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HomeMy WebLinkAboutAgenda Packet 07/20/2010L AGENDA P%TNGBLES CITY COUNCIL MEETING .� th 321 East 5 Street 4' WASHINGTON, U.S.A. July 20, 2010 w REGULAR MEETING - 6:00 p.m. AGENDA ITEM First � Page RECOMMENDATION Note: The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The items of business for regular Council meetings may include the following: A. CALL TO ORDER — REGULAR MEETING AT 6:00 p.m. B. ROLL CALL PLEDGE OF ALLEGIANCE CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. Korean War Remembrance Week B-1 1. Accepting - Gerry Retella 2. Police Department Volunteer Recognition ---- 2. Presenting - Police Chief Terry Gallagher PUBLIC COMMENT C. CITY COUNCIL REPORTS WORK SESSION 1. Utility Projects Bond Financing D-1 1. Finance Director Ziomkowski; I" Reading; Continue to August 3, 2010 2. Stormwater Rate Reduction Incentives ---- 2. Terri Partch, Civil/Utility Engineer 3. Mid -Year Finance Report /Finance Newsletter D-4 3. Finance Director Ziomkowski E. LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS as determined by City Manager or Councilmember F. CONSENT AGENDA 1. City Council Minutes for June 8 and 29, July 6 and 13, 2010 F-1 1. Accept Consent Agenda 2. Expenditure Approval List: 6/26/10 to 7/9/10 for $2,146,235.61 F-12 3. Electric Utility 2010 Resource Plan, Set Public Hearing F-42 4. Bonneville Power Administration (BPA) Residential Demand F-44 Response Cooperative Agreement & Consultant Agreement Amendment 5. Consultant Agreement Amendment No. 3 for Commercial & F-46 Industrial Demand Response Grant Program . 6. Energy Northwest Interlocal Agreement Modification No. 2 for the F-48 Morse Creek Hydroelectric Project 7. Consultant Selection for Stormwater Engineering Services F-50 8. Lodging Tax Advisory Committee Appointments F-53 9. College Substation Switch Replacement, Project CL06-2010 F-55 10. Amendment to Friendship Diversion Contract F-56 G. ORDINANCES NOT REQUIRING PUBLIC HEARINGS • NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK July 20, 2010 Port Angeles City Council Meeting Page - 1 AGENDA ITEM Page RECOMMENDATION H. RESOLUTIONS NOT REQUIRING PUBLIC HEARINGS I. OTHER CONSIDERATIONS 1. Interlocal Cooperative Law Enforcement Agreement - Lower Elwha 1-1 1. Approve Klallam Tribe (LEKT) J. PUBLIC HEARINGS - QUASI-JUDICIAL (7:00 P.M. or soon thereafter) K PUBLIC HEARINGS — OTHER (7:00 P.M. or soon thereafter) 1. North Olympic Library Levy Lift K-1 1. Open Public Hearing; Accept Comments; Consider Resolution 2. Byrne Justice Assistance Federal Grant K-6 2. Open Public Hearing; Accept Comments. L. FINANCE M. INFORMATION City Manager Reports: 1. Parks, Recreation and Beautification Commission - May Minutes M-1 2. PA Forward Committee — June Minutes M-4 3. Public Works & Utilities Department — 2nd Quarter Report M-8 4. Building Permit —Monthly Report M-14 5. Olympic Region Clean Air Agency (ORCAA) Reports M-15 N. EXECUTIVE SESSION - O. ADJOURNMENT - PUBLIC HEARINGS Public hearings are set by the City Council in order to meet legal requirements. 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 matters may be controversial, and the City Council may choose to seek public opinion through the public hearing process. NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK July 20, 2010 Port Angeles City Council Meeting Page - 2 0 PUBLIC INTEREST SIGN—UP SHEET PRT��II ELES W A S H I N G T O N, U. 5, A. DATE OF MEETING: July 20, 2010 You are eneourazed to sign below if: CITY COUNCIL REGULAR MEE'T'ING LOCATION: Citv Council Chambers 1. You are here to listen to the City Council discussion on a particular agenda item; 2. You want to speak during the Public Comment period of the agenda. If several members of the public are interested in a particular agenda item, the Mayor may move that item so it is discussed earlier in the meeting. Also, the Mayor may use the information provided to organize the Public Comment period. During the Public Comment portion of the meeting, the Mayor will invite citizens to talk with the Council about topics that are not scheduled for public testimony on the evening's agenda. Prior to the start of the "Public Comment" portion of the public hearing, all persons wishing to be heard are asked to sign in with the Clerk, giving their names and addresses, and topic. The Mayor may arrange the order of speakers so that testimony is heard in the most logical groupings. 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 15 minutes for this comment period. At the discretion of the Mayor, these time periods may be lengthened or shortened. Following any public comment, the Mayor may allow time, limited to five minutes, for response from City Council members and/or City staff, No speaker may convey or donate his or her time for speaking to another speaker. If many people wish to speak to a particular issue, the Mayor may limit the total amount of time dedicated to that single issue. Written comments may be submitted into the record of a Council meeting by presenting the written. document to the Clerk prior to the meeting, in which case a copy of the document will be provided to each Council Ntember, but the document will not be read aloud; or a document may be distributed to the City Council, with a copy to the Clerk, by a speaker while the speaker is addressing the Council. x..Y Name' .. .K+�e+' ...�• 4�` iil mess AgendTnpic' Ian o Speak rM . �scx.x:,ry _ i�iQlzRBRu I ?!2 0, 57�Sr, PA FS5� 2 L! �amme 01 N 011, ,a• `A Oy N �D Ll Ge, 6V- >J 3 � -0/N nVt — Y( G:1Group\C1erk\FormslCounci1 Attendance Roster.doc PUBLIC INTEREST SIGN-UP SHEET ..:�., Name" .. .. Address : 'a'�.:':. '.. ,.' ..r �r:�. Vii; �.; .:,,,.. A ends .Ta is: ;., g P Plan `ta;5 eak P 14 ti 0 0 �e C--)( Loj ON I c�e zi sr Y N YIN YIN YIN YIN YON YIN YIN YIN YIN YIN YIN YIN YIN YIN YIN YIN YIN YIN YIN YIN - YIN YIN YIN YIN YIN G:1GrouplClerk\ForrnslCouncil Attendance Roster.doc PROCLAMATION In Recognition of KOREAN WAR VETERANS REMEMBRANCE WEEK July 25 - 31, 2010 WHEREAS, the Korean War erupted on June 25, 1950, when the Democratic People's Republic of Korea Army (NPRK - North Korea) invaded the Republic of Korea (ROK — South Korea); and WHEREAS, more than 2.5 million Americans served within Korea and 33,629 lost their lives during of which 122,000 were from Washington State with 528 Washington State residents and 6 residents of Clallam county killed in action between 1950 and 1953; and WHEREAS, during the months of January, February, and March of 1953, on Hills Spud, Hill 355 (Little Gibraltar), fifth Battle for Old Baldy, third Battle for Porkchop Hill, Outpost's Vegas, Reno, Carson, Hill 101/Ungok over 600 men were killed and over 900 men wounded in action; and WHEREAS, during the months of April, May, and June 1953, on Outpost Harry, the Hook, Outpost Elko, and the fourth Battle of Porkchop Hill, Battle of Boomerang over 174 men were killed and 824 men were wounded in action; and WHEREAS, during the month of July, 1953 the fifth Battle of Porkchop Hill, Battle on Outpost Berlin (Boulder City), East Berlin, Battle of Kumsong, Sniper Ridge, Hill's 111 and 119, Outpost Dale and Outpost Westview, over 552 men were killed and over 1200 men were wounded in action; and WHEREAS, the Korean War tentatively stopped nearly 57 years ago on July 27, 1953, as a cease fire treated ended overt hostilities. NOW, THEREFORE, I, Daniel A. Di Guilio, Mayor, ON BEHALF OF THE CITY COUNCIL OF PORT ANGELES, do hereby proclaim the week of July 25 - 31, 2010, as Korean War Veterans Remembrance Week and urge all citizens to join me in remembering the thousands of American service personnel who made the ultimate sacrifice during and after the Korean War. Daniel A. Di Guilio, Mayor PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) WAC:)A mAJ� Ri 4 MSS - - 231 Ali �c� Nn,X, � akbo `��; ..,j� ; S,.���` � L., f] t � - � �s�•—L6 �i I _�/�.�Z��C. �� �� L' � j Lt, , �C�r `� c� � d �' �' ,- _ �� ir�r. RETURN PETITION TO: Citizens fot4iscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING. PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Gov. Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Reps. Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind.' This agreement should not be interfered with. I Print Name Sign Name Address Phone/e-mail (Opt.) /V/NA h i c_h a rel s %�l�c i 2 t s- -a �, ,..� �� AA, u/a 993,4 2 CAR -L— Q41s T c� 7 .0 1 `1.1:,c., ::,C�t-.-' y .�� •j oY : � � r��i� �77 I � /_.,i i 22..3 -tucic.Aj ci�r✓ii PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BU's' OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman .Dicks; USEPA Region 1.0 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 .Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. RETURN PETrnON TO: Citizens for Fiscal Restraint & Public AcouW'bfliiy — PO Box" c 2633 — P.A. , Please record below the name, address, & phone or e-inail of the person circulating this petition: WA — 98362 f PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does -not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER. INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean tip the pollution its mill left behind. This agreement should not be interfered with. Name( print) L )Qr.,Ls oil Name( sin Address Phone/email (ontiona a 17Ly 4 6�. 0 7D li�> c k x r 902 �O % - "$'.2 —� ? IT LILL x boa,/�/ 3.�o s IA41o,� 4;&, ar eah RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98.362 Please record below the name, address, phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created withou input, yet publicly funded with $1.5 Million. & We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not wwit taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Address 36 0 -77-V-- 3 :� 196 R-ETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING .PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire, Senators Murray and Cantwell, Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove, Director of Ecology Sturdevant ; Commissioner of Public Lands Goldmark, Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. HarborWorks was created without public input, yet publicly funded with $1.5 Million We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC.has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) vD a:a:..o, norn�cBo4arB Boar• InAmP_ Af:dY•P_CC.nhone or email) n1 �'O 0, VVN' .PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BLrY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 1.0 Administrator McLerran; Representati ves Kessler & Van De We.ge; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks .Board does not represent us. The HarborWorks Public Development Authority was created without public input; yet publicly funded with $1.5 Million. We do not want .HarborWorks involved with hiture decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAY'ONJ.ER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. I� RETURN PETITION TO: Citizens for Fiscal .Restraint & Public Accountability — PO Box 2633 —P.A., WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: "I PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BL1Y OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldrnark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want .HarborWorks involved with .future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. G , f� �,� �,� 6! 2. /mss T? -1717 / 7 111/ M, '14V'40 4V'40 G./ _ i �<_ 4, ( L � �1.1�..�ii%r��il! .RETURN PETITION TO: Citizens for Fiscal .Restraint & Public Accountability — PO Box 2633 —P.A., WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWo.rks Board does not represent us. The HarborWorks Public Development Authority was created without public input, vet publicly funded with $1.5 Million. We do not want HarborWorks involved with .future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC, has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Please record below the narne, address, & phone or e-mail of the person circulating this petition: • I I.1 /V_V i/ ., PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with fiiture decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more -public funding spent on this cleanup. .RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. nt) N-ame( sign) Address Phone/email r, MM1216 'T ON W, A WON "s ME W. RETURNPETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.S Million. We do not want HarborWorks involved with fiiture decisions about the Rayonier property or its cleanup. We do not want taxpayers inade responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONI:ER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. oInl3 u�5�"/� 6 3 RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability —PO Box 2633 — P.A. , WA — 98362 Please record below the name, address. & phone or e-mail of the person circulating this petition: z PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public :Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Box 2633 — P.A. , All — 98362 .Please record below the name, address, & phone or e-mail of the person circulating this petition: -$D53 PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark, Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not \vant HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIE.R INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean LIP the pollution its mill left behind. This agreement should not be interfered with. Name( yrint) Name( • dd op 0, LL ; • Aier Q.1 "e ., ,. .i I%. 6 • r .r.. _ ..��A�.WORAN �- , M111 vi 'Awa _j 11 r4to N�/a! .• '. �r RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability —PO Box 2633— P.A. , WA — 9$362 Please record below the name, address. & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 1.0 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The Ha.rborWorks .Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with S1.5 Million. We do not want HarborWorks involved with future decisions about. the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup, We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Nam QLkywec.a-61c , c�DvIA RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell.; Congressman Dicks; USEPA Region 1.0 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Stur•devant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks .Board does not represent us. The HarborWorks .Public Development Authority was created without public input, yet publicly 'funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or Its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONI.ER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind.. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) RETURN .PETITION TO: Citizens for Fiscal .Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The Harbor -Works .Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want H:arborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean Lip the pollution its mill left behind. This agreement should not be interfered with. Name( print l;l RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 —P.A., Please record below the name, address, & phone or e-mail of the person circulating this petition: WA — 98362 u� PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Cregoire; Senators Murray and Cantwell; Congressman DicksUSEPA Region ]D Admii nistrator McLeran;Representatives Kessler & Van De Weve; Senator Hargrove; Director of Ecol;ogy StLudevant; Commissioner of Public Lands Croldmark; Director of Puget Sound Partnership Dicks, City Council of Port. Angeles; Port Angeles Port Commissioners The .HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public iiaput, yet Publicly funded with $1,5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for tlae cleanup. We do not want any more public funding spent on dais cleanup. RA YON LER INC. 1i as a cIeanLip agreement in place with alae State holding Rayonier FULLY responsible for pay] ng to clean. ul) ffic pollution its mill left behind. This agreement should not be interfered with. !F Wn Irk 2116 5:, ,- F RETURN PETITION TO; Citizens for Fiscal tWtraint & Public Accountability — PO Box 2633 —P.A., WA — 98362 Please record below the name, address, & Phone or e-mail of the person circulating this petition: PETITION APPOSING PUBLIC FUNDING FOR HARBQR.W0R�S TO BUY OR CLEAN UP THE RAYDNIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Legion 10 Administrator McLerraai; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevamt; Commissioner of Public Lands Goldtna,rk; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Part Angeles Port Commissioners The 'HarborWo.rks .Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want .HarborWorks involved with .fiiture decisions about the Rayonier property or its cleanup. We do not want. taxpayers made responsible for the cleanup, We do not want any more public funding spent on this cleanup. RAYCNI.ER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean LIP the pollution its mill left behind. This agreement should not be interfered with. RETURN PETIT IO.N TO: Citizens for Fiscal :Restraint & Public Accountability — PO Box 2633 — P.A., WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region. 10 Administrator McLerran; Re presentatives Van De Wege; Senator Hargrove; Director of Ecology Sturdevant• Commissioner of Public Lands Goldniark; ect Puget Partnership . Dicks, City Council of Port Angeles, Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 'Million. We do not want. HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more pubic funding spent on this cleanup. RAYON IER INC. has a cleanup agreement iii place with the State holding Rayonier FULLY responsible for paying to clean upthe Pollution its mill left behind. This agreement should not be interfered with, R.ETt):RN PETITION TO: Citizens for Fiscal Restraint P.A WA 98362 Please record below the name, address, & phone or e-mail of the person circulating this petitioll. Paul R. Lamoureux 602 Whidby St. __._-• Poet Angeles, WA 98362 _ .----—.�___—_.—_� ___� --_-• `� T-- PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print)(( Name( sijzn) Address Phone/email (optional) c�,�l�at,r r =TY92 LA4�2 Ve. ,E no, 416-7-4,�31 RETURNIPETITION TO: Citizens foi Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , Please record below the name, address, & phone or e-mail of the person circulating this; petition: Paul R. Lamoureux 6172 Whidhy St. S % — T T Port Angeles, WA 98362-6772 P . WA — 98362 PETITION OPPOSING PUBLIC FUNDING FOR :HARBORVL ORKS TO BUY OR CLEAN UP THE RA'YDNIER PROPERTY To: Governor Gregoire, Senators Murray and Cantwell; Congressman. Dicks; USEPA Region 1.0 Administrator Mc.Lerran- Representatives Kessler & Van .De W°ege; Senator Hargrove; g Director of Ecology Stur-devant; Commissioner of Public Lands Croldrrrark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The :HarborWorks :Board does not represent us. The Ha.r•borWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want H arb orW arks involved with future decisions abolrt the Rayonier property or its cleanup. We, do not want. taxpayers rna.de responsible for the cleanup. We do not watt any more public funding spent on this cleanup. -RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean. Up the pallzrtion its mill Left behind. This agreement should not be interfered with, Name rine Name sign, Address Phone/email (optional) r RETURN PffrriON TO: Citizens for Fiscal Restraint & Public Accountability -- PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone. or e -snail of the person circulating this petition: jam' PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Names from email approval Address Phone/email (optional Pat_Slaten 5816 Old Mill Road, Port Angeles 98362 360-460-7078, sweetwater(aolypen com Chris Devoney 135 E Ahlvers Road — Port Angeles Nancy Martin 2340 Samara PI. — Port Angeles Robert Pasco - 662 Toad Road - Port Angeles, Wa 98362 360-683-8979 Judith Pasco — 662 Toad Road - Port Angeles, Wa 98362 360-683-8979 Barbara L. Mason 2015 West 7th Street, Port Angeles, WA 98363 bmason a olypen com Larry Little 1234 East 2°d Ave — Port Anizeles, Wa 98362 Michelle Little 1234 East 2nd Ave — Port Angeles, WA 98362 :PET.ITION OPPOSING PUBLIC FUNDING :F -OR HARBGRWC)`RKS TO BUY OR GLEAN UP THE RAYONIER PROPERTY To: Govemor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerr•an; Representatives :Kessler & Van. De We e- Senator Hargrave; Director of Ecology Sturdevant; Commissio.rZer of Public Lands GoIdrnark; Director of Puget Sound Partnership Dicks; City Council of Part Angeles; Part Angeles Port Commissioners The Harbor -Works Board does not represent us. The HarborWorks Public Development Authority was created without public irnpLit, yet p ab 11 cl y funded with $1, S Mil I oil. We do taxpayers made resplo�sifale for the cleanrWorks involvedup, re do not want about the Rayonier property or its cleanup. We do not want. p any more public funding spent on this cleanup. RAYONJER INC. has a cleanLIP agrreennent in place with the State holding Rayonier Fl ILLY responsible for paying to clean LIP the Pollution its mill left behind. This agreement should not be interfered with. :fame rint Name si n. Address Phone/email-- o tional De cal Yo�n� � L r 1070 k Pt ]o Ye e pe Sefv,,m., 141A 9WAX law-* .,Mn RETURN PurrriD.N TO. Citizens for Fiscal Restraint &. Public Accountability - PO Box 2633 - P.A. , WA - 98362 f'le record below the name, address; & phone or e-mail of the person circulating this petition: "T f�,j L'�T- �ati ) D -7D ► P4Lo 1 'r ��'r�� C �...,� ,.,. n 0 V, 2, DL, „f< z/- n C2 : q Z r - Cl�� PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYGNIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. RETURN PETITION TO: Citizens for Fisc4l Restraint & Public Accountability -- PO Box 2633 -- Please record below the name, address, & phone or -e-mail of the person circulating this petition; WA -- 98362 1 lei y � 1qn PETITION OPPOSING PUBLIC FUNDING NG FOR HARBORWORKS �.- TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) rlrA". RETURN PETITION TO: Citizens for Please record below the name, address, & phone or e-mail of the person circulating this petition: Ed Grier 360-457-8625 ed.grier@wavecable.com Z`'' 1845 E. Woodhaven Lane - - -- - ped Angeles. WA 98369-9343 — 11"F 1TUMN OPPOSING PUBLU' 14J ADING FOR HARIMItW0 1 TO B U V OR CLEAN UP `i'I 111, VON IER PRO l'I{ WIN io�vCr!rtrr (irvpolrc" Senators Murray and. Cantwell; Congressman Dicks; JSLPA Region 1n Ad inInislnil oi- McI erran, I:epic sc iit;il1ves Kessler (V Van De Wege; Senator Hargrove; Director c�i' I :colt�gy Stun -de waft; Commissioner of I'u%I c Lards Galdtlln,lk; I)i1vc;lr)r o PugeI ,;lurid I)ar'tnership Dicks; City Council of Port AngeIes Porl A i i p c I c s Iloi,t Conlinissioners I'lic 1 1,1rlwrWoCks 1.3oiird. does not rcpr•ese:tlt lls. The HarborWorks 1)111)11c DeveIopiiicrlt Aut lority was created without public 1111)111, yet publicly hinded with $ 1.5 M11110r1. Wc: do not want BarborWorks invcylllitllre decisions abotil dic Rayonier 1)ropcily or its cleanup. We do not want. lil.11ayers made responsible Tor th6 CIC;111111). We Clo [lot w<lllt ally rrr(ire Imide ltrllding spent till thls cleanup. RAYON IFAZ IN('. h;rs a cIcanup a.gre:erllcril ilr 1)1.ice wilh'tIic til;llt: Iit) Iding Rayonier ITJ1,1,Y rc:s1miis1ble for paying to clea:ll LIP thG 1ri111u11011 ils imli left, behind. This i1141-cellicill shmild n(o I)c inlerfered with. Name( print) . Name( ! i�rla) � Address 1111ollelcmail (optional) PIC;rsi; reGor'd I)c:lo V 111c. n:1r11� .:lticlrctis, & l)II011 err e -n1;111 of the. person circulating this petition: Paul R. Lamoureux 602 Whidby St. Port Angeles, WA 98362 PETITION OPPOSING PUBLIC FUNDING FOR HARBORWGRKS TO BUY OR CLEAN UP THE RAYONIER. PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Adminisuator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port. Angeles Port. Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 -Million. We do not want HarborWorks involved with future decisionk about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left:behind. This agreement should not be, interfered with. me( mint am M lf_'� 112 - 9753 RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — P[3 Box 2633 P.A. , Please record below the name, address, & phone or e-mail of the person circulating this petition: inPaul R. Lamoureux 602 Wnidby 3t. Port Angeles, WA 98362 P�at •tea r>' PETITION OPPOSING PUBLIC FUNDING FAR HARBORWORKS TO BUY OR CLEAN UP THE RAYANIER PROPERTY To. Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 14 Administrator McLerran; Representatives Ressler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port. Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want. taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYDNIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name print)Narne sin Address Phone/email optional a rp �-- 6`� Le I �V /_S RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — P© Box 2533 -- Please record below the name, address, & phone or e-mail of the person circulating this petition: Paul R. Lamoureux 602 Whl&y St. Port Angeles. WA 98362.6772 X360 � � c.o,iv\ WA -- 98352 PETITION OPPOSING PUBLIC FUNDING FOR I-IARBORWORI TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; .Director of Ecology Sturdevant ; Commissioner of Public Lands Goldmark, Director of Puget. Sound. Partnership Dicks; City Council of Port Angeles; Port. Angeles Part Commissioners The HarborWorks Board does not represent us. HarborWorks was created without public input, yet publicly funded with $1.5 Million We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want. taxpayers made responsible for the cleanup, We do not want any more public funding spent on this cleanup, RAYONIER INC.has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name print) Name(�si n Address Phone/email (optional) 14 + q -� r - ----. _ ..---------��_,_._, ��.� ��... ........... p..x... ix.v max. �ax.ius.■�. A0 Y>.exn A^— PETITION OPPOSING PUBLIC FUNDING FOR HARBO_R_WOFRKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this clean RAYONiER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) '' C51 --e-41,55 2_ q�-3 �1_2_ RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability -- PO Box 2633 — P.A. , WA — 95362 Please record below the name, address, & phone or e-mail of the person circulating this petition: 0A OV 0 PETITION OPPOSING PUBLIC FUNDING FOR HARBOR'L ORKS TO .BUY OR ,CLEAN UP THE RAYONIER PROPERTY To: Goverrio:r Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region ld Administrator .McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology St4u•devant; Commissioner- of Public Lands Gol.dmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Dort Angeles Port Commissioners The HarborWorks .Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Mrlltor3. We do not want I-HarborWorks involved with fixture decisions about the Rayonier property or its cleanup. We do not wart. taxpayers made responsible for the cleanup. We do not want any more public funding spent ori this cleanup. 'RA YONIER INC. has a cIeanup agreernent in place with the State holding Rayonier FULLY responsible for paying to clean UP the pollution its mill left behind. This agreement should not be interfered with. Name Tint Name si n. Address Phone/email (optional) LC_a5 H01r eo.rer.r -: -.fir II C-�_ C16 �Z'_l At, U­��uA 1$353 '17+ r—A, V-1, w'l ct's5L'V RETURN PETITION TO; Citizens for Fiscal :Restraint & Public Accountability — PO Box 2633 —P.A., WA — 98362 Please record below the name, address, & phone or e-mail of'the person circulating this petition: /. , .. �4' r �- r<- rte.. c 6 n k -.1 -� i r, -797 `a, S �, 6, PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To, Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Vary De Wege; Senator Hargrove; Director of Ecology Stuadevant; Commissioner of Public Lands Goldmark; Director of Puget :Sound Partnership Dicks; City CounCi.l of Port Angeles; Port Angeles Port Commissioners The .HarborWorks Board does not represent tis. The HarborWo.rks .Public Development Autho,nty was created without public Input, yet publicly funded with $1.7 M111ion. We do not want :HarborWorks Involved with future decisions abottt the Rayonier property or its cleanup. We do not want. taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanttp. RAYONIER INC. Inas a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill Left behind. This agreement should not be interfered with. Name rint Name sign) Address Phone/email (optional) A. 17, . RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — P❑ Box 2633 — P.A. , WA — 98362 Please record below the narne, address, & phone or e-mail of the person circulating this petition; Alwje_, ) &W64aC.i'� j;1.2 6L),, "r: A.er!)"V(-- -,e 6s: �t)l7 91p,36.2 �'X- e� yZ.S"" .r0 PETITION OPPOSING PUBLIC )FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. print) Name( A (_"'j'% v, j -e -776Z RETURN PETITION TO: Citizens for- F' cal Restraint & Perl Please record below the name, address, & phone or e-mail of the p T, Marx d R Fal it (onti ?A. '34�V5> '52Pz vfr�k S A) 5,6'5- �-Z 7-01 Vountability — PO Box 2633 — P.A. , 'WA — 98362 circulating this petition: PETITION OPPOSING PUBLICFUNDING FOR HARBORWORKS TO BUY OR CLEAN IJP THE RAYONIER PROPER'T'Y To: Governor Gregoire; Senators Murray and. Cantwell; Congressman Dicks; USEPA Legion 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldrmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about. the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONTER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWO.Rxs TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port. Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with fixture decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. - RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability—PO Box 2633 — P.A. , WA— 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: '�' %Os-� PETITION OPPOSING PUBLIC FUNDING FOR RARBORWORKS TO BUY OR CLEAN LSP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and. Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; kepresentatives Kessler &. Van. De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development. Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any mo re public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Boi Please record below the name, address, & phone or e -mai Z of the person circulating this petition: P.A. , WA -- 98362 PETITION OPPOSING PUBLIC UNDI...NG FOR HARBDRWORKS TO BUY OR CLEAN UP THE RAYONIE t PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman. Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van. De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget. Sound Partnership Dicks; City Council of Port Angeles; .Port. Angeles Part Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the .Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Please record below the name, address, &. phone or e-mail of the person circulating this petition: M cv' PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, "yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Lq si n r42 g60 yoy-ao?' RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability E PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN IJP THE RAYYYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLeiran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorlcs Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We 'do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean Lip the pollution its mill left behind. This agreement should not be interfered with. I❑ i'64gsus Q RE'T'URN PETITION TO: Citizens for Fiscal Re'Araint & Public Accounta ility — PO Box 2633 — P.A. , WA — 95362 Please record below the name, address, & phone or e-mail of the person circulating this petition: Paul R. Lamoureux Port . Port Angeles. WA 98362.6772 PETITION OPPOSING PUBLIC FUNDING FOR :HARBORW©RKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor- Gregoire; Senators Murray and. Cantwell; Congressman Dicks; USEPA. Region .10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldrnark; Director of Puget Sound Partnership Dicl<s; City Council of Port Angeles; Port Angeles Port Commissioners 1 The HarborWorks Board does not represent cis. The HarborWorks :Public Development Authority was created without public input, yet publicly :funded with $1,5 Million. We do not want Harboi-Works involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for• the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER. INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible For paying to clean. LIP the pollution its mill left. behind. This agreement should not be interfered with. print] Name( sip -n) Address Pbonelemail (optional) ,!Name[ .ke'cx P of . ZSR, gg3zo m8l ) , COPA RETURN PET TION To: Citizens for l iscal Restraint &. Public Accountability —PO Box 2633 —P.A., WA — 98362 Please record below the name, address. & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLeiran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly fiinded with $1.5 Million. We 'do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean Lip the pollution its mill left behind. This agreement should not be interfered with. VJ,_6�- L=�, - 0 5c, MAa-- '123 -PP\ 9T,3(.Z PETITION TO: Ci Pleace rPnnrd helnw the name, inPaul R. Lamoureux 602 Whidby St. . Port Angeles, WA 98362 S(oo'4 (-1-01 1 3 for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 , & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBGRWORHS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman. Dicks; USEPA Region 1.0 Administrator M.cLerran; Representatives Kessler & Van. De Wege; Senator Hargrave; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners I'he .Harboi-Works Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $:I.5 Million. We do not wart HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYaI` I"ER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to cleat] trl) the P0111.111 Oil its 11) 111 left behind, This agreement should not be interfered with. me rint Name si n. Address Phone/email o tional ee' l 1.A 44 vT 0 1-4 i RETURN PETITIONTO: Citizins for Fiscal Restraint & Public. Accountability — PD Box 2633 —P.A., WA — 98362 Please record beleiv the Aare, address, & phone or e-mail of the person circulating this petitions: Jane'-14- 5 PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) Z657� 703 S /�/ /D���a c (260 ) z15 7- s / W/ � Y_ ,vc-.Gs 4- 4 1-7 _.6r r lot* lel; v t2 Al J RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability - PO Box 2633 - P.A. , WA - 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. <yb RETURN PETITION TO: Citizens for Fiscal Restraint"& Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: Paul R. Lamoureux 602 WMdby SL Pmt A.9ek., WA 48162-61M `3 PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name(sign) Address Phone/email (optional) ry P s .3 6 C✓ z a �t'34 Z 41 �"A- 12� �'71�-- �.�C-C.%�1.�,1—. (Q / �. (� �-i' S��, RJ �a l� J 1 �e-1C V V [ 3 S.�.TWLJsK_,(- 14-2 LDQ-ri�c�cc>q 9�( 9N42 zed2;;;�Va 7,129 IWA44,01,0e, RETURN PETITION TO: Citizen for Fisal estraint & Public Accountabili – PO Box�2633 – P.A. , WA – 98362 Please record below the name, address, & phone ,or e-mail of the person circulating this petition: o1, ,,, --S r '-R I — y 5 -JI rkve -?-"o --q � � 6 z PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van. De Wege; Senator .Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Hoard does not represent us. The HarborWorks Public'Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIE.R INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Narne( print) Name(si2n) Address Phone/email (optional) tiLa, CLar-k- u r- Z -, � F,sa S �'d3 -[o$- n �U r 1 C 1[ $* 011. p kt. nQ_t RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability— PO Bax 2633 —P.A., WA — 48362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HA.RBORWORKS TO BUY OR CLEAN STP THE RAYONIER PROPERTY ro: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners the HarborWorks Boarwith $1.5 Million. d does not represent us. The Harb input, yet publicly funded orWorlcs Public Development Authority was created without public We 'do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. ttAYONIER INC. has a cleanup agreement in place with the State holding Rayonier PULLY responsible for paying to clean up the pollution its mill left behind, This agreement should not be interfered with. Name( print) Name sin Address Phone/email (optional) too N s 7 -r6 �3 2`Z y 3'?ga RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 'lease record below the name. address, & phone or e-mail of the person circulating this petition: Paul R. Lamoureux sae wnidby St. Port Ange m WA 9W626772 `. q PETITION OPPOSING PUBLIC FINDING FOR HARBORWGRKS TO BUY OR CLEAN UP THE RAYGNIER PROPERTY To. Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Part Angeles Port Commissioners The HarborWorks Board does not represent us. The .HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved withfuture decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYON:IER..I.NC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean Lip the pollution its mill left behind. This agreement should not be interfered with. z 8 GCS '7P3( R C IN �] r o'J fXI f,' RETURN-PETITI N TO: Citizens for Fiscal (Restraint & Public Accountability — PO Box 2633 -- P.A. , WA — 98362 Please record below the name, address -phone or e-mail of the person circulating this petition: PEDTI.ON OPPOSING PUBLIC FUNDING FOR .HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Govern'or Gregoire; Senators 'Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege, Senator Hargrove; Director of Ecology Sturdeva.nt; Commissioner of public Lands Goldinaark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks .Board does not representus. The HarborWorks Public Development Authority was created without public inpLit, yet publicly funded with S1.5. Million. We do not want HarborWorks involved with future decisions about the Rayonier property or i.ts cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. IRAYONLER INC. leas a c:lcan Lip. agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its rill] left behind. This agreement should not be interfered with. Name - Name si n. Address Phone/ernail (optional) is i4 s 6N n, 0 11 A CL - li�--6 ,. --- Z i r -' �'I -tiles RETURN PETITION TO: 6fizens for Fiscal :Restraint & Public Accountability — PO Box 2633 — P.A. , Please record below the nc-nne, address, &. phone or e-mail of the person circulating this petition: VSA -- 98362 Ir?9 `�<- 1;.mf, SUN PETITION, OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO: BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler &'Van De'Wege;;Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks;- City Council of Port Angeles; Port,Angeles:Port Commissioners, The HarborWorks Board does not represent us. The HarborWorks Public: Development Authority was �created� without public input, yet publicly funded with $1.5 Million.. We, do not want HarborWorks involved with, future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent, on this cleanup. RAYONIER INC. has a cleanup agreement in. place with the State holding Rayonier FULLY responsible for paying -to clean up the pollution: its mill left; behind. This agreement should not be. interfered with. eL,L� RETURN PETITION TO: Citizens foi Fiscal'2estraint! & Public Accountability, — PO Box 2633 — P.A. , Please record below the name, address, & phone or e-mail of the person circulating this petition: Paul R. Lamoureux 602 Whidby St. Port Angeles, WA 98362 WA — 98362 A�� PETITION OPPOS TO BUY OR ING FOR HARBOR ►YONIER PROPER] To: Governor Gregoire; Senators Murray"and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Nameprint) • c � PDQ in On S W -F7 1 n) _ Add I—A W e e5 PA - em it o tional RETURN PETITIOP TO: Citizens forE-iscalRestrain & Public Accountability — PO Box 2633 —P.A. , WA - 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: 75/ orf �f��s 't' _��3G3 �3� 0� y/ 7 � y y 6 `1/ PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 1.0 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean LIP the pollution its mill left behind. This agreement should not be interfered with. ,AL KH 1A I LA� e c`�..i, ' -ice : �r� < < S � 5 �' �T 36;0 S ora _(W'oo RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: rte/ PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 1.0 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean LIP the pollution its mill left behind. This agreement should not be interfered with. r. wa ress 974.�- WIN via i ' . IMA -0 Md11 Zt ✓YI one/email (or)tional 2 U -g _5&lMSK. (fC"7 lam- l��Z X52-1531 1 y L( tr Vi w �r64- 8 08 / S 7a, RETURN PETI'T'ION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 ''lease record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( Narte Caave� (09S. Geta r St•r ,f qI' t. e0 email ;ee-1-15 &,2 ss�� RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: I 0_7 Ccu�o-�<,_, Tiny- 1219-a 6 36,, - �+1L�S PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) C, <, �I )n Lori Ike n n�cl y c,�i. L4 �f 14'4 N t d c0iiv UA 6sS D�.U1C� �1acr 715/ E-" ngAyP .3 '4_'�' S (te) GUAT?3(oo-)- 775-obo2- ��� QTR q�31R-z 'eit. 69-1-1 OU RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the na e, address, & phone or e-mail of the person circulating this petition: _O�L 1,io, �g PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAVONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. f The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million.tf We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean uptthe pollution its mill left behind.t This agreement should not be interfered with. Name( orint) Name( sign) Address Phone/email (optional) Jq &Cr�n -PQ-�� CA�� eh' `2 ,c..0 b&,ti.. . PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORK.S TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators MunTay and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler &Stan De Wege; Senator Hargrove; Director of Ecology Sti rdevant; Commissioner of Public Lands Golchnark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles, Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with filture decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. '3�6 V., ):So --? 'e J -7 e okm/q X fest— RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633— P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell;Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONMR INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for•paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) 97" eG�-: c� �j � �se�.�4, 7 � QJ� LeZ 1, 1 2� Do^k I mom RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region to Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) S, 34-�-- OkeA -A rl, -52t- 15" ( WLJP - D�''� 7.i RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability - PO Box 2633 - P.A. , WA - 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY 'To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent. us. The HarborWorks Public Development Authority was created without -public input, yet publicly ffinded with $1..5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill. left behind. This agreement should not be interfered with. �4j-a (-76 "Cl 7-/4 �R 0 A-,\`1- O Sa /''"d3�a - f�� -mss ff RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability - PO Box 2633 - P.A. , WA - 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: o A #_eR r � .� %l l xe ,_ /n 29 Lei �r ,v %,6,rz- A Ave. e,c.F r, L/A - -72 ,34 3 36 0• PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmarl Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or e-mail of the person c culatin this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY To: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; Representatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldman Director of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners The HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want taxpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. RAYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean up the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email o tional 5 f1 9�3 5 Z ccs r e oio, iZcp•. F'A 515- 2 - D 95'3 RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA -- 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: d% I ! o o f; �^� d'� /` ��ly�/ems 3E Y17 `7yQ Water Why's? Get answers at MANAGING OUR WATER An Educational Forum Wednesday, August ll, 2010 7:00 - 8:30 PM St. Luke's Episcopal Church Fellowship Nall 525 N. 51h Avenue, Sequim WA 98382 Learn answers to Dungeness Watershed water questions: Whose, What, When, Where, Why Now? Presentations on Water law Basics, Ngdrologv of the Watershed, Water Use Data a Trends, a Planning to Prevent Water Scarcity; with Q a A to follow. Informational displays a materials available before a after the program. Sponsored by the League of Women Voters of Clallam County www.lwvcla.org � \ -Y ... HARBOR -WORKS ! RAYONIER FIASCO ... An Olde' French proverb says: "When any {project takes too long - something is wrong". And something is radically wrong with the processes and players (listed below) that have been involved with -the local Rayonier site since 1997 with h6 productive resolution for the reclamation of those 75 acres. Rayonier, City of P.A., Port of P.A., Dept. of E.P.A., Wash. State Dept. of Ecology, Lower Elwha Klallam Tribe, Ennis Creek Restoration Trust. I offer this to them for processing. Rayonier donate the property to Battelle UMne Research Operations (for a charitable I tax write off - to pay cteanup cosfisy Battelle persue an ecological research division there; donate the water tank and the accompanying it and otit piping properties to the City for the State demanded storm water control regditrement; donate some acreage to the Lower Elwha lGaliam Tribe for cultural possession and historical advancement;. donate some acreage to tare Ere; Cry Rastm� / North 01y c La wid T hist; Arad donate some acreage to the Port of P.A. for additional local economic development. With those transitions complete, Battelle cavi there send a letter to the EPA telling them to go somewhere else vvitti their "Do N(if ir4l process; and rWtify the Wash -State COE to "go fund themselves" with their threatening $10,000 a day (taxpayer) penalty and their storm water requiramevA -by 2015. That dare then should put an end to Owre- iia biw ks Eniily w)d c,}�r"ve the above mentioned "parties" something useful and productive to do — Thank You Very Much.. Paul Lamoureux... (457-4564).__ ;-) ... • • �� ", 'r NGELES A, W A S H 1 N G T O N, U. S. A. CITY COUNCIL MEMO DATE: JULY 20, 2010 To: CITY COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCE DIRECTOR SUBJECT: WATER, WASTEWATER, STORMWATER ARID ELECTRIC UTILITY BONDS Summary: Several major capital projects are needed in the Water, Wastewater, Stormwater and Electric Utility Funds. Given the low interest rate environment, it makes good fiscal sense to finance these projects with long term bonds. By issuing bonds for these projects instead of paying as we go, the impact of any utility rate adjustments will be minimized for the ratepayers. Recon mendatiou Staff recominends that Council conduct the first reading 6f the -attached preliminary ordinances and approve proceeding with the bond sale on August 2nd and 3rd in order to take advantage of the favorable market conditions. The final ordinance will be presented at the August 3rd Council meeting. Backp_round 1 Analysis: Improvements are needed in the Water, Wastewater and Stormwater Utility Funds in the amount of $5,395,000 and in the Electric Utility Fund in the amount of $4,877,000. Customarily, capital improvements are financed over the life of the improvements rather than using cash and reserves. It is important to maintain sufficient reserves and liquidity for unexpected expenses and to meet the needs of the utility, as well as to meet the expectations of the bond rating agencies regarding reserve levels. The City currently has bond ratings with Moody's Investor Service of A 1 in each of these utilities. These are considered to be good ratings and it is imperative to maintain them in order to raise cost-effective capital in the bond market. While it is possible that the City will be seeking a bid from an insurance company for its bonds, it is uncertain whether this will be cost - beneficial. Insurance does not replace the reserve accounts for the Bonds. The debt service reserve accounts will be funded by cash from the respective utilities. The Water, Wastewater and Stormwater Utility Bonds, which will also be used to complete funded projects in 2011, will be financed over 25 years in order to minimize rate impact to ratepayers in the early years and also because long-term interest rates are so low. The Electric System Bonds will also be financed over 25 years. Q- 1 The Bonds will be sold through a negotiated sale with Seattle -Northwest Securities Corporation. The City has worked with Seattle -Northwest on several of its recent issues and has confidence in the firm. The City will use Piper Jaffray & Co. as its Financial Advisor, and K&L Oates as its bond counsel. There will be a presentation on the bond financing at this meeting. The sale of the bonds is projected for August 2nd and August 3rd at this time. At the Council meeting of August 3rd, the Council will be required to adopt the bond ordinances. Staff has reviewed possible funding options and recommends issuing bonds for these projects. Staff further recommends conducting the first reading of the attached ordinances in order to take advantage of the favorable market conditions. Attachments: l ) Project List. 2) Preliminary Water/Wastewater Bond Ordinance* 3) Official. Statement — WaterlWastewater Bonds 4) Preliminary Electric Bond Ordinance* 5) Official. Statement — Electric Bond * Due to the length of these documents, the official statements will be available on the City's website as supplements to the Council agenda packet. The website link. is www c ityof ap us/citvcoirrici lA genda.hnn: I i • D-2 • 2010 BOND SUMMARY 7/13/2010 • • Project ID Utility Project Title 2010 Bond DR03-2009 --------------------------------------------------------------------------------------------------------------------------------------------------- Stormwater 4th Street Stormwater Improvements 300,000 WW04-2008 --------------------------------------------------------------------------------------------------------------------------------------------------- Wastewater Carbon Scrubbers WWTP 20,000 WW02.2008 ----- -- --------------------------------- Wastewater Septa�e_Receiving Station WWTP ___ - 50,000 WW05.2008 ----- -- ------------------------------ Wastewater -- - Digester Mixing -Improvement WWTP ---------- 20,000-- WW05-2006 ----------------------------------------------------------------------------- Wastewater Sewer Trestle at Francis & 8th - 475,000 WT01.2008 Wastewater ----------- Advanced -Metering Infrastructure --Wastewater - ---- ---------------- 1,113:000__ WW02 2005 ----- Wastewater - -- - - -------------------------------- --_ _ - Plant De -Watering Improvements ----___ _ 20,000-_ WW01=2008 _ Wastewater _ Dry -Pourer Feeder Replacement_WWTP------ 20,000-- WW02-2010 --------- ----- - _ Wastewater Plant Programmable Logic Controller/HMI replacement 100,000 WT64-1999 Water - McDougal Pressure Subzone Improvements - - - 40,000 WT01 2008 ------------0--------------- Water -------- - Advanced Metering Infrastructure Water 's- -t-- ------------------ 1,113,000 WT03-209____ WaterTransfer_Morse --------- --------------------0--- r Creek WateLineo Clallam PUD 100,00 WT02-2009 ---------------------------------- Water Concrete Cylinder Pipe Replacement ---------------- -------- ----------- Total W/IIVW/SW Bond CL03-2008 Electric Advanced Metering Infrastructure - Electric CL05-2009 Electric Replace streetlights with low energy bulbs CL05-2010 Electric Pole Replacement ------------------------------------ir-i-------------- -------- . __- _.__ --------- Total Electric Bond --------------------------------------------------- Total 2010 Revenue Bonds ------------ 2,005,000-- 5,376,000 ---------------------------- 2,777,000 1,200,000 900,000 ----------------------------------------- 4,877,000 10.253,000 D-3 CITY OF PORT ANGELES, WASHINGTON ELECTRIC REVENUE BONDS, SERIES 2010 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance of electric revenue bonds of the City in the principal amount of $PAMT to finance the cost of improvements to the City's Electric System; establishing the date, form, terms, maturities and covenants of the bonds; and approving the sale of the bonds. Passed August 3, 2010 Prepared by: K&L GATES LLP Seattle, Washington TABLE OF CONTENTS Page ARTICLE I DEFINITIONS Section1.1. Definitions...............................................................................................................1 Section 1.2. Interpretation..........................................................................................................10 ARTICLE II FINDINGS AND DETERMINATIONS Section2.1. Projects..................................................................................................................10 Section 2.2. Parity Conditions...........................................:.......................................................11 Section2.3. Due Regard............................................................................................................11 ARTICLE III AUTHORIZATION AND ISSUANCE OF BONDS Section 3.1. Authorization of 2010 Bonds................................................................................11 Section 3.2. Registration, Exchange and Payments...................................................................13 Section 3.3. Redemption of 2010 Bonds...................................................................................15 Section 3.4. Partial Redemption................................................................................................16 Section 3.5. Notice of Redemption............................................................................................16 Section 3.6. Purchase of 2010 Bonds........................................................................................17 ARTICLE IV ISSUANCE OF ADDITIONAL BONDS Section 4.1. Authorization of Series of Additional Bonds........................................................17 Section4.2. Additional Bonds...................................................................................................18 ARTICLE V GENERAL TERMS AND PROVISIONS OF BONDS Section 5.1. Execution of 2010 Bonds......................................................................................21 Section 5.2. Lost, Stolen, Destroyed or Mutilated Bonds..........................................................22 ARTICLE VI CREATION OF SPECIAL FUNDS AND ACCOUNTS AND PAYMENTS THEREFROM Section 6.1. Electric Fund (formerly designated as the Light Fund).........................................22 Section 6.2. Bond Account (formerly referred to as the Bond Fund)........................................25 Section6.3. Investment of Funds..............................................................................................29 ARTICLE VII USE OF BOND PROCEEDS; CONSTRUCTION ACCOUNT Section 7.1. Construction Account............................................................................................30 ARTICLE VII FORM OF 2010 BONDS Section 8.1. Form of 2010 Bonds.............................................................................................. 30 ARTICLE IX COVENANTS TO SECURE BONDS Section9.1. Security for Bonds................................................................................................. 33 Section 9.2. Rate Covenant - General........................................................................................34 Section 9.3. Rate Covenant - Debt Service Coverage............................................................... 34 Section 9.4. Restrictions on Contracting of Obligations Secured by Revenues ........................35 -1- PV0391 DOT20391 2A5 07/20110 Section 9.5. Covenant to Maintain System in Good Condition.................................................36 Section 9.6. Covenants Concerning Disposal of Properties of System.....................................36 Section9.7. Insurance................................................................................................................37 Section9.8. Books of Account.................................................................................................. 37 Section 9.9. Covenant Not to Render Service Free of Charge..................................................38 Section 9.10. Covenant to Make Only Economically Sound Improvements..............................38 Section 9.11. Covenant to Pay Bond Principal and Interest Punctually......................................38 Section 9.12. Covenant to Pay Taxes, Assessments and Other Claims.......................................38 Section 9.13. Covenant to Retain Competent Management........................................................39 Section 9.14. Further Assurances................................................................................................39 Section9.15. Tax Exemption......................................................................................................39 ARTICLE X SUPPLEMENTAL AND AMENDATORY ORDINANCES Section 10.1. Amendments Without Consent of Bondowners....................................................40 Section 10.2. Amendments With Consent of Bondowners.........................................................41 ARTICLE XI DEFAULTS AND REMEDIES Section 11.1. Events of Default...................................................................................................41 Section 11.2. Waivers of Default.................................................................................................42 Section 11.3. Bondowners' Trustee.............................................................................................43 Section 11.4. Suits at Law or in Equity.......................................................................................43 Section 11.5. Books of City Open to Inspection..........................................................................43 Section 11.6. Payment of Funds to Bondowners' Trustee...........................................................44 Section 11.7. Application of Funds by Bondowners' Trustee.....................................................44 Section 11.8. Relinquishment of Funds Upon Remedy of Default.............................................44 Section 11.9. Suits by Individual Bondowners............................................................................45 Section 11.10. Remedies Granted in Ordinance not Exclusive.....................................................45 ARTICLE XII AMENDMENTS AND BONDOWNERS MEETINGS Section 12.1. Call of Bondowners Meetings...............................................................................45 Section 12.2. Notice to Bondowners...........................................................................................46 Section 12.3. Proxies; Proof of Ownership of Bonds..................................................................46 Section 12.4. Execution of Instruments by Bondowners.............................................................46 Section 12.5. Appointment of Officers at Bondowners Meetings...............................................47 Section 12.6. Quorum at Bondowners Meetings.........................................................................47 Section 12.7. Vote Required to Amend Ordinance.....................................................................47 Section 12.8. Obtaining Approval of Amendments at Bondowners Meeting .............................48 Section 12.9. Alternate Method of Obtaining Approval of Amendments...................................48 Section 12.10. Amendment of Ordinance In Any Respect by Approval of All Bondowners .......49 Section 12.11. Bonds Owned by City............................................................................................49 Section 12.12. Endorsement of Amendment on Bonds.................................................................49 ARTICLE XIII MISCELLANEOUS, DEFEASANCE; SALE OF BONDS AND APPROVAL OF OFFICIAL STATEMENT Section 13.1. Ordinance and Laws a Contract With Bondowners...............................................50 Section13.2. Defeasance.............................................................................................................50 -11- RV0391 DOW0391 2A5 Section 13.3. Sale of 2010 Bonds................................................................................................50 Section 13.4. Official Statement..................................................................................................50 Section 13.5. Undertaking to Provide Ongoing Disclosure.........................................................51 Section 13.6. Municipal Bond Insurance.....................................................................................53 Section 13.7. Benefits of Ordinance Limited to City, Bondowners, Insurer, and Bond Registrar................................................................................................................. 53 Section 13.8. Term "City" Includes Successor............................................................................53 Section13.9. Severability............................................................................................................54 Section 13.10. General Authorization...........................................................................................54 Section 13.11. Adjustment of Dollar Amounts.............................................................................54 Section13.12. Prior Acts...............................................................................................................54 Section 13.13. Effective Date of Ordinance.................................................................................. 54 -iii- RU0391 _DOIU0391 2M ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance of electric revenue bonds of the City in the principal amount of $PAMT to finance the cost of improvements to the City's Electric System; establishing the date, form, terms, maturities and covenants 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, 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 $PAMT (the "2010 Bonds") be issued to finance costs of the Projects; and WHEREAS, there are currently outstanding $1,865,000 principal amount of the City's Electric Revenue Bonds, Series 2001 (the "2001 Bonds"), and $2,635,000 principal amount of the City's Electric Revenue and Refunding Bonds, Series 2005 (the "2005 Bonds"); and WHEREAS, the ordinances authorizing the 2001 Bonds and the 2005 Bonds permit the City to issue additional electric revenue bonds on a parity with the 2001 Bonds and 2005 Bonds if certain conditions are met; and WHEREAS, after due consideration it appears to the City Council of the City (the "Council") that those parity conditions can be met and that the City may issue the 2010 Bonds on a parity with the 2001 Bonds and 2005 Bonds; and WHEREAS, the City has received the offer of Seattle -Northwest Securities Corporation to purchase the 2010 Bonds, and it is in the best interests of the City and ratepayers of the Electric System that the City accept that offer and sell the 2010 Bonds to the Underwriter on the terms set forth in its offer 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 have the following meanings: "Additional Bonds" means any Bonds issued on a parity with the 2001 Bonds, the 2005 Bonds and the 2010 Bonds pursuant to Article IV of this ordinance. "Adjusted Net Revenues" means Net Revenues as calculated pursuant to Section 4.2.1-1. "Annual Debt Service" for any Fiscal Year means 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 Fund 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 calculated as provided in Section 4.2(K) hereof. From and after the date when no 2001 Bonds or 2005 Bonds remain outstanding, "Annual Debt Service" for any Fiscal Year shall be calculated net of the amount of any Debt Service Offsets received in such Fiscal Year. "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. From and after the date when no 2001 Bonds or 2005 Bonds remain outstanding, "Average Annual Debt Service" for any Fiscal Year shall exclude any Debt Service Offsets. "Bond Account" means the Electric System Revenue Bond Fund established pursuant to Section 7.2 of Ordinance No. 2709 to secure payment of all Bonds (formerly referred to as the "Bond Fund"). "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 and referred to herein as the "Bond Account." ["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 2010 Bonds as provided therein.] "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of registration of the 2010 Bonds. -2- P:120391 D0T120391 2A5 07/20/10 "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 2010 Bonds, maintenance of the Bond Register, effecting transfer of ownership of the 2010 Bonds, and paying the principal of, premium, if any, and interest on the 2010 Bonds. A Supplemental Ordinance may appoint a different person, firm or entity to serve as Bond Registrar. "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. "Bonds" means the 2001 Bonds, the 2005 Bonds, the 2010 Bonds and any Additional Bonds. "Bonds" may include bonds, notes, warrants, certificates of indebtedness or any other evidence of indebtedness. "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 federal Internal Revenue Code of 1986, as amended, and applicable regulations. "Commission" means the United States Securities and Exchange Commission. "Contingency and Replacement Account" means the account of that name established in the Electric Fund (formerly designated as the Light Fund) for the purposes described in Section 6. LC of this ordinance. "Contract Resource Obligation" means an obligation of the Electric System to pay the following costs, whether or not Power and Services are available to the Electric System in return for such payment: (a) costs associated with generation, transmission or distribution facilities (including any common undivided interest therein) hereafter acquired, purchased or constructed by the City and declared by the Council to be a separate utility system, which such costs shall include but are not limited to costs of normal operation and maintenance, renewals and replacements, additions and betterments and debt service on the bonds or other obligations of such separate electric utility system, or (b) costs associated with the purchase of Power and Services under a contract. "Construction Account" means the account of that name established in the Electric Fund (formerly designated as the Light Fund) for the purpose of providing funds to pay for improvements to the Electric System. "Council" means the Port Angeles City Council, as the general legislative body of the City, as the same is duly and regularly constituted from time to time. -3- PA20391_DOTT20391 2M 0720/10 "Debt Service Offset" means receipts of the City that are not included in Revenues and that are legally available to pay debt service on Bonds, including without limitation federal interest subsidy payments, designated as such by the City. "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 2010 Bonds, or any successor or substitute depository for the 2010 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 purchase, construct, condemn or otherwise acquire such separate utility system (except as a Contract Resource Obligation (i) included in Operating Expenses of the Electric System upon compliance with Section 6.1(D) hereof from such time as no 2001 Bonds or 2005 Bonds remain outstanding, or (ii) on a basis junior and inferior to the lien on Revenues pledged to secure the Bonds). "Electric Fund" means the special fund created in the office of the Finance Director pursuant to Ordinance No. 374 and previously designated as the "Light Fund" and renamed as the "Electric Fund" and continued pursuant to Section 6.1 of this ordinance. "Finance Director" means the duly appointed and acting Finance Director of the City or the successor to the duties of that office. "Fiscal Year" means the fiscal year used by the City at any time. At the time of the passage 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; provided, however, Generating Facilities shall not include Contract Resource Obligations designated as separate systems pursuant to Section 6.1(D) hereof. "Government Obligations" means those obligations now or hereafter defined as such in Chapter 39.53 RCW, as this chapter may be hereafter amended or restated. -4- PA20391 D0T20391_2A5 07/20/10 ["Insurer" means 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. "Light Fund" means the special fund of that name created in the office of the Finance Director pursuant to Ordinance No. 374 and renamed as the "Electric Fund" and continued pursuant to Section 6.1 of this ordinance. "Moody's" means Moody's Investors Service, a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, or its successor. "MSRB" means the Municipal Securities Rulemaking Board or any successor to its functions. "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. "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 Electric 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. From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, "Operating Expenses" shall include Contract Resource Obligations to the extent designated as such pursuant to Section 6.1(D) hereof. 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. 3100, 3186, this ordinance, and any Supplemental Ordinance. "Paying Agent" or "Paying Agents" means the Bond Registrar, with respect to the 2010 Bonds, and the paying agent for each other series of outstanding Bonds. -5- P:Q0391 D0T120391 2A5 07/20/10 "Permitted Investments" means the following, so long as any of the 2001 Bonds or 2005 Bonds remain outstanding, 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 Government -Sponsored Agencies that are not backed by the full faith and credit of the U.S. Government: • 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 -6- P:Q0391_D0T120391 2A5 07/20/10 • 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 for the 2005 Bonds so long as the 2005 Bonds remain outstanding. (3) U.S. dollar denominated deposit accounts, federal funds and bankers' acceptances with domestic commercial banks which have a rating on their short term certificates of deposit on the date of purchase of "P-1" by Moody's and "A-1" or "A-1+" 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 -l" by Moody's and "A -W' by S&P and which matures not more than 270 days after the date of purchase; (5) Investments in a money market fund rated "AAAm" or "AAAm-G" or better by S&P; (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:120391_O0T120391 2A5 07/20/10 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 of the 2005 Bonds (so long as the 2005 Bonds remain outstanding) and the insurer of the 2001 Bonds (so long as the 2001 Bonds remain outstanding) and supported by appropriate opinions of counsel; and (9) Other forms of investments (including repurchase agreements) approved in writing by the insurer of the 2005 Bonds (so long as the 2005 Bonds remain outstanding) and the insurer of the 2001 Bonds (so long as the 2001 Bonds remain outstanding). 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, Bank of America, Merrill Lynch, Citigroup, and Barclay Capital Markets; (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 insurers of the 2001 Bonds and 2005 Bonds, so long as the 2001 Bonds and the 2005 Bonds, respectively, remain outstanding; (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 of the 2005 Bonds (so long as the 2005 Bonds remain outstanding) and the insurer of the 2001 Bonds (so long as the 2001 Bonds remain outstanding). From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, "Permitted Investments" shall mean any legal investment for City funds. "Power and Services" means energy, capacity, reserves and services, excluding the purchase of ownership of generating capability. "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. -8- P120391_00T20391_2A5 07/20/10 "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 or S&P or both Moody's and S&P 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 or S&P or their comparably recognized business successors or both Moody's and S& P if such institution is rated by both or their comparably recognized business successors. "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. For so long as the 2010 Bonds are held in book -entry only form, DTC will 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. "S&P" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business, a New York corporation, or its successor. "Serial Bonds" means Bonds other than Term Bonds. "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. -9- P:120391 D0T120391 2A5 07/20/10 "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 2010 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. "Tax Certificate" means the certificate with respect to federal tax matters relating to the 2010 Bonds authorized to be executed by the Finance Director pursuant to the provisions of Section 9.15 of 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, including the 2010 Bonds identified as such in Section 3.3(b) of this ordinance. "Underwriter" means Seattle -Northwest Securities Corporation. "2001 Bonds" means the City's Electric Revenue Refunding Bonds, Series 2001, issued in the original principal amount of $2,560,000 under date of November 1, 2001, pursuant to Ordinance No. 3100, and currently outstanding in the principal amount of $1,865,000. "2005 Bonds" means the City's Electric Revenue and Refunding Bonds, Series 2005, issued in the original principal amount of $3,185,000 under date of February 15, 2005, pursuant to Ordinance No. 3186, and currently outstanding in the principal amount of $2,635,000. "2010 Bonds means the City's Electric Revenue Bonds, Series 2010, authorized to be issued in the principal amount $PAMT pursuant to this ordinance. Section 1.2. Interpretation. Words of the masculine gender are 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 otherwise indicates. 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 do not define or limit the provisions hereof. ARTICLE II FINDINGS 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 in the City's Capital Facilities Plan, including but not limited to construction of and improvements to metering infrastructure, street light upgrades, and pole replacements (the "Projects"). The estimated cost of the Projects is $4,877,000. In undertaking the Projects, the City will acquire and install all equipment and appurtenances necessary for their proper operation and will acquire _10- PA20391_D0TU0391 2A5 07/20/10 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 are subject to those 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. Parity Conditions. Ordinance Nos. 3100 and 3186 that authorized the issuance of the 2001 Bonds and the 2005 Bonds provide that the City may issue Additional Bonds payable from the Bond Account on a parity with the 2001 Bonds and 2005 Bonds upon compliance with certain conditions. The Council hereby finds, as required by those provisions of Ordinance Nos. 3100 and 3186, as follows: (i) There is no deficiency in the Bond Account and no Event of Default has occurred and is continuing. (ii) Prior to delivery of the 2010 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 2010 Bonds; (B) the amount of the Average Annual Debt Service in any Fiscal Year thereafter on account of the 2001 Bonds, the 2005 Bonds, and the 2010 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 Ordinance Nos. 3100 and 3186 having been complied with or assured, the lien and charge on Revenues for the payment of the principal of and interest on the 2010 Bonds will be equal to the lien and charge thereon for the payment of principal of and interest on the 2001 Bonds and 2005 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 Account for the account of the 2010 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 2001 Bonds and the 2005 Bonds. ARTICLE III AUTHORIZATION AND ISSUANCE OF BONDS Section 3.1. Authorization of 2010 Bonds. The 2010 Bonds are hereby authorized to be issued in the aggregate principal amount of $PAMT to finance costs of the Projects and pay costs of issuing the 2010 Bonds. - 11- P:120391 DO1120391 2A5 07/20/10 The 2010 Bonds will be designated as the "City of Port Angeles, Washington, Electric Revenue Bonds, Series 2010," will be dated as of the date of their initial delivery to the Underwriter, will be in the denomination of $5,000 each, or integral multiples thereof (provided that no Bond may represent more than one maturity), will be fully registered as to principal and interest, and will be numbered separately in such manner and with any additional identification as the Bond Registrar deems necessary for identification. The 2010 Bonds will bear interest from their date (calculated on the basis of a year of 360 days and twelve 30 -day months) payable on March l and September 1 of each year, beginning on March 1, 2011, at the rates per annum and mature on September 1 of the years and in the principal amounts, as follows: Year (September 1) Amount Interest Rate 2011 $ % 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Principal of and interest on the 2010 Bonds are payable solely from the Bond Account. The 2010 Bonds are not general obligations of the City or of the State of Washington or any political subdivision thereof. -12- PA20391_DO1120391 2A5 07/20/10 Section 3.2. Registration, Exchange and Payments. A. Bond Registrar/Bond Register. The City hereby adopts the system of registration and transfer for the 2010 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 Mellon 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 2010 Bonds remain outstanding, the Bond Registrar shall make all necessary provisions to permit the exchange or registration of transfer of 2010 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 MSRB, 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 2010 Bonds transferred or exchanged in accordance with the provisions of such 2010 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 2010 Bonds. B. Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of each 2010 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 2010 Bond shall be made only as described in Section 3.2.H hereof, but such 2010 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 2010 Bond to the extent of the amount or amounts so paid. C. DTC Acceptance/Letter of Representations. The 2010 Bonds shall initially be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the 2010 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 2010 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 the 2010 Bonds, any notice that is permitted or required to be given to Registered Owners under this ordinance (except such notices as are 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 2010 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. -13- P:120391 D01120391 2A5 0720110 D. Use of Depository. (i) The 2010 Bonds shall be registered initially in the name of "CEDE & Co.", as nominee of DTC, with a single 2010 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) If (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 2010 Bonds that the 2010 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 is not obligated -14- RV0391 DOi120391 2A5 07/20/10 to transfer or exchange any Bond during the period beginning at the opening of business on the 1.5`h 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 2010. Bonds, after the mailing of the notice of such redemption. F. Bond Registrar's Ownership of 2010 Bonds. The Bond Registrar may become the Registered Owner of any 2010.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 2010.Bonds. G. Registration Covenant. The City covenants that, until all 2010 Bonds have been. surrendered and cancelled, it will maintain a system for recording the ownership of each 2010 Bond that complies with the provisions of Section 119 of the Code. H. Place and Medium of Payment. Both principal of and interest on the 2010 Bonds are payable in lawful money of the United States of America. For so long as all 2010 Bonds are in fully -immobilized form, payments of principal and interest will be made in accordance with. the operational arrangements of DTC referred to in the Letter of Representations. if the 2010. Bonds are no longer in fully -immobilized form, interest on the 201.0 Bonds will 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 2010.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 2010 Bonds will be payable upon presentation and surrender of the 2010 Bonds by the Registered Owners at the principal office of the Bond Registrar. Section 3.3. Redemption of 2010 Bonds. A. Optional Redemption. The 2010 Bonds maturing in years 2011 through 2020 are not subject to redemption prior to maturity. The 2010 Bonds maturing on and after September 1, 2021 are subject to redemption prior to maturity, at the option of the City, on or after September 1, 2020, in whole or in part on any date (and if in part with 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 2010.Bonds are in book -entry form, the selection of 2010 Bonds within a maturity to be redeemed and the manner of providing notice of redemption to beneficial owners are governed by the operational arrangements of DTC, as then in effect. [B. Mandatory Redemption. The 2010 Bonds maturing on September 1 in 20 and. 20 (the "2010 Term Bonds"), shall be redeemed prior to maturity by lot (or purchased or paid at maturity), not later than September 1 in the years set forth below from amounts credited to the Bond Retirement Account in the Bond Account as sinking fund installments therefor (to the extent such amounts have not been used to redeem or purchase such 2010 Term Bonds as provided in this ordinance) and in the principal amounts as set forth below, without premium, together with the interest accrued thereon to the date fixed for redemption. -1.5- P:12.0391 ❑01126395 2A5 07129110 20 Term Bonds Year Amount 20 20 20 20 20—* * Final Maturity 20 Term Bonds Year Amount 20 20� 20 20 20 * Final Maturity The foregoing amounts shall be deemed. Sinking Fund Requirements for the 2010.Term Bonds. The City may purchase and redeem 2010.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 2010 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 2010 Terra 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 2010 Bond is redeemed, upon surrender of such 2010 Bond at the principal office of the Bond Registrar, there will be issued to the Registered Owner, without charge, for the then unredeemed balance of the principal amount, a new 2010 Bond or 2010 Bonds, at the option of the Registered. Owner, of like maturity and interest rate in any authorized denomination. Section 3.5. Notice of Redernption. A. Official Notice. Written notice of any redemption of 2010.Bonds (which may be conditional) will be given by the Bond Registrar on behalf of the City by first class mail, postage prepaid, not less than 20 days nor more than 60 days before the redemption date to the Registered. Owners of 2010 Bonds that are to be redeemed at their last addresses shown on the Bond Register. So long as the 2010 Bonds are in book -entry form, notice of redemption (which may be conditional) shall be given as provided in the Letter of Representations. The Band Registrar -16- P:Q0399 ❑0TI20391 2A5 07120110 shall provide additional notice of redemption (at least 20 days) to the MSRB 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) any condition to the redemption (including, but not limited to, the receipt of proceeds of refunding bonds), (4) if less than all outstanding 2010 Bonds are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the 2010.Bonds to be redeemed, (5) that on the redemption date the redemption price will become due and payable upon each 2010 Bond or portion called for redemption, and that interest shall. cease to accrue from the redemption. date, (6) that the 2010.Bonds are to be surrendered for payment at the principal office of the Bond Registrar, (7) the CUSIP numbers of all 2010 Bonds being redeemed, (8) the dated date of the 2010 Bonds, (9) the rate of interest for each 2010 Bond being redeemed, (10) the date of the notice, and (11) any other information needed to identify the 2010 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 2010, Bonds being redeemed with the proceeds of such check or other transfer. B. Effect of Notice. Unless a condition to the redemption has not been satisfied, the City will 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 2010 Bonds to be redeemed. From the redemption date interest on each 2010 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 2010 Bonds. The City also reserves the right to purchase any of the 2010 Bonds in the open market at any time at prices 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 is issued under the provisions of this Article, the City must 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 bonds to be deposited to the credit of the construction or project fund created with respect to such -17- P:)2a391 -DODT%20391_ZA5 07120110 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 6.2.0 hereof, The bonds of each series issued under the provisions of this Section will 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. Account on a parity with the outstanding Bonds and secured by an equal charge and lien on the Revenues pledged to the Bond. Account 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. Account, 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 percentage 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 1,25%; 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. -1s- KV0391 ❑01120391 2A5 07120110 (iii) as to the applicable Fiscal Year under (ii) above, the percentage 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 15% 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 may 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, are sufficient to pay (i) the principal of and the redemption premium, if any, on the Bonds to be refunded and (ii) the interest that will become due and payable on or prior to the date of their payment or redemption, and (iii) the expenses incident to the issuance of such Additional Bonds. If such Additional Bonds are to be issued pursuant to Section 4.21 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 will 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.H; (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 19' PA20391_DOM0391_2A5 07/20/10 (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, (1) 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, 4.2.1) 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 4.2.0 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 from 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 from 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 from 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. -20- RU0391 DO1120391_2M 07/20/10 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 for the 2005 Bonds 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, so long as the 2001 Bonds and the 2005 Bonds remain outstanding, 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. From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, 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 an interest rate equal to the yield to maturity equal to the higher of (i) the average of the SIFMA Municipal Swap Index over the 60 month period immediately preceding the date of computation, or (ii) the average of the SIFMA Municipal Swap Index over the 12 month period immediately preceding the date of computation, as determined within ten days prior to the date of computation or, if such computation is being made in connection with the certificate required by this Section, then within ten days prior to the date of such certificate. ARTICLE V GENERAL TERMS AND PROVISIONS OF BONDS Section 5.1. Execution of 2010 Bonds. The 2010 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 on each of the 2010 Bonds. In case either of the officers who have signed or attested any of the 2010 Bonds cease to be such officer before such 2010 Bonds have been actually issued and delivered, such 2010 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 2010 Bonds had not ceased to be such officers. Only 2010 Bonds that bear a Certificate of Authentication in the form set forth in Section 8. 1, manually executed by the Bond Registrar, will be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication is conclusive evidence that the 2010 Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. -21- PA20391 DOT120391 2A5 07/20/10 Section 5.2. Lost or Destroyed Bonds. If any 2010 Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new 2010 Bond or 2010 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 2010 Bond or 2010 Bonds and upon his or her filing with the Bond Registrar and the City evidence satisfactory to both that such 2010 Bond or 2010 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. Electric Fund (formerly designated as the Light Fund). A. Electric Fund. 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," which fund is hereby renamed as the "Electric Fund" and continued by the City. The City covenants that it will pay or cause to be paid all Revenues into the Electric Fund as promptly as practicable after receipt thereof. The following accounts have been created in the Electric Fund: (i) the General Account, (ii) the Contingency and Replacement Account, (iii) the Construction Account, and (iv) the Rate Stabilization Account. Such accounts shall be held and used for the purposes hereinafter described. B. Flow of Funds. The Revenues of the City shall be deposited and credited to the following accounts in the Electric Fund and used only for the following purposes and in the following order of priority: (1) All Revenues paid into the Electric 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 Account 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 Account for the payment of the principal amount of Serial Bonds next coming due, and into the Bond Retirement Account in the Bond Account for the mandatory redemption of Term Bonds; (iv) to make all payments required to be made into the Reserve Account in the Bond Account created to secure the payment of the Bonds; and -22- PA20391 D0T\20391 2A5 07/20/10 (u) 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 Electric Fund and Bond Account 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 Electric 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, may be made up to and including the date 90 days after the end of the Fiscal Year for which the deposit or withdrawal will be effective. C. Contingency and Replacement. Account and Rate Stabilization Account. 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 Account 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 Account, and such money in the Rate Stabilization Account is hereby pledged as additional payments to the Bond. Account to the extent required for any such deficiencies. Nothing contained in this Section 6„1 shall be construed to require the deposit into the Electric 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. -23- P;Q0391 00/120391 2N5 07120110 [for .further discussion] D. Contract Resource Obligations. (1) The City is hereby authorized to create, acquire, construct, finance, own and operate one or more additional electric utility systems for the purpose of generating, transmitting or distributing electric power and energy. The Council may declare any such system to be a separate utility system not financed from Revenues (except as a Contract Resource Obligation (i) included i:n. Operating Expenses of the Electric System upon compliance with. Section 6.2 hereof or (ii) on a basis junior and inferior to the lien on Revenues pledged to secure the Bonds), the revenue of which separate utility system may be pledged to the payment of revenue obligations issued to purchase, construct, condemn or otherwise acquire or expand such separate utility system. The costs associated with any such separate utility system may upon declaration of the City Council constitute a Contract. Resource Obligation and, after no 2001 Bonds or 2005 Bonds remain outstanding and upon compliance with Section (D)(2) hereof, included in Operating Expenses, provided, however, no Contract Resource Obligation constituting the costs of a separate utility system for the retail distribution of electric power and. energy may be included in the Electric System's Operating Expenses. (2) Contract Resource Obligations as Operating Expenses. After such time as no 2001 Bonds or 2005 Bonds remain outstanding, a Contract Resource Obligation may be included in Operating Expenses if the following requirements are met at the time the Contract Resource Obligation is incurred: (i) No Event of Default has occurred and is continuing. (ii) There shall be on file with the City Clerk a certificate of a Professional. Utility Consultant stating that the average annual Net Revenues for the Fiscal Years in the period specified in the next sentence, as such Net Revenues are estimated by the Professional Utility Consultant in accordance with Section 4.2(G) and (H) hereof, shall be at least equal to 1.25 times Average Annual Debt Service in any future Fiscal. Year, as estimated by the Professional Utility Consultant in accordance with Section 4.2(G) and (H) hereof. The period for the determination of average annual. Net Revenues shall be the period beginning with the first Fiscal Year following the earlier of (a) the date to which interest is capitalized or (b) the date of initial operation of the facilities to be financed and ending with the fifth full Fiscal. Year after such date. (iii) There shall be on file with the City Clerk an opinion of the Professional Utility Consultant to the effect stated in subparagraph (a) below if the Contract. Resource Obligation is to be utilized to supply power and energy or to the effect stated in. subparagraph (b) below if the Contract Resource Obligation is to be utilized to supply transmission capability: (a) (i) The additional source of power and energy from such Contract Resource Obligation is sound from a power supply planning standpoint and is technically and economically feasible in accordance with prudent utility practice; and (ii) the estimated cost of such Contract Resource Obligation is reasonable. -24- P:Q0391 Q0TQ0391 2A5 07120110 (b) (i) The transmission capability to be acquired pursuant to the Contract. Resource Obligation will be necessary within a reasonable time after the estimated date of commercial operation of the transmission facilities; and (ii) the estimated cost of such. Contract. Resource Obligation is reasonable. Section 6.2. Bond Account formerly referred to as the 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" (previously referred to as the `Bond Fund" and referred to herein as the "Bond Account"). The Bond Account shall be held in trust and administered by the City and used solely to pay 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 Electric Fund into the Bond Account, 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 Account, 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 Account, for the purpose of paying the interest on Bands as the same becomes due and payable, a. Bond Interest Account (the "Interest Account"). So long as any 2001 Bands or 2005 Bonds remain outstanding, 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 Electric Fund into the Bond. Account 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 al.l. Bonds then outstanding. From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, the City shall pay from the Electric Fund. into the Bond Account to the credit of the Interest Account, on or before the date due, an amount sufficient, together with any funds then on deposit in the Interest. Account, to pay the installment of interest falling due on all Bonds then outstanding on such date. B. There has been created in the Bond Account, for the purpose of paying outstanding Serial. Bonds as they mature and for the purpose of redeeming Terra 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"). So long as any 2001 Bonds or 2005 Bonds remain outstanding, 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 -25- RQ0391 DOM0391 2A5 W2011 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 Electric Fund into the Bond Account 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. From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, the City shall pay from the Electric Fund into the Bond Account to the credit of the Principal. Account, on or before the date due, an amount sufficient, together with any funds then on deposit in the Principal Account, to pay the principal of Serial Bonds due on such date. (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"). So long as any 2001 Bonds or 2005 Bonds remain outstanding, 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 Electric Fund into the Bond Account to the credit of the Bond. Retirement. Account an amount such that, if the same amount were so set aside in the Bond Account 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.. From and after such time as no 2001. Bonds or 2005 Bonds remain outstanding, the City shall pay from the Electric Fund into the Bond Account to the credit of the Bond. Retirement. Account, on or before the date due, an amount sufficient, together with any funds then on deposit in the Bond. Retirement Account, to pay the Sinking Fund Requirement for any Term Bonds due on such date. The City shall apply all the money paid into the Bond Account for credit to the Bond Retirement Account to the redemption of Term Bonds on each 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 thereof. The City may also apply the money paid into the Bond Account for credit to the Bond Retirement Account for the purpose of retiring Term Bonds by the purchase of such. Bonds at a purchase prise (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 2010 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 2010 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. -26- RQ0391 DOTW391 2R5 07120/10 C. There has been created a "Bond Reserve Account" in the Bond Account (the "Reserve Account"). Upon the issuance of the 2010 Bonds, the City shall make a deposit from available funds of the Electric System 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. If the City issues any Additional Bonds, the Supplemental Ordinance authorizing the issuance of such Additional Bonds shall provide for approximately equal monthly payments into the Bond Account for credit to the Reserve Account from the money in the Electric 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 Account 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 required 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 Electric 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 if 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 -27- R\20391 DOT120391_2M 07/20/10 other money that may legally be available, such payments are not required to be made from the Electric Fund. The City may elect to meet the requirements of this Section 6.2.0 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 or S&P. 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. If 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 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 IV 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 6.2.0 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 6.2.0 as if the Bonds that remain outstanding had been issued on the date of such notice of expiration or termination. D. If there is a deficiency in the Interest Account, Principal Account or Bond Retirement Account in the Bond Account, 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 Electric 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 Account 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 Account 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 -28- PA20391_DOT120391 2A5 07/20/10 the Bond Account. All money remaining in the Bond Account after provision for the payment in full of the principal of, premium, if any, and interest on the Bonds shall be returned to the Electric Fund. The Bond Account 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 Account 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 Account 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), 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 Account 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 Electric 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. Except to the extent that there are deficiencies in any account in the Bond Account, all income received from the investment of money in the Bond Account and the Electric Fund shall be from time to time deposited in the Electric Fund. All money held or set aside by the City in the Electric Fund and Bond Account shall, until otherwise invested or applied as provided in this ordinance, be deposited by the City in its name, for the account of the Electric Fund (and the appropriate account therein) or the Bond Account (and the appropriate account therein), as the case may be, in such depositary or depositaries as the City at any time or from time to time appoints 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. -2 PA20391 DO1120391 2A5 07/20/10 ARTICLE VII USE OF BOND PROCEEDS; CONSTRUCTION ACCOUNT Section 7.1. 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 2010 Electric System Construction Subaccount" (the "2010 Construction Subaccount"). Proceeds of the 2010 Bonds will be deposited into the 2010 Construction Subaccount and applied to pay costs of the Projects and costs of issuance of the 2010 Bonds. Money in the 2010 Construction Subaccount may be invested in Permitted Investments. Funds remaining in the 2010 Construction Subaccount after the Projects have been completed shall be deposited in the Bond Account. Section 8.1. following form: NO. INTEREST RATE: MATURITY DATE: ARTICLE VIII FORM OF 2010 BONDS Form of 2010 Bonds. The 2010 Bonds shall be in substantially the UNITED STATES OF AMERICA [Bond Insurance Legend] STATE OF WASHINGTON CITY OF PORT ANGELES ELECTRIC REVENUE BOND, SERIES 2010 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: Dollars 911 CUSIP NO: The City of Port Angeles, Washington (the "City"), a municipal corporation of the State of Washington, for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date set forth above the Principal Amount set forth 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, at the Interest Rate set forth above payable on the first days of each March and September, commencing on March 1, 2011. 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 -30- PA20391_00WO391 2A5 07/20/10 arrangements of DTC referred to in the Blanket Issuer Letter of Representations from the City to DTC. If the bonds of this issue are no longer in fully immobilized form, interest on this bond will be paid by check or draft mailed to the Registered Owner at the address appearing on the Bond Register on the 15th day of the month preceding the interest payment date, and principal of this bond will be payable upon presentation and surrender of this bond by the Registered Owner at the principal office of the fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York (collectively the "Bond Registrar"). This bond is one of a series of bonds in the aggregate principal amount of $PAMT (the "2010 Bonds") issued pursuant to Ordinance No. passed by the City Council on August_, 2010 (the "Bond Ordinance"), to finance the cost of improvements to the City's Electric System. Unless otherwise defined on this bond, capitalized terms used herein have the meanings given them in the Bond Ordinance. The principal of and interest on the 2010 Bonds are payable solely out of the special fund of the City known as the "Electric System Revenue Bond Account" (the "Bond Account") established by Ordinance No. 2709 of the City. The 2010 Bonds are special limited obligations of the City and are not obligations of the State of Washington or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State of Washington is pledged to the payment of the 2010 Bonds. Under the Bond Ordinance, the City is obligated to set aside and pay into the Bond Account out of Revenues of the Electric System certain fixed amounts sufficient to pay when due the principal of and interest and premium, if any, on the 2010 Bonds and all other Bonds, as fully provided in the Bond Ordinance. To the extent provided by the Bond Ordinance, the amounts pledged to be paid from Revenues into the Bond Account and accounts therein are a lien and charge thereon equal in rank to the lien and charge upon Revenues of the amounts required to pay and secure the payment of certain outstanding Bonds and any Additional Bonds that the City may issue hereafter, and superior to all other liens and charges of any kind or nature, except the Operating Expenses of the System. The Bond Ordinance sets forth covenants of the City to secure payment of Bonds, including but not limited to covenants relating to rates and charges of the Electric System, operations of the System, and the issuance of Additional Bonds. The 2010 Bonds are subject to redemption prior to maturity as provided in the Bond Ordinance. The 2010 Bonds may be transferred and exchanged upon surrender to the Bond Registrar as provided in the Bond Ordinance. The 2010 Bonds are not "private activity bonds" as such term is defined in the Internal Revenue Code of 1986, as amended (the "Code"). The City has designated the 2010 Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. This bond will 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. -31- P120391 DOTU0391 2A5 07/20/10 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 signed by the manual or facsimile signature of its Mayor, attested by the manual or facsimile signature of the City Clerk, and the seal of the City to be impressed or reproduced hereon, all as of '2010. CITY OF PORT ANGELES, WASHINGTON By [Manual or Facsimile Signature] Mayor Attest: [Manual or Facsimile Signature] City Clerk (SEAL) CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the Electric Revenue Bonds, Series 2010, of the City of Port Angeles, Washington, dated _, 2010, as described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY, Bond Registrar am Authorized Officer -32- RN20391 DOT20391_2A5 07/20/10 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 Transferee) 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 Electric Fund, the Construction Account and the Bond Account, and the income therefrom. The Revenues and -33- RQ0391 DOM0391 2M 07/20/10 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.l .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, furnished or supplied through the facilities of the Electric System that are 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 Account, 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 that the City may now or hereafter become obligated to pay from the Revenues by law or contract. Section 9.3. Rate Covenant - Debt Service Coverap-e. 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 from the Rate Stabilization Account and deposited in the General Account, and (ii) there must be -34- P;\20391_D0T20391_2A5 07/20/10 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 will 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 City imposes the rates recommended by the Professional Utility Consultant) 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 accounting principles or otherwise, then an. event of default relating to these coverage requirements will 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 Band. Account, except as provided under Article IV 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 Electric Fund into the Bond Account, the City will not hereafter enter into any agreement obligating the City to pay, -35- P:L20391 0fl7120391 2A5 07!20110 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 purchase or lease of property which, whether or not subject to annual 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 will 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 will 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 Account) 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. The City is only required to comply with the requirements of subsections (1) and (2) above if the proceeds of such sale, lease or other disposition 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 has become unserviceable, inadequate, obsolete or unfit to be used in the operation of the Electric -36- P:%20391_DOT124391 2A5 07120110 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 Account 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 Electric 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 4.2.0 hereof. Section 9.7. Insurance. The City will 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 is not recommended by the Professional Utility Consultant, and (ii) if the City does not use the entire proceeds of such insurance to repair or reconstruct such lost or damaged property, such insurance proceeds not so used must be paid into the Electric Fund, and if in excess of $300,000 for any one loss or damage, must 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 will 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 is not 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 -37- P:120391 DOT120391 2M 07/20/10 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 Electric Fund, the Bond Account, 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 will 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 will not expend any money in the Electric 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 does not preclude the City from paying any legal or contractual obligations. Section 9.11. Covenant to Pay Bond Principal and Interest Punctually. The City will duly and punctually pay or cause to be paid, but only from the Bond Account, 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 authorizing Additional Bonds. Section 9.12. Covenant to Pay Taxes Assessments and Other Claims. The City will from time to time duly pay and discharge, or cause to be paid and discharged, when the same 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 that, if not paid, might become a lien or charge upon the Electric System, or any part thereof, or upon the Revenues, or that might in any way impair the security of the Bonds, except taxes, assessments, charges or claims that the City contests in good faith by proper legal proceedings. -38- PA20391_D01120391 2A5 07/20/10 Section 9.13. Covenant to Retain Competent Management. The City will 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 must 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 rights, 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 Exemption. A. General. The City intends for interest on the 2010 Bonds to be excludable from gross income for federal income tax purposes under sections 103 and 141 through 150 of the Code, and the applicable regulations. The City covenants not to take any action, or knowingly omit to take any action within its control, that if taken or omitted would cause the interest on the 2010 Bonds to be includable in gross income, as defined in section 61 of the Code, for federal income tax purposes. B. Tax Certificate. Upon the issuance of the 2010 Bonds, the Finance Director is authorized to execute a federal tax certificate (the "Tax Certificate") that will certify to various facts and representations concerning the 2010 Bonds, based on the facts and estimates known or reasonably expected on the date of issuance of the 2010 Bonds, and make certain covenants with respect to the 2010 Bonds, including but not limited to the following: (i) No Private Activity Bonds. The proceeds of the 2010 Bonds will not be used in a manner that would cause the 2010 Bonds to be "private activity bonds" within the meaning of the Code, as further described in the Tax Certificate. Moreover, the City covenants that it will use the proceeds of the 2010 Bonds (including interest or other investment income derived from 2010 Bond proceeds), regulate the use of property financed, directly or indirectly, with such proceeds, and take such other and further action as may be required so that the 2010 Bonds will not be "private activity bonds." (ii) No Federal Guarantee. The City has not and will not take any action, and has not knowingly omitted and will not knowingly omit to take any action within its control, that, if taken or omitted would cause the 2010 Bonds to be "federally guaranteed" within the meaning of the Code, as further described in the Tax Certificate. (iii) No Arbitrage Bonds. The City reasonably expects that the proceeds of the 2010 Bonds will not be used in a manner that would cause the 2010 Bonds to be "arbitrage bonds" within the meaning of the Code, as further described in the Tax Certificate. -39- PA20391 DOT120391 2A5 07/20110 (iv) No Hedge Bonds. The City reasonably expects that at least 85% percent of the proceeds of the 2010 Bonds will be spent within three years of the date the 2010 Bonds are issued to carry out the governmental purposes of the 2010 Bonds. The City covenants that it will comply with the Tax Certificate unless it receives advice from nationally recognized bond counsel or the Internal Revenue Service that certain provisions have been amended or no longer apply to the 2010 Bonds. (c) Arbitrage Rebate. If the City does not qualify for an exception to the requirements of Section 148(f) of the Code relating to the payment of arbitrage rebate to the United States, the City will take all necessary steps to comply with the requirement that certain amounts earned by the City on the investment of the "gross proceeds" of the 2010 Bonds (within the meaning of the Code) be rebated. (d) Special Designation. The City hereby designates the 2010 Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. The City does not expect to issue more than $30,000,000 in qualified tax-exempt obligations during the year 2010. 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, so long as 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; -40- P:\20391_D0T\20391_2A5 07/20/10 (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 will not be effective until after the Bonds outstanding as of the date of adoption of such ordinance cease to be outstanding, and any Bonds issued under such ordinance must 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 from time to time by a Supplemental Ordinance, with the consent of Bondowners 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, 7 World. Trade Center, 250 Greenwich 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_ 3100 and 3186, 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. 3100 and 3186, 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, 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 defaults in the performance of any obligations with respect to payments into the Electric Fund; (2) If default is made in the due and punctual payment of the principal of and premium, if any, on any of the Bonds when the same become due and payable, either at maturity or by proceedings for redemption or otherwise; (3) If default is made in the due and punctual payment of any installment of interest on any Bond; 41- P:%20391D0T120391 2A5 07120110 (4) If the City fails, 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; I (5) If the City defaults in the observance and performance of any other of the j covenants, conditions and agreements on the part of the City contained in the Ordinance and such default or defaults continues for a period of 60 days after the City receives 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 (except as herein permitted) sells, transfers, assigns or conveys any properties constituting the Electric System or interests therein, or any part or parts thereof, or makes any agreement for such sale or transfer (except as expressly authorized by Section 9.6 hereof); (7) If an order, judgment or decree is 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 is not vacated or set aside or stayed (or, in case custody or control is assumed by said order, such custody or control is not otherwise terminated) within 60 days from the date of the entry of such order, judgment or decree; or (8) If the City: (a) admits in writing its inability to pay its debts generally as they become due; (b) files a petition in bankruptcy or seeking a composition of indebtedness under any state or federal bankruptcy or insolvency law; (c) makes an assignment for the benefit of its creditors; (d) consents to the appointment of a receiver of the whole or any substantial part of the Electric Systema.; or (e) consents 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 waivershall extend to any subsequent or other default or impair any right consequent thereon. -42- P�20391 00T%20391 2A5 01f2a190 Section 1.1.3. Bondowners' Trustee. So long as an Event of Default has not 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 attorneys -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 must 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 must 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 rights 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 rights 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 enforced 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 herein 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 occurs and is not remedied, the books of record and account of the City will at all gimes be subject to the inspection and use of the Bondowners' Trustee. -43- 8120391 001120391 2A5 07120!10 The City covenants that if an Event of .Default happens and is not remedied, the City will. continue to account, as trustee of an express trust, for al:l. Revenues and other money, securities and funds pledged under the Ordinance. i Section 1.1,5, Payment of Funds to Bondowners' Trustee. The City covenants that if an. Event of Default happens and is not remedied, the City, upon demand of the Bondowners' Trustee, shall pay over to the Bondowners' Trustee (i) forthwith, all money, securities and funds then held by the City and pledged under the Ordinance, and {ii} as promptly as practicable after receipt thereof, al:l. 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 Section 11.6 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 this ordinance. If at any time the funds held by the Bondowners' Trustee and the Paying Agents for the Bonds are 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 that have previously 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 is not 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 is not sufficient to pay in full all the Bands 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 1.1.8. Relinquishment of Funds Upon Remedy of Default. If and whenever all. overdue installments of interest on all Bands, 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 al.l. Bonds then payable (witb. interest upon such principal and premium, if any, and, to the extent that payment of such interest -44- P 120391 oon2©asi_zA5 07120M 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 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 has happened and is continuing, and unless no Bondowners' Trustee has been appointed as herein provided, but any remedy herein authorized to be exercised by the Bondowners' Trustee may be exercised individually by any Bondowner, in his own name and on his own behalf or for the benefit of all Bondowners, if no Bondowners' Trustee has been appointed, or with the consent of the Bondowners' Trustee if a 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 XII 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 a location in the City of New York, New York, or in the City of Seattle, Washington, to be specified in the notice calling such meeting. Written notice of the meeting, stating the location 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 -45- RQ0391 001120391 2A5 07/20/10 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 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 Buffer, in a daily newspaper printed in the English language and customarily published on each business day of general circulation 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 circulation 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 will not be entitled to vote thereat, except as such officers or nominees are Bondowners or proxies for Bondowners. Any Registered Owner of Bonds is 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 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 sworn 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. -46- RQ0391 DOT\20391_2A5 0720110 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 that it may deem 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 Meetings. 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 if 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 12.5. Quorum at Bondowners Meetings. The owners of not Iess than the principal amount of the Bands 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 adjourned 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 percentage of Bondowners 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 of Bondowners duly convened and held, or with written consent as hereinafter provided in Section 1.2.9, of the owners of not less than 66 213% in principal amount of the Bonds outstanding when such meeting is held or such consent is given; provided, however, that no such amendment may (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. Bond affected thereby. -47- P:Q0391 1707120391 2A5 07120/10 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 is approved by an 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 an ordinance approving the 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 hereof: 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 will be deemed conclusively to be binding upon the City, the Paying Agents, and the owners of al:l. 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 are 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 shall be deemed or construed. to authorize or permit, by reason of any call of a meeting of Bondowners 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. Alternate 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 hereof. Such ordinance shall not be effective unless and until. filed with the City are the written consents of the percentages of owners of outstanding Bonds specified in Section 12.7 hereof and a notice is 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 hereof. A -48- Ri20391 DOTM391 2A5 07120/10 certificate or certificates of the City Clerk that he has examined such proof and that such proof is sufficient will be conclusive that the consents have 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 thereof). 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 must be published 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 rights 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 is 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 will 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 after 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 applicable Paying Agent, suitable notation shall be made on such Bond by the Paying Agent as to any such action. If the City so determines, new Bonds so modified as in the opinion of the City and its counsel to conform to such action will 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. -49- R%20391_DOM0391_2A5 07/20/10 ARTICLE XIII 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 purchase and acceptance of the Bonds by those who hold them 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 enforceable 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, priority or distinction of any of said Bonds over any others thereof except as expressly provided herein. Section 13.2. Defeasance. If money and/or Government Obligations maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire the 2010 Bonds or any of them in accordance with their terms are set aside in a special account 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 Account for the payment of the principal of and interest on the 2010 Bonds so provided for, and the owners of those 2010 Bonds will cease to be entitled to any lien, benefit or security of this ordinance except for the right to receive the money so set aside and pledged, and those 2010 Bonds will be deemed not to be outstanding hereunder. Within 30 days of any defeasance of 2010 Bonds, the City will provide notice of defeasance to the [Insurer] and the Registered Owners and to the MSRB in accordance with Section 13.5 hereof. The City will 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 2010 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 2010 Bonds to be refunded. Section 13.3. Sale of 2010 Bonds. The City hereby approves the offer of Seattle - Northwest Securities Corporation (the "Underwriter") to purchase the 2010 Bonds on the terms and conditions set forth in its purchase contract received on the date of this ordinance (the "Purchase Contract"). The Mayor or the City Manager is hereby authorized to sign the Purchase Contract on behalf of the City and deliver it to the Underwriter. The proper City officials are hereby authorized and directed to do everything necessary for the prompt execution and delivery of the 2010 Bonds to the Underwriter, in accordance with this ordinance and the Purchase Contract, and to apply the 2010 Bond proceeds in accordance with this ordinance. Section 13.4. Official Statement. The Council approves the Preliminary Official Statement for the 2010 Bonds dated , 2010, and ratifies the Underwriter's distribution of the Preliminary Official Statement in connection with the offering of the 2010 Bonds. To -50- PA20391 00T120391_2A5 07/20/10 permit the Underwriter to comply with the Rule, the City deems the Preliminary Official Statement final as of its date except for the omission of information dependent upon the pricing of the 2010 Bonds and the completion of a 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 2010 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 for the 2010 Bonds with such additions and changes as they may deem necessary or advisable. Section 13.5. Undertaking to Provide Ongoing Disclosure. This Section 13.5 constitutes the City's written undertaking for the benefit of the owners and Beneficial Owners of the 2010 Bonds as required by Section (b)(5) of the Rule. A. Financial Statements/Operating Data. The City agrees to provide or cause to be provided to the MSRB, in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2011 for the fiscal year ended December 31, 2010): 1. Annual financial statements, which statements may or may not be audited, showing end fund balances for the Electric 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 2010 Bonds under the headings `'Electric Fund — Statement of Revenues, Expenses and other Changes in Fund Equity" and "Electric Fund — Historical Coverage from Operations"; 2. The outstanding long-term indebtedness of the Electric System, and any system of the City that 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 tables under the heading "Historical Customers and Energy Revenues" in the Official Statement for the 2010 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 2010 Bonds; and 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 financial information and operating data described above will be provided on or before nine months after the end of the City's fiscal year. The City's fiscal year currently ends on -51- P:120391 DOT120391 2A5 07/20/10 December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's internet website or filed with the Commission. If not provided as part of the annual financial information discussed above, the City shall provide to the MSRB the City's audited annual financial statements prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) when and if available. B. Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the occurrence of any of the following events with respect to the 2010 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 2010 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 2010 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 2010 Bonds. The Reserve Account is the applicable debt service reserve. C. Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided to the MSRB, in a timely manner, notice of the City's failure to provide the annual financial information described in subsection A. above on or prior to the date set forth in subsection A. above. D. EMMA; Format for Filings mith the MSRB. Until otherwise designated by the MSRB or the Commission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("EMMA"), currently located at www.emma.msrb.org. All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. -52- PA20391_D01120391_2A5 07/20/10 B. Term ination/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 2010 Bonds. Any provision of this 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 requiring that provision is invalid, has been repealed retroactively or otherwise does not apply to the 2010 Bonds; and (2) notifies the MSRB of such opinion and the cancellation of the provision. Notwithstanding any other provision of this ordinance, the City may amend this Section 13.5 with an approving opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any amendment of this Section 13.5, the City will describe the amendment in the next annual report, and will 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 B. above, and (II) the annual report for the year in which the change is made will 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. Bond Owner's Remedies Under This Section. The right of any owner or Beneficial Owner of 2010 Bonds to enforce the provisions of this section are 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 will not be an event of default with respect to the 2010 Bonds. For purposes of this Section 13.5, `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 2010 Bonds, including persons holding 2010 Bonds through nominees or depositories. [Section 13.6. Municipal Bond Insurance.] Section 13.7. Benefits of Ordinance Limited to City, Bondowners, [Insurer ] and Bond Re istrar. 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 2010 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 2010 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. -53- PA20391 DOT20391_M 07/20/10 Section 13.9. Severability. If a court of competent jurisdiction declares that any one or more of the covenants and agreements in this ordinance to be performed by the City are contrary to law, then such covenant or covenants, agreement or agreements, will be null and void and will be deemed separable from the remaining covenants and agreements in this ordinance and will in no way affect the validity of other provisions of this ordinance or of the 2010 Bonds. Section 13.10. General Authorization. The Mayor, City Manager, 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. Adjustment of Dollar Amounts. The dollar amounts stated in Sections 9.6.13 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 will become effective five days 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 of the Council held on August 3, 2010. Attest: City Clerk CITY OF PORT ANGELES, WASHINGTON Mayor -54- PA20391_D0T120391_2A5 07/20/10 CERTIFICATE I, the undersigned, City Clerk of the City of Port Angeles, Washington, DO HEREBY CERTIFY: 1. That the attached is a true and correct copy of Ordinance No. (the "Ordinance") of the City, duly passed at a regular meeting of the City Council (the "Council") of the City held on August 3, 2010. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of August, 2010. City Clerk PA20391 DOM0391 2A5 7/20/2010 r PRELIMINARY OFFIC ills S T A T'F_ti1% N"T" DATED 201.0 City of Port Angeles, Washington Electric Revenue Bonds, Series 2010 DATED. ]late of Initial Delivery DUE. September 1, as shown below RA=c-1VloonY's: Applied For. See -'RATING" herein BANW QuAnrtr-n—The 2010 Bonds have been designated as "qualified tax-exempt obligations" within the ineaning of Section 265(b)(3)(B) of the Internal Revenue Code of 1986,.as amended (the "Code"). See "TA—X MkiTERS" herein.. Boon-EN-rRi ONLY—The 2010 Bonds drill be issued as fully registered bonds in denominations of 55,0€10, or inte gal multiples thereof and will be registered in the Baine of Cede & Co., as bond owner and nominee for The Depository Trust Company ("DTC"). DTC will act as sectuities depository for the 2010 Bonds_ Purchasers will not receive certificates representing their interest in the 201.0 'Bonds purchased. PRIDNCIPAL AN -D L}­TEREST ParasEn rs—Interest on the 2010 'Bonds will be payable on March 1, 2011, and semiannually on September 1 and March I of each year thereafter to the maturity or earlier redemption of the 2010 Bonds. Principal of and interest on the 2010 Bonds vdll be payable by the fiscal agency of the State of Washinato i, ion New York, New York, currently The Bank: of New York Mellon, as registrar and paying agent (the `:Bond Registrar"), as further described herein. For so lona as the 2010 Bonds remain in a "book -entry only" transfer system, (tie Bond Registrar will make such payineuts only to DTC, which in turn is obligated to remit such payments to its participants for subsequent disbimemeut to Beneficial. Owners of the "2010 Bonds, as ftuther described herein in Appendix I7. MATtiRITY SkCHEDULE*— Due Interest. Due Interest Sept. I Amounts Rates. Yields CGSIP Sept. 1 Amounts* Rates, Yields - CUSIP- % % S ❑o °u REDEMPTION—The 2010 Bonds are subject to redemption prior to their stated maturities. See the heading "DESCRIPTION OF THE 2010 BOIT?S—Redemption" herein. Repose—the 2010.Bonds are being issued to provide funds to acquire, develop and construct certain improvements to the Electric Systein (as defined herein) included or to be included in the City's Capital Facilities Plan (the "Projects") and to pay costs of issuance of the 2010 Bonds. See the heading "SOURCES AND USES OF 2010 BOND PROCEEDS" herein, SECURITY—The, 2410 Bands are special obligations of the City, the principal ❑farad interest or, which are payable solely from and secured by a pledge of Revenues (as defined herein) of the Electric System, subject to the payment of Operating Expenses (as defined herein). The 2410 Bonds are issued on a parity of lien with the City's Electric Revenue Refunding Bonds_ Series 2001, the Electric Revenue and Refunding Bonds, Series 2005, and any additional. Bonds (as defined herein). Neither the full faith and credit nor the taxing po%,er of the City is pledged to the payment of the 20,1.0 Bonds. The 2010 Bonds are not general obligations of the City, the State of Washington, or any ether municipal corporation or political subdivision thereof. Tax EKEmpno- —Ira the opinion of K&L Gates LLP, Bond Counsel assuming compliance with certain covenaais of alae Cita-, interest on the 2010 Bonds is excludable fa orn gross income for federal income tar pur poses under e"ristirrg lain. Interesl on the 2010 Bonds is not on item ofrtax pl eferenceforptaposes of either individual or coaporate alternative mininnol; tar and is 7iol inchided in adjusted current earnings for purposes of tlae federal alternative minimum tar imposed on certain co7por'otions. See "T_4X-VL4TTE'RS" herein for a discuss ton of the opatiorl ofBord Counsel. DELIVERY ---The 2010 Bonds are offered for sale to Seattle -Northwest Securities Corporation (the "Undemritee) subject to the filial approving legal opinion of K&L Gates LLP, Seattle.. Washington, Bond Counsel. It is expected that the 2010.Bonds ATJ be available for delivery to [lie Bond Registrar ou behalf of DTC by Fast-4tfton2at'ed Securities Transfer, ort or about [August 1.71, 2010.. This cover page contahis certain information for• quick reference only. P is not aSttrnrrraly of the issue. Investors must rend the ertiire Official Stateurew to obtain information essential to the making of aro it forured investment decision. Preliminary, subject to change. NowNNES1 W Dated: 2010 No dealer, broker, salesman, or other person has been authorized to give an), information or to make any representation., other than the information and representations contained in this Official Statement, in connection with the offering of the 201.0 Bonds and,. if given or made, such information or representations must not be relied upon as 'having been authorized by the City or Seattle -Northwest Securities Corporation (the "Undenwriter"). This Official Statement does not constitute an offer to sell or solicitation of an offer to buy any of the 2010.Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation, or sale. The information set forth herein has been obtained from the City and other sources that are believed to be reliable. The Underwriter has prof6ded the following sentence for inclusion in this Oficial Statement. The Undenvriter has review -ed the information in this Oficial Statement in accordance with, and as part of its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information herein is subject to change without notice, and neither the delivery of this Official Statement nor any sale trade hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. In connection with the offering of the 2010 Bonds, the Underwriter may oyer -allot or effect transactions which stabilize or maintain the market price of such 2010 Bonds at levels above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. In the preparation of the projections in this Official Statement, the City has made certain assumptions with respect to conditions that may occur in the ,future. While the City believes these assumptions are reasonable for the purpose of the projections, they depend upon future e`ents, and actual conditions may differ from those assumed. The City does not represent or guarantee that actual results will replicate the projects in the various tables set forth in this Official Statement. Potential purchasers of the 2010 Bonds should not rely on the projections in this Official Statement as statements of fact.. Such projections are subject to change, and will change, from time to time... -The City has not;. . committed itself to protide investors with updated forecasts or projectioris. CUSIP* numbers are included on the front coyer of this Official Statement for convenience of the holders and potential holders of the 2010 Bonds. The CUSIP numbers were provided by CUSIP Global Sen ices and are not intended to create a, database and do not serve in any way as a substitute for the CUSlP Global, Services. No assurance can be given that the CUSIP numbers for the 2010 Bonds will remain the same after the date of issuance and deliver, of the 2010 Bonds. To permit the Undenyriter to comply with Rule 1.5c2-12 of the Securities and Exchange Commission, the City has deemed this preliminary Oficial Statement final as of its date, except for the omission of offering prices, interest. rates, selling compensation, principal amounts: delivery date, ratings and other terms of the 2010 Bonds depending on the foregoing matters. Copyright CUSIP Global Services. CUSIP is a registered trademark of the American Bankers Association. • Name Dan Di Guilio Don Perry Brad Collins Patrick Downie Cherie Kidd Max Mania Brooke Nelson CITY OF PORT ANGELES 321 East Fifth Street Port Angeles, Washington 98362 (360) 457-0411 'Vn►w.cihyofpa.us' Elected Officials Position Council Member and Mayor Council Member and Deputy Mayor Council Member Council Member Council Member Council Member Council Member Appointed Officials Term Expires 12/3112011 12/31/2011 12%31./2011 12;13112013 12/31/2011 12/31/2013 1.2/3112013 Kent Myers City Manager Janessa Hurd City Clerk Yvonne Ziomkowski Finance Director Glenn A. Cutler, P.E. Public Works and Utilities Director William Bloor . City Attorney Bond Registrar The Bank of New York Mellon New York, New York 1-800-438-473 Bond Counsel K&L Gates LLP Seattle, Washington Financial Advisor Piper Jaffray & Co. Seattle, Washington Neither the information on the City's website, nor any links from that website, is part of this Official Statement, and such information cannot be relied upon to be accurate as of the date of this Official Statement. nor should any such information be relied upon to make investment decisions regarding the 2010 Bonds. cm P"20391_DOT20391_2AH 05113/10 TABLE OF CONTENTS Page INTRODUCTION ..... .................................................1 DESCRIPTION OF THE 2010 BONDS ...................1 General................................................................1 Bond Registrar and Paying Agent, Payment of 2010 Bonds..................................2 Redemption.........................................................2 Option to Purchase.. ............................................ 3 Defeasance...........................................................3 SOURCES AND USES OF BOND PROCEEDS............................................................... 4 Purpose................................................................4 Sources and Uses of Funds..................................4 34 SECURITY FOR THE 2010 BONDS .......................4 Pledge of Net Revenue........................................4 Rate Covenant.....................................................5 5 Electric Fund.......................................................5 Floeof Funds.....................................................6 BondAccount......................................................8 Debt Payment Record........................................10 Additional Bonds..............................................11 36 Additional Covenants........................................13 _36 No Acceleration of the 2010 Bonds ..................14 DEBT INFORMATION...........................................15 38 Description of Outstanding Bonds....................15 Schedule of System Debt Service ......................15 Additional Bonds.. ............................................ 15 Junior Lien Debt... ........................... ................. 16 THE ELECTRIC SYSTEM.....................................16 The Electric System...........................................16 Rates and Charges.............................................16 Historical Customers and Energy Revenues.......................................................17 Largest Customers.............................................18 Electric System Employees-. .............................. IS Comparison of Monthly Electric Bills ..............19 Bonneville Power Administration ......... ............ 19 Morse Creek Project..........................................21 Capital Improvement Program ...........................21 Page Conservation and Environmental Issues ............21 Historical Operating Results .............................23 THECITY................................................................27 Principal City Officers......................................27 Administrative Staff...........................................28 Labor Relations.................................................29 Pension System .............. _................... .............. 29 Risk Management..............................................30 Financial Information........................................31 INITIATIVE AND REFERENDUM ........................33 TAXMATTERS......................................................34 Qualified Tax -Exempt Obligations .................... 34 LEGAL MATTERS.................................................35 Opinion of Counsel...........................................35 Litigation...........................................................3 5 Enforceability....................................................35 LIMITATIONS ON REMEDIES .............................35 CONFLICTS OF INTEREST..................................35 FINANCIAL ADVISOR ..........................................35 OTHER MATTERS ................................................. 36 Continuing Disclosure Undertaking.: ...... ....... _36 Underwriting......................................................38 Ratine................................................................ 38 Official Statement Certificate ............................38 APPENDIX A DEMOGRAPHIC ANID ECONOMIC INFORMATION APPENDI-X B FORM OF LEGAL OPINION APPENDI_X C THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009 APPENDIX D BOOK -ENTRY SYSTEM APPENDIX E FORM OF BOND ORDINANCE -11- PA20391 DOT120391_2AH 05'13/10 El 0 • OFFICIAL STATEMENT $ CITY OF PORT ANGELES, WASHINGTON ELECTRIC REVENUE BONDS, SERIES 2010 INTRODUCTION The City of Port Angeles, Washington (the "City"), a municipal corporation duly organized and existing under the laws of the State of Washington (the "State"), furnishes this Official Statement in connection with the offering of S * principal amount of the City's Electric Revenue Bonds, Series 2010 (the "2010 Bonds"). This Official Statement provides information about the City, the 2010 Bonds and the City's electric utility (the "Electric System"), This Official Statement is qualified in its entirety by reference to Ordinance No. of the City passed by the City Council on August 3, 2010 (the "Bond Ordinance"). The 2010 Bonds are issued under the provisions of the constitution and laws of the State, and pursuant to the Bond Ordinance, a copy of which is attached hereto in Appendix E. Capitalized terms used herein and not otherwise defined have the meanings given them in the Bond Ordinance. See APPENDIX E—"FORM OF BOND ORDINANCE." The 2010 Bonds are being issued to provide funds to acquire, develop and construct certain improvements to the Electric System included or to be included in the City's Capital Facilities Plan (the "Projects"). and to pay costs of issuing the 2010 Bonds. See `'SOURCES AND USES OF BOND PROCEEDS—Purpose" herein. • The 2010 Bonds are payable from Revenues of the Electric System, subject only to the payment of the Operating Expenses. The 2010 Bonds are issued on a parity of lien with the City's currently outstanding Electric Revenue Bonds, Series 2001 (the "2001 Bonds") and the City's Electric Revenue and Refunding Bonds, Series 2005 (the "2005 Bonds"). The City has reserved the right to issue additional bonds ("Additional Bonds") on a parity of lien with the 2001 Bonds, the 2005 Bonds and the 2010 Bonds. See "S.ECURITY FOR THE 2010 BONDS." The 2010 Bonds are special revenue obligations of the City. Neither the full faith and credit nor the taxing power of the City is pledged to the payment of the 2010 Bonds. The 2010 Bonds are not obligations of the State of Washington or any political subdivision thereof other than the City. See "SECURITY FOR THE 2010 BONDS." DESCRIPTION OF THE 2010 BONDS General The 2010 Bonds will be issued in the aggregate principal amount of S # and will be dated the date of their delivery to the Undenvriter. The 2010 Bonds will mature on the dates and in the principal amounts and will bear interest from their date, payable on March 1, 2011, and semiannually on September 1 and March 1 of each year thereafter, at the rates set forth on the cover of this Oficial Statement. Interest on the 2010 Bonds will be calculated on the basis of a year of 360 days consisting of twelve 30 -day months. The 2010 .Bonds will be issued in registered form, initially registered in the name Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"), in the denomination of $5,000 each or any integral multiple thereof within a single maturity. Individual purchases of the 2010 Bonds will be made initially in book -entry form only and purchasers will not receive certificates representing their interest in the 2010 Bonds purchased. See APPENDIX D—' -BOOK -ENTRY SYSTEM." 0 ' Preliminary, subject to change. Bond Registrar and Paying Agent, Payment of 2010 Bonds 0 The City has adopted the system of registration for the 2010 Bonds approved. from time to time, by the State Finance Committee of the State. Pursuant to chapter 43.80 of the Revised Code of Washington ('RCW "), the Committee designates one or more fiscal agencies for bonds issued within the State. The State's fiscal agent in New York City, currently The Bank of New York Mellon (the 'Bond Registrar"), will authenticate the 2010 Bonds and act as paying agent and registrar for the 2010 Bonds. No resignation or removal of the Bond Registrar will become effective until a successor has been appointed and has accepted the duties of Bond Registrar. To meet payment requirements for interest on and principal of the 2010 Bonds as the same become due and payable, the City will remit money from the Electric System Revenue Bond Fund (formerly referred to as the Bond Fund, and referred to herein as the `Bond Account") to the Bond Registrar. See "SECURITY FOR THE 2010 BONDS—Bond Account" herein. The Bond Registrar will in turn remit such principal and interest to DTC participants for subsequent disbursement to the Beneficial Owners of the 2010 Bonds as described in APPENDIX D—"BOOK- ENTRY SYSTEM." If the City is unable to retain a qualified successor to DTC, or the City determines that it is in its best interest not to continue the book -entry system of transfer or that interests of the Beneficial Owners of the 2010 Bonds might be adversely affected if the book -entry system of transfer is continued, the City will execute, authenticate and deliver at no cost to the Beneficial Owners of the 2010 Bonds or their nominees, 2010 Bonds in fully registered form, in the denomination of 55,000 or any integral multiple thereof within a maturity. Thereafter, interest on the 2010 Bonds will be payable by check or draft (or by wire transfer if requested in writing by the Registered Owner of at least $1,000,000 principal amount of 2010 Bonds) mailed to the persons in whose names such 2010 Bonds are registered, at the address appearing upon the registration books on the 156 day of the month preceding an interest payment date. The 2010 Bonds are transferable as provided in the Bond Ordinance. See "APPENDIX E—"FORM OF BOND ORDINANCE." Redemption o is Optional Redemption. The 2010 Bonds maturing in years 2011 through 20 are not subject to redemption prior to maturity. The 2010 Bonds maturing on and after September 1, 20 are subject to redemption prior to maturity, at the option of the City, on or after September l; 20—, in whole or in part on any date (and if in part with 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 2010 Bonds are in book -entry form, the selection of 2010 Bonds within a maturity to be redeemed and the manner of providing notice of redemption to beneficial owners are governed by the operational arrangements of DTC, as then in effect. �landatori, Redemption. The 2010 Bonds maturing on September 1 in 20— (the "2010 Term Bonds"), shall be redeemed prior to maturity by lot (or purchased or paid at maturity), not later than September 1 in the years set forth below from amounts credited to the Bond Retirement Account in the Bond Account as sinking fund installments therefor (to the extent such amounts have not been used to redeem or purchase such Term Bonds as provided in the Bond Ordinance) and in the principal amounts as set forth below, without premium, together with the interest accrued thereon to the date fixed for redemption: 2010 Term Bonds Redemption Date (September l) * Maturity. Principal Amount -2- P:�M391_DOT 391_2AH 05!13110 • • The foregoing amounts are deemed "Sinking Fund Requirements" for the 2010 Term Bonds. The City may purchase and redeem 3010 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 2010 Term Bonds will be applied to the redemption of such bonds on such September 1. If, as of any September 1, the principal amount of 2010 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. Partial Redemption. If less than all of the principal amount of any 2010 Bond is redeemed, upon surrender of such 2010 Bond at the principal office of the Bond Registrar, there will be issued to the Registered Owner, without charge, for the then unredeemed balance of the principal amount, a new 2010 Bond or 2010 Bonds, at the option of the Registered Owner, of like maturity and interest rate in any authorized denomination. ?votice of Redemption. For as long as the 2010 Bonds are held in book -entry -only form, the Bond Registrar will provide notice (which may be conditional) to DTC only, and it will be the responsibility of DTC to disseminate notices to DTC participants. The City will not provide any notice of redemption to Beneficial Owners of 2010 Bonds. See APPENDIA D—"BOOK-ENTRY SYSTEM." Redemption may be conditioned on the occurrence of certain events, as described in the notice of such redemption. See APPENDIX A—"FORM OF BOND ORDINANCE." If the 2010 Bonds are no longer held in book -entry -only form, notice of redemption (which may be conditional) will be given not fewer than 20 days nor more than 60 days prior to the redemption date by first-class mail, postage prepaid, to the registered owner of any 2010 Bond to be redeemed at the address appearing on the bond registration books maintained by the Bond Registrar. Interest on the 2010 Bonds called for redemption shall cease to accrue on the date fixed for'redemption unless the 2010 Bond or 2010 Bonds called are not redeemed when presented pursuant - to the call. • 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 2010 Bonds being redeemed with the proceeds of such check or other transfer. Unless a condition to the redemption has not been satisfied, the City will 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 2010 Bonds to be redeemed. From the redemption date interest on each 2010 Bond to be redeemed shall cease to accrue. Option to Purchase The City has reserved the right to purchase any of the 2010 Bonds in the open market at any time at prices deemed reasonable by the City-. Defeasance The City has reserved the right to defease the 2010 Bonds or any portion of them by providing for their payment. If money and/or "Government Obligations," as such term is defined in chapter 39.53 RCW, maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire the 2010 Bonds or any of them in accordance with their terns are set aside in a special account 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 Account for the payment of the principal of and interest on the 2010 Bonds so provided for, and the o -,toners of those 2010 Bonds will cease to be entitled to any lien, benefit or security of the Bond Ordinance except for the right to receive the money so set aside and pledged, and those 2010 Bonds will be deemed not to be outstanding thereunder. Within 30 days of any defeasance of 2010 Bonds, the City will provide notice of any such defeasance. • See "OTHER MATTERS—Continuing Disclosure Undertaking." The City will obtain an opinion of nationally -3- PA20391 D01120391 2AH 0513110 recognized bond counsel to the effect set forth in the preceding sentence and that the tax-exempt status of such 2010 e 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 2010 Bonds to be refunded. As currently defined in chapter 39.53 RCW, the term `Government Obligations" means (a) direct obligations of or obligations; the principal of and interest on which are unconditionally guaranteed by the United States of America and bank certificates of deposit secured by such obligations; (b) bonds, debentures, notes, participation certificates or other obligations issued by the Banks for Cooperatives, the Federal Intermediate Credit Bank, the Federal Home Loan Batik System the Export -Import Bank of the United States, federal land banks or the Federal National Mortgage Association; (c) public housing bonds and project notes fully secured by contracts with the United States; and (d) obligations of financial institutions insured by the Federal Deposit Insurance Corporation to the extent insured or guaranteed as permitted under any other provision of State law. SOURCES AND USES OF BOND PROCEEDS Purpose The proceeds of the 2010 Bonds will be used to provide funds to acquire, develop and construct certain improvements to the Electric System included or to be included in the City's Capital Facilities Plan, including construction of and improvements to metering infrastructure, street light upgrades; and pole replacements (the "Projects") and to pay costs of issuing the 2010 Bonds. See "THE ELECTRIC SYSTEM—Capital Improvement Program" for a summary of the City's Capital Facilities Plan. Sources and Uses of Funds The table below sets forth the expected sources and uses of proceeds of the 2010 Bonds and other funds in connection with the issuance of the 2010 Bonds and the financing of the Projects. Sources of Funds Principal Amount of the 2010 Bonds (1) Net Original Issue Premiumr'(Discount) City Contribution Total Sources: Uses of Funds Construction Account Costs of Issuance (2) Additional Proceeds Total Uses: (1) Preliminary, subject to change. (2) Includes fees of bond counsel, financial advisor, rating agency, printing costs, Underwriter's discount, and other costs associated with issuing the 2010 Bonds. SECURITY FOR TIIE 2010 BONDS Pledge of Net Revenue The principal of and interest on the 2010 Bonds are payable solely from and secured by a pledge of (a) all income, revenues and receipts derived by the City through the ownership and operation of the Electric System, excluding income derived from separate utility systems (the "Revenues"). subject to the payment of Operating Expenses, and investment income restricted to a particular purpose inconsistent with its use for the payment of debt service, and (b) the moneys and investments, if any, credited to the Electric Fund, the Bond Account and the Construction 0 -4- R\20391_DOT120391 2AH 05113/10 • Account, each of which have been created or confirmed in the Bond Ordinance, and investment earnings thereon. The 2010 Bonds are issued on a parity of lien with the City's currently outstanding 2001 Bonds and 2005 Bonds. The City has reserved the right to issue additional bonds ("Additional Bonds') on a parity of lien with the 2001 Bonds, the 2005 Bonds and the 2010 Bonds. See "Additional Bonds" below. Together, the 2001 Bonds, the 2005 Bonds, the 2010 Bonds, and any Additional Bonds are referred to herein as the "Bonds." The 2010 Bonds are special limited obligations of the City payable only from the Bond Account. The Bond Account will at all times be completely segregated and set apart from all other funds and accounts of the City for the security and the payment of the principal of and interest on the Bonds as they become due. The 2010 Bonds are not an obligation of the State or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State are pledged to the payment of the 2010 Bonds. Rate Covenant The City has covenanted in the Bond Ordinance to establish, maintain and collect rates and charges for electric power and energy and other services, facilities and commodities sold, furnished or supplied by it in connection with the operation of the Electric System which are fair and nondiscriminatory and adequate (a) to provide Revenues, together with other funds legally available therefor, sufficient for the payment of the principal o£ premium if any: and interest on the Bonds for which payment has not otherwise been made, for all payments into the Bond Account. and for the proper operation and maintenance of the Electric System, and all necessary repairs, replacements and renewals thereto. and (b) 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. "Annual Debt Service" for any Fiscal Year means 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 Fund Requirement Date for such Fiscal Year). 1f the interest rate on any such Bonds is other than a fired rate, the rate applicable at the time of computation shall be used. From and after the date when no 2001 Bonds or 2005 Bonds remain outstanding, "Annual Debt Service" for any Fiscal Year shall be calculated net of the amount of any Debt Service Offsets received in such Fiscal Year. "'Debt Service Offset" is defined to mean receipts of the City that are not included in Revenues and that are legally available to pay debt service on Bonds, including without limitation federal interest subsidy payments, designated as such by the City. Net Revenues are computed by deducting Operating Expenses from Revenues in each Fiscal Year, provided that there may be added to Net Revenues in any Fiscal Year an aggregate amount which is withdrawn from the Rate Stabilization Account and deposited in the General Account in the Revenue Fund in such Fiscal Year, and there will be subtracted from Net Revenues any amount withdrawn from the General Account in the Revenue Fund and deposited in the Rate Stabilization Account in such Fiscal Year. • For the purpose of meeting the tate covenant, (i) there may be added to Net Revenues for any Fiscal Year such amount, withdrawn 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 cut -rent Fiscal Year in an amount that will be equal to the Annual Debt Service on the then outstanding Bonds in such Fiscal Year. Electric Fund The City holds and administers the Light Fund, created pursuant to Ordinance No. 374 and renamed as the "Electric Fund" by the Bond Ordinance, into which all Revenues of the Electric System received by the City are deposited. There are four accounts in the Electric Fund, each of which is further described below: General Account, Contingency and Replacement Account, Rate Stabilization Account, and Construction Account. -5- PA20391_DOT120391_2AH 05/13/10 General Account. The General Account is designed to receive and disburse Revenues of the Electric Fund. O Contingence and Replacement Account. Money in the Contingency and Replacement Account is to be used to make up any deficiencies in the Reserve Account. 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 2010 Bonds, or used by the City for any other lawful purpose of the City, but may not be paid directly into the Rate Stabilization Account. As of July 1, 2010, there was 592,980 in the Contingency and Replacement Account. Rate Stabilization Account. The Rate Stabilization Account has been 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 Account; and such money in the Rate Stabilization Account has been pledged in the Bond Ordinance as additional payments to the Bond Account to the extent required for any such deficiencies. As of July 1, 2010, there was approximately S900,000 in the Rate Stabilization Account. Construction Account. Money in the Construction Account will be used to pay costs of financing the Projects. Flow of Funds The Revenues of the Electric System will be deposited in the Electric .Fund and credited to the following accounts and used only for the following purposes and in the following order of priority: (a)All- Revenues paid into the Electric Fund will 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 required payments into the Interest Account in the Bond Account for the payment of accrued interest on the next interest payment date; (iii) to make all required payments into the Principal Account in the Bond Account for the payment of the principal amount of Serial Bonds next coming due; and to make all required payments into the Bond Retirement Account in the Bond Account for mandatory redemption of Term Bonds; (iv) to make all required payments into the Reserve Account in the Bond Account created to secure the payment of the Bonds; and (v) to make all required payments 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 Electric Fund and Bond Account and accounts therein junior and inferior to the lien thereon for the payment of the principal of and interest on the Bonds. (b) To the extent that surplus Revenues remain after the required payments out of the General Account, the City will credit to the Contingency and Replacement Account in the Electric Fund in each Fiscal Year an amount equal to at least 25 percent of the Annual Debt Service in such Fiscal Year. (c) To the extent that surplus Revenues remain after the required payments out of the General Account and after the credit to the Contingency and Replacement Account, the City may credit up to the full amount of such surplus to the Rate Stabilization Account. 0 -6- RQ0391_DOW0391_2AH 05!13110 (d) 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 Electric Fund. Any credits .from the General Account pursuant to subsections (b) and (c) above; and any credits to the General Account from the Rate Stabilization. Account made pursuant to the. Bond Ordinance, may be made up to and including the date 90 days after the end of the :Fiscal Year for which the deposit or withdrawal will be effective- - Nothing contained in the Bond Ordinance should be construed to require the deposit into the Electric 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. f fo f% ether discussion] Contract Resource Obligations, The City is authorized in the. Bond Ordinance to create. acquire, construct, finance, own and operate one or more additional electric, utility systems for the purpose of generating, transmitting or distributing electric power and energy, and to declare any such system to be a separate utility system not financed from. Revenues (except as a Contract. Resource Obligation (i) included in Operating Expenses of the Electric System upon compliance with the provisions below or (ii) on a basis junior and inferior to the lien on Revenues pledged to secure the Bonds), the revenue of which separate utility system may be pledged to the payment of revenue obligations issued to purchase, construct, condemn or otherwise acquire or expand such separate utility system- "Contract. Resource Obligations" are defined in the Bond Ordinance as an obligation of the Electric System to pay the following costs, whether or not Power and Services (as defined below) are available to the Electric System in return for such payment: (a) costs associated with generation, transmission or distribution facilities (including any common. undivided interest therein) acquired, purchased or constructed by the City and declared by the Council to be a. separate- utility system, which such costs- shall -include but- are .not limited- to' costs- of- normal-- operation :and maintenance, renewals and replacements, additions and betterments and debt service on the bonds or other obligations of such separate electric utility system, or (b) costs associated with the purchase of Power and. Services under a contract. `Tower and Services" is defined to mean energy, capacity, reserves and services, excluding the purchase of ownership of generating capability- The costs associated with any such separate utility system may upon declaration of the Council constitute a Contract :Resource Obligation and; after no 2001 Bonds or 2OU5 Bonds remain outstanding and upon compliance with the requirements below, included in Operating :Expenses, provided. however, no Contract. Resource Obligation constituting the costs of a separate utility system for the retail distribution of electric power and energy may be included in Operating Expenses of the Electric System. Conti -act Resource Obligations as Oper•aMig Expenses. After such time as no 2001 .Bonds or 2005 Bonds remain outstanding: a Contract 'resource Obligation may be included in Operating Expenses if the following requirements are met at the time the Contract Resource Obligation is incurred - (a) No Event of Default has occurred and is continuing. (b) There shall be on file with the. City Clerk a certificate of a .Professional Utility Consultant stating that the average annual. Net Revenues for the Fiscal. Years in the period specified in the next sentence, as such. Net Revenues are estimated by the Professional Utility Consultant in accordance with the Bond Ordinance, shall be at. least equal to 1.25 times Average Annual Debt Service in any future Fiscal Year, as estimated by the Professional Utility Consultant in accordance with the Bond Ordinance- The period for the determination of average annual Net Revenues shall be the period beginning with the first. Fiscal Year following the earlier of (a) the date to which. interest is capitalized or (b) the date of initial operation of the facilities to be financed and ending with the fifth full. Fiscal Year after such, date - (c) There shall be on file with the City Clerk an opinion of the Professional Utility Consultant to the effect stated in subparagraph (1) below if the Contract Resource Obligation is to be utilized to supply power and -7- RVD391 o6T1,20391 2AH 0513116 energy or to the effect stated in subparagraph (2) below if the Contract Resource Obligation is to be utilized to supply transmission capability: (1) (i) The additional source of power and energy from such Contract Resource Obligation is sound from a power supply planning standpoint and is technically and economically feasible in accordance with prudent utility practice-, and (ii) the estimated cost of such Contract Resource Obligation is reasonable. (2) (i) The transmission capability to be acquired pursuant to the Contract Resource Obligation will be necessary within a reasonable time after the estimated date of commercial operation of the transmission facilities: and (ii) the estimated cost of such. Contract Resource Obligation is reasonable. Bond account A special fund of the Cit}-, known as the Electric System Revenue 'Bond. Fund (formerly referred to as the 'Bond Fund, and referred to herein as the `Bond Account") has been created by the City and includes four accounts: (i) the Interest Account, (ii) the Principal Account, (iii) the Bond Retirement. Account, and (iv) the Reserve Account. So long as any Bonds are outstanriing, the City will set aside and pay into the Bond Account from money in the Electric Fund, after paying or making provision for Operating: Expenses, 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. The fixed amounts to be paid into the Bond Account, to the extent that such payments are not made from Bond proceeds or from other money which may legally be available therefore, will be as follows and in the following order of priority: (a) Interest 4cconnr The Interest. Account was created for the purpose of paying the interest on the -''Bonds as.the-same.becomes7due andipayable:: So long as any 2001 Bonds or 2005 Bonds. remain outstandi:ng,.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 25`h day of each month thereafter, the City will pay from the Electric Fund into the. Bond Account to the credit of the Interest Account an amount such that, if the same amount were so paid and credited to the Interest j Account on the 25`h 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 fallinn due on all Bonds then outstanding. From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, the City shall pay from the Electric Fund into the Bond Account to the credit of the Interest Account, on or before the date due, an amount sufficient, together with any funds then on. j deposit in the Interest Account, to pay the installment of interest falling due on all Bonds then outstanding on such date. (b) To the following accounts that are equal in priority: (i) Principal Account The Principal Account was created for the purpose of paying outstanding Serial Bonds as they mature. So ion-, as any 2001 Bonds or 2005 Bonds remain outstanding, no later than the 25'' day of the month in which the Bonds are delivered to the initial purchaser(s) thereof and on or before the 251 day of each month thereafter, the City will pay from the Electric Fund into the Bond Account to the credit of the Principal Account an amount such that, if the same were so paid and credited to the Principal Account on the 25'h 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 installment of principal amount of Serial Bonds then falling due. From and after such time as no 2001 Bonds or 2005 Bonds retrain outstanding, the City shall pay from the Electric Fund into the Bond Account to the credit of the Principal Account, on or before the date due, an amount sufficient, together with any funds then on deposit in the Principal. Account, to pay the principal of Serial Bonds due on such date. (ii) Bond Retiremern Accouni. The Bond. Retirement Account was created for the purpose of redeeming. Terry Bonds. So long as the 2001 Bonds or 2005 Bonds rernain outstanding, no later than the 25" day of the month in which the Bonds are delivered to the initial purchaser(s) thereof and on or before the 2.5`k' day of each. succeeding month thereafter_ the City will pay from the Electric Fund into the Bond. Account to the credit of the -8- P:,20391O❑T17o39a 24H 05x13110 • Bond Retirement Account an amount such that, if the same were so paid and credited to the Bond Retirement Account on the 25`h day of each succeeding month thereafter and prior to such Term Bond maturity 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. From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, the City shall pay from the Electric Fund into the Bond Account to the credit of the Bond Retirement Account. on or before the date due, an amount sufficient, together with any funds then on deposit in the Bond Retirement Account, to pay the Sinking Fund Requirement for any Term Bonds due on such date. The City will apply all the money paid into the Bond Account for credit to the Bond Retirement Account to the redemption of Term Bonds on each Sinking Fund Requirement Date. The City may also apply the money paid into the Bond Account 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 will be credited against the next ensuing Sinking Fund Requirement. (c) Reserve Account. In accordance with the Bond Ordinance, when the Bonds are issued, there will be on deposit in the Reserve Account an amount equal to Average Annual Debt Service on the outstanding Bonds. "Average Annual Debt Service" means the amount determined by dividing (i) 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 (ii) 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 (A) the principal amount of Serial Bonds maturing in such Fiscal Year plus (B) 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. From and after the date when no 2001 Bonds or 2005 Bonds remain outstanding, "Average Annual -Debt -Service" forany Eiscal Year shall exclude any Debt Service Offsets. • Upon the issuance of any Additional Bonds, the City will make approximately equal monthly payments into the Bond Account for credit to the Reserve Account from money in the Electric 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 the Reserve Account will equal the Average Annual Debt Service at the date of issuance of such Additional Bonds; provided, however, that the proceedings authorizing the issuance of the Additional Bonds may provide for payments into the Bond Account for credit to the Reserve Account from the proceeds of such Additional Bonds or from any other money lawfully available therefore. The current cash balance in the Reserve Account is $172:000 and there is a surety policy from ',M Capital Assurance. See "Reserve Account Insurance Policy" below. The City will satisfy the Reserve Account requirement for the Bonds (S ) by depositing into the Reserve Account, from available funds of the Electric System, an amount that will be sufficient to satisfy the Reserve Account requirement with respect to the 2010 Bonds. See "SOURCES AND USES OF BOND PROCEEDS—Sources and Uses of Funds." • The money and value of Permitted Investments in the Reserve Account will 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, the Principal Account or the 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 will 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 13 approximately equal consecutive monthly installments into the Reserve Account. For purposes of valuation of Permitted Investments, the value will be computed as follows: (i) the value of obligations that mature within six months from the date of purchase will be the purchase price of such obligations; and (ii) the value of obligations that mature more than six months after the date of purchase will be the lesser of the principal or face amount of such obligations, or the bid quotation price as of the fifth business day next preceding the date of such determination as reported in The Nall Street Journal or other publication as provided in the Bond Ordinance. -9- P:120397 D0T120391 2AH 05'13/10 In the event there is a deficiency in the Interest Account, Principal Account or Bond Retirement Account, the City a will 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 has covenanted 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 will be made up from money in the Electric Fund available after making provision first for payment of Operating Expenses and then for the required payments into such Interest Account, Principal Account and Bond Retirement Account. Money in the Bond Account shall be transmitted to the Bond Registrar in amounts sufficient to meet the maturing- installments aturinginstallments of principal of. premium, if any, and interest on the Bonds when due. Whenever the assets of the Bond Account 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 Account. All money remaining in the Bond Account after provision for the payment in full of the principal of, premium, if any, and interest on the Bonds shall be returned to the Electric Fund. The Bond Account 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 Bond Registrar 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 Account shall be held in trust for the benefit of the owners of all Bonds at the time outstanding equally and ratably. Reserve .4ccount Insurance Policy. The City purchased from XL Capital Assurance Inc. (now known as Syncora Guarantee Inc.), for the benefit of the Reserve Account, a debt service reserve insurance policy in the amount of 5228,2491:78 in -connection with the issuance.of the 2005 Bonds (the "Surety Policy"). The SuretyPolicy will expire when the 2005 Bonds are no longer outstanding. The Surety Policy provides that upon the later of (i) one business day on which such principal and interest becomes due for payment (ii) or the business day next following the business day on which Syncora Guarantee shall have received a notice of nonpayment executed by the Bond Registrar certifying that provision for the payment of principal of or interest on the 2005 Bonds when due has not been made, Syncora Guarantee will promptly deposit funds with the Bond Registrar sufficient to enable the Bond Registrar to make such payments due on the 2005 Bonds, but in no event exceeding the policy limit of the Surety Policy so drawn on. Pursuant to the terms of the Surety Policy; the policy limit is automatically reduced to the extent of each payment made by Syncora Guarantee under the terns of the Surety Policy, and the City is required to reimburse Syncora Guarantee for any draws under the Surety Policy with interest in accordance with its terms. Upon such reimbursement, the Surety Policy will be reinstated to the extent of each reimbursement up to but not exceeding the applicable policy limits. The reimbursement obligation of the City under the Surety Policy is subordinate to the Citv's obligations with respect to the Bonds. Syncora Guarantee is subject to the informational requirements of the Exchange Act and in accordance therewith files reports, proxy statements and other information with the Securities and Exchange Commission ("SEC"). Certain SEC filings of Svncora Guarantee are available on the company's website, www.syncora.com (which is not incorporated herein by this reference). Such reports, proxy statements and other information may also be inspected and copied at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Investment of Funds. Money in the Bond Account and in the accounts contained therein will be invested as provided in the Bond Ordinance. See APPENDIX E—"FORM OF BOND ORDINANCE." Debt Payment Record There is no record of default in the payment of principal of or interest on any bonded indebtedness of the City. J -10- P:12039 t DOT+20391 2AH 05113110 • Additional Bonds Additional Bonds may be issued payable from the Bond Account on a parity with the 2001 Bonds, the 2005 Bonds and the 2010 Bonds and secured by an equal charge and lien on the Revenues pledged to the Bond Account for any lawful purpose of the City, including the refunding of outstanding Bonds; provided that, (i) except as to Bonds issued pursuant to (d) below, at the time of the issuance of such Additional Bonds, there is no deficiency in the Bond Account, and no Event of Default has occurred and is continuing, and (ii) the requirements of the applicable provisions of the Bond Ordinance are complied with. (a) Additional Bonds may be issued for any lawful purpose of the City if City receives a certificate signed by the Finance Director setting 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) onds; (ii) the amount of the Average Armual Debt Service in any Fiscal Year thereafter on account of all Bonds then outstanding under the Bond Ordinance and the Additional Bonds to be issued thereunder_: and (iii) the percentage 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%; (b) Additional Bonds may also be issued for any lawful purpose of the City if the City receives a certificate signed by a Professional Utility Consultant and filed with the City Clerk setting forth: (i) the amount of the Adjusted Net Revenues computed as provided below; • (ii) the amount of the Average Annual Debt Service thereafter on account of all Bonds then outstanding under the Bond Ordinance and the Additional Bonds to be issued thereunder: and (iii) as to the applicable Fiscal Year under (ii) above, the percentage 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 (d) and (e) below without complying with the provisions of this (b). (c) 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 been issued, if the City receives a certificate signed by a Professional Utility Consultant and filed with the City Clerk that (i) complies With the requirementsofsubparagraph (b) above or (ii) states 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 150/o of the principal amount of the Bonds theretofore issued for such facilities. (d) 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.. (e) Additional Bonds issued under subsection (d) above may 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; are sufficient to pay (i) the principal of and the redemption premium, if any, on the -11- P:120391 D0'n20391 2AH 05:13110 Bonds to be refunded and (ii) the interest that will become due and payable on or prior to the date of their payment or e redemption, and (iii) the expenses incident to the issuance of such Additional Bonds. If such Additional Bonds are to be issued pursuant to this subsection (e) 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 will not be increased by more than S5,000 by reason of the issuance of the Additional Bonds; or setting forth: (2) There shall be filed with the City a certificate signed by a Professional Utility Consultant (i) the amount of the Adjusted Net Revenues computed as provided in (g); (ii) 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 (iii) stating that the amount shown in (i) above is not less than 125% of the amount shown in (ii) above. (f) In rendering any certificate under the Bond Ordinance, the Professional Utility Consultant may rely upon (1) 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-tbe._ 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. (g) For the purposes of the certificates required above, 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 from 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 from 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 from the proceeds of any Bonds. In calculating Annual Debt Service for purposes of meeting the requirements of the Bond Ordinance, so long as the 2001 Bonds and the 2005 Bonds remain outstanding, 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 -12- PA20391 DOT120397_2AH 051131}0 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. [From and after such time as no 2001 Bonds or 2005 Bonds remain outstanding, 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 an interest rate equal to the yield to maturity equal to the higher of (i) the average of the SIFNNM Municipal Snap Index over the 60 month period immediately preceding the date of computation, or (ii) the average of the SIFMA Municipal Swap Index over the 12 month period immediately preceding the date of computation, as determined within ten days prior to the date of computation or, if such computation is being made in connection with the certificate required by this Section, them within ten days prior to the date of such certificate-] Refunding and Subordinate Lien Bonds. Nothing contained in the Bond. Ordinance prevents the City from refunding all of the Bonds then outstanding. Nothing contained in the Bond. Ordinance prevents the City from issuing obligations payable from a lien on the Revenues that is junior and inferior to the Bonds. Repair and Replacement ofElectric Svstem. Additional. Bands 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 for the 2005 Bonds must be obtained prior to the issuance of -Additional. Ponds pursuant to this subsection - Additional Covenants The City has covenanted in the Bond Ordinance to maintain the properties of the Electric System in good repair, to sell or otherwise dispose of the Electric System in its entirety only if provision is made for the redemption of all Bonds. if any, then outstanding- to insure properties of the Electric System, and to keep proper books of account of the. Electric System. See Appendix A—"FORi1!f. OF BOND ORDINANCE-" The following is a brief summary of many of these covenants. _Maintenance and Operation. The City has agreed in the Bond Ordinance that it will at all tithes 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 tithes 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 correction therewith or cause such properties and business to be operated in an efficient manner and at a reasonable cost. Sale or Disposition of System- The City has agreed in the Bond Ordinance that it will not sell, mortgage, lease or otherwise dispose of the properties of the Electric System except as provided below. (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 ereater of the following amounts, provided, such amount is in excess of SI WOW -13- P:2a393 oor20391zaH 05,r3i10 W An amount that will be in the same proportion to the net principal amount of .Bonds then0 outstanding (defined as the total principal amount of Bonds outstanding less the amount of cash and in■Iestments in. the Bond Account) 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 (ii) 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. i The Cite is only required to comply with the requirements of subsections (i) and (ii) above if the proceeds of such sale, lease or other disposition exceed 2° o 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 has become unserviceable inadequate, obsolete or unfit to be used in the operation of the Electric System. or no longer necessarv, 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 Account for credit to the Reserve, Account to the extent of any deficiency in such. Deserve Account, and the balance of such proceeds, if any, shall be deposited in the Electric Fund. (d) :Notwithstanding any other provision of the. Bond Ordinance 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 the Additional Bonds test described below. . Insurance. ••:The:.City will .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. Book! and _Accounts. The City will maintain complete books and records relating to the operation of the Electric System and its financial affairs, and will cause such books and records to be audited annually, which will be available to any owner of Bonds upon request. :'o Free Service. Except as permitted by law, the City will not furnish any service of the Electric System to any customer whatsoever free of charge. No Acceleration of the 2010 Bonds The 2010 Bonds are not subject to acceleration upon the occurrence of an Event of Default. The City, therefore, would be liable only for principal and interest payments as they become due. In the event of multiple defaults in payment of principal of or interest on the 2010 Bonds, the Registered Owners would be required to bring a separate action for each such payment not made. This could give rise to a difference in interests between Registered Owners of earlier and later maturing 2010 Bonds. • -14- P:20391_Q6i20391_2M 05.'13110 • DEBT INFORMATION Description of Outstanding Bonds Following the issuance of the 2010 Bonds, the City will have the following Bonds outstanding: Outstanding Principal Issue Final Maturity_ amount 2001 Bonds - S2,560,000 (1) September 1, 2022 $ 1,865,000 2005 Bonds - S3,185,000 (1) September 1, 2010 2,635,000 2010 Bonds - S (2) September 1, Total S (1) Original principal amount. (2) Preliminary. subject to change. Schedule of System Debt Service (1) Includes the outstanding 2001 Bonds and 2005 Bonds. (2) Preliminary, subject to change. (3) Based on Fiscal Fears ending December 31. (4) Assumes interest rates ranging from _% to _%. (5) Totals may not foot due to rounding. Additional Bonds The City does not currently intend to issue Additional Bonds on a parity of lien with the 2001 Bonds, the 2005 Bonds and the 2010 Bonds in the next 12 months. • -15- P:t20391_D01120391 2AH 05113110 2010 Outstanding Bonds (1) Bonds (2) Total Year (3) Principal Interest (4) Principal Interest Parity Debt 2010 $ 235,000 S 194,933 $ 2011 245.000 185,478 2012 250,000 174,873 2013 260,000 164,068 • 2014 275,000 152,828 2015 285,000 140,918 2016 295,000 128,995 2017 315,000 116,603 2018 325,000 102,983 2019 340,000 88,588 2020 355.000 73.503 2021 ;65.000 57,773 2022 385,000 41,503 2023 205,000 24,198 2024 215,000 15,588 2025 150,000 6_.450 2026 - - 2027 - 2028 - Total (5) $4,500,000 S1,669,282 $ (1) Includes the outstanding 2001 Bonds and 2005 Bonds. (2) Preliminary, subject to change. (3) Based on Fiscal Fears ending December 31. (4) Assumes interest rates ranging from _% to _%. (5) Totals may not foot due to rounding. Additional Bonds The City does not currently intend to issue Additional Bonds on a parity of lien with the 2001 Bonds, the 2005 Bonds and the 2010 Bonds in the next 12 months. • -15- P:t20391_D01120391 2AH 05113110 Junior Lien Debt O Nothing in the Bond Ordinance prevents the City from issuing bonds, notes, warrants, or other obligations payable from and secured by a lien and charge on the Revenues junior to the lien and charge of the Bonds. The City has no outstanding obligations that have a subordinate lien on the Revenues. TAE ELECTRIC SYSTEM The Electric System The City formed a municipal electric utility in July of 1893 making it the fourth oldest electric utility on the west coast. As of June 1, 2010, the Electric System served over 10,500 customers over approximately 9 miles of transmission, approximately 103 miles of overhead distribution and over 40 miles of underground distribution with 7 substations within its 10.7 square mile service territory. The City receives power from two sources. Less than 0.5% is produced at a hydroelectric facility owned by the City (see .'`Morse Creek Project" below), and the remainder is purchased from the Bonneville Power Administration (`Bonneville") (see "Bonneville Power Administration" below). The City's source of power for its Electric System is from Bonneville's Port Angeles Substation. Two 69 kilovolt (kV') transmission lines form a nine mile loop around the City. Seven 69/12.47 kV substations with a combined base capacity of 300 megawatts provide the 12.47 kV source for 24 distribution feeders. The 12.47 kV distribution feeders extend for 129 line miles, consisting of 103 line miles of overhead distribution and 40 line miles of underground distribution. The transmission system is planned and designed for complete single contingency coverage. The average load in 2009 was 78,849 kilowatt ('W"), and the peak load was 135,500 kW. Nippon Paper Industries, the Electric System's largest customer (see :`Taraest Customers" below); is served directly from Bonneville's Port Angeles -substation. using Nippon Paper Industries' own transmission facilities. In 2006, the City entered into an agreement with Bonneville to provide all of the Electric Utility's transmission needs through September 30, 2036. An additional agreement was made with Bonneville in 2008 that provides for all of the Electric System's power supply needs through September 30, 2028. A separate rate case concluded in 2007 provides a cost methodology for the Bonneville agreement through September 2011. The wholesale VW demand cost for each individual month varies as does the kilowatt hour ("kWh") energy cost during heavy load hours and light load hours. Thus, there are 36 individual kWh charges depending on the month and the time of day that consumption occurs. In addition, Bonneville has provided a rate mechanism that will provide it with the ability to adjust rates as often as every six months to meet three criteria: (1) achieve cost recovery for purchased power; (2) ensure repayment of its treasury repayment obligations: and (3) ensure its reserves meet a minimum acceptable level. The City is exposed to these rate adjustments in April and October of each year. The quantity and price of the power that Bonneville must purchase in the open market to satisfy its supply obligations will drive if when and how much Bonneville adjusts its rates. For further information relating to Bonneville and the City's power sale contract with Bonneville, see "Bonneville Power Administration" herein. Rates and Charges The City is authorized under RCW 35A.80.010 to establish, maintain and collect rates and charges for electric energy that are fair and nondiscriminatory and adequate to provide revenues sufficient for the payment of the principal of and interest on its revenue obligations for which payment has not otherwise been provided, for all payments which the City is obligated to set aside in any special fund or funds created for such purpose, and for the proper operation and maintenance of the Electric System and all necessary repairs, replacements and renewals thereof. The Citv has maintained rates for electric service and other charges that have been sufficient to provide for all operating and maintenance costs and expenses, debt service, repairs, replacements and renewals and to provide for a major portion of the capital additions to the Electric System. -16- P?20391 DOW0391_2AH 05/13/10 Rate -Setting Process. The Cite Council serves as the governing body of the Electric System and has responsibility for, among other things, setting razes. The City Council generally reviews utility rates once a year- Under present law, the City has the exclusive authority to set rates and charges for electric energy and sen ices. Such rates are not subject to regulatory approval by any state or federal agency or commission. The City has not changed its rates since October 2007. The overall rate increase for all classes of customers was 5-9 percent beginning October 1, 2007. For rate-serting purposes. a financial consultant is periodically engaged to assist City staff with load forecasting and system operating and capital plans. The City staff prepares cost -of -service studies- Based on these planning documents, as finally approved by the City Council, City staff estimates the Electric System's revenue requirements and various rate proposals designed to produce this revenue. The City Council holds public meetings to consider the Electric System's proposed budget, six-year construction plan, load forecast and effects on the Electric System's revenue requirements and take public testimony on the proposals. Such comments are then considered and the Council makes a final decision as to rates. Customers are charged a base rate, plus an additional charge based on usage. The City currently charges Nippon Paper Industries rates pursuant to City Code Section 13.12.071, which generally consists of a wholesale charge based on use plus City and State utility taxes. The City is currently negotiating terms of a power sales agreement with Nippon Paper Industries. Monthly charges for electricity: as applied to customer classes, are shown in the following table- The table does not include rates charged to Nippon Paper Industries. City of Port. Angeles Electric Utility Customer Rates Description Residential Nvn-Praft (1 -Phase) - Non -Profit (3 -Phase) Small Commercial (1 -Phase,) Small Commercial (3 -Phase) Medium Commercial (I -Phase) Medium Commercial (3 -Phase) Large Commercial (Sept -May) Targe Commercial (lune -Aug) Source: The City Base ,bate Usage Rate $11-44 .0582: per kWh $15.04 .0634 per k` klh $37.50 .0634 per kNN111 $15.00 .0585 per kWh $37.50 -0587 per k'%Vh $30.06 -0392 per kWh $75.045 .0392 per kWh .$200.04 .0394 per kWh $204.00 -4244 per kWh Historical Customers and Ener- Revenues Demand Charge MA NiA NIA. N/A N!A. 3.35 per kVA 3.35 per kVA 4.15 per kVA 4.'15 per kVA. The tables below show the number of customers and revenues by customer class for the 'Electric Systemfor the years 2005 through 2009, Electric Accounts by Customer Type Year Residential Commercial. Industrial (1) Total 2009 8,927 1,639 1 10,567 2048 8,778 1,631 1 10.410 2007 8,853 1,668 1 10.522 2006 8.772 1.639 1 10,412. 2005 8,662 1,559 1 10,222 (1) Nippon Paper Industries. See "Largest Customers" below - Source: The City° -1.7- x':120349-ppT20341-2AH 0503130 i Electric Revenues by Customer Type Year Residential Commercial Industrial Total 2009 S 9,446,748 58,0047480 512,082,032 $29,533,260 2008 9, 148,027 7,821;026 1.3.313,933 30,282,986 2007 8,847,341 7,766,454 13.025,886 29,389,681 2006 81404.952 7,473,951 13,461,174 29,340.077 2005 7,796,796 6,381,106 12.,465,768 26,643670 30ur,ce : I ne U11V Largest Customers The following table shows energy sales to the Electric System's ten largest customers. for the year ended December 31, 2409. The Electric System's ten largest customers represent $1.5,465,633 (or 52.49/o) of total. Rei-enues received for 2009 (529,533,260). City of Port Angeles Ten Largest Customers for 2009 aource: I ne �_113; Nippon Paper Industries LISA Co__ Ltd. ("Nippon Paper Industries") (formerly Daishowa) is the Electric System's largest customer and comprises 58.7 percent of the total system power usage and represents 40.9% of Revenues of the Electric System for 2009- Nippon Paper Industries is a subsidiary of Nippon Paper Group, Inc., an international company specializing in the paper business, covering newsprint, printing and writing paper, business communication paper and industrial paper. The Port Angeles mill is dedicated to malting paper for telephone directories for the North. American market. See "City's Response to Potential. Industry Changes—Impact of Losing a Large Customer" below. Electric System 'Employees Currently there are 23 full-time equivalent employees assigned to the 'Electric System. The International. Brotherhood of Electrical Workers ("IBE% ) represents 19 of these employees. The IBEW contract will expire on December 31. 2010. Sze "THE CITY—Labor Relations" for a discussion of the City's relations with its labor unions. -18- RUW9't_DM20391_2AH OY13/10 0 0 Annual Electric Percent of Customer Charges Billed Total Sales Nippon Paper Industries $12,092,032 40.9% . The City- : - .. ........834,864. 2:8 Olympic Medical Center 682,785 2.3 Port Anzeles Hardwood LLC: 405,764 L4 Part An_aeles School District 340,643 1.2 Port of Port Angeles 287,1.04 1.0 Clallam County 271;308 1.0 Westport Shipyard Inc. 226;111 0.8 Peninsula College 194547 0.7 United States Coast Guard 1.40375 0.5 Total S15,465,533 52.4% aource: I ne �_113; Nippon Paper Industries LISA Co__ Ltd. ("Nippon Paper Industries") (formerly Daishowa) is the Electric System's largest customer and comprises 58.7 percent of the total system power usage and represents 40.9% of Revenues of the Electric System for 2009- Nippon Paper Industries is a subsidiary of Nippon Paper Group, Inc., an international company specializing in the paper business, covering newsprint, printing and writing paper, business communication paper and industrial paper. The Port Angeles mill is dedicated to malting paper for telephone directories for the North. American market. See "City's Response to Potential. Industry Changes—Impact of Losing a Large Customer" below. Electric System 'Employees Currently there are 23 full-time equivalent employees assigned to the 'Electric System. The International. Brotherhood of Electrical Workers ("IBE% ) represents 19 of these employees. The IBEW contract will expire on December 31. 2010. Sze "THE CITY—Labor Relations" for a discussion of the City's relations with its labor unions. -18- RUW9't_DM20391_2AH OY13/10 0 0 • Comparison of Monthly Electric Bills The following table shows a comparison of the City's monthly electric bills for selected resident.iaL commercial and industrial loads with the bills charged by certain other public and private Northwest utilities. The comparative monthly electric bills shown are, based on specific rate schedules for each utility; the use of other schedules applicable to particular customers will yield different results. 'Vi'ashington Cities_ The City of Port. Angeles Citi- of Seattle City of Tacoma Washington. Public Utility Districts: Clallam County Grays Harbor County Mason County No. 1 Mason County No, 3 Private Power Company: Peninsula Light.Co. Comparative -Monthly Electric Bills (as of Januar?• 1, 2010). (1) Residential Commercial Industrial (1.500 kWh) (30 kW, 9.000 kWh) (400 M 1.50,000 kWh) 98 S 542 5 7.770 117 574 8.613) 99 577 7,2.47 108 575 7;180 115 655 5.610 112 651 105 636 8,878 119 632 (1) Winter rates if applicable; computed fi-snr rate schedules provided by or found on the websites of the utilities listed. There are variations in rate schedules and rate classifications of the utilities - Source: The City and individual utilih- Websites. Bonneville Power Administration General. The City is a statutory preference customer of Bonneville and currently purchases virtually all of its power from Bonneville at cost -based rates that are adjusted by Bonneville from time to time. Bonneville was established by the federal Bonneville Project Act in 1937 to acquire the conservation and generating resources needed to sen -e its contract obligations; to market at wholesale the electric energy from federal and other hydroelectric projects in the Pacific Northwest, a nuclear project and such additional resources as it may acquire; and to construct, operate, and maintain transmission lines and substations that interconnect the federal, hydroelectric projects and non -federally owned power systems and projects. The City and other publicly -owned utilities and cooperatives are "preference" customers of Bonneville pursuant to federal legislation, which requires BOnnevrille to gime pricing preference and priority= to public agencies and cooperatives in the distribution and marketing of federal power_ The Pacific Northwest Electric Power Planning and Conservation Act (the "Act") requires that Bonneville: (a) offer to sell power to each requesting Pacific Northwest utility, including the Electric Utility, to meet its firm power loads in the region in excess of the utility's own resources: (b) meet its obligations to provide power through conservation to the extent that consenation is cost effective; and ((c) meet such obligations, to the extent consenntion measures are insufficient. by acquisition of cost effective electric power first from renewable resources. Although one of the purposes of the Act is to assure the. Pacific Northwest an adequate power supply, it does not ensure that Bonneville 13 :11.1 always have adequate resources to meet all pourer- supply obligations. Fede -al S}- stent. Bonneville markets power from 31 federal hydroelectric projects, Energy Northwest's Columbia Generatinb Station, and several generation projects in the Pacific Northwest that are not owned by the federal government. Bonneville also markets power obtained through long-term contractual rights, including wind:, hydroelectric and co -generation. Its service area covers over 300,000 square miles and has a population of about -19- R:2D391-DCTUO39124H 05i1311D twelve million. Bonneville sells electric power to more than 1.2.0 utility, industrial and governmental customers in the Pacific Northwest.. The federal and non-federal generation projects have an installed peak generating capacity- of approximately 20,000 MW and a firm energy capability of approximately 8,607 average MW (the "Federal System"). The federal projects are built and operated by the United States Bureau of Reclamation and the United States Army Corps of Engineers and are located primaWty in the Columbia River basin in Washington_ The Federal System currently produces approximately 451Xo of the Pacific Northwest region's energy requirements. Bonneville's transmission system includes over .15,000 circuit miles of transmission lines, provides about 75% of the Pacific. Northwest's high-voltage bulk transmission capacity and settees as the main power gnd for the Pacific Northwest. Bonneville's Transmission facilities interconnect with utilities in the Canadian province of British. Columbia and with utilities in the Southwest. Bonneville Rates. Bonneville is required by federal law to establish rates to recover its costs and therefore sells power at cost -based wholesale rates. In February 2009, .Bonneville announced its first rate increase since 2003, and in October 2009.Bonneville increased its wholesale rates by approximately 7 percent. Bonneville expects to hold its transmission rates flat, resulting in a combined power and transmission rate increase of approximately seven to eight percent for Bonneville's preference customers. Rates proposed by Bonneville are subjected to a formal public review process, after which they are established by Bonneville and reviewed by the Federal Energy Regulatory Commission ("FERC"). FERC's review is limited to standards set out in the Regional. Power Act. FERC reviews Bonneville's rates for all ficin power, for nonfirm energy sold within the Pacific Northwest, and for transmission sen=ices under statutory standards that include a requirement that these rates be sufficient to assure repayment of the federal investment in the Federal. System over a reasonable number of years after first meeting Bonneville's other costs. After final FERC approval, Bonneville's rates may be reg=iewed by the United States Court of Appeals for the Ninth Circuit. FERC and the Court of Appeals may either confirm or reject a rate proposed by .Bonneville. e -Beginning October 1, 2411, the City's 'Bonneville Contractand- comparable, power sales agreements between Bonneville and its other preference customers recognize that the aggregate power supply requirements of all preference customers now exceed the Finn generating capacity of the Federal System_ The Bonneville Contract will allocate all of the firm generating capacity of the Federal System to Bonneville's preference customers with each customer's allocation of firm power called its "Contract High Water Mark_" All power purchased by a customer from Bonneville up to its Contract High Nater Mark will be priced at Bonneville's "tier I" rates, which are designed to recover all costs of the Federal System. Individual utility customers may purchase additional power from Bonneville to meet their power supply requirements in excess of their Contract. High Water ,Marks, including power supplies necessary to meet retail load growth, or may enter into other arrangements to -meet their additional requirements. Additional power purchased from. Bonneville will be priced at. Bonneville's "tier 2" rates that recover Bonneville's actual costs of obtaining supplemental power supplies. The City's payment obligations to .Bonneville for energy purchased under the Bonneville Contract constitute an Operating Expense of the Electric System. (]lFier Considerations. Any number of factors could impact Bonneville's cost of sen -ice, including federal legislation, Bonneville's obligations regarding its outstanding federal debt, number of customers, water conditions, fish and other environmental regulations (which could impact expenditures and the amount of power produced at various projects), capital needs of the Federal System, and regional transmission issues. Any factors that impact Bonneville's cost of service would impact the rates paid by the City under its Bonneville Contract. Energy Northwest Energy Northwest, formerly the Washington Public Power Supply System_. is a municipal corporation and a joint operating agency organized and existing under the laws of the State. Energy Northwest has the authority to acquire,. construct and operate works, plants and facilities for the generation and transmission of electric power and energy. The City is a member of Energy Northwest, and has contracted through Bonneville for a percentage of Energy Northwest's output. The City has entered into a Net. Billing Agreement with Bonneville, in which the City's payments for the cost of Energy Northwest power are made directly to Enctyy Northwest- Payments made by the City under these Agreements are nominal- 0 -20- R_20381_DOT1203912AR as,13110 • • • Morse Creek Project The City operates a small hydroelectric generation facility on Morse Creek. The project produces enough power to serve about 200 homes. Maximum capacity of the plant is 500 kW. The City's cost to operate and maintain the Morse Creek Project was approximately 560,939 in 2009. which is comparable to the cost of Bonneville wholesale power. The Morse Creek Project is not capable of expansion, however; small increases in generation may be possible when equipment is replaced. Capital Improvement Program The City's electric capital program for 2010 through 2014 is shown in the following table. Proceeds of the 2010 Bonds will be used to pay a portion of the costs of replacing and upgrading electric meters, streetlights, and poles, and constructing other capital improvements to the Electric Utility in the years 2010 and 2011. The remaining upgrades; expansions, repairs and replacements are expected to be financed by rates, charges and fees collected by the City. Electric Utility Capital Facilities Plan Repairs and Replacements Upgrades and Expansions Total Source: CityofPortAngeles. Conservation and Environmental Issues 2010 2011 2012 2013 2014 S1.280;000 54,197,000 S 310000 S1,100,000 S 300,000 585,000 245,000 1450,000 1,560,000 1,190,000 52,165,000 $4,442,000 S1,760,000 $2,660,000 S1,490,000 Energov Conservation Program. Pursuant to Ordinance No. 3391 adopted by the City Council on February 7, 2010, the City currently funds and administers an Energy Conservation Program designed to acquire electric energy through the installation of cost-effective conservation measures, renewable energy systems, and generation resources in effort to minimize or eliminate future Bonneville Tier 2 power supply purchases. The 2010 City budget includes 5300,000 of Revenue of the Electric System to supplement Bonneville funds which will be deposited into the Conservation and Renewable Energy Program Fund for the purpose of financing the Program. The City's Director of Public Works and Utilities currently administers the Program, including the determination of cost-effective activities and working with customers of the Electric System to fund cost-effective activities within the City. Fish and Tirildlife. Since 1991, various salmon species in the Columbia River Basin have been listed as threatened or endangered under the Endangered Species Act ('`ESA"). Under the ESA, federal agencies must ensure that their actions are not likely to jeopardize the continued existence of these species or result in the destruction or adverse modification of their critical habitat. In view of these listings. Bonneville, the United States Bureau of Reclamation and the United States Army Corps of Engineers have undertaken measures to protect salmon, which have resulted in a reduction in the amount of firm power and energy available for sale by Bonneville. These measures also have resulted in significant increases in expenditures by Bonneville. Listings of other Columbia River Basin fish under the ESA have been sought and may be sought in the future. The listing of these and other fish under the ESA, and other actions to protect fish and wildlife generally, may result in operation of the Federal System in a manner that reduces its power generating capability. Carbon Footprint. The City's power resources consist almost entirely of hydroelectric power. As a result, the City's Electric System operations are responsible for very little carbon dioxide emitted through the combustion of fossil fuels. The City currently does not foresee any significant additional costs to its operations as a result of future legislative or other measurers seeking to remedy or reduce carbon dioxide loads unposed upon the environment. -21- P 120391_DO1120391_2AH 05:13/10 City's Response to Potential Industry Changes Bonneville. Historically, the City has purchased the majority of its power supply from Bonneville. The City cannot predict with certainty what Bonne-61le's rates will be after September 30, 2011 under the tiered rate methodology. There are numerous factors that could impact Bonneville's rates after that time. Because purchased power represents over 99.5 percent of the City's supply, the effects of wholesale electricity cost changes have a direct impact on all Electric Utility customers. The City intends to continue purchasing power from Bonneville for the duration of its twenty-vear contract. See `Bonneville Power Administration" herein. Impact of Losing a Large Customer. Nippon Paper Industries (formerly Daishowa) is the Electric System's largest customer and comprises 58.7 percent of the total system power usage and represents 40.9% of Revenues of the Electric System. The loss of this customer would result in an immediate reduction in the variable cost for power purchased from BonneNille. The City currently does not include fixed costs of the Electric. System in the rates charged to Nippon Paper Industries in effort to mitigate the sales revenue risk in the event of loss of this customer. �I 0 -22- P:M391_DOP20391_2AH 05!13110 • Historical Operating Results • • The following tables presents the City's Electric System historical operating results for the years 2005 through 2009. The City's audited financial statements for fiscal year ended December 31, 2009 are attached hereto in Appendix C. City of Port Angeles Electric Fund Historical Coverage from Operations For Fiscal fears Ended December 31 Operating Revenues Charges for services Miscellaneous Revenues Total Operating Revenues Other Income Interest Income Construction Contributions (1) Other Income (Loss) (2) Total Other Income Operating Expenses Purchased power (3) Operations and Maintenance Taxes -other than City taxes Total Operating Expenses Transfers Operating Transfers In/ (Out) (4) Net Revenue Available for Debt Service Parity Debt Service 2001 Bonds 2005 Bonds Total Parity Debt Service (5) Debt Service Coverage Ratio 2009 2008 2007 2006 2005 $ 29,312,803 S 30,628,095 317,360 134,399 29,630,163 30,762,494 198,306 389,133 291,086 636,122 (186,041) 1,875,345 303,351 2,900,600 S 29,814,975 S 29,378,128 S 27,020,917 166,072 484,999 617,272 29,981,047 29,863,127 27,638,189 219,707 202;812 149,056 501,335 538,388 133,364 175;683 20,560 (79,559) 896,725 761,760 202,861 19,238,492 20,701;806 20;815;372 21,18106 •• .19,869,928 4,362,770 4,370,326 4,521,907 4,341,624 3,941,334 1;089,103 1,113,691 1,098,798 1;064,221 1,005,566 24,690,365 26.185,823 26,436,077 26,586951 24,816,828 (808;064) (1;785,888) (241,238) (224,413) (42,601) S 4,435,085 S 5,691,383 S 4,200,457 S 3,813,523 S 2,981,621 192,900 196,750 200,350 198,580 201;573 234,733 228,182 226A3 229;782 156,685 S 427,633 S 424,932 S 426,833 $ 428,362 S 358,258 10.37 13.39 9.84 8.90 8.32 (1) Contributions are from developers and the National Park Service. (2) Increase in 2008 reflects receipt of a settlement payment of $1,050,000 from Bonneville for previous overcharges. (3) See `Bonneville Power Administration" above. (4) In 2008, the City established a Conservation and Renewable Energy Program Fund which was previously included in the Electric Fund. In 2008 and 2009; the operating transfers out constitutes Bonneville funds transferred to the Conservation and Renewable Energy Program Fund for the purpose of financing the Energy Conservation Program. See "Conservation and Environmental Issues" above. Y (5) See "SECURITY FOR THE 2010 BONDS -Rate Covenant." Source: The City -23- P:120391_00P20391_2AH 05113/10 Electric Fund Comparative Balance Sheet Assets For Fiscal Years Ended December 31 Assets Current Assets: Cash and Equity in Pooled Investments (1) Net Receivables Interest Accounts Due from Other Governments Inventory (2) Total Current Assets Audited Audited Audited Audited Audited 2009 2008 2007 2006 2005 S 6,976,630 S 5,757,089 $ 3,202,690 S 2;398,303 S 2,177,813 40,028 40,433 25,776 19,547 15,146 3,947,587 4,348,576 4,288,965 4,270,996 5,444,400 - 159,780 121,059 7,976 6,369 1,154,096 1,177,737 803,510 789,171 911,535 12,118,341 11,483;615 8,442,000 7,485,993 8,555,263 Other Assets: Unamortized Discount Refunding Debt 16,547 17,836 19,125 20,415 21,704 Deferred Amount on RefWadine v 173,451 185.663 197,876 210,088 222,300 Total Other Assets 189,998 203,499 217,001 230;503 244,004 Restricted Assets: Cash and Cash Equivalents for. Contingencies and Replacements (3) - - 104,844 104,844 104,844 Debt Service 172,603 172,603 172,603 172,603 172,603 Customer Deposits for Utility Accounts 412,228 393,747 370,866 326,785 296,448 Rate Stabilization Account (3) - - 500,000 500;000 500,000 Total Restricted Assets 584,831 566,350 1,148,313 1,104,232 1,073;895 Prroper y, Plant and Equipment Land and Land Improvements 379,657 379,657 379,657 343,439 343,439 Buildings 365,440 365.440 - - - Improvements 25,543,569 25,527,878 25,425,397 24,562,090 21,973,432 Utility plant in Service 10,212,161 8,930,562 8,082,096 81015,311 6,954,261 Furniture, Machinery and Equipment 624,437 512,988 521,553 533,788 533,788 Asset Held for Resale - - - 36,219 36,219 Construction in Progress 150,216 293.837 100,657 46,711 2,279,952 Total Property, Plant and Equipment 37,275,480 36,010,362 34,509,360 33,537,558 32,121,091 Less Accumulated Depreciation (14,751,556) (13.629,369) (12,667,456) (11,829,071) (111315,187; Net Property, Plant and Equipment 22,523,924 22,380.993 21,841,904 21,708,487 20,805.904 Deferred Charges: Unamortized Bond Discount 92.023 98,449 104,876 111,302 117,728 Total Assets S 35,509,118 S 34,732,906 $ 31,754,094 S 30,640,517 S 30,796,794 (I) Increase in 2008 reflects receipt of a settlement payment of $1;050,000 from Bonneville for previous overcharges. (2) Inventory includes substations, relay stations, transformers; electric meters, cable and otber supplies of the System. (3) Under guidelines from City Council, the Rate Stabilization Account and Contingency and Replacement Account are considered assigned fund balances, rather than restricted. Assigned fund balances for the Rate Stabilization Account is 5900,000 and for the Contingency and Replacement Account is 5104,844 and are now included in Current Assets as Cash and Equity in Pooled Investments. Source: The City -24- PA20391_DOT20391_2AH 05113/10 0 0 • • Electric Fund Comparative Balance Sheet Liabilities and Fund Equity For Fiscal Years Ended December 31 Fund Equity Contributed Capital Audited Audited Audited Audited Audited Contributed Capital from Grants 2009 2008 2007 2006 2005 Liabilities and Fund Equity 14,013,426 12,763,651 10,650,457 9;778,306 10,293,695 Current Liabilities 27,629,593 26,088,732 23,339,416 21,965,930 21,942,931 Accounts Payable S 2,507.610 S 3,000,210 S 2,489,280 S 2,528,275 S 2,493,464 Due to Other Funds 102,192 100,569 95,199 88,857 155,316 Due to Other Governments 97,453 116,959 102,302 127,723 117,339 Wages Payable 54,158 96,694 79,S88 71,614 62,463 Current Portion of Compensated 13,771 10,801 141,605 180.301 182,522 Absences Interest Payable 64,978 67,544 69,978 72,278 74,454 Current Portion of Lone -Term Debt 235,000 225,000 215,000 210,000 205,000 Customer Deposits Payable 412,228 394,067 370,866 - - Other Current Liabilities 2.703 5,516 5 15,662 10.774 Total Current Liabilities 3,490,093 4,017,360 3,564,123 3,294,710 3,301,332 Long -Term Liabilities Non-current Compensated Absences 123,133 125,430 124,082 111,275 91,133 Deferred Revenue - - - - 7,445 Customer Deposits - - - 327,043 296,308 Unamortized Bond Discount/Premium 1,301 1,387 1.473 1,559 1,645 Lone -Term Debt 4265.000 4.500,000 4,725,000 4,940.000 5.1501000 Total Long -Term Liabilities 4,389,434 4,626,817 4,850,555 5,379,577 5,552,531 Total Liabilities 7,379,525 8,644,177 8,414,678 8,674,587 8,853,863 Fund Equity Contributed Capital 102327,222 10,036,136 9,400,014 8,898,679 8,360,291 Contributed Capital from Grants 3,288,945 3,288,945 31288,945 3,285,945 3,288,945 Retained Earnines - Unreserved 14,013,426 12,763,651 10,650,457 9;778,306 10,293,695 Total Fund Equity 27,629,593 26,088,732 23,339,416 21,965,930 21,942,931 Total Liabilities and Fund Equity S 35,509.118 S 34,732,906 S 31,754,094 S 30,640,517 S 30,796,794 -25- PA20391_D0TT20391_2AH O5,113110 Electric Fund Statement of Revenues, Expenses and other Changes in Fund Equity For Fiscal fears Ended December 31 Operating Revenues Charges for Service Miscellaneous Revenues Total Operating Revenues Operating Expenses Purchased Power Operation and Maintenance Taxes Administrative and General Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Intergovernmental Interest Income Interest Expenses Grants Gain (loss) on sale of capital assets Bond premiums Debt Issuance Income (Loss) before Operating Transfers Operating Transfers Operating Transfers ht!(Out) Net Income (Loss) Fund Equity Begumine of Year Extraordinary Item Prior Period Adjustment Increase in Contributions Fund Equih' at End of Year Source: The City Audited Audited Audited Audited Audited 2009 2008 2007 2006 2005 S 29,312,803 S 30,628,095 $ 29,814,975 $ 29,378,128 S 27,020,917 317,360 134,399 166,072 484,999 617.272 29,630,163 30,762,494 29,981,047 29,863,127 27,638,189 19138,492 20,701,S06 20;815,372 21,181,106 19,869928 2,676,273 2,726,747 2,896,813 2,935,806 2,595,996 2,851,612 2;964,029 2,895,384 2,754,792 2,628,218 1.686;497 1,643,579 1,625,094 1,405,818 1,345,338 11131,716 1,091,732 1,030,385 873,854 868,124 27,584,590 29,127,893 29,263,048 29,151,376 27,307,604 2,045,573 1,634,601 717,999 711,751 330,585 14,025 27,661 30,393 - - 198,306 389,133 219,707 202,812 149,056 (200,066) (3,608) (5,467) (6.453) (8,118) - 22,951 150,757 27,013 - 776,745 - - (71,441) - - - - 296,946 2,057.838 2,847,483 1,113389 935,123 700,042 (805,064) (1,785,888) (241,238) (224,413) (42,601) 1,249,774 1,061,595 872,151 710,710 657,441 26,088,732 23,339,416 21,965,930 21,942,931 21,152,126 - 1,051,596 - - - - - - (1;226,099) - 291,086 636,122 501,335 538,358 133,364 S 27,629,593 S 26,088,732 S 23,339,416 S 21,965,930 S 21,942,931 -26- P:\20391_D0T120391_2AH 05,13110 El is • THE CITY The City is a non -charter code city incorporated in 1890. The City encompasses an area of approximately 10.7 square miles in northwestern Clallam County along U.S. Highway 101 on the northern shore of Washington's Olympic Peninsula. The City had an estimated population of 19.360 in 2010. The City operates under the laws of the State of Washington applicable to charter code city with a council-manager form of government. City elected officials consists of seven council members. The registered voters of the City elect the Council members to four-year terms. Council members serve staggered terms. From its members, the City Council elects the Mayor and the Deputy Mayor, who each serve two-year terms. The Mayor and Deputy Mayor each have an equal vote on the Council. The Mayor presides over all Council meetings and represents the City at ceremonial events. The Council is the legislative authority of the City and is responsible, among other things, for passing ordinances and resolutions: holding public hearings, adopting the budget, appointing committees_ and adopting general policies and goals for the City. The Council appoints a City Manager who serves as chief administrator of the City and oversees the entire city government under the direction and policies of the Council. All City department directors report to the City Manager. The City is a general-purpose government and provides public safety, fire prevention, street improvement, parks and recreation, health and social services, and general administrative services. In addition the City operates facilities for the supply, treatment and distribution of water, the collection and treatment of sewage, storm water drainage, solid waste collection, and a regional solid waste processing facility. Other local governments provide public education and library services. v The Council holds regular meetings twice a month and special nreetinQs as needed. All meetings are open to the public as provided by law and agenda items are prepared in advance. Brief resumes of the current Mayor, Deputy • Mayor, Council members and selected administrative officials follow. Principal City Officers Current members of the Council are: Elected Officials Mame Position Term Expires Dan Di Guilio Council Member and Mayor 12.:31!2011 Don Perry Council Member and Deputy Mayor 12/3D2011 Brad Collins Council Member 12/31/2011 Patrick Downie Council Member 12/3112013 Cherie Kidd Council Member 12/31%2011 Max Mania Council Member 12•'31!2013 Brooke Nelson Council Member 12/31/2013 Dan Di Guilio, Voyor. Mr. Di Guilio joined the City Council in January 2008. After serving three years in the United States Army, Mr. Di Guilio attended Western Washington University. Mr. Di Guilio has worked as a Law and Justice Planner at Grays Harbor Regional Planning Commission; the .Director of Pacific Transit System from 1980-1985; the General Manager of Clallam Transit System in 1995, retiring from that position in 2005. From 2007 to 2009, he worked as Director of Housing Improvements for Olympic Community Actions Programs. Mr. Di Guilio has served on numerous boards and commissions including the Juvenile Dispositions Standards Commission, the Washington State Transit Improvement Board, and the Pacific County Regional Planning Council. Don Perry Depury Afayor. Mr. Perry and his family moved to Port Angeles in 1985 and worked in the insurance • industry as an agent and broker for over 30 years. Over the years he has been a member of the Port Angeles Lions -27- P120391 D0T120391 2AH 05113/10 Club, Elks Club, Chamber of Commerce, YMCA, Clallam County Historical Society, and charter member of the Clallam County Task Force for Youth at Risk, serving on many of these boards. Deputy Mayor Perry has also served on the Port Angeles Downtown and Port Angeles Business Associations. Brad Collins, Councilmember. Mr. Collins was appointed to fill a vacancy as a result of a resignation until the next several election in 2011. He is retired from a 40 -year career in public service, including 15 years with the City of Port Angeles as the Community Development Director. He is a member of the Clallam County Historical Society, the Port Angeles Fine Art Center, the Friends of Olympic National Park; the North Olympic Land Trust, the University of Washington Department of Urban Design & Planning Professionals Council, and many State and National Professional Associations. Patrick Doi4mie, Councilmember. Councilmember Downie received a Bachelor of Arts degree in Sociology and a minor in Urban Planning from California State University before moving to Port Angeles in 1974. He owns Royal Victorian Motel. a Baskin Robbins Ice Cream store. and has been involved with commercial real estate and senior housing development for 15 years. Mr. Downie has been the Program Coordinator for Catholic Community ServiceslVolunteer Services of Clallam County, involved in civic and community services including the President of Paint the To,,vn, former Chair of the Port Angeles Planning Commission. past Board President of the North Olympic Peninsula Visitor & Convention Bureau, and the Regional Transportation Planning Organization. Cherie Kidd. Councilunember. Ms. Kidd was elected to the City Council in 2008. Ms. Kidd is a native of Port Angeles where she attended Peninsula College. She has worked for several Fortune 500 companies such as First Financial Management; Sprint, KPMG and Egon Zehnder International. She has her own company including Success Seminars speaking tours and a mini -storage facility. Councilmember Kidd is an active member of the Port Angeles Business Association; the Port Angeles Regional Chamber of Commerce, Soroptimist international, and serves on the.boards of the Clallam County Historical Society, Olympic Medical Center Foundation, Salvation Army,.. and the Underground Preservation Foundation. Alax Mania, Councilmember. Councilmember Mania has studied sociology and criminology, is a playwright, performer, director and visual artist. Mr. Mania has served on boards of the Friends of the Port Angeles Fine Arts Center, the Port Angeles Community Players, and is founding board member of the Port Angles Arts Council. He has worked as a high-tech public relations agent, and as aVcommunications specialist for a company providing emergency support services to client companies such as Boeing, Paramount Pictures, and Pfizer. He is also a professionally trained banker. Brooke Nelson, Councilmember. Councilmember Nelson has worked as a Bank Manager, Corporate Trainer and is currently a full time Realtor and designated Ecobroker. She is an active member of Built Green of Clallam County, and serves on the board of directors for the North Peninsula Building Association as State Director. Ms_ Nelson represents Port Angeles on the Sheriff's Advisory Council and teaches the first-time homebuyers class on behalf of the Washington State Housing Finance Commission. Administrative Staff Kent Alyers, City .Manager. Mr. Myers has served as City Manager since December 2008. Prior to serving the City, Mr. Myers served as City Manager for Hot Springs, Arkansas; City Manager for Casa Grande, Arizona, and City Manager for Converse, Texas. Mr. Myers has a Bachelor of Science degree in criminal justice from the University of Texas at Arlington and a Masters Degree in Public Administration from Texas Christian University. Yvonne Ziomkowski, Director of Finance. Ms. Ziomkowski has served as the City's Finance Director and City Treasurer since June 1999. Prior to her current position, she served for ten years as the City's Accounting Manager/City Treasurer. Ms. Ziomkowski previously worked in financial analysis and cost accounting in South Africa and Texas. Her experience includes budget management, utility rate development, financial management, strategic planning, grant management, investment portfolio management, and public relations. Ms. Ziomkowski holds the designations of Professional Finance Officer from the Washington Finance Officers Association, and is a Certified Municipal Finance Administrator as designated by the Association of Public Treasurer's of the United 0 -28- P:%20391_D0W0391 2AH 05113110 • States and Canada. She currently serves on the Executive Board of Directors of the Washington Finance Officers Association, holding the position of Vice President. She is also the past President of the Washington Municipal Treasurers Association. Ms. Ziomkowski holds an M.A. in economics from the Technical University of Szczecin, Poland, Glenn A. Cutler, Director of Public (forks and Utilities, is a Registered Professional Engineer in the States of Washington and Georgia and has 38 years of experience in managing public works and utility functions for the United States Navy and the City of Port Angeles. Larr3- D. Dunbar, Depute Director for Porter Systems. He is responsible for the administrative and power management areas of the Electric System. Mr. Dunbar has been with the City since 2000, and has over 28 years of experience in electric utility management. Prior to that, Mr. Dunbar worked for the City of Richland, Washington; Energy Northwest. and the Snohomish County PUD. He holds a B.A. degree in Business Administration and an A.T.A. degree in Energy Management. Steve P. Sperr, Deputy Director of Engineering Senices,"City Engineer. Mr. Sperr is responsible for supervising the planning; design; and construction management of the City's utility projects. He joined the City's Public Works and Utilities Department in 1998. Before joining the City, he was employed for eight years as a civil engineer for public health services in the state of Washington. Tem- Dahlquist, Electrical Engineering Manager, has served in this position since 2006. Prior to joining the City, Mr. Dahlquist was employed for 15 years by Morrison-Maierle Engineers in Kalispell, Montana. Prior to that, Mr. Dahlquist worked for the Brinkman and Lenon Engineers, TSP Engineers, and Public Service Company of Colorado. .Mr. Dalquist holds a B.S. in Electric Engineering from the University of Denver, and is a Registered Professional Engineer in Washington and nine other states. • Labor Relations The City employs 257 full-time, part-time and temporary employees. Approximately 82% of the City employees are represented by four bargaining units and are employed under provisions of negotiated contracts. The City enters into written bargaining agreements with each bargaining organization. Agreements contain provisions on such matters as salaries, vacation, sick leave_ medical and dental insurance, working conditions, and grievance procedures. The following table describes the bargaining units representing various City employees. Bargaining Unit Number of Employees Contract Expiration Date AFSCME Local 1619 110 1.2,31/10 IBEW Local 997 20 12/31/10 L4FF Local 656 21 12/31/10 Teamster Local 589 (sworn officers) 31 12/31/10 Teamster Local 589 (support unit) 27 12/31/10 The City strives to be fair with all employees, consistent with all applicable State laws, to ensure equity, and promote labor relation policies mutually beneficial to management and employees. The City negotiates labor contracts through a management team. Pension Svstem Pensions for substantially all full-time and qualifi ing part-time City employees are provided through the Washineton State Department of Retirement System by either the Public Employees Retirement System ("PERS") or the Law Enforcement Officers and Firefighters System ("LEOFF"), both of which are cost-sharing. multiple -employer public employee retirement systems. Contributions to the systems by both employee and employer are based upon actuarial percentages established by the State of Washington. City officials have stated that all required contributions have been made to these plans and there is no unfunded liability on the part of the City. • -29- P:120391_D0'n20391 2AH 05/13/10 Risk Management0 The City of Port Angeles is a member of the Washington Cities Insurance Authority ("WCIA"). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 3934 RCW (Interlocal Cooperation Act), WCIA was established on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and'or jointly contracting for risk management services. WCIA has a total of 125 Members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one- year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership. Liability coverage is written on a per occurrence basis. The City is one of the large deductible cities with 5100,000. Coverage includes general, police professional, public officials' errors or omissions, stopgap, and general liability. Coverage limits include a S4 million per occurrence in the primary layer, $1 million per occurrence in the excess layer, $5 million per occurrence in the reinsured layer subject to annual aggregates related to public official liability of $1.5 million. and S10 million per occurrence in the second excess layer for a total limit of S20 million per occurrence. The second excess layer is insured by the purchase of reinsurance and insurance. The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the members' deductible for all perils other than flood and earthquake, and insured above tbar amount by the -purchase of reinsurance., Property insurance has a 55:000 deductible, crime and fidelitya S 10;000 deductible, large fleet rolling stock over S75,000 value has a deductible of S25,000. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, and insurance brokerage. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as determined by an outside, independent actuary. The assessment covers loss, loss adjustment, and administrative expenses. As outlined in the interlocal. WCIA retains the right to additionally assess the membership for any funding shortfall. An investment committee, using investment brokers, produces additional revenue by investment of WCIA's assets in financial instruments that comply with all. State guidelines. A Board of Directors governs WCIA, which is comprised of one designated representative from each member. The Board elects an Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCIA Executive Director reports to the Executive Committee and is responsible for conducting the day-to-day operations of the WCIA. All funds of the City participate in the self-insurance programs and make payments to the self-insurance fund based on estimates of the amounts needed to pay excess insurance and related risk management and service costs, prior and current year claims paid in the current year, and to maintain adequate reserves for catastrophic losses in a given year. As of December 31, 2009, the City had reserves of 51,129,329 in the Self -Insurance Fund. Reported claims liabilities are based on the requirements of GASB Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The City self -insures its workers' compensation liability and buys excess insurance to cover possible large liabilities. 0 -30- P:k20391_D0T2O391_2AH 0913110 • The City's insurance programs for workers' compensation, general liability, and health plan coverage (dental, medical and vision benefits) are managed by the Human Resources Office. The City also uses professional consultants from time to time for advice in financial aspects; legal matters, and claims administration. The City has passed an ordinance for the risk management program. The following is a summary of the City's coverage: The City is self-insured for workers' compensation and administers the program through a third - party administrator. The City meets all of the State requirements for funding and reserves and is periodically audited by the State Department of Labor and Industries for compliance. Employee health benefits are purchased through insured plans; i.e. medical, vision; dental prescription drugs, employee assistance program services, life insurance, and long-term disability coverage. General liability is insured through a municipal pool. Washington Cities Insurance Authority (\'CIA), with a deductible of S100,000 per incident. The City is protected up to $20 million. WCIA provides claims adjusting services,. assists with setting reserves, pre -defense claim review, counseling, training, and education. The City purchases property, boiler, machinery, and fidelity insurance through WCIA. The City's insured property value is 589,840,510 and large equipment value with insured at $5,138,555. The City maintains approximately 5125,000 for liability claims activity per year based on historical cost information plus $50,000 for legal services and adequate reserves in the event of unexpected claims. Liability. coverage includes general; automobile_ .police -professional, public employee errors and omissions, and other liabilities. Insurance coverage is up to $20 million for general liability. The • WCIA Board of Directors determines the limits and terms of coverage annually. 4. There were no reductions in insurance coverage from the prior year. • Financial Information Significant .4ccounting Policies. The financial statements of the City of Port Angeles have been prepared in conformity with generally accepted accounting principles ("GAAP") as applied to state and local governmental units. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The financial statements have incorporated all applicable GASB pronouncements as well as Financial Accounting Standards Board ("FASB") Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on accounting procedures issued on or before November 30, 1989, unless those pronouncements conflict with or contradict. GASB pronouncements. A. Reporting Entity. The City is a general-purpose government and provides police, fire, emergency medical service; water and electric distribution, water treatment, wastewater collection and treatment, sanitation, stormwater, solid waste collection, solid waste transfer station. street maintenance, planning and zoning, permits and inspection, park and recreation, customer service, and general administrative services. B_ As required by the generally accepted accounting principles, the financial statements present the City of Port Angeles as the primary government. The City has one discretely presented component unit, the Port Angeles Harbonvorks Public Development Authority, which is an independent legal entity that was established in 2008 to focus on re -development of the former Rayonier mill site. The PDA is exclusively responsible for its own debts, obligations and liabilities. _3 1- RQ0391_DOT�20391_2AH 05113/10 C. Government-111de and Fund Financial Statements. The City's basic financial statements include both government -wide financial statements (reporting the City as a whole) and fund financial statements (reporting the City's major funds). Both the government -wide and the fund financial statements categorize activities as either governmental or business -type. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. D. Fund Financial Statements. The fund financial statements display information at the individual fund level and are, in substance, very similar to the financial statements presented prior to the implementation of GASB 34. Each fund is accounted for by a separate set of self -balancing accounts that comprise its assets; liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Funds are classified and summarized as governmental, proprietary, and fiduciary. E. Proprietary Funds. Proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Proprietary fund operating statements present increases (revenues and gains) and decreases (expenses and losses) in net total assets. Proprietary fund measurement focus is based upon determination of net income, financial position, and cash flows. The proprietary fluids disclose changes in cash position by a separate statement that presents their operating, financing and investing cash flow activities. Proprietary funds distinguish operating revenue and expenses from non-operating items. Operating activities on the income statement represent user fees: payments to vendors and employees who provide services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations except those inconsistent with GASB pronouncements. 0 Enterprise Fronds. Enterprise funds account for utility operations that are self -supported through user charges. The utilities are financed and operated like a private business enterprise which requires periodic determination of revenues earned, expenses incurred, and net income for capital maintenance; public policy, management control, and accountability. Electric Frond (formerly the Light Fund) - accounts for revenues and expenses related to providing electric services to City customers. All activities necessary to provide such services, including administration, financing. capital improvements, and related debt service are accounted for in this fund. Basis of 4ccounting. The government -wide financial statements, the proprietary funds financial statements, and the fiduciary funds financial statements are presented on a fist! accrual basis of accounting with an economic resources measurement focus. An economic resources measurement focus concentrates on the net assets of an entity or fund. All transactions and events that affect the total economic resources (net assets) during the period are reported. An economic resources measurement focus is inextricably connected with full accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements, including time requirements, have been satisfied. Resources that are received before the eligibility requirements are met are considered to be advances from the provider and are recorded as deferred revenue by the City. Certain costs in the utility funds are deferred and expensed in future years as the utility rates recover these costs. Revenues of the utilities are based on service rates authorized by the City Council_ and are determined by cyclical monthly billings to customers. Amounts not earned at year-end are reported as deferred revenues. Earned revenues that have not been billed are accrued. • -32- P:120391_nOT20397 2AM 05113110 • The Budget Process. The City's budget process and procedures are consistent with the process and calendar as set forth under chapter 35A.33 RCW. Prior to October 1, City department directors present estimates of revenues and expenditures. The Finance Director, working in conjunction with the City Manager, Mayor and City Council, makes deletions, additions or modifications to the estimates and prepares a preliminary budget that is officially filed by November 1, when it is made available to the public. The Council is then required to set public hearings and adopt a final budget no later than December 31. Within thirty days of adoption, the final budget is available to the public. The Finance Director is authorized to transfer budgeted amounts between departments (within any fund/object classes within departments); however. any revisions that alter the total expenditures of a fund must be approved by the City Council. C Auditing of Citi- Finances. The State Auditor is required to examine the affairs of cities at least once every two years. The examination must include; among other things, the financial conditions and resources of the City, whether the laws and constitution of the state are being complied with, and the methods and accuracy of the accounts and reports of the City. Reports of the auditor's examinations are required to be filed in the office of the State Auditor and in the auditing department of the City. The City's last audit was for fiscal year 2009. See APPENDIX C— "THE CITY'S COMPREHENSIVE ANNUAL F iIN'ArNCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009." No significant discrepancies or irregularities were found. MI TIATIVE A\TD REFERENDUM Under the State Constitution, the voters of the State have the ability to initiate legislation and require the Legislature to refer legislation to the voters through the powers of initiative and referendum, respectively. The initiative power in Washington may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiative) and four percent (referenda) of the number of voters registered and- voting for the office- of: Grvernor.at. the preceding regular guben:ator_al. election:: Arry..law approved in this manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as other laws. In recent years there has been an increase in the number of initiatives and referenda filed in Washington, including state initiatives targeting property taxes imposed by local jurisdictions. The City cannot predict whether this trend will continue; whether any filed initiatives will receive the requisite signatures to be certified to the ballot, and whether such initiatives will be approved by the voters and, if challenged, upheld by the courts. Initiative 937 (Renewable Portfolio Standards). State Initiative 937 ("1-937), which was approved at the November 6, 2006, election, requires electric utilities that serve more than 25,000 customers to obtain at least (a) 3% of their electricity from renewable resources by January 1, 2012, and each year thereafter through December 31, 2015; (b) 9% of their electricity from renewable resources by January 1, 2016, and each year thereafter through December 31, 2019; and (c) 15% of their electricity from renewable resources by January 1, 2020, and each year thereafter. 1-937 also requires qualifying electric utilities to undertake various cost-effective energy conservation efforts. The Electric System has approximately 10,567 customers, and therefore, is not subject to I-937. Other Recent State Legislation. The State Legislature recently enacted legislation requiting the Washington State Governor to develop policy recommendations for achieving specific greenhouse gas reduction targets and requiring that power supply contracts of five years or more must comply with certain emission standards. Bonneville participated in formulating rules to implement the standards. There are also various federal energy legislation proposed that could set national standards for renewable energy generation, conservation efforts, and encourage greenhouse gas reduction. While the City's resources are primarily hydroelectric based, it is possible that legislation regarding greenhouse gas reduction could impact the City. -33- P:120391 DOMO391 2AH 05113/10 TAX N•L4,TTERS O In the opinion of Bond Counsel, interest on the 2010 Bonds is excludable from gross income for federal income tax purposes under existing law. Interest on the 2010 Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax and is not included in adjusted current earnings for purposes of the federal alternative minimum tax imposed on certain corporations. Federal income tax law contains a number of requirements that apply to the 2010 Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the use of proceeds of the 2010 Bonds and the facilities financed with proceeds of the 2010 Bonds and certain other matters. The City has covenanted to comply with all applicable requirements. Bond Counsel's opinion is subject to the condition that the City comply with the above -referenced covenants and, in addition, will rely on representations by the City and its advisors with respect to matters solely within the knowledge of the City and its advisors, respectively, which Bond Counsel has not independently verified. If the City fails to comply with such covenants or if the foregoing representations are determined to be inaccurate or incomplete, interest on the 2010 Bonds could be included in gross income for federal income tax purposes retroactively to the date of issuance of the 2010 Bonds, regardless of the date on which the event causing taxability occurs. Except as expressly stated above, Bond Counsel expresses no opinion regarding any other federal or state income tax consequences of acquiring, carrying, owning or disposing of the 2010 Bonds. Owners of the 2010 Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the 2010 Bonds, which may include original issue discount, original issue premium.. purchase at a market discount or at a premium, taxation upon sale, redemption or other disposition, and various withholding requirements. Prospective purchasers of the 2010 Bonds should be aware that ownership of the 2010 Bonds may result in.collateral federal income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the 2010 Bonds. Bond Counsel expresses no opinion regarding any collateral tax consequences. Prospective purchasers of the 2010 Bonds should consult their tax advisors regarding collateral federal income tax consequences. Pavments of interest on tax-exempt obligations, such as the 2010 Bonds, are in many cases required to be reported to the Internal Revenue Setvice (the "IRS"). Additionally, backup withholding may apply to any such payments made to any owner who is not an "exempt recipient" and who fails to provide certain identifying information. Individuals generally are not exempt recipients; whereas corporations and certain other entities generally are exempt recipients. Bond Counsel's opinion is not a guarantee of result and is not binding on the IRS; rather; the opinion represents Bond Counsel's legal judgment based on its review of existing law and in reliance on the representations made to Bond Counsel and the City's compliance with its covenants. The IRS has established an ongoing program to audit tax-exempt obligations to determine whether interest on such obligations is includable in gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS will commence an audit of the 2010 Bonds. Owners of the 2010 Bonds are advised that, if the IRS does audit the 2010 Bonds, under current IRS procedures, at least during the early stages of an audit, the IRS will treat the City as the taxpayer, and the owners of the 2010 Bonds may have limited rights to participate in the audit. The cornmencement of an audit could adversely affect the market value and liquidity of the 2010 Bonds until the audit is concluded, regardless of the ultimate outcome. Qualified Tax -Exempt Obligations The City has designated the 2010 Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. 0 -34- P920391_DOW0391_2AH 05113110 • LEGAL MATTERS Opinion of Counsel Legal matters incident to the authorization, issuance, and sale of the 2010 Bonds by the City are subject to the approving legal opinion of K&L Gates LLP; Seattle, Washington, Bond Counsel. A form of the legal opinion of Bond Counsel is attached hereto as Appendix B. Litigation There is no litigation pending or threatened in any court (either state or federal) to restrain or enjoin the issuance or delivery of the 2010 Bonds, or questioning the creation, organization, existence, or title to office of the City or the proceedings for the authorization, execution; sale and delivery of the 2010 Bonds. The City is a party to lawsuits in its normal course of business, but the City does not believe any of such litigation will have a significant adverse impact upon the financial condition of the City or the Electric System_ v Enforceability The provisions of the 2010 Bonds and the Bond Ordinance constitute contracts between the City and the owners of the 2010 Bonds, and such provisions are enforceable by the Registered Owner or owners in a court of competent jurisdiction in the State by mandamus or other appropriate remedy. subject to judicial discretion and the valid exercise of sovereign police power of the State and may be limited by laws affecting the rights of creditors. LLMITATIONS ON RE!-IEDIES • Any remedies available to the owners of the 2010 Bonds upon the occurrence of an Event of Default under the Bond Ordinance are in many respects dependent upon judicial actions that are in turn often subject to discretion and delay and could be both expensive and time-consuming to obtain. If the City fails to comply with its covenants under the Bond Ordinance or to pay principal of or interest on the 2010 Bonds, there can be no assurance that available remedies will be adequate to fully protect the interests of the owners of the 2010 Bonds. In addition to the limitations on remedies contained in the Bond Ordinance, the rights and obligations under the 2010 Bonds and the Bond Ordinance may be limited by and are subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, and to the exercise of judicial discretion in appropriate cases. The opinion to be delivered by K&L Gates LLP, as Bond Counsel when the 2010 Bonds are issued, will be subject to limitations regarding bankruptcy, insolvency and other laws relating to or affecting creditors' rights. A copy of the proposed form of opinion of Bond Counsel is set forth in Appendix B. CONFLICTS OF INTEREST Some or all of the fees of the Underwriter, the financial advisor to the City, and Bond Counsel are contingent upon the issuance and sale of the 2010 Bonds. From time to time, Bond Counsel serves as counsel to the Undenvriter in transactions unrelated to the issuance of the 2010 Bonds. FINANCIAL: ADVISOR The City has retained Piper Jaffray & Co., Seattle, Washington, as Financial Advisor to provide recommendations and other financial guidance to the City with respect to the preparation of the 2010 Bonds for sale. The Financial Advisor has not audited; authenticated, or otherwise verified the information set forth in this Oficial Statement with respect to appropriateness, accuracy, or completeness of disclosure of such information, and no guaranty, warranty, or other representation is made by the. Financial Advisor respecting accuracy and completeness of information or any • other matters related to such information. -35- P120391_D0T420391_2AH 05%13!10 OTHER MATTERS Continuing Disclosure Undertaking General. In accordance with Section (b)(5) of Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time (the "Rule"), the City has agreed in the Bond Ordinance to provide or cause to be provided to the Municipal Securities Rulemaking Board ("MSRB") in accordance with the Rule; the following annual financial information and operating data for the prior fiscal year (commencing in 2011 for the fiscal year ended December 31, 2010): (a) Annual financial statements of the Electric System, which statements may or may not be audited, showing end fund balances for the Electric Fund prepared in accordance with the Budget Accounting and Reporting System prescribed by the Washinmon State Auditor pursuant to RCW 43.09.200 (or any successor statute); and generally of the type included in this Official Statement for the 2010 Bonds under the headings "Electric Fund — Statement of Revenues, Expenses and other Changes in Fund Equity" and "Electric Fund — Historical Coverage from Operations"; (b) The outstanding long-term indebtedness of the Electric System, and any system of the City that provides power or capacity to the Electric System; (c) Electric System retail customers, energy sales, peak loads and revenues substantially in the form of the tables under the heading "Historical Customers and Energy Revenues" herein; (d) Electric System operating results and dept service coverage on gall outstanding 2010 Bonds substantially in the form of the table "Historical Operating Results" herein; and (d) The aggregate amount and percentage of total energy sold and of retail revenues provided by the Electric System's ten largest customers. Items (b) — (de) shall be required only to the extent that such information is not included in the annual financial statements provided pursuant to (a). Such annual information and operating data described above shall be provided on or before the expiration of nine months after the end of the City's fiscal year. The City's current fiscal year ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's Internet website or filed with the Commission. If not provided as part of the annual financial information discussed above, the City will provide to the MSRB the City's audited annual financial statement prepared in accordance with regulations prescribed by the State Auditor pursuant to RCW 43.09.200 (or any successor statutes) when and if available. Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the occurrence of any of the following events with respect to the 2010 Bonds, if such event is material: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; -36- PA20391DOT120391 2AH 05113110 0 0 • (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions or events affecting the tax-exempt status of the 2010 Bonds; (7) Modifications to rights of Bondholders; (3) Bond calls; (9) Defeasances,- (10) efeasances; (10) Release, substitution or sale of property securing the repayment of the 2010 Bonds; and (11) Rating changes. Solely for the purposes of disclosure, and not intending to modify this undertaking, the City advises that no property secures repayment of the 2010 Bonds. Notification upon Failure to Provide Financial Data. The City has agreed in the Bond Ordinance to provide or cause to be provided, in a timely manner, to the MSRB notice of its failure to provide the annual financial information described above in this section under the subheading "General" on or prior to the date set forth above in such subsection. V EM -VA; Format for Filings with the :11SRB. Until otherwise designated by the MSRB or the Securities and Exchange Commission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("ENEMA"), currently located at u7Nktiv.emma.msrb.org (which is not incorporated into this Official Statement by reference). All notices, financial • information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. Terminationl,•llodifrcation. The City's obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the 2010 Bonds. The continuing disclosure requirement, and any related provision, shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require continuing disclosure, are invalid, have been repealed retroactively or otherwise do not apply to the 2010 Bonds and (2) notifies the MSRB of such opinion and the cancellation of this requirement. The continuing disclosure requirement may be amended, without the consent of the 2010 Bond owners. with an opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any such amendment: 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 described above under the subheading "Material Events," and (ii) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Bond avner's Remedies Related to Continuing Disclosure undertaking. The right of any Bondowner or Beneficial Owner of 2010 Bonds to enforce provisions of the City's continuing disclosure undertaking is limited to a right to obtain specific enforcement of the City's obligations related thereto, and any failure by the City to comply with the provisions of the undertaking will not be an Event of Default with respect to the 2010 Bonds under the Bond Ordinance. For purposes of this section, 'Beneficial Owner" means any person who has the power, directly or • -37- P:120391_D0T120391_2AH 05113!10 indirectly, to vote or consent with respect to, or to dispose of ownership of. any 2010 Bonds, including persons holding 2010 Bonds through nominees or depositories. Compliance with E>•isting Undertakings. The City is currently in compliance with its continuing disclosure undertakings relating to prior bonds subject to the Rule. Underwriting The 2010 Bonds are being purchased by Seattle -Northwest Securities Corporation (the "Underwriter") from the City at a price of % of par plus accrued interest and will be re -offered at the aggregateprice of % of par, subject to the terms of a purchase contract between the City and the Underwriter (the "Purchase Contract"). The Purchase Contract provides that the Underwriter must purchase all of the 2010 Bonds if any are purchased and that the obligation to make such purchase is subject to certain terms and conditions set forth in the Purchase Contract, the approval of certain legal matters by counsel and certain other conditions. The initial public offering prices set forth on the cover hereof may be changed from time to time by the Underwriter. The Underwriter may offer and sell the 2010 Bonds into unit investment trusts or money market fluids, certain of which may be sponsored or managed by the Underwriter, at prices lower than the public offering prices stated on the cover hereof. Rating As noted on the cover page of this Official Statement, the City has received a rating for the 2010 Bonds from Moody's Investors Service (the "Rating Agency") of "_". The City applied for the rating, and certain information was supplied by the City to the Rating Agency to be considered in its rating of the 2010 Bonds. The rating reflects only the views of the Rating Agency, and an explanation of the significance of the rating may be obtained from the Rating-Aeency.: Therc is no- assurance. that the rating will be:retained for any given period.o0imr-or;that_the rating will not be revised downward or withdrawn entirely by the Rating Agency if, in its judgment, circumstances so warrant. Any such downward revision or withdrawal of the rating will be likely to have an adverse effect on the market price of the 2010 Bonds. The City has no obligation to take any action, other than file a material event notification, if the rating of the 2010 Bonds is changed, suspended or withdrawn. Official Statement Certificate At the time of delivery of the 2010 Bonds, one or more officials of the City will furnish a certificate stating that to the best of his or her knowledge, this Official Statement, as of its date and as of the date of delivery of the 2010 Bonds, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained herein, in light of the circumstances under which they were made, not misleading. Statements in this Official Statement, including matters of opinion, whether or not expressly so stated, are intended as such and not as representation of fact. This Official Statement is not to be construed as a contract or agreement between the City or the Underwriter and the purchasers of the 2010 Bonds. The preparation and distribution of this Official Statement has been authorized by the City. CITY OF PORT ANGELES, WASHINGTON 0 City Manager 0 -38- P:V0391_D0T`20391_2AH 05:13%10 • APPENDIX A DEMOGRAPHIC AND ECONOMIC INFOR_NZATION • • RT0391_00T20391_2AH 05113110 APPEN'DLY A DEMOGRAPHIC AND ECONOI 111C LNIFORAIATION The tables that follow provide economic and demographic information about the City and the surrounding area. Major Employers Within the City of Port Angeles Name of Emnlover Olympic Medical Center Westport Shipyard Peninsula College Clallam Countyy Port Aneeles School District City of Port Angeles U.S. Coast Guard Nippon Paper Industries Olympic National Park First Federal Savings and Loan (1) Includes full-time, part-time and seasonal employees. Source: The City and individual employers. As of April 2010 '' ..,•, " . - _ �Papulatioii� . • Historical, current and estimated population data for the City and Clallam County are the following: Number of Service or Product Employees (1) Medical services 1.042 Yacht Sales 550 Education 485 Government 484 Education 475 Government 257 Military 255 Recycled paper & pulp 220 Government 196 Bank 114 (1) Includes full-time, part-time and seasonal employees. Source: The City and individual employers. As of April 2010 '' ..,•, " . - _ �Papulatioii� . • Historical, current and estimated population data for the City and Clallam County are the following: Population City of Clallam Year Port Angeles County 2010 19,380 70,100 2009 19,260 69,500 2008 19,170 69,200 2007 19.010 68.500 2006 18,970 67,800 2005 18,640 66,800 Source: i[ashittgtort Stare Office of Financial Management intercensol population estimate 0 A-1 P:120391_D0P20391 2AH 0511300 • • • Income Data Comparative Personal Income (S in Thousands) (1) Latest available data shown. Source: U.S. Department of Commerce Bureau ofFcononiic-4nalt-sis Year Clallam County, 2008(l) 534,551 Washington State United States Year Clallam Countv Non -Metro Metropolitan Non -Metro Metropolitan 2008(l) S2,450,931 525,657,910 $255,019,651 S1,541,270,673 510,684,318,327 2007 2,388,872 24,513,336 246,494,506 1,474,863,152 10,404,972,848 2006 2,226,601 221791,492 229 231,484 1,393,518,592 91862 .997.048 2005 2,036,765 21,113,187 208,888,694 1,324,255,222 9,152,413,778 2004 1,977.101 20.481,837 201,896,841 1,271,927,794 8,65602,206 (1) Latest available data shown. Source: U.S. Department of Commerce Bureau ofFcononiic-4nalt-sis Year Clallam County, 2008(l) 534,551 2007 33.995 2006 31.959 2005 29.626 2004 29.314 Comparative Per Capita Personal Income Washington State Non -Metro Metropolitan $31,778 544,285 30,713 43,498 28,813 41,072 27,05 38.112 26,511 37,307 (l) Latest available data shown. Source: U.S. Department of Commerce Bureau of Economic Analysis Labor Force Data United States Non -Metro Metropolitan 531,098 S41,930 29,856 41,260 28,324 39.548 27,060 37.082 26,075 35;440 (1) Preliminary, as of April 2010. Source: if' shington State Employment Security Department A-2 P:'20391_DOT120397 2AH W.13!70 Employment Statistics Clallam County Annual Averages 2010(1) 2009 2008 2007 2006 Civilian Labor Force 30,670 30,300 30,000 29,750 29,450 Employed 27,220 27,390 27,940 28,050 27,740 Unemployed 3,450 2,910 2,050 1,700 1;710 % Unemployed 11..3% 9.6% 6.8% 5.7% 5.8% (1) Preliminary, as of April 2010. Source: if' shington State Employment Security Department A-2 P:'20391_DOT120397 2AH W.13!70 Nonagricultural Nage and Salary Workers (1) Clallam County Annual Averages Total Nonagricultural Wage & Salary Workers Natural Resources, Mining & Construction Manufacturing Wholesale & Retail Trade Transportation, Warehousing & Utilities Information and Financial Activities Other Services Government 2010(2) 2009 2008 2007 2006 22,620 22,750 23,470 23,900 23;850 1,490 1,540 1,900 2,160 2,300 1,590 1,520 1,440 1,620 1;610 3,920 3,710 3,930 4,060 4,170 490 470 510 500 510 1;050 1,060 1,120 1,170 1,170 6,970 7,300 7,580 7,590 7,500 71110 7,150 6,990 61800 6,590 (1) Totals may not add due to rounding. (2) Preliminary, through March 2010. Source: l ashington State Department of Emploiunent Security Other Data Ci"-- of Port Angeles Value of New Construction Source: Cit?- of Port Angeles A-3 RQ0391 DOi120391_2AH 05!13!10 0 Residential.. Commercial Total. Year Permits Permits Valuation 2009 405 164 S 42,236,495 2008 429 178 17,311;981 2007 596 214 40,190,831 2006 515 162 37,586,799 2005 596 185 48,527,021 Source: Cit?- of Port Angeles A-3 RQ0391 DOi120391_2AH 05!13!10 0 • City of Port Angeles and Clallam County Taxable Retail Sales Year City of Port Angeles Year City of Port Angeles Clallam County 2009 $ 304,191,311 5 888,109,138 2008 337,822,334 943,914,305 2007 374,263,660 1,063,474,587 2006 360,273,625 1,026,774,879 2005 324,240,481 958,031,755 2004 330,075,690 895,866,233 Source: TPashington State Department of Revenue • A'4 P120391 DOT,20391 2AH 05/13/10 Assessed Valuation Year City of Port Angeles Clallam County 2010 51,757276,293 58,243:327,771 2009 1,994,259,574 82587;834,547 2008 1,952,176,500 8,196,577,906 2007 1.595,493 428 7,477,997 284 2006 1,281,703,518 6,053,545,616 Source: Clallam Count)- Assessor's Office Clallam County • Number of Housing Units by Structure Type Mobile Homes, Total One Unit Two or More Unit Trailers, Housing Units Structures Structures Special Units 2005 2009 2005 2009 2005 2009 2005 2009 City of Port Angeles 8,828 9.173 6,506 6,762 2,009 2,066 313 345 Other Incorporated 3,985 4,814 2,109 2,540 1,012 1,353 864 921 Unincorporated 201-169 21,354 14;727 15,605 552 577 4.890 5.172 County Total 32.982 35;341 23,342 24,907 3:573 3,996 6.067 6,438 Source: iiashington State Office of Financial Management • A'4 P120391 DOT,20391 2AH 05/13/10 APPENDIX B FORM OF LEGAL OPINION PA20391_DOT20391 2AH 05/13110 a O 0 • L APPENDIX C THE CITY'S COAiPREHENSR'E ANNUAL FINANCLaL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009 RW391 DOT120391 2AH 05(13110 APPENDIX D BOOK -ENTRY SYSTEM P320391 DO1120391 2AH 05173'10 0 C7 • APPENDIX D BOOK -ENTRY SYSTEM The following information has been provided by The Depository Trust Company, Near Fork, Nei,, York ("DTC'). The Cif- makes no representation regarding the accuracy or completeness thereof. Beneficial Owners (as hereinafter defined) should therefore confirm the following with DTC or the Participants (as hereinafter defined). SAiMPLE OFFERING DOCnIENT LANGUAGE DESCRIBING BOOK -ENTRY -ONLY ISSUANCE (Prepared by DTC --bracketed material may apply only to certain issues) 1. The Depository Trust Company ("DTC"), New York NY, will act as securities depository for the securities (the "Securities"). The Securities will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any) issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount; and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of. 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, • corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book - entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ('`DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at w-v«v.dtcc.com and wwwAtc.org. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (`Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers-of' ransfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede • Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the D -I P:120391 D0i12039r 2AH 05173!70 actual Beneficial Owners of the Securities: DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be govemed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] [6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTCs receipt of fiords and corresponding detail information from Issuer or - Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name." and will be the responsibility of such Participant and not of DTC. Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Securities to [Tender/Remarketirta] Agent's DTC account.] 10. DTC. may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. Issuer may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. D-2 P:120391_D01120391 2AH 05111,10 0 APPENDIX E FORIM OF BOND ORDINANCE • • P:420391_DOT.20391 2m 05f13t10 CITY OF PORT ANGELES, WASHINGTON WATER AND WASTEWATER UTILITY REVENUE BONDS, 2010 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, combining the City's storm water utility with the City's water and wastewater utility; authorizing the issuance of water and wastewater utility revenue bonds of the City in the principal amount of $PAMT to finance the cost of improvements to the City's storm water utility and water and wastewater utility; establishing the date, form, terms, maturities and covenants of the bonds; and approving the sale of the bonds. Passed August 3, 2010 Prepared By: K&L GATES LLP Seattle, Washington TABLE OF CONTENTS Page Section1. Definitions................................................................................................................2 Section 2. Combining the Storm Water Utility with the Water and Wastewater Utility ........ 15 Section3. The Projects...........................................................................................................15 Section 4. Compliance with Parity Conditions.......................................................................15 Section 5. Authorization and Description of Bonds...............................................................16 Section 6. Registration, Exchange and Payments...................................................................17 Section 7. Redemption; Purchase of Bonds............................................................................20 Section8. Form of Bonds.......................................................................................................22 Section9. Execution of Bonds................................................................................................25 Section 10. Application of Bond Proceeds...............................................................................25 Section11. Revenue Fund........................................................................................................25 Section 12. Rate Stabilization Fund..........................................................................................26 Section13. Bond Account......................................................................................................:.26 Section 14. Adequacy of Revenues...........................................................................................28 Section 15. Covenants and Agreements....................................................................................28 Section16. Tax Exemption.......................................................................................................30 Section17. Defeasance.............................................................................................................31 Section 18. Issuance of Future Parity Bonds.............................................................................32 Section19. Sale of Bonds.........................................................................................................34 Section20. Official Statement..................................................................................................34 Section 21. Undertaking to Provide Ongoing Disclosure.........................................................35 Section22. Bond Insurance......................................................................................................37 Section 23. Supplements and Amendments..............................................................................37 Section 24. Lost or Destroyed Bonds........................................................................................38 Section25. Severability............................................................................................................38 Section26. Effective Date........................................................................................................38 -1- PA20391_DOT120391_2A4 07/20/10 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, combining the City's storm water utility with the City's water and wastewater utility; authorizing the issuance of water and wastewater utility revenue bonds of the City in the principal amount of $PAMT to finance the cost of improvements to the City's storm water utility and water and wastewater utility; establishing the date, form, terms, maturities and covenants 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 a storm water utility and a combined water and wastewater utility; and WHEREAS, it is in the best interest of the City and ratepayers of the storm water utility and the water and wastewater utility that certain improvements be made to facilities of each utility (as further described herein, the "Projects") and that revenue bonds in the principal amount of $ (the "Bonds") be issued to finance costs of the Projects; and WHEREAS, there are currently outstanding $3,525,000 principal amount of the City's Water and Wastewater Utility Revenue Bonds, 2003 (the "2003 Bonds"), and $7,445,000 principal amount of the City's Water and Wastewater Utility Revenue Refunding Bonds, 2009 (the "2009 Bonds"); and WHEREAS, the ordinances authorizing the 2003 Bonds and the 2009 Bonds permit the City to combine the City's storm water utility with the water and wastewater utility for borrowing purposes, and the City Council of the City (the "Council") has determined that it is in the best interest of the City and ratepayers of the utilities to combine the utilities; and WHEREAS, the ordinances authorizing the 2003 Bonds and the 2009 Bonds permit the City to issue additional water and wastewater utility revenue bonds on a parity with the 2003 Bonds and the 2009 Bonds if certain conditions are met; and WHEREAS, after due consideration it appears to the Council that those parity conditions can be met and that the City may issue the Bonds on a parity with the 2003 Bonds and 2009 Bonds; and WHEREAS, the City has received the offer of Seattle -Northwest Securities Corporation (the "Underwriter") to purchase the Bonds, and it is in the best interests of the City and ratepayers of the System that the City accept that offer and sell the Bonds to the Underwriter on the terms set forth in its offer and in this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions. As used in this ordinance the following words and phrases have the following meanings: "Annual Debt Service," for so long as any 2003 Bonds remain outstanding, for any Fiscal Year or calendar year means the sum of: (a) the interest due in such year on all outstanding Parity Bonds excluding, however, interest to be paid from the proceeds of Parity Bonds, (b) the principal of all outstanding Serial Bonds due in such year, and (c) the Sinking Fund Requirement, if any, for such year. If the interest rate on any such bonds is other than a fixed rate, the rate applicable at the time of the computation shall be used; provided, however, that so long as the 2009 Bonds are outstanding the City may issue variable rate obligations payable from Gross Revenue only as provided in Section 18(d) of this ordinance. From and after the date when no 2003 Bonds remain outstanding, "Annual Debt Service," for any Fiscal Year or calendar year means the sum of: (a) the interest due in such year on all outstanding Parity Bonds excluding, however, interest to be paid from the proceeds of Parity Bonds, (b) the principal of all outstanding Serial Bonds due in such year, and (c) the Sinking Fund Requirement, if any, for such year. For purposes of satisfying the rate covenant in Section 15(a) and the Future Parity Bond test in Section 18(a), Annual Debt Service for any Fiscal Year or calendar year shall exclude any Debt Service Offsets. If the interest rate on any such bonds is other than a fixed rate, the rate applicable at the time of the computation shall be used; provided, however, that so long as the 2009 Bonds are outstanding the City may issue variable rate obligations payable from Gross Revenue only as provided in Section 18(d) of this ordinance. From and after such time as no 2003 Bonds or 2009 Bonds remain outstanding, if the interest rate on any Parity Bonds is other than a fixed rate, the rate applicable at the time of computation shall be used unless such rate is less than an interest rate equal to the yield to maturity equal to the higher of (i) the average of the SIFMA Municipal Swap Index over the 60 month period immediately preceding the date of computation, or (ii) the average of the SIFMA Municipal Swap Index over the 12 month period immediately preceding the date of computation, as determined within ten days prior to the date of computation or, if such computation is being made in connection with the certificate required for the issuance of Future Parity Bonds, then within ten days prior to the date of such certificate. "Assessments" means assessments (including interest and penalties) levied in any utility local improvement district of the City for the acquisition or construction of additions and improvements to and extension of the System, if such assessments are pledged to be paid into the Bond Account. -2- PA20391 DUR20391_2M 07/20/10 "Assured Guaranty" means Assured Guaranty Corp., or any successor thereto or assignee thereof, as provider of a municipal bond insurance policy for the 2009 Bonds. "Average Annual Debt Service" means the amount determined by dividing (a) the sum of all interest and principal to be paid on all Parity Bonds from the date of determination to the last maturity date of such Parity Bonds, by (b) the number of Fiscal Years or calendar years from and including the Fiscal Year or calendar year in which the determination is made to the last Fiscal Year or calendar year in which any of such Parity Bonds will be outstanding. "Bond Account" means the 1994 Water and Wastewater Utility Revenue Bond Fund created by Section 15 of Ordinance No. 2843 and continued pursuant to Section 13 of this ordinance. ["Bond Insurance Policy" means the financial guaranty insurance policy issued by the Insurer to guaranty the payment when due of the principal of and interest on the Bonds as provided therein.] "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of registration of the Bonds. "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, effecting transfer of ownership of the Bonds, and paying the principal of, premium, if any, and interest on the Bonds. "Bonds" mean the City's Water and Wastewater Utility Revenue Bonds, 2010, issued in the aggregate principal amount of $PAMT pursuant to this ordinance. `'City" means the City of Port Angeles, a municipal 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. "Commission" means the United States Securities and Exchange Commission. "Costs of Maintenance and Operation" means all necessary operating expenses, current maintenance expenses, expenses of reasonable upkeep and repairs, and insurance and administrative expenses of the System, but excludes depreciation, payments for debt service or into reserve accounts and costs of capital additions to or replacements of the System, taxation by the City or payments in lieu of taxes. "Council" means the Port Angeles City Council, as the general legislative body of the City as the same is duly and regularly constituted from time to time. "'Debt Service Account" means the account of that name created in the Bond Account by Section 15 of Ordinance No. 2843 and continued pursuant to Section 13 of this ordinance. -3- PA20391 DO1120391 2A4 07/20/10 "Debt Service Offset" means receipts of the City that are not included in Gross Revenue and that are legally available to pay debt service on Parity Bonds, including without limitation federal interest subsidy payments, designated as such by the City. "DTC" means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as initial depository for the Bonds or any successor substitute depository for the Bonds. "Finance Director" means the duly appointed and acting Finance Director of the City or the successor to the duties of that office. "Fiscal Year" means the fiscal year used by the City at any time. At the time of the passage of this ordinance, the Fiscal Year is the twelve-month period beginning January 1 of each year and ending December 31 of each year. "Future Parity Bonds" mean any revenue bonds, revenue warrants or other revenue obligations that may be issued in the future with a lien on money in the Revenue Fund to pay and secure the payment of the principal thereof and interest thereon equal to the lien created on the money in such Fund to pay and secure the payment of the principal of and interest on the 2003 Bonds, the 2009 Bonds, and the Bonds. "Government Obligations" means those obligations now or hereafter defined as such in Chapter 39.53 RCW, as this chapter may be hereafter amended or restated. "Gross Revenue" means all earnings, revenue and money, except Assessments, received by the City from or on account of the operation of the System, including proceeds from the sale, lease or other disposition of any of the properties or facilities of the System, and the income from investments of money in the Revenue Fund and any bond fund or from any other investment thereof except the income from investments irrevocably pledged to the payment of revenue bonds pursuant to a plan of retirement or refunding. The term "Gross Revenue" does not include grants or bond proceeds, but does include federal or state reimbursements of operating expenses to the extent such expenses are included as "Costs of Maintenance and Operation." ["Insurer" means , 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. "MBIA" means the MBIA Insurance Corporation, a stock insurance company incorporated under the laws of the State of New York, or any successor thereto, as provider of a policy of municipal bond insurance for the 2003 Bonds (which policy is currently administered and reinsured by National Public Finance Guarantee Corporation). "Moody's" means Moody's Investors Service, a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, or its successor. -4- PA20391_D0TR20391_2A4 07/20110 "MSRB" means the Municipal Securities Rulemaking Board or any successor to its functions. Bonds. "Net Revenue" means the Gross Revenue less the Costs of Maintenance and Operation. "Parity Bunds" means the 2003 Bonds, the 2409 Bonds, the Bonds and. any Future Parity "Permitted Investments"' means: (i) any Washington State -administered investment pool in which the City is statutorily permitted or required to invest City funds; and (ii) so long as any of the 2003 Bonds remain outstanding, any of the following investments, if permitted under the laws of the State of Washington as amended from time to time and, so long as the Bonds remain outstanding, if also permitted under section (ii) of this definition of `'Permitted. Investments": A. Direct obligations of the United States of America (including obligations issued or held in book -entry form on the boobs of the Department of the Treasury, and. CATS and TGRS) or obligations the principal of and interest on which are unconditionally guaranteed by the United States of America. B. Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by any of the following federal agencies and provided such obligations are backed. by the full faith and credit of the United States of America (stripped securities are only permitted if they have been stripped by the agency itself): 1. U.S. Export -Import Bank: direct obligations or fully guaranteed certificates of beneficial ownership; ownership, 2. Farmers Home Administration: certificates of beneficial 3. Federal. Financing Bank; 4. Federal Housing Administration. Debentures; S. General Services Administration: participation certificates; 6. Government National Mortgage Association (GNMA): GNMA-guaranteed mortgage -hacked bonds and GNMA-guaranteed pass-through obligations; financing; and 7. U.S. Maritime Administration: guaranteed Title XI -5- 8:120391 flQRMD1 2A4 07/20/14 8. U.S. Department of Housing and. Urban Development: project notes; local authority bonds; U.S. government -guaranteed new communities debentures; U.S. government -guaranteed public housing notes and bonds. C. Bonds, debentures, notes or other evidence of indebtedness issued. or guaranteed by any of the following non -full faith and credit U.S. government agencies (stripped securities are only permitted if they have been stripped by the agency itself): 1. Federal Home Loan Bank System: senior debt obligations; 2. Federal. Home Loan Mortgage Corporation: participation. certificates and senior debt obligations; 3. Federal National Mortgage Association: mortgage-backed securities and senior debt obligations; 4. Student Loan Marketing Association: senior debt obligations; 5. Resolution. Funding Corp. (REFCORP) obligations; and 5.. Farm Credit Systems: consolidated systemwide bonds and notes. D. Money market funds registered under the Federal Investment Company Act of 1940, whose shares are registered under the Federal Securities Act of 1933, and having a rating by S&P of AAAm-G, AAAm or AAm. E. Certificates of deposit secured at all gimes by collateral described in (A) and/or (B) above. Such certificates must be issued by commercial banks, savings and loan associations or mutual savings banks. The collateral must be held by a third party and the bondholders must have a perfected first security interest in the collateral. F. Certificates of deposit, savings accounts, deposit accounts or money market deposits that are fully insured by FDIC, including BIF and SAIF. G. Investment Agreements, including GIC's, acceptable to MBIA. H. Commercial paper rated, at the time of purchaser, "Prime -1" by Moody's and "A-1" or better by S&P. I. Bonds or notes issued by any state or municipality rated by Moody's and S&P in one of the two highest rating categories assigned by such agencies. J. Federal funds or bankers acceptances with a maximum term of one year of any bank that has an unsecured, uninsured and unguaranteed obligation rating of "Prime -1." or "AY or better by Moody's and "A" or better by S&P. -6- P:120391_DOM0391_2A4 97120/10 K. Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm (seller/borrower) to a municipal entity (buyer/lender), and the transfer of cash from a municipal entity to the dealer bank or securities firm with an agreement that the dealer bank or securities firm will repay the cash plus a yield to the municipal entity in exchange for the securities at a specified date. Repurchase Agreements must satisfy the following criteria or be approved by MBIA and Assured Guaranty, so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding: 1. Repos must be between the municipal entity and a dealer bank or securities firm. a. Primary dealers on the Federal Reserve reporting dealer list that are rated A or better by S&P and Moody's, or b. Banks rated "A" or above by S&P and Moody's. 2. The written repo contract must include the following: a. Securities that are acceptable for transfer are: (1) Direct U.S. governments, or (2) Federal agencies backed by the full faith and credit of the U.S. government (and FNMA & FHLMC). b. The term of the repo may be up to thirty (30) days. C. The collateral must be delivered to the municipal entity, trustee (if trustee is not supplying the collateral) or third party acting as agent for the trustee (if the trustee is supplying the collateral) before or simultaneously with payment (perfection by possession of certificated securities). d. The securities must be valued weekly, marked -to -market at current market price plus accrued interest. The value of collateral must be equal to 104% of the amount of cash transferred by the municipal entity to the dealer bank or securities firm under the repo plus accrued interest. If the value of securities held as collateral slips below 104% of the value of the cash transferred by municipality, then additional cash and/or acceptable securities must be transferred. If, however, the securities used as collateral are FNMA or FHLMC, then the value of collateral must equal 105%. 3. A legal opinion must be delivered to the municipal entity to the effect that the repo meets guidelines under state law for legal investment of public funds. (iii) So long as the Bonds remain outstanding, any of the following investments, if permitted under the laws of the State of Washington as amended from time to time: A. (a) Cash (fully insured by the Federal Deposit Insurance Corporation), (b) direct obligations (other than an obligation subject to variation in principal -7- RU0391 DOP20391 2M 07/20/10 repayment) of the United States of America ("U.S. Treasury Obligations"), (c) obligations fully and unconditionally guaranteed as to timely payment of principal and interest by the United States of America, (d) obligations fully and unconditionally guaranteed as to timely payment of principal and interest by any agency or instrumentality of the United States of America when such obligations are backed by the full faith and credit of the United States of America, or (e) evidences of ownership of proportionate interests in future interest and principal payments on obligations described above held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor and the underlying government obligations are not available to any person claiming through the custodian or to whom the custodian may be obligated. The above referenced obligations may constitute defeasance 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). B. Federal Housing Administration debentures. C. The following obligations of government-sponsored agencies that are not backed by the full faith and credit of the United States of America: 1. Federal Home Loan Mortgage Corporation (FHLMC) senior debt obligations and Participation certificates (excluded are stripped mortgage securities that are purchased at prices exceeding their principal amounts) 2. Farm Credit System (formerly Federal Land Banks, Federal Intermediate Credit Banks and Banks for Cooperatives) consolidated system -wide bonds and notes 3. Federal Home Loan Banks (FHL Banks) consolidated debt obligations 4. Federal National Mortgage Association (FNMA) senior debt obligations and mortgage-backed securities (excluded are stripped mortgage securities which are purchased at prices exceeding their principal amounts) D. Unsecured certificates of deposit, time deposits, and bankers' acceptances (having maturities of not more than three hundred sixty-five (365) days) of any bank the short-term obligations of which are rated "A-1+" or better by S&P and "Prime -1" by Moody's. E. Deposits the aggregate amount of which are fully insured by the Federal Deposit Insurance Corporation, in banks that have capital and surplus of at least $15 million. -8- PA20391 D01120391 2A4 07/20/10 F. Commercial paper (having original maturities of not more than two hundred seventy (2 70) days) rated "A-1+" by S&P and "Prime -1" by Moody's. G. Money market funds rated "Aam" or "AAm-G" by S&P, or better and if rated by Moody's rated "Aa2" or better. H. "State Obligations," which means: 1. Direct general obligations of any state of the United States of America or any subdivision or agency thereof to which is pledged the full faith and credit of a state the unsecured general obligation debt of which is rated at least "A3" by Moody's and at least "A-" by S&P, or any obligation fully and unconditionally guaranteed by any state, subdivision or agency whose unsecured general obligation debt is so rated. 2. Direct general short-term obligations of any state agency or subdivision or agency thereof described in (a) above and rated "A-1+" by S&P and "MIG -1" by Moody's. 3. Special Revenue Bonds (as defined in the United States Bankruptcy Code) of any state or state agency described in (b) above and rated "AA-" or better by S&P and "Aa3" or better by Moody's. 1. Pre -refunded municipal obligations rated "AAA" by S&P and "Aaa" by Moody's meeting the following requirements: 1. the municipal obligations are (1) not subject to redemption prior to maturity or (2) the trustee for the municipal obligations has been given irrevocable instructions concerning their call and redemption and the City of the municipal obligations has covenanted not to redeem such municipal obligations other than as set forth in such instructions; 2. the municipal obligations are secured by cash or U.S. Treasury Obligations which may be applied only to payment of the principal of, interest and premium on such municipal obligations; 3. the principal of and interest on the U.S. Treasury Obligations (plus any cash in the escrow) has been verified by the report of independent certified public accountants to be sufficient to pay in full all principal of, interest, and premium, if any, due and to become due on the municipal obligations ("Verification Report"); 4. the cash or U.S. Treasury Obligations serving as security for the municipal obligations are held by an escrow agent or trustee in trust for owners of the municipal obligations; 5. no substitution of a U.S. Treasury Obligation shall be permitted except with another U.S. Treasury Obligation and upon delivery of a new Verification Report; and -9- PA20391_00M0391_2m 07/20/10 6. the cash or U.S. Treasury Obligations are not available to satisfy any other claims, including those by or against the trustee or escrow agent. J. Repurchase agreements: with (1) any domestic bank, or domestic branch of a foreign bank, the long term debt of which is rated at least "A-" by S&P and "A3" Moody's; or (2) any broker-dealer with "retail customers" or a related affiliate thereof which broker-dealer has, or the parent company (which guarantees the provider) of which has, long- term debt rated at least "A-" by S&P and "A3" by Moody's, which broker-dealer falls under the jurisdiction of the Securities Investors Protection Corporation; or (3) any other entity rated at least "A-" by S&P and "A3" Moody's and acceptable to MBIA and Assured Guaranty, so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding (each an "Eligible Provider"), provided that: 1. (i) permitted collateral shall include U.S. Treasury j Obligations, or senior debt obligations of GNMA, FNMA or FHLMC (no collateralized mortgage obligations shall be permitted for these providers), and (ii) collateral levels must be at least 102% of the total principal when the collateral type is U.S. Treasury Obligations, 103% of the total principal when the collateral type is GNMA's and 104% of the total principal when the collateral type is FNMA and FHLMC ("Eligible Collateral"); 2. the trustee or a third party acting solely as agent therefore or for the City (the "Custodian") has possession of the collateral or the collateral has been transferred to the Custodian in accordance with applicable state and federal laws (other than by means of entries on the transferor's books) and such collateral shall be marked to market; 3. the collateral shall be marked to market on a daily basis and the provider or Custodian shall send monthly reports to the trustee, the City, MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding), setting forth the type of collateral, the collateral percentage required for that collateral type, the market value of the collateral on the valuation date and the name of the Custodian holding the collateral; 4. the repurchase agreement (or guaranty, if applicable) may not be assigned or amended without the prior written consent of MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding); 5. the repurchase agreement shall state and an opinion of counsel shall be rendered at the time such collateral is delivered that the Custodian has a perfected first priority security interest in the collateral, any substituted collateral and all proceeds thereof, 6. the repurchase agreement shall provide that if during its term the provider's rating by either Moody's or S&P is withdrawn or suspended or falls below "A" by S&P or "A3" by Moody's, as appropriate, the provider must, notify the City, the trustee and MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding) within five (5) days of receipt of such notice. Within ten (10) days of receipt of such notice, the provider shall either: (i) provide a written guarantee acceptable to -10- PA20391 D0T120391 2A4 07/20/10 MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding), (ii) post Eligible Collateral, or (iii) assign the agreement to an Eligible Provider. If the provider does not perform a remedy within ten (10) business days, the provider shall, at the direction of the trustee (who shall give such direction if so directed by MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding)) repurchase all collateral and terminate the repurchase agreement, with no penalty or premium to the City or the trustee. K. Investment agreements: with a domestic or foreign bank or corporation the long-term debt of which, or, in the case of a guaranteed corporation the long- term debt, or, in the case of a monoline financial guaranty insurance company, claims paying ability, of the guarantor is rated at least "AA-" by S&P and "Aa3" by Moody's, and acceptable to MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding) (each an "Eligible Provider"); provided that: 1. interest payments are to be made to the trustee at times and in amounts as necessary to pay debt service (or, if the investment agreement is for the construction fund, construction draws) on the Bonds; 2. the invested funds are available for withdrawal without penalty or premium, at any time upon not more than seven (7) days' prior notice; the City and the trustee hereby agree to give or cause to be given notice in accordance with the terms of the investment agreement so as to receive funds thereunder with no penalty or premium paid; 3. the provider shall send monthly reports to the trustee, the City, MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding) setting forth the balance the City or trustee has invested with the provider and the amounts and dates of interest accrued and paid by the provider; 4. the investment agreement shall state that is an unconditional and general obligation of the provider, and is not subordinated to any other obligation of, the provider thereof or, if the provider is a bank, the agreement or the opinion of counsel shall state that the obligation of the provider to make payments thereunder ranks pari passu with the obligations of the provider to its other depositors and its other unsecured and unsubordinated creditors; 5. the investment agreement (or guaranty, if applicable) may not be assigned or amended without the prior written consent of MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding); 6. the City, the trustee, MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding) shall receive an opinion of domestic counsel to the provider that such investment agreement is legal, valid, binding and enforceable against the provider in accordance with its terms; 7. the City, the trustee, MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding) shall receive an - 11- P:Q0391 DOT120391_2A4 07/20/10 opinion of foreign counsel to the provider (if applicable) that (i) the investment agreement has been duly authorized, executed and delivered by the provider and constitutes the legal, valid and binding obligation of the provider, enforceable against the provider in accordance with its terms, (b) the choice of law of the state set forth in the investment agreement is valid under that country's laws and a court in such country would uphold such choice of law, and (c) any judgment rendered by a court in the United States would be recognized and enforceable in such country; 8. the investment agreement shall provide that if during its term: 1. the provider's rating by either S&P or Moody's falls below `'AA-" or "Aa3," the provider shall, at its option, within ten (10) days of receipt of publication of such downgrade, either (i) provide a written guarantee acceptable to MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding), (ii) post Eligible Collateral with the City, the trustee or a third party acting solely as agent therefore (the "Custodian") free and clear of any third party liens or claims, or (iii) assign the agreement to an Eligible Provider, or (iv) repay the principal of and accrued but unpaid interest on the investment; 2. the provider's rating by either S&P or Moody's is withdrawn or suspended or falls below "A-" or "A3," the provider must, at the direction of the City or the trustee (who shall give such direction if so directed by MBIA and Assured Guaranty, so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding), within ten (10) days of receipt of such direction, repay the principal of and accrued but unpaid interest on the investment, in either case with no penalty or premium to the City or trustee. 9. if the provider is required to collateralize, permitted collateral shall include U.S. Treasury Obligations, or senior debt obligations of GNMA, FNMA or FHLMC (no collateralized mortgage obligations shall be permitted for these providers) and collateral levels must be 102% of the total principal when the collateral type is U.S. Treasury Obligations, 103% of the total principal when the collateral type is GNMA's and 104% of the total principal when the collateral type is FNMA and FHLMC ("Eligible Collateral"). In addition, the collateral shall be marked to market on a daily basis and the provider or Custodian shall send monthly reports to the trustee, the City, MBIA and Assured Guaranty (so long as the 2003 Bonds and the 2009 Bonds, respectively, remain outstanding) setting forth the type of collateral, the collateral percentage required for that collateral type, the market value of the collateral on the valuation date and the name of the Custodian holding the collateral; 10. the investment agreement shall state and an opinion of counsel shall be rendered, if collateral is required to be pledged by the provider under the terms of the investment agreement, at the time such collateral is delivered, that the Custodian has a perfected first priority security interest in the collateral, any substituted collateral and all proceeds thereof; -12- R\20391 _DOT120391 _2M . 07/20/10 11. the investment agreement must provide that if during its term: (i) the provider shall default in its payment obligations, the provider's obligations under the investment agreement shall, at the direction of the City or the trustee (who shall give such direction if so directed by MBIA and Assured Guaranty, so long as the 2003 Bonds and. the 2009 Bonds, respectively, remain outstanding), be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the City or trustee, as appropriate, and (ii) the provider shall become insolvent, not pay its debts as they become due, be declared or petition to be declared bankrupt, etc. ("event of insolvency"), the provider's obligations shall automatically be accelerated and amounts invested and accrued but unpaid interest thereon shall be repaid to the City or trustee, as appropriate. "`Professional Utility Consultant" means the independent person(s) or firm(s) selected by the City having a favorable reputation for skill and experience with water, wastewater and storm water systems of comparable size and character to the System in such areas as are relevant to the purposes for which they are retained. "'Projects" means those improvements to the System authorized by Section 3 of this ordinance. "Projects Account" means the special account authorized to be created in the office of the Finance Director pursuant to Section 10 of this ordinance. "Qualified. Insurance" means (i) so long as any 2003 Bonds remain outstanding, any unconditional 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 service corporation is rated in one of the two highest rating categories by Moody's Investors Service, Inc. or any other rating agency then maintaining a rating on the Bonds, provided, that, as of the time of issuance of such policy or surety bond, such insurance company or companies maintain a policy owner's surplus in excess of $500,000,000; and (ii) from and after such time as no 2003 Bonds remain outstanding, any unconditional 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 service corporation, as of the time of issuance of such policy or surety bond, is then rated in one of the two highest rating categories by Moody's Investors Service, Inc. or any other rating agency then maintaining a rating on the Bonds. "Qualified Letter of Credit" means any irrevocable letter of credit issued by a bank for the account of the City and for the benefit of the owners of Parity Bonds, provided that such bank. maintains an office, agency or branch in the United States, and provided further, that, as of the time of issuance of such letter of credit, such bank is currently rated in one of the two highest. rating categories by either Moody's Investors Service, Inc. or any other rating agency then maintaining a rating on the Bonds. "Rate Stabilization. Fund" means the fund of that name created pursuant to Section 13 of Ordinance No. 2843 and continued pursuant to Section 1.2 of this ordinance. -13- PA20391_DOT5203912M 07120110 "Registered Owner" means the person named as the registered owner of a. Bond in the Bond Register. .For so long as the Bonds are held in book -entry only form, DTC will be deemed to be the sole Registered Owner. "'Reserve Account" means the account of that name in the Bond. Account created pursuant to Ordinance No. 2843 and continued pursuant to Section 13 of this ordinance. "Reserve Account Requirement" means, with respect to the Bonds or Future Parity Bonds, an amount equal to the least of (a) 1.25% of Average Annual. Debt Service on all outstanding Parity Bonds, (b) 1.0% of the stated principal amount of all outstanding Parity Bonds, or (c) maximum Annual Debt Service on all outstanding Parity Bonds. "Revenue Fund" means the special fund of the City known as the "City of Port Angeles Water and Wastewater Utility Revenue Fund" created in the office of the finance Director pursuant to Section 2 of Ordinance No. 2843 and continued pursuant to Section 11 of this ordinance. "Rule" means the Commission's Rule 1.5c2-12 under the Securities Exchange Act of 1934,.as the same may be amended from time to time. "S&P" means Standard & Poor's Ratings Services, or its successor. "'Serial Bonds" means Parity Bonds other than. Terrn. Bonds. "Sinking Fund Requirement" means, for any Fiscal Year or calendar year, the principal amount of Term Bonds required to be purchased, redeemed or paid at maturity in such year as established by the ordinance of the City authorizing the issuance of such Term Bonds. "State Loans" means Public Works Trust Fund loans, Drinking Water Revolving Fund loans, and similar loans to the City for purposes related to the System that are administered by the Public Works Board, Department of Commerce, or other successor or similar state agencies, and are secured by a pledge of Gross Revenue. "System" means the City's combined water supply and distribution utility, sanitary sewage collection and wastewater treatment utility, and storm water utility as the same now exists and as it may hereafter be added to, improved and extended for as long as any of the Bonds are outstanding. "Tax Certificate" means the certificate with respect to federal tax matters relating to the Bonds authorized to be executed by the Finance Director pursuant to the provisions of Section 16 of this ordinance. "Term Bonds" means Parity Bonds of any principal maturity that are subject to mandatory redemption and for which mandatory sinking field payments are required, including the Bonds identified as such in. Section 7(b) of this ordinance. "Underwriter" means Seattle -Northwest Securities Corporation. -1.4= P:Vossi oanzoasi_zna 07120/10 "2003 Bonds" means the City's Water and Wastewater Utility Revenue Refunding Bonds, 2003, issued in the original principal amount of $4,220,000 under date of November 18, 2003, pursuant to Ordinance No. 31.48 of the City and currently outstanding in the principal amount of $3,525,000. "2009 Bonds" means the City's Water and Wastewater Utility Revenue Refunding Bonds, 2009, issued in the original principal amount of $7,590,000 under date of September 29, 2009, pursuant to Ordinance No. 3375 of the City and currently outstanding in the principal amount of $7,445,000. Words of the masculine gender are deemed and construed to include correlative words of the feminine and neuter genders. Words imparting the singular number include the plural numbers and vice versa unless the context indicates otherwise. 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 do not define or limit the provisions hereof Section 2. Combining the Storm. Water Utility with the Water and Wastewater Ute. The City's storm water utility and water and wastewater utility are hereby combined for borrowing purposes, as permitted by Ordinance Nos. 3148 and 3375 authorizing the issuance of the 2003 Bonds and the 2009 Bonds. The "System" as defined in such ordinances and in this ordinance shall be deemed to include the storm water utility and the water and wastewater utility as they now exist and as they may hereafter be added to, improved or extended. Section 3. The Projects. The Council hereby approves the acquisition, development and construction of the improvements to the System included or to be included in the City's Capital Facilities Plan, including but not limited to advanced metering infrastructure, water pipeline improvements, sewer pipeline improvements wastewater Supervisory Control and Data Acquisition improvements, a septage receiving station, wastewater treatment plant. improvements, and stormwater system improvements (the "Projects"). The estimated cost of the Projects is $5,396,000. In undertaking the Projects, the City will acquire and install all equipment and appurtenances necessary for their proper operation and will 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 are subject to those 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 System improvements, approved by the Council, that are now or may hereafter be included in the City's Capital. Facilities Plan. Section 4. Compliance with. Parity Conditions. Ordinance Nos. 3148 and 3375 that authorized the issuance of the 2003 Bonds and the 2009 Bonds provide that the City may issue Future Parity Bonds upon compliance with certain conditions. The Council hereby finds, as required by those provisions of Ordinance Nos. 3148 and 3375, as follows: 1.5- RV0391 p011263913 2A4 07120/10 First, that the Bonds are being issued for the purpose of acquiring, constructing and installing additions and improvements to and extensions of, acquiring necessary equipment for, or making necessary replacements or repairs and capital improvements to the System; Second, that at the time of the adoption of this ordinance and at the time of the issuance of the Bonds there is not nor will there be any deficiency in the Bond. Account or the Reserve Account; Third, this ordinance provides that (i) the principal of and interest on the Bonds are payable out of the Bond. Account, (ii) payments will be made into the Bond Account to satisfy the Sinking Fund. Requirements on the Term Bonds, and (iii) proceeds of the Bonds or other funds of the City legally available therefor will be deposited into the Reserve Account in an amount sufficient to satisfy the Reserve Account Requirement for the Bonds, all as required by Ordinance Nos. 3148 and 3375; and Fourth, prior to the issuance of the .Bonds, the City will have on file a certificate of a Professional Utility Consultant satisfying the requirements of Section 17(a)(5) of Ordinance No. 3148 and Section 16(a)(5) of Ordinance No. 3375. The parity conditions contained in Ordinance Nos. 3148 and 3375 having been complied with or assured, the payments required in this ordinance to be made out of the Revenue Fund into the Bond. Account and Reserve Account to pay and secure the payment of the principal of and interest on the Bonds shall constitute a lien and charge upon the money in such Revenue Fund equal in rank with the lien and charge thereon for the payments required to be made into the Bond Account to pay and secure the payment of the principal of and interest on the 2003 Bonds and 2009 Bonds. Section 5. Authorization and. Description of Bonds. To finance costs of the Projects and pay costs of issuing the Bonds, the City will issue its water and wastewater utility revenue bonds in the aggregate principal amount of $PAMT (the ``Bonds"). The Bonds will be designated as the "City of Port Angeles, Washington, Water and Wastewater Utility Revenue Bonds, 20110," will be dated as of the date of their initial delivery to the Underwriter, will be in. the denomination of $5,000 each, or integral multiples thereof (provided that no Bond may represent more than one maturity), will be fully registered as to principal and interest, and will be numbered separately in such manner and with any additional identification as the Bond Registrar deems necessary for identification. The Bonds will bear interest from their date (calculated on. the basis of a year of three hundred sixty (360) days and twelve 30 -day months) payable on May 1 and November 1 of each year, beginning on November 1, 2010, at the rates per annum and mature on. November 1 of the years and in the principal amounts, as follow: Maturity Year Principal. Interest (November 1) Amount Rate 2010 $ 2011. 2012 2013. -16- RM391 DDTt2039i 2A4 07120110 Maturity Year Principal Interest (November 1) Amount Rate 2014. 2015 2016. 2017. 2018 2019 2020 2021. 2022 2023 2024 2025 2026 2027 2028 2029 2034* * Term Bonds Principal of and interest on the Bonds are payable solely from the Bond Account. The Bonds are not general obligations of the City or of the State of Washington or any political subdivision thereof: Section 6. Registration, Exchange and. Payments. (a) Bond RegistrarlBond Register. The City hereby adopts the system of registration and transfer for the Bonds approved by the Washington. State Finance Committee, which utilizes the fiscal agency of the State of Washington in New York, New York, as registrar, authenticating agent, paying agent and transfer agent (collectively, the "Bond Registrar"). The Bond. Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient records for the registration and transfer of the Bonds, which shall be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the 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 6(g) hereof, but such registration may be transferred as herein provided. All such payments made as described in Section 6(g) shall be valid and shall satisfy the liability of the City upon such. Bond to the extent of the amount or amounts so paid. -17- P:i2939Y DOWD39i 2m o7imio (c) DTC AcceptancelLetter of Representations. The Bonds will be held. initially 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 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 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 the Bonds, any notice that is pennitted or required to be given to Registered Owners under this ordinance (except such notices as are 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 hereunder, and all references herein to the Registered Owners shall mean DTC or its nominee and shall not mean the owners of any beneficial interest in the Bonds. (d) Use of Depository. (1) 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 that maturity. Registered ownership of such immobilized. Bonds, or any portions thereof, may not thereafter be transferred except (i) 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; (ii) to any substitute depository appointed by the City pursuant to subsection (2) below or such substitute depository's successor: or (iii) to any person as provided in subsection (4) below. (2) 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 Council may hereafter appoint a substitute depository. Any such substitute depository shall be qualified under any applicable laws to provided the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause (i) or (ii) of subsection (1) 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 of such Bonds then outstanding, registered in the name of such successor or such substitute depository, or their nominees, as the case may be, all as specified in such written request of the City. (4) If (i) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (ii) the Council determines that it is in the best interest of the beneficial owners of any of the Bonds that they be able to obtain such Bonds in the form of bond certificates, the ownership of -is- P.,UG397 ®OT120391 2A4 07/20/10 Bonds may then be transferred to any person or entity as herein provided, and the Bonds 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, to issue Bonds as herein provided in any authorized denomination. Upon receipt of all then outstanding Bonds by the Bond Registrar together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in such denominations and registered in the names of such persons as are requested 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 therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the 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 a 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 notice of the call of such bonds for redemption. (f) Registration Covenant. The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (g) Place and Medium of Payment. Both principal of and interest on the Bonds are payable in lawful money of the United States of America. For so long as all Bonds are in fully immobilized form, payments of principal and interest thereon will be made in accordance with the operational arrangements of DTC referred to in the Letter of Representations. If the Bonds are no longer in fully immobilized form, interest on the Bonds will 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 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 Bonds will be payable upon presentation and surrender of the Bonds by the Registered Owners at the principal office of the Bond Registrar. (h) 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 -19- PA20391 DUR20391_2M 07/20110 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. Section 7. Redemption, Purchase of Bonds. (a) Optional Redemption. The Bonds maturing in years 2010 through 2020 are not subject to redemption prior to maturity. The Bonds maturing on or after November 1, 2021 are subject to redemption prior to maturity, at the option of the City, on or after November 1, 2020, in whole or in part on any date (and if in part with 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 Bonds are in book -entry form, the selection of Bonds within a maturity to be redeemed and the manner of providing notice of redemption to beneficial owners are governed by the operational arrangements of DTC, as then in effect. [(b) Mandatory Redemption. The Bonds maturing on November 1, 20_ (the "2010 Term Bonds"), shall be redeemed prior to maturity by lot (or paid or purchased at maturity), not later than November 1 in the years as shown below (to the extent such 2010 Term Bonds have not been previously redeemed or purchased) and in the principal amounts set forth below, without premium, together with the interest accrued to the date fixed for redemption. Term Bonds Year Amount 20 $ 20 20 20 20—* * Final Maturity] (c) Partial Redemption. If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar, there will be issued to the Registered Owner, without charge, for the then unredeemed balance of the principal amount, a new Bond or Bonds, at the option of the Registered Owner, of like maturity and interest rate in any authorized denomination. (d) Notice of Redemption. Written notice of any redemption of Bonds (which may be conditional) will be given by the Bond Registrar on behalf of the City by first class mail, postage prepaid, no fewer than twenty (20) days nor more than sixty (60) days before the redemption date to the Registered Owners of Bonds that are to be redeemed at their last addresses shown on the Bond Register. So long as the Bonds are in book -entry form, notice of redemption will be given as provided in the Letter of Representations. The Bond Registrar will provide additional notice of redemption (at least twenty (20) days) to the MSRB, in accordance with Section 21. -20- PA20391_D01120391_2A4 07/20/10 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 will contain the following information: (1) the redemption date, (2) the redemption price, (3) any condition to the redemption (including, but not limited to, the receipt of proceeds of refunding bonds), (4) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the Bonds to be redeemed, (5) that on the redemption date, upon the satisfaction of any conditions, the redemption price will become due and payable upon each. Bond or portion called for redemption, and that interest shall cease to accrue from the redemption date, (6) that the Bonds are to be surrendered for payment at the principal office of the Bond Registrar, (i) the CUSIP numbers of all Bonds being redeemed, (S) the dated date of the Bonds, (9) the rate of interest for each Bond being redeemed, (10) the date of the notice, and (11) any other information needed to identify the 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 will bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. (e) Effect of Redemption. Unless a condition to the redemption has not been satisfied, the City will 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 Bonds to be redeemed. From the redemption date interest on each Bond to be redeemed shall cease to accrue. (f) 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 to maintain compliance with deny promulgated regulations and recommendations regarding notices of redemption of municipal securities. (g) Purchase of Bonds in Open .Market. The City also reserves the right to purchase any of the Bonds in the open market at any time at prices deemed reasonable by the City. -21- PA20391 DOT120391_2,A4 07120t10 NO. Section 8. Form of Bonds. The Bonds shall be in substantially the following farm: UNITED STATES OF AMERICA [Bond. Insurance Legend] STATE OF WASHINGTON CITY OF PORT ANGELES WATER AND WASTEWATER UTII.LI.TY REVENUE BOND, 2010 INTEREST RATE: CUSIP NO: MATURITY DATE: REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: Dollars The City of .Port Angeles, Washington (the "City"), a municipal corporation of the State of Washington, for value received hereby promises to pay to the Registered Owner identified. above, or registered assigns, on the Maturity Date set forth above the Principal Amount set forth above, and to pay interest thereon from the date hereof, or the most recent date to which interest has been paid or duty provided for, at the Interest Rate set forth above payable on the first days of each May and November, commencing on. November 1, 2010. 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. If the bonds of this issue are no longer in fully immobilized form, interest on this bond will be paid by check or draft mailed to the Registered Owner at the address appearing on the Bond Register on the 15th day of the month preceding the interest payment date, and principal of this bond will be payable upon presentation and surrender of this bond by the Registered. Owner at the principal office of the fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York (collectively the "Bond Registrar"). This bond is one of a series of bonds in the aggregate principal amount of $PAMT (the "Bonds"), issued pursuant to Ordinance No. passed by the City Council on August 3, 2010 (the "Bond. Ordinance"), to finance the cost of improvements to the City's water, wastewater and storm water utility. Unless otherwise defined on this bond, capitalized terms used herein have the meanings given them in the Bond Ordinance. The principal of and interest on the .Bonds are payable solely out of the special fund of the City known as the "1.994 Water and Wastewater Utility Revenue Bond Fund" ("Bond Account'') established by Ordinance No. of the City. The Bonds are special limited obligations -22- RQ0391_[ 07U0391_2A4 07120/10 of the City and are not obligations of the State of Washington or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State of Washington is pledged to the payment of the Bonds. Under the Bond Ordinance, the City is obligated to set aside and pay into the Bond. Account out of Gross Revenue of the System certain fixed amounts sufficient to pay when due the principal of and interest and premium, if any, on the Bonds and all other Parity Bonds. To the extent provided by the Bond Ordinance, the amounts pledged to be paid from Gross Revenue into the Bond Account and accounts therein are a lien and charge thereon equal in rank to the lien and charge upon. Gross Revenue of the amounts required to pay and secure the payment of certain. outstanding Parity Bonds and any Future Parity Bonds that the City may issue hereafter, and. superior to all other liens and charges of any kind or nature, except the Costs of Maintenance and Operation of the System. The Bond Ordinance sets forth covenants of the City to secure the payment of Parity Bonds, including but not limited to covenants relating to rates and charges of the System, operations of the System, and the issuance of Future Parity Bonds. The Bonds are subject to redemption prior to maturity as provided in the Bond Ordinance. The Bonds may be transferredand exchanged upon surrender to the Bond Registrar as provided in the Bond Ordinance. The Bonds are not "private activity bonds" as such term is defined in the Internal. Revenue Code of 1986, as amended (the "Code"). The City has designated the Bonds as '.qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. This bond will 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 has been manually signed by the Bond Registrar. It is hereby certified, recited and declaredthat 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, farm and manner as prescribed by law, and that the arnount 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 signed by the manual or facsimile signature of its Mayor, attested by the manual or facsimile signature of the City Clerk, and seal of the City to be impressed or reproduced hereon, all as of 2010. CITY OF PORT ANGELES, WASHINGTON (SEAL) By [Manua] or Facsimile Signaturel Mayor -23- Pi20391 DOrM91 2M 07/20118 Attest. [Manual or Facsimile Sijznaturel City Clerk CERTIFICATE OF AUTHENTICATION Date of Authentication: This is one of the Water and Wastewater Utility Revenue Bonds, 2010, of the City of Port Angeles, Washington, dated _, 2010, as described in the within mentioned Bond Ordinance. WASHINGTON STATE FISCAL AGENCY, Bond Registrar M 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 Transferee) the within bond and does hereby irrevocably constitute and appoint as attorney-in-fact to transfer said band on the books kept for registration thereof with full power of substitution in the premises. DATED: SIGNATURE GUARANTEED: NOTICE: Signature(s) must be guaranteed pursuant to law. 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. -24- PA20391_D07)2039i_2A4 07120/10 Section 9. 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, andshall have the seal of the City impressed, imprinted or otherwise reproduced on each of the Bonds. In case either 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. Only Bonds that bear a Certificate of Authentication in the form set forth in Section 8 hereof, manually executed by the Bond Registrar, will be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication is conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. Section 14. Application of Bond Proceeds. There is hereby authorized to be created in the office of the Finance Director a special account to be designated as the "City of Port Angeles 2010.Water and. Wastewater System. Projects Account" (the "Projects Account"). Proceeds of the Bonds will be deposited into the Projects Account and applied to pay costs of the Projects and costs of issuance of the Bonds. Money in the Projects Account may be invested in Permitted. Investments. Funds remaining in the Projects Account after the Projects have been completed shall be deposited in the :Bond Account. Section 1.1.. Revenue )Fund. Pursuant to Section 2 of Ordinance No. 2843, there has heretofore been created in the office of the Finance Director a fund of the City known as the "City of Port Angeles Water and Wastewater Utility Revenue Fund," which fund is hereby confirmed and continued. The City hereby obligates and binds itself to pay all Gross Revenue as collected into the Revenue Fund. The money in the Revenue Fund shall be held separate and. apart from all other funds and accounts of the City. The Gross Revenue deposited in the Revenue Fund shall be used only for the following purposes and in the following order of priority: FIRST, to pay the Costs of Maintenance and Operation and to maintain a balance in the Revenue Fund sufficient in amount to enable the City to continuously meet. Costs of Maintenance and. Operation on a current basis; SECOND, to make all payments required to be made into the Bond Account to pay the interest on any Parity Bonds; THIRD, to make all payments required to be made into the Bond Account to pay the maturing principal of any Serial Bonds and to make all payments required to be made into the Bond. Account to satisfy the Sinking Fund Requirement;. FOURTH, to make all payments required to be made pursuant to a reimbursement agreement or agreements (or other equivalent documents, including the payment obligations to the [Tnsurer] hereunder) in connection with Qualified. Insurance or a Qualified Letter of Credit; provided that if there is not sufficient money to make all payments under reimbursement. agreements the payments will be made on a pro rata basis; -25- PA20391_DOTl20391_2A4 07120J10 FIFTH, to make all payments required to be made into the Reserve Account to secure the payment of the principal of and interest on outstanding Parity Bonds; SIXTH, to make all payments required to be made into any revenue mond redemption. fund, revenue warrant redemption fund, debt service account, reserve account or bond retirement account created to pay and secure the payment of the principal of and interest on any revenue bonds, or revenue warrants or other revenue obligations of the City, including the State Loans, having a lien upon Gross Revenue junior and inferior to the lien thereon for the payment of the principal of and interest on the Parity Bonds; and. SEVENTH, to retire by redemption or purchase in the open market any outstanding water andwastewater utility revenue bonds, warrants or obligations of the System, to make necessary additions, betterments, improvements and repairs to or extensions and replacements of the System, to make deposits into the Rate Stabilization Fund, or for any other lawful City purposes. Section 12. Rate Stabilization Fund. Pursuant to Section 1.3 of Ordinance No. 2843, a special fund of the City designated the "Water and Wastewater Rate Stabilization. Fund" (the "Rate Stabilization Fund") has heretofore been established in anticipation of future increases in revenue requirements of the System, which fund is hereby confirmed and continued. In accordance with the provisions of Section 9 of Ordinance No. 2843 and Section 1.1 of this ordinance, the City may from time to time appropriate or budget amounts in the Revenue Fund for deposit in the Rate Stabilization. Fund and may from time to time withdraw amounts therefrom for deposit in the Revenue Fund to prevent or mitigate water and wastewater rate increases or for other lawful purposes of the City related to the System. Such deposits or withdrawals may be made up to and including the date ninety (90) days after the end of the fiscal. year for which the deposit or withdrawal will be effective. Section 13. Bond Account. Pursuant to Section 1.5 of Ordinance No. 2843, there has heretofore been created in the office of the Finance Director a fund of the City known as the "1994 Water and Wastewater Utility Revenue Bond Fund" (the "Bond Account"), which fund. and the accounts therein are hereby confirmed and continued. The Bond Account is to be drawn upon for the sole purpose of paying the principal of, premium if any, and interest on any Parity Bonds. The money in the Bond Account shall be kept separate and apart from all other funds and. accounts of the City. All funds in the Bond Account are held in trust for the benefit of the owners of all Parity Bonds at the time outstanding equally and ratably and without preference or distinction as between. Parity Bonds of different series and maturities. (a) Debt Service Account. A special account known as the Debt Service Account has been created in the Bond. Account for the purpose of paying the principal of, premium, if any, and interest on the Parity Bonds. As long as any of the Bonds remain outstanding, the City hereby irrevocably obligates and binds itself to set aside and pay from the Revenue Fund into the Debt Service Account, on or before the date due, those amounts necessary; together with. Gross Revenue collected and. deposited and such other money as is on hand and available therefor in the Debt. Service Account, to pay the interest or principal and interest next coming due on the outstanding Bonds. -26- PA2DW DOM039l 2A4 07120110 The City covenants and agrees that if it issues any Future Parity Bonds that are Term Bonds, it will provide in each ordinance authorizing the issuance of the same for annual. payments to be made from the Revenue Fund into the Debt Service Account sufficient, together with Gross Revenue collected and deposited and such other money as is on hand and available therefor in such account, to amortize the principal of future Parity Bonds that are Term Bonds on or before the maturity date thereof. (b) Reserve Account. A Reserve Account has been created in the Bond Account for the purpose of securing the payment of the principal of and interest on the Bonds and any Future Parity Bonds. The City hereby covenants and agrees that it will satisfy the Reserve Account Requirement for the Bonds by depositing into the Reserve Account, from proceeds of the Bonds or other available funds, an amount that will be sufficient to satisfy the Reserve Account Requirement with respect to the Bonds. The City further covenants and agrees that if it issues any Future Parity Bonds it will provide in each ordinance authorizing the issuance of those Future Parity Bonds that on or prior to the date of issuance of the Future Parity Bonds money will be deposited into the Reserve Account, from proceeds of such bonds or other Rinds available therefor, so that the total amount of money in the Reserve Account will at least equal the Reserve Account Requirement. The City may substitute Qualified. Insurance or a. Qualified Letter of Credit for amounts required to be deposited into the Reserve Account. Such Qualified Letter of Credit or Qualified. Insurance shall not be cancellable on less than 5 years notice. In the event of any cancellation, the Reserve Account shall be funded in accordance with the provisions of this section providing for payment in the event of a deficiency therein, as if the :Parity Bonds that remain outstanding had been issued on the date of such notice of cancellation. The City further covenants and agrees that when the required deposits have been made into the Reserve Account, it will at all times maintain therein an amount at least equal to the Reserve Account Requirement, as redetermined in each calendar year with respect to the bonds secured by such. Reserve Account, Whenever there is a sufficient amount in the Bond Account, including all accounts therein, to pay the principal of, premium, if any, and interest on all outstanding Parity Bonds, the money in the Reserve Account may be used to pay the principal of, premium, if any, and interest on the Parity Bonds secured thereby. Money in the Reserve Account may also be withdrawn to redeem and retire, and to pay the premium, if any, and interest due to such date of redemption, on the outstanding Parity Bonds secured by such. Reserve Account, as long as the money remaining on deposit in such Reserve ,Account is at least equal to the Reserve Account Requirement determined with respect to the Parity Bonds then outstanding. If the Bonds outstanding are ever refunded, the money set aside in the Reserve Account to secure the payment thereof may be used to retire Bonds or may be transferred to any other reserve account that may be created to secure the payment of any bonds issued to refund the Bonds. If there is a deficiency in the Debt. Service Account to meet maturing installments of either interest on or principal of and interest on the outstanding Parity Bonds payable out of such. Account, such deficiency shall be made up from the Reserve Account by the withdrawal of -27- RM391DMj 03912M 07/20/10 money therefrom 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, and if a deficiency still exists immediately prior to an interest payment date and after the withdrawal of cash, the City shall then draw from any Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility in sufficient amount to make up the deficiency. Such draw shall be made at such times and under such conditions as the agreement for such Qualified Letter of Credit or such Qualified. Insurance shall provide. if more than one Qualified Letter of Credit or Qualified. Insurance is available, draws shall be made ratably thereon to make up the deficiency. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from money in the Revenue Fund first available after making the payments required to be made under paragraphs "FIRST" through "FOURTH" of Section 1.1 of this ordinance. (c) Lien of Bond Account. The Bonds, together with the interest thereon, shall. be payable from Gross Revenue, and such. Gross Revenue is hereby pledged and set aside out of the Revenue Fund into the Bond. Account. Said amounts so pledged are hereby declared to be a lien and charge upon Gross Revenue and the money in the Revenue Fund equal to the lien and charge thereon to secure and pay the principal of and interest on the 2003 Bonds, the 2009 Bonds, the Bonds and any Future Parity Bonds and superior to all other charges of any kind or nature, except the Costs of Maintenance and. Operation. (d) Investment of Money in Bond Account. All money in the Debt Service Account or Reserve Account may be kept in cash or invested in :Permitted Investments maturing not later than the last maturity of the Bonds outstanding at the time of such purchase. Interest earned on or profits made from the sale of such investments shall be deposited in and become a part of the Revenue Fund. Section 1.4. Adeuuacy of Revenues. The Council hereby declares that in fixing the amounts to be paid into the Bond Account as hereinbefore provided it has exercised due regard for the Costs of Maintenance and Operation and has not obligated the City to set aside and pay into the Bond Account a greater amount of money in the Revenue Fund than in its judgment will be available over and above such Costs of Maintenance and Operation. Section 15. Covenants and Ap_reements. The City hereby covenants with the owner of each of the Bonds for as long as any of the same remain outstanding as follows: (a) Bates and Charges. The City will establish, maintain and collect lawful. rates and charges for the use of the services and facilities of the System, and will adjust such rates and charges from time to time so that: (1) Gross Revenue will at all times be sufficient (a) to pay all Costs of Maintenance and Operations and to pay all taxes, assessments or other governmental charges lawfully imposed on the System or the revenue therefrom or payments in lieu thereof and any and all other amounts that the City may now be and hereafter become obligated to pay from Gross Revenue by law or contract, and (b) together with Assessments actually collected, to pay the principal of and interest on all outstanding Parity Bands as and when the same become due and. -28- R 120397 DOM0391 2A4 07120110 payable, to make all payments required to be made into the Bond Account to satisfy the Sinking Fund Requirement, and to make when due all payments required to be made into the Reserve Account. (2) The Net Revenue in each Fiscal Year will equal at least 1.25 times Annual. Debt Service for such year (after deducting Assessments actually collected for such year). For the purpose of meeting the requirement of this paragraph there may be added to Net Revenue for any Fiscal Year any amount withdrawn from the Rate Stabilization. Fund and deposited in the Revenue Fund. There shall be subtracted from Net Revenue for any Fiscal Year any amounts in. such year withdrawn from the Revenue Fund and deposited into the Rate Stabilization Fund in such Fiscal Year. From and after such time as no 2003 Bonds remain outstanding, Annual Debt Service for purposes of this rate covenant shall be adjusted to reflect any Debt Service Offset. (b) Maintenance of System. The City will at all times keep and maintain the System in good repair, working order and condition, and will at all times operate the same and the business in connection therewith in an efficient mariner and at a reasonable cost. (c) Sale or Disposition of the System. The City will not sell or otherwise dispose of the System in its entirety unless simultaneously with such sale or other disposition, the City provides for payment into the Bond Account of cash or Government Obligations sufficient together with interest to be earned thereon to pay the principal of and interest on the then outstanding Parity Bonds, nor will "the City sell or otherwise dispose of any part of the useful operating properties of the System unless the City receives the prior written consent of Assured Guaranty (so long as the 2009 Bonds remain outstanding) and replaces such facilities or provides for payment into the Bond Account of the greater of. (1) An amount that will be in the same proportion to the net amount of Parity Bonds then outstanding (defined as the total amount of the Parity Bonds less the amount of cash and investments in the Bond Account and accounts therein) that the Net Revenue from the portion of the System sold or disposed of for the preceding year bears to the total Net Revenue for such period; or (2) An amount that will be in the same proportion to the net principal amount of Parity Bonds then outstanding that the book value of the part of the System sold or disposed of bears to the book value of the entire System iminediately prior to such sale or disposition. The proceeds of any such sale or disposition of a portion of the properties of the System (to the extent required above) shall be paid into the Bond Account. Notwithstanding any other provision of this subsection, the City may sell or otherwise dispose of any of the works, plant, properties and facilities of the System or any real or personal. property comprising a part of the same with a value less than 2% of the net utility plant of the System or that has become unserviceable, inadequate, obsolete or unfit to be used in the operation of the System, or no longer necessary, material to or useful in such operation, without making any deposit into the Bond. Account. -29- P:U039i_DOT20387 2M 07!20110 (d) Collection of Assessments. The City will promptly collect all Assessments levied in any utility local improvement district now or hereafter created to secure the payment of the principal of and interest on any Parity Bonds and shall pay the same into the Bond Account without allocation of such Assessments to any particular series of Parity Bonds. It is hereby provided further, however, that nothing in this ordinance or in this subsection shall be construed to prohibit the City from issuing revenue bonds having a lien on. Gross Revenue junior to the lien on such revenue for the payment of the principal of and interest on Parity Bonds and pledging as security for the payments of such junior lien bonds assessments levied in any utility local improvement district that may have been created to pay part or all the cost of improvements to the System for which such junior lien revenue bonds were specifically issued; provided, however, that the City may not agree to acceleration as a remedy with respect to any bonds or other obligations having a lien on. Gross Revenue junior to the lien thereon of any Parity Bonds. (e) Books and Accounts. The City will maintain complete books and records relating to the operation of the System and its financial affairs, and will cause such books and. records to be audited annually, and cause to be prepared an annual financial and operating statement, which statement will be mailed to any owner of Parity Bonds upon request. (f) .Insurance. The City will carry fire and extended coverage insurance on. the System as is ordinarily carried on the property of similar public utilities by other municipal corporations engaged in the operation of the same, to the full insurable value thereof, and will also carry adequate public liability insurance and other kinds of insurance as under good practices are ordinarily carried on the properties of similar public utilities by private companies engaged in the operation of the same; provided, however, that the City may, if the Council deems necessary and advisable, institute or continue a self-insurance program with respect to any or all of the aforementioned risks. The premiums paid for all such insurance shall be regarded and paid as a Cost of Maintenance and. Operation. (g) Delinquencies. The City will promptly collect all service charges and Assessments, determine in a timely manner all delinquencies, and take all necessary legal action to enforce collection of such delinquencies. (h) No Free Service. Except as permitted by law, the City will not furnish any service of the System to any customer whatsoever free of charge. Section 16. Tax. ExemRtion. (a) General. The City intends for interest on the Bonds to be excludable from gross income for federal income tax purposes under sections 103 and 141 through 154 of the Cade, and the applicable regulations. The City covenants not to take any action, or knowingly omit to take any action within its control, that if taken or omitted would cause the interest on the Bonds to be includable in gross income, as defined in section 61 of the Code, for federal income tax purposes. (b) Tax. Cerfi f tate. Upon the issuance of the Bands, the Finance Director is authorized to execute a federal tax certificate (the "Tax Certificate"), whish will certify to various facts and representations concerning the Bonds, based on the facts and estimates known -30- PA20391o9TlW3912A4 07120110 or reasonably expected on the date of issuance of the Bonds, and make certain covenants with. respect to the Bonds, including but not limited to the following: (i) No Private Activity Bonds. The proceeds of the Bonds will not be used in a manner that would cause the Bonds to be "private activity bonds" within the meaning of the Code, as fiuther described in the Tax Certificate. Moreover, the City covenants that it will use the proceeds of the Bonds (including interest or other investment income derived from. Bond proceeds), regulate the use of property financed, directly or indirectly, with such proceeds, and take such other and further action as may be required so that the Bonds will not be "private activity bonds." (ii) No Federal Guarantee. The City has not and will not take any action, and has not knowingly omitted and will not knowingly omit to take any action within its control, that, if taken or omitted would cause the Bonds to be "'federally guaranteed" within the meaning of the Code, as further described in the Tax Certificate. (iii) No Arbitrage .Bonds. The City reasonably expects that the proceeds of the Bonds will not be used in a mariner that would cause the Bonds to be "arbitrage bonds" within the meaning of the Code, as further described in the Tax Certificate. (iv) No Hedge Bonds. The City reasonably expects that at least 85% percent of the proceeds of -the Bonds will be spent within three years of the date the Bonds are. issued to carry out the governmental purposes of the Bonds. The City covenants that it will comply with the Tax. Certificate unless it receives advice from nationally recognized bond counsel or the Internal. Revenue Service that certain provisions have been amended or no longer apply to the Bonds. (c) Arbitrage .,Rebate. If the City does not qualify for an exception to the requirements of Section 148(f) of the Code relating to the payment of arbitrage rebate to the United States, the City will take all necessary steps to comply with the requirement that certain. amounts earned by the City on the investment of the `'gross proceeds" of the Bonds (within the meaning of the Code) be rebated. (d) Special Designation. The City hereby designates the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. The City does not expect to issue more than $30,000,000 in qualified tax-exempt obligations during the year 2010. Section 1.7. Defeasance. If money or Government Obligations maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire the Bonds or any of them in accordance with their terms are set aside in a special account 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. Account for the payment of the principal of and interest on the Bonds so provided for, and the owners of those Bonds will cease to be entitled to any lien, benefit or security of this ordinance except for the -31- P:=391 DDi120395 2A4 07120/10 right to receive the money so set aside and pledged, and those Bonds will be deemed not to be outstanding hereunder. Within twenty (20) days of any defeasance of Bonds, the City will provide notice of defeasance of Bonds to the [Insurer] and the Registered. Owners and to the MSRB in accordance with Section 21 hereof The City will 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 18. Issuance of Future Parity Bonds, The City hereby further covenants and. agrees with the owners of the Bonds for as long as any of the same remain outstanding as follows: (a) Parity Conditions. That it will not issue any bonds with a lien on. Gross Revenue superior to the lien of the Bonds on such revenue. The City may issue Future Parity Bonds for: First, the purpose of acquiring, constructing and installing additions and improvements to and extensions of, acquiring necessary equipment for, or making necessary replacements or repairs and capital improvements to the System; or Second, the purpose of refunding or purchasing and retiring at or prior to their -maturity any outstanding revenue bonds or other obligations payable out of Gross Revenue; and to pledge that payments be made into the Bond. Account for the payment of the principal thereof and interest thereon out of the RevenueFundsufficient to pay the principal of and interest on such Future Parity Bonds and to maintain the reserves required therefor, which such payments may rank equally with the payments out of such Revenue Fund into the Bond. Account and the Reserve Account to pay and secure the payment of the principal of and interest on any Parity Bonds then outstanding, upon compliance with the following conditions: (1.) That at the time of the issuance of such Future Parity Bonds there is no deficiency in the Bond Account and the Reserve Account. (2) If there are special assessments levied in any utility local improvement district in whish additions and improvements to and extensions of the System will be constructed from the proceeds of such Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require that such special assessments be paid into the Bond. Account. (3) If there are special assessments pledged to be paid into a warrant or bond, redemption fund for revenue bonds or warrants being refunded by Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require such special assessments to be used. for the refunding or paid into the Bond Account. (4) The principal of and interest on the Future Parity Bonds will be payable out of the Bond Account, and the ordinance authorizing their issuance must further provide for payments into the Bond Account to satisfy the Sinking Fund. Requirement and -32- PA20391 DOWD391 2M 07120!10 payments into the Reserve Account to satisfy the Reserve Account Requirement, all as required by Section 13 of this ordinance. (5) Prior to the delivery of any Future Parity Bonds, the City must have on file in the office of the City Clerk either: (a) from and after such time as no 2003 Bonds or 2009 Bonds remain outstanding, a certificate of the Finance Director showing that the Net Revenue (without the adjustments described in subsection (5)(b) below) for each calendar or :Fiscal. Year after the issuance of such Future Parity Bonds will equal at least 1.25 times the Annual. Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid. balance of each assessment roll were paid in the remaining number of installments with interest. on the declining balance at the times and at the rate provided in the ordinance confirming the assessment roll) for each such calendar or Fiscal. Year for all. Parity Bonds plus the Future Parity Bonds proposed to be issued. From and after such time as no 2043 Bonds remain outstanding, Annual Debt Service for purposes of this rate covenant shall be adjusted to reflect any Debt. Service Offset; or (b) a certificate of a Professional Utility Consultant showing: that the Net Revenue determined and adjusted as hereafter provided for each calendar or Fiscal. Year after the issuance of such Future Parity Bonds (the "Adjusted Net Revenue") will equal at least 1.25 times the Annual Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the ordinance confirming the assessment roll) for each such calendar or Fiscal. Year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. From and atter such time as no 2003 Bonds remain outstanding, Annual. Debt Service for purposes of this rate covenant shall.be adjusted to reflect any Debt Service Offset. The Adjusted Net Revenue shall be the Net. Revenue for a period of any twelve (12) consecutive months out of the twenty-four (24) months immediately preceding the date of delivery of such proposed Future Parity Bonds as adjusted by such Professional Utility Consultant to take into consideration changes in Net Revenue estimated to occur under the following conditions for each year after such delivery for so long as any Parity Bonds, including the Future Parity :Bonds proposed to be issued, shall be outstanding: (i) The additional .Net Revenue that would have been received if any change in rates and charges adopted prior to the date of such certificate and subsequent to the beginning of such twelve (12) -month period, had been in force during the full twelve (12) -month period; (ii) The additional Net revenue that would have been received if any facility of the System that became fully operational after the beginning of such twelve (12) -month period had been so operating for the entire period; and (iii) The additional Net. Revenue estimated by such Professional Utility Consultant to be received as a result of any additions, betterments and improvements to -33- RV039M1 ❑OT}20391 2M 07120/10 and extensions of any facilities of the System that are (a) under construction at the time of such certificate or (b) will be constructed from the proceeds of the Future Parity Bonds to be issued. Such Professional Utility Consultant may rely upon, and his or her certificate shah have attached thereto, financial statements of the System certified by the Finance Director showing income and expenses for the period upon which the same is based. The certificate of such Professional Utility Consultant shall be conclusive and the only evidence required to show compliance with the provisions and requirements of this subsection (5)(b). (b) Refunding. Notwithstanding the foregoing requirement, if Future Parity Bonds are to be issued for the purpose of refunding at or prior to their maturity any part or all of the then outstanding Parity Bonds, the certificate described in subsection (a)(5) of this section is not required if the Finance Director provides a certificate stating that upon the issuance of such Future Parity Bonds (i) total debt service on all Parity Bonds (including the refunding Bonds but. not including the bonds to be refunded thereby) will decrease, and (ii) the Annual. Debt Service for each year that any Parity Bonds (including the refunding bonds proposed to be issued) will be outstanding will not increase by more than $5,000 by reason of the issuance of such Future Parity Bonds. (c). Junior Lien Obligations. Nothing herein contained shall prevent the City from issuing any revenue bonds, warrants or other obligations that are a charge upon the money in the Revenue Fund junior or inferior to the payments required by this ordinance to be made into the Bond Account and the Reserve Account; provided, however, that the City may not agree to acceleration as a remedy with respect to any bonds or other obligations having a lien on. Gross Revenue junior to the lien thereon of any Parity Bonds. (d) Variable Rate Obligations. So long as the 2009 Bonds are outstanding, the City may not issue variable rate obligations payable from. Gross Revenue without the prior written consent of Assured Guaranty. Section 1.9. Sale of Bonds. The City hereby approves the offer of Seattle -Northwest. Securities Corporation (the "Underwriter") to purchase the Bonds on the terms and conditions set forth in its purchase contract received on the date of this ordinance (the `'Purchase Contract"). The Mayor or City Manager is hereby authorized to sign. the Purchase Contract on behalf of the City and deliver it to the Underwriter. The proper City officials are authorized and directed to do everything necessary for the prompt execution and delivery of the Bonds to the Underwriter, in accordance with this ordinance and the Purchase Contract, and to apply the Bond proceeds in accordance with this ordinance. Section 20. Official Statement. The Council approves the Preliminary Official Statement for the Bonds dated , 2010, and ratifies the Underwriter'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 City deems the Preliminary Official Statement final as of its date except for the omission of information dependent upon the pricing of the Bonds and the completion of a purchase contract. The City agrees to cooperate with the Underwriter to -34- PA20391DOMD391_2M 07/20/10 deliver or cause to be delivered, within seven (7) 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 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 for the Bonds with such additions and changes as they may deem necessary or advisable. Section 21. Undertaking to Provide OnlZoing Disclosure. This Section 21 constitutes the City's written undertaking for the benefit of the owners and. Beneficial Owners of the Bonds as required by Section (b)(5) of the Rule. (a) Financial StatementslOperating .Data. The City agrees to provide or cause to be provided to the MSRB, in accordance with the Rule, the following annual financial. information and operating data for the prior Fiscal Year (commencing in 2011 for the Fiscal Year ended December 31, 2010)- (1) Annual financial statements of the System, which statements may or may not be audited, 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 the headings "Water, Wastewater and Stormwater Fund - Statement of Revenues, Expenses and other Changes in Fund Equity" and "Water, Wastewater and Stormwater Utility - Historical Coverage from Operations' (2) The principal amount of Parity Bonds and debt service coverage for Parity Bonds; (3) Water, wastewater and storm water rates; and. (4) Number of water, wastewater and storm water customers of the System. Items (2) — (4) shall be required only to the extent that such information is not included in. the annual financial statements provided pursuant to (1). The financial information and operating data described above shall be provided on or before nine (9) months after the end of the City's fiscal year. The City's fiscal year currently ends on. December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's internet website or fled with the Commission. If not provided as part of the annual financial information discussed above, the City shall provide to the MSRB the City's audited annual financial statement prepared in accordance with. the Budget. Accounting and Reporting System prescribed by the Washington State Auditor pursuant to RCW 43.09.200 (or any successor statute) when and if available. -35- PA20397 DO7120393 2M 07/20/10 (b) Material Events. The City agrees to provide or cause to be provided, in a timely manner, 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 property secures payment of the Bonds. The Reserve Account is .the applicable debt service reserve. (c) Notification Upon Failure to Provide Financial Data. The City agrees to provide or cause to be provided to the MSRB, in a timely manner, notice of the City's failure to provide the annual financial inforrnation described in subsection (a) above on or prior to the date set forth in subsection (a) above. (d) EMMA; Fermat far Filings with the MSRB. Until otherwise designated by the MSRB or the Commission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("EMMA"), currently located at www.emma.msrb.org. All notices, financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. (e) Termination11M1odiication. The C,ity'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 this section shall be null and void if the City (i) obtains an opinion of nationally recognized bond counsel to the effect that the portion of the Rule requiring that provision is invalid, has been repealed retroactively or otherwise does not apply to the Bonds; and (ii) notifies the MSRB of such opinion and the cancellation of the provision. Notwithstanding any other provision of this ordinance, the City may amend this Section 21 with an approving opinion of nationally recognized bond counsel and in accordance -36- R=391 DOW03e1 zna 07120MO with the Rule. In the event of any amendment of a provision of this Section 21, the City will describe the amendment in the next annual report, and will 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 will be given in the same manner as for a material event under subsection (b), and (ii) the annual report for the year in which the change is made will present a comparison (in narrative form and also, if feasible, 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) Bond Owner's Remedies Under ThisSection. The right of any Bond. Owner or Beneficial Owner of Bonds to enforce the provisions of this section are limited to a right to obtain specific enforcement of the City's obligations hereunder, 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 21, "Beneficial Owner" paeans 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. [Section 22. Bond Insurance.] Section 23. Supplements and Amendments. (a) The Council from time to time and at any time may adopt an ordinance or ordinances supplemental hereof, which ordinance or ordinances thereafter shall become a part of this ordinance, for any one or more or all of the following purposes: (1) To add to the covenants and agreements of the City in this ordinance other covenants and agreements thereafter to be observed, which shall not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect, or to surrender any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this ordinance in. regard to such matters or questions as the Council may deem necessary or desirable and not. inconsistent with this ordinance and which shall not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. (3) To amend or supplement any provision contained in this ordinance for the purpose of obtaining or maintaining a rating on the Bonds so long as such amendment or supplement is not inconsistent with this ordinance and will not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. Any such supplemental ordinance of the Council may be adopted without the consent of the owners of any Bonds at any time outstanding, notwithstanding any of the provisions of subsection (b) of this section; provided, however, that the City shall obtain an opinion of nationally recognized bond counsel to the effect that such supplemental ordinance complies with -37- " R: 2091_®DTT03912M 0712(7110 this subsection (a) and will not adversely affect the interests of the owners of any Bonds or any Parity Bonds in any material respect. (b) With the consent of the owners of not less than 65% in aggregate principal. amount of the Parity Bonds at the time outstanding, the Council may adopt an ordinance or ordinances supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this ordinance or of any supplemental ordinance; provided, however, that no such supplemental ordinance shall: (1) Extend the fixed maturity of any Parity Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owner of each bond so affected; or (2) Reduce the aforesaid percentage of bond owners required to approve any such supplemental ordinance, without the consent of the owners of all of the Parity Bonds then outstanding. It shall not be necessary for the consent of bond owners under this subsection (b) to approve the particular form of any proposed supplemental ordinance, but it shall be sufficient if such consent shall approve the substance thereof. (c) Upon the adoption of any supplemental ordinance pursuant to the provisions of this section, this ordinance shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations of the City under this ordinance and all owners of Bonds outstanding hereunder shall thereafter be determined, exercised and enforced thereunder, subject in all respects to such modification and amendments, and all the terms and conditions of any such supplemental ordinance shall be deemed to be part of the terms and conditions of this ordinance for any and all purposes. Section 24. Lost or Destroyed. Bonds. In case any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, date and tenor to the Registered Owner thereof if the owner pays the expenses and charges of the Bond Registrar and the City in connection therewith and files 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 thereof, and famishes the City and the Bond Registrar with. indemnity satisfactory to both. Section 25. Severability. If a court of competent jurisdiction declares that any one or more of the covenants and agreements in this ordinance to be performed by the City are contrary to law, then such covenant or covenants, agreement or agreements, will be null and void and will be deemed separable from the remaining covenants and agreements in this ordinance and will in no way affect the validity of other provisions of this ordinance or of the Bonds. Section 26. Effective Date. This ordinance will become effective five (5) days from and after its passage and publication. -38- PA20391 OOTQ0395 2M 07/20110 PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting of the Council held on August 3, 2010. Attest: City Clerk CITY OF PORT ANGELES, WASHINGTON Mayor -39- R\20391 D07120391 2M 07/20/10 i CERTIFICATE OF CITY CLERK 1, the undersigned, City Clerk of the City of Port Angeles, Washington, DO HEREBY CERTIFY: 1. That the attached is a true and correct copy of Ordinance No. (the L "Ordinance") of the City, duly passed at a regular meeting of the City Council (the "Council") of the City held on August 3, 2010. i 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper passage of said Ordinance have been fully fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this day of August, QIX11 City Clerk PA20391 DO1120391 2M 07/20/10 Oil PRELIMINARY OFFiCIAL; STATEMENT DATED 2010 w 1*. City of Port Angeles, Washington 'Vater and Wastewater Utility Revenue Bonds, 2010 DATED: Date of Initial Delivery DUE: November 1, as shown below RAnac-1VI00nY's: Applied For. See `RATING" herein. BA\1{ QUALIFIED—The Bonds have been designated as "qualified tax-exempt obligations' within the meaning of Section 265(b)(3)(B) of (lie Internal Revenue Code of 1986, as amended (the "Code"). See "TAX I\IATTERS" herein. Boos -ENTRY 0-,LY—The Bonds will be issued as filly registered bonds in denominations of $5,000, or integral multiples thereof, and will be registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust Company ("DTC"). DTC will act as securities depository for the Bonds. Purchasers will not receive certificates representing their interest in the Bonds purchased. PRE.crnAL AND INTEREST PAYarE:NTS—Interest on the Bonds „ill be payable on November L 2010, and semiannually on May 1 and November I of each year thereafter to the maturity or earlier redemption of the Bonds. Principal of and interest on the Bonds will be payable by the fiscal agency of the State of Washington, in New York, New York, currently The Bank of New York Mellon, as registrar and paying agent (the "Bond Registrar"), as further described herein. For so long as the Bonds remain in a "book -entry only" transfer system, the Bond Registrar mill make such payments only to DTC, which in turn is obligated to remit such payments to its participants for subsequent disbursement to Beneficial Owners of the. Bonds; as further described herein in Appendix D. MATLUUTY SCHEDULE* Due Nov. t Amounts* Interest Rates Yields Due Interest CUSIP Nov.I Amounts* Rates Yields S % % CUSIP REDENEPno—The Bonds are subject to redemption prior to their stated maturities. See the heading "DESCRIPTION OF THE BONDS— Redemption" herein. PL"RPOSE—The Bonds are being issued to provide funds to acquire, develop and construct certain improvements to the combined water, wastewater and stonnwater utilities of the City (the "System") included or to be included in the City's Capital Facilities Plan (the "Projects") and to pay costs of issuing the Bonds. See the heading "SOURCES AND USES OF BOND PROCEEDS" herein. SEcURrTr—The Bonds are special obligations of the City, the principal of and interest on which are payable solely from and secured by a pledge of Gross Revenue of the System, subject to the payment of Costs of Maintenance and Operation of the System. The Bonds are issued on a parity of lien with the City's Water and Wastewater Utility Revenue Bonds, 2003, the City's Water and Wastewater Utility Revenue Refunding Bonds, 2009; and any Future Parity Bonds (as defined herein). Neither the full faith and credit nor the taxing power of the City is pledged to the payment of the Bonds. The Bonds are not general obligations of the City, the State of Washington, or any other municipal corporation or political subdivision thereof: TAX EXE]rPTioN—Li tine opinion of KBL Gates LLP, Bond Counsel, assuming compliance with certain covenants of the Cin-, interest on the Boards is excludable front gross income for federal income tar purposes under existing lm,'. Interest on the Bonds is not an item of tax preference for pulposes of either individual or corporate alternative ininin)um tax and is not included in adjusted current earnings for purposes of the federal alternative mininnan tar inrposed on certain corporations. See 'T.4-1 M47TERS" herein far a discussion of the opinion of Bond Counsel. DELtvERY—The Bonds are offered for sale to Seattle -Northwest Securities Corporation (the "UnderwTitef') subject to the final approving legal opinion of K&L Gates LLP, Seattle, Washington, Bond Counsel. It is expected that the Bonds will be available for delivery to the Bond Registrar on behalf of DTC by Fast-4utoinated Securities Transfer, on or about [August 171, 2010. This coffer page contains certain i! formation for quick- reference onhv It is not a sumntary of the issue Investors must read the entire Oficial Statement to obtain ii formation essential to the making of an infornrerl investinent decision. * Preliminary, subject to change. _SNW Dated: .2010 No dealer, broker, salesman, or other person has been authorized to give any information or to make any O representation, other than the information and representations contained in this Official Statement, in connection with the offering of the Bonds and, if given or made, such information or representations must not be relied upon as having been authorized by the City or Seattle -Northwest Securities Corporation (the "Underwriter''). This Official Statement does not constitute an offer to sell or solicitation of an offer to buy any of the Bonds in any jurisdiction in which it is unlawful to make such offer, solicitation, or sale. The information set forth herein has been obtained from the City and other sources that are believed to be reliable. The Undenvriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Undernvriter does notguarantee the accuracy or completeness of such information. The information herein is subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. In connection with the offering of the Bonds, the Underwriter may over -allot or effect transactions which stabilize or maintain the market price of such Bonds at levels above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at an), time. In the preparation of the projections in this Official Statement, the City has made certain assumptions with respect to conditions that may occur in the future. While the City believes these assumptions are reasonable for the purpose of the projections, they depend upon future events, and actual conditions may differ from those assumed. The City does not represent or guarantee that actual results will replicate the projections in the various tables set forth in this Official Statement. Potential purchasers of the Bonds should not rely on the projections in this Official Statement as statements of fact. Such projections are subject to change, and will change, from time to time. The City has not committed itself to provide investors with updated forecasts or projections. CUSIP' numbers are included on the front cover of this Official Statement for convenience of the holders and 40 potential holders of the Bonds. The CUSIP numbers were provided by CUS1P Global Services and are not intended to create a database and do not serve in any way as a substitute for the CUSIP Global Services. No assurance can be given that the CUSIP numbers for the Bonds will remain the same after the date of issuance and delivery of the Bonds. To permit the Underwriter to comply with Rule 15c2-12 of the Securities and Exchange Commission, the City has deemed this preliminay Official Statement final as of its date, except for the omission of offering prices, interest rates, selling compensation, principal amounts, delivery date, ratings and other terms of the Bonds depending on the foregoing matters. Copyright CUSIP Global Services. CUSIP is a registered trademark of the American Bankers Association. • J • Name Dan Di Guitio Don P=y Brad. Collins Patrick Downie Cherie Kidd Mast Mania Brooke. Nelson CITY OF PORT ANCELES 321 East Fifth Street Port Angeles, Washington 98362 (360) 457-041.1 is-►vw. cit-°ofpa.0 s' Elected. Officials Position Council Member and Mayor Council, Member and Deputy Maur Council Member Council _Member Council Member Council Member Council Member Appointed. Officials ferns 'Expires 12131/2011. 12/33 1/2011 1.2/31:2011. 1.2131/2013 12/31IZO11 1.2;13112.013 12/31Y2013 Kent Myers City Manager 7anessa Hurd City Clerk Yvonne Ziomkowskiinanr.e Director Glenn A. Cutler, P.E. Public Works and Utilities Director William Bloor . - . City Attorney - Bond Registrar The Bank of New York Mellon Nem York. New York 1-800-438-5473 Bonn Counsel. K&L Gates LLP Seattle. Washington Financial Advisor Piper Jaffray & Co. Seattle, Washington Neither the information on the City's website, nor any links from that website, is pari of this Official. Statement, and such information cannot be relied upon to be accurate as of the date of this Official Statement, nor should any such information be relied upon to make investment decisions regarding the Bonds. CM P=391_001 X391 2A2 TABLE OF CONTENTS Page INTRODUCTION ......................................•. -------------I. DESCRIPTI'O'N OF THE BONDS ............................ i General.___ ---- ................ ................ Bond Registrar and Paying Agent, Payment of Bonds ------------------------------ 2 Redemption.................................•.......................2 24 Option to Purchase-, . ------------------- ................ 3 'transfer and Exchange........................................3 Defeasance ........................................... 3 SOURCES AND USES OF BOND 30 PROCEEDS..... ...... ................ ..................•-•-4 Purpose------------•---...-_ ....................... •--•------------4 Sources and Uses of Funds..................................4 SECURITY FOR THE BONDS .......... ___A Pledee of Net Revenue ---------------------------------------- 4 Rate Covenant ......... • ---- • ............................5 Rate. Stabilization Fund.... --------------- 36 Floe of Funds ..................... .............. ................5 Additional Covenants ------------------------------------------ b The Bond Account . . .. ...............................__7 Reserve Account Requirement ........... :......... _.:.:_:'r ; Reserve Account. Insurance Policy -._._.------..----.....8 Enforceability....................................................3 Debt Payment Record ....................... ...................8 LIMITATIONS ON REMEDIES ............................38 Future Parity Bonds -•---_ ... .............................9 CONFLICTS OF INTEREST.................................38 No Acceleration of the Bonds ...................1.0 FINANCIAL ADVISOR..........................................38 DEBT Ps'FORMATION------ ------------------------------ ___ 1'I. Description of Outstanding Parity Continuing Disclosure Undertaking..............._39 Bonds_ ........ __ ..... ___ ...... ... -------•---------..1.1 Underwriting............................... •--------------------41. Schedule of Debt. Service on Parity Rating..... ................ __ ... ...... ... _ ......... ____ ..... Bonds__ .... __ ........ ---- --------Future Parity Bonds.__. ..................................11 Junior Lien. Debt. ...... ........................ I I THE SYSTEM ............................................ .............12 Administration... .......... ___ ....... ....... ... _A2 Labor Relations ---------- •...... • ...............................13 Insurance..... ...... ------- ---------------------------------------13 Capital Facilities Planning................................13 WATER UTILITY- -•------------------------------------------------- 14 Service Area..... ...... ..... __ ------ ...._ •---15 Repair and Replacement Program......................15 Regulatory Compliance.....................................15 Peak. System Flog- Capacities ............................15 Water Rates and Charges...................................1G WASTEWATER UTILITY......................................20 Service Area.......................................................20 Page Peak System Floe Capacities ............................20 Repair and' Replacement Program......................20 Regulatory Compliance.....................................20 Wastewater Utility Rates and Charges .............?0 CSO Project ................... ---------------- ..........23 STORMWATER UTILITY ...... ....---------------------------- 24 Stormwater Utility Rates and. Charges ---------------24 SYSTEM FINANCIAL INFORMATION ...............25 Significant. Financial Policies... ............ __ ... __25 THECITY ----------------------- ............. .............. ___ ------ 30 Principal. City Officers......................................31 Administrative Staff..........................................32 Labor Relations ............. ......_------ --.............32 Pension System ............................ •---------_-.....33 Risk Management ...... ............ ___ ........... ___ ---- 33 Financial Information..... ........... NITIATIVI AND REFERENDUM..... ................... 36 TAY MATTERS -• .................................................37 Qualified Tax -Exempt Obligations ....................3 i LEGAL MATTERS.................................................38 Opinion of -Counsel .... ........... :.......:.::..:..-..::::::-,3g Litigation...........................................................38 Enforceability....................................................3 8 LIMITATIONS ON REMEDIES ............................38 CONFLICTS OF INTEREST.................................38 FINANCIAL ADVISOR..........................................38 OTHER MATTERS................................................39 Continuing Disclosure Undertaking..............._39 Underwriting............................... •--------------------41. Rating..... ................ __ ... ...... ... _ ......... ____ ..... 41 Official Statement Certificate ----------------------------41 APPENDIX A DEMOGRAPHIC AND ECONOMIC INFORMATION APPENDIX B FORM OF LEGAL OPINION APPENDIX C THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31.; 2009 APPENDIX D BOOK -ENTRY SYSTEM APPENDIX E FORM OF 'BO'ND ORDINANCE -ii- P:12UM 09TQ0391 2A2 • 0 OFFICIAL STATEMENT CITY OF PORT ANGELES, «ASHIINGTON WATER AND WASTEWATER UTILITY REVENUE BONDS, 2010 INTRODUCTION The City of Port. Angeles, Washington (the "City"), a municipal corporation duly organized and existing under the laws of the State of Washington (the "State"), furnishes this Official Statement in connection with the offering of S * principal amount of the. City's Water and Wastewater Utility Revenue Bonds, 2010 (the "Bonds"). This Official Statement provides inforination about the City, the Bonds and the City's water, waste«-,ater and stonawater utilities (collectively, the "System:,). This Official Statement is qualified in its entirety by reference to Ordinance No. of the City passed by the City Council on August 3, 2010 (the "Bond Ordinance"). The Bonds are issued under the provisions of the constitution and laws of the State, and pursuant to the. Bond Ordinance, a copy of which is attached hereto in Appendix E. Capitalized terms used herein and not otherwise defined have the meanings given them in the Bond Ordinance. See APPENDIX E --FORM OF BOND ORDP�IANCI.'� The Bonds are being issued to provide funds to acquire_ develop and construct certain improvements to the System. included or to be included in. the City's. Capital Facilities Plan (the "Projects") and to pay costs of issuing the Bonds. See "SOURCES A.ND USES OF BOND PROCEEDS—Purpose'- herein. The Bonds are payable from Gross Revenue of the System, subject only to the payment of the Costs of Maintenance and Operation, and from any utility local improvement district assessments required to be deposited into the Bond Account. The Bonds are issued on a parity of lien with the City's currently outstanding Water and Wastewater Utility Revenue. Bonds, 2003 (the "2003 Bonds") and the City's Water and Wastewater Utility Revenue Refunding Bonds, 2009 (the "2004 Bonds"). The City has reserved the right to issue additional bonds ("Future Parity Bonds") on a parity of lien with the 2003 Bonds, the 2009 Bonds and the Bonds. See "SECURITY FOR THE BONDS." The Bonds are special revenue obligations of the City- Neither the full faith and credit nor the tatting power of the City is pledged to the payment of the Bonds. The Bonds are not obligations of the State of Washington or any political subdivision thereof other than the City. See "SECURITY FOR THE BONDS_„ D'ESCR'IPTION OF THE BONDS General The Bonds will he issued in the aggregate: principal amount of S * and will be dated the date of their delivery to the Underwriter_ The Bonds will mature on the dates and in the principal amounts and will bear interest. from their date, payable on. November 1, 2010, and semiannually on May I and November I of each year thereafter, at the rates set forth on the cover of this Official Statement- Interest on the .Bonds will be calculated on the basis of a year of 360 days consisting of tw-eive 30 -day months. The Bonds will be issued in registered form, initially registered in the name Cede &, Co., as nominee for The Depository Trust Company. New York, New York ["DTC"), in the denon- enation of $5,000 each or any integral multiple thereof within a single maturity_ Individual purchases of the Bonds will be made initially in book -entry 0 . Preliminary, subject to change. form only and purchasers will not receive certificates representing their interest in the Bonds purchased. See APPENDIX D—"BOOK ENTRY SYSTEM." 40 Bond Registrar and. Paying Agent, Payment of Bonds The City has adopted the system of registration for the Bonds approved, from time to time, by the State Finance Committee of the. State. Pursuant to chapter 45.80 of the Revised. Code of Washington ('RCW'), the. Committee designates one or more fiscal agencies for bonds issued within the State. The State's fiscal agent in New York City, currently The Banka of New York Mellon (the "Bond Registrar"), will authenticate the Bonds and act as paying agent. and registrar for the Bonds. No resignation or removal of the Bond Registrar will become effective until a successor has been appointed and has accepted the duties of Bond Registrar. To meet payment requirements for interest on and principal of the Bonds as the same become due and payable, the City will remit money from the Bond Account to the Bond Registrar. See "SECURITY' FOR THE BONDS—The Bond Account" herein. The Bund Registrar will in tum remit such principal and interest to DTC participants for subsequent disbursement to the 'Beneficial Owners of the Bonds as described in APPENDIX D—"BOO-EN1"RY SYSTEM.." In the event that the Bonds are no longer held in book -entry form, interest on the Bonds will be paid by check or draft mailed to the Registered Owners at the addresses for such Registered OiNmers appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date. Principal of the Bonds is payable. upon presentation and surrender of such 'Bonds by the Registered Owners at the principal office of the Bond Registrar. Redemption Optional Redemption.. The Bonds maturing in years 2010.through 20 are not subject to -redemption .prior. to maturity. The Bonds maturing on or after November L 20 are subject to redemption prior to maturity, at the option of the City, on or after November 1. 20_, in whole or in part on any date (and if in part with 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 Bonds are in book -entry form, the selection of Bonds within a maturity to be redeemed and the manner of providing notice of redemption to beneficial owners are governed by the operational arrangements of DTC, as then in. effect. Mandatory Redemption. The Bonds maturing on. November 1, 20— (the Term Bonds"), shall be redeemed prior to maturity by lot (or paid or purchased at maturity), not later than November 1 in the years as shown below (to the extent such Term Bonds have not been previously redeemed or purchased) and in the principal amounts set forth below, without premium, together with the interest accrued to the date fixed for redemption: Term Bonds Redemption Date Principal (November 1) Amount * Maturity Partial Redemption- '1'.f less than all of the principal amount of any Bond is redeemed, upon surrender of such Band at the principal office of the Bond Registrar, there will be issued to the Registered Owner, without charge, for the then unredeemed balance of the principal amount_ a new Bond or Bonds, at the option of the Registered Owner, of like maturity and interest rate in any authorized denomination- -7- 11;12€1391 DOT20391 2A2 • Notice of Redemption. For as long as the Bonds are held in book -entry -only form, the Bond Registrar will provide notice of redemption (which may be conditional) to DTC only, and it will be the responsibility of DTC to disseminate notices to DTC participants. The City will not provide any notice of redemption to Beneficial Owners of Bonds. See APPENDIX D ---- "BOOK -ENTRY SYSTEM." If the Bonds are no longer held in book -entry -only form, notice of redemption (which may be conditional) will be given not fewer than 20 days nor more than 60 days prior to the redemption date by first-class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the bond registration books maintained by the Bond Registrar. Interest on the Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. Unless a condition to the redemption has not been satisfied, the City will 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 Bonds to be redeemed. From the redemption date interest on each Bond to be redeemed shall cease to accrue. Option to Purchase The City has reserved the right to purchase any of the Bonds in the open market at any time at prices deemed reasonable by the City. Transfer and Exchange If the Bonds are no longer held in book -entry -only form, the Bonds may be transferred or exchanged by Registered Owners upon completion of the assignment form on the Bond(s) in form and substance satisfactory to the Bond Registrar and delivery to the Bond Registrar of the Bond(s) to be exchanged or transferred to the Bond Registrar for cancellation.. Upon -such surrender and cancellation, the Bond Registrar will authenticate.- and deliver to -the new Registered Owner a new Bond or Bonds of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination. The Bond Registrar is not required to register the transfer or to . exchange Bonds during the 15 days preceding any interest payment date or principal payment date on which any such Bond is to be redeemed. • Defeasance The City has reserved the right to defease the Bonds or any portion of them by providing for their payment. Payment of all or any portion of the Bonds may be provided for by irrevocably pledging and setting aside in a special account cash and/or "Government Obligations," as such term is defined in chapter 39.53 RCW. Such cash and Government Obligations may be applied solely for the purpose of paying the principal of the Bonds at maturity and interest thereon as the same may become due. Such cash and the maturing principal of and interest on such Government Obligations shall be sufficient to pay when due such principal and interest. Within 20 days of any defeasance of Bonds, the Bond Registrar will provide notice of defeasance of Bonds to, among others, Registered Owners, all in accordance with the Bond Ordinance. As currently defined in chapter 39.53 RCW, the term "Government Obligations" means (a) direct obligations of or obligations, the principal of and interest on which are unconditionally guaranteed by the United States of America and bank certificates of deposit secured by such obligations; (b) bonds, debentures, notes, participation certificates or other obligations issued by the Banks for Cooperatives, the Federal Intermediate Credit Bank, the Federal Home Loan Bank System, the Export -Import Bank of the United States, federal land banks or the Federal National Mortgage Association; (c) public housing bonds and project notes fully secured by contracts with the United States; and (d) obligations of financial institutions insured by the Federal Deposit Insurance Corporation to the extent insured or guaranteed as permitted under any other provision of State law. -3- P:120391 00T,2039r 2A2 SOURCES AND USES OF BOND PROCEEDS Purpose The proceeds of the Bonds will be used to provide funds to acquire, develop and construct certain improvements to the System included or to be included in the City's Capital Facilities Plan, including advanced metering infrastructure, water pipeline improvements, sewer pipeline improvements wastewater Supervisory Control and Data Acquisition (SCADA) improvements, a septage receiving station, wastewater treatment plant improvements, and stormwater system improvements (the "Projects"): and to pay costs of issuing the Bonds. See "THE SYSTEM— Capital Facilities Planning" for a summary of the City's Capital Facilities Plan. Sources and Uses of Funds The table below sets forth the expected sources and uses of proceeds of the Bonds and other funds in connection with the issuance of the Bonds and the financing of the Projects. Sources of Funds Principal Amount of the Bonds (1) Net Original Issue Premium/(Discount) City Contribution Total Sources: Uses of Funds Projects Account 'Reserve Account Costs of Issuance (2) Additional Proceeds Total Uses: S S S S (1) Preliminary, subject to change. (2) Includes fees of bond counsel, financial advisor, rating agency and escrow agent, printing costs, Underwriter's discount, and other costs associated with issuing the Bonds. SECURITY FOR THE BONDS Pledge of Net Revenue The Bonds are payable from Gross Revenue of the System, subject only to the payment of the Costs of Maintenance and Operation, and from any utility local improvement district assessments required to be deposited into the Bond Account ("Assessments"). The Bonds are issued on a parity of lien with the City's currently outstanding 2003 Bonds and 2009 Bonds. The City has reserved the right to issue Future Parity Bonds. See "Future Parity Bonds" below. Together, the 2003 Bonds, the 2009 Bonds, the Bonds, and any Future Parity Bonds are referred to herein as the "Parity Bonds." The Bonds are special limited obligations of the City payable only from the Bond Account. The Bond Account will at all times be completely segregated and set apart from all other funds and accounts of the City for the security and the payment of the principal of and interest on the Parity Bonds as they become due. The Bonds are not an obligation of the State or any political subdivision thereof other than the City, and neither the full faith and credit nor the taxing power of the City or the State are pledged to the payment of the Bonds. -4- P120391 DOT,2Q397 2A2 0 40 C� J 0 Rate Covenant The City has covenanted in the Bond Ordinance for the benefit, of 'Bond owners to establish, maintain and collect lawful rates and charees for the use of the services and facilities of the System, and will adjust such rates and charges from time to time so that: (1) Gross Revenue will at all times be sufficient (a) to pay all Costs of Maintenance and Operation and to pay all taxes, assessments or other governmental charges lawfully imposed on the System or the revenue tlrerefrom or payments in lieu thereof and any and all other amounts that the City may now be or hereafter become obligated to pay from Gross Revenue by law or contract, and (b) together with. Assessments actually collected, to pay the principal of and interest on all outstanding Parity= Bonds as and when the same become due and payable, to make all payments required to be made into the Bond Account to satisfy the Sinking Fund Requirement, and to make when due all payments required to be made into the Reserve Account. (2) Fhe Net Revenue in each Fiscal Year will equal at least 1.2.5 times Annual 'Debt Service .for such year (after deducting Assessments actually collected for such near)- For the purpose of meeting this requirement there may be added to Net Revenue for any Fiscal Year any amount withdrawn from the Rate Siabilization Fund and deposited in the Revenue Fund. There must be subtracted. from Net Revenue for any Fiscal Year anv amount's in such near withdrawn from the revenue Fund. and deposited into the Rate Stabilization. Fund in such. Fiscal Year. From and after such time as no 2003 Bonds rernain outstanding, Annual Debt. Service for purposes of this rate covenant shall. be adjusted to exclude any Debt Seiiice Offset. Rate Stabilization Fund--- The und•- The City has established a Rate Stabilization Fund. As of July 1. 2010, the balance in the Rate Stabilization Fund. was $1,130;000. The City may from time to time appropriate or budget amounts in the Revenue .Fund for deposit in. the. Rate Stabilization Fund and may from time to time withdraw amounts therefrom for deposit in the Revenue Fund to prevent or mitigate water and wastewater rate increases or for other lawful purposes of the City related to the System_ Such deposits or withdrawals may be made up to and including the date 90 days after the end of the fiscal year for which the deposit or withdrawal will be effective- The City may utilize amounts on deposit in the Rale Stabilization Fund .to meet the rate coverage requirement described in subparagraph (2) above and the requirements for issuing Future Parity Bonds- For purposes of calculating coverage of Annual Debt. Service there must be: (a) added to Net Revenue for any Fiscal Year the amount withdrawn from the Rate Stabilization Fund, and deposited. in the Revenue Fund, during that Fiscal Year; and (b) subtracted from. Net Revenue for any Fiscal Year the amount withdrawn from the Revenue Fund and deposited into the Rate Stabilization Fund during that Fiscal Year. Flow of Funds All Gross Revenue is deposited as collected into the Water and. Sewer Revenue Fund (the "Revenue Fund") created. by Ordinance No. 2843 and continued by the Bond Ordinance- Money in the Revenue Fund is held separate and apart from all other funds and accounts of the City. Money in the Revenue Fund may be invested in any Permitted Investment. Gross Revenue in the Revenue Fund is to be applied as follocas: First; to pay the Costs of Maintenance and Operation and to maintain a balance in the Revenue Fund sufficient in amount to enable the City continuously to meet Costs of Maintenance and Operation on a current basis; Second, to make all payments required to be made into the Bond Account to pay the interest on any Parity= Bonds: Third, to make all payments required to be made into -the Bond Account to pay the maturing principal of any Parity Bonds and to satisfy the Sinking Fund Requirements; -5- P;Q0393 007:20399 2A2 Fourth, to make all payments required to be made pursuant to a reimbursement agreement or agreements (or 40 other equivalent documents) in connection with Qualified Insurance or a Qualified Letter of Credit_ provided that if there is not sufficient money to make all payments under reimbursement agreements the payments will be made on a pro rata basis;. Fath, to make all payments required to be made into the Reserve Account to secure the payment of the principal of and interest on outstanding Parity Bonds; Sixth, to make all payments required to be made into any revenue bond redemption ,fund, revenue warrant redemption fund, debt service account; reserve account or bond retirement account created to pay and secure the payment of the principal of and interest an any revenue bonds, or revenue warrants or other revenue obleat ions of the City, including the State Loans, having a lien upon the Revenues junior and inferior to the lien thereon for the payment of the principal of and interest on the Parity Bonds; and Seventh, to retire by redemption or purchase any outstanding water and wastewater utility revenue bonds, warrant, or other obligation of the System, to make necessary additions, betterments, improvements and. repairs to or extensions and replacements of the System, to make deposits into the Rate Stabilization. Fund, or for any, other lawful City purposes. Additional Covenants Maintenance and Operation. The City will at all times keep and maintain the. System in good repair, working order and condition and will at all times operate the same and the business in connection therewith in an efficient manner . and' at areasonable -cost: - - - ­ - - - ...I..... .. ".- ',._,..4Z- ._ .._.. :Sale or Disposition of System. The City will not sell or otherwise dispose of the System in its entirety unless simultaneously with such sale or disposition the City provides for the payment into the Bond. Account of cash or Government Obligations sufficient, together with interest to be earned thereon, to pay the principal of and interest on then outstanding Parity Bonds. Ibe City will not sell or othenvise dispose of any part of the useful operating properties of the System unless the City receives the prior written consent of the municipal bond insurer for the 2009 Bonds and replaces such facilities or provides for payment into the Bond Account of the greater of - (1) An amount that will be in the same proportion to the net amount of Parity 'Bonds then outstanding (defined as the total amount of the Parity Bonds less the amount of cash and investments in the 'Bond Account and accounts therein) that the Net Revenue from the portion of the System sold or disposed of for the preceding year bears to the total Net Revenue for such period; or (2) An amount that will be in the same proportion to the net principal amount of Parity Bonds then outstanding that the boon value of the part of the System sold or disposed of bears to the book value of the entire System immediately prior to such sale or disposition. The proceeds of any such sale or disposition of a portion of the properties of the. System (to the extent. required above) shall be paid into the Bond Account. Notwithstanding the foregoing, the City may sell, or otherwise dispose of any of the works; plant, properties and. facilities of the System or any real or personal property comprising a part of the same with a value less than 2% of the net utility= plant of the System or that has become unserviceable, inadequate, obsolete or unfit to be used in the operation of the SysteirL or no longer necessary, material to or useful in such operation, without malting any deposit into the Bond Account. Collection of Assessments. The City will promptly collect all Assessments levied in any utility local improvement district now or hereafter created to secure the payment of the principal of and interest on the Parity. Bonds and shall pay the same into the Bond Account v rithout allocation of such Assessments to any particular series of Parity Bonds. -6- P:12039i D0W0391 2h2 • The City may, however, issue revenue bonds having a lien on Gross Revenue junior to the lien on such revenue for the payment of the principal of and interest on Parity Bonds and pledging as security for the payments of such junior lien bonds assessments levied in any utility local improvement district created to pay part or all the cost of improvements to the System for which such junior lien revenue bonds were specifically issued; provided however, that the City may not agree to acceleration as a remedy with respect to any bonds or other obligations having a lien on Gross Revenue junior to the lien thereon of the Parity Bonds. Insurance. The City will cant' fire and extended coverage insurance on the System as is ordinarily carried on the property of similar public utilities by other municipal corporations engaged in the operation of the same, to the full insurable value thereof_ and will also carry adequate public liability insurance and other kinds of insurance as under good practices are ordinarily carred on the properties of similar public utilities by private companies engaged in the operation of the same; provided, however, that the City may, if the Council deems necessary and advisable, institute or continue a self-insurance program with respect to any or all of the aforementioned risks. The premiums paid for all such insurance will be regarded and paid as a Cost of Maintenance and Operation. Books and Accounts. The City will maintain complete books and records relating to the operation of the System and its financial affairs, and will cause such books and records to be audited annually, and cause to be prepared an annual financial and operating statement, which statement will be mailed to any owner of Parity Bonds upon request. Delinquencies. The City will promptly collect all service charges and Assessments, determine in a timely manner all delinquencies, and take all necessary legal action to enforce collection of such delinquencies. X ­o Free Sen?iee. Except as permitted by law, the City will not furnish any service of the System to any customer whatsoever free of charge. The Bond Account • The Bond Account, which was created by Ordinance No. 2843 and continued by the Bond Ordinance, is used solely for the purpose of paying the principal of, premium, if any, and interest on the Parity Bonds and of retiring the Parity Bonds prior to maturity. A Debt Service Account and a Reserve Account have been created in the Bond Account. All funds in the Bond Account are held in trust for the benefit of the owners of all Parity Bonds at the time outstanding equally and ratably and without preference or distinction as between Parity Bonds of different series and maturities. V Funds in the Bond Account will be transmitted to the Bond Registrar in amounts sufficient to meet the maturing installments (or mandatory redemption) of principal of and premium, if any, and interest on the Bonds when due. Reseiwe account Requirement The Bond Ordinance provides for the funding and maintenance of a Resen-e Account within the Bond Account for the payment of debt service on Parity Bonds in an amount equal to the least of (a) 125% of Average Annual Debt Service on all outstanding Parity Bonds, (b) 10% of the stated principal amount of all outstanding Parity Bonds, or (c) maximum Annual Debt Service on such bonds. Under the Bond Ordinance, the City is required to meet the Reserve Account Requirement upon the issuance of any Future Parity Bonds. As discussed below under "Reserve Account insurance Policy," the current cash balance in the Reserve Account is 51,100,000. The City will satisfy the Reserve Account Requirement for the Bonds (S ) by depositing into the Reserve Account, from proceeds of the Bonds or other available funds, an amount that will be sufficient to satisfy the Reserve Account Requirement with respect to the Bonds. See "SOURCES AND USES OF BOND PROCEEDS—Sources and Uses of Funds." The City has covenanted in the Bond Ordinance that if it issues any Future .Parity Bonds it will provide in each ordinance authorizing the issuance of those Future Parity Bonds that on or prior to the date of issuance of the Future Parity Bonds money will be deposited into the Reserve Account, from proceeds of such bonds or other funds available therefor, so that the total amount of money in the Reserve Account will at least equal the Reserve Account • Requirement. See "Future Parity Bonds" below. -7- P..°Q0391_D0T120397_2A2 The City may substitute Qualified Insurance or a Qualified Letter of Credit for amounts required to be deposited into e the Reserve Account. Such Qualified Letter of Credit or Qualified Insurance shall not be cancellable on less than 5 years' notice. In the event of any cancellation, the Reserve Account will be funded in accordance with the provisions of the Bond Ordinance providing for payment in the event of a deficiency therein, as if the Parity Bonds that remain outstanding had been issued on the date of such notice of cancellation. The City has also covenanted and agreed in the Bond Ordinance that when the required deposits have been made into the Reserve Account, it will at all times maintain therein an amount at least equal to the Reserve Account Requirement, as redetermined in each calendar year with respect to the bonds secured by the Reserve Account. Whenever there is a sufficient amount in the Bond Account, including all accounts therein, to pay the principal of, premium, if any, and interest on all outstanding Parity Bonds, the money in the Reserve Account may be used to pay the principal of, premium if any; and interest on the Parity Bonds secured thereby. Money in the Reserve Account may also be withdrawn to redeem and retire, and to pay the premium, if any, and interest due to such date of redemption, on the outstanding Parity Bonds secured by the Reserve Account; as long as the money remaining on deposit in the Reserve Account is at least equal to the Reserve Account Requirement determined with respect to the Parity Bonds then outstanding. If the Bonds outstanding are ever refunded, the money set aside in the Reserve Account to secure the payment thereof i may be used to retire Bonds or may be transferred to any other reserve account that may be created to secure the payment of any bonds issued to refund the Bonds. If there is a deficiency in the Debt Service Account to meet maturing installments of either interest on or principal of and interest on the outstanding Parity Bonds payable out of the Account, the deficiency will be made up from the Reserve Account by the withdrawal of money therefrom 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, and if a deficiency still exists immediately prior to an interest payment date and after the withdrawal of cash, the City shall then draw from any Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility in sufficient amount to make up the deficiency. Such draw shall be made at such times and under such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance shall provide. If more than one Qualified Letter of Credit or Qualified Insurance is available, draws shall be made ratably thereon to make up the deficiency. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from money in the Revenue Fund first available after making the payments required to be made under paragraphs "First" through "Fourth" under the heading "Flow of Funds" above. Reserve Account Insurance Policy As an alternative to cash funding of the Reserve Account Requirement, the ordinances authorizing the Parity Bonds, including the Bond Ordinance, permit the City to satisfi, the Reserve Account Requirement by providing a Qualified Letter of Credit, Qualified Insurance, or other equivalent credit facility. When the 2003 Bonds were issued, the City obtained a Debt Service Reserve Surety Bond from MBIA Insurance Corporation (" MBLA") to satisfy the Reserve Account Requirement with respect to those bonds (the "2003 Surety"). Because MBIA has been downgraded by Moody's, the 2003 Surety no longer meets the rating criteria for "Qualified Insurance." While the 2003 Surety remains a valid obligation of MBIA available to the Reserve Account, the City has funded the Reserve Account Requirement with respect to the 2003 Bonds with cash from the Revenue Fund. Debt Payment Record There is no record of default in the payment of principal of or interest on any bonded indebtedness of the City. • -8- P:t20391 00T\20391_2A2 • Future Parity Bonds In the Bond Ordinance, the City covenants that it will issue no bonds with a lien on Gross Revenue superior to the lien of the Bonds. The City reserves the right to issue Future Parity Bonds to finance improvements to the System or to refund bonds payable from Gross Revenue upon compliance with certain conditions, including the following: (1) That at the time of issuance of such Future Parity Bonds there is no deficiency in the Bond Account and the Reserve Account. (2) If there are special assessments levied in any utility local improvement district in which additions and improvements to and extensions of the System will be constructed from the proceeds of such Future Parity Bonds, the ordinance authorizing such Future Parity Bonds must require that such special assessments be paid into the Bond Account. (3) If there are special assessments pledged to be paid into a warrant or bond redemption fund for revenue bonds or warrants being refunded by Future Parity Bonds; the ordinance authorizing such Future Parity Bonds must require such special assessments to be used for the refirnding or paid into the Bond Account. (4) The principal of and interest on the Future Parity Bonds will be payable out of the Bond Account, and the ordinance authorizing their issuance must further provide for payments into the Bond Account to satisfy the Sinking Fund Requirement and payments into the Reserve Account to satisfy the Reserve Account Requirement. (5) At the time of the issuance of any. Future Parity Bonds, the City must have on file either: (a) front and after such time as no 2003 Bonds or 2009 Bonds remain outstanding, a certificate of the Finance Director showing that the Net Revenue (without the adjustments described below) for each calendar or Fiscal Year after the issuance of such Future Parity Bonds will equal at least 1.25 times the Annual Debt Service (after deducting Assessments; allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the ordinance confirming the assessment roll) for each such calendar or Fiscal Year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. Annual Debt Service for purposes of this rate covenant shall be adjusted to reflect any Debt Service Offset: or (b) a certificate from a Professional Utility Consultant showing: that the Net Revenue received during any 12 consecutive months within the 24 months preceding Elie date of delivery of such Bonds, adjusted as described below by the Professional Utility Consultant, equals at least 1.25 times the Annual Debt Service (after deducting Assessments, allocated to the years in which they would be received if the unpaid balance of each assessment roll were paid in the remaining number of installments with interest on the declining balance at the times and at the rate provided in the ordinance confitming the assessment roll) for each such calendar year or Fiscal Year for all Parity Bonds plus the Future Parity Bonds proposed to be issued. From and after such time as no 2003 Bonds remain outstanding, Annual Debt Service for purposes of this test shall be adjusted to exclude any Debt Service Offset. -9- P:Y20391 007820391 2A2 The "Adjusted Net Revenue" means the Net Revenue for a period of any 12 consecutive months out of the 24 months e immediately preceding the date of delivery of such proposed Future Parity Bonds, as adjusted to take into consideration changes in Net Revenue estimated to occur under one or more of the following conditions for each year after such delivery for so long as any Parity Bonds, including the Future Parity Bonds proposed to be issued, will be outstanding: (a) The additional Net Revenue that would have been received if any change in rates and charges adopted prior to the date of such certificate and subsequent to the beginning of such 12 -month period had been in force during the full 12 -month period; (b) The additional Net Revenue that would have been received if any facility of the System that became fiilly operational after the beginning of such 12 -month period had been so operating for the entire period; and (c) The additional Net Revenue estimated by such Professional Utility Consultant to be received as a result of any additions, betterments, and improvements to and extensions of any facilities of the System that are under construction at the time of such certificate, or will be constructed from the proceeds of the Future Parity Bonds to be issued. Such Professional Utility Consultant may rely upon, and his or her certificate shall have attached thereto. financial statements of the System certified by the Finance Director showing income and expenses for the period upon which the same is based. Notwithstanding the foregoing requirement, if Future Parity Bonds are to be issued for the purpose of refunding at or prior to their maturity any part or all of the -then -outstanding Parity Bonds, the certificate described in -subsection (5) - above is not required if the Finance Director provides a certificate stating that upon the issuance of such Future Parity Bonds (i) total debt service on all Parity Bonds (including the refunding bonds but not including the bonds to be refunded thereby) will decrease, and (ii) the Annual Debt Service for each year that any Parity Bonds (including the refunding bonds proposed to be issued) will be outstanding will not increase by more than S5,000 by reason of the issuance of such Future Parity Bonds. The City reserves the right to issue revenue bonds or other obligations that are a charge upon money in the Revenue Fund junior or inferior to that of the Parity Bonds. No Acceleration of the Bonds The Bonds are not subject to acceleration upon the occurrence of a default. The City; therefore, would be liable only for principal and interest payments as they become due. In the event of multiple defaults in payment of principal of or interest on the Parity Bonds, the Registered Owners would be required to bring a separate action for each such payment not made. This could give rise to a difference in interests between Registered Owners of earlier and later maturing Parity Bonds. -10- P:120391_D0T120391 2A2 • J • DEBT INFORMATION Description of Outstanding Parity Bonds Following the issuance of the Bonds, the Cite will have the following Parity Bonds outstanding' Issue. 2003 Bonds - $4220,000 (1) 2009 Bonds - S7,59000 (1) The Bonds - S (2) Total. (1) Original principal amount. (2) Preliminary, subject. to change. Schedule of Debt Service on Parity Bonds YYear (3) 2010. 2011. 2012 2013 2014 2015 2016 201? 201$ 2019. 2020 2021 2022 2023 2024 21325 2026 2023 2078 Total (5) Fin al 'Maturit►° November 1, 2028. November 1, 2024. November 1. 20_ Outstanding Principal. Amount $ 3,525;000 7.445,000 (2) S Outstanding Parity Bonds (1) The Bonds (2) Total Principal Interest (4) Principal Interest. Parlty Deist (1) Includes the outstanding 2003 Bonds and 2009 Bonds. Does not include currently outstanding Public l'Vorks Trust. Fund loans or Drinkincy Water Revohrng Fund loans. (2) Preliminary, subject to change. (3) Based on Fiscal Years ending December 31. (4) Assumes interest rates ranting from °>o to —%. (5) Totals may not foot due to rounding. Future Parity Bands The City does not currently intend to issue Future 'Parity Bonds on a parity of lien with the 2003 Bands, the 2409 Bonds and the Bonds in the next 1.2 months. Junior Lien. Debt Nothing in the Bond Ordinance prevents the City from issuing bonds; notes, warrants, or other obligations payable from and secured by a lien and charge junior to the lien and charge of the Parity Bonds. The, City currently has outstanding nine Loans from the State's public Works Trust Fund ("PWTV) totaling $4,751,852 and three Drinking -11- R 20391 ❑OM0391 2A2 Water Revolving Fund loans (`'SRF") from the State totaling 52.778,498. which are junior to the Parity Bonds in their lien on the revenues and funds of the System, as shown in the following table. The City is considering issuing. additional SRF loans in 2012 to provide approximately 55,000.000 to $1.0,000;000 for the wastewater utility's combined sewer overflow project. See "THE SYSTEM—Capital Facilities Planning." 'However. this potential debt. has not been considered or approved by the City Council. The City has for many years owned, maintained and operated its water supply and distribution utility, sewage collection and treatment utility as a combined system for borrowing purposes. By the Bond Ordinance, as permitted by the ordinances authorizing the 2003 Bonds and the 2009 Bonds, the City has added the storm%VateT utility to this combined system (as so combined, the "System"). The Public Works and Utilities Department is responsible for the maintenance and construction of all water, server and stormwater facilities within the City. To treat, store, supply and distribute domestic potable water, the Water Division provides and maintains water mains, the Port. Angeles Water Treatment. Plant facility, the Ranney well., five reservoirs, pumping stations; and water meters. The Wastewater Division is responsible for all operation, repair, and maintenance efforts within the sewer collection system_ lift stations, and treatment plant. The water and wastewater facilities of the System serve all areas of the City and extend also into the Urban Gro«rth Area C UGA") east and west of the City. The Stormwater Division is responsible for all operation, repair, construction and maintenance efforts for stormwater facilities to reduce erosion and flooding. as well as meet requirements of the City's National Pollution Discharge Elimination System (`TrPDES") SGraste Discharge Permit issued by the State. Department of Ecology- The City's stormwater system service area includes the area bounded by the City limits, except for those portions of properties owned by the. Port of Port Angeles and Nippon. Paper Industries that have their own Department of Ecology -issued stormwater permit. Administration Glenn .4. Cutler, Director of Public Works and Utilities, is a Registered Professional Engineer in the States of Washington and. Georgia, and has 38 years of experience in managing public works and utility functions for the United States Navy and the City. Stephen P. Sperr, Depury Director^ of Engineering Semuces.'Cay Engineer-. A Registered Professional Engineer in. Washington State, Mr_ Sperr is responsible for supervising the planning: design; and construction management of the City's utility projects. He joined the City's Public Works and. Utilities Department in 1998. Before joining the City, he was ctnployed ,for eight years as a civil engineer for the Indian Health Service. an agency within the federal Department of Health and. Human Services. 0 -12- RT0391 aoTns9, 2A2 Original Outstanding Loan Nfaturlty Principal Amount Principal _mount Water SRF 2018 S 463.500 S 236.393 Water PWTF 2020. 1.168.300 689.066 `heaterPXN-TF 2014. 750,000 267.857 Water PXNFTF 2015 240,000 79,839 Water SRF 2019 1;030,000 542,105 Water PWTF 2024 2,240,000 1,900,310 Wastewater PWTF 20.1.1. 2,500,000 266,254 Wastewater SRF 2028 2.040.000 2.000.000 Wastewater PWTF 2013 760.000 1.67556 Wastewater PWTF 2026 590.000 527.895 Wastewater PWTF 2027. 1.875.000 355,263 Wastewater PWTF 2012. 885,000 497 812 Total. S 14.461,800 5 7,530,350 THE SYSTEM The City has for many years owned, maintained and operated its water supply and distribution utility, sewage collection and treatment utility as a combined system for borrowing purposes. By the Bond Ordinance, as permitted by the ordinances authorizing the 2003 Bonds and the 2009 Bonds, the City has added the storm%VateT utility to this combined system (as so combined, the "System"). The Public Works and Utilities Department is responsible for the maintenance and construction of all water, server and stormwater facilities within the City. To treat, store, supply and distribute domestic potable water, the Water Division provides and maintains water mains, the Port. Angeles Water Treatment. Plant facility, the Ranney well., five reservoirs, pumping stations; and water meters. The Wastewater Division is responsible for all operation, repair, and maintenance efforts within the sewer collection system_ lift stations, and treatment plant. The water and wastewater facilities of the System serve all areas of the City and extend also into the Urban Gro«rth Area C UGA") east and west of the City. The Stormwater Division is responsible for all operation, repair, construction and maintenance efforts for stormwater facilities to reduce erosion and flooding. as well as meet requirements of the City's National Pollution Discharge Elimination System (`TrPDES") SGraste Discharge Permit issued by the State. Department of Ecology- The City's stormwater system service area includes the area bounded by the City limits, except for those portions of properties owned by the. Port of Port Angeles and Nippon. Paper Industries that have their own Department of Ecology -issued stormwater permit. Administration Glenn .4. Cutler, Director of Public Works and Utilities, is a Registered Professional Engineer in the States of Washington and. Georgia, and has 38 years of experience in managing public works and utility functions for the United States Navy and the City. Stephen P. Sperr, Depury Director^ of Engineering Semuces.'Cay Engineer-. A Registered Professional Engineer in. Washington State, Mr_ Sperr is responsible for supervising the planning: design; and construction management of the City's utility projects. He joined the City's Public Works and. Utilities Department in 1998. Before joining the City, he was ctnployed ,for eight years as a civil engineer for the Indian Health Service. an agency within the federal Department of Health and. Human Services. 0 -12- RT0391 aoTns9, 2A2 • Utilin, Aldi-isort7 Committee. The Utility Advisory Committee ("UAC") reviews all major projects and issues affecting the City's utilities and makes recommendations to the City Council. The UAC is composed of three City Council members; a representative from the industrial rate class and a representative from the residential/commercial rate class. The UAC meets monthly and the meetings are open to the public. Examples of issues addressed by the UAC include utility rate adjustments, capital construction project prioritization and utility policy and procedure changes. Labor Relations Employees of the System are represented by a labor union; AFSCME # 1619. See "THE CITY—Labor Relations." Insurance The System is covered under the City's umbrella policy for both property and liability insurance. Liability limits are S4 million per occurrence in the primary layer; S1 million per occurrence, subject to a $20 million annual aggregate,. in the excess layer; and S15 million per occurrence in the second excess layer. See "THE CITI'—Risk Management." Capital Facilities Planning Under RCT 36.70A.070 of the Growth Management Act of the State of Washington, adopted by the Legislature in 1990, the City is required to develop a Comprehensive Plan ("Plan") that represents the City's growth and development over the next 20 years. Among the components of the Plan is the capital facilities element, Nvhich specifically considers the City's fiscal capability to provide the public capital facilities necessary to support the other Plan elements. The capital facilities element, known as the Capital Facilities Plan and Transportation Improvement Program ("CFP/TIP") is intended to prioritize capital improvements for planning periods of six years. The City • annually reviews and adopts the CFP/TIP. The City adopted the CFP/TEP for 2010-2016 on July 6, 2010 The CFP,,TEP is used to identify and coordinate public facility and equipment needs to maximize return to the community. The CFP/TEP includes the capital needs of the System, in addition to other capital facilities of the City. The first year of the CFP/TIP is used to develop the capital projects element of the annual City Budget, and for which the City then appropriates the funds necessary to implement capital improvement projects consistent with the CFP/T1P. • -13- Pi20391 DOT20391 W The following tables indicate the capital improvement projects identified by the City for the System. The City O i expects to finance a portion of these costs incurred in 2010 and 2011 with the proceeds of the Bonds. and the remaining upgrades, expansions, repairs and replacements are expected to be financed by rates and fees collected by the City. Water Utility Capital Facilities Plan 2010 2011 2012 2013 2014 Repairs and Replacements S1.015,000 S2.030,000 $1,790.000 $1,430,000 $1,810,000 Upgrades and Expansions 705,000 1:513,000 790.000 795.000 65,000 Total 51:720,000 53,543,000 $2,580;000 $2,225,000 51,875,000 Source: The Cin, Waste-,vater Utility Capital Facilities Plan 2010 2011 2012 2013 2014 Repairs and Replacements S 467,000 S 485,000 S 0 S 325,000 S 0 Upgrades and Expansions 1,880,600 3,901,000 1;152,000 3;590,000 7,655,000 Total $3,947,600 $15,756,500 512;167,000 $12,660,000 514,930,000 lSource: The On;. Not included in the table above -is. a project for the design and construction of a storage tank -and other related improvements to address combined sewer overflows. The combined sewer overflow ("CSO") tank would be designed to remove settled solids and store excess flows from five main overflow sites along Railroad Ave. and at Francis Street. This project is a requirement for the City's NPDES Waste Discharge Permit to operate the Wastewater Treatment Plant to reduce flows to the plant and reduce the CSOs. The entire CSO project including the tank, 40 outfall reduction and modifications to sewer flow is anticipated to cost approximately $40 million over the course of several years. A combination of State Revolving Fund Loans, Public Works Trust Fund Loans, and a CSO reserve of S3.5 million are expected to be used to fund this project. i Stormwater tltility Capital Facilities Plan 2010 2011 2012 2013 2014 Repairs and Replacements S 53.000 S 0 $ 50;000 S 122,000 S 685000 Upgrades and Expansions 375.000 875,000 890,000 935;000 1,600,000 Total S428.000 S 875,000 $ 940,000 S 1,057,000 5 2,285.000 Source: The Cir;. WATER UTILITY The water utility maintains the City drinking water system from the Ranney collector well next to the Elwha River located east of the City. The water is disinfected at the Port Angeles Water Treatment Plant mentioned below. Re -chlorination occurs at each of the distribution system reservoirs except the Mill Creek Reservoir. The water system has approximately 193 miles of pipe ranging from 1 to 24 inches in diameter, 3 water booster pump stations, and 5 reservoirs with 18 million gallons of storage capacity. There are currently about 8,181 accounts. The water system is divided into three pressure zones, with at least one reservoir for each zone. Rates are based on base charges as well as water usage. The average cost of water for residential customers is $40.27 per month based on 650 cubic feet. The water utility meets or exceeds all State and Federal drinking water standards. -14- PV0391_DOT120391_2A2 • The City also owns and operates a 12 -mile, =18 -inch diameter raw water gravity pipeline that provides water to the industrial users along the waterfront. The source of this water is a surface water intake on the Elwha River approximately 0.5 miles upstream of the City's Ranney welt. This water is treated by those users to meet their needs. The pipeline can provide up to 50 million gallons per day ("mad"). Current use is approximately 20 mgd. Industrial water rates are individually negotiated. V In accordance with the Ehvha River Ecosystem and Fisheries Restoration Act, the federal govermnent provided the City a new water treatment plant which was completed and operational in April 2010..In addition_ the federal government provided funds to offset additional cost incurred as a result of plant operation and maintenance. As of May 2010, the amount reserved for this purpose is nearly $6.7 million. Service Area The City's water system serves the area within the City limits, along with fewer than 100 water customers located outside the City's boundaries. There is also an intertie with Clallam County Public Utility District No. 1 ("Clallam PUD") in the eastern UGA in which the City provides water to Clallam PUD under a wholesale water contract. This serves some Clallam PUD customers on the west side of Morse Creek in conjunction with several Clallam PUD wells in that area. Repair and Replacement Program Each year the City contracts with Utility Services Associates to perform a leak detection survey of approximately one-fifth of the water distribution system. This service helps the Water Division detect and repair leaks that have not been detected visually.. and thus helps in the recovery of lost water revenue and water conservation efforts. The City -contracts annually with GC Systems to service, --calibrate, and rebuild all automatic, modulating, and pressure reducing valves over a five-year cycle. • The City budgets approximately S340,000 every other year for continuation of the repair and replacement of aging water lines as described in the CFP of the City. • Regulatory Compliance The City is in compliance with all State and Federal drinking water regulations and compliance agreements Peak System Flow Capacities The 60 -foot deep Ranney collector well has three 350 horsepower vertical turbine pumps. Each pump has a rated capacity of 5.5 mgd. When tura pumps are in full operation, their combined capacity is 11.3 mgd. The City has water rights for the Ehvha River for municipal use of 22,500 gallons per minute or 32.3 mgd. The average daily demand is 3.3 mgd and the peak day demand over the past five years was 6.84 mgd. Projections for population growth for the purposes of forecasting future water demand for the City as well as for the intertie with Clallam PUD in the eastern UGA shown in the table below were developed based on a 0.5 percent annual growth rate, with demand in the City's current and future service areas estimated to grow at the same rate as population growth. The City's system is expected to meet supply demand beyond -1019. -15- P:Q0391 DOTQ70393 2A2 Population and Demand Projections Population The City 'Vater Demand (mgd) for the City Average Daily Demand Maximum Daily Demand Peak Hour Demand Nater Demand (mgd) for the Cit} plus Clallam PUD No. 1 Average Daily Demand Maximum Daily Demand Peak Hour Demand ERUs (Equivalent Residential Units) Residential Non -Residential 2009 (actual) 2015 2019 19,090 19,965 22,167 10.31 n 12.09 2.42 2.53 2.81 5.46 5.72 6.35 8.92 933 10.35 Source: 2010 Port Angeles Td titer 5}stetn Plan 2.75 2.90 3.28 6.21 6.54 7.41 10.31 10.68 12.09 6,929 7,247 8,046 9,197 9,619 10,679 The following table represents the peak flows for the water system for the past five years. Historical Peak Water Flows Year Peak Flows (mgd) 2009 4.37 2008 5.97 2007 5.91 2006 6.04 2005 6.05 Source: I he ON Rater Rates and Charges The City commissioned a water and wastewater utility cost of service study by FCS Group, Inc. of Bellevue, Washington, for the period 2009 through 2014. The study was completed in 2008 and recommended water rate increases of 8.5% for 2009 and 2010. The 8.5% increase was included in the most recent rate ordinance adopted by the City Council on November 4, 2009 and became effective on January 4, 2010. The City Council reviews rate changes on an annual basis and will be reviewing the 4.0% increase suggested by the FCS Group during the 2011 budget process. The following table represents the water rates and increases adopted by the City Council. Water rates for wholesale customers are established by contract. Rates for customers located outside of the City limits are 50% higher. Of these customers located outside of the City limits, some residential customers pay a flat rate charge in lieu of the monthly base charge plus metered consumption rates. -16- PA20391 D0T20391_2A2 0 0 �11 • • Water Utility Rates and Charges Residential Month7j-Meter° Charge 3J4" Service (w/ 5i8" meter) 3;4" Senice (w! 3/4" meter) 1" 1-1!2" 2" Consumption Charge (per 100 cribic feet) 1S° Tier — 1,000 cubic feet Tier —1, 001 to 1,500 cubic feet 3"d Tier — greener than 1, 500 cubic feet Commercial and All Other Metered Monthly deter Charge 3i4" Service (w/58" meter) 3!4" Service ('wi- 3%4" meter) 1" 1-1.!2" 2" 3" 4„ 8" Cansiwiption Charge --per 100 orbic feet Industrial :11or2thlj, 1140er. Charge Consumption Charge —per 100 cubic feet, Residential. Alonthly Flat Rare ,Monthly Meter- Charge 3,4" Service (Nw 5i8" meter) 34" Service (w13%4" meter) 1" 1-1.12" 2„ Consumption Charge— per 100 cubic feet I' Tier —1, 000 cubic feet fid . Tier -• 1, 001 to 1,500 carbic feet 3''d Tier — greater than 1, 500 cubic feet Wholesale (1) tt) X-Inuaiiirvu. Source: The City 2010 Inside Cite 8 26.75 29.0.5 32.40 60,00 93.85 2.08 2.53 3.17 37.90 40.40 44.60 78.55 119.55 ?14.50 350.60 690.60 1098.45 1.74 NIA 1.55 2010 Outside City S 76.45 40.10 43.60 48.60 90.00 140.80 3.12 3-95 4.80 Per Contract. s-= - -� -17- PA20391 DOP20391 2A2 I The following table is a five-year history of water utility rate increases for residential water users. Rates for commercial and industrial users as well as water 'users outside of the City were increased in the same years. i Water Rate history ,I 2005 2006 2007 2008 2009 illonr a y Flat Rate (1) S 32.30 $ 38.45 S 45.75 $ 48.95 $ 61.15 Monthly Meter Charge 3(4" Service (w,5/8" meter) 14.95 17.80 21.20 22-70 24.65 314" Service (w/3,14- meter) 16.20 19.30 23.00 24-65 26-75 r, 18.15 21.60 25.70 27-58 29.85 1-112" 33.60 40.00 47-60 50.95 55.30 i 2" 52.55 62.55 74-45 79.75 86.50 Consumpf ron Charge - per 100 c f 1.1.9 1.42 1-70 1.82 1.92 i (1) Only charged to customers located outside of Cit, limits. Soni~ce: The City' The following table represents the five-year history of system development and connection charges for new connections with a 518 -inch meter to the water utility - History of Water utility Capital Facilities Charges - System Development Residential Service Vear Charges Connection Fees I 2009 51.,51.0 $980 2008 1,265 770 2007 11200 715 2006 1,200 640 2005 1,025 640 The following table represents the fiscal year annual revenue collections from water charges of the System for users by classification. History of Water Utility Rate and Charge Revenue. Collection (1.) C.lallam PUD Source: The Cita: -18- P:�20393 D6712039r 2612 T Li • Commercial/ Sale For Year Residential Municipal lndustriA Re -Sale (1) Total 20+09 $3,1.89,292 $1,486,891 5 0 5273=483 $ 4,943,666 2008 2,768.017 1,376,938 24,453 247,880 4,417,288 2007 2,613-641 1,324,931 51,805 239,861 4,230,238 2006 2,246,1.8.1 1,122,61,4 43;563 240,462 3,653,020 2005 1,838,632 91.4:515 35,996 204,984 2994,127 (1.) C.lallam PUD Source: The Cita: -18- P:�20393 D6712039r 2612 T Li • • Ten Largest Water Customers Customer Clallam County PUD No. 1 Cite of Port Angeles Nippon Port of Port Angeles Olympic Medical Center Port Angeles School District Clallam Counter Housing Authority Clallam County Peninsula College Port Angeles Hardwood LLC Total Jource L he c 'ttv 2009 Billed Charges Percent of Revenues S267,646 8.4% 117,247 3.7 95,523 3.0 55,141 1.7 55,067 1.7 53,263 1.7 40,351 1.3 34,695 1.1 27,384 0.9 23.755 0.7 $ 770.072 25.9% The following table represents the number of actual residential and commercial water accounts of the City at year end. Currently, the City has one wholesale account (Clallam PUD). Water Accounts Year Residential Commercial Total 2009 6.929 1,252 8,181 2008 6,713 1,135 7,848 • 2007 6,761 1,178 7,939 2006 61690 11163 71853 2005 6,616 1,144 7,760 Source: The Citi; The following table is a sampling of city residential water rates. The cities of Sequim and Port Townsend are the closest cities to the Cite. 2010 Comparable Monthly Residential Water Rates (1) ct = cubic Leet. Source: AIRSC Cih- and County Codes and websites • -19- P120391 DOT20391_M Average Single Family Rate Using City 1,000 cf (1) Ocean Shores $66.27 City of Port Angeles 47.55 Oak Harbor 33.33 Kelso 32.71 Sequim 31.07 Poulsbo 29.64 Aberdeen 29.49 Port Townsend 29.15 (1) ct = cubic Leet. Source: AIRSC Cih- and County Codes and websites • -19- P120391 DOT20391_M WASTEWATER UTILITY The wastewater utility provides for the collection and treatment of wastewater from residential. commercial and industrial uses. The wastewater system has 142 miles of sanitary and combined sewers ranging from 4 to 48 inches in diameter, 12 pump stations, a secondary wastewater treatment plant ("STP") and 7,543 accounts. The primary treatment plant was constructed in 1967 and the STP was constructed in 1994. The STP facility consists of mechanical and manually cleaned bar screens, grit separation and removal, trickling filter/solids contact treatment, two secondary clarifiers, and two chlorine contact basins for disinfection. Dechlorination facilities are also in operation. Sludge is processed through a gravity thickener to two anaerobic digesters to a holding tank and belt filter press. Treated biosolids are hauled to the City's Solid Waste Transfer Station site and composted or land applied. The existing outfall consists of a 27 -inch diameter concrete cylinder pipe projecting 3,500 feet offshore. The outfall ends in a 230 -foot diffuser section at a depth of 60 feet. Service Area The wastewater utility serves most of the City and some customers located in the Urban Growth Areas are also included in the wastewater utility's service area. Peal: System Flow Capacities The treatment plant has a capacity expected to be adequate based on the estimated 2010 population of 19,380, with average annual population growth not exceeding 0.5%. -and a•design population of 24,800. The STP treats an average = . of 2.1 mad of domestic sewage. Peak system flow capacities average 3.3 mgd with a maximum of 13.4 mad. Historical Peak Wastewater Flows O Year Peak Flows (mgd) 2009 8.79 2008 8.79 2007 9.10 2006 7.79 2005 5.93 The STP is currently operating at about one-third of its organic loading capacity. During storms, the system can reach its hydraulic capacity, at which time any overflows bypass the system and go directly to the chlorination system and are discharged to the outfall into the Strait of Juan de Fuca. Repair and Replacement Program The City budgets approximately S300,000 every other year for continuation of the repair and replacement of aging sewer lines. Regulatory Compliance. The City is in compliance with its NIPDES permit issued by the Washington State Department of Ecology ("DOE"). Wastewater Utilit% Rates and Charges Wastewater utility rates were examined as part of the Comprehensive Water and Wastewater Cost of Service Study commissioned by the City in 2009. FCS Group, Inc. concluded in the study that the City wastewater utility rates should be increased by 4.0% in January 2010. The 4.0% increase was approved by the City Council by ordinance on -20- P:QO391_DOT120391_2A2 • October 20, 2009 and became effective January 4. 2010. The City Council reviews rate changes on an annual basis and will be reviewing the 4.0% increase sugjested by the FCS Group during the 2011 budget process. The City's wastewater rates are based on water usage. The following represent the rates currently in effect. Single Residential Unit Monthly Rate. A. Each residential unit and each living unit connected with the City water system is charged a monthly customer charge during the months in which water is consumed. B. The rate for customers whose monthly water consumption equals or exceeds 430 cubic feet is 544.30. C. The rate for customers whose monthly water consumption falls below 430 cubic feet is $39.90. D. The rate for CSO charges is in addition to wastewater rates. A portion of the City's wastewater system is combined with stormwater drainage. The City created a storm water utility in 2004 to address stormwater drainage problems (see description below). See information under the heading "CSO Project" below. Commercial and Industrial Rate. Each commercial and industrial customer connected to the City water system is charged for wastewater service monthly as follows: A customer charge of $11.20 per month plus $3.19 per 100 cubic feet for the amount of metered water consumed by the user in the billing period. CO nvnercial and Industrial Equivalent Plumbing Fixture Rate. Commercial and industrial customers that have a lower water or wastewater discharge into the public sewers than is reflected by their water consumption may apply in writing to the Department of Public Works to have their sewer charges calculated at the following rate: 53.50 times the total number of equivalent plumbing fixtures. The following table shows a five-year history of wastewater utility rate increases for residential, commercial and industrial users. MIastewater Rate History Residential Commercial/Industrial Year Consumption Rate/Month Monthly Rate Plus S/ccf (1) 2010 Below 430 cubic feet $39.90 $11.20 $3.19 Equal to or exceeding 430 cubic feet 44.30 2009 Below 430 cubic feet 38.35 10.75 3.07 Equal to or exceeding 430 cubic feet 42.60 2008 Below 430 cubic feet 37.55 9.80 2.80 Equal to or exceeding 430 cubic feet 41.70 2007 Below 430 cubic feet 35.65 9.30 2.65 Equal to or exceeding 430 cubic feet 39.60 2006 Below 430 cubic feet 34.00 8.85 2.50 Equal to or exceeding 430 cubic feet 37.80 (1) ccf= 1.00 cubic feet. Source: The City • -21- PJ20397 DOTY0397 2A2 The following table represents the five-year history of increases in system development and permit charges for new O connections to the wastewater utility. Clallam Co. Housing Authority 51,384 U.S. Coast Guard 35,862 History of Wastewater Utility Capital Facilities Charges 34,260 Westcoast Hospitality,Red Lion 32,380 System Development Residential Service Clallam County 25,623 Year Charges Permit Fees 19,256 Safeway 2009 $1.510 $135 2008 1.125 120 2007 1.000 95 2006 870 95 2005 745 95 Source: The City History of Wastewater Rate and Charge Revenue Collection Year Residential Commercial Municipal Total 2009 53,187,509 S991,188 530;715 S 4,209.412 2008 3,021,483 909,339 19,952 3,950;774 2007 2,877,426 909,749 24,135 3,811,310 2006 2:721,522 865,405 24,465 3,611,392 2005 2;581,289 797,992 20,073 3,399,354 Source: The Citi Customer Ten Largest Wastewater Customers 2009 Bill Charges Olympic Medical Center $ 65,601 Clallam Co. Housing Authority 51,384 U.S. Coast Guard 35,862 City of Port Angeles 34,260 Westcoast Hospitality,Red Lion 32,380 Port Angeles School District 30,938 Clallam County 25,623 Welcome Inn RV Park 20,902 Extendicare 19,256 Safeway 17,190 Total S333,396 Percent of Revenues 1.56% 1.22 0.85 0.81 0.77 0.74 0.61 0.50 0.46 0.41 7.93% -22- PA20391 DOT�N391_2A2 • is The following table represents the number of actual residential and commercial wastewater accounts of the City at. year end since 2005. Wastewater Accounts Year Residential Commercial Total 2009 6,552 .991 7,54; 2008 6,442 969 7 410 2007 6.454 982 7.435 2066 6,407 936 7,461 2005 6,474 933 7,408 Sponte: The Cie}; 2010 Comparable ic'tonthly Residential NVastewater Rates • CSO Project To meet DOE requirements and timetable for control of CSO events, the City was required to establish a CSO reduction plan. The City has four CSO outfalls that require monitoring as part of the Wasteivater Treatment Plant's NrPDES permit issued by the DOE. The following table summarizes CSO revenues that are accounted for as additional revenue of the wastewater system. Combined Sewer Overflow ;Hate Revenue Year Average Single City Family Rate Poulsbo $87.84 Sequim 49.94 Kelso 49? 2 City of Port Angeles 44.30 Port Townsend 41.85 Oak Harbor 36.52 Aberdeen 30.16 Ocean Shores 24.33 Source::IIRSC Cine and Conn07 Odes and ivebsites 174,625 • CSO Project To meet DOE requirements and timetable for control of CSO events, the City was required to establish a CSO reduction plan. The City has four CSO outfalls that require monitoring as part of the Wasteivater Treatment Plant's NrPDES permit issued by the DOE. The following table summarizes CSO revenues that are accounted for as additional revenue of the wastewater system. Combined Sewer Overflow ;Hate Revenue Year Commercial[Residential 11!l,unicipal Total 2009 $1,124.507 $8.925 S1,133,432 2008 850,645 4,825 855.470 2007 625,519 4.459 629,978 2006 391,865 2,892 394,757 2005 174,625 U89 175,71.4 -23- RQW93 00P2a391 2R2 (l) ccf= 1.00 cubic feet Source: The Cim STO'Ri1'IWATER UTILITY The City created a stormwater utility in 2004 to fund capital projects addressing drainage problems in the City. In 20077, the utility's responsibilities %vere expanded to address water quality and other related requirements under a Starmwat_er Phase 2 NI MES Permit_ This includes stormwater maintenance activities such as street catch basin cleaning and culvert and ditch maintenance: The service area of this utility is the area bounded by the.City limits. tha except for those portions of properties owned by the Port of Port Angeles and Nippon Paper Industries t have their own Department of Ecology-.issuedstorinwater permit_ Storm water Utility Rates and Cbarges The rnonthly stormwater utility charge for all comm erciallmultiple property is calculated by dividing the total impervious area in square feet by 4,000 square fret, times the residential fee. The minimum monthly fee for a commercial, property is not less than the monthly fee for a residential dwelling, and the maximum .monthly commercial fee is not inure than ten times the monthly tee for a residential dwelling. Stormwater Rate Revenue Year CommerciallResidential. 2009 572600 2008 708,935 2007 356,411 2006 437562 2005 343.667 -24- P:iH391 n6r120391 2A2 Combined Sever Overflow Rate Histon, Residential Commercialllndustrial. Year Consumption _ Ratelll4onth Monthly Rate Plus Slccf (1) 2009 Below 430 cubic feet 10.25 52.65 S .90 Equal to or exceeding 430 cubic feet 1'.1.50 2008 Below 430 cubic feet 7.95 2.05 .70 Equal to or exceeding 4.30 cubic feet 8.90 2007 Below 430 cubic feet 7.80 1.50 .50 Equal to or exceeding 430 cubic feet 6.50 2046 Below 430 cubic feet 3.75 .95 .30 Equal to or exceeding 430 cubic feet 4-20 2005 Below 430 cubic feet 1.80 A5 .1,3 Equal to or exceeding 430 cubic feet 2.00 (l) ccf= 1.00 cubic feet Source: The Cim STO'Ri1'IWATER UTILITY The City created a stormwater utility in 2004 to fund capital projects addressing drainage problems in the City. In 20077, the utility's responsibilities %vere expanded to address water quality and other related requirements under a Starmwat_er Phase 2 NI MES Permit_ This includes stormwater maintenance activities such as street catch basin cleaning and culvert and ditch maintenance: The service area of this utility is the area bounded by the.City limits. tha except for those portions of properties owned by the Port of Port Angeles and Nippon Paper Industries t have their own Department of Ecology-.issuedstorinwater permit_ Storm water Utility Rates and Cbarges The rnonthly stormwater utility charge for all comm erciallmultiple property is calculated by dividing the total impervious area in square feet by 4,000 square fret, times the residential fee. The minimum monthly fee for a commercial, property is not less than the monthly fee for a residential dwelling, and the maximum .monthly commercial fee is not inure than ten times the monthly tee for a residential dwelling. Stormwater Rate Revenue Year CommerciallResidential. 2009 572600 2008 708,935 2007 356,411 2006 437562 2005 343.667 -24- P:iH391 n6r120391 2A2 • Stormwater Rate History Year Residential 2009 56.00 2008 6.00 2007 3.00 2006 3.00 2005 3.00 Source: The City SYSTEM FIlNANCI.aL INFORMATION Significant Financial Policies The City Council has adopted the following policies regarding reserves for City enterprise funds, including the Water!4'astewater!Stormwater Fund: A. An operating reserve will be established and maintained to provide sufficient cash flow to meet daily financial needs. This reserve, established by the City Council, is based upon 60 days of operating and maintenance expenses. For the y'Vater;Wastewater!Stormwater Fund, that 60 -day operating reserve amount is $2,500,000- which is currently funded at that level. B. For budgeting purposes, operating expenses are calculated based on the Fund's total expense budget excluding ending fund balances, capital purchases, and the current year's portion of principal paid on outstanding debt. • C. Bond reserves will be created and maintained in accordance with the provisions set forth in the bond covenants. • The City will maintain the self-insurance funds at a sufficient level to provide health care and worker's compensation benefits and to avoid catastrophic loss. Procedures for collecting delinquent accounts. The City policy regarding the collection of water and wastewater rates is determined by the following sequence of events. v 1. An account billed is given 30 days to pay. 2. After thirty days a delinquency notice is sent to the customer to pay or arrange to pay within 10 days. At this time services may be disconnected without further notice. 3. Within the 10 -day notice period the customer is telephoned to give another warning to pay or arrange to pay. v 4. If the customer has no phone number, the City delivers a door- hanger to the account address with instruction to pay or arrange to make payment within 24 hours or services will be disconnected. 5. If the customer has not made a payment or an arrangement to pay within this time period, the sen=ice is eligible for service disconnection. Stormwater charges are assessed to parcel owners on an annual basis. As part of an interlocal agreement_ Clallam County provides billing and collection of stonmvater assessments on behalf of the City. These revenues are then remitted to the City on a monthly basis. -2-5' P120391 -DO-R2039 1 ZA2 Water, Wastewater and Stormwater Fund Statement of Revenues, Expenses and other Changes in Fund Equity For the Fiscal feats Ended December 31 Operating Revenues Charges for Service - Water Charges for Service - Sewer Charges for Service - Stomiwater Miscellaneous Revenues Total Operating Revenues Operating Expenses Operation and Maintenance Takes Administrative and General Depreciation Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Interest Income Interest Expenses Grants Gain (loss) on sale of capital assets Bond premiums Debt Issuance Income (Loss) before Operating Transfers Operating Transfers Capital contributions and grants Operating Transfers In/(Out) (1) Net Income (Loss) Add depreciation on capital assets acquired by capital grants Net Increase (Decrease) in Retained Earnings Fund Equity Be2innin.of Year Prior Period Adjustment Increase in Contributions Contributed Capital from Grants Fund Equity at End of Year Audited Audited Audited Audited Audited 2009 2008 2007 2006 2005 S 4,949;671 S 4,614,795 S 4,464,31.3 $ 3,928,124 S 3,273,761 5,915,523 5,974,532 5,174,164 4,614;642 4,026,495 730,022 710,075 356,411 438,481 343,667 7,980 13,295 77,304 61;470 84,279 11,603,196 11,312,697 10,072,192 9,042,717 7,728,202 3,544,248 3,432,664 1,487,598 1,239,768 2,165,555 2,0447133 2,434,801 2,262,333 9,632,202 8,978,898 1,970,994 2,333,799 465,219 (419,947) 661,717 (16,401) 3,019,665 1,111,550 1,832;157 1 101 1 ;A 1,916,666 478,091 (17,252) 5,994 3,291,884 951,564 1;593;179 1,914,264 7,750,891 1,291,826 2.842.322 804,401 1 523,872 1,952,307 7,122,902 605,300 306,911 199,161 (15,887) (49,146) (1,078) (84,145) - 29,395 2,896,016 2,016,266 2,979,115 2,383,499 1,581,772 3,596,581 5,420 - 153,069 - - 7,630,198 (306,259) (549,250) (135,522) 467,201 9,651,884 2,672,856 1,987,318 1,446,250 4,063,782 267,814 267,814 267,814 267,814 267,814 9,919,698 2,940,670 2,255,132 1,714;064 4,331,596 52,578,070 48,468,444 42,964,816 40,667,262 36,132,904 - - (88,385) - - 194,154 1,436,770 3,604,694 851,306 470,576 (267,814) (267,814) (267,814) (267,814) (267,814) S 62,424,108 $ 52,578,070 S 48,468,444 $ 42,964,816 S 40,667,262 (1) In 2009, the City began to include water treatment plant funds as part of the Water System. Previously these funds were accounted for in a special revenue fund. Source: The Cite -26- P:Q0391_DOM0391_2A2 e �11 • • r� Water, NVastewater and Stormwater Fund Comparative Balance Sheet Assets For the feats Ended December 31 Assets Current Assets: Cash and Equity in Pooled Investments Net Receivables Assessments Interest Accounts Due from Other Governments Inventory (1) Total Current Assets Other Assets: Special Assessment Deferred Deferred Atnount on Refunding Total Other Assets Restricted Assets: Cash and Cash Equivalents for: Combined Sewer Overflow (2) Water Treatment Plant Operations (3) Debt Service Deposits Rate Stabilization (2) Total Restricted Assets Property, Plant and Equipment Land and Land Improvements Buildings Improvements Utility plant in Service Furniture, Machinery and Equipment Asset Held for Resale Construction in Progress Total Property, Plant and Equipment Less Accumulated Depreciation Net Property, Plant and Equipment Deferred Charges: Unarnortized Bond Discount Total Assets Audited audited Audited Audited Audited 2009 2008 2007 2006 200 S 14,967,026 S 9,305,376 S 6,821,507 $ 5,171,748 S 6,034,088 5,343 8,129 12,295 11.939 19,531. 117,976 71,926 61;978 44,431 22,195 1,541,167 1,416;949 1,258,056 1,160,069 1,271,340 101,913 74,692 864.667 372;842 142,578 193,167 195,686 241,875 216,463 198.519 16,926,592 11,072,758 9,260,378 6,977,492 7,658251 - 6,596 16.238 26,870 57.644 668.112 594,941 632,125 669,309 706,492 668,112 601,537 648,363 696,179 764,136 - 1,992,039 1,152,188 539,527 - 6,818,562 - - - - 1.100,000 1;017,218 3S9,424 389,424 389,424 2,125 2,125 1,000 750 688 1;130,000 1,130,000 1,130,000 1,318,850 7,920,687 4,141,382 2,672 612 2,059,701 1,708,962 543,752 543,752 543,752 497,746 497,746 1,251,473 1251,4 73 1.251,473 1;230,082 1,230,082 34,461,305 34,461,305 34,4681200 33,788,399 30,988,362 57,315,683 48,381,956 47,634,609 46,672,882 41,767,428 21742,667 2,604,079 2,655,304 2,637,082 719,391 - - 46.007 46,007 2,470,533 10,419,066 6,749,526 2,129,765 7,995,027 98,785,413 97.661,631 93,302,864 57,001,963 83,244,043 (42,704,341) (40,625,562) (38,421;349)(36229,194) (34,314,931) 56;081,072 57,036,069 54,SS1515 50,772,769 48,929,112 239,947 192,010 203;092 214,174 225,255 S 81,836,411 S 73,043,756 S 67.665,960 S 60,720,315 S 59,315,716 (1) Inventory includes water meters, pipes and other supplies of the System. (2) Under guidelines from Council, rate stabilization and combined sewer overflow funds are considered assigned fund balance, rather than restricted. Assigned fund balances for rate stabilization is $1,130,000 and for combined sewer overflow_. S3.4 million. (3) Water treatment plant firnds are now included as part of the Water System. Previously these funds were accounted for in a special revenue fund. Source: The Cit)- -2 7- P:1P0391 _D01120391 _2A2 Water, Wastewater, and Stormwater Fund Comparative Balance Sheet Liabilities and Fund Equity For the Years Ended December 31 Liabilities and Fund Equiq, Current Liabilities Accounts Payable Due to Other Funds Due to Other Governments Wages Payable Current Portion of Compensated Absences Interest Payable Current Portion of Long -Teri Debt Customer Deposits Payable Other Current Liabilities Total Current Liabilities Long -Term Liabilities Non-current Compensated Absences Deferred Revenue Unamortized Bond Discount/Premium Long -Tenn Debt Total Long -Term Liabilities Total Liabilities Fund Equity Contributed Capital Contributed Capital from Grants Retained Eamings - Unreserved Total Fund Equity Total Liabilities and Fund Equip, outrrce. 1 tie k -11j, Audited Audited Audited Audited Audited 2009 2008 2007 2006 2005 $ 347;781 S 127,248 S 613,110 S 258,910 S 527,944 51,970 45,326 48,293 41,593 34,492 118,015 115,173 86,971 24,549 16,050 50,045 78,290 63,932 52,661 49,711 47,132 52,171 43,486 99,592 85,017 103,707 120J34 117,188 117,977 123,699 1,323;690 1,183,427 1,150,765 425,000 410,000 2,750 2,125 1,000 750 688 6.22)6 - - 655,259 1,237 S 2,051,316 S 1,723,894 S 2,124,745 S 1,676,291 S 1,248,838 137,008 140,016 12 3, 660 104,937 108,639 - 6,596 16,238 26,870 57;644 47,320 49,833 52,3345 54,858 57,370 17,176,661 18,545,351 16,880,528 15,892,543 17,175,966 17, 360,989 18,741, 796 17,072, 771 16,079,208 17,399,619 19,412,305 20,465,690 19,197,516 17,755,499 18,648,457 8,360291 8,360,291 8,360,291 8,360,291 8,360-291 7216,680 7,216,680 7216,680 7,216,680 7,216 680 46.847,135 37;001,095 32,891,473 27,387,845 25,090,289 62,424,106 52,578,066 48,468,444 42,964,816 40;667,260 S 81,836,411 $ 73,043,756 S 67;665,960 $ 60,720,315 S 59,315.717 -28- PV0391 D0TR20391_2A2 El is • • Water, VVasteivater and Stormwater Fund 2009 and 2010 Operating Budgets Summary of Revenues and 'Expenses For Fiscal fears Ended. December 31 -29- W:1iQ345 C3p112033'i 2A2 2009 2010 Revenue Operating Revenues -- mater S 4.954,700 5,433,500 Operating Revenues — Wastewater 6,064,100 6,596,700 Operating Revenues — Stormwater 714,000 700,000 Interest on. Investment 342,478 261,450 Construction Contribution 376.1100 - Other Revenue 446.€113 256.21.7 Total Revenue 12.889.291 13.247.867 Expenses by Object Personnel (1) 1031,498 2,232,672 Supplies 641,300 397,350 Charges for Ser%ices 4,179,512 4302,9116 Utility Taxes (2) 1,5161791 1,621,014 Capital Outlay 171.750 114,000 Total. Expenses 8.540.851 8,867.942 Operating Income (Expense) 4348.440 4,379,925 Non -Operating Expenses. Transfer to Economic Development (60,000) (60,000) Transfer to Capital Improvement Fund (189,167) (78,5011) Transfer to 2005 General Obligation Bond. Fund (Western Urban Growth Area improvements) (181,1 l l) (181,111.) Construction 'Projects (3,447,040) (5,309,500) Debt Service (1,824.015) (2,01.7.929) Total Non -Operating ,Expenses (5,701:333) (7.647,040) Revenues less Expenses (1,352,893) (3,267,11.5) Bond Proceeds - 4301,000 Transfer from Other Funds 39,525 39,342 Net. Increase (Decrease) In Unreserved Cash (1,313 368) 1.,073227 Cash designated for rate stabilization 1,130,0011 1,1.30:004 Unreserved Cash Balance S 6.596M8 $ 5;329-205 (1) Personnel increases are due to a 1.2° o increase in Public Employees Retirement. System retirement rates, a. 2% cost -of -living adjustment=, merit increases and a 10% increase in Association of Washington. Cities insurance rates. (2) Increase in Utility Taxes is based on Operating Revenues due to rate increases in water and wastewater utility services. Average increases for each service are 8.5%.. based on a cast of service study that was completed and approved in 2009. Source: The Cite -29- W:1iQ345 C3p112033'i 2A2 Water, Wastewater and Storm%eater Utility Historical Coverage from Operations For Fiscal fears ,Ended December 31 Operating 'Revenues Charges for Service Miscellaneous Revenues Total Operating Revenues i Other Income InterestIncome Contributions in ,did of Construction Total Other Income. Operating Expenses Operation and. Maintenance Taxes other than City taxes Total Operating Expenses Transfers Operating Transfers W(Out) Net Revenue ,available for Debt. Service. Parity Debt Service DOE Loan (1). 2404 Bonds (2) 2403 Bonus 1998 Bonds (2) Total Parity Debt Service Total Subordinate Lien Debt Service Coverage of Parity Debt Service Coverage of Total Debt Service • 2009 2008 2007 2006 2045 511,595,216 511,299,402 5 9,994,888 S 8,981,+47 $ 7,643,923 7,980 13,295 77,304 61;470 84,279 11,603,196 11 312.697 14,471192 9,042;71.7 7,728;202 302,478 661,71.7 475,857 291,464 1.99,1.61 199,574 1,436;770 3,757,763 851,306 470,576 502,052 2,998,487 4,2.33,620 1,142,770 669,737 4,709,803 5,476,797 4,851,822 4,885_063 4,366,1.94 346.610 337,798 307,590 269,052 224,685 6,056,413 5,814.595 5,159,412 5,1.54,115 4,590,879 (167,489) (73,06;259) (549,25(}) (132,522) 467,201 S 5,881,346 $ 7.2.90,330 $ 8,597,150 54,898,850 $ 4,274,261. 5 0 $ 129,808 $ 259,61.6 ,$ 259,6.16 _... . 5 219,616 .,170;969 0 0 . . 0 0 284,708 2.88,408 2.85,595 257,895 2.85,095 521,795 692,978 695,373 692,1.78 688,378 S 977,473 51,1.1.0,794 $1.240.589 $1,239,689 $1,233,089 $ 728,428 S 615;442 S 478 572 S 483,1.07 S 465,22'7 6.02 6.56 6.93 3.95 3.47 3.45 4.22 5.00 2.84 2.52 (1) Mate Revolving Fund 'Loan from the Department of Ecology was fully paid in 2008. All remaining State loans are junior lien. (2) The 2009 Bonds refunded the 1998 Water and Wastewater Bonds. Source: The Cit.= THE CITY The City is a non -charter code city incorporated in 1890_ The City encompasses an area of approximately 14.7 square miles in northwester. Clallam County along U.S. Highway 101 on the northern shore of Washington's Olympic Peninsula. The Cit;- had an estimated population of 19.380 in 201.0_ The City operates under the laws of the State of Washington applicable to charter code city with a council-manager form of government. City elected officials consists of seven council members. The registered voters of the City elect the Council members to four-year terms. Council members senTe staggered terms- From its members, the City Council elects the Mayor and the Deputy Mayor, who each serve nvo-year terms. The Mayor and Deputy Mayor each have an equal vote on the Council. The Mayor presides over all Council meetings and represents the City at ceremonial events. The Council is the legislative authority of the City and is responsible, amon¢ other things. for passing ordinances and resolutions, holding public hearings, adopting the budget, appointing committees, and adopting general policies and goals for the City. The Council appoints a City Manager who senzes as chief -30- R:QO 41 DQT20391 2R2 0 • administrator of the City and oversees the entire city government under the direction and policies of the Council. All City department directors report to the City Manager. The City is a general-purpose government and provides public safety, fire prevention; street improvement, parks and recreation, health and social services, and general administrative services. In addition the City operates a municipal electric utility. Other local governments provide public education and library services. The Council holds regular meetings twice a month and special meetings as needed. All meetings are open to the public as provided by law and agenda items are prepared in advance. Brief resumes of the current Mayor_ Deputy Mayor. Council members and selected administrative officials follow. Principal City Officers Current members of the Council are: • Dan Di Guilio, .iv,16yor. Mr. Di Guilio joined the City Council in January 2008. After serving three years in the United States Arany, Mr. Di Guilio attended Western Washington University. Mr. Di Guilio has worked as a Law and Justice Planner at Grays Harbor Regional Planning Commission; the Director of Pacific Transit System from 1980-1985; the General Manager of Clallam Transit System in 1995, retiring from that position in 2005. From 2007 to 2009, he worked as Director of Housing Improvements for Olympic Community Actions Programs. Mr. Di Guilio has served on numerous boards and commissions including the Juvenile Dispositions Standards Commission, the Washington State Transit Improvement Board, and the Pacific County Regional Planning Council. Don Per13v, Deputy Mawor. IVir. Perry and his family moved to Port Angeles in 1985 and worked in the insurance industry as an agent and broker for over 30 years. Over the years he has been a member of the Port Angeles Lions Club, Elks Club, Chamber of Commerce, YMCA, Clallam County Historical Society; and charter member of the Clallam County Task Force for Youth at Risk: serving on many of these boards. Deputy, Mayor Perry has also served on the Port Angeles Downtown and Port Angeles Business Associations. Brad Collins, Councilmember. Mr. Collins was appointed to fill a vacancy as a result of a resignation until the next general election in 2011. He is retired from a 40 -year career in public service, including 15 years with the City of Port Angeles as the Community Development Director. He is a member of the Clallam County Historical Society, the Port Angeles Fine Art Center; the Friends of Olympic National Park, the North Olympic Land Trust, the University of Washington Department of Urban Design & Planning Professionals Council, and many State and National Professional Associations. Patrick Downie, Councilmember. Councilmember Downie received a Bachelor of Arts decree in Sociology and a minor in Urban Planning from California State University before moving to Port Angeles in 1974. He owns Royal Victorian Motel, a Baskin Robbins Ice Cream store, and has been involved with commercial real estate and senior housing development for 15 years. Mr. Downie has been the Program Coordinator for Catholic Community Services/Volunteer Services of Clallam County, involved in civic and community services including the President of Paint the Town, former Chair of the Port Angeles Planning Commission, past Board President of the North Olympic • Peninsula Visitor & Convention Bureau, and the Regional Transportation Planning Organization. -31- 8:20391 D0T120391 2A2 Elected Officials Name Position Term Expires Dan Di Guilio Council Member and Mayor 12131/2011 Don Perry Council Member and Deputy Mayor 12/31/2011 Brad Collins Council Member 12/3112011 Patrick Downie Council Member 12/31/2013 Cherie Kidd Council Member 12/31/2011 Max Mania Council Member 12/31/2013 Brooke. Nelson Council Member12/31,•'2013 • Dan Di Guilio, .iv,16yor. Mr. Di Guilio joined the City Council in January 2008. After serving three years in the United States Arany, Mr. Di Guilio attended Western Washington University. Mr. Di Guilio has worked as a Law and Justice Planner at Grays Harbor Regional Planning Commission; the Director of Pacific Transit System from 1980-1985; the General Manager of Clallam Transit System in 1995, retiring from that position in 2005. From 2007 to 2009, he worked as Director of Housing Improvements for Olympic Community Actions Programs. Mr. Di Guilio has served on numerous boards and commissions including the Juvenile Dispositions Standards Commission, the Washington State Transit Improvement Board, and the Pacific County Regional Planning Council. Don Per13v, Deputy Mawor. IVir. Perry and his family moved to Port Angeles in 1985 and worked in the insurance industry as an agent and broker for over 30 years. Over the years he has been a member of the Port Angeles Lions Club, Elks Club, Chamber of Commerce, YMCA, Clallam County Historical Society; and charter member of the Clallam County Task Force for Youth at Risk: serving on many of these boards. Deputy, Mayor Perry has also served on the Port Angeles Downtown and Port Angeles Business Associations. Brad Collins, Councilmember. Mr. Collins was appointed to fill a vacancy as a result of a resignation until the next general election in 2011. He is retired from a 40 -year career in public service, including 15 years with the City of Port Angeles as the Community Development Director. He is a member of the Clallam County Historical Society, the Port Angeles Fine Art Center; the Friends of Olympic National Park, the North Olympic Land Trust, the University of Washington Department of Urban Design & Planning Professionals Council, and many State and National Professional Associations. Patrick Downie, Councilmember. Councilmember Downie received a Bachelor of Arts decree in Sociology and a minor in Urban Planning from California State University before moving to Port Angeles in 1974. He owns Royal Victorian Motel, a Baskin Robbins Ice Cream store, and has been involved with commercial real estate and senior housing development for 15 years. Mr. Downie has been the Program Coordinator for Catholic Community Services/Volunteer Services of Clallam County, involved in civic and community services including the President of Paint the Town, former Chair of the Port Angeles Planning Commission, past Board President of the North Olympic • Peninsula Visitor & Convention Bureau, and the Regional Transportation Planning Organization. -31- 8:20391 D0T120391 2A2 Cherie Kidd. Councilmember. Ms. Kidd was elected to the City Council in 2008. Ms. Kidd is a native of Port O Angeles where she attended Peninsula College. She has worked for several Fortune 500 companies such as First Financial Management; Sprint, KPMG and Egon Zehnder International. She has her own company including Success Seminars speaking tours and a mini -storage facility. Councilmember Kidd is an active member of the Port Angeles Business Association, the Port Angeles Regional Chamber of Commerce, Soroptimist International, and serves on the boards of the Clallam County Historical Society, Olympic Medical Center Foundation, Salvation Anny, and the Underground Preservation Foundation. Max Mania, Councilmember. Councilmember Mania has studied sociology and criminology, is a playwright, performer, director and visual artist. Mr. Mania has served on boards of the Friends of the Port Angeles Fine Arts Center. the Port Angeles Community Players, and is founding board member of the Port Angles Arts Council. He has worked as a high-tech public relations agent, and as a communications specialist for a company providing emergency support services to client companies such as Boeing, Paramount Pictures, and Pfizer. He is also a professionally trained banker. Brooke Nelson, Councihnember. Councilmember Nelson has worked as a Bank. Manager, Corporate Trainer and is currently a full time Realtor and designated Ecobroker. She is an active member of Built Green of Clallam County; and serves on the board of directors for the North Peninsula Building Association as State Director. Ms. Nelson represents Port Angeles on the Sheriffs Advisory Council and teaches the first-time homebuyers class on behalf of the Washington State Housing Finance Commission. Administrative Staff Kent Myers, City Manager. Mr. Myers has served as City Manager since December 2008. Prior to-sening.the City; - Mr. Mvers served as City Manager for Hot Springs, Arkansas; City Manager for Casa Grande, Arizona, and City Manager for Converse; Texas. Mr. Myers has a Bachelor of Science degree in criminal justice from the University of Texas at Arlington and a Masters Degree in Public Administration from Texas Christian University. O Fvonne Ziontkowski, Director of Finance. Ms. Ziomkowski has served as the City's Finance Director and City Treasurer since Tune 1999. Prior to her current position, she served for ten years as the City's Accounting Manager/City Treasurer. Ms. Ziomkowski previously worked in financial analysis grid cost accounting in South Africa and Texas. Her experience includes budget management, utility rate development, financial management; strategic planning, grant management, investment portfolio management. and public relations. Ms. Ziomkowski holds the designations of Professional Finance Officer from the NNTashington Finance Officers Association, and is a Certified Municipal Finance Administrator as designated by the Association of Public Treasurer's of the United States and Canada. She currently serves on the Executive Board of Directors of the Washington Finance Officers Association, holding the position of Vice President. She is also the past President of the Washington Municipal Treasurers Association. Ms. Ziomkowski holds an M.A. in economics from the Technical University of Szczecin, Poland. Glenn A. Cutler, Director of Public Works and Utilities; is a Registered Professional Engineer in the States of Washington and Georgia, and has 38 years of experience in managing public works and utility functions for the United States Navy and the City of Pon Angeles. Labor Relations The City employs 257 full-time, part-time and temporary employees. Approximately 82% of the City employees are represented by four bargaining units and are employed under provisions of negotiated contracts. The City enters into written bargaining agreements with each bargaining organization. Agreements contain provisions on such matters as salaries; vacation, sick leave, medical and dentaf insurance, working conditions, and grievance procedures. The following table describes the bargaining units representing various City employees. 0 -32- P:Y20391_D0T120391 2A2 Bargaining Unit Number of Employees Contract Expiration 'date AFSCME Local 1.619 114 1.213111.0 IBE«i Local 997 20 12/3U1 0 IAFF Local 656 21 12!31!10 Teamster Local 589 (sworn officers) 31 12/31! 10 Teamster Local 589 (support unit) 27 12!31!1.0 The City strives to be fair with all employees, consistent with all applicable State laws, to ensure equity., and promote labor relation policies mutually beneficial to management and employees. The City negotiates labor contracts through a management team. Pension System. Pensions for substantially all full-time and qualifying part-time. City employees are provided through the Washington. State Department of Retirement System by either the Public Employees Retirement System ("PERS-) or the Lav Enforcement Officers and Firefighters System ("LEGFF"), both of which are cost-sbaring, multiple -employer public employee retirement systems. Contributions to the systems by both employee and employer are based upon actuarial. percentages established by the State of Washington, City officials have stated that all required contributions have been made to these plans and there is no unfunded liability on the part of the City. Risk Management The Cit; of Port. Angeles is a member of the Washington Cities Insurance Authority ('WCIA"). Utilizing Chapter 48.62 RCW (self-insurance regulation) and Chapter 39.34 RCW (Interlocal Cooperation -Acty WCIA was established on January '1. 1981. WCIA was created for the purpose of providing a pooling mechanism for jointly purchasing insurance, jointly self-insuring, and/or jointly contracting for risk management services. WCIA has a total of 125 Members. New members initially contract for a three-year term, and thereafter automatically renew on an annual basis. A one- year withdrawal notice is required before membership can be terminated. Termination does not relieve a former member from its unresolved loss history incurred during membership, Liability coverage is w=ritten on a per occurrence basis_ The City is one of the large deductible cities with S100,000 - Coverage 100,040.Coverage includes general, police professional_ public officials' errors or omissions, stopgap, and general liability. Coverage limits include a $4 million per occurrence inthe primary layer, $1 million per occurrence in the excess layer, $5 million per occurrence in the reinsured layer subject to annual aggregates related to public official liability of 515 million, and S10 million per occurrence in the second excess layer for a total limit of $20 million per occurrence. The second excess layer is insured by the purchase of reinsurance and insurance_ The Board of Directors determines the limits and terms of coverage annually. Insurance coverage for property, automobile physical damage, fidelity, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles apply by type of coverage. Property insurance and auto physical damage are self-funded from the members' deductible for all perils other than flood and earthquake; and insured. above that amount by the purchase of reinsurance. Property insurance has a $5,000 deductible, crime and fidelity a $10,000 deductible, large fleet rolling stock over $75,000 value has a deductible of 525,,000. In-house services include risk management consultation, loss control field services, claims and litigation administration, and loss analyses. WCIA contracts for the claims investigation consultants for personnel issues and land use problems, and insurance brokerage. WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis.. as determined by an outside, independent actuary. The assessment covers loss, loss adjustment= and administrative expenses_ As isoutlined in the interlocal, WCIA retains the right to additionally assess the membership for any funding shortfall- _33- P aaaat oflnzoaaa 2v2 An investment committee, usin¢ investment Brokers, produces additional revenue by investment of WCIA's assets in financial instruments that comply with all State guidelines- A Board of Directors governs WCIA, which is comprised of one designated representative from each member- The Board elects an .Executive Committee and appoints a Treasurer to provide general policy direction for the organization. The WCLA 'Executive Director reports to the Executive Committee and is responsible for conducting the day-to-day operations of the `CIA. :411 funds of the City participate in the self-insurance programs and make payments to the self-insurance fund based. on estimates of the amounts needed to pay excess insurance and related risk management and service costs, prior and current year claims paid in the current year, and to maintain adequate reserves for catastrophic losses in a given year. As of December 31= 2009= the City had reserves of 51,129..329 in the Self -Insurance fund- 'Reported claims liabilities are based on the requirements of GASB Statement 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated- 1'he City self -insures its workers' compensation liability and buys excess insurance to cover possible large liabilities The City's insurance programs for workers' compensation_ general liability, and health plan coverage (dental. medical and vision benefits) are managed by the Human. Resources Office. The City also uses professional consultants from time to time for advice in financial aspects, legal matters, andclaims administration. The City has passed an ordinance for the risk management program. The following is-a!summary of the City's coverage: 1- The City is self-insured for workers' compensation and administers the program through a third - party administrator. The City meets all of the State requirements for funding and reserves and is periodically audited by the State Department of Labor and Industries for compliance. 2. Employee health benefits are purchased through insured plans; i.e. medical, vision, dental,. prescription drugs, employee assistance program services; life insurance, and long-term disability coverage. 3_ General liability is insured through a municipal pooi. Washington Cities Insurance Authority (X CIA). with a deductible of 5100.000 per incident. The City, is protected up to $20 million- WCIA provides claims adjusting services, assists with setting reserves_ pre -defense claim review, counseling, training, and education. The City purchases property, boiler, machinery, and fidelity insurance through W CIA- The City's insured property value is $89,840,510 and large equipment with insured value at 55.1:38,555. The City maintains approximately '5125,000 for liability claims activity per year based on historical cost information plus $50,000 for legal services and adequate reserves in the eventof unexpected claims. Liability coverage includes general, automobile_ police professional, public, employee errors and omissions, and other liabilities_ Insurance coverage is up to 520 million for general liability. The WCIA :Board of Directors determines the limits and terms of coverage annually. 4. There we re no reductions in insurance coverage from the prior year. Financial Information Signi icanr _accounting Policies- The financial statements of the City of Port Angeles have been prepared in conformity with generally accepted accounting principles ('GAAP") as applied to state and local governmental units The Governmental. Accounting Standards Board ("GASB") is the accepted standard setting body for establishing -34- RT0391_noT120391 2A2 • governmental accounting and financial reporting principles. The financial statements have incorporated all applicable GASB pronouncements as well as Financial Accounting Standards Board ("FASB") Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on accounting procedures issued on or before Nov -ember 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. A. Reporting Entity. The City is a general-purpose government and provides police, fire, emergency medical service, water and electric distribution, water treatment, wastewater collection and treatment, sanitation, stormwater, solid waste collection, solid waste transfer station, street maintenance, planning and zoning, permits and inspection, park and recreation, customer service, and general administrative services. B. As required by the generally accepted accounting principles, the financial statements present the City of Port Angeles as the primary government. The City has one discretely presented component unit, the Port Angeles Harborworks Public Development Authority, which is an independent legal entity that was established in 2008 to focus on re -development of the former Rayonier mill site. The PDA is exclusively responsible for its own debts, obligations and liabilities. C. Government-TYide and Fund Financial Statements. The City's basic financial statements include both government -wide financial statements (reporting the City as a whole) and find financial statements (reporting the City's major funds). Both the government -wide and the find financial statements categorize activities as either governmental or business -type. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. D. Fund Financial Statements. The fund financial statements display information at the individual • fund level and are, in substance, very similar to the financial statements presented prior to the implementation of GASB 34. Each fund is accounted for by a separate set of self -balancing accounts that comprise its assets, liabilities, fand equity, revenues, and expenditures or expenses as appropriate. Funds are classified and summarized as governmental, proprietary, and fiduciary. E. Proprietary Funds. Proprietary funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or non-current) associated with their activity are included on their balance sheets. Proprietary fund operating statements present increases (revenues and gains) and decreases (expenses and losses) in net total assets. Proprietary fund measurement focus is based upon determination of net income, financial position, and cash flows. The proprietary funds disclose changes in cash position by a separate statement that presents their operating. financing and investing cash flow activities. Proprietary funds distinguish operating revenue and expenses from non-operating items. Operating activities on the income statement represent user fees, payments to vendors and employees who provide services. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. The City applies all applicable FASB pronouncements in accounting and reporting for its proprietary operations except those inconsistent with GASB pronouncements. Enterprise Funds. Enterprise funds account for utility operations that are self -supported through user charges. The utilities are financed and operated like a private business enterprise which requires periodic determination of revenues earned, expenses incurred; and net income for capital maintenance, public policy, management control, and accountability. ibaterITYasteil!ater/Stormit,ater Fund - accounts for revenues and expenses related to providing water, wastewater and stormwater services to City residents. All activities necessary to provide such services, including administration, • financing, capital improvements, and related debt service are accounted for in this fund. -35- Pi20391 D0r120391 2A2 Basis of Accounting. The government -wide financial statements, the proprietary funds financial statements, and the O fiduciary funds financial statements are presented on a full accrual basis of accounting with an economic resources measurement focus. An economic resources measurement focus concentrates on the net assets of an entity or fund. All transactions and events that affect the total economic resources (net assets) during the period are reported. An economic resources measurement focus is inextricably connected with full accrual accounting. Under the full accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash inflows and outflows. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements, including time requirements, have been satisfied. Resources that are received before the eligibility requirements are met are considered to be advances from the provider and are recorded as deferred revenue by the City. Certain costs in the utility funds are deferred and expensed in future years as the utility rates recover these costs. Revenues of the utilities are based on service rates authorized by the City Council, and are determined by cyclical monthly billings to customers. Amounts not earned at year-end are reported as deferred revenues. Earned revenues that have not been billed are accrued_ The Budget Process. The City's budget process and procedures are consistent with the process and calendar as set forth under chapter 35A.33 RCW. Prior to October 1, City department directors present estimates of revenues and expenditures. The Finance Director. working in conjunction with the City Manager, Mayor and City Council, makes deletions, additions or modifications to the estimates and prepares a preliminary budget that is officially filed by November 1, when it is made available to the public. The Council is then required to set public hearings and adopt a final budget no later than December 31. Within thirty days of adoption, the final budget is available to the public. The Finance Director is authorized to transfer budgeted .amounts between departments (within any fund/object- classes withirn departments); however, any revisions that alter the total expenditures of a fund must be approved by the City Council. Auditing of Cih- Finances. The State Auditor is required to examine the affairs of cities at least once every two years. The examination must include. among other things, the financial conditions and resources of the City. whether the laws and constitution of the state are being complied with, and the methods and accuracy of the accounts and reports of the City. Reports of the auditors examinations are required to be filed in the office of the State Auditor and in the auditing department of the City. The City's last audit was for fiscal year 2009. See APPENDIX C— "THE CITY'S COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009." No significant discrepancies or irregularities were found. LNITIATIVE AND REFERENDU,%l Under the State Constitution, the voters of the State have the ability to initiate legislation and require the Legislature to refer legislation to the voters through the powers of initiative and referendum, respectively. The initiative power in Washington may not be used to amend the State Constitution. Initiatives and referenda are submitted to the voters upon receipt of a petition signed by at least eight percent (initiative) and four percent (referenda) of the number of voters registered and toting for the office of Governor at the preceding regular gubernatorial election. Any law approved in this manner by a majority of the voters may not be amended or repealed by the Legislature within a period of two years following enactment, except by a vote of two-thirds of all the members elected to each house of the Legislature. After two years, the law is subject to amendment or repeal by the Legislature in the same manner as other laws. In recent years there has been an increase in the number of initiatives and referenda filed in Washington, including state initiatives targeting property taxes imposed by local jurisdictions. The City cannot predict whether this trend will continue, whether any filed initiatives will receive the requisite signatures to be certified to the ballot, and whether such initiatives will be approved by the voters and, if challenged, upheld by the courts. -36- P:Q0391_DOT20391_2A2 0 0 • TAX MATTERS In the opinion of Bond Counsel, interest on the Bonds is excludable from gross income for federal income tax purposes under existing law. Interest on the Bonds is not an item of tax preference for purposes of either individual or corporate alternative minimum tax and is not included in adjusted current earnings for purposes of the federal alternative minimum tax imposed on certain corporations. Federal income tax law contains a number of requirements that apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the use of proceeds of the Bonds and the facilities financed with proceeds of the Bonds and certain other matters. The City has covenanted to comply with all applicable requirements. Bond Counsel's opinion is subject to the condition that the City comply with the above -referenced covenants and; in addition, will rely on representations by the City and its advisors with respect to matters solely within the knowledge of the City and its advisors, respectively. which Bond Counsel has not independently verified. if the City fails to comply with such covenants or if the foregoing representations are determined to be inaccurate or incomplete, interest on the Bonds could be included in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds, regardless of the date on which the event causing taxability occurs. Except as expressly stated above, Bond Counsel expresses no opinion regarding any other federal or state income tar consequences of acquiring, carrying_. owning or disposing of the Bonds. Owners of the Bonds should consult their tax advisors regarding the applicability of any collateral tax consequences of owning the Bonds, which may include original issue discount, original issue premium, purchase at a market discount or at a premium taxation upon sale, redemption or other disposition. and various withholding requirements. Prospective purchasers of the Bonds should be aware that ownership of the Bonds may result in collateral federal • income tax consequences to certain taxpayers, including, without limitation, financial institutions, property and casualty insurance companies, individual recipients of Social Security or Railroad Retirement benefits, certain S corporations with "excess net passive income," foreign corporations subject to the branch profits tax, life insurance companies and taxpayers who may be deemed to have incurred or continued indebtedness to purchase or carry or have paid or incurred certain expenses allocable to the Bonds. Bond Counsel expresses no opinion regarding any collateral tax consequences. Prospective purchasers of the Bonds should consult their tax advisors regarding collateral federal income tax consequences. V • Payments of interest on tax-exempt obligations, such as the Bonds, are in many cases required to be reported to the Internal Revenue Service (the "IRS"). Additionally, backup withholding may apply to any such payments made to any owner who is not an "exempt recipient" and who fails to provide certain identifying information. Individuals generally are not exempt recipients, whereas corporations and certain other entities generally are exempt recipients. Bond Counsel's opinion is not a guarantee of result and is not binding on the IRS; rather, the opinion represents Bond Counsel's legal judgment based on its review of existing law and in reliance on the representations made to Bond Counsel and the City's compliance with its covenants. The IRS has established an ongoing program to audit tax-exempt obligations to determine whether interest on such obligations is includable in gross income for federal income tax purposes. Bond Counsel cannot predict whether the IRS will continence an audit of the Bonds. Owners of the Bonds are advised that, if the IRS does audit the Bonds, under current IRS procedures, at least during the early stages of an audit, the IRS will treat the City as the taxpayer, and the owners of the Bonds may have limited rights to participate in the audit. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome. Qualified Tax -Exempt Obligations The City has designated the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3)(B) of the Code. -37- P:120391 DOTt20391_2A2 LEGAL NL4,TTERS Opinion of Counsel Legal matters incident to the authorization, issuance, and sale of the Bonds by the City are subject to the approving legal opinion of K&L Gates LLP, Seattle, Washington, Bond Counsel. A form of the legal opinion of Bond Counsel is attached hereto as Appendix B. Litigation There is no litigation pending or threatened in any court (either state or federal) to restrain or enjoin the issuance or delivery of the Bonds, or questioning the creation; organization, existence, or title to office of the City or the proceedings for the authorization, execution, sale and delivery of the Bonds. The City is a parte to lawsuits in its normal course of business, but the City does not believe any of such litigation will have a significant adverse impact upon the financial condition of the City or the System. Enforceability The provisions of the Bonds and the Bond Ordinance constitute contracts between the City and the owners of the Bonds, and such provisions are enforceable by the Registered Owner or owners in a court of competent jurisdiction in the State by mandamus or other appropriate remedy, subject to judicial discretion and the valid exercise of sovereign police power of the State and may be limited by laws affecting the rights of creditors. LLNTITATIONS ON REMEDIES Any remedies available to the owners of the Bonds upon the occurrence of a default under the Bond Ordinance are in many respects dependent upon judicial actions that are in turn often subject to discretion and delay and could be both expensive and time-consuming to obtain. If the City fails to comply with its covenants under the Bond Ordinance or to pay principal of or interest on the Bonds, there can be no assurance that available remedies will be adequate to fully protect the interests of the owners of the Bonds. In addition to the limitations on remedies contained in the Bond Ordnance, the rights and obligations under the Bonds and the Bond Ordinance may be limited by and are subject to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, to the application of equitable principles, and to the exercise of judicial discretion in appropriate cases. The opinion to be delivered by K&L Gates LLP, as Bond Counsel. when the Bonds are issued will be subject to limitations regarding bankruptcy, insolvency and other laws relating to or affecting creditors' rights. A copy of the proposed form of opinion of Bond Counsel is set forth in Appendix B. CONFLICTS OF INTEREST Some or all of the fees of the Underwriter, the financial advisor to the City, and Bond Counsel are contingent upon the issuance and sale of the Bonds. From time to time, Bond Counsel serves as counsel to the Underwriter and the Financial Advisor in transactions unrelated to the issuance of the Bonds. FINANCIAL ADVISOR The City has retained Piper Jaffray & Co., Seattle, Washington, as Financial Advisor to provide recommendations and other financial guidance to the City with respect to the preparation of the Bonds for sale. The Financial Advisor has not audited; authenticated, or otherwise verified the information set forth in this Official Statement with respect to appropriateness, accuracy, or completeness of disclosure of such information. and no guaranty, warranty, or other representation is made by the Financial Advisor respecting accuracy and completeness of information or any other O matters related to such information. 0 -38- P:i20391 DOT20391_2A2 • OTIIER MATTERS Continuing Disclosure Undertaking General. In accordance with Section (b)(6) of Securities and Exchange Commission Rule 1 5c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time (the `Rule"), the City has agreed in the Bond Ordinance to provide or cause to be provided to the Municipal Securities Rulemaking Board ("MSRB") in accordance with the Rule, the following annual financial information and operating data for the prior fiscal year (commencing in 2011 for the fiscal year ended December 31, 2010): (1) Annual financial statements, which statements may or may not be audited, showing end fund balances for the Revenue 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 this Official Statement for the Bonds under the headings "Water, Wastewater and Stotmwater Fund — Statement of Revenues, Expenses and other Changes in Fund Equity" and "Water. Wastewater and Storm -water Utility — Historical Coverage from Operations",- (2) perations'; (2) The principal amount of Parity Bonds and debt service coverage for Parity Bonds; (3) Water, wastewater and stormwater rates; and (4) Number of water, wastewater and stormwater customers of the System. . Items (2) – (4) shall be required only to the extent that such information is not included. in the annual .•. financial statements provided pursuant to (1). • Such annual information and operating data described above shall be provided on or before the expiration of seven months after the end of the City's fiscal year. The City's current fiscal year ends on December 31. The City may adjust such fiscal year by providing written notice of the change of fiscal year to the MSRB. In lieu of providing such annual financial information and operating data, the City may cross-refer to other documents available to the public on the MSRB's Internet website or filed with the Securities and Exchange Commission. • If not provided as part of the annual financial information discussed above, the City will provide the City's audited annual financial statement prepared in accordance with regulations prescribed by the State Auditor pursuant to RCW 43.09.200 (or any successor statutes), when and if available, to the MSRB. Material Events. The City agrees to provide or cause to be provided, in a timely manner, to the MSRB notice of the occurrence of any of the following events with respect to the Bonds, if such event is material: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (7) Modifications to rights of Bondholders; -39- Prt20391 DOT20391 2A2 (8) Bond calls: (9) Defeasances.- (10) efeasances; (10) Release, substitution or sale of property securing the repayment of the Bonds; and (11) Rating changes. Solely for the purposes of disclosure, and not intending to modify this undertaking, the City advises that no property secures repayment of the Bonds. ?Notification Upon Failure to Provide Financial Data. The City has agreed in the Bond Ordinance to provide or cause to be provided, in a timely manner, to the MSRB notice of its failure to provide the annual financial information described above in this section under the subheading "General" on or prior to the date set forth above in such subsection. ETM; Format ,for Filings with the MSRB. Until otherwise designated by the MSRB or the Securities and Exchange Commission, any information or notices submitted to the MSRB in compliance with the Rule are to be submitted through the MSRB's Electronic Municipal Market Access system ("EMMA"), currently located at mm www.ema.srb.org (which is not incorporated into this Official Statement by reference). All notices; financial information and operating data required by this undertaking to be provided to the MSRB must be in an electronic format as prescribed by the MSRB. All documents provided to the MSRB pursuant to this undertaking must be accompanied by identifying information as prescribed by the MSRB. Termirratiorr/1tfodifrcation. The City's.obligations to provide annual financial information and notices of material events shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. The continuing disclosure requirement, and any related provision, shall be null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the effect that those portions of the Rule which require continuing disclosure, are invalid, have been repealed retroactively or otherwise do not apply to the Bonds and (2) notifies the MSRB of such opinion and the cancellation of this requirement. The continuing disclosure requirement may be amended, without the consent of the Bond owners, with an opinion of nationally recognized bond counsel in accordance with the Rule. In the event of any such amendment, 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. hi 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 described above under the subheading "Material Events," and (ii) the annual report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Bond Owner's Remedies Related to Continuing Disclosure Undertaking. The right of any Bond owner or Beneficial Owner of Bonds to enforce provisions of the City's continuing disclosure undertaking is limited to a right to obtain specific enforcement of the City's obligations related thereto, and any failure by the City to comply with the provisions of the undertaking will not be an Event of Default with respect to the Bonds under the Bond Ordinance. 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. Compliance with Existing Undertakings. The City is currently in compliance with its continuing disclosure undertakings relating to prior bonds subject to the Rule. 40 -40- P:i20391_DOT20391 2A2 • Underwriting The Bonds are being purchased by Seattle -Northwest Securities Corporation (the "Undenvriter") from the City at a price of % of par plus accrued interest and will be re -offered at the aggregate price of % of par, subject to the terms of a purchase contract between the City and the Undenvriter (the "Purchase Contract"), The Purchase Contract provides that the Underwriter must purchase all of the Bonds if any are purchased and that the obligation to make such purchase is subject to certain terms and conditions set forth in the Purchase Contract. the approval of certain legal matters by counsel and certain other conditions. The initial public offering prices set forth on the cover hereof may be changed from time to time by the Underwriter. The Under -writer may offer and sell the Bonds into unit investment trusts or money market funds, certain of which may be sponsored or managed by the Underwriter, at prices lower than the public offering prices stated on the cover hereof. Rating As noted on the cover page of this Official Statement, the City has received a rating for the Bonds from Moody's Investors Service (the "'Rating Agency") of "_". The City applied for the rating, and certain information was supplied by the City to the Rating Agencv to be considered in its rating of the Bonds. The rating reflects only the views of the Rating Agency, and an explanation of the significance of the rating may be obtained from the Rating Agency. There is no assurance that the rating will be retained for any given period of time or that the rating will not be reMsed downward or withdrawn entirely by the Rating Agency if. in its judgment, circumstances so warrant. Any such downward revision or withdrawal of the rating will be likely to have an adverse effect on the market price of the Bonds. The City has no obligation to take any action, other than file a material event notification, if the rating of the Bonds is changed, suspended or withdrawn_ Official Statement Certificate • At the time of delivery of the Bonds, one or more officials of the City will furnish a certificate stating that to the best of his or her knowledge, this Oficial Statement, as of its date and as of the date of delivery of the Bonds, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained herein, in light of the circumstances under which they were made, not misleading. Statements in this Official Statement, including matters of opinion, whether or not expressly so stated, are intended as such and not as representation of fact. This Official Statement is not to be construed as a contract or agreement between the City or the Underwriter and the purchasers of the Bonds. The preparation and distribution of this Official Statement has been authorized by the City. CITY OF PORT ANGELES, WASHINGTON By: City Manager • 41- PA20391 D0TP20391 2A2 APPENDLX A DEMOGRAPHIC AND ECONONLIC LNFORMATION P:120391 DUR20391 W e 0 • APPENDIX A DEMOGRAPHIC AND ECONOTMIC INFORMATION The tables that follow provide economic and demographic information about the City and the surrounding area. Major Employers Within the Cite of Port Angeles • Source: Washington State Office of Financial Management intercensal population estimates A -I P:Q0391 D0T20391 2A2 Number of Name of Employer Service or Product Employees (1) Olympic Medical Center Medical services 1,042 Westport Shipyard Yacht Sales 550 Peninsula College Education 485 Clallam County Government 484 Port Angeles School District Education 475 City of Port Angeles Government 257 U.S. Coast Guard Military 255 Nippon Paper Industries Recycled paper &; pulp 220 Olympic National Park Government 196 First Federal Savings and Loan Bank 114 (1) Includes full-time, pari -time and seasonal employees. Source: The Citta and individual employers. As of April 2010 Population • Historical; current and estimated population data for the City and Clallam County are the following: Population City of Clallam Year Port Angeles Countv 2010 19,380 70,100 2009 19,260 691500 2008 19,170 69,200 2007 19,010 68,500 2006 18.970 67.800 2005 18.640 66.800 • Source: Washington State Office of Financial Management intercensal population estimates A -I P:Q0391 D0T20391 2A2 Income Data Year Clallam County 2008 (1) $2,450,931 2007 2,388,872 2006 2226,601 2005 21036,765 2004 1,977,101 Comparative Personal Income (S in Thousands) Washington State Non -Metro Aletropolitan 525,657,910 $255,019,651 24,513,336 246,494,506 22,791,492 229,231484 21,113,187 208,888,694 20,481,837 201,896;841 (1) Latest available data shown. Source: U.S. Department of Commerce Bureau of Economic Analysis Year Clallam County 2008(l) $34,551 2007 33,995 2006 31.959 2005 29.626 2004 29.314 United States Non -Metro Metropolitan $1,541,270,673 510,684,318,327 1,474,863,152 10,404,972,848 1,393,518,592 9,862,997,048 1,324,255,222 9,152,413,778 1,271,927,794 8,656,862,206 Comparative Per Capita Personal Income Washington State Non -Metro Metropolitan $31,778 S44,285 30,713 43,498 28,813 41,072 27.055 38.112 26.511 37.307 (1) Latest available data shown. Source: 1i.S. Department of Conurrerce Bureau of Economic Analysis Labor Force Data United States Non -Metro Metropolitan S31,098 $41,930 29,856 41.260 28.324 39.548 27.060 37.082 26.075 35.440 (1) Preliminary, as of April 2010. Source: il%ashington State Employment Security Department A-2 0 P:W391_D01120391 2A2 0 0 Employment Statistics Clallam County Annual Averages 2010(1) 2009 2008 2007 2006 Civilian Labor Force 30,670 30,300 30,000 29,750 29.450 Employed 27,220 27,390 27.940 28,050 27,740 Unemployed 3,450 2,910 2;050 1,700 1,710 % Unemployed 11.3% 9.6% 6.8% 5.7% 5.8% (1) Preliminary, as of April 2010. Source: il%ashington State Employment Security Department A-2 0 P:W391_D01120391 2A2 0 0 • Nonagricultural Wage and Salary Workers (1) Residential Commercial Total Clallam County Permits Permits Valuation 2009 Annual Averages 164 $ 42,236,495 • 2008 429 2010 (2) 2009 2008 2007 2006 Total Nonagricultural Wage & Salary Workers 22,620 22,750 23,470 23,900 23,850 Natural Resources, Mining & Construction 1,490 1,540 1,900 2,160 2;300 Manufacturing 1,590 1,520 1.440 1,620 1;610 Wholesale & Retail Trade 3,920 3,710 3.930 4,060 4,170 Transportation, Warehousing & Utilities 490 470 510 500 510 Information and Financial Activities 1,050 1,060 1,120 1,170 1,170 Other Services 6,970 7,300 7,580 7,590 7,500 Government 71110 7,150 6,990 6,800 6,590 (1) Totals may not add due to rounding. (2) Preliminary, through March 2010. Source: T ashington State Department ofFmp1ornre171 Secr rhy Other Data City of Port Angeles Value of New Construction Source: Cit)- of Port . fteles • A-3 P!,20391_DO712039I_2A2 Residential Commercial Total Year Permits Permits Valuation 2009 405 164 $ 42,236,495 • 2008 429 178 17,311,981 2007 596 214 40,190,831 2006 515 162 37.586,799 2005 596 185 48,527,021 Source: Cit)- of Port . fteles • A-3 P!,20391_DO712039I_2A2 " L -J City of Port Angeles and Clallam County Taxable Retail Sales Year City of Port Angeles Clallam County 2010 (1) S 66,491,373 S 200,544,933 2009 304,191,311 888:109,138 2008 337;822,334 943:914,305 2007 374,263,660 1,063,474,587 2006 360.273.625 1.026.774.879 (1) Preliminary, through first quarter. Source: Washington State Department of Revenue Source: i6ashington State Office of Financial Management 0 A-4 P:120391 D0T20391_2A2 Assessed Valuation Year City of Port Angeles Clallam County 2010 S1,757,276,293 $8,243,327,771 2009 1,994,259,574 8,587,834,547 2008 11952,176,500 8,196,577,906 2007 1,595:493,428 7,477,997.284 2006 ' 1'1281.703,518 6,053,545,616 Source: Clallam County assessor's Office Clallam Count' Number of Housing Units by Structure Type Mobile Homes, Total One Unit Two or More Unit Trailers, Housing Units Structures Structures Special Units 2005 2009 2005 2009 2005 2009 2005 2009 City of Port Angeles 8,828 9,173 6,506 6,762 2;009 2.066 313 345 Other Incorporated 3,985 4,814 2,109 2,540 1,.012 1,353 864 921 Unincorporated 20,169 21,354 14,727 15,605 552 577 4,890 5,172 County Total 32,982 35,341 23,342 24,907 3,573 3,996 6,067 6438 Source: i6ashington State Office of Financial Management 0 A-4 P:120391 D0T20391_2A2 • APPENDIX B FORM OF LEGAL OPINION • P120391_DUR20391_M APPENDIX C • THE CITY'S COMPREHENSIVE ANNUAL FLNIANCL-tL REPORT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009 0 • PA20391 DUR20391 2A2 • APPENDIX D BOOK -ENTRY SYSTEM • • P:M397 D0W0397 2A2 APPENDIX D BOOK -ENTRY SYSTEM The following information has been provided br• The Depositor)- Trust Cornpan3}1 New Fork, Nevi- Fork ("DTC'). The Cih- makes no representation regarding the accuracy or completeness thereof. Beneficial 64vners (as hereinafter defined) should therefore confirm the follolVing With DTC or the Participants (as hereinafter defined). SAMPLE OFFERLNG DOCUMENT LANGUAGE DESCRIBL 1G BOOK -ENTRY -ONLY ISSUANCE (Prepared by DTC --bracketed material may apply only to certain issues) 1. The Depository Trust Company ("DTC"), New York NY, will act as securities depository for the securities (the "Securities"). The Securities krill be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Security certificate will be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC. [If. however, the aggregate principal amount of [any] issue exceeds S500 million, one certificate will be issued with respect to each S500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 2. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law. a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 35 million issues of U.S. and -non-U.S, equity' issues, ' corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book - entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC•"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at NvxvNv.dtcc.com and ww»-.dtc.ora. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (`Beneficial Owner') is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to D-1 PA20391_00-R20391_2A2 • whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. S. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.] [6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.] 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's NIlvl1 Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede &. Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from Issuer or Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case • with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. • [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to [Tender/Remarketing] Agent. and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to [Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Securities to [Tenden,Remarketing] Agent's DTC account.] 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. Issuer may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof. D-2 P:120391 D0m120391 M APPENDIX E FORM OF BOND ORDINANCE P:120391 _D OT,20391 2A2 0 0 • Monthly Financial Update JUNE 201 0 General Fund & Street Overview Compared to 2009, General Fund revenues are down 2%; however, we are still on target with nearly 51% of budgeted revenues collected. The General Fund has spent just under 50% of budgeted expenditures which is on target for this point in the year. GENERAL FUND Revenues -through June Expenditures -through June Net Rev, over/(under) Exp. STREET FUND Revenues -through June Expenditures -through June Net Rev, over/(under) Exp. ��0i. PORT Alt, Zvi ��.\N'-N�w 2010 _ Actual Budget % 8,621,483 17,050,512 50.60/. 8,495,295 17,240,532 49.3% 126,188 (190,020) 950,079 1,662,625 57.1% 889,064 1,801,995 49.3% 61,015 (139,370) In the General Fund, the three However, it is important to note Due to timing issues with certain largest revenue sources are at or that traditional funding sources such revenues and expenditures, some slightly above budgeted levels: as the gas talc'• remain- stagnant and -'Monthly- comparisons will be Utility tax collections are at the Street Fund instead is forced to skewed. The most accurate com- 52% of budget, slightly above rely on interfund charges (from parisons take place at year end, target for this point in the year. Stormwater) as a major revenue when all revenues and expenditures Sales tax is at 48% collected, and source. Through June, Street Fund have been reconciled for the year. historically has been just under expenditures are 2% lower than Revenue through June 47% collected through June. 2009, primarily due to the timing of 2010 Actual 2010 Budget Property tax collections are at projects and vacant positions not Gas Tax $ 198,112 $ 435,853 54% collected at the mid -point being filled immediately. With 50% 45% collected in 2010 of 2010. We are optimistic of the year completed, we are above 43% collected in 2009 these trends will continue. target with revenues (57.1% of REET S 98,596 $ 240,000 In the Street Fund, revenues budget collected) and expenditures 41 % collected in 2010 collected are ur) 10% from 2009. (49% spent) in the Street Fund. 49% collected in 2009 $300,000 Sales Tax Revenue by Month zA $250,000 $200,000 —�— 2009 -- —2010 --0 2010 Budget $150,000 Jan Feb Mar Apr May June July Aug Sept Od Nov Dec Sales Tax Revenue is down, 3% through June 2010 compared to the same period last year. To date, lve are on target with 48% of budget collected. Don' $95,000 $80,000 k $65,000 la $50,o0o $35,000 9'. $30,400 $5,000 F Through June (50% of the year com- pleted) all utilities are on target to reach 20'1 Utility Tax Revenue their budgeted revenue by the end of the year. The Dectnc Utrlrty has col- 1,800,040 lected 540,E of the budget which com- 57.0% 1,400,400 550% '2 level of 51%. In the Water and Waste- 1,200,00© water Funds, the majority of collections 53'0°la 6 1,0007000 51.0% v and half of the year, similar to 2010 col- 800,000 lection levels_ The stormwater collection U 800.004 47.0°I° paid with property taxes and a signif- 45,0% cant number of citizens pay the lump 1,833 400,000 61.2% Ian Checking Fees 204,000 Don' $95,000 $80,000 k $65,000 la $50,o0o $35,000 9'. $30,400 $5,000 F Through June (50% of the year com- pleted) all utilities are on target to reach 20'1 Utility Tax Revenue their budgeted revenue by the end of 41 "k °� ,�' ���� sum at the beginning of the year, "'Co Through June we have collected 52°I0 of all budgeted utility tax revenues, �51� slightly higher than where we expect to be at this point in the year. Fomij 2010 Budget ® 2010 Actual % CoIIected MMIU111 Economic weloprr Forget the settsottc V on Building Permits th Community Development Revenue the year. The Dectnc Utrlrty has col- 59'O��o lected 540,E of the budget which com- 57.0% pares favorably to the average historical 550% '2 level of 51%. In the Water and Waste- ; water Funds, the majority of collections 53'0°la 6 have historically taken place in the sec - 51.0% v and half of the year, similar to 2010 col- 4,725 lection levels_ The stormwater collection -321% rate is nearly 60% because rates are. 47.0°I° paid with property taxes and a signif- 45,0% cant number of citizens pay the lump 41 "k °� ,�' ���� sum at the beginning of the year, "'Co Through June we have collected 52°I0 of all budgeted utility tax revenues, �51� slightly higher than where we expect to be at this point in the year. Fomij 2010 Budget ® 2010 Actual % CoIIected MMIU111 Economic weloprr Forget the settsottc V on Building Permits th Community Development Revenue Revenue Source 2010 2009 % variance Building Permits $ 43,758 $ 71,667 -38.9% [umbing Permits 4,725 6,862 -321% echanical Permits 8,026 8,527 -5.9% Sign . Permits 1,833 1,137 61.2% Ian Checking Fees 30,688 91,212 -66.4% Planning Permits 2,140 3,780 -43.4% Zoninq Fees 2,713 5,525 -50.9° Total Revenue $ 93,883 $188,810 M._5-3ya Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec —�-2009 0 -Actual 0 2010 Budget ~' `Lodging Tax ,-revenue collected through June 201Qi., . is up 12% from tha same period in 2009 We,have'... cfll[ected 23 S°/a of budget Hist Bally we have collected 26.34/° cf°budg"el thra�gh,JurEe.„ • City Council Special Meeting/Utility Advisory Committee Jack Pittis Conference Room Port Angeles, WA 98362 June 8, 2010 3:00 p.m. L Call To Order Chairman Di Guilio called the meeting to order at 3:00 p.m. II. Roll Call Councilmembers Present: Chairman Di Guilio, Cherie Kidd, Max Mania, Pat Downie Councilmembers Absent: Brooke Nelson, Don Perry, Brad Collins Utility Advisory Committee Members Present: Paul Elliott, Dean Reed Staff Present: Glenn Cutler, Larry Dunbar, Steve Sperr, Phil Lusk, Terri Partch, Terry Gallagher, Brian Smith, Ken Dubuc, Cate Rinehart, Rick Hostetler (Arrived at 3:58) • Others Present: ShirleyNixon — Center For Environmental Land and Policy III. Approval Of Minutes Chairman Di Guilio asked if there were any corrections to the minutes of May 11, 2010. Dean Reed moved to approve the minutes. Councilmember Kidd seconded the motion, which carried unanimously. Chairman Di Guilio abstained due to absence at the meeting. IV. Late Items Elwha Water Source Metering Summer Water Use V. Discussion Items A. Stormwater Rate Reduction Incentives Terri Partch, Stormwater Program Manager, gave a power point presentation summarizing the requirements for a 25% stormwater rate reduction and giving examples of how these requirements can be met. There was a brief discussion. • Information only. No action taken. F-1 B. Wireless Mobile Data System Grant Application Update O Y PP P Larry Dunbar, Deputy Director of Power Systems, gave a power point presentation providing estimated operating and maintenance costs. A discussion followed. Information only. No action taken. C. Energy Efficiency And Conservation Block Grant Capital Agreement Phil Lusk, Power Resources Manager, revealed that the City had received a grant from the American Recovery and Reinvestment Act of 2009 which will enable the installation of cooling/economizer repairs for the City Hall main floor offices, heating, ventilation and air-conditioning improvements for the second floor legal department are and a Direct Digital Controls system. There was a brief discussion. Dean Reed moved to recommend City Council authorize the Mayor to sign Capital Agreement Contract Number F10-52110-044 with the Washington State Department of Commerce for a $135,000 grant for the City Hall Annex Energy Conservation Improvements project. Councilmember Kidd seconded the motion, which carried unanimously. D. Advanced Metering Infrastructure System Project Update IV Larry Dunbar, Deputy Director of Power Systems, reviewed the components contained in the packet, responded to questions, and provided clarification. A lengthy discussion followed. Information only. No action taken. VI. Late Items A. Elwha Water Source Metering Glenn Cutler, Director of Public Works and Utilities, gave a brief overview noting that the City is monitoring the situation. Information only. No action taken. B. Summer Water Use Councilmember Downie indicated that several individuals had approached him about the possibility of the City giving people an incentive to water their lawns during the summer to prevent so many brown areas. Staff advised that the trend is to not water due to lower water in the streams and as a conservation measure. 0 2 F-2 • Information only. No action taken. VII. Next Meeting Date: VIII. Adjournment: Dan Di Guilio, Mayor Dan Di Guilio, Chair Utility Advisory Committee • • July 13, 2010 4:14 p.m. Janessa Hurd, City Clerk Cate Rinehart, Administrative Specialist 11 F-3 0 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington June 29, 2010 CALL TO ORDER- Mayor Di Guilio called the special meeting of the Port Angeles City Council to SPECIAL MEETING: order at 5:03 p.m. ROLL CALL: Members Present: Mayor Di Guilio, Deputy Mayor Perry, Councilmembers Collins, Downie, Kidd, Mania, and Nelson. Members Absent: None. Staff"Present: Manager Myers, Attorney Bloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, N. West, Y. Ziomkowski, B. Coons, and R. Bonine. PLEDGE OF Mayor Di Guilio led the Pledge of Allegiance to the Flag. ALLEGIANCE: WORK SESSION: 1. Capital Facilities Plan (2010-2016) Manager Myers asked Council if they had any issues or changes they wanted to discuss regarding the Capital Facilities Plan before next week's City Council O meeting. Council discussion followed. 2. Labor Contract Negotiations Process Human Resources Manager Coons presented information regarding the Labor Contract negotiation process. Council discussion followed. 2011 Budget Process Finance Director Ziomkowski presented information regarding the 2011 Budget process, including budgeting for priorities, conducting a public survey, and the budget calendar. Council discussion followed. Director Ziomkowski provided an interactive spreadsheet presentation regarding the preliminary assumptions for the 2011 Budget. Council discussion followed. Break Mayor Di Guilio recessed the meeting for a break at 7:04 p.m. The meeting reconvened at 7:20 p.m. WORK SESSION: Council continued discussion on the 2011 Budget process. (Cont'd) 4. City Advisory Boards & Committees Manager Myers reviewed the current Boards, Commissions, and Committee assignments with Council. Councilmember Mania addressed some issues regarding meetings being held during the day and meetings held in the Jack Pittis Conference room. Council discussion followed. 0 F-4 CITY COUNCIL MEETING June 29, 2010 • WORK SESSION: (Cont'd) ADJOURNMENT: • L' Economic Development Action Plan Manager Myers discussed the Economic Development Summit process, including the five action items identified in the report. He suggested identifying a City of Port Angeles Economic Development Action Plan that included a list of priorities and implementation plans. Council discussion followed. Mayor Di Guilio adjourned the meeting at 8:03 p.m. Dan Di Guilio, Mayor 2 Janessa Hurd, City Clerk F-5 0 CITY COUNCIL MEETING Port Angeles, Washington July 6, 2010 CALL TO ORDER- Mayor Di Guilio called the regular meeting of the Port Angeles City Council to REGULAR MEETING: order at 6:00 p.m. ROLL CALL: Members Present: Mayor Di Guilio, Deputy Mayor Perry, Councilmembers Collins, Downie, Kidd, Mania, and Nelson. Members Absent: None. StaffPresent: Manager Myers, Attorney Bloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, N. West, Y. Ziomkowski, S. Sperr, R. Bonine, D. Bellamente, P. Breitbach, H. Moore, H. Greenwood, and D. Estes. PLEDGE OF Mayor Di Guilio led the Pledge of Allegiance to the Flag. ALLEGIANCE: CEREMONIAL 1. National Recreation & Parks Month Proclamation MATTERS/ PROCLAMATIONS/ Mayor Di Guilio presented a proclamation to Patti Carman of the Peninsula Trails & EMPLOYEE Coalition proclaiming July 2010 as National Recreation & Parks Month in Port RECOGNITIONS: Angeles. Richard Bonine described some of the changes to the proclamation from previous years and introduced Patti Carman, who spoke about the Waterfront Trail. 2. Employee Recognition — Heidi Greenwood, Assistant City Attorney Attorney Bloor recognized Heidi Greenwood, Assistant City Attorney, with a certificate of completion from the National Advocacy Center Training Program. PUBLIC COMMENT: Cynthia Warne, Farmers' Market Manager, 715 E. 4`h St., provided an update on the Market's success at the Gateway Center. She also described some issues related to the number of vehicles allowed on the deck at one time and nesting pigeons. Darlene Schanfald, PO Box 2664, Sequim, spoke in opposition to Amendment No. 7 to the Brown & Caldwell Consultant Agreement. CITY COUNCIL Councilmember Nelson spoke regarding her attendance at the ACTI tour, which REPORTS: addressed growth opportunities for the Company and discussed the need for partnerships with the Port of Port Angeles and the City of Port Angeles. She also reminded everyone to please fill out the new budget survey. Councilmember Mania spoke regarding his attendance at the Solid Waste Advisory Committee meeting, the Clallam Transit Board meeting, the conservation breakfast for the North Olympic Land Trust, and the Farmers' Market Council table. He also stated that he would be attending an upcoming meeting on July 13, 2010 organized by Clea Rome to reduce the number of vehicle miles traveled in both Jefferson and Clallam County and their plans to discuss possible grant applications. 0 F-6 • CITY COUNCIL MEETING July 6, 2010 CITY COUNCIL Councilmember Downie spoke regarding his attendance at the Clallam Transit REPORTS: Board Meeting, the conservation breakfast for the North Olympic Land Trust, the (Cont'd) Peninsula Development District meeting, and a meeting to address the possibility of increasing the number of cruise ships that stop in Port Angeles. Mayor Di Guilio spoke regarding his attendance at the Farmers' Market Council table. Deputy Mayor Perry spoke regarding his upcoming trip to Victoria as a City representative and guest of AM Victoria and Tourism Victoria. Councilmember Collins spoke regarding his attendance at the ACTI tour, the City Council work session on June 29, 2010, and the AWC conference in Vancouver. Councilmember Kidd spoke regarding her attendance at the AWC conference in Vancouver where they discussed budgets, parliamentary procedures, and methods to facilitate increased communication with our State Legislators. She also spoke regarding the application for a National Historic District here in Port Angeles. WORK SESSION: 1. Port Angeles Regional Chamber of Commerce Update Russ Veenema, Executive Director of the Chamber of Commerce, 121 E. Railroad, provided an update on the 2010 marketing campaign, past and upcoming events, room and sales tax, and Visitor Center. Council discussion followed. Jim Hallett, Chamber of Commerce Board member, thanked the Council and City Manager for • attending the Chamber Board meetings. 2. Governor's Committee on Transforming Washington's Budget Clallam County Commissioner Mike Doherty, member of the Governor's Committee on Transforming Washington's Budget, presented information regarding the committee. He discussed the Governor's plan on transforming the State's Budget and solving the large budget deficit. Council discussion followed. LATE ITEMS TO BE None. PLACED ON THIS OR FUTURE AGENDAS: • CONSENT AGENDA: Mayor Di Guilio moved the following item from the Consent Agenda to Other Considerations at the request of Councilmember Kidd; Material Purchase: Two Weathering Steel Bridges for Dry Creek. Councilmember Mania requested the following changes be made to the minutes of June 15, 2010: addition of Jeff Lincoln's attendance at the HarborWorks Development Authority Update under Work Session item number 1, and the addition of"allow them to access the audio recordings" to the end of his statement given under the City Council Meeting Minutes Resolution. 2 F-7 CITY COUNCIL MEETING July 6, 2010 CONSENT AGENDA: It was moved by Perry and seconded by Downie to approve the amended (Cont'd) Consent Agenda to include: 1.) City Council Minutes for June 1, June 4, and June 15, 2010; 2.) Expenditure Approval List 6/5/10 to 6/25/10 for $2,990,980.96; 3.) Amendment No. 7 to Brown & Caldwell Consultant Agreement; 4.) Recreation & Conservation Funding Board Grant Application; 5.) Material Purchase: Fiberglass Power Poles, Contract LO -10-008; 6.) Byme Justice Assistance Federal Grant — Set Public Hearing; and 7.) North Olympic Library Levy Lift — Set Public Hearing. Motion carried 7-0. Break Mayor Di Guilio recessed the meeting for a break at 7:15 p.m. The meeting reconvened at 7:24 p.m. ORDINANCES NOT 1. Adoption of International Building Codes 2009 Ordinance Amendment REQUIRING PUBLIC HEARINGS: Community and Economic Development Director West presented information regarding the adoption of the 2009 International Building Codes, providing Ordinance No. 3404 information on some of the new requirements. Following Council discussion, Mayor Di Guilio conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3404 AN ORDINANCE of the City of Port Angeles, Washington, adopting the 2009 editions of the International Building, Mechanical, Fire and Residential Codes, the 2009 Uniform Plumbing Code with amendments and appendices, and the International Property Maintenance Code. It was moved by Mania and seconded by Collins to: Adopt the Ordinance as read by title. Motion carried 7-0. Ordinance No. 3405 2. Public Records Inspection Ordinance Amendment Attorney Bloor provided information regarding the ordinance amendment, stating the amendment implemented an additional response procedure recently passed by the State Legislature. Following council discussion, Mayor Di Guilio conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3405 AN ORDINANCE of the City of Port Angeles, Washington, amending Chapter 2.74 of the Port Angeles Municipal Code relating to inspection of public records. It was moved by Mania and seconded by Nelson to: Adopt the Ordinance as read by title. Motion carried 7-0. O C` • • • CITY COUNCIL MEETING July 6, 2010 RESOLUTIONS NOT 1. 2010-2016 Capital Facilities Plan (CFP) / Transportation Improvement REQUIRING PUBLIC Program (TIP) HEARINGS: Public Works Director Cutler reviewed the comments made at the June 29, 2010 Resolution No. 12-10 work session regarding the 2010-2016 Capital Facilities Plan and Transportation Improvement Program. Following Council discussion, It was moved by Collins and seconded by Perry to: Amend the year from 2012 to 2013 for the Downtown Parking Structure and Bluff Stabilization project. Motion carried 7-0. Mayor Di Guilio read the Resolution by title, entitled, RESOLUTION NO. 12-10 A RESOLUTION of the City Council of the City of Port Angeles, Washington, adopting the Capital Facilities Plan and "Transportation Improvement Program for 2010-2016. It was moved by Collins and seconded by Perry to: Pass the Resolution as read by title. Motion carried 7-0. OTHER 5. Material Purchase: Two Weathering Steel Bridges for Dry Creek CONSIDERATIONS: Councilmember Kidd inquired about funding and costs associated with the project. Following Council discussion, It was moved by Nelson and seconded by Perry to: Award and authorize the City Manager to sign a contract with Big R Bridge of Greeley, Colorado in the amount of $181,732.60, including tax, for the purchase of two pre -manufactured weathering steel bridges. Motion carried 7-0. PUBLIC HEARINGS— None. QUASI-JUDICIAL: PUBLIC HEARINGS- None. OTHER: 4 F-9 CITY COUNCIL MEETING July 6, 2010 FINANCE: 1. Request for Amendment to 2010 Information Technology Capital Budget Finance Director Ziomkowski provided information regarding the amendment to the 2010 Information Technology Capital Budget and explained the reasons the Capital Facilities Project IT03-2009 needed to be completed this year. Following Council discussion, It was moved by Downie and seconded by Mania to: Approve $150,000 amendment to 2010 Information Technology budget to be used for CFP Project IT03-2009. Motion carried 7-0. INFORMATION: Manager Myers spoke regarding the reports in the packet, the interviews scheduled for the 4 finalists for the Waterfront & Transportation project, an upcoming report for Council regarding residents who have recently moved to Port Angeles, an upcoming report for Council regarding cost-cutting measures implemented by City Departments, the City's Economic Development Plan, the dedication of the Lower Elwha Klallam Tribe's Heritage Center, and his attendance at the recent AWC conference in Vancouver. EXECUTIVE SESSION: None. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 7:50 p.m. Dan Di Guilio, Mayor Janessa Hurd, City Clerk 0 F-10 • • 0 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington July 13, 2010 CALL TO ORDER- A Special City Council meeting was called to coincide with the Utility Advisory SPECIAL MEETING: Committee meeting. There being no quorum present, a special council meeting was not conducted. ROLL CALL: Members Present: Mayor Di Guilio, Councilmember Kidd and Mania. Members Absent: Deputy Mayor Perry, and Councilmembers Collins, Downie, and Nelson. Dan Di Guilio, Mayor Janessa Hurd, City Clerk F-11 'Date: 7/14/2010 City of Port Angeles *5.7"" City Council Expenditure Report 'From: 6/26/2010 To: 7/9/2010 O Vendor Description Account Number Invoice Amount CLALLAM CNTY TREASURER CVCA TO CLALAM CO TREAS 0 001-0000-229.40-00 214.12 CONNEY SAFETY PRODUCTS FIRST AID & SAFETY EQUIP. 001-0000-237.00-00 -10.25 LYNN PEAVEY COMPANY POLICE EQUIPMENT & SUPPLY 001-0000-237.00-00 -6.21 POLICE EQUIPMENT & SUPPLY 001-0000-237.00-00 -20.88 Electrical Training, Inc DEP RFD 001-0000-239.93-00 50.00 Karen Jensen/FriendsLakeCresce DEP RFD 001-0000-239.93-00 23.00 Maple Grove HOA DEP RFD 001-0000-239.93-00 50.00 Porcello's Estate Buyers DEP RFD 001-0000-239.93-00 50.00 SCHWAN'S HOME SERVICE INC 001-0000-213.10-91 25.00 Tim Marvin LOOMIS DEPOSIT REFUND MAR 001-0000-239.10-00 50.00 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 001-0000-237.00-00 -36.29 US BANK CORPORATE PAYMENT SYSTEI City Credit Card Pmt 001-0000-213.10-95 8,224.71 WA STATE DEPARTMENT OF REVENUE 2ND QTR LEASEHOLD TAX RET 001-0000-237.50-00 4,117.86 WASHINGTON (DOL), STATE OF MAR 2010 ST SHARE CPLS 001-0000-229.60-00 636.00 APR 2010 ST SHARE CPLS 001-0000-229.60-00 381.00 MAY 2010 STA SHARE CPLS 001-0000-229.60-00 380.00 WASHINGTON STATE TREASURER MAY BUILDING SURCHARGE 001-0000-229.10-00 139.50 DIST CT REV TO ST TREAS 5 001-0000-229.40-00 9,735.69 Division Total: Department Total: $24,003.25 $24,003.25 O ADVANCED TRAVEL AWC Conf-Kidd 001-1160-511.43-10 327.00 VMT Mtg-Korcz 001-1160-511.43-10 14.40 Legislative Mayor & Council Division Total: $341.40 Legislative Department Total: $341.40 ADVANCED TRAVEL AWC Conf-Myers 001-1210-513.43-10 84.00 Sequim City Mgr -Myers 001-1210-513.43-10 15.25 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 001-1210-513.42-10 1.80 OLYMPIC STATIONERS INC OFFICE SUPPLIES / FILE LA 001-1210-513.31-01 16.37 OFFICE SUPPLIES / FOLDERS 001-1210-513.31-01 33.77 PACIFIC OFFICE EQUIPMENT INC PRINTER CARTRIDGE 001-1210-513.31-01 89.96 QWEST 06-14 A/C 3604571535571B 001-1210-513.42-10 1.74 06-14 A/C 3604570968343B 001-1210-513.42-10 2.31 06-14 A/C 3604570831558B 001-1210-513.42-10 1.16 06-14 A/C 3604576684085B 001-1210-513.42-10 7.30 06-23 A/C 206T302306084B 001-1210-513.42-10 20.63 06-23 A/C 206T310164584B 001-1210-513.42-10 28.15 06-16 A/C 206T359336570B 001-1210-513.42-10 28.15 06-14 A/C 3604570411199B 001-1210-513.42-10 55.86 City Manager Department City Manager Office Division Total: $386.45 AT&T BUSINESS SERVICE QWEST 06-13 A/C 0172134468001 06-14 A/C 3604571535571B 001-1220-516.42-10 001-1220-516.42-10 0.36 0.35 06-14 A/C 3604570968343B 001-1220-516.42-10 0.46 F-12 Pagel � Date' 7/14/2010 ,. City of Port Angeles City Council Expenditure Report From: 612612010 To: 71912010 Vendor Description Account Number Invoice Amount OWEST 06-14 AIC 3604570831558B 001-1220-516.42-10 0.23 06-14 AIC 3604576684085B 001-1220-516.42-10 1.46 06-23 AIC 206T302306084B 001-1220-516.42-10 4.13 06-23 A1C 206T310164584B 001-1220-516.42-10 5.63 06-16 A1C 206T359336570B 001-1220-516.42-10 5.63 06-14 A1C 3604570411199B 001-1220-516.42-10 11.17 City Manager Department Human Resources Division Total: $29.42 ADVANCED TRAVEL NW Clerks Inst -Hurd 001-1230-514.43-10 128.60 Records Mgt Smnr-Hurd 001-1230-514.43-10 10.20 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-1230-514.42-10 0.17 QWEST 06-14 A1C 36045715355718 001-1230-514.42-10 0.17 06-14 A1C 3604570968343B 001-1230-514.42-10 0.23 06-14 A1C 36045708315588 001-1230-514.42-10 0.12 06-14 A1C 36045766840858 001-1230-514.42-10 0.73 06-23 AIC 206T302306084B 001-1230-514.42-10 2.06 06-23 A1C 206T310164584B 001-1230-514.42-10 2.81 06-16 A1C 206T359336570B 001-1230-514.42-10 2.81 06-14 A1C 36045704111998 001-1230-514.42-10 5.59 City Manager Department City Clerk City Manager Department Division Total: Department Total. $153.49 $569.36 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-2010-514.42-10 1.26 QWEST 06-14 A1C 3604571535571B 001-2010-514.42-10 1.22 06-14 A1C 3604570968343B 001-2010-514,42-10 1,62 06-14 A1C 3604570831558B 001-2010-514.42-10 0.81 06-14 A1C 3604576684085B 001-2010-514.42-10 5.11 06-23 NC 206T302306084B 001-2010-514.42-10 14.44 06-23 A1C 206T310164584B 001-2010-514.42-10 19.70 06-16 A1C 206T359336570B 001-2014-514.42-10 19.70 06-14 A1C 36045704111998 001-2010-514.42-10 39.10 Finance Department Finance Administration Division Total: $102.96 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 401-2023-514.42-10 1.62 OLYMPIC LOCK & KEY REKEY FILING CABINET 001-2023-514.41-50 83.41 OLYMPIC PRINTERS INC WINDOW ENVELOPES 001-2023-514.31-01 329.76 OLYMPIC STATIONERS INC FILE FOLDERS 001-2023-514.31-01 63.02 PACIFIC OFFICE EQUIPMENT INC TONER CARTRIDGEIHORTON 001-2023-514.31-01 162.83 QWEST 06-14 A1C 36045715355718 001-2023-514.42-10 1.57 06-14 A1C 36045709683438 001-2023-514.42-10 2.08 06-14 A1C 3604570831558B 001-2023-514.42-10 1.04 06-14 A1C 3604576684085B 001-2023-514.42-10 6.57 06-23 A1C 206T302306084B 001-2023-514.42-10 18.57 06-23 A1C 206T310164584B 001-2023-514.42-10 25.33 06-16 A1C 206T359336570B 001-2023-514.42-10 25.33 F-13 Page 2 Date: 711412010 City of port Angeles City Council. Expenditure Report �f Y From: 6/26/2010 To: 7/9/2430 Vendor Description Account Number Invoice Amount QWEST 06-14 A1C 36045704111998 001-2023-514.42-10 50.28 Finance Department Accounting Division Total: $771.41 ACCURINT PERSON SEARCHES 001-2025-514.41-50 54.20 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-2025-514.42-10 2.34 DATASAR INCORPORATED CYCLES 11-15 6117110 001-2025-514.41-50 1,903.33 CYCLES 16-20 6/24110 001-2025-514.41-50 1,551.16 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-2025-514.45-31 17.56 ELECSYS INT'L CORP RADIX MAINTENANCE AND TAX 001-2025-514.48-10 254.00 RADIX MAINTENANCE AND TAX 001-2025-514.48-10 21.34 EQUIFAX CREDIT REPORTS 001-2025-514.41-50 60.44 GREAT AMERICA LEASING CORP JUNE COPIER LEASE 001-2025-514.45-31 123.21 OLYMPIC PRINTERS INC WINDOW ENVELOPES 001-2025-514.31-01 1,044.29 OLYMPIC STATIONERS INC SORT QWIKILTR OPENERS 001-2025-514.31-01 37.87 SORT KWIK 001-2025-514.31-01 24.70 STAMP PADS 001-2025-514.31-01 10,42 PACIFIC OFFICE EQUIPMENT INC TONER CARTRIDGE/ROOKS 001-2025-514.31-01 192.91 i TONER CARTRIDGE/EMERY 001-2025-514.31-01 192.91 QWEST 06-14 A1C 3604571535571 B 001-2025-514.42-10 2.26 06-14 A1C 36045709683438 001-2025-514.42-10 3.01 06-14 A1C 36045708315588 001-2025-514,42-10 1.50 06-14 A1C 36045766840858 001-2025-514.42-10 9.49 06-23 A1C 206T302306084B 001-2025-514.42-10 26.82 06-23 A1C 206T310164584B 001-2025-514,42-10 36.59 06-16 AIC 206T359336570B 001-2025-514.42-10 36.59 06-14 A1C 3604570411199B 001-2025-514.42-10 72.62 Finance Department Customer Service Division Total: $5,679.516 DATA BASE JUNE RECORDS DESTRUCTION 001-2080-514.41-50 198,40 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-2080-514.45-31 669.30 GREAT AMERICA LEASING CORP JUNE COPIER LEASE 0101-2080-514A5-31 268.55 JUNE COPIER LEASE 001-2080-514.45-31 607.63 JUNE COPIER 001-2080-514A5-31 638.27 JUNE COPIER LEASE 001-2080-514A5-31 143.72 MORNINGSIDE JUNE COPY RM SERVICES 001-2080-514A1-50 855.00 Finance Department Reprographics Division Total: $3,380.87 Finance Department Department Total: $9,934.80 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-3010-515,42-10 1.08 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-3010-515.45-31 27.52 OWEST 06-14 AIC 3604571535571B 001-3010-515.42-10 1.04 06-14 AIC 36045709683438 001-3010-515,42-10 1.39 06-14 A1C 36045708315588 001-3010-515.42-10 0.69 06-14 AIC 3604576684085B 001-3010-515.42-10 4.38 06-23 A1C 206T302306084B 001-3010-515.42-10 12.39 I F-14 Page 3 Date: 711412010 City of Port Angeles City Council Expenditure Report ' -•xA' From: 612612010 To: 7/9/2010 Vendor Description Account Number Invoice Amount QWEST 06-23 A1C 206T310164584B 001-3010-515.42-10 16.89 06-16 AIC 206T359336570B 001-301.0-515.42-10 16.89 06-14 A1C 36045704111998 001-3010-515.42-10 33.52 Attorney Attorney Office Division Total: $115.79 CLALLAM CNTY SHERIFF'S DEPT MAY JAIL BILL 001-3012-598.51-23 40,964.69 FRIENDSHIP DIVERSION SERVICES ELEC HOME MONITOR-MISC 001-3012-598.51-23 2,109.09 Attorney Jail Contributions Division Total: $43,473.78 ADVANCED TRAVEL Trial Advey 1 -Greenwood 001-3021-515.43-10 323,55 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-3021-515A2-10 0.72 CASE, CAROL L. DISTRICT COURT COVERAGE 041-3021-515.41-50 420.00 CLALLAM PUBLIC DEFENDER Public Defender Fees 001-3021-515.41-50 5,000.00 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-3021-515.45-31 27.53 FREEDMAN, LAWRENCE ATTNY AT LAW SUP.CONT.D.CT.PCR 15354 001-3021-515.50-90 484.00 SUP.CONT.D.CT.PCR 16182 001-3021-515,50-90 434.50 SUP.CONT.D.CT.PCR 16352 001-3021-515.50-90 528.00 MYERS, STAN BOYD PCR16062 001-3021-515.50-90 175.00 BREEN PCR15157 001-3021-515.50-90 60.00 WILSON PCR14647 001-3021-515.50-90 60.00 BULLOCK PCR13438 001-3021-515.50-90 60.00 VAGEL PCR14740 001-3021-515.50-90 60.00 MARTIN PCR17264 001-3021-515.50-90 175.00 PLUTE PCR14237 001-3021-515,50-90 175.00 CLARK P9-178 001-3021-515.50-90 175.00 WHYRICK PCR162.11 001-3021-515,50-90 175,00 NAHERA PCR16202 001-3021-515.50-90 175.00 FAUST PCR16452 001-3021-515.50-90 175.00 MEAD PCR16165 001-3021-515.50-90 100.00 GASPER PCR16217 001-3021-515.50-90 175.00 PAYNE LAW FIRM, PS, INC SUPP.D.CT,ATTY.PCR016183 001-3021-515.50-90 474.00 QWEST 06-14 A1C 3604571535571 B 001-3021-515.42-10 0.70 06-14 A1C 36045709683438 001-3021-515,42-10 0.93 06-14 A1C 36045708315588 001-3021-515,42-10 0.46 06-14 A1C 36045755840858 001-3021-515,42-10 2.92 06-23 AIC 206T302306084B 001-3021-515.42-10 8.25 06-23 AIC 206T310164584B 001-3021-515,42-10 11.26 06-16 A1C 206T359336570B 001-3021-515.42-10 11.26 06-14 A1C 3604570411199B 001-3021-515.42-10 22.34 Attorney Prosecution Division Total: $9,490.42 Attorney department Total: $52,679.99 ADVANCED TRAVEL Envmntl Network-Korcz 001-4010-558,43-10 94.40 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-4010-558.42-10 1,35 QWEST 06-14 AJC 36045715355718 001-4010-558.42-10 1.30 F-15 Page 4 Date; 7/14/2010 City of Fort Angeles City Council. Expenditure Report �r From: 6/26/2090 To: 719120'10 40 Vendor Description Account Number Invoice Amount OWEST 06-14 AIC 3604570968343B 401-4010-558.42-10 1.73 06-14 AIC 3604570831558B 001-4010-558.42-10 0.87 06-14 AIC 36045766840858 001-4010-558.42-10 5.48 06-23 A1C 206T302306084B 001-4010-558.42-10 15.47 06-23 A1C 206T310164584B 001-4010-558.42-10 21.11 06-16 AIC 206T359336570B 001-4010-558.42-10 21.11 06-14 AIC 36045704111996 001-4010-558.42-10 41.90 Community Development Planning Division Total: $124,72 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-4020-524,42-10 0.47 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-4020-524.45-31 17.56 GREAT AMERICA LEASING CORP JUNE COPIER LEASE 001-4020-524,45-31 123.22 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-4020-524.31-01 101.99 QWEST 06-14 A1C 36045715355718 001-4020-524.42-10 0,45 06-14 A1C 36045709683438 001-4020-524.42-10 0.60 06-14 A1C 3604570831558B 001-4020-524.42-10 0.30 06-14 A1C 36045766840858 001-4020-524.42-10 1,90 06-23 AIC 206T302306084B 001-4020-524.42-10 5.36 06-23 AIC 206T310164584B 001-4020-524.42-10 7.32 06-16 A1C 206T359336570B 001-4020-524.42-10 7.32 06-14 A1C 3 6 045704 1 1 1 99B 001-4020-524.42-10 14.52 VERIZON WIRELESS 06-15 a/c 26423041.2-00003 001-4020-524.42-10 100.98 Community Development Building Division Total: $381.99 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-4030-559.42-10 0.07 OWEST 06-14 A1C 36045715355718 001-4030-559.42-10 0.07 06-14 AIC 36045709683438 001-4030-559.42-10 0.09 06-14 A/C 3604570831558B 001-4030-559.42-10 0.05 06-14 A1C 36045766840858 001-4030-559.42-10 0.29 06-23 A/C 206T302306084B 001-4030-559.42-10 0.83 06-23 AIC 206T310164584B 001-4030-559.42-10 1.13 06-16 A/C 206T35933657013 001-4030-559.42-10 1.13 06-14 A1C 3604570411199B 001-4030-559.42-10 2.23 VERIZON WIRELESS 06-15 a/c 264230412-00003 001-4030-559.42-10 25.24 Community Development Code Compliance Division Total: $31.13 Community Development Department Total: $537.84 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-5010-521,42-10 2.87 CAPACITY PROVISIONING INC NETWORK SERVICES 001-5010-521.42-12 172.00 DEPT OF LABOR & INDUSTRIES ELEVATOR PERMIT FOR DUMBW 001-5010-521.41-50 58.60 GLOBALSTAR IDSA 06-16 a/c 1.50018856 001-5010-521.42-10 42.18 JOBS AVAILABLE INC PAD IN JOBS AVAILABLE FOR 001-5010-521.44-10 280.00 PENINSULA DAILY NEWS AD FOR LATERAL ENTRY PDN 001-5010-521.44-10 454.35 PORT ANGELES POLICE DEPARTMENT Food -Safety Admin Group 001-5010-521.31-01 18.98 Postage for Grant App 001-5010-521,42-10 17.05 F-16 Page 5 6, Date: 7/1412010 City of Port Angeles City {Council Expenditure Report From: 612612010 To. 719/2010 Vendor Description Account Number Invoice Amount QWEST 06-23 a/c 206TO31979835B 001-5010-521.42-10 64.74 06-14 A1C 3604571535571 B 001-5010-521.42-10 2.78 06-14 A1C 36045709683438 001-5010-521.42-10 3.70 06-14 A1C 36045708315588 001-5010-521.42-10 1.85 06-14 A1C 3604576684085B 001-5010-521.42-10 11.69 06-23 A1C 206T302306084B 001-5010-521.42-10 33.01 06-23 A1C 206T310164584B 001-5010-521.42-10 45.04 06-16 A1C 206T359336570B 001-5010-521.42-10 45.04 06-14 A1C 3604570411199B 001-5010-521.42-10 89.38 Police Department Police Administration Division Total: $1,343.26 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-5021-521.42-10 1.80 BLUMENTHAL UNIFORMS & EQUIP POLICE EQUIPMENT & SUPPLY 001-5021-521.31-11 63.79 POLICE EQUIPMENT & SUPPLY 001-5021-521.31-11 213.87 POLICE EQUIPMENT & SUPPLY 001-5021-521.31-11 -35.66 CITY OF VANCOUVER DTH/HOMICIDE TRNG VANC WA 001-5021-521.43-10 225.00 PORT ANGELES POLICE DEPARTMENT Bridge Toll 001-5021-521.43-10 4.00 Bridge Toll 001-5021-521.43-10 4.00 OWEST 06-14 A1C 36045715355718 001-5021-521,42-10 1.74 06-14 A1C 36045709683438 06-14 A1C 3604570831558B 001-5021-521.42-10 001-5021-521.42-10 2.31 1.16 06-14 A1C 36045766840858 001-5021-521.42-10 7.30 06-23 A1C 206T302306084B 001-5021-521.42-10 20.63 06-23 A1C 206T310164584B 001-5021-521.42-10 28.15 06-16 A1C 206T359336570B 001-5021-521.42-10 28.15 06-14 A1C 3604570411199B 001-5021-521.42-10 55.86 Police Department Investigation Division Total: $622.10 ADVANCED TRAVEL QC Inst School-Heuett 001-5022-521.43-10 671.62 LNTSeminar-Roggenhuck 001-5022-521.43-10 681.51 AIRPORT GARDEN CENTER POLICE EQUIPMENT & SUPPLY 001-5022-521,49-80 65.03 POLICE EQUIPMENT & SUPPLY 001-5022-521.49-80 65.03 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-5022-521.42-10 5.03 BLUMENTHAL UNIFORMS & EQUIP POLICE EQUIPMENT & SUPPLY 001-5022-521.20-80 938.74 POLICE EQUIPMENT & SUPPLY 001-5022-521.20-80 208.00 BRATWEAR CLOTHING & APPAREL 001-5022-521.20-80 593.49 CLOTHING & APPAREL 001-5022-521.20-80 481.84 EVERGREEN TOWING AUTO MAJOR TRANSPORTATION 001-5022-521.49-90 127.37 K]NG CNTY OFFICE OF FINANCIAL MGMTTRAIN FEE FOR EMT SEXTON 001-5022-521.43-10 50.00 KITSAP COUNTY SHERIFF'S OFFICE SPRING EVOC NON PIT, PIT AN 001-5022-521.43-10 382.40 LINCOLN STREET STATION PATROL PKGS WSP TOX LAB,M 001-5022-521.42-10 27.66 PKG TO TOX LAB SEAT ITEM 001-5022-521.42-10 27.66 PATROL PKGS WSP TOX LAB,M 001-5022-521.42-10 8.69 LYNN PEAVEY COMPANY POLICE EQUIPMENT & SUPPLY 001-5022-521.31-01 80.06 F-17 Page 6 Date: 7/14/2010 City of Fort Angeles City Council Expenditure Report i F 18 Page 7 From: 6/2612010 To: 71912010 Vendor Description Account Number invoice Amount Sig Sauer Inc. REPLACEMENT SRVC WEAPON F 001-5022-521.31.84 660.16 MPH INDUSTRIES INC MPH 991090 DA 2010 B SM IT 001-5022-521.35-01 2,162.58 NExTEL COMMUNICATIONS 06-26 a/c 312753523 001-5022-521.42-10 39.99 PORT ANGELES POLICE DEPARTMENT Latch Tote 001-5022-521.31-01 18.43 Food -SIMS Role Rayers 001-5022-521.31-01 42.53 Duplicate Keys 001-5022-521.31-80 9.14 Bridge Toll 001-5022-521.43-10 4.00 QWEST 06-14 A1C 3604571535571B 001-5022-521.42-10 4.87 06-14 A1C 3604570968343B 001-5022-521.42-10 6.48 i 06-14 A1C 36045708315588 001-5022-521.42-10 3.24 06-14 A1C 36045766840856 001-5022-521.42-10 20.45 06-23 AJC 206T302306084B 001-5022-521.42-10 57.77 06-23 A1C 20GT310164584B 001-5022-521.42-10 78.81 06-16 A1C 206T359336570B 001-5022-521.42-10 78.81 06-14 AJC 360457041 1 1 99B 001-5022-521.42-10 156.41 RICHMOND 2 -WAY RADIO RADIO & TELECOMMUNICATION 001-5022-521.31-11 32.52 RADIO & TELECOMMUNICATION 001-5022-521.31-11 32.52 SWAIN'S GENERAL STORE INC CLEANING COMPOSITION/SOLV- 001-5022-521.31-01 12.87 Police Department Patrol Division Total. $7,835.71 NEXTEL COMMUNICATIONS 06-26 a/c 312753523 001-5026-521.42-10 75.26 PORT ANGELES POLICE DEPARTMENT AARP Safety Course 001-5026-521.43-10 12.00 Police Department Reserves & Volunteers Division Total. $87.26 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-5029-521.42-10 1.80 ! LYNN PEAVEY COMPANY POLICE EQUIPMENT & SUPPLY 001-5029-521.31-01 269.38 Carla Jacobi 2 PAIR SLACKS FOR C JACOB 001-5029-521.31-11 47.76 NEW CHAIR FOR C JACOBI 001-5029-521.31-80 162.88 PORT ANGELES POLICE DEPARTMENT Food/NIERS Trng 001-5029-521.31-01 24.87 Car Cover-Siezed Vehicle 001-5029-521.31-80 3.78 Evidence Room Door Kick 001-5029-521.31-80 5.28 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 46.82 OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 60.46 OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 -46.82 i QWEST 06-20 a/c 206T200017790B 001-5029-521.42-10 199.03 06-14 AIC 3604571535571 B 001-5029-521.42-10 1.74 ! 06-14 A1C 36045709683436 001-5029-521.42-10 2.31 I 06-14 AJC 3604570831558B 001-5029-521.42-10 1.16 06-14 A1C 36045766840858 001-5029521.42-10 7.301 06-23 AJC 206T302306084B 001-5029-521.42-10 20.63 06-23 AJC 206T310164584B 001-5029-521.42-10 28.15 06-16 AJC 206T359336570B 001-5029-521:42-10 28.15 06-14 AIC 3604570411199B 001-5029-521.42-10 55.86 Police Department Records Division Total. $926.54 i F 18 Page 7 Gate: 7114/2410 City of Port Angeles City Council Expenditure Report rY From: 612612010 To: 7/9/2010 Vendor Description Account Number Invoice Amount Police Department Department Total: $10,808.87 ADVANCED TRAVEL Mtg CCF❑ If Attny-McKeen 001-6010-522.31-01 15.25 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-6010-522.4210 2.52 06-13 A1C 0172134468001 001-6010-522.42-11 0.72 CAPACITY PROVISIONING INC NETWORK SERVICES 001-6010-522.42-12 172.00 OWEST 06-14 AIC 3604571535571B 001-6010-522.42-10 2.44 06-14 A1C 3604570968343B 001-6010-522.42-10 3.24 06-14 A1C 36045708315588 001-6010-522.42-10 1.62 06-14 AIC 3604576684085B 001-6010-522.42-10 10.22 06-23 A1C 206T302306084B 001-6010-522.42-10 28.88 06-23 AIC 206T310164584B 001-6010-522.42-10 39.41 06-16 A1C 206T359336570B 001-6010-522,42-10 39.41 06-14 A1C 3 6 04 5704 1 1 1 99B 001-6010-522.42-10 78.21 06-14 A1C 3604571535571B 001-6010-522.42-11 0.70 06-14 A1C 36045709683438 001-6010-522.42-11 0.93 06-14 AIC 36048708315588 001-6010-522.42-11 0.46 06-14 AIC 3604576684085B 001-6010-522.42-11 2.92 06-23 AIC 206T302306084B 001-6010-522.42-11 8.25 06-23 AIC 206T310164584B 001-6010-522.42-11 11.26 06-16 A1C 206T359336570B 001-6010-522.42-11 11.26 06-14 A1C 3604570411199B 001-6010-522,42-11 22.34 Fire Department Fire Administration Division Total: $452A4 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 0011-6020-522.42-10 2.34 OWEST 06-14 A1C 3604571535571B 001-6020-522.42-10 2.26 06-14 AIC 3604570968343B 001-6020-522.42-10 3.01 06-14 A1C 3604570831558B 001-6020-522,42-10 1.50 06-14 AIC 36045766840858 001-6020-522,42-10 9.49 06-23 A1C 206T302306084B 001-6020-522.42-10 26M 06-23 AIC 20BT310164584B 001-6020-522.42-10 36.59 06-16 AIC 206T359336570B 001-6020-522,42-10 36.59 06-14 A1C 360457041 1 1 99B 001-6020-522.42-10 72.62 VERIZON WIRELESS 06-15 a/c 264395724-00001 001-6020-522.42-10 25.54 Fire Department Fire Supression Division Total: $216.76 AT&T BUSINESS SERVICE 06-13 A1C 0172134-468001 001-6021-522,42-10 0.17 CIWEST 06-14 A1C 3604571535571B 001-6021-522.42-10 0,17 06-14 A1C 3604570968343B 001-6021-522,42-10 0.23 06-14 AIC 3604570831558B 001-6021-522.42-10 0.12 06-14 AIC 3604576684085B 001-602.1-522.42-10 0.74 06-23 A1C 206T302306084B 001-6021-522.42-10 2.06 06-23 A1C 206T310164584B 001-6021-522.42-10 2.81 06-16 A1C 206T359336570B 001-6021-522.42-10 2.81 06-14 AIC 3604570411199B 001-6021-522.42-10 5.59 F -1g Page 8 5 ccrn . Al "�� Date: 7/14/2010 City of Port Angeles City Council Expenditure Report From: 6/26/2010 To: 71912010 Vendor Description Account Number invoice Amount Fire Department Fire Volunteers Division Total: $14.70 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-6030-522.42-10 0.36 QINEST 06-14 AIC 3604571535571B 001-6030-522,42-10 0.35 06-14 AIC 36045709683436 001-6030-522.42-10 0.46 06-14 AIC 36045708315586 001-6030-522,42-10 0.23 06-14 AIC 36045766840858 001-6030-522.42-10 1.46 06-23 AIC 206T3023060846 001-6030-522.42-10 4.13 06-23 AIC 206T310164584B 001-6030-522.42-10 5.63 06-16 A1C 206T359336570B 001-6030-522.42-10 5.63 06-14 A1C 360457041 1 1 99B 001-6030-522.42-10 11.17 Fire Department Fire Prevention Division Total: $29.42 ADVANCED TRAVEL TestinglMtgs-Bogues 001-6040-522.43-10 113.55 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-6040-522.42-10 0.36 OWEST 06-14 AIC 3604571535571B 001-6040-522.42-10 0.36 06-14 AIC 3604570968343B 001-6040-522.42-10 0.46 06-14 A1C 3604570831558B 001-6040-522.42-10 0.23 06-14 A1C 36045766840858 001-6040-522.42-10 1.46 06-23 AIC 206T302306084B 001-6040-522.42-10 4.13 06-23 AIC 206T310164584B 001-6040-522.42-10 5.63 06-16 AIC 206T359336570B 001-6040-522.42-10 5.63 06-14 A1C 3604570411199B 001-6040-522.42-10 11.17 VEdIZON WIRELESS 06-10 a/c 571099962-00001 001-6040-522.42-10 34.65 Fire Department Fire Training Division Total: $177.63 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 001-6060525.42-10 1.62 QWEST 06-14 AIC 3604571535571B 001-6060-525.42-10 1.57 06-14 A1C 3604570968343B 001-6060-525.42-10 2.08 06-14 AIC 35045708315588 001-6060-525.42-10 1,04 06-14 AIC 36045766840858 001-6060-525.42-10 6.57 06-23 AIC 206T302306084B 001-6060-525.42-10 18.57 06-23 AIC 206T310164584B 001-6060-525.42-10 25.33 06-16 AIC 206T359336570B 001-6060525.42-10 25.33 06-14 A1C 36045704111998 001-6060525.42-10 50.28 Fire Department Emergency Management Division Total: $132.39 Fire Department Department Total. $1,022.94 ADVANCED TRAVEL Traffic Engineering -Burke 001-7010-532.43-10 376.70 APWA Ping -Cutler 001-7010-532.43-10 191.16 i Hwy Runoff Trn-Mahlurn 001-7010-532.43-10 435.74 Cityworks CMIVS-MP 001-7010-532.43-10 294.90 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-7010-532.42-10 5.57 CAPACITY PROVISIONING INC NETWORK SERVICES 001-7010-532.42-10 108.40 COMPLETE LINE, THE NOTEBOOKS/FILE LABELS 001-7010-532.31-01 114.32 PLOTTING SUPPLIES 001-7010-532.31-01 249.75 F -20 Page 9 Date: 7/14/2010 City of Part Angeles City Council Expenditure Report From: 6/26/2010 To: 71912670 Vendor Description••. Account Number Invoice Amount COMPLETE LINE, THE PLOTTING SUPPLIES 001-7010-532.31-01 361.13 PLOTTING SUPPLIES 001-7010-532.31-01 1,354.96 PLOTTING SUPPLIES 001-7010-532.31-01 452.68 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-7010-532.45-31 638.93 ESRI INC SUPPLIES 001-7010-532.48-02 14,417.20 GREAT AMERICA LEASJNG CORP JUNE COPIER LEASE 001-7010-532.45-31 760.16 OLYMPIC STATIONERS INC FILE FOLDERS 001-7010-532.31-01 148.59 POST -IT PADS 001-7010-532.31-01 65.77 QWEST 06-14 A1C 3604571535571 B 001-7010-532.42-10 5.39 06-14 A1C 3604570968343B 001-7010-532.42-10 7.17 06-14 A1C 36045708315588 001-7010-532.42-10 3.58 06-14 A1C 3604576684085B 001-7010-532.42-10 22.64 06-23 A1C 206T302306084B 001-7010-532.42-10 63.95 06-23 AIC 206T310164684B 001-7010-532.42-10 87.26 06-16 A1C 206T359336570B 001-7010-532,42-10 87.26 06-14 A1C 36045704111998 001-7010-532.42-10 173.17 VERIZON WIRELESS 06-22 a/c 571136182-00001 001-7010-532.42-10 49.97 Public Works -Gen Fnd Pub Wks Administration Division "Total: $20,476.35 Public Works -Gen Fnd Department Total: $20,476.35 ADVANCED TRAVEL WRPA Conf-Bonine 001-8010-574.43-10 751.57 AMSAN OLYMPIC SUPPLY OFFICE 'SUPPLIES, GENERAL 001-8010-574.31-01 169.38 ASM SIGNS MISC PROFESSIONAL SERVICE 001-8010-574.41-50 1,029.80 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-8010-574.42-10 0.54 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 001-8010-574,45-31 39.21 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8010-574.31-01 505.81 OFFICE SUPPLIES, GENERAL 001-8010-574.31-01 211.72 SUPPLIES 001-8010-574.31-01 262.74 SUPPLIES 001-8010-574.31-01 36.64 QWEST 06-14 A1C 3604571535571 B 001-8010-574.42-10 0.52 06-14 AIC 36045709683438 001-8010-574.42-10 0.69 06-14 A1C 36045708315588 001-8010-574.42-10 0.35 06-14 AIC 3604576684085B 001-8010-574.42-10 2.19 06-23 A1C 206T302306084B 001-8010-574.42-10 6.19 06-23 AIC 206T310164584B 001-8010-574.42-10 8.44 06-16 AIC 206T359336570B 001-8010-574.42-10 8.44 06-14 AIC 3604570411199B 001-8010-574.42-10 16.76 Parks Dept Parks Administration Division Total: $3,050.99 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-8012-555.42-10 0.54 CAPACITY PROVISIONING INC NETWORK SERVICES 001-8012-555,42-12 172.00 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS JUNE COPY COSTS 001-8012-555.45-31 001-8012-555.45-31 42.32 36.19 GREAT AMERICA LEASING CORP JUNE COPIER LEASE 001-8012-555.45-31 171.56 F-21 Page 10 Vendor OWEST Parks Dept ANGELES MILLWORK & LUMBER CO AT&T BUSINESS SERVICE BAXTER AUTO PARTS #15 BLAKE TILE & STONE, INC CAPACITY PROVISIONING INC CEDICONSOLIDATED ELEC DIST INC QWEST i I SUNSET Gfl-iT BEST HARDWARE Parks Dept ANGELES MILLWORK & LUMBER CO AT&T BUSINESS SERVICE BAILEY SIGNS & GRAPHICS BLAKE TILE & STONE, INC CAPACITY PROVISIONING INC Date! 7/1412010 City of Port Angeles City Council Expenditure Report From: 6/26/2010 To: 7/9/2010 40 [Description Account Number Invoice Amount 06-14 alp 36045770049478 001-8012-555.42-10 40.77 06-14 A1C 36045715355718 001-8012-555.42-10 0.52 06-14 A1C 36045709683438 001-8012-555.42-10 0.69 06-14 A1C 3604570831558B 001-8012-555.42-10 0.35 06-14 A1C 3604576684085B 001-8012-555.42-10 2.19 06-23 A1C 206T302306084B 001-8012-555.42-10 6.19 06-23 A1C 206T3101645846 001-8012-555.42-10 8.44 06-16 A1C 206T359336570B 001-8012-555.42-10 8.44 06-14 A1C 36045704111998 001-8012-555.42-10 16.76 Senior Center Division Total: $505.96 ROADIHWY MAT NONASPHALTIC 001-8050-536.31-20 22.98 PLUMBING EQUIP FUCT,SUPP 001-8050-536.31-20 48.77 06-13 A1C 0172134468001 001-8050-536.42-10 0.36 BELTS AND BELTING 001-8050-536.31-20 8.38 SEED,SOD,SOIL&INOCULANT 001-8050-536.31-20 77.56 NETWORK SERVICES 001-8050-536.42-12 172.00 ELECTRICAL EQUIP & SUPPLY 001-8050-536.31-20 37.61 06-14 A1C 3604571535571 B 001-8050-536.42-10 0.35 06-14 A1C 36045709683436 001-8050-536.42-10 0.46 06-14 AIC 36045708315588 001-8050-536.42-10 4.23 06-14 A1C 3604576684085B 001-8050-536.42-10 1.46 06-23 A1C 206T302306084B 001-8450-536.42-10 4.13 06-23 AIC 206T310164584B 001-8050-536.42-10 5.63 06-16 A1C 206T359336570B 001-8050-536.42-10 5.63 06-14 A1C 36045704111998 001-8050-536.42-10 11.17 RENTAL/LEASE EQUIPMENT 001-8050-536.45-30 14.09 Ocean View Cemetery Division Total. $410.81 HAND TOOLS ,POW&NON POWER 001-8080-575.31-20 26.44 PAINTS,COATINGS,WALLPAPER 001-8080-576.31-20 9.75 BRUSHES (NOT CLASSIFIED) 001-8080-576.31-20 4,87 HARDWARE,AND ALLIED ITEMS 001-8080-576,31-20 20.99 LUMBER& RELATED PRODUCTS 001-8080-576.31-20 81.34 LUMBER& RELATED PRODUCTS 001-8080-576.31-20 9.70 PAINTS, COATI NGS,WALLPAPER 001-8080-576.31-20 11.09 LUMBER& RELATED PRODUCTS 001-8080-576.31-20 41.89 LUMBER& RELATED PRODUCTS 001-8080-576.31-20 19.26 06-13 AIC 0172134468001 001-8080-576.42-10 1.80 MARKERS, PLAQUES,SIGNS 001-8080-576.31-20 260.16 NURSERY STOCK & SUPPLIES 001-8080-576.31-40 21.14 NURSERY STOCK & SUPPLIES 001-8080-576.31-40 57.07 SEED,SOD,SOIL&INOCULANT 001-8080-576.31-40 25.85 NETWORK SERVICES 001-8080-576.42-12 172.00 F-22 Page 11 • Date: 7/14/2010 City of Fort Angeles City Council. Expenditure Report From: 6/26/2090 To: 7/912010 Vendor Description Accent Number Invoice Amount CAPACITY PROVISIONING INC NETWORK SERVICES 001-8080-576.42-12 172.00 NETWORK SERVICES 001-8080-576.42-12 90.00 NETWORK SERVICES 001-8080-576.42-12 172.00 CEDICONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 001-8080-576.31-20 19.53 CONVEY SAFETY PRODUCTS FIRST AID & SAFETY EQUIP. 001-8080-576.31-20 132.26 HARTNAGEL BUILDING SUPPLY INC HARDWARE,AND ALLIED ITEMS 001-8080-576.31-20 30.76 LAWN EQUIPMENT SUPPLY LAWN MAINTENANCE EQUIP 001-8080-576.31-01 69.97 LAWN MAINTENANCE EQUIP 001-8080-576.31-01 57.67 LINCOLN INDUSTRIAL CORP METALS,BARS,PLATES, RODS 001-8080-576.31-20 61.78 ELIJAH HAMMEL TRAINING REGISTRATION REI 001-8080-576.43-10 150.00 PARKER PAINT MFG CO INC PAINTS,COATINGS,WALLPAPER 001-8080-576.31-20 28.73 PAINTS,COATINGS,WALLPAPER 001-8080-576.31-20 25.82 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES{EXCL 908 001-8080-576.49-01 66.89 PUGET SAFETY EQUIPMENT INC CLOTHING & APPAREL 001-8080-576.31-01 121.95 QWEST 06-14 A1C 3604571535571 B 001-8080-576.42-10 1.74 06-14 A1C 36045709683438 001-8080-576.42-10 2.31 06-14 A1C 3604570831558B 001-8080-576.42-10 1.16 06-14 A1C 3604576684085B 001-8080-576.42-10 7.30 06-23 A1C 206T30230608413 06-23 A1C 206T310164584B 001-8080-576.42-10 001-8080-576.42-10 20.63 28.15 06-16 A/C 206T359336570B 001-8080-576.42-10 28.15 06-14 A1C 36045704111998 001-8080-576.42-10 55.86 SUNSET DQ -IT BEST HARDWARE FASTENERS, FASTENING REVS 001-8080-576.31-20 18.66 LAWN MAINTENANCE EQUIP 001-8080-576.31-20 28.28 LAWN MAINTENANCE EQUIP 001-8080-576.31-20 36.12 HAND TOOLS ,POW&NON POWER 001-8080-576.31-20 14.20 FASTENERS, FASTENING DES 001-8080-576.31-20 14.76 RENTAL/LEASE EQUIPMENT 001-8080-576.45-30 21.14 SWAIN'S GENERAL STORE INC PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 71.32 THURMAN SUPPLY ELECTRICAL EQUIP & SUPPLY 001-8080-576.31-01 8.42 PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 6.43 PIPE FITTINGS 001-8080-576.31-20 9.18 PIPE FITTINGS 001-8080-576.31-20 20.44 PLUMBING EQUIP FIXT,SUPP 001-8080-576.31-20 10.85 ELECTRICAL EQUIP & SUPPLY 001-8080-576.31-20 19.59 ELECTRICAL EQUIP & SUPPLY 001-8080-576.31-20 33.82 VERIZON WIRELESS 06-22 a/c 571136182-00003 001-8080-576.42-10 93.91 Parks Dept Park Facilities Division Total: $2,515.13 FIERO MARINE LIFE CENTER MISC PROFESSIONAL SERVICE 001-8090-576.41-50 5,062.50 Parks Dept Marine Life Center Division Total: $5,062.50 Parks Dept Department Total: $11,546.39 THURMAN SUPPLY HARDWARE AND ALLIES} ITEMS 001-8112-555.31-20 20.90 F -23 Page 12 Date: 711412010 City of Port Angeles City Council .Expenditure Report General Fund Furry! Total: $134,361.44 is ANGELES MILLWORK & LUMBER CO HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 12.47 F-24 Page 13 From: 612612010 To: 7/9/2010 Vendor Description Account Number Invoice .Amount THURMAN SUPPLY PLUMBING EQUIP FIXT,SUPP 001-8112-555.31-20 22.24 Facilities Maintenance Senior tenter Facilities Division Total: $43.14 AMSAN OLYMPIC SUPPLY MACHINERY & HEAVY HRDWARE 001-8130-518.31-80 834.19 EDUCATIONAL SERVICES 001-8130-518,43-10 20.00 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 001-8130-518.42-10 4.17 QWEST 06-14 AIC 3604571535571B 001-8130-518.42-10 0,17 06-14 AIC 3604570968343B 001-8130-518.42-10 0.23 06-14 AIC 3604570831558B 001-8134-518.42-10 0.12 06-14 AJC 36045766840858 001-8134-518.42-10 0.74 06-23 A1C 2067302306084B 001-8130-518.42-10 2.06 06-23 AIC 2067310164584B 001-8130-518.42-10 2.81 06-16 A1C 206T359336570B 001-8130-518.42-10 2,81 06-14 A1C 360145704111998 001-8130-518.42-10 6.59 SWAIN'S GENERAL STORE INC CLEANING COMPOSITIONISOLV 001-8130-518.31-01 6.41 Facilities Maintenance Custodial/Janitorial Svcs Division Total: $871.30 AMSAN OLYMPIC SUPPLY PAPER & PLASTIC-DISPOSABL 041-8131-518.31-20 344.65 ANGELES MILLWORK & LUMBER CO LUMBER& RELATED PRODUCTS 001-8131-518.31-20 6.66 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 - 001-8131-518.42-10 0.17 CEDICONSQLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 001-8131-518.31-20 128.29 ELECTRICAL EQUIP & SUPPLY 001-8131-618.31-20 96.78 DEPT OF LABOR & INDUSTRIES ENVIRONMENTAL&ECOLOGICAL 001-8131-618.31-20 218.80 HARTNAGEL BUILDING SUPPLY INC HARDWARE,AND ALLIED ITEMS 001-8131-518.31-20 6.88 JOHNSTONE SUPPLY INC ELECTRICAL EQUIP & SUPPLY 001-8131-518.31-20 36.77 PARKER PAINT MFG CO INC PAINTS,COATINGS,WALLPAPER 001-8131-518.31-20 18.88 PAINTS,COATINGS,WALLPAPER 001-8131-518.31-20 278,02 BRUSHES (NOT CLASSIFIED) 001-8131-518.31-20 25.73 QWEST 06-16 a/c 206T355724768B 001-8131-518.42-10 57.46 06-14 A1C 3604571535571B 0011-8131-518.42-10 0.17 06-14 A1C 3604570968343B 001-8131-518.42-10 0.23 06-14 A1C 3604570831558B 001-8131-518.42-10 0.12 06-14 A1C 3604576684085B 001-8131-518.42-10 0.74 06-23 A1C 206T302306084B 001-8131-518.42-10 2.06 06-23 A1C 206T310164584B 001-8131-518.42-10 2.81 06-16 AIC 206T359336570B 001-8131-518.42-10 2.81 06-14 AIC 36045704111998 001-8131-518.42-10 5,59 06-05 a/c 36045239542688 001-8131-518.42-10 266.76 THURMAN SUPPLY PLUMBING EQUIP FIXT,SUPP 001-8131-518.31-20 15.76 PLUMBING EQUIP FIXT,SUPP 001-8131-518.31-20 10.67 Facilities Maintenance Central Svcs Facilities Division Total: $1,525.81. Facilities Maintenance Department Total: $2,440.25 General Fund Furry! Total: $134,361.44 is ANGELES MILLWORK & LUMBER CO HARDWARE,AND ALLIED ITEMS 102-7230-542.31-20 12.47 F-24 Page 13 0%''"14' City of Port Angeles Date: 7/14/2010 City Council Expenditure Report • n,'•'; �t 4. From: 6/2612010 To: 7/9/2010 Vendor Description Account Number Invoice Amount ANGELES MILLWORK & LUMBER CO PAINTS,COATINGS,WALLPAPER 102-7230-542.31-20 21.44 HAND TOOLS ,POW&NON POWER 102-7230-542.35-01 17.05 HAND TOOLS ,POW&NON POWER 102-7230-542.35-01 7.31 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 102-7230-542.42-10 0.90 BLAKE TILE & STONE, INC HAND TOOLS ,POW&NON POWER 102-7230-542.31-20 46.95 ROAD/HWY MAT NONASPHALTIC 102-7230-542.31-20 80.49 CAPACITY PROVISIONING INC NETWORK SERVICES 102-7230-542.42-12 172.00 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 102-7230-542.31-20 225.89 ELECTRICAL EQUIP & SUPPLY 102-7230-542.31-20 47.98 ELECTRICAL EQUIP & SUPPLY 102-7230-542.31-20 165.85 ELECTRICAL EQUIP & SUPPLY 102-7230-542.31-20 36.77 FEDERAL EXPRESS CORP Shipping Chgs pe 6-25 102-7230-542.42-10 8.93 HOLCOMB & COMPANY, D ROAD/HWY MAT NONASPHALTIC 102-7230-542.31-20 40.63 LAKESIDE INDUSTRIES INC ROAD/HWY MATERIALS ASPHLT 102-7230-542.31-20 289.78 ROAD/HWY MATERIALS ASPHLT 102-7230-542.31-20 186.42 LINCOLN INDUSTRIAL CORP METALS, BARS, PLATES, RODS 102-7230-542.31-20 132.79 OLYMPIC STATIONERS INC SUPPLIES 102-7230-542.31-01 25.41 PARKER PAINT MFG CO INC BRUSHES (NOT CLASSIFIED) 102-7230-542.31-20 9.84 BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 102-7230-542.31-01 66.89 •PROGRESSIVE QWEST 06-14 A/C 3604571535571 B 102-7230-542.42-10 0.87 06-14 A/C 3604570968343B 102-7230-542.42-10 1.16 06-14 A/C 3604570831558B 102-7230-542.42-10 0.58 06-14 A/C 36045766840856 102-7230-542.42-10 3.65 06-23 A/C 206T302306084B 102-7230-542.42-10 10.32 06-23 A/C 206T310164584B 102-7230-542.42-10 14.07 06-16 A/C 206T359336570B 102-7230-542.42-10 14.07 06-14 A/C 3604570411199B 102-7230-542.42-10 27.93 SWAIN'S GENERAL STORE INC HAND TOOLS, POW&NON POWER 102-7230-542.35-01 83.19 VERIZON WIRELESS 06-22 a/c 571136182-00003 102-7230-542.42-10 95.14 Public Works -Street Street Division Total: $1,846.77 Public Works -Street Department Total: $1,846.77 Street Fund Fund Total: $1,846.77 ADVANCED TRAVEL Rec Consvervation-Korcz 103-1511-558.43-10 38.52 CDBG Trng-Roberds 103-1511-558.43-10 136.25 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 103-1511-558.42-10 0.09 QWEST 06-14 A/C 3604571535571B 103-1511-558.42-10 0.09 06-14 A/C 36045709683438 103-1511-558.42-10 0.12 06-14 A/C 3604570831558B 103-1511-558.42-10 0.06 06-14 A/C 3604576684085B 103-1511-558.42-10 0.37 06-23 A/C 206T302306084B 103-1511-558.42-10 1.03 • 06-23 A/C 206T310164584B 103-1511-558.42-10 1.41 06-16 A/C 206T359336570B 103-1511-558.42-10 1.41 F-25 Page 14 6 •ctrl Date: 7!14/2010 ►..�, City of Port Angeles iv loft City Council Expenditure Report `` �•* �� From: 6126/2010 To: 7/912010 O Vendor Description Account Number Invoice Amount OWEST 06-14 A/C 3604570411199B 103-1511-558.42-10 2.79 SERENITY HOUSE CONSULTING SERVICES 103-1511-558.49-91 2,951.19 Economic Development Economic Development Division Total: $3,133.33 AHRENS, KENNETH E Economic Development Department Total: $3,133.33 AT&T BUSINESS SERVICE Economic Development Fund Total: $3,133.33 PUBLIC WORKS BOARD(EFT) Marine Drive Reconst 105-7840-591.71-10 36,947.37 GLOBALSTAR USA 8th & Peabody Crk Clvrt 105-7840-591.71-10 4,547.37 PORT ANGELES POLICE DEPARTMENT Marine Drive Reconst 105-7840-592.81-10 2,216.84 QWEST 8th & Peabody Crk Clvrt 105-7840-592.81-10 136.42 Real Estate Excise Tax Real Estate Excise Tax -1 Division Total: $43,848.00 Real Estate Excise Tax Department Total: $43,848.00 Real Estate Excise Tax #1 Fund Total: $43,848.00 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 106-1512-558.42-10 0.17 QWEST 06-14 A/C 3604571535571B 106-1512-558.42-10 0.17 06-14 A/C 3604570968343B 106-1512-558.42-10 0.23 06-14 A/C 3604570831558B 106-1512-558.42-10 0.12 06-14 A/C 3604576684085B 106-1512-558.42-10 0.73 06-23 A/C 206T302306084B 106-1512-558.42-10 2.06 06-23 A/C 206T310164584B 106-1512-558.42-10 2.81 06-16 A/C 206T359336570B 106-1512-558.42-10 2.81 06-14 A/C 36045704111996 106-1512-558.42-10 5.59 VERIZON WIRELESS 06-15 a/c 264230412-00003 106-1512-558.42-10 63.10 Economic Development Archaeologist Division Total: $77.79 Economic Development Department Total: $77.79 Page 15 Cultural Resources Fund Total: $77.79 ADVANCED TRAVEL APCO Conf-Bell 107-5160-528.43-10 375.22 APCO Conf-O'Connor 107-5160-528.43-10 390.07 APCO/911-Romberg 107-5160-528.43-10 944.20 AHRENS, KENNETH E Rental Fees 107-5160-528.45-30 700.00 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 107-5160-528.42-10 4.87 CAPACITY PROVISIONING INC NETWORK SERVICES 107-5160-528.42-10 165.00 GLOBALSTAR USA 06-16 a/c 1.50018859 107-5160-528.42-10 42.18 PORT ANGELES POLICE DEPARTMENT AA Batteries 107-5160-528.31-01 19.50 QWEST 06-23 a/c 206T411918873B 107-5160-528.42-10 57.46 06-14 A/C 3604571535571B 107-5160-528.42-10 4.70 06-14 A/C 36045709683438 107-5160-528.42-10 6.24 06-14 A/C 3604570831558B 107-5160-528.42-10 3.12 06-14 A/C 3604576684085B 107-5160-528.42-10 19.72 06-23 A/C 206T302306084B 107-5160-528.42-10 55.70 06-23 A/C 206T310164584B 107-5160-528.42-10 76.00 06-16 A/C 206T359336570B 107-5160-528.42-10 76.00 06-14 A/C 3604570411199B 107-5160-528.42-10 15 63 F Page 15 0,.Frq ., Date: 7/14/2010 City 114i201a City of Port Angeles City Council Expenditure Report y;..,•x From: 6/2612090 To: 7/9/2090 Vendor description Account Number Invoice Amount SQUAD ROOM EMBLEMS BUSINESS CARDS D HOMAN 107-5160-528.31-01 85.12 ROMBERG - BUSINESS CARD'S 107-5160-528.31-01 85.10 WA STATE PATROL POWER GENERATION EQUIPMEN 107-5160-528.48-10 2,010.00 Pencom Pencom Division Total: $5,271.03 Pencom Department Total: $5,271.03 Pencom Fund Fund Total: $5,271,03 CAPACITY PROVISIONING INC NETWORK SERVICES 121-8021-576A2-12 172.00 Parks Dept Wm Snore Mem Pool Dist Division Total: $172.00 Parks Dept Department Total: $172.00 AMSAN OLYMPIC SUPPLY WATER&SEWER TREATING CHEIV 121-8121-576.31-05 138.58 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 121-8121-576,31-20 44.27 HARTNAGEL BUILDING SUPPLY INC HARDWARE,AND ALLIED ITEMS 121-8121-576.31-20 60.83 SUNSET DO -IT BEST HARDWARE FASTENERS, FASTENING DEVS 121-8121-576.31-20 3.34 MATERIAL HNDLING&STOR EQP 121-8121-576.31-20 20.33 SWAIN'S GENERAL STORE INC PAINTS,COATINGS,WALLPAPER 121-8121-576.31-20 19.32 HARDWARE,AND ALLIED ITEMS 121-8121-575.31-20 34.85 BRUSHES (NOT CLASSIFIED) 121-8121-576.31-20 17.86 HARDWARE,AND ALLIED ITEMS 121-8121-575.31-20 17.20 HARDWARE,AND ALLIED ITEMS 121-8121-576.31-20 -17.20 HARDWARE,AND ALLIED ITEMS 121-8121-576.31-20 17.20 THURMAN SUPPLY PLUMBING EQUIP FIXT,SUPP 121-8121-576.31-20 24.04 PLUMBING EQUIP FIXT,SUPP 121-8121-576.31-20 45.58 HARDWARE,AND ALLIED ITEMS 121-8121-576.31-20 49.91 HARDWARE,AND ALLIED ITEMS 121-8121-576.31-20 -31.24 PLUMBING EQUIP FIXT,SUPP 121-8121-576.31-20 9.13 Facilities Maintenance Pool Facilities Division Total: $454.10 Facilities Maintenance ,Department Total: $454.10 Wm Shor Mem Pool Dist Fund Total: $626.10 PUBLIC WORKS BOARD(EFT) 8th St Reconstruction 160-7841-591.71-10 80,426.92 8th St Reconstruction 160-7841-592.81-10 8,846.96 Real Estate Excise Tax Real Estate Excise Tax -2 Division Total: $89,273.88 Real Estate Excise Tax Department Total: $89,273.88 Real Estate Excise Tax #2 Fund Total: $89,273.88 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 174-8221-574.42-10 0.17 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 174-8221-574,45-31 69.37 PIMENTEL, HENRY UMPIRE PAYMENT 174-8221-574.41-50 506.00 OWEST 06-14 A1C 3604571535571 B 174-8221-574.42-10 0.17 06-14 A1C 3604570968343B 174-8221-574.42-10 0.23 06-14 A1C 3604570831558B 174-8221-574A2-10 0.12 06-14 A1C 36045766840858 174-8221-574.42-10 0.74 06-23 A1C 206T302306084B 174-8221-574.42-10 2.06 F-27 Page 16 �c7 Date: 7/14/2010 City of Part Angeles City Council Expenditure Report From: 6/26/2010 To: 71912010 41 Vender Description Account Number Invoice Amount OWEST 06-23 AIC 206T310164584B 174-8221-574.42-10 2.81 06-16 AIC 206T359336570B 174-8221-574.42-10 2.81 06-14 AIC 36045704111998 174-8221-574.42-10 5.59 RAMSEY, SCOTT UMPIRE PAYMENT 174-8221-574.41-50 682.00 ROONEY, RANDY L UMPIRE PAYMENT 174-8221-574.41-50 330.00 THAYER, JEFFREY UMPIRE PAYMENT 174-8221-574.41-50 572.00 WHITEN, BILL P UMPIRE PAYMENT 174-8221-574.41-50 396.00 Recreation Acfivities Sports Programs Division Total: $2,570.07 AT&T BUSINESS SERVICE 06-13 PJC 0172134468001 174-8222-574.42-10 0.17 AT&T MOBILITY 06-26 alp 994753890 174-8222-574.42-10 18.18 Roaming Charges -Estes 174-8222-574.42-10 54.47 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 174-8222-574.45-31 69.37 QWEST 06-14 A1C 36045715355716 174-8222-574.42-10 0.17 06-14 A/C 36045709683436 174-8222-574.42-10 0.23 06-14 A1C 36045708315586 174-8222-574.42-10 0.12 06-14 AIC 36045766840856 174-8222-574.42-10 0.74 06-23 NC 206T302306084B 174-8222-574.42-10 2.06 06-23 PJC 206T310164584B 174-8222-574.42-10 2.81 06-16 A1C 206T359336570B 174-8222-574.42-10 2.81 06-14 AIC 3604570411199B 174-8222-574.42-10 5.59 Recreation Activities Special Events Division Total: $156.72 AT&T BUSINESS SERVICE 06-13 AIC 0172134468001 174-8224-574.42-10 0.17 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 174-8224-574.45-31 69.37 QWEST 06-14 A1C 36045715355718 174-8224-574.42-10 0.17 06-14 A1C 36045709683438 174-8224-574.42-10 0.23 06-14 AIC 36045708315588 174-8224-574.42-10 0.12 06-14 A1C 3604576684085B 174-8224-574.42-10 0.74 06-23 AIC 206T302306084B 174-8224-574.42-10 2.06 06-23 AIC 206T310164584B 174-8224-574.42.-10 2.81 06-16 AIC 206T3593365706 174-8224-574.42-10 2.81 i 06-14 AIC 3604570411199B 174-8224-574.42-10 5.59 Recreation Activities YouthlFamily Programs Division Total: $84.07 Recreation Activities Department Total: $2,810.86 Recreational Activities Fund Total: $2,810.86 Catlela's Retail Office SCOUTING CAM FOR DIETS K S 182-5423-521.31-01 650.97 Drug Task Force Drug Task Force Division Total: $650.97 Drug Task Force Department Total: $650.97 Drug Task Force Fund Total: $650.97 PRIMO CONSTRUCTION INC Release Retainage 310-0000-223.40-00 27,303.92 Division Total. $27,303.92 Department Total: $27,303.92 FIERO MARINE LIFE CENTER LODGING TAX GRANT 310-7919-594.65-10 13,000.00 F-28 Page 17 I-] • .3; 0.F74 Date: 7/1412010 City of Port Angeles IL City Council Expenditure Report `fr ;'.• From: 612612010 To: 719/2010 Vendor Description Account Number Invoice Amount SUNSET DO -IT BEST HARDWARE PLASTIC PIPE 310-7919-594.65-10 662.97 Capital Projects -Pub Wks GF -Pub Wks Projects Division Total: $13,652.97 HAMMOND COLLIER WADE LIVINGSTON, RACE STREET SLIDE 310-7930-595.41-50 2,294.30 PERTEET, INC FEMA PROJECTS 310-7930-595.41-50 6,202.50 FEMA PROJECTS 310-7930-595.41-50 1,980.00 FEMA PROJECTS 310-7930-595.41-50 535.04 FEMA PROJECTS 310-7930-595.41-50 330.00 Capital Projects -Pub Wks GF -Street Projects Division Total: $11,341.80 Capital Projects -Pub Wks Department Total: $25,004.77 BRUCE DEES & ASSOCIATES, LLC CIVIC FIELDS UPGRADES ASS 310-8985-594.65-10 12,408.99 Capital Proj-Parks & Rec Misc Parks Projects Division Total: $12,408.90 Capital Proj-Parks & Rec Department Total: $12,408.90 Capital Improvement Fund Total: $64,717.59 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 353.17 GENERAL PACIFIC INC ELECTRICAL EQUIP & SUPPLY 401-4000-141.40-00 1,880.54 ELECTRICAL CABLES & WIRES 401-0000-141.40-00 3,576.55 HUGHES UTILITIES LTD ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 1,471.53 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 1,299.44 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 4,025.98 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 1,764.75 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 987.83 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 168.58 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 1,054.19 MCMASTER-CARR SUPPLY CO AUTO & TRUCK MAINT. ITEMS 401-0000-237.00-00 -6.57 AUTO SHOP EQUIPMENT & SUP 401-0000-237.00-00 -6.58 AYERS, CHRISTINE FINAL BILL REFUND 401-0000-122.10-99 96.70 BEAUVIS, ANDREW FINAL BILL REFUND 401-0000-122.10-99 104.54 BOCOOK, MELINDA J FINAL BILL REFUND 401-0000-122.10-99 38.5E CORNING, MATTHEW G FINAL BILL REFUND 401-0000-122.10-99 162.68 DEWALD, JAQUELYN M K FINAL BILL REFUND 401-0000-122.14-99 169.65 DOMINGUEZ RUEDA, ABEL FINAL BILL REFUND 401-0000-122.10-99 44.38 DUENAS-GOMEZ, NELIDA FINAL BILL REFUND 401-0000-122.10-99 154.89 EDGINGTON, ROBERT D FINAL BILL REFUND 401-0000-122.10-99 270.58 FALL PROPERTIES LLC FINAL CREDIT -529 WHIDBY 401-0000-122.10-99 74.98 FINAL CREDIT -525 WHIDBY 401-0000-122.10-99 44.57 GOWDY, JON FINAL BILL REFUND 401-0000-122.10-99 109.48 GRIFFIN, ELSIE R OVERPAYMENT -738 W 4TH ST 401-'1000-122.10-99 0.51 INGRAM, TALEAH M OVERPAYMENT -418 E 7TH ST 401-0000-122.10-99 36.80 KENT, JOHN FINAL BILL REFUND 401-0000-122.10-99 137.23 KOLB, LONA LAUBE'R, GINA SUE FINAL BILL REFUND FINAL BILL REFUND 401-0000-122.101-99 401-0000-122.10-99 6,82 72.95 MARTYN, DUSTIN F FINAL BILL REFUND 401-0000-122.10-99 88.87 F-29 Page 18 Date: 7/14/2010 City of Pori Angeles City Council. Expenditure Report r� From: 8/2602090 To: 7191201 a 40 Vendor MASTERSON, DEBRA SUE MORLAN, MICHAEL L NAKI, PENELOPE E NATIONAL PARK SERVICE POLYAK, CHRISTIAN T RIDER, EVERETT SVENSON, CRAIG M WATSON, JAMIE L WELCH, EMILY D WHARTON, WESLEY WHITE, LINDSAY B WILLIAMS. KYLE W PACIFIC METERING INC PUD #1 OF CLALLAM COUNTY SELLSTRQMIRTC WESCO DISTRIBUTION INC Description FINAL BILL REFUND FINAL BILL REFUND FINAL BILL REFUND FINAL CREDIT BALANCE FINAL BILL REFUND BUDGET CREDIT REFUND FINAL BILL REFUND FINAL BILL REFUND FINAL BILL REFUND FINAL BILL REFUND FINAL BILL REFUND FINAL BILL REFUND FARE COLLECTION EQUIP&SUP ELECTRICAL EQUIP & SUPPLY SHIPPING AND HANDLING ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY ELECTRICAL EQUIP & SUPPLY Account Number 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0004-122.10-99 401-0000-122.10-99 401-0000-122.10-99 401-0000-237.00-00 401-0000-141.40-00 401-0000-237.00-00 401-0000-141.40-00 401-0000-141.40-00 401-0000-141'40'00 401-0000-141.40-00 401-0000-141.40-00 Division Total: Department Total. Invoice Amount 142.15 445.79 81.68 5,033.52 93.34 300.86 89.55 115.50 10.34 200.42 26.79 87.65 -19.60 159.11 -23.85 710.07 780.19 469.81 1,530.07 5,429.52 $33,846.51 $33,846.51 AT&T BUSINESS SERVICE 06-13 A1C 0172134468001 401-7111-533.42-10 0.54 CAPACITY PROVISIONING INC NETWORK SERVICES 401-7111-533.42-12 225.24 QWEST 06-14 A1C 360457153557113 401-7111-533.42-10 0.52 06-14 A1C 36045709683438 401-7111-533.42-10 0.69 06-14 AJC 35045708315586 401-7111-533.42-10 0.30 06-14 A1C 3604576684085B 401-7111-533.42-10 2.19 06-23 A1C 206T302306084B 401-7191-533.42-10 6.19 06-23 A1C 206T310164584B 401-7111-533.42-10 8.49 06-16 A1C 206T359336570B 401-7111-533.42-10 8.49 06-14 A1C 36045704111998 401-7111-533.42-10 16.76 Public Warks -Electric Engineering -Electric Division Total: $269.41 ADVANCED TRAVEL WPAG Mtg-Dunbar 401-7120-533.43-10 98.70 Rate Design Wkshop-Lusk 401-7120-533.43-10 355.20 AT&T BUSINESS SERVICE 06-13 NC 0172134468001 401-7120-533.42-10 0.54 CAPACITY PROVISIONING INC NETWORK SERVICES 401-7120-533.42-12 225.24 QWEST 06-14 A1C 3604571535571B 401-7120-533.42-10 0.52 06-14 A1C 360457096B343B 401-7120-533.42-10 0.69 06-14 AIC 3604570831558B 401-7120-533.42-10 0.35 06-14 AIC 3604576684085B 401-7120-533.42-10 2.19 06-23 A1C 20673023060846 401-7120-533.42-10 6.19 F-30 Page 19 z� Date: 7/1412010 City of Port Angeles City Council Expenditure Report From: 612612010 To: 719/2010 Vendor Description Account Number Invoice Amount QWEST 06-23 A1C 206T310164584B 401-7120-533.42-10 8.44 06-16 AIC 206T359336570B 401-7120-533.42-10 8.44 06-14 AIC 36045704111998 401-7120-533.42-10 16.76 Public Works -Electric Power Systems Division Total: $723.26 ADVANCED TRAVEL SEL Seminar-AHITE 401-7180-533.43-10 479.54 Westrn Power Conf-TE 401-7180-533.43-10 792.20 AMSAN OLYMPIC SUPPLY HOSP SURG ACCES & SUNDRIS 401-7180-533.31-01 650.91 ANGELES MILLWORK & LUMBER CO ELECTRICAL EQUIP & SUPPLY 401-7180-533.3402 18.30 AT&T BUSINESS SERVICE 06-13 A1C 0172.134468001 401-7180-533.42-10 4.31 BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 401-7180-533.34-02 19.96 CAPACITY PROVISIONING INC NETWORK SERVICES 401-7180-533.42-12 359.21 NETWORK SERVICES 401-7180-533.47-10 216.80 CAPTAIN TS PRINTING,SILK SCR,TYPSET 401-7180-533.48-10 81.35 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 880.44 ELECTRICAL EQUIP & SUPPLY 401-7184-533.34-02 27.10 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 120.54 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 129.26 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 74,63 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 22.23 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 146.18 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 35.06 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 112.30 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 210.30 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 9.84 FASTENAL INDUSTRIAL RAGS,SHOP TOWELS,WIPING 401-7180-533.31-01 20.79 GRAINGER OPTICAL EQUIPACESS& SUPP 401-7180-533.31-01 416.48 HEWLETT-PACKARD COMPANY COMPUTERS,DP & WORD PROC. 401-7180-533.31-60 568.02 IMSA NW CERTIFICATION HUMAN SERVICES 401-7180-533.43-10 300.00 INSIGHT PUBLIC SECTOR COMPUTER HARDWARE&PERIPHI 401-7184-533.31-60 421.94 LINCOLN INDUSTRIAL CORP ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 190.78 MASON COUNTY PUD 43 EDUCATIONAL SERVICES 401-7180-533.41-50 2,218.46 MCMASTER-CARR SUPPLY CO AUTO & TRUCK MAINT. ITEMS 401-7184-533.34-02 84.69 AUTO SHOP EQUIPMENT& SUP 401-7180-533.34-02 84.91 NORTH COAST ELECTRIC COMPANY ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 3,113.83 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 27.09 OLYMPIC LAUNDRY & DRY CLEANERS LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 67.38 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 67.38 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 67.38 LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 67.38 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 401-7180-533.34-02 19.12 PACIFIC METERING INC FARE COLLECTION EQUIP&SUP 401-7180-533.34-02 252.86 PORT ANGELES POWER EQUIPMENT EQUIP MAINT & REPAIR SERV 401-7180-533.48-10 109.41 F-31 Page 20 y 't �+ Date: 7/1412010 City of Port Angeles w lam City Council Expenditure Report F ,-rt• 7=° From: 6126/2010 To: 7/9/2010 Vendor Description Account Number Invoice Amount PORT OF PORT ANGELES Lease Fees 401-7180-533,45-30 4,100.00 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 401-7180-533.31-01 66.92 PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE 401-7180-533.41-50 13.64 MISC PROFESSIONAL SERVICE 401-7180-533,41-50 13.99 MISC PROFESSIONAL SERVICE 401-7180-533,41-50 32.76 MISC PROFESSIONAL SERVICE 401-7180-533.41-50 85.62 QWEST 06-16 a1c 206T323881998B 401-7180-533.42-10 54.54 06-16 a/c 206T326157000B 401-7180-533.42-10 54.54 06-16 a/c 206T322760994B 401-7180-533.42-10 54.54 06-16 a/c 206T323879996B 401-7180-533.42-10 54.54 06-14 A1C 3604571535571 B 401-7180-533.42-10 4.17 06-14 A1C 3604570968343B 401-7180-533.42-10 5.55 06-14 A1C 36045708315588 401-7180-533.42-10 2.78 06-14 A1C 3604576684085B 401-7180-533.42-10 17.53 06-23 A1C 206T302306084B 401-7180-533.42-10 49.51 06-23 A1C 206T310164584B 401-7180-533.42-10 67.56 06-16 A1C 206T359336570B 401-7180-533.42-10 67.56 06-14 A1C 3604570411199B 401-7180-533.42-10 134.07 ROHLINGER ENTERPRISES INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 96.18 I EQUIP MAINT & REPAIR SERV 401-7180-533,48-10 192.29 I EQUIP MAINT & REPAIR SERV 401-7180-533.48-10 85.72 SAFETY & SUPPLY COMPANY FIRST AID & SAFETY EQUIP. 401-7180-533.31-01 404.52 SECURITY SERVICE NW, INC COMMUNICATIONSWEDIA SERV 401-7180-533,41-50 600.00 SELLSTROMIRTC SHIPPING AND HANDLING 401-7180-533.48-10 307.69 STELLAR INDUSTRIAL SUPPLY INC PROSTt IETIC,HEARING AID ET 401-7180-533,35-01 280.45 SUNSET DO -IT BEST HARDWARE ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 129.41 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 10.53 AUTO & TRUCK MAINT. ITEMS 401-7180-533.34-02 11.41 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 25.95 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 47.38 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 5.65 FERTILIZERS & SOIL CONDTN 401-7180-533.34-02 21.94 FASTENERS, FASTENING REVS 401-7180-533.34-02 19.51 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 22,79 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 396.39 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 157.06 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35.01 23.37 SWAIN'S GENERAL STORE INC OFFICE SUPPLIES, GENERAL 401-7180-533.34-02 12.26 THURMAN SUPPLY ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 31.13 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 -14.88 ELECTRICAL CABLES & WIRES 401-7180-533.34-02 11.84 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 8.89 F-32 j I Page 21 '4374 , rr� Date: 7/14/2010 �► City of Port Angeles City Council Expenditure Report • °`Y,: �., �¢ From: 6/26/2010 To: 7/9/2010 Vendor Description Account Number Invoice Amount THURMAN SUPPLY ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 42.18 VERIZON WIRELESS 06-22 a/c 571136182-00002 401-7180-533.42-10 151.84 WAGNER-SMITH EQUIPMENT CO HARDWARE,AND ALLIED ITEMS 401-7180-533.34-02 286.27 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 93.55 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 1,824.98 ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 127.47 ZEE MEDICAL SERVICE CO FIRST AID & SAFETY EQUIP. 401-7180-533.31-01 50.70 Public Works -Electric Electric Operations Division Total: $22,813.65 Public Works -Electric Department Total: $23,806.32 Electric Utility Fund Fund Total: $57,652.83 ADT SECURITY SERVICES, INC SECURITY, FIRE,SAFETY SERV 402-7380-534.41-50 1,276.95 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 402-7380-534.42-10 1.08 BACKFLOW APPARATUS & VALVE CO PLUMBING EQUIP FIXT,SUPP 402-7380-534.31-20 72.46 CAPACITY PROVISIONING INC NETWORK SERVICES 402-7380-534.42-12 521.82 NETWORK SERVICES 402-7380-534.47-10 379.40 EDGE ANALYTICAL TESTI NG&CALIBRATION SERVI 402-7380-534.41-50 204.00 FEDERAL EXPRESS CORP Shipping Chgs pe 6-25 402-7380-534.42-10 41.14 L & L TOOL SPECIALTIES HAND TOOLS ,POW&NON POWER 402-7380-534.35-011 468.22 Duncan MILEAGE REIMBURSEMENT 402-7380-534.31-01 54.30 •Douglas NATIONAL SAFETY INC FIRST AID & SAFETY EQUIP. 402-7380-534.31-01 593.49 PORT ANGELES POWER EQUIPMENT LAWN MAINTENANCE EQUIP 402-7380-534.31-20 110.45 ELECTRICAL EQUIP & SUPPLY 402-7380-534.35-01 974.52 LAWN MAINTENANCE EQUIP 402-7380-534.35-01 416.22 LAWN MAINTENANCE EQUIP 402-7380-534.35-01 372.86 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 402-7380-534.31-01 66.89 PUBLIC WORKS BOARD(EFT) Sidewalk Water Mn Reconst 402-7380-591.71-10 53,571.43 Dwntwn Sdwk Wtrmn Recon 402-7380-591.71-10 13,306.50 Drinking Water Rsvr Cvrs 402-7380-591.71-10 62,642.40 Dwntwn Wtrmn Phase III 402-7380-591.71-10 126,687.31 Sidewalk Water Mn Reconst 402-7380-592.81-10 2,678.57 Dwntwn Sdwk Wtrmn Recon 402-7380-592.81-10 798.39 Drinking Water Rsvr Cvrs 402-7380-592.81-10 6,890.66 Dwntwn Wtrmn Phase III 402-7380-592.81-10 9,501.55 PUD #1 OF CLALLAM COUNTY Crown Z Water Rd 402-7380-534.47-10 17.30 QWEST 06-23 a/c 206T411255315B 402-7380-534.42-10 64.59 06-14 a/c 3604571270975B 402-7380-534.42-10 170.80 06-10 a/c 360Z100240955B 402-7380-534.42-10 744.01 06-14 A/C 3604571535571 B 402-7380-534.42-10 1.04 06-14 A/C 3604570968343B 402-7380-534.42-10 1.39 06-14 A/C 3604570831558B 402-7380-534.42-10 0.69 • 06-14 A/C 3604576684085B 402-7380-534.42-10 4.38 06-23 A/C 206T302306084B 402-7380-534.42-10 12.38 F-33 Page 22 Date: 7/14/2010 City of Port Angeles !!' City Council Expenditure Report `' •.t.��T From: 6/26/2010 To: 7/912010 O Vendor Description Account Number Invoice Amount QWEST 06-23 A/C 206T310164584B 402-7380-534.42-10 16.89 06-16 A/C 206T359336570B 402-7380-534.42-10 16.89 06-14 A/C 36045704111998 402-7380-534.42-10 33.52 06-05 a/c 3604524587479B 402-7380-534.42-10 124.99 SUNSET DO -IT BEST HARDWARE LAWN MAINTENANCE EQUIP 402-7380-534.31-20 56.57 PIPE FITTINGS 402-7380-534.31-20 15.20 FIRST AID & SAFETY EQUIP. 402-7380-534.31-20 9.19 BRUSHES (NOT CLASSIFIED) 402-7380-534.31-20 35.84 PIPE FITTINGS 402-7380-534.31-20 17.52 EQUIP MAINT & REPAIR SERV 402-7380-534.41-50 154.78 SWAIN'S GENERAL STORE INC SHOES AND BOOTS 402-7380-534.31-20 102.70 FOODS: PERISHABLE 402-7380-534.31-20 34.12 TWISS ANALYTICAL LABORATORIES TESTING&CALIBRATION SERVI 402-7380-534.41-50 215.00 TESTING&CALIBRATION SERVI 402-7380-534.41-50 215.00 TESTI NG&CALI B RATION SERVI 402-7380-534.41-50 22.50 TESTING&CALIBRATION SERVI 402-7380-534.41-50 210.00 Public Works -Water Water Division Total: $283,927.90 Public Works -Water Department Total: $283,927.90 Water Fund Fund Total: $283,927.90 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 403-7480-535.42-10 1.44 O CAPACITY PROVISIONING INC NETWORK SERVICES 403-7480-535.42-12 654.17 CED/CONSOLIDATED ELEC DIST INC HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 16.06 FEDERAL EXPRESS CORP Shipping Chgs pe 6-25 403-7480-535.42-10 96.84 NAUTILUS ENVIRONMENTAL TESTING&CALIBRATION SERVI 403-7480-535.41-50 600.00 PORT ANGELES POWER EQUIPMENT LAWN MAINTENANCE EQUIP 403-7480-535.31-20 260.12 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 403-7480-535.31-01 66.90 PUBLIC WORKS BOARD(EFT) Francis St Strm Swr Recon 403-7480-591.71-10 41,888.89 Sewer Trmt Plant Imprvmts 403-7480-591.71-10 133,126.94 Francis St Sewer Main 403-7480-591.71-10 31,052.63 Francis St Sewer Main 403-7480-591.71-10 19,736.84 CSO Project, Phase 1 403-7480-591.71-10 239,687.50 CSO Project, Phase 1 403-7480-591.71-10 105,263.16 Francis St Strm Swr Recon 403-7480-592.81-10 3,351.11 Sewer Trmt Plant Imprvmts 403-7480-592.81-10 2,662.54 Francis St Sewer Main 403-7480-592.81-10 2,639.47 Francis St Sewer Main 403-7480-592.81-10 1,776.32 CSO Project, Phase 1 403-7480-592.81-10 2,682.66 CSO Project, Phase 1 403-7480-592.81-10 10,000.00 PUD #1 OF CLALLAM COUNTY Service @ Masters Rd 403-7480-535.47-10 591.15 QWEST 06-16 a/c 206T29544912B 403-7480-535.42-10 54.40 06-14 A/C 3604571535571 B 403-7480-535.42-10 1.39 06-14 A/C 3604570968343B 403-7480-535.42-10 1.85 F-34 Page 23 6}!<:fT4 City of Port Angeles Date: 7/14/2010 City Council Expenditure Report • �`Y : '�, From: 612612010 To: 71912010 Vendor Description Account Number Invoice Amount OWEST 06-14 AIC 36045708315588 403-7480-535.42-10 0.93 CAPACITY PROVISIONING INC 06-14 A/C 36045766840856 403-7480-535.42-10 5.84 PROGRESSIVE BUSINESS PUBLCTNS 06-23 A/C 206T302306084B 403-7480-535.42-10 16.50 QWEST 06-23 A/C 206T310164584B 403-7480-535.42-10 22.52 06-16 A/C 206T359336570B 403-7480-535.42-10 22.52 06-14 A/C 36045704111998 403-7480-535.42-10 44.69 SNAP-ON TOOLS - CHUGGER DEANE HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 83.37 SWAIN'S GENERAL STORE INC CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 12.81 VERIZON WIRELESS 06-28 a/c 271138138-00006 403-7480-535.42-10 51.24 06-22 a/c 571136182-00004 403-7480-535.42-10 70.88 Public Works-WW/Stormw Wastewater Division Total. $596,543.68 RADIO PACIFIC INC (KONP) Public Works-WW/Stormwtr Department Total: $596,543.68 Page 24 Wastewater Fund Fund Total: $596,543.68 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 404-7580-537.42-10 0.72 CAPACITY PROVISIONING INC NETWORK SERVICES 404-7580-537.42-12 187.00 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 404-7580-537.31-01 66.90 QWEST 06-14 A/C 3604571535571 B 404-7580-537.42-10 0.70 06-14 A/C 3604570968343B 404-7580-537.42-10 0.93 06-14 A/C 3604570831558B 404-7580-537.42-10 0.46 06-14 A/C 3604576684085B 404-7580-537.42-10 2.92 06-23 A/C 206T302306084B 404-7580-537.42-10 8.25 06-23 A/C 206T310164584B 404-7580-537.42-10 11.26 06-16 A/C 206T359336570B 404-7580-537.42-10 11.26 06-14 A/C 3604570411199B 404-7580-537.42-10 22.34 RADIO PACIFIC INC (KONP) COMMUNICATIONS/MEDIA SERV 404-7580-537.44-10 500.00 SWAIN'S GENERAL STORE INC PAINTS, COATI NGS,WALLPAPER 404-7580-537.44-10 12.73 SCALES/WEIGHING APPARATUS 404-7580-537.44-10 32.38 WASTE CONNECTIONS, INC ENVIRONMENTAL&ECOLOGICAL 404-7580-537.41-51 46,589.02 Public Works -Solid Waste Solid Waste -Collections Division Total: $47,446.87 Public Works -Solid Waste Department Total: $47,446.87 Solid Waste -Collections Fund Total: $47,446.87 ADVANCED TRAVEL 2Good2Toss Mtg-Frelich 405-7538-537.43-10 42.77 Solid Waste Laws -McCabe 405-7538-537.43-10 70.15 ANGELES MILLWORK & LUMBER CO EPDXY BASED FORMULAS 405-7538-537.31-20 68.28 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 405-7538-537.42-10 0.72 BLAKE TILE & STONE, INC ROAD/HWY MAT NONASPHALTIC 405-7538-537.31-20 9.76 ROAD/HWY MAT NONASPHALTIC 405-7538-537.31-20 9.76 CAPACITY PROVISIONING INC NETWORK SERVICES 405-7538-537.42-12 187.00 HANSON PIPE & PRECAST, INC CONCRETE & METAL CULVERTS 405-7538-537.31-20 5,712.68 • QWEST 06-14 A/C 3604571535571 B 405-7538-537.42-10 0.70 06-14 A/C 3604570968343B 405-7538-537.42-10 0.93 06-14 A/C 36045708315588 405-7538-537.42-10 0.46 F-35 Page 24 atL Date: 7/14/2010 City of Port Angeles �, City Council Expenditure Report t `}'� ..ts� From: 6/26/2010 To: 7/9/2010 O Vendor Description Account Number Invoice Amount QWEST 06-14 A/C 36045766840858 405-7538-537.42-10 2.92 CLALLAM CNTY EMS 06-23 A/C 206T302306084B 405-7538-537.42-10 8.25 QWEST 06-23 A/C 206T31016458413 405-7538-537.42-10 11.26 06-16 A/C 206T35933657013 405-7538-537.42-10 11.26 06-14 A/C 3604570411199B 405-7538-537.42-10 22.34 RADIO PACIFIC INC (KONP) COMMUNICATIONS/MEDIA SERV 405-7538-537.44-10 500.00 SUNSET DO -IT BEST HARDWARE FASTENERS, FASTENING DEVS 405-7538-537.31-01 78.46 WASTE CONNECTIONS, INC BLDG CONSTRUC. SERVICES- 405-7538-537.41-51 233,031.70 ENVIRONMENTAL&ECOLOGICAL 405-7538-537.41-51 1,213.04 ENVIRONMENTAL&ECOLOGICAL 405-7538-537.45-30 5,367.27 VERIZON WIRELESS ENVIRONMENTAL&ECOLOGICAL 405-7538-591.71-10 23,384.73 Fire Department ENVIRONMENTAL&ECOLOGICAL 405-7538-592.81-10 39,394.00 Public Works -Solid Waste SW - Transfer Station Division Total: $309,128.44 EDGE ANALYTICAL TESTI NG&CALI B RATION SERVI 405-7585-537.41-50 247.86 PORT ANGELES POWER EQUIPMENT LAWN MAINTENANCE EQUIP 405-7585-537.31-20 39.71 Public Works -Solid Waste Solid Waste -Landfill Division Total: $287.57 Public Works -Solid Waste Department Total: $309,416.01 Solid Waste-LF/Trf Stn Fund Total: $309,416.01 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 406-7412-538.42-10 0.36 QWEST 06-14 A/C 3604571535571B 406-7412-538.42-10 0.35 06-14 A/C 3604570968343B 406-7412-538.42-10 0.46 06-14 A/C 3604570831558B 406-7412-538.42-10 0.23 06-14 A/C 3604576684085B 406-7412-538.42-10 1.46 06-23 A/C 206T302306084B 406-7412-538.42-10 4.13 06-23 A/C 206T310164584B 406-7412-538.42-10 5.63 06-16 A/C 206T35933657013 406-7412-538.42-10 5.63 06-14 A/C 3604570411199B 406-7412-538.42-10 11.16 Public Works-WW/Stormw Stormwater Division Total: $29.41 Public Works-WW/Stormwtr Department Total: $29.41 Page 25 Stormwater Fund Fund Total: $29.41 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 409-6025-526.42-10 2.16 CLALLAM CNTY EMS Medic 1 Advisory 409-6025-526.41-50 600.00 QWEST 06-14 A/C 3604571535571 B 409-6025-526.42-10 2.09 06-14 A/C 3604570968343B 409-6025-526.42-10 2.79 06-14 A/C 36045708315588 409-6025-526.42-10 1.39 06-14 A/C 36045766840858 409-6025-526.42-10 8.76 06-23 A/C 206T302306084B 409-6025-526.42-10 24.76 06-23 A/C 206T310164584B 409-6025-526.42-10 33.78 06-16 A/C 206T359336570B 409-6025-526.42-10 33.78 06-14 A/C 36045704111998 409-6025-526.42-10 67.03 VERIZON WIRELESS 06-15 a/c 264395724-00001 409-6025-526.42-10 85.50 Fire Department Medic I Division Total: $862.04 F-36 Page 25 cor Date: 7/14/2010 City of Port Angeles IF loft .� City Council Expenditure Report • r`'''�2fi'�'� From: 612612010 To: 719/2010 Vendor Description Account Number Invoice Amount Fire Department Department Total. $862.04 Medic I Utility Fund Total: $862.04 FEDERAL EXPRESS CORP Shipping Chgs pe 6-25 421-7121-533.42-10 7.00 Public Works -Electric Conservation Division Total: $7.00 Public Works -Electric Department Total: $7.00 Conservation Fund Total: $7.00 FOSTER PEPPER PLLC ELWHA DAM MITIGATION 452-7388-594.41-50 9,332.00 RADIOSHACK CAMERA 452-7388-594.65-10 138.72 Public Works -Water Water Projects Division Total: $9,470.72 Public Works -Water Department Total. $9,470.72 Water Utility C/P Fund Total. $9,470.72 ADVANCED TRAVEL Rayonier/CSO Attny-Bloor 453-7488-594.43-10 82.95 Rayonier/CSO Aprsl-Bloor 453-7488-594.43-10 16.50 BROWN AND CALDWELL CSO PLAN UPDATE 453-7488-594.41-50 68,015.37 Public Works-WW/Stormtw Wastewater Projects Division Total: $68,114.82 Public Works-WW/Stormwir Department Total: $68,114.82 WasteWater Utility CIP Fund Total. $68,114.82 • ARI HETRA BAXTER AUTO PARTS #15 AUTO SHOP EQUIPMENT & SUP AUTO & TRUCK MAINT. ITEMS 501-0000-237.00-00 501-0000-141.40-00 -10.98 12.77 FREEDOM FIRE EQUIPMENT REPLACEMENT BODY TRIM 501-0000-237.00-00 -15.12 HUGHES FIRE EQUIPMENT INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 461.94 NAPA AUTO PARTS AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 18.55 AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 20.16 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 103.52 Hitch Pin Return 501-0000-141.40-00 -13.51 SOLID WASTE SYSTEMS, INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 245.50 Division Total: $822.83 Department Total: $822.83 ANGELES MILLWORK & LUMBER CO LUMBER& RELATED PRODUCTS 501-7630-548.31-20 71.11 ARAMARK LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 32.51 ARI HETRA AUTO SHOP EQUIPMENT & SUP 501-7630-548.34-02 141.67 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 501-7630-548.42-10 1.26 BAXTER AUTO PARTS #15 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 3.25 CAPACITY PROVISIONING INC NETWORK SERVICES 501-7630-548.42-12 41.00 CONSTRUCTION PARTS ROAD/HWY EQUIP EARTH,GRD 501-7630-548.34-02 292.29 EVERGREEN COLLISION CENTER EXTERNAL LABOR SERVICES 501-7630-548.48-10 185.36 FEDERAL EXPRESS CORP Shipping Chgs pe 6-25 501-7630-548.42-10 7.28 FREEDOM FIRE EQUIPMENT REPLACEMENT BODY TRIM 501-7630-548.34-02 195.12 H & R PARTS & EQUIPMENT INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 73.77 • AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 147.53 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 839.16 F-37 Page 26 �,a� ":`rA ' •?� Date: 7/14/2010 City of Port Angeles City Council Expenditure Report �'' ••�•�^ From: 6/26/2010 To: 7/9/2010 O Vendor Description Account Number Invoice Amount HEARTLINE AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 68.24 AT&T BUSINESS SERVICE AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 93.17 MATCO TOOLS AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 250.51 ECYCLENW AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 97.51 MURRAY MOTORS INC EXTERNAL LABOR SERVICES 501-7630-548.48-10 51.34 N C MACHINERY CO AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 73.66 NAPA AUTO PARTS AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 220.88 O'REILLY AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 8.01 PACIFIC OFFICE EQUIPMENT INC ENVELOPES, PLAIN, PRINTED 501-7630-548.31-01 6.07 COMPUTER ACCESSORIES&SUPF 501-7630-548.31-01 250.79 PORT ANGELES FORD LINCOLN EXTERNAL LABOR SERVICES 501-7630-548.48-10 576.37 PORT ANGELES TIRE FACTORY EXTERNAL LABOR SERVICES 501-7630-548.48-10 296.58 PROGRESSIVE BUSINESS PUBLCTNS LIBRARY SERVICES(EXCL 908 501-7630-548.49-01 66.90 QWEST 06-14 A/C 3604571535571B 501-7630-548.42-10 1.22 06-14 A/C 3604570968343B 501-7630-548.42-10 1.63 06-14 A/C 3604570831558B 501-7630-548.42-10 0.81 06-14 A/C 36045766840856 501-7630-548.42-10 5.11 06-23 A/C 206T302306084B 501-7630-548.42-10 14.44 06-23 A/C 206T310164584B 501-7630-548.42-10 19.70 06-16 A/C 206T359336570B 501-7630-548.42-10 19.70 06-14 A/C 3604570411199B 501-7630-548.42-10 39.10 RUDDELL AUTO MALL AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 196.68 EXTERNAL LABOR SERVICES 501-7630-548.48-10 40.92 SIX ROBBLEES' INC AUTO SHOP EQUIPMENT & SUP 501-7630-548.34-02 38.79 SUNSET DO -IT BEST HARDWARE AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 2.73 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 4.67 RENTAL/LEASE EQUIPMENT 501-7630-548.34-02 35.23 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 174.83 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 41.31 SWAIN'S GENERAL STORE INC AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 6.36 WESTERN SYSTEMS & FABRICATION AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 459.07 Public Works -Equip Svcs Equipment Services Division Total: $5,193.64 Public Works -Equip Svcs Department Total: $5,193.64 is Page 27 Equipment Services Fund Total: $6,016.47 ADVANCED TRAVEL SUG Conf-Harper 502-2081-518.43-10 347.54 AT&T BUSINESS SERVICE 06-13 A/C 0172134468001 502-2081-518.42-10 1.62 CAPACITY PROVISIONING INC NETWORK SERVICES 502-2081-518.42-12 500.00 ECYCLENW EQUIPMENT DISPOSAL 502-2081-518.47-10 366.30 INSIGHT PUBLIC SECTOR COMPUTERS,DP & WORD PROC. 502-2081-518.31-60 140.91 MICROSOFT CORPORATION COMPUTER HARDWARE&PERIPHI 502-2081-518.31-60 MS EXCHANGE STD ONLINE HO 502-2081-518.31-60 217.84 770.00 MS EXCHANGE DESKLESS SVC 502-2081-518.31-60 114.00 F-38 Page 27 az cfr - Date: 71141201 a City of Port Angeles City Council Expenditure Report From: 612612010 To: 7/9/2010 Vendor (Description Account Number Invoice Amount NOVELL INC DATA PROC SERV &SOFTWARE 502-2081-518.41-50 4,000.00 DATA PROC SERV &SOFTWARE 502-2081-518.41-50 2,351.87 QWEST 06-14 AIC 36045715355718 502-2081-518.42-10 1.57 06-14 AIC 3604570968343B 502-2081-518.42-10 2.08 06-14 AIC 3604570831558B 502-2081-518.42-10 1.04 06-14 A1C 3604576684085B 502-2081-518.42-10 6.57 06-23 AIC 206T302306084B 502-2081-518.42-10 18.57 06-23 AIC 206T310164584B 502-2081-518.42-10 25.33 06-16 AIC 205T359336570B 502-2081-518.42-10 25.33 06-14 AIC 36045704111998 502-2081-518.42-10 50.28 SUNGA'RD PUBLIC SECTOR SUNGARD UNLIMITED WEB CLA 502-2081-518.43-15 4,800,00 Finance Department information Technologies Division Total: $13,748.85 Finance Department Department Total: $13,748.85 Information Technology Fund Total: $13,748.85 AWC EMPLOYEE BENEFITS TRUST MedlDen/Vis Premiums 503-1631-517.46-30 217,726.92 LT Disability 503-1631-517.46-31 4,771.53 Life Insurance 503-1631-517.46-32 1,902.14 L1 MedlVis Premiums 503-1631-517.46-34 8,836.33 CAMPORINI, RICHARD Reimb Medicare -.lune 503-1631-517.46-35 96,50 CLELAND, MICHAEL Reimb Medicare -June 503-1631-517.4E-35 96.50 Disability Board -.lune 503-1631-517.46-35 15.00 GLENN, LARRY Reimb Medicare -June 503-1631-517.46-35 96.50 Disability Board -June 503-1631-517.46-35 190.00 GOODRICH, RUTH L Reimb Medicare 503-1631-517.46-35 571.50 Disability Board -June 503-1631-517.46-35 193.59 GROOMS, MICHAEL Reimb Medicare 503-1631-517.46-35 96.50 JOHNSON, DONALD G Reimb Medicare 503-1631-517.46-35 96.50 Disability Board -June 503-1631-517.46-35 137.18 JOHNSON, HARRY Reimb Medicare 503-1631-517.4E-35 96.50 Disability Board -June 503-1631-517.46-35 11.08 JORISSEN, ROBERT R Reimb Medicare 503-1631-517.46-35 96.50 LIND, DARWIN PETER Reimb Medicare 503-1631-517.46-35 96,50 LINDLEY, JAMES K Reimb Medicare 503-1631-517.46-35 96.50 Disability Board -June 503-1631-517.4E-35 30.82 LOUCKS, JASPER Reimb Medicare 503-1631-517.46-35 207.00 Disability Board -June 503-1631-517.46-35 205.55 MIESEL JR, PHILIP C Reimb Medicare 503-1631-517.46-35 92.40 MEDICAL REIMBURSEMENT 503-1631-517.46-30 104.23 NW ADMIN TRANSFER ACCT SINSfWT 503-1631-517.46-33 60,382.30 THOMPSON, BRUCE RETIREES Reimb Medicare 503-1631-517.46-34 503-1631-517.46-35 10,878.25 96.50 WARD, DENNIS H Reimb Medicare 503-1631-517.46-35 96.50 F-39 Page 28 �acr ¢` Date 7/14/2010 City of Part Angeles City Council Expenditure Report `' �k " From: 6/26/2010 To: 71912010 Vendor Description Account Number Invoice Amount Self Insurance Other Insurance Programs Division Total: $387,317.32 FRANK GATES SERVICES CO TPA FEE FOR 7/1110-913011 503-1661-517.41-40 4,113.30 Self Insurance Workers Compensation Division Total: $4,113.30 RED LION HOTEL -PORT ANGELES LODGING FOR WCIA INVESTIG 503-1671-517,41-50 108.19 Self Insurance Comp Liability Division Total.: $188.19 Self Insurance Department Total: $311,538.81 Self-insurance Fund Fund Total: $311,538.81 AWC EMPLOYEE BENEFITS TRUST Retiree Premiums 602-6221-517.46-35 5,037.06 Disability Board -June 602-6221-517.46-35 84.00 BRAUN, GARY Reimb Medicare 642-6221-517.46-35 96.50 Disability Board -June 602-6221-517.46-35 99.52 CAMPBELL, MALCOLM D Reimb Medicare 602-6221-517.46-35 96.50 Disability Board -June 602-6221-517.46-35 4,646.42 Disability Board -June 602-6221-517.46-35 87.41 DOYLE, JERRY L Reimb Medicare 602-6221-517.46-35 96.50 RYAN, ED Reimb Medicare 602-6221-517.46-35 96.50 Fireman's Pension Fireman's Pension Division Total: $18,340.41 Fireman's Pension Department Total: $18,348.41 AT&T BUSINESS SERVICE I Fireman's Pension 06-13 AIC 0172134468001 Fund Total: 652-8630-575.42-10 $18,348.41 0.54 BIENVENU. MICAJAH Honorarium 652-8630-575.41-50 400.00 BIRD, JUDITH Honorarium 652-8630-575.41-50 400.00 BLAKE TILE & STONE, INC Sand 652-8630-575.31-01 22.70 CAPACITY PROVISIONING INC NETWORK SERVICES 652-8630-575.42-12 172.00 CAUTRELL, DAN Honorarium 652-8630-575.41-50 400.00 DE PIRRO, BARBARA Honorarium 652-8630-575.41-50 400.00 DIGITAL IMAGING SOLUTIONS INC JUNE COPY COSTS 652-8630-575.45-31 18.10 j HACKENBERG, KAREN Honorarium 652-8630-575.41-50 400.00 HAMMER, DEAN Honorarium 652-8630-575.41-50 400.00 LAMSON, GLO Honorarium 652-8630-575.41-50 400.00 LAPP, .LAMES Honorarium 652-8630-575.41-50 400.00 LAW, CAROLYN Honorarium 652-8630-575.41-50 400A0 LINDELL, JULIE Honorarium 652-8630-575.41-50 400.00 MCDONALD, MARGIE Honorarium 552-8630-575.41-50 400.00 NECHAK, DAVID Honorarium 652-8630-575.41-50 400.00 PINDELL, DEANNA Honorarium 652-8630-575.41-50 400.00 QWEST 06-14 a/c 3604573532775B 652-8630-575,42-10 40.87 06-23 a/c 206T418577331 B 652-8630-575.42-10 57.46 06-14 A/C 36045715355718 652-8630-575.42-10 0.52 06-14 A1C 3604570968343B 652-8630-575.42-10 0.69 06-14 A1C 36045708315588 652-8630-575.42-10 0.35 06-14 AIC 36045766840856 652-8630-575.42-10 2.19 F-40 Page 29 sxa , Date: 7114!2010 City of Fort Angeles City Council Expenditure Report From: 6/2612010 To: 71912010 Vendor Description Account Number Invoice Amount ❑WEST 06-23 AIC 206T302306084B 652-8634-575.42-10 6.19 06-23 AIC 206T310164584B 652-8630-575.42-10 8.44 06-16 AIC 206T359336570B 652-8630-575.42-10 8.44 06-14 AIC 360457041 1 1 99B 652-8630-575.42-10 16.76 WIANCKO-CHASMAN, ANNA Honorarium 652-8630-575.41-50 400.40 7AHEDI, KURDS Honorarium 652-8630-575.41-50 400.00 Esther WebsterlFine Arts Esther WebsterlFine Arts Division Total: $6,355.25 Esther WebsterlFine Arts Department Total• $6,355.25 Esther Webster Fund Fund Total: $6,355.25 AFSCME LOCAL 1619 PIR Deductions pe 6-27 924-0000-231.54-40 92.00 PIR Deductions pe 6-27 920-0000-231.54-40 184.00 DIMARTINOIWSCFF DISABILITY PIR Deductions pe 6-27 920-0000-231.53-40 1,281.97 FIREFIGHTER'S LOCAL 656 PIR Deductions pe 6-27 920-0000-231,54-30 1,701.00 GUARANTEED EDUCATION TUITION PIR Deductions pe 6-27 920-0000-231.56-95 527.00 IBEW LOCAL 997 PIR Deductions pe 6-27 920-0000-231.54-20 947.39 LEOFF PIR Deductions pe 5-27 920-0000-231.51-21 23,350.43 OFFICE OF SUPPORT ENFORCEMENT PIR Deductions pe 6-27 9200000-231.56-20 1,042.50 PIR Deductions pe 6-27 920-0000-231.56-20 169.85 PERS PIR Deductions pe 5-27 920-0000-231.51-10 1,670.68 PIR Deductions pe 5-27 920-0000-231.51-11 8,718.92 PIR Deductions pe 5-27 920-0000-231.51-12 33,400.34 POLICE ASSOCIATION PIR Deductions pe 6-27 920-0000-231.55-10 257.04 UNITED WAY [PAYROLL] PIR Deductions pe 6-27 920-0000-231,56-10 483.27 WSCCCE AFSCME AFL-CIO PIR Deductions pe 6-27 920-0000-231.54-40 4,328.47 Division Total: $78,154.78 Department Total: $78,154.78 Payroll Clearing Fund Total: $78,154.78 Totals for check period From: 6/26/2010 To. 7/9/2010 $2,146,235.61 • F-41 Page 30 0T ; , GELES WASH ING TO N, CITY COUNCIL MEMO DATE: July 20, 2010. To: CITY COUNCIL FROM: Glenn A. Cutler, P.E., Director of Public Works & Utilities SUBJECT: Electric Utility 2010.Resource Plan Summary: The City's electric utility must comply with an unfunded Washington state mandate to develop a Resource :Plan. A component of the enabling legislation is that consumer participation in the development of the :Resource Plan is encouraged. Further, the governing body of a consumer - owned utility must approve the 2010 and any future Resource Plans after it has provided public notice and hearing. Recommendation: Set a public hearing for August 3, 2010.. Background/Analysis: The electric utility is required by RC W 19.280.030 to update its Resource Plan (Plan) and submit it to the state Department of Commerce by September 1, 2010. The first state mandated Plan was completed in 2008. Electric utilities with more than 25,000 customers are required to prepare an Integrated Resource Plan, which is a much more extensive effort. ! The principal desired outcome of the Plan is to ensure electric utilities have adequate resources to meet projected loads, especially as BPA moves to a tiered rate structure from its current melded rate schedule. While the Plan is not a legally binding document, at a minimum it must provide a ! description of current power loads and resources, as well as the estimated power loads and resources i for 2015 and 2020 time periods. The state -required Plan must be updated every two years and may be available to the public from the City's website. In its projection of the resources estimated to serve future loads, the Plan must explain why those resources were chosen, and if those chosen resources were not conservation, efficiency or renewable energy resources, an explanation must be provided on why such a decision was made. Staff is currently preparing an update to the 2008 Plan based on typical growth rates and the City's current. and anticipated future mix of resources. The schedule for an on-time delivery of the 2010 Plan is summarized on the following page. On July 13, 2010, the Utility Advisory Committee forwarded a favorable recommendation to City Council to proceed with a public hearing on the Plan. F-42 NXCOUNCi.L1F1NAL1 lectric Utility 2010 Resource Plan.doc • • • Electric Utiiity 20 10 Resource Plan July 20, 2010 Page 2 F-43 Electric Utility 2010 Resource Plan Schedule Dates Action Items July 20, 2010 Council sets public hearing for August 3, 2010 August 3, 2010. Plan presented to Council; public hearing opened. August 1.0, 2010. Utility Advisory Committee updated on Plan. August 1.7, 201.0 Council continues public hearing and approves resolution August 27, 2010 Final ;Plan and approved resolution submitted to Commerce F-43 DATE: To: FROM: SUBJECT: July 20, 2010. CITY COUNCIL NGELES Glenn A. Cutler, P.E.. Director of Public Works && Utilities Bonneville Power Administration Cooperative Agreement No. 48475 and Consultant Agreement Amendment No. 2 for Residential Demand Response Program Summary: A proposal was submitted in April to the Bonneville Power Administration for a residential demand response pilot project. A Cooperative Agreement in an amount not to exceed $367,000 has been offered to the City. An amendment to the consulting services agreement with EES Consulting is also proposed to provide services in support of the pilot project. Recommendation: Authorize the City Manager to: I) sign Cooperative Agreement No. 48475 with the Bonneville Power Administration for a $367,000 award for the City's Advanced Metering Infrastructure Residential Demand Response Pilot ,Project, 2) sign Amendment No. 2 to the Consulting Services Agreement with EES Consulting for an amount not to exceed $80,560, and 3) make minor modifications to the Cooperative Agreement and Consulting Services Agreement, if necessary. Background/Analysis: Demand response (DR) is a practice that cycles or shuts down customer equipment during peak, electric utility demand events to reduce Bonneville Power Administration (BPA) wholesale demand charges. At its simplest, DR uses a control device to briefly curtail major appliances or space conditioning units. Peak demand is measured as the maximum rate of energy consumed during one hour each month. Although. DR is not a new practice for electric utilities across the nation, it has not been used by most. electric utilities buying power from the BPA due to low peak demand rates. However, beginning October 1, 2011,.the primary opportunity for the City to reduce its wholesale power costs under BPA's new wholesale Tiered Rate Methodology (TRM) will be to manage its peak energy demand. While there are many unresolved details, peak demand management may be able to reduce the City's TRM. wholesale power costs by as much as $3 million annually ($1.6 million distribution system; $1.4 million industrial transmission system). Earlier this year, the Utility Advisory Committee supported, and City Council approved, the submission of a proposal to the BPA to participate in its Funding Opportunity Announcement (FDA) No. 1530 for Residential Demand ;Response Pilot. Projects. The City submitted a proposal, and BPA. issued a formal notification of its intent to award a Cooperative Agreement to the City, with the BPA cost -share not to exceed $367,000. N:1000UNCIL 1FINALWA Cooperative Agreement and Consultant Agreement Amendment for Residential Demand Res Se- 44 Program.doc r • LJ • BPA Residential Demand Response Cooperative Agreement • July 20, 2010 Page 2 EES Consulting, Inc. (EESC) will assist the City with the Residential Demand Response Pilot Project (Project) by performing the economic evaluation of the cost-effectiveness of DR and other technical project -related support services. At the conclusion of its evaluation, EESC will provide the City and BPA with a final report describing the data input, the economic analysis, and resulting cost- effectiveness of the residential demand response strategies evaluated. This final report will provide the information required to determine if a full-scale deployment of residential DR is warranted. The EESC contractual services will not exceed a total of $80,560, with a 100% cost share to be provided by the BPA. The economic and technical services are important to BPA because it plans to use the final report as part of its decision making for future programs. In addition to $80,560 for consulting services, BPA will provide $179,440 in matching funds for DR equipment and $107,000 in customer incentives, for a total BPA award of $367,000. The City's Residential DR proposal, the BPA Cooperative Agreement No. 48474, and additional information about BPA's DR programs are available on the City's File Transfer Protocol website at http://olypen.com/copa under the "AMI System RFP" folder. On July 13, 2010, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize the City Manager to: 1) sign Cooperative Agreement No. 48475 with the Bonneville Power Administration for a $367,000 award for the City's Advanced Metering Infrastructure Residential Demand Response Pilot Project, 2) sign Amendment No. 2 to the Consulting . Services Agreement with EES Consulting for an amount not to exceed $80,560, and 3) make minor modifications to the Cooperative Agreement and Consulting Services Agreement, if necessary. • F -45 NGELES DATE: July 20, 2010 TO: CITY COUNCIL FROM: Glenn A. Cutler, P.E., Director of Public Works & Utilities SUBJECT: Consultant Agreement Amendment No. 3 for Commercial and Industrial Demand Response Grant Program Summary: The Bonneville Power Administration recently issued a request for proposals for a Commercial and Industrial Demand Response Pilot Project. An added scope of work, schedule; and pricing for consulting services with EES Consulting has been negotiated to prepare a proposal. Recommendation: Authorize the City Manager to 1) sign Amendment No. 3 to the consulting services agreement with EES Consulting in an amount not to exceed $12,300, and 2) make minor modifications to the agreement, if necessary. Background/Analysis: While the City has been successful in obtaining a Bonneville Power Administration (BPA) award for a residential demand response (DR) pilot project, additional DR resources will be needed from commercial and industrial (C & I) customers to minimize future increased demand charges under the Tiered Rate Methodology (TPM). BPA recently announced the availability of a C & I pilot project and staff has participated in a brownbag session and a stakeholder meeting during June to learn more about the grant opportunity. BPA retained Global Energy Partners as its consultant to work with utilities that will be submitting proposals. The C & 1 pilot project is an opportunity to help the City and local businesses to reduce their electrical charges and prepare for retail tiered rates that will begin in January of 2012. Subject to the availability of BPA funds, anticipated initial efforts may include the City, primary electric customers, and the industrial transmission customer in the proposal. If possible, the Commercial Demand Response Study that's included in the 2010-2016 Capital Facilities Plan will also be included in the proposal. Subsequent efforts could include all commercial customers. Because of time constraints and the complexity and interrelationships of the Advanced Metering Infrastructure System and three related projects (residential DR project, retail TRM study, and communications plan), staff recommends that consulting services be obtained to prepare the City's C & I DR proposal to the BPA prior to the September 30, 2010 due date. EES Consulting, Inc. (EESC) has worked with staff on several other successful projects such as the Residential DR proposal, Conservation Potential Assessment, a regional DR evaluation for the Western Public Agencies Group, as well as the City's Advanced Metering Infrastructure System Request for Proposals. EESC is available and staff recommends that their services be retained for this effort. N:\CCOUNCIL\FINAL\Consultant Agreement Amendment No. 3 for Commercial & Industrial Demand Response Grant F —46 Program.doc O O • 1-1 Consultant Agreement Amendment. No. 3 for C & I Demand. Response Grant Program. July 20, 20'1 p Page 2 Additional information about the BPA C & I DR pilot project is available on the City's File Transfer Protocol website at http://olypen.com/copa under the "AMI System RFP" folder. Staff and. EESC have negotiated the scope of work, schedule, and a $12,300 fee. Funding for the proposed consulting services will be paid from the electric utility capital improvement project budget. The proposed scope of work for consulting services is summarized in the table below: Tasks Budget 1. Meetings and coordination with Global. Energy Partners $4,1.00 2. Pre are grant application 8.200 Total $12,300 On July 13, 2010, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize the City Manager to I ) sign Amendment No. 3 to the consulting services agreement with EES Consulting in an amount not to exceed $1.2,300, and 2) make minor modifications to the agreement, if necessary. F -47 DATE: July 20, 2010 To: CITY COUNCIL FROM: Glenn A. Cutler, P.E., Director of Public Works & Utilities SUBJECT: Energy Northwest Interlocal Agreement Modification. No. 2 for the Morse Creek Hydroelectric Project Summary: After obtaining competitive bids to upgrade the Supervisory Control and Data Acquisition (SCADA) System for the Morse Creek Hydroelectric Project it is apparent that an increase in the project cost is warranted. Recommendation: Authorize the City Manager to sign Modification No. 2 to the )Interlocal Agreement with Energy Northwest in an amount not to exceed $10,435, and make minor modifications to the agreement, if necessary. • Background/Analysis: On July 15, 2008, City Council approved a resolution to become a member of Energy Northwest. Energy Northwest has the authority to acquire, construct, operate and own plants, systems, and other facilities for the generation and/or transmission of electric energy and power. 40 On December 15, 2009, City Council approved an Interlocal. Agreement with Energy Northwest to upgrade the Supervisory Control and Data. Acquisition (SCADA) System for the Morse Creek. Hydroelectric project (CFP Project CL 1.3-2009 attached) for $42,750. On January 1.9, 2010, City Council approved amendment No. 1 to the Interlocal Agreement to include Spill Prevention Containment and Control plans and a Stormwater Pollution Prevention plan for $1.0,945, which were unfunded mandates required by the recent. Federal. Energy Regulatory Commission license and. Department of Ecology 401 Water Quality Certification. The upgrades include an interface to the existing electric distribution SCADA System, incorporation of existing control points, additional temperature and water flow sensors, installation of a programmable logic controller and communications to allow remote operation. The upgrade will also bring the Morse Creek Hydroelectric project into compliance with its license and certification. Staff estimates that the upgrades will increase generation, realizing an annual benefit of 88 additional days of generation, avoiding $14,000 of wholesale power purchases. Completion of the upgrades is planned for this September during the annual shutdown. After obtaining competitive bids to upgrade the SCADA System, it is apparent that an increase in the project cost is warranted, which is due to increased subcontractor cost. There are several reasons for the increased costs. Between the time that initial cost estimates were obtained and the Interiocal Agreement was executed, about six months of time elapsed. There was also a total of 80 control points N:1CC0UNC1L1F1NALIEnergy North,,vest Interlocal Agreement Modification 2 for Morse Creek.dou F —48 • Energy Northwest Interlocal Agreement Modification No. 2 for the Morse geek Hydroelectric Project JulyPage 24, 2414 Page 2 included in the final design to comply with the new unfunded mandates and only 24 were included in. the initial cost estimates. Energy Northwest solicited competitive bids and the low bidder was $18,370 above the initial cost estimate. A construction contingency for unforeseen costs is also recommended, which would only be used if necessary and was not included in the current agreement. Energy Northwest has generously offered to waive its $12,750 engineering and project management fee to demonstrate its willingness to support the City's project. A summary of the current and proposed costs with and without Energy Northwest's engineering and project management fees is presented below. Current. Agreement. Proposed Agreement -Engineerin andQroject management fee _ $12,750 Waived $12,750 SCADA sub-contractort cos - T _ 30,000 --48374 — --48,370 Construction contingency - 4,81.5 4,81.5 $42,750 $53,1.85 $65,935 Proposed Increase - $10.435 $23,1.85 Staff believes that the increased sub -contractor costs are justified and reasonable and would not expect a different outcome if the project had been completed otherwise. The 2010 budget for this project is $75,000. Sufficient funds for additional costs are available in the Morse Creek Contingency & Replacement reserve. On July 1.3, 2010, the Utility Advisory Committee forwarded a favorable recommendation to City Council to authorize the City Manager to sign Modification No. 2 to the Interlocal Agreement with Energy Northwest in an amount not to exceed $1.0,435, and make minor modifications to the agreement, if necessary. i e N- GIELES DATE: July 20, 2010 To: CITY COUNCIL FROM: Glenn A. Cutler, P. E., Director of Public Works & Utilities SUBJECT: Consultant Selection for Stormwater Engineering Services Summary: The City desires to implement stormwater system improvements to resolve winter flooding in the west side neighborhood between F and I Streets. In March, the City received seven responses to a Request for Proposal for design services. From these proposals and subsequent interviews, PACE Engineers, Inc., was selected as the best qualified firm to provide Stormwater- related engineering services. The proposed contract is for the first phase of design for the 4"' St. Stormwater Improvements. Recommendation: Approve and authorize the City Manager to sign an Agreement with PACE Engineers, Inc., for professional services in an amount not to exceed $1.65,100 and to make minor modifications to the Agreement if necessary. Background/Analysis: One of the goals of the Stormwater Utility, founded in 2003, was to address systemic stormwater problems within the City. The 0h Street. Stormwater Improvements project is the first major project undertaken since then to address flooding issues. Winter flooding occurs regularly in the intersection of Oh and H Streets as well as along 0 Street between. F and .I. Streets. An analysis of the problem by City engineering staff indicated that a number of the storm drain pipes in the neighborhood are undersized. In the fall of 2009, the City constructed a stormwater bypass pipe, and installed a backflow prevention valve in front of a residence at 151.2 West 4`h Street to temporarily relieve localized flooding. In March of 2010,.the City received seven responses to a Request for Proposal for design services. From these proposals and subsequent interviews, PACE Engineers, Inc., was selected as the hest qualified firm to provide stormwater-related engineering services. City staff and PACE have negotiated an Agreement for Professional Services. The Agreement consists of the City's standard. consultant agreement with attachments defining a scope of work, schedule, and budget for each task. Because the City intends to explore more than one strategy to resolve: the flooding issues in this neighborhood, and each strategy will result in very different design and construction costs, the proposed agreement with PACE includes only the first phase of design, which includes site explorations and an alternatives analysis. i — 50 N.\CCOUNCSi,:\F1NiAI.\StormAdter Engineering Services -doe • • July 20, 2010 City Council He: Stonnwater Engineering Services Page 2 of 3 After the preferred alternative and design strategy are selected, staff will return to the City Council to recommend a contract amendment to complete the Phase 11 design and develop final contract documents. If. for some reason, the relationship with PACE is unsatisfactory, the City reserves the right to select a different design consultant to complete the project. PACE Engineers, Inc., has estimated the design fee for Phase I to be approximately $1.1.0,000. The current planning -level estimate for design and construction of this project is $950,000 to $1,400,000. The scope of work for the Phase I design is summarized in the table below: The alternatives analysis for this project will include the following: 1. An evaluation of the feasibility of implementing low impact development (LID) stormwater facilities such as rain gardens, 2. Potential deep infiltration wells, and. 3. The more traditional approach of increasing the size of the underground pipe systems. If the LID alternative is feasible for this project, City staff plans to submit a grant application to the Department of Ecology for the LID elements of the project. Increased pipe size would likely require construction of a new stormwater outfall to the lagoon at the base of Ediz Hook. If rain gardens or deep infiltration wells are feasible, these alternatives would be brought to the neighborhood residents for their input. A map illustrating the study area is attached for more information. Sufficient funds for Phase I. design are included in the current 2010 Stormwater Utility Budget. Additional funds for Phase 11 design in the amount of $300,000 will be included in the upcoming Water and Wastewater Utility Revenue Bond issue. On July 13, 2010,.the Utility Advisory Committee forwarded a favorable recommendation to City Council to proceed with the contract. I.t is recommended that the Council approve and authorize the City ,Manager to sign an Agreement with PACE Engineers, Inc., for professional services in an amount not to exceed $165,100. Attachment: Map of study area �1 F-51 Tasks Budget 1. Project management and meetings $27,000 2. Hydrologic 1 hydraulic analysis $24,000 3. Initial environmental assessment $20,500 4. Initial geotechnical evaluation $38,500 5. Alternative analysis 1 schematic layout I cost estimates $29,100 G. Design and permitting of several small outfall and culvert repairs $20,000 Total $165,100 The alternatives analysis for this project will include the following: 1. An evaluation of the feasibility of implementing low impact development (LID) stormwater facilities such as rain gardens, 2. Potential deep infiltration wells, and. 3. The more traditional approach of increasing the size of the underground pipe systems. If the LID alternative is feasible for this project, City staff plans to submit a grant application to the Department of Ecology for the LID elements of the project. Increased pipe size would likely require construction of a new stormwater outfall to the lagoon at the base of Ediz Hook. If rain gardens or deep infiltration wells are feasible, these alternatives would be brought to the neighborhood residents for their input. A map illustrating the study area is attached for more information. Sufficient funds for Phase I. design are included in the current 2010 Stormwater Utility Budget. Additional funds for Phase 11 design in the amount of $300,000 will be included in the upcoming Water and Wastewater Utility Revenue Bond issue. On July 13, 2010,.the Utility Advisory Committee forwarded a favorable recommendation to City Council to proceed with the contract. I.t is recommended that the Council approve and authorize the City ,Manager to sign an Agreement with PACE Engineers, Inc., for professional services in an amount not to exceed $165,100. Attachment: Map of study area �1 F-51 N:ICCOUNCILIFINAL15tnrmwaler Engineering 5ervice5.doc F-52 • J 11 • GELES DATE: July 20, 2010 To: CITY COUNCIL FROM: KENT MYERS, CITY MANAGER SUBJECT: LODGING TAx ADVISORY COMMITTEE APPOINTMENTS Summary: The terms on the Lodging Tax. Advisory Committee (LTAC) expired as of February 28, 2010. It is therefore necessary to appoint new members. Interested applicants were interviewed by Mayor and LTAC Chair Dan Di Guilio and City Manager Myers. Recommendations for filling positions are listed below. Recommendation: Approve appointments to the Lodging Tax Advisory Committee for terms ending February 28, 2011. Background / Analysis: The Lodging Tax Advisory Committee (LTAC) reviews, comments and. makes recommendations to the City Council on activities and/or facilities to be funded by lodging excise tax revenues. The LTAC is composed of nine members appointed to one-year terms, with possible reappointment for successive terms. Per the ordinance that established the LTAC, membership is structured as follows: Voting Members: + One City Councilmember • Two members who are representatives of businesses required to collect lodging excise tax. • Two members who are persons involved in activities to be funded by lodging tax revenue. Non-voting /Members: • Three citizen -at -large members who neither represent businesses required to collect the lodging excise tax nor are persons involved in activities authorized to be funded by the lodging excise tax. + One member who is a representative of the Port Angeles Forward Committee. Interested applicants were interviewed by Mayor Dan Di. Gu:ilio and City Manager Myers. Recommendations for filling the vacant positions are as follows: F-53 Memo to City Council — Lodging Tax Advisory Committee Appointment Page 2 Councilmember (l) Mayor Dan Di Guilio Lodging Tax Collector (2) Donya Alward. Robert Harbick Lodging Tax. Recipient (2) Scott Nagle Karen Hanan Citizen -At -Large 3 Non-voting Edna Petersen. I Andrew Mays Jack Harmon PA Forward. Representative () Non-voting Terry Roth F-54 • • • • • C❑UNCIL RATE: July 20, 2010 To: City Council FROM: Glenn A. Cutler, P.E., Director of Public Works and Utilities SUBJECT: College Substation Switch. Replacement, Project CL06-2010 Summary: This project is to replace one switch on the electric transmission system and the supporting structure that has severely deteriorated. Recommendation: Award and authorize the City Manager to sign a contract with Olympic Electric Inc., of Port Angeles, WA in the amount of $49,636.36, including tax, for the College Substation Switch Replacement, Project CL06-2010, Background/Analysis: In March of 2010,.it was discovered there were severely rotted portions of the wood structure supporting 69kU switch L20 near College Substation. The switch itself is old and in need of replacement. It is a critical switch and a failure during the next winter storm season could impact the entire City. A project to replace the switch and structure was not included in the 2010.Capital. Facilities Plan. On. April 20`h, the City Council approved adding an emergency 2010.capital project, CL06-2010, to replace switch. L-20 and the supporting structure, and approved proceeding with design and bidding for the work. Funding was to be from the Electric Utility operating reserves. Plans have been developed and bids solicited from all of the high voltage contractors on the Small Works Roster. Three bids were received: Contractor Bid Michels Corporation, Tumwater. WA 53,658.00 Olympic Electric, Inc., Port. Angeles, WA 49,636.36 City Electric, Inc., Snohomish, WA 78,162.90 Engineer's Estimate $ 80,000.00 It is recommended that the City Council award and authorize the City Manager to sign a contract with OIympic Electric, Inc., of Fort Angeles, WA in the amount of $49,636.36, including tax, for the College Substation Switch. Replacement, :Project CL06-201.0. NXCOUNC[L\F1h1AL1College Substation Switch Replacement, Project CL06-2010, Award Contract.doc F ` 55 'O_` 1 ``L • �, ES W A S H 1 N G T O N, U. S. A. �CITY COUNCIL MEMO DATF,: July 20, 2010 To: CITY COUNCIL FROM: WILLIAM BLoOR, CITY ATTORNEY Subject: AMENDMENT To FRIENDSHIP Drami N CONTRACT SUMMARY: The attached Amendment to Friendship Diversion Contract revises the insurance provisions of the contract. REcoMMENIIATIQIN: Authorize the City Manager to sign the contract Amendment. Discussion: Friendship Diversion Services ("Friendship") provides a variety of services for the City. Among other services, they administer Electronic Home Monitoring, Community Service, and some other programs that help us manage persons charged with or convicted of criminal offenses in District Court. The original contract required Friendship to cant' Errors and Omissions insurance in an amount of not less than $2 Million. Friendship proposes to reduce the limits of liability to $1 Million per occurrence with a $2 Million aggregate. The reason for the reduction is cost. The current cast to Friendship for $2 Million of insurance coverage is $13,404 greater than the cost for $1 Million. Friendship does not have the available budget to pay the increased insurance premium. This leaves the City with several options: we might 1) terminate the contract with Friendship; 2) reduce the contract requirement to $1 Million in insurance coverage; or 3) insist on $2 Million in . coverage and pay to Friendship an increased compensation to defray the cost. of these options, the first is probably not practical. The City needs the services provided by Friendship, their services benefit the City, and there is no other agency in the Port Angeles vicinity that offers similar services, The only true choices are the second and third. After weighing the potential risks and benefits, our recommendation is to reduce the contract requirement to $1 Million in insurance coverage. It is true that there is a potentialbenefit to the City in requiring the higher coverage. At the same time, Friendship bas not had a claim after more than 3 0 years in business. Based on that history, the risk can be assessed as relatively small. And, with i F-56 July 20, 2010 Memo to City Council, Page 2 Re. Amendment to Friendship Diversion Contract current economic conditions, the additional cost to the City would be a burden on our budget. While one could rationally reach a different conclusion, it seems to us that in our current situation, the better ofthe alternatives is to decrease the contract requirement to $1 Million of insurance coverage. If you have questions or would like to discuss this, please feel free to contact me at your convenience prior to the meeting. William Bloor City Attorney G:U.EOAL)a MPMOSUYMMOS-IDI 1CamciLFiimdshipL)irmsicn.072016s2.ivpd • • F-57 AMENDMENT TO PROFESSIONAL SERVICES CONTRACT BETWEEN CITY OF PORT ANGELES AND FRIENDSHIP DIVERSION SERVICES • THIS AMENDMENT is entered, into on the day of July, 2010 pursuant to a contract entered into between the parties on May 22, 2008. The parties agree that the contract shall remain in full force and effect, except for an amendment as follows: SECTION 15: INSURANCE Contractor shall carry for the duration of this contract errors and omissions insurance in an amount of not less than $2 million per occurence shall be amended to read: Friendship .Diversion shall carry for the duration of this contract, Errors and omissions insurance in an amount of not less than $1 million per occurence with a $2 million aggregate. The balance of Section 15 shall remain intact. IN WITNESS WHEREOF the parties hereto have executed this Amendment, which shall become effective on July 1., 2010.. Friendship Diversion Services City of Port Angeles By: Barbara E. Miller Executive Director C F-58 • • • NGELES DATE: July 20, 2010 TO: CITY COUNCIL FROM: TERRY K. GALLAGHER, CHIEF OF POLICE SUBJECT: INTERLOCAL COOPERATIVE LAW ENFORCEMENT AGREEMENT Summary: The Port Angeles Police Department (PAPD) and the Lower Elwha Klallam Tribe Police Department (LETP) provide law enforcement services in adjoining jurisdictions. This proximity results in both agencies providing assistance to the other agency on occasion, but most particularly during times of crises. This assistance has historically been provided without benefit of an interlocal agreement. The situation, as it currently exists, creates issues of authority and liability for both public agencies that_this agreement will ameliorate. Further, the agreement allows officers of both the PAPD and the LEKT to enjoy a full and equal -professional relationship to the benefit of the citizens of both communities. Recommendation: Authorize the Mayor to sign the Interlocal Cooperative Law Enforcement Agreement between the City and the Lower Elwha Klallam Tribe. Background / Analysis: From January 2009 to date, officers of the Port Angeles Police Dept. (PAPD) responded to lands owned or controlled by the Lower Elwha Klallam Tribe on six occasions in response to requests for assistance from Lower Elwha Tribal Police (LETP). PAPD response ranged from the provision of K-9 units to track felony suspects to assisting with an incident involving a man barricaded in his home and threatening others. Similarly, LETP officers have responded to assist PAPD during times of crises and have been particularly helpful in providing police assistance during events such as the Paddle Journey. Additionally, the two agencies have trained together for years during both tactical and mass casualty exercises. PAPD knows that Lower Elwha officers are but a phone or radio call away when help is needed to police an event that escalates beyond the resources of the Department. LETP knows that, similarly, PAPD will be there for them. The attached Interlocal Agreement allows the mutually beneficial relationship that exists between PAPD and the LETP to continue with the proper legal protections in place. With the signing of this agreement, PAPD and LETP officers will have clear authority when (and only when) responding to requests for assistance. The agreement, as presented, has passed legal review with both public agencies. Resolution #5.1-10 Approval of Attached Interlocal Cooperative Law Enforcement Agreement Between the City of Port Angeles And the Lower Elwha Klallam Tribe WHEREAS, the Lower Elwha Community Council is the governing body of the Lower Elwha Klallam Tribe in accordance with the Treaty of Point -No -Point, January 26, 1855, the Tribe's Constitution -and Bylaws, approved by the Secretary -of the Interior on April 29, 1968, pursuant to the Indian Reorganization Act of June 18, 1934; and WHEREAS, the Business Committee of the Lower Elwha Community Council is the duly elected representative body of the Tribe, and is responsible for ensuring the Health, Safety, Education, Welfare, and Social and Economic Development, Natural Resources, Law and Order, Judicial Services, Housing and to preserve and protect Culture and Treaty Rights, and otherwise promote the interests of the Tribe and its members; and WHEREAS, under the Tribe's inherent authority and its Constitution, the Community Council and Business Committee possess broad authority to safeguard the public safety of the Reservation and all other lands over which the Tribe exercises jurisdiction, and to enter into agreements with other governments to protect the interests of the Tribe; and WHEREAS, the Lower Elwha Tribal Police Department is authorized to protect the public safety and to enforce tribal and federal law within the Reservation, and frequently is called upon to assist or cooperate with the City of Port Angeles Police .Department, sometimes in matters outside the area of the Tribe's jurisdiction; and WHEREAS, the Lower Elwha Tribal Police Department frequently has need to call upon the Port Angeles Police Department to assist or cooperate, sometimes in matters within the Tribe's area of jurisdiction; and WHEREAS, the Tribe and the City both desire to improve the legal basis upon which their respective police departments provide assistance to one another; and 1-2 0 . WHEREAS, the police departments of the Tribe and City have negotiated the attached Interlocal Cooperative Law Enforcement Agreement to set out the terms upon which they may cross - commission each other's officers and provide assistance and cooperation to one another, and the Office of General Counsel has reviewed and approved the Agreement. THEREFORE BE IT NOW RESOLVED THAT, the Lower Elwha Klallam Business Committee hereby approves the attached Interlocal Cooperative Law Enforcement Agreement Between the City of Port Angeles And the Lower Elwha Klallam Tribe, and authorizes and directs the Chairperson or her designee to execute this Agreement on behalf of the Tribe as soon as possible after the Port Angeles City Council approves the Agreement for the City. Certification The foregoing Resolution 51-10 was approved by the Lower Elwha Tribal Business Committee at a duly authorized meeting on July 13, 2010, with 3- members present, constituting a quorum, and was approved by a vote of ;Z _ N against, and abstaining. Frances G. Charles, Chairperson • Council Member 1-3 r Legal Dept. Draft 7.7. 10 INTERLOCAL COOPERATrvE LAW ENFORCEMENT AGREEMENT BETWEEN THE CITY OF PORT ANGELES AND TILE LOWER ELWFIA .KLALLAm TRIBE This Agreement to provide mutual law enforcement assistance is entered into between the City of Port Angeles (hereinafter "City"), a political subdivision of the State of Washington, and the Lower Elwha .Klallam Tribe (hereinafter "Tribe"), a federally recognized Indian Tribe organized pursuant to the Indian Reorganization Act, 25 U.S.C. § 476, with a constitution and bylaws approved by the Secretary of the Interior. Both parties are "public agencies" as defined in RCW 39.34.020, Washington's Interlocal Cooperation Act. RECITALS WHEREAS, the Lower Etwha IClallam Indian Reservation (hereinafter the "Reservation") is located, in part, adjacent to the corporate limits of the City; and WHEREAS, other Reservation and Off -reservation Indian Trust Lands may be located in or near the corporate limits of the City; and 0 WHEREAS, the Tribe has certain law enforcement powers on Reservation lands and Off - reservation Indian Trust Lands; and WHEREAS, the City and the Tribe each wish to facilitate a cooperative approach to law enforcement for their mutual aid and to enhance public safety for all persons and property witbin the Reservation, on Off -Reservation Indian Trust Lands, and within the corporate limits of the City; and WHEREAS, under the authority of Lower Elwha Tribal resolution , adopted by the Tribe on and approved by the United States Department of Interior, the Lower Elwha Klallam Tribal Police Chief grants Tribal Police Commissions to members of the Port Angeles Police Department; and WHEREAS, under the authority of the City of Port Angeles resolution , adopted by the City Council on , the City of Port Angeles Police Chief grants City Police Special Commissions to members of the Lower Elwha Klallarn Tribe; and WHEREAS, all officers commissioned wider this Agreement must meet the standards of RCW 10.93 and the Training Standards adopted by the Washington State Criminal Justice Training Commission; and IM • WHEREAS, the Tribe and the City each respects the sovereignty and political integrity of the other, and each desires to enter into an Agreement reflecting a full government -to - government relationship in regard to criminal jurisdiction and the Mutual Aid of Peace Officers Powers Act. NOW, THEREFORE, this Agreement is entered into under the Washington Interlocal Cooperation Act (RCW 39.34 et seq.), the Washington Mutual Aid Peace Officers Powers Act (RCW 10.93), and Article IV, Section l.a. of the Constitution of the Lower Elwha Klallam Tribe, and the parties agree as follows; 1. Definitions. As used in this Agreement, a. "Approved Tribal Officer" means a law enforcement officer employed by the Tribe who meets the standards of RCW 10.93, the Training Standards adopted by the Washington State Criminal Justice Training Commission and the standards of the Port Angeles Police Department, and who has been granted a Special Commission by the Port Angeles Police Department. `_`Approved Port Angeles Officer" means a..law enforcement officer employed .... by the City who meets the standards of RCW 10.93 and the Training Standards . adopted by the Washington State Criminal Justice Training Commission, and who has been granted a Special Commission by the Lower Elwha Klallam Tribal Police Chief. • C. "Designated Offenses" means all violations of the laws of the United States, State, County, City or Tribe, whether civil or criminal, and of any Traffic Code adopted by the City or the be, d. "Port Angeles Police Special Commission" means a Port Angeles Police Department special commission granted in writing to an Approved Tribal Officer by the Port Angeles Chief of Police in accordance with this Agreement. e. "Lower Elwha Klallam Tribal Police Special Commission' means a Lower Elwha IClallam Tribal Police Department special commission granted in writing to an Approved Port Angeles Officer by the Lower Elwha Tribal Chief of Police in accordance with this Agreement. f. "Reservation' means the Lower Elwha Klallam Indian Reservation and all territory within the exterior boundaries thereof, including, without limitation, all roads, rights of way, easements and waterways within such exterior boundaries. g. "Off -reservation Indian Trust Land" means land, other than land within the Reservation, held by the United States in trust for the Tribe or for members of the Tribe. -2- 1-5 0 Legal Dept. Draft 7.7. 10 2. Jurisdiction Preserved. Nothing in this Agreement shall be construed to cede or alter any jurisdiction of either party to this Agreement, to modify the legal requirements for arrest or search and seizure, to otherwise modify legal rights of any person not a party to this Agreement, to accomplish any act contrary to state or federal law, or to subject the parties to any liability to which they would not already be subject to by law. Issuing Special. Commissions. a. Port Anreles Police Special Commissions. The .Port Angeles City Police Chief shall have sole discretion to grant or deny Port Angeles Police Special Commissions to Lower Elwha Klallam Tribal Police Officers and will consider only applications submitted in writing to the Port Angeles City Chief of Police or his designee. Each application must be accompanied by all background information on the applicant known to the Lower Elwha Tribal Police Department, appropriate waivers allowing standard Port Angeles Police Department pre-employment investigation and background checks, and such other. information as may be required. The. applicant. may be required to undergo a polygraph examination. The applicant must meet all the standards required for a Port Angeles Police Officer examination then in effect. The Port Angeles Police Chief will not issue a special O commission to an individual officer of the Lower Elwha Klallam Tribe Police Department unless that officer meets the standards of RCW 10.93 and has completed the Washington State Criminal Justice Training Academy or its equivalent as determined by the Port Angeles City Police Clie£ The Port Angeles City Police Chief shall grant or deny each application within a reasonable time. b. Lower Elwha Klallam Tribal Police Special Commissions. The Lower Elwha Klallam Tribal Police Chief shall have sole discretion to grant or deny Lower Elwha Klallam Tribal Commissions to Port Angeles City Police Officers and will consider only applications submitted in writing to the Lower Elwha Klallam Tribal Chief of Police or his designee. Each application must be accompanied by all background information on the applicant known to the Port Angeles City Police Department, appropriate waivers allowing standard Lower Elwha Klallam Tribal Police Department pre-employment investigation and background checks, and such other information as may be required. The applicant may be required to undergo a polygraph examination. The applicant must meet all the standards required for a Lower Elwha Klallam Tribal Police Officer examination then in effect. The Lower Elwha Klallam Tribal Police Chief will not issue a special commission to an individual officer of the Port Angeles City Police Department unless that officer meets the standards of RCW 10.93 and has completed the Washington State Criminal Justice Training Academy or its equivalent as determined by the Lower Elwha Klallam Tribal Police Chief. The Lower EIwha Klallam Tribal Police Chief shall grant or deny each application within a reasonable time. Suspension and Revocation of Special Commissions. a. The Port Angeles City Police Chief shall have sole discretion to grant or deny, -3- o M • revolve or suspend any special commission to Tribal Police Officers under this Agreement. The Port Angeles City Police Chief shall provide prompt written notice of any suspension or revocation to the Lower Elwha Tribal Police Chief. b. The Lower Elwha Tribal Police Chief shall have sole discretion to grant or deny, revolve or suspend any special commission to City of Port Angeles Police Officers under tlus Agreement. The Lower Elwha Tribal Police Chief shall provide prompt written notice of any suspension or revocation to the Port Angeles CityPolice Chief. 5. Scope of Powers. a. Lower Elwha Tribal Police Commissions granted under this Agreement shall authorize Approved Port Angeles Officers to exercise on the Reservation and on Off -reservation Trust Lands, all powers of a Lower Elwha Tribal Police Officer pursuant to applicable law when acting under invitation or at the request of the agency of jurisdiction, under exigent circumstances as set out in subsection c. of this section, or to provide assistance with special events, or as pail of collaborative enforcement efforts. b..... Port Angeles .Police Special Commissions granted under this Agreement shall - authorize Approved Tribal Officers to exercise within the City all powers of a Port Angeles • Commissioned Police Officer pursuant to applicable law when acting under invitation or at the request of the agency of jurisdiction, under exigent circumstances as set out in subsection c. of this section, or to provide assistance with special events, or as part of collaborative enforcement efforts. • C. An Officer acting under a special commission granted under this Agreement may act without prior request of the agency of jurisdiction only under exigent circumstances and in accordance with the procedures set out in Section 8.c of this Agreement. The Chief of Police for each jurisdiction, or his designee, shall be notified of the exercise of this special eonunission at the earliest possible opportunity. 6. Out -of -Jurisdiction Law Enforcement Assistance. Pursuant to RCW 39.34 et seq., RCW 10.9, and RCW 39.34.020, the situations for which the Port Angeles Police Department and the Lower Elwha Tribal Police Department are authorized to render law enforcement assistance in each agency's respective jurisdiction under this Agreement are the following: a. Life or death incidents; b. Accidents or incidents involving a serious injury or fatality; C. Crime scenes involving the protection of human life; d. Officer in trouble or officer requesting assistance; e. Threats to public health or safety; f. Incidents directly affecting public safety or public resource protection; g. Felonies committed in the presence of the respective law enforcement officer; -4- 1-7 Legal Dept. Draft 7.7.10 h. Misdemeanors committed in the presence of the respective law enforcement officer that pose a threat to the public's health or safety. 7. Exercise of Powers. a. Approved Tribal Officers and Approved Port Angeles Officers commissioned pursuant to this Agreement shall comply with the applicable constitutional and statutory provisions concerning enforcement of state, tribal, or federal laws, as appropriate, when exercising such authority. b. Approved Tribal Officers and Approved Port Angeles Officers shall make referrals for prosecution resulting from exercise of a Tribal or Port Angeles Police Special Commission to the Chief of Police or his designee of the respective jurisdiction. The Chief of Police for the respective jurisdiction shall make referrals to the appropriate prosecuting authority for filing in the appropriate courts, whether federal, state, tribal or municipal. Operational Protocols. a. All Approved Tribal Officers shall at all times remain under the control of the _ Lower Elwha Tribal Police Department, but when acting under the authority of the City of Port' Angeles Special Commission, said Approved Tribal Officers shall abide by the Lutes and regulations of the City of Port Angeles Police Department, all municipal laws and regulations, all state laws and regulations, the state and federal constitutions, and shall be subject to the direction of the City of Port Angeles Police Department. b. All Approved Port Angeles Officers shall at all times remain under the control of the City of Port Angeles Police Department, but when acting under the authority of the Lower Elwha Police Special Commission, said approved Port Angeles Officers shall abide by the rules and regulations of the Lower Elwha Tribal Police Department, all tribal laws and regulations, the Lower Elwha Tribal Constitution, and shall be subject to the direction of the Lower Elwha Tribal Police Department. C. In the event that an Approved Tribal Officer or Approved Port Angeles Officer observes any emergency or life-threatening situation, the Approved Officer shall, if feasible, attempt to make radio contact with the appropriate jurisdiction and then shall render such aid or assistance as deemed necessary. In such circumstances, it will be implied that the jurisdiction is in need of assistance and that the Approved Officer is authorized by said agency to provide immediate aid or assistance without further request or delay. Any Approved Officer exercising powers or duties obtained as a result of this paragraph of the Agreement must give notice to the appropriate jurisdiction immediately and submit a written report within twenty-four (24) hours. d. The Port Angeles Police Department agrees to respond to requests for emergency law enforcement assistance fiom the Tribal Police within reasonable limits as determined by the Port Angeles Police Chief or his designee. The Port Angeles Police Department agrees to respond to requests from the Tribal Police for the K-9 unit under the terms, policies and -S- : • guidelines for the K-9 unit established by the Port Angeles Police Department. The Lower Elwha Tribal Police Department agrees to respond to requests for emergency law enforcement assistance from Port Angeles Police within reasonable limits as determined by the Tribal Police Chief, or his designee. The Lower Elwha Tribal Police Department agrees to respond to requests from the Port Angeles Police Department for the Tribe's K-9 unit under the appropriate Tribal Police Department procedures. e. In order to facilitate a better understanding of the law enforcement duties and expectations of federal, state, and tribal law enforcement personnel, the Port Angeles Police Department and the Lower Elwha Tribal Police Department may develop more detailed operational protocols. 9. Report of Exercise of Special Commission Powers. Any action taken by an Approved Tribal Officer pursuant to a Port Angeles Police Special Commission shall be reported immediately to the Port Angeles Police Department through PenCom Communications. Any action taken by an Approved Port Angeles Officer pursuant to a Tribal Police Commission shall be reported immediately to the Lower Elwha Tribal Police Department • through PenCom Communications. Pursuant to Sections 5.c and 8.c, above, the notifying Officer shall provide a written report to the other agency of the action taken within twenty-four (24) hours of the enforcement action. 10. Prosecution/Function as Witnesses. The parties recognize that the cooperation of law enforcement officers, including making court appearances as witnesses, is necessary for the effective prosecution of crimes and offenses resulting from enforcement actions taken pursuant to this Agreement. The parties agree to provide officers when necessary as witnesses in CIallam County Superior, District, and other courts, the Lower Elwha Klallam Tribal Court, or Federal Courts. The Port Angeles Police Department and the Lower Elwha Tribal Police Department shall include all courts specked in this section in their written procedures on court appearances, indicating that necessary appearances by officers are required in all courts. 11. Hold Harmless 1 Indemnification. a. Lower Elwha Klallarn Tribe. The Tribe agrees to assume all liability for the acts or omissions of Tribal officers, their agents or employees and the Tribe expressly agrees to hold harmless, indemnify and defend the City of Port Angeles, the City of Port Angeles Police Department and all the elected and -G- W Legal Dept. Draft 7.7. 10 appointed officials, officers, agents and employees from any and all liability, loss, claim, complaint or damage, including reasonable costs of defense, that result from, arise out of, or are in any way connected with the acts or omissions of Tribal Officers, agents, or employees. b. City of Port Angeles. The City agrees to assume all liability for the acts or omissions of Port Angeles City Officers, their agents or employees and the City expressly agrees to hold harmless, indemnify and defend the Lower Elwha Klallam Tribe, and Lower Elwha Tribal Police Department, and all the elected and appointed officials, officers, agents and employees from any and all liability, loss, claim, complaint or damage, including reasonable costs or defense that result from, arise out of, or are in any way connected with the acts or omissions of Port Angeles City Officers, agents, or employees. C. Except as provided in this Section 11, under no circumstances shall the 'Tribe or City be held liable for the acts or omissions of employees, agents, or representatives of the other party that are performed under color of this Agreement. The Tribe and the City shall hold harmless and defend each other from all claims, judgment, or liabilities by third parties for bodily injury, property damage, personal injury, civil liability of any time and nature which may arise out of the activities of their respective employees, agents, or representatives, pursuant to this Agreement; or the police special commissions described herein. 12. Insurance 1 Immunities. a. Lower Elwha I(lallam Tribe. The Tribe agrees to procure and maintain in force an occurrence -based insurance policy with commercial insurers authorized to write in the State of Washington in an amount no less than One Million Dollars ($1 Million) per occurrence, for all potential liability arising from or connected with any action taken pursuant to this Agreement and including, but not limited to, insuring against claims for false imprisonment, false arrest, public liability, property damage, police professional liability, and violation of civil rights, and shall maintain the policy in fu11 force and effect during the life of this Agreement. If this Agreement is terminated for any reason, the Tribe agrees to keep in force this insurance for all actions taken under this Agreement until such time as the protection from suit is granted by the statute of limitations. The insurance policy shall name the City, its officers and employees as "additional insured" as relates to performance under this Agreement and the City shall receive, annually, a Certificate of Insurance as evidence of this coverage together with an endorsement adding the City as an additional insured. The Tribe waives its right to assert sovereign immunity as a defense to any lawsuit or complaint by the City pursuant to this Agreement and consents to the jurisdiction of the courts of the State of Washington to hear and resolve any such lawsuit or complaint. The parties agree that in discharging this indemnification obligation, the City shall look first to the proceeds of insurance procured by the Tribe herein and the policy of insurance obtained by the Tribe shall prohibit the insurer from asserting a defense of sovereign immunity to the claim made under the policy. The Tribe agrees to assign over to the City, at its request, any and all of its -7- 1-10 O • rights against the insurer to effectuate a payment of its indemnification provision. All immunities enjoyed by City law enforcement officers under state or federal law shall inure to the benefit of Approved Tribal Officers when acting wider a police special commission pursuant to the terms of this Agreement. b. City of Port Angeles. The Tribe acknowledges that the City of Port Angeles is self-insured and a member of WCIA. The City agrees to maintain membership in WCIA, or successor, or equivalent insurance risk pool for the term of this Agreement. Should the City discontinue membership in WCIA or equivalent agency during the life of this Agreement, the City shall secure appropriate replacement coverage equivalent to coverage provided by the Tribe and name the Tribe as an additional insured with evidence of coverage. All immunities enjoyed by Tribal law enforcement officers under State or Federal law shall inure to the benefit of Approved Port Angeles officers when acting under a police special commission pursuant to the terms of this Agreement. _ c. Federal Tort Claims Act. Nothing in this Agreement shall preclude the Tribe, the City, or their respective ^~ employees, agents or representatives from seeking the benefits and protections of the Federal • Tort Claims Act. It is expressly agreed and understood that the indemnification provided for in this Agreement is for the benefit of the Tribe and the City and their respective officials, officers and employees only and there is no intention by the parties to confer any rights hereunder to any person, entity or third party, intentionally, unintentionally or by implication. 13. Governing Law, Dispute Resolution, and Venue. This Agreement shall be govemed by, construed, and enforced in accordance with the laws of the State of Washington. Any controversy, dispute, claim or counterclaim of whatever nature arising out of, in connection with, or in relation to the interpretation, performance, or breach of this Agreement, including without limitation and any claim based upon contract, equity, tort or statute, shall be resolved by final and binding arbitration — Provided that the parties will first seek to resolve any dispute through good -faith negotiation and may, on a case- by-case basis, agree to mediation prior to binding arbitration. The Tribe recognizes that the provisions for binding arbitration set out in this section constitute a waiver of the Tribe's sovereign immunity for purposes of the arbitration and for enforcement of any arbitration award or judgment in the Superior Court of Washington for Clallam County. The City or the Tribe may initiate arbitration by providing written notice of intent to arbitrate to the other party, together with a statement of the matter in controversy. It is the intent of the parties that the arbitration be conducted by a single arbitrator. If within thirty (30) days of the notice of intent to arbitrate, the parties are unable to agree upon such single arbitrator, the City and the Tribe each may appoint an arbitrator by providing written notice of the name of an arbitrator to the other. If either the City or the Tribe does not so appoint an arbitrator within ten • -g- Legal Dept. Draft 7.7. 10 (10) business days after the other party appoints an arbitrator, the single appointed arbitrator shalt act as the sole arbitrator of the specified controversy. If each party appoints an arbitrator, the two arbitrators shall meet promptly and attempt to select a third arbitrator. If the two appointed arbitrators are unable to agree on a third arbitrator within ten (10) business days after the second arbitrator is appointed, either the City or the Tribe may apply to the Superior Court of Claliam County for the selection of a third arbitrator. Once appointed, the three -arbitrator panel shall determine the specified controversy. Each party shall bear the cost of any arbitrator it appoints, and one-half (1/2) of the cost of appointing a third arbitrator and the third arbitrator's fee. Any arbitrator appointed under this provision must be an active member of the Washington State bar. The arbitration niles and procedures in Chapter 7.04 RCW shall govern the arbitration process, the Washington State rules of civil procedure shall govern pre -hearing discovery to the extent not incompatible with the procedures set forth in Chapter 7.04 RCW, and the law of evidence of the State of Washington shall govern the presentation of evidence at the arbitration hearing. An award or decision rendered by a majority of the arbitrators appointed under this Agreement shall be final and bi iding. on all parties to_ the proceeding, and judgment upon any award or decision rendered by the arbitrators may be entered in the Superior Court of Clallam County, Washington, and enforced in the same manner as any other judgment. Nothing in this Agreement shall be deemed or construed to confer on the arbitrator or arbitrators any authority, power, or right to alter, change, amend, modify, add to, or subtract from any of the provisions of this Agreement, except to the extent that any part of this Agreement is determined to be contrary to applicable law. 14. Amendment. No changes or modifications to this Agreement shall be valid or binding upon the parties unless such change or modifications are mutually agreed to in writing and executed by the parties in the same manner and formality as the original Agreement by authorized representatives. 15. Severability. It is understood and agreed to by the parties hereto that if any part or provision of this Agreement, or its application to any person or circumstance, is held illegal or invalid, the remaining parts or provisions, or application of the parts or provisions of the Agreement to other persons or circumstances, shall not be affected, and the rights and obligations of the parties shall be construed as if the Agreement did not contain the illegal or invalid pail. Because the source of legal authority to grant, revoke, and suspend the police special commissions described in this Agreement is separate from and independent of the terms of this Agreement, the invalidity of all or a portion of this Agreement shall have no affect on the validity of such special commission, -9- 1-12 0 J which shall remain in effect until suspended or revoked at the discretion of the parties' Police Chiefs or their designees. 16. Integration. This Agreement contains terms and conditions agreed upon by the parties. The parties agree that there are no other understandings, oral or otherwise, regarding the subject matter of this Agreement. 17. Notice. Any notice required or permitted to be given under this Agreement shall be deemed sufficient if given in writing and sent by registered or certified mail. City of Port Angeles notices shall be sent to: Chief of Police Port Angeles Police Department 321 East 5`' Street, P,O. Box 1.150 Port Angeles, WA 98362 • Lower Elwha Irlallam Tribe notices shall be sent to: • Chief of Police • Lower Elwha Tribal Police Department 2851 Lower Elwha Road Port Angeles, WA 98363 18. Term \ Duration. Either party may, through its authorized officials, withdraw from this Agreement upon sixty (60) days written notice to the other party. Withdrawal from this Agreement by either party does not affect or diminish authority exercised prior to the effective date of such withdrawal. Withdrawal shall not relieve either party of its Agreement to insure without interruption or indemnify the other party as required herein .for liability or expense arising out of actions prior to the time of withdrawal or when revocation becomes effective. The Agreement shall commence upon execution by both parties, as signed and dated below. The Agreement shall be effective for a period of five (5) years and shall be deemed renewed successively for five (5) years at the end of each term or renewal, unless the party to be bound has earlier withdrawn or set forth its desire to have thus Agreement terminate at its regular termination date. -to- 1-13 Legal Dept. Dram 7.7. 10 19. Filing of the Agreement with County Auditor and/or Posting on Website. It is mutually agreed by the parties that this Agreement shall be filed with the Clallam County Auditor after it is signed by both parties, or in lieu thereof, posted on the official website of each party. Recording costs shall be equally borne between the parties. 20. Warranty. The signers to this Agreement warrant that they have the power and authority and are duly authorized by their respective City Council and\or Tribal Council to enter into this Agreement on behalf of the entity for whom they execute this Agreement in a representative capacity. CITY OF PORT ANGELES LOWER Ei.wHA KLAT.LLAM TME Mayor. Tribal ChOperson . Dated Dated Attest: Janessa Hurd, City Clerk Approved as to form: Approved as to form: William E. Bloor, City Attorney Stephen H. Suagee, LEKT General Counsel 0:\LEGAL\AGREEMENTS&CONTRACTS\2010 Agrmts&Contracts\City-LEKT Iiterlocal.0706I0.doex -11- 1-14 0 0 0 RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington (City), authorizing the Mayor to enter into an. Interlocal. Agreement between the City and the Lower Elwha Klallam Tribe (Tribe) for Cooperative Law Enforcement. WHEREAS, the Port Angeles Police Department and the Lower Elwha K,lallam Tribe Police Department provide law enforcement services in adjoining jurisdictions; and WHEREAS, this proximity results in both agencies providing assistance to the other agency on occasion; and WHEREAS, the City of Port Angeles is authorized to enter into interlocal agreements pursuant to RCW 39.34.020 with qualifying public agencies, such as the Lower Elwha Klallam Tribe; and WHEREAS, this cooperative inter -agency assistance enhances public safety for all persons and property with in the corporate limits of the City, as well as Reservation and on Off - Reservation ;Indian Trust Lands; and WHEREAS, an Interlocal. Agreement will formalize the relationship between the two agencies and establish procedures and set limits of authority and liability; NOW, THEREFORE, HE IT RESOLVED by the City Council of the City of Port Angeles, Washington as follows: It is beneficial to the citizens of Port Angeles to have the assistance of the Lower Elwha Klal:lam. Tribal. Police to assist Port Angeles Police Department. Officers when needed, and it is beneficial to the members of the Lower Elwha Klallam Tribe to have Officers -1- of the Port Angeles Police Department assist Lower Elwha Klallam Tribal Police when needed, particularly in times of crisis, as set forth in the attached Interlocal Cooperative Law Enforcement Agreement. 2. The proposed Interlocal Cooperative Law Enforcement Agreement appropriately sets forth the terms and conditions upon which the police departments of the Tribe and City may cross -commission each others officers and provide assistance and cooperation to one another. 3. The Mayor, on behalf of the City, is authorized to execute the Interlocal Cooperative Law Enforcement Agreement between the City of Port Angeles and the Lower Elwha Klallam Tribe. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 20th day of July, 2010. Dan Di Guilio, Mayor ATTEST: APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney G:\LEGAL\a ORDINANCES&RESOLUI'IONS\RESOLUTIONS.2010\15.LEKI' Interlocal Law Entbrcemnn Agmt.072010.wpd (July 16, 2010) IWIC INTERLOCAL COOPERATm, LAW Em7oRCEMENT AGREEMENT BETWEEN THE CrrY OF PORT ANGELES AND THE LOWER ELWHA KLALLAM TRIBE This Agreement to provide mutual law enforcement assistance is entered into between the City of Port Angeles (hereinafter "City"), a political subdivision of the State of Washington, and the Lower Elwha Klallam Tribe (hereinafter "Tribe'), a federal;l,y „recognized Indian Tribe organized pursuant to the Indian Reorganization Act, 25 U.S.C. §476, with a constitution and bylaws approved by the Secretary of the Interior. Both parties are "public agencies" as defined in RCW 39.34.020, Washington's Interlocal Cooperation Act. RECITALS WHEREAS, the Lower E1wha Klallam. Tndian Reservation (hereinafter the "Reservation") is located, in part, adjacent to the corporate limits of the City; and WHEREAS, other Reservation and Off -reservation Indian Trust Lands may be located in or near the corporate limits of the City; and WHEREAS, the Tribe has certain law enforcement powers on Reservation lands and Off - reservation Indian. Trust Lands; and. WHEREAS, the City and the Tribe each wish to facilitate a cooperative approach to law enforcement for their mutual aid and to enhance public safety for all persons and property within the Reservation, on Off -Reservation Indian Trust Lands, and within the corporate limits of the City; and WHEREAS, under the authority of Lower Elwha Tribal Resolution 951-10, adopted by the Tribe on. July 1.3, 2010.and approved by the United States Department of Interior, the Lower Elwha Klallam Tribal. Police Chief grants Tribal Police Commissions to members of the Port Angeles Police Department, and. WHEREAS, under the authority of the City of Port Angeles Resolution , adopted. by the City Council on .July 20, 2010, the City of Port Angeles Police Chief grants City Police Special. Commissions to members of the Lower Elwha,Kl,allam 'Tribe; and WHEREAS, all officers commissioned under this Agreement must meet the standards of RCW 10.93 and the Training Standards adopted by the Washington State Criminal Justice Training Commission; and -l- WHEREAS, the Tribe and the City each respects the sovereignty and political integrity of the other, and each desires to enter into an Agreement reflecting a full government -to - government relationship in regard to criminal jurisdiction and the Mutual Aid of Peace Officers Powers Act. NOW, THEREFORE, this Agreement is entered into under the Washington. Interlocal Cooperation. Act (RCW 39.34 et seq.), the Washington .Mutual Aid Peace Officers Powers Act (RCW 10.93), and Article IV, Section La. of the Constitution of the Lower Elwha Klallam Tribe, and the parties agree as fellows: 1. Definitions. As used in this Agreement, a. "Approved Trivial Officer" means a law enforcement officer employed by the Tribe who meets the standards of RCW 10,93, the Training Standards adopted by the Washington State Criminal. Justice Training Commission and the standards of the Port Angeles Police Department, and who has been granted a Special Cointrussion by the Port Angeles Police Department. b. "Approved Port Angeles Officer" means a law enforcement officer employed by the City who meets the standards of RCW 10.93 and the Training Standards adopted by the Washington State Criminal Justice Training Corrunission, and who has been granted a Special Commission by the Lower Elwha IKlaillam Tribal Police Chief. C. "Designated Offenses" means all violations of the laws of the United States, State, County, City or Tribe, whether civil or criminal, and of any Traffic Code adopted by the City or the Tribe. d. "Port Angeles Police Special Commission" means a Port Angeles Police Department special commission granted in writing to an Approved Tribal Officer by the Port Angeles Chief of Police in accordance with this Agreement. C, "Lower Elwha Klallam Tribal Police Special Commission" means a Lower Elwha IKlallam. Tribal Police Department special commission granted in writing to an Approved Port Angeles Office by the Lower Elwha Tribal. Chief of Police in accordance with this Agreement. F. "Reservation" means the Lower E1wha Klallam Indian Reservation and all. territory within the exterior- boundaries thereof, including, without limitation, all roads, rights of way, easements and waterways within such exterior boundaries. g. "Ofd reservation Indian Trust Land" paeans land, other than land within the Reservation, held by the United. States in trust for the Tribe or for members of the Tribe. -2- 2. Jurisdiction Preserved. Nothing in this Agreement shall be construed to cede or alter any jurisdiction of either party to this Agreement, to modify the legal requirements for arrest or search and seizure, to otherwise modify legal rights of any person not a party to this Agreement, to accomplish any act contrary to state or federal law, or to subject the parties to any liability to which they would not already be subject to by law. 3, issuing Special Commissions. a. Part Angeles Police Special Commissions, The Port Angeles City Police Chief shall have sole discretion to grant or deny Port Angeles Police Special Commissions to Lower :Elwha Klallam Tribal. Police Officers and will consider only applications submitted in writing to the Port Angeles City Chief of Police or his designee. Each application must be accompanied by all background information on the applicant known to the Lower Elwha Tribal Police Department, appropriate waivers allowing standard Port Angeles Police Department pre-employment investigation and background checks, and such other information as may be required, The applicant may be required to undergo a polygraph examination. The applicant roust meet all the standards required for a Port Angeles Police Officer examination then in effect. The Port Angeles Police Chief will not issue a special commission to an individual officer of the Lower Elwha Klallam Tribe Police Department unless that officer meets the staxadards of RCW 10.93 and has completed the Washington State Criminal Justice Training Academy or its equivalent as determined by the Port Angeles City Police Chief. The Port Angeles City Police Chief shall grant or deny each application within a reasonable time, b. Lower Elwha Klallam Tribal Police Commissions. The Lower Elwha Klallam Tribal Police Chief shall have sole discretion, to grant or deny Lower Elwha. Klallam Tribal Commissions to Port Angeles City Police Officers and will consider only applications submitted inwriting to the Lower Elwha Klallam Tribal Chief of Police or his designee. Each application must be accompanied by all background information on the applicant known to the Port Angeles City Police Department, appropriate waivers allowing standard Lower Elwha Klallam Tribal Police Department pre-employment investigation and background checks, and such other infonnation as may be required. The applicant may be required to undergo a polygraph examination. The applicant must meet all the standards required ..for a Lower Elwha Klallam Tribal Police Officer examination then in effect, The Lower Elwha Klallam Tribal Police Chief will not issue a special commission to an individual officer of the Port Angeles City Police Department unless that officer meets the standards of RCW 10.93 and has completed the Washington State Criminal Justice Training Academy or its equivalent as determined by the Lower Elwha Klallam Tribal Police Chief. The Lower Elwha Klallam Tribal Police Chief shall grant or deny each application within a reasonable time. 4. Suspension and Revocation of Special Commissions. a. The Port Angeles City Police Chief shall have sole discretion to grant or deny, revoke or suspend any special commission to Tribal Police Officers ander this Agreement. The -3- Port Angeles City Police Chief shall provide prompt written notice of any suspension or revocation to the Lower Elwha Tribal Police Chief b. The Lower EIwha Tribal Police Chief shall have sole discretion to grant or deny, revoke or suspend any special commission to City of Port Angeles Police Officers under this Agreement. The Lower Elwha Tribal Police Chief shall provide prompt written notice of any suspension or revocation to the Port Angeles City Police Chief. Scope of Powers. a. Lower Elwha. Tribal Police Commissions granted under this Agreement shall authorize Approved Port Angeles Officers to exercise on the Reservation and on Off reservation Trust Lands, all powers of a. Lower Elwha Tribal Police Officer pursuant to applicable law when acting under ,invitation or at the request of the agency of jurisdiction, under exigent circumstances as set out in subsection c, of this section, or to provide assistance with special events, or as part of collaborative enforcement efforts. b. Port Angeles Police Special Commissions granted under this Agreement shall authorize Approved Tribal Officers to exercise within the City all powers of a Port Angeles Commissioned Police Officer pursuant to applicable law when acting under invitation or at the request of the agency of jurisdiction, raider exigent circumstances as set out in subsection c. of this section, or to provide assistance with special events, or as part of collaborative enforcement efforts. C. A.n. Officer acting under a special commission granted under this Agreement may act without prier request of the agency of jurisdiction only under exigent circumstances and in accordance with the procedures set out in Section 8.c. of this Agreement. The Chief of Police for each jurisdiction, or his designee, shall be notified of the exercise of this special commission at the earliest possible opportunity, 6. Out -of -Jurisdiction. Law Enforcement Assistance, Pursuant to RCW 39.34 et scq., RCW 10.9, and RCW 39.34.020, the situations for which the Port Angeles Police Department and the Lower Elwha Tribal Police Department are authorized to render law enforcement assistance in each agency's respective jurisdiction under Ns Agreement are the following: a. Life or death incidents; b. Accidents or incidents involving a serious injury or fatality, C. Chime scenes involving the protection ofhrunan life; d. Officer in trouble or officer requesting assistance; e. Threats to public health or safety; f Incidents directly affecting public safety or public resource protection; g. Felonies committed in the presence of the respective law enforcement officer; h. Misdemeanors committed in the presence of the respective law enforcement. officer that pose a threat to the public's health or safety. -4- 7. Exercise of Powers a. Approved. Tribal Officers and. Approved Port Angeles Officers commissioned. pursuant to this Agreement shall comply with the applicable constitutional and statutory provisions concerning enforcement of state, tribal, or federal laws, as appropriate, when exercising such authority. b. Approved Tribal Officers and Approved Fort Angeles Officers shall make referrals for prosecution resulting f-rorn exercise of a 'Tribal or Port Angeles Police Special Commission to the Chief of Police or his designee of the respective jurisdiction. The Chief of Policy; for the respective jurisdiction shall make referrals to the appropriate prosecuting authority lfbr filing in the appropriate courts, whether federal, state, tribal or municipal. 8. Operational Protocols. a. All Approved. Tribal Officers shall at all times remain under the control of the Lower Elwha Tribal Police Department, but when acting under the authority of the City of Port Angeles Special. Commission, said Approved. Tribal Officer shall abide by the rules and regulations of the City of :Port Angeles Police Department, all municipal laws and regulations, all state laws and regulations, the state and federal constitutions, and shall be subject to the direction of the City of Port Angeles Police Department. h. All Approved Port Angeles Officers shall at all times remain under the control of the City of Port Angeles Police Department, but when acting under the authority of the Lower Elwha Police Special Commission, said approved Port Angeles Officers shall abide by the rules and regulations of the Lower Elwha Tribal. Police Department, all municipal laws and. regulations, all state laws and regulations, the state and federal constitutions, and shall be subject to the direction of the Lower Elwha Tribal Police Dcpartment. C. In the event that an Approved Tribal Officer or Approved Port Angeles Officer observes any emergency or life-threatening situation, the Approved Officer shall, if feasible, attempt to make radio contact with the appropriate jurisdiction and then shall render such aid or assistance as deemed necessary. In such circumstances, it will be implied that the jurisdiction is in need of assistance and that the Approved Officer is authorized by said agency to provide immediate aid or assistance without further request or delay. Any Approved Officer exercising powers or duties obtained as a result of this paragraph of the Agreement must give notice to the appropriate j urisdiction immediately and submit a written report within twenty-four (24) hours. d. The Port Angeles Police Department agrees to respond to requests for emergency law enforcement assistance from the Tribal Police within reasonable limits as determined by the Port Angeles Police Chief or his designee. The Port Angeles Police Department agrees to respond to requests from the Tribal Police for the K-9 unit under the terms, policies and guidelines for the K-9 unit established by the Port Angeles Police Department. The ,Tower Elwha Tribal Police Department agrees to respond to requests for emergency law enforcement assistance from Port Angeles Police within reasonable limits as determined by the Tribal Police -5- Chief, or his designee. The Lower Elwha. Tribal. Police Department agrees to respond to requests from the Port Angeles Police Department for the Tribe's K-9 urtit under the appropriate 'Tribal. Police Department procedures. C. In order to facilitate a better understanding of the law enforcement duties and expectations of federal, state, or tribal law enforcement personnel, the Port. Angeles Police Department and the Lower Elwha Tribal Police Department may develop more detailed operational protocols. 9. Report of Exercise of Special. Commission Powers. Any action taken by an Approved Tribal. Officer pursuant to a Port Angeles Police Special Commission shall be reported immediately to the Port Angeles Police Department through. PenCom Communications. Any action taken by an Approved Port Angeles Officer pursuant to a Tribal Police Commission shall be reported immediately to the Lower Elwha Tribal Police Department through PenCom. Communications. Pursuant to Sections S.c. and 8.c., above, the notifying Officer shall provide a written report to the other agency of the action taken within twenty-four (24) hours of the enforcement action. 10. Prosecution 1 Function as Witnesses The parties recognize that the cooperation of law enforcement officers, including making court appearances as witnesses, is necessary for the effective prosecution of crimes and offenses resulting from enforcement actions taken pursuant to this Agreement. The parties agree to provide officers when necessary as witnesses in. Clallam County Superior, District, and other courts, the Lower Elwha Mallam. Tribal. Court, or Federal courts. The Port Angeles Police Department and the Lower Elwha Tribal Police Department shall include all courts specified in this section in their written procedures on court appearances, indicating that necessary appearances by officers are required in all courts. 11. Hold Harmless 1 Indemnification. a. Tower Elwha Klallam Tribe. The Tribe agrees to assume all liability for the acts or omissions of Tribal officers, their agents or employees and the Tribe expressly agrees to hold harmless, indemnify and defend the City of Port Angeles, the City of Port Angeles Police Department and all the elected and. appointed officials, officers, agents and employees from any and all liability, loss, claim, complaint or damage, including reasonable costs of defense, that result from, arise out of, or are in any way connected with the acts or omissions of Tribal Officers, agents, or employees. 51 b. City of Port Angeles. The City agrees to assume all liability for the acts or omissions of Port Angeles City Officers, their agents or employees and the City expressly agrees to hold harmless, indemnify and defend the Lower Elwha K.lallam Tribe, and Lower Elwha Tribal Police Department, and all the elected and appointed officials, officers, agents and employees from any and all liability, loss, claim, complaint or damage, including reasonable costs or defense that result from, arise out of, or are in any way connected with the acts or omissions of Port Angeles City Officers, agents, or employees. C. Except as provided in this Section 11, under no circumstances shall the Tribe or City be held liable for the acts or omissions of employees, agents, or representatives of the other party that are performed under color of this Agreement. The Tribe and the City shall hold harmless and defend each other from all claims, judgment, or liabilities by third parties for bodily injury, property damage, personal injury, civil liability of any time and nature which may arise out of the activities of their respective employees, agents, or representatives, pursuant to this Agreement, or the police special commissions described herein. 12. Insurance / Immunities. a. Lower Elwha Klallam Tribe. The Tribe agrees to procure and maintain in force an occurrence -based insurance policy with commercial insurers authorized to write in the State of Washington in an amount no less than One Million Dollars ($1 Million) per occurrence, for all potential liability arising from or connected with any action taken pursuant to this Agreement and including, but not limited to, insuring against claims for false imprisonment, false arrest, public liability, property damage, police professional liability, and violation of civil rights, and shall maintain the policy in full force and effect during the life of this Agreement. If this Agreement is terminated for any reason, the Tribe agrees to keep in force this insurance for all actions taken under this Agreement until such time as the protection from suit is granted by the statute of limitations. The insurance policy shall name the City, its officers and employees as "additional insured" as relates to performance under this Agreement and the City shall receive, annually, a Certificate of Insurance as evidence of this coverage together with an endorsement adding the City as an additional insured. The parties agree that in discharging this indemnification obligation, the City shall look first to the proceeds of insurance procured by the Tribe herein and the policy of insurance obtained by the Tribe shall prohibit the insurer fiom asserting a defense of sovereign immunity to the claim made under the policy. The Tribe agrees to assign over to the City, at its request, any and all of its rights against the insurer to effectuate a payment of its indemnification provision. All immunities enjoyed by City law enforcement officers under state or federal law shall inure to the benefit of Approved Tiibal Officers when acting under a police special commission pursuant to the terms of this Agreement. -7- b. City of Port Angeles. The Tribe acknowledges that the City of Port Angeles is self-insured and a. member of WCIA. The City agrees to maintain membership in WCIA, or successor, or equivalent insurance risk pool for the tenn of this Agreement. Should the City discontinue membership in WCIA or equivalent agency during the life of this Agreement, the City shall secure appropriate replacement coverage equivalent to coverage provided by the Tribe and name the Tribe as an additional insured with evidence of coverage. All immunities enjoyed by Tribal law enforcement officers under State or Federal law shall inure to the benefit of Approved fort Angeles officers when acting under a police special commission pursuant to the terms of this Agreement. C. Federal Tort Claims Act. Nothing in this Agreement shall preclude the Tribe, the City, or their respective employees, agents or representatives from seeking the benefits and protections of the .Federal Tort Claims Act. It is expressly agreed and understood that the indemnificationprovided for in this Agreement is for the benefit of the Tribe and the City and their respective officials, officers and employees only and there is no intention by the parties to confer any rights hereunder to any person, entity or third party, intentionally, unintentionally or by implication. 13. Tribe's Waiver of Immunity. The Tribe waives its right to assert sovereign immunity as a defense to any 'lawsuit or complaint by the City pursuant to this Agreement and consents to the jurisdiction of the courts of the State of Washington to hear and resolve any such lawsuit or complaint. 14. Governing Law, Dispute Resolution, and Venue, This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Washington. Any controversy, dispute, claim or counterclaim of whatever nature arising out of, in connection with, or in relation to the interpretation, perforinance, or breach of this Agreement, including without limitation and any claim based upon contract, equity, tort or statute, shall be resolved by final and binding arbitration, provided that the parties will first seek to resolve any dispute through good --faith negotiation and may, on a case-by-case basis, agree to mediation prior to binding arbitration. The Tribe recognizes that the provisions for binding arbitration set out in this section constitute a waiver of the Tribe's sovereign immunity for purposes of the arbitration and for enforcement of any arbitration award or judgment in the Superior Ccurt of Washington for Clallarn County. The City or the Tribe may initiate arbitration by providing written notice of intent to arbitrate to the other party, together with a statement of the matter in controversy. It is the intent of the parties that the arbitration be conducted by a single arbitrator. If within thirty (34) days of the notice of intent to arbitrate the parties are unable to agree upon such single arbitrator, the City and the Tribe each may appoint an arbitrator by providing written notice of the name of an arbitrator to the other. If either the City or the Tribe does not so appoint an arbitrator within ten (10) business days after the other party appoints an arbitrator, the single appointed arbitrator 51.2 shall act as the sole arbitrator of the specified controversy. If each party appoints an arbitrator, the two arbitrators shall meet promptly and attempt to select a third arbitrator. If the two appointed arbitrators are unable to agree on a third arbitrator within ten (10) business days after the second arbitrator is appointed, either the City or the Tribe may apply to the Superior Court of Clallam County for the selection of a third arbitrator. Once appointed, the three -arbitrator panel shall determine the specified controversy. Each party shall bear the cost of any arbitrator it appoints, and cine -half (1 /2) of the cost of appointing a third arbitrator and the third arbitrator's fee. Any arbitrator appointed under this provision must be an active member of the Washington State bar. The arbitration rules and procedures in Chapter 7.04 RCW shall govern the arbitration process, the Washington. State rules of civil procedure shall govern pre -hearing discovery to the extent not incompatible with the procedures set forth in Chapter 7.04 RCW, and the laws of evidence of the State of Washington shall govern the presentation of evidence at the arbitration hearing. An award or decision rendered by a majority of the arbitrators appointed under this Agreement shall be finding and binding on all parties to the proceeding, and judgment upon any award or decision rendered by the arbitrators may be entered in the Superior Court of Clallam County, 'Washington, and enforced in the same manner as any other judgment. Nothing in this Agreement shall be deemed or construed to confer on the arbitrator or arbitrators any authority, power, or right to alter, change, amend, modify, add to, or subtract from. any of the provisions of this Agreement, except to the extent that any part of this Agreement is determined to be contrary to applicable law. 15. Amendment. No changes or modifications to this Agreement shall be valid or binding upon the parties unless such change or modifications are mutually agreed to in writing and executed by the parties in the same manner and formality as the original Agreement by authorized representatives. 16. Severability. It is understood and agreed to by the parties hereto that if any part or provision of this Agreement, or its application to any person or circumstance, is held illegal or invalid, the remaining parts or provisions, or a„pplicatioa of the parts or provisions of the Agreement to other persons or circumstances, shall not be affected, and the rights and obligations of the parties shall be construed as if the Agreement did not contain the illegal or invalid part. Because the source of legal authority to grant, revolve, and suspend the police special commissions described in this Agreement is separate from and independent of the terms of this Agreement, the invalidity of all or a portion of this Agreement shall have no affect on the validity of such special commission, which shall remain in effect until suspended or revoked at the discretion of the parties' Police Chiefs or their designees. -9- 17. I tegration. This Agreement contains terms and conditions agreed upon by the parties. The parties agree that there are no other understandings, oral or otherwise, regarding the subject matter of this Agreement. 18. Notice. Any notice required or permitted to be given under this Agreement shall be deemed sufficient if given in writing and sent by registered or certified mail. City of Port Angeles notices shall be sent to: Chief of Police Port Angeles Police Department 321 East 5`h Street, P.O. Box 1150 Part Angeles, WA 98362 Lower Elwha Klallam Tribe notices shall be sent to: Chief of Police Lower Elwha Tribal. Police Department 2851 Lower Elwha Road Port Angeles, WA 98363 19. Term / Duration. Either party may, through its authorized officials, withdraw from this Agreement upon sixty (60) days written notice to the other party. Withdrawal from this Agreement by either party does not affect or diminish authority exercised prior to the effective date of such withdrawal. Withdrawal shall not relieve either party of its Agreement to insure without interruption or indemnify the other party as required herein .for liability or expense arising out of actions prior to the time of withdrawal or when revocation becomes effective. The Agreement shall commence upon execution by both parties, as signed and dated. below. The Agreement shall be effective for a period of five (5) years and shall be deemed renewed successively :for five (5) years at the end of each term or renewal, unless the party to be bound has earlier withdrawn or set forth its desire to have this Agreement terminate at its regular termination date. 20. Piling of the Agreement with County Auditor and/or Posting on Website. It is mutually agreed by the parties that this Agreement shall be filed with the Ciallam County Auditor after it is signed by both parties, or in lieu thereof, posted on the official website of each party. Recording costs shall be equally borne between the parties. 10- 21. Warranty. The signers to this Agreement warrant that they have the power and authority and are duly authorized by their respective City Council andlor Tribal Council to enter into this Agreement on behalf of the entity for whom they execute this Agreement in a representative capacity. CITY of PORT ANGELES LOWER ELWI-IA KLALLAM TRIBE Mayor, Dan Di Guilio Dated Attest: Janessa Hurd, City Clerk Approved as to form: William E. Bloor, City Attorney Tribal Chairperson, Frances G. Charles, or her designee Dated Approved as to form: Stephen H. Suagee, LEKT General Counsel GALegapa AGREEMENTS&CONrRACTS\2010 Agrmts&Contracts\LEKT.Interiocal Cooperative Law Enforcement.071610.doc -11- I PL. CITY OF ORt-T A--- W A 5 H I Iii G T D N, U. S. A. CITY COUNCIL MEMO .BATE: July 20, 2010 To: CITY COUNCIL FROM: WTLTfIAM E_ BLnnlz, CzTY ATToRrrEY Subject: REsmu-rION IN SuppoRT OF NGRTH OLYMPIC LmRARY SYSTEM (NOLS) BALLaf MEAsuRE PRnPosAL To LIFT THE LEVY LTD ON PROPERTY TAXES SUMMARY: The board of Directors of the North. Olympic Library System (NOLS) is placing a ballot measure before Clallam County voters on. August 17, 2010 to restore its 2010 regular property tax levy rate to $0.50 per $1.,000 of assessed property value, and has asked the City Council for its support. -Conisider adoption of the Resolution in support 6f the levy lid_ lift .Discussion: Attached for Council's consideration is aResolution in support ofthe North Olympic Library System levy lid lift. VOLS provides public library services to all residents of Clallarn County, including Port Angeles. Due to 2001 changes in State law, funding increases to NOLS from property tax revenues have been. limited to l% per annurn although the inflation rate has averaged 2.3% per annum. In addition, revenue received from timber harvests has decreased dramatically. Library revenues are no longer keeping pace with expenses. City staff received a suggestion that the City Council, may wish to consider adopting a resolution to support the North. Olympic Library System's ballot proposition to lift the levy lid on property taxes. The City Council must receive public comment before considering support of the North Olympic Library System ballot measure to lift the levy lid. Yvonne is providing a separate memo with information on the possible consequences to the City of NOLS's ballot proposal. WEB AI G-%EGADa hSEir1f151A'!HM®5.20iA1Govncil.LibiaryLvgLift ?es,070610,wpd • K-1 WASH ING TO N, CITY COUNCIL MEMO DATE: July 20, 2010 TO: CITU COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCE DIRECTOR SURJECT: INFORMATION REGARDING LIBRARY LEVY INCREASE • Summary: On. August 17, Clallam County voters will be asked to approve an increase in the North Olympic Library System (VOLS) levy rate. In the meantime, NOLS has asked the City Council to pass a resolution in support of the levy. Prior to Council taking any action, staff has provided the attached informational memo and is available to answer questions regarding how this may affect the City's future taxing authority. Recomrtiehdatirin: Information only. Background 1 Analysis: As you are aware, the North. Olympic Library System (NOLS) is asking voters next month to approve an increase in the Library's property tax levy rate. If approved, the current VOLS levy rate of 330 per $1,000 of assessed property value (AV) would increase to 50¢1$1,000 AV effective 2011..Asa junior taxing district, the 50¢!$1,000 AV limit is the maximum rate allowed for a library district under State law. There are general limitations as to the amount of taxes that can be levied on real property. Following are the 3 limitations according to State law: 1) 1% or Implicit Price Deflator (IPD), whichever is less Initiative 747, which was approved by voters in 2001, limits property tax increases in any one year to the lesser of the implicit price deflator (IPD) or 1 %. The IPD is a tool used to measure inflation. Prior to the adoption of I-747, the maximum property tax increase was fi% per year. 2) Maximum regular property tax rate of $10 per $1,000 ,AV for all taxing districts The total property tax rate for all taxing districts is $10 per $1,000 AV. This limit excludes special levies which are voted on by citizens and used to pay debt service on general obligation bonds. In 2010,.the total regular property tax allocation for Port. Angeles citizens is as follows: C11 K-2 State $2.14 County 1.14 • School District 2.39 Port .16 Library .33 Hospital .47 Pool District .15 City of Port Angeles 2.28 TOTAL $9.06 3) Maximum City property tax rate of $3.60 per $1,000 AV In addition to the $10 limit described above, the City of Port Angeles is also limited by State law to a maximum levy rate of $3.60 per $1,000 of assessed valuation. Of this amount, the library district is entitled to 50¢ per $1,000 AV, leaving a maximum of $3.10 available to the City. However, if the NOLS does not levy its full 50¢, then the City may assess the unused portion. Although it was not necessary for the City to utilize the Library's unused levy authority in 2010, this option would not be available for the City in the future if the Library levy is approved. These limits are important to be aware of not only in relation to the Library levy, but also need to be considered if the City moves toward establishing a separate fire district. Fire districts can levy up. to $1,50.per.$1;000 AV..For.cities that belong to. both a library. district and a fire:district,.and•if. those districts are levying their full amounts, the City would be limited to a maximum regular levy • of $1.60 per $1,000 AV. Please contact me if you have additional questions related to property taxes. • G:\GROUP\FINADMIN\LTRSMEMO\Library Levy information.doc K-3 0 RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, in support of the North Olympic Library System levy lid lift. WHEREAS, the North Olympic Library System Board of Trustees are asking voters for a levy lid lift that would authorize the Library District to restore its 2010 regular property tax levy rate to $0.50 per $1,000 of assessed property value for collection in 2011; and WHEREAS, the North Olympic Library System, a junior taxing district which receives no funding from Clallam County or the City of Port Angeles, provides public library service to all residents of Clallam County including all residents of the City of Port Angeles; and and WHEREAS, eighty-one pereent=ofthe Library's revenues consist ofpropertytaxes; and WHEREAS, the last time the Library asked the voters to increase its levy was in 1978; 0 WHEREAS, in 2001 Washington State law changed, limiting the Library's property tax budget increases to no more than 1% more than the previous year without a vote of the people, with the rate of inflation averaging 2.3%; and WHEREAS, shared revenue from timber harvests, which used to help the Library balance its budget, has decreased dramatically and is no longer a dependable source of income; and WHEREAS, in spite of planning, budgeting, and spending, the Library's revenues are no longer keeping up with expenses and without the Levy, the Library would have to reduce staffing hours of operation and materials; and 0 -1- K-4 NOW, THEREFORE, the City Council of the City of Port Angeles, hereby declares its support of the North Olympic Library System levy lid lift, and will forward a certified copy of this Resolution to the Citizens for Libraries for use in support of the Library levy campaign. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of July, 2010. ATTEST: MAYOR APPROVED AS TO FORM: • Janessa Hurd, City Clerk William E. Bloor, City Attorney • G:LL.EGABn ORDINANCES&RESOLUTIONS\RESOLUTIONS.2010\13.LbreryGdi@.060810.wpd (July 2, 2010) -2- K-5 From the Library Director ary is working hard to meet your needs, Your Libr especially during these difficult economic times. The annual children's Summer Leading Program "Be Creative @v our Library" was the most successful ever, with over 1,100 children participating system -wide. Programs and events included Valentine's Performing Pigs, Reptile Man Scott Peterson, and magician Jeff Evans, as well as many other special events across the County. The Friends of the Library generously support the Summer Reading Program, which encourages kids to read and build their reading skills with fun and interesting activities during the summer months. VOLS partnered with the Scquim and Port Angeles School Districts on two grant•fsmded "Supporting Student Success" projects to enhance the. Districts' social studies curricula with public library materials. NOLS librar- ians also provided training for teachers on the Library's collection of online. databases. The Library's volunteer progmin became a top priority in 2009, thanks to new Volunteer Ordinator Emily Sly, who worked closely with Branch Managers and Department Heads to assess needs, develop job descriptions and place 9 new volunteers by the end of the year, with more exciting growth to come in 201.0. In 2009 the Sequim Branch Library, which opened for business in 1982 and has not been remodeled since, was completely renovated, thanks in great part to a generous gift from the Friends of Sequim Library and a bequest from the estate of Helen Adams. After a 3 -month closure, the Library reopened to great fanfare with new paint, carpeting and lighting, new furniture and a mobile partition in the community meeting room to create extra seating or conference space as needed. A special area for teens and a reconfigured staff workroom also resulted' New exterior signage was installed and the Library was taken off its septic tank and connected to the City sewer system. From the Board of Trustees The North Olympic Library System is in the business of snaking connections. The Library connects the people of Clallam. County with the cultures of the world. It connects students with homework help. It connects 'job seekers with employment opportunities and employers with information to strengthen and grow their businesses. It connects lifelong learners with educational resources. It puts the latest books and movies and music into the hands - and minds - of eager readers, viewers and listeners. It links people. to online research, consumer, financial and other information that goes way beyond Google. And it connects community members with local resources, such as the United Way, arts organizations, and environmental agencies. Anyway you measure it, 2009 was a landmark year. Check-outs and renewals were up 7.9% over 2008. More than 4,000 people applied for new library cards. A total of 10,871 people attended library programs and events (over 34% more than 2008). The Library's website continued to expand its role as the. Library's "fifth branch," with an average of 5,1.00 visits each month. It's clear that the Library not only continues to address important community needs - it's very much a part of people's lives. The NOLS Board of Trustees meets on the fourth Thursday of each month, generally at Spm at the Port Angeles Library. We will also continue to hold Board meetings at each branch library at least once each year. Tire Board always welcomes your input and involvement in shaping the future direction of the Library. 'A�� �2 Don Zanon Chair, Library Board of Trustees Paula Barnes [ Library Director 360.417.8525 • Director@nols.org Making connections in 2 009 0 LA9""T ..��11,9�F`14f�lil'11JI � , l,i��tflfl� i 41, iA, i ' �tT�Y�6WIlke� A NOLS Board member Jim. Roberts and T-shirt slogan contest winner Susan Pennington of Sequim display Susan's winning slogan: "Libraries... expanding our world, enriching our lives." Librarian Mardell Lloyd offering one of the very popular "Computer Basics" classes at the Port Angeles Library. FISCAL YEAR 2009: JANUARY 1 - DECEMBER 31, 2009 1 2009 FINANCIAL REPORT OPERATING REVENUES Property taxes 2,632.,434 Timber receipts 238,1.40 Overdue fines and fees 48,166 Grants and donations 1.93,357 Miscellaneous 141,505 SUBTOTAL $3,253,602 OPERATING EXPENDITURES Salaries and benefits 2,1.56,340 Books and other library materials 340,886 Supplies and services 463,399 Machinery and equipment 86,773 SUBTOTAL $3,047,398 TRANSFERS AND ALLOCATIONS Port. Angeles capital fund 15,000 Reserve for economic uncertainty 191,204 SUBTOTAL $206,204 TOTAL EXPENDITURES, TRANSFERS AND ALLOCATIONS $3,253,602 CAPITAL AND SPECIAL FUNDS REVENUES Undesignated donations 1,401 Donations for nooks and other library tnacerials 3,473 Grants Clallam County water conservation grant 2,885 Gates Foundation grant for Clallam Bay computers 3,900 SUBTOTAL $11,,659 EXPENDITURES Sequim renovation and sewer project 351,280 Special projects (Children's summer reading lnogmm, furniture and equipment, etc-) 52,626 Books and other materials (including memorial danatiom) 3,31,0 SUBTOTAL $407,2.1,6 DONATIONS FROM FRIENDS OF THE LIBRARY GROUPS (included in grants and donations, listed above) NOLS is very grateful for the support of the Friends of the Library; Clallam Bay Friends of the Library ............................... $6,414 Children's programs, library furniture, bike rack Forks Friends of the Library .....................................$1,985 Children's programs, decorative bench Port Angeles Friends of the Library ...........................$1.1,821 Programs for children, teens and adults Friends of Sequim Library ....................................... $1.60,350 Renovation of Sequins Library, programs for children and adults 2009 LIBRARY USE & STATISTICS Check-outs and renewals Clallam Bay Branch Forks Branch Port Angeles Main Library Sequim Branch Outreach program Total check-outs Customer visits Clallam Bay Branch. Forks Branch Port Angeles Main Library Sequim Branch Total customer visits Reference questions answered Clallam Bay Branch Forks Branch Part Angeles Main Library Sequim Branch Total reference questions answered. Library programs/attendees Clallam Bay Branch Forks Branch Port Angeles Main Library Sequim Branch Total library programs/attendees Meeting room use/attendees Clallam Bay Branch Forks Branch Port Angeles Main. Library Sequim Branch Total meetings/attendees Staff in full-time equivalents (FTEs) 25,958 78,82.3 478,370 276,268 1.3,648 873,067 18,440 46,02.1. 238,836 1.08,382 411,679 874 1,271 6,870 2,611 11,626 58/970 96/2,12.8 242/4,426 4713,347 443110,871 26/229 61/619 390/7,306 216/2,463 703/1.0,61.7 43.72 Volunteers Individuals Volunteer hours worked. Card holders (people who have library cards) Holdings (Items - books, CDs, DVDs and other materials) Clallam Bay Branch Forks Branch Port Angeles Main Library Sequim Branch Online databases eBooks Magazine subscriptions (print) )Magazine subscriptions (electronic) Downloadable honks Total holdings Computers for public use Clallam Bay Branch. Forks Branch Port Angeles Main Library Sequim Branch Total computers for public use Computer use (in hours) Clallam. Bay Branch Forks Branch Port. Angeles Main Library Sequim Branch Total hours of computer use Online services Visits to VOLS website and catalog Holds placed online. Database searches 46 2,278 40,166 1.6,399 34,498 148,161 57,134 28 4,281 501 16 1,494 262,512. 6 13 43 20 82 2,001 8,007 40,974 10,644 61,626 562,1.24 1.32,1.45 44,435 Makomg connectomns II1 2001 i ` 1171 t �- R"Per Cattfng r, 1 emonstrati�n 4, _ f12-3 . t7 r -- Left to right: Young artist at Fcrrks Library; linking a young reader to books; Arts in Action presenter at Port Angeles Library. Kl�r" 1 N 0 L S NOR7 H ULYMYIC URRARY SYSIEM o ls. c re 9 Left to right: Youth Services Librarian Jennifer Knight with. Summer ,Reading Program winners; Senior Page Laura Kesey+-Farrell at the Ruileute Housing Fair in Forks; IT Senior Associate Paul Carter in the Library's server room. NOLS NORTH OLYMPIC SYSTEM b ou Your Library Mission The North Olympic Library System is a junior taxing district serving all of Clallam County, Washington. The North Olympic VOLS is primarily funded through property taxes, with a 2010 levy rate of 33¢ per $1,000 in assessed prop - Library System promotes erty valuation. The Library also receives funding from timber and forest products harvested on public and. the joy of reacting, power of private lands, as well as from fines, Fees and miscellaneous charges. It is governed by a 5 -member adminis- ideas and lifelong learning, trative Board of Trustees. Trustees are appointed at large by the Clallam County Commissioners for five - and provides all residents year terms. The system consists of the main. Library in Port Angeles and branches in Clallam Bay, Forks of Clallam County equal and Sequim, as well as outreach services for people who cannot travel to the Library and an array of web - access to a variety of based services at www.nols.org. The. Library offers a collection of more than 260,000 books, DVDs, CDs library resources. and other materials, as well as reference assistance, children's programs and much more. 2 i SQu111111 ' e--a� dy etre t I'urt. An els ,VLA 9 +t � �-4 -850U NORTH OLYMPIC LIBRARY SYSTEM Serving aH o1 kkka111 CN11)11♦ o www-nois.org 017 Lao� year Me kflaraTy gaved you 0 It would have cost the residents of Clallam County over $7 Win° °ons. to buy or rent all the library books, music and DVDs checked out, the audio books downloaded, and the Library meeting rooms used in 2009. Checked out/used Books 537,309 Audio CDs 63,071 Downloadable audio books 4,538 DVDs 143,556 Magazines 29,630 Video tape 78,140 Digital projector 136 Meeting room use (per hour) 703 Per item cost Total value $11.00 $5,910,399.00 $9.00 $567,639.00 $20.00 $92,760 $5.00 $717,780,00 $3.50 $103,705.00 $ 5.00 $390,700.00 $99.00 $13,464.00 $501.00 $35,150.00 $79831,597.00 9 A f111es are Iil►1th, bi41 ft's dt''al that ilo'11' 1Tlole than ever, the Ublcrtly is one oj"your (;RE.'1[ f,S 1 VALUES, DATE: July 20, 2010 TO: City Council GELES FROM: Brian S. Smith, Deputy Chief of Police SUBJECT: 2010 Grant Opportunity -Police Department Summary: The Bureau of Justice Assistance (BJA) has announced that the FY 2010 Edward Byrne Memorial Justice Grant (JAG) local solicitation is now available. The Port Angeles Police Department and the Clallam County Sheriff s Department have been identified as eligible for joint funding in the amount of $11,500.32. Application for the funds was made on June 30, 2010. Once the award is made and prior to submitting the award back to DOJ, governing body review --and public comment is required: • -The award must -include a statement that the City Council was afforded the opportunity to review the grant, and that the application was made public and that, to the extent of applicable law or established procedure, an opportunity to comment was provided to the community. Tonight's hearing is meant to comply with those particular grant requirements. Action (1) Open Public Hearing, (2) accept public comment, (3) close Public Hearing, and (4) provide direction to staff regarding grant application. The Edward Byrne Memorial Justice Assistance Grant Program (JAG) was established to streamline justice funding and allow eligible agencies to support a broad range of activities designed to control crime based on local needs and conditions. JAG blends the previous Byrne Formula and Local Law Enforcement Block Grant (LLEBG) Programs to provide agencies with the flexibility to prioritize and place justice funds where they are needed most. The Port Angeles Police Department has been deemed eligible for the $11,500.32 in a joint project with the Clallam County Sheriff's Office. Both agencies have previously identified the need to improve the quality and cost effectiveness of their firearms training programs. They have identified an electronic, computer based firearms training platform that, through a laptop and projector, produces realistic firearms training in a variety of settings. The Port Angeles Police Department and the Clallam County Sheriff s Department would make this "laser shot" firearms training platform available to all law enforcement agencies on the Peninsula. In examining the available technology, subject matter experts from both agencies have determined that this type of solid, realistic, and verifiable firearms training improves officers' performance when firing live rounds on the range and in actual use of force encounters. K-6 0 0 0 City g of Port Angeles Parks, Recreation & Beautification Commission Port Angeles, Washington May 20, 201.0 CALL TO ORDER - Chairperson Stratton called the regular meeting of the Port Angeles Parks, Recreation REGULAR MEETING: &. Beautification Commission to order at 6:00 p.m. in Vern Burton Meeting Room #3. ROLL CALL: Members Present: Chairperson. F. Stratton, Vice Chairperson E. Tschimperlc, Commissioner P. Pittis, C. Whidden, S. Ramsey, R. Merritt, Student Representatives K. Wise and C. Nelson. 111embers Absent: Commissioner J. Hordyk. Staff Present: Director G. Cutler, Deputy Director R. Bonine, Parks Superintendent C. Delikat, and Administrative Specialist I1 C. Kochanek. Audience: Councilmembers B. Nelson and P. Downie, and Tom Call is. All others present in the audience failed to sign the roster, Approval of Minutes . By consensus, the Board moved to accept the minutes oTthe April 1.5, 2010 April 1.5, 2010 Meeting: meeting. Items From Audience. Mone, Not On Agenda: Parks Maintenance With the use of PowerPoint slides, Parks Superintendent Delikat gave a Park Division Presentation: maintenance presentation. The presentation started with Delikat informing the Commissioners about his background and overview of the Park Division's staff and seasonals, which include 1.1 full time employees, and between 15 to 1.4 seasonals. He discussed the 2010 budget cuts made to his seasonal staff and how the cuts have affected the Park Division over the last year and a half. He commented that user groups have picked up some of the slack by helping out with the Park Sponsorship Program. and that the baseball user groups have been chalking their own fields. Delikat then went on to explain what the park staff maintains. lie stated that the crew takes care of 36 parks and facilities, which is approximately 363 acres. This includes 28 parks, 8 facilities, 9.5 miles of trail, 1.6 baseball and softball fields, 14 tennis and pickleball courts. maintenance of the William Shore Memorial Pool, 13 playgrounds, and numerous restrooms. He stated that he breaks down his crew into separate groups to maintain all of this area which also includes the beautification, turf, irrigation, janitorial, and recreation event support crew. He commented that he also has a cemetery maintenance staff and that all ofthe park crew focuses on the removal of graffiti and vandalism. Delikat then showed the Commissioners three graphs that breakdown by percentages what staff does in Parks, Facilities, and Ocean. View Cemetery. The importance of the graphs showed the consistency of maintenance that the staff does from year to year. The next section of the PowerPoint focused on all the neighborhood parks that the Park Division staff maintains. Delikat presented slides that included every park which listed all the amenities, maintenance, and past and present projects. Besides the neighborhood parks. Delikat talked about the Waterfront Trail, the City Pier and Ediz Hook floats, ballfield maintenance, tournaments. and the viewpoints. He then proceeded with the focus on the Facilities that the Park Division maintains. This included the Carnegie Library, Ocean View Cemetery, Senior Center,. Fine Arts Center, City Hall, Vern Burton, Atrium, William. Shore Memorial Pool, Civic Field, and The Gateway. Delikat then explained the beautification program which includes the maintenance of the hanging baskets, the planter bowls, the trMigiel Parks Maintenance downtown, street trees, all of the park planter beds, the Conrad Dyar Memorial Presentation: (Cont'd) Fountain, and the Park Division's greenhouse. Delikat showed a list of the user groups that he deals with and informed the Commissioners how tough it is to juggle everyone's needs. He then covered several of the budget issues that he is facing because the Park Division's budget funding comes out of the general fund. He reviewed upcoming projects for the 2010.budget that include Francis Street and Estuary Park improvements, fixing the City :Pier Fire Suppression System, and Civic Field improvements. He then presented additional graphs that showed the progress of the 2010 budgets for the Parks, Ocean View Cemetery, Facilities, Senior Center and the William Shore Memorial Pool. Ongoing discussions took place during the PowerPoint presentation. Student Representative Nelson asked Delikat if the Police patrol the skate park on a. regular basis, how often does the crew mow the fields, and what make the grass smell so bad at certain times. i I Delikat replied that the Police patrol the skate park on a regular basis. On the subject of Civic Field, he stated that the crew mows the field about three times per week and the smell is caused by the rotting of the rooted grass because of the poor drainage at. Civic Field. The Commissioners thanked Delikat for the great presentation. Civic Field Assessment During Delikat's PowerPoint presentation, he presented the Commissioners with an Report: update of the progress regarding the Civic Field Upgrades Facility Assessment. Delikat stated that he met with Bruce Dees & Associates numerous times at the Civic Field facility and discussed issues that will need to be addressed in the assessment. He informed the Commissioners that he should get a draft of the report to review next week and that he wilt look it over and give comments and feedback to Don Campbell, the project manager. He stated that after that process took place the final draft should. be finished by mid-June. Student Member Interest None Report: Current Budget Status Deputy Director Bonine updated the Commissioners on the budget status report. He Report: commented that in order to save time and money the Expenditure/Revenue Highlight. Report will replace the complete report and provided the Commissioners with a handout, He stated that upon request from any Commissioner or Student Representative member a complete report will be provided to them. Commissioner Pittis asked Deputy Director Bonine what the status was for Family Fun Days. Deputy Director Bonine stated that family Fun Days was still scheduled to go on. He informed the Commissioners that he is in the process of incorporating it into the Park. Sponsorship Program. Commissioner Pittis asked Deputy Director Bonine if he thinks they will get the same turn out like they have had in previous years if they do not have all the toys and booths. Deputy Director Bonine stated that he believes they will have the same turn out and that they may have the same number of toys and booths as in past years. Round Table Chairperson Stratton informed the Commissioners that if they have anything they Discussion/Commission would like to discuss at the meeting or with the City Council, the round table Member Comment: discussion would be the time to bring it up. is Commissioner Whidden stated that. Park Superintendent Delikat answered most of the questions he had but would like to know the status of the proposed dog pari atincoln Park. M Round Table Deputy Director Bonine replied that there are two Rotary Clubs and they are going in • Discussion/Commission conjunction with each other as a group effort and are planning a presentation to the Member Comment: (Cont'd) City Council on June 15, 2010. He informed the Commissioners that it will be stated in the City Council memo that staff does not support the proposal unless a group can be found to sponsor the maintenance of the dog park. A discussion took place as to the contract status of the William Shore Memorial Pool. Deputy Director's Report Deputy Director Bonine stated that he needs volunteers for two separate sub - and Late Additions: committees, one being the Budget sub -committee with three members and the other being the Parks Master Plan sub -committee with three members. Chairperson Stratton, Vice Chairperson Tschimperle, and Student Representative Nelson volunteered to be on the Budget sub -committee and Commissioner Whidden, Pittis and Student Representative Wise volunteered to be on the Parks Master Plan sub -committee. Adjournment: By consensus, the Board moved to adjourn at 7:45 p.m. Next Meeting: September 16, 2010 6:00 p.m. Vern Burton Meeting Room #3 • • M-3 PORT ANGELES FORWARD COMMITTEE Jack Pittis Memorial Conference Room in City Hall / Port Angeles, Washington Meeting Minutes for June 10, 2010 Mission Statement: To create a strong economically and culturally vibrant community that will enhance the lives of our citizens. CALL TO ORDER: Chair Kidd opened the meeting at 7:30 a.m. ROLL CALL: Members Present: Chair Cherie Kidd, Co -Chair Don Perry, Larry Morris, Linda Rotmark, Kaj Ahlburg, Mike Edwards, Greg Halberg, Christopher Riffle, Willie Nelson, and Sherry Curran for the Lower Elwha Klallam Tribe. Members Absent: George Schoenfeldt, Mike Chapman, Terry Weed, Terry Roth. Staff Present: Kent Myers, Nathan West, Scott Johns, Teresa Pierce. Others Present: Tim Boyle. Public Present: None. Approval of Minutes Co -Chair Perry made a motion to accept the May 2010 meeting minutes as presented. Motion seconded by Ahlburg. Motion carried unanimously. Economic Development /Downtown Port Angeles — Business Resource Survey Myers summarized the work completed over the last four months with the survey and prioritizing the results. A spreadsheet was presented listing the projects with their current status and progress made to date by the City. Myers reviewed the five items in his memo as items that PA Forward may want to focus on. Myers suggested adding another item that would find ways to assist Olympic National Park (ONP) with the Elwha Dam Removal & Restoration Project. Myers added that it is also important to create more attractions for winter visitors. Co -Chair Perry added that area transportation services need expansion with more options available for visitors year round. Perry added that Mike Edwards, with assistance from City Staff, did most of the work on this project. Perry wants the public to know what the City is doing with the items that survey participants stated were priorities. He stressed that is it is important to give this information back to those that participated in the survey. Edwards reviewed the process of gathering the information from the survey and tabulating the results and how the spreadsheet that will provide that feedback and response to the survey participants. Myers added that the information provided today is a work in progress and that other items could be added as necessary such as finding ways to bring more cruise ships to the area. Edwards would like to see members of PA Forward to take ownership of items on the list in the way of subcommittees, or small teams of two or three, to give attention to these areas. Chair Kidd paused to introduce the two new members of PA Forward. Greg Halberg is a local real estate appraiser, and stated that his interest in PA Forward is that he grew up here, moved away and then came AM O • is Port Angeles Forward Meeting Minutes • June 10, 2010 back, and he sees the great potential that the area has. Chris Riffle voiced similar motivations for joining the Committee as he also lived here, moved away and is now back in the community with his family. Riffle was practicing law in Omaha, Nebraska, and has joined a local law firm in Port Angeles. Riffle stated he wants to be part of a solution and be able to offer ideas and solutions back to the community. Discussion returned to forming subcommittees. Edwards suggested the subcommittees could be provided with individual survey results so that they could review those specific concerns identified. Myers added that the list is for discussion with the thought of selecting specific ones to work with. Rotmark commented on the buy local program that more information will be gathered as to what resources are available throughout the entire county. West added that the matrix should have a focus on collective progress being made by a broad range of community entities as most are working in partnership to ensure positive results. Feedback from the EDC, Chamber and others should be incorporated so that what is being accomplished is promoted. Kidd added that it is critical to work with ONP to promote the Elwha Dam Removal & Restoration Project, but ONP does not necessarily promote Port Angeles. Edwards suggested adding promotion of the Elwha Dam & Restoration Project into Column #2. Kidd stressed the importance of being prepared for the numerous media that will come to cover the project. Ahlburg suggested trying to integrate the Chamber into the effort. Nelson responded that the Chamber had the impression that the advertising would be done by ONP. Ahlburg offered that the. ONP-has said that their job is to educate the public about the project, but they are limited as to what kind of advertising they • can do. Myers added that ONP is working on the development of a professional marketing plan. Suggestion was made that PA Forward could act as a coordinating role to bring the groups together. Curran added that the Lower Elwha Klallam Tribe will be adding a communications manager to further promote the project. Perry added that he and Myers had met with a large group from Canada/Victoria to introduce them to the area and he will go over in July to be on a local radio station to further promote the project. Suggestion was made to have a group called the "Dam Ambassadors" to promote the project. It was determined to divide the effort into four sub -committees as follows: Buy Local Edwards as Chair, with members of West and Riffle. Tourism / ONP / Elwha Perry as Chair, with members of Nelson, Kidd, Halberg, Tetnowski, and Morris. Transportation Myers as Chair, with members Boyle, Nelson. Regulation / Business / Financing Rotmark as Chair, with members Riffle, Ahlburg, and West. Subcommittees will meet separately before the next PA Forward meeting. Request — Trim Trees behueen Red Lion and Front Street Johns reviewed Carol Boardman's request to trim the trees in this area. He has spoken with Boardman and • Page 2 of 4 M-5 Port Angeles Forward Meeting Minutes June 10, 2010 O also with a tree service. He detailed the type of vegetation in the area that ranges from alders to stump sprouts, salmon berry, and other vegetation that is well over 6 feet tall. The area is on a steep slope with past history of soil movement so permitting becomes an issue with environmental concerns and various permits being necessary. Public safety also becomes an issue if this causes a slide that impacts the Red Lion. The cut materials could not remain on the ground and would have to be removed, the area is steep and is not easy to access safely for cutting. All of this adds to the cost. Red Lion would insist on limiting the time and days of work could be done. The estimated cost is $7000 to $10,000 to do the work. Johns stressed the importance of keeping in mind that the trimming could create yet a bigger and larger project and a much more expensive cost later. Myers stated that there is no money in the City budget for this, but Council could allocate contingency money for the project. Johns detailed the process on how the trees and debris could be removed and the related extra expenses that could be possible depending on the method of removal. He stressed the importance of maintaining the under story to preserve the integrity of the bank. Kidd asked if volunteers could be used. West responded any work in the area should be done by professionals considering the steep slope and environmentally sensitive nature of the area. Additionally, liability would be a concern since the area is in the City's right of way. Co -Chair Perry moved to table discussion to next meeting. Motion seconded by Nelson. Motion carried unanimously. News Business Myers added that ONP Superintendent Karen Gustin confirmed that the Department of the Interior has committed to additional funding of $250,000 to "keep Hurricane Ridge Road open, however, there is a gap remaining of approximately $75,000. Ahlburg inquired about using County or City equipment for snow O removal. Myers responded that there are limitations on jurisdictions and availability of equipment. Discussion continued on whether to approach the County to see if they would approve funding towards the project. Halberg suggested seeking out area businesses that directly benefit from the Ridge Road being open to see if they would be willing to contribute and thought it would be possible to find 75 businesses or groups that could contribute $1000 each. Adjournment Meeting concluded at 8:43 a.m. Next Meeting Date: • Next regular meeting — July 8, 2010, at 7:30 a.m. in the Jack Pittis Conference Room, City Hall. Approved as presented on July 8, 2010. Cherie Kidd, Chair Teresa Pierce Executive Communications Coordinator Page 3 of 4 M-6 • • • NEW AND ON—GOING ACTION ITEMS DATE DESCRIPTION RESPONSISI,.F PARTY TARGET DEADLINE 2-9-06 Continue Discussions on Group On -Going March 2006 HousingI ;lobs Completed 3-13-2008 "2010'Theme Ado ted Group On -Goin 6-10-10 Business Resource Survey Various July 2010 April -May 2006 Sub -Committees Group Completed 5-11-06 2010 PA Forward 2011. Nathan West Nov -Dee 2010 February 2007 Work Plan Proposal Completed 2-8-07 COMPLETED ACTION ITEMS DA'Z'E DESCRIPTION RESPONSIBLE PARTY RESULT Letter to City Council, March 2006 Planning Commission Completed and County regarding Mark Madsen Southern Cross -Route April -May 2006 Strategic Planning Meetings Group Completed 5-11-06 with ,Tim I•Ia uewood February 2007 Make recommendation to City Completed 2-8-07 Council regarding Harbor Plan Group Determine PA Forward May 1.0, 2007 representative to Lodging Tax Group Completed 5-1.0-2007 Com miPee October 2007 Determination of PUD Group Completed 1.0-1.1-07 Representative October 2007 Gather input regarding Cross Group Completed 10-i 1-07 Route issue Give Recommendation to City December 2007 Council Regarding Cross -Town Group Completed Route January 2009 Host Business Resource Event 1 Subcommittee January 8, 2009 Council Chambers March 2009 AIA Team Grant Visit Group March 2009 Forward Recommendations to April 2009 City Council regarding CFP & Group April 9, 2009 Policy Issues Summer 2009 AIA Grant Final Report Roll Out Subcommittee October 2009 August 2009 2010.Census Bureau N. West November 2009 Presentation February 2010 Juan de Fuca. Statue Project N. West Recommendation to City Council May 2010 Complete Count. Census N. West May 2010 Committee Invited ONP to discuss May 2010 marketing plan for Elwha Dam K. Myers May 2010 Removal Project. M -7 ... r a o so- ❑ 2909 D 209 0 A1IERACaE-1111AI (NATER DEM D– SENWEPJSTORM SYSTEM MAINTENANCE «,+ LAST YEAR TO DATE IMM 2.61 � — MONTH FT YR. I THIS YEAR TO DATE [MG} 2A SEINER SYSTEM JETTED 620 5,88511 STORM DRAINS JETTED 290 3.110, fq. SYSTEM TV INSPECTED 990 2,598 a r RAINFALL a i H s W 2 I Z i J Kc LL 0 Ci Mm 0 Ci AVERAGE ELECTRICAL USE LAST YEAR TO DATE (M Kw 61.6100: (THIS YEAR TO DATE (M Kw _. 64.2113; TEMPERATURE 70 Lu 20 10 �• i� JAN FEB MAR APR MAY JUN JUL AUr SEP OCT NOV DEC ■ 11• 02010 1 Year Average PUBLIC WORKS & UTILITIES DEPARTMENT QUARTERLY REPORT �- — WATER ' Responded to 18 customer service requests Repaired 16 water service leaks Repaired 5 water main breaks; Assisted contracters as needed Replaced 9 water meters ' Performed required Deptartment of Health testing Repaired or replaced 1 fire hydrant Performed utility locates as requested Fire hydrant / water main flushing - 2,896,000 gallons Water loss due to leaks - 309,300 gallons _ WASTEWATER COLLECTION Assisted with video of 1000 feet of the industrial main line Set up new Milltronics sonic transducer at Pump Station 5; Removed barrierslflc ' Rebuilt pressure sewer main lids on Ediz Hook; Fixed impeller at Pump Station 3 Assisted with jetting root filled storm line from 3rd -5th on Liberty St. ' Installed new impeller (X-peller) at Pump Station 6 and new Wilo pump at PS 1 Rerouted sewer line at the landfill and assisted with many other jobs for project Cleaned 90% of Corp Yard catch basins and the wash rack ' Jetted sanitary sewer and stormwater lines WASTEWATER TREATMENT ' NPDES monthly discharge monitoring report submitted Worked with local dischargers on pretreatment issues Performed process control on secondary treatment system ' ` Completed monthly O & M on leachate collection and treatment systems Conducted CSO inspections in compliance with Pollution Prevention Plan Assisted with cleaning of storm water ponds at the landfill Submitted NPDES required Infiltration and Inflow Evaluation to Ecology Submitted NPDES required Waste Load Assessment report to Ecology Superintendent administered Process Control class at the Lincoln Center Mailed letter that explained new sewer permitting rates to prospective Minor Industrial Users of the plant and collection system 0 `Y � SOLID WASTE __ Accepted 28 tons of yard waste from City of Sequim curbside yard waste program Organics for Composting tons are up due to a wet spring and increased advertising Attended monthly Solid Waste Advisory Committee meeting Attended quarterly meeting with Waste Connections Attended Public Works & Utilities Safety meeting Attended Stormwater Pollution Prevention Training _ _ STREETS & PARKS Repaired asphalt and concrete utility cuts; Patched potholes citywide Replaced three of the downtown trees and installed tree guards; Cleaned Boat Launch ` Uncovered and restored access to catch basin on Valley St.; Entered data into CMMS ` Traffic control for various Street maintenance activities; 35 catch basins rebuilt Performed repairs on City Hall, Vern Burton, Senior Center, and Wm Shore Mem Pool Repaired sunken areas in all brick crosswalks on Front Street downtown Assisted with burials, ground maintenance, and equipment servicing at Cemetery Turf mowing & weed eating at parks & facilities; Applied fertilizer at various parks Citywide-mowedlgraded/graveled/groundleducted/swept/applied herbicide Spring turf renovation at Civic field; Pier float repair and installation; Irrigation repairs William Shore Memorial Pool shutdown; Seasonal layoffs and rehires; Concerts on Piei Working with McKinstry on City Hall HVAC improvements; Civic Field Assessment wort Waterfront trail maintenance; Got Conrad Dyar Memorial Fountain running Put up hanging baskets and planted triangles; Juan DeFuca Festival event assistance General sign, building, and key maintenance, and curb painting - citywide Dead animal control citywide; Adopt a Highway and illegal dump trash pick up Continued street name sign conversion to new retroreflectivity standards o Repaired trip and falls in downtown corridor in preparation for cruise ship arrival Cleaned ponds, labeled manholes, and built contaminated soils bin at Transfer Facility Installed plastic lane markings citywide; Painted red and yellow curb on Railroad Avenu Pruning in greenhouse/atrium/various parks; Prepared for Baseball Tournaments ` Monthly crew safety meetings; Tailgate safety meetings at job sites CPR / First Aid training; ditch and shoulder mowing citywide; catch basin inspections IP _. EQUME_NT SERVICES _ �� __ ENGINEERING _^� 1506 sent to Brim tractor for transmission oil seal repair & repaired mower head Updated Public Works permit forms Built trailer for deicing/water tank; fabricated custom edge blade for grader Permitting for City Pier Built safety shield for propane line on Corp Yard Generator set Comprehensive Water System Plan update Repaired No. 8 fire engine water pump; Repaired extensive electrical problem 580(' Elwha Dam removal mitigation Installed lift attachments for 3500 Ib. steel traffic plates; Dumpbed in Parks pickup Wastewater Treatment Plant support 1268.5 Total mechanic hours billed for 4/1/10 to 6/30/10 16th Street Sidewalk design and bidding Completed 366 job orders 2010 Pavement Overlays design and bidding LIGHT OPERATIONS ' Repaired 16 street lights ' Performed 13 service connections Performed 546 electrical inspections ' Completed 143 utility locates Completed general maintenance at Washington and Valley substations Stormwater Phase II program implementation Private Developments construction inspection Landfill Post Closure Plan support ` Laurel Street Substation construction Phase I CSO Project design Dry Creek Bridge / Discovery Trail design and bidding Subdivision Reviews Water Main Replacements design and bidding Dry Creek Water Association disconnections Civic Field Assessment work Transportation Request for Proposals (RFP) MUM 0 • • M-11 City of Port Angeles Recreation Division Activities 2nd Quarter 2010 April l —June 30 Vern Burton Center Main Hall Events Vern Burton Center Meeting Room Users • Kids After School Program • Retired Kiwanis • Pickleball • Port Angeles Fine Arts Center • Blood Drive • Harbor Works • Spring Break Kids Program • Recreation Staff • Airplanes 0 Parks Oversight Committee • Jazz Festival 0 Clallam County — Various Meetings & Workshops • Rocky Mt. Elk • Amalgamated Transit Union • Line Dance a Youth Athletics • NJROTC • Parks, Recreation & Beautification Commission • Play Zone • Juan de Fuca Festival of Arts • Clallam County Luncheon • Human Resources • Olympic Round -Up • Finance Department • Juan de Fuca Festival of the Arts • Paddlers • NRA Dinner • Peninsula Trails Coalition • Amsan Training • Olympic Roundup • Summer Camp a Engineering • Cheer • Future Builders • Jazz Festival • Rocky Mt. Elk • North Olympic Discovery Marathon • Cheer • Umpires • Port Angeles Swim Club • Health Screening • Planning • Amsan Port Angeles Fine Arts Center Port Angeles Senior & Community Center • Exhibition: Art Outside - 500 participants • 36 Educational Programs — 1,444 participants • Exhibition: Duncan McKeirnan - 127 participants • 36 Health Programs — 2,383 participants • Exhibition: Strait Art 2010 — 824 participants • 60 Social/Recreation Programs — 9,856 • Art Paths Portfolio — 1227 participants participants • Art Paths Education Program • Flea Market/Bazaar— 1200 participants Approximately 554 served • 90 & Better Birthday Bash — 110 participants • Event: Enter Stage Left, Poet Sally Albisoo • Elder Law Forum — 150 participants • Event: Enter Stage Left, Zorina Wolf • Volunteer Hours — 4,553 • Event: Enter Stage Left, Paul Chasman • Volunteers — 352 participants • Event: Enter Stage Left, Beaver Hill Follies • Total Current Memberships 1,513 • Event: Art in Bloom • Event: Portfolio Opening Reception • Event: Juan de Fuca Festival • Event: Art Outside Opening • Meetings: P. A. Arts Council, Strategic Planning Committee, Trustee Board, Friends Board, Staff • Outreach Programs: Jake juror for Sequim Arts, Jake & Barbara on KONP, Sequim Open Air Market • 152 individuals volunteered their time M-11 M-12 i 0 Special Event Programs Youth Family & Adult Programs • May Day Roundball Youth Basketball Tournament: 23 Teams • After School Program — 41 Kids Enrolled • Pitch, Hit, & Run Baseball Skills Competition: 24 Participants • Are -K Play Zone — Averaged 8 Per Week • Smoked Salmon Men's Softball Tournament: 15 Teams • Line Dance Lessons — Averaged 35 Per Class • Spring Break Program — 15 Enrolled • Kids Fishing Derby — 300 Registered • Summer Day Camp: Session I - 43 Kids • Cheerleading — 90 Registered City Pier Events Sorts Programs • Kayak Symposium • Pickle Ball 112 Participants • Earth Day • Spring Co -Ed Soccer 144 Participants • North Olympic Discovery Marathon 93 City; 51 Non - City Residents • Concerts on Pier • Softball — 296 Participants • Peninsula Men's Gospel Singers 237 City; 59 Non - City Residents • Volunteer Fest • Tennis — 116 Participants • Pooch & Papa Walk • Women's Basketball - 56 Participants 43 City; 13 Non - City Gateway Council Chamber Users' • Port Angeles Down Town Association • City Council Meetings • Mustang Car Show • Planning • Harbor of Hope Foursquare Church • Board of Adjustments • Port Angeles Farmers Market • Clallam County DUI Victims Panel • Clallam County Workshops • Clallam County Historical Society • City of Port Angeles Light Ops. • Retired Kiwanis • Jazz Festival • Olympic Round -Up • Juan de Fuca Festival of the Arts • Fire Department • Engineering • Soro timist Spelling B M-12 i 0 • • CITY OF PORT ANGELES -RECREATION DIVISION HOTEL/MOTEL GRANT REPORT SECOND QUARTER REPORT APRIL 1, 2010 - JUNE 30, 2010 Staff of the Port Angeles Recreation Division have been very busy during the second quarter of 2010 with recreational activities that have brought additional tourists to Port Angeles. In keeping with our goal to impact tourism through the promotion and hosting of recreational events, we respectfully submit our Second Quarter Report. We promoted and coordinated the MayDay basketball tournament, for boys' and girls' basketball teams, and attracted 23 teams, including 18 from out of town to participate. In June we hosted a men's softball tournament, and brought in 4 teams from out- of-town, including one from Victoria, British Columbia. 2nd Quarter Sports Events Date Event Total Out -Of -Town Teams Teams May 1-2 MayDay Roundball 23 18 (youth basketball) June 5-6 Smoked Salmon Invite 15 4 (men's slowpitch) In summary, these events that were hosted in Port Angeles during the Second Quarter of 2010 accounted for over 400 visitors spending the weekend in town. M-13 DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT_ BUILDING DIVISION MONTHLY PERMIT REPORT JUNE 2010 CATEGORY JAN. FEB. MAR. APR. MAY JUNE JULY AUG. 2010 YTD 2009 YTD RESIDENTIAL -NEW 4 MODULAR/MANUFACT. I ............................................................................................................................... ..................................................................................................................................................................................... Value $358,102 SINGLE FAMILY 1 1 2 6 ....................................................................................................................................... Value ........................................................... $165,643 ................................................................................................................ $147,132 1 $312,775 $1,260,171 MULTI -FAMILY 1...... .............................. .. ................................ ............................... ............................................................................................................................................................................................................. Value $1, 609, 627 $1,609,627 ACCESSORIES 3 1 4 1 9 14 .............................................................................................................................................................................................................................................................................................................. Value $64,224 $5,352 $58,980 $23,040 $151,596 $454,043 COMMERCIAL -NEW 1 1 RETAIL..................................................................1........................................................................................ .......... .......................................................................................................... ..................... Value $55,440 $55,440 $573,450 HOTEUMOTEL Value OFFICE .................................................................................................................................................................................................................................................................................................................... Value 1 $94,496 DRINKINGlDINING .................................................................................................................................................................................................................................................................................................................... Value AUTO/SERVICE t .................................................................................................................................................................................................................................................................................................................. Value $6,400 INDUSTRIAL .................................................................................................................................................................................................................................................................................................................... Value PUBLIC - NEW 2 SCHOOLS/HOSPS/GOVT ...................................................................................................................................................................... Value ................................................................................................................................... $39,776 H U RCH ES .................!;j Value RECREATION 2 .................................................................................................................................................................................................................................................................................................................. Value $50,000 REPAIR & ALT. 140 156 RESIDENTIAL 20 17 27 23 27 26 ......................................................................................................................................................................................................................................................................... Value $91,002 $78,957 $282,507 $102.320 $180,009 $180,898 $915,693 $1,448,079 COMMERCIAL8 15 18 15 12 14 82 55 .................................................................................................................................................................................................................................................................. Value $102,650 $117,651 $116,991 ............. $64,046 ............. $61,794 $369,826 $832,958 $5,444,904 PUBLIC 2 1 2 2 7 9 .................... Value ...................................................................................................................................................................................................... $359,500 $176,480 $91,250 $17,990 $645,220 $108,458 DEMOLITION !MOVE 3 4 7 Value $0 .............:................................................................................................. $2,000$2,000 $141,220 BUILDING TOTALS 249 253 BLDG PERMITS 31 35 50 39 51 43 0 0 ...................................... CONST. VALUE$193,652 ................................................................................................................................................................................................................................................................................................................... ........................................................................................................................................................................................................ $611,548 $805,845 $171,718 $2,150,792 $591,754 $0 SO . . . $4,525,309 $9,979,099 BLDG PERMITS FEE $4,780 $11,792 $ts,a54 $s,ozs 528,913 $12,524 $79,489 $132,291 C OF O'S ISSUED* 8 4 14 0 6 14 46 *Certificate of Occupancy (C of O) issued to new or relocated businesses. M-14 e e e OLYMPIC REGION CLEAN AIR AGENCY • 2940 B LIMITED LANE NW OLYMPIA WA 98502 Regular Meeting July 14, 2010 10:00 am Be courteous — Please silence all cell phones M-15 I. CALL TO ORDER II. APPROVAL OF AGENDA (Ask for any corrections, additions/omissions) III. APPROVAL OF MINUTES Minutes of Regular Meeting, June 9, 2010 IV. CONSENT AGENDA Expenditures and Disbursements approved for payment for the period June 4, 2010 — July 7, 2010: Warrants and wire transfers: 63002850 through 63002906 = $35,986.73 Payroll: 306160 through 306177 = $121,549.12 . V. PUBLIC COMMENT / PRESENTATION 1. City of Olympia — Beyond Green Fleet: Cleaning Olympia's Air VI. NEW BUSINESS 1. August and November Meeting Cancellation VII. UNFINISHED BUSINESS 1. Outdoor Burn Rule VIII. DIRECTOR'S REPORT 1. Compliance Update 2. ORCAA Permit Actions 3. Education and Outreach 4. Air Quality Summary 5. Finance/Administrative Update 6. Executive Director's Report IX. EXECUTIVE SESSION To discuss any matter suitable for Executive Session under RCW 42.30.110 • X. ADJOURN M-15 OLYMPIC REGION CLEAN AIR AGENCY 2940 B Limited Lane NW Olympia, Washington 98502 O BOARD OF DIRECTORS MEETING June 9, 2010 Members present: Clay Harwood, Pacific County (Chair) Craig Ottavelli, City of Olympia (Vice Chair) Cynthia Pratt, City of Lacey Dan Di Guilio, City of Port Angeles Art Starry, Thurston County Phil Johnson, Jefferson County Terry Willis, Grays Harbor County Mike Doherty, Clallam County Lynda Ring -Erickson, Mason County Members absent: Ecology: Sean Lundblad Legal Counsel: Fred Gentry of Bean, Gentry, Wheeler & Peternell Staff Present: Fran McNair, Executive Director; Robert Moody, Compliance Supervisor, Mark Goodin, Professional -Engineer; Dan Nelson, Public Information Officer; Lynn Harding, - . . Administrative Services Manager; Jimmy Werner, Senior Air Monitoring Technician; and Debbie Moody, Administrative Assistant O The meeting was called to order at 10:01 a.m. There were no additions or omissions to the Agenda. Starry moved approval of the Agenda. Pratt seconded the motion and it carried unanimously. Starry moved approval of the regular Minutes of May 12, 2010. Doherty seconded the motion and it carried by a majority of the Board. (Approved by Starry, Doherty, Di Guilio, and Harwood - Johnson and Pratt abstained due to absence from May meeting). Harwood noted the Consent Agenda consisted of Warrants and wire transfers 63002801 through 63002849 in the amount of $15,882.09; and Payroll 304592 through 304609 in the amount $121,770.95 for May 6, 2010 through June 3, 2010. Johnson moved approval of the Consent Agenda. Pratt seconded the motion and it carried unanimously. PUBLIC HEARING Fiscal Year 2011 Budget -Continued Harwood opened the public hearing at 10:07 am. McNair reminded the Board they had requested three items at the previous meeting. McNair stated she did send out two of the items prior to the meeting. The Board had requested more detail in regards to our health plan and a comparison with what other jurisdictions were doing. The third item was a breakdown on capital expenditures — it is included in the packet. McNair stated there have been no changes to the proposed budget. Doherty asked what the end result was with regards to the COLA discussion. McNair stated there had been question about the propose 2% tc►crease 2 in salaries last month. McNair noted Lynn Harding, Administrative Services Manager, did a comparison of •several jurisdictions. Our budget is balanced, McNair noted, and rather than call the increase a COLA we have just done a salary adjustment. Doherty asked if we will be using our reserves to pay for the increase. McNair stated that we do plan on dipping into the reserves. We have allocated $149,000 of our reserves for the fiscal year. We typically put in more reserves than we use. The reserves are used to cover some of our programs, such as Open Burning, which have no funding. Harding did note in our current fiscal year we are using investments to cover the deficit in our land clearing education fund. Doherty noted we aren't making as much in investments and it concerns him. He also noted we don't have the same rental income that we had. Doherty stated Clallam County did not award COLAs. Doherty noted he is concerned that staff is looking to raise assessments to keep the revenue coming to support the COLA in the future. Most counties are cutting costs and Doherty stated he is not comfortable supporting an increase. Pratt stated she didn't have a problem with this small adjustment. The city of Lacey did receive an adjustment and her concern is if you don't pay staff we have to worry about them moving on to other jobs. Harwood stated they didn't offer any COLAs this year either. He did note he wasn't opposed to an increase but wanted to be sure we can really afford the 2%. Johnson noted they have taken a 5% cut in previous years and there will be no salary adjustments this coming year. He did ask what the rental market is like currently. McNair stated the garage is rented as well as the downstairs portion of Catholic Community Services. We will have five individual offices for rent. The rents are reasonable, running from around $200 to $700 per month. We will be marketing the offices very soon. Johnson asked what the rental to mortgage is currently. Harding noted we more than cover our mortgage and we use the additional funds for improvements, utilities, etc. Johnson stated he was having a difficult time with this decision. He agrees with Pratt that we do not want to lose employees. McNair pointed out that staff is very fiscally responsible and this new budget is quite a bit less than last year's. Considering we can afford the increase and still end the year with a healthy reserve, McNair stated, it seems only right,to compensate our staff. Willis arrived at 10:15am – Harwood briefed heron the discussion at hand. Willis stated she would like to vote • against the 2% increase. Willis stated she did agree with McNair's argument for the increase, and knows staff does a great job. Willis noted when all is said and done, the economy really cannot afford any additional expenses. Willis explained in Grays Harbor County, neither the elected officials nor the exempt employees received any increase in 2010. Willis stated we need to curtail our spending and not approve an increase in salaries. Pratt stated she understands there are counties suffering, but she didn't feel we should put the onus on ORCAA if they have the money – just because our budgets aren't as robust as they should be. Lacey's budget is balanced and we are not laying people off, we gave our employees increases. We shouldn't put our frustrations with our municipalities on an organization that is functioning well with their budget. Doherty added, looking ahead—if we are getting less from the state, using some of the reserve, and decrease in rental income—the revenue doesn't appear sustainable. If we give an increase, how will the budget be sustained? We don't want to move forward and then lose employees due to budget problems and we certainly don't want to have to go back to our jurisdictions with higher assessments. Willis did add that Grays Harbor is doing ok, but it is because of the adjustments that were made. McNair noted our assessments are not overly high. McNair went over the other APCA's assessment charges. It is not our intent to raise the assessments. We agree our business revenues are changing. We don't base our decision on public monies. We base it on our permitting programs. Our permits and source funds are increasing – these are the indicators that we based our decision on. McNair did note we have hired a maintenance person (no benefits) to do odd jobs and maintenance for our building. It will save staff a lot of time and money – we won't have to go out to bid each time and he is on-call when we need him. Doherty noted it may be better to hire an independent contractor rather than an employee. McNair noted we considered it and felt this is a much more efficient way to get work done. • Ring -Erickson arrived at 10:26am – Harwood briefed her on the discussion at hand. Ring -Erickson wanted staff to know this has been the hardest and biggest mess she has faced as commissioner. By and large, M-17 3 Mason County has not given raises for the past 2 years. We have had to cut our at -will employees from 40 hours a week to 32 hours a week. Another concern I have, Pratt noted, is if we don't give staff the 2% adjustment now, down the road we are further behind and it'll be harder for us to approve a larger increase. Making up for an increase down the line could prove to be much more expensive. The proposed increase isn't that much, and if the Board is more comfortable we could lessen the increase to 1.5% or some other adjustment. Ottavelli arrived at 10:30am — Harwood briefed him on the current discussion. Ottavelli stated the city of Olympia is not approving any COLA this year. We do have a very generous benefits package that does help make up for not having salary increases. Di Guilio noted he is on the fence with this issue. He feels what they have done in Port Angeles is irrelevant to what is happening with this organization. The concern Di Guilio has is similar to Doherty — looking down the road, we want to make sure we have sufficient revenues to carry out the mission of the organization. Port Angeles will be taking a harder stance with regards to increases this year. If the organized labor can't agree to forego their increase, we will have to lay off employees. Di Guilio would rather see the organization be healthy 4 to 5 years out than give an increase at this point. O Starry stated Thurston County has also been cutting back and not giving increases — other than those that are part of bargaining units. Thurston County is doing cuts because we have too, there is no revenue. When you are in the budget process, Starry continued, you have to look at the revenue, look into the future and make a decision as to whether it looks dire or not. Are their inefficiencies that can be corrected, are there unfunded programs we can do without. Looking at ORCAA's budget, things appear pretty efficient. The budget for non - payroll expenditures are going down and it appears the things that are listed ought to be covered. If we have confidence for future revenue the small salary increase is reasonable. What we don't know about future rental income — and that is important. If we aren't.sure, this small sacrifice of no increase is probably what.we.should .. be doing. Ottavelli wanted clarification — he noted he has heard the phrases COLA and salary adjustment and would like is to know what the proposed increase really is. Ottavelli stated he would be interested in knowing what other organizations, of this size, are doing. Ottavelli noted he would be supportive of a COLA; however he would not be in favor of raises. McNair stated we originally had it in as a COLA and changed it at the Board's request. We then changed it to a salary adjustment. Ottavelli noted terminology is important. Harwood noted he didn't feel comfortable supporting the 2%, but would consider 1 — 1.5% adjustment. Ring -Erickson stated she would not vote for any increase. She noted she was willing to reconsider this discussion later in the year. Harwood -asked if there were anymore comments. Doherty noted technically we should close the hearing, asking if there is any public comment and then finish our discussion. Harwood asked if there were any public comments or further discussion on the budget as presented. Hearing none, Harwood closed the public hearing at 10:45am. Harwood opened the floor for discussion. Ottavelli noted we are looking at a difference of $34,107 under salaries. Harding noted there would also be a slight increase in the benefit line of the budget. Ottavelli agreed, noting we are also looking at a savings on benefits, resulting in a net change of approximately $24,000. We are looking at a $24,000 increase on a $2,000,000 budget. Retention of quality people is extremely important but we are looking at the greater context of the climate we are all involved in and the people whom we are responsible for setting their salaries who are wanting to see the treatment in the other organizations that we deal with. It is a difficult climate; however $24,000 in a $2,000,000 budget is not a significant amount. Ottavelli stated, before he could make a decision, he would like to hear a comment from the director as to whether there has been any scrutiny or public comment in the past — is this something that is generally looked at by the public or our constituents. Ottavelli noted he is not concerned about the $24,000, he is concerned about the message it sends to staff here at ORCAA as well as staff at the cities and counties. 40 M-18 4 McNair stated we post the budget – it has been posted since April. We have not received any comments at •all. In my time here, McNair stated, we have not had any comments on our budget. McNair noted there is much more scrutiny over a city or county budget than our small organization. Harding added in her seven years, we have yet to have public comment on our budget. Willis, noting the dollar amounts for the raise, listening to Ring -Erickson and thinking we really aren't out of the woods yet as far as businesses are concerned—it wouldn't take long for the $34,000 and a loss of revenue before we were up to the wages and benefits of one employee. Willis noted it would be better to spread the hurt now, than to let one employee go later. There is no loss of respect for the staff—we do not want to lose them. Johnson added we really can't compare our jurisdictions to ORCAA – however, overall he still believes it is best to hold off on the increase. Johnson also noted he was open to looking at the increase later in the year. Doherty noted, in closing, the cost of living is actually zero, and that is the basis we used for the employees back home. The source of our revenue is going down and they will continue to cut. Living off our reserves is not a good plan and have we even done a market study regarding the filling of the small offices. Doherty explained the rental income is still an issue. Pratt added perhaps we should consider another percentage if some of us are uncomfortable with 2%. We are only talking about a minimal amount between the two years. Cutting incentives for staff, there is always the potential of them leaving, which in turn there could be substantial ramifications. Other staff will have to fill in the gaps and perhaps they aren't as well trained in the areas they have to cover. Pratt stated she would propose a 1.5% COLA. Willis asked if there were any other corrections to the budget. Harwood said he didn't believe there were any other corrections and the Board was comfortable with the rest of the budget. Harwood called for a motion on the Fiscal Year 2011 Budget Doherty moved the Board adopt the budget as presented without awarding the 2% adjustment at this time. We •would authorize the finance committee to meet with staff in 5 months for reconsideration—with the caveat if we pass it with this motion there is a message of fiscal responsibility for a sustainable budget. Ring -Erickson seconded the motion. The motion carried with a vote of 6 to 3 (opposed: Pratt, Ottavelli and Starry). Willis stated she would prefer we look at the budget each quarter, rather than wait five months. It would be best to track it closely. Ottavelli wanted the Minutes to reflect the heartfelt discussion of the day. He noted staff should be aware of the confidence the Board has for staff and to know this action, in no way, reflects the appreciation we all have for the professionals we have working here, but is rather a response to the incredibly and unique economic times we are facing. The Board agreed with Ottavelli's statement. DIRECTOR'S REPORT McNair noted we have rented the garage space since our last meeting. We have a new lease for the Catholic Community Services and we have developed a brochure for the upstairs spaces. We will need to make some tenant improvements – including paint, flooring, lighting, and security. Doherty asked if we had an overall estimate for improvements aggregated. McNair went over the items in the budget. The total is approximately $20,000. Ottavelli, noting the PSE rebate asked if staff had been in contact with Thurston Energy, which is a new consortium helping business and residents to perform comprehensive audits. McNair noted we had not, but will contact them. Compliance Update •Robert Moody, Compliance Supervisor, we continue to get complaints regarding the odors at Silver Springs. We have also had a few complaints from odors at North Mason Fiber. We recently learned Waste M-19 5 Connections (owner of Silver Springs) has been redirecting some of the waste to North Mason Fiber. We also continue to hear from one person regarding Ocean Protein. The facility has not operated a lot yet this spring, they have made some improvements to their equipment and we hope complaints will be minimal when O they fire up full time. Willis asked if Ocean Protein is still recycling fine money back into their projects. McNair noted we have two outstanding fines and we will be meeting with their attorney this week. Willis noted she hopes we continue the practice of allowing them to use the money to fix the problem rather than collect the fines. Willis noted the business has been put in a precarious situation as to where they exist at, in the middle of housing. To fine them for something, but also to reinvest in them, they provide jobs to Grays Harbor and that is really important to us. R.Moody noted the Energy Facility Site Evaluation Council (EFSEC) in Grays Harbor is having a public meeting on their expansion. The meetings will occur in July. Willis asked what part ORCAA plays in this process. R.Moody stated we are concerned with the odor issues. EFSEC believes they have found the source of the odors, chlorine in the cooling tower, and they are addressing that issue. R.Moody stated we recently attended a PCHB hearing on an outdoor burn violation we issued. Heather Welch, of Gentry's office attended the hearing and did a fabulous job. McNair added staff did a great job testifying as well. Ring -Erickson, noting the compliance reports, stated there were several smoke complaints in Mason County May 14 — she requested additional information. R.Moody stated he wasn't aware of the cases, but would get the information. ORCAA Permit Actions Mark Goodin, Professional Engineer, briefly went over a few pending cases. We have received an application for Adage .and we have sent out a data request. We expect to. send out a preliminary.:determination shortly, which will be followed by a public comment period and likely a hearing. Simpson Timber is also proposing a biomass plant as well. Simpson's project will be a cogeneration facility, whereas they will use the biomass to generate electricity for their own facility, as well as the neighboring plywood plant. We have not yet received their permit application. The Department of Information Services (DIS) is the building that will house the large data center and is in need of emergency power generators. We have received additional information and are currently reviewing it. Goodin noted Grays Harbor Energy's (EFSEC) hearing is in regards to phase Il. Basically they are duplicating the power plant that is already operating, so they are basically doubling in size. Goodin agreed with R.Moody in that there have been many odor complaints. We are currently working on EFSEC's Air Operating Permit (AOP). Willis asked for clarification — the draft permit staff is currently working on will be their AOP. Goodin stated that was correct — this permit is for the existing plant. Goodin stated Silver Springs Organics has submitted a partial permit for a variety of changes that have taken place. PenPly sent in a permit for a temporary diesel boiler that has been approved and completed. The boiler was needed due to a fire at their plant. Ottavelli asked about the outstanding payment under the St.Peter's permit. It appears they were last invoiced in March. Debbie Moody, Administrative Assistant stated that was correct. Ottavelli asked what the policy is on the invoice. McNair noted we have a 30 day policy. Goodin noted it is a process and D.Moody handles all the billing and also deals with late payments and collection. D.Moody noted they have been notified of late penalties on the payment. Ottavelli noted late payment means they are out of compliance. McNair agreed. Di Guilio asked what a typical permit would cost. D.Moody noted on the low end, a spray booth for example, the starting fee would be $460. Goodin noted the larger projects begin around $1,300 and the large energy projects run into the thousands — so the range would be $300-$7000. Starry asked about the after -the -fact generators. Goodin stated they have been running over the base fee and have been charging hourly rates after a certain number of hours. McNair asked if the Board would be interested in seeing a breakdown of fees. Harwood thought we could work that into a future agenda item. Starry added it would be nice to see how penalties are assessed as well. 0 M-20 0 Education and Outreach • Dan Nelson, Public Information Officer, explained the statewide wood smoke campaign surrey has been slightly delayed. The wanted to be sure all the stakeholders were in agreement with the questions. There were some concerns and the changes are being made. The survey will likely begin next week. The communicators will begin planning focus groups to do the preliminary planning for the outreach for this campaign. Willis asked for clarification on the objective for the project. Nelson stated we are working toward a reduction in wood smoke in neighborhoods. Nelson explained there are some areas that really need the reduction due to non -attainment issues. Willis asked what other things do you do besides replacing noncertified with certified. Nelson noted the survey will focus on what is a driver for people to change their behaviors. Wood burning appliances can burn cleaning, if they are operated correctly. We are trying to educate and change the behavior of those individuals that burn, and burn incorrectly. Air Quality Summary Jimmy Werner, Senior Air Quality Technician stated we are currently operating our new portable ozone monitor at our Lacey Mountain View Elementary site. We have not had any ozone events to date, which is typical this time of year. Werner briefly went over the graphs in the Air Monitoring News. Werner noted Ecology is required to do an air monitoring network assessment every five years — this is a new requirement from EPA. We do not anticipate any changes in our network. Our network is used to determine burn bans in our jurisdiction. We will be moving the portable ozone monitor to Port Townsend in the near future, and from there Shelton. These sites have indicators of ozone levels that is close to the standard. Doherty noted it appears Cheeka Peak tests for SO2, and wondered if SeaGrant or other people with research money could use the data to show a contribution of pollution from China. Werner stated the data is available; the monitor is very sensitive and is measuring trace levels. -Doherty noted the.SeaGrant has quite a.bit,of research money and -if someone could put together the pieces perhaps we can have more money to help run the site along with • assisting in the research. Administrative Services Update Harding recently submitted annual renewal paperwork for our property insurance, through Enduris. Enduris provided us with market trends, which are strong. They monitor daily and they have stated we should see very little increase in rates. They have noted the commercial industry is at the beginning stages of a hard market, which is derived from a downturn in the financial markets in the depleted capital reserves of the insurance companies. The current budget is on target. Harding noted asbestos and burn permits continue to bring in funds. Harding wanted to remind the finance committee that we will be meeting prior to the July Board meeting. McNair noted we do have a study session following this meeting. The study session will cover our outdoor burning regulations. EXECUTIVE SESSION There were no items for Executive Session. ADJOURNMENT Prior to adjournment Ottavelli wanted to thank McNair for attending a recent West Olympia Business Association meeting and delivered a program presentation regarding ORCAA and what we do. We were very fortunate to have in attendance some large developers and representatives from Government Business Offices • Lessors Association as well as Master Builders. Ottavelli noted there appeared to be a great deal of interest. Ottavelli noted the City of Olympia will be attending our meeting in July to present their Green Fleet Program. M-21 Ottavelli added if any of the Board members want their staff to attend, or during the presentation hear something of interest, Olympia would be happy to make the presentations to the other jurisdictions. Doherty O asked if Olympia could provide brochures or other information. Di Guilio moved adjournment of the June 9 Board meeting. Johnson seconded the motion and it carried unanimously. The meeting adjourned at 11:55 pm. PRESENTED BY: Francea L. McNair, Executive Director APPROVED BY: APPROVED and SIGNED this day of 2010 B M-22 M -23 Inspections Completed Printed 7/12/2010 8:59:07 AM Between 6/3/2010 and 7/10/2010 Insp. Date Inspection Type File # Source Name Location i AD 06/03/2010 Driveby 1235 NORTH MASON FIBER CO INC BELFAIR 06/032010 Unannounced 426 MASON GENERAL HOSPITAL SHELTON 06/032010 Unannounced 443 OLYMPIC FABRICATION LLC SHELTON 06/032010 Driveby 171 QUALITY WOODWORKS LLC BELFAIR 06/11/2010 Unannounced 1235 NORTH MASON FIBER CO INC BELFAIR 06/162010 Source Test 191 SAFEWAY STORES - OLYMPIA/HARRIS OLYMPIA 06/172010 I Unannounced 500 SAFEWAY - TUMWATER 1!1503 • TUMWATER 06/172010 Unannounced 871 SHELL OIL - LACEY BLVD LACEY 06/172010 I Unannounced 874 MARTIN WAY SHELL OLYMPIA i 06/172010 Unannounced 150 CHAMBERS CENTER CHEVRON LACEY 06/172010 Unannounced 1141 MERIDIAN CORNER GAS & DELI OLYMPIA ( 06/222010 Unannounced 880' BLACK LAKE SHELL OLYMPIA 06/22/2010 Unannounced 546 HARD ROCK INC - BELFAIR BELFAIR 06222010 Unannounced 1008 HARBOR OLYMPIC LAND 5303 LLC OLYMPIA 06222010 Unannounced 1215 BELCO SHELTON MILL SHELTON ! 06242010 i Unannounced 1016 7 -ELEVEN 22478 - SIMPSON AVE ' ABERDEEN I 06242010 Unannounced 694 LAKESIDE INDUSTRIES - ABERDEEN ABERDEEN i 06/30/2010 i Unannounced 185 AERO CONTROLS INC SHELTON I 06/302010 E Announced 218 CITY OF SHELTON - WWTP SHELTON 07/082010 Announced 1235 NORTH MASON FIBER CO INC BELFAIR I FLM j 06/112010 AOP Full Compliance Evaluation 244 SIERRA PACIFIC INDUSTRIES - COGEN ABERDEEN I GG 06/072010 Source Test 244 SIERRA PACIFIC INDUSTRIES - COGEN ABERDEEN 06/112010 AOP Full Compliance Evaluation 244 SIERRA PACIFIC INDUSTRIES - COGEN ABERDEEN ` 06222010 Source Test 1200 ATLAS SHELTON SHELTON i 06232010 Announced 341 PORT ANGELES HARDWOOD LLC PORT ANGELES i 06232010 Announced 194 INTERFOR PACIFIC INC - PORT ANGEL PORT ANGELES 07/082010 Announced 1235 NORTH MASON FIBER CO INC BELFAIR • Pale 1 of 3 M -23 Insp. Date Inspection Type File # Source Name Location O MS 06/08/2010 Driveby 1200 ATLAS SHELTON SHELTON 06/08/2010 Driveby 926 ACE PAVING - SHELTON SHELTON 06/08/2010 Unannounced I10 MILES SAND & GRAVEL - SHELTON FA SHELTON 06/10/2010 Driveby 694 LAKESIDE INDUSTRIES - ABERDEEN ABERDEEN 06/11/2010 Unannounced 1183 AM CLEANERS LACEY 06/112010 Announced 849 INTERNATIONAL PAPER LACEY 06212010 Announced 190 TARGET CORPORATION LACEY 0622/2010 Source Test 1200 ATLAS SHELTON SHELTON 06242010 Driveby 337 OCEAN PROTEIN LLC HOQUTAM 06242010 Driveby 1092 GRAYS HARBOR PAPER LP HOQUTAM 06/24/2010 Unannounced 694 LAKESIDE INDUSTRIES - ABERDEEN ABERDEEN 06252010 Announced 291 LAKESIDE INDUSTRIES - DURGIN RD OLYMPIA 06292010 Driveby 1200 ATLAS SHELTON SHELTON 07/062010 Unannounced 375 GLACIER NORTHWEST TUMWATER 07/072010 Unannounced 698 ROLLING THUNDER CUSTOMS LONG BEACH 07/072010 Driveby 325 NASELLE ROCK AND ASPHALT CO NASELLE 07/092010 Driveby 1186 GRAYS HARBOR ENERGY LLC ELMA RC 06/042010 NOC 1245 PUGET SOUND SURFACERS #G-6 06/22/2010 Unannounced 547 MILES SAND AND GRAVEL - SHINE PIT PORT LUDLOW 06222010 Driveby 927 ACE PAVING - PORT LUDLOW PORT LUDLOW 0622/2010 Unannounced 1182 KRISTINES PORT LUDLOW 06232010 Announced 194 INTERFOR PACIFIC INC - PORT ANGEL PORT ANGELES 06232010 Announced 341 PORT ANGELES HARDWOOD LLC PORT ANGELES 06242010 Driveby 194 INTERFOR PACIFIC INC - PORT ANGEL PORT ANGELES 06252010 Driveby 194 INTERFOR PACIFIC INC - PORT ANGEL PORT ANGELES 06/252010 Unannounced 514 RAINSHADOW ROASTING COMPANY SEQUIM 06/282010 Driveby 832 BURNT MOUNTAIN STORE Sappho 06/282010 Driveby 194 INTERFOR PACIFIC INC - PORT ANGEL PORT ANGELES 06292010 Driveby 116 EVERGREEN FIBRE INC PORT ANGELES 06292010 Driveby 1245 PUGET SOUND SURFACERS #G-6 06292010 Driveby 194 INTERFOR PACIFIC INC - PORT ANGEL PORT ANGELES Pale 2 of 3 M-24 • Insp. Date Inspection Type File # Source Name Location Unannounced 07/08/2010 Announced 617 KOSEC FUNERAL HOME PORT TOWNSEND COSTCO GASOLINE #639 - WASHINGTO SEQUIM 07/08/2010 Driveby 669 MASTER CLEANERS PORT TOWNSEND Announced RTM NORTH MASON FIBER CO INC BELFAIR 06/07/2010 Source Test 244 SIERRA PACIFIC INDUSTRIES - COGEN ABERDEEN 06/11/2010 AOP Full Compliance Evaluation 244 SIERRA PACIFIC INDUSTRIES - COGEN ABERDEEN 06/21/2010 Unannounced 344 LAKESIDE INDUSTRIES - OLD HWY 99 OLYMPIA SS 06/08/2010 Announced 767 SILVER SPRINGS ORGANICS LLC RAINIER 06/10/2010 Unannounced 254 QUALITY FOOD CENTERS #841 FUEL S SEQUIM 06/10/2010 Unannounced 305 COSTCO GASOLINE #639 - WASHINGTO SEQUIM 06/232010 Announced .767 SILVER SPRINGS ORGANICS LLC RAINIER 07/08/2010 Announced 1235 NORTH MASON FIBER CO INC BELFAIR • • Page 3 of 3 M -25 Asbestos Permit Status Report Monday, July 12, 2010 Page 1 of 1 M-26 e Completion Date Actual Permit # Staff Recd Address City Status Completion 09ASB002881 RTM 12/9/2009 Capitol Campus Olympia 1st quarter 2 if 12/31/2010 09ASB002886 RTM 12/17/2009 See attached List Olympia 1st quarter 0 ft 12/31/2010 10ASB002908 MS 1/19/2010 2321 West Dayton Airport Rd Shelton Annual permit. Quantities to be reported 12/31/2010 10ASB002978 AD 4/1/2010 Buildings 71, 82,168 and 171 Indian Island Need NEW survey. Current survey not N 10ASB002988 AD 4/13/2010 504 - 15th Avenue SW Olympia This will be a selective demo 7/30/2010 10ASB003000 AD 4/26/2010 2300 Evergreen Park Drive Olympia First amendment 5/12/10 - change of star 7!7/2010 10ASB003016 SS 5/14/2010 413 Lilly Road Olympia 05/18/10 New start date 05/19/10 - Emer 10ASB003036 AD 6/9/2010 - 711 Sleater Kinney Road SE Lacey 9/30/2010 10ASB003041 MS 6/11/2010 3737 N. Shelton Springs Road Shelton 6/24/10 - on hold kle 7/31/2010 10ASB003052 AD 6/28/2010 431 Sawtooth Road Port Angeles 7/18/2010 10ASB003053 AD 6/30/2010 50 Bushcreek Road Elma 7/6/2010 10ASB003054 AD 7/1/2010 1621 Camp Discovery Road QUilcene Demo: 10DEM002696 7/12/2010 10ASB003055 MS 7/1/2010 412 Water Street Port Townsend 7/16/2010 10ASB003056 AD 7/1/2010 2700 Evergreen Parkway NW Olympia May need emergency on this project. Kle 7/23/2010 10ASB003057 MS 7/2/2010 112 West Scott Street Aberdeen 7/14/2010 10ASB003058 RC 7/6/2010 21 E. Cedar Street Port Ludlow RC: Applicant must provide receipt for as 7/11/2010 10ASB003059 AD 473 Dietz Rd Qullcene survey and check for $30 received 6/22/1 10ASB003060 RC 7/6/2010 2313 E Pioneer Rd Port Angeles RC: Ms. Porter got lab results - only silve 8/31/2010 10ASB003061 SS 7/7/2010 313 18th Avenue SE Olympia 7/20/2010 Monday, July 12, 2010 Page 1 of 1 M-26 e • Complaint Report for period from 6/3/2010 to 7/10/2010 Date Source City Recd Forma Oncall Online Smoke Odor Open Fir Dust Woodstov Other Referred to: 07/02/2010 Debbie Iness, Turstee etal Olympia MS ❑ Referred to: AD 06/03/2010 Tom Budsberg Tenino SS ❑— ❑ 06/07/2010 NORTH MASON FIBER CO INC BELFAIR RTM ❑ ❑. ❑ ❑ ❑ ❑ ❑ ❑ 06/08/2010 George Roberts Yelm AD ❑ ❑. ❑ 66 ❑ ❑ ❑ ❑ 06/08/2010 NORTH MASON FIBER CO INC BELFAIR AD ❑ ❑ ❑ ❑ 2 ❑ ❑ ❑ 06/10/2010 Donald & Patricia Graves ' Olympia AD ❑ ❑ ❑ a ❑ ❑ ❑ ❑ 06/10/2010 Dungeness Heights Water Systems Sequim AD ❑ ❑ ❑ ❑ ❑ ® ❑ ❑ Inc. 06/11/2010 2 B's Development - Charles Rainier AD ❑ ❑ ❑ ❑ ❑ ❑. ❑ ❑ Althauser 06/17/2010 Dave Hall Rainier AD ❑ ❑ ❑ ❑ ❑ W ❑ ❑ 06/17/2010 Donald Edmiston Shelton AD ❑ ❑ ❑ R) ❑ ❑) ❑ ❑ 06/17/2010 Marvin & Glynda Warren Malone AD ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/22/2010 Philip & Jessica Lawson Lacey SS ❑ ❑ ❑ 2 Rj ❑ ❑ ❑ 06/23/2010 Elva Jean Papiez Olympia AD ❑ ❑ ❑ RJ ❑ ❑ ❑ ❑ 06/24/2010 Donald Olsen Olympia SS ❑ ❑ ❑ . ❑ ❑ ❑ ❑ 06/24/2010 Unknown Tumwater AD ❑ ❑ ❑ ❑ ❑ R] ❑ ❑ 06/24/2010 Unknown double A -frame house Lacey AD ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/26/2010 Clifford & Nancy Moen Olympia DJM ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/28/2010 Kevin Jones Lacey AD ❑ ❑ ❑ R1 ❑ ❑ ❑ ❑ 06/28/2010 Nga Lam Lacey AD ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/30/2010 NORTH MASON FIBER CO INC BELFAIR SS ❑ [1 ❑ ❑ R] ❑ ❑ ❑ 07/01/2010 Kelly and Robert Maurer Tenino AD ❑ ❑ ❑ W 66 ❑ ❑ ❑ 07/01/2010 Robert Carver Olympia AD ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 07/02/2010 NORTH MASON FIBER CO INC BELFAIR AD ❑ ❑ ❑ ❑ Rj ❑ ❑ ❑ 07/04/2010 Johnnie Woody Shelton AD ❑ ❑ ❑ R] ❑ ❑ ❑ ❑ 07/05/2010 Gary Tuller Olympia AD ❑ ❑ ❑ © R] R] ❑ ❑ 07/06/2010 NORTH MASON FIBER CO INC BELFAIR AD ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 6r^..=..r�.^.a.Q"T._4rS_."_""'�^�:�:.^".:..•�...T.�.dR�'�.-�nTTr_a_.. '_' ... �.-.�.`'T:' .-.. .0 Monday, Jule 12, 2010 M - 2 age 1 of Date Source City Rec'd Forma Oncall Online Smoke Odor Open Fir Dust Woodstov Other 07/07/2010 Andrew O'Connor Chinook AD Li U Li V `� Li Li U 07/07/2010 NORTH MASON FIBER CO INC BELFAIR SS ❑ ❑• ❑ ❑ a ❑ ❑ ❑ 07/07/2010 NORTH MASON FIBER CO INC BELFAIR AD ❑ ❑ ❑ ❑ ❑ ❑ ❑ 07/08/2010 Earleen Johnson Olympia AD ❑ ❑ ❑ ❑ a ❑ ❑ a 07/08/2010 NORTH MASON FIBER CO INC BELFAIR AD ❑ ❑ ❑ ❑ a ❑ ❑ ❑ 07/08/2010 Unknown RTM ❑ ❑ ❑ a ❑ ❑ ❑ ❑ 07/09/2010 NORTH MASON FIBER CO INC BELFAIR AD ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 07/10/2010 Michael Rhubright Olympia AD ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑ Referred to: GDL 06/24/2010 OCEAN PROTEIN LLC HOQUTAM KLE `� 06/24/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 06/29/2010 ADAGE MASON LLC SHELTON SS ❑ ❑ ❑ ❑ a ❑ a ❑ Referred to: MM 06/29/2010 OCEAN PROTEIN LLC HOQUTAM GDL Li Ej Li M 0 Li Referred to: MS 06/04/2010 Louie _ _ _ South Bend MS J--❑ ❑ ❑`--❑ _ 06/04/2010 Sandra and Alex Schenkar Lacey MS ❑ ❑ ❑ a ❑ a ❑ ❑ 06/06/2010 Tamra Gunderson Raymond MS ❑ ❑ ❑ a ❑ ❑ ❑ ❑ 06/11/2010 Mike Lane Montesano MS ❑ .❑ ❑ ❑ ❑ ❑ ❑ ❑ demo without a permit 06/11/2010 Unknown Elma MS ❑ ❑ ❑ a a ❑ ❑ ❑ 06/14/2010 Greg Pelland - Pelland Enterprises Puyallup MS ❑ ❑ ❑ © ❑ ❑ ❑ ❑ 06/14/2010 TBD Elma MS ❑ ❑ ❑ 0 ❑ ❑ ❑ 06/16/2010 Colleen Vaughn Raymond MS ❑ ❑ ❑ a ❑ ® ❑ ❑ 06/17/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ a ❑ ❑ ❑ 06/17/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ a ❑ ❑. ❑ 06/18/2010 H and K Auto - Kevin Chen ABERDEEN MS ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/18/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ a ❑ ❑ ❑ 06/21/2010 Bernard McPhillips Rainier MS ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ land clearing without a permit 06/21/2010 Dennis Peterson Olympia SS ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/21/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ a ❑ ❑ ❑ 06/23/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 06/23/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ a ❑ ❑ ❑ - 2 age 2 oj4 8•londay, July 12, 2010 ® - e o i Date Source City Rec'd Forma Oncall Online Smoke Odor Open Fir Dust Woodstov. Other 06/23/2010 OCEAN PROTEIN LLC HOQUTAM GDL 06/23/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ Rj ❑ ❑ ❑ 06/23/2010 OCEAN PROTEIN LLC HOQUTAM DJM ❑ ❑ ❑ ❑ © ❑ ❑ ❑ j 06/23/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ 2 ❑ ❑ ❑ 06/23/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ 2 ❑ ❑ ❑ 06/24/2010 Deanne Johnston - Franzen Brothers Olympia RTM ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Roofing Co 06/24/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ 06/24/2010 OCEAN PROTEIN LLC HOQUTAM DJM ❑ ❑ ❑ ❑ 9 ❑ ❑ ❑ 06/26/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ M ❑ ❑ ❑ 06/26/2010 OCEAN PROTEIN LLC HOQUTAM AD ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/27/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ • ❑ ❑ ❑ ❑d ❑ ❑ ❑ i 06/28/2010 Angove Partnership Centralia SS ❑ ❑ ❑ W ❑ ❑ ❑d ❑ 06/28/2010 ATLAS SHELTON SHELTON FLM ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑ I 06/28/2010 Michael and Dawn Knutter Tenino MS ❑ ❑ ❑ RJ ❑d ❑ ❑ ❑ I 06/28/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ 9 ❑ ❑ ❑ 06/29/2010 ATLAS SHELTON SHELTON FLM El❑ ❑ © El ❑ ® El 06/29/2010 Jason Olsen Shelton MS ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/30/2010 OCEAN PROTEIN LLC HOQUTAM GDL ❑ ❑ ❑ ❑ ❑d ❑ ❑ ❑ 07/01/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ ❑�/ ❑ ❑ ❑ 07/02/2010 Donna Roush Tenino MS ❑ ❑ ❑ Ga ❑ ❑ ❑ ❑ 07/05/2010 Jackie Cable Raymond MS ❑ U ❑ 0 ❑ ❑ ❑ ❑ 07/05/2010 Wayne Grayland MS ❑ ❑ ❑ a ❑ ❑ ❑ ❑ 07/06/2010 Bud and Delores Williams Rochester AD ❑ ❑ ❑ M ❑ ❑ ❑ ❑ 07/06/2010 Jim Burnham Yelm SS ❑ ❑ ❑ R 2 ❑ ❑ ❑ 07/06/2010 OCEAN PROTEIN LLC HOQUTAM MS ❑ ❑ ❑ ❑ ❑ 07/09/2010 TBD Elma MS ❑ ❑ ❑ ❑ ❑ ❑ ` ❑ ❑ Referred to: RC 06/25/2010 Ted Peterson - renter, Carol Port Angeles RC ` Shoemake - owner 06/28/2010 James L and Barbara J Porter Port Angeles MS ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ demo without a permit 06/29/2010 Leslie N. Graham Forks RC ❑ ❑ ❑ a ❑ . ® ❑ ❑ 07/02/2010 LINCOLN INDUSTRIAL CORP INC Port Angeles MS ❑ ❑ ❑ ❑ ❑ ❑ n ❑ 07/04/2010 Roger and Judy Cemper Brinnon MS ❑ ❑ ❑ RJ ❑ ❑ ❑ ❑ Moll July nge 3 of 4 Date Source City Recd Forma Oncall Online Smoke Odor Open Fir Dust Woodstov Other 07/09/2010 TOWNSEND BAY MARINE PORT TOWNSEND JTK Li Li Li U Li U ./ 07/09/2010 TOWNSEND BAY MARINE PORT TOWNSEND JTK ❑ ❑ ❑ ❑ ❑ ❑ Sa ❑ Referred to: RTM 06/04/2010 NUTRIOM LLC LACEY AD �— ��-❑——��� 07/08/2010 Earleen Johnson Olympia RTM ❑ ❑ ❑ ❑ © ❑ ❑❑ 07/08/2010 Hunter Tree Farms RTM ❑ ❑ ❑ ® ® 0 ❑ ❑ 07/08/2010 JerryAldrich Shelton RTM ❑ ❑ ❑ ❑ ❑ 0 ❑ ❑ 07/08/2010 SILVER SPRINGS ORGANICS LLC RAINIER RTM ❑ ❑ ❑ ❑ Sa ❑ ❑ ❑ Referred to: SS 06/07/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS 06/07/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 06/08/2010 SILVER SPRINGS ORGANICS LLC RAINIER DJM ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ 06/08/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ 9 ❑ ❑ ❑ 06/08/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 06/08/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ ❑✓ ❑ ❑ ❑ 06/09/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ R] ❑ ❑ ❑ 06/14/2010 Dave Coots Lacey SS ❑ ❑ ❑ © ❑ ❑ ❑ ❑ 06/16/2010 Miguel Joaquin Belfair SS ❑ ❑ © 0 ❑ ❑ ❑ ❑ 06/17/2010 James Stevens Shelton SS ❑ ❑ ❑ ❑] 9 ❑ ❑ ❑ 06/21/2010 R C McConkey Tumwater SS ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ 06/21/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 06/22/2010 Robert Cameron Olympia SS ❑ ❑ ❑ ❑ ❑ 9 ❑ ❑ 06/23/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ 0 ❑ ❑ ❑ 06/24/2010 SILVER SPRINGS ORGANICS LLC RAINIER SS ❑ ❑ ❑ ❑ © ❑ ❑ ❑ 06/25/2010 Wesley & Colleen Morrisette Olympia SS ❑ ❑ ❑ 0 R ❑ ❑ ❑ 06/28/2010 R C McConkey Tumwater SS El E30 . RJ F-1 El El El 06/29/2010 No name given Lacey KLE ❑ ❑ ❑ ❑ ❑� ❑ ❑ ❑ toxic materiial 07/01/2010 Kelly Felix Olympia SS ❑ ❑ ❑ 2 ❑ ❑ ❑ ❑ 07/01/2010 Ricky Bryant Tumwater SS ❑ ❑ ❑ a a ❑ ❑ 07/01/2010 Sharon Cohen Lacey SS ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑ 07/02/2010 Maureen Needrow Olympia SS ❑ ❑ ❑ 0 ❑ ❑ ❑ ❑ 07/06/2010 Dorthy Courneya Yelm SS ❑ ❑ ❑ © ❑ ❑ ❑ ❑ 07/06/2010 unknown SS ❑ ❑ ❑ Fill ❑ 0 ❑ ❑ M - 3@age 4 of4 Monday, Ju1y 12, 2010 Demolition Permit Status Report ., Permit# Recd Staff Address City Status Asb Survey Asb Permit# 09DEM002417 6/1912009 All 65th and Sandridge Road Long Beach Pacific Fa #1 training burn. Mike K ASS 09DEM002440 7/2212009 AD 2620 Simpson Avenue Hoquiam Case on hold until May and June of 2 ❑ ASB 09DEMO02466 9116/2009 AD 4830 pacific Avenue se #12 Lacey Asbestos abatement completed 1012 ❑ ASB 09DEM002483 10/9/2009 SS 3748 8011h Ave SE Olympia ASB 09DEM002486 10/13/2009 AD 2112 S Capital Way 6 Olympia 10/13/09 All called owner. She will ❑ ASB 09DEM002490 10/14/2009 AD 940 Pine Street Shelton 10123109 Asbestos and demo permit ® ASB 09DFM002513 11116/2009 SS 292 Oyster Nouse Road Sequim - 11/16/09 - On hold until we get a star - ® ASB 09DEM002517 1112012009 M5 3152 SR 109 Copalls Beach No asbestos survey; no contractor. ® ASB 09DEM002529 121812009 SS 341 Verner Avenue Port Ludlow 12115109 - recelved payment. $35.00 ❑ ASB 09DEMOO2540 12130/2009 SS 6210 Prather Road SW Centralia ❑ ASB 1.GDEM002545 1111/2010 SS 324 Bramley Lane NE Olympia Customer sent in pictures of bam. K ❑ ASB 1 DDEMOD2552 1/2212010 SS 2802 Pacific Avenue Olympla ® ASB 1 ODE M002553 1/2912010 SS 716 Wilson Street Olympia ® ASB 1 ODEM002574 2/24/2010 RTM 7802 Diagonal Road, N.E. Olympia ASS 1 ODEM002590 31912010 SS 3232-3236 18th Ave Se Olympia 661151'10 not approved yet. ® ASS 10DEMD02595 3/16/2010 RC 326 Wildwood Lane Sequim Owner provided letter than CCFD#3 i ® ASH 1ODEMD02603 3122/2010 16822 Sorbus Ct Yelm commerc"sal property (rental) - theywi ❑ ASB 1ODEM002605 312212010 MS 310 4th Long Beach This is an old garage that has fallen ❑ ASB 10DEM002606 3123/2010 AD 100 NE Bear creek Dewatto Rd Belfair Waiting for proof of asbestos remova 21 ASB 10DEM002607 3/24/2010 AD 6407 Sandridge Rd Long Beach 03/25/10 AD talked to Diane. Need f ® ASB 10DEM002609 3/29/2010 AD 633 Camp Hayden Road Port Angeles ® ASB I ODEM002611 3/30/2010 MS 1581 134th Lane Long Beach RC: recd phone call on 5120110 from ❑ ASB IODEM002617 412/2010 AD building 71, 82, 83,168 and 188. Indian isiand ® 10ASBOO297B Monday, July 12, 2010 Page 1 of 3 M-31 Permit# Rec'd Staff Address City Status Asb Survey Asb Permit* 100EM002619 41212010 AD 1612 N Bethel Olympia 412110 - will be bringing in photos of ❑ ASB ' 10DEM002620 4/5/2010 SS 50415th Avenue SW Olympia ❑ ASS 100EM002622 41512010 AD 5645 Old Hwy 410 SW Olympia Waiting b1c got OORD permit, but a ASS 10DEM002623 ' 402010 AD 2920 93rd Ave SW Olympia waiting on asbestos permit and remo ® ASS k f 10DEM002629 4/2012010 AD S Lincoln Street & E 8th Street - NWCS fort Angeles 0412.0110 Surrey from 2007. Request © ASB i 10DEM002630 4/2112010 AD 4040 Lindsay Hill Rd Quilcene Wailing on proof of asbestos remova❑ ASB 10DEM002531 4/21/2010 AD 125 E 3rd Street Fort Angeles ® ASB 10DEM002634 4/22/2010 SS 500 North Custer Street Aberdeen Parts of the equipment are being salv ® ASS f 10DEM002635 4/22/2010 MS 718 S. Satsop Street Montesano ASB 10DEM002637 4/26/2010 SS 3388 US Highway 101 Hequiam Asbestos being removed alter demo. ® ASS 10DEM002639 4130/2010 IVIS 2518 70thth Avenue Drive SW Tumwater 0 ASB 10DEM002641 41301 010 MS 1110 NE Iris Street Ilwaco MS - approved permit? ASS 10DEM002646 5/612010 SS 205 Warren Aberdeen ❑ ASB 100EM002647 5/15/2010 MS 10210th Avenue Long Seaoh © ASB JI 10DEM002651 5/17/2010 RC 467 John Jacobs Road Port Angeles This case was referred to ORCAA b AS6 l 14DEM002654 5119/2010 AD 4237 Waldrick Rd SE Olympia AD walting for survey ® ASB f 10DEM002657 5/24/2010 MS 503 N. Sequim, West of Sequim 5/25110 - on hold pending survey, sit ® ASB 10DEM002659 5/2412010 SS 300 block Columbia Street NW Olympia Customer will be calling in contractor AS9 10DEM002661 5125/2010 MS 304 West Bay Dr Otympia 0 ASB 10DEM002667 611/2010 RC 73 Everett Road' Port Angeles RC: Pending Training Fire permit ap 0 ASB 10DEM002668 _ 6/1/2010 AD 1240 E. Johns Prairie Road Shelton Q ASS E10DEM002671 6/2/2010 AD 39/7 Park Drive Olympa waiting for survey ASB 10DEM002672 6/212310 AD 201 - 41stAvenue NE. Olympia waiting for survey Q ASB 4 1ODFMOO2673 6/4/2010 SS 1900 College Street SE Lacey ContractorTBD. ® ASB 10DEM002677 6/912010 AD Lake Aberdeen - Caretaker Building Aberdeen ❑ ASB Monday, July 12, 2010 0 Page 2 of 3 M-32 • e Permit# Rec'd Staff Address City Status Asb Survey Asb Permit# 10DEM002678 6/9/2010 AD _ 361 S Bay Way Pcrt Ludlow 21 ASB 10DEM002679 6/11/2010 MS 2820 S. Laurel Street Port Angeles ASB 10DEM002680 6/112010 AD 473 Dietz Drive Qullcene Waiting for survey. NEED signature 10ASB003059 10DEM002681 6/142010 RTM 5835 Athens Beach Road Olympia ASB 10DEM002683 6/16/2010 RTM Tullis & Oak Street NE Olympia ❑ ASB 10DEM002684 6/17/2010 MS 405 Cleveland Street Hoquiam © ASB 10DEM002686 6/22/2010 RTM 1214 7th Ave SW Olympia ASB 10DEM002687 6/22/2010 AD 1212 State Avenue NE Olympia ASB 10DEM002688 6222010 RC 229 Monroe Street Port Townsend RC: pending return call from applica ASB 10DEM002689 6/23/2010 RC 81019th Street Port Townsend Faxed to Rita. Kle 0 ASB 10DEM002690 6/232010 AD 353 Chickadee Lane Sequim 0623/10 AD has pictures. Suspect t 0 ASB 10DEM002692' 6/28/2010 AD 731 Adams Street Westport 0 ASB 10DEM002693 629/2010 AD 7645 Normandy Street SE Olympia 06130/10 Waiting on asbestos cwmpl © ASB 10DEM002694 6/30/2010 SS 19225 Elderberry Street SW Rochester ❑ ASB 10DEM002695 6/30/2010 SS 625 Black Lake Boulevard, 11th Floor Olympia Two phases in the mall. Asbestos su ❑ ASB 10DEM002696 7/12010 AD 1621 Camp Discovery Road Quilcene ❑ 10ASB003054 10DEM002697 7/2/2010 MS 451 John Jacobs Road Port Angeles vacation home so residential is appro ASB 10DEM002698 72/2010 RC 21 E. Cedar Street Port Ludlow RC: must provide receipt for proper © 10ASB003058 10DEM002699 7/6/2010 AD 3017 Sumner Hoqutam ❑ ASB Monday, July 12, 2010 Page 3 of 3 M-33 NOV Monthly Report For the period 6/3/2010 to 7/10/2010 NOV # Name Issued City Regulation(s) NOV Penalty Amount Amount Penalty by Issued Assessed Suspended Paid Issued 2877 PACIFIC GRO LLC JTK PACIFIC 4.3 (G) Failure to implement measures 09/22/2009 $1,000.00 $1,000.00 01/29/2010 fugitive dust in source operatic 8.5 (a) Failure to operate reasonably a technology to minimize emissi bearing gases 2944 SEA MARINE 2946 INTERFOR PACIFIC INC - PORT ANGELES DIVISION 2956 SILVER SPRINGS ORGANICS LLC 2957 SILVER SPRINGS ORGANICS LLC 2961 SILVER SPRINGS ORGANICS LLC 2962 HANSEN 2964 SILVER SPRINGS ORGANICS LLC 2972 CAMERON 2973 CAMERON 0 RC JEFFERSON 06/04/2010 JEFFERSON RC CLALLAM 8.7 (a) Failure to report excess emissit 06/29/2010 JTK THURSTON Silver Springs Conditio must have odor management p 02/26/2010 $1,300.00 $1,300.00 05/11/2010 6.1.8 Conditions in Approval of Ord Enforceable; failure to comply JTK THURSTON 6.1.8 Conditions in Approval of Ord 02/26/2010 $1,200.00 $1,200.00 05/11/2010 Enforceable; failure to comply Silver Springs Conditio feedstocks must be mixed with upon arrival SS THURSTON 6.1.8 Conditions in Approval of Ord 03/25/2010 $4,500.00 $4,500.00 05/11/2010 Enforceable; failure to comply Silver springs Conditio all composting shall be perforr aerated piles AD THURSTON 6.3.2(a) (asbestos) No asbestos permit aquired fro 03/25/2010 $500.00 $300.00 $200.00 05/25/2010 prior to abatement SS THURSTON 8.5(c) Odor emissions interferes unre 03/30/2010 $700.00 06/22/2010 person's use and enjoyment of SS THURSTON 6.2(a)(1) Open fire containing prohibiter 07/07/2010 SS THURSTON 6.3.2(a) (demo) No demolition permit aquired : 07/07/2010 prior to demolition Totals: $17,200.00 $300.00 $16,200.00 M-34 e � e • • • 4d' \.,30ItCAA��' Current ORCAA Land Clearing Burn Permit FireDistrict Expiration # Legal Desc Bum Site Address City Last Name CompanyName Phone 19111.Cx:: �'-=IIC'.£':�-:tel^ �C.R.^.�.:.:.w.:S._S:�S!tX'.Y[!'Sti:9.N-_^.,^....1".S�^.�.w"�A.WCL.�"^'s'^"m¢'f�LTLRZ"P?8S':1z:'vL"1.^..:51 :Y:F.2'w•.27iu:�':.'fiC �.�n.....-....a..�-Ts• ��.�"3f..^3.7�'e'.L.++r...+..+.wn...ns.:L f:��.Lt �:.�S^-�.5.'Y::'i:Tt1 8/7/2010 3148 500 Oak Meadows Road McCleary Bolster (360) 4954509 ::s�aa:�:=:::::_�•:•t,.,--:cr.:.»nc.P..aaua�c^-�.,;�-a-=n*Lz:.^.vracranuru�s�r•-rs.•�sxRc.. Elma Fire Department 7/14/2010 3022 Sec25 T18R06W �-�nr�.:.sa.a�•u�:�•rs'�e:�aa.-...rs••,•,: 36 Stamper Road _..•••••-�-�-r.�•c:c:a•_esc��^t::�:.:ac�aes:�vnr_c:... Elma Gransden ac�a� -� (360) 204-2090 7/30/2010 3147 Garden Hili Road & Pine Elma Iversen (360) 239-4422 Street GHFD #2, Montesano/C.P. 7/28/2010 3145 Sec04 T17R07W 238 Camp Creek Road i Montesano Potter (360) 580-3859 Brdy McCleary Fire Department 7/28/2010 3146 107 E. Mox Chehalis Road- McCleary Hardy TFD #1, Rochester 7/14/2010 3144 17125 Maon Road SW Rochester McKay DJ Blakes (360) 791-3004 Construction TFD #11, Littlerock 7/14/2010 3140 11800 Littlerock Road Olympia Turner BSSC Turner (360) 701-8233 Construction TFD #13, Griffin 7/14/2010 3139 8528 44th Ave NW Olympia HillHill Excavating —6-60"')-4-61-2213 7/14/2010 3143 Sec18 T19R02W 7400 Steamboat Island Olympia Perkins 4125 Dent Road SW . (360) 480-4420 Roaed NW ,..:�:�._..S^:.TJ3Y*SiIAJ.:^^�XIITJ:SC.:elm Heinz (253) 906-3.�.5�.::CC-.^2E".-�..^'f�:T'JO:.Tl.�<'.,,.'C.•. ..._... ... ._ TFD #17, Bald Hills 7/14/2010 2922 20440 Se Neat Road Y868 7/14/2010 2.927 Sec14 T16R02e 14527 Mountain Vista Yelm Keefer Homeowner (360) 894-0242 Drive SE �ar.•:tmramr_�r7c;c;.�.:.•c.-+^.r_c:�m�+��er:...-�:acc; ��icr.-•.— -----?eve-mss. �.r.R.W�--- _ rarr.--r.�ati*rrrc-rr+c:_ ss�aa_a .s:�-z�_ �.....a--.a- a::as.•va TFD #2, Yelm 7/14/2010 3138 Vail Cutoff or Russian Hill Rainier Bloom Rainier General (360) 400-0740 Rd Development a:mem-�:;'t��a.•iz�:.��.c�:sa�s:::crcxc:�-sacr�u;cc: -v.•m . iav!r:..a..ara::a.�.�ras,,,,r's:�r•.rua�uv�-r�..:.ra:-r..r��r.�-.. ss..axrr-_+-.saa�.r• _r..scxs..=aa TFD #3, Lacey 7/14/2010 3149 9028 80th Lane Se Olympia Dilworth DDC Construction (360) 352-7163 7/14/2010 3137 9116 Fox Ridge Lane SE Olympia Roswell (360) 264-7178 7/14/2010 3063 8911 80th Lane SE Olympia Mugartegui (360) 357-6204 :,.�.•`.'t���.^_i•4y^13F•:=...L�C^.5� a�"+m^��••�CP¢.S.•KSS]JAl�C�C�-•Tl:P 9CL�T...s�_^_`�HIZSiaL1RCT.l�GI �'��^'T...C3..�c0eT-cs�fP06•«.JC'Z'G�^•fa-•.ww...1..�j.-�-.Z...--....+w—.:�� "aCT•4 �T^�'v�?u'�f TFD #8, South Bay 7/14/2010 3136 Sec30 T19R01 W 4841 Lemon Rd Olympia Willie OSG Dozing (360) 705-4319 Monday, July 12, 2010 .M - 35 OLYMPIC REGION CLEAN AIR AGENCY 2940-B Limited Lane NW, Olympia WA 98502-6503 Consent Agenda to Board of Directors Meeting WARRANTS ISSUED & SUBMITTED FOR THE PERIOD June 4, 2010 through July 7, 2010 e Fund. Warrant #'s: Scheduled Payment Date: IssueAmount 6471 Debt Service on Office Bldg. June 4 $10,943.76 ORCAA started 63002850 - 63002861 June 11 $1,790.54 issuing their own warrants 63002862 June 15 $761.38 October 2007. Auto - Mo. Wire Transfer T.C. Accounting Charge $201.00 63002863 - 63002884 June 21 $16,400.73 63002885 June 18 $186.44 63002886-63002903 June 30 $5,168.88 306160 - 306177 Payroll $92,883.55 O 5272, 5278, 5282 Benefits $28,665.57 63002904 - 63002906 July 2 $534.00 Total Expenditures This Period. $3.57,535.85 Included with Consent Agenda for Monthly Board of Directors Meeting. JOURNAL -VL S 7n/2010 M-36 Olympic Region Clean Air Agency Cbeck Register For the period From Tun 1, 2010 to Jul 7, 2010 Filter Criteria includes: Report order is by Date. Check # Date Pavee Amount Wire Transfer 6/4110 Thurston Co. Treasurer's 10,943.76 63002850 6111110 Argus Pacific Inc. 300.00 63002851 611 lli0 AT & T Mobility 95.48 63002852 6111110 Association of Washington Cities 95.00 63002853 6111110 Daily World 31.00 63002854 6111110 Department of Information Services 75.86 63002855 6111110 Fine Line Technical Services, Inc. 240.00 63002856 6/11/10 Matrix Telecom, Inc. 57.79 63002857 6111110 Pacific Disposal 29.00 63002858 6/11110 Peninsula Daily News 164.96 63902859 6/11/10 Puget Sound Energy 382.55 63002860 6/i II10 R.M. Young Company 226.90 63002861 6111110 Thurston County Sheriffs Office 92.00 63002862 6/15/10 Costco Wholesale 761.38 63002885 6118110 City of Olympia 186.44 63002863 6121110 Sean Gentry Wheeler & Petern01, P'LLC 2,740.00 1 63002864 6121/10 Bank of America 1,457.48 63092865 6121/10 Capital Business Machines 137.84 63002866 6/21110 City of Olympia 720.14 63002867 5/21/10 Ccmcast Cable Cc m., Ino. 505.09 63002868 6121110 Dan DiGuilio 150.00 63002869 6121/10 Howard Doherty 1.50.00 63002870 6121110 Department of Printing 535.27 63002871 612.1110 WA State Department of Ecology 8,085.73 13002872 6121110 Lynda !Zing Erickson 42.00 63002973 612!/.10 Firestone Store 45.89. 63002874 60-1110 Grays Harbor Co. Sheriffs Department 69.00 63002875 6!21110 Lynn Hardin � y g - . a city Cash 80.88 63002876 6/21/€0 Phil Johnson 125.00 63002877 6121110 Labor & Industrios 1,061.00 63002878 6121/10 Mason County Sheriffs Dept. 41.00 63002879 6121110 Mountain Mist•. Water 63-04 i 63002880 6121110 Sa.felite/Glaspro 231.65 63002881 6121/10 Stephanie Sears 22.43 63002882 6121110 Sunrise Pest Management, Inc. 64.29 i 63002883 6121110 James Werner 31.00 1 63002884 6121110 Terry Willis 42.00 63002886 6130110 Bank of America 856-50 63002887 6/30110 Comcast Cable Com., Inc. 146,53 63002888 6130110 CompUSA 779.82 63002889 6130110 Dex Media West LLC 84.30 63002890 6130110 State of Washington -GA 135.63 63002891 6/30110 Clay Harwood 61.00 63002892 6{317110 IKON Office Solutions 14.84 63042893 6130110 Mason County Sheriffs Dept. 63.00 ' 63002894 6130110 Olympic Telephone 119.35 63002895 6139110 Pacific Disposal 29.00 63002896 6130110 Pioneer Fire & Security 94.00 63002897 6/30/10 PUD 41 of ClalIam County 89.93 63002998 6130110 Scott -Marin, inc. 24,40 63002899 6130110 Spokane /Regional Clean Air Agency 371.00 63002900 6130110 Tags Awards & Specialties 208-86 63002901 6130110 Veiixon Wireless, Bellevue 459.72 ! 63002902 6130li0 Washington Organic kecycIingCounci1 1,600.00 63002903 6130110 lames Werner 31.00 Wire Transfer 6130110 Thurston Co. Financial Services 201.00 306160-306177 6130110 Payroll & Benefits 121,549.12 63002904 712/10 Capacity Provisioning Inc. 35.00 63002905 712110 CPI, Ventures LLC 299.00 63002906 712110 Wiilapa Community Dev. Assn. 200.00 Total 157,535.85 71712010 at 12:10 PSN i M - 3 1 Page: i NSR Pending Report July Industrial/Commercial Air Permits (Pending and Fina! Permits for period from 5/7/2010 - 6!712010) 7/16/2010 7456 CORPORATION ACTI (ANGELES COMPOSITE TECHNOLOGIES INC) ADAGE MASON LLC AGP - PORT OF GRAYS HARBOR TERMINAL 2 AM CLEANERS AQUATIC CO ARMOR COATINGS BELCO SHELTON MILL BELFAIR CLEANERS . BURNT MOUNTAIN STORE CENTURY CLEANERS CITY OF ABERDEEN - WWTP CITY OF LONG BEACH CITY OF SEQUIM, DEPT. OF PUBLIC WORKS - WWTP CITY OF SHELTON - WWTP CITY OF YELM - WWTP 0 ROCHESTER PORT ANGELES AOP SHELTON NOC ABERDEEN N0C LACEY YELM SEQUIM SHELTON BELFAIR SAPPHO OLYMPIA ABERDEEN LONG BEACH .+��i±lll►� �4Cl=11111111111ltfLl YELM NOC AQP NOC NOC NOC NOC NOC NOG NOG 210I0 NOG NOC install spray booth GG 09116109 Response from County - looking into the issues with SEPA and permits 06/17110 10NOC742 install 2 spray booths GDL 03/13/10 03/13/10 Draft In Progress 10NOC748 install 60 mw net woody biomass GDL 04/01/10 Data Request 04/30/10 electric power plant Incomplete Appi 10NOC762 JTK 05/05/10 10NOC760 install dry cleaning machine JTK 06/11/10 Data Request 06/16/10 Incomplete Appi 10AOP726 renew air operating permit GG 01/08/10 03/25/10 Draft in Progress 09NOC703 after the fact truck bed lining JTK 09108109 09/10/09 PD Issued 10/13/09 operation Fees Due 09NOC683 after the fact planer mill GDL 06/18/09 Data Request 07/18/09 Incomplete Appl 08NOC650 After the fact dry cleaning machine GDL 12/15/08 01/21109 Draft in Progress 10NOC739 install gas dispensing facility JTK 03/04/10 Data Request 05/11/10 Incomplete Appl 10NOC761 after the face dry cleaner installation JTK 06/15/10 Draft Under Review 07/09110 1ONOC745 after the fact 500 kW emergency GDL 03/27/10 03/27/10 Draft in Progress generator 09NOC715 install a diesel -fired backup GG 11/10/09 Data Request 06/02/10 generator follow-up phone call ;s Incomplete Appl 09NOC660 after -the -fact review of ark0kW GDL 02/11109 02111/09 Draft In Progress emergency generator and increase WRF capacity from.80 mgd to 1.67 mgd 09NOCS94 WWTP upgrade and expansion GDL 08/06/08 Data Request 04/21/10 Incomplete Appi 1 ONOC746 after -the -fact review of backup GG 03/30/10 Data Request 04126/10 generators follow-up phone call SEPA M -38 N-Oending Report July Industrial/Comtrcial Air Permits 7/010 e is (Pending and Final Permits for period from 5/7/2010 - 6/7/2010) t.LALLAIVI LSAT GUKKLL; I TUNS GLALLAM BAY NUG 10NUG756 after -the -fact review of backup GG 06/02/10 CENTER generators COAST SEAFOODS COMPANY - SOUTH BEND NOC 09NOC711 after -the -fact review of an emergency GG 10/15/09 SOUTH BEND diesel generator CONNALLY FINISHES YELM NOC DEPARTMENT OF GENERAL OLYMPIA NOC ADMINISTRATION - CAPITAL GG generator CAMPUS 10NOC731 after -the -fact review of an emergency GDL 01/12/10 DEPARTMENT OF OLYMPIA NOC INFORMATIONAL SERVICES Initial Air Operating Permit MVG DEPARTMENT OF LABOR AND TUMWATER NOC INDUSTRIES GDL 05/30/08 ELWHA SURFACE WATER PORT ANGELES NOC INTAKE - TEMP DIVISION 05/20/09 11/21/09 PUMPS remediation at gas station. Data Request ELWHA WATER TREATMENT PORT ANGELES NOC PLANT GDL 12/01/08 FORMER GAS AND GRUB LONG BEACH MOD GOOD CRUSHING YELM NOI GRAND MOUND WWTP GRAND MOUND NOC GRAYS HARBOR ENERGY LLC ELMA AOP GRAYS HARBOR PAPER LP HOQUTAM NOC GULL HARBOR MERCANTILE OLYMPIA NOC HOWARDS PRESTIGE OLYMPIA NOC CLEANERS IMPERIUM GRAYS HARBOR LLC HOQUTAM MOD INNOVATIVE AUTO BODY BELFAIR NOC 09NOC709 install cyclone/bahouse and intake GG 10/05/09 air filters 10NOC751 after the fact review of existing GG 05/06/10 generators 09NOC712 install emergency generators GG 10/29/09 01/18/10 10NOC752 after the fact review of generators GG 05/06/10 10NOC730 after -the -fact permitting for an GDL 01/12/10 emergency backup (standby) GG generator 01/12/1C 10NOC731 after -the -fact review of an emergency GDL 01/12/10 backup (standby) generator 01/12/1C 10MOD749 modify conditions GG 04/23/10 10NO1758 installation of temporary crusher JTK 06/14/10 06/16/10 10NOC738 after -the -fact review of backup GG 02/24/10 01/12/1C Incomplete Appl generator Data Request 01/12/1C Incomplete Appl 09AOP672 Initial Air Operating Permit MVG 04/24/09 04/24/09 08NOC607 install and operate a fuel dryer GDL 05/30/08 11/21/09 09NOC676 perform soil and groundwater GG 05/20/09 11/21/09 Under Review remediation at gas station. Data Request 07/13/09 Incomplete Appl 08NOC647 install dry cleaning machine GDL 12/01/08 12/01/08 10MOD737 modify 08MOD597 GG 12/24/10 follow-up phone call 09NOC700 install and operate an automotive GG 09/01/09 spray booth. 2of8 Sent additional info 07/01/10 to source Enironmental 03/09/10 Checklist completed - sent to Source for signatures Data Request 02/19/10 Incomplete Appl Invoiced 05/07/10 DIS accepts 06/16/1C updated BACT Completeness 07102/1C Review Pending Data Request 01/12/1C Incomplete Appl Data Request 01/12/1C Incomplete Appl Completeness Review Pending Final Issued Data Request 04/22/10 SEPA Draft In Progress PD Completed 11/21/09 Under Review Data Request 07/13/09 Incomplete Appl Draft In Progress Data Request 05/07/10 Incomplete Appl Data Request 02/19/10 follow-up phone call M-39 NSR Pending Report July Industrial/Commercial Air Permits 7/16/2010 (Pending and Final Permits for period from 5/7/2010 - 6/7/2010) INTERFOR PACIFIC INC - FORKS DIVISION INTERFOR PACIFIC INC - FORKS DIVISION INTERNATIONAL PAPER JON'S AUTOBODY LOTT ALLIANCE SATELLITE PLANT - LACEY MIKES REPAIR SHOP NIPPON PAPER INDUSTRIES USA CO LTD OLYMPIC PANEL PRODUCTS LLC PANELTECH PRODUCTS INC PENPLY FORKS AOP 10AUP/W Initial AUv appiclatlon UU V4/3U/ 1u TREATMENT PLANT FORKS MOD 09MOD677 modify Condition 6(I) of 02NOC236 GG 05/28/09 05/11/10 LACEY NOC 09NOC718 install Bobst Diecutter and Printer GDL 12/07/09 12/07/09 ABERDEEN NOC 1ONOC757 install spray painting booth GG 06/03/10 LACEY MOD 10MOD735 modify Condition 1, 4 & 7 of GDL 01/29/10 01/29/10 Incomplete Appl 04NOC370 01/12/10 Incomplete Appl RAYMOND NOC 10NOC744 install (existing) spray booth JTK 03/18/10 05/03/10 PORT ANGELES NOC 08NOC645 Add De -ink plant drum pulper rejects JTK 11/08/08 Incomplete Appl to list of items to be burned at the NO. 8 power boiler SHELTON AOP 09AOP688 renew AOP JTK 07/16/09 08/27/09 HOQUTAM NOC 08NOC648 install 2 treater lines, 1 reactive GG 12/03/08 thermal oxidizer, 1 composit press and a 3mil btu hot oil boiler PORT ANGELES AOP 08AOP640 renew AOP permit PENPLY PORT ANGELES NOC PENPLY PORT ANGELES NOI PORT ANGELES WATER PORT ANGELES NOC TREATMENT PLANT after -the -fact review of an emergency GDL 01/12/10 PORT TOWNSEND AERO PORT NOC MUSEUM TOWNSEND 06/14/10 PUGET SOUND SURFACERS portable NO[ RANNEY WELL CITY OF PORT PORT ANGELES NOC ANGELES backup (standby) generator 06/01/10 RUDDELL LEASE SALES INC PORT ANGELES NOC MVG 10/27/08 10/27/08 10NOC741 modify multiclone that serves the two MVG 03/08/10 09NOC655 install spray in bedliner booth GG 01/27/09 rrenminary exisitng boilers Determination 10NO1753 installation of a temporary boiler MVG 05/18/10 10NOC733 after -the -fact review of an emergency GDL 01/12/10 backup (standby) generator 06/18/10 1ONOC759 install a spray booth GG 06/14/10 10NO1755 operate temporary crusher GG 06/02/10 10NOC732 after -the -fact review of an emergency GDL 01/12/10 backup (standby) generator 06/01/10 09NOC655 install spray in bedliner booth GG 01/27/09 rrenminary Uaic It lU Determination posted Draft In Progress Draft in Progress Issued DNS 06/18/10 Draft in Progress Final Issued Data Request 01/12/09 Incomplete Appl Draft in Progress Data Request 06/01/10 follow-up phone call Incomplete Appl Draft Completed 02/08/10 Internal Review Pending Data Request Incomplete Appl Data Request 01/12/10 Incomplete Appl Data Request Incomplete Appl Final Issued Data Request 01/12/10 Incomplete Appl Data Request 09/24/09 follow-up phone call Incomplete Appl SANDQUIS ABINETS BRINNON NOC 08NOC610 install a spray booth GDL 06/24/08 07/18/08 Draft In ProgressM 074908 O N-Onding Report July Industrial/Comrcial Air Permits "*10 (Pending and Final Permits for period from 5/7/2010 - 6/7/2010) W ItAKtK bKUS C:HIF'F'tF< LLC: SHELTON SIERRA PACIFIC INDUSTRIES - ABERDEEN COGENERATION SIERRA PACIFIC INDUSTRIES - ABERDEEN LUMBER MILL SILVER SPRINGS ORGANICS RAINIER LLC SIMPSON DOOR CO SIMPSON LUMBER CO LLC SIMPSON LUMBER CO LLC ST HELENS ENERGY LLC ST PETERS HOSPITAL STAFFORD CREEK CORRECTIONS CENTER WESTPORT SHIPYARD INC WESTPORT SHIPYARD INC MCCLEARY SHELTON SHELTON OLYMPIA ABERDEEN WESTPORT WESTPORT NOG 08NOC603 install and operate chip mill and log GG 02/18/09 03/11/09 yard REV 09REV699 modify monitoring parameters for GG 08/25/09 02/24/10 particulate control equipment. AOP 08AOP625 application GG 09/02/08 10/17/08 NOC 10NOC754 Compdogs-increase fan groups 1& 2 GG 05/28/10 to 50hp.Add positive forced aeration to finished compost and ponds AOP 09AOP717 AOP Renewal- Wood Door JTK 11/20/09 12/04/09 Manufacturer. REV 09REV678 add new equipment to ACP MVG 06/01/09 06/20/09 AOP 09AOP690 renew AOP MVG 07/29/09 07/29/09 NOC 08N00596 install natural gas well drilling GG 05/02/10 engines & completion rig engines NOC 09NOC710 after -the -fact review of emergency GG 10/16/09 02/10/10 generators NOC 10NOC727 install in -vessel composting unit GDL 01/11/10 05/05/10 REV 09REV702 GDL 09/03/09 NOI 09NO1682 GDL 06/12/09 4 of 8 Invoiced 10/02/09 Data Request 02/24/10 Incomplete Appl Draft Under Review 05/28/10 Received additional 06/30/10 information Completeness Review Pending Draft In Progress Draft in Progress Draft in Progress Location Pending 06/04/10 Final Issued Draft in Progress Draft in Progress Data Request Incomplete Appl M-41 NSR Pending Report July Industrial/Commercial Air Permits 7/16/2010 (Pending and Final Permits for period from 5/7/2010 - 6/7/2010) M-42 e 07108/10 NAgending Report July 7/010 Industrial/Com��cial Air Permits (Pending and Fina[ Permits for period from 51712010 - 6/712010) 6 of 8 M-43 07/08/10 06110/10 NSR Pending Report July Industrial/Commercial Air Permits 7116/2010 (Pending and Final Permits for period from 5!7!2010 - 617!2010) M -44 06/29/10 Nonding Report July Industrial/Comsrcial Air Permits 7010 (Pending and Final Permits for period from 5/7/2010 - 6/7/2010) 8of8 M -45 OLYMPIC REGION CLEAN AIR AGENCY 2940 B Limited Lane NW Olympia, Washington 98502 O STUDY SESSION for BOARD OF DIRECTORS June 9, 2010 Members present: Clay Harwood, Pacific County (Chair) Phil Johnson, Jefferson County Terry Willis, Grays Harbor County Cynthia Pratt, City of Lacey Art Starry, Thurston County Dan Di Guilio, City of Port Angeles Members absent: Mike Doherty, Clallam County Lynda Ring -Erickson, Mason County Craig Ottavelli, City of Olympia (Vice Chair) Legal Counsel: Fred Gentry of Bean, Gentry, Wheeler & Peternell Staff Present: Fran McNair, Executive Director; Robert Moody, Compliance Supervisor; Stephanie Sears, Air Quality Specialist; Aly Dyson, Air Quality Specialist; Dan Nelson, Public Information Officer; and Debbie Moody, Recorder The special meeting was called to order at 12:10 pm. McNair explained we have one of our Air Quality Specialists, Stephanie Sears, is here to present the outdoor O burning regulations and the changes we are hoping to make. We are not proposing significant changes; we want people to be able to read and understand our rules. Of the changes, the most significant would be making our burn ban rules more consistent within the jurisdictions. Outdoor Burninq 101 Sears explained the background for our outdoor burning rules as they are now. Sears asked the Board if they would recognize the smell of burning plastic. The majority of the Board noted they would. Sears stated the burning of garbage has been banned in Washington for about 30 years we would like to think there are a couple of generations that would not recognize that odor. Sears explained the different types of burning. Recreational fires are campfires that are limited to 3 feet in diameter and consist of dry seasoned firewood. The burning of backyard brush is considered Residential burning and would be limited to 4 feet in diameter, with the exception of Thurston County. ORCAA issues Land clearing burn permits which consist of land clearing materials and can be as large as 20 feet. Land clearing burns are allowed only if the land is being cleared to build a home or to change the use of the property. The material to be burned must stay on the originating property. Other burns would include Agricultural burning. We do issue a few Agricultural permits; however most of these types of burns occur on the eastern side of the state. Department of Natural Resources issues permits for Silviculture burns. Pratt asked if DNR coordinates with ORCAA on their burns. Sears stated we do work with them on a limited bases. On occasion we get a complaint regarding a DNR burn and we definitely work with them on these types of issues. Sears went over the prohibitions of burning. Sears noted burning of garbage is illegal and recently burn barrel have been banned. Sears wanted to make it clear that burn barrels are illegal to use, regardless of what you are burning. They are not even to be used for Residential burning. Burn bans prohibit all types 0 bu4rung. 2 During the winter ORCCA would be calling the ban due to health reasons and typically woodstoves are included in those bans as well. Summer burn bans are called by DNR due to fire danger, Sears continued. We do work with DNR in order to coordinate the issuance of permits during this time. The fire districts also work with us during burn bans. We have several areas where burning is not allowed. When we list a `no bum area' in most cases this prohibits Residential and Land Clearing burns. Recreational burns are allowed in most of these areas, except Lacey, Olympia, and Tumwater. All burning has been banned in Lacey, Olympia and Tumwater since 1992 and this was due to Thurston County being in non -attainment. Willis asked if bum bans were placed due to air quality issues/levels that cannot be brought into control. Sears stated air quality burn bans are called in the winter and are in place until the particulate levels settle out. This usually occurs once the weather changes and we then lift the ban. McNair stated we watch the air quality very closely as we do not want the levels to reach non -attainment levels. Willis asked about the cities that have total burn bans, does this mean they have air quality issues. McNair stated they had problems and needed to come up with a plan to stay in attainment. Sears added for the other cities listed as no burn areas, the ban was based on size and population. If it is based on their size, asked Willis, you are saying it is not based on air quality. McNair stated that was correct. McNair added density is a factor. If you live in a densely populated area, smoke is a greater impact on the community. Starry stated it sounds like a localized preventive measure to prevent a localized air quality violation. Stephanie moved on to permitting and enforcement. In our jurisdiction, six counties, we have over 75 fire departments and some of them have their own rules. We receive a lot of calls from the public asking what they need to do in order to burn. In most cases, as long as they are meeting general regulations they are.allowed.to. burn. If, however, they live in a fire district that issues their own permits, they have other rules they need to follow. Sears noted we have a list of which districts have their own permits, so when people call we can refer to the sheet and let them know who has permitting authority. It is very time consuming to ask all the questions necessary to assure the people get the correct information. As for enforcement, Sears stated, if the district issues permits they would handle the enforcement of the permit conditions. If things get out of hand, such as they are burning a structure or other prohibited items, the fire district will ask us to enforce our regulations. Sears noted there are a lot of different rules within our jurisdiction. For instance, Lacey, Olympia and Tumwater have a total burn ban — there is no burning allowed. In Elma, Sears continued, they are allowed all types of burning, including land clearing in the city limits. Then you have the city of Joyce where only recreational fires are allowed. As an inspector, characterizing a city based on population or proximity to an urban area isn't always intuitive or in correlation with the actual regulations for that area. Summary of Regulation Revisions Sears went over the proposed rule revisions. Sears noted we have summer burn bans that are called for fire danger and are called by DNR and the fire districts. The dates for these bans typically start around July 1 and end around the end of August, beginning of September — depending on conditions. Thurston County is a bit different as they have permanently set their dates from July 15 to October 15, and it is written on their permits. These bans can get tricky when it comes to issuing permits and giving people correct burn information. There are a few weeks where we are checking daily to determine if DNR or any of the fire districts have called bans. What we are proposing, Sears stated, is having a set date for the start and end times of these bans. This would be beneficial in that it would be uniform throughout our jurisdiction, which would be less confusing not only for us, but for the people in our jurisdiction. We are looking at using dates that are similar to what we have been seeing in the past. We are looking at the ban being set July 1 through September 39. Pratt asked if Thurston County will have to change their permits. Sears stated they will need to make the change on their M -47 3 permits, but it won't be an additional expense as they print new permits yearly. Sears also noted any jurisdiction can extend their burn bans, for fire danger, beyond our set dates. Willis noted, you are asking for a particular time set for easier enforcement activities, correct? You are asking counties who rely on DNR to dictate when the burn bans are called due to weather. If we have a particularly wet summer, a ban may not be called at all and this proposal would eliminate that decision making process. Why would counties think this is a good idea? Robert Moody, Compliance Supervisor, noted it is an opportunity for the public to have consistency, Effectively we are reducing emissions. We are looking at healthier air for our citizens. McNair noted we are looking at air quality and the next piece to this conversation, down the line, is we would eventually want to look for and encourage healthier alternatives to burning. Having a set burn ban will help us move in that direction. Willis asked if banning summer burning just creates a build- up of debris that will then be burned in the fall when we may have inversions. R.Moody stated we understand that could happen, on the other hand there are going to be those individuals who don't want to sit on piles of debris through the summer and will dispose of it in a cleaner manner—such as taking it to Grays Harbor Paper. Certainly, R.Moody continued, some people will hold it to burn in the fall. Also, the burns won't be occurring during tourist season. Dan Nelson, 'Public Information Officer, stated from a county perspective, we do have a model in Thurston County. The current program – July 15 through October 15 – was developed with the fire departments. The Thurston County Burn Committee is made up of ORCAA staff, the fire districts, and CAPCOM. We all worker together to develop the ban. The fire districts like the set dates as it simplifies things for everyone involved. The general public knows when the ban is and there is no question when they can and can't burn. The districts like it because it is a cost savings because they don't have to notify the media and spend additional time letting people know of the ban. Nelson stated some of the fire districts have reported a reduction in wild fires -and due to this they are able, to, reduce -the number of brush trucks in their fleet. If there is a.burn . . occurring during this time, they know it is illegal and will just put it out – which in turn reduces the chance for wild fires. Johnson asked if UNR's bans are based solely on fire danger. Staff stated that was correct. Starry asked if the purpose for summer burn bans is for fire safety, wildfires or both. McNair noted for DNR it would be for safety and prevention of wildfires. Starry noted you are discussing air quality and in structuring the argument you need to show the benefit of air quality in the summer. McNair noted burns emit pollutants regardless of the time of year. Sears added holding the material throughout the summer allows for it to dry out and it burns hotter and faster, and would create less smoke than when it is green. Sears also stated it helps people plan their bums as well. If they know at what time the burning is banned, they know they have the set boundary and they don't have to wait for the ban to be called – which could occur the day after they receive a permit – depending on weather. Johnson stated it could force people in construction to use alternative burning. In new construction, Johnson stated, they will not want to leave a pile of debris next to a newly constructed home. Nelson, noting R.Moody's statement, we are seeing an increase in alternative uses for brush debris. Even though the air quality impacts are less in the summer months than the winter, our goal is to create a behavior change. Using alternative methods to dispose of the brush debris is a far better way to go overall. Harwood noted a lot of the transfer stations have different bins in order for people to sort through the materials. He stated they have treated wood bins, clean wood/brush bins, etc. along with other recycle bins. Sears continued noted we do have some other goals in our revision as well. We are also trying to update our rules in accordance to the WAC. We will be including the new no burn areas, updating our definitions, organizing it the rules and making it easier to read for the general public and creating uniformity throughout the jurisdiction. Sears stated we will be adding a chart to the regulations showing and explaining each no burn area. We have highlighted Hoquiam and Cosmopolis. Currently half of Hoquiam is affected by the no burn area and for ease of education and coordination we have been asked by the city to include the entire city in the no burn area. is 4 Hoquiam and Cosmopolis currently have a ban on land clearing burns and because Cosmopolis issues only about 10 Residential burn permits per year we would like to propose Cosmopolis be part of the no burn area. Willis asked if they have requested to be in the no burn area. McNair stated they have not and Cosmopolis is one of the divided cities as well. R.Moody stated we have spoken with their code enforcement person and the fire chief. The fire chief stated for now he is willing to continue to offer the permits, but if we impose something else, he would go with that. Sears stated we are also proposing to add the provision that we can revoke permits for fraudulent information on permits. An example of fraudulent information would be in the case of Land Clearing permits, you are to write the amount of acreage that has been cleared. Our fees are based on acreage cleared and we see a large parcel being cleared and the burn permit will stated one acre. The example shown was for a 25 acre parcel, claiming they are burning 1 acre. If on inspection we go out and see they have actually cleared the entire parcel (or a section greater than 1 acre) we could revoke the permit and issue a violation. Harwood asked if they clear all the land and place it in 1 acre they would be out of compliance because they cleared the entire 25. Sears stated in this case, if they burn the debris from the entire 25 acres their permit would have cost $2,500 rather than the $100 they paid. Most of the time, we see 1 or 2 acres actually being cleared on these large parcels; they usually only want to clear to make room for their house and yard. But we do see these types of violations as well. Sears went over the budget of the burn programs. She noted that we are spending a great deal of time more than what the permits bring in. Our time for burning is spent not only on permitting, but enforcement, taking and investigating complaints, education, hearings, etc. Starry wanted to clarify `budget loss' on the char` refers to the amount of effort spent on complaints and education. Sears noted this would be for the entire burn program. Sears stated the packet includes a copy of the rule changes. She explained the strikeout version will show the rule content is still there, the structure is being organized for ease of use. 0 Sears briefly went over the strikeout version. McNair noted the proposed rule is also included in your packet. Sears explained all the definitions pertaining only to open burning will be added to this rule and removed for the general definitions. The old rule has a section that notes fires described in rule 6.2 are prohibited in the following area and includes Lacey, Olympia and Tumwafer no bum area... We have clarified that definition so when there is an event, such as Saint Martin's annual pig roast where we have in the past issue a cooking fire permit, we can do it. These types of permits are very limited — usually 1 day — and they have a lot of restrictions. Future of Outdoor Burning Sears noted the WAC really outlines specifically how we should be going about limiting burning. Per the WAC, we are to look at our rules every three years to determine what areas burning should be limited. The WAC explains how to determine if there are reasonable alternatives. Sears showed a map, outlining the areas that accept yard waste. In our jurisdiction we have 17 areas that accept land clearing and residential material. We have drawn a 15 mile radius circle around those facilities that accept the waste. Sears pointed out Thurston County is close to being completely covered for alternatives, as is Mason County. We need to start thinking about what areas have alternatives, what those alternatives are and we need to look towards banning burning in those areas. Sears ended by stating the major policy changes: Summer burn ban timeline, recreational burn permits for Lacey, Olympia, and Tumwater, and inclusion of Hoquiam and Cosmopolis in the no burn area. Di Guilio asked if Hoquiam and Cosmopolis would have a grace period with regards to the ban. Sears stated yes, typically we work with them for approximately a year. McNair stated we will definitely have education and outreach for them — along with a grace period. Harwood asked if we would continue with allowing the emergency burning of storm debris. McNair stated that Ali -49 will still be allowed. McNair asked Willis for her perspective on the Hoquiam and Cosmopolis proposal. Willis stated her first reaction was with regards to Cosmopolis. Hoquiam is requesting the ban, so that seems to be the proper step to take. Willis noted she isn't as comfortable with the Cosmopolis situation as they didn't request it. Willis stated she doesn't see the correlation to what the need is. Staff states it is a preventive measure Willis noted, but Grays Harbor continues to show good, clean air according to the reports we received. Willis noted she plans on discussing this issue with the Mayor of Cosmopolis to see if we are all on the same page. Willis stated she does have some issues with the bans, noting Grays Harbor shouldn't be compared to Thurston County. Willis stated she would like to look closer at the proposal. McNair noted this is just an introduction of the proposal. We wanted to hear what the different jurisdictions felt about the changes. If any of the affected areas would like staff to come out and discuss this, we would be happy to do that. This is a work in progress. Willis added the fire departments are most impacted by the bans. They have to advertise them and most likely have the biggest impact on letting their areas know what is going on. Willis stated she will be discussing these issues with her Fre districts. It ORCAA has the responsibility to call burn bans for air quality, DNR has the obligation and option to call them for dry weather outside of those days. Willis wanted to make sure we were not overriding DNR's obligations. McNair stated we would not prohibit any jurisdiction from beginning their ban earlier than our proposed July 1 date, no holding their ban over beyond our September 30 date. McNair asked the Board what they needed in order to move the process along. Pratt stated she would like to know how the new dates will affect Thurston County. Starry asked if we have already discussed the date j changes with Thurston County. Nelson stated we have discussed it in the past -and are.willing to.look,at_ - j shifting the dates. Nelson stated there have been several instances in the past where the bans were called prior to Thurston County's set dates. McNair stated we would be open to the July 15 start date. Starry asked if we know how many times DNR has issued permits during the July -October timeline. Will the dates really mak that much of a difference in the end? R.Moody stated legally, DNR can issue silviculture permits regardless of our action. They are independent of our actions; however we do observe each other's activities. DNR is fairly cautious during the summer months, R.Moody stated. They also have fire suppression on hand, just in .case. Harwood asked if we could have limited permits for recreational in the urban growth areas. R.Moody stated j recreational fires are allowed in those areas. Harwood noted he receives calfs as to why residential fires aren't allowed in the urban growth area. Harwood stated he understands why they aren't allowed in the city, but j wants to know why the urban growth areas are limited. Harwood stated he would like to see us allow limited burning of this type in the urban growth areas. R.Moody noted state laws specifically prohibit residential burns in those areas, recreational fires, on the other hand are allowed. McNair noted the only area that can't have recreational fires is Lacey, Olympia and Tumwater. McNair stated prior to Ottavelli leaving he noted that recreational fires are occurring in the city limits and wondered if there was a way to allow the small fires legally. He asked staff to consider a policy on this issue. McNair noted we do know there are illegal fires occurring, but we don't have the staff to drive around daily and enforce or educate each one. We typically find out about them through complaints and educate and enforce at that time. Pratt stated recently in Lacey, a Boy Scouts requested a campfire in one of the parks. Pratt stated the city of Lacey did not allow the burn to occur. Willis noted she has a bit of an issue making rules that we can't enforce. If we can't enforce what we are proposing, we shouldn't propose it. Starry agreed. Starry stated we need to recognize what is reasonable. Willis asked where the burden falls. Is it ORCAA staff or will it be our volunteer fire staff. McNair noted this is how it is in Lacey, Olympia and Tumwater currently — you are not allowed to burn at all, including recreational fires. The burden is on ORCAA. Willis asked how it would be in Grays Harbor— in the unincorporated areas, iMW M -5o d someone in a rural area, if someone were to build a non -recreational fire, who deals with it. R.Moody noted typically a person sees a fire and they immediately call the fire department, in tum the fire department will contact us (as long as it isn't a fire danger situation). Willis stated she would like to hear from the fire departments on how they would be handling these situations. Harwood stated in some of the more rural areas of Pacific County the DNR is the first contact. Willis noted this is a good example of how you can't make one rule to fit different areas. Willis asked who sits on the burn committee. Nelson stated it is for Thurston County and includes fire districts and emergency response. McNair noted we will keep this as an ongoing process and continue discussions. The Board thanked staff for the presentation. The session ended at 1:00 pm. PRESENTED BY: Francea L. McNair, Executive Director APPROVED BY: • APPROVED and SIGNED this day of 2010. 1-1 M-51 EPA is setting a new ozone air quality standard to protect public health Background information 1n 2008, the U.S. Environmental Protection Agency (EPA) strengthened the fedei--al air quality standard for ozone. EPA set an 8 -hour standard of 0.075 parts per milfion (ppm). Even though this was the most stringent ozone standard ever set by EPA, it fell short of the public health recommendations made by EPA's panel of scientific advisors, the dean. Air Scientific Advisory Committee. In 2009, EPA announced it would reconsider the 2008 standard to ensure it had a gvo scientific basis and would protect public health. On January 6, 2010, EPA proposed to strengthen the federal 8 -hour ozone standard to make it better protect public health. EPA proposes to set the standard witbin the range of 0.060 to 0.070 ppin. EPA committed to making a decision on the ozone standard by August 31, 2010. What's next Designating areas EPA can make one of three designations for an area of the state: + attainment (meets the standard), + nonattainment (doesn't meet the staxidard), or • unclassifiable (not enough information). After EPA revises the ozone standard., the Washington Department of Ecology (Ecology) can make recommendations to EPA on designations for every area of the state. DEPARTMENT OF ECOLOGY State of Washington ABOUT OZONE There are two kinds of ozone. "Good' ozone forms naturally about 10 to 30 miles above the Earth's surface. It helps protect life on Earth from the sun's harmful rays. The ozone at ground level is considered "bad." It is the main ingredient of smog, and can cause health problems. Ground -level ozone is a gas created by a chemical reaction between oxides of nitrogen (NOx) and volatile organic compounds (VOCs) in the presence of sunlight. Vehicle and industrial emissions, gasoline vapors, chemical solvents; acid haturdl sourcas- emit NOx and VOCs that help form ground -level ozone. Many urban areas tend to have high levels of ozone. But high ozone levels can also be found in rural areas, because wind carries ozone and ozone - forming pollutants away from their sources. Contact Information: Anya Caudill Air Quality Program 364-407-6530 anya.caudill@ecy.wa.gov Special accommodations: To ask about the availability of this document in a version for the visually impaired, call the Air Quality Program at 360- 41]7-6860. Persons with hearing loss, call 711 for Washington Relay Service, Persons with a speech 14isa1,i4ity, call 877-833-5341. Publication Number: 10-02-00t2010 . Rev7 �;'�Please reuse and recycle [ 1 3 t � M-52 • • • • • Air Quality Program July 2010 Ecology must recommend designations and nonattainment boundaries to EPA by January 7, 2011. Any recommendation for a nonattainment area designation must include recommended boundaries for the area. In recommending boundaries, Ecology must consider many factors set by EPA. The boundaries must include both the area violating the standard, and the areas where contributing air pollution sources are located. EPA will evaluate Ecology's recommendations and make final designations by July 2011. Both Ecology's recommendations and EPA's designations are based on monitored ozone concentrations. Required actions and timeline EPA committed to provide more information to states, including: what states must do to reduce air pollution, and when nonattainment areas must comply with the standard (reach attainment). By December 2013, Ecology must submit plans to EPA showing how Washington will reduce ozone pollution to meet the standard. Public involvement Ecology will provide a public comment period and hold a public hearing on proposed designations before submitting recommendations to EPA. Because EPA will announce the standard in August 2010 and Ecology must submit its recommendations to EPA by January 2011, only four to five months are available for public involvement activities. Health concerns Unhealthy ozone levels are especially harmful to children, older adults, people with lung disease, and people who are active. Breathing ozone can: • aggravate asthma; • inflame lung tissue; • permanently scar lung tissue after repeated exposures; • trigger airway irritation, coughing, and pain when taking a deep breath; • lower resistance to respiratory illnesses like pneumonia and bronchitis; and • cause wheezing and breathing difficulties during exercise or outdoor activities. For more information You can get information online at: bLV://www.egy.wa.P-oY/Programs/air/airlioine.litml Publication Number. 10-02-001 (Rev. 7/2010) 2° Please reuse and recycle M -53