 530,000 3.25
2021 545,000 3.25
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The Bonds shall be obligations only of the Bond Fund and shall be payable and secured
as provided herein.The Bonds shall notbe general obligations oftheCity.
Section 5.Registration.Exchange and Payments.
(a)Registrar/Bond Register.The City hereby specifies and adopts the system of
registration approved by the Washington State Finance Committee from time to time through the
appointmentofstate fiscal agencies.The City shallcauseabondregisterto be maintained by the
Registrar.So long as any Bonds remain outstanding,the Registrar shall make all necessary
provisions to permitthe exchange or registration or transfer of Bonds at its principal corporate
trust office.The Registrar may be removed at any time at the option ofthe City Representative
upon prior notice to the Registrar and a successor Registrar appointed by the City
Representative. No resignation or removal of the Registrar shall be effective until a successor
shallhave been appointed and until the successorRegistrarshallhave accepted the duties ofthe
Registrar hereunder.The Registrar is authorized,on behalf of the City, to authenticate and
deliver Bonds transferredorexchanged in accordancewith the provisions ofsuch Bonds andthis
ordinance and to carry out all of the Registrar's powers and duties under this ordinance.The
Registrar shall be responsible for its representations contained in the Certificate of
Authentication ofthe Bonds.
(b)Registered Ownership.The City and the Registrar, each in its discretion, may
deem andtreat the Registered Owner ofeachBond as the absoluteowner thereof for all purposes
(except as provided in Section 18 ofthis ordinance), and neither the City nor the Registrar shall
be affected by any notice to the contrary.Payment of any such Bond shall be made only as
described in Section 5(h) hereof, but such Bond may be transferred as herein provided.All such
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payments made as described in Section 5(h) shall be valid and shall satisfy and discharge the
liability ofthe City upon suchBond to the extent ofthe amount oramounts so paid.
(c)DTC Acceptance/Letters ofRepresentations.The Bonds initially shall be held in
fully immobilized form by DTC acting as depository.To induce DTC to accept the Bonds as
eligible for depositat DTC, the City has executedand delivered to DTC a Blanket Issuer Letter
ofRepresentations.Neitherthe City northe Registrar will have anyresponsibilityor obligation
to DTC participants or the persons for whom they act as nominees (or the participants of any
successor depository or those for who any such successor acts as nominee) with respect to the
Bonds in respect of the accuracy of any records maintained by DTC (or any successor
depository) or any DTC participant,the payment by DTC (or any successor depository) or any
DTC participant of any amount in respect of the principal of or interest on Bonds, any notice
which is permitted or required to be given to RegisteredOwners under this ordinance (except
such notices as shall be required to be given by the City to the Registrar or to DTC (or any
successor depository)), or any consent given or other action taken by DTC (or any successor
depository)as the RegisteredOwner.For so long as any Bonds are held in fully-immobilized
form hereunder,DTC or its successor depository shallbe deemed to be the Registered Owner for
all purposes hereunder (except for Section 18hereof),andall references herein to the Registered
Owners shall mean DTC (or any successor depository) or its nominee and shall not mean the
owners of any beneficial interest in such Bonds, except as provided in Section 18 of this
ordinance.
If any Bond shall be duly presented for payment and funds have not beenduly provided
by the City on such applicable date,then interest shall continueto accrue thereafteronthe unpaid
principal thereofatthe rate stated on suchBonduntilit is paid.
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(d)Use ofDepository.
(1)The Bonds shall be registered initially in the name of "Cede & Co.", as
nominee of DTC,with one Bond maturing on each of the maturity dates for the Bonds in a
denomination corresponding to the total principal therein designated to mature on such date.
Registered ownership of such immobilized Bonds, orany portions thereof,may not thereafter be
transferred except (A) to any successor of DTC or its nominee, provided that any such successor
shall be qualifiedunderany applicable laws to providethe service proposed to be provided by it;
(B)to any substitutedepository appointed by the City Representative pursuantto subsection (2)
below or such substitute depository's successor; or (C)to any person as provided in
subsection (4)below.
(2) Upon the resignation ofDTC or its successor(or any substitute depository
orits successor) from its functions asdepositoryor a determinationby the City Representativeto
discontinue the system of book entry transfers through DTC or its successor (or any substitute
depository or its successor),the City Representative may hereafter appoint a substitute
depository.Any such substitute depository shall be qualified under any applicable laws to
providethe servicesproposedto be provided by it.
(3) In the case of any transfer pursuantto clause (A) or (B)of subsection (1)
above, the Registrar shall, upon receipt ofall outstanding Bonds,together with a written request
of the City Representative,issue a single new Bond for each maturity then outstanding,
registered in the name of such successoror such substitute depository, or their nominees, as the
casemay be, allas specified in suchwrittenrequest ofthe City Representative.
(4) In the event that (A) DTC or its successor (or substitute depository or its
successor)resigns from its functions asdepository, and no substitute depository can be obtained,
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or (B) the City Representative determines that it is in the best interest ofthe beneficial owners of
the Bonds that such owners be able to obtain such bonds in the form of Bond certificates,the
ownership ofsuch Bonds may then be transferred to any person or entity as herein provided,and
shall no longer be held in fully-immobilized form. The City Representative shall deliver a
written request to the Registrar,together with a supply of definitive Bonds,to issue Bonds as
herein provided in any authorized denomination. Upon receipt by the Registrar of all then
outstanding Bonds together with a written request of the City Representative to the Registrar,
new Bonds shall be issued in the appropriate denominations and registered in the names of such
persons as are requested in suchwritten request.
(e)Registration ofTransfer of Ownership or Exchange;Change in Denominations.
The transfer ofany Bond mayberegistered and Bonds may be exchanged,but no transfer ofany
such Bond shall be valid unless it is surrendered to the Registrar with the assignment form
appearing on such Bond duly executed by the Registered Owner or such Registered Owner's
duly authorized agent in a manner satisfactory to the Registrar. Upon such surrender, the
Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to
the Registered Owner or transferee therefor,a new Bond (or Bonds at the option of the new
Registered Owner)of the same date, maturity and interest rate and for the same aggregate
principal amount in any authorized denomination, naming as Registered Owner the person or
persons listed as the assignee on the assignment form appearing on the surrendered Bond, in
exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the
Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of
the same date, maturity and interest rate, in any authorized denomination. The Registrar shall
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not be obligated to register the transfer or to exchange any Bond during the 15 days preceding
any interest payment or principal payment date any suchBond is to be redeemed.
(f)Registrars Ownership of Bonds.The Registrar may become the Registered
Owner of any Bond with the same rights it would have if it were not the Registrar, and to the
extent permitted by law, may act as depository for and permit any of its officers or directors to
act as member of, or in any other capacity with respect to, any committee formed to protect the
right ofthe RegisteredOwners ofBonds.
(g)Registration Covenant.The City covenants that, until all Bonds have been
surrendered and canceled, it will maintain a system for recording the ownership of each Bond
that complieswiththe provisionsof Section149 ofthe Code.
(h)Place and Medium ofPayment.Both principal of and interest on the Bonds shall
be payable in lawful money of the United States of America.Interest on the Bonds shall be
calculated on the basis ofa year of360 days and twelve 30-day months.For so long as all Bonds
are in fully immobilized form, payments of principal and interest thereon shall be made as
provided in accordance with the operational arrangements of DTC referred to in the Letter of
Representations.In the eventthat the Bonds are no longerin fully immobilized form, intereston
the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for
such Registered Owners appearing on the Bond Register on the fifteenth day of the month
preceding the interest payment date, or upon the written request of a Registered Owner ofmore
than $1,000,000 of Bonds (received by the Registrar at least 15 days prior to the applicable
payment date), such payment shall be made by the Registrar by wire transfer to the account
within the United States designated by the Registered Owner.Principal of the Bonds shall be
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payable upon presentation and surrender of such Bonds by the Registered Owners at the
principal office ofthe Registrar.
Section 6.Redemption and Purchase.
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(a)No Redemption.The Bonds are not subjectto redemption prior to their scheduled
maturity.
(b)Purchase ofBondsfor Retirement.The City reserves the right to use at any time
any surplus Revenue of the System available after providing for the payments required by
paragraphs First through Fifth of Section 7 of this ordinance, or other available funds, to
purchase any ofthe Bonds at any price deemed reasonable by the City to purchase for retirement
any ofthe Bonds offered to the City at any price deemed reasonable to the City.
(c)Effect ofPurchase.To the extentthat the Cityshallhave purchased any Balloon
Maturity Bondssincethe last scheduled mandatory redemption of suchBalloon Maturity Bonds,/^%
the City may reduce the principal amount of the Balloon Maturity Bonds to be redeemed in like
principal amount. Such reduction may be applied in the year specified by the City.
Section 7. Revenue Fund and Priority of Application of Revenue. The City
maintains the Water/Sewer Fund as a separate enterprise fund of the City.All Revenue ofthe
System is deposited in the Water/Sewer Fund #410 within the Water/Sewer Fund (the "Revenue
Fund").The Water/Sewer Fund shall be considered a combined fund for purposes ofmeasuring
compliance with the Rate Covenant and the Parity Requirement.Notwithstanding the foregoing,
the City Finance Director may maintain such separate funds and accounts in such names and
under such additional designations as shall be required to comply with the uniform system of
accounting established by the State Auditor from time to time. The Revenue Fund shall be held
separate and apart from all other funds and accounts of the City and the Revenue of the System •-n.
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deposited in such Fund shall be used only for the following purposes and in the following order
ofpriority:
First, to pay the Costs ofMaintenance and Operation ofthe System;
Second, to pay the interest on any Parity Bonds, including reimbursements to the issuer
of a Qualified Letter of Credit or Qualified Insurance if the Qualified Letter of Credit or
Qualified Insurance secures the payment of interest on Parity Bonds and the ordinance
authorizing such Parity Bonds provides for such reimbursement;
Third, to pay the principal ofany Parity Bonds, including reimbursements to the issuer of
a Qualified Letter of Credit or Qualified Insurance ifthe Qualified Letter ofCredit or Qualified
Insurance secures the payment ofprincipal of Parity Bonds and the ordinance authorizing such
Parity Bonds provides for such reimbursement;
Fourth,to make all paymentsrequired to bemade intothe Reserve Fund-2011 and to any
reserve fund created in the future for the payment of debt service on Future Parity Bonds,
including reimbursements to the issuer of a Qualified Letter of Credit or Qualified Insurance if
the Qualified Letter of Credit or Qualified Insurance has been issued to fund the Reserve
Requirement-2011 and/or the reserve requirement(s)for any Future Parity Bonds and the
ordinance authorizing such Parity Bonds provides for such reimbursement;
Fifth,to make all payments required to be made into any revenue bond redemption fund
or revenue warrant redemption fund and debt service fund or reserve fund created to pay and
secure the payment of the principal of and interest on any other revenue bonds or revenue
warrants of the City havinga lien upon the Revenue ofthe Systemjunior and inferiorto the lien
thereonforthe paymentoftheprincipalofandintereston Parity Bonds;and
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Sixth, to retire by redemption or purchase any outstanding revenue bonds or revenue
warrants of the City, to make necessary additions,betterments,improvements and repairs to or
extensions and replacements ofthe System,or for any other lawful City purposes.
The City may transfer any money from any funds or accounts of the System legally
available therefor, except bond redemption funds, refunding escrow funds or defeasance funds,
to meet the required payments to be made into the Bond Fund.
Section 8.Bond Fund and Reserve Fund.The Finance Director has established the
2011 Bond Fund #450 within the Water/Sewer Fund for the payment of the debt service on the
Bonds, and shall establish separate funds in the future for the payment of debt service on Future
Parity Bonds (collectively,the "Bond Fund"). The Finance Director also has established the
2011 Bond Reserve Fund #451 within the Water/Sewer Fund for the purpose of securing the
repayment oftheBonds(the "ReserveFund-2011").
(a)Payments intoBondFund.The Bond Fundshall be maintained for the purpose of
payingthe principal ofand intereston all Parity Bonds.
As long as any Parity Bond remains outstanding, the City hereby irrevocably obligates
and binds itself to set aside and pay from the Revenue Fund into the Bond Fund those amounts
necessary, togetherwith such other funds as are on hand and available in the BondFund, to pay
the interest or principal and interest next coming due on outstanding Parity Bonds. Such
payments from the Revenue Fund to the Bond Fund shall be made in a fixed amount without
regardto anyfixedproportion following the closinganddelivery ofthe Bondson or beforeeach
date on which an installment of interest or principal and interest falls due on Parity Bonds equal
to the installmentof interest or principal and interest.
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The City Finance Director is hereby authorized and directed and the City hereby
obligatesand binds itself to set asideand pay into the Bond Fund allULID Assessments asthe
same are collected.
(b)Payments into Reserve Fund-2011.The Reserve Fund-2011 shall be maintained
forthe purpose of securing the payment ofthe principal ofand interest on the Bonds. The City
covenants and agreesthat from andafterthe closing and delivery ofthe Bonds,it will atalltimes
maintain an amount in the Reserve Fund-2011 at least equal to the Reserve Requirement-2011
except for withdrawals therefrom authorized hereinafter,at all times for so long as any Bonds
remain outstanding.The Reserve Requirement-2011 may be maintained by deposits of cash, a
Qualified Letter of Credit or Qualified Insurance,or a combination of the foregoing.In
computingthe amount on handinthe ReserveFund-2011,QualifiedInsuranceand/oraQualified
Letter ofCredit shall be valued atthe face amount thereof, and all other obligations purchasedas
an investment of moneys therein shall be valued at cost.As used herein, the term "cash" shall
include U.S.currency, cash equivalents and evidences thereof,including demand deposits,
certified or cashier's check; and the deposit to the Reserve Fund-2011 may be satisfied initially
bythe transfer ofqualified investments to such account.
If the balances on hand in the Reserve Fund-2011 are sufficient to satisfy the Reserve
Requirement-2011, interest earnings shall be applied as provided in the following sentences.
Whenever there is a sufficient amount in the Bond Fund,including the Reserve Fund-2011 to
pay the principal ofand interest on all outstanding Bonds, the money in the Reserve Fund-2011
may be used to pay such principalandinterest.As long asthe money left remaining on deposit
in the Reserve Fund-2011 is equal to the Reserve Requirement-2011,money in the Reserve
Fund-2011 may be transferred to the Bond Fund and used to pay the principal ofand intereston
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the Bonds as the same becomes due and payable.The City also may transfer out of the Reserve
Fund-2011 any money required in order to prevent any Bonds from becoming "arbitrage bonds"
under the Code.
If a deficiency in the Bond Fund for the payment of debt service on the Bonds shall
occur, such deficiency shall be made up from the Reserve Fund-2011 by the withdrawal ofcash
therefrom for that purpose and by the sale or redemption ofobligations held in the Reserve Fund-
2011, in such amounts as will provide cash in the Reserve Fund sufficient to make up any such
deficiency with respect to the Bonds, and if a deficiency still exists immediately prior to an
interest payment date and after the withdrawal of cash, the City shall then draw from any
Qualified Letter ofCredit or Qualified Insurance for the Bonds in sufficient amount to make up
the deficiency.Such draw shall be made at such times and under such conditions as the
agreement for such Qualified Letter ofCredit or such Qualified Insurance shall provide.
In making the payments and credits to the Reserve Fund-2011 required by this
Section 8(b), to the extent that the City has obtained Qualified Insurance or a Qualified Letter of
Credit for specific amounts required pursuant to this section to be paid out ofthe Reserve Fund-
2011 such amounts so covered by Qualified Insurance or a Qualified Letter of Credit shall be
credited against the amounts required to be maintained in the Reserve Fund-2011 by this
Section 8(b)to the extent that such payments and credits to be made are insured by an insurance
company,orguaranteedbya letterof creditfroma financial institution.
Any deficiency created in the Reserve Fund by reason of any such withdrawal shall then
be made up within one year of the date of withdrawal from Net Revenue or from ULID
Assessments (or out of any other moneys on hand legally available for such purpose) after
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making necessary provision for the payments required to be made into the Bond Fund within
such year.
Any Qualified Letterof Credit or Qualified Insurance shallnot be cancelable on lessthan
30 days' notice to the City. In the event of any cancellation,the Reserve Fund-2011 shall be
funded as if the Bonds that remain outstanding had been issued on the date of such notice of
cancellation.
In the event that the City elects to meet the Reserve Requirement-2011 through the use of
a Qualified Letterof Credit,Qualified Insurance or other equivalent credit enhancement device,
the City may contract with the entity providing such Qualified Letter of Credit,Qualified
Insurance or other equivalent credit enhancement device that the City's reimbursement
obligation,if any,to such entity shall be made from payments of principal andintereston Parity
Bondsfromthe Citysubjectonlytothe prior lienthereonforthe paymentsrequiredhereunderto
be made to registered owners ofParity Bonds.
(c)Reserve Funds for Future Parity Bonds.In the event that the City issues Future
Parity Bonds,the ordinance authorizing their issuance shall provide for the establishment of a
reserve fund for such series ("a future reserve fund") and shall provide for the funding of the
future reserve fund in an amount equal to the lesser of (i)Maximum Annual Debt Service with
respectto the proposedissue of FutureParity Bondsor (ii) 125%ofaverage annualdebt service,
but in no event in an amount equalto 10%ofthe proceeds ofthe proposed issue ofFuture Parity
Bonds (the "Future Parity Bond reserve requirement"). Each future reserve fund shall be
maintained for the purpose of securing the payment of the principal of and interest on the
respective series of Future Parity Bonds. A Future Parity Bond reserve requirement may be
maintained by deposits of cash, a Qualified Letter of Credit or Qualified Insurance, or a
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combination of the foregoing.In computing the amount on hand in the future reserve fund,
Qualified Insurance and/or a Qualified Letter of Credit shall be valued at the face amount
thereof,and all other obligations purchased as an investment ofmoneys therein shall be valued at
cost. As used herein, the term "cash" shall include U.S. currency, cash equivalents and
evidencesthereof, including demanddeposits, certifiedor cashier's check; and the depositto the
future reserve fund may be satisfied initially by the transfer of qualified investments to such
account.
Ifthe balances on hand in the future reserve fund are sufficient to satisfy its Future Parity
Bond reserve requirement, interest earnings shall be applied as provided in the following
sentences.Whenever there is a sufficient amount in the Bond Fund,including the future reserve
fund to pay the principal of and interest on the respective series of outstanding Future Parity
Bonds, the money in the future reserve fund may be used to pay such principal and interest. As
long as the money left remaining on deposit in the future reserve fund is equal to the respective
Future Parity Bond reserve requirement, money in the future reserve fund may be transferred to
the Bond Fund and used to pay the principal ofand interest on the series of Future Parity Bonds
as the same becomes due and payable. The City also may transfer out of a future reserve fund
any money required in order to prevent any Future Parity Bonds from becoming "arbitrage
bonds"under the Code.
(d)Priority ofLienofPayments intoBondFundand Reserve Fund.The amounts so
pledged to be paid into the Bond Fund and the Reserve Fund-2011 and any other reserve fund
created for the benefit of outstanding Parity Bonds from the Revenue Fund and from ULID
Assessments are hereby declaredto be a prior lien and charge upon the Revenue of the System
and ULID Assessmentssuperiorto all other charges ofanykind or nature whatsoeverexceptthe
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Costs of Maintenance and Operation ofthe System,and except that the amounts so pledged are
of equal liento the charges upon such Revenue and ULID Assessments forthe payment ofthe
principal ofand interest on any Future Parity Bonds.
(e)Application and Investment of Moneys in the Bond Fund and Reserve Fund.
Money in the Bond Fundand Reserve Fund-2011 may be kept in cashor invested as permitted
by law.Investments inthe Bond Fund shall mature prior to the dateon which suchmoney shall
be needed for required interest or principal payments (for investments in the Bond Fund) or
having a guaranteed redemption price priorto maturity.Investments in the Reserve Fund-2011
shall mature not laterthan the last maturity ofany then outstanding Bonds.
(f)Sufficiency ofRevenues.The City Councilhereby finds that in fixing the amounts
to be paid intothe Bond Fund andthe Reserve Fund-2011 out ofthe Revenue of the System, it
has exercised due regard for the Costs of Maintenanceand Operation and has not obligated the
City to set aside and pay into the Bond Fund andthe Reserve Fund-2011 and any reserve fund
created for outstandingParityBonds a greateramount of such Revenue than in its judgment will
be available over and above the Costs ofMaintenance andOperation.
Section 9.Specific Covenants.
(a)Rate Covenant.The City will establish, maintain and collect such rates and
charges for service ofits System for so long as any Bonds are outstanding as will maintain the
Rate Covenant.
(b)SystemMaintenance.The City will at alltimes maintain and keep the System in
good repair,working order and condition, and also will at alltimes operate such utility andthe
business in connection therewith in an efficient manner and at a reasonable cost.
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(c)Disposal ofProperties.The City will not mortgage, sell, lease, or in any manner
encumber or dispose of all or substantially all the property of the System (voluntarily or
involuntarily),unless provision is made for payment into the Bond Fund of a sum sufficient to
pay the principal of, premium,if any, and interest on all outstanding bonds payable therefrom,
nor will it mortgage, sell, lease, or in any manner encumber or dispose of (including but not
limited to a disposition by transfer to another public or private organization)voluntarily or
involuntarily any part of the System that is used, useful and material to the operation of the
System unless
(1) the City certifies,based upon reasonable expectations, that the remaining
assets ofthe System shall be sufficientto continue regular operations ofthe City on a financially
sound basis for a period ofat least five years and
(2) provision is made for replacement thereof or for payment into the Bond
Fund ofthe total amount ofrevenue received which shall not be less than an amount which shall
bear the same ratio to the amount ofoutstanding Parity Bonds as the greater of
(A) the Net Revenue available for Debt Service for such outstanding
Parity Bonds for the 12 months preceding such sale, lease,encumbrance or disposal from the
portion of the System sold, leased,encumbered or disposed of bears to the Net Revenue
available for Debt Service for such Parity Bonds from the entire System for the same period;
(B) the Revenue ofthe System for the 12 months preceding such sale,
lease,encumbrance or disposal from the portion of the System sold, leased, encumbered or
disposed ofbears to the Revenue ofthe System for the same period;
(C) the proportion of assets (on a depreciated basis) allocable to the
assets being sold, leased, encumberedor disposed ofbears to the total assets ofthe System;or
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(D) the proportion of customers of the City allocable to the assets
being sold, leased,encumbered or disposed of bears to the total number of customers of the
System,
provided,however,that the Citymaydisposeof anyportion ofthe facilities of the System up to
an aggregate of five percent of the book value of the total assets of the System without the
requirementfor any depositto theBondFundas hereinabove provided.
Any such moneys so paid into the Bond Fund shall be used to retire such outstanding
Parity Bonds at the earliest possible date. Any money received by the City as condemnation
awards, insurance proceeds or the proceeds ofsale,if not deposited to the Bond Fund, shall be
used for the replacement offacilities ofthe System.
(d)BooksandRecords.The City will, while any ofthe Bonds remains outstanding,
keep proper and separate accounts and records in which complete and separate entries shall be
made of all transactions relating to the System, and it will furnish the original purchaser or
purchasers of the Bonds or any subsequent owner or owners thereof, at the written request of
such owner or owners, complete operating and income statements of the System in reasonable
detail covering any fiscal year, showing the financial condition of the water and sewer
departments and compliance with the terms and conditions ofthis ordinance, not more than 150
days after the close of such fiscal year, and it will grant any owner or owners of at least 25%of
the outstanding Bonds the right at all reasonable times to inspect the entire System and all
records, accounts and data ofthe City relating thereto. Upon request ofany owner ofany ofsaid
Bonds, it will also furnish to such owner a copy of the most recently completed audit of the
City's accountsby the StateAuditor ofWashington or independent certified public accountant.
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(e)No Free Service.The City will not furnish water or sanitary sewerage disposal
service to any customer whatsoever free of charge (except to aid the poor or infirm,to provide
for resource conservation or to provide for the proper handling ofhazardous materials)and will
promptly takelegal actionto enforcecollection ofall delinquentaccounts.
(f)PropertyInsurance.The City will at all times carry fire and extended coverage
and such other forms of insurance on the buildings, equipment, facilities and properties of the
System,if such insurance is obtainable at reasonable rates and upon reasonable conditions,
against such risks, in such amounts, and with such deductibles as the Council shall deem
necessary for the protection ofthe System and the owners ofall outstanding Parity Bonds.
(g)Liability Insurance.The City will at all times keep and arrange to keep in full
force and effect policies of public liability and property damage insurance which will protect the
City against anyone claiming damages of any kind or nature arising out of the operation of the
System,if such insurance is obtainable at reasonable rates and upon reasonable conditions, in
such amounts and with such deductibles as the Council shall deem necessary for the protection
ofthe City and the owners ofthe outstanding Parity Bonds.
(h)Delinquencies ofAccounts.The Citywill, on or before March 1 of each calendar
year, determine all accounts that are delinquent and will take all necessary action to enforce
payment ofany such delinquencies.
(i)ULID Assessments.All ULID Assessments shall be paid into the Bond Fundand
shall be used to pay and securethe payment of the principal of and interest on the Bondsand
Future ParityBonds. Nothing in this ordinanceor this sectionshall be construedto prohibitthe
Cityfrom issuing water,sewerorwaterand sewerrevenue bondsjuniorin lien to the Bonds and
pledging as security for their payment assessments levied in any ULID which may have been
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specifically created to pay part ofthe cost of improvements to the System for which those junior
lien bonds were specifically issued.
Section 10. Tax Covenants. The City covenants that it will not take or permit to be
taken on its behalf any action that would adversely affect the exemption from federal income
taxation of the interest on the Bonds and will take or require to be taken such acts as may
reasonably be within its ability and as may from time to time be required under applicable law to
continue the exemption from federal income taxation ofthe interest on the Bonds.
(a)Arbitrage Covenant.Without limiting the generality of the foregoing, the City
covenants that it will not take any action or fail to take any action with respect to the proceeds of
sale of the Bonds or any other funds of the City which may be deemed to be proceeds of the
Bonds pursuantto Section 148 ofthe Code and the regulations promulgated thereunder which,if
such use had been reasonably expected on the date of delivery of the Bonds to the initial
purchasers thereof, would have caused the Bonds as "arbitrage bonds"within the meaning of
such term as used in Section 148 ofthe Code.
The City represents that it has not been notified ofany listing or proposed listing by the
Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not
be relied upon.The City will comply with the requirements of Section 148 ofthe Code and the
applicable regulations thereunder throughout the term ofthe Bonds.
(b)Private Person Use Limitation for Bonds.The City covenants that for as long as
the Bonds areoutstanding, it will not permit:
(1) More than 10%of the Net Proceeds of the Bonds to be used for any
Private Person Use; and
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(2) More than 10%of the principal or interest payments on the Bonds in a
Bond Year to be directly or indirectly: (A) secured by any interest in property used or to be used
for any Private Person Use or secured by payments in respect ofproperty used or to be used for
any Private Person Use, or (B) derived from payments (whether or not made to the City) in
respect ofproperty,or borrowed money, used or to be used for any Private Person Use.
The City further covenants that, if:
(3) More than five percent ofthe Net Proceeds ofthe Bonds are to be used for
any Private Person Use; and
(4) More than five percent ofthe principal or interest payments on the Bonds
in a Bond Year are (underthe terms of this ordinance or any underlying arrangement) directly or
indirectly:
(A) secured by any interest in property used or to be used for any
Private Person Use or secured by payments in respect of property used or to be used for any
Private Person Use,or
(B) derived from payments (whether or not made to the City) in
respect ofproperty,or borrowed money, used or to be used for any Private Person Use,
then, (i) any Private Person Use of the projects described in subsection (3)hereof or Private
Person Use payments described in subsection (4)hereof that is in excess of the five percent
limitations described in such subsections (3) or (4) will be for a Private Person Use that is related
to the state or local governmental use of the Project, and (ii) any Private Person Use will not
exceed the amount of Net Proceeds of the Bonds used for the state or local governmental use
portion of the project to which the Private Person Use ofsuch portion ofthe Project relates. The
City further covenants that it will comply with any limitations on the use ofthe projects by other
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than state and local governmental users that are necessary,in the opinion ofits bond counsel,to
preserve the tax exemption of the interest on the Bonds.The covenants of this section are
specified solely to assure the continued exemption from regular income taxation of the interest
on the Bonds.
(c)Designation under Section 265(b)ofthe Code.The City hereby designates the
Bonds as "qualified tax exempt obligations" for investment by financial institutions under
Section265(b)ofthe Code. The City does not anticipate that it will issue more than $10,000,000
in qualified tax-exemptobligationsduring2011 (excluding obligations permitted by the Codeto
be excluded for purposes ofthe City's qualification as a qualified small issuer).
(d)Modification ofTax Covenants.The covenants ofthis section are specified solely
to assurethe continued exemption from regular income taxation ofthe interest on the Bonds. To
that end, the provisions ofthis section may be modified or eliminated without any requirement
for formal amendment thereof upon receipt of an opinion of the City's bond counsel that such
modification or elimination will not adversely affect the tax exemption ofinterest on any Bonds.
Section 11.Issuance ofFuture Parity Bonds.
(a)Conditions upon the Issuance ofFuture Parity Bonds.As long as any of the
Bonds remain outstanding,the City hereby further covenants and agrees that it will not issue any
Future Parity Bonds except that the City hereby reserves the right to issue additional water and
sewer revenue bonds,which shall constitute a charge and lien upon the Revenue of the System
equalto the lien thereon ofthe Bonds. Exceptasprovided in subsection(b) below,the Cityshall
not issue any series ofFuture Parity Bonds or incur any additional indebtedness with a parity lien
or charge on Net Revenue (i.e.,on a parity of lien with Parity Bonds at the time outstanding)
unless:
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(1)the City shall not have been in default of its Rate Covenant for the
immediately preceding fiscal year, and
(2) The ordinance authorizing the issuance ofsuch Future Parity Bonds shall
include the covenants provided in Section 8(c)hereof and provide that the Future Parity Bond
reserve requirement shall be funded no later thanthe date ofdelivery ofthe Future Parity Bonds.
(3) there shall have been filed a certificate (prepared as described in
subsection(c) or (d) below) demonstrating fulfillment of the Parity Requirement, commencing
with the first full fiscal year following the date on which any portion of interest on the series of
Future Parity Bonds then being issued no longer will be paid from the proceeds of such series of
Future Parity Bonds.
(b)No Certificate Required.The certificate described in the foregoing
subsection (a)(2) shall not be required as a condition to the issuance ofFuture Parity Bonds:
(1)if the Future Parity Bonds being issued are for the purpose of refunding
outstanding Parity Bonds; or
(2)ifthe Future Parity Bonds are being issued to pay costs of construction of
facilities of the System for which Future Parity Bonds have been issued previously and the
principal amount of such Future Parity Bonds being issued for completion purposes does not
exceed an amount equal to an aggregate of 15%ofthe principal amount of Future Parity Bonds
theretofore issued for such facilities and reasonably allocable to the facilities to be completed as
shown in a written certificate of the City Representative, and there is delivered a Consultant's
certificatestatingthat the natureandpurpose of suchfacilitieshasnotmaterially changed.
(c)Certificate ofthe City Without A Consultant.Ifrequiredpursuant to the foregoing
subsection (a)(2), a certificate may be delivered by the City (executed by the City
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Representative)without a Consultant if Net Revenue for the Base Period (confirmed by an
independent auditor)conclusively demonstrate that the Parity Requirement will be fulfilled
commencing withthe firstfullfiscalyear following the date on whichany portionof interest on
the series of Future Parity Bonds then being issued will not be paid from the proceeds of such
series ofFuture Parity Bonds.
(d)Certificate of a Consultant.Unless compliance with the requirements of
subsection (a)(2)havebeenotherwise satisfied (as provided in (b)or (c)above),compliance with
the Parity Requirement shall be demonstrated conclusively bya certificate ofa Consultant.
In making the computations of Net Revenue for the purpose of certifying compliance
withtheParity Requirement,the Consultant shall useas a basistheNetRevenue (which maybe
based upon unaudited financial statements oftheCity ifthe audit has notyet been completed)for
the Base Period. Such Net Revenue shall be determined by adding the following:
(1) The historicalnet revenue ofthe City for the Base Period being issuedas
determined by a Consultant.
(2) The net revenue derived from those customers of the City that have
become customers during such 12-month period or thereafter and prior to the date of such
certificate,adjusted to reflect a full year's net revenue from each such customer to the extent
such net revenue was not included in (1) above.
(3) The estimated annual net revenue to be derived from any person, firm,
association, private or municipalcorporation under any executed contract for service, which net
revenue was not included in any ofthe sources ofnet revenue described in this subsection (d).
(4) The estimated annual net revenue to be derived from the operation ofany
additions or improvements to or extensions ofthe City under construction but not completed at
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the time of such certificate and not being paid for out of the proceeds of sale of such Future
Parity Bonds being issued, and which net revenue is not otherwise included in any ofthe sources
ofnet revenue described in this subsection (d).
(5) The estimated annual net revenue to be derived from the operation ofany
additions and improvements to or extensions of the City being paid for out of the proceeds of
sale ofsuch Bonds being issued.
In the event the City will not derive any revenue as a result of the construction of the
additions,improvements or extensions being made or to be made to the System within the
provisions of subparagraphs(4) and (5) immediately above, the estimated normal Costs of
Maintenance and Operation (excluding any transfer of money to other funds of the City and
license fees,taxes and payments in lieu of taxes payable to the City)of such additions,
improvements and extensions shallbedeductedfromestimated annual net revenue.
The words "historical net revenue"or "net revenue"as used in this subsection (d) shall
mean the Revenue or any part or parts thereof less the normal expenses of maintenance and
operation ofthe Systemoranypartorpartsthereof,but before depreciation.
Such "historical net revenue" or "net revenue" shall be adjusted to reflect the rates and
charges effective on the date of such certificate if there has been any change in such rates and
charges during or after such 12-consecutive-monthperiod.
(e)Subordinate Lien Obligations.Nothing herein contained shall prevent the City
from issuing revenue bonds or other obligations which are a charge upon the Revenue of the
System junior or inferior to the payments required by this ordinance to be made out of such
Revenue topayand secure thepayment of any outstanding ParityBonds.
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(f)Refunding Obligations.Nothing herein contained shall prevent the City from
issuing revenue bonds to refundmaturingParityBondsforthe payment ofwhichmoneysarenot
otherwise available.
Section 12.Form ofBonds. The Bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
No.
STATE OF WASHINGTON
CITY OF MOSES LAKE
WATER AND SEWER REVENUE BOND,2011
INTEREST RATE:MATURITY DATE:CUSIPNO.:
REGISTERED OWNER:CEDE &Co.
PRINCIPAL AMOUNT:
The City of Moses Lake,Washington,a municipal corporation organized and existing
under and by virtue of the laws of the State of Washington (herein called the "City") hereby
acknowledges itself to owe and for value receivedpromises to pay, but only from the sources
and as hereinafter provided, to the RegisteredOwneridentified above, or registered assigns,on
the Maturity Date identified above, the Principal Amount indicated above and to pay interest
thereon from August 23, 2011, or the most recent date to which interest has been paid or duly
provided for,at the Interest Rate set forth above,payable on March1, 2012, and semiannually
thereafter on the first days of each September and March until such principal sum is paid or
payment has been duly provided for.
Both principal of and interest on this bond are payable in lawful money of the United
States ofAmerica. Interest and principal shall be paid as provided in the Blanket Issuer Letter of
Representations (the "Letter of Representations") from the City to The Depository Trust
Company ("DTC"). The fiscal agency of the State of Washington has been appointed by the
City as the authenticating agent, paying agent and registrar for the bonds of this issue (the
"Registrar"). Capitalized terms used in this bond that are not specifically defined have the
meanings given such terms in Ordinance No. 2626 of the City (the "Bond Ordinance").
Reference is made to the Bond Ordinance and any and all modifications and amendments thereto
for a description of the nature and extent ofthe security for the bonds ofthis issue, the funds or
i j revenues pledged,and the terms and conditions upon which such bonds are issued.
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This bond is one of an authorized issue ofbonds of the City of like date and tenor except ^^^
as to number,amount, rate ofinterest and date of maturity in the aggregate principal amount of ^
$4,905,000. This issue of bonds is authorized by the Bond Ordinance for the purposes of
providingmoney to pay part ofthe cost ofconstruction and acquisition ofcertain improvements
to the System,all in conformity with the laws of the State of Washington and ordinances of the
City.
This bond and the bonds of this issue are payable solely from the special funds of the
Citydefined as the "Bond Fund" in the BondOrdinance. The Cityhas irrevocably obligatedand
bound itself to pay into the Bond Fund out of the Revenue of the System or from such other
moneysas may be providedthereforcertainamounts necessaryto pay and securethe payment of
the principal and interest on such bonds. The bonds of this issue are not general obligations of
the City.
The City has designated the bonds of this issue as qualified tax-exempt obligations for
purposes ofSection 265(b)ofthe Internal Revenue Code of 1986.
The bonds of this issue are issued under and in accordance with the provisions of the
Constitution and applicable statutes of the State of Washington and duly adopted ordinances of
the City.The City hereby covenants and agrees with the owner of this bond that it will keep and
performall the covenants ofthis bond and ofthe Bond Ordinanceto be by it kept and performed,
and reference is hereby made to the Bond Ordinance for a complete statement ofsuch covenants.
The City does hereby pledge and bind itselfto set aside from the Revenue Fund out ofthe C)
revenue of the System and to pay into the Bond Fund and the Reserve Fund-2011 the various
amounts required by the Bond Ordinance to be paid into and maintained in such Fund and
account, all within the times provided by the Bond Ordinance. To the extent more particularly
providedby the Bond Ordinance,the amountsso pledged to be paid from the Revenue Fundout
of the revenue of the System into the Bond Fund and the account therein shall be a lien and
charge thereon equal in rank to the lien and charge upon said revenue ofthe 2004 Bonds and the
amounts required to pay and secure the payment of any revenue bonds of the City hereafter
issuedon a parity with 2004 Bonds and the bonds ofthis issue and superior to all other liensand
charges ofany kindor natureexceptthe Costs ofMaintenanceand Operation ofthe System.
The pledge of Revenue of the Systemand other obligations of the City under the Bond
Ordinance may be discharged at or priorto the maturityor redemption ofthe bonds ofthis issue
uponthe makingof provision forthe payment thereofonthetermsandconditionsset forth inthe
Bond Ordinance.
The bonds ofthis issuearenotsubjectto redemptionpriorto their stated maturities.
This bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall
have been manually signed by the Registrar.
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It is hereby certified that all acts, conditions, and things required by the Constitution and
^^J statutes of the State of Washington to exist,to have happened,been done,and performed
precedentto andinthe issuance ofthisbondhave happened,been done,and performed.
IN WITNESS WHEREOF,the City ofMoses Lake,Washington has caused this bond to
be signed with the facsimile or manual signature ofthe Mayor, to be attested by the facsimile or
manual signature of the City's Finance Director, and the corporate seal of the City to be
impressed, imprinted or otherwisereproducedhereon,allas ofthis 23rdday ofAugust, 2011.
CITY OF MOSES LAKE,WASHINGTON
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By /s/facsimile or manual
Mayor
(SEAL)
ATTEST:
/s/facsimile or manual
Finance Director
The Registrar's certificate authentication on the Bonds shall be in substantially the
following form:
CERTIFICATE OF AUTHENTICATION
Date ofAuthentication:August 23,2011
This bond is one ofthe bonds described in the within-mentioned Bond Ordinance and is
one ofthe Water and Sewer Revenue Bonds, 2011 ofthe City ofMoses Lake,Washington,dated
August 23,2011.
WASHINGTON STATE FISCAL
AGENCY,Registrar
By
Authorized Signer
Section 13.Execution of Bonds.The Bonds shall be executedon behalf of the City
withthe manual or facsimile signature ofthe Mayor,shall be attested by the manual or facsimile
signature of the Finance Director,and the seal of the City shall be impressed,imprinted or
otherwise reproduced thereon.
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Only such Bonds as shall bear thereon a Certificate of Authentication in the form
hereinbefore recited,manually executed by the Registrar,shall be valid or obligatory for any
purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be
conclusive evidence that the Bonds so authenticated have been duly executed,authenticated,and
delivered hereunder and are entitled to the benefits ofthis ordinance.
In case either of the officers who shall have executed the Bonds shall cease to be an
officer or officers of the City before the Bonds so signed shall have been authenticated or
delivered by the Registrar,or issued by the City, such Bonds shall be valid nevertheless and may
be issued by the City with the same effect as though the persons who had executed such Bonds
had not ceased to be such officers.
Section 14. Defeasance. In the event that money and/or Governmental Obligations
maturing at such time or times and bearing interest to be earned thereon in amounts sufficient to
redeem and retire any bonds payable out of the Bond Fund in accordance with their terms are
irrevocably set aside in a special account to effect such redemption and retirement, then no
further payments need be made into the Bond Fund for the payment of the principal of and
interest on such Bonds and the owner ofsuch Bonds shall cease to be entitled to any lien,benefit
or security of this ordinance except the right to receive the funds so set aside and pledged, and
such Bonds shall be deemed not to be outstanding hereunder.
The Registrar shall provide notice of defeasanceof Bonds to Registered Owners and to
eachpartyentitled to receive notice in accordance withSection 18ofthisordinance.
Section 15. Lost or Destroyed Bonds. In case any Bonds shall be lost, stolen or
destroyed,the Registrar may authenticate and deliver a newBondor Bonds of like amount,date
and tenor to the owner thereof upon the owner's paying the expenses and charges of the
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Registrar andthe Cityin connection therewith and upon his filingwiththe Registrar andtheCity
evidence satisfactoryto boththat suchBond or Bondswere actually lost, stolen or destroyedand
of his ownership thereof, and upon furnishing the City and the Registrar with indemnity
satisfactory to both.
Section 16. Sale of Bonds. The City hereby accepts the written offer of the
Underwriter to purchase the Bondsat the price set forth in its purchase offer presented to this
Council and under the terms, conditions and covenants ofthe Bonds as set forth herein. The City
Representative is authorized and directed to execute the purchase offer presented by the
Underwriter.
The City Administrator and the Finance Director are hereby authorized to review and
approve onbehalfof the Citythe preliminary and final Official Statements relative to the Bonds
with such additions and changes as may be deemed necessary and advisable to them. The
Preliminary Official Statementfor the Bonds, dated August 3, 2011, is hereby deemed final for
purposes of Securities and ExchangeCommission Rule 15c2-12.
The Finance Director and other City officials, agents and representatives are hereby
authorized and directed to do everything necessary for the prompt issuance,execution and
delivery of the Bonds to the Underwriter, and for the proper use and application of the proceeds
ofsale ofthe Bonds.
Section 17.Disposition of Bond Proceeds.The Finance Director has heretofore
established the Operations Complex Construction Fund #472 within the Water/Sewer Fund of
the City (the "Project Fund"). The net proceeds of sale of the Bonds shall be deposited in the
Project Fund and shall be expended solely to pay the cost of issuing and selling the Bonds and,
together with other available moneys of the City, shall be used to undertake the Project. Money
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in the Project Fund shall be invested by the Finance Director,pending disbursement,in any legal
investment for City funds.
Section 18.Undertaking to Provide Ongoing Disclosure.
(a)Contract/Undertaking.This section constitutes the City's written undertaking for
the benefit ofthe owners ofthe Bonds as required by Section (b)(5)ofthe Rule.
(b)Financial Statements/Operating Data.The City agrees to provide or cause to be
provided to the Municipal Securities Rulemaking Board ("MSRB"), the following annual
financial information and operating data for the prior fiscal year (commencing in 2012 for the
fiscal year ended December 31,2011):
1.Annual financial statements, which statements may or may not be audited,
showing ending fund balances for the System prepared in accordance with the Budget
Accounting and Reporting System prescribed by the Washington State Auditor pursuant to
RCW 43.09.200;
2. The principal amount ofParity Bonds;
3.Debt service coverage for Parity Bonds;
4. Rates for the System; and
5.Number ofcustomers ofthe System.
Items 2-5 shall be required onlyto theextentthat suchinformation is not included in the annual
financial statements.
The information and data described above shall be provided on or before nine months
after the endof the City's fiscal year.The City's current fiscal year ends December 31.The
City may adjust such fiscal year by providing written notice ofthe change of fiscal year to the
MSRB.In lieu of providing such annual financial information and operating data,the City may
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cross-refer to other documents available to the public on the MSRB's internet website or filed
with the SEC.
If not providedas partof the annual financial information discussed above,the Cityshall
provide the City's audited annual financial statement prepared in accordance with the Budget
Accounting and Reporting System prescribed by the Washington State Auditor pursuant to
RCW 43.09.200 (or any successor statute) when and ifavailable to the MSRB.
(c)Material Events.TheCity agrees to provide or causeto be provided,in a timely
manner, to the MSRB notice ofthe occurrence of any ofthe following events with respect to the
Bonds not in excess often business days after the occurrence ofthe event:
• Principal and interest payment delinquencies;
• Non-payment relateddefaults,ifmaterial;
•Unscheduled draws on debt service reserves reflecting financial
difficulties;
Unscheduled draws on credit enhancements reflecting financial
difficulties;
• Substitution ofcredit or liquidity providers, or their failure to perform;
• Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability,Notices of Proposed Issue (IRS Form
5701-TEB)or other material notices or determinations with respect to the tax status ofthe
Bonds, or other material events affecting the tax status ofthe Bonds;
• Modifications to the rights ofBondholders,ifmaterial;
•Bond calls,ifmaterial,and tender offers;
•Defeasances;
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• Release, substitution, or sale ofproperty securing repayment ofthe Bonds,
ifmaterial;
•Rating changes;
• Bankruptcy,insolvency,receivershiporsimilarevent ofthe City;
• The consummation ofa merger,consolidation,or acquisition involving the
City or the sale of all or substantially all of the assets of the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake such an
action or the termination ofa definitive agreement relating to any such actions, other than
pursuant to its terms,ifmaterial; and
• Appointment of a successor or additionaltrustee or the change ofname of
a trustee,ifmaterial.
Solely for purposesofinformation,andnot intendingto modifythis undertaking,the City
advises that no property secures payment of the Bonds. The City shall promptly determine
whether the events described above are material.
(d)Notification Upon FailuretoProvideFinancialData.The City agrees to provide
or cause to be provided, in a timely manner to the MSRB notice of its failure to provide the
annual financial information described in Subsection (b) above on or prior to the date set forth in
Subsection (b) above.
(e)Emma;Format for Filings with the MSRB.Until otherwise designated by the
MSRB or the SEC, any information or notices submitted to the MSRB in compliance with the
Rule are to be submitted through the MSRB's Electronic Municipal Market Access system
("EMMA"),currently located at www.emma.msrb.org.All notices,financial information and
operating data required bythis undertaking tobe provided tothe MSRB mustbeinan electronic
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COML Council Packet 4-9-24, Page 85 of 222
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format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this
undertakingmust be accompaniedby identifying information asprescribedby the MSRB.
(f)Termination/Modification.The City's obligations to provide annual financial
information and notices of material events shall terminate upon the legal defeasance, prior
redemption or payment in full ofall ofthe Bonds.Any provision ofthis section shall benull and
void ifthe City (1) obtainsanopinion ofnationallyrecognizedbond counselto the effect thatthe
portion of the Rule that requires that provision is invalid,has been repealed retroactively or
otherwise does not apply to the Bonds and (2) notifies the MSRB of such opinion and the
cancellation ofthis section.
The City may amendthis section with an opinion ofnationallyrecognized bond counsel
in accordance with the Rule. In the event of any amendment of this section, the City shall
describe such amendment in the next annual report, and shall include, a narrativeexplanation of
the reason forthe amendment and its impact on the type (or in the case ofa change ofaccounting
principles,on the presentation)of financial information or operatingdatabeing presentedby the
City. In addition,if the amendment relates to the accounting principles to be followed in
preparing financial statements,(i)notice ofsuch change shall be given in the same manner as for
a material event under Subsection (c), and (ii) the annual report for the year in which the change
is made shall present a comparison (in narrative form and also,if feasible, in quantitative form)
between the financial statements as prepared on the basis ofthe new accounting principles and
those prepared onthe basis ofthe formeraccountingprinciples.
(g)Bond Owner's Remedies Under This Section.The right of any bondowner or
beneficial owner ofBondsto enforce the provisions of this section shall be limited to a right to
obtain specific enforcement ofthe City's obligations under this section,and any failure by the
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City to comply with the provisions of this undertaking shall not be an event of default with
respect to the Bonds. For purposes ofthis section,"beneficial owner"means any person who has
the power,directlyor indirectly,to vote or consentwith respectto, or to disposeof ownershipof,
any Bonds, including persons holding Bonds through nominees or depositories.
(h)No Default.The City is not and has not been in default in the performance of its
obligations ofany prior undertaking for ongoing disclosure with respect to its obligations.
Section 19. Effective Date. The City Council declares that an emergency exists and
this ordinance shall take effect immediatelyas provided by law upon one reading if 2/3 of the
entire City Council present vote in favor of passage.
Adopted by the City Council and signed by its Mayor on August 9, 2011.
CITY OF MOSES LAKE,WASHINGTON
Finance Director
APPROVED AS TO FORM:
CyntJna M. Weed. Bond Counsel
K&L Gates LLP
Svv ^IvujL
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Mayor
PA20287 CMV\A20287 9AJ 08/09/11COML Council Packet 4-9-24, Page 87 of 222
CERTIFICATE OF FINANCE DIRECTOR
u
I DO HEREBY CERTIFY that I am the duly chosen, qualified and acting Finance
Director of the City of Moses Lake,Washington (the "City"), and keeper of the records of the
City Council (the "Council");and
I HEREBY CERTIFY:
1. That the attached ordinance is a true and correct copy of Ordinance No. 2626 of
the City (the "Ordinance"), as finally passed at a regular meeting of the Council held on the 9th
day ofAugust, 2011, and duly recorded in my office.
2. That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that a
quorum was present throughout the meeting and a legally sufficient number of members of the
i \Council voted in the proper manner for the passage ofthe Ordinance; that all other requirements
and proceedings incident to the proper passage ofthe Ordinance have been duly fulfilled,carried
out and otherwise observed,and that I am authorized to execute this certificate.
IN WITNESS WHEREOF,I have hereunto set my hand this 9th ofAugust,2011.
Finance Director
u
P:\20287_CMW\20287_9AJ 08/09/11COML Council Packet 4-9-24, Page 88 of 222
Appendix D
AUDITREPORT
COML Council Packet 4-9-24, Page 89 of 222
Council Staff Report
To:Agenda Item Number:
From
Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
Kevin Fuhr, City Manager 15255
Doug Coutts, Director
Parks, Recreation, and
Cultural Services
4/9/2024 Consent Agenda
White Bikes Concessionaire Agreement
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
0.00$0.00$0.00$
Approve the Concessionaire agreement with White Bikes, LLC to operate a stand-up paddleboard/kayak rental
concession in City of Moses Lake waterfront parks.
White Bikes Contract 2024-Draft.docx 46.02KB
White Bikes has previously provided this service in City parks. The agreement includes all regular provisions for
concessionaires including all insurance and indemnification language and staff recommends approval.
None
Options and Results
Staff will execute the agreement with White Bikes LLC and they will be allowed to operate a stand-up paddle
board/Kayak concession in the City's waterfront parks.
Staff will bring back options for recommended changes.
Staff will not execute the agreement and White Bikes, LLC will not be permitted.
COML Council Packet 4-9-24, Page 90 of 222
AGREEMENT FOR CITY PARK CONCESSION SERVICES
This Concession Services Agreement ("Agreement") is dated effective this ____ day of
April, 2024. The parties ("Parties") to this Agreement are the City of Moses Lake, a Washington
municipal corporation ("City"), and White Bikes, LLC (“Concessionaire”), a Washington
limited liability corporation.
A.The City is the owner of public parks known as Neppel Landing, Blue Heron Park,
Cascade Park, Lower Peninsula Park, and Montlake Park (“Premises”) in which User
desires to conduct business as a concessionaire renting paddle boards, kayaks, canoes, and
bicycles, and selling limited pre-packaged food and beverage items. The City desires to
permit the User to use the park property identified below for the purpose of engaging in
the concession activity referenced above, pursuant to the terms and conditions as set forth
in the Agreement below.
B.The User desires to conduct its concession activities on City Park property subject to the
terms of the Agreement set forth below.
NOW, THEREFORE, the Parties agree as follows:
1.Services.
Concessionaire shall provide services as set forth in Exhibit "A" attached hereto and
incorporated by this reference, at the Premises located, in a manner consistent with the accepted
practices for other similar services, performed to the City's satisfaction, within the time period
prescribed by the City and pursuant to the direction of the City Manager or his designee.
1.1 Customer Service. Concessionaire and all of its employees, agents, or
representatives shall provide the highest quality of customer service and shall treat all customers
with courtesy and respect. Concessionaire shall honor all reasonable request for refunds.
1.2 Employee Appearance. All of Concessionaire's employees, agents,
representatives or licensees shall have a neat, clean and sanitary personal appearance and those
who come in direct contact with the public shall wear clothing or identification, which
distinguishes them as employees of Concessionaire.
1.3 Employee Training. Concessionaire shall provide a training program for
its employees, agents, or representatives for the development of the skills and techniques
necessary to perform its obligations under this Agreement including but not limited to promoting
customer service, product and service presentation, cleanliness, and positive attitude.
1.4 Staffing. The Concession shall be properly staffed in order to prevent
undue delay to the public. Concessionaire shall plan its staffing in advance and anticipate to the
best of its ability any events, such as holidays or special events, which may require additional
staffing. In the event the City determines in its sole discretion that Concessionaire is not
adequately staffing the Kitchen, it may notify Concessionaire of that fact and Concessionaire
shall endeavor to immediately increase its staffing to meet the City's recommendation.
Concessionaire understands that the services authorized under this Agreement may
involve concessionaire's personnel having unsupervised access to children under sixteen years of
COML Council Packet 4-9-24, Page 91 of 222
age, developmentally disabled persons, or vulnerable adults as those terms are defined in RCW
43.43.830. Concessionaire warrants and certifies that none of its personnel who will or may be
given such access shall have:
a.Been convicted of any offense against children or other persons, as defined in
RCW 43.43.830; or
b.Been convicted of any crimes related to financial exploitation, where the victim
was a vulnerable adult, as defined in RCW 43.43.830; or
c.Been adjudicated in any civil action to have committed child abuse, as defined in
RCW 43.43.830, or
d.Had a disciplinary board final decision rendered against them or has been
convicted of criminal charges associated with a disciplinary board final decision, as defined in
RCW 43.43.830.
Concessionaire shall be responsible for obtaining any necessary background checks of
personnel or volunteers in accordance with applicable provisions of state law, including but not
limited to those persons with unsupervised access to children or vulnerable persons (RCW
43.43.830 et seq.)
1.5 Hours and Areas of Operation. The Concessionaire shall remain open
during the hours of operation set forth in Exhibit "B", unless the City notifies the Concessionaire
of other hours of operation, and such hours of operation shall be posted in a conspicuous place
by the Concessionaire.
Concessionaire shall operate only at the locations identified herein, and shall not sell,
advertise, display or promote their products beyond these areas.
1.6 Pricing. All pricing of any food, beverage or other product as set forth in
Exhibit "C" attached hereto and incorporated by this reference, must be competitive and must be
approved in writing by the City. Concessionaire may not change any pricing without the City's
prior written consent, which consent may not be unreasonably withheld. Concessionaire shall
display a price list of goods sold in full view of the public at all times during the operation.
1.7 Products. All food, beverage or other products offered for sale by
Concessionaire to the public shall be approved in writing by the City prior to distribution or sale
of any such products. Concessionaire shall comply with any reasonable requests made by the
City to either add or eliminate certain types of food, beverage or other products. Concessionaire
shall comply with the City's existing, exclusive soft drink agreement. Concessionaire shall be
contractually obligated to sell exclusive product during all hours of operation.
Concessionaire shall not sell any items in glass containers, and any items with shells (i.e.-
peanuts, sunflower seeds etc.) nor shall Concessionaire sell, display or distribute tobacco
products or alcoholic beverages of any kind. Concessionaire shall not sell, advertise, or distribute
any non-food items.
3.Terms.
COML Council Packet 4-9-24, Page 92 of 222
The term of this Agreement shall commence upon the effective date of this Agreement and
shall continue until the completion of the Services, but in any event no later than December 31,
2024, ("Term"). This Agreement may be extended for additional periods of time upon the mutual
written agreement of the City and the Concessionaire.
4.Termination.
Prior to the expiration of the Term, the City or the Concessionaire may terminate this
Agreement immediately, with or without cause and with a thirty (30) day notice.
5. Compensation.
5.1 Total Compensation. The Concessionaire agrees to pay the City an
amount equal to 15% of the Concessionaire's gross monthly revenue plus the applicable
Leasehold Excise Tax referenced in section 5.6, excluding state sales tax ("Percentage Payment").
The term "Gross Monthly Revenue" shall mean the total amount charged by
Concessionaire, its employees, agents, or licensees, for all goods and merchandise sold or services
performed, whether for cash or other consideration or on credit, and regardless of collections.
5.2 Payment Due Date. Concessionaire shall deliver the Percentage Payment
to the City on or before the 10th day of each month for Gross Monthly Revenue received during
the preceding month ("Due Date").
5.3 Access to Records. Concessionaire shall provide a written statement to
the City on the Due Date showing the total Gross Monthly Revenue for the preceding month
("Statement"). Concessionaire will provide the City or the City's agents or representative's
reasonable access to the books and records of Concessionaire for the purposes of auditing and
inspecting the same to verify the Statement. The records shall include documents from which
the original transaction entry was made, including sales slips, cash register tapes, and/or purchase
invoices. Concessionaire hereby authorizes the Tax Division of the State of Washington to release
to the City, a statement of receipts from sales and services made at this concession as filed during
the period of this contract.
5.4 Cash Register. All sales, other than sales from vending machines, shall be
recorded by a cash register, which display to the customer the amount of the sale and
automatically issue receipts certifying the transaction amount. The cash register shall be
equipped with devices which lock in sales totals, transaction records, produce duplicate audit
tape, contain counters which cannot be reset and which record the transaction numbers and sales
details on such tape. Any errors shall be noted by Concessionaire on the audit tape with an
explanation. Cash register readings shall be recorded by Concessionaire at the beginning and the
end of each business day.
5.5 Late Fee. Concessionaire acknowledges that late payment to the City of
the Percentage Payment will cause the City to incur costs not contemplated by this Agreement,
the exact amount of which will be difficult to ascertain. Accordingly, if the Percentage Payment
is not received by the City on the Due Date, Concessionaire agrees to pay a late fee equal to
Twenty-Five and No/100 Dollars ($25.00).
COML Council Packet 4-9-24, Page 93 of 222
5.6 Concessionaire Responsible for Taxes. The Concessionaire shall be solely
responsible for the payment and reporting of any taxes imposed by any lawful jurisdiction as a
result of the performance and payment of this Agreement; including, but not limited to, sales tax.
Leasehold Excise Tax, currently at a rate of 12.84 % of the percentage paid to the City will be
deducted from the 15% of Gross revenue paid to the City for this operation and not added as an
additional payment from this concessionaire as this operation does not use a City owned building
for its operation.
6.Compliance with Laws.
Concessionaire shall comply with and perform the Services in accordance with all
applicable Federal, State, and City laws including, without limitation, all City codes, ordinances,
resolutions, standards and policies, as now existing or hereafter adopted or including but not
limited to the following:
(i) Federal, State and local health, safety and licensing laws relating to the sale of
concession goods; and
(ii)City code provisions requiring any person or entity doing business in the City to
obtain a business license.
(iii) Concessionaire shall hold a valid permit from the Grant County Health District if
food and/or beverages requiring such a permit are to be sold.
(iv)Concessionaire shall display the official Grant County Health District permit in
full view of the public at all times during the operation.
7.Warranty.
The Concessionaire warrants that it has the requisite training, skill and experience
necessary to provide the Services and is appropriately accredited and licensed by all applicable
agencies and governmental entities, including but not limited to being registered to do business
in the City of Moses Lake by obtaining a City of Moses Lake Business License.
8. Independent Contractor/Conflict of Interest.
It is the intention and understanding of the Parties that the Concessionaire shall be an
independent contractor and that the City shall be neither liable nor obligated to pay Concessionaire
sick leave, vacation pay or any other benefit of employment, nor to pay any social security or
other tax which may arise as an incident of employment. The Concessionaire shall pay all income
and other taxes as due. Industrial or any other insurance, which is purchased for the benefit of the
City, regardless of whether such may provide a secondary or incidental benefit to the
Concessionaire, shall not be deemed to convert this Agreement to an employment contract. It is
recognized that concessionaire may or will be performing professional services during the Term
for other parties; provided, however, that such performance of other services shall not conflict
with or interfere with Concessionaire's ability to perform the Services. Concessionaire agrees to
resolve any such conflicts of interest in favor of the City.
9.Indemnification.
COML Council Packet 4-9-24, Page 94 of 222
9.1 Contractor Indemnification. The Concessionaire agrees to indemnify,
defend, and hold the City, its elected officials, officers, employees, agents, and volunteers
harmless from any and all claims, demands, losses, actions and liabilities (including costs and all
attorney fees) to or by any and all persons or entities, including, without limitation, their
respective agents, licensees, or representatives, arising from, resulting from, or connected with
this Agreement to the extent caused by the negligent acts, errors or omissions of the
Concessionaire, its partners, shareholders, agents, employees, or by the Concessionaire's breach
of this Agreement. Concessionaire waives any immunity that may be granted to it under the
Washington State Industrial Insurance Act, Title 51 RCW. Concessionaire's indemnification shall
not be limited in any way by any limitation on the amount of damages, compensation or benefits
payable to or by any third party under workers' compensation acts, disability benefit acts or any
other benefits acts or programs.
9.2 Survival. The provisions of this Section shall survive the expiration or
termination of this Agreement with respect to any event occurring prior to such expiration or
termination.
10. Equal Opportunity Employer.
In all Concessionaire's activities, including the performance of the Services and all hiring
and employment made possible by or resulting from this Agreement, there shall be no
discrimination by Concessionaire or by Concessionaire's employees, agents, subcontractors or
representatives against any person because of sex, age (except minimum age and retirement
provisions), race, color, creed, national origin, marital status or the presence of any disability,
including sensory, mental or physical handicaps, unless based upon a bona fide occupational
qualification in relationship to hiring and employment,. This requirement shall apply, but not be
limited to the following: employment, advertising, layoff or termination, rates of pay or other
forms of compensation, and selection for training, including apprenticeship. Concessionaire shall
not violate any of the terms of Chapter 49.60RCW, Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act, Section 504 of the Rehabilitation Act of 21973 or any other
applicable federal, state or local law or regulation regarding non-discrimination. Any material
violation of this provision shall be grounds for termination of this Agreement by the City and, in
the Case of the Concessionaire's breach, may result in ineligibility for further City agreements.
11.Confidentiality.
All information regarding the City obtained by Concessionaire in performance of this
Agreement shall be considered confidential. Breach of confidentiality by Concessionaire will be
grounds for immediate termination.
12. Insurance.
The Concessionaire agrees to carry as a minimum, the following insurance, in such forms
and with such carriers who have a rating, which is satisfactory to the City:
12.1 Workers' compensation and employer's liability insurance in amounts sufficient
pursuant to the laws of the State of Washington;
COML Council Packet 4-9-24, Page 95 of 222
12.2 Commercial general liability insurance with combined single limits of liability not less than $2,000,000, a $2,000,000 aggregate for bodily injury, including personal injury or
death, products liability and property damage, and $2,000,000 products-completed operations
aggregate limit. 12.3 Automobile liability insurance with combined single limits of liability not less
than $1,000,000. For bodily injury, including personal injury or death and property damage.
The City shall be named as additional insured on all such insurance policies, with the
exception of workers' compensation coverage, and all policies shall be in excess of, and
noncontributory with, any insurance maintained by the City. Concessionaire shall provide
certificates of insurance, concurrent with the execution of this Agreement, evidencing such
coverage on an occurrence (and not claims made) basis, and, at City's request, furnish the City
with copies of all insurance policies and with evidence of payment of premiums or fees of such
policies. All insurance policies shall contain a clause of endorsement providing that they may
not be terminated or materially amended during the Term of this Agreement except after thirty
(30) days prior written notice to the City. Concessionaire's failure to maintain such insurance
policies shall be grounds for the City's immediate termination of this Agreement.
The provisions of this Section shall survive the expiration or termination of this
Agreement with respect to any event occurring prior to such expiration or termination.
13.Non-Exclusive Right. This Agreement does not grant Concessionaire an
exclusive right to distribute its products. The City reserves the right to grant to other persons or
entities any of the rights contained herein or otherwise.
14. Signs. Concessionaire shall not place any sign, notice or advertising matter in or
about the City's real property, without the City's prior consent, which consent may be withheld
for any reason. If required by city code, Concessionaire shall obtain all necessary permits in
connection with any such signs.
15. General Provisions.
15.1 Entire Agreement. This Agreement contains all of the agreements of the
Parties with respect to any matter covered or mentioned in this Agreement and no prior
agreements shall be effective for any purpose.
15.2 Modification. No provision of this Agreement, including this provision,
may be amended or modified except by written agreement signed by the Parties.
15.3 Full force and Effect. Any provision of this Agreement, which is declared
invalid or illegal shall in no way, affect or invalidate any other provision hereof and such other
provisions shall remain in full force and effect.
15.4 Neither the Concessionaire nor the City shall have the right to transfer,
sublease, or in whole or in part, any or all of its obligation and rights hereunder without the prior
written consent of the other Party.
15.5 Successors in Interest. Subject to the foregoing Subsection, the rights and
obligations of the Parties shall inure to the benefit of and be binding upon their respective
successors in interest, heirs and assigns.
COML Council Packet 4-9-24, Page 96 of 222
15.6 Attorney Fees. In the event either of the Parties defaults on the
performance of any terms of this Agreement or either Party places the enforcement of this
Agreement in the hands of an attorney, or files a lawsuit, each Party shall pay all its own attorneys'
fees, costs and expenses. The venue for any dispute related to this Agreement shall be Grant
County, Washington.
15.7 No Waiver. Failure or delay of the City to declare any breach or default
immediately upon occurrence shall not waive such breach or default. Failure of the City to declare
one breach or default does not act as a waiver of the City's right to declare another breach or
default.
15.8 Governing Law. This Agreement shall be made in and shall be governed
by and interpreted in accordance with the laws of the State of Washington.
15.9 Authority. Each individual executing this Agreement on behalf of the City
and concessionaire represents and warrants that such individuals are duly authorized to execute
and deliver this Agreement on behalf of the Concessionaire or the City.
15.10 Notices. Any notices required to be given by the Parties shall be delivered
at the addresses set forth below. Any notices may be delivered personally to the addressee of the
notice or may be deposited in the United States mail, postage repaid, to the address set forth
below. Any notice so posted in the United States mail shall be deemed received three (3) days
after the date of mailing.
15.11 Captions. The respective captions of the Sections of this Agreement are
inserted for convenience of reference only and shall not be deemed to modify or otherwise affect
any of the provisions of this Agreement.
15.12 Performance. Time is of the essence of this Agreement and each and all
of its provisions in which performance is a factor. Adherence to completion dates set forth in the
description of the Services is essential to the Concessionaire's performance of this Agreement.
15.13 Remedies Cumulative. Any remedies provided for under the terms of this
Agreement are not intended to be exclusive but shall be cumulative with all other remedies
available to the City at law, in equity or by statute.
15.14 Counterparts. This Agreement may be executed in any number of
counterparts, which counterparts shall collectively constitute the entire Agreement.
15.15 Equal Opportunity to Draft. The parties have participated and had an equal
opportunity to participate in the drafting of this Agreement, and the Exhibits, if any, attached.
No ambiguity shall be construed against any party upon a claim that that party drafted the
ambiguous language.
DATED the day and year set forth above.
COML Council Packet 4-9-24, Page 97 of 222
White Bikes, LLC
By: ___________________________ Troy White
CITY OF MOSES LAKE
By: _____________________________
Doug Coutts, Parks, Recreation & Cultural Services Director
610 W. Yakima Ave.
Moses Lake, WA 98837
COML Council Packet 4-9-24, Page 98 of 222
Exhibit A
In support of Agreement for City Park Concession Services
City of Moses Lake
Concessionaire: Troy White
White Bikes, LLC
527 N Clark Rd.
Moses Lake, WA 98837.
Locations:
Neppel Landing, Blue Heron Park, Cascade Park, Lower Peninsula Park, and Montlake Park
Services to be Provided
Rental of Paddleboards, Kayaks, Canoes, Bicycles, sale of summer related merchandise (hats,
shirts, stickers, Frisbees, sunblock, etc.) and sale of prepackaged food and beverages.
COML Council Packet 4-9-24, Page 99 of 222
Exhibit B
In support of Agreement for City Park Concession Services Hours and Areas of Operation
Hours of operation: Between 8 am and 8 pm
Areas of operation: Blue Heron Park, Neppel Park, Cascade Park, Lower Peninsula Park,
Montlake Park
COML Council Packet 4-9-24, Page 100 of 222
Exhibit C
In support of Agreement for City Park Concession Services
Pricing
Rentals by hour: $25 Single SUP or Kayak or canoe or Bicycle.
$50 Multi-person SUP or Kayak.
$10 PFD’s
Merchandise: $2-$25
Prepackaged food and beverages: $2-$10
COML Council Packet 4-9-24, Page 101 of 222
Council Staff Report
To:Agenda Item Number:
From
Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Kevin Fuhr, City Manager 15279
Doug Coutts, Director
Parks, Recreation, and
Cultural Services
4/9/2024 Consent Agenda
Waiver of Special Event and PRCS Vendor Fees for Springfest
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
0.00$0.00$0.00$
Waive the Special Event fee and the Parks Recreation and Cultural Services vendor fees for the Spring Fest
event May 23-26, 2024 at McCosh Park.
Springfest Fee Waiver Request.pdf 343.92KB
Historically, the City has waived the Special Event Fee and the PRCS associated vendor fees for Springfest
each year. This is done as Spring Fest brings significant out of town visitors to the City for overnight stays,
restaurant visits and tourism dollars. Staff recommends approval of this measure. To be clear, this measure
would not waive any fees associated with Business Licensing for vendors or Fire Department permits and
fees.
Fiscal and Policy Implications
No change from prior years.
Options and Results
Approve, Authorize, or Adopt:
Staff will waive the fees.
Provide Amended Direction:
Staff will bring back options for recommended changes.
No Action Taken:
Staff will charge the fees as approved in the City's approved Fee Schedule.COML Council Packet 4-9-24, Page 102 of 222
1
Doug Coutts
From:Moses Lake Spring Festival <springfestivalinmoseslake@gmail.com>
Sent:Friday, March 29, 2024 2:01 PM
To:Doug Coutts
Subject:Special Event and Vendor Fee Request
Caution! This message was sent from outside your organization. Allow sender | Block sender
Afternoon Doug,
Our non profit organization would like to request to have the special event fee and all vendor fees waived
for the 2024 Spring Fest on May 23-26,2024 being held at McCosh Park.
Best Regards,
Sean Sallis
Spring Festival President
COML Council Packet 4-9-24, Page 103 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
Kevin Fuhr, City Manager 15253
Brian Baltzell, Director Public Works
4/9/2024 Consent Agenda
Aspect Consulting LLC Well 20 Source Approval Support Amendment
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
28,000.00$28,000.00$0.00$
Staff recommends that City Council motion to approve the 2024 Well 20 Source Approval Support Amendment.
CO3_CC1_20240306_180155_2024 Well 20 Support.pdf 378.32KB
Aspect Consulting has been supporting the city in its endeavor to receive source approval for Well 20 from the
state Department of Health.
The City recently received a formal source approval letter from DOH with the understanding that certain types of
testing and monitoring will occur at Well 20, nearby Well 29, and at the monitoring well (MW-W20). The tasks
for this ongoing work include procurement and deployment of long term-monitoring equipment, pump test
support, water quality sampling, report writing support, and public agency coordination and meeting
participation. This amendment will provide funds for the consultant to assist the City with all of these tasks.
The contract amendment would allow funds to be spent for the long-term monitoring of Well 20 up to a not-to-
exceed limit of $28,000.
Options and Results
Staff will execute the contract amendment with the consultant.
Staff will bring back options for recommended changes.
COML Council Packet 4-9-24, Page 104 of 222
No Action Taken:
Staff will await further instructions.
COML Council Packet 4-9-24, Page 105 of 222
Contract Change
OFFICE LOCATIONS
WASHINGTON: Bainbridge Island | Bellingham | Olympia | Seattle | Wenatchee | Yakima
OREGON: Bend | Portland
www.aspectconsulting.com
Client: City of Moses Lake Attn: Richard Law P.O. Box 1579 Moses Lake, WA 98837
Date: March 6, 2024
Change No.: CC01 to CO03
Project No. : 180155
Project Name: 2024 Well 20 Source Approval Support
Description of Work Cost
Geosyntec Consultants, Inc. dba Aspect Consulting (Aspect) has been providing ongoing technical assistance to the City of Moses Lake (City) regarding the permitting of the City’s Well No. 20. Well 20 represents a significant improvement in supply capacity in an area of the City’s water system that requires additional source capacity. We understand that bringing
Well 20 online is a high priority for the City.
Following recent testing, reporting, and agency coordination regarding Well 20, the Department of Health (DOH) has indicated a willingness to provide
initial Source Approval for Well 20 and that further testing is required to authorize the well for use up to its full capacity. In recent correspondence with the City, DOH has described their requirements for this additional testing. Aspect will complete the Scope of Work described herein to assist the City
with meeting these additional agency requirements to authorize Well 20 as a permanent source for drinking water supply up to its full capacity.
Task 1: Procure and Deploy Long Term Monitoring Equipment DOH has indicated that it will initially require the City to monitor water
quality and water levels in the source aquifer for Well 20 at a higher standard in comparison to typical water supply wells. This includes an increased sampling frequency of Volatile Organic Compounds (VOCs) at Well 20 for the first two years of operation. We anticipate that DOH and/or the
Environmental Protection Agency (EPA) will also require VOC analyses at downgradient monitoring well MW-W20 for the first two years. DOH and EPA have also indicated a desire for ongoing groundwater level monitoring at Well 20, Well 29, and MW-W20.
To assist the City in meeting the DOH requirements, Aspect will procure and permanently deploy pressure transducers in the City’s three wells and one barometric pressure logger to allow for continuous water level monitoring at these wells that is independent of the SCADA system. Aspect will also deploy
a dedicated 12-volt submersible pump in MW-W20 to allow the City to
collect groundwater quality samples.
Key Assumptions:(1) pressure transducers and the submersible pump will belong to the City after installation; (2) equipment will be used for the Task 2
pumping test and maintained by Aspect for the duration of Task 2; and (3) the
Time and Materials, Not-To-Exceed: $28,000
Task 1: $6,000
COML Council Packet 4-9-24, Page 106 of 222
Contract Change No. 1 Project No. 180155
Page 2
City will purchase pump controller and transducer communication hardware separately.
Task 2: Well 20 Pumping Test Support and Report Preparation
DOH is requiring that Well 20 be pumped at a rate equivalent to the permanent source capacity being requested by the City. Based on City records for the installed pump, this is anticipated to be up to 1,400 gallons per minute (gpm). Testing will occur with discharge into the City’s drinking water system
at a rate held as constant as the system will allow for up to 72 hours. Under Task 1, Aspect will complete the following:
•Be onsite for the startup and shutdown of the pumping test to programwater level monitoring equipment and document test performance.
•Monitor water levels at Well 20, Well 29, and MW-W20 using manualmethods and the instrumentation installed under Task 1.
•Procure and install a test apparatus for Microscopic Particulate
Analysis (MPA) at Well 20.
•At the completion of the pumping test, Aspect will collect waterquality samples from Well 20 and MW-W20 to be analyzed forVolatile Organic Compounds (VOCs).
Once the pumping test is complete, Aspect will analyze the data collected
using conventional methods and prepare a brief report that presents and discusses the following:
•The capacity/yield of the pump, well, and aquifer
•Groundwater elevation hydrographs of the locations monitored duringthe pumping tests
•A summary of the water quality results
•An interpretation of the testing results relative to groundwater flowconditions (e.g., relative to the Superfund Site)
•A comparison of testing results to the initial Well Testing results
•Recommendations for operations, maintenance, and monitoring
Deliverables: (1) Draft report to be finalized after one round of minor agency comments; (2) laboratory water quality reports; and (3) electronic data files of test results, provided upon request.
Key Assumptions: (1) The City will be responsible for operation of Well 20; (2) laboratory fees for water quality analyses will be paid directly by the City;(3) Aspect will be on site to direct the startup and shutdown of the test, whichwill be conducted over an approximately continuous period; and (4) one roundof minimally complex agency comments will be addressed in the final report.
Task 3: On-Call Agency Coordination and Project Management As directed by the City, Aspect will prepare for and participate in virtual meetings with EPA, DOH, and/or the City to discuss Well 20.
Project management will also be completed under this task, including
invoicing, client communication, and internal coordination.
Task 2: $17,000
Task 3: $5,000
COML Council Packet 4-9-24, Page 107 of 222
Contract Change No. 1 Project No. 180155
Page 3
Deliverables: (1) Meeting materials, as budget allows; and (2) monthly invoices.
Key Assumptions: Budget is provided for Aspect to participate in up to three 2-hour virtual meetings with agencies.
(budgets may be reallocated
across project tasks if necessary)
This change amends the contract between Aspect Consulting and the City of Moses Lake signed February 28, 2024. Except as amended above, all terms and conditions of contract apply to this contract change.
ASPECT CONSULTING
By:
Printed Name: Andrew Austreng, LHGPrincipal Hydrogeologist
CLIENT
By:
Printed Name/Date:
\\ASP-Sea-01\Projects\Moses Lake (City)\Contracts\Draft Contracts\Well 20 Contracts\Well 20 Post Source Approval Work (1.23.24)\
CO3_CC1_20240306_180155_2024 Well 20 Support.docx
COML Council Packet 4-9-24, Page 108 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Kevin Fuhr, City Manager 15200
Brian Baltzell, Director Public Works
4/9/2024 Consent Agenda
Accept WSDOT Sandy Williams Communities Program Grant
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
2,000,000.00$0.00$2,000,000.00$
Staff recommends City Council motion to accept funds and approve use of funds for project delivery.
2024 Connecting Communities State Letter Moses Lake.pdf 1.53MB
GC2023-114 SR17 Shared Use Path - Patton to Grape Budget
Amendment.pdf 219.01KB
COML Council Packet 4-9-24, Page 109 of 222
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
SR 17 Shared Use Path - Patton Blvd to Grape Drive: The project grant funds will
support community outreach, right-of-way certification as needed, survey, design &
construction of a shared use Path approximately 1 mile in length with enhancements
to existing crosswalk at Patton Blvd. Staff successfully applied for and coordinated
with The Sandy Williams Connecting Communities Program to receive this funding
award.
https://wsdot.wa.gov/business-wsdot/support-local-programs/funding-programs/sandy-williams-connecting-
communities-program
Sandy Williams Connecting Communities Program is supported with funding from
Washington’s Climate Commitment Act. The CCA supports Washington’s climate
action efforts by putting cap-and -invest dollars to work reducing climate pollution,
creating jobs and improving public health. Information about the CCA is available
at www.climate.wa.gov.
This shared use path project along SR 17 was identified as segment 2 of 3 during a
2019 Corridor Study and was selected as top priority. Construction of the path will
eliminate the need to utilize the existing 8' shoulders of SR 17 for non-motorist
community members traveling between housing, commercial, educational and
employment centers currently. It will also greatly increase the comfort level for
exercising, walking, biking and rolling throughout our community.
N/A
Options and Results
Authorize staff to expend grant funds as is necessary to deliver project.
Staff will bring back options for recommended changes.
Staff requests Council direction to determine appropriate next steps.
COML Council Packet 4-9-24, Page 110 of 222
March 25, 2024
Mr. Brian Baltzell Public Works Director City of Moses Lake P.O. Box 1579
Moses Lake, WA 98837
RE: SR 17 Shared Use Path – Patton Blvd to Grape Drive 2023-25 Connecting Communities Pilot Program State Funding
Dear Mr. Baltzell: WSDOT is pleased to advise you that the above-mentioned project was selected to receive funding through the Connecting Communities Pilot program. The state funding is limited as shown below:
SR 17 Shared Use Path – Patton Blvd to Grape Drive $2,000,000
Scope: See attached project summary. In order to meet state requirements, the following are required:
• Project expenditures incurred before receiving notice from Local Programs of state fund authorization are not eligible for reimbursement.
• Please refer to the Local Programs webpage for detailed authorization information, including: (https://wsdot.wa.gov/business-wsdot/support-local-programs)
Local Agency Guidelines (LAG) manual for detailed requirements;
Transportation Improvement Program (TIP) and Statewide Transportation Improvement Program (STIP) amendments, as applicable;
Funding and billing forms;
Local Project Report is required to be completed by the end of June and December
each year. To access the database you will need an account name and password. Your account name is Moses Lake and your password is MosLa632. The password is case sensitive.
• On January 16, 2024, Governor Inslee issued Directive 24-01 “Use of Climate
Commitment Act Branding in Agency Contracts.” The directive compels agencies like
WSDOT that administer Climate Commitment Act (CCA)-funded programs to require subrecipients to implement consistent branding and funding acknowledgements.
COML Council Packet 4-9-24, Page 111 of 222
Mr. Brian Baltzell City of Moses Lake
March 25, 2024
Therefore, you are required to use the governor’s branding guidance for this CCA-funded project. If CCA is a portion of your project’s overall funding, please also list
other funding sources as applicable on your communications including webpages. It is
important to note that there is no additional funding for this effort, so please do what is feasible relative to your grant award. The Governor’s directive and related branding requirements are attached to this letter.
As a reminder, Local Programs encourages all agencies to submit monthly progress billings to
ensure timely reimbursement of eligible expenditures. If you have any questions, please contact your Region Local Programs Engineer, Brian Pearson at Brian.Pearson@wsdot.wa.gov or 509.667.3090.
Sincerely,
Jay Drye, PE
Director
Local Programs JD:st:cdm
Attachment
cc: Brian Pearson, North Central Region Local Programs Engineer
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2,000,000
1,725,000
30,000
200,000
25,000
20,000
COML Council Packet 4-9-24, Page 117 of 222
COML Council Packet 4-9-24, Page 118 of 222
DIRECTIVE OF THE GOVERNOR 24-01
Date: January 16, 2024 To: Executive and Small Cabinet Agencies
From: Governor Jay Inslee Subject: Use of Climate Commitment Act Branding in Agency Contracts
As agencies begin deploying appropriations from the Climate Commitment Act (CCA), we
are creating tools to ensure transparency about how CCA funding is being put to work across
the state. One of the ways we can help people see CCA benefits in their own neighborhoods
and communities is through consistent branding and funding acknowledgements.
Effective today, January 16, 2024, agency contracts related to CCA-funded programs and
projects must include provisions consistent with the attached branding contract guidelines.
The CCA is supercharging state efforts to reduce pollution and keep our air clean. The
projects and programs supported by the CCA provide Washingtonians more options for
cleaner, healthier homes, schools, businesses and communities. Examples include keeping
kids safe from asthma by switching to electric school buses and improving air ventilation
systems in schools; helping thousands of families reduce utility bills by weatherizing their
homes and upgrading to energy-efficient heat pumps; and creating clean energy jobs in solar,
wind, clean hydrogen and other clean energy sectors.
The attached CCA branding contract guidelines are similar to the kinds of funding
requirements often seen in federally-funded programs or other infrastructure funding
programs.
For CCA-funded contracts that were executed prior to this effective date, agencies should
evaluate on a case-by-case basis if amendments to include any or all of these requirements are
feasible or justifiably infeasible.
I appreciate everyone’s dedication and progress toward a cleaner, healthier, safer Washington
for all.
COML Council Packet 4-9-24, Page 119 of 222
Climate Commitment Act funding
acknowledgments and branding:
Contract guidelines for agencies
Last updated: January 16, 2024
Issued by Office of the Governor Pursuant to Directive 24-01
The Climate Commitment Act (CCA) is the centerpiece of the state’s climate action efforts.
Revenue from the program will support thousands of projects, programs and jobs that reduce
pollution, and improve the health, safety, and resilience of neighborhoods and communities across Washington state.
To strengthen public awareness of how CCA funding is used, the Office of the Governor is
directing state agencies that administer funding or manage a CCA-supported program to
include CCA funding acknowledgement and branding provisions in funding or contract agreements.
The following guidance and sample contract language is intended to help agencies identify
when and how to include requirements for funding acknowledgments and branding. These flow-down provisions apply to contractors, subcontractors, service providers and others doing business with the agency to implement a program that is receiving CCA funding. Such guidelines are similar to routine funding conditions from the federal government and will feel
familiar to many agencies, particularly those who do federally-funded public works projects.
This guidance is effective January 16, 2024. For CCA-funded contracts that were executed prior to this effective date, agencies should evaluate on a case-by-case basis if amendments to include any or all of these requirements are feasible or justifiably infeasible.
Appendix A provides the official brand guide for “Climate Commitment Act” logo usage, signage guidelines, and access to high-resolution files. The brand guide is also available at climate.wa.gov/brandtoolkit. Please feel free to refer grantees and contractors to that web page.
Funding source acknowledgement
Administering agencies and all funding recipients, including sub-grantees and local agencies
that receive CCA funding to supplement existing programs, must include recognition of CCA funding in alignment with this guidance.
COML Council Packet 4-9-24, Page 120 of 222
2
The funding source acknowledgment should be used in related publications, websites, signage, invitations and other media-related and public-outreach products. This is the standard funding
language to be used on websites and included in announcements, press releases, and
publications: “The [PROGRAM NAME / GRANT / ETC.] is supported with funding from Washington’s
Climate Commitment Act. The CCA supports Washington’s climate action efforts by
putting cap-and-invest dollars to work reducing climate pollution, creating jobs, and
improving public health. Information about the CCA is available at www.climate.wa.gov.”
Logo and signage, decals, stickers
In addition to including a funding acknowledgement on websites and media or outreach materials, recipients must display the “Climate Commitment Act” logo if logos for other
partnering organizations are included.
Logos must be printed on publicly-visible equipment and signage, as applicable and to the extent practical. If equipment and signage includes logos from other partners, it must also
include a “Climate Commitment Act” logo. Likely examples include EV charging station signs,
the side of an electric school bus, or the exterior surface of a heat pump.
Examples of applicable projects and programs
Large capital projects
Examples include but are not limited to large-scale or solar projects, shore power at ports, or
retrofits on public buildings.
o Pre- and during construction project signs
If the project is installing pre-construction signage or will have signage up during
construction, signage must include a CCA logo.
o Website information If the project has a related website or webpage, it must include the funding
acknowledgement. If the website or webpage includes logos for other project partners
or funding sources, it must also include a CCA logo.
o Public outreach or promotional materials Fliers, brochures, public meeting notices, and other similar education and outreach
materials must include the funding acknowledgement. If materials include logos for
other project partners, they must also include a CCA logo.
o Permanent signs Once the project is complete, any prominent signage that will remain permanently within
the footprint of the site must include a CCA logo.
COML Council Packet 4-9-24, Page 121 of 222
3
Small capital projects Examples include but are not limited to culvert projects along major roadways, community solar
projects, new or upgraded EV charging stations, new or upgraded air quality monitoring
stations.
o Pre- and during construction project signs
If the project is installing pre-construction signage or will have signage up during
construction, it must include a CCA logo.
o Website information If the project has a related website or webpage, it must include the funding
acknowledgement. If the website or webpage includes logos for other project partners
or funding sources, it must also include a CCA logo.
o Public outreach or promotional materials Fliers, brochures, public meeting notices, and other similar education and outreach
materials must include the funding acknowledgement. If materials include logos of other
project partners, they must also include a CCA logo.
o Permanent signs Once the project is complete, any prominent signage that will remain permanently within
the footprint of the site must include a CCA logo.
Stationary projects or consumer incentive programs Examples include but are not limited to weatherization or heat pump programs for homes or
apartments, new electric school buses, free youth transit.
o Website information If the project has a related website or webpage, it must include the funding
acknowledgement. If the website or webpage includes logos for other project partners
or funding sources, it must also include a CCA logo.
o Public outreach or promotional materials Fliers, brochures, public meeting notices, and other similar education and outreach
materials must include the funding acknowledgement. If materials include logos of other
project partners, they must also include a CCA logo.
o On-product Equipment such as heat pumps, updated electrical panels, zero-emission or electric-
hybrid vehicles including drayage trucks, buses or ferries, and other products or
equipment purchased with CCA funding must include a CCA logo decal in a place that is
generally visible to the consumer or user. This includes equipment installed in residential buildings as well as commercial, industrial and community buildings or settings.
COML Council Packet 4-9-24, Page 122 of 222
4
Sample contract language
This sample contract language is a starting point. Please work with your contracts manager to
ensure contract language is appropriate for the specific circumstances of your project or program. The intent and spirit of this contract language is to ensure the Climate Commitment Act is consistently and properly recognized as a source of funding, particularly to emphasize the
benefit to the end user.
Section X.Y: Ensure coordinated Climate Commitment Act branding [PROGRAM/PROJECT NAME] received funding from Washington’s Climate Commitment Act (CCA). To strengthen public awareness of how CCA funding is used, the Office of the Governor
is directing state agencies that administer funding or manage a CCA-supported program to
ensure consistent branding and funding acknowledgments are used in all communications and
included in funding agreements and contracts. The “Climate Commitment Act” logo and funding acknowledgment make it easy for consumers and the public to see how the state is using CCA funds to reduce climate pollution, create jobs, and improve public health and the environment,
particularly for low-income and overburdened populations.
The following provisions apply to all contractors, subcontractors, service providers and others who assist CONTRACTOR in implementing [PROGRAM/PROJECT NAME].
Logo requirements. The CCA logo must be used in the following circumstances, consistent with
the branding guidelines posted at climate.wa.gov/brandtoolkit.
o Any PROGRAM/PROJECT website or webpage that includes logos from other funding partners.
o Any PROGRAM/PROJECT media or public information materials that include logos
from other funding partners.
o On-site signage [for consumer-related projects or programs this could instead say
something like: Decal placed on front of installed heat pump OR logo printed on delivery tag]
Funding source acknowledgement. This standard funding language must be used on websites
and included in announcements, press releases and publications used for media-related activities, publicity and public outreach.
“The [PROGRAM/PROJECT] is supported with funding from Washington’s Climate Commitment
Act. The CCA supports Washington’s climate action efforts by putting cap-and-invest dollars to
work reducing climate pollution, creating jobs, and improving public health. Information about the CCA is available at www.climate.wa.gov.”
COML Council Packet 4-9-24, Page 123 of 222
5
Appendix A: Official brand guide and toolkit
This brand guide and logo and font files are available online at climate.wa.gov/brandtoolkit.
To strengthen public awareness of how Climate Commitment Act (CCA) funding is put to work, state agencies and recipients of programs or projects funded by the CCA are directed to use a funding acknowledgement and/or logo.
The Climate Commitment Act logo is a symbol of the state's commitment to fighting climate
change and pollution. The simple but powerful design conveys our progress towards a cleaner, zero emission future. The primary color palette is the three shades of green representing the Evergreen State's natural beauty and its commitment to environmental protection.
The funding acknowledgement provides standard language for websites, press releases, public
outreach materials and other related promotional products. The guidance below provides general information about funding acknowledgement language and
logo usage. Funding recipients should refer to their contracts for information about if and when
these requirements apply.
Funding acknowledgement Administering agencies and all funding recipients, including sub-grantees and local agencies that
receive CCA funding to supplement existing programs, must include recognition of CCA funding
in alignment with this guidance.
The funding source acknowledgment should be used in project- or program-related publications, websites, signage, invitations, and other media-related and public-outreach products. The
standard funding language to be used is:
“The [PROGRAM NAME / GRANT / ETC.] is supported with funding from Washington’s Climate Commitment Act. The CCA supports Washington’s climate action efforts by putting cap-and-
invest dollars to work reducing climate pollution, creating jobs, and improving public health.
Information about the CCA is available at www.climate.wa.gov.”
Logo usage The logo should always be used in its entirety, with the wordmark and symbols together. The logo
should not be altered in any way, including changing the colors, proportions or fonts.
The logo should be displayed on a white background. If a white background isn’t possible, use the primary logo with the border or one of the approved white logos. The primary color palette is the shades of green, but it can also be used in black and white and/or gray scale as required.
The logo can be used in a variety of applications, including websites, social media, print materials,
and signage. When using the logo in digital applications or printing for signage, it is important to use a high-resolution version of the logo file.
COML Council Packet 4-9-24, Page 124 of 222
6
Primary logo
Primary with border & white background
Social media icon: For social media sites where a round icon is necessary or useful.
Grayscale logo: ONLY use the grayscale logo for black and white printing, limited color printing, or low-resolution displays.
White logo While the primary CCA logo is always preferred, circumstances may necessitate using an alternative white logo. To ensure optimal visual impact, use only the listed logos with the black
background or one of the approved CCA green hues.
COML Council Packet 4-9-24, Page 125 of 222
7
Non-allowable logo modifications - DO NOT: Squeeze, stretch, or condense logo out of proportion or reduce size smaller than 100px:
.
Retype or change the font in the logotype:
Combine with other elements:
Outline the logo:
COML Council Packet 4-9-24, Page 126 of 222
8
Place logo on low contrasted background:
These are just a few examples of non-allowable modifications. For more information, please contact the Office of the Governor.
COLORS & FONTS
PRIMARY GREEN | Color codes for copy/paste on next page.
GRAYSCALE
FONTS
COML Council Packet 4-9-24, Page 127 of 222
Budget Adjustment Request
Type of Adjustment*
Instructions:
If you are receiving additional revenues from an outside source (i.e. grant funds, donations, etc.) you must include the
appropriate revenue code that the funds will be deposited to and the amount in the revenue section above. Enter the
appropriate expenditure code/amount that the funds will be spent from in the expenditure section. The Use of Fund
Balance will calculate automatically from the Revenue and Expenditure amounts entered.
Fund*Department*
Project/Grant Number
Revenues
If there are no Revenues, please enter '0' in each column.
Fund*Dept *Object *Detail *Amount*
Expenditures
If there are no Expenditures, please enter '0' in each column.
Fund*Dept *Object *Detail *Amount*
Revenue Subtotal
Expenditures Subtotal
Use of Fund Balance
Explanation*
Amendment Transfer
114 - Paths & Trails 114 - Paths & Trails
GC2023-114 SR17 Shared Use Path - Patton to Grape
If appropriate, please enter the Finance assigned Project/Grant Number.
Budget Adjustment Details
114
###
000
###
33600
3####
1000
####
2,000,000.00$
114
###
114
###
59562
5####
0639
####
2,000,000.00$
2,000,000.00$
2,000,000.00$
0.00$
On March 25, 2024, City staff were notified that we had been awarded a $2,000,000 grant from Washington
State Department of Transportation (WSDOT)'s Sandy Williams Connecting Communities Pilot Program that
utilizes state funding. This is a zero-match reimbursable grant, and the funds will be utilized to design and
construction a one-mile-long shared used path between Patton Blvd and Grape Drive parallel to SR-17.
COML Council Packet 4-9-24, Page 128 of 222
Project Budget Sheet/Other Supporting Document
Name
Signature*
Submittal Date
Submitter Email
Is this being submitted by the City Manager, Assistant City Manager, or a Director?*
Submitting Department*
Division*
2024 Connecting Communities State Letter Moses Lake.pdf 1.53MB
2024-03-28, GC2023-114 SR17 Shared Use Path - Patton to Grape.pdf 447.92KB
Submitter Information
Leigh Ramsey
Please type your first and last name in the space above. Your typed first and last name will serve as your signature. Your signature signifies your
acknowledgement of and agreement with the content of this form.
3/28/2024
lramsey@cityofml.com
Yes No
Public Works
Engineering
COML Council Packet 4-9-24, Page 129 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
Kevin Fuhr, City Manager 15267
Brian Baltzell, Director Public Works
4/9/2024 Consent Agenda
Developer Agreement for Laguna Park Short Plat
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
97,630.02$93,651.15$3,978.87$
Staff is requesting Council authorize the City Manager to enter into a Developer Agreement with Lengco
Enterprises, LLC to build the north half of Sage Road along the frontage of the Laguna Park Short Plat.
Laguna Park Short Plat DA Complete 3-29-24 (2).pdf 601.14KB
During the platting of the Laguna Park Short Plat, staff determined that it would be in the best interest of the City
to partner with the developer and have them build the north half at the same time they are making their required
improvements to have a complete roadway.
The developer will install the asphalt, base rock, curb and gutter, and necessary storm drainage facilities on the
north half of Sage Road as it fronts the proposed Laguna Park Short Plat.
Budgeted funds will need to be spent.
Options and Results
City Manager will sign the developer agreement and the City will reimburse the developer for the agreed upon
improvements.
Staff will bring back options for recommended changes.
COML Council Packet 4-9-24, Page 130 of 222
No Action Taken:
City will receive a half constructed roadway adjacent to the plat.
COML Council Packet 4-9-24, Page 131 of 222
DEVELOPER EXTENSION AGREEMENT
BETWEEN
CITY OF MOSES LAKE, WASHINGTON,
AND
LENGCO ENTERPRISES, LLC,
FOR INSTALLATION OF PUBLIC STREET AND STORMWATER IMPROVEMENTS
1.Preamble. THIS DEVELOPER EXTENSION AGREEMENT is made and entered into
by and between The City of Moses Lake, a municipal corporation of the State of Washington,
herein known as “City,” and Lengco Enterprises, LLC, a Washington limited liability company
authorized to do business in the State of Washington, herein known as “Developer.”
2.Recitals.
2.1 City operates a municipal street system and stormwater utility that maintains and
operates within the City’s limits.
2.2 Developer owns certain real property in the City and is legally described in Exhibit
"A" attached hereto and incorporated herein by this reference, herein the
“Property.”
2.3 The City has requested the Developer complete street and stormwater
improvements outside the platting requirements on the City’s behalf.
2.4 City has approved and has on file, the plans, specifications, and cost estimate for
construction of approved street and stormwater improvements that will complete
the north half of Sage Road, herein the “Improvements.”
2.5 In order to provide for efficiency of the street and storm system, the City will
contribute to the Improvements by compensating the Developer for installing the
improvements described in Exhibit “B” attached hereto and incorporated herein by
this reference, herein the “Improvements”, and the pro rata share of the
maintenance bond.
2.6 City has the authority pursuant to RCW 35.91.020 to enter into this Agreement.
3.Agreement. In consideration of the mutual benefits and covenants described herein, the
parties agree as follows:
COML Council Packet 4-9-24, Page 132 of 222
DEVELOPER EXTENSION AGREEMENT PAGE 2 OF 6
3.1 Purpose. The purpose of this Agreement is to set forth the requirements for
construction and maintenance of the Improvements and to provide for contributions
for additional improvements financed by the City.
3.2 Construction of Improvements by Developer. Developer agrees that it shall
construct at its own expense all Improvements necessary to provide the north half
of Sage Road which Improvements are described on Exhibit B attached hereto and
incorporated herein by this reference. The City shall contribute to the
Improvements by compensating the Developer for constructing approximately 540
lineal feet of ½ width road improvements including asphalt, curb, sidewalk, curb
ramps and stormwater improvements, cut and removal of asphalt, traffic control,
and patch asphalt as needed for these additional municipal improvements; and the
pro rata share of the engineering, permit fees, surveying, testing,
performance/maintenance bond and loan fees/interest. All construction shall be in
accordance with the City approved engineering plan and all other applicable City,
County, State, and Federal ordinances, statutes, or regulations. The City reserves
the right to, at any time, require modification of the plans in the event of errors or
mistakes in the drawings, or if new information becomes available that requires a
change in the plans to property construct the Improvements. Plan changes initiated
by the Developer must be approved in writing by the City engineer prior to
commencement or alteration of the work; modifications to engineered plans and
specs may be required to be submitted for review and approval.
3.3 City Inspection and Acceptance of Improvements. Developer shall, upon execution
of this Agreement, construction of the Improvements, and final acceptance of the
Improvements by the City, transfer the Improvements to the City free and clear of
all liens and debts, for inclusion into the property of the City as a public facility,
including any right, title and interest in any property upon which the Improvements
are located. Upon acceptance of the Improvement by the City, all further
maintenance and operation costs of the Improvements shall be borne by the City
except as may be expressly provided otherwise in this Agreement.
3.4 Financial Contribution by City. Within thirty (30) days of acceptance of the
Improvements by the City, the City shall pay to Developer the not to exceed amount
of Ninety-Seven Thousand Six Hundred Thirty dollars and Two cents.
($97,630.02) as its full contribution for improvements described in Section 3.2. The
developer shall submit actual costs to the City for review and the City will pay for
the actual costs incurred by the developer on the City’s behalf to construct the
improvements described in 3.2.
COML Council Packet 4-9-24, Page 133 of 222
DEVELOPER EXTENSION AGREEMENT PAGE 3 OF 6
3.5 Costs Imposed on Developer. City ordinances require, and the Developer agrees to
pay, the following fees, charges and deposits associated with the construction of
the Improvements:
3.5.1 Design Review Services. Design Review services shall be charged to the
project at the current hourly rate, as established by the City. The Developer
agrees to pay outstanding Design Review fees prior to the City accepting
the utility extensions.
•Consultation with the Developer regarding the requirements of the
City for construction of the utility extensions.
•Assistance with preliminary layout of the proposed utility
extensions, as needed.
•Review and approval of plans, specifications, and necessary
documents.
•Consultation with other agencies (i.e. other City departments, other
governmental agencies) regarding plans and specifications, as
necessary.
•Submittal of plans and specifications to other agencies (i.e. other
City departments, other governmental agencies) for required
approvals, as necessary.
•Final review of the required documents to assure that the City has
legal title to necessary right-of-way and easements, review and
approval of the Bill of Sale provided by the Developer, and
acceptance of the utility extensions by the City.
3.5.2 Construction Inspection Services. Construction Inspection Services shall be
charged to the project at the current hourly rate, as established by the City,
including the established overtime rate, for time outside regular business
hours. The Developer agrees to pay outstanding Construction Inspection
fees prior to the City accepting the utility extensions.
•The Preconstruction Conference.
•Inspection of the construction in progress, as needed to ensure that
construction of the utility extensions are in accordance with this
Agreement, the Plans and Specifications, and any other City, State,
or Federal requirements.
•Final inspection of the completed extension and preparation of the
inspection report, which shall set forth any deficiencies that may
exist.
•Re-inspection of any deficient work.
COML Council Packet 4-9-24, Page 134 of 222
DEVELOPER EXTENSION AGREEMENT PAGE 4 OF 6
•Review of the as-built construction drawings.
•Re-inspection at the end of the two-year warranty period.
•Labor charges for water main shut-downs will be billed to the
Developer.
3.6 Term of Agreement. This Agreement and all obligations contained herein, shall
terminate upon acceptance of the Improvements by the City, with the exception of
any warranties and indemnification agreements which shall survive the termination
of this Agreement.
3.7 Limitation of Assignment. This Agreement shall not be assignable by Developer
without the prior written approval of City which approval will not be unreasonably
withheld.
3.8 Permits. Nothing in this Agreement shall be construed to waive any permitting or
approval process otherwise required by any Federal, State or County agency in
conjunction with development on the Property. All permits required by any
governmental agency, shall be obtained by the developer unless the City is required
by the agency to obtain the permit. Permits must be obtained prior to commencing
with construction. Prior to any street excavation, clearing, and grading, or other
work requiring a regulatory permit, the Developer or Developer’s contractor shall
present a copy of the appropriate permit to the City.
3.9 Indemnification. The Developer shall defend, indemnify, and hold the City, its
officers, officials, employees and volunteers harmless from any and all claims,
injuries, damages, losses or suits including attorney fees, arising out of or in
connection with activities or operations performed by the Developer or on the
Developer’s behalf arising out of this Agreement, except for injuries and damages
caused by the sole negligence of the City.
3.10 Insurance. The Developer shall procure and maintain for the duration of the
Agreement and until the Improvements are accepted by the City, general liability
insurance covering premises, products-completed operations, and contractual
liability with limits no less than $2,000,000 each occurrence, $2,000,000 general
aggregate against claims for injuries to persons or damage to property which may
arise from or in connection with the construction of the Improvements. The City
and its elected and appointed officials, officers, employees, agents, and volunteers
shall be named as an additional insured on the insurance policy and such policy
shall provide that the Developer’s insurance coverages shall be primary insurance
as respects the City. Developer shall provide a certificate of insurance evidencing
the required insurance before commencing construction of the Improvements.
COML Council Packet 4-9-24, Page 135 of 222
DEVELOPER EXTENSION AGREEMENT PAGE 5 OF 6
Insurance is to be placed with insurers with a current A.M. Best rating of not less
than A:VII. Developer’s maintenance of insurance as required by the Agreement
shall not be construed to limit the liability of the Developer to the coverage
provided by such insurance, or otherwise limit the City’s recourse to any remedy
available at law or in equity.
3.11 Developer's Warranty of Improvements. Developer agrees and expressly warrants
to the City that the Improvements shall be installed pursuant to the approved design
plans at the Developer's expense, will function in a satisfactory manner and be in
compliance with recognized engineering and construction standards. Such warranty
shall be in effect for two years commencing on the date of the City's acceptance of
the Improvements as constructed.
3.12 Maintenance Bonds. Developer shall provide a maintenance bond in the amount of
$104,000.00 that shall run for two years after acceptance of the Improvements, or
until released by the City, whichever is longer, and shall guarantee the City
against defects in materials and workmanship in the Improvements up to 50% of
actual cost of construction. All bonds shall be executed by a surety company
authorized to do business in the State of Washington. All bonds must meet the
approval of the City Attorney as to form. The City shall reimburse the Developer
for the pro rata share of the bond premium caused by the additional expense
of the additional municipal improvements identified in Paragraphs 2.5 and 3.2.
3.13 Restoration of Site. The Developer agrees to restore all public and private property
disrupted by the installation of the Project, to its original condition upon
completion. In the event the Developer damages or disrupts existing improvements,
the repairs shall be made at the Developer's expense. The entire job site will be left
with a neat and workmanlike appearance.
3.14 Risk of Loss. The Developer shall bear the risk of loss or damage for all finished
or partially finished work until the entire extension has received the City’s final
acceptance. If more than one extension is being constructed, each extension may
be accepted individually, but all extensions must be complete by the Project
completion date.
3.15 Possession And/Or Use Prior to Acceptance. The City shall have the right to take
possession of and/or use any completed or partially completed portions of the
infrastructure although the time may not have expired for completing the entire
Project. Possession and/or use shall not be deemed acceptance of any portion of the
COML Council Packet 4-9-24, Page 136 of 222
DEVELOPER EXTENSION AGREEMENT PAGE 6 OF 6
Project. The City is not obligated to supply water, sewer, and/or stormwater service
to the Developer's property until after the City’s final acceptance.
3.16 Maintenance Work. A. When defects in the Improvements are discovered within
the guaranty period specified in Section 3.14 above, Developer shall start work to
remedy any defects within seven (7) days of notice by the City and shall complete
the work within thirty (30) days of beginning remedial work. Failure to begin
correction or replacement within seven days will result in the City notifying the
Developer’s bonding company of the Developer’s failure to complete the required
construction. The City will give the bonding company thirty (30) days to complete
the required correction or replacement. If correction or replacement has not begun
within the above-stated time period or is an emergency as determined by the City
at its sole discretion, or when damage may result from delay, correction or
replacement may be made by the City or by a contractor hired by the City at the
Developer’s expense. The City shall retain the right to pursue any remedy at law or
equity to recover all costs associated with any work performed.
3.17 Entire Agreement. This Agreement constitutes the entire agreement between the
Developer and the City with respect to the subject matter hereof and supersedes any
and all prior agreements and understandings, oral or written, with respect to such
subject matter. Any alteration or amendment or modification of this Agreement
shall be valid only if set forth in writing and signed by both parties hereto.
3.18 Governing Law. This Agreement shall be governed by laws of the State of
Washington.
3.19 Severability. In the event any portion of this Agreement is determined to be void or
unenforceable, such provision shall be severable and will not affect the validity of
the remaining portion of this Agreement.
3.20 Time. Time is of the essence with respect to this Agreement.
The parties below execute this Agreement, which shall become effective on the last date
entered below.
CITY OF MOSES LAKE Lengco Enterprises, LLC
___________________________________ ___________________________________
Kevin Fuhr, City Manager
Date:________________________________ Date:_______________________________
COML Council Packet 4-9-24, Page 137 of 222
EXHIBIT A A tract of land in the Northeast Quarter of Section 32, Township 19 North, Range 28 East, W.M., Grant County, Washington, more fully described as follows:
Commencing at the North Quarter comer of said Section 32, a two-inch brass cap marked PLS 17690 in monument case; thence South 89°31'00" East on the North line of said Section 32 and the
centerline of Sage Road, 460.02 feet to a City of Moses Lake brass cap in monument case marking the intersection of Sage Road and Laguna Drive; thence South 31°09’45" West on the centerline of
said Laguna Drive 264.63 feet to a City of Moses Lake brass cap monument in monument case; thence South 17°47'09" West on the centerline of said Laguna Drive 82.52 feet; thence South 72°12’51" East, 30.00 feet to a point on the East right-of-way of said Laguna Drive, said point being the Northwest comer of Lot 3, Laguna Shores Short Plat, recorded in Book 6 of Short Plats, pages 22 and 23, records of Grant County, the True Point of Beginning; thence northeasterly along the boundary line of said Lot 3, a 20.00 foot radius curve concave to the Southeast, the center of said curve bears South 72°12'51" East, (the central angle of said curve is 90°31’38") an arc distance of 31.60 feet to the beginning of a 280.00 foot radius reverse curve concave to the North; thence along said curve to the left and the North line of said Lot 3, a distance of 2.61 feet (the central angle of said curve is 00°31’59”); thence on a non-tangent line South 42°24'12" East on the Northeast line of said Lot 3, a distance of 217.00 feet, more or less, to the shoreline of Moses Lake, said point being designated as Point A.
Beginning again at the True Point of Beginning; thence North 17°47'09" East along the East right-of-way of Laguna Drive 79.00 feet; thence North 31°09'45" East along said right-of-way 244.03 feet to the South right-of-way of Sage Road as conveyed to the Town of Westlake by Quit Claim Deed recorded AFN. 556770; thence South 89°31’00" East along the South right-of-way of Sage Road, 578.90 feet to a point on the West boundary of the land conveyed to Sunrise Resorts by Statutory Warranty Deed recorded on page 463 of Book 378 under AFN 725416; thence South 00°29'00" West along the West boundary of said land conveyed to Sunrise Resorts 370 feet, more or less, to the centerline of a Lagoon West of Moses Lake; thence southwesterly along the centerline of the Lagoon to a point that bears South 42°24'12" East of designated Point "A"; thence North 42°24'12" West 50 feet, more or less, to the designated Point "A".
EXCEPT the Plat of Laguna Shores Major Plat, according to the plat thereof recorded in Volume 25 of Plats, pages 51, 52 and 53, records of Grant County, Washington.
COML Council Packet 4-9-24, Page 138 of 222
EXHIBIT B
LAGUNA PARK SHORT PLAT DEVELOPER AGREEMENT COST ESTIMATE
CONSTRUCTION COSTS (CITY SHARE)
Mobilization 7,500.00$
Asphalt 29,513.30$
Top Course 6,804.00$
Subgrade 3,053.10$
Asphalt Adjustments 3,375.00$
ADA Truncated Domes 3,760.00$
Sidewalk 645.00$
Type A Curb 10,500.00$
Traffic Control 2,500.00$
10" PVC Storm Pipe 3,150.00$
New Catch Basins 6,750.00$
Sub Total 77,550.40$
8.4% Sales Tax (Mobilization only)630.00$
Construction Total 78,180.40$
ENGINEERING/PERMITTING COSTS (CITY SHARE)
Civil Engineering 7,968.80$
Surveying 2,300.00$
Materials Testing 1,500.00$
Construction Permit Fee 1,966.81$
Construction Bonds 3,315.65$
Admin Fees 2,398.36$
Engineering/Permitting Total 19,449.62$
TOTAL CITY PARTICIPATION 97,630.02$
COML Council Packet 4-9-24, Page 139 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
Kevin Fuhr, City Manager 15275
Brian Baltzell, Director Public Works
4/9/2024 Consent Agenda
Consultant Agreement SR17/Stratford Rd Ped Improvement Project
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
283,010.43$685,088.00$0.00$
Authorize City Manager to execute phased consultant agreements up to $685,088.00 in connection to the
SR17/Stratford Road Pedestrian Improvement Project.
SR17 Stratford Agmt_Toole Design_04-01-2024.pdf 4.87MB
The vicinity of the SR17 and Stratford Road interchange (Figure 1) lacks safe and adequate accommodations
for non-motorized travelers. This grant funded agreement will involve community outreach, conflict & data
analysis and preparation of conceptual and preliminary design of solutions that will enhance the transportation
network. Completion of this planning and design is preparatory for construction grants of remedies, solutions
and network resiliency .
n/a
Options and Results
Staff will execute agreement as presented.
Staff will bring back options for recommended changes.
Staff will await further Instructions from council.
COML Council Packet 4-9-24, Page 140 of 222
Local Agency A&E Professional Services
Cost Plus Fixed Fee Consultant Agreement
Agreement Number:
Firm/Organization Legal Name (do not use dba’s):
Address Federal Aid Number
UBI Number Federal TIN or SSN Number
Execution Date Completion Date
1099 Form Required
Yes No
Federal Participation
Yes No
Project Title
Description of Work
Yes No DBE Participation
Yes No MBE Participation
Yes No WBE Participation
Yes No SBE Participation
Total Amount Authorized:
Management Reserve Fund:
Maximum Amount Payable:
Index of Exhibits
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Exhibit F
Exhibit G
Exhibit H
Exhibit I
Exhibit J
Scope of Work
DBE Participation
Preparation and Delivery of Electronic Engineering and Other Data
Prime Consultant Cost Computations
Sub-consultant Cost Computations
Title VI Assurances
Certification Documents
Liability Insurance Increase
Alleged Consultant Design Error Procedures
Consultant Claim Procedures Agreement Number:
Page 1 of 14 Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement
Revised 02/01/2021
COML Council Packet 4-9-24, Page 141 of 222
THIS AGREEMENT, made and entered into as shown in the “Execution Date” box on page one (1) of this
AGREEMENT, between the ,
hereinafter called the “AGENCY,” and the “Firm / Organization Name” referenced on page one (1) of this
AGREEMENT, hereinafter called the “CONSULTANT.”
WHEREAS, the AGENCY desires to accomplish the work referenced in “Description of Work” on page one (1)
of this AGREEMENT and hereafter called the “SERVICES;” and does not have sufficient staff to meet the required
commitment and therefore deems it advisable and desirable to engage the assistance of a CONSULTANT to provide
the necessary SERVICES; and
WHEREAS, the CONSULTANT represents that they comply with the Washington State Statutes relating
to professional registration, if applicable, and has signified a willingness to furnish consulting services to
the AGENCY.
NOW, THEREFORE, in consideration of the terms, conditions, covenants, and performance contained herein,
or attached and incorporated and made a part hereof, the parties hereto agree as follows:
I.General Description of Work
The work under this AGREEMENT shall consist of the above-described SERVICES as herein defined, and
necessary to accomplish the completed work for this project. The CONSULTANT shall furnish all services, labor,
and related equipment and, if applicable, sub-consultants and subcontractors necessary to conduct and complete the
SERVICES as designated elsewhere in this AGREEMENT.
II.General Scope of Work
The Scope of Work and projected level of effort required for these SERVICES is described in Exhibit “A” attached
hereto and by this reference made a part of this AGREEMENT. The General Scope of Work was developed
utilizing performance based contracting methodologies.
III.General Requirements
All aspects of coordination of the work of this AGREEMENT with outside agencies, groups, or individuals shall
receive advance approval by the AGENCY. Necessary contacts and meetings with agencies, groups, and/or
individuals shall be coordinated through the AGENCY. The CONSULTANT shall attend coordination, progress,
and presentation meetings with the AGENCY and/or such State, Federal, Community, City, or County officials,
groups or individuals as may be requested by the AGENCY. The AGENCY will provide the CONSULTANT
sufficient notice prior to meetings requiring CONSULTANT participation. The minimum required hours or days’
notice shall be agreed to between the AGENCY and the CONSULTANT and shown in Exhibit “A.”
The CONSULTANT shall prepare a monthly progress report, in a form approved by the AGENCY, which will
outline in written and graphical form the various phases and the order of performance of the SERVICES in
sufficient detail so that the progress of the SERVICES can easily be evaluated.
The CONSULTANT, any sub-consultants, and the AGENCY shall comply with all Federal, State, and local laws,
rules, codes, regulations, and all AGENCY policies and directives, applicable to the work to be performed under
this AGREEMENT. This AGREEMENT shall be interpreted and construed in accordance with the laws of the State
of Washington.
Agreement Number:
Page 2 of 14 Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement
Revised 02/01/2021
COML Council Packet 4-9-24, Page 142 of 222
Participation for Disadvantaged Business Enterprises (DBE) or Small Business Enterprises (SBE), if required, per 49 CFR Part 26, shall be shown on the heading of this AGREEMENT. If DBE firms are utilized at the commencement of this AGREEMENT, the amounts authorized to each firm and their certification number will be shown on Exhibit “B” attached hereto and by this reference made part of this AGREEMENT. If the Prime CONSULTANT is a DBE certified firm they must comply with the Commercial Useful Function (CUF) regulation outlined in the AGENCY’s “DBE Program Participation Plan” and perform a minimum of 30% of the total amount of this AGREEMENT. It is recommended, but not required, that non-DBE Prime CONSULTANTS perform a minimum of 30% of the total amount of this AGREEMENT.
In the absents of a mandatory DBE goal, a voluntary SBE goal amount of ten percent of the Consultant Agreement is established. The Consultant shall develop a SBE Participation Plan prior to commencing work. Although the goal is voluntary, the outreach efforts to provide SBE maximum practicable opportunities are not.
The CONSULTANT, on a monthly basis, shall enter the amounts paid to all firms (including Prime) involved with this AGREEMENT into the wsdot.diversitycompliance.com program. Payment information shall identify any DBE Participation.
All Reports, PS&E materials, and other data furnished to the CONSULTANT by the AGENCY shall be returned. All electronic files, prepared by the CONSULTANT, must meet the requirements as outlined in Exhibit “C – Preparation and Delivery of Electronic Engineering and other Data.”
All designs, drawings, specifications, documents, and other work products, including all electronic files, prepared by the CONSULTANT prior to completion or termination of this AGREEMENT are instruments of service for these SERVICES, and are the property of the AGENCY. Reuse by the AGENCY or by others, acting through or on behalf of the AGENCY of any such instruments of service, not occurring as a part of this SERVICE, shall be without liability or legal exposure to the CONSULTANT.
Any and all notices or requests required under this AGREEMENT shall be made in writing and sent to the other party by (i) certified mail, return receipt requested, or (ii) by email or facsimile, to the address set forth below:
If to AGENCY: If to CONSULTANT: Name: Name: Agency: Agency: Address: Address: City: State: Zip: City: State: Zip: Email: Email: Phone: Phone: Facsimile: Facsimile:
IV.Time for Beginning and Completion
The CONSULTANT shall not begin any work under the terms of this AGREEMENT until authorized in writing by the AGENCY. All work under this AGREEMENT shall be completed by the date shown in the heading of this AGREEMENT titled “Completion Date.”
The established completion time shall not be extended because of any delays attributable to the CONSULTANT, but may be extended by the AGENCY in the event of a delay attributable to the AGENCY, or because of unavoidable delays caused by an act of GOD, governmental actions, or other conditions beyond the control of the CONSULTANT. A prior supplemental AGREEMENT issued by the AGENCY is required to extend the established completion time.
Agreement Number:
Page 3 of 14 Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021
COML Council Packet 4-9-24, Page 143 of 222
V.Payment Provisions
The CONSULTANT shall be paid by the AGENCY for completed SERVICES rendered under this AGREEMENT
as provided hereinafter. Such payment shall be full compensation for SERVICES performed or SERVICES
rendered and for all labor, materials, supplies, equipment, and incidentals necessary to complete SERVICES,
specified in Section II, “Scope of Work”. The CONSULTANT shall conform to all applicable portions of 48 CFR
Part 31 (www.ecfr.gov). The estimate in support of the Cost Plus Fixed Fee amount is attached hereto as Exhibits
“D” and “E” and by this reference made part of this AGREEMENT.
A.Actual Costs: Payment for all consulting services for this PROJECT shall be on the basis of the
CONSULTANT’S actual cost plus a fixed fee. The actual cost shall include direct salary cost, indirect cost rate,
and direct non-salary costs.
1.Direct (RAW) Labor Costs: The Direct (RAW) Labor Cost is the direct salary paid to principals,
professional, technical, and clerical personnel for the time they are productively engaged in work necessary
to fulfill the terms of this AGREEMENT. The CONSULTANT shall maintain support data to verify the
direct salary costs billed to the AGENCY.
2.Indirect Cost Rate (ICR) Costs: ICR Costs are those costs, other than direct costs, which are included as such
on the books of the CONSULTANT in the normal everyday keeping of its books. Progress payments shall
be made at the ICR rates shown in attached Exhibits “D” and “E” of this AGREEMENT. Total
ICR payment shall be based on Actual Costs. The AGENCY agrees to reimburse the CONSULTANT
the actual ICR costs verified by audit, up to the Maximum Total Amount Payable, authorized under this
AGREEMENT, when accumulated with all other Actual Costs.
A summary of the CONSULTANT’S cost estimate and the ICR percentage is shown in Exhibits “D” and
“E”, attached hereto and by this reference made part of this AGREEMENT. The CONSULTANT (prime and
all A&E sub-consultants) will submit to the AGENCY within six (6) months after the end of each firm’s
fiscal year, an ICR schedule in the format required by the AGENCY (cost category, dollar expenditures, etc.)
for the purpose of adjusting the ICR rate for billings received and paid during the fiscal year represented by
the ICR schedule. It shall also be used for the computation of progress payments during the following year
and for retroactively adjusting the previous year’s ICR cost to reflect the actual rate. The ICR schedule will
be sent to Email: ConsultantRates@wsdot.wa.gov.
Failure to supply this information by either the prime CONSULTANT or any of their A&E sub-consultants
shall cause the AGENCY to withhold payment of the billed ICR costs until such time as the required
information is received and an overhead rate for billing purposes is approved.
The AGENCY’s Project Manager and/or the Federal Government may perform an audit of the
CONSULTANT’S books and records at any time during regular business hours to determine the actual ICR
rate, if they so desire.
3.Direct Non-Salary Costs: Direct Non-Salary Costs will be reimbursed at the Actual Cost to the
CONSULTANT. (excluding Meals, which are reimbursed at the per diem rates identified in this section)
These charges may include, but are not limited to, the following items: travel, printing, long distance
telephone, supplies, computer charges and fees of sub-consultants. Air or train travel will be reimbursed
only to economy class levels unless otherwise approved by the AGENCY. The CONSULTANT shall
comply with the rules and regulations regarding travel costs (excluding air, train, and rental car costs) in
accordance with WSDOT’s Accounting Manual M 13-82, Chapter 10 – Travel Rules and Procedures, and
revisions thereto. Air, train, and rental car costs shall be reimbursed in accordance with 48 Code of Federal
Regulations (CFR) Part 31.205-46 “Travel Costs.” The billing for Direct Non-Salary Costs shall include an
itemized listing of the charges directly identifiable with the PROJECT. The CONSULTANT shall maintain
the original supporting documents in their office. Copies of the original supporting documents shall be
supplied to the AGENCY upon request. All above charges must be necessary for the services provided
under this AGREEMENT.Agreement Number:
Page 4 of 14 Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement
Revised 02/01/2021
COML Council Packet 4-9-24, Page 144 of 222
4.Fixed Fee: The Fixed Fee, which represents the CONSULTANT’S profit, is shown in attached Exhibits “D”
and “E” of this AGREEMENT. This fee is based on the Scope of Work defined in this AGREEMENT and
the estimated person-hours required to perform the stated Scope of Work. In the event the CONSULTANT
enters into a supplemental AGREEMENT for additional work, the supplemental AGREEMENT may
include provisions for the added costs and an appropriate additional fee. The Fixed Fee will be prorated
and paid monthly in proportion to the percentage of work completed by the CONSULTANT and reported
in the Monthly Progress Reports accompanying the billings. Any portion of the Fixed Fee earned but not
previously paid in the progress payments will be covered in the final payment, subject to the provisions of
Section IX entitled “Termination of Agreement.”
5.Management Reserve Fund (MRF): The AGENCY may desire to establish MRF to provide the Agreement
Administrator with the flexibility to authorize additional funds to the AGREEMENT for allowable
unforeseen costs, or reimbursing the CONSULTANT for additional work beyond that already defined in
this AGREEMENT. Such authorization(s) shall be in writing and shall not exceed the lesser of $100,000 or
10% of the Total Amount Authorized as shown in the heading of this AGREEMENT. The amount included
for the MRF is shown in the heading of this AGREEMENT. This fund may not be replenished. Any
changes requiring additional costs in excess of the MRF shall be made in accordance with Section XIII,
“Extra Work.”
6.Maximum Total Amount Payable: The Maximum Total Amount Payable by the AGENCY to the
CONSULTANT under this AGREEMENT shall not exceed the amount shown in the heading of this
AGREEMENT. The Maximum Total Amount Payable is comprised of the Total Amount Authorized, and
the MRF. The Maximum Total Amount Payable does not include payment for Extra Work as stipulated in
Section XIII, “Extra Work.” No minimum amount payable is guaranteed under this AGREEMENT.
B. Monthly Progress Payments: The CONSULTANT may submit billings to the AGENCY for reimbursement of
Actual Costs plus the ICR and calculated fee on a monthly basis during the progress of the work. Such billings
shall be in a format approved by the AGENCY and accompanied by the monthly progress reports required under
Section III, “General Requirements” of this AGREEMENT. The billings will be supported by an itemized
listing for each item including Direct (RAW) Labor, Direct Non-Salary, and allowable ICR Costs to which will
be added the prorated Fixed Fee. To provide a means of verifying the billed Direct (RAW) Labor costs for
CONSULTANT employees, the AGENCY may conduct employee interviews. These interviews may consist of
recording the names, titles, Direct (RAW) Labor rates, and present duties of those employees performing work
on the PROJECT at the time of the interview.
C.Final Payment: Final Payment of any balance due the CONSULTANT of the gross amount earned will be made
promptly upon its verification by the AGENCY after the completion of the work under this AGREEMENT,
contingent, if applicable, upon receipt of all PS&E, plans, maps, notes, reports, electronic data and other related
documents which are required to be furnished under this AGREEMENT. Acceptance of such Final Payment by
the CONSULTANT shall constitute a release of all claims for payment, which the CONSULTANT may have
against the AGENCY unless such claims are specifically reserved in writing and transmitted to the AGENCY by
the CONSULTANT prior to its acceptance. Said Final Payment shall not, however, be a bar to any claims that
the AGENCY may have against the CONSULTANT or to any remedies the AGENCY may pursue with respect
to such claims.
The payment of any billing will not constitute agreement as to the appropriateness of any item and at the time
of final audit; all required adjustments will be made and reflected in a final payment. In the event that such
final audit reveals an overpayment to the CONSULTANT, the CONSULTANT will refund such overpayment to
the AGENCY within thirty (30) calendar days of notice of the overpayment. Such refund shall not constitute
a waiver by the CONSULTANT for any claims relating to the validity of a finding by the AGENCY of
overpayment. The CONSULTANT has twenty (20) working days after receipt of the final POST AUDIT to
begin the appeal process to the AGENCY for audit findings.
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D.Inspection of Cost Records: The CONSULTANT and their sub-consultants shall keep available for inspection
by representatives of the AGENCY and the United States, for a period of six (6) years after receipt of final
payment, the cost records and accounts pertaining to this AGREEMENT and all items related to or bearing upon
these records with the following exception: if any litigation, claim or audit arising out of, in connection with,
or related to this AGREEMENT is initiated before the expiration of the six (6) year period, the cost records and
accounts shall be retained until such litigation, claim, or audit involving the records is completed.
An interim or post audit may be performed on this AGREEMENT. The audit, if any, will be performed by the
State Auditor, WSDOT’s Internal Audit Office and/or at the request of the AGENCY’s Project Manager.
VI.Sub-Contracting
The AGENCY permits subcontracts for those items of SERVICES as shown in Exhibit “A” attached hereto and by
this reference made part of this AGREEMENT.
The CONSULTANT shall not subcontract for the performance of any SERVICE under this AGREEMENT without
prior written permission of the AGENCY. No permission for subcontracting shall create, between the AGENCY
and sub-consultant, any contract or any other relationship.
Compensation for this sub-consultant SERVICES shall be based on the cost factors shown on Exhibit “E” attached
hereto and by this reference made part of this AGREEMENT.
The SERVICES of the sub-consultant shall not exceed its maximum amount payable identified in each sub-
consultant cost estimate unless a prior written approval has been issued by the AGENCY.
All reimbursable direct labor, indirect cost rate, direct non-salary costs and fixed fee costs for the sub-consultant
shall be negotiated and substantiated in accordance with section V “Payment Provisions” herein and shall be
memorialized in a final written acknowledgement between the parties.
All subcontracts shall contain all applicable provisions of this AGREEMENT, and the CONSULTANT shall require
each sub-consultant or subcontractor, of any tier, to abide by the terms and conditions of this AGREEMENT. With
respect to sub-consultant payment, the CONSULTANT shall comply with all applicable sections of the STATE’s
Prompt Payment laws as set forth in RCW 39.04.250 and RCW 39.76.011.
The CONSULTANT, sub-recipient, or sub-consultant shall not discriminate on the basis of race, color, national
origin, or sex in the performance of this AGREEMENT. The CONSULTANT shall carry out applicable
requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. Failure by the
CONSULTANT to carry out these requirements is a material breach of this AGREEMENT, which may result in the
termination of this AGREEMENT or such other remedy as the recipient deems appropriate.
VII.Employment and Organizational Conflict of Interest
The CONSULTANT warrants that they have not employed or retained any company or person, other than a bona
fide employee working solely for the CONSULTANT, to solicit or secure this contract, and that it has not paid or
agreed to pay any company or person, other than a bona fide employee working solely for the CONSULTANT, any
fee, commission, percentage, brokerage fee, gift, or any other consideration, contingent upon or resulting from the
award or making of this contract. For breach or violation of this warrant, the AGENCY shall have the right to annul
this AGREEMENT without liability or, in its discretion, to deduct from this AGREEMENT price or consideration
or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee.
Any and all employees of the CONSULTANT or other persons while engaged in the performance of any work
or services required of the CONSULTANT under this AGREEMENT, shall be considered employees of the
CONSULTANT only and not of the AGENCY, and any and all claims that may arise under any Workmen’s
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Compensation Act on behalf of said employees or other persons while so engaged, and any and all claims made
by a third party as a consequence of any act or omission on the part of the CONSULTANT’s employees or other
persons while so engaged on any of the work or services provided to be rendered herein, shall be the sole obligation
and responsibility of the CONSULTANT.
The CONSULTANT shall not engage, on a full- or part-time basis, or other basis, during the period of this
AGREEMENT, any professional or technical personnel who are, or have been, at any time during the period of this
AGREEMENT, in the employ of the United States Department of Transportation or the AGENCY, except regularly
retired employees, without written consent of the public employer of such person if he/she will be working on this
AGREEMENT for the CONSULTANT.
VIII.Nondiscrimination
During the performance of this AGREEMENT, the CONSULTANT, for itself, its assignees, sub-consultants,
subcontractors and successors in interest, agrees to comply with the following laws and regulations:
Title VI of the Civil Rights Act of 1964 • Civil Rights Restoration Act of 1987
(42 U.S.C. Chapter 21 Subchapter V § 2000d (Public Law 100-259)
through 2000d-4a) • American with Disabilities Act of 1990
•Federal-aid Highway Act of 1973 (42 U.S.C. Chapter 126 § 12101 et. seq.)
(23 U.S.C. Chapter 3 § 324)• 23 CFR Part 200
•Rehabilitation Act of 1973 49 CFR Part 21(29 U.S.C. Chapter 16 Subchapter V § 794) 49 CFR Part 26•Age Discrimination Act of 1975 •RCW 49.60.180(42 U.S.C. Chapter 76 § 6101 et. seq.)
In relation to Title VI of the Civil Rights Act of 1964, the CONSULTANT is bound by the provisions of Exhibit “F”
attached hereto and by this reference made part of this AGREEMENT, and shall include the attached Exhibit “F” in
every sub-contract, including procurement of materials and leases of equipment, unless exempt by the Regulations
or directives issued pursuant thereto.
IX.Termination of Agreement
The right is reserved by the AGENCY to terminate this AGREEMENT at any time with or without cause upon ten
(10)days written notice to the CONSULTANT.
In the event this AGREEMENT is terminated by the AGENCY, other than for default on the part of the
CONSULTANT, a final payment shall be made to the CONSULTANT for actual hours charged and any appropriate
fixed fee percentage at the time of termination of this AGREEMENT, plus any direct non-salary costs incurred up to
the time of termination of this AGREEMENT.
No payment shall be made for any SERVICES completed after ten (10) days following receipt by the
CONSULTANT of the notice to terminate. If the accumulated payment made to the CONSULTANT prior to Notice
of Termination exceeds the total amount that would be due when computed as set forth in paragraph two (2) of this
section, then no final payment shall be due and the CONSULTANT shall immediately reimburse the AGENCY for
any excess paid.
If the services of the CONSULTANT are terminated by the AGENCY for default on the part of the CONSULTANT,
the above formula for payment shall not apply.
In the event of a termination for default, the amount to be paid to the CONSULTANT shall be determined by the
AGENCY with consideration given to the actual costs incurred by the CONSULTANT in performing SERVICES
to the date of termination, the amount of SERVICES originally required which was satisfactorily completed to
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date of termination, whether that SERVICE is in a form or a type which is usable to the AGENCY at the time of
termination, the cost to the AGENCY of employing another firm to complete the SERVICES required and the
time which may be required to do so, and other factors which affect the value to the AGENCY of the SERVICES
performed at the time of termination. Under no circumstances shall payment made under this subsection exceed the
amount, which would have been made using the formula set forth in paragraph two (2) of this section.
If it is determined for any reason that the CONSULTANT was not in default or that the CONSULTANT’s failure to
perform is without the CONSULTANT’s or its employee’s fault or negligence, the termination shall be deemed to
be a termination for the convenience of the AGENCY. In such an event, the CONSULTANT would be reimbursed
for actual costs and appropriate fixed fee percentage in accordance with the termination for other than default
clauses listed previously.
The CONSULTANT shall, within 15 days, notify the AGENCY in writing, in the event of the death of any member,
partner, or officer of the CONSULTANT or the death or change of any of the CONSULTANT’s supervisory and/or
other key personnel assigned to the project or disaffiliation of any principally involved CONSULTANT employee.
The CONSULTANT shall also notify the AGENCY, in writing, in the event of the sale or transfer of 50% or
more of the beneficial ownership of the CONSULTANT within 15 days of such sale or transfer occurring. The
CONSULTANT shall continue to be obligated to complete the SERVICES under the terms of this AGREEMENT
unless the AGENCY chooses to terminate this AGREEMENT for convenience or chooses to renegotiate any term(s)
of this AGREEMENT. If termination for convenience occurs, final payment will be made to the CONSULTANT
as set forth in the second and third paragraphs of this section.
Payment for any part of the SERVICES by the AGENCY shall not constitute a waiver by the AGENCY of
any remedies of any type it may have against the CONSULTANT for any breach of this AGREEMENT by the
CONSULTANT, or for failure of the CONSULTANT to perform SERVICES required of it by the AGENCY.
Forbearance of any rights under the AGREEMENT will not constitute waiver of entitlement to exercise those rights
with respect to any future act or omission by the CONSULTANT.
X.Changes of Work
The CONSULTANT shall make such changes and revisions in the completed work of this AGREEMENT as
necessary to correct errors appearing therein, without additional compensation thereof. Should the AGENCY find
it desirable for its own purposes to have previously satisfactorily completed SERVICES or parts thereof changed or
revised, the CONSULTANT shall make such revisions as directed by the AGENCY. This work shall be considered
as Extra Work and will be paid for as herein provided under section XIII “Extra Work.”
XI.Disputes
Any disputed issue not resolved pursuant to the terms of this AGREEMENT shall be submitted in writing within
10 days to the Director of Public Works or AGENCY Engineer, whose decision in the matter shall be final and
binding on the parties of this AGREEMENT; provided however, that if an action is brought challenging the
Director of Public Works or AGENCY Engineer’s decision, that decision shall be subject to judicial review. If the
parties to this AGREEMENT mutually agree, disputes concerning alleged design errors will be conducted under
the procedures found in Exhibit “J”. In the event that either party deem it necessary to institute legal action or
proceeding to enforce any right or obligation under this AGREEMENT, this action shall be initiated in the Superior
Court of the State of Washington, situated in the county in which the AGENCY is located. The parties hereto
agree that all questions shall be resolved by application of Washington law and that the parties have the right of
appeal from such decisions of the Superior Court in accordance with the laws of the State of Washington. The
CONSULTANT hereby consents to the personal jurisdiction of the Superior Court of the State of Washington,
situated in the county in which the AGENCY is located.
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XII.Legal Relations
The CONSULTANT, any sub-consultants, and the AGENCY shall comply with all Federal, State, and local laws,
rules, codes, regulations and all AGENCY policies and directives, applicable to the work to be performed under this
AGREEMENT. This AGREEMENT shall be interpreted and construed in accordance with the laws of the State of
Washington.
The CONSULTANT shall defend, indemnify, and hold The State of Washington (STATE) and the AGENCY and
their officers and employees harmless from all claims, demands, or suits at law or equity arising in whole or in part
from the negligence of, or the breach of any obligation under this AGREEMENT by, the CONSULTANT or the
CONSULTANT’s agents, employees, sub consultants, subcontractors or vendors, of any tier, or any other persons
for whom the CONSULTANT may be legally liable; provided that nothing herein shall require a CONSULTANT
to defend or indemnify the STATE and the AGENCY and their officers and employees against and hold harmless
the STATE and the AGENCY and their officers and employees from claims, demands or suits based solely upon
the negligence of, or breach of any obligation under this AGREEMENT by the STATE and the AGENCY, their
agents, officers, employees, sub-consultants, subcontractors or vendors, of any tier, or any other persons for whom
the STATE and/or the AGENCY may be legally liable; and provided further that if the claims or suits are caused
by or result from the concurrent negligence of (a) the CONSULTANT or the CONSULTANT’s agents, employees,
sub-consultants, subcontractors or vendors, of any tier, or any other persons for whom the CONSULTANT is legally
liable, and (b) the STATE and/or AGENCY, their agents, officers, employees, sub-consultants, subcontractors and or
vendors, of any tier, or any other persons for whom the STATE and or AGENCY may be legally liable, the defense
and indemnity obligation shall be valid and enforceable only to the extent of the CONSULTANT’s negligence or
the negligence of the CONSULTANT’s agents, employees, sub-consultants, subcontractors or vendors, of any tier,
or any other persons for whom the CONSULTANT may be legally liable. This provision shall be included in any
AGREEMENT between CONSULTANT and any sub-consultant, subcontractor and vendor, of any tier.
The CONSULTANT shall also defend, indemnify, and hold the STATE and the AGENCY and their officers
and employees harmless from all claims, demands, or suits at law or equity arising in whole or in part from the
alleged patent or copyright infringement or other allegedly improper appropriation or use of trade secrets, patents,
proprietary information, know-how, copyright rights or inventions by the CONSULTANT or the CONSULTANT’s
agents, employees, sub-consultants, subcontractors or vendors, of any tier, or any other persons for whom the
CONSULTANT may be legally liable, in performance of the Work under this AGREEMENT or arising out of any
use in connection with the AGREEMENT of methods, processes, designs, information or other items furnished or
communicated to STATE and/or the AGENCY, their agents, officers and employees pursuant to the AGREEMENT;
provided that this indemnity shall not apply to any alleged patent or copyright infringement or other allegedly
improper appropriation or use of trade secrets, patents, proprietary information, know-how, copyright rights or
inventions resulting from STATE and/or AGENCY’s, their agents’, officers’ and employees’ failure to comply
with specific written instructions regarding use provided to STATE and/or AGENCY, their agents, officers and
employees by the CONSULTANT, its agents, employees, sub-consultants, subcontractors or vendors, of any tier, or
any other persons for whom the CONSULTANT may be legally liable.
The CONSULTANT’s relation to the AGENCY shall be at all times as an independent contractor.
Notwithstanding any determination by the Executive Ethics Board or other tribunal, the AGENCY may, in its sole
discretion, by written notice to the CONSULTANT terminate this AGREEMENT if it is found after due notice and
examination by the AGENCY that there is a violation of the Ethics in Public Service Act, Chapter 42.52 RCW; or
any similar statute involving the CONSULTANT in the procurement of, or performance under, this AGREEMENT.
The CONSULTANT specifically assumes potential liability for actions brought by the CONSULTANT’s own
employees or its agents against the STATE and /or the AGENCY and, solely for the purpose of this indemnification
and defense, the CONSULTANT specifically waives any immunity under the state industrial insurance law, Title 51
RCW. This waiver has been mutually negotiated between the Parties.
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Unless otherwise specified in this AGREEMENT, the AGENCY shall be responsible for administration of
construction contracts, if any, on the project. Subject to the processing of a new sole source, or an acceptable
supplemental AGREEMENT, the CONSULTANT shall provide On-Call assistance to the AGENCY during contract
administration. By providing such assistance, the CONSULTANT shall assume no responsibility for: proper
construction techniques, job site safety, or any construction contractor’s failure to perform its work in accordance
with the contract documents.
The CONSULTANT shall obtain and keep in force during the terms of this AGREEMENT, or as otherwise
required, the following insurance with companies or through sources approved by the State Insurance
Commissioner pursuant to Title 48 RCW.
Insurance Coverage
A.Worker’s compensation and employer’s liability insurance as required by the STATE.
B.Commercial general liability insurance written under ISO Form CG 00 01 12 04 or its equivalent with minimum
limits of one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000.00) in the
aggregate for each policy period.
C.Business auto liability insurance written under ISO Form CG 00 01 10 01 or equivalent providing coverage for
any “Auto” (Symbol 1) used in an amount not less than a one million dollar ($1,000,000.00) combined single
limit for each occurrence.
Excepting the Worker’s Compensation Insurance and any Professional Liability Insurance, the STATE and
AGENCY, their officers, employees, and agents will be named on all policies of CONSULTANT and any sub-
consultant and/or subcontractor as an additional insured (the “AIs”), with no restrictions or limitations concerning
products and completed operations coverage. This coverage shall be primary coverage and non-contributory and
any coverage maintained by the AIs shall be excess over, and shall not contribute with, the additional insured
coverage required hereunder. The CONSULTANT’s and the sub-consultant’s and/or subcontractor’s insurer shall
waive any and all rights of subrogation against the AIs. The CONSULTANT shall furnish the AGENCY with
verification of insurance and endorsements required by this AGREEMENT. The AGENCY reserves the right to
require complete, certified copies of all required insurance policies at any time.
All insurance shall be obtained from an insurance company authorized to do business in the State of Washington.
The CONSULTANT shall submit a verification of insurance as outlined above within fourteen (14) days of the
execution of this AGREEMENT to:
Name:
Agency:
Address:
City: State: Zip:
Email:
Phone:
Facsimile:
No cancellation of the foregoing policies shall be effective without thirty (30) days prior notice to the AGENCY.
The CONSULTANT’s professional liability to the AGENCY, including that which may arise in reference to
section IX “Termination of Agreement” of this AGREEMENT, shall be limited to the accumulative amount of the
authorized AGREEMENT amount or one million dollars ($1,000,000.00), whichever is greater, unless the limit of
liability is increased by the AGENCY pursuant to Exhibit H. In no case shall the CONSULTANT’s professional
liability to third parties be limited in any way.
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The parties enter into this AGREEMENT for the sole benefit of the parties, and to the exclusion of any third party,
and no third party beneficiary is intended or created by the execution of this AGREEMENT.
The AGENCY will pay no progress payments under section V “Payment Provisions” until the CONSULTANT has
fully complied with this section. This remedy is not exclusive; and the AGENCY may take such other action as is
available to it under other provisions of this AGREEMENT, or otherwise in law.
XIII.Extra Work
A.The AGENCY may at any time, by written order, make changes within the general scope of this AGREEMENT
in the SERVICES to be performed.
B.If any such change causes an increase or decrease in the estimated cost of, or the time required for, performance
of any part of the SERVICES under this AGREEMENT, whether or not changed by the order, or otherwise
affects any other terms and conditions of this AGREEMENT, the AGENCY shall make an equitable adjustment
in the: (1) maximum amount payable; (2) delivery or completion schedule, or both; and (3) other affected terms
and shall modify this AGREEMENT accordingly.
C.The CONSULTANT must submit any “request for equitable adjustment,” hereafter referred to as “CLAIM,”
under this clause within thirty (30) days from the date of receipt of the written order. However, if the AGENCY
decides that the facts justify it, the AGENCY may receive and act upon a CLAIM submitted before final
payment of this AGREEMENT.
D.Failure to agree to any adjustment shall be a dispute under the section XI “Disputes” clause. However, nothing
in this clause shall excuse the CONSULTANT from proceeding with the AGREEMENT as changed.
E.Notwithstanding the terms and conditions of paragraphs (A.) and (B.) above, the maximum amount payable for
this AGREEMENT, shall not be increased or considered to be increased except by specific written supplement
to this AGREEMENT.
XIV.Endorsement of Plans
If applicable, the CONSULTANT shall place their endorsement on all plans, estimates, or any other engineering
data furnished by them.
XV.Federal Review
The Federal Highway Administration shall have the right to participate in the review or examination of the
SERVICES in progress.
XVI.Certification of the Consultant and the Agency
Attached hereto as Exhibit “G-1(a and b)” are the Certifications of the CONSULTANT and the AGENCY, Exhibit
“G-2” Certification Regarding Debarment, Suspension and Other Responsibility Matters - Primary Covered
Transactions, Exhibit “G-3” Certification Regarding the Restrictions of the Use of Federal Funds for Lobbying
and Exhibit “G-4” Certificate of Current Cost or Pricing Data. Exhibit “G-3” is required only in AGREEMENT’s
over one hundred thousand dollars ($100,000.00) and Exhibit “G-4” is required only in AGREEMENT’s over
five hundred thousand dollars ($500,000.00.) These Exhibits must be executed by the CONSULTANT, and
submitted with the master AGREEMENT, and returned to the AGENCY at the address listed in section III “General
Requirements” prior to its performance of any SERVICES under this AGREEMENT.
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XVII.Complete Agreement
This document and referenced attachments contain all covenants, stipulations, and provisions agreed upon by the
parties. No agent, or representative of either party has authority to make, and the parties shall not be bound by or
be liable for, any statement, representation, promise or agreement not set forth herein. No changes, amendments, or
modifications of the terms hereof shall be valid unless reduced to writing and signed by the parties as a supplement
to this AGREEMENT.
XVIII.Execution and Acceptance
This AGREEMENT may be simultaneously executed in several counterparts, each of which shall be deemed
to be an original having identical legal effect. The CONSULTANT does hereby ratify and adopt all statements,
representations, warranties, covenants, and AGREEMENT’s contained in the proposal, and the supporting material
submitted by the CONSULTANT, and does hereby accept this AGREEMENT and agrees to all of the terms and
conditions thereof.
XIX.Protection of Confidential Information
The CONSULTANT acknowledges that some of the material and information that may come into its possession
or knowledge in connection with this AGREEMENT or its performance may consist of information that is exempt
from disclosure to the public or other unauthorized persons under either chapter 42.56 RCW or other local, state
or federal statutes (“State’s Confidential Information”). The “State’s Confidential Information” includes, but is
not limited to, names, addresses, Social Security numbers, e-mail addresses, telephone numbers, financial profiles,
credit card information, driver’s license numbers, medical data, law enforcement records (or any other information
identifiable to an individual), STATE and AGENCY source code or object code, STATE and AGENCY security
data, non-public Specifications, STATE and AGENCY non-publicly available data, proprietary software, State
security data, or information which may jeopardize any part of the project that relates to any of these types of
information. The CONSULTANT agrees to hold the State’s Confidential Information in strictest confidence
and not to make use of the State’s Confidential Information for any purpose other than the performance of this
AGREEMENT, to release it only to authorized employees, sub-consultants or subcontractors requiring such
information for the purposes of carrying out this AGREEMENT, and not to release, divulge, publish, transfer,
sell, disclose, or otherwise make it known to any other party without the AGENCY’s express written consent
or as provided by law. The CONSULTANT agrees to release such information or material only to employees,
sub-consultants or subcontractors who have signed a nondisclosure AGREEMENT, the terms of which have
been previously approved by the AGENCY. The CONSULTANT agrees to implement physical, electronic, and
managerial safeguards to prevent unauthorized access to the State’s Confidential Information.
Immediately upon expiration or termination of this AGREEMENT, the CONSULTANT shall, at the AGENCY’s
option: (i) certify to the AGENCY that the CONSULTANT has destroyed all of the State’s Confidential
Information; or (ii) returned all of the State’s Confidential Information to the AGENCY; or (iii) take whatever other
steps the AGENCY requires of the CONSULTANT to protect the State’s Confidential Information.
As required under Executive Order 00-03, the CONSULTANT shall maintain a log documenting the following:
the State’s Confidential Information received in the performance of this AGREEMENT; the purpose(s) for which
the State’s Confidential Information was received; who received, maintained and used the State’s Confidential
Information; and the final disposition of the State’s Confidential Information. The CONSULTANT’s records shall
be subject to inspection, review, or audit upon reasonable notice from the AGENCY.
The AGENCY reserves the right to monitor, audit, or investigate the use of the State’s Confidential Information
collected, used, or acquired by the CONSULTANT through this AGREEMENT. The monitoring, auditing, or
investigating may include, but is not limited to, salting databases.
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Violation of this section by the CONSULTANT or its sub-consultants or subcontractors may result in termination of
this AGREEMENT and demand for return of all State’s Confidential Information, monetary damages, or penalties.
It is understood and acknowledged that the CONSULTANT may provide the AGENCY with information which
is proprietary and/or confidential during the term of this AGREEMENT. The parties agree to maintain the
confidentiality of such information during the term of this AGREEMENT and afterwards. All materials containing
such proprietary and/or confidential information shall be clearly identified and marked as “Confidential” and shall
be returned to the disclosing party at the conclusion of the SERVICES under this AGREEMENT.
The CONSULTANT shall provide the AGENCY with a list of all information and materials it considers confidential
and/or proprietary in nature: (a) at the commencement of the term of this AGREEMENT; or (b) as soon as such
confidential or proprietary material is developed. “Proprietary and/or confidential information” is not meant to
include any information which, at the time of its disclosure: (i) is already known to the other party; (ii) is rightfully
disclosed to one of the parties by a third party that is not acting as an agent or representative for the other party;
(iii)is independently developed by or for the other party; (iv) is publicly known; or (v) is generally utilized by
unaffiliated third parties engaged in the same business or businesses as the CONSULTANT.
The parties also acknowledge that the AGENCY is subject to Washington State and federal public disclosure
laws. As such, the AGENCY shall maintain the confidentiality of all such information marked proprietary and/
or confidential or otherwise exempt, unless such disclosure is required under applicable state or federal law. If a
public disclosure request is made to view materials identified as “Proprietary and/or confidential information” or
otherwise exempt information, the AGENCY will notify the CONSULTANT of the request and of the date that such
records will be released to the requester unless the CONSULTANT obtains a court order from a court of competent
jurisdiction enjoining that disclosure. If the CONSULTANT fails to obtain the court order enjoining disclosure, the
AGENCY will release the requested information on the date specified.
The CONSULTANT agrees to notify the sub-consultant of any AGENCY communication regarding disclosure that
may include a sub-consultant’s proprietary and/or confidential information. The CONSULTANT notification to the
sub-consultant will include the date that such records will be released by the AGENCY to the requester and state
that unless the sub-consultant obtains a court order from a court of competent jurisdiction enjoining that disclosure
the AGENCY will release the requested information. If the CONSULTANT and/or sub-consultant fail to obtain
a court order or other judicial relief enjoining the AGENCY by the release date, the CONSULTANT shall waive
and release and shall hold harmless and indemnify the AGENCY from all claims of actual or alleged damages,
liabilities, or costs associated with the AGENCY’s said disclosure of sub-consultants’ information.
XX.Records Maintenance
During the progress of the Work and SERVICES provided hereunder and for a period of not less than six (6) years
from the date of final payment to the CONSULTANT, the CONSULTANT shall keep, retain and maintain all
“documents” pertaining to the SERVICES provided pursuant to this AGREEMENT. Copies of all “documents”
pertaining to the SERVICES provided hereunder shall be made available for review at the CONSULTANT’s place
of business during normal working hours. If any litigation, claim or audit is commenced, the CONSULTANT shall
cooperate with AGENCY and assist in the production of all such documents. “Documents” shall be retained until
all litigation, claims or audit findings have been resolved even though such litigation, claim or audit continues past
the six (6) year retention period.
For purposes of this AGREEMENT, “documents” means every writing or record of every type and description,
including electronically stored information (“ESI”), that is in the possession, control, or custody of the
CONSULTANT, including, without limitation, any and all correspondences, contracts, AGREEMENT ‘s,
appraisals, plans, designs, data, surveys, maps, spreadsheets, memoranda, stenographic or handwritten
notes, reports, records, telegrams, schedules, diaries, notebooks, logbooks, invoices, accounting records,
work sheets, charts, notes, drafts, scribblings, recordings, visual displays, photographs, minutes of meetings,
Agreement Number:
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Revised 02/01/2021
COML Council Packet 4-9-24, Page 153 of 222
tabulations, computations, summaries, inventories, and writings regarding conferences, conversations or
telephone conversations, and any and all other taped, recorded, written, printed or typed matters of any kind or
description; every copy of the foregoing whether or not the original is in the possession, custody, or control of the
CONSULTANT, and every copy of any of the foregoing, whether or not such copy is a copy identical to an original,
or whether or not such copy contains any commentary or notation whatsoever that does not appear on the original.
For purposes of this AGREEMENT, “ESI” means any and all computer data or electronic recorded media of any
kind, including “Native Files”, that are stored in any medium from which it can be retrieved and examined, either
directly or after translation into a reasonably useable form. ESI may include information and/or documentation
stored in various software programs such as: Email, Outlook, Word, Excel, Access, Publisher, PowerPoint, Adobe
Acrobat, SQL databases, or any other software or electronic communication programs or databases that the
CONSULTANT may use in the performance of its operations. ESI may be located on network servers, backup
tapes, smart phones, thumb drives, CDs, DVDs, floppy disks, work computers, cell phones, laptops or any other
electronic device that CONSULTANT uses in the performance of its Work or SERVICES hereunder, including any
personal devices used by the CONSULTANT or any sub-consultant at home.
“Native files” are a subset of ESI and refer to the electronic format of the application in which such ESI is normally
created, viewed, and /or modified.
The CONSULTANT shall include this section XX “Records Maintenance” in every subcontract it enters into in
relation to this AGREEMENT and bind the sub-consultant to its terms, unless expressly agreed to otherwise in
writing by the AGENCY prior to the execution of such subcontract.
In witness whereof, the parties hereto have executed this AGREEMENT as of the day and year shown in the
“Execution Date” box on page one (1) of this AGREEMENT.
Signature Date
Signature Date
Any modification, change, or reformation of this AGREEMENT shall require approval as to form by the Office of the Attorney General.
Agreement Number:
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Revised 02/01/2021 COML Council Packet 4-9-24, Page 154 of 222
Exhibit A
Scope of Work
Project No.
Agreement Number:
Exhibit A - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 1 COML Council Packet 4-9-24, Page 155 of 222
SR17 AND STRATFORD ROAD PROJECT: PLANNING PHASE EXHIBIT A. SCOPE OF WORKThe Toole Design team (CONSULTANT) will perform the following scope of work as part of the SR17 and Stratford Road Project (PROJECT) for the City of Moses Lake (CITY). PROJECT DESCRIPTION The vicinity of the SR17 and Stratford Road interchange (Figure 1) lacks safe and adequate accommodations for non-motorized travelers. Pedestrians and cyclists are vulnerable to motorized traffic, especially due to unmarked or undermarked crosswalks, unreliable sidewalks presence, lack of bike lanes, poor illumination, and lack of public transportation. This segment and its surrounding area/communities have a high rate of socio-economic vulnerabilities, poverty, and high transportation expense. These factors in addition to the poor condition of existing accommodations for non-motorized travel in the area mean that those without access to a car will have to walk or cycle through areas that put them at risk or perceived risk. The City of Moses Lake is interested in understanding and developing bike and pedestrian access and mobility throughout this part of the city, focusing on active transportation needs. This project will plan and design active transportation improvements in the project area and perform a robust community engagement effort. The project will be scoped in phases. This initial phase will include analyses, planning, and community engagement. The result of this first phase will be a prioritized list of projects, some of which will be advanced into conceptual design as part of Phase 2 and then into preliminary design in Phase 3. When this scope of work refers to the secondary project area it is inclusive of the primary project area. PHASING This project shall be completed in phases throughout the life of the project. Future phases will be scoped later. Figure 1: Project Vicinity COML Council Packet 4-9-24, Page 156 of 222
SCOPE OF WORK 3/31/2024 | 1 TOOLE DESIGN Phase 1. Planning Visioning and planning, conflict analyses, route directness, level of traffic stress, outreach and engagement, grant assistance Phase 2. Conceptual Design Development Conceptual design and preliminary right-of-way and environmental assessment of primary project and select secondary projects identified in Phase 1 Phase 3. Preliminary Design Plans, specifications, and estimates (PS&E) for primary and secondary projects identified in Phase 2 through 30% or 90% design Phase 4. Final Design (Optional) Final design of one or more projects identified in Phase 3 to advertisement and bidding Phase 5. Construction Support (Optional) Construction support for projects identified in Phase 4 SCHEDULE Phases 1 is expected to be approximately 6 months in length and Phases 2 and 3 of the project is anticipated to be approximately 12 months for a total of 18 months. As project and design needs are identified, the schedule will be updated as needed. A detailed project schedule will be developed upon Notice to Proceed. ROLES AND RESPONSIBILITIES CITY Responsibilities 1. The CITY Project Manager will provide, or direct the CONSULTANT to obtain, background dataand information as available and as requested by the CONSULTANT.2. The CITY will maintain the lead role on the project, coordinating with private and governmentalagencies with the assistance of the CONSULTANT.3. The CITY will lead communication with the public regarding the project, including uploadingcontent and maintenance for the project web page.4. The CITY will compile and conform all comments from reviewers of submittals and providecomments to the CONSULTANT on one marked up set of the submittal and/or one set of writtencomments on a comment response form (format provided by the CONSULTANT).5. The CITY will take the lead on coordinating access and rights of entry for site visits.CITY-Furnished Services, Information, and Items The CITY will make available or direct the CONSULTANT to the following project resources as needed to complete the project documents: •Any relevant public engagement to date.•Plans and project schedules for other projects in the project area.•Moses Lake standard plans and standard specifications.•GIS information for the project area.COML Council Packet 4-9-24, Page 157 of 222
SCOPE OF WORK 3/31/2024 | 2 TOOLE DESIGN •Access to existing record drawing information in the project and adjacent areas, as available.•Motor vehicle traffic volumes and turning movement counts for the project area.•Any existing critical areas data, delineations, mapping, or other available documentation.CONSULTANT Responsibilities The Consultant team is made up of the following firms; the responsibilities for Phases 1, 2 and 3 of each firm are summarized below and called out more specifically in the scope of work. Toole Design will provide project management, and lead the visioning, planning and analyses, and grant funding in Phase I and lead conceptual design in Phase II. Toole Design will lead the development of 30% through 90% design documents in Phase 3. Perteet will support pre-design in Phase 1 with WSDOT coordination, grant funding support, and participation in visioning events. In Phase 2 Perteet will support conceptual design through cost estimating, traffic analyses, and preliminary civil and traffic design and environmental assessments. In Phase 3 Perteet will support preliminary design through civil, utility and traffic design and continued environmental support. Firm Foundations will lead public engagement through all phases of the project. Commonstreet Consulting will lead preliminary right-of-way evaluation for all phases of the project. Fehr & Peers will lead travel demand modeling for Phases 1 and 2 of the project. Oversite will provide surveying services for Phases 2 and 3 of the project. HDR will provide structural engineering for all phases of the project. ASSUMPTIONS The following assumptions have been made in developing this Scope of Work and Budget. Additional detail specific to individual tasks has been included in the task descriptions. 1. The level of effort is specified in the scope of work and the budgeted labor and expenses areindicated in Exhibit B. The budget may be transferred between discipline tasks at the discretionof the CITY Project Manager, provided the total contracted amount is not exceeded. TheCONSULTANT will have the flexibility to manage budget within a given discipline on a subtasklevel. Services not included in this scope of services are specifically excluded from the scope ofthe CONSULTANT’s services. The CONSULTANT assumes no responsibility to perform anyservices not specifically listed in the scope of services. For the purposes of estimating thebudget for this scope of work, the following is assumed by the CONSULTANT:a. Drafting standards will conform to CITY Engineering Standards as well as prior projects;where standards are not available, the CONSULTANT will use CONSULTANT CADDstandards; plans will be prepared using 2023 AutoCAD Civil 3D2. For each submittal, the CONSULTANT will conduct a comment resolution meeting with theCITY Project Manager. The following submittal will include responses to comments withincorporation of the comments into the plans.COML Council Packet 4-9-24, Page 158 of 222
SCOPE OF WORK 3/31/2024 | 3 TOOLE DESIGN GENERAL SCOPE OF SERVICES/SCOPE OF WORK This Scope of Services describes the work elements to be accomplished by the Consultant as summarized under each Task. This Scope of Services for Phase I is defined in the tasks below. Detailed scope for future phases will be developed as part of supplements to this contract. TASK 1: Project Management 4 TASK 2: Community Engagement 5 TASK 3: Visioning 6 TASK 4: WSDOT and Partner Coordination 11 TASK 5: Existing Conditions Analyses and Policy Review 12 TASK 6: Network Analyses, Project Identification, and Prioritization 14 TASK 7: Phase 1 Project Report 15 TASK 8: Grant and Secondary Area Project Support 16 COML Council Packet 4-9-24, Page 159 of 222
SCOPE OF WORK 3/31/2024 | 4 TOOLE DESIGN SCOPE OF SERVICES TASK 1: PROJECT MANAGEMENT This task includes project management and coordination for the project, including a kickoff meeting, for Phase 1. Task 1.1: Coordination and Management The Consultant will regularly meet with agency staff about project progress, project issues and schedule. Meetings will take place via Teams and will occur throughout the project with a frequency of every two (2) weeks, based on project needs, and will last up to one (1) hour per meeting. The Consultant will prepare meeting agendas and minutes. •Up to thirteen (13) meetings attended by the Consultant with up to two (2) staff from theConsultant team.•Subconsultant attendance at meetings related to the project will be included under thoseindividual tasks.•The Consultant will prepare agendas and meeting notes/action items and distribute toattendees.Task 1.2: Kickoff Meeting Consultant Project Manager (Toole Design) will prepare for, facilitate, and document a project kickoff meeting with the City’s Project Manager and key consultant team members. Prior to the kickoff meeting, consultant Project Manager will prepare a preliminary project management plan (PMP) which will include a project communications plan, schedule, and quality control procedures for deliverable review at a minimum. At the kickoff, the team will review the following topics: •Confirm the project scope and schedule•Discuss project phasing•Establish the ultimate objectives that must be accomplished through this work•Identify opportunities and challenges that the project will face•Identify potential meeting dates•Determine the availability of GIS data resources and other existing information•Discuss the City’s preferred communication and data transfer protocols, including file types andsizes, email, and phone for project communication; and the process for requesting additionalinformation•Deliverable review expectations•Quality assurance/quality control (QA/QC).Task 1.3: Progress Reporting Toole Design will submit monthly progress reports throughout the project. Each report will include task accomplishments, the status of deliverables, and expected upcoming activities. COML Council Packet 4-9-24, Page 160 of 222
SCOPE OF WORK 3/31/2024 | 5 TOOLE DESIGN Task 1.4: Project Schedule, Budget and Team Management The Consultant will develop an overall project schedule, which will include a detailed schedule by task, for Phases 1, 2 and 3 of the project. The Consultant will prepare a draft and final schedule for the City to review, and then the Consultant will prepare two (2) schedule updates as Phase 1 of the project progresses, when requested by the City. The Consultant will also manage the Consultant budgets, monitor staff and subconsultants, manage change and prepare amendments, and monitor work progress under this work element. Task 1 Deliverables
•Kickoff meeting agenda and meeting notes•Project schedule (Microsoft Project format) and up to two updates•Project meeting agendas and notes for up to 13 meetings•Monthly progress reports and invoicesTask 1 Assumptions
•The contract duration for Phases 1 shall be no longer than 6 months. This task will besupplemented with future phases.•Project kickoff meeting will be held virtually.•Project meeting will be held virtually.•Meetings between Consultants and any in-person meetings will be conducted under otherscope tasks.TASK 2: COMMUNITY ENGAGEMENT Task 2.1: Community Engagement Plan A Community Engagement Plan (CEP) will serve as a guiding document for engaging those who access, or would access, the project area. The CEP will allow for an iterative process that adapts to stakeholder needs and centers community members as experts in their own lived experiences. To create cohesive engagement materials with consistent messaging and graphics, the CEP will be accompanied by a project identity and branding strategy. All project outreach materials used in communications with the public will reflect this identity and branding strategy and will offer a consistent look and feel the stakeholders can have a familiarity with. Specifics will be identified in the CEP such as focus group meetings, survey development, community events, etc. Task 2.1.1: Outreach Data Analyses Incorporating prior and current outreach efforts related to multimodal planning, projects, studies, and efforts in Moses Lake and, most specifically, in the project area. Collected information will provide a foundation for an enhanced, non-duplicated outreach strategy by honoring previously collected feedback and reducing planning fatigue. Specific documents for review with associated feedback data as available include: •Complete Streets Policy•Trails Planning Team Project Priorities•Walkability Action Institute Action PlanCOML Council Packet 4-9-24, Page 161 of 222
SCOPE OF WORK 3/31/2024 | 6 TOOLE DESIGN Task 2.1.2: Stakeholder Engagement Map Offering a visual of the stakeholder network and their respective level of engagement which identifies when, where, and how they will be included in the process. It will coordinate sectors (transportation, economics, education, recreation, etc.), organizations (City of Moses Lake, WSDOT, Chamber of Commerce, School District, Grant Transit Authority, etc.), and positions (Community Organizers, Elected Officials, etc.). The map will also identify priority demographics that often have barriers towards access including language, technological, economic, mobility, and geographic. Task 2.1.3: Establish Messaging Timeline Building off of Task 2.1.2, the timeline will incorporate the entire project timeline to establish the bilingual (English and Spanish) messaging that will be provided to the stakeholders at the appropriate intervals to ensure awareness, comprehension, opportunities for feedback, and follow-up for the next steps to close out each Phase. Establishing the timeline will also include working with existing events, meetings, and complementary project timelines such as community celebrations, council meetings, and community projects incorporating outreach. Task 2.1.4: Identify Media Channels Identifying channels both builds on Task 2.1.3 and informs it. Working with various media outlets (radio, tv, podcasts, etc.), the team will build an effective digital campaign complemented by outreach effort conducted in-person and collateral materials. Task 2.1.5: Finalize Engagement Schedule Working with the entire team, City staff, and media channels, an “official” (while remaining flexible) schedule will be finalized to ensure timely, effective, and efficient outreach is conducted in ways that are meaningful to the community and measurable to for the project. Task 2.1 Deliverables
•Community Engagement Plan (draft and final in Word format)Task 2.1 Assumptions
•The City will provide data related to City-developed plans/policies as availableTask 2.2: Collect Stakeholder Feedback This process will include opportunities for digital and in-person connections and will either be organic (planned and produced by the team) or complementary (partnering with an existing event). All efforts will be made available in English and Spanish with necessary content or materials being translated/interpreted as needed during an event. This work will be designed to inform and/or complement Task 3: Visioning. Task 2.2.1: Develop Outreach Content Informed by Task 2.1 and in alignment with established project identity and branding, this task will take into consideration the implications of both digital and physical campaigns such as levels of technological proficiency and accessibility; respectively. Content will be designed for ease of translation/interpretation while not losing the integrity of technical components. COML Council Packet 4-9-24, Page 162 of 222
SCOPE OF WORK 3/31/2024 | 7 TOOLE DESIGN Task 2.2.2: Connect with “Level 1” Stakeholders Beginning direct engagement, the Level 1 stakeholders are those with the ability to approve/deny recommendations and will be communicated with during ideation and alongside any significant analysis considerations, design changes, and timeline milestones. Connecting prior to launching a campaign is important for consistent and informed messaging by the team. City-led councils, boards, and commissions are included here. Task 2.2.3: Content Translation/Interpretation Serving as the initial translation/interpretation of all digital and collateral content. Task 2.2.4: Launch Digital Campaign Connecting all expected engagement efforts, a digital campaign is complementary to all other modes of communication. The launch includes content supporting the survey, cohesive messaging, and outreach partners (non-profits, transportation agencies, businesses, etc.). Task 2.2.5: Connect with “Level 2 and 3” Stakeholders Continuing direct engagement that started with Task 2.2.2, the Level 2 and 3 stakeholders are those with the ability to advance/delay or advocate/disrupt the effectiveness of the team or City’s efforts; respectively. Level 2 stakeholders will help define outreach direction by emphasizing project benefits, identifying potential concerns, and providing comprehensive messaging into the general community (Level 3s). Level 3 stakeholders will be included during the general public engagement with the potential to support increasing capacity for educating and connecting with the public around questions, understanding, and clarification. They will be helpful in expanding feedback loops with more stakeholders. Task 2.2.6: Monitoring of Outreach Effectiveness Effective outreach is crucial and so ongoing monitoring of results will inform any necessary shifts in approach, timeline, or audience engagement. It will be consistent communication within our team followed by connections with Level 1 Stakeholders if emphasis on a certain concept, elements, area, audience, or topic is needed. Task 2.2.7: Translation of Feedback Serving as the final translation/interpretation of stakeholder feedback provided in Spanish. Task 2.2.8: Engagement Summary Upon conclusion of stakeholder and public engagement efforts, data will be summarized in a Final Report. This will include a recap of the process and outcome results such as: • Metrics for measurable outreach elements (comments, attendance, responses, etc.) • Materials used for both digital and in-person purposes • Photos or videos • CEP Assessment indicating effectiveness of approach. Task 2.2 Deliverables
• Project Webpage content, draft and revised, with up to 4 updates COML Council Packet 4-9-24, Page 163 of 222
SCOPE OF WORK 3/31/2024 | 8 TOOLE DESIGN •Focus group meeting scripts and notes (draft and final in Word format)•Online Survey (outline, draft questions, revised questions, beta test, final survey, results report(final available Word, access to the platform, and results in Excel and PDF)•Up to two 2 Community and neighborhood events•Meeting Content including:•Agenda, Materials, Purpose, Expected Outcomes, and Minutes•Supported by Spanish translation/interpretation•Up to three (3) City Council or other standard City meeting•Meeting Content Including:•Agenda, Materials, Purpose, Expected Outcomes, and Minutes•Feedback Report (draft and final in Word and PDF)Task 2.2: Assumptions
•The City will host the webpage and revise the content with updates provided by the Consultant.Webpage content will include narrative, project schedule, photos, and a limited number ofproject graphics (diagrams or cross-sections)•Focus group meetings are assumed to be in-person and conducted by the Consultant withparticipation by City staff•Consultant uses their preferred survey platform with costs included as a direct expense•A budget of $1,500 has been included for communications which includes radio ads, boostingsocial media posts, and printing expenses.Task 2.3: Charrette Preparation Prior to the workshops, the Consultant will prepare base maps, using existing GIS data and/or aerial images. The Consultant team will also review any readily available previous studies, information, plans, and materials as gathered earlier to establish a basic understanding of the study area. The Consultant will work with the City to identify who should participate in the charrette. The City will schedule the meetings, secure locations, and send invitations created by the Consultant. Task 2.4: Visioning Charrette The Consultant team will host a four-day, in-person visioning charrette aimed at identifying the vision for the greater secondary project area. The charrette process will be comprised of four sections: discovery, discussion, design, and documentation. Discovery will be focused on existing conditions and learning about community issues, opportunities, and constraints. Findings from discovery will lead to discussions with stakeholders and City staff. Findings from these discussions will inform design ideas and concepts that can work well for the community. Documentation of the existing conditions, project process, and resulting recommendations becomes the foundation of the concepts and guidelines. The visioning charrette will build upon the community priorities, including but not limited to those outlined in the Comprehensive Plan: •Interest in Downtown businesses and parks orienting towards the lake as a key feature of theDowntown.COML Council Packet 4-9-24, Page 164 of 222
SCOPE OF WORK 3/31/2024 | 9 TOOLE DESIGN •Smart investment to improve lake water quality and protect aquifer.•More vibrant Downtown and investment in businesses.•Better opportunities for safe, healthy, engaging youth activities, such as arts and sports.•Better amenities, especially restaurants.•Build a tourism economy around the lake.•Improve transportation system with new bridge across the lake.•Better community aesthetics.•Enhance Patton and Broadway as a community gateways.•Keeping Moses Lake’s small town feel.•Jobs for community members, particularly young people who want to stay in the community.Education will be part of each discussion to ensure that all participants in the process understand the ultimate goal. At the conclusion of this visioning charrette, the Consultant will have a solid foundation to develop alternatives for the project’s secondary area. In addition to key City staff, key stakeholders should participate in the charrette, potentially including WSDOT North Central region staff, WSDOT Active Transportation Division staff, and member organizations who were involved in the WSDOT 2019 SR17 Stratford Road study: •Moses Lake Chamber of Commerce•Washington Traffic Safety Commission•Moses Lake Trails Planning Team•Grant County Public Works•Grant County Health District•Port of Moses Lake•City of Moses Lake Planning Commission•Grant Transit Authority•Grant County Economic Development Commission•Big Bend Community College•Grant County Farm Bureau•Grant County FairgroundsAn outline of the Visioning Charrette is provided below: Day 1: Discovery/Site Visit The CONSULTANT will arrive as early as practicable on Day 1, set up the workspace at the venue, meet with the City for initial discussions, conduct a map review of the issues, review the project objectives, and go over the charrette schedule. Then, the CONSULTANT will tour the study area with representatives of the City. For the remainder of the day, the CONSULTANT will work at the venue. Day 2: Stakeholder Interviews During Day 2, the CONSULTANT will conduct a series of stakeholder interviews at the venue. These interviews are for stakeholders identified by the City. Usually, there are one or two people being interviewed at a time. However, if there are many stakeholders with the same issues or from the same entity, up to about four or five people can be interviewed at the same time. Individuals from the City’s leadership are often stakeholders and will be interviewed during this time. COML Council Packet 4-9-24, Page 165 of 222
SCOPE OF WORK 3/31/2024 | 10 TOOLE DESIGN There will be about 12 slots available for stakeholder interviews to ensure there are many opportunities to hear from them. It is not required that all 12 slots be filled. The members of the CONSULTANT team not directly involved with interviews will be doing concurrent work. It would be best if a representative from the City attends the interviews for introduction purposes, clarifying issues, and informational purposes. There will also be public office hours for any stakeholder or member of the public who wishes to come in and share ideas, ask questions, or just see what is going on. The office hours will be from 4:00 p.m. to 6:00 p.m. on Tuesday. Day 3: Develop Starter Ideas/Work Day Day 3 is a production day during which the discoveries and the input from prior days are refined and summarized. The CONSULTANT will keep the summaries as visual as feasible so that they are easy to understand. Any themes, starter ideas, and preliminary direction will be summarized. There are no meetings during the day, except for the pin-up. However, City staff are welcome to drop in and view progress if they desire. The pin-up will occur from 3:00 p.m. to 4:30 p.m. for the City’s leadership and anybody that the City would like to invite. During the pin-up, the CONSULTANT will review the discoveries to date and the starter ideas. This is a chance for the City and any invitees to refine and augment their input, react to the discoveries, and comment on the starter ideas. Next steps will also be covered and discussed which will inform future tasks. From 6:00 p.m. to 7:30 p.m., there will be a second pin-up/public meeting for community members so that they can see how the ideas are progressing and provide additional input. Day 4: Production and Final Presentation On Days 4, the CONSULTANT will advance the starter ideas into more detailed concept plans and finalized products. The CONSULTANT may invite various stakeholders back to review aspects of the work. The amount of detail in the concept design will be a function of the secondary area and the complexity of the challenges in the network and at specific sites. The objective is to provide enough detail so that the process can move forward with support. Products will include a summary of the inputs and design considerations, typical sections along the street, typical intersection treatments, and supporting material as needed. There are no meetings on Day 4, except for the public presentation. However, City staff and selected invitees are welcome to drop in and view progress if they desire. A final public meeting will be held that evening from 6:00-8:00. The CONSULTANT will present a summary of the discovery process, the design process, the plans, and the design concepts. There will be time for questions, answers, and discussion. At this point, the plans and direction should have what is known as “informed consent.” This allows subsequent steps, design refinement, and construction documents to move forward with confidence. The City, stakeholders, and others have collaborated on the products and shaped the outcomes. The ownership, energy, and support of the results will help propel the project through its next steps towards COML Council Packet 4-9-24, Page 166 of 222
SCOPE OF WORK 3/31/2024 | 11 TOOLE DESIGN implementation. The presentation and electronic copies of all the drawings and photographs, made during the charrette, will be provided to the City after the charrette. Task 2.3/2.4 Deliverables:
•Following the charrette, the CONSULTANT team will prepare a brief memorandum summarizingthe charrette recommendations and providing next steps for the City.•Final PowerPoint presentations.•The maps, drawings, photographs, and diagrams developed during the charrette.•The individual electronic files of maps, drawings, photographs, and diagrams.Task 2.3/2.4 Assumptions:
•Up to 5 CONSULTANT staff will attend the in-person Visioning Charrette, including IanLockwood.•The exact nature of the products produced during the charrette will be determined during theprocess in order to be responsive to the context, challenges, and input gained during thecharrettes. The amount of detail on the products will be commensurate with the number ofissues, complexity of issues, and the time available. Based on the CONSULTANT’s currentknowledge of Moses Lake and the needs, the products will likely include the following:oFuture roadway and development network plan.oTypical cross-sections and intersection concepts for the primary project area (illustrativeplan view and section);oDesign concept drawings for the primary project area (illustrative plan view);oA map and design direction for connecting the Stratford Road Interchange area with theCity’s bicycle and pedestrian network, particularly to downtown.•The City will provide a venue in a location that is convenient to the study area where moststakeholders would find accessible. The space should be easy for people to find and adequatelylarge to host the meetings and for the Team to collaborate with stakeholders and do their work.Usually, a space about the size of a large classroom works well. The space will need at least 8six-foot tables and enough chairs for the expected number of participants. The space should becapable of being darkened to show slides on a blank wall or on a large screen. TheCONSULTANT will bring all necessary materials for the charrettes.•The date for the charrette will be scheduled when mutually convenient. We recommendselecting the weeks such that stakeholders can have lots of notice. In that way, busy people canget the dates and times on their calendars before scheduling becomes more difficult later.•The CONSULTANT will prepare and submit a draft memorandum, send to the City for input, andincorporate necessary revisions into a final summary memorandum.TASK 3: WSDOT AND PARTNER COORDINATION As the primary project is focused on an interchange with SR17, which WSDOT owns and maintains, we know that some coordination will be required with WSDOT as the project advances. Projects that are proposing any work in or near WSDOT right-if-way will need to go through the appropriate WSDOT approval processes. For some projects, this may be as simple as a construction and maintenance COML Council Packet 4-9-24, Page 167 of 222
SCOPE OF WORK 3/31/2024 | 12 TOOLE DESIGN permits and agreements. Projects that propose more significant changes to the road itself may require approvals for breaks in limited access or Intersection Control Evaluations (ICE). The level of coordination with other agencies is difficult to estimate at the beginning of the project due to the undefined nature of the projects eventually selected to advance into the design phase. This task assigns a set number of hours for the Consultant to assist the City with early coordination with WSDOT, other public agencies, and major private interested parties. This task would be for any coordination with these agencies outside of the community engagement and charettes in Task 2. Task 3 Deliverables: Meeting agendas, notes, and attendance on an as-needed bases as requested by the City. Task 3 Assumptions:
•Up to 40 hours has been budgeted for this task.TASK 4: EXISTING CONDITIONS ANALYSES AND POLICY REVIEW Task 4.1: Existing Conditions Analyses The Consultant will evaluate and summarize the existing conditions within the secondary area, including conflict analyses, level of traffic stress for all modes, and route directness analysis in a technical memo. This memo will outline the steps that must be taken to achieve the desired level of traffic stress for all modes in accordance with WSDOT’s Complete Streets Policy, such as minimum sidewalk width, type of vertical protection/barrier, type of pedestrian and bicycle facilities, and requirements to meet route direction index of two or less. Task 4.2: Policy Review The Consultant will work closely with City staff to identify existing policies, plans, guidelines, and/or standards pertaining to street design, traffic operations, programming street improvements and funding, as well as traffic-related laws and ordinances and how these are enforced. We will work with staff to identify practices that may or may not be based on official policies and help to determine which of these practices should be endorsed at the policy level or discontinued. The Consultant will review applicable policies, which may include: •2021 Comprehensive Plan•Zoning Code, MLMC Title 18 (draft)•Complete Streets Policy•Activity Trail Master Plan•6-Year STIP 2023-2028•2022 Community Street and Utility Standard Details•2022 Community Street and Utility Standards•Future Land Use•Moses Lake City Limits and UGACOML Council Packet 4-9-24, Page 168 of 222
SCOPE OF WORK 3/31/2024 | 13 TOOLE DESIGN •Policies at the regional, state, and federal levels that inform or impact the City of Moses Lake’spoliciesA technical memorandum will be provided. The memo will document and evaluate existing policies and programs to prioritize recommended updates based on transportation safety, implementation status, state of the practice, and effectiveness in meeting the City’s 20-Year Vision. The memo will identify implementation challenges and appropriate strategies to overcome them. Task 4 Deliverables: 1. Technical memorandum on existing conditions (conflict, level of traffic stress, and routedirectness index).2. Technical memorandum on policy review.Task 4 Assumptions: 1.CITY will provide copies of all relevant plan and policy documents to be reviewed.2. Depending on what data is available, the City will provide the following GIS layers:a. Street centerlinesb. Off-street trailsc. Bicycle facilitiesd. Sidewalkse. Freight routesf. Curb rampsg. Speed datah. Volume datai. Marked crosswalk locationsj. Crosswalk enhancements (e.g., active warnings, signals, islands, etc.)k. Existing and Unimproved City rights-of-wayl. Signal data (Traffic signals, HAWKs, Overhead flashers, RRFBs, School Zones, etc.)m. Transit routes and stopsn. Transit boarding and alighting datao. Land usep. Employment locations (with number of employees) (could be generated throughbusiness license database)q. Core services (dentist offices, hospitals, doctor offices, pharmacies, supermarkets, andsocial services)r. Community centerss. Retail shopping locationst. Parksu. Schools and universitiesv. Permitting/Platting information for new developments (not critical, but majordevelopments should be noted)w. Five years of most recent crash data (if different or modified from WSDOT data)COML Council Packet 4-9-24, Page 169 of 222
SCOPE OF WORK 3/31/2024 | 14 TOOLE DESIGN TASK 5: NETWORK ANALYSES, PROJECT IDENTIFICATION, AND PRIORITIZATION Task 5.1: Network Analysis The Consultant will create a data request for the City that covers all information needed for network analysis tasks regarding the existing bike, pedestrian, and motor vehicle networks; crash history; demographics; land use; and current plans for new development. This task will build off the findings in Task 4.1. The Consultant will summarize the network analysis methodology in a brief technical memo before beginning the analysis. The Consultant will evaluate the existing and planned bicycle, pedestrian, and motor vehicle networks, including the urban growth area, to assess how well they provide access to transit, schools, and other key destinations. The evaluation of networks within the secondary area will be summarized in a technical memorandum, including planning-level facility recommendations to provide ideal multimodal level of service. The Consultant will modify the future year Travel Demand Model as a tool for the City to evaluate the impacts of transportation system changes and, potentially, land use changes. The flexibility of the model will allow the Consultant to modify the model for the proposed transportation system changes within the secondary area, to give the City and WSDOT a sense of traffic impacts with network modifications. The focus will be on the bicycle and pedestrian networks, though a secondary benefit may be improvements to the vehicular network. Task 5.2: Secondary Area Project Identification This task will include identifying key projects to achieve the secondary area vision, established in Task 2. The Consultant will identify projects that will improve safety and connectivity within the secondaryarea. The Consultant will develop and refine a list of key secondary area projects inclusive of all modes,particularly vulnerable road users. Each project will include a planning-level description, relative costestimate, and potential implementation timeline.To decide which projects should be prioritized, the Consultant will develop a data-driven methodology based on project goals, visioning charrettes, and community feedback. Prioritization will include the following steps: •Weighting criteria and scoring projects based on their ability to address each criterion.•Grouping projects by implementation timeline, including short-term projects that may becandidates for “quick wins” and mid- to long-term projects which may require additional fundingor design.•Identifying opportunities to align projects with the City’s CIP, repaving program, and otherefforts.•Providing documentation on the prioritization process and narratives explaining the resultingmaps and projects lists.Task 5.3: Primary Area Project Development and Definition The Consultant will confirm the primary area limits with the City and establish the design criteria based on the findings from previous tasks. The Consultant will explore up to five design concepts and develop COML Council Packet 4-9-24, Page 170 of 222
SCOPE OF WORK 3/31/2024 | 15 TOOLE DESIGN high-level sketches of each concept to facilitate discussion and technical analyses. The Consultant will evaluate the design alternatives in a memo, based on feasibility and findings from previous tasks. Coordination with WSDOT regarding feasibility of design alternatives will be performed under Task 4. The Consultant will document alignment with or variances from City of Moses Lake standards, WSDOT Design Manual, WSDOT Standard Plans, WSDOT’s Complete Streets program, and the WSDOT Active Transportation Programs Design Guide. The Consultant anticipates that the scale of the preferred primary area project will be understood following this task and based on the findings from previous tasks. The analysis of alternatives will be similar to the prioritization of projects in Task 6.2 and will include high-level sketches. Task 5 Deliverables:
•Network analysis methodology technical memorandum•Network analysis and facility recommendations technical memorandum•Modification to the future year Travel Demand Model. Outputs will be high level observationsand screenshots from the model.•List of all recommended secondary area projects•Prioritization methodology technical memorandum•Prioritized secondary area project list•Primary area design alternatives recommendation technical memorandumTask 5 Assumptions:
•Level of effort is based on an understanding that City data is of high quality and will requireminimal rectification before inputting into analyses. If this is not the case, the Consultantreserves the right to take a different analysis approach with consent from the City.•A preliminary budget of 80 hours has been identified for modifications to the City’s existingtravel demand model.•A small number of hours have been budgeted for team members who will have a larger roleduring future phases. The intent is for them to be advisory in Phase 1 and provide input whereneeded. The Consultant reserve the right to shift budget between team members as needsarise.•A budget of $15,000 has been allocated for vendor expenses related to traffic data collectionwhich may include vehicular, pedestrian or bicycle traffic counts or crash or video analytics.TASK 6: PHASE 1 PROJECT REPORT Toole Design will assemble a draft Project Report that includes key takeaways from the existing conditions analysis and public engagement, goals and strategies, prioritized projects and projects recommended to advance to concept design in Phase 2. Toole Design will distribute the draft report to City staff for comments and refine based on responses. If comments are received that are in conflict to each other, City staff will assist Toole Design in resolving the final plan. Toole Design will incorporate comments received into the Final Plan. COML Council Packet 4-9-24, Page 171 of 222
SCOPE OF WORK 3/31/2024 | 16 TOOLE DESIGN Task 6 Deliverables:
• Draft Project Report (in Microsoft Word and PDF) • Final Project Report (in Microsoft Word and PDF) Task 6 Assumptions:
• The CITY will provide guidance (i.e., style guide, feedback on graphic examples provided by Toole Design) prior to Toole Design developing the graphic content and document layout. • The CITY will lead the internal review process and provide Toole Design with clear, nonconflicting comments to facilitate the revision process. TASK 7: GRANT AND SECONDARY AREA PROJECT SUPPORT The Consultant will support the City on an as-requested basis with the following: • Grant application or administration support for projects in the secondary project area • Technical support or review of active projects within the secondary project area Task 7 Assumptions:
• Work on this task will be on an as requested basis • A preliminary budget of 60 hours has been identified for this task. COML Council Packet 4-9-24, Page 172 of 222
Exhibit B
DBE Participation
Agreement Number:
Exhibit B - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 1
COML Council Packet 4-9-24, Page 173 of 222
Exhibit C
Preparation and Delivery of Electronic Engineering and Other Data
In this Exhibit the agency, as applicable, is to provide a description of the format and standards the consultant is
to use in preparing electronic files for transmission to the agency. The format and standards to be provided may
include, but are not limited to, the following:
I.Surveying, Roadway Design & Plans Preparation Section
A.Survey Data
B.Roadway Design Files
C.Computer Aided Drafting Files
Agreement Number:
Exhibit C - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 4 COML Council Packet 4-9-24, Page 174 of 222
D.Specify the Agency’s Right to Review Product with the Consultant
E.Specify the Electronic Deliverables to Be Provided to the Agency
F.Specify What Agency Furnished Services and Information Is to Be Provided
Agreement Number:
Exhibit C - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 2 of 4 COML Council Packet 4-9-24, Page 175 of 222
II.Any Other Electronic Files to Be Provided
III.Methods to Electronically Exchange Data
Exhibit C - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 3 of 4 COML Council Packet 4-9-24, Page 176 of 222
A.Agency Software Suite
B.Electronic Messaging System
C.File Transfers Format
Exhibit C - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 4 of 4 COML Council Packet 4-9-24, Page 177 of 222
Exhibit D
Prime Consultant Cost Computations
Agreement Number:
Exhibit D - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 1 COML Council Packet 4-9-24, Page 178 of 222
Project Name:
Project Number:
Consultant:
HOURLY RATES
Overhead
Fee
(Profit)
Max
Hourly
Classification Hours 162.20% 31.8%Rate
64 90.00$ $145.98 $28.62 $264.60 $16,934.40
196 80.00$ $129.76 $25.44 $235.20 $46,099.20
Engineering Lead I 40 70.00$ $113.54 $22.26 $205.80 $8,232.00
260 60.00$ $97.32 $19.08 $176.40 $45,864.00
54 54.00$ $87.59 $17.17 $158.76 $8,573.04
88 50.00$ $81.10 $15.90 $147.00 $12,936.00
40 40.00$ $64.88 $12.72 $117.60 $4,704.00
Planner I 40 34.00$ $55.15 $10.81 $99.96 $3,998.40
Planning Lead 52 65.00$ $105.43 $20.67 $191.10 $9,937.20
Total Hours 834 Subtotal:$157,278.24
REIMBURSABLES
$15,000
$5,000
$500
Subtotal:$20,500
SUBCONSULTANT COSTS (See Exhibit E)
Perteet, Inc.$36,092
Firm Foundations $42,470
Fehr & Peers $17,658
HDR Engineering Inc.$5,607
Commonstreet $3,406
Subtotal:$105,232
Total:$283,010.43
Contingency:
GRAND TOTAL: $283,010.43
TotalMax DSC
Exhibit D
Consultant Fee Determination
Principal in Charge/Advisor
SR17 Stratford Road
00SEA.00255.00
Toole Design Group, LLC
Engineering Lead II
Project Engineer
Traffic Data
Travel
Reproduction (copies, plots, etc.)
Miscellanous
Planner II
Project Planner
Project Engineer II
Agreement Exhibit D COML Council Packet 4-9-24, Page 179 of 222
COML Council Packet 4-9-24, Page 180 of 222
Exhibit E
Sub-consultant Cost Computations
If no sub-consultant participation at this time. The CONSULTANT shall not sub-contract for the
performance of any work under this AGREEMENT without prior written permission of the AGENCY.
Refer to section VI “Sub-Contracting” of this AGREEMENT.
Agreement Number:
Exhibit E - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 1 COML Council Packet 4-9-24, Page 181 of 222
Project Name:
Project Number:
Consultant:
HOURLY RATES
Overhead
Fee
(Profit)
Max
Hourly
Classification Hours 188.43%31.8%Rate
Sr Engineer / Manager 136 77.00$ $145.09 $24.49 $246.58 $33,534.88
Lead Engineer/Manager 61.00$ $114.94 $19.40 $195.34
Engineer III 52.00$ $97.98 $16.54 $166.52
Civil Designer II 47.00$ $88.56 $14.95 $150.51
Civil Designer II 39.00$ $73.49 $12.40 $124.89
Contract Administrator 76.00$ $143.21 $24.17 $243.38
Senior Accountant6 55.00$ $103.64 $17.49 $176.13 $1,056.78
Clerical 36.00$ $67.83 $11.45 $115.28
Total Hours 142 Subtotal:$34,591.66
REIMBURSABLES
$1,500
Subtotal:$1,500
Subtotal:
Total:$36,091.66
Contingency:
GRAND TOTAL: $36,091.66
Exhibit E-1
Consultant Fee Determination
SR17 Stratford Road
00SEA.00255.00
Perteet, Inc.
Traffic Data
Travel
Max DSC Total
Reproduction (copies, plots, etc.)
Miscellanous
Agreement Exhibit E-1 Perteet COML Council Packet 4-9-24, Page 182 of 222
August 30, 2023
Perteet, Inc.
2707 Colby Avenue, Suite 900
Everett, WA 98201
Subject: Acceptance FYE 2022 ICR – CPA Report
Dear Denice M. Moan:
We have accepted your firms FYE 2022 Indirect Cost Rate (ICR) of 188.43% of direct labor
(rate includes 0.23% Facilities Capital Cost of Money) based on the “Independent CPA
Report,” prepared by Stambaugh Ness. This rate will be applicable for WSDOT Agreements
and Local Agency Contracts in Washington only. This rate may be subject to additional
review if considered necessary by WSDOT. Your ICR must be updated on an annual basis.
Costs billed to agreements/contracts will still be subject to audit of actual costs, based on
the terms and conditions of the respective agreement/contract.
This was not a cognizant review. Any other entity contracting with the firm is responsible
for determining the acceptability of the ICR.
If you have any questions, feel free to contact our office at (360) 704-6397 or via email
consultantrates@wsdot.wa.gov.
Regards,
SCHATZIE HARVEY, CPA
Contract Services Manager
SH:leg
COML Council Packet 4-9-24, Page 183 of 222
Project Name:
Project Number:
Consultant:
HOURLY RATES
Overhead
Fee
(Profit)
Max
Hourly
Classification Hours 110.00% 31.8%Rate
Principal 125 75.00$ $82.50 $23.85 $181.35 $22,668.75
Senior Staff 74 50.00$ $55.00 $15.90 $120.90 $8,946.60
Project Manager 63 45.00$ $49.50 $14.31 $108.81 $6,855.03
Project Coordinator 35.00$ $38.50 $11.13 $84.63
Project Associate 25.00$ $27.50 $7.95 $60.45
Total Hours 262 Subtotal:$38,470.38
REIMBURSABLES
$3,000
$1,000
Subtotal:$4,000
Subtotal:
Total:$42,470.38
Contingency:
GRAND TOTAL: $42,470.38
Exhibit E-2
Consultant Fee Determination
SR17 Stratford Road
00SEA.00255.00
Firm Foundations
Max DSC Total
Traffic Data
Travel
Reproduction (copies, plots, etc.)
Miscellanous
Agreement Exhibit E-2 FF COML Council Packet 4-9-24, Page 184 of 222
Project Name:
Project Number:
Consultant:
HOURLY RATES
Overhead
Fee
(Profit)
Max
Hourly
Classification Hours 183.52%31.8%Rate
Associate 119.00$ $218.39 $37.84 $375.23
Associate 80 70.00$ $128.46 $22.26 $220.72 $17,657.60
Planner 40.00$ $73.41 $12.72 $126.13
Total Hours 80 Subtotal:$17,657.60
REIMBURSABLES
Subtotal:
Subtotal:
Total:$17,657.60
Contingency:
GRAND TOTAL: $17,657.60
Exhibit E-3
Consultant Fee Determination
SR17 Stratford Road
00SEA.00255.00
Fehr & Peers
Max DSC Total
Traffic Data
Travel
Reproduction (copies, plots, etc.)
Miscellanous
Agreement Exhibit E-3 F&P COML Council Packet 4-9-24, Page 185 of 222
July 19, 2023
Fehr & Peers
100 Pringle Avenue, Suite 600
Walnut Creek, CA 94596
Subject: Acceptance FYE 2022 ICR – CPA Report
Dear Lysa Wollard:
We have accepted your firms FYE 2022 Indirect Cost Rate (ICR) of 183.52% of direct
labor based on the “Independent CPA Report,” prepared by D.L. Purvine, CPA, PLLC.
This rate will be applicable for WSDOT Agreements and Local Agency Contracts in
Washington only. This rate may be subject to additional review if considered necessary
by WSDOT. Your ICR must be updated on an annual basis.
Costs billed to agreements/contracts will still be subject to audit of actual costs, based
on the terms and conditions of the respective agreement/contract.
This was not a cognizant review. Any other entity contracting with the firm is
responsible for determining the acceptability of the ICR.
If you have any questions, feel free to contact our office at (360) 704-6397 or via email
consultantrates@wsdot.wa.gov.
Regards;
SCHATZIE HARVEY, CPA
Contract Services Manager
SH:BJO
COML Council Packet 4-9-24, Page 186 of 222
Project Name:
Project Number:
Consultant:
HOURLY RATES
Overhead
Fee
(Profit)
Max
Hourly
Classification Hours 157.57%31.8%Rate
20 96.88$ $152.65 $30.81 $280.34 $5,606.83
Total Hours 20 Subtotal:$5,606.83
REIMBURSABLES
Subtotal:
Subtotal:
Total:$5,606.83
Contingency:
GRAND TOTAL: $5,606.83
Exhibit E-4
Consultant Fee Determination
SR17 Stratford Road
00SEA.00255.00
HDR Engineering Inc.
Max DSC Total
Traffic Data
Travel
Reproduction (copies, plots, etc.)
Miscellanous
Agreement Exhibit E-4 HDR COML Council Packet 4-9-24, Page 187 of 222
5/23/2023
HDR Engineering, Inc.
1917 S 67th Street
Omaha, NE 68106
Subject: Acceptance FYE 2022 ICR – Cognizant Review
Dear Joe Cox:
We have accepted your firms FYE 2022 Indirect Cost Rate (ICR) of 157.57% (rate
includes 0.29% Facilities Capital Cost of Money) based on the “Cognizant Review”
from the Nebraska Department of Transportation. This rate will be applicable for
WSDOT Agreements and Local Agency Contracts in Washington only. This rate may
be subject to additional review if considered necessary by WSDOT. Your ICR must be
updated on an annual basis.
Costs billed to agreements/contracts will still be subject to audit of actual costs, based
on the terms and conditions of the respective agreement/contract.
Any other entity contracting with your firm is responsible for determining the
acceptability of the ICR.
If you have any questions, feel free to contact our office at (360) 704-6397 or via email
consultantrates@wsdot.wa.gov.
Regards;
SCHATZIE HARVEY, CPA
Contract Services Manager
SH:HK
COML Council Packet 4-9-24, Page 188 of 222
Project Name:
Project Number:
Consultant:
HOURLY RATES
Overhead
Fee
(Profit)
Max
Hourly
Classification Hours 102.75%31.8%Rate
Project Manager / Property Manager 12 71.00$ $72.95 $22.58 $166.53 $1,998.36
Sr Project Control Specialist/Sr ROW Technician 12 50.00$ $51.38 $15.90 $117.28 $1,407.36
Total Hours 24 Subtotal:$3,405.72
REIMBURSABLES
Subtotal:
Subtotal:
Total:$3,405.72
Contingency:
GRAND TOTAL: $3,405.72
Exhibit E-5
Consultant Fee Determination
SR17 Stratford Road
00SEA.00255.00
Commonstreet
Max DSC Total
Traffic Data
Travel
Reproduction (copies, plots, etc.)
Miscellanous
Agreement Exhibit E-5 Commonstr COML Council Packet 4-9-24, Page 189 of 222
March 24, 2023
Commonstreet Consulting, LLC
100 S King Street, Ste. 100
Seattle, WA 98104
Subject: Acceptance FYE 2022 ICR Risk Assessment Review
Dear Kelly Skove:
Assessment review of your Indirect Cost Rate (ICR), we have accepted your proposed
FYE 2022 ICR of 102.57%. This rate will be applicable for WSDOT Agreements and
Local Agency Contracts in Washington only. This rate may be subject to additional
review if considered necessary by WSDOT. Your ICR must be updated on an annual
basis.
Costs billed to agreements/contracts will still be subject to audit of actual costs, based
on the terms and conditions of the respective agreement/contract.
This was not a cognizant review. Any other entity contracting with your firm is
responsible for determining the acceptability of the ICR.
If you have any questions, feel free to contact our office at (360) 705-7019 or via email
consultantrates@wsdot.wa.gov.
Regards;
SCHATZIE HARVEY, CPA
Contract Services Manager
SH:ah
COML Council Packet 4-9-24, Page 190 of 222
Agreement Number ____________
Local Agency A&E Professional Services Cost
Plus Fixed Fee Consultant Agreement Revised 02/01/2021
Exhibit F - Title VI Assurances Appendix A & E
APPENDIX ADuring the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the "contractor") agrees as follows:
1.Compliance with Regulations: The contractor (hereinafter includes consultants) will comply with the Acts
and the Regulations relative to Non-discrimination in Federally-assisted programs of the U.S. Department ofTransportation, (Title of Modal Operating Administration), as they may be amended from time to time, whichare herein incorporated by reference and made a part of this contract.
2.Non-discrimination: The contractor, with regard to the work performed by it during the contract, will notdiscriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors,including procurements of materials and leases of equipment. The contractor will not participate directly orindirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices
when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR Part 21.
[Include Modal Operating Administration specific program requirements.]
3.Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations,
either by competitive bidding, or negotiation made by the contractor for work to be performed under a
subcontract, including procurements of materials, or leases of equipment, each potential subcontractor orsupplier will be notified by the contractor of the contractor's obligations under this contract and the Acts andthe Regulations relative to Non-discrimination on the grounds of race, color, or national origin. [IncludeModal Operating Administration specific program requirements.]
4.Information and Reports: The contractor will provide all information and reports required by the Acts, theRegulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, othersources of information, and its facilities as may be determined by the Recipient or the (Title of Modal
Operating Administration) to be pertinent to ascertain compliance with such Acts, Regulations, and
instructions. Where any information required of a contractor is in the exclusive possession of another who fails
or refuses to furnish the information, the contractor will so certify to the Recipient or the (Title of Modal
Operating Administration), as appropriate, and will set forth what efforts it has made to obtain the information.
5.Sanctions for Noncompliance: In the event of a contractor's noncompliance with the Non- discriminationprovisions of this contract, the Recipient will impose such contract sanctions as it or the (Title of ModalOperating Administration) may determine to be appropriate, including, but not limited to:
a.withholding payments to the contractor under the contract until the contractor complies; and/orb.cancelling, terminating, or suspending a contract, in whole or in part.
6.Incorporation of Provisions: The contractor will include the provisions of paragraphs one through six in
every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the
Regulations and directives issued pursuant thereto. The contractor will take action with respect to any
subcontract or procurement as the Recipient or the (Title of Modal Operating Administration) may direct as a
means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor
becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction,the contractor may request the Recipient to enter into any litigation to protect the interests of the Recipient. Inaddition, the contractor may request the United States to enter into the litigation to protect the interests of theUnited States.
COML Council Packet 4-9-24, Page 191 of 222
Local Agency A&E Professional Services
Agreement Number ____________ Negotiated Hourly Rate Consultant Agreement Revised 02/01/2021
Exhibit F - Title VI Assurances Appendix A & E
APPENDIX E
During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the "contractor") agrees to comply with the following non-discrimination statutes
and authorities; including but not limited to:
Pertinent Non-Discrimination Authorities:
•Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibitsdiscrimination on the basis of race, color, national origin); and 49 CFR Part 21.
•The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. §4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because ofFederal or Federal-aid programs and projects);
•Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), (prohibits discrimination on the basis ofsex);•Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits
discrimination on the basis of disability); and 49 CFR Part 27;
•The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination
on the basis of age);
•Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as amended, (prohibits
discrimination based on race, creed, color, national origin, or sex);
•The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage andapplicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 andSection 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs oractivities" to include all of the programs or activities of the Federal-aid recipients, sub-recipients andcontractors, whether such programs or activities are Federally funded or not);•Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis ofdisability in the operation of public entities, public and private transportation systems, places of publicaccommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by
Department of Transportation regulations at 49 C.F.R. parts 37 and 38;
•The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. § 47123) (prohibits
discrimination on the basis of race, color, national origin, and sex);
•Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and
Low-Income Populations, which ensures discrimination against minority populations by discouragingprograms, policies, and activities with disproportionately high and adverse human health orenvironmental effects on minority and low-income populations;
•Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency,and resulting agency guidance, national origin discrimination includes discrimination because of limitedEnglish proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps toensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);•Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating
because of sex in education programs or activities (20 U.S.C. 1681 et seq).
COML Council Packet 4-9-24, Page 192 of 222
Exhibit G
Certification Documents
Exhibit G-1(a) Certification of Consultant
Exhibit G-1(b) Certification of CITY OF MOSES LAKE
Exhibit G-2 Certification Regarding Debarment, Suspension and Other Responsibility Matters -
Primary Covered Transactions
Exhibit G-3 Certification Regarding the Restrictions of the Use of Federal Funds for Lobbying
Exhibit G-4 Certificate of Current Cost or Pricing Data
Agreement Number:
Exhibit G - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 1 COML Council Packet 4-9-24, Page 193 of 222
Exhibit G-1(a) Certification of Consultant
I hereby certify that I am the and duly authorized representative of the firm of
whose address is
and that neither the above firm nor I have:
a) Employed or retained for a commission, percentage, brokerage, contingent fee, or other consideration,
any firm or person (other than a bona fide employee working solely for me or the above CONSULTANT)
to solicit or secure this AGREEMENT;
b) Agreed, as an express or implied condition for obtaining this contract, to employ or retain the services of
any firm or person in connection with carrying out this AGREEMENT; or
c) Paid, or agreed to pay, to any firm, organization or person (other than a bona fide employee working solely
for me or the above CONSULTANT) any fee, contribution, donation, or consideration of any kind for, or in
connection with, procuring or carrying out this AGREEMENT; except as hereby expressly stated (if any);
I acknowledge that this certificate is to be furnished to the
and the Federal Highway Administration, U.S. Department of Transportation in connection with this
AGREEMENT involving participation of Federal-aid highway funds, and is subject to applicable State and
Federal laws, both criminal and civil.
Consultant (Firm Name)
Signature (Authorized Official of Consultant) Date
Agreement Number:
Exhibit G - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 COML Council Packet 4-9-24, Page 194 of 222
Exhibit G-1(b) Certification of
I hereby certify that I am the:
Other
of the , and
or its representative has not been required, directly or indirectly as an express or implied condition in connection
with obtaining or carrying out this AGREEMENT to:
a) Employ or retain, or agree to employ to retain, any firm or person; or
b) Pay, or agree to pay, to any firm, person, or organization, any fee, contribution, donation, or consideration
of any kind; except as hereby expressly stated (if any):
I acknowledge that this certificate is to be furnished to the
and the Federal Highway Administration, U.S. Department of Transportation, in connection with this
AGREEMENT involving participation of Federal-aid highway funds, and is subject to applicable State and
Federal laws, both criminal and civil.
Signature Date
Agreement Number:
Exhibit G - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 COML Council Packet 4-9-24, Page 195 of 222
Exhibit G-2 Certification Regarding Debarment, Suspension and Other
Responsibility Matters - Primary Covered Transactions
I.The prospective primary participant certifies to the best of its knowledge and belief, that it and its principals:
A.Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from covered transactions by any Federal department or agency;
B.Have not within a three (3) year period preceding this proposal been convicted of or had a civil judgment
rendered against them for commission of fraud or a criminal offense in connection with obtaining,
attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under
a public transaction; violation of Federal or State anti-trust statues or commission of embezzlement,
theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving
stolen property;
C.Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity
(Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b)
of this certification; and
D.Have not within a three (3) year period preceding this application / proposal had one or more public
transactions (Federal, State and local) terminated for cause or default.
II.Where the prospective primary participant is unable to certify to any of the statements in this certification,
such prospective participant shall attach an explanation to this proposal.
Consultant (Firm Name)
Signature (Authorized Official of Consultant) Date
Agreement Number:
Exhibit G - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 COML Council Packet 4-9-24, Page 196 of 222
Exhibit G-3 Certification Regarding the Restrictions of the Use of Federal Funds
for Lobbying
The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her
knowledge and belief, that:
1.No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any
person for influencing or attempting to influence an officer or employee of any Federal agency, a Member
of Congress, an officer or employee of Congress, or any employee of a Member of Congress in connection
with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan,
the entering into of any cooperative AGREEMENT, and the extension, continuation, renewal, amendment,
or modification of Federal contract, grant, loan or cooperative AGREEMENT.
2.If any funds other than Federal appropriated funds have been paid or will be paid to any person for
influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress,
an officer or employee of Congress, or an employee of a Member of Congress in connection with this
Federal contract, grant, loan or cooperative AGREEMENT, the undersigned shall complete and submit
Standard Form - LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
This certification is a material representation of fact upon which reliance was placed when this transaction
was made or entered into. Submission of this certification is a prerequisite for making or entering into
this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000.00, and not more than $100,000.00,
for each such failure.
The prospective participant also agrees by submitting his or her bid or proposal that he or she shall require
that the language of this certification be included in all lower tier sub-contracts, which exceed $100,000,
and that all such sub-recipients shall certify and disclose accordingly.
Consultant (Firm Name)
Signature (Authorized Official of Consultant) Date
Agreement Number:
Exhibit G - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 COML Council Packet 4-9-24, Page 197 of 222
Exhibit G-4 Certificate of Current Cost or Pricing Data
This is to certify that, to the best of my knowledge and belief, the cost or pricing data (as defined in section
2.101 of the Federal Acquisition Regulation (FAR) and required under FAR subsection 15.403-4) submitted,
either actually or by specific identification in writing, to the Contracting Officer or to the Contracting Officer’s
representative in support of * are accurate, complete, and current
**as of .
This certification includes the cost or pricing data supporting any advance AGREEMENT’s and forward pricing
rate AGREEMENT’s between the offer or and the Government that are part of the proposal.
Firm:
Signature Title
Date of Execution***:
*Identify the proposal, quotation, request for pricing adjustment, or other submission involved, giving the appropriate identifying number (e.g. project title.)
**Insert the day, month, and year, when price negotiations were concluded and price AGREEMENT was reached.
***Insert the day, month, and year, of signing, which should be as close as practicable to the date when the price negotiations were concluded and the
contract price was agreed to.
Agreement Number:
Exhibit G - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 COML Council Packet 4-9-24, Page 198 of 222
Exhibit H
Liability Insurance Increase
To Be Used Only If Insurance Requirements Are Increased
The professional liability limit of the CONSULTANT to the AGENCY identified in Section XII, Legal Relations
and Insurance of this Agreement is amended to $ .
The CONSULTANT shall provide Professional Liability insurance with minimum per occurrence limits in the
amount of $ .
Such insurance coverage shall be evidenced by one of the following methods:
•Certificate of Insurance.
•Self-insurance through an irrevocable Letter of Credit from a qualified financial institution.
Self-insurance through documentation of a separate fund established exclusively for the payment of professional
liability claims, including claim amounts already reserved against the fund, safeguards established for payment
from the fund, a copy of the latest annual financial statements, and disclosure of the investment portfolio for
those funds.
Should the minimum Professional Liability insurance limit required by the AGENCY as specified above exceed
$1 million per occurrence or the value of the contract, whichever is greater, then justification shall be submitted
to the Federal Highway Administration (FHWA) for approval to increase the minimum insurance limit.
If FHWA approval is obtained, the AGENCY may, at its own cost, reimburse the CONSULTANT for the additional
professional liability insurance required.
Notes: Cost of added insurance requirements: $ .
Include all costs, fee increase, premiums.
This cost shall not be billed against an FHWA funded project.
•For final contracts, include this exhibit.
Agreement Number:
Exhibit H - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 1
NOT USED
COML Council Packet 4-9-24, Page 199 of 222
Exhibit I
Alleged Consultant Design Error Procedures
The purpose of this exhibit is to establish a procedure to determine if a consultant’s alleged design error is of a
nature that exceeds the accepted standard of care. In addition, it will establish a uniform method for the resolution
and/or cost recovery procedures in those instances where the agency believes it has suffered some material damage
due to the alleged error by the consultant.
Step 1 Potential Consultant Design Error(s) is Identified by Agency’s Project Manager
At the first indication of potential consultant design error(s), the first step in the process is for the Agency’s
project manager to notify the Director of Public Works or Agency Engineer regarding the potential design
error(s). For federally funded projects, the Region Local Programs Engineer should be informed and
involved in these procedures. (Note: The Director of Public Works or Agency Engineer may appoint an
agency staff person other than the project manager, who has not been as directly involved in the project,
to be responsible for the remaining steps in these procedures.)
Step 2 Project Manager Documents the Alleged Consultant Design Error(s)
After discussion of the alleged design error(s) and the magnitude of the alleged error(s), and with the
Director of Public Works or Agency Engineer’s concurrence, the project manager obtains more detailed
documentation than is normally required on the project. Examples include: all decisions and descriptions
of work; photographs, records of labor, materials and equipment.
Step 3 Contact the Consultant Regarding the Alleged Design Error(s)
If it is determined that there is a need to proceed further, the next step in the process is for the project
manager to contact the consultant regarding the alleged design error(s) and the magnitude of the alleged
error(s). The project manager and other appropriate agency staff should represent the agency and the
consultant should be represented by their project manager and any personnel (including sub-consultants)
deemed appropriate for the alleged design error(s) issue.
Step 4 Attempt to Resolve Alleged Design Error with Consultant
After the meeting(s) with the consultant have been completed regarding the consultant’s alleged design
error(s), there are three possible scenarios:
It is determined via mutual agreement that there is not a consultant design error(s). If this is the case,
then the process will not proceed beyond this point.
It is determined via mutual agreement that a consultant design error(s) occurred. If this is the case,
then the Director of Public Works or Agency Engineer, or their representatives, negotiate a settlement
with the consultant. The settlement would be paid to the agency or the amount would be reduced from
the consultant’s agreement with the agency for the services on the project in which the design error
took place. The agency is to provide LP, through the Region Local Programs Engineer, a summary
of the settlement for review and to make adjustments, if any, as to how the settlement affects federal
reimbursements. No further action is required.
There is not a mutual agreement regarding the alleged consultant design error(s). The consultant may
request that the alleged design error(s) issue be forwarded to the Director of Public Works or Agency
Engineer for review. If the Director of Public Works or Agency Engineer, after review with their legal
counsel, is not able to reach mutual agreement with the consultant, proceed to Step 5.
Agreement Number:
Exhibit I - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 2 COML Council Packet 4-9-24, Page 200 of 222
Step 5 Forward Documents to Local Programs
For federally funded projects all available information, including costs, should be forwarded through the
Region Local Programs Engineer to LP for their review and consultation with the FHWA. LP will meet
with representatives of the agency and the consultant to review the alleged design error(s), and attempt
to find a resolution to the issue. If necessary, LP will request assistance from the Attorney General’s Office
for legal interpretation. LP will also identify how the alleged error(s) affects eligibility of project costs
for federal reimbursement.
If mutual agreement is reached, the agency and consultant adjust the scope of work and costs
to reflect the agreed upon resolution. LP, in consultation with FHWA, will identify the amount
of federal participation in the agreed upon resolution of the issue.
If mutual agreement is not reached, the agency and consultant may seek settlement by arbitration
or by litigation.
Agreement Number:
Exhibit I - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 2 of 2 COML Council Packet 4-9-24, Page 201 of 222
Exhibit J Consultant Claim Procedures
The purpose of this exhibit is to describe a procedure regarding claim(s) on a consultant agreement. The following
procedures should only be utilized on consultant claims greater than $1,000. If the consultant’s claim(s) are a total
of $1,000 or less, it would not be cost effective to proceed through the outlined steps. It is suggested that the
Director of Public Works or Agency Engineer negotiate a fair and reasonable price for the consultant’s claim(s)
that total $1,000 or less.
This exhibit will outline the procedures to be followed by the consultant and the agency to consider a potential
claim by the consultant.
Step 1 Consultant Files a Claim with the Agency Project Manager
If the consultant determines that they were requested to perform additional services that were outside
of the agreement’s scope of work, they may be entitled to a claim. The first step that must be completed
is the request for consideration of the claim to the Agency’s project manager.
The consultant’s claim must outline the following:
•Summation of hours by classification for each firm that is included in the claim;
Any correspondence that directed the consultant to perform the additional work;
Timeframe of the additional work that was outside of the project scope;
•Summary of direct labor dollars, overhead costs, profit and reimbursable costs associated with
the additional work; and
Explanation as to why the consultant believes the additional work was outside of the agreement
scope of work.
Step 2 Review by Agency Personnel Regarding the Consultant’s Claim for Additional Compensation
After the consultant has completed step 1, the next step in the process is to forward the request to the
Agency’s project manager. The project manager will review the consultant’s claim and will met with the
Director of Public Works or Agency Engineer to determine if the Agency agrees with the claim. If the
FHWA is participating in the project’s funding, forward a copy of the consultant’s claim and the Agency’s
recommendation for federal participation in the claim to the WSDOT Local Programs through the Region
Local Programs Engineer. If the claim is not eligible for federal participation, payment will need to be from
agency funds.
If the Agency project manager, Director of Public Works or Agency Engineer, WSDOT Local Programs
(if applicable), and FHWA (if applicable) agree with the consultant’s claim, send a request memo, including
backup documentation to the consultant to either supplement the agreement, or create a new agreement
for the claim. After the request has been approved, the Agency shall write the supplement and/or new
agreement and pay the consultant the amount of the claim. Inform the consultant that the final payment for
the agreement is subject to audit. No further action in needed regarding the claim procedures.
If the Agency does not agree with the consultant’s claim, proceed to step 3 of the procedures.
Agreement Number:
Exhibit J - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 1 of 2 COML Council Packet 4-9-24, Page 202 of 222
Step 3 Preparation of Support Documentation Regarding Consultant’s Claim(s)
If the Agency does not agree with the consultant’s claim, the project manager shall prepare a summary
for the Director of Public Works or Agency Engineer that included the following:
Copy of information supplied by the consultant regarding the claim;
•Agency’s summation of hours by classification for each firm that should be included in the claim;
Any correspondence that directed the consultant to perform the additional work;
•Agency’s summary of direct labor dollars, overhead costs, profit and reimbursable costs associated
with the additional work;
•Explanation regarding those areas in which the Agency does/does not agree with the consultant’s
claim(s);
Explanation to describe what has been instituted to preclude future consultant claim(s); and
Recommendations to resolve the claim.
Step 4 Director of Public Works or Agency Engineer Reviews Consultant Claim and Agency Documentation
The Director of Public Works or Agency Engineer shall review and administratively approve or disapprove
the claim, or portions thereof, which may include getting Agency Council or Commission approval (as
appropriate to agency dispute resolution procedures). If the project involves federal participation, obtain
concurrence from WSDOT Local Programs and FHWA regarding final settlement of the claim. If the claim
is not eligible for federal participation, payment will need to be from agency funds.
Step 5 Informing Consultant of Decision Regarding the Claim
The Director of Public Works or Agency Engineer shall notify (in writing) the consultant of their final
decision regarding the consultant’s claim(s). Include the final dollar amount of the accepted claim(s)
and rationale utilized for the decision.
Step 6 Preparation of Supplement or New Agreement for the Consultant’s Claim(s)
The agency shall write the supplement and/or new agreement and pay the consultant the amount
of the claim. Inform the consultant that the final payment for the agreement is subject to audit.
Agreement Number:
Exhibit J - Local Agency A&E Professional Services Cost Plus Fixed Fee Consultant Agreement Revised 02/01/2021 Page 2 of 2 COML Council Packet 4-9-24, Page 203 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
Kevin Fuhr, City Manager 15287
Brian Baltzell, Director Public Works
4/9/2024 Consent Agenda
Accept additional STBG Funds for Yonezawa/SR17 Intersection Improvement
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
1,248,500.00$0.00$1,248,500.00$
Staff recommends Council to accept additional Grant Funds and authorize use.
MOSES LAKE YONEZAWA AMENDED - 2024 STBG AWARD 3-29-
2024.pdf 224.71KB
Staff was tasked with finding additional funds to be utilized for the SR17/Yonezawa Blvd Intersection
Improvement Project. The City of Moses Lake successfully applied for and was granted $1,100,000.00 that can
be utilized for the project and can be utilized as match.
The City of Moses Lake will be required to match these federal funds with 13.5% local funds for a total of
$148,500. Federal funds are eligible to be used as match for TIB Funds which require a minimum of 20%. This
will increase the likelihood of being able to receive additional funds needed for construction of the Roundabout
and reduce cost to city.
Options and Results
Staff will execute agreement to accept funding.
Staff will bring back options for recommended changes.
Staff will await Council direction for next steps COML Council Packet 4-9-24, Page 204 of 222
COML Council Packet 4-9-24, Page 205 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Kevin Fuhr, City Manager 15281
Brian Baltzell, Director Public Works
4/9/2024 Consent Agenda
Accept Potable Water Reservoir Inspection Project (GC2024-191)
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
0.00$0.00$0.00$
City staff recommends that City Council motion to formally accept the Potable Water Reservoir Inspection
Project (GC2024-191).
GC2024-191 Potable Water Reservoir Inspection Final Pay Estimate
Signed.pdf 284.64KB
The City currently has nine active potable water reservoirs throughout its water system. These reservoirs
require periodic maintenance to extend their useful life and to protect water quality. The condition of the interior
of the reservoirs needs to be inspected periodically in order to determine whether maintenance is needed. The
last time the reservoirs in the city were inspected was in the year 2012. This year, the city decided to inspect
the reservoir interiors under a general services contract. Out of the nine active reservoirs, five were selected for
inspection, due to budget constraints.
The inspection was successfully carried out during the week of March 18th at Reservoirs 1,2,3,7 and 9 using an
underwater remotely operated vehicle. The city now has inspection reports, pictures and video for the exterior
and interior of those reservoirs. A future inspection project is recommended to inspect reservoirs 4,5,6, and 8.
City staff will spend time reviewing the inspection report and video files. They will be used in the future to
prioritize maintenance projects for the City's potable water reservoirs.
This project involved the spending of budgeted funds.
Options and Results
COML Council Packet 4-9-24, Page 206 of 222
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
City staff will send a Notification of Acceptance Letter to the contractor.
Staff will review the amended direction and provide options for the recommended changes.
The project will not be formally accepted at this time.
COML Council Packet 4-9-24, Page 207 of 222
COML Council Packet 4-9-24, Page 208 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Approve, Authorize, or Adopt:
Provide Amended Direction:
Mayor and City Council 15225
Kevin Fuhr, City Manager Administration
4/9/2024 New Business
Amending Chapter 10.12 of the Moses Lake Municipal Code
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
0.00$0.00$0.00$
Council approval of the amended ordinance.
Parking Ordinance-Revised-2024.docx 31.17KB
At the March 27, 2024, Council meeting, Council directed staff to amend the City's parking ordinance in the
downtown corridor. Specifically, Council directed that 3rd Ave between Division St and Ash St would remain
two (2) hour parking, 3rd Ave 100 feet west of Ash St would remain two (2) hour parking, and all other parking
areas within the downtown corridor would change to four (4) hour parking.
The attached ordinance reflects the change requested by the City Council.
Only fiscal impact will be in changing two (2) hour signage to four (4) hour signage. No price has been
established at this point, however, should not cost more than a couple thousand dollars.
Options and Results
Approve the ordinance as amended.
Staff will bring back options for recommended changes.
COML Council Packet 4-9-24, Page 209 of 222
No Action Taken:
Do not adopt amended ordinance.
COML Council Packet 4-9-24, Page 210 of 222
ORDINANCE NO. 3046
AN ORDINANCE AMENDING CHAPTER 10.12 OF THE MOSES LAKE MUNICIPAL CODE TITLED “RESTRICTED PARKING AREAS”
THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON DO ORDAIN AS
FOLLOWS:
Section 1. Sections of 10.12.035(B) and (E) are amended as follows and no changes to Sections 10.12.035(C), (D), (F), or (G):
10.12.035(B)(1) Two Hour Parking. Parking is prohibited for periods longer than two (2) continuous hours, between the hours of 9:00 a.m. and 5:00 p.m., expect on Sundays or during special community events, at the following locations:
Location Limits
Third Avenue Balsam Street to Gumwood Street, both sides Division St to Ash St, both sides
Third Avenue Pioneer Way to Elder Street, southeast side Ash St to 100 feet west, both sides
10.12.035(B)(2) Four Hour Parking. Parking is prohibited for periods longer than four (4) continuous hours, between the hours of 9:00 a.m. and 5:00 p.m., except on Sunday or during special community events, at the following locations:
Location Limits Alder Street Broadway Avenue to Fourth Avenue, both sides
Ash Street Broadway Avenue to Fourth Avenue, both sides
Balsam Street Broadway Avenue to Third Avenue, both sides
Beech Street Third Avenue to Fourth Avenue, both sides
Broadway Avenue Alder Street to Gumwood Street, both sides
Division Street Broadway Avenue to Fourth Avenue, both sides, Fourth Avenue to Sixth Avenue, west side
Dogwood Street Broadway Avenue to the northwesterly end, entire
area
Elder Street Third Avenue to Fifth Avenue, southwest side
Elm Street Third Avenue to Fourth Avenue, both sides
COML Council Packet 4-9-24, Page 211 of 222
Fifth Avenue Elder Street to Fig Street, southeast side
Fig Street Fifth Avenue to Wheeler Road, southwest side
Fourth Avenue Alder Street to Beech Street, both sides
Ivy Avenue 500 feet south of C Street to Lakeside Drive, west
side
Sinkiuse Square Parking lot
Pioneer Way Parking areas between Third Avenue and Fifth
Avenue, northeasterly of Pioneer Way, and southwesterly of Elder Street
10.12.035(E) Accessible Parking. Parking is prohibited at all times upon the following named streets;
expect for vehicles with special parking privileges from the Washington State Department of Licensing, which vehicles are authorized to park for no more than two (2) four (4) consecutive hours, between the hours of 9:00 a.m. and 5:00 p.m., except on Sunday or during special community events, and which vehicles must display all special parking privileges as required by state law:
Street Limits
A Street Marked accessible parking space 110 feet west of Lakeside Drive, south side
Ash Street First two (2) marked accessible parking spaces
southeast of Third Avenue, northeast side
Beech Street First marked accessible space northwest of Fifth Avenue, southeast side
Gumwood Street First two (2) marked accessible parking spaces
northwest of Fourth Avenue, northeast side
Sixth Avenue Two (2) marked accessible parking spaces at the curb ramp 123 feet southwest of Beech Street, southeast
side
Third Avenue First marked accessible parking space southwest of Alder Street, northwest side
Section 2. Effective Date. This ordinance shall take effect and be in force five (5) days after its passage
and publication of its summary as provided by law.
Adopted by the City Council of the City of Moses Lake, WA and signed by its Mayor on April 9, 2024.
COML Council Packet 4-9-24, Page 212 of 222
______________________________________
Dustin Swartz, Mayor
ATTEST:
________________________________ Debbie Burke, City Clerk
APPROVED AS TO FORM:
__________________________________ Katherine L. Kenison, City Attorney
Martinez Swartz Myers Fancher Madewell Lombardi Skaug
Vote:
Date Published: April 15, 2024
Date Effective: April 20, 2024
COML Council Packet 4-9-24, Page 213 of 222
Council Staff Report
To:Agenda Item Number:
From Department
For Agenda of:Proceeding Type
Subject
Reviewed and Approved by:
Expenditure Required:Amount Budgeted:Appropriation Required:
Action Requested
Packet Attachments (if any)
Overview
Fiscal and Policy Implications
Kevin Fuhr, City Manager 15277
Madeline Prentice, Director Finance
4/9/2024 New Business
Cost of Service Rate Study - Water and Wastewater
City Manager City Attorney
Community Development Finance
Fire Human Resources
Parks, Rec, & Cultural Services Police
Public Works Technology Services
107,555.00$0.00$107,555.00$
Staff recommends Council move to execute contract with FCS Group to conduct a Water and Wastewater cost
of service rate study.
FCS Group - Water and Sewer Cost of Service Rate Study.pdf 209.02KB
In preparation for future water and wastewater revenue bond issues, the City's bond counsel has advised that
the City will need to have a current water and wastewater rate study completed. Staff contacted the firm that
completed the previous rate study for the City in 2019 to request a proposal. FCS Group has submitted the
attached proposal for a water and wastewater cost of service rate study.
The quote for the study is $107,555, which includes six staff-level review meetings, up to five Council
workshops/presentations (2 onsite, 3 remote), up to five rate structure alternatives per utility for multiple
customer classes (residential, multi-family, commercial, industrial, irrigation, churches/schools/hospitals,
agricultural, etc.), a rate calculator and documentation to include a water and wastewater rate modeling toolset.
The contract amount will be reduced if the City does not require all five workshops/presentations or requests
less than five rate structure alternatives per utility.
The project cost is $107,555 which is not currently budgeted. If Council approves payment of the final
water/wastewater revenue bond using bond reserve funds, there will be sufficient available funds in the 2024
water and wastewater budgets to pay for the cost of the rate study as proposed.
Options and Results
COML Council Packet 4-9-24, Page 214 of 222
Approve, Authorize, or Adopt:
Provide Amended Direction:
No Action Taken:
Authorize staff to execute a water and wastewater cost of service rate study contract with FCS Group.
Staff will bring back options for recommended changes.
A contract will not be executed, and the cost-of-service rate study will be deferred to a later date.
COML Council Packet 4-9-24, Page 215 of 222
Firm Headquarters
Redmond Town Center
7525 166th Ave NE, Ste D-215
Redmond, Washington 98052
Established in 1988
Washington | 425.867.1802
Oregon | 503.841.6543
Colorado | 719.284.9168
CITY OF MOSES LAKE
WATER AND SEWER COST OF SERVICE RATE STUDY
FCS GROUP is pleased to submit to the City of Moses Lake (City) this proposed scope of services
and budget to complete a Water and Sewer Cost of Service Rate Study. The scope of service has been
developed to support the City’s upcoming bond issue along with addressing other needs discussed
during the March 19th, 2024, call with Madeline Prentice, Finance Director.
The cost-of-service rate study will generate a pricing structure and financial plan that satisfies the
long-term obligations of each utility and establish a blueprint for achieving revenue stability,
sufficiency, and equitable cost-based utility rates. Our approach offers transparency in
documentation, collaboration with staff and clear communication with the City Council on policy
considerations.
The tasks noted below will be completed for each utility in tandem.
TASK PLAN
Task 1 | Initial Project Meeting
An initial project meeting will be scheduled at the commencement of the project with the consultant
and the City project team. Preferred meeting participants include a representative from departments
that can address issues related to finance, engineering, operations, customer service, and
administration.
The intent of the meeting is to confirm the goals and objectives of the overall rate study and focus the
efforts of the project team. The items covered at the meeting include reviewing the scope of work;
identifying project objectives, expectations, and deliverables; outlining the project schedule and key
milestone review points; and discussing appropriate lines of communication.
Deliverables
⚫Project schedule with task completion and key milestone review points.
⚫Identification of project team communication leads.
⚫Schedule standing bi-weekly project meetings.
Task 2 | Data Collection
A data needs list will be provided encompassing historical and projected revenue, expenses, fiscal
policies, capital plans, fund balances, comprehensive planning documents, and customer billing data.
The data will be reviewed, analyzed, and validated for inclusion in the study process.
Deliverables
⚫Data needs list covering the financial, engineering, and customer usage data required to complete
the study.
COML Council Packet 4-9-24, Page 216 of 222
City of Moses Lake April 2024
Water and Sewer Cost of Service Rate Study page 2
www.fcsgroup.com
Task 3 | Customer Statistics Validation
This task includes a detailed customer billing statistics validation and reconciliation. Individual
customer data including number of accounts, meter size, usage patterns (annual use, peak use, etc.)
will be evaluated and validated against actual revenues collected. This revenue reconciliation will
identify anomalies to be corrected prior to developing future revenue and customer counts and use /
demand projections. Validation of the customer statistics data set with customer demands and
revenue generation is critical to the rate study as it establishes the foundation for all of the major
analytical phases (revenue requirement, cost of service and rate design).
Deliverables
⚫Validated and reconciled customer usage data that serves as the primary inputs for the study.
⚫Validated customer statistics with demand and revenue generation.
⚫Demand profiles that tie to revenue projections.
⚫Revenue forecast by customer class.
Task 4 | Revenue Requirement Financial Plan
The initial technical component in the cost-of-service rate study process involves development of the
multi-year financial plan (up to 20-years) ensuring it meets the financial obligations of each utility
through the generation of sufficient, sustainable revenue. Annual cash flow needs are developed by
identifying expenses incurred to operate and manage each system including:
⚫Capital investment funding (improvements, expansion, and replacement)
⚫Expenses incurred for operation, maintenance, and administration of each system
⚫Debt repayment
⚫Cash flow needs
⚫Fiscal policy achievement
Revenue requirement task components are as follows:
▪Identify demand trends using the validated customer statistics in Task 3. Projected revenue will
consider the sensitivities of changes in customer and demand growth related to economic and
weather variables in order to mitigate volatility and stabilize revenue.
▪Develop a forecast of other revenue and operating expenses. Adjust for any known future
changes in annual non-capital costs associated with the operation, maintenance, and
administration of each system. Changes may include additional staffing needs and other
operating costs associated with maintaining the systems along with initiating new or
enhanced program activities.
▪Incorporate the most recent capital plans identifying the capital projects required for system
maintenance, repair, growth, and regulatory compliance. Develop a capital funding analysis
that balances available funding from rate revenue, reserve funds, contributions, and
additional debt, if needed.
▪Evaluate the level of annual system reinvestment funding. Develop a target level for
consideration based on depreciation expense and/or unfunded liability. Calculate the financial
impact on rate levels of incorporating this target.
COML Council Packet 4-9-24, Page 217 of 222
City of Moses Lake April 2024
Water and Sewer Cost of Service Rate Study page 3
www.fcsgroup.com
▪Include existing and any anticipated new debt issues in the revenue requirement along with
monitoring required debt service coverage ratios.
▪Provide a fiscal policy review that compares existing policies to industry standards to
determine whether there are possible enhancements that would strengthen the financial health
of the systems. We will recommend new policies or benchmark ratios, as warranted.
▪Develop a fund balance tracking analysis to track existing City water and sewer funds. The
analytical module will include annual inflows and outflows of funds and monitor target
balances for compliance with established fiscal policies.
▪Develop the annual baseline multi-year rate strategy to fully fund each system’s obligations
and smooth financial impacts. The baseline analysis will test the sufficiency of each system’s
current revenues in meeting all system obligations. Rate revenue sufficiency will be tested from
two perspectives: the ability to meet all cash obligations, and the attainment of any debt coverage
requirements.
▪Design a rate implementation strategy over the multi-year planning horizon that provides
smooth and moderated impacts to ratepayers.
▪Develop up to three (3) rate scenarios to evaluate the impact of changes to key variables
based on changes in economic assumptions, growth rates, capital costs, or other factors of
interest to the City.
▪Deliver an electronic copy of the financial planning models for internal use.
Deliverables
⚫Fiscal policy evaluation.
⚫Multi-year water and sewer 20-year financial plan.
⚫Capital funding plan and scenario development.
⚫Annual rate implementation strategy.
⚫Up to three (3) rate implementation scenarios.
Task 5 | Cost of Service (COS) Analysis
The cost-of-service analysis establishes a defensible basis for assigning “cost shares” and
establishing “equity” for system customers based on industry standard methodologies that are
tailored to the City’s unique water and sewer system and customer characteristics.
The COSA develops a series of functional allocations that distribute cost pools to classes of
customers linked to a proportionate share of costs required to serve their demand. Specific
consideration will be given to total utility costs in relationship to the functions identified below.
Exhibit 1: Cost of Service allocations
Water Functions Sewer Functions
Customer Customer
Base capacity (average demand) Flow Collection
Peak capacity (peak demand) Strength (BOD/TSS)
Fire
COML Council Packet 4-9-24, Page 218 of 222
City of Moses Lake April 2024
Water and Sewer Cost of Service Rate Study page 4
www.fcsgroup.com
The cost-of-service results will identify the cost to serve each customer class of the water and sewer
systems. The City has requested additional classes be evaluated as part of the study process including
industrial, multi-family, irrigation, non-profit/governmental, agriculture. The results will identify any
warranted shifts in cost burden that could improve equity between customer classes from the existing
rate structure. It also identifies the unit cost for each cost category (e.g., base, peak, fire, customer,
strength, etc.) ultimately providing the cost justification for each element of the City’s rate structure,
ensuring a sound nexus between cost causation and rates charged.
Deliverables
⚫Evaluation of additional customer classes identified by the City.
⚫Water and sewer utility class-based equity evaluation.
⚫Cost based unit costs by function, class, and/or service level.
⚫COSA phase-in, if warranted.
Task 6 | Rate Design
The rate design process involves developing rates (including both fixed and variable charges) for
each customer class that recovers its allocated cost. In addition to serving as a mechanism for cost
recovery, the City’s rate structures are a valuable tool for promoting key objectives such as revenue
stability, conservation, and affordability. Recognizing that the City’s prioritization of these
objectives can change over time, this task includes the selection and development of up to five (5)
alternative rate structures per utility. The rate alternative will be designed to generate sufficient
revenue to meet the revenue requirement forecast and address any material inequities identified in the
COSA findings. In addition, rate designs will be consistent with the City’s fiscal policies and billing
system capabilities.
We will work with the City to determine what specific rate design changes may be warranted. The
initial discussion with city staff has indicated the desire to review and evaluate the following:
⚫Commercial and industrial rate structures
⚫Residential tiered rate blocks
⚫Others identified by the City.
As part of the rate design task, an affordability assessment will be performed to understand the
impact of any rate design changes on lower income brackets. Looking at the typical metric of median
household income, in addition to the emerging City-specific metrics related to Hours at Minimum
Wage (HM), this additional metric will provide an additional measure of affordability of rate changes
under consideration.
Deliverables
⚫Up to five (5) rate structure alternatives, per utility, aligned with identified City priorities.
⚫Schedule of water and sewer rates for each class.
⚫Bill impact analysis that shows the number of and degree to which different customers are
impacted by rate design changes.
⚫Affordability analysis.
⚫Comparative survey of sample monthly bills for up to five (5).
COML Council Packet 4-9-24, Page 219 of 222
City of Moses Lake April 2024
Water and Sewer Cost of Service Rate Study page 5
www.fcsgroup.com
Task 7 | Meetings and Presentations
The success of a rate study relies on frequent interaction with the City project team throughout the
project to make certain that the study develops work products collaboratively, reflecting the industry
expertise of the project team and the specific needs and goals of staff and management. This task
includes our attendance at the following:
⚫Up to six (6) project review meetings with City staff at key milestone review points (2-onsite and
4 remote).
⚫Five (5) workshops/presentations with the City Council (including development of presentation
material) conducted in a workshop or work session format to maximize interaction and
collaboration. Two (2) meetings onsite with the remaining three (3) virtual. Tentative City
Council meetings will cover the following:
▪Up to three (3) workshops to discuss rate study findings at key milestones.
▪One (1) workshop will present preliminary results and recommendations for the cost-of-
service rate study. Discussion and obtain input for final recommendations.
▪One (1) Workshop to present final water and sewer cost of service rate study
recommendations.
The study has assumed both onsite and remote meetings/presentations to minimize budget. The
project principal will attend project review meetings onsite with the remainder of the team remote.
We will work with the City to determine the preferred remote platform. We are happy to provide
additional meetings upon requested. The additional meetings will be billed on time and materials.
Deliverables
⚫Six (6) staff-level review meetings at key milestone review points
⚫Five (5) Council presentations, including presentation materials
Task 8 | Documentation
A written report documenting the cost-of-service rate study process, methodology, key assumptions,
results, and recommendations. The electronic water and sewer rate modeling toolset will provide the
detailed technical exhibits referenced in the report. The City will have both a document that outlines
the rate study process and a rate setting toolset for future reference and use.
This task also includes the development of a rate calculator to show the water and sewer monthly rate
impacts of the preferred rate design alternatives specific to customer selected and input data. The rate
calculator will be developed for both water and sewer rates with identification of change in total
monthly bill.
Deliverables
⚫Rate calculator for water and sewer monthly bill impacts.
⚫Electronic copy of the draft and final report.
⚫Water and sewer rate modeling toolset.
COML Council Packet 4-9-24, Page 220 of 222
City of Moses Lake April 2024
Water and Sewer Cost of Service Rate Study page 6
www.fcsgroup.com
SCHEDULE
A comprehensive study such as this generally takes six to nine months to complete. Completion of
the analysis is based on a variety of issues. These issues include timeliness of receipt of requested
data/information; quality of data; ability to schedule meetings in a timely manner; and the ability of
the City to provide policy direction for the study to move forward at key study milestones. The City
has expressed the desire to prioritize completion of the water and sewer revenue requirement as the
information is needed to support the City’s upcoming bond financing. A specific project schedule
that meets the City’s needs will be developed during the initial project meeting.
BUDGET
The total proposed level of effort to complete the Water and Sewer Cost of Service Rate Study is
$107,555 (summarized in detail below). The technical tasks total $68,280 (64%) with the process
tasks totaling $39,275 (36%). The process tasks such as workshops/presentations and documentation
may be scaled back as needed to accommodate budget limitations.
Our normal billing practice is to bill based on actual time and materials expended, not to exceed the
total budget. We would be more than happy to negotiate the appropriate level of effort for this project
if we have scaled our approach out of line with the City’s needs and/or expectations. We have
provided the budget by major task to allow the City the flexibility to add or delete tasks as needed
COML Council Packet 4-9-24, Page 221 of 222
City of Moses Lake April 2024
Water and Sewer Cost of Service Rate Study page 7
www.fcsgroup.com
Exhibit 1: Water and Sewer Cost of Service Rate Study Budget
The budget associated with this scope of services is valid until 12/1/2024.
Total
FCS GROUP FCS GROUP Admin.Estimated Labor
Task Principal Consultant Support Hours Budget
Project Initiation
Task 1 :Initial Project Meeting (remote)2 2 4 $1,010
Task 2 : Data Collection (both utilities)2 6 8 1,810
Water Cost of Service Rate Study
Task 3 : Customer Statistics Validation 1 30 31 $6,305
Task 4 : Revenue Requirement Financial Plan (3 scenarios)8 40 48 10,440
Task 5 : Cost of Service Analysis (additional customer classes)8 36 44 9,640
Task 6 : Rate Design (5 alternatives)16 36 52 12,080
Total Water Cost of Service Rate Study 33 142 - 175 $38,465
Sewer Cost of Service Rate Study
Task 3 : Customer Statistics Validation 1 24 25 $5,105
Task 4 : Revenue Requirement Financial Plan (3 scenarios)6 24 30 6,630
Task 5 : Cost of Service Analysis (additional customer classes)4 34 38 8,020
Task 6 : Rate Design (5 alternatives)8 24 32 7,240
Total Sewer Cost of Service Rate Study 19 106 - 125 $26,995
Project Meetings/Presentations/Documentation
Task 7: Meetings and Presentations
- Six (6) Project Review Meetings - 2 onsite; 4@1hr 16 8 - 24 $6,480
- Workshop #1 - Revenue Requirement results (materials)4 8 12 2,820
- Workshop #2 - Cost of Service Results (materials)4 8 12 2,820
- Workshop#3 - Rate Design Results (materials)4 8 12 2,820
- Workshop#4 - Draft Full Study Results/Recomm. (materials)4 12 16 3,620
- Workshop#5 - Final Full Study Results/Recomm. (materials)4 6 10 2,420
- Workshop Presentations (2 onsite - meeting/travel time)12 3 15 4,260
Task 8: Documentation - (written report and rate models)6 34 40 8,630
- Rate Calculator 2 16 18 3,810
Project Administration (initiation, administration, billing)9 9 945
TOTAL LABOR ALL 112 359 9 480 106,905$
Expenses (mileage - 4 onsite meetings)650$
TOTAL BUDGET ALL (Labor and Expenses)112 359 9 480 107,555$
CONSULTANT HOURS
COML Council Packet 4-9-24, Page 222 of 222