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HomeMy WebLinkAboutAgenda Packet 09/15/1998 AGENDA PORT ANGELES CITY COUNCIL 321 EAST FIFTH STREET, PORT ANGELES, W ASlDNGTON September 15, 1998 - REGULAR MEETING - 5:30 p.m. AGENDA ITEM First Action ? Action Taken Page A. CALL TO ORDER - Regular Meeting (5:30 p.m.) B. ROLL CALL C. PLEDGE OF ALLEGIANCE D. CEREMONIAL MA TTERS/PROCLAMA TIONS Proclamation recognizing October 4 - 10, 1998, 2 Read as Public Power Week E. WORK SESSION None F. LATE ITEMS TO BE PLACED ON TillS OR FUTURE AGENDAS (By Council, Staff or Public) AND PUBLIC COMMENT FOR ITEMS NOT ON AGENDA (This is the opportunity for members of the public to speak to the City Council about anything not on the agenda, please keep comments to 5-10 minutes.) G. FINANCE 1. Bid award for Solid Waste Packer Truck 4 Action 2. Payment to W oodhaven Homeowners 6 Action Association for LID 215 Pavement Restoration H. CONSENT AGENDA 1. City Council minutes of September 1, 1998 8 Action 2. Planning Commission minutes of August 12 16 3. Check List - Sept. 9, 1998 - $810,739.69 24 I. CITY COUNCIL COMMITTEE REPORTS J. ORDINANCES NOT REQUIRING PUBLIC HEARINGS Ordinance approving the sale of 40 Action WaterIWastewater Refunding Bonds K. RESOLUTIONS NOT REQUIRING PUBLIC HEARINGS Resolution approving DNR ALEA Grant 130 Action Application NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE i MAYOR TO DETERMINE TIME OF BREAK September 15, 1998 Port Angeles City Council Meeting Page - I AGENDA ITEM First Action ? Action Taken Page L. OTHER CONSIDERATIONS Surrender of FERC License for Morse Creek 134 Action M. PUBLIC HEARING-QUASI-JUDICIAL None (7:00 P.M. or soon thereafter): N. PUBLIC HEARINGS - OTHER None O. INFORMATION 1. City Manager's Report (Page 136) 2. Chamber of Commerce Visitor Center Report - June & July, 1998 (Page 138) P. EXECUTIVE SESSION (As needed and determined by City Attorney): Q. ADJOURNMENT Action . ...... . PUBLIC.HEARINGS Public hearings are set by the City Council in order to meet legal requirements pertaining to matters such as, land use permit applications, proposed amendments to City land use regulations, zoning changes, annexations. In addition, the City Council may set a public hearing in order to receive public input prior to making decisions which impact the citizens. Certain matters may be controversial, and the City Council may choose to seek public opinion through the public hearing process. .. . G: \EXCHANGE\CNCLPKT\CTYMGR\CC091598.AGN NOTE: HEARING DEVICES AVAILABLE FOR THOSE NEEDING ASSISTANCE MAYOR TO DETERMINE TIME OF BREAK September 15, 1998 Port Angeles City Council Meeting Page - 2 L CITY OF PORT ANGELES CITY COUNCIL MEETING September 15, 1998 v. PLEDGE OF ALLEGIANCE: Led by: '~~. ~n~(1o~ CITY OF PORT ANGELES CITY COUNCIL MEETING Attendance Roster ~ DATE OF MEETING: September 15.1998 LOCATION: City Council Chambers L ez t:l LEE I~ City of Port Angeles Ordinance/Resolution Distribution List City Council Meeting of 0 Q.. p-. I ,., , I qq L II Vl;.d Lat ~ .....- ~.~/. qg '",' IT JT "ll\.f Ii' \1..1 / \,J"\Af .. , - ~fV'l. /I A .A ..L 1')J..(b.L\ J City Manager / : City Attv. (1) , ./ I Planning City Clerk ;; ~ ./ ~~ Deputy Clerk J 7 , Personnel Cust. Svcs. / Finance Dir./Mgr. J / Police Dept. Fire Dept. Light Dept. / Pub. Works (2) ~.; Parks & Rec. d / MRSC (1) I /' , PDN (Swnmarv) hJ I'V\M. J r Extra Copies c4-; 0 n Iv' II TOTAL C/ ,..., DATE: To: FROM: SUBJECT: D no. .Rr\T.I~ AN 1i rG........:E:~iL..... .E;.:iSf. 1~ . - . 11: .. . .........1. WAS H I N G TON, U. S. A. CITY COUNCIL MEMO September 15,1998 MA YOR BRAUN AND CITY COUNCIL Jack Pittis, Public Works & Utilities Director Public Power Week Proclamation SUMMARY: Port Angeles City Light is one of almost 2,000 publicly owned electric utilities across the nation. In support of public power and the benefits it provides to its customers, the attached proclamation designates the week of October 4-10, 1998 as Public Power Week. RECOMMENDATION: Staff recommends that the Mavor issue the attached proclamation. ISSUE: Should the Mayor issue a proclamation recognizing the benefits of public power and designating the week of October 4-10, 1998 as Public Power Week? BACKGROUND / ANALYSIS: Since 1987, the American Public Power Association has been encouraging communities that are served by public power utilities to celebrate the benefits of public power by designating the first week of October as Public Power Week. City Light has been providing low rates and quality service since 1893 and is the fourth oldest municipal electric utility on the west coast. Today almost 10,000 customers are served with sales of over $16 million and a work force of 32 full time employees. The attached proclamation extols the many benefits of public power and in particular the role that the utility plays in making Port Angeles a better place to live and work. . Attachment: Proclamation 02 ~ "t:" r -- .. '" '- ~ ~ PROCLAMATION PUBLIC POWER WEEK OCTOBER 4 - 10, 1998 WHEREAS, we the citizens of Port Angeles have chosen to operate a community-owned locally controlled, not-for-profit electric utility; and WHEREAS, we are both consumers and owners of our electric utility and have a direct say in utility operations and policies; and WHEREAS, Port Angeles City Light provides our homes, businesses, social service, and local government agencies with reliable, efficient, and cost-effective electricity employing sound business practices designed to ensure the best possible service at not-for-profit rates, and WHEREAS, Port Angeles City Light is a valuable community asset that cont~ibutes substantially to the well-being of local citizens through energy efficiency, customer service, environmental protection, economic development, and safety awareness, and WHEREAS, Port Angeles is part of a community of about 2,000 public power systems in the United States that through consumer-ownership ensure cost-cutting competition in the electric utility industry to the benefit of electricity consumers everywhere, and WHEREAS, the American Public Power Association initiated Public Power Week in 1987, and it has proven to be a highly successful means to educate this community's consumers and the general public about public power's public service mission and community betterment goals, and WHEREAS, it is crucial to our local economy that our community understand the value of our public power system, especially during this time when deregulation and competition in the electric utility industry will make it even more important for us to make our customers aware of all of the benefits we provide to our community. NOW, THEREFORE BE IT RESOLVED: that the week of October 4-10, 1998 be designated the twelfth annual Public Power Week in order to honor Port Angeles City Light, its consumer-owners, policy makers, and employees who work together to provide the best possible electric service to our community, and BE IT FURTHER RESOLVED: that our community join hands with other public powe~ communities across the nation and celebrate the public benefits of public power for our local and national progress. " September 15. 1998 Gary Braun, Mayor ~ .J 'V2 I f i I ~!"'" '0'" R'Ti''PJ.'NrGfiEi i'L' EilSrf . r.j "l.J, ',;' ;". . ,>' j i I ~.' f"; i. - f f ! "I ~; ,l "" .J.., ... ' ',' .. ',) : ~ ., C.' ...- . WAS H I N G TON, U. S. A. CITY COUNCIL MEMO DATE: September 15, 1998 To: MA YOR BRAUN AND CITY COUNCIL FROM: Jack Pittis, Director of Public Works and Utilities SUBJECT: Bid Award for Solid Waste Refuse Collection Truck. SUMMARY: Bids for the Solid Waste Refuse Collection Truck were opened on August 25, 1998. Western Peterbilt, Inc., submitted the only bid. The bid included a 1999 Peterbilt truck with options for two different body styles. 1) The lower priced option was for a New Way Automated Side Loader body that does not meet the minimum specifications. 2) The higher priced option was for a Heil-Rapid Rail Automated Side Loader Body that does meet all the specifications. Staff was able to delete several items which brought the total for the conforming vehicle down to $156,234.75 including tax and trade-in. RECOMMENDATION: Staff recommends that City Council 1) reject the bid from Western Peterbilt, Inc. for the New Way Automated Side Loader as not meeting the minimum specifications and 2) accept the bid from Western Peterbilt Inc., for the Heil-Rapid Rail Automated Side Loader in the amount of $156,234.75 includine tax and trade-in. ISSUE: Should the City Council accept a bid for the Solid Waste Refuse Collection Truck? BACKGROUND / ANALYSIS: In 1997 the City Council considered the replacement of the oldest refuse packer truck but delayed the decision until 1998. The refuse packer being replaced is a 1984 International truck with Heil-Rapid Rail Automated Side Loader Body [#1904], which was purchased for $90,750. This truck has been used as the backup truck since 1993 when it was rotated from an everyday-use truck. It has 140,917 miles of use and is currently out of service due to equipment failure. Staff has chosen not to repair the unit as repair costs would not be retrieved upon trade- in. The Solid Waste Collection fleet is composed ofthree everyday-use trucks and one back-up truck. Upon receipt of the new truck the current back-up truck, #1904, would be traded-in and the next oldest vehicle in the fleet, #1905-1989 Peterbilt with Heil-Rapid Rail Automated Side Loader, will be place in the back-up position. The vehicle descriptions and mileage are shown below: :Irud: Mileage I.lsage #1904-1984 International wi Heil-Rapid Rail Automated Side Loader #1905-1989 Peterbi1t wi Heil-Rapid Rail Automated Side Loader #1907 1992 Peterbilt wi Heil-Rapid Rail Automated Side Loader #1911-1993 Peterbilt wi Heil-Rapid Rail Automated Side Loader New Truck 140,917 87,385 77,013 45,465 min. Current back-up, now parked Everyday use, next back-up Everyday use Everyday use Everyday use upon delivery 04 September 15, 1998 Bid Award for Solid Waste Refuse Collection Truck Page 2 The City Council budgeted $156,000 for replacement in 1998 and on July 8th authorized a call for bids for a new Solid Waste Refuse Collection Truck. Bids were opened on August 25, 1998 and analyzed by the Equipment Services and Solid Waste Divisions. Western Peterbilt, Inc. submitted the only bid. The bid included a 1999 Peterbilt truck and proposed two different body styles. . Alternate 1 is for a New Way Automated Side Loader Body for a total cost of $155,637.47 including tax, and a $1,200.00 trade-in credit. . Alternate 2 is for a Heil- Rapid Rail Automated Side Loader Body for a total cost of$163,494.30 including tax, and a $2,000.00 trade-in credit. The New Way body does not meet the minimum equipment specifications, because it uses air over hydraulic controls. The bid for the Heil-Rapid Rail body meets all of the specifications and is the same body type that is on all three collection vehicles in the City's fleet. Staff has discussed the following items with the vendor that will result in a reduced cost of the vehicle: . Delete chassis lube system for a reduction of$3,862.00. . Delete body stripes for reduction of$1,195.00. . Delete Sony camera for reduction of $1,940.00. (Camera will be installed by Equipment Services). . Sales tax on the above items reduced by $562.55. . $300.00 increase for an extended warranty of 5 years or 200,000 miles. The total adjusted cost of the vehicle with the Heil-Rapid Rail Automated Side Loader Body as revised above is $156,234.75, including tax and trade-in. The estimated delivery time for the new truck is approximately six months. 05, DATE: To: FROM: SUBJECT: /" '7 L""':5, C'\, F'.'..'~" '0"'" R'.' T' '~'.. ..N.. .'. 1 j. .: _,J 1 I' / --. ; ",. -'!) ~ ,,' ,,,.,.,~ . - . " . , ELE;S WAS H I N G TON, U. S. A. CITY COUNCIL MEMO September 15, 1998 MA YOR BRAUN AND CITY COUNCIL Jack Pittis, Director of Public Works and Utilities Payment to W oodhaven Lane Homeowner's Association for LID 215 Pavement Restoration. SUMMARY: During LID (Local Improvement District) 215 sewer construction, asphalt pavement was removed and/or damaged on a private street named Woodhaven Lane. Conditions of the easement for construction required that damaged improvements be replaced in a condition equal to that prior to construction. In lieu of this restoration, the Homeowners Association has agreed to accept payment for the estimated cost ofthe restoration and be responsible for the completion of the roadway repairs when private home construction activities in the area are completed. RECOMMENDATION: City Council approve by motion the payment of $15,000 plus sales tax ($16,185.00 total) to the Woodhaven Lane Homeowner's Association for pavement restoration. ISSUE: Should Council authorize payment to Woodhaven Lane Homeowners Association for pavement repairs associated with LID 215 construction? BACKGROUND / ANALYSIS: During construction of the sewer for LID 215, it was necessary to operate heavy equipment on and remove pavement along Woodhaven Lane, which is a private street. The easement for the construction contained language that any improvements damaged during construction "--- will be replaced in as good a condition as they were immediately before the property was entered upon by the City of Port Angeles." A representative of the Homeowner's Association agreed that the project would be reviewed following construction to determine if the restoration was adequate. As a part of the contractor's work, road crossings and damaged areas were patched. During the inspection review with the Homeowner's Association representative additional damaged pavement was noted and the patching was not aesthetically pleasing. In addition, only a portion of the damage could be attributed to the City's sewer project because of the age of the pavement and the fact that other construction was occurring in the area. Photos prior to construction were reviewed and the paving subcontractor quoted a price of $30,000 to complete a thin asphalt overlay over all ofWoodhaven Lane. Following this review, staff discussed a settlement involving the City paying 50% [$15,000 plus tax] of the overlay costs to the Homeowners Association if they would be responsible for making the repairs after the private home construction and other planned street maintenance activities are completed in September. This solution to the restoration of Woodhaven Lane has been discussed with the City's contractor who has no objections. The City Attorney will prepare an appropriate release and acceptance of payment for the Homeowner's Association to sign. ~,.V,6 ~,. 4'- (rt. CALL TO ORDER- REGULAR MEETING: ROLL CALL: WORK SESSION: Joint Meeting with Lower Elwha Tribal Council CITY COUNCIL MEETING Port Angeles, Washington September 1, 1998 Mayor BralUl called the regular meeting of the Port Angeles City Council to order at 5:35 p.m. Members Present: Mayor Braun, Councilmembers Campbell, Doyle, Hulett [arrived at 6:50 p.m.], McKeown, Wiggins, and Williams. Members Absent: None. Staff Present: Manager Ibarra, Attorney Knutson, Clerk Upton, B. Becker, S. Brodhun, B. Collins, K. Godbey, and 1. Pittis. Public Present: C. Owens, 1. Lee, T. Saar, T. Schmid, N. Van Sickle, M. Pearson, M. Wegmann, D. Schmid, and 1. Bohman. Joint Meeting with Lower Elwha Tribal Council: The members of the City Council joined the members of the Lower Elwha Tribal Council for a work session held in the Carver Conference Room of the Port Angeles Library. Present on behalf of the Lower Elwha Tribal Council. were Chairman Russell Hepfer, Vice-Chairman Frances Charles, COlUlcilmember Dennis Sullivan, Secretary-Treasurer Georgianne Charles, Attorney Russ Busch, and staff representative Carol Brown. Mayor Braun welcomed everyone to the meeting, noting the importance of establishing a rapport between the two governing bodies. After introductions of all those present, the Mayor presented to the members of the Lower Elwha Tribal Council a copy of a letter sent by the City to Senators Gorton and Murray and Congressman Dicks regarding salmon funding and Elwha River dam removal. Russell Hepfer welcomed the opportunity to have this meeting, as he was certain that a meeting of this type had never been held between the Tribal Council and the City Council. Mayor Braun agreed and emphasized the future opportunities for the two groups to work together on common goals. - An informal exchange of information followed, with discussions held concerning the makeup and election process of the two governing bodies, the possible involvement of City and County government in intertribal meetings relating to youth issues, and the possible involvement of officials in multi-ethnic meetings held at the School District. Also discussed was the desire of the Tribal Council to have the Lower Elwha Tribe included in publications relating to tourism opportunities on the North Olympic Peninsula. It was suggested that Erl Hansen, Chamber of Commerce, and Rick Hert, North Olympic Peninsula Visitor & Convention Bureau, be contacted by the Tribal Council for inclusion in brochures, pamphlets, and the like. It was noted that the City Council may be of assistance in providing an entre' with the two agencies. Further discussion followed with regard to Tribal efforts toward creating a walking trail for the public, possible interest on the part of the public to tour the Tribe's fish hatchery, social - I - as " CITY COUNCIL MEETING September 1, 1998 Joint Meeting with Lower Elwha Tribal COlmcil (Cont'd) PLEDGE OF ALLEGIANCE: CEREMONIAL MATTERS PROCLAMATIONS: LATE ITEMS TO BE PLACED ON TIllS OR FUTURE AGENDAS: services offered by the Tribe, law enforcement programs presently being enhanced by the Tribe, and current housing programs on Tribal property. In conclusion, Mayor Braun assured the members of the Tribal Council that the City is desirous of continuing this type of dialogue. To that end, Councilman Campbell queried as to the City Council's intent to meet with the Tribal Council on a quarterly basis. The members of the City Council and the Tribal Council agreed to participate in those meetings as suggested. The work session was concluded at 6:20 p.m., at which time the City Council members departed for City Hall to continue with the remainder of the Council agenda. The Pledge of Allegiance to the Flag was led by Mayor Braun. Recognizing "Good Neighbor Day": Mr. Todd Holm, who was to make a presentation this evening regarding '~Good Neighbor Day", was unable to attend. Chuck Owens, Joyce, Washington, reminded the Council that he had asked for a discussion of the Makah whaling issue at this particular Council meeting and was told by Councilman Campbell that this was not within the Council's purview. Mr. Owens felt the matter was, in fact, within Council's purview. He distributed documentation from the National Marine Fisheries regarding the number of strikes allowed in a whale hunt while, at the same time, he placed a box of 41 miniature plastic whales on the dais to make a point as to how many whales could conceivably be injured during a hunt. Mr. Owens felt the City's work crew would be hauling whale carcasses off the beach. Mr. Owens again asked the Council to place this issue on its next agenda and denounce the action of the Makah people. Councilmember McKeown stated she was opposed to one municipality remarking against another jurisdibtion. This issue is between the Makah's and the Federal Government; as a Council member she could not support sending a letter of objection. Mr. Owens stressed that the whale hunt would impact the citizens of Port Angeles; therefore, the City Council should take a stand. Mayor Braun thanked Mr. Owens for his time'! Dorothy Duncan, 921 S. Washington Street, Chair of the Taxpayers for the Clallam Crisis Center, addressed the Council on the need for a crisis center in Port Angeles. Ms. Duncan distributed a description of the crisis center, noting the need for the distribution of more information on this issue to the public. Ms. Duncan felt this proposition was very important to the County and its citizens. Discussion followed, and Councilman Wiggins asked if the center would be used basically for detoxification or if it would really be used as a mental health crisis center. Ms. Duncan stated it was not intended to be a treatment facility, but to stabilize people during the first 72-hours of the crisis whether it be for a drinking or mental health problem. Councilman Campbell commended Ms. Duncan and her associates for the work and leadership they have provided in educating the community regarding the need for this facility. Ms. Duncan responded to questions directed by the Council. PUBLIC HEARINGS - None. QUASI-JUDICIAL: PUBLIC HEARINGS - OTHER: A. Municipal Code Amendment - MCA 98-04 - City of Port Angeles, City-wide: proposal to amend the City's Municipal Code with respect to the installation of aboveground flammable liquid storage tanks 09" - 2 - Municipal Code Amendment Ordinance No. 2999 FINANCE: Downtown Watermain and Sidewalk Project CONSENT AGENDA: COMMITTEE REPORTS: Street Vacations Clallam Transit Public Health CITY COUNCIL MEETING September 1, 1998 Mayor Braun reviewed the information provided by the Planning Department and asked Director Collins for additional input Director Collins pointed out several corrections that had been made to the original ordinance document, all of which did not substantively impact the intent Mayor Braun opened the public hearing at 7:13 p.m. There was no public testimony; therefore, Mayor Braun closed the public hearing at 7: 13 p.m. and read the Ordinance by title, entitled ORDINANCE NO. 2999 AN ORDINANCE of the City of Port Angeles amending Fire Code and Zoning Code regulations for aboveground storage of flammable liquids amending Chapters 14.21,17.08, and 17.34 of the Port Angeles Municipal Code. Councilman Wiggins moved to adopt the Ordinance as read by title, citing the changes noted and Findings 1 - 8 and Conclusions A - E as set forth in Exhibit "A", which is attached to and becomes a part of these minutes. Councilmember McKeown seconded the motion. Discussion followed, and Councilman Doyle asked about the intent of the Ordinance to which Director Collins responded. A vote was taken on the motion, which carried unanimously. A. Acceptance of Downtown Watennain and Sidewalk Replacement Project Mayor Braun reviewed the information provided by the Public Works Department and asked Director Pittis for further input. Director Pittis reviewed the cost overrun summary and explained how and why cost overruns occur. He stated that, while it was regrettable to have ovemms, the City has a completed project of which it can be proud. Director Pittis then responded to questions directed by the Council. Discussion followed regarding other downtown projects, such as pavers on Front Street, and how these projects would be funded. Maii~ger Ibarra explamed that, as part of the 1999 budget process, the Capital Facilities Plan would be revisited. Following further discussion and commendations from Councilman Campbell regarding the success ofthis project, Councilmember McKeown moved.to accept the project, authorize fmal payment to Strider Construction, Inc. in the amount of $170,246.90 and release retain age in the amount of $121,789.50 upon receipt of clearances from the Departments of Revenue and Labor & Industries and the satisfaction of any claims received by the City resulting from execution of the contract. Councilman CampbeU seconded the motion, which ca'rried unanimously. Councilmembers McKeown and Wiggins stated they would abstain from voting on the minutes due to their absence from that meeting. Councilman Hulett moved to accept the Consent Agenda including: A) Approval of Minutes of August 18, 1998, Regular Meeting; B) Out of State Travel- Public Works & Utilities; C) Payroll - August 23, 1998 - $371,373.41; D) CheckList - August 26,1998 - $339,556.26. Councilman CampbeU seconded the motion, which carried unanimously. I Councilman Doyle had no report; however, he pointed out that each Council member had received a fmal copy of procedures for street vacations. Councilman Williams stated he attended a very informative State Conference in Tacoma in which the Clallam Transit had participated. Councilman Wiggins stated the Public Health area has been active, and he is involved in discussions regarding teenage pregnancies. A report will be presented to the Public Health 1Q - 3 - CITY COUNCIL MEETING September 1, 1998 COMMITTEE REPORTS: (Cont'd) Opportunity Fund Port Angeles Works! K-Mart Closing Gambling Tax Post - 2001 Power Purchases from BP A Resolution No. 20-98 Denial of Rite Aid Rezone and Street Vacation Committee on September 8, 1998. Councilman Wiggins has also been involved in the Opportunity Fund, along with Manager Ibarra. The cities involved will make a presentatIon to the County Comssioners. Councilman Campbell reported the Port Angeles Works! Committee held a meeting regarding the highest and best use study for the Rayonier site. The consultants have researched all types of businesses appropriate to this site and have considered the economic feasibilities. Copies of this information will be forwarded to the City. Rayonier has been very cooperative in this endeavor. Mayor Braun referred to the letter Council received from K-Mart stating its store would close on October 28, 1998. Also, Council had received a letter from Dave DeLaney, President of the Port Angeles Pub, Tavern, and Lounge Association, regarding gambling tax. Mayor Braun stated he would pass this letter on to the City Manager. A committee of council members has been working on the gambling tax issue. Ordinances Not Requiring Public Hearings: None. Resolutions Not Requiring Public Hearings: Authority for Post-2001 Power Purchases from BPA Mayor Braun reviewed the information provided by the Public Works Department, and Director Pittis provided additional input. Discussion followed, and Director Pittis noted that the City must try to preserve its priority right to federal power from Bonneville once the current contract expires in 200 1. The resolution and letter of transmittal would be sent to BP A, if approved by Council, at an appropriate time during discussions with BP A on public power preferences. Councilman Campbell felt the City's priority right could only be removed by Congress, and he asked if th~ftS ~aS legislation proposed toward this end. Director Pittis responded in the negative; however, the Western Public Agencies Group (WPAG) is concerned that Bonneville is developing strategy whereby it can sell preferred power at a different rate that would be much higher. Mayor Braun read the Resolution by title, entitled. RESOLUTION NO. 20-98 A RESOLUTION of the City of Port Angeles directing the City Manager to initiate with the Bonneville Power Administration the process of entering into a long term power supply contract. Councilman Doyle moved to pass the Resolution as read by title. Councilman Campbell seconded the motion. Following brief discussion, a vote was taken'on the motion, which carried unanimously. Other Considerations A. Findings & Conclusions for Denial of Rite Aid Rezone and Street Vacation Mayor Braun and Councilman Williams stepped down from this issue due to appearance offairness. Therefore, Deputy Mayor Doyle accepted chairmanship of this portion of the meeting. He reviewed the information provided by the Planning Department. 11 -4- Denial of Rite Aid Rezone and Street Vacation (Cont'd) Break Doug Wood Easement to City for Trail Purposes Housing Rehabilitation Program Phase IV \ CITY COUNCIL MEETING September 1, 1998 Councilmember McKeown moved to deny Northwest Permit Applications REZ 98- 03, citing Findings 1 - 20 an~Conclusions A - E, as set forth in Exhibit "B" which is attached to and becomes Ii part of these minutes. Councilman Hulett seconded the motion. Discussion followed regarding Conclusion C, and Councilman Wiggins suggested the wording be changed to "stUTOtl:1'lding adiacent residential zoning and land uses". Deputy Mayor Doyle also felt Conclusion D should be changed to read, "...rezone wiH would likely result in an increase in commercial activity...". Councilmember McKeown, as maker of the motion, and Councilman Hulett as seconder agreed to the amendment. A vote was taken on the motion, which carried by a majority vote, with Mayor Braun and Councilman Williams abstaining. Councilman Hulett moved to deny ~orthwest Permit Application STV 98-01, citing Findings 1 - 11 and Conclusions A - D, as set forth in Exhibit "C" which is attached to and becomes a part of these minutes. Councilman Wiggins seconded the motion, which carried by a majority vote, with Mayor Braun and Councilman Williams abstaining. The meeting was recessed for a break at 8:03 p.m. The meeting reconvened at 8: 15 p.m. B. Doug Wood Easement to City for Trail Purposes Mayor Braun reviewed the infonnation provided by the Parks and Recreation Department. Director Brodhun indicated it was not necessary for the Mayor to sign the easement, rather Council could vote to accept the easement. Director Brodhun noted that Jeff Bohman, Acting Chair of the Peninsula Trails Coalition, was present in the audience and would like to say a few words. Jeff Bohman, 3753 Canyon Circle, Vice Chair of the Peninsula Trails Coalition, expressed appreciation and admiration for the work staff and Council have done in regards to the trail. Mr. Bohman stated that the easement given by Mr. & Mrs. Wood provides more than the area necessary to build the ramp structure for access to the eastern side of the trestle. It also affords aifditi6iialland between Strait View Drive and Morse Creek which will allow for a small park. At Mayor Braun's request, Mr. Bohman explained that Jefferson County has recently opened its first section of the Trail. It is five miles, running west from Port Townsend and is referred to as the Lany Scott Memorial Park. Mr. Bohman then described the route of this trail and the future plans for that trail. Discussion followed, and Director Brodhun responded to questions and provided clarification. Councilman Doyle moved to accept the easement from Douglas Band Ann K. Wood. Councilman Williams seconded the motion, which carried unanimously. Councilman Wiggins felt a letter of thanks should be sent to Mr. & Mrs. Wood. C. Agreement with Clal/am-Jefferson Community Action Council for SelVices for Housing Rehabilitation Program Phase IV Mayor Braun reviewed the infonnation provided by the Public Works Department, and Director Pittis stated Community Action has administered this program during the first three phases and has done an excellent job. He stated representatives from Community Action were present should the Council have any questions. Martin Rowe of Community Action, 106 N. Lincoln Street, responded to questions and thanked the Council and stafffortheir support which enabled this program to be a success. Approximately 80% of the people who received loans and assistance are disabled or elderly. Councilman Campbell moved to approve the contract with Clallam-Jefferson Community Action Council for services to implement Phase IV of the Port Angeles (~ - 5 - 12 CITY COUNCIL MEETING September 1, 1998 Housing Rehabilitation Program Phase IV (Cont'd) FERC License (', ADJOURN TO EXECUTIVE SESSION: RETURN TO OPEN SESSION: Housing Rehabilitation Program. Councilmember McKeown seconded the motion, which carried unanimously. D. Surrender of FERC License for Morse Creek Mayor Braun reviewed the information provided by the Public Works Department and stated Director Pittis was prepared to give a presentation on this issue. Using a map, Director Pittis demonstrated the location of the pipeline installed for the Morse Creek water project. Due to the age of the pipeline and the contours of the land, there were problems with this pipeline. There is a leak in the pipeline, and FERC has ordered the City to repair it by September 20th at an estimated cost of $25,000. Staff is concerned with the integrity of the pipeline, as there can be leaks in the pipeline in the future. Director Pittis indicated there are many considerations regarding the surrender of the license. The annual operating costs are $13,000 more than the revenues from this project; if the City gives up its FERC license, it will never get it back. Should the City decide to keep the license, there is a commitment to FERC to make the necessary repairs. Staff estimates it would cost $1.3 million to line the pipeline with high density, polyethylene pipe which would reduce the likelihood that it would not break in the foreseeable future. Director Pittis then explained the process for surrendering the license. Discussion followed, and Director Pittis responded to questions and provided further clarification. Councilmember McKeown and Councilman Wiggins expressed concern with the possibility of surrendering the license only to learn that it may be needed again in the fu~e. Director Pittis reminded the Council that during the license surrender process, if it is discovered that the mitigation costs are too steep, there is an opportunity to proceed with pipeline repairs and retainage of the license. After further discussion, Manager Ibarra suggested that staff request written confirmation from FERC as to the mitigating costs of surrendering the license and whether the license could, in fact, be retained should the City decide that to be the appropriate action. This issue could then be readdressed at the next Council meeting. Discussion continued, and Director Pittis responded to further questions regarding the City's retention of its water rights. Attorney Knutson explained that Tom Pors, the City's water rights attorney, has advised staff on the Morse Creek water rights issue relating to surrendering the FERC license. The Department of Ecology will be asked to modify the water right, which would allow usage of the water for domestic purposes as a back-up water supply source. However, the water would need to be treated, which is why the City does not use it as a water source now. Councilman Williams expressed concern over giving up resources such as power generation and water. He felt if surrendering the license could not be reversed, he would vote against it. Councilman Campbell felt this should be separated into two issues, the water and the power.' He admitted to being biased against hydro projects of this size, as they are uneconomical. He felt the City should focus on retaining its water rights and opposing unreasonable measures imposed by federal agencies. It was the general consensus of the Council that staff should attempt to get a written answer from FERC and discuss this issue again at the next regular meeting. The meeting adjourned to Executive Session at 9:20 p.m. to discuss litigation and potential litigation for 15-20 minutes. The meeting returned to Open Session at 9:40 p.m. 13 -6- INFORMATION: A WC Regional Meeting EDC 2020 Meeting Opportunity Fund Oak Street Property Consent Agenda Changes Utility Advisory Committee Presentation to City Clerk Reception for City Manager Visit from Mayor ofMutsu City ADJOURNMENT: CITY COUNCIL MEETING September 1, 1998 City Manager's Report Manager Ibarra noted the AssocIation of Washington Cities Regional Meeting will be held Thursday, October 1, 1998, at 6 :00 p.m. in Bremerton. All Council members are invited. The Economic Development COllllCil (EDC) is holding its next 2020 meeting on Thursday, September 17, 1998, from 2:00 p.m. to 4:00 p.m. at the Transit facility. Manager Ibarra encouraged the COWlcil to attend. .. The EDC' s funding for next year will be discussed, and structure and services received from the EDC will be revisited. Manager Ibarra gave an update on the Opportunity FWld, which will be considered at the EDC Executive Board meeting on Friday, September 4, 1998, at 9:00 a.m. Council was encouraged to attend. Report on Oak Street Property Manager Ibarra reviewed the City's role in the development of the Oak Street property. It is recommended the City act as lead agency for the development of this property; there would be no cost to the City except for staff time. Manager Ibarra felt this was a positive step, and he was pleased to report that interest in the property has already been expressed by one party. It was the general consensus of the Council that the City should proceed as the lead agency in marketing and developing the Oak Street property. Recommended Changes to Consent Agenda Director Godbey explained the proposed changes to the Consent Agenda which are being offered in an effort to streamline the information presented to the Council. Those changes included submitting the check register on a monthly basis and deleting the payroll information. Discussion followed, and COWlcil agreed to these changes. Utility Advisory Committee Manager Ib~ainformed the,CoWlcil that the UAC has rescheduled its meeting from September 1~, 1998, to Septemoer 21,1998. The Solid Waste User Fee Analysis will be discussed at that meeting. Following brief discussion, it was agreed to meet at 9:00 a.m. for that meeting. Presentation to Clerk Becky Upton Manager Ibarra presented Clerk Upton with a check for $500 as part of the Employee Suggestion Program for her efforts in collecting more than $50,000 in back taxes from AT&T. COWlcilman Wiggins reminded the COWlcil that the County was sponsoring a reception for Manager Ibarra on Wednesday, September 2, 1998, noon, at Downriggers. Mayor BraWl stated that Mayor Sugiyama from Mutsu City will be in Port Angeles for the day on September 21, 1998. He will be touring some of the City's facilities while here. Manager Ibarra noted that Peninsula International Relations Association will be sponsoring a dinner that evening as well; the Council is invited. The meeting was adjourned at 10:03 p.m. Becky J. Upton, City Clerk Gary Braun, Mayor / 14 - 7 - \. t 15 ---------- I HEARING DEVICES ARE A VAILABLE FOR THOSE NEEDING ASSISTANCE. AGENDA CITY OF PORT ANGELES PLANNING COMMISSION SPECIAL MEETING 321 East Fifth Street Port Angeles, W A 98362 AUGUST 12, 1998 7:00 p.m. I. CALL TO ORDER II. ROLL CALL III. ( APPROVAL OF MINUTES: Meeting of July 22 and Special Meeting of July 28, 1998 IV. PUBLIC HEARINGS: 1. SHORELlNEMANAGEMENT PERMIT - SMA 98-04 - FAIRES,J132 Boathaven Drive, ajJroposaUo reconstr:ucLan existin.9--wareho.us structurainJb.ell:L, Industrial Heavy zone inJbe~j1y-'s shoreline area (Continued from July 28, 1998.) 2. MUNICIPAL CODE AMENDMENT - MCA 9.8-04 - CITY OF PORT ANGELES, City wide' Proposal to amend the City's Municipal Code with respect to the installation of above ground liquid storage tanks. V. COMMUNICATIONS FROM THE PUBLIC VI. STAFF REPORTS VII. REPORTS OF COMMISSION MEMBERS VIII. ADJOURNMENT ( PLANNING COMMISSION: Dean Reed, ( Chair), Mary Craver (Vice), Uob King, Cindy Souders, Linda Nuller, Fred Hewins, Paul Ziakin. STAFF: Urad Collins, Director, Sue Roberds Planning Specialist, David Sawyer. Senior Planner. 16 MINUTES PLANNING COMMISSION Port Angeles, Washington 98362 August 12, 1998 7:00 p.m. ROLL CALL Members Present: Linda Nutter, Fredric Hewins, Dean Reed, Mary Craver, Bob King, Paul Ziakin Member Excused: Cindy Souders Staff Present: David Sawyer, Sue Roberds, Brad Collins, Dan McKeen Public Present: Chuck Faires, Ken Sweeney APPROVAL OF MINUTES Commissioner Hewins moved to approve the July 28,1998, special meeting minutes as submitted. The motion was seconded by Commissioner Craver, and passed 4-0 with Commissioners King, Ziakin, and Nutter abstaining. PUBLIC HEARINGS: SHORELINE MANAGRMENT PRRMIT - SMA 98-04 - FAIRES,-8..12 B.o.ath.aven Drive, a proposal to reconstruct an existing warehouse structur.e inJhelH,lndustrial Heavy zone in the City's shoreline area.. (Continued from July 28, 1998.) Senior Planner David Sawyer reviewed the Planning Department's report recommending approval of the pennit as proposed with seven conditions. Chair Reed opened the public hearing. Chuck Faires, 320 West Nillth Street, stated that the warehouse structure has been in place for many years on the site. He would like to rebuild the structure in its present location as it is in serious disrepair. There will be no additional floor area. It would enhance the marina and boat yard as there is not a bonafide marine repair area on the site. The clientele is evolving from a commercial marina to a pleasure boat marina. In response to Commissioner Craver, Mr. Faires stated that the building was used for fish processing by Hegg and Hegg since the early 1950's but is currently vacant. In response to Commissioner Hewins, Mr. Faires answered that he is not intending to do any upgrade to the dock, as it is owned by Hegg and Hegg. 17 Planning Commission Minutes August /2. /998 Page 2 Ken Sweeney, Planning and Environmental Manager for the Port of Port Angeles, 338 West First Street, was authorized by the Port to support the application. The building is in serious disrepair and the appearance of the marina will be improved by the new structure. There is not much extra space around the boat yard so any effort to provide a work space for people who might be working on vessels would be the best use ofthe property. The building belongs to Mr. Faires and the ground on which it sits is leased from the Port. Mr. Faires will be doing the work, not the Port. Chair Reed closed the public hearing. Commissioner King moved to approve the shoreline permit as proposed with seven conditions, citing the following findings and conclusions: 1. The proposed project shall be developed in substantial compliance with the project description and illustrations included in Attachment A for the staff report dated August 12, 1998 for SMA 98-04 and as conditioned in this approval. 2. The project shall not reduce the existing public access to the marina and general harbor area. 3. The project shall comply with the Public Works Department's requirements for stormwater treatment and control to insure there will be no short term or long term impact on the quality of water in the marina and general harbor area. 4. The project shall comply with the regulations of the City's Shoreline Master Program specifically those of Chapters 4, 5 and 6. . 5. The proposed project shall meet all requirements of the Port Angeles Municipal Code including fire, building, and electrical code requirements. 6. The applicant shall obtain all other required permits of the State and/or other agencies with jurisdiction regarding the proposed project. 7. Unless otherwise agreed to by the Lower Elwha Klallam Tribe, if the subject site has not be previously inventoried, evaluated, and reviewed to the satisfaction of the Lower Elwha Klallam Tribe, the subject site shall be evaluated by a cultural review team which shall include a professional archaeologist, a representative of the Lower Elwha Klallam Tribe, the site owner, and the City Planning Department. This team shall determine the extent of excavation monitoring for the project during the permit review process. As an alternative, the applicant may volunteer to have an approved archaeologist on site during any excavation in lieu of a review by the aforementioned cultural team. If during an excavation that by decision of the cultural review team occurs without an approved archaeologist on-site, any phenomena of possible archaeological interest are uncovered, the developer shall stop such work and provide for a site inspection and evaluation by a professional archaeologist to ensure that all possible valuable archaeological data is properly salvaged. 18 Planning Commission Minutes August 12,1998 Page 3 Eindings.: Based on the information provided in the staff report dated August 12, 1998 for SMA 98-04 (including all of its attachments), comments and information presented during the public hearing, and the Planning Commission's discussion and deliberation, the City of Port Angeles Planning Commission hereby finds that: 1. The applicant, Charles W. Faires applied for a Shoreline Substantial Development Permit on June 9, 1998 and the application was determined complete on June 9, 1998. 2. A Mitigated Determination of Non-Significance was issued by the City of Port Angeles SEP A Responsible Official for the proposal on July 16, 1998. 3. The application and hearing process was advertised in accordance with the legal requirements ofthe City of Port Angeles and the State of Washington. 4. The Port Angeles Shoreline Master Program, Comprehensive Plan, and Zoning Ordinance have been reviewed with respect to this application. 5. The site is designated Industrial in the City's Comprehensive Plan, Industrial, Heavy in the City's Zoning Ordinance, and Urban-Harbor in the City's Shoreline Master Program. 6. A boat repair business is a permitted use in the IH zone per P AMC Section 17.34.020-N. 7. A boat repair business is considered a water-dependent industrial use and is a permitted use in the Shoreline Master Program's Urban-Harbor designation. The proposal is a redevelopment of an existing facility. 8. The approval is for the construction of a new 30' by 50' industrial building to be used for a private boat repair business. 9. The site is located on the north side of Marine Drive and is located directly adjacent to the east end ofthe Boat Haven Marina. The vicinity is developed with a number of industrial and recreational oriented facilities. 10. The Waterfront Trail is located along Marine Drive to the south of this location. Conclusions: Based on the information provided in the staff report dated August 12, 1998 for SMA 98-04 including all of its attachments, comments and information presented during the public hearing, the Planning Commission's discussion and deliberation, and the above listed findings, the City of Port Angeles Planning Commission hereby concludes that: 19 ~ Planning Commission Minutes August 12. 1998 Page 4 A. The following adopted City policies are most relevant to the proposed project, Comprehensive Plan Land Use Element Policies A-2 and H4, Conservation Element Policies B-1 and D- 7, the City's Industrial, Heavy zone, and the City's Shoreline Master Program Chapter 4, Policies D-l, J-2, K-l, 2, and 4, and N-l and 2, Chapter 5, Policies D-l, 3 and 9, and all associated regulations. B. As conditioned, the proposed project is consistent with the City's Comprehensive Plan, specifically, Land Use Element Policies A-2 and H4, Conservation Element Policies B-1 and D-7, the City's Industrial, Heavy zone, and the City's Shoreline Master Program Chapter 4, Policies D-l, J-2, K-l, 2, and 4, and N-l and 2, Chapter 5, Policies D-l, 3 and 9, and all associated regulations. C. As conditioned, the project will not be detrimental to the shoreline. D. As proposed, the project will not interfere with public access to the shoreline. E. As conditioned, the proposed project will not interfere with public use of lands or waters subject to the public trust doctrine. The motion was seconded by Commissioner Craver and passed 6 - O. ( MUNICIP AL CODE AMENDMENT - MCA 98-04 - CITY OF PORT ANGELES, City wide: Proposal to amend the City's Municipal Code with respect to the installation of above ground liquid storage tanks. Senior Planner David Sawyer reviewed the Planning Department's staff report. He clarified that the anlendment is proposed to reflect changes in zone classifications and to better implement the Zoning Code's intent as to the placement of flammable/combustible storage tanks. The proposed wording will allow the Code to remain current even if zoning classifications change in the future. Chair Reed opened the public hearing. Commissioner Hewins questioned whether the changes would prevent storage of heating oil tanks and residential propane tanks. Planner Sawyer did not believe the amendments as proposed are intended or will result in the prohibition of permitted residential flammable storage tanks. The intent is not to change or prohibit anything that is currently permitted. Ken Sweeney, Planning and Environmental Manager for tlte Port of Port Angeles, 338 West First Street, supported the Code change. He explained that the Port had asked the City to look at its outdated restrictions in association with a road realignment project realigning Lauridsen Boulevard and Edgewood Drive will go through the existing fuel storage tanks at the Airport. It was determined that above ground storage would be advantageous in replacing the underground tanks and above ground tanks are easier to monitor, are cheaper, and the tanks have a certain amount of portability in the event it is necessary to move the location ofthe tanks. In reviewing the City's Code, it was detelmined that the current wording would not allow above ground dispensing tanks at the airport. ~.o .,. Planning Commission Minutes August 12, 1998 Page 5 Planner Sawyer explained that the amendment will not restrict home heating fuel tanks as they are not regulated tanks. The amendment that is being proposed is for regulated tank placement only. A regulated tank contains more than 1100 gallons of fuel. He suggested that possibly rewording of the amendment to remove reference to capacity of the tanks might be helpful in the Commission's discussion. New storage tank yards will not be permitted outside of the Industrial Heavy zone east of Cedar Street. Chair Reed closed the public hearing. The Commission began discussion of alternative wording for the amendment. Planner Sawyer noted that this amendment is in the Fire Code, not the Zoning Code. The Fire Department has reviewed the amendment, it is their application, they have approved it. He recommended the Planning Commission not recommend changes beyond what the [Fire Department] requested and contained in staff s report. The intent is not to change anything, but to clarify the current interpretation of the Code and its implementation. The Commission called for a ten minute break. The meeting reconvened with Dan McKeen, Fire Marshall, joining the meeting. ( Dan McKeen, Fire Marshall, explained the background of the proposal as previously explained by Ken Sweeney. Residential storage tanks are not regulated by the Fire Code. Commercial tanks are regulated. The current language prohibits the above ground storage of flammable/combustible liquid storage tanks in all zones other than in a commercial capacity. The amendment is an attempt to clear up the confusion created by the current wording and the City's new zoning designations. He read from Section 7902.2.2.1 ofthe Fire Code, which provides language that establishes limits through the Fire Code insofar as the areas in which the above ground tanks outside of a building are limited in an attempt to respond to Commissioner's questions regarding tank capacities. He stated that neither the amendment nor the Fire Code address limits but refer to areas where certain storage uses can occur. He then responded at length to questions regarding capacities of fuel tanks and their placement and assured the Commissioners that the amendment will not limit those permitted uses which already occur, residentially or commercially, but will provide wording that deals with current language found in the Zoning Code and allow for placement of above ground tanks per the Port of Port Angeles' proposal for the airport site. Director Collins suggested drafting a finding to express the Commission's understanding that the Fire Code regulates only commercial storage dispensing and distributing facilities in an attempt to alleviate the Commission's concerns. I \ Commissioner Nutter moved to recommend that the City Council approve the amendment as proposed to Section 14 of the Port Angeles Municipal Code with the following findings including an additional finding (No.8) to address the previous discussion and understanding, and citing the following conclusions: 2.1 Planning Commission Minutes Augustll.1998 Page 6 Eindings.: 1. The City's Comprehensive Plan Land Use Policy H5 states: "Because they are hazardous to the community and detrimental to the general environment of the area petroleum refineries, liquefied natural gas and liquefied petroleum gas facilities, energy facilities. energy plants and their associated facilities and associated transmissionfacilities, as defined in Chapter 80.50 RCW, should not be permitted outside the heavy industrial use area and without conditional use review. " j 11' f l' i ~; 2. A Determination of Non-Significance for the proposed anlendment was signed by the City's SEPA Responsible Official on August 7, 1998 (attached as Attachment A) 3. Chapter 14.21.030, Sub-Section A of the City of Port Angeles Fire Code addresses above ground storage of fuels for direct use "dispensing" purposes and Sub-Section B deals with above ground bulk storage of fuel for "distribution" purposes. 4. The current wording of Chapter 14.21.030, Sub-Section A, prohibits above ground storage of fuels for direct use "dispensing" purposes (regardless of capacity) in all residential zones, certain commercial zones, the PBP and IL zones and the IH zone south of the airport. It does allow above ground storage of fuel for "dispensing" purposes if the total maximum capacity is less than 24,000 gallons in the CA and CBD zones. ( 5. The current wording of Chapter 14.21.030, Sub-Section B, prohibits above ground bulk storage of fuel for "distribution" purposes in all zones except the IH zone west of Cedar Street. 6. The proposed amendment will prohibit all new above ground commercial fuel tanks in residential zones. It will permit above ground "dispensing" fuel tanks with a capacity of less than 24,000 gallons in all non-residential zones and will conditionally permit fuel yards and gas manufacturing and storage in the IH zone only if the site is located west of Cedar Street. 7. The acronyms ACD, CSDl, CSD2 and M-2 are no longer valid references to current City zoning classifications. 8. Section 7902.2.2.1 of the Unifollll Fire Code reads "Locations where above ground tanks are prohibited. Storage of Class I and II liquids in above ground tanks outside of buildings is prohibited within the limits established by law as the limits of districts in which such storage is prohibited." ( ..... Conclusions; A. It is not the intent of Chapter 14.21.030 Sub-Section A to prohibit dispensing tanks in all zones that permit residential units. 22 Planning Commission Minutes August 12, 1998 Page 7 B. The intent of Chapter 14.21.030, Sub-Section B is to allow bulk storage facilities in the areas of town where they currently exist but not to permit new facilities in other areas. C. The proposed amendment is consistent with Comprehensive Plan Land Use Policy H5. D. The proposed amendment does not change the intent of the current Municipal Code. E. The proposed amendment is in the public use and interest. The motion was seconded by Commissioner King and passed 5 - 1 with Commissioner Hewins voting in the negative. Mr. Hewins stated that his objection is because of the capacity question. Chair Reed noted that this item would be considered by the City Council at a public hearing to be conducted on September 1, 1998. COMMUNICATIONS FROM THE PUBLIC ( None. STAFF REPORTS None REPORTS OF COMMISSION MEMBERS None ADJOURNMENT The meeting adjourned at 8:25 p.m. ~~ B ad Collins, Secretary I \ PREPARED BY: S. Roberds 2..0, . '"43 98/09/09-14:26 City of Port Angeles September 09 1998 Page 1 CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Opt Check Vendor Vendor Description GL Code Amount Number Name Number Number 001 47169 Day-Timers Inc. 04040 Compact 2PPW filler 1 2370000 1.64- 47176 Evidence Collection & 05171 Magrule combo pack 1 2370000 1.50- 47188 10 Recall Systems 09115 Barcoding for Library 1 2370000 1,642.40- 47191 Int'l City/County Mgmt. Assn 09044 Council agenda reports manual 1 2370000 1.58- 47203 Lindberg Architects Inc. 12045 Fonts 1 2370000 .63- 47217 Northern Hydraulics Inc. 14153 Water pump 1 2370000 17.15- 47232 Quill Corporation 17000 Business card holder 1 2370000 4.03- Envelopes,dots,punch,binder 1 2370000 4.39- 47236 Rotary Corporation 18017 Tachometer,tester,filters 1 2370000 25.71- 47239 Scanner World USA 19381 Scanner 1 2370000 27.65- 47286 Insight Direct Inc. 09085 Lexmark color printer 1 2370000 34.84- 47311 Salsbury Industries 19533 Pedestal drop box,pedestal 1 2370000 39.20- 47316 Tomahawk Live Trap Company 20100 Raccoon trap 1 2370000 21.81- 47320 Washington (DOL), State of 04137 Concealed weaponss-August 1998 1 2296000 90.00 Total for Department 1,732.53- 0001 47142 AT&T Business Service 01085 8-13 billing 111 4210 47.53 47145 Advanced Travel 01090 Ibarra to Ocean Shores 08-19 111 4310 172.98 47146 AirTouch Cellular Bellevue 01105 8-15 billing 111 4210 21.10 47153 Book Publishing Company 02051 RCW 1998 edition 111 4901 228.06 47155 Builders Hardware & supply Co. 02071 Elbow catch,cam locks 111 3101 21.10 47178 Foster Pepper & Sheffelman 06063 Registration for Civil Service 113 4310 185.00 47180 Gateway 2000 07195 Computer w/cord,modem,upgrade 111 6410 1,975.65 47181 Gina's Bakery 07132 Cookies 112 3101 40.00 47191 Int'l City/County Mgmt. Assn 09044 Council agenda reports manual 111 3101 21.58 47219 Olympic Peninsula Business 16010 2 year Subscription 111 4901 22.00 47226 Port Angeles City Treasurer 03062 Petty cash reimbursement 111 3101 3.75 Petty cash reimbursement 111 3101 2.03 47248 US West Communications 21001 8-14 billin~ 111 4210 136.75 8-14 billing 113 4210 91.28 47254 Washington (DIS), State of 23111 8-05 billing 113 4210 28.43 8-05 billing 111 4210 142.66 47255 Washington Audiology svcs Inc. 23274 Hearing tests 113 4131 120.00 47267 Black Graphic Design, Laurel 02044 Printing-documents,note pads 111 4150 914.99 47276 Data Research Inc. 04068 Subscription renewal-Public Em 113 4901 145.00 47280 Flex-Plan Services Inc. 06158 August services 111 4150 117.60 47282 Gateway 2000 07195 Computer for Human Resources 113 6410 1,900.12 47285 Ibarra, Patrick 09113 Reimburse business lunch expen 111 4310 123.40 47287 Jossey-Bass Inc Publishers 10091 SUbscription-Leadership in Act 111 4901 99.00 47302 Price Cost co Credit Card Pmts 03261 Office supplies,cable,batterie 111 3101 9.59 47307 Ragan Communications Inc. 18228 Subscription-Motivational Mgr 111 4901 99.00 subscriptn-Positive Leadership 111 4901 148.00 47317 Volunteer Fire Association 22060 Picnic supplies 111 4155 25.28 Total for Administration 6,841.88 0002 47145 Advanced Travel 01090 Bryant to Tacoma 08-16 230 4310 129.91 47146 AirTouch Cellular Bellevue 01105 8-15 billing (inc July) 240 4210 112.55 47158 Captain T's 03048 Polos,turtleneck,embroidery 201 3101 F4 687.44 47182 Gov't Finance Officers Assn 07003 Membership dues-Godbey 201 4901 145.00 , ' 98/09/09-14:26 City of Port Angeles September 09 1998 CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Dpt Check Vendor Vendor Number Name Number 47206 Lunsford & Associates Inc 12179 47223 Pitney Bowes Inc. 16018 47226 Port Angeles City Treasurer 03062 47242 Washington (Auditor), State of 19270 47248 US West Communications 21001 47253 WMTA (WA Municipal Treasurer) 23243 47254 Washington (DIS), State of 23111 47257 Xerox corporation 24001 47265 Automated Business Sys. Inc. 01050 47278 Diversified Industries 04052 47305 RIA Group 18247 47311 Salsbury Industries 19533 47326 Xerox corporation 24001 0003 47162 Clallam Jefferson Public Dfndr 03274 47193 Jefferson Co Sheriff's Office 10141 47232 Quill corporation 17000 47248 US West Communications 21001 47254 Washington (DIS), State of 23111 47271 Clallam County District Ct 1 03069 47294 Ortloff Atty. at Law, Kimberly 15146 47319 WSAMA-WA Assn of Muncpl Attnys 23052 47325 West Group 23018 Description GL Code Number Rent storage #A104 for Septemb 201 4530 Service on postage meter 240 4810 Meter rental Oct/Dec 1998 205 4530 Service,gear stop for postage 205 4810 Petty cash reimbursement 205 4810 Petty cash reimbursement 205 4210 Petty cash reimbursement 205 4210 Petty cash reimbursement 205 4210 Audit services July 230 4150 8-14 billing 201 4210 8-14 billing 230 4210 8-14 billing 2404210 Registration-Ziomkowski 230 4310 8-05 billing 201 4210 8-05 billing 2304210 8-05 billing 240 4210 Lease agreement pmt #6 205 4530 Copies of budget/CAFR 230 3101 Copy center svcs August 1998 205 4150 Gov't Acctg/Auditing manual 230 3101 Pedestal drop box,pedestal 240 4990 Base charge, copies August 205 4530 Total for Finance Public Defender fees for Septe 311 4150 Civil process-Bishop 311 5090 Civil process-Bishop 311 5090 Envelopes,dots,punch,binder 311 3101 8-14 billing 311 4210 8-05 billing 311 4210 Court costs August 1998 311 5090 Legal Services June 1998 311 5090 Legal services July 1998 311 5090 Legal Services August 1998 311 5090 Conf registration-C Knutson 311 4310 Conf registration- D Dickson 311 4310 Legal publications- August 311 3101 Total for Atty 0004 47145 Advanced Travel 01090 Collins to Seattle 07-29 411 4310 47248 US West Communications 21001 8-14 billing 411 4210 47254 Washington (DIS), State of 23111 8-05 billi ng 411 4210 Total for Planning 0005 47143 AT&T Wireless Services 20000 8-22 bill i ng 530 4210 47145 Advanced Travel 01090 Miller-Pierce Co/Tacoma 8-23 530 4980 Peninger to Everett 7-26 530 4310 Baertschiger to Tacoma 8-23 530 4310 Page 2 Amount 115.00 196.38 350.58 222.28 6.00 .50 .32 3.00 459.80 91.28 114.01 273.84 65.00 35.61 48.22 24.27 2,161.09 70.89 1,210.00 143.78 535.35 483.02 7,685.12 2,500.00 8.40 19.70 59.99 159.83 36.92 5,580.47 109.80 359.00 233.25 100.00 100.00 780.58 10,047.94 16.55 91.28 22.62 130.45 53.00 105 .00 565.00 25 303.00 98/09/09-14:26 City of Port Angeles September 09 1998 CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Dpt Check Number Vendor Name Vendor Number 47146 AirTouch Cellular Bellevue 01105 47149 Angeles Communications Inc 01069 47152 Blumenthal Uniforms & Equipmt 02047 47153 Book Publishing Company 02051 47158 Captain T's 03048 47176 Evidence Collection & 05171 47179 GTE/ERS Inc. 07005 47192 Jackson's Signs 10018 47211 National Community Notificatio 14452 47214 National Police Chiefs 14062 47248 US West Communications 21001 47250 United Parcel Service 21005 47254 Washington (DIS), State of 23111 47268 Brodsky's Uniforms 02219 47269 Business Interiors Northwest 02351 47272 Clallam County Humane Society 03072 47273 Clallam County Sheriff's Dept. 03074 47301 Port Angeles Police Department 16105 47316 Tomahawk Live Trap Company 20100 47318 WA Assn of Sheriffs & Police 23003 0006 47143 AT&T Wireless Services 20000 47145 Advanced Travel 01090 47146 AirTouch Cellular Bellevue 01105 47152 Blumenthal Uniforms & Equipmt 02047 Description GL Code Number Coyle to Mercer Island 8-04 530 4310 Coyle to Mercer Island 8-04 530 4310 8-15 billing 530 4210 8-15 billing 5304210 8-15 billing 530 4210 8-15 billing 5304210 8-15 billing 5304210 8-15 billing 530 4210 8-15 billing 530 4210 8-15 billing 530 4210 8-15 billing 530 4210 Hook up detectives extension 530 4210 Shirt,emblem 530 2080 Boots, shoes 530 2080 RCW 1998 edition 530 3101 Embroidery 530 3111 Magrule combo pack 530 3101 Calibrate traffic radar 530 4810 K-9 training area sign 530 4980 Registration Community Notific 534 4310 1998 Directory Law Enforcement 511 3101 8-14 billing 511 4210 8-14 billing 534 4210 8-14 billing 530 4210 Shipping charges 530 4210 Shipping charges 534 4210 8-05 billing 511 4210 8-05 billing 534 4210 8-05 billing 530 4210 Handcuff chain 530 2080 Chair for City Manager 530 4810 August 1998 contributions 530 4150 Inmate care June 1998 512 5099 Petty cash reimbursement 530 4210 Petty cash reimbursement 530 3101 Petty cash reimbursement 530 3101 Petty cash reimbursement 530 4210 Petty cash reimbursement 530 4210 Raccoon trap 530 3101 Electric Monitoring Svc- July 512 5099 Total for Police 8-22 billing Becker to Everett 08-18 Becker to SeaTac 8-4 & 8-11 Nielsen to Spokane 08-20 8-15 billing 8-15 billing 8-15 billing Fastener, jacket, emblem 611 4210 645 4310 645 4310 643 4310 611 4210 611 4210 643 4210 643 2080 26 Page 3 Amount 9.50 5.00 32.02 28.05 39.76 9.39 31.05 9.39 71.49 42.52 13.03 57.07 50.25 273.76 228.06 11.87 20.50 330.81 107.90 139.00 89.00 159.83 114.01 22.73 69.95 23.72 40.13 5.92 58.29 34.44 755.27 3,325.00 18,208.64 8.95 25.00 8.62 4.75 3.46 297.83 793.50 26,585.46 24.38 40.00 39.00 289.20 12.36 14.96 30.57 244.73 September 09 1998 Page 4 98/09/09-14:26 City of Port Angeles CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Opt Check Number Vendor Name Vendor Number 47158 Captain T's 03048 47159 Chastain, David 03187 47160 Clallam County EMS/Trauma Care 03068 47167 Curtis & Sons Inc, L. N. 03098 47202 Larry's Janitor Service 12040 47239 Scanner World USA 19381 47248 US West Communications 21001 47254 Washington (DIS), State of 23111 47284 ICBO (Int'l Conference of 09001 47291 Nielsen, Tony 14120 47302 Price Costco Credit Card Pmts 03261 0007 47145 Advanced Travel 01090 47146 AirTouch Cellular Bellevue 01105 47165 Complete Line, The 03087 47169 Day-Timers Inc. 04040 47197 Kenworthy, Gary 11013 47222 Parsinen Landscape Maintenance 16258 47226 Port Angeles City Treasurer 03062 47227 Price-Aire Inc. 16110 47235 Recycled Earth Products 18265 47248 US West Communications 21001 47252 Viking Office Products 22054 47254 Washington (DIS), State of 23111 47274 Complete Line, The 03087 47284 ICBO (Int'l Conference of 09001 47298 Parsinen Landscape Maintenance 16258 Description GL Code Number Amount Jacket lettering 641 3111 Jerzees,polos,embroidery 644 3111 Reimburse clothing allowance 643 2080 Medic I Advisory for September 643 4150 Piercing applicator,hose 641 3501 Janitorial svcs,towels August 684 4150 Scanner 642 3101 8-14 billing 611 4210 8-14 billing 642 4210 8-14 billing 643 4210 8-14 billing 641 4210 8-05 billing 611 4210 8-05 billing 642 4210 8-05 billing 643 4210 8-05 billing 641 4210 Seminar UFC Overview-Wheeler 645 4310 Tuition reimbursement 645 4310 Office supplies,cable,batterie 611 3101 8.63 614.13 123.94 500.00 756.95 433.50 377.63 114.01 22.73 22.73 68.55 34.08 .56 1.34 1.49 250.00 158.54 130.46 Total for Fire 4,314.47 Smith to Tacoma 8-06 711 4310 Smith to Forks 8-20 711 4310 8-15 billing 711 4210 8-15 billing 711 4210 Transparency, paper 711 3101 Compact 2PPW filler 711 3101 Personal vehicle August 1998 711 4310 Mowing-141 Columbus 711 4150 Mowing-1612 W 8th 711 4150 Mowing-1314 E Caroline Street 711 4150 Petty cash reimbursement 784 3101 Payne air conditioner 784 4810 Soil for lawn 784 3101 8-14 billing 711 4210 Copyho lder, pens, notebooks 711 3101 Notebooks, planner, appt book 711 3101 8-05 billing 711 4210 Double readout plan 711 3101 Curves,protractor,triangle 711 3101 Seminar UBC overview-Titus 711 4310 Nuisance cutting-1125 Hazel St 711 4150 60.00 25.00 11.57 29.69 41.76 22.38 58.50 323.70 202.31 768.79 35.22 2,613.34 194.22 638.98 135.51 42.64 102.56 24.35 35.97 210.00 566.47 Total for Public Works 6,142.96 0008 47142 AT&T Business Service 01085 8-25 bi II ing 863 4210 6.38 47145 Advanced Travel 01090 Reifenstahl/Penic to Bellingha 862 4310 394.86 47146 AirTouch Cellular Bellevue 01105 8-15 billing (inc July) 861 4210 86.78 47150 Angeles Temporary Services 01076 C Kochanek pe 08-15-98 866 4150 675.92 47163 CoastWise Consulting 18133 Professional svcs-Morse Creek 811 4150 27 1,885.00 47183 Grainger Inc. 07015 Fan motor 865 3101 125.15 98/09/09-14:26 Fnd Dpt Check Number Vendor Name 47199 Kochanek, Cindy Lou 47217 Northern Hydraulics Inc. 47226 Port Angeles City Treasurer 47233 Quiring Monuments Inc. 47236 Rotary Corporation 47243 Steuber Distributing Inc 47248 US West communications 47254 Washington (DIS), State of 47266 Bales, Benjamin 47293 Oregon Brass Works 47303 Puget Safety Equipment 47326 Xerox Corporation 101 0001 47154 Brewer, David 102 47264 American Innotek Inc. City of Port Angeles September 09 1998 CHECK REGISTER Date From 08/29/98 To 09/11/98 Vendor Number 11136 14153 03062 17001 18017 19033 21001 23111 02400 15032 16248 24001 02055 01373 Description GL Code Number Fan motor 865 3101 Pre-need sales August 1998 866 4990 Water pump 865 3101 Petty cash reimbursement 865 3120 Marker-Homer 866 3401 Tachometer,tester,filters 865 3120 Bloom booster 865 3140 8-14 billing 811 4210 8-14 billing 866 4210 8-14 billing 865 4210 8-14 billing 861 4210 8-14 billing 862 4210 8-14 billing 863 4210 8-14 billing 865 4210 8-14 billing 862 4210 8-08 billing 8664410 8-05 billing 811 4210 8-05 billing 866 4210 8-05 billing 861 4210 8-05 billing 862 4210 8-05 billing 863 4210 Buy back Crypt 7,Tier A,mausol 866 9430 Correct date on marker-Bailey 866 3401 Eye wash stations,gloves 865 3120 Copier service 863 4810 Total for Parks & Recreation Total for General Fund Contract services for Septembe 115 4990 Total for Convention Center Fund Brief relief pouch 102 2370000 Total for Department 0007 47173 Econolite Control Products Inc 05003 Repair Econolite CMU 752 3125 47224 Points Sharp Steel Inc. 16092 Point,chisel,asphalt cutter 752 3101 47238 Sanderson Safety Supply Co. 19048 Boots 752 3101 Boots 752 3101 47248 US West Communications 21001 8-14 billing 752 4210 47252 Viking Office Products 22054 Notebooks,tape,folders,pens 752 3101 47254 Washington (DIS), State of 23111 8-05 billing 752 4210 47264 American Innotek Inc. 01373 Brief relief pouch 752 3101 47303 puget Safety Equipment 16248 Sweatshirts 752 3101 47314 Star Rental & Parts 19183 Ring spacer,spring,cage 752 4810 22 47324 Wayne's Nursery 23063 Ground cover plants 752 4150 Total for Public Works Page 5 Amount 124.44 648.90 234.29 5.36 228.00 351.20 170.87 68.55 22.73 22.73 45.47 22.73 68.55 38.27 52.15 80.50 38.07 5.21 58.67 2.76 6.52 2,500.00 43.00 53.90 132.72 8,199.68 68,215.43 100.00 100.00 4.55- 4.55- 130.32 10.84 356.80 95.34 68.55 153.19 .92 62.19 322.86 198.47 116.53 1,516.01 98/09/09-14:26 City of Port Angeles CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Dpt Check Number Vendor Name Vendor Number 107 0005 47145 Advanced Travel 47216 New World Systems 47232 Quill Corporation 47248 US West Communications 01090 14184 17000 21001 47254 Washington (DIS), State of 23111 47301 Port Angeles Police Department 16105 208 0002 47178 Foster Pepper & Sheffelman 06063 310 0007 47283 Harding Lawson Assoc Infra Inc 08248 0008 47187 Horizon Irrigation and Turf 08329 316 0008 47304 Queen of Angels 47313 Smith, Jovanna 17018 19536 321 0007 47140 3M PAF0344 20186 47147 Alden Associates Inc. 01382 47171 Drennan-Ford Funeral Home 04243 47188 ID Recall Systems 09115 47203 Lindberg Architects Inc. 12045 47215 Network Administration Service 14453 401 47168 Davis, James 04251 47177 Fami l ian NW 06020 47200 Kochanek, Greg 11162 47209 Mottram, Sandra 13401 47218 Old Town T-Shirt Co. 15130 47226 Port Angeles City Treasurer 03062 47240 Sibelman, Larry 19534 47241 Snyders, Clarissa E 19535 Description Wu to SeaTac 8-04 Expenses for July Business card holder 8-14 billing 8-23 bi II ing 8-05 billing Petty cash reimbursement Professional svcs-Del Hur September 09 1998 GL Code Number Total for Street Fund 532 4310 532 6410 532 3101 532 4210 532 4210 532 4210 532 4210 Total for Pen Com Total for L.I.D. Control Fund 292 4150 Professional svcs-Airport Road 792 4150 Professional svcs-Airport Road 792 4150 Risers Pipe,valves,els,couplings Total for Public Works 895 3101 895 3101 Total for Parks & Recreation Total for Capital Improvement Fund Damage Deposit Rfd-Lincoln Pk 860 9636 Damage deposit rfd-Loomis Bldg 860 9636 Total for Lincoln Park Improvement Fund Professional svcs-Library Laser printer,warranty Library Dedication plaque Barcoding for Library Fonts Telephone system for Library Telephone system training for 716 4150 716 4150 716 4150 716 4150 716 4150 716 4150 716 4150 Total for Library Construction Fund Utility deposit rfd-010553oo4 Credit setter,coupling from Utility overpmt rfd-050962010 Utility deposit rfd-103837011 Hats Water tank rebate-Johnson Utility deposit rfd-018546025 Utility overpmt rfd-014222014 401 2131100 401 1414000 401 1222200 401 2131100 401 2370000 401 1343300 401 2131100 401 1222200 Page 6 Amount 1,511.46 9.50 2,144.51 55.01 387.86 47.81 82.13 .50 2,727.32 28.16 28.16 8,042.86 7,994.93 16,037.79 1,132.38 3,031.36 4,163.74 20,201.53 100.00 50.00 150.00 23,867.76 4,190.81 258.96 22,432.23 8.66 4,380.74 600.00 55,739.16 250.00 363.32- 207.99 167.82 q' 8.63- 2\~ 25.00 125 . 00 11.89 98/09/09-14:26 City of Port Angeles September 09 1998 CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Dpt Check Vendor Vendor Number Name Number 47247 Tacoma Screw Products Inc. 20191 47279 Everwarm Inc. 05013 47306 Raber, Woodrow 18302 47312 Schosbeck, Dennis 19537 47315 Thomsen, Sherry 20209 0009 47142 AT&T Business Service 47143 AT&T Wireless Services 47145 Advanced Travel 47146 AirTouch Cellular Bellevue 01085 2??oo 01090 01105 47174 Equifax - Credit Information 05160 47218 Old Town T-Shirt Co. 15130 47226 Port Angeles City Treasurer 03062 47228 Public Utility Dist Clallam Co 16038 47248 US West Communications 21001 47251 Utilities Underground Loc Ctr 21010 47254 Washington (DIS), State of 23111 47274 Complete Line, The 03087 47275 Credit Bureau of Clallam Co 03094 47289 Loewen, Jack 12182 47296 PERS 16016 47298 parsinen Landscape Maintenance 16258 47309 Rohlinger Enterprises Inc. 18087 47321 Washington (DRS), State of 23141 47326 Xerox corporation 24001 402 47177 Familian NW 06020 47218 Old Town T-Shirt Co. 47264 American Innotek Inc. 15130 01373 Description GL Code Number Eyebolts 401 1411000 Weatherwize-Rempel 401 1344000 Utility ovrpmt rfd-021466oo2 401 1222200 Reissue Utility deposit rfd ck 401 2131100 Utility deposit rfd-098965035 401 2131100 Total for Department 8-13 billing 911 4210 8-15 billing 911 4210 Titus to Quinault 7-30 911,4310 8-15 billing 911 4210 8-15 billing 911 4210 8-15 billing 911 4210 8-15 billing 911 4210 8-15 billing 911 4210 8-15 billing 911 4210 8-15 billing 911 4210 8-15 billing 911 4210 Professional svcs August 911 4150 Hats 911 3101 Petty cash reimbursement 911 4990 Lauridsen & L billing 8-20 911 4710 8-14 billing 911 4210 8-14 billing 911 4210 July locates 911 4150 8-05 billing 911 4210 Logarithmic 911 3101 Public records bulletin 911 4150 Rfd-UG primary power installat 911 9907 Excess compensation-L Emery 911 2010 Substation Landscape maint-Aug 911 4150 Impact wrench 911 4810 Statewide pensioners- August 911 2010 Lease agreement pmt #6 911 4530 Total for Light Total for Light Fund Setters,coupling Saddles,adapters Saddles,adapters Tapping sleeve Tapping sleeve Saddles,tapping sleeve Saddles,tapping sleeve Hats Brief relief pouch Brief relief pouch 402 1414000 402 1414000 402 1411000 402 1414000 402 1411000 402 1414000 402 1411000 402 237??oo 402 237??oo 402 237??oo Page 7 Amount 93.74 196.92 117.00 81.19 66.95 971.55 6.38 7.11 91.00 9.39 11.00 40.10 10.13 17.93 9.39 10.67 17.93 12.79 117.79 8.00 19.22 319.31 40.92 28.06 23.78 28.80 17.26 546.87 27,619.10 1,871.42 92.98 200.16 854.41 32,031.90 33,003.45 30 363.32 241.91 19.11 362. 50 28.64 626.78 65.58 8.62- 4.55- 4.55- 98/09/09-14:26 City of Port Angeles CHECK REGISTER Date ,From 08/29/98 To 09/11/98 Fnd Opt Check Number Vendor Name Vendor Number 0003 47142 AT&T Business Service 01085 47143 AT&T Wireless Services 20000 47148 AmTest Inc. 01034 47196 Jones Chemicals Inc. 10027 47221 PNPCA Section Treasurer 16267 47229 PumpTech Inc. 16233 47238 Sanderson Safety Supply Co. 19048 47248 US West Communications 21001 47250 United Parcel Service 21005 47251 Utilities Underground loc Ctr 21010 47254 Washington (DIS), State of 23111 47263 All World Scientific 01377 47264 American Innotek Inc. 01373 47270 Certified laboratories 03057 47322 Washington (Ecology), State of 23106 0007 47146 AirTouch Cellular Bellevue 01105 47177 Fami l ian NW 06020 47178 Foster Pepper & Sheffelman 06063 47184 Hach Company 08124 47196 Jones Chemicals Inc. 10027 47218 Old Town T-Shirt Co. 15130 47224 Points Sharp Steel Inc. 16092 47226 Port Angeles City Treasurer 03062 47234 RadioShack Accounts Receivable 18003 47248 US West Communications 21001 47250 United Parcel Service 21005 47251 Utilities Underground loc Ctr 21010 L___ Description 8-25 billing 8-01 billing 8-22 billing Silver Hydrochlorite 1998 Olympic Section dues for Seal kit,UPS charges Battery pack 8-14 billing 8-23 billing 8-23 billing 8-23 bi II ing 8-23 billing 8-23 billing 8-23 billing 8-23 billing Shipping charges Shipping charges July locates 8-05 billing Glucose glutamic acid Glucose glutamic acid Glucose glutamic acid Brief relief pouch Grease tubes Wastewater discharge permit Gl Code Number September 09 1998 Total for Department 354 4210 354 4210 354 4210 354 4150 354 3101 354 4901 354 3101 354 3101 354 4210 354 4210 354 4210 354 4210 354 4210 354 4210 354 4210 354 4210 354 3101 354 4210 354 4150 354 4210 354 3101 354 3101 354 3101 354 3101 354 3101 354 4990 Total for 8-15 billing 753 4210 Gaskets,tie down strap, cutter 753 3101 Gasket 753 3101 Gasket 753 3101 Professional svcs-Water Rights 753 4150 Flask,meter,probe 753 3101 Chlorine, container deposit 753 3101 Container deposit refund 753 3101 Hats 753 3101 Asphalt cutter,chisel 753 3101 Petty cash reimbursement 753 4310 Petty cash reimbursement 753 4310 Petty cash reimbursement 753 4310 Petty cash reimbursement 753 3101 Telephone,shoulder rest 753 3101 8-14 billing 753 4210 8-23 billing 753 4210 8-23 billing 753 4210 Shipping charges 753 4210 July locates 753 4150 Wastewater Page 8 Amount 1,690.12 6.38 62.50 21.94 17.00 2,322.74 25.00 119.41 91.47 45.47 47.81 28.11 47.81 47.81 47.81 47.81 28.11 10.88 21.98 14.03 22.19 25.83 17.55 25.83- 62.19 195.33 5,855.50 9,206.83 9.74 115.78 12.15 14.35 1,751 .98 733.83 1,249.72 750.00- 117.79 10.84 7.01 6.42 6.31 11.09 87.98 22.73 59.20 267.52 11.42 14.03 31 98/09/09-14:26 City of Port Angeles September 09 1998 CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Dpt Check Number Vendor Name Vendor Number 47254 Washington (DIS>, State of 23111 47264 American Innotek Inc. 01373 47299 Peninsula Concrete Cutting Inc 16263 404 47218 Old Town T-Shirt Co. 47230 QED Environmental Systems Inc 47264 American Innotek Inc. 47310 Roto Industries Inc. 15130 17011 01373 18273 0007 47218 Old Town T-Shirt Co. 15130 47226 Port Angeles City Treasurer 03062 47230 QED Environmental Systems Inc 17011 47237 SWANA 19101 47248 US West Communications 21001 47249 USDA, APHIS, FSO, Acctg Svcs 21069 47254 Washington (DIS>, State of 23111 47264 American Innotek Inc. 01373 47297 Parametrix Inc. 16155 47300 Phillips Scale Co. Inc. 16139 47310 Roto Industries Inc. 18273 47323 Waste ~anagement - Northwest 23060 421 47226 Port Angeles City Treasurer 03062 452 0007 47198 Key Bank of WA (Bellingham> 47244 Strider Construction Co Inc 11128 19447 454 0007 47277 Delhur Industries Inc 47292 Olympic Bank 47297 Parametrix Inc. 04042 15132 16155 501 0007 47141 A-Line Equpiment Co 01381 47164 Commercial Brake & Clutch Inc 03444 47190 Int'l Belt & Rubber Supply Inc 09049 Description GL Code Number 8-05 billing Brief relief pouch Hole drilling,cutting 753 4210 753 3101 753 3101 Total for Public Works Total for Water/Wastewater Fund Hats Fi l ters Brief relief pouch 300 Hundred gallon container 404 237??oo 404 237??oo 404 2370000 404 237??oo Total for Department Hats 755 3101 Petty cash reimbursement 755 4901 Filters 755 3101 Membership renewal-K Ridout 755 4901 Membership renewal-T McCabe 755 4901 8-14 billing 755 4210 Professional svcs Apr-Jun 755 4150 8-05 billing 755 4210 Brief relief pouch 755 3101 LF Enviro monitoring pe 8-1-98 755 4150 Maintenance, shipping svcs 755 4150 300 Hundred gallon container 755 3501 Recycling svcs - August 98 755 4150 Total for Public Works Total for Solid Waste Fund Petty cash reimbursement 421 2451000 Total for Conservation Fund Escrow acct #473544001802 793 4150 DT Sidewalk/Watermain project 793 4150 Total for Water Construction Landfill Cell #3 pmt #1 Escrow scct #1701088820 Engineering Svcs pe 8-1-98 795 4150 795 4150 795 4150 Total for Solid Waste Construction Support stand Seal remover Fuel delivery hose 760 3501 760 3501 760 3101 Page 9 Amount 11.27 62.19 435.00 4,268.35 15,165.30 8.62- 24.20- 4.56- 450.15- 487.53- 117.79 32.00 330.48 115.00 115.00 114.01 10,851.16 15.85 62.17 615.05 355.07 6,148.20 39,270.72 58,142.50 57,654.97 8.00 8.00 8,272.44 170,246.90 178,519.34 196,868.28 9,566.00 8,151.24 214,585.52 3" 1.-; 593.45 56.04 66.56 ~ 98/09/09-14:26 City of Port Angeles September 09 1998 Page 10 CHECK REGISTER Date From 08/29/98 To 09/11/98 Fnd Dpt Check Vendor Vendor Description GL Code Amount Number Name Number Number 47210 N C Machinery Co. 14001 Seals,rings,rod,core charge 760 3101 1,520.11 Tube A 760 3101 62.17 Water pump, core charge,seal 760 3101 600.25 47248 US West Communications 21001 8-14 bi II ing 760 4210 22.73 47254 Washington (DIS), State of 23111 8-05 billing 760 4210 10.65 47288 Kaman Industrial Technologies 11082 Seal 760 3101 11.53 Total for Equipment Services Fund 2,943.49 502 0002 47145 Advanced Travel 01090 Kheriaty to Bellevue 7-06 250 4310 619.76 47146 AirTouch Cellular Bellevue 01105 8-15 billing 250 4210 16.30 47172 Dungeness Communications & 04210 July maintenance 250 4810 200.00 47189 Inmac 09043 Vinyl binder pages 250 3101 34.42 47226 Port Angeles City Treasurer 03062 Petty cash reimbursement 250 3101 10.78 47248 US West Communications 21001 8-14 billing 250 4210 68.55 47254 Washington (DIS), State of 23111 8-05 billing 250 4210 45.87 47286 Insight Direct Inc. 09085 Lexmark color printer 250 4810 475.84 47302 Price Cost co Credit Card Pmts 03261 Office supplies,cable,batterie 250 3101 131.58 Total for Information Systems Fund 1,603.10 503 0001 47144 AWC Employee Benefit Trust 01231 Medical,vision,life September 121 4630 63,067.05 Medical,vision,life September 121 4632 1,179.75 Medical,vision,life September 121 4634 10,625.00 47151 Bishop, Virgil 02019 Reimburse Sept Medicare prem 121 4635 94.00 47156 Cameron, Kenneth 03252 Reimburse Sept Medicare prem 121 4635 65.70 47157 Camperini, Richard 03273 Reimburse Sept Medicare prem 121 4635 46.10 47175 Evans, Sid 05103 Reimburse Sept Medicare prem 121 4635 42.50 47185 Hansen, George D. 08048 Reimburse Sept Medicare prem 121 4635 46.80 47186 Hiener, Rudy 08024 Settlement of Claim #34-98 119 4999 120.00 47194 Johnson, Donald G 10052 Reimburse Sept Medicare prem 121 4635 43.80 47195 Johnson, Harry 10047 Reimburse Sept Medicare prem 121 4635 42.50 47201 Kochanek, Harry 11017 Reimburse Sept Medicare prem 121 4635 85.00 47204 Lindley, James K. 12019 Reimburse Sept Medicare prem 121 4635 43.80 47205 Loucks, Jasper 12186 Reimburse Sept Medicare prem 121 4635 85.00 47207 Miesel, Phil 13261 Reimburse Sept Medicare prem 121 4635 46.10 47208 Morgan, Roy 13145 Reimburse Sept Medicare prem 121 4635 46.10 47212 NW Admin Transfer Acct (Non-S) 14169 Medical,dental,vision Septembe 121 4633 8,839.45 47213 NW Admin. Transfer Acct (SW) 14016 Medical,dental,vision Septembe 121 4633 2,048.20 47225 Port Angeles Auto Glass 16021 Repair vehicle ;window-Tatom 119 4999 102.51 47231 Qualls, John 17017 Settlement of Claim #32-98 119 4999 876.74 47245 Summit Law Group PLLC 19437 Professional svcs-General labo 119 4150 217.20 47246 Sweatt, Johnnie 19146 Reimburse Sept Medicare prem 121 4635 65.70 47256 Wolfley and Tami Cook, Lane 23421 Settlement of Calim #41-95 119 4999 22,000.00 47295 Owens, Annette 15082 Reimburse-chiropractic charges 121 4630 20.00 47308 Rainier EAP Inc. 18057 August 1998 services 121 4150 330.00 Total for Self - Insurance Fund 110,179.00 602 0002 47144 AWC Employee Benefit Trust 01231 Medical,vision,life September 225 4635 2,297.00 33 98/09/09-14:26 Fnd Opt Check Number 621 0002 625 0008 652 0008 654 0008 City of Port Angeles Vendor Name 47161 Clallam Jefferson CAC Inc. 47166 Cozi Homes Construction 47281 Garland Construction & Maint 47158 Captain T's 47170 District 13 47226 Port Angeles City Treasurer 47248 US West Communications 47254 Washington (DIS), State of 47220 Oregon Brass Works 47290 Natural Structures 47293 Oregon Brass Works CHECK REGISTER Date From 08/29/98 To 09/11/98 Vendor Number 03022 03299 07063 03048 04050 03062 21001 23111 15032 14145 15032 Description September 09 1998 GL Code Number Total for Firemen's Pension Fund Expenses May,June,July 1998 214 4150 Final billing-Berggren 96PA62L 214 4150 Contractor pmt-L Gross 96PA83L 214 4150 Total for P.A. Housing ReHab Project Tournament t-shirts Jerzees/screens ASA registration Adult Co-ed Petty cash reimbursement Petty cash reimbursement 881 3101 881 4150 881 4150 888 3101 880 3101 Total for Recreational Activities Fund 8-14 billing 8-23 billing 8-05 billing 868 4210 868 4210 868 4210 Total for Esther Webster Trust Fund Plaque-Morse Plaque-Rowan Plaque-Hutton Plaque-Linda Vose Benches Marker - Baldwin 873 3199 873 3199 873 3199 873 3199 873 3199 873 3199 Total for Waterfront Trail Fund Grand Total 34 Page 11 Amount 2,297.00 13,635.89 22,398.75 6,096.10 42,130.74 244.93 301.03 600.00 12.00 37.28 1,195.24 22.73 47.81 52.98 123.52 57.00 82.75 107.16 59.00 2,306.45 45.60 2,657.96 810,739.69 r-. 35 ., CITY OF PORT ANGELES - PUBLIC WORKS DEPARTMENT MEMORANDUM "MAINTAINING AND BUlWING A BETTER COMMUNITY" September 4,1998 TO: Kay Godbey, Finance Director FROM: Jack Pittis, Public Works Director RE: Port Angeles Landfill Cell #3 Expansion (payment #1) CONTRACT THIS PAY REQUEST PREVIOUS PAYMENTS TOTAL WORK TO DATE Sales Tax (7.9% of subtotal) LESS Retaina e (5% of subtotal) $191,320.00 $15,114.28 $9,566.00 $191,320.00 $15,114.28 ( $9,566.00 $196,868.28 Ori inal Contract Amount $1,585,920.15 Chan e Orders to Date (*) Subtotal Contractor Pa ments Authorized to Date 12.06 % DISBURSEMENT SUMMARY (Account No.US-7512-9804-4150) CONTRACTOR: Delhur Industries Inc. P.O. Box 1116 Port Angeles, W A 98362 $196,868.28 RETAINAGE: Olympic Bank 716 East Front St. Port Angeles , W A 98362 Escrow acct.# 1701088820 , $9,566.00 TOTAL DISBURSEMENT FOR THIS PAYMENT I CHANGE ORDER COMMENTS: PREPARED B~ --. L . ~ APPROVED BY: C' Engineer ~'. Dir ctor PW-178 [Rev. 11/931 $206,434.28 I 36 MONTHLY PAYMENT ESTIMATE SUMMARY Parametrix, Inc. Consultants in Engineering & Environmental Sciences Project Title: PALF CELL # 3 EXPANSION Project No. : 98-04 PMX No.: 23-2191-05 Contractor: Delhur Industries, Inc. 4333 Tumwater Access Rd. P.O. Box1116 Port Angeles, WA 98362 Pay Estimate NO.1 Period August 1998 Total Contract Amount: $1,711,207.84 (.....~s ~Y.L^,e,.) Description Previous Gross Earnings $0.00 Materials on Hand $0.00 Subtotal Sales Tax (7.9%) Total + Sales Tax Less Retainage (5% Subtotal) Net Earnings Less Previous Payments Net Payment this Estimate Contract Completion Data % Time Elapsed % Work Completed Notice to Proceed Received by Contractor Contract Completion Time Working Days Complete This Estimate Contract Completion Date Approved by m~ Mike Slade Amounts This Month To Date $191.320.00 $191,320.00 $0.00 $0.00 $191,320.00 $191,320.00 $15,114.28 $15,114.28 $206,434.28 $206,434.28 $9,566.00 $9,566.00 $196,868.28 $196,868.28 $0.00 $0.00 $196,868.28 $196,868.28 17% 11.50% 3-Aug-98 90 Working Days 15 Dec.17,1998 own." (S;,n,"'" & ~ .~ City ~f Port Angeles /<- J (!.. l"T '-1 r:: '-) · 37 Delhur Industries,lnc. 4333 Tumwater Access Rd. P.O. Box 1116 Port Angeles, WA 98362 PAY ESTIMATE NO.1 AUGUST, 1998 PALF CELL # 3 EXPANSION City of Port Angeles, WA Project No. 98-04 PMX No. 23-2191-05 APPLICATION FOR PAYMENT Pay Estimate No.1 Project Item Description Unit Plan Bid Unit Contract AUQust, 1998 Paid Total Percent No. Quantity Price Amount Quantity Cost Previously To Date Complete I Construction Geotextil.: fbr Temporary Silt Fence L.F. 1.600 $3.00 4.800.00 $0.00 $0.00 0.00% 2 Ilale Dams EA. 7 $15.00 105.00 $0.00 $0.00 0.00% 3 Site Health and Salety L.S. L.S. $2,000 2,000.00 25% $500.00 $0.00 $500.00 25.00% 4 Mobilization L.S. L.S. $170,000 170.000.00 50.00% $85,000.00 $0.00 $85,000.00 50.00% 5 Excavation CY 81,000 $1.85 149,850.00 57,200 $105,820.00 $0.00 SI05,820.00 70.62% 6 Embankment Compaction CY 2,200 $0.50 1,100.00 $0.00 $0.00 0.00% 7 Compacted Soil Liner CY 22,400 S14.25 319.200.00 $0.00 SO.OO 0.00% 8 Bentonite TONS 3,500 S81.30 284,550.00 SO.OO SO.OO 0.00% 9 Cover Soil CY 22,400 S6.25 140,000.00 SO.OO $0.00 0.00% 10 Shoring S.F. 4,570 S1.00 4,570.00 SO.OO $0.00 0.00% II Gravel Base TONS 562 S7.75 4,355.50 I SO.OO SO.OO 0.00% 12 Crushed Surfacing Base Course TONS 2,113 $12.50 26.412.50 SO.OO SO.OO 0.00% 13 Asphalt Concrete Pavement, CI .B, 3" un TONS 400 $49.21 19.684.00 $0.00 SO.OO O.OO~. 14 Leachate Collection Pipe L.F. 1,210 $19.20 23,232.00 SO.OO SO.OO 0.00% 15 Leachate Cleanout Pipe L.F. 1,190 S8.20 9,758.00 $0.00 SO.OO 0.00% 16 Schedule A Culvert Pipe, 12 in. Diam L.F. 130 $12.00 1.560.00 SO.OO SO.OO 0.00% 17 Schedule A Culvert Pipe. 18 in. Diam L.F. 140 S20.00 2.1100.00 SO.OO SO.OO 0.00% 18 Storm Sewer, 8", N-12 L.F. 417 S20.25 8.444.25 SO.OO SO.OO 0.00% 19 Modi/)' Exitsing Catch Basin # 2 E.A. 1 S800.00 800.00 SO.OO SO.OO 0.00% 20 Catch Basin/~\'lanhole,Type 2, 48",install in-line E.A. 1 S2,250.00 2.250.00 i SO.OO SO.OO 0.00% 21 Catch Basin/Manhole.Type 2, 48" dia. E.A. I $3,500.00 3.500.00 SO.OO SO.OO 0.00% 22 Catch Basin/Manhole Type 2, 54", W/Control Device E.A. I S4,100.00 4,100.00 SO.OO SO.OO 0.00% 23 Sceding. Fertilizing, and Mulching AC 7.40 S850 6.290.00 SO.OO SO.OO 0.00% 24 60 mil Tex1ured HDPE Geomembrane SY 32.600 S3.98 129.748.00 SO.OO $0.00 0.00% 25 Oeonct Composite SY 32,600 S4.(,O 149.960.00 SO.OO SO.OO 0.00% 26 Geotex1ile Type I SY 1,600 S2.00 3,200.00 SO.OO SO.OO 0.00% 27 Geotel\1ile Type 2 SY 1,180 $2.75 3,245.00 SO.OO SO.OO 0.00% 28 24" RCI' Repair E.A. 1 S3,00O.00 3,000.00 SO.OO SO.OO 0.00% 29 Gas Header System L.F. 775 S20.00 15,500.00 SO.OO SO.OO 0.00% 30 Monitoring Runs E.A. 7 S470.00 3,290.00 SO.OO SO.OO 0.00% PALFPayEstimate .xlsPayEst#l Page 1012 ~... 'il!'>" M Oelhur Industries, Inc. 4333 Tumwater Access Rd. P.O. Box 1116 Port Angeles, WA 98362 PAY ESTIMATE NO.1 AUGUST,1998 PALF CELL # 3 EXPANSION City of Port Angeles, WA Project No. 98-04 PMX No. 23-2191-05 U-l I Pay Estimate NO.1 Project Item Description Unit Plan Bid Unit Contract AUQust.1998 Paid Total Percent No. Quantity Price Amount QuantIty Cost Previously To Date Complete WEST HAUL ROAD PAVING 31 Bale Dams EA. 2 S15.00 30.00 $0.00 $0.00 0.00'% 32 Excavation CY 1,520 $3.00 4,560.00 $0.00 $0.00 0.00% 33 Embankment Compaction CY 2,425 $0.50 1,212.50 $0.00 $0.00 0.00% 34 Gravel Base TONS 1,315 $6.75 8,876.25 $0.00 $0.00 0.00% 35 Crushed Surfacing Base Course TONS 1,521 $11.75 17,871.75 $0.00 $0.00 0.00% 36 Asphalt Treated Base, 3" Lift TONS 1,238 $43.30 53,605.40 $0.00 $0.00 0.00% 37 Schedule A Culvert Pipe, 12 in. Diam L.F. 40 $16.00 640.00 $0.00 $0.00 0.00% 38 Schedule A Culvert Pipe, 18 in. Diam L.F. 40 $20.00 800.00 $0.00 $0.00 0.00% 39 Seeding, Fertilizing, and Mulching AC 1.20 $850 1,020.00 $0.00 $0.00 0.00% ~ CHANGE ORDER ITEMS . QUANTITY COST PLAN INVOICE MA T'L. MA T'L. MATERIALS ON HAND UNIT QTY UNIT COST ON-SITE ON-SITE I I SUBTOTAL (l,tems 1-39) WASALES TAX 7.9% SUBTOTAL OF MAT'L. COSTS ON-SITE SALES TAX OF MAT'L.COSTS ON-SITE TOTAL RETAINAGE OF SUBTOTAL 5% PAY AMOUNT DUE THIS ESTIMATE The undersigned contractor certifies that to the best of his knowledge, information and belief the Work covered by this Application for Payment has been completed in accordance with the Contract Documents, that all amounts have been paid by him for work for which previous Certificates for Payment were issued and payments received from the owner, and that current payment shown is now due. Contractor: Delh~fdu~s,ln~ Date: 91q /7'8 ~ '~I ' , PALFPayEslimate .xlsPayEsl# 1 Page 2012 $206,434.28 $9,566.00 $196,868.28 $191,320.00 $15.114.28 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $191,320.00 $15,114.28 $0.00 $0.00 $206,434.28 $9,566.00 (3'") M 0.00% .- AMOUNT PAID TO DATE $196,868.28 DATE: To: FROM: SUBJECT: J ~ "P~. IQRT A.L \N 1 I=- r\: E. !L!~ E..ISt, r \ I, r j _ _ ^ 1 ~J ......../.. . WAS H I N G TON, U. S. A. CITY COUNCIL MEMO September 15, 1998 MA YOR BRAUN AND CITY COUNCIL Kay Godbey, Finance Director Ordinance authorizing the issuance and sale of water and wastewater revenue refunding bonds SUMMARY: In 1994, the City issued water and wastewater bonds in the amount of$10 million for the purpose of funding the wastewater treatment plant, compost facility, outfall reconstruction, and other water and wastewater projects. The City can now achieve a debt service savings by selling new bonds at lower interest rates and using the proceeds to defease the higher coupon debt. The average coupon, or interest rate, in today's market is approximately 5.05%, as compared to the current average coupon of 6.68%. The lower coupon rate will result in an estimated annual debt service savings of $40,000 to the water and wastewater fund. The estimated present ,:a1ue savings of this refinancing amounts to $615,000 over the life of the bonds. The 1998 bonds are amortized over a twenty-five year term. RECOMMENDATION: City Council approve the ordinance authorizing the issuance and sale of water and wastewater utility revenue refunding bonds of the city not to exceed $9.6 million dollars? ISSUE: Should City Council approve an ordinance authorizing the issuance and sale of water and wastewater utility revenue bonds of the City not to exceed $9,600,000 to refund certain outstanding water and wastewater utility revenue bonds ofthe City; authorizing appointment of an escrow agent and the execution of an escrow agreement relating to such refunding; fixing the date, form, terms, maturities and covenants of such bonds; and authorizing the public sale of such bonds? BACKGROUND / ANAI,YSIS: The 1998 annual debt service for the water and wastewater bonds amounts to over $777,000. The average interest rate that the City currently pays is 6.68% and exceeds market rates. It is to the City's advantage to refund, or refinance the 1994 water and wastewater bonds that will realize a debt service savings of approximately $40,000 per year, and, $615,000 over the life ofthe bonds. 40 --_/ The proceeds ofthe bonds are set aside in an escrow account. The escrow agent uses the proceeds to buy securities that will be sufficient to retire the 1994 bonds. This is referred to as a defeasance. The bond ordinance also authorizes the Finance Director to sell the bonds through a competitive bond sale. The competitive bond sales process allows several underwriters to compete with one another to generate the lowest interest rate and offers the City the most cost effective deal from which to choose. This method also provides evidence to the taxpayers that they have received the lowest, most cost-effective interest rate possible for the bonds. Bids will be opened on October 6, 1998. The low bid will then be recommended to City Council for consideration at the meeting that evenmg. 41 J:IMC0I22501-OO.0161MCON7EG.DOC CITY OF PORT ANGELES, WASHINGTON WATER AND WASTEWATER UTILITY REVENUE REFUNDING BONDS, 1998 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of water and wastewater utility revenue refunding bonds of the city in the principal amount of not to exceed $9,600,000 to refund certain outstanding water and wastewater utility revenue bonds of the City; authorizing appointment of an escrow agent and the execution of an escrow agreement related t6 such refunding; fixing the date, form, terms, maturities and covenants of such bonds; and authorizing the public sale of such bonds PASSED ON September 15, 1998 Prepared By: PRESTON GATES & ELLIS LLP 5000 Columbia Center 701 Fifth Avenue Seattle, Washington 98104-7078 4.~.. , l 43 Page Section 1. Section 2. Section 3. Section 4. Section 5. Section 6. Section 7. Section 8. Section 9. Section 10. Section 11. Section 12. Section 13. Section 14. Section 15. Section 16. Section 17. Section 18. Section 19. Section 20. Section 21. Section 22. Section 23. Section 24. Section 25. Exhibit A Table of Contents Definitions ......................................................................................................... 2 Compliance with Parity Conditions..................................................................... 8 Authorization and Description of Bonds ................... ..................................... ..... 9 Registration, Exchange and Payments............................................................... 10 Redemption; Purchase of Bonds ...................................................................... .14 Execution of Bonds.......................................................................................... 17 Form of Bonds .......................... .......... .................. ................................. ......... .17 Application of Bond Proceeds; Advance Refunding Account............................ 22 Rate Stabilization Fund.......... ........... ................................ .............................. .26 Revenue Fund.................................................................................................. 26 Bond Fund....................................................................................................... 27 Covenants and Agreements .............................................................................. 30 Tax Covenants; Special Designation... ..............................................................33 Arbitrage Rebate.............................................................................................. 34 Adequacy of Revenues ..................... ........................... .....................................34 Defeasance....................................................................................................... 34 Issuance of Future Parity Bonds.... ........... ............. ...........................................35 . Public Sale of Bonds ........... ..................... ........... .............................................38 Preparation of Preliminary Official Statement....... ...................... ..................... .39 Undertaking to Provide Ongoing Disclosure..................................................... 39 Municipal Bond Insurance....................................... ......................................... 43 Supplements and Amendments.. ......... ...................... ........................................ 43 Lost or Destroyed Bonds............................................. ....................................44 Severability...................................................................................................... 45 Effective Date...............................................;.................................................. 45 Form of Escrow Agreement .,44 -1- OOTOOK.OOC 98/09110 45 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, Washington, authorizing the issuance and sale of water and wastewater utility revenue refunding bonds of the city in the principal amount of not to exceed $9,600,000 to refund certain outstanding water and wastewater utility revenue bonds of the City; authorizing appointment of an escrow agent and the execution of an escrow agreement related to such refunding; fixing the date, form, terms, maturities and covenants of such bonds; and authorizing the public sale of such bonds WHEREAS, the City of Port Angeles, Washington (the "City") owns, operates and maintains a combined water and wastewater utility (the "System"); and WHEREAS, pursuant to Ordinance No. 2843 of the City, passed on October 18, 1994, ("Ordinance No. 2843"), the City issued its Water and Wastewater Utility Revenue and Refunding Bonds, 1994, under date of November 1, 1994, in the original principal amount of $10,000,000 (the "1994 Bonds"); and WHEREAS, with the consent of the State of Washington Department of Ecology ("DOE"), the 1994 Bonds were issued on a parity of lien with a loan to the City administered by DOE (loan number SRF 91001) (the "Revolving Fund Loan") and authorized by Resolution No. 9-90 of the City Council of the City (the "Council") adopted on May 1, 1990; and WHEREAS, Section 6 of Ordinance No. 2843 provides that the 1994 Bonds maturing on and after November 1, 2005 (the "Refunded Bonds") may be redeemed prior to their stated maturities on November 1, 2004 at a price of 10 1 % of par plus accrued interest to the date of redemption; and WHEREAS, Ordinance No. 2843 provides that the City may issue additional water and wastewater utility revenue bonds on a parity with the 1994 Bonds for the purpose of refunding outstanding obligations of the System if certain conditions are met; and 46 WHEREAS, Section 6 of Ordinance No. 2843 provides that the 1994 Bonds maturing on and after November 1, 2005 (the "Refunded Bonds") may be redeemed prior to their stated maturities on November 1, 2004 at a price of 101 % of par plus accrued interest to the date of redemption; and WHEREAS, Ordinance No. 2843 provides that the City may issue additional water and wastewater utility revenue bonds on a parity with the 1994 Bonds for the purpose of refunding outstanding obligations of the System if certain conditions are met; and WHEREAS, after due consideration the City Council of the City (the "Council") finds that the Refunded Bonds may be refunded by the issuance and sale of the water and wastewater utility refunding revenue bonds of the City authorized herein so that a substantial savings to the City and ratepayers of the System will be effected by the issuance of such refunding bonds and the payment and redemption of the Refunded Bonds on November 1, 2004; and WHEREAS, to effect such refunding in the manner that will be most advantageous to the City and ratepayers of the System, the Council finds it necessary and advisable to appoint an escrow agent and to purchase certain "Acquired Obligations" (hereinafter defined) out of the proceeds of sale of the refunding bonds; and September 1 0, 1998 - 2 - 47 --" WHEREAS, it appears to the Council that it is in the best interestll)f the City and ratepayers of the System that the Bonds be sold by competitive sale on the terms set forth after providing notice of such sale; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions. As used in this ordinance the following words shall have the following meanings: "Advance Refunding Account" means the special account of the City, to be held by the Escrow Agent, created pursuant to Section 8 of this ordinance. "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, calculated as of the Sinking Fund Requirement Date for such year. If the interest rate on any such bonds is other than a fixed rate, the rate applicablat the time of the computation shall be used. Soptcmbet 10, 1998 - 3- 48 "Arbitrage and Tax Certification" means the certificate executed by the Finance Director of the City pertaining to the calculation and payment of any Rebate Amount with respect to the Bonds. "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 Fund. "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 Fund" means the 1994 Water and Wastewater Utility Revenue Bond Fund created by Section 15 of Ordinance No. 2843 and referred to in Section 11 of this ordinance. ,~ "Bond Register" means the books or records maintained by the Bond Registrar for the purpose of registration of the Bonds. September 10, 1998 - 4 - 49 "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 Bonds, maintenance of 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 not to exceed$9,600,OOO principal amount of water and wastewater utility revenue refunding bonds of the City issued pursuant to this ordinance to refund the Refunded Bonds. "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, 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. Scplembcr 10, 1998 - 5 - 50 "Council" means the general legislative authority of the City as the same shall be duly and regularly constituted from time to time. "Debt Service Account" means the account of that name created in the Bond Fund by Section 15 of Ordinance No. 2843 and referred to in Section 13 of this ordinance. "DOE" means the State of Washington Department of Ecology, administrator of the Revolving Fund Loan. "DOE Loan Agreement" means the agreement between the City and DOEvith respect to the Revolving Fund Loan. "DTC" means The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, as depository for the Bonds pursuant to Section 4 hereof, or any successor substitute depository for the Bonds. "Escrow Agent" means the bank or trust company appointed by the Finance Director pursuant to Section 8 hereof. "Escrow Agreement" means the agreement between the City and the Escrow Agent with respect to the Refunded Bonds entered into pursuant to Section 8 hereof. "Financial Advisor" means Sound Finance Group, of Seattle, Washington, or any other financial advisor appointed by the Council. September 10, 1998 - 6 - 51 "Finance Director" means the duly appointed and acting Finance Director of the City or the successor of such office. "Fiscal Year" means the fiscal year used by the City at any timeAt the time of the adoption of this on:linance, 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 as Parity Bonds. "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 words "Gross Revenue" shall not include grants or bond proceeds, but shall include federal or state reimbursements of operating expenses to the extent such expenses are included as "Costs of Maintenance and Operation. " ',,~~ Scplcmbcr 10, 1m - 7 - 52 "Letter of Representations" means the Blanket Issuer Letter of Representations heretofore entered into by the City and DTC. "MSRB" means the Municipal Securities Rulemaking Board or any successor to its functions. "1994 Bonds" means the City's Water and Wastewater Utility Revenue Bonds, 1994 issued pursuant to Ordinance No. 2843 of the City under date of November 1, 1994 and currently outstanding in the principal amount of $9,575,000. "Net Revenue" means the Gross Revenue less the Costs of Maintenance and Operation. "NRMSIR" means a nationally recognized municipal securities information repository. "Parity Bonds" means the Revolving Fund Loan, the Bonds and any revenue bonds, revenue warrants or other revenue obligations of the City that have a lien on monejn the Revenue Fund to pay and 9Xure the payment of the principal thereof and interest thereon equal to the lien created on the money in such Fundto pay and secure the payment of the principal of and interest on the Revolving Fund Loan and the Bonds. "Permitted Investments" means any investments of City funds permitted under the laws of the State of Washington as amended from time to time. September 10. 1998 - 8 - 53 "Professional Utility Consultant" means the independent person(s) or frrm(s) selected by the City having a favorable reputation for skill and experience with water and wastewater systems of comparable size character to the System in such areas as are relevant to the purposes for which they are retained. !'Qualified Insurance" means 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. "Qualified Letter of CredW 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 highestr September 10, 1998 -9- 54 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 referred to in Section 9 of this ordinance. "Rebate Amount" means the amount, if any, determined to be payable with respect to the Bonds by the City to the United States of America in accordance with Section 148(t) of the Code. "Refunded Bonds" means the 1994 Bonds maturing on and after November 1, 2005. "Registered Owner" means the person in whose name a Bond is registered on the Bond Register. For so long as the City utilizes the book-entry system for the bonds, DTC shall be deemed to be the Registered Owner. "Reserve Account" means the account of that name in the Bond Fund created pursuant to Ordinance No. 2843 and referred to in Section 11 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 such bonds, (b) 10 % of the net proceeds of such series of bonds, or (c) maximum Annual Debt Service. September 1 0, 1998 - 10- 55 "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 City Treasurer pursuant to Section 2 of Ordinance No. 2843 and referred to in Section 10 of this ordinance. "Revolving Fund Loan" means the loan to the City in the original principal amount of $2,549,264 administered by DOE (loan number SRF 91001), as authorized by Resolution No. 790 of the City Council adopted on May 1, 1990. "Rule" means the Commission's Rule 15c2-12 under the SecuritieExchange Act of 1934, as the same may be amended from time to time. Sale Resolution means a resolution of the Council approving a bid for the Bonds. "Serial Bonds" means Bonds or Future Parity Bonds other than Term Bonds. "SID" means a state information depository for the State of Washington (if one is created). "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. "System" means the combined water supply and distribution and sanitary sewage collection and wastewater treatment system of the City as the same now exists and as it may hereafter be added to, improved and extended for as long as an)Of the Bonds are outstanding. The "System"h September to, 1998 - 11 - 56 shall also include any surface or storm water drainage utility of the City if the Council shall determine by ordinance to create such a utility and combine it with the System. "Term Bonds" means the Bonds identified as such, if any, in the Sale Resolution and any Future Parity Bonds identified as Term Bonds in the ordinance authorizing the issuance thereof, the payment of the principal of which is provided for by a mandatory schedule of deposits of money equal (in the aggregate) to the full principal amount of such Term Bonds, into the Bond Fund, and by a mandatory redemption schedule corresponding (as to time and amounts) to such mandatory schedule of deposits. Section 2. Compliance with Parity Conditions The Council hereby finds and determines, as required by Ordinance No. 2843, as follows: First, that the Bonds are being issued for the purpose of refunding prior to their maturity certain outstanding revenue bonds payable out of Gross Revenue; 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 Fund or the Reserve Account; Third, this ordinance provides that the principal of and interest on the Bonds are payable out of the Bond Fund and provides further that payments will be made into the Bond Fund to satisfy September 10, 1998 - 12 - 51 ~--- the Sinking Fund Requirements, if any on any Term Bonds, and into the Reserve Account to satisfy the Reserve Account Requirement, all as required by Section 13 of Ordinance No. 2843; and Fourth, the Bonds are being issued for the purpose of refunding prior to their maturity part of the outstanding Parity Bonds and the issuance of the Bonds will result in a debt service savings and does not require an increase of more than $5,000 in any fiscal or calendar year for principal of and interest on the Bonds over and above the amount required in such year for the principal of and interest on the Refunded Bonds, so in accordance with Section 21.B of Ordinance No. 2843 no certificate of a Professional Utility Consultant regarding revenues of the System is required as a condition for the issuance of the Bonds. The parity conditions contained in Ordinance No. 2843 having been complied with or assured, the payments required in this ordinance to be made out of the Revenue Fund into the Bond Fund 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 Fund to pay and socure the payment of the principal of and interest on the Revolving Fund Loan and the 1994 Bonds. September 10, 1998 - 13 - 58 Section 3. Authorization and Descrlption of Bonds. For the purpose of refunding the Refunded Bonds, the City shall issue its water andwastewater utility revenue refunding bonds in the aggregate principal amount to be established as provided in Section 18 hereof and in any event not to exceed $9,600,000_ (the "Bonds"). The Bonds shall be designated as the "City of Port Angeles, Washington, Water and Wastewater Utility Revenue Refunding Bonds, 1998," shall be in the denomination of $5,000 each,or integral multiples thereof, provided that no Bond shall represent more than one maturity, shall be fully registered as to principal and interest, and shall be numbered separately in such manner and with any additional identification as the Bond Registrar deems necessary for identification. Interest shall be payable on May 1, 1999, and semiannually thereafter on the first days of November and May of each year until the Bonds bearing such interest have been paid or their payment duly provided for. The Bonds shall be dated as provided in Section 18 hereof and shall mature on November 1 in the years and in the amounts to be established in Section 18 hereof. The Bonds will be sold at public sale as provided in this ordinance. The rate or rates of interest to be borne by the bonds shall be established by the Sale Resolution as provided herein. Bidders have the option of designating maturities of the Bonds - as mandatory redemptions (payable in such years in such amounts) of Term bonds maturing in a year or years to be September 10, 1998 - 14 - 59 specified in their bids, as provided in the Notice of Sale. Such provisions, if elected, shall also be established by the Sale Resolution. Principal of and interest on the Bonds shall be payable solely from the Bond Fund. The Bonds are not general obligations of the City or of the State of Washington or any political subdivision thereof. Section 4. Reeistration, Exchanee and Payments. (a) Re~istrar/Bond Re~ister. The City hereby adopts the system of registration specified and approved by the Washington State Finance Committee, which utilizes the fiscal agencies of the State of Washington in Seattle, Washington, and 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 books for the registration and transfer of the Bonds, which shall at all times 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. September 10, 1998 - 15 - 60 The Bond Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Bonds. The Bond Registrar may become the Registered Owner of Bonds with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law may act as depositary for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Registered Owners. (b) Re~istered Ownership. The City and the Bond Registrar, each in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof 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 describedn Section 4(g) hereof, but such registration may betransferred as herein provided. All such payments made as described in Section 4(g) shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. The City and the Bond Registrar shall be entitled to treat the person in whose name any Bond is registered as the absolute owner thereof for all purposes of this ordinance and any applicable laws, notwithstanding any notice to the contrary received by the Bond Registrar or the City. September 10, 1998 - 16 - 61 (c) DTC Acceptance/Letters of Representations. The Bonds initially issued shall be held in fully immobilized form by DTC acting as depository. To induce DTC to accept the Bonds as eligible for deposit at DTC, the City shall execute and deliver to DTC a Blanket Issuer Letter of Representations. Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds in respect of the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC partcipant of any amount in respect of the principal of or interest on the Bonds, any notice which is permitted or required to be given to Registered Owners under this ordinance (except such notices as shall be required to be given by the City to the Bond Registrar or to DTC), or any consent given or other action taken by DTC as the Registered Owner. Foo 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 hereundel9-nd 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. September 10, 1998 - 17 - 62 ~ If any Bond shall be duly presented for payment and funds have not been duly provided by the City on such applicable date, then interest shall continue to accrue thereafter on the unpaid principal thereof at the rate stated on such Bond until it is paid. (d) Use of Deposito:ry. (1) The Bonds shall be registered initially in the name of "Cede & Co.," as nominee of DTC, with one Bond maturing on each ofhe maturity dates for the Bonds of each series in a denomination corresponding to the total principal therein designated to mature on such date. 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 Council 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 (Olany substitute depository or its successor) from its functions as depository or a determination by the Council 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 ScptcmbCr 10, 1998 - 18 -h 63 ~ depository. Any such substitute depository shall be qualified under any applicable laws to provided the services proposed to be provided by it. (3) In the case of any transfer pursuant to clause (i) or (ii) of subsection (1) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together wit1ll written request on behalf of the Council, 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 Council. (4) In the event that (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 Council 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 September 10, 1998 - 19 - 64 request on behalf of the Council to the Bond Registrar, new Bonds shall be issued in such denominations and registered in the names of sucn persons as are requested in such written request. (e) Transfer or Exchan~e of Re~istered Ownership; Chan~e in Denominations. The registered ownership of any Bond may be transferred or exchanged, but no transfer of any Bond shall be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and shall authenticate and deliver, without charge to the Registered Owner or transferee therefor, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for such surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, mat4rity and interest rate, in any authorized denomination. The Bond Registrar shall not be obligated to transfer or exchange any Bondluring a period beginning at the opening September 10, 1998 - 20- 65 of business on the 15th day of the month next preceding any interest payment datand 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 shall be 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 shall be made as provided in accordance with the operational arrangements of DTC referred to in the Letter of Representations. Inthe event that the Bonds are no longer in fully immobilized form, interest on the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of thmlOnth preceding the interest payment date, and principal of the Bonds shall be payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar. Section 5. Redemption; Purchase of Bonds. (1) Optional Redemption. The Bonds maturing onor after November 1, 2009 are subject to redemption prior to maturity, at the option of the City, on or after November 1, 2008, in whole or in parton any date (and if in part with maturities to be selected by the City and by lot within a maturity), upon written notice mailed as provided herein, at the prices set forth below as a percentage of par, plus interest accrued thereon to the date fixed for redemption. Redemption Date November 1, 2008 through October 31, 2009 November 1, 2009 through October 31, 2010 November 1, 2010 and thereafter Price 101.0% 100.5 100.0 (2) MandatoI:}' RedelT\Ption. In the event that the successful bidder for the Bonds designates one or more maturities as Term Bonds, the Sale Resolution will provide for mandatory redemption of such Term Bonds in accordancewith the maturity schedule set forth in the Notice of Sale. (3) Partial RedelT\Ption; Effect of RedelT\Ption. If less than the whole ofa maturity is so called for redemption, the Bond Registrar shall choose by lot the Bonds to be redeemed. In the case of a Bond of a denomination greater that$5,000, the City shall treat each such Bond as representing such number of separate Bonds each of the denomination of $5,000 as September 10, 1998 - 22- 67 is obtained by 'dividing the actual principal amount of such Bond by $5,000. In the event that only a portion of the principal sum of a Bond is redeemed, upon surrender of the Bond at the principal office of the Bond Registrar there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. On or prior to any redemption date, thtCity shall deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date. Upon surrender of such Bonds for redemption, such Bonds shall be paid by the Bond Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. (4) Notice of Redemption. Notice of each optional redemption shall be given not less than 30 nor more than 60 days prior to the date fixed for redemption, by first class mail, postage prepaid, to the Registered Owner of any Bond to be redeemed at the address appearing on the Bond Register. September 10, 1998 - 23 - 68 All official notices of redemption shall be dated and shall state: (a) the redemption date, (b) the redemption price, (c) if less than all outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (d) that on the redemption date the redemption price will become due and payable upon each such Bond or portion thereof called for redemption, and that interest thereon shall cease to accrue from and after said date, and (e) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal offices of the Bond Registrar. The requirements of this section shall be deemed to be complied with when official notice is mailed as herein provided regardless of whether or not it is actually received by the owner of any Bond. The Bonds so called for redemption shall, on the date specified in such notice, become due and payable, and from and after the date so fixed for redemption (unless the City shall default in the payment of the Bonds so called for redemption), interest on said Bonds so called for redemption shall cease to accrue. In addition to the foregoing notice, further notice shall be given as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall Scplcmbcr 10, 1998 - 24- 69 [, in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. 1. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption plus (i) the CUSIP numbers of all Bonds being redeemed; (ii) the date of issue of the Bonds as originally issued; (iii) the rate of interest borne by each Bond being redeemed; (iv) the maturity date of each Bond being redeemed;and (v) any other descriptive information needed to identify accurately the Bonds being redeemed. 2. Each further notice of redemption shall be sent at least 35 days before the redemption date to Standard & Poor's Ratings Services and Moody's Investors Service, Inc. in New York, New York, or their business successors. 3. Each further notice of redemption shall be sent at least 30 days before the redemption date to each NRMSIR or to the MSRB and to the SID, if any, in accordance with Section 22 of this ordinance and may be sent at least 35 days before the redemption date to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds. (5) Purchase of Bonds in Qpen Market. The City hereby reserves the right whenever it has any surplus money in the Revenue Fund over and above any amounts necessary to pay necessary costs of maintaining and operating the System, costs of necessary additions, improvements and repairs thereto and extensions and replacements thereof when the same are not to be financed by the issuance of bonds or warrants, all payments required to be made into the Bond Fund and Reserve Account therein, all payments required to be made into other funds September 10, 1998 - 25 - 70 or accounts out of the Revenue Fund and all payments required for any other proper purpose in connection with the operation of the System, to use such surplus money at any time to purchase any of the Bonds and any Future Parity Bonds in the open market for retirement. Section 6. Execution of Bonds. TheBonds shall be executed on behalf of the City with the manual or facsimile signature of the Mayor of the City and attested with the manual or facsimile signature of the Clerk thereof, and the seal of the City shall be impressed or imprinted on each of the Bonds. In case any of the officers who shall have signed or attested any of the Bonds shall 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 such Bonds as shall bear thereon a Certificate of Authentication in the form set forth in Section 7 hereof, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits ofthis ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. Section 7. Form of Bonds. The Bonds shall be in substantially the following form: September 10, 1998 - 26- 71 UNITED STATES OF AMERICA NO. $9,600,000 STATE OF WASHINGTON CITY OF PORT ANGELES WATER AND WASTEWATER REVENUE REFUNDING BOND, 1998 INTEREST RATE: CUSIP NO: MATURITY DATE: REGISTERED OWNER: PRINCIPAL AMOUNT: Dollars The City of Port Angeles, Washington (the "City"), a municipal corporation of the State of Washington, for value receivedhereby promises to pay to the Registered Owner identified above on the Maturity Date identified above the Principal Amount identified 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, such interest to be payable semiannually on the first days of May and November of each year (commencing May 1, 1999) until the maturity of this bond (or if default should be made in the payment of the principal hereof when the same shall become due and payable, at the same rate of interest until the payment in full of such principal sum). The principal of and interest on this bond are payable solely out of the special fund of the City known as the "1994 Water and Wastewater Utility Revenue Bond Fund" ("Bond Fund"). Both principal of and interest on this bond are payable in lawful money of the United States of America. For so long as the bonds of this issue are in fully immobilized form, payments of principal and interest thereon shall be made as provided in accordance with the operational arrangements of DTC referred to in the BlanketIssuer Letter of Representations from the City to September 10, 1998 - 27- "",0 (~ ~. " The Depository Trust Company. In the event that the ,bonds of this issue are no longer in fully immobilized form, interest on this bond shall be paid by check or draft mailed to the Registered Owner at the address appearing, on the Bond Register on the fifteenth day of the month preceding the interest payment date, and principal of this bond shall.. be i payable upon presentation and surrender of this' bond by the Registered Owner. at the principal office 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"). Reference is hereby made to additional provisions of this bond set forth on the reverse side hereof, and such additional provisions shall for all purposes have the same effect as if set forth on this space. This bond shall not be valid or become obligatory for any purpose. or be entitled to any security or benefit under the Bond Ordinance (as hereinafter defined) 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 ~nd 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 Cityof Port Angeles, Washington, has caused this bond to be signed by the manual or facsimile signature of its Mayor, and 'attested by the manual or facsimile signature of its City Clerk, and the manual or facsimile seal of the City to be impressed or imprinted hereon, all as of the 1st day of September, 1998; CITY OF PORT ANGELES, WASHINGTON By Facsimile Signatur~] [Manual or Mayor Attest: September 10, 1998 - 28- 73 [:Manual or Facsimile Siinature] City Clerk (SEAL) September 10, 1998 - 29- 74 "r\ CERTIFICATE OF AUTHENTICATION Date of Authentication: This bond is one of the bonds described in the within mentioned Bond Ordinance and is one of the Water and Wastewater Utility Revenue Refunding Bonds, 1998 of the City of Port Angeles, Washington, dated 1, 1998. WASHINGTON STATE FISCAL AGENCY, Bond Registrar By Authorized Officer ADDITIONAL BOND PROVISIONS This bond is one of a series of bonds issued under authority of Ordinance No. _ passed by the City Council on September 15, 1998 and Resolution No. of the City, (together, the "Bond Ordinance"), for the purpose of refunding certain outstanding water and wastewater utility revenue bonds of the City. The City hereby covenants and agrees with the owner of this bond that it will keep and perform all the covenants of this bond and of the Bond.Ordinance. Reference is hereby made to the Bond Ordinance for the definitions of capitalized terms used herein. The City does hereby pledge and bind itself to set aside from Gross Revenue and to pay into the Bond Fund and the accounts created therein tIle various amounts required by the Bond September 10, 1998 - 30- 7'5 Ordinance to be paid into and maintained in such fund and accounts, all within the times provided by the Bond Ordinance. To the extent more particularly provided by theBond Ordinance, the amounts so pledged to be paid from Gross Revenue into the Bond Fund and accounts therein shall be a lien and charge thereon equal in rank: to the lien and charge upon said Revenue of the am()unts required to pay and secure the payment of a loan to the City from the State of Washington Water Pollution Control Fund, the City's outstanding Water and Wastewater UtilitY Revenue and Refunding Bonds, 1994, and any revenue bonds of the City hereafter issued on a parity with such loan, such bonds and the bonds of this issue, and superior to all other liens and charges of any kind or nature, except the Costs of Maintenance and Operation of the System. The City has further bound itself to maintain the System in good repair, working order and condition, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges in each calendar year that will make available, for the payment of the principal of and. interest on Parity Bonds outstanding as the same shall become due, Net Revenue in an amount that will be equal to at least 1.25 times Annual Debt Service for such year (after deducting Assessments actually collected for such year). The pledge of Gross Revenue and other obligations of the City under the Bond Ordinance may be discharged at or prior to the maturity or redemption of the bonds of this issue upon the making of provision for the payment thereof on the terms and conditions set forth in the Bond Ordinance. Reference is made to the Bond Ordinance for a description of the Bond Fund and the covenants and declarations of the City and other terms and conditions upon which the bonds authorized thereby have been issued and other bonds ranking on a parity therewith may hereafter be issued and outstanding. This bond is a special limited obligation of the City and is not an obligation of the State of Washington or any political subdivision thereof other than theCity, 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 this bond. September 10, 1998 - 31 - 76 The bonds maturing on or after November 1, 2009 are subject to redemption prior to maturity, at the option of the City, on or after November 1, 2008, in whole or in part on any date, (and if in part within maturities to be selected by the City and by lot within a maturity) at the prices set forth below as a percentage of par together with the interest accrued thereon to the date fixed for redemption. Redemption Date November 1, 2008 through October 31, 2009 November 1, 2009 through October 31, 2010 November 1, 2010 and thereafter Price 101.0% 100.5 % 100.0% [If not redeemed under the optional redemption provisions set forth above, the bonds maturing on November 1, 20_ shall be redeemed by lot (in such manner as the Bond Registrar shall determine) or paid at maturity, at par plus accrued interest, on 1 in years and amounts as follows: Years Amounts * Final Maturity] September 10, 1998 - 32- 77 Written notice of redemption shall be given by first class mail, postage prepaid, not less than 30 days nor more than 60 days before the redemption date to the Registered Owners of the bonds to be redeemed in whole or in part at their last addresses, if any, appearing on the Bond Register, but failure to receive any such notice shall not affect the validity of the proceedings for redemption of bonds. Notice of redemption having been given by mailing, as aforesaid, the bonds so called for redemption shall on the date specified in such notice become due and payable at the applicable redemption price herein provided, and from and after the date so fixed for redemption (unless the City shall default in the payment of the bonds so called for redemption) interest on said bonds so called for redemption shall cease to accrue. Portions of the principal sum of this bond in increments of $5,000 or any integral multiple thereof may be redeemed, and if less than all of the principal sum hereof is to be redeemed, in such case upon the surrender of this bond at the principal office of the Bond Registrar, there shall be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum hereof, fully registered bonds of like series, maturity and interest rate in any of the denominations authorized by the Bond Ordinance. Bonds are interchangeable for bonds of any authorized denomination of equal aggregate principal amount and of the same interest rate and maturity upon presentation and surrender to the Bond Registrar. The Bond Registrar shall not be required to issue, register, transfer or exchange any of the bonds during a period beginning at the opening of business on the 15th day of the month next preceding any interest payment date and endingat the close of business on such interest payment date. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR T AXPA YER IDENTIFICATION NUMBER OF TRANSFEREE September 10, 1998 - 33 - 1""18 , . ~-- (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 fot 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. Section 8. Application of Bond Proceeds; Advance Refundinl: Account There is hereby authorized and established a special account of the City to be maintained with the Escrow Agent (as hereinafter defined) to be known as the "City of Port Angeles 1998 Water and Wastewater Utility Revenue Bond Advance Refunding Account" (the "Advance Refunding Account"), which September 10, 1998 - 34- 79 account shall be drawn upon for the sole purpose of paying the principal of and interest on the Refunded Bonds and of paying costs related to issuance of the Bonds and refunding the Refunded Bonds. The proceeds of sale of the Bonds (exclusive of accrued interest thereon, which shall be paid into the Bond Fund) shall be depositedinto the Advance Refunding Account to refund the Refunded Bonds, as authorized by Ordinance No. 2843, and to pay costs of issuance of the Bonds. The call for redemption of the Refunded Bonds shall be set forth and the plan of refunding the Refunded Bonds shall be ratified and confirmed in the Sale Resolution. , Money in the Advance Refunding Account shall be used immediately upon receipt thereof to defease the Refunded Bonds and discharge the other obligations of the City relating thereto under Ordinance No. 2843 of the City, by providing for the payment of the principal of and interest on the Refunded Bonds as set forth below. The City shall defease such bonds and discharge such obligations by the use of the money in the Advance Refunding Account to purchase certain "Government Obligations" as such obligations are defined in Chapter 39.53 RCW as now or hereafter amended (which obligations so purchasedfU"e herein called "Acquired Obligations"), bearing such interest and maturing as to principal and interest in such amounts Seplembcr 10, 1998 - 35 - 80 and at such times which, together with any necessary beginning cash balance, will provide for the payment of: (a) The interest on the Refunded Bonds due and payable on and prior to November 1, 2004; and (b) The redemption price (101 % of the principal amount) payable on November 1, 2004, of the Refunded Bonds. Such Acquired Obligations shall be purchased at a yield not greater than the yield permitted by the Code and regulations relating to acquired obligations in connection with refunding bond issues. In order to carry out the advance refunding and defeasance of the Refunded Bonds, the Finance Director is hereby authorized to appoint as escrow agent a bank or trust company qualified by law to perform the duties described herein (the "Escrow Agent"). Any beginning cash balance and the Acquired Obligations shallbe irrevocably deposited with the Escrow Agent in an amount sufficient to defease and redeem the Refunded Bonds in accordance with this Section 8 and the Sale Resolution. Any amounts described in subparagraphs (a) and (b) of this Section 8 that are not provided for in full by such beginning cash balance and the purchase and deposit of the Acquired Obligations described in this section shall be provided for by the September 10, 1998 - 36- 81 irrevocable deposit of the necessary amount out of the proceeds of sale of the Bonds or any other money of the City legally available therefor with the Escrow Agent. The proceeds of the Bonds remaining in the Advance Refunding Account after acquisition of the Acquired Obligations and provision for the necessary beginning cash balance shall be utilized to pay expenses of the acquisition and safekeeping of the Acquired Obligations and the cost~f issuing the Bonds. The City may, from time to time, transfer, or cause to be transferred, from the Advance Refunding Account any money not thereafter required for the purposes set forth in subparagraphs (a) and (b) above, subject to verification in writing by an independent certified public accountant that such transfer will not result in inadequate funds being available to make the required payments therefrom. The City reserves the right to substitute other securities for the Acquired Obligations in the event it may do so pursuant to section 148 of the Code and applicable regulations thereunder, upon compliance with the conditions set forth in the Escrow Agreement. The City will take such actions as are found necessary to see that all necessary and proper fees, compensation and expenses of the Escrow Agent shall be paid when due. The proper officers and agents of the City are directed to obtain from the Escrow Agent an agreement setting forth the duties, obligations and responsibilities of the Escrow Agent in connection with the redemption and retirement of the Refunded Bonds as provided herein and stating that such September 10, 1998 - 37 - 82 provisions for the payment of the fees, compensation and expenses of such Escrow Agent are satisfactory to it. Such agreement shall be in substantially the form set forth in Exhibit\. attached to this ordinance and incorporated herein by this reference. The Mayor or her designee is authorized and directed to execute and deliver such agreement on behalf of the City. In the Sale Resolution, the Council shall set forth its findings of savings and defeasance with respect to the Refunded Bonds. Section 9. Rate Stabilization Fund. Pursuant to Section 13 of Ordinance No. 2843~ 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. In accordance with the provisions of Section 14 of Ordinance No. 2843 and Section 10 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. Section 10. Revenue Fund. 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 September 10, 1998 - 38 - 83 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 Fund to pay the interest on any Parity Bonds; THIRD, to make all payments required to be made into the Bond Fund to pay the maturing principal of any Serial Bonds and to make all payments required to be made into the Bond Fund 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) in connection with Qualified Insurance or a Qualified Letter of Credit; provided that if theres not sufficient money to make all payments under reimbursement agreements the payments will be made on a pro rata basis; September 10, 1998 - 39- 84 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 by the DOE Loan Agreement to be made into the Emergency Repair and Replacement Fund of the System; SEVENTH, 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 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 EIGHTH, to retire by redemption or purchase in the open marketny outstanding water and wastewater revenue bonds, water and wastewater revenue warrants or other water and wastewater revenue obligations of the City, to make necessary additions, betterments, improvements and repairs to or extensions and replacements of the System, to make deposits into the Rate Stabilization Fund, orfor any other lawful City purposes. Section 11. Bond Fund. Pursuant to Section 15 of Ordinance No. 2843, there has heretofore been created in the office of the City Treasurer a fund othe City known as the "1994 Sc:ptcmber 10, 1998 - 40- 85 Water and Wastewater Utility Revenue Bond Fund" (the "Bond Fund"), which fund 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 theBond Fund shall be kept separate and apart from all other funds and accounts of the City. A. Debt Service Account. A special account known as the Debt Service Account has been created in the Bond Fund 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. The City covenants and agrees that in the event it issues any future Parity Bonds that are Tm I 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 September 10, 1998 - 41 - 86 therefor in such account to amortize the principal of future Parity Bonds which are Term Bonds on or before the maturity date thereof. B. Reserve Account. A Reserve Account has been created in the Bond Fund 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 pay into the Reserve Account from Bond proceeds a sum equal to the Reserve Account Requirement for the Bonds or will satisfy such requirement by obtaining Qualified Insurance. The City further covenants and agrees that in the event it issues any Future Parity Bonds it will provide in each ordinance authorizing the issuance of such Future Parity Bonds that on or prior to the date of issuance of such Future Parity Bonds money shall 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 QualifiedLetter 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 September 10, 1998 - 42- 87 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 Fund, 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 irterest 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. In the event 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. Seplember 10, 1998 - 43- 88 In the event there shall be 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 urfrom the Reserve Account by the withdrawal of money therefrom and by the sale or redemption of obligations held iDhe 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 oISuch 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 10 of this ordinance. C. Lien of Bond Fund. 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 ScpIcmbcr 10, 1998 - 44- 89 Revenue Fund into the Bond Fund. 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 Revolving Fund Loan 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 Fund. 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 12. Covenants and Aa=reements. The City hereby covenants with the owner of each of the Bonds for as long as any of the same remain outstanding as follows: A. Rates and Chat:ies. The City covenants thatit will establish, maintain and collect lawful rates and charges for the use of the services and facilities of the System, and shall 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 Scptcmbcr 10, 1998 - 45- 90 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, including payments other than debt service required under the DOE Loan Agreement; and, together with Assessments actually collected, (b) to pay the principal of and interest on all outstanding Parity Bonds as and when the same become due and payable, to make all payments required to be made into the Bond Fund 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 calendar 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 calendar year any amount withdrawn from the Rate Stabilization Fund and deposited in the Revenue Fund. There shall be subtracted from Net Revenue for any calendar year any amounts in such year withdrawn from the Revenue Fund and deposited into the Rate Stabilization Fund in such calendar year. September 10, 1998 - 46- 91 B. Maintenance of System. The City covenants that it 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 Di&position of the System. The City will not selhr otherwise dispose of the System in its entirety unless simultaneously with such sale or other disposition, provision is made for the payment into the Bond Fund of cash or "Government Obligations," as now or hereafter defined in RCW Chapter 39.53, as amended, or its successor statute, if any, sufficient together with interest to be earned thereon to pay the principal of and interest on the then outstanding Parity Bonds, nor will it sell or otherwise dispose of any part of the useful operating properties of the System unless such facilitiesare replaced or provision is made for payment into the Bond Fund 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 Fund 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 September 10, 1998 - 47- 92 J (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 Fund. 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 which shall have 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 Fund. D. Collection of Assessments. The City shall promptly collect all Assessments levied in any utility local improvement district nowor hereafter created to secure the payment of the principal of and interest on the Parity Bonds and shall pay the same into the Bond Fund 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 September 10, 1998 - 48 - 93 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 andnterest 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. E. Books and Accounts. The City covenants that it 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, said statement to be mailed to any owner of Parity Bonds upon request. F. Insurance. The City covenants that it 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 deemed necessary and advisable by the Council, institute or continue a self-insurance program Scptcmbcr 10, 1998 - 49- 94 with respect to any or all of the aforementioned risks. The premiums paid Jor all such insurance shall be regarded and paid as a Cost of Maintenance and Operation. G. Delinquencies. The City covena.nts that it 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 13. Tax Covenants; Special Desienation. The City will not make any use of the proceeds of the Bonds or any other money or obligations held under this ordinance for any purpose, nor shall the City take any other action, that would cause any Bond to .be (i) an "arbitrage bond" within the meaning of Section 148 of the Code and the applicable regulations thereunder, or (ii) a "private activity bond" under Section 141 of the Code and the applicable regulations thereunder. Section 14. Arbitra&e Rebate. The City covenants and agrees to pay the Rebate Amount, if any, to the United States of America at the times and in the amounts necessary to meet the requirements of the Code to maintain the federal income tax exemption for interest payments on the Bonds, in accordance with the Arbitrage and Tax Certification. Scptcmbor 10, 1998 - 50- 95 Section 15. AdeQJ1acy of Revenues. The Council hereby declares that in fixing the amounts to be paid into the Bond Fund 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 Fund 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 16. Defeasance. In the event that money and/or Government Obligations (as defined in Chapter 39.53 RCW, as amended, or its successor statute), 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 effectsuch redemption and retirement and such money and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for, and the owners of such Bonds shall 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 such Bonds shall be deemed not to be outstanding hereunder. Within 30 days of any defeasance of Bonds, the City shall provide Seplembcr 10, 1998 - 51 - 96 I ~ '\ notice of defeasance of Bonds to registered owners and to each NRMSIR and SID, if any, in accordance with Section 20 hereof. Section 17. 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. That it will not issue any bonds with a lien on Gross Revenue superior to the lien on such revenues of the Bonds. 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 Fund 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 Fund September 10, 1998 - 52- 97 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 Fund 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 Parit)Bonds, the ordinance authorizing such Future Parity Bonds shall require that such special assessments be paid into the Bond Fund. (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 shall require such special assessments to be used for the refunding or paid into the Bond Fund. (4) The principal of and interest on the Future Parity Bonds shall be payable out of the Bond Fund, and the ordinance authorizing their issuance shall further provide for payments into the Bond Fund to satisfy the Sinking Fund Requirement and .. Seplembcr 10, 1998 - 53- 98 payments into the Reserve Account to satisfy the Reserve Account Requirement, all as required by Section 11 of this ordinance. (5) Prior to the delivery of any Future Parity Bonds, the City shall have on file in the office of the City Clerk 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 thtrate 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. The Adjusted Net Revenue shall be the Net Revenue for a period of any 12 consecutive months out of the 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 September 10, 1998 - 54- 99 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 12-month period, had been in force during the full 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 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 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 City Treasurer showing income and expenses for the period upon which the same is based. September 10, 1998 - 55 - 100 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. 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 and the issuance of such refunding Future Parity Bonds will result in a debt service savings and does not require an increase of more than $5,000 in any fiscal or calendar year for principal of and interest on such refunding Future Parity Bonds over and above the amount required in such year for the principal of and interest on the bonds being refunded thereby, the condition stated in subsection A(5) of this section need not be met. C. 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 Fund and the Reserve Account. Section 18. Public Sale of Bonds The Bonds shall be sold by public sale at _ o'clock A.M., Seattle time, on October 6, 1998, or at such other time and date as the Finance Director shall direct. The sale shall be September 10, 1998 - 56- 101 conducted substantially in accordance with the provisions of this Section 18 and the Notice of Bond Sale. The Financial Advisor and Finance Director are hereby authorized and directed to prepare an official Notice of Bond Sale, which Notice shall establish the date, principal amounts, and maturity schedule for the Bonds and other terms of the Bonds consistent with this ordinance, so long as the aggregate principal amount of the Bonds does not exceed $9,600,000. The Notice shall be ratified and confirmed by the Sale Resolution. The official Notice of Sale or an abridged form thereof shall be published in such newspapers or financial journals as may be deemed desirable or appropriate by the Financial Advisor to the City. The Bonds shall be sold at a price not less than 98 % of the principal amount thereof plus accrued interest to the date of delivery and the bids shall be for no less than all of the Bonds. The Bonds shall be sold to the bidder offering to purchase them at the lowest true interest cost to the City. Bids for the purchase of the Bonds shall be received on behalf of the City by the Financial Advisor at the offices of Preston Gates & Ellis LLP, bond counsel to the City, located at 701 Fifth Avenue (Floor 50), Seattle, Washington, until the time set forth above, whereupon said bids shall be opened, read and mathematically verified. Such bids shall then be considered and -: ". "t September 10, 1998 - 57 - 102 acted upon by the Council in an open public meeting. The Council reserves the right to reject any and all bids for the Bonds. The Council by the Sale Resolution shall accept a pid for the Bonds and establish the date, principal amount, maturity schedule, interest rates, and other terms of the Bonds, call the Refunded Bonds for redemption and ratify and confirm the plan of refunding the Refunded Bonds. All bids shall be accompanied by surety bond or cashier's or certified check, as a good faith deposit, made payable to the order of the City, in an amount to be determined by the Finance Director in consultation with the Financial Advisor. The good faith check or surety bond of the successful bidder shall be security for the performance of its bid and shall be held as liquidated damages in case the successful bidder fails to take up and pay for the Bonds within 45 days if tendered for delivery. The City reserves the right to waive any irregularity or informality in any bid. Following the sale of the Bonds, the City shall cause definitive Bonds to be prepared, executed and delivered, which Bonds shall be lithographed or printed with engraved or lithographed borders. September 10, 1998 - 58 -e 103 The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bonds to the successful bidder and for the proper use and application of the proceeds of such sale. Section 19. Preparation of PreliminaQ' Official Statement. The Financial Advisor and Finance Director are hereby authorized to compile the materials necessary and prepare the Preliminary Official Statement in conjunction with the offer of the Bonds. The Council will consider and be prepared to deem the Preliminary Official Statement "final," pursuant to Securities and Exchange Commission Rule 15c2-12, in the Sale Resolution. Section 20. Undertakina= to Provide Ona=oina= Disclosure. The City will provide for compliance with Section b(5) of the Rule by committing to a written undertaking in the Bond Sale Resolution. Section 21. Municipal Bond Insurance. In the Sale Resolution, the Council may provide for the Bonds to be insured by a municipal bond insurance company under terms and conditions to be set forth therein. Section 22. Supplements and Amendments. September 10, 1998 - 59- 104 L 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 anyone 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. September 10, 1998 - 60- 105 Any such supplemental ordinance of the Council may be adopted without the consent of the owners of any Bonds at any time outstanding, notwithstanding any of the provisions of subsection B of this section; provided, however, that the City shall obtain an opinion of nationally recognized bond counsel to the effect that such supplemental ordinance complies with 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 September 10, 1998 - 61 - lJIDi (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 23. Lost or Destroyed Bonds. In case any Bonds shall be 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 upon the owner paying the expenses and charges of the Bond Registrar and the City in connection therewith and upon his or her filing with the Bond September 10, 1998 - 62- 107 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 upon furnishing the City and the Bond Registrar with indemnity satisfactory to both. Section 24. Severability. If anyone or more of the covenants and agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements in this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of any Bonds. Section 25. Effective Date. This ordinance shall become effective five days from and after its passage, approval and publication. Scplemher 10, 1998 - 63 - 108 PASSED by the City Council of the City of Port Angeles, Washington, at a regular meeting of said Council held this ISh day of September, 1998. CITY OF PORT ANGELES, WASHINGTON By Mayor Attest: By City Clerk (SEAL) Seplcmhcr 10, 1998 - 64- 109 EXHIBIT" A" ESCROVVAGREEMENT entered into as of the day of and between the City of Port Angeles, , VV ashington THIS ESCROVV AGREEMENT, made and , 1998 (the "Agreement"), by VVashington (the "City"), and (the "Escrow Agent"); VVITNESSETH: VVHEREAS, the City, pursuant to Ordinance No. 2843 of the City, passed on October 18, 1994, issued and sold its $10,000,000 VVater and VVastewater Utility Revenue and Refunding Bonds, 1994 (the "1994 Bonds"); and VVHEREAS, the City by Ordinance No. _, passed on September 15, 1998 and Resolution No. _ of the City Council, adopted on , 1998 (together, the "Bond Ordinance"), has determined to refund the outstanding 1994 Bonds maturing on and after November 1, 2005 (the "Refunded Bonds"), by the issuance of its VVater and VVastewater Utility Revenue Refunding Bonds, 1998 (the "Refunding Bonds"); and ! VVHEREAS, the Escrow Agent has reviewed the Bond Ordinance and this Agreement, and is willing to serve as Escrow Agent hereunder; and VVHEREAS, , , Certified Public Accountants, of Seattle, VVashington, have prepared a verification report dated , 1998 (the "Verification Report") relating to the source and use of funds available to accomplish the refunding of the Refunded Bonds, the investment of such funds and the adequacy of such funds and investments to provide for the payment of the debt service due on the Refunded Bonds; and VVHEREAS, the City by the Bond Ordinance has duly authorized the execution and delivery of this Agreement and has designated the Refunded Bonds for redemption prior to their scheduled maturity dates; and ( Exhibit "A" - Page 1 110 WHEREAS, the City desires that, concurrently with the delivery of the Refunding Bonds to the purchasers thereof, the proceeds of the Refunding Bonds, together with certain other available funds of the County, shall be applied to purchase certain direct obligations of the United States of America hereinafter defined as the "Escrowed Securities" for deposit to the credit of the Refunding Account created pursuant to the term!Df this Agreement and to establish a beginning cash balance (if needed) in such Refunding Account; and .,,/' WHEREAS, the Escrowed Securities shall mature and the interest thereon shall be payable at such times and in such amounts so as to provide money that, together with cash balances from time to time on deposit in the Refunding Account, will be sufficient to pay: (a) the interest on the Refunded Bonds due and payable on and prior to November 1, 2004; and (b) the redemption price (101 % of the principal amount) payable on November 1, 2004, of the Refunded Bonds; NOW, THEREFORE, in consideration of the mutual undertakings, promises and agreements herein contained, the sufficiency of which hereby are acknowledged, and to secure the full and timely payment of the principal of and interest on the Refunded Bonds, the City and the Escrow Agent mutually undertake, promise and agree for themselves and their respective representatives and successors, as follows: Article 1. Definitions. Section 1.1. Definitions. Unless the context clearly indicates otherwise, the following terms shall have the meanings assigned to them below when they are used in this Agreement: "Escrowed Securities" means the noncallable Government Obligations described in Appendix A attached to this Agreement, or cash or other noncallable obligations substituted therefor pursuant to Section 4.1 of this Agreement. Exhibit" A" - Page 2 111 "Government Obligations" . means direct, noncallable (a) United States Treasury Obligations, (b) United States Treasury Obligations - State and Local Government Series ("SLGS"), (c) non- prepayable obligations that are unconditionally guaranteed as to full and timely payment of principal and interest by the United States of America or (d) REFCORP debt obligations unconditionally guaranteed by the United States. Securities described in (c) shall be limited to those securities that are defined as government obligations by Section 39.53.010(9), Revised Code of Washington. "Paying Agent" means the fiscal agency of the State of Washington, as the paying agent for the Refunded Bonds. "Refunding Account" means the City of Port Angeles 1998 Water and Wastewater Utility Revenue Bond Advance Refunding Account authorized by the Bond Ordinance to be established, held and administered by the Escrow Agent pursuant to the provisions of this Agreement. Exhibit "A" - Page 3 11~~ -----' Section 1.2. Other Definitions. The terms "Agreement," "City," "Escrow Agent," "Bond Ordinance," "Verification Report," "Refunded Bonds," and "Refunding Bonds" when they are used in this Agreement, shall have the meanings assigned to them in the preamble to this Agreement. All other capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them by the Bond Ordinance. Section 1.3. Intet:Pretations. The titles and headings of the articles and sections of this Agreement have been inserted for convenience and reference only and are not to be considered a part hereof and shall not in any way modify or restrict the terms hereof. This Agreement and all of the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to achieve the intended purpose of providing for the refunding of the Refunded Bonds in accordance with applicable law. Article 2. D~osit of Funds and Escrowed Securities Section 2.1. Deposits in the Refundinl: Account. Concurrently with the sale and delivery of the Refunding Bonds the City shall deposit, or cause to be deposited, with the Escrow Agent, for deposit in the Refunding Account, $ of the proceeds of the Refunding Bonds, of which $ shall be applied to purchase the initial Escrowed Securities, $_ to establish a beginning cash balance, am$ to pay the costs of issuance described in Appendix C attachedhereto, and the Escrow Agent shall, upon the receipt thereof, acknowledge such receipt to the City in writing. Article 3. Creation and Operation of Refundin~ Account Section 3.1. Refundinl: Account. The Escrow Agent has created on its books a special trust fund and irrevocable escrow to be known as the Refunding Account (the "Refunding Account"). The Escrow Agent hereby agrees that upon receipt thereof it will deposit to the credit of the Refunding Account the funds and the Exhibit "A" - Page 4 113 Escrowed Securities described in Section 2.1 hereof. Such deposit, all proceeds therefrom, and all cash balances from time to time .on deposit therein (a) shall be the property of the Refunding Account, (b) shall be applied only in strict conformity with the terms and conditions of this Agreement, and (c) are hereby irrevocably pledged to the payment of the principal of and interest on the Refunded Bonds, which payment shall be made by timely transfers of such amounts at such times as are provided for in Section 3.2 hereof. When the final transfers have been made for the payment of such principal of and interest on the Refunded Bonds, any balance then remaining in the Refunding Account shall be transferred to the City and the Escrow Agent shall thereupon be discharged from any further duties hereunder. Section 3.2. Payment of Principal and Interest. The Escrow Agent is hereby irrevocably instructed to transfer to the Paying Agent from the cash balances from time to time on deposit in the Refunding Account, the amounts required to pay the principal of the Refunded Bonds at their redemption date and interest thereon to such redemption date in the amounts and at the times shown in Appendix B attached hereto. Section 3.3. Sufficiency of Refundini Account. The City represents that, based upon the information provided in thtYerification Report, the successive receipts of the principal of and interest on the Escrowed Securities will assure that the cash balance on deposit from time to time in the Refunding Account will be at all times sufficient to provide money for transfer to the Paying Agent at the times and in the amounts required to pay interest due and payable on the Refunded Bonds on and prior to their respective redemption dates, and the redemption price for the Refunded Bonds payable onmch redemption dates, all as set forth in the recitals of this Agreement. If, for any reason, at any time, the cash balances on deposit or scheduled to be on deposit in the Refunding Account shall be insufficient to transfer the amounts required by the Paying Agent to make the payments described in Section 3.2. hereof, th€ity shall timely deposit in the Refunding Account, from any funds lawfully available therefor, additional funds in the amounts required to make such payments. Notice of any such insufficiency shall be given promptly as hereinafter provided, but the Escrow Agent shall not in any manner be responsible for any , Exhibit "A" - Page 5 114 insufficiency of funds in the Refunding Account or the City's failure to make additional deposits thereto. Section 3.4. Trust Fund. The Escrow Agent shall hold at all times the Refunding Account, the Escrowed Securities and all other assets of the Refunding Account, wholly segregated from all other funds and securities on deposit with the Escrow Agent; it shall never allow the Escrowed Securities or any other assets of the Refunding Account to be commingled with any other funds or securities of the Escrow Agent; and it shall hold and dispose of the as~ets of the Refunding Account only as set forth herein. The Escrowed Securities and other assets of the Refunding Account shall always be maintained by the Escrow Agent as trust funds for the benefit of the owners of the Refunded Bonds; and a special account thereof shall at all times be maintained on the books of the Escrow Agent. The owners of the Refunded Bonds shall be entitled to the same preferred claim and first lien upon the Escrowed Securities, the proceeds thereof, and all other assets of the Refunding Account to which they are entitled as owners of the Refunded Bonds. The amounts received by the Escrow Agent under this Agreement shall not be considered as! banking deposit by the City, and the Escrow Agent shall have no right to title with respect thereto except as a trustee and Escrow Agent under the terms of this Agreement. The amounts received by the Escrow Agent under this Agreement shall not be subject to warrants, drafts or checks drawn by the City or, except to the extent expressly herein provided, by the Paying Agent. Article 4. Limitation on Investments Section 4.1. Investments: Substitution of Securities. Except for the initial investment in the Escrowed Securities, and except as provided in this Section 4.1, the Escrow Agent shall not have any power or duty to invest or reinvest any money held hereunder, or to make substitutions of the Escrowed Securities, or to sell, transfer, or otherwise dispose of the Escrowed Securities. At the written request of the City,' and upon compliance with the conditions hereinafter stated, the Escrow Agent shall utilize cash balances in the Refunding Account, or. sell, transfer, Exhibit "A" - Page 6 115 otherwise dispose of or request the redemption of the Escrowed Securities and apply the proceeds therefrom to purchase Refunded Bonds or Government Obligations that do not permit the redemption thereof at the option of the obligor. An)Such transaction may be effected by the Escrow Agent only if (a) the Escrow Agent shall have received a written opinion from a firm of certified public accountants that such transaction will not cause the amount of money and securities in the Refunding Account to be reduced below an amount sufficient to provide for the full and timely payment of principal of and interest on all of the remaining Refunded Bonds as they become due, taking into account any optional redemption thereof exercised by the City in connection with such transaction; (b) the Escrow Agent shall have received. the unqualified written legal opinion of the County's bond counselor tax counsel to the effect that such transaction will not cause any of the Refunding Bonds or Refunded Bonds to be an "arbitrage bond" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, and (c) such transaction is approved by an ordinance duly passed by the City Council. Article 5. Application of Cash Balances Section 5.1. In General. Except as provided in Sections 3.2 and 4.1 hereof, no withdrawals, transfers, or reinvestment shall be made of cash balances in the Refunding Account. Cash balances. shall be held by the Escrow Agent in U. S. currency and as cash balances as shown on the books and records of the Escrow Agent and shall not be reinvested by the Escrow Agent; provided, however, a conversion to currency shall not be required (i) for so long as the Escrow Agent's internal rate of return does not exceed %, or (ii) if the Escrow Trustee's internal rate of return exceeds %, the Escrow Agent receives a letter of instructions, accompanied by the opinion of the City's bond counsel approving the assumed reinvestment of such proceeds at such higher yield. Exhibit "A" - Page 7 116 r Article 6. Redemption of Refunded Bonds Section 6.1. Call for Redemption. The City has, pursuant to the Bond Ordinance, irrevocably called the Refunded Bonds for redemption on their earliest redemption date, as shown in the Verification Report. Section 6.2. Notice of Redemption. The Escrow Agent agrees to give notice of the redemption of the Refunded Bonds, or to notify the Paying Agent to give such notice, pursuant .to the terms of the resolutions authorizing the issuance of the Refunded Bonds. The Escrow Agent hereby certifies that it has made provision satisfactory and acceptable to it for thegiving of notice of redemption of the Refunded Bonds. Article 7. Records and Reports Section 7.1. Records. The Escrow Agent will keep books of record and account in which complete and accurate entries shall be made of all transactions relating to the receipts, disbursements, allocations and application of the money and Escrowed Securities deposited to the Refunding Account and all proceeds thereof, and such books shall be available for inspection during business hours and after reasonable notice. Section 7.2. Reports. While this Agreement remains in effect, the Escrow Agent annually shall prepare and send to the City a written report summarizing all transactions relating to the Refunding Account during the preceding year, including, without limitation, credits to the Refunding Account as a result of interest payments on or maturities of the Escrowed Securities and transfers from the Refunding Account for payments on the Refunded Bonds or otherwise, together with a detailed statement of all Escrowed Securities and the cash balance on deposit in the Refunding Account as of the end of such period. Exhibit "A" - Page 8 117 Article 8. Concernin~ the Payin~ A~ent and Escrow A~ent Section 8.1. Representations. The Escrow Agent hereby represents that it has all necessary power and authority to enter into this Agreement and undertake the obligations and responsibilities imposed upon it herein and that it will carry out all of its obligations hereunder. Section 8.2. Limitation on Liability . The liability of the Escrow Agent to transfer funds for the payment of the principal of and interest. on the Refunded Bonds shall be limited to the proceeds of the Escrowed Securities and the cash balances from time to time on deposit in the Refunding Account. Notwithstanding any provision contained herein to the contrary, the Escrow Agent shall have no liability whatsoever for the insufficiency of funds from time to time in the Refunding Account or any failure of the obligors of the Escrowed Securities to make timely payment thereon, except for the obligation to notify the City promptly of any such occurrence. The recitals herein and in the proceedings authorizing the. Refunding Bonds shall be taken as the statements of the City and shall not be considered as made by, or imposing any obligation or liability upon, the Escrow Agent. The Escrow Agent is not a party to the proceedings authorizing the Refunding Bonds or the Refunded Bonds and is not responsible for nor bound by any of thtprovisions thereof (except to the extent that the Escrow Agent may be a place of payment and paying agent and/or a paying agent/registrar therefor). In its capacity as Escrow Agent, it is agreed that the Escrow Agent need look only to the terms and provisions of this Agreement. The Escrow Agent makes no representations as to the value, conditions or sufficiency of the Refunding Account, or any part thereof, or as to the title of the City thereto, or as to the security afforded thereby or hereby, and the Escrow Agent shall not incur any liability or responsibility in respect to any of such matters. Exhibit "A" - Page 9 118 L It is the intention of the parties hereto that the Escrow Agent shall never be required to use or advance its own funds or otherwise incur personal financial liability in the performance of any of its duties or the exercise of any of its rights and powers hereunder. The Escrow Agent shall not be liable for any action taken or neglected to be taken by it in good faith in any exercise of reasonable care and believed by it to be within the discretion or power conferred upon it by this Agreement, nor shall the Escrow Agent be responsible for the consequences of any error of judgment; and the Escrow Agent shall not be answerable except for its own action, neglect or default, nor for any loss unless the same shall have been through its negligence or want of good faith. Unless it is specifically otherwise provided herein, the Escrow Agent has no duty to determine or inquire into the happening or occurrence of any event or contingency or the performance or failure of performance of the City witlTespect to arrangements or contracts with others, with the Escrow Agent's sole duty hereunder being to safeguard the Refunding Account, to dispose of and deliver the same in accordance with this Agreemellt. If, however, the Escrow Agent is called upon by the terms of this Agreement to determine the occurrencef any event or contingency, the Escrow Agent shall be obligated, in making such determination, only to exercise reasonable care and diligence, and in event of error in making such determination the Escrow Agent shall be liable only for its own misconduct or its negligence. In determining the occurrence of any such event or contingency the Escrow Agent may request from the City or any other person such reasonable additional evidence as the Escrow Agent in its discretion may deem necessary to determine any fact relating to the occurrence of such event or contingency, and in this connection may make inquiries of, and consult with, among others, the City at any time. , Exhibit "A" - Page 1 0 119 I Section 8.3. Compensation. The City shall pay to the Escrow Agent $ for services rendered by it pursuant to the provisions of this Agreement, and such payment is inclusive of all fees, compensation and expenses of the Escrow Agent; provided, however, that the Escrow Agent shall be separately compensated for services performed in connection with any substitution of securities pursuant to Section 4. 1 of this Agreement. In the event that the Escrow Agent renders any service at the request of the City that is not provided for in this Agreement, or the Escrow Agent is made a party to or intervenes in any litigation pertaining to this Agreement or institutes interpleader proceedings relative hereto, the Escrow Agent shall be reasonably compensated by the City for such extraordinary services and reimbursed for all fees, costs, liability and expenses (including reasonable attorneys' fees) occasioned thereby. The Escrow Agent hereby agrees that in no event shall it ever assert any claim or lien against the Refunding Account for any fees for its services, whether regular or extraordinary, as Escrow Agent, or in any other capacity, or for reimbursement for any of its expenses as Escrow Agent or in any other capacity. I Section 8.4. Successor Escrow Agent. The obligations assumed by the Escrow Agent pursuant to this Agreement may be transferred by the Escrow Agent to a successor; provided that the Escrow Agent has presented evidence satisfactory to the City and its bond counsel that the successor meets the requirements of RCW Chapter 39.53, as now in effect or hereafter amended, and has assumed all the obligations of the Escrow Agent under this Agreement, and that all the Acquired Obligations and money held by the Escrow Agent pursuant to this Agreement have been duly transferred to such successor. Any corporation or association into which the Escrow Agent may be merged or converted, or resulting from any merger or conversion, or to which. the Escrow Agent may sell or transfer all or substantially all of its corporate trust business shall be the successor to such Escrow Agent without the execution of filing of any paper or any further act, anything herein to the contrary notwithstanding. Exhibit "A" - Page 11 120 Exhibit "A" - Page 12 121 Article 9. Miscellaneous Section 9.1. Notice. Any notice, authorization, request, or demand required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when mailed by registered or certified mail, postage prepaid addressed to the City or the Escrow Agent at the address shown below. The United States Post Office registered or certified mail receipt showing delivery of the aforesaid shall be conclusive evidence of the date and fact of delivery. Any party hereto may change the address to which notices are to be delivered by giving to the other parties not less than ten days prior notice thereof. County: City of Port Angeles, Washington 321 East Fifth Port Angeles, W A 98362 Attention: Finance Director Escrow Agent: Attention: Section 9.2. Termination of Re~onsibilities. Upon the taking of all the actions as described herein by the Escrow Agent, the Escrow Agent shall have no further obligations or responsibilities hereunder to the City, the owners of the Refunded Bonds or to any ot~er person or persons in connection with this Agreement. Section 9.3. Bindin~ A~reement. This Agreement shall be binding upon the City and.. the Escrow Agent and their respective successors and legal representatives, and shall inure solely to the benefit of the owners of the Exhibit "A" - Page 13 122 Refunded Bonds, the City, the Escrow Agent and their respective successors and legal representatives. Section 9.4. Severability. In case anyone or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid or.illegal or unenforceable provision had never been contained herein. Section 9.5. WashinlIton Law Governs. This Agreement shall be governed exclusivelyby the provisions hereof and by the applicable laws of the State of Washington. Section 9.6. Time of the Essence. Time shall be of the essence in the performance of obligations from time to time imposed upon the Escrow Agent by this Agreement. Section 9.7. Notice to Rating AlIencies. In the event that this agreement or any provision thereof is severed, amended orevoked, the City shall provide written notice of such severance, amendment or revocation to: , Standard & Poor's Ratings Services Attn: Public Finance Rating Desk/Refunded Bonds 25 Broadway New York, New York 10004 Moody's Investors Service Attn: Public Finance Rating Desk/Refunded Bonds 99 Church Street Exhibit "A" - Page 14 123 New York, New York 10007 Section 9.8. Amendments. This Agreement. shall not be amended except to cure any ambiguity or formal defect or omission in this Agreement. No amendment shall be effective unless the same shall be in writing and signed by the parties thereto. No such amendment shall adversely affect. the rights of the holders of the Refunded Bonds. No such amendment shall be made without first receiving written confirmation from the rating agencies (if any) that have rated the Refunded Bonds that such administrative changes will not result in a withdrawal or reduction of its ra!ing then assigned to the Refunded Bonds. If this Agreement is amended, prior written notice and copies of the proposed changes shall be given to the rating agencies that have rated the Refunded Bonds. Exhibit "A" - Page 15 124 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement, all as of the date and year first above written. CITY OF PORT ANGELES, WASHINGTON By Mayor r as Escrow Agent 1, By Trust Officer Appendix A Appendix B Appendix C Appendix D Description of the Escrowed Securities Schedule of Payments on the Refunded Bonds Expenses to be Paid at Closing Notice of Redemption Exhibit "A" - Page 16 125 "~'" ,'c' APPENDIX A [INSERT HERE A COpy OF THE DESCRIPTION OF THE ESCROW SECURITIES FROM THE VERIFICATION REPORT.] Appendix A - Page 1 September 10, 1998 126 APPENDIX B [INSERT HERE A COpy FROM THE VERIFICATION REPORT OF THE SCHEDULE OF PAYMENTS TO BE MADE ON THE REFUNDED BONDS.] Appendix B - Page 1 DOTOOK.DOC Sept=bcr 10, 1998 127 Expenses to be paid at Closing: Description Escrow Verification Fee Escrow Agent Fee Bond Counsel Fee Financial Advisor Official Statement Printing and Mailing Rating Agency--New Bonds Rating Agency-- Refunded Bonds Total Appendix C - Page 1 , APPENDIX C Payee Preston Gates & Ellis LLP Seattle-Northwest Securities Corporation DOTOOK.DOC Amount $ $ Seplcmbcr 10, 1998 128 CERTIFICATE OF CITY CLERK I DO HEREBY CERTIFY that I am the duly chosen, qualified and acting Clerk of the City of Port Angeles, Washington (the "City"), and keeper of the records of the City Council; and I HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance No. of the City (the "Ordinance"), as finally passed at a regular meeting of the City Council held on the 15th day of September, 1998 and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper n()tice of such meeting was given; that a quorum was present throughout the meeting and a legally sufficient number of members of the City Council voted in the proper manner for the passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City this 15th day of September, 1998. ' City Clerk (S E AL) 129 OOTOOKOOC 98109/10 DATE: To: FROM: SUBJECT: " I /" .------ ~ORTA.N ELES WAS H I N G TON, U. S. A. CITY COUNCIL MEMO September 15, 1998 MAYOR BRAUN AND CITY COUNCIL Scott Brodhun, Parks & Recreation Director . Resolution Authorizing Grant Application - (DNR-ALEA) SUMMARY: Adoption of the attached resolution is necessary in order to apply for funding to the Department of Natural Resources Aquatic Lands Enhancement Account (ALEA) grant program. The resolution will become part of the formal application for funds to further develop the Waterfront Trail, create interpretive sites on the trail, and develop portions of the Valley Creek Estuary uplands. RECOMMENDATION: City Council approve the resolution authorizing a grant application to DNR for fundin assistance for an A uatic Lands Enhancement Account ro' ect. ISSUE: Should the City Council approve the attached resolution authorizing a grant application to DNR for funding assistance to extend and enhance the Waterfront Trail and assist with development of the Valley Creek Estuary uplands? BACKGROUND / ANALYSIS: The DNR-ALEA grant program has been utilized to develop three sections of the Waterfront Trail, as well as Sail & Paddle Park. Additionally, the City is currently under contract with DNR for the grant assisted purchase of property necessary to develop the Centennial Trail. Although the City has utilized the DNR-ALEA program extensively in the past, it has become an unpredictable grant program. This past spring, upon DNR announcement of the annual grant cycle, staff began preparing a grant application. Subsequent to the initial announcement, DNR informed prospective applicants of an interruption in the grant program. The agency provided no indication that the program would be available in 1998, however within the last couple of weeks staff received notification that applications were available and due October 1, 1998. Because of the unexpected announcement staff is still working on development of a proposal that fits within the ALEA program guidelines. Considering the recent interest in developing the trail across the Oak Street property, and the ongoing efforts to develop the uplands area at the Valley Creek Estuary, it may be feasible to submit an application to fund those projects. Because of the current effort to develop the Oak Street and Valley Creek Trail sections, staffwill submit as flexible an application as possible. It is anticipated that the submission would be in grant category 1, requiring a project of $75,000 or less. It is also important to note that because of community support for development of the trail and estuary, it is possible that an application can be presented so as to reduce, if not eliminate, allocation of city funding to meet local match requirements of the program. Staff recommends that City Council take advantage of this potential opportunity. 130 131 ,.."w-............._."'.'.:;;_," RESOLUTION NO. A RESOLUTION of the City Council of the City of Port Angeles, Washington, authorizing an application for funding assistance to the Department of Natural Resources for an Aquatic Lands Enhancement Account project. WHEREAS, under RCW 79.24.580, state funding assistance has been authorized and made available to aid in financing the cost of land and the construction of facilities for public access to, and aquatic land enhancement of, state-owned aquatic lands; and WHEREAS, the City Council of Port Angeles considers it in the public interest to extend the Waterfront Trail along the shoreline of the City, to develop interpretive sites on the trail, and to create passive, pedestrian oriented access to the shoreline generally located from Oak Street west through the Valley Creek Estuary Park; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Angeles, Washington as follows: 1. The Parks and Recreation Director is authorized to make formal application to the Department of Natural Resources for funding assistance. 2. Any funding assistance so received shall be used for development and extension of the waterfront trail. 3. The City's share for the project will be derived from donations of materials, cash, and in-kind services. -1- 132 4. Any property acquired with financial aid through the Aquatic Lands Enhancement Account shall be placed in use in accordance with the terms of the financial aid approved by the Department of Natural Resources. 5. Any developed facilities financed through the Aquatic Lands Enhancement Account shall be maintained by the City for 25 years or longer. 6. This resolution shall become part of a formal application to the Department of Natural Resources. 7. Adequate notification has been given and the opportunity provided for public input. P AS SED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the _ day of ,1998. MAYOR ATTEST: Becky 1. Upton, City Clerk APPROVED AS TO FORM: Craig D. Knutson, City Attorney R98.07 -2- i 0 .... ~ J.} DATE: To: FROM: SUBJECT: -)------ L. ---- ]?" OR.. T~. N..GE.LES.. ,- - '..... ~ ~....; ...} , ". '... .~. ... ... '. ...:. 1...I..t j ,t >;:4. \ f ~ _ _ ..':' i, i: _~' l " .. .... -I \~ ~ -~~, ' WAS H I N G TON, U. S. A. CITY COUNCIL MEMO September 15, 1998 MAYOR BRAUN AND CITY COUNCIL Jack Pittis, Director of Public Works & Utilities Surrendering ofFERC License for Morse Creek Hydro Project SUMMARY: The continued operation of the Morse Creek Hydro facility is not in the best interest of our electric ratepayers. If we do not operate the project we must surrender our Federal Energy Regulatory Commission (FERC) license. RECOMMENDATION: The Utility Advisory Committee and city staff recommend that City Council authorize staff to notify FERC of our intention to surrender the Morse Creek Hydro operating license subject to City Council review and approval of any mitigating conditions im osed b FERC as art of the license surrender rocess. ISSUE: Should the City of Port Angeles initiate the process to surrender the FERC operating license for the Morse Creek Hydro Project? BACKGROUND / ANALYSIS: At the last City Council meeting, the Council requested that staff obtain a written confirmation from FERC regarding their process for surrendering the City's hydro operating license for Morse Creek. The process, as prescribed in 18 CFR Chapter I, Part 6, includes 1) the licensee must notify FERC by letter of its intent and reasons for license surrender; 2) FERC will complete an environmental assessment of the project and provide public notice of the intent to surrender the license; 3) FERC accepts public and agency comments on license surrender for at least 30 days; 4) FERC establishes terms and conditions that must be met by licensee; 5) FERC and the licensee (City) reach mutual agreement on final terms and conditions. Since the last City Council meeting staffhas requested that FERC send a letter confirming the steps for license surrender, especially the requirement that final terms and conditions must be mutually agreed to or the City can rescind its request to surrender the license. FERC is preparing a letter confirming that the City can rescind its surrender request and staff hopes to receive it prior to the 9/15/98 Council meeting. In addition, the City Attorney contacted a Washington, D.C. law firm that has expertise in FERC matters and received confirmation that the City may terminate the surrender process if satisfactory terms and conditions cannot be agreed to. At this point, if the City decides not to initiate license surrender by the deadline imposed by FERC of September 20, 1998, then actions must be taken to proceed with acquiring estimates for repairs. However, if the license is surrendered there appears to be a step in the process where reconsideration can be made. 134 FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON. D. C. 20426 OFFICE OF HYDROPOWER LICENSING P-6461--Washington Morse Creek Project city of Port Angeles, Washington Mr. Bob Titus Deputy Director of utilities Services City of Port Angeles P.O. Box 1150 Port Angeles, WA 98362 SEP 0 9 818 Dear Mr. Titus: This is in response to your request for a confirmation letter concerning a telephone conversation you had with Mr. Pete McGovern on September 3, 1998, about the Commission's surrender procedures and whether the licensee is able to withdraw its application once it is filed. Part 6 of the Commission's regulations (copy enclosed) states that licenses may be surrendered only upon the fulfillment by the licensee of such obligations under the license as the Commission may prescribe. Further, if a project has been constructed, such as this one, the Commission may condition acceptance of the surrender on the licensee's disposition of project works. Upon receiving an application for surrender that includes the reason for the request, the Comm1ssion issues a public notice that a surrender application has been filed. For constructed projects, we also prepare an Environmental Assessment (EA) of the proposed surrender. The EA will recommend what restoration measures, if any, are needed. If the licensee determines that the recommended restoration measures are unacceptable, it may withdraw the surrender application. You should be aware, however, that the Commission would require the licensee to take whatever measures might be needed to continue with the operation of the project and compliance with its license. 2 I hope this infoL~at~on 1S helpful. If you have any questions about this letter, please contact Mr. McGovern at (202) 219-2867. Sincerely, Il! l, It. A{.:J-l tuA rol L. sampsoq rector fice of Hydropower Licensing Enclosure cc: Public Files I 183 7.10-86 Regulations- 11,095 " [~ 12,250] Part &-Surrender or Termination, of License Sec. 6.1 Application for surrender. 6.2 Surrender of license. 6.3 Termination of license. 6.4 Termination by implied surrender. 6.5 Annual charges. AUTHORITY: The provisions of this Part 6 issued under sees. 6, 10(i), 13, 41 Stat. 1067, 1068, 1071, as amended, sec. 309, 49 Stat. 858; 16 U.S.c. 799, 803(i), 806, 825h. SoURCE: The pr~visions of this Part 6 contained in Order 141, -12 F.R. , 8491, Dec. 19, 1947, unless otherwise noted. _ [, 12,251} ~ 6.1 Application for surrender. I I Every application for surrender of a license shall state the reason therefor; and~ except in the case of an application for surrender of a license for a minor project, or for a transmission line only, shall be executed by the licensee and filed in same form and manner as the application for license, and shall Qe accompanied by the license and all amendments thereof. Public notice of such application shall be given at least 30 days prior. to action upon _t.he application. -:-to. ~ I CROSS REFERENCES: For application for license, general provisions. see ! ! 4.30 to 4.33, inclusive, of this chapter. For application for license for proposed major. project or minor part thereof. see !! 4.40 to 4.42. - inclusive, of this chapter. For appl!cation for license for constructed major pr!>ject or minor part thereof, see ! ~ 4.50 and 4.51 of this chapter. For forms for application for licenses. see ~ ~ 131.2 to 131.6, inclusive. of this c..!!apter. . [Order 141. 12 F.R. 8491. Dec. 19,1947. as amended by Order 570, 42 F.R. 40190. Aug. 9. 1977.] [~ 12,252] ~ 6.2 Surrender of license. \ Licenses may be surrendered only uP9n the fulfillment by the licensee of such obligations under the license as the Commission may prescribe, and, if the project works authorized under the license have been constructed in whole or in part, upon such conditions with respect to the disposition of such works as may be determined by the Commission. Where project works have been " constructed on lands of the United States the licensee will be required to restore the lands to a condition satisfactory to the Department having supervision over such lands and annual ctiarges will continue until such restoration has been satisfactorily completed. [Order 175. 19 F.R. 5217, Aug. 18, 1954.] Federal Eneru R....latory Commlalon 034-U . ~ ~.2 , 12,252 / ,- 135 0, I. --- FO' R' r"'.N" NG' E' 'LE'S" - i ",.. ", " _, r, I, _ 1, _~- t I '\ )1 ~ '< l / '\" l j' -! ;, t; ! ~ i:" ~1'" ' i. ~. . ....,~. -' ~ -' ... WAS H I N G TON, U. S. A. C IT Y C 0 U N elL M E.M 0 DATE: September 15, 1998 To: Mayor Braun and City Council FROM: Patrick Ibarra, City Manager SUBJECT: City Manager's Report SPEAKING ENGAGEMENTS I will be speaking to the Olympic Peninsula Travel Association on September 23 and Rotary, Noon, on September 30. A WC REGIONAL MEETINGS A final reminder about the A WC Regional Meeting scheduled for Thursday, October 1, 6:00 p.m. in Bremerton. Depending upon the number of Council interested in attending, I can utilize a van from a department and all of us can travel together. I will be confirming attendance at Monday's meeting. EDC'S 2020 MEETING A final reminder abut the next 2020 meeting for elected officials to further discuss economic development goals and objectives is scheduled for Thursday, September 17, 2:00 - 4:00 p.m., at the Clallam Transit facility. I encourage your attendance at the September 17th meeting. PENINSULA INTERNATIONAl, REI,ATIONS ASSOCIATION (PIRA) Each of you should have received an invitation to the PIRA dinner on Monday, September 21,6:45 p.m. at the Destiny Restaurant. Mayor Sugiyama, the Mayor of our sister city, Mutsu, Japan, and his associates are guests. If you did not receive an invitation, please notify me and I will forward one to you. UTILITY ADVISORY COMMITTEE A reminder that the next meeting is Monday, September 21, 8:15 a.m. in the Public Works Conference Room and the topic will be a review of the solid waste analysis recently completed by staff. 136 Lr_ DOWNTOWN W A TERMAIN/SIDEW AI.K PROJECT At the September 1 .Council meeting, there was much discussion regarding this subject. In particular, the justification for the project over-fUllS. I asked Jack Pittis to prepare a report, however he will be out oftown to APW A's (American Public Works Association) national conference during the September 15 meeting. As a result, I am holding the report until the October 6 meeting so Jack can be in attendance and respond to any questions from Council members. 137 PORT ANGELES CHAMBER OF COMMERCE 121 East Railroad Port Angeles, WA 98362 (360) 452-2363 September 8, 1998 Becky Upton, City Clerk City of Port Angeles P.O. Box 1150 Port Angeles, WA Dear Becky: The Port Angeles Chamber of Commerce is requesting reimbursement for the City's share of the operating cost of the Visitor Center for the months of June and July 1998 The financial statement for June and July are enclosed. The city's share for the month of June is $2,808 and July is $2,828.00 You will also find paid utility bills totally $893.42 for six months of this year. The city share is,$670.07 The financial statement do not reflect the utility bills, but they have been paid and a copy of the check is enclosed. Total reimbursement to the Chamber is $6,306.07 If you have any questions, call me at 452363 Sincerely, ~ --- ~ O-z.--"--?~ Erl Hansen Executive Director 138 FAX # 360-457-5380 · www.cityofpa.com · E-mail: pangeles@olypen.com REPRESENTING THE LARGEST GROUP OF BUSINESSES ON THE PENINSULA ;<EVENUES MEMBERSHIP DUES $ COUNTER SALES BUILDING RENTAL SHARED EXPENSE REIMBURS N.W. WOOD SHOWCASE ANNUAL BANQUET CHAMBER FUND RAISERS FUND RAISER-AUCTION INTEREST EARNED BROCHURE DISTRIBUTION CHAMBER SERVICES DONATIONS RETIREMENT PROMOTION JULY 4TH INCOME INTERNET ADVERTISING BUS. RETENTION INCOME TOTAL REVENUES EXPENDITURES MATERIALS-COUNTER SALES MATERIALS-SHOWCASE SALARY - f'I.ANAGER SALARY SECRETARIAL PENSION EXPENSE ISIMPLE FICA TAX FEDERAL Ujc EXPENSE STATE UjC EXPENSE STATE INDUSTRIAL INS. LESS VC ALLOCATION MAJOR MEDICAL INSURANCE MEDICAL INS.-OFFICE MGR R.E. & P.P. TAXES LIABILITY & FIRE INS. BANK CHARGES OFFICE SUPPLIES OFFICE EQUIPMENT AUTO ALLOWANCE DUES & SUBSCRIPTIONS OFFICE RENT POSTAGE UTILITIES EQUIPMENT RENTAL TELEPHONE REPAIR & MAINTENANCE MANAGER TRAVEL EXPENSES ACTUAL 1998 CURRENT MONTH 3,445 2,663 1,116 2,063 10,916 100 20,806 1,937 1,573 3,765 736 157 401 21 78 79 (97) 538 156 YEAR TO-DATE $ 43,657 6,748 258 1,754 2,300 2,588 241 1,412 262 57 978 655 10,916 300 --i.2 71,667 5,446 1,573 22,588 4,416 1,728 2,404 l:~.2 28 46 :57 158 (426 ) 2,873 433 39 83 184 558 599 1,800 445 2,C24 877 300 150 337 2 94 74 67 91 348 363 94 657 PORT ANGELES CHAMBER ~F COMMERCE STATEMENT OF OPERA7I~~ FUNDS For Period Ended June 30, 1998 BUDGET 1998 YEAR TOTAL 59,000 20,000 2,904 7,000 2,000 18,525 6,000 2,200 250 100 2,200 10,000 4,050 134,229 12,000 5,250 45,176 8,833 2,776 4,530 5,000 554 30 100 950 1,200 300 3,600 1,010 4,048 3,600 325 710 550 225 1,000 ACTUAL :997 CURRENT MONTH $ 4,123 2,331 145 YEAR :'O-DATE s 41,624 6,848 879 10 1,506 ACTUAL IXCREASE (DECREASE) CURRENT :-lONTH $ (678) 332 (145) 907 250 224 95 257 10,252 18,583 1,111 313 3,691 701 390 24 73 75 (94) 268 277 7 131 300 205 337 472 45 21 174 250 1,242 170 68 986 12,097 65,679 5,401 716 22,145 4,206 2,338 112 149 151 (407) 2,566 554 27 82 91 701 993 1,800 660 2,024 1,787 222 429 284 237 533 209 1,813 665 100 2,223 826 1,260 74 35 157 11 (3) 5 4 (3) 270 (121) 21 (85) (55) (470) 94 29 46 (83) See accountants' compilation report YEAR TO-DATE $ 2,034 (100) (622) (10) 247 2,300 2,338 18 (95) 170 (170) (10) (8 ) 655 (1,180) 300 ---.ll 5,987 5 45 857 443 210 1,728 66 8 (20) 307 (121) 12 1 93 (143) (394 ) (215) (909) (222) ( 81l 79 1143 ) 124 .-. 139 PORT ~~GELES C~~ER OF COMMERCE STATEMENT OF OPERA7:NG FUNDS For Period Ended June 30, 1998 ACTUAL 1998 BUDGET 1998 ACTUAL 1997 ACTUAL INCREASE (DECREASE) CURRENT MONTH YEAR TO-DATE YEAR TOTAL CURRENT MONTH YEAR TO-DATE CURRENT MONTH YEAR TO-DATE ~XPENDITURES - CONTIN"'JED SECRETARY'S EXPENSE S 69 $ 428 $ 1,000 $ 122 $ 542 $ (53) $ (114) EXECUTIVE TRAINING 984 (984) ACCOUNTING SERVICES 350 1,750 4,200 350 1,750 ANNUAL BANQUET 3,307 2,000 288 3,018 GUEST SPEAKER MEALS 24 152 500 150 24 2 COMMUNITY DEVELOP~Eh, 300 388 (388) CONCERTS ON THE PIER 150 198 1,800 150 198 JULY 4TH EVENT 375 464 200 375 464 JULY 4TH FIREWORKS 10,000 10,000 10,000 10,000 10,000 RETIREMENT PROMOTION 655 655 HOSPITALITY DIVISION 100 GOVERNMENT RELATIONS 65 100 90 (25) TOURIST PROMOTION 874 2,600 302 573 BUS. RETENTION CO~I7TE 175 175 INTERNET EXPENSE 35 180 240 35 180 FUND RAISER - EXP 7,556 FUND RAISER - AUCTION 1,800 EMMYLOU HARRIS CONCERT 4,725 4,725 (4,725) (4,725) MISCELLANEOUS EXPENSE 54 309 150 153 54 157 MEMBERSHIP DEVELOP~ENT 310 389 (79) PENALTIES 159 (159) NEWSLETTER EXPENSE ~ 45 -----2Q.Q ~ ~ TOTAL EXPENDITURES 21,634 68,446 llhlll 13,369 55,969 ...L.l.ll 12,476 EXCESS (DEFICIENCY) $ (829) $ 3,221 $ '784 ) $ 5,214 $ 9 ,710 $ (6,043 ) $ (6,489 ) 140 See accountants' compilation report PORT ANGE~~5 CHAMBER OF CO~ERCE STATEMENT OF VISITOR CENTER F~~S For Period Ended June 30, "998 ACTUAL 1998 BUDGET 1998 ACTUAL 1997 ACTUAL IXCREASE (DECREASE) CURRENT MONTH YEAR YEAR TOTAL CURRENT MONTH YEAR GrR-RENT TO-DATE TO-DATE ~ONTH YEAR TO-DATE REVENUES CITY ALLOCATION $ 13,455 $ 50,300 $ .J!..il.i S 20,466 s .i...L.il.i) $ lL..Qll) TOTAL REVENUES :3,455 50,300 8,434 20,466 (8,434) (7,011) EXPENDITURES BROCHURES & ADVERTISING 2,319 14,900 279 779 (279) 1,540 VIC MEDICAL INSURANCE 156 c:~~ 554 277 156 156 VIC EQUIPMENT 200 1,798 VIC WAGES \ 736 ';,416 8,833 701 4,206 3.5 210 VIC RENT 1,012 6,073 12,146 1,012 6,073 VIC UTILITIES 980 667 (667) VIC REPAIR & MAINT. 201 283 675 64 712 138 (429) VIC OFFICE SUPPLIES 102 :,135 2,830 166 1,837 (64) (702) VIC EQUIPMENT RENTAL 281 1,044 2,130 1,287 281 (244 ) VIC POSTAGE 1,867 4,250 375 2,557 (375) (690) VIC BUILDING INS. 250 250 247 VIC TELEPHONE 223 1,088 1,730 136 851 87 238 VIC PAYROLL TAXES ----ll ----lli ~ --2.i ~ --2 -2Q TOTAL EXPENDITURES -2...!.Q! 2:1..133 50,300 ..2....!!ll 19,901 ----ill) -L.lll EXCESS (DEFICIENCY) $ (2,808) $ '7,678) $ 5,606 $ 565 $ 18,414 ) $ (8,243 ) - ',j 141 See accountants' compilation report PORT ANGELES CHAMBER OF COMMERCE STATEMENT OF OPERATING FUNDS \ For Period Ended July 31, 1998 ACTUAL ACTUAL 1998 BUDGET 1998 ACTUAL 1997 INCREASE (DECREASE) ------------------ ----------- ------------------- -------------------- CURRENT YEAR YEAR CURRENT YEAR CURRENT YEAR MONTH TO-DATE TOTAL MONTH TO-DATE MONTH TO-DATE REVENUES MEMBERSHIP DUES $ 2,751 $ 46,408 $ 59,000 $ 4,270 $ 45,B93 $ (1,519) \.$ 515 COUNTER SALES 2,604 9,353 20,000 4,486 11 ,334 (l,BBl) (1,981) BUILDING RENTAL 145 403 2,904 379 1,258 (234) (856) SHARED EXPENSE REIMBURS 10 (10) N.W. WOOD SHOWCASE 1,512 3,266 7,000 1,913 ' 3,420 (401) (154) ANNUAL BANQUET 2,300 2,000 2,300 EMMYLOU HARRIS CONCERT 2,072 2,072 (2,072) (2,072) CHAMBER FUND RAISER~ 2,385 4,973 IB,525 5,223 5,413 (2,83B) (500) FUND RAISER-AUCTION 6,000 INTEREST EARNED 253 1,665 2,200 234 1,476 19 189 BROCHURE DISTRIBUTION 160 160' 250 170 160 (10) CHAMBER SERVICES 57 100 68 (10) DONATIONS 293 1,270 2,200 317 1,303 (25) (33) RETIREMENT PROMOTION 655 655 JULY 4TH INCOME 1,310 12,226 10,000 769 12,B66 541 (639) INTERNET ADVERTISING 100 400 4,050 100 400 BUS. RETENTION INCOME 45 45 TOTAL REVENUES 11,514 83,180 134,229 19,663 85,342 (B,149) (2,162) EX PEND ITURES MATERIALS-COUNTER SALES 1,179 6,625 12,000 2,900 8,301 (1,721) (1,676) MATERIALS-SHOWCASE 1,573 5,250 I 866 1,5B3 (866) (10) SALARY - MANAGER 3,765 26,353 45,176 3,691 25,B36 74 517 SALARY - SECRETARIAL 736 5,152 B,B33 701 4,907 35 245 PENSION EXPENSE (SIMPLE 157 1,BB5 2,776 151 151 6 1,n4 FlCA TAX 401 2,804 390 2,727 11 77 FEDERAL UtC EXPENSE 112 112 STATE UtC EXPENSE 157 4,530 149 8 STATE INDUSTRIAL INS. 158 151 B LESS VC ALLOCATION (56) (483) (54) (460) (3) (22) MAJOR MEDICAL INSURANCE 318 3,191 5,000 770 3,336 ( 452) (145) MEDICAL INS.-OFFICE MGR 433 554 554 (121) R.E. & P.P. TAXES 39 30 27 "\ 12 LIABILITY & FIRE INS. B3 100 82 1 BANK CHARGES 123 307 950 56 147 67 160 OFFI CE SUPPLI ES 40 598 1,200 24 725 16 (127) OFFICE EQUIPMENT 599 300 993 (394) AUTO ALLOWANCE 300 2,100 3,600 300 2,100 DUES & SUBSCRIPTIONS 100 545 1,010 130 790 (30) (245) OFFICE RENT 337 2,362 4,048 337 2,362 POSTAGE 407 1,284 3,600 843 2,629 (436) (1,345) UTILITIES 325 222 (222) EQUIPMENT RENTAL 348 710 47 476 (47) (128) @ See attached schedu1e showing breakdown by activity. 14r: See Accountants' COlpilation Report. PORT ANGELES CHA~BER OF CO~~ERCE STATEMENT OF OPERATING FUNDS For Period Ended July 31, 1998 ACTUAL ACTUAL 199B . BUDGET 1998 ACTUAL 1997 INCREASE (DECREASE) ------------------ ----------- ------------------- -------------------- CURRENT YEAR YEAR CURRENT YEAR CURRENT YEAR ~ONTH TO-DATE TOTAL ~ONTH TO-DATE MONTH TO-DATE EXPENDITURES - CONTINUED TELEPHONE $ 51 $ 414 $ 550 $ 27 $ 310 $ 24 $ 103 REPAIR & ~AINTENANCE 94 225 8 245 (8) (151) ~ANAGER TRAVEL EXPENSES 657 1,000 81 614 (81) 43 SECRETARY'S EXPENSE 428 1,000 62 604 (62) (176) EXECUTIVE TRAINING 984 (984) ACCOUNTING SERVICES 350 2,100 4,200 350 2,100 ANNUAL BANDUET 3,307 2,000 288 3,018 GUEST SPEAKER ~EALS 152 500 60 210 (60) (58) COM~UNITY DEVELOP~ENT 300 388 (388) CONCERTS ON THE PIER 600 798 1,800 450 450 150 348 JULY 4TH EVENT 200 664 200 92 92 108 572 JULY 4TH FIREWORKS 10,000 10,000 10,000 10,000 (10,000) RETIRE~ENT PRO~OTION 655 655 HOSPITALITY DIVISION 100 60VERN~ENT RELATIONS 65 100 90 (25) TOURIST PRO~OTION 874 2,600 302 573 BUS. RETENTION COMMITTE 175 175 INTERNET EXPENSE 60 240 240 60 240 FUND RAISER - EX~ 1,794 1,794 7,556 2,695 2,695 (901) (901) FUND RAISER - AUCTION 1,800 EMMYLOU HARRIS CONCERT 2,000 6,725 (2,000) (6,725) ~ISCELLANEOUS EXPENSE 309 150 153 157 ~EMBERSHIP DEVELOPMENT 310 389 (79) PENAL TIES 159 (159) NEWSLETTER EXPENSE 17 62 700 17 62 TOTAL EXPENDITURES 10,877 79,323 135,013 26,626 82,596 (15,749) (3,273) EXCESS (DEFICIENCY) $ 636 $ 3,857 $ (784) $ (6,964) $ 2,746 $ 7,600 $ 1,111 ------ ------- ------- ------ ------- ------ ------ ~ See attached schedule showing breakdown by activity. See Accountants' COlpilation Report. 14~' I :,n;;'T ANGELES CHAMBER O~ COMMEQCE STATEMENT OF V I S nOR CENTER FUNDS For Period Ended July ~j 1998 oJ..., ACTUAL J ACTUAL 1998 BUDGET 1998 ACTUAL .1997 INCREASE (DECREASE) ------------------ ----------- ------------------- -------------------- CURRENT YEAR YEAR CURRENT YEAR CURRENT YEAR MONTH TO-DATE TOTAL MONTH TO-DATE MONTH TO-DATE REVENUES CTn ALLOCATION $ 6,035 $ 19,490 . 50,300 $ 20,466 $ 6,035 $ (976) ~ -' TOTAL REVENUES 6,035 19,490 50,300 20,466 6,035 (976)- EXPENDITURES BROCHURES & ADVERTISING 2,319 14,900 534 1,314 (534) 1,006 VTr MEDICAL INSURANCE ..,., 554 277 156 'I,),) VIC EQUIPMENT 1,798 200 1,798 ",.,... WAGES 736 5,152 8,833 701 4,907 ,,:!C, 245 ViI.. vv VIe RENT 1 fl1? 7,085 12,146 1,012 7,085 .,........ VIC UTILITIES 980 667 (667) / VIe REPAIR & MINT. 283 675 'l~ 735 (23) (452) ..v VIC OFFICE SUPPLIES 121 1,257 2,830 46 1,884 "7' (627) I J VIe EGUIPMENT RENTAL 1,044 " p" 141 1,428 ; (141) (384) ..,..oJv VIe POSTAGE 750. 2,617 ,4,250 375 2,932 ~7~ (315) v,v VIe BUILDING INS. 250 250 247 ~ v ,- VIC TELEP~ONE ) 152 1,241 1,730 ,I 1"? 973 30 268 .4. VIe PAYROLL TAt.!: 56 483 822 1\ 54 460 .j 22 ,t1"~W /_----- TOTAL EXPHJD ITURES 2,828 23,961 50,300 3,008 22,909 (180) 1,052 EXCESS (DEFICIENCY) S 3,207 S (4,471) S (3,008) $ (2,443) $ 6,215 $ (2,028) ------ ------ ------ ------ ------ ------ ------ j See Accountants' Compilation Reocrt. 144