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HomeMy WebLinkAboutAgenda Packet 08/03/2010c, fr Clerk AGENDA • �„� ��8�� CITY COUNCIL MEETING PO321 East 5th Street it X_x August 3, 2010 ►;ili WASHINGTON, U.S.A. SPECIAL MEETING — 5:00 P.M 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 — SPECIAL MEETING AT 5:00 p.m. - EXECUTIVE SESSION - Under the authority of RCW 42.30.110(1)(b), regarding the acquisition of real estate; and RCW 42.30.110(1)(i), to discuss potential litigation with legal counsel. CALL TO ORDER - REGULAR MEETING AT 6:00 p.m. B. ROLL CALL PLEDGE OF ALLEGIANCE CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. Senior Games Proclamation B-1 1. Present to Port Angeles Senior Center Supervisor, D Bellemente PUBLIC COMMENT C. CITY COUNCIL REPORTS D. WORK SESSION 1. Mid -Year Finance Report / Finance Newsletter D-1 1. Finance Director Ziomkowski 2. Fire Consolidation Plan D-3 2. Fire Chief Dan McKeen 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 July 15, and 20, 2010. F-1 1. Accept Consent Agenda 2. Expenditure Approval List: 7/10/10 to 7/23/10 for $677,939.75. F-8 3. Fagade Improvement Grant Awards F-27 4. Forks Prisoner Confinement Services Agreement F-28 5. Award 2010 Tree Trimming Contract WF -109146-03 F-35 6. Material Purchase: Traffic Sign Materials, Contract No. ST -10-013 F-36 G. ORDINANCES NOT REQUIRING PUBLIC HEARINGS 1. Utility Projects Bond Financing G-1 1. 2"d Reading; Adopt Ordinance H. RESOLUTIONS NOT REQUIRING PUBLIC HEARINGS 1. Resolution in Opposition to Additional State & Federal Unfunded H-1 1. Pass Resolution Mandates • NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK August 3, 2010 Port Angeles City Council Meeting Page - 1 A AGENDA ITEM Page RECOMMENDATION I. OTHER CONSIDERATIONS 1. Waterfront & Transportation Design — Consultant Contract I-1 1. Award J. PUBLIC HEARINGS - QUASI-JUDICIAL (7:00 P.M. or soon thereafter) K PUBLIC HEARINGS — OTHER (7:00 P.M. or soon thereafter) 1. Electric Utility 2010 Resource Plan K-1 1. Open Public Hearing; Accept Comment. 2. Building Code Amendments K-2 2. Open Public Hearing; Conduct I' Reading; Continue to August 17, 2010 L. FINANCE 1. Hurricane Ridge Road Funding Request L-1 1. Approve M. INFORMATION City Manager Reports: 1. Clallam Economic Development Council — 2nd Qtr Report M-1 2. Code Compliance — 2nd Qtr Report M-4 3. Port Angeles Police Dept — Mid Year Report M-5 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 August 3, 2010 Port Angeles City Council Meeting Page - 2 PROCLAMATION In Recognition of CITY OF PORT ANGELES/OLYMPIC PENINSULA SENIOR GAMES August 22 — 29, 2010 WHEREAS, participants of the City of Port Angeles/Olympic Peninsula Senior Games choose an active and healthy lifestyle and WHEREAS, participants compete in athletic events in the spirit of friendship and camaraderie; and WHEREAS, Port Angeles pays tribute to the achievements and contributions of athletes 50 years old and above; and WHEREAS, the City of Port Angeles and the Port Angeles Senior Center foster activities to promote fitness and healthy lifestyles; and WHEREAS, the City of Port Angeles and the Port Angeles Senior Center dedicate themselves to breaking down the stereotypes of aging. NOW, THEREFORE, I, DANIEL A. DI GUILIO, MAYOR, ON BEHALF OF THE CITY COUNCIL OF PORT ANGELES, do hereby recognize the week of August 22 through 29, 2010, as The City of Port Angeles/Olympic Peninsula Senior Games Week in Port Angeles and I further urge all citizens to warmly welcome and appreciate the athletes, and their friends and families as they "Come for the Sport and Stay for the Fun". August 3, 2010 Daniel A. Di Guilio, Mayor PUBLIC INTEREST SIGN-UP SHEET PORTANGELES WASHINGTON, U S A DATE OF MEETING: August 3, 2010 You are encouraged to sign below if: CITY COUNCIL REGULAR MEETING LOCATION: City 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 Member, 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. G:\Group\Clerk\Forms\Council Attendance Roster.doc ^,, $..Address ;>sr .y,a�,,r°� 0 °. Agenda Topic n � Plan to S eak p,.,„ r a u , , , ; : �^ p ,�DLt 11 1' dr�i1 / WP 17Y �7 PAR!C°JOV f'�1,�r�dr 11V,9, l�5 O/N J �T M6[ LD Grbiel Y- N N `i� �J N 11AG1(1l Jc �l Z,l.auslC ,� J (-�� n/N Fran'C C(i on \�rr�rcnc R1 ON G:\Group\Clerk\Forms\Council Attendance Roster.doc PUBLIC INTEREST SIGN-UP SHEET G:\Group\Clerk\Forms\Council Attendance Roster.doc lei ism 6., 5s ge "AM'Spical' o, 1'an to. Speak —TS (�IN u r4lu kAct (S)N OF g Y/N N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N Y/N G:\Group\Clerk\Forms\Council Attendance Roster.doc PETITION OPPOSING PUBLIC FUNDING FOR HARBORWQRKS 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. Na y �157 - 96 54� P-9 FA l ? l (ho 'it 13e35 b� NUJ ZcXo ��G 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 McLenan; 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 Lis, The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 Million. We do not want I-IarborWorks 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. 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 HA 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 finding 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. A 1 P"j lam' 74 'S'� RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 Please record below the naine, address, & phone or e-mail of the person circulating this petition: PE'T'ITION OPPOSING PUBLIC FUNDING FOR IiARBORWORKS 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 Goldt-nark; 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. R.AYONIER 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) Namef sin Address Phonelemail o tional � � �`�1-P-z..��aa� c� ! d � � C � �- Rug � [L� �x 212 uj.9-1-1 5%e e4 ep 3,6 1,4 /'A -"'i I -AA A I RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability -- PO Box 2633 — P.A. , WA -- 98362 Please record below the narne, address, & phone or e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THERAYONIER 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 Goldinark; 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 wart 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 ; 'A,,V, L4 5 2-- YO Z- t RETURN PETITION TO. Citizens fbxjiscal Restraint & Public Accountability — PO Bax 2633 — P.A. , WA — 98362 Please record below the name, address, & phone or email 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) r,i[V 0Ja Lj Nam n , Address i�-o 1 3 Phone/email (optional) ,;1.� CJtC. •Ji - i��i,,� --�r .`� �� Cl/ � � 7���', �r � �(� � C� -� ._ l • �� x. I 4; 1 r [A l�r7k RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 91P62 Please record below the name, address, &phone or e-mail of the perso circulating this petition: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 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) G RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WtkA — 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: 9 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. RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Boz 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. Names from email approval Address Phone/email (optional) Rebecca Redshaw 713 E. 7th Street PA Richard E. Reynolds 1315 Crescent Beach Rd. P.O. Box 192 Joyce, WA 98343-0192 (360)928-3538 John S. Marshall 321 E. 12th St. P.A. 457-0708 Richard Gray 520 Grandview Drive, Seauim , Wa 98382 477-4533 Darlene Clemens 1217 E. 7th Port Angeles, WA 98362 457-6551 Sam Baker 1151 East White Creek Drive Port Angeles, Wa 98362 Rayna Abrahams 2102 Seabreeze Place Port Angeles, Wa 98362 Kenneth Abrahams 2102 Seabreez Place Port Angeles, Wa 98362 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. �c,�io, (_ap, d) 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, iyet 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. RE'T'URN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — POO Boa Please record below the name, address, & phone or e-mail of the person circulating this petition: I'? WA — 98362 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. �c^ y r OROY uti F0T-� 1-1 RETURN YL'1'1' MIN 1 V: Uitizens for r iscal mestriaent m ruouc Accountauuity — ry tsox LO -53 — Y.A. , WA 98367 — 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. Name( print) Name( sign) Address Phone/email (optional) -moi L_ /7 ,t �y � � o td �' z Z $,/ 3' / l r} L �E�G^ L_�t��zs�-i �'� �! 2 �a��vY� e kJ /)/-/ f1'�� Z h 0_0'- vc 1'ay & iN. w _/f'j'. It y,.. e"t RETURN PETITION TO: Clallam Citizens for, Fiscal Restraint & Public Accountability - PO Box 2633, Pt Angeles, WA, 98362 Please record below the name, address, & phone or e-mail of the person circulating this petition: f i'ii �-`�� � � � l i lV 1�-%C' `•-���-, i-7 i-dL,`�-^" ;:.�°��! �` -' r~�4 �-i�-{lt ,,j! ���(r r�`�� �L�e�. RETURN PETITION TO: Clallam Citizens for, Fiscal Restraint & Public Accountability - PO Box 2633, Pt Angeles, 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.t The HarborWorks Public Development Authority was created without public input, yet publicly funded with $1.5 N illion.t f 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.' This agreement should not be interfered with. Name( printl Name( sign) Address Phone/email (optional) /11" s //;r0to <,A, // X j �� 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 wash 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) Na a si n Address Yhone/email op tionat 'T fel 4 k r1 RETtJRN PETCTION 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 RA''YONIE�R 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 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 polltitlon its Mill left behind. This agreement should not be interfered witli, 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 RAYON ER 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 Stw•devant; 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. 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. Name( print) Name( si2n) Address Phone/email (optional) ►1C.}tla� Cox — 5 WwAv')Ael rot. 4 j , J , �. � �4& RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633— P.A. , WA —9 Please record below the naive, address, & phone or e-mail of the person circulating this petition: J t,k 1 A1ZSnr Io q1) id P/1 -I )Irnny_ I r1i)I /,• _ i 2(7 n 7_ - 2, rbF A v Ek 3 � n/� vc 1 6 -'-� ? 8 � RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633— P.A. , WA —9 Please record below the naive, address, & phone or e-mail of the person circulating this petition: J t,k 1 A1ZSnr Io q1) id P/1 -I )Irnny_ I r1i)I /,• _ i 2(7 n 7_ - 2, 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) Kathy Davies 512 Colville Rd. Port Angeles kdavies512(4),msn.com Robert Davies 512 Colville Rd. Port Any-eles Derek Nixon 1608 E Street, Belliny-ham 98225 r.derek.nixon(a),gmail.com E-mail signature authorizations to Shirley Nixon, shirleynixon@olympus.net, PO Box 178, Port Angeles, 98362 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) Robert Crist 200 Vista View Drive Sequim, Wa. 98382 John Wegmann 481 Lake Dawn Road Port Angeles, Wa 98362 Merry Van Deusen 633 E. Whidby Port Angeles, Wa 98362 Viki Kocha 194 Abbott Rd Port Angeles, WA 98362 Martha J. Baker 1151 E. White Creek Dr. Port Angeles, Wa 98362 Pam Marshall 321 East 12th Port Angeles, Wa 98362 Bryan Bell 628 E. 11th St. Port Angeles, WA 98362 Tracy Beals 628 E. 11th St. Port Angeles, WA 98362 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) tC Lt EZ-- �'l �� �rcur��lS��,OIdtL 0 S Ewl�- v G� ysy 7-/39 Please record below the & phone or a -mil of the person circulating this petition! rI 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. vh RETURN PETITION Please record below the name, address, &phone or -e-mail of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDINGIOR HARBORWI TO BUY- OR CLEAN UP THE RAY01NIER PROPERTY To: Gover-poi-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) �7zwi, 0 r1 P �' I I Y - RETU PETITION TO: Citizens 4r M161—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 -(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) r, '3 3 C-eJ4v, `,. RETURN P1 TITION TO: Citizens for Fiscal Restraint & Public Aecountability�'-'PO Box Please record below the name, address, & phone or e-mail of the person circulating this petition: ueZ 4 5 -7----( MMM P.A. , 'WA — 98362 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. 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 Lip the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name(sign) Address Phonetemail (outional) Z 1 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. Name( print ��v��d��� / ��c�t C ' ' �!�� --� �� ,� fes- 14 �(7--3 ?4�K V!7- rZj o cry ' l l l/u,NL v V 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: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY o: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; epresentatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; jirector of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners he HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public iput, yet publicly funded with $1.5 Million. le do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want xpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. AYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean the pollution its mill left behind. This agreement should not be interfered with. rind. 4. KapwName(_sip-nlAddress Phone/email (ogti 5Kl r2��J. REC-V1-_:'S /v/ LI/, 7�crv� d le� - �!s 1 Rb VA ..t f l /1 J %X / ) /r/P C W l77 %' l 7VF' ,,� V i j _� - _ __I Ln 3 01'1 1 C. A F PA ,TURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability - PO Box 2633- P.A. , WA - 98362 :ase record below the name, address, & phone or e-mail of the person circulating thio nPti+in»• 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. 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. Name( print)_ Name( sign) Address Phonelemail (optional) 777. ,l ;417, /&,�L: ( mp6A 5H_C LLt_ �--keM9bat 6'0 (?o-,<, I q Q ► _fn r k W fl 5 Iv .2 1.30 L&16h C� �'ni , c Z" 1 S-% t?Lt 6 zG/' , S Z PA— 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. 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. 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. Nameprint) Name sin Address Phone/email. (optional) e ne_ Z- /177 S 5�� a f ar ec, (e be� P6 A . w &l5� - -2 D A f_6_rd&�w J-0 ��"" Z Kw ,e e� 19j FA L ( , V� // t 3 1 jf;4,f- 5 Yv-x k 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. 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. RETURN PETITION TO: Citizens for Fiscal Restraint & Public -- 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. _kA f�a0 �_l AJ its r.sem- 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: I- :01 PETITION OPPOSING PUBLIC FUNDING FOR HARBORWORKS TO BUY OR CLEAN UP THE RAYONIER PROPERTY o: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; .epresentatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; lirector of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners he HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public tput, yet publicly funded with $1.5 Million. Je do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want ixpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. AYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean the pollution its mill left behind. This agreement should not be interfered with. ame( print) Name( sign) Address Phone/email (optional) r- _ A ETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 ease 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( sign) Address Phone/email (optional) �Q4- r' biq V _ff�s Z5 31, O�OL 6tL�t 94 �3 Lim CZ Q— t A ZZ AkU4 o 3t)x/52-3770 f'Ac c 1-(Aq CL © SL4�/t'&J.1,a 3,0 Till T. 3 -.47 7- r V I+ _,�,,y �o Fla- 4 % % e /� t(5 7�-Z [/ T.jw C-1 'e r ( c'r' L\ r—� _ -- ,�. _ �� L1 �l T o �_ _.4-r C T l 1 h �cmr�'' lv. SoLp� r..,. �G �`,�o� v►S v�sr^�R, NI A 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 Io: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; .epresentatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; ►irector of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners he HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public iput, yet publicly funded with $1.5 Million. le do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want xpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. AYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean the pollution its mill left behind. This agreement should not be interfered with. 'TURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 95362 ' "Plow 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 o: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 14 Administrator McLerran; epresentatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; irector of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners ,ie HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public put, yet publicly funded with $1.5 Million. `e do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want xpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. kYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean the pollution its mill left behind This agreement should not be interfered. with. ► ��� �-r► M" g�4Ka p _, �r`M �5- '3 a• S - L�iYe 9, A�� �D PPS -r�� r�rrrrr�r rrrr��r i�rr�r�>•� � �a CA�D tf__ ejjz ':�\ \Q- ;TURN PETITION TO; Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA — 98362 ;ase 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( sign) Address Phone/email (optional) WE � 15-" 2 I'll hv FL - 3? 7. i^. I Irx GlItrvl..v k \ An(1a e n AAAo 11111 I(��wnlC,('y d) �; ��> n MA/&/I M#- 541 3�i5 P _1 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. Name( print) Name( sign) Address Phone/email (optional) �1e ;G 0 - VS 7 9 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 o: Governor Gregoire; Senators Murray and Cantwell; Congressman Dicks; USEPA Region 10 Administrator McLerran; epresentatives Kessler & Van De Wege; Senator Hargrove; Director of Ecology Sturdevant; Commissioner of Public Lands Goldmark; irector of Puget Sound Partnership Dicks; City Council of Port Angeles; Port Angeles Port Commissioners he HarborWorks Board does not represent us. The HarborWorks Public Development Authority was created without public put, yet publicly funded with $1.5 Million. Te do not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want xpayers made responsible for the cleanup. We do not want any more public funding spent on this cleanup. AYONIER INC. has a cleanup agreement in place with the State holding Rayonier FULLY responsible for paying to clean 3 the pollution its mill left behind. This agreement should not be interfered with. ame( print) Name( sign) Address Phone/email (optional) :TURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability —PO Box 2633— P.A. , WA -98362 :ase 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 Goldinark; 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) Name sin Address Phone/email (optional) ke� RETURN PETITION TO: Citizen 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 Sttirdevant; 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 Harl)orWorks 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 niill left behind, This agreement should not be interfered with. r0 Z - 1 -Z / L _j LtL� 5 0 RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability — PO Box 2633 — P.A. , WA -- 98362 Please record below the name, address, & phone or email 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 Developriient 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. .7 - - .n. ♦y XI - JVJiIA Please record below the name, address, &. phone or email 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. �s i6� lLtd /�l ti/n:? �.rt-C, �A 5 \AA &e 7t3 ty S, — Qq °ta3b3-14510 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 Lip the pollution its mill left behind. This agreement should not be interfered with. RETURN PETI'T'ION 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 HARBORV'VORKS 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 inill left behind. This agreement should not be interfered with. Name( print) Nam( sign) Address Phone/email (optional) SA-t'k- V -L" CnF,vX301 S oo.i� �. Q �. � , V _ ccrv, % %-�►c 5tc�tkz ,� ►t cr Q 8 3 $ z - 314o J,c , e s 1"e -fie 2 ie- 3 5=' -79 f- Zc AL p\JE -t:)br, o-) �)'t_r - 4al 1 /a) I6 S�' 4"j It t -v-- r R . RETURN PETITION TO: Citizens for Fiscal Restraint & Public Accountability - PO Box 2633 -- P.A. , WA - 98362 Please record below the name, address, & phone or email of the person circulating this petition: PETITION OPPOSING PUBLIC FUNDING FOR HARBORWQRKS 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 LIP the pollution its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) 1 V i -17 � Al' 0 A /P 12o 0/ /- - 01 6�'� 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 IJP 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. A 11 � o14 1 V", LAULL�_[ I Law.). LIL - �J 7'tt.�1. )e) O APOA) , L-WZj._,, -y11\flt r, q/ 7-t5 / nn RETURN PETITION TO: Citizens YoF Piscal 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 HARBORWORI�S 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; Coinmissioner 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. 3o not want HarborWorks involved with future decisions about the Rayonier property or its cleanup. We do not want ayers 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 Up the pollution its mill left behind. This agreement should not be interfered with. responsible for paying to clean RETURN PETITWN TO: Citizens for Fiscal Res"Ohint & 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 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. '(-tel S �- M >N L 7Z . .4 3 9 a CQ t21,3 - 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: 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 Bolding Rayonier FULLY responsible for paying to clean Lip the pollLition its mill left behind. This agreement should not be interfered with. Name( print) Name( sign) Address Phone/email (optional) C'�v"', }2 33/ (112'144(t� 7_�k4461e_ 1�Z'4e'2'ZgL q_�r 9d,>6 z RETURN PETI'T'ION 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: 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 14 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 X1.5 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 circulating this petition: Comments by Janet Marx 8-3-10 PA City Council Meeting Are you getting the message yet? The people of this area are more then opposed to HarborWorks, they are angry with you because you are not listening. Council members are elected to represent the people and protect their interests. You appear to be more concerned with representing the Port Commissioners and long-time business associates. Over the past two years citizens have brought to your attention concerns about HarborWork's legitimacy, it's financing, it's professionalism and it's inconsistent statements and you have ignored all these concerns. It's time to face up to the elephant in the council chamber. It's time for you to read and study HarborWork's documents, budgets and letters. It's time to start asking hard questions. It's past time to start considering whether the City really wants to be involved in an attempt to purchase a property with heavy liabilities. Most of all it's way past time to hold a special session or public forum to debate the future of an organization with little public support and few funding options. So, I have a question for the City Council: Just how many signatures will it take to get your attention and produce some action? Janet Marx 112 Lockerbie Place Port Angeles �yQt PF)RYT q,,,��! �AIMN� 2010 MID -YEAR FINANCIAL UPDATE Presented by: Yvonne Ziomkowski, Finance Director August 3, 2010 Agenda ❑ How did we finish 2009? ❑ What is our current financial position? o Revenues, including 1 -time revenues o Expenditures ❑ What challenges are we facing? ❑ What is our 2010 year-end estimate? ❑ What can we expect in 2011 ? 8/3/2010 L 1 8/3/2010 2009 Year -End Position — Citywide 2009 Budget vs. Actual Citywide Variance Budget Actual $ % Revenues 96,617,536 97,231,178 613,642 064% Expenses 101,570,792 97,281,886 (4,288,906) -422% Rev. - Exp. (4,953,256) (50,708) 4,902,548 8/3/2010 2009 Year -End Position — General Fund & Street 2009 Budget vs. Actual General Fund & Street Ove''r?all'budget'"savings";ofnearly',$400;0,00im'GF'& Street GF & Street Reserves As of Projected Dec. 2009 2010 ❑ General Fund $4,273,149 $4,1041262 ❑ Street $ 588,114 $ 426,959 Fund Reserves as of December 31 $6,000,000 Variance Budget Actual $ % Revenues 18,649,518 18,517,222 (132,296) -071% Expenditures 19,239,298 18,720,222 (519,076) -270% Rev. - Exp. (589,780) (203,000) �u386780, Ove''r?all'budget'"savings";ofnearly',$400;0,00im'GF'& Street GF & Street Reserves As of Projected Dec. 2009 2010 ❑ General Fund $4,273,149 $4,1041262 ❑ Street $ 588,114 $ 426,959 Fund Reserves as of December 31 $6,000,000 ------ $5,000,000 — -- -- -- - $4,000,000 $3,000,000+ -General Fund $2,000,000------- --- -s-Street $1,000,000 2007 2008 2009 2010 Est "Can anybody remember when the times were not hard and the money not scarce?" - Ralph Waldo Emerson 2010 Mid -Year Overview - Citywide 2010 Budget vs. YTD Actuals Citywide Budget YTD % Left Revenues 96,161,161 45,513,136 527% Expenditures 99,414,667 41,845,609 Rev. - Exp. (3,253,506) 3,667,527 /w The majority of this is related to capital projects 8/3/2010 4 2010 Mid -Year Overview - General Fund 2010 Budget vs. YTD Actuals General Fund Budget YTD % Left Revenues 17,050,512 8,621,360 49.4% Expenditures 17,240,532 8,495,322 50.7% Rev. - Exp. (190,020) 126,038 General Fund Revenue Sources Total GF Revenue - $17,050,512 Licenses & Fines/ Permits Forfeitures 2% Misc Intergovt 2% 2% Transfers In 4% % Total Taxes - $10,372,085 Phone Other Taxes 2 whoTaxes: Collected 52% thru June I 8/3/2010 5 CHALLENGES: • Local Businesses have Closed or Moved • Economy is Still in Recession • Unemployment Remains High • Consumer Confidence Remains Low • Cyclical Construction Pattern Sales Tax $3,500,000 - — -- - p $3,250,000 V G1147i $3,000,000 O (3Ii cy�,l U $2,750,000 --- - - - $2,500,000 f/! d _ iC $2,250,000 $2,000,000 -------- — 01 00 00 00 O^ Ory SP Off` O� or° 6 eti '63'0 'O do do '0 f yo �0 0,a� ,�o Sales Tax ❑ We estimate ending 2010 with a 3% reduction in sales tax revenue from 2009 ❑ This is a loss of almost $85,000 in the General Fund from last year.. . ❑ ...and a loss of nearly $700,000 or 20% from 2007. GF Revenues - Property Tax ❑ 2nd largest revenue source in GF at 20.5% of operating budget ❑ Prior years growth was related to new construction, which has slowed significantly For 2011, the limit is 2% (since no increase in 2L . , 8/3/2010 7 CHALLENGES: • More Accounts in Collections • NO Growth in Customer Base • Federal & State Mandates Increasing • Closure & Furlough of Businesses • Unpredictable Weather 2010 Utility Tax Revenue 1,600,000 A 59.0% 1,600, 000 59.77°' 1,400,000 57.0% 1,200,000 54.5% 55.0% VG�1 1,000,000 52.1% 53.0% d 800,000 V 48.8% A. A 51.0% V 600,000 to'. 47,5% I 50.7% 400,000 it 49.0% 200,000 I (�1 �__l L f- ' `— 45.0% m�e� o�5 r6 avec eGti�o Fri �a�e� `eo yie y-0 12010 Budget 1 2010 Actual *,% Collected 8/3/2010 Investment Income Community Development Revenue Community Development Revenue thru June 10 vs. 09 Revenue Source 2010 2009 %variance Building Permits $ 43,758 $ 71,667 -389% Plumbing Permits 4,725 6,962 -32 1% Mechanical Permits 8,026 8,527 -59% Sign Permits 1,833 1,137 612% Plan Checking Fees 30,688 91,212 -664% Planning Permits 2,140 3,780 -434% Zoning Fees 2,713 5,525 -509% Total Revenue $ 93,883 $188,810 -50.3% Through June, planning and permit revenue is down 50%o compared to the same period in 2009. Major Changes - 2010 vs. 2007 ❑ Lost Revenue — $1.2 M o Sales Tax o Interest o Building/Planning Permits & Fees Major Changes - 2010 vs. 2007 ❑ Increased Expenditures — $1.5 M o PERS Costs - Rates varied from 5.3% to 8.1 % o Court & Jail Costs - $166K increase o COLA - Nearly 10% increase over 3 years o Medical Benefits - 35% increase o Additional Regulations o Support to Medic I - $60K o PenCom charges - $50K o Increased cost of equipment operation (gas) 8/3/2010 W] General Fund Expenditures General Fund Expenditures ❑ Don't Forget o Seasonal Activities (parks, building permits) ❑ Personnel expenditures on target with 48.5% of budget expended through June 8/3/2010 11 2010 % of GF Spent YTD Budget Expenditures $ % Personnel $12,447,654 722% $ 6,035,984 485% Supplies 600,787 35% 300,422 500% Charges for Services 2,277,713 132% 973,775 428% Distnct Court 120,000 07% 60,480 504% County Jail 440,000 26% 244,177 555% Contribution to PenCom 189,674 1 1% 94,838 500% Transfers 1,164,704 68% 785,646 675% Total $17,240,532 1000% $ 8,495,322 493% General Fund Expenditures ❑ Don't Forget o Seasonal Activities (parks, building permits) ❑ Personnel expenditures on target with 48.5% of budget expended through June 8/3/2010 11 "There is no use talking about the problem unless,you talk about the solution." Betty White What Challenges are we Facing? Cities and counties cannot afford to sus am" the services they provide 8/3/2010 12 Solutions to Current Challenges Budgeting for Priorities ❑ City needs to determine goals of community o Citizen survey o Input at Council meetings o Budget Town Meeting o Council at Farmers Market ❑ Use those results to prioritize programs provided to citizens Budgeting for Priorities Steps to Successful Prioritization ❑ Determine Results - 2010 ❑ Clarify Result Definitions - 2010 ❑ Identify Programs and Services - 2010 ❑ Value Programs Based on Results - 2011 ❑ Allocate Resources Based on Priorities - 2011 8/3/2010 13 • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds • Internal Service Funds 8/3/2010 14 2010 YE Estimate - General Fund Revenues Expenditures Net Change in Fund Balance Fund Balance -Beginning Fund Balance -Ending 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 17,114,571 17,050,512 8,621,360 17,030,1401 17,239,443 17,240,532 8,495,322 17,199,029 (124.872) (190.020) 126.038 (168.889) 4,398,023 4,273,151 4,273,151 4,273,151 4,083,131 4,1,04„ 262 ReseFul'Ies' are ezp'elcted' . f 'k1111IIIII91'11 h{�'Wp�RNCu— PdltlllulNlNilINIr'° ;I to`dec�'r lllalsgetolIR'$4,-1IM:b'y" ,III': ;. ... { vthe'eridtof 2010 General Fund Summary For 2010 year-end, we estimate: o Revenues to be within budget o Expenses to be under budget by $40K 8/3/2010 15 • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds • Internal Service Funds Lodging Tax Fund Revenues Expenditures Net Change in Fund Balance Fund Balance -Beginning Fund Balance-Endi LODGING TAX 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 487,341 476,261 122,382 476,261 584,034 760,551 491,956 760,551 464,947 368,254 368,2541 368,254 83,964 83,964 8/3/2010 16 Street Fund Street Fund - Revenues REVENUES Property Tax Gas Taxes Transfer from General Fund Transfer from SW Collections Interfund Charges (Stormwater) Interest Miscellaneous Total 2010 2009 2010 As of Projected $ Actual Budget 6/30/2010 12/31/2010 enues 1,402,655 1,662,625 950,079 1,662,625 enditures 1,480,779 1,801,995 889,064 1,823,780 Change in Fund Balance 78,124 139,370 61,015 161,155 d Balance -Beginning 666,238 588,114 6,790 588,114 d Balance -Ending 588,114 448,744 146% 426,959 Street Fund - Revenues REVENUES Property Tax Gas Taxes Transfer from General Fund Transfer from SW Collections Interfund Charges (Stormwater) Interest Miscellaneous Total 2010 % of Street Collected YTD Budget Revenues $ % $ 482,299 290% $ 299,742 62 1% 435,853 262% 198,112 455% 180,000 108% 90,000 500% 150,000 90% 75,000 500% 388,314 234% 278,934 718% 15,859 10% 6,790 428% 10,300 06% 1,501 146% $ 1,662,625 1000% $ 950,079 57 1% � ��ilr " v u" � , ny1��V���„�� r ,'=-i,. �� ��'a' 91V'Vpollivl,11;idvl'��I71il„;I,', igl,l��p,,llw���:§' "�I�,ij'indl+^0ulllll�liil6 ,.. er' iofl,,lyd'Venues, collelcted': The Street: Fulid'Is on target wlth�;ave,rlSQl,/o I I IVVgI'Inlq'' L 8/3/2010 17 Street Fund - Gas Tax Revenue Gas Tax Revenue Year Distributed Amount $ per capita 2005 396,108 21.33 2006 434,257 23.20 2007 459,652 24.19 2008 435,257 22.82 2009 417,035 22.21 maro 35;853. 2010 Budget 4' 22.63 llli " Me ha"ve"'colledte'd1$198',1:12, or ;'P;I, :H,a'ntr4°5illl'+'5ao/ryrool�'ll�lNdIoII�ilgIlryhpll,llti�,lltblrhlls4wd'lvlglryNlitl.,le� te�d4ll�,e e Y „Pa�imlJIM 01H u 01H"1� VIuistdrtcallye(2004=2009)weww�: 5..,wewem�ghMll'9rl,1rl1ll�e�l, l , ,etllU fill,at44.4?&,througune. ' NINtl'Nl I PhVI'�ro,- Street Fund - Expenditures Total $ 1,801,995 100 0% $ 889,064 493% 8/3/2010 18 2010 % of Street Spent YTD EXPENDITURES Budget Expenditures $ % Personnel $ 990,910 550% $ 467,966 472% Supplies 219,950 122% 70,378 320% Charges for Services 441,135 245% 200,720 455% Transfer to CIP (paving) 150,000 83% 150,000 1000% Total $ 1,801,995 100 0% $ 889,064 493% 8/3/2010 18 Economic Development Fund CULTURAL RESOURCES FUND ECONOMIC DEVELOPMENT 2009 2010 As of Projected 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 Actual Budget 6/30/2010 12/31/2010 6,895 Revenues 427,944 253,114 129,018 253,114 Expenditures 272,840 862,338 159,743 861,758 Fund Balance -Beginning 339,863 482,751 Net Change in Fund Balance 155,104 609,224 30,725 608,644 Fund Balance -Ending 482,751 151,232 150,654 Fund Balance -Beginning 6,396,002 6,551,106 6,551,106 - Professional Services including statistical probability, Fund Balance -Ending 6,551,106 5,941,882 5,942,462 Primary 0.5 FTE Expenditures include: planning & Rayonier property development ServiceHarbor contractsPADA, Cultural Resources Fund CULTURAL RESOURCES FUND 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 Revenues 292,281 6,895 5,311 6,895 Expenditures 149,393 338,414 115,251 338,992 Net Change in Fund Balance 142,888331,519 109,940 332,097 Fund Balance -Beginning 339,863 482,751 482,751 Fund Balance -Ending 482,751 151,232 150,654 Primary Expenditures include: 1 FTE - Professional Services including statistical probability, ,L -geomorphology, K9 forensics -A 8/3/2010 19 REST Funds 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 REET Funds 2,160,942 1,888,960 1,016,849 2,140,795 2,333,132 2,182,764 2009 2010 As of Projected (140,471) (246,814) Actual Budget 6/30/2010 12/31/2010 736,124 Revenues 264,350 254,695 106,246 254,695 Expenditures 553,490 151,812 9,343 151,812 Net Change in Fund Balance 289,140 102,883 96,903 102,883 Fund Balance -Beginning 885,496 596,356 596,356 Fund Balance -Ending 596,356 699,239 699,239 Primary Expenditures .• Debt Service for: Drive Reconstruction Street.•••y Culvert Reconstruction 81h Street Reconstruction PenCom Fund Revenues Expenditures Net Change in Fund Balance Fund Balance -Beginning Fund Balance -Ending FUND 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 2,160,942 1,888,960 1,016,849 2,140,795 2,333,132 2,182,764 1,157,320 2,387,609 (172,190) (293,804) (140,471) (246,814) 908,314 736,124 736,124 736,124 442,320 (_ 489,310 Estimated to use nearly $250K in fund balance in 2010. This will result in less than $500K in reserves remaining for the future. 8/3/2010 20 Criminal Justice Fund expenmtures Net Change in Fund Balance Fund Balance -Beginning Fund Balance -Ending 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 238,096 256,484 115,530 256,484 270,000 235,000 117,502 235,000 31,904 21,484 1,972 21,484 341,181 309,277 309,277 309,277 330,761 330,761 Electric Utility Rural Economic Development Fund Revenues Expenditures Net Change in Fund Balance Fund Balance -Beginning Fund Balance -Ending 2009 2010 As of Projected Actual Budaet 6/30/2010 12/31/2010 54,964 54,836 27,991 54,836 25.000 50.000 12.502 50.000 227,427 257,391 257,391 257,391 262,227 262,227 8/3/2010 21 Port Angeles Housing Rehab Fund RECREATIONAL ACTIVITIES 2009 2010 PORT ANGELES HOUSING REHAB Actual Budget 6/30/2010 12/31/2010 Revenues 402,013 402,932 206,942 402,932 2009 2010 As of Projected 191,859 405,280 Net Change in Fund Balance 21,454 2,428 Actual Budget 6/30/2010 12/31/2010 100,794 122,248 122,248 Revenues 251,352 521,655 65,309 521,655 F_ Expenditures 285,392 730,300 125,699 730,300 Lodging Tax Fund support -User Fees ($178K) Net Change in Fund Balance 34,040 208,645 113,571 208,645 Fund Balance -Beginning 428,186 394,146 394,146 Fund Balance -Ending 394,146 185,501 185,501 Revenues & Habitat forgrant Expenditures are related to: & City match Recreational Activities Fund RECREATIONAL ACTIVITIES 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 Revenues 402,013 402,932 206,942 402,932 Expenditures 380,559 405,360 191,859 405,280 Net Change in Fund Balance 21,454 2,428 15,083 2,348 Fund Balance -Beginning 100,794 122,248 122,248 Fund Balance -Ending 122,248 119,820 119,900 F_ General• Revenues include:0 support ($170K) I Lodging Tax Fund support -User Fees ($178K) 8/3/2010 22 Miscellaneous Funds MISCELLANEOUS FUNDS' The majorityof 2009 2010 As of Projected fund Actual Budget 6/30/2010 12/31/2010 balance Revenues 308,867 518,462 239,270 335,256 ($250K) is in Expenditures 333,373 510,100 228,554 326,894 the Net Change in Fund Balance (24,506) 8,362 10,716 8,362 Contingency Fund. Fund Balance -Beginning 422,620 398,114 398,114 Fund Balance -Ending 398,114 406,476 F 406,476 Miscellaneous. •' 2010 Reserves Program $12K Range 29K -DrugFirearms 11 Task Force .Senior Center Maintenance 61 K -Waterfront Trail ,!Contingency 37K 250K • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds • Internal Service Funds 8/3/2010 23 Debt Service Funds Revenues Expenditures Net Change in Fund Balance Fund Balance -Beginning Fund Balance -Ending 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 985,903 919,498 485,295 919,498 1,006,467 1,007,266 150,678 1,007,266 (20.564) (87.768) 334.617 (87.768) 1,031,619 1,011,055 1,011,055 923,287 • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds • Internal Service Funds 1,011,055 1 8/3/2010 24 8/3/2010 Capital Improvement Fund CAPITAL IMPROVEMENT FUND 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 Revenues 3,664,743 3,041,500 1,065,685 3,041,500 Expenditures 2,365,481 3,403,000 355,044 3,403,000 Net Change in Fund Balance 1,299,262 (361,500) 710,641 (361,500) Fund Balance -Beginning 712,101 2,011,363 2,011,363 Fund Balance -Ending 2,011,363 1,649,863 j 1,649,863 Fund balance is already designated for future capital projects. CI P Projects ❑ Approved in 2010 - Budget $426,250 o FEMA related projects o City Pier fire suppression ❑ Pending Projects — $187,000 o Dry Creek o Sidewalks/Streets ❑ Added in 2010 — $1,022,250 o Overlay o Race Street slide repairs 0 25 Capital Project Funds OTHER CAPITAL PROJECT FUNDS ' 2009 2010 As of Projected Actual Budget 6/30/2010 12/31/2010 Revenues 44,733 11,237 5,930 11,237 Expenditures 1,418,488 24,550 150,127 150,127 Net Change in Fund Balance (1,373,755) (13,313) (144,197) (138,890) Fund Balance -Beginning 1,756,169 382,414 382,414 Fund Balance -Ending 382,414 369,101 243,524 iproject funds include: 2010 ReServes,,,"'1,11 PropertyCapital .• Park Improvement $166,640 • -•- 11 - ••- 1Street Bridges• CIP • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds • Internal Service Funds 8/3/2010 Enterprise Funds What to look for in utilities: ❑ Is our customer base growing? ❑ How do our rates compare with other utilities? ❑ What is our delinquency ratio? ❑ Are we adequately meeting debt requirements? ❑ Are we meeting our operational requirements? Electric Fund ELECTRIC UTILITY FUND 2009 2010 As of Year -End Budget V30/20110 % left Revenues Operating 30,001,772 30,356,947 16,534,841 455% Capital 429 461 3 277 000 - i000% Total Revenues 30 30,431,233 33,633,947 16,534,641 508% Expenses Opera4ng 27,290,708 27,840,827 14,468,523 480% Capital 411,490 3852,000 89,524 974% Debt 425,066 541,350 97,466 820% Transfers 808 084 945 035 810 468 35 4% Total Expenses 2!,935,328 33,179,212 15,275,981 54 0% Revenue - Expenses 1,495,905 454,735 1,258,660 Cash • Restncted 2,403,369 2,217,603 • • . • ' Cash -Unrestricted 5,158,092 5,798,593 . • ��• serves over •00customers -Residential rates are 5.82 cents/ kWh, plus base rate of $11 /mo. Af 8/3/2010 27 Electric Conservation Fund ELECTRIC CONSERVATION FUND 2009 2010 As of Year -End Budget 6/30/2010 % left Revenues 2009 Transfers/Interest 494,428 763,363 241,505 684% Capital NIA Total Revenues 494,428 763,363 241,505 684% Expenses RevenuesPPP Operating 794,715 1,275,204 295,537 768% Capital - - N/A Debt - N/A Transfers 70,000 N/A Total Expenses 864,715 1,275,204 295,537 768% Revenue -Expenses (370,287) (511,841) (54,032) Cash - Unrestricted 884,943 373,102 637% • Primary expense is conservation grants Expenses Water Fund WATER FUND 2009 2010 As of Year -End Bud et 161301201 0 % left RevenuesPPP Operating 5,453,108 5,710,699 2,745,712 51 9% _ • Capital 246,840 2,351,765 179 773 924% Total Revenues 5,699 948 8,062,464 2 925 485 637% Coverage Expenses Ratio • Operating 3,577,471 4,229,818 1,881,953 555%- Capital 228,553 2,501,000 22,659 99 1% Debt 716,348 796,572 82,751 896%stormwater Transfers 528,817 191,228 113,439 407% 1 • 2009 Total Expenses 5,051,189 7 718 618 2,100,802 72 8% • 1 Revenue - Expenses 648,759 343,846 824,683 Cash - Restricted 219,623 - Cash- Unrestricted 2,690,753 3,254,222 -Utility serves almostIN 111 residential and 1,300 •customers -Average monthly • •73 (based on e^ property using 624 CF) 8/3/2010 'R: Water Treatment Plant Fund Wastewater Fund 2009 2010 As of Year -End Budget 6/30/2010 % left Revenues Operating 8,183,691 163,765 89,424 454% Capital 757,875 1,113,000 286 250 N/F Total Revenues 8,183,691 163,766 89,424 46 49 Expenses Operating - - - N/F Capital - - - N/F Debt - - - N// Transfers 223,263 180,217 180,217 00% Total Expenses 223,263 180,217 180,217 0.09 Revenue - Expenses 7,960,428 (16,452) (90,793) Cash - Restricted 1,100, 000 1,100, 000 Cash - Unrestricted 6,818,562 6,802,110 Wastewater Fund 8/3/2010 29 2009 2010 As of Year -End Budget 613012010 % left Revenues Operating 6,175,866 6,818,012 3,200,759 53 1 Capital 757,875 1,113,000 286 250 743% Total Revenues 6,933,741 7,931,012 3,487,009 56 0 Expenses Operating 3,412,591 3,827,142 1,742,476 545% Capital 1,008,881 2,464,500 657,076 733% Debt 1,055,092 1,181,236 141,703 880%, Transfers 121,581 118,883 67,222 435% Total Expenses 5,598,145 7,591,761 2,608,477 656% Revenue - Expenses 1,335,596 339,251 878,532 Cash -Restricted * 7,812,976 6,851,664 Cash -Unrestricted 3,521,817 4,822,380 The majority of the restricted cash if for the CSO project 8/3/2010 29 Solid Waste Collections Fund Solid Waste Transfer Station Fund 2009 2010 As of Year -End Budget 6/30/2010 %left Revenues Operating 3,274,988 3,204,372 1,645,119 487% Capital - N/A Total Revenues 3,274,988 3,204,372 1,646,119 4871% Expenses Operating 3,235,089 3,342,644 1,550,209 536% Capital - - - N/A Debt - - - N/A Transfers (Street) 150,000 150,000 75,000 500% Total Expenses 3,386,089 3,492,644 1,625,209 53.6° Revenue -Expenses (110,101) (288,272) 19,910 Cash - Unrestricted 3,357,929 3,069,657 Solid Waste Transfer Station Fund 8/3/2010 30 2009 2010 As of Year -End Budget 6/30/2010 % left Revenues Operating 4,896,515 4,484,302 2,504,835 441% Capital - N/A Total Revenues 4,896,6115 4 484 302 2,604,836 44 1% Expenses Operating 4,628,918 4,562,039 1,965,144 569% Capital - - - N/A Debt 753,344 753,345 313,894 583% Transfers N/A Total Expenses 6,382,262 5315 384 2,279,038 57.1% li Revenue - Expenses (485,747) (831,082) 225,797 Cash - Restricted 3,645,259 3,620,645 Cash • Unrestricted 2,641,800 1,835,332 8/3/2010 30 Stormwater Fund Medic••- Operating 1,392,701 1,424,020 679,405 STORMWATER FUND Capital N/A 2009 2010 As of 1,392,701 1,424,020 679,405 52.3% use nearly $40K Year -End Budget 613012010 % left Revenues in reserves in Operating 1,367,272 1,500,073 705,048 530% Operating 743,287 758,498 454,533 401% _ � • Capital - 1,000,000 - 1000% Transfers Total Revenues 743,287 1,768,498 454 533 7472%• - • - Expenses Revenue - Expenses 25,429 (76,053)[._ (36 Ratio • Operating 402,967 696,982 406,095 417% Capital 51,684 458,000 6,341 N/A _ • Debt - 40,121 - 1000% Stormwater Transfers (CIP) 3,142 9.500 1000% i 2009 Total Expenses 467,793 1,204,603 412 436 65 8% A 6.02 Revenue- Expenses 285,494 553,895 42,097 Cash - Restricted - 675,000 Cash- Unrestricted 723,982 602,877 -Rates•11 • for residentialproperties Medic I Fund 2009 2010 As of Year -End Budaet 6/30/2010 %left Revenues Operating 1,392,701 1,424,020 679,405 523% Capital N/A Estimated to Total Revenues 1,392,701 1,424,020 679,405 52.3% use nearly $40K Expenses in reserves in Operating 1,367,272 1,500,073 705,048 530% 2010. Capital - - 10,564 N/A Debt - - - N/A Transfers N/A Total Expenses 1,367,272 1,500,073 715,612 623% Revenue - Expenses 25,429 (76,053)[._ (36 Cash - Restricted 30,602 68,955 Cash -Unrestricted 114,406 - _ _ _ _ _ _ • _ 8/3/2010 31 • General Fund • Special Revenue Funds • Debt Service Funds • Capital Project Funds • Enterprise Funds • Internal Service Funds Internal Service Funds Activitv through June 2010 ❑ Equipment Services a Spent 43% of budget through June (including 62% of capital) ❑ Information Technology o Spent 32% of budget o Majority of Professional Services scheduled for 2nd half of year ❑ Self Insurance o Spent 48% of budget 8/3/2010 32 Fine Arts Center ❑ Revenues o To date, collected 47% of budget o Includes $24,750 transfer from General Fund ❑ Expenditures o Spent 38% through June o Budget will be amended to reflect departure of contract marketing employee 8/3/2010 33 Building the 2011 Budget ❑ Budget Challenges o Lost revenue sources o Threats to future revenue sources o Cost of benefits continues to increase o Unpredictable cost of fuel core seMF"e' S 4 o i 'Ib -m Lost Revenue Sources Over the last 10 years, the City has: ❑ LOST approximately $2M in ongoing revenue o Motor Vehicle Excise Tax o Sales Tax o Gambling Taxes o Utility Taxes (Rayonier closure) n Closure of mayor businesses and retail shops o Investment Interest o Construction o Property Taxes due to limitations on growth rates (from 6% to 2% to 11%) ❑ Absorbed additional charges, services and mandates of over $1 M o District Court o Jail Costs o Prosecution 8/3/2010 34 Ongoing Revenue Challenges ❑ Threats to Future Revenue Sources o Consumer confidence in spending o Unemployment o Lower Level of Construction Activity o Voter Approved Initiatives Need to Evaluate and Prioritize ❑ What are the community goals and priorities? ❑ How are resources being allocated? ❑ Are we achieving the intended results? ❑ Are we efficient? ❑ Budget policy or objectives achieved? ❑ Capital projects completed o On-time? o Within budget? 8/3/2010 35 What's Next? ❑ July 27 Town Meeting on Budget ❑ August 16 Citizen Surveys Due ❑ August 31 Budget Workshop on Survey Results, Goals & Priorities N 4 I I � I I III II I IIIII�I I IgBI ��� . •E„ II tll IBI I+ BI ul II � �i B°udgeltilllrig fbnl�IIpIIP°ror�t�Iels 10 QUESTIONS? 8/3/2010 36 • C Monthly Financial Update .TUNE 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. In the General Fund, the three largest revenue sources are at or slightly above budgeted levels. Utility tax collections are at 52% of budget, slightly above target for this point in the year. Sales tax is at 48% collected, and historically has been just under 47% collected through June. Property tax collections are at 54% collected at the mid point of 2010. We are optimistic these trends will continue. 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. 2010 _ Actual Budget % 8,621,483 17,050,512 50.6% 8,495,295 17,240,532 49.3% 126,188 (190,020) However, it is important to nate that traditional funding sources such as the gas tax remain stagnant and the Street Fund instead is forced to rely on interfund charges {from Stormvaater) as a major revenue source. Through June, Street Fund expenditures are 2% lower than 2009, primarily due to the timing of projects and vacant positions not being filled immediately. With 50% of the year completed, we are above target with revenues 57.1% of In the Street Fund, revenues budget collected} and expenditures collected are up 10% from 2009. (49% spent) in the Street Fund. 950,079 1,662,625 57.1 % 889,064 1,801,995 49.3% 61,015 (139,370) Due to timing issues with certain revenues and expenditures, some monthly comparisons will be skewed. The most accurate com- parisons take place at year end, when all revenues and expenditures have been reconciled for the year. 2010 Actual 2010 Budget Gas Tax $ 798,112 $ 4.35,853 45% collected in 2070 43 % collected in 2009 REET $, 98,596 $ 340,000 41 % collected in 2010 49% collected in 2009 Sales Tax Revenue is down. 3% through. Tune 2010 compared to the same period last year. To date, we are on. target with 48% of budget collected. Community & Economic Development Revenue Through June (50% of the year com- pleted) all utilities are on target to reach their budgeted revenue by the end of • the year. The Electric Utility has col- lected 54% of the budget which com- pares favorably to the average historical level of 51%. In the Water and Waste- water Funds, the majority of collections have historically taken place in the sec- ond half of the year, similar to 2010 col- lection levels. The stormwater collection rate is nearly 60% because rates are paid with property taxes and a signifi- cant number of citizens pay the lump sum at the beginning of the year Through June, we have collected 52% of all budgeted utility tax revenues, slightly higher than where we expect to be at this point in the year. Community Development Revenue 2010 Utility Tax Revenue M 101 vs. 09 Revenue Source 1,800,000 2009 % variance Building Permits $ 43,758 1,600,000 -38.9% Plumbing Permits 590% 6,962 -321% Mechanical Permits 8,026 59.7°/ -59% Sign Permits 1,833 1,400,000 61.2% Ian Checking Fees 57.0% 91,212 -66.4% tanning Permits 2,140 4.5% -43.4% � 2,713 1,200,000 -509% otal Revenue 550% $188 810 w .2 v 1,000,000 52.1% -53.0% 'O 800.000 48.8%° 51.0% 0 U 600.000 47 5% 0 50.7% --490% 400,000 200,000 470% 45.0% -1 10, � 5 2010 D 2010 Budget MM 2010 Actual A % Collected Community & Economic Development Revenue Through June (50% of the year com- pleted) all utilities are on target to reach their budgeted revenue by the end of • the year. The Electric Utility has col- lected 54% of the budget which com- pares favorably to the average historical level of 51%. In the Water and Waste- water Funds, the majority of collections have historically taken place in the sec- ond half of the year, similar to 2010 col- lection levels. The stormwater collection rate is nearly 60% because rates are paid with property taxes and a signifi- cant number of citizens pay the lump sum at the beginning of the year Through June, we have collected 52% of all budgeted utility tax revenues, slightly higher than where we expect to be at this point in the year. Community Development Revenue M 101 vs. 09 Revenue Source 2010 2009 % variance Building Permits $ 43,758 $ 71,667 -38.9% Plumbing Permits 4,725 6,962 -321% Mechanical Permits 8,026 8,527 -59% Sign Permits 1,833 1,137 61.2% Ian Checking Fees 30,688 91,212 -66.4% tanning Permits 2,140 3,780 -43.4% Zoninq Fees 2,713 5,525 -509% otal Revenue $ 93 883 $188 810 -SCl,3°I' $45,000 '$80,000 Lodging Tux Revenue $65,000 By Month $50,000 $35,000 $20,000 $5,000 Jan Feb Mar Apr May June July Aug Sept oct Nov Dec 2009 Actual2010 Bud Lodging Tax revenue collected through June 2010 is up 12% from the some period in 2009_ We have collected 25.510 of budget. historically we have collected 26.5% of budget through June. Don't Forget the seasonal effect on Building Permits i $45,000 '$80,000 Lodging Tux Revenue $65,000 By Month $50,000 $35,000 $20,000 $5,000 Jan Feb Mar Apr May June July Aug Sept oct Nov Dec 2009 Actual2010 Bud Lodging Tax revenue collected through June 2010 is up 12% from the some period in 2009_ We have collected 25.510 of budget. historically we have collected 26.5% of budget through June. C CITY OF ORT NGELES _ WASH ING TO N, U.S.A. CITY COUNCIL MEMO DATE: AUGUST 3, 2010 TO: CITY COUNCIL FROM: DAN MCKEEN, FIRE CHIEF SUBJECT: FIRE DEPARTMENT CONSOLIDATION Summary: After nearly two years of study, the Port Angeles Fire Department / Clallam County Fire District #2 Consolidation ad hoc committee has recommended that the two agencies move forward with the effort to consolidate and form a new Regional Fire Authority. The Clallam County Fire District #2 Commissioners have approved a resolution to move forward. The Port Angeles City Council has been presented with a copy of the feasibility study for review. At the August 17 meeting, the Council will be asked to decide whether or not to adopt a resolution to move forward with the consolidation process. Recommendation: Conduct work session. Background/Analysis: A number of issues have prompted the effort to explore the consolidation of Clallam County Fire District #2 with the Port Angeles Fire Department. For Fire District #2, the motivation is to improve service delivery for their citizens. Currently, the District relies entirely upon volunteers for all fire suppression services and upon volunteers and a private ambulance service for emergency medical services. The volunteers are a well-trained, highly motivated and dedicated group, however they are still volunteers. Their response is not guaranteed and they are being asked to respond to an increasing volume of calls. The private ambulance service is a professional organization. However, they have competing priorities and they are often unavailable for response. The District has an increasing annual call volume. These challenges, in part, are prompting the need to make fundamental changes to the operating structure of the District. On the part of the Port Angeles Fire Department, the need is to continue to provide the level of service that our citizens are currently receiving. This is becoming increasingly difficult, especially considering that the Department has not added personnel resources for nearly 20 years. In addition, there is a very real need to ensure long-term financial stability for the Department — particularly during this difficult time when the City is faced with significant financial challenges. Over the past ten years, both agencies have undertaken innovative measures to make the best use of available resources in order to meet the above -stated needs. We have combined our training • programs, expanded mutual and automatic aid agreements, combined volunteer personnel D-3 resources, agreed to share reserve apparatus and even consolidated our administrative offices i into a single facility. All of these actions have been prompted by a continuing desire to provide the best possible service in the most effective, cost-efficient manner. Although these measures have helped, they have not completely solved the challenges faced by either agency. We view consolidation as the next logical step. The Port Angeles Fire Department / Clallam County Fire District #2 Consolidation Feasibility Study is the culmination of a nearly two year process that examined all of the various issues to be considered as a part of the potential consolidation of the two agencies. The Consolidation Committee has recommended that we continue with the consolidation process, with the Regional Fire Authority as the preferred consolidation method. The Clallam County Fire District #2 Commissioners approved a resolution to move forward. In addition, the Port Angeles Public Safety Advisory Board has met, reviewed the study, and unanimously voted to forward to the City Council a favorable recommendation to take the steps as appropriate for the formation of a Regional Fire Authority. A copy of the feasibility study has been provided for your review. Your review of the feasibility study, coupled with information provided during the Council work session, will provide the basis for a subsequent decision whether or not to approve a resolution to form a Planning Committee to continue the consolidation process. A resolution will be provided at the August 17 regular City Council meeting. Although not required by statute, we recommend that the Council accept public corriment during this`meeting. If the City Council approves the resolution, a Consolidation Planning Committee made up of • elected officials would be formed, and ultimately a ballot measure would be drafted for presentation to the voters. D-4 0 is 0 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington July 15, 2010 CALL TO ORDER- Mayor Di Guilio called the special meeting of the Port Angeles City Council to SPECIAL MEETING: order at 11:00 a.m. ROLL CALL: Members Present Mayor Di Guilio, Councilmembers Collins, Downie, Kidd, and Mania. Members Absent. Deputy Mayor Perry and Councilmember Nelson. CLALLAM COUNTY Council attended the Clallam County Economic Development Council meeting to ECONOMIC listen to a presentation by Charlie Brandt, Battelle Memorial Institute Director, on DEVELOPMENT renewable and alternative energy on the North Olympic Peninsula. No Action was COUNCIL taken. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 1:00 p.m. Dan Di Guilio, Mayor Janessa Hurd, City Clerk F-1 CITY COUNCIL MEETING Port Angeles, Washington July 20, 2010 CALL TO ORDER- Mayor Di Guilio called the regular meeting of the Port Angeles City Council to REGULAR MEETING: order at 6:03 p.m. ROLL CALL: Members Present Mayor Di Guilio, Deputy Mayor Perry, Councilmembers Collins [arrived at 6:06 p.m.], Downie, Kidd, Mania, and Nelson. Members Absent None. Staff Present Manager Myers, Attorney Bloor, Clerk Hurd, G. Cutler, T. Gallagher, D. McKeen, Y. Ziomkowski, B. Smith, P. Lusk, T. Partch, and D. Bellamente. PLEDGE OF The Pledge of Allegiance to the Flag was led by Councilmember Downie ALLEGIANCE: CEREMONIAL 1. Korean War Remembrance Week MATTERS/ PROCLAMATIONS/ Mayor Di Guilio presented a proclamation designating the week of July 25-31, & EMPLOYEE 2010 as Korean War Veterans Remembrance Week to Gerry Retella and the other RECOGNITIONS: Korean war veterans present. 2. Police Department Volunteer Recognition Police Chief Gallagher recognized the following Police Department volunteers for their number of volunteer hours donated in the past year: Russ Fish, James Walsh, Marilyn Walsh, Betty Banick, Allen Banick, Charles Devoney, Gary Marler, Glen McFall, Robert Agee, and Kristen Pendergrass. PUBLIC COMMENT: Marilyn Harbaugh — 312 W. 5th St. spoke against the current CSO plan, HarborWorks Development Authority, and purchasing the Rayonier property. John Ford, 174 Hoare Rd., spoke against funding the HarborWorks Development Authority, and presented a petition to Council opposing public funding for HarborWorks to buy or clean up the Rayonier property. Shirley Nixon, PO Box 178, announced an education forum on water in Sequim on August 11, 2010, at 7:00 p.m. She also spoke against the Utility Projects Bond Financing. Joyce Morden 734 W. 7th St., spoke regarding the new City of Port Angeles survey on the budget process and spoke against the HarborWorks Development Authority. Paul Lamoureux, 602 Whidby, spoke against the HarborWorks Development Authority and any public funding for the clean up of the Rayonier property. i F-2 r • • • • CITY COUNCIL MEETING July 20, 2010 PUBLIC COMMENT: Jim Hallett, 1411 S. Golf course Rd., spoke in favor of the HarborWorks (Cont'd) Development Authority and stated that the PDA was against any public funding for clean up of the Rayonier property. Nelson Cohen, spoke against the HarborWorks Development Authority and any public funding for the clean up of the Rayonier property. CITY COUNCIL Councilmember Nelson spoke regarding her attendance at the UAC meeting, Real REPORTS: Estate Committee Meeting, and her work at distributing the City's survey to the public. Councilmember Mania spoke regarding his attendance at the Shoreline Master Program/Harbor Resource Management Plan teleconference, the Fine Arts Center opening of the Safe Harbor exhibition, the Clallam County Economic Development Council meeting regarding the presentation on renewable and alternative energy on the North Olympic Peninsula, the Clallam Transit Board Meeting, and the North Peninsula Builders Association tour of recycling facilities in Tacoma and Seattle. He also spoke regarding his attendance at the meeting organized by Clea Rome to reduce the number of vehicle miles traveled in both Jefferson and Clallam County, and their plans to apply for a Federal TIGER grant. Councilmember Downie spoke regarding his attendance at the Clallam County Economic Development Council meeting regarding the presentation on renewable and alternative energy on the North Olympic Peninsula, the welcoming of the canoes from the tribal paddle journey at Hollywood beach, and invited staff and the public to visit the Center for Community Design. Deputy Mayor Perry spoke regarding his attendance at the Fine Arts Center opening of the Safe Harbor exhibition, the opening of the Lower Elwha Klallam Heritage Center, Parks Facilities Board meeting, the PA Forward Committee meeting, and his trip to Victoria where he attended AM Victoria's breakfast meeting. Councilmember Collins spoke regarding his attendance at the Real Estate Committee meeting, Parks Facilities Board meeting, the Clallam County Economic Development Council meeting regarding the presentation on renewable and alternative energy on the North Olympic Peninsula, the opening of the Lower Elwha Klallam Heritage Center, the Feiro Marine Life Center fundraiser, and he stated he will be volunteering in Neah Bay this upcoming weekend. Councilmember Kidd spoke regarding her attendance at the PA Forward meeting, her work on the Hurricane Ridge Road fundraising to keep the road open during the winter months, and her attendance at the opening of the Lower Elwha Klallam Heritage Center. Mayor Di Guilio spoke regarding his attendance at the Waterfront and Transportation project consultant interviews, and the Olympic Region Clean Air meeting in Olympia to discuss ways to reduce carbon footprints. 2 F-3 CITY COUNCIL MEETING July 20, 2010 WORK SESSION: 1. Utility Projects Bond Financing Finance Director Ziomkowski, Bond Underwrite Lindsey Sovde from Seattle Northwest Securities Corporation, and Bond Attorney David Thompson from K&L Gates LLP, conducted a presentation regarding the Water and Wastewater Utility Revenue Bonds 2010, and the Electric Revenue Bonds Series 2010. They used PowerPoint slides to present information regarding the financing options, bond overview, 2010 bond issues, and the calendar for adoption of these ordinances. Council discussion followed. Public Works and Utilities Director Cutler provided information regarding the bond process and the overall planning process that started last year. Council discussion followed. Mayor Di Guilio conducted a first reading of the attached Ordinances by title, entitled 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. 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 improvement 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. Attorney Bloor suggested Council make a motion to approve the continuation of the process as described and the sale of the bonds, and then bring the final bonds back at the August 3, 2010, regular Council meeting. It was moved by Collins and seconded by Perry to: Authorize the bond sales on August 2, and August 3, in order to take advantage of the favorable market conditions, and the final ordinance will be presented at the August 3, 2010, Council meeting. Motion carried 7-0. Break Mayor Di Guilio recessed the meeting for a break at 7:50 p.m. The meeting reconvened at 8:03 p.m. • 3 F-4 :7 • CITY COUNCIL MEETING July 20, 2010 LATE ITEMS TO BE None. PLACED ON THIS OR FUTURE AGENDAS: CONSENT AGENDA: It was moved by Perry and seconded by Downie to accept the Consent Agenda to include: 1.) City Council Minutes for June 8 and 29, July 6 and 13, 2010; 2.) Expenditure Approval List: 6/26/10 to 7/9/10 for $2,146,235.61; 3.) Electric Utility 2010 Resource Plan, Set Public Hearing; 4.) Bonneville Power Administration (BPA) Residential Demand Response Cooperative Agreement & Consultant Agreement Amendment; 5.) Consultant Agreement Amendment No. 3 for Commercial & Industrial Demand Response Grant Program; 6.) Energy Northwest Interlocal Agreement Modification No. 2 for the Morse Creek Hydroelectric Project; 7.) Consultant Selection for Storm Water Engineering Services; 8.) Lodging Tax Advisory Committee Appointments; 9.) College Substation witch Replacement, Project CL06-2010; 10.) Amendment to Friendship Diversion Contract. Motion carried 7-0. PUBLIC HEARINGS- 1. North Olympic Library Levy Lid Lift OTHER: Attorney Bloor stated that technically this was not a public hearing, but an Resolution No. 13-10 opportunity for the public to make comments regarding the proposed North Olympic Library Levy lid lift. Mayor Di Guilio opened up the meeting for public comment regarding the North Olympic Library Levy lid lift. The following individuals spoke in favor of the Resolution supporting the North Olympic Library Levy lid lift: Megan Tuttle, 119 7`" St., Patty Hannah, 292 View Ridge Dr., and Mr. Scranton, 519 E. Park Ave. Mayor Di Guilio asked if there were any individuals that wanted to speak against the Resolution, and no one responded. Mayor Di Guilio closed the public comment period. Councilmember Kidd inquired as to whether or not she should abstain from the vote because she rents a storage space to the Friends of the Library organization. Attorney Bloor stated she was not required to abstain from the vote on the Resolution. Mayor Di Guilio conducted a reading of the Resolution by title, entitled RESOLUTION NO. 13-10 A RESOLUTION of the City Council of the City of Port Angeles, Washington, in support of the North Olympic Library System Levy lid lift. It was moved by Mania and seconded by Collins to: Approve the Resolution as read by title. Following Council discussion, Motion carried 7-0. 4 F-5 CITY COUNCIL MEETING July 20, 2010 is PUBLIC HEARINGS- 2. Byrne Justice Assistance Federal Grant OTHER: (Cont'd) Police Chief Gallagher provided information regarding the Byrne Justice Assistance Federal grant application and introduced Deputy Chief Smith, who provided information regarding our collaborative efforts with Clallam County on the grant. Council discussion followed. Mayor Di Guilio opened the public hearing at 8:27 p.m. There being no public comment, the public hearing was closed at 8:27 p.m. It was moved by Perry and seconded by Nelson to: Direct staff to move forward with the grant application. Motion carried 7-0. WORK SESSION: 2. Storm Water Rate Reduction Incentives (Cont'd) Director Cutler provided information regarding the Storm Water Rate Reduction Incentive program and introduced Storm Water Utility Engineer Partch, who provided a PowerPoint presentation on the Incentive program. Council discussion followed. Mid -Year Finance Report / Finance Newsletter Manager Myers informed Council that the presentation would take approximately • 45 minutes and would need additional time for discussion. He asked Council if they would prefer to postpone the Mid -Year Finance Report until the August 3, 2010 Council meeting. Council discussion followed. Council agreed by consensus to postpone the Mid -Year Finance Report to the August 3, 2010 Council meeting. ORDINANCES NOT None. REQUIRING PUBLIC HEARINGS: RESOLUTIONS NOT None. REQUIRING PUBLIC HEARINGS: OTHER 1. Interlocal Cooperative Law Enforcement Agreement — Lower Elwha CONSIDERATIONS: Klallam Tribe (LEKT) Resolution No. 14-10 Police Chief Gallagher presented information regarding the Interlocal Cooperative Law Enforcement Agreement with the Lower Elwha Klallam Tribe. He explained that members of the tribe could not attend tonight because of the Paddle Journey. He also explained that there was a minor amendment to the agreement after the Tribe had passed their resolution. Attorney Bloor explained that these were minor formatting changes. s F-6 CITY COUNCIL MEETING July 20, 2010 n OTHER CONSIDERATIONS: Resolution No. 14-10 (Cont'd) PUBLIC HEARINGS — QUASI-JUDICIAL: FINANCE: Mayor Di Guilio conducted a reading of the Resolution by title, entitled RESOLUTION NO. 14-10 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. It was moved by Collins and seconded by Kidd to: Approve the Resolution as read by title, and authorize the Mayor to make minor modifications to the agreement. Motion carried 7-0. None. None. INFORMATION: Manager Myers directed Council to the reports included in the packet and discussed the Town Hall meeting scheduled for July 27, 2010, at 6:00 p.m., the budget survey results, the consultant interviews for the Waterfront and Transportation project, the fundraising efforts to keep Hurricane Ridge Road open during the winter months, the presentation by Charlie Brandt, Battelle Memorial Institute Director, on renewable and alternative energy on the North Olympic Peninsula at the Clallam County Economic Development Council meeting, and commended the Fire and Police Departments for controlling the recent Fire at Parker Paint. Council discussion followed, including questions regarding Nippon's Co -Generation project status. Council commended Director Ziomkowski's for receiving the Distinguished Budget Presentation Award. EXECUTIVE SESSION: None. ADJOURNMENT: Mayor Di Guilio adjourned the meeting at 9:03 p.m. Dan Di Guilio, Mayor C7 0 Janessa Hurd, City Clerk F-7 ,�•,,�,� r. ` r,.+ Date 7/28/2010 City of Port Angeles a„ City Council Expenditure Report }'' •��• "¢ From: 7/10/2010 To: 7/23/2010 Vendor Description Account Number Invoice Amount BELSON OUTDOORS INC JANITORIAL SUPPLIES 001-0000-237.00-00 -31.42 HEPBURN SUPERIOR HAND TOOLS ,POW&NON POWER 001 -0000-237.00-00 -21.76 Myrna Dueno LOOMIS DEPOSIT REFUND DUE 001-0000-239.10-00 50.00 Nikki Fairchild VBCC DEPOSIT REFUND FAIRC 001-0000-239.10-00 15000 Peninsula Mental Health CLUBHOUSE DEPOSIT REFUND 001-0000-239.10-00 50.00 Regina Williams CLUBHOUSE DEPOSIT REFUND 001-0000-239.10-00 50.00 Theresa Whitney CLUBHOUSE DEPOSIT REFUND 001-0000-239.10-00 50.00 Sandra Strafford SHOES FOR PKG ENF STRAFFO 001-0000-237.00-00 -13.18 WA STATE PATROL LIVE SCAN FOR JUNE 2010 001-0000-229.50-00 221.25 Division Total: $504.89 Department Total: $504.89 INTL INST MUNICIPAL CLERKS IIMC ANNUAL DUES - TERESA 001-1210-513.49-01 75.00 JACKSON'S SIGNS OFFICE DOOR LETTERING -A 001-1210-513.31-01 130.08 QWEST 07-05 A/C 3604523877817B 001-1210-513.42-10 1 16 07-05 A/C 3604525109623B 001-1210-513.42-10 1.16 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-1210-513.42-10 140.46 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-1210-513.42-10 2.24 WMCA -WA MNCPL CLERKS ASN WMCA ANNUAL DUES - TERESA 001-1210-513.49-01 7500 City Manager Department City Manager Office Division Total: $425.10 QWEST 07-05 A/C 3604523877817B 001-1220-516 42-10 0.23 07-05 A/C 3604525109623B 001-1220-516.42-10 0.23 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-1220-516.42-10 57.30 WA STATE PATROL WATCH CHECKS 001-1220-516.41-50 2000 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-1220-516.42-10 13.59 City Manager Department Human Resources Division Total: $91.35 INTL INST MUNICIPAL CLERKS IIMC ANNUAL DUES - JANESS 001-1230-514.49-01 25.00 PENINSULA DAILY NEWS LEGAL ADS 001-1230-514.44-10 54.86 QWEST 07-05 A/C 3604523877817B 001-1230-514.42-10 0.12 07-05 A/C 3604525109623B 001-1230-514.42-10 0.12 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-1230-514.42-10 4.61 WMCA -WA MNCPL CLERKS ASN WMCA ANNUAL DUES 001-1230-514.49-01 75.00 City Manager Department City Clerk Division Total: $159.71 City Manager Department Department Total: $676.16 UNITED WAY OF CLALLAM COUNTY UW -2010 Q2 HUMAN SRVCS FU 001-1390-519.49-71 14,062.50 City Manager Dept Community Service Division Total: $14,062.50 1 City Manager Dept Department Total: $14,062.50 QWEST 07-05 A/C 3604523877817B 001-2010-514.42-10 081 07-05 A/C 3604525109623B 001-2010-514.42-10 0.81 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-2010-514.42-10 57,35 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-2010-514.42-10 7.63 Finance Department Finance Administration Division Total: $66.60 • OLYMPIC STATIONERS INC PETTY CASH BOOKS 001-2023-514 31-01 8.37 F-8 Page 1 Date 7/28/2010 City of Port Angeles g" _ �„ City Council Expenditure Report • rf' From: 711012010 To: 7123/2010 Vendor Description Account Number Invoice Amount QWEST 07-05 A/C 36045238778178 001-2023-514.42-10 1.04 07-05 A/C 36045251096238 001-2023-514.42-10 1.04 UNITED PARCEL SERVICE Shipping Chgs pe 7-3 001-2023-514.42-10 10.30 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-2023-514.42-10 7.66 Finance Department Accounting Division Total: $28.41 CAPTAIN T'S LIGHTWEIGHT MESH MTR RDR 001-2025-514.31-11 99.64 QWEST 07-05 A/C 3604523877817B 001-2025-514.42-10 1.50 07-05 A/C 3604525109623B 001-2025-514.42-10 1.50 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-2025-514.42-10 15.28 WASHINGTON (OAST), STATE OF 2nd Qtr Unemployment 001-2025-514.20-60 4.84 Finance Department Customer Service Division Total: $122.76 UNITED PARCEL SERVICE Shipping Chgs pe 7-3 001-2080-514.42-10 84.37 Finance Department Reprographics Division Total: $84.37 Finance Department Department Total: $302.14 GREAT AMERICA LEASING CORP COPIER LEASE 001-3010-515.45-31 163.47 QWEST 07-05 A/C 3604523877817B 001-3010-515.42-10 0.69 07-05 A/C 36045251096238 001-3010-515.42-10 0.69 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-3010-515 42.10 57.30 (DIS), STATE OF RADIO & TELECOMMUNICATION 001-3010-515.42-10 18.10 •WASHINGTON WEST GROUP JUNE LEGAL RESEARCH 001-3010-515.31-01 368.10 Attorney Attorney Office Division Total: $608.35 CLALLAM CNTY SHERIFF'S DEPT JAIL BILL FOR JUNE, 2010 001-3012-598.51-23 32,889.39 Attorney Jail Contributions Division Total: $32,889.39 BLACK, JOHN D PLLC AKIN PCR16284-ARRAIGN 001-3021-515.50-90 30.00 AKIN PCR16284-DEF ATTY 001-3021-515.50-90 30.00 CLALLAM CNTY DIST 1 COURT JUNE COURT COSTS 001-3021-515.50-90 9,138.00 GREAT AMERICA LEASING CORP COPIER LEASE 001-3021-515.45-31 163.47 PAYNE LAW FIRM, PS, INC DEF ATTY,KEEND PCR16183 001-3021-515.50-90 277.00 DEF ATTY,ROENIG PCR 1630 001-3021-515.50-90 126.00 DEF ATTY, PCR15745 001-3021-515.50-90 138.00 QWEST 07-05 A/C 3604523877817B 001-3021-515.42-10 0.46 07-05 A/C 3604525109623B 001-3021-515.42-10 0.46 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-3021-515.42-10 5730 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-3021-515 42-10 6.15 WEST GROUP JUNE LEGAL RESEARCH 001-3021-515.31-01 368.10 Attorney Prosecution Division Total. $10,334.94 Attorney Department Total: $43,832.68 PENINSULA DAILY NEWS LEGAL ADS 001-4010-558.44-10 601.48 Shoreline Mgmt Adv 001-4010-558.44-10 215.10 QWEST 07-05 A/C 36045238778178 001-4010-558.42-10 0.87 07-05 A/C 3604525109623B 001-4010-558.42-10 0.87 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-4010-558.42-10 2865 F-9 Page 2 +¢ f I Date 7/28/2010 gr City of Port Angeles City Council Expenditure Report f }' "'••^`" From: 7/10/2010 To: 7/23/2010 • Vendor Description Account Number Invoice Amount WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-4010-558.42-10 42.93 Community Development Planning Division Total: $889.90 INTERNATIONAL CODE COUNCIL 2009 CODE BOOKS 001-4020-524 31-01 2,770.66 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-4020-524.31-01 49.32 QWEST 07-05 A/C 3604523877817B 001-4020-524.42-10 0.30 07-05 A/C 3604525109623B 001-4020-524.42-10 0.30 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-4020-524.42-10 6.12 Community Development Building Division Total: $2,826.70 QWEST 07-05 A/C 3604523877817B 001-4030-559.42-10 0.05 07-05 A/C 3604525109623B 001-4030-559.42-10 0.05 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-4030-559 42-10 731 Community Development Code Compliance Division Total: $7.41 Community Development Department Total: $3,724.01 JOBS AVAILABLE INC DISPLATY AD 062210 LATERA 001-5010-521.44-10 245.00 LINCOLN STREET STATION PKG SYSTMS PUB SAFETY,102 001-5010-521.42-10 10.42 Lempol LLC DAILY BULLETINS 080110-07 001-5010-521.49-01 2,700.00 PENINSULA DAILY NEWS LEGAL ADS 001-5010-521.44-10 19.75 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5010-521.31-01 173.92 QWEST 07-05 A/C 36045238778178 001-5010-521.42-10 1.85 07-05 A/C 3604525109623B 001-5010-521.42-10 1.85 • VERIZON WIRELESS 06-25 A/C 671402094-00001 001-5010-521.42-10 176.42 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-5010-521.42-10 62.05 Police Department Police Administration Division Total: $3,391.26 BLUMENTHAL UNIFORMS & EQUIP POLICE EQUIPMENT & SUPPLY 001-5021-521.20-80 8667 POLICE EQUIPMENT & SUPPLY 001-5021-521.31-11 41.08 POLICE EQUIPMENT & SUPPLY 001-5021-521.31-11 91.81 PACIFIC OFFICE EQUIPMENT INC OFFICE SUPPLIES, GENERAL 001-5021-521.31-01 250.79 OFFICE SUPPLIES, GENERAL 001-5021-521.31-01 92.68 PORT OF PORT ANGELES POLICE EQUIPMENT & SUPPLY 001-5021-521.49-90 157.50 QWEST 07-05 A/C 3604523877817B 001-5021-521.42-10 1.16 07-05 A/C 3604525109623B 001-5021-521.42-10 1.16 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-5021-521.42-10 524.99 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-5021-521.42-10 23.94 Police Department Investigation Division Total: $1,271.78 AIRPORT GARDEN CENTER POLICE EQUIPMENT & SUPPLY 001-5022-521.49-80 65.03 POLICE EQUIPMENT & SUPPLY 001-5022-521.49-80 -6503 BLUMENTHAL UNIFORMS & EQUIP POLICE EQUIPMENT & SUPPLY 001-5022-521.31-11 94.89 LINCOLN STREET STATION 1-WSP TOX LAB,1-MSVL LAB, 001-5022-521 42-10 35.86 93399,071410,WSP TOX LAB, 001-5022-521.42-10 27.17 OLYMPIC MEDICAL CENTER VENI ALO,CARM,DAWS,HIMMEL 001-5022-521.49-90 373.00 PACIFIC OFFICE EQUIPMENT INC OFFICE SUPPLIES, GENERAL 001-5022-521.31-01 140.12 OFFICE SUPPLIES, GENERAL 001-5022-521.31-01 38.79 F-10 Page 3 Date 7/28/2010 City of Port Angeles City Council Expenditure Report • '' From: 7/10/2010 To: 7/23/2010 Vendor Description Account Number Invoice Amount QWEST 07-05 A/C 3604523877817B 001-5022-521.42-10 3.24 07-05 A/C 3604525109623B 001-5022-521.42-10 3.24 SIRCHIE FINGERPRINT LAB TEST 05 -DRUGS NARK2005,PA 001-5022-521.31-01 107.45 UNITED PARCEL SERVICE Shipping Chgs pe 7-3 001-5022-521.42-10 5.46 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-5022-521.42-10 1,664.91 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-5022-521.42-10 33.92 Police Department Patrol Division Total: $2,528.05 Sandra Strafford SHOES FOR PKG ENF STRAFFO 001-5029-521.31-11 170.08 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 13.04 PACIFIC OFFICE EQUIPMENT INC OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 39.89 OFFICE SUPPLIES, GENERAL 001-5029-521.45-31 77.43 OFFICE SUPPLIES, GENERAL 001-5029-521.45-31 72.22 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-5029-521.31-01 183.32 OFFICE SUPPLIES, GENERAL 001-5029-521 31-01 273.32 QWEST 07-05 A/C 3604523877817B 001-5029-521.42-10 1.16 07-05 A/C 3604525109623B 001-5029-521 42-10 1.16 WASHINGTON (AGRICUL), STATE OF INSPECT OF SMALL SCALE,PR 001-5029-521.41-50 45.00 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-5029-521.42-10 10.93 Police Department Records Division Total. $887.55 • Police Department Department Total. $8,078.64 CANON USA, INC COPIER 001-6010-522.45-31 190.69 OLYMPIC STATIONERS INC SUPPLIES 001-6010-522.31-01 9.79 ENVELOPES, PLAIN, PRINTED 001-6010-522.31-01 9.76 PACIFIC OFFICE EQUIPMENT INC CANON COPIER 001-6010-522.45-31 50.22 PORT ANGELES FIRE DEPARTMENT SUPPLIES 001-6010-522.31-01 5.53 QUILL CORPORATION OFFICE SUPPLIES, GENERAL 001-6010-522.31-01 19.50 SUPPLIES 001-6010-522 31-01 93.46 QWEST 07-05 A/C 3604523877817B 001-6010-522.42-10 1 62 07-05 A/C 3604525109623B 001-6010-522.42-10 1.62 07-05 A/C 3604523877817B 001-6010-522.42-11 0.46 07-05 A/C 3604525109623B 001-6010-522.42-11 0.46 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-6010-522.42-10 57.57 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-6010-522.42-10 8.08 RADIO & TELECOMMUNICATION 001-6010-522.42-11 3.88 Fire Department Fire Administration Division Total. $452.64 ANGELES MILLWORK & LUMBER CO LUMBER 001-6020-522.31-02 19.47 LUMBER 001-6020-522.31-02 -0.68 BLUMENTHAL UNIFORMS & EQUIP CLOTHING & APPAREL 001-6020-522.20-80 11377 CAPTAIN T'S CLOTHING 001-6020-522.20-80 386.94 CLALLAM CNTY FIRE DISTRICT 2 AWARDS BANQUET 001-6020-522.31-01 163.00 ANNUAL CALIBRATION 001-6020-522.35-01 597.30 Kelly Ziegler REIMBURSE CLOTHING ALLOWA 001-6020-522.20-80 17.24 F-11 Page 4 i �s Date 7/28/2010 City of Port Angeles tl ell- City Council Expenditure Report ,i; From: 7/10/2010 To: 7/23/2010 • Vendor Description Account Number Invoice Amount PORT ANGELES FIRE DEPARTMENT REFRESHMENTS 001-6020-522.31-02 19.95 QWEST 07-05 A/C 3604523877817B 001-6020-522.42-10 1.50 07-05 A/C 3604525109623B 001-6020-522.42-10 1.50 SEAWESTERN INC CLOTHING & APPAREL 001-6020-522.20-80 9.76 SWAIN'S GENERAL STORE INC LEATHER& RELATED SUP,ACC 001-6020-522.31-02 51.62 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-6020-522 42-10 075 WHEELER, CORAL SUPPLIES 001-6020-522.31-02 65.13 Fire Department Fire Supression Division Total. $1,447.25 BLUMENTHAL UNIFORMS & EQUIP CLOTHING & APPAREL 001-6021-522.31-11 465.40 CLOTHING & APPAREL 001-6021-522.31-11 6119 CLALLAM CNTY DEPT OF HEALTH HEPATITIS B SHOTS 001-6021-522.41-50 57.00 CLALLAM CNTY FIRE DISTRICT 2 AWARDS BANQUET 001-6021-522.31-01 362.00 QWEST 07-05 A/C 3604523877817B 001-6021-522.42-10 0.12 07-05 A/C 3604525109623B 001-6021-522.42-10 0.12 Fire Department Fire Volunteers Division Total: $945.83 SUNSET DO -IT BEST HARDWARE AUTO SHOP EQUIPMENT & SUP 001-6022-522 31-01 90.80 Fire Department Special Operations Division Total: $90.80 QWEST 07-05 A/C 36045238778178 001-6030-522.42-10 0.23 07-05 A/C 3604525109623B 001-6030-522.42-10 0.23 VERIZON WIRELESS 06-25 A/C 671402094-00001 001-6030-522.42-10 57.30 • WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-6030-522.42-10 2.03 Fire Department Fire Prevention Division Total: $59.79 CLALLAM CNTY FIRE DISTRICT 2 FAIR SUPPLIES 001-6040-522.31-01 100.00 PARKER PAINT MFG CO INC PAINT 001-6040-522.31-01 51.64 QUILL CORPORATION PAPER (OFFICE,PRINT SHOP) 001-6040-522.31-01 37.83 QWEST 07-05 A/C 3604523877817B 001-6040-522 42-10 0.23 07-05 A/C 3604525109623B 001-6040-522.42-10 0.23 VERIZON WIRELESS 07-10 a/c 571099962-00001 001-6040-522.42-10 34.54 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-6040-522.42-10 3.51 Fire Department Fire Training Division Total. $227.98 CUMMINS NORTHWEST INC EQUIP MAINT & REPAIR SERV 001-6050-522.48-10 737.33 'MRS CLEAN SUPPLIES 001-6050-522.31-01 91.18 JANITORIAL 001-6050-522.41-50 395.00 ,PORT ANGELES FIRE DEPARTMENT SUPPLIES 001-6050-522.31-01 28.21 LIGHT BULB 001-6050-522.31-20 2.03 SEARS COMMERCIAL ONE DRYER 001-6050-522.48-10 331.69 SUNSET DO -IT BEST HARDWARE ELECTRICAL CABLES & WIRES 001-6050-522.31-20 25.35 PLUMBING EQUIP FIXT,SUPP 001-6050-522 48-10 10.23 SWAIN'S GENERAL STORE INC POISONS AGRICUL & INDUSTR 001-6050-522.31-02 23.71 WHEELER, CORAL SUPPLIES 001-6050-522.31-01 61.63 Fire Department Facilities Maintenance Division Total. $1,706.36 QWEST 07-05 A/C 3604523877817B 001-6060-525.42-10 1.04 • 07-05 A/C 3604525109623B 001-6060-525.42-10 1.04 F-12 Page 5 �c. --•• ; ,,� Date 7/28/2010 City of Port Angeles City Council Expenditure Report • 7', ��� From: 7110/2010 To: 7/2312010 Vendor Description Account Number Invoice Amount Fire Department Emergency Management Division Total: $2.08 Fire Department Department Total: $4,932.73 APWA WASHINGTON STATE CHAPTER REGISTRATION - G CUTLER 001-7010-532.43-10 400.00 DELL MARKETING LP COMPUTER HARDWARE&PERIPH1001-7010-532.31-60 478.22 COMPUTER HARDWARE&PERIPH1001-7010-532.31-60 1,665.52 Wireless Keyboard/Mouse 001-7010-532.31-60 102.96 QWEST 07-05 A/C 3604523877817B 001-7010-532.42-10 3.58 07-05 A/C 3604525109623B 001-7010-532.42-10 3.58 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-7010-532.42-10 84.69 Public Works -Gen Fnd Pub Wks Administration Division Total: $2,738.55 Public Works -Gen Fnd Department Total: $2,738.55 AMSAN OLYMPIC SUPPLY PAPER & PLASTIC-DISPOSABL 001-8010-574 31-01 -14.41 OLYMPIC STATIONERS INC OFFICE SUPPLIES, GENERAL 001-8010-574.31-01 -56.09 OFFICE SUPPLIES, GENERAL 001-8010-574.31-01 509.64 OFFICE SUPPLIES, GENERAL 001-8010-574 31-01 114.03 QWEST 07-05 A/C 36045238778178 001-8010-574.42-10 0.35 07-05 A/C 3604525109623B 001-8010-574.42-10 035 VERIZON WIRELESS 06-22 a/c 571136182-00005 001-8010-574.42-10 13.23 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-8010-574.42-10 5.23 Parks Dept Parks Administration Division Total: $572.33 QWEST 07-02 a/c 3604171942413B 001-8012-555.42-10 51.20 07-05 a/c 3604529861819B 001-8012-555.42-10 43.02 07-05 A/C 36045238778178 001-8012-555.42-10 0.35 07-05 A/C 3604525109623B 001-8012-555 42-10 0.35 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-8012-555.42-10 1.52 Parks Dept Senior Center Division Total: $96.44 HEPBURN SUPERIOR HAND TOOLS ,POW&NON POWER001-8050-536.31-20 280.71 PACIFIC OFFICE EQUIPMENT INC RADIO & TELECOMMUNICATION 001-8050-536.31-01 16.25 PENINSULA DAILY NEWS COMMUNICATIONS/MEDIA SERV 001-8050-536.44-10 14310 QWEST 07-05 A/C 3604523877817B 001-8050-536.42-10 0.23 07-05 A/C 3604525109623B 001-8050-536.42-10 0.23 VERIZON WIRELESS 06-28 a/c 271138138-00001 001-8050-536.42-10 139.00 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-8050-536.42-10 1.46 Parks Dept Ocean View Cemetery Division Total: $580.98 ALOHA FENCE CO SPORTING & ATHLETIC EQUIP 001-8080-576.31-20 3,172.01 CASCADE RECREATION INC FASTENERS, FASTENING DEVS 001-8080-576.31-20 16.96 OFFICE DEPOT COPYING MACHINE SUPPLIES 001-8080-576.31-01 63.83 PUGET SAFETY EQUIPMENT INC FIRST AID & SAFETY EQUIP 001-8080-576.31-01 86.50 SHIPPING AND HANDLING 001-8080-576.31-01 10.06 QWEST 07-05 A/C 3604523877817B 001-8080-576.42-10 1.14 07-05 A/C 36045251096238 001-8080-576.42-10 1.14 VERIZON WIRELESS 06-28 a/c 271138138-00004 001-8080-576.42-10 70.81 F-13 Page 6 i Date 7/28/2010 City of Port Angeles Y . City Council Expenditure Report From: 7110/2090 To: 7/23/2010 Vendor Description Account Number Invoice Amount WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-8080-576.42-10 704 WASHINGTON (OASI), STATE OF 2nd Qtr Unemployment 001-8080-576.20-60 2,37073 Parks Dept Park Facilities Division Total: $5,800.22 HAND TOOLS ,POW&NON POWER 102-7230-542.35-01 Parks Dept Department Total: $7,049.97 BELSON OUTDOORS INC I JANITORIAL SUPPLIES 001-8112-555.31-20 40542 QWEST 07-02 a/c 3604170786905B 001-8112-555.42-10 30.81 Facilities Maintenance Senior Center Facilities Division Total: $436.23 AMSAN OLYMPIC SUPPLY JANITORIAL SUPPLIES 001-8130-518.31-01 95.54 102-7230-542.42-10 JANITORIAL SUPPLIES 001-8130-518.31-01 -9.43 102-7230-542.48-10 JANITORIAL SUPPLIES 001-8130-518.31-01 -18.86 QWEST 07-05 A/C 3604523877817B 001-8130-518.42-10 0.12 Division Total: 07-05 A/C 3604525109623B 001-8130-518.42-10 0.12 VERIZON WIRELESS 06-22 a/c 571136182-00005 001-8130-518.42-10 17.79 Facilities Maintenance Custodial/Janitorial Svcs Division Total. $85.28 AIR FLO HEATING COMPANY INC AIR CONDITIONING & HEATNG 001-8131-518.48-10 296.21 QWEST 07-02 a/c 3604175328784B 001-8131-518.42-10 39.76 07-05 A/C 3604523877817B 001-8131-518.42-10 0.12 07-05 A/C 3604525109623B 001-8131-518.42-10' 0.12 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 001-8131-518.42-10 0.16 Facilities Maintenance Central Svcs Facilities Division Total. $336.37 Facilities Maintenance Department Total: $857.88 General Fund Fund Total: $86,760.15 PORT ANGELES CHAMBER OF COMM '10 MEDIA/MKTG CAMPAIGN 101-1430-557.50-83 45,623 36 Lodging Excise Tax Lodging Excise Tax Division Total: $45,623.36 Lodging Excise Tax Department Total: $45,623.36 Lodging Excise Tax Fund Fund Total: $45,623.36 AG-TEQ, INC AGRICULTURAL EQUIP&IMPLEM 102-0000-237.00-00 -470.40 Division Total: -$470.40 Department Total: -$470.40 • A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 102-7230-542.41-50 76.05 AG-TEQ, INC AGRICULTURAL EQUIP&IMPLEM 102-7230-542.35-01 6,070.40 FASTENAL INDUSTRIAL FIRST AID & SAFETY EQUIP. 102-7230-542.31-01 41.59 L & L TOOL SPECIALTIES HAND TOOLS ,POW&NON POWER 102-7230-542.35-01 4327 HAND TOOLS ,POW&NON POWER 102-7230-542.35-01 33.56 OFFICE DEPOT COPYING MACHINE SUPPLIES 102-7230-542.31-01 63.83 1QWEST 07-05 A/C 3604523877817B 102-7230-542.42-10 0.58 07-05 A/C 3604525109623B 102-7230-542 42-10 0.58 VERIZON WIRELESS 06-28 a/c 271138138-00004 102-7230-542.42-10 114.16 ,WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 102-7230-542.42-10 2.83 WASHINGTON (DOT), STATE OF CONSTRUCTION SERVICES,GEN 102-7230-542.48-10 39.56 WASHINGTON (OAS[), STATE OF 2nd Qtr Unemployment 102-7230-542.20-60 80.78 • Public Works -Street Street Division Total: $6,567.19 F-14 Page 7 Date 7/28/2010 ' City of Port Angeles „.w.µ City Council Expenditure Report r-111 �.el From: 7/10/2010 To: 7/23/2010 Vendor Description Account Number Invoice Amount Public Works -Street Department Total: $6,567.19 Street Fund Fund Total: $6,096.79 QWEST 07-05 A/C 3604523877817B 103-1511-558 42-10 0.06 07-05 A/C 3604525109623B 103-1511-558.42-10 0.06 RADIO PACIFIC INC (KONP) FACADE GRANT ADVERTISEMEN 103-1511-558.49-91 441.00 VERIZON WIRELESS 06-25 A/C 671402094-00001 103-1511-558.42-10 28.65 Economic Development Economic Development Division Total: $469.77 Economic Development Department Total: $469.77 Economic Development Fund Total. $469.77 QWEST 07-05 A/C 36045238778178 106-1512-558.42-10 0.12 07-05 A/C 3604525109623B 106-1512-558.42-10 0.12 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 106-1512-558.42-10 2.03 Economic Development Archaeologist Division Total. $2.27 Economic Development Department Total. $2.27 Cultural Resources Fund Total: $2.27 BUSINESS TELECOM PRODUCTS, INC 2 CA12CD REMOTE REPLACEME 107-5160-528.35-01 391.33 CENTURYLINK 07-06 a/c 300539444 107-5160-528.42-11. 85.00 07-06 a/c 300509854 107-5160-528.42-11 96.09 • 07-06 a/c 406063845 107-5160-528.42-11 160.22 CLALLAM CNTY DEPT OF COMM DEV DATA PROC SERV &SOFTWARE 107-5160-528.51-01 1,985.21 QWEST 07-05 A/C 3604523877817B 107-5160-528.42-10 3.12 07-05 A/C 3604525109623B 107-5160-528.42-10 3.12 07-02 a/c 360ZO20380301 B 107-5160-528.42-11 1,032.09 UNITED PARCEL SERVICE Shipping Chgs pe 7-3 107-5160-528.42-10 1396 VERIZON WIRELESS 06-25 A/C 671402094-00001 107-5160-528.42-10 173.69 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 107-5160-528.42-10 68.07 WASHINGTON (OAS]), STATE OF 2nd Qtr Unemployment 107-5160-528.20-60 6,381.20 Pencom Pencom Division Total. $10,393.10 Pencom Department Total: $10,393.10 Pencom Fund Fund Total. $10,393.10 WASHINGTON (OAST), STATE OF 2nd Qtr Unemployment 121-8021-576.20-60 306.78 Parks Dept Wm Shore Mem Pool Dist Division Total: $306.78 Parks Dept Department Total: $306.78 Wm Shor Mem Pool Dist Fund Total: $306.78 HABITAT FOR HUMANITY OF CL COUNTY BLDG CONSTRUC SERVICES- 172-2310-559.52-01 20,386.76 PA Housing Rehabilitation PA Housing Rehabilitation Division Total. $20,386.76 HABITAT FOR HUMANITY OF CL COUNTY BLDG CONSTRUC. SERVICES- 172-2359-559.41-50 23,498.28 PA Housing Rehabilitation Housing Authority Division Total. $23,498.28 PA Housing Rehabilitation Department Total: $43,885.04 • PA Housing Rehab Proj Fund Total. $43,885.04 PIMENTEL, HENRY UMPIRE PAYMENT 174-8221-574.41-50 13000 F-15 Page 8 Date 7/28/2010 City of Port Angeles City Council Expenditure Report From: 7110/2010 To: 712312010 • Vendor Description Account Number Invoice Amount PIMENTEL, HENRY UMPIRE PAYMENT 174-8221-574 41-50 132.00 QWEST 07-05 A/C 3604523877817B 174-8221-574.42-10 0.12 07-05 A/C 3604525109623B 174-8221-574.42-10 0.12 RAMSEY, SCOTT UMPIRE PAYMENT 174-8221-574.41-50 264.00 ROONEY, RANDY L UMPIRE PAYMENT 174-8221-574.41-50 242.00 UMPIRE PAYMENT 174-8221-574.41-50 132.00 SWAIN'S GENERAL STORE INC SPORTING & ATHLETIC EQUIP 174-8221-574.31-01 325.46 THAYER, JEFFREY UMPIRE PAYMENT 174-8221-574.41-50 242.00 UMPIRE PAYMENT 174-8221-574.41-50 110.00 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 174-8221-574 42-10 4.16 WHITTEN, BILL P UMPIRE PAYMENT 174-8221-574.41-50 330.00 Recreation Activities Sports Programs Division Total: $1,911.86 QWEST 07-05 A/C 36045238778178 174-8222-574.42-10 0.12 07-05 A/C 3604525109623B 174-8222-574.42-10 0.12 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 174-8222-574.42-10 4.11 Recreation Activities Special Events Division Total: $4.35 Keesha Larson RFD CHEER-LARSON 174-8224-347.60-23 38.00 Puget Sound Express ADV CAMP WHALE WATCHING 174-8224-574.41-50 '874.50 OLYMPIC SKATE CENTER HUMAN SERVICES 174-8224-574.31-01 12000 PENINSULA COLLEGE TRAINING DC STAFF 174-8224-574.43-10 400.00 • QWEST 07-05 A/C 3604523877817B 174-8224-574.42-10 0.12 07-05 A/C 36045251096236 174-8224-574.42-10 0.12 VERIZON WIRELESS 06-22 a/c 571136182-00005 174-8224-574.42-10 26.46 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 174-8224-574.42-10 0.32 Recreation Activities Youth/Family Programs Division Total: $1,459.52 Recreation Activities Department Total: $3,375.73 Recreational Activities Fund Total. _ $3,375.73 MCKINSTRY ESSENTION, INC CITY HALL HVAC 310-7919-594.65-10 3,428.69 Capital Projects -Pub Wks GF -Pub Wks Projects Division Total: $3,428.69 PENINSULA DAILY NEWS LEGAL ADS 310-7930-595 65-10 83.76 ,Capital Projects -Pub Wks GF -Street Projects Division Total: $83.76 Capital Projects -Pub Wks Department Total: $3,512.45 Capital Improvement Fund Total: $3,512.45 GENERAL PACIFIC INC ELECTRICAL EQUIP & SUPPLY 401-0000-141 40-00 421.68 ELECTRICAL CABLES & WIRES 401-0000-141.40-00 1,795.62 ELECTRICAL CABLES & WIRES 401-0000-141.40-00 1,59546 HUGHES UTILITIES LTD ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 547.51 BRADHAM, JENNA L FINAL BILL REFUND 401-0000-122.10-99 95.72 CAUDLE, JEFFREY B FINAL BILL REFUND 401-0000-122.10-99 60.25 DAUGAARD, DANIEL K DEPOSIT REFUND 401-0000-122.10-99 125.00 DUCKETT, LOUIS L FINAL BILL REFUND 401-0000-122.10-99 195.31 • FLAIM, DEBRAH L FINAL BILL REFUND 401-0000-122.10-99 4845 F-16 Page 9 <:Faas, Date 7/28/2010 City of Port Angeles ' City Council Expenditure Report • f>,-,•; w, From: 7110/2010 To: 7/23/2010 Vendor Description Account Number Invoice Amount FORD, CARRIE L MANUAL DEPOSIT REFUND 401-0000-122.10-99 250.00 GRUB, CHANDRA OVERPAYMENT -1330 E 6TH ST 401-0000-122.10-99 192.49 HODGSON, NICOLE W FINAL BILL REFUND 401-0000-122.10-99 97.96 HOWE, SANDRA A FINAL BILL REFUND 401-0000-122.10-99 49.82 HUANG, CARINA FINAL BILL REFUND 401-0000-122.10-99 4229 KONOPIK, ELIZABETH FINAL BILL REFUND 401-0000-122.10-99 51.56 LAMCO FINAL REFUND -1819 W 10TH 401-0000-122.10-99 151.66 MANSFIELD, NATALIE S OVERPAYMENT -301 VASHON #8 401-0000-122.10-99 29.26 MARTIN, VIRGINIA M FINAL BILL REFUND 401-0000-122.10-99 34.98 MCGUIRE, BRETA FINAL BILL REFUND 401-0000-122.10-99 427.17 MIKAMI, EMI OVERPAYMENT -1308 E FRONT 401-0000-122.10-99 0.35 NEWMAN, ANDREW J FINAL BILL REFUND 401-0000-122.10-99 114.46 NICOLAS, JEREMY N FINAL BILL REFUND 401-0000-122.10-99 111.67 NOAH MOC-P FINAL BILL REFUND 401-0000-122.10-99 1975 NOE, JEFFREY B FINAL BILL REFUND 401-0000-122.10-99 56.85 OLYMPIC COMMUNITY ACTION PROGRAP DEPOSIT REFUND 401-0000-122.10-99 125.00 PRITCHARD, DEVIN FINAL BILL REFUND 401-0000-122.10-99 9626 QUALLs; KIM ' FINAL BILL REFUND 401-0000-122.10-99 5.66 RACHELLE M FINAL BILL REFUND 401-0000-122.10-99 57.88 •SIRES, TORRES, TINA M FINAL BILL REFUND 401-0000-122.10-99 9.73 VARELA, TIA M FINAL BILL REFUND 401-0000-122.10-99 92.18 VEDIN, MARCELLA H J FINAL BILL REFUND 401-0000-122.10-99 64.09 WINDERMERE PROPERTY MANAGEMENIOVERPAYMENT-2125 W 15TH 401-0000-122.10-99 74.24 WESCO DISTRIBUTION INC FASTENERS, FASTENING DEVS 401-0000-141.40-00 406.49 ELECTRICAL EQUIP & SUPPLY 401-0000-141.40-00 1,297.33 Division Total: $8,744.13 Department Total: $8,744.13 QWEST 07-05 A/C 3604523877817B 401-7111-533.42-10 0.30 07-05 A/C 3604525109623B 401-7111-533 42-10 0.30 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 401-7111-533.42-10 550 Public Works -Electric Engineering -Electric Division Total. $6.10 EES CONSULTING INC WPAG 2010 401-7120-533.49-01 301.12 Denis & Sibylle SCHREINER RENEWABLE ENERGY 401-7120-533.35-01 238.65 NORTHWEST PUBLIC POWER ASSN WORKSHOP 401-7120-533.43-10 550.00 QWEST 07-05 A/C 3604523877817B 401-7120-533.42-10 0.35 07-05 A/C 3604525109623B 401-7120-533.42-10 035 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 401-7120-533.42-10 47.28 Public Works -Electric Power Systems Division Total: $1,137.75 A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 401-7180-533.41-50 169.00 CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 23414 • ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 59.62 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 78.05 F-17 Page 10 �• Date 7/28/2010 .e City of Port Angeles City Council Expenditure Report "° ..Y. From: 7/10/2010 To: 7/23/2010 • Vendor Description Account Number Invoice Amount CED/CONSOLIDATED ELEC DIST INC ELECTRICAL EQUIP & SUPPLY 401-7180-533 34-02 62.87 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 71.54 CLINICARE OF PORT ANGELES INC DOT PHYSICAL - G MCCABE 401-7180-533.49-90 75.00 CRASH SUPPLY INC OFFICE SUPPLIES, GENERAL 401-7180-533.31-01 71.94 MASON COUNTY PUD #3 HUMAN SERVICES 401-7180-533.41-50 2,21846 Brent Robinson MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 Brian Wahto MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 MEAL REIMBURSEMENT 401-7180-533 31-01 15.25 Derrick Halsey MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 Greg McCabe MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 I Richard Hixson MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 Tod Eisele MEAL REIMBURSEMENT 401-7180-533.31-01 15.25 Serenity House REFUND 401-7180-379.00-00 12,563.53 OLYMPIC LAUNDRY & DRY CLEANERS LAUNDRY/DRY CLEANING SERV 401-7180-533.41-50 67.38 OLYMPIC STATIONERS INC Office Supplies 401-7180-533.34-02 5.76 PARSINEN LANDSCAPE MAINT INC Landscape Maintenance 401-7180-533.48-10 4,661.20 PENINSULA DAILYNEWS LEGAL ADS 401-7180-533.44-10 84.15 PUD #1 OF CLALLAM COUNTY MISC PROFESSIONAL SERVICE MISC PROFESSIONAL SERVICE 401-7180-533.41-50 401-7180-533 41-50 34.56 14.52 • QUILL CORPORATION OFFICE SUPPLIES, GENERAL 401-7180-533.31-01 152.92 QWEST 07-02 a/c 206ZO20411942B 401-7180-533.42-10 65.05 07-02 a/c 3604178095336B 401-7180-533.42-10 43.02 07-05 A/C 3604523877817B 401-7180-533.42-10 2.78 07-05 A/C 36045251096238 401-7180-533.42-10 2.78 07-05 a/c 36045295413538 401-7180-533.42-10 39.76 07-05 a/c 3604526236776B 401-7180-533.42-10 42.21 'ROHLINGER ENTERPRISES INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 348.29 EQUIP MAINT & REPAIR SERV 401-7180-533.48-10 92.14 EQUIP MAINT & REPAIR SERV 401-7180-533.48-10 758.98 SUNSET DO -IT BEST HARDWARE ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 49.14 FASTENERS, FASTENING DEVS 401-7180-533.34-02 16.26 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 87.20 FASTENERS, FASTENING DEVS 401-7180-533.34-02 5.42 THURMAN SUPPLY ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 30.79 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 57.41 UNITED PARCEL SERVICE Shipping Chgs pe 7-3 401-7180-533.42-10 6.93 UTILITIES UNDERGROUND LOC CTR JUNE LOCATES 401-7180-533.49-90 26.27 VERIZON WIRELESS 06-28 a/c 271138138-00002 401-7180-533.42-10 39.94 06-28 a/c 271138138-00003 401-7180-533.42-10 63.82 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 401-7180-533.42-10 27.87 • Public Works -Electric Electric Operations Division Total: $22,552.70 F-18 Page 11 ,, U74 . F.� Date 7/28/2010 City of Port Angeles City Council Expenditure Report • `°�� From: 7/10/2010 To: 7/23/2010 Vendor APPLIED MEASUREMENT PROF INC CLINICARE OF PORT ANGELES INC CUMMINS NORTHWEST INC OFFICE DEPOT PORS ATTY AT LAW, THOMAS M PUD #1 OF CLALLAM COUNTY QWEST UTILITIES UNDERGROUND LOC CTR VERI7_ON WIRELESS WASHINGTON (DIS), STATE OF • Public Works -Water NCL NORTH CENTRAL LABORATORIES ADT SECURITY SERVICES, INC BAXTER AUTO PARTS #15 CLINICARE OF PORT ANGELES INC CUMMINS NORTHWEST INC FEI EVERETT 3023(FAMILIAN) GRAINGER HACH COMPANY KAMAN INDUSTRIAL TECHNOLOGIES JEFF YOUNG • NCL NORTH CENTRAL LABORATORIES Description Public Works -Electric Electric Utility Fund EDUCATIONAL SERVICES EDUCATIONAL SERVICES DOT PHYSICAL - HART EQUIP MAINT & REPAIR SERV COPYING MACHINE SUPPLIES WATER RIGHTS Service @ Reservoir Rd 07-02 a/c 206T356329F776B 07-05 a/c 3604525230978B 07-02 a/c 3604175079758B 07-05 A/C 3604523877817B 07-05 A/C 3604525109623B 07-05 a/c 3604524587479B JUNE LOCATES 06-28 a/c 271138138-00005 RADIO & TELECOMMUNICATION Water Public Works -Water Account Number Department Total: Fund Total. 402-7380-534.43-10 402-7380-534.43-10 402-7380-534.49-90 402-7380-534.48-10 402-7380-534.31-01 402-7380-534.41-50 402-7380-534.47-10 402-7380-534.42-10 402-7380-534.42-10 402-7380-534.42-10 402-7380-534.42-10 402-7380-534.42-10 402-7380-534.42-10 402-7380-534.49-01 402-7380-534.42-10 402-7380-534.42-10 Division Total: Department Total: Water Fund Fund Total: CHEMICAL, COMMERCIAL,BULK 403-0000-237 00-00 CHEMICAL, COMMERCIAL,BULK 403-0000-237.00-00 CHEMICAL, COMMERCIAL,BULK 403-0000-237.00-00 Division Total. Department Total: SECURITY, FIRE, SAFETY SERV 403-7480-535.41-50 SECURITY, FIRE, SAFETY SERV 403-7480-535.41-50 BELTS AND BELTING 403-7480-535.31-20 DOT PHYSICAL - NIXON 403-7480-535.49-90 DOT PHYSICAL - BALLARD 403-7480-535.49-90 EQUIP MAINT & REPAIR SERV 403-7480-535.48-10 PLUMBING EQUIP FIXT,SUPP 403-7480-535.31-20 JANITORIAL SUPPLIES 403-7480-535.31-01 ROAD/HGWY HEAVY EQUIPMENT 403-7480-535 31-20 CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 AUTO & TRUCK MAINT ITEMS 403-7480-535.31-20 JYOUNG REIMBURSEMENT 403-7480-535.31-01 REIMBURSED JYOUNG FOR WOR 403-7480-535 43-10 CHEMICAL, COMMERCIAL,BULK 403-7480-535.31-01 CHEMICAL, COMMERCIAL,BULK 403-7480-535.31-01 CHEMICAL, COMMERCIAL,BULK 403-7480-535.31-01 Page 12 Invoice Amount $23,696.55 $32,440.68 85.00 10200 75.00 1,099.83 63.83 732.00 33.55 10.64 122.47 39.76 0.69 0.69 47.57 26.26 130.62 31.98 $2,601.89 $2,601.89 $2,601.89 -49.95 -10.43 -36.65 -$97.03 -$97.03 58.33 150.00 166.52 85.00 75.00 647.80 534.92 122.34 77.79 169.05 16.97 139.89 60.00 644.53 134.52 F 47$7 Solid Waste -Collections Fund Total. $383.36 BIOCYCLE LIBRARY SERVICES(EXCL 908 405-0000-237.00-00 -7.98 F -20 Page 13 Am 07-08 a/c 3605650365696B Date 7/28/2010 . ra 07-05 A/C 3604523877817B City of Port Angeles 0.93 City Council Expenditure Report 403-7480-535.42-10 0.93 From: 7/10/2010 To: 7/23/2010 • Vendor Description Account Number Invoice Amount OFFICE DEPOT COPYING MACHINE SUPPLIES 403-7480-535.31-01 63.83 OLYMPIC STATIONERS INC SUPPLIES 403-7480-535 31-01 177.98 PARSINEN LANDSCAPE MAINT INC Landscape Maintenance 403-7480-535.48-10 921.40 QWEST 07-02 a/c 36041701900808 403-7480-535.42-10 40.26 Solid Waste -Collections Fund Total. $383.36 BIOCYCLE LIBRARY SERVICES(EXCL 908 405-0000-237.00-00 -7.98 F -20 Page 13 Am 07-08 a/c 3605650365696B 403-7480-535.42-10 39.76 07-05 A/C 3604523877817B 403-7480-535.42-10 0.93 07-05 A/C 36045251096238 403-7480-535.42-10 0.93 SUNSET DO -IT BEST HARDWARE JANITORIAL SUPPLIES 403-7480-535.31-01 14.20 CLOTHING & APPAREL 403-7480-535.31-01 26.81 HARDWARE,AND ALLIED ITEMS 403-7480-535.31-01 4.86 ELECTRICAL CABLES & WIRES 403-7480-535.31-20 68.03 HARDWARE,AND ALLIED ITEMS 403-7480-535.31-20 19.09 OFFICE SUPPLIES, GENERAL 403-7480-535.35-01 12.94 HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 31.21 SWAIN'S GENERAL STORE INC JANITORIAL SUPPLIES 403-7480-535.31-01 44.14 HARDWARE,AND ALLIED ITEMS 403-7480-535.31-01 10.77 JANITORIAL SUPPLIES 403-7480-535.31-01 11.79 - HARDWARE;AND ALLIED ITEMS 403-7480-535.31-01 10.70 SUPPLIES 403-7480-535 31-20 2.57 HAND TOOLS ,POW&NON POWER 403-7480-535.35-01 32.45 THURMAN SUPPLY ELECTRICAL EQUIP & SUPPLY 403-7480-535 31-01 12.75 CHEMICAL LAB EQUIP & SUPP 403-7480-535.31-01 6.59 PLUMBING EQUIP FIXT,SUPP 403-7480-535.31-20 52.10 ELECTRICAL EQUIP & SUPPLY 403-7480-535.31-20 16.10 TITUS INDUSTRIAL GROUP HAND TOOLS ,POW&NON POWER 403-7480-535.31-20 328.02 USA BLUEBOOK CHEMICAL, COMMERCIAL,BULK 403-7480-535.31-01 362.22 UTILITIES UNDERGROUND LOC CTR JUNE LOCATES 403-7480-535.49-01 26.26 ,WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 403-7480-535.42-10 15.26 Public Works-WW/Stormwtr Wastewater Division Total: $5,909.48 Public Works-WW/Stormwtr Department Total: $5,909.48 Wastewater Fund Fund Total: $5,812.45 iA-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 404-7580-537.41-50 76.05 'DELL MARKETING LP COMPUTER HARDWARE&PERIPH1404-7580-537.31-01 183.37 ASSN OF OREGON RECYCLERS MEMEBERSHIP FOR ASSN OF O 404-7580-537.49-01 55.00 OFFICE DEPOT COPYING MACHINE SUPPLIES 404-7580-537.31-01 63.83 QWEST 07-05 A/C 3604523877817B 404-7580-537.42-10 0.46 07-05 A/C 3604525109623B 404-7580-537.42-10 0.46 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 404-7580-537.42-10 4.19 Public Works -Solid Waste Solid Waste -Collections Division Total: $383.36 Public Works -Solid Waste Department Total: $383.36 Solid Waste -Collections Fund Total. $383.36 BIOCYCLE LIBRARY SERVICES(EXCL 908 405-0000-237.00-00 -7.98 F -20 Page 13 Am Q,, �+ Date 7/28/2010 44, City of Port Angeles City Council Expenditure Report • f.4r t From: 711012010 To: 712312010 0 Vendor Description Account Number Invoice Amount Division Total. -$7.98 Department Total. -$7.98 ANGELES MILLWORK & LUMBER CO LUMBER& RELATED PRODUCTS 405-7538-537.31-20 10.53 HARDWARE,AND ALLIED ITEMS 405-7538-537.31-20 17.54 BAILEY SIGNS & GRAPHICS MARKERS, PLAQUES,SIGNS 405-7538-537.31-20 54.20 BIOCYCLE LIBRARY SERVICES(EXCL 908 405-7538-537.49-01 102.98 FEI EVERETT 3023(FAMILIAN) PIPE AND TUBING 405-7538-537.31-20 121.02 LAKESIDE INDUSTRIES INC ROAD/HWY MATERIALS ASPHLT 405-7538-537.31-20 2,689.16 ROAD/HWY MAT NONASPHALTIC 405-7538-537.31-20 1,121.71 NORTH PENINSULA BLDG ASSOC COMMUNICATIONS/MEDIA SERV 405-7538-537.44-10 150.00 QWEST 07-05 A/C 36045238778178 405-7538-537 42-10 0.46 07-05 A/C 3604525109623B 405-7538-537.42-10 0.46 07-05 a/c 3604522245145B 405-7538-537 42-10 39.80 07-05 a/c 36045281005328 405-7538-537.42-10 39.76 RADIO PACIFIC INC (KONP) COMMUNICATIONS/MEDIA SERV 405-7538-537.44-10 552.00 SEQUIM GAZETTE, THE COMMUNICATIONS/MEDIA SERV 405-7538-537.44-10 285.00 THURMAN SUPPLY PIPE AND TUBING 405-7538-537 31-20 25.67 PIPE AND TUBING 405=7538-537,31-20 306.34 CORPORATION DATA PROC CARDS & PAPER 405-7538-537.31-01 280.68 •UNITEC WAK-IN MAN, INC Remove Refrigerant 405-7538-537 48-10 1,079.66 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 405-7538-537.42-10 2.76 WASHINGTON (OAST), STATE OF 2nd Qtr Unemployment 405-7538-537.20-60 1,281.01 Public Works -Solid Waste SW - Transfer Station Division Total: $8,160.74 SUNSET DO -IT BEST HARDWARE SUPPLIES 405-7585-537.31-20 56.04 Public Works -Solid Waste Solid Waste -Landfill Division Total: $56.04 Public Works -Solid Waste Department Total: $8,216.78 Solid Waste-LF/Trf Stn Fund Total. $8,208.80 CLALLAM CNTY DEPT OF HEALTH FECAL TESTS APRIL 2010 406-7412-538.41-50 759.00 QWEST 07-05 A/C 3604523877817B 406-7412-538 42-10 0.23 07-05 A/C 3604525109623B 406-7412-538.42-10 0.23 UTILITIES UNDERGROUND LOC CTR JUNE LOCATES 406-7412-538.49-90 26.26 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 406-7412-538 42-10 4.62 Public Works-WW/Stormwtr Stormwater Division Total: $790.34 Public Works-WW/Stormwtr Department Total: $790.34 Stormwater Fund Fund Total. $790.34 PROGRESSIVE MEDICAL INTERNATIONAI SALE SURPLUS/OBSOLETE 409-0000-237.00-00 -79.50 SALE SURPLUS/OBSOLETE 409-0000-237 00-00 -23.16 SALE SURPLUS/OBSOLETE 409-0000-237.00-00 -33.63 SALE SURPLUS/OBSOLETE 409-0000-237.00-00 -50.35 SALE SURPLUS/OBSOLETE 409-0000-237.00-00 -31.84 • Division Total: -$218.48 Department Total: -$218.48 F-21 Page 14 I Date 7/28/2010 City of Port Angeles City Council Expenditure Report From: 7/10/2010 To: 7/23/2010 • Vendor Description BLUMENTHAL UNIFORMS & EQUIP CLOTHING & APPAREL CAPTAIN T'S CLOTHING EMSAR OF WASHINGTON TRAY W/HARDWARE MOROZ, JAMES EDUCATIONAL SERVICES OLYMPIC MEDICAL CENTER SALE SURPLUS/OBSOLETE OLYMPIC OXYGEN OXYGEN PROGRESSIVE MEDICAL INTERNATIONAI SALE SURPLUS/OBSOLETE SALE SURPLUS/OBSOLETE SALE SURPLUS/OBSOLETE SALE SURPLUS/OBSOLETE SALE SURPLUS/OBSOLETE QWEST 07-05 A/C 3604523877817B 07-05 A/C 3604525109623B SYSTEMS DESIGN WEST, LLC FINANCIAL SERVICES FINANCIAL SERVICES Fire Department Medic I Fire Department ' I Medic IUtility ALL WEATHER HEATING & COOLING C & F INSULATION DAVE'S HEATING & COOLING SVC EES CONSULTING INC GLASS SERVICES CO INC KANDU ENTERPRISE MATHEWS GLASS CO INC Francis Drake Kay Kassinger NIPPON PAPER INDUSTRIES USA, CO RADIO PACIFIC INC (KONP) TRACY'S INSULATION Public Works -Electric CITY REBATE CITY EBAATE CITY REBATE CITY REBATE CITY REBATE TRM ASSISTANCE CITY REBATE CITY REBATE CITY REBATE CITY REBATE CITY REBATE CITY REBATE CITY REBATE CITY REBATE JUNE ADS CITY REBATE Conservation Public Works -Electric Conservation GeoLlne, Inc GPS LOCATER Public Works -Electric Electric Projects Public Works -Electric Account Number 409-6025-526.20-80 409-6025-526.20-80 409-6025-526.31-01 409-6025-526 31-08 409-6025-526.31-13 409-6025-526.31-02 409-6025-526.31-02 409-6025-526.31-02 409-6025-526.31-02 409-6025-526 31-02 409-6025-526.31-02 409-6025-526.42-10 409-6025-526.42-10 409-6025-526.41-50 409-6025-526.41-50 Division Total: Department Total: Fund Total: 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.41-50 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.49-86 421-7121-533.44-10 421-7121-533.49-86 Division Total. Department Total: Fund Total 451-7188-594.64-10 Division Total: Department Total., Invoice Amount 114.31 911.03 197.35 20000 33.46 25.74 433.88 410.79 649.71 1,025.84 298.77 1.39 1.39 3,041.72 2,563.00 $9,908.38 $9,908.38 $9,689.90 1,500.00 1,384.25 1,500.00 2,000.00 2,000.00 5,597.50 1,935.00 72900 703.80 1,297.98 1,464.00 500.00 319.86 42,978.60 550.00 1,221.32 $65,681.31 $65,681.31 $65,681.31 9,514.27 $9,514.27 $9,514.27 Electric Utility CIP Fund Total: $9,514.27 ADS, LLC MONITORING CSO OVERFLOWS 453-7488-594.41-50 �,43�.81 Page 15 • Is "T c•4 -x •4 r+ Date 7/28/2010 City of Port Angeles City Council Expenditure Report • r'' �t^*`t From: 7/10/2010 To: 7/23/2010 Vendor BROWN AND CALDWELL Public Works-WW/Stormwtr BAXTER AUTO PARTS #15 MCMASTER-CARR SUPPLY CO N C MACHINERY CO NAPA AUTO PARTS • PETTIT OIL COMPANY SOUNDOFF SIGNAL SUNSET DO -IT BEST HARDWARE Description DESIGN FOR PHASE 1 CSO DESIGN FOR PHASE 1 CSO Wastewater Projects Public Works-WW/Stormwtr WasteWater Utility CIP AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT. ITEMS HOSES, ALL KINDS AUTO & TRUCK ACCESSORIES HOSES, ALL KINDS AUTO & TRUCK ACCESSORIES AUTO & TRUCK MAINT. ITEMS FUEL,OIL,GREASE, & LUBES FUEL,OIL,GREASE, & LUBES FUEL,OIL,GREASE, & LUBES FUEL,OIL,GREASE, & LUBES AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK ACCESSORIES AUTO & TRUCK ACCESSORIES AUTO & TRUCK ACCESSORIES AUTO & TRUCK ACCESSORIES AUTO & TRUCK ACCESSORIES AUTO & TRUCK MAINT ITEMS A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER ARAMARK LAUNDRY/DRY CLEANING SERV LAUNDRY/DRY CLEANING SERV CUMMINS NORTHWEST INC AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT ITEMS AUTO & TRUCK MAINT. ITEMS AUTO & TRUCK MAINT. ITEMS DEPARTMENT OF LICENSING EQUIPMENT LICENSING FEES OF GENERAL ADMINISTRATION MEMBERSHIPS •DEPT EVERGREEN COLLISION CENTER EXTERNAL LABOR SERVICES FASTENAL INDUSTRIAL AUTO & TRUCK MAINT. ITEMS Account Number 453-7488-594.41-50 453-7488-594 41-50 Division Total: Department Total: Fund Total. 501-0000-141.40-00 501-0000-141.40-00 501-0000-141 40-00 501-0000-141.40-00 501-0000-141.40-00 501-0000-141.40-00 501-0000-237.00-00 501-0000-141.40-00 501-0000-141.40-00 501-0000-141.40-00 501-0000-141 40-00 501-0000-141.40-00 501-0000-141.40-00 501-0000-141.20-00 501-0000-141.20-00 501-0000-141.20-00 501-0000-141.20-00 501-0000-141.40-00 501-0000-237.00-00 501-0000-237.00-00 501-0000-237.00-00 501-0000-237.00-00 501-0000-237.00-00 501-0000-141.40-00 Division Total: Department Total: 501-7630-548.41-50 501-7630-548.49-90 501-7630-548.49-90 501-7630-548.34-02 501-7630-548.34-02 501-7630-548.34-02 501-7630-548.34-02 501-7630-548 49-90 501-7630-548.49-01 501-7630-548.48-10 501-7630-548.34-02 Invoice Amount 191,551.80 -2,66667 $193,322.94 $193,322.94 $193,322.94 217.61 41 69 79.97 -26.66 21.89 24.27 -6.52 226.86 477.31 17.59 5407 5.12 67.45 6,167.12 75403 6,475.58 6,197.96 2,188.90 73.35 -50.65 -200.88 -200.88 -200.88 5.59 $22,409.89 $22,409.89 95.50 28.23 28.23 -409.75 -732.09 69.25 245.50 487.44 250.00 260.16 17485 F-23 Page 16 Page 17 Date 7/28/2010 City of Port Angeles ® City Council Expenditure Report r `' '�*• 4 t From: 7110/2010 To: 7/23/2010 • Vendor Description Account Number Invoice Amount H & R PARTS & EQUIPMENT INC AUTO & TRUCK MAINT ITEMS 501-7630-548 34-02 1,02081 KAMAN INDUSTRIAL TECHNOLOGIES AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 84.89 MATCO TOOLS AUTO SHOP EQUIPMENT & SUP 501-7630-548.35-01 64.93 MCMASTER-CARR SUPPLY CO AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-01 84.11 MOBUILT RV AUTO SHOP EQUIPMENT & SUP 501-7630-548.34-02 55.54 MOTOR TRUCKS INC AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 163.76 AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 234.85 AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 498.74 AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 -34.22 MURRAY MOTORS INC EXTERNAL LABOR SERVICES 501-7630-548.48-10 505.92 EXTERNAL LABOR SERVICES 501-7630-548.48-10 22392 EXTERNAL LABOR SERVICES 501-7630-548.48-10 120.92 EXTERNAL LABOR SERVICES 501-7630-548.48-10 12569 N C MACHINERY CO AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 158.39 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 125.16 NAPA AUTO PARTS AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 349.48 AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 3.85 AUTOA TRUCK ACCESSORIES 501-7630-548.34-02 10.37 OFFICE DEPOT COPYING MACHINE SUPPLIES 501-7630-548.31-01 63.83 PACIFIC OFFICE EQUIPMENT INC OFFICE MECH AIDS,SM MACH 501-7630-548.31-01 54.41 • PAPE' MATERIAL HANDLING ROAD/HGWY HEAVY EQUIPMENT 501-7630-548.34-02 1,333.32 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 136.16 AUTO & TRUCK MAINT. ITEMS 501-7630-548 34-02 29.42 PARKER PAINT MFG CO INC AUTO & TRUCK MAINT. ITEMS 501-7630-548 34-02 15.86 PETTIT OIL COMPANY FUEL,OIL,GREASE, & LUBES 501-7630-548.32-10 882.25 PORT ANGELES FORD LINCOLN AUTO & TRUCK ACCESSORIES 501-7630-548 34-02 213.43 EXTERNAL LABOR SERVICES 501-7630-548.48-10 23.79 AUTO & TRUCK MAINT ITEMS 501-7630-548.48-10 357.41 EXTERNAL LABOR SERVICES 501-7630-548 48-10 368.56 PORT ANGELES TIRE FACTORY EXTERNAL LABOR SERVICES 501-7630-548.48-10 23.31 EXTERNAL LABOR SERVICES 501-7630-548.48-10 26.02 EXTERNAL LABOR SERVICES 501-7630-548.48-10 16.21 AUTO & TRUCK MAINT. ITEMS 501-7630-548.48-10 264.88 EXTERNAL LABOR SERVICES 501-7630-548.48-10 70.43 EXTERNAL LABOR SERVICES 501-7630-548.48-10 4293 AUTO & TRUCK MAINT. ITEMS 501-7630-548.48-10 353.08 EXTERNAL LABOR SERVICES 501-7630-548.48-10 37.92 EXTERNAL LABOR SERVICES 501-7630-548.48-10 3675 AUTO & TRUCK MAINT ITEMS 501-7630-548.48-10 50.74 EXTERNAL LABOR SERVICES 501-7630-548.48-10 54.56 EXTERNAL LABOR SERVICES 501-7630-548.48-10 16.21 • EXTERNAL LABOR SERVICES 501-7630-548.48-10 78.05 F-24 Page 17 Date 7/28/2010 City of Port Angeles City Council Expenditure Report • r`r ��•^� From: 7/10/2010 To: 7/23/2010 Vendor Description Account Number Invoice Amount QWEST 07-05 A/C 36045238778176 501-7630-548.42-10 0.81 07-05 A/C 36045251096236 501-7630-548.42-10 0.81 RICHMOND 2 -WAY RADIO EXTERNAL LABOR SERVICES 501-7630-548.48-10 195.12 RADIO & TELECOMMUNICATION 501-7630-548.48-10 146.18 EXTERNAL LABOR SERVICES 501-7630-548.48-10 43.36 EXTERNAL LABOR SERVICES 501-7630-548.48-10 162.60 RADIO & TELECOMMUNICATION 501-7630-548.48-10 66.67 RUDDELL AUTO MALL AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 11361 EXTERNAL LABOR SERVICES 501-7630-548 48-10 3810 EXTERNAL LABOR SERVICES 501-7630-548.48-10 38.10 SAHLBERG EQUIPMENT CO INC, JF AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 660.51 ROAD/HGWY HEAVY EQUIPMENT 501-7630-548.34-02 13,980.11 ROAD/HGWY HEAVY EQUIPMENT 501-7630-548 34-02 5,248.29 ROAD/HGWY HEAVY EQUIPMENT 501-7630-548.34-02 5,709.04 SOUNDOFF SIGNAL AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 2,592.26 AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 2,592.26 AUTO & TRUCK ACCESSORIES 501-7630-548.34-02 2,592.26 AUTO & TRUCK ACCESSORIES 501-7630-594.64-10 -946.55 & TRUCK ACCESSORIES 501-7630-594.64-10 653.52 •AUTO SUNSET DO -IT BEST HARDWARE RENTAL/LEASE EQUIPMENT 501-7630-548.34-02 35.23 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 9.91 GASES CONT EQUIP:LAB,WELD 501-7630-548.34-02 42.90 AUTO & TRUCK MAINT ITEMS 501-7630-548.34-02 2216 AUTO & TRUCK MAINT ITEMS 501-7630-548 34-02 19.49 SYSTEMS FOR PUBLIC SAFETY, INC EXTERNAL LABOR SERVICES 501-7630-594.64-10 86.30 EXTERNAL LABOR SERVICES 501-7630-594.64-10 86.30 WASHINGTON (DIS), STATE OF RADIO & TELECOMMUNICATION 501-7630-548.42-10 15.75 WILDER TOYOTA INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 855.28 Public' Works -Equip Svcs Equipment Services Division Total: $43,904.34 Public Works -Equip Svcs Department Total: $43,904.34 Equipment Services Fund Total: $66,314.23 AVAYA, INC SUPPLIES 502-2081-518.48-02 1,376.30 CDW GOVERNMENT INC CONSULTING SERVICES 502-2081-518.41-50 4,67500 CONSULTING SERVICES 502-2081-518.41-50 17000 QWEST 07-05 A/C 36045238778176 502-2081-518.42-10 1.04 07-05 A/C 36045251096238 502-2081-518.42-10 1.04 WASHINGTON (DIS), STATE OF COMPUTERS,DP & WORD PROC. 502-2081-518.31-60 11.38 RADIO & TELECOMMUNICATION 502-2081-518.42-10 4.88 Finance Department Information Technologies Division Total: $6,239.64 • Finance Department Department Total: $6,239.64 Information Technology Fund Total: $6,239.64 PA DOWNTOWN ASSN JUNE 2010 DECAL SALES 650-0000-231.91-00 718.78 F -25 Page 18 i .�•�„�,: „�,� �r, Date 7/28/2010 City of Port Angeles City Council Expenditure Report ''•R�^' h From: 7110/2010 To: 712312010 • ;Vendor Description Account Number Invoice Amount 'PA DOWNTOWN ASSN JUNE 2010 PBIA RECEIPTS 650-0000-231 92-00 1,534.51 JUNE 2010 DUPAR RECEIPTS 650-0000-231.93-00 1,872.00 Division Total. $4,125.29 Department Total: $4,125.29 Off Street Parking Fund Fund Total. $4,125.29 'BAILEY SIGNS & GRAPHICS Lettering 652-8630-575 31-01 65.04 Lettering 652-8630-575.31-01 21.68 ;OLYMPIC STATIONERS INC Mat Board 652-8630-575.31-01 20.29 QWEST 07-05 A/C 36045238778178 652-8630-575.42-10 035 07-05 A/C 3604525109623B 652-8630-575.42-10 0.35 SWAIN'S GENERAL STORE INC Glue/hardware 652-8630-575.31-01 9.49 Tape/screws/tape ruler 652-8630-575.31-01 25.57 Folding Stool 652-8630-575.31-01 21.54 THURMAN SUPPLY Lighting 652-8630-575.31-01 51.25 'Esther Webster/Fine Arts Esther Webster/Fine Arts Division Total: $215.56 Esther Webster/Fine Arts Department Total: $215.56 Esther Webster Fund Fund Total: $215.56 AFLAC AFLAC SUPP INSURANCE 920-0000-231.53-10 88654 CLALLAM CNTY SUPERIOR COURT P/R Deductions pe 7-11 920-0000-231.56-30 190.73 LEOFF P/R Deductions pe 6-27 920-0000-231.51-21 22,749 16 OFFICE OF SUPPORT ENFORCEMENT P/R Deductions pe 7-11 920-0000-231.56-20 1,231.32 P/R Deductions pe 7-11 920-0000-231.56-20 169.85 PERS P/R Deductions pe 6-27 920-0000-231.51-10 1,651.25 P/R Deductions pe 6-27 920-0000-231.51-11 8,245.57 P/R Deductions pe 6-27 920-0000-231 51-12 33,106.96 TEAMSTERS LOCAL 589 P/R Deductions pe 7-11 920-0000-231.54-10 3,459.00 UNITED WAY (PAYROLL) P/R Deductions pe 7-11 920-0000-231.56-10 483.27 Division Total: $72,173.65 Department Total: $72,173.65 Payroll Clearing Fund Total: $72,173.65 Totals for check period From: 7/10/2010 To: 7/23/2010 $677,939.75 F-26 Page 19 • • • NGELES DATE: August 3, 20010 TO: CITY COUNCIL FROM: NATHAN A. WEST, DIRECTOR COMMUNITY & ECONOMIC DEVELOPMENT SUBJECT: FACADE IMPROVEMENT PROGRAM GRANT AWARDS AND CONTRACTS Summary: City-wide Facade Improvement Program award announcement and Council authorization of contract execution. Recommendation: Council should authorize the City Manager to execute contracts with award recipients. Background / Analysis: At a City Council meeting held on August 4, 2009, the Council approved a City-wide Fagade • Improvement Program. Four (4) pilot projects received funding last year totaling $25,179. Staff released a second round of requests for Fagade Improvement Grant applications in May of this year and received nine (9) applications. On July 14, 2010, the Planning Commission awarded the following 5 (five) grants totaling $ 23,974.20. FACADE APPLICATION ADDRESS GRANT AMOUNT Independent Bible Church (CBD) 112 N. Lincoln St. $ 7,150.00 Feiro Marine Life Center (CBD) 315 N. Lincoln St. $ 5,499.20 Proposed Restaurant (IL) 536 Marine Drive $10,000.00 SIGNAGE APPLICATION ADDRESS GRANT AMOUNT Michael's Seafood & Steakhouse (CBD) 117 B E. First Street $ 425.00 Athlete's Choice (CBD) 215 W. First Street $ 1,000.00 It is important to note that the values noted in the table above represent only the City award to the project. The total cost of each project exceeds the award amount by at least 50% and results in larger community wide financial benefits in new construction and improved tax assessments for each property. Each grant recipient is required to enter a contract with the City of Port Angeles prior to receiving payment of the award. Staff will work closely with the Legal Department to ensure each contract meets the City's financial obligations and requirements. Staff is requesting authorization for the • City Manager to sign and execute the contracts on behalf of the City. F-27 JOR T' GELES WASH I N G T O N, CITY COUNCIL MEMO DAZE: August 3, 2010 To: CITY COUNCIL FRom: Dennis C. Dickson, Senior Assistant City Attorney SUBJECT: Agreement for Prisoner Confinement Services with the City of Forks SUMMARY: In order to house City of Port Angeles prisoners in the Forks city jail, it is necessary to enter into a contract between the City of Port Angeles and the City of Forks. The City of Forks provided the attached Agreement for Continued Prisoner Confinement Services with yearly cost adjustments based upon the consumer price index. RECOMMENDATION: Approve the Agreement for Prisoner Confinement Services with the City Forks. BACKGROUNDIDISCUSSION: The City of Port Angeles has contracted with the City of Forks for prisoner confinement services at the Forks jail since 1998. Forks is willing to accept Port Angeles prisoners at the set rate of $45.00 per day with a special rate of $40.00 per day for a court commitment of 365 days. It is in the City's best interest to have the option of alternatives for incarceration available. The proposed contract provides for annual adjustment of the daily fee based upon Seattle Consumer Price Cost Index. The trigger date for adjustment is June 1, 2011 and each year thereafter. Continuation of the Prisoner Confinement Services Contract with the City of Forks under the pro sed contract remains a beneficial option for the City of Port Angeles. Dennis C. Dickson Senior Assistant City Attorney DCDIjd G:\L.EGAL\a MEMOAMEMOS.20101Council.Forkshil072210.wpd F-28 • • • CITY OF FORKS • INTERLOCAL AGREEMENT FOR PRISONER CONFINEMENT SERVICES This Agreement is made and entered into this 1st day of June, 2010, by and between the CITY OF FORKS, a municipal corporation (hereinafter "FORKS"), and the CITY OF PORT ANGELES, a municipal corporation (hereinafter "CITY"). REPRESENTATIONS: Pursuant to Chapters 39.34 and 70.48 RCW, FORKS and CITY may enter into an agreement, through their respective legislative bodies, whereby FORKS shall furnish jail facilities for CITY prisoners upon such terms as may be mutually agreed upon. 2. Chapter 39.34 RCW specifies that cities are responsible for the incarceration of misdemeanor and gross misdemeanor offenses committed by adults in their respective jurisdictions, and referred from their respective law enforcement agencies, whether filed under state law or city ordinance, and must carry out this responsibility through the use of their own courts, staff, and facilities, or by entering into contracts or interlocal agreements to provide these services. Such contracts or interlocal agreements are required to take into account the anticipated costs of services as well as the anticipated and potential revenues to fund the services, including fines and fees, criminal justice funding, and state authorized sales tax funding levied for criminal justice purposes. . • 3. CITY and FORKS agree that the terms and conditions set forth herein are an acceptable basis for FORKS providing prisoner jail services to CITY for persons committing misdemeanor or gross misdemeanor offenses within CITY limits. AGREEMENTS: Availability and Funding of Adult Correctional Facilities and Services: FORKS agrees to house, care for, and provide for the welfare and safekeeping of CITY prisoners within its facilities. In so doing, FORKS agrees to furnish its facilities and personnel for the confinement, processing, and related services for CITY prisoners in the same manner and to the same extent as FORKS furnishes said services for confinement, processing, and related activities of its own prisoners. FORKS jail facilities shall be made available and furnished for holding of CITY prisoners serving imposed jail terms, subject to the conditions herein. Said facilities and services shall meet the requirements of all applicable state and federal laws. 2. Definition of a CITY Prisoner: The term "CITY prisoner" as used in this Agreement shall mean a person arrested by CITY police and held and confined in the FORKS Jail, or otherwise held in detention as provided in this agreement, pursuant to a violation of a CITY ordinance or a violation of a state law which designates the crime for which the person is held to be a misdemeanor or gross misdemeanor. The term -1- • F-29 "CITY prisoner" shall not include a person arrested for a felony offense by CITY police, a person arrested on a warrant issued by another jurisdiction or for charges • initiated by a non CITY officer, or a person charged by the prosecutor with a felony or an attempt to commit a felony even if there is a plea to or conviction of a lessor offense. 3. Prisoner Confinement Daily Fee: A. Beginning 1 June 2010, CITY agrees to pay FORKS a daily per inmate fee for the housing of prisoners in the FORKS Jail. The daily confinement fee shall be charged per prisoner for each calendar day or portion thereof, excluding the release day when a prisoner has been confined for more than one day. The base daily rate shall be $45.00 each on a daily basis, FORKS will house any CITY prisoner who has a court commitment of 365 days at the special daily rate of $40.00 each day. B. This rate shall be adjusted annually, based on the Seattle CPI U. The first annual adjustment will be effective June 1, 2011 and each year thereafter. C. Prisoner fees shall be billed by FORKS each month and CITY shall pay said fees within 30 days of billing. In the event of an error, the next billing after the error was discovered, it will be adjusted appropriately. 4. Partial Confinement and Alternative Confinement Programs: CITY prisoners shall be considered for FORKS alternative and partial confinement programs on an equal basis with FORKS prisoners, and subject to the same rules and regulations, as well as potential • sanctions, for program rule violations. Prisoner participation in such programs may be limited to an operational capacity as identified by FORKS. Alternative and partial j confinement programs shall include, but not be limited to, Work Release and Work Crew. It is understood by the parties that the term alternative confinement programs shall not include electronic home monitoring. The City of Forks Jail, in cooperation with Peninsula Community College, offers a GED program to those inmates wishing to genuinely earn their GED. Where offenders pay a fee to FORKS for program participation, such fees shall be deducted from the confinement daily fee. Where CITY prisoners are in a FORKS Work Crew assignment, they shall be credited with five days "good time" for each 30 days that they are assigned to the Work Crew. If the prisoner is not on a work crew or special program that prisoner is eligible for five days good time per thirty days served. "Good time" is earned, and not automatically "given", once housed in Forks. ra F-30 U 5. Designated Administrators: The FORKS Police Chief in consultation with the CITY • Police Chief shall administer this agreement. Each administrator or designee may consult with each other quarterly regarding costs, fees and charges and regarding changes in policies, practices, or procedures, which may affect the responsibilities of the other, and will try to resolve disputes between themselves or through their designated representatives. 6. Medical Costs: Medical costs for emergency or necessary health care for CITY prisoners shall be the responsibility of CITY. CITY retains the option to contract with medical providers to provide medical services to CITY prisoners. FORKS will not transport outside of FORKS city limits for medical appointments, this will be borne by CITY if such a medical transport is necessary. FORKS shall notify CITY prior to outside medical care being provided for a CITY prisoner; provided, however, that when emergency medical care is required in life- threatening circumstances, the notification may occur as soon as practicable. No Waiver of Right to Seek Reimbursement. The above paragraphs relating to medical costs are intended solely to define the obligations between the parties to this agreement. Nothing contained within the provisions of this agreement shall be construed to waive the rights of either party to seek reimbursement for costs from the department of social and health services, or from the prisoner, or any other responsible third -party. • 7. Transportation: Transportation of CITY prisoners to the FORKS jail facilities will be provided by the FORKS Police Department as needed, but not to exceed one time per calendar week. FORKS Police Department, will travel to a mutually agreed upon location for the pick-up. The one-way rate for transportation shall be included in the daily prisoner rate. Upon release of CITY prisoners, FORKS may transport the prisoner to the Forks Transit Center. A one-way ticket toward the CITY area may be issued to the released prisoner. If the prisoner is needed for Court during incarceration in the FORKS jail, it will be the responsibility of CITY to transport the prisoner from FORKS jail to Court, and return. • 8. Transfer of Custody: When the CITY law enforcement officers are placing arrested persons in custody of FORKS, at a designated meet point between the parties or at the Forks jail, the City officer shall be required to remain in the immediate presence of the arrested person and shall be considered to have such person in their sole custody until the FORKS booking officer audibly states that the prisoner is secured; at such time and only then, will FORKS come into custody of said prisoner. When custody of a CITY prisoner is transferred to FORKS, the CITY prisoner shall be subject to all applicable rules, regulations and standards governing operation of the FORKS jail, including any emergency security rules imposed by the FORKS Chief of -3- F-31 Police or designee. Any CITY police officer delivering a prisoner to FORKS jail shall comply with reasonable rules and regulations of the FORKS jail. • 9. Release of CITY Prisoner from FORKS Jail: No CITY prisoner confined in the FORKS jail subject to this agreement shall be released except: (a) when requested by a member of CITY Police Department; (b) in compliance with orders of the court in those matters in which the courts have jurisdiction; (c) for appearance in court; (d) for interviews by CITY police or attorneys; (e) if the prisoner has served his or her sentence or the charge pending against said prisoner has been dismissed; or (f) as determined by the FORKS Chief of Police as part of a plan to reduce prisoner population as a result of facility overcrowding. 10. Record Keeping: FORKS agrees to maintain a system of record keeping relative to the booking and confinement of each CITY prisoner in such style and manner as equivalent to FORKS's records pertaining to its own prisoners. FORKS shall make available, upon request, to CITY or its authorized representatives, copies of said records. 11. CITY Access to Prisoners: All CITY police officers, investigators and the prisoner's legal counsel shall have the right to interview the prisoners at any time inside the confines of the FORKS jail, subject only to necessary security rules. Interview rooms will be made available to CITY police officers in equal priority with those of any other .... department. 12. Equal Treatment of CITY Prisoners: CITY and FORKS prisoners will be treated • equally for purposes of extradition, transportation, record keeping, and access to special detention programs. During situations where jail population exceeds maximum capacity, FORKS retains priority for the housing of FORKS prisoners. FORKS will notify CITY if prisoner(s) are to be released due to situations where jail population exceeds maximum capacity and give CITY an opportunity to transport prisoner to another jail facility. When known, FORKS will notify CITY if the jail population exceeds maximum capacity prior to the transportation of new prisoners to the facility pursuant to paragraph 7 above. 13. Hold Harmless Agreement. A. FORKS assumes full responsibility for the welfare, safety and safekeeping of all CITY prisoners while in the custody of FORKS. FORKS agrees to hold harmless, indemnify, and defend CITY its elected officials, officers, employees and agents from and against any and all suits, actions, claims, liability, damages, judgments, costs and expenses (including reasonable attorneys' fees) (also including but not limited to claims related to alleged mistreatment, injury, or death to any prisoner, or loss or damage to prisoner property while in FORKS' custody) which result from or arise out of the -4- F-32 negligence of FORKS, its elected officials, officers, employees, and agents • in connection with or incidental to the performance or non-performance of FORKS' services, duties and obligations under this Agreement. B. The CITY agrees to hold harmless, indemnify, and defend FORKS its elected officials, officers, employees and agents from and against any and all suits, actions, claims, liability, damages, judgments, costs and expenses (including reasonable attorneys' fees) (also including but not limited to a claim of false arrest, unlawful imprisonment and writs of habeas corpus proceedings) which result from or arise out of the negligence of CITY, its elected officials, officers, employees, and agents in connection with or incidental to the performance or non-performance of CITY's services, duties and obligations under this Agreement. C. In the event that the officials, officers, agents, and/or employees of both FORKS and the CITY are concurrently negligent, each party shall be liable for its contributory share of negligence for any resulting suits, actions, claims, liability, damages, judgments, costs and expenses (including reasonable attorneys' fees). D. Nothing contained in this section of this Agreement shall be construed to create a liability or a right of indemnification by any third party. E. The provisions of this section shall survive the expiration or termination of • this Agreement with respect to any event occurring prior to such expiration or termination. 14. Duration of Agreement: Subject to the provisions of RCW 39.34.040, this Agreement shall be effective on 1 June 2010, and said Agreement shall be in effect for a period of three years. This Agreement will be renegotiated every three years. The Agreement may be terminated upon written notice by either party with a minimum 90 days notice. The notice shall state the grounds for the termination and the specific plans for accommodating the affected jail population (per RCW 70.48.090 as amended). Pursuant to RCW 39.34.040, each party shall be responsible for recording a copy of this agreement with their County auditor and/or posting this agreement on the agency's web -site. 15. Disputes: Disputes relating to the interpretation or administration of this agreement that cannot be resolved by the representatives designated herein shall be referred to the FORKS Mayor and CITY Mayor or their designees for settlement. 16. Joint Undertaking or Separate Entity: Pursuant to the requirements of RCW 39.34.030(3), the parties specify the following: 1) no new or separate legal or administrative entity is created by the provisions of this agreement; 2) the parties to this Agreement are each responsible for their own duties under this agreement; 3) no -5- • F-33 joint financing or budget is required; and 4) and no real or personal property will be jointly acquired by the parties under this Agreement. All property owned by each of the parties shall remain its sole property to hold and dispose of in its sole discretion. 17. Non-Delegation/Non-Assignment: Neither party may delegate the performance of any contractual obligation, to a third party, unless mutually agreed in writing. Neither party may assign this agreement without the written consent of the other party. 18. Each Agency's officers, agents, nor employees are employees of the individual Agency for any purpose including responsibility for any federal or state tax, industrial insurance or Social Security liability. No provision of services under this Agreement shall give rise to any claim of career service or civil service right, which may accrue to an employee of the Agency under any applicable law, rule, or regulation. 19. Severability: if any provision of this contract shall be held invalid, the remainder of this contract shall not be affected thereby if such remainder would then continue to serve the purposes and objectives of both parties. DATED this l day of ''L/4.c( 2010. City Of Forks _ Mayor Chief of Police FORM: Atto -6- DATED this day of 2010. City of Port Angeles Mayor Chief of Police APPROVED AS TO FORM: City Attorney F-34 • • • • • COUNCIL DATE: AUGUST 3, 2010 TO: CITY COUNCIL FROM: Glenn A. Cutler, P.E., Director of Public Works and Utilities SUBJECT: Award 2010 Tree Trimming Contract, WF #109146-03 Summary: The City must trim trees annually to keep them a safe distance from power lines. An inspection of the power lines in June 2010 confirmed a need to trim many trees before winter. The only bid received from tree trimming companies listed on the small works roster was from Asplundh Tree Expert Company, for an hourly rate of $183.92 for a three man crew with a mobilization cost of $300.00. The City has hired Asplundh for tree trimming in the past with excellent results. Recommendation: Approve and authorize the City Manager to sign a contract with Asplundh Tree Expert Co. for tree trimming at the rate of $183.92 per hour, with $300.00 mobilization cost, in an amount not to exceed $60,000. Background/Analysis: The City must trim trees annually to keep them a safe distance from power lines and to minimize tree caused outages that normally occur during storms. An inspection of the power system in June 2010 confirmed a need to trim trees in proximity to the power lines and the priority areas of greatest need. The 2010 budget includes $60,000 for tree trimming. Bids were solicited from all tree trimming companies on the Small Works Roster. Only Asplundh Tree Expert Company responded with a bid. This was not unexpected. In the past several years, when the tree trimming has been publicly advertised for bids, only Asplundh has responded. They are the only firm locally that is certified to work near high voltage power lines. Asplundh's bid is for the work to be completed on an hourly basis at prevailing state wage rates up to an amount not to exceed $60,000. We have hired Asplundh in the past with excellent results. The rate bid is $183.92 per hour and $300.00 mobilization for a three-man crew, including a flagger as needed, with manlift truck, chipper truck, and chipper. In 2009, the hourly price for Asplundh crew and equipment was $180.71 for a three man crew. Mobilization was $300.00. It is requested that the City Council approve and authorize the City Manager to sign a contract with Asplundh Tree Expert Company for tree trimming at the rate of $183.92 per hour, with $300.00 mobilization cost, in an amount not to exceed $60,000. F-35 GELES DATE: August 3, 2010 To: City Council FROM: Glenn A. Cutler, P.E., Director of Public Works & Utilities SUBJECT: Material Purchase: Traffic Sign Materials, ST -10-013 Summary: Bids were received on July 22, 2010 for the purchase of traffic signage materials for the Streets Division. Four vendors submitted bids for this material purchase contract that allows award to multiple bidders. The three vendors that provided low responsible bids for the eleven individual bid items in the solicitation were Traffic Safety Supply from Portland, Oregon, Newman Signs, Inc., from Jamestown, North Dakota, and Custom Products Co. from Jackson, Mississippi. Recommendation: Award and authorize the City Manager to sign contracts and purchase orders with Traffic Safety Supply Co. in the amount of $20,061.21, Newman Signs, Inc., in the amount of $15,922.76, and Custom Products Co. in the amount of $5, 692.42, with sales tax included. The total amount of the contract award is $41,676.39. Background /Analysis: Bids were received on July 22, 2010 for the purchase of various traffic sign materials. This procurement is for Streets Division sign maintenance program, and to begin the process of replacing street name signs to meet federally -mandated minimum sign retro - reflectivity standards. There were eleven bid items listed on this procurement. Vendors were given the option to bid separately on each bid item, or any combination, with each bid item awarded separately to the lowest responsible bidder. The four vendors that bid on this material purchase were Traffic Safety Supply Co. of Portland, Oregon, Newman Signs, Inc., of Jamestown, North Dakota, Custom Products Co. of Jackson, Mississippi, and Correctional Industries of Tumwater, Washington. Three vendors provided the lowest responsible bids for the separate listed bid items. Traffic Safety Supply Co. provided the lowest responsible price in the amount of $20,061.21 for Bid Items 1, 3, 8, and 11. Newman Signs, Inc., provided the lowest responsible price in the amount of $16.922.76 for Bid Items 4,6,7,9, and 10. Lastly, Custom Products Co. provided the lowest responsible price in the amount of $5,692.42 for Bid Items 2 and 5. A bid summary is provided below: N:\CCOUNCIL\FINAL\Traffic Material Purchase - ST -10-013 doc F — 36 • • L Purchase Contract, ST -10-013 (Prices Include Sales Tax) Company Name Total Bid Award Amount for Bid Amount Items Traffic Safety Supply Co. $52,243.84 $20,061.21 (All bid items) Bid Item 1: $1,765.19 Bid Item 3: $4,121.91 Bid Item 8: $13,130.76 Bid Item 11: $1,043.35 Newman Signs, Inc. $45,122.00 $16,922.76 (All bid items) Bid Item 4: $11,077.22 Bid Item 6: $1,986.06 Bid Item 7: $156.86 Bid Item 9: $3,127.00 Bid Item 10: $575.62 Custom Products Co. $45,157.03 $5,692.42 Bid Item 2: $305.40 (Bid items 1, 2, Bid Item 5: $5,387.02 3, 4, 5, 6, 7, 9, 10, 11 only) Correctional Industries $43,438.74 (Bid items 2, 3, 4, 5, 6, 7, 8, 9 only) Government Estimate $53,957.75 Total Contract Award $41,676.39 It is recommended that City Council award and authorize the City Manager to sign contracts and purchase orders with Traffic Safety Supply Co. in the amount of $20,061.21, Newman Signs, Inc., in the amount of $16,922.76, and Custom Products Co. in the amount of $5,692.42, including sales tax. F-37 • • CITY OF FORT NGELES ,�a� W ASH I N G T O N, U.S.A. CITY COUNCIL MEMO DATE: AUGUST 3, 2010 TO: CITY COUNCIL FROM: YVONNE ZIOMKOWSKI, FINANCE DIRECTOR SUBJECT: WATER, WASTEWATER, STORMWATER AND ELECTRIC UTILITY BONDS Summary: Several projects have been identified that will offer long-term benefits to the Water, Wastewater, Stormwater and Electric systems. These improvements will position the City to better respond to future changes of the utility systems, including changes to rate structures. It makes good fiscal sense to take advantage of the current low interest rate environment to secure financing for these utility projects. A low interest rate and careful structuring of the bond will minimize the impact to ratepayers. Recommendation: Staff recommends that Council conduct the second reading and adopt the bond ordinances in order to take advantage of the favorable market conditions. Background / Analysis: Improvements are needed in the Water, Wastewater and Stormwater Utility Funds in the amount of $5,396,000 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 Al 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. However, after careful analysis, we determined that we may realize up to 20 basis points savings, or approximately $90,000 net savings, by purchasing bond insurance. 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. G-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 Gates as its bond counsel. The process of selling bonds includes the following steps: First, on August 2, 2010, Seattle Northwest will present the Bonds to the market for sale after a conference call with City staff and the financial advisor during which agreement will be reached regarding the interest rates and structure of the Bonds. An order period of approximately two hours will be set, during which institutions are provided the opportunity to place firm orders for the Bonds. The City staff and the financial advisor will monitor the order progress continually during the order period. At the end of the order period, the orders for each maturity of Bonds will be tallied. A determination will be made to ascertain if the interest rates should be raised for those maturities with few or no orders, or if interest rates should be reduced for maturities with orders for significantly more bonds than are available. The City and its financial advisor may concur or decline proposed changes to interest rates. After'this process is completed, Seattle Northwest will commit to purchasing the -Bonds and will draw up a purchase offer to present to the Council on August 3`d • Staff recommends conducting the second reading and adopting bond ordinances in order to take advantage of the favorable market conditions. Attachments: 1) Project List 2) Preliminary Water/Wastewater Bond Ordinance 3) Official Statement — Water/Wastewater 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 part of the Council agenda packet. The website link is www.cityofpa.us/citycouncilAgenda.htm. • G-2 CITY OF PORT ANGELES, WASHINGTON ELECTRIC REVENUE BONDS, SERIES 2010 ORDINANCE NO. 3406 AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance of electric revenue bonds of the City in the principal amount of $4,925,000 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 SectionI.I. Definitions................................................................................................................1 Section1.2. Interpretation..........................................................................................................10 ARTICLE II FINDINGS AND DETERMINATIONS Section2.1. Projects...................................................................................................................10 Section2.2. 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...................................................................12 Section 3.3. Redemption of 2010 Bonds...................................................................................15 Section3.4. Partial Redemption.................................................................................................16 Section 3.5. Notice of Redemption............................................................................................17 Section 3.6. Purchase of 2010 Bonds.........................................................................................18 ARTICLE IV ISSUANCE OF ADDITIONAL BONDS Section 4.1. Authorization of Series of Additional Bonds.........................................................18 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 Section 6.3. Investment of Funds...............................................................................................29 ARTICLE VII USE OF BOND PROCEEDS; CONSTRUCTION ACCOUNT Section 7.1. Construction Account............................................................................................30 ARTICLE VII FORM OF 2010 BONDS Section8.1. Form of 2010 Bonds..............................................................................................30 ARTICLE IX COVENANTS TO SECURE BONDS Section9.1. Security for Bonds.................................................................................................34 Section 9.2. Rate Covenant - General........................................................................................34 Section 9.3. Rate Covenant - Debt Service Coverage ..................................... ........................... 35 Section 9.4. Restrictions on Contracting of Obligations Secured by Revenues ........................35 -1- P \20391DOT20391_2A5 08/03/10 10 Section 9.5. Covenant to Maintain System in Good Condition ............................... Section 9.6. Covenants Concerning Disposal of Properties of System .................... Section9.7. Insurance.............................................................................................. Section 9.8. Books of Account................................................................................ Section 9.9. Covenant Not to Render Service Free of Charge ................................. Section 9.10. Covenant to Make Only Economically Sound Improvements ............. Section 9.11. Covenant to Pay Bond Principal and Interest Punctually .................... Section 9.12. Covenant to Pay Taxes, Assessments and Other Claims ..................... Section 9.13. Covenant to Retain Competent Management ...................................... Section 9.14. Further Assurances............................................................................... Section9.15. Tax Exemption..................................................................................... .................36 .................36 .................37 .................38 .................38 .................38 .................39 .................39 .................39 .................39 .................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 Section11.1. Execution of Instruments by Bondowners.............................................................47 Events of Default...................................................................................................41 Section 12.5. Section 11.2. Section 42.6. Waivers of Default.................................................................................................43 Section 12.7. Section 11.3. Bondowners' Trustee.............................................................................................43 Obtaining Approval of Amendments at Bondowners Meeting..............................48 Section 11.4. Section 12.9. Suits at Law or in Equity........................................................................................43 Section 11.5. Amendment of Ordinance In Any Respect by Approval of All Bondowners ........ Books of City Open to Inspection .................... Section12.11. Section 11.6. Payment of Funds to Bondowners' Trustee...........................................................44 Endorsement of Amendment on Bonds.................................................................50 Section 11.7. Application of Funds by Bondowners' Trustee.....................................................44 Section 11.8. Relinquishment of Funds Upon Remedy of Default..............................................45 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................................................................................46 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.............................................................47 Section 12.5. Appointment of Officers at Bondowners Meetings...............................................47 Section 42.6. Quorum at Bondowners Meetings.........................................................................47 Section 12.7. Vote Required to Amend Ordinance......................................................................48 Section 12.8. Obtaining Approval of Amendments at Bondowners Meeting..............................48 Section 12.9. Alternate Method of Obtaining Approval of Amendments...................................49 Section 12.10. Amendment of Ordinance In Any Respect by Approval of All Bondowners ........ 49 Section12.11. Bonds Owned by City............................................................................................49 Section 12.12. Endorsement of Amendment on Bonds.................................................................50 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 P \20391_DOT\20391_2A5 08/03/10 W - Section 13.3. Sale of 2010 Bonds................................................................................................51 Section 13.4. Official Statement..................................................................................................51 Section 13.5. Undertaking to Provide Ongoing Disclosure.........................................................51 Section 13.6. Benefits of Ordinance Limited to City, Bondowners, Insurer, and Bond Registrar.................................................................................................................54 Section 13.7. Term "City" Includes Successor............................................................................54 Section13.8. Severability............................................................................................................54 Section 13.9. General Authorization............................................................................................54 Section 13.10. Adjustment of Dollar Amounts..............................................................................54 Section13.11. Prior Acts...............................................................................................................54 Section 13.12. Effective Date of Ordinance..................................................................................54 -iii- P\20391_DOT\20391_2A5 08/03/10 ORDINANCE NO. 3406 AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance of electric revenue bonds of the City in the principal amount of $4,925,000 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 $4,925,000 (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. .r "Adjusted Net Revenues" means Net Revenues as calculated pursuant to Section 4.2.H. "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 calculated as provided in Section 4.2(K) hereof. 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 Register" means the books or records maintained by the Bond Registrar for the purpose of registration of the 2010 Bonds. "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 -2- P k20391_D01120391 2A5 08/03/10 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. "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. -3- P\20391_DOT120391_2A5 08/03/10 V . "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. "Letter of Representations" means the Blanket Issuer Letter of Representations from the City to DTC dated September 23, 1998. -4- P \20391_DOT120391 2A5 08/03/10 r 10 11 "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. "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. -5- P 120391_D0T\20391 2A5 08/03/10 r, (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 • 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: -6- P Q0391_D01V0391_2A5 06/03/10 f • 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 the insurer for the 2001 Bonds 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-1" by Moody's and "A-1+" 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 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 -7- P \20391 DO1120391 2A5 08/03/10 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. "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 -8- P \20391_D01120391 2A5 08/03/10 • F V. 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. "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. -9- P 120391 DO1120391_2A5 08/03/10 "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 $4,925,000 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 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. _10- P \20391_D0T\20391_2A5 08/03/10 •w 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 $4,925,000 to finance costs of the Projects and pay costs of issuing the 2010 Bonds. 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 -11- P \20391_DOT\20391 2A5 08/03/10 March 1 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) 2012 2013 2014 2015 2016 2017 2018 2019 2025* 2025* 2030* 2035* * Term Bonds Amount Interest Rate $130,000 3.00% 135,000 3.00 140,000 3.50 140,000 3.50 145,000 3.00 150,000 4.00 155,000 4.00 165,000 4.00 500,000 4.50 630,000 3.85 1,175,000 4.25 1,460,000 4.50 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. Section 3.2. Registration, Exchange and Paments. 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 -12- P 120391_D0T120391_2A5 08/03/10 w 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. 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. -13- P\20391_DO1120391_2A5 08/03/10 (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 to transfer or exchange any Bond during the period beginning at the opening of business on the 15th day of the month next preceding any interest payment date and ending at the close of business on such interest payment date, or, in the case of any proposed redemption of the 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 149 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 2010 Bonds will be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing -14- P X20391_D0T120391_2A5 08/03/10 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 2012 through 2019 are not subject to redemption prior to maturity. The 2010 Bonds maturing on and after September 1, 2025 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 2025 and bearing interest at the rate of 4.50%, in 2025 and bearing interest at the rate of 3.85%, in 2030, and in 2035 (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. *Maturity 2025 Term Bonds bearing interest at 4.50% Year Amount 2020 $ 75,000 2021 80,000 2022 80,000 2023 85,000 2024 90,000 2025* 90,000 RR3 P \20391_DOM0391_2A5 08/03/10 P� 2025 Term Bonds bearing interest at 3.85% Year Amount 2020 $ 95,000 2021 95,000 2022 105,000 2023 105,000 2024 110,000 2025* 120,000 *Maturity 2030 Term Bonds Year Amount 2026 $ 215,000 2027 225,000 2028 235,000 2029 245,000 2030* 255,000 *Maturity 2035 Term Bonds Year Amount 2031 $ 265,000 2032 280,000 2033 290,000 2034 305,000 2035* 320,000 *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 Term Bonds retired by purchase (through application of Sinking Fund Requirements or any other legally available funds) or redemption exceeds the cumulative Sinking Fund Requirement through such date, such excess may be credited against the Sinking Fund Requirement for the next Fiscal Year. Section 3.4. Partial Redemption. If less than all of the principal amount of any 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 —16— P \20391_D0T20391 2A5 08/03/10 ,or 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 Redemption. 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 Bond Registrar 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. -17- P \20391_D01120391 2A5 08/03/10 V 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 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 125%; -18- P \20391_D0T120391 2A5 08/03/10 16 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 (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 4.2.17 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 -19- P X20391 DO1120391_2A5 08/03/10 (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 4.2.1-1; (b) the amount of the Average Annual Debt Service in any Fiscal Year thereafter on account of all Bonds to be outstanding in such Fiscal Year and the Additional Bonds then to be issued hereunder; and (c) stating that the amount shown in (a) above is not less than 125% of the amount shown in (b) above. G. In rendering any certificate under this Section, the Professional Utility Consultant may rely upon, and such certificate shall have attached thereto, (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 -20- P 120391_DOT120391_2A5 08/03/10 (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. 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 -21- P 120391 DO1120391_2A5 08/03/10 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. 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; -22- P \20391_DOT\20391_2A5 08/03/10 (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 (v) to make all payments required to be made into any special fund or account created to pay or secure the payment of the principal of and interest on any revenue bonds, warrants or other revenue obligations of the City having a lien upon Revenues and money in the 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 Account. (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. -23- P\20391_DO1120391 2A5 08/03/10 r 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. 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 in 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 -24- P \20391 D0T120391_2A5 08/03/10 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. (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 Bonds as the same becomes due and payable, a Bond Interest Account (the "Interest Account"). So long as any 2001 Bonds 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 -25- P \20391_DOT\20391_2A5 08/03/10 installment of interest then falling 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 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 I Account, for the purpose of paying outstanding Serial Bonds as they mature and for the purpose of redeeming Term Bonds pursuant to the Sinking Fund Requirement pertaining to such Term Bonds, the following accounts each of which are equal in priority: (i) The Bond Principal Account, for the purpose of paying outstanding Serial Bonds as they mature (the "Principal Account"). 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 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. -26- P\20391 DO1V0391 2A5 08/03110 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 price (including accrued interest and any brokerage charge) not in excess of the principal amount thereof, in which event the principal amount of such Bonds so purchased shall be credited against the next ensuing Sinking Fund Requirement. If as of any September 1 the principal amount of the 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. 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. -27- P \20391_D0M0391_2A5 08/03/10 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 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. -28- P\20391 DO1120391_2A5 08/03/10 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 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. -29- P 120391 DOT120391 2A5 08/03/10 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. 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 STATE OF WASHINGTON CITY OF PORT ANGELES ELECTRIC REVENUE BOND, SERIES 2010 REGISTERED OWNER: PRINCIPAL AMOUNT: CEDE & CO. CUSIP NO: Dollars -30- P120391_DO1120391_2A5 08/03/10 k 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 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 $4,925,000 (the "2010 Bonds") issued pursuant to Ordinance No. 3406 passed by the City Council on August 3, 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. -31- P 120391_D0T120391 2A5 08/03/10 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. 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. -32- P \20391 D01120391 2A5 08/03/10 WASHINGTON STATE FISCAL AGENCY, Bond Registrar Iim 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 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. -33- P 120391_D0T20391_2A5 08/03/10 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 other money and securities hereby pledged shall immediately be subject to the lien of this pledge without any physical delivery thereof or further act, and the lien of this pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the City regardless of whether such parties have notice thereof. All Bonds now or hereafter outstanding shall be equally and ratably payable and secured hereunder without priority by reason of date of adoption of the ordinance providing for their issuance or by reason of their series, number or date of sale, issuance, execution or delivery, or by the liens, pledges, charges, trusts, assignments and covenants made herein, except as otherwise expressly provided or permitted in this ordinance and except as to insurance which may be obtained by the City to insure the repayment of one or more series or maturities within a series. The pledge of the Revenue and of the amounts to be paid into and maintained in the funds and accounts described above in this Section to pay and secure the payment of Bonds is hereby declared to be a prior lien and charge on the Revenues and the money and investments in such funds and accounts, subject to provision for operating capital and to the payment of Operating Expenses as provided in Section 6.1.13 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 -34- P k20391 DO1120391_2A5 08/03/10 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 Coverage. The City will also establish, maintain and collect rates and charges that shall be adequate to provide in each Fiscal Year Net Revenues in an amount equal to at least 1.25 times the Annual Debt Service on the then outstanding Bonds in such Fiscal Year. For the purpose of meeting the requirement of this paragraph, (i) there may be added to Net Revenues for any Fiscal Year such amount, withdrawn from the Rate Stabilization Account and deposited in the General Account, and (ii) there must be subtracted from Net Revenues for any Fiscal Year such amounts as are withdrawn from the General Account and deposited into the Rate Stabilization Account for such Fiscal Year. The City also covenants and agrees to maintain Net Revenues for the then current Fiscal Year in an amount that will be equal to the Annual Debt Service on the then outstanding Bonds in such Fiscal Year. The failure to collect Revenues in any Fiscal Year sufficient to comply with the covenants contained in this Section 9.3 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 -35- P120391 DOT20391_2A5 08/03/10 obligations or create any additional indebtedness that will rank on a parity with or prior to the charge and lien on the Revenues or properties of the Electric System for the payments into the Bond 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, 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 -36- P\20391 DO1120391_2A5 08/03/10 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 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 4.2.13 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. -37- PX20391 DOT\20391 2A5 08/03/10 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 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. -38- P X20391DOTU03912A5 08/03/10 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. Section 9.13. Covenant to Retain Competent Mana eg ment. 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 Certiftcate. 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: -39- P120391_DOT120391_2M 08/03/10 W 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. (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; -40- P \20391 D07\20391 2A5 08/03/10 r (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; (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 -41- P \20391_DOT\20391 2A5 00/03/10 Y 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; (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; (5) If the City defaults in the observance and performance of any other of the covenants, conditions and agreements on the part of the City contained in the Ordinance and such default or defaults 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 System; or (e) consents to the assumption by any court of competent jurisdiction -42- P \20391_D0T120391_2A5 08/03/10 0 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 Bands may be exercised from time to time and as often as may be deemed expedient by the Bondowners' Trustee or by such owners. The Bondowners' Trustee or the owners of not less than 50% in principal amount of the Bonds at the time outstanding, or their attorneys -in -fact duly authorized, may on behalf of the owners of all of the Bonds waive any past default under the Ordinance and its consequences, except a default in the payment of the principal of, premium, if any, or interest on any of the Bonds. No such waiver shall extend to any subsequent or other default or impair any right consequent thereon. Section 11.3. Bondowners' Trustee. So long as an Event of Default 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 -43- P\20391_00T\20391 2A5 08/03/10 4 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 times be subject to the inspection and use of the Bondowners' Trustee. 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 all Revenues and other money, securities and funds pledged under the Ordinance. Section 11.6. Payment of Funds to Bondowners' Trustee. The City covenants that if an Event of Default 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, all Revenues. Section 11.7. Application of Funds by Bondowners' Trustee. During the continuance of an Event of Default, the Revenues received by the Bondowners' Trustee pursuant to the provisions of 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 -44- P \20391_DOT\20391_2A5 08/03/10 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 Bonds due on any date, then to the payment thereof ratably, according to the amounts of principal and premium, if any, due on such date, to the persons entitled thereto, without any discrimination or preference. Section 11.8. Relinquishment of Funds Upon Remedy of Default. If and whenever all overdue installments of interest on all Bonds, together with the reasonable and proper charges, expenses and liabilities of the Bondowners' Trustee and the owners of Bonds, their respective agents and attorneys, and all other sums payable by the City under the Ordinance, including the principal of, premium, if any, and accrued unpaid interest on all Bonds then payable (with interest upon such principal and premium, if any, and, to the extent that payment of such interest is enforceable under applicable law, on overdue installments of interest, at the same rate as the rate of interest specified in the Bonds, to the date of such payment or deposit), shall either be paid by or for the account of the City, or provision satisfactory to the Bondowners' Trustee shall be made for such payment, and all defaults under the Ordinance or the Bonds shall be made good or secured to the satisfaction of the Bondowners' Trustee or provision deemed by the 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 -45- P\20391 DOT20391_2A5 08/03/10 01 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 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 Bu eer in the City of New York, New York (or in lieu of publication in The Daily Bond Buyer, in a daily newspaper printed in the English language and customarily published on each business day of general 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. -46- P \20391_D0T\20391 2A5 08/03/10 Is LIE 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. 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 12.6. Quorum at Bondowners Meetings. The owners of not less than the principal amount of the Bonds required for any action to be taken at such meeting must be present at such meeting in person or by proxy in order to constitute a quorum for the transaction of business, less than a quorum, however, having power to adjourn from time to time without any other notice than the announcement thereof at the meeting; provided, however, that, if such meeting is adjourned by less than a quorum for more than ten days, notice thereof shall be published by the City at least five days prior to the adjourned date of the meeting. -47— P 120391 DUR20391 2AS Oa/03/10 r 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 12.9, of the owners of not less than 66 2/3% in principal amount of the Bonds outstanding when such meeting is held or such consent is given; provided, however, that no such amendment 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. 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 all Bonds at the expiration of 30 days after the publication of the notice provided for in this Section, except in the event of a final decree of a court of competent jurisdiction setting aside such ordinance or annulling the action taken thereby in a legal action or equitable proceeding for such purpose commenced within such period; provided that the City and any Paying Agents during such 30 day period and any such further period during which such action or proceeding may be pending are entitled in their absolute discretion to take such action, or to refrain from taking such action, with respect to such -48- P 120391 DOM0391 2A5 08/03/10 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 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 -49- P \20391_D0T\20391 2A5 08103/10 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. 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 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 -50- P k20391_D0T\20391_2A5 08/03/10 P d 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 July 22, 2014, and ratifies the Underwriter's distribution of the Preliminary Official Statement in connection with the offering of the 2010 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 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; _51- P \20391_D01120391_2A5 08/03/10 r 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 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. -52- P 120391_D0rQ0391_2A5 08103/10 1 b A 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 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. Term ination/Modif cation. 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, (1) notice of such change shall be given in the same manner as for a material event under subsection B. above, and (Il) 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. -53- P \20391 D0TU0391_2A5 08/03/10 s Section 13.6. Benefits of Ordinance Limited to City Bondowners and Bond Registrar. Nothing in this ordinance, expressed or implied, is intended or shall be construed to confer upon or give to any person or corporation other than the City, the Bond Registrar, 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, and the Owners from time to time of the 2010 Bonds. Section 13.7. Term "City" Includes, Successors. Whenever in this ordinance the City is named or referred to, it shall be deemed to include its successors and assigns, including any successor by merger or consolidation, and all the covenants and agreements in this ordinance contained by or on behalf of the City shall bind and inure to the benefit of its successors and assigns whether so expressed or not. Section 13.8. 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 13.9. 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 13.10. 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 13.11. Prior Acts. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 13.12. Effective Date of Ordinance. This ordinance will become effective five days from and after its passage and publication as required by law. -54- - P \20391 D0T%20391 2A5 08/03/10 0 C 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 -55- P\20391_D0T\20391_2A5 08/03/10 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. 3406 (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 P \20391_D0T20391 2A5 8/3/2010 i 2 74 CITY OF PORT ANGELES, WASHINGTON WATER AND WASTEWATER UTILITY REVENUE BONDS, 2010 ORDINANCE NO. 3407 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 $5,695,000 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 I 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............................................................................19 Section8. Form of Bonds.......................................................................................................21 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 Exemptiorf.......................................................................................................30 Section17. Defeasance.............................................................................................................31 Section 18. Issuance of Future Parity Bonds.............................................................................32 Section19. Sale of Bonds.........................................................................................................34 Section 20. Official Statement..................................................................................................34 Section 21. Undertaking to Provide Ongoing Disclosure.........................................................35 Section22. Bond Insurance......................................................................................................37 Section 23. Supplements and Amendments..............................................................................45 Section 24. Lost or Destroyed Bonds........................................................................................46 Section25. Severability............................................................................................................46 Section26. Effective Date........................................................................................................46 -I- P \20391_DUR20391_2M 08/03/10 I ORDINANCE NO. 3407 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 $5,695,000 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 $5,695,000 (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: T Section 1. Definitions. As used in this ordinance the following words and phrases have the following meanings: "AGC" means Assured Guaranty Corp. or any successor thereto or assignee thereof, as provider of a municipal bond insurance policy for the 2009 Bonds. "AGM" means Assured Guaranty Municipal Corp. (formerly known as Financial Security Assurance Inc.), or any successor thereto or assignee thereof, as provider of a municipal bond insurance policy for the Bonds. "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 -2- P 120391_D01120391_2A4 08/03/10 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. "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 AGM 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 $5,695,000 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. -3- P120391_DOT120391_2A4 08/03/10 "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. "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." "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). -4- P k20391 D01120391_2A4 08/03/10 "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. Bonds. "Net Revenue" means the Gross Revenue less the Costs of Maintenance and Operation. "Parity Bonds" means the 2003 Bonds, the 2009 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) 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 books 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; 5. General Services Administration: participation certificates; 6. Government National Mortgage Association (GNMA): GNMA-guaranteed mortgage-backed bonds and GNMA-guaranteed pass-through obligations; financing; and 7. U.S. Maritime Administration: guaranteed Title XI -5- P 120391 DOT\20391 2A4 08/03/10 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 6. 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 times 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 "A3" or better by Moody's and "A" or better by S&P. -6- P \20391 DO1120391_2A4 08/03/10 K. Repurchase agreements providing for the transfer of securities from a dealer bank or securities firm (selleriborrower) 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 AGM, by AGC (so long as the 2009 Bonds remain outstanding), and by MBIA (so long as the 2003 Bonds remain outstanding): 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- P 120391_DOT120391 2M 08/03/10 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- P \20391_DO1120391_2A4 08/03/10 F. Commercial paper (having original maturities of not more than two hundred seventy (270) 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. I. 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- P k20391_D01120391_2A4 08/03/10 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 AGM, to AGC (so long as the 2009 Bonds remain outstanding), and to MBIA (so long as the 2003 Bonds remain outstanding) (each an "Eligible Provider"), provided that: 1. (i) 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 (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, AGM, AGC (so long as the 2009 Bonds remain outstanding), and MBIA (so long as the 2003 Bonds 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 AGM, AGC (so long as the 2009 Bonds remain outstanding), and MBIA (so long as the 2003 Bonds 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, AGM, AGC (so long as the 2009 Bonds remain outstanding), and MBIA (so long as the 2003 Bonds 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 -10- P \20391_DOT\20391_2A4 08/03/10 acceptable to AGM, to AGC (so long as the 2009 Bonds remain outstanding), and to MBIA (so long as the 2003 Bonds 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 AGM, by AGC (so long as the 2009 Bonds remain outstanding), and by MBIA (so long as the 2003 Bonds 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 AGM, to AGC (so long as the 2009 Bonds remain outstanding), and to MBIA (so long as the 2003 Bonds 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, AGM, AGC (so long as the 2009 Bonds remain outstanding), and MBIA (so long as the 2003 Bonds 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 AGM, AGC (so long as the 2009 Bonds remain outstanding), and MBIA (so long as the 2003 Bonds remain outstanding); 6. the City, the trustee, AGM, AGC (so long as the 2009 Bonds remain outstanding), and by MBIA (so long as the 2003 Bonds 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, AGM, by AGC (so long as the 2009 Bonds remain outstanding), and by MBIA (so long as the 2003 Bonds remain outstanding) shall -11- PM391_DO1120391_2A4 08/03/10 receive an 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 AGM, to AGC (so long as the 2009 Bonds remain outstanding), and to MBIA (so long as the 2003 Bonds 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 AGM, by AGC (so long as the 2009 Bonds remain outstanding), and by MBIA (so long as the 2003 Bonds 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, AGM, AGC (so long as the 2009 Bonds remain outstanding), and MBIA (so long as the 2003 Bonds 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- PQ0391_D01120391_2A4 08/03/10 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 AGM, by AGC (so long as the 2009 Bonds remain outstanding), and by MBIA (so long as the 2003 Bonds 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 12 of this ordinance. -13- P 120391_DO1120391_2A4 08/03/10 "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) 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 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 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, or its successor. "Serial Bonds" means Parity Bonds other than Term 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 fund payments are required, including the Bonds identified as such in Section 7(b) of this ordinance. "Underwriter" means Seattle -Northwest Securities Corporation. -14- P\20391 DOT\20391_2A4 08/03/10 "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. 3148 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 Utility. 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 Proiects. 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: -15- PX20391 D01120391_2A4 08/03/10 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 $5,695,000 (the "Bonds"). The Bonds will be designated as the "City of Port Angeles, Washington, Water and Wastewater Utility Revenue Bonds, 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 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: * Term Bonds Maturity Year Principal Interest (November 1) Amount Rate 2030* $3,140,000 4.00% 2034* 2,555,000 4.25 -16- P \20391 _DOT)20391 _2A4 08/03/10 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 Registrar/Bond 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. (c) DTC Acceptance/Letter 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 Fetter 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 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 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. -17- P 120391_DDT120391_2A4 08/03110 (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. r (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 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 -18- PX20391 D0T\20391_2A4 08/03/10 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 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 on or after November 1, 2030 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, 2030 and November 1, 2034 (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 2010 Term Bonds have not been previously redeemed or purchased) and in the principal amounts -19- P k20391_D0T120391_2A4 08/03/10 set forth below, without premium, together with the interest accrued to the date fixed for redemption. 2030 Term Bonds Year Amount 2025 $475,000 2026 490,000 2027 510,000 2028 535,000 2029 555,000 2030* 575,000 * Maturity 2034 Term Bonds Year Amount 2031 $600,000 2032 625,000 2033 650,000 2034** 680,000 * * 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. 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 -20- P 120391_DOT120391_2A4 08/03/10 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, (7) the CUSIP numbers of all Bonds being redeemed, (8) 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 duly 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. Section 8. Form of Bonds. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $. Assured Guaranty Municipal Corp. (formerly known as Financial Security Assurance Inc.) ("AGM"), New York, New York, has delivered its municipal bond insurance policy (the "Policy") with respect to the scheduled payments due of principal of and interest on this Bond to The Bank of New York Mellon, New York, New York, or its successor, as paying agent for the Bonds (the "Paying Agent'). Said Policy is on file and available for inspection at the principal office of the Paying Agent and a copy thereof may be obtained from AGM or the Paying Agent. All payments required to be made under the Policy shall be made in accordance with the provisions thereof. The owner of this Bond acknowledges and consents to the subrogation rights of AGM as more fully set forth in the Policy. -21- P \20391_DOT120391_2A4 08/03/10 STATE OF WASHINGTON CITY OF PORT ANGELES WATER AND WASTEWATER UTILITY REVENUE BOND, 2010 INTEREST RATE: MATURITY DATE: REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: Dollars CUSIP NO: 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 duly 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 $5,695,000 (the "Bonds"), issued pursuant to Ordinance No. 3407 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 "1994 Water and Wastewater Utility Revenue Bond Fund" ("Bond Account") established by Ordinance No. 2843 of the City. The 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 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 -22- P\20391_D01120391_2A4 08/03/10 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 transferred and 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 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 seal of the City to be impressed or reproduced hereon, all as of .2010. CITY OF PORT ANGELES, WASHINGTON (SEAL) By [Manual or Facsimile Signature] Mayor -23- P\20391_D01120391_2A4 08/03/10 Attest: [Manual or Facsimile Signature] 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 2 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 bond 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- P 120391 DO1120391_2A4 08/03/10 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, and shall 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 10. 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 11. 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 AGM 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- P\20391_D01120391_2A4 08/03/10 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 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 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 and wastewater 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 13 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 11 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 15 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- P \20391_DOT\20391_2A4 08/03/10 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 funds 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- P U0391_DOT120391_2M 08/03/10 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 11 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 14. Adequacy 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 Agreements. 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) Rates 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 Bonds as and when the same become due and -28- Pk20391_D0T\20391_2A4 08103/10 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 manner 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 AGC (so long as the 2009 Bonds are outstanding) and AGM 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 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 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 Q0391_DOM0391_2A4 08/03110 (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 Exemption. (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 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 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 Bonds, the Finance Director is authorized to execute a federal tax certificate (the "Tax Certificate"), which will certify to various facts and representations concerning the Bonds, based on the facts and estimates known -30- P\20391_D0TV0391_2A4 08/03/10 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 further 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 manner 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 17. 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 \20391_D01120391_2A4 08/03/10 right to receive the money so set aside and pledged, and those Bonds will be deemed not to be outstanding hereunder. Within thirty (30) days of any defeasance of Bonds, the City will provide notice of defeasance of Bonds to AGM 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 Revenue Fund sufficient 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 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 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- P \20391_D01120391_2A4 08!03/10 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 2003 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 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. 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- PX20391_D01120391_2A4 08/03/10 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 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. 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 xemedy 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. The City may not issue variable rate obligations payable from Gross Revenue without the prior written consent of AGC (so long as the 2009 Bonds are outstanding) and AGM. Section 19. 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 July 22, 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- P\20391_001120391 2A4 08/03/10 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 Ongoing 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 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 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"; for Parity Bonds; (2) The principal amount of Parity Bonds and debt service coverage (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 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 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- P120391 D0T20391_2A4 08/03/10 (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 information described in subsection (a) above on or prior to the date set forth in subsection (a) above. (d) EMMA; Format for 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) Term inationlModification. The City's obligations to provide annual financial information and notices of material events shall terminate upon the defeasance, prior redemption or payment in full of all of the Bonds. Any provision of 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- P\20391_D0T120391_2A4 08/03/10 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 This Section. 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" 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. Section 22. Bond Insurance. (a) Acceptance of Insurance. In accordance with the offer of the Underwriter to purchase the Bonds, the Council hereby approves the commitment of Assured Guaranty Municipal Corp. ("AGM") to provide a bond insurance policy guaranteeing the payment when due of principal of and interest on the Bonds (the "Bond Insurance Policy"). The Council further authorizes and directs all proper officers, agents, attorneys and employees of the City to cooperate with AGM in preparing such additional agreements, certificates, and other documentation on behalf of the City as shall be necessary or advisable in providing for the Bond Insurance Policy. The following provisions of this Section 22 shall apply so long as the Bond Insurance Policy is in effect. (b) Notices and Other Information. Any notice that is required to be given to holders of the Bonds (the "Bondholders"), the MSRB, .pursuant to the Rule or to the Bond Registrar pursuant to this ordinance shall also be provided to AGM , simultaneously with the sending of such notices. In addition, all information furnished pursuant to Section 21 of this ordinance shall also be provided to AGM, simultaneously with the furnishing of such information. All notices required to be given to AGM shall be in writing and shall be sent by registered or certified mail addressed to: Assured Guaranty Municipal Corp., 31 West 52nd Street, New York, New York 10019, (Re: Policy No. __), Attention: General Counsel, with a copy to Assured Guaranty Corp., Attention: Risk Management Department -Public Finance Surveillance. (1) AGM shall have the right to receive such additional information as it may reasonably request. -37- P120391_DOT120391_2A4 08/03/10 (2) The City will permit AGM to discuss the affairs, finances and accounts of the City or any information AGM may reasonably request regarding the security for the Bonds with appropriate officers of the City, and will use best efforts to enable AGM to have access to the facilities, books and records of the City on any business day upon reasonable prior notice. (3) The Bond Registrar shall notify AGM of any failure of the City to provide notices, certificates and other information under this ordinance. (4) The City shall provide to AGM: (i) the fiscal year budget of the City, with respect to the System, within 30 days after the adoption of such budget; (ii) not later than 180 days after the end of the fiscal year of the City the unaudited financial statements of the City, with respect to the System, and the audited financial statements of the City, with respect to the System, once available, together with a certificate of the City stating that no event of default has occurred or is continuing under this ordinance; (iii) notice of any withdrawal of from the Reserve Account within two business days after knowledge thereof other than (a) withdrawals of amounts in excess of the Reserve Account Requirement and (b) withdrawals in connection with a refunding of any Parity Bonds; (iv) notice of any default known to the Bond Registrar within five business days after actual knowledge thereof; (v) prior notice of the advance refunding or redemption of any of the Bonds, including the principal amount, maturities and CUSIP numbers thereof, (vi) notice of the commencement of any proceeding by or against the City commence under the United States Bankruptcy Code or any other applicable bankruptcy, insolvency, receivership, rehabilitation or similar law; (vii) notice of making of any claim in connection with any insolvency proceeding seeking the avoidance as a preferential transfer of any payment of principal of, or interest on, the Bonds; (viii) a full original transcript of all proceedings relating to the execution of any amendment or supplement to this ordinance; (ix) prior to issuing Future Parity Bonds, any official statement or disclosure document or financing agreement pertaining to such Future Parity Bonds, which shall include, without limitation, the applicable maturity schedule, -38- P\20391_DO1120391_2A4 08/03/10 interest rates, redemption and security provisions pertaining to such Future Parity Bonds; and (x) within 30 days following any litigation or investigation that may have a material adverse affect on the Gross Revenue or the System, notice of such litigation or investigation. (c) Defeasance. Notwithstanding anything herein to the contrary, in the event that the principal and/or interest due on the Bonds shall be paid by AGM pursuant to the Bond Insurance Policy, the Bonds shall remain outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the City, and all covenants, agreements and other obligations of the City to the Registered Owners shall continue to exist and shall run to the benefit of AGM, and AGM shall be subrogated to the rights of such Registered Owners including, without limitation, any rights that such Registered Owners may have in respect of securities law violations arising from the offer and sale of the Bonds. In the event that the Bonds are defeased pursuant to Section 17 of this ordinance, AGM shall receive: (1) An opinion of bond counsel stating that (i) such defeasance will not adversely impact the exclusion from gross income for federal income tax purposes of interest on the Bonds and (ii) the Bonds are no longer outstanding under this ordinance. (2) An escrow agreement and an opinion of bond counsel regarding the validity and enforceability of the escrow agreement. The escrow agreement shall provide that: (xi) Any substitution of securities shall require verification by an independent certified public accountant and the prior written consent of AGM. (xii) The City will not exercise any optional redemption of the bonds secured by the escrow agreement or any other redemption other than mandatory sinking fund redemptions unless (i) the right to make any such redemption has been expressly reserved in the escrow agreement and such reservation has been disclosed in detail in the official statement for the refunding bonds, and (ii) as a condition of any such redemption there shall be provided to AGM a verification of an independent certified public accountant as to the sufficiency of escrow receipts without reinvestment to meet the escrow requirements remaining following such redemption. (xiii) The City shall not amend the escrow agreement or enter into a forward purchase agreement or other agreement with respect to rights in the escrow without the prior written consent of AGM. The documents listed in (c) above shall be delivered to AGM no later than five (5) days prior to the funding of the escrow. -39- P 120391 DOTt20391 2A4 08/03/10 (d) Bond Registrar. AGM shall receive prior written notice of any name change of the Bond Registrar or the removal, resignation or termination and replacement of the Bond Registrar. (e) Amendments and Supplements. With respect to amendments or supplements to this ordinance that do not require the consent of the Bondholders, Assured Guaranty must be given prior written notice of any such amendments or supplements. With respect to amendments or supplements to this ordinance that do require the consent of the Bondholders, AGM's prior written consent is required. Any amendments or supplements to this ordinance that are consented to by AGM shall be sent to the rating agencies that have assigned a rating to the Bonds. Notwithstanding any other provision of this ordinance, in determining whether the rights of Bondholders will be adversely affected by any action taken pursuant to the terms and provisions thereof, the City shall consider the effect on the Bondholders as if there were no Bond Insurance Policy. (f) Insurer as Third Party Beneficiary. To the extent that this ordinance confer upon or gives or grants to AGM any right, remedy or claim under or by reason of this ordinance, AGM is explicitly recognized as being a third parry beneficiary hereunder and may enforce any such right, remedy or claim conferred, given or granted hereunder. (g) Control Rights. AGM shall be deemed to be the holder of all of the Bonds for purposes of (1) exercising all remedies and directing the Bond Registrar to take actions or for any other purposes following an event of default, and (2) granting any consent, waiver, direction or approval or taking any action permitted by or required under this ordinance, to be granted or taken by the Bondholders. Anything in this ordinance to the contrary notwithstanding, upon the occurrence and continuance of an event of default as defined herein, AGM shall be entitled to control and direct the enforcement of all rights and remedies granted to the Bondholders or the Bond Registrar for the benefit of the Bondholders under this ordinance subject to the rights of other Parity Bond owners. (h) Consent of AGM. Any provision of this ordinance expressly recognizing or granting rights in or to AGM may not be amended in any manner that affects the rights of AGM hereunder without the prior written consent of AGM. (i) Consent of AGM in Addition to Bondholder Consent. Wherever this ordinance require the consent of Bondholders, AGM's prior written consent shall also be required. 0) Consenrof AGM in the Event of Insolvency. To the extent permitted by law, any reorganization or liquidation plan with respect to the City must be acceptable to AGM. In the event of any such reorganization or liquidation, AGM shall have the right to vote on behalf of all Bondholders who hold Bonds guaranteed by AGM, absent a payment default by AGM under the Bond Insurance Policy. -40- P \20391_DO1120391_2A4 08/03/10 (k) Payment Procedure Under the Bond Insurance Policy. At least two (2) business days prior to each payment date on the Bonds, the Bond Registrar will determine whether there will be sufficient funds to pay all principal of and interest on the Bonds due on the related payment date and shall immediately notify AGM or its designee on the same business day by telephone or electronic mail, confirmed in writing by registered or certified mail, of the amount of any deficiency. Such notice shall specify the amount of the anticipated deficiency, the Bonds to which such deficiency is applicable and whether such Bonds will be deficient as to principal or interest or both. If the deficiency is made up in whole or in part prior to or on the payment date, the -Bond Registrar shall so notify AGM or its designee. (1) The Bond Registrar shall, after giving notice to AGM as provided above, make available to AGM and, at AGM's direction, to any fiscal agent, the registration books of the City maintained by the Bond Registrar and all records relating to the funds maintained under this ordinance. (2) For so long as all Bonds are in fully -immobilized form, payments of principal and interest shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. In the event that the Bonds are no longer in fully -immobilized form, the Bond Registrar shall provide AGM and any fiscal agent with a list of Registered Owners of Bonds entitled to receive principal or interest payments from AGM under the terms of the Bond Insurance Policy, and shall make arrangements with AGM, the fiscal agent or another designee of AGM to (i) mail checks or drafts to the Registered Owners of Bonds entitled to receive full or partial interest payments from AGM and (ii) pay principal upon Bonds surrendered to AGM, the fiscal agent or another designee of AGM by the Registered Owners of Bonds entitled to receive full or partial principal payments from AGM. (3) The Bond Registrar shall, at the time it provides notice to AGM of any deficiency pursuant to clause (1) above, notify Registered Owners of Bonds entitled to receive the payment of principal or interest thereon from AGM (i) as to such deficiency and its entitlement to receive principal or interest, as applicable, (ii) that AGM will remit to them all or a part of the interest payments due on the related payment date upon proof of its entitlement thereto and delivery to AGM or any fiscal agent, in form satisfactory to AGM, of an appropriate assignment of the Registered Owner's right to payment, (iii) that, if they are entitled to receive partial payment of principal from AGM, they must surrender the related Bonds for payment first to the Bond Registrar, which will note on such Bonds the portion of the principal paid by the Bond Registrar and second to AGM or its designee, together with an appropriate assignment, in form satisfactory to AGM, to permit ownership of such Bonds to be registered in the name of AGM, which will then pay the unpaid portion of principal, and (iv) that, if they are entitled to receive full payment of principal from AGM, they must surrender the related Bonds for payment to AGM or its designee, rather than the Bond Registrar, together with the an -41- P k20391 DOT\20391 2A4 08/03/10 appropriate assignment, in form satisfactory to AGM, to permit ownership of such Bonds to be registered in the name of AGM. (4) In addition, if the Bond Registrar has notice that any holder of the Bonds has been required to disgorge payments of principal of or interest on the Bonds previously due for payment pursuant to a final non -appealable order by a court of competent jurisdiction that such payment constitutes an avoidable preference to such holder within the meaning of any applicable bankruptcy laws, then the Bond Registrar shall notify AGM or its designee of such fact by telephone or electronic notice, confirmed in writing by registered or certified mail. (5) The Bond Registrar will be hereby irrevocably designated, appointed, directed and authorized to act as attorney-in-fact for Bondholders as follows: (i) If and to the extent there is a deficiency in amounts required to pay interest on the Bonds, the Bond Registrar shall (a) execute and deliver to AGM, in form satisfactory to AGM, an instrument appointing AGM as agent for such holders in any legal proceeding related to the payment of such interest and an assignment to AGM of the claims for interest to which such deficiency relates and which are paid by AGM, (b) receive as designee of the respective holders (and not as Bond Registrar) in accordance with the tenor of the Bond Insurance Policy payment from AGM with respect to the claims for interest so assigned, and (c) disburse the same to such respective holders; and (ii) If and to the extent of a deficiency in amounts required to pay principal of the Bonds, the Bond Registrar shall (a) execute and deliver to AGM, in form satisfactory to AGM, an instrument appointing AGM as agent for such holder in any legal proceeding related to the payment of such principal and an assignment to AGM of the Bonds surrendered to AGM in an amount equal to the principal amount thereof as has not previously been paid or for which moneys are not held by the Bond Registrar and available for such payment (but such assignment shall be delivered only if payment from AGM is received), (b) receive as designee of the respective holders (and not as Bond Registrar) in accordance with the tenor of the Bond Insurance Policy payment therefore from AGM, and (c) disburse the same to such holders. (6) Payments with respect to claims for interest on and principal of Bonds disbursed by the Bond Registrar from proceeds of the Bond Insurance Policy shall not be considered to discharge the obligation of the City with respect to such Bonds, and AGM shall become the owner of such unpaid Bond and claims for the interest in accordance with the tenor of the assignment made to it under the provisions of this subsection or otherwise. -42- P \20391_DO1120391 2A4 08/03/10 (7) Irrespective of whether any such assignment is executed and delivered, the City hereby agrees for the benefit of AGM that: (i) it recognizes that to the extent AGM makes payments directly or indirectly (e.g., by paying through the Bond Registrar), on account of principal of or interest on the Bonds, AGM will be subrogated to the rights of such holders to receive the amount of such principal and interest from the City, with interest thereon as provided and solely from the sources stated in this ordinance and the Bonds; and (ii) it will accordingly pay to AGM the amount of such principal and interest, with interest thereon as provided in this ordinance and the Bonds, but only from the sources and in the manner provided herein for the payment of principal of and interest on the Bonds to holders, and will otherwise treat AGM as the owner of such rights to the amount of such principal and interest. (iii) The City hereby agrees to pay or reimburse AGM all amounts paid by AGM under the Bond Insurance Policy and to the extent permitted by law any and all charges, fees, costs and expenses that AGM may reasonably pay or incur, including, but not limited to, fees and expenses of attorneys, accountants, consultants and auditors and reasonable costs of investigations, in connection with (i) any accounts established to facilitate payments under the Bond Insurance Policy, (ii) the administration, enforcement, defense or preservation of any rights in respect of the trust agreement or any other financing document, including defending, monitoring or participating in any litigation or proceeding (including any bankruptcy proceeding in respect of the City or any affiliate thereof) relating to this ordinance, any party to this ordinance or any other financing document or the transaction contemplated by this ordinance; (iii) the pursuit of any remedies under this ordinance, to the extent such costs and expenses are not recovered from other sources, or (iv) any amendment, waiver or other action with respect to, or related to, this ordinance whether or not executed or completed; costs and expenses shall include a reasonable allocation of compensation and overhead attributable to time of employees of AGM spent in connection with the actions described in clauses (ii) - (iv) above. In addition, AGM reserves the right to charge a reasonable fee as a condition to executing any amendment, waiver or consent proposed in respect of this ordinance. The City will pay interest on the amounts owed in this paragraph from the date of any payment due or paid, at the per annum rate of interest publicly announced from time to time by JP Morgan Chase Bank, National Association, or its successor, at its principal office in New York, New York as its prime lending rate (any change in such prime rate of interest to be effective on the date such change is announced by JPMorgan Chase Bank, National Association) plus three percent (3%) per annum (the "Reimbursement -43- P 120391_DO1120391_2A4 08/03/10 Rate"). The Reimbursement Rate shall be calculated on the basis of the actual number of days elapsed over a 360 -day year. In the event JPMorgan Chase Bank ceases to announce its prime rate publicly, the prime rate shall be the publicly announced prime rate or base lending rate of such national bank, as AGM shall specify. (8) In addition to any and all rights of reimbursement, subrogation and any other rights pursuant hereto or under law or in equity, to the extent permitted by law the City agrees to pay or reimburse AGM any and all charges, fees, costs, claims, losses, liabilities (including penalties), judgments, demands, damages, and expenses that AGM or its officers, directors, shareholders, employees, agents and each person, if any, who controls AGM within the meaning of either Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended, may reasonably pay or incur, including, but not limited to, fees and expenses of attorneys, accountants, consultants and auditors and reasonable costs of investigations, of any nature in connection with, in respect of or relating to the transactions contemplated by this ordinance by reason of: (i) any omission or action (other than of or by AGM) in connection with the offering, issuance, sale, remarketing or delivery of the Bonds; (ii) the negligence, bad faith, willful misconduct, misfeasance, malfeasance or theft committed by any director, officer, employee or agent of the City or the City in connection with any transaction arising from or relating to this ordinance; (iii) the violation by the City of any law, rule or regulation, or any judgment, order or decree applicable to it; (iv) the breach by the City of any representation, warranty or covenant under this ordinance or the occurrence, in respect of the City, under this ordinance of any event of default or any event which, with the giving of notice or lapse of time or both, would constitute any "event of default"; or (v) any untrue statement or alleged untrue statement of a material fact contained in any official statement, if any, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except insofar as such claims arise out of or are based upon any untrue statement or omission in information included in an official statement, if any, and furnished by AGM in writing expressly for use therein. (9) AGM shall be entitled to pay principal of or interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the City (as such terms are defined in the Bond Insurance Policy), whether or not -44- P 120391_DO1120391_2A4 08/03/10 AGM has received a Notice (as defined in the Bond Insurance Policy) of Nonpayment or a claim upon the Bond Insurance Policy. (10) In addition, AGM shall, to the extent it makes any payment of principal of or interest on the Bonds become subrogated to the rights of the recipients of such payments in accordance with the terms of the Bond Insurance Policy, and to evidence such subrogation (i) in the case of claims for interest, the Bond Registrar shall note AGM's rights as subrogee on the registration books of the City maintained by the Bond Registrar, upon receipt of proof of payment of interest thereon to the registered holders of the Bonds, and (ii) in the case of claims for principal, the Bond Registrar, if any, shall note AGM's rights as subrogee on the registration books of the City maintained by the Bond Registrar, upon surrender of the Bonds together with receipt of proof of payment of principal thereof. (1) No Purchase by City. Without the prior written consent of AGM, no Bonds insured by AGM shall be purchased by the City, or any of its affiliates, in lieu of redemption, unless such Bonds are redeemed, defeased or cancelled. (m) Interest Rate Exchange Agreements. The City may not enter into an interest rate exchange agreement without the prior written consent of AGM. 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 -45- P=391_DOTA20391_2M 08/03/10 nationally recognized bond counsel to the effect that such supplemental ordinance complies with 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 furnishes 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. -46- P M391_00i120391_2M 08103/10 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 -47- P 120391_DOT120391 2A4 08/03/10 CERTIFICATE OF CITY CLERK 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. 3407 (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. 2010. IN WITNESS WHEREOF, I have hereunto set my hand this day of August, City Clerk P %20391_DO1120391 2M 08/03/10 s VGELES WASH ING TON, CITY COUNCIL MEMO DATE: AUGUST 3, 2010 TO: CITY COUNCIL FROM: KENT MYERS, CITY MANAGER SUBJECT: UNFUNDED MANDATES Summary: The City of Port Angeles continues to be impacted financially by a number of recent state and federal mandates. Recommendation: It is recommended that the City take a position against the continuation of unfunded State and Federal mandates. • During a recent Association of Washington Cities (AWC) Conference municipal officials expressed concerns about the increasing number of State and Federal unfunded mandates impacting local communities. • At the conference, the AWC encouraged legislative and administrative solutions that are free of unfunded mandates and expressed the organization's strong opposition to additional mandates unless they are accompanied by appropriate financial resources. Councilmember Cherie Kidd attended this recent AWC Conference and passed along this information with a suggestion that the City Council pass a resolution adopting a similar position against unfunded mandates. H-1 Draft #2, 7/28/10, dl Legal Dept RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, stating its support for continued partnership with the Federal Government in funding local public safety, transportation and infrastructure projects, and its opposition to additional state and federal unfunded mandates. WHEREAS, the City of Port Angeles recognizes it's responsibility to provide public safety services, needed infrastructure, and a host of other critical services and programs to City residents; and WHEREAS, the City also recognizes that it has limited resources, and that those resources continue to decline; and • WHEREAS, the City Council of Port Angeles strongly opposes additional state and • federal mandates unless they are accompanied by appropriate financial resources and are compelled by significant public interests; and WHEREAS, the City Council of Port Angeles encourages legislative and administrative solutions that are free of unfunded mandates; NOW, THEREFORE, the City Council of the City of Port Angeles, hereby states its support for continued partnership with State and Federal Governments in funding local public safety, transportation, infrastructure projects, planning, economic development, and human services, and its opposition to additional state and federal unfunded mandates. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of August, 2010. MAYOR • -1- H-2 • Draft #2, 7/28/10, dl Legal Dept • ATTEST: APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney G \LEGAL\a ORDINANCES&RESOLUTIONS\RESOLUTIONS 2010\16 Unfiiuded Mandates 072810 wpd (July 28, 2010) —2— H-3 • • 70RT DATE: August 3, 2010 TO: CITY COUNCIL NGELES FROM: NATHAN WEST, DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT SUBJECT: Consultant Selection for the Waterfront Transportation Improvement Plan Summary: Following responses to a request for proposals relative to the Waterfront Transportation Improvement Plan (WTIP), thirteen proposals were received. From these proposals and subsequent interviews, Studio Cascade of Spokane, Washington was selected as the firm with the proposal that best satisfied the evaluation criteria. Recommendation: 1.) Select Studio Cascade as the proposer to complete the Waterfront Transportation Improvement Plan and design work including Phase I and II of the project; 2.) Authorize the City Manager to sign a professional consultant agreement with Studio Cascade for Phase I tasks associated with the Waterfront Transportation Improvement amount not to exceed $484,000; 3.) Authorize the City Manager to make minor modifications to the standard professional services agreement as required. Background / Analysis: The City has prioritized completing capital projects in conjunction with the American Institute of Architects Sustainable Design Assessment Team recommendations. On April 16, 2010 staff released a request for proposals for consultant services for implementation of a comprehensive project described as the Waterfront Transportation Improvement Plan (WTIP). The project incorporates the Waterfront Development Project, the Signage and Wayfinding Project, Entryway Monuments, and the Transportation Comprehensive Plan. These projects are identified as GG03- 2009, TRO 1-2006, TR09-2009, and TR02-2003 in the City's Capital Facilities Plan. Additional implementation suggestions have also been incorporated in the project scope where possible. Completion of the project will result in construction drawings for the Waterfront Development Project including a waterfront promenade. It further incorporates a Citywide Signage and Wayfinding handbook as well as six signs to be constructed and on the ground by the end of 2010. The Transportation Comprehensive Plan satisfying Washington State Growth Management Act requirements will also be an important deliverable associated with the project. Additional details are in the Scope of Work identified as Attachment A to this staff report. In May, thirteen firms submitted proposals in response to a City request for planning services for tasks associated with both projects. Of the thirteen firms, four were chosen to interview in early July. A selection panel consisting of Mayor Dan DiGuilio, City Manager Kent Myers, a 1-1 representative of the Port of Port Angeles, a representative of Port Angeles Forward Committee, and two City staff members conducted the interviews. From the interviews Studio Cascade of • Spokane was selected as the firm best meeting the evaluation criteria identified in the request for proposals. The evaluation criteria included: • Responsiveness to RFP Details • Team Qualifications & Experience • Approach/Project Understanding • Waterfront Design Concept • Team Schedule and Availability • Overall Presentation As part of the request for proposals, the involvement of local professionals was strongly encouraged. Studio Cascade has incorporated Zenovic and Associates as a local representative for their team. Additional team members include: LMN Architects (Seattle), HBB Landscape Architecture (Seattle), Walkable and Livable Communities Institute, Inc. (Port Townsend), Fehr & Peers (Seattle), and AECOM Design and Planning (Seattle). Collectively these firms have been responsible for a variety of successful waterfront development projects including: * Bellingham GP Mill, Old Town, Fairhaven - LMN & SCI * Anacortes Cap Sante - HBB * Bremerton conference center - LMN * Spokane downtown design guidelines & river gorge master plan - LMN & SCI • * Stromness urban design framework (Scotland) - SCI * Coeur d'Alene design guidelines - LMN * Fidalgo Island subarea plan - SCI * Edmonds waterfront plan - LMN * Green River (King Co) - HBB * Everett marina - HBB Studio Cascade has made a dedicated effort to reduce travel costs. As part of the schedule, they have concentrated visits into week-long stays. Additionally, they have eliminated travel costs from the budget entirely, indicating that they are excited about the project and do not want to penalize the City for the time it takes to arrive on site. They will further incorporate videoconferencing at every opportunity to ensure that there is fluid and effective communication with the City. The followine cost allocations illustrate the approximate breakdown for Phase 1 of the Droiect TASK BUDGET 1. Waterfront (Phase 1) $205,020 2. Wayfinding & Entryway Monuments (Phase 1) $118,560 3. Transportation (Phase 1) $72,220 4. Outreach, Coordination & Project Management (Phase l) $68,200 5. Unanticipated (Phase 1) $20,000 TOTAL (Phase 1) $484,000 1-2 • Phase II which incorporates construction drawings for the Waterfront Development project and . completion of the Transportation Comprehensive Plan is anticipated to cost an additional $330,000. This figure may change depending on the final Waterfront Development concept adopted by Council. Once the concept is selected, a contract for Phase II will be negotiated. • • City Staff and Studio Cascade have begun negotiating an Agreement for Professional Services. The Agreement will consist of the City's standard consultant agreement and will not exceed $484,000. Staff is requesting that Council select Studio Cascade to complete the planning and design associated with Phases I and II of the Waterfront Transportation Improvement Plan. Additionally, staff is requesting that Council authorize the City Manager to execute a standard professional services agreement with minor modifications as necessary. Staff is available to answer any questions. Studio Cascade will be present for questions via video conference at the August 3rd meeting. 1-3 EXHIBIT A Port Angeles WTIP Scope Studio Cascade (CONSULTANT) and its subconsultants (LMN Architects, HBB, Fehr and Peers, WALC/AECOM and Zenovic and Associates) agree to furnish the City of Port Angeles (CITY) additional planning, design and wayfinding services as described in this Exhibit, according to the project schedule at the end of this document, per the approved agreement for professional services. The budget for each of the tasks presented in this scope of work is included in Exhibit B. Exhibit B includes labor costs and expenses related to all professional services and project management, accounting, and other associated overhead expenses. The task budget subtotals represent the not -to -exceed budget limits to be adhered to by CONSULTANT. Managing to the task budget subtotals shall be accomplished in recognition that some subtask budgets may be exceeded while others are more than adequate to cover project costs. 1. Waterfront, Phase One The end result of this portion of the project will be production of a design concept with generalized cost estimates for the waterfront, Railroad Avenue, the two -acre park at the west end of the waterfront and two green streets perpendicular to the waterfront esplanade. We will identify work tasks and budget for design development for the entire waterfront/park/green street concept as part of phase one. • Public involvement will also be an important part of the design/development phase, ensuring an adequate . level of public input into the design process. This is an implementation project, so public participation strategies will be designed to help the project keep moving forward. 1.1 — Baseline We will compile mapping, policy, studies and other baseline data as relevant to the design process, coordinating with the City to acquire information from it and other public agencies as appropriate. 1.2 — Schematic design We will conduct a team -oriented design workshop, client meetings and production of schematic waterfront design alternatives for City and community review into a week-long schematic design exercise. This task will include a four-day workshop involving the project's core design and wayfinding team, with varying levels of involvement of the transportation and engineering consultants, ensuring a comprehensive approach to schematic design. 1.3 — Client meeting We will meet with the City periodically during the schematic design workshop and at the workshop's conclusion to review workshop results, discuss possible design options and get direction on a preferred design alternative for further refinement. 1.4 — Design alternatives We will refine the concepts developed at the team charrette into a preferred alternative, readying it for display at a public open house, exploring design concepts for Railroad Avenue, the esplanade, the west- • Im • end park and associated street intersections. This will include illustrative site plans, elevations, sections and renderings as necessary to convey the design concepts. 1.5 — Open house preparation We will prepare materials for a waterfront design open house, including display boards, questionnaires and small group exercises to involve the community in the review and shaping of the waterfront design. 1.6 — Design concept We will incorporate public comment and agency direction into a revised design concept for Railroad Avenue, the esplanade, park and green streets, producing site plans, elevations, sections and renderings as appropriate to illustrate fully the design concepts. 1.7 — Client meeting We will meet with the client to review the 70% - 80% complete conceptual design package, soliciting comment and direction. This meeting can be arranged to coincide with a review meeting with the City Council, Port Angeles Forward or other group the City believes should be included at this intermediate part of the process. 1.8 — Design revisions We will revise the design concept based on client direction, readying in the package for inclusion in the final design report. • 1.9 — Final design We will present to the City the final waterfront design concept, providing site plans, elevations, sections and renderings to communicate the proposed design concept, packaged as an officially approvable plan by the City. 1.10 — City Council presentation We will present the waterfront design to the City Council at its meeting in January, using this meeting as an opportunity to launch into the working drawings phase of the project. 1.11 — Coordination of permits We will work with the City and all other agencies and jurisdictions as appropriate to ascertain the project's likely permitting requirements and to incorporate those requirements in project design. We will also obtain permit application forms and complete them to the best of our ability for preliminary agency review prior to beginning work on construction documents. 1.12 — Survey We will conduct design survey for the waterfront area, including Railroad Avenue, the park and green street areas, including utilities and property boundary information. Work will not include setting property corners and monuments. • Task Deliverables o One multi -day, multi -discipline schematic design workshop o One set of conceptual design alternatives for client review prior to the open house 1-5 o Intermediate concept design package responding to public open house comments • o One client review meeting to present and discuss intermediate drawings and affirm client direction o Final concept design package o Two Presentations to City Council o Design survey for the project area o Working cost estimates for preferred design • • M 0 2. Waterfront Phase Two The end result of this portion of the project will be production of bid -ready construction documents for Railroad Avenue, the waterfront esplanade between Lincoln Street and the estuary, the two -acre park at the west end of the waterfront and two green streets perpendicular to the waterfront esplanade. Work tasks and budget for construction drawing production are estimated here based on an initial understanding of the work ahead. These tasks and the project budget should be reviewed when a refined project design is approved, allowing the work under this task to be more closely aligned with the proposed design. Landscape and civil design services are an estimate only and are based on the assumption that work will occur within the public right of way and not in or over water. The costs for these tasks are based on the complete redevelopment of Railroad Avenue and 100 foot transition into Oak and Laurel streets. Cost estimates and task descriptions could vary widely if other consultants are needed for hydrology, marine biology or habitat enhancement. These estimates do not include an archaeological consultant, but the project may require archaeological investigation and monitoring during construction phases. 2.1 — Preliminary civil design We will translate the design concept to 30% completion design level, including preliminary planning and layout, grading, paving, preliminary stormwater, utility planning, geotechnical services and coordination of plans from other disciplines. Estimates for the geotechnical scope and fee are for a basic geotechnical investigation and drilling, including one day with the design team. This task does not include managing issues related to contaminated soils encountered during the geotechnical investigation. 2.2 — Preliminary landscape and urban design We will translate the design concept into a preliminary landscape and urban design, including an irrigation plan, planting plan and lighting plan to a 30% completion level for client review. Work in this task may involve supplemental lighting consultation and preliminary cost estimates. 2.3 — Client meeting We will meet with the client to review 30% civil and landscape designs to ensure consistency with the design concept and municipal standards and codes. 2.4 — Intermediate civil design We will revise civil drawings to reflect client comment, preparing drawings and specifications to a 70% completion level, along with preliminary cost estimates, for client review. 2.5 — Intermediate landscape and urban design We will revise landscape and urban design drawings to reflect client comment, preparing drawings and specifications to a 70% completion level for client review. 2.6 — Client meeting We will meet with the client to review 70% civil, landscape and urban designs, cost estimates and draft specifications to ensure consistency with the design concept and municipal standards and codes. 1-7 2.7 — Final design t We will incorporate client comment in to a final design package, including specifications in CSI format for the City's bid process and drainage calculations and plans and temporary erosion control plans with reports as necessary for permitting. 2.8 — Permits We will complete the permit applications as required by responsible agencies, including the City of Port Angeles, Washington State Department of Ecology, the Army Corps of Engineers and others as necessary for the proposed design. As estimated now, we expect to prepare a Shoreline Substantial Development permit for processing through the City with DOE review. The City will take the lead on permit processing. Task Deliverables o One set of 30% civil, landscape and urban design drawings, with preliminary cost estimates, for City review o One set of 70% civil, landscape and urban design drawings, with preliminary cost estimates, for City review o Two client review meetings to present and discuss intermediate drawings and affirm client direction o Recommended construction phasing and project component breakdown o Final design, with bid -ready package and cost estimates • 0 • 3. Vehicular and Pedestrian Wayfinding Y g The wayfinding project will produce a citywide wayfinding program, two entry way monuments, including landscaping and associated construction documents foreach. The project will also result in the fabrication and installation of six prototype wayfinding signs with recommended types andlocations. The wayfinding sign plan and entryway monument designs will provide the Client with directional and entry monuments that make up the urban landscape in public areas of the City of Port Angeles. The boundaries for the project include the areas within the limits of the City of Port Angeles. Work on the entryway monuments and wayfinding sign program will be integrated to maximize efficiency. It is estimated that fifteen percent of the conceptual wayfinding and design effort will be devoted to the entryway monuments in addition to the production of specific entryway monument construction documents. The completed product will provide the Client with a document that details sign and entryway monument design, sign messaging, terminology, and installation locations, materials, size/scale, colors, finishes, copy/text and schedule of sign elements. This information shall be suitable for the Client to solicit proposals from qualified sign fabricators to prepare complete shop drawings, manufacture and install all sign elements. The Client will form a wayfinding steering committee to review and provide feedback on the design. The Client shall also be responsible for providing a venue including all set-ups (tables, chairs, projection screen, easels, flipcharts, etc.), inviting participants, advertising public events, and scheduling stakeholder • interviews for all events listed in the Scope. 3.1 — Project coordination In addition to the specific services detailed below, the Wayfinding Team shall coordinate our work with the Client's representative and the Client's project team, monitor the project schedule as it relates to the scope contained herein, and provide timely invoicing and reporting of project progress. 3.2 — Design intent workshop/team kick off The Wayfinding Team will attend a half day workshop with the Client to coordinate schedule, current marketing plans, develop a shared vision and theme, establish a preliminary project budget and understand the Client's program for coordinating our work with the work of other projects. The result of the workshop will be a defined design vocabulary that will include: thematic attitude, market positioning, wayfinding goals, and target clientele that will guide the future preliminary schematic design phase of the work. 3.3 — Site analysis During the same visit as the Design Intent Workshop, the Wayfinding Team shall conduct an image and wayfinding analysis of the site including comparable municipalities, and work done to date to gather pertinent information such as project character, graphic image development, architectural features, historical elements, traffic circulation, priority destinations and applicable city and state requirements. 3.4 — Project program document . Based on the site analysis and Client input, the Wayfinding Team will prepare a Project Program document that will address: NUO o A review of existing and proposed destinations • o A review of existing and proposed parking and wayfinding methodology o A list of proposed terminology o A list of proposed key sign types o Expectations of ongoing maintenance requirements of sign types o Preliminary budgetary guidelines for the cost of implementing the system o Preliminary sign master circulation plan for motorists, bicyclists and pedestrians o Preliminary sign removal/consolidation plan o Review of construction, durability and materials selection o A list of WSDOT Requirements for state routes o City Review of Project Program Document The City will review each draft of the Project Program Document and provide all review comments in writing to the Wayfinding Team. The Wayfinding Team will meet with the Client to review the comments and agree upon changes to be incorporated into the next part of the work. 3.5 — Sign location and removal plan/coordination The Wayfinding Team will prepare a draft sign location plan which locates each directional sign within the city. The Wayfinding Team will coordinate with the City's engineer to gather location conflicts information that will be needed by the selected sign fabricator/ installer to determine the final location of signs, removal and permit. The Wayfinding Team shall rely on all information supplied by the City as accurate and correct. Additional work required due to inaccurate, incorrect, or incomplete information supplied by the City shall be completed as an Additional Service. 3.6 — Schematic design workshop • The Wayfinding Team shall develop preliminary alternative wayfinding design concepts during a 4 -day workshop in Port Angeles. Based on the theme and design vocabulary developed in the Project Program document, the Wayfinding Team shall prepare schematic sign design documents that will include the following: o Palette of signs with proposed dimensions, materials and finishes, comparable images and illustrations (freehand or electronic) o Preliminary statement of probable costs (based on cursory review from up to two (2) sign fabricators) o Specifically, the Wayfinding Team will prepare schematic design documents for the following wayfinding, graphic and place -making elements: o Vehicular directional signs o Bicycle route signs o Pedestrian directional signs o Pedestrian map - digital artwork for pedestrian maps that will be scaled appropriately to enhance walk -ability within the project area. o City Review / Schematic Design Update Workshop The Wayfinding Team will attend a one (1) day workshop to present the schematic design graphics to the steering committee and public and discuss the progress of the design with the City. At this meeting, the City shall select a final design from among the design options that have been prepared during the preliminary schematic design workshop. The Wayfinding Team will proceed with the Design Intent documents phase of the work, incorporating the City's review comments into plans during the next phase of the work. Additional revisions or concepts requested by the City shall be provided as an Additional Service. • 1-10 . 3.7 — Sign master plan and standard "guide" manual The Wayfinding Team will prepare a document of the selected sign types that will include each sign type, dimensions, materials, colors and graphics. This guide will enable the City to implement the wayfinding system, as needed, for future growth. The manual will be suitable for pricing by sign fabricators who, under contract to the City, are qualified to prepare fabrication/construction documents including all engineering design and calculations, and to fabricate and install signs reflected in the design intent documents. The Wayfinding Team will attend one (1) half-day meeting with the City staff during production of the design intent documents to coordinate our work. 3.8 — City review The City will review each draft of the design intent documents and provide review comments in writing to the Wayfinding. The Wayfinding will meet with the City to review the comments and agree upon the revisions to be incorporated into the final drawings. 3.9 — Final design intent documents The Wayfinding Team will prepare the final design intent documents, incorporating the City's review comments into the final documents. 3.10 — Agency coordination The Wayfinding Team will prepare the necessary documents for WSDOT State and District Office approval and permitting of the Master Sign Schedule in accordance with City requirements. The is Wayfinding Team will attend two (2) half-day meetings with WSDOT staff over the course of the preparation of design intent documents to ensure that our work meets WSDOT guidelines. 3.11 — Entry feature design and construction documents The Wayfinding Team will design and prepare construction documents for two entry monuments at the east and west entrances to the City. Improvements will include the sign structures changes to the existing landscape, irrigation and area lighting. The Wayfinding Team will produce construction documents for these improvements base on the Schematic Design Workshop previously completed for the City. The City will review the 60% Construction Documents internally and provide a set of written comments. All comments received from the internal review and as a result of the bid will be consolidated and provided to the Wayfinding Team in writing. These comments will be incorporated into the 100% Construction Documents. The 100% Construction Documents will be suitable for bidding, construction and permitting. 3.12 — Sign master plan application The Wayfinding Team will prepare the necessary documents for the City to submit the Sign Master Plan for approval in accordance with local zoning ordinances. Task Deliverables o One (1) set of the design intent workshop notes o One (1) 11" x 17" set color copies of the project program document o One (1) 11" x 17" set color copies of the schematic design documents including: 1. wayfinding routing plan • 2. pedestrian map design o One (1) draft and one (1) final copy of the sign master plan and standards manual o One (1) 30" x 42" laminated board of wayfinding sign designs • o One (1) 30" x 42" laminated board of the wayfinding master plan o One (1) 30" x 42" laminated board of pedestrian map design o One (1) set of final design intent drawings and final entryway construction drawings o Issue for Bid (60% Construction Documents) o Issue for Permit and Construction(100% Construction Documents) including statement of probable cost and specifications o One (1) electronic copy of all graphics o Final designs, with bid -ready package and cost estimates • 1-12 • 4. Transportation The transportation scope will result in direct input into the waterfront design and provide the upfront work for the City's 2013 Comprehensive Transportation Plan update. This transportation effort will focus mainly on the City's downtown and waterfront areas, but will also provide the forecasting framework for assessing Citywide transportation facilities. The transportation work will fit into nine main tasks. The first four tasks are scheduled to occur during the fall of 2010, with Tasks 4.5 through 4.9 beginning in early 2011 4.1 Data collection for waterfront/downtown study and comprehensive transportation plan To perform the transportation planning tasks need for the Waterfront/Downtown Study and Comprehensive Transportation Plan update, which will include identifying existing and future transportation operations in the Waterfront/Downtown district and throughout the City, we will need to collect information regarding existing and planned land uses and transportation conditions. We will collect the following data: o Existing land uses — this could include the City's parcel database and GIS layers o Future land uses — this will include any specific information about where future land use would occur on a parcel or district basis based on information to be provided by the City. This City will provide this data in the same format as the existing land use data (e.g. parcel database and GIS layers). o Daily traffic volumes and geometries on up to 30 key roadway segments throughout the City will be coordinated with City staff. These roadway segments will focus on Principal and Minor • Arterials, as classified in the 1996 Transportation Services and Facilities Plan. We will collect counts both before and after Labor Day at up to five roadway facilities selected in conjunction with City staff. PM peak intersection volumes and geometric information at up to 10 key intersection facilities (these counts would be at locations in the Downtown/Waterfront area or where roundabouts have been proposed) o PM peak hour origin and destination (O -D) data for vehicles traveling at up to four locations, such that we can get a sense of how traffic flows are related to internal trips (trips by Port Angeles residents to destinations within Port Angeles, external trips (trips with one end in Port Angeles and the other end outside of the City), and through trips (those trips that pass through, but do not stop in Port Angeles) o The location of bicycle and pedestrian facilities throughout the City (such as sidewalks, bike lanes, and trails). This information could come from the City's Bicycle and Pedestrian maps. o The location of bus routes and stops throughout the City, including any planned improvements from Clallam Transit. o The location of planned transportation improvements, as identified in the City's 1996 Transportation Services and Facilities Plan, the current Transportation Improvement Plan, and other planning documents, including the 2009 AIA study. o Parking supply, occupancy, and turnover in the Downtown area. We will review any data that the City has already collected. We have assumed that we will collaborate with City staff, which will spend a day surveying parking sites throughout the downtown area to collect this information. We recommend carrying out this parking analysis during the months of August or early September to account for the peak season in ferry travel. o Black Ball Ferry ridership data based on information obtained by the City from the ferry operator. This data collection effort, including receipt of land use information from the City, will take place within 60 calendar days of receiving a signed contract. 1-13 4.2 Development of Year 2030 citywide traffic forecasts • We will use the data collected in Task 4.1 to develop year 2030 Citywide Traffic Forecasts. We will develop a small, standalone PM peak hour model (platform to be determined) that can be applied to as a sketch planning tool to analyze the Waterfront/Downtown Study and for the future Comprehensive Plan update, as well as for other future City projects. This model will provide traffic volume forecasts for the 30 roadway segments and 10 intersections where counts are collected. It will estimate how traffic volumes increase with respect to planned land use development and transportation projects over the next 20 years. 4.3 Transportation planning for the waterfront/downtown plan We will provide the transportation planning support for the Waterfront/Downtown Plan. This effort will include: participating in a walking audit with other team members and City staff to identify transportation issues in the Waterfront/Downtown area, reviewing design plans for the Waterfront/Downtown area that are developed by the Consultant Team, and providing input with regards to roadway operations, pedestrian and bicycle travel, ferry terminal operations, and parking accommodation. We will use the travel model developed in Task 4.2 to better understand traffic volumes on roadways in the Waterfront/Downtown area and evaluate transportation improvement concepts. 4.4 Meetings related to waterfront/downtown planning We anticipate that throughout the process, we will need to meet with City staff and stakeholders in the Downtown/Waterfront area to discuss transportation issues such as ferry operations, parking accommodation, roadway operations, and non -motorized transportation facilities planning . Additional meetings or public hearings will be attended, as requested, on a time -and -materials basis. 4.5 Upfront transportation analysis for comprehensive plan update We will use the data collected in Task 4.1 and the travel model developed in Task 4.2 to perform the existing and future year transportation analysis in the Downtown and Waterfront areas. Specifically, we will evaluate: o PM peak hour operations on 30 roadway segments and 10 intersections o Parking needs within the Downtown area o Bicycle and pedestrian facility needs in Downtown and Waterfront areas and key routes connecting the Downtown with other parts of the City o Needs for additional transit facilities in Year 2030 We will use the model developed in Task 4.2 to assess how up to three major roadway infrastructure options (for example, completion of the Downtown Bypass) would influence overall transportation conditions and needs throughout the City. This analysis will identify areas in the City that may not meet the preferred level of service (LOS) threshold in the future under the various circulation alternatives. We believe that this assessment will facilitate the City's decision making processes over which facilities to include in the upcoming Comprehensive Transportation Plan update. We will summarize our findings from this task in a memorandum to the City. 4.6 Development of policies related to Waterfront/Downtown areas 0 • We will review the goals and policies in the City's current Comprehensive Transportation Plan. We will provide recommendations on how the Comprehensive Transportation Plan could be updated in order to provide for a transportation vision that suits the City's needs and is consistent with the Waterfront Plan. We will provide the City with a memorandum summarizing our recommended policy changes. 4.7 Identifying future funding sources for Comprehensive Transportation Plan update We will review regional, state, and federal grant programs to identify potential sources of revenue for the City in pursuing its Comprehensive Transportation Plan update. We will provide City staff with a memo summarizing our findings and recommendations. 4.8 Meetings related to comprehensive transportation plan upfront work We anticipate that throughout the process, we will need to meet with City staff and oversight agencies to discuss issues related to the upfront work for the Comprehensive Transportation Plan. Additional meetings or public hearings will be attended, as requested, on a time -and -materials basis. 4.9 Planning -level cost estimates We will develop a list of recommended transportation infrastructure improvements in the Downtown/Waterfront area. We will provide planning -level cost estimates for these improvements for the City's use in budgeting and project implementation. Task Deliverables . o Traffic forecasts and standalone travel model for use in future city applications o Refinements to Waterfront Plan o Memoradum summarizing upfront work for Comprehensive Transportation Plan update o Memorandum on Comprehensive Plan transportation policies o Memorandum summarizing potential funding sources for Comprehensive Plan update o Planning level cost estimates for recommended downtown transportation infrastructure o Up to four client meetings to review transportation issues • 1-15 5. Public Engagement Public engagement will involve multiple components, each of which will influence the waterfront design and the wayfinding and transportation components of the project. Where feasible, public engagement activities are designed to integrate discussion of all three projects, taking advantage of this project's breadth of scope and collecting public comment on a diverse set of topics. 5.1 — Stakeholder interviews We will conduct orientation interviews over a period of four days with stakeholders as identified by the City, producing a summary report identifying issues, challenges, opportunities and possible solutions as voiced during the interviews. 5.2 — Visitor interviews We will conduct interviews of waterfront users, riding both ferries to engage in conversations with passengers traveling to Port Angeles and conducting brief interviews with passengers as they wait for boats to sail from Port Angeles. 5.3 — Open house We will attend and facilitate a waterfront design open house, hosting various displays and helping participants provide comments on,the proposed designs. is 5.4 — Static displays 0 We will design up to three static displays for exhibiting at various locations in the community, informing the public of the process to create the waterfront design concept, presenting examples of the design work product and inviting public comment and participation. 5.5 — Website We will design and manage a project website, posting information relevant to the waterfront, transportation and wayfinding efforts and soliciting community involvement and comment. The website will include design concepts and sketches, copies of static display posters, reports generated as part of this process and links to other, pertinent websites. Task Deliverables o Stakeholder interviews over four days, with summary report o Visitor questionnaires and summary report o Up to three different static displays, ready to print, for installation in areas as determined by the City o One public open house, with consultant participation and facilitation o Project website, with ability to solicit, display and record public comment in response to posts. • 1-16 0 6. Project Management, Phase One • • Completion of Phase One is targeted for December 31, 2010, requiring expedient completion of all consultant tasks and active project coordination. This task includes efforts to coordinate work product from all consultants, attend meetings with City staff as necessary and ensure work is performed to the City's satisfaction. 6.1 — Project coordination We will actively coordinate work in all three task areas to ensure the project is proceeding on schedule and delivering work product to the City's satisfaction. Our work here will include weekly project team coordination meetings to verify schedule compliance and to provide early warning and ability to respond in case of scheduling difficulty. 6.2 — Client meetings We will maintain frequent communication with the City, attending meetings in person at strategic milestones and via video conference to ensure continuous and effective client contact. 6.3 — Status reporting We will provide monthly written status reports, detailing work performed, as part of our regular billing cycle. 1-17 7. Project management, Phase Two Project management for Phase Two will concentrate on the production of working drawings for the esplanade reconstruction as designed in Phase One. It will also manage preparation of the transportation facilities comprehensive plan. We anticipate that Zenovic & Associates will take a more prominent role in this part of the project as work makes the transition from concept to construction documentation, increasing the level of civil and landscape design and the frequency of direct contact between those disciplines and the City. 7.1 — ]Project coordination We will actively coordinate work in all three task areas to ensure the project is proceeding on schedule and delivering work product to the City's satisfaction. Our work here will include weekly project team coordination meetings to verify schedule compliance and to provide early warning and ability to respond in case of scheduling difficulty. 7.2 — Client meetings We will maintain frequent communication with the City, attending meetings in person at strategic milestones and via video conference to ensure continuous and effective client contact. 7.3 — Status reporting • We will provide monthly written status reports, detailing work performed, as part of our regular billing cycle. 0 ABU • Project Schedule Task/Subtask Estimated Completion Date / Duration 1. Waterfront, Phase One I i Baseline September 24 12 Schematic Design September 27 — October 1 1 3 Client Meeting October 1 14 Design Alternatives October 29 1 5 Open House Preparation October 29 — November 2 1 6 Design Concept November 26 1 7 Client Meeting November 26 1 8 Design Revisions December 15 19 Final Design December 22 1 10 City Council Meeting January 18 1 11 Permits coordination November 15 — January 14 1 12 Survey September 23 — September 27 2. Waterfront, Phase 2 2 2 Preliminary civil design January 17 — January 31 2 3 Preliminary landscape/urban design January 17 — January 31 2 4 Client meeting February 1 2 5 Intermediate civil design February 1 — February 28 2 6 Intermediate landscape/urban design February 1 — February 28 2 7 Client meeting March 1 2 8 Final design March I — March 22 2 9 Permits January 31 — April 15 3. Wayfinding 3 1 Project coordination August 4 —January 18 32 Design intent workshop September 14 33 Site analysis September 13 - 16 34 Project program document September 23 35 Sign location/removal plan September 30 36 Schematic design workshop September 27 — October 1 37 Sign master plan October 22 38 City review October 22 — November 5 39 Final design intent documents October 22 — November 19 3 10 Agency coordination October I —November 19 3 11 Entry feature design/Construction Drawings November 19 — December 3 3 12 Sign master plan application December 31 0 1-19 4. Transportation 41 Data collection 42 2030 traffic forecasts 43 Waterfront transportation planning 44 Waterfront transportation meetings 45 Transportation analysis citywide 46 Transportation element 47 SEPA documentation 48 SEPA/comp plan meetings 49 Planning -level cost estimates 5. Public Engagement 5 1 Stakeholder interviews 5 2 Visitor interviews 5 3 Open house 5 4 Static displays 5 5 Website 6. Project Management, Phase 1 August 5 — September 24 August 30 — December 17 September 6 — October 16 September 27 — September 29 September 29 — February 25 January 10 —July 29 January 24 — July 29 January -10 — July 29 July 29 September 13 — September 16 August 15 — August 17 September 28 — September 30 November 2 September 20 —January 18 August 23 —July 8 6 1 Project coordination Continuous 6 2 Client meetings Monthly 6 3 Status reporting Monthly 7. Project Management, Phase 2 6 1 Project coordination Continuous 62 Client meetings Monthly 6 3 Status reporting Monthly 1-20 • r� 1 A 0 T� J� '0 JI tp DIL 417,�,, Downtown Revitalization Plans: Role & Adaptation Revitalization plans serve multiple purposes, but must accomplish three basic goals to be fully successful This understanding motivates everything we do in preparing these documents, from shaping the way in which we approach the public, to drafting the documents, to working with agency staff, to making presentations to boards and commissions. • Goal One —.Achieve compliance iveth statutory requirements, induding all elements identified by lain • Goal Two — Capture and express the community's vision, and translate it accurate- into public policy and achievable implementation actions ■ Goal Three — Create a clear and consistent strategy that is easily interpreted by staff, public officials, and the commune y More often than not, meeting these goals requires innovation — both in process and in product Though our general planning methodology may remain relatively consistent from one project to the nett, each assignment demands thoughtful tailoring to ensure the community is well -served. What's immediately apparent about Port Angeles' unique needs? For one, ., Vfstrmwoi ,wneAr omni Material "branding" developed for„community outreach should also be incorporated into the plan documents, helping the community remember and relate to the process that created them the community has approached issues related to downtown revitalization from multiple directions, consulting the community and taking advantage of focused study from the AIA to help set the stage for effective strategy. Second, the City has SCI often uses 3-D modeling and animation tools to illustrate planning concepts, land use options and implications — here for Pullman, WA, Stromness, Scotland, and Spokane County, WA identified three essential prerequisites for successful downtown revitalization, combining a rethought transportation system plan, a wayfinding system and a waterfront development strategy to ensure that any new downtown investment is supported by mobility patterns and tourism. Third, this process will require careful consideration of community policy direction in light of detailed regulatory, technical and economic information. Finally, this project's success will be measured by the actual completion of projects identified, resulting in new, entry monuments and bid - ready packages for the highest -priority projects We'll expect to reference existing policy and recent design study, ensuring our proposals reinforce the community fabric, provide a balance of land uses, and support economic development in a fiscally responsible and sustainable manner. We'll focus on generating work that's supported by the community and is achievable by the agencies and individuals responsible for the plan's implementation. We see this process as a complex undertaking, requiring careful integration of transportation and urban design disciplines. With existing documents and recent policy - Studio Cascade City of Port Angeles — Planning Services Proposal 0-1— _ I _ .. Y• mmo ng a —i- ont (-�� BEva®mArncAuasF4•i WATER—W 81111 IL � a WAtEBEPONr PBOMFNAtlE � } + e SipEEr5CA1'E BAmovEmExrs .( I +L—AAUDAO AVENUE Ho0E5/­l5sW0 ,.y +.� eABIt ARFASlOeEIBeeEVi11>1ED' - *urcBAa[oEEanrrcw.uNu. An important challenge will be finding appropriate ways to link the new transportation policies to effective design approaches, wayhndmg strategies and treatment of the public realm - with all working together to enliven the town center level work as a foundation, paired with public input and day-to-day knowledge from staff about what's needed most, we're excited about producing these documents in a way that helps Port Angeles thrive. Our team features the expertise and depth of some of the most well-regarded technical planning and design firms in the nation, coupled with and led by SCI's small - firm, regional, and highly personalized services. Staff Involvement We understand that City staff will be intimately involved in this process We see City staff both as a full team member and as the client, and we will rely on City departments to participate actively in a variety of ways Our proposal has identified several work items for which we will turn to staff, and the City has identified in its RFP its expectation that staff will take a leadership role in project coordination and active consultant management. We will work with staff to identify and clarify roles for all team members on this project as part of initial scoping, providing for an efficient and effective framework for running this process and delivering material the community desires. Public Participation and Input Our goals on public participation and input are for the public to shape public policy, endorse its implementation, and support elected officials in leading the community forward. This is crucial for fulfilling the three planning goals mentioned earlier, and it requires a progressive and transparent public involvement strategy SCI has won multiple awards for its public outreach efforts, mostly because of our ability to elicit meaningful guidance from the community, and clearly link what we hear to specific policy choices. We have found success in extremely contentious political environments as well as harmonious ones, developing a working relationship with communities by focusing on problem solving, future vision, partnership, trust, and accountability While much of this project is technical in nature, it will be important to remember that a public process will be required to vet policy shifts and review the specific ideas the design effort generates The plans must be relevant and accurate statements of community expectations and desires. They represent a collective Studio Cascade's extensive work with small to mid-sized communities has taught us the value of relationships, and of the need for real-world, actionable plans - scaled and configured for available resources and for the citizens that carry them forward Table 1 - Generalized project schedule Task • 0 Project initiation and management ■ ■ ■ ■ ■ 0 0 0 0 0 M M M 1. Downtown waterfront development ■ ■ ■ ■ M 0 2 Wayfinding sign system and entryway monument design ■ ■ ■ ■ ■ 0 3. Comprehensive transportation plan •I'�oporedwidnre rnG/rrll��ruurmrrhnrngrurraalpru/rr,'phu�r ■ ■ ■ ■ ■ ■ ■ ■ Y ■ ■ ■ ■ picture of what should be, shaping a transportation, wayfinding and waterfront environment that honors the community's vision During this process, staff and City officials may be asked to take the products of the process into the community, allowing residents to speak to the process informally and casually — especially valuable for folks unable or unwilling to attend workshops or other participation events We expect the engagement process to include information booths, interactive exercises, and displays to illustrate how the community's voice is influencing the Waterfront and Transportation Improvement Plan's creation. And we expect to develop an interactive project website to help get the message out to the community and to invite community discussion on what the transportation, wayfinding and waterfront plans propose. Table 2 — Data requested of the City -1ata/Document Needed GIS lavers ■ Current comprehensive plan a Zoning and subdivision ordinances w/staff comments ■ Stakeholder and Cite officials tuts ■ Staff directory ■ Applicable transportation plan ■ Shoreline Management Program ■ Orientation Interview schedule ■ E%istmg planning work program (policy oriented) ■ Table 1 presents a generalized project schedule, and Table 2 indicates the information we'll need to get started. We'll plan on finalizing the project schedule as our first item of work, crafting a public engagement process and identifying milestone deliverable dates. The City has a schedule to meet, and we'll do our best to make it happen. We will attempt to make the December 31 deadline established by the City and communicated in the RFP for the waterfront plan and wayfinding system plan Thanks for your time. We're looking forward to working for the City of Port Angeles and its citizens! Studio Cascade Community Planning & Design SCI and its team members bring local innovation backed by nationally - recognized planning, design, transportation, and wayfinding experience • r� NGELES City Council Memo Date: August 3, 2010 To: City Council From: Glenn A. Cutler, P.E., Director of Public Works and Utilities Subject: Electric Utility 2010 Resource Plan Summary: The City's electric utility must comply with a Washington State mandate to update its 2008 Resource Plan. A component of the enabling legislation is that consumer participation in the plan's development is encouraged. Further, the governing body of a consumer -owned utility must approve the 2010 plan, and any future plans, after it has provided public notice and hearing. Recommendation: Following a presentation, proceed with a public hearing on the proposed Resource Plan. Continue the public hearing to August 17, 2010. Background/Analysis: The electric utility is required by RCW 19.280.030 to update its Resource Plan (Plan) that must be submitted to the Washington Department of Community, Trade and Economic Development (CTED) by September 1, 2010. The principal desired outcome is to ensure that electric utilities have resources adequate 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 for 2015 and 2020 time periods. The state -required Plan must be updated every two years and will 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 prepared the Plan using typical growth rates and the City's current and anticipated future resource mix. Following a staff presentation, it is recommended that the City Council open the public hearing, invite public input on the proposed Plan, and continue the public hearing to the August 17, 2010 Council meeting. On August 10, 2010, staff will seek the Utility Advisory Committee's recommendation to City • Council to approve the proposed Plan. NACCOUNCILTINALTlectric Utility 2010 Resource Plan doe K _ 1 VGELES DATE: August 3, 2010 TO: CITY COUNCIL MEMBERS FROM: NATHAN A. WEST, DIRECTOR COMMUNITY & ECONOMIC DEVELOPMENT SUBJECT: ADOPTION OF INTERNATIONAL BUILDING CODES - 2009 Exception for Decks Under 30" in Height Summary: The State of Washington Building Code Council mandated adoption of updated building codes for the State by July, 2010. Action: Council should conduct a first reading of the attached ordinance and continue the matter to the August 17, 2010 regular meeting. Background /Analysis: The State of Washington Building Code Council mandated adoption of the 2009 International Building Codes by July 1, 2010. The updated building codes are to be followed for all construction within the State after July 1, 2010 and include revision to the International Building, Mechanical, Fire, International Maintenance, and Residential Codes, the Uniform Plumbing Code, and State Ventilation and Indoor Air Quality Code. Unless locally amended, or unless the jurisdiction operates under its own Code, such as the City of Seattle, each jurisdiction within the State must enforce the Codes as written. RCW 19.27.060 provides that jurisdictions may amend the International Codes as long as modifications pertain only to administration and departmental operations, i.e., what work requires permits, fee schedules, permit expirations, etc., and do not result in less than the minimum performance standards. Amendments not adopted at the State level need to go through the public hearing process at the local level. The important point is that the proposed amendment does not exempt decks from being constructed to Code, it only eliminates the permit process. Decks must still be constructed to Code. Staff worked cooperatively with other jurisdictions and building professionals to identify major issues and points of concern with adoption of the new Codes in preparation for the required conversion. Main items of concern revealed in these group meetings were energy and fire sprinkler requirements, decks attached to residential structures, and the size of exempt structures. The Energy Code adoption has been delayed due to challenges to the proposed regulations. Indoor air quality requirements are attached to the International Mechanical Code until an independent energy code is adopted. Section 18.08.110 of the Port Angeles Municipal Code already defines K-2 • ICC Amendments — 2009 Page 2 how residential fire sprinklers in single family residences are addressed in the City. The City has • established, as is permitted in the General Administration Section (Chapter 1) of the IRC to locally limit the size of structures exempt from a building permit to 120 sq.ft. The current and final amendment being proposed is, as has historically been the case, to exempt decks no more than 30 " from finished grade from permitting requirements. This doesn't exempt decks from construction standards, it just eliminates the minor construction from the permitting process. Decks that exceed 30"from final grade will continue to require a building permit. This action enables a slight streamlining of the construction process for minor construction. The attached draft ordinance is supported by the building community and staff. Staff will be available for questions. Attachment: Draft Ordinance • 0 "I Draft #4, 7/29/10, di, Legal Dept ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, amending Chapter 14.03 of the Port Angeles Municipal Code relating to the Building Code. THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN as follows: Section 1. Ordinance 2552, as amended, and the Port Angeles Municipal Code are hereby amended by amending PAMC 14.03.020 to read as follows: 14.03.020 Amendments to International Codes. Pursuant to RCW 19.27.040, RCW 19.27.060(3) and (4), and PAMC 14.04.020, the following amendments to the International Building Code, International Residential Code, and Uniform Sign Code are adopted: A. International Building Codes, Chapter 5, Table 503 is amended by adding the following footnote: • (9) Type V -B construction prohibited in CBD - Central Business District. B. International Building Code, Section 903.2.10 is amended by adding the following: 903.2.10.4 Automatic Sprinklers shall be provided: (a) In all buildings where the floor area exceeds 6,250 square feet on all floors; (b) In any adult family home, boarding home, or group care facility that is licensed by the Washington State Department of Social and Health Services for more than five persons; However, the height and area increases specified in Section 504 and 506 (for sprinklers) shall be permitted. For the purpose of the subsection, portions of buildings separated from the rest of the building, in accordance with Section 705, with openings allowed by the International Building Code protected by the installation of approved magnetic hold -open devices which are activated by smoke detection devices installed on both sides of said openings, may be considered as separate buildings. C. International Residential Code, Section R 105.2.1, is amended by restricting work exempt from a permit to one story detached accessory structures provided that the floor area does not exceed 120 square feet. D. International Residential Code is amended to provide as follows: No building permit is required for construction of decks less than 30" from finished Made, unless such deck is part of a larger construction prof ect for which a building permit is required, but this provisions does not exempt deck construction from the minimum performance standards and objectives contained in the state building code. • -I- K-4 • Draft #4, 7/29/10, dl, Legal Dept DE. Uniform Sign Code, Chapter 3, Section 301, is amended by adding the following: Provided that presently existing signs not in conformity with this code, as amended, may be maintained in their present condition unless hazardous, but may not be altered or reconstructed unless in conformity with this code. BF. Uniform Sign Code, Chapter 3, Section 303: Delete #3, signs less than 6 feet above grade. EG. Uniform Sign Code, Chapter 4, delete Table 4-B. In lieu thereof, Chapter 32, Section 3205.1 of the Uniform Building Code, 1997 Edition, shall apply to projection of signs. Section 2. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 3 - Severability. If any provisions of this Ordinance or its applications to any person or circumstances is held to be invalid, the remainder of the Ordinance or application of • the provisions of the Ordinance to other persons or circumstances is not affected. Section 4 - Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect five days after its publication by summary. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the day of August, 2010. ATTEST: MAYOR APPROVED AS TO FORM: Janessa Hurd, City Clerk William E. Bloor, City Attorney G \LEGAL\a ORDINANCES&RESOLUTIONS\ORDINANCES 2010\16 - Int'I PUBLISHED: August 2010 Bldg Code Decks 071310 wpd By Summary -2- K - 5 • • • GELES DATE: August 3, 2010 TO: CITY COUNCIL FROM: NATHAN A.WEST DIRECTOR COMMUNITY AND ECONOMIC DEVELOPMENT SUBJECT: HURRICANE RIDGE ROAD FUNDING REQUEST Summary: The City has an opportunity to leverage economic development funds to ensure that Hurricane Ridge Road remains open year around. Recommendation: 1.) Approve a matching contribution of $20,000 to keep Hurricane Ridge Road open during the 2010-2011 winter season and 2.) Authorize the City Manager to execute a supporting contract with National Park Service or other appropriate entity specified by the Park Service. Background / Analysis: In March of this year a City delegation met with representatives of the Department of Interior and Congressman Norm Dicks' Office in Washington D.C. to discuss concerns related to the lack of regularity and predictability regarding Hurricane Ridge Road openings. Following the visit, the City was advised that it would cost $325,000 to keep the road open during winter months. The Department of Interior has agreed to provide $250,000 a year for the next two to three years on a trial basis to cover the required costs. The local community has been asked to provide the remaining $75,000. A local fund raising campaign has begun to raise the $75,000 required for the first winter season. On July 27, 2010, the Clallam County Commissioners passed a resolution to contribute $20,000 from the County Hotel/Motel Tax Fund conditional on a corresponding match of $20,000 from the City of Port Angeles. Staff recommends supporting this match. The two contributions would require the community to come up with the remaining $35,000. In conjunction with the Economic Development Fund Policy, the expenditure of these matching funds will result in the creation of jobs, the diversification of the local economy and effectively leverages City dollars. The City will require that expenditure of these funds be contractually tied to the performance of the undertaking. A list of frequently asked questions has been attached as well as the County Commissioner's resolution. Staff is available to answer any additional questions. L-1 HURRICANE RIDGE ROAD 2010 FUND RAISING CAMPAIGN • Frequently Asked Questions 1. Why is there a local effort underway to increase winter access to Hurricane Ridge Road? In 2006, the current schedule of opening this road from Friday through Sunday was adopted by the National Park Service due to budgetary limitations and in an effort to create a predictable schedule that met public use levels and desires. Members of the local community have recently expressed an interest in expanding the use season to include daily access to Hurricane Ridge throughout the winter. 2. What is the total funding necessary to keep the Road open during the winter months? The National Park Service has determined that funding of $325,000 is needed in order to keep the Road open for daily access this winter. These costs cover the hiring of a dedicated maintenance crew, park rangers to provide emergency services and fuel and equipment. 3. What local funds are needed in order to provide the necessary funding? Earlier this year a delegation of Port Angeles city officials met with representatives from the Department of Interior and Congressman Norm Dicks' Office. As a result of this meeting, the Department of Interior agreed to provide an additional $250,000 a year for the next two to three years on a trial basis to cover a portion of the costs to provide daily access to Hurricane Ridge Road during the winter months. The Department indicated that the remaining funding of $75,000 a year would have to be provided by the local community. 4. How many years is the local funding commitment required? The primary focus of the local fund raising efforts is to secure funding for the 2010-11 winter season. Congressman Dicks has made an appropriation request that would provide full funding to keep the road opened through the winter season in future years. If this funding is approved next year, there will be no need to raise additional local funds. However, if the request is not approved, then• the local funding will be needed for a three year period. 5. Why was a three-year period identified for opening the road? The Department of Interior would like to evaluate the winter demand for use of Hurricane Ridge Road during a three-year period. If there is sufficient demand, then they will consider long-term funding to keep the Road opened. If the demand is not sufficient, then they will likely discontinue funding. 6. What happens if the community is not able to raise the $75,000 local funding required? If the $75,000 is not raised this year, then plans call for continued fund raising with a goal to open the Road for daily winter access next year. If this occurs, all individuals and organizations that provided funding will be given the choice of getting a refund or allowing the funds to be used for next year's efforts. 7. How can individuals or groups contribute to the local fund raising campaign? There are several easy options for making donations to help with this campaign. First of all, all checks should be written to the Washington's National Park Fund with the notation "Olympic NP -Hurricane Ridge" in order to insure that all donations are used for this campaign. Chase Bank has an account established locally, #000003676627323, and payments can be made at the Bank located at 101 W Front Street. Checks can also be sent to the Port Angeles Chamber of Commerce at 121 East Railroad Avenue or to Washington's National Park Fund at P.O. Box 64626, University Place, WA 98464. Donations can also be made on-line by credit card at http://wnpf.org by clicking the "Donate Now" button and select the Olympic National Park with a note that the donation is to be used for Hurricane Ridge Road. All donations will be used directly for the $75,000 required local funding commitment with no administrative charges deducted for the donation. 8. Are donations tax deductible? In order for contributions to be considered to be tax deductible they should be made payable to the Washington's National Park Fund which is a 501(c)(3) organization. • L-2 0 • • RESOLUTION &61 , 2010 AUTHORIZING EXPENDITURE FROM THE HOTEL/MOTEL TAX FUND AS A COMMUNITY MATCH TO KEEP HURRICANE RIDGE ROAD OPEN 7 -DAYS A WEEK IN THE WINTER THE BOARD OF CLALLAM COUNTY COMMISSIONERS finds as follows: 1. The County collects Hotel/Motel Tax pursuant to RCW 67.28. 2. State statute requires an advisory committee to review all proposed expenditures from the Hotel/Motel Tax Fund and make recommendations to the Board of Commissioners. 3. The Lodging Tax Advisory Committee met on July 26 to consider a proposal to keep Hurricane Ridge Road open 7 -days a week in the winter. 4. The Committee voted unanimously to recommend that the Board of Commissioners use $20,000 from the fund, with a corresponding match from the City of Port Angeles, to keep Hurricane Ridge Road open daily throughout the winter. NOW, THEREFORE, BE IT RESOLVED by the Board of Clallam County Commissioners, in consideration of the above findings of fact: 1. Concur in the recommendation of the Lodging Tax Advisory Committee. 2. Authorize a $20,000 expenditure from the Hotel/Motel Tax Fund for the use specified above. PASSED AND ADOPTED this twenty-seventh day of July 2010 ATTEST: Trish Holden, CMC, Clerk of the Board c: City of Port Angeles V. Doherty, Jr., C. Chapman ISSIONERS J:\public\Resolutions\2010\authonzing expenditure for hurricane ridge road.docx L _ 3 oil Z'1Ito y*,j '/t, y,_ •r a}•, �wy�{sr_.+_y_.yy_r_y.. 112-1— --')l , •!i/'�ki���y:'�Ir+,H�iy ��SY'N`�7'+.lJ�•���i�•''Fi�,i+�l1: bi!Y �1(v!4r��I June 3 0, 2010 TO: Nathan West FR.,, Linda Rotmark RE: Quarter 2, 2010 Report Exhibit A, Contract Deliverables La.: Describe the results of the EDC's efforts to support City and County -wide economic development strategies. In response to the primary economic development strategies that include business retention, development/attraction and expansion, the following activities occurred during the fourth quarter of 2009. Business Retention: • Offered an export finance team for Chamber of Commerce program. At least 80 members of PA Chamber attended. • Working with a company in Sequim who wants to partner with AM in the manufacturing of the "honeycomb" product. Business Development o Participating in transition of CBI including back office activities since November 11, 2009. i o Designated Chair of start up Finance Development Authority. Second quarter activities include basic operations, development of pro forma documents, securing Peninsula College intern to assist in business plan development. Identification of second micro loan fund to possible acquire. o Also, in discussion with Department of Commerce Microloan Funds with the possibility of the $1.6 million loan fund housed within the FDA. s • Port Angeles: 14 • Sequim:4 • Forks/West End: 2 o April: 6 appointments o May: S appointments o June: 9 appointments • Existing businesses: 8 • Automotive services: 1 • Social services: 2 • Food services: 3 • Prof services: 3 Training/Education: I • Prof services (online): 1 • Retail:6 • ECONomic DEveLoPMENT COUNCIL A PRIVATE NON-AROFff CORAOR noN woRiCING FoR BUSfNESSES tN CALLAIM COUNTY 905 W. 9a', Suites 137-139 + PO Box 1085 + Port Angeles, WA 98362 M-1 �7 y�.�(•y�l..ys•1.. C ...+.�..�. y. �y �.,{.,.r .- - }.D-0--Cp�n yr �i%t�Tii,tXrJ�. ,��,L°, aty gra noX'Y,lk W„�tndopnue Sti �y�rill}. • Construction services: 2 • • Child care: 1 Business Recruitment o Responded, in partnership with the Port of Port Angeles, to a solicitation from theState of Washington's Department of Commerce's business development team. The site selector decided to table decision o Working in partnership with Port of Port Angeles in their business recruitment/marketing program development. Additional activities that may positively affect the economic climate in and around Port Angeles: • Access to Healthcare Committee Member (eastern county) • Peninsula Development District Council Treasurer (regional) o Regional, mostly infrastructure, projects including City of Port Angeles alternative traffic route proposal • North Olympic Peninsula Resource Conservation and Development Council Treasurer (regional) o Natural Resources Economic Development Focus • Olympic Workforce Development Council Executive Board (regional) o Youth employment project and working on committee for grant supporting green jobs in district. • North Olympic Peninsula Skills Center Administrative Council (county wide) • o Represents all five school districts and Peninsula College • Workforce Training Advisory Committee (county wide) chair 2010/11 school year. • PA Forward Committee Member in good standing • Innovation Partnership Zone administrator (regional) 1. b. $12 million Interfor Beaver mill 1. c. New business/people joined as members New members for 2nd Quarter 2010: Morningside (Holly Stone -Cabe) Members who have renewed their membership during the second quarter: Sherwood Assisted Living, Baker; Overby and Moore; Sara Lee O'Connor; Brando Blore; PA School District, Olympic Game Farm; Olympic Natural Resource Center; Allan Bentley; PA Auto Dealers Assoc; John Ralston (Ralston and Ralston); Clallam Transit, Merrill & Ring, Qwest; United Way of Clallam County; Jamestown S'Klallam Tribe; Green Crow; Hermann Bros Logging, Nippon; Methner Insurance; D.A. Davidson; Inside Out Solutions, Angeles Electric; Jim's Pharmacy, Sound Community Bank; Battelle Marine Sciences Laboratory; Bill Spe77y. a 1. e. Meet regularly with City Manager and Economic Development Director regarding specific projects significantly in developing the Economic Summit project. EcoNGIMIC DEVELOPMENT COUNCIL • A PWATE NON-PROFIT CORPORATION wowNG FOR BuswEms iN aAUAM coUNTY .905 W. 9"', Suites 137.139 ♦ PO Box 1085 f Port Angeles, WA 98362 M-2 Vit- - �d'-•, +,,, ?I��;ti�1�'xf�:�ix�''.>��Ya��Y,l�`�i�•R��.�1`ict�x:� ��:�ra�*�� • 2. Included in packet is the quarterly financial report. We have a Board of Directors membership committee whose goal is to increase membership. • ECONomic DIw'N'l=i.opm ENT COUNCIL A PR►vATE BION- pwr coRPORA w WORKING FOR BUSINESSES IN aAuAm coutm 905 W. 91', Suites 137-139 ♦ PQ Box 1085 * Port Angeles, WA 98362 M-3 Code Compliance Quarterly Report 2010 April -June TYPE OF VIOLATION NEW VIOLATIONS RESOLVED UNRESOLVED SIGN CODE 27 27 0 OVERGROWN VEGETATION 29 23 6 JUNK CARS 9 6 3 TRASH AND DEBRIS 16 12 4 ZONING/LAND USE 16 14 2 STORMWATER 2 2 0 LAND USE/PUBLIC WORKS 4 2 2 MISCELLANEOUS 12 12 ©, t GRAFFITI 3 2 1 ENVIRONMENTAL 6 6 0 TOTALS 124 106 18 Zw C • • • • SORT DATE: August 3, 2010 TO: CITY COUNCIL GELES FROM: TERRY K. GALLAGHER, CHIEF OF POLICE SUBJECT: POLICE DEPARTMENT 2010 MID -YEAR REPORT The Police Department has produced a mid -year report and that report has been posted for your review on the City's website at www.cityofpa.us/policeAnnualRpt.htm. As usual the report serves to highlight some of the accomplishments of the men and women of the Department during the January — June 2010 time period. What is not usual is that this is a mid -year report. Normally, the Department produces quarterly reports. However, the recent upgrade of our Records Management System and Computer Aided Dispatch System produced some unanticipated challenges that we are currently on track to resolve. Please read Sgt. Schilke's Records Division report on page 18 for a more complete explanation. The letter from Becca Korby, the executive director of Healthy Families of Clallam County, is one that we take special pride in. It can be found on page 14. Page 15 has a series of photos that highlight one aspect of our K-9 training. If you are familiar with dogs then you might have some idea of how difficult it is to develop the trust necessary for a dog to stay on an unstable platform — in this case, a ballistic shield. Corporal Kevin Miller and Officer Alan Brusseau, PAPD K-9 officers, do an outstanding job. And, finally, the Chief's Message, addresses the recently released crime data report for the State of Washington as produced by the Washington Association of Sheriffs & Police Chiefs (WASPC). I believe the report speaks well of the Olympic Peninsula as a great place to live or visit — and a particularly good place to pursue a career in public safety. We welcome your comments on our report and on our performance as a professional law enforcement organization. M-5 Table of Contents Administration Officers of the Year PenCom Traffic Infractions and Collisions Detective OPNET Training Achievement Downtown Resource School Resource Patrol Support Services K9 can Statistics Crime Statistics Records Bruce Knight Looking Back Volunteers Organizational Chart Port Angeles Police Department 2010 Midyear Report Midyear Report Chief's Message I-3 4 5 5 6-7 8 9 10 11 12-13 14 15 16 16-17 18 19 20 21 Personnel Photos 22-24 Terry Gallagher, Chief of Police On May 28, 2010 the Washington Association of Sheriffs and Police Chiefs (WASPC) released the annual crime data report for the State of Washington. The report provides us an opportunity to compare local crime data for the years 2008 and 2009, but it is also an opportunity to compare our community to others around the State. In reviewing the preliminary report I believe it's fair to conclude that Port Angeles is a pretty darn good place to live. A quick method of comparison, when reviewing the report, is the crimes per 1,000 of population number. In 2008 the Washington State rate per 1,000 (RPT) was 40.7; in 2009 it is 39.7. That slight decrease is also found in the numbers specific to our community. Port Angeles, population 19,260, had a rate per 1,000 population of 52.1 in 2008, which decreased in 2009 to 46.2. To interpret those numbers it is helpful to look at other communities that are familiar to most of us, and that in some cases have comparable populations. Moses Lake has a reported population of 18,930 and a reported RPT of 84.2. Kelso, population 11,840, reports 79.8. Closer to home, Aberdeen reports a population of 16,440 with a RPT of 65.9. Shelton, on the other hand, has a population of 8,965 and a RPT of 101.0. Sequim, population 5,715 reports their RPT as 48.3. Port Townsend, population 8,895, reports 38.4. To put this in perspective it might be helpful to note that Port Townsend reported 44.8 crimes per 1,000 population in 2008. This means that in 2009 Port Angeles was just about as safe as Port Townsend in 2008, or perhaps a little safer than Sequim (in 2008) when the Sequim Police Department reported 47.4 crimes per 1,000. My guess is that most of us feel quite safe when spending time in these adjoining communities. The reader might at first find it disturbing to note an almost 20% increase in violent crime is reported in Port Angeles, then be less concerned when that increase is given a number — 13 more crimes. The point is that perspective is important when evaluating the data contained in the report. And it is just as important to apply common sense based on personal experience. Do you feel safe in our community? Are you afraid to shop in Sequim? I suspect the majority of our citizens do feel safe and have no qualms about shopping here or elsewhere on the Peninsula. Crime in Port Angeles declined 10.8% between 2008 and 2009; the RPT declined 11.2%. The statewide decline was less, but still it was a decline. Any decline in the numbers is a good thing unless you happen to be a crime victim — and then the numbers don't matter. Only you, the victim, can really know what you just went through. (Continued on page 2) • 0 PAGE 2 2010 MIDYEAR REPORT MIDYEAR REPORT (Continued from page 1) In this Police Department we understand that the numbers do matter. But, more importantly, we recognize our obligation to remember that each number can reflect a very personal tragedy — and that healing will only begin for the crime victim when the responding officer steps forward, holds out a hand, and makes a promise to help. In 2009 Port Angeles saw a drop in crime and, as Police Chief, I like to think that we played a part in that decline. But more than that, in doing our job professionally and with compassion, I like to think that we sometimes made a positive difference in a victim's life when perhaps no one else could. And it is a shame that no report can capture that particular statistic. A sometimes -overlooked part of the crime prevention efforts of the police department is the work of our twelve — and only twelve - volunteers. Many departments field larger volunteer Deputy Chief's Deputy Chief Brian Smith Since the mid-1990s law enforce- •ment trainers, academia and the media have paid increasing atten- tion to both real and perceived ethi- contingents. Ours is a small group, but the amount of work they do and the contributions they make to the safety of our community is phenomenal. On June 2, 2010 Mayor Dan DiGuilio and I attended the regular meeting of the police volunteer group and recognized some rather spectacular individual performances in 2009. Charles DeVoney was recognized for 488 hours of volunteer time in 2009, but incredibly, also for surpassing the 5,000 hours mark in total time donated to the police department since he joined the volunteers in June of 1998. If the movie Mr. Incredible isn't about Charles, it should be. Russ Fish, our volunteer administrative assistant, was recognized for his contribution of 1,003 total hours in 2009. As near as we can tell, no one has ever gone over the thousand -hour mark in one year. That accomplishment means Russ is just about the equivalent of a half-time employee — and that, by any measure, is quite an accomplishment. Some other totals: James Walsh — 715 hours, Betty Banick — 634.5 hours, Allen Banick — 611, Marilyn Walsh — 567, Gary Marler — 246, Robert Agee — 209, Kristyn Pendergrass — 129, and Glen McFall — 116 hours. Total contributions by all our volunteers in 2009 was 5,067 hours. Most impressive is since 1998 when the program was inaugurated, 40,351 service hours have been donated to the city. Finally, we have partnered with our local McDonald's Restaurant and will be rewarding good behavior that we observe among young people in the community with a Safe Rider Citation. Positive actions that often go unrecognized and unrewarded — wearing a bicycle helmet, for example - will now earn a young person a certificate good for a vanilla ice cream cone at McDonald's. Crime prevention isn't just about catching bad guys. Part of the formula for success is recognizing good behavior. And that holds true whether the behavior is observed in a young person or a police volunteer. VP Message- Ethical Dilemmas and Core Values cal challenges facing American law enforcement. It is expected that on any given day, anywhere in the United States, events involving the police and any of one or a combina- tion of the "Feasance Broth- ers" (Nonfeasance, Misfeasance, and Malfeasance) will capture the public's attention. Lack of a com- petent response by officers, making a mistake, and purposeful actions that are clearly wrong are all things viewed by our stakeholders as is- sues involving police ethics. In our thinking and talking about police ethics we tend to focus on the known wrong thing done on purpose and are often surprised to find the media and the public often view mistakes and incompetence in the same vein as purposeful bad acts. Ethics training (or "ethical behav- ior") has rightfully become a staple of modern basic law enforcement academies and is featured in much of the continuing education train- ing. The conversation has evolved from police agencies identifying to officers the specific acts or omis- sions that are deemed to be wrong (and the consequences for willful bad acts) toward an appreciation of a higher sense of core values and an expectation that officers do the right thing for the right reasons. MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 3 1 (Continued from page 2) Not doing something solely because of a fear of consequences is now con- sidered to be a motivation below the modern standard. We expect our officers and ourselves to do the right thing because we understand it and believe it to be right. Where this appreciation of ethical behavior and core values in our po- lice officers begins is in the hiring and selection process. We vet our candidates carefully. We are look- ing for the characteristics and be- haviors of good human beings who will easily integrate themselves into an American law enforcement pro- fession and culture that has high moral and etlucal functioning as one of its key metrics for success. We expect our officers to have their key values in place long before we hire them. Our training and em- ployee development focuses on us as an organization and as a profession nurturing "and mentoring our good people (a process our friend Dr. Kevin Gilmartin calls "keeping good people good"). We are successful when we are continually integrating strong moral and ethical values and a sense of humanity into everything we do. One area of ethical behavior and core values training is an appeal to the values and critical reflective thinking of our officers, and clearly articulate to them what ethical po- licing means. Page two of the Port Angeles Police Department's Policy Manual describes our duty to serve others, expectations of standards to be met, enforcement of the law without fear or favor, the badge of office as a symbol of public faith, a personal responsibility to maintain these high standards, and a dedica- tion to these objectives, ideals, and to something above ourselves. Through the embodiment of these values come behaviors that are practiced on and off duty through- out a lifetime. We also work to clarify ethical di lemmas and situations so as to think and train in respect to ethics in the same manner that we do with firearms and defensive tactics. Again, using the foundation of good people with strong values, we stress thinking and planning ahead, and placing situations into their proper perspective. For example, all of us know that one of the biggest per- sonal and professional investments we have is our career in law en- forcement. None of us would know - tingly do anything that would place that investment at risk. For situa- tions that might be "technically" ok but may foster the perception amongst stakeholders of an ethical breech, we can choose the course of action that does not place the in- vestment at risk. We have the power to make that choice. The Port Angeles Police Dept. has long had the saying "if you he you die." That is a reminder of the value we place on truthfulness and veracity. When we are thinking clearly (or at all), the truth is the only answer in our profession. It is easy for persons of high ethical and moral character to know the "right thing" and to do the right thing in a routine or recurring situation. Sometimes however, law enforce- ment officers face a unique set of events that require them to navi- gate complex circumstances with no preparation or planning. Some officers might hesitate when faced with a difficult and ambiguous situation that looks like nothing they have trained or practiced for. A failure to act in many of these situations can be deemed the same by the agency or the public as a pur- poseful act of commission. It helps to challenge ourselves in dealing with events without precedent to ask ourselves some questions to clarify our thinking: "Did I do what others with high standards have done or would do in the same situation?" "Did I attempt to cover it up or was I forthcoming?" "When faced with telling the story did I tell the truth the first time?" A well known football player report- edly said, "You can measure a per- son by how they treat a person who can do nothing for them." This is doing the right thing when there is no personal gain and no one is look- ing. We know we are human and can (and will) make mistakes. But we have a culture at PAPD that is based on the strong core values our staff has brought to the organiza- tion. We feature thinking and planning ahead in our policy, in our procedures, and in our training. We work toward practices and strate- gies that ensure our good people have all the tools and support needed to stay good. And, it goes without saying that the "Feasance Brothers" do not get invited to de- partment functions, nor do they have any keys to the building "WHO YOU ARE, WHAT YOUR VALUES ARE, WHAT YOU STAND FOR .... THEY ARE YOUR ANCHOR, YOUR NORTH STAR. YOU WON'T FIND THEM IN A BOOK. YOU'LL FIND THEM IN YOUR SOUL." Anne M. Mulcahny, CEO, Xerox Corporation PAGE 4 2010 2010 MIDYEAR REPORT MIDYEAR REPORT 0: Officers Receive Honor - PAPD Officers selected as Officer of theYear Corporal Robert Ensor - awarded for 2008 Corporal Robert Ensor (from written nomination) - Bob has been with the Port Angeles Police Department since 1993. He is widely recognized both within the Department and by other agencies as one of the most competent, hard working, and productive criminal investigators and police officers on the Olympic Peninsula. He is a subject matter expert in violent crimes and crimes against children, and an accomplished patrol officer and detective. Detective Ensor carries a substan- tial case load, does a high quality and professional job on every case, is known for being a "go to" person to help other officers or agencies, and routinely takes on fobs that no one else can or will do. For exam- ple, he was instrumental in develop- ing and implementing the child sex- ual assault protocol that is cur- rently in use by local detectives. He is known for tireless work on major, long term, and complex criminal cases, such as the Boze and Freese homicide cases, and the Marcht attempted homicide case. The latter two cases recently went to trial in Clallam County and were widely covered by the local media. e - Officer John Nutter - awarded for 2009 Detective Ensor recently received a written commendation from the Clallam County Prosecuting Attor- ney, Deborah S. Kelly, on his work on the Marchi and Freese cases. Quoting below from her March 25th letter sums up Bob and is typical of feedback we get on his work. "Detective Ensor was the lead officer in both cases which went out to trial simultaneously. He worked unflag- gingly in both cases right through their start... Detective Ensor contin- ued to work the case right through the time it went to jury. For exam- ple, the defense named eight new witnesses the week before trial started. Detective Ensor tracked each of them down, working over- time and days off, and determined they would be offering previously undisclosed evidence that would be damaging to the prosecution... His dedication to duty was instrumental in leading to Marcht's conviction as charged of Attempted Murder to the First Degree." In my 27 years work in Federal, state, and local law enforcement I have known but a few law enforce- ment officers or special agents who work to the level of excellence achieved by Detective Bob Ensor. When I arrived in this assignment six months ago I noted that he was a star performer amongst a group of excellent officers. I also noted that Bob was and is one of the "closers" who takes on and finishes the com- plicated fobs, is a recognized leader and role model amongst the troops, and is part of the "results" side of the Port Angles Police Department that allows us to aspire to be best police department in the world. Bob's impact on the department and community is more than what would be typical of one officer. (Bob has since been promoted to Patrol Corporal.) Officer John Nutter (from writ- ten nomination) - "Officer Nutter has distinguished himself with the Port Angeles Police Department over the last three years. He has proven himself to be a highly moti- vated and energetic officer, and one who goes beyond what is expected. in the performance of his duties. For being relatively new to the law enforcement profession John is a top performer. He is an individual who consistently exceeds expecta- tions in all the important metrics used to evaluate performance (i.e., technical knowledge, customer ser- vice, quality and quantity of work, attendance and risk management). Officer Nutter comes to the Port Angeles Police Department with a masters' degree in business admim- stration and a background in corpo- rate management. Officer Nutter has chosen to be a police officer over other career paths that might offer more financial reward and more status because he views police work as his calling. His performance as a police officer reflects his dedica- tion to others, his dedication to the community, and a posture of leader- ship in a variety of situations. Offi- cer Nutter has been commended by peers, supervisors, the Chief of Po- lice, prosecutors, and defense attor- neys for his performance and com- mitment to others." - Brian Smith, Deputy Chief, PAPD M-9 MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 5 I Communications Division The first 6 We are currently working on the next phase of the project, which is installation of the infrastructure for mobile data. The expected go -live date for this project is November 1, 2010. Mobile data will allow offi- cers in the field to receive CAD, re- cords and criminal history informa- tion via a computer installed in their vehicles. Fire and EMS re- sponders will also have the ability to receive CAD information from a computer installed in their vehicles. In addition to the mobile data pro- ject, we are working on two other projects. They are the replacement of the fire suppression system in the telephone and radio equipment rooms and the replacement of the 9- 1-1 telephone system servers and work stations. Both of these pro- jects are also being funded by the 11101h of 1% Emergency Commum- cations Sales Tax reserved for capi- tal improvements. Communications Officers and Su- pervisors have collectively worked over 1,200 hours of overtime so far this year. This was due in large part to three vacant communica- tions officer positions. Three com- munications officers were hired and began the training program on May 10, 2010. The training program will take approximately four months to complete, at which time the new officers will begin working a console Traffic Infractions and Collisions 160 140 120 100`" 80 ,4u 60 40 20 0� 93 50 45 35 30 25 15 10 0 alone. With the resignation of a veteran communications officer on the 15th of June, we currently have one vacant position The hiring process is in motion and we hope to have that position filled within two months. For in-service training this year, all of the communications officers and supervisors attended 16 hours of training in the use of the new CAD system. In addition, the communi- cations staff has participated in various on-line classes. We are currently exploring a new program to provide Emergency Medical Dispatch pre -arrival in- structions to callers. The new pro- gram, if approved, will provide a significant cost savings and can be taught in-house by Communications Supervisor Karl Hatton. The Washington Cities Insurance Authority (WCIA) annual audit this May produced no findings This is a testament to the outstanding com- munications staff. ?(Sp �� o �ea\�e a\roo��4Oec�0 N- "6-\, �oQ S 0 P\o�r� Q �\`��er \Ge�S eJ�o\a�\o`' �. �Q �a 5� 50 45 35 30 25 15 10 0 alone. With the resignation of a veteran communications officer on the 15th of June, we currently have one vacant position The hiring process is in motion and we hope to have that position filled within two months. For in-service training this year, all of the communications officers and supervisors attended 16 hours of training in the use of the new CAD system. In addition, the communi- cations staff has participated in various on-line classes. We are currently exploring a new program to provide Emergency Medical Dispatch pre -arrival in- structions to callers. The new pro- gram, if approved, will provide a significant cost savings and can be taught in-house by Communications Supervisor Karl Hatton. The Washington Cities Insurance Authority (WCIA) annual audit this May produced no findings This is a testament to the outstanding com- munications staff. 163 180 -_ 160142 140 w 120 -" 100 " 80 60 40 20 0" No. Collisions -10 0 o 5��� a\roo��4Oec�0 N- "6-\, �oQ S 0 p��00 5 �e �a\wo 5� 163 180 -_ 160142 140 w 120 -" 100 " 80 60 40 20 0" No. Collisions -10 0 I PAGE 6 2010 MIDYEAR REPORT MIDYEAR REPORT I W Detective Division • Port Angeles Police Detec- tives' duties include investi- gation of seri- ous crimes, including crimes against Detearve Corporal children. De - Jason Vmda tectives also complete inter- nal investigations, pre-employment background investigations and monitor addresses of registered sex - offenders. In the first half of 2010 the sergeant, corporal, and three detectives accepted over 70 new criminal cases for investigation. Some examples of cases investi- gated by detectives are as follows: LEVEL 3 SEX OFFENDER SEN- TENCED IN NEW CRIMES: Trevor L Franklin, 19, of Port An- geles was sentenced April 1, 2010, to 366 days in state prison. Frank- lin pled guilty to Failure to Register as a Sex Offender, and Assault 3, both class "C" felonies. The charges resulted from two separate cases from January 2010. The most recent case began as part of the ongoing process of visiting residences to confirm addresses of local registered sex offenders. De- tectives discovered that Franklin was not living at his registered ad- dress in the 600 block of W. 9th St. Franklin is registered as a Level 3 (high risk to re -offend) Sex Of- fender. The earlier assault case started at about 1:30 a.m. on New Year's morning, when Port Angeles Police Officers responded to report of a fight near 13th and Laurel Streets. As a result of that investi- gation, Franklin was charged on January 4, 2010, with assault. LEVEL 3 SEX OFFENDER SEN- TENCED TO 5 YEARSFOR NEW CRIMES: Dan Klein, 26, of Port Angeles was sentenced April 29, 2010 to five years in state prison to be followed by three years of probation. Klein pled guilty to two counts of Communication with a Minor for Immoral Purposes, both felonies. Klein, a Level 3 Sex Of- fender, had been registered as liv- ing at a hotel in the 400 block of E. lBt St. Klein was previously convicted of Assault 3 with Sexual Motivation in a 2008 case involving an 18 year- old female, and convicted of Lewd or Lascivious Acts with a Child un- der the Age of 14 in a 1999 case involving a 12 -year-old female. Klein had been charged on October 29, 2009, for one count of Unlawful Imprisonment and five counts of Communication with a Minor for Immoral Purposes. While Klein awaited court proceedings in this case a protective order was issued prohibiting Klein e from having con- tact with six young female victims. During the latest investigation, de- tectives took com- plaints from six females between the ages of 13 and 18 regarding incidents that oc- curred at a hotel room during the summer of 2009. DEFENDANT SENTENCED IN CHILD RAPE CASE: Leslie Paranteau, 21, of Port Angeles, was sentenced April 15, 2010, to six months jail time and ordered to complete Sex Offender Treatment. The court further ordered that Paranteau will be sent to state prison if he fails to comply with conditions set by the Court after his release from County Jail. The case began on August 31, 2009, when a Port Angeles Police Officer took a report from a mother who said that her 14 -year-old daughter had been raped. A Detective was assigned to investigate the case. On October 9, 2009, a warrant of arrest was issued for Paranteau. On October 20, 2009, Paranteau turned himself in at the police sta- tion and was arrested. DEFENDANT PLEADS GUILTY TO RAPE OF A CHILD: Aaron E. Arnold, 19, of Port Angeles, pled guilty to charges of Rape of a Child 3. The case began on October 7, 2009, when a Port Angeles Police Officer took a rape complaint from a local middle school student, un- der the age of 14. The victim re- ported that she had been raped while in her home by a man she knew. The case was assigned to a Detective for further investigation. On October 15, 2009, the Detective completed the investigation and arrested Arnold. Arnold was charged that same day with Rape of a Child, Second Degree by the Clallam County Prosecutor. SUSPECT CHARGED WITH ASSAULTING CHILD: Teresa M. Latimer, 39, of Port Angeles, on March 16, 2010, was charged with Assault of a Child 3. The case be- gan on January 26, 2010, when Port Angeles Police received a re- port that a small child had been bitten by the suspect. A detective was assigned to the investigation that same day. After reviewing the case a deputy prosecutor charged Latimer. SUSPECT CHARGED WITH UNLAWFUL POSSESSION OF A MACHINE GUN: Jesse L. Spencer, 53, of Sequim was charged May 21, 2010, with Unlawful Possession of a Machine Gun, a felony violation of Washing- ton State Law. M-11 MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 7 1 (Continued from page 6) The case began when a citizen con- tacted Port Angeles Police with con- cerns about a man with a fully auto- matic rifle. Detectives were as- signed to the case, and the investi- gation led to the arrest of Spencer west of Sequim. Washington State Law defines a machine gun as a firearm modified or designed to fire continuously with one pull of the trigger so long as the trigger re- mains depressed and there is am- munition properly supplied to the weapon. "Federal Law allows for possession of a machine gun under limited circumstances with proper documentation. However, each of the 50 states have their own laws as well. Washington State broadly pro- hibits possession of a machine gun with only a few exceptions for po- lice, mili- tary, per- sons who r e p a i r weapons for police or military, exporters who comply with all federal laws, and persons who possessed a machine gun within Washington prior to July 1st 1994 in compliance with Federal Law." SUSPECT CHARGED WITH FIVE COUNTS OF UNLAWFUL POSSESSION OF FIREARM: Scott L. Anders, 37, of Port Angeles was charged April 27, 2010, with five counts of unlawfully possessing firearms. Anders' criminal history, which includes three convictions for burglary, prohibits him from pos- sessing firearms. On Monday, April 26, 2010, Port Angeles Police received a report of a threat. During the investigation of that incident Detectives observed Anders outside his home and ar- rested Anders for an unrelated su- perior court warrant. After obtain- ing a search warrant for the resi- dence officers and detectives searched the home and seized evi- dence including five firearms and ammunition. The firearms included three .22 caliber rifles, a 12 gauge shotgun, and a .40 caliber handgun with magazines designed to hold 15 rounds each. Anders was booked into the Clallam County Jail for the unrelated warrant and for unlawful firearm possession. DEFENDANT CONVICTED IN LANDING RESTAURANT EM- BEZZLEMENT CASE: Melanie A. Royce, also known as Melanie Piper, 52, of Clallam County was convicted May 26, 2010, by a jury for Theft 1. The case began in May of 2006 when the owner of the Landing Restaurant reported to Port Angeles Police that Royce/Piper, who had been the man- ager at the Landing, had embezzled several thou- sand dollars from the res- taurant. The investigation included an examination of financial records, a search warrant for bank records, and victim, witness, and suspect interviews by detectives. After re- viewing the investigation a deputy prosecutor from the Clallam County Prosecutor's office filed first degree theft charges against Royce in June of 2007. into the incident involving the dog, and the attempt to locate the vic- tim's father, officers also recovered a van and a motorcycle that had been reported stolen. Then on Feb- ruary 4, a Port Angeles Police De- tective arrested and booked Sims into the Clallam County Jail for Possession of Stolen Property and Child Endangerment. The dog was taken to the Clallam County Hu- mane Society. While the Port Ange- les case was pending, Sims was free on bail. However, on February 22, Port Angeles Detectives received notification that the State of Alaska would extradite Sims from Washington State on Alaskan warrants for a series of property crimes including theft and fraud. That same day a Detective arrested Sims and booked him into the Clallam County Jail for the Alaska charges. Extradition to Alaska is still pending. 0 SUSPECT PLEADS GUILTY IN DOG BITE CASE: Matt B. Sims, 38, of Port Angeles, pled guilty March 10, 2010, to one count of Pos- session of a Stolen Motor Vehicle and one count of Dangerous Dog Attack, both felonies. As a result Sims was sentenced to three months confinement in the Clallam County Jail. The case began on February 3, 2010, when a woman reported to police that young boy had been mauled by a dog. A citizen, who was not able to find the victim's father, trans- ported the victim to the hospital. During the ini- tial investigation DEFENDANT CHARGED WITH THEFT BY DECEPTION: Richard G. LeBlanc, 29, transient, was charged June 7, 2010, Theft 1 by Deception, Unlawful Issuance of Bank Checks, and Criminal Imper- sonation 1, all felonies. The case began on May 31, 2010, when Port Angeles Police Officers responded to a report of possible fraud in progress at a business in the 100 block of E. 3rd Street. Offi- cers contacted LeBlanc and learned that he was wanted in Baca County, Colorado, for a property crime. Offi- cers detained LeBlanc and contin- ued to investigate the Port Angeles incident as well. LeBlanc was booked into the Clallam County Jail for the Colorado warrant. A PAPD Detective was assigned to continue the investigation. After reviewing the investigation a deputy prosecu- tor filed charges. 0 Aiiv i/7", M-12 PAGE 8 2010 MIDYEAR REPORT MIDYEAR REPORT I 6�OPNET L The Olympic COCAINE DEALER ARREST. On February 5, 2010, detectives assigned to the Olympic Peninsula Narcotics Enforcement Team (OPNET), officers with the Port An- geles Police Department and offi- cers with the Sequim Police Depart- ment, executed a search warrant in the 800 block of South C Street in Port Angeles. The search warrant was the result of an investigation into the sales of cocaine. Taken into custody without incident was Robert L. Stone, age 23. Stone was booked into the Clal- lam County Correctional Facility on charges of delivery of a controlled substance, specifically cocaine. MARIJUANA GROWERS AR- RESTED. On February 3, 2010, detectives assigned to the Olympic Peninsula Narcotics Enforcement Team (OPNET) and officers with the Port Angeles Police Department executed two search warrants in the city of Port Angeles. Both search warrants were the result of investi- gations conducted by OPNET into the manufacturing and sales of marijuana. The first search warrant served was in the 2300 block of W 18th Street. Growing marihuana, processed marijuana and evidence of the sales of marijuana were located in the residence. Sherry N. Buchanan, age 26, and Joshua W. Buchanan, age 30, were taken into custody without incident. Sherry and Joshua Buchanan were booked into the Clallam County Correctional Facility on charges of delivery of a controlled substance, manufacturing marijuana and pos- session of marihuana with intent to deliver. - The second search warrant was served in the 2100 block of W 15th Street. Growing marihuana, proc- essed marijuana and evidence of the sales of marihuana were located in the residence and outbuildings. David J. James, age 48, and Mi- chelle A. Bateham, age 30, were taken into custody without incident. James and Bateham were booked into the Clallam County Correc- tional Facility on charges of deliv- ery of a controlled substance, manu- facturing marihuana and possession of marijuana with intent to deliver. MARIJUANA GROWER AR- RESTED. On January 10, 2010, deputies with the Jefferson County Sheriff's Department were sum- moned to a residence in the 100 block of Meridian Way, Chimacum, WA, in unincorporated Jefferson County, regarding a call for service that was not drug related. During the investigation of that incident, deputes developed information that a marijuana growing operation was in an outbuilding at that location. The information was given to the Jefferson County Sheriff's Depart- ment detective that is assigned to the Olympic Peninsula Narcotics Enforcement Team (OPNET). That information was subsequently pre- sented to a Jefferson County Supe- rior Court Judge, who signed a search warrant authorizing a search of the residence and out- buildings at that location. On January 25, 2010, OPNET de- tectives and Jefferson County depu- ties executed the search warrant. Detectives discovered 341 live mari- juana plants in an outbuilding. Processed marihuana was found in that outbuilding and the main resi- dence. Taken into custody was Randall L. Heppell, 64 years of age, of Chi- macum, WA. Heppell was subse- quently booked into the Jefferson County Correctional Facility on the charges of Manufacturing Mari- juana and Possession of Marihuana with Intent to Deliver. TWO ADULTS ARRESTED FOR SELLING METHAMPHETA- MINE AND PRESCRIPTION PILLS. On February 17, 2010, de- tectives assigned to the Olympic Peninsula Narcotics Enforcement Team (OPNET) and officers with the Sequim Police Department served a search warrant at a resi- dence in the 1000 block of W. De- seret Avenue in Sequim. The search warrant was the result of an inves- tigation into the sales of metham- phetamine and prescription pills. Taken into custody without incident was Heidi E. Irwin -Loran, age 37, and James C. Loran, age 39. A quantity of methamphetamine, pre- scription pills and cash was seized from the residence. Irwin -Loran and Loran were subse- quently booked into the Clallam County Correctional Facility on charges of delivery of controlled substances and possession with in- tent to deliver controlled sub- stances. 911OV, I MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 9 1 Police Department Recognized forTraining Efforts yl4q°Iiia Sergeant Tyler Penmger works long and hard to manage the Department's training program. Washing - Sergeant Tyler Pemnger ton Administrative Code (WAC) 139.05.300, among other things, requires that Police Officers receive 24 hours of training annually. This training may be developed and presented by the Department or by other agencies. To meet the requirement train- ing must be approved by the Commission. Sergeant Pemnger not only manages our training program, but as the PAPD Range Master he leads a team of Officers who develop and present a great deal of the firearms training for our department and often other agencies. U+IASHINGiGN S1hTE CRIMINAL JUSTICE TRAINING COMMISSION !.I.c.Y,2 � Pa':cr_< rh D Erectr � ir•m„x� L,16 ,Ay6 4A - Fkctie June 29, 20 s0 Chief Terry Gallagher Port Angeles Police Department PO Box 1150 Port Angeles WA 98362 Dear C,nief, Gallagher In keeping with WAC 139.05.300, the Washington State Crlmmaf Just, ;e Trailing Commission MISCJTCI is conducting the training year 2009 audit of the requirement for hours of annual +n-servm trarn,ng I am pleased to report that an aada of your 2009 training records reflects that your agency l:as fully complied with the WAC I wan' to congratulate you and your organization for meeting this requirement Through the efforts of you and your staff you have clearly demonstrated a commitment to Increasing the level of professionalism of UVash:nglon peace officers I would like to thank you for the courtesy and assistance ycur staff showed Regional Training Manager -Pa Toth during the recent audit, t lcoK forward to our continued collaboration In providing in-service training to your staff Sincerely, Michael D Parsons, Ph,D Executive Director WashiV(mMatte Ci''imi 3 1CC mini (�cma�siam ' Hereby sve n nitr_%that ,> �Cice tartm t 11as catisfart0ri6r met the requirements of HVAC 1 3 9 4 5-3 1111 & RCti' .63.l0l -19510 achiCve , 2oog Com ante of the Gln—Service l lruining Nondate ' Given June 29, 2010 4 1 h 1 '`'ylls Michael 11. Par na . PhtS . hi'Sf JTC Director When you consistently maintain a positive tra a of mind, you -ii become known as a,pro lem-solver rather Than a com- plainer. people avoid complainers. They seek out problem -salvers. - Joseph sommervilie C7 PAGE 10 2010 MIDYEAR REPORT 9� Downtown Resource Officer Downtown stats for 1st Quarter 2010 Less than 3 of any call type - not re- corded, except felony. Malicious Mischief (vandalism) ..19 C Assault Misdemeanor ............... 7 Assault Felony ................... Assault Felony ........................ 1 22 Disturbances .......................... 30 911 Abandoned ....................... 19 a Drug 61 Theft/Fraud ........................... 35 Vehicle Accidents ................... 22 Warrant Arrests .................... 17 Threats ................................. 15 Duane Benedim Downtown Burglaries .............................. 3 Resource Officer Harassment .......................... 6 Drunk Person ......................... 6 Alarms................................... 8 Trespass ................................. 14 Violation Court Order .............. 7 Robbery................................. 1 DRO handled calls (out of the 533) ....................... 93 Bicycle / Skateboard / Cigarette Contacts Downtown area .......................70 Gateway Transit Center .......... 87 Downtown report for 2nd Quarter 2010 Less than 3 of any call type - not recorded, except felony. Mal Mischief (Vandalism).... 16 Assault Misdemeanor .......... 10 Assault Felony ................... 1 Disturbances ...................... 22 911 Abandoned ................... 31 Drug................................. 6 Theft/Fraud ........................ 61 Vehicle Accidents ............... 19 Warrant Arrests ................. 28 Threats .............................. 24 Burglaries ......................... 4 Harassment ....................... 11 Drunk Person ..................... 14 Alarms ............................... 18 Trespass ............................ 16 Violation Court Order. ........ 5 Robbery .............................. 0 DRO handled calls (out of the 600) ....................117 Bicycle / Skateboard / Cigarette Contacts Downtown area .......................102 Gateway Transit Center .......... 184 "Community Policing, in its simplest terms, is about building rela- tionships and solving problems." - Bernard K. Melekian, Director Office of Community Oriented Pohcing Services Officer Mike Johnson employing community -oriented patrol car washing, with Officer Andrew Heuett and Officer Kon Malone and PAFD Captain Jamie the neighborhood children. Mason are honored as "super heroes." MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE I I School Resource Officer Flexibility The School Resource Officer is a uniformed officer who works di- rectly with the schools within the city limits. I view each school as a mim-city and myself as the lone police officer for those cities. Be- cause of the different grade levels, each school has its own unique con- cerns requiring an adjusted re- sponse for different kinds of calls for service. As the School Resource Officer, I am a member of the Detective Division of the police department. Even though my primary responsibility is to the schools, I have often been tasked with the following duties: • assist with mayor crimes inves- tigation, • on-call detective rotation, • assisting OPNET as a member of a warrant entry team, • sex offender checks, • assist patrol and traffic enforce- ment when necessary. I carry a police radio with me at the school and respond to incidents away from the school when needed. As the School Resource Officer I have numerous contacts with teach- ers, parents, school administration and citizens where there is no need for a dispatch record to be created. In addition to being a law enforce- ment officer, I often find myself act- ing as informal counselor and teacher. During the first quarter of 2010, through school -related activ- ity alone, I accumulated the follow- ing statistics: • 318 Total contacts • 26 Arrests • 32 Reports • 20 Traffic -related calls • 22 Safety stand-bys • 16 Community Orientated Po- licing -related activities • 1 Weapon seized • 1 Referral An abstract of the types of calls I have handled includes the follow- ing: alleged sexual misconduct and assault, felony level drug crimes, burglary, trespass, assault/assault domestic violence, criminal traffic, MIP, harassment, and warrant ar- rests. The best outcome of a situation was involved with this quarter was: On 3-25-10 I became aware that a 14 -year-old female Port Angeles High School Student had recently run away from home. The girl's parents filed the runaway report with Clallam County Sheriffs De- partment due to the fact that they live outside the city limits. The girl had reportedly run away with an adult male who was not from the local area and had possibly gone to California. In talking with Port Angeles High School Security Officer Cheryl Johnson about the issue, I remem- bered that I had made contact with the male on an unrelated issue sev- eral weeks earlier. Using the de- partment's newly updated records system, I researched the previous incident and was able to locate the male's name. Combining information I learned from police records with internet searches, I was able to learn the exact names, addresses and phone numbers of the male's previous con- tacts in California. I contacted city and county law enforcement agen- cies in California and was able to verify the information I had learned and search for the female. Law en- forcement in the area did not locate the girl but did learn that it was likely the girl may have been re- turned to Washington. The father of the girl called and told me that he had received informa- tion his daughter may be in Olym- pia. The father had only the first name of a person she may have been staying with. Working with Johnson, I contacted a former friend of the girl and learned a possible last name for the person the girl was staying with in Olympia. I again searched police records and the internet and discovered names, addresses, schools and phone num- bers of possible contacts in the area. I contacted an Olympia area School Resource Officer, advised him of the situation and requested his assis- tance. A short time later, I received a call from that officer and learned that the girl had been found and taken into custody. The girl was later returned home. Having outcomes like this makes it all worthwhile. PAGE 12 2010 MIDYEAR REPORT MIDYEAR REPORT jgPatrol Division POLICE DEPARTMENT TO STEP UP ENFORCEMENT REGULATIONS IN SKATE PARK REGARDING BICYCLES. January - The City of Port Angeles Municipal Code (PAMC) describes the Port Angeles Skateboard Park as an area where "bicycle" use is restricted. The City's Parks & Rec- reation Division has posted regula- tions regarding park use at the en- trance to the Skateboard Park, and the Police Department has taken an approach of community education toward violations that involve bicy- cle use in the park. Due to an increased number of com- plaints about bicycle use in the Skateboard Park, the Police Department began using the en- forcement steps out- lined in PAMC re- IN garding improper bi- cycle and skateboard use. The en- forcement steps included verbal warnings, issuance of citations to bicycle riders, and possibly their guardians, as well as seizure of bi- cycles. TELEPHONE SCAM - CREDIT CARD INFORMATION. Febru- ary - The Port Angeles Police De- partment and local banks continued to receive calls, numbering in the hundreds, regarding the telephone credit card scam that is circulating in the 4 Port Angeles and surrounding areas. Similar calls appear to have oc- curred across the Olympic Penin- sula. The Port Angeles Police Depart- ment requested that citizens do not call the police or their bank to re- port these types of calls unless they have given out personal account information or other information that may allow someone to compromise their identity. Persons should not have suffered any loss unless they gave the caller credit card information and / or other personal information. Many citizens did not have an ac- count with the financial institution that was referenced in the phone call. The case remains open and informa- tion has been forwarded to the Fed- eral Bureau of Investigation. POLICE PARTNER WITH MCDONALD'S IN SAFE RIDER PROGRAM. May - The Port Ange- les Police Department (PAPD) in partnership with the Port Angeles McDonald's, will participate in the Safe Rider Program, designed to reward children who wear helmets with a special treat from McDon- ald's. Through the program, PAPD offi- cers will distribute "Safe Rider Cita- tion" cards to children they see wearing helmets while bicy- cling. The cards not only commend the child for safe behavior, they also entitle the child to one free reduced - fat vanilla ice cream cone from McDonald's Restaurant at 1706 East Front Street in Port Angeles . Port Angeles Police Officer Clay Rife, the coordinator of the effort for the PAPD said, "This program is a great opportunity for PAPD Officers to make positive contact with kids in our community, reward them for good behavior and emphasize the importance of wearing helmets whenever they ride." In 2009, more than 20 agencies participated in the program in an effort to keep kids safe. This is first year PAPD has participated. The program runs through December 31, 2010. FUGITIVE CAPTURED BY K-9 OFFICERS — ANOTHER AR- RESTED. July - Guy L. Charles, 45, of Clallam g County, wanted for ' Department of Corrections and Clallam County Superior Court warrants, was ap- prehended by Port Angeles Police K9 Kilo Officers on June 29, 2010, south of Fairchild International Airport. Charles was apprehended after a struggle with K-9 Kilo and Officers. On June 30, 2010, Charles was charged with Possession of Methamphetamine, Resisting Ar- rest, Obstruction of Law Enforce- ment, and Possession of a Danger- ous Weapon. Charles remains in custody on $100,000 bail. He ap- peared in Clallam County Superior Court on July 9, 2010. ON THE LIGHTER SIDE! Admiral Glen Roggenbuck launching for harbor patrol? Chef Dan Morse pursuing hobbies while on -duty? MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 13 R , Training- reaps -re'wa'rds Sergeant Glen Roggenbuck deploys spike strips ending a high- speed pursuit that involved municipal, state, and federal law- enforcement agencies. _ _ _ • PAGE 14 2010 MIDYEAR REPORT Support Services Gale Turton, Support Services Technician Gale is the Department point man for junk vehicle abatement and parking issues outside of the Downtown area. This "key" relates to the charts: JVPP & JVCP are vehicles certified as junk vehicles and authorized for towing at the request of private property owners (PP), or the City (CP). Removed by Owner - moved from City property subsequent contact. Other Action - Self -initiated contacts acted upon during the course of other duties. Often there is no dispatch records of these activities because they were not dispatched. Parking Enforcement Sandra StraffordRevenues Parking Enforcement NO. Parking Tickets 1st half 2009 lsthalf 2010 Thanks, from those we serve... 0w 3/10/10 a,nd, a.Rac on, 3/14/10 I a bkecl Sgt 3cwlr McFall for some, regcwdwig, a, younW ma,w whose' fa+nV y ha& canta.ctedl me, raga rd wiW sv2nta flce. abu4e, a n& the, fact h& had/ n.ot retu rne& harm Lw at~st 3 0 d a yk There, were ai4o recL f la gk u-rouund i vi* tko u g� of swicid e, 1i a rlr, ay alwa ys; gave, me, clear a+ul, stun& gaidain DarL,t* ctw sec4n, conversatwn, on, 3/14/10 13a.rb- wgbrmed, mei that Sgt. Bob- Ensor wa4, shit sergeant and, to- call h,itw wa1v detaalw for e l-wr a, n ,g, person, or a, wel fare checks Mem fa.mLLy decided, to- report to- law evi forceMZnt to- a4ki4t locaVWLu theur aon., as- they had. an, Lftitervev►tun a st stavi.di4 , by a4,L& a, treatment fa c±, y 1, ne& up. Whew I took the, fa vuZy LvLto- the, poU.c& depa.rtm nr we/ were greeted- by 3alr Ensor a.nd, Officer Sta maw. Vix, ca1m, cav�ned, and, pro fea� treatww n t th 4k f4*na y a4i& I receW e, wa k not a. rises to- mem but' &nc e, a ga n/ a, re+n n d er at how ded.;,cated- the' PA PD -fr&" tap dowIn C4, to- provLz"not owdy protecturn, for CUr Cly but to asbovaiq, fa ndzek avid, wLddvidualk Lw an, appropriar'ely cov aystcnate, w du uq,,w tryLn.g, t'bnwk. Bo4y3=n4orwas wwtlic&4 la+i&fccase&LwgatherLn,g,Lnf matto-wfrom the-fa4iaywhd&si*m - ta.ftieow&Ly pax 41ti expla.L� every detail they a4ked, about At- many po,,nt h& even, anVc�atedl their covuern-, anal, helpeal abate, tho e: Whe,v Bob- ha& to- leave, Offuer St -anon, tool/ over anal, was - •equally ak helpful a n cL c&m paste o* a e- rha.n k, you, to- you, a4q& yaar staff for an.ce, aga i, for bei there a*n&thavikkto-them for doldip-wpl*Lrvthe-best way posmtge., 3ecca,Korby, Fxecutwe DLrector, Healthy FawiZUakof ClaUamCounty 938 1000 $13,000 800 w ,y ` . $12,500 $12,000 600 $11,500 400 y fir, $11,000 200 - "" $10,500 0: " y $10,000 Sandra StraffordRevenues Parking Enforcement NO. Parking Tickets 1st half 2009 lsthalf 2010 Thanks, from those we serve... 0w 3/10/10 a,nd, a.Rac on, 3/14/10 I a bkecl Sgt 3cwlr McFall for some, regcwdwig, a, younW ma,w whose' fa+nV y ha& canta.ctedl me, raga rd wiW sv2nta flce. abu4e, a n& the, fact h& had/ n.ot retu rne& harm Lw at~st 3 0 d a yk There, were ai4o recL f la gk u-rouund i vi* tko u g� of swicid e, 1i a rlr, ay alwa ys; gave, me, clear a+ul, stun& gaidain DarL,t* ctw sec4n, conversatwn, on, 3/14/10 13a.rb- wgbrmed, mei that Sgt. Bob- Ensor wa4, shit sergeant and, to- call h,itw wa1v detaalw for e l-wr a, n ,g, person, or a, wel fare checks Mem fa.mLLy decided, to- report to- law evi forceMZnt to- a4ki4t locaVWLu theur aon., as- they had. an, Lftitervev►tun a st stavi.di4 , by a4,L& a, treatment fa c±, y 1, ne& up. Whew I took the, fa vuZy LvLto- the, poU.c& depa.rtm nr we/ were greeted- by 3alr Ensor a.nd, Officer Sta maw. Vix, ca1m, cav�ned, and, pro fea� treatww n t th 4k f4*na y a4i& I receW e, wa k not a. rises to- mem but' &nc e, a ga n/ a, re+n n d er at how ded.;,cated- the' PA PD -fr&" tap dowIn C4, to- provLz"not owdy protecturn, for CUr Cly but to asbovaiq, fa ndzek avid, wLddvidualk Lw an, appropriar'ely cov aystcnate, w du uq,,w tryLn.g, t'bnwk. Bo4y3=n4orwas wwtlic&4 la+i&fccase&LwgatherLn,g,Lnf matto-wfrom the-fa4iaywhd&si*m - ta.ftieow&Ly pax 41ti expla.L� every detail they a4ked, about At- many po,,nt h& even, anVc�atedl their covuern-, anal, helpeal abate, tho e: Whe,v Bob- ha& to- leave, Offuer St -anon, tool/ over anal, was - •equally ak helpful a n cL c&m paste o* a e- rha.n k, you, to- you, a4q& yaar staff for an.ce, aga i, for bei there a*n&thavikkto-them for doldip-wpl*Lrvthe-best way posmtge., 3ecca,Korby, Fxecutwe DLrector, Healthy FawiZUakof ClaUamCounty MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 15 1 K9 Report The Port Ange les Police De- partment's K9 Unit has had numerous appli- cations this year, deploying on rob- beries, burglar - Corporal Kevin Miller les, various as - Handler & Master Trainer saults, warrant services, and violations of court orders, among other crimes. Quality training is a critical component to the success of our dogs and keeping up with trends, training techniques, and new case law. So far this year, aside from locating suspects, we have recovered evi- dence from crime scenes, cleared houses/buildings/vehicles, detected illicit drugs, and worked In support of tactical teams to apprehend sus- pects. There are some clear advan- tages to having a K9 unit that can- not be measured by statistics. Just the presence and sound of the patrol dogs In the car tends to de-escalate unruly subjects and disturbances. The K9 unit's presence also tends to discourage suspects from fleeing and assaulting officers. Searching large buildings and businesses properly takes a great deal of an agency's resources. Using a K9 team gets the fob done faster, safer, and more efficiently. Our K9 teams are challenged by various scenarios and obstacles in the course of our work that require a great deal of training to ensure successful outcome. Our dogs en- counter numerous obstacles in the field and we try to anticipate what those situations or events might be and teach the dog how to overcome them. We train the dogs to: climb ladders, work through dark tunnels, navigate crawl spaces, dump off our back to a roof or higher elevation, and apprehend suspects from mov- ing objects. All of this takes condi- tioning and requires confidence building. Recently in training, we used a bal- listic shield to lift and deploy the dogs up into an attic to apprehend a suspect. We, at times, have sus- pects who hide in attics under blown -in insulation, so this was very applicable to a situation that could occur. We started by getting the dog comfortable on a platform and then lifted it to increasing heights before hoisting the dog over our heads into the access area. We then reversed the exercise to get the dog down. This takes a lot of confi- dence and conditioning, which we instill continually, from the dogs' initial development and imprinting. Officer Brusseau and I attended a national K9 seminar where we were exposed to a number of different training styles, philosophies, and concepts. We are very excited to apply this learning In our training sessions. We were able to attend a course covering the most recent case law and legal issues that affect our specialty. We are able to benefit from the information and resources that we gained from this seminar. Having a K9 unit in our department is a tremendous asset and acts as a force multiplier in our patrol divi- sion. It is my mission (and passion) to ensure that all patrol dogs on the Olympic Peninsula have the neces- sary tools and abilities to enhance and support the safety of their han- dlers and their respective agencies. Through training and dedication we provide an effective team to locate and apprehend suspects that threaten our citizens' quality of life. 4Aw Gaining confidence on a platform... 0 and into the air. Hoisting the K9 into the crawl space access . ... and back out again 0 PAGE 16 2010 MIDYEAR REPORT MIDYEAR REPORT W PAPD Call Statistics • 16000 14000 12000 10000 8000 6000 4000 2000 0 No. 911 Calls 2009 2010 FIRST HALF STATISTICAL COM- PARISONS - The comparisons above may not be "true" comparisons (same data counted the same way it has always been counted). The up- grade in our NWS CAD and Records software limit the Department's ability to make true comparisons between data from 2009 and 2010. Terminology and function have both changed. Only the 911 data shown in the 12000 10000 8000 6000 _. 4000 -" 2000 1- 0 chart above should be a true com- parison. In other words, both sets of data were collected and counted in the same manner. The chart show- ing number of incidents, however, does not show a Erue'comparison. Our recent CADILERMS (computer aided dispatch/law enforcement re- cord management system) upgrade resulted in some terminology changes and some changes in the way the system counts or numbers events. In previous PAPD reports, Quick Calls (actions initiated by Crime Statistics -Analysis The chart on the facing page appears incomplete for a reason. The Port An- geles Police Department has updated their RMS (Records Management Sys- tem) software to NWS LERMS (New World Systems Law Enforcement Re- cords Management System). For several reasons, comparable sta- tistical data from 2009 and 2010 can- not, at this time, be drawn from LERMS. So, no comparison is offered in the chart. The Records Division report, on page 18 of this document offers more infor- mation about our LERMS update proc- ess and some of the difficulties the Department is still working through in thatregard Our new RMS allows PAPD to build queries that can pull data from the RMS. This data can then be collated and used in reports, charts and other documents Thanks to Carla Jacobi for building a query that provided the numbers noted on the facing page. Our hope was that these numbers would allow "near" comparison with crime statistic numbers reported in previous PAPD Reports. No such comparison could be made. You may notice that some crime cate- gory statistics on the facing page (for the first 6 months of 2010) equal or exceed the numbers in the yearly threshold for said category. Please No. Incidents 2009 .1. ___ .....__.....__....,,_._.,1 2010 officers) and Dispatches (requests that are dispatched to an officer for service) were counted and reported separately. Dispatches are now called Incidents. Most activities previously recorded as "Quick Calls" are also now recorded as incidents. The comparison made above was made by combining the number of quick calls and dispatches that oc- curred in the first half of year 2009 and comparing that number to the number of "incidents" recorded in 2010. recall that a threshold is a range of numbers representing "normal" that is calculated from historical data. Theo- retically, if crime statistics fall within the threshold, there is little cause for alarm; however, further evaluation of large swings may still be necessary. In the future, this page will again pro- vide comparisons of crime statistics that are useful for recognizing crime trends. These future comparisons however, will utilize crime data recorded and counted using the new NIBRS report- ing rather than the old Summary re- porting. For that reason, historical comparisons will continue to be a chal- lenge. s 2009 2010 FIRST HALF STATISTICAL COM- PARISONS - The comparisons above may not be "true" comparisons (same data counted the same way it has always been counted). The up- grade in our NWS CAD and Records software limit the Department's ability to make true comparisons between data from 2009 and 2010. Terminology and function have both changed. Only the 911 data shown in the 12000 10000 8000 6000 _. 4000 -" 2000 1- 0 chart above should be a true com- parison. In other words, both sets of data were collected and counted in the same manner. The chart show- ing number of incidents, however, does not show a Erue'comparison. Our recent CADILERMS (computer aided dispatch/law enforcement re- cord management system) upgrade resulted in some terminology changes and some changes in the way the system counts or numbers events. In previous PAPD reports, Quick Calls (actions initiated by Crime Statistics -Analysis The chart on the facing page appears incomplete for a reason. The Port An- geles Police Department has updated their RMS (Records Management Sys- tem) software to NWS LERMS (New World Systems Law Enforcement Re- cords Management System). For several reasons, comparable sta- tistical data from 2009 and 2010 can- not, at this time, be drawn from LERMS. So, no comparison is offered in the chart. The Records Division report, on page 18 of this document offers more infor- mation about our LERMS update proc- ess and some of the difficulties the Department is still working through in thatregard Our new RMS allows PAPD to build queries that can pull data from the RMS. This data can then be collated and used in reports, charts and other documents Thanks to Carla Jacobi for building a query that provided the numbers noted on the facing page. Our hope was that these numbers would allow "near" comparison with crime statistic numbers reported in previous PAPD Reports. No such comparison could be made. You may notice that some crime cate- gory statistics on the facing page (for the first 6 months of 2010) equal or exceed the numbers in the yearly threshold for said category. Please No. Incidents 2009 .1. ___ .....__.....__....,,_._.,1 2010 officers) and Dispatches (requests that are dispatched to an officer for service) were counted and reported separately. Dispatches are now called Incidents. Most activities previously recorded as "Quick Calls" are also now recorded as incidents. The comparison made above was made by combining the number of quick calls and dispatches that oc- curred in the first half of year 2009 and comparing that number to the number of "incidents" recorded in 2010. recall that a threshold is a range of numbers representing "normal" that is calculated from historical data. Theo- retically, if crime statistics fall within the threshold, there is little cause for alarm; however, further evaluation of large swings may still be necessary. In the future, this page will again pro- vide comparisons of crime statistics that are useful for recognizing crime trends. These future comparisons however, will utilize crime data recorded and counted using the new NIBRS report- ing rather than the old Summary re- porting. For that reason, historical comparisons will continue to be a chal- lenge. PAGE 18 2010 MIDYEAR REPORT MIDYEAR REPORT * Records Division Ed Schdke, Administrative Sergeant The Department anticipated that this edition of our report would be vastly different from reports we have offered previ- ously. At the time, we could not anticipate dust how different this report would look. Most of the comparative statistical data (charts, graphs, etc.) that have appeared in previous editions of the Department Report have changed in this report, or will change in future reports. You have by now noted that in this issue, some charts cannot even be completed. There are two primary reasons for these "changes." One reason relates to software problems, the other reason relates to software changes. And, in some cases, the problems overlap. First, I offer a simple take on software problems. As you recall, in January 2010, the Department upgraded its Computer Aided Dispatch (CAD) and its Records Management System (RMS or LERMS). Although the ac- tual upgrade process went very well, as time goes on, we discover more and more "issues" with the software func- tionality that must be resolved. The issues range from processes that work as designed but are unexpected and unproductive, to processes that do not work as designed. In some cases we identify "work-arounds" that allow us to temporarily get by. In other cases, we dust cannot get to where we need to go without a software upgrade from the vendor. Second, I offer my take on software changes. Our new CAD/RMS does not do everything it used to do. And, it does some things differently. For in- stance, our old system tracked "quick calls" separately from "dispatches." The new system counts them together and records them as "incidents" This makes it difficult to measure and dif- ferentiate officers' self -initiated activ- ity from their dispatched activity. With this upgrade, the Department also planned to make the required Records Production- Overview move from UCR Summary Reports to the UCR Incident Based Reporting System - known as NIBRS. This move is required by WASPC to com- ply with new FBI standards. NIBRS counts every crime that occurs in an incident, rather than only the highest ranking crime as in Summary reports. What does that mean? It means our statistical comparisons will be at a new beginning. Our crime statistics, as historically reported in this docu- ment, will look substantially different. Accurate comparisons with historical data will become difficult. The good news is that we will, thanks to our new RMS, eventually comply with WASPC's and the FBI's stan- dards for crime reporting. Not only will we then be providing much more useful crime information to those agencies, we will also be able to pro- vide ourselves and other community agencies with much more useful infor- mation regarding crime and crime victims. 1'4__N*_ v NO Records Process (Task) Mid -year 241 Q Mid -year 2009 Amount of PercentChange Inc/Dee Crime Reports Processed 1810 1794 16 1% Crime Reports Taken (by Records staff) 158 234 -76 -32% Live Scan Transmissions (fingerprints) 102 102 - - Concealed Pistol Licenses 126 170 -44 -26('o Pistol Transfer Applications 159 181 -22 -12°iu Fingerprints - General Public 106 100 6 6% Parking Infractions Entered 938 748 190 25% Traffic Infractions Entered 350 534 484 -34% Public Records Disseminated 785 498 287 58% Transcriptions 49 54 -5 -9% MIDYEAR REPORT 2010 MIDYEAR REPORT PAGE 19 1 Retirement - Looking Back Bruce Knight PAPD Detective --Retired 2009 This submission was written by Detective Bruce Knight, who retired - from the Port Angeles Police Department on April 30, 2010 after more than 30 years of service. Detective Knight has a perspective on policing that in- cludes tours in both rural and urban environments. He experi- enced some dramatic changes in the profession and in society during this time. The experi- ence, skill, and wisdom that he brought to the job are greatly appreciated and he will be sorely missed by the department and all those in the community he served. I started duty as a peace officer in March 1979. Prior to that, I worked private security catching shoplifters and shaking doorknobs. Back in 1979 we were still experiencing anti- police feelings left over from the Vietnam War demonstrations. Soci- ety has gone through several cycles of expecting too much from law en- forcement officers and returning very little in the way of respect or salary. We currently have a very strong polarization with some very strong supporters and some very overt enemies. My research suggests that every day in the United States there are 6 officer -involved shootings with 40% of those shootings involving a fatal- ity. This year, patterns suggest that 54 officers will be shot and killed in the United States and 800 suspects will be shot. Despite all the changes in law en- forcement over the years the domes- tic violence call remains one of the most dangerous. When I started, we didn't have a domestic violence law and each officer mediated or ar- rested according to his own discre- tion. That all changed in 1984 when the new law mandated an arrest. This helped some social issues but did violence to the soul of the officer who lustorically doesn't like to make an arrest unless the officer is sure that justice is being served. In those days we used the breatha- lyzer for DWI arrests and the fine was $304. Everyone pled guilty. Later we started calling it DUI and the fine and penalties went into the thousands of dollars plus jail time. The results were that people started pleading not guilty and defense at- torneys were kept busy. Until 1982 Washington State didn't have a felony elude statue. If a vio- lator fled from police, and managed to avoid killing someone, he was only charged with a misdemeanor. That is quite different from today's environment where the US Su- preme Court recently ruled that deadly force may be justified in stopping a fleeing vehicle. At the beginning of my career most officers carried .38 special revolvers and we were authorized to shoot at any fleeing felon. Now we carry semi-automatic .40 caliber pistols and abide by strict rules pertaining to shooting at fleeing felons. Officers of today face a more rigor- ous background check, and the ba- sic training is twice as long, having been increased from 13 weeks to 26 weeks. Standards of discipline are more rigid today as well. One thing that has remained constant is the officers' zeal to do an outstanding job in protecting the citizens. It re- mains true today, as stated years ago by George Orwell, "We sleep safely in our beds because rough men stand ready in the night to visit violence upon those who would do us harm." • PAGE 20 2010 MIDYEAR REPORT MIDYEAR REPORT Police Volunteers C •voluKteers AovA Oct pai-A, Kot because thgre worthless, but because thed-re pwceless.---sherrd AKdersoK t oay. m other aKswer nwlee, but, thaKles, awa( thawles.---bV'�U W VK shakzespeare Jim Walsh - 322 hrs Marilyn Walsh - 303.5 hrs Russ Fish - 512 hours Six volunteers have already served more than 200 hours in 2010 The persons at the top of the list of hours served in 2010 are pictured above volu.Kteers do Kot KecessarUo have the eLMe; then just have the heart.---EUzabetk AKArew Total 1 st half SERVICE PROVIDED 2009 2010 hours Hours Events 909.5 432.5 Meetings 277.0 111 Radar/speed watch 1112.0 506 Vacation home checks 105.0 47 Bank run for Finance Department 337.0 161 Day/night patrols 425.0 138 Sex Offender notifications 50.0 30 Other details 676.0 421.5 Volunteer training 281.5 173.5 Admin - Office and Records Assistance 894.0 398.5 TOTAL VOLUNTEER HOURS 5164.0 2419 Estimated dollar value (nationally) of Volunteer time in 2009 $20,85 (IndependentSector.org) Estimated Dollar Value of $50, 436.15 Service to Community 0 • • C I * Pura'. --I K9 Offic-T9 OPNET Off M I I "! 1:1 11 Ell I Dcv,v,win Resource Off �Zer Feles Police Department `�t ,jurganizational Chart Par =12 Iforcrml M y xlpwrt stf't,Ces Tr dim a an Vdwnf-ers Cnn,L- UM, WIT"11ITTM, T 77m Oil znf,InxM-,.qr I D- T- aich I Fu t, E MIS D --patch Wotecnara O:.de.-s I PAGE 22 2010 MIDYEAR REPORT MIDYEAR REPORT . Police Administration MIDYEAR REPORT 2010 MIDYEAR REPORT Corporal Detective (... -t-d) Jason Viada Bruce Knight K-9 Detective Downtown Resource Officer Jag Kevin Spencer Duane Benedict Detective Tom Kuch K-9 Kilo PAGE 23 M - 28 • • PAGE 24 2010 MIDYEAR REPORT MIDYEAR REPORT Communications PenCom .#.. Supervisor Karl Hatton Officer Cindy Johnson E Officer Rick Crabb Officer Karen Roedell Officer Deb Homan Officer Ryan Van Gordon Officer Miles Carignan Officer JoElle Munger Officer Mary Rife Officer Karen Rushton Warrants/Orders Clerk Jodi Simmons Officer Officer Vikki German Marilyn Sheats M-291 PORT ANGELES POLICE 321 East Fifth Street Port Angeles, WA 98362 Phone: 360.452 4545 Fax: 360 417.4537 Email- police@atyofpa.us To Serve and Protect F�;, •�AFF5-1 ';? _' '.sus f' ', ,Yh . ;�✓,ka Yj ' F ;:31 L-7. 0'1 .n ,W4 - bt t ✓ • ^ ;.y x App 1 1u� h tvl ina g eIT', Mission Statement In partnership with our community, the Port Angeles Police Department recognizes its mission to serve in a compassion- ate, courteous, and professional manner, to promote freedom and peace of mind, pride in our neighborhoods, and the safety of our families. M-30