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HomeMy WebLinkAbout01202026 CC Agenda Packet January 20, 2026 Port Angeles City Council Meeting Page 1 January 20, 2026 City of Port Angeles Council Meeting Agenda This meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City sta ff have the option to attend the meeting in person, in Council chambers at City Hall located at 321 East 5th Street, Port Angeles, or remotely via telephone or video link. The Mayor may determine the order of business for a particular City Council meeting. The agenda should be arranged to best serve the needs and/or convenience of the Council and the public. The Mayor will determine time of break. Hearing devices are available for those needing assistance. The items of business for regular Council meetings may include the following: A. Call to Order – Regular Meeting at 6:00 p.m. B. Roll Call, Pledge of Allegiance Ceremonial Matters, Proclamations & Employee Recognitions 1. Mayor and Deputy Mayor Elections ...............................................................................................................................B-1 C. Late Items To be placed on this or future agendas, including any executive session needed during or at the end of the meet ing. D. Public Comment The City Council desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an or derly and timely manner. Visit https://www.cityofpa.us/Live-Virtual-Meetings to learn how to participate during public comment and or watch the meeting live. Written public comments can be submitted to: council@cityofpa.us, comments will not be read aloud. Audio only: 1-844-992-4726 Access code (webinar number) : 2550 460 9455 Webinar password: DwbSYZQ2p26 (39279972 when dialing from a phone or video system) Once connected, press *3 to raise your virtual hand if you wish to make a comment or public testimony. You will be notified when it is your turn to speak. Webex link: https://cityofpa.webex.com/cityofpa/j.php?MTID=m5e54959e58046a2e95330d54cca097ca To make a public comment, please use the “raise your hand” feature in Webex. You will be notified when it is your turn to speak. These access codes are good for the Tuesday, January 20, 2026 meeting only. Members of the public may address the City Council at the beginning and end of any Regular Meeting under "Public Comment." During the "Public Comment" portion of the meeting, individuals may speak to agenda items, except those scheduled for a Publi c Hearing. The City Council desires to allow the opportunity for Public Comment. However, the business of the City must proceed in an orderly, timely manner. At any time, the presiding officer, in the presiding officer's sole discretion, may set such reaso nable limits as are necessary to prevent disruption of other necessary business. At its most restrictive, Public Comment shall be limited to a total of 15 minutes for the first Public Comment period and shall be concluded not later than 9:45 for the second Publi c Comment period. Individuals may speak for three (3) minutes or less, depending on the number of people wishing to speak. If more than 20 peop le are signed up to speak each speaker may be allocated two (2) minutes. Individuals who are residents of the City or own businesses within the City will be called to speak first, with preference given to those who wish to speak to an item on the meeting’s agenda. If time remains, the presiding officer will call other individuals wish ing to speak, generally in the order in which they have signed in. If time is available, the presiding officer may call for additional unsigned speakers. Persons speaking shall state their name, whether they reside within the City limits, whether they have any other pertinent co nnection to the City, and whether they are appearing as the representative of an organization. Excerpts: Council Rules of Procedure Section 12 January 20, 2026 Port Angeles City Council Meeting Page 2 E. Consent Agenda | Approve 1. City Council Minutes of October 28, 2025, December 16, 2025 and January 6, 2026 / Approve ................................... E- 1 2. Expenditure Report: From December 13, 2025 to January 9, 2026 in the amount of $5,156,614.24 / Approve ............... E-20 3. Landfill Seawall – Beach Nourishment / 1) Authorize Staff to send a favorable response to Department of Ecology’s proposal detailed in their December 30, 2025, letter, pausing the beach nourishment requirement of Shoreline Conditional Use Permit #2005-SW-02799 and proceed with the development of an alternative compensatory mitigation plan. ................................................................................................................................................................ E-57 4. 8th Street Paving Project CON-2024-05 (TR0119) - Final Acceptance / 1) Accept the 8th Street Paving Project (CON-204-05) as complete, and 2) authorize staff to proceed with project closeout and releas e the contract bond upon receipt of all required clearances. ................................................................................................................. E-61 5. Marine Drive Paving Project, Final Acceptance – TR0324 / 1) Accept the Marine Drive Paving Project (TR0324) as complete, and 2) authorize staff to proceed with project closeout, and release the retainage bond upon receipt of all required clearances. ........................................................................................................................................................ E-64 6. Washington State Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25-94110-003 / 1) Accept the Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25-94110-003 in the amount of $1,988,500.00 for predevelopment work at 935 West 10th Street, 2) authorize the City Manager to negotiate and execute all necessary grant documents and make modifications, and 3) direct staff to modify the timelines associated with this project in the 2025-2026 City Strategic Plan (Resolution 10-24) to ensure consistency with the timeline detailed in Table 1. ............................. E-67 7. Berg Benefits Professional Services Agreement and RedQuote HRA Adoption Agreement / 1) Authorize the City Manager to sign the Berg Benefits Professional Services Agreement in an amount not to exceed $59,400, and 2) authorize the City Manager to sign the RedQuote Adoption Agreement. .................................................................... E-98 8. Approving the Continuation of Merchant Services with National Cash Register / 1) Authorize the City Manager or their designee to continue the existing agreement for up to an additional three years with National Cash Register (NCR), and 2) to sign all necessary contract documents, to administer the contract, and to make mino r modifications. ......... E-122 9. FY 2025-2027 Water Quality Stormwater Capacity Grant Agreement Contract No. WQSWCAP-2527-PoAnPW-001461 / Accept the Washington State Department of Ecology FY2025 -2027 Biennial Stormwater Capacity Grant in the amount of $120,000, and 2) authorize the City Manager to sign all grant -related documents, to administer the grant, and to make minor modifications to the agreement, as necessary. ......................................................................................... E-135 F. Public Hearings | 6:30 p.m. or Soon Thereafter ................................................................................................... None G. Ordinances Not Requiring Council Public Hearings ....................................................................................... None H. Resolutions Not Requiring Council Public Hearings 1. Adopting Procedures for Accepting Donated Permit-Ready Plans / Pass Resolution and Authorize ............................. H-1 I. Other Considerations 1. Senior Center Yearly Update / Verbal Update from Senior Center Manager Carmen Geyer 2. 2026-2027 Council Assignments / Council Discussion and Assignment Approval ......................................................... I-1 J. Contracts & Purchasing 1. Class B Biosolids Transportation and Beneficial Use SVC-2025-54 / ........................................................................... J-1 K. Council Reports L. Information City Manager Reports: 1. Public Works & Utilities Project, Contracting and Grant Status Report / For Information Only ................................... L-1 2. Monthly Update on Past Due Utility Accounts – December 2025 / For Information Only ............................................ L-37 3. CED Affordable Housing Report – December 2025 / For Information Only.................................................................. L-39 4. Grant Report December 2025 Community and Economic Development / For Information Only .................................. L-40 5. Customer Service Report December 2025 Community and Economic Development / For Information Only ............... L-46 January 20, 2026 Port Angeles City Council Meeting Page 3 PUBLIC HEARINGS Public hearings are set by the City Council in order to meet legal requirements. City Council may set a public hearing in ord er to receive public input prior to making decisions which impact citizens. City Council may choose to seek public opinion through the public hearing process. 6. Building Report December 2025 Community and Economic Development / For Information Only ............................. L-47 7. Over the Counter Permit Report December 2025 Community and Economic Development / For Information Only .... L-48 8. SB 5290 Report December 2025 Community and Economic Development / For Information Only ............................. L-49 M. Second Public Comment Follow the instructions from the first public comment period. Adjournment Date: January 20, 2026 To: City Council From: Nathan A. West, City Manager Subject: Election of Mayor and Deputy Mayor Summary: According to state statute, the first order of business for the January 6 City Council meeting is for the Council to elect a new Mayor and Deputy Mayor. The statute does not, however, establish the procedure Council shall follow to make these elections. The Council is free to decide on what process to follow. During the meeting on January 6, one member was absent, which led to the tie vote for the Mayor position. After consulting with the City Attorney, Council chose to address the election of Mayor and Deputy Mayor during the January 20th meeting when there are 7 members in attendance. Suggestion: While each Council decides on the procedure it will follow to elect the Mayor and Deputy Mayor, it has been the tradition in Port Angeles to select the Mayor and Deputy Mayor through a Council nomination process. That procedure seems to have worked well over the years. Therefore, as a suggestion, the Council might consider using that same procedure. If so, the meeting would occur as follows: Mayor Dexter opens the meeting as usual. •As the first item of business, she then calls for nominations for a new Mayor. •She will accept nominations as they come in if those nominated wish to be considered. •Nominations do not require a second. •Once all the nominations have been made, she will close the nominations. •Voting on the nominations will proceed at the Councils preference. •The newly elected Mayor will then follow the same process for election of the Deputy Mayor. January 20, 2026 % - 1 City Council Meeting January 20, 2026 PUBLIC COMMENT SIGN-UP SHEET Are you*City of Port Angeles resident or PrintName l ens owner? �C Yes or No Lu X-re)t-1, Gi 3s (Ai /awl S-T- S,FP1-)£r( g or No 7 0 Mkd t.f 10 or No Cq S 7 t� Yes or No Yes or No Yes or No Yes or No Yes or No Yes or No Individuals who are residents of the City or own businesses within the City will be called to speak first, with preference given to those who wish to speak to an item on the meeting's agenda. If time remains, the presiding officer will call other individuals wishing to speak, generally in the order in which they have signed in. If time is available, the presiding officer may call for additional unsigned speakers. Persons speaking shall state their name, whether they reside within the City limits, whether they have any other pertinent connection to the City, and whether they are appearing as the representative of an organization. Excerpts: Council Rules of Procedure Section 12 I ,Page 1 -I.. (-raft. pORTANGELES 321 East Fifth Street W A S H I N G T O N , U . S . Port Angeles, WA 98362 Correspondence submitted to the Port Angeles City Council during the public comment period to be made a part of the record of this meeting. WRITTEN PUBLIC COMMENTS SUBMITTED S. LUXtOn /18/2026 MEETING BODY C( CQ (,� FOR: City Council, City of Port Angeles INTO THE RECORD BY' SAeWe-a Course for Success 935 West 10th Street: Charting DATE: / 0l2t& This evening please set out a clear and achievable objective for this Project Objective: 935 W 10th Street shall be designed andIn con tructedbelow as to be built Set a Project 1 eo le at 60% Area Median permanently affordable housing forfp or government organization. and operated by a 501(c)3 non profit of permanent housing after moving from The most significant lack of housing in Port Angeles is that first rung supporting the transitional00% Why: g tad in the 60%and below that serves people that often lack a deposit,credit an d homelessness.The private market in Port Angeles has built over 80 units in the last five years AMI segment,however just 12 have been comp or significant employment history. simplicity and 'Achievable Vision : 935 W 10th Street shall be designed le for being built in phases Create an Achrle affordability, utilizing a duplex court format, the project will be cap be Utilizing a duplex court format allows the project at n and designed as monies become available. U 9 bylocal contractors and provide plans sets that can bereused Tgai Dawna again locally, built part of the City's pre-approved plan program. iew anyone in the community as Court, except utilizing duplexes. employment to local people as our building industry here An apartment building project format Why: Large projects like the PBH are not able to provide significant barriers at the city c is geared to single family and duplex construction(International Residential Code)• per unit basis. built in phases,and is reliant on out of town contractors to tradesmen.n auplex n Becausea of regulatory andstate be P s be more expensive and level an apartment house will alway • ilit with existing funding streams: 60% AMI and below is the Designhthe project for eligibility and COPA affordable housing tax money threshold to receive money from both Clallam County ° threshold for federal section 8 vouchers. This creates both a pathway for pools. 50/° Is the construction and ongoing rent to fund the operation of the building. achiev vate ma is uildin Why:We mus t go forward with a plan that is not reliant on state and federal l funding ng told build e.Tuhespri those values s bn the g units in the 125k-160k range.Just one year of the COPA and City S UT likely scenario that prevailing wage is required,duplexes allow owner operator contractors, an exempt class,to bid on work. City Council's First Step: A resolution for your consideration... Constitute a Committee to Work with CED in development of the RFP for Design A RESOLUTION OF THE CITY COUNCIL OF THE CITY LOCATEDPORT ANGELES,AT 935 WESTI OTHOSTREET;B O HING THE DEVELOPMENT OBJECTIVES FOR THE PROPERTY REQUIRE PERMANENT AFFORDABILITY AT OR BELOW 60%AREA MEDIAN INCOME; TO BE BUILT AND OPERATED BY A 501(c)3 NON-PROFIT OR GOVERNMENT SUBDIVISION;AND TO DIRECT CED TO EMPANEL A COMMITTEE OF CITIZENS WITH EXPERIENCELOCAL AND OPERATION OF HOUSING TO WORK WITH CED &PUBLIC CONSTRUCTION WORKS TO DEVELOP A DESIGN RFP AND REPORT BACK TO CITY COUNCIL. CITY COUNCIL SPECIAL MEETING Port Angeles, Washington October 28, 2025 This meeting was held as a hybrid meeting. CALL TO ORDER SPECIAL MEETING Mayor Dexter called the special meeting of the Port Angeles City Council to order at 5:00 p.m. Members Present: Mayor Dexter, Deputy Mayor Carr (arriving at 5:39 p.m.), Council Members Hamilton, Miller, Schwab, and Suggs (arriving at 5:03). Members Absent: Council member Schromen-Wawrin. Staff Present: City Manager West, Deputy City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, C. Delikat, B. Smith, S. Carrizosa, S. Curtin, D. Sharp, A. Fountain, S. Cartmell, H. Jones, E. Waterkotte and M. Young. WORK SESSION Mayor Dexter opened the meeting and turned the Work Session over to City Manager Nathan West who then spoke about the purpose of the special meeting. He spoke to the content of the presentation that would include the budget development process, the 2026 Preliminary Operating Budget, and the 2026 Budget schedules with an opportunity for Council discussion. He stated the 2026 Budget was balanced through the collective and innovative efforts of City Council, City staff and the Port Angeles Community. He stated a conservative, realistic and conscientious approach was observed to ensure sustainability and fiscal stewardship. He spoke to the purpose of the Work Session being an opportunity to engage in discussion and a time for questions regarding the proposed budget. He stated it was also an opportunity to discuss potential changes as a group and determine if changes should be considered as an action item during the adoption of the 2026 Budget. He spoke to recommendations Council could make which could include funding for a specific program or an addition of services, suggestions for corresponding budget reductions or revenue collections should also be considered. He stated the 2026 Citywide Budget was balanced at $188,896,600 adding that overall, there was a 20.7% decrease compared to 2024. He closed with an overview of the budget process and timelines, as it moves from creation to adoption. He turned the meeting over to Finance Director Sarina Carrizosa who spoke to the budget process and presented a slide that demonstrated that work on the budget is a year-round process. Director Carr -wide revenue sources. She stated that the budget presented reflected the visions, goals and long-term planning of Council and Community and that years of cautious budget planning had enabled the City to provide exemplary services to the community to allow it to move in the direction of building key services. She closed her presentation commitment to affordability, fiscal stewardship and provision of essential services, stated the budget is balanced and reiterated the budget schedule which includes two public hearings. Director Carrizosa added that staff requests consensus on any items Council would like additional information about or items that will return to Council for further consideration. Council recessed for a break at 6:03 pm. Council reconvened at 6:10 p.m. Council discussion followed. ADJOURNMENT Mayor Dexter adjourned the Special Meeting at 6:45 p.m. _____________________________________ _______________________________ Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk January 20, 2026 E - 1 CITY OF PORT ANGELES CITY COUNCIL Port Angeles, Washington December 16, 2025 This meeting was conducted as a hybrid meeting. CALL TO ORDER SPECIAL MEETING Mayor Dexter called the special meeting of the Port Angeles City Council to order at 5:30 p.m. Members Present: Mayor Dexter, Deputy Mayor Carr, Council Members Hamilton, Miller, Schromen- Wawrin, Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, Attorney Bloor, Clerk Martinez-Bailey. EXECUTIVE SESSION Based on input from City Attorney William Bloor, Mayor Dexter announced the need for an Executive Session. City Attorney William Bloor stated the Executive Session would be held under the authority of RCW 42.30110(1)(i) to discuss potential litigation with legal counsel until 5:55 p.m. The City Council moved to the Jack Pittis Conference room for 35 minutes. The meeting began at 5:30 p.m. At 5:55 p.m. the Executive Session meeting concluded and the City Council members moved back to the Council Chambers. ADJOURNMENT Mayor Dexter adjourned the Special Meeting at 5:55 p.m. CALL TO ORDER-REGULAR MEETING Mayor Dexter called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. ROLL CALL Members Present: Mayor Dexter, Deputy Mayor Carr, Council Members Hamilton, Miller, Schromen- Wawrin (attending virtually), Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, Deputy City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, C. Delikat, J. Viada, S. Carrizosa, D. Sharp, S. Curtin, A. Fountain and M. Young. PLEDGE OF ALLEGIANCE Mayor Dexter led the Pledge of Allegiance to the Flag. CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. Proclamation in Recognition of the Public Service of Schromen-Wawrin Mayor Dexter read a proclamation recognizing Schromen-Wawrin’s public service as a Port Angeles City Council member from January 2018 to December 2025, recognizing many of his accomplishments over the last eight years. January 20, 2026 E - 2 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 2 of 9 PUBLIC COMMENT Kevin Russell, Port Angeles business owner, asked the Council to reconsider additions to the Comprehensive Plan, specifically adding FPIC matter and the net ecological gain and asked that anyone associated with a tribe recuse themselves. President of the Port Angeles Salmon Club, spoke to the LTAC matter on the agenda for a Memorial Day Halibut Derby and asked that the LTAC Committee. Susana Spock, on behalf of FutureWise, spoke in favor of the recommendations outlined in the packet as it relates to guidance offered by the Washington State Department of Fish and Wildlife and spoke to housing. Kelly Johnson, city resident and on behalf of Port Angeles Business Association, spoke to a letter submitted by the Port of Port Angeles and spoke in opposition of FPIC matter and net ecological gain. Mimi Smith Dvorak, city resident, handed Council documents that contain information related to adding the changes to the proposed ordinance that were added on November 18 violated the transparency of the comprehensive plan development, and quoted a WAC. Brad Griffith, contractor, brought a cross section of an engineered building material to show the City Council. Danny Stieger, city resident, read a statement related to the need for workforce growth and the need for increasing the Port Angeles housing stock. Timothy Dalton, Clallam County, spoke about housing solution concerns and the comprehensive plan under consideration. James Taylor, city resident, spoke about multifamily housing, and expressed opposition of the FPIC matter and the net ecological gain and said the actions taken on November 18 were beyond what were obligated, due to the lack of transparency. John Ralston, city resident, said that changes the Council were making cause builders challenges. And implied that the changes the City were making to the sidewalks caused the City to lose a development and spoke about a radio purchase. Susie Blake, city resident, spoke of concerns related to zoning changes, in opposition of FPIC matter and the net ecological gain. Kevin Cassara, spoke about the spoke about respect the individuals that they represent. John Worthington, residing outside the city limits, spoke about the Ennis Creek matter on the agenda and spoke about grant proposed. Lauren Beard, city resident, spoke in favor of FPIC matter and the net ecological gain. CONSENT AGENDA At the request of Council member Schwab, and after hearing no objection, the Mayor added I-1 2026 Clean Energy Implementation Plan, J-1 2026 Visit Port Angeles Tourism and Destination Marketing Contract, and J-2 Washington State Transportation Improvement Board Grant Acceptance: N Street Reconstruction – Project (TR0124). At the request of Council member Miller, and after hearing no January 20, 2026 E - 3 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 3 of 9 objection, the Mayor added J-3 Extension of Criminal Justice Agreement with Clallam County to the Consent Agenda. It was moved by Suggs and seconded by Carr to approve the Consent Agenda to include: 1. City Council Minutes of December 2, 2025 / Approve 2. Expenditure Report: From November 22, 2025 to December 5, 2025 in the amount of $3,144,951.71 / Approve 3. Ennis Creek Fish Passage Grant Application, Resolution of Support / 1) Approve and Pass the Ennis Creek Fish Passage Applicant Authorization Resolution authorizing the City Manager to sign the grant application in support of the Ennis Creek Fish Barrier construction grant. / Pass Resolution # 12-25 4. Clallam County Board of Health Grant Acceptance 1) Accept the grant offered by Clallam County Behavioral Health Department in the amount of $348,080.43 for the expansion of the Port Angeles Fire Department’s Post Overdose Response program, and 2) authorize the City Manager to sign the grant funding contract, to implement and approve all actions necessary to accomplish the purposes of the grant, and to make minor modifications to the contract if necessary. 5. Interagency Agreement Between WA Traffic Safety Commission and the Port Angeles Police Department / City of Port Angeles /1) Approve the Interagency Agreement between the Washington Traffic Safety Commission and the City of Port Angeles for its Police Department for the period of performance between October 1 st, 2025 and September 30, 2026, and 2) authorize the City Manager to sign and to implement all actions necessary to manage and administer the Agreement. 6. Assistance to Firefighters Grant Acceptance and Equipment Purchase / 1) Authorize the City Manager or their designee to sign the Department of Homeland Security Assistance to Firefighters Grant and 2) make minor modifications to the agreement, if necessary, to ensure compliance with the grant requirements. 7. Fire Department Co-Response Innovation Grant / 1) Authorize the City Manager to accept the BHCORE grant award for the expansion of the Port Angeles Fire Department’s Post Overdose Response program, 2) Authorize the City Manager to sign the grant funding contract, to implement and approve all actions necessary to accomplish the purposes of the grant, and to make minor modifications to the contract if necessary and 2) The BHCORE grant contract requirements are expected to be similar to those of the 2024 BHCORE City Council-approved grant award. 8. Northwest Safety Services, LLC Service Contract SVC-2022-66 – Amendment No. 4 / 1) Approve amendment no. 4 to service contract with Northwest Safety Services, LLC, SVC-2022-66, increasing the total contract value by $14,299.20 to a new not to exceed amount of $60,575.20 to include twelve (12) days of staff training in 2026 and extend the agreement expiration date through December 31, 2026, 2) and authorize the City Manager to sign all contract-related documents, to administer the contract, and to make minor modifications as necessary. 9. ITEM MOVED TO THE CONSENT AGENDA / I-1 2026 Clean Energy Implementation Plan / Approve and adopt the 2026 Clean Energy Implementation Plan. 10. ITEM MOVED TO THE CONSENT AGENDA / J-1 2026 Visit Port Angeles Tourism and Destination Marketing Contract / Authorize the City Manager to enter into contract with Wander Fuca, LLC for Visit Port Angeles Tourism and Marketing Services in 2026, 2) authorize the City Manager to approve and implement up to two one-year extensions of services with Wander Fuca, LLC and execute all contract documents, to administer the contract, and make minor modifications if necessary. 11. ITEM MOVED TO THE CONSENT AGENDA / J-2 Washington State Transportation Improvement Board Grant Acceptance: N Street Reconstruction – Project (TR0124) / Accept the Washington State Transportation Improvement Board (TIB) design and construction grant in the amount of $2,188,652, January 20, 2026 E - 4 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 4 of 9 allocate an additional $47,164 in TBD funds to project TR0124, and authorize the City Manager to execute a TIB grant agreement and make minor modifications as necessary. 12. ITEM MOVED TO THE CONSENT AGENDA / J-3 Extension of Criminal Justice Agreement with Clallam County / Approve a 6-month extension of the 2015 interlocal agreement for Criminal Justice services with Clallam County, with amendments, and 2) authorize the City Manager to approve a written extension agreement consistent with this memo, administer the extension agreement, and continue to negotiate with the county to achieve a new, long-term interlocal agreement for criminal justice services. Council discussion followed. Motion carried 7-0. It was moved by Schwab and seconded by Miller to: Suspend the rules for the duration of tonight's meeting to allow council members the ability to use the restroom without needing a designated break or making a motion of personal privilege. The motion failed 1-6 with Schwab in favor. The Mayor recessed the meeting for a break at 7:01 p.m. The meeting reconvened at 7:06 p.m. ORDINANCES NOT REQUIRING COUNCIL PUBLIC HEARINGS 1. 2045 Comprehensive Plan Periodic Update (CPA 25-0004) Deputy City Manager Goings presented the agenda item and introduced Natural Resources and Grant Administrator Courtney Bornsworth, who presented slides and spoke to the agenda item, stating the comprehensive plan establishes the community's long range vision for the next 20 years, adding that a major update to the plan every ten years is mandated under the Growth Management Act. She stated the Vision 2045 update reflects 18 months of extensive public outreach, engagement activities included twelve planning commission meetings, six stakeholder advisory committee meetings, a city-wide vision survey, targeted interviews, a three-day storefront studio, a draft planned workshop and citywide public survey, presentations to community and civic groups, a SEPA environmental impact statement, an open house, and a City Council Work Session. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3758 AN ORDINANCE of the City of Port Angeles, Washington, adopting the 2025 Periodic Update of the Vision 2045 Comprehensive Plan; adopting findings; providing for severability; and establishing an effective date. Council discussion followed. It was moved by Miller and seconded by Schwab to: Adopt the ordinance incorporating the amended policies as recommended in the memo. Council discussion followed. It was moved by Suggs and seconded by Carr to: Amend the motion to strike the language in the new policy LU 7.15, and replace with the following: Coordinate with the Klallam tribal governments as willing to develop a formal governing policy that facilitates codification of the Port Angeles municipal code, protecting and recognizing tribal self- governance and Klallam ability to protect treaty resources reserved in the 1855 Point-NO Point Treaty. Which is the law of the land. The policy will be jointly developed with Klallam and tribal governments and the City of Port Angeles and to be brought back to the City Council and to be completed before 2027. January 20, 2026 E - 5 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 5 of 9 Council discussion followed. It was moved by Schromen-Wawrin and seconded by Suggs to: Reinclude the struck language and change the proposed replacement language to a new policy or action. The motion to amend failed 4-3 with Carr, Schromen-Wawrin and Suggs in favor. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Carr to: Amend the comprehensive plan by adding a new policy, which would be in the land use housing section to the housing element, and that would be LU-H-to be determined section. Land capacity must be assigned to income levels based on local market affordability data. When capacity is insufficient for any income segment, the City must evaluate and implement appropriate responses, including affordable housing incentives, mandatory affordability requirements or partnerships with non-profit developers. The motion to amend failed 4-3 with Carr, Schromen-Wawrin and Suggs in favor. It was moved by Schromen-Wawrin and seconded by Carr to: Remove industrial zoning from critical areas on the future land use map and adjust land capacity analysis accordingly. The motion to amend failed 4-3 with Carr, Schromen-Wawrin and Suggs in favor. It was moved by Schromen-Wawrin and seconded by Carr to: Recommend a new policy, which would be C 1.11, which would state: Culverted stream reaches must be protected with the same buffers and standards as open stream channels. Development adjacent to converted streams shall maintain buffer vegetation and natural drainage patterns to preserve groundwater recharge, water quality functions and riparian connectivity, the City must prioritize daylighting of culverted streams during redevelopment. The motion to amend failed 2-5 with Carr and Schromen-Wawrin in favor. Schwab called the question and Miller seconded. The motion failed 4-3 with Carr, Schromen-Wawrin and Suggs opposed. Clerks note: This motion required two-thirds to pass. It was moved by Schromen-Wawrin and seconded by Carr to: Continue the matter to allow staff time to complete proper income disaggregation analysis showing actual capacity by income band, document existing or committed subsidies/incentives for each income level, and prepare a binding implementation timeline for regulatory and financial tools. The motion to continue failed 2-5 with Carr and Schromen-Wawrin in favor. The Mayor recessed the meeting for a break at 8:50 p.m. The meeting reconvened at 8:59 p.m. It was moved by Schromen-Wawrin and seconded by Carr to: Table the Comprehensive Plan motion until we revive it later in the meeting. The motion carried 7-0. Due to a number of those in attendance being to be present during the Councils consideration of the Lodging Tax Advisory Committee matter, the Mayor moved to that agenda item. OTHER CONSIDERATIONS 1. 2026 Lodging Tax Advisory Committee Budget Recommendation January 20, 2026 E - 6 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 6 of 9 Deputy City Manager Goings presented the agenda item and introduced Natural Resources and Grant Administrator Courtney Bornsworth Courtney, who then presented slides and provided background on the matter. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Miller to: After the motion was made and amended, the Council considered the final motion: Adopt the recommendations from the Lodging Tax Advisory Committee and direct staff to bring to City Council prior to the next Lodging Tax Advisory Committee meeting and draft a Resolution to set policy for Lodging Tax Advisory Committee that includes fully funding the administrative costs of Lodging Tax administration and request the Finance Director include this item in the next formal budget amendment to the 2026 Budget, and approve the Lodging Tax Advisory Committee’s recommendation to open a second request for proposals for applications in 2026. The motion carried 7-0. SECOND PUBLIC COMMENT Glenn Barbiari, city resident, spoke about his letter to the City Council. John Worthington, residing outside the city limits, spoke about creeks, grants and fish culverts. Steve Pelayo, residing outside the city limits, spoke to Lodging Tax Advisory Committee administrative costs requested by the City. ORDINANCES NOT REQUIRING COUNCIL PUBLIC HEARINGS CONTINUED The Mayor returned to the discussion of the 2045 Comprehensive Plan Periodic Update proposed ordinance that had been placed on the table. It was moved by Schromen-Wawrin and seconded by Carr to: Add a new Comprehensive Plan policy and a new section to Housing Element Land Capacity Analysis: Policy H-##: "Emerg-ency shelters and emergency housing, as defined in RCW 36.70A.030, are permitted uses in all zones where residential dwelling units, hotels, or public facilities are allowed. The City may establish reasonable occupancy, spacing, and intensity requirements by ordinance to protect public health and safety, provided such requirements do not prevent the development of sufficient emergency housing beds and units to accommodate the City's allocated need as identified in the Housing Element." Add new section to Housing Element Land Capacity Analysis: STEP Housing Capacity and Zoning Compliance. Emergency housing, emergency shelters, permanent supportive housing, and transitional housing (collectively, STEP housing) are critical to addressing Port Angeles's emergency housing need of 200 units. Zoning Compliance: Emergency housing and emergency shelters are permitted uses (not conditional uses) in all zones where hotels are permitted, consistent with RCW 35.21.683. Land Capacity: The City has identified sufficient land capacity to accommodate 173 indoor emergency housing units and 299 permanent supportive housing units. Implementation Timeline: Any zoning code amendments required to achieve STEP housing compliance shall be adopted concurrently with CPA 25-0004 and REZ 25-0153, per RCW 36.70A.115. The motion to amend failed 3-4 with Carr, Schromen-Wawrin, and Suggs in favor. It was moved by Schromen-Wawrin and seconded by Carr to: January 20, 2026 E - 7 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 7 of 9 Remove non-binding words from the Critical Areas provisions, including “strives for” and “to the extent feasible”, and delete the phrase 'in State-designated Critical Areas' from Policies C-1.3, C-1.8, C-2.3, and LU-7.12 and replace with 'in critical areas' or 'in areas designated as critical areas under RCW 36.70A.172. It was moved by Schwab, discussion ensued, to: Adjourn and continue the meeting to the next day at 6:00 p.m. Council discussed the motion. Attorney Bloor provided guidance on the motion before the Council. Point of Order by Schromen-Wawrin, stating the motion was not seconded. The Clerk noted that discussion took place after the motion was made. The Mayor agreed that discussion took place after the motion was made. Schromen-Wawrin appealed the Mayor’s decision and it was seconded by Carr. The Council then took a vote if the Mayor's ruling should stand. The appeal of the decision of the Mayor was a tie at 3-3, therefore the Mayor’s decision was upheld. Point of Order by Schromen-Wawrin, stating the Council needed to move directly to the vote. Council returned to the motion to: Adjourn and continue the meeting to December 17th, 2026 at 6:00 p.m. The motion to adjourn failed 3-4 with Dexter, Hamilton, and Schwab. It was moved by Schromen-Wawrin and seconded by Suggs to: Extend the meeting until 10:30 p.m. The motion carried 6-1 with Hamilton opposed. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Carr to: After the amendment was amended, the Council considered the motion: To include, remove non-binding words from the Critical Areas provisions, including “strives for” and “to the extent feasible”, and delete the phrase 'in State-designated Critical Areas' from Policies C-1.3, C-1.8, C-2.3, and LU-7.12 and replace with 'in critical areas' or 'in areas designated as critical areas under RCW 36.70A.172 and add correct sentence grammar. The motion to amend failed with Carr, Schromen-Wawrin, and Suggs in favor. After all amendments were cleared, the Council returned to main motion that was moved by Miller and seconded by Schwab to: Adopt the ordinance incorporating amended policies as recommended in the staff memorandum. Final motion carried 5-2 with Dexter, Miller, Schromen-Wawrin, and Schwab in favor. It was moved by Suggs and seconded by Miller to: Direct staff to incorporate government-to-government relationships into the 2025-2026 Strategic plan as follows reach out and coordinate with Klallam tribal governments as willing to develop a formal governing policy that facilitates codification of the Port Angeles Municipal Code, protecting and recognizing tribal self-governance and Klallam ability to protect treaty resources reserved in the 1855 point no point treaty, which is the law of the land. The policy will be jointly developed with Klallam tribal governments and the City of Port Angeles and to be brought back to the City Council. Motion carried 7-0 2. Citywide Rezone for Vision 2045 Comprehensive Plan Periodic Update (REZ 25-0153) Deputy City Manager Goings presented the agenda item. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3759 January 20, 2026 E - 8 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 8 of 9 It was moved by Schromen-Wawrin and seconded by Carr to: Adopt the Ordinance amending the Official Zoning Map on a citywide basis to ensure consistency with the Vision 2045 Comprehensive Plan Periodic Update; adopting findings; providing for severability; and establishing an effective date. Motion carried 7-0. 3. 2025 Housing Action Plan Periodic Update (CPA 25-0112) Deputy City Manager Goings presented the agenda item. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3760 It was moved by Suggs and seconded by Carr to: Adopt an ordinance of the City of Port Angeles, Washington, updating the May 2019 Housing Action Plan through a 2025 Periodic Update; providing for severability; and establishing an effective date. Motion carried 7-0. 4. Municipal Code Amendment for Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, 17.20 of the Port Angeles Municipal Code – Implementing Co-living Housing (MCA 25-0124) Deputy City Manager Goings presented the agenda item. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3761 It was moved by Suggs and seconded by LSW to: Adopt an ordinance of the City of Port Angeles, Washington, implementing the requirements of RCW 36.70A.535 Co-Living Housing, amending Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, and 17.20 of the Port Angeles Municipal Code; providing for severability; and establishing an effective date. Motion carried 7-0. CITY COUNCIL REPORTS Council member Hamilton thanked Council member Schromen-Wawrin for his service. Council member Miller expressed appreciation for Council member Schromen-Wawrin’s work on Council. Deputy Mayor Carr recognized being encouraged to run for Council through Council member Schromen- Wawrin’s encouragement. Council member Schwab expressed his appreciation for Council member Schromen-Wawrin providing his point of view during discussion. Council member Suggs recognized Council member Schromen-Wawrin’s efforts working with native youth. Mayor Dexter expressed serving with Council member Schromen-Wawrin the last 8 years. Council member Schromen-Wawrin expressed his appreciation for the kind words. No other reports were given. January 20, 2026 E - 9 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 9 of 9 INFORMATION Manager West spoke on behalf of himself and staff regarding Council member Schromen-Wawrin’s public service over his last 8 years. ADJOURNMENT There being no further business to come before the Council, the Mayor adjourned the meeting at 10:33. _____________________________________ _______________________________ Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk Minutes were approved on: January 20, 2026 E - 10 CITY OF PORT ANGELES CITY COUNCIL Port Angeles, Washington December 16, 2025 This meeting was conducted as a hybrid meeting. CALL TO ORDER SPECIAL MEETING Mayor Dexter called the special meeting of the Port Angeles City Council to order at 5:30 p.m. Members Present: Mayor Dexter, Deputy Mayor Carr, Council Members Hamilton, Miller, Schromen- Wawrin, Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, Attorney Bloor, Clerk Martinez-Bailey. EXECUTIVE SESSION Based on input from City Attorney William Bloor, Mayor Dexter announced the need for an Executive Session. City Attorney William Bloor stated the Executive Session would be held under the authority of RCW 42.30110(1)(i) to discuss potential litigation with legal counsel until 5:55 p.m. The City Council moved to the Jack Pittis Conference room for 35 minutes. The meeting began at 5:30 p.m. At 5:55 p.m. the Executive Session meeting concluded and the City Council members moved back to the Council Chambers. ADJOURNMENT Mayor Dexter adjourned the Special Meeting at 5:55 p.m. CALL TO ORDER-REGULAR MEETING Mayor Dexter called the regular meeting of the Port Angeles City Council to order at 6:00 p.m. ROLL CALL Members Present: Mayor Dexter, Deputy Mayor Carr, Council Members Hamilton, Miller, Schromen- Wawrin (attending virtually), Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, Deputy City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, C. Delikat, J. Viada, S. Carrizosa, D. Sharp, S. Curtin, A. Fountain and M. Young. PLEDGE OF ALLEGIANCE Mayor Dexter led the Pledge of Allegiance to the Flag. CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS 1. Proclamation in Recognition of the Public Service of Schromen-Wawrin Mayor Dexter read a proclamation recognizing Schromen-public service as a Port Angeles City Council member from January 2018 to December 2025, recognizing many of his accomplishments over the last eight years. January 20, 2026 E - 11 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 2 of 9 PUBLIC COMMENT Kevin Russell, Port Angeles business owner, asked the Council to reconsider additions to the Comprehensive Plan, specifically adding FPIC matter and the net ecological gain and asked that anyone associated with a tribe recuse themselves. President of the Port Angeles Salmon Club, spoke to the LTAC matter on the agenda for a Memorial Day Halibut Derby and asked that the LTAC Committee. Susana Spock, on behalf of FutureWise, spoke in favor of the recommendations outlined in the packet as it relates to guidance offered by the Washington State Department of Fish and Wildlife and spoke to housing. Kelly Johnson, city resident and on behalf of Port Angeles Business Association, spoke to a letter submitted by the Port of Port Angeles and spoke in opposition of FPIC matter and net ecological gain. Mimi Smith Dvorak, city resident, handed Council documents that contain information related to adding the changes to the proposed ordinance that were added on November 18 violated the transparency of the comprehensive plan development, and quoted a WAC. Brad Griffith, contractor, brought a cross section of an engineered building material to show the City Council. Danny Stieger, city resident, read a statement related to the need for workforce growth and the need for increasing the Port Angeles housing stock. Timothy Dalton, Clallam County, spoke about housing solution concerns and the comprehensive planunder consideration. James Taylor, city resident, spoke about multifamily housing, and expressed opposition of the FPIC matter and the net ecological gain and said the actions taken on November 18 were beyond what were obligated, due to the lack of transparency. John Ralston, city resident, said that changes the Council were making cause builders challenges. And implied that the changes the City were making to the sidewalks caused the City to lose a development and spoke about a radio purchase. Susie Blake, city resident, spoke of concerns related to zoning changes, in opposition of FPIC matter and the net ecological gain. Kevin Cassara, spoke about the spoke about respect the individuals that they represent. John Worthington, residing outside the city limits, spoke about the Ennis Creek matter on the agenda and spoke about grant proposed. Lauren Beard, city resident, spoke in favor of FPIC matter and the net ecological gain. CONSENT AGENDA At the request of Council member Schwab, and after hearing no objection, the Mayor added I-1 2026 Clean Energy Implementation Plan, J-1 2026 Visit Port Angeles Tourism and Destination Marketing Contract, and J-2 Washington State Transportation Improvement Board Grant Acceptance: N Street Reconstruction Project (TR0124). At the request of Council member Miller, and after hearing no January 20, 2026 E - 12 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 3 of 9 objection, the Mayor added J-3 Extension of Criminal Justice Agreement with Clallam County to the Consent Agenda. It was moved by Suggs and seconded by Carr to approve the Consent Agenda to include: 1. City Council Minutes of December 2, 2025 / Approve 2. Expenditure Report: From November 22, 2025 to December 5, 2025 in the amount of $3,144,951.71 / Approve 3. Ennis Creek Fish Passage Grant Application, Resolution of Support / 1) Approve and Pass the Ennis Creek Fish Passage Applicant Authorization Resolution authorizing the City Manager to sign the grant application in support of the Ennis Creek Fish Barrier construction grant. /Pass Resolution # 12-25 4. Clallam County Board of Health Grant Acceptance 1) Accept the grant offered by Clallam County Behavioral Health Department in the amount of $348,080.43 for the expansion of the Port Angeles Overdose Response program, and 2) authorize the City Manager to sign the grant funding contract, to implement and approve all actions necessary to accomplish the purposes of the grant, and to make minor modifications to the contract if necessary. 5. Interagency Agreement Between WA Traffic Safety Commission and the Port Angeles Police Department / City of Port Angeles /1) Approve the Interagency Agreement between the Washington Traffic Safety Commission and the City of Port Angeles for its Police Department for the period of performance between October 1 st, 2025 and September 30, 2026, and 2) authorize the City Manager to sign and to implement all actions necessary to manage and administer the Agreement. 6. Assistance to Firefighters Grant Acceptance and Equipment Purchase / 1) Authorize the City Manager or their designee to sign the Department of Homeland Security Assistance to Firefighters Grant and 2) make minor modifications to the agreement, if necessary, to ensure compliance with the grant requirements. 7. Fire Department Co-Response Innovation Grant /1) Authorize the City Manager to accept the Response program, 2) Authorize the City Manager to sign the grant funding contract, to implement and approve all actions necessary to accomplish the purposes of the grant, and to make minor modifications to the contract if necessary and 2) The BHCORE grant contract requirements are expected to be similar to those of the 2024 BHCORE City Council-approved grant award. 8. Northwest Safety Services, LLC Service Contract SVC-2022-66 Amendment No. 4 / 1) Approve amendment no. 4 to service contract with Northwest Safety Services, LLC, SVC-2022-66, increasing the total contract value by $14,299.20 to a new not to exceed amount of $60,575.20 to include twelve (12) days of staff training in 2026 and extend the agreement expiration date through December 31, 2026, 2) and authorize the City Manager to sign all contract-related documents, to administer the contract, and to make minor modifications as necessary. 9. ITEM MOVED TO THE CONSENT AGENDA / I-1 2026 Clean Energy Implementation Plan / Approve and adopt the 2026 Clean Energy Implementation Plan. 10. ITEM MOVED TO THE CONSENT AGENDA / J-1 2026 Visit Port Angeles Tourism and Destination Marketing Contract / Authorize the City Manager to enter into contract with Wander Fuca, LLC for Visit Port Angeles Tourism and Marketing Services in 2026, 2) authorize the City Manager to approve and implement up to two one-year extensions of services with Wander Fuca, LLC and execute all contract documents, to administer the contract, and make minor modifications if necessary. 11. ITEM MOVED TO THE CONSENT AGENDA / J-2 Washington State Transportation Improvement Board Grant Acceptance: N Street Reconstruction Project (TR0124) / Accept the Washington State Transportation Improvement Board (TIB) design and construction grant in the amount of $2,188,652, January 20, 2026 E - 13 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 4 of 9 allocate an additional $47,164 in TBD funds to project TR0124, and authorize the City Manager to execute a TIB grant agreement and make minor modifications as necessary. 12. ITEM MOVED TO THE CONSENT AGENDA / J-3 Extension of Criminal Justice Agreement with Clallam County / Approve a 6-month extension of the 2015 interlocal agreement for Criminal Justice services with Clallam County, with amendments, and 2) authorize the City Manager to approve a written extension agreement consistent with this memo, administer the extension agreement, and continue to negotiate with the county to achieve a new, long-term interlocal agreement for criminal justice services. Council discussion followed. Motion carried 7-0. It was moved by Schwab and seconded by Miller to: Suspend the rules for the duration of tonight's meeting to allow council members the ability to use the restroom without needing a designated break or making a motion of personal privilege. The motion failed 1-6 with Schwab in favor. The Mayor recessed the meeting for a break at 7:01 p.m. The meeting reconvened at 7:06 p.m. ORDINANCES NOT REQUIRING COUNCIL PUBLIC HEARINGS 1. 2045 Comprehensive Plan Periodic Update (CPA 25-0004) Deputy City Manager Goings presented the agenda item and introduced Natural Resources and Grant Administrator Courtney Bornsworth, who presented slides and spoke to the agenda item, stating the comprehensive plan establishes the community's long range vision for the next 20 years, adding that a major update to the plan every ten years is mandated under the Growth Management Act. She stated the Vision 2045 update reflects 18 months of extensive public outreach, engagement activities included twelve planning commission meetings, six stakeholder advisory committee meetings, a city-wide vision survey, targeted interviews, a three-day storefront studio, a draft planned workshop and citywide public survey, presentations to community and civic groups, a SEPA environmental impact statement, an open house, and a City Council Work Session. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3758 AN ORDINANCE of the City of Port Angeles, Washington, adopting the 2025 Periodic Update of the Vision 2045 Comprehensive Plan; adopting findings; providing for severability; and establishing an effective date. Council discussion followed. It was moved by Miller and seconded by Schwab to: Adopt the ordinance incorporating the amended policies as recommended in the memo. Council discussion followed. It was moved by Suggs and seconded by Carr to: Amend the motion to strike the language in the new policy LU 7.15, and replace with the following: Coordinate with the Klallam tribal governments as willing to develop a formal governing policy that facilitates codification of the Port Angeles municipal code, protecting and recognizing tribal self- governance and Klallam ability to protect treaty resources reserved in the 1855 Point-NO Point Treaty. Which is the law of the land. The policy will be jointly developed with Klallam and tribal governments and the City of Port Angeles and to be brought back to the City Council and to be completed before 2027. January 20, 2026 E - 14 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 5 of 9 Council discussion followed. It was moved by Schromen-Wawrin and seconded by Suggs to: Amend the amendment to reinclude the struck language and change the proposed replacement language to a new policy or action. The motion to amend failed 4-3 with Carr, Schromen-Wawrin and Suggs in favor. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Carr to: Amend the comprehensive plan by adding a new policy, which would be in the land use housing section to the housing element, and that would be LU-H-to be determined section. Land capacity must be assigned to income levels based on local market affordability data. When capacity is insufficient for any income segment, the City must evaluate and implement appropriate responses, including affordable housing incentives, mandatory affordability requirements or partnerships with non-profit developers. The motion to amend failed 4-3 with Carr, Schromen-Wawrin and Suggs in favor. It was moved by Schromen-Wawrin and seconded by Carr to: Remove industrial zoning from critical areas on the future land use map and adjust land capacity analysis accordingly. The motion to amend failed 4-3 with Carr, Schromen-Wawrin and Suggs in favor. It was moved by Schromen-Wawrin and seconded by Carr to: Recommend a new policy, which would be C 1.11, which would state: Culverted stream reaches must be protected with the same buffers and standards as open stream channels. Development adjacent to converted streams shall maintain buffer vegetation and natural drainage patterns to preserve groundwater recharge, water quality functions and riparian connectivity, the City must prioritize daylighting of culverted streams during redevelopment. The motion to amend failed 2-5 with Carr and Schromen-Wawrin in favor. Schwab called the question and Miller seconded. The motion failed 4-3 with Carr, Schromen-Wawrin and Suggs opposed. Clerks note: This motion required two-thirds to pass. It was moved by Schromen-Wawrin and seconded by Carr to: Continue the matter to allow staff time to complete proper income disaggregation analysis showing actual capacity by income band, document existing or committed subsidies/incentives for each income level, and prepare a binding implementation timeline for regulatory and financial tools. The motion to continue failed 2-5 with Carr and Schromen-Wawrin in favor. The Mayor recessed the meeting for a break at 8:50 p.m. The meeting reconvened at 8:59 p.m. It was moved by Schromen-Wawrin and seconded by Carr to: Table the Comprehensive Plan motion until we revive it later in the meeting. The motion carried 7-0. Due to a number of those in attendance being to be present during the Councils consideration of the Lodging Tax Advisory Committee matter, the Mayor moved to that agenda item. OTHER CONSIDERATIONS January 20, 2026 E - 15 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 6 of 9 1. 2026 Lodging Tax Advisory Committee Budget Recommendation Deputy City Manager Goings presented the agenda item and introduced Natural Resources and Grant Administrator Courtney Bornsworth Courtney, who then presented slides and provided background on the matter. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Miller to: After the motion was made and amended, the Council considered the final motion: Adopt the recommendations from the Lodging Tax Advisory Committee and direct staff to bring to City Council prior to the next Lodging Tax Advisory Committee meeting and draft a Resolution to set policy for Lodging Tax Advisory Committee that includes fully funding the administrative costs of Lodging Tax administration and request the Finance Director include this item in the next formal budget amendment to request for proposals for applications in 2026. The motion carried 7-0. SECOND PUBLIC COMMENT Glenn Barbiari, city resident, spoke about his letter to the City Council. John Worthington, residing outside the city limits, spoke about creeks, grants and fish culverts. Steve Pelayo, residing outside the city limits, spoke to Lodging Tax Advisory Committee administrative costs requested by the City. ORDINANCES NOT REQUIRING COUNCIL PUBLIC HEARINGS CONTINUED The Mayor returned to the discussion of the 2045 Comprehensive Plan Periodic Update proposed ordinance that had been placed on the table. It was moved by Schromen-Wawrin and seconded by Carr to: Add a new Comprehensive Plan policy and a new section to Housing Element Land Capacity Analysis: Policy H-##: "Emerg-ency shelters and emergency housing, as defined in RCW 36.70A.030, are permitted uses in all zones where residential dwelling units, hotels, or public facilities are allowed. The City may establish reasonable occupancy, spacing, and intensity requirements by ordinance to protect public health and safety, provided such requirements do not prevent the development of sufficient emergency housing beds and units to accommodate the City's allocated need as identified in the Housing Element." Add new section to Housing Element Land Capacity Analysis: STEP Housing Capacity and Zoning Compliance. Emergency housing, emergency shelters, permanent supportive housing, and transitional housing (collectively, STEP housing) are critical to addressing Port Angeles's emergency housing need of 200 units. Zoning Compliance: Emergency housing and emergency shelters are permitted uses (not conditional uses) in all zones where hotels are permitted, consistent with RCW 35.21.683. Land Capacity: The City has identified sufficient land capacity to accommodate 173 indoor emergency housing units and 299 permanent supportive housing units. Implementation Timeline: Any zoning code amendments required to achieve STEP housing compliance shall be adopted concurrently with CPA 25-0004 and REZ 25-0153, per RCW 36.70A.115. The motion to amend failed 3-4 with Carr, Schromen-Wawrin, and Suggs in favor. It was moved by Schromen-Wawrin and seconded by Carr to: January 20, 2026 E - 16 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 7 of 9 Remove non- and delete the phrase 'in State-designated Critical Areas' from Policies C-1.3, C-1.8, C-2.3, and LU-7.12 and replace with 'in critical areas' or 'in areas designated as critical areas under RCW 36.70A.172. It was moved by Schwab, discussion ensued, to: Adjourn and continue the meeting to the next day at 6:00 p.m. Council discussed the motion. Attorney Bloor provided guidance on the motion before the Council. Point of Order by Schromen-Wawrin, stating the motion was not seconded. The Clerk noted that discussion took place after the motion was made. The Mayor agreed that discussion took place after the motion was made. Schromen- The Council then took a vote if the Mayor's ruling should stand. The appeal of the decision of the Mayor was a tie at 3- Point of Order by Schromen-Wawrin, stating the Council needed to move directly to the vote. Council returned to the motion to: Adjourn and continue the meeting to December 17th, 2026 at 6:00 p.m. The motion to adjourn failed 3-4 with Dexter, Hamilton, and Schwab. It was moved by Schromen-Wawrin and seconded by Suggs to: Extend the meeting until 10:30 p.m. The motion carried 6-1 with Hamilton opposed. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Carr to: After the amendment was amended, the Council considered the motion: To include, remove non- the phrase 'in State-designated Critical Areas' from Policies C-1.3, C-1.8, C-2.3, and LU-7.12 and replace with 'in critical areas' or 'in areas designated as critical areas under RCW 36.70A.172 and add correct sentence grammar. The motion to amend failed with Carr, Schromen-Wawrin, and Suggs in favor. After all amendments were cleared, the Council returned to main motion that was moved by Miller and seconded by Schwab to: Adopt the ordinance incorporating amended policies as recommended in the staff memorandum. Final motion carried 5-2 with Dexter, Miller, Schromen-Wawrin, and Schwab in favor. It was moved by Suggs and seconded by Miller to: Direct staff to incorporate government-to-government relationships into the 2025-2026 Strategic plan as follows reach out and coordinate with Klallam tribal governments as willing to develop a formal governing policy that facilitates codification of the Port Angeles Municipal Code, protecting and recognizing tribal self-governance and Klallam ability to protect treaty resources reserved in the 1855 point no point treaty, which is the law of the land. The policy will be jointly developed with Klallam tribal governments and the City of Port Angeles and to be brought back to the City Council. Motion carried 7-0 2. Citywide Rezone for Vision 2045 Comprehensive Plan Periodic Update (REZ 25-0153) Deputy City Manager Goings presented the agenda item. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3759 January 20, 2026 E - 17 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 8 of 9 It was moved by Schromen-Wawrin and seconded by Carr to: Adopt the Ordinance amending the Official Zoning Map on a citywide basis to ensure consistency with the Vision 2045 Comprehensive Plan Periodic Update; adopting findings; providing for severability; and establishing an effective date. Motion carried 7-0. 3. 2025 Housing Action Plan Periodic Update (CPA 25-0112) Deputy City Manager Goings presented the agenda item. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3760 It was moved by Suggs and seconded by Carr to: Adopt an ordinance of the City of Port Angeles, Washington, updating the May 2019 Housing Action Plan through a 2025 Periodic Update; providing for severability; and establishing an effective date. Motion carried 7-0. 4. Municipal Code Amendment for Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, 17.20 of the Port Angeles Municipal Code Implementing Co-living Housing (MCA 25-0124) Deputy City Manager Goings presented the agenda item. Mayor Dexter conducted a second reading of the ordinance by title, entitled, ORDINANCE NO. 3761 It was moved by Suggs and seconded by LSW to: Adopt an ordinance of the City of Port Angeles, Washington, implementing the requirements of RCW 36.70A.535 Co-Living Housing, amending Chapters 17.08, 17.10, 17.11, 17.12, 17.14, 17.15, and 17.20 of the Port Angeles Municipal Code; providing for severability; and establishing an effective date. Motion carried 7-0. CITY COUNCIL REPORTS Council member Hamilton thanked Council member Schromen-Wawrin for his service. Council member Miller expressed appreciation for Council member Schromen-Wawri work on Council. Deputy Mayor Carr recognized being encouraged to run for Council through Council member Schromen- Wawrin encouragement. Council member Schwab expressed his appreciation for Council member Schromen-Wawrin providing his point of view during discussion. Council member Suggs recognized Council member Schromen-Wawrin efforts working with native youth. Mayor Dexter expressed serving with Council member Schromen-Wawrin the last 8 years. Council member Schromen-Wawrin expressed his appreciation for the kind words. No other reports were given. January 20, 2026 E - 18 PORT ANGELES CITY COUNCIL MEETING December 16, 2025 Page 9 of 9 INFORMATION Manager West spoke on behalf of himself and staff regarding Council member Schromen-Wawrin public service over his last 8 years. ADJOURNMENT There being no further business to come before the Council, the Mayor adjourned the meeting at 10:33. _____________________________________ _______________________________ Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk Minutes were approved on: January 20, 2026 E - 19 January 20, 2026 E - 20 January 20, 2026 E - 21 January 20, 2026 E - 22 January 20, 2026 E - 23 January 20, 2026 E - 24 January 20, 2026 E - 25 January 20, 2026 E - 26 January 20, 2026 E - 27 January 20, 2026 E - 28 January 20, 2026 E - 29 January 20, 2026 E - 30 January 20, 2026 E - 31 January 20, 2026 E - 32 January 20, 2026 E - 33 January 20, 2026 E - 34 January 20, 2026 E - 35 January 20, 2026 E - 36 January 20, 2026 E - 37 January 20, 2026 E - 38 January 20, 2026 E - 39 January 20, 2026 E - 40 January 20, 2026 E - 41 January 20, 2026 E - 42 January 20, 2026 E - 43 January 20, 2026 E - 44 January 20, 2026 E - 45 January 20, 2026 E - 46 January 20, 2026 E - 47 January 20, 2026 E - 48 January 20, 2026 E - 49 January 20, 2026 E - 50 January 20, 2026 E - 51 January 20, 2026 E - 52 January 20, 2026 E - 53 January 20, 2026 E - 54 January 20, 2026 E - 55 January 20, 2026 E - 56 Date: January 20, 2026 To: City Council From: Scott Curtin,Director of Public Works & Utilities Subject: Landfill Seawall Beach Nourishment Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This proposal directly aligns with Strategic Plan Focus Area #2 Citywide Resource Optimization, and specifically furthers Goal F Stabilize utility resources for changing environments. Background / Analysis: (WDFW) for its recurring beach nourishment originates from a Shoreline Conditional Use Permit issued by the Department of Ecology for construction of the landfill seawall. The Shoreline permit required annual placement of beach nourishment material along the landfill seawall to offset shoreline hardening impacts, maintain beach grade, and sediment composition. In March of 2025, Staff reached out to Washington State Regulators seeking an alternative to Beach Nourishment. At an April 2025 meeting, Staff met with WDFW, Ecology, and Clallam County to discuss the existing mitigation requirement. Regulators expressed openness to eliminating the nourishment requirement if an alternative mitigation pathway could be established. Summary: With the Final Acceptance of the 2024 Landfill Beach Nourishment Contract, City Council directed City Staff to approach Washington State regulators to request elimination of the recurring Port Angeles Landfill Seawall Beach Nourishment Permit Requirement. Over the past year, City staff have been pursuing this objective and have negotiated a path forward with the Department of Ecology. Strategic Plan:This proposal directly aligns with Strategic Focus Area #2 Citywide Resource Optimization, and specifically furthers Goal F. Funding: Funds necessary to pursue this objective are in the 2025/26 Landfill Repairs & Maintenance budget under Beach Nourishment (404-7585-537-4810), the 2025 budget will be rolled forward in the first quarter 2026 budget supplemental. Recommendation: 1) Authorize Staff to send a favorable response detailed in their December 30, 2025, letter, pausing the beach nourishment requirement of Shoreline Conditional Use Permit #2005-SW-02799 and proceed with the development of an alternative compensatory mitigation plan. January 20, 2026 E - 57 Since conditions at the site have changed and the beach nourishment is not accomplishing the intended purpose, Ecology agreed to pause the Shoreline Conditional Use P beach nourishment . On December 9, 2025, staff presented to the Utility Advisory Committee the development of alternative compensatory mitigation methods to eliminate the recurring Port Angeles Landfill Seawall Beach Nourishment Permit Requirement. The Utility Advisory Committee made a unanimous motion to support the City executing a Memorandum of Understanding (MOU) with the Washington State Department of Ecology, suspending the beach nourishment requirement of Shoreline Conditional Use Permit #2005-SW- 02799 and authorize staff to proceed with development and evaluation of alternative compensatory In lieu of executing a Memorandum of Understanding, the Washington State Department of Ecology agreed to pause the beach nourishment requirements while the City finds an alternative mitigation method. As part of this agreement the City is required to take the following actions: 1. Provide a timeline for developing and implementing the new mitigation plan. 2. Stay in regular communication with Ecology and WDFW, providing updates at each step of the above timeline. The following is a preliminary timeline which has been developed by Public Works: January 2026 - Seek City Council authorization to pursue an alternative compensatory mitigation plan. February March 2026 - Develop a Request for Qualifications document, seeking qualified professional services support for the development of alternative compensatory mitigation. March April 2026 - Review and Evaluate Statements of Qualifications, interview prospective candidates. April June 2026 - Develop Professional Service Agreement Scope of Work with selected Consultant. June 2026 - Seek City Council Authorization to Award the Professional Service Agreement. July 2026 December 2027 Work with selected Consultant to develop an alternative compensatory mitigation plan. January 2028 Present mitigation proposal to Ecology for approval and apply for revision of the Shoreline Conditional Use Permit. Funding Overview: Funds necessary to pursue this objective are in the 2025/26 Landfill Repairs & Maintenance budget under Beach Nourishment (404-7585-537-4810), the 2025 budget will be rolled forward in the first quarter 2026 budget supplemental. Attachment: December 30, 2025 Department of Ecology Letter RE: PALF January 20, 2026 E - 58 December 30, 2025 Dear Lucio Baack, On December 15, 2005, the Department of Ecology (Ecology) issued Conditional Use Permit #2005- SW-02799 Condition 4 of the permit required ongoing beach nourishment “within a prescribed range that ” In the years sincethe CUP was conditionally approved, the aggradation of sediment at the mitigation site following the Elwha Dam removal has reduced the need for annual placement of beach nourishment for the purpose of seawall toe armor protection observations indicate that the placed sediment is not consistently achieving its intended ecological the habitats of non- On March 21, 2025, the City reached out to Ecology requesting an alteration of the CUP conditions of approval, including removing the requirement to nourish the beach in front of the seawall and replacing it beach nourishment is not accomplishing the intended purpose, Ecology agrees to pause the CUP’s if the City takes the following actions: Provide a timeline for developing and implementing Stay in regular communication with Ecology and WDFW, providing updates at each step of State shoreline rules require a revision to permits when changes “alter the project in a manner that relates to its conformance to the terms and conditions of the permit” (WAC 173-27-When the mitigation proposal is complete and approved by Ecology, the City will need to apply for a revision Sincerely, January 20, 2026 E - 59 Lizzie Carp Wetland/Shoreline Specialist Shorelands and Environmental Assistance Program January 20, 2026 E - 60 Date: January 20, 2026 To: City Council From: Scott Curtin,Director of Public Works & Utilities Subject: 8 th Street Paving Project CON-2024-05 (TR0119) - Final Acceptance Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This project directly aligns with Strategic Focus Area #4 Infrastructure Development, Maintenance, and Connectivity and furthers the approved 2026 - 2031 Capital Facilities Plan through the 8th Street Paving Project TR0119. Background / Analysis:On January 17, 2023, City Council accepted a grant from the Washington State Transportation Improvement Board (TIB) for the design and construction of the TR0119 8th Street Paving Project. On December 3, 2024, city staff opened three bids with the lowest responsive and responsible bidder being Titan Earthwork, LLC. On December 17, 2024, City Council awarded a construction contract to Titan Earthwork in the amount of $2,117,692.00. The completed project includes the following improvements: A 2-inch asphalt mill and fill of 8th Street from Lincoln Street to Tumwater Bridge Addition of two (2) bike lanes connecting the Lincoln Street safety project and the current bike lanes on the 8th Street Bridges. Treatment of both 8 th Street bridges that sealed the concrete deck from water intrusion. Replacement of existing sidewalk curb ramps to meet ADA standards as required and upgrade pedestrian push buttons at Cherry and Pine Street. One change order was executed for minor variations in quantities actually installed on the project. The project was inspected on October 22, 2025, by City staff and confirmed to be completed and in Summary: Staff is seeking City Council final acceptance for the work performed on the 8 th Street Paving project by Titan Earthwork, LLC of Pacific, WA. The work was inspected, confirmed to be complete, and is ready for acceptance by City Council with the final project costs amounting to $2,108,299.25, including taxes. A contract bond was provided by Titan Earthwork in the amount of $2,117,692.00. Strategic Plan: This project directly aligns with Strategic Focus Area #4 Infrastructure Development, Maintenance, and Connectivity. Funding: The City was successful in obtaining a Washington State Transportation Improvement Board (TIB) grant in the amount of $1,674,761.00 with a required minimum City match of $520,000 for this project. After all expense the final cost share for the project was $1,674,761 and the final cost share was $541,152. Recommendation: 1) Accept the 8 th Street Paving Project (CON-204-05) as complete, and 2) authorize staff to proceed with project closeout and release the contract bond upon receipt of all required clearances. January 20, 2026 E - 61 accordance with the terms of the construction contract. Funding Overview: The City was successful in obtaining a Washington State Transportation Improvement Board (TIB) grant in the amount of $1,674,761.00. Local funding is available in the approved 2026-2031 Capital Facilities Plan for the 8th Street Paving Project TR0119 in the amount of $541,152. Total combined funds available for construction are $2,215,913. Project Cost Summary Original Contract Amount Change Orders (1) Unit Quantity Variations Final Cost Project Cost Variance $2,117,692.00 ($9,392.75)$0 $2,108,299.25 -0.44% City staff recommends City Council accept the 8th Street Paving Project CON 2024-05 as complete and authorize staff to proceed with project closeout and release the retainage bond upon receipt of all required clearances. Attachment(s):Photo Report. January 20, 2026 E - 62 January 20, 2026 E - 63 Date: January 20, 2026 To: City Council From: Scott Curtin,Director of Public Works & Utilities Subject: Marine Drive Paving Project, Final Acceptance TR0324 Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This project directly aligns with Strategic Focus Area #4 Infrastructure Development, Maintenance, and Connectivity, and furthers the approved 2026-2031 Capital Facilities Plan through the Marine Drive Paving Project TR0324. Background / Analysis:On December 17, 2024, City Council accepted a grant from the Washington State Transportation Improvement Board (TIB) for the design and construction of the TR0324 Marine Drive Paving Project in the amount of $531,248.00. On June 17, 2025, City Council awarded a bid in the amount of $644,877.00 to Lakeside Industries of Port Angeles, WA, who was the lowest responsive and responsible bidder. The completed project includes the following improvements: A 2-inch asphalt mill and overlay of Marine Drive from Hill Street to the Mill Bridge to correct surface conditions. Upgrade of existing sidewalk curb ramps to meet ADA standards The project was inspected by City staff during construction and conforms to the approved project plans and specification. The project was successfully completed 19% under available budget. City staff recommend City Council accept the Marine Drive Paving Project TR0324 as complete and authorize staff to proceed with project closeout and release the retainage bond upon receipt of all required clearances. Summary: Staff is seeking City Council final acceptance for the work performed on the Marine Drive Paving project by Lakeside Industries of Port Angeles, WA. The work was inspected, confirmed to be complete, and is ready for acceptance by City Council with the final project cost amounting to $519,544.12, including taxes. A 5% retainage has been withheld. Strategic Plan: This project directly aligns with Strategic Focus Area #4 Infrastructure Development, Maintenance, and Connectivity. Funding: The approved 2026-2031 Capital Facilities Plan includes funding for Marine Drive Paving Project TR0324. The City was successful in obtaining a Washington State Transportation Improvement Board (TIB) grant in the amount of $531,248.00 with a required local City match of $177,082 for this project. The total construction cost of the project is $519,544.12. Recommendation: 1) Accept the Marine Drive Paving Project (TR0324) as complete, and 2) authorize staff to proceed with project closeout, and release the retainage bond upon receipt of all required clearances. January 20, 2026 E - 64 Funding Overview: The approved 2026-2031 Capital Facilities Plan includes funding for the Marine Drive Paving Project TR0324. The City was successful in obtaining a Washington State Transportation Improvement Board (TIB) grant in the amount of $531,248.00 with a required City match of $177,082 for this project. The total construction cost of the project based on actual project quantities is $519,544.12 which is 19% under the projected budget. Below is the cost summary table: Project Cost Summary Original Contract Amount Change Orders Unit Quantity Variations Final Cost Project Cost Variance $644,877.00 $0.00 ($125,332.88)$519,544.12 -19.44% Attachment(s): Photo Report January 20, 2026 E - 65 January 20, 2026 E - 66 1 Date: January 20, 2026 To: City Council From: Calvin W. Goings, Deputy City Manager Shannen C. Cartmel,CED Manager Ben Braudrick, Planning Supervisor Jalyn Boado, Housing Administrator Subject: Accepting the Washington State Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25-94110-003 Relationship to Strategic Plan:The 2025–2026 Strategic Plan (Resolution 10-24), approved by the City Council on October 1, 2024, identifies housing as a core priority. This proposal directly advances Strategic Focus Area #3 – Housing, particularly Goal C, by implementing a multifamily housing pilot project identified in the 2025 Housing Action Plan and Capital Facilities Plan. Background / Analysis: The City of Port Angeles has launched the Multifamily Housing Pipeline Pilot Project to address the shortage of multifamily rental housing, increase affordable housing opportunities, promote efficient land use, and support redevelopment along the C Street corridor. The pilot project is intended to remove key barriers to multifamily development, specifically land acquisition, site readiness, and early design costs, while demonstrating the feasibility of higher-density, mixed-use development in commercially zoned areas throughout the city. Summary: The City is leading predevelopment efforts on a high-density multifamily pilot project at 935 West 10 th Street, Port Angeles, WA. This initiative is part of Task #8 of the 2025 Housing Action Plan, which identifies the critical need for a multifamily housing pipeline pilot project. The City of Port Angeles has received a $1,988,500.00 Housing Trust Fund Grant from the Department of Commerce to aid this initiative. The grant will fund key activities, including pre-design, programming, design development, engineering, site preparation, developer selection, and site disposition. Strategic Plan:Strategic Focus Area #3 - Goal C, Measure 1. Funding: The Washington State Department of Commerce grant totals $1,988,500.00 for predevelopment work at 935 West 10th Street, Port Angeles, WA 98362. There is no match requirement for this grant. Recommendation: 1) Accept the Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25-94110-003 in the amount of $1,988,500.00 for predevelopment work at 935 West 10th Street, 2) authorize the City Manager to negotiate and execute all necessary grant documents and make modifications, and 3) direct staff to modify the timelines associated with this project in the 2025-2026 City Strategic Plan (Resolution 10-24) to ensure consistency with the timeline detailed in Table 1. January 20, 2026 E - 67 2 On April 30, 2025, the City purchased the property located at 935 West 10th Street as an initial step toward implementing Task #8 of the 2025 Housing Action Plan, which calls for a demonstration project that maximizes multifamily capacity in a commercially focused, transit-accessible location. The 14,000- square-foot site at the intersection of 10th and C Streets is well-positioned for a multifamily development. The site benefits from proximity to public transportation, existing utilities, and zoning that allows high- density residential and mixed-use development. Under this pilot approach, the City will initiate two phases of development. Phase One includes predevelopment activities, including pre-design and the completion of building and site design through the selection of a design professional via a Request for Qualifications (RFQ). Phase Two will initiate a Request for Proposals (RFP) to select a qualified multifamily developer to complete site preparation and construction, and to enter into a contractual agreement with the City to either sell the property for a nominal fee; or enter into a long-term ground lease. Either option involves selecting a qualified, experienced multifamily housing developer through a competitive process. The developer selected will be responsible for all construction financing and costs. This pilot project is intended to demonstrate that multi-story, land-efficient multifamily development is viable in Port Angeles and can support a range of housing types while advancing broader community and economic development goals. The Washington State Department of Commerce requires the City to issue a RFQ by March 31, 2027, for project design and a subsequent RFP for developer selection by June 30, 2027. Please note that City staff do not believe the Commerce requested Promissory Note and Deed of Trust are appropriate, and will continue to raise this concern with agency representatives which is why the recommendation provides ample opportunity for continued negotiation of this issue. A high-level project timeline is shown below. Table 1: Grant Administration and Project Schedule Phase 2026 2027 2028 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 RFQ 10% Design 30% Design 60% Design 100% Design RFP Permitting Construction Through 2029 Funding Overview: The Washington State Department of Commerce has allocated a housing grant of $1,988,500.00 for predevelopment activities at the 935 West 10th Street site. The entity selected through the RFP process will be responsible for construction costs. There is no match requirement for this grant. Attachments: 1. WA Department of Commerce – Multifamily Housing Pipeline Grant Agreement 2. WA Department of Commerce – Multifamily Housing Pipeline Promissory Note 3. WA Department of Commerce – Multifamily Housing Pipeline Deed of Trust January 20, 2026 E - 68 Attachment 1 ________________________________________________________________________________________________________ Grant No. 25-94110-003 (Rev. May 2020) Page 1 of 21 Grant Agreement with CITY OF PORT ANGELES through Multifamily Housing Unit Grant Number: 25-94110-003 For PreDevelopment Technical Assistance Dated: Tuesday, January 20, 2026 January 20, 2026 E - 69 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 2 of 21 Table of Contents TABLE OF CONTENTS .............................................................................................................................................. 2 FACE SHEET ............................................................................................................................................................ 4 SPECIAL TERMS AND CONDITIONS ......................................................................................................................... 5 1. GRANT MANAGEMENT .................................................................................................................................... 5 2. ACKNOWLEDGEMENT OF CLIMATE COMMITMENT ACT FUNDING [INTENTIONALLY OMITTED] .................................................................................................................................................................. 5 3. COMPENSATION .............................................................................................................................................. 5 4. BILLING PROCEDURES AND PAYMENT ............................................................................................................. 5 5. SUBGRANTEE DATA COLLECTION .................................................................................................................... 6 6. INSURANCE ...................................................................................................................................................... 6 7. FRAUD AND OTHER LOSS REPORTING ............................................................................................................. 8 8. ORDER OF PRECEDENCE .................................................................................................................................. 8 9. PROMISSORY NOTE AND DEED OF TRUST........................................................................................................ 8 10. REIMBURSEMENT OF EXPENSES INCURRED PRIOR TO CONTRACT EXECUTION ......................................... 8 GENERAL TERMS AND CONDITIONS ....................................................................................................................... 9 1. DEFINITIONS .................................................................................................................................................... 9 2. ACCESS TO DATA .............................................................................................................................................. 9 3. ADVANCE PAYMENTS PROHIBITED .................................................................................................................. 9 4. ALL WRITINGS CONTAINED HEREIN ............................................................................................................... 10 5. AMENDMENTS .............................................................................................................................................. 10 6. AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, PUBLIC LAW 101-336, ALSO REFERRED TO AS THE 28 CFR PART 35 ............................................................................................................................................................. 10 7. ASSIGNMENT ................................................................................................................................................. 10 8. FEES .......................................................................................................................................... 10 9. CONFIDENTIALITY/SAFEGUARDING OF INFORMATION................................................................................. 10 10. CONFLICT OF INTEREST ............................................................................................................................. 11 11. COPYRIGHT ............................................................................................................................................... 11 12. DISPUTES .................................................................................................................................................. 11 13. DUPLICATE PAYMENT ............................................................................................................................... 12 14. GOVERNING LAW AND VENUE .................................................................................................................. 12 15. INDEMNIFICATION .................................................................................................................................... 12 16. INDEPENDENT CAPACITY OF THE GRANTEE .............................................................................................. 12 17. INDUSTRIAL INSURANCE COVERAGE ........................................................................................................ 13 18. LAWS ......................................................................................................................................................... 13 19. LICENSING, ACCREDITATION AND REGISTRATION .................................................................................... 13 20. LIMITATION OF AUTHORITY ...................................................................................................................... 13 21. NONDISCRIMINATION .............................................................................................................................. 13 22. PAY EQUITY ............................................................................................................................................... 14 23. POLITICAL ACTIVITIES................................................................................................................................ 14 24. PUBLICITY ................................................................................................................................................. 14 25. RECAPTURE ............................................................................................................................................... 14 26. RECORDS MAINTENANCE ......................................................................................................................... 15 27. REGISTRATION WITH DEPARTMENT OF REVENUE .................................................................................... 15 28. RIGHT OF INSPECTION .............................................................................................................................. 15 January 20, 2026 E - 70 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 3 of 21 29. SAVINGS .................................................................................................................................................... 15 30. SEVERABILITY ............................................................................................................................................ 15 31. SITE SECURITY ........................................................................................................................................... 15 32. SUBGRANTING/SUBCONTRACTING .......................................................................................................... 15 33. SURVIVAL .................................................................................................................................................. 16 34. TAXES ........................................................................................................................................................ 16 35. TERMINATION FOR CAUSE ........................................................................................................................ 16 36. TERMINATION FOR CONVENIENCE ........................................................................................................... 16 37. TERMINATION PROCEDURES .................................................................................................................... 16 38. TREATMENT OF ASSETS ............................................................................................................................ 17 39. WAIVER ..................................................................................................................................................... 18 ATTACHMENT A: SCOPE OF WORK ...................................................................................................................... 19 ATTACHMENT B: BUDGET .................................................................................................................................... 20 ATTACHMENT C: LOAN OR GRANT TERMS ........................................................................................................... 21 January 20, 2026 E - 71 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 4 of 21 Face Sheet Grant Number: 25-94110-003 Multifamily Housing Unit PreDevelopment Technical Assistance 1. Grantee 2. Grantee Doing Business As (as applicable) City of Port Angeles 321 East 5th Street Port Angeles, WA 98362 N/A 3. Grantee Representative 4. COMMERCE Representative Nathan West, City Manager Phone: (360) 417-4501 Email: nwest@cityofpa.us Darryl Holman, Project Manager Phone: (360) 725-2798 Email: darryl.holman@commerce.wa.gov 5. Grant Amount 6. Funding Source 7. Start Date 8. End Date $1,988,500.00 Federal:State:Other: N/A: Date of Last Signature Below 06/30/2027 9. Federal Funds (as applicable) N/A Federal Agency: N/A ALN N/A 10. Tax ID # 11. SWV # 12. UBI # 13. UEI # 91-6001266 SWV0007712-07 054-001-518 N/A 14. Grant Purpose To support predevelopment activities for the development of a high-density multifamily project located in Port Angeles, WA. Specifically, the Grant Amount will cover expenses related to Pre-Design/Programming and Design Development, Permitting Assistance/Compliance, Site Identification and Acquisition, Design and Engineering, Site Preparation, Developer Selection and Site Disposition. COMMERCE, defined as the Department of Commerce, and the Grantee, as defined above, acknowledge and accept the terms of this Grant and attachments and have executed this Grant on the date below to start as of the date and year referenced above. The rights and obligations of both parties to this Grant are governed by this Grant and the following other documents incorporated by reference: Grant Scope of Work, Attachment Budget, - Grant or Loan Terms FOR GRANTEE FOR COMMERCE Nathan West City Manager Signature Date Interim Assistant Director, Housing Division Date APPROVED AS TO FORM ONLY BY ASSISTANT ATTORNEY GENERAL APPROVAL ON FILE January 20, 2026 E - 72 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 5 of 21 Special Terms and Conditions 1.GRANT MANAGEMENT The Representative for each of the parties shall be responsible for and shall be the contact person for all communications and billings regarding the performance of this Grant. The Representative for COMMERCE and their contact information are identified on the Face Sheet of this Grant. The Representative for the Grantee and their contact information are identified on the Face Sheet of this Grant. 2.ACKNOWLEDGEMENT OF CLIMATE COMMITMENT ACT FUNDING [Intentionally Omitted] 3.COMPENSATION COMMERCE shall pay an amount not to $1,988,500.00 for the performance of all things necessary for or incidental to the performance of work as set forth in the Scope of Work. Grantee's compensation for services rendered shall be based on the terms of the Scope of Work and Budget. 4.BILLING PROCEDURES AND PAYMENT COMMERCE will pay Grantee upon acceptance of services provided and receipt of properly completed invoices, which shall be submitted to the Representative for COMMERCE not more often than monthly nor less than quarterly. The invoices shall describe and document, to COMMERCE's satisfaction, a description of the work performed, the progress of the project, and fees. The invoice shall include the Grant Number 25- 94110-003. If expenses are invoiced, provide a detailed breakdown of each type. A receipt must accompany any single expenses in the amount of $50.00 or more in order to receive reimbursement. Payment shall be considered timely if made by COMMERCE within thirty (30) calendar days after receipt of properly completed invoices. Payment shall be sent to the address designated by the Grantee. COMMERCE may, in its sole discretion, terminate the Grant or withhold payments claimed by the Grantee for services rendered if the Grantee fails to satisfactorily comply with any term or condition of this Grant. No payments in advance or in anticipation of services or supplies to be provided under this Agreement shall be made by COMMERCE. Invoices and End of Fiscal Year Invoices are due on the 20th of the month following the provision of services. Final invoices for a state fiscal year may be due sooner than the 20th and Commerce will provide notification of the end of fiscal year due date. The Grantee must invoice for all expenses from the beginning of the Grant through June 30, regardless of the Grant start and end date. Duplication of Billed Costs January 20, 2026 E - 73 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 6 of 21 The Grantee shall not bill COMMERCE for services performed under this Agreement, and COMMERCE shall not pay the Grantee, if the Grantee is entitled to payment or has been or will be paid by any other source, including grants, for that service. Disallowed Costs The Grantee is responsible for any audit exceptions or disallowed costs incurred by its own organization or that of its subgrantees. COMMERCE may, in its sole discretion, withhold ten percent (10%) from each payment until acceptance by COMMERCE of the final report (or completion of the project, etc.). 5.SUBGRANTEE DATA COLLECTION Grantee will submit reports, in a form and format to be provided by Commerce and at intervals as agreed by the parties, regarding work under this Grant performed by subgrantees and the portion of Grant funds expended for work performed by subgrantees, including but not necessarily limited to minority-owned, woman-owned, and veteran-owned business subgrantee grantee mean subgrantees of any tier. 6.INSURANCE The Grantee shall provide insurance coverage as set out in this section. The intent of the required insurance is to protect the state should there be any claims, suits, actions, costs, damages or expenses arising from any loss, or negligent or intentional act or omission of the Grantee or Subgrantee, or agents of either, while performing under the terms of this Grant. Failure to maintain the required insurance coverage may result in termination of this Grant. The insurance required shall be issued by an insurance company authorized to do business within the state of Washington. Except for Professional Liability or Errors and Omissions Insurance, the insurance shall name the state of Washington, its agents, officers, and employees as additional insureds under the insurance policy. All policies shall be primary to any other valid and collectable insurance. The Grantee insurance cancellation, non-renewal or modification. The Contractor shall submit a certificate of insurance to COMMERCE which outlines the coverage and limits defined in this insurance section within fifteen (15) calendar days of a written request by COMMERCE. The certifications shall show the insurance coverage, the designated beneficiary, who is covered, the amounts, the period of coverage, and that COMMERCE will be provided thirty (30) During the term of this Contract, if requested, the Contractor shall submit renewal certificates not less than thirty (30) calendar days prior to expiration of each policy required under this section. DO NOT send insurance certificates to COMMERCE unless requested by COMMERCE. Any certificates received by mail will be returned to sender unless the certificate identifies the contract number, contract manager name, and/or program name to which it applies. The Grantee shall provide insurance coverage that shall be maintained in full force and effect during the term of this Grant, as follows: Commercial General Liability Insurance Policy.Provide a Commercial General Liability Insurance Policy, including contractual liability, written on an occurrence basis, in adequate quantity to protect against legal liability arising out of Grant activity but no less than $2,000,000 per occurrence. Additionally, the Grantee is responsible for ensuring that any Subgrantees provide adequate insurance coverage for the activities arising out of subgrants. Cyber Liability Insurance: The Contractor shall maintain Cyber Liability Insurance. The Contractor shall maintain minimum limits of no less than $1,000,000 per occurrence to cover all activities by the January 20, 2026 E - 74 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 7 of 21 Contractor and licensed staff employed or under contract to the Contractor. The state of Washington, its agents, officers, and employees need not be named as additional insureds under this policy. Automobile Liability. In the event that performance pursuant to this Grant involves the use of vehicles, owned or operated by the Grantee or its Subgrantee, automobile liability insurance shall be required. The minimum limit for automobile liability is $1,000,000 per occurrence, using a Combined Single Limit for bodily injury and property damage. Professional Liability, Errors and Omissions Insurance. The Grantee shall maintain Professional Liability or Errors and Omissions Insurance. The Grantee shall maintain minimum limits of no less than $1,000,000 per occurrence to cover all activities by the Grantee and licensed staff employed or under Grant to the Grantee. The state of Washington, its agents, officers, and employees need not be named as additional insureds under this policy. Fidelity Insurance.Every officer, director, employee, or agent who is authorized to act on behalf of the Grantee for the purpose of receiving or depositing funds into program accounts or issuing financial documents, checks, or other instruments of payment for program costs shall be insured to provide protection against loss: A.The amount of fidelity coverage secured pursuant to this Grant shall be $100,000 or the highest of planned reimbursement for the Grant period, whichever is lowest. Fidelity insurance secured pursuant to this paragraph shall name COMMERCE as beneficiary. B.Subgrantees that receive $10,000 or more per year in funding through this Grant shall secure fidelity insurance as noted above. Fidelity insurance secured by Subgrantees pursuant to this paragraph shall name the Grantee as beneficiary. GRANTEES and Local Governments that Participate in a Self-Insurance Program. Self-Insured/Liability Pool or Self-Insured Risk Management Program With prior approval from COMMERCE, the GRANTEE may provide the coverage above under a self-insured/liability pool or self-insured risk management program. In order to obtain permission from COMMERCE, the GRANTEE shall provide: (1) a description of its self-insurance program, and (2) a certificate and/or letter of coverage that outlines coverage limits and deductibles. All self-insured risk management programs or self-insured/liability pool financial reports must comply with Generally Accepted Accounting Principles (GAAP) and adhere to accounting standards promulgated by: 1) Governmental Accounting Standards Board (GASB), 2) Financial Accounting Standards Board (FASB), and the aggregate Claim liability information reported on the balance sheet. The State of Washington, COMMERCE, its agents, and employees need not be named as additional insured under a self- insured property/liability pool, if the pool is prohibited from naming third parties as additional insured. GRANTEE shall provide annually to COMMERCE a summary of coverages and a letter of self -insured/liability pool or self- insured risk management program. Such annual summary of coverage and letter of self insurance will be provided on the anniversary of the start date of this Grant Agreement. January 20, 2026 E - 75 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 8 of 21 7.FRAUD AND OTHER LOSS REPORTING Grantee shall report in writing all known or suspected fraud or other loss of any funds or other property furnished under this Contract immediately or as soon as practicable to the Commerce Representative identified on the Face Sheet. 8.ORDER OF PRECEDENCE In the event of an inconsistency in this Grant, the inconsistency shall be resolved by giving precedence in the following order: Applicable federal and state of Washington statutes and regulations Special Terms and Conditions General Terms and Conditions Attachment A Scope of Work Attachment B Budget 9.PROMISSORY NOTE AND DEED OF TRUST All amounts loaned or granted as identified in Attachment C Loan or Grant Terms, shall be evidenced by and shall be secured by one or more deed(s) of Projects that include multiple properties. Each Deed of Trust shall be recorded in the county or counties in which the Property or Properties is or are located. The CONTRACTOR shall ensure that each original Deed of Trust shall be returned to the DEPARTMENT after recordation. The CONTRACTOR shall also ensure each original Promissory Note shall be returned to the DEPARTMENT at Contract execution. Each Deed of Trust shall secure the following: A. Payment in the amount of the Contract Amount, together with interest thereon according to the terms of each Promissory Note and Attachment C Loan or Grant Terms, including all renewals, modifications and extensions thereof, and B. Performance of each agreement, term and condition set forth in each Deed of Trust, Covenant, any Priority and Subordination Agreement executed in accordance with this Contract, and this Contract. 10.REIMBURSEMENT OF EXPENSES INCURRED PRIOR TO CONTRACT EXECUTION Contract Amount funds may be used to reimburse costs incurred prior to the execution of this contract, but not prior to March 30, 2024. Exceptions allowing the use of the Contract Amount to reimburse earlier expenses must be requested in writing and approved in advance of Contract execution. Unless otherwise noted in this Contract and unless the DEPARTMENT approved funds are to be drawn down at Contract execution, drawdown of funds shall be made on a reimbursement basis for expenses incurred after formal execution of this Contract. The CONTRACTOR shall provide appropriate requests. January 20, 2026 E - 76 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 9 of 21 General Terms and Conditions 1.DEFINITIONS As used throughout this Grant, the following terms shall have the meaning set forth below: A. behalf. B.Washington Department of Commerce. C.Grant means the entire written agreement between COMMERCE and the Grantee, including any Exhibits, documents, or materials incorporated by reference. L E-mail or Facsimile transmission of a signed copy of this Grant shall be the same as delivery of an original. D.shall mean the entity identified on the face sheet performing service(s) under this Grant, and shall include all employees and agents of the Grantee. E. limited to, i use or receipt of governmental services or other activities, addresses, telephone numbers, social security numbers, driver license numbers, other identifying numbers, and any financial identifiers, and Accountability Act of 1996 (HIPAA). F. G."Subgrantee/subcontractor" shall mean one not in the employment of the Grantee, who is performing all or part of those services under this Grant under a separate Grant with the Grantee grantee contractor grantee/subcontractor(s) in any tier. H.-federal entity that expends federal awards received from a pass-through entity to carry out a federal program, but does not include an individual that is a beneficiary of such a program. It also excludes vendors that receive federal funds in exchange for goods and/or services in the course of normal trade or commerce. I. COMMERCE; provides services under the grant only to those beneficiaries individually determined to be eligible by COMMERCE and, provides services on a fee-for-service or per- unit basis with contractual penalties if the entity fails to meet program performance standards. 2.ACCESS TO DATA In compliance with RCW 39.26.180, the Grantee shall provide access to data generated under this Grant to COMMERCE, the Joint Legislative Audit and Review Committee, and the Office of the State Auditor at no additional cost. This includes access to all information that supports the findings, conclusions, and recommendations of the Grantee methodology for those models. 3.ADVANCE PAYMENTS PROHIBITED No payments in advance of or in anticipation of goods or services to be provided under this Grant shall be made by COMMERCE. January 20, 2026 E - 77 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 10 of 21 4.ALL WRITINGS CONTAINED HEREIN This Grant contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Grant shall be deemed to exist or to bind any of the parties hereto. 5.AMENDMENTS This Grant may be amended by mutual agreement of the parties. Such amendments shall not be binding unless they are in writing and signed by personnel authorized to bind each of the parties. 6.AMERICANS WITH DISABILITIES ACT (ADA) OF 1990, PUBLIC LAW 101-336, also The Grantee must comply with the ADA, which provides comprehensive civil rights protection to individuals with disabilities in the areas of employment, public accommodations, state and local government services, and telecommunications. 7.ASSIGNMENT Neither this Grant, nor any claim arising under this Grant, shall be transferred or assigned by the Grantee without prior written consent of COMMERCE. 8. Unless expressly permitted under another provision of the Grant, in the event of litigation or other action brought to enforce Grant 9.CONFIDENTIALITY/SAFEGUARDING OF INFORMATION A.this section includes: i.All material provided to the Grantee by COMMERCE; ii.All material produced by the Grantee and iii.All Personal Information in the possession of the Grantee that may not be disclosed under state or federal law. B.The Grantee shall comply with all state and federal laws related to the use, sharing, transfer, sale, or disclosure of Confidential Information. The Grantee shall use Confidential Information solely for the purposes of this Grant and shall not use, share, transfer, sell or disclose any Confidential Information to any third party except with the prior written consent of COMMERCE or as may be required by law. The Grantee shall take all necessary steps to assure that Confidential Information is safeguarded to prevent unauthorized use, sharing, transfer, sale or disclosure of Confidential Information or violation of any state or federal laws related thereto. Upon request, the Grantee shall provide COMMERCE with its policies and procedures on confidentiality. COMMERCE may require changes to such policies and procedures as they apply to this Grant whenever COMMERCE reasonably determines that changes are necessary to prevent unauthorized disclosures. The Grantee shall make the changes within the time period specified by COMMERCE. Upon request, the Grantee shall immediately return to COMMERCE any Confidential Information that COMMERCE reasonably determines has not been adequately protected by the Grantee against unauthorized disclosure. C.Unauthorized Use or Disclosure. The Grantee shall notify COMMERCE within five (5) working days of any unauthorized use or disclosure of any confidential information, and shall take necessary steps to mitigate the harmful effects of such use or disclosure. January 20, 2026 E - 78 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 11 of 21 10.CONFLICT OF INTEREST Grantee must maintain and comply with written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. Grantee must comply with the following minimum requirements: A.No employee, officer, or agent may participate in the selection, award, or administration of a contract if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the Grantee may neither solicit nor accept gratuities, favors, or anything of monetary value from Grantees or parties to subcontracts and must comply with RCW 39.26.020. However, Grantee may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the Grantee. B.If the Grantee has a parent, affiliate, or subsidiary organization that is not a state, local government, or federally recognized tribe, the Grantee must also maintain written standards of conduct covering organizational conflicts of interest. Organizational conflicts of interest means that because of relationships with a parent company, affiliate, or subsidiary organization, the Grantee is unable or appears to be unable to be impartial in conducting a procurement action involving a related organization. 11.COPYRIGHT Unless otherwise provided, all Materials produced under this Grant shall be considered "works for hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE. COMMERCE shall be considered the author of such Materials. In the eve Grantee hereby irrevocably assigns all right, title, and interest in all Materials, including all intellectual property rights, moral rights, and rights of publicity to COMMERCE effective from the moment of creation of such Materials. pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, to transfer these rights. For Materials that are delivered under the Grant, but that incorporate pre-existing materials not produced under the Grant, the Grantee hereby grants to COMMERCE a nonexclusive, royalty-free, irrevocable license (with rights to sublicense to others) in such Materials to translate, reproduce, distribute, prepare derivative works, publicly perform, and publicly display. The Grantee warrants and represents that the Grantee has all rights and permissions, including intellectual property rights, moral rights and rights of publicity, necessary to grant such a license to COMMERCE. The Grantee shall exert all reasonable effort to advise COMMERCE, at the time of delivery of Materials furnished under this Grant, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this Grant. The Grantee shall provide COMMERCE with prompt written notice of each notice or claim of infringement received by the Grantee with respect to any Materials delivered under this Grant. COMMERCE shall have the right to modify or remove any restrictive markings placed upon the Materials by the Grantee. 12.DISPUTES Except as otherwise provided in this Grant, when a dispute arises between the parties and it cannot be resolved by direct negotiation, either party may request a dispute hearing with the Director of COMMERCE, who may designate a neutral person to decide the dispute. The request for a dispute hearing must: January 20, 2026 E - 79 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 12 of 21 be in writing; state the disputed issues; state the relative positions of the parties; state the Grantee's name, address, and Grant number; and Grant Representative within three (3) working days after the parties agree that they cannot resolve the dispute. The res The Director or designee shall review the written statements and reply in writing to both parties within ten (10) working days. The Director or designee may extend this period if necessary by notifying the parties. The decision shall not be admissible in any succeeding judicial or quasi-judicial proceeding. The parties agree that this dispute process shall precede any action in a judicial or quasi-judicial tribunal. Nothing in this Grant dispute resolution (ADR) method in addition to the dispute hearing procedure outlined above. 13.DUPLICATE PAYMENT COMMERCE shall not pay the Grantee, if the Grantee has charged or will charge the State of Washington or any other party under any other Grant or agreement, for the same services or expenses. 14.GOVERNING LAW AND VENUE This Grant shall be construed and interpreted in accordance with the laws of the state of Washington, and the venue of any action brought hereunder shall be in the Superior Court for Thurston County. 15.INDEMNIFICATION To the fullest extent permitted by law, the Grantee shall indemnify, defend, and hold harmless the state of Washington, COMMERCE, agencies of the state and all officials, agents and employees of the state, from and against all claims for injuries or death arising out of or resulting from the performance of the Grant Grant, means any financial loss, claim, suit, action, disease, or death, or injury to or the destruction of tangible property including loss of use resulting therefrom. The Grantee Grantee agents, employees, representatives, or any subgrantee or its employees. The Grantee obligation shall not include such claims that may be caused by the sole negligence of the State and its agencies, officials, agents, and employees. If the claims or damages are caused by or result from the concurrent negligence of (a) the State, its agents or employees and (b) the Grantee, its subcontractors, agents, or employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the Grantee or its subgrantees, agents, or employees. The Grantee waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend and hold harmless the state and its agencies, officers, agents or employees. 16.INDEPENDENT CAPACITY OF THE GRANTEE The parties intend that an independent Grantee relationship will be created by this Grant. The Grantee and its employees or agents performing under this Grant are not employees or agents of the state of Washington or COMMERCE. The Grantee will not hold itself out as or claim to be an officer or employee of COMMERCE or of the state of Washington by reason hereof, nor will the Grantee make any claim of right, privilege or benefit which would accrue to such officer or employee under law. Conduct and control of the work will be solely with the Grantee. January 20, 2026 E - 80 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 13 of 21 17.INDUSTRIAL INSURANCE COVERAGE The Grantee shall comply with all applicable provisions of Title 51 RCW, Industrial Insurance. If the Grantee fails to provide industrial insurance coverage or fails to pay premiums or penalties on behalf of its employees as may be required by law, COMMERCE may collect from the Grantee the full amount payable to the Industrial Insurance Accident Fund. COMMERCE may deduct the amount owed by the Grantee to the accident fund from the amount payable to the Grantee by COMMERCE under this Grant, and transmit the deducted amount to the Department of Labor and Industries, (L&I) Grantee. 18.LAWS The Grantee shall comply with all applicable laws, ordinances, codes, regulations and policies of local, state, and federal governments, as now or hereafter amended. 19.LICENSING, ACCREDITATION AND REGISTRATION The Grantee shall comply with all applicable local, state, and federal licensing, accreditation and registration requirements or standards necessary for the performance of this Grant. 20.LIMITATION OF AUTHORITY (delegation to be made prior to action) shall have the express, implied, or apparent authority to alter, amend, modify, or waive any clause or condition of this Grant. Furthermore, any alteration, amendment, modification, or waiver or any clause or condition of this Grant is not effective or binding unless made in writing and signed by the Authorized Representative. 21.NONDISCRIMINATION A.Nondiscrimination Requirement. During the performance of this Agreement, the GRANTEE, including any subcontractor, shall comply with all federal, state, and local nondiscrimination laws, regulations and policies, this shall include but not be limited to the following: GRANTEE, including any subcontractor, shall not discriminate on the bases enumerated at RCW 49.60.530(3). In addition, GRANTEE, including any subcontractor, shall give written notice of this nondiscrimination requirement to any labor organizations with which GRANTEE, or subcontractor, has a collective bargaining or other agreement. The funds provided under this Agreement shall not be used to fund religious worship, exercise, or instruction. No person shall be required to participate in any religious worship, exercise, or instruction in order to have access to the facilities funded by this Agreement. B.Obligation to Cooperate. GRANTEE, including any subcontractor, shall cooperate and comply with any Washington state agency investigation regarding any allegation that GRANTEE, including any subcontractor, has engaged in discrimination prohibited by this Agreement pursuant to RCW 49.60.530(3). C. Default. Notwithstanding any provision to the contrary, COMMERCE may suspend GRANTEE, including any subcontractor, upon notice of a failure to participate and cooperate with any state agency investigation into alleged discrimination prohibited by this Contract, pursuant to RCW 49.60.530(3). Any such suspension will remain in place until COMMERCE receives notification that GRANTEE, including any subcontractor, is cooperating with the investigating state agency. In the event GRANTEE, or subcontractor, is determined to have engaged in discrimination identified at RCW 49.60.530(3), COMMERCE may terminate this Agreement in whole or in part, and GRANTEE, subcontractor, or both, may be referred for debarment as provided in RCW 39.26.200. GRANTEE or subcontractor may be given a reasonable time in which to cure this noncompliance, including implementing conditions consistent with any court-ordered injunctive relief or settlement agreement. January 20, 2026 E - 81 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 14 of 21 D.Remedies for Breach. Notwithstanding any provision to the contrary, in the event of Agreement termination or suspension for engaging in discrimination, GRANTEE, subcontractor, or both, shall be liable for contract damages as authorized by law including, but not limited to, any cost difference between the original Grant and the replacement or cover Grant and all administrative costs directly related to the replacement Grant, e.g., cost of the competitive bidding, mailing, advertising and staff time , which damages are distinct from any penalties imposed under Chapter 49.60, RCW. GRANTEE may also be required to repay grant funds pursuant to Section 25 (Recapture) of the General Terms & Conditions if the Agreement is terminated based on a violation of the nondiscrimination requirement. COMMERCE shall have the right to deduct from any monies due to GRANTEE or subcontractor, or that thereafter become due, an amount for damages GRANTEE or subcontractor will owe COMMERCE for default under this provision. 22.PAY EQUITY The Grantee as equals, consistent with the following: A. performance of the job requires comparable skill, effort, and responsibility, and the jobs are performed under similar working conditions. Job titles alone are not determinative of whether employees are similarly employed; B.Grantee may allow differentials in compensation for its workers if the differentials are based in good faith and on any of the following: i.A seniority system; a merit system; a system that measures earnings by quantity or quality of production; a bona fide job-related factor or factors; or a bona fide regional difference in compensation levels. ii.A bona fide job-related factor or factors may include, but not be limited to, education, training, or experience that is: Consistent with business necessity; not based on or derived from a gender-based differential; and accounts for the entire differential. iii.A bona fide regional difference in compensation level must be: Consistent with business necessity; not based on or derived from a gender-based differential; and account for the entire differential. This Grant may be terminated by the Department, if the Department or the Department of Enterprise Services determines that the Grantee is not in compliance with this provision. 23.POLITICAL ACTIVITIES Political activity of Grantee mployees and officers are limited by the State Campaign Finances and Lobbying provisions of Chapter 42.17A RCW and the Federal Hatch Act, 5 USC 1501 - 1508. No funds may be used for working for or against ballot measures or for or against the candidacy of any person for public office. 24.PUBLICITY The Grantee agrees not to publish or use any advertising or publicity materials in which the state of r implied, without the prior written consent of COMMERCE. 25.RECAPTURE In the event that the Grantee fails to perform this Grant in accordance with state laws, federal laws, and/or the provisions of this Grant, COMMERCE reserves the right to recapture funds in an amount January 20, 2026 E - 82 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 15 of 21 to compensate COMMERCE for the noncompliance in addition to any other remedies available at law or in equity. Repayment by the Grantee of funds under this recapture provision shall occur within the time period specified by COMMERCE. In the alternative, COMMERCE may recapture such funds from payments due under this Grant. 26.RECORDS MAINTENANCE The Grantee shall maintain books, records, documents, data and other evidence relating to this Grant and performance of the services described herein, including but not limited to accounting procedures and practices that sufficiently and properly reflect all direct and indirect costs of any nature expended in the performance of this Grant. The Grantee shall retain such records for a period of six years following the date of final payment. At no additional cost, these records, including materials generated under the Grant, shall be subject at all reasonable times to inspection, review or audit by COMMERCE, personnel duly authorized by COMMERCE, the Office of the State Auditor, and federal and state officials so authorized by law, regulation or agreement. If any litigation, claim or audit is started before the expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 27.REGISTRATION WITH DEPARTMENT OF REVENUE If required by law, the Grantee shall complete registration with the Washington State Department of Revenue. 28.RIGHT OF INSPECTION The Grantee shall provide right of access to its facilities to COMMERCE, or any of its officers, or to any other authorized agent or official of the state of Washington or the federal government, at all reasonable times, in order to monitor and evaluate performance, compliance, and/or quality assurance under this Grant. 29.SAVINGS In the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Grant and prior to normal completion, COMMERCE may suspend or terminate the Grant under the "Termination for Convenience" clause, without the ten calendar day notice requirement. In lieu of termination, the Grant may be amended to reflect the new funding limitations and conditions. 30.SEVERABILITY The provisions of this Grant are intended to be severable. If any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Grant. 31.SITE SECURITY While on COMMERCE premises, Grantee, its agents, employees, or subgrantees shall conform in all respects with physical, fire or other security policies or regulations. 32.SUBGRANTING/SUBCONTRACTING The Grantee may only subgrant/subcontract work contemplated under this Grant if it obtains the prior written approval of COMMERCE. If COMMERCE approves subgranting/subcontracting, the Grantee shall maintain written procedures related to subgranting, as well as copies of all subgrants/subcontract and records related to subgrants/subcontracts. For cause, COMMERCE in writing may: (a) require the Grantee to amend its subgranting/subcontracting procedures as they relate to this Grant; (b) prohibit the Grantee from January 20, 2026 E - 83 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 16 of 21 subgranting/subcontracting with a particular person or entity; or (c) require the Grantee to rescind or amend a subgrant/subcontract. Every subgrant/subcontract shall bind the Subgrantee/Subcontractor to follow all applicable terms of this Grant. The Grantee is responsible to COMMERCE if the Subgrantee/Subcontractor fails to comply with any applicable term or condition of this Grant. The Grantee shall appropriately monitor the activities of the Subgrantee/Subcontractor to assure fiscal conditions of this Grant. In no event shall the existence of a subgrant/subcontract operate to release or reduce the liability of the Grantee to COMMERCE for any breach in the performance of the Grantee Every subgrant/subcontract shall include a term that COMMERCE and the State of Washington are not liable for claims or damages arising from a Subgrantee/Subcontractor subgrant/subcontract. 33.SURVIVAL The terms, conditions, and warranties contained in this Grant that by their sense and context are intended to survive the completion of the performance, cancellation or termination of this Grant shall so survive. 34.TAXES All payments accrued on account of payroll taxes, unemployment contributions, the Grantee or gross receipts, any other taxes, insurance or expenses for the Grantee or its staff shall be the sole responsibility of the Grantee. 35.TERMINATION FOR CAUSE In the event COMMERCE determines the Grantee has failed to comply with the conditions of this Grant in a timely manner, COMMERCE has the right to suspend or terminate this Grant. Before suspending or terminating the Grant, COMMERCE shall notify the Grantee in writing of the need to take corrective action. If corrective action is not taken within 30 calendar days, the Grant may be terminated or suspended. In the event of termination or suspension, the Grantee shall be liable for damages as authorized by law including, but not limited to, any cost difference between the original Grant and the replacement or cover Grant and all administrative costs directly related to the replacement Grant, e.g., cost of the competitive bidding, mailing, advertising and staff time. COMMERCE reserves the right to suspend all or part of the Grant, withhold further payments, or prohibit the Grantee from incurring additional obligations of funds during investigation of the alleged compliance breach and pending corrective action by the Grantee or a decision by COMMERCE to terminate the Grant that the Grantee: (1) was not in default; or (2) failure to perform was outside of his or her control, fault or negligence. The rights and remedies of COMMERCE provided in this Grant are not exclusive and are, in addition to any other rights and remedies, provided by law. 36.TERMINATION FOR CONVENIENCE Except as otherwise provided in this Grant, COMMERCE may, by ten (10) business days written notice, beginning on the second day after the mailing, terminate this Grant, in whole or in part. If this Grant is so terminated, COMMERCE shall be liable only for payment required under the terms of this Grant for services rendered or goods delivered prior to the effective date of termination. 37.TERMINATION PROCEDURES Upon termination of this Grant, COMMERCE, in addition to any other rights provided in this Grant, may require the Grantee to deliver to COMMERCE any property specifically produced or acquired for the performance of such part of this Grant as has been terminated. The provisions of the "Treatment of Assets" clause shall apply in such property transfer. January 20, 2026 E - 84 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 17 of 21 COMMERCE shall pay to the Grantee the agreed upon price, if separately stated, for completed work and services accepted by COMMERCE, and the amount agreed upon by the Grantee and COMMERCE for (i) completed work and services for which no separate price is stated, (ii) partially completed work and services, (iii) other property or services that are accepted by COMMERCE, and (iv) the protection and preservation of property, unless the termination is for default, in which case the Authorized Representative shall determine the extent of the liability of COMMERCE. Failure to agree with such determination shall be a dispute within the meaning of the "Disputes" clause of this Grant. COMMERCE may withhold from any amounts due the Grantee such sum as the Authorized Representative determines to be necessary to protect COMMERCE against potential loss or liability. The rights and remedies of COMMERCE provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Grant. After receipt of a notice of termination, and except as otherwise directed by the Authorized Representative, the Grantee shall: A.Stop work under the Grant on the date, and to the extent specified, in the notice; B.Place no further orders or subgrants/subcontracts for materials, services, or facilities except as may be necessary for completion of such portion of the work under the Grant that is not terminated; C.Assign to COMMERCE, in the manner, at the times, and to the extent directed by the Authorized Representative, all of the rights, title, and interest of the Grantee under the orders and subgrants/subcontracts so terminated, in which case COMMERCE has the right, at its discretion, to settle or pay any or all claims arising out of the termination of such orders and subgrants/subcontracts; D.Settle all outstanding liabilities and all claims arising out of such termination of orders and subgrants/subcontracts, with the approval or ratification of the Authorized Representative to the extent the Authorized Representative may require, which approval or ratification shall be final for all the purposes of this clause; E.Transfer title to COMMERCE and deliver in the manner, at the times, and to the extent directed by the Authorized Representative any property which, if the Grant had been completed, would have been required to be furnished to COMMERCE; F.Complete performance of such part of the work as shall not have been terminated by the Authorized Representative; and G.Take such action as may be necessary, or as the Authorized Representative may direct, for the protection and preservation of the property related to this Grant, which is in the possession of the Grantee and in which COMMERCE has or may acquire an interest. 38.TREATMENT OF ASSETS Title to all property furnished by COMMERCE shall remain in COMMERCE. Title to all property furnished by the Grantee, for the cost of which the Grantee is entitled to be reimbursed as a direct item of cost under this Grant, shall pass to and vest in COMMERCE upon delivery of such property by the Grantee. Title to other property, the cost of which is reimbursable to the Grantee under this Grant, shall pass to and vest in COMMERCE upon (i) issuance for use of such property in the performance of this Grant, or (ii) commencement of use of such property in the performance of this Grant, or (iii) reimbursement of the cost thereof by COMMERCE in whole or in part, whichever first occurs. A.Any property of COMMERCE furnished to the Grantee shall, unless otherwise provided herein or approved by COMMERCE, be used only for the performance of this Grant. B.The Grantee shall be responsible for any loss or damage to property of COMMERCE that results from the negligence of the Grantee or which results from the failure on the part of the January 20, 2026 E - 85 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 18 of 21 Grantee to maintain and administer that property in accordance with sound management practices. C.If any COMMERCE property is lost, destroyed or damaged, the Grantee shall immediately notify COMMERCE and shall take all reasonable steps to protect the property from further damage. D.The Grantee shall surrender to COMMERCE all property of COMMERCE prior to settlement upon completion, termination or cancellation of this Grant. E.All reference to the Grantee under this clause shall also include Grantee or Subgrantees/Subcontractors. 39.WAIVER Waiver of any default or breach shall not be deemed to be a waiver of any subsequent default or breach. Any waiver shall not be construed to be a modification of the terms of this Grant unless stated to be such in writing and signed by Authorized Representative of COMMERCE. January 20, 2026 E - 86 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 19 of 21 Attachment A: Scope of Work Objective Activity / Deliverable(s) Estimated completion date Estimated work hours Project Predevelopment / Design and Engineering Develop conceptual design and prepare prelim. site layout plans for feasible multifamily development March 31, 2027 N/A Project Predevelopment / Site Preparation Facilitate a competitive process to lease or sell site to qualified development partner June 30, 2027 N/A January 20, 2026 E - 87 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 20 of 21 Attachment B: Budget Scope of Work - Predevelopment Budget Site Preparation $988,500 PreDesign and Design $1,000,000 TOTAL $1,988,500.00 January 20, 2026 E - 88 ________________________________________________________________________________________________________ Grant No. 25-94110-003 Page 21 of 21 Attachment C: Loan or Grant Terms The CONTRACTOR agrees to the following loan and/or grant terms and conditions. 1.Contract Amount: The total Contract Amount is One Million Nine Hundred Eighty-Eight Thousand Five Hundred and 00/100 Dollars ($1,988,500.00) and is structured as outlined in the tables below. The CONTRACTOR shall draw down the entire Contract Amount during the contract period, or the DEPARTMENT may reduce the Contract Amount by the amount of the unspent funds. The funds for this contract were directly appropriated to this Project by the legislature in SSB 5195, Section 1021 (4). TABLE A Recoverable Grant Grant #Type Funding Source Amount Fees Start Date End Date 1 Recoverable Grant HTF (Fund 355) $1,988,500 N/A Contract Start Date 06/30/2027 Table A-2. Repayment Terms Recoverable Grant # 1 The Recoverable Grant will have no expectation of repayment if the terms and conditions of the Contract have been met. However, if the CONTRACTOR is materially out of compliance with the terms and conditions of this Contract, the award amount will be due and payable to the DEPARTMENT within thirty (30) days of such event. January 20, 2026 E - 89 Grant No. 25-94110-003 Page 1 of 2 Promissory Note Attachment 2 PROMISSORY NOTE PreDevelopment Technical Assistance $1,988,500.00 Port Angeles, Washington FOR VALUE RECEIVED, the City of Port Angeles, a Washington municipal corporation, ("Borrower"), promises to pay in lawful money of the United States of America, to the order of State of Washington Department of Commerce, or its successor agency, ("Lender") at 1011 Plum Street SE, Post Office Box 42525, Olympia, Washington 98504-2525, the principal sum of One Million Nine Hundred Eight-Eight Thousand Five Hundred and 00/100 Dollars ($1,988,500.00), or so much thereof as may be advanced hereunder. This Promissory Note is subject to the terms and conditions of the Grant No. 25-94110-003 ("Contract") executed between the Borrower and the Lender. Disbursement of the funds evidenced by this Note is to be made subject to the terms and conditions of the Contract. Borrower agrees that a schedule of the dates and amounts of advances and repayments on this Note certified by an officer of Lender shall be conclusive evidence for all purposes of such dates and amounts. All amounts payable hereunder shall be paid without any set-off or deduction of any nature. Except as otherwise provided for in the Contract, in the event the funds are not used as required by the Contract prior to June 30, 2027 as required in the Contract, Lender, or its successor agency, shall be entitled to the unpaid principal balance of this Note and any accrued interest. In case Borrower defaults in payment of this Note, Borrower agrees to pay all of Lender's costs of collection, including but not limited to, reasonable attorney's fees incurred by Lender or the holder of this Note whether or not suit is instituted. If any legal proceedings are instituted relating to this Note, including without limitation any arbitration, bankruptcy, trial, or appellate proceedings, Borrower shall pay Lender's costs, including reasonable attorney's fees in all such proceedings. Borrower hereby waives presentment and demand for payment, notice of dishonor, protest, notice of protest, and any other notice not specifically required by the Contract. Notwithstanding anything to the contrary herein, Borrower, its assigns and their respective members, partners, officers, directors, employees, agents and contractors shall have no personal liability for payment of the indebtedness evidenced hereby or performance of the covenants set forth in this Note, or in the Contract, and the sole recourse of the holder of this Note shall be confined to the exercise of its rights under the Contract, provided that nothing shall diminish the liability for damages or deficiencies resulting from theft, waste, fraud, material misrepresentation and misuse of rents. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER THE LAWS OF THE STATE OF WASHINGTON. January 20, 2026 E - 90 Grant No. 25-94110-003 Page 2 of 2 Promissory Note The individual, by signing below, warrants that they have the authority to sign this Note. CITYs OF PORT ANGELES,a Washington municipal corporation By: Printed Name: Title: Date: January 20, 2026 E - 91 Contract No. 25-94110-003 Page 1 of 6 Deed of Trust Attachment 3 When Recorded Return To: Washington State Department of Commerce Multifamily Housing Unit 1011 Plum Street SE Post Office Box 42525 Olympia, Washington 98504-2525 Attention: MHU Contracts Specialists ______________________________________________________________________________________ DEED OF TRUST Grantor (Borrower): City of Port Angeles Beneficiary (Lender): Washington State Department of Commerce Grantee (Trustee): Olympic Peninsula Title Company Legal Description (abbreviated): LOTS 11 AND 12 BL 300 (Full Legal Description on Exhibit A, page 6) 06-30-00-030055/58925 Contract Number: 25-94110-003 THIS DEED OF TRUST is made this _____ day of December 2025, between the City of Port Angeles, a Washington municipal corporation, whose mailing address is 321 East 5th St., Port Angeles, Washington 98362 as Grantor ("Grantor"); Olympic Peninsula Title Company, whose mailing address is 403 S. Peabody St., Port Angeles, Washington 98362, as Trustee ("Trustee"); and the Washington State Department of Commerce,or its successor agency, as Beneficiary ("Beneficiary"), whose location and mailing addresses are 1011 Plum Street SE, P.O. Box 42525, Olympia, Washington 98504-2525. 1. Grant. Grantor hereby bargains, sells and conveys to Trustee in Trust for the benefit of Beneficiary, with power of sale the real property located in Clallam County, Washington described as: See Exhibit A, Legal Description (the "Property"), that is made part of this Deed. together with all tenements, privileges, reversions, remainders, irrigation and water rights and stock, oil and gas rights, royalties, minerals and mineral rights, hereditaments and appurtenances belonging or in any way pertaining to the Property, and the rents issues and profits thereof. Said Property is not used principally for agricultural or farming purposes. 2. Obligations Secured. This Deed of Trust is given for the purpose of securing the following: January 20, 2026 E - 92 Contract No. 25-94110-003 Page 2 of 6 Deed of Trust (a) Payment in the amount of One Million Nine Hundred Eighty-Eight Thousand Five Hundred and 00/100 Dollars ($1,988,500.00), with interest thereon according to the terms of a Promissory dated December ____, 2025, payable by the Grantor to the Beneficiary, including all renewals, modifications and extensions thereof, (b) Payment of any further sums advanced or loaned by Beneficiary to Grantor, or any of its successors or assigns with interest as agreed, and (c) Performanceof each agreement, term and condition set forth in this Deed of Trust and in Housing Trust Fund Grant Number 25-94110-003 between Grantor and Beneficiary, their successors or assigns, as now or her . 3.Protection of Security. To protect the security of this Deed of Trust, Grantor covenants and agrees: 3.1. To keep the Property in good condition and repair; to permit no waste thereof; to complete any building, structure or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, conditions and restrictions affecting the Property. 3.2. To pay before delinquent all lawful taxes and assessments upon the Property; to keep the Property free and clear of all other charges, liens, or encumbrances impairing the security of this Deed of Trust. 3.3. To keep all buildings now or hereafter on the Property continuously insured against loss by fire or other hazards in an amount not less than the replacement cost of the Property. Except as otherwise provided herein and in the Contract, the amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine, subject to the rights of any senior lien-holder. Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust. In the event of foreclosure, and subject to the rights of the Beneficiary or beneficiaries of any senior deed of trust, all rights of Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale. 3.4. To defend any action or proceeding purporting to affect thesecurity hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 3.5. To pay all costs, fees and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in enforcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 3.6. Should Grantor fail to pay when due any taxes, assessments, insurance premiums, liens, encumbrances or other charges against the Property, Beneficiary may pay the same, and the amount so paid shall be added to and become a part of the debt secured by this Deed of Trust. The payment of such sums by Beneficiary and addition of the amount thereof to the principal balance secured hereby shall not constitute a waiver of the default. 4. General Conditions. The parties hereto agree that: 4.1.In the event of any fire or other casualty to the Property or eminent domain proceedings resulting in condemnation of the Property or any part thereof, Grantor shall have the right to rebuild the Property, and January 20, 2026 E - 93 Contract No. 25-94110-003 Page 3 of 6 Deed of Trust to use all available insurance or condemnation proceeds therefore, provided that (a) such proceeds are sufficient to keep the loan or recoverable grant in balance and rebuild the Property in a manner that provides adequate security to the Beneficiary for repayment of the loan or recoverable grant, or if such proceeds are insufficient to provide adequate security or to keep the loan or recoverable grant in balance, then Grantor has funded any deficiency, (b) Beneficiary shall have the right to approve plans and specifications for any major rebuilding and the right to approve disbursements of insurance or condemnation proceeds for rebuilding under a construction escrow or similar arrangement, and such approval shall not be unreasonably withheld, and (c) no material default then exists under the Contract, the Note, thisDeed of Trust or the Covenant. If the casualty or condemnation affects only part of the Property and total rebuilding is infeasible, then such insurance and/or condemnation proceeds may be used for partial rebuilding and partial repayment of the loan or recoverable grant in a manner that provides adequate security to the Beneficiary for repayment of the remaining balance of the loan or recoverable grant. 4.2. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay. 4.3. The Trustee shall reconvey all or any part of the Property covered by this Deed of Trust to the person entitled thereto on written request of the Grantor and the Beneficiary, or upon satisfaction of the obligations secured and written request for reconveyance made by the Beneficiary or the person entitled thereto. 4.4. Power of Sale. Pursuant to Chapter 61.24 of the Revised Codes of and upon default by Grantor without timely cure and after written notice of thirty (30) days in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein, all sums secured hereby shall immediately become due and payable. In such event and upon written notice of Beneficiary, the Property shall be sold, in accordance with the Deeds of Trust Act of the State of Washington, at public auction to the highest bidder. Any person may bid at the Trustee's sale. Subject to the rights of the beneficiary or beneficiaries of any senior deed of trust, the proceeds of the sale shall be applied as follows: (1) to the expense of the sale, including a reasonable Trustee's fee and attorney's fee; (2) to the obligation secured by this Deed of Trust; (3) the surplus, if any, shall be distributed to the person or persons entitled thereto. 4.5. A Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the Property which Grantor had or had the power to convey at the time of the execution of this Deed of Trust, and such as Grantor may have acquired thereafter. Trustee's deed shall recite the facts showing that the sale was conducted in compliance with all the requirements of law and of this Deed of Trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of a bona fide purchaser for value. 4.6. The power of sale conferred by this Deed of Trust and by the Deeds of Trust Act of the State of Washington is not an exclusive remedy; Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage. 4.7. Beneficiary may at any time appoint or discharge the Trustee. January 20, 2026 E - 94 Contract No. 25-94110-003 Page 4 of 6 Deed of Trust 4.8. This Deed of Trust applies to, inures to the benefit of, and binds all parties hereto and their successors and assigns. The terms "Grantor," "Trustee," and "Beneficiary" include their successors and assigns. 5. Acceleration. Except as otherwise provided for in the Contract, if without Beneficiary's prior written consent, all or any part of the Property or any interest in it is sold, conveyed, transferred, encumbered, or the Grantor fails to comply with the terms of the Contract , Beneficiary may, at its option, require immediate payment in full of all sumssecured by this Deed of Trust. However, this option shall not be exercised by Beneficiary if exercise is prohibited by federal law as of the date of this Deed of Trust. If Beneficiary exercises this option, Beneficiary shall give Grantor notice of acceleration. The notice shall provide a period of not less than thirty (30) days from the date the notice is delivered or mailed within which Grantor must pay all sums secured by this Deed of Trust. If Grantor fails to pay these sums prior to the expiration of this period, Beneficiary may invoke any remedies permitted by this Deed of Trust without further notice or demand on Grantor. Notwithstanding the foregoing, Beneficiary shall give Grantor written notice of any Event of Default and a 60-day opportunity to cure such Event of Default prior to issuing any notice of acceleration. [SIGNATURE AND NOTARY BLOCKS FOLLOW] January 20, 2026 E - 95 Contract No. 25-94110-003 Page 5 of 6 Deed of Trust WITNESS the hand and seal of the Grantor on the day and year first written above. CITY OF PORT ANGELES, a Washington municipal corporation By: Printed Name: Title: STATE OF WASHINGTON ) ) ss. COUNTY OF CLALLAM ) On this _____ day of December 2025, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared _________________, to me personally known (or proved to me on the basis of satisfactory evidence) to be the ______________of Mercy Housing Northwest, a Washington nonprofitcorporation, and acknowledged said instrument to be the free and voluntary act and deed of such corporation, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute the said instrument. (Seal or Stamp) (Signature of Notary) (Legibly Print or Stamp Name of Notary) NOTARY PUBLIC in and for the State of Washington My Commission Expires: January 20, 2026 E - 96 Contract No. 25-94110-003 Page 6 of 6 Deed of Trust EXHIBIT A LEGAL DESCRIPTION LOTS 11 AND 12,BLOCK 300,OF THE TOWNSITE OF PORT ANGELES, RECORDS OF CLALLAM COUNTY, WASHINGTON. SITUATE IN CLALLAM COUNTY, STATE OF WASHINGTON. Tax Parcel No(s).:06-30-00-030055/58925 January 20, 2026 E - 97 Date: January 20, 2026 To: City Council From: Abbi Fountain,Human Resources Director Subject: Berg Benefits Professional Services Agreement and RedQuote HRA Adoption Agreement Relationship to Strategic Plan: The 2025-2026 Strategic Plan was approved by the City Council on October 1, 2024. This professional services agreement directly aligns with Strategic Focus Area #1, Community Resilience, and addresses the goal to improve community health and wellness. Background / Analysis: For employees covered by the Association of Washington Cities health care, the City provides a medical bridge (also known as a Health Reimbursement Arrangement or HRA) in the amount of $2400/individual and $4800/family coverage. Berg Benefits Inc, dba RedQuote, administers reimbursements for the HRA program. Berg Benefits Inc, dba RedQuote, consultants are trained and knowledgeable in the Health Insurance Portability and Accountability Act (HIPPA) and they provide customer service support regarding the appropriate processing of health care providers for medical claims that current City staff do not have the training or qualifications to perform. The City has been contracting with this company for several years due to their knowledge and expertise in the healthcare field. Rates per person have remained consistent and there is no increase for 2025. The Professional Services Agreement is for one year, January 1, 2026, to December 31, 2026. The scope of work is the same as the previous agreement. Summary:third-party administrator to oversee and administer the medical bridge portion of the health care plan. Strategic Plan:This professional services agreement directly aligns with Strategic Focus Area #1, Community Resilience, and addresses the goal to improve community health and wellness. Funding: Professional services fee is $59,400. This fee is allocated amongst all departments and is included in the overall personnel benefit line item in the 2026 budget. Recommendation: 1) Authorize the City Manager to sign the Berg Benefits Professional Services Agreement in an amount not to exceed $59,400, and 2) authorize the City Manager to sign the RedQuote Adoption Agreement. January 20, 2026 E - 98 Funding Overview: The annual professional services fee is $59,400. This fee is allocated amongst all departments and is included in the overall personnel benefit line item in the 2026 budget. Attachment: Berg Benefits Professional Services Agreement RedQuote HRA Adoption Agreement January 20, 2026 E - 99 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 1 of 8 CITY OF PORT ANGELES 2026 PROFESSIONAL SERVICES AGREEMENT 1. Parties and Date. THIS Agreement is made effective as of the 1st day of January 2026, by and between CITY OF PORT ANGELES, WASHINGTON ("City") and BERG BENEFITS, INC. dba REDQUOTE ("Consultant"). 2. General Purpose and Intent. Consultant will provide employee benefits design consultation to City. Consultant will provide documentation and illustrations to City's employees. Consultant will provide benefits related customer service support regarding health, dental, vision, life, and disability employee benefits plans. These services will be provided from January 1, 2026, to December 31, 2026. 3. Services by Consultant. A. Consultant shall perform the services described in the Scope of Work attached hereto as Exhibit "A" (the "Scope of Work"). The services performed by the Consultant shall not exceed the Scope of Work without prior written authorization from the City. B. The City may from time to time require changes or modifications in the Scope of Work. Such changes, including any decrease or increase in the amount of compensation, shall be agreed to by the parties and incorporated in written amendments to the Agreement. 4. Schedule of Work. A. Consultant shall perform the services described in the Scope of Work in accordance with the schedule attached hereto as Exhibit "B." If delays beyond Consultant's reasonable control occur, the parties will negotiate in good faith to determine whether an extension is appropriate. B. Consultant is authorized to proceed with the services described in the Scope of Work upon receipt of a written Notice to Proceed. 5. Compensation. LUMP SUM. Compensation for the services described in the Scope of Work shall be a Lump Sum of $59,400.00 (198 employees @ $25/PEPM x 12 months) TIME AND MATERIALS NOT TO EXCEED. Compensation for the services described in the Scope of Work shall not exceed $ _____________ without written authorization and will be based on the list of billing rates and reimbursable expenses attached hereto as Exhibit "C." TIME AND MATERIALS. Compensation for the services described in the Scope of Work shall be on a time and material basis according to the list of billing rates and reimbursable expenses attached hereto as Exhibit "C." OTHER. 6. Coordination of Contract Documents. This Agreement consists of this professional services agreement form and Exhibits "A" and "B". If there is any inconsistency between this professional services agreement form and any of the Exhibits, the professional services agreement form shall take precedence. January 20, 2026 E - 100 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 2 of 8 7. Payment. A. Consultant shall provide monthly invoices in the format acceptable to the City for work performed to the date of invoice. Consultant shall maintain time and expense records for reimbursable expenses and any work that is billed hourly under this Agreement and provide them to the City upon request. B. All invoices shall be paid by City warrant within thirty (30) days of receipt of a proper invoice. C. Consultant shall keep cost records and accounts pertaining to this Agreement available for inspection by City representatives for three (3) years after final payment unless a longer period is required by a third-party agreement. Copies shall be made available on request. D. If the services rendered do not meet the requirements of the Agreement, Consultant will correct or modify the work to comply with the Agreement. City may withhold payment for such work until the work meets the requirements of the Agreement. 8. Discrimination and Compliance with Laws. A. Consultant agrees not to discriminate against any employee or applicant for employment or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, disability, or other circumstance prohibited by federal, state, or local law or ordinance, except for a bona fide occupational qualification. B. Consultant shall comply with all federal, state, and local laws and ordinances applicable to the work to be done under this Agreement. C. Violation of this Paragraph 8 shall be a material breach of this Agreement and grounds for cancellation, termination, or suspension of the Agreement by City, in whole or in part, and may result in ineligibility for further work for City. 9. Term and Termination of Agreement A. This Agreement may be terminated by the City at any time upon the default of the Consultant or upon public convenience, in which event all finished or unfinished documents, reports, or other material or work of Consultant pursuant to this Agreement shall be submitted to City, and Consultant shall be entitled to just and equitable compensation for any satisfactory work completed prior to the date of termination, not to exceed the total compensation set forth herein. Consultant shall not be entitled to any reallocation of cost, profit or overhead. Consultant shall not in any event be entitled to anticipated profit on work not performed because of such termination. Consultant shall use its best efforts to minimize the compensation payable under this Agreement in the event of such termination. If the Agreement is terminated for default, the Consultant shall not be entitled to receive any further payments under the Agreement until all work called for has been fully performed. Any extra cost or damage to the City resulting from such default(s) shall be deducted from any money due or coming due to the Consultant. The Consultant shall bear any extra expenses incurred by the City in completing the work, including all increased costs for completing the work, and all damage sustained, or which may be sustained by the City by reason of such default. January 20, 2026 E - 101 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 3 of 8 B. The City may suspend this Agreement, at its sole discretion, upon one week's advance notice to Consultant. Such notice shall indicate the anticipated period of suspension. Any reimbursement for expenses incurred due to the suspension shall be limited to the Consultant's reasonable expenses, and shall be subject to verification. The Consultant shall resume performance of services under this Agreement without delay when the suspension period ends. 10. Standard of Care. Consultant represents and warrants that it has the requisite training, skill and experience necessary to provide the services under this agreement and is appropriately accredited and licensed by all applicable agencies and governmental entities. Services provided by Consultant under this agreement will be performed in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing in similar circumstances. 11. Ownership of Work Product. All data materials, reports, memoranda, and other documents developed under this Agreement whether finished or not shall become the property of City, shall be forwarded to City at its request and may be used by City as it sees fit. Upon termination of this agreement pursuant to paragraph 9 above, all finished or unfinished documents, reports, or other material or work of Consultant pursuant to this Agreement shall be submitted to City. City agrees that if it uses products prepared by Consultant for purposes other than those intended in this Agreement, it does so at its sole risk and it agrees to indemnify and hold Consultant harmless therefore. 12. Indemnification/Hold Harmless. Consultant shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the Consultant in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City, its officers, officials, employees, and volunteers, the Consultant's liability, including the duty and cost to defend, hereunder shall be only to the extent of the Consultant's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Consultant's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. January 20, 2026 E - 102 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 4 of 8 13. Insurance.The Consultant shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. Consultant's maintenance of insurance as required by this Agreement shall not be construed to limit the liability of the Consultant to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: 1. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors and personal injury and advertising injury. The City shall be named as an insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 4. Professional Liability insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit. C. Other Insurance Provisions The Consultant's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respect the City. Any Insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. January 20, 2026 E - 103 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 5 of 8 E. Verification of Coverage Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. F. Notice of Cancellation The Consultant shall provide the City with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance Failure on the part of the Consultant to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business to the Consultant to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Consultant from the City. 14. Assigning or Subcontracting. Consultant shall not assign, transfer, subcontract or encumber any rights, duties, or interests accruing from this Agreement without the express prior written consent of the City, which consent may be withheld at the City's sole discretion. 15. Independent Contractor. Consultant is and shall be at all times during the term of this Agreement an independent contractor. 16. Notice A. Any notice or communication required by this Agreement must be in writing, and may be given either personally, electronically with evidence of receipt, by express delivery service, or by registered or certified mail, return receipt requested. If given personally, by express delivery service, or by registered or certified mail, such notice or communication shall be deemed to have been given and received upon actual receipt. If delivery is made electronically, either by e-mail or facsimile transmission, a notice shall be deemed to have been given when delivered to the person to whom it is addressed, and there is electronic confirmation that it was received. Such notices or communications shall be given to the Parties at their addresses set forth below: Nathen West City Manager, Port Angeles 321 E 5th St Port Angeles, WA 98362 Phone: 360-417-0411 Email: citymanager@cityofpa.us Joseph Berg President, Berg Benefits, Inc. 1804 W Union Ave #201 Tacoma, WA 98405 Phone: 253-753-9930 Email: jberg@bergbenefits.com January 20, 2026 E - 104 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 6 of 8 B. Either party may change its contact information by sending its new contact information to the other party in the same manner as is provided for sending the other party notice under the provisions of paragraph 16.A. 17. Disputes. Any action for claims arising out of or relating to this Agreement shall be governed by the laws of the State of Washington. Venue shall be in Pierce County Superior Court. 18. Fees. In any suit or action instituted to enforce any right granted in this Agreement, the substantially prevailing party shall be entitled to recover its costs, disbursements, and reasonable attorney's fees from the other party. 19. Extent of Agreement/Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be amended, modified or added to only by written instrument properly signed by both parties. CITY OF PORT ANGELES, CONSULTANT _________________________ _________________________ Nathan West Joseph Berg City Manager President, Berg Benefits, Inc. Date:_____________________ Date:______________________ January 20, 2026 E - 105 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 7 of 8 Exhibit A Scope of Work Consultant will: 1) Provide advice to City regarding creation and implementation of employee health insurance plan, including medical insurance, HSA, and HRA advice. 2) Will research and / or answer questions relating to the HRA, HSA processing and regulations. The information includes but is not limited to appropriate carrier documentation, tax, COBRA, and retiree implications and any other service support relating to employee issues and questions. 3) Provide HR and/or Payroll Department with information pertaining to HRA reimbursements throughout the year. 4) Provide quoting service and comparison services to the City at health plan renewals. 5) Assist the City in creating offers for various employee units. 6) Other employee benefits consulting services as needed. January 20, 2026 E - 106 City of Port Angeles ________________ _______________ Professional Services Agreement CITY CONSULTANT Page 8 of 8 Exhibit B Schedule of Work Consultant will: 1) Provide advice and consulting services to the City as needed. a. Timing for completion of requests from the City will be as soon as reasonably possible. As projects and requests vary in scope, turn-around times will be discussed with each request. 2) Provide advice and customer service to city employees. a. Timing for these requests will be as soon as reasonably possible. Requests will often be dependent on insurance companies, pharmacies, and/or provider's office. January 20, 2026 E - 107 Services provided by Berg Benefits, dba RedQuote may be subject to state and federal privacy laws and regulations, including but not limited to the Gramm-Leach-Bliley Accountability as amended from time to time, any and all applicable state privacy and security statutes and any relevant regulations enacted or promulgated in conjunction with applicable state and federal privacy and security laws. For purposes of the following, capitalized terms not otherwise defined shall have those meanings ascribed by HIPAA/ HITECH. In the capacity as a Consultant to City, Berg Benefits, Inc. dba RedQuote agrees: 1.not to use or to disclose Protected Health Information other than as permitted or required by this Notice or as required by law; 2.to use appropriate safeguards to prevent use or disclosure of PHI other than as provided for by this Notice; 3.to only request or disclose the minimum amount of PHI necessary to accomplish the purpose of the use or disclosure; 4.to implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of the electronic PHI that Berg Benefits, Inc. dba RedQuote creates, receives, maintains or transmits on behalf of City as required under HIPAA/HITECH; 5.toreport to City, within ten (10) business days of discovery, any unauthorized disclosure of the PHI 6.to mitigate, to the extent practicable, any harmful effect that is known to Consultant of a use, disclosure or Breach of PHI; 7.to make available to City Consultant internal practices, policies and procedures and PHI, relating to the use and disclosure of PHI received from, or created or received by Consultant on behalf of City The Materials shall be provided by Consultant in the time and manner specified by City in writing with reasonable advance notice to Consultant or designated by the Secretary; 8.to document disclosures of PHI and information related to such disclosures as would be required for City to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with HIPAA/HITECH; 9.to provide to City or an Individual designated by City, in the time and manner as City may specify in writing with reasonable advance notice, information Consultant has collected in order to permit City to respond to a request by an Individual for an accounting of disclosures of PHI in accordance with HIPAA/HITECH; 10. to ensure that any Agent, including a Subcontractor, to whom Consultant provides PHI either received from, or created or received by Consultant on behalf of City, agrees in writing to the same restrictions and conditions that apply to Consultant under this Notice and HIPAA/HITECH with respect to such information; 11. to provide appropriate training regarding the requirement of this subsection to any employee or Subcontractor accessing, using or disclosing PHI and shall implement a system of sanction for any employee, Agent or Subcontractor who violates this; 12. at termination, Consultant shall return or destroy all PHI received from City, or created or received by Consultant on behalf of City or to extend the protections of this Notice to the information and to limit further uses and disclosures of such PHI to those purposes that make the return or destruction infeasible, for so long as Consultant maintains such PHI; and 13. to comply with applicable HIPAA/HITECH laws and regulations. Miscellaneous A. Relationship of Parties. None of the provisions of this Notice are intended to create or shall be deemed to create any relationship between the Parties other than that of independent parties contracting with each other solely for the purposes of effecting the provisions of this Notice and any Arrangement between the Parties. B.Ownership of PHI. The PHI and any related information created for or received from City is, and will remain, the property of City. Consultant agrees that it acquires no ownership rights to, or title in, the PHI or any related information. C. No Third Party Beneficiaries. Nothing express or implied in this Notice is intended to confer, nor shall anything herein confer, upon any person or entity other than City, Consultant and their respective successors and assigns, any rights, remedies, obligations or liabilities whatsoever. D.Waiver. No change, waiver or discharge of any liability or obligation hereunder on any one or more occasions shall be deemed a waiver of performance of any continuing or other obligation, or shall prohibit enforcement of any obligation, on any occasion. E.Severability. In the event that any provision of this Notice is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of the provisions of this Notice shall remain in full force and effect. F.Interpretation. This Notice shall be interpreted as broadly as necessary to implement and comply with the Privacy, Security, and Omnibus Rules. The Parties agree that any ambiguity in this Notice shall be resolved in favor of a meaning that complies with and is consistent with the Privacy, Security, and Omnibus Rules. ______________ City _____________ Berg/RQ January 20, 2026 E - 108 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 1 of 13 ©2021 RedQuote The undersigned Employer adopts the RedQuote Health Reimbursement Arrangement and elects the following provisions: EMPLOYER AND PLAN INFORMATION 1. Name: City of Port Angeles Address: 321 East 5th Street Street Port Angeles Washington 98362 ______ City State Zip Telephone: 360-417-4510 2. : 91-6001266 3. ERISA PLAN NAME: City of Port Angeles_____________________________________________ 4. EFFECTIVE DATE a. The Health Reimbursement Arrangement is a new plan effective as of _________. b. The Health Reimbursement Arrangement is an amendment and restatement of an existing plan. The effective date of the amendment and restatement is - 01/01/2026________. 5. ERISA PLAN NUMBER a. 501 b. Other: 6. PLAN ADMINISTRATOR a. Employer (Use Employer name, address and telephone number). b. Use name, address and telephone number below: Name: Address: ______________________________________________________________________ __________________________ City State Zip Telephone: January 20, 2026 E - 109 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 2 of 13 ©2021 RedQuote 7. AFFILIATED EMPLOYERS adopt this Health Reimbursement Arrangement as Participating Employers: a. N/A b. Name of Affiliated Employer(s): ____________________________ 8. PLAN YEAR The Plan Year shall end on: a. December 31 b. The last day of the month of __________________. TYPE OF HEALTH REIMBURSEMENT ARRANGEMENT 9. HRA CLASSIFICATION The Health Reimbursement Arrangement shall consist of separate accounts which meet the following classifications: a. Integrated HRA. HRA integrated with other major medical group health plan coverage under the terms of IRS Notice 2013-54 with the following specifications: The HRA will be integrated with (select (1) and/or (2)): 1. and/or 2. The group health plan coverage (select (3) and/or (4)): 3. Provides minimum value under IRC Section 36B, and/or 4. Does not provide minimum value. Eligible Employees for the Integrated HRA are set forth in Section 10. In addition, special rules concerning Dependents also apply to Integrated HRAs. To be a valid Integrated HRA under this subsection 9.a., select one of the following three Dependent integration options: 5. Spouses Only. Only spouses have coverage under this HRA (only subsection 13.a. is checked). Then, the spouse (if applicable) must either be enrolled for group health plan coverage under the employer group health group health plan; or 6. Dependent Children Only. Only dependent children have coverage under this HRA (only subsection 13.b. is checked). Then, the dependent children (to the extent applicable) must be enrolled for group health plan coverage under the employer group health plan or spouse or ; or 7. Spouses and Dependent Children. Both spouses and dependent children have coverage under this HRA (both subsections 13.a. and 13.b. are checked). Then, the spouse and dependent children (to the extent applicable) must January 20, 2026 E - 110 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 3 of 13 ©2021 RedQuote either be enrolled for group health plan coverage under the employer group health plan. b. Pre-2014 HRA. An HRA that was in existence prior to January 1, 2014 and that consists of the following prior Employer contributions (select (1) and (2) as applicable): 1. Employer contributions credited before January 1, 2013, and 2. Employer contributions credited during 2013 calendar year under the HRA terms in effect on January 1, 2013. c. Retiree-Only HRA. An HRA that covers only former employees of the Employer consisting of (select (1), (2) and (3) as applicable): 1. Former employees who are retirees, 2. Former employees who are disabled, and 3. Former employees who have terminated employment. d. Excepted Benefit Premium Reimbursement HRA. An HRA that reimburses only individual insurance premiums that are considered HIPAA excepted benefits (1) stand-alone individual dental insurance, (2) stand-alone individual vision insurance, (3) non-coordinated, individual insurance coverage for a specified disease or illness, and (4) non-coordinated, individual insurance coverage that is hospital indemnity or fixed indemnity. e. Excepted Benefit HRA. An HRA that reimburses certain medical expenses that satisfy the following requirements: (1) Other major medical group health plan coverage is available from the Employer to the employees covered by the HRA. (2) Contributions for a year must be used for expenses incurred in the same year or otherwise forfeited. However, for this purpose, the carryover rule of IRS Notice 2013-71 allowing a carryover of unused amounts of up to $500 to the following plan year (select only one) Shall apply, or Shall not apply. (3) Contributions for a year are equal to the following (but cannot exceed $500) f. Excepted Benefit Dental and Vision HRA. An HRA that is limited to reimbursement of dental-only and vision-only expenses as defined in Treas. Reg. Section 54.9831-1(c)(3)(iii) and that otherwise satisfy Code Section 213(d). January 20, 2026 E - 111 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 4 of 13 ©2021 RedQuote g. HRA Integrated with Dental and/or Vision Only Coverage. An HRA that is integrated with dental-only coverage and/or vision-only coverage sponsored by the Employer and the HRA is limited to reimbursement of the following expenses (select only one): 1. Dental-only expenses (as defined in Treas. Reg. Section 54.9831-1(c)(3)(iii)) that -only coverage and that otherwise satisfy Code Section 213(d), 2. Vision-only expenses (as defined in Treas. Reg. Section 54.9831-1(c)(3)(iii)) that -only coverage and that otherwise satisfy Code Section 213(d), or 3. Dental-only and vision-only expenses (as defined in Treas. Reg. Section 54.9831- 1(c)(3)(iii)) -only or vision-only coverage and that otherwise satisfy Code Section 213(d). h. After-Tax Reimbursement Account. A reimbursement account that reimburses expenses (but not major medical individual insurance premiums), but only if the reimbursements are treated as taxable compensation to the Eligible Employee pursuant to the rules and procedures of the Employer. Note: The Employer is solely responsible for determining the amount of taxable compensation and the rules and procedures of how and when to treat reimbursements as taxable compensation. i. TRICARE Health Reimbursement Account. An HRA that is integrated with TRICARE coverage under the terms of IRS Notice 2015-17 with the following specifications: (1) The employer offers group major medical coverage to its TRICARE-eligible employees (other than the HRA) and such coverage provides minimum value under IRC Section 36B; (2) Employees participating in the HRA are also enrolled in TRICARE; (3) The HRA is only available to employees who are also enrolled in TRICARE; and (4) The Employer employs less than 20 employees. Note: By signing this Agreement, the Employer certifies that it employs less than 20 employees and is exempt from the prohibition on financial and other incentives as set forth in 32 CFR Section 199.8. The Employer is required to inform RedQuote if this changes at any point in the future. The Employer is solely responsible for complying with any TRICARE rules and regulations. January 20, 2026 E - 112 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 5 of 13 ©2021 RedQuote j. A QSEHRA is a health reimbursement arrangement that satisfies the following specifications: (1) rules set forth in Code Section 4980H(c)(2) and guidance related thereto (generally this means that the Employer must employ less than 50 full-time or full-time equivalent employees in the prior calendar year); (2) The Employer does not offer a group health plan (as defined in Chapter 100 of the Code) to any of its employees; (3) Only the Employer makes contributions to the QSEHRA as limited by Section 14.f.; (4) Reimbursements are limited to the types of expenses set forth in Section 16.k.; (5) Reimbursements are only made to Eligible Employees who provide proof of major medical coverage; and (6) The QSEHRA is offered to all Eligible Employees as set forth in Section 10.f. Note: The Employer is solely responsible for complying with the income exclusion rules under Code Section 106(g) and the notice requirements of Code Section 9831(d)(4). However, the Summary Plan Description includes a discussion of the notice provisions and related subsidy rules for a QSEHRA. ELIGIBILITY REQUIREMENTS 10. ELIGIBLE EMPLOYEES a. If this is an Integrated HRA under Section 9.a., only those employees (if any) enrolled in the other group health plan coverage can be eligible for the HRA. In this regard, the following employees are eligible for such an HRA: 1. 2. employer); 3. Employees enrolled in the group health plan coverage of another employer ; or 4. Employees are not eligible to participate. Only eligible spouses and dependents may participate as set forth in Item 13. . January 20, 2026 E - 113 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 6 of 13 ©2021 RedQuote b. All employees are eligible except for the following (select all that apply): 1. Union employees 2. Non-resident aliens 3. Leased employees 4. Part-time employees scheduled to work less than _________ hours per week. 5. 6. Other: c. All employees are eligible no exclusions. d. This is a retiree-only HRA under Section 9.c. of this Adoption Agreement and the following classifications are eligible: ____________________________________ ______________________________________________________________________ e. This is a TRICARE HRA under Section 9.i. of this Adoption Agreement and HRA is only available to those employees who are enrolled in TRICARE and satisfy the requirements of Section 9.i. f. This is a QSEHRA under Section 9.k. of this Adoption Agreement and all employees of the Employer are considered Eligible Employees except for the following exclusions (check all that apply): 1. Employees who have not completed 90 days of service with the Employer. 2. Employees who have not attained age 25. 3. Part-time and seasonal employees (as defined in Code Section 105(h) and guidance related thereto). 4. Employees covered by a collective bargaining agreement. 5. Employees who are non-resident aliens who receive no US-source income. 11. WAITING PERIOD Any Eligible Employee will be eligible to participate in the Health Reimbursement Arrangement upon satisfaction of the following waiting period: a. (NOTE: If this is an Integrated HRA under Section 9.a. of this Adoption Agreement, this subsection a is the only choice that can apply.) b. Date of hire or attainment of Eligible Employee status (no waiting period) (NOTE: If this is a QSEHRA under Section 9.k. of this Adoption Agreement, this subsection b is the only choice that can apply. To exclude new hires for the first 90 days, select Section 10.f.1. above.) c. ________months after date of hire d. ________days after date of hire e. Other: January 20, 2026 E - 114 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 7 of 13 ©2021 RedQuote 12. EFFECTIVE DATE OF PARTICIPATION An Eligible Employee who has satisfied the eligibility and waiting period requirements of Items 10 and 11 will become a Participant on: a. (NOTE: If this is an Integrated HRA under Section 9.a. of this Adoption Agreement, this subsection a is the only choice that can apply.) b. the day on which such requirements are satisfied (NOTE: If this is a QSEHRA under Section 9.k. of this Adoption Agreement, this subsection b is the only choice that can apply). c. the first day of the month coinciding with or next following the date on which such requirements are satisfied. d. the first day of the calendar quarter coinciding with or next following the date on which such requirements are satisfied. e. the first day of the pay period coinciding with or next following the date on which such requirements are satisfied. f. Other: 13. DEPENDENTS NOTE: If this is an Integrated HRA under Section 9.a., see the special rules in Section 9.a.5. thru 9.a.8. The HRA will cover the following dependents (select all that apply): a. Spouses for Federal income tax purposes b. Biological children, adopted children, stepchildren and eligible foster children who have not attained the age of 26. (NOTE: If this is an Integrated HRA under Section 9.a. or a Pre-2014 HRA under Section 9.b., this subsection b. must apply.) c. Any other individuals who are Federal tax dependents of the Employee. d. Any of the following individuals (but who are also Federal tax dependents of the Employee): _____________________________________________________________ BENEFITS 14. HRA CONTRIBUTIONS the frequency selected: a. $_________ per month b. $_________ per quarter c. $_____ ____per plan year d. This is a Pre-2014 HRA under Section 9.b. of this Adoption Agreement, and no additional contributions can be made. e. This is an Excepted Benefit HRA under Section 9.e. of this Adoption Agreement, and contributions are limited as set forth in Section 9.e. January 20, 2026 E - 115 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 8 of 13 ©2021 RedQuote f. This is a QSEHRA under Section 9.k. of this Adoption Agreement and contributions are as follows (NOTE: Annual contributions cannot be greater than the applicable limit set forth in Code Section 9831(d)(2)(B)(iii), as adjusted. Contributions begin for the calendar month beginning after the effective date of participation.): 1. $ ____________ per month for each Eligible Employee, or 2. $ ____________ per month for each Eligible Employee and his/her Covered Dependents. The amount above will be different based on the variation in the price of a major medical policy based on age or number of family members as follows: ___________ g. Other: Medical Enrollment: Employee Only (EE) $2,400.00, Employee Spouse (ES) $4,800.00, Employee Child (EC) $4,800.00, Employee Family (EF) $4,800.00 15. ANNUAL DEDUCTIBLE THRESHOLD For each Plan Year, HRA Account contributions cannot be accessed and are not available to HRA Participants prior to the date during the Plan Year that the HRA Participant satisfies the applicable Annual Deductible Threshold based on the following criteria: a. No Annual Deductible Threshold applies. Note: If this box is checked, skip to Section 16. NOTE: If this is an Excepted Benefit Premium Reimbursement HRA under Section 9.d., an Excepted Benefit HRA under Section 9.e., an Excepted Benefit Dental or Vision HRA under 9.f., an After-Tax Reimbursement Account under Section 9.h., or a TRICARE HRA under Section 9.i. this subsection (a) must be selected. b. Annual Deductible Threshold does apply. The Annual Deductible Threshold is calculated based on the following expenses: 1. Eligible claims filed under the coverage or policy associated with the HRA; or 2. All Qualifying Medical Expenses. c. The Annual Deductible Threshold is as follows: 1. A $___________Annual Deductible Threshold applies for all Participants, regardless of the level of coverage selected 2. An Annual Deductible Threshold applies based on the major medical level of coverage selected by the Participant as follows: $ 1,700.00 Single_______________ $ 3,400.00 Single Plus Spouse__ _ $ 3,400.00 Single Plus Dependent _ $ 3,400.00 Family_______________ 3. A multi-tiered Annual Deductible Threshold applies as follows: January 20, 2026 E - 116 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 9 of 13 ©2021 RedQuote (i) On the first $________ of the Annual Deductible Threshold, the HRA reimburses _________ % of eligible HRA claims; (ii) From $___________ to __________ of the Annual Deductible Threshold, the HRA reimburses _________ % of eligible HRA claims; and (iii) Amounts greater than $________ of the Annual Deductible Threshold, the HRA reimburses __________ % of eligible HRA claims. 4. A multi-tiered Annual Deductible Threshold applies as follows: (i) For amounts less than $ _______ of the Annual Deductible Threshold, the HRA reimburses 0% of eligible HRA claims; (ii) For amounts greater than $ ___________ but less than $ ______________ of the Annual Deductible Threshold, the HRA reimburses ________ % of eligible HRA claims; and (iii) For amounts greater than $ ___________ of the Annual Deductible Threshold, the HRA reimburses ________ % of eligible HRA claims. 16. QUALIFYING MEDICAL EXPENSES The following expenses will be considered as Qualifying Medical Expenses under the HRA: a. Integrated HRA. This is an Integrated HRA under Section 9.a.: 1. The non-HRA group health plan coverage is providing minimum value (box 9.a.3 is checked). In that case, Qualifying Medical Expenses will be limited to any medical expenses under IRC 213(d) (excluding individual insurance premiums and employer group health plan premiums paid on a pre-tax basis). AND/OR 2. The non-HRA group health plan coverage is not providing minimum value (box 9.a.4 is checked). In that case, Qualifying Medical Expenses will be limited to co- payments, co-insurance, and deductibles under the non-HRA group health plan coverage, plus other IRC 213(d) expenses (excluding individual insurance premiums and employer group health plan premiums paid on a pre-tax basis) that are not considered essential health benefits. AND/OR 3. premiums, as long as those premiums are paid by the spouse on an after-tax basis and are properly substantiated as determined by the Claims Administrator. b. Integrated HRA. This is an Integrated HRA under Section 9.a. that is either providing minimum value or not providing minimum value. Qualifying Medical Expenses will be limited to the following (indicate all that apply): January 20, 2026 E - 117 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 10 of 13 ©2021 RedQuote Medical deductible paid under the applicable employer group health plan; Medical co-insurance paid under the applicable employer group health plan; Medical / Pharmacy co-pays paid under the applicable employer group health plan; and/or Pharmacy deductibles, co-insurance and/or co-pays paid under the applicable employer group health plan. c. Pre-2014 HRA. This is a Pre-2014 HRA under Section 9.b. Qualifying Medical Expenses will be limited to any medical expenses under IRC 213(d) based on Internal Revenue Service guidance and rules in effect on December 31, 2013, as determined by the Claims Administrator. d. Retiree-Only HRA. This is a Retiree-Only HRA under Section 9.c. Qualifying Medical Expenses will be limited to any medical expenses under IRC 213(d) (including any individual insurance premiums but excluding employer group health plan premiums). e. Excepted Benefit Premium Reimbursement HRA. This is an Excepted Benefit Premium Reimbursement HRA under Section 9.d. Qualifying Medical Expenses are limited to individual insurance premiums described in Section 9.d. f. Excepted Benefit HRA. This is an Excepted Benefit HRA under Section 9.e. Qualifying Medical Expenses will be limited to any medical expenses under IRC 213(d) (excluding any individual insurance premiums and employer group health plan premiums). g. Excepted Benefit Dental and Vision HRA. This is an Excepted Benefit Dental and Vision HRA under Section 9.f. Qualifying Medical Expenses are limited to reimbursement of IRC 213(d) expenses that are dental and/or vision expenses only as limited by Section 9.f. h. HRA Integrated with Dental or Vision Only Coverage. This is an HRA Integrated with Dental and/or Vision Only Coverage under Section 9.g. Qualifying Medical Expenses are limited to reimbursement of IRC 213(d) expenses that are dental and/or vision expenses only as limited by Section 9.g. i. After-Tax Reimbursement Account. This is an After-Tax Reimbursement Account under Section 9.h. Qualifying Medical Expenses are limited to the following (select all that apply): January 20, 2026 E - 118 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 11 of 13 ©2021 RedQuote 1. Individual insurance premiums for ACA excepted benefits only. 2. Any Code Section 213(d) expense (excluding individual insurance premiums and employer group health plan premiums). j. TRICARE HRA. This is a TRICARE HRA under Section 9.i. Qualifying Medical Expenses are limited to the following, as long as they satisfy Code Section 213(d) (select all that apply): 1. Cost sharing under the TRICARE plan (deductible, copays and coinsurance). 2. Individual insurance premiums for TRICARE supplemental coverage. 3. Individual insurance premiums for ACA excepted benefit coverage. 4. Actual expenses incurred for services or supplies that are excepted benefits. k. QSEHRA. This is a QSEHRA under Section 9.j. Qualifying Medical Expenses include major medical insurance premiums of the Eligible Employee regardless of whether the insurance was purchased on the Exchange or elsewhere, plus the following (select all that apply): 1. Major medical insurance premiums for Covered Dependents. 2. Other health insurance premiums (such as dental and vision premiums) of the Eligible Employee and/or Covered Dependents. 3. Any other Code Section 213(d) expense of the Eligible Employee and/or Covered Dependents. Notwithstanding the above, a QSEHRA cannot reimburse employer sponsored group health plan coverage premiums or premium equivalents to the extent the premiums or premium equivalents were paid on a pre-tax basis. An Employer may limit or expand the provisions set forth above in this Section 16 for a particular type of HRA, as long as such limitations or expansions comply with applicable law as determined by the Claims Administrator. Explain the limitations or expansions as follows: _____________________________________________________________________________ 17. HEALTH FLEXIBLE SPENDING ARRANGEMENT If the Employer maintains a health flexible spending arrangement, claims will be processed in the following order: a. Health FSA expenses will be processed first. b. HRA expenses will be processed first. c. Not applicable no health FSA. January 20, 2026 E - 119 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 12 of 13 ©2021 RedQuote 18. CLAIMS FOR REIMBURSEMENT MUST BE FILED WITHIN a. ____90_____ days following each plan year AND, For Participants who terminate employment, will a different filing deadline apply? b. Yes, ___60______ days following termination of employment c. No 19. CARRY FORWARD Amounts not used by the end of a Plan Year shall: a. Carry forward to the next Plan Year. b. Carry forward to the next Plan Year, subject to the following limitations or restrictions: ____________________________________________________________________ c. Shall forfeit as of the end of the Plan Year NOTE 1: If this is an Excepted Benefit HRA under Section 9.e., amounts must forfeit as of the end of each Plan Year, subject to the carryover rule listed in Section 9.e. NOTE 2: If this is an Integrated HRA under Section 9.a., and this Section 19.c. forfeiture is selected, the annual waiver requirement of Notice 2013-54 does not apply (except in mid-year qualifying event situations). 20. SPEND DOWN After HRA eligibility terminates (e.g., termination of employment, retirement): a. Any unused amounts in an HRA Account will forfeit. NOTE: If this is an Integrated HRA under Section 9.a., selecting a forfeiture means that the termination waiver rule of Notice 2013-54 does not apply. b. Any unused amounts in an HRA Account will continue to be eligible for reimbursement. c. Any unused amounts in an HRA Account will continue to be eligible for reimbursement for retirees. d. Any unused amounts in an HRA Account will continue to be eligible for reimbursement for those Employees or individuals who satisfy the following conditions: ________________________________________________________________________ ____________________________________________, and for all other Employees or individuals unused amounts shall forfeit once HRA eligibility terminates. APPLICATION OF OTHER LAWS 21. FAMILY AND MEDICAL LEAVE ACT FMLA generally applies to Employers who have 50 or more employees in the preceding or current calendar year. (The Employer is required to inform RedQuote if this provision changes for any future calendar year.) a. FMLA applies. b. FMLA does not apply. 22. COBRA January 20, 2026 E - 120 REDQUOTE ADOPTION AGREEMENT HEALTH REIMBURSEMENT ARRANGEMENT Page 13 of 13 ©2021 RedQuote COBRA generally applies to Employers who have 20 or more employees in the preceding calendar year. (The Employer is required to inform RedQuote if this provision changes for any future calendar year.) a. COBRA applies. b. COBRA does not apply. c. COBRA does not apply because this is a QSEHRA. This Adoption Agreement may be used only in conjunction with the RedQuote Health Reimbursement Arrangement. This Adoption Agreement and the RedQuote Health Reimbursement Arrangement shall together be known as the Health Reimbursement Arrangement or HRA. CITY OF PORT ANGELES____________ Name of Employer By: Printed Name: Title: Signature Date: January 20, 2026 E - 121 Date: January 20, 2026 To: City Council From: Calvin W. Goings, Deputy City Manager Sarina Carrizosa, Finance Director Subject: Approving the Continuation of Merchant Services with National Cash Register (NCR) Relationship to Strategic Plan: This proposal aligns with Strategic Focus Area #2 Citywide Resource Optimization by ensuring the continuation of critical merchant services with National Cash Register (NCR). Background / Analysis: On December 5, 2023, City Council approved a three-year agreement with National Cash Register (NCR) for merchant services pertaining to licensing. The agreement with NCR has an option to automatically renew annually unless discontinued by either party. In order to continue providing seamless customers service for online payment portals for select permits, City staff is recommending moving forward authorizing staff to renew the agreement for an additional three years. NCR time commitments. Additionally, NCR has successfully provided services for both corporations and municipalities for more than 130 years and has provided the City with top notch merchant services for the last several years. City staff recommends Council authorize the City Manager or their designee to continue the existing agreement with NCR. Funding Overview:Funding is available as part of the approved 2026 City Budget. Attachments: 1. NCR Merchant Application and Agreement 2. NCR Government Addendum to the Processing Agreement Summary: On December 5, 2023, City Council approved a three-year agreement with National Cash Register (NCR) for merchant services for online permit payments. The agreement with NCR includes an option to automatically renew annually unless discontinued by either party. NCR has provided essential service to the City ensuring the necessary connection to online payment portals. City staff recommend the continuation of this existing service by NCR. Strategic Plan: Strategic Focus Area #2 Citywide Resource Optimization. Funding:Funding is available as part of the approved 2026 City Budget. Recommendation: 1) Authorize the City Manager or their designee to continue the existing agreement for up to an additional three years with National Cash Register, and 2) to sign all necessary contract documents, to administer the contract, and to make minor modifications. January 20, 2026 E - 122 Attachment 1 January 20, 2026 E - 123 Attachment 1 January 20, 2026 E - 124 Attachment 1 January 20, 2026 E - 125 Attachment 1 January 20, 2026 E - 126 Attachment 1 January 20, 2026 E - 127 Attachment 1 January 20, 2026 E - 128 Attachment 1 January 20, 2026 E - 129 Client Name Boarding Set Up 1. CIS system utilized 2. Web module utilized 3. IVR system utilized 4. POS system utilized 5. POS device(s) utilized 6. Merchant Category Code (MCC) The rates listed under Transaction Charges include interchange and other fees, charges and assessments imposed by the Bank or Payment Networks. Transactions that are fees are calculated by multiplying the applicable rate or percentage fee by the value of each settled transaction on a per transaction basis. Other fees that are per item, per transaction or assessed periodically will be charged as indicated on each line item. See Section 7 of the Terms & Conditions for information more about Settlement, Chargebacks and Processing Fees, and Section 11 of the Terms & Conditions for more information about Processing Fees. Printed Name: Signed Date ncr.com Fees Set up Fees FIXED Recurring Fees Transaction Charges Other Rates and Fees Options EMV Swipe Readers – $ NSF Check Returns Date: Attachment 1 January 20, 2026 E - 130 Attachment 1 January 20, 2026 E - 131 United States, Government Addendum to the Processing Agreement (NCR Payment Solutions) (Rev. 2020-10) NCR Confidential 1 Attachment 2 GOVERNMENT ADDENDUM TO THE PROCESSING AGREEMENT This GovernmentAddendumto the Processing Agreement Addendum the Merchant Card Processing Terms & Conditions to the Merchant Application and Agreement between NCR Payment Solutions, LLC NCR signed by City of Port Angeles Merchant Processing Agreement To the extent any provisions of this Addendum are inconsistent with the terms and conditions of the Processing Agreement,the provisions of this Addendum will prevail. All terms used but not defined herein shall have the meanings ascribed to them in the Processing Agreement. In consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Processing Agreement as follows: 1. Section 4.1 is hereby deleted in its entirety and replaced with the following: -Initial Term the date this Agreement is accepted by Processor and Bank, whether by signature or by the processing of presented Transactions. Thereafter, the Agreement will renew automatically for successive 1-Renewal Term non-renewal to the other at least 60 days prior to the expiration of the applicable term. If Merchant presents and Processor and Bank elects to process Transactions beyond the conclusion of the Initial Term or any Renewal Term, then the terms of this Agreement will continue to govern such 2. Section 5 is hereby deleted in its entirety and replaced with the following: During the Initial Term or any Renewal Term, Merchant shall not receive services, or enter into an agreement to receive services, from any other entity similar to those Services that Merchant has elected to receive from Processor for the Payment Types listed in Schedule A without 3. Section 14 is hereby deleted in its entirety and replaced with the following: 4. Merchant is responsible for any and all claims, demands, damages, judgments, liability or incurred by Processor or Bank those of its employees, consultants, contractors, agents, officers, and directors, whether or not f the Services (including, without limitation, for refunds, Chargebacks, or liability assessments oint of sale equipment, download equipment, and point of sale software updates or to use EMV enabled equipment supported by Processor and/or Bank.; (v) -party services or service providers, including gateways, value added resellers, and independent software vendors; (vi) any proceeding, litigation, or arbitration commenced by a third party arising out of or relating to any actual or alleged act or omission by Merchant; and/or (vii) any demands, investigations, or subpoenas (or similar process) received related to Merchant or its Transactions, whether initiated by regulators, law enforcement, civil litigants, or lienholders under the Uniform Commercial Code. January 20, 2026 E - 132 United States, Government Addendum to the Processing Agreement (NCR Payment Solutions) (Rev. 2020-10) NCR Confidential 2 4. The following new Sections 24.8 and 24.9 are hereby added: Merchant Confidential Information through written or electronic means by Merchant to Processor in connection with this Agreement, and which is either clearly identified as confidential when disclosed or is of a nature such that Processor knows or should know it to be confidential. Merchant Confidential Information does not include information that: (a) was possessed or known by Processor without any confidentiality obligations prior to receipt under this Agreement; (b) becomes publicly available through no act or omission of Processor; (c) is furnished to Processor by a third party where Processor does not know and reasonably does not believe it to be subject to use or disclosure restrictions; or (d) is independently developed by or for Processor without breach of this Agreement. 24.9 For a period of two years from the date of first disclosure, and notwithstanding termination of this Agreement, Processor will: (a) exercise the same degree of care in protecting Merchant Confidential Information as it uses to protect its own confidential information of a similar nature, but in no event less than reasonable care;and(b) except as provided under Section 24.6, not disclose Merchant Confidential Information to any person, except to those of its Affiliates, and its and their employees and contractors, who have a legitimate need to know it, and who are obligated to protect any disclosed Merchant Confidential Information under terms no less protective than those contained in this Section. 5. Section 27.1 is hereby deleted in its entirety and replaced with the following: 27.1. All disputes or controversies of any nature whatsoever (whether in contract, tort, or otherwise) arising out of, relating to, or in connection with (a) this Agreement, (b) the relationships which result from this Agreement, or (c) the validity, scope, interpretation, or enforceability of the choice of law and venue provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of Washington without giving effect to any choice or conflict of law provision or rule (whether of the State of Washington or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Washington. 6. Except as modified by this Addendum, the Services are provided subject to the terms and conditions of the Processing Agreement. This Addendum andthe Processing Agreement constitute the entire agreement between the parties with respect to the Services. Any modifications hereto shall be in writing and executed by the party to be bound thereby. [SIGNATURES ON FOLLOWING PAGE] January 20, 2026 E - 133 United States, Government Addendum to the Processing Agreement (NCR Payment Solutions) (Rev. 2020-10) NCR Confidential 3 Agreed and accepted by: NCR By: By: Signature Signature Printed Name Printed Name Title Title January 20, 2026 E - 134 Date: January 20, 2026 To: City Council From: Scott Curtin,Director of Public Works & Utilities Subject: FY 2025-2027 Water Quality Stormwater Capacity Grant Agreement Contract No. WQSWCAP-2527-PoAnPW-00146 Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This proposal directly aligns with Strategic Focus Area #2 Citywide Resource Optimization, and specifically furthers Goal C maximize grant funding/support for State funding. Background / Analysis: The Washington State Department of Ecology (Ecology) provides assistance to NPDES Municipal Stormwater General Permitees though the Biennial Water Quality Stormwater Capacity Grant program. This grant funding program provides financial assistance for activities, technical resources, and equipment that will help local governments implement the requirements of the Eastern and Western Washington Municipal Stormwater permits. Staff may submit reimbursement requests through the grant for NPDES stormwater program related components. The NPDES program may include the following activities; public outreach education, illicit discharge detection and elimination programs, runoff control from development sites, pollution prevention, operation and maintenance programs, development and implementation of the source control program, equipment purchases that result in improved compliance with permit requirements, and implementing necessary updates required by the 2024-2029 Phase II permit. Capital construction projects are not eligible for funding through this grant program. Summary: Staff is requesting City Council approval to accept the Washington State Department of Ecology (ECY) FY2025-2027 Biennial Stormwater Capacity Grant in the amount of $120,000. This pass- through grant provides funding to implement and manage National Pollutant Discharge Elimination System (NPDES) Phase II Municipal Stormwater Permit requirements. Strategic Plan: This proposal directly aligns with Strategic Focus Area #2 Citywide Resource Optimization, and specifically furthers Goal C. Funding: The Washington State Department of Ecology will reimburse the City for qualified stormwater grant administration and permit implementation expenditures up to $120,000 incurred between July 1st, 2025, and March 31st, 2027. There are no cost share requirements, and the grant award will cover 100 percent of eligible costs. Recommendation: 1) Accept the Washington State Department of Ecology FY2025-2027 Biennial Stormwater Capacity Grant in the amount of $120,000, and 2) authorize the City Manager to sign all grant-related documents, to administer the grant, and to make minor modifications to the agreement, as necessary. January 20, 2026 E - 135 In July, 2025, Staff submitted a grant application and in December, 2025, Staff were notified the City was successful in obtaining grant funding from the Washington State Department of Ecology. Funding Overview: The Washington State Department of Ecology will reimburse the City for qualified stormwater grant administration and permit implementation expenditures up to $120,000 incurred between July 1st, 2025, and March 31st, 2027. There are no cost share requirements, and the grant award will cover 100 percent of eligible costs. City staff are required to provide quarterly progress reports with each reimbursement request, prepare agreement close-out reports, and outcome summary reports to Ecology. Attachment(s): Draft Agreement WQSWCAP-2527-PoAnPW-00146 January 20, 2026 E - 136                                   January 20, 2026 E - 137                                                      January 20, 2026 E - 138                                    January 20, 2026 E - 139                                        January 20, 2026 E - 140                                          January 20, 2026 E - 141                                                     January 20, 2026 E - 142                       January 20, 2026 E - 143                                          January 20, 2026 E - 144                                               January 20, 2026 E - 145                                                       January 20, 2026 E - 146           January 20, 2026 E - 147                                                 January 20, 2026 E - 148                                                    January 20, 2026 E - 149                                                   January 20, 2026 E - 150                                                  January 20, 2026 E - 151                                                   January 20, 2026 E - 152                                                      January 20, 2026 E - 153                                                    January 20, 2026 E - 154                                                    January 20, 2026 E - 155                              January 20, 2026 E - 156 1 Date: January 20, 2026 To: City Council From: Calvin W. Goings, Deputy City Manager Shannen Cartmel, Community and Economic Development Manager Ben Braudrick, Planning Supervisor Jalyn Boado, Housing Administrator Subject: Adopting Procedures for Accepting Donated Permit-Ready Plans Relationship to Strategic Plan: The 2025–2026 Strategic Plan (Resolution 10-24), adopted October 1, 2024, identifies housing as a core priority and directs the City to update the Housing Action Plan to address current and future housing needs. This proposal advances Strategic Focus Area #3 – Housing, particularly Goal B, by expanding the City’s Permit-Ready Plan Program, an implementation task identified in the 2025 Housing Action Plan update, to provide additional housing design options that reduce cost and development timelines. Background / Analysis: In 2022, the City received a Housing Action Plan Implementation Grant from the Washington State Department of Commerce to implement Task #3 of the City’s 2019 Housing Action Plan, which established the Accessory Dwelling Unit (ADU) Program. The grant funded the development of five Permit-Ready Plans, including a 480-square-foot studio, a 600-square-foot one-bedroom unit, an 800-square-foot single-story unit, an 800-square-foot two-story unit, and a townhouse unit, for use by community members building within city limits. The Permit-Ready Plan Program is intended to lower barriers to infill housing development by reducing design costs and shortening permit review timelines. All plan sets were prepared in compliance with adopted building codes and the City’s design standards. Since the program’s inception, building permits Summary: In 2023, the City of Port Angeles launched the Permit-Ready Plan Program. This program offers pre-approved and thoughtfully designed construction documents for various housing types and configurations at no cost to community members building within the city limits. The Permit-Ready Plans are also eligible for fee waivers as outlined in Resolution 02-25. The City is recommending implementing procedures to expand this program by accepting new donated Permit- Ready Plans for the online library, which will help further reduce costs for housing builders and streamline the permit review process. Strategic Plan: Strategic Focus Area #3 - Goal B, Measure 2. Funding: There is no cost associated with accepting donated engineered plans. Recommendation: 1) Pass the Resolution implementing streamlined procedures for accepting engineered plan sets into the City’s Permit-Ready Plan Program, and 2) authorize the City Manager or their designee to enter into and administer donation agreements necessary to implement these procedures and to make minor modifications. January 20, 2025 H - 1 2 have been issued for multiple plan sets, including four 480-square-foot units, one 600-square-foot unit, one 800-square-foot single-story unit, and four townhouse units. In 2025, City Council expanded housing incentives by approving fee waivers for projects utilizing Permit-Ready Plans. Task #3 of the 2025 Housing Action Plan further directs the City to expand the Permit-Ready Plan Library and identify additional tools to make these homes easier to build and finance. The proposed resolution establishes formal procedures for accepting donated engineered plan sets into the City’s Permit-Ready Plan Program. These procedures allow the City to accept and publish qualifying plan sets for public use, at no cost to the City, while ensuring consistency with current codes, design standards, and community housing goals. The procedures outlined in the attached resolution ensure that: 1. Donated plan sets comply with the International Building Code, International Fire Code, International Residential Code, National Electrical Code, Washington State Energy Code, applicable provisions of the Port Angeles Municipal Code—including Chapters 17.21 and 17.22—and all other regulatory requirements in effect at the time of acceptance; 2. Applicants agree to update donated plans as code requirements change to remain eligible for inclusion in the Permit-Ready Plan Program; and 3. Accepted plan sets contribute meaningfully to community housing needs by providing multifamily housing, middle housing, infill housing, modular or prefabricated construction, sustainable building materials, or innovative design techniques, as defined in Chapter 17.21 of the Port Angeles Municipal Code. If a proposed plan set does not meet these criteria, the donating firm must demonstrate how the design addresses housing needs identified in the 2025 Housing Needs Assessment. The acceptance of any donated plan as part of the City’s Permit-Ready Plans Program would automatically qualify the use of any donated plan for permit fee waivers in line with Council direction to further promote affordable housing. Funding Overview: N/A Attachment(s): 1. Resolution adopting procedures to accept donated engineered plan sets into the City’s Permit- Ready Plan Program. January 20, 2025 H - 2 1 RESOLUTION NO. _______ A RESOLUTION of the City Council of the City of Port Angeles, Washington, Adopting Procedures for Accepting Donated Permit-Ready Plans. WHEREAS, the City desires to expand and update the Permit-Ready Plan Program available to City residents to reduce permitting costs of affordable housing and simplify permit review; and WHEREAS, Resolution 02-25 made the Permit-Ready Plan Program eligible for fee waivers regardless of the residential use as a primary residence or accessory dwelling unit; and WHEREAS, when new engineered plan sets are offered for donation to the City, the City’s permitting team will review offered plan sets to determine whether the plan sets meet the International Building Code, the International Fire Code, the International Residential Code, the National Electrical Code, the Washington State Energy Code, the Port Angeles Municipal Code, chapters 17.21 and 17.22, design standards, and any other applicable regulatory codes in effect. WHEREAS, the City of Port Angeles may accept donated engineered plan sets and add them to the Permit-Ready Plan library on the City’s website. WHEREAS, the applicant must agree to update plans when code requirements change to remain in the Permit-Ready Plan Program. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY RESOLVE AS FOLLOWS: Section 1. – Permit-Ready Plan Findings, Procedures, and Adoption of Exhibits. The City will implement a program through which the City may review and accept by donation, without cost to the City or residents, engineered plan sets for residential and multi-family structures. Within the Port Angeles city limits, residential and multi-family structures may be constructed using such plans without further plan review. The procedures for accepting donated engineered plan sets as set forth in Exhibit A are hereby adopted. The example agreement template for donation of engineered plan sets as set forth in Exhibit B is hereby adopted. Section 2. – Classification. The Permit-Ready engineered plan sets, Procedures, and Agreements referenced in Resolution shall be kept on file with the City Clerk, available for public inspection. Section 3. – Corrections. The City Clerk and the codifiers of this resolution are authorized to make necessary corrections to this resolution, including, but not limited to, the correction of the scrivener’s/clerical errors, references to other lo cal, state, or federal laws, codes, or rules or regulations, or numbering, section/subsection numbers, and any references thereto. January 20, 2025 H - 3 2 Section 4. – Effective Date. This Resolution, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum. This resolution shall take effect on February 1, 2026, upon the publication of an approved summary thereof consisting of the title. PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 20th day of January 2026. _______________________________ Kate Dexter, Mayor ATTEST: ________________________________ Kari Martinez-Bailey, City Clerk APPROVED AS TO FORM: _______________________________ William E. Bloor, City Attorney January 20, 2025 H - 4 3 Exhibit A Permit-Ready Plan Donation Procedures The City of Port Angeles has determined that the Department of Community and Economic Development's (CED) Building and Planning teams will accept Permit-Ready Plans only if they are donated to the City. Any Permit-Ready Plans accepted into the program must meet one of the following criteria: • Provides multifamily housing units, • Uses sustainable building materials, • Uses innovative design techniques, • Provides properly licensed modular or prefabricated options, or • Provides infill or middle housing defined in Chapter 17.21 PAMC. If the plan sets do not meet the criteria identified above, the company/design firm donating the plans must demonstrate that the proposed plans meet the community's needs as outlined in the 2025 Housing Needs Assessment. This will be accomplished by submitting a written narrative to the CED Manager. To ensure a fair selection process, a single company, design firm, or housing developer may submit a limited number of engineered plan sets per year for review by the City and consideration in the Permit-Ready Plan Program, as determined by the CED Manager. Required Submittals: • General Building Permit Application • Building/Construction Plans: Detailed drawings/engineering of construction plans and elevations. • Engineering: Required for all projects in Seismic Zone E unless you demonstrate R301.2.2.1.2 IRC. • WSEC-R 2021 Code Edition Forms: Include energy compliance documentation per the Washington State Energy Code (e.g., WSEC residential or commercial compliance forms). Desired Submittals: • Pre-engineered fire sprinkler plans are preferred, especially for multifamily units with four or more units. • Project Narrative that includes information on how a potential builder can reach out to the design professional with additional questions. • Information about the cost to build the plan set (e.g., a sample cost estimate from a contractor). January 20, 2025 H - 5 4 Following administrative review and decision by the CED Manager, the City will now accept the donated engineered plan set and evaluate them to ensure they meet the outlined criteria using the following procedures: Application Procedures: 1. Housing developers, design firms, and builders can submit a Permit-Ready Plan Donation Submittal Application and the required submittals (listed above) digitally to ced@cityofpa.us, care of the Housing Administrator. 2. A project planner will be assigned, and they will route the plan set like a traditional building permit. The City’s permitting team (Building, Planning, Public Works, and Fire) will review the plan set for code compliance and completeness. a. The City’s team will review the plan using Type I permitting procedures. 3. Once the City’s permitting team approves the plan, the project planner will work with the applicant and the City’s Legal department to draft a donation agreement. a. The donation agreement will be a legally binding contract that specifies: b. The donation agreement will be reviewed by the Housing Administrator, Legal Department, and CED Manager and sent to the applicant, City Manager, and City Attorney for final signature. 4. Once the professional agreement is signed, the Housing Administrator will then post a preview of the plan sets on the City website. After posting, the plan sets can be used by anyone developing housing within Port Angeles city limits, based upon the agreement limitations. January 20, 2025 H - 6 5 Exhibit B is an example template. Before an Agreement is signed, the terms and conditions set forth below may be altered by the City. Exhibit B AGREEMENT FOR DONATED SERVICES BETWEEN CITY OF PORT ANGELES AND CONSULTANT NAME THIS AGREEMENT is made and entered into by and between THE CITY OF PORT ANGELES, a non-charter code city and municipal corporation of the State of Washington, (hereinafter called the "CITY") and CONSULTANT NAME, a corporation authorized to do business in the State of Washington (hereinafter called the "CONSULTANT"). WHEREAS, the CITY desires to update the Permit-Ready Plan Program available to City residents with the goal of reducing permitting costs of affordable housing; and WHEREAS, the CONSULTANT represents that it is in full compliance with the statutes of the State of Washington for professional registration and/or other applicable requirements; and WHEREAS, the CONSULTANT represents that it has the background, experience, and ability to perform the work in accordance with the standards of the profession; and NOW, THEREFORE, in consideration of the above representations and the terms, conditions, covenants, and agreements set forth below, the parties hereto agree as follows: I SCOPE OF SERVICES The CONSULTANT will accomplish the work detailed below: 1. Building design and construction drawing plan sets for Permit-Ready Plan Program, including ADU, Cottage Housing, Duplex, Triplex, Small Lot Infill Housing, Single- family residences, Multifamily Housing, and Mixed-Use plans. 2. Structural engineering review and design of plan set drawings. The CITY may review the CONSULTANT'S services, and if they do not meet the Professional Standard of Care, the CONSULTANT shall make such changes as may be required by the CITY. The CONSULTANT agrees that all services performed under this Agreement shall be in accordance with the standards of the architectural and design profession for similar services on similar projects of like size and nature and in compliance with applicable federal, state and local laws existing at the time the services are performed, including compliance with the International Building Code, the International Fire Code, the International Residential Code, the National Electrical Code, the Washington State Energy Code, the Port Angeles Municipal Code, chapters January 20, 2025 H - 7 6 17.21 and 17.22, design standards, and any other applicable regulatory codes in effect. The CONSULTANT agrees to update the engineered plan sets due to updates to the building and energy codes. If the engineered plan sets are not updated to reflect the requirements of current codes in effect, the plans will be removed from the City’s Permit-Ready Plan page on the City website. II OWNERSHIP OF DOCUMENTS CONSULTANT is hereby advised that upon donation, the engineered plan set(s) are rightfully owned by the CITY, and the CONSULTANT transfers ownership interest of all Materials to the CITY. CONSULTANT shall exert all reasonable effort to advise the CITY, at the time of delivery of Materials furnished under this Contract, of all known or potential invasions of privacy contained therein and of any portion of such document which was not produced in the performance of this Contract. CONSULTANT shall provide CITY with prompt written notice of each notice or claim of infringement received by the CONSULTANT with respect to any Materials delivered under this Contract. CITY shall have the right to modify or remove any restrictive markings placed upon the Materials by the CONSULTANT. III TIME OF PERFORMANCE The CONSULTANT may begin work upon execution of this Agreement by both parties and written direction to proceed from CITY, and the duration of the Agreement shall extend through MONTH DAY, YEAR. IV DONATION The CITY will not pay the CONSULTANT for the engineered plan set(s) and will only accept donations of engineered plans for the Permit-Ready Plan program. V INDEPENDENT CONTRACTOR STATUS The relationship created by this Agreement is that of an owner-independent contractor. The CONSULTANT is not an employee of the CITY and is not entitled to the benefits provided by the CITY to its employees. The CONSULTANT, as an independent contractor, has the authority to control and direct the performance within the Scope of Service. The CONSULTANT shall assume full responsibility for payment of all federal, state, and local taxes or contributions imposed or required, including, but not limited to, unemployment insurance, Social Security, and income tax. VI TERMINATION OF AGREEMENT A. The CITY may terminate this Agreement at any time, with or without cause, upon not less than ten (10) days' written notice to the CONSULTANT. Written notice will be sent by certified mail to the CONSULTANT's designated representative at the address provided by the CONSULTANT. As a condition precedent to termination for cause, the CONSULTANT shall be given the notice period to cure such cause and shall have failed to so cure. January 20, 2025 H - 8 7 VII INDEMNIFICATION/HOLD HARMLESS CONSULTANT shall defend, indemnify and hold the CITY, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the CONSULTANT in performance of this Agreement, except for injuries and damages caused by the sole negligence of the CITY. However, should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the CONSULTANT, the CITY, and the officers, officials, employees, and volunteers of either, the CONSULTANT'S liability hereunder shall be only to the extent of the CONSULTANT'S negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the CONSULTANT'S waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. VIII INSURANCE The CONSULTANT shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the CONSULTANT, its agents, representatives, or employees. No Limitation. CONSULTANT’S maintenance of insurance as required by the Agreement shall not be construed to limit the liability of the CONSULTANT to the coverage provided by such insurance, or otherwise limit the CITY’S recourse to any remedy available at law or in equity. A. MINIMUM SCOPE OF INSURANCE Consultant shall obtain insurance of the types described below: 1. Commercial General Liability insurance appropriate to the Consultant’s profession. 2. Professional Liability insurance appropriate to the Consultant’s profession. B. MINIMUM AMOUNTS OF INSURANCE Consultant shall maintain the following insurance limits: 1. Commercial General Liability insurance shall be written with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate. 2. Professional Liability insurance shall be written with limits no less than $2,000,000 per claim and $2,000,000 policy aggregate limit. C. OTHER INSURANCE PROVISION The CONSULTANT’S Commercial General Liability insurance policies are to contain, or be endorsed to contain, that they shall be primary insurance as respect the CITY. Any Insurance, self-insurance, or insurance pool coverage maintained by the CITY shall be excess of the CONSULTANT’S insurance and shall not contribute with it. January 20, 2025 H - 9 8 D. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. E. NOTICE OF CANCELLATION The CONSULTANT shall provide the CITY with written notice of any policy cancellation, within two business days of their receipt of such notice. F. FAILURE TO MAINTAIN INSURANCE Failure on the part of the CONSULTANT to maintain the insurance as required shall constitute a material breach of contract, upon which the CITY may, after giving five business days’ notice to the CONSULTANT to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith. IX APPLICABLE LAW This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington, and in the event of dispute, the venue of any litigation brought hereunder shall be Clallam County. X CONFLICTS In the event there is any conflict between the terms and conditions contained in this Agreement and the terms and conditions contained in Exhibit A or in any other document that is incorporated into or made a part of the contract between the CONSULTANT and the CITY, the terms and conditions of this Agreement shall control. XI SIGNATURES This Agreement, constitutes the entire Agreement, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. This Agreement is effective and binding as of the date for the last signature affixed below. CITY OF PORT ANGELES: CONSULTANT: By: By: Nathan West, City Manager Name, Title Date Date Approved as to form: Attest: William E. Bloor, City Attorney Kari Martinez-Bailey, City Clerk January 20, 2025 H - 10 Date: January 20, 2026 To: City Council From: Nathan A. West, City Manager Kari Martinez-Bailey, City Clerk Subject: City Council Assignments for 2026-2027 Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This proposal directly aligns with Strategic Focus Area #1, specifically Goal C, Increase community engagement outreach with the public and local businesses. Background / Analysis: Members of the Port Angeles City Council not only dedicate time to their duties as Council members, but they are also asked to serve on a variety of internal and external boards, committees, and commissions. Appointments to these committees are typically for two years. Committee assignments are made by the Council as a body, except for the Utility Advisory Committee (UAC). By ordinance, the Mayor is given the authority to appoint three Council members to serve on the UAC. Selection of Mayor The Mayor typically recommends to the Council the composition of the various boards, commissions, and committees. Since a Mayor for 2026-2028 has yet to be elected by the Council, both nominees for the role collaborated directly to arrive at the recommendations presented this evening. They recommended two scenarios for the assignment list. One reflects assignments if Dexter is Mayor and one reflects assignments if Carr is Mayor. Both scenarios are attached as the “Draft Dexter City Council Assignment List” and the “Draft Carr City Council Assignment List.” Summary: Council members are asked to serve on a variety of internal and external boards, committees, and commissions. Some assignments are either required by State statute or by the organization’s bylaws. Every two years, City Council reviews the current assignments for possible alteration and updates in assignments. The Mayor works with Council members to determine each member’s interest in serving on these various committees and then presents a draft assignment list to the full Council for its consideration. Strategic Plan: This proposal directly aligns with Strategic Focus Area #1, specifically Goal C, Increase community engagement outreach with the public and local businesses. Funding: N/A Recommendation: 1) Council discussion, 2) adjust assignments if needed, and 3) approve committee assignments for 2026-2027. January 20, 2026 I - 1 Expanded Civic Engagement During the meeting on January 6, City Manager West requested that Council express their interest in additional civic engagement opportunities. There were four responses, and collectively, the list included: Civic Engagement Location or Activity Number of Council members interested The Boys & Girls Club 2 Peninsula Community College 2 Anime Cat 2 Schools 3 Senior Housing 3 Farmer’s Market 3 Senior Center 3 Library 2 Town Halls 2 Shelter 2 Field Hall Coffee Bar 1 Ice Cream Social 2 Staff would encourage additional discussion on engagement opportunities to achieve a majority consensus before proceeding as these activities require scheduling and arrangement by staff. Additions/Removals Council members were also asked if there were boards, committees or commissions they wished to add or remove. Council has traditionally considered the appointment list every two years during their meetings in January of even numbered years. Furthermore, after considering the list of Council assignments, Council may also choose to add or remove assignments altogether. Only one Council member requested additional assignments for Council. The cooperative effort between the assignments by Carr and Dexter does recommend the removal of two assignments. The Wellness Committee and North Olympic Community Media. The responses received were as follows: Additions to Assignments Number of Council members interested Waterfront District 1 Elevate Port Angeles 1 Removal of Assignments Number of Council members interested Joint Task Force - PUD 1 Fiero Marine Life Center Board 1 North Olympic Community Media 3 North Olympic Peninsula Resource Conservation & Development Council 1 Peninsula Regional Transportation Planning Organization 1 Strait Ecosystem Recovery Network 1 January 20, 2026 I - 2 Ad Hoc Appointment Committee Staff is recommending this assignment be removed from the list at this time and recommending that these Committees be considered separately during the February 3rd meeting. ARC Since Council has yet to formally discuss the myriad of issues around camping and sanctioned encampments, staff is recommending that the ARC Committee not meet until Council as a whole weighs in on these important matters, in order to provide clear legislative direction to the ARC Committee. As part of the same discussion, staff will recommend that Council consider whether this is a necessary assignment and if so, ensure that no less than two Council members are assigned. PUD During the June 3, 2025, joint meeting between City Council and the Clallam County Public Utility District No. 1 Commissioners, Council and Commissioners expressed an interest in pursuing a joint task force made up of members of both bodies. During the September 16, 2025, follow-up discussion, Council voted 6-1 to add the Joint Task Force between the City of Port Angeles and Clallam County Public Utility District No. 1 to the City’s Council Boards, Committees, and Commission appointment list, and appoint 2-3 Council members to that task force at a time when the City Council assignments are considered. As a result, this new assignment has been included on the attached list. Alternates Most committees have been assigned an alternate representative. While alternates typically do not need to attend regular committee meetings, they do serve an important role in ensuring that the City is represented when the assigned Council member(s) cannot attend. Additionally, staff serve as alternates on some committees, including as the main alternate for the Olympic Peninsula Tourism Commission. By statute, only one Council member is assigned to the Lodging Tax Advisory Committee (LTAC), therefore there is no alternate assigned to the LTAC. Reporting The Council Reports section of the meeting agenda is intended to be a time when Council members can update the full body on the work of their various committee assignments. Notification The City Clerk’s Office will send correspondence to each committee, notifying them as to their appointed Council representative(s). City advisory committees will also reach out to Council members about the onboarding process. Funding Overview: N/A Attachment: Draft Dexter Proposed City Council Assignment List Draft Carr Proposed City Council Assignment List City of Port Angeles Committee Assignment Descriptions January 20, 2026 I - 3 Alternate representatives are assigned to most committees. If you cannot attend, please contact your alternate directly. Committee, Board or Commission DRAFT Dexter City Council Assignments List Members Dexter Carr Hamilton Miller Schwab Hodgson Suggs *Remove* Ad Hoc Appointment Committees Meets as needed / City Hall 3 Rep. Rep. Rep. Aligned Response and Care (ARC) Team Meets 4th Friday of each month / 1:30pm / City Hall 1 Rep. Rep. *Remove* City Wellness Committee Meets as needed, usually during the hours of 9 a.m. to 5 p.m. / City Hall 1 Rep. Clallam County Board of Health Meets 3rd Tuesday of each month at 1:30 p.m. / C.C.C.B.R.** No rep needed this year, resumes 2029 Clallam Transit System Board Meets 3rd Wednesday of each month at 10:00 a.m. / Rotating locations 2 + 2 Alt. Alt. Rep. Rep. Alt. Economic Development Council (EDC) Meets quarterly / 1:00pm / Downtown Federal Building 1 Staff Feiro Marine Life Center Board Meets 3rd Wednesday each month / 5:30 p.m. / Feiro 1 Rep. Fireman's Pension Board Meets once a year / City Hall Mayor + 1 Alt. Rep. Alt. G.M. Lauridsen Charity Trust Meets 3rd Thurs of month / 11am / F.U.M.C*Mayor Rep. Homelessness Task Force Meets 3rd Tuesday of every other month / 2:30pm-4:00 / C.C.C.B.R.** 1 + 1 Alt. Alt. Rep. Housing Solutions Committee Meets 1st Friday of every month / 9:00 a.m. 1 Staff + 1 staff alt. Joint Task Force – PUD (per 9/16/2025 Council Action) 2-3 Council members / Meets Quarterly TBD 2 to 3 Rep. Rep. Law and Justice Council Meets as needed / C.C.C.B.R.** 1 Rep. Alt. LEOFF I Disability Board Meets quarterly 2nd Thursday / City Hall Mayor +1 Rep. Alt. Lodging Tax Advisory Committee Meets as needed / City Hall 1 Rep. January 20, 2026 I - 4 Alternate representatives are assigned to most committees. If you cannot attend, please contact your alternate directly. * F.U.M.C. - First United Methodist Church ** C.C.C.B.R. - Clallam County Commissioner's Board Room Committee, Board or Commission DRAFT City Council Assignments List Members Dexter Carr Hamilton Miller Schwab Hodgson Suggs Marine Resources Committee Meets 3rd Monday of the month / 5:30pm Clallam County Courthouse 1 + 1 Alt. Alt. Rep. *Remove* North Olympic Community Media Meets Quarterly/ Virtually / email info@papaonline.com for link to attend 1 North Olympic Peninsula Recompete Coalition Meets quarterly on 1st Thursday / Virtually or in-person TBD 1 + 1 Alt. Rep. Alt. North Olympic Peninsula Resource Conservation & Development Council Meets 4th Thursday / 2pm / Virtually 1 + 1 Alt. Alt. Rep Olympic Peninsula Tourism Commission Meets first Thursday/ 11am / Location rotates 1 + 1 Staff Rep. Peninsula Regional Transportation Planning Organization Meets 3rd Friday of every other month / 10 am / Location varies 1 + 1 Alt. Rep. Alt. Port Angeles Regional Chamber of Commerce Meets 3rd Thursday every month/ 8am / Location varies 1+ 1 Alt. Alt. Rep. Regional Fire and EMS Delivery Review Meets 3rd Wednesday/ 3pm/ Fire District #2 1 + 1 alt. +1 Staff Alt. Rep. Solid Waste Advisory Committee Meets 4th Wednesday every other month / 3 p.m. / C.C.C.B.R.** 1 + 1 Alt. Rep. Alt. Strait Ecosystem Recovery Network Meets quarterly / Red Cedar Hall in Blyn 1 + 1 Alt. Alt. Rep. Volunteer Fireman's Pension Board Meets once a year / City Hall Mayor + 1 Alt. Rep. Alt. Utility Advisory Committee Meets 2nd Tuesday of each month / 3 pm / City Hall 3 + 1 Alt. Rep. Rep. Rep. Alt. William Shore Memorial Pool District 4th Tuesday / 3 pm / C.C.C.B.R.** 2 + 1 Alt. Alt. Rep. Rep. January 20, 2026 I - 5 Alternate representatives are assigned to most committees. If you cannot attend, please contact your alternate directly. Committee, Board or Commission DRAFT Carr City Council Assignments List Members Dexter Carr Hamilton Miller Schwab Hodgson Suggs *Remove*Ad Hoc Appointment Committees Meets as needed / City Hall 3 Rep. Rep. Rep. Aligned Response and Care (ARC) Team Meets 4th Friday of each month / 1:30pm / City Hall 1 Rep Rep *Remove* City Wellness Committee Meets as needed, usually during the hours of 9 a.m. to 5 p.m. / City Hall 1 Rep. Clallam County Board of Health Meets 3rd Tuesday of each month at 1:30 p.m. / C.C.C.B.R.** No rep needed this year, resumes 2029 Clallam Transit System Board Meets 3rd Wednesday of each month at 10:00 a.m. / Rotating locations 2 + 2 Alt. Rep. Alt. Rep. Alt. Economic Development Council (EDC) Meets quarterly / 1:00pm / Downtown Federal Building 1 Staff Feiro Marine Life Center Board Meets 3rd Wednesday each month / 5:30 p.m. / Feiro 1 + 1 Alt. Rep Fireman's Pension Board Meets once a year / City Hall Mayor + 1 Alt. Alt. Rep. G.M. Lauridsen Charity Trust Meets 3rd Thurs of month / 11am / F.U.M.C*Mayor Rep. Homelessness Task Force Meets 3rd Tuesday of every other month / 2:30pm-4:00 / C.C.C.B.R.** 1 + 1 Alt. Alt. Rep. Housing Solutions Committee Meets 1st Friday of every month / 9:00 a.m. 1 Staff + 1 Staff Alt. Joint Task Force – PUD (per 9/16/2025 Council Action) 2-3 Council members / Meets Quarterly TBD 2 to 3 Rep. Rep. Law and Justice Council Meets as needed / C.C.C.B.R.** 1 Alt. Rep. LEOFF I Disability Board Meets quarterly 2nd Thursday / City Hall Mayor +1 Alt. Rep. Lodging Tax Advisory Committee Meets as needed / City Hall 1 Rep. January 20, 2026 I - 6 Alternate representatives are assigned to most committees. If you cannot attend, please contact your alternate directly. * F.U.M.C. - First United Methodist Church ** C.C.C.B.R. - Clallam County Commissioner's Board Room Committee, Board or Commission DRAFT City Council Assignments List Members Dexter Carr Hamilton Miller Schwab Hodgson Suggs Marine Resources Committee Meets 3rd Monday of the month / 5:30pm Clallam County Courthouse 1 + 1 Alt. Alt. Rep. *Remove* North Olympic Community Media Meets Quarterly/ Virtually / email info@papaonline.com for link to attend 1 North Olympic Peninsula Recompete Coalition Meets quarterly on 1st Thursday / Virtually or in-person TBD 1 + 1 Alt. Rep. Alt. North Olympic Peninsula Resource Conservation & Development Council Meets 4th Thursday / 2pm / Virtually 1 + 1 Alt. Alt. Rep. Olympic Peninsula Tourism Commission Meets first Thursday/ 11am / Location rotates 1 + 1 Staff Rep. Peninsula Regional Transportation Planning Organization Meets 3rd Friday of every other month / 10 am / Location varies 1 + 1 Alt. Alt. Rep. Port Angeles Regional Chamber of Commerce Meets 3rd Thursday every month/ 8am / Location varies 1+ 1 Alt. Alt. Rep. Regional Fire and EMS Delivery Review Meets 3rd Wednesday/ 3pm/ Fire District #2 1 + 1 Staff Alt. Rep. Solid Waste Advisory Committee Meets 4th Wednesday every other month / 3 p.m. / C.C.C.B.R.** 1 + 1 Alt. Rep. Alt. Strait Ecosystem Recovery Network Meets quarterly / Red Cedar Hall in Blyn 1 + 1 Alt. Alt. Rep. Volunteer Fireman's Pension Board Meets once a year / City Hall Mayor + 1 Alt. Alt. Rep. Utility Advisory Committee Meets 2nd Tuesday of each month / 3 pm / City Hall 3 + 1 Alt. Rep. Rep. Rep. Alt. William Shore Memorial Pool District 4th Tuesday / 3 pm / C.C.C.B.R.** 2 + 1 Alt. Alt. Rep. Rep. January 20, 2026 I - 7 321 East Fifth Street Port Angeles, WA 98362 1 City of Port Angeles Committee Assignment Descriptions Ad Hoc Appointment Committee 3 Council member assigned Meets as needed / City Hall Sponsor: City of Port Angeles In accordance with Ordinance #3743, five ad hoc appointment committees meet and review applicants for the City’s five Permanent Committees. The members of the ad hoc committee will consist of up to three Council members, one member from the permanent commi ttee, other than the chair, selected by the permanent committee chair, and one staff member from the City department that staffs the permanent committee. All members will be voting members. Aligned Response and Care (ARC) Team 1 Council member assigned Meets the 4th Friday of the month / 1:30pm / City Hall Sponsor: City of Port Angeles ARC Team will ensure administrative alignment of operations by bringing together cross-functional decision makers to develop strategic city-wide plans to assist unsheltered individuals to safe, designated facilities, while also safeguarding public spaces. The outcome of this effort will be advising City officials and key stakeholders on recommended long-term strategies to increase housing of unsheltered individuals and sustain clean and safe public spaces. City Wellness Committee 1 Council member assigned Meets as needed, usually during the hours of 9am to 5pm / City Hall Sponsor: City of Port Angeles An employee wellness committee can serve many helpful functions with regard to the successful development and promotion of a wellness program. The committee consists of approximately 2-12 members, representing a variety of departments, work areas and specialties. January 20, 2026 I - 8 321 East Fifth Street Port Angeles, WA 98362 2 rd Clallam County Board of Health Forks Council member assigned until 12/31/2025, Sequim will follow in 2026, then Port Angeles in’29 (3-year terms) Meets the 3rd Tuesday of each month / 1:30 pm / Commissioner’s Board Room Sponsor: Clallam County In 2004 the Board of Health (BOH) adopted an ordinance creating an expanded Clallam County Board of Health. The Board consists of the Clallam County Board of Commissioners (3), a representative of the incorporated cities (1), a representative of a hospital district (1), and 2 at-large positions (2) for a total of 7 members. The incorporated cities of Clallam County are asked to reach consensus on a recommendation for appointment. Port Angeles, Forks and Sequim alternate appointing a representative to the BOH every three years. City of Forks Council member Jeff Gingell is currently on the board until 12/31/2025. The next member will be from City of Sequim starting in 2026. Clallam Transit System Board 2 Council members assigned Meets 3rd Wednesday of each month / 10am / Rotating locations Sponsor: Clallam Transit System Clallam Transit System (CTS) is organized into three departmental areas: operations, maintenance, and administration. Oversight of all agency operations is the responsibility of the General Manager. Legal counsel is at the disposal of the General Manager as needed. Agency policy oversight is the responsibility of an appointed panel of elected officials. The three municipalities within the service area (Forks, Port Angeles, and Sequim) and Clallam County each appoint two elected representatives to the CTS Board. Economic Development Council (EDC) 1 Staff member - City Manager assigned & 1 assigned staff member Meets quarterly / 1pm / Downtown First Federal Building Sponsor: Clallam County Partners throughout Clallam County work together to make the area a great place for businesses to thrive and people to live. By working collaboratively, they catalyze business leadership, nonpartisan problem- solving and data-driven strategies to get results for Clallam County. Feiro Marine Life Center Board 1 Council member assigned Meets 3rd Wednesday of each month / 5:30 p.m. / Feiro Sponsor: Feiro A Feiro Board member spends on average between 5-10 hours per month providing organizational guidance during monthly board and committee meetings, working with the executive director on special initiatives, and volunteering to carry out programs and projects. January 20, 2026 I - 9 321 East Fifth Street Port Angeles, WA 98362 3 Fireman's Pension Board Mayor assigned Meets once a year at City Hall Sponsor: City of Port Angeles The Firemen’s Pension Board meets annually and consists of the Mayor, the City Clerk, two trustees, and the Chief Financial officer. The Board administers the Firemen’s Pension Plan (FPP), a closed, single- employer defined benefit pension plan established and amended in conformance with Chapter 41.185 RCW. The FPP provides retirement, disability, long-term care, and death benefits to fire fighters (hired prior to March 1, 1970) and their beneficiaries. As of October 15, 2017, four individuals and one spouse are covered by this system. GM. Lauridsen Charity Trust Mayor assigned Meets 3rd Thurs of month / 11am / First United Methodist Church Sponsor: G.M. Lauridsen Charity Trust The G.M. Lauridsen Charity Trust Fund provides aid, in the form of grants, to deserving widows in Clallam County. Money can be used for many purposes including medical needs, rent and utility payments. Homelessness Task Force 1 Council member assigned Meets 3rd Tuesday of every other month / 2:30-4:00pm / Clallam County Courthouse Sponsor: Clallam County The Role and Purpose of the Homelessness Task Force (HTF) is as stated by the Board of Clallam County Commissioners Resolution 85, 2005. This committee will follow Clallam County Policy and Procedure 952 - Boards and Committees except as amended by these bylaws. The HTF does not have the authority outside of its jurisdiction to enforce policy or create rules. The HTF provides an important link between the public and the Board of County Commissioners (BOCC). Task Force members provide important information about community needs and opinions that can affect Clallam County policies and lead to improved services for county citizens dealing with issues of housing or homelessness. January 20, 2026 I - 10 321 East Fifth Street Port Angeles, WA 98362 4 Housing Solutions Committee 1 Staff member assigned Meets the first Friday of each month / 9:00 a.m. / Clallam County Courthouse Sponsor: Clallam County The Clallam County Board of Commissioners recognizes the need to find innovative housing solutions in Clallam County. On March 15, 2022, the Board of County Commissioners established a Housing Solutions Committee under Resolution 32, 2022. The committee shall be responsible for developing programs to promote housing solutions in Clallam County. The committee will also make recommendations to the Board of Clallam County Commissioners for expenditures of 1406/1590 funds. Joint Task Force – PUD (per 9/16/2025 Council Action) 2-3 Council members assigned Meets Quarterly, TBD Sponsor: TBD At this time, the scope for the task force was discussed as the following three items: Joint Efforts on Alternative Energy Projects, Joint Purchasing and Bidding Opportunities, Joint Efforts Regarding Respective Bonneville Power Administration. Additional details would be discussed at the inaugural meeting of the Joint Task Force. Meeting frequency would be on a quarterly basis to assess shared priorities and examine innovative, cost-effective strategies to enhance service delivery, strengthen system infrastructure, and ensure long-term sustainability. Law and Justice Council 1 Council member assigned Meets as needed / Clallam Commissioners Board Room Sponsor: Clallam County The purpose of the Law and Justice Council is to provide a forum and structure to coordinate all civil and criminal justice agencies, programs and services in Clallam County. LEOFF I Disability Board 2 Council members assigned Meets quarterly on the 2nd Thursday / City Hall Sponsor: City of Port Angeles City of Port Angeles LEOFF I Disability Board – The COPA LEOFF I Disability Board duties include review of medical claims and requests for disability leave and retirement by LEOFF I members (law enforcement officers and firefighters who entered service before October 1, 1977). January 20, 2026 I - 11 321 East Fifth Street Port Angeles, WA 98362 5 Lodging Tax Advisory Committee 1 Council member assigned Meets as needed / City Council Chambers Sponsor: City of Port Angeles The Lodging Tax Advisory Committee reviews, comments, and makes recommendations to the City Council on activities and/or facilities to be funded by lodging excise tax revenues. The Committee’s recommendations must be related to the statutory purposes of paying for the cost of tourism promotion and/or acquisition or operation of tourism-related facilities. The members of the Lodging Tax Advisory Committee are appointed to one-year terms, with possible reappointment for successive terms. Marine Resources Committee 1 Council member assigned Meets 3rd Monday of the month / 5:30 pm / Meets at the Clallam County Courthouse Sponsor: Clallam County The Clallam County Marine Resources Committee (MRC) was established by the Clallam County Commissioners in 1999 to protect and enhance the local marine environment and contribute to the protection of the marine environment of the Northwest Straits region. The Clallam MRC is one of seven MRCs established in the Northwest Straits region as part of the Northwest Straits Marine Conservation Initiative. North Olympic Community Media 1 Council member assigned Meets quarterly – virtual / email info@papaonline.com for link to attend Sponsor: North Olympic Community Media Peninsula Area Public Access (PAPA) manages two public access channels - Astound by WAVE Cable 21 (standard definition/government focus) and 120 (high definition/community focus) - through an agreement with the City of Port Angeles which holds the franchise agreement. PAPA's mission is to offer local programming to county residents which reflects the interests and needs of the community. Astound reaches about 10,000 households throughout Clallam County In addition, Peninsula Area Public has apps that allow viewers to access our two channels over the internet on Roku, Amazon Fire and Apple TV as well as directly on our website. January 20, 2026 I - 12 321 East Fifth Street Port Angeles, WA 98362 6 st North Olympic Peninsula Recompete Coalition 1 Council member assigned & 1 alternate Meets quarterly on the 1st Thursday / Virtually or in-person TBD Sponsor: Clallam County The Recompete Pilot Program aims to reinvigorate the local economy and connect residents in the prime age employment group (ages 25-54) to good jobs in Clallam & Jefferson Counties. It is a federally-funded coalition of local governments, non-profits, community organizations, educational institutions, tribes, and more who are working together to create new pathways to meaningful careers on the North Olympic Peninsula. North Olympic Peninsula Resource Conservation & Development Council (NOP RC&D) 1 Council member assigned Meets 4th Thursday of the month / 2 pm/ Meets virtually Sponsor: NOP RC&D The goals of the NOP RC&D are: • To develop, support and carry out regional plans for economic and community development; • To support the efforts of other organizations and agencies to enhance quality of life in the region; • To provide networking opportunities to collaborate on and advance regional projects; • To leverage the coordination and cooperation of members in projects which enhance the economy and environment of the North Olympic Peninsula. Olympic Peninsula Tourism Commission 1 Council member assigned Meets the 1st Thursday of the month / 11am / Locations rotate Sponsor: Olympic Peninsula Tourism Commission Since January of 2015, the City of Port Angeles has contracted directly with the Olympic Peninsula Tourism Commission. The City joined eight other jurisdictions and/or entities in an inter-local operating agreement for the purpose of tourism promotion on the Olympic Peninsula. Peninsula Regional Transportation Planning Organization (PRTPO) 1 Council member assigned Meets 3rd Friday every other month / 10am / Location varies Sponsor: PRTPO The PRTPO is the Regional Transportation Planning Organization for Clallam, Jefferson, Mason and Kitsap Counties, located in Northwestern Washington State on the Olympic Peninsula. It is a voluntary association of cities, towns, counties, ports, tribes, transit agencies and major employers that work together to develop transportation plans designed to meet the region's future economic and population growth. January 20, 2026 I - 13 321 East Fifth Street Port Angeles, WA 98362 7 Port Angeles Regional Chamber of Commerce 1 Council member assigned Meets 3rd Thursday of the month / 8am / Location varies Sponsor: Port Angeles Regional Chamber of Commerce The mission of the Port Angeles Regional Chamber of Commerce is to provide services and cultivate an environment where businesses in the region can thrive and connect as a community. Regional Fire and EMS Delivery Review 1 Council member assigned & 1 staff member Meets 3rd Wednesday every other month / 3pm / Fire District # 2 Sponsor: City of Port Angeles This committee consists of representatives from the City of Port Angeles Fire Department, Fire District 2, and Fire District 3, reviewing opportunities to improve efficiencies between agencies. Solid Waste Advisory Committee 1 Council member assigned Meets 4th Wednesday every other month / 3pm / Clallam County Commissioners Board Room Sponsor: Clallam County Assists in the implementation of programs and policies concerning solid waste handling and disposal, and reviews and comments on proposed changes to the Comprehensive Solid Waste Management Plan. The committee is comprised of nine representatives; one from each of the incorporated cities, the waste industry, tribal councils, Clallam County, state and federal agencies, private industry, and one at-large. Strait Ecosystem Recovery Network 1 Council member assigned Meets quarterly / Red Cedar Hall in Blyn Sponsor: Strait Ecosystem Recovery Network As a collaborative network, we work toward a healthy and resilient ecosystem that sustains all life and human wellbeing on the North Olympic Peninsula and along the Strait of Juan de Fuca. The area served by the Strait Ecosystem Recovery Network stretches across the entire northern edge of Washington State’s Olympic Peninsula from Cape Flattery to Point Wilson. January 20, 2026 I - 14 321 East Fifth Street Port Angeles, WA 98362 8 Volunteer Fireman's Pension Board Mayor assigned, plus one additional Council member Meets once a year / City Hall Sponsor: City of Port Angeles The Volunteer Fire Fighters’ Relief and Pension System is a cost-sharing multiple-employer retirement system that was created by the Legislature in 1945 under Chapter 41.16 RCW. It provides pension, disability, and survivor benefits. Membership in the system requires service with a fire department of an electing municipality of Washington State, except those covered by LEOFF. Utility Advisory Committee 3 Council members assigned Meets 2nd Tuesday of each month / 3pm / Council Chambers Sponsor: City of Port Angeles The Utility Advisory Committee (UAC) gives advisory recommendations to the City Council on matters relating to City utility policies and operation. The UAC is comprised of three City Council members, one member representing the industrial customers of the City’s utilities, one member representing a licensed care facilities in the City, and three members that represent all other customers of the City’s utilities. Members are appointed to four-year terms, with a limit of two consecutive terms. William Shore Memorial Pool District 2 Council members assigned 4th Tuesday / 3pm / Clallam Commissioners Board Room Sponsor: William Shore Memorial Pool District A board of five Commissioners set policy and carry out the official business of the Pool District. Board Commissioners are composed of two City of Port Angeles Councilpersons, two Clallam County Commissioners and one at-large Commissioner, who is approved by the WSMPD governing board and can serve a four-year term. *Alternate representatives will be assigned to all committees. If you cannot attend, please contact your alternate directly. January 20, 2026 I - 15 Date: January 20, 2026 To: City Council From: Scott Curtin, Director of Public Works & Utilities Subject: Class B Biosolids Transportation & Beneficial Use Services SVC-2025-54 Relationship to Strategic Plan: The 2025 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This proposed contract directly aligns with Strategic Focus Area #4 - Infrastructure Development, Maintenance, and Connectivity. Background / Analysis: Biosolids are generated at the Wastewater Treatment Plant (WWTP) as a by- product of the biological treatment process that cleans wastewater. The plant typically produces approximately 30 tons per week. Biosolids provide beneficial use as an important source of soil nutrients for farmers and land managers. WWTP biosolids are anaerobically digested to meet Class B requirements per Washington State regulations. This contract provides a method of biosolids usage that complies with state and federal regulations. Tenelco Inc. will transport, and land apply the biosolids on their permitted properties in Douglas County, Washington. Funding Overview: The 2026 Wastewater Professional Services budget (403-7480-535-4710) includes funding in the amount of $220,500.00 for Biosolids Recycling. Summary: Staff is seeking City Council approval to award a service agreement SVC-2025-54, with Tenelco Inc., for transportation and beneficial use services of Wastewater Treatment Plant Class B Biosolids. Service Contract SVC-2025-54 bid closed on December 18, 2025. Tenelco Inc.’s bid was the only one received. Strategic Plan: This proposed contract directly aligns with Strategic Focus Area #4 – Infrastructure Development, Maintenance, and Connectivity. Funding: The 2026 Wastewater Professional Services budget (403-7480-535-4710) includes funding in the amount of $220,500.00 for Biosolids Recycling. Recommendation: Award a service contract, SVC-2025-54 to Tenelco Inc. for biosolids transport and beneficial use at a rate of $140.15 per ton thru December 31, 2026, with the option to renew for additional years, not exceeding three years and authorize the City Manager to sign all contract-related documents, to administer the contract and to make minor modifications as necessary. January 20, 2026 J - 1 Respectively Submitted: Scott Curtin, Public Works & Utilities Director Jonathan Boehme, City Engineer PROJECT, CONTRACTING AND GRANT STATUS REPORT PU B L I C W O R K S & U T I L I T I E S January 2026 January 20, 2026 L - 1 LIST OF ACRONYMS BPA: Bonneville Power Administration AIP: Arterial Improvement Program BRAC: Bridge Replacement Advisory Committee DOE: Department of Ecology PASD: Port Angeles School District NOSC: North Olympic Salmon Coalition DWSRF or SRF: Drinking Water State Revolving Fund or State Revolving Fund FEMA: Federal Emergency Management Agency HSIP: Highway Safety Improvement Program NOANet: Northwest Open Access Network PBS: Pedestrian and Bicycle Safety FHWA: Federal Highway Administration PSP: Puget Sound Partnership PSMP: Pedestrian Safety and Mobility Program PWTF: Public Works Trust Fund RCO: Recreation and Conservation Office RCO WWRP - Trails: Recreation Conservation Office Washington Wildlife and Recreation Program - Trails STBG: Surface Transportation Block Grant Program SRF: Salmon Recovery Funding TIB: State of Washington Transportation Improvement Board TBD: To Be Determined WSDOT: Washington State Department of Transportion WFL: Western Federal Lands USDOT: United Stated Department of Transportation RAISE: Rebuilding American Infrastructure with Sustainability and Equity WWTP: Waste Water Treatment Plant FBRB: Brian Abbott Fish Barrier Removal Board FMSIP: Freight Mobility Strategic Investment Board January 20, 2026 L - 2 G R A N T F U N D S PUBLIC WORKS STAFF ARE CURRENTLY MANAGING 30 ACTIVE GRANTS. TOTAL SECURED GRANT FUNDS: $40,672,382 PUBLIC WORKS STAFF HAVE APPLIED FOR 7 ADDITIONAL GRANTS. TOTAL FUNDS APPLIED FOR: $17,013,606 TOTAL GRANT FUNDS AVAILABLE FOR CITY LABOR REIMBURSEMENT: $3,065,297 January 20, 2026 L - 3 STORMWATER WA S T E W A T E R WATER DR0804 - Lincoln Park/Big Boy Pond Study TR0715 - 16 Street Stormwater retrofitth Stormwater Miscellaneous Grants and Contracts WW0918 Neighborhood Sewer Rehabilitation WW0110 Aeration Blower Replacement WW0122 Digester Cleaning and Inspection WW0523 WWTP UST Removal and Replacement WT0125 Jones Street Reservoir Replacement WT0325 Elwha Intake Structure Hydraulic System Maintenance Water Miscellaneous Grants and Contracts Wastewater Miscellaneous Grants and Contracts January 20, 2026 L - 4 SOLID WASTE LI G H T - O P S ROLG D9WH L9)HOOD4HR;9 8D4W9 D4G hR4W8D)W9 L9)HOOD4HR;9 L-.W€S9 8D4W9 D4G hR4W8D)W9 hė€mkmp€kn ROH H9WL4- hė€mkmp€ko 8HH 8LPPL4- TRANSPORTATION klmk € L-4DO hR4W8ROOH8 S-8DGH9 knmo € D8L4H 8L<H D<L4- |LOO W WR LOO Ę8LG-H} kllt € sW. W8HHW D<L4- | L4)RO4 WR Ė W} kmmk L89W8R4W HGH9W8LD4 4.D4)HPH4W9 knls lk W8HHW ĘLNH ĘR;OH<D8GW. 8D49SR8WDWLR4 PL9)HOOD4HR;9 8D4W9 D4G hR4W8D)W9 January 20, 2026 L - 5 MU L T I - U S E C O N T R A C T S Ė€mkmm€kl h;O:;U'O +9R;U)+9 +U<L)+9 Ė€mklt€ns :U;):;U'O '4G hL<LO 4-L4++UL4- +4+U'O 3L9)+OO'4+R;9 U'4:9 '4G hR4:U'):9 GENERAL Ė€mkmk€nk hĖĖ +).4L)'O ;SSRU: Ė€mkmp€kp ;U<+?L4- +U<L)+9 January 20, 2026 L - 6 Our consultant, Parametrix, has collected data including background information, survey data, wetland delineation report, and water level monitoring. Parametrix has used this information to produce a survey of the ponds and their respective structures along with a completed hydrologic and hydraulic (H&H) model. This project is in the approved 2026-2031 Capital Facilities Plan and is utility funded in the amount of $151,600.00 Db0ĭ04 C2JCOCJ PAbAĽ 2) O† POJD Parametrix / PSA-2023-20 Date Agreement Authorized by City Council: December 5, 2023 Date Amendment 1 Authorized by City Manager: December 3, 2024 Date Amendment 2 Authorized by City Manager: June 30, 2025 Date Amendment 3 Authorized by City Manager: September 26, 2025 Agreement Expired: December 31, 2025 aËo‚hÝ a‚Ý»Ư V™Ä‚¬Å¬Å¤ȃ ËÄÖh™o™¬hh¬Å¤Ý oË ‚o™ ËÅoقo AÄËéÅo 1 Lincoln Park Big Boy Pond Study Amend. 1, 2, & 3 - Time Extension $151,604.23 $117,328.51 $34,275.72 77.39% $0.00 $151,604.23 $0.00 $117,328.51 $0.00 $0.00 $34,275.72 77.39% CO N S U L T A N T January 20, 2026 L - 7 # nlÁù òõtΪ Ā Áù Āt ÁÜùĀ‘ÕÕ Ē‘Āªõ vą‘ÕÁĀĘ ÁÛòõtđªÛªÜĀù ‘Ā Ālª ÁÜĀªõùª ĀÁtÜù t· Ħī ùĀİ ‘ܦ ŋŌı ŋŌ ‘ܦŋŌ ùĀõªªĀùİ AÕÕ ùĀtõÛĒ‘Āªõ vą‘ÕÁĀĘŅªÜl‘Ü ªÛªÜĀù ùĀõą Āąõªù l‘đª ŸªªÜ ÁÜùĀ‘ÕÕª¦ tÜ  ‘ܦ ùĀõªªĀù ‘ܦ l‘đª ŸªªÜ ĀÁª¦ ÁÜĀt Ālª ªėÁùĀÁÜj ùĀtõÛĒ‘Āªõ ùĘùĀªÛİ tÜùĀõą ĀÁtÜ Áù ‘ÜĀÁ Áò‘Āª¦ Āt Ÿª tÛòÕªĀª¦ ÁÜ fòõÁÜj ħĥħīİ Āl Parametrix / PSA-2024-45‘Āª AjõªªÛªÜĀ Aòòõtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ JtđªÛŸªõ īı ħĥħĩ‘Āª A۪ܦ۪ÜĀ ĥĦ Aòòõtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ >ąÕĘ Ħı ħĥħĪAjõªªÛªÜĀ ėòÁõªùIJ >ąÜª Ĩĥı ħĥħī ICI / CON-2025-20‘Āª tÜĀõ‘ Ā Aòòõtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ >ąÜª ħĥħĪAÛtąÜĀIJ ŗĦıĦĭĮıĥħĭİĥĥ Total Grant Funds: $1,667,250)õ‘ÜĀ ftąõ ª ſ 2IJ Qļ€TŅħĥħĩŅ_t_AÜ_€ŅĥĥħĦĬAÛtąÜĀ )õ‘ÜĀ I‘Ā lĽCt‘Ü ‘Ā‘IJ ŗĦıīīĬıħĪĥ ·õtÛ fĀtõÛĒ‘Āªõ (ÁܑܠÁ‘ÕAùùÁùĀ‘Ü ª _õtjõ‘ÛĽĪű ÁĀĘ Û‘Ā l õªvąÁõª¦ nbĥĬĦĪ Ħī fĀõªªĀĀl fĀtõÛĒ‘Āªõ bªĀõt·ÁĀ Totals Task Remaining % CompleteBillings to DateContractAmount ĕ ĕĚth Ztreet ;,D Retro£it ƴ PZ&Ƥ Construction Agmt Amendment ĕ ƴ increase Žudget ǤĜĚƤĜĖę.ĝĚ ǤęĜƤĚĕĖ.Ĕĝ ǤĚėƤĜĔĔ.ęĚ Ęě.ĜĜ% ǤėęƤęĜĚ.Ěĝ ǤĕĖĖƤĘĕĖ.Ěę ǤĔ.ĔĔ ǤęĜƤĚĕĖ.Ĕĝ ǤĔ.ĔĔ ǤĚėƤĜĔĔ.ęĚ Ęě.ĜĜ% CO N S U L T A N T Totals Project Title Nov. to Dec.Change Orders Contract & RevisedAmountsPrior ChangeOrders ContractAmount ĕĚ Ztreet Ztormõater Retro£itth ǤĕƤĕĜĝƤĔĖĜ.ĔĔ ǤĔ.ĔĔ ǤĔ.ĔĔ ǤĕƤĕĜĝƤĔĖĜ.ĔĔ ǤĔ.ĔĔ ǤĕƤĕĜĝƤĔĖĜ.ĔĔ ǤĔ.ĔĔ ǤĔ.ĔĔ ǤĔ.ĔĔ ǤĔ.ĔĔ ǤĕƤĕĜĝƤĔĖĜ.ĔĔ CO N S T R U C T I O N GR A N T _õtΪ Ā tùĀIJ ŗĦıĬĪĪıĥĥĥ ĿtÜùĀõą ĀÁtÜŀAĒ‘õ¦ CÁùĀÁÜjIJ >ąÕĘ ħĥħĨ City Labor Reimbursement: $82,000January 20, 2026 L - 8 Stormwater Miscellaneous Grants/Contracts ntĀ‘Õ 2CA (ąÜ¦ùIJ ŗĨĬıĥĮĬİĥĥ Grant Source & ID: PSA-2025-41 Amount Gran Match/Loan Data: $37,097.00 for 2026-2028 / $13,643 (2026), $11,727 (2027), $11,727 (2028) ÁĀ4 tąÜ ÁÕ Aòòwtđª¦IJ Q ĀtŸªw ħĦı ħĥħĪfĀ‘ĀąùIJ Partially Signed ZoËÙÄr‚o™Ù ,;A 9¬oÝ‚Ö Héoٙ‚© SZAƴĖĔĖęƴyĕ aotals aas»Ư Vemaining % Completeillings to ateContractAmount 1 2026 Stormwater ILA Kitsap Outreach 2027 Stormwater ILA Kitsap Outreach $13,643.00 $0.00 $0.00 0% $11,727.00 $37,097.00 $0.00 $0.00 $0.00 $37,097.00 0% 2 3 2028 Stormwater ILA Kitsap Outreach $11,727.00 $0.00 $0.00 0% 0% ՑÕÕ‘Û tąÜĀ4 bt‘¦ ªò‘wĀÛªÜĀĽ/ª‘ÕĀl ſ /ąÛ‘Ü fªwđÁ ªùªò‘wĀÛªÜĀ Ľ _fAŅħĥħħŅĪĨ Date Agreement Authorized by City Council: August 16, 2022 A¸wªªÛªÜĀ 3òÁwªùIJ ª ªÛŸªw ĨĦı ħĥħī Zoٙ‚Ä»™™Ö™ÙÝ #™‚h Ëh¬£ËÙÄ AËŬoË٬Ť aas»Ư Vemaining % Completeillings to ateContractAmount 1 2022 Stream Water Quality Monitoring $14,000.00 $4,392.79 $9,607.21 31% $21,000.00 $21,000.00 $20,998.26 $17,261.08 $1.74 $3,738.92 82% 2 3 $21,000.00 $18,712.05 $2,287.95 100% 89% aotals $98,000.00 $61,364.18 $36,635.82 63% 5 $21,000.00 $0.00 $21,000.00 0% 4 2023 Stream Water Quality Monitoring 2024 Stream Water Quality Monitoring 2025 Stream Water Quality Monitoring 2026 Stream Water Quality Monitoring January 20, 2026 L - 9 Total Grant Funds: $500,000 Grant Source & ID: Ecology Water Quality Combined Funding Amount Grant Match/Loan Data: $TBD _roÎe t Cost: $TBD òòli ation: September 2025, Grant under ređiew ZoËÙÄr‚o™Ù A¬Ý™¾¾‚Å™ËéÝ $قÅoÝưËÅoقoÝ ;‚Å• AØé¬Ý¬o¬ËÅ #ËÙ q‚hh™û ٙ™» V™ÝoËقo¬ËÅ Total Grant Funds: $120,000 Grant Source & ID: WQSWCAP-2527-PoAnPW-00146 Amount Grant Match/Loan Data: $120,000 from FY2025-2027 Biennial Stormwater Capacity Grant _roÎe t Cost: JĽ Ēard Listing: De ember 2025 City Labor beimbursement: $120,000 ZoËÙÄr‚o™Ù ‚Ö‚¬oû $قÅo Total Grant Funds: $212,562 (Design) Grant Source & ID: Ecology - Water Quality Combined Funding Amount Grant Match/Loan Data: $TBD Applied: September 2025 _roÎe t Cost: $2,0ĭ6,200 ftatus: Grant snder beđiew City Labor Reimbursement: TBD QVĔyĕĚ ĕÝoƤ Ė Ƥ q‚hh™û Ǒ H‚» $ٙ™Å Ahh™û ;,ŕ January 20, 2026 L - 10 This project emptied and cleaned the #2 anaerobic digester at the City’s Wastewater Treatment Plant. The work included the removal of all liquids, solids and final cleaning within the anaerobic digested after City Staff vented, pumped down the level and opened it for contractor access. The engineers estimate for the volume of solids/grit and debris to be removed from digester II was approximately 80 tons. The actual amount discovered once the digester was pumped down was approximately 150 tons. Change order No. 1 in the amount of $31,500 was established to ensure sufficient funds were available to finish the removal of solids, clean the digester and start the disposal process. Change order No. 2 in the amount of $90,000 was approved by City Council in September 2025 to fund the remaining transportation, treatment, and disposal of the removed solids. Republic Services / CON-2023-26 Date Contract Approved by City Council: June 2025 Amount: $210,500.98 Total Project Cost: $332,000.98 This project is funded by the wastewater utility and is in the approved 2026- 2031 Capital Facilities Plan under project WW0122 in the amount of $300,000.00 Additional funding was identified in the 2025 Wastewater Treatment Plant Repair and Maintenance budget. WW0122 Digester Cleaning aËo‚hÝ SÙËg™o a¬oh™BËqƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™q¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo r‚Ýo™r‚o™Ù aٙ‚oęÅo Sh‚Åo ¬¤™Ýo™Ù h™‚ŬŤǤĖĕĔƤęĔĔƣĝĜ ǤĕĖĕƤęĔĔƣĔĔ ǤĔƣĔĔ ǤxxĖƤĔĔĔƣĝĜ ǤĖĕĔƤęĔĔƣĝĜ ǤĕĖĕƤęĔĔƣĔĔ ǤĔƣĔĔ ǤxxĖƤĔĔĔƣĝĜ CO N S T R U C T I O N FU N D I N G January 20, 2026 L - 11 WW0110 WWn_ªõ‘ĀÁäÜÕäĒªõ bªòՑ ªÛªÜĀ WW0110 WWn_fäÕÁ¦ùIÁėÁܸ ‘ùÁÜIÁėªõù Total Project Cost: $76,916.07 (MEC-2025-33) In September 2025, City Council awarded a contract to PDBlowers, Inc., of Gainesville, GA for this purchase. This project replaced outdated equipment with new aerators that will operate within normal operating ranges with higher efficiency and will produce less heat. Total Project Cost: $63, 633.30 (MEC-2025-34) In September 2025, City Council awarded a contract to Whitney Equipment Co., of Woodenville, WA for this purchase. The WWTP solids mixing basin uses aeration blowers to provide both dissolved oxygen to the bacteria and also provides mixing to keep the solids suspended in solution. Adding two mechanical mixers to the solids basin provide a low power, high efficiency option designed for wastewater treatment plant applications. Total Grant Funds: $158,407 Grant Source & ID: DOE WQPSNR-2021-PoAnPW-00035 Amount Grant Match/Loan Data: $158,407 from Water Quality Puget Sound Nutrient Reduction Department of Ecology No City match required Project Cost: $158,407 Award Listing: July 2022 City Labor Reimbursement: $15,000 FU N D I N G This project was listed as an unfunded Capital Facilities Plan Project (WW0110 Aeration Blower Replacement.) In September 2025, City Council approved to increase the Wastewater capital budget in the amount of $76,916.07 for the aeration blower purchase and $63,33.30 for the solids mixing basin mixers purchase. The City of Port Angeles was awarded an ecology grant that was scheduled to expire December 31, 2025. In order to use the funds prior to expiration, staff reached out and received Department of Ecology’s approval for both equipment purchases and the City will be reimbursed through this grant. January 20, 2026 L - 12 The Wastewater Treatment Plant burns methane gas in a boiler to provide heat for the plant digesters. The boiler requires diesel fuel for startup and upset conditions when methane is not available or insufficient to provide the necessary heat requirements. The 1,000 - gallon underground storage tank (UST) that supplies diesel to the boiler is a fiberglass shelled tank installed in 1993. This project decommissioned and removed the old UST as it does not meet current safety or environmental standards. A new 1,000 - gallon above ground storage tank (AST) will be installed with secondary containment, leak detection, and meet current code. In June 2025, City Council awarded a construction contract to Innovative Construction Solutions, of Woodinville, WA in the amount of $247,241.12 Innovative Construction Solutions / CON-2022-13 Date Contract Approved by City Council: June 2025 Amount: $247,241.12 Total Project Cost: $271,730.55 This project is funded by the wastewater utility and is in the approved 2026-2031 Capital Facilities Plan under project WW0523 in the amount of $300,000.00 WW0523 WWTP UST bemoval and beplacement aËo‚hÝ SÙËg™o a¬oh™BËqƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™q¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo HBƴĖĔĖĖƴĕė rraS ¬™Ý™h SZa V™Ö‚¬Ù ǤĖyěƤĖyĕƣĕĖ ǤĖyƤyĜĝƣyė ǤĔƣĔĔ ǤĖěĕƤěėĔƣęę ǤĖyěƤĖyĕƣĕĖ ǤĖyƤyĜĝƣyė ǤĔƣĔĔ ǤĖěĕƤěėĔƣęę CO N S T R U C T I O N FU N D I N G January 20, 2026 L - 13 This project rehabilitated over 2600 linear feet of sanitary sewer main installed along Francis Street more than 100 years ago and, over time, the clay, concrete and brick-lined pipes have lost structural integrity due to cracking, surface erosion and failed joints. If left untreated, groundwater can leak in, resulting in sinkholes and other serious problems. As part of this project, crews installed Cured In Place Pipe (CIPP) Lining to restore the structural integrity of the sanitary sewer main and reduce groundwater infiltration. This project is currently suspended until Spring 2026 when an additional 500 linear feet will be installed. In June 2025, City Council awarded a construction contract CON-2025-08 to SCI Infrastructure, LLC of SeaTac, WA in the amount of $749,102.41 SCI Infrastructure / CON-2025-08 Date Contract Approved by City Council: June 2025 Amount: $749,102.41 Total Project Cost: $826,478.04 This project is funded by the wastewater utility and is in the approved 2026-2031 Capital Facilities Plan under project WW0918 Neighborhood Sewer Rehabilitation in the amount of $750,000.00 WW0918 2025 Neighborhood Sewer Rehabilitation aËo‚hÝ SÙËg™o a¬oh™BËôƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™ô¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo HBƴĖĔĖęƴĔĜ B™¬¤©ŽËÙ©Ë˕ Z™r™Ù V™©‚Ž¬h¬o‚o¬ËÅ ǤěyĝƤĕĔĖƣyĕ ǤĔƣĔĔ ǤěěƤėěęƣĚė ǤĜĖĚƤyěĜƣĔy ǤĖyěƤĖyĕƣĕĖ ǤĔƣĔĔ ǤěěƤėěęƣĚė ǤĜĖĚƤyěĜƣĔy CO N S T R U C T I O N FU N D I N G January 20, 2026 L - 14 Total Grant Funds: $1,393,167 Grant Source & ID: Clallam County Opportunity Fund Amount Grant Match/Loan Data: $1,393,167 with $120,000 local government match. ProÎe t Cost: $5,292,ĩ92 AĒard Listin¸: De ember 202ĩ City Labor beimbursement: nD r‚Ýo™r‚o™Ù K¬Ý™¾¾‚Å™ËéÝ $قÅoÝưËÅoقoÝ Kennedy Jenks Consultants / PSA-2025-01 Date Agreement Authorized by City Council: January 21, 2025 Date Amendment 1 Authorized by City Council: September 2, 20 A¸reement ėòires: De ember 31, 2030 A Zoٙ™o ‚ݬŠ,ÄÖÙËô™Ä™ÅoÝ r‚Ýo™r‚o™Ù A˕™h¬Å¤ ZéÖÖËÙo Z™Ùô¬™Ý The “A” Street Wastewater Capacity Improvements project aims to add sewer capacity and improving resiliency to an area which contains 25% of the City utility customers. Facilitating wastewater utility expansion into the Western Urban Growth Area, expands capacity for future growth in work force housing and “Pursuing Housing for All” Land Use Code. This grant funding directly aligns with the Strategic Plan Focus Area #4 - Infrastructure Development, Maintenance, and Connectivity, and specifically furthers Goal A - Ensure adequate wastewater capacity is available for housing and commercial opportunities, Measure 2 - 100% A Street Basin Construction funded by 12/31/2026. aËo‚¾Ý a‚Ý»Ư ĖĔĖěĖĔĖĚĖĔĖę ǫ Aęŕƣ BËƣ ĕ ĕ rr ZûÝo™Ä Ał¾ûÝ¬Ý ¬Ù™o™• Z™Ùô¬™Ý rr K˕™¾ S֕‚o™Ý ǤĖęƤĔĔĔ ǤęƤĔĔĔ ǤĕĕěƤěĔĔ Ė ė ǁAǂ Zoٙ™o rr ™Ý¬¤Å Gû•Ù‚龬 K˕™¾¬Å¤ǤĜěƤěĔĔ ĖĔĖĜ ĖĔĖĝ ĖĔėĔ aËo‚¾ Ba ǤĕęƤĔĔĔ ǤęƤĔĔĔ ǤĖĔƤĔĔĔ ǤęƤĔĔĔ ǤĕęƤĔĔĔǤĕęƤĔĔĔ ǤęƤĔĔĔ ¬¾¾¬Å¤Ý oË ‚o™V™Ä‚¬Å¬Å¤ȃ ËÄÖ¾™o™ ǤĕęƤĔĔĔ ǤĕęƤĔĔĔ ǤĕĔĔƤĔĔĔ ǤĕėƤĕĖęƣĖęǤĜĚƤĜěyƣěę ĕėƣĕėȃ ǤęƤĔĔĔ ǤęƤĔĔĔ ǤėĔƤĔĔĔ ǤyƤėĝėƣĔĔ ǤĖęƤĚĔěƣĔĔ ĕyƣĚyȃ ǤĖĔƤĔĔĔ ǤĖĔƤĔĔĔ ǤĖĔƤĔĔĔ ǤĖĔƤĔĔĔ ǤĖĕěƤěĔĔ ǤĚěƤĝěěƣyĝ ǤĖĔƤĔĔĔ ėĕƣĖėȃ ęěƣęyȃǤėěƤĖyĔƣěĚǤęĔƤyęĝƣĖyǤĜěƤěĔĔ January 20, 2026 L - 15 The general scope of this project was to replace a failing Altitude Valve at Jones Street Reservoir. The Altitude Valve maintains the desired high-water level in the reservoir tank, while maintaining a minimum pressure on the supply side of the valve. Failure of the altitude valve would cause a system wide reduction in water pressure and fire flow. Project site work was substantially completed in October 2025. The new altitude valve is operational and operating as intended. Final site stabilization has been performed and project is now in close-out status. In April 2025, City Council awarded a construction contract to 2 Grade LLC of Port Angeles, WA. 2 Grade LLC / CON-2025-10 Date Contract Approved by City Council: April 2025 Amount: $257,557.21 Total Project Cost: $267,608.81 This project is funded by the water utility and is in the approved 2026-2031 Capital Facilities Plan under project WW0125 Jones Street Reservoir Valve Replacement in the amount of $300,000.00 WT0125 Jones Street Reservoir Valve Replacement aËo‚hÝ SÙËg™o a¬oh™BËôƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™ô¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo HBƴĖĔĖęƴĕĔ 7ËÅ™Ý Zoٙ™o V™Ý™Ùôˬ٠q‚hô™ ǤĖęěƤęęěƣĖĕ ǤĔƣĔĔ ǤĕĔƤĔęĕƣĚĔ ǤĖĚěƤĚĔĜƣĜĕ ǤĖęěƤęęěƣĖĕ ǤĔƣĔĔ ǤĕĔƤĔęĕƣĚĔ ǤĖĚěƤĚĔĜƣĜĕ CO N S T R U C T I O N FU N D I N G January 20, 2026 L - 16 The industrial surface water intake structure enables the City to collect and distribute Elwha river water to the Lower Elwha Klallam Tribe (LEKT) fish hatchery, the Washington Department of Fish and Wildlife (WDFW) fish rearing channel, the industrial waterline intake (currently idle), and provides a surface water backup water supply for the City of Port Angels Water treatment plant that provides potable drinking water to the community. A gantry crane equipped with a hydraulicly activated arm is used by operation crews to clear debris, rocks, and sediment from the Elwha River intake structure bar screen after high river flow events. This project includes painting, aligning and overhauling the gantry crane and hydraulic system to ensure reliable, safe, and environmentally sound operation. Roglin’s Inc. / CON-2024-28 Date Contract Approved by City Council: March 2025 Amount: $314,940.00 Total Project Cost: $314,940.00 This project is funded by the Elwha Facilities Operations and Maintenance budget and is in the approved 2026-2031 Capital Facilities Plan under project WT0325 Elwha Intake Structure Hydaulic System Maintenance in the amount of $325,000.00 WT0325 Elwha Intake Structure Hydraulic System Maintenance aËo‚hÝ SÙËg™o a¬oh™BËqƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™q¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo HBƴĖĔĖyƴĖĜ hr©‚ ,Åo‚»™ )û•Ù‚éh¬ ZûÝo™Ä K‚¬Åo ǤėĕyƤĝyĔƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤėĕyƤĝyĔƣĔĔ ǤėĕyƤĝyĔƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤėĕyƤĝyĔƣĔĔ CO N S T R U C T I O N FU N D I N G January 20, 2026 L - 17 Jacobs Engineering Group, Inc. / PSA-2019-21 Date Agreement Authorized by City Council: November 19, 2019 Date Amendment 1 Authorized by City Manager: December 8, 2020 Date Amendment 2 Authorized by City Manager: December 7, 2021 Date Amendment 3 Authorized by City Council: September 6, 2022 Date Amendment 4 Authorized by City Manager: December 11, 2023 Water Miscellaneous Grants/Contracts Jacobs Engineering Group Inc. / PSA-2023-01 Date Agreement Authorized by City Council: June 20,2023 Date Amendment 1 Authorized by City Manager: December 5, 2024 Date Amendment 2 Authorized by City Manager: December 8, 2025 Agreement Expires: December 31, 2026 Elwha Facility Engineering Support Water Treatment Plant Facility Assessment ZAA a‚Ý»Ư V™Ä‚¬Å¬Å¤ȃ ËÄÖ¾™o™¬¾¾¬Å¤Ý oË ‚o™ËÅoقo AÄËéÅo ĕ ‚o‚ ˾¾™o¬ËÅ Sٙ¾¬Ä¬Å‚Ùû ™ô™¾ËÖęÅo Ë£ Zoقo™¤¬™Ý ǤĕxƤĚĘxƣĔĔ ǤxƤĘĖĘƣĚĔ ǤĕĘxƣĘĔ ĝĚȃ ǤěƤěĝĕƣĔĔ ǤĔƣĔĔ ǤĜƤĘęĕƣĜě ǤĔƣĔĔ ƴǤĚĚĔƣĜě ǤĔƣĔĔ Ĕȃ Ė x Z¬o™ q¬Ý¬o Ǒ S¾‚ÅŬŤ rËٻݩËÖ ǤĕĘƤĕĜěƣěĔ ǤĕĘƤĕĜĚƣěĕ ǤĔƣĝĝ ĕĔĜȃ ĕĔĔȃ a™©Å¬‚¾ AÝݬÝo‚ŏ™ư¬Ù™o™• Z™Ùô¬™Ý ę Øé¬ÖęÅo ZéÙÖ¾éÝ Ǒ #‚¬¾¬oû ™ËÄĬÝݬËŬŤ V‚Åřû r™¾¾ ǤĕĔƤĔĔĔƣĔĔ ǤĔƣĔĔ ǤĕĔƤĔĔĔ Ĕȃ ǤĚĘƤĚęĘƣĖĖ ǤĘĕƤęĜĔƣĕĜ ǤĚěƤĘĖĜƣĜĝ ǤĜƤĜĜĖƣxę ǤƴĖƤěěĘƣĚě ǤxĖƤĚĝěƣĜx Ėĕȃ ĝ ĕĔ SÙËg™o A‚Å‚¤™Ä™Åo ǤĖĕƤĕěĜƣĔĔ ǤĖĔƤĚěĔƣĝĜ ǤęĔĚƣĔĖ ĕĔĘȃ ĝĜȃ Ę ;™ô™¾ Ë£ Z™Ùô¬™ ,ŕéÝoÙ¬‚¾ r‚o™Ù ZéÖÖ¾û ǤĕęƤĔĔĔƣĔĔ ǤĜƤĚxĜƣxĖ ǤĚƤxĚĕƣĚĜ ęĜȃ a™©Å¬‚¾ AÝݬÝo‚ŏ™ư¬Ù™o™• Z™Ùô¬™Ý Ě ¾r©‚ ZéÙ£‚™ r‚o™Ù ,Åo‚»™ ƹrZ,ƺ #¬Ý© ZÙ™™Å ZoÙéoéٙ ǤĜƤĘĕĝƣĜĖ ǤĜƤĘĕĝƣĜĖ ǤĔƣĔĔ ĕĔĔȃ ǤĕĘĝƤĚĝĚƣĔĔ ǤĔƣĔĔ ǤĕxęƤěĔęƣęx ǤĔƣĔĔ ǤĕxƤĝĝĔƣĘě ǤĔƣĔĔ Ĕȃ ě Ĝ ££¾é™Åo ¬ÝoÙ¬Žéo¬ËÅ ZoÙéoéٙ ƹZƺ ǤĚĚƤxĝĖƣĜx ǤĜĔƤĖěĝƣĜę ƴǤĕxƤĜĜěƣĔĖ ĝĕȃ ĕĖĕȃ ĕĖ aËo‚¾Ý ǤĘĔĖƤĘĚěƣěę ǤxęĚƤĔĜĜƣĝĖ ǤĘĚƤxěĜƣĜx ĜĜȃ Date Amendment 5 Authorized by City Manager: November 18, 2024 Date Amendment 6 Authorized by City Manager: December 01, 2025 Agreement Expires: December 31, 2026 ĕĕ ĕĕ aËo‚¾Ý a‚Ý»V™Ä‚¬Å¬Å¤ȃ ËÄÖ¾™o™¬¾¾¬Å¤Ý oË ‚o™ËÅoقo AÄËéÅo r‚o™Ù aٙ‚oęÅo S¾‚Åo #‚¬¾¬oû AÝݙÝÝęÅo ǤĖĖĔƤĔĔĔ ǤĕĕĚƤĜĔĚƣĔĖ ǤĕĔxƤĕĝxƣĝĜ ęxȃ ǤĖĖĔƤĔĔĔƣĔĔ ǤĕĕĚƤĜĔĚƣĔĖ ǤĕĔxƤĕĝxƣĝĜ ęxȃ ĕ January 20, 2026 L - 18 Water Miscellaneous Grants/Contracts Water System Plan Update Agreement 2024 Transmission Main Replacement and Directional Boring Water System Modeling Support Services % Complete Jacobs Engineering Group Inc. / PSA-2023-42 Date Agreement Authorized by City Council: January 16, 2024 Date Amendment Authorized by City Manager: July 15, 2025 Agreement Expires: July 31, 2026 Totals Task#Remaining % CompleteBillings to DateContractAmount 1 Water System Plan Update $96,055.00 $20,985.41 $75,069.59 22% $96,055.00 $20,985.41 $75,069.59 22% Jacobs Engineering Group Inc. / PSA-2024-13 Date Agreement Authorized by City Council: December 17, 2024 Agreement Expires: December 31, 2026 Totals Task#Remaining % CompleteBillings to DateContractAmount 1 Transmission Main Replacement & Directional Boring $679,028.00 $31,616.38 $647,411.62 5% $679,028.00 $31,616.38 $647,411.62 5% RH2 Engineering Inc. / PSA-2019-11 Date Agreement Authorized by City Manager: June 3, 2019 Date Amendment 1 Authorized by City Council: December 17, 2019 Date Amendment 2 Authorized by City Manager: November 20, 2020 Date Amendment 3 Authorized by City Manager: December 27, 2021 Date Amendment 4 Authorized by City Council: November 15, 2022 Date Amendment 5 Authorized by City Council: December 17 2024 Agreement Expires: December 31, 2026 % Complete Amend #1 Task 1 Unidirectional Flushing Program Task#Remaining % CompleteBillings to DateContractAmount 1 Water System Model Calibration $22,000.00 $23,971.9 -$1,971.79 109% $43,525.00 $47,323.64 -$3,798.64 109% Totals 4 Amend #1 Task 2 Directed Services $16,475.00 $11,898.08 $4,576.92 72% $199,000.00 $105,044.59 $93,955.41 53% 2 3 5 Directed Services Amend #5 Time Extension & Budget Income $32,000.00 $85,000.00 $21,851.08 $10,148.92 $85,000.00 68% 0%January 20, 2026 L - 19 Solid Waste Miscellaneous Grants/Contracts Landfill Post-Closure Consulting Services UAS Methane Monitoring DBA as Aspect Consultant Agreement / PSA-2017-05 Date Agreement Authorized by City Council: June 20, 2017 Date Amendment 1 Authorized by City Council: November 15, 2022 Date Amendment 2 Approved by City Manager: December 9, 2025 Agreement Expires: December 31, 2026 Tas»Ư 2019ƴ2020Original2018ƴ2019Original 2017ƴ2018Original 1 Monitoring & Reporting $115,000.00 2020ƴ2021Original 2021ƴ2022Original 2023ƴ2025Amend 1 2026 Amend 2 $120,750.00 $133,127.00$161,840.00 illingsto ate 2025Remaining %Complete $139,783.00 $181,470.67 $0.00 $741,178.87 $110,791.80 87% $851,970.67Total Original Contract + Amendments 1 & 2 NTE ntĀ‘Õ )õ‘ÜĀ (ąÜ¦ùIJ ŗĩĬıĥĥĥ)õ‘ÜĀ Utąõ ª ſ 2IJ ªò‘õĀÛªÜĀ t·  tÕt¸ĘAÛtąÜĀ )õ‘ÜĀ I‘Ā lĽCt‘Ü ‘Ā‘IJ ŗĩĬıĥĥĥijJt Õt ‘Õ ¸tđªõÜÛªÜĀ ۑĀ l õªvąÁõª¦ _õtΪ Ā tùĀIJ ŗīĩıĥĥĥAĒ‘õ¦ª¦IJ ª ªÛŸªõ ħĥħĩUĀ‘ĀąùIJ )õ‘ÜĀ A  ªòĀ‘Ü ª ‘òòõtđª¦ŸĘ ÁĀĘ tąÜ ÁÕ ª ªÛŸªõ ħĥħĩİ €tõÒQÜŅ¸tÁܸ UAS Methane Monitoring is supported with funding form Washington’s Climate Commitment Act. The CCA supports Washington’s climate action efforts by putting cap-and-invest dollars to work reducing climate pollution, creating jobs, and improving public health. Information about the CCA is available at www.climate.wa.gov January 20, 2026 L - 20 CON-2025-04 ÜÜą‘ÕnõªªnõÁÛÛÁܸ Total Project Cost: Not-to-Exceed $60,000.00 In November 2025, City Council awarded a maintenance contract to Pacific Pole Inspection of Kelso, WA in a not to exceed amount of $60,000 to inspect and test approximately 10% of the City’s wooden poles for internal decay each year and cycle through the system every 10 years. ¬¾¾¬Å¤ÝäË‚ä™ËÅäقä ÄËéÅä CON-2025-03 ÜÜą‘Õ_äÕªnªùĀÁܸ Total Project Cost: Not-to-Exceed $136,500.00 In October 2025, City Council awarded a maintenance contract to Xylem I, LLC of Snohomish, WA in a not to exceed value of $136,500 to trim trees growing into or near power lines that can be hazardous to public safety, cause downed power lines during storms, and create fire risks. This City conducts annual inspections of trees growing near power lines to ensure they are a safe distance away. FU N D I N G FU N D I N G aËä‚¾Ý SÙ˸™äa¬ä¾™BËôƣäË™ƣ ©‚Ť™Hٕ™ÙÝ ËÅäقäǑV™ô¬Ý™• ÄËéÅäÝSÙ¬ËÙ©‚Ť™ Hٕ™ÙÝ ËÅäقä ÄËéÅä HBƴĖĔĖęƴĔĘaٙ™aÙ¬ÄĬŤƴf䬾¬äû#éŕ¬Å¤ǤĕėĚƤęĔĔƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤĕėĚƤęĔĔƣĔĔ ǤĕėĚƤęĔĔƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤĕėĚƤęĔĔƣĔĔ aËä‚¾Ý SÙ˸™äa¬ä¾™BËôƣäË™ƣ ©‚Ť™Hٕ™ÙÝ ËÅäقäǑV™ô¬Ý™• ÄËéÅäÝSÙ¬ËÙ©‚Ť™ Hٕ™ÙÝ ËÅäقä ÄËéÅä HBƴĖĔĖęƴĔėS˾™a™Ýä¬Å¤ƴf䬾¬äû#éŕ™•ǤĚĔƤĔĔĔƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤĚĔƤĔĔĔƣĔĔ ǤĚĔƤĔĔĔƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤĚĔƤĔĔĔƣĔĔ January 20, 2026 L - 21 Light-Ops Miscellaneous Grants/Contracts CL0322 DOT EV Charging Stations Total Grant Funds: $2,103,611 Grant Source & ID: DOT Amount Grant Match/Loan Data: DOT $2,103,611.20/minimum City Match $500,000 Awarded: January 2024 Project Cost: $2,629,514.00 Status: Grant Acceptance approved by City Council September 2024 City Labor Reimbursement: $240,000 ntĀ‘Õ )õ‘ÜĀ (ąÜ¦ùIJ ŗħħıĪĥĥ)õ‘ÜĀ ftąõ ª ſ 2IJ €QÛtąÜĀ )õ‘ÜĀ I‘Ā ¾ĽCt‘Ü ‘Ā‘IJ ŗħħıĪĥĥĥÁĀĘ I‘Ā ¾IJ Jt ÁĀĘ I‘Ā ¾Ē‘õ¦ª¦IJ >‘Üą‘õĘ ħĥħĩ _õtΪ Ā tùĀIJ ŗħħıĪĥĥfĀ‘ĀąùIJ )õ‘ÜĀ   ªòĀ‘Ü ª ‘òòõtđª¦ŸĘ ÁĀĘ tąÜ ÁÕ fªòĀªÛŸªõ ħĥħĩÁĀĘ C‘Ÿtõ bªÁ۟ąõùªÛªÜĀIJ n EV Charging Stations The City was awarded state grant funding to install two Electric Vehicle (EV) Charging stations at a City facility. Grant negotiations are complete and City Council approved the contract in September 2024. Construction is on-going. The City was awarded federal grant funding to install Electric Vehicle (EV) Charging stations throughout City owned property. Grant negotiations are complete and City Council approved the contract in September 2024. Staff are waiting for approval of the NEPA documents on a federal level. Ordering of equipment will commence once approved. January 20, 2026 L - 22 #New NTEAmount nlÁù òwtΪ Ā Ē‘ù ùą  ªùù·ąÕÕĘ ÁÜùĀ‘ÕÕª¦ ÁÜ ‘  tw¦‘Ü ª ĒÁĀl  tÜĀw‘ Ā ùòª Á·Á ‘ĀÁtÜù ÁÜ Õą¦ÁÜjIJ 2ÜùĀ‘ÕÕ Cª‘¦ _ª¦ªùĀwÁ‘Ü2ÜĀªwđ‘Õ ĿC_2ŀ ĀÁÛÁÜj ‘ܦ C_2 òwtĀª ĀÁtÜ  ‘ò‘ŸÁÕÁĀĘı sòjw‘¦ª  twwÁ¦tw ÕªđªÕ ùÁjÜ‘Õ  ttw¦ÁܑĀÁtÜ ‘ܦ  tÛÛąÜÁ ‘ĀÁtÜùıÁÜùĀ‘ÕÕ đªlÁ Õª ¦ªĀª ĀÁtÜ ‘ܦ Ÿ‘ĀĀªwĘ Ÿ‘ Òąò Āt wª¦ą ª Ālª ÜąÛŸªw t·  tÕÕÁùÁtÜùı ÁÜùĀ‘ÕÕ īĨ ܪĒ AA w‘Ûòùı ‘ܦ Ālª tÛòÕªĀª¦ òwtΪ Ā wªùąÕĀù ÁÜ òwtjw‘Û‘ŸÕª ùÁjܑÕù Āl‘Ā  ‘Ü Ÿª ‘¦ÎąùĀª¦ ‘ܦ Ût¦Á·Áª¦ Āt ŸªùĀ ‘¦¦wªùù Ālª ܪª¦ù t·òª¦ªùĀwÁ‘Üùı  Ę ÕÁùĀùı ‘ܦ đªlÁ ąÕ‘w Āw‘··Á İ ÁĀĘ tąÜ ÁÕ ‘  ªòĀª¦ ĀlÁù ‘ù  tÛòÕªĀª JtđªÛŸªw ħĥħĪİ _‘w‘ÛªĀwÁ3 Ľ _fAŅħĥħħŅħĩ Date Agreement Approved by City Council: July 19, 2022 Date Amendment 1 Approved by City Council: March 7, 2023 Date Amendment 2 Approved by City Manager: December 28, 2023 TITAN arthwork / Construction Contract TR0120‘Āª tÜĀw‘ Ā Aòòwtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ (ªŸwą‘wĘ ħĥħĩAÛtąÜĀIJ ŗĩıĦĮĬıĬĮĪİĥĥ Total Grant Funds: $5,654,520)w‘ÜĀ ftąw ª ſ 2IJ €fQnĽ(/€A ļCAŅĦĥħīĪAÛtąÜĀ )w‘ÜĀ I‘Ā lĽCt‘Ü ‘Ā‘IJ /f2_IJ ŗīīĪıĥĥĥ ĿªùÁjÜŀı ŗĦĥıĥĥĥ Ŀb€ŀıŗĩıĮĬĮıĪħĥ ĿtÜùĀwą ĀÁtÜŀ nbĥĦħĥ fÁjÜ‘Õ tÜĀwtÕÕªw sòjw‘¦ªù Totals Task % CompleteAmend 1, 2 & 3Add Funds ContractAmount 1 TRĔ12Ĕ ƴ Zignal Controller fpgrades PZ&E Construction Aanagement Zervices TR13ĝĝ ƴ Tra££ic Zignal ,nterconnection Ǥ221,ĝĜĔ.Ĕ2 ǤĚĚě,33ę.3ě ǤĜĜĝ,31ę.3ĝ ĝ2.ĚĔ% ǤĘ1,2ěě.1Ě Ǥ2Ě3,2ęě.1Ĝ ǤĔ.ĔĔ ǤĚĚě,33ę.3ě ǤĘ1,2ěě.1Ě Ǥĝ3Ĕ,ęĝ2.3ě ĝ1.Ĕ1% CO N S U L T A N T Totals Project Title Nov. to Dec.Change Orders Contract & RevisedAmountsPrior ChangeOrders ContractAmount TRĔ12Ĕ Zignal Controller fpgrades ǤĘ,1ĝě,ěĝę.ĔĔ Ǥ3ĝĝ,ĝĔ2.ĜĚ ǤĔ.ĔĔ ǤĘ,ęĝě,Ěĝě.ĜĚ ǤĔ.ĔĔ ǤĘ,1ĝě,ěĝę.ĔĔ ǤĔ.ĔĔ Ǥ3ĝĝ,ĝĔ2.ĜĚ ǤĔ.ĔĔ ǤĘ,ęĝě,Ěĝě.ĜĚ CO N S T R U C T I O N GR A N T _wtΪ Ā tùĀIJ ŗĪıīĪĩıĪħĥAĒ‘w¦ CÁùĀÁÜjIJ ª ªÛŸªw ħĥħĥ City Labor Reimbursement: $132,000 ęĚ.ĝ2% Billings toDate Remaining ǤĚę,ĜĘ3.22ǤĜ23,Ęě2.1ě Ǥ23,Ęĝ3.ě3 ǤĜĘĚ,ĝĚę.ĝĔ ǤĜ3,Ě2Ě.Ěę Ǥ1ě,ěĜ3.Ę3 ‘Āª A۪ܦ۪ÜĀ Ĩ Aòòwtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ (ªŸwą‘wĘ īı ħĥħĩ ‘Āª A۪ܦ۪ÜĀ ĩ Aòòwtđª¦ ŸĘ ÁĀĘ I‘Ü‘jªwIJ >ąÕĘ Ĩĥı ħĥħĩ‘Āª A۪ܦ۪ÜĀ Ī AąĀltwÁ𪦠ŸĘ ÁĀĘ I‘Ü‘jªwIJ AòwÁÕ Ħĩı ħĥħĪ Agreement ėpires: June 30, 2026 January 20, 2026 L - 23 This project successfully completed a 2-inch asphalt mill and overlay of Marine Drive from Hill Street to Mill Bridge to correct surface conditions and upgraded existing sidewalk curb ramps to meet ADA standards. This project is being presented to City Council for final acceptance January 20, 2026. Lakeside Industries / Construction Contract TR0324 Date Contract Approved by City Council: June 2025 Amount: $644,877.00 Total Grant Funds: $590,439.00 Grant Source & ID: TIB Amount Grant Match/Loan Data: $531,248; $177,082 minimum local match TR0324 Marine Drive Paving ĿHill to Mill Bridgeŀ aËo‚hÝ SÙËg™o a¬oh™BËqƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™q¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo aVĔxĖy A‚٬ř Ù¬q™ S‚q¬Å¤ ƹG¬hh oË A¬hhƺ ǤĚyyƤĜěěƣĔĔ ǤĔƣĔĔ ǤĔƣĔĔ ǤĚyyƤĜěěƣĔĔ ǤĚyyƤĜěěƣĔĔ ǤĔƤĔĔ ǤĔƣĔĔ ǤĚyyƤĜěěƣĔĔ CO N S T R U C T I O N GR A N T Project Cost: $708,330 Award Listing: November 2024 City Labor Reimbursement: $48,296 This project is in the approved 2026-2031 Capital Facilities Plan as project TR0324 Marine Drive Paving. This project is grant funded with a required local match. January 20, 2026 L - 24 This project successfully included a 2-inch asphalt mill and fill overlay of 8 Street from Lincoln Street to the Tumwater Bridge, Reconfigure the existing road width to add two bike lanes connecting the Lincoln Street safety project and the current bike lanes on the 8 Street Bridges, bridge deck treatment of both 8 Street bridges, cleaning and sealing the deck, and replacement of existing sidewalk curb ramps and pedestrian signals to meet ADA standards as required. This project is being presented to City Council for final acceptance January 20, 2025. th th th TITAN Earthwork / CON-2024-05 Date Contract Approved by City Council: December 2024 Amount: $2,117,692.00 Total Grant Funds: $1,684,019 Grant Source & ID: TIB 8-2-150(010)-1 Amount Grant Match/Loan Data: TIB $1,684,019; $680,000 local agency match TR0119 8 Street Pavingth (Lincoln to A Street) aËo‚hÝ SÙËg™o a¬oh™BËqƣ oË ™ƣ ©‚Ť™ Hٕ™ÙÝ ËÅoقo Ǒ V™q¬Ý™• AÄËéÅoÝSÙ¬ËÙ ©‚Ť™ Hٕ™ÙÝ ËÅoقo AÄËéÅo HBƴĖĔĖyƴĔę Ĝ Zoٙ™o S‚q¬Å¤ ƹ;¬ÅËhÅ oË A Zoƣƺo©ǤĖƤĕĕěƤĚĝĖƣĔĔ ǤĔƣĔĔ ƴǤĝƤxĝĖƣěę ǤĖƤĕĔĜƤĖĝĝƣĖę ǤĖƤĕĕěƤĚĝĖƣĔĔ ǤĔƤĔĔ ƴǤĝƤxĝĖƣěę ǤĖƤĕĔĜƤĖĝĝƣĖę CO N S T R U C T I O N GR A N T Project Cost: $2,364,019 Award Listing: December 2022 City Labor Reimbursement: $23,069 This project is in the approved 2026-2031 Capital Facilities Plan as project TR0119 8 Street Paving (Lincoln to A Street)th This project is grant funded with a required local match. January 20, 2026 L - 25 % Complete# nlÁù òõtΪ Ā ĒÁÕÕ ‘¦¦õªùù òª¦ªùĀõÁ‘Ü ù‘·ªĀĘ tÜ (õtÜĀ fĀõªªĀ ‘ܦ (ÁõùĀ fĀõªªĀİ 2Ü ħĥħĪı ùĀ‘··  tܦą Āª¦ ‘Ü tÜÕÁܪ ùąõđªĘõªôąªùĀÁܸ õªùÁ¦ªÜĀù Āt ‘¦¦õªùù ùÁ¸ÜÁ·Á ‘ÜĀ  õtùùÁܸ l‘ğ‘õ¦ù ‘Õtܸ Ālª (ÁõùĀ ‘ܦ (õtÜĀ fĀõªªĀ  tõõÁ¦tõİ A  õtùùÁܸùĀą¦Ę Ē‘ù ‘Õùt  tܦą Āª¦ ‘Õtܸ Ālª  tõõÁ¦tõù t· ‘ùĀ (ÁõùĀ fĀõªªĀı (õtÜĀ fĀõªªĀı ‘ܦ I‘õÁܪ õÁđªİ Á¸lĀ Õt ‘ĀÁtÜùl‘đª ŸªªÜ Á¦ªÜĀÁ·Áª¦ ĒÁĀl ÜtĀª¦ ù‘·ªĀĘ  tÜ ªõÜù ĒÁĀl ‘ lÁùĀtõĘ t·  õ‘ùlªù ‘ù ĒªÕÕ ‘ù ·ąĀąõª õÁùÒ t·  õ‘ùlªù ‘Ā ۑõÒª¦‘ܦ ąÜۑõÒª¦  õtùùÁܸùİ tÜùĀõą ĀÁtÜ Áù ‘ÜĀÁ Áò‘Āª¦ Āt Ÿª¸ÁÜ ħĥħīİ Parametrix, Inc. / PSA-2024-16‘Āª A¸õªªÛªÜĀ Aòòõtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ fªòĀªÛŸªõ ĦĬı ħĥħĩ‘Āª A۪ܦ۪ÜĀ Ħ AąĀltõÁ𪦠ŸĘ ÁĀĘ I‘Ü‘¸ªõIJ ª ªÛŸªõ Ħīı ħĥħĪ Agreement Expires: December 31, 2026 Total Grant Funds: $1,280,000)õ‘ÜĀ ftąõ ª ſ 2IJ €fQnĽ(/€AAÛtąÜĀ )õ‘ÜĀ I‘Ā lĽCt‘Ü ‘Ā‘IJ /f2_IJ ŗħĩĦıĥĥĥ ĿªùÁ¸Üŀı ŗĦĥĥıĥĥĥ Ŀb€ŀıŗĮĨĮıĥĥĥ ĿtÜùĀõą ĀÁtÜŀİ Jt Õt ‘Õ ۑĀ l õªôąÁõª¦İ nbĥħħĥ (ÁõùĀĽ(õtÜĀ _ª¦ªùĀõÁ‘Ü Ül‘Ü ªÛªÜĀù CO N S U L T A N T GR A N T _õtΪ Ā tùĀIJ ŗĦıħĭĥıĥĥĥAĒ‘õ¦ CÁùĀÁܸIJ fªòĀªÛŸªõ ħĥħħ City Labor Reimbursement: $75,370 nlÁù òõtΪ Ā Áù ÁÜ Ālª ‘òòõtđª¦ ħĥħīŅħĥĨĦ ‘òÁĀ‘Õ (‘ ÁÕÁĀÁªù _Õ‘Ü ‘ܦnõ‘ÜùòtõĀ‘ĀÁtÜ 2ÛòõtđªÛªÜĀ _Õ‘Ü ‘ù òõtΪ Ā nbĥħħĥ (ÁõùĀĽ(õtÜĀ _ª¦ªùĀõÁ‘Ü Ül‘Ü ªÛªÜĀùİ nlÁù òõtΪ Ā Áù ¸õ‘ÜĀ ·ąÜ¦ª¦ ĒÁĀl Üt õªôąÁõª¦ Õt ‘Õ ۑĀ lİ Totals Task Remaining % CompleteBillings to DateContractAmount ĕ Sro¸ect Aanagement ƴ #irstư#ront Ǒ Aarine Drƣ Se• ǤĖėĔƤĔĕĝƣĚĚ ǤĕěĚƤĜĖęƣĔĜ ǤęėƤĕĝĘƣęĜ ěĚƣĜě% ǤĖėĔƤĔĕĝƣĚĚ ǤĕěĚƤĜĖęƣĔĜ ǤęėƤĕĝĘƣęĜ ěĚƣĜě% January 20, 2026 L - 26 % Complete# nlÁù òõtΪ Ā ªėĀªÜ¦ù ·õtÛ Ħĥ ‘ܦ 2 fĀõªªĀ ĒªùĀ Āt ĭ ‘ܦ A fĀõªªĀı ‘ܦ òõtđÁ¦ªù ‘ đÁĀ‘Õ  tÜܪ ĀÁtÜ t· ªėÁùĀÁܸ ŸÁÒª ·‘ ÁÕÁĀÁªù tÜ Ħĥ fĀõªªĀ ĒªùĀ t· 2 fĀõªªĀ Āt ŸÁÒª Ցܪù tÜ Ālª ĭ fĀõªªĀ ŸõÁ¦¸ªùİ nlª òõtΪ Ā ªÕªÛªÜĀù ĒÁÕÕ ÁÜ Õą¦ª  tÜđªõùÁtÜ t· Ħĥ fĀõªªĀ ‘ܦA fĀõªªĀ ·tõ ùĀõªªĀ ŸÁ Ę Õª  l‘ÜܪÕÁğ‘ĀÁtÜ ‘ܦ ù‘·ªĀĘ ÁÛòõtđªÛªÜĀù Āt ÁÜ tõòtõ‘Āª ŸÁ Ę Õª Ē‘Ę·ÁܦÁܸ ùÁ¸ÜùĽÛ‘õÒÁܸùı Ÿą··ªõª¦‘ܦ ÜtÜŅŸą··ªõª¦ ŸÁÒª Ցܪùı ĀĒtŅĒ‘Ę òõtĀª Āª¦ ŸÁÒª Ցܪùı Āõ‘··Á  ¦ÁđªõĀªõùı ò‘õÒÁܸ õªÛtđ‘Õı đªlÁ Õª Ցܪ ĒÁ¦Āl õª¦ą ĀÁtÜı Ûª¦Á‘Õ l‘ÜܪÕÁğ‘ĀÁtÜĽĀąõÜ õªùĀõÁ ĀÁtÜùı õª Ā‘ܸąÕ‘õ õ‘òÁ¦ ·Õ‘ùlÁܸ Ÿª‘ tÜùı ܪĒ ۑõÒª¦  õtùùĒ‘ÕÒı ùĀtò ùÁ¸Üı õª¦ą ª¦  ąõŸ õ‘¦ÁÁıÛª¦Á‘Ü õª·ą¸ª ÁùՑܦı ‘ܦ  ąõŸ ªėĀªÜùÁtÜùĽŸąÕŸŅtąĀùİ ąõÁܸ Ālª ¦ªùÁ¸Ü òl‘ùªı ùĀ‘··  tÛòÕªĀª¦ òąŸÕÁ  tąĀõª‘ l đÁ‘ tÜÕÁܪùąõđªĘİ Āl Āl Āl Āl Āl TRANSPO GROUP USA, Inc. / PSA-2025-14‘Āª A¸õªªÛªÜĀ Aòòõtđª¦ ŸĘ ÁĀĘ tąÜ ÁÕIJ >ąÕĘ ĦĪı ħĥħĪ Agreement Expires: June 30, 2026 Total Grant Funds: $1,959,000)õ‘ÜĀ ftąõ ª ſ 2IJ QnAÛtąÜĀ )õ‘ÜĀ I‘Ā lĽCt‘Ü ‘Ā‘IJ ŗĦıĮĪĮıĥĥĥ nbĥĨĦĭ Ħĥ fĀõªªĀ ÁÒª Āl tąÕªđ‘õ¦ CO N S U L T A N T GR A N T _õtΪ Ā tùĀIJ ŗĦıĮĪĮıĥĥĥAĒ‘õ¦ CÁùĀÁܸIJ >ąÜª ħĥħĨ City Labor Reimbursement: $145,000 nlÁù òõtΪ Ā Áù ÁÜ Ālª ‘òòõtđª¦ ħĥħīŅħĥĨĦ ‘òÁĀ‘Õ (‘ ÁÕÁĀÁªù _Õ‘Ü ‘ܦnõ‘ÜùòtõĀ‘ĀÁtÜ 2ÛòõtđªÛªÜĀ _Õ‘Ü ‘ù òõtΪ Ā nbĥĨĦĭ ĦĥĀl fĀõªªĀ ÁÒªtąÕªđ‘õ¦ ſ ĭ ſ A fĀõªªĀ _õtĀª Āª¦ 2ÜĀªõùª ĀÁtÜ _õtΪ Āİ Āl nlÁù òõtΪ Ā Áù ¸õ‘ÜĀ ·ąÜ¦ª¦ ĒÁĀl Üt õªôąÁõª¦ Õt ‘Õ ۑĀ lİ Totals Task Remaining % CompleteBillings to DateContractAmount ĕ ngineering Ǒ Design support £or Žicûcleƴ£ocuse• improôements ǤĕĝĝƤĜĔĔƣĔĔ ǤĘĔƤĖĔęƣĔĔ ǤĕęĝƤęĝęƣĔĔ ĖĔƣĕĖ% ǤĕĝĝƤĜĔĔƣĔĔ ǤĘĔƤĖĔęƣĔĔ ǤĕęĝƤęĝęƣĔĔ ĖĔƣĕĖ% January 20, 2026 L - 27 Total Grant Funds: $2,000,000 Grant Source & ID: FHWA Amount Grant Match/Loan Data: $2,000,000 from WA Federal Lands Access Program; 13.5% local government match. _roΪ t ost: $3,Į73,000 Ēard CÁstÁn¸: >unª 2018 aقÅÝÖËÙo‚o¬ËÅ A¬Ý™hh‚Å™ËéÝ $قÅoÝưËÅoقoÝ Race Street Complete Phase I - 8 Street to Olympic Parkth Race Street Complete Phase I - 8 Street to Olympic Parkth Total Grant Funds: $681,348 Grant Source & ID: FHWA/WSDOT Amount Grant Match/Loan Data: $113,348 HIP, $568,000 STP; 13.5% local government match _roΪ t ost: $3,Į73,000 Ēard CÁstÁn¸: òrÁl 201Į Race Street Complete Phase I - 8 Street to Olympic Parkth Total Grant Funds: $487,240 Grant Source & ID: FHWA/RTPO Amount Grant Match/Loan Data: $487,240 TA; 13.5% local government match _roΪ t ost: $3,Į73,000 Ēard CÁstÁn¸: >unª 2020 Race Street Complete Phase I - 8 Street to Olympic Parkth Total Grant Funds: $500,000 Grant Source & ID: FHWA/WSDOT Amount Grant Match/Loan Data: $500,000 STBG; 13.5% local government match _roΪ t ost: $3,Į73,000 Ēard CÁstÁn¸: u¸ust 2020 Race Street Complete Phase I - 8 Street to Olympic Parkth Total Grant Funds: $550,000 Grant Source & ID: FHWA/WSDOT Amount Grant Match/Loan Data: $550,000 STBG; 13.5% local government match _roΪ t ost: $3,Į73,000 Ēard CÁstÁn¸: òrÁl 2021 City Council accepted this project as complete on November 18, 2025. Grant Close-out underway. City Council accepted this project as complete on November 18, 2025. Grant Close-out underway. City Council accepted this project as complete on November 18, 2025. Grant Close-out underway. City Council accepted this project as complete on November 18, 2025. Grant Close-out underway. City Council accepted this project as complete on November 18, 2025. Grant Close-out underway. January 20, 2026 L - 28 Total Grant Funds: $1,000,000 Grant Source & ID: FHWA/WSDOT Amount Grant Match/Loan Data: $1,000,000 STBG; 13.5% local government match. _roΪ t ost: $ī,000,000 Ēard CÁstÁn¸: IaĘ 2023 City LaŸor ReimŸursement: $500,000 Transportation Miscellaneous Grants/Contracts Race Street Complete Phase II - 8 Street to Front Streetth Race Street Complete Phase II - Construction Total Grant Funds: $500,000 Grant Source & ID: Peninsula RTPO Transportation Alternative Funding Amount Grant Match/Loan Data: $500,000 _roΪ t ost: $ī,000,000 Ēard CÁstÁn¸: >ulĘ 2024 Race Street Complete Phase II - Construction Total Grant Funds: $2,000,000 Grant Source & ID: FHWA Federal Lands Amount Grant Match/Loan Data: $2,000,000 _roΪ t ost: $ī,000,000 Ēard CÁstÁn¸: >unª 2024 Race Street Complete Phase II - Construction Total Grant Funds: $1,500,000 Grant Source & ID: RCO WWTP Amount Grant Match/Loan Data: $1,500,000; $400,000 local government match _roΪ t ost: $ī,000,000 Ēard CÁstÁn¸: >ulĘ 2025 RAISE Puget Sound to Pacific (Design Only) Total Grant Funds: $3,400,000 Grant Source & ID: FHWA/USDOT Amount Grant Match/Loan Data: $3,400,000 _roΪ t ost: $3,400,000 Ēard CÁstÁn¸: >unª 2023 City LaŸor ReimŸursement: $1,600,000 January 20, 2026 L - 29 Total Grant Funds: $2,188,652 Grant Source & ID: TIB - Urban Arterial 8-2-150(011)-1 Amount Grant Match/Loan Data: TIB: $2,188,652; $547,164 local government match _roΪ t ost: $2,735,816 Ēard CÁstÁn¸: JođªÛŸªr 2025 aقÅÝÖËÙo‚o¬ËÅ A¬Ý™hh‚Å™ËéÝ $قÅoÝưËÅoقoÝ N Street Reconstruction ADA Peabody Street Total Grant Funds: $590,439 Grant Source & ID: TIB Amount Grant Match/Loan Data: $590,439; $104,195 minimum local government match _roΪ t ost: $694,634 Ēard CÁstÁn¸: JođªÛŸªr 2024 City Labor Reimbursement: $7,847 One-Block-Off Arterial Total Grant Funds: $2,175,000 Grant Source & ID: HSIP Amount Grant Match/Loan Data: $2,175,000 _roΪ t ost: $2,175,000 Ēard CÁstÁn¸: Q toŸªr 2024 City Labor Reimbursement: $176,715 Truck Route at US101 Intersection (Design) Total Grant Funds: $3,125,000 Grant Source & ID: FMSIB Amount Grant Match/Loan Data: $TBD _roΪ t ost: $14,275,000 ĿdªsÁ¸n and  onstru tÁonŀ Ēard CÁstÁn¸: >ulĘ 2025 Freight Mobility Planning Total Grant Funds: $2,500,000 Grant Source & ID: Rural & Tribal Assistance Program; US Department of Transportation Amount Grant Match/Loan Data: $TBD _roΪ t ost: $T òòlÁªd: fªòtªÛŸªr 2025 January 20, 2026 L - 30 Transportation Miscellaneous Grants/Contracts APPLIED RESEARCH ASSOCIATES, Inc. / PSA-2024-25 Date Agreement Authorized by City Council: October 15, 2024 Date Amendment 01 Authorized by City Manager: February 28, 2025 Date Amendment 01 Authorized by City Manager: November 26, 2025 Agreement Expires: June 30, 2026 Pavement Management Plan Totals TaskƯ Remaining % Completeillings to ateContractmount 1 Project Management Optional Tasks $94,500.00 $58,805.00 $41,695.00 56% $73,200.00 $167,700.00 $0.00 $52,805.00 $73,200.00 $114,895.00 46% 2 0.00% Downtown Street Study TR0824 (/b ſ _bUı 2Ü İ Ľ _UŅħĥħĪŅĩĪ D‘Āª A¸õªªÛªnĀ Aòòõäđª¦ ŸĘ CÁĀĘ CäąncÁÕIJ SªòĀªÛŸªõ 16, 2025 Agreement Expires: June 30, 2026 Totals TaskƯ Remaining % Completeillings to ateContractmount 1 Project Management $50,000.00 $3,467.21 $46,532.79 7% $50,000.00 $3,467.21 $46,532.79 7% 2026 Local Road Safety Plan & HSIP Grant Support TRANSPO GROUP USA, Inc. / PSA-2026-05 Date Agreement Authorized by City Manager: December 31, 2025 Agreement Expires: March 30, 2026 Totals TaskƯ Remaining % Completeillings to ateContractmount 1 Local Road Safety Plan - 2026 Updates & HSIP Grant Support $20,000.00 $0.00 $20,000.00 0.00% $20,000.00 $0.00 $20,000.00 0.00% TR0322 Intersection Control Study TRANSPO GROUP USA, Inc. / PSA-2025-16 Date Agreement Authorized by City Council: April 15, 2025 Agreement Expires: June 30, 2026 Totals TaskƯ Remaining % Completeillings to ateContractmount 1 Intersection Control Study at Various Locations $49,900.00 $22,216.26 $27,683.74 44.52% $49,900.00 $22,216.26 $27,683.74 44.52%January 20, 2026 L - 31 Transportation Miscellaneous Grants/Contracts WILSON ENGINEERING, LLC Date Agreement Approved by City Manager: October 7, 2025 Agreement Expires: January 31, 2026 First/Front Paving Survey Agreement Totals Tas»Ư Vemaining % Completeillings to ateContractmount 1 Project Management $52,788.47 $47,395.63 $5,392.84 90% $52,788.47 $47,395.63 $5,392.84 90% January 20, 2026 L - 32 Multiple Use Contracts /b J)2Jb2J)ı 2Ü İ Ľ _UAŅħĥħħŅĥĦ Date Agreement Authorized by City Council: May 03, 2022 Date Amendment 01 Authorized by City Manager: December 11, 2023 Date Amendment 01 Authorized by City Manager: December 02,2025 A¸wªªÛªÜĀ 3òÁwªùIJ ª ªÛŸªw ĨĦı ħĥħī éhoéقh V™ÝËéُ™Ý Z™Ùô¬™Ý Totals Task#Remaining % CompleteBillings to DateContractAmount 1 PS#3 Force Main Replacement + Amend 1&2 Directed Services + Amend 1&2 $96,000.00 $90,154.61 $5,845.39 93.91% $69,280.00 $205,280.00 $17,352.04 $107,506.65 $51,927.96 $97,773.35 52.37% 2 3 Transmission Main WTP/D - Amend 2 $40,000.00 $0.00 $40,000.00 25.05% 0.00% ZoÙéoéقh ‚Å• ¬ô¬h Ť¬Å™™Ù¬Å¤ Z™Ùô¬™Ý Task#Remaining % CompleteBillings to DateContractAmount 1 Streets/Professional Services/Bridge Inspections $26,414.00 $19,325.43 $7,088.57 73% $6,784.00 $96,891.00 $6,336.21 $50,369.00 $447.79 $46,521.97 52% 2 3 $41,232.00 $40,142.54 $1,089.46 93% 97% 2023 Bridge Inspection $15,809.00 $15,809.00 $0.00 100% 5 $50,000.00 $22,811.76 $27,188.24 46% 4 Parks/Operations/Repair & Mtce Account for 2020 City Pier Railing Replacement Laurel Street Stairs Direct Structural Engineering Services U‘w¸ªÜĀ ܸÁܪªwùı 2Ü İ Ľ _UAŅħĥĦĮŅĨĭ Date Agreement Approved by City Council: October 1, 2019 Date Amendment 1 Authorized by City Manager: November 2, 2021 Date Amendment 2 Approved by City Council: November 15, 2022 Date Amendment 3 Approved by City Council: February 7, 2023 Date Amendment 4 Approved by City Council: November 6, 2024 Date Amendment 5 Authorized by City Manager: November 26, 2025 Agreement Expires: December 31, 2026 $24,256.00 $15,555.62 $8,700.38 64% 7 $12,841.00 $10,993.97 $1,847.03 86% Totals $297,465.00 $203,637.96 $93,827.04 68% 9 $23,238.00 $22,294.40 $943.60 96% 8 2025 Bridge Inspection 2025 Francis St. Sewer Trestle Repairs 2025 Tumwater Bridge Repairs 6 January 20, 2026 L - 33 Multiple Use Contracts €JHCb Usb†2JH ſ IA__2JH Ľ _UAŅħĥħĪŅĥĪ Date Agreement Authorized by City Council: January 21, 2025 Date Amendment 01 Authorized by City Council: September 2, 2025 A¸wªªÛªÜĀ 3òÁwªùIJ ª ªÛŸªw ĨĦı ħĥħī n/2J2AC U†UnIUı 2Ü İ Ľ _UAŅħĥħĥŅĥĨ Date Agreement Approved by City Council: April 7, 2020 Date Amendment 1 Authorized by City Council: December 15, 2020 Date Amendment 2 Authorized by City Council: December 7, 2021 Date Amendment 3 Authorized by City Manager: December 7, 2022 Date Amendment 4 Authorized by City Manager November 17, 2024 Date Amendment 5 Authorized by City Manager: November 26, 2025 Agreement ėpireù: December 31, 2026 SCADA Technical Support TaskƯ Remaining % Completeillings to DateContractAmount 1 “A” Street WW Hydraulic Survey $11,270.00 $10,300.00 $970.00 91% $17,710.00 $3,220.00 $0.00 $3,200.00 $17,710.00 $20.00 99% 2 3 $7,360.00 $6,100.00 $1,260.00 0% 83% Directed Services Survey + Amend 1 $38,535.00 $23,100.00 $15,435.00 60% 5 $7,360.00 $4,700.00 $2,660.00 64% 4 Peabody Street Survey Park Ave Outfall Topographic Survey Francis Street Outfall Topographic Survey Stormwater at Canyon Edge & Ahlvers ROW $38,940.00 $24,350.00 $14,590.00 63% 7 $9,545.00 $0.00 $9,545.00 0% Totals $133,940.00 $71,750.00 $62,190.00 54% 8 Amendment 1 - Milwaukee Dr. WW Amendment 1 - “A” Street Topographic/ROW 6 TaskƯ Remaining % Completeillings to DateContractAmount 1 Maintenance and Technical Support $101,000.00 $12,000.00 $42,204.50 $5,465.00 $55,796.00 $6,535.00 46% 1.1 1.2 $100,000.00 $68,462.50 $31,538.00 45% 68% Elwha Water SCADA Maintenance Support $19,000.00 $6,390.00 $12,610.00 34% 2.0 $31,000.00 $6,980.00 $24,020.00 23% 1.3 WW SCADA Maintenance Support Water SCADA Maintenance Support Solid Waste SCADA Maintenance Support SCADA Engineering Technical Support $263,000.00 $132,502.00 $130,498.00 50%Totals 2.1 2025 Surveying Services January 20, 2026 L - 34 Total Grant Funds: $300,000 Grant Source & ID: Pacific Salmon Commission SF-2025-H-21 Amount Grant Match/Loan Data: $300,000 _roΪ t ost: $2,Ĭ28,891 Ēard CÁstÁn¸: JođªÛŸªr 2025 $™Å™Ù‚h K¬Ý™hh‚Å™ËéÝ $قÅoÝưËÅoقoÝ Ennis Creek Fish Barrier Removal Ennis Creek Fish Barrier Removal (Design) Total Grant Funds: $255,000 Grant Source & ID: RCO FBRB Amount Grant Match/Loan Data: $255,000; $45,000 minimum local government match _roΪ t ost: $300,000 Ēard CÁstÁn¸: >anuarĘ 2025 City Labor Reimbursement: $20,000 Ennis Creek Fish Barrier Removal (Construction) Total Grant Funds: $1,326,495 Grant Source & ID: NOAA Restoring Fish Passage Amount Grant Match/Loan Data: $TBD _roΪ t ost: $2,Ĭ28,891 òòlÁªd: FªŸruarĘ 2025Ľsndªr bªđÁªĒ Laurel Street Stairs Total Grant Funds: $4,093,861 Grant Source & ID: BRICK Amount Grant Match/Loan Data: $TBD _roΪ t ost: $T òòlÁªd: Q toŸªr 2024Ľsndªr bªđÁªĒ Winter Storm 2024 Recovery Total Grant Funds: $2,000,000 Grant Source & ID: FEMA Amount Grant Match/Loan Data: $2,000,000 _roΪ t losªŅout sndªrĒaĘ January 20, 2026 L - 35 % Complete Totals Project Title Nov. to Dec.Change Orders Contract + RevisedAmountPrior ChangeOrders ContractAmount CON-2025-30 Public Safety Generator Maintenance Ǥ3ĘƤ5Ěĝ.Ě0 Ǥ0.00 Ǥ0.00 Ǥ3ĘƤ5Ěĝ.Ě0 Ǥ3ĘƤ5Ěĝ.Ě0 Ǥ0.00 Ǥ0.00 Ǥ3ĘƤ5Ěĝ.Ě0 General Miscellaneous GrantsưContracts CON-2025-30 Public Safety Generator Maintenance AÜÜą‘Õ ą¦jªĀIJ ŗĨĩıĪīĮİīĥ Expires: August 31, 2027 Totals Project Title Nov. to Dec.Change Orders Contract + RevisedAmountPrior ChangeOrders ContractAmount SVC-2025-17 Mineral Oil Spill Cleanup at ODT Ǥ55Ƥ000.00 Ǥ0.00 Ǥ22Ƥ72Ę.0ĝ Ǥ77Ƥ72Ę.0ĝ ǤǤ55Ƥ000.00 Ǥ0.00 Ǥ22Ƥ72Ę.0ĝ Ǥ77Ƥ72Ę.0ĝ SVC-2025-17 Mineral Oil Spill Cleanup at ODT ntĀ‘Õ (ąÜ¦ÁÜj AÛtąÜĀIJ ŗĦĥĥıĥĥĥ January 20, 2026 L - 36 Date: January 20, 2026 To: City Council From: Sarina Carrizosa, Finance Director Subject: Monthly Update on Past Due Utility Accounts – December OCTOBER 2025 NOVEMBER 2025 DECEMBER 2025 AMOUNT CHANGE % CHANGE NOV - DEC Number of Customers Past Due 1,286 1,520 1,291 (229) -15.07% Number of Disconnections for Non-payment 6 7 7 - 100.0% 60 days past due amount 160,922.90 200,710.77 131,066.03 (69,644.74) -34.70% 90 days past due amount 109,620.22 124,980.59 119,157.35 (5,823.24) -4.66% 120 days past due amount 673,263.50 699,965.48 601,373.40 (98,592.08) -14.09% Total amount past due 943,806.62 1,025,656.84 851,596.78 (174,060.06) -16.97% Total Payment Plan Agreements 72 34 22 (12) -35.29% CITY OF PORT ANGELES MONTHLY REPORT ON PAST DUE ACCOUNTS NOVEMBER - DECEMBER 2025 -40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 60 days past due amount 90 days past due amount 120 days past due amount Total amount past due NOVEMBER -DECEMBER 2025 PAST DUE AMOUNTS OCTOBER 2025 NOVEMBER 2025 DECEMBER 2025 % CHANGE NOV - DEC January 20, 2026 L - 37 In December 2025, the City distributed utility arrearage grant funding held from American Rescue Plan Act (ARPA) funding in the amount of $250,000. This is reflected in the December report’s totals. This was the final grant available for utility assistance. City Staff remain committed to exploring options to provide relief to customers and will provide updates if additional funding is made available. The chart below demonstrates the total amount of utility assistance funding provided to over 6,500 accounts from 2020-2025 totaling $2.45M. 1, 3 5 9 , 9 8 5 1, 2 3 1 , 8 5 8 1 , 2 3 0 , 3 1 4 1 , 2 6 7 , 1 8 4 1, 2 2 1 , 0 2 8 1, 1 9 5 , 1 7 7 1 , 1 6 7 , 7 6 4 1 , 1 7 1 , 2 3 6 1, 1 2 5 , 2 6 6 94 3 , 8 0 7 1, 0 2 5 , 6 5 7 8 5 1 , 5 9 7 6.6% -9.4%-0.1%3.0%-3.6%-2.1%-2.3%0.3%-3.9% -16.1% 8.7% -17.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2025 Percent and Actual Amount Change -Utility Arrearage Total Arrearage Amount % Change Amount 766,058 21,200 72,490 902,383 439,600 250,000 - 200,000 400,000 600,000 800,000 1,000,000 2020 2021 2022 2023 2024 2025 Utility Assistance Funding Distributed by Year January 20, 2026 L - 38 CED Affordable Housing Report - December 2025 Type JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2025 YTD 2024 YTD SUT - HB 1406 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $40,000.00 SUT - HB 1590 $0.00 $50,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $50,000.00 $779,998.00 FWP $39,666.66 $0.00 $17,444.82 $0.00 $6,676.43 $24,153.35 $25,750.54 $1,426.50 $12,776.31 $36,677.64 $18,630.59 $5,357.64 $188,560.48 $365,314.18 NICE- Small Scale $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $11,620.78 NICE - Medium Scale $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 NICE - Large Scale $0.00 $0.00 $0.00 $0.00 $0.00 $46,750.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $46,750.00 $0.00 TOTAL CITY INVESTMENTS $39,666.66 $50,000.00 $17,444.82 $0.00 $6,676.43 $70,903.35 $25,750.54 $1,426.50 $12,776.31 $36,677.64 $18,630.59 $5,357.64 $285,310.48 $1,196,932.96 PRP 3 1 0 0 3 2 0 1 2 2 0 0 14*16 MFTE 0 0 0 0 0 4 0 0 0 0 0 4 8*12 Key SUT- HB 1406 SUT- HB 1590 FWP NICE - Small Scale NICE - Medium Scal NICE - Large Scale PRP MFTE Multi Family Tax Exemption. Contracts are shown in the month they were executed between developer and City, minimum number of estimated new dwelling units listed. Final dwelling unit counts will be determined at permitting/approval phase, and will be detailed on the monthly Building Report.* Please Note: City staff invest considerable time to proactively engage with prospective housing developers in order to amplify these critical City programs. This report only includes one stage of this important process. Fee Waiver Program. The costs of 25 permit types are waived by the City for all infill and multifamily housing projects. New Improvements for Community Enhancement of Neighborhoods Projects (≤ $14,999). Grants are shown in the month that the contract was fully executed between the developer and the City. Sales and Use Tax - HB 1406. Grants are shown in the month that the contract was fully executed between the developer and the City. Sales and Use Tax - HB 1590. Grants are shown in the month that the contract was fully executed between the developer and the City. New Improvements for Community Enhancement of Neighborhoods Projects ($15,000-$24,999). Grants are shown in the month that the contract was fully executed between the developer and the City. New Improvements for Community Enhancement of Neighborhoods Projects (≥ $25,000). Grants are shown in the month that the contract was fully executed between the developer and the City. Permit Ready Plans. Plans are shown in the month they were shared with prospective developer, minimum number of estimated new dwelling units listed. Final dwelling unit counts will be determined at permitting/approval phase, and will be detailed on the monthly Building Report.* January 20, 2026 L - 39 2025 Q4 CED Grant Report January 20, 2026 L - 40 CED Grant Report 2025 Q4 ACTIVE GRANTS Parking and Business Improvement Area (PBIA) & Port Angeles Waterfront District (PAWD) Grant: $46,096.37 (awaiting Q4 amount to be provided by Finance) Source: PBIA Funds Contract Number: N/A Partners: Port Angeles Waterfront District Status: Approved by City Council on December 3rd, 2024. Contract executed on December 17th, 2024. Contractor: N/A Q4 Deliverables: • PAWD reporting demonstrated the following: o Held monthly Elevate PA meetings. o Engaged in various marketing, communications and outreach efforts utilizing social media to promote district activity and community engagement. o Creation of Greater Port Angeles Conference Committee to spur off-season business. o Coordinated Welcoming Vista work parties and hired the Washington Conservation Corps crew to assist with implementation of the 10-year management plan. o Submission of three grant applications, two of which were awarded to assist with implementation of the Elevate PA 5-year Strategic Plan. o Coordination with Blackball Ferry for the Welcome Back Coho event to be held in February 2026. o Encouragement and promotion of economic development in the waterfront district area including the work of the Economic Vitality Committee. o Strengthening and revitalizing commerce in the waterfront district area, including maintaining open communication with waterfront district members to develop a list of concerns and successes in the district. January 20, 2026 L - 41 o Continued facilitating discussions with City staff regarding potential PBIA expansion. o Maintaining and updating the PBIA database. Clallam County Economic Development Council Grant: $20,000 Source: General Fund Contract Number: N/A Partners: Clallam County Economic Development Council Status: Contract period is January 1st, 2025 – December 31st, 2025 Contractor: N/A Q4 Deliverables: • Five new business contacts were initiated. • Assistance with business retention and expansion for 16 local businesses. • Provided startup assistance for five new local businesses. • Assisted 35 local businesses and 55 attendees at the Clallam County Housing Forum Training Workshop. Accelerating Procurement Excellence (APEX) Accelerator Grant: $10,000 Source: General Fund Contract Number: N/A Partners: Accelerating Procurement Excellence (APEX) Accelerator Status: Contract period is January 1st, 2025 – December 31st, 2025 Contractor: N/A Q4 Deliverables: • Assisted with coordinating $10,675.369.04 in Federal Government Awarded Dollars to local businesses. • Hosted matchmaking events for businesses to connect with small business liaison officers and prime contractors including Alliance Northwest, Career Fairs, and a Disaster Response Series. January 20, 2026 L - 42 •Helped 46 businesses through personalized, client-centered advising. •Continued partnerships with local stakeholders to increase visibility of the program. •Assisted 47 businesses with UEI establishment. Lodging Tax Annual Fund Allocation Grants: $1,437,556 Source: Loding Tax Funds Contract Number: N/A Partners: Please see the ‘Q4 Deliverables’ section below. Status: All awardees from the December 2024 approval have contracts that are fully executed. Additional funds were approved at the April 1, 2025 City Council meeting and are now included in this report. Staff continually disburse funds as reimbursement requests come in. Contractor: Lodging Tax funds are used to support the following annual contracts and expenses: •Port Angeles Regional Chamber of Commerce – Visitor Center Operations: $122,342 •LuLish Design – Destination Marketing Campaign: $210,000 •City of Port Angeles ROW Coverage Costs – NTE $10,000 •City of Port Angeles Staff Expenses for LTAX Related Work – $55,824 Q4 Deliverables: Organization Name Amount Reimbursed Olympic Peninsula Tourism Commission $11,599 Lulish Design $45,705 Olympic Peninsula Fungi Festival $9,428 Peninsula Trails Coalition $6,475 N-Dub Productions $22,500 Port Angeles Regional Chamber of Commerce $15,484 Port Angeles Fine Arts Center $6,904 North Olympic Baseball and Softball $24,989 Peninsula Adventure Sports $12,910 The Loom, LLC $991 123 West Design Collective $6,502 GOPA, LLC $10,000 Olympic Peninsula Rowing Association $5,000 Port Angeles Youth Basketball $66,819 Port Angeles Arts Council $6,490 Community Boating Program $20,140 Juan de Fuca Foundation for the Arts $10,825 January 20, 2026 L - 43 Total Amount Reimbursed: $282,761 Affordable Housing Programs Grants: $285,310.48 Source: Sales and Use Tax funds, Fee Waivers, and NICE funds. Contract Number: N/A Partners: Please see the ‘Q4 Deliverables’ section below. Contractor: N/A Q4 Deliverables: Fee Waiver Program Grants •The City waived $60,665.87 in building, land use, fire, engineering, and public works fees for eleven eligible residential projects. Façade Grant Program Grants: $28,000.00 Source: $68,726.15 CDBG program income funds. Contract Number: N/A Partners: Please see the ‘Q4 Deliverables’ section below. Contractor: N/A Q4 Deliverables: •$8,000.00 – The Hub for façade improvements at 117 N Lincoln St. o Reimbursed in December 2025. CLOSED GRANTS GMA Periodic Update Grant: $125,000 ($62,500 received in June 2024 and $62,500 received in June 2025) Source: Washington State Department of Commerce January 20, 2026 L - 44 Contract Number: 24-63335-003 Partners: N/A Status: Contract executed July 1st, 2023; closed June 30th, 2025 Contractor: MAKERS Architecture and Urban Design, LLP Q4 Deliverables: • Final Comprehensive Plan, adopted by City Council on December 16, 2025. 2023 – 2025 Climate Planning Grant: $150,000 ($87,200 received in February 2025; $62,800 received in June, 2025) Source: Washington State Department of Commerce Contract Number: 24-63610-149 Partners: N/A Status: Contract executed July1, 2023; closed June 30, 2025 Contractor: MAKERS Architecture and Urban Design, LLP Q4 Deliverables: • Final Comprehensive Plan, adopted by City Council on December 16, 2025. January 20, 2026 L - 45 Total Engagements YTD:% Change vs Last Year:Avg Daily Engagements YTD:% Timely Responses: Counter Visits = In-person front desk visits. Emails Sent = Messages sent through the permits inbox to applicants. Phone Calls = Customer phone calls logged. Timely Responses = Customer inquiries that receive a response within two business days of the initial contact. The CED Technicians have managed over 7,400 interactions so far this year, with nearly 99% of inquiries responded to within 2 business days. CED Customer Service Report - December 2025 Coming in February7,447 28.5 98.8% 30% 50% 20% Customer Engagement –YTD Counter Visits Emails Sent Phone Calls 2,249 3,730 1,468 COUNTER VISITS EMAILS SENT PHONE CALLS Engagement Type –YTD 2025 YTD 464 553 640 644 730 594 617 571 690 750 526 668 0 100 200 300 400 500 600 700 800 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Engagement Trend 2025 0 100 200 300 400 500 600 700 800 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Timely Response Rate Total Interactions Timely Responses January 20, 2026 L - 46 CED Building Report - December 2025 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2024 YTD 0 0 1 0 2 0 1 0 0 1 0 0 5 $0.00 $0.00 $700,000.00 $0.00 $368,722.00 $0.00 $1,500.00 $0.00 $0.00 $10,000.00 $0.00 $0.00 $9,447,500.00 4 5 3 9 8 9 8 5 9 10 8 8 101 $352,600.00 $100,636.00 $71,652.00 $193,541.00 $295,571.00 $566,877.00 $141,293.00 $275,952.00 $462,277.00 $1,086,670.00 $2,457,501.00 $105,586.00 $7,090,730.00 0 0 0 0 0 0 0 0 0 0 0 0 5 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $14,128,130.00 1 0 0 1 0 0 0 0 0 0 0 0 0 $2,632,599.00 $0.00 $0.00 $69,500.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 0 0 0 1 0 0 0 1 0 0 0 2 $0.00 $0.00 $0.00 $0.00 $56,000,000.00 $0.00 $0.00 $0.00 $120,000.00 $0.00 $0.00 $0.00 $447,689.00 0 0 0 2 2 0 0 0 0 0 0 0 4 $0.00 $0.00 $0.00 $295,000.00 $726,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $937,000.00 2 0 0 0 0 0 3 0 1 2 0 0 12 $800,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $484,827.00 $0.00 $100,000.00 $718,164.00 $0.00 $0.00 $14,469,606.00 1 0 1 1 2 0 1 0 0 0 2 0 10 $250,000.00 $0.00 $282,354.00 $240,000.00 $85,000.00 $0.00 $26,680.00 $0.00 $0.00 $0.00 $240,000.00 $0.00 $1,741,520.00 2 0 1 2 0 2 2 1 2 2 2 1 12 $718,694.00 $0.00 $120,000.00 $570,860.00 $0.00 $463,742.00 $625,525.00 $350,000.00 $850,000.00 $450,000.00 $670,629.00 $245,000.00 $3,735,325.00 0 0 3 0 1 1 2 0 1 2 4 2 25 $0.00 $0.00 $282,659.00 $0.00 $94,565.00 $60,000.00 $108,098.00 $0.00 $29,532.00 $210,000.00 $421,491.00 $290,000.00 $2,196,238.00 18 27 35 27 29 28 33 52 29 40 24 30 294 $332,185.00 $318,083.00 $742,902.00 $416,350.00 $265,008.00 $897,274.00 $386,169.00 $543,867.00 $646,063.00 $878,579.00 $238,528.00 $475,866.00 $5,171,613.00 Comm 2 0 0 1 0 3 0 0 0 2 0 1 21 Res $16,500.00 $0.00 $0.00 $15,000.00 $0.00 $54,380.00 $0.00 $0.00 $0.00 $23,745.00 $0.00 $75,000.00 $374,705.00 30 32 44 43 45 43 50 58 43 59 41 42 491 $5,102,578.00 $418,719.00 $2,199,567.00 $1,800,251.00 $57,834,866.00 $2,042,273.00 $1,774,092.00 $1,169,819.00 $2,207,872.00 $3,377,158.00 $4,028,149.00 $1,191,452.00 $59,740,056.00 3 0 4 4 4 1 3 1 3 1 1 4 27 $67,450.71 $32,495.68 $59,192.12 $49,188.64 $512,626.80 $49,407.87 $40,688.54 $49,618.44 $65,719.76 $48,122.71 $71,094.99 $46,155.21 $870,675.71 0001011001232112*13 4 0 0 0 0 0 6 0 2 4 0 0 16 12*20 2 0 1 2 0 2 2 1 2 2 2 1 17 4*12 1 0 1 1 2 0 1 0 0 0 2 0 8 4*10 0 0 0 0 0 0 0 0 0 0 0 0 0 0*40 7 0 3 3 3 3 9 1 5 8 8 3 52 24*95 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12 Permit Fees Paid Comm Ind Public Res New Construction Repair and Alteration New Construction New Single Family New Accessory Structure Repair and Alteration Repair and Alteration Total Permits Issued Total Construction Valuation 2025 YTD Dwelling Units - Duplex New Construction Repair and Alteration New Multi Family New Manufactured Home Dwelling Units - ADU Demolition and Moving Certificate of Occupancy 5 $1,080,222.00 86 $6,110,156.00 *The pending units are in various stages of staff review. Additionally, not all applicants have submitted a complete application at this time. While we expect the majority to advance through the review process, it is possible that some may experience the need for additional review. Dwelling Units - Single Family Dwelling Units-Manufactured Home Dwelling Units - Multi Family (3+) Total Dwelling Units Transitional Housing Units $56,120,000.00 4 $1,021,000.00 0 $0.00 2 $2,702,099.00 2 8 $2,102,991.00 8 $1,124,034.00 17 $5,064,450.00 16 $1,496,345.00 372 $6,140,874.00 $83,146,796.00 $1,091,761.47 9 $184,625.00 529 29 January 20, 2026 L - 47 Total Permits YTD:% Change vs Last Year:% Same-Day Processing:% Timely Issuance: Over-the-Counter permits are completed quickly averaging 1 business day from intake to issuance with nearly 91% processed the same day Same-Day Processing = Measures the time from when an application is received until fees are sent. Counted as “Same-Day” if fees are sent the same business day. Timely Issuance = Measures the time from when payment is received until the permit is issued. Counted as “Timely” if issued within one business day of payment. Note: Customer payment delays are not included in these times. CED Over-the-Counter Permit Report – December 2025 352 Coming in February 90.6%91.5% 0 1 5 11 83 84 168 0 20 40 60 80 100 120 140 160 180 Itinerant Vendor Inspection Only Fire Solar Plumbing Re-Roof/Re-Side Mechanical Permits by Type -YTD 100% 94% 92%89%85%80% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Same-Day Processing Rate 17 28 27 28 29 35 32 51 28 27 27 23 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Permits Issued by Month 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.0 1.0 1.0 0.9 0.6 1.0 Average Staff Time by Type (Days) January 20, 2026 L - 48 NOTES: 1. See PAMC 18.02.240 for applicable procedures. 2. Only if the application is for a permitted use and receives a threshold determination of non-significance. 3. Except for Type II shoreline substantial development permits. CED SB 5290 Report - December 2025 TYPE I - Allowed, Permitted, or Accessory Uses Not Requiring Notice of Application; Building Permits Categorically Exempt from SEPA; Business Licenses; Clearing and Grading Permits; Critical Area Exemptions; Director's Determinations¹; Electrical Permits; Environmentally Sensitive Area Permits and Extensions; Fee Waivers; Final Binding Site Plans; Final Boundary Line Adjustments; Final Overlay Zones; Final Planned Residential Development (PRD); Final Plats; Final Short Plats; Final Unit Lot Subdivisions; Fire Alarm Permits; Fire Permits – Any Other Approval Provided by the Fire Department – Office of the Fire Marshal; Fire Sprinkler Permits; Flood Development Permits; Home Businesses/Home Occupation Permit; Land-Use Verification; Minor Amendments to an Approved Plat, Binding Site Plan, or Planned Residential Development; Minor Deviations Up to 20%; Minor Mobile or Itinerant Vendor Hosting Site Plan Review; NICE Grants; Preliminary Boundary Line Adjustments; Preliminary Short Plats; Regulatory Mobile or Itinerant Vendor Permit; Reasonable Use Exceptions; Right- of-Way Construction Permits; Sales and Use Tax Grants; Shoreline Exemptions; Sign Permits; Short-Term Lodging Licenses; Site Plan Review; Temporary Uses Up to One Year; Utility Feasibility Requests; Wetland Permit Extension; Wetland Temporary Emergency Permit. TYPE II - Administrative Conditional Use Permits; Administrative Conditional Use Permits Required for Transitional Housing Facilities 1–4 Units; Building Permits Requiring SEPA; Cottage Industries; Discretionary Conditional Use Permits; Major Mobile or Itinerant Vendor Hosting Site Plan Review; Minor Plat Amendment; Minor Variances; Preliminary Binding Site Plan; Preliminary Unit Lot Subdivision; SEPA Review (Not Associated with a Public Hearing); Shoreline Substantial Development Permits²; Temporary Housing Facilities; Wetland Permits. TYPE III - Conditional Use Permits; Conditional Use Permits Required for Transitional Housing Facilities 5+ Units; Major Amendments to an Approved Plat or Planned Residential Development; Major Variances; Minor Deviations 21–30%; Plat Vacation; Preliminary Overlay Zones; Preliminary Plats; Preliminary Planned Residential Development (PRD); SEPA Review (Associated with a Public Hearing); Shoreline Conditional Uses; Shoreline Substantial Development Permits³; Shoreline Variances; Temporary Uses – One to Five Years; Unclassified Use –Conditional Use Permits. TYPE IV - Site Specific Rezones. TYPE V - Amendments to Development Regulations; Amendments to the Port Angeles Municipal Code; Annexations; Area-Wide Rezones; Comprehensive Plan Amendments; Development Agreements; Master Land Use, Subarea, Functional, and/or Utility Plans and Amendments; Shoreline Master Program Adoption and Amendments. 182 190 66 0 1 0 20 40 60 80 100 120 140 160 180 200 <14 Days 15-30 Days 31-65 Days 65-100 Days 100-170 Days Nu m b e r o f P e r m i t s I s s u e d Total Number of Days for Permit Review Permit Type I (65 Day Deadline) 0 22 3 0 0 1 2 3 4 5 <14 Days 15-30 Days 31-65 Days 65-100 Days 100-170 Days Nu m b e r o f P e r m i t s I s s u e d ( Y T D ) Total Number of Days for Permit Review Permit Type II (100 Day Deadline) 00 1 00 0 1 2 3 4 5 <14 Days 15-30 Days 31-65 Days 65-100 Days 100-170 Days Nu m b e r o f P e r m i t s I s s u e d ( Y T D ) Total Number of Days for Permit Review Permit Type III (170 Day Deadline) 00000 0 1 2 3 4 5 <14 Days 15-30 Days 31-65 Days 65-100 Days 100-170 Days Nu m b e r o f P e r m i t s I s s u e d ( Y T D ) Total Number of Days for Permit Review Permit Type IV (170 Day Deadline) 00000 0 1 2 3 4 5 <14 Days 15-30 Days 31-65 Days 65-100 Days 100-170 Days Nu m b e r o f P e r m i t s I s s u e d ( Y T D ) Total Number of Days for Permit Review Permit Type V (No Deadline) January 20, 2026 L - 49 Year in Review Building Connection, Care, and Community •This facility offers a complete commercial kitchen, multi-purpose activity room, dining room, coffee lounge (open to the public), computer room, meeting rooms, craft and activities room, game room, and billiards room. •All rooms are available to rent. (Parties, memorials, workshops, meetings, etc.) BEAUTIFUL MULTI-PURPOSE FACILITY •Completed in 1995 and cooperatively run by the City of Port Angeles and the Senior Center’s Non-Profit Board of Directors. ⚬7 dedicated Board Members ⚬1 full-time city employee (along with support staff -janitorial and maintenance) MISSION STATEMENT The mission of the center is to develop and manage programs to encourage the physical, intellectual, emotional, and social well-being for citizens 45 years and older in a safe and open environment. Annual Memberships: Associate Member (45-54) $18 in city limits /$27 outsideMember (55 and over) $16 in city limits /$25 outside ￭148 volunteers ￭9,804 volunteer hours in the last year! (4.7 FTE’s) ￭1,127 total members(Budgeted $15k vs Actual $19K)•Member-In the city 791•Member –Outside the city 313•Assoc. Member –In the city 9•Assoc. Member –Outside the city 4 VOLUNTEERS AND MEMBERS A Safe & Welcoming Community Space •Open to seniors and community members from all walks of life •A place for connection, learning, nourishment, and support •Focused on dignity, inclusion, and well-being Our Purpose & Impact Engagement That Matters •Seniors participated in 68 programs and classes •Totaled over 13,150 hours of programing! •More than 53,370 hours of individual participation! •Activities support physical, mental, and social well- being •High participation reflects trust and relevance Programs & Participation A day in the life… Small Moments, Big Impact •Coffee Lounge served 5,687 cups of connection •Crafty Corner sold nearly $5,000 in handmade goods by local seniors •Computer lab had over 430 visits for computer usage or tutoring. ￭Buildings Skills & Independence ￭How to Clean Your Home for Seniors ￭Dementia Friends Workshop ￭Creating a Dementia-Friendly Community ￭Technology for Seniors ￭Guide Dogs for the Blind Workshops & Learning Connecting Beyond Our Walls •Senior Center Info Booth at Clallam County Fair •Adopt a Grandparent Holiday Gift Angel Tree •PA Food Bank Tuna & Pet Food Drive •Joyce Dayze Parade & Senior Info Booth •Volunteer Takeover at Winter Ice Village •Partnered with the Lower Elwha Klallam Tribe to help create 200+ blankets for the Paddle to Elwha Canoe Journey Outreach in the Community Volunteer Power & Community Partnerships •Senior Resource Fair with 12 community partners •Winter Coat Drive •Annual Holiday Craft Market •23 years supporting North Olympic Discovery Marathon Volunteers assembled 3,000 medals for Run the Peninsula •Senior Health Fair with 10 partners •Emergency Preparedness Fair with Clallam County Emergency Operations, PA Police & PA Fire. Outreach Continued Trusted Information Access •Olympic Medical Center information session •Clallam County senior property tax exemption •Volunteer Hospice & Palliative Care •HomeShare Program •Feiro Marine Life Center •LifeFlight Network •HOPE Science screening & volunteer safety training Informational Presentations HVAC project completed in late 2024, improving comfort, safety, and energy efficiency starting in the winter of 2025. Solar project launched in 2025, with completion anticipated in March 2026, supporting long-term sustainability and reduced operating costs. Facilities & Sustainability Meeting Essential Needs •Holiday Grief Gathering •Monthly blood pressure checks •PA Food Bank Mobile Market (Tues & Fri) •AARP Tax Aide –450+ assisted •Statewide Health Insurances Benefits Advisor's (SHIBA) Medicaid enrollment –575 individuals •North Olympic Healthcare Network Vaccine Clinics •Monthly senior legal clinics •Support groups: Grief, Parkinson’s, Caregivers, Alzheimer’s Support Services COASTAL COMMUNITY ACTION PROGRAM Senior Nutrition Program serves lunches Mon -Fri •5 -year facility use agreement with Coastal Community •42% increase in seniors served •Shift from dinners to lunches for safety and access •8,072 lunches served in 2025 •Meals on Wheels serves 100+ households •23,600 meals prepared and delivered in 2025 $42,350 awarded through Northwest Harvest of Hope Grant, distributed in $50 Safeway gift cards. Seniors reported using these cards for prescriptions, gas, and food during the holidays How the Senior Center Advances City Priorities F1. Develop a Community Health & Wellness Plan F2. Communicate Policy & Plans with Community Partners and Residents F3. Define Measures for Increased Public Health & Wellness F4. Explore New Partnerships to Promote Wellness (Ongoing) •Growing more partnerships •Membership Drives •Continue our focus on governance, inclusivity & continuous improvement! COME OUT FOR A TOUR AND J OIN IN THE FUN! CARMEN GEYER CGEYER@CITYOFPA.US DESK: 360-417-4554 CELL: 360 -912-1047 Adopting Procedures for Accepting Donated Permit- Ready Plans PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 1 Permit-Ready Plan Background •In 2022, the City received a Housing Action Plan Implementation Grant from the Washington State Department of Commerce to implement Task #3 of the City’s 2019 Housing Action Plan to create a Permit -Ready Plan (PRP) Program. •The grant funded the development of five PRPs, including a 480-square -foot studio, a 600-square -foot one -bedroom unit, an 800-square -foot single -story unit, an 800-square -foot two-story unit, and a townhouse unit, for use by community members building within city limits. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 2 Permit-Ready Plan Background Continued •The Permit-Ready Plan Program is intended to lower barriers to infill housing development by reducing design costs and shortening permit review timelines. •Since the program’s inception, building permits have been issued for multiple plan sets, including four 480 -square -foot units, one 600-square -foot unit, one 800-square -foot single -story unit, and four townhouse units. •In 2025, City Council expanded housing incentives by approving fee waivers for projects utilizing Permit -Ready Plans. •Task #3 of the 2025 Housing Action Plan further directs the City to expand the Permit-Ready Plan Library and identify additional tools to make these homes easier to build and finance. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 3 Permit-Ready Plan Proposed Donation Program •The proposed resolution establishes formal procedures for accepting donated engineered plan sets into the City’s Permit-Ready Plan Program. •These procedures allow the City to accept and publish qualifying plan sets for public use, at no cost to the City, while ensuring consistency with current codes, design standards, and community housing goals. •The acceptance of any donated plan as part of the City’s Permit -Ready Plans Program would automatically qualify the use of any donated plan for permit fee waivers in line with Council direction to further promote affordable housing. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 4 Permit-Ready Plan Donation Criteria •Donated plan sets comply with the International Building Code, International Fire Code, International Residential Code, National Electrical Code, Washington State Energy Code, applicable provisions of the Port Angeles Municipal Code —including Chapters 17.21 and 17.22— and all other regulatory requirements in effect at the time of acceptance; •Applicants agree to update donated plans as code requirements change to remain eligible for inclusion in the Permit-Ready Plan Program; and PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 5 Permit-Ready Plan Donation Criteria Continued •Accepted plan sets must contribute meaningfully to community housing needs by providing multifamily housing, middle housing, infill housing, modular or prefabricated construction, sustainable building materials, or innovative design techniques, as defined in Chapter 17.21 of the Port Angeles Municipal Code. •If a proposed plan set does not meet these criteria, the donating firm must demonstrate how the design addresses housing needs identified in the 2025 Housing Needs Assessment. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 6 Permit -Ready Plan Submittal Requirements •Required Submittals: General Building Permit Application Building/Construction Plans Engineering and Structural Calculations (if required) Washington State Energy Code (WSEC) 2021 Edition Forms •Desired Submittals: Pre -engineered fire sprinkler plans are preferred, especially for multifamily units with four or more units. Project Narrative that includes information on how a potential builder can reach out to the design professional with additional questions. Information about the cost to build the plan set (e.g., a sample cost estimate from a contractor). PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 7 Permit -Ready Plan Donation Procedures 1.Submit a Permit -Ready Plan Donation Submittal Application and the required submittals. 2.The City will review the materials, using the same procedures as a Type 1 Building Permit. 3.Both parties will enter into a donation agreement. 4.The plan sets will be added to the PRP library and posted on the City website. 5.After posting, the plan sets can be used by anyone developing housing within Port Angeles City Limits. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 8 Permit-Ready Plan Current Status Four PRP units have been fully built out A 480-square -foot permit-ready ADU was built on W 7th Street. An 800-square -foot permit-ready plan ADU was constructed on Olympus Avenue. A 480-square -foot permit-ready plan used as a primary residence on Rolling Hills Drive. An 800-square -foot, two-story permit -ready primary residence was built on W 16th Street. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 9 Permit-Ready Plan Current Status Continued Seven PRPs have received building permits but are not yet complete A 600-square -foot permit-ready plan ADU on W 3rd Street. Two permit -ready plans, each 480 square feet, used as a primary residence and caretaker unit on W 12th Street. Four PRP Townhomes Duplexes (8 units) have been issued for the beginning build-out of a large subdivision between 14th Street, 16th Street, and N Street. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 10 Permit-Ready Plan Current Status Two Significant developments are utilizing the permit -ready plans: A major subdivision between 14th Street, 16th Street, and N Street recently received final approval to subdivide the parcel into 19 lots. The developer is utilizing the permit - ready plan duplexes for the first phase of the development. There are four duplexes (eight total units) that received their building permits. Another developer is working on a plan for a parcel between W Spruce Street and W Madrona Street. They own 2 acres of land and have proposed building multiple 480- square -foot permit-ready plans. The City is currently reviewing the first building permit for this project. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 11 Staff Recommended Next Steps 1)Adopt the Resolution implementing procedures to accept engineered plan sets into the City’s Permit -Ready Plan Program, and 2)Authorize staff to enter into and administer professional agreements necessary to implement these procedures and make minor modifications as necessary. 12PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 CED 2025 Customer Service Numbers •Permit -Ready Plans are a small portion of the Customer Service Operations that Community and Economic Development (CED) provides to our Community. •In 2025, CED staff engaged with developers and members of our community 7,447 times at our front counter. •CED staff have achieved nearly 99% of inquiries responded to within 2 business days. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 13 CED 2025 Over- the -Counter Programs •In 2025, CED staff issued 352 Over -the -Counter Permits, where nearly 91% were issued on the same day. •Expand program by approving the 2026 Master Fee Schedule Updates. CED, Public Works, and Fire have all been tasked with adding additional Over-the -Counter Permits to the Program by April of this year. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 14 What is Senate Bill 5290 and Port Angeles Municipal Code 18.02 •In accordance with Senate Bill (SB) 5290, we made significant updates to the Port Angeles Municipal Code in 2024. •SB 5290, passed in Washington state in 2023, requires municipalities to modify their procedures for land use and permitting applications. •While this bill does not specifically address building or developmental permits, we took a proactive approach by incorporated these permit types into our amended procedures. •These code updates have established clear timeframes for permit reviews that increase predictability, allowed concurrent reviews to reduce wait times, and consolidated procedures into a more cohesive system to set clearer expectations for customers and staff. •In December of 2024, City Council passed the changes to the Port Angeles Municipal Code to improve permitting processes. The timelines went above and beyond the requirements of Senate Bill 5290, codifying it in Port Angeles Municipal Code (PAMC) 18.02. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 15 What is Senate Bill 5290 and Port Angeles Municipal Code 18.02 continued •In accordance with Senate Bill (SB) 5290, we made significant updates to the Port Angeles Municipal Code in 2024. •SB 5290, passed in Washington state in 2023, requires municipalities to modify their procedures for land use and permitting applications. •While this bill does not specifically address building or developmental permits, we took a proactive approach by incorporated these permit types into our amended procedures. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 16 PAMC 18.02 Permit Types Type 0 Permits Over -the -Counter Permits Includes: Residential Mechanical Permits, Residential Plumbing Permits, Abandoned Tank Removals, Residential Re -roofs, Residential Solar Panels, Waterlines, and others - full list available in 18.02.050 Table 2. Type I Permits Administrative Review Permits Timeframe: 65 Days Includes: Building Permits, Business Licenses, Clearing and Grading Permits, Allowed/Permitted Uses, Preliminary/Final Short Plats, and many others –full list available in 18.02.050 Table 2. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 17 PAMC 18.02 Permit Types continued Type II Permits Administrative Review Permits with 14 -30 Day Public Notice Timeframe:100 Days Includes: Administrative Conditional Use Permits, SEPA, Cottage Industries, Preliminary Binding Site Plans/Unit Lot Subdivisions, Minor Variances, and others -full list available in 18.02.050 Table 2. Type III Permits Quasi-Judicial Review 14-30 Day Public Notice Required Sometimes an additional Notice of Public Hearing Required (can be combined with Public Notice) Public Hearing Timeframe: 170 Days Includes: Conditional Use Permits, Major Variances, Minor Deviations 21 - 30%, Plat Vacations, Preliminary Overlay Zones, Preliminary Plats, Shoreline Variances, and many others -full list available in 18.02.050 Table 2. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 18 PAMC 18.02 Permit Types continued Type IV Permits City Council Decision 14-30 Day Public Notice Required City Council Public Hearing Required Timeframe: 170 Days Includes: Site Specific Rezone Requests Type V Permits Public Notice Required Planning Commission Public Hearing Required City Council Decision Includes: Amendments to Development Regulations, PAMC, Comprehensive Plan Amendments, Development Agreements, Area -Wide Rezones, Shoreline Master Plan Amendments, Critical Area Amendments, Annexations, Subarea or Master Land Use and/or Utility Plans and Amendments, and others -full list available in 18.02.050 Table 2. PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 19 2025 Permit Processing Success – Senate Bill 5290 PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 20 2025 Type I Permits: 439 Permits 99.8% Compliance with Timelines 182 were issued within 14 days 190 issued within 30 days 66 issued within 65 days 2025 Type II Permits: 7 Permits 100% Compliance with Timelines 2 issued within 30 days 2 issued within 65 days 3 issued within 100 days Type III Permits: 1 Permit 100% Compliance with Timelines Singular Permit Issued with 56 Days There were no Type IV Permits in 2025. Thank you PORT ANGELES CITY COUNCIL MEETING –JANUARY 20, 2026 21