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FINAL 2020 1124 Council Agenda PacketMoses Lake City Council David Curnel, Mayor | Daryl Jackson, Deputy Mayor | Mike Riggs, Council Member | Karen Liebrecht, Council Member Don Myers, Council Member | David Eck, Council Member| Dean Hankins, Council Member REMOTE ACCESS ONLY Citizens can join this meeting via phone by calling the numbers listed at the bottom of the agenda or by audio only option online: https://cityofml.zoom.us/j/95160346024 Tuesday, November 24, 2020, 7 PM Regular Meeting Agenda Call to Order – 7 p.m. Roll Call Pledge of Allegiance Approval of the Agenda Summary Reports: Mayor’s Report Additional Business City Manager’s Report - Interim Parks Director Appointment – Susan Schwiesow -Grant County Solid Waste Advisory Committee Vacancy - COVID Update - Aspect Consulting Contract Amendment Motion Citizen’s Communications - Citizens who would like to address the Council can submit written comments to the City Clerk no later than 3 p.m. on the day of the meeting. Comments will be provided to Council electronically and recorded in the meeting minutes. Citizens who would like to speak on matters during the meeting will need to contact the City Clerk no later than 3 p.m. on the day of the meeting and provide the name or number you will use to access the virtual meeting. There will be a five-minute limit per speaker. Moses Lake Council Packet 11-24-20, Page 1 of 79 November 24, 2020, City Council Meeting – Page 2 Consent Agenda 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. #1 pg 4 a.City Council Meeting Minutes Dated November 10, 2020 b.Claims and Payroll c.Emergency Solutions Grant – COVID-19 Sub-Recipient Agreement d.Moses Lake Industries Industrial Waste Discharge Permit No. 10 Public Hearing - Citizens who would like to speak on this matter during the meeting will need to contact the City Clerk no later than 3 p.m. on the day of the meeting and provide the name or number you will use to access the virtual meeting. #2 Motion pg 49 2021 Budget Ordinance 2960 – Second Presentation Presented by Cindy Jensen, Finance Director Summary: Hear from public, conclude hearing, and consider adoption Old Business – None Scheduled New Business #3 #4 Motion pg 56 2020 Budget Adjustment Ordinance – First Presentation Presented by Cindy Jensen, Finance Director Summary: Council to review and discuss pg 63 WSDOT Airport Fuel Station Loan Agreement Resolution 3835 Presented by Fred Snoderly, Municipal Services Director Summary: Council to review and consider adoption Administrative Reports - Municipal Court Clerk Status - Grant County Conservation District Annexation Status Moses Lake Council Packet 11-24-20, Page 2 of 79 November 24, 2020, City Council Meeting – Page 3 Council Communications and Reports -Council Ad Hoc Homelessness Committee Update Executive Session -Litigation pursuant to RCW 42.30.110(1) subsection (i) Adjournment Zoom Meeting – Audio Only Please click the link below to join the webinar: https://cityofml.zoom.us/j/95160346024 Or iPhone one-tap : US: +12532158782,,95160346024# or +13462487799,,95160346024# Or Telephone: Dial(for higher quality, dial a number based on your current location): US: +1 253 215 8782 or +1 346 248 7799 or +1 669 900 9128 or +1 646 558 8656 or +1 301 715 8592 or +1 312 626 6799 Webinar ID: 951 6034 6024 International numbers available: https://cityofml.zoom.us/u/ab0HCgDKYx Moses Lake Council Packet 11-24-20, Page 3 of 79 MOSES LAKE CITY COUNCIL November 10, 2020 CALL TO ORDER The regular meeting of the Moses Lake City Council was called to order at 7:00 p.m. by Mayor Curnel via audio only remote access. Special notices for attendance and citizen comment were posted on the meeting agenda. ROLL CALL Present: Mayor Curnel, Deputy Mayor Jackson; Council Members Eck, Riggs, Liebrecht, Myers, and Hankins. PLEDGE OF ALLEGIANCE Mayor Curnel led the Flag Salute. AGENDA APPROVAL Action taken: Council Member Riggs moved to approve the Agenda, second by Deputy Mayor Jackson. The motion carried 7 – 0. SUMMARY REPORTS MAYOR’S REPORT Veterans Day Proclamation Mayor Curnel issued a proclamation for special recognition to Veterans on November 11. He also acknowledged Deputy Mayor Jackson, Council Members Hankins and Eck, and himself along with the staff who are Veterans. Additionally, today is the 245th Marine Corps birthday. CITY MANAGER’S REPORT Homeless Sleeping Center The Center original opening of November 16 has been delayed pending installation of the office unit, shower unit, and electrical work. The current opening date will be December 1, or sooner if possible. County Landfill Rate Increase Grant County Commissioners have increased the tipping fee to a one-time $437,000. Due to an already anticipated increase, half of the fees were already budgeted. However, this significant increase will cause a rate change for customers. Grant County Health District (GCHD) 2021 Funding GCHD Administrator Theresa Adkinson submitted a request asking for consideration of an increase from $2 to $3 per resident for 2021 services in the community. Action taken: Council Member Eck moved to have the funding remain at $2, second by Council Member Hankins. The motion carried 7 – 0. Moses Lake Council Packet 11-24-20, Page 4 of 79 CITY COUNCIL MINUTES – November 10, 2020 pg. 2 CONSENT AGENDA #1 a. City Council meeting minutes dated October 24 and 27, 2020 b. Claim Checks 149856 through 150010 in the amount of $1,948,144.60; Payroll Checks 63564 through 63579 in the amount of $15,620.80; and Electronic Payments dated October 30, 2020, in the amount of $436,696.71 c. Surf ‘N Slide Water Park Pool Lining Contract Action taken: Council Member Eck moved to approve the Consent Agenda, second by Council Member Riggs. The motion carried 7 – 0. PUBLIC HEARINGS #2 Property Tax and Excess Levy Resolutions 3832 and 3833 RCW 35A.33.135 requires Council to annually adopt a resolution establishing the amount to be raised by property tax revenue for the ensuing fiscal year. This tax makes up about 28% of the total of General Fund revenues to support public safety and street operations. The 1% increase in the levy only generates $102,230, but just the increase in Police and Fire budgets as the result of bargained settlements adds almost $180,000 to the 2021 budget. With COVID threatening to reduce other General Fund revenues, it is prudent to declare substantial need and increase the property tax levy by the full 1%. Staff explained that the percentage rate adjustment bring collection to same currently received. Mayor Curnel opened the public hearing at 7:20 p.m. There was no public testimony, and the hearing was closed. Action taken: Council Member Hankins moved to adopt Resolution 3832 as presented, second by Council Member Riggs. The motion carried 7 – 0. Action taken: Deputy Mayor Jackson moved to adopt Resolution 3833 as presented, second by Council Member Eck. The motion carried 7 – 0. #3 2021 Budget Ordinance 2960 – First Presentation Council and staff reviewed the first draft of the Preliminary Budget during a workshop held on Saturday, October 24. The updated document was distributed and posted online the following week. City Manager Allison Williams provided a PowerPoint presentation to highlight key dates in the process, budget priorities, considerations, summary of total budget, and staff changes. Mayor Curnel opened the public hearing at 7:39 p.m. There was no public testimony, and the hearing was continued to November 24. Council discussed the October 27 funding recommendations regarding fireworks from the Lodging Tax Advisory Committee. Action taken: Council Member Liebrecht moved to approve a one-time funding in 2021 for the Freedom Fest Firework Show in the amount of $50,000 from the City’s distribution of the lodging tax funds, second by Council Member Myers. The motion carried 7 – 0. Moses Lake Council Packet 11-24-20, Page 5 of 79 CITY COUNCIL MINUTES – November 10, 2020 pg. 3 NEW BUSINESS #4 Moses Lake Community Coalition Partnership Request Staff received a request for an annual contribution of $10,000 that could be allocated from the liquor/marijuana tax proceeds. The funding would strengthen the Coalition’s leadership and guidance in providing drug abuse and resistance education to area youth. Council requested that staff invite them to provide a presentation at a future Council meeting before the contribution request will be considered. #5 Annexation Moratorium Resolution 3834 The resolution will put a temporary pause on the acceptance and processing of new annexation petitions to allow staff time to process the current requests, assess annexation costs and the impact on resources as well as evaluate the annexation process. The moratorium will remain until Council has approved the updated Comprehensive and Capital Facilities Plans in June 2021. Action taken: Deputy Mayor Jackson moved to adopt Resolution 3834, second by Council Member Hankins. The motion carried 7 – 0. #6 3086 Westshore Drive Request to Connect Sewer Caroline and Bill Casey request approval to connect to the City’s sewer system to serve parcel #120293202. Action taken: Council Member Eck moved to approve the request to connect to City sewer at 3086 Westshore Dr with an extraterritorial agreement, second by Council Member Riggs. The motion carried 7 – 0. ADMINISTRATIVE REPORTS 3rd Quarter Financial Report Finance Director Cindy Jensen provided the 3rd Quarter Financial Report in the meeting packet. The revenue totals are better than expected since the unprecedented COVID-19 pandemic quarantines have been in place. Stratford and Valley Rd. Projects Municipal Services Director Fred Snoderly reported that there will be a delay in completion due to shut down of factories during the COVID-19 pandemic. The signal pole bases are due to be installed in the new wider lanes mid-to-late December, followed by heads and masts, with final re-paving in March of 2021. COUNCIL COMMUNICATIONS AND REPORTS Council Member Liebrecht thanked Finance Director Cindy Jensen for the work on the budget document. Council Member Eck thanked Community Development Director Melissa Bethel for her efforts with the Comp Plan Update. Moses Lake Council Packet 11-24-20, Page 6 of 79 CITY COUNCIL MINUTES – November 10, 2020 pg. 4 Council Member Riggs reported that the LEOFF1 Disability Board met and processed three claims that they received for reimbursement. Deputy Mayor Jackson requested that JMUSA (Joint Utility Municipal Services Authority) be put back on the agenda for discussion. Mayor Curnel also wanted to thank the Finance Director Cindy Jensen and all directors for the self-explanatory budget. It was one of the easiest budget sessions he had attended to date. EXECUTIVE SESSION Mayor Curnel called an Executive Session at 8:17 p.m. to be held for 30 minutes pursuant to RCW 42.30.110(1) subsections (g) and (i) to discuss performance of a public employee and litigation with Council action to follow. Action taken: Council Member Hankins moved to ratify and authorize the City Manager to execute documents resolving litigation as discussed in Executive Session, second by Deputy Mayor Jackson. The motion carried 7 – 0. ADJOURNMENT The regular meeting was adjourned at 8:52 p.m. ______________________________________ David Curnel, Mayor ATTEST____________________________ Debbie Burke, City Clerk Moses Lake Council Packet 11-24-20, Page 7 of 79 To: Allison Williams, City Manager From: Cindy Jensen, Finance Director Council Meeting Date: November 24, 2020 Proceeding Type: Consent Agenda Subject: Semi-Monthly Disbursement Report The following amounts were budgeted and sufficient funds were available to cover these payments: Claim Checks 150011 - 150178 $1,355,753.92 Payroll Checks 0063580 - 0063589 $12,195.46 Electronic Payments Payroll ACH –11/13/2020 $446,813.09 Summary 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 has 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 its processes to ensure appropriate internal controls are in place. Moses Lake Council Packet 11-24-20, Page 8 of 79 Moses Lake Council Packet 11-24-20, Page 9 of 79 Moses Lake Council Packet 11-24-20, Page 10 of 79 Moses Lake Council Packet 11-24-20, Page 11 of 79 Moses Lake Council Packet 11-24-20, Page 12 of 79 Moses Lake Council Packet 11-24-20, Page 13 of 79 Moses Lake Council Packet 11-24-20, Page 14 of 79 Moses Lake Council Packet 11-24-20, Page 15 of 79 Moses Lake Council Packet 11-24-20, Page 16 of 79 Moses Lake Council Packet 11-24-20, Page 17 of 79 Moses Lake Council Packet 11-24-20, Page 18 of 79 Moses Lake Council Packet 11-24-20, Page 19 of 79 Moses Lake Council Packet 11-24-20, Page 20 of 79 Moses Lake Council Packet 11-24-20, Page 21 of 79 Moses Lake Council Packet 11-24-20, Page 22 of 79 Moses Lake Council Packet 11-24-20, Page 23 of 79 Moses Lake Council Packet 11-24-20, Page 24 of 79 Moses Lake Council Packet 11-24-20, Page 25 of 79 Moses Lake Council Packet 11-24-20, Page 26 of 79 Moses Lake Council Packet 11-24-20, Page 27 of 79 Moses Lake Council Packet 11-24-20, Page 28 of 79 Page 1 of 2 STAFF REPORT To: Allison Williams, City Manager From: Melissa Bethel, Community Development Director Date: November 16, 2020 Proceeding Type: Consent Agenda Subject: Emergency Solutions Grant-COVID-19 Sub Recipient Agreement Legislative History: •First Presentation: November 24, 2020 •Second Presentation: •Action: Motion Overview The Mayor and City Council have taken a number of actions with the respect to being an active participant in the delivery of services to the homeless population. In December 2019, the Council held a work session with the providers of services in an effort to understand the work being done to assist the homeless and chronically homeless populations in Moses Lake. In May 2019, the City Council passed Resolution 3764 electing to have the City operate its own homeless program and on August 13, 2019, the City Council passed Resolution 3774 declaring the City’s intent to authorize a sales and use tax for affordable and supportive housing. In May of 2020, City Council authorized the City Manager to contract for homeless services. With the onset of the COVID pandemic, Grant County received $388,000 to create a plan for the identification of, housing of, and quarantining of populations that are at risk. The plan needed to be signed off on by the Public Health Officer. The funding was intended to create additional emergency shelter space, increase access to sanitation and hygiene, and address the costs of the displacement. The plan needed to be done in partnership with the largest city. As a result of the effort, the City has developed the first phase of a plan for the chronically homeless and a request for proposals was issued for a qualified non-profit as a partner in an initial and long term plan to provide a progressive response to the housing need for those most at risk in Moses Lake. HopeSource was granted the Sub- Grantee contract to provide homeless outreach and services in alignment with the Guidelines of the COVID-19 Grant Funding. The City has implemented a Sleeping Center, set to open in December. New funding opportunities have been explored and through Grant County, the City of Moses Lake will utilize funds through the Department of Commerce Emergency Solutions Grant, and the remainder of the COVID-19 Grant Funds to provide for the operations of the Sleeping Center. The Moses Lake Council Packet 11-24-20, Page 29 of 79 Page 2 of 2 interlocal agreement with Grant County would provide approximately $1.45 million in funding for the programs through June of 2022. Fiscal and Policy Implications No fiscal impact. All funding is provided through Grant Funds received through Grant County from the Department of Commerce. Council Packet Attachments A. Emergency Solutions Grant-COVID-19 Sub Recipient Agreement Finance Committee Review Legal Review N/A Options Option Results • Authorize Interlocal Agreement as presented City Council authorizes City Manager to execute the interlocal agreement. • Provide staff with changes City Council requests changes be made before authorization. • Take no action. The City will lose the opportunity to receive the Grant Funds from Grant County. Action Requested Staff requests the City Council consider authorization for the City Manager to execute the interlocal agreement. Moses Lake Council Packet 11-24-20, Page 30 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 1 HOUSING ASSISTANCE UNIT COMMUNITY SERVICES AND HOUSING DIVISION EMEREGENCY SOLUTIONS GRANT-COVID 19 (ESG-CV) AMENDED SUB RECIEPENT GRANT THIS AGREEMENT is made and entered into by and between GRANT COUNTY, WASHINGTON ("COUNTY"), duly organized and operating under and by virtue of the Constitution and the laws of the State of Washington, and the CITY OF MOSES LAKE, ("SUB RECIPIENT''), collectively referred to as the “Parties.” In consideration of the mutual benefits and covenants contained herein, the parties agree as follows: 1. DURATION OF AGREEMENT The term of this Emergency Solutions Grant-COVID 19 Agreement on Washington State Department of Commerce Grant #20-4613C-100 shall begin on July 15, 2020, and shall terminate on June 30, 2022. 2. SERVICES PROVIDED BY THE SUB RECIPIENT The SUB RECIPIENT represents that it is qualified and possesses the necessary expertise, knowledge, training, and skills, and has the necessary licenses and/or certification to perform the services set forth in this Agreement. The SUB RECIPIENT shall perform the following services: Provide resources to prevent, prepare for and respond to the Coronavirus pandemic (COVID-19) among individuals who are homeless or receiving homeless assistance; and to support additional homeless assistance and homeless prevention activities to mitigate the impacts of COVID-19. a. A description of the services to be performed by the SUB RECIPIENT is set forth in Exhibit A. b. The SUB RECIPIENT agrees to provide its own labor and materials. Unless otherwise provided for in the Agreement, no material, labor, or facilities will be furnished by the COUNTY. c. The SUB RECIPIENT shall perform according to standard industry practice of the work specified by this Agreement. d. The SUB RECIPIENT shall complete its work in a timely manner and 111 accordance with the schedule agreed to by the parties. Moses Lake Council Packet 11-24-20, Page 31 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 2 e. The SUB RECIPIENT shall, from time to time, during the progress of the work, confer with the COUNTY. At the COUNTY'S request, the SUB RECIPIENT shall prepare and present status reports on its work. f. The SUB RECIPIENT shall be in compliance with the Department of Commerce Emergency Housing Grant Guidelines attached hereto as Exhibit A and/or as may be updated by the Department of Commerce, with such guidelines fully incorporated herein by reference. SPECIFICALLY, SUB RECIPIENT is required to collect verification of homelessness and income to determine the eligibility of persons served as set forth in Exhibit A, Emergency Housing Grant Guidelines. 3. SERVICES PROVIDED BY THE COUNTY In order to assist the SUB RECIPIENT in fulfilling its duties under this Agreement, the COUNTY shall provide the following: a. Relevant information as exists to assist the SUB RECIPIENT with the performance of the SUB RECIPIENT'S services. b. Coordination with other County Departments or other Consultants as necessary for the performance of the SUB RECIPIENT'S services. c. Services documents, or other information identified in Exhibit A. 4. AGREEMENT REPRESENTATIVES Each party to this Agreement shall have a contract representative. Each party may change its representative upon providing written notice to the other party. The parties' representatives are as follows: For COUNTY: For CITY: Janice Flynn Administrative Services Coordinator Board of County Commissioners Grant County Courthouse P,O. Box 37 Ephrata WA 98823-0037 Allison Williams City of Moses Lake 401 S. Balsam Street PO Drawer 1579 Moses Lake, WA 98837 Moses Lake Council Packet 11-24-20, Page 32 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 3 5. COMPENSATION a. For services performed hereunder, the SUB CONTRACTOR shall be paid, on a fixed basis concerning the term of this Agreement, defined herein as July 15, 2020 to June 30, 2022, from those rates/funds set forth in State Contract #316-46108-10, a copy of the same attached hereto as Exhibit B and incorporated herein by reference. The maximum total amount payable by the COUNTY to the SUB RECIPIENT under this Agreement shall not exceed $1,458,768, or as may be amended by the Department of Commerce; • PROVIDED: Administrative costs of $3,000.00 incurred by the COUNTY will be reimbursed out of grant funds as set forth below: b. No payment shall be made for any work performed by the SUB RECIPIENT, except for work identified and set forth in this Agreement or supporting exhibits or attachments incorporated by reference into this Agreement. c. The SUB RECIPIENT may submit invoices to the COUNTY not more often than once per month during the progress of the work for partial payment of work completed to date. Invoices shall cover the time SUB RECIPIENT performed work for the COUNTY during the billing period. The COUNTY shall pay the SUB RECIPIENT for services rendered in the month following the actual delivery of the work and will remit payment within thirty (30) days from the date of receipt of billing. d. The SUB RECIPIENT shall not be paid for services rendered under the Agreement unless and until they have been performed to the satisfaction of the COUNTY. e. In the event the SUB RECIPIENT has failed to perform any substantial obligation to be performed by the SUB RECIPIENT under this Agreement and such failure has not been cured within ten (10) days following notice from the COUNTY, then the COUNTY may, in its sole discretion, upon written notice to the SUB RECIPIENT, withhold any and all monies due and payable to the SUB RECIPIENT, without penalty until such failure to perform is cured or otherwise adjudicated. "Substantial" for purposes of this Agreement means faithfully fulfilling the terms of the Agreement with variances only for technical or minor omissions or defects. f. Unless otherwise provided for in this Agreement or any exhibits or attachments hereto, the SUB RECIPIENT will not be paid for any billings or invoices presented for payment prior to the execution of the Agreement or after its termination. 6. AMENDMENTS AND CHANGES IN WORK a. In the event of any errors or omissions by the SUB RECIPIENT in the performance of any work required under this Agreement, the SUB RECIPIENT shall make any and all necessary corrections without additional compensation. All work submitted by the SUB RECIPIENT shall Moses Lake Council Packet 11-24-20, Page 33 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 4 be certified by the SUB RECIPIENT and checked for errors and omissions. The SUB RECIPIENT shall be responsible for the accuracy of the work, even if the work is accepted by the COUNTY. b. No amendment, modification or renewal shall be made to this Agreement unless set forth in a written Contract Amendment, signed by both parties and attached to this Agreement. Work under a Contract Amendment shall not proceed until the Contract Amendment is duly executed by the COUNTY. 7. HOLD HARMLESS AND INDEMNIFICATION a. The SUB RECIPIENT shall hold harmless, indemnify and defend the COUNTY, its officers, officials, employees and agents, from and against any and all claims, actions, suits, liability, losses, expenses, damages, and judgments of any nature whatsoever, including costs and attorney's fees in defense thereof, for injury, sickness, disability or death to persons or damage to property or business, caused by or arising out of the SUB RECIPIENT'S acts, errors or omissions or the acts, errors or omissions of its employees, agents, subcontractors or anyone for whose acts any of them may be liable, in the performance of this Agreement. Claims shall include, but not be limited to, assertions that information supplied or used by the SUB RECIPIENT or subcontractor infringes any patent, copyright, trademark, trade name, or otherwise results in an unfair trade practice. PROVIDED HOWEVER, that the SUB RECIPIENT'S obligations hereunder shall not extend to injury, sickness, death or damage caused by or arising out of the sole negligence of the COUNTY, its officers, officials, employees or agents. PROVIDED, FURTHER, that in the event of the concurrent negligence of the parties, the SUB RECIPIENT'S obligations hereunder shall apply only to the percentage of fault attributable to the SUB RECIPIENT, its employees, agents or subcontractors. b. In any and all claims against the COUNTY, its officers, officials, employees and agents by any employee of the SUB RECIPIENT, subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, the indemnification obligation under this Section shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for the SUB RECIPIENT or subcontractor under Worker's Compensation acts, disability benefits acts, or other employee benefits acts, it being clearly agreed and understood by the parties hereto that the SUB RECIPIENT expressly waives any immunity the SUB RECIPIENT might have had under Title 51 RCW. By executing the Agreement, the SUB RECIPIENT acknowledges that the foregoing waiver has been mutually negotiated by the parties and that the provisions of this Section shall be incorporated, as relevant, into any contract the SUB RECIPIENT makes with any subcontractor or agent performing work hereunder. c. The SUB RECIPIENT'S obligations hereunder shall include, but are not limited to, investigating, adjusting and defending all claims alleging loss from action, error or omission, or breach of any common law, statutory or other delegated duty by the SUB RECIPIENT, the SUB RECIPIENT'S employees, agents or subcontractors. Moses Lake Council Packet 11-24-20, Page 34 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 5 8. INSURANCE SUB RECIPIENT shall provide insurance coverage as set out in this section. The intent of the required insurance is to protect the COUNTY should there be any claims, suits, actions, costs, damages or expenses arising from any loss, or negligent or intentional act or omission of SUB RECIPIENT, or it agents, while performing under the terms of this Agreement. The insurance required shall be issued by an insurance company authorized to do business within the State of Washington. Except for Professional Liability or Errors and Omissions Insurance, the insurance shall name the COUNTY, its agents, officers, and employees as additional insureds under the insurance policy. All policies shall be primary to any other valid and collectable insurance. SUB RECIPIENT shall instruct the insurers to give COUNTY thirty (30) calendar days advance notice of any insurance cancellations, non-renewal or modification. SUB RECIPIENT shall submit to COUNTY within fifteen (15) calendar days of the Agreement start date, a certificate of insurance which outlines the coverage and limits defined in this insurance section. During the term of this Agreement, SUB RECIPIENT shall submit renewal certificates not less than thirty (30) calendar days prior to expiration of each policy required under this section. SUB RECIPIENT shall provide insurance coverage that shall be maintained in full force and effect during the term of this Agreement, as follows: Commercial General Liability Insurance Policy. Provide a Commercial General Liability Insurance Policy, including contractual liability, written on an occurrence basis, in adequate quantity to protect against legal liability arising out of Agreement activity but not less than $1,000,000.00 per occurrence. Additionally, SUB RECIPIENT is responsible for ensuring that any subcontractors provide adequate insurance coverage for the activities arising out of subcontracts. Automobile Liability. In the event that performance pursuant to this Agreement involves the use of vehicles, owned or operated by the SUB RECIPIENT, automobile liability is $1,000,000.00 per occurrence, using a Combined Single Limit for bodily injury and property damage. Professional Liability, Errors and Omissions Insurance. SUB RECIPIENT shall maintain Professional Liability or Errors and Omissions Insurance. SUB RECIPIENT shall maintain minimum limits of no less than $1,000,000.00 per occurrence to cover all activities by the SUB RECIPIENT and licensed staff employed by SUB RECIPIENT. COUNTY, its agents, officers, and employees need not be named as additional insureds under this policy. Fidelity Insurance. Every officer, director, employee, or agent who is authorized to act on behalf of SUB RECIPIENT for the purpose of receiving or depositing funds into program accounts or issuing financial documents, checks, or other instruments of payment for program costs shall be insured to provide protection against loss: Moses Lake Council Packet 11-24-20, Page 35 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 6 A. The amount of fidelity coverage secured pursuant to this Agreement shall be $100,000.00 or the highest of planned reimbursement for the Agreement period, whichever is lowest. Fidelity insurance secured pursuant to this paragraph shall name the COUNTY as a beneficiary. B. SUB RECIPIENT shall secure fidelity insurance as noted above. Fidelity insurance secured by SUB RECIPIENT pursuant to this paragraph shall name the COUNTY as beneficiary. C. SUB RECIPIENT shall provide, at COUNTY' s request, copies of insurance instruments or certifications from the insurance issuing agency. The copies of certifications shall show the insurance coverage, the designated beneficiary, who is covered, the amounts, the period of coverage, and that COUNTY will be provided thirty (30) days advance notice of cancellation. 9. TERMINATION a. The COUNTY may terminate this Agreement for convenience in whole or in part whenever the COUNTY determines, in its sole discretion that such termination is in the best interests of the COUNTY. The COUNTY may terminate this Agreement upon giving thirty (30) days written notice by Certified Mail to the SUB RECIPIENT. In that event, the COUNTY shall pay the SUB RECIPIENT for all costs incurred by the SUB RECIPIENT in performing the Agreement up to the date of such notice. Payment shall be made in accordance with Section 5 of this Agreement. b. In the event that funding for this project is withdrawn, reduced or limited in any way after the effective date of this Agreement, the COUNTY may summarily terminate this Agreement notwithstanding any other termination provision of the Agreement. Termination under this paragraph shall be effective upon the date specified in the written notice of termination sent by the COUNTY to the SUB RECIPIENT. After the effective date, no charges incurred under this Agreement are allowable. c. If the SUB RECIPIENT breaches any of its obligations hereunder, and fails to cure the breach within ten (10) days of written notice to do so by the COUNTY, the COUNTY may terminate this Agreement, in which case the COUNTY shall pay the SUB RECIPIENT only for the costs of services accepted by the COUNTY, in accordance with Section 5 of this Agreement. Upon such termination, the COUNTY, at its discretion, may obtain performance of the work elsewhere, and the SUB RECIPIENT shall bear all costs and expenses incurred by the COUNTY in completing the work and all damage sustained by the COUNTY by reason of the SUB RECIPIENT'S breach. If, subsequent to termination, it is determined for any reason that (1) the SUB RECIPIENT was not in default, or (2) the SUB RECIPIENT'S failure to perform was not its fault or its subcontractor's fault or negligence, the termination shall be deemed to be a termination under subsection a of this section. Moses Lake Council Packet 11-24-20, Page 36 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 7 10. ASSIGNMENT, DELEGATION, AND SUBCONTRACTING a. The SUB RECIPIENT shall perform the terms of the Agreement using only its bona fide employees or agents who have the qualifications to perform under this Agreement. The obligations and duties of the SUB RECIPIENT under this Agreement shall not be assigned, delegated, or subcontracted to any other person or firm without the prior express written consent of the COUNTY. b. The SUB RECIPIENT warrants that it has not paid nor has it agreed to pay any company, person, partnership, or firm, other than a bona fide employee working exclusively for SUB RECIPIENT, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. 11. NON-WAIVER OF RIGHTS The parties agree that the excuse or forgiveness of performance, or waiver of any provision(s) of this Agreement does not constitute a waiver of such provision(s) or future performance, or prejudice the right of the waiving party to enforce any of the provisions of this Agreement at a later time. 12. INDEPENDENT CONTRACTOR a. The SUB RECIPIENT'S services shall be furnished by the SUB RECIPIENT as an Independent Contractor and not as an agent, employee or servant of the COUNTY. The SUB RECIPIENT specifically has the right to direct and control SUB RECIPIENT'S own activities in providing the agreed services in accordance with the specifications set out in this Agreement. b. The SUB RECIPIENT acknowledges that the entire compensation for this Agreement is set forth in Section 5 of this Agreement, and the SUB RECIPIENT is not entitled to any County benefits, including, but not limited to: vacation pay, holiday pay, sick leave pay, medical, dental, or other insurance benefits, fringe benefits, or any other rights or privileges afforded to Grant County employees. c. The SUB RECIPIENT shall have and maintain complete responsibility and control over all of its subcontractors, employees, agents, and representatives. No subcontractor, employee, agent or representative of the SUB RECIPIENT shall be or deem to be or act or purport to act as an employee, agent or representative of the COUNTY. d. The SUB RECIPIENT shall assume full responsibility for the payment of all payroll taxes, use, sales, income or other form of taxes, fees, licenses, excises, or payments required by any city, county, federal or state legislation which is now or may during the term of this Agreement be enacted as to all persons employed by the SUB RECIPIENT and as to all duties, activities and requirements by the SUB RECIPIENT in performance of the work on this project and under this Agreement and shall assume exclusive liability therefore, and meet all requirements thereunder pursuant to any rules or regulations. Moses Lake Council Packet 11-24-20, Page 37 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 8 e. The SUB RECIPIENT agrees to immediately remove any of its employees or agents from assignment to perform services under this Agreement upon receipt of a written request to do so from the COUNTY'S contract representative or designee. 13. COMPLIANCE WITH LAWS The SUB RECIPIENT shall comply with all applicable federal, state and local laws, rules and regulations in performing this Agreement. 14. INSPECTION OF BOOKS AND RECORDS The COUNTY may, at reasonable times, inspect the books and records of the SUB RECIPIENT relating to the performance of this Agreement. The SUB RECIPIENT shall keep all records required by this Agreement for six (6) years after termination of this Agreement for audit purposes. 15. NONDISCRIMINATION The SUB RECIPIENT, its assignees, delegates or subcontractors shall not discriminate against any person in the performance of any of its obligations hereunder on the basis of race, creed, color, national origin, sex, honorably discharged veteran or military status, sexual orientation, or the presence any sensory, mental, or physical disability or the use of a trained dog guide or service animal by a person with a disability. Implementation of this provision shall be consistent with RCW 49.60, et. seq. 16. OWNERSHIP OF MATERIALS/WORK PRODUCED a. Material produced in the performance of the work under this Agreement shall be "works for hire" as defined by the U.S. Copyright Act of 1976 and shall be owned by the COUNTY. This material includes, but is not limited to, books, computer programs, plans, specifications, documents, films, pamphlets, reports, sound reproductions, studies, surveys, tapes, and/or training materials. Ownership includes the right to copyright, patent, register, and the ability to transfer these rights. The COUNTY agrees that if it uses any materials prepared by the SUB RECIPIENT for purposes other than those intended by this Agreement, it does so at its sole risk and it agrees to hold the SUB RECIPIENT harmless therefore to the extent such use is agreed to in writing by the SUB RECIPIENT. b. An electronic copy of all or a portion of material produced shall be submitted to the COUNTY upon request or at the end of the job using the word processing program and version specified by the COUNTY. 17. DISPUTES Differences between the SUB RECIPIENT and the COUNTY, arising under and by virtue of this Agreement, shall be brought to the attention of the COUNTY at the earliest possible time in order that such matters may be settled or other appropriate action promptly taken. Any dispute relating to the quality or acceptability of performance and/or compensation due the SUB Moses Lake Council Packet 11-24-20, Page 38 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 9 RECIPIENT shall be decided by the COUNTY'S Contract representative or designee. All rulings, orders, instructions and decisions of the COUNTY'S contract representative shall be final and conclusive, subject to the SUB RECIPIENT'S right to seek judicial relief pursuant to Section 18. 18. CHOICE OF LAW, JURISDICTION AND VENUE a. This Agreement has been and shall be construed as having been made and delivered within the State of Washington, and it is agreed by each party hereto that this Agreement shall be governed by the laws of the State of Washington, both as to its interpretation and performance. b. Any action at law, suit in equity, or judicial proceeding arising out of this Agreement shall be instituted and maintained only in any of the courts of competent jurisdiction in Grant County, Washington. 19. SEVERABILITY a. If a court of competent jurisdiction holds any part, term or provision of this Agreement to be illegal, or invalid in whole or in part, the validity of the remaining provisions shall not be affected, and the parties' rights and obligations shall be construed and enforced as if the Agreement did not contain the particular provision held to be invalid. b. If any provision of this Agreement is in direct conflict with any statutory provision of the State of Washington, that provision which may conflict shall be deemed inoperative and null and void insofar as it may conflict, and shall be deemed modified to conform to such statutory provision. c. Should the COUNTY determine that the severed portions substantially alter this Agreement so that the original intent and purpose of the Agreement no longer exists, the COUNTY may, in its sole discretion, terminate this Agreement. 20. ENTIRE AGREEMENT The parties agree that this Agreement is the complete expression of its terms and conditions. Any oral or written representations or understandings not incorporated in this Agreement are specifically excluded. 21. NOTICES Any notices shall be effective if personally served upon the other party or if mailed by registered or certified mail, return receipt requested, to the addresses set out in Section 4. Notice may also be given by facsimile with the original to follow by regular mail. Notice shall be deemed to be given three days following the date of mailing or immediately if personally served. For service by facsimile, service shall be effective upon receipt during working hours. If a facsimile is sent after working hours, it shall be effective at the beginning of the next working day. The parties hereto acknowledge that the waiver of immunity set out in Section 7.b. was mutually negotiated and specifically agreed to by the parties herein. Moses Lake Council Packet 11-24-20, Page 39 of 79 Emergency Solutions Grant COVID 19 Sub Recipient Agreement - 10 THIS AGREEMENT, is executed by the persons signing below who warrant that they have the authority to execute the Agreement. GRANT COUNTY WASHINGTON BOARD OF COUNTY COMMISSIONERS ADOPTED on this _______ day of November, 2020. ___________________________________ Cindy Carter Chair ___________________________________ Tom Taylor Vice-Chair ___________________________________ Richard Stevens Commissioner ATTEST: ___________________________________ Clerk of the Board APPROVED AS TO FORM: ___________________________________ Civil Deputy Prosecuting Attorney CITY OF MOSES LAKE ADOPTED on this _______ day of November, 2020. ___________________________________ Allison Williams, City Manager Moses Lake Council Packet 11-24-20, Page 40 of 79 Page 1 of 2 STAFF REPORT To: Allison Williams, City Manager From: Fred Snoderly, Municipal Services Director Date: November 9, 2020 Proceeding Type: Consent Agenda Subject: Industrial Waste Discharge Permit No. 10, Moses Lake Industries, Inc. Legislative History: •First Presentation: November 24, 2020 •Second Presentation: •Action: Motion Overview Attached is a copy of the proposed Industrial Waste Discharge Permit No. 10 for Moses Lake Industries, Inc. This permit will allow Moses Lake Industries, Inc. to continue their discharge to the City’s POTW for an additional five years prior to renewal. The permit has been signed by Hiro Era, President. Moses Lake Industries, Inc. is a significant user and is required to have an industrial waste discharge permit from the DOE and the City of Moses Lake. All discharge permits expire in five years and are required to be renewed to continue discharging to the City’s wastewater system. Fiscal and Policy Implications None Council Packet Attachments A. Industrial Waste Discharge Permit No. 10 Finance Committee Review N-A Moses Lake Council Packet 11-24-20, Page 41 of 79 Page 2 of 2 Legal Review N/A Options Option Results • Authorize the City Manager to execute the permit. The industry will continue to discharge their wastewater to the City’s system. • Take no action. The industry will have to pursue other options for their wastewater. Action Requested Staff recommends City Council authorize the City Manager to execute the Industrial Waste Discharge Permit No. 10 for Moses Lake Industries, Inc. Moses Lake Council Packet 11-24-20, Page 42 of 79 INTRODUCTION CITY OF MOSES LAKE INDUSTRIAL WASTE DISCHARGE PERMIT NO.10 (ST0005375) Moses Lake Industries 8248 Randolph Road NE Moses Lake, Washington 98837 Effective Date:November 24, 2020 Expiration Date:November 24. 2025 This wastewater discharge permit is hereby granted by the City of Moses Lake,Washington,referred to as the City,to Moses Lake Industries,referred to as the Permittee.This permit is issued in conjunction with the Washington State Department ofEcology Permit No.(ST0005375).This permit authorizes Permittee to discharge wastewater from their Moses Lake Plant into the City's POTW in accordance with the conditions contained within this permit.The permit becomes effective as ofthe date signed by the City. GENERAL CONDITIONS I.All discharges and activities authorized herein shall be consistent with the terms and conditions ofthis permit.The discharge ofany pollutant not authorized by this permit shall constitute a violation of the terms and conditions of this permit. Whenever the Permittee refuses totake corrective action orcontinues a violation,the imposition ofcivil penalties or termination ofthis permit may result,or both.Termination ofthis permit may require disposal of the wastewater in some mannerotherthan intothe private seweror to theCity's POTW,at theexpenseof the Permittee. All facility changes that mayresult ina significant deviation in character of pollutants discharged tothe POTW,from that herein specified,shall be reported tothe City.Significant adverse deviations in character of pollutants shall be authorized by the City before discharge tothe sewer system.No significant change shall bemade until plans have been approved by the City,anda new or modified permit hasbeen issued.Nonew connections,increased flows,or significant changes in wastewatercharacteristicsare permittedthat will cause violationof theeffluent limitationsspecified herein. The diversionor bypassof anydischarge from any pre-treatmentfacility utilizedby the Permitteeto maintain compliance with the terms of this permit is prohibited except where unavoidable to prevent loss of life or severe property damage. The procedure outlined in paragraph four (4)of these General conditions shall be followed in the event ofsuch a diversion or bypass to the City's POTW. 4. In the event the Permittee is unable to comply with any ofthe conditions of this permit because ofa breakdown of equipment or facilities, due to actions on the part ofthe Permittee, the Permittee shall perform the following actions: a.Immediately stop, contain, and clean up the unauthorized discharge and correct the problem. b.Immediately notify the City so steps can be taken to prevent damage to the POTW. c. Submit a written report within fifteen (15) business days of occurrence, describing the breakdown, the actual quantity andquality of the resultingwaste discharge,correctiveaction taken,and the steps taken to preventa recurrence. d. Pay reasonablecosts incurredby the City that are associatedwith a breakdown,accident,or other causethat can be demonstrated as attributable to such event. Any permit noncompliance constitutes a violation of chapter 13.05 ofthe Moses Lake Municipal Code and is grounds for enforcement action in accordance with that code. ? j. Moses Lake Industries mm:07/02/2020 Industrial WasteDischarge PermitNo. 10 Page 1 of6 Moses Lake Council Packet 11-24-20, Page 43 of 79 GENERAL CONDITIONS (continued) 5.Compliance with the above requirements does not relieve the Permittee from responsibility to maintain continuous compliance with the conditions ofthis permit,or the resulting liability for failure to comply. 6.The Permittee shall adequately maintain and efficiently operate all treatment or control facilities or systems installed or used by the Permittee to achieve compliance with the terms and conditions ofthis permit. 7.After written notice ofone ofthe following,the Permittee has ten (10)business days from the date ofthe notice torequest a hearing before the City Council.Ifthe City Council determines aviolation has occurred,the permit may be amended, suspended,orrevoked in whole or inpart. a.Violation ofanyterms orconditions ofthispermit. b.Obtaining this permit by misrepresentation orfailure tofully disclose all relevant facts. c.Achange in any condition that requires apermanent reduction or elimination ofpermanent discharge to the POTW. 8.The Permittee shall allow authorized representatives ofthe City toperform the following actions,atall reasonable times: a.Enter that portion ofthe premises by escort where an effluent source or disposal system is located or where records are required tobekept under the terms and conditions ofthis permit. b.Inspect monitoring equipment ormonitoring methods required by this permit. c. Sampledischargeof pollutants. d.Review test results and test methods. 9.Nothing in this permit shall be construed as excusing the Permittee from complying with any current federal,state,orlocal statutes,ordinances,orregulations.Ifthe State's Waste Discharge Permit requires more stringent limitations ondischarge to the POTW,the State's discharge permit shall take precedence;and,the requirements contained herein may berevised after written notice from the City. After written notice from theCity isreceived,the Permittee hasten(10)business days to request a hearing before theCity Council.TheCity will provide the Permittee an opportunity fora hearing before theCityCouncil,ifrequested;and, depending onthemagnitude ofthechanges,thePermittee,City,and DOE may negotiate a compliance schedule under which tomakethechangesnecessary tocomeintocompliance withthemorestringentlimits. 10.Thispermitdoesnot constitute authority fordischarge intopublic waters of Washington State.Anysuchdischarge bythe Permittee shallbesubjectto applicable regulations administered bythe Department of Ecology. 11. The costs incurredby the City inhandling,treating,monitoring,and disposingofthe Permittee'swastewatershallbe borne by the Permittee in the rate structure. The City may set forth the various fees in a separate ordinance. 12. The Permittee shall make application for permit renewal at least 180days prior to the expiration date ofthe permit. In the event that the City does not respond within the allotted 180day period, the existing permit shall remain in force until the revised permit is issued. 13. The Permittee shall submit payment offees associated with this permit as set forth in the fee schedule adopted by the City of Moses Lake. The City may revoke this permit if the permit fees are not paid. Moses Lake Industries mm: 07/02/2020 IndustrialWasteDischargePermitNo. 10 Page 2 of6 Moses Lake Council Packet 11-24-20, Page 44 of 79 Effluent Limits Duringthe periodof this permit,the Permitteeisauthorized to discharge wastewaterto the POTWsubject to the specified flow, concentration, and monitoring requirements. Wastewater shall be monitored and discharged to the POTW and shall not exceed the maximumdaily flowof 27,000 gallons per dayand a maximummonthlyaverage of 18,000gallons a day. Theeffluent limitationsfor thedischarge to the POTWare shown inTable 1:Effluent LimitsOutfall001 (Facility's Sampling Manhole). Effluent characteristic limits not listed inthispermitareset forth inChapter 13.05,Wastewater Regulations,Cityof Moses Lake Municipal Code. In order to meet the effluent limitations, the Permittee shall provide facilities as specified herein. When required, pretreatment and storage facilities shall be designedand operated by the Permittee ina mannersuch that the wastewaterdischarge to the POTW complies with theeffluent limits.Duringemergencyconditions,or whenthe effluent does not meetthe conditionsof this permit,the Permitteeshall divert the flow,collect the wastewater,and re-treat theeffluent. Ifthe permiteffluent limitationscannot be achieved by the onsite treatment system, the effluent shall be collected and sent offsite for disposal in accordance with applicable regulations. Beginning on the issuance date and lasting thru the expiration date ofthis permit, the Permittee is authorized to discharge wastewater to the City of Moses Lake POTW subject to the following limitations: Discharge Limits TABLE 1:Effluent Limits outfall 001 (Facility Sampling Manhole) Parameter MLMC 13.05.070 LIMITS Monthly Average Maximum Daily a Flow NA 18,000 gallons per day 27,000 gallons per day BOD5 300 mg/1b NA 68 lbs/day Fats,Oil &Grease (FOG)100mg/l NA 23 lbs/day Total Suspended Solids (TSS)350 mg/1 NA 79 lbs/day Parameter Minimum Maximum PH 6.0 11.0 Temperature NA I04°F Color NA 100 c.u. a.Maximum Daily effluent limit means the highest allowable daily discharge.The daily discharge means the discharge ofa pollutant measured during a calendar day.Forpollutants with limits expressed inunits of mass,calculate thedaily discharge as thetotal mass ofthepollutant discharged overtheday[lb7day (concentration mg/i)x (flow gpd /1,000,000 )x8.34).ForcolorandpH, thedaily discharge istheaverage measurement ofthepollutant overtheday.Fortemperature,no single measurement shall exceed I04°F. bBOD5 will bethe3-month rolling average,from thecurrent reading,and thetwo months immediately preceding thecurrent month. Moses Lake Industries mm:07/02/2020 Page 3 of 6 Industrial Waste Discharge Permit No. 10 Moses Lake Council Packet 11-24-20, Page 45 of 79 Monitoring Requirements The Permittee shall monitor thewastewater and production according tothe following schedule inTable 2:MonitoringRequirements Final Wastewater Effluent Outfall #001 (POTW). Table 2:Monitoring Requirements Final Wastewater EffluentOutfall #001 (POTW) Parameter Units Sampling Frequency Sample Type Flow,(Maximum Daily)Gallons/day (GPP)Continuous'Metered BOD}(Max.Daily)lbs/daye Monthly 24-Hour Composite' FOG (Max Daily)lbs/dayc Monthly 24-Hour Composite' TSS (Max Daily)lbs/dayc Monthly 24-Hour Compositec pH(Minimum;Maximum)f Standard Units Continuous1 Metered Temperature Monthly GrabSample' Color Color Units Monthly GrabSample' 'Continuous meansthe uninterrupted except forbrief lengthoftime forcalibration,power failure,orunanticipatedequipment repair or maintenance.The Permittee shallsampleatleastsix times when continuousmonitoringisnot possible. "Grab means an individual sample collected over fifteen (15) minute, or less period oftime. c24-hour Composite samples shall be comprisedofa flow-proportional samples collected by an electronically controlled device. d1/quarter meansthatsamplesshallbetakenatleast1time ineachofthe4 quarters ofthe year.(Jan,Feb,March)(April, May,June)(July,Aug, Sept)(Oct, Nov,Dec) and can be taken to coincide with the State permit requirements. eCalculatedeffluent limit meansthe highestallowabledaily discharge.The daily dischargemeansthe dischargeofa pollutantmeasuredduringacalendar day.For pollutants withlimitsexpressed inunitsof mass,calculate thedaily discharge asthetotal massofthepollutant discharged overtheday:[""/*,?. <coi«a«»nm*/i >x (flow gpd /l,000,000 ) x 8.34|. This docs not apply to pH. 'The Permittee shallreport the instantaneous maximum andminimum pHmonthly. Donot average pHvalues. SURCHARGE SCHEDULE If Maximum Daily Effluent Limits forTSS, BODs,or FOGfromTable 1areexceeded duringthe month, asurcharge will be addedto that monthly billing statement, and the Permittee will provide a proposal forreview by the City ofMoses Lake Wastewater Managerto demonstrate how the effluent will be reducedto permitted levels.Failure to reducethe effluent to permitted levels will constitute aviolation ofthis permit. Surchargerates are shown in Table 3: Surcharge Schedule. Table 3:Surcharge Schedule' Base Rate X 1.5 b Base Rate x 2b Base Ratex 4 bParameter BODs' FOG TSS Base Rate'Base Rate x 6 b 68 lb/day >68 lb/day >135 lb/day >203 lb/day >270 lb/day 23 lb/day >23 lb/day >45 lb/day >68 lb/day >90 lb/day 79 lb/day >79 lb/day •158 lb/day >236 lb/day >315 lb/day Sewer rates aresubject to change; but, the surcharge rates will remain unchanged forthe duration ofthe Permit. A surcharge willaccrue whenanyoneparameter hasexceededthe limit,andthe surcharge willbe applied to the monthly statement atthehighest rate calculated from Table 3. The base rate istherate for wastewater that is charged tocommercial users,asadopted byCity Council.The base rate maybeobtained by contacting Utility Billing at509-764-3719.Thebase rate issubject to change whenever the fee schedule isrevised bytheCityCouncil.Themonthly surcharge willbecalculated using themonthly averagesd. BOD5 will bethe 3-month rolling average,from the current reading,and the two months immediately preceding the current month. Reporting and Record Requirements The Permittee shall monitor and report in accordance with the conditions set forth in this permit.Falsification ofthe information submitted to Ecology or tothe City of Moses Lake isa violation ofthe terms and conditions of this permit. Monitoring Results required by this permit shall be either submitted by email or paper form by the 15th day ofthe month following the sampling period.Acopy ofthe DMR in Ecology "Paris"format will be accepted so long as it is accompanied by the electronic signature form. Submit a paper copy ofthe DMR to: City ofMoses Lake Attn:Public Works Administration P.O.Box 1579 Moses Lake,WA 98837 Moses Lake Industries Or email to each ofthe following 1.publicworksadmin@citvofml.com 2.wastewatcr@citvofml.com mm:07/02/2020 Page 4 of6 Industrial Waste Discharge Permit No.10 Moses Lake Council Packet 11-24-20, Page 46 of 79 Waste Preventative Practices Wastepreventive practices shallbe usedto reduceor eliminatecontaminant loading tothe POTW.These practicesmayinclude,butare not limited to the following: a.The Permittee shall provide access tothemonitoring and How control station forauthorized representatives of theCity during normal business hours and in the event of an emergency. b. The pretreatmenl andstoragesystemsshall be maintained continuously in satisfactory and effectiveconditionbythe Permittee,and shall be subject to periodic inspection by the City. c.The Permittee shalldesignatea representative whoseresponsibilities include theoperationand maintenance of the pretreatment and storagefacilities,monitoring andpermitcompliance,andallotheraspectsol'the wastewater discharge.The representative shallhe available to meet withthe City onany matter related to the wastewaterdischarge to the POTW. d. ThePermitteeshall be held liable forall damages directly attributable to its wastewater discharge, exclusiveof normal wear and tear. Permitteeshall not be jointlyand severally liable for the damage caused by any other party, but shall be liable for its pro-ratio share of all liability directlyattributable to Permittee'swastedischarge.Liability fordamagesmay include damagesto thesewagecollection system, pump stations, sewage treatment plant, and degradation ofreceiving water. e. The following requirements shall apply: In the event that hazardous petroleum or radioactive material reaches the PO I'W. contact 911 upon discovery. Thenimmediately notify the Public Works Division by phone or email. Reporting Permit Violations ThePermittee shall take the following actions when either the City permit or the State permit conditions are violated: a.Immediately stop,contain,and cleanup unauthorized discharges:stop the noncompliance:and correct the cause ol'the problem. h. ContacttheCityof MosesLakewithin24-hours byphoneor E-mail. IfStatepermitconditions are violated,also follow the requirements of theStatepermitwithregardsto reporting violations. City Contact Information 1. Public Works Division(24-hour)509-764-3951 or puhlicworksadmin^citvofml.com 2.Tony Pflugcr.Wastewater Division Manager 509-764-3966 orwastcwatcrYteitvofml.com 3.Emergency Call911 Permittee's Contact Information The Permittee authorizesthe following personnel to be contacted regarding this permit. DMR Contact: 1.Pat Blau.EI ISS Manager (24 hour):509-761 -8254 orphlaurt mlindustries.com 2.Catherine Hby.KHSS Chcmical/Lnvironmcntal Engineer:509-762-5336 x 778 orechv </mlindustries.com facility Contact: (Site Manager) 1.Iliro Era,President Moses Lake Industries 509-762-5336 orhera@mlindustries.com The Permittee shall notify the City whenever the contact(s)shown are revised. Moses Lake Industries mm:07/02/2020 Industrial Waste Discharge Permit No.10 Page 5 of 6 Moses Lake Council Packet 11-24-20, Page 47 of 79 GLOSSARY Citv:The City of Moses Lake,amunicipal corporation ol'the State of Washington,or its duly authorized agents or representatives. Composite Sample:Amixture of grab samples collected at the same sampling point at different times,formed '^™^J£^£*mixing discrete samples.The sample mas he time-composite (collected at constant time mtervals)or fiow-proport.onal (collected either as aconstantvolum'at time intervals proportional to stream .low):or collected by increasing the volume of each aliquot as the .low increased while maintaining a constant time interval between the aliquots. Constituent:An\ol'the pollutants or potential pollutants found in the wastewater. Kfflucnt Limits:Tlow.concentration,pi I.and mass loading limitations for wastewater discharged to the POTW by the Permittee. Monitoring:The program of How and constituent determination outlined to ensure compliance with the effluent limitations and to define the How and constituent levels in an expanded scope for the wastewater discharged to the POI Vs Permittee:Moses Lake Industries POTW:The system of gravity sewers,force mains,pumps stations,and sewage treatment plants owned by the City of Moses Lake. Wastewater:Water discharged asaby-product ofany ofthe various industrial processes. In witness whereof,the parlies hereto have caused this permit to be executed in duplicate by their respectively authorized officers or representatives. CITY OT'MOSLS LAKE MunicipalServices Department 321 S.Balsam Street P.O.Drawer 1579 Moses Lake.WA 98837 Date By: Date/VX/0^>* ('it\Manager MOSES LAKH INDUSTRIES 8248 Randolph Road NE Moses Lake.Washington 98837 By: Hiro Era.President Moses Lake Industries mm:07/02/2020 Industrial Waste Discharge Permit No. 10 Page 6 of6 Moses Lake Council Packet 11-24-20, Page 48 of 79 Page 1 of 2 STAFF REPORT To: Allison Williams, City Manager From: Cindy Jensen, Finance Director Date: November 19, 2020 Proceeding Type: Public Hearing Subject: 2021 Budget and Fee Schedule Legislative History: • First Presentation: October 24, 2020 (Council Budget Retreat) • Second Presentation: November 10, 2020 (First Public Hearing) • Action: November 24, Continued Public Hearing and Motion Overview The Budget provides for the financial planning, control, and evaluation of all funds. Prior to Council presentation the City Manager, Finance Director and Department Directors met in early October to review all budget proposals. The City Manager then made recommendations to create the City Manager’s budget that was presented to City Council in a study session on October 24, 2020. From there, appropriate changes were made so that the 2021 Preliminary Budget considers guidance and direction given by Council throughout the budget process. Council conducted the first public hearing on the 2021 budget on November 10. From that meeting, two changes were noted—the increase in the Grant County landfill rates, and the 4th of July celebration to be funded from City-directed lodging tax. No changes were made to General Fund. The budget ordinance has been modified to incorporate Council’s final directives for the November 24, 2020 meeting. When the second public hearing is completed on November 24, Council could pass the ordinance. For the Final Budget, all funds are balanced within available resources (i.e. reserves and new revenues). Many of the fees in the fee schedule are unchanged from 2020. In accordance with Council direction given in November of 2016, basic utility fees are being adjusted to keep up with inflationary increases, by applying the year-over-year increase in September’s All Urban Consumers (CPI-U) West—B/C (i.e. small cities) index of 0.62%. The Water and Wastewater utilities are in the middle of a cost of service study. Preliminary results of that study show that both these utilities need an overall 3% increase in rates to maintain operations, so those rates are increased by 3%. The next step in the cost study is to balance rates among customer classes. We do not anticipate those changes to come until mid-2021. The Solid Waste utility fees were previously unchanged because the haulers increase was also under 1%, and the interfund loans were entirely paid off and not required in the 2020 budget. However, the County Commissioners Moses Lake Council Packet 11-24-20, Page 49 of 79 Page 2 of 2 passed a 71% increase in the landfill charges to start March 1, 2021. The resulting rate adjustment to cover this additional cost is 9.0%, which will be brought forward when we do the fee legislation in December. The Solid Waste fund was adjusted to incorporate both the expenditure and revenue increases for the Final Budget. Please note that the solid waste rates were reduced by 9.6% in December 2019 as a result of favorable hauling contract negotiations, so solid waste rates will still be below where they were just over a year ago. Additional explanation and summaries or revenues and expenditures by fund are included in a separate 2021 Preliminary Budget document, which is available for public review on the City of Moses Lake website – https://www.cityofml.com/964/Financial-Reports. This is the presentation of the budget ordinance establishing the authorization and spending plan for the 2021 fiscal year for all City operations. It requires a hearing to accept public comments and input. A balanced budget needs to be adopted by December 31, 2020. The budget includes revenue estimates based on the 2021 Fee Schedule which will go to Council in a separate agenda item on December 8. Fiscal and Policy Implications The total proposed 2021 expenditure budget is approximately $95.6 million with the General Fund operating budget amounting to about $29.5 million. All funds are balanced within available resources. Council Packet Attachments A. Budget Ordinance (including Schedule A); Exhibit 1 Finance Committee Review November 10, 2020 Legal Review N/A Options Option Results • Conduct the Public Hearing and Adopt Ordinance as presented. The budget for 2021 will be complete for distribution. • Recommend changes to the 2021 budget. Provide staff with specific changes, which would then need to be incorporated into the budget system to be brought back for adoption at the December 8 meeting. Action Requested Staff recommends City Council conduct the Public Hearing, then adopt the ordinance. Moses Lake Council Packet 11-24-20, Page 50 of 79 ORDINANCE NO. 2960 AN ORDINANCE ADOPTING THE BUDGET FOR THE CITY OF MOSES LAKE, WASHINGTON FOR THE YEAR 2021 AND MAKING APPROPRIATIONS FOR ESTIMATED EXPENDITURES WHEREAS, on or before the 2nd day of November, 2020, a proposed budget and estimate of the amount of moneys required to meet the public expenses, and retirement and interest, reserve funds, and expenses of government of the City for the year 2021 was duly filed with the City Clerk of the City of Moses Lake and submitted to the City of Moses Lake City Council, all in accordance with applicable laws, and WHEREAS, subsequent to November 2, 2020, the City Council held hearings on the budget and on November 10 and November 24, 2020 the City Council held formal public hearings on the budget all in accordance with applicable laws, and WHEREAS, subsequent to its formal public hearings, the City Council made adjustments and changes to the budget as the Council deemed necessary or proper and determined the allowance in each item, department, classification and fund, all as set forth in the final budget document attached hereto, all in accordance with applicable laws, and WHEREAS, the proposed budget does not exceed the lawful limit of taxation allowed by law to be levied on the property within the City for the purposes set forth in the budget, and the estimated expenditures set forth in the budget being all necessary to carry on the government of the City for fiscal year 2021 and being sufficient to meet the various needs of the City during that period; now, therefore, THE CITY COUNCIL OF THE CITY OF MOSES LAKE, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. The budget for the City of Moses Lake, Washington for the year 2021 is hereby adopted at the fund level in its final form and content as set forth in the budget document, “City of Moses Lake, Annual Budget-2021”, which is attached hereto as Schedule A. Section 2. Estimated resources for each separate fund of the City of Moses Lake, and aggregate expenditures for all such funds for the year 2021 are set forth in summary form entitled “City of Moses Lake, Annual Budget – 2021” which is attached hereto as Schedule A, and are hereby appropriated for expenditure at the fund level during the year 2021. Pursuant to RCW 35A.13.080 the City Manager shall administer the expenditure of all funds appropriated herein, and the City Manager is authorized to take all necessary and prudent actions to implement the City Council’s expenditure directives and budget appropriations. Section 3. The budget for the 2021 fiscal year is inclusive of the 2021 fee schedule as approved and accepted by Council by separate resolution. Moses Lake Council Packet 11-24-20, Page 51 of 79 Section 4. The Clerk for City Council is directed to transmit a certified copy of the budget hereby adopted to the Division of Municipal Corporations in the Office of the State Auditor and to the Association of Washington Cities. Section 5. This ordinance shall take effect and be in force five (5) days after its passage and publication of its summary as provided by law Passed by the City Council and signed by its Mayor on November 24, 2020. ______________________________________ David Curnel, Mayor ATTEST: __________________________________ Debbie Burke, City Clerk APPROVED AS TO FORM: _______________________________________ Katherine L. Kenison, City Attorney Vote: Riggs Liebrecht Myers Jackson Curnel Eck Hankins Aye Nay Abstain Absent Date Published: November 30, 2020 Date Effective: December 5, 2020 Moses Lake Council Packet 11-24-20, Page 52 of 79 Fund Description 2021 Projected Resources 2021 Expenditure Appropriation % of  budget 000 General Fund 33,303,830$     29,536,084$       30.9% 102 Tourism Activities 921,000             569,400               0.6% 103 Grants and Donations 854,400             138,800               0.1% 110 Homeless Services 578,000             377,700               0.4% 114 Paths and Trails 77,000               26,000                 0.0% 116 Street Maintenance 2,970,000          2,568,315            2.7% 119 Street Repair/Reconstruction 4,215,900          4,205,000            4.4% 170 Transportation Benefit District 2,181,000          1,850,000            1.9% 282 LOCAL Borrowing 2021/22 914,000             914,000               1.0% 286 Gen Obligation Bond 2016 Refunding 560,800             376,733               0.4% 314 Park and Recreation Improvement 12,200,000       11,500,000         12.0% 315 Park Mitigation Capital Project 152,100             152,100               0.2% 410 Water/Wastewater 15,078,600       13,331,075         13.9% 450/1 Water/Wastewater 2011 Bond and Reserves 1,140,600          563,400               0.6% 452/3 Water/Wastewater 2004 Bond and Reserves 1,390,500          682,600               0.7% 471 Water Rights 2,000,000          1,000,000            1.0% 477 Water/Wastewater Construction 6,775,000          6,300,000            6.6% 485 Water/WW Public Works Trust Fund loan D/S 587,150             567,192               0.6% 487 2015 Bond 83,000               75,650                 0.1% 490 Sanitation‐‐Solid Waste 4,790,000          4,499,300            4.7% 493 Stormwater 1,374,000          1,294,646            1.4% 495  Airport 272,000             234,609               0.2% 498 Ambulance Utility 3,673,300          3,496,021            3.7% 501 Unemployment Compensation Ins.85,300               51,500                 0.1% 503 Self‐Insurance ‐‐ Risk Management 1,204,800          926,000               1.0% 517 Central Services ‐‐ Information Technology 1,923,800          1,831,805            1.9% 519 Equipment Rental ‐‐ Fleet Maintenance 5,713,009          5,048,691            5.3% 528 Building Maintenance 3,774,800          3,400,231            3.6% 611 Firemen's Pension 363,000             55,000                 0.1% Citywide Total 109,156,889$   95,571,852$       100.0% City of Moses Lake, Washington Annual Budget ‐ 2021 Schedule A Summary of Available Resources and  Appropriations by Fund Moses Lake Council Packet 11-24-20, Page 53 of 79 Page 1 of 2202020202021 Exp % Chg 2021 Rev % Chg 2021 2021 2021AmendedAmendedProposed 2021 vs 2020 Estimate 2021 vs 2020 Use of Est Begin Est EndingBudget Revenue Budget AmendedRevenue AmendedFund Balance Fund Balance Fund BalanceGeneral FundLegislative382,308$ 290,061$ -24.1%Executive1,087,306 890,750 -18.1%Finance1,213,093 1,084,572 -10.6%Community Development1,646,631 1,790,088 8.7%Legal192,800 187,600 -2.7%Misc. Services1,910,490 1,900,990 -0.5%Library82,100 67,300 -18.0%Engineering2,289,531 2,183,723 -4.6%Parks & Recreation6,467,411 6,974,983 7.8%Police8,855,366 9,274,654 4.7%Fire4,558,855 4,891,363 7.3%Total General Fund28,685,891 26,643,060$ 29,536,084 3.0%27,583,830$ 3.5%(1,952,254) 5,720,000$ 3,767,746$ Other Operating/EnterpriseTourism Activities -102685,400 765,000 569,400 -16.9%621,000 -18.8%51,600 300,000 351,600 Grants & Donations -103348,300 202,600 138,800 -60.1%84,400 -58.3%(54,400) 770,000 715,600 Homeless Services - 110377,700 578,000 200,300 - 200,300 Paths & Trails - 11426,000 2,000 26,000 0.0%2,000 0.0%(24,000) 75,000 51,000 Streets - 1162,721,860 2,518,000 2,568,315 -5.6%2,510,000 -0.3%(58,315) 460,000 401,685 Transportation Benefit District - 170 1,650,000 1,601,000 1,850,000 12.1%1,681,000 5.0%(169,000) 500,000 331,000 Water/Wastewater Operating - 410 13,081,697 12,984,300 13,331,075 1.9%13,078,600 0.7%(252,475) 2,000,000 1,747,525 Sanitation -4904,075,000 4,220,000 4,499,300 10.4%4,490,000 6.4%(9,300) 300,000 290,700 Stormwater - 4931,306,622 940,000 1,294,646 -0.9%964,000 2.6%(330,646) 410,000 79,354 Airport - 49554,059 27,000 234,609 334.0%202,000 648.1%(32,609) 70,000 37,391 Ambulance - 4983,358,435 2,902,640 3,496,021 4.1%2,873,300 -1.0%(622,721) 800,000 177,279 Central Svc - 5171,676,482 1,673,600 1,831,805 9.3%1,823,800 9.0%(8,005) 100,000 91,995 Equipment Rental -5194,953,123 3,795,309 5,048,691 1.9%4,113,009 8.4%(935,682) 1,600,000 664,318 Build Maint -5284,877,099 3,862,200 3,400,231 -30.3%2,774,800 -28.2%(625,431) 1,000,000 374,569 Total Other Operating/Enterprise38,814,077 35,493,649 38,666,593 -0.4%35,795,909 0.9%(2,870,684) 8,385,000 5,514,316 CITY OF MOSES LAKE2021 Budget and Fund Balances by City Functional Grouping - Final BudgetMoses Lake Council Packet 11-24-20, Page 54 of 79 Page 2 of 2202020202021 Exp % Chg 2021 Rev % Chg 2021 2021 2021AmendedAmendedProposed 2021 vs 2020 Estimate 2021 vs 2020 Use of Est Begin Est EndingBudget Revenue Budget AmendedRevenue AmendedFund Balance Fund Balance Fund BalanceCapital ImprovementStreet Repair/reconst -1193,280,000 2,315,600 4,205,000 28.2%2,715,900 17.3%(1,489,100) 1,500,000 10,900 Parks & Recreation Improvement-314 11,500,000 12,480,000 11,500,000 0.0%12,000,000 -3.8%500,000 200,000 700,000 Park Mitigation Capital Proj-315 680,000 - 152,100 79,480 (72,620) 72,620 - Water Rights - 471 - 1,000,000 (1,000,000) 2,000,000 1,000,000 Water/Sewer Construction-477 6,475,000 1,550,000 6,300,000 -2.7%1,550,000 0.0%(4,750,000) 5,225,000 475,000 Total Capital Improvement21,935,000 16,345,600 23,157,100 5.6%16,345,380 0.0%(6,811,720) 8,997,620 2,185,900 Risk Mgmt/Employee Benefit ReservesUnemployment Compensation - 501 41,500 30,000 51,500 24.1%54,300 81.0%2,800 31,000 33,800 Risk Management -503 830,000 727,000 926,000 11.6%873,800 20.2%(52,200) 331,000 278,800 Firemen's Relief & Pension - 611 50,500 33,000 55,000 8.9%43,000 30.3%(12,000) 320,000 308,000 Total Employee Benefit Reserves922,000 790,000 1,032,500 12.0%971,100 22.9%(61,400) 682,000 620,600 Debt ServiceLOCAL Borrowing 2021/22- 282- 914,000 914,000 - - - GOB 2016 Refunding-286381,442 381,217 376,733 -1.2%376,800 67 184,000 184,067 Water-Sewer 2011 Bond-450565,538 565,000 563,400 -0.4%565,000 1,600 8,000 9,600 Bond Reserve-2011 451- - - - - 567,600 567,600 Water-Sewer 2004 Bond-452676,850 676,250 682,600 0.8%682,000 (600) 7,000 6,400 Water-Sewer 2004 Bond Reserve-453- 701,500 701,500 Water-Sewer Leases-483- - - - PWTF W/S Debt Serv - 485569,930 569,930 567,192 -0.5%567,150 (42) 20,000 19,958 GOB 2006 Redemption Parks - 486- - 2015 GO Bond Redempt- 48776,359 76,400 75,650 -0.9%76,000 350 7,000 7,350 Total Debt Service2,270,119 2,268,797 3,179,575 40.1%3,180,950 40.2%1,375 1,495,100 1,496,475 Total City Budget92,627,087$ 81,541,106$ 95,571,852$ 3.2%83,877,169$ 2.9%(11,694,683)$ 25,279,720$ 13,585,037$ CITY OF MOSES LAKE2021 Budget and Fund Balances by City Functional Grouping - Final BudgetMoses Lake Council Packet 11-24-20, Page 55 of 79 Page 1 of 3 STAFF REPORT To: Allison Williams, City Manager From: Cindy Jensen, Finance Director Date: November 20, 2020 Proceeding Type: New Business Subject: 2020 Budget Appropriation Ordinance Legislative History: • First Presentation: November 24, 2020 • Second Presentation: December 8, 2020 • Action: 1st Presentation Overview RCW 35.33.091 sets forth the requirements to amend the budget absent a true “emergency”. Most fund amendments are primarily the result of things already approved by Council but just not completely incorporated in the current budget. A summary of the changes follows: • COVID Cares Act initiatives. The City received a grant to mitigate the additional costs incurred because of the pandemic. Additional programs include small business grants; utility payment assistance; a COVID compliant homeless shelter; information technology to support telecommuting and remote meetings; improving the Council Chambers audio-visual capabilities to assist public engagement even though we weren’t meeting in person; and additional cleaning, personal protective equipment (PPE), and physical barriers between people to stop the spread of the virus in city facilities. It should be noted that General Fund also had some additional costs related to COVID, but because it will be underspent in total (primarily because of the reduction in Parks and Recreation programs), we did not feel it was prudent to increase its total budget. • Police received more in forfeited/seized property and is proposing to use it to purchase supplies for the investigation unit and the Tactical Response Team (TRT). • We budget a “generic” $26,000 each year for potential paths and trails improvements. We had an actual project tied to the improvements done along Pioneer, and we anticipate needing an additional $5,000 to complete the project. • The Water/Wastewater fund contracted to do a cost of service study for a total of $80,000 split between the two operations. Moses Lake Council Packet 11-24-20, Page 56 of 79 Page 2 of 3 • The City is reviewing a purchase of water rights, so we are adding $150,000 to the Water Rights capital fund should we need to put down earnest money. • Unemployment claims are higher than anticipated this year, adding $25,000 which will be charged back to applicable operating budgets, keeping that entry neutral as well. • Risk management deductible estimates exceeding original estimates -- $80,000 is being added. • In implementing our new financial and asset management systems, we have found that there can be some efficiencies and reduction in the potential for keying errors if we can “build a bridge” for data to flow between them. We are estimating that will have a one-time cost of $60,000. During development of the 2021 preliminary budget, which requires analysis of 2020 budget trends and estimates, we noted several instances where additional appropriation is warranted so funds remain within budget at the end of 2020. In some cases, there is additional revenue to support the additional expenditures, either in program revenues or grants. In those cases that are not supported by additional revenue, the fund balance is adequate to absorb the increase. The attached ordinance increases the 2020 budget for 9 funds resulting in citywide total expenditures of $1,306,000 and adds $931,000 to estimated revenue, resulting in a net use of fund balance of $375,000 in 5 separate funds (4 funds have equal expenditures and revenues). Fiscal and Policy Implications It is a compliance issue to have actual results be within the authorized appropriation. If we overspend an appropriation, the State Auditor’s Office would likely note it as an area of non- compliance with laws. Council Packet Attachments A. Ordinance and Schedule 1 Finance Committee Review n/a Legal Review N/A Moses Lake Council Packet 11-24-20, Page 57 of 79 Page 3 of 3 Options Option Results • Adopt Ordinance Increase the appropriation authority in each of the affected funds. • Modify the Ordinance Certain items could be taken out or added to the ordinance. • Take no action. Some fund’s 2020 expenditures may exceed budget authority, potentially causing an audit compliance issue. Action Requested Staff recommends City Council review the Ordinance at the November 24, 2020 meeting. Staff will present for adoption at the next Council Meeting. Moses Lake Council Packet 11-24-20, Page 58 of 79 ORDINANCE – First Presentation AN ORDINANCE AMENDING THE 2020 BUDGET FOR THE CITY OF MOSES LAKE; AND MAKING APPROPRIATIONS FROM UNAPPROPRIATED FUND BALANCES WITHIN VARIOUS FUNDS FOR EXPENDITURE DURING 2020 FOR VARIOUS PURPOSES AS DESCRIBED IN THE ATTACHED SCHEDULE. Whereas, the various funds indicated on the attached Schedule 1 contain Unappropriated Fund Balances available for appropriation and expenditures during 2020 in various amounts and for the purposes mentioned in the attached Schedule; and Whereas, at the time of the adoption of the 2020 budget it could not reasonably have been foreseen that the appropriation provided for by this ordinance would be required; and the City Council declares that an emergency exists of the type contemplated by RCW 35.33.091 and that it is in the best interests of the City to make the appropriation herein provided, now, therefore, BE IT ORDAINED BY THE CITY OF MOSES LAKE: Section 1. Appropriations are hereby made, for expenditure during 2020, from Unappropriated Fund Balances in the various Funds to the various accounts and in the various amounts, and for the specific purposes, all as specified in the Schedule attached hereto and incorporated herein. Section 2. This ordinance is one making an appropriation and shall take effect immediately upon its passage and approval as provided by law. Section 3. The City Council declares that an emergency exists and this ordinance is deemed a public emergency ordinance necessary for the protection of public health, public safety, public property, or public peace and shall take effect immediately as provided by law upon one reading if a majority plus one of the whole membership of the City Council vote in favor of passage. Section 4 - Severability. If any section of this ordinance is found to be unconstitutional or invalid as written or as applied to any particular person or circumstances, no other section of the ordinance shall be deemed to be invalid, but rather, should be deemed to have been enacted independently and without regard to the section affected. PASSED BY THE CITY COUNCIL, and signed and approved this 8th day of December, 2020. ______________________________________ David Curnel, Mayor ATTEST: ____________________________ Debbie Burke, City Clerk Moses Lake Council Packet 11-24-20, Page 59 of 79 APPROVED AS TO FORM: _____________________________________ Katherine L. Kenison, City Attorney Vote: Riggs Liebrecht Myers Jackson Curnel Eck Hankins Aye Nay Abstain Absent Date Published: December 14, 2020 Date Effective: December 19, 2020 Moses Lake Council Packet 11-24-20, Page 60 of 79 Account #Account Name Amount Description GENERAL FUND GRANTS & DONATIONS Small Business assistance 103-103-51460-000-0411-0896-00 Professional Services 100,000$ COVID Small Business Grants Police 103-103-52121-000-0312-0000-00 Operating Supplies 20,000 Investigation Supplies 103-103-52123-000-0312-0000-00 Operating Supplies 50,000 TRT supplies Total Grant & Donations Fund 170,000 Revenue 103-000-33321-019-1000-0896-00 CARES Act Grant 100,000 Internal Allocation 103-000-36930-000-1824-0000-00 Forfeited Property 70,000 Seized property > budget estimate Total Grant & Donations Fund Revenue 170,000 Net Use of Beginning Balance - HOMELESS SERVICES Set up temporary homeless shelter 110-110-56540-000-0312-0000-00 Operating Supplies 140,000 Sheds, Water/Sewer install supplies 110-110-56540-000-0411-0000-00 Professional Services 125,000 Hope Source, Building Transport, Elec. Install 110-110-56540-000-0473-0000-00 Utility Expense 75,000 Utilities 110-110-56540-000-0491-0000-00 Miscellaneous 52,000 Other costs as needed 392,000 Revenue 110-000-31327-000-1000-0000-00 Affordable & Sup Housing 25,000 New State Tax Credit 110-000-33321-019-1000-0896-00 CARES Act Grant 175,000 Internal Allocation 110-000-33321-019-1000-0000-00 Emergency Shelter grant 192,000 Grant County Allocation Total Homeless Services Fund Revenue 392,000 Net Use of Beginning Balance - PATHS and TRAILS 114-114-59562-000-0639-0000-00 Special Purpose Paths 5,000 Pioneer Sidewalk Project > generic budget WATER (Operating) 410-411-53450-000-0411-0896-00 Professional Services 50,000 Residential CARES Act grants 410-411-53410-000-0411-0000-00 Professional Services 40,000 Water Share-Cost of Service Study Total Water Expenditures 90,000 WASTEWATER (Operating) 410-412-53510-000-0411-0000-00 Professional Services 40,000 Wastewater Share-Cost of Service Study Revenue 410-000-33321-019-1000-0896-00 CARES Act Grant 50,000 Utility Payment Program Net Use of Beginning Balance - Fund 410 80,000 WATER RIGHTS 471-471-53410-000-0491-0000-00 Miscellaneous 150,000 Prep for Purchasing Water Rights UNEMPLOYMENT COMP 501-501-51778-000-0491-0000-00 Unemployment Claims 25,000 Activity Trends Because General Fund has significant savings from reduced Parks and Recreation programs, an additional appropriation for COVID expenses is not necessary City of Moses Lake 2020 Appropriation Schedule SCHEDULE 1 Appropriate out of unappropriated fund balances of the various funds and in the various amounts and for the purposes as described: 1 of 2 Moses Lake Council Packet 11-24-20, Page 61 of 79 Account #Account Name Amount Description City of Moses Lake 2020 Appropriation Schedule SCHEDULE 1 Appropriate out of unappropriated fund balances of the various funds and in the various amounts and for the purposes as described: Revenue 501-000-34890-000-1904-0000-00 Interfund premium 25,000 Unemployment premiums Net Use of Fund Balance - SELF-INSURANCE (Risk Management) 503-503-51868-000-0499-0000-00 Payments to Claimants 80,000 Required Deductibles CENTRAL SERVICES (IT) 517-517-51888-000-0312-0000-00 Operating Supplies 72,000 Miscellaneous COVID 19 Response 517-517-51888-000-0495-0000-00 Dues and Subscriptions 15,000 Zoom Subscription 517-517-59418-000-0641-0000-00 Machinery and Equipment 180,000 Audio-Visual improvements to Council Chambers 517-517-51888-000-0354-0000-00 Computer Software 60,000 Harris/Cityworks Application Interfaces Total Central Services Fund 327,000 Revenue 517-000-33321-019-1000-0896-00 CARES Act Grant 267,000 Internal Allocation Net Use of Beginning Balance - Fund 517 60,000 BUILDING MAINTENANCE 528.528.51830.000.0315.0000.00 Repair & Maintenance Supplies 15,000 Install COVID barriers 528.528.51830.000.0312.0000.00 Operating Supplies 12,000 Extra COVID cleaning supplies Total Building Maintenance Fund 27,000 Revenue 528-000-33321-019-1000-0896-00 CARES Act Grant 27,000 Internal Allocation Net Use of Beginning Balance - Fund 528 - Citywide Total Expenditures 1,306,000$ Revenues 931,000 Net 375,000$ 2 of 2 Moses Lake Council Packet 11-24-20, Page 62 of 79 Page 1 of 2 STAFF REPORT To: Allison Williams, City Manager From: Fred Snoderly, Municipal Services Director Date: November 18, 2020 Proceeding Type: New Business Subject: Municipal Airport Fuel Station Loan Resolution Legislative History: •First Presentation: Notice of Acceptance Announced during Budget Retreat Oct 24, 2020 •Second Presentation: November 24, 2020 •Action: Motion Overview: The Municipal Airport Advisory Board expressed interest in providing a fueling station at the airport. They feel the availability to provide fuel would attract more air traffic/business to the community. The City has applied for a low interest loan to the Community Aviation Revitalization Board (CARB) in the amount of $175,000 for a new fuel system. Our application has been approved and a resolution and motion are needed to proceed with the agreement and accept the loan. Fiscal and Policy Implications: The City would accept the loan in the amount of $175,000 with a 20-year repayment obligation. A surcharge would be placed on the sale of fuel to make the annual loan payment and other associated expenses. Council Packet Attachments A. Resolution with Exhibits: Offer Letter, Offer Agreement, Estimated Loan Repayment Schedule, and Loan Assurances Finance Committee Review N/A Moses Lake Council Packet 11-24-20, Page 63 of 79 Page 2 of 2 Legal Review Type of Document Title of Document Date Reviewed Application Packet IOFA, Loan Assurances, Loan Repayment schedule November 12, 2020 Options Option Results • Adopt the Resolution as presented. Staff will process the loan agreement and purchase the new fuel station. • Provide staff with changes Staff would incorporate requested changes. • Take no action. No new fuel station. Action Requested Staff request Council adopt Resolution 3835 to authorize the City Manager to execute the CARB Loan Agreement for a new fuel station. Moses Lake Council Packet 11-24-20, Page 64 of 79 RESOLUTION NO. 3835 A RESOLUTION OF THE MOSES LAKE, WASHINGTON, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AN AGREEMENT ON BEHALF OF THE CITY COUNCIL WITH THE WASHINGTON STATE COMMUNITY AVIATION REVITALIZATION BOARD FOR AID IN FINANCING THE COSTS OF PUBLIC FACILITIES CONSISTING OF A FUELING SYSTEM AT THE MOSES LAKE AIRPORT Recitals: 1. The Municipal Airport Advisory Board recommends installation of a key card fuel station to attract additional air traffic and business to the community. 2. The Municipal Airport Advisory Board has received approval for a loan to finance a new fuel station from Washington State Community Aviation Revitalization Board (CARB). Resolved: 1. That the City Manager of Moses Lake be hereby authorized and directed to execute, on behalf of the City Council, a Final Contract between the Community Aviation Revitalization Board and the City of Moses Lake and such other documents as may be required for securing aid in financing the cost of the above-described public facilities. 2. The city council has accepted the offer of the loan from the Community Aviation Revitalization Board in the amount of $175,000, said loan to bear interest at the rate of 2.0% per annum. 3. Repayment of said $175,000 general obligation loan (unless revenue loan authorized) shall be in consistent with the terms provided in the signed Initial Offer of Financial Aid and more particularly as follows: General Obligation Loan of $175,000 with an interest rate of 2.0% for a term of 20 years including up to 3 years of deferred principal and interest. 4. A copy of said Initial Offer of Financial Aid is attached hereto, designated as Exhibit A, and made a part hereof as though set forth herein in full. Moses Lake Council Packet 11-24-20, Page 65 of 79 5. The City of Moses Lake reserves the right to accelerate payments on principal and eliminate the interest on any accelerated principal payments. This obligation shall be considered as a legal general obligation of the City of Moses Lake and the City hereby pledges its full faith and credit to the payment thereof. 6. The City of Moses Lake shall establish a separate fund to be known as the Community Aviation Revitalization Board (CARB) Fund. Establishment of this fund applies to CARB loans. In the case of a loan, there shall be sufficient moneys placed in this fund to meet the above-detailed repayment schedule. The source of payment is fuel sales and surcharges. ADOPTED by the City Council on November 24, 2020. ________________________________________ David Curnel, Mayor ________________________________________ Allison Williams, City Manager ATTEST: _________________________________________ Debbie Burke, City Clerk Moses Lake Council Packet 11-24-20, Page 66 of 79 o 7702 Terminal Street SW • Tumwater, WA 98501-7264 • (360) 705-7839 October 19, 2020 Fred Snoderly Municipal Services Director City of Moses Lake, Moses Lake Municipal Airport 401 S. Balsam PO Box 1579 Moses Lake, WA 98837 RE: CARB Initial Offer of Financial Aid Dear Mr. Snoderly, Congratulations! The Community Aviation Revitalization Board (CARB) has selected your project and is offering a low-interest loan in the amount of $175,000 for your New Fuel System at Moses Lake Municipal Airport. The next steps will be to develop and sign the loan agreement so that eligible project expenditures may be reimbursed. Please note that no project costs incurred prior to the Initial Offer of Financial Aid date will be reimbursed by CARB. After contract execution, a signed copy will be forwarded for the City of Moses Lake’s records. The execution date of the final contract will be based on the signature of the CARB Chairperson or designee. An estimated repayment schedule is enclosed to confirm your desired repayment term and grace period up to 20 years. Also enclosed is a copy of the loan assurances that apply to state-funded projects and related acknowledgements that will become part of your loan agreement. Our intent is to have your loan agreement ready for signature in December 2020. I will be your primary contact during this contracting process. If you have any questions, please don’t hesitate to contact me at (360) 705-7839 / (360) 628-1767 or chenaud@wsdot.wa.gov. Sincerely, David Chenaur Aviation Loan Program Manager Attachments: • Initial Offer of Financial Aid (IOFA) • Loan Assurances • Repayment Resolution/Ordinance (sample) • Estimated loan repayment schedule COMMUNITY AVIATION REVITALIZATION BOARD Moses Lake Council Packet 11-24-20, Page 67 of 79 Attachment A CARB Pre-Contract Requirements Initial Offer of Financial Aid If you wish to accept CARB's offer, please enter your Tax Identification Number (TIN), sign and return two original copies of the enclosed Initial Offer of Financial Aid by November 30, 2020. A copy of the executed Initial Offer will be forwarded for your records. If the terms and conditions of this offer are not acceptable, you may request in writing that CARB reconsider, amend or modify its offer. Pre-Contract Requirements Please complete the conditions below and submit the appropriate documentation to CARB. If all conditions are not completed by November 30, 2020 you have the option to request an extension from the Board. If the Board does not approve an extension of the initial offer, the offer will expire. 1. Signed copies (2) of the IOFA. 2. Repayment Resolution or Ordinance. 3. Signed copy of the Loan Assurances. 4. Confirm the length of loan and any grace period (deferred principle and interest) requested up to 3 years (see estimated loan repayment schedule attached). Moses Lake Council Packet 11-24-20, Page 68 of 79 Project Number: 2020‐010  Washington State  Community Aviation Revitalization Board Initial Offer of Financial Aid City of Moses Lake Statewide Vendor Number: 916007721 L Offer Date: October 20, 2020 The Community Aviation Revitalization Board (CARB) is authorized by EHB 1102, Section 4005, Session Laws of 2019 and Section 6023 of this Act for direct loans to airport sponsors of public use airports in the State of Washington for the purposes of improvements that primarily support general aviation activities. This Initial Offer of Financial aid is contingent upon the availability of CARB funds. CARB hereby offers to make funds available to the City of Moses Lake, hereafter referred to as the "Recipient,” in order to aid in financing the cost of, or improvements to, airport facilities consisting of the New Fuel System as described in the application (hereafter collectively referred to as the "Project"). This offer consists of: General Obligation loan of $175,000 Interest rate: 2.0 percent (%) per annum on the outstanding principal balance Term: 20 years maximum, including up to 3 years of deferred principal and interest This offer is subject to completion of pre‐contract conditions, as described in Attachment A. A final contract shall be developed by CARB prior to disbursement of funds. In the event a final contract is not executed, no CARB funds will be disbursed.  If accepted, this Initial Offer of Financial Aid must be signed and returned to CARB by November 30, 2020. ACCEPTANCE FOR CARB FOR THE RECIPIENT David Fleckenstein Signature* Director, WSDOT – Aviation  Board Member, CARB Name: Date:Title: Date: * Authorized to accept offer on behalf of RECIPIENT Moses Lake Council Packet 11-24-20, Page 69 of 79 EXHIBIT C, LOAN REPAYMENT SCHEDULE ENTER VALUES LOAN SUMMARY $175,000.00 $10,702.43 2.00%20 20 20 1 $0.00 5/1/2022 $39,048.51 $0.00 LENDER NAME PMT NO PAYMENT DATE BEGINNING BALANCE SCHEDULED PAYMENT EXTRA PAYMENT TOTAL PAYMENT PRINCIPAL INTEREST ENDING BALANCE CUMULATIVE INTEREST 1 5/1/2022 $175,000.00 $10,702.43 $0.00 $10,702.43 $7,202.43 $3,500.00 $167,797.57 $3,500.00 2 5/1/2023 $167,797.57 $10,702.43 $0.00 $10,702.43 $7,346.47 $3,355.95 $160,451.10 $6,855.95 3 5/1/2024 $160,451.10 $10,702.43 $0.00 $10,702.43 $7,493.40 $3,209.02 $152,957.70 $10,064.9745/1/2025 $152,957.70 $10,702.43 $0.00 $10,702.43 $7,643.27 $3,059.15 $145,314.42 $13,124.1355/1/2026 $145,314.42 $10,702.43 $0.00 $10,702.43 $7,796.14 $2,906.29 $137,518.29 $16,030.4265/1/2027 $137,518.29 $10,702.43 $0.00 $10,702.43 $7,952.06 $2,750.37 $129,566.23 $18,780.7875/1/2028 $129,566.23 $10,702.43 $0.00 $10,702.43 $8,111.10 $2,591.32 $121,455.13 $21,372.1185/1/2029 $121,455.13 $10,702.43 $0.00 $10,702.43 $8,273.32 $2,429.10 $113,181.80 $23,801.21 9 5/1/2030 $113,181.80 $10,702.43 $0.00 $10,702.43 $8,438.79 $2,263.64 $104,743.01 $26,064.84 10 5/1/2031 $104,743.01 $10,702.43 $0.00 $10,702.43 $8,607.57 $2,094.86 $96,135.45 $28,159.71 11 5/1/2032 $96,135.45 $10,702.43 $0.00 $10,702.43 $8,779.72 $1,922.71 $87,355.73 $30,082.41 12 5/1/2033 $87,355.73 $10,702.43 $0.00 $10,702.43 $8,955.31 $1,747.11 $78,400.42 $31,829.53 13 5/1/2034 $78,400.42 $10,702.43 $0.00 $10,702.43 $9,134.42 $1,568.01 $69,266.00 $33,397.54 14 5/1/2035 $69,266.00 $10,702.43 $0.00 $10,702.43 $9,317.11 $1,385.32 $59,948.90 $34,782.86 15 5/1/2036 $59,948.90 $10,702.43 $0.00 $10,702.43 $9,503.45 $1,198.98 $50,445.45 $35,981.84 16 5/1/2037 $50,445.45 $10,702.43 $0.00 $10,702.43 $9,693.52 $1,008.91 $40,751.93 $36,990.74 17 5/1/2038 $40,751.93 $10,702.43 $0.00 $10,702.43 $9,887.39 $815.04 $30,864.55 $37,805.78 18 5/1/2039 $30,864.55 $10,702.43 $0.00 $10,702.43 $10,085.13 $617.29 $20,779.41 $38,423.07 19 5/1/2040 $20,779.41 $10,702.43 $0.00 $10,702.43 $10,286.84 $415.59 $10,492.57 $38,838.66 20 5/1/2041 $10,492.57 $44,968.18 $0.00 $10,492.57 $10,282.72 $209.85 $0.00 $39,048.51 Optional extra payments Loan amount Annual interest rate Loan period in years Number of payments per year Start date of loan CARB / WSDOT - Aviation Division Scheduled payment Scheduled number of payments Actual number of payments Total early payments Total interest Moses Lake Council Packet 11-24-20, Page 70 of 79 The following Airport Loan Program Assurances are incorporated herewith and form a part of the airport sponsor’s loan agreement for funding under the Aviation Revitalization Loan Program. Signature of Applicant’s Authorized Representative: Title of Representative: Date: Last Update: 11/4/19 AIRPORT LOAN PROGRAM ASSURANCES General. (1)Airport sponsors shall comply with these assurances pursuant to and for the purpose of carrying out theprovisions of the state of Washington airport loan program agreements. (2)Airport sponsors will submit these assurances as part of the loan agreement. As used herein, the term "publicagency sponsor" means any municipality or municipalities acting jointly or any Indian tribe recognized by the federal government or such tribes acting jointly in the planning, acquisition, construction, improvement, maintenance, or operation of an airport, owned or controlled, or to be owned or controlled by such municipality or municipalities or Indian tribe or tribes, to be held available for the general use of the public; the term "private sponsor" means any person or persons acting jointly in the planning, acquisition, construction, improvement, maintenance, or operation of an airport, owned or controlled, or to be owned or controlled by such person or persons, to be held available for the general use of the public; and the term "sponsor" includes both public agency sponsors and private sponsors. (3)Upon a sponsor's acceptance of a loan offer by the department, these assurances are incorporated in andbecome part of the loan agreement. Duration and applicability. (1)Washington airport loan program projects undertaken by a sponsor. The terms, conditions, and assurances of this loan agreement shall remain in full force and effect throughout the useful life of the facilities developed or equipment acquired for an airport project, not to exceed twenty years from the date of acceptance of a loan offer of state funds for the project. However, there shall be no limit on the duration of the assurances regarding exclusiverights and airport revenue so long as the airport is used as an airport. There shall be no limit on the duration of theterms, conditions, and assurances with respect to real property acquired with state funds. EXHIBIT D, AIRPORT PROGRAM LOAN ASSURANCES Moses Lake Council Packet 11-24-20, Page 71 of 79 Sponsor certification. The sponsor certifies, with respect to this loan that: (1)General state requirements. It will comply with all applicable Washington state laws, regulations, executiveorders, policies, guidelines, and requirements as they relate to the application, acceptance and use of state funds for this project including, but not limited to, the following: (a)State legislation: •Chapter 8.26 RCW (Relocation assistance -- Real property acquisition policy) •Chapter 27.34 RCW (State historical societies -- Historic preservation)•Chapter 27.44 RCW (Indian graves and records)•Chapter 27.48 RCW (Preservation of historical materials) •RCW 29A.84.620 (Hindering or bribing voter)•Chapter 36.70A RCW (Growth management -- Planning by selected counties and cities)•Title 37 RCW (Federal areas -- Indians) •Chapter 39.12 RCW (Prevailing wages on public works)•RCW 47.29.200 (Prevailing wages)•RCW 47.68.280 (Investigations, hearings, etc. -- Subpoenas -- Compelling attendance) •RCW 47.68.310 (Enforcement of aeronautics laws)•Title 49 RCW (Labor regulations)•Title 64 RCW (Real property and conveyances) •Chapter 70.94 RCW (Washington Clean Air Act)•Title 86 RCW (Flood control)•Title 91 RCW (Waterways)•Title 12 WAC (Transportation, department of (aeronautics commission))•Title 18 WAC (Air pollution) •Title 25 WAC (Archaeology and historic preservation, department of)•WAC 330-01-050 (dispositions, metropolitan municipal corporations)•Title 167 WAC (Drug abuse prevention office) •Title 197 WAC (Ecology, department of (environmental policy, council on))•Title 198 WAC (Environmental and land use hearings office)•Title 199 WAC (Environmental hearings office (environmental and land use hearings board)) •Title 254 WAC (Historic preservation, advisory council on)•Title 326 WAC (Minority and women's business enterprises, office of)•Chapter 330-01 WAC (Procedures for corridor and design public hearings under RCW 35.58.273) •Chapter 468-100 WAC (Uniform relocation assistance and real property acquisition)•WAC 468-100-008 (Compliance with other laws and regulations)•Title 357 WAC (Financial management, office of -- State human resources director) •Title 508 WAC (Ecology, department of (water resources)) (b) Executive orders: •Governor's Executive Order 92-01 (Establishing Governor's Policy on a Drug-Free Work Place)•Governor's Executive Order 96-04, Implementing the Americans with Disabilities Act and superseding ExecutiveOrder 93-03 •Governor's Executive Order 05-05 (Archaeological and Cultural Resources) Governor's Executive Order 11-01, superseding Executive Order 09-04, Amending Washington Council on Aerospace •Governor's Executive Order 12-02 (Workforce Diversity and Inclusion) Moses Lake Council Packet 11-24-20, Page 72 of 79 (2)General legal requirements. It will comply with all applicable laws and ordinances, orders, guidelines,policies, directives, rules and regulations of municipal, county, and federal governmental authorities or regulatory agencies. (3)Responsibility and authority of the sponsor. (a)Public agency sponsor: It has legal authority to apply for this loan, and to finance and carry out the proposedproject; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. (b)Private sponsor: It has legal authority to apply for this loan and to finance and carry out the proposed projectand comply with all terms, conditions, and assurances of this loan agreement. It shall designate an official representative and shall in writing direct and authorize that person to file this application, including all understandings and assurances contained therein; to act in connection with this application; and to provide such additional information as may be required. (4)Sponsor fund availability. It has sufficient funds available for the portion of the project which is not paid bythe state of Washington. It has sufficient funds available to assure operation and maintenance of items funded under this loan agreement which it will own or control. (5)Good title. It holds good title, satisfactory to the department, to the areas of the airport or site thereofnecessary for aircraft takeoff and landing as well as those necessary for the movement of aircraft to and from the landing and takeoff areas, or gives assurances satisfactory to the department that good title will be acquired prior to accepting loan funds. (6)Preserving rights and powers. (a)It will not take or permit any action which would operate to deprive it of any of the rights and powers necessaryto perform any or all of the terms, conditions, and assurances in this loan agreement without the written approval of the department, and will act promptly to acquire, extinguish or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the department. (b)It will not sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in theproperty associated with this application or that portion of the property upon which state funds have been expended, for the duration of the terms, conditions, and assurances in this loan agreement without approval by the department. If the transferee is found by the department to be eligible to assume the obligations of this loan agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or document transferring or disposing of the sponsor's interest, and make binding upon the transferee all of the terms, conditions, and assurances contained in this loan agreement. (c)If the sponsor is a private sponsor, it will, to the department's satisfaction, ensure that the airport will continueto function as a public-use airport in accordance with these assurances for the duration of these assurances. (d)If an arrangement is made for management and operation of the airport by any agency or person other thanthe sponsor or an employee of the sponsor, the sponsor will, to the department's satisfaction, reserve and document in arrangements with said party sufficient rights and authority to ensure that the airport will be operated and maintained in accordance with the regulations and the terms, conditions, and assurances in this loan agreement and shall ensure that such arrangement also requires compliance therewith. (e)Sponsors of commercial service airports will not permit or enter into any arrangement that allows an owner ortenant of a property used as a residence, or zoned for residential use, to taxi an aircraft between that property and any location on airport. (f)Sponsors of general aviation airports entering into any arrangement that allows an owner of residential realproperty adjacent to or near the airport must comply with the requirements set forth in Section 136 of Public Law 112-95. (7)Consistency with local plans. Certify, to the department's satisfaction, that the project is consistent with plans(existing at the time of submission of this application) of public agencies that are authorized to plan for the development of the area surrounding the airport. Moses Lake Council Packet 11-24-20, Page 73 of 79 (8)Consideration of local interest. Certify, to the department's satisfaction, that it considered the interest ofcommunities in or near where the project is located. (9)Consultation with users. Certify to the department's satisfaction that when it made a decision to undertakeany project, that it consulted with affected parties using the airport. (10)Public hearings. In projects involving the location of an airport, an airport runway, or a major runwayextension, it held public hearings for the purpose of considering the economic, social, and environmental effects of the airport or runway location and its consistency with goals and objectives of such planning as has been carried out by the community and it shall, when requested by the department, submit a copy of the transcript of such hearings to the department. Further, for such projects, its management board contain(s/ed) either voting representation from the communities where the project is located or it advised communities that they have the right to petition the department concerning a proposed project. (11)Air and water quality standards. In projects involving airport location, a major runway extension, or runwaylocation, it will provide the department appropriate written certification that the project will be located, designed, constructed, and operated so as to comply with applicable federal, state, and local air and water quality standards. In any case where such standards have not been approved and where applicable air and water quality standards have been promulgated by the administrator of the Environmental Protection Agency, or the secretary of the Department of Ecology, certification shall be obtained. Notice of certification or refusal to certify shall be provided within sixty days after the project application has been received by the department. (12)Pavement preventive maintenance. With respect to a project for the replacement or reconstruction ofairport pavement, it assures or certifies to the department's satisfaction that it has implemented an effective airport pavement maintenance-management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed or repaired with state financial assistance at the airport. It will provide such reports on pavement condition and pavement management programs as the department determines may be useful. (13)Accounting system, audit, and recordkeeping requirements. (a) It shall keep all project accounts and records which fully disclose the amount and disposition of the proceeds ofthis loan, the total cost of the project in connection with which this loan is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with RCW 43.09.200 and the Washington state budgetary, accounting, and reporting system (BARS) manuals and financial reporting packages. (b)It shall make available to the department and the Washington state auditor's office, or any of their dulyauthorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to this loan. The department may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a loan or relating to the project in connection with which this loan was given or used, it shall file a certified copy of such audit with the department not later than six months following the close of the fiscal year for which the audit was made. (14)Wage rates. It shall include in all contracts in excess of two thousand five hundred dollars, or as outlined inWAC 296-127-050, for work on any projects funded under this loan agreement which involve labor, provisions establishing minimum rates of wages under the Washington State Prevailing Wages on Public Works Act, chapter 39.12 RCW, which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work. This shall be documented by a statement of intent to pay prevailing wages and an affidavit of wages paid. (15)Nondiscrimination requirements. It shall prohibit discrimination in all phases of contracted employment,contracting activities and training pursuant to Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, the Justice System Improvement Act of 1979, the Americans with Disabilities Act of 1990, the Civil Rights Restoration Act of 1987, 49 C.F.R. Part 21, chapter 49.60 RCW and other related laws and statutes. (16)Equal employment opportunity (EEO) responsibilities. It shall comply with regulations relative to nondiscrimination in state-assisted programs of the department, which are herein incorporated by reference and made a part of this project. With regard to the work performed during the project, it shall not discriminate on the Moses Lake Council Packet 11-24-20, Page 74 of 79 grounds of race, color, gender, creed, national origin, age, sexual orientation, gender identity, marital status, disability or veteran status in the selection and retention of contractors, consultants and service providers, including procurement of materials and leases of equipment. (17)Veteran's preference. It shall include in all contracts for work on any project funded under this loanagreement which involve labor, such provisions as are necessary to ensure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to honorably discharged military personnel who are veterans of any war of the United States, or of any military campaign for which a campaign ribbon shall have been awarded, and their widows or widowers, shall be preferred for appointment and employment. Age, loss of limb, or other physical impairment, which does not in fact incapacitate, shall not be deemed to disqualify them, provided they possess the capacity necessary to discharge the duties of the position involved as defined in RCW 73.16.010. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. (18)Conformity to plans and specifications. It will execute the project subject to plans, specifications, andschedules approved by the department. Such plans, specifications, and schedules shall be submitted to the department prior to commencement of site preparation, construction, or other performance under this loan agreement, and, upon approval of the department, shall be incorporated into this loan agreement. Any modification to the approved plans, specifications, and schedules shall also be subject to approval of the department, and incorporated into this loan agreement. (19)Construction inspection and approval. It will provide and maintain competent technical supervision at theconstruction site throughout the project to assure that the work conforms to the plans, specifications, and schedules approved by the department for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the department and such work shall be in accordance with regulations and procedures prescribed by the department. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the department shall deem necessary. (20)Planning projects. Planning projects are not eligible under the aviation loan program at this time (21)Operation and maintenance. The airport and all facilities which are necessary to serve the aeronauticalusers of the airport, other than facilities owned or controlled by the United States or the state of Washington, shall be operated at all times in a safe and serviceable condition and in accordance with the minimum standards as may be required or prescribed by applicable federal, state, and local agencies for maintenance and operation. It will not cause or permit any activity or action thereon which would interfere with its use for airport purposes. It will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal to temporarily close the airport for non-aeronautical purposes must first be approved by the department. In furtherance of this assurance, the sponsor will have in effect arrangements for: (a) Operating the airport's aeronautical facilities whenever required; (b) Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions; and (c) Promptly notifying airmen of any condition affecting aeronautical use of the airport. Nothing contained herein (22)Hazard removal and mitigation. It assures that such terminal airspace under the appropriate category ofFederal Air Regulation Part 77, 14 C.F.R. 77, as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards. Where hazards are on land owned by others, the sponsor will make every effort to coordinate with owners to mitigate airport hazards. (23)Compatible land use. It shall, either by the acquisition and retention of property interest, in fee or easement, orby seeking enforcement of local zoning action, prevent the construction of any object which may constitute an incompatible land use such as residential encroachment, wildlife attractants, uses that emit smoke, steam, glare, or electromagnetic interference, and height hazards. Sponsor will take proactive measures to discourage incompatible land uses adjacent to the airport, to include a formal consultation with local jurisdictions on land use issues, and support and/or recommend land use regulations consistent with WSDOT best management practices found in WSDOT's Airports and Compatible Land Use Guidebook. shall be construed to require that the airport be operated for aeronautical use during temporary periods when snow, flood, or other climatic conditions interfere with such operation and maintenance. Further, nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor. Moses Lake Council Packet 11-24-20, Page 75 of 79 (24)Economic nondiscrimination. (a) It will make the airport available as an airport for public use and without discrimination to all types, kinds and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport. (b) In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport isgranted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to: (i) Furnish said services on a reasonable, nondiscriminatory, basis to all users thereof; and (ii) Charge reasonable, and nondiscriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. (c) Each fixed-based operator at the airport shall be subject to the same rates, fees, rentals, and other charges asare uniformly applicable to all other fixed-based operators making the same or similar uses of such airport and utilizing the same or similar facilities. (d) Each air carrier using such airport shall have the right to service itself or to use any fixed-based operator that isauthorized or permitted by the airport to serve any air carrier at such airport. (e) Each air carrier using such airport (whether as a tenant, nontenant, or subtenant of another air carrier tenant)shall be subject to such nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and substantially related to providing air transportation as are applicable to all such air carriers which make similar use of such airport and utilize similar facilities, subject to reasonable classifications such as tenants or nontenants and signatory carriers and nonsignatory carriers. Classification or status as tenant or signatory shall not be unreasonably withheld provided an air carrier assumes obligations substantially similar to those already imposed on air carriers in such classification or status. (f) It will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees (including, but not limited to, maintenance, repair, and fueling) that it may choose to perform. In the event the sponsor itself exercises any of the rights and privileges referred to in this assurance, the services involved will be provided on the same conditions as would apply to the furnishing of such services by commercial aeronautical service providers authorized by the sponsor under these provisions. (g)The sponsor may establish such reasonable, and nondiscriminatory, conditions to be met by all users of theairport as may be necessary for the safe and efficient operation of the airport. The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public. (25)Exclusive rights. It will not grant exclusive right for the use of the airport to any person(s) providing, orintending to provide, aeronautical services to the public. For purposes of this subsection, the providing of the services at an airport by a single fixed-based operator shall not be construed as an exclusive right if the following apply: (a)It would be unreasonably costly, burdensome, or impractical for more than one fixed-based operator to providesuch services; (b)If allowing more than one fixed-based operator to provide such services would require the reduction of spaceleased pursuant to an existing agreement between such single fixed-based operator and such airport. It further agrees that it will not, either directly or indirectly, grant or permit any person, firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities including, but not limited to, charter flights, pilot training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial advertising and surveying, air carrier operations, aircraft sales and services, sale of aviation petroleum products whether or not conducted in conjunction with other aeronautical activity, repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of their direct relationship to the operation of aircraft can be regarded as an aeronautical activity, and that it will terminate any exclusive right to conduct an aeronautical activity existing at such an airport before the grant of any assistance under RCW 47.68.090; and (c) It has received approval from the department. Moses Lake Council Packet 11-24-20, Page 76 of 79 (26)Fee and rental structure. It will maintain a competitive fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at the particular airport, taking into account factors such as the volume of traffic and economy of collection. No part of the state share of an airport development or airport planning project for which a loan is made under RCW 47.68.090 shall be included in the rate basis in establishing fees, rates, and charges for users of that airport. (27)Airport revenues. All revenues generated by the airport and any local taxes established after December 30,1987, on aviation fuel, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport. The following exceptions apply to this subsection: (a)If covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator ofthe airport, or provisions enacted before September 3, 1982, in governing statutes controlling the owner or operator's financing, provide for the use of the revenues from any of the airport owner or operator's facilities, including the airport, to support not only the airport but also the airport owner or operator's general debt obligations or other facilities, then this limitation on the use of all revenues generated by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply. (b)If the department approves the sale of a privately owned airport to a public sponsor and provides funding forany portion of the public sponsor's acquisition of land, this limitation on the use of all revenues generated by the sale shall not apply to certain proceeds from the sale. This is conditioned on repayment to the secretary by the private owner of an amount equal to the remaining unamortized portion (amortized over a twenty-year period) of any airport improvement grant made to the private owner for any purpose other than land acquisition on or after October 1, 1996, plus an amount equal to the federal share of the current fair market value of any land acquired with an airport improvement grant made to that airport on or after October 1, 1996. (c)When requested by the department, the sponsor will obtain an audit that will review, and the resulting auditreport will provide an opinion concerning, the use of airport revenue and taxes, and indicate whether funds paid or transferred to the owner or operator were paid or transferred in a manner consistent with state law and any other applicable provision of law, including any regulation promulgated by the secretary. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with state law. (28)Reports and inspections. It will: (a)Submit to the department such annual or special financial and operations reports as the department may request and make such reports available to the public; make available to the public at reasonable times and places a report of the airport budget in a format prescribed by the department; for airport development projects, make the airport and all airport records and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other instruments, available for inspection by any duly authorized agent of the department upon request; (b) In a format and time prescribed by the department, provide to the department and make available to the publicfollowing each of its fiscal years, an annual report listing in detail: (i) All amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and (ii) All services and property provided by the airport to other units of government and the amount of compensationreceived for provision of each such service and property. (29)Use by government aircraft. It will not charge the state or its agencies (except for those under contract), for limited but reasonable, nonroutine, search and rescue, law enforcement or public safety use of public landing and aircraft parking facilities. The sponsor may require written verification of an entity's official government business status, and notification prior to use of facilities. (30)Land for state facilities. It will furnish without cost to the state of Washington for use in connection with anyair traffic control or air navigation activities, or weather reporting and communication activities related to air traffic control, any areas of land or water, or estate therein, or for these same purposes, rights in buildings of the sponsor as the department considers necessary for construction, operation, and maintenance at state expense of space or facilities. Such areas or any portion thereof will be made available as provided herein within four months after receipt of a written request from the department. Moses Lake Council Packet 11-24-20, Page 77 of 79 (31)Airport layout plan. (a)It will provide airport layout plans (ALPs) as prescribed in WSDOT's Aviation Loan Procedures Manual. It will keep up-to-date at all times an airport layout plan of the airport showing: (i) Boundaries of the airport and all proposed additions thereto, together with the boundaries of all off-site areasowned or controlled by the sponsor for airport purposes and proposed additions thereto; (ii) The location and nature of all existing and proposed airport facilities and structures (such as runways,taxiways, aprons, terminal buildings, hangars, and roads), including all proposed extensions and reductions of existing airport facilities; (iii) The location of all existing and proposed nonaviation areas and of all existing improvements thereon; and (iv) All proposed and existing access points used to taxi aircraft across the airport's property boundary. Such airport layout plans and each amendment, revision, or modification thereof, shall be subject to the approval of the department which approval shall be evidenced by the signature of a duly authorized representative of the department on the face of the airport layout plan. The sponsor will not make or permit any changes or alterations to the airport or any of its facilities which are not in conformity with the airport layout plan as approved by the department and which might, in the opinion of the department, adversely affect the safety, utility, or efficiency of the airport. (b)If a change or alteration in the airport or the facilities is made which the department determines adverselyaffects the safety, utility, or efficiency of any state-owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the department, the owner or operator will, if requested, by the department. (i)Eliminate such adverse effect in a manner approved by the department; or (ii)Bear all costs of relocating such property (or replacement thereof) to a site acceptable to the department and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities except in the case of arelocation or replacement of an existing airport facility due to a change in the department's design standardsbeyond the control of the airport sponsor. (32) Disposal of land.(a) For land purchased under a grant for airport development purposes, it will, when the land is no longer needed for airport purposes, dispose of such land at fair market value or make available to the department an amount equal to the states' proportionate share of the fair market value of the land. The portion of the proceeds proportionate to the states' share of the cost of acquisition of such land will, upon application to the department, be reinvested or transferred to another eligible airport as prescribed by the department. The department shall give preference to the following, in descending order: (i) Payment to the state of Washington for deposit in the aeronautics account; or (ii)Reinvestment in an approved project that is eligible for loan funding under RCW 47.68.090. (b) Land shall be considered to be needed for airport purposes under this assurance if: (i) It may be needed for aeronautical purposes (including runway protection zones) or serve as noise buffer land; and (ii)The revenue from interim uses of such land contributes to the financial self-sufficiency of the airport. (c)Disposition of such land will be subject to the retention or reservation of any interest or right thereinnecessary to ensure that such land will only be used for purposes which are compatible with noise levelsassociated with operation of the airport. (33)Engineering and design services. It will award each contract, or subcontract for program management,construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services with respect to the project in the same manner as a contract for architectural and engineering services is negotiated under WSDOT Consultant Services Manual M-27-50.02 or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport. (34)Foreign market restrictions. It will not allow funds provided under this loan to be used to fund any projectwhich uses any product or service of a foreign country during the period in which such foreign country is listed by the United States trade representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. Sponsors are encouraged to "Buy American" whenever feasible and appropriate. (35)Policies, standards, and specifications. It will carry out the project in accordance with policies, standards,and specifications approved by the department and included in this loan, and in accordance with applicable state policies, standards, and specifications. Moses Lake Council Packet 11-24-20, Page 78 of 79 (36)Relocation and real property acquisition. It will be guided in acquiring real property, to the greatest extentpracticable under state law, by the land acquisition policies in RCW 8.26.180. (37)Disadvantaged business enterprises. The recipient shall not discriminate on the basis of race, color,national origin, or sex in the award and performance of any department-assisted contract or in the administration of its DBE program or the requirements of Governor's Executive Order 12-02. (38)Hangar construction. If the airport owner or operator and a person who owns an aircraft agree that a hangaris to be constructed at the airport for the aircraft at the aircraft owner's expense, the airport owner or operator will grant to the aircraft owner for the hangar a long-term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose. For the purpose of this section, a long-term lease is defined as not to exceed fifty years. [Statutory Authority: RCW 47.68.090. 13-07-037, § 468-260-030, filed 3/14/13, effective 4/14/13.] Moses Lake Council Packet 11-24-20, Page 79 of 79