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HomeMy WebLinkAboutAgenda Packet 02/01/2005pORTANC;ELES WASHINGTON, U.S.A. AGENDA CITY COUNCIL MEETING 321 EAST FIFTH STREET February 1, 2005 REGULAR MEETING - 6:00 p.m. A. CALL TO ORDER - Regular Meeting (6:00 p.m.) ROLL CALL - PLEDGE OF ALLEGIANCE - CEREMONIAL MATTERS & PROCLAMATIONS WORK SESSION (1) LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS as determined by City Manager or City Council member (2) PUBLIC COMMENT This is an opportunity for members of the public to speak to the City Council about anything. To allow time for the Council to complete its legislative agenda, comments should be limited to no more than 5 minutes per person and a total of l S minutes for this comment period. (These time periods may be lengthened or shortened at the discretion of the Mayor..) FINANCE 1. CH2M Hill Contract Amendment 2. Spot Coating #2 Floating Cover, Project 04- 10A 3. Landfill Compactor Engine Replacement 4. Waterfront Trail Repairs (Paperwork to be handed out before meeting) 5. Chamber of Commerce Contract 6. Economic Development Council (EDC) Contract 7. Request to extend Humane Society Contract by one month ( Verbal ) 8. Vehicle Purchases from State Bid E. CONSENT AGENDA 1. City Council Minutes - January 18, 2005 2. Expenditure Report - January 21, 2005 - $857,324.46 F. CITY COUNCIL COMMITTEE REPORTS G. RESOLUTIONS 1. Approve Amendment 2. Re-Award Contract 3. Approve Replacement 4. Approve Repairs 5. Approve Contract 6. Approve Contract 7. Approve Request 8. Approve Purchase 1. Accept Consent Agenda NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK February 1, 2005Port Angeles City Council Meeting Page- 1 ORDINANCES NOT REQUIRING PUBLIC HEARINGS 1. Adjust City Limits - Mt. Angeles Road 2. Refunding of 1995 G.O. Bonds and 1995 Electric Utility Revenue Bonds OTItER CONSIDERATIONS 1. Request to circulate an Annexation Petition - Pitt - 2.30 acres, Homestead Avenue 2. Request to circulate an Annexation Petition - Andrews - 36 acres, Ahlvers / Laurel 3. Fluoride Discussion re: Potential Advisory Ballot (No paperwork in packet) 4. Approve 3/4 Time Employee to Full Time: City Attomey's Office 5. Set City Council Special Meeting Date to Appoint Planning Commission Members J. PUBLIC ItEARINGS - QUASI-JUDICIAL (7:00 P.M. or soon thereafter) K. PUBLIC HEARINGS - OTHER L. 1. Adopt Ordinance 2. Adopt Ordinances 1. Approve Annexation Petition Circulation 2. Approve Annexation Petition Circulation 3. Discussion 4. Approve Request 5. Set Date INFORMATION 1. City Manager Reports: P.A. Downtown Program Manager's Fourth Quarter Report (Page I00) Change Orders, Contracts under $154K, Bids (Page 108) [] Pool Renovation Implementation Schedule (Page 110) 2. C.C. Humane Society Report - December 31, 2004 (Page 115) 3. Economic and Community Development Year-End Reports (Page 119) 4. Public Works & Utilities Quarterly Report (Page 123) 5. Park Board Minutes - December 16, 2004 (Page 127) M. EXECUTIVE SESSION (As needed and determined by City Attorney) N. ADJOURNMENT PUBLIC HEARINGS Public hearings ars set by the City Council in order to meet legal rsquirsments pertaining to matters such as, land use permit applications, proposed amendments to City land use regulations, zoning changes, annexations. In addition, the City Council may set a public hearing in order to receive public input prior to making decisions which impact the citizens. Certain mattem may be controversial, and the City Council may choose to seek public opinion through the public hearing process. NOTE: HEARING DEVICES AVAIl,ABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK February 1, 2005Port Angeles City Council Meeting Page - 2 pORTANGELES WASHINGTON, U. S. A. CITY COUNCIL MEETING February 1, 2005 CALL TO ORDER - REGULAR MEETING: ROLL CALL: Members Present: Mayor Headrick Councilmember Braun Councilmember Erickson Councilmember Munro Councilmember Pittis Councilmember Rogers Councilmember Williams Staff Present: Manager Quinn Attomey Bloor Clerk Upton B. Collins G. Cutler D. McKeen T. Riepe Y. Ziomkowski /om Other Staff Present: PLEDGE OF ALLEGIANCE: pORTAtNGELES CITY COUNCIL MEETING Attendance Roster DATE OF MEETING: LOCATION: February 1, 2005 City Council Chambers pORTA-¥GELES WASHINGTON, U.S.A. CITY COUNCIL MEETING Attendance Roster DATE OF MEETING: February 1, 2005 LOCATION: City Council Chambers was H]N GTO N, U. S. A. City of Port Angeles Ordinance/Resolution Distribution List City Council Meeting of February 1, 2005 ResolutiOn No. City Manager City Atty. (1) Plannin~ city C~erk Deputy ¢~erk Personnel Cust. Svcs. Finance Police Dept. Fire Dept. Light Dept. Parks & Rec. MRSC;i) PDN (Summary) Extra Coloies ,o.,,,d TOTAL WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Glenn A. Cutler, Director of Public Works and Utilities 5(.A/,~ Amendment No. 1 to the Consultant Agreement with CH2M Hill, Contract #04-11 Summary: It is necessary to amend the agreement with CH2M Hill to provide engineering services related to the design of utility extensions to the proposed annexation area in the western urban growth area (WUGA), as well as expanding the scope of the task of developing an Emergency Response Plan for the Water Utility. A scope and budget for the additional work has been negotiated. Recommendation: Authorize the Mayor to sign Amendment No. 1 to the Consultant Agreement with CH2M Hill, in the amount of $424,059.10, for a total contract amount not to exceed $842,059.10. Background/Analysis: On October 19, 2004, the City signed a Consultant agreement with CH2M Hill to provide a number of engineering services, organized as tasks listed in the table below. There is a need to amend the agreement for two reasons: (1) to provide engineering services related to providing utilities to the southerly portion of the WUGA to support economic development, and (2) to expand the scope of an Emergency Response Plan (ERP) for the Water Utility. The City has committed to extending utility services to that area of the WUGA south of Hwy 101 that has started the annexation process, including the industrial area where a new mill will be cons.t .~cted later this year. The utility extensions will include a new water pump station able to provide 3,000 gallons per minute fire flow to the mill via a 16-inch diameter water line, a sewer pump station and force main, sewer collection lines, a buried electric utility extension, conduit for fiber optics, and service connections. These facilities will be sized to accommodate future growth in the area, including serving some of the area in the WUGA north of Hwy 101. Based on the extensive involvement that CH2M Hill has had in providing engineering services for the City's water system, CH2M Hill was selected to perform the design for extending all the utilities. Task 8 has an aggressive schedule so that construction can be completed on most of the facilities by November 2005. 1 N:\CCOUNCLL~FINAL~anend Nol to CH2M Hill Agreement.doc Under this Amendment, task 4's scope and budget has been increased $5,000 to allow for integration of the Water Utility's draft ERP into the City's Emergency Management Plan (EMP). This will avoid duplication of emergency preparedness plans and provide a template for the other City utilities to use in integrating their plans into the City-wide EMP. TASK Original Amendment Funding Source Amount No. 1 Federal Government, 1. Elwha Dam Removal $71,759.00 $71,759.00 Water Utility~ Mitigation 2. Phase 2 of Concrete $224,160.00 $224,160.00 2002 Water/Wastewater Cylinder Pipe Replacement Bond 3. Develop Vulnerability 2005 Water Utility Assessment-Related Capital $15,423.00 $15,423.00 Budget Improvement Program 2004 & 2005 Water 4. Emergency Response Plan $14,436.00 $19,436.00 Utility Budget 5. Fairmount Pump Station $28,581.00 $28,581.00 ~ 2004 Water Utility Construction Support Budget 6. Update Scope and Budget for Water Projects $3,663.00 $3,663.00 Budget 2005 Water Utility 7. Other Services as Directed $59,978.00 $59,978.00 Varies2 8. West UGA Utilities NA $419,059.00 Utilities3 Total $418,000.00 $842,059.10 Reimbursement of some, but not all, f the costs to be ~rovided by the federal government Directed services are likely to be for Task 1, which will be reimbursed by the federal government. If not, funding source will be the Water Utility. Funding sources will be the Water, Wastewater and Light Operations funds. Due to the urgency of having CH2M Hill start the design work, this amendment was informally discussed at the January 11, 2005 Utility Advisory Committee meeting, but not presented for approval in such detail as herein. A draft of this memo has been provided to the UAC members electronically for review, however. The duration of the agreement will be through August 30, 2006, and based on the completion of all tasks. The agreement was extended from its original January 31, 2006 date to allow for adequate time to complete task 2. Task 2 was originally scheduled to be completed in 2005, but has been delayed due to the urgency &completing task 8 in a timely manner. WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Glenn A. Cutler, Director of Public Works and Utilities Re-Award Spot Coating of the #2 Floating Digester Cover, Project 04-10A Summary: On November 16, 2004, Square Construction, Inc. was awarded a contract for $29,241.00, including tax, to apply coatings to the #2 Floating Digester Cover. Square Construction could not perform the work. Grecor Construction, the second lowest bidder, was requested to perform the work at their bid price of $30,865.50. Recommendation: Award and authorize the Mayor to sign a contract with Grecor Construction, of Olympia in the amount of $30,865.50, for Spot Coating the #2 Floating Digester Cover, Project 04-10A. Background/Analysis: The subject project involves sandblasting and spot coating those areas of the cover for Digester #2 that were found to have not been properly coated during the 1993 Wastewater Treatment Plant (WWTP) upgrade. The areas noted during a recent inspection are along the support ribs for the dome and at the point where the curved dome transitions to the vertical skirt. There was no evidence of coating failure from the coatings that were applied in 1993. This is why staff determined that just a "spot coating" was necessary rather then doing the entire steel structure. This digester had not been inspected since the 1993 plant upgrade. The project was advertised using the City's Small Works Roster on October 28, 2004. Three contractors expressed an interest in bidding on the work. Bids were due November 9, 2004, and three bids were received. The lowest responsible bid, from Square Construction, Inc. of Port Angeles, was 2% under the engineer's estimate. Summar of Bid Results FIRM [CITY I BID (Including tax) Square Construction, Inc. Port Angeles $29,241.00 Grecor Construction Olympia $30,865.50 Extreme Coatings, Inc. Pasco $34,829.28 Engineer's Estimate $30,000.00 N\ UN IL~FINAL~S C #2FI C Pr 04 10A 3 dd : CCO C pot oating oaring over, oj - , re-awar . oc At its November 16, 2004 meeting, the City Council authorized the Mayor to sign a contract with Square Construction, Inc. The Contractor signed the contract, but before Notice to Proceed was issued, Square Construction, Inc. sent a letter to the City notifying it that they "can not do the job on the contract that was signed." Subsequently, to confirm its withdrawal from the project, the owner of Square Construction signed and notarized a statement releasing all interest in the contract. Square Construction will be dropped from the Small Works Roster and considered non-responsive if it bids on any City project on or before December 3 l, 2005, or a later date at the discretion of the City. As the digester needs to be put back into service as soon as possible, staffis recommending that a contract be awarded to Grecor Construction, who as indicated that they will honor their bid price. It is therefore recommended that the City Council authorize the Mayor to sign a contract with Grecor Construction in the amount of $30,865.50. This expenditure will come from the Repairs and Maintenance line item (4810) of the 2004 Wastewater budget, adequate funds of which are being carried over into the 2005 budget. pORTANGELES WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Glenn A. Cutler, Director of Public Works and Utilities Engine Replacement for Landfill Compactor Summary: An urgent repair to the compactor serving the landfill is required due to a major engine failure. Equipment Services will outsource this work to NC Machinery, a local authorized Caterpillar repair facility specializing in this type of equipment. Recommendation: Authorize the Director of Public Works & Utilities to secure the services f NC Machinery to replace the engine. Background/Analysis: The Compactor is a singular piece of equipment at the Landfill, critical to the efficient final compaction of solid waste, that logs over 6000 hours of operation annually. On January 22, 2005, the Compactor had a sudden oil loss that caused the engine to seize. The Equipment Services' investigation indicates that a major failure occurred under the ejector pump, further evidenced by a massive discharge ofoil on the exterior of the engine. As a result, the engine will require replacement in order to make the Compactor operational. It is noted that all appropriate engine operator checks had been performed prior to engine starmp in accordance with standard operating procedures for Landfill equipment. A local Caterpillar dealer, NC Machinery, has provided the estimated cost of repair of$11,230 for parts and $6,550 for labor, for a total of $17,780. Additional miscellaneous expenses and freight for shipping the new engine are anticipated. Funding for the repair will come from reserves on the compactor in the equipment repair and replacement fund. Recommend approval for a purchase order up to $20,000 to cover the cost for urgent engine replacement by NC Machinery. This piece of equipment is considered a pollution control device. 5 N:\CCOUNCIL~FINAL~Landfill Compactor Engine Replacement.t~f WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: To: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Glenn A. Cutler, Director of Public Works and Utilities AWARD OF OLYMPIC DISCOVERY TRAIL EMERGENCY REPAIRS PROJECT NO. 05-05 Summary: Bids were requested from four Small Works Roster contractors to repair storm damage to the Olympic Trail at various locations east of the Rayonier Mill Site. Three bids were received and opened January 28, 2005. Horizon Excavating, Inc. of Port Angeles submitted the lowest responsible bid in the amount of $27,473.55, including applicable taxes. Recommendation: Award the project and authorize the Mayor to sign a contract with Horizon Excavating, Inc., in the amount of $27,473.55 for the Olympic Discovery Trail Emergency Repairs Proj eot 05-05. Background/Analysis: Duringthe period of January 10-14, exceptionally high tides and winter storm events coincided to cause the failure in several locations of the shore revetment currently relied upon to protect a portion of the Olympic Discovery Trail. Specifically, the high-tide and wind-driven wave action caused the heavy loose rip rap to fall from the upland area, leaving several areas of the trail facility exposed to further erosion activity. In some areas, erosion has undermined the paved trail facility and created a safety concern. Due to the nature of the damage, the repairs have been classified as an emergency, and on January 27, 2005, the Clallam County Department of Community Development granted a shoreline exemption with the condition that the repairs be completed by February 15, 2005 in accordance with the requirements of the Washington Department of Fish and Wildlife. Bids were solicited from four Small Works Roster contractors. Three bids were received. The low responsible bid, from Horizon Excavating, Inc., of Port Angeles, in the amount of $27,473.55, is within the engineer's estimate. A summary of the bid results is provided below: Contractor City Bid (Including Tax) Horizon Excavating, Inc. Port Angeles, WA $27,473.55 Primo Construction, Inc. Sequim, WA $30,793.75 Bayview Excavating, Inc. Sequim, WA $33,193.95 Engineer's Estimate $31,000.00 In that this is not a budgeted project it is recommended that funding be from the unallocated portion of the General Fund Projects for Capital Facilities Improvements. It is further recommended that the City Council award the project and authorize the Mayor to sign a contract with Horizon Excavating, Inc., in the amount of $27,473.55 for the Olympic Discovery Trail Emergency Repairs Project 05-05. Attachment: Map N:\CCOUNCIL~FINAL\Water Front Trail Repairs. Proj 05-05, Award.doc pORTANGELES WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: FEBRUARY 1, 2005 CITY COUNCIL MIKE QUINN, CITY MANAGER 2005 Port Angeles Chamber of Commerce Contract for Tourism Promotion Services Summary: As part of the City's 2005 budgeting process, Council approved a recommendation set forth by the City's Lodging Tax Advisory Committee to allocate Lodging Tax funds for tourism information and promotion services to the Port Angeles Chamber of Commerce. A contract for those services has been prepared for consideration by Council. The amount for 2005 is $337,527. Recommendation: Authorize the Mayor to sign the contract with the Port Angeles Chamber of Commerce for 2005 tourism information and promotion services. Background / Analysis: Consistent with the 2005 City budgeting process, a contract proposal relating to tourism information and promotion services has been developed between City staff and the Chamber. The allocation of funds identified in the Council adopted 2005 City Budget were recommended to the City by the City Council's Lodging Tax Advisory Committee consistent with the process required by Washington State Law. The proposed contract provides funding resources and performance expectations in accordance with the Chamber's request and the recommendation by the City's Lodging Tax Committee. Terms of the proposed contract include the following: $55,000: Maintenance and Operation of Tourist Information Facility (the Visitors Center and Chamber Dues) The Contractor will maintain and operate a tourist facility for the distribution of tourist-related information generally considered to be of an informational and assistance nature to tourists or visitors to the community, including travel directions, directions to points of interest, lodging accommodations and other hospitality services, recreational activities, cultural events, emergency services, and other referral services. This funding category also contains a provision for the City's annual Chamber of Commeme Membership Dues. $282,000: Tourist Promotion Services, Special Events The Contractor will provide tourist services in the form a (A) a Port Angeles-specific marketing and special events program and (B) a peninsula-wide joint tourism marketing cooperative. The organizations participating in the joint marketing campaign include Sequim, Forks, Clallam Bay/Sekin, Port Townsend, Jefferson County and Clallam County through the No~h Olympic Peninsula Visitor and Convention Bureau. The contract as proposed also includes the City's 2005 Chamber Membership dues in the amount of $527. In terms of contract changes we (I) referenced all dollar amounts to Exhibit "A", (2) set the term on an annual renewal with a 90-day termination clause, (3) removed the travel reimbursement policy since it is an operational issue of the Chamber and really no longer part of the contract services and (4) required detailed reporting of the full allocation. 7 I:\OFFICE\WPWINkMYFILES\CM Corres~chamber contract memo 05.wpd CONTRACT FOR TOURIST INFORMATION AND TOURIST PROMOTION SERVICES THIS CONTRACT is entered into this day of ., 2005, by and between the City of Port Angeles, Washington, herein after called "City", and the Port Angeles Chamber of Commerce, a non-profit corporation, hereinafter called "Contractor". AGREEMENTS NOW, THEREFORE, in consideration of the above representations and the payments, covenants and agreements hereinafter mentioned, to be made and performed by the parties hereto, the parties covenant and agree as follows: 1. It is in the public interest for hotel/motel tax funds to be expended for tourist promotion services in the City of Port Angeles. 2. Pursuant to RCW 67.28.1815, the City of Port Angeles is authorized to expend special excise tax funds for "pay/ng all or any part of the cost of tourism promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities". "Tourism promotion" is defined in RCW 67.28.080(6)to mean activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists, developing strategies to expand tourism, operating tourism promotion agencies, and funding marketing of special events and festivals designed to attract tourists. 3. The Contractor desires to provide tourist promotion services by: A. operating a tourism promotion agency; Contract for Tourist Information and Tourist Promotion Services Page 1 of 6; G:\Legal_Backup\AGR~EMENTS&CONTRAC~\Cha~ber1-25-05 City: B. advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists and operating tourism promotion agencies; and C. marketing special events and festivals designed to attract tourists. Services. The Contractor will provide the following services for the benefit of the Operation of Tourist Information Facility. The Contractor will operate a tourist facility for the distribution of tourist- related information as follows: (1) The Contractor will furnish the following services: (a) Services generally considered to be of an informational and assistance nature to tourists or visitors to the community, including travel directions, directions to points of interest, lodging accommodations and other hospitality services, recreational activities, cultural events, emergency services, and other referral services. (b) Interpretive displays, audio-visual programs, or other media designed at promoting the City and County tourist attractions. (2) Hours of Operation: The Contractor, to the maximum extent feasible, shall maintain hours of operation for the information facility sufficient to keep it open and available to the public the year around, but particularly, will adjust hours of operation to best cover the peak tourist months. During the generally recognized tourist season, hours of operation, as much as possible, shall be coordinated with the arrival and departure schedule of the Port Angeles-based ferry operations or such other schedule of operation so as to provide optimum coverage in proportion to the demand on the facility for tourist services. (3) Staffing: The Contractor will provide qualified, trained staff to operate the tourist information facility in a professional and competent manner. Contract for Tourist Information and Tourist Promotion Services Page 2 of 6; G:\Le~al_BackuD\AGREEMENTS&CONTRAC~hamberl-25-05 B. Other Tourist Promotion Activities. (See attached Exhibit A for specific dollar amounts which are subject to change on a year-to-year basis depending upon the City budget). The Contractor will perform tourist promotion services in the form of advertising and publicity programs and tourism marketing cooperatives of organizations in accordance with the funding outline and media plan set forth in the attached Exhibit "A". C. Additional Services. The Contractor may provide additional services consistent with those services described in this Section and consistent with the tourism promotion activities authorized by RCW 67.28.1815 and 67.28.080(6), provided that the City will compensate the Contractor for each additional service only to the extent that all services described within this Section have been satisfactorily performed and to the extent that funds remain under the total payment amount set forth in Section 6. 5. Duration of Contract. The performance of the Contractor shall commence on the 1 st day of January, 2005, and continue as an annual contract fi.om year-to-year. The Contract may be terminated by either party at any time and without cause by giving to the other party at least 90 days written notice of termination. 6. Compensation and Method of Payment. The City shall reimburse the Contractor for services rendered as follows: Maintenance and Operation of Tourist Facility and Tourist Promotion Activities. In consideration of the services to be performed with respect to operation of the tourist facilities and other tourist promotion activities, and upon receipt and acceptance by the City Manager or designee of the Contractor's monthly invoices for maintenance and operation expenses and invoices for expenses for advertising and for marketing special events, the City will reimburse the Contractor for services rendered in amounts stated in Exhibit A for each calendar year. Contract for Tourist Information and Tourist Promotion Services Page 3 of 6; G:\Legal_Backup\AGREEMENTS&CONTRACq~Chamber1-25-05 B. Annual Dues. The City will also pay to the Contractor the additional sum as listed on Exhibit A which is subject to change on a year-to-year basis depending upon the City budget, representing dues for the City as a member of the Port Angeles Chamber of Commerce for calendar year 2005. For each calendar year, an Exhibit A will be attached to this agreement. The exhibit will list specific dollar amounts allocated to each service to be performed by the Contractor. The amounts are subject to change each year as authorized in the City budget. 4. Record Keeping and Renortine. The Contractor shall provide the City with the 2004 budget of the Port Angeles Chamber of Commerce, a copy of which is attached hereto as Exhibit "B" and include current salaries and benefits for all employees and classifications of employees, and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. The Contractor shall maintain accounts and records which accurately reflect the revenues and costs for the operation of the Port Angeles Chamber of Commerce and Tourist Information Facility. Accounting for maintenance and operation of the Port Angeles Visitor Information Center, as a separate cost center, shall be maintained by the Contractor. These financial records and all records relating to the performance of this Contract shall be available for City inspection. The Contractor shall provide the City with reports fully describing what work has been performed pursuant to this Contract, how the work relates to the services and activities set forth in Section 1, identifying how the work has contributed to increased lodging visits to Port Angeles, and including a current statement of revenues and costs. Said reports shall accompany the monthly invoices. The final monthly report shall include a complete report describing and detailing how the performance of the contemplated services has been accomplished in accordance with this Contract. The Contractor shall use its best efforts to economize on overhead expenses to the maximum extent feasible in providing the services to be performed pursuant to this Contract. 5. Independent Contractor Status. The relation created by this Contract is that of independent contracting entities. The Contractor is not an employee of the City and is not entitled to the benefits provided by the City to its employees. The Contractor, as an independent contractor, Contract for Tourist Information and Tourist Promotion Services Page 4 of 6; G:\Legal_Backup\AGREEMENTS&CONTRAC~hamberl-25-05 has the authority to control and direct the performance of the details of the services to be provided. The Contractor shall assume full responsibility for payment of all Federal, State, and local taxes or contributions imposed or required, including, but not limited to, unemployment insurance, Social Security, and income tax. 6. Hold Harmless and Insurance. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. The Contractor shall provide a Certificate of Insurance evidencing occurrence-based Commercial General Liability insurance with limits of no less than $1,000,000 combined single limit per occurrence, with the City shown as a named additional insured. 7. Breach. A. In the event of either partes material breach of the terms or conditions of this Contract, the non-breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other fight which State law offers for breach of contract. B. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to terminate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specify/ng the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. Contract for Tourist Information and Tourist Promotion Services Pa~e 5 of 6; G:\Legal_BackuD\AGREEMENTS&CONTRAC~S~hamberl-25-05 8. Non-Discrimination. The Contractor shall conduct its business in a manner which assures fair, equal and non-discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal oppon'unity/affirmative action requirements; and, The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non-discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. 9. Entire Contract. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first hereinabove written. CITY OF PORT ANGELES Mayor ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: PORT ANGELESCHAMBEROFCOMMERCE By: President ATTEST: By: Secretary William E. Bloor City Attorney G:~LegaLBackup~AGREEMENTS&CONTRACTS\Chamberl-25-05 Contract for Tourist Information and Tourist Promotion SerVices Page 6 of 6; G:\Legal_Backup\AGREEMENTS&CONTRACT~hamber1-25-05 Exhibit A 2005 City/Port Angeles Chamber of Commerce Tourism Promotion Funding Outline A. Operation of Tourist Information Facility: Tourist-Related Services $ 55,000 Sub-Total $ 55,000 Co Other Tourist Promotion Activities: Administrative Support Sports and Events Commission Grant Joint Marketing Media and Promotions Sub-Total Annual Chamber Membership Dues: Sub-Total $ 20,000 $ 8O,OOO $ 22,000 $160,000 $ 282,000 $ 527 $ 527 D. Total 2005 Allocation: $ 337,527 l:\city mgr\Chamber Promo Fund Outline 05.wpd 15 Exhibit B 19 Maps ............................................................................. 2 Transportation ............................................................... 3 Events ........................................................................... 4 Weather ......................................................................... 5 Things To Do ................................................................ 6 Olympic National Park ................................................. 7 Hiking, Camping, Mountaineering ............................... 8 Cycling .......................................................................... 9 Kayaking ..................................................................... 10 Sailing & Boating ........................................................ 11 Fishing & Crabbing .................................................... 12 Winter Sports .............................................................. 13 Birding ........................................................................ 14 Golf ............................................................................ 14 Indoor & Evening Entertainment ............................... 15 Attractions .................................................................. 16 Victoria ....................................................................... 17 Community & Relocation .......................................... 18 History ........................................................................ 19 Olympic Coast Cusine ................................................ 19 Restaurants .................................................................. 20 Bed & Breakfasts ......................................................... 21 Hotels, Motels, Cabins ................................................ 22 RV Parks & Private Campgrounds .............................. 23 Vacation Rentals .......................................................... 23 Pod Angeles Chamber of Commerce 121 E. Railroad Ave., Port Angeles, WA 98362 (360) 452-2363 · 1-877-456-8372 Fax: (360) 457-5380 · info@portangeles.org www. portangeles.org Design: ............. InsideOut Solutions, Sequim, WA Copy: ................ Russ Voenema Cover Photos: ...Russ Veenema, Jeff Logan, InsideOut Solutions ~2005 Port Angeles Chamber of Commerce. AIl rights reserved. 1 Miles From Port Angeles Seattle (via Bainbridge ferry) .................... 76 Tacoma .................................................. 110 Sequim ..................................................... 15 Port Townsend ......................................... 50 Forks ........................................................ 57 Clallam Bay/Sekiu .................................... 64 Neah Bay ................................................. 87 Hoh Rainforest ......................................... 88 Hurricane Ridge .................................... 18.5 Marymere Falls ......................................... 20 Victoria, BC (by ferry) ............................. 18 Olympia ................................................. 122 Aberdeen/Hoquiam ................................ 145 Spokane ................................................. 359 Portland, OR ......................................... 255 Sea/Tac Airport ...................................... 125 2 www.po~angeles.org Port Angeles is very easy to get to by air, ferry, boat or auto. Port Angeles is very fortunate to have the Fairchild Interna- tional Airport just minutes away from lodging and recreation activi- ties. Rental cars, taxis, and commu- nity buses all run to and from the airport. The airport is serviced by several charter companies which offer dramatic local scenic flights or executive air charter needs for the business traveler. We have two com- mercial carriers, San Juan Airlines and Kenmore Air Express, with up to I6 flights per day to Seattle. Port Angeles has two ferries that service the city of Victoria. The MV Coho, a vehicle and passenger ferry with departures daily and the Victo- ria Express, ~,, providing passenger-only service with departures daily from May to October. Victoria Express also operates a connecting ferry that provides access to Friday Harbor, 5an Juan Island. Without a car? Clallam Transit has regular bus service on thc north Olympic Peninsula from Sequim, Port Angeles and Forks. Several car rental companies are located at the airport and in town, and t~is are also available. Olympic Bus Line provides regularly scheduled bus service to Seattle and SeaTac A~rport. Pennco Transportation has reservation shuttle service to SeaTac and Seattle. For more information: Aero Exec LLC, (360) 731-0871, www.aeroexec.com Budget Rent-A-Car, 1-800-345-8038, www.budget.com Clallam Transit, (360) 452-4511, www.clallamtransit.com Enterprise Rent-A-Car, (360) 417-3083, www.enterprise.com Kenmore Air Express, 1-800-543-9595, www.kenmoreair.com MV Coho, (360) 457-4491, www.cohoferry.com Olympic Bus Lines, 1-800-457-4492, (360) 417-0700 www.olympicbuslines.com Pennco Transportation, (360) 582-3736, www.penncoshut tie.corn Rite Bros. Aviation, (360) 452-6226, www.ritebros.com San Juan Airlines, 1-800-874-4434, www.sanj uanairlines.com Victor!a Express, 1-800-633-1589, (360) 452-8088, www.vlct orJaexpress.com Washington State Ferries, (206) 464-6400, www.wsdot.wa.gov/ferries www.podangeles.org 3 No matter what time of year you visit Pod Angeles there is bound to be a festival or special event that will make your visit truly memorable, The following is just a partial list of the many festival, events and special entertainment selections that await you in 2005: See www. portangeles.org for details. February 19-21 ........ Red Wines & Chocolate March 26-27 ........... Hurricane Ridge Ski & Snowboard Festival April 15-17 .............5tl* Annual Port Angeles Kayak Symposium April 16 ................... Mustang and Cougar Car Show April 22-24 .............Jazz in the Olympics May 7 ...................... MG's on the Pier May 21 .................... Olympic Cycling Classic May 27-30 ...............12tI' Annual Juan de Fuca Festival of the Arts May 28 ..................... 5~' Annual Halibut Derby May 28-30 ...............Spring Barrel Tasting June 6-10 ................. Port Angeles Renaissance Faire June 12 ..................... Olympic Discovery Marathon June 14 .................... Lipizzaner Stallions June 22 to September 14, every Wednesday, Concert on the Pier Series June 24-26 ..............Strait Bluegrass Festival July 4th ..................... Parade, Entertainment, Firework~ July 15-17 ................ Sequim Lavender Festival July 23-24 ................ Arts in Action Street Fair & Sand Sculpture August 1 ................... Paddle to Elwha. Native American Canoe Journey August 6 .................. Joyce Daze Blackberry Festival August 13-14 ........... History Weekend August 18-21 .......... Clallam County Fair August 27-28 ........... pJRA Junior Rodeo September 3-5 .......... Pirates of Port Angeles September 10-11 ..... Olympic Medical Center IOK Run & Big Hurt September 17 ........... 3nd Annual Grape Stomping Harvest Party September 25 ............Olympic Discovery Bike Adventure October 1-2 .............Strait Thunder Hydro Races October 8-9 .............Dungeness Crab & Seafood Festival October 15-16 ......... Forest Storytelling Festival November 11-13...... Passport To Autumn Wine Tours November 25 ............ 15'~ Annual Festival of Trees Kayak Symposium - April 15-17 If you want to learn the latest in paddle techniques and kayak gear, this is the ~ place for you. Olympic Raft and Kayak =' produces this event which takes place at Hollywood Beach in Port Angeles. www. raftandkayak.com or (360) 452-1443. Jazz in the Olympics - April 22-24 Considered one of the premier gatherings in the country for traditional jazz, this event is guar- anteed to get you out of your seat and toes tap- ping. Ten bands perform at a variety of locations -~= throughout town. www. jazzolymp~cs.com or 888-933 -6143. Olympic Cycling Classic - May 21 A new event for 2005, this century and metric century ride showcases the Olympic Penimula. Organizers planned the route to highlight the mountain vistas, as well as water views. This is a recreational ride and is geared to all tiding levels, www. olybikeride.com or (360) 4574755. Juan de Fuca Festival - May 27-30 Celebrated every Memorial Day weekend for the past 12 years, this festival features over 125 perfor- mances of music, dance and theater from around the world, induding musical workshops, a global market place, public art, and special activities for children, www.juandefiacafestival.com or (360) 457-5411. PA Renaissance Faire - June 10-12 Experience romance and adventure at the Faire at the Clallam County Fairgrounds. Featuring the Seattle Knights~the premiere jousting troupe. Over 150 performers, artists, musicians and ven- dors. www. portangdesfaire.org or (360) 452-6096. North Olympic Discovery Marathon - June 12 This half and fixll marathon uses thc trail described as flat and fast and connects the communities of Scquim and Port Angeles. Run for the personal challenge, but be sure to enjoy the spectacular views, www. nor tholyrnpicdiscoverymarathon.com or (360) 452-2363. Arts in Action - July 23-24 Using the backdrop of the picturesque Port Angeles City Pier and Hollywood Beach, this event has become known for the sand sculpture competition. However, the variety of vendors and food booths will keep you busy for hours. (360) 417-0501. 4 www.portangeles.org Cla0am Count,/Fair- August 18-21 There is nothing like the relaxed atmosphere of a small community rural fair. Rodeos, food, big name entertainment, 4H displays agricul- ture programs and much more. www. clallam.nct/CountyFair or (360) 417-2551. Grape Stomp & Harvest Pa~ty - Sept. 17 Washington is known for wonderful wine and Olympic Cellars has won it's share of awards. However, they also put on a wonderful party to celebrate the fall harvest. Truly a memorable time. www. olympiccellars.com or (360) 452-0160. Olympic Discovery Bike Adventure Sept. 25 Using the Olympic Discovery Trail, this 50 mile recreational ride is perfect for the entire family. Plenty of support and a catered lunch with lots of door prizes make for a fun day. ~ www. olympicdiscoverybike.com or (360) 457-4557. Straight Thunder Hydro Races Oct. 1-2 The natural setting of the harbor is the ideal spot to watch these powerful ma- chines. Selected by the drivers as a premier racing venue, these boats reach speeds of 150 mph and offer a wonderful family experience, www. straitthundcr, com or (360) 452-8248 Dungeness Crab and Seafood Festival Oct. 8-9 Combine food, entertainment, great water- front atmosphere, the ability to catch your own Dungencss Crab from the giant tanks stocked with hundreds of live crab and you have one fun event, www. crabfestival.org or (360) 457-6110 Forest Storytelling Festival - Oct. 15-16 Bringing in some of the best presenters in the country, this festival celebrates the beauty of a good story. Workshops, concerts, and the ability to learn from the best make this a very enjoyable few days. (360) 452-6719 For more information, locations and reservations: Port Angeles Chamber of Commerce, (360) 452-2363, vee~w, por t angeles.ors PeninsulaEvents.com, www. peninsulaevents.co m Port Angeles enpys a coastal climate arid is mild throughout the year. Temperatures during tlqe daytime range from the 40's in winter months to tile 70's in the summer months. Average rain fall is 25 inches per year for Port Angeles. Two major natural features; water and mountains impact the weather of Port Angeles. The water, which nearly surrounds the area, keeps the temperature amazingly comfortable on a year-round basis. Seldom does it get real cold, and the summer has surprisingly low humidity. The Olympic Mountains also play a big role in influencing the weather. Because they rise over 7,000 feet and are south and west of Port Angeles, the mountains create a rain shadow effect for the Port Angeles/ Sequim region. This combination of a temperate climate and a reasonable amount of rain makes it not only ideal for human beings but plants love it also, which is why flowers, gardening, and boutique farming are so popular. AVG. ~G. ~ AVG. ONLY IIGU DAILY LOW ~ T~TFm 11~1~ JAN. 45 33 4.4 45 FEB. 48 36 3.1 46 MAR. 50 36 2 47 APR. 55 39 1.1 49 MAY 61 43 0.9 51 JUN. 65 48 1 52 JUL. 69 51 0.5 53 AUG. 68 51 1.1 54 SEPT. 66 49 1.1 52 OCT. 58 39 3.3 50 NOV. 50 38 3.8 50 DEC. 46 35 4.4 47 For more information; Port Angeles Chamber of Commerce, (360) 452-2363, www. por tangeles.o rg/weather www. poflangeles.org 5 Spend afew hours or a few days in Port Angeles and you will agree that Port Angeles is truly the Center of it All. Deciding on what to do is always a tough decision when on vacation, and in an area like the Olympic Peninsula the choices become difficult, because there is so much to do. We hope this list will help with the decision process Have a few hours? Drive to Hurricane Ridge, which is 40 minutes each way, and reward yourself with the views. Rent a bike and cruise the waterfront trail. · Stop by the Arthur Fiero Marine Science Center and experience thc touch tanks. Watch the sun rise or set from the observation tower located at the City Pier. Olympic Game Farm allows you to get up close to bears, lions, zebras, and more all from the comfort of your car. Pick up a walking map at the Visitor Center and take the self guided Art on the Town Tour. Learn about the history of the area with guided or self-guided Heritage tours or stop by the Clallam County Musemn lo- cated in thc Federal Building and restored Carnegie Library. The Fine Arts Center features work from Northwest art- ists, and a unique outside art exhibit spread over five acres. Taste thc wines produced locally at one of our excellent wineries. Wander through the unique shops and galleries downtown. Purchase some fresh fish or smoked salmon for a tree taste of the Northwest at FAwha Fish Company. Take your kids to the super Dream Playground on Race Street. · Go to Francis Street Park and enjoy the water view. Test yourself with a route on the indoor climbing wall at Olympic Mountaineering. Treat yourself to local farmers markets Saturdays and Wednesdays. ~i~ke a Harbor Cruise which sets sail from the Port Ange- les City Pier. Visit the Olympic Coast Discovery Center at the Landing Mall. Go antiquing. Day Trips: · Rent a kayak and experience the area from a water view (guides available). · Take a hike. There are many to choose from but to get you started try the Madison Fails, Sol Duc Fails, or Mary- mere Falls Trails. Pack a picnic lunch and head out to thc ocean beaches or the Hob Rain Forest. Get some sand in your toes at Second Beach by La Push. Experience the crashing waves at the most northwestern point of the US, the Cape Flattery Trail. See the Native American culture preserved at the world famous Makah Cultural Center. Relax and enjoy the turquoise waters of Lake Crescent. December-March rent some x-country, or snow shoes and experience the trails of Hurricane Ridge. Hire a fishing guide and cast for fi'esh or saltwater beandes. Drive to Dungeness Spit and enjoy bird watching while enjoying the view over the Strait. · Visit the lavandar fields of Sequim. Experience the history of Fort Worden in Pt. Townsend. Take a raft trip on thc Elwha River. Hop on a ferry and visit Victoria for a touch of old Eng- land or the San Juan Islands. Tour the Butchart Gardens in Victoria, B.C. Drive to Salt Crexk State Park at low tide for great tide pools. Tour the Timber Museum in Forks and learn the history of logging. Visit the Wooden Boat Museum in Port Townsend. For more information: Clallam Bay/Seldu Ch~tmber, (360) 963-2339, www. clallambay, com Forks Chm, nber of Commerce, (360) 374-2531, www. forkswa, com North Olympic Peninsula Visitor Bureau, (360) 452-8552, www. olympicpeninsula.org Port Angeles Chamber of Commerce, (360) 452-2363, vcww. portangeles.org Port Townsend Chamber of Commerce, (360) 385-2722 www. ptguide.com Sequim Chamber of Commerce, (360) 683-6349, www. cityo fsequim.com 6 www. portangeles.org In 1909, President Theodore Roosevelt issued a proclamation creating Mount Olympus National Monument to protect the summer range and breeding grounds of the Olympic elk. Mount Olym- pus National Monument was transferred to the Na- tional Park Service administration in 1933. National conservation organizations supported Washington Congressman Monrad C. Wallgren's 1935 bill for the establishment of a national park. After a visit to the Olympic Peninsula in the fall of 1937, President Roosevelt added his enthusiastic support to the movement for a national park. Olympic National Park was established on June 29, 1938. The coastal strip was added to the park in I953. In 1976, Olympic National Park became a Man and the Biosphere Reserve and in 1981 it was designated a Worm Heritage Park. Port Angeles is the Centgr ofitAll for Olympic National Park. Hurricane Ridge is only minutes away. Lake Crescent, Mary- mere Falls, the E!wha River Valley and Sol Duc Hot Springs are just short drives on Hwy. 101. Three Parks in One Olympic National Park has three distinct major areas~the gla- cicrcd mountains and high country of the interior; the lush rain forest of the west-facing valleys; and the rugged wilderness coast- line. The vastness of the park can seem daunting--you can drive completely around the park on Hwy. 101 but no road goes all the way through the interior of the peninsula---but there are few areas that will allow you to experience the character of the "three parks." Hurricane Ridge Hurricane Ridge, only minutes from the center of downtown Port An- geles, offers spectacular views of the high country and the Olympic Mountains. The 19 mile drive is breathtak- ing and you can stop at the Hurricane Ridge Lodge and learn more about thc mountains and the park. Hob Raie Forest Moisture-laden air from the Pacific brings an average of 140 inches of annual rainfall to the Hob Valley. This moisture has created one of the lushest rainforests in the world. Drive about two hours west from Port Angeles on Hwy. 101 to thc Hoh Rain Forest Visitor Center. The Visitor Center is nineteen miles inland from Hwy. 101. Three loop trails near the Visitor Center are easy to stroll and give a great sampling of the area. The Center is also the kick-off point to climb Mt. Olympus. Rialto 8each and La Push The rugged coastline of Olympic National Park can be easily explored at Rialto Beach and La Push. Take Hwy. 101 west from Port Angeles for about one and a half hours and turn west on State Hwy. 110. On the north side of the Quillayute River is Rialto Beach. A beautiful spot to enjoy the surf and rugged beach. On the south side of the Quillayute River is the Quileute Indian village of La Push and First Beach and south to Second Beach. This northwest coast experience will leave you in awe of the beauty of Olympic National Park. More Intormation Olympic National Park is open ail yeah Some roads and facilities are dosed in winter. Entrance fees (good for 7 days) are collected at various locations within the park from May through October and Hurricane Ridge year round. Cost is $10 per vehicle. Annual entrance passes can be obtained at entrance stations for $30. For visitor information you can contact the Olympic Park Visitor Center, (~360) 565-~130 or visit the website at www. nps.gov/olym www.podangeles.org 7 There s no better way to absorb natures bounty than to be surrounded by It on a trail any trail Port Angeles' 'back door paths" range fro~ gentle to aggressive ali rew~rding hikers with superb flora fauna and views Hiking Marymere Fails ,Spruce Railroad Trail, Htltricane Ridge Trails, Ocean Beaches Hiking is a passion for many that come to Olympic National Park and nowhere will you find the diversity of hikes in such a short distance like you will find on the Olympic Peninsula. From the moisture laden moss covered trails of the rain forest, to the wild trails along the ocean where the Pacific waves are crashing just steps away. Then there are the beautiful tree lined hikes back to a secluded waterfall, and topping them all are the high country hikes where the views seem to go on forever. For the more adventurous there is wilderness and back country hiking where you can go days and not see any- one or hook up with a guide and experience a mountain- eering outing all the way to the glaciers. As you can see, the hikes are truly amazing. Camping Camping can have a variety of meanings, depending on whom you ask. For some it means hiking to a remote lake with all your gear in your backpack and not seeing another hu- man for the week. To others having the ability to drive to the site with all the gear in the back of the van and have the amenities of showers, toilets, and family play areas, makes the most sense. Finally there are those with fully stocked and self contained luxury RV motor homes and trailers that create the best camping memories. Well not to worry, Olympic National Park and the surround- ing area offers something for everyone. The "Park" encom- passes over one million acres with the majority holding the wilderness designation. ~ For the back country hiker/camping enthusi- ast there are few better places to get-away from it all. Port Angeles has local guide and outfitter shops that can help design a trek that will suit your ability and time. There are also state, county and national campgrounds scattered all through the Olympic Peninsula giving you the opportunity to choose from a mountain setting, to a campsite within ear shot of the breaking waves. If you need a spot to park your rig for the week, there are over a dozen locations for you to select from. Many with full hook-ups and RV supplies. For additional information and help please contact: Brown's Outdoor, (360) 457q 150, www. brownsoutdoor, com Clallam County Parks and Recreation, (360) 417-2291 www. clallam.net/park Olympic Mountaineering, (360) 452-0240, www. olymm.com Olympic National Park, (360) 565-3130, www. nps.gov/olym RV Parks Association of Clallam County, www. northolympic.com/rvpacc Swaln's General Store, 360-452-2357, www. swainsinc.com Washington State Parks, (888) 226-7688, www. parks.wa.gov Seepage 23 of this planner for a ~st of RV Parks and Campground~. 8 www.portangeles.org The Olympic Discovery ]'raii is a uniquepa,:e." .~ off-highway trail that s ga~r'ing i, popuiarily every year, Here are a few ideas as to nnw to best take advantage ol this biking gem Ride One Option: The Out And Back. Stay in Port Angeles and have breakfast with your B&B host or use a hotel and breakfast at a restaurant in town. Then head east on the Olympic Discovery Trail for the community of Sequim. During this ride you can divert to the Dungeness Spit for a hike, picnic at one of the tables on the bluffoverlook- lng the Strait with Victoria in the distance or stop in to the Audubon Center at Railroad Bridge Park and learn about our local bird population. Ride l~vo 0ptJon: Two Night Cycle Cruise Certainly a very relaxing way to experience the Olympic Discovery Trail would be to combine the ride with two nights oflodging. Night one, stay in Port Angeles at one of the many lodging choices and have din- ner at one of many great restaurants that are throughout the town. Check with your lodging host or the Cham- ber of Commerce for restaurants that are close to where you are staying. After breakfast with your host, pick up a picnic lunch and then hop on the bike and head east on the Olympic Discovery Trail. When you reach Old Olympic Highway, turn south for the short ride to the Olympic Cellars Winery, which is located just east of the corner of 101 and Old Olympic Highway. Relax and enjoy the spectacular views of the Olympic Range and then sample some of the terrific wines in the comfortable surroundings of the tasting room. Then it is on to your second night either at a B&B or one of the many lodges in the area. Pamper yourself with an in room massage, enjoy the spectacular views of the Olympic Moun- tains or perhaps a view of the water. Dinner can be as simple as ordering a pizza, or try one of the local restaurants. The next day, finish your ride on the Discovery Trail out to the John Wayne Marina. There are several choices for lunch along the route. Then you can either take the Clallam Transit bus back to Port Angeles, (they have bike racks) or take the 25 mile trail back. (Clallam Transit does not operate on Sunday.) Be sure to stop and enjoy the views and relax while sitting by the several streams you will be crossing over. Of course, the last few miles as you enter Port Angeles are memorable as you bike right along the water. Ride Three Option: Bike For A Week Make it a week of biking. After biking in Port Angeles, put your bike on the Coho or Victoria Express for biking adventures in Victoria. Then you can connect via the Victoria Express to San Juan Island, where terrific island biking awaits you. Remember, you will need to dear customs, so it is helpful to have a passport or birth certificate. For more information about the Olympic Discovery Trail go to: www. olympicdiscoverytrail.co m Remember to check back every few months for trail updates as new sections are added with the ultimate goal ora trail from Port Townsend to the Pacific. There are many other rides ideal for the extreme mountain biker, or the road bike enthusiast. Check with the local bike shops for a ride that best suits your skills and ability. Here is a list of additional places to find more options, rides and equipment: Beckett's Bike Shop, (360) 452-0842, beckbike@olypen.com Mike's Bikes, (360) 681-3868, wvw. mikes-bikes.com Olympic National Park, (360) 56403130, www. nps.gov/olym Olympic Discovery Trail, (360) 457-1640, www. olympicdiscoverytrail.com Sound Bikes and Kayaks, (360) 457-1240, www. soundbikeskayaks.com www.portangeles.org 9 The sport of kayaking is truly turning into one of the more popular active oriented family outings. The Port Angeles area is unique because from one destination you can access flat water, white water and sea kayaking. Listed below you will be led to just a few of the many popular sites in and around our community, and some of the local merchants that can help you in town and online. Ediz Hook * Rating: easy Travel along the waterfront of Port Angeles on Front Street and head out to Ediz Hook, a natural sand spit ending at the Coast Guard Station. Along the way are several areas to park and launch your kayak. Paddling around in the harbor is fasci- nating. The views are stunning of the town, with the towering Olympic Mountains behind it. But the up close and personal view of the log storage areas, ships at anchor, pilot boat activ- ity, Coast Guard helicopters, and salmon fish pens will keep you entertained and busy looking. Also look for harbor seals, sea lions and bald eagles. A fun thing to do is paddle from the "hook" to Hollywood Beach by the City Pier. Here you can stop and rest and have a snack at a waterfront caf~ or restau- rant. You can proceed further east along the waterfront or head back to the "hook" whenever you have had enough. Lake Crescent - Rating: easy Drive west from Port Angeles on Highway 101 for a beautiful 17 miles. This spectacular mountain lake within Olympic National Park allows you m schedule a full day of activities. There are waterfalls to explore, trails to walk and restaurants with views oftbe lake. The area offers some wonderful flat water lake kayaking and there are several points to launch from and over 30 miles ofshorellne to explore. The lake is known for crystal dear water with visibility up to 100 fi. There are very few powerboats that use the lake and jet skis are not permitted. The wind can come up, espedafly from the west, in the afternoon and the area around the Log Cabin Resort is often the least affected. Freshwater Bay - Rating: moderate te advanced Proceed west on Highway 101 from Port Angeles to State Rt. 112. Take Rt. 112 to Freshwater Bay Road, turn right and you will end up at a Clallam County boat launch. The area is pro- tected and offers an ideal area to start your paddle. This section of rugged coastline often more wind and wave action than some of the other trips mentioned but vistas, wildlife and sealife make the little more work worth the effort. Be aware of your abilities and don't over ex- tend yourself. The tides and wave action can sometimes make it more difficult to get back. Olympic Coast & Sol Duc River - Rating: expert to extreme Take 101 west to State Rt. 110 west and you will find yourself in the Quileure Indian Reservation and the town of La Push. During the winter months and into spring the waves are big and the rivers run fast, which means great conditions for the latest use of kayaks; surf kayaking, and white water river kayaking. The beaches of Rialto, First, and Second are favorite spots with winter waves reaching 20 feet. Due to the high waters, debris can ofren be dragged into the surf, so be aware and note that conditions here change quickly and should only be challenged by the most advanced paddlers. The headwaters of the Sol Duc River start high in the Olympic Mountains, and winter through early summer the rapidly flowing water offers some terrific kayak opportunities for the expert rider. Local riders have favorite spots where the river forms continually cresting waves giving the rider great opportunities for surfing. Again this form of kayaking is only for the advanced and helmets, and dry or wet suits are recommended. For additional Information and more paddle experiences please contact: Jalventures Through Kayaldng, (360) 417-3015, www. atkayaking.com Fairholm General Store, (360) 928-3020 Olympic Raf~ & Kayak, (360) 452-1443, www. rafrandkayak.com Sound Bike~ ~nd Kayaks, (360) 457-1240, www. soundbikeskayaks.com 10 www.portangeles.org There are not very many locations that can offer the diversity of boating that the Northwest has to offer. Port Angeles was discovered in 1769 because of the wonderful sheltered harbor and deep water access and throughout the years has been a welcome site for the ships coming in from the Pacific. There is much more to boating in the area than just being a safe haven for large ships. Port Angeles is directly associated with some of the finest cruising anywhere. A short 18 miles across the Strait of Juan de Fuca lies thc famous San Juan and Gulf Islands, truly a boaters paradise. There are two marinas in the area. The Port Angeles Boat Haven at 48 deg 07.TN, 123 dog 2TW, offers transient moorage, gas, diesel, power, ice, fresh water, boat hoist, launching ramp, restrooms, showers, waste pump-out, bait and tackle. Next to the marina the Boat Yard provides covered and open work areas, a 133 ton marine railway and a 40 ton straddle hoist. The town of Port Ange- les offers all you will need for provisioning, restaurants, and marine repair. The City Pier has transient moorage available during the summer months and is situated within walking distance of several fine restau- rants, the visitor center and a marine science center, which is definitely worth a visit. Port Angeles offers customs clearance at either the City Pier or at the Boat Haven. Nearby in Sequim the John Wayne Marina, (yes, it is named after the Duke) 48 deg 03.95'N, 123 deg 02.31'W, offers a great park like secluded location in Sequim Bay. The marina is well protected by a massive breakwater and has transient moorage, power, water, gas, diesel, restrooms, showers, laundry facilities, dump station, and waste pump out. There is a marine store on site, which is well stocked and a small restaurant. Also in Sequim Bay is the Sequim Bay State Park. This 92 acre park is located on the west shore. Mooring buoys are available, with restrooms, show- ers and campsites on shore. There are several excellent anchorage options in Sequim Bay should you wish to not take advantage of the shore facilities. The com- munity of Sequim is a few miles away and has several grocery stores and many restaurants to choose from. Cab service is available from the marina. If you have your bike on board, the Olympic Discovery Trail is easily accessed, which offers a scenic and easy ride in to Sequim. For the smaller boat enthusiast the Port Angeles area has some great options. Lake Crescent, with its turquoise blue water and mountainous shore line, is one of thc prettiest boating experiences available. The lake is very deep and very cold, but you will be rewarded with the feeling of having the lake to yourself. Fairholm General Store is on the South tip of the lake and offers a boat ramp and country store. A second boat ramp at the Storm King Ranger Station is operated by Olympic National Park. Turn at Lake Crescent Rd. at the Lake Crescent Lodge turn off. A third boat ramp is available at Log Cabin Resort, which can be reached by turning to the north on East Beach Road. Rental boats are also available. If you don't have a boat but want to experience being out on the water, Seventh Wave Yacht Charters offers harbor cruises several times each day during the summer months. For more Information: Fairholm General Store, (3fi0) 928-3020 John Wayne Marina, (360) 417-3440, www. portofpa.com Log Cabin Resort (360) 928-3325, www. logcabinresort.net Port Angeles Boat Haven, (360) 457-4505, www. porto~a.com Port of Port Angeles, (360) 457-8527, www. portofpa.com Seventh Wave Yacht Charters, 360-808-8505 www. porlangeles.org 11 Port Angeles offers some of the best sport fishing in the country. Deep sea, lake, stream, river and even shell fish. Be sure you have the proper state fishing license before you start. You will also need to know the seasons for the different species of fish and locations where you can fish. The best place m find this information is in More Information listed below. Out in the Strait of Juan de Fuca you will be able to go a~er huge halibut and salmon. Shell fishing is also very popular in the area and crabbing for the famous Dungeness is a passion for some. The area also offers fantastic river fishing. The Dungeness, Elwha, Bogachiel and Sol Duc Rivers are all short drives from Port Angeles and there are several areas where you can put-in with drift boats or walk down to the river for wading access. Guides are available or, of course, you can go out on your own. These are some of the more popular fishing spots and boat launches around Port Angeles: Lakes Lake Aldweli West from Port Angeles 9.3 mi on Hwy 10l, right .7 mi on Lake Aldwell Rd. Lake Sutherland South from Port Angeles 12 mi on Hwy 10l, left 1.7 mi on South Shores Rd, right 150 ft on Yew Tree Dr, left into parking. Rivers Bogachiel River at Leyendecker Park West from Port Angeles, 55 miles on Hwy 10l, turn right on SR 110 (LaPush Rd.), drive 8 mi, turn right on Mora Rd., drive .3 mi, left at County Park R. Bogachiel River at Wilson Bridge West from Port Angeles, 55 miles on Hwy 101, turn right on SR 110 (LaPush Rd.), drive 5.8 mi, turn left on Wilson Rd., drive about 1 mi to end. Elwha River at Port Angeles West from Port Angeles 5.1 mi Hwy 101, north .6 mi on Laird Rd. (Lower Elwha Tribal Center), west on Elwha River Rd..8 mi, left on Crown Z Water Rd., access on left. Elwha River at Department of Transportation Site West from Port Angeles 5.1 mi on Hwy 101, north .6 mi on Laird Rd., west 1.1 mi on Elwha River Rd., left after Elwha River Bridge. Sol Duc River at Bear Creek West from Port Angeles 41.7 mi on Hwy 101, turn right on Hilstrom Rd., drive .6 mi. Sol Duc River Salmon Hatchery West from Port Angeles 44.5 mi on Hwy 101, right on Mary Clark Rd, immediate right at Public Fishing/Hatchery Rd sign, access on right. Salt Water - Strait of Juan de Yuca Ediz Hook Boat Launch Located on Marine Drive on Ediz Hook, just south of the Coast Guard Station. Space for parked trailers is limited. Port Angeles Boat Haven Boat Launch Two launch ramps. The inner ramp is restricted during the summer. The 2-lane outer ramp located to the west of the Boat Haven also shares a parking area with the Boat Haven. Space for vehicles pulling boat trailers is limited. Dangeness Bay Boat Launch Take Highway 10l east from Port Angeles and turn left on Kitchen-Dick Road. Proceed to the end of Kitchen-Dick and it turns into Lotzgeselh Proceed on Lotzgesell to Cays, turn left, follow Cays to Marine Drive, turn right and the boat launch area is about a half-mile on the left. John Wayne Marina Boat Launch - on Sequim Bay Take Highway 101 cast from Port Angeles to just east of Sequim, approx. 19 mi., turn le~ on Whitefeather Way. Turn left on West Sequim Bay Road and then into the marina. The marina has a two-lane ramp in a protected area of the boat basin. Large parking area offers parking for vehicles pulling boat trailers. For more information, licenses & equipment: Alaska Fatwest CharterdFatwest Fish Camp, (360) 457-6585, www. alaskafanvestfishing.com Port of Port Angeles, (360) 457-8572, www. portofpa.com Swaln's General Store, (360) 452-2357, www. swainsinc.com Topwater Charters, Inc., (360) 460-7479, www. fishingneahbay, com Washington State Fish & Wildlife, (360) 902-2200, www.wa.gov/wd fw Waters West, (360) 417-0937, www. waterswest.com www. podangeles.org For some outdoor enthusiasts, seasons don't change, equipment does. Bikes go on the rafters, skis come down; hiking boots go into storage, snowshoes take their place. On the nodh side of the Olympic Peninsula, you can accept or reject this change of seasons and equipment. Here, you can hike and bike year-round. Sure, you probably need rain gear and an extra layer of clothing, but "summer sports' can be played around the calendar near Port Angeles. "Winter sports" are limited to a season or two, though, with snow-top adventure lasting as long as thc snow does - from 3-5 months. Hurricane Ridge, just minutes from downtown Port Angeles, is the local haven for cross ' country skiing, snowshoeing, snowboarding, downhill skiing and tubing. It is part of the Olympic National Park and one road will take you from sea level in the city to the near-mile high winter recreation mecca of the Park. Snowshoeing becomes more popular every season. It's an easy way to keep hiking when the trails go white. The most challenging part for most newcomers is putting their shoes on properly. After that, it's literally a walk in the Park in any direction you choose. National Park rangers offer guided walks Friday, Saturday, Sunday and holiday Mondays at 2 p.m. Aluminum-framed shoes are provided on the 90-minute loop and a $2 donation covers the walk, the talk and the equipment. Early arrival is advised. Space is limited. The Ridge offers 20 miles of trails, so if you want to shoe-offor cross-coun- try ski offon your own, thc Klahhane Ridge and Wolf Creek trails offer scenery and serenity. If you don't mind a few others sharing the trail with you, the short trek up Hur- ricane Hill affords you a magnificent vantage of surrounding peaks and valleys. Shoes and Alpine skis can be rented at several places in Port Angeles and at the rental shop in the Hurricane Ridge Lodge. Downhill skiers don't get the vertical drops of the Cascade re- sorts, but they don't get the long lines or high prices either. The only place to downhill ski in the Olympic Mountains, Hurricane Ridge offers two rope tows and a Poma lift with runs that range from beginner to expert. Snowboarders can purchase a lift ticket and take advantage of the rope tows and Poma lift, or they can use their own loco- motion and venture to the top of Hurricane Hill. Basically, all hillsides and bowls deemed safe are open. Common sense and a quick-check with a ranger is strongly recommended. Tubers and sliders have two areas to frolic in the snow. The Sunrise Family Snowplay Area, located one mile north of the Visitor Center, is open for children and families. There is also a Tiny Tots Snowplay Area for very small children adjacent to the Visitor Center. In addition to ranger as- sistance and equipment rental, the Hurricane Ridge Visitor Center of- fers interpretive exhibits and food service. Winter hours are Fridays through Sundays plus holiday Mondays, 9-4. Winter weather changes rapidly so always call for road conditions before venturing up the Hurricane Ridge Road. (360-565-3130 live; 360-565-3131 for an updated record- ing). There is an access fee of $10 per vehicle for entering the Olympic National Park or do the smart thing and buy a one- year pass for 0nly $30. For more winter wonderland info: Brown's Outdoor, (360) 457-4150, www. brownsoutdoor, com Hurricane Ridge Ski Area, (360) 457-4519, www. hurricaneridge.com Olympic Mountaineering, (360) 452-0240, www. olymtn.com ONP Hurricane Ridge Condldon$, (360) 565-3131 www.podangeles.org 13 The Olympic Peninsula offers habitat for thousands of birds from over 200 different species, attracting bird watchers and re- searchers from the US and the world. Popular viewing areas for birds include: Port Angeles Waterfront and Ediz Hook Here find large numbers ofshorebirds, sea ducks, Brants, gulls, and raptots. Dungen~ National Wildlife Refuge Take Hwy. 101 east to Kitchen-Dick Road. Turn left (north) on Kitchen-Dick. The Refuge will be about 2 miles on your left. The Refuge protects critical habitat and nesting sites for migrating and resident waterfowl. Many viewing opportunities exist. Portions of the Refuge are dosed to the public to provide sanctuary for birds during critical migration and nesting times. Olympic National Forest: Upper Waters of Dungeness and Gray Wolf Rivers Directions can be obtained online or at the Port Angeles Visi- tor Center and at the Olympic National Park Visitor Center. Mountain species here include Dippers in the rivers, Hermit Thrushes in the thickets, and American Pipits, Horned Larks, and Gray-crowned Rosy Finches near the high peaks. Olympic National Park at Hurricane Ridge Mountain birds include Ravens, Steller's and Gray Jays, Townsend's Solitaires, and Golden Eagles. One can hear flight-calls of Marbled Murrelets as they drde over the old-growth forest at dawn. Oungeness River Audubon Center at Railroad Bridge Park Thc Olympic Peninsula Audubon Sodety conducts several bird counts each year and visiting bird watchers are encouraged to call for information on recent bird sightings and counts. Free, guided bird wa[ks, are conducted each Wednesday at 8:30 a.m. For additional information: Dungeness River Audubon Center, (360) 681-4076, www. dungenessrivercenter, org Olympic Peninsula Audubon Society, wve,v, olympus.net/opas Located on Golf Course Road at the east end of Port Angeles this private dub offers an 18-hole par 72 course. Views of the Strait of Juan de Fuca and Victoria await the player. Limited play allows for under four hour rounds. You will need to be a member of another private club in order to play and you must have ID from that club. Pro shop and snack bar. This public course is accessed by taMng H~. 101 e~t out of Port ~geles to Kitten-Dick Rd. Turn left on ~tchen-Dick and proceed to Woodcock, turn right and the course is a mile down the road on your le~. Dungeness is an 18-hole par 72 course wi~ pro4hop, drMng r~e, sna& b~, ~ll-se~ice r~taur~t ~d lounge. ~d~ng is av~lable on site at the Gr~t ~ ~nd~. Sky ~i~e Go~f ~1~ This is a ten-hole ]inks-s~le course t~at is open to the public. The ten holes allows golfers that play 18 to have ~o finishing holes. ~e Gcil- i~ ~so offers lemons ~d a driving range. Take 10] e~t turn left on Carlsborg, then right on Old Olympic Highway The course will be on your le&. Dungeness Golf & Country Club, (360) 683-6344, www.dungcncssgolf, com Great Links Resort Condos, (360) 683- 7337, www. greatlinks.com Peninsula Golf Club, (360) 457-7348 Sky Ridge Golf Club, (360) 683-3673, skyridgegc@olypen.com 14 www.portangeles.org Sports ~tfie/d Magazine lad many reasons for leering Po~t Angeles as Washmgton's Besl Outdoor Sports Town a few years ago, but there's plenty [o do/ndoors here, too When inclenlent weather arrives there is ,~ craving for inside act vity ~md tlqe area provides manv diversions Bowling In Port Angeles you can roll on 32 lanes up to 110-hours a week. In addition to open, no-reservation-needed bowling, both alleys in town offer weekend features. Laurel Lanes has a special large-pizza and two lanes for two hours on Friday nights. Port Angeles Lanes also houses thc Je~-LX Lab, a fantastic computer gaming experience. Health Clnbs The Port Angeles YMCA and Curves for Women both offer day passes and welcome visitors. At the Y, you'll find a basketball court, racquetball courts, car- diovascular rooms, free weights, machines and separate men's and women's saunas. Rock Climbing Wail ~ There's more than 4,000 square-feet to climb, including a 35' tower, at the Olympic Mountaineering rock wall. With modular holes, you can select how difficult a course you want from 5.0 to 5.13. If there's not a ready route, one will be created for you. The facility is open to all ages with classes available six days a week. Casino Gaming and entertainment abound. Just 21 miles east of Port Angeles on Highway 101 is 7 Cedar$ Ca$ino, a Vegas-style casi- no with craps tables, a poker room, roulette wheels, keno boards, slot machines, card tournaments, and special events, including shows by nationally recognized performers, live music three nights a week, a fidl-service res- taurant, a deii, a ~ shop and a smoke shop. A courtesy van or limo will pick you up and drop you offat your motd in Port Angeles. After Dark Active and retired profes- sional musicians from all over the Olympic Peninsula come together to perform as the Port Angeles Symphony Orchestra. World-class guest artists regu- larly join the local ensemble. Port Angele~ Light Opera will be performing their 23nd produc- tion this summer. PALOA players provide year round entertain- ment. They can also be booked for events or meetings. The Community Playhouse provides a stage for the Port Angeles Community Players. The local thespians put together an annual five-play season between September and June. Nearby Sequim is home for the Olympic Theatre Arts, offering four evening and matinee performances each year during the same season. Lovers of the silver screen have two film viewing options in the area. The Deer Park Cinemas on the east side of Port Angeles offers five theatres. The downtown, 1920's-era Lincoln The- atre once held a thousand movie patrons. Renovated in the mid-1980's, the theatre retained its classic marquee and feel while dividing itself into three smaller theatres. For more information contact the following: Curves For Women, (360) 565-0199 Deer Park Cinema, (360) 452-7176, www. olypen.com/movies Laurel Lanes, (360) 457-5858 Lincoln Theatre, (360) 457-7997, www. olypen.com/movies Olympic Mountaineering, (360) 452-0240, www. olymtn.com Olympic Theatre Aru, (360) 683-7326, www. olympictheat rear ts.org Port Angeles Community Players, (360) 452-6651, www. ten forward.com/pacp Port Angeles Light Opera A.~oclafion, (360) 457-5630, www. paloa, org Port Angeles Symphony Orchestra, (360) 457-5579, www. olypen.com/pasympho ny YMCA, (360) 452-9244, www. ccfymca.org www. portangeles.org 15 The Olympic Game Farm The Port Angeles area is known for it's endless rec- reation options. But there are many other things to do that educate or entertain. Located between Port Angeles and Sequim, the Olympic Game Farm offers the opportunity to get up dose to Bear, Elk, Buffalo, Zebra, Llama and much more wildlife, all from the comfort of your car. The driving tour com- bined with feeding the animals right from your window is a memorable experience. Winery Tours Four local wineries produce some great product and over the last several years ~ have gained a good deal of notoriety on the wine scene. Stop in and do your own taste tests, or visit during the many special events the wineries produce throughout the year. Port Angeles Fine Arts Center This award winning small center situated on a bluff overlooking Port Angeles and north to Victoria BC changes the art displays every few months. They specialize in northwest artists and a unique outdoor display, which uses 5 acres of woods as the backdrop, with walking paths directing you to the artwork. Arthur Fiero Marine Science Lab A teaching lab for Peninsula College, the Axthust Fiero Ma~ine Scicn~ Lab, located on the Port Angeles City Pier, features live exhibits of local marine life. Children especially love the large touch tanks featuring sea cu- cumbers and other creatures. The lab is open June-September and weekends during the school year. Olympic Coast Discovery Center A terrific visitor center located at the Landing Mall in Port An- geles. This center explains the Olympic Coast National Marine Sanctuary with interactive displays and video taken from under- water submersible adventures. Open, free of charge, Thursday to Monday, 10a.m to 5 p.m. River Rafting River rafting is a great family outing and the Elwha River of- fers Class II rafi:ing just 8 miles west of town. Olympic Ra~t & Ray'ak guides you on the Elwha where you will experience minor rapids, massive trees draped in moss, sightings of elk, otters, many varieties of birds and, of course, the bald eagle. Hurricane Ridge Hurricane Ridge is the most visited spot in Olympic Na- tional Park. Located just 18 miles South of Port Angeles, and 5,200 feet up, the Ridge is a magical spot. Here you will be able to view huge glaciers to the south, and by taking a short hike, the view opens up to the Strait of Juan de Fuca and Vancouver Island. A visitor center allows you to learn more about the area or pick up a souvenir or something to eat. Heritage Tours Heritage Tours are offered in downtown Port Angeles Mon- day-SatuMay during the sum- mer and on weekends during the winter months. Experience the "behind the scenes" of how the community has evolved and hear some of the colorful stories that have been saved. Sections of the famed underground are also included. Also visit the remodeled Carnegie Library Building, which houses a historical museum display. Lavender Farms Lavender Farms in the Sequim area have developed into a unique industry all their own. During the summer month's {guests are encouraged to visit the many farms and walk through the fields. The visual beauty and strong fragrance of the lavender attracts thou- sands each year. Several shops throughout the area offer lav- ender products that you cannot find anywhere else, indtlding lavender ice cream. 16 www.portangeles.org 7 Cedars Casino When it comes to entertainment, the Jamestown S'Klallam Tribe provides the 7 Cedars Casino. Offering Las Vegas Style gaming in thc comfortable setting oftbe Olympic Peninsula. Slots, table games, bingo, keno, plus video poker; along with weekly enter- tainment and special events offer plenty of excitement. Makah Cultural Center Makah Cultural Center, located in the tribal community of Neah Bay, is truly a world class museum. Here you will find replicas of a 60 foot cedar longhouse, oceangoing canoes and artifacts from the famous Ozette Dig. For more information: Arthur Fiero Marine Science Lab, (360) 41%6254 Hurricane Ridge, (360) 565-3132 www. nps.gov/oIym Heritage Tours Reservations, (360) 452-2363 Lavender Growers Assn., (360) 681-2782, www. lavendergrowers.org Makah Cultural Center, (360) 645-2711, www. makah.com/mcrchome.ht m Port Angeles Fine Arts Center, (360) 457-3539, www. por tangelesar reenter.co m Olympic Coast Discovery' Center, (360) 457-6622, vo/oa,, oc n ms. no s. noaa.gov Olympic Game Farm, (360) 683-4295, www. olygamef~rm.com Olympic Raft & I(ayak, (360) 452-1443, www.raftandkayak.com W~meries, www. nor thso undwineries.com Black Diamond, (360) 457-0748, home.wavecable.com/- bdwinery/ Camaraderie Cell~s, (360) 417-3564, www. camaraderiecellars.com Lost Mountain, (360) 683-5229, www. lostmountain.com Olympic Cellars, (360) 452-0160, www. olympiccellars.co m 7 Cedars Casino, (360) 683-7777, www.7cedarscasino.com Port Angeles is only 18 miles across the Strait of Juan de Fuca from the city of Victoria the capital of British Columbia. Port Angeles has two ferries that service the city of Victoria. The MV Coho is a vehicle and passenger ferry with depar- tures daily. The Victoria Express provides passenger-only fast service with departures daily from May to October. A decidedly British feeling is ever present in this charming city to the north. While you're there, explore the beauty of world famous Butchart Gardens or stroll around the picturesque In- ner Harbour. Spend your afternoon touring on a double decker bus and sipping tea at the majestic Empress Hotel. For the more adventurous, hop aboard a wave skimmer and go whale watching. The world-famous Royal British Columbia Museum offers walk- through towns, history and the I-Max Theater. Remember that Victoria is in Canada, so you will be crossing an international border and identification for Customs and Immi- gration is required. Travelers are encouraged to carry a passport if available. U.S. and Canadian citizens may carry a valid drivers license and an original or certified copy of a birth certificate. If you are not a citizen of the U.S. or Canada, you are required to carry a valid passport and/or the appropriate visa. For more information: MV Coho, (360) 457-4491, www. cohofcrry, com Necessities & Tcmpations, (360) 457-6400 Olympic Peninsula Tours, (360) 683-7221 Port Angeles-Victoria Tourist Bureau, (360) 452-7084, www. royalecircle.com Peninsula Tours &Chartees, (888) 673-6626, www. pcnncoshutde.com Victor!a Ex. press, 1-800-633-1589, (360) 452-8088, www. vlcto rlaexpress.com www. portangeles.org 17 The North Olympic Pen- insula is very large and diverse. Within hours you can be walking a remote beach, kayaking a river, hiking to a glacier, or discovering the secrets of a rain fo~est. However, if you are considering retiring to tile area. relocat- ing your business or simply searching for a more relaxed pace in a beautiful rural area, you will want more than abundant recreation. The Olympic Peninsula has been able to take advantage of the increased technology that is now available to rural destinations. High speed internet access, fiber optic service, digital wireless phones with excellent coverage and digital cable TV have all helped make the Port Angeles area a wired community. This technology has allowed many people to telecommute or start that business they always dreamed o~, then when a face to face outside of the area is needed, the local airport has you to Sea-Tac Interna- tional in 30 minutes with airline connections to the world. When considering relocation, a quality school system is mandato- ry, and for a region of 55,000, the education options are fantastic. The public schools in the area consistently rank very high, in addition there are p£1vate school options, and upon graduation students do not have to leave the area. Peninsula Community College offers 2 year degrees or adult learning. There is also a partnership between the communities that recently developed the Skills Center, focusing more on vocational training. Medical facilities are high on the list when it comes to reloca- tion. Port Angeles is fortunate to have excellent health care centers. Olympic Medical Center has received numerous national awards for their patient care and quality care ratings. The Center also brings new professionals to the area to keep pace with the growing population. Several new treatment cen- ters have opened recently and more growth is expected. The Port Angeles and Olympic Peninsula should make the house hunt a very enjoyable experience for you. From horse ranches to hilltop gems with magnificent views of the water to fixer uppers in an older section of town, or a condo or apart- ment, you have a wide range to select from. 18 Population Profile · Approx. 18,397 of the County's 64,525 live in the City (2000 Census). · Median age is 39.9 (2000 Census). · The quoted median family income is $32,268 (2000) but it does not include investment income. · The unemployment rate is 9.2%, county (January 2002). Housing · Average single-family home - Ncw--$139,900 Average single-family home - Resale--$117,006 Average single-family home - Rental--$675/month Taxes · Sales Tax---8.2% · Property Tax--$ l 2.77/$1000 assessed valuation-City (2001) $11.30/$1000 assessed valuarion- unincorp (2001) Educational Facilities · Peninsula College-l,349 FTE students (2001) · Port Angeles School District (Enrollment 01-02 School Yeas) 1 - High School (1,425) 2 - Middle Schools (1,107) 6 - Elementary Schools (1,936) · 2 - Private Schools Skill Center - grades 9-12 (109) Home School (44) Choice School - Senior & Junior High (130) Financial Institutions Nine banking institutions, seven Washington State banks Total Port Angeles branch deposits--S431,081,000 Ten investment companies Thirty-two insurance companies Health Services · Doctors--92 Dentists--24 · Clinics--6 Extended Care---4 Pharmacies--6 Olympic Medical Center--126 beds- full service hospital Media Peninsula Daily News - Daily serving Olympic Peninsula · KONP Radio Station -AM - Serving Clallam County · Peninsula News Network - Local cable news For more relocation information: Port Angel~ Chamber of Commerce, (360) 452-2363, www. portangeles.org ClaHam County Economic Development Council, (360) 457-7793, www. clallam.org www.portangeles.org Since it was officially established as the location of the Custom House in 1861, Port Angeles has had a long and colorful history. But its history started long before that when the Lower Etwha S'Klallam Tribe used what is now called Hollywood Beach as a fishing village. This site is now frontage for the waterfront trail and City Pier. Don Francisco de F3iza discovered the deep-water harbor in 1791, All trade in and out of Port Angeles came through the harbor and today the Port of Port Angeles still maintains a vigorous harbor for Port Angels was established as a townsite by Abraham Lincoln in 1862 by executive order. The Board of Trade in 1890 called Port Angeles the "Second National City", Washington D.C. being the first. Most oftbe land was hdd as a military reserve until pioneers "jumped the Reserve" in 1890 and Congress agreed to sale of lots in 1894. The forest and fishing industries played major roles in the boom and bust economy of Port Angeles. Trees of mammoth propor- tions were shipped through the Port as forests around Port An- geles supplied the building materials for Seattle, San Francisco and beyond. Salmon was king of the 5trait and plentiful for all to fish. Both industries have slowed as concerns over habitat for bird and salmon are analyzed and protective zones and regula- tions have been developed. In I908, President Theodore Roosevelt established the Mt. Olym- pus National Monument. Olympic National Park was established in 1938 by President Franklin D. Roosevelt. Generations ofrourists and travelers have come to the Olympics for rest and rejuvenation. Vksitors to Port Angeles can learn more by visidng the Clallam County Museum in the Federal Building at First and Oak Street, The Restored Carnegie Library Heritage Museum on Lincoln, or by taking a guided Heritage Walking Tour which runs Mon-Sat during the summer and weekends during the winter months. For more information: Clallam County Museum, (360) 452-2662, www. olympus.net/ar ts/ccmuscum Heritage Tour Re~ervatlons, (360) 452-2363 The restaurants of the North Olympic Peninsula have the unique attributes of the region to assist them in helping create memories, and admit it; one of the most important parts of a vacation is the food. First there is the local seafood, and when you are ncady sur- rounded by water the sdection throughout the year is varied and abundant. Of course the region is known for the Dungeness Crab, and a visit to the peninsula is not complete without ordering one of these beauties. Shellfish is abundant with oysters, mus- sds, dams and other varieties ofctab also on the menus. Depending on the time of year, salmon, halibut, cod, and tuna provide chefs with wonderfully fresh product. Also popular in the region is smoked salmon, which is perfect for shipping to someone with a "wish your were here" note attached However, the freshness does not stop with the seafood. The Olympic Peninsula is blessed with a very temperate dimate and actually, our local farmers can grow vegetables year round. Some of the best can'om, lettuce, brussd sprouts, beans and squash are grown right in our area. In talking with thc farmers, they explain that there are actually microdimates within a few miles of each other that allow for exceptional quality pro- duce. You might be interested to know that the Olympic Penimula is also known ax one of the best seed produdng regions in the country; because of the hck ofpullutants in the air and also, the quality soil and very comistent temperatures. Rounding out the local selections are the wineries. We have four in the area, each producing wine that is uniquely their own. Many of the loeWI restaurants and retail shops in the region carry the local wines and of course, you are encouraged to stop in and do your own tasting in the tasting rooms. 50, as you can see, there are many chances to create vacation memories in our local restaurants. www.porlangeles.org 19 RESTAURANT GUIDE CUISINE Bella Italia I 18 East First Street, Port Angeles, WA 98362 · 360-457-5442 · www. bellaimllapa.com · bella~olypen.com Italian / NW Specials L.~ Cre~o~nt Lod~ 416 l~k¢ Cr~c~nt Ro~d, por~ An~les, WA 9836~ * 36C~928.321 ! ?~rescentl~d~;c~m Am~/~ Landing's Restaurmat & Docksicle Lou,~ I 15 Eas~ Railroad Avenue, Pot t Angeles, WA 98362 · 360-457-6768 Caterins/Evcnts Colt~..~or~oat, S~ar,~d 20 www.portangeles.org A Hidden Haven Bed and Breakfast 1~28 Dan Kelly Road, Port Angeles, WA 98363 360.452-2719 · 1-877-418-0938 · ww~ahiddenhaven.com · stay~ahiddenhaven.com $$$$ Angeles Inn Bed and grenltfast 1208 E. 7th Stree~ Port Al~.lesI ~ 98362 360.417~260 · 1~88-5524263 · www. angelesi nn.eom, iame~olypen;com $85 BJ's Garden Gase Bed and Breakfast 397 Monterra Drive, Port Angeles, WA 98362 360.452-2322 · 1-800-880-1332 · www. bjgarden.com · bjgarden@olypen.eom Blue Mountain Lodge (private unit) 380 Lewis Road, potl Angeles, ~ 98362 360457-8540 855 Colette's Bed and Breakfast 339 Finn Hall Road, Port Angeles, WA 98362 360.457-9197 * 1-877.457-9777 * www. colettes.eom · colettes@olypen.com Demllston by the Sea B h B 430 Gr~tott St. Victo~ g C; V9A ~ * 250-385q962 1-888-796-2699 * wv~g dennistonby~hesea.com · info~denntstonb~hese~.com Diamond Fork B & B 112 Reservoir Road, Port Angeles, WA 98363 * 360-452-4933 1-877-221-0837 * ww~zdiamondforkbandb.com · ~a_rnondforkbandb@aol.¢om $$$$ Domaine Madelelne Bed and Breakfimt 146 ~t~dt]oWer Lane, Port Angeles; WA 98362 360457-4174 * 1-888-811-8376 ~ va~donminellladel~cm * sts~do~nesmdlgei~.eorn Eagles Flight R & B 1053 S. Bagley Creek Rd., Port Angeles, WA 9836Z 360- 775-682 · 1-888-692-9159 * var~eaglesflightbbb.com * mbuck@yahoo.eom lilwha Ranclt B & B ~O5 Ilerdck Road, Port Angeles, ~ 983~3 360-4574540 * vvrvz elwharanch;com Five 8eaSuns Bed and Breakfast 1006 S. Lincoln, Port Angeles, WA 98362 360-452-8248 · 1-800-708-0777 · ww~seasuns.com · seasuns@olypen.eom Groveland Cottage 4861Sequim-Dungene~s Way, SeqUim 98382 360~83-3565 · 800-879,8859 · ~wsequlmvalle~¢~m · $1mone@olyPen~com Lost Mountain Lodge 303 Sunny View Dr, Sequim, WA 98382 360-683-2431 * x'e*r, glostrnounMniodge.com · getaway@lostmountalnlodge.¢om Michael's Inn 360457-3027 · earrie~0~ypen.com Ocean Crest Bed and Breakfast 402 S. "M" Street, Port Angeles, WA 98363 360.452-4832 · 1-877-413-2169 · 9~wnorthoIympic.com/oceancrest * jevans~nforw~d.eom $$ Port Angeles B & B 3604 Gala.W Place, Port Angeles, WA 98362 360.457-9306 * wwwportangelesbb.com · pnz~m~elesbb~aoLcom Sail-Inn Bed & 8realffast 1109 S Lincoln Street, Port Angeles, WA 98362 360.452-2532 * www. sailinn-pa.eom · rdpomr@olypen.com $$$ Sol Duc River LodgeBed and Breakfast 206!14 Hv~ IO~ Port Angel@,~ 98363 360-327-3709 * l*8~af-86fi-OI28 * v~sv~z s~ldue rive~o~,e~com ~, The Foxglove Bed and Breakfast 131 East IZth Street, Port A[tgeles, ~ 98362 360417-1277 * ww~ foxglovebandb.eom · info @ foxgloveMndb.e om The Meadows Inn 3 IS2 Blue Mnunt~tin Road, Port Angeles 98362; 360.417~074 * 866-417-8074 · ~.themead0v~inn.com · infO@themeaclowsinn.¢om ~rl~e ~dor lan 1108 S. O~k Street, Port Angeles, WA 98362 360.452-3138 · 1-866-286-2224. ~tudorinn.com · info@tudorinn.com $$$$ www. portangeles.org 21 Aircrest Motel 1006 E. Front Street, Port Angeles, WA 98362 $ 360.452-9255 · 1.888-832-6303 · aircrest~tenforward.com · wwwaircrest.com All ¥ievt Motel 214 E. lauridsen Boalevard. P~rt A~eles, WA 98362 360-457-7779 · 1~88;457-7779 · allview~01ypen.c0m · w~v. allviewmotel.eom Best Western Cambridge Inn 10210 E~rgrcen Way, Everett WA 98204 $$$ 425-347-2555 · 877-488-0510 · ~bwcambridgeinn.com ° info@bweambrtdgeinn.com Best Western Olympic Lodge 140DelGu~Dz portAngeles WA9836Z 360452-2993 · 1-800-600-2993 * be~gv~gem~01ype~com * ~rw, porlnngelesl~.eom Flagstone Motel 415 E, First Street, Port Angeles, WA 98362-3111 $ 360-457-9494 · 1-888-304-3465 ,, ',vwvLflagstonemotel.¢om · fiagstone@olypen.eom Hampton Inn & Suites 19324 Alderwood Moll ~ LynnWOOd 98036 425-771-18~8 · 877-771-8555 · WVWhamplonSeatRenordg eom · info~bamp~.cora $$$ Indian Valley Motel/Granny's Cafe 235471 Hwy IO1 W, Port Angeles, WA 98363 $ 360-928-3266 * grannys@tenforward.com ,, www. gmnnyscafe,com Lake Crescent Lodge 416 Lake Crescem Road port Angeles; ~,~ 98363 360-928-3041 ° wvvs. lakecreseentlodge.eom * Icl0flge@o~en,c'mu Log Cabin Resort 3183 E. Beach Road, Port Angeles, WA 98363 $$ 360-928-3325 · wwv~logcabinresort,net · Iogcabin@tenfor,rard.com Port Angeles Inn 111E. 2nd Street, Port A~gelesL~ 98362 360452-4015 * 1-800438-8588 · w~port~gelesinn,com · wmM~Opo~eom Portside Inn 1510 E. Front Street, Port Angeles, WA 98362 $$ 360452-4015 ° 1-877-438-8588 ° wve~port~ideinn,com · pomide@tenfonvard.¢om Qualit~ Inn 101 £, 2nd $~et, port Angel~i WA 9836~, ~O-4S~ 1-800-858-3812 ° gm,V~¢hoieehotel.eom * vae. z qu~nn;~O~0lel/~ Ramada Seattle Universit~ District North 2140 N Northgate Way, Seattle 98133 $$$ 206-365-0700 ° 800-435-0754 * w.~.ramadainnseaRle.eom * info@ramadainnseattle.com Red Ltoa Hotel Port Angele~ 221 N. lincoln, P0rt Ang~le$iWA 98362 360452-9215 * 1-800.RED;LION. ~.,vwredlionl~rtaageles,eolR ~ ~onportangeleS.com Riviera lnn Po. rt Angeles 535 .E. Front Street, Port An. geles, WA 98362 360~17-3955 1-877-766-8350 v,~-,zriviera-inn.com rivier~nn@usintouch.com Royal Victorian M0tel 521 Il. First Street, PortAl, des, ~ 9836Z 360-452-8400 · 1.877-95Z~, ~~net,, Rumes Motel 812 E, First Street, Port Angeles, WA 98362 360-457-7788 Sol I}ue Hot Springs Resort I~O. Box 2169, Port Angeles, ~ 98362 360-327-3583 o ww~ no r tholympi¢,com/$olduc · pamsdrOaol,com Sportsmen Motel 2909 Hvq 101 E,, Port Angeles, WA 98362 360-457-6196 ° wve, gsporgmenmoteLcom Super 8 Motel 2104 E, Hnt Street, port Angeles, WA 98362 360452-8401 ° 1.80~.800.8000 · wv'~'~:PerS?°m ~;389~l~te[~cen~tcom The Downtown Hotel 101 ~A E. Front St., Port Angeles, WA 98362 * 360-565-1125 $ 1-866-688-8600 · wwzpo rtangelesdownto~otel,com ° contact~ pomngelesdowntownhmel.com The Pond Motel 1425 W. Hwy 101, Port Angeles, ~g~ 98363 360-452-8422 · info@pondmotel,eom ,, ww~pondmotel.eom Thor To~n International Hostel 316 N. Race St., Port Angeles, WA 98362 360-452-0931 ° wve~thortown,conl · tho~own@olypen.c om Traveler's Motel 1133 F~ first Street, Port Angel~; WA 98362 $ 360~i52-2303 * wwtrz~lersmotel,net * info @travelersmote[ net 22 www.portangeles.org Al's RV Park 521 N. Lee's Creek Road, Por~ Angeles, WA 98362 360-457-9844 Crescent Beach & RV Park 2860 Crescent Beach Road, Port Angeles, WA 98363 60 360-928-3344 · xvw~olypen.coav'crescent · crescent@olypen.com 360452-7054 · l~877~.~Elwha-I,, wwv~d~com * ~com 40 KOA Kamp~round Port ,LogelegSequim 80 OiBriea Ro~d, Port An~te$~ ~Zq ~ 3~457-5916 · 1.800-1~.7558 * w~wkoa.c0m/where/vea/47128.b~1 * porl~e~(ojtO~.~ 112 360-928-3489 MI scsi°ns inn 360452-5247 · 1-866-880-1464 · www. pa~r;org · info~pavr,0rg Brigadoon Vacalion Rentals 62 B~lmoral Ct, Sequtm, WA 98382 $$$$ 360-683-2255 · 1-800-397-2256 · vmwsequimrentals,com · macil)'n@wavecable.com Discovery Lodging I Lake Su~erland House port Angeles; ~A $$$$ 3~O-271-0296; 877-337-9090 * ve~w. dJsco',~0 dging.com * kaybOnwinet.com Great Unks Resorts 1963 Woodcock Rd., $equim, WA 98382 $$$$ 360-683-7337 w',v~greadinksresorls, com judy@gl~oa.com Groveland ~V~a~a. fion Rentals .4861 Sequlm-Dungene~Way, Sequim, V&9838Z 360-683-3565 800-879-8859 wv,~csequimralley~om · Harrison Beach 299 Harrison Beach Rd, Porl Angeles, WA 98363 $$ 360-928-3006 .}uan De IM~ Cott~es 182 Marine Dr, Sequim, 98382, 360~83~1433 866~83-4433 * vgw~juandefuca,co ,, juande~ca@olypea,com Kinder Farm Vacation Rentals 1074 Hooker Rd, Sequim, WA 98382 360-683-7397 · wwwkinder~arm.com · info@kinder~arm.com Loke Crescent C..abtn 1~i43 East Beach Rd, Port Angeles, WA 98363 vmw lakecreseenteabin.com La Place Sur La Mcr 2026 Place Rd, Port Angeles 98363 360-565-8029 · v,'a~laplacesur-]a-meccom · lyndee@laplace~ur-la-mer Olympic'View.Place 512 E. Ahlvers, Port A~i. ,g. de$, WA 98362 3~-457-8919 ',w,~olympicviewplace.com info@olympicviewplacexom PA Cottnge Bxperience 131 East 12th St, Port Angeles, W^ 98362 $$$$ 360-565-8012 · 9mwpacr. biz · foxglove@por~angeles-wa biz Whiskey Creek Beach 1385 Whiskey Creek Beach,.loyce, WA 98343 $$ 360-928-3218 www.podangeles.org 23 PORT ANGELES CHAMBER OF COMMERCE 121 East Railroad Port Angeles, WA 98362 (360) 452-2363 For 2005 the Chamber Board has an aggressive agenda planned. The following reviews the goals as decided upon at the December retreat. Highlight the Chamber as more than a one dimensional organization that only focuses on tourism and marketing. Continue our involvement with the local health care industry to update and educate the business and residential community about health related issues that face us. Continue to showcase the importance of our educational system and also work with the Port Angeles School District to encourage a yes vote for the school levies being proposed. Take an active role with the airlines that service Port Angeles, to assist with awareness and to learn more about the business and residential airline travel needs. *Work with Police Chief Tom Riepe to establish a higher police presence in the downtown area Higher concentrated effort on the non-tourism segment of the membership to involve them Create opportunities for members to be active in the chamber (such as) -committees -web site chat room Continue to update the residents in the area about the importance of tourism to the economy *-Start a tourism in your own backyard focus Set up a forum for the Chamber Board and the PADA Board to discuss opportunities for the Chamber to be more involved in downtown and to assist with promotion, economic development, and communication with merchants, building owners, and professionals. Review the Downtown zoning and work on recruitment of new business to the area. FAX#360-457-5380 · www. portangeles.org · E-mail:pangeles@olypen.com REPRESENTING THE LARGEST GROUP OF BUSINESSES ON THE PENINSULA Set up a forum for the Chamber Board and the Sequim Chamber Board to meet and discuss common issues and promote more dialogue with each other. Continue to use the Monday Chamber lunch as a forum of issues facing the community to educate both members and the residents. (a program chairperson is needed) Stay involved and when possible take an active role in the development issues involving: *-Covered Arena -New pool -Landing mall and pier -Rayonier -New businesses in the downtown -Graving Dock -Utilities in the UGA Take a more active role in the EDC *Consider a name change of the chamber to be more inclusive of the region. Our involvement goes far beyond the city borders Grow the Business After Hours monthly program *Continue to detail the Sports/Event Commission and expand to include private sponsors Continue our role as the contracted organization .for the city to handle the marketing, advertising, event grants and visitor center operations as outline in our agreement. *This means a committee is being formed or already exists for this segment. ShouM you have an interest to be involved please contact Russ Veenema via e-mail at russ~portan~eles.org or call 452 2363 X 13. WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: To: FROM: SUBJECT: FEBRUARY 1, 2004 CITY COUNCIL MICHAEL QUINN, CITY MANAGEI~_~ CLALLAM COUNTY EDC CONTRACT ~ In accordance with the 2005 Budget, staff has prepared the attached contract with Clallam County Economic Development Council (EDC) for the provision of services during 2005. The contract essentially mirrors the existing agreement and provides a service contract for economic development services. Recommendation: Authorize the Mayor to sign the attached contract with the Clallam County Economic Development Council for 2005. Background / An alvsis.' The contract is consistent with prior agreements between the City and the EDC. Except for some minor word changes to better clarify the contract and not materially change the contract, there is only one substantive change. At the City Attorney's suggestion, we added section 8 to the contract concerning "Independent Contractor" status for EDC and clarifying that their agency is not an employee of the City. Otherwise, the contract amount is the same at $35,000 plus an allowance for $2,500 in telephone service. We value the service received in this contract, and a recent example of the benefit is the successful placement of PA Hardwoods. 21 G:~vlASTFORM\COUNC1L,WPT AGREEMENT THIS AGREEMENT is entered into this __ day of ., 2005, by and between the City of Port Angeles, Washington, a municipal corporation, hereinafter called "City", and the Clallam County Economic Development Council, Inc., a non-profit corporation, hereinafter called "Contractor". WHEREAS, the City is a municipal corporation of the State of Washington authorized to contract for economic development services; and, WHEREAS, it is in the public interest for economic development activities to be performed that will enhance the economy and employment opportunities in the City of Port Angeles; and, WHEREAS, the City has need of research and assistance in regards to these and other aspects of its operations; NOW, THEREFORE, in consideration of the above representations and the mutual covenants and agreements herein, it is agreed by the parties as follows: PERFORMANCE BY THE CONTRACTOR. A. General Goals. The Contractor shall promote and enhance economic development and employment opportunities in the City in accordance with the mission and goals set forth in the attached Exhibit "A". The Contractor shall use its resources to jointly market the facilities and capabilities of the City to new and existing businesses with the goals of increasing City revenues and general employment oppommities for City residents. Business Retention, Expansion and Recruitment. (1) The Contractor shall work cooperatively with the City and shall serve as an economic development research and reference service for the City. In this capacity the Contractor shall conduct ongoing basic market research; identify target markets; provide business retention, expansion and recruitment services aimed at existing businesses and target markets; and participate with the City in the process of responding to inquiries, site selection consultation, and case management, regarding existing or new industries or other commercial ventures which seek information concerning the facilities and resources managed by the City or which may involve properties and/or infrastructure within the City and the Port Angeles Urban Growth Area (UGA). (2) The Contractor shall, upon request, provide effective industrial marketing guidance to City staff and provide services in the development and execution of programs aimed at better planning, utilization, promotion, and advertisement of community services, facilities, infrastructure, and property. (3) The Contractor shall maintain and enhance working relations with existing businesses to assist them with start-up and expansion needs, technical assistance, access to business counseling and financing resources including aid and assistance to at-risk businesses. (4) The Contractor shall assist the City in preparing replies to inquires received by the City or the Contractor regarding City facilities and resources or which may involve properties and/or infrastructure within the Port Angeles Urban Growth Area (UGA) relative to economic development retention and growth opportunities. (5) The Contractor shall assist the City in applying for and administering economic development related grants, including any potential to support the development of infrastructure. (6) The Contractor shall maintain a community profile specific to the greater Port Angeles area, which highlights demographic and development data customarily of interest to industrial/commercial developers. (7) The Contractor shall work with the City in the maintenance and periodic update of the commercial and industrial property and infrastructure databases for the Port Angeles vicinity. (8) The Contractor shall work with the City to research, identify, and implement the addition of new development incentive programs or packages as may be applicable to Port Angeles economic development efforts. C. Prospe~Management. The Contractor will be primarily responsible for providing services in connection with industrial and business retention, expansion and/or relocation. The Contractor will represent the attributes for appropriate site locations within the City that meet the prospects criteria. In such dealings, the Contractor shall participate in the handling of prospects, in accordance with the following guidelines: (0 Contacts made directly to the Contractor or referred to Contractor by DCTED. (a) The Contractor will provide general information and other data requested by the prospect. Within 24 hours of being contacted regardinga prospect, the Contractor shall notify the City Manager, or his designee, by phone and/or e-mail, regarding details of the contact. (b) If the prospect indicates an interest in specific business locations, the Contractor shall notify other affected parties and property owners as appropriate, make appropriate introductions, and assist in follow-up marketing. (c) If the prospect requests confidentiality, the Contractor will keep the City Manager, or his designee, fully informed without revealing the identity of the prospect. (2) Contacts made directly to the City. (a) When the City receives a direct contact or is managing a development prospect and desires support from the Contractor, it may request such assistance, and Contractor will render such assistance. The Contractor to supply recruitment information and services as described in lA and lB. (3) Public Events, and Media Public events such as media conferences, ground breaking ceremonies, and ribbon cuttings will be coordinated with the City Manager or his designee, the siting jurisdiction, and other affected partners. The Contractor shall provide to the City and to such persons as the City may direct, free of additional charge, materials prepared by the Contractor. E. The Contractor shall maintain records and report to the City as follows: (1) The Contractor shall maintain accounts and records that accurately reflect the revenues and costs for the Contractor's activities under this Contract. These financial records, and all records related to the performance of this Contract, shall be available for City inspection. (2) The Contractor shall provide the City with monthly reports fully describing what work has been performed pursuant to this Contract, and including a current statement of revenues and costs. (3) The Contractor shall use its best efforts to economize on overhead expenses to the maximum extent feasible in providing the services to be performed pursuant to this Contract. (4) The Contractor shall provide the City with an annual budget, including current salaries and benefits for all employees and classifications of employees and shall notify the City within 30 days of any increases in salaries or benefits from the previous year. PERFORMANCE BY THE CITY. For the "Core" services rendered by the Contractor, the City will provide, by payment in cash, the amount of $35,000 and, in-kind telephone service, in an amount not to exceed $2,500. Payment by the City shall be due upon receipt and acceptance by the City Manager of the Contractor's quarterly report. The Contractor will invoice the City for all quarterly payments. TERM. This agreement shall be for a term of one year, commencing on January 1, 2005. ASSIGNMENT. This agreement may not be assigned by either party to this agreement except by signed amendment. BREACH. In the event of either party's material breach of the terms or conditions of this Contract, the non-breaching party reserves the right to withhold payments or services until corrective action has been taken or completed. However, the party shall not exercise this right until they have given written notice of such material breach to the breaching party and ten days have passed since the receipt of such notice. This option is in addition to and not in lieu of the parties' right to terminate this Contract or any other right which State law offers for breach of contract. If either party shall materially breach any of the covenants undertaken herein or any of the duties imposed upon it by this Contract, such material breach shall entitle the other party to temainate this Contract, provided that the party desiring to terminate for such cause shall give the offending party at least twenty days' written notice, specifying the particulars wherein it is claimed that there has been a violation hereof, and if at the end of such time, the party notified has not removed the cause of complaint, or remedied the purported violation, then the termination of this Contract shall be deemed complete. NON-DISCRIMiNATION. The Contractor shall conduct its business in a manner which assures fair, equal and non-discriminatory treatment of all persons, without respect to race, creed or national origin, and, in particular: The Contractor shall maintain open hiring and employment practices and will welcome applications for employment in all positions, from qualified individuals who are members of minorities protected by federal equal opportunity/affirmative action requirements; and, The Contractor shall comply with all requirements of applicable federal, state or local laws or regulations issued pursuant thereto, relating to the establishment of non- discriminatory requirements in hiring and employment practices and assuring the service of all persons without discrimination as to any person's race, color, religion, sex, Vietnam era veteran's status, disabled veteran condition, physical or mental handicap, or national origin. DISPUTE RESOLUTION. Any disputes related to this Agreement that are not resolved by agreement of the City Manager and the Contractor' s Executive Director shall be referred for determination by the City Council and the Contractor's Board of Directors. Any still unresolved disputes shall be referred to non- binding mediation by a mutually acceptable mediator. Venue of any lawsuit related to this Agreement shall be in Clallam County, Washington. iNDEPENDENT CONTRACTOR STATUS. The relation created by this Contract is that of independent contracting entities. The Contractor is not an employee of the City and is not entitled to the benefits provided by the City to its employees. The Contractor, as an independent contractor, has the authority to control and direct the performance of the details of the services to be provided. The Contractor shall assume full responsibility for payment of all Federal, State, and local taxes or contributions imposed or required, including, but not limited to, unemployment insurance, Social Security, and income tax. HOLD HARMLESS AND INSURANCE. The Contractor shall protect, defend, save harmless, and indemnify the City, its officers, 10. agents, and employees from and against any and all claims, damages, losses, and expenses, including reasonable attorney's fees, occurring, arising, or resulting from supplying work, services, materials, or supplies in connection with the performance of this Contract. The Contractor shall provide a Certificate of Insurance evidencing occurrence-based Commercial General Liability insurance with limits of no less than $1,000,000 combined single limit per occurrence, with the City shown as a named additional insured. ENTIRE CONTRACT. The parties agree that this Contract is the complete expression of the terms hereto and any oral representation or understanding not incorporated herein is excluded. Further, any modification of this Contract shall be in writing and signed by both parties. 1N WITNESS WHEREOF, the parties hereto caused this Contract to be executed the day and year first herein above written. CITY OF PORT ANGELES CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL By: Mayor Richard Headrick President ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: Vice President William E. Bloor, City Attorney G:\Legal Backup\AGREEMENTS&CONTP. ACTS\EDC 2005.con.wpd CLALLAM COUNTY ECONOMIC DEVELOPMENT COUNCIL Strategic Plan 2003-2007 Vision Statement A connected and interdependent community in business, government, education and healthcare to improve economic opportunities and enrich the life of each and every citizen. Mission Statement The mission of the Clallam County Economic Development Council is to catalyze economic growth; to lead the collaborative process and diversification of the economy while applying sound stewardship of the community. This document is a working document, which may be added to and/or altered by the Board of Directors to address issues and opportunities that may adss during the 2003-2007 period. Adopted by Clallam County EOC Board of Directors on September 18~ 2003 29 CLALLAM COUNTY CONNECTED COMMUNITY PRINCIPLES Y Education Ensure that the region maintains a qualified workforce by developing a community that embraces change and has access to high quality life-long education. ~Jobs Invest community resources in the creation of a diverse set of new job opportunities in sustainable industry sectors; raise the average wage in Clallam County. ~. Access Make sure one's zip code does not limit one's access to government services, business, healthcare or education opportunities, thus saving time and money and improving service availability and quality. )~ Entrepreneurship Become a community of creative solutions where government, education and business recognize, appreciate and adopt an entrepreneurial spirit. > Community Development Facilitate community projects and practices to promote collaborative behavior, connectivity and changed spending, investing and budgeting, Implement a tangible program to communicate the collaborative actions and resource sharing occurring in the comm~nity; encouraging citizens to adopt connected ways of thinking and demonstrating the "Connected Economy" as enhancing c ur shared vision to maintain a desirable community in which to worl~ and live. 3O STRATEGIC PLAN ELEMENTS Strate,qic Plan Key Indicators Cia[lam County Average Covered Wage Labor force: Total, Percentage of Population Clallam County Employment Businesses By Sector New Businesses By Sector Medicare/Medicaid Reimbursements at Olympic Medical Center K-12 Enrollments Peninsula College Enrollments Clallam County Retail Sales 31 Ob,iectives, Strategies and Actions Strategies and Actions Sustain and support private business participation within the industry cluster teams ~ Promote and increase value in the cluster team collaborative process } Recruit broader participation of industry cluster segments Educate community on the use and benefit of an industry cluster strategic approach } Promote and coordinate monthly "Industry Connection Events" 3. Coordinate industry cluster oppommities events for public agencies and the 3. Continue to support a bimonthly "Business Colunm" ~ Distribute industry cluster documents ~ Celebrate the w'ms and successes of the cluster strategy Develop objective measures on the impact and development of current and potential clusters } Create a visual measurement tool ~ Use key indicators to monitor the economic impact Connect local resources to the industries via Clallam networks >' Coordinate mapping of industry clusters ~ Provide access to industry maps ~' Facilitate connection of resources between clusters Provide and develop leadership and support to industry cluster teams } Board member co-chairs lead industry cluster teams } Increase leadership skills of cluster teams ~' Identify funding for industry cluster teams $2 Promote the retention and expansion OIRE) of our local businesses within the industry clusters ), Integrate BRE principles into industa7 cluster stratesY ). Connect CCBI services to the industry cluster teams ~. Advocate for industxy competitiveness by addressing legislative issues Improve the competitiveness and promote innovation within the industry clusters ~ Identify and recruit finns to fill gaps in industry cluster supply chain ~ Address the legislative issues impeding local business _~ Facilitate industry research } Connect innovation research and resources to industry clusters ?_ Provide market research training to industa~j' duster teams 33 Strategies and Actions Support the Clallam County Business Incubator (CCBI) ~. Connect current business support resources to the organization ~' Market the facility and services ~, Pursue capital and operational funding ~ Provide support during initial development ~' Direct prospects into the "Guided Access Process" Partner with resources to grow and retain existing businesses ~ Continue funding support for SBDC 1~ Strengthen relationships with state and national business support services Educate the community on available business resources through the EDC >. Continue to support a bimonthly "Business Column" } Coordinate workshops and seminars ~' Seek out public relations and advertising opportunities Identify business resources to meet the needs of local businesses ~, Participate in state wide association ?_ Attend applicable conferences ~ Create a resource library Engage youth in local economic development ~ Partner with High School related classes and organizations >. Encourage entrepreneurial spirit in youth } Create intern opportunities To foster the dynamic relationship between business, workforce, education > Coordinate cross cluster activities and connections >' Identify collaborative opportunities 34¸ Strategies and Actions Be an advocate for solutions for the removal of barriers that inhibit community growth Identify community-financing alternatives ~ Explore the feasibility of an integrated Capital Finance structure } Use the finance cluster team to facilitate innovative finance opportunities > Promote current alternative finance resources Moderate between various organizations to foster common thread that mirrors the EDC vision and mission ~ Board members communicate the Councils vision and mission to their respective organizations ~ Identify opportunities to incorporate economic development component element in their plans Ensure that our vision is an integral part of the GMA comprehensive plan ~ Board members communicate the vision and mission to their organizations planning process Propose and coordinate the economic development section of the comprehensive plans of the entire county } Review regulations impacting economic development ). Make recommendations to agencies when appropriate Drive collaboration of strategic planning initiatives within the community > Coordinate the review of agencies strategic plans ~, Identify opportunities for collaboration Strengthen the relationship with the tribes >. Engage tribal governments in economic development initiatives ~' Conduct out reach visits to tribal communities Promote the interdependency between business, government, education and health care ~ Quantify the value of collaborative actions ~' Utilize Board of Directors to identify interdependency opportunities 36 Strategies and Actions Acquire and leverage resources to execute the strategic plan > Secure additional funding resources ~' Create a list of people and agencies to assist in implementation of the plan > Encourage Board members to advocate for the strategic plan > Create and implement a fundraising strategy ~ Create and implement a legislative strategy ~ Identify and secure project management needs > Develop a knowledge management system ~ Export marketable components of the strategic plan Develop a Board of Directors whose members are active participants that engage in meeting the Roles and Responsibilities of the EDC Board of Directors ~ Institute an evaluation mechanism to measure the boards effectiveness in achieving the strategic plan ~' Track the Board members participation > Develop strategies to increase participation Leverage the capacity of the PDA and other regional initiatives ~, Participate in Olympic Regional economic partnerships > Identify and connect oppommities to further the strategic plan actions Increase private sector participation and investment > Promote the value of Council membership ~__ Build partnerships in strategic planning initiatives ~' Insdtute a annual membership campaign 37 Strategies and Actions Identify resources to implement elements of the plan } Secure sponsors and funding ~ Utilize cluster expertise Recruit potential businesses from outside the community to relocate Utilize cluster teams to identify targeted prospects Collaborate with tourism marketing campaign Conduct on-site company visitations Participate in identified industry trade shows Lead a countywide effort to create a branding strategy ~. Coordinate focus groups to gather input ~. Locate and utilize existing branding information } Identify and secure funding for implementation Use technology as a marketing tool ~' Develop a web portal >' Develop a community video } Provide electronic information Develop a communication strategy } Integrate public relation and marketi.ng } Establish a communication committee ~ Identify t~nding and apomora to support implementation ~, Lev,raging the Board members to help implement the communications strategy 38 pORTANGELES W A S H I N G T O N, LJ, $, A, CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Glenn A. Cutler, Director of Public Works and Utilities Vehicle Purchases from State Bid Summary: Purchase two Ford Crown Victoria police cars and one Toyota Prius from state bid contracts #0940~ and #0920~. The bi. ds meet the speci~cations and are within budget.. Recommendation: Authorize the City Man.ager to s~gn contracts and purchase orders with approved specified dealers from the state b~d contracts. Background/Analysis: The 2005 budget contains funds to replace two Police vehicles and one hybrid vehicle. Funds have been transferred to the equipment services funds and are available for the procurement. The existing sedans are beyond their economical life and need to be replaced. All three vehicles are available on the State Bid. At this time, local dealers are unable to compete with state procurement bids. The procurement results are summarized below. Budgeted funds available for the vehicles are sufficient to cover the cost. Bids for 2 Police Vehicles and 1 Hybrid Purchase Contracts No. 09404 and No. 09204 (Prices Include Sales Tax and Fees) Vehicle Type Budget State Bid Replacing vehicle #0078 (1992 Chevrolet 2005 Ford Crown Caprice) Victoria $26,500 $23,700 New addition to fleet 2005 Ford Crown Victoria $26,500 $23,700 #1956 (1956 Chevrolet 2005 Toyota Prius Wagon) (hybrid) $30,000 $22,358 It is recommended that the City Manager be authorized to sign contracts for two Police vehicles and one hybrid vehicle. 39 CITY COUNCIL MEETING Port Angeles, Washington January 18, 2005 CALL TO ORDER - REGULAR MEETING: ROLL CALL: PLEDGE OF ALLEGIANCE: PUBLIC CEREMONIES, PRESENTATIONS AND PROCLAMATIONS: WORK SESSION: 8t~ Sh'eet Bridge Stxeetscape Deputy Mayor Braun called the regular meeting of the Port Angeles City Council to order at 6:08 p.m. Members Present: Mayor Headrick [arrived at 6:20 p.m.], Councilmembers Braun, Munro, Pittis, Rogers [arrived at 6:20 p.m.], and Williams. Members ~lbsent: Councilmember Erickson. Staff Present: Manager Quinn, Attorney Bloor, Clerk Upton, B. Collins, G. Cutler, D. McKeen, T. Riepe, Y. Ziomkowski, G. Kenworthy, S. Romberg, and S. Roberds. Public Present: E. Tuttle, K. Romberg, L. Crowley, J. Hoine, D. Tangwall, M. Gentry, K. Zink, S. Moore, C. Kidd, J. Gustafson, A. Sturgeon, D. Schmid, J. Castillo, A. Richter, L. Stamper, P. Lamourenx, S. Dudley, S. Gormley, E. lbarra, J. Minnoch, M. Hunsen, T. Ahlgren, J. Can'ell, C. Rife, D. Ted, B. Matthews, K. Williamson, C. Crumb, S. Adams, L. Morgan-Ellis, and C. Brown. All others present in the audience failed to sign the roster. The Pledge of Allegiance to the Flag was led by Clerk Upton, followed by a moment of silence for former City employee, Dale Miller, who recently passed away. None. 8th Street Bridge Streetscape: Public Works & Utilities Director Cutler informed the Council that the City is moving forward with the 8t~ Street bridges; approval has been received from the State for the project to proceed. He indicated that Bernie Chaplin and Santosh Kuruvilla, Exeltech, were present this evening to present recorrmaendations on the streetscape design recommendations. He was hopeful that, following the presentation, the Council would direct staff as to its preferred streetscape. Aided by PowerPoim slides, Mr. Kumvilla reviewed what has transpired since the last time Exeltech addressed the Council regarding the 8th Street Bridge project. The bridge design was re-analyzed in terms of cost in that there is a maximum budget of $10 million per bridge. Preferred designs and streetscape design options were presented in a public open house in July, final design of the bridges proceeded, and recommendations for the streetscape design were finalized. In considering the streetscapc design, Mr. Kuruvilla indicated various elements were taken into consideration, such as bridge entrance and exit transitions, direct and indirect lighting, rail design, bicyclc~I/d pedestrian facilities in terms of benches and physical 41 -1- CITY COUNCIL MEETING January 18, 2005 WORK SESSION: (Cont'd) Street Bridge Streetscape (Cont'd) LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS & PUBLIC COMMENT: separation, and viewpoints. Mr. Kuruvilla reviewed the methodology used in developing the streetscape design, after which Mr. Bernie Chaplin discussed public involvement in the development and review of the design. He noted that two items of public input proved to be valuable in that one suggested the viewpoint location and rail design should discourage people from dropping objects onto the Truck Route, and the second recommended that efforts be taken to prevent water and gravel from dropping onto the truck Route traffic lanes. Mr. Chaplin advised the Council that the latter issue has been resolved by virtue of new stormwater regulations. With PowerPoint slides showing the design, Mr. Chaplin then discussed the various aspects of the design, to include the entrance, viewpoint, and mils. The total cost for the recommended design would equate to $973,000, and the City's share would be $394,400. Mr. Chaplin then itemized the elements of the streetscape design for the Council's approval. After considering the height of the pedestrian rail, Councilmember Pitlis inquired as to whether the height could be increased in view of past experience with local pedestrians. Mr. Chaplin responded that the standard WSDOT height is 54 inches, but he had contacted WSDOT in this regard and learned that the DOT will consider higher rails under special circumstances. Discussion then centered around the actual measurements of the traffic lanes, the bike lanes, and the sidewalk. Mr. Chaplin clarified there is a 6-inch curb and a 6 ~A-foot sidewalk. Mr. Santosh then informed the Council that the final design should be complete by May, 2005, and an open house will follow in June to discuss construction impacts and sequencing. June, 2005, is the target date for advertising for the contract. Discussion ensued, and Director Cutler clarified for the Council that the $394,000 would come from Capital Facilities. The General Fund reserve has been considered but not finalized. He added that the City will attempt to obtain additional funding from the State in order to reduce the City's expenses. Following further discussion, Councilmember Pittis moved to accept the streetscape design recommendations of the staff, design committee, and consultants, and authorize the consultants to proceed with completion of the design for final plans, specifications, and estimates. The motion was seconded by Couneilmember Rogers and carried unanimously. Councilmember Pittis urged staffto argue for a greater height of the rails, and Councilmember Braun expressed hope that the lights will stand out on the bridges and make a statement for the City. Councilmember Pittis, referencing his previous suggestion to consider a public vote on fluoridation, had hoped to discuss the issue at this evening's meeting. However, in the absence of Councilmember Erickson, he asked that the matter be placed on the next Council agenda for consideration, to which the Council agreed by consensus. Councilmember Williams asked for consideration of drafdng a letter to the Federal Aviation Administration with regard to the recent failure of locator beacons for the ahport. This was added as Agenda Item 1.1. Councilmember Munro asked for an update on tsunami preparation in the area, and Fire Chief McKeen agreed to make a presentation to the Council in February. Manager Quiun asked for consideration of a letter regarding the City being the purveyor of utilities in the Western UGA. This was added as Agenda Item 1.2. Linda Crowley, President of the Port Angeles Swim Club, addressed the Council on the matter of contract fees being proposed by the Parks & Recreation Department for payment by the Swim Club. Ms. Crowley indicated the Swim Club is made up of children from ages 7 - 18 who are part of U.S.A. Swimming and who use the Port Angeles pool for 11 months, 5 days a week, 2 hours per day. Many of the swimmers have gone on to compete in college and national tournaments, but the number of -2- LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS & PUBLIC COMMENT: (Cont'd) CITY COUNCIL MEETING January 18, 2005 swimmers will decrease because pool time and space is being reduced in the proposed contract. Ms. Crowley indicated that the Swim Club has partnered with the City for over 40 years, and the Club practiced in a regular time slot for only the cost of the lifeguards. Under the new proposal, the fees would cost over $16,000 per year and would likely cause the Swim Club to fold. The other proposal submitted by the City would charge City swnnmers an annual fee orS 100 and County swimmers $150, which would eliminate many of the swimmers because farrfilies have 2 or more swimmers. Ms. Crowley indicated that other area youth organizations, such as Jr. Babe Ruth, Youth Soccer, as well as the baseball and softball organizations, are not charged a fee such as that being proposed for the Swim Club. She noted that, two years ago, a kid tax of $10 was disapproved for youth organizations. However, the Swim Club is now being singled out to pay the fees, and many of the parents are questioning why the Club would be charged and others not. She advised the Council that the Swim Club is already an expensive sport at $3,000 per swimmer per year. In addition, the Club has helped over the years to add value to the William Shore Pool through donations, the purchase ora $9,000 scoreboard that allows the School District and the Club to bring swim meets to town, $2,600 in lane lines, a new starting system, touch pads, and a computer operating system that is used by the School District, the Swim Club, and the City. She asked that the Swim Club not be charged these fees as proposed. Discussion followed, with Ms. Crowley answering questions and providing clarification for the Council. She noted that the City was one of the Club's sponsors in the past, and she explained the difference between the Swim Club and the High School swim team. When asked whether the contract had been reviewed by the Parks & Recreation Commission or the Parks Subcommittee, Ms. Crowley indicated that a contract hadn't even existed until 4 - 5 years ago when it was proposed by the Parks Manager at the time. Councilmembar Munro suggested that the matter be taken to the Parks Subcommittee for review, and Manager Quinn assured the Council that staff would pursue the matter. Jim Hoine, Vice President of the Swim Club, expressed concern with the lack of equity as relates to the proposed contract and the associated fees. He felt that, because other youth organizations aren't charged by the City, the Swim Club shouldn't be expected to pay a fee. Mr. Hoine also answered questions posed by the Council, and he noted his family would have to pay $300 since he is a County resident. Other families could be expected to pay up to $600 based on the number of swimmers in their families. Mr. Hoine also addressed the reduction in space being proposed in the contract, as one of the swimming lanes will now be used for lifeguard training. Councilmember Munro reiterated the need for this issue to be addressed by the Parks Subcommittee. Mr. Hoine noted that a meeting had been set for this coming Friday with two members of the City staff, at which time the Swim Club is expected to sign the contract. Mayor Headrick understood if the Swim Club representatives chose not to attend the meeting until the matter could be further addressed. Ed Tuttle, 3909 Old Time Place, was present as President of the Bay Loop Neighborhood Association, Acting President of the Nu Dawn Coalition and, upon request, spokesman on behalf of the majority of the Downtown Association members who felt their Board has not listened or represented them. Mr. Tuttle read a letter, copies of which he distributed to the Council, on the matter of Counciimembar Rogers' participation in negotiations with the P.U.D., as well as the desire to see the Gateway project terminated. Mr. Tuttle shared the results of an informal survey conducted on the Gateway project, and he advised the Council that many business owners are not supportive of the project. Mayor Headrick noted the attendance of a significant number of stodents this evening and, later in the meeting, students Dan Atchesun and Kevin Turner informed Council that their attendan-'~'n4vas related to the High School Contemporary Issues class. -3- CITY COUNCIL MEETING January 18, 2005 LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS & PUBLIC COMMENT: (Cont'd) FINANCE: Purchase of Sewer Inspection Camera System & Vehicle Parametrix Consultant Agreement Oak S~:eet Sewer Repair, Project 04-03, Change Order # 1 Break Following up on Mr. Turtle's commentaries, Manager Quinn advised the Council that he had offered to meet with the downtown businesses to discuss the Gateway project. Paul Lamoureux, 602 Whidby, commended Public Works & Utilities on their efficiencies in completing the Peabody waterline installation. In addition, he advised the Council that he had made a presentation to the Utility Advisory Committee regarding water rotes and the CSO Plan. He asked if there were any potential changes on the Elwha Dam removal project, and Councilmember Rogers responded that the report has just been released so the City has not had an opportunity to review it in any depth. 1. Purchase of Sewer Inspection Camera System & Vehicle: Director Cutler informed the Council that two bids were received for the Sewer Inspection Camera System and vehicle; however, both bids had deficiencies and both bids exceeded the funds available. He asked that both bids be rejected and the purchase be m-bid in 2005. When asked by Councilmember Braun as to the disposition of the current vehicle and equipment, Director Curler responded that both are antiquated and unreliable. Councilmember Pitfis moved to reject all bids on purchase contract #04-18 and allow the Public Works & Utilities Director to re- solicit for the Sewer Inspection Camera System and Vehicle. The motion was seconded by Councilmember Braun and carried unanimously. 2. Parametrix Consultant Agreement: Director Cutler reviewed the proposed agreement with Parametrix for engineering services related to the Solid Waste Utility and Landfill. He reviewed the scope of work and the associated budget with each task. Councilmember Braun noted that this cun~ract has a value of $39,000 per month, and Councilmember Rogers emphasized that much of the work being accomplished via this contract is due to unfunded Federal mandates. Deputy Director of Engineering Services Kenworthy approached the podium to address a question posed by Councilmember Munro related to the consultant's hourly rate. Deputy Director Kenworthy indicated that Paramethx has instituted what could be considered normal increases, and he advised the Council that staffwill be returning to the Council with a request for increased spending on the RFP for the Transfer Station. Councilmember Rogers indicated that the Utility Advisory comrmttee thoroughly reviews all of these items before they are forwarded to the Council. She added that the City doesn't have sufficient staffto meet all of the needs, and the UAC does a benefit analysis of all recommendations. Following further discussion, Councilmember Braun moved to approve and authorize the Mayor to sign an Agreement for Professional Services with Parametriz in the not to exceed amount of $469,525. Couneilmember Williams seconded the motion, which carried unanimously. 3. Oak Street Sewer Repair, Project 04-03, Change Order No. 1: Director Cutler summarized Change Order No. I for the Oak Slreet Sewer Repair project, noting it came about due to unanticipated site conditions, all of which were then described in detail by Deputy Director Kenworthy. Following brief discussiun, Councllmember Rogers moved to approve and authorize the City Manager to sign Contract Change Order No. 1 in the estimated not to exceed amount of $57,000.00 to perform the required additional work. Couneilmember Williams seconded the motion, which carried unanimously. Mayor Headrick recessed the meeting for a break at 7:23 p.m. The meeting reconvened at 7:40 p.m. -4- CONSENTAGENDA: CITY COUNCIL COMMITTEE REPORTS: RESOLUTIONS: ORDINANCES NOT REQUIRING PUBLIC HEARINGS: Street Vacation Petition - Reid, Portion of 16/17 Alley East of"A' Street Ordinance No. 3183 CITY COUNCIL MEETING January 18, 2005 Counciimember Braun moved to accept the Consent Agenda to include: 1.) City Council Special Meeting Minutes - December 29, 2004, and Regular Council Meeting of January 4, 2005; 2.) Expenditure Report - January 7, 2005 - $610,649.67; 3.) Electronic Payments - January 7, 2005 - $1,995,976.00; 4.) Reappointments to City Boards and Commissions. The motion was seconded by Councilmember Munro. Councilmember Pittis indicated he had spoken with the City Clerk about Page 2, Paragraph 3, of the December 29, 2004, Special Council Meeting minutes. Reference was made to copper dam, which should be corrected to coffer dam- Manager Quinn directed the Council's attention to the proposed appointment of Interim Planning comnUssiuners. A vote was taken on the motion, which carried 5 - 1, with Couneilmember Rogers abstaining from the vote on the January 4, 2005, minutes due to absence from the meeting. None. None. Street Vacation Petition - STV 04-01 - Reid, Portion of 16/17 ~4lley East of "4 "Street: Conznunity Development Manager Collins advised the Council that, after the close of the public hearing on January 4, staffcontinued to meet with Mr. Reid and felt it was ready to proceed with the vacation. He noted the two conditions being recommended and offered clarification specific to Condition No. 1. The only access to the site is through 170` Street on the south side of the property, and the Real Estate Committee directed the Public Works Director to work with Mr. Reid to see if access could be changed to "A" Street. It is recognized that, although "A" Street has not been rededicated, the access to the site would occur through either 170` Street or "A' Street, which must be approved by Public Works in the design. Mr. Collins believed agreement was reached to vacate 170` Street and rededicate "A' Street, but those actions must come before the Council in a separate meeting. He added that, if Condition No. 1 were to be eliminated, then the only access would be from 170` Street. Assistant Planner Roberds provided clarification regarding the actual number of findings being brought before the Council; there are fourteen findings to be considered. Discussion ensued with regard to the fact that access through 170` Street must be allowed until the time"A" Street is rededicated, and Councilmember Williams clarified that the Real Estate Committee didn't want access from 17th Street to the Track Route. Further, if this isn't approved, then there is no way for the applicant to have ingress and egress until the time "A" Street is rededicated. Mr. Collins felt there is no difficulty anticipated in rededicaimg "A" Street from Lauridsen to 170` Street. Councilmember Williams inquired as to what public process must be followed in such a rededication, and Mr. Collins responded it is just an action of the Council. Attorney Bloor advised the Council that, if so desired, it could authorize the Director of Public Works or the City Manager to sign the appropriate papers to rededicate that portion of"A" Street, after which the documents must be appropriately recorded. Therefore, Councilmember Williams moved to authorize the Director of Public Works or the City Manager to sign the appropriate papers to rededicate that portion of "A" Street from Lauridsen Boulevard to 17th Street. The motion was seconded by Couneilmember Rogers and carried unanimously. Discussion followed as to the language included in Condition No. 1, and the Council observed that the portion, %.. 170` Street to the Tumwater Track Route..." could now be deleted by virtue of the motion just passed. Mayor Headrick then read the Ordinance by title, entitled 45 -5- CITY COUNCIL MEETING January 18, 2005 ORDINANCES NOT REQUIRING PUBLIC HEARINGS: (Cont'd) Street Vacation Petition Reid, Portion of 16/17 Alley East of"A" Street Ordinance No. 3183 (Cont'd) Update of Disabled Persons Parking Ordinance No. 3184 OTHER CONSIDERATIONS: Letter to FAA re. Locator Beacons Letter re. Purveyor of Utilities in Western UGA ORDINANCE NO. 3183 AN ORDINANCE of the City of Port Angeles, Washington, vacating a portion of the 16/17 alley west of Tumwater Track Route in Port Angeles, Clallam County, Washington. Councilmember Williams moved to adopt the Ordinance as read by title, citing Conditions 1 - 2, with the correction to Condition No. I as recorded above; Findings I - 14; and Conclusions A - E; as set forth in Exhibit A", which is attached to and becomes a part of these minutes. The motion was seconded by Counellmember Braun and carried unanimously. 2. Update of Disabled Persons Parking: Attomey Bloor advised the Council that, based on input from Peter Ripley at the previous meeting, further research was conducted on language included in the proposed Ordinance specifically relating to the terminology of "handicapped" as opposed to "disabled". The State recently changed its statute to use the word "disabled", so the Ordinance now incorporates "disabled" throughout. Attorney Bloor further indicated that the purpose of the Ordinance is to increase the penalty for Disabled Parking violations from $175 to $250. Couneilmember Fittis moved to adopt the Ordinance as presented, the title of which is as follows: ORDINANCE NO. 3184 AN ORDINANCE of the City of Port Angeles, Wastfmgton, relating to parking for disabled persons. Councilmember Rogers seconded the motion, which carried unanimously. Councilmember Williams thanked Mr. Ripley for bringing this matter to the Council's attention. 1. Letter to FAA re. Locator Beacons: Having requested consideration of this matter, Councilmember Williams cYtrected the Council's attention to a newspaper article that appeared in today's Peninsula Daily News regarding the failure of one of the locator beacons for the William R. Fairchild International Airport during the recent snowstorm. This down time resulted in the cancellation of twelve flights. Councilmember Williams indicated the locator beacons are currently fLxed manually, but the Federal Aviation Admiinsttation has equipment that can remotely do a reset. He felt it would be appropriate for the City to send a letter to the FAA urging them to resolve the situation, and he suggested that the writing of such a letter be coordinated with JeffRobb at the Port. Agreeing that an airline link to the City is extremely important, Couneilmember Rogers moved to have the City Manager draft a letter for the Mayor's signature regarding the Iocator beacons. Councilmember Williams seconded the motion, which carried unanimously. 2. Letter re. Purveyor of Utilities in Western UGA : Manager Quiun referenced a series of meetings held with representatives of the Alder Mill, and one of the issues identified had to do with the Mill's need to submit a building permit application to the County. As part of the application process, the Mill must designate who will be providing utilities to the site. At this time, the City is the only entity capable of providing sewer, and either the City or Dry Creek could provide water, but the City is authorized to provide that service in the UGA. In terms of electricity, the City or the P.U.D. could be the providers, but the City has the capability 46 -6- OTHER CONSIDERATIONS: (Cont'd) Letter re. Purveyor of Utilities in Western UGA (Cont'd) PUBLIC HEARINGS - OTHER: PUBLIC HEARINGS - QUASI JUDICIAL: INFORMATION: EXECUTIVE SESSION: RETURN TO OPEN SESSION: ADJOURNMENT: CITY COUNCIL MEETING January 18, 2005 once an area is annexed. An annexation petition is currently being circulated and will be addressed by the Council at a future date. Therefore, at this time, it is recommended that the City provide the Mill with a letter indicating its willingness to be thc purveyor of water and sewer for P. A. Hardwood. Councilmember Rogers indicated the Community & Economic Development Committee was in agreement, and Manager Quinn clarified that the City would be the water purveyor in that Dry Creek cannot provide sufficient fire flow. Water and sewer is necessary for P. A. Hardwood to proceed with its permitting application. Brief discussion ensued on how this may impact discussions on cost sharing, and Manager Quinn felt it wouldn't impact a cost-sharing agreement. Councilmember Williams moved to provide a letter to P. A. Hardwood indicating the City's willingness to be the purveyor of water and sewer services. Councilmember Braun seconded the motion, which carried unanimously. None. None. Manager Quinn referenced the year-end report on the status of projects, noting about 62% of the projects were completed. About 38% of the projects were held over to this year. He felt it was an ambitious project list, and Councilmember Pittis felt it would be appropriate for the Council to review and prioritize staffs project work list for this year. Brief discussion followed. Based on input from Attorney Bloor, Mayor Headdck announced the need for an Executive Session for one hours for an item under the authority of RCW 42.30.110(i), to discuss with Legal Counsel matters relating to agency litigation or potential litigation; an item under the authority of RCW 42.30.110(c), to consider the possible purchase of real estate; and an item under the authority of RCW 42.30.110(g), to consider an employee evaluation. It was anticipated there would be no action taken. The Executive Session convened at 8:10, and at approximately 9:10 p.m., the Session was extended to 9:50 p.m. by announcement of the Mayor. The Executive Session concluded at 9:50 p.m., and the Council reconvened in regular open session. The meeting was adjourned at 9:50 p.m. Richard A. Headdck, Mayor Becky J. Upton, City Clerk Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/21/05 Vendor AQUATIC ACCESS INC CARTEGRAPH SYSTEMS INC CLALLAM CNTY TREASURER COOKE CO, J P HMIS CEMETERY SO--ARE JPMORGANCHASE J. Strauss Monica Graves NEW WORLD SYSTEMS POSTER COMPLIANCE CENTER WA STATE PATROL - WASIS WASHINGTON STATE TREASURER JPMORGANCHASE Legislative JPMORGANCHASE OLYMPIC REGION CLEAN AIR AGCY OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC TELECOM LABS INC WASHINGTON (DIS), STATE OF City Manager Department PUD #1 OF CLALLAM COUNTY City Manager Department COSTCO CREDIT CARD PMTS TELECOM LABS INC WASHINGTON (DIS), STATE OF Description PUMPS & ACCESSORIES SUPPLIES CVCA remittance-Dec Pet tags Account Number 001-0000-237.00-00 001-0000-237.00-00 001-0000-229.40-00 001-0000-237.00-00 COMPUTER SOFTWARE FOR MIC 001-0000-237.00-00 Radio Batteries Table Cash register rolls Renew Money magazine Trolley Foot rest,printer stand DEP RFD CLUBHOUSE DEP RFD VBMCC 12/18/04 Conviction Data Report 7.0 Upgrade State and Federal posters Criminal history-Mills Crim history-Breitbach Criminal history-Greeley Criminal history-Hoyle Criminal history-Maynard Criminal history-Phegley Criminal history-Sockman District Ct Revenue-Dec District Ct Revenue-Dec Business meal Mayor & Council Legislative Travel 2005 Assessment OFFICE SUPPLIES Maintenance-January Maintenance-February Scan chgs-December City Manager Office Meter Reading Training Customer Commitment Computer monitor Maintenance-February Scan chgs~December 4g Invoice Amount -4.40 -66.40 263.16 -8.95 -40.67 001-0000-237.00-00 -34.69 001-0000-237.00-00 -18.09 001-0000-237.00-00 -35.82 001-0000-237.00-00 -2.07 001-0000-237.00-00 -25.13 001-0000-237.00-00 -10.14 001-0000-239.10-00 50.00 001-0000-239.10-00 50.00 001-0000-237.00-00 -41.50 001-0000-237.00-00 -83.00 001-0000-237.00-00 -20.28 001-0000-229.50-00 25.00 001-0000-229.50-00 24.00 001-0000-229.50-00 24.00 001-0000-229.50-00 24.00 001-0000-229.50-00 24.00 001-0000-229.50-00 24.00 001-0000-229.50-00 24.00 001-0000-229.10-00 153.00 001-0000-229.30-00 11,532.29 Division Total: $11,826.31 Department Total: $11,826.31 001-1160-511.43-10 16.30 Division Total: $16.30 Department Total: $16.30 001-1210-513.43-10 1,258.11 001-1210-513.49-10 6,930.00 001-1210-513.31-01 33.88 001-1210-513.48-10 32.49 001-1210-513.42-10 31.12 001-1210-513.42-10 45.40 Division Total: $8,331.00 001-1211-513.43-10 1,092.00 Division Total: $1,092.00 001-1220-516.31-60 465.68 001-1220-516.42-10 31.12 001-1220-516.42-10 10.28 Page 1 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor City Manager Department COSTCO CREDIT CARD PMTS PENINSULA DAILY NEWS TELECOM LABS INC WASHINGTON (DIS), STATE OF City Manager Department JPMORGANCHASE OLYMPIC STATIONERS INC PACIFIC OFFICE FURNITURE PORT ANGELES CITY TREASURER TELECOM LABS INC VIKING OFFICE PRODUCTS WASHINGTON (DIS). STATE OF Finance Department COSTCO CREDIT CARD PMTS MICROFLEX INC OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC TELECOM LABS INC UNITED PARCEL SERVICE VIKING OFFICE PRODUCTS WASHINGTON (DIS), STATE OF Finance Department ANGELES MILLWORK & LUMBER CO COSTCO CREDIT CARD PMTS DATABAR INCORPORATED JPMORGANCHASE OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC Description Human Resources Computer monitor Vendor lists Ord 3178-Budgets Ord 3182-A/R Collections Maintenance-February Scan chgs-December City Clerk City Manager Department Ferry tickets Renew Money magazine Office supplies OFFICE CHAIR DESK Chair Business lunch-YZ Maintenance-February Office supplies Scan chgs-December Finance Administration Computer monitors 2005 TAXTOOL REPORT DESK ORGANIZER CALENDAR AND COPY PAPER TONER CARTRIDGE Maintenance-February Shipping chgs-December Form 1099's,envelopes Office supplies Scan chgs-December Accounting FRONT COUNTER ADDITION Laminate Computer monitor 1977 Final statements Cycles 1-5 Cycles 6-10 Cash register roils MONITOR STAND, COPY PAPER COPY PAPER Office supplies CASH REGISTER RIBBONS 5O Account Number Invoice Amount Division Total: $507.08 001-1230-514.31-60 465.68 001-1230-514.44-10 21.60 001-1230-514.44-10 23.40 001-1230-514.44-10 20.70 001-1230-514.42-10 15.56 001-1230-514.42-10 6.41 Division Total: $553.35 Department Total: $10,483.43 001-2010-514.43-10 160.00 001-2010-514.49-01 27.02 001-2010-514.31-01 243.99 001-2010-514.31-01 319.49 001-2010-514.31-01 164.62 001-2010-514.31-01 319.49 001-2010-514.31-01 10.00 001-2010-514.42-10 31.12 001-2010-514.31-01 43.31 001-2010-514.42-10 13.78 Division Total: $1,332.82 001-2023-514.31-60 931.36 001-2023-514.41-50 1,200.00 001-2023-514.31-01 38.97 001-2023-514.31-01 8.02 001-2023-514.31-01 107.21 001-2023-514.42-10 38.89 001-2023-514.42-10 192.34 001-2023-514.31-01 97.13 001-2023-514.31-01 112.92 001-2023-514.42-10 8.31 Division Total: $2,735.'15 001-2025-514.48-10 35.91 001-2025-514.48-10 69.59 001-2025-514.31-60 465.68 001-2025-514,41-50 1,161.53 001-2025-514.41-50 1,591.00 001-2025-514.41-50 1,995.22 001-2025-514.31-01 467.32 001-2025-5t4.31-01 201.44 001-2025-514.31-01 43.86 001-2025-514.31-01 401.04 001-2025-514.31-01 32.49 Page 2 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/21/05 Vendor PACIFIC OFFICE EQUIPMENT INC... PENINSULA DAILY NEWS PORT ANGELES CITY TREASURER SUNSET DO-IT BEST HARDWARE TELECOM LABS INC VERIZON WIRELESS WASHINGTON (DIS), STATE OF Finance Department AMSAN OLYMPIC SUPPLY DIVERSIFIED RESOURCES OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC PORT ANGELES CITY TREASURER RESERVE ACCOUNT UNITED PARCEL SERVICE VIKING OFFICE PRODUCTS XEROX CORPORATION Finance Department COSTCO CREDIT CARD PMTS GREAT AMERICAN LEASING CORP JPMORGANCHASE KNUTSON, CRAIG D OLYMPIC STATIONERS INC PORT ANGELES CITY TREASURER TELECOM LABS INC UNITED PARCEL SERVICE WASHINGTON (DIS), STATE OF WEST GROUP Attorney CITY OF FORKS Attorney COSTCO CREDIT CARD PMTS GREAT AMERICAN LEASING CORP MA'I-rHEW BENDER & CO INC OLYMPIC STATIONERS INC Description TONER CARTRIDGE Click to Gov ads Safety glasses-truck Laminate Credit laminate Maintenance-February 01-09 a/c 47024274400001 Scan chgs-December Customer Service Copy paper Copy center svcs-Dec COPY PAPER COPY PAPER COPY PAPER COPY PAPER Office supplies SHREDDER REPAIR Reimb postage-copy ctr POSTAGE METER Shipping chgs-December Office supplies Copier lease-December Copier lease-December Reprographics Finance Department Computer monitor JAN COPIER LEASE Foot rest,printer stand Prof svcs pe 12-31-04 COPY PAPER Business lunch-Bloor Maintenance-February Shipping chgs-December Scan chgs-December Information chgs-Dec Attorney Office Inmate care-December Jail Contributions Computer monitor JAN COPIER LEASE WA Criminal Practice COPY PAPER 51 Account Number Invoice Amount 001-2025-514.31-01 107.20 001-2025-514.44-10 584.16 001-2025-514.31-80 10.07 001-2025-514.48-10 69.59 001-2025-514.48-10 -69.59 001-2025-514.42-10 93.35 001-2025-514.42-10 34.74 001-2025-514.42-10 11.09 Division Total: $7,305.69 001-2080-514.31-01 394.21 001-2080-514.41-50 814.00 001-2080-514.31-01 162.45 001-2080-514.31-01 438.62 001-2080-514.31-01 438.62 001-2080-514.31-01 1,842.20 001-2080-514.31-01 447.97 001-2080-514.48-10 105.59 001-2080-514.42-10 2.80 001-2080-514.42-10 10,000.00 001-2080-514.42-10 32.00 001-2080-514.31-01 78.76 001-2080-514.45-30 653.39 001-2080-514.45-30 2,606.20 Division Total: $18,016.81 Department Total: $29,390.47 001-3010-515.31-60 465.68 001-3010-515.45-30 138.92 001-3010-515.31-01 132.29 001-3010-515.41-50 450.00 001-3010-515.31-01 131.58 001-3010-515.31-01 10.00 001-3010-515.42-10 38.89 001-3010-515.42-10 4.96 001-3010-515.42-10 30.69 001-3010-515.31-01 240.40 Division Totah $1,643.41 001-3012-598.51-23 4,430.00 Division Total: $4,430.00 001-3021-515.31-60 465.68 001-3021-515.45-30 138.93 001-3021-515.31-01 260.25 001-3021-515.31-01 131.58 Page 3 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor TELECOM LABS INC WASHINGTON (DIS), STATE OF WEST GROUP Attorney COSTCO CREDIT CARD PMTS JPMORGANCHASE OLYMPIC STATIONERS INC PENINSULA DAtLY NEWS TELECOM LABS INC WASHINGTON (DIS), STATE OF Community Developmt Dept GREAT AMERICAN LEASING CORP PACIFIC OFFICE FURNITURE Community Developmt Dept CAPACITY PROVISIONING INC OLYMPIC STATIONERS ~NC PACIFIC OFFICE EQUIPMENT INC SWAIN'S GENERAL STORE INC TELECOM LABS INC WA ASSN OF SHERIFFS & POLICE WASHINGTON (DIS), STATE OF Police Department ERIC KOVATCH OLYMPIC STATIONERS INC PORT ANGELES POLICE DEPARTMENT RADIOSHACK SWAIN'S GENERAL STORE TELECOM LABS INC WASHINGTON (DIS), STATE OF WESTERN STATES HOSTAGE WVClA-WA VIOLENT CRM INV ASSN Police Department AMSAN OLYMPIC SUPPLY ANGELES CLINIC FOR ANIMALS Description Maintenance-February Scan chgs-December Information chgs-Dec Prosecution Attorney Computer monitor Calendar refill Business meals,parking OFFICE SUPPLIES, GENERAL OFFICE SUPPLY,INKS,LEADS Ord 3179,3180,3181 North Oly Bldrs Notice Maintenance-February Account Number 001-3021-515.42-10 001-3021-515.42-10 001-3021-515.31-01 Division Total: Department Total: 001-4010-558.31-60 001-4010-558.31-01 001-4010-558.43-10 001-4010-558.31-01 001-4010-558.31-01 001-4010-558.44-10 001-4010-558.44-10 001-4010-558.42-10 COMPUTERS,DP & WORD PROC. 001-4010-558.31-60 Scan chgs-December Planning JAN COPIER LEASE USED FILE CABINET Building Community Developmt Dept INET Svcs Jan-City Hall Labels Maintenance-January Candy canes Maintenance-February DUES 05 GALLAGHER ACTIVE DUES 2005-RIEPE Scan chgs-December Administration JKT E KOVATCH CLOTH ALLOW Office supplies Petty cash reimbursements Headphone Video tape Tarps,rope,tent stakes Maintenance-February Scan chgs-December 2005 DUES-LOWELL REGISTRATION-LOWELL Investigation Truck brush Emergency visit-Kilo 001-4010-558.42-10 Division Total: 001-4020-524.45-30 001-4020-524.31-01 Division Torah Department Torah 001-5010-521.42-12 001-5010-521.31-01 001-5010-521.48-10 001-5010-521.31-01 001-5010-521.42-10 001-5010-521.43-10 001-5010-521.43-10 00%5010-521.42-10 Division Totah 001-5021-521.31-11 001-5021-521.31-01 001-5021-521.31-01 001-5021-521.31-60 001-5021-521.31-01 001-5021-521.31-01 001-5021-521.42-10 001-5021-521.42-10 001-5021-521.43-10 001-5021-521.43-10 Division Totah 001-5022-521~31-01 001-5022-521.49-80 Invoice Amount 15.56 5.73 240.39 $1,258.12 $7,331.53 465.68 34.64 36.90 43.13 22.73 70.20 56.70 31.12 722.47 22.97 $1,506.54 173.02 128.88 $301.90 $1,808.44 172.00 2.96 32.49 7.30 54.45 75.00 305.00 43.65 $692.85 81.08 22.92 8.64 17.32 22.86 79.28 7.78 66.77 25.00 395.00 $726.65 23.76 144.65 Page 4 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor BLUMENTHAL UNIFORMS & EQUIP GALLS INCORPORATED JASON VIADA OLYMPIC STATIONERS INC PORT ANGELES POLICE DEPARTMENT SECOND CHANCE BODY ARMOR INC Police Department BLUMENTHAL UNIFORMS & EQUIP PACIFIC OFFICE EQUIPMENT INC PORT ANGELES POLICE DEPARTMENT Police Department OLYMPIC PRINTERS INC OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC PORT ANGELES POLICE DEPARTMENT TELECOM LABS INC WASHINGTON (DIS), STATE OF Police Department CLALLAM CNTY HUMANE SOCIETY COOKE CO, J P Police Department AT&T WIRELESS CAPACITY PROVISIONING INC COSTCO CREDIT CARD PMTS GREAT AMERICAN LEASING CORP JPMORGANCHASE OLYMPIC PRINTERS INC OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC Description Uniforms-Thomas Uniforms-Stratford Credit traffic vests Uniforms-Baertschiger Drug tests Clothing-McFall Clothing-McFall Patches Binders Folders Folders Petty cash reimbursements Petty cash reimbursements Body armor Body armor Patrol Reserve jackets Maintenance-January Petty cash reimbursements Petty cash reimbursements Reserves & Volunteers Paper Office supplies Index paper COPY PAPER Maintenance-January Petty cash reimbursements Maintenance~February Scan chgs-December Records Contract pmt-December Pet tags Animal Control Police Department 01-02 a/c 04746898102 INET Svcs Jan-Fire Stn Office supplies JAN COPIER LEASE Grant Writing Workshop LETTERHEAD SUPPLIES LIBRARY SERVICES(EXCL 908 53 Account Number Invoice Amount 001-5022-521.20-80 98.95 001-5022-521.20-80 59.35 001-5022-521.20-80 -67.40 001-5022-521.20-80 77.19 001-5022-521.31-01 150.14 001-5022-521.20-80 65.18 001-5022-521.20-80 104.80 001-5022-521.31-01 80.00 001-5022-521.31-01 22.58 001-5022-521.31-01 9.03 001-5022-521.31-01 5.88 001-5022-521.31-01 109.73 001-5022-521.42-10 67.22 001-5022-521.31-11 672.11 001-5022-521.31-11 160.29 Division Totah $1,783.46 001-5026-521.31-01 145.14 001-5026-521.48-10 167.97 001-5026-521.31-01 25.00 001-6026-521.43-10 10.00 Division Totah $348.11 001-5029-521.31-01 61.41 001-5029-521.31-01 35.48 001-5029-521.31-01 11.70 001-5029-521.31-01 131.58 001-5029-521.48-10 108.30 001-5029-521.31-01 22.50 001-5029-521.42-10 38.89 001-5029-521.42-10 9.47 Division Total: $419.33 001-5090-521.41 -50 3,855.66 001-5090-521.48-10 116.75 Division Totah $3,972.41 Department Total: $7,942.81 001-6010-522.42-10 235.55 001-6010-522.42-12 172.00 001-6010~522.31-01 108.07 001-6010-522.45-30 212.83 001-6010-522.43-10 390.00 001-6010-522.31-01 102.67 001-6010-522.31-01 19.89 001-6010-522.31-01 7.58 Page 5 Date: 1/24105 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor SWAIN'S GENERAL STORE INC TELECOM LABS INC WASHINGTON (DIS), STATE OF Fire Department COSTCO CREDIT CARD PMTS JPMORGANCHASE SUNSET DO-IT BEST HARDWARE SWAIN'S GENERAL STORE INC TELECOM LABS INC Fire Department AT&T WIRELESS JPMORGANCHASE Fire Department AT&T WIRELESS BLUMENTHAL UNIFORMS & EQUIP Mark Kar~alainen SWAIN'S GENERAL STORE INC SYSTEMS DESIGN TELECOM LASS INC WASHINGTON (DIS), STATE OF Fire D*partment AT&T WIRELESS COSTCO CREDIT CARD PMTS JPMORGANCHASE OLYMPIC PRINTERS INC TELECOM LABS INC Fire Department AT&T WIRELESS COSTCO CREDIT CARD PMTS JPMORGANCHASE SWAIN'S GENERAL STORE INC Fire Department COSTCO CREDIT CARD PMTS JPMORGANCHASE SWAIN'S GENERAL STORE INC Fire Department GLOBALSTAR USA Fire Department Description NURSERY STOCK & SUPPLIES Maintenance-February Scan chgs-December Administration Batteries Radio Batteries MACHINERY & HEAVY HRDWARE 001-6020-522.31-01 SHOES AND BOOTS ELECTRICAL CABLES & WIRES ELECTRONIC COMPONENTS Maintenance-February Fire Supression 01-02 a/c 04743736255 Meeting meal Fire Volunteers 01-02 a/c 04747951801 SALE SURPLUS/OBSOLETE REIMB CLOTHING ALLOWANCE HARDWARE,AND ALLIED ITEMS FINANCIAL SERVICES Maintenance-February Scan chgs-December Medic I 01-02 a/c 04745598455 Office supplies Business meals Inspection notices Maintenance-February Fire Prevention 01-02 a/c 047190061 Office supplies Various supplies MARKERS, PLAQUES,SIGNS OFFICE SUPPLIES, GENERAL Fire Training Supplies Station bedding APPLIANCES, HOUSEHOLD ENGINGEERING SERVICES SALE SURPLUS/OBSOLETE Facilities Maintenance 12-16 A/C 1.10012919 Emergency Management 54 Account Number Invoice Amount 001-6010-522.31-01 17.19 001-6010-522.42-10 38.89 001-6010-522.42-10 12.20 Division Total: $1,316.87 001-6020-522.31-01 109.39 001-6020-522.31-14 452.59 4.33 001-6020-522.20-80 64.84 001-6020-522.31-01 11.63 001-6020-522.31-01 7.08 001-6020-522.42-10 23.34 Division Total: $673.20 001-6021-522.42-10 8.00 001-6021-522.31-01 43.23 Division Total: $51.23 001-6025-526.42-10 31.76 001-6025-526.20-80 77.14 001-6025-526.20-80 165.44 001-6025-526.20-80 32.38 001-6025-526.41-50 2,371.30 001-6025-526.42-10 7.78 001-6025-526.42-10 12.54 Division Total: $2,698.34 001-6030-522.42-10 13.80 001-6030-522.31-01 27.06 001-6030-522.43-10 63.50 001-6030-522.31-01 329.75 001-6030-522.42-10 7.78 Division Total: $441.89 001-6040-522.42-10 7.85 001-6040-522.31-01 17.31 001-6040-522.31-01 184.52 001-6040-522.31-01 21.71 001-6040-522.31-01 12.43 Division Total: $243.82 001-6050-522.31-20 180.17 001-6050-522.31-20 1,373.02 001-6050-522.31-20 18.38 001-6050-522.31-20 2.02 001-6050-522.31-20 90.48 Division Total: $1,664.07 001-6060-525.42-10 39.91 Division Total: $39.91 Page 6 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/21/05 Da~:1~4~5 Vendor AT&T WIRELESS AT&T WIRELESS (DIGITAL) CARTEGRAPH SYSTEMS INC GREAT AMERICAN LEASING CORP OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC PORT ANGELES CITY TREASURER QWEST TELECOM LABS INC UTILITIES UNDERGROUND LOC CTR WASHINGTON (DIS), STATE OF WASHINGTON (OMWBE), STATE OF XEROX CORPORATION Public Works-Gen Fnd AT&T WIRELESS (DIGITAL) CAPACITY PROVISIONING INC PACIFIC OFFICE EQUIPMENT INC PORT ANGELES CITY TREASURER TELECOM LABS INC WASHINGTON (DIS), STATE OF Parks & Recreation DAKTRONICS INC TELECOM LABS INC WASHINGTON (DIS), STATE OF Parks & Recreation CAPACITY PROVISIONING INC GREAT AMERICAN LEASING CORP TELECOM LABS WASHINGTON (DIS), STATE OF Parks & Recreation AMSAN OLYMPIC SUPPLY CAPACITY PROVISIONING INC PORT ANGELES CITY TREASURER TELECOM LABS INC VIKING OFFICE PRODUCTS Description Fire Department 12-27 a/c 04748966287 12-24 a/c 0057007521 SUPPLIES JAN COPIER LEASE OFFICE SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES COPY PAPER OFFICE SUPPLIES COPY PAPER TYPEWRITER MAINTENANCE Postage-Sperr 01-05 a/c 3604520140945B Maintenance-February December locates Scan chgs-December Political Subdivisions Copier lease-December Administration Public Works-Gen Fnd 12-24 a/c 0048944061 INET Svcs Jan-Fine Arts FAX REPAIR Office supplies-Marl Maintenance-February Scan chgs-December Administration Scoreboard maint pe 04-05 Maintenance-February Scan chgs-December Recreation INET Svcs Jan-Senior Ctr JAN COPIER LEASE Maintenance-February Scan chgs-December Senior Center Copy paper INET Svcs Jan-Wm Shore Hole punch-Oliver Maintenance-February Receipt books 55 Account Number Invoice Amount Depa~mentTotal: $7,t29.33 001-7010-532.42-10 19.45 001-7010-532.42-10 42.65 001-7010-532.45-30 866.40 001-7010-532.45-30 64.96 001-7010-532.31-01 10.43 001-7010-532.31-01 43.71 001-7010-532.31-01 68.08 001-7010-532.31-01 43.86 001-7010-532.31-01 14.95 001-7010-532.31-01 438.63 001-7010-532.31-01 70.40 001-7010-532.42-10 9.76 001-7010-532.42-10 40.84 001-7010-532.42-10 217.78 001-7010-532.41-50 37.40 001-7010-532.42-10 97.79 001-7010-532.49-01 25.00 001-7010-532.45-30 1,211.45 Division Totah $3,323.54 Department Total: $3,323.54 001-8010-574.42-10 24.28 001-8010-574.42-12 172.00 001-8010-574.45-30 75.81 001-8010-574.31-01 28.66 001-8010-574.42-10 23.34 001-8010-574.42-10 15.26 Division Totah $339.35 001-8011-574.41-50 1,567.65 001-8011-574.42-10 15.56 001-8011-574.42-10 11.19 Division Totah $t,594.40 001-8012-555.42-12 172.00 001-8012-555.45-30 171.40 001-8012-555.42-10 23.34 001-8012-555.42-10 0.24 Division Totah $366.98 001-8020-576.31-01 179.78 001-8020-576.42-12 172.00 001-8020-576.31-01 9.98 001-8020-576.42-10 7.78 001-8020-576.31-01 97.36 Page 7 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor Parks & Recreation ANGELES MILLWORK & LUMBER CO BLAKE SAND & GRAVEL INC CAPACITY PROVISIONING INC HMIS CEMETERY SOFTVVARE PENINSULA DAILY NEWS SUNSET DO-IT BEST HARDWARE SWAIN'S GENERAL STORE INC TELECOM LABS INC WASHINGTON (DIS), STATE OF XEROX CORPORATION Parks & Recreation AMSAN OLYMPIC SUPPLY ANGELES MACHINE WORKS INC ANGELES MILLWORK & LUMBER CO AQUATIC ACCESS INC AT&TWIRELESS BAXTER AUTO PARTS #15 Description Account Number William Shore Pool Division Total'. LUMBER& RELATED PRODUCTS 001-8050-536.31-20 ROAD/HWY MAT NONASPHALTIC 001-8050-536.31-20 INET Svcs Jan-Cemetery 001-8050-536.42-12 COMPUTER SOFTWARE FOR MIC 001-8050-536.41-50 COMMUNICATIONS/MEDIA SERV 001-8050-536.44-10 RENTAL/LEASE EQUIPMENT RENTAL/LEASE EQUIPMENT HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS RENTAL/LEASE EQUIPMENT 001-8050-536.31-01 001-8050-536.31-01 001-8050-536.31-20 001-8050-536.31-20 001-8050-536.34-01 HAND TOOLS ,POW&NON POWEF001-8050-536.31-20 Maintenance-February Scan chgs-December RENTAL/LEASE EQUIPMENT Ocean View Cemetery CHEMICAL, COMMERCIAL,BULK 001-8050-536.42-10 001-8050-536.42-10 001-8050-536.45-30 DivisionTotah 001-8080-576.31-20 WATER&SEWER TREATING CHEM;)01-8080-576.31-20 CHEMICAL, COMMERCIAL,BULK 001-8080-576.31-20 WATER&SEWER TREATING CHEbO01-8080-576.31-20 WATER&SEWER TREATING CHEbg01-8080-576.31-20 JANITORIAL SUPPLIES 001-8080-576.31-20 CHEMICAL, COMMERCIAL,BULK 001-8080-576.31-20 WATER&SEWER TREATING CHEk,901-8080-576.31-20 Dispenser METALS,BARS,PLATES,RODS LUMBER& RELATED PRODUCTS HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS BUILDER'S SUPPLIES HARDWARE,AND ALLIED ITEMS BUILDER'S SUPPLIES FASTENERS, FASTENING DEVS LUMBER& RELATED PRODUCTS HARDWARE,AND ALLIED ITEMS AUTO & TRUCK MAINT. ITEMS PUMPS & ACCESSORIES 01-02 a/c 04744704773 01-02 a/c 04746008926 LAWN MAINTENANCE EQUIP ELECTRICAL EQUIP & SUPPLY 56 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.42-10 001-8080-576.42-10 001-8080-576.31-20 001-8080-576.31-20 Invoice Amount $466.90 153.79 18.95 172.00 530.67 127.30 11.37 11.37 158.64 82.73 11.37 22.68 7.78 5.47 68.19 $t,382.31 175.99 197.81 179.38 197.81 197.81 57.40 179.38 197.81 328.47 6.02 16.25 11.69 17.90 23.23 32.26 2.39 10.78 15.15 33.25 0.76 26.87 30.53 5.87 15.45 32,08 18.04 Page 8 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 Vendor BAXTERAUTOPARTS#15... BLAKE SAND & GRAVEL tNC CAPACITY PROVISIONING INC COPY CAT GRAPHICS GRAINGER HARTNAGEL BUILDING SUPPLY INC L & L TOOL SPECIALTIES LINCOLN INDUSTRIAL CORP MT PLEASANT COUNTRY SUPPLY OLYMPIC SEWER & DRAIN CLEANING OLYMPIC STATIONERS INC PEN PRINT INC PORT ANGELES POWER EQUIPMENT QWEST SEARS COMMERCIAL ONE SUNSET DO-IT BEST HARDWARE SWAIN'S GENERAL STORE INC Description Account Number HARDWARE,AND ALLIED iTEMS 001-8080-576.31-20 PAINTS,COATINGS,WALLPAPER 001-8080-576.31-20 HAND TOOLS ,POW&NON POWEF001-8080-576.31-20 BRICKS & CLAY PRODUCTS ROAD/HWY MAT NONASPHALTIC INET Svcs Jan-VBCC INET Svcs Jan-Parks INET Svcs Jan-Carnegie HARDWARE,AND ALLIED ITEMS PIPE FITTINGS HARDWARE,AND ALLIED ITEMS ELECTRONIC COMPONENTS HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS PW CONSTRUCTION & RELATED OFFICE SUPPLIES, GENERAL OFFICE SUPPLIES, GENERAL OFFICE SUPPLIES, GENERAL PRINTING,SILK SCR,TYPSET LAWN MAINTENANCE EQUIP 12-20 a/c 206T813953623B 12-16 a/c 206T355724768B HARDWARE,AND ALLIED ITEMS RENTAL/LEASE EQUIPMENT RENTAL/LEASE EQUIPMENT RENTAL/LEASE EQUIPMENT 001-8080-576.31-20 001-8080-576.31-40 001-8080-576.42-12 001-8080-576.42-12 001-8080-576.42-12 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.48-10 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.48-10 001-8080-576.31-01 001-8080-576.31-01 001-8080-576.31-01 001-8080-576.31-01 001-8080-576.31-20 001-8080-576.42-10 001-8080-576.42-10 001-8080-576.35-01 001-8080-576.31-01 001-8080-576.31-01 001-8080-576.31-01 FASTENERS, FASTENING DEVS 001-8080-576.31-20 HAND TOOLS ,POW&NON POWEF001-8080-576.31-20 HAND TOOLS ,POW&NON POWEF001-8080-578.31-20 HAND TOOLS ,POW&NON POWEF001-8080-576.31-20 FASTENERS, FASTENING DEVS 001-8080-576.31-20 HAND TOOLS ,POW&NON POWEF001-8080-576.31-20 PAINTS,COATINGS,WALLPAPER 001-8080-576.31-20 HARDWARE,AND ALLIED ITEMS ELECTRICAL CABLES & WIRES HARDWARE,AND ALLIED ITEMS LAWN MAINTENANCE EQUIP FASTENERS, FASTENING DEVS HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS 57 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 001-8080-576.31-20 Invoice Amount 26.03 109.75 20.04 104.86 37.91 172.00 172.00 172.00 129.96 136.78 18.89 156.82 39.70 11.61 172.61 17.66 16.85 179.44 167.87 63.89 53.39 57.40 54.13 17.06 17.06 17.06 4.33 54.21 58.03 25.96 28.61 6.63 37.01 35.99 9.86 19.67 9.17 2.89 20.38 0.60 1.73 52.23 Page 9 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/21/05 Vendor SWAIN'S GENERAL STORE INC... TAYLOR-SPARKS REFRIGERATION INC TELECOM LABS iNC THURMAN SUPPLY THYSSENKRUPP ELEVATOR CORP WASHINGTON (DIS), STATE OF XEROX CORPORATION Parks & Recreation AMSAN OLYMPIC SUPPLY CED/CONSOLIDATED ELEC DIST INC ORKIN EXTERMINATING COMPANY INC QWEST SWAIN'S GENERAL STORE INC XEROX CORPORATION Parks & Rec-Maintenance LAB SAFETY SUPPLY INC USA BLUEBOOK AIRPORT GARDEN CENTER ANGELES MILLWORK & LUMBER CO Description Account Number ELECTRICAL EQUIP & SUPPLY 001-8080-576.31-20 PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 HARDWARE,AND ALLIED ITEMS 001-8080-576.31-20 JANITORIAL SUPPLIES 001-8080-576.31-20 HAND TOOLS ,POW&NON POWEF001-8080-576.31-20 HARDWARE,AND ALLIED ITEMS 001-8080-576.31-20 JANITORIAL SUPPLIES REFRIGERATION EQUIPMENT Maintenance-February PIPE FI'FrlNGS December lease BUILDING MAINT&REPAIR SER Scan chgs-December RENTAL/LEASE EQUIPMENT Park Facilities Parks & Recreation JANITORIAL SUPPLIES JANITORIAL SUPPLIES JANITORIAL SUPPLIES JANITORIAL SUPPLIES JANITORIAL SUPPLIES JANITORIAL SUPPLIES 001-8080-576.31-20 001-8080-576.48-10 001-8080-576.42-10 001-8080-576.31-20 001-8080-576.45-30 001-8080-576.45-30 001-8080-576.42-10 001-8080-576.45-30 Division Totah Depa~ment Torah 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.31-20 MACHINERY & HEAVY HRDWARE 001-8130-518.31-20 Vacuum Vacuum ELECTRICAL EQUIP & SUPPLY POISONS:AGRICUL & INDUSTR 01-02 a/c 3604175328784B 01-02 a/c 3604170786905B HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS RENTAL/LEASE EQUIPMENT Custodial/Janitorial Svcs Parks & Rec-Maintenance General Fund FIRST AID & SAFETY EQUIP. HOSES, ALL KINDS FEED,BE DDING,VIT-ANIMALS FEED,BEDDING,VIT-ANIMALS 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.41-50 001-8130-518.42-10 001-8130-518.42-10 001-8130-518.31-20 001-8130-518.31-20 001-8130-518.45-30 Division Torah Depa~ment Total: Fund Totah 102-0000-237.00-00 102-0000-237.00-00 Division Total: Depa~ment Total: 102-7230-542.31-20 102-7230-542.31-20 MACHINERY & HEAVY HRDWARE 102-7230-542.31-20 58 Invoice Amount 4.62 3.11 25.71 10.77 37.76 42.32 15.00 9,590.02 7.78 33.53 189.53 379.05 4.04 68.20 $14,931.89 $t9,081.83 -11.21 83.14 29.84 5.84 61.62 519.14 668.75 668.75 -668.75 51.03 57.40 39.97 0.13 18.47 11.82 68.19 $t,604.13 $t,604.t3 $99,938.t2 -15.73 -13.21 -$28.94 -$28.94 16.25 43.32 77.43 Page 10 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/2'1/05 Date: 1/24/05 Vendor ANGELES MILLWORK & LUMBER CO... BLAKE SAND & GRAVEL INC CAPACITY PROVISIONING INC HARTNAGEL BUILDING SUPPLY INC HERMANN BROS LOGGING & CONST L & L TOOL SPECIALTIES LAB SAFETY SUPPLY INC LAKESIDE INDUSTRIES INC MIDDLETON AUTO AND TRUCK INC OLYMPIC STATIONERS INC PACIFIC OFFICE FURNITURE SANDERSON SAFETY SUPPLY CO SHOTWELL CORP, JONATHAN SUNSET DO-IT BEST HARDWARE Description SUPPLIES FIRST AID & SAFETY EQUIP. LAUNDRY TEXTILES& SUPPLIS SUPPLIES Account Number 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 LUMBER& RELATED PRODUCTS 102-7230-542.31-20 HAND TOOLS ,POW&NON POWEF 102-7230-542.31-20 HAND TOOLS ,POW&NON POWEF 102-7230-542.31-20 FASTENERS, FASTENING DEVS 102-7230-542.31-20 FASTENERS, FASTENING DEVS 102-7230-542.31-20 LUMBER& RELATED PRODUCTS 102-7230-542.31-20 SUPPLIES 102-7230-542.31-25 HAND TOOLS ,POW&NON POWEF 102-7230-542.48-10 FIRST AID & SAFETY EQUIP. SUPPLIES METALS,BARS,PLATES,RODS ROAD/HIGHWAY EQUIPMENT BUILDER'S SUPPLIES CONCRETE & METAL CULVERTS INET Svcs Jan-Corp Yard ELECTRICAL EQUIP & SUPPLY SUPPLIES 102-7230-542.48-10 102-7230-542.48-10 102-7230-542.31-20 102-7230-542.31-20 102-7230-542,31-20 102-7230-542.31-20 102-7230-542.42-12 102-7230-542.48-10 102-7230-542.31-20 HAND TOOLS ,POW&NON POWEF 102-7230-542.31-20 AUTO & TRUCK MAINT. ITEMS FIRST AID & SAFETY EQUIP. ROAD/HWY MATERIALS ASPHLT ROAD/HWY MATERIALS ASPHLT ROAD/HWY MATERIALS ASPHLT ROAD/HWY MATERIALS ASPHLT FUEL,OIL,GREASE, & LUBES SUPPLIES SALE SURPLUS/OBSOLETE CLOTHING ACCESSORIES(SEE ROAD/HWY MAT NONASPHALTIC FASTENERS, FASTENING DEVS SUPPLIES SUPPLIES SUPPLIES SUPPLIES SUPPLIES AUTO & TRUCK MAINT. ITEMS SUPPLIES SUPPLIES 59 102-7230-542.35-01 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-01 102-7230-542.31-01 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 Invoice Amount 8.16 16.72 3.30 29.17 20.34 4.O7 3.25 0.93 4.31 10.55 161.74 7.57 24.82 158.76 5.46 108.08 13.21 105.38 172.00 6.80 15.00 37.80 61.71 205.22 579.45 192.23 105.07 104.24 8.43 63.59 447.28 116.49 259.92 118.27 3.35 25.53 1.06 4.25 15.15 4.81 24.54 29.23 Page 11 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Date: 1/24/05 Vendor SUNSET DO-IT BEST HARDWARE... SWAIN'S GENERAL STORE INC TELECOM LABS INC THURMAN SUPPLY USA BLUEBOOK VERIZON WIRELESS WASHINGTON (DIS), STATE OF Public Works-Street CLALLAM CNTY BOUNDARY PENINSULA DALLY NEWS TELECOM LABS INC WASHINGTON (DIS), STATE OF Economic Development Description SUPPLIES SUPPLIES SUPPLIES SUPPLIES SUPPLIES Account Number 102-7230-542.31-20 102-7230-542.48-10 102-7230-542.48-10 102-7230-542.48-10 102-7230-542.48-10 CAPTAIN T'S CLALLAM CNTY INFORMATION TECHNOL Software purchases NEW WORLD SYSTEMS Conviction Data Report NORTHPOINT CONSULTING INC OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC QWEST TELECOM LABS INC WASHINGTON (DIS), STATE OF WClA (WA CITIES INS AUTHORITY} Pencom HAND TOOLS ,POW&NON POWEF 102-7230-542.31-20 OLYMPIC STATIONERS INC Recreation Activities BUILDER'S SUPPLIES TAPE(NOT DP,SOUND,VIDEO) SUPPLIES Maintenance-February SUPPLIES HOSES, ALL KINDS 01-06 a/c 26470706000002 Scan chgs-December Street Public Works-Street Street Fund Filing fee-UGA Annexation Director job ad Maintenance-February Scan chgs-December Economic Development Economic Development Economic Development Shirts,logos 7.0 Upgrade Network configuration COPY PAPER COPY PAPER Toner cartridges 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.31-20 102-7230-542.42-10 102-7230-542.48-10 102-7230-542.31-20 102-7230-542.42-10 102-7230-542.42-10 Division Totah Department Torah Fund Torah 103-1511-558.41-50 103-1511-558.44-10 103-1511-558.42-10 103-1511-558.42-10 Division Totah Depa~ment Total: Fund Total: 107-5160-528.20-80 107-5160-528.48-10 107-5160-528.48-10 107-5160-528.48-10 107-5160-528.48-10 107-5160-528.31-01 107-5160-528.31-01 107-5160-528.31-01 107-5160-528.42-11 107-5160-528.42-10 107-5160-528.42-10 107-5160-528.46-10 Division Totah Department Total: Fund Totah 174-8221-574.31-01 174-8221-574.31-01 Division Totah 01-02 a/c 360Z020380301 B Maintenance-February Scan chgs~December Liability Insurance-2005 Pencom Pencom Pencom Fund COPY PAPER COPY PAPER Sports Pr~q~ms invoice Amount 25.71 8.10 2.00 56.70 5.18 44.85 11.27 8.03 10.58 23.34 141.16 172.33 12.65 0.73 $3,946.87 $3,946.87 $3,917.93 50.00 96.88 7.78 1.25 $155.91 $t55.91 $155.91 103.97 516.49 541.50 1,08300 2,240.00 87.72 87.72 276.80 7,198.69 132.24 30.70 18,577.00 $30,875.83 $30,875.83 $30,875.83 43.87 43.86 $87.73 Page 12 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Date: 1/24/05 Vendor ABREU, JOHN BAKER, LARRY BUCKMASTER, KAITLIN BURKE, BENJAMIN DEFRANG, FRED W FARRINGTON, DAVID GILCHRIST, JOSHUA HALBERG, JAMES G HELPENSTELL, BROOKE HOLLOWAY, MICHAEL JOHNSON, STEPHEN KETCHUM III, JOHN W LEINART, TOM MCHONE, RANDY MINOR, ELISABETH PARTY OUTFITTERS INC PIMENTEL, HENRY RINEHART INC, WILLIAM E ROBINSON, JASON ROONEY, RANDY L SATHER, RONALD L STONE, RICHARD SWAIN'S GENERAL STORE INC THAYER, JEFFREY ULIN, BRADLEY V WILSON, DONALD L Recreation Activities ALBERTSONS INC AMSAN OLYMPIC SUPPLY AT&T WIRELESS (DIGITAL) JPMORGANCHASE Judy Perszyk Sharon Holland PORT ANGELES CITY TREASURER SWAIN'S GENERAL STORE INC Recreation Activities BLAKE SAND & GRAVEL INC Waterfront Trail Description REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT DEP FOR FAMILY FUN DAY REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT BASKETBALL AWARDS REFEREE PAYMENT REFEREE PAYMENT REFEREE PAYMENT Special Events SUPPLIES SPECIAL EVENT SUPPLIES 12-27 a/c 0038436241 Table RFD WINTER BREAK RFD FOR CANCELLED PROG Rfd Fun Factory Winter break-Lowe SUPPLIES FOODS: STAPLE GROCERY Youth/Family Programs Recreation Activities Park & Recreation Fund BUILDER'S SUPPLIES Waterfront Trail 61 Account Number Invoice Amount 174-8222-574.41-50 200.00 174-8222-574.41-50 140.00 174-8222-574.41-50 140.00 174-8222-574.41-50 140.00 174-8222-574.41-50 180.00 174-8222-574.41-50 40.00 174-8222-574.41-50 150.00 174-8222-574.41-50 160.00 174-8222-574.41-50 120.00 174-8222-574.41-50 200.00 174-8222-574.41-50 300.00 174-8222-574.41-50 120.00 174-8222-574.41-50 100.00 174-8222-574.41-50 220.00 174-8222-574.41-50 110.00 174-8222-574.41-50 2,747.50 174-8222-574.41-50 100.00 174-8222-574.41-50 60.00 174-8222-574.41-50 70.00 174-8222-574.41-50 240.00 174-8222-574.41-50 80.00 174-8222-574.41-50 240.00 174-8222-574.31-01 51.72 174-8222-574.41-50 200.00 174~8222-574.41-50 240.00 174-8222-574.41-50 180.00 Division Totak $6,529.22 174-8224-574.31-01 17.49 174-8224-574.31-01 16.85 174-8224-574.42-10 31.22 174-8224-574.31-01 236.01 174-8224-347.60-20 120.00 174-8224-347.60-20 15.00 174-8224-347.60-20 30.00 174-8224-574.31-01 4.10 174-8224-574.31-01 2.89 174-8224-574.31-01 5.78 Division Totah $479.34 Depa~ment Torah $7,096.29 Fund Totah $7,096.29 186-8576-576.34-01 37.27 Division Totak $37.27 Page 13  Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: I/8/05 To: I/2~/05 Vendor Description Account Number Invoice Amount Waterfront Trail Department Total: $37.27 Waterfront Trail Fund Total: $37.27 Prof svcs pe 12-2004 310-7919-594.41-50 3,006.00 GP-Pub Wks Projects Division Total: $3,006.00 Capital Projects-Pub Wks Department Total: $3,006.00 ARCHITECT&OTHER DESIGN 310-8985-594.65-10 810.00 Misc Parks Projects Division Total: $810.00 Capital Proj-Parks & Rec Department Total: $810.00 Capital Improvement Fund Total: $3,816.0n 314-3920-518.41-50 541.50 314-3920-518.41-50 3,249.00 Division Total: $3,790.50 Department Total: $3,790.60 Fund Total: $3,790.50 18.95 4,602.75 $4,621.70 $4,621.70 $4,621.7C 23,661.48 6,531.80 86,440.19 $116,633.47 $116,633.47 $116,633.47 17,846.23 147.48 84.86 93.96 250.00 192.44 20.40 43.00 147.42 250.00 70.58 100.05 51.61 188.51 750.47 4,873.10 REID MIDDLETON INC Capital Projects-Pub Wks LINDBERG & SMITH ARCHITECTS INC Capital Proj-Parks & Rec ASSURED QUALITY ENVIRONMENTAL IN(Asbestos abatement MORRISON EXCAVATING INC Demolish 5th St Bldg Capital Projects-Attny Property Management Capital Projects-Attny Property Management Fund BLAKE SAND & GRAVEL INC KUCHAN CONSTRUCTION CO INC Capital Proj-Parks & Rec EXELTECH CONSULTING INC Capital Projects-Pub Wks BONNEVILLE POWER ADMIN ANDERSON HOMES ATHERTON, MARK BICK, JEANNE BROWNWELL, DAVID CANTVVELL, TIMOTHY DESHA, MINDY FRISK, NICOLUS MASTER, BRIAN PETTIT OIL CO WALLER, JAMES WATKINS, SOUL % PCMHC NORTH COAST ELECTRIC COMPANY ROAD/HWY MAT NONASPHALTIC 316-8982-594.65-10 CONSTRUCTION SERVICES,GEN 316-8982-594.65-10 Lincoln Park Improvmt Capital Proj-Parks & Rec Lincoln Park Improvement Prof svcs-December Prof svcs-December Prof svcs-December 8th St Bridge Reconst Capital Projects-Pub Wks 6th St Bridge Reconstr Energy Conservation loans OVERPAYMENT-II1 E 7TH A OVERPAYMENT-4509 OLD MILL OVERPAYMENT-II1 E 7TH B DEPOSIT REFUND UB CR REFUND-FINALS OVERPAYMENT-122 W 2ND ST OVERPAYMENT-2215 S CHASE UB CR REFUND-FINALS DEPOSIT REFUND UB CR REFUND-FINALS OVERPAYMENT-422 S VALLEY UB CR REFUND-FINALS UB CR REFUND-FINALS ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY 62 Division Total: Department Total: Fund Total: 328-7950-595.41-50 328-7950-595.41-50 328-7950-595.41-50 Division Total: Department Total: Fund Total: 401-0000-231.90-00 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-141.40-00 401-0000-141.40-00 Page 14 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor NORTH COAST ELECTRIC COMPANY... PLATt ELECTRIC SUPPLY INC CAPACITY PROVISIONING INC COMPLETE LINE, THE Public Works-Electric CAPACITY PROVISIONING INC ENERGY NEWS DATA MARSH MUNDORF pRATi' SULLIVAN PUD #1 OF CLALLAM COUNTY Public Works-Electric AMSAN OLYMPIC SUPPLY ANGELES MILLWORK & LUMBER CO BAXTER AUTO PARTS #15 BLAKE SAND & GRAVEL INC CAPACITY PROVISIONING INC DIVERSIFIED RESOURCES EES CONSULTING INC GRAYBAR ELECTRIC CO INC GREAT AMERICAN LEASING CORP HARTNAGEL BUILDING SUPPLY INC JACO ANALYTICAL LABORATORY INC JPMORGANCHASE VERN DAUGAARD NORTH COAST ELECTRIC COMPANY Description ELECTRICAL EQUIP & SUPPLY ELECTRICAL CABLES & WIRES INET Svcs Jan-LT Eng Printer cartridges Printer cartridges Toner SUPPLIES SUPPLIES Engineering-Electric INET Svcs Jan-LT Resource RENEWAL NEWS SERVICE WPAG 2004 pe 12-29 12~29 2110 Glass Rd Power Resource Mgmt PAPER & PLASTIC-DISPOSABL PAPER & PLASTIC-DISPOSABL LUMBER& RELATED PRODUCTS LUMBER& RELATED PRODUCTS ENGINEERING EQUIPMENT AUTO SHOP EQUIPMENT & SUP BRUSHES (NOT CLASSIFIED) AIR COMPRESSORS & ACCESS AUTO & TRUCK MAINT. ITEMS Account Number 401-0000-141.40-00 401-0000-141.40-00 Division Total: Department Total: 401-7111-533.42-12 401-7111-533.31-01 401-7111-533,31-01 401-7111-533.31-01 401-7111-533.31-01 401-7111-533.31-01 Division Total: 401-7120-533,42-12 401-7120-533.49-01 401-7120-533.49-01 401-7120-533.49-01 401-7120-533.33-50 Division Total: 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533,48-10 401-7180-533.48-10 401-7180-533.31-20 401-7180-533.35-01 401-7180-533,48-10 401-7180-533.48-10 HAND TOOLS .POW&NON POWEF401-7180-533.35-01 BUILDER'S SUPPLIES Gravel INET Svcs Jan-LT Division Janitorial svcs-December Prof svcs-December Lexan photo control JAN COPIER LEASE BUILDER'S SUPPLIES BUILDER'S SUPPLIES SAMPLING&SAMPLE PREPARATI Shoulder rest Reimb boot allowance 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.42-12 401-7180-533.48-10 401-7180-533.49-01 401-7180-533.48-10 401-7180-533.45-30 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.31-01 401-7180-533.31-11 HAND TOOLS ,POW&NON POWEF401-7180-533.35-01 Saws for crews 401-7180-533.35-01 ELECTRICAL EQUIP & SUPPLY 401-7180-533.48-10 63 Invoice Amount 260.64 964.04 $26,334.79 $26,334.79 265.86 859.38 148.27 379.92 198.80 65~28 $t,917.51 265.86 794.24 4,896.00 558.22 180.17 $6,694.49 145.97 51.91 19.04 258.62 5.85 34.54 22.39 23.36 1.20 102.89 11.67 394.21 2,126.89 96.00 535.47 18.93 186.49 38.59 -8.99 223.52 16.88 85.53 309.73 68.52 133.32 Page 15 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor NORTH COAST ELECTRIC COMPANY... OLYMPIC LAUNDRY & DRY CLEANERS OLYMPIC STATIONERS INC PACIFIC OFFICE FURNITURE PENINSULA DALLY NEWS PLA'Fr ELECTRIC SUPPLY INC PORT ANGELES CITY TREASURER PORT ANGELES POWER EQUIPMENT QWEST RADIOSHACK SEARS COMMERCIAL ONE SNAP-ON TOOLS - CHUGGER DEANE SUNSET DO-IT BEST HARDWARE SWAIN'S GENERAL STORE INC TELECOM LABS INC UNITED PARCEL SERVICE VERIZON WIRELESS Description ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL CABLES & WIRES ELECTRICAL CABLES & WIRES ELECTRICAL CABLES & WIRES ELECTRICAL EQUIP & SUPPLY ELECTRICAL CABLES & WIRES ELECTRICAL EQUIP & SUPPLY JANITORIAL SUPPLIES JANITORIAL SUPPLIES OFFICE SUPPLIES FURNITURE, OFFICE 2 CHAIRS TO REPLACE OLD O Lineman job ad ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY Account Number 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.31-20 401-7180-533.31-20 401-7180-533.31-01 401-7180-533.31-20 401-7180-533.48-10 401-7180-533.44-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 HAND TOOLS ,POW&NON POWEF401-7180-533.48-10 6 Callout meals 401-7180-533.43-10 Filing fees-Rinehart 401-7180-533.49-90 MACHINERY & HEAVY HRDWARE 401-7180-533.35-01 AUTO SHOP EQUIPMENT & SUP 401-7180-533.35-01 01-02 a/c 206z0204119428 ELECTRONIC COMPONENTS AUTO & TRUCK MAINT. ITEMS TOOLS FOR LINE CREW USE 401-7180-533.42-10 401-7180-533,48-10 401-7180-533.35-01 401-7180-533.35-01 HAND TOOLS ,POW&NON POWEF401-7180-533.35-01 HAND TOOLS ,POW&NON POWEF401-7180-533.35-01 AIR COMPRESSORS & ACCESS WELDING EQUIPMENT/SUPPLY PLUMBING EQUIP FIXT,SUPP ELECTRICAL EQUIP & SUPPLY GASES CONT.EQUIP:LAB,WELD ELECTRICAL EQUIP & SUPPLY PLASMA CUTTER HARDWARE,AND ALLIED ITEMS HARDWARE,AND ALLIED ITEMS Maintenance-February Shipping chgs-December 01-04 a/c 87025110300001 64 401-7180-533.35-01 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-533.48-10 401-7180-594.64-10 401-7180-533.31-20 401-7180-533.48-10 401-7180-533.42-10 401-7180-533.42-10 401-7180-533.42-10 Invoice Amount 116.42 50.01 84.21 357.62 889.67 193.63 132.44 1,067.57 189.71 26.06 26.06 44.45 257.75 106.13 48.44 66.56 124.44 81.80 170.46 72.96 129.00 39.00 32.46 59.54 64.98 31.08 266.39 798.97 101.79 79.90 194.93 12.99 19.19 20.75 5.12 28.59 1,039.68 22.98 33.56 108.90 5.16 74.45 Page 16 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor VERIZON WIRELESS... WASHINGTON (DIS), STATE OF Public Works-Electric AMERICAN WATER WORKS ASSN FEI EVERETT 3023 FOWLER COMPANY, H D AMERICAN WATER WORKS ASSN AMSAN OLYMPIC SUPPLY ANGELES CONCRETEPRODUCTS ANGELES MACHINE WORKS INC ANGELES MILLWORK & LUMBER CO BLAKE SAND & GRAVEL INC CAPACITY PROVISIONING INC DIVERSIFIED RESOURCES FOWLER COMPANY, H D KEATING BUCKLIN & MCCORMACK INC OLYMPIC LAUNDRY & DRY CLEANERS OLYMPIC STATIONERS INC PACIFIC OFFICE EQUIPMENT INC PORS A3-rY AT LAW, THOMAS M PORT ANGELES CITY TREASURER SEARS COMMERCIAL ONE SNAP-ON TOOLS - CHUGGER DEANE SUNSET DO-IT BEST HARDWARE Description 01-04 a/c 87025112400001 Scan chgs-December Electric Operations Public Works-Electric Electric Utility Fund SCHOOL EQUIP& SUPPLIES PIPE FITTINGS PIPE AND TUBING SCHOOL EQUIP& SUPPLIES Account Number 401-7180-533.42-10 401-7180-533.42-10 Division Total: Department Total: Fund Total: 402-0000-237.00-00 402-0000-141.40-00 402-0000-141.40-00 Division Total: Department Total: 402-7380-534.31-01 WATER&SEWER TREATING CHEM,02-7380-534.31-05 WATER&SEWER TREATING CHEryl02-7380-534.31-05 Crush rock Control density fill Control density fill Control density fill SUPPLIES SUPPLIES BUILDING MAINT&REPAIR SER CONCRETE & METAL CULVERTS INET Svcs Jan-Water Div Janitorial svcs-December SUPPLIES Prof svcs pe 12-06 RAGS,SHOP TOWELS,WIPING OFFICE SUPPLIES, GENERAL ENVELOPES, PLAIN, PRINTED COMPUTERS,DP & WORD PROC. Prof svcs Dec 2004 Spare key-Brockopp Postage-Beverford Reimburse CDL-Baar SUPPLIES SUPPLIES SUPPLIES FIRST AID & SAFETY EQUIP. 402-7380-534.34-02 402-7380-534.34-02 402-7380-534.34-02 402-7380-534.34-02 402-7380-534.48-10 402-7380-534.34-02 402-7380-534.34-02 402-7380-534.34-02 402-7380-534.42-12 402-7380-534.48-10 402-7380-534.34-02 402-7380-534.41-50 402-7380-534.34-02 402-7380-534.31-01 402-7380-534.31-01 402-7380-534.31-01 402-7380-534.41-50 402-7380-534.31-20 402-7380-534.42-10 402-7380-534.49-01 402-7380-534.35-01 402-7380-534.35-01 402-7380-534.35-01 402-7380-534.31-20 HAND TOOLS ,POW&NON POWEF402-7380-534.31-20 PIPE FITTINGS 402-7380-534.34-02 PIPE FITTINGS 402-7380-534.34-02 PIPE FITTINGS 402-7380-534.34-02 HAND TOOLS ,POW&NON POWEF402-7380-534.34-02 Invoice Amount 74.57 32.19 $12,285.09 $20,897.09 $47,231.88 -3.74 2,111.85 325~80 $2,433.91 $2,433.91 48.74 197.81 197.81 5,920.90 157.04 157.04 178.70 15.76 6.50 15.14 16.25 356.82 26.00 13,030.92 1,574.70 17.33 24.45 5.05 212.27 3,264.00 4.52 28.58 30.00 133.14 43.29 244.70 8.65 4.08 20.36 0.77 9.00 8.18 Page 17 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Date: 1/24105 Vendor SWAIN'S GENERAL STORE INC TELECOM LABS INC THURMAN SUPPLY UTILITIES UNDERGROUND LOC CTR WASHINGTON (DIS), STATE OF WHISTLE WORKWEAR Public Works-Water AMSAN OLYMPIC SUPPLY ANGELES MILLWORK & LUMBER CO BAXTER AUTO PARTS #15 CAPACITY PROVISIONING INC CDW GOVERNMENT INC JPMORGANCHASE LINCOLN INDUSTRIAL CORP METROCALL OLYMPIC ELECTRIC CO INC OLYMPIC REGION CLEAN AIR AGCY OLYMPIC SPRINGS INC OLYMPIC STATIONERS INC PETTIT OIL COMPANY PORT ANGELES CITY TREASURER QWEST SNAP-ON TOOLS - CHUGGER DEANE SUNSET DO-IT BEST HARDWARE Description FIRST AID & SAFETY EQUIP. FIRST AID & SAFETY EQUIP. HARDWARE,AND ALLIED ITEMS Maintenance-February SUPPLIES December locates COMPUTERS,DP & WORD PROC. Scan chgs-December FIRST AID & SAFETY EQUIP. Water Public Works-Water Water Fund PAPER & PLASTIC-DISPOSABL SUPPLIES BELTS AND BELTING SUPPLIES INET Svcs Jan-WW Division RADIO & TELECOMMUNICATION Gloves SUPPLIES 01-01 A/C 298-A24878 Valve controls FIELD PURCHASE ORDER FIELD PURCHASE ORDER FOODS: PERISHABLE PAPER & PLASTIC-DISPOSABL FOODS: PERISHABLE SUPPLIES SUPPLIES FUEL,OIL,GREASE, & LUBES FUEL,OIL,GREASE, & LUBES Batteries-Young Safety lunch-Young 01-02 a/c 3604170591195B 01-02 a/c 3604170190080B 01-08 a/c 3605650365696B Account Number Invoice Amount 402-7380-534.31-20 68.92 402-7380-534.31-20 259.47 402-7380-534.34-02 0.97 402-7380-534.42-10 7.78 402-7380-534.34-02 120.35 402-7380-534.48-10 18.70 402-7380-534.31-60 151.10 402-7380-534.42-10 4.76 402-7380-534.31-20 249.16 Division Total: $26,839.71 Department Total: $26,839.71 Fund Total: $29,273.62 403-7480-535.31-20 289.05 403-7480-535.31-20 1.08 403-7480-535.31-20 18.89 403-7480-535.35-01 39.20 403-7480-535.42-12 654.18 403-7480-535.42-10 2,036.39 403-7480-535.31-20 161.14 403-7480-535.31-20 14.13 403-7480-535.42-10 40.64 403-7480-535.48-10 2,233.74 403-7480-535.31-20 200.00 403-7480-535.31-20 142.76 403-7480-535.31-20 25.45 403-7480-535.31-20 7.13 403-7480-535.31-20 12.50 403-7480-535.31-01 151.10 403-7480-535.31-01 62.16 403-7480-535.32-11 760.87 403-7480-535.32-11 925.12 403-7480-535.31-20 10.83 403-7480-535.43-10 48.45 403-7480-535.42-10 37.31 403-7480-535.42-10 37.63 403-7480-535.42-10 37.31 980.70 22.56 1.16 7.35 13.73 10.58 HAND TOOLS ,POW&NON POWEF403-7480-535.35-01 SUPPLIES 403-7480-535.31-20 SUPPLIES 403-7480-535.31-20 SUPPLIES 403-7480-535.31-20 SUPPLIES 403-7480-535.31-20 SUPPLIES 403-7480-535.31-20 66 Page 18 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor SUNSET DO-IT BEST HARDWARE,., SWAIN'S GENERAL STORE INC TELECOM LABS INC TRIANGLE PUMP AND EQUIPMNT INC UNIVAR USA INC UTILITIES UNDERGROUND LOC CTR WASHINGTON (AGRICUL), STATE OF WASHINGTON (DIS), STATE OF WSU-CAHE CASHIER Public Works-WW/Stormwtr CAPACITY PROVISIONING INC DIVERSIFIED RESOURCES OLYMPIC STATIONERS INC RADIO PACIFIC INC SUNSET DO-IT BEST HARDWARE SWAIN'S GENERAL STORE INC TELECOM LABS INC WASHINGTON (DIS), STATE OF WASTE MANAGEMENT WORC-WA ORGANIC RECYCLING CNCL Public Works-Solid Waste CAROLINA SOFTWARE JPMORGANCHASE RESOURCEFUL BAG & TAG INC AMSAN OLYMPIC SUPPLY ANGELES CONCRETE PRODUCTS CAPACITY PROVISIONING INC Description SUPPLIES SUPPLIES SUPPLIES SUPPLIES SUPPLIES SUPPLIES FIRST AID & SAFETY EQUIP. Maintenance-February Account Number 403-7480-535.31-20 403-7480-535.31-20 403-7480-535.31-20 403-7480-535.35-01 403-7480-535.31-20 403-7480-535.31-20 403-7480-535.31-20 403-7480-535.42-10 BOATS,MOTORS,& MARINE SUP 403-7480-535.31-20 WATER&SEWER TREATING CHEM,03-7480-535.31-20 December locates SUPPLIES Scan chgs-December PEST.RECERT.-DIVELBISS Wastewater Public Works-WW/Stormwtr Wastewater Fund INET Svcs Jan-SW Corp Yd Janitorial svcs-December SUPPLIES OFFICE SUPPLIES Credit office supplies SUPPLIES Trash Talk ads-December EQUIP MAINT & REPAIR SERV AUTO SHOP EQUIPMENT & SUP AUTO & TRUCK MAINT. ITEMS Maintenance-February Scan chgs-December December Recycle WORC-DUES Solid Waste-Collections Public Works-Solid Waste Solid Waste-Collections SUPPORT AND MAINTENANCE Software SUPPLIES PAPER & PLASTIC-DISPOSABL Recycled concrete INET Svcs Jan-SW Lar~dfill O7 403-7480-535.41~50 403-7480-535.49-01 403-7480-535.42-10 403-7480-535.43-10 Division Totah Depa~mentTotah Fund Total: 404-7580-537.42-12 404-7580-537.48-10 404-7580-537.31-01 404-7580-537.31-01 404-7580-537.31-01 404-7580-537.31-01 404-7580-537.44-10 404-7580-537.35-01 404-7580-537.35-01 404-7580-537.35-01 404-7580-537.42-10 404-7580-537.42-10 404-7580-537.41-50 404-7580-537.49-01 Division Totah Depa~mentTotal: Fund Totah 405-0000-237.00-00 405-0000-237.00-00 405-0000-237.00-00 Division Totah Depa~mentTotal: 405-7585-537.31-20 405-7585-537.31-20 405-7585-537.42-12 Invoice Amount 1.06 10.79 2.99 100.29 7.73 27.09 64.87 15.56 189.35 1,705.80 18.70 25.00 21.86 80.00 $11,254.23 $11,254.23 $11,254.23 187.00 19.00 91.93 27.30 -2.17 9.69 433.00 38.45 52.54 3.76 38.89 11.38 44,192.27 125.00 $45,228.04 $45,228.04 $45,228.04 -16.60 -73.48 -20.75 -$110.83 -$110.83 232.85 319.92 187.00 Page 19 City of Port Angeles City Council Expenditure Report Prom: 1/8/05 To: 1/21/05 Da~:1~4~5 Vendor CAROLINA SOFT~VARE CLALLAMCNTYDEPT OF HEALTH DIVERSIFIED RESOURCES ENGINEERED COMPOST SYSTEMS HD~EESlNC JPMORGANCHASE KAESERANDBLAIRINC OLYMPIC ELECTRIC CO INC OVERALL LAUNDRY SERVICES INC PACIFIC OFFICE EQUIPMENT INC pE3-1'IT OIL COMPANY QWEST RESOURCEFUL BAG & TAG INC SANDERSON SAFETY SUPPLY CO SHOTWELL CORP, JONATHAN Public Works-Solid Waste AFFORDABLE COMPANY, THE GLASS SERVICES CO INC BRUCE O'ROURKE GLENN WAUGHAMAN JEFFREY GRULKOWSKI JOE & TERI MANGIAMELI LOVA JANE LUKENS Public Works-Electric POTELCO INC TICE ELECTRIC COMPANY Public Works-Electric CH2M HILL INC JPMORGANCHASE US BANK Description SUPPORT AND MAINTENANCE LANDFILL PERMIT RENEWAL Janitorial svcs-December EQUIPMENT MAINTENANCE,REC Prof svcs-November Scanner,office supplies Software Promo items-Home Show Promo items-Home Show 0 & M LEACHATE PUMPS Laundry svcs-December Account Number 405-7585-537.48-10 405-7585-537.49-90 405-7585-537.48-10 405-7585-537.48-10 405-7585-537.41-50 405-7585-537.31-20 405-7585-537.31-20 405-7585-537.44-10 405-7585-537.44-10 405-7585-537.48-10 405-7585-537.31-20 COMPUTER HARDWARE&PERIPH405-7585-537.31-20 OIL DRUM PUMP 01-02 a/c 3604175035758B 01-05 a/c 3604522245145B 01-05 a/c 3604528100532B SUPPLIES HEARING PROTECTION Crush rock Solid Waste-Landfill Public Works-Solid Waste Solid Waste-Landfill City rebate-Jay City rebate-Frisell City rebate City rebate City rebate City rebates City rebate Conservation Loans Public Works-Electric Conservation Loans/Grants Release retainage Release retainage Release retainage Electric Projects Public Works-Electric Electric Utility CIP Prof svcs pe 12-31 Prof svcs pe 12-31 Trolley Escrow 15355591997~8 405-7585-537.31-20 405-7585-537.42-10 405-7585-537.42-10 405-7585-537.42-10 405-7585-537.31-20 405-7585-537.31-20 405-7585-537.31-20 Division Totah Depa~mentTotal: Fund Totah 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 Division Total: Depa~mentTotal: Fund Totah 451~7188-594.65-10 451-7188-594.65-10 451-7188-594.65-10 Division Torah Depa~ment Total: Fund Total: 452-7388-594.41-50 452-7388-594.41-50 452-7388-594.31-01 452-7388-594.65-10 Invoice Amount 216.60 5,250.00 47.00 8,008.77 2,271.25 390.88 958.72 83.11 1,314.79 960.35 97.56 140.79 38.06 79.94 41.05 39.97 270.75 98.12 216.60 $21,264.08 $21,264.08 $21,153.2~ 381.15 364.21 25.00 50.00 50.00 3,000.00 50.00 $3,920.36 $3,920.36 $3,920.36 4,395.13 4,395.12 5,523.88 $14,314.13 $t4,314.13 $14,314.13 775.71 8,110.66 327.85 21,816.68 Page 20 Date: 1/24105 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor Public Works-Water GEOTIVITY INC NORTHWESTERN TERRITORIES INC SKILLINGS-CONNOLLY INC Public Works-WW/Stormwtr BAXTER AUTO PARTS #15 FLEET COUNSELOR SERVICES INC H & R PARTS & EQUIPMENT INC HElL ENVIRONMENTAL IND LTD MCMASTER-CARR SUPPLY CO MIDDLETON AUTO AND TRUCK INC SCHUCK'S AUTO PARTS SUNSET DO-IT BEST HARDWARE AMSAN OLYMPIC SUPPLY CAPACITY PROVISIONING INC COSTCO CREDIT CARD PMTS DENVER'S TIRE CO INC Description Water Projects Public Works-Water Water Utility CIP Prof svcs-November Prof svcs pe 12-30 Prof svcs pe 12-25 Wastewater Projects Public Works-WW/Stormwtr WasteWater Utility ClP AUTO & TRUCK MAINT. ITEMS FLEET CERT PROGRAM FEES AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS PAPER & PLASTIC-DISPOSABL AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS INET Svcs Jan-Equip Svcs Digital camera AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES AUTO & TRUCK MAINT. ITEMS EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES EXTERNAL LABOR ~VICES Account Number Invoice Amount Division Torah $31,030.90 Depa~ment Total: $31,030.90 Fund Torah $31,030.90 453-7488-594.48-10 3,145,37 453-7488-594.41-50 158.75 453-7488-594.41-50 526,57 Division Totah $3,830.69 Depa~ment Total: $3,830.69 Fund Total: $3,830.69 501-0000-141.40-00 10,35 501-0000-237,00-00 -186.75 501-0000-141.40-00 20.58 501-0000-237.00-00 4.73 501-0000-237.00-00 -156.14 501-0000-237.00-00 -28.10 501-0000-237.00-00 -6.07 501-0000-237.00-00 -3.82 501-0000-141.40-00 64.96 501-0000-141.40-00 116.83 501-0000-141.40-00 2.62 501-0000-141.40-00 28.43 Division Totah -$132.38 Depa~mentTotah -$132.38 501-7630-548,31-01 62.78 501-7630-548.31-01 -56,51 501-7630-548.34-02 390.71 501-7630-548.42-12 41.00 501-7630-548.31-01 270.74 501-7630-548.31-10 148.37 501-7630-548.34-02 10.83 501-7630-548.34-02 2.44 501-7630-548.34-02 2.44 501-7630-548.34-02 9.48 501-7630-548.34-02 121.30 501-7630-548.34-02 56.59 501-7630-548.34-02 72,83 501-7630-548.48-10 22,20 501-7630-548.48-10 34.66 501-7630-548.48-10 10.83 501-7630-548.48-10 28,15 501-7630-548.48-10 28.15 501-7630-548.48-10 45.48 Page 21 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/21/05 Vendor DENVER'S TIRE CO INC... DIVERSIFIED RESOURCES FLEET COUNSELOR SERVICES INC GREENTREE COMMUNICATIONS CO H & R PARTS & EQUIPMENT INC HElL ENVIRONMENTAL IND LTD LES SCHWAB TIRE CENTER (CITY) LINCOLN INDUSTRIAL CORP MCMASTER-CARR SUPPLY CO MIDDLETON AUTO AND TRUCK INC OVERALL LAUNDRY SERVICES INC PERRY'S TIRE FACTORY PE'CrlT OIL COMPANY Description EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES Janitorial svcs-December FLEET CERT PROGRAM FEES AUTO & TRUCK MAINT. ITEMS EXTERNAL LABOR SERVICES AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS EXTERNAL LABOR SERVICES AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS EXTERNAL LABOR SERVICES EXTERNAL LABOR SERVICES AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS Trailer part AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS Cardlock Dec-EQO045 Cardlock Dec-EQ0078 Cardlock Dec-EQO005 7O Account Number Invoice Amount 501-7630-548.48-10 32.49 501-7630-548.48-10 79.06 501-7630-548.48-10 79.06 501-7630-548.48-10 14.08 501-7630-548.48-10 42.24 501-7630-548.48-10 7.58 501-7630-548.48-10 47.00 501-7630-548.41-50 2,436.75 501-7630-548.34-02 1,775.04 501-7630-548.48-10 173.28 501-7630-548.34-02 258.80 501-7630-548.34-02 33.64 501-7630-548.34-02 16.63 501-7630-548.48-10 130.61 501-7630-548.34-02 -61.69 501-7630-548.34-02 2,037.35 501-7630-548.34-02 366.57 501-7630-548.31-10 166.89 501-7630-548.34-02 75.81 501-7630-548.48-10 24.91 501-7630-548.48-10 83.34 501-7630-548.48-10 83.34 501-7630-548.34-02 97.47 501-7630-548.35-01 79.15 501-7630-548.35-01 49.81 501-7630-548.34-02 21.72 501-7630-548.34-02 87.30 501-7630-548.34-02 27.59 501-7630-548.34-02 77.97 501-7630-548.34-02 26.82 501-7630-548.34-02 4.88 501-7630-548.34-02 4.72 501-7630-548.34-02 10.22 501-7630-548.34-02 -6.01 501-7630-548.34-02 69.53 501-7630-548.34-02 19.35 501-7630-648.31-11 166.35 501-7630-548.49-90 64.15 501-7630-548.34-02 1,474.50 501-7630-548.32-10 35.35 501-7630-548.32-10 36.88 501-7630-548.32-10 16.99 Page 22 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Date: 1/24/05 Vendor PE~I'IT OIL COMPANY... RICHMOND 2-WAY RADIO SIMPSON'S USED PARTS & TOWING SNAP-ON TOOLS - CHUGGER DEANE SUNSET DO-IT BEST HARDWARE Description Cardlock Dec-EQ0009 Cardlock Dec-EQ0015 Cardlock Dec-EQ0018 Cardlock Dec-EQ0027 Cardlock Dec-EQ0028 Cardlock Dec-EQ0029 Cardlock Dec-EQ0034 Cardlock Dec-EQ0035 Cardlock Dec-EQ0036 Cardlock Dec-EQ0041 Cardlock Dec-EQ0042 Cardlock Dec-EQ0044 Cardlock Dec-EQO045 Cardlock Dec-EQ0046 Cardlock Dec-EQ0047 Cardlock Dec-EQ0048 Cardlock Dec-EQ0053 Cardlock Dec-EQ0054 Cardlock Dec-EQ0065 Cardlock Dec-EQ0078 Cardlock Dec-EQ0082 Cardlock Dec-EQ0087 Cardlock Dec-EQ0088 Cardlock Dec-EQO089 Cardlock Dec-EQ0095 Cardlock Dec-EQ0096 Cardlock Dec-EQ0138 Cardlock Dec-EQ0163 Cardlock Dec-EQ4101 Cardlock Dec-EQ4102 Cardlock Dec-EQ4103 Cardlock Dec-EQ4105 Cardlock Dec-EQ4200 Cardlock Dec-EQ4201 Cardlock Dec-EQ4900 Cardlock Dec-EQ8989 Cardlock Dec-EQ0008 Account Number 501-7630-548,32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630~548,32-10 501-7630-548,32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548,32-10 501-7630-548,32-10 501-7630~548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548,32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-10 501-7630-548.32-11 SOUND SYSTEMS & ACCESSORY 501-7630-548.34-02 AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS 71 501-7630~548.34-02 501-7630-548.35-01 501-7630-548.34-02 501-7630-548.34-02 Invoice Amount 19.88 56.27 49.04 44.54 25.20 42.07 205.09 80.21 184.52 93.42 53.02 89.69 67.28 106.22 95.23 115.52 141.99 115.07 108.13 31.92 42.42 130.52 66.97 115.60 68.27 25.12 84.71 35.84 112.81 41.24 66.64 188.88 63.45 57.03 37.51 18.97 7.03 113.73 70.40 115.88 76.73 4.68 Page 23 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: I/8/05 To: 1/21/05 Vendor SUNSET DO-IT BEST HARDWARE... TELECOM LABS INC WASHINGTON (DIS), STATE OF Public Works-Equip Svcs JPMORGANCHASE CAPACITY PROVISIONING INC COSTCO CREDIT CARD PMTS CRYSTALTECH IBM CORPORATION INSIGHT PUBLIC SECTOR JPMORGANCHASE OLYMPIC STATIONERS INC PACIFIC OFFICE FURNITURE TELECOM LABS INC WASHINGTON (DIS), STATE OF Finance Department Alan Oman BARB MCFALL Barbara Filigno Description AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS EXTERNAL LABOR SERVICES Maintenance-February Scan chgs-December Equipment Services Public Works-Equip Svcs Equipment Services Books Computer equipment INET Svcs Jan-Access Office supplies Computer monitors ci.port-angeles.wa.us RENTAL OR LEASE SERVICES RENTAL OR LEASE SERVICES RENTAL OR LEASE SERVICES DATA PROC SERV &SOFTWARE DATA PROC SERV &SOFTWARE DATA PROC SERV &SOFTWARE Computer supplies Books Books Computer equipment Computer equipment Back up battery COPY PAPER ONE KEY FOR FILE CABINET Maintenance-February Scan chgs-December RENTAL/LEASE EQUIPMENT Information Technologies Finance Department Information Technology WELLNESS REIMBURSEMENT Reimb medical expense WELLNESS REIMBURSEMENT MEDICAL REIM BUR~i~ENT Account Number Invoice Amount 501-7630-548.34-02 4.29 501-7630-548.34-02 18.15 501-7630-548.34-02 48.71 501-7630-548.34-02 1.26 501-7630-548.48-10 5.42 501-7630-548.42-10 7.78 501-7630-548.42-10 8.01 Division Totah $14,932.36 Department Totah $14,932.35 Fund Total: $14,799.97 502-0000-237.00-00 -10.71 502-0000-237.00-00 -37.67 Division Totah -$48.38 Department Tota~ -$48.38 502-2081-518.42-10 500.00 502-2081-518.31-01 105.30 502-2081-518.31-60 3,725.44 502-2081-518,42-10 18.27 502-2081-594.64-10 849.75 502-2081-594.64-10 3,469.32 502-2081-594.64-10 416.12 502-2081-518.48-02 1,906.08 502-2081-518.48-02 29.50 502-2081-518.48-02 428.33 502-2081-518.31-01 654.12 502-2081-518.31-02 272.23 502-2081-518.31-02 23.00 502-2081-518.31-60 138.75 502-2081-518.31-60 1,387.41 502-2081-518.31-80 272.38 502-2081-518.31-01 43.86 502-2081-518.31-01 21.66 502-2081-518.42-10 23.34 502-2081-518.42-10 37.75 502-2081-518.48-02 645.61 Division Totak $14,968.22 Department Totak $14,968.22 Fund Totah $14,919.84 503-1631-517.41-51 250.00 503-1631-517.46-30 45.00 503-1631-517.41-51 83.50 503-1631-517.46-30 68.08 Page 24 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Date: 1/24/05 Vendor GERALD SWAYZE JIM HARPER Jake Patterson LANCE DOYLE LINDA REIDEL TRENIA FUNSTON Self Insurance HEALTHCARE MGMT ADMNSTRS INC Serf Insurance POSTER COMPLIANCE CENTER Serf Insurance DOROTHY HOPKINS EUGENE VOIGHT QWEST-CLAIMS WCIA (WA CITIES INS AUTHORITY) Serf Insurance OLYMPIC STATIONERS INC SWAIN'S GENERAL STORE INC TELECOM LABS INC UNITED PARCEL SERVICE WASHINGTON (DIS), STATE OF Esther Webster/Fine Arts AFLAC ASSOCIATION OF WASHINGTON CITIES DIMARTINO/WSCFF DISABILITY EMPLOYEES ASSOCIATION LEOFF OFFICE OF SUPPORT ENFORCEMENT PERS Description Reimb medical expenses Reimb medical expenses WELLNESS REIMBURSEMENT Wellness reimbursement Wellness reimbursement Wellness reimbursment Other Insurance Programs 01-11 Dental claims EFT Premium-January AMENDMENT PREP January premium Medical Benefits State and Federal posters Worker's Compensation Claim settlement Claim settlement Claim a/c WA BF315702 Claim a/c WA BF315764 LIABILITY/PROPT ASSESSMEN Excess Liability Ins-2004 Comp Liability Serf Insurance Self-Insurance Fund Cellowrap,tape Matte boards Hinges Paint supplies Maintenance-February Shipping chgs-December Scan chgs-December Esther Webster/Fine Arts Esther Webster/Fine Arts Esther Webster Fund JAN SUPP INS PF{EMIUMS Supp Life premium-Dec P/R Deductions pe 01-16 P/F{ Deductions pe 01-16 December contribution December contribution P/R Deductions pe 01-16 P/F{ Deductions pe 01-16 December contribution 73 Account Number Invoice Amount 503-1631-517.46-30 107.96 503-1631-517.46-30 207.32 503-1631-517.41-51 250.00 503-1631-517.41-51 243.00 503-1631-517.41-51 64.00 503-1631-517.41-51 94.14 Division Totah $1,413.00 503-1637-517.46-01 4,088.00 503-1637-517.46-01 1,261.36 503-1637-517.46-01 125.00 503-1637-517.46-01 450.34 Division Totah $5,924.70 503-1661-517.49-09 264.53 Division Totah $264.53 503-1671-517.49-98 1,482.78 503-1671-517.49-98 3,000.00 503-1671-517.49-98 498.04 503-1671-517.49-98 391.33 503-1671-517.46-10 281,717.00 503-1671-517.46-10 687.80 Division Torah $287,776.95 Department Totah $295,379.18 Fund Torah $295,379.18 652-8630-575.31-01 17.58 652-8630-575.31-01 29.24 652-8630-575.31-01 7.30 652-8630-575.31-01 2.61 652-8630-575.42-10 7.78 652-8630-575.42-10 6.79 652-8630-575.42-10 15.66 Division Totah $88.96 Department Total: $86.96 Fund Totah $86.96 920-0000-231.53-10 138.82 920-0000-231.53-30 492.40 920-0000-231.53-40 54.01 920-0000-231.55-30 388.00 920-0000-231.5%20 14.35 920-0000-231.51-21 24,036.92 920-0000-231.56-20 169.85 920-0000-231.56-20 1,850.80 920-0000-231.51-10 7,450.32 Page 25 Date: 1/24/05 City of Port Angeles City Council Expenditure Report From: 1/8/05 To: 1/21/05 Vendor PERS... UNITED WAY (PAYROLL) VOLUNTEER FIRE ASSOCIATION WSCFF/EMPLOYEE BENEFIT TRUST Totals for check period Description P/R Deductions pe 01-02 December contribution P/R Deductions pe 01-16 P/R Deductions pe 01-16 P/R Deductions pe 01-16 Payroll Clearing From: 1/8/05 Account Number 920-0000-231.51-11 920-0000-231.51-12 920-0000-231.56-10 920-0000-231.55-20 920-0000-231.53-20 Division Total: Department Total: Fund Total: To: 1/21/05 Invoice Amount 3,162.46 14,448.79 356.67 30.00 1,425.00 $54,018.39 $54,018.39 $54,018.39 $857,324.46 74 Page 26 WASHINGTON, U.S.A. CITY MANAGER'S OFFICE Febmary4,2005 Dr. Gary Cohn, Superintendent Port Angeles School District No. 121 216 E. 4th Street Port Angeles, WA 98362 Re: Port Angeles Resolution No. 3-05 Dear Gary, At its meeting of February 1, 2005, the City Council passed Resolution No. 3-05, a copy of which is enclosed. The Resolution states the City Council's strong support for the School District's requests for a replacement Maintenance & Operations Levy, as well as a new Capital Projects Technology Levy for the 2006 - 2009 school years. The Council wholeheartedly endorses the approval of these levies, as they will serve to enhance the learning environment of the Port Angeles students - the future of our community. Please accept my best wishes for a successful election. Sincerely yours, Michael Quirm City Manager Enclosure: Resolution No. 3-05 321 EaST FIFTH STREET · P, O, BOX 1150 · PORT ANGELES, WA 98362-0217 ~HONE: 360-417-45OO · FAX: 360-417-4509 · TTY: 360~417-4645 E-MAIL: CITYMGR~ CITYOFPA.US RESOLUTION NO. A RESOLUTION ratifying the letter to the Governor and the accompanying statement of Principles. WHEREAS, the dilemma involving the Graving Yard site in Port Angeles and the reactions of the state of Washington, the Lower Elwha Kallam Tribe, and the community to that dilemma have raised issues and concerns are of substantial, long-term significance to the Port Angeles community, the region and the state of Washington; and WHEREAS, the Council has reviewed the letter written by Richard Headrick to Governor Christine Gregoire dated January 21, 2005 and the statement of Principles for resolution of the Port Angeles Graving Yard situation that accompany that letter; and WHEREAS, the Council fully supports the statements made in the letter and the accompanying statement of Principles; and WHEREAS, the Council believes that the statements in the letter and the accompanying statement of Principal address issues and concerns that are of vital, significant, and long-term interest to the community, the region, and the entire state; and WHEREAS, the Council believes that those issues and concerns must be immediately addressed and resolved, NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Port Angeles as follows: The Council does fully support, ratify, confirm and adopt the statements made in the letter signed by Richard Headrick, dated January 21, 2005 to Governor Christine Gregoire and the accompanying statement of Principles; and The Council does hereby join in the request that those issues be addressed fully, fairly and -1- immediately. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the __ day of January, 2005. ATTEST: Becky J. Upton, City Clerk APPROVED AS TO FORM: MAYOR DEPUTY MAYOR COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER William E. Bloor, City Attorney G:\LegaI_Backup\ORDINANCES &RESOLUTION S\R2005-GravingYard,wpd -2- pORTANGEI ES WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Brad Collins, Community Development Manager Adjustments of the City Limits Summary: Following the approval of the Green Crow Subdivision offMt. Angeles Road, the City and Clallam County have worked to implement a condition that the City assume responsibility for Mt. Angeles Road between Bent Cedars Way and the City Limits near Leighton Avenue. This will be accomplished in part by adjusting the City limits to include Mt. Angeles Road at the southern boundary of the Key Subdivision to the northern boundary of the Green Crow Subdivision along Mt. Angeles Road following the quarter section lines. Similarly, in conjunction with a proposed annexation along US 101 in the southwestem UGA, the City will include the US 101 right-of-way from the Pine Street Cutoffwest to Doyle Road in a second adjustment to the City Limits. Clallam County will be taking complementary actions adjusting their jurisdictional boundaries at the same time as noted in the attached Ordinance. Recommendation: City staffreconunends that the City Council adopt the attached Ordinance effeeting the incorporation of portions of the Mt. Angeles Road right-of-way and US 101 right-of- way adjacent to the City Limits as shown on Exhibits A and B. Background / Analysis: A condition of approval of the Green Crow Subdivision off Mt. Angeles Road requires the City with the County's agreement to adjust the City Limits to include that portion of Mt. Angeles Road adjacent to the existing City Limits from Bent Cedars Way to Rook Drive per Exhibit A. The City will also be entering into a subsequent agreement with Clallam County for maintenance and liability of the portion of Mt. Angeles Road between Rook Drive and the City Limits near Leighton Avenue. The condition of approval was based on County concerns that County Road Standards would not be met for the increased traffic resulting from development of the Green Crow Subdivision. Because the City's Urban Standards & Guidelines did not require an expanded roadway surface, which would facilitate faster vehicle speeds, the City, the County, and the developer agreed to this alternate approach to required public improvements for streets. Additionally, a walkway is being provided through the subdivision rather than along Mt. Angeles Road. By incorporating Mt. Angeles right-of-way into the City, the speed limits would be reduced to match not only the existing paved surface but also the lower speed limits on City streets than those on County roads. 75 Mt. Angeles Road/US 101 Cit~ Boundary Adjustments February 1, 2005 Page 2 At this same time, the City is processing an annexation petition for a portion of the southwestern Urban Growth Area (SWUGA), including the US 101 right-of-way from the City Limits at Old Joe Road west to Reddick Road. Since this annexation would leave a gap of US 101 right-of-way between the Pine Street Cutoff and Doyle Road outside the City, the City and the County again agreed to make an adjustment to the City Limits to reduce confusion over jurisdiction for responsibilities associated with the right-of-way. In this manner, there would be no gap in City jurisdiction along US 101 from the eastern City Limits to the new western City Limits. In each case the City will assume traffic control and, therefore, liability for the rights-of-way incorporated into the City. A major reason for the adjustments is to accommodate new urban developments through mitigation of resulting traffic impacts, particularly through lower speed limits. In the case of Mt. Angeles Road, the City will also incur maintenance responsibilities. The City will not incur maintenance responsibilities for US 101 until the City's population reaches 22,500, in which case the City will be required to maintain all of US 101 throughout the City. Adding this portion of US 101 represents perhaps a 10% increase in roadway. Both the County and the Washington State Department of Transportation (WSDOT) have reviewed this boundary adjustment and are in agreement with the actions. Attachment: Ordinance 76 Washington State Department of Transportation I}ouulas B. MacDonald Secretary of Transportation January 31, 2005 Olympic Region Headquarters 5720 Capitol Boulevard, Tumwater P.O Oox 47440 OlympJa, WA 98504-7440 360-357-2600 Fax 360-357-2601 "FRY: 1-800-833-6388 www.wsdot.wa gov Mr. Brad Collins City of Port Angeles P,O. Box 1150 Port Angeles, WA 98362 Re: Ordinance to Adjust Corporate Boundary Dear Mr. Collins: The Washington State Department of Transportation (WSDOT) appreciates the opportunity to review the ordinance to adjust the corporate boundary of the City of Port Angeles to include a portion of Mt. Angeles Road and a portion of US 101 between Doyle Road and the Pine Street Cutoff. The WSDOT has no objections regarding the proposed adjusted corporate boundary. Sincerely, WSDOT, Olympic Region amc ORDINANCE NO. An ordinance adjusting the corporate boundary of the City of Port Angeles to include a portion of Mt. Angeles Road, and a portion of US 101 between Doyle Road and the Pine Street Cutoff. The City of Port Angeles, Washington, does hereby ordain as follows: WHEREAS, the City of Port Angeles and the County of Clallam each have jurisdiction over various portions of Mt. Angeles Road and of US 101; and WHEREAS, current annexation law would have provided that all or none of a portion of a road bordering an annexation to a city would become part of the city; and WHEREAS, RCW 35A.21.210 authorizes a county and a code city located within the county, by agreement, to revise the corporate boundary of the city with respect to roads on the edge of the city boundary, and WHEREAS, the City and County mutually desire to have the corporate boundary of the City revised such that a portion of Mt. Angeles Road will be fully included within the corporate limits and boundary of the City' as set forth in the attached Exhibit A; WHEREAS, the City and County mutually desire to have the corporate boundary of the City revised such that a portion of US 101 between Doyle Road and the Pine Street Cutoff will be fully included within the corporate limits and boundary of the City as set forth in the attached Exhibit B; NOW, THEREFORE, -1- Section 1. IT IS HEREBY ORDAINED by the City Council of the City of Port Angeles that the corporate boundary of the City of Port Angeles is hereby revised to incorporate into the City of Port Angeles, for all purposes and with the same legal right, liabilities, and obligations as if said road portions were being annexed into the City, that portion of Mt. Angeles Road as described in the attached Exhibit A; and Section 2. IT IS HEREBY ORDAINED by the City Council of the City of Port Angeles that the corporate boundary of the City of Port Angeles is hereby revised to incorporate into the City of Port Angeles, for all purposes and with the same legal right, liabilities, and obligations as if said road portions were being annexed into the City, that portion of US 101 between Doyle Road and the Pine Street Cutoff, as described in the attached Exhibit B; and Section 3 - Effective Date. IT IS FURTHER ORDAINED that this ordinance shall be effective when a similar ordinance or resolution is approved by the legislative body of Clallam County, unless such ordinance or resolution has akeady been adopted by Clallam County, in which case the ordinance shall be effective upon the adoption of this ordinance. Section 4 - Severabilit¥. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance is declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining parts of this ordinance. Section 5 - Publication. This Ordinance shall be published as required by law. PASSED by the City Council of the City of Port Angeles at a regular meeting of -2- said Council held on the 1st day of February, 2005. ATTEST: MAYOR Becky J. Upton, City Clerk APPROVED AS TO FORM: William E. Bloor, City Attorney PUBLISHED: By Summary G:iL~gai_B ackup\OIkDINANCES &RES OLLITIONSI20054) 1.Annex. Mt Angeles Rd & 101 PASSED: the day of ,2005. APPROVED: the __ day of ,2005. PUBLISHED: the __ day of ,2005. FILED WITH THE COUNTY AUDITOR: the .__ day of ,2005. FILED WITH STATE: the day of ,2005. -3- Mt. Angeles Road Right-of-Way Acquisition (Exhibit A) All of Mount Angeles Road fight-of-way, County Road No. 34310, lying within the northeast quarter of the southwest quarter of Section 14, Township 30 North, Range 6 West of the Willamette Meridian, Clallam County, Washington, as shown on attached Exhibit B containing 1.07 acres more or less. 81 82 Western UGA Right-of-Way Acquisition - Doyle Road East (Exhibit B) A portion of the south half of Section 9, Township 30 North, Range 6 West of the Willamette Meridian, Clallam County, Washington, described as follows: Beginning at the intersection of the west margin of Pine Street Cutoff and the south margin of U.S. Highway 101; thence west along said south margin to the east margin of Doyle Road; thence northerly along said east margin, and a prolongation thereof, to the north margin of U.S. Highway 101 and the limits of the City of Port Angeles; thence east along said north margin and said limits to the west margin of Pine Street Cutoff; thence southerly to the Point of Beginning. Containing 19.05 acres more or less. WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: FEBRUARY 1, 2005 CITY COUNCIL R~ Lf~ YVONNE ZIOMKOWSKI, FINANCE DI REFINANCING OF BONDS summary: Due to a favorable interest environment, it is now possible to refinance the City's outstanding 1995 voted general obligation bonds as well as the 1995 Electric Utility bonds. The purpose of the refinancing is to achieve a savings for the taxpayers and the Electric utility customers. Included in the Electric Utility bonds is $925,000 to fund electric infrastructure projects. Recommendation: Staff recommends the City Council adopt the ordinances accepting the offers to purchase the refunding and revenue bonds and the unlimited tax general obligation refunding bonds. Both refunding bonds will pay all expenses related to each refinancing. Background / Analysis: In 1995, the City issued an unlimited tax (voted) general obligation bonds to finance a new Library in the amount of $3,600,000, and Electric Utility revenue bonds in the amount of $2,760,000 to finance infrastructure improvements. These bonds have maturity dates in 2015 and 2025 respectively. As a result of favorable market movements and call options in 2005, the City can realize a savings by refunding the bonds. For the refinancing of the voted general obligation bonds, the City can achieve almost 7% in savings. The normal savings for issuers through refinancing of municipal bonds has been around 3-5%. The annual savings to the taxpayers is expected to be in the range of $21,000 per year for the next 10 years. The savings that can currently be achieved for the 1995 Electric Utility bonds are around 11% or approximately $18,000 annually for the next 20 years. During the process o frefinancing the bonds, new projects for the Electric Utility infrastructure were identified. These projects include Ewha underground, extension of the electrical distribution system, and two substations which amount to $925,000. It is cost and time effective to combine this amount with the refinancing bonds instead of issuing separate revenue bonds. The insurance for debt service is included. Due to the insurance, the bonds will receive a "Aaa" rating, which will produce a net benefit to the City of approximately $18,000 for the G.O. Bond and $77,000 for the Electric Revenue Bond verses selling the bonds without insurance. Moody's Investors Services confirmed the City's rating for the general obligation bonds of"A2." At the time 85 of writing this memo, I have not had conformation of the rating for the Electric Utility revenue bonds. I assume it will stay at "A3" as it was in 2001. At the Council meeting of February 1, 2005, assuming interest rates are still favorable, Seattle- Northwest Securities will present the City Council with a formal offer to purchase refunding bonds to refinance the 1995 voted general obligation bonds providing a savings to the taxpayers of the City. They will also present the Council with an offer to refinance the 1995 Electric Utility revenue bonds and issue Electric Revenue bonds. By approving the bond ordinance, Council accepts the offer by reference. The figures are subject to change and will depend on the February 1, 2005, market condition. Seattle-Northwest Securities was selected as an underwriter in the fall of 2001 through the bidding process. From this time, they have assisted the City with refinancing three bonds (1991 and 1992 voted general obligation bonds as well as the 1992 Electric Utilitybonds) and have underwritten the 2003 Water Wastewater revenue bonds. At the February 1, 2005, meeting, the Council will also be presented wi.th the Ordinances authorizing the sale of the refunding bonds and the establishment of escrow agreements to accomplish the refinancings. The Financial Advisor will present the Council with a report demonstrating that the offer of Seattle-Northwest is competitive with or better than other bond issues of similar credit quality sold in the market at or near the same time. Since the refundings are very sensitive to upside interest movement, time is very important. Usually, we adopt ordinances at the second meeting, however, due to extreme interest rate changes on a daily basis, I am asking Council to adopt the ordinances at the meeting of February 1. The longer we wait, the less savings we will realize. In the past, we have adopted bond ordinances at the first meeting. Staff recommends the Council adopt the Ordinances accepting the offers to pumhase the bonds. 86 Steve Gaidos Consulting, LLC Municipal Financial Advisory Services City of Port Angeles $3,185,000 Electric Utility Refunding and Revenue Bonds, 2005 and $2,345,000 Unlimited Tax General Obligation Refunding Bonds, 2005 Pricing Report February 1,2005 Back~ound: In July 2001, a Request for Proposals was distributed to n/ne different underwriting firms to select an underwriter for the City's bonds. Through a careful review of the proposals, Seattle-Northwest Securities Corporation was selected based on experience; underwriting capability and the proposed under~vriting fee to be charged for the service. US Bank Piper Jaffray was runner up among the three other responses that included D.A. Davidson & Co. and Bane of America Securities, LLC. Due to the timing sensitivity of timing for refunding transactions and the past performance and experience of Seattle-Northwest on the City's bond issues, it was advisable and we recommended the continued use of Seattle-Northwest Securities for these refunding issues. An official statement was prepared for the sale of each of the Bonds and a rating was requested from Moody's Investors Service. Municipal bond insurance was also sought for the debt service payments for the issue and a surety policy was also sought for the debt service reserve requirement. Approval for insurance, if purchased, would provide the Bonds with the highest investment grade rating of "AAA". The firms providing insurance for municipal bonds are Ambac, FGIC, XL Capital and FSA insurance companies. An application for insurance approval and for premium bids ~vere sent to each of these firms. Thc low bidder for both bond issues was XL Capital. With an AAA rating the City would receive a lower interest rates for its Bonds than ir ~vould on its own credit rating. If the reduction in rates is enough to produce a debt service savings that offsets the cost of the insurance premium paid, there is economic benefit to the City and the insurance is acquired for the Bonds. If there is no economic benefit, the insurance is refused and the Bonds are sold on the City's rating alone. The reserve requirement for the Electric Utility Bond issue is $228,000. The premium for the surety policy for the reserve requirement is 3.5% of its total value or $7,982. This policy is in place of funding the reserve requirement from Bond proceeds, which would increase the size of the issue and also increase the annual debt service. Additionally, thc surety allows the Ciw to avoid the arbitrage rebate issues associated with a cash funded reserve, which could save the City time and money over the life of the Electric Utility issue. The surety will be in place as long as the Bonds are outstanding. There is no reserve requirement for the Unlimited Tax General Obligation Bonds. The City's UTGO debt is rated A-2 by Moody's. The City's Electric Utility debt has been rated A-3 by Moody's, a favorable rating for city Electric Utility Revenue Bonds. Comparing the interest rates for bonds rated AAA to those of an A-2 rated UTGO bond and to those of an A-3 rated Electric Revenue Bond demonstrates the City gains approximately $30,000 in economic benefit from the use of insurance for the UTGO and $73,800 for the Electric Revenue Bonds, even after the payment of the insurance premium. See Attachment 8 and 9. Consequently, the Bonds were sold with the insurance of XL Capital for the UTGO, the firm submitting the lowest premium bid. Refunding bonds are very interest rare sensitive. A small change in rates can make a significant difference in the savings that can be achieved. Consequently, it is important to be able to take advantage of favorable market conditions when the situation arises. The current market conditions are favorable but very volatile. Movements in interest rates have exceeded .1% in a day's time, which is enough to make or break many refunding attempts. Once the official statement was completed and the rating and insurance obtained, it was prudent to bring the issues to market as quickly as possible to take advantage of the favorable interest rates. Most economic pundits agree that interest rates are going to rise and particularly for the UTGO, capturing the lower rate is critical. Consequently the need for a quick sale of the Bonds. For the past seven days, Seattle-Northwest Securities has been in the bond market working to sell the City's issues. On Monday, a pre-pricing conference call was held between the City, Financial Ad,/~sor and Seattle- Northwest to determine the likely interest rates and pricing structure that Seattle-Northwest would use during the "order period" or during period in which investors place their orders for bonds. A pricing structure were agreed upon which all believed would present the City with very attractive market rates for these Bonds. A final pricing conference call was held at 6:30AM this morning to confirm the final interest rates that would be presented to the investors. The order period commenced at 7:00 AM and ran for three hours during which investors placed orders for the City's Bonds. Term bonds were inserted for the Electric Revenue bonds which had very httle impact on our original structure or the savings . At the end of the order period the Bonds were sold to investors Due to the complex nature of refunding transactions involving the estabhshment of an escrow of invested securities which pay for the refunded bonds and the requirement to meet Treasury regulations regarding the allowable interest that can he earned from bond proceeds, calculations have to be verified by a qualified accountant. Calculations made by Seatde- Northwest as part of their responsibility in the refunding transactions, were immediately submitted m Grant Thornton, LLP for verification of accuracy and compliance. Once approval was received, the sale of the Bonds could be concluded. The committed yields of the City's bonds compare very favorably to other bond issues recently sold with similar credit characteristics. See Attachment 7. Seatde-Northwest is presenting the City Council its offer to purchase the Bonds based on the interest rates and pricing structure at which the Bonds were sold to the investors. Once accepted by the City Council by passage of the Bond Ordinance, the sale is completed and the interest rates are locked in. Settlement will take place on or about February 15, at which time the City v/ti rec(~ve funds for the projects of the Electric Utihty, the costs of issuance will be paid and the remainder of the funds will be invested in Treasury securities and placed in escrow to accomplish the refundings. Prior to settlement, final legal documents are prepared. The Bonds Will be printed and Bond Counsel will provide their legal opinion regarding the validity of the issuance and the tax exemption of the issue. Objectives: Our objective for the City's financing was to obtain competitively priced bond issue in a favorable market and to minimize the cost to the City in terms of issuance costs and debt repayment. Results: The City has obtained a market competitive proposal from Seattle-Northwest Securities. The all-inclusive interest cost (AIC) is 4.28% for the Electric Ufilfiy Bonds and 3.70% for the UTGO. The difference is due to the length of the issue and the facts that full faith and credit tax backed issues with better underlying ratings sell at lower interest rates. The AIC includes all costs of issuance in the calculation of the rate. Recommendation: Steve Gaidos Consulting, LLC recommends the City accept the offer of Seattle-Northwest Securities at its February I, 2005 council meeting. The rate represents a fa/r and competitive market rate for the bonds in a market that is expected to see rising interest rates over time. The City is fortunate to be financing at this time. Attachments: Attachment 1: demonstrates the annual and semi- annual debt service and savings of the UTGO Refunding Bonds. Attachment 2: presents the annual and semi annual debt service and savings of the Refunding portion of the Electric Utility Bonds. 2 Attachment 3: presents the sources and uses of funds in the UTGO transaction. Attachment 4: presents the sources and uses of funds in the Electric Utihty transaction. The sources and uses are allocated to the respective purposes of the issue, refunding and new project proceeds. Attachment 5: demonstrates the total Electric Utility debt service after the issuance of the new Bonds. Attachment 6: provides a graph of key market indicators over the past year. Tine chart demonstrates that over the past year rates have remained relatively constant except for the dip in the spring and rise in the summer of this last year. Attachment 7: compares the City's issue to other comparable issues sold in the past few days and also compared to a national index of yields (MMD) for Aaa rated bonds. The index is representative of general obligation bonds but the general relation ship holds for revenue issues such as the Electric Utility bonds, but approximately .05% higher each year for such bonds that have the same rating. The index for the past 7 days increased approximately .02-.04% for each maturity during the first 7 years and has decreased .02% over the remainder of the maturity range. Given those increases, the City's issue compares very favorably to other insured bond issues that have sold within the last ~veek. There were no utility issues that were comparable to the City's bonds. Attachment 8& 9: Provides an analysis of the benefit of using municipal bond insurance for the issues. The benefit is demonstrated by the difference in present value savings with and without insurance. If the savings is greater for the insured issue, there is economic benefit to the City through the use of insurance. This analysis is provided by Seattle Northwest Securities. As Financial Advisor, I concur with the analysis. Financial markets: The following comments were made about the bond markets over the past few days. The information is provided to give the City a sense of the market conditions at the time of the sale of the bonds. Bonds trade mixed, dollar inches up Long-term Treasunes rise on low inflation; greenback gains strength but/acks c/ear direclion. January 31, 2005:4:19 PM EST New York (CNN/Money) - The dollar was slightly stronger while bond prices traded mixed on Monday as subdued inflation data supported longer-dated securities. In late afternoon trading, the dollar bought ¥103.64, up from ¥103.37 late Friday. The euro bought $1.3028, down from $1.3043. The benchmark 10-year note rose 3/32 of a point to 100-29/32 to yield 4.13 percent, up from 4.14 percent late Friday. The 30-year bond gained 10/32 to 111-28/32 to yield 4.59 percent, down from 4.6I percent late Friday. Bond prices and yields move in opposite directions. The five-year note stood unchanged at 99-21/32 to yield 3.70 percent, while the two-year lost a tick at 99- 22/32 to yield 3.28 percent. In the currency market, the U.S. currency fluctuated in tight ranges ahead of the upcoming Federal Reserve's policy setting committee meeting and a Group of Seven finance ministers and central bankers' gathering on Friday and Saturday. Some economic news also puzzled bond traders, as Midwest manufacturers fared better than expected in January, but new home sales proved surprisingly weak in December, neutralizing the market's reaction. Another report on personal income and consumption showed inflation was well contained, lessening the chances that the Federal Reserve would be forced to hike interest rates more aggressively. "With the Fed expected to go another 25 basis points on Wednesday and still-tame inflation reports, we are just seeing more of the same flattening trend," said Mary Ann Hurley, vice president of fixed-income trading at D.A. Davidson & Co. in Seattle, Washington. The Fed meets on Tuesday and Wednesday to set monetary policy and is widely expected to raise its benchmark federal funds rate a quarter percentage point to 2.50 percent. Interest rate futures have also priced in hikes at the two following meetings. Bond prices initially dipped after the Chicago purchasing management index rose to 62.4 in January from 61.9 in December. Analysts had looked for a fa]l to 60.0. The employment index also ticked up to 52.8 after it dropped to a revised 51.1 in December, though the prices paid index declined. However, figures on new home sales were much weaker than expected, especially after downward revisions to previous months. Sales ran at a 1.098 mill/on pace in December, below the recovery to 1.20 million analysts had forecast. "The bond market's reaction has been relatively subdued since we have ISM tomorrow," said Steve Gallagher, economist at SG Cowen Securities, referring to the Institute for Supply Management's national factory gauge. "The housing numbers were weaker than expected and that's two months in a row. Maybe we're finally getting a sign that housing is moderating a bit." Steve Gaidos, Manager Attachment 1 $2,345,000 Unlirrdted Tax General Obligation Refunding Bonds, 2005 Savings Report Date Present Value Prior Refun&ng Annual to 02/15/2005 Debt Service Debt Service Savings Savings ~ 3.4i 18133% $ 59,885.00 $ 17,997.22 $ 41,887.78 $ 41,589.68 59,885.00 87,625.00 (27,740.00) $ 14,147.78 (27,080.62) 59,885 .t30 4I ,950.00 17,935.00 17,215.01 234,885.00 231,950.00 2,935.00 20,870.00 2,769.92 55,685.00 39,100.00 16,585.00 15,389.66 240,685.00 239,100.00 1,585.00 18,170.00 1,446.09 51,152.50 36,I00.00 15,052.50 13,502.99 246,152.50 241,I00.00 5,052.50 20,105.00 4,456.37 46,277.50 33,025.00 13,252.50 I1,492.82 256,277.50 248,025.00 8,252.50 21,505.00 7,036.69 40,922.50 29,800.00 11,122.50 9,324.79 260,922.50 254,800.00 6,122.50 17,245.00 5,046.84 35,202.50 25,300.00 9,902.50 8,025.81 265,202.50 255,300.00 9,902.50 19,805.00 7,891.20 29,165.00 20,700.00 8,465.00 6,632.52 274,165.00 265,700.00 8,465.00 16,930.00 6,521.28 22,550.00 15,800.00 6,750.00 5,112.85 282,550.00 270,800.00 11,750.00 18.500.00 8,750.87 15,400.00 10,700.00 4,700.00 3,441.64 285,400.00 270,700.00 14,700.00 19,400.00 10,583.72 7,975.00 5,500.00 2,475.00 1,752.06 297,975.00 280,500.00 17,475.00 19,950.00 12,163.14 5/1/2005 11/1/2005 5/1/2006 1I/1/2006 5/1/2007 I1/1/2007 5/1/2008 11/1/2oo8 5/1/2009 11/1/2009 8/1/2OLO 11/1/2010 5/1/2011 11/1/2011 5/1/2012 1i/1/2o~2 5/1/2013 11/1/2013 5/1/2014 11/1/2014 5/1/2015 11/1/2015 $3,128,200.00 $2,921,572.22 $206,627.78 Savings Summary PV of Savings from cash flow Plus: Refunding funds on hand Net PV savings $ 206,627.78 $173,065.34 3,244.24 $179,309.58 173,065.33 Attachment 2 $2,235,000 Electric Revenue Refunding Bonds, 2005 Savings Report Prior Refunding Debt Service Debt Service Savings Present Value to 02/15/2005 ~ 4.0920618% 09/01/2005 $139,305.00 $116,869.86 $22,435.14 $23,339.79 09/01/2006 199,305.00 158,987.50 40,317.50 38,404.03 09/01/2007 201,065.00 156,737.50 44,327.50 40,487.61 09/01/2008 202,490.00 t59,487.50 43,002.50 37,720.80 09/01/2009 203,535.00 162,087.50 41,447.50 34,916.57 09/01/2010 204,260.00 159,537.50 44,722.50 36,132.55 09/01/201I 204,620.00 161,137.50 43,482.50 33,737.19 09/01/2012 204,605.00 162,537.50 42,067.50 31,344.82 09/01/2013 204,205.00 158,737.50 45,467.50 32,494.18 09/01/2014 203,410.00 159,937.50 43,472.50 29,835.05 09/01/2015 202,310.00 160,937.50 41,372.50 27,266.65 09/01/2016 200,905.00 157,000.00 43,905.00 27,754.96 09/01/2017 204,195.00 163,062.50 41,132.50 24,968.11 09/01/2018 201,875.00 158,692.50 43,182.50 25,143.83 09/01/2019 204,187.50 159,092.50 45,095.00 25,189.18 09/01/2020 200,885.00 159,292.50 41,592.50 22,304.11 09/01/2021 202,275.00 159,292.50 42,982.50 22,110.93 09/01/2022 203,050.00 159,027.50 44,022.50 21,724.23 09/01/2023 203,210.00 158,492.50 44,717.50 21,168.94 09/01/2024 202,755.00 157,612.50 45,142.50 20,499.92 09/01/2025 201,685.00 156,450.00 45,235.00 19,704.52 $4,194,132.50 $3,305,009.86 Savings Summary PV of Savings from cash flow Less: Prior funds on hand Plus: Refunding funds on hand Net PV savings $889,122.64 $596,247.96 (234,539.05) 583.84 $362,292.75 $596,247.97 Attachment 3 $2,345,000 Unlimited Tax General Obligation Refunding Bonds, 2005 Sources and Uses SOURCES OF FUNDS Par Amount of Bonds Reo ffering Premium $ 2,345,000.00 62,201.35 TOTALSOURCES $ 2,407,201.35 USES OF FUNDS Total Underwriting Fees Financial Advisor Bond Counsel Rating Agency Fee POS/Official Statement Gross Bond Insurance Premium ( 33 bp) Escrow Verification Escrow Trustee Deposit to Escrow Additional Proceeds 14,046.55 4,940.00 7,I00.00 5,300.00 4,500.00 9,641.19 2,000.00 750.00 2,355,679.37 3.244.24 TOTAL USES $ 2,407,201.35 Attachment 4 $3,185,000 Electric Revenue and Refunding Bonds, 2005 Sources and Uses Bond Proceeds: Par Amount Original Issue Discount Premium Uses: Proiect Fund Deposits: Project Fund Cash Deposit SLG Purchases New Money Refunding Portion Pordon Total $950,000.00 $2,235,000.00 $3,185,000.00 (6,511.45) (16,057.95) (22,569~40) 7,533.60 16,748.90 24,282.50 $951,022.15 $2,235,690.95 $3,186,713.10 $925,000.00 $ 925,000.00 69,653.74 69,653.74 2,341,250.00 2,341,250.00 Del]very Date Expenses: Cost of Issuance 8,539.09 Underwriter's Discount 5,928.00 Bond Insurance OLLCA ~ 0.45%) 6,294.07 Surety Policy (XLCA ~ 3.5% of DSRF) 2,358.25 Other Uses of Funds: Additional Proceeds 24,360.9I 32,900.00 I3,946.40 19,874.40 14,807.62 21,101.69 5,630.49 7,988.74 23,119.41 2,469,649.16 3,417,768.57 2,902.74 583.84 3,486.58 $951,022.15 $2,470,233.00 $3,421,255.15 Attachment 5 $3,185,000 Electric Revenue and Refunding Bonds, 2005 Aggregate Debt Service After Issuance Electric Electric Revenue Bonds, Revenue Re£ Period 2005(New Bonds, 2005 2001 Electric Unrefunded Ending Money) (Re£ 95) Revenue Bonds Bonds 09/01/2005 $39,815.06 $116,869.86 $201,572.50 09/01/2006 70,795.00 158,987.50 I98,580.00 09/01/2007 69,745.00 156,737.50 200,350.00 09/01/2008 68,695.00 159,487.50 196,750.00 09/01/2009 72,645.00 I62,087.50 192,900.00 09/01/2010 71,445.00 159,537.50 198,950.00 09/01/2011 69,845.00 161,137.50 199,495.00 09/01/2012 68,245.00 162,537.50 194,090.00 09/01/2013 71,645.00 158,737.50 193,685.00 09/01/2014 69,845.00 159,937.50 198,045.00 09/01/2015 73,045.00 160,937.50 191,935.00 09/01/2016 71,170.00 157,000.00 195,825.00 09/01/2017 69,295.00 I63,062.50 199,245.00 09/01/2018 72,395.00 t58,692.50 196,895.00 09/01/2019 70,195.00 159,092.50 199,300.00 09/01/2020 72,995.00 159,292.50 196,215.00 09/01/2021 70,595.00 I59,292.50 192,885.00 09/01/2022 68,165.00 159,027.50 199,310.00 09/01/2023 70,705.00 158,492.50 09/01/2024 72,975.00 157,612.50 09/01/2025 156,450.00 Aggregate Debt Service $63,240.00 $421,497.42 428,362.50 426,832.50 424,932.50 427,632.50 429,932.50 430,477.50 424,872.50 424,067.50 427,827.50 425,917.50 423,995.00 431,602.50 427,982.50 428,587.50 428,502.50 422,772.50 426,502.50 229,197.50 230,587.50 I56,450.00 $1,384,255.06 $3,305,009.86 $3,546,027.50 $63,240.00 $8,298,532.42 Attachment 6 One Year Rate History 6.00% 5.50% - 3.50% 3.00% - 2.50% 2.00% Date 10 Type Cornp/Neg lnsuted Rating/Underlying Sale Date BQ Attachment 7 Comparable Sales Round Rock, TX Sedro-WooleySD UTGO UTGO $19,915,000 $1,525,000 Neg Neg Yes Yes Aaa/AA3 Aaa/A 1/24/2005 1/24/2005 Yes Yes Due 8/1 Due 12/1 YEAR Rate Yield Rate Yield 2005 2.25% 2.05% 2.00% 2007 2.75% 2.44% 3.00% 2009 3.00% 2.81% 3.25% 20ll 4.25% 3.20% 4.00% 2013 5.00% 3.53% 4.00% 2015 5.00% 3.74% 4.00% 2017 5.00% 3.91% 2019 5.00% 4.04% 2021 4.25% 4.27% 2023 2025 Renton SD UTGO $72,000,000 Neg Yes Aaa/AA1 1/24/2005 No Due 12/1 Rate Yield $4,830,000 Neg Yes AAA/AA 1/31/2005 Yes Due 6/1 Rate Yield 2.18% 3.50% 2.25% 3.00% 2.54% 3.00% 2.57%. 3.00% 2.96% 5.00% 2.98% 3.00% 3.27% 5.00% 3.31'70 4.00% 3.53% 5.00% 3.58% 4.00% 3.73% 5.00% 3.76% 4.00% City of McKenzie SD, OR Port Angeles UTGO UTGO Ref $2,345,000 Neg Yes Aaa/A2 2/1/2005 Yes Due 11/1 Rate Yield 2.00% 3.00% 2.20% 3.00% 2.45% 3.00% 2.58% 3.00% 2.80% 3.00% 2.95% 3.00% 3.13% 4.00% 3.26% 4.00% 3.38% 4.00% 3.51% 4.00% 3.56% 4.00% 3.69% 3.75% 4.00% 3.75% City of Port Angeles Electric Rev & Ref $3,810,000 Neg Yes Aaa/A3 2/1/2005 Yes Due 9/1 Rate Yield 2.30% 2.63% 3.05% 3.36% 3.61% 3.79% 3.80% 3.93% 4.00% 4.10% 4.05% 4A6% 4.20% 4.28% 4.30% 4.40% 11 With Insurance Sources of Funds Bond par amount Net premium/discount Total Sources Uses of Funds Escrow cost Bond insurance Other costs and addl. Proceeds Total Uses PV of refunding sa,rings Total Savings Percent of refunded bonds True Interest Cost Avarage Annual Debt Service Insurance premium (% of debt service) Attachment 8 $2,345,000 Un~mited Tax GeneralObhgation Refunding Bonds, 2005 Insurance Benefit $2,345,000 62,201 $2,407,20I Without Insurance Sources of Funds Bond par amount Net premium/discount Total Sources $2,355,679 9,641.00 $ 41,881 $2,407,20I Uses of Funds Escrow cost Bond insurance Other costs and addl. Proceeds Total Uses $ 176,310 $ 2O6,628 7.73% 3.52% $ 272,761 0.33% PV of refunding savings Total Savings Percent of refunded bonds True Interest Cost Avarage Annual Debt Service Insurance premium $2,370,000 29.218 $2,399,218 $2,355,679 43.538 $2,399,217 151,241 176,623 6.63% 3.69% 275,562 NA 12 With Insurance and Cash Reserve Sources of Funds Bond par amount Net premium Existing reserve Total Sources Uses of Funds Escrow cost Bond insurance Surety po[icy Project fund Cash reserve Other Costs & Addl. Proceeds Total Uses PV of debt service savings Less: prior funds on hand Plus: PV of cash reserve Plus: Additional Proceeds Total PV savings Percent of refunded bonds True Interest Cost Average annual debt service Insurance rate (% of debt set'v/ce) Attachment 9 3,425,000 2,083 410,221) 3,837,303 2,410,904 22,711 0 925,000 421,340 57.348 3,837,303 428,189 (234,539) 148,289 952 342,891 14,9% 4.13% 245,659 0.45% With Insurance and Surety Policy for New Bonds Without Insurance and With Cash Reserve Sources of Funds Bond par amount 3,405,000 Net premium 1,680 Existing reserve 410,221) Total Sources 3,816,900 Sources of Funds Bond par amount 3,180,000 Net premium 1,716 Existing reserve 410,220 Total Sources 3,591,936 Uses of Funds Escrow cost 2,410,904 Bond insurance 0 Surety policy 0 Project fund 925,000 Cash reserve 426,152 Other Costs & Addl. Proceeds 54,845 Total Uses 3,816,900 Uses of Funds Escrow cost 2,410,904 Bond insurance 21,102 Surety po[icy 7,989 Project fund 925,000 Cash reserve 175,681 Other Costs & Addl. Proceeds 51,26! Total Uses 3,591,936 PV of debt serv/ce savings Less: prior funds on hand Plus: PV of cash reserve Plus: Additional Proceeds Total PV savings Percent of refunded bonds True Interest Cost Average annual debt service Insurance assumption (% of debt semce) PV of debt service savings 596,248 Less: prior funds on hand (234,539) Plus: PV of cash reserve 0 Plus: Additional Proceeds 584 Total PV savings 362,293 Percent of refunded bonds I5.7% True Interest Cost 4.16'7o Average annual debt service 228,250 Insurance rate 0.45% (% of debt service) 373,250 (234,539) 149,982 (i9~ 288,495 12.5% 4.35% 250,471 NA 13 CITY OF PORT ANGELES, WASHINGTON UNLIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 2005 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of unlimited tax general obligation refunding bonds of the City in the aggregate principal amount of $2,345,000 to refund certain outstanding unlimited tax general obligation bonds of the City; authorizing the appointment of an escrow agent and the execution of an escrow agreement related to such refunding; providing the date and form of said bonds; providing for the disposition of the bond proceeds; providing for the annual levy of taxes to pay the principal of and interest on the bonds; and approving the sale of the bonds. PASSED: February 1, 2005 Prepared by: PRESTON GATES & ELLIS LLP Seattle, Washington Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. TABLE OFCONTENTS* Page Definitions ............................................................................................................... 2 Authorization of Bonds ........................................................................................... 4 Registration, Exchange and Payments .................................................................... 5 Redemption; Purchase of Bonds ............................................................................. 8 Form of Bonds ......................................................................................................... 8 Execution of Bonds ............................................................................................... 10 Pledge of Taxes and Credit ................................................................................... 11 Defeasance ............................................................................................................. 11 Tax Covenants; Special Designation ..................................................................... 11 Refunding Account and Call for Redemption of Refunded Bonds ....................... 12 Sale of Bonds ......................................................................................................... 14 Official Statement .................................................................................................. 14 Undertaking to Provide Ongoing Disclosure ........................................................ 14 Bond Insurance ...................................................................................................... 17 Lost or Destroyed Bonds ....................................................................................... 19 General Authorization ........................................................................................... 19 Severability ............................................................................................................ 19 Effective Date ........................................................................................................ 20 * Neither this Table of Contents nor the preceding cover page is a part of this ordinance. ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of unlimited tax general obligation refunding bonds of the City in the aggregate principal amount of $2,345,000 to refund certain outstanding unlimited tax general obligation bonds of the City; authorizing the appointment of an escrow agent and the execution of an escrow agreement related to such refunding; providing the date and form of said bonds; providing for the disposition of the bond proceeds; providing for the annual levy of taxes to pay the principal of and interest on the bonds; and approving the sale of the bonds. WHEREAS, the City of Port Angeles, Washington (the "City"), now has outstanding $2,445,000 principal amount of its unlimited tax general obligation bonds issued under date of November 15, 1995 (the "1995 Bonds"), pursuant to Ordinance No. 2892 of the City, passed on October 17, 1995, and Resolution No. 26-95 of the City Council adopted on November 7, 1995 (together, the "1995 Bond Ordinance"), as follows: Maturities (November 1) Principal Amounts Interest Rates 2005 $165,000 4.70% 2006 175,000 4.80 2007 185,000 4.90 2008 195,000 5.00 2009 210,000 5.10 2010 220,000 5.20 2011 230,000 5.25 2012 245,000 5.40 2013 260,000 5.50 2014 270,000 5.50 2015 290,000 5.50 ; and WHEREAS, Ordinance No. 2892 authorizes the defeasance and redemption of the 1995 Bonds maturing on and after November 1,2006, on and after November 1, 2005 (in whole or in part on any date), at a price of par plus accrued interest, if any, to the date of redemption; and WHEREAS, after due consideration it appears to the City Council of the City (the "Council") that the callable portions of the 1995 Bonds may be refunded by the issuance and sale of its unlimited tax general obligation reftmding bonds to effect a savings to the City and its taxpayers; and WHEREAS, to effect such refunding most advantageously to the City and its taxpayers, it is hereby found necessary and advisable that an escrow agent be appointed and that certain Government Obligations be purchased from proceeds of sale of the refunding bonds and certain money of the City; and WHEREAS, it appears to the Council that it is in the best interests of the City and its taxpayers that the Bonds be sold to Seattle-Northwest Securities Corporation on the terms set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions. The following words and terms as used in this ordinance shall have the following meanings for all purposes of this ordinance, unless some other meaning is plainly intended. Acquired Obligations means the Government Obligations acquired by the City under the terms of this ordinance and the Escrow Agreement to effect the defeasance and refunding of the Refunded Bonds. Beneficial Owner means the beneficial owner of all or a portion of a Bond while such Bond is in fully immobilized form. Bond Fund means the General Obligation Bond Redemption Fund maintained by the City. Bond Insurance Policy means the municipal bond insurance policy issued by the Insurer insuring the payment when due of the principal of and interest on the Bonds as provided therein. Bond Register means the registration records for the Bonds maintained by the Bond Registrar. Bond Registrar means the fiscal agency of the State of Washington in New York, New York, whose duties include registering and authenticating the Bonds, maintaining the Bond Register, transferring ownership of the Bonds, and paying the principal of and interest on the Bonds. Bonds mean the $2,345,000 principal amount of City of Port Angeles, Washington, Unlimited Tax General Obligation Bonds, 2005, issued pursuant to this ordinance. City means the City of Port Angeles, Washington, a municipal corporation duly organized and existing under the laws of the State of Washington. Code means the Internal Revenue Code of I986, as amended, together with corresponding and applicable final, temporary or proposed regulations and revenue rulings issued or amended with respect thereto by the United States Treasury Department or the Internal Revenue Service, to the extent applicable to the Bonds. Commission means the Securities and Exchange Commission. Council means the City Council as the general legislative authority of the City. DTC means The Depository Trust Company of New York, as depository for the Bonds, or any successor or substitute depository for the Bonds. Escrow Agent means U.S. Bank Trust National Association. Escrow Agreement means the Escrow Deposit Agreement to be entered into by the City and the Escrow Agent pursuant to Section 7 of this ordinance. Finance Director means the duly qualified, appointed and acting Finance Director of the City or any other officer who succeeds to the duties now delegated to that office. Government Obligations means those obligations now or hereafter defined as such in Chapter 39.53 RCW, as such chapter may be hereafter amended or restated. Insurer means XL Capital Assurance Inc., a stock insurance company incorporated under the laws of the State of New York, or any successor thereto or assignee thereof, as issuer of the Bond Insurance Policy. Letter of Representations means a blanket issuer letter of representations from the City to DTC dated September 23, 1998. MSRB means the Municipal Securities Rulemaking Board or any successor to its functions. 1995 Bond Ordinance means Ordinance No. 2892, passed by the Council on October 17, 1995, and Resolution No. 26-95 of the Council adopted on November 7, 1995. 1995 Bonds means the City of Port Angeles, Washington, Unlimited Tax General Obligation Bonds, 1995, issued pursuant to the 1995 Bond Ordinance under date of November 15, 1995, in the original principal amount of $3,600,000. NRMSIR means a nationally recognized municipal securities information repository. Refunded Bonds means the 1995 Bonds maturing on and after November 1, 2006. Refunding Account means the account by that name established within the Bond Fund and maintained by the Escrow Agent pursuant to Section 10 of this ordinance. Registered Owner means the person named as the registered owner ora Bond in the Bond Register. For so long as the Bonds are held in book-entry only form, DTC shall be deemed to be the sole Registered Owner. Rule means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. $ID means a state information depository for the State of Washington. Underwriter means Seattle-Northwest Securities Corporation. In this ordinance, unless the context othe~vise requires: (a) The terms "hereby," "hereof," "hereto," "herein, "hereunder" and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term "hereafter" shall mean after, and the term "heretofore" shall mean before, the date of this ordinance; (b) Words of the masculine gender shall mean and include correlative words of the feminine and neuter genders and words importing the singular number shall mean and include the plural number and vice versa; (c) Words importing persons shall include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (d) Any headings preceding the text of the several articles and Sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this ordinance, nor shall they affect its meaning, construction or effect; and (e) All references herein to "articles," "sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereofi Section 2. Authorization of Bonds. For the purpose of refunding the Refunded Bonds and thereby effecting a savings to the City and its taxpayers, the City shall issue its unlimited tax general obligation refunding bonds in the aggregate principal amount of $2,345,000 (the "Bonds"). The Bonds shall be designated the "City of Port Angeles, Washington, Unlimited Tax General Obligation Bonds, 2005" (the "Bonds"); shall be dated as of the date of their initial delivery to the Underwriter; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, provided that no Bond shall represent more than one maturity; shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; and shall bear interest from their date payable on the first days of each May and November, commencing on May 1, 2005 at the following per annum interest rates and mature on November 1 of the following years in the following principal amounts: Maturity Years (November 1) Principal Amounts Interest Rates 2005 $ 45,000 3.00% 2006 190,000 3.00 2007 200,000 3.00 2008 205,000 3.00 2009 215,000 3.00 2010 225,000 4.00 2011 230,000 4.00 2012 245,000 4.00 2013 255,000 4.00 2014 260,000 4.00 2015 275,000 4.00 Section 3. Registration, Exchange and Payments. (a) Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration and transfer for the Bonds approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agencies, currently including The Bank of New York in New York, New York (the "Bond Registrar"). The City shall cause the Bond Register to be maintained by the Bond Registrar. So long as any Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration of transfer of Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time at the option of the City upon prior notice to the Bond Registrar, DTC, each NRMSIR and SID, if any, and a successor Bond Registrar appointed by the City. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Bonds. (b) Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of each Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 3(h) hereof, but such Bond may be transferred as herein provided. All such payments made as described in Section 3(h) shall be valid and shall satisfy the liability of the City upon such Bond to the extent of the amount or amounts so paid. -5 - P:\DOT',DOT1 N3 05/02101 (c) DTC Acceptance/Letter of Representations. The Bonds shall initially be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City has heretofore executed and delivered to DTC the Letter o f Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds for the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC), the selection by DTC or any DTC participant of any person to receive payment in the event of a partial redemption of the Bonds, or any consent given or other action taken by DTC as the Registered Owner. For so long as any Bonds are held in fully-immobilized form hereunder, DTC or its successor depository shall be deemed to be the Registered Owner for all purposes, and all references in this ordinance to the Registered Owners shall mean DTC or its nominee and shall not mean the owners of any beneficial interest in any Bonds. (d) Use of Depository. (i) The Bonds shall be registered initially in the name of "CEDE & Co.", as nominee of DTC, with a single Bond for each maturity in a denomination equal to the total principal amount of such maturity. Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the City pursuant to subsection (ii) below or such substitute depository's successor; or (C) to any person as provided in subsection (iv) below. (ii) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the City to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the City may appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (iii) In the case of any transfer pursuant to clause (A) or (B) of subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the City, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or its nominee, all as specified in such written request of the City. (iv) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the City determines that it is in the best interest of the beneficial owners of the Bonds that the Bonds be provided in certificated form, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fully-immobilized form. The City shall deliver a written request to the Bond Registrar, together with a supply of definitive Bonds in certificated form, to issue Bonds in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are provided in such written request. (e) Transfer or Exchange of Registered Ownership; Change in Denominations. The registered ownership of any Bond may be transferred or exchanged, but no transfer of any Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bond during the period beginning at the opening of business on the 15th day of the month next preceding any interest payment date and ending at the close of business on such interest payment date, or, in the case of any proposed redemption of the Bonds, after the mailing of the notice of such redemption. (f) Bond Registrar's Ownership of Bonds. The Bond Registrar may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of Bonds. (g) Registration Covenant. The City covenants that, until all Bonds have been surrendered and cancelled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (h) Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be calculated based on a year of 360 days and twelve 30-day months. For so long as all Bonds are in fully-immobilized form, payments of principal and interest shall be made in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer in fully-immobilized form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar; provided, howver, that if so requested in writing by the Registered Owner of at least $1,000,000 principal amount of Bonds, interest will be paid by wire transfer on the interest payment date to an account with a bank located within the United States. Section 4. Redemption; Pumhase of Bonds. (a) No Optional Redemption. The Bonds are not subject to redemption prior to their stated maturities. (b) Purchase of Bonds. The City reserves the right to purchase any of the Bonds offered to the City at any time at a price deemed reasonable by the City. Section 5. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO.__ $ [BOND INSURER LEGEND] STATE OF WASHINGTON CITY OF PORT ANGELES UNLIMITED TAX GENERAL OBLIGATION BOND, 2005 INTEREST RATE: MATURITY DATE: CUSIP NO.: REGISTERED OWNER: PRINCIPAL AMOUNT: THE CITY OF PORT ANGELES, WASHINGTON (the "City"), a municipal corporation duly organized and existing under the laws of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from the date hereof, or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on the first days of each May and November, commencing on May 1, 2005. Both principal of and interest on this bond arc payable in lawful money of the United States of America. For so long as the Bonds are held in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Issuer Letter of Representations from the City to DTC. This bond is one of an authorized issue of bonds of like date and tenor, except as to number, amount, rate of interest and date of maturity, in the aggregate principal amount of $2,345,000 (the "Bonds"), issned for the purpose of refunding certain outstanding general obligation bonds of the City. The Bonds are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and ordinances duly adopted by the City Council, including Ordinance No. (the "Bond Ordinance"). Unless otherwise defined in this bond, capitalized terms used herein shall have the meanings given such terms in the Bond Ordinance. The Bonds are not subject to optional redemption prior to their stated maturities. The Bonds are not "private activity bonds" as such term is defined in the Internal Revenue Code of 1986, as amended (the "Code"). The Bonds have been designated by the City as "qualified tax-exempt obligations" under Section 265(b) of the Code for banks, thrift institutions and other financial institutions. The City hercby irrevocably covenants that, unless the principal of and interest on the Bonds are paid from other sources, it will make annual levies of taxes without limitation as to rate or amount upon all property in the City subject to taxation in amounts sufficient to pay such principal and interest as the same shall become due and shall provide for the deposit of sufficient money in the Bond Fund to pay such principal and interest. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and for the prompt payment of such principal and interest. The pledge of tax levies may be discharged prior to maturity of the Bonds by making provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by or on behalf of the Bond Registrar. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond have happened, been done and performed and that the issuance of this bond and the Bonds does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. -9- P:/DOTM3OT1N3 05102101 1N WITNESS WHEREOF, the City of Port Angeles, Washington has caused this bond to be executed by the manual or facsimile signatures of the Mayor and City Clerk and a facsimile of the seal of the City to be imprinted or otherwise reproduced hereon as of __., 2005. CITY OF PORT ANGELES, WASHINGTON By /s/manual or facsimile Mayor ATTEST: /s/manual or facsimile City Clerk The Bond Registrar's Certificate of Authentication on the Bonds shall be in substantially the following form: CERTI3'ICATE OF AUTHENTICATION Date of Authentication: This is one of the City of Port Angeles, Washington, Unlimited Tax General Obligation Bonds, 2005, dated ,2005, as described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY as Bond Registrar By /s/ Authorized Signer Section 6. Execution of Bonds. The Bonds shall be executed on behalf of the City with the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Clerk, and shall have the seal of the City impressed, imprinted or otherwise reproduced thereon. In case either or both of the officers who have signed or attested any of the Bonds cease to be such officer before such Bonds have been actually issued and delivered, such Bonds shall be valid nevertheless and may be issued by the City with the same effect as though the persons who had signed or attested such Bonds had not ceased to be such officers, and any Bond may be signed or attested on behalf of the City by officers who at the date of actual execution of such Bond are the proper officers, although at the nominal date of execution of such Bond such officer was not an officer of the City. - 1 0- P:/DOI~DOT 1 N3 0,5402101 Only Bonds that bear a Certificate of Authentication in the form set forth in Section 5, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. Section 7. Pledge of Taxes and Credit. The City hereby irrevocably covenants that, unless the principal of and interest on the Bonds are paid from other sources, it will make annual levies of taxes without limitation as to rate or amount upon all property in the City subject to taxation in amounts sufficient to pay such principal and interest as the same shall become due and shall provide for the deposit of sufficient money in the Bond Fund to pay such principal and interest. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and for the prompt payment of such principal and interest. Section 8. Defeasance. In the event that money and/or Govermnent Obligations maturing at such time or times and beating interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire part or all of the Bonds in accordance with their terms, are set aside in a special account of the City to effect such redemption and retirement, and such money and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for, and such Bonds shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the money so set aside and pledged, and such Bonds shall be deemed not to be outstanding hereunder. Within 60 days of any defeasance of Bonds, the Bond Registrar shall provide notice of such defeasance to Registered Owners, the Insurer, and to each NRMSIR and SID, if any, in accordance with Section 13. Section 9. Tax Covenants; Special Designation. The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City that may be deemed to be proceeds of such Bonds pursuant to Section 148 of the Code that will cause the Bonds to be "arbitrage bonds" within the meaning of said section and said Regulations. The City will comply with the requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) and the applicable Regulations thereunder throughout the term of the Bonds. The City further covenants that it will not take any action or permit any action to be taken that would cause the Bonds to constitute "private activity bonds" under Section 141 of the Code. The City hereby designates the Bonds as "qualified tax-exempt obligations" under Section 265(b)(3) of the Code for banks, thrift institutions and other financial institutions. The City does not anticipate issuing more than $10,000,000 in tax exempt obligations during 2005. Section 10. Refunding Account and Call for Redemption of Refunded Bonds. (a) Refunding Account. There is hereby authorized to be created in the Bond Fund an account known as the "2005 Unlimited Tax General Obligation Refunding Account" (the "Refunding Account"), which Account is to be held by the Escrow Agent and drawn upon for the sole purpose of paying the principal of and interest on the Refunded Bonds until their date of redemption and of paying costs related to issuance of the Bonds and refunding the Refunded Bonds. The proceeds of sale of the Bonds shall be credited to the Refunding Account and, together with other funds of the City, if necessary, shall be used immediately upon receipt thereof to defease the Refunded Bonds as authorized by the 1995 Bond Ordinance and pay costs of issuance and refunding. The City shall defease the Refunded Bonds and discharge such obligations by the use of money in the Refunding Account to purchase certain Government Obligations (which obligations so pumhased, are herein called the "Acquired Obligations"), bearing such interest and maturing as to principal and interest in such amounts and at such times that, together with any necessary beginning cash balance, will provide for the payment of: (i) interest on the Refunded Bonds on November 1, 2005; and (ii) the redemption price (100% of the principal amount thereof) of the Refunded Bonds on November I, 2005; The Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and regulations relating to acquired obligations in connection with refunding bond issues. (b) Escrow Agent. The City hereby appoints the corporate trust department of U.S. Bank National Association, Seattle, Washington, as the Escrow Agent for the Refunded Bonds (the "Escrow Agent"). A beginning cash balance, if any, and the Acquired Obligations shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. The proceeds of the Bonds remaining in the Refunding Account after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and expenses of the issuance of the Bonds. The City may, from time to time, transfer, or cause to be transferred, from the Refunding Account any money not thereafter required for the purposes set forth in subparagraphs (i) and (ii) of Section 10(a), subject to verification in writing by an independent certified public accountant that such transfer will not result in inadequate funds being available to make the required payments therefrom. The City reserves the right to substitute other securities for the Acquired Obligations in the event it may do so pursuant to Section 148 of the Code and applicable regulations thereunder, upon compliance with the conditions set forth in the Escrow Agreement. The City will take such actions as are found necessary to see that all necessary and proper fees and expenses of the Escrow Agent shall be paid when due. The proper officers and agents - 12 - P:/OOT~OOT~ N3 05/02/01 of the City are directed to obtain from the Escrow Agent an agreement setting forth the duties, obligations and responsibilities of the Escrow Agent in connection with the redemption and retirement of the Refunded Bonds as provided herein and setting forth such provisions for the payment of the Escrow Agent as are satisfactory to it. The Finance Director is authorized and directed to execute and deliver to the Escrow Agent an escrow agreement in form satisfactory to the Escrow Agent and approved by counsel to the City. (c) Call for Redemption of Refunded Bonds. The City hereby irrevocably sets aside sufficient funds out of the purchase of Acquired Obligations from proceeds of the Bonds to make the payments described in subparagraphs (i) and (ii) of Section lO(a). The City hereby irrevocably calls the Refunded Bonds for redemption on November 1, 2005 in accordance with the provisions of Section 4(a) of Ordinance No. 2892. The defeasance and call for redemption of the Refunded Bonds shall be irrevocable after the final establishment of the Refunding Account and delivery of the Acquired Obligations and the requisite cash deposit, if any, to the Escrow Agent, except as provided herein relating to the substitution of securities. The Escrow Agent is hereby authorized and directed to provide for the giving of notices of the redemption of the Refunded Bonds in accordance with the applicable provisions of the 1995 Bond Ordinance. The City is authorized and requested to provide whatever assistance is necessary to accomplish such redemption and the giving of notices therefor. The costs of publication of such notices shall be an expense of the City. The Escrow Agent is hereby authorized and directed to pay to the fiscal agency or agencies of the State of Washington, sums sufficient to pay, when due, the payments specified in of subparagraphs (i) and (ii) of Section 10(a). All such sums shall be paid from the money and Acquired Obligations deposited with the Escrow Agent pursuant to the previous section of this ordinance, and the income therefrom and proceeds thereof. (d) Finding of Savings and Defeasance. The Council hereby finds that the issuance and sale of the Bonds at this time will effect a savings to the City and its taxpayers. In making such finding and determination, the Council has given consideration to the interest on and the fixed maturities of the Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the known earned income from the investment of the proceeds of sale of the Bonds pending redemption and payment of the Refunded Bonds. The Council also finds that the Acquired Obligations to be deposited with the Escrow Agent and the income therefrom, together with any necessary beginning cash balance, are sufficient to redeem the Refunded Bonds and will satisfy the obligations of the City under the 1995 Bond Ordinance. Immediately upon the delivery of the Acquired Obligations to the Escrow Agent and the deposit of any necessary beginning cash balance, the Refunded Bonds shall be deemed not to be outstanding under the 1995 Bond Ordinance and shall cease to be entitled to -13- P:\DOT~DOT 1 N3 05/02/01 any lien, benefit or security under such ordinance except the right to receive payment from the Acquired Obligations and beginning cash balance so set aside and pledged. Section 11. Sale of Bonds.. The Bonds shall be sold by negotiated sale to Seattle-Northwest Securities Corporation, Seattle, Washington (the "Underwriter"), under the terms and conditions thereof as provided in its purchase contract and in this ordinance. The City Manager is hereby authorized to sign the pumhase contract on behalf of the City. The proper City officials are hereby authorized and directed to do everything necessary for the prompt execution and delivery of the Bonds to the Underwriter and for the proper application and use of the proceeds of sale thereof. Section 12. Official Statement. The City approves the preliminary Official Statement presented to this Council and ratifies the Underwfiter's distribution of the preliminary Official Statement in connection with the offering of the Bonds. To permit the Underwriter to comply with the Rule, the Preliminary Official Statement dated January __, 2005, is hereby deemed final as of its date except for the omission of information dependent upon the pricing of the Bonds and the completion of the purchase contract. The City agrees to cooperate with the Underwriter to deliver or cause to be delivered, within seven business days from the date of the sale of the Bonds and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriter, copies ora final Official Statement in sufficient quantity to comply with paragraph (b)(4) of the Rule and the rules of the MSRB. The City Manager and Finance Director are hereby authorized to review and approve on behalf of the City the final Official Statement relative to the Bonds with such additions and changes as they may deem necessary or advisable. Section 13. Undertaking to Provide Ongoing Disclosure. (a) Contract/Undertaking. This section constitutes the City's written undertaking for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule. (b) Financial Statements/Operating Data. The City agrees to provide or cause to be provided to each NRMSIR and to the SID, if any, in each case as designated by the Commission in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2005 for the fiscal year ended December 31, 2004): 1. Annual financial statements, which statements may or may not be audited, showing ending fund balances for the City's general fund prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and generally of the type included in the official statement for the Bonds under "Appendix A: City of Port Angeles 2003 Audited Financial Statements"; 2. The assessed valuation of taxable property in the City; - 1 4- P:/DOT~DOTI N3 05/02/01 3. Property taxes due, property taxes collected and property taxes delinquent; 4. Property tax levy rates per $1,000 of assessed valuation; and 5. Outstanding general obligation debt of the City. Items 2-5 shall be required only to the extent that such information is not included in the annual financial statements. The information and data described above shall be provided on or before nine months after the end of the City's fiscal year. The City's current fiscal year ends December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to each then existing NRMSIR and the SID, if any. In lieu of providing such annual financial information and operating data, the City may cross-reference to other documents provided to the NRMSIR's, the SID or to the Commission and, if such document is a final official statement within the meaning of the Rule, available from the MSRB. If not provided as part of the annual financial information discussed above, the City shall provide the City's audited annual financial statement prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statutes), when and if available, to each then existing NRMSIR and the SID, if any. (c) Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the SID, if any, and to each NRMSIR or to the MSRB notice of the occurrence of any of the following events with respect to the Bonds, if material: · Principal and interest payment delinquencies; · Non-payment related defaults; · Unscheduled draws on debt service reserves reflecting financial difficulties; · Unscheduled draws on credit enhancements reflecting financial difficulties; · Substitution of credit or liquidity providers, or their failure to perform; · Adverse tax opinions or events affecting the tax-exempt status of the Bonds; · Modifications to rights of owners; Optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34-23856; · Defeasances; · Release, substitution or sale of property securing the repayment of the Bonds; and · Rating changes. Solely for purposes of disclosure, and not intending to modify this undertaking, the City advises that no debt service reserves or property secure payment of the Bonds. (d) Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided, in a timely manner, to each NRMSIR or to the MSRB and to the SID, if any, notice of its failure to provide the annual financial information described in subsection (b) above on or prior to the date set forth in subsection (b) above. (e) Termination/Modification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the defeasance, prior redemption or payment in full of all of the Bonds. Any provision of that section shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that the portion of the Rule that requires that provision is invalid, has been repealed retroactively or otherwise does not apply to the Bonds; and (2) notifies each NRMSIR and the SID, if any, of such opinion and the cancellation of this section. The City may amend this section with an approving opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any amendment of this section, the City shall describe such amendment in the next annual report, and shall include, a narrative explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (I) notice of such change shall be given in the same manner as for a material event under Subsection (c), and (II) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if practical, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (0 DisclosureUSA. Any filing required to be made with any NRMSIR or S1D under this Section 13 may be made by transmitting such filing solely to the Texas Municipal Advisory Council (the "MAC") as provided at http://www.disclosureusa.org unless the United States Securities and Exchange Commission has withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004. (g) Bond Owner's Remedies Under This Section. The right of any bondowner or beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to obtain specific enforcement of the City's obligations under this section, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the Bonds. For purposes of this section, "beneficial owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories. (h) No Default. The City is not and has not been in default in the performance of its obligations of any prior undertaking for ongoing disclosure with respect to its bond obligations. Section 14. Bond Insurance. (a) Approval of Bond Insurance Policy. In accordance with the offer of the Underwriter to pumhase the Bonds, the Council hereby approves the commitment of XL Capital Assurance Inc. (the "Insurer") to provide a bond insurance policy guaranteeing the payment when due of principal of and interest on the Bonds (the "Bond Insurance Policy"). The Council further authorizes and directs all proper officers, agents, attorneys and employees of the City to execute a commitment letter with the Insurer and to cooperate with the Insurer in preparing such additional agreements, certificates, and other documentation on behalf of the District as shall be necessary or advisable in providing for the Bond Insurance Policy. (b) Payments Under the Bond Insurance Policy. As long as the Bond Insurance Policy is in full fome and effect, the City and the Bond Registrar shall comply with the following provisions: (i) If, on the Business Day immediately preceding a scheduled interest payment date or principal payment date ("Payment Date"), there is not on deposit with the Bond Registrar money sufficient to pay the principal of and interest on the Bonds due on such Payment Date, the City or the Bond Registrar shall give notice to the Insurer and to its designated agent (if any) (the "Insurer's Fiscal Agent"), by telephone or telecopy, of the amount of such deficiency by 12:00 noon, New York City time, on such Business Day. If, on such Payment Date, there is not on deposit with the Bond Registrar money sufficient to pay the principal of, and interest on, the Bonds due on such Payment Date, the Bond Registrar shall make a claim under the Insurance Policy and give notice to the Insurer and the Insurer's Fiscal Agent (if any) by telephone of the amount of any deficiency in the amount available to pay principal and interest, and the allocation of such deficiency between the amount required to pay interest on the Bonds and the amount required to pay principal of the Bonds, confirmed in writing to the Insurer and the Insurer's Fiscal Agent by 12:00 noon, New York City time, on such Payment Date, by delivering the Notice of Nonpayment and Certificate. For the purposes of the preceding paragraph, "Notice" means telephonic or telecopied notice, subsequently confirmed in a signed writing, or written notice by registered or certified mail, from the City or Bond Registrar to the Insurer, which notice shall specify (a) the - 17- P:/DOI~DOT1 N3 05102/01 name of the entity making the claim, (b) the policy number, (c) the claimed amount and (d) the date such claimed amount will become Due for Payment. "Nonpayment" means the failure of the City to have provided sufficient funds to the Bond Registrar for payment in full of all principal of, and interest on, the Bonds that are Due for Payment. "Due for Payment," when referring to the principal of insured bonds, means when the stated maturity date or mandatory redemption date for the application of a required sinking fund installment has been reached and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by application of required sinking fund installments or Other advancement of maturity, unless the Insurer shall elect, in its sole discretion, to pay such principal); and when referring to interest on Bonds, means when the stated date for payment of interest has been reached. "Certificate" means a certificate in form and substance satisfactory to the Insurer as to the Bond Registrar's right to receive payment under the Insurance Policy. (ii) The Bond Registrar shall designate any portion of payment of principal on Bonds paid by the Insurer at maturity on its books as a reduction in the principal amount of Bonds registered to the then current Registered Owner, whether DTC or its nominee or otherwise, and shall issue a replacement Bond to the Insurer, registered in the name of the Insurer, as the case may be, in a principal amount equal to the amount of principal so paid (without regard to authorized denominations); provided, however, that the Bond Registrar's failure to so designate any payment or issue any replacement Bond shall have no effect on the amount of principal or interest payable by the City on any Bond or the subrogation rights of the Insurer. (iii) The Bond Registrar shall keep a complete and accurate record of all funds deposited by the Insurer into the Policy Payments Account (as hereinafter defined) and the allocation of such funds to payment of interest on and principal paid with respect to any Bond. The Insurer shall have the right to inspect such records at reasonable times upon reasonable notice to the Bond Registrar. (iv) Upon payment of a claim under the Bond Insurance Policy, the Bond Registrar shall establish a separate special purpose trust account for the benefit of owners of Bonds referred to herein as the "Policy Payments Account" and over which the Bond Registrar shall have exclusive control and sole right of withdrawal. The Bond Registrar shall receive any amount paid under the Bond Insurance Policy in trust on behalf of owners of Bonds and shall deposit any such amount in the Policy Payments Account and distribute such amount only for purposes of making the payments for which a claim was made. Such amounts shall be disbursed by the Bond Registrar to owners of Bonds in the same manner as principal and interest payments are to be made with respect to the Bonds under Section 3 hereof. It shall not be necessary for such payments to be made by checks or wire transfers separate from the check or wire transfer used to pay debt service with other funds available to make such payments. Funds held in the Policy Payments Account shall not be invested by the Bond Registrar and may not be applied to satisfy any costs, expenses or liabilities of the Bond Registrar. Any funds remaining in the Policy Payments Account following an insured Bond payment date shall promptly be remitted to the Insurer. (c) Provisions Relating to Bond Insurance Policy. As long as the Bond Insurance Policy is in full force and effect, the City shall comply with the following provisions: (i) Notice to the Insurer. Any notices required to be given by the City shall also be given to the Insurer, Attn: Surveillance. (ii) Amendments. Prior written consent of the Insurer is required for any amendment to this ordinance. The City shall give the Insurer notice of any such proposed amendment. A copy of any amendment to this ordinance that is consented to by the Insurer shall be sent to Standard & Poor's Rating Services, a Division of The McGraw-Hill Companies, Inc. (iii) Remedies. The Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted to owners of the Bonds. The Insurer shall be recognized as the owner of each Bond for the purposes of exercising all rights and privileges available to owners of the Bonds. The Insurer shall have the right to institute any suit, action, or proceeding at law or in equity under the same terms as an owner of the Bonds. (iv) The Insurer as Third Party Beneficiary. The Insurer shall be a third-party beneficiary under this ordinance. (v) Subrogation. If principal and/or interest due on the Bonds is paid by the Insurer, such Bonds shall remain outstanding under this ordinance for all purposes, and shall not be deemed defeased or otherwise satisfied, or paid by the City, and the pledge of taxes and all covenants, agreements and other obligations of the City to the owners of the Bonds shall continue to exist and shall run to the benefit of the Insurer, and the Insurer shall be subrogated to the rights of such owners. Section 15. Lost or Destroyed Bonds. If any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, maturity and tenor to the Registered Owner upon such Registered Owner's paying the expenses and charges of the Bond Registrar and the City in connection with preparation and authentication of the replacement Bond or Bonds and upon his or her filing with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership, and upon furnishing the City and the Bond Registrar with indemnity satisfactory to both. Section 16. General Authorization. The appropriate officials, agents and representatives of the City are authorized to take any actions and to execute any certificates, agreements or other documents as in their judgment may be necessary or desirable to carry out the terms of, and complete the transactions contemplated by, this ordinance. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 17. Severability. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. Section 18. Effective Date. This ordinance shall become effective from and after its passage and publication as required by law. PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting thereof, held on February 1, 2005. CITY OF PORT ANGELES, WASHINGTON ATTEST: By Mayor City Clerk -20- P:~DOT~DOT1N3 05102101 CITY OF PORT ANGELES, WASHINGTON ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance of electric revenue and refunding bonds in the principal amount of $3,185,000 to refund certain outstanding electric revenue bonds of the City and to finance the cost of certain improvements to the City's Electric System; authorizing the appointment of an escrow agent and the execution of an escrow agreement related to the refunding; authorizing the terms of the bonds; establishing covenants to secure payment of the bonds; and approving the sale of the bonds. Passed February 1, 2005 Prepared by: PRESTON GATES & ELLIS LLP Seattle, Washington TABLE OFCONTENTS Page Section 1.1. Section 1.2. Section 2.1. Section 2.2. Section 2.3. Section 3.1. Section 3.2. Section 3.3. Section 3.4. Section 3.5. Section 3.6. Section 4.1. Section 4.2. Section 5.1. Section 5.2. Section 6.1. Section 6.2. Section 6.3. Section 7.1. Section 7.2. ARTICLE I DEFINITIONS Definitions ................................................................................................................ 2 Interpretation .......................................................................................................... 10 ARTICLE II FINDINGS AND DETERMINATIONS Projects ................................................................................................................... 10 Parity Conditions ................................................................................................... 11 Due Regard ................. : .......................................................................................... 12 ARTICLE III AUTHOR/ZATION AND ISSUANCE OF BONDS Authorization of 2005 Bonds ................................................................................. 12 Registration, Exchange and Payments ................................................................... 13 Redemption of 2005 Bonds ................................................................................... 15 Partial Redemption ................................................................................................. 16 Notice of Redemption ............................................................................................ 16 Purchase of 2005 Bonds ......................................................................................... 17 ARTICLE IV ISSUANCE OF ADDITIONAL BONDS Authorization of Series of Additional Bonds .................... ~ .................................... 17 Additional Bonds ................................................................................................... 18 ARTICLE V GENERAL TERMS AND PROVISIONS OF BONDS Execution of 2005 Bonds ....................................................................................... 2 ! Lost, Stolen, Destroyed or Mutilated Bonds .......................................................... 22 ARTICLE VI CREATION OF SPECIAL FUNDS AND ACCOUNTS AND PAYMENTS THEREFROM Light Fund ................................. : ............................................................................ 22 Bond Fund .............................................................................................................. 24 Investment of Funds ............................................................................................... 27 ARTICLE VII USE OF BOND PROCEEDS; PLAN OF REFUNDING Refunding Account ................................................................................................ 28 Call for Redemption of Refunded Bonds ............................................................... 29 Section 7.3. Finding of Savings and Defeasance ....................................................................... 30 Section 7.1. Construction Account ............................................................................................ 30 ARTICLE FORM OF 2005 BONDS Section 8.1. Form of 2005 Bonds .............................................................................................. 31 ARTICLE IX COVENANTS TO SECURE BONDS Sectiong. 1. Security forBonds ................................................................................................. 34 Section 9.2. Rate Covenant - General ........................................................................................ 35 Section 9.3. Rate Covenant - Debt Service Coverage ................................................................ 35 Section 9.4. Restrictions on Contracting of Obligations Secured by Revenues ........................ 36 Section 9.5. Covenant to Maintain System in Good Condition ................................................. 37 Section 9.6. Covenants Concerning Disposal of Properties of System ...................................... 37 Section 9.7. Insurance ................................................................................................................ 38 Section9.8. Books of Account .................................................................................................. 38 Section 9.9. Covenant Not to Render Service Free of Charge .................................... : .............. 39 Section 9.10. Covenant to Make Only Economically Sound Improvements ............................... 39 Section 9.11. Covenant to Pay Bond Principal and Interest Punctually ...................................... 39 Section 9.12. Covenant to Pay Taxes, Assessments and Other Claims ....................................... 40 Section 9.13. Covenant to Retain Competent Management ........................................................ 40 Section 9.14. Further Assurances ................................................................................................. 40 Section 9.15. Tax Covenants; Special Designation ..................................................................... 40 ARTICLE X SUPPLEMENTAL AND AMENDATORY ORDINANCES Section 10.1. Amendments Without Consent of Bondowners .................................................... 41 Section 10.2. Amendments With Consent of Bondowners .......................................................... 41 ARTICLE XI DEFAULTS AND REMEDIES Section 11.l. Events of Default ................................................................................................... 42 Section 11.2. Waivers of Default ................................................................................................. 43 Section 11.3. Bondowners' Trustee ............................................................................................. 43 Section 11.4. Suits at Law or in Equity ........................................................................................ 44 Section 11.5. Books of City Open to Inspection .......................................................................... 44 Section 11.6. Payment of Funds to Bondowners' Trustee ........................................................... 44 Section 11.7. Application of Funds by Bondowners' Trustee ..................................................... 45 Section 11.8. Relinquishment of Funds Upon Remedy of Default .............................................. 45 Section 11.9. Suits by Individual Bondowners ............................................................................ 46 Section 11.10. Remedies Granted in Ordinance not Exclusive ..................................................... 46 ARTICLE XII AMENDMENTS AND BONDOWNERS MEETINGS Section 12.1. Call of Bondowners Meetings ................................................................................ 46 -ii- P:IDOT~OOT1 FR 02/~1/05 Section Section Section Section Section Section Section Section Section Section Section 12.2. Notice to Bondowners ............................................................................................ 47 12.3. Proxies; Proof of Ownership of Bonds .................................................................. 47 12.4. Execution of Instruments by Bondowners ............................................................. 47 12.5. Appointment of Officers at Bondowners Meetings ............................................... 48 12.6. Quorum at Bondowners Meetings ......................................................................... 48 12.7. Vote Required to Amend Ordinance ...................................................................... 48 12.8. Obtaining Approval of Amendments at Bondowners Meeting .............................. 48 12.9. Alternate Method of Obtaining Approval of Amendments ................................... 49 12. I0. Amendment of Ordinance In Any Respect by Approval of All Bondowners ........ 50 12.11. Bonds Owned by City ............................................................................................ 50 12.12. Endorsement of Amendment on Bonds ................................................................. 50 ARTICLE xm MISCELLANEOUS, DEFEASANCE; SALE OF BONDS AND APPROVAL OF OFFICIAL STATEMENT Section 13.1. Section 13.2. Section 13.3. Section 13.4. Section 13.5. Section 13.6. Section 13.7. Section 13.8. Section 13.9. Section 13.10. Section 13.11. Section 13.12. Section 13.13. Ordinance and Laws a Contract With Bondowners ............................................... 51 Bonds Deemed No Longer to be Outstanding Hereunder ...................................... 51 Sale of 2005 Bonds ................................................................................................ 51 Official Statement .................................................................................................. 52 Undertaking to Provide Ongoing Disclosure ......................................................... 52 Municipal Bond Insurance ..................................................................................... 54 Benefits of Ordinance Limited to City, Bondowners, Insurer, and Bond Registrar ................................................................................................................. 57 Term "City" Includes Successors ........................................................................... 57 Severability ............................................................................................................ 57 General Authorization ............................................................................................ 57 Adjustment of Dollar Amounts .............................................................................. 57 Prior Acts ............................................................................................................... 58 Effective Date of Ordinance .................................................................................. 58 Exhibit A: Form of Surety Agreement -iii- P:IOO~DOT1FR 0~0'~5 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance of electric revenue and refunding bonds in the principal amount of $3,185,000 to refund certain outstanding electric revenue bonds of the City and to finance the cost of certain improvements to the City's Electric System; authorizing the appointment of an escrow agent and the execution of an escrow agreement related to the refunding; authorizing the terms of the bonds; establishing covenants to secure payment of the bonds; and approving the sale of the bonds. WHEREAS, the City of Port Angeles, Washington, a municipal corporation of the State of Washington (the "City"), owns and operates an electric utility system (the "Electric System"); and WHEREAS, there are currently outstanding $2,365,000 principal amount of the City's Electric Revenue Bonds, Series 1995 (the "1995 Bonds"), of which $2,305,000 principal amount maturing on and after September 1, 2006, may be called for redemption on September I, 2005; and WHEREAS, there are currently outstanding $2,355,000 principal amount of the City's Electric Revenue Bonds, Series 2001 (the "2001 Bonds"); and WHEREAS, it is in the best interest of the City and ratepayers of the Electric System that certain improvements be made to the Electric System (as further described herein, the "Projects") and that electric revenue bonds in the principal amount of $950,000 (the "Project Bonds") be issued to finance costs of the Projects; and WHEREAS, it is also in the best interest of the City and ratepayers of the Electric System that the callable portions of the 1995 Bonds be refunded by the issuance and sale of electric revenue refunding bonds (the "Refunding Bonds") to achieve debt service savings; and WHEREAS, the ordinances that authorized issuance of the 1995 Bonds and the 2001 Bonds provide for the issuance of additional electric revenue bonds on a parity with the 1995 Bonds and 200l Bonds on certain conditions; and WHEREAS, after due consideration it appears to the City Council of the City (the "Council") that such parity conditions can be met and that the Project Bonds and the Refunding Bonds may be combined and issued and sold as a single series (the "2005 Bonds") as provided by this ordinance; and WHEREAS, the City has received an offer from Seattle-Northwest Securities Corporation to purchase the 2005 Bonds and it is in the best interest of the City and ratepayers of the Electric System to accept such offer on the terms set forth therein and in this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN AS FOLLOWS: ARTICLE I DEFINITIONS Section 1.1. Definitions. As used in this ordinance the following words and phrases shall have the meanings set forth below unless the context shall clearly indicate that another meaning is intended. "Additional Bonds" means any Bonds issued on a parity with the 1995 Bonds, the 2001 Bonds, and the 2005 Bonds pursuant to Article IV of this ordinance. "Adjusted Net Revenues" means Net Revenues as calculated pursuant to Section 4.2.H. "Annual Debt Service" for any Fiscal Year shall mean the sum of: (a) the interest due in such Fiscal Year on all outstanding Bonds, excluding interest to be paid from the proceeds of Bonds, (b) the principal of all outstanding Serial Bonds due in such Fiscal Year, and (c) the Sinking Fund Requirement, if any, for such Fiscal Year (calculated as of the Sinking Ftmd Requirement Date for such Fiscal Year). If the interest rate on any such Bonds is other than a fixed rate, the rate applicable at the time of computation shall be used. "Average Annual Debt Service" means the amount determined by dividing (a) the sum of all interest and principal to be paid on outstanding Bonds from the date of determination to the last maturity date of such Bonds, by (b) the number of Fiscal Years from and including the Fiscal Year in which the determination is made to the last Fiscal Year in which the sum of (i) the principal amount of Serial Bonds maturing in such Fiscal Year plus (ii)the Sinking Fund Requirement for such Fiscal Year, exceeds 4% of the principal amount of Bonds outstanding as of the date of determination. If the interest rate on any such Bonds is other than a fixed rate, the rate applicable at the time of computation shall be used. "Bonds" means the 1995 Bonds, the 2001 Bonds, the 2005 Bonds and any Additional Bonds. "Bonds" may include bonds, notes, warrants, certificates of indebtedness or any other evidence o f indebtedness. "Bond Fund" means the Electric System Revenue Bond Fund established pursuant to Section 7.2 of Ordinance No. 2709 to secure payment of all Bonds. "Bond Insurance Policy" means the municipal bond insurance policy issued by the Insurer insuring the payment when due of the principal of and interest on the 2005 Bonds as provided therein. "Bondowners' Trustee" means any bank or trust company organized under the laws of any state of the United States or any national banking association hereafter appointed as trustee for Bondowners pursuant to Section 11.3 of this ordinance. "Bond Registrar" or "Registrar" means the fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York, whose duties include the registration and authentication of the 2005 Bonds, maintenance of the Bond Register, effecting transfer of ownership of the 2005 Bonds, and paying the principal of, premium, if any, and interest on the 2005 Bonds. A Supplemental Ordinance may appoint a different person, firm or entity to serve as Bond Registrar. "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of registration of the 2005 Bonds. "City" means the City of Port Angeles, Washington, a mtmicipal corporation duly organized and existing under the laws of the State of Washington. "Code" means the federal Internal Revenue Code of 1986, as amended, and applicable regulations. "Contingency and Replacement Account" means the account of that name established in the Light Fund for the purposes described in Section 6.1 .C of this ordinance. "Construction Account" means the account of that name established in the Light Fund for the purpose of providing funds to pay for improvements to the Electric System. "Council" means the City Council, as the legislative body of the City, as the same shall be duly and regularly constituted from time to time. "Director of Public Works and Utilities" means the duly appointed and acting Director of Public Works and Utilities, whose duties include management of the Electric System, or the successor to such duties. "Distribution and Transmission Facilities" means the electric utility properties and assets, real and personal, tangible and intangible, now owned and operated by the City and used or useful in the transmission, distribution or sale of electric current or electric service, and business incidental thereto, and any additions, improvements and betterments thereto and extensions thereof hereafter constructed or acquired. Distribution and Transmission Facilities shall not include Generating Facilities. "DTC" means The Depository Trust Company of New York, as depository for the 2005 Bonds, or any successor or substitute depository for the 2005 Bonds. "Electric System" means the Distribution and Transmission Facilities and any Generating Facilities hereafter acquired, but such Electric System shall not include any property and facilities as may hereafter be acquired or constructed and established as a separate utility system not financed from the Revenues except on a basis junior and inferior to the lien on Revenues pledged to pay and secure the Bonds, the revenue of which separate utility system may be pledged to the payment of revenue obligations issued to pumhase, construct, condemn or otherwise acquire such separate utility system. "Escrow Agent" means U.S. Bank National Association. "Finance Director" means the duly qualified, appointed and acting Finance Director of the City or any other officer who succeeds to the duties now delegated to that office. "Fiscal Year" means the fiscal year used by the City at any time. At the time of the adoption of this ordinance, the Fiscal Year is the twelve-month period beginning January 1 of each year and ending December 31 of each year. "Generating Facilities" means electric utility properties and assets, real and personal, tangible and intangible, and used or useful in the generation of electric energy, hereafter acquired or constructed by the City and declared to be part of the Electric System, including any common undivided interest therein, related transmission facilities, and additions, improvements and betterments to and extensions of such properties and assets. "Government Obligations" means those obligations now or hereafter defined as such in Chapter 39.53 RCW, as such chapter may be hereafter amended or restated. "Insurer" means XL Capital Assurance, Inc., a stock insurance company incorporated under the laws of the State of New York, or any successor thereto or assignee thereof, as issuer of the Bond Insurance Policy. "Letter of Representations" means the blanket issuer letter of representations from the City to DTC dated September 23, 1998. "MSRB" means the Municipal Securities Rulemaking Board or any successor to its functions. "Light Fund" means the fund of that name described in Section 6.1 of this ordinance. "Net Revenues" means, for any period, the excess of Revenues over Operating Expenses for such period, excluding from the computation of Revenues (a) any profit or loss derived from the sale or other disposition, not in the ordinary course of business, of investments or fixed or capital assets, or resulting from the early extinguishment of debt, and (b) insurance proceeds. "1995 Bond Ordinance" means Ordinance No. 2877 passed on August 1, 1995, as amended by Ordinance No. 2879 passed on August 15, 1995. "1995 Bonds" means the City's Electric Revenue Bonds, Series 1995, issued in the original principal amount of $2,760,000 pursuant to the 1995 Bond Ordinance. "2001 Bond Ordinance" means Ordinance No. 3100 passed on October 16, 2001. "2001 Bonds" means the City's Electric Revenue Refunding Bonds, Series 2001, issued in the o~iginal principal amount of $2,560,000 pursuant to the 2001 Bond Ordinance. "2005 Bonds" means the City's Electric Revenue and Refunding Bonds, Series 2005, authorized to be issued in the aggregate principal amount of $3,185,000 pursuant to this ordinance. "NRMSIR" means a nationally recognized municipal securities information repository. "Operating Expenses" means (i) the City's expenses for operation and maintenance of the Electric System, and ordinary repairs, renewals, replacements and reconstruction of the Electric System, including all costs of delivering electric power and energy and payments (other than payments out of Bond proceeds) into reasonable reserves in the Light Fund for items of Operating Expenses the payment of which is not immediately required, and shall include, without limiting the generality of the foregoing, all costs of purchased power, costs of transmission and distribution operation and maintenance expenses, rents, administrative and general expenses, engineering expenses, legal and financial advisory expenses, required payments to pension, retirement, health and hospitalization funds, insurance premiums and any taxes, assessments, or payments in lieu of taxes, all to the extent properly allocable to the Electric System; (ii)any current expenses required to be paid by the City under the provisions of this ordinance or by law, all to the extent properly allocable to the Electric System; and (iii) the fees and expenses of any Paying Agent. Operating Expenses shall not include any costs or expenses for new construction or other capital outlays, interest, amortization of debt service on any evidence of indebtedness, any allowance for depreciation, or any payments for City taxes or payments in lieu of City taxes. "Ordinance," as used in Articles XI and XII hereof, means Ordinance Nos. 2877, 2879, 3 I00, this ordinance, and any Supplemental Ordinance. "Paying Agent" or "Paying Agents" means the Bond Registrar, with respect to the 2005 Bonds, and the paying agent for each other series of outstanding Bonds. "Permitted Investments" means the following, to the extent that the same are legal for investment of funds of the City: A. The following obligations may be used as Permitted Investments for all purposes, including defeasance investments in the refunding escrow accounts. (1) Cash (insured at all times by the Federal Deposit Insurance Corporation. (2) Obligations of, or obligations guaranteed as to principal and interest by, the U.S. or any agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the U.S. including: · U.S. Treasury obligations · All direct or fully guaranteed obligations · Farmers Home Administration · General Services Administration · Guaranteed Title XI financing · Government National Mortgage Association (GNMA) · State and Local Government Series (SLGS) (3) Obligations of Govemment-Sponsored Agencies that are not backed by the full faith and credit of the U.S. Govemment: · Federal Home Loan Mortgage Corp. (FHLMC) Debt obligations · Farm Credit System (formerly: Federal Land Banks, Federal Intermediate Credit Banks, and Banks for Cooperatives) · Federal Home Loan Banks (FHL Banks) · Federal National Mortgage Association (FNMA) Debt obligations · Resolution Funding Corp. (REFCORP) Debt obligations Any security used for defeasance must provide for the timely payment of principal and interest and cannot be callable or prepayable prior to maturity or earlier redemption of the rated debt (excluding securities that do not have a fixed par value and/or whose terms do not promise a fixed dollar amount at maturity or call date). U.S.A.I.D. securities must mature at least four business days before the appropriate payment date. B. The following Obligations shall be Permitted Investments for all purposes other than defeasance investments in refunding escrow accounts. (1) Obligations of any of the following federal agencies which obligations represent the full faith and credit of the United States of America, including: · Export-Import Bank · U.S. Maritime Administration · U.S. Department of Housing & Urban Development (PHAs) · Federal Housing Administration · Federal Financing Bank; (2) Direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America: · Senior debt obligations issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC). · Obligations of the Resolution Funding Corporation (REFCORP) · Senior debt obligations of the Federal Home Loan Bank System · Senior debt obligations of other Government Sponsored Agencies approved by Ambac and the Insurer (3) U.S. dollar denominated deposit accounts, federal funds and bankers' acceptances with domestic commemial banks which have a rating on their short term certificates of deposit on the date of purchase of "P-I" by Moody's and "A-I" or "A-l+" by S&P and maturing no more than 360 calendar days after the date of purchase. (Ratings on holding companies are not considered as the rating of the bank); (4) Commercial paper which is rated at the time of purchase in the single highest classification, "P-I" by Moody's and "A-l+" by S&P and which matures not more than 270 days after the date of purchase; (5) better by S&P; Investments in a money market fund rated "AAAm" or "AAAm-G" or (6) Pre-refunded Municipal Obligations defined as follows: any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice; and (A) which are rated, based on an irrevocable escrow account or fund (the "escrow"), in the highest rating category of Moody's and S&P or any successors thereto; or (B) (i) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in paragraph A(2) above, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (ii)which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and -7- P:\DOT~DOTIFR 02~1,'~5 redemption premium, if any, on the bonds or other obligations described in this paragraph on the · maturity date or dates specified in the irrevocable instructions referred to above, as appropriate; (7) Municipal obligations rated "Aaa/AAA" or general obligations of States with a rating of"Aa2/AA" or higher or both Moody's and S&P; (8) Investment agreements approved in writing by the Insurer and the insurer of the 2001 Bonds and supported by appropriate opinions ofcotmsel; and (9) Other forms of investments (including repurchase agreements) approved in writing by the Insurer and the insurer of the 2001 Bonds. C. The value of the above investments shall be determined as follows: (a) For the purpose of determining the amount in any fund, all Permitted Investments credited to such fund shall be valued at fair market value. The City shall determine the fair market value based on accepted industry standards and from accepted industry providers. Accepted industry providers shall include but are not limited to pricing services provided by Financial Times Interactive Data Corporation, Merrill Lynch, Salomon Smith Barney, Bear Steams, or Lehman Brothers; (b) As to certificates of deposit and bankers' acceptances: the face amount thereof, plus accrued interest thereon; (c) As to any investment not specified above: the value thereof established by prior agreement between the City and the Insurer and the insurer of the 2001 Bonds; (d) Any investment or investment agreement permitted for funds of the City under the laws of the State of Washington, as amended from time to time, which are approved by Insurer and the insurer of the 2001 Bonds. "Professional Utility Consultant" means the independent person(s) or firm(s) selected by the City having a favorable reputation for skill and experience with generation, transmission and distribution systems of comparable size and character to the Electric System in such areas as are relevant to the purposes for which they are retained. "Project Bonds" means the $950,000 principal amount of electric revenue bonds authorized to be issued pursuant to this ordinance to pay costs of the Projects. "Projects" means those improvements to the Electric System authorized by Section 2.1 of this ordinance. "Qualified Insurance" means any non-cancellable municipal bond insurance policy or surety bond issued by any insurance company licensed to conduct an insurance business in any state of the United States (or by a service corporation acting on behalf of one or more such insurance companies), which insurance company or companies, as of the time of issuance of such policy or surety bond, are currently rated in one of the two highest rating categories by Moody's Investors Service, Inc. or Standard & Poor's Corporation or both Moody's Investors' Service, Inc., and Standard & Poor's Corporation if such institution is rated by both or their comparably recognized business successors. "Qualified Letter of Credit" means any irrevocable letter of credit issued by a financial institution for the account of the City on behalf of the owners of one or more series of Bonds, which institution maintains an office, agency or branch in the United States and as of the time of issuance of such letter of credit is currently rated in one of the two highest rating categories by Moody's Investors Service, Inc. or Standard & Poor's Corporation or their comparably recognized business successors or both Moody's Investors Service, Inc. and Standard & Poor's Corporation if such institution is rated by both or their comparably recognized business successors. "Refunded Bonds" means the 1995 Bonds maturing on and after September 1, 2006. "Refunding Account" means the City of Port Angeles 2005 Electric Revenue Refunding Account authorized to be created and held by the Escrow Agent pursuant to Section 7.1 of this ordinance. "Refunding Bonds" means $2,235,000 principal amount of electric revenue bonds, authorized to be issued pursuant to this ordinance to refund the Refunded Bonds. "Registered Owner' means the person named as the registered owner of a Bond in the Bond Register. For so long as the 2005 Bonds are held in book-entry only form, DTC shall be deemed to be the sole Registered Owner. "Revenues" means all income (including investment income), receipts and revenues derived by the City through the ownership and operation of the Electric System but shall not include: (a) any income derived by the City through the ownership and operation of any facilities that may hereafter be purchased, constructed or otherwise acquired by the City as a separate utility system; or (b) investment income restricted to a particular purpose inconsistent with its use for the payment of debt service, including investment income derived pursuant to a plan of debt retirement or refunding. "Rule" means the Commission's Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. "Serial Bonds" means Bonds other than Term Bonds. "SI])" means a state information depository for the State of Washington. "Sinking Fund Requirement" for any Fiscal Year means the principal amount of Term Bonds required to be purchased, redeemed or paid in such Fiscal Year as established by the ordinance of the City authorizing the issuance of such Term Bonds. "Sinking Fund Requirement Date" means, for any Fiscal Year, the date by which the Sinking Fund Requirement for such Fiscal Year must be met, which with respect to the 2005 Bonds shall be October 1. "Supplemental Ordinance" means any ordinance amending, modifying or supplementing the provisions of this ordinance, including any ordinance providing for the issuance of Additional Bonds. "Surety Bond" means the surety bond, satisfying the definition of "Qualified Insurance," issued by the Insurer guaranteeing certain payments into the Reserve Account for the Bonds as provided therein and subject to the limitations therein. "Surety Agreement" means the Financial Guaranty Agreement with respect to the Surety Bond dated as of the date of delivery of the Bonds, between the District and the Insurer, authorized to be executed in substantially the form attached as Exhibit A to this ordinance. "Term Bonds" means Bonds of any principal maturity that are subject to mandatory redemption and for which mandatory sinking fund payments are required. The 2005 Bonds maturing on September 1, 2020 shall be deemed "2005 Term Bonds." "Underwriter" means Seattle-Northwest Securities Corporation. Section 1.2. Interpretation. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Words imparting the singular number shall include the plural numbers and vice versa unless the context shall otherwise indicate. Reference to Articles, Sections and other subdivisions of this ordinance are to the Articles, Sections and other subdivisions of this ordinance as originally adopted unless expressly stated to the contrary. The headings or titles of the Articles and Sections hereof, and the Table of Contents appended hereto, are for convenience of reference only and shall not define or limit the provisions hereofi ARTICLE II FIND1NGS AND DETERMINATIONS Section 2.1. Projects. The Council hereby approves the acquisition, development and construction of the improvements to the Electric System included or to be included for 2005 in the City's Capital Facilities Plan. The estimated cost of the Projects is .$925,000. In undertaking the Projects, the City shall acquire and install all equipment and appurtenances necessary for their proper operation and shall acquire by purchase, lease or condemnation all property, both real and personal, or any interest therein, and all rights-of-way, franchises, and easements necessary to complete the Projects. The Projects shall be subject to such changes as to size or location or any other details as may be authorized by the City either prior to or during the course of construction. The City may also elect to substitute for one or more of the Projects any other Electric System improvements, approved by the Council, that are now or may hereafter be included in the City's Capital Facilities Plan. Section 2.2. Par/tv Conditions. The 1995 Bond Ordinance and 2001 Bond Ordinance provide that the City may issue Additional Bonds payable from the Bond Fund on a parity with the 1995 Bonds and 2001 Bonds upon compliance with certain conditions. The Council hereby finds, as required by such provisions of the 1995 Bond Ordinance and 2001 Bond Ordinance, as follows: (i) There is no deficiency in the Bond Fund and no Event of Default has occurred and is continuing. (ii) The Refunding Bonds are being issued to refund the Refunded Bonds, and the proceeds of the Refunding Bonds, together with other funds of the City, if necessary, and the principal of and the interest on the investment of such proceeds or any such funds, shall be sufficient to pay the principal of and the redemption premium, if any, on the Refunded Bonds to be refunded and the interest that will become due and payable on or prior to the date of their payment or redemption, and the expenses incident to the issuance of the Refunding Bonds. (iii) Prior to delivery of the Refunding Bonds, there shall be filed with the City a certificate signed by the Finance Director showing that the Annual Debt Service for any Fiscal Year thereafter shall not be increased by more than $5,000 by reason of the issuance of the Refunding Bonds. (iv) Prior to delivery of the Project Bonds, there shall be filed with the City a certificate signed by the Finance Director showing: (A) the amount of the Net Revenues for any 12 consecutive months of the 24 months prior to the date of the issuance of the Project Bonds; (B) the amount of the Average Annual Debt Service in any Fiscal Year thereafter on account of the unrefunded 1995 Bonds, the 2001 Bonds, the Refunding Bonds and the Project Bonds; and (C) the percentage derived by dividing the amount shown in (A) above by the amount shown in (B) above, which percentage shall be not less than 125%. The Additional Bonds tests of the 1995 Bond Ordinance and 2001 Bond Ordinance having been complied with or assured, the lien and charge on Revenues for the payment of the principal of and interest on the Refunding Bonds and Project Bonds shall be equal to the lien and charge thereon for the payment of principal of and interest on the 1995 Bonds and 2001 Bonds. Section 2.3. Due Regard. The Council hereby finds and determines that due regard has been given to the cost of the operation and maintenance of the Electric System and that it has not obligated the City to set aside into the Bond Fund for the account of the 2005 Bonds a greater amount of the revenues and proceeds of the Electric System than in its judgment will be available over and above such cost of maintenance and operation and the cost of paying and securing the payment of the unrefunded 1995 Bonds and the 2001 Bonds. ARTICLE III AUTHORIZATION AND ISSUANCE OF BONDS Section3.1. Authorization of 2005 Bonds. The Refunding Bonds are hereby authorized to be issued in the aggregate principal amount of $2,235,000 to refund the Refunded Bonds and pay the costs of issuing the Refunding Bonds. The Project Bonds are hereby authorized to be issued in the aggregate principal amount of $950,000 to finance costs of the Projects and pay costs of issuing the Project Bonds. The Refunding Bonds and the Project Bonds shall be issued as a combined series designated as the City's Electric Revenue and Refunding Bonds, Series 2005 (the "2005 Bonds"), which shall be dated as of the date of their initial delivery to the Underwriter, shall bear interest from their date at such rates per annum and shall mature on September 1 of such years and in such amounts as follows: Year Amount Interest Rate * Term Bond 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2020* 2021 2022 2023 2024 2025 $ 90,000 110 000 110 000 115 000 125 000 125 000 130 000 135 000 140,000 145,000 155,000 155,000 165,000 530,000 190,000 195,000 205,000 215,000 150,000 3.00% 3.00 3.00 3.00 3.00 4.00 4.00 4.00 4.00 4.00 3.75 3.75 3.80 4.00 4.05 4.10 4.20 4.25 4.30 - 12- P:\DOI~DOT1FR 02J01/05 The 2005 Bonds shall be fully registered as to both principal and interest, shall be in denominations of $5,000 or any integral multiple thereof, provided that no 2005 Bond shall represent more than one maturity, and shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification. Interest on the 2005 Bonds shall be payable semiannually on March 1 and September 1 of each year, beginning September 1, 2005. Section 3.2. Registration, Exchange and Pawnents. A. Bond Registrar/Bond Register. The City hereby specifies and adopts the system of registration and transfer for the 2005 Bonds approved by the Washington State Finance Committee from time to time through the appointment of state fiscal agencies, currently including The Bank of New York in New York, New York (the "Bond Registrar"). The City shall cause the Bond Register to be maintained by the Bond Registrar. So long as any 2005 Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration of transfer of 2005 Bonds at its principal corporate trust office. The Bond Registrar may be removed at any time at the option of the City upon prior notice to the Bond Registrar, DTC, the Insurer, each NRMSIR and SID, if any, and a successor Bond Registrar appointed by the City. No resignation or removal of the Bond Registrar shall be effective until a successor shall have been appointed and until the successor Bond Registrar shall have accepted the duties of the Bond Registrar hereunder. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver 2005 Bonds transferred or exchanged in accordance with the provisions of such 2005 Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication on the 2005 Bonds. B. Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of each 2005 Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such 2005 Bond shall be made only as described in Section 3.2.H hereof, but such 2005 Bond may be transferred as herein provided. All such payments made as described in Section 3.2.H shall be valid and shall satisfy the liability of the City upon such 2005 Bond to the extent of the amount or amounts so paid. C. DTC Acceptance/Letter of Representations. The 2005 Bonds shall initially be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the 2005 Bonds as eligible for deposit at DTC, the City has heretofore executed and delivered to DTC the Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the 2005 Bonds for the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC), the selection by DTC or any DTC participant of any person to receive payment in the event of a partial redemption of the 2005 Bonds, or any consent given or other action taken by DTC as the Registered Owner. For so long as any Bonds are held in fully-immobilized form hereunder, DTC or its successor depository shall be deemed to be the Registered Owner for all purposes, and all references in this ordinance to the Registered Owners shall mean DTC or its nominee and shall not mean the owners of any beneficial interest in any Bonds. D. Use of Depository. (i) The 2005 Bonds shall be registered initially in the name of "CEDE & Co.", as nominee of DTC, with a single 2005 Bond for each maturity in a denomination equal to the total principal amount of such maturity. Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (B)to any substitute depository appointed by the City pursuant to subsection (ii) below or such substitute depository's successor; or (C) to any person as provided in subsection (iv) below. (ii) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the City to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the City may appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provide the services proposed to be provided by it. (iii) In the case of any transfer pursuant to clause (A) or (B) of subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the City, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or its nominee, all as specified in such written request of the City. (iv) In the event that (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the City determines that it is in the best interest of the beneficial owners of the 2005 Bonds that the 2005 Bonds be provided in certificated form, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and shall no longer be held in fully-immobilized form. The City shall deliver a written request to the Bond Registrar, together with a supply of definitive Bonds in certificated form, to issue Bonds in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are provided in such written request. E. Transfer or Exchange of Registered Ownership; Change in Denominations. The registered ownership of any Bond may be transferred or exchanged, but no transfer of any Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond - 14- P:\DOT~DOTI FR 02/01/05 Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bond during the period beginning at the opening of business on the 15th day of the month next preceding any interest payment date and ending at the close of business on such interest payment date, or, in the case of any proposed redemption of the 2005 Bonds, after the mailing of the notice of such redemption. F. Bond Registrar's Ownership of 2005 Bonds. The Bond Registrar may become the Registered Owner of any 2005 Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of 2005 Bonds. G. Registration Covenant. The City covenants that, until all 2005 Bonds have been surrendered and cancelled, it will maintain a system for recording the ownership of each 2005 Bond that complies with the provisions of Section 149 of the Code. H. Place and Medium of Payment. The principal of and interest on the 2005 Bonds shall be payable in lawful money of the United States of America. Interest on the 2005 Bonds shall be calculated on the basis of a 360-day year and twelve 30-day months. For so long as all 2005 Bonds are in fully-immobilized form, such payments of principal and interest thereon shall be made in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the 2005 Bonds are no longer in fully-immobilized form, interest on the 2005 Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the interest payment date; provided, however, that if so requested in writing by the Registered Owner of at least $1,000,000 principal amount of 2005 Bonds, interest will be paid by wire transfer on the interest payment date to an account with a bank located within the United States. Principal of the 2005 Bonds shall be payable upon presentation and surrender of such 2005 Bonds by the Registered Owners at the principal office of the Bond Registrar. Section3.3. Redemptionof2005 Bonds. A. Optional Redemption. The 2005 Bonds maturing in years 2005 through 2014 are not subject to redemption prior to maturity. The 2005 Bonds maturing on and after September 1, 2015 are subject to redemption prior to maturity, at the option of the City, on or after September 1, 2014, in whole or in part on any date (maturities to be selected by the City), at a price of par plus interest accrued thereon to the date fixed for redemption. For so long as the 2005 Bonds are in book-entry form, the selection of 2005 Bonds within a maturity to be redeemed and the manner Of providing notice of redemption to beneficial owners shall be governed by the operational arrangements of DTC, as then in effect. B. Mandatory Redemption. The 2005 Bonds maturing on September 1, 2020, shall be redeemed prior to maturity by lot (or purchased or paid at maturity), not later than September 1 in the years 2018 through 2020, inclusive, from amounts credited to the Bond Retirement Account in the Bond Fund as sinking fund installments therefor (to the extent such amounts have not been used to redeem or purchase such 2005 Bonds as provided in this ordinance) and in the principal amounts as set forth below, upon written notice as provided in Section 3.5 of this ordinance, by payment of the principal amount thereof, together with the interest accrued thereon to the date fixed for redemption. Year Amount 2018 $170,000 2019 175,000 2020 185,000 The foregoing amounts shall be deemed Sinking Fund Requirements for the 2005 Bonds maturing on September 1, 2020 (the "2005 Term Bonds"). The City may purchase and redeem 2005 Term Bonds through the application of part or all of the respective Sinking Fund Requirements therefor on the first day of any month prior to any September 1. Any money not so used to purchase and redeem such 2005 Term Bonds shall be applied to the redemption of such bonds on such September 1. If, as of any September 1, the principal amount of 2005 Term Bonds retired by purchase (through application of Sinking Fund Requirements or any other legally available funds) or redemption exceeds the cumulative Sinking Fund Requirement through such date, such excess may be credited against the Sinking Fund Requirement for the next Fiscal Year. Section 3.4. Partial Redemption. If less than all of the principal amount of any 2005 Bond is redeemed, upon surrender of such 2005 Bond at the principal office of the Bond Registrar, there shall be issued to the Registered Owner, without charge, for the then unredeemed balance of the principal amount, a new 2005 Bond or 2005 Bonds, at the option of the Registered Owner, of like maturity and interest rate in any authorized denomination. Section 3.5. NoticeofRedemption. A. Official Notice. Written notice of any redemption of 2005 Bonds shall be given by the Bond Registrar on behalf of the City by first class mail, postage prepaid, not less than 30 days nor more than 60 days before the redemption date to the Registered Owners of 2005 Bonds that are to be redeemed at their last addresses shown on the Bond Register. So long as the 2005 Bonds are in book-entry form, notice of redemption shall be given as provided in the Letter - 16- P:\DO~DOT1 FR 02/01105 of Representations. The Bond Registrar shall provide additional notice of redemption (at least 30 days) to each NRMSIR and SID, if any, in accordance with Section 13.5. The requirements of this section shall be deemed complied with when notice is mailed, whether or not it is actually received by the owner. Each notice of redemption shall contain the following information: (1) the redemption date, (2) the redemption price, (3) if less than all outstanding 2005 Bonds are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the 2005 Bonds to be redeemed, (4) that on the redemption date the redemption price will become due and payable upon each 2005 Bond or portion called for redemption, and that interest shall cease to accrue from the redemption date, (5)that the 2005 Bonds are to be surrendered for payment at the principal office of the Bond Registrar, (6)the CUSIP numbers of all 2005 Bonds being redeemed, (7) the dated date of the 2005 Bonds, (8) the rate of interest for each 2005 Bond being redeemed, (9) the date of the notice, and (10) any other information needed to identify the 2005 Bonds being redeemed. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and maturity, the 2005 Bonds being redeemed with the proceeds of such check or other transfer. B. Effect of Notice. Unless the City has revoked a notice of redemption, the City shall transfer to the Bond Registrar amounts that, in addition to other money, if any, held by the Bond Registrar, will be sufficient to redeem, on the redemption date, all the 2005 Bonds to be redeemed. From the redemption date interest on each 2005 Bond to be redeemed shall cease to accrue. C. Amendment of Notice Provisions. The foregoing notice provisions of this section, including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes in order to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. Section 3.6. Purchase of 2005 Bonds. The City also reserves the right to purchase any of the 2005 Bonds offered to the City at any time at a price deemed reasonable by the City. ARTICLE IV ISSUANCE OF ADDITIONAL BONDS Section 4.1. Authorization of Series of Additional Bonds. Before any series of Additional Bonds shall be issued under the provisions of this Article, the City shall adopt an ordinance or ordinances authorizing the issuance of such bonds, fixing the amount and the details thereof, describing in brief and general terms the purpose or purposes for which such bonds are to be issued and specifying the amount, if any, of the proceeds of such - l 7- P:\DO~DOT1FR 02/01/05 bonds to be deposited to the credit of the construction or project fund created with respect to such bonds or to another fund for the payment of capitalized interest on such bonds and to the Reserve Account; provided, however, that deposits to the Reserve Account shall be made as required under Section 6.2.C hereofi The bonds of each series issued under the provisions of this Section shall be designated "Electric Revenue Bonds, Series ", shall be in such denominations, shall be dated, shall bear interest at a rate or rates (including variable rates) not exceeding the maximum rate then permitted by law, shall be payable, both as to principal and interest, at such place or places, shall mature in such year or years, shall be made redeemable at such times and prices (subject to the provisions of this ordinance), shall be numbered, shall have such Paying Agents, and any Term Bonds of such series shall have such amortization requirements, all as may be provided by ordinance or ordinances adopted by the City prior to the issuance of such bonds. Section 4.2. Additional Bonds. A. Additional Bonds may be issued payable from the Bond Fund on a parity with the Bonds and secured by an equal charge and lien on the Revenues pledged to the Bond Fund for any lawful purpose of the City, including the refunding of outstanding Bonds; provided that, (i) except as to Bonds issued pursuant to Section 4.2.E hereof, at the time of the issuance of such Additional Bonds, there is no deficiency in the Bond Fund, and no Event of Default has occurred and is continuing, and (ii) the requirements of the applicable provisions of this Section 4.2 are complied with. B. Additional Bonds may be issued for any lawful purpose of the City if the following requirements are met. A certificate signed by the Finance Director shall set forth: (i) the amount of the Net Revenues for any 12 consecutive months of the 24 months prior to the date of the issuance of such Bonds; (ii) the amount of the Average Annual Debt Service in any Fiscal Year thereafter on account of all Bonds then outstanding under this ordinance and the Additional Bonds then to be issued hereunder; and (iii) the pementage derived by dividing the amount shown in (i) above by the amount shown in (ii) above, and shall state that such percentage is not less than 125%; C. Additional Bonds may also be issued for any lawful purpose of the City if the following requirements are met. A certificate signed by a Professional Utility Consultant and filed with the City Clerk shall set forth: (i) the amount of the Adjusted Net Revenues computed as provided in Section 4.2.H; (ii) the amount of the Average Annual Debt Service thereafter on account of all Bonds then outstanding under this ordinance and the Additional Bonds then to be issued hereunder; and - I 8 - P:IDOT~DOI'I FR 02/01105 (iii) as to the applicable Fiscal Year under (ii) above, the pementage derived by dividing the amount shown in (i) above by the amount shown in (ii) above, and shall state that such percentage is not less than 125%. Additional Bonds may be issued pursuant to Subsections E and F of this Section 4.2 without complying with the provisions of this Subsection C. D. Additional Bonds may also be issued for the purpose of paying part of the costs of Distribution and Transmission Facilities .or Generating Facilities for which Bonds have theretofore been issued, if a certificate is signed by a Professional Utility Consultant and filed with the City Clerk, which (i) shall comply with the requirements of paragraph C above or (ii) shall state that the issuance of such Additional Bonds is necessary to complete such facilities and that the completion is necessary for the efficient and economic operation of the Electric System; provided, however, that the principal amount of such Additional Bonds may not exceed ! 5% of the principal amount of the Bonds theretofore issued for such facilities. E. Additional Bonds may also be issued from time to time for the purpose of providing funds, together with any other available funds, for retiring at or prior to their maturity or maturities any or all of the outstanding Bonds of any series, including the payment of any redemption premium thereon, and, if deemed necessary by the City, for paying the interest to accrue thereon to the date fixed for their retirement and any expenses incident to the issuance of such Additional Bonds. F. Additional Bonds issued under subsection E above shall not be delivered unless the proceeds (excluding any accrued interest but including any premium) of such Additional Bonds, together with any other money that has been made available for such purposes, and the principal of and the interest on the investment of such proceeds or any such money, shall be sufficient to pay the principal of and the redemption premium, if any, on the Bonds to be refunded and the interest that will become due and payable on or prior to the date of their payment or redemption, and the expenses incident to the issuance of such Additional Bonds. If such Additional Bonds are to be issued pursuant to Section 4.2.F above, (1) there shall be filed with the City a certificate signed by the Finance Director showing that the Annual Debt Service for any Fiscal Year thereafter shall not be increased by more than $5,000 by reason of the issuance of the Additional Bonds; or (2) There shall be filed with the City a certificate signed by a Professional Utility Consultant setting forth: (a) the amount of the Adjusted Net Revenues computed as provided in Section 4.2.I; -1 9- P:\DOT~DOT1FR 0~01~5 (b) the amount of the Average Annual Debt Service in any Fiscal Year thereafter on account of all Bonds to be outstanding in such Fiscal Year and the Additional Bonds then to be issued hereunder; and (c) stating that the amount shown in (a) above is not less than 125% of the amount shown in (b) above. G. In rendering any certificate under this Section, the Professional Utility Consultant may rely upon, and such certificate shall have attached thereto, (I) financial statements of the Electric System, certified by the chief financial officer thereof, showing income and expenses for the period upon which the same are based and a balance sheet as of the end of such period, or (2) similar certified statements by the Division of Municipal Corporations of the Office of the State Auditor of the State of Washington (or any successor thereto), or (3) similar certified statement by an independent certified public accountant, if any, for as much of said period as any examination by them has been made and completed. If two or more of such statements are inconsistent with each other, the Professional Utility Consultant shall rely on the statement described under (1) above. In connection with the issuance of any Bonds pursuant to subsections 4.2.C, 4.2.D and 4.2.G of this Section, the certificate of the Professional Utility Consultant hereinabove referred to shall be conclusive and the only evidence required to show compliance with the provisions and requirements of said subsection. H. For the purposes of the certificates required by Sections 4.2.C and 4.2.G of this ordinance, Adjusted Net Revenues shall be computed by the Professional Utility Consultant as follows: (a) The Net Revenues for any 12 consecutive months (selected by the City) out of the 24 months prior to the date of issuance of the Additional Bonds (such 12-month period being herein called the "Base Period") may be adjusted: (i) to reflect any changes in Net Revenues for the Base Period which would have occurred if the schedule of rates and charges in effect at the time of the computation (or approved by the Council as of the time of such computation and to become effective within 12 months thereof) had been in effect during the portion of the Base Period in which such schedule was not in effect; (ii) to reflect a full 12 months of Net Revenues fi.om any customers of the Electric System added prior to the computation date; and (iii) to reflect any changes in Net Revenues estimated to be received fi.om residences and businesses that are in existence as of the date of issuance of such Additional Bonds and that are expected to connect to the Electric System as a result of, and upon completion of, any facilities under construction or to be acquired, constructed or installed as a part of the Electric System fi.om the proceeds of any Bonds. I. Nothing contained herein shall prevent the City from refunding at one time all of the Bonds then outstanding. Nothing contained herein shall prevent the City from issuing obligations payable from a lien on the Revenues that is junior and inferior to the Bonds. J. Additional Bonds may be issued from time to time without complying with the requirements set forth above if, in the opinion of the Professional Utility Consultant, as evidenced by a certificate filed with the City, it is necessary to repair any damage or loss to the Electric System or if the Electric System has been destroyed or-damaged by disaster or unanticipated event to such an extent that it cannot be operated; provided, however, that the proceeds of any Additional Bonds issued for such purpose may only be used to return the Electric System to, or to maintain the Electric System at, substantially its former or then operating capacity; and provided further, that in the case of repair, such Additional Bonds may be issued only to the extent that insurance proceeds from such damage or loss are insufficient for the accomplishment of such purpose. So long as the 2005 Bonds remain outstanding, the consent of the Insurer must be obtained prior to the issuance of Additional Bonds pursuant to this Section 4.2.J. K. In calculating Annual Debt Service for purposes of this Section, if the interest rate on any Bonds is other than a fixed rate, the rate applicable at the time of computation shall be used unless such rate is less than the most recently published Bond Buyer's Revenue Bond Index for municipal revenue bonds, in which case the rate stated by such index shall be used. If such index is no longer published, another nationally recognized index for municipal revenue bonds maturing in 20 to 30 years shall be used. ARTICLE V GENERAL TERMS AND PROVISIONS OF BONDS Section 5.1. Execution of 2005 Bonds. The 2005 Bonds shall be executed on behalf of the City with the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Clerk, and shall have the seal of the City impressed, imprinted or otherwise reproduced thereon. In case either or both of the officers who have signed or attested any of the 2005 Bonds cease to be such officer before such 2005 Bonds have been actually issued and delivered, such 2005 Bonds shall be valid nevertheless and may be issued by the City with thc same effect as though the persons who had signed or attested such 2005 Bonds had not ceased to be such officers, and any 2005 Bond may be signed or attested on behalf of the City by officers who at the date of actual execution of such 2005 Bond are the proper officers, although at the nominal date of execution of such 2005 Bond such officer was not an officer of the City. Only 2005 Bonds that bear a Certificate of Authentication in the form set forth in Section 8, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the 2005 Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. -2 ] - P:\OOT~DOT1 FR 02J01/05 Section 5.2. Lost or Destroyed Bonds. If any 2005 Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new 2005 Bond or 2005 Bonds of like amount, maturity and tenor to the Registered Owner upon such Registered Owner's paying the expenses and charges of the Bond Registrar and the City in connection with preparation and authentication of the replacement 2005 Bond or 2005 Bonds and upon his or her filing with the Bond Registrar and the City evidence satisfactory to both that such 2005 Bond or 2005 Bonds were actually lost, stolen or destroyed and of his or her ownership, and upon furnishing the City and the Bond Registrar with indemnity satisfactory to both. ARTICLE VI CREATION OF SPECIAL FUNDS AND ACCOUNTS AND PAYMENTS THEREFROM Section 6.1. Light Fund. A. A special fund of the City has heretofore been created pursuant to Ordinance No. 374 passed by the City Council on May 5, 1910, and designated the "Light Fund." Said Light Fund shall be maintained and continued in existence, and shall be held and administered by the City. The City covenants and agrees that it will pay or cause to be paid all Revenues into the Light Fund as promptly as practicable after receipt thereof. There have heretofore been created the following accounts in the Light Fund: (i) the General Account, (ii) the Contingency and Replacement Account, and (iii) the Rate Stabilization Account. Such accounts shall be held and used for the purposes hereinafter described. B. The Revenues of the City shall be deposited and credited to the following accounts in the Light Fund and used only for the following purposes and in the following order of priority: (1) All Revenues paid into the Light Fund shall first be credited to the General Account therein and applied as follows: (i) to pay Operating Expenses and to provide sufficient working capital for the operation of the Electric System; (ii) to make all payments required to be made into the Interest Account in the Bond Fund for the payment of accrued interest on the next interest payment date; (iii) to make all payments required to be made into the Principal Account in the Bond Fund for the payment of the principal amount of Serial Bonds next coming due, and into the Bond Retirement Account in the Bond Fund for the mandatory redemption of Term Bonds; (iv) to make all payments required to be made into the Reserve Account in the Bond Fund created to secure the payment of the Bonds; and (v) to make all payments required to be made into any special fund or account created to pay or secure the payment of the principal of and interest on any revenue bonds, warrants or other revenue obligations of the City having a lien upon Revenues and money in the Light Fund and Bond Fund and accounts therein junior and inferior to the lien thereon for the payment of the principal of and interest on the Bonds. (2) To the extent that surplus Revenues remain after the payments so required to be made out of the General Account, the City shall credit to the Contingency and Replacement Account in each Fiscal Year an amount equal to at least 25% of the Annual Debt Service in such Fiscal Year. (3) To the extent that surplus Revenues remain after the payments so required to be made out of the General Account and the credit to the Contingency and Replacement Account, the City may credit up to the full amount of such surplus to the Rate Stabilization Fund. (4) After all of the above payments and credits have been made, amounts remaining in the General Account may be used for any other lawful purpose of the Light Fund. Any credits from the General Account pursuant to subsections (2) and (3) above, and any credits to the General Account from the Rate Stabilization Account made pursuant to Section 9.3 hereof, shall be made prior to closing the books and accounts of the City for each Fiscal Year. C. Money in the Contingency and Replacement Account shall be used from time to time to make up any deficiencies in the Reserve Account, and such money in the Contingency and Replacement Account is hereby pledged as additional payment to the Bond Fund to the extent required for any such deficiencies. Money in the Contingency and Replacement Account may be used to make additions, betterments, extensions, renewals, replacements and other capital improvements to the Electric System, to retire Bonds, or may be used by the City for any other lawful purpose of the City, but may not be paid directly into the Rate Stabilization Account. The Rate Stabilization Account is created in anticipation of future increases in revenue requirements. Funds in the Rate Stabilization Account may be transferred to the General Account to accommodate part or all of those future revenue requirement increases. Money in the Rate Stabilization Account may be used for any lawful purpose. Money in the Rate Stabilization Account shall be used from time to time to make up any deficiencies in the Bond Fund, and such money in the Rate Stabilization Account is hereby pledged as additional payments to the Bond Fund to the extent required for any such deficiencies. Nothing contained in this Section 6.1 shall be construed to require the deposit into the Light Fund of any of the revenues, income, receipts or other money of the City derived by the City through the ownership or operation of any separate utility system hereafter created or established from funds other than the proceeds of Bonds. Section 6.2. Bond Fund. Pursuant to Ordinance No. 2709, a special fund of the City has heretofore been created and designated the "Electric System Revenue Bond Fund" (the "Bond Fund"). The Bond Fund shall be held in trust and administered by the City and shall be used solely for the purposes of paying the principal of, premium, if any, and interest on the Bonds, and retiring the Bonds prior to maturity in the manner herein provided. The City hereby obligates and binds itself irrevocably to set aside and to pay (to the extent not otherwise provided) from money in the Light Fund into the Bond Fund, after paying or making provision for Operating Expenses and prior to the payment of any other charge or obligation against such Revenues, amounts sufficient to pay the principal of, premium, if any, and interest on all the Bonds from time to time outstanding as the same respectively become due and payable, either at the maturity thereof or in accordance with the terms of any Sinking Fund Requirement established for the retirement of Term Bonds. The fixed amounts to be paid into the Bond Fund, to the extent that such payments are not made from Bond proceeds or from other money which may legally be available therefor, shall be as follows and in the following order of priority, to wit: A. There has been created in the Bond Fund, for the purpose of paying the interest on Bonds as the same becomes due and payable, a Bond Interest Account (the "Interest Account"). No later than the last day of the month in which any Bonds are delivered to the initial purchasers thereof and on or before the 25th day of each month thereafter, the City shall pay from the Light Fund into the Bond Fund to the credit of the Interest Account an amount such that, if the same amount were so paid and credited to the Interest Account on the 25th day of each of the months preceding the next date upon which an installment of interest falls due on the Bonds, the aggregate of the amounts so paid and credited to the Interest Account would on such date be equal to the installment of interest then falling due on all Bonds then outstanding. B. There has been created in the Bond Fund, for the purpose of paying outstanding Serial Bonds as they mature and for the purpose of redeeming Term Bonds pursuant to the Sinking Fund Requirement pertaining to such Term Bonds, the following accounts each of which are equal in priority: (i) The Bond Principal Account, for the purpose of paying outstanding Serial Bonds as they mature (the "Principal Account"). No later than the 25th day of the 12th month prior to each Serial Bond maturity, or if there are less than 12 months preceding such maturity then no later than the last day of the month immediately succeeding the month in which the Bonds are delivered to the initial purchaser(s) thereof, and on or before the 25th day of each month thereafter, the City shall pay from the Light Fund into the Bond Fund to the credit of the Principal Account an amount such that, if the same amount were so paid and credited to the Principal Account on the 25th day of each succeeding month thereafter and prior to such Serial Bond maturity date, the aggregate of the amounts so paid and credited to the Principal Account would on such date be equal to the principal amount of Serial Bonds then falling due. -24- P:~DOT~DOT1FR 02101105 (ii) The Bond Retirement Account, for the purpose of redeeming Term Bonds pursuant to the Sinking Fund Requirement pertaining to such Term Bonds and to otherwise retire Bonds prior to maturity (hereinafter referred to as the "Bond Retirement Account"). No later than the 25th day of the 12th month prior to the date of each Sinking Fund Requirement, or if there are less than 12 months preceding such Sinking Fund Requirement Date, then on the last day of the month immediately succeeding the month in which the Bonds are delivered to the initial purchaser(s) thereof, and on or before the 25th day of each succeeding month thereafter, the City shall pay from the Light Fund into the Bond Fund to the credit of the Bond Retirement Account an amount such that, if the same amount were so set aside in the Bond Fund and credited to the Bond Retirement Account on the 25th day of each succeeding month thereafter and prior to such Sinking Fund Requirement Date, the aggregate of the amounts so paid and credited to the Bond Retirement Account would be equal to the Sinking Fund Requirement for such date. The City shall apply all the money paid into the Bond Fund for credit to the Bond Retirement Account to the redemption of Term Bonds on the next ensuing Sinking Fund Requirement Date (or may so apply such money prior to such Sinking Fund Requirement Date), pursuant to the terms of this ordinance or of the Supplemental Ordinance authorizing the issuance thereofi The City may also apply the money paid into the Bond Fund for credit to the Bond Retirement Account for the purpose of retiring Term Bonds by the purchase of such Bonds at a purchase price (including accrued interest and any brokerage charge) not in excess of the principal amount thereof, in which event the principal amount of such Bonds so purchased shall be credited against the next ensuing Sinking Fund Requirement. If as of any September 1 the principal amount of the 2005 Term Bonds retired by purchase or redemption exceeds the cumulative amount required to have been redeemed by sinking fund installments on or before such September 1, then such excess may be credited against the Sinking Fund Requirement for the 2005 Term Bonds for the following Fiscal Year. Any such purchase of Bonds by the City may be made with or without tenders of Bonds in such manner as the City shall, in its discretion, deem to be in its best interest. C. There has been created a "Bond Reserve Account" in the Bond Fund (the "Reserve Account"). Upon the issuance of the 2005 Bonds, the City shall obtain Qualified Insurance in an amount that, together with other funds, if any, on deposit in the Reserve Account, shall equal at least Average Annual Debt Service for the then outstanding Bonds. In the event of the issuance of any Additional Bonds, the Supplemental Ordinance authorizing the issuance of such Additional Bonds shall provide for approximately equal monthly payments into the Bond Fund for credit to the Reserve Account from the money in the Light Fund, in such amounts and at such times so that by no later than three years from the date of issuance of such Additional Bonds there will be credited to the Reserve Account an amount equal to the Average Annual Debt Service at the date of issuance of such Additional Bonds; provided, however, that the proceedings authorizing the issuance of Additional Bonds may provide for payments into the Bond Fund for credit to the Reserve Account from the proceeds of such Additional Bonds or from any other money lawfully available therefor, in which event, in providing for deposits and credits r~quired by the foregoing provisions of this paragraph, allowance shall be made for any such amounts so paid into such Account. Subject to the two preceding sentences, the money and value of Permitted Investments in the Reserve Account shall be determined as of the last business day of each Fiscal Year and maintained at an amount at least equal to the Average Annual Debt Service, except where it is necessary for the City to make a transfer therefrom to the Interest Account, Principal Account or Bond Retirement Account because of an insufficiency of money therein to make any required payment of principal of or interest on any Bonds when due. The City shall make up any deficiencies in such account arising because of such transfer, or because of an insufficient value of money and Permitted Investments in such account, in not more than 18 approximately equal consecutive monthly installments into the Reserve Account. If at any time the money and value of Permitted Investments in the Reserve Account shall exceed the amount of money and value of Permitted Investments then required to be maintained therein by 10%, such excess may be transferred to the General Account in the Light Fund. For the purposes of valuation of Permitted Investments pursuant to this Section 6.2.C, the value of Permitted Investments shall be computed as follows: (a) the value of obligations which mature within six months from the date of purchase thereof shall be the purchase price of such obligations; and (b) the value of obligations which mature more than six months after the date of purchase thereof shall be the lesser of (i) the principal or face amount of such obligations, or (ii) the bid quotation price thereof as of the fifth business day next preceding the date of such determination as reported in The Wall Street Journal, or in the event such newspaper is not published or such price is not reported in said newspaper, in a newspaper of general circulation or a financial journal published in the Borough of Manhattan, City and State of New York, or (iii) the price at which such obligations are then redeemable by the owner at his option. The computations made under this paragraph shall not include accrued interest. In making the payments and credits to the Principal Account, Interest Account, Bond Retirement Account and Reserve Account required by this Section 6.2, to the extent that such payments are made from Bond proceeds, from money in any capitalized interest account, or from other money that may legally be available, such payments are not required to be made from the Light Fund. The City may elect to meet the requirements of this Section 6.2.C with respect to the Reserve Account through the use of a Qualified Letter of Credit, Qualified Insurance or other equivalent credit enhancement device currently rated in one of the two highest rating categories by Moody's Investors Service, Inc. or Standard & Poor's Rating Services. The City may contract with the entity providing such Qualified Letter of Credit, Qualified Insurance or other equivalent credit enhancement device that the City's reimbursement obligation, if any, to such entity ranks on a parity of lien with the Bonds. In the event that the City elects additionally to secure any issue of Additional Bonds through the use of a Qualified Letter of Credit, Qualified Insurance or other equivalent credit enhancement device, the City may contract with the entity providing such Qualified Letter of Credit, Qualified Insurance or other equivalent credit enhancement device that the City's -26- P:IE~O~DOTIFR 0Z~1/05 reimbursement obligation, if any, to such entity ranks on a parity of lien with outstanding Bonds; provided that the payments due under such reimbursement agreement are such that if such reimbursement obligation were a series of Additional Bonds, such Bonds could be issued in compliance with the provisions of Article 1V hereof. In making the payments and credits to the Reserve Account required by this Section 6.2, to the extent that the City has obtained Qualified Insurance or a Qualified Letter of Credit for specific amounts required pursuant to this section to be paid out of the Reserve Account, such amounts so covered by Qualified Insurance or a Qualified Letter of Credit shall be credited against the amounts required to be maintained in the Bond Reserve Account by this Section 6.2.C to the extent that such payments and credits to be made are insured by an insurance company, or guaranteed by a letter of credit from a financial institution. Upon the expiration of any Qualified Letter of Credit or the termination of any Qualified Insurance, the Reserve Account shall be funded in accordance with the third paragraph of this Section 6.2.C as if the Bonds that remain outstanding had been issued on the date of such notice of expiration or termination. D. In the event that there shall be a deficiency in the Interest Account, Principal Account or Bond Retirement Account in the Bond Fund, the City shall promptly make up such deficiency from the Reserve Account by the withdrawal of cash therefrom for that purpose and by the sale or redemption of obligations held in the Reserve Account, if necessary, in such amounts as will provide cash in the Reserve Account sufficient to make up any such deficiency. The City covenants and agrees that any deficiency created in the Reserve Account by reason of any withdrawal therefrom for payment into the Interest Account, Principal Account or Bond Retirement Account shall be made up from money in the Light Fund available after making provision first for payment of Operating Expenses and then for the required payments into such Interest, Principal and Bond Retirement Accounts. Money in the Bond Fund shall be transmitted to the Paying Agents in amounts sufficient to meet the maturing installments of principal of, premium, if any, and interest on the Bonds when due. Whenever the assets of the Bond Fund shall be sufficient to provide money to retire all Bonds then outstanding, including such interest thereon as thereafter may become due and payable and any premiums upon redemption thereof, no further payments need be made into the Bond Fund. All money remaining in the Bond Fund after provision for the payment in full of the principal of, premium, if any, and interest on the Bonds shall be returned to the Light Fund. The Bond Fund shall be drawn upon solely for the purpose of paying the principal of, premium, if any, and interest on the Bonds. Money set aside from time to time with the Paying Agents for such payment shall be held in trust for the owners of the Bonds in respect of which the same shall have been so set aside. Until so set aside, all money in the Bond Fund shall be held in trust for the benefit of the owners of all Bonds at the time outstanding equally and ratably. Section 6.3. Investment of Funds. Money held for the credit of the Interest Account, Principal Account and Bond Retirement Account in the Bond Fund shall, to the fullest extent practicable and reasonable, be invested and reinvested at the direction of the City solely in, and obligations deposited in such accounts shall consist of, investments described in clauses A(1), -27- P:\DOTXDOT1 FR 02101,05 A(2), A(3), B(1), B(2) and B(3) of the definition of Permitted Investments which shall mature prior to the respective dates when the money held for the credit of such Accounts will be required for the purposes intended. Money in the Reserve Account in the Bond Fund not required for immediate disbursement for the purposes for which such Account is created shall, to the fullest extent practicable and reasonable, be invested and reinvested at the direction of the City solely in, and obligations deposited in the Reserve Account shall consist of investments described in clauses A(1), A(2), A(3), B(1), B(2) and B(3) of the definition of Permitted Investments, maturing or subject to redemption at the option of the owner thereof within 20 years from the date of such investment (but maturing prior to the final maturity date of the Bonds then outstanding). Money in the Light Fund and any arbitrage rebate fund not required for immediate disbursement for the purposes for which such Funds were created shall, to the fullest extent practicable and reasonable, be invested and reinvested by the City in Permitted Investments; provided, however, that so long as the 1995 Bonds remain outstanding, investments in any capitalized interest account hereafter created shall be those described in clauses A(1), A(2), A(3), B(1), B(2) and B(3) of the definition of Permitted Investments. Except to the extent there are deficiencies in any account in the Bond Fund, all income received from the investment of money in the Bond Fund and the Light Fund shall be from time to time deposited in the Light Fund. All money held or set aside by the City in the Light Fund Revenue Fund and Bond Fund shall, until otherwise invested or applied as provided in this ordinance, be deposited by the City in its name, for the account of the Light Fund (and the appropriate account therein) or the Bond Fund (and the appropriate account therein), as the case may be, in such depositary or depositaries as the City shall at any time or from time to time appoint for such purpose. All money so deposited shall be secured in the manner prescribed by the laws of the State of Washington for the securing of funds of the City. When no Bonds are insured, City funds may be invested in any manner permitted by Washington law. ARTICLE VII USE OF BOND PROCEEDS; PLAN OF REFUNDING Section 7.1. Refunding Account. There is hereby authorized to be created in the Bond Fund an account known as the "City of Port Angeles 2005 Electric Revenue Refunding Account" (the "Refunding Account"), which Account is to be held by the Escrow Agent and drawn upon for the sole purpose of paying the principal of and interest on the Refunded Bonds until their date of redemption and of paying costs related to the refunding of the Refunded Bonds. The proceeds of sale of the Refunding Bonds shall be credited to the Refunding Account and, together with other funds of the City, if necessary, shall be used immediately upon receipt thereof to defease the Refunded Bonds as authorized by the 1995 Bond Ordinance and pay costs -28- P:\DO~DOTIFR 02/01/05 of issuance. The City shall defease the Refunded Bonds and discharge such obligations by the use of money in the Refunding Account to purchase certain Government Obligations (which obligations so pumhased, are herein called "Acquired Obligations"), bearing such interest and maturing as to principal and interest in such amounts and at such times that, together with any necessary beginning cash balance, will provide for the payment off (i) interest on the Refunded 1995 Bonds as it becomes due and payable through and including September 1,2005; and (ii) the redemption price (100% of the principal amount thereof) of the Refunded 1995 Bonds on September 1, 2005. Such Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and regulations relating to acquired obligations in connection with refunding bond issues. The City hereby appoints the corporate trust department of U.S. Bank National Association, Seattle, Washington as the Escrow Agent for the Refunded Bonds (the "Escrow Agent"). A beginning cash balance, if any, and Acquired Obligations shall be deposited irrevocably with the Escrow Agent in an amount sufficient to defease the Refunded Bonds. The proceeds of the Bonds remaining in the Refunding Account after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and expenses of the issuance of the Bonds. The City may, from time to time, transfer, or cause to be transferred, from the Refunding Account any money not thereafter required for the purposes set forth in subparagraphs (i) -- (ii) above, subject to verification in writing by an independent certified public accountant that such transfer will not result in inadequate funds being available to make the required payments therefrom. The City reserves the right to substitute other securities for the Acquired Obligations in the event it may do so pursuant to Section 148 of the Code and applicable regulations thereunder, upon compliance with the conditions set forth in the Escrow Agreement. Section 7.2. Call for Redemption of Refunded Bonds. The City hereby irrevocably sets aside sufficient funds out of the purchase of Acquired Obligations from proceeds of the 2005 Bonds to make the payments described in Subsection (a)(i) - (ii) of Section 7.1. The City hereby irrevocably calls the Refunded Bonds for redemption on September 1, 2005 in accordance with the applicable provisions of the 1995 Bond Ordinance. The defeasance and call for redemption of the Refunded Bonds shall be irrevocable after the final establishment of the Refunding Account and delivery of the Acquired Obligations and the requisite cash deposit, if any, to the Escrow Agent, except as provided herein relating to the substitution of securities. The Escrow Agent is hereby authorized and directed to provide for the giving of notices of the redemption of the Refunded Bonds in accordance with the applicable provisions of the -2 9- P:\DOT~DOT1 FR 02101 1995 Bond Ordinance. The City is authorized and requested to provide whatever assistance is necessary to accomplish such redemption and the giving of notices therefor. The costs of publication of such notices shall be an expense of the City. The Escrow Agent is hereby authorized and directed to pay to the fiscal agency or agencies of the State of Washington, sums sufficient to pay, when due, the payments specified in of subsections (i) - (ii) of Section 7.1 of this ordinance. All such sums shall be paid from the money and Acquired Obligations deposited with said Escrow Agent pursuant to the previous section of this ordinance, and the income therefrom and proceeds thereof. The City will take such actions as are found necessary to see that all necessary and proper fees and expenses of the Escrow Agent shall be paid when due. The proper officers and agents of the City are directed to obtain from the Escrow Agent an agreement setting forth the duties, obligations and responsibilities of the Escrow Agent in connection with the redemption and retirement of the Refunded Bonds as provided herein and setting forth such provisions for the payment of the Escrow Agent as are satisfactory to it. The Finance Director is authorized and directed to execute and deliver to the Escrow Agent an escrow agreement in form satisfactory to the Escrow Agent and approved by counsel to the City. Section 7.3. Finding of Savings and Defeasance. The Council hereby finds that the issuance and sale of the 2005 Bonds at this time will effect a savings to the City and its taxpayers. In making such finding a~.d determination, the Council has given consideration to the interest on and the fixed maturities of the 2005 Bonds and the Refunded Bonds, the costs of issuance of the 2005 Bonds and the known earned income from the investment of the proceeds of sale of the 2005 Bonds pending redemption and payment of the Refunded Bonds. The Council also finds that the Acquired Obligations to be deposited with the Escrow Agent and the income therefrom, together with any necessary beginning cash balance, are sufficient to redeem the Refunded Bonds and will discharge and satisfy the obligations of the City under the 1995 Bond Ordinance. Immediately upon the delivery of such Acquired Obligations to the Escrow Agent and the deposit of any necessary beginning cash balance, the Refunded Bonds shall be deemed not to be outstanding under the 1995 Bond Ordinance and shall cease to be entitled to any lien, benefit or security under such ordinance except the right to receive payment from the Acquired Obligations and beginning cash balance so set aside and pledged. Section 7.4. Construction Account. There is hereby authorized to be created in the office of the Finance Director a special subaccount within the Construction Account to be designated as the "City of Port Angeles 2005 Electric System Construction Subaccount" (the "2005 Construction Subaccount"). Proceeds of the Project Bonds shall be deposited into the 2005 Construction Subaccount and applied to pay costs of the Projects and costs of issuance of the Project Bonds. Money in the 2005 Construction Subaccount shall be invested in Permitted Investments; provided, however, that any investments of funds in any capitalized interest account hereafter created shall be those described in clauses A(1), A(2), A(3), B(1), B(2) and B(3) of the definition of Permitted Investments. Funds remaining in the 2005 Construction Subaccount after -30- P:\DOT~DOTIFR 02101/05 the Projects have been completed shall be deposited into the Contingency and Replacement Account. ARTICLE VIII FORM OF 2005 BONDS Section 8.1. Form of 2005 Bonds. The 2005 Bonds shall be in substantially the following form: [Bond Insurance Legend] UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PORT ANGELES, WASHINGTON ELECTRIC REVENUE AND REFUNDING BOND, SERIES 2005 INTEREST RATE: REGISTERED OWNER: MATURITY DATE: CUSIP NO.: PRINCIPAL AMOUNT: The City of Port Angeles, Washington (the "City"), hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from ., 2005, or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on the first days of each March and September, commencing on September 1, 2005. Both principal of and interest on this bond are payable in lawful money of the United States of America. For so long as the this bond is held in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Issuer Letter of Representations from the City to DTC. Principal of and interest and premium, if any, on this bond are payable solely out of the special fund of the City known as the "Electric System Revenue Bond Fund" (the "Bond Fund") created and established by Ordinance No. 2709, passed on September 1, 1992. This bond is one of a duly authorized series of bonds aggregating $3,185,000 in principal amount and designated as "Electric System Revenue and Refunding Bonds, Series 2005" (the "Bonds"). The Bonds are issued under and pursuant to Ordinance No. , passed on February 1, 2005 (the "Bond Ordinance"), and under the authority of and in full compliance with the Constitution and laws of the State of Washington. Unless otherwise defined on this Bond, capitalized terms used herein shall have the meanings given them in the Bond Ordinance. The Bonds are issued for the purpose of financing certain improvements to facilities of the Electric System and refunding certain outstanding electric revenue bonds of the City. The Bond Ordinance permits the issuance of Additional Bonds payable from the Bond Fund ranking on a parity with the Bonds and secured by an equal charge and lien on the Revenues of the Electric System (as such terms are defined in the Bond Ordinance). Copies of the Bond Ordinance are on file at the principal office of the City and at the principal office of the Bond Registrar, and reference thereto, and to any and all modifications and amendments thereof, is hereby made for a more complete description of the Revenues available for the payment of the principal of, premium, if any, and interest on the Bonds and the rights and remedies of the owners of the Bonds with respect thereto, the terms and conditions upon which the Bonds have been issued, and the terms and conditions upon which this Bond shall no longer be secured by the Bond Ordinance or deemed to be outstanding hereunder if money or certain specified securities sufficient for the payment of this Bond shall have been set aside in a special account and held in trust solely for the payment thereof. Under the Bond Ordinance, the City is obligated to set aside and pay into the Bond Fund out of the Revenues of the Electric System, certain fixed amounts sufficient to pay the principal of and interest and premium, if any, on all Bonds and any bonds at any time outstanding issued on a parity therewith payable from such Fund as the same become due and payable, all as is more fully provided in the Bond Ordinance. The Bonds and any bonds issued on a parity therewith payable from the Bond Fund and the interest thereon constitute the only charge against the Bond Fund and the amount of the Revenues pledged to said Bond Fund. The City has covenanted to establish, maintain and collect rates or charges for electric energy and other services, facilities and commodities sold, furnished or supplied by the Electric System of the City that shall be fair and nondiscriminatory and adequate to provide Revenues sufficient for the fixed amounts that the City is obligated to set aside in the Bond Fund to pay the principal of and interest and premium, if any, on this Bond and the series of Bonds of which this Bond is a part, and any other bonds payable from said Fund on a parity with the Bonds and for the proper operation and maintenance of the Electric System, and all necessary repairs thereto and replacements and renewals thereof. The Bonds are subject to optional and mandatory redemption in accordance with the Bond Ordinance. This bond shall be transferable by the registered owner at the principal offices of the Bond Registrar upon surrender and cancellation of this Bond, and thereupon a new registered Bond of the same principal amount and interest rate and maturity will be issued to the transferee as provided in the Bond Ordinance. The City, the paying agents and any other person may treat the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment hereof and for all purposes and shall not be affected by any notice to the contrary, whether this Bond be overdue or not. The City has designated the Bonds as qualified tax-exempt obligations for investment by certain financial institutions. -32- P:~DOT~DOT1 FR 02/01/05 This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. It is hereby certified, recited and declared that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened and to have been performed precedent to and in the issuance of this bond do exist, have happened and have been performed in due time, form and manner as prescribed by law, and that the amount of this bond, together with all other obligations or indebtedness of the City, does not exceed any constitutional or statutory limitations of indebtedness. IN WITNESS WHEREOF, the City of Port Angeles, Washington, has caused this bond to be executed by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of the City Clerk, and the seal of the City to be imprinted or reproduced hereon, all as of ,2005. CITY OF PORT ANGELES, WASHINGTON /si Mayor (SEAL) Attest: City Clerk /s/ Date of Authentication: CERTIFICATE OF AUTHENTICATION This is one of the Electric Revenue and Refunding Bonds, Series 2005, of the City of Port Angeles, Washington, dated ,2005, as described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto __ PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE (Please print or typewrite name and address, including zip code, of Trmlsferee) the within bond and does hereby irrevocably constitute and appoint of , or its successor, as Bond Registrar to transfer said bond on the books kept for registration thereof with full power of substitution in the premises. DATED: SIGNATURE GUARANTEED: NOTE: The signature on this Assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. ARTICLE IX COVENANTS TO SECURE BONDS The City covenants and agrees with the purchasers and owners of all Bonds, so long as any such Bonds are outstanding, as follows: Section 9.1. Security for Bonds. All Bonds are special limited obligations of the City payable from and secured solely by Revenues, and by other money and assets specifically pledged hereunder for the payment thereof. There are hereby pledged as security for the payment of the principal of, premium, if any, and interest on all Bonds in accordance with the provisions of this ordinance, subject only to the provisions of this ordinance restricting or permitting the application thereof for the purposes and on the terms and conditions set forth in this ordinance: (i) the Revenues, and (ii) the money and investments, if any, credited to the Light Fund, the -34- PSDOT~[:)OT1FR 02/01/05 Construction Account and the Bond Fund, and the income therefrom. The Revenues and other money and securities hereby pledged shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the City regardless of whether such parties have notice thereof. All Bonds now or hereafter outstanding shall be equally and ratably payable and secured hereunder without priority by reason of date of adoption of the ordinance providing for their issuance or by reason of their series, number or date of sale, issuance, execution or delivery, or by the liens, pledges, charges, trusts, assignments and covenants made herein, except as otherwise expressly provided or permitted in this ordinance and except as to insurance which may be obtained by the City to insure the repayment of one or more series or maturities within a series. The pledge of the Revenue and of the amounts to be paid into and maintained in the funds and accounts described above in this Section to pay and secure the payment of Bonds is hereby declared to be a prior lien and charge on the Revenues and the money and investments in such funds and accounts, subject to provision for operating capital and to the payment of Operating Expenses as provided in Section 6.1 .B hereof, and superior to all other liens and charges of any kind or nature. Bonds shall not in any manner or to any extent constitute general obligations of the City or of the State of Washington, or any political subdivision of the State of Washington, or a charge upon any general fund or upon any money or other property of the City or of the State of Washington, or of any political subdivision of the State of Washington, not specifically pledged thereto by this ordinance. Section 9.2. Rate Covenant - General. The City will establish, maintain and collect rates and charges for electric power and energy and other services, facilities and commodities sold, fumished or supplied through the facilities of the Electric System that shall be fair and nondiscriminatory and adequate to provide Revenues sufficient, together with other funds legally available therefor, for the punctual payment of the principal of, premium, if any, and interest on the Bonds for which the payment has not otherwise been provided, for all payments that the City is obligated to make into the Bond Fund, and for the proper operation and maintenance of the Electric System, and all necessary repairs, replacements and renewals thereof, including the payment of all taxes, assessments or other governmental charges lawfully imposed on the Electric System or the Revenues therefrom, or payments in lieu thereof, and the payment of all other amounts which the City may now or hereafter become obligated to pay from the Revenues by law or contract. Section 9.3. Rate Covenant - Debt Service Coverage. The City will also establish, maintain and collect rates and charges that shall be adequate to provide in each Fiscal Year Net Revenues in an amount equal to at least 1.25 times the Annual Debt Service on the then outstanding Bonds in such Fiscal Year. For the purpose of meeting the requirement of this paragraph, (i) there may be added to Net Revenues for any Fiscal Year such amount, withdrawn -35- P;IDOT~DOT1FR 02/01/05 from the Rate Stabilization Account and deposited in the General Account, and (ii) there must be subtracted from Net Revenues for any Fiscal Year such amounts as are withdrawn from the General Account and deposited into the Rate Stabilization Account for such Fiscal Year. The City also covenants and agrees to maintain Net Revenues for the then current Fiscal Year in an amount that will be equal to the Annual Debt Service on the then outstanding Bonds in such Fiscal Year. The failure to collect Revenues in any Fiscal Year sufficient to comply with the covenants contained in this Section 9.3 shall not constitute an Event of Default if the City, before the 60th day of the following Fiscal Year: A. Employs a Professional Utility Consultant to recommend changes in the City's rates that are estimated to produce Revenues sufficient (once the rates recommended by the Professional Utility Consultant have been imposed by the City) to meet the requirements of this Section; and B. Promptly imposes rates at least as high as those recommended by such Professional Utility Consultant. The calculation of the coverage requirements set forth above, and in Section 4.2 hereof, and the City's compliance therewith, may be made solely with reference to this ordinance without regard to future changes in generally accepted accounting principles. If the City has changed one or more of the accounting principles used in the preparation of its financial statements, because of a change in generally accepted accotmting principles or otherwise, then an event of default relating to these coverage requirements shall not be considered an Event of Default if the coverage requirement ratios would have been complied with had the City continued to use those accounting principles employed at the date of the most recent audited financial statements prior to the date of this ordinance. Section 9.4. Restrictions on Contracting of Obligations Secured by Revenues. A. The City will not hereafter create any other special fund or funds for the payment of revenue bonds, warrants or other revenue obligations, or issue any bonds, warrants or other obligations or create any additional indebtedness that will rank on a parity with or prior to the charge and lien on the Revenues or properties of the Electric System for the payments into the Bond Fund, except as provided under Article 1V hereof. B. Additional Bonds may be issued as provided in Article iV. C. The City may issue bonds, notes, warrants or other obligations payable from and secured by a lien on the Revenues of the Electric System that is subordinate or inferior to the lien on such Revenues securing the Bonds and may create a special fund or funds for payment of such subordinate obligations. D. Unless such agreement specifically states that the obligation of the City thereunder is junior to the obligation of the City to make payments from the Light Fund into the Bond Fund, the City shall not hereafter enter into any agreement obligating the City to pay, from Revenues, for (a) generating or transmission capacity or the use or lease of generating or transmission facilities, which agreement is not conditional on the availability of such capacity or facility, or (b) the installment pumhase or lease of property which, whether or not subject to armual appropriations, otherwise transfers to the City the burdens and benefits of ownership of such property. Section 9.5. Covenant to Maintain System in Good Condition. The City shall at all times maintain, preserve and keep, or cause to be maintained, preserved and kept, the properties of the Electric System and all additions and betterments thereto and extensions thereof and every part thereof, in good repair, working order and condition, and will from time to time make, or cause to be made, all necessary and proper repairs, renewals, replacements, extensions and betterments thereto so that at all times the business carried on in connection therewith shall be properly and advantageously conducted. The City will at all times operate such properties and the business in connection therewith or cause such properties and business to be operated in an efficient manner and at a reasonable cost. Section 9.6. Covenants Concerning Disposal of Properties of System. The City shall not sell, mortgage, lease or otherwise dispose of the properties of the Electric System except as provided in this Section. A. The City will not sell or otherwise dispose of the Electric System in its entirety unless simultaneously with such sale or other disposition, provision is made for the payment, redemption or other retirement of all Bonds then outstanding. B. Except as provided in C below, the City will not sell or otherwise dispose of any part of the Electric System unless provision is made for the payment, redemption or other retirement of a principal amount of Bonds equal to the greater of the following amounts, provided, such amount is in excess of $100,000: (1) An amount that will be in the same proportion to the net principal amount of Bonds then outstanding (defined as the total principal amount of Bonds outstanding less the amount of cash and investments in the Bond Fund) that the Revenues attributable to the part of the Electric System sold or disposed of for the twelve preceding months bears to the total Revenues for such period; or (2) An amount that will be in the same proportion to the net principal amount of Bonds then outstanding that the book value of the part of the Electric System sold or disposed of bears to the book value of the entire Electric System immediately prior to such sale or disposition. -37- P:IDOTtDOT1F R 02/0t/05 The City shall only be required to comply with the requirements of subsections (1) and (2) above if the proceeds of such sale, lease or other disposition shall exceed 2% of the value of the net utility plant of the Electric System. C. The City may sell or otherwise dispose of any part of the Electric System that shall have become unserviceable, inadequate, obsolete or unfit to be used in the operation of the Electric System, or no longer necessary, material to or useful in such operation, and may also sell or otherwise dispose of street lighting systems now or hereafter owned by the City at a price permitted by law. The proceeds of any such sale or disposition pursuant to this subsection C shall be paid into the Bond Fund for credit to the Reserve Account to the extent of any deficiency in such Reserve Account, and the balance of such proceeds, if any, shall be deposited in the Light Fund. D. Notwithstanding any other provision of this Section 9.6 to the contrary, the City may sell or otherwise dispose of any part of the Electric System if the City obtains a certificate satisfying the requirements of Section 4.2.B or Section 4.2.C hereof. Section 9.7. Insurance. The City shall either self-insure or, as needed, and to the extent insurance coverage is available at reasonable cost with responsible insurers, keep, or cause to be kept, the Electric System and the operation thereof insured, with policies payable to the City, against the risks of direct physical loss, damage to or destruction of the Electric System, or any part thereof, and against accidents, casualties or negligence, including liability insurance and employer's liability, at least to the extent that similar insurance is usually carried by electric utilities operating like properties. In the event of any loss or damage to the properties of the Electric System covered by insurance, the City will (i) with respect to each such loss, promptly repair and reconstruct to the extent necessary to the proper conduct of the operations of the Electric System the lost or damaged portion thereof and shall apply the proceeds of any insurance policy or policies covering such loss or damage for that purpose to the extent required therefor, unless in the case of loss or damage involving $300,000 or more, such repair and reconstruction shall not be recommended by the Professional Utility Consultant, and (ii) if the City shall not use the entire proceeds of such insurance to repair or reconstruct such lost or damaged property, such insurance proceeds thereof not so used shall be paid into the Light Fund, and if in excess of $300,000 for any one loss or damage, shall be used to purchase or redeem Bonds or to acquire or construct extensions, betterments and improvements to the Electric System. Section 9.8. Books of Account. The City shall keep proper books of account as required by this ordinance in accordance with the rules and regulations prescribed by the Division of Municipal Corporations of the Office of the State Auditor of the State of Washington, or other State department or agency succeeding to such duties of the State Auditor's office, and if no such rules or regulations are prescribed, then in substantial accordance with the uniform system of accounts prescribed by the Federal Energy Regulatory Council or other federal agencies having jurisdiction over electric public utility companies owning and operating properties similar to the electric properties operated by the City, whether or not the City is at that time required by law to use such system of accounts. The City shall cause its books of account to be audited by the Office of the State Auditor or other state agency as may be authorized and directed by law to make such audit, or if the audit shall not be made within twelve months after the close of any Fiscal Year of the City, then the City shall cause such audit to be made by independent certified public accountants licensed, registered or entitled to practice, and practicing as such, under the laws of the State of Washington who, or each of whom, is in fact independent and does not have any interest, direct or indirect, in any contract with the City other than his contract of employment pursuant to this Section and who is not connected with the City as an officer or employee of the City. In keeping the books of account, the City shall accrue depreciation monthly on depreciable properties operated by the City in accordance with the accounting practice prescribed by the uniform system of accounts of the Federal Energy Regulatory Council above mentioned. The City will furnish a copy of the most recent audit report to any owner of Bonds upon written request therefor. Any owner of Bonds may also obtain at the office of the City copies of the balance sheet and income and expense statements showing in reasonable detail the financial condition of the Electric System as of the close of each Fiscal Year, including the transactions relating to the Light Fund, the Bond Fund, and all other funds and accounts created or maintained pursuant to the provisions of this ordinance. Section 9.9. Covenant Not to Render Service Free of Charge. So long as any Bonds are outstanding, the City shall not furnish or supply or permit the furnishing or supplying of electric energy or any other commodity, service or facility furnished by or in connection with the operation of the Electric System free of charge to any person, firm or corporation, public or private, and the City will promptly enforce the payment of any and all accounts owing to the City and delinquent, by discontinuing service or by filing suits, actions or proceedings, or by both discontinuance of service and filing suit; provided, that to the extent permitted by law, the City may loan money and may provide commodities, services or facilities free of charge or at a reduced charge in connection with a plan of conservation of electric energy or senior citizen or indigent ratepayer discounts adopted by the Council. Section 9.10. Covenant to Make Only Economically Sound Improvements. The City shall not expend any money in the Light Fund or the proceeds of Additional Bonds or other obligations for any renewals, replacements~ extensions, betterments and improvements to the Electric System that are not economically sound and will not properly and advantageously contribute to the conduct of the business of the City in an efficient and economical manner; provided that the foregoing shall not preclude the City from paying any legal or contractual obligations. Section 9.11. Covenant to Pay Bond Principal and Interest Punctually. The City shall duly and punctually pay or cause to be paid, but only from the Bond Fund, the principal of, premium, if any, and interest on each and every Bond on the dates and at the places and in the manner provided in the Bonds, according to the true intent and meaning thereof, and will faithfully do and perform and fully observe and keep any and all covenants, undertakings, stipulations and provisions contained in the Bonds and in this ordinance and each Supplemental Ordinance author/zing Additional Bonds. -3 9- P:IDOTtDOTI FR 02/01/05 Section 9.12. Covenant to Pay Taxes, Assessments and Other Claims. The City shall from time to time duly pay and discharge, or cause to be paid and discharged, when the same shall become due, all taxes, assessments and other governmental charges, or payments in lieu thereof, lawfully imposed upon the Electric System or the Revenues, and all claims for labor and materials and supplies which, if not paid, might become a lien or charge upon the Electric System, or any part thereof, or upon the Revenues, or which might in any way impair the security of the Bonds, except taxes, assessments, charges or claims which the City shall in good faith contest by proper legal proceedings. Section 9.13. Covenant to Retain Competent Management. The City shall at all times retain and employ a competent manager for the Electric System who shall be an experienced executive of administrative ability. All employees or agents of the City who collect or handle money of the City shall be bonded by a responsible surety company or companies in amounts sufficient to protect the City adequately from loss. Section 9.14. Further Assurances. The City shall, at any and all times, insofar as it may be authorized so to do, pass, make, do, execute, acknowledge and deliver all and every such further ordinances, acts, deeds, conveyances, assignments, transfers and assurances as may be necessary or desirable for the better assuring, conveying, granting, assigning and confirming any and all of the fights, Revenues and other funds hereby pledged or assigned to the payment of the Bonds, or intended so to be, or which the City may hereafter become bound to pledge or assign. Section 9.15. Tax Covenants; Special Designation. The City shall comply with the provisions of this Section unless, in the written opinion of bond counsel to the City, such compliance is not required in order to maintain the exemption of the interest on the 2005 Bonds from federal income taxation. The City hereby covenants that it will not make any use of the proceeds of sale of the 2005 Bonds or any other funds of the City that may be deemed to be proceeds of such 2005 Bonds pursuant to Section 148 of the federal Internal Revenue Code of 1986 and the applicable regulations thereunder that will cause the 2005 Bonds to be "arbitrage bonds" within the meaning of said section and said regulations. The City will comply with the requirements of Section 148 of the Internal Revenue Code of 1986, as amended (or any successor provision thereof applicable to the 2005 Bonds), and the applicable regulations thereunder throughout the term of the 2005 Bonds. The City further covenants that it will not take any action or permit any action to be taken that would cause the 2005 Bonds to constitute "private activity bonds" under Section 141 of the federal Internal Revenue Code of 1986, as amended. The City hereby designates the 2005 Bonds as "qualified tax-exempt obligations" for purchase by financial institutions pursuant to Section 265(b) of the Code. The City does not anticipate that it will issue more than $10,000,000 in qualified tax-exempt obligations during the year 2005. ARTICLE X SUPPLEMENTAL AND AMENDATORY ORDINANCES Section 10.1. Amendments Without Consent of Bondowners. The City may adopt at any time and from time to time without the consent of the owners of any Bonds an ordinance or ordinances supplemental to or amendatory of this ordinance and any Supplemental Ordinance theretofore adopted for any one or more of the following purposes: (1) To provide for the issuance of Additional Bonds pursuant to Article IV hereof, and to prescribe the terms and conditions pursuant to which such Additional Bonds may be issued, paid or redeemed; (2) To add additional covenants and agreements of the City for the purpose of further securing the payment of the Bonds, provided such additional covenants and agreements are not contrary to or inconsistent with the covenants and agreements of the City contained in this ordinance or any Supplemental Ordinance; (3) To prescribe further limitations and restrictions upon the issuance of Bonds and the incurring of indebtedness by the City payable from the Revenues that are not contrary to or inconsistent with the limitations and restrictions thereon theretofore in effect; (4) To surrender any right, power or privilege reserved to or conferred upon the City by the terms of this ordinance; (5) To confirm as further assurance any pledge under, and the subjection to any lien, claim or pledge created or to be created by, the provisions of this ordinance of the Revenues or of any other money, securities or funds; (6) To cure any ambiguity or defect or inconsistent provision of this ordinance or any Supplemental Ordinance or to insert such provisions clarifying matters or questions arising under this ordinance or any Supplemental Ordinance as are necessary or desirable in the event any such modifications are not contrary to or inconsistent with this ordinance or any Supplemental Ordinance as theretofore in effect; or (7) To modify any of the provisions of this ordinance or any Supplemental Ordinance in any other respect; provided that such modification shall not be effective until after the Bonds outstanding as of the date of adoption of such ordinance shall cease to be outstanding, and any Bonds issued under such ordinance shall contain a specific reference to the modifications contained in such subsequent ordinance. Section 10.2. Amendments With Consent of Bondowners. The provisions of this ordinance and of any Supplemental Ordinance may be modified at any time or fi.om time to time by a Supplemental Ordinance, with the consent ofbondowners in accordance with and subject to the provisions of Article XII hereof. Written notice of any amendment to this ordinance or any Supplemental Ordinance shall be given to Moody's Investors Service, 99 Church Street, New York, NY 10007, Attention: Public Finance. ARTICLE XI DEFAULTS AND REMEDIES Section 11.1. Events of Default. The Council hereby finds and determines that the continuous operation of the Electric System and the collection, deposit and disbursement of the Revenues in the manner provided in Ordinance Nos. 2709, 2877, 2879, 3100, this ordinance, and any Supplemental Ordinances thereto are essential to the payment and security of the Bonds, and the failure or refusal of the City to perform the covenants and obligations contained in such ordinances will endanger the necessary continuous operation of the Electric System and the application of the Revenues to the purposes set forth in such ordinances. Ordinance Nos. 2709, 2877, 2879, 3100, this ordinance and each Supplemental Ordinance adopted pursuant to Article X are hereinafter in this Article XI and in Article XII referred to collectively as "the Ordinance." The City hereby covenants and agrees with the purchasers and owners from time to time of the Bonds, in order to protect and safeguard the covenants and obligations undertaken by the City securing the Bonds, that the following shall constitute "Events of Default": (1) If the City shall default in the performance of any obligations with respect to payments into the Light Fund; (2) If default shall be made in the due and punctuhl payment of the principal of and premium, if any, on any of the Bonds when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; (3) If default shall be made in the due and punctual payment of any installment of interest on any Bond; (4) If the City shall fail, by any Sinking Fund Requirement Date, to have purchased or redeemed Term Bonds in a cumulative principal amount at least equal to the cumulative Sinking Fund Requirements at such Sinking Fund Requirement Date; (5) If the City shall default in the observance and performance of any other of the covenants, conditions and agreements on the part of the City contained in the Ordinance and such default or defaults shall have continued for a period of 60 days after the City shall have received from a Bondowners' Trustee or from the owners of not less than 20% in principal amount of the Bonds outstanding, a written notice specifying and demanding the cure of such default; (6) If the City shall (except as herein permitted) sell, transfer, assign or convey any properties constituting the Electric System or interests therein, or any part or parts thereof, or shall make any agreement for such sale or transfer (except as expressly authorized by Section 9.6 hereof); (7) If an order, judgment or decree shall be entered by any court of competent jurisdiction: (a) appointing a receiver, trustee or liquidator for the City or the whole or any substantial part of the Electric System; (b) approving a petition filed against the City seeking the bankruptcy, arrangement or reorganization of the City under any applicable law of the United States or the State of Washington; or (c) assuming custody or control of the City or of the whole or any substantial part of the Electric System under the provisions of any other law for the relief or aid of debtors and such order, judgment or decree shall not be vacated or set aside or stayed (or, in case custody or control is assumed by said order, such custody or control shall not be otherwise terminated) within 60 days from the date of the entry of such order, judgment or decree; or (8) If the City shall: (a) admit in writing its inability to pay its debts generally as they become due; (b) file a petition in bankruptcy or seeking a composition of indebtedness under any state or federal bankruptcy or insolvency law; (c) make an assignment for the benefit of its creditors; (d) consent to the appointment of a receiver of the whole or any substantial part of the Electric System; or (e) consent to the assumption by any court of competent jurisdiction under the provisions of any other law for the relief or aid of debtors of custody or control of the City or of the whole or any substantial part of the Electric System. Section 11.2. Waivers of Default. No delay or omission of the Bondowners' Trustee or of any owner of Bonds to exercise any right or power arising upon the happening of an Event of Default shall impair any right or power or shall be construed to be a waiver of any such Event of Default or to be an acquiescence therein; and every power and remedy given by this Article to the Bondowners' Trustee or to the owners of Bonds may be exercised from time to time and as often as may be deemed expedient by the Bondowners' Trustee or by such owners. The Bondowners' Trustee or the owners of not less than 50% in principal amount of the Bonds at the time outstanding, or their attorneys-in-fact duly authorized, may on behalf of the owners of all of the Bonds waive any past default under the Ordinance and its consequences, except a default in the payment of the principal of, premium, if any, or interest on any of the Bonds. No such waiver shall extend to any subsequent or other default or impair any right consequent thereon. Section 11.3. Bondowners' Trustee. So long as an Event of Default shall not have been remedied, a Bondowners' Trustee may be appointed by the owners of 20% in principal amount of the Bonds then outstanding, by an instrument or concurrent instruments in writing signed and acknowledged by such bondowners or by their attomeys-in-fact duly authorized and delivered to such Trustee, notification thereof being given to the City. Any Bondowners' Trustee appointed under the provisions of this Section 11.3 shall be a bank or trust company organized under the laws of the State of Washington or the State of New York or a national banking association. The fees and expenses of the Bondowners' Trustee shall be borne by the Bondowners and not by the City. The bank or trust company acting as Bondowners' Trustee may be removed at any time, and a successor Bondowners' Trustee may be appointed, by the owners of a majority in principal amount of the Bonds, by an instrument or concurrent instruments in writing signed and acknowledged by such Bondowners or by their attorneys-in-fact duly authorized. The Bondowners' Trustee appointed in the manner herein provided, and each successor thereto, is hereby declared to be a trustee for the owners of all the Bonds and is empowered to exercise all the fights and powers herein conferred on the Bondowners' Trustee. Section 11.4. Suits at Law or in Equity. The Bondowners' Trustee may upon the happening of an Event of Default, and during the continuance thereof, take such steps and institute such suits, actions or other proceedings in its own name, or as trustee, all as it may deem appropriate for the protection and enforcement of the fights of bondowners to collect any amounts due and owing the City, or to obtain other appropriate relief, and may enforce the specific performance of any covenant, agreement or condition contained in the Ordinance, or in any of the Bonds. Any action, suit or other proceedings instituted by the Bondowners' Trustee hereunder shall be brought in its name as trustee for the bondowners and all such rights of action upon or under any of the Bonds or the provisions of the Ordinance may be enfomed by the Bondowners' Trustee without the possession of any of said Bonds, and without the production of the same at any trial or proceedings relative thereto except where otherwise required by law, and the respective owners of said Bonds, by taking and holding the same, shall be conclusively deemed irrevocably to appoint the Bondowners' Trustee the true and lawful trustee of the respective owners of said Bonds, with authority to institute any such action, suit or proceeding; to receive as trustee and deposit in trust any sums becoming distributable on account of said Bonds; to execute any paper or documents for the receipt of such money, and to do all acts with respect thereto that the bondowner himself might have done in person. Nothing heroin contained shall be deemed to authorize or empower the Bondowners' Trustee to consent to accept or adopt, on behalf of any owner of any Bond, any plan or reorganization or adjustment affecting the said Bonds of the City or any right of any owner thereof, or to authorize or empower the Bondowners' Trustee to vote the claims of the owners thereof in any receivership, insolvency, liquidation, bankruptcy, reorganization or other proceeding to which the City shall be a party. Section 11.5. Books of City Open to Inspection. The City covenants that if an Event of Default shall have happened and shall not have been remedied, the books of record and account of the City shall at all times be subject to the inspection and use of the Bondowners' Trustee. The City covenants that if an Event of Default shall happen and shall not have been remedied, the City will continue to account, as trustee of an express trust, for all Revenues and other money, securities and funds pledged under the Ordinance. Section 11.6. Payment of Funds to Bondowners' Trustee. The City covenants that if an Event of Default shall happen and shall not have been remedied, the City, upon demand of the Bondowners' Trustee, shall pay over to the Bondowners' Trustee (i) forthwith, all money, -44- P:IDOI~DOT1 FR securities and funds then held by the City and pledged under the Ordinance, and (ii) as promptly as practicable after receipt thereof, all Revenues. Section 11.7. Application of Funds by Bondowners' Trustee. During the continuance of an Event of Default the Revenues received by the Bondowners' Trustee pursuant to the provisions of the preceding paragraph shall be applied by the Bondowners' Trustee, first, to the payment of the reasonable and proper charges, expenses and liabilities paid or incurred by the Bondowners' Trustee (including the cost of securing the services of any engineer or firm of engineers selected for the purpose of rendering advice with respect to the sufficiency of the rates and charges for power and energy sold, furnished or supplied by the Electric System), and second, in accordance with the provisions of Section 7.1 of the Ordinance. In the event that at any time the funds held by the Bondowners' Trustee and the Paying Agents for the Bonds shall be insufficient for the payment of the principal of, premium, if any, and interest then due on the Bonds, such funds (other than funds held for the payment or redemption of particular Bonds which have theretofore become due at maturity or by call for redemption) and all Revenues and other money received or collected for the benefit or for the account of owners of the Bonds by the Bondowners' Trustee shall be applied as follows: First, to the payment to the persons entitled thereto of all installments of interest then due in the order of the maturity of such installments, earliest maturities first, and, if the amount available shall not be sufficient to pay in full any installment or installments or interest maturing on the same date, then to the payment thereof ratably, according to the amounts due thereon, to the persons entitled thereto, without any discrimination or preference; and Second, to the payment to the persons entitled thereto of the unpaid principal and premium, if any, of any Bonds which shall have become due, whether at maturity or by call for redemption, in the order of their due dates, earliest maturities first, and, if the amount available shall not be sufficient to pay in full all the Bonds due on any date, then to the payment thereof ratably, according to the amounts of principal and premium, if any, due on such date, to the persons entitled thereto, without any discrimination or preference. Section 11.8. Relinquishment of Funds Upon Remedy of Default. If and whenever all overdue installments of interest on all Bonds, together with the reasonable and proper charges, expenses and liabilities of the Bondowners' Trustee and the owners of Bonds, their respective agents and attorneys, and all other sums payable by the City under the Ordinance, including the principal of, premium, if any, and accrued unpaid interest on all Bonds then payable (with interest upon such principal and premium, if any, and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at the same rate as the rate of interest specified in the Bonds, to the date of such payment or deposit), shall either be paid by or for the account of the City, or provision satisfactory to the Bondowners' Trustee shall be made for such payment, and all defaults under the Ordinance or the Bonds shall be made good or secured to the satisfaction of the Bondowners' Trustee or provision deemed by the -45- P:~DOI~DOT1 FR 0Z~01/05 Bondowners' Trustee to be adequate shall be made therefor, the Bondowners' Trustee shall pay over to the City all money, securities, funds and Revenues then remaining unexpended in the hands of the Bondowners' Trustee and thereupon all Revenues shall thereafter be applied as provided in the Ordinance. No such payment over to the City by the Bondowners' Trustee or resumption of the application of Revenues as provided in the Ordinance shall extend to or affect any subsequent default under the Ordinance or impair any right consequent thereon. Section 11.9. Suits by Individual Bondowners. No owner of any one or more of the Bonds shall have any right to institute any action, suit or proceeding at law or in equity, unless an Event of Default shall have happened and be continuing, and unless no Bondowners' Trustee has been appointed as herein provided, but any remedy herein authorized to be exemised by the Bondowners' Trustee may be exemised individually by any bondowner, in his own name and on his own behalf or for the benefit of all bondowners, in the event that no Bondowners' Trustee has been appointed, or with the consent of the Bondowners' Trustee if such Bondowners' Trustee has been appointed; provided, however, that nothing in the Ordinance or in the Bonds shall affect or impair the obligation of the City, which is absolute and unconditional, to pay from Net Revenues the principal of and interest on the Bonds to the respective owners thereof at the respective due dates therein specified, or affect or impair the right of action, which is absolute and unconditional, of such owners to enforce such payment. Section 11.10. Remedies Granted in Ordinance not Exclusive No remedy by the terms of the Ordinance conferred upon or reserved to the Bondowners' Trustee or the owners of the Bonds is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under the Ordinance or existing at law or in equity or by statute on or after the date of adoption of the Ordinance. ARTICLE XlI AMENDMENTS AND BONDOWNERS MEETINGS Section 12.1. Call of Bondowners Meetings. The City, the Bondowners' Trustee or the owners of not less than 20% in principal amount of the Bonds then outstanding may at any time call a meeting of the owners of the Bonds. Every such meeting shall be held at such place in the City of New York, New York, or in the City of Seattle, Washington, as may be specified in the notice calling such meeting. Written notice of such meeting, stating the place and time of the meeting and in general terms the business to be transacted, shall be mailed to the bondowners by the City, the Bondowners' Trustee or the bondowners calling such meeting not less than 30 nor more than 60 days before such meeting, and shall be published at least once a week for four successive calendar weeks on any day of the week, the date of first publication to be not less than 30 nor more than 60 days preceding the meeting; provided, however, that the mailing of such notice shall in no case be a condition precedent to the validity of any action taken at any such meeting. The expenses of publication of such notice shall be paid or reimbursed by the City. Any meeting of bondowners shall, however, be valid without notice if the owners of all Bonds then outstanding are present in person or by proxy or if notice is waived before or within 30 days after the meeting by those not so present. Section 12.2. Notice to Bondowners. Except as otherwise provided in the Ordinance, any provision in the Ordinance for the mailing of a notice or other paper to bondowners shall be fully complied with if it is mailed by first class mail, postage prepaid, to each Registered Owner of any of the Bonds then outstanding at his address, if any, appearing upon the Bond Register; and any provision in the Ordinance contained for publication of a notice or other matter shall require the publication thereof in The Daily Bond Buyer in the City of New York, New York (or in lieu of publication in The Daily Bond Buyer, in a daily newspaper printed in the English language and customarily published on each business day of general cimulation in the Borough of Manhattan, the City of New York, New York), and also in a daily newspaper printed in the English language and customarily published on each business day and of general cimulation in the City of Seattle, Washington. Section 12.3. Proxies; Proof of Ownership of Bonds. Attendance and voting by bondowners at such meetings may be in person or by proxy. Owners of Bonds may, by an instrument in writing under their hands, appoint any person or persons, with full power and substitution, as their proxy to vote at any meeting for them. Officers or nominees of the City may be present or represented at such meeting and take part therein but shall not be entitled to vote thereat, except as such officers or nominees are bondowners or proxies for bondowners. Any registered owner of Bonds shall be entitled in person or by proxy to attend and vote at such meeting as owner of the Bonds registered in his name without producing such Bonds, and such persons and their proxies shall, if required, produce such proof of personal identity as shall be satisfactory to the Secretary of the meeting. All proxies presented at such meeting shall be delivered to the Inspectors of Votes and filed with the Secretary of the meeting. The vote at any such meeting of the owner of any Bond entitled to vote thereat shall be binding upon such owner and upon every such subsequent owner of such Bond (whether or not such subsequent owner has notice thereof). Section 12:4. Execution of Instruments by Bondowners. Any request, direction, consent or other instrument in writing required or permitted by the Ordinance to be signed or executed by Bondowners may be in any number of concurrent instruments of similar tenor, and may be signed or executed by such bondowners in person or by agent appointed by an instrument in writing. Proof of the execution of any such instrument shall be sufficient for any purpose of the Ordinance if made by either (a) an acknowledgment executed by a notary public or other officer empowered to take acknowledgments of deeds to be recorded in the particular jurisdiction, or (b) an affidavit of a witness to such execution swom to before such a notary public or other officer. Where such execution is by an officer of a corporation or association or a member of a partnership on behalf of such corporation, association or partnership, such acknowledgment or affidavit shall also constitute sufficient proof of his authority. The foregoing shall not be construed as limiting the City to such proof, it being intended that the City may accept any other evidence of the matters herein stated which it may deem -47- P:I~OT~DOT1 FR 0Z/01105 sufficient. Any request or consent of the owner of any Bond shall bind every future owner of the same Bond in respect of anything done by the City in pursuance of such request, direction or consent. The right of a proxy for a bondowner to act may be proved (subject to the City's right to require additional proof) by a written proxy executed by such bondowner as aforesaid. Section 12.5. Appointment of Officers at Bondowners MeetinEs. Persons named by the City or elected by the owners of a majority in principal amount of the Bonds represented at the meeting in person or by proxy in the event the City is not represented at such meeting, shall act as temporary Chairman and temporary Secretary of any meeting of bondowners. A permanent Chairman and a permanent Secretary of such meeting shall be elected by the owners of a majority in principal amount of the Bonds represented at such meeting in person or by proxy. The permanent Chairman of the meeting shall appoint two Inspectors of Votes who shall count all votes cast at such meeting, except votes on the election of Chairman and Secretary as aforesaid, and who shall make and file with the Secretary of the meeting and with the City their verified report of all such votes cast at the meeting. Section 12.6. Quorum at Bondowners Meetings. The owners of not less than the principal amount of the Bonds required for any action to be taken at such meeting must be present at such meeting in person or by proxy in order to constitute a quorum for the transaction of business, less than a quorum, however, having power to adjourn from time to time without any other notice than the announcement thereof at the meeting; provided, however, that, if such meeting is adjourned by less than a quorum for more than ten days, notice thereof shall be published by the City at least five days prior to the adjoumed date of the meeting. Section 12.7. Vote Required to Amend Ordinance. Any amendment to the provisions of the Ordinance in any particular except the pementage of bondowners the approval of which is required to approve such amendment, may be made by a Supplemental Ordinance of the City and a resolution duly adopted by the affirmative vote at a meeting ofbondowners duly convened and held, or with written consent as hereinafter provided in Section 12.9, of the owners of not less than 66 2/3% in principal amount of the Bonds outstanding when such meeting is held or such consent is given; provided, however, that no such amendment shall (a)extend the date of payment of the principal of any Bond or of any installment of interest thereon or reduce the principal or redemption price thereof or the rate of interest thereon or advance the date upon which any Bond may first be called for redemption prior to its fixed maturity date; (b) give to any Bond or Bonds any preference over any other Bond or Bonds secured equally and ratably therewith; (c)reduce the aforesaid percentage of Bonds the owners of which are required to consent to any such ordinance amending the provisions of the Ordinance; or (d) authorize the creation of any pledge prior to or, except as provided in Article IV hereof for the issuance of Additional Bonds, on a parity with the pledge afforded by the Ordinance, without the consent of the owner of each such Bond affected thereby. Section 12.8. Obtaining Approval of Amendments at Bondowners Meeting. The City may at any time adopt an ordinance amending the provisions of the Ordinance to the extent that such amendment is permitted by the provisions of Section 12.7 hereof, to take effect when and as provided in this Section. At any time thereafter such ordinance may be submitted by the City for approval to a meeting of the bondowners duly convened and held in accordance with the provisions of the Ordinance. A record in duplicate of the proceedings of each meeting of the bondowners shall be prepared by the permanent Secretary of the meeting and shall have attached thereto the original reports of the Inspectors of Votes and affidavits by a person or persons having knowledge of the facts, showing a copy of the notice of the meeting and setting forth the facts with respect to the mailing and publication thereof under the provisions of the Ordinance. Such a record shall be signed and verified by the affidavits of the permanent Chairman and the permanent Secretary of the meeting, and one duplicate thereof shall be delivered to the City. Any record so signed and verified shall be proof of the matters therein stated. If the ordinance of the City making such amendment shall be approved by a ordinance duly adopted at such meeting of bondowners by the affirmative vote of the owners of the required percentages of Bonds, a notice stating that a ordinance approving such amendment has been so adopted shall be mailed by the City to each bondowner who has requested such notice (but failure so to mail copies of such notice shall not affect the validity of such ordinance) and shall be published at least once in the manner provided in Section 12.2 hereofi Proof of such mailing and publication by the affidavit or affidavits of a person or persons having knowledge of the facts shall be filed with the City. Such ordinance of the City making such amendment shall be deemed conclusively to be binding upon the City, the Paying Agents, and the owners of all Bonds at the expiration of 30 days after the publication of the notice provided for in this Section, except in the event of a final decree of a court of competent jurisdiction setting aside such ordinance or annulling the action taken thereby in a legal action or equitable proceeding for such purpose commenced within such period; provided that the City and any Paying Agents during such 30 day period and any such further period during which such action or proceeding may be pending shall be entitled in their absolute discretion to take such action, or to refrain from taking such action, with respect to such ordinance as they may deem expedient. Nothing in the Ordinance contained shall be deemed or construed to authorize or permit, by reason of any call of a meeting ofbondowners or of any right conferred hereunder to make such a call, any hindrance or delay in the exercise of any rights conferred upon or reserved to the Paying Agents or the bondowners under any of the provisions of the Ordinance. Section 12.9. Altemate Method of Obtaining Approval of Amendments. The City may at any time adopt an ordinance amending the provisions of the Ordinance, or of any Bonds, to the extent that such amendment is permitted by the provisions of this Article, to take effect when and as provided in this Section. Upon adoption of such ordinance, a request that bondowners consent thereto shall be mailed by the City to the bondowners and notice that the City is requesting bondowners to consent to such amendment shall be published at least once in the manner provided in Section 12.2 hereofi Such ordinance shall not be effective unless and until there shall have been filed with the City the written consents of the percentages of owners of outstanding Bonds specified in Section 12.7 hereof and a notice shall have been published as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 12.3 hereofi A certificate or certificates of the City Clerk that he has examined such proof and that such proof is sufficient shall be conclusive that the consents have -49- P:\DOTtDOT1 FR 02J01105 been given by the owners of the Bonds described in such certificate or certificates. Any such consent shall be binding upon the owner of the Bonds giving such consent and on every subsequent owner of such Bonds (whether or not such subsequent owner has notice themo0. A notice stating that the ordinance has been consented to by the owners of the required percentages of bonds and will be effective as provided in this Section, may be given to the bondowners by mailing such notice to the bondowners, and shall be given by publishing the same at least once in the manner provided in Section 12.2 hereof. A record, consisting of the papers required by this Section to be filed with the City shall be proof of the matters therein stated, and the ordinance shall be deemed conclusively to be binding upon the City and the owners of all Bonds at the expiration of 30 days after the notice last provided for in this Section, except in the event of a final decree of a court of competent jurisdiction setting aside such consent or annulling the action taken thereby in a legal action or equitable proceeding for such purpose commenced within such period. Section 12.10. Amendment of Ordinance In Any Respect by Approval of All Bondowners. Notwithstanding anything contained in the foregoing provisions of this Article, the fights and obligations of the City and of the owners of the Bonds and the terms and provisions of the Bonds and of the Ordinance may be amended in any respect with the consent of the City, by the affirmative vote of the owners of all said Bonds then outstanding at a meeting of bondowners called and held as hereinabove provided, or upon the adoption of an ordinance by the City and the consent of the owners of all the Bonds then outstanding, such consent to be given as provided in Section 12.9 except that no notice to bondowners either by mailing or publication shall be required, and the amendment shall be effective immediately upon such unanimous vote or written consent of all of the bondowners. Section 12.11. Bonds Owned by City. Bonds owned or held by or for the account of the City shall not be deemed outstanding for the purpose of any vote or consent or other action or any calculation of outstanding Bonds in the Ordinance provided for, and shall not be entitled to vote or consent or take any other action in the Ordinance provided for. Section 12.12. Endorsement of Amendment on Bonds. Bonds delivered at~er the effective date of any action amending the Ordinance taken as hereinabove provided may bear a notation by endorsement or otherwise as to such action, and in that case, upon demand of the owner of any Bond outstanding at such effective date and presentation of his Bond for the purpose at the principal office of the Paying Agents, suitable notation shall be made on such Bond by the Paying Agent as to any such action. If the City shall so determine, new Bonds so modified as in the opinion of the City and its counsel to conform to such action shall be prepared, delivered and upon demand of the owner of any Bond then outstanding shall be exchanged without cost to such bondowner for Bonds then outstanding hereunder, upon surrender of such Bonds. -50- P:\DOT~DOT1 FR 02101105 ARTICLE X[II MISCELLANEOUS, DEFEASANCE; SALE OF BONDS AND APPROVAL OF OFFICIAL STATEMENT Section 13.1. Ordinance and Laws a Contract With Bondowners. This ordinance is adopted under the authority of and in full compliance with the Constitution and laws of the State of Washington, as amended and supplemented. In consideration of the pumhase and acceptance of the Bonds by those who shall hold the same from time to time, the provisions of this ordinance and of any Supplemental Ordinance authorizing the issuance of Additional Bonds and of said laws shall constitute a contract with the owner or owners of each Bond, and the obligations of the City and its Council under said acts and under this ordinance shall be enfomeable by any court of competent jurisdiction; and the covenants and agreements herein set forth to be performed on behalf of the City shall be for the equal benefit, protection and security of the owners of any and all of said Bonds all of which, regardless of the time or times of their issue or maturity, shall be of equal rank without preference, profity or distinction of any of said Bonds over any others thereof except as expressly provided herein. Section 13.2. Bonds Deemed No Longer to be Outstanding Hereunder. In the event that the City, in order to effect the payment, retirement or redemption of any Bond, sets aside in the Bond Fund or in another special account, held in trust by the City or by a qualified trustee, advance refunding bond proceeds or other money lawfully available or direct obligations of or obligations the principal of and the interest on which are unconditionally guaranteed by the United States Government ("Government Obligations"), or any combination of such proceeds, money and/or Government Obligations, in amounts which, together with known earned income from the investment thereof are sufficient to redeem, retire or pay such Bond in accordance with its terms and to pay when due the interest and redemption premium, if any, thereon, and such proceeds, money and/or Govemment Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on such Bond, and the owner of such Bond shall cease to be entitled to any lien, benefit or security of this ordinance, or any other ordinance of the City, except the right to receive payment of principal, premium, if any, and interest from such special account, and such Bonds shall be deemed not to be outstanding hereunder. The City shall obtain an opinion of nationally recognized bond counsel to the effect set forth in the preceding sentence and that the tax-exempt status of such Bonds is not adversely affected, and a verification from a certified public accountant that the money when due or Government Obligations so set aside will be sufficient to pay the principal, premium, if any, and interest on the Bonds to be refunded. Section 13.3. Sale of 2005 Bonds. The 2005 Bonds shall be sold by negotiated sale to Seattle-Northwest Securities Corporation, Seattle, Washington, under the terms and conditions thereof as provided in its pumhase contract and in this ordinance. The City Manager is hereby authorized to sign the pumhase contract on behalf of the City. The proper City officials are hereby authorized and directed to do everything necessary for the prompt execution and delivery of the 2005 Bonds to the Underwriter and for the proper application and use of the proceeds of sale thereof. Section 13.4. Official Statement. The City approves the preliminary Official Statement presented to this Council and ratifies the Underwriter's distribution of the preliminary Official Statement in connection with the offering of the 2005 Bonds. To permit the Underwriter to comply with the Rule, the Preliminary Official Statement dated January__, 2005, is hereby deemed final as of its date except for the omission of information dependent upon the pricing of the 2005 Bonds and the completion of the purchase contract. The City agrees to cooperate with the Underwriter to deliver or cause to be delivered, within seven business days from the date of the sale of the 2005 Bonds and in sufficient time to accompany any confirmation that requests payment from any customer of the Underwriter, copies of a final Official Statement in sufficient quantity to comply with paragraph (b)(4) of the Rule and the rules of the MSRB. The City Manager and Finance Director are hereby authorized to review and approve on behalf of the City the final Official Statement relative to the 2005 Bonds with such additions and changes as they may deem necessary or advisable. Section 13.5. Undertaking to Provide Ongoing Disclosure. A. Contract/Undertaking. This section constitutes the City's written undertaking for the benefit of the owners of the 2005 Bonds as required by Section (b)(5) of the Rule. B. Financial Statements/Operating Data. The City agrees to provide or cause to be provided to each NRMSIR and to the SID, if any, in each case as designated by the Commission in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2005 for the fiscal year ended December 31, 2004): 1. The audited financial statements of the Electric System prepared in accordance with generally accepted accounting principles applicable to government entities, and in accordance with regulations prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) and substantially in accordance with the system prescribed by the Federal Energy Regulatory Commission; provided, that if the Electric System's audited financial statements am not yet available, the City shall provide unaudited financial statements in substantially the same format, and audited financial statements when they become available; 2. The outstanding long-term indebtedness of the Electric System, and any system of the City which provides power or capacity to the Electric System; 3. Electric System retail customers, energy sales, peak loads and revenues substantially in the form of the table "Historical Customers and Energy Revenues" in the Official Statement for the 2005 Bonds; 4. Electric System operating results and debt service coverage on all outstanding Bonds substantially in the form of the table "Historical Operating Results" in the Official Statement for the 2005 Bonds; and -52- P:IDOT~(~IDT1 FR 02101105 5. The aggregate amount and percentage of total energy sold and of retail revenues provided by the Electric System's ten largest customers. Items 2-5 shall be required only to the extent that such information is not included in the annual financial statements. The information and data described above shall be provided on or before nine months after the end of the City's fiscal year. The City's current fiscal year ends December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to each then existing NRMSIR and the SID, if any. In lieu of providing such annual financial information and operating data, the City may cross-reference to other documents provided to the NRMSIR's, the SID or to the Commission and, if such document is a final official statement within the meaning of the Rule, available fi.om the MSRB. C. Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the SID, if any, and to each NRMSIR or to the MSRB notice of the occurrence of any of the following events with respect to the 2005 Bonds, if material: · Principal and interest payment delinquencies; · Non-payment related defaults; · Unscheduled draws on debt service reserves reflecting financial difficulties; · Unscheduled draws on credit enhancements reflecting financial difficulties; · Substitution of credit or liquidity providers, or their failure to perform; · Adverse tax opinions or events affecting the tax-exempt status of the 2005 Bonds; · Modifications to rights of owners; · Optional, contingent or unscheduled Bond calls other than scheduled sinking fund redemptions for which notice is given pursuant to Exchange Act Release 34-23856; · Defeasances; · Release, substitution or sale of property securing the repayment of the 2005 Bonds; and · Rating changes. Solely for purposes of disclosure, and not intending to modify this undertaking, the City advises that no property secures payment of the 2005 Bonds. D. Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided, in a timely manner, to each NRMSIR or to the MSRB and to the SID, if any, notice of its failure to provide the annual financial information described in subsection (b) above on or prior to the date set forth in subsection (b) above. E. Termination/Modification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the defeasance, prior redemption or payment in full of all of the 2005 Bonds. Any provision of that section shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that the portion of the Rule that requires that provision is invalid, has been repealed retroactively or otherwise does not apply to the 2005 Bonds; and (2) notifies each NRMSIR and the SID, if any, of such opinion and the cancellation of this section. The City may amend this section with an approving opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any amendment of this section, the City shall describe such amendment in the next annual report, and shall include, a narrative explanation of the reason for the amendment and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (I) notice of such change shall be given in the same manner as for a material event under Subsection (c), and (l/) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if practical, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. F. DisclosureUSA. Any filing required to be made with any NRMSIR or S1D under this Section 13.5 may be made by transmitting such filing solely to the Texas Municipal Advisory Council (the "MAC") as provided at http://www.disclosureusa.org unless the United States Securities and Exchange Commission has withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004. G. Bond Owner's Remedies Under This Section. The right of any bondowner or beneficial owner of 2005 Bonds to enfome the provisions of this section shall be limited to a right to obtain specific enforcement of the City's obligations under this section, and any failure by the City to comply with the provisions of this undertaking shall not be an event of default with respect to the 2005 Bonds. For purposes of this section, "beneficial owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any 2005 Bonds, including persons holding 2005 Bonds tkrough nominees or depositories. H. No Default. The City is not and has not been in default in the performance of its obligations of any prior undertaking for ongoing disclosure with respect to its bond obligations. Section 13.6. Municipal Bond Insurance and Surety Bond. A. Acceptance of Insurance. In accordance with the Underwriter's offer to purchase the 2005 Bonds, the Council hereby approves the commitment of XL Capital Assurance, Inc. (the "insurer") to provide a bond insurance policy guaranteeing the payment when due of principal of and interest on the 2005 Bonds (the "Bond Insurance Policy") and the Surety Bond to satisfy the Reserve Account requirement with respect to the 2005 Bonds. The City agrees to the conditions for obtaining the Surety Bond, including the payment of the premium therefor and the other requirements set forth in the Surety Agreement. The Surety Agreement is hereby approved in substantially the form set forth on Exhibit A to this ordinance, and the City Manager or his designee is hereby authorized to sign the Surety Agreement on behalf of the City, subject to such changes as may be approved by counsel to the City, which approval shall be evidenced by the City Manager's signing and delivery of the Surety Agreement. The Council further authorizes and directs all proper officers, agents, attorneys and employees of the City to cooperate with the Insurer in preparing such additional agreements, certificates, and other documentation on behalf of the City as shall be necessary or advisable in providing for the Bond Insurance Policy and the Surety Bond. B. Payments Under the Bond Insurance Policy. As long as the Bond Insurance Policy is in full force and effect, the City and the Bond Registrar shall comply with the following provisions: (i) If, on the Business Day immediately preceding a scheduled interest payment date or principal payment date ("Payment Date"), there is not on deposit with the Bond Registrar money sufficient to pay the principal of and interest on the 2005 Bonds due on such Payment Date, the City or the Bond Registrar shall give notice to the Insurer and to its designated agent (if any) (the "insurer's Fiscal Agent"), by telephone or telecopy, of the amount of such deficiency by 12:00 noon, New York City time, on such Business Day. If, on such Payment Date, there is not on deposit with the Bond Registrar money sufficient to pay the principal of, and interest on, the 2005 Bonds due on such Payment Date, the Bond Registrar shall make a claim under the Insurance Policy and give notice to the Insurer and the Insurer's Fiscal Agent (if any) by telephone of the amount of any deficiency in the amount available to pay principal and interest, and the allocation of such deficiency between the amount required to pay interest on the 2005 Bonds and the amount required to pay principal of the 2005 Bonds, confirmed in writing to the Insurer and the Insurer's Fiscal Agent by 12:00 noon, New York City time, on such Payment Date, by delivering the Notice of Nonpayment and Certificate. For the purposes of the preceding paragraph, "Notice" means telephonic or telecopied notice, subsequently confirmed in a signed writing, or written notice by registered or certified mail, from the City or Bond Registrar to the Insurer, which notice shall specify (a) the name of the entity making the claim, (b) the policy number, (c) the claimed amount and (d) the date such claimed amount will become Due for Payment. "Nonpayment" means the failure of the City to have provided sufficient funds to the Bond Registrar for payment in full of all principal of, and interest on, the 2005 Bonds that are Due for Payment. "Due for Payment," when referring to the principal of insured bonds, means when the stated maturity date or mandatory redemption date for the application of a required sinking fund installment has been reached and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by application of required sinking fund installments or other advancement of maturity, unless the Insurer shall elect, in its sole discretion, to pay such principal); and when referring to interest on 2005 Bonds, means when the stated date for payment of interest has been reached. "Certificate" means a certificate in form and substance satisfactory to the Insurer as to the Bond Registrar's right to receive payment under the Insurance Policy. (ii) The Bond Registrar shall designate any portion of payment of principal on 2005 Bonds paid by the Insurer at maturity on its books as a reduction in the principal amount of 2005 Bonds registered to the then current Registered Owner, whether DTC or its nominee or otherwise, and shall issue a replacement 2005 Bond to the Insurer, registered in the name of the Insurer, as the case may be, in a principal amount equal to the amount of principal so paid (without regard to authorized denominations); provided, however, that the Bond Registrar's failure to so designate any payment or issue any replacement 2005 Bond shall have no effect on the amount of principal or interest payable by the City on any 2005 Bond or the subrogation rights of the Insurer. (iii) The Bond Registrar shall keep a complete and accurate record of all funds deposited by the Insurer into the Policy Payments Account (as hereinafter defined) and the allocation of such funds to payment of interest on and principal paid with respect to any 2005 Bond. The Insurer shall have the right to inspect such records at reasonable times upon reasonable notice to the Bond Registrar. (iv) Upon payment of a claim under the Bond Insurance Policy, the Bond Registrar shall establish a separate special purpose trust account for the benefit of owners of 2005 Bonds referred to herein as the "Policy Payments Account" and over which the Bond Registrar shall have exclusive control and sole right of withdrawal. The Bond Registrar shall receive any amount paid under the Bond Insurance Policy in trust on behalf of owners of 2005 Bonds and shall deposit any such amount in the Policy Payments Account and distribute such amount only for purposes of making the payments for which a claim was made. Such amounts shall be disbursed by the Bond Registrar to owners of 2005 Bonds in the same manner as principal and interest payments are to be made with respect to the 2005 Bonds under Section 3.2 hereof. It shall not be necessary for such payments to be made by checks or wire transfers separate from the check or wire transfer used to pay debt service with other funds available to make such payments. Funds held in the Policy Payments Account shall not be invested by the Bond Registrar and may not be applied to satisfy any costs, expenses or liabilities of the Bond Registrar. Any funds remaining in the Policy Payments Account following an insured 2005 Bond payment date shall promptly be remitted to the Insurer. C. Provisions Relating to Bond Insurance Policy. As long as the Bond Insurance Policy is in full force and effect, the City shall comply with the following provisions: (i) Notice to the Insurer. Any notices required to be given by the City shall also be given to the Insurer, Attn: Surveillance. (ii) Amendments. Prior written consent of the Insurer is required for any amendment to this ordinance. The City shall give the Insurer notice of any such proposed amendment. A copy of any amendment to this ordinance that is consented to by the Insurer shall be sent to Standard & Poor's Rating Services, a Division of The McGraw-Hill Companies, Inc. (iii) Remedies. The Insurer shall be entitled to control and direct the enforcement of all rights and remedies granted to owners of the 2005 Bonds. The Insurer shall be recognized as the owner of each 2005 Bond for the purposes of exercising all rights and privileges available to owners of the 2005 Bonds. The Insurer shall have the right to institute any suit, action, or proceeding at law or in equity under the same terms as an owner of the 2005 Bonds. (iv) The Insurer as Third Party Beneficiary. The Insurer shall be a third-party beneficiary under this ordinance. (v) Subrogation. If principal and/or interest due on the 2005 Bonds is paid by the Insurer, such 2005 Bonds shall remain outstanding under this ordinance for all purposes, and shall not be deemed defeased or otherwise satisfied, or paid by the City, and the pledge of revenues and all covenants, agreements and other obligations of the City to the owners of the 2005 Bonds shall continue to exist and shall run to the benefit of the Insurer, and the Insurer shall be subrogated to the rights of such owners. Section 13.7. Benefits of Ordinance Limited to City, Bondowners, Insurer, and Bond Registrar. Nothing in this ordinance, expressed or implied, is intended or shall be construed to confer upon or give to any person or corporation other than the City, the Bond Registrar, the Insurer and the owners from time to time of the 2005 Bonds any rights, remedies or claims under or by reason of this ordinance or any covenant, condition or stipulation thereof; and all the covenants, stipulations, promises and agreements in this ordinance contained by or on behalf of the City shall be for the sole and exclusive benefit of the City, the Bond Registrar, the Insurer and the owners from time to time of the 2005 Bonds. Section 13.8. Term "City" Includes Successors Whenever in this ordinance the City is named or referred to, it shall be deemed to include its successors and assigns, including any successor by merger or consolidation, and all the covenants and agreements in this ordinance contained by or on behalf of the City shall bind and inure to the benefit of its successors and assigns whether so expressed or not. Section 13.9. Severability. If any one or more of the covenants or agreements provided in this ordinance on the part of the City to be performed shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements shall be null and void and shall be deemed separable from the remaining covenants and agreements, and shall in no way affect the validity of the other provisions of this ordinance or of the 2005 Bonds. Section 13.10. General Authorization. The Mayor, Director of Public Works and Utilities, Finance Director and City Clerk and each of the other appropriate officers of the City are each hereby authorized and directed to take such steps, to do such other acts and things, and to execute such letters, certificates, agreements, papers, financing statements, assignments or instruments as in their judgment may be necessary, appropriate or desirable in order to carry out the terms and provisions of, and complete the transactions contemplated by, this ordinance. Section 13.11. Adiustment of Dollar Amounts The dollar amounts stated in Sections 9.6.B and 9.7 hereof may, at the option of the City, be adjusted according to the Federal Consumer Price Index applicable to the City, or, if such consumer price index is no longer published, such other similar governmentally published index. Section 13.12. Prior Acts. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 13.13. Effective Date of Ordinance. This ordinance shall become effective from and after its passage and publication as required by law. PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting thereof, held this 1 st day of February, 2005. Attest: Mawr City Clerk -58- PilOOI~DOTIFR 02tOl/O$ EXHIBIT A FINANCIAL GUARANTY AGREEMENT FINANCIAL GUARANTY AGREEMENT made as of , 2004, by and between (the "Issuer") and XL Capital Assurance Inc. (the "Insurer"), a New York stock insurance company. WITNESSETH: WHEREAS, the Issuer has or will issue the Obligations; and WHEREAS, pursuant to the terms of the Bond Document the Issuer agrees to make certain payments on the Obligations; and WHEREAS, the Insurer will issue its Debt Service Reserve Policy, substantially in the form set forth in Annex A to this Agreement, guaranteeing certain payments by the Issuer subject to the terms and limitations of the Debt Service Reserve Policy; and WHEREAS, to induce the Insurer to issue the Debt Service Reserve Policy, the Issuer has agreed to pay the premium for the Debt Service Reserve Policy and to reimburse the Insurer for all payments made by the Insurer under the Debt Service Reserve Policy, all as more fully set forth in this Agreement; and WHEREAS, the Issuer understands that the Insurer expressly requires the delivery of this Agreement as part of the consideration for the execution by the Insurer of the Debt Service Reserve Policy; and NOW, THEREFORE, in consideration of the premises and of the agreements herein contained and of the execution of the Debt Service Reserve Policy, the Issuer and the Insurer agree as follows: ARTICLE I. DEFINITIONS; DEBT SERVICE RESERVE POLICY Section 1.01 Definitions. The terms which are capitalized herein shall have the meanings specified in Annex B hereto. Section 1.02 Debt Service Reserve Policy. (a) The Insurer will issue the Debt Service Reserve Policy in accordance with and subject to the terms and conditions of the Commitment. (b) The maximum liability of the Insurer under the Debt Service Reserve Policy and the coverage and term thereof shall be subject to and limited by the terms and conditions of the Debt Service Reserve Policy. Section 1.03 Premium. In consideration of the Insurer agreeing to issue the Debt Service Reserve Policy hereunder, the Issuer hereby agrees to pay or cause to be paid the Premium set forth in Annex B hereto. The Premium on the Debt Service Reserve Policy is not refundable for any reason. Section 1.04 Certain Other Expenses. The Issuer will pay all reasonable fees and expenses of the Insurer's outside counsel related to any amendment or modification of this Agreement or the Debt Service Reserve Policy. ARTICLE II. REIMBURSEMENT AND INDEMNIFICATION OBLIGATIONS OF ISSUER AND SECURITY THEREFOR Section 2.01 Reimbursement for Payments under the Debt Service Reserve Policy and Expenses; Indemnification. (a) The Issuer will reimburse the Insurer, within the Reimbursement Period, without demand or notice by the Insurer to the Issuer or any other person, to the extent of each Debt Service Reserve Policy Payment with interest on each Debt Service Reserve Policy Payment from and including the date made to the date of the reimbursement at the lesser of the Reimbursement Rate or the maximum rate of interest permitted by then applicable law. (b) The Issuer also agrees to reimburse the Insurer immediately and unconditionally upon demand for all reasonable expenses (including, without limitation, the fees and expenses of the Insurer's outside counsel) incurred by the Insurer in connection with the Debt Service Reserve Policy and the enforcement by the Insurer of the Issuer's obligations under this Agreement, the Bond Document, and any other document executed in connection with the issuance of the Obligations, together with interest o~n all such expenses from and including the date incurred to the date of payment at the rate set forth in subsection (a) of this Section 2.01. (c) The Issuer agrees to indemnify the Insurer, to the extent permitted by state law, against any and all liability, claims, loss, costs, damages, fees of attorneys and other expenses which the Insurer may sustain or incur by reason of or in consequence of (i) the failure of the Issuer to perform or comply with the covenants or conditions of this Agreement or (ii) reliance by the Insurer upon representations made by the Issuer or (iii) a default by the Issuer under the terms of the Bond Document or any other documents executed in connection with the issuance of the Obligations. (d) The Issuer agrees that all amounts owing to the Insurer pursuant to Section 1.03 hereof and this Section 2.01 must be paid in full prior to any optional redemption or refunding of the Obligations. (e) Unless Insurer appoints a fiscal agent pursuant to the terms of the Debt Service Reserve Policy, all payments made to the Insurer under this Agreement shall be paid in lawful currency of the United States in immediately available funds at the Insurer's office at 1221 Avenue of the Americas, New York, New York 10020, Attention: Surveillance, or at such other place as shall be designated by the Insurer. Section 2.02 Allocation of Payments. The Insurer and the Issuer hereby agree that each payment received by the Insurer from or on behalf of the Issuer as a reimbursement to the Insurer as required by Section 2.01 hereof shall be applied by the Insurer first, toward payment of any unpaid premium; second, toward repayment of the aggregate Debt Service Reserve Policy Payments made by the Insurer and not yet repaid, payment of which will reinstate all or a portion of the Debt Service Reserve Policy Coverage as set forth therein; and third, upon full reinstatement of the Debt Service Reserve Policy Coverage to the Policy Limit, toward other amounts, including, without limitation, any interest payable with respect to any Debt Service Reserve Policy Payments then due to the Insurer. Section 2.03 Security for Payments; Instruments of Further Assurance To the extent, but only to the extent, that the Bond Document, or any related indenture, trust agreement, ordinance, resolution, mortgage, security agreement or similar instrument, if any, pledges to the Owners or any trustee therefor, or grants a security interest or lien in or on any collateral, property, revenue or other payments ("Collateral and Revenues") in order to secure the Obligations or provide a source of payment for the Obligations, the Issuer hereby grants to the Insurer a security interest in or lien on, as the case may be, and pledges to the Insurer all such Collateral and Revenues as security for payment of all amounts due hereunder and under the Bond Document or any other document executed in connection with the issuance of the Obligations, which security interest, lien and/or pledge created or granted under this Section 2.03 shall be secured on a parity with the interests of the Owners and any trustee therefor in such Collateral and Revenues, except as otherwise provided. The Issuer agrees that it will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all financing statements, if applicable, and all other further instruments as may he required by law or as shall reasonably be requested by the Insurer for the perfection of the security interest, if any, granted under this Section 2.03 and for the preservation and protection of all rights of the Insurer under this Section 2.03. Section 2.04 Unconditional Obligation. The obligations hereunder are absolute and unconditional and will be paid or performed strictly in accordance with this Agreement, subject to the limitations of the Bond Document, irrespective off (a) any lack Of validity or enforceability of, or any amendment or other modification of, or waiver with respect to the Obligations, the Bond Document or any other document executed in connection with the issuance of the Obligations; or (b) any exchange, release or nonperfection of any security interest in property securing the Obligations or this Agreement or any obligations hereunder; or (c) any cimumstances that might otherwise constitute a defense available to, or discharge of, the Issuer with respect to the Obligations, the Bond Document or any other document executed in connection with the issuance of the Obligations; or (d) whether or not such obligations are contingent or matured, disputed or undisputed, liquidated or unliquidated. Section 2.05 Insurer's Rights. The Issuer shall repay the Insurer to the extent of payments made and expenses incurred by the Insurer in connection with the Obligations and this Agreement. Section 2.06 Ongoing Information Obligations of Issuer. (a) Quarterly Reports. The Issuer will provide to the Insurer within 45 days of the close of each quarter interim financial statements covering all fund balances under the Bond Document, a statement of operations (income statement), balance sheet and changes in fund balances. These statements need not be audited by an independent certified public accountant, but if any audited statements are produced, they must be provided to the Insurer; (b) Annual Reports. The Issuer will provide to the Insurer annual financial statements audited by an independent certified public accountant within 90 days of the end of each fiscal year; (c) Access to Facilities, Books and Records. The Issuer will grant the Insurer reasonable access to the properties financed by the Obligations and will make available to the Insurer, at reasonable times and upon reasonable notice all books and records relative to the project financed by the Obligations; and (d) Compliance Certificate. On an annual basis the Issuer will provide to the Insurer a certificate confirming compliance with. all covenants and obligations hereunder and under the Bond Document or any other document executed in connection with the issuance of the obligations. ARTICLE III. AMENDMENTS TO DOCUMENT So long as this Agreement is in effect, the Issuer agrees that it will not agree to amend the Bond Document or any other document executed in connection with the issuance of the Obligations, without the prior written consent of the Insurer. Section 4.01 hereunder: ARTICLE IV. EVENTS OF DEFAULT; REMEDIES Events of Default. The following events shall constitute Events of Default (a) The Issuer shall fail to pay to the Insurer when due any amount payable under Section 1.03; or (b) The Issuer shall fail to pay to the Insurer any amount payable under Sections 1.04 and 2.01 hereof and such failure shall have continued for a period in excess of the Reimbursement Period; or (c) Any material representation or warranty made by the issuer under the Bond Document or hereunder or any statement in the application for the Debt Service Reserve Policy or any report, certificate, financial statement, document or other instrument provided in connection with the Commitment, the Debt Service Reserve Policy, the Obligations, or herewith shall have been materially false at the time when made; or (d) Except as otherwise provided in this Section 4.01, the Issuer shall fail to perform any of its other obligations under the Bond Document, or any other document executed in connection with the issuance of the Obligations, or hereunder, provided that such failure continues for more than 30 days after receipt by the Issuer or written notice of such failure to perform; or (e) The Issuer shall (i) voluntarily commence any proceeding or file any petition seeking relief under the United States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or similar law, (ii)consent to the institution of, or fail to controvert in a timely and appropriate manner, any such proceeding or the filing of any such petition, (iii)apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator or similar official for such party or for a substantial part Of its property, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors, (vi) become unable, admit in writing its inability or fail generally to pay its debts as they become due or (vii) take action for the purpose of effecting any of the foregoing; or (f) An involuntary proceeding shall be commenced or an involuntary petition shall be filed in a court of competent jurisdiction seeking (i) relief in respect of the Issuer, or of a substantial part of its property, under the United States Bankruptcy Code or any other Federal, state or foreign bankruptcy, insolvency or similar law or (ii)the appointment of a receiver, trustee, custodian, sequestrator or similar official for the Issuer or for a substantial part of its property; and such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall continue unstayed and in effect for 30 days. Section 4.02 Remedies. If an Event of Default shall occur and be continuing, then the Insurer may [(a) declare the Remaining Premium Amount and all other amounts owing hereunder to be due and payable forthwith, whereupon the same shall immediately become due and payable by the Borrower and (b)] take whatever action at law or in equity may appear necessary or desirable to collect the amounts then due and thereafter to become due under this Agreement or to enfome performance of any obligation of the Issuer to the Insurer under the Bond Document or any related instrument, and any obligation, agreement or covenant of the Issuer under this Agreement. All rights and remedies of the Insurer under this Section 4.02 are cumulative and the exemise of any one remedy does not preclude the exemise of one or more of the other available remedies. ARTICLE V. SETTLEMENT The Insurer shall have the exclusive right to decide and determine whether any claim, liability, suit or judgment made or brought against the Insurer, the Issuer or any other party on the Debt Service Reserve Policy shall or shall not be paid, compromised, resisted, defended, tried or appealed, and the Insurer's decision thereon, if made in good faith, shall be final and binding upon the Insurer, the Issuer and any other party on the Debt Service Reserve Policy. An itemized statement of payments made by the Insurer, certified by an officer of the Insurer, or the voucher or vouchers for such payments, shall be prima facie evidence of the liability of the Issuer, and if the Issuer fails to immediately reimburse the Insurer upon the receipt of such statement of payments, interest shall be computed on such amount from the date of any payment made by the Insurer at the rate set forth in subsection (a) of Section 2.01 hereof. ARTICLE VI. MISCELLANEOUS Section 6.01 Interest Computations. All computations of interest due hereunder shall be made on the basis of the actual number of days elapsed over a year of 360 days. Section 6.02 Exercise,-of Rights. No failure or delay on the part of the Insurer to exercise any right, power or privilege under this Agreement and no course of dealing between the Insurer and the Issuer or any other party shall operate as a waiver of any such right, power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly provided are cumulative and not exclusive of any rights or remedies which the Insurer would otherwise have pursuant to law or equity. No notice to or demand on any party in any case shall entitle such party to any other or further notice or demand in similar or other circumstances, or constitute a waiver of the right of the other party to any other or further action in any circumstances without notice or demand. Section 6.03 Amendment and Waiver. Any provision of this Agreement may be amended, waived, supplemented, discharged or terminated only with the prior written consent of the Issuer and the Insurer. The Issuer hereby agrees that upon the written request of the Trustee, the Insurer may make a modification to or issue a substitute for the Debt Service Reserve Policy to cure any ambiguity or formal defect or omission in the Debt Service Reserve Policy which does not materially change the terms of the Debt Service Reserve Policy nor adversely affect the rights of the Owners, and this Agreement shall apply to such substituted Debt Service Reserve Policy. The Insurer agrees to deliver to the Issuer and to the company or companies, if any, rating the Obligations, a copy of such substituted Debt Service Reserve Policy. Section 6.04 Successors and Assigns; Descriptive Headings. (a) This Agreement shall bind, and the benefits thereof shall inure to, the Issuer and the Insurer and their respective successors and assigns; provided, that the Issuer may not transfer or assign any or all of its rights and obligations hereunder without the prior written consent of the Insurer. (b) The descriptive headings of the various provisions of this Agreement are inserted for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. Section 6.05 Other Sureties. If the Insurer shall procure any other surety to reinsure the Debt Service Reserve Policy, this Agreement shall inure to the benefit of such other surety, its successors and assigns, so as to give to it a direct right of action against the Issuer to enforce this Agreement, and "the Insurer," wherever used herein, shall be deemed to include such reinsuring surety, as its respective interests may appear. Section 6.06 Signature on Bond. The Issuer's liability shall not be affected by its failure to sign the Debt Service Reserve Policy nor by any claim that other indemnity or security was to have been obtained nor by the release of any indemnity, nor the return or exchange of any collateral that may have been obtained. Section 6.07 Waiver. The Issuer waives any defense that this Agreement was executed subsequent to the date of the Debt Service Reserve Policy, admitting and covenanting that such Debt Service Reserve Policy was executed pursuant to the Issuer's request and in reliance on the Issuer's promise to execute this Agreement. Section 6.08 Notices, Requests, Demands. Except as otherwise expressly provided herein, all written notices, requests, demands or other communications to or upon the respective parties hereto shall be deemed to have been given or made when actually received, or in the case of telex or telecopier notice sent over a telex or a telecopier machine owned or operated by a party hereto, when sent, addressed as specified below or at such other address as any of the parties may hereafter specify in writing to the others: If to the Issuer: [Address] If to the Trustee: [Address] If to the Insurer: XL Capital Assurance Inc. 1221 Avenue of the Americas New York, New York 10020 Attention: Surveillance Fax:: (212) 478-3587 Section6.09 Survival of Representations and Warranties. All representations, warranties and obligations contained herein shall survive the execution and delivery of this Agreement and the Debt Service Reserve Policy. Section 6.10 Governing Law. This Agreement and the rights and obligations of the parties under this Agreement shall be governed by and construed and interpreted in accordance with the laws of the State. Section 6.11 Counterparts. This Agreement may be executed in any number of copies and by the different parties hereto on the same or separate counterparts, each of which shall be deemed to be an original instrument, and all of which shall constitute but one and the same instrument. Complete counterparts of this Agreement shall be lodged with the Issuer and the Insurer. Section 6.12 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section6.13 Survival of Obligations. Notwithstanding anything to the contrary contained in this Agreement, the obligation of the Issuer to pay all amounts due hereunder and the rights of the Insurer to pursue all remedies shall survive the expiration, termination or substitution of the Debt Service Reserve Policy and this Agreement. IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written. [ISSUER NAME] By: Name: Title: XL CAPITAL ASSURANCE INC. By: Name: Title: ANNEX A. ]Form of Debt Service Reserve Policy] A,gLTI-(~X A - ] P:IDOT~DOTIFR 02/01g)5 ANNEX B DEFINITIONS For all purposes of this Agreement and the Debt Service Reserve Policy, except as otherwise expressly provided herein or unless the context otherwise requires, all capitalized terms shall have the meaning as set out below, which shall be equally applicable to both the singular and plural forms of such terms. "Agreement" means this Financial Guaranty Agreement. "Bond Document" means the [Indenture]. "Closing Date" means "Debt Service Payments" means those payments required to be made by or on behalf of the Issuer which will be applied to payment of principal of and interest on the Obligations. "Debt Service Reserve Policy"'means that policy attached hereto as Annex A and issued by the Insurer guaranteeing, subject to the terms and limitations thereof, including the Policy Limit, Debt Service Payments required to be made by the Issuer under the Bond Document. "Debt Service Reserve Policy Coverage" means the amount available at any particular time to be paid under the terms of the Debt Service Reserve Policy, which amount shall never exceed the Policy Limit. "Debt Service Reserve Policy Payment" means the amount of any payment by the Insurer under the Debt Service Reserve Policy. "Event of Defaulf' shall mean those events of default set forth in Section 4.01 of the Agreement. "[Indenture]" means "Insurer" has the same meaning as set forth in the first paragraph of this Agreement. "Issuer" means "Notice of Nonpayment" means the certificate submitted to the Insurer for payment under the Debt Service Reserve Policy substantially in the form attached to the Debt Service Reserve Policy as Attachment I. "Obligations" means [the Bonds]. Annex B - I P:\OOI'~DOT1FR 02/0~/05 "Owners" means the registered owner of any Obligation as indicated in the books maintained by the Trustee, the Issuer or any designee of the Issuer for such purpose. "Policy Limit" means $ [on "Premium" means $ [specify dates]]. payable to the Insurer [on or prior to the Closing Date] "Reimbursement Period" means, with respect to a particular Debt Service Reserve Policy Payment, the period commencing on the date of such payment and ending on the expiration of 12 months following such Debt Service Reserve Policy Payment. "Reimbursement Rate" means Citibank's prime rate plus three (3) pement per annum, as of the date of such Debt Service Reserve Policy Payment, said "prime rate" being the rate of interest announced from time to time by Citibank, N.A., New York, New York, as its prime rate. The rate of interest shall be calculated on the basis of the actual number of days elapsed over a 360-day year. ["Remaining Premium Amount" means, as of any date of determination, the present value, using a discount rate of %, of each of the [Monthly] Premiums scheduled to be paid from such date until the scheduled maturity date of the Obligations pursuant to Section 1.03 hereof, using the aggregate outstanding principal amount of the Obligations as of such date of determination in order to calculate such [Monthly] Premiums.] "State" means "Trustee" means Annex B - 2 P:\DO~DOT1FR 02~1/05 WASHINGTON, U.S.A. CiTY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL SUE ROBERDS, ASSISTANT PLANNER Request to Annex Property - Pitt Homestead Avenue Summary: A request to circulate an annexation petition has been filed by Mr. and Mrs. Richard Pitt for approximately 2.30 acres of property located at the east end of Homestead Avenue. Recommendation: The Department of Community Development recommends that the City Council conduct a meeting with the petitioner regarding zoning of the property and that the petitioners must assume the City's bonded indebtedness upon annexation and direct that a petition be a?j~roved to be circulated. ~und / Anal~ Per 35A. 14.120 RCW, prior to the circulation of a petition for annexation, the initiating parties, who shall be the owners of not less than 10% in value according to the assessed valuation for general taxation of the property for which annexation is sought, shall not/fy the legislative body of the City in writing of their intention to commence annexation proceedings. The legislative body shall meet with the initiating parties to determine (1) whether the City will accept, reject, or geographically modify the proposed annexation area; (2) zoning of the propm'ty; and (3) whether or not the City will require the assumption of all or a portion of the existing City indebtedness by the area to be annexed. Approval of the legislative body is a condition precedent to the actual circulation of a petition for annexation. A formal petition must be signed by the property owners of 60% in value according to the assessed valuation for general taxation of the property for which annexation is petitioned. The petitioning parties own 100% of the propcn-ty proposed for annexation. The petitioners will be available at the February 1 meeting to discuss the issues with Council. The south side of Homestead Avenue is unusual in that only the middle property is within the City limits w/th propm-ties on both sides being in the County. The subject site has been sm-ved with City water for many years and cannot be accessed from the portion of Mt. Angeles Road that is currently within the County due to topographical constraints (see attached map and aerial photograph). Therefore, an interjurisdicfional problem could exist in an emergency response situation. It is logical at this time to consider annexation of t~e property, which is within the Port Angeles Urban Growth Area. '~Sue Roberts, ~s~an~ Planner - Attachments 87 89 pORTANGELES_ . WASHINGTON, U.S.A. CiTY COUNCIL MEMO DATE: TO: ]FROM: SUBJECT: February 1, 2005 CITY COUNCIL SUE ROBERDS, ASSISTANT PLANNER Request to Annex Property - Andrews Ahlvers Road Summary: A request to circulate an annexation petition has been filed by Ms. Francis Andrews to armex approximately 34.46 acres of property located northwest of the intersection of Laurel Street and Ahlvers Road. The property is situated between the Independent Bible Church site and Valley Creek. Recommendation: The Department of Economic and Community Development recommends that the City Council conduct a meeting with the petitioner regarding zoning of the property and that the petitioners must assume the City's bonded indebtedness upon annexation and direct that the petition for the property east of Valley Creek be approved to be circulated Background / Analysis: Per 35A.14.120 RCW, prior to the circulation of a petition for annexation, the initiating parties, who shall be the owners of not less than 10% in value according to the assessed valuation for general taxation of the property for which annexation is sought, shall notify the legislative body of the City in writing of their intention to commence annexation proceedings. The legislative body shall meet with the initiating parties to determine (i) whether the City will accept, reject, or geographically modify the proposed annexation area; (2) zoning of the property; and (3) whether the City will require the assumption of all or a portion of the existing City indebtedness by the area to be annexed. Approval of the legislative body is a condition precedent to the actual circulation of a petition for annexation. A formal petition must be signed by the property owners of 60% in value according to the assessed valuation for general taxation of the property for which annexation is petitioned. The subject property is owned by Ms. Andrews and her sisters. As such, the petitioning parties own 100% of the property proposed for annexation. Ms. Andrews will be available at the February I meeting to discuss necessary issues with the Council. As the property east of Valley Creek cannot be served from the County without a crossing of Valley Creek, an interjurisdictional problem could exist with the development of the eastern portion of the site in an emergency response situation. It is therefore a logical action to consider annexation of the property east of Valley Creek. The portion of the property west of Valley Creek is only accessible from the County without a crossing of Valley Creek. The area west of Valley Creek is outside of the Port Angeles Urban not m x t on. "Sue Roberds, As/stant Planner Attachments 91 WASHINGTON, U.S.A. CITY ATTORNEY William E. Bloor City Attorney [4531] Dennis Dickson Sr. Assistant City Attorney [4532] Candace Kathol Legal Assistant [4536] Diana Lusby Legal Administrative Assistant [4530] Jeanie DeFrang Legal Administrative Assistant [4530] Teresa L. Pierce Legal Records Specialist TO: City Council FROM: William E. Bloor, City Attorney DATE: February 1, 2005 Legal Department - Need for Full-Time Position SUMMARY: Currently the Legal Department has no full-time staff positions, except for the 2 attorneys. In 2001, the Legal Department did have one full- time staff employee. For part of 2003 and 2004, that was reduced to a 1/2-time position. In the 2005, it was increased to a 3/4-time position. It has not been filled yet. We recommend that it be increased to a full-time position, as it was through the first half of 2003. ACTION: Forward to the City Council a recommendation to reinstate a full- time position for the Legal Department. DISCUSSION: The Legal Depadment now employs 6 people: 2 attorneys who are employed full-time; 2 Legal Administrative Assistants who job-share, a position for 30 hours per week; a Legal Assistant (paralegal) who works part time at 24 hours per week; and a Legal Records Specialist who currently works 20 hours per week. So at this time, the Legal Department does not have any employee, apart from the 2 attorneys, who is in the office on a full-time basis. In 2001 and through the latter part of 2003, the City Attorney's Office did have one full-time employee, in addition to the attorneys. In the 2005 budget, the 1/2-time position was increased to a 3/4-time position. Subsequently, we re-evaluated that and now recommend that it be changed to a full-time position. The reasons for changing this to a full-time position include the following: Workload and the need for continuity and a full-time staffperson: The Legal Department currently handles 3 functions: property management, criminal prosecutions in District Court, and all civil 95 matters relating to the City. In the last year, the number of criminal cases has remained approximately the same. However, the complexity of the cases has increased and this increases the workload. The duties of property management have increased significantly over the last 18 months. In addition, the workload in the civil depamnent has increased significantly. We feel that the increase to a full time position is justified for several reasons. During the majority of the time that the Legal Records Specialist position was staffed half-time, the police department was operating below author/zed strength, and thus the number of misdemeanor and gross misdemeanor case filings had actually decreased. With the addition of the 3 recently hired officers, the number of misdemeanor and gross misdemeanor case filings has and will increase to that of former levels. Thus, there will be more files to open, close, monitor, and process. We have implemented greater use of technology and other efficiencies. Nevertheless, with the current staffing, it is difficult just to meet critical deadlines. Office efficiency would increase by having the continuity provided by at least one full-time staff person. Currently all the office staff are part- time on one schedule or another. Sometimes this creates inefficiencies and difficulties in regard to coordination of large and ongoing tasks. A full-time person would help to eliminate these problems. It is important that we have at least 1 staff person, in addition to the 2 full time attorneys, that is in the office full time. This will provide some consistency and continuity in staffing that is not possible when all of the support staff is part time. In addition, the Legal Records Specialist position will function as the person who has most front desk contact with the public. The will allow the Legal Assistant and Legal Administrative Assistants to be more productive. The quality of candidates: The increase to a full-time position, alone, will not eliminate the heavy workload now faced by the Legal Department. To fill this position we will need a smart, adaptable person. From preliminary evaluation, our assessment is that the quality of the candidates will significantly increase if we are able to offer this as a full-time position as opposed to a part-time position. 96 pORTANGELES WASHINGTON, U.S.A. CITY COUNCIL MEMO DATE: TO: FROM: SUBJECT: February 1, 2005 CITY COUNCIL Becky J. Upton, City Clerk/Management Assistant Selection of Special Meeting Date to Conduct Interviews for Planning Commission Summary: As of April 1, 2005, there will be six (6) vacancies on the Planning Commission. Staff has been seeking applicants and, as of the writing of this memo, ten (10) individuals have submitted applications for consideration. Recommendation: It is recommended that the City Council set a special meeting to interview candidates and possibly make appointments to the Planning Commission. Background / Analysis: At the present time, ten (1 O) individuals have submitted applications to fill the vacancies on the Planning Commission. The applicants are: Peter Ripley Kevin Snyder Edward Zoble Eric Neurath Elizabeth (Betsy) Wharton Michael "Doc" Reiss Thomas Meehan David Johnson Cherie Kidd Candace Kalish More applications may be forthcoming; however, in the meantime, Council is being asked to set a date to conduct a special meeting for the purpose of interviewing the applicants. The Council may opt to make appoinh'nents at the conclusion of the interviews or may choose to delay making appointments pending the receipt of additional applications. As an alternative, the Council may wish to make some appointments at that time, and defer other appointments until the time more applications are submitted. 98 Budget: There is actually sufficient money in the budget to cover this as a full-time position for the remainder of 2005. In addition, the City Attorney's office staff have recognized the importance of making this a full-time position and are willing to conserve in other areas. For 2005 this means, for example, there will be fewer dollars in our budget for office supplies and for travel and training. Additional Duties and Cost Savings to Citg: In an effort to control and reduce incarceration costs, it has been necessary to increase monitoring of those costs. Accordingly, in addition to reviewing the jail billings fi.om the Clallam County Sheriff's Department. · We also have assumed responsibility for monitoring the medical expenses and arrangement for the housing of prisoners in the Forks jail. Both of these can result in substantial saving to the City, but they do require detailed and consistent review. William E. Bloor WEB:dl G:~LEG ALibi EMOS.200$~Finance& Sa fct~Comm- FTE for CAO.011805 97 Board of Directors 2005 John Brew~ - President Peniasula Daily News - 417-3500 Sandy Long - Fice President Itly bitty BUZZ - 452-9010 ICqstin Tucker - Treasurer lC Tu~ker Accounting - 452-9749 T~n'y Roth- Secretary Northwest Duty Free - 452~556 Evan Brown - Director Brown's Outdoor- 457-4150 N~cessities & Temptatiom 105V2 East First Street RO. Box 582 Port Angeles, WA 98362 Phone: 360-457-9614 Fax: 360-457-9614 Email: pada@olypen.com 50RT ANGELES ASSOCIATION January 20, 2005 Michael Quinn City Manager City of Port Angeles PO Box 1150 Port Angeles, WA 98362 Dear Mike: The Port Angeles Downtown Association is pleased to submit the Program Manager's Quarterly Report for Washington State Downtown Revitalization Services Partner Cities. This report covers the fourth quarter of 2004. Statistics for the fourth quarter include: 4 - New businesses 0 - Relocations within Central Business District 0 - Relocation into Central Business District 1 - Business expansion 1 - Business failure/relocations out of CBD 5 - Interior/exterior renovation projects $ 2,220,000 Total Private Investment for quarter $ 1,733,000 Public Investment for quarter $ 2,411,150 Total Private Investment for the year, 2004. Two more buildings have changed ownership bringing the total sales to 27 of the 98 commercial buildings in Downtown since September 1997. If there are any questions concerning this report or if additional information is required, please contact me at 360-457-9614. Yours sincerely, Ada Holzschuh Executive Directo[ WASHINGTON STATE DOWNTOWN REVITALIZATION SERVICES LOCAL PROGRAM MANAGER'S QUARTERLY REPORT The local Downtown Revitalization program manager must submit a quarterly report to the state program by the I 0b of January, April, July, and October for the previous three months. This is required for the community to maintain status as a Washington State Tier System Associate or Panner-level city. The manager should attach two copies of materials that further profile activities that the local program has accomplished during the reporting period. ~anageress'sName:~ 4/,L ~ gOk2. KC'_HOH- City: & year that this report coversi ~urrent date:OI-Dq-rzq' Months ORGANIZATION · Please give a synopsis of the status of your downtown organization, and of any related organizational * The annual election for the Board 0f Directors was held in December. We had received 7 nominations for the Board plus the 6 current Board members wishing to nm for an additional term, for 7 positions. All 6 incumbent members were re-elected and one of the 7 new nominees was elected. Our new member board member is: Edna Petersen, Necessities & Temptations, 217 North Laurel St., Port Angeles, WA 98362 (360) 457-6400. Re-elected m the board are: Jan Harbick, Jack Harmon, Jelorma McClean, Sandy Long, Terry Roth, and Kristin Tucker. If any board members have changed, please provide an update for our mall/phone list (name, address, phone): * Edna Petersen, Necessities & Temptations, 217 North Laurel St. Port Angeles, WA 98362 (360) 457-6400. 2005 Board list enclosed. Election of officers will be at the first meeting of the year, January 12th. An updated list will be provided after the 12th. Current number of board members: 13 Current number of standing committee members: Organization: 14 Promotion: ~ Design: 6 Economic Restructuring Othar ( Parking ) 7 Other ( Pal on the Town ) 5 Other (Membership) 4 6 Current number of other volunteers: 19 Number of volunteer hours dedicated to program activity support this quarter: 679 New organizational materials (workplan, bylaws, evaluations, meeting forms, volunteer applications, grant proposals, reports to city council, brochures, etc.): * Art on the Town has developed a new Prospectus for artists for 2005/06. · Describe recent outreach activities conducted to build relationships with other organizations (presentations, meetings, correspondence, joint proj~ts): * We continue to work with Port AngeleS Forward, the City's Advisory Committee, on City projects for Downtown the next being the entrance to the Downtown. New trees mad landscaping · will be done on both sideS of the road as you come down the hill into the Downtown aren. There is also a proposal for a new Welcome to Downtown sign at the top of the hill. · We continue to work with the Red Lion Hotel to welcome conferences that come into thc city. PROMOTION · Give a synopsis of promotional activities just completed. Include name of event or activity, total cost, source(s) of funds, a short description of the event or activity, and an evaluation of its success: A. Thc Halloween 'Trick or Treat' event was once again a great success with an even larger crowd then the previous year. 2200 children received eundy from merchants and 200 had their photos taken, free of charge, in their costumeS. A costume conteSt was held after the trick or ~xeating was completed and was very successful. For the second year the Association gave away small pumpkins for children to decorate and return for display, judging, and prizes. Costs: $250 for adverfis'mg, $75 for pumpkins, and $315 for photographer and film. B. The holiday open house 'North Pole Stroll' was held the week before Thanksgiving end kicked offthe Open on Sunday campaign. This event was very successful the first day but the Sunday was disappointing. The committee is discussing having thc event on Friday and Saturday next year rather than Saturday and Sunday of having all 3 days. C. A new printing of wraps for Downtown Dollars along with laminating of the table tents was Done in November for the holiday sales of Dollars. Approximately $11,000 worth of certifieates were sold from Dec. 1 - 24t~. This is about the same as the saleS of the 3 previous years. D. The txaditional 'Community Tree Lighting' was thc largest turnout in years and likely the best, Certainly in the past 8 years. Thc mix of entertainment and the small lighted parade escorting Santa Was a real crowd pleaser. A number of people took photos of their children in front of the lighted VehicleS. Cost: $2,000. E. Our holiday issue of'Main Street' featured the new lighted basket that we will be using Throughout the Downtown, In addition to the street t~ee lights, during the winter months. · Highlight other promotional activities in the planning stage, include dates if known: * Tbe committee is finishing thc new Calendar of Events for 2005, for dislxibufion In January. Because of the difficultieS in organizing the 'Lighted Parade' as a feature event, this year, the committee will begin work in Janumy. Alger people saw the few lighted vehicles escorting Santa, they hfid a better understanding of what we were propos'mg for a parade and a number of Businesses have already signed on for next year as has the Lion's Club. Summarize new promotional materials (newsletters, brochures, logos): * Continuing the single shent of information once a month called 'Downtown U1Mate'. List key media contacts, press releases, interviews, and articles done during the reporting period: * We continue to work with the Peninsula Daily News on the Main StreetTM magazine. * Providing Press Release for our 'Morning Mingle' General Meetings and Halloween activities. * There is a concerted effort to create more press releases. Design and Art on the Town are receiving more press and hopefully the Promotion Committee will begin releases. DESIGN · Have there been any public improvements completed in the past two months that affect the downtown revitalization program (List source(s) of funding and total cost of each project): none * The historic Carnegie Library building has been restored and has opened as the new museum. Funding for the project came fi.om state grants and the City. Total cost: $1.2 million. · Describe any other current design activities (sign changes, ordinances, design review, workshops, Contests, historic district formation, building surveys, clean-up days, etc.): The committee has sponsored window displays for Halloween and ChrisWaas. For the winter season, all the trees in the Downtown have been lit with clear lights. Due to extensive damage to the lights last year, we purchased all new lights and that made the installation much easier for the organization we hired to install the lights. Total cost for the project this year is $4800. Additionally, we supplied 15,000 lights for the City's Christmas tree that is in the Downtown fountain area. We are continuing with the ongoing clean up of Downtown storefronts and sidewalks through project - 'Super Sleuth' or 'Your Front Door'. The committee, with a local artist, has designed a new bench and trash receptacle to replace the 4 different styles of benches and the 2 different styles of trash containers - one being a 55 gallon drum. A prototype, of each, has been built and will be presented to the Parks Director for comment. Each piece is designed with diamond shapes and each bench has different art works on the back rest. ECONOMIC RESTRUCTURING Current number of businesses in the project area: _226 Current number of employees in downtown: 1536 Retail Sales: __9 up/down fi.om previous quarter 2 up/down fi.om previous year Explain any efforts made in assisting individuals or groups to obtain financing for an improvement project List efforts to provide other business assistance and education: 10,1 * Thc committes's plnnning to b~gin the 'Over Morning Coffee'where each month we will invite 4 or 5 business owners to visit with us, tell us what they need, and network with other ovme~. Give a synopsis of your cffo~s in market analysis and business reeruitm~mt. Snmmarize any other Economic Restructuring activities: · Continue to assist in showing property to prospective new businesses and to provid~ information on * Storefxont vacant space is 1% of the total available space. COMMENTARY · Critical local issues, problems, and successes: * We continue to work with the City on the Gatmvay proj~'t. Cummtly, a number of business owners are ciroulating a petition to stop the project as it continues to mount in cost, now $10.2 ~ bom the $6.5MIL ora few years ago. · Goals and challanges of upcoming pr°j~ts: · . Interesting stories, information, and discoveries to relate: 105 PORT ANGELES DOWNTOWN ASSOCIATION/MAIN STREE'I'r~ BOARD OF DIRECTORS - January 1 - December 31, 2005 John Brewer, Peninsula Daily News- President PO Box 1330, Port Angeles, WA 98362, (360) 417-3500 (fax) (360) 41%3521 Evan Brown, Brown's 112 W. Front, Port Angeles, WA 98362, (360) 457-4150 (fax) (360) 452-6298 Barbara Frederick, Individual 515 South Laurel, Port Angeles, WA 98362, (360) 417-3551 hm (360) 452-2998 Jan Harbick, 5 SeaSuns Bed & Breakfast 1006 S. Lincoln, Port Angeles, WA 98362, (360) 452-8248 (fax) (360) 417-0465 Jack Harmon, Victoria Express 115 East Railroad Avenue, Port Angeles, WA 98362, (360) 452-8088 Marlene Hulett, Regence Blue Shield . PO Box 1307, Port Angeles, WA 98362, (360) 417-8308 Jelorma McClean, Port Angeles Farmers' Market 222 Rife Road, Port Angeles, WA 98363, (360) 457-6186 Sandy Long, itty bitty BUZZ - Vice President 110 E. First, Port Angeles, WA 98362, (360) 452-9010 Edna Petersen, Necessities & Temptations 217 North Laurel, Port Angeles, WA 98362, (360) 457-6400 Terr~y Roth, North West Duty Free - Secretary 115 East Railroad, Port Angeles, WA 98362, (360) 452-8556 Charlie Smith, Lindberg & Smith Architects 319 S. Peabody, Port Angeles, WA 98362, (360) 452-6116 fax (360) 452-7064 Kevin Thompson, Family Shoe Store 130 W. Front, Port Angeles, WA 98362, (360) 452-3741 Kristin Tucker, Kristin Tucker Accounting - l'reasurer/Past President PO Box 2032, Port Angeles, WA 98362, (360) 452-9749 (fax) (360) 457-4698 106 Port Angeles Downtown Association/Main StreetTM New Jobs, Businesses, & Rehabilitation Investment In Downtown Port Angeles October 1, 1997 - December 31, 2004 68 More Businesses 643 More Employees Over 136,000 sq. ft. of unoccupied space, now filled 185 Faqade/Exterior/Interior Renovations (includes signage) 27 Buildings Purchased Occupancy rate up from 87% to 99% Private Investment - $16,231,094 Public Investment - $8,064,000 PO Box 582, Port Angeles, WA 98362 (360) 457-9614 pada~olypen.com 107 PUBLIC WORKS PROJECT STATUS REPORT FOR JANUARY, 2005 CHANGE ORDERS FOR ACTIVE CONSTRUCTION PROJECTS COSTS SHOWN INCLUDE APPLICABLE TAXES I PROJECT BUDGET ORIGINAL PREVIOUS CHANGE REVISED TITLE CONTRACT CHANGE ORDERS CONTRACT AMOUNT ORDERS THIS AMOUNT MONTH Elwha UG Rebuild II 02-11 $150,000 $119,108.34 $0.00 $0.00 $119,108.34 Peabody Waterline 02-20 $2,000,000 $1,271,101.94 $0.00 $18,762.66 $1,289,864.60 Fairmount Pump Sta 02-26 $850,000 $699,653.33 $5,238.36 $0.00 $704,891.69 Crown Pk SS/Storm 03-12 $950,000 $914,767.54 $18,469.23 $26,586.40 $959,823.17 Leachate PS #1 04-10 $70,000 $43,697.97 $0.00 $0.00 $43,697.97 Oak Street Sewer 04-03 $70,000 $26,955.87 $0.00 $57,000.00 $83,955.87 PUBLIC WORKS CONTRACTS/PURCHASE ORDERS APPROVED BY CITY MANAGER CONTRACTOR OR VENDOR (COSTS SHOWN INCLUDE APPLICABLE TAXES) [ PrpOJoe~t-[ DESCRIPTION AMOUNT UPCOMING PUBLIC WORKS CONTRACTS (NEXT 30 DAYS ESTIMATED DATES SHOWN ) PROJECT ADVERTISE FOR BID OPENING START END TITLE BIDS CONSTRUCTION CONSTRUCTION Waterfront Trail January 25, 2005 February 1, 2005 February 5, 2005 February 15, 2005 Repairs 05-05 N:~PWKS~ENGrNEERhMGKRPT~Change Orders\Change Orders 2005~co01-05.wpd 108 WASHINGTON, U.S.A. CITY COUNCIL MEMORANDUM DATE: To: FROM: SUBJECT: FEBRUARY 1, 2005 CITY COUNCIL~~/~ Marc Connelly,~Deputy Director of Recreation POSSIBLE TIMELINE FOR POOL PROJECT IMPLEMENTATION Summary: The City Council requested that staff prepare an outline of a schedule for completing the William Shore Pool Project. Recommendation: None. This report is for information only. Background / Analysis: The following outlines a potential timeline for decisions related to the construction of a replacement oftheWilliam ShorePool. This schedule takes two perspectives. One perspective considers a possible November 2005 bond issue and the other considers a November 2006 bond issue. Other options are available to the Council such hosting bond elections in a primary election or via special election. Also attached is a copy of an analysis of ballot measure issues prepared by staff in June of 2004 for your information. November 2005/2006 Option Pool Options Public Workshop (March 9) Gather public comments on pool locations, plans, costs, and other issues. Parks, Beautification Commission (March 17) The Commission would receive report and discuss public comments received at the workshop. Parks and Facilities Subcommittee (April 6) The Facilities subcommittee would receive and discuss comments gathered at the March 9 workshop. Parks, Beautification Commission (April 21) The Commission would consider and make a site recommendation to the City Council. Parks, and Facilities Subcommittee (Mayl 1) The Subcommittee would consider and make a site recommendation to the City Council. City Council (May l~l)] 0 City Council would consider (and approve) Commission and Subcommittee recommendation. Bond Campaign (May 18) Bond campaign begins unless decision involves locating pool on property adjacent to YMCA. Construction Documents (3 months) Development of Construction Documents begins unless to be funded via bonds. City Council (September 13, 2005 or September 22, 2006) City Council deadline to notify County of its intention to place measure on November ballot. Election (November 1,2005 or November 7, 2006) Bond Sale (ask Yvonne) Assume (Jan. 1) City site building permit Mid January completion. (1.5 weeks) Bid Process Mid March Completion. (2 months) Construction May 2005/2006-June 2006/2007 (13 months) Staff shows this schedule to illustrate the fast track the project could take, although staff would not recommend a 2005 bond issue due to challenges with being able to validate due to high voter turnout in the 2004 general election. If Council were to decide to defer to 2006 many of these dates of course could slide. Having almost one full year to inform the public on the issue would be ideal. Considerations on schedule should the decision involve YMCA is identify the time necessary to negotiate an operating agreement and implement the process to rezone residential property adjacent to the YMCA if any of those are to be used for the foot print of the building or associated parking needs. Staff estimates the rezone process as approximately 2 months. Cc. Mike Quinn, City Manager Glenn Cutler, Director of Public Works and Utilities 111 Ballot Measure Issues Election Types There are three types of elections, including general elections, primary elections, and special elections. Election Dates General Elections are held on the lst Tuesday in November. In 2004 the General election will be held on November 2®. · Primary Elections are generally held on the 1st Tuesday in September with exceptions. 2004 will be an exception, as the Primary will be held on Tuesday, September 14th. · Special Elections can be held at the time of the choosing of the agency requesting the election. However, the agency then would bear the full cost of the election. Election Costs · General Election-According to the Clallam County Auditor it can be reasonably expected that the cost for a measure to be placed on the ballot during the general election to be $15,000. · Primary Election-According to the Clallam County Auditor, the cost for a bond measure to be placed on the ballot during a primary election would cost between $25,000 and $30,000. · Special Election-According to the Clallam County Auditor the cost of a stand along ballot measure could cost upwards of $35,000. Voting Requirements · General Obligation Voter Approved Bonds-According to the Clallam County Auditor a super majority or 60 percent voter approval is necessary along with meeting validation requirement for passage. A validation requirement for voter- approved bonds is that at least 40 percent of the voters participating in the prior general election cast ballots. · Maintenance and Operations Funding It is my opinion that there be a maintenance and operations levy either in the form of a special levy or a levy lid lift be included on the ballot as a separate proposition. For the purposes of perpetual funding and easier voter requirements I would recommend a levy lid lift instead of a special levy. Enough new facilities have been added since 2001, and more are proposed to be added to the responsibilities of the Department of Parks and Recreation. Given the state of the local economy and recent budget trends we can expect that a lower of the level of maintenance service on all facilities new and existing without additional resources such as those possible through either a maintenance and operations levy or a levy lid lift. Accordingly, I believe it is prudent to ask the voters to support the incremental costs associated with the new recreation facilities such as the pool, Valley Creek Estuary Park, East Entry Gateway, Francis Street Park, Carnegie 112 Library, Olympic Discovery Trail, and eventually the Gateway Center Plaza, as well as the Conference Center waterfront park-site. Levy lid lift- (RCW 84.55.050) This approach may be available to Port Angeles. Although the City may already be at its statutory limit this may be a future option if assessed valuation increases in the community. The City of Kirkland just recently passed a levy lid lift for parks maintenance and operations. A levy lid lift can be placed on the ballot committing new revenue for a specific purpose such as parks maintenance and operations. This approach provides for potential perpetual funding and grows with the base levy. Voter requirements require only a simple majority. Further follow-up on this will be necessary with the Finance Director, City Attorney and Bond Counsel if we are to consider this approach. Special levy-This approach provides for funding on a limited duration period, most likely one year at a time and would require renewal. The special levy voter requirements include the need for a super majority and 40 percent validation. Timing/Companion Measures · 2004 General Election-The general election for 2004 will be on Tuesday, November 2nd. Clallam County requires 45 days notice to place a bond measure on the ballot. This means notification would be necessary by September 17, for a November 2nd ballot. Complicating this notification requirement is the possibility of the measure being placed on the primary ballot and failing. Ifa decision were to be made to resubmit, the decision would need to be made by the City Council in less than three days time. · 2004 Primary Election-The 2004 primary election will be held on September 14th. Notice to Clallam County would be required by July 23~a. Consequently, the process for making a decision not only for the pool location, but the decision to place on the ballot early is a challenge based upon the limited time available. The advantage of placing a bond measure on the primary is that if it fails either closely by the majority decision threshold or fails because of low voter turnout the City retains the ability to resubmit quickly and still have relatively low thresholds to meet for validation. Companion Measures-According to the Clallam County Auditor there are no other bond measures or special levies planned for either the primary or general election at this time. The County is planning however, for at least 3 statewide initiatives and lately those have been propositions related to taxes. The reason that it is important to be aware of possible companion measures on the ballot is that too many taxing issues may have a negative affect on voter acceptance. If this is the case, consideration should be given to potentially reducing the risk and delay submitting the measure for a vote to another less "busy" ballot. 113 Staff/Council Work Session It may be useful to have the staff and the City Council conduct a session regarding voter approved General Obligation Bond Issues and Maintenance and Operations levies to familiarize each other on the rules, regulations and the various issues affecting the placing ora measure on the ballot. Bond Committee Prior to or immediately after the determination to proceed with a bond issue, a Bond Committee usually forms to begin advocating for passage of the particular bond measure. This happens by law independently of any action of the City. City staff, and elected and appointed officials may not campaign for the bond in their capacity as representatives of the City of Port Angeles. Nevertheless this is a key component to developing a successful bond project. A bond committee also needs sufficient campaign time and a clear message or project to sell. It is worth noting that should the Lincoln Park site be chosen for the pool no building elevations or exact location has been developed. The presumption of all cost estimating has been to use the conceptual floor plan for the pool renovation as it currently exists as the plan for the Lincoln Park site as well. 114 115 117 WASHINGTON, U.S.A. DEPARTMENT OF COMMUNITY DEVELOPMENT DATE: February 1, 2005 To: City Council Members FROM: Sue Roberds, Assistant Planner SUBJECT: Department of Community Development Planning Division December and Year End 2004 Report APPLICATION TYPE: 2004 Rezone 3 Municipal Code Amendment 0 Conditional Use Permit 9 Conditional Use Permit Extension 0 Conditional Use Permit Appeal 0 Annexation 0 2003 2002 2001 0 5 6 2 1 2 10 7 14 0 3 0 0 2 0 0 2 0 Subdivision 12 5 1 0 Binding Site Plan 1 1 0 0 Short Plat 7 5 6 1 Appeal of Short Subdivision Decision 0 0 2 0 Boundary Line Adjustment 10 4 10 4 Home Occupation Permit 3 Retail Stand Permit 1 Bed and Breakfast Permit 0 Variance 4 Minor Deviation 8 Street Vacation 6 Parking Variance 0 Shoreline Substantial Development Permit 5 Shoreline Exemption 5 Wetland Permit I Environmentally Sens. Areas 6 Annexation 1 SEPA ENVIRONMENTAL POLICY: Determinations of NonSignificance 43 Mitigated Determinations 0 Determinations of Significance 0 SEPA Appeal 0 3 2 2 1 1 2 1 2 6 10 6 11 3 0 1 4 1 4 0 0 0 5 6 7 1 2 4 0 0 0 2 14 4 0 0 0 31 38 33 0 0 4 0 1 0 0 1 0 DEVELOPMENT REVIEW: Building Permits Code Enforcement Clearing and Grading Permit *Started calculations in 9/01 178 145 99 * 31 99 10 2 4 o 6 --6 __/7 407 248 207 146 119 Department of Community Development Planning Division Performance Measures 2004 I 3 7 14 21 30 45 90 120 Permit Type Day Days Days Days Days Days Days Days Days Admin Reviews 4 Appeals Binding Site Plan 1 Boundary Adjusts. 11 Building Review 15 55 Clearing/Grading Conditional Use 8 Environmental Reviews 29 6 Home Occupation 3 Minor Deviation 4 Municipal Code Amend 1 1 Planned Res Develop 1 Retail Stand Permit 1 Rezone 2 Shoreline Permits 3 2 Shoreline Exempt. 4 Shod Plat 4 Subdivision 10 1 Temporary Use Permit 4 Variance 3 Street Vacation 2 1 Totals 15 67 49 13 26 4 3 8% 38% 28% 7% 15% 2% 2% T:\Budget\performancemeasures04.wpd 120 "ID · ~o ~oo ooo ~,:0 ooo~ 8 WATER DEMAND 2OO3 · 2004 LAST YEAR TO DATE TH~S YEAR TO DATE ETrED STORM DRAINS JETTED SYSTEM TVINSPECTED 'r RAINFALL 2003 12004 - 10 Year Average 10 YR AVG. TOTAL TO DATE THIS YR TO DATE 123 ELECTRICAL USAGE 2003 · 2004 LAST YEAR TO DATE TEMPERATURE ~2003 w2004 - 10 Year Average T~TAL LANDF LL D SPOSALj TOTAL CrTY TONS 40.7% THIS YR TO DATE (TONS) LAST YR TO DATE 4 14.2% CO. COM. HAUL 3 9.1% I CITY OF SEQUiM 0*8% 2 D.M./OLYMPIC DISPOSAL 25,2% PUBLIC WORKS & UTILITIES DEPARTMENT QUARTERLY REPORT Installed 13 1" x 5/8' and two 2' new watar services and dropped In 12 meters Repaired 19 water service leaks, moved 1 service, pedormed 186 utility locates Redalrad fourteen 2," and one 6' water main breaks; Removed one water meter Changed out one 4" and ten l'x 5/8" inoperable water meters Located transmission line blow-off at Vallay Creek, east of Park Avenue Replaced two fire hydrants and complated repairs on two others Assisted contractors (Snelson and Jordan) on large water projects Removed wire and buried old water main on Garliog Road Wildlife management meeting Completed rate analysis for landfill and collections Collected 3t4 tons for recycling and 200 tons of yard waste Hired a Ufl[ity Worker [ and a Scale Attendant Revetment project meeting with various agency representatives Solid Waste Advisory Council meeting Processed 84 new requests for recycle bins Raised sewer manhole at 6th & 'F' streets; Cleaned methane trap at the Landfill Pumped out holding tank at compost building at the Landfill; Jetted monthly lines Removed, repaired and reinstalled pump #1 at PS ~6 and pump #1 at PS ~8 Assisted primo Construction with temporary pressure main hook up at PS #1 Repaired wldng at Steven's School stormwatar pump station and tested system Completed utility locates as requested & inspected combined sewer ovediow sites Cleaned rocks out of pipe at storm manhole north of pump station #1 Jetted for Street Division on the Watedront Trail east of Rayonier Mill site Repaired stormwatar pump station damaged by vandalism at Stevens School NPDES monthly reports showed no violations Worked with Iccal dischargers on pretreatment issues Performed process control on secondary treatment system Completed weekly O & M on Landfill leachate collaction and treatment system Conducted CSO sampling and inspections per new Pollution Prevention Plan Completed monthly EPA and DOE testing and monitoring Collected samples and performed analysis for plant rerating work Repaired belt on belt press; Repaired scrapers on the secondary circular clarifier Installed new seals and bearing assembly on lab heat pump Portable flowmeter demonstration was conducted with Sigma and E&H flowrnetars Attended Paciltc NW Clean Water Assn. annual conference Consultant conducted workshop on the Trickling FiflerlSolids Contact process Work Orders: 437 Service Requests from Denvers Tire: 175 Service Orders: 87 Full maintenance services by Denvers: 55 TOTAL WORK ORDERS: 612 Fleet module update training - year end cioseout Fleet master certification training Mechanic ASE certifications completed and passed Attended Department of Ecology workshop Pumhased two pool vehicles and one light pole trailer Bid opening an sewer inspection equipment and rejection of all bids Finalized the 2005 budget; Purchased a sidewalk sweeper Auctioned off surplus equipment in conjunction with local agencies Shop improvements - oil reels 122 meters were tested and replaced 46 street lights were repaired; 179 Iocatas were completed Morse Creek sluice gate repairs completed Christmas decorations put up Completed Elwha Cable Replacement, Phase II Repaired asphalt at 13 ug[ity Cuts; Patched potholes citywide Skin patch on east end of Lauridsen Blvd, bridge approach OveP/lay 8' x 120' to address drainage issues on 4/5 allay west of Penn St. Replaced sidewalks at WW'PP due to waterline replacement Replaced 8' x 5' sidewalk panel at 1725 E. 6th due to water utility cut Excavated and repoured 86' x 5' sidewalk at 312 E. 5th due to heaving Assisted Engineering with Park St. storm drain iocata Responded to oil spill on 300 blk of 4th St; Built spoils bins at Corpyard Citywide.mowedJgraded/gravelad/ground/educted/swept/applied dust control ag Conducted sidewalk survey in proposed chip seal project Raised sunken pavers in crosswalk on 200 blk of 1 st Street Repaired damage to pedestrian fence on Park St. caused by vandalism Cleared fallen tree at 1st and Vine streets; Prepared all equipment for winter Installed catch basin and storm drain line in Front StJRailroad alley General sign. buiEiing, and key maintenance, and curb painting - cltywlae Repaired pedestrian railing on west 8th Street bddge Repaired Oak Street stairs; Repaired and resupported floor at Carnegie Libr~ Constructed new signs to reflect new rates at the Landfil~ Assisted with special event - Jingle Bell Run Constructed new "No Trespassing' signs for Po[ice Depadment Performed annual safety inspection of Corpyarb Monthly crew safety meetings; Aflended first aid and flagging classes 8th St Bridge Replacemnt design supberf Tree Trimming contract completed Etwha Dam removal mitigation support Concrete Cylinder Pipe Replacement construction support Gateway Project design supperf Fairmount Pump Station construction supperf Pump Station 1 & 3 construction support Eioctrica[ Underground Rebuild Elwbe Line c~nstruction support Park Avenue Sewer design suppo~ Oak Street Sewer construction support Western UGA Utilities Extension design support City Pier design support Landfill Closure/Transfer Station support Downtown Phase itl design supporf 125 City of Port Angeles Parks, Recreation & Beautification Commission December 16, 2004 Minutes II. III. Call to Order: The December 16, 2004 Parks, Recreation & Beautification Commission meeting was called to order at 7:00 p.m. in the Vern Burton Community Center meeting room by Chairman, Diana Tschimperle. Roll Call Members Present: Chuck Whidden, Damaris Rodriguez, Diana Tschimperle, Jack Harmon, Patrick Deja and David Shargel. Members Absent: Ron Johnson, Elizabeth Minor and Markie Miller. Staff Present: Marc Connelly, Glenn Cutler, Mike Puntenney and Amber Cottam. Audience: Jan Bock and Rotary Club Members, Len Beil, Bill Roberds, Wes Doty, and Jim MacDonald. Approval of Minutes and Audio Tape Disposition: Jack Harmon requested an addition to the minutes be made clarifying that Mike Quinn left it unclear on whose idea it was for the reorganization. Jack Harmon moved to accept the Parks Commission minutes of November 18, 2004 and dispose of the tapes in the usual manner. Pat Deja Seconded. Upon call for the call for the question, motion carried unanimously. IV. Items from the Audience not on the Agenda: None V. Legislation: None VI. Other Considerations: A. Arthur Feiro Marine Life Center Annual Report: Staff reminded the Parks Commission that the operation of the Marine Life Center is managed through the administration of a three-year operating agreement between the City and Peninsula College, its selected operator, and is subject to the approval of the City Council. Barbara Martin, Marine Life Center Director, was on hand to present the annual report. She explained that their main objective for 2004 was to build visibility beginning with the creation of a new brochure and diversifying their programs. Parks Commission December 16, 2004 ] 27 Ms. Martin continued with an in-depth overview of Marine Life Center Programs during her tenure, focusing on this past year. Ms. Martin also outlined future plans for new programs and building remodel. The Parks Commission commended Ms. Martin on her dedication and enthusiasm in operating the Marine Life Center. Parks Department Reorganization: Glenn Cutler, Public Works Utility Director and Mike Puntenney, Deputy Director. Operations updated the Parks Commission on the subject of how the reorganization will be accomplished in respect to absorbing the Parks function into the Operations area. Mr. Puntenney said that due to similar tasks and equipment needs, the parks maintenance function can be easily partnered with the street division. Parks maintenance will keep its identity and perform the same tasks while sharing talents with the street division. Glenn Cutler added that 2005 would be a transition period to see if the reorganization works. If it doesn't, something different will be examined. In the meantime, everyone will be flexible and sensitive to the identity of those in Parks and Street. Pat Deja asked what measurements would be considered, at the end of the year, to tell if the reorganization is working or not. Mr. Cutler responded that facets of everyday maintenance to keep the city running would be considered. Feedback from user groups, complaints, and feedback from the Parks Commission would also be considered. David Shargell asked if the role of the Parks Commission would change; would they be more involved with parks and less with recreation? Mr. Cutler responded that discussions would be held regarding the interfacing. Dialogue will also be held on interfacing with the City Council, the Parks, Recreation & Beautification Commission, and the three councilmembers who have oversight in this area. Marc Connelly pointed out that since the Parks, Recreation & Beautification Commission was formed by resolution, any changes would need to be made by City Council. Loomis Building Restroom Proiect Update: Marc Connelly summarized the joint venture between the city and the Noon Rotary Club to complete the Loomis Building sewer line and restroom project. The city will provide the labor for trenching the sewer line and the Rotary Club will finish the construction. Once the project is 2 Parks Commission 'l ~)8 December 16, 2004 finished the building will incorporate a kitchen, new restrooms and become easier to maintain. Following the distribution of drawings for the Lincoln Park Loomis Building restroom addition, Bill Roberds presented an overview for the completion of the Loomis Building as the Noon Rotary Club's Centennial Project. Mr. Roberds explained there would be some start money available from an insurance claim when the restroom near the Longhouse burned to the ground two years ago. The Building Association's Future Builder Program will lend a hand with framing and construction. Pat Deja moved to accept the Loomis Building addition concept. David Shargel seconded. Upon call for the question, motion carried unanimously. William Shore Memorial Pool Renovation Proiect Update: Marc Cormelly updated the Parks Commission regarding the current status of the evaluation for the William Shore Memorial Pool. Currently there are three sites remaining for further location study. These include the city hall site in the Peabody Street parking lot between 4th and 5th Streets, staying on the current site, or in the area of the YMCA (Y). City staff is working with the architect who is developing several plans. These plans will be brought to a public workshop, similar to the workshop held on the 8th Street Bridges. The community will then have an opportunity to look at the options and make comments. The YMCA is conducting a separate study and plan. The public will be able to compare both of these proposals side by side at the workshops. Jack Harmon asked for the cost to renovate the existing pool compared to the estimated cost to rebuild a new pool. The original renovation cost was between two to four million dollars, a new pool would cost approximately five to six million dollars. Jan Bock felt the public is sadly left out of all information concerning the pool renovation. The pool issue is being discussed at the pool by users using the only information they have available and what the paper publishes. She questioned the additional amount of money to build a new pool compared to the renovation. Parks Commission December 16, 2004 Et Mr. Cormelly responded that the new facility is approximately 7,000 square feet larger which drives the cost. In addition, the cost of demolition must be figured in to building a new pool on the original site. Mrs. Bock also asked how the city can fund a bond with city money and yet let the YMCA mn it. Why doesn't the YMCA build their own pool? Mr. Connelly responded that this is a question that has not been completely answered. With public input, this is a policy question the City Council will ultimately answer regarding who will be operating the pool? Mrs. Bock understands the YMCA wants the city to fund and build the pool, and then the Y wants to run it. She asked for clarification on this issue if it were the troth or not. Mr. Connelly responded that the YMCA's plans are unknown. The Y did make a presentation to the City Council's Parks & Facilities sub-committee asking the city to consider their proposal for the pool to be built with a bond issue and a joint venture agreement between the YMCA and the City to operate it. During the meeting the details of this proposal were not forthcoming. Diana Tschimperle explained the public would make the choice, not the City Council, by voting yes or no on a bond to build the pool. Chuck Whidden asked if the school district was involved with pool funding. Diana Tschimperle answered that it was not, due to budget constraints. Mr. Connelly pointed out that the school district does pay for staffing when they use the pool. Parks~ Open Space and Recreation Plan: The Parks, Open Space and Recreation sub committee met previously to review the draft plan. Mr. Connelly distributed the committee's general comments regarding the draft plan to the Parks Commission asking them to review them over the holidays. He noted that discussion would be held with Parks Commission in January. Diana Tschimperle asked about the timeline for City Council and public review. Mr. Connelly mentioned the Parks Commission would be involved with setting this time. Chuck Whidden asked if the surplused 7th & D Park has been disposed of. Mr. Connelly didn't know the status of the park, except the play equipment has been removed. Damaris Rodriguez asked about the meeting schedule status for Lions and Elks parks renovation projects. Mr. Connelly responded that after January 4 Parks Commission December 16, 2004 '1 30 2005 the committees will be reconvened and the projects put back on track. VII. Adjournment: Diana Tschimperle c~ntertained a motion to adjourn to Executive Session. VIII. Executive Session Adiournment IX. Adlournment: Damaris Rodriguez moved to adjoum the regular session. Pat Deja seconded, upon call for the question motion unanimously carried. 5 Parks Commission December 16, 2004