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Home My WebLink About02032026 CC Agenda Packet February 3, 2026 Port Angeles City Council Meeting Page 1 February 3, 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 – Special Meeting at 5:30 p.m. – The purpose of the special meeting is for City Council to hold a closed session under authority of RCW 42.30.140(4), to discuss collective bargaining with an employee organization . Call to Order – Regular Meeting at 6:00 p.m. B. Roll Call, Pledge of Allegiance Ceremonial Matters, Proclamations & Employee Recognitions C. Late Items To be placed on this or future agendas, including any executive session needed during or at the end of the meeting. 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 password): 2563 655 0222 Webinar password: MGyDGQVv638 (64934788 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=m78b498b306bc9eb1081811ca46478e55 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, February 3, 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, ind ividuals may speak to agenda items, except those scheduled for a Public 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 reasonable 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 Public 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 busine sses 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. February 3, 2026 Port Angeles City Council Meeting Page 2 PUBLIC HEARINGS Public hearings are set by the City Council in order to meet legal requirements. City Council may set a public hearing in order to receive public input prior to making decisions which impact citizens. City Council may choose to seek public opinion through the public hearing process. 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 E. Consent Agenda | Approve 1. Minutes of December 16, 2025, January 6. 2026, January 20, 2026 and January 27, 2026 / Approve ............................ E-1 2. Expenditure Report between January 10, 2026 and January 23, 2026 in the amount of 3,646,281.72 / Approve .......... E-19 3. Light Operations Material Purchase – Electric Meters / 1) Approve the purchase of two hundred and forty (240) electric meters from WESCO of Portland, OR, through the Sourcewell cooperative purchasing agreement, in the amount of $49,658.40, including applicable taxes, and 2) authorize the City Manager to sign all contract -related documents, to administer the contract, and to make minor modifications as necessary. ....................................................................... E-32 4. Waterfront Trails Repairs Contract - SVC-2022-59 (TR0621) – Final Acceptance / 1) Accept the Olympic Discovery Trial Maintenance Contract Project No. SVC-2022-59 as complete, and 2) authorize staff to proceed with project closeout, and release the retainage upon receipt of all required clearances. ..................................................................................... E-35 5. Accepting the Salmon Recovery Through Local Planning Grant Number 26 -63117-005 / 1) Accept the Department of Commerce Salmon Planning Grant Number 26-63117-005 in the amount of $109,000, and 2) authorize the City Manager or their designee to execute all grant-related documents, administer the grant, and make modifications. ......................... E-37 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 Updated Lodging Tax Advisory Committee Funding Work Plan and Procedures for 2026 / Pass Resolution and Authorize ........................................................................................................................................ H-1 I. Other Considerations 1. Melissa Williams Feiro Presentation / For Information Only 2. Aligned Response and Care (ARC) Team / Approve ..................................................................................................... I-1 3. Ad Hoc Committee Appointment Committees for 2026-2027 / Approve ....................................................................... I-3 4. Permanent Committee Liaisons / Approve ...................................................................................................................... I-5 5. Criminal Justice Update / Authorize ............................................................................................................................... I-7 J. Contracts & Purchasing 1. Lease Extension Agreement with the Port of Port Angeles / Approve, Authorize and Allow .......................................... J-1 K. Council Reports L. Information City Manager Reports: 1. Association of Washington Cities Center for Quality Communities Scholarship Finalist / For Information Only ....... L- M. Second Public Comment Follow the instructions from the first public comment period. Adjournment of PORT�N f! G __1 NOTICE of a SPECIAL MEETING of the PORT ANGELES CITY COUNCIL Notice is hereby given that the City Council of the City of Port Angeles will hold a Special Meeting on Tuesday, February 3,2026, starting at 5:30 p.m. The meeting will be conducted as a hybrid meeting. In hybrid meetings, members of the public, Council members, and City staff 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. To attend meetings virtually, follow the instructions below or visit www.cityofpa.us for more information regarding our virtual meetings agendas and meeting information. To view meeting and agenda information, visit: https://cityofpa.us/583/Meetings-Agendas. The purpose of the Special Meeting is for Council to hold a closed session under authority of RCW 42.30.140(4),to discuss collective bargaining with an employee organization. The regular meeting will begin at 6:00 p.m. Audio only: 1-844-992-4726 Access code(webinar password): 2563 655 0222 Webinar password: MGyDGQVv638 (64934788 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/i.php?MTID=m78b498b306bc9eb1081811ca46478e55 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,February 3,2026 meeting only. Port Angeles City Hall is accessible for persons with disabilities. Requests for special accommodations can be made by contacting the City Clerk's Office. Closed captioning can also be made available. Please contact City Clerk Kari Martinez-Bailey by phone at 360-417-4634, or by email at cityclerk@cityofpa.us, to request accommodations or receive instructions for closed captioning. Kari Martinez-Bailey City Clerk cityclerk@cityofpa.us (p) 360-417-4634 I TTY 360-417-4645 Distribution: City Council Peninsula Daily News KONP Front Lobby(posted) City Council Meeting February 3, 2026 PUBLIC COMMENT SIGN-UP SHEET k s'4 as �l + �* -=r1 . m- _ x �.. y. x^ x ., i ' �. 'L.- `: ,{��,^$,:s�a a v..� a he ,'� s ,�, r� �s;.�`�, k � _ 2:w. ..,a P k m i x t_f` a r -� a ❑PUBLIC HEARING:Ve ❑ Public Comment Agenda f :Art1 H Adoption of the 2026 Budget Topic: / P _ , e or No T"IL 5 4 +Cs,...(<LI.a. 4y I' /Jl(Li ❑PUBLIC HEARING: ❑Public Comment Agenda Adoption of the 2026 Budget Topic: 7 � Ez_ �/ e or No �' �� A7 ),,, /77:3 ❑PUBLIC HEARING: ❑Public Comment Agenda AAA _i Adoption of the 2026 Budget Topic: ' oLv 7e or No El PUBLIC HEARING: ❑ Public Comment Agenda 're. C -�\ Adoption of the 2026 Budget Topic: j or No L A --, ❑PUBLIC HEARING: ❑ Public Comment Agenda 410 Adoption of the 2026 Budget Topic: K.,UHL- or No L l I. ❑PUBLIC HEARING: ❑ Public Comment Agenda bi ti l h Adoption of the 2026 Budget Topic: y5tor No �� 'R rayir &mow ( sot nP,,� yr,,z0 ❑PUBLIC HEARING: ❑ Public Comment Agenda Adoption of the 2026 Budget Topic: h16 S( ��- Yes or No ,A. ''1 "' c c c (.t cy r/ )(>rZ-ic e./ ` 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. City Council Meeting February 3, 2026 p as a < � t x -fi• n �•• ab"fux t 2� ❑PUBLIC HEARING: Public Comment Agenda h(inr5 is"), 1-11 Adoption of the 2026 Budget Topic: Yes or No /Uv 0 /Ic: �z ylc 4 hv1L) ❑PUBLIC HEARING: ❑Public Comment Agenda Adoption of the 2026 Budget Topic: Yes or No ❑PUBLIC HEARING: ❑Public Comment Agenda Adoption of the 2026 Budget Topic: Yes or No ❑PUBLIC HEARING: El Public Comment Agenda Adoption of the 2026 Budget Topic: Yes or No ❑PUBLIC HEARING: ❑ Public Comment Agenda Adoption of the 2026 Budget Topic: Yes or No ❑PUBLIC HEARING: ❑ Public Comment Agenda Adoption of the 2026 Budget Topic: Yes or No ❑PUBLIC HEARING: ❑ Public Comment Agenda Adoption of the 2026 Budget Topic: 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. 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., 35 minutes after the special meeting began, 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. PUBLIC COMMENT February 3, 2026 E - 1 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 2 of 9 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 objection, the Mayor added J-3 Extension of Criminal Justice Agreement with Clallam County to the Consent Agenda. February 3, 2026 E - 2 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 3 of 9 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 1st, 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, 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. February 3, 2026 E - 3 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 4 of 9 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 main 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. February 3, 2026 E - 4 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 5 of 9 Council discussion followed. The Mayor restated the motion before Council: Amend the main 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. 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 passed 5-2 with Dexter and Schwab opposed. Prior to the vote, the Mayor clarified the motion before the Council was an amended main motion and would keep the language originally struck and if the motion passed, the comprehensive plan would now include the proposed language in LU-7.15, explore additional consultative best practices similar to meaningful consultation, as written on page G of the City Council packet and also include the proposed language from Council member Suggs. With the passage of the amendment to the amendment of the main motion, the amendment before Council: Amendment to the amendment, putting the language back in, LU 07:15 and add the new language. Explore additional consultative best practices similar to Meaningful Consultation and close coordination with the Washington State Department of Commerce and Tribal representatives, and include, 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. 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: 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 3-4 with Carr, Schromen-Wawrin and Suggs in favor. Council discussion followed. It was moved by Schromen-Wawrin and seconded by Carr to: Amend the main motion, to remove industrial zoning from critical areas on the future land use map and adjust land capacity analysis accordingly. 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: A motion to amend the main motion, to recommend a new policy, C-1.11, which would state: Culverted stream reaches must be protected with the same buffers and standards as open stream channels. February 3, 2026 E - 5 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 6 of 9 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 Council 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 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 2045 Comprehensive Plan Periodic Update proposed ordinance that had been placed on the table. There were no objections from Council. February 3, 2026 E - 6 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 7 of 9 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-##: "Emergency 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: 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, December 17th, 2026 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 Council voted to disregard the Mayor’s ruling, the appeal of the decision of the Mayor was a tie at 3-3. The Mayor spoke to the motion on the table. 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 in favor. 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. February 3, 2026 E - 7 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 8 of 9 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, Hamilton, 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 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, February 3, 2026 E - 8 PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 9 of 9 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. 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: February 3, 2026 E - 9 CITY OF PORT ANGELES CITY COUNCIL Port Angeles, Washington January 6, 2026 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, Schwab, and Suggs. Members Absent: Council member Hodgson. Staff Present: City Manager West, Deputy City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, Clerk Martinez-Bailey, C. Delikat, B. Smith, S. Carrizosa, D. Sharp, S. Curtin, A. Fountain and M. Young. SPECIAL MEETING – SWEARING IN OF COUNCIL MEMBERS At 5:30 p.m. City Clerk Kari Martinez-Bailey conducted a ceremonial swearing in of Council members Kate Dexter, Drew Schwab, and LaTrisha Suggs. The Mayor invited attendees in the Chambers to stay and enjoy refreshments in the hall. Council members spent the remaining time of the special meeting visiting with attendees until the Mayor adjourned the meeting to begin the regular meeting. ADJOURNMENT Mayor Dexter adjourned the Special Meeting at 5:59 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, Schwab, and Suggs. Members Absent: Council member Hodgson. Staff Present: City Manager West, Deputy City Manager Goings, Attorney Bloor, Clerk Martinez-Bailey, C. Delikat, B. Smith, S. Carrizosa, D. Sharp, S. Curtin, A. Fountain and M. Young. It was moved by Suggs and seconded by Hamilton to: Excuse Council member Hodgson from the meeting. Motion carried 6-0. PLEDGE OF ALLEGIANCE Mayor Dexter led the Pledge of Allegiance to the Flag. CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS Mayor Dexter moved to the next item of business and opened the floor for nominations for Mayor. February 3, 2026 E - 10 PORT ANGELES CITY COUNCIL MEETING – January 6, 2026 Page 2 of 4 Miller nominated Dexter for Mayor. Suggs nominated Carr for Mayor. Carr and Dexter each accepted the nominations. Miller and Suggs spoke to their nominations and then each nominee took a moment to speak to their interest to serve as Mayor. Mayor Dexter asked to have each Council member speak to the way they planned to vote. After each member identified their first and second choice, Manager West addressed the appearance there would be a tie vote and offered the suggestion to defer the conversation to the January 20th meeting and reminded Council they had the option to create their own procedures if they preferred. Council discussion followed. It was moved by Miller and seconded by Schwab to: Address the election of Mayor during the January 20th meeting when there are 7 members in attendance. Miller withdrew her motion, hearing no opposition, the motion was withdrawn. It was moved by Suggs and seconded by Carr to: Elect Carr as Mayor. The motion failed 3-3 with Hamilton, Carr and Suggs voting in favor. It was moved by Suggs and seconded by Hamilton to: Address the election of Mayor and Deputy Mayor during the January 20th meeting, when there would be 7 members in attendance. Motion carried 6-0. PUBLIC COMMENT Susie Blake, city resident, spoke in opposition of adding the Washington Low Income Housing Alliance, and spoke of interactions in Port Angeles that made her feel unsafe, and read a passage from a book. Jamie Michel, residing outside the city and representing Lower Elwha Klallam Tribe spoke in favor of the Ennis Creek Restoration on the proposed list of the City’s 2026 Legislative Agenda. John Worthington, residing outside the city, spoke in opposition of the Ennis Creek Restoration item on the proposed list of the City’s 2026 Legislative Agenda. Steven Pelayo, city resident, suggested three priorities Council could prioritize. Mike McHenry, spoke in favor of Ennis Creek Restoration. OTHER CONSIDERATIONS 1. Olympic National Park Update Olympic National Park Superintendent Sula Jacobs spoke about an upcoming open house to hear from members of the public to gather input on what should be built in place of the former Hurricane Ridge Visitor Center and the Bear Gulch active fire. 2. 2026 Legislative Priorities Manager West provided background on the agenda item, spoke to the need to adopt the list as it will be shared with representatives during the Association of Washington Cities City Action Days conference, and spoke to the specifics of the ask in the list of items and the differences to the version presented in the Council packet. February 3, 2026 E - 11 PORT ANGELES CITY COUNCIL MEETING – January 6, 2026 Page 3 of 4 It was moved by Suggs and seconded by Miller to: After the motion was made and amended To adopt the amended list of legislative agenda items as presented during the meeting, to include: Top Priorities • Adequate and Non-Regressive Tax System • Lower Elwha Klallam Tribe Sewer Project • Ennis Creek Restoration Additional Priorities • Trust Land Transfer Program • Solid Waste Compactor Baler • Rayonier Mill Cleanup • Legislative Agendas of WLIHA and AWC • Expansion of funding for street medicine programs to include established and active programs in Port Angeles and Clallam County • Successful completion of the waterfront Marine Discovery Center And allow staff to make minor modifications as necessary. Motion carried 6-0. The Mayor recessed the meeting for a break at 7:26 p.m. The meeting reconvened at 7:33 p.m. 3. 2026 Association of Washington Action Days Manager West presented the agenda item, spoke to the opportunities the conference offers attendees, and spoke to an upcoming Association of Washington Cities Annual Conference during the summer. By a show of hands, Council members interested in attending raised their hands, expressing their interest in participating. It was moved by Suggs and seconded by Carr to: Select Dexter, Carr, and Hamilton to attend the 2026 Association of Washington Cities City Action Days conference. Motion carried 6-0. CITY COUNCIL REPORTS Council member Suggs reflected on events that took place on January 6, and spoke to her interest of safety for the officers guarding the Capital. Council member Schwab spoke to the addition of board opportunities for entities not currently part of the Council assignments list. Deputy Mayor Carr spoke to the William Shore Pool Board and spoke to employee health care and spoke to time away on vacation over the winter break. Council member Miller thanked Dexter and Carr for their willingness to serve and spoke to updates from the Waterfront District on downtown and spoke to interest of intentions of the ARC committee. Council member Hamilton spoke to work done during his break and a wastewater treatment facility tour by Director Curtin and a meeting with the director of Olympic Peninsula Community Clinic. Mayor Dexter spoke to her upcoming Council assignment meetings. February 3, 2026 E - 12 PORT ANGELES CITY COUNCIL MEETING – January 6, 2026 Page 4 of 4 No other reports were given. INFORMATION Manager West spoke about the Council assignments list in the information section of the packet and he added some details to consider during their January 20th meeting, spoke about two potential committees that could be added to the list of assignments, including consideration of ad hoc committees and that staff would be reaching out on preferences, engagement opportunities, to add or remove, hoping via email, interests in positions to keep or vacate, interest in future engagement opportunities, or additional assignments that could or should be added to the list. The Mayor asked that Council report any corrections to the Clerk. Council members spoke to adjustments needed for the final assignment list. SECOND PUBLIC COMMENT John Ralston, city resident, spoke to safety features added at Third and Oak Streets, roundabouts, and stoplights downtown. James Taylor, city resident, spoke about a Council action taken on November 18. Glenn Barbiari, city resident, spoke about a friend facing personal challenges. John Worthington, residing outside city limits, spoke about creeks and government relations. ADJOURNMENT There being no further business to come before the Council, the Mayor adjourned the meeting at 8:16 p.m. _____________________________________ _______________________________ Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk Minutes were approved on: February 3, 2026 E - 13 CITY OF PORT ANGELES CITY COUNCIL Port Angeles, Washington January 20, 2026 This meeting was conducted as a hybrid meeting. CALL TO ORDER-REGULAR MEETING Mayor Dexter called the regular meeting of the Port An geles City Council to order at 6:00 p.m. ROLL CALL Members Present: Mayor Dexter, Deputy Mayor Carr, Council members Hamilton, Hodgson, Miller, Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, Deputy City Manager Goings, Attorney Bloor, Acting Clerk Winn, C. Delikat, B. Smith, S. Carrizosa, D. Montana, S. Curtin, A. Fountain, C. Geyer, S. Cartmel, B. Braudrick, J. Boehman, L. Baack and M. Young. PLEDGE OF ALLEGIANCE Mayor Dexter led the Pledge of Allegiance to the Flag. CEREMONIAL MATTERS, PROCLAMATIONS & EMPLOYEE RECOGNITIONS Mayor Dexter introduced the Mayor and Deputy Mayor Elections and spoke to the previous meetings' Mayor nominations. Mayor Dexter asked to have each Council member speak to the way they planned to vote. After each member identified their first and second choice, it was identified that Mayor Dexter would have the majority vote. It was moved by Miller and seconded by Schwab to: Dexter serve as Mayor. Motion carried 6-1, with Suggs opposed. Council member Miller nominated Council member Schwab as Deputy Mayor. Council member Schwab accepted the nomination. Council member Suggs nominated Deputy Mayor Car Carr for Deputy Mayor. Deputy Mayor Carr accepted the nomination. Both spoke to their nominations. Mayor Dexter asked to have each Council member speak to the way they planned to vote. After each member identified their first and second choice, it was identified that Deputy Mayor Carr would have the majority vote. It was moved by Suggs and seconded by Hamilton to: Carr serve as Deputy Mayor. Motion carried 7-0. LATE ITEMS TO BE PLACED ON THIS OR FUTURE AGENDAS Manager West requested to pull the December 16, 2025 and January 6, 2026 minutes from the Consent Agenda. PUBLIC COMMENT Steve Luxton, city resident, spoke to agenda item E-6 Washington State Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25-94110-003, 935 W 10th St design and using the property for low-income housing. John Ralston, city resident, spoke to item H-1 Adopting Procedures for Accepting Donated Permit-Ready Plans and E-6 Washington State Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25-94110-003 on the Council agenda. February 3, 2026 E - 14 PORT ANGELES CITY COUNCIL MEETING – January 20, 2026 Page 2 of 4 Steven Pelayo, county resident, spoke to the 2025 building report data and local housing. Tim Dalton, Clallam County, welcomed Council member Hodgson and spoke to Consent Agenda item E-6 Washington State Department of Commerce Housing Pipeline Pilot Project Grant Agreement 25 -94110-003. Mimi Smith, city resident, spoke to the City’s website and accessing City Council meetings virtually. CONSENT AGENDA At the request of Council member Schwab, and after hearing no objection, Mayor Dexter added J-1 Class B Biosolids Transportation and Beneficial Use SVC-2025-54 to the Consent Agenda. It was moved by Suggs and seconded by Hamilton to approve the Consent Agenda to include: 1. City Council Minutes of October 28, 2025/ Approve 2. Expenditure Report: From December 13, 2025 to January 9, 2026 in the amount of $5,156,614.24 / Approve 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. 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 release the contract bond upon receipt of all required clearances. 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. 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. 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. 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 minor modifications. 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. 10. ADDED TO THE CONSENT AGENDA Class B Biosolids Transportation and Beneficial Use SVC-2025- 54 / 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. Motion carried 7-0. RESOLUTIONS NOT REQUIRING COUNCIL PUBLIC HEARINGS 1. Adopting Procedures for Accepting Donated Permit -Ready Plans Deputy City Manager Calvin Goings introduced the item and Community and Economic Development (CED) Manager Shannen Cartmel. CED Manager Cartmel used slides to aid in the presentation and spoke to the permit-ready plan history, the donated permit- ready plan criteria and the over-the-counter program. Deputy City Manager Goings and CED Manager Cartmel fielded Council questions. Council discussion followed. February 3, 2026 E - 15 PORT ANGELES CITY COUNCIL MEETING – January 20, 2026 Page 3 of 4 Mayor Dexter read the resolution by title, entitled, RESOLUTION NO. 01-26 A RESOLUTION of the City Council of the City of Port Angeles, Washington, Adopting Procedures for Accepting Donated Permit-Ready Plans. It was moved by Suggs and seconded by Carr to: Pass the resolution as read and authorize the City Manager or their designee to enter into and administer donation agreements necessary to implement these procedures and to make minor modifications. Motion carried 7-0. OTHER CONSIDERATIONS 1. Senior Center Yearly Update Parks & Recreation Director Delikat introduced Senior Center Manager Carmen Geyer, who used slides to provide Council with an update on the Port Angeles Senior Center, including memberships, volunteers, the purpose and impact, programs and classes, and services that are available. Manager Geyer also spoke to the facility project updates and fielded Council questions. The Mayor recessed the meeting for a break at 7:19 p.m. The meeting reconvened at 7:25 p.m. 2. 2026-2027 Council Assignments City Manager Nathan West introduced the item and spoke to the feedback that was provided by Council. Manager West spoke to Mayor Dexter and Deputy Mayor Carr collaborated on a recommendation for Council assignments based on the feedback that was collect from Council. Manager West also spoke to some potential issues, and the removal of committee assignments. Council discussion followed. It was moved by Carr and seconded by Miller to: Adopt Mayor Dexter’s City Council assignment list with the removal of ARC until the February 3rd meeting. Motion carried 7-0. CITY COUNCIL REPORTS Council member Hamilton spoke to the upcoming Association of Washington Cities City Action Days conference and the opportunity to speak with the 24th Legislative District representatives. Council member Miller spoke to the 2026 Point-in-Time Count census for unhoused individuals on January 29 th and an open house February 11th from 2pm-5pm at the Serenity House. Deputy Mayor Carr spoke to a change of current Council assignments and the opportunity to be a part of new assignments. Council member Hodgson spoke to service calls for first responders during the holiday and thanked the m for their work. Council member Schwab spoke to meeting with a constituent, attending an Olympic National Park Hurricane Ridge lodge meeting, a Olympic Peninsula Tourism Commission partner work session, a Chamber of Commerce luncheon, an Elevate PA / Waterfront district meeting, and spoke to changing the approach of Council reports. Council member Suggs spoke to her attendance at the Olympic National Park Hurricane Ridge lodge meeting, and spoke to an upcoming Clallam County Marine Research Committee meeting. Mayor Dexter spoke to leaving the Utility Advisory Committee and joining the Lodging Tax Advisory Committee and spoke to a Lauridsen Trust meeting. No other reports were given. February 3, 2026 E - 16 PORT ANGELES CITY COUNCIL MEETING – January 20, 2026 Page 4 of 4 INFORMATION Manager West spoke to the reports in the Council packet and reminded Council that there will be a Special Meeting from 5pm – 7pm on Tuesday, January 27th. SECOND PUBLIC COMMENT Bradley Calloway, city resident, spoke to cameras located near City limits and the concerns they have with security. Kelly Johnson, city resident, spoke to concerns regarding City owned property and illegal camping. Steven Pelayo, county resident, spoke to the community coming together to purchase an E -Bike for a community member and illegal activity in the City. Glenn Barbiari, city resident, spoke to personal issues he is experiencing and his experience at Washington State Department of Social and Health Services. John Worthington, Sequim resident, spoke to a legislator meeting and the salmon recovery program. Susie Blake, city resident, thanked Council for serving, and spoke to a personal harassment experience and read a section from a book called The Gabriel Plan. ADJOURNMENT There being no further business to come before the Council, the Mayor adjourned the meeting at 8:15 p.m. _____________________________________ _______________________________ Kate Dexter, Mayor Aubrianna Winn, Acting City Clerk Minutes were approved on: February 3, 2026 E - 17 CITY OF PORT ANGELES CITY COUNCIL Port Angeles, Washington January 27, 2026 This meeting was conducted as a hybrid meeting. CALL TO ORDER SPECIAL MEETING Deputy Mayor Carr called the special meeting of the Port Angeles City Council to order at 5:00 p.m. and share that Mayor Dexter would be joining virtually in Executive Session. Members Present: Mayor Dexter (attending virtually), Deputy Mayor Carr, Council members Hamilton, Hodgson, Miller, Schwab, and Suggs. Members Absent: None. Staff Present: City Manager West, City Attorney Bloor, and City Clerk Martinez-Bailey. EXECUTIVE SESSION Based on input from City Attorney William Bloor, Mayor Dexter announced the need for an Executive Session. Attorney Bloor stated the meeting would be held under RCW 42.30.110(1)(i) to discuss potential litigation with legal counsel and said the Executive Session would last 60 minutes adding that no other business would be conducted. Council members moved to the Jack Pittis Conference room at 5:00 p.m. where the Executive Session convened. At 5:59 p.m., the City Clerk announced the City Council would need an additional 30 minutes in Executive session. At 6:30 p.m., the Council returned to the Council Chambers. ADJOURNMENT There being no further business to come before the Council, the Mayor adjourned the meeting at 6:32 p.m. _____________________________________ _______________________________ Kate Dexter, Mayor Kari Martinez-Bailey, City Clerk Minutes were approved on: February 3, 2026 E - 18 PORTANGELES FINANCE = WASHINGTON , U . S . DEPARTMENT February 3,2026 We,the undersigned City Officials of the City of Port Angeles, do hereby certify that the merchandise and/or services herein specified have been received and that these claims are approved for payment in the amount of$3,646,281.72 this 3rd day of February, 2026. Mayor Cit Manager "Where the mountains meet the sea" 360.457.0411 j flnonce@cityotpo.us www.cItyofpo.us 321 E.5th Street.Port Angeles,WA 98362 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount SHOTSTOP INC SHIPPING/INSURANCE 001-0000-237.00-00 (78.32) WA STATE PATROL BACKGROUND CHECKS 001-0000-229.50-00 228.00 WASHINGTON (DOL), STATE OF DECEMBER 2025 CPLS 001-0000-229.60-00 471.00 Division Total:$620.68 Department Total:$620.68 PACIFIC OFFICE EQUIPMENT INC SUPPLIES 001-1210-513.31-01 734.35 SUPPLIES 001-1210-513.31-01 136.88 City Manager Division Total:$871.23 PAGEFREEZER SOFTWARE INC MANAGEMENT SERVICES 001-1220-516.41-50 435.35 Human Resources Division Total:$435.35 SOUND PUBLISHING INC ORD 3758 3759 3760 3761 001-1230-514.44-10 60.04 ADVERTISING 001-1230-514.44-10 873.75 City Clerk Division Total:$933.79 City Manager Department Total:$2,240.37 PACIFIC OFFICE EQUIPMENT INC PAPER (OFFICE,PRINT SHOP) 001-2023-514.31-01 167.79 Accounting Division Total:$167.79 EQUIFAX CREDIT REPORTS 001-2025-514.41-50 357.19 LEXISNEXIS SEARCHES 001-2025-514.41-50 217.80 PACIFIC OFFICE EQUIPMENT INC PAPER (OFFICE,PRINT SHOP) 001-2025-514.31-01 167.80 Customer Service Division Total:$742.79 Finance Department Total:$910.58 CLALLAM CNTY COMMISSIONER'S OFFICE SUPPLIES 001-3012-598.51-23 150,569.95 Jail Contributions Division Total:$150,569.95 KARRAS CONSULTING EXECUTIVE SEARCH SERVICES 001-3030-515.41-15 7,500.00 City Attorney Division Total:$7,500.00 City Attorney Department Total:$158,069.95 TSYS MERCHANT SOLUTIONS MAINTENANCE FEE 001-4050-558.41-50 50.00 Building Division Total:$50.00 PACIFIC OFFICE EQUIPMENT INC FURNITURE, OFFICE 001-4060-558.31-01 541.23 PAGEFREEZER SOFTWARE INC MANAGEMENT SERVICES 001-4060-558.41-50 867.10 Planning Division Total:$1,408.33 LAMINAR LAW PLLC MISC PROFESSIONAL SERVICE 001-4071-558.41-50 3,825.00 PORT ANGELES WATERFRONT DISTRICT FACADE GRANT 001-4071-558.49-91 10,000.00 Page 1 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 19 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount SOUND PUBLISHING INC LEGAL ADVERTISING 001-4071-558.44-10 82.16 Economic Development Division Total:$13,907.16 Community Development Department Total:$15,365.49 CLALLAM CNTY CISM TEAM MISC PROFESSIONAL SERVICE 001-5010-521.41-50 600.00 LEXIPOL LLC LIBRARY SERVICES(EXCL 908 001-5010-521.49-01 12,451.42 LEXISNEXIS INTERFACE FEE 001-5010-521.49-01 54.45 PAGEFREEZER SOFTWARE INC MANAGEMENT SERVICES 001-5010-521.41-50 867.10 Police Administration Division Total:$13,972.97 CALIBRE PRESS INC HUMAN SERVICES 001-5021-521.43-10 398.00 Investigation Division Total:$398.00 BOTACH CLOTHING & APPAREL 001-5022-521.31-11 5,375.30 CALIBRE PRESS INC HUMAN SERVICES 001-5022-521.43-10 597.00 DR. PANZA LLC EMPLOYMENT PHYSICAL 001-5022-521.41-50 335.00 MISC EMPLOYEE EXPENSE REIMBURSEMENT K9 SUPPLIES 001-5022-521.49-80 217.78 OLYMPIC MEDICAL CENTER LAB TESTING 001-5022-521.49-90 189.00 SWAIN'S GENERAL STORE INC FIRST AID & SAFETY EQUIP.001-5022-521.31-11 31.44 CLOTHING & APPAREL 001-5022-521.31-11 174.59 Patrol Division Total:$6,920.11 EVIDENT POLICE EQUIPMENT & SUPPLY 001-5029-521.31-01 48.00 SHIPPING 001-5029-521.31-01 18.00 PACIFIC OFFICE EQUIPMENT INC COMPUTER ACCESSORIES&SUPP 001-5029-521.31-80 543.41 Records Division Total:$609.41 LEGACY TELECOMMUNICATIONS, INC ANNUAL GENERATOR INSP 001-5050-521.48-10 232.00 Facilities Maintenance Division Total:$232.00 Police Department Total:$22,132.49 GLOBALSTAR USA 11-25 A/C AC00153767 001-6010-522.42-10 195.42 LINCOLN STREET STATION EXTERNAL LABOR 001-6010-522.31-01 78.70 PAGEFREEZER SOFTWARE INC MANAGEMENT SERVICES 001-6010-522.41-50 867.10 Fire Administration Division Total:$1,141.22 CURTIS & SONS INC, L N SUPPLIES 001-6020-522.35-01 310.52 FLOW TEST 001-6020-522.35-01 1,281.64 FIRST DUE MEMBERSHIPS 001-6020-522.42-10 2,523.03 Fire Suppression Division Total:$4,115.19 Page 2 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 20 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount FIRST DUE MEMBERSHIPS 001-6030-522.31-01 13,756.79 Fire Prevention Division Total:$13,756.79 A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 001-6050-522.41-50 426.56 Facilities Maintenance Division Total:$426.56 Fire Department Total:$19,439.76 PAGEFREEZER SOFTWARE INC MANAGEMENT SERVICES 001-7010-532.41-50 435.34 Public Works Admin. Division Total:$435.34 VIRTUAL PROJECT MANAGER COMPUTER SOFTWARE FOR MIC 001-7012-532.48-02 12,500.00 Engineering & CIP Division Total:$12,500.00 Public Works & Utilities Department Total:$12,935.34 ASCAP MEMBERSHIPS 001-8010-574.41-50 458.00 PAGEFREEZER SOFTWARE INC MANAGEMENT SERVICES 001-8010-574.49-01 435.34 SESAC, INC MEMBERSHIPS 001-8010-574.41-50 641.00 Parks Administration Division Total:$1,534.34 CENTRAL WELDING SUPPLY CYLINDER RENTAL 001-8080-576.45-30 37.11 DR. PANZA LLC CDL PHYSICAL 001-8080-576.31-01 210.00 HERMANN BROS LOGGING & CONST DUMP FEES 001-8080-576.48-10 209.70 RODDA PAINT CO PUMP REPAIR KITS 001-8080-576.31-20 1,205.00 Parks Facilities Division Total:$1,661.81 Parks & Recreation Department Total:$3,196.15 CALL LUKE! LLC RODENT SERVICE 001-8131-518.48-10 250.47 LEGACY TELECOMMUNICATIONS, INC ANNUAL GENERATOR INSP 001-8131-518.48-10 464.00 Central Svcs Facilities Division Total:$714.47 Facilities Maintenance Department Total:$714.47 General Fund Fund Total:$235,625.28 COMMUNITY BOATING PROGRAM MISCELLANEOUS SERVICES 101-1430-557.41-50 4,140.00 CONCERTS ON THE PIER PRODUCTION COSTS 101-1430-557.41-50 10,000.00 DUNGENESS CRAB FESTIVAL EVENT MARKETING 101-1430-557.41-50 9,500.00 ROW PERMIT-CRAB FEST 101-1430-557.41-50 1,465.70 HURRICANE RIDGE WINTER SPORTS CLUB SHUTTLE EXPENSES 101-1430-557.41-50 5,040.00 LULISH DESIGN MISC PROFESSIONAL SERVICE 101-1430-557.41-50 5,000.00 MEDIA CAMPAIGN 101-1430-557.41-50 14,976.51 OLYMPIC PENINSULA FUNGUS CAMPGROUND FEES 101-1430-557.41-50 572.50 Page 3 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 21 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount FESTIVAL OLYMPIC PENINSULA VISITOR BUREAU MISC PROFESSIONAL SERVICE 101-1430-557.41-50 2,834.77 PORT ANGELES MARATHON ASSN SPRUCE RAILROAD RUN 101-1430-557.41-50 3,000.00 SPRUCE RR RUN 101-1430-557.41-50 3,000.00 PORT ANGELES WATERFRONT DISTRICT WEST BY NW MURAL FESTIVAL 101-1430-557.41-50 7,913.49 Lodging Excise Tax Division Total:$67,442.97 Lodging Excise Tax Department Total:$67,442.97 Lodging Excise Tax Fund Total:$67,442.97 A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 102-7230-542.41-50 145.95 CED/CONSOLIDATED ELEC DIST LIGHTING PANEL 102-7230-542.31-20 231.63 PUD #1 OF CLALLAM COUNTY LAURIDSEND BLVD & L ST 102-7230-542.47-10 21.96 XYLEM TREE EXPERTS TREE TRIMMIN 102-7230-542.48-10 11,500.00 Street Division Total:$11,899.54 Public Works-Street Department Total:$11,899.54 Street Fund Total:$11,899.54 CLALLAM CNTY CISM TEAM MISC PROFESSIONAL SERVICE 107-5160-528.41-50 600.00 ESCHAT AWS GOVCLOUD HOSTED SVC 107-5160-528.49-01 1,120.68 HI-TECH SECURITY SERVICE CALL 107-5160-528.48-10 381.15 LEGACY TELECOMMUNICATIONS, INC ANNUAL GENERATOR INSP 107-5160-528.48-10 232.00 QUILL CORPORATION FOODS: STAPLE GROCERY 107-5160-528.31-01 87.10 VOIANCE LANGUAGE SERVICES, LLC ENTERPRETATION SERVICES 107-5160-528.42-11 52.44 Pencom Division Total:$2,473.37 Pencom Department Total:$2,473.37 Pencom Fund Total:$2,473.37 SHOTSTOP INC SHIPPING/INSURANCE 310-5950-594.65-10 958.34 Homeland Security Division Total:$958.34 Public Safety Projects Department Total:$958.34 CONSTRUCTION INSPECTION SERVICES ORGANICS HAULING 310-8985-594.65-10 813.75 Misc Parks Projects Division Total:$813.75 Capital Proj-Parks & Rec Department Total:$813.75 Capital Improvement Fund Total:$1,772.09 CONSTRUCTION INSPECTION TESTING/TRAVEL 312-7930-595.65-10 830.00 Page 4 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 22 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount SERVICES FEHR & PEERS PROFESSIONAL FEES 312-7930-595.65-10 1,660.37 INTERWEST CONSTRUCTION, INC. 16TH ST LID RETROFIT 312-7930-595.65-10 223,781.35 PARAMETRIX INC PROFESSIONAL SERVICES 312-7930-595.65-10 5,493.77 PROFESSIONAL SERVICES 312-7930-595.65-10 6,759.49 TRANSPO GROUP PROFESSIONAL SERVICES 312-7930-595.65-10 16,181.25 WILSON ENGINEERING PROFESSIONAL SERVICES 312-7930-595.65-10 5,392.84 GF-Street Projects Division Total:$260,099.07 Capital Projects-Pub Wks Department Total:$260,099.07 Transportation Benefit Fund Total:$260,099.07 CED/CONSOLIDATED ELEC DIST ELECTRICAL EQUIP & SUPPLY 401-0000-141.41-00 1,328.58 MISC UTILITY DEPOSIT REFUNDS FINAL BILL REFUND 401-0000-122.10-99 11.28 FINAL BILL REFUND 401-0000-122.10-99 67.04 FINAL BILL REFUND 401-0000-122.10-99 71.76 FINAL BILL REFUND 401-0000-122.10-99 139.47 FINAL BILL REFUND 401-0000-122.10-99 166.93 FINAL BILL REFUND 401-0000-122.10-99 223.81 FINAL BILL REFUND 401-0000-122.10-99 250.85 FINAL BILL REFUND 401-0000-122.10-99 257.42 FINAL BILL REFUND 401-0000-122.10-99 464.03 Division Total:$2,981.17 Department Total:$2,981.17 VIRTUAL PROJECT MANAGER COMPUTER SOFTWARE FOR MIC 401-7111-533.48-02 2,500.00 Engineering-Electric Division Total:$2,500.00 EES CONSULTING INC NOV WPAG CONTRACT 401-7120-533.49-01 203.22 LIGHTHOUSE ENERGY CONSULTING GVRNG BODY PRESENTATION 401-7120-533.41-50 3,000.00 Power Systems Division Total:$3,203.22 A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 401-7180-533.41-50 482.02 AMAZON CAPITAL SERVICES BUILDING MAINT&REPAIR SER 401-7180-533.35-01 320.84 CED/CONSOLIDATED ELEC DIST SUPPLIES 401-7180-533.34-02 588.06 ELECTRICAL EQUIP & SUPPL 401-7180-533.34-02 52.27 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 74.77 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 81.68 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 517.28 Page 5 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 23 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount CED/CONSOLIDATED ELEC DIST ELECTRICAL EQUIP & SUPPLY 401-7180-533.35-01 43.63 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 163.35 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 743.24 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 71.88 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 98.05 FEDERAL EXPRESS CORP SHIPPING CHARGES 401-7180-533.42-10 9.47 HARTNAGEL BUILDING SUPPLY INC FASTENERS, FASTENING DEVS 401-7180-533.34-02 3.27 KENNEDY, STEPHEN H. RENT 401-7180-533.45-30 8,500.00 EQUIPMENT MAINTENANCE,REC 401-7180-533.31-20 217.80 RENT 401-7180-533.45-30 8,500.00 LUTZCO, INC. UNIFORMS 401-7180-533.31-01 271.08 UNIFORMS 401-7180-533.31-01 511.38 UNIFORMS 401-7180-533.31-01 1,042.29 FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 32.45 FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 130.68 FIRE PROTECTION EQUIP/SUP 401-7180-533.31-01 337.19 MATT'S TOOLS USA, LLC TOOLS 401-7180-533.35-01 1,191.54 MISC EMPLOYEE EXPENSE REIMBURSEMENT MEAL TICKET-STORM 401-7180-533.31-01 46.00 MURREY'S DISPOSAL CO, INC SHREDDING SERVICES 401-7180-533.41-50 300.45 SHREDDING SERVICES 401-7180-533.41-50 685.69 NORTHWEST SAFETY SERVICE, LLC SAFETY TRAINING 401-7180-533.41-50 1,156.90 PLATT ELECTRIC SUPPLY INC ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 38.42 ELECTRICAL EQUIP & SUPPLY 401-7180-533.34-02 7.18 SECURITY SERVICES NW, INC COMMUNICATIONS/MEDIA SERV 401-7180-533.41-50 750.00 UTILITIES UNDERGROUND LOC CTR EXCAVATION NOTIFICATIONS 401-7180-533.49-90 16.54 WEST COAST CODE CONSULTANTS ELECRICAL PLAN REVIEWS 401-7180-533.41-50 348.00 XYLEM TREE EXPERTS TREE TRIMMIN 401-7180-533.48-10 1,550.00 Electric Operations Division Total:$28,883.40 Public Works-Electric Department Total:$34,586.62 Electric Utility Fund Total:$37,567.79 THURMAN SUPPLY PIPE FITTINGS 402-0000-141.40-00 9.75 Division Total:$9.75 Page 6 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 24 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount Department Total:$9.75 FEDERAL EXPRESS CORP SHIPPING CHARGES 402-7380-534.42-10 54.39 SHIPPING CHARGES 402-7380-534.10-01 131.19 MISC CITY CONSERVATION REBATES CONSERVATION REBATE 402-7380-534.49-90 50.00 NORTON CORROSION LTD ANNUAL CORROSION MONITOR 402-7380-534.41-50 1,103.00 UTILITIES UNDERGROUND LOC CTR EXCAVATION NOTIFICATIONS 402-7380-534.49-90 16.54 Water Division Total:$1,355.12 NORTON CORROSION LTD ANNUAL CORROSION MONITOR 402-7382-534.41-50 2,450.00 Industrial Water Treatmnt Division Total:$2,450.00 Public Works-Water Department Total:$3,805.12 Water Utility Fund Total:$3,814.87 NCL NORTH CENTRAL LABORATORIES SAMPLE TESTING 403-0000-237.00-00 (22.69) Division Total:($22.69) Department Total:($22.69) DR. PANZA LLC CDL PHYSICALS 403-7480-535.49-90 210.00 EUROFINS DRINKING WATER & WASTEWATE TESTING 403-7480-535.41-50 1,137.60 TESTING 403-7480-535.41-50 63.00 TESTING 403-7480-535.41-50 482.80 TESTING 403-7480-535.41-50 592.20 TESTING 403-7480-535.41-50 827.50 TESTING 403-7480-535.41-50 935.70 TESTING 403-7480-535.41-50 486.90 TESTING 403-7480-535.41-50 531.90 NCL NORTH CENTRAL LABORATORIES SAMPLE TESTING 403-7480-535.41-50 277.65 PLATT ELECTRIC SUPPLY INC ELECTRICAL EQUIP & SUPPLY 403-7480-535.31-20 (525.80) ELECTRICAL EQUIP & SUPPLY 403-7480-535.31-20 525.85 TENELCO BIOSOLIDS TRANSPORT 403-7480-535.47-10 3,655.58 BIOSOLIDS TRANSPORT 403-7480-535.47-10 3,860.74 BIOSOLIDS TRANSPORT 403-7480-535.47-10 4,192.36 BIOSOLIDS TRANSPORT 403-7480-535.47-10 4,081.82 UTILITIES UNDERGROUND LOC CTR EXCAVATION NOTIFICATIONS 403-7480-535.49-90 16.54 Wastewater Division Total:$21,352.34 Page 7 of 13 Jan 28, 2026 6:08:35 PM February 3, 2026 E - 25 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount Public Works-Wastewater Department Total:$21,352.34 Wastewater Utility Fund Total:$21,329.65 BRADY TRUCKING INC ORGANICS HAULING 404-7538-537.41-50 6,548.58 CLALLAM CNTY SOLID WASTE DEPT INTERLOCAL AGREEMENT 404-7538-537.49-90 1,135.91 CLEAN EARTH EVIRONMENTAL SOLUTIONS ENVIRONMENTAL SPECIALIST 404-7538-537.41-50 802.58 ENVIRONMENTAL SPECIALIST 404-7538-537.41-50 871.78 ENVIRONMENTAL SPECIALIST 404-7538-537.41-50 879.01 ENVIRONMENTAL SPECIALIST 404-7538-537.41-50 879.01 DR. PANZA LLC CDL PHYSICALS 404-7538-537.49-90 210.00 MISC EMPLOYEE EXPENSE REIMBURSEMENT MILEAGE REIMBURSMENTS 404-7538-537.31-01 34.65 MILEAGE REIMBURSMENTS 404-7538-537.31-01 50.05 MILEAGE REIMBURSMENTS 404-7538-537.31-01 209.44 SW - Transfer Station Division Total:$11,621.01 A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 404-7580-537.41-50 145.96 Solid Waste-Collections Division Total:$145.96 Public Works-Solid Waste Department Total:$11,766.97 Solid Waste Utility Fund Total:$11,766.97 CLALLAM CNTY TREASURER 1% STORMWATER ASSESSMENT 406-7412-538.41-50 32,559.79 DR. PANZA LLC CDL PHYSICALS 406-7412-538.49-90 210.00 KITSAP COUNTY PUBLIC WORKS 3RD QTR BILLING 406-7412-538.41-50 939.48 UTILITIES UNDERGROUND LOC CTR EXCAVATION NOTIFICATIONS 406-7412-538.49-90 16.53 Stormwater Division Total:$33,725.80 Public Works-Wastewater Department Total:$33,725.80 Stormwater Utility Fund Total:$33,725.80 BOUND TREE MEDICAL, LLC SUPPLIES 409-6025-526.31-13 1,146.57 SUPPLIES 409-6025-526.31-01 17.17 SUPPLIES 409-6025-526.31-01 619.38 SUPPLIES 409-6025-526.31-01 585.59 SUPPLIES 409-6025-526.31-13 176.69 SUPPLIES 409-6025-526.31-01 1,438.37 SUPPLIES 409-6025-526.31-13 207.74 SALE SURPLUS/OBSOLETE 409-6025-526.31-01 1,304.76 SALE SURPLUS/OBSOLETE 409-6025-526.31-01 1,419.68 Page 8 of 13 Jan 28, 2026 6:08:35 PM February 3, 2026 E - 26 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount BOUND TREE MEDICAL, LLC SALE SURPLUS/OBSOLETE 409-6025-526.31-01 1,894.99 CHECK THE DOSE MEMBERSHIPS 409-6025-526.41-50 1,045.44 ESO SOLUTIONS MEMBERSHIPS 409-6025-526.41-50 1,141.23 POWER GENERATION EQUIPMEN 409-6025-526.31-01 2,390.36 FIRST DUE MEMBERSHIPS 409-6025-526.31-01 6,574.48 PUBLIC SAFETY TESTING INC SUBSCRIPTION FEES Q3 409-6025-526.41-50 265.33 SEQUIM MEDICAL ASSOCIATES MONTHLY FEE 409-6025-526.41-50 75.00 STRYKER SALES CORPORATION SUPPLIES 409-6025-526.31-01 1,142.30 SUPPLIES 409-6025-526.31-01 35.33 Medic I Division Total:$21,480.41 Fire Department Total:$21,480.41 Medic I Utility Fund Total:$21,480.41 AIR FLO HEATING COMPANY INC CONSERVATION REBATE 421-7121-533.49-86 600.00 BILL MAIR HEATING & AIR, INC CONSERVATION REBATE 421-7121-533.49-86 920.00 C & F INSULATION CONSERVATION REBATE 421-7121-533.49-86 216.15 DAVE'S HEATING & COOLING SVC CONSERVATION REBATE 421-7121-533.49-86 920.00 CONSERVATION REBATE 421-7121-533.49-86 920.00 HARTNAGEL BUILDING SUPPLY INC CONSERVATION REBATE 421-7121-533.49-86 214.08 CONSERVATION REBATE 421-7121-533.49-86 265.30 Conservation Division Total:$4,055.53 Public Works-Electric Department Total:$4,055.53 Conservation Fund Total:$4,055.53 DELHUR INDUSTRIES INC RELEASE RETAINAGE 451-0000-223.40-00 9,182.72 Division Total:$9,182.72 Department Total:$9,182.72 Electric Utility CIP Fund Total:$9,182.72 DELHUR INDUSTRIES INC RELEASE RETAINAGE 452-0000-223.40-00 11,046.13 RELEASE RETAINAGE 452-0000-223.40-00 28,235.08 Division Total:$39,281.21 Department Total:$39,281.21 Water Utility CIP Fund Total:$39,281.21 DELHUR INDUSTRIES INC RELEASE RETAINAGE 453-0000-223.40-00 10,571.13 RELEASE RETAINAGE 453-0000-223.40-00 28,235.14 Division Total:$38,806.27 Department Total:$38,806.27 Page 9 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 27 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount WasteWater Utility CIP Fund Total:$38,806.27 DELHUR INDUSTRIES INC RELEASE RETAINAGE 454-0000-223.40-00 4,290.01 RELEASE RETAINAGE 454-0000-223.40-00 28,231.64 Division Total:$32,521.65 Department Total:$32,521.65 Solid Waste Utility CIP Fund Total:$32,521.65 DELHUR INDUSTRIES INC RELEASE RETAINAGE 456-0000-223.40-00 15,625.50 RELEASE RETAINAGE 456-0000-223.40-00 33,370.36 Division Total:$48,995.86 Department Total:$48,995.86 PARAMETRIX INC PROFESSIONAL SERVICES 456-7688-594.65-10 1,651.28 PROFESSIONAL SERVICES 456-7688-594.65-10 2,859.88 PROFESSIONAL SERVICES 456-7688-594.65-10 8,640.48 Stormwater Util CIP Projs Division Total:$13,151.64 Public Works Department Total:$13,151.64 Stormwtr Util Projects Fund Total:$62,147.50 AMAZON CAPITAL SERVICES AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 337.20 BAILEY SIGNS & GRAPHICS AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 490.05 BAXTER AUTO PARTS #15 AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 6.18 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 199.75 BELTS AND BELTING 501-0000-141.40-00 76.22 DOBBS PETERBILT INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 580.79 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 101.67 GRAINGER AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 1,566.85 AUTO & TRUCK ACCESSORIES 501-0000-141.40-00 719.57 MOBILE MUSIC UNLIMITED RADIO & TELECOMMUNICATION 501-0000-141.40-00 315.71 RADIO & TELECOMMUNICATION 501-0000-141.40-00 66.37 NAPA AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 227.40 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 43.56 PAPE-KENWORTH NORTHWEST, INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 2,670.00 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 245.89 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 788.78 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 89.36 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 37.00 PETROCARD, INC FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 12,944.51 Page 10 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 28 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount PETROCARD, INC FUEL,OIL,GREASE, & LUBES 501-0000-141.20-00 802.71 SOLID WASTE SYSTEMS, INC AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 167.22 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 841.55 AUTO & TRUCK MAINT. ITEMS 501-0000-141.40-00 185.95 Division Total:$23,504.29 Department Total:$23,504.29 A-1 PERFORMANCE, INC BUILDING MAINT&REPAIR SER 501-7630-548.41-50 181.46 ALLDATA AUTO & TRUCK MAINT. ITEMS 501-7630-548.48-02 1,437.48 AMAZON CAPITAL SERVICES AUTO & TRUCK MAINT. ITEMS 501-7630-548.31-20 287.49 DAREN'S POINT S EXTERNAL LABOR SERVICES 501-7630-548.34-02 95.83 EXTERNAL LABOR SERVICES 501-7630-548.34-02 32.67 DOBBS PETERBILT INC 2025 PETERBILT 520 501-7630-594.65-10 256,041.12 2025 PETERBILT 520 501-7630-594.65-10 256,041.12 FAR-WEST MACHINE & HYDRAULICS AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 130.29 FREIGHTLINER NORTHWEST AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 326.60 LES SCHWAB TIRE CENTER EXTERNAL LABOR SERVICES 501-7630-548.34-02 45.60 MATT'S TOOLS USA, LLC AUTO & TRUCK MAINT. ITEMS 501-7630-548.35-01 52.69 MISC EMPLOYEE EXPENSE REIMBURSEMENT SAFETY GLASSES 501-7630-548.31-01 425.00 NAPA AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 435.92 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 60.88 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 75.11 O'REILLY AUTO PARTS AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 309.05 PRICE FORD LINCOLN AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 56.53 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 245.51 AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 1,036.26 SOLID WASTE SYSTEMS, INC AUTO & TRUCK MAINT. ITEMS 501-7630-548.34-02 526.46 VESTIS SERVICES LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 18.16 LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 18.16 LAUNDRY/DRY CLEANING SERV 501-7630-548.49-90 18.16 WORLD KINECT ENERGY SVCS FUEL,OIL,GREASE, & LUBES 501-7630-548.32-13 64.89 Equipment Services Division Total:$517,962.44 Public Works Department Total:$517,962.44 Equipment Services Fund Total:$541,466.73 Page 11 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 29 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount PACIFIC OFFICE EQUIPMENT INC COPIER CONTRACT 502-2081-518.45-31 2,871.61 SHI INTERNATIONAL CORP COMPUTER HARDWARE&PERIPHE 502-2081-518.48-02 1,208.81 COMPUTER HARDWARE&PERIPHE 502-2081-518.48-02 16,649.49 COMPUTER HARDWARE&PERIPHE 502-2081-518.48-02 832.33 Information Technologies Division Total:$21,562.24 SECURITY SOLUTIONS NORTHWEST HUMAN SERVICES 502-2082-594.65-10 7,733.12 SUPPLIES 502-2082-594.65-10 3,511.89 SHI INTERNATIONAL CORP COMPUTER HARDWARE&PERIPHE 502-2082-594.65-10 15,504.01 COMPUTER HARDWARE&PERIPHE 502-2082-594.65-10 392.89 COMPUTER HARDWARE&PERIPHE 502-2082-594.65-10 5,208.49 TYLER TECHNOLOGIES, INC SERVICES 502-2082-594.65-10 5,720.40 PROJECT MANAGEMENT 502-2082-594.65-10 142.40 IT Capital Projects Division Total:$38,213.20 Finance Department Total:$59,775.44 Information Technology Fund Total:$59,775.44 REDACTED DISABILITY BOARD-DECEMBER 503-1631-517.46-35 12.18 DISABILITY BOARD-DECEMBER 503-1631-517.46-35 228.54 DISABILITY BOARD-DECEMBER 503-1631-517.46-35 1,949.37 DISABILITY BOARD-DECEMBER 503-1631-517.46-35 27,174.34 REDQUOTE, INC. HRA CLAIMS 2025 503-1631-365.90-20 1,311.69 Other Insurance Programs Division Total:$30,676.12 AWC-ASSN OF WASHINGTON CITIES WORKERS COMP RETRO PROGRA 503-1661-517.41-50 38,703.00 Worker's Compensation Division Total:$38,703.00 AWC-ASSN OF WASHINGTON CITIES DRUG & ALCOHOL CONSORTIUM 503-1671-517.41-50 3,060.00 MISC CLAIM SETTLEMENTS IN-HOUSE LIABILITY CLAIM 503-1671-517.49-98 359.52 WCIA (WA CITIES INS AUTHORITY) LARGE DEDUCTIBLE PROGRAM 503-1671-517.41-50 15,300.48 ANNUAL MEMBER ASSESSMENT 503-1671-517.46-10 1,872,461.00 Comp Liability Division Total:$1,891,181.00 Self Insurance Department Total:$1,960,560.12 Self-Insurance Fund Total:$1,960,560.12 AFSCME LOCAL 1619 PAYROLL SUMMARY 920-0000-231.54-40 575.00 BROWN & BROWN OF WASHINGTON PAYROLL SUMMARY 920-0000-231.53-40 2,935.82 CHAPTER 13 TRUSTEE CASE #125-11570 920-0000-231.56-90 1,384.62 Page 12 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 30 City of Port Angeles City Council Expenditure Report Between Jan 10, 2026 and Jan 23, 2026 Vendor Description Account Number Amount FIREFIGHTER'S LOCAL 656 PAYROLL SUMMARY 920-0000-231.54-30 3,423.95 HSA BANK EMPLOYEE P/R DEDUCTIONS 920-0000-231.52-40 6,573.65 EMPLOYEE P/R DEDUCTIONS 920-0000-231.52-40 8,573.65 EMPLOYEE P/R DEDUCTIONS 920-0000-231.52-40 (6,573.65) IBEW LOCAL 997 PAYROLL SUMMARY 920-0000-231.54-20 2,595.73 LEOFF PAYROLL SUMMARY 920-0000-231.51-21 47,472.97 OFFICE OF SUPPORT ENFORCEMENT PAYROLL SUMMARY 920-0000-231.56-20 1,985.98 PERS PAYROLL SUMMARY 920-0000-231.51-10 558.70 PAYROLL SUMMARY 920-0000-231.51-11 12,110.60 PAYROLL SUMMARY 920-0000-231.51-12 78,635.74 PAYROLL SUMMARY 920-0000-231.51-22 20,784.43 POLICE ASSOCIATION PAYROLL SUMMARY 920-0000-231.55-10 433.00 UNITED WAY (PAYROLL) PAYROLL SUMMARY 920-0000-231.56-10 200.00 WSCCCE AFSCME AFL-CIO PAYROLL SUMMARY 920-0000-231.54-40 7,816.55 Division Total:$189,486.74 Department Total:$189,486.74 Payroll Clearing Fund Total:$189,486.74 Total for Checks Dated Between Jan 10, 2026 and Jan 23, 2026 $3,646,281.72 Page 13 of 13 Jan 28, 2026 6:08:35 PMFebruary 3, 2026 E - 31 Date: February 3, 2026 To: City Council From: Scott Curtin, Director of Public Works & Utilities Subject: Light Operations Material Purchase: Electric Meters Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) was approved by the City Council on October 1, 2024. This purchase directly aligns with Strategic Focus Area# 4 – Infrastructure Development, Maintenance, and Connectivity. Background / Analysis: This procurement will stock inventory of residential 240V electric meters. The meters will be used for the current needs of the Light Operations Division with aged and failing meters as well as new service installation. As a participating member of the cooperative purchasing group, the City can piggyback on contracts awarded by Sourcewell to save time in delivery, obtain better pricing and contract terms. This purchase is expected to arrive in approximately two weeks from the date of purchase. Funding Overview: Funding is available in the amount of $49,658.40, including tax, as material inventory through the 2026 Electric Utility Operational budget (401-7180-533-34-02). Summary: Staff is seeking City Council approval for the purchase of two hundred and forty (240) 240V electrical meters for the Light Operations Division in the amount of $49,658.40, including taxes. Through the City’s membership with Sourcewell cooperative purchasing, participating distributor of general electrical supplies WESCO of Portland, OR was selected from the cooperative vendor list, Contract No. 091422-WES. Strategic Plan: This purchase directly aligns with Strategic Focus Area# 4 – Infrastructure Development, Maintenance, and Connectivity. Funding: Funding is available in the amount of $49,658.40, including tax, as material inventory through the 2026 Electric Utility Operational budget (401-7180-533-34-02). Recommendation: 1) Approve the purchase of two hundred and forty (240) electric meters from WESCO of Portland, OR, through the Sourcewell cooperative purchasing agreement, in the amount of $49,658.40, including applicable taxes, and 2) authorize the City Manager to sign all contract-related documents, to administer the contract, and to make minor modifications as necessary. February 3, 2026 E - 32 Pricing from the Sourcewell Cooperative Purchasing contract is summarized below: Vendor Product Quantity Unit Price Price WESCO Distribution, Inc. HBA10YC2-0AJ7-6000 Axe-SD, FM2S, CL200, 240V, Mesh IP 240 $190.00 $45,600 Tax 8.9% 1 $4,058.40 TOTAL: $49,658.40 Attachments: Quotation U00797691.00 February 3, 2026 E - 33 February 3, 2026 E - 34 Date: February 3, 2026 To: City Council From: Scott Curtin, Director of Public Works & Utilities Subject: Waterfront Trails Repairs Contract - SVC-2022-59 (TR0621) – 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 Waterfront Trail Repairs Project TR0621. Background / Analysis: On January 17, 2023, City Council awarded a service contract, SVC-2022-59, to 2 Grade, LLC of Port Angeles, WA to perform maintenance work along the Olympic Discovery Trail with an annual not to exceed amount of $100,000.00 with the option to renew for additional years, not to exceed three years total. The City exercised their option to renew for years 2024 and 2025. The project enabled the City to address ongoing maintenance needs along the ODT to keep the trail open and safe for trail users. Work included slide debris removal, culvert repair, tail side ditch maintenance, trail surface repair and tree maintenance. The project was successfully completed on December 31, 2025. Funding Overview: The approved 2026-2031 Capital Facilities Plan includes funding from budget 312-7930-595-6510 for the Waterfront Trail Repairs in the amount of $100,000 annually for years 2023, 2024, and 2025 as part of the TR0621 project. Summary: Staff is seeking City Council final acceptance for the work performed on the Waterfront Trails Repairs project, SVC-2022-59, by 2 Grade, LLC of Port Angeles, WA for maintenance work performed on the Olympic Discovery Trail. The work was inspected, confirmed to be complete, and is ready for acceptance by City Council with the total final project costs amounting to $216,936.90 including taxes. A five percent (5%) retainage has been withheld for this project. Strategic Plan: This project directly aligns with Strategic Plan Focus Area# 4 – Infrastructure Development, Maintenance, and Connectivity. Funding: The a pproved 2026-2031 Capital Facilities Plan includes funding from budget 312-7930-595- 6510 for the Waterfront Trail Repairs in the amount of $100,000 annually for years 2023, 2024, and 2025 as part of the TR0621 project. Recommendation: 1) Accept the Olympic Discovery Trial Maintenance Contract Project No. SVC-2022-59 as complete, and 2) authorize staff to proceed with project closeout, and release the retainage upon receipt of all required clearances. February 3, 2026 E - 35 City staff recommend City Council accept the Olympic Discovery Trial Maintenance Contract, Service Contract No. SVC-2022-59, as complete, and authorize staff to proceed with project close out, and release the retainage upon receipt of all required clearances. Attachments: None Original Contract Amount Total Contract Amount Unit Quantity Variations Project Cost Variance 2023 82,789.29$ 2024 63,501.91$ 2025 70,645.70$ Total 216,936.90$ Project Cost Summary Annual Final Payment Amount 216,936.90$ -$83,063.10 -38.29%300,000.00$ February 3, 2026 E - 36 1 Date: February 3, 2026 To: City Council From: Calvin Goings, Deputy City Manager Shannen Cartmel, CED Manager Ben Braudrick, Planning Supervisor Courtney Bornsworth, Natural Resources and Grant Administrator Subject: Accepting the Salmon Recovery Through Local Planning Grant Number 26-63117-005 Relationship to Strategic Plan: The 2025-2026 Strategic Plan (Resolution 10-24) identifies Strategic Focus Area #1- Community Resilience. This focus area directs the City to reinforce environmental stewardship by leading change and investing in achievable solutions in alignment with the Climate Action Plan. The 2026-2027 Salmon Recovery Through Local Planning Grant will provide City staff with the expanded capacity to focus efforts on the development of an Urban Forestry Program, leading to achieving goals set out both in the Climate Action Plan and the newly adopted Comprehensive Plan. The 2025-2026 Strategic Plan also identifies Strategic Focus Area #2 – Citywide Resource Optimization. The acceptance of this grant will maximize grant funding to support projects identified in the Climate Resiliency Plan and the Comprehensive Plan. Background / Analysis: The City applied for the Salmon Recovery Through Local Planning Grant administered by the Washington State Department of Commerce in November 2025 and was notified of award selection on December 30, 2025. This no-match grant will support development of an Urban Forest Management Plan informed by a citywide tree inventory and stream corridor analysis. By evaluating urban canopy conditions and Summary: Acceptance of a $109,000 grant awarded by the Washington State Department of Commerce for Salmon Recovery Through Local Planning. This grant will allow the City to develop an Urban Forest Management Plan and complete assessments of tree canopy conditions and five local streams within city limits. The work will support a coordinated, citywide approach to urban forestry, vegetation management, stormwater improvements, and ecosystem recovery. Strategic Plan: This proposal directly aligns with Strategic Focus Area #1 – Community Resilience and Strategic Focus Area #2 – Citywide Resource Optimization. Funding: $109,0 00 in grant funding will be available through June 2027. The grant is deliverable-based, with five defined deliverables over the grant term. Funds will be reimbursed upon completion of each deliverable. No local match is required. Recommendation: 1) Accept the Department of Commerce Salmon Planning Grant Number 26- 63117-005 in the amount of $109,000, and 2) authorize the City Manager or their designee to execute all grant-related documents, administer the grant, and make modifications. February 3, 2026 E - 37 2 identifying stream areas most in need of restoration, the City will be positioned to implement climate- smart strategies that improve stormwater management, support salmon recovery, and enhance overall ecosystem function. The grant also provides a framework for coordinated planning across City departments and establishes a foundation for future urban forestry and habitat restoration initiatives citywide. Funding Overview: The $109,000 no-match grant will fund development of the Urban Forest Management Plan, including professional services to complete the stream assessments and tree inventory analysis. Grant funds may also be used to support City administration and coordination of the program. The grant is fully deliverable-based and does not require a financial contribution from the City. Attachment(s): 1. Salmon Recovery Through Local Planning Grant Agreement for Grant Number 26-63117-005 February 3, 2026 E - 38 Attachment 1 Grant Agreement with City of Port Angeles through Growth Management Services Grant Number: 26-63117-005 For City of Port Angeles Urban Forestry Program Dated: Tuesday, July 1, 2025 February 3, 2026 E - 39 ________________________________________________________________________________________________________ Page 2 of 23 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 ................................................................. 5 3. COMPENSATION .............................................................................................................................................. 5 4. BILLING PROCEDURES AND PAYMENT ............................................................................................................. 5 5. SUBGRANTEE DATA COLLECTION .................................................................................................................... 7 6. INSURANCE ...................................................................................................................................................... 7 7. FRAUD AND OTHER LOSS REPORTING ............................................................................................................. 8 8. ORDER OF PRECEDENCE .................................................................................................................................. 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 “ADA” 28 CFR PART 35 ............................................................................................................................................................. 10 7. ASSIGNMENT ................................................................................................................................................. 10 8. ATTORNEYS’ 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 29. SAVINGS ........................................................................................................................................................ 15 30. SEVERABILITY ................................................................................................................................................. 15 31. SITE SECURITY ................................................................................................................................................ 15 February 3, 2026 E - 40 ________________________________________________________________________________________________________ Page 3 of 23 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 .................................................................................................................................... 23 February 3, 2026 E - 41 ________________________________________________________________________________________________________ Page 4 of 23 Face Sheet Grant Number: 26-63117-005 Washington State Department of Commerce Local Government Division Growth Management Services Salmon Recovery through Local Planning Grant 1. Grantee 2. Grantee Doing Business As (as applicable) City of Port Angeles 321 E 5th Avenue Port Angeles, WA 98362 3. Grantee Representative 4. COMMERCE Representative Courtney Bornsworth Natural Resources & Grant Administrator (360) 582-6449 cbornsworth@cityofpa.us Angela San Filippo Ecosystem Services Manager (564) 233-9522 Angela.sanfilippo@commerce.wa.gov 1011 Plum Street SE PO Box 42525 Olympia, WA 98501 5. Grant Amount 6. Funding Source 7. Start Date 8. End Date $109,000 Federal: State: Other: N/A: 07/01/2025 6/30/2027 9. Federal Funds (as applicable) N/A Federal Agency: N/A ALN 10. Tax ID # 11. SWV # 12. UBI # 13. UEI # 91-6001266 SWV0007712 342 007 752 NBZWTT3BYB68 14. Grant Purpose Develop an Urban Forestry Program to better manage the urban forest in support of ecosystem health for salmonid species that are threatened in local waterways. 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 Terms and Conditions including Attachment “A” – Scope of Work, Attachment “B” – Budget FOR GRANTEE FOR COMMERCE Nathan West, City Manager City of Port Angeles Date Mark K. Barkley, Assistant Director Local Government Division Date APPROVED AS TO FORM ONLY BY ASSISTANT ATTORNEY GENERAL APPROVAL ON FILE February 3, 2026 E - 42 ________________________________________________________________________________________________________ Page 5 of 23 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 If this Agreement is funded in whole or in part by the Climate Commitment Act, Grantee agrees that any website, announcement, press release, and/or publication (written, visual, or sound) used for media-related activities, publicity, and public outreach issued by or on behalf of Grantee which reference programs or projects funded in whole or in part with Washington’s Climate Commitment Act (CCA) funds under this Grant, shall contain the following statement: “The [PROGRAM NAME / GRANT / ETC.] is supported with funding from 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.” The Grantee agrees to ensure coordinated Climate Commitment Act branding on work completed by or on behalf of the Grantee. The CCA logo must be used in the following circumstances, consistent with the branding guidelines posted at CCA brand toolkit, including: A.Any project related website or webpage that includes logos from other funding partners; B.Any publication materials that include logos from other funding partners; C.Any on-site signage including pre-during Construction signage and permanent signage at completed project sites; and D.Any equipment purchased with CCA funding through a generally visible decal. 3.COMPENSATION COMMERCE shall pay an amount not to exceed $109,000.00 for the performance of all things necessary for or incidental to the performance of work as s et 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. EXPENSES Grantee shall receive reimbursement for travel and other expenses as identified below or as authorized in advance by COMMERCE as reimbursable. The maximum amount to be paid to the Grantee for authorized expenses shall not exceed $0.00, which amount is included in the Grant total above. Such expenses may include airfare (economy or coach class only), other transportation expenses, and lodging and subsistence necessary during periods of required travel. Grantee shall receive compensation for travel expenses at current state travel reimbursement rates. 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 sh all include the Grant Number 26- February 3, 2026 E - 43 ________________________________________________________________________________________________________ Page 6 of 23 63117-005. 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 de signated 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. Grant Timeline COMMERCE will pay the Contractor for costs incurred beginning July 1, 2025, for services and COMMERCE will reimburse the Contractor beginning July 1, 2025, for costs paid performing work as described under this Agreement. Allowable expenses for the performance of work and submission of completed deliverables to COMMERCE are eligible for reimbursement under this Contract from July 1, 2025, cost date listed above, through June 30, 2027, end date listed on the Face Sheet, subject to reimbursement requirements stated herein. Commerce shall not reimburse Contractor expenses for activities outside this period. Duplication of Billed Costs 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.). Line Item Modification of Budget A.Notwithstanding any other provision of this contract, the Grantee may, at its sole discretion, make modifications to the line items in the Budget (Attachment B) that will not increase the line item by more than fifteen percent (15%). B.The Grantee shall notify COMMERCE in writing (by email or regular mail) when proposing any budget modification or modifications to a line item of the Budget (Attachment B) that would increase the line item by more than fifteen percent (15%). Conversely, COMMERCE may initiate the budget modification approval process if presented with a request for payment under this contract that would cause one or more budget line items to exceed the fifteen percent (15%) threshold increase described above. February 3, 2026 E - 44 ________________________________________________________________________________________________________ Page 7 of 23 C.Any such budget modification or modifications as described above shall require the written approval of COMMERCE (by email or regular mail), and such written approval shall amend the Budget. Each party to this contract will retain and make any and all documents related to such budget modifications a part of their respective contract file. D.Nothing in this section shall be construed to permit a n increase in the amount of funds available for the Project, as set forth in Section 3 of this contract, nor does this section allow any proposed changes to the Scope of Work, including Tasks/Work Items and Deliverables under Attachment A, without specific written approval from COMMERCE by amendment to this contract. 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 subgrantees. “Subgrantees” shall 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 shall provide COMMERCE thirty (30) calendar days’ advance notice of any 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) days’ advance written notice of cancellation. 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 $1,000,000 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 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. February 3, 2026 E - 45 ________________________________________________________________________________________________________ Page 8 of 23 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 O missions 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 Sub grantees pursuant to this paragraph shall name the Grantee as beneficiary. 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. PERIOD OF PERFORMANCE Commerce reserves the right to extend the contract for up to two contract years. All amendments under this contract are subject to funding availability for the given contract period. 9. 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 February 3, 2026 E - 46 ________________________________________________________________________________________________________ Page 9 of 23 General Terms and Conditions 1. DEFINITIONS As used throughout this Grant, the following terms shall have the meaning set forth below: A. “Authorized Representative” shall mean the Director and/or the designee authorized in writing to act on the Director’s behalf. B. “COMMERCE” shall mean the Washington Department of Commerce. C. “Grant” or “Agreement” or “Contract” means the entire written agreement between COMMERCE and the Grantee, including any Exhibits, documents, or materials incorporated by reference. E-mail or Facsimile transmission of a signed copy of this Grant shall be the same as delivery of an original. D. “Grantee” or “Contractor” 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. “Personal Information” shall mean information identifiable to any person, including, but not limited to, information that relates to a person’s name, health, finances, education, business, 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 “Protected Health Information” under the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). F. “State” shall mean the state of Washington. 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. The terms “subgrantee” and “subcontractor” mean subgrantee/subcontractor(s) in any tier. H. “Subrecipient” shall mean a non-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. “Vendor” is an entity that agrees to provide the amount and kind of services requested by 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’s reports, including computer models and the 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. February 3, 2026 E - 47 ________________________________________________________________________________________________________ Page 10 of 23 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 referred to as the “ADA” 28 CFR Part 35 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. ATTORNEYS’ FEES Unless expressly permitted under another provision of the Grant, in the event of litigation or other action brought to enforce Grant terms, each party agrees to bear its own attorneys’ fees and costs. 9. CONFIDENTIALITY/SAFEGUARDING OF INFORMATION A. “Confidential Information” as used in this section includes: i. All material provided to the Grantee by COMMERCE that is designated as “confidential” by COMMERCE; ii. All material produced by the Grantee that is designated as “confidential” by COMMERCE; 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 determin es 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. February 3, 2026 E - 48 ________________________________________________________________________________________________________ Page 11 of 23 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 event the Materials are not considered “works for hire” under the U.S. Copyright laws, the 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. “Materials” means all items in any format and includes, but is not limited to, data, reports, documents, pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes, and/or sound reproductions. “Ownership” includes the right to copyright, patent, register and the ability 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 i nfringement 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: February 3, 2026 E - 49 ________________________________________________________________________________________________________ Page 12 of 23 • be in writing; • state the disputed issues; • state the relative positions of the parties; • state the Grantee's name, address, and Grant number; and • be mailed to the Director and the other party’s (respondent’s) Grant Representative within three (3) working days after the parties agree that they cannot resolve the dispute. The respondent shall send a written answer to the requestor’s statement to both the Director or the Director’s designee and the requestor within five (5) working days. 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 shall be construed to limit the parties’ choice of a mutually acceptable alternate 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. “Claim” as used in this Grant, means any financial loss, claim, suit, action, damage, or expense, including but not limited to attorney’s fees, attributable for bodily injury, sickness, disease, or death, or injury to or the destruction of tangible property including loss of use resulting therefrom. The Grantee’s obligation to indemnify, defend, and hold harmless includes any claim by Grantee’s agents, employees, representatives, or any subgrantee or its employees. The Grantee’s 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. February 3, 2026 E - 50 ________________________________________________________________________________________________________ Page 13 of 23 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) Division of Insurance Services. This provision does not waive any of L&I’s rights to collect from the 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 Only the Authorized Representative or the Authorized Representative’s delegate by writing (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 prohibi ted 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. February 3, 2026 E - 51 ________________________________________________________________________________________________________ Page 14 of 23 D. Remedies for Breach. Notwithstanding any provision to the co ntrary, 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 agrees to ensure that “similarly employed” individuals in its workforce are compensated as equals, consistent with the following: A. Employees are “similarly employed” if the individuals work for the same employer, the 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’s employees 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 Washington or COMMERCE’s name is mentioned, or language used from which the connection with the state of Washington’s or COMMERCE’s name may reasonably be inferred or 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 February 3, 2026 E - 52 ________________________________________________________________________________________________________ Page 15 of 23 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 co sts 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 r ecords 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 February 3, 2026 E - 53 ________________________________________________________________________________________________________ Page 16 of 23 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’s duties. Every subgrant/subcontract shall include a term that COMMERCE and the State of Washington are not liable for claims or damages arising from a Sub grantee/Subcontractor’s performance of the 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’s income 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. A termination shall be deemed a “Termination for Convenience” if it is determined 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. February 3, 2026 E - 54 ________________________________________________________________________________________________________ Page 17 of 23 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 a re 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 February 3, 2026 E - 55 ________________________________________________________________________________________________________ Page 18 of 23 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’s employees, agents 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. February 3, 2026 E - 56 ________________________________________________________________________________________________________ Page 19 of 23 Attachment A: Scope of Work Grant Objectives: The City of Port Angeles will develop an Urban Forestry Program to better manage the Urban Forest in support of ecosystem health for salmonoid species that are threatened in our local streamways. This program will include the management of trees within the City’s stream corridors to preserve and enhance forest hydrology and ancillary benefits such as urban tree cover and tree retention. The Urban Forestry Program will be developed concurrently with the City’s Critical Areas Ordinance Update to ensure consistency with municipal code and the recently updated Comprehensive Plan, adopted by City Council on December 16, 2025. Urban forestry management connects multiple departments across several City services. A strong Urban Forestry Program that includes salmon habitat restoration and conservation within city jurisdiction is necessary to ensure continuity and consistency with preserving, enhancing and maintaining ecosystem health. Proper urban forestry planning and practices ensure trees remain healthy and the canopy expands citywide. Urban forestry planning includes many salmon restoration practices, including noxious weed control and management, erosion control in geologically hazardous areas, development of stormwater parks and infrastructure, and succession planning for areas that are in decline. Without a holistic approach to urban forestry planning, many of these components fall to the wayside, or are often overlooked in local management decisions. These overlooked components negatively affect stream health and salmon habitat in turn. The City of Port Angeles shares a deep connection between a healthy urban forest and healthy salmon habitat with the Lower Elwha Klallam Tribe and organizations such as the Port of Port Angeles. Nearly half of the current existing tree canopy within the City falls within the riparian zones of the six creek corridors that run through the city from the nearshore habitat to the foothills of the Olympic Mountains. The Urban Forestry Program will direct a shared vision, expectations, and outcomes for City staff and restoration partners. The interdepartmental team will include representatives from Community and Economic Development, Parks and Recreation, and Public Works & Utilities Departments. The Program includes consultation with a group of stakeholders throughout the process. This group will primarily be composed of individuals from various local environmentally focused groups, including but not limited to, the Lower Elwha Klallam Tribe, FutureWise, North Olympic Land Trust, North Olympic Salmon Coalition, Clallam Conservation District, and others. Partners will help ensure that management decisions are not only being made to comply with state and federal requirements, but that local knowledge of our streams and nearshore habitats are included in the program planning process. Stakeholder meetings will be held at minimum quarterly throughout this process. February 3, 2026 E - 57 ________________________________________________________________________________________________________ Page 20 of 23 A consultant will be selected to perform an updated Tree Canopy and Stream Assessment and Inventory. The City’s most recent Tree Canopy Assessment was performed 14 years ago in 2011. The City’s urban forest has seen significant change that has not been properly monitored since the last assessment was performed. The City cannot make informed decisions on how to proceed with managing u rban ecology using best available science without an updated assessment and inventory that includes stream assessments. Tree decline has been apparent throughout the City’s parks, open spaces, and geologically hazardous areas over the last several years, as indicated by the number of reports from private citizens and City staff performing work in the field. The resiliency of these recreational and critical areas relies on proper forest management. Without those crucial first steps, the City cannot adequatel y support an Urban Forestry Program dedicated to improving these areas that so desperately need it. Community outreach and education will be a large component of the Urban Forestry Program, as nearly half of the existing Urban Forest is located along stream ravines and open spaces adjacent or within privately owned lands. Standard tree management practices City-wide will be necessary to ensure adequate tree cover and tree health standards are being met. These standards include Community education as an inte gral component in support of these standards. Multiple public outreach events will take part throughout the development of the Urban Forestry Program, including presentations at Planning Commission and City Council meetings, and attending local events and hosting listening posts to keep the public informed. The actions, steps, and deliverables to developing the City of Port Angeles Urban Forestry Program are indicated in the table below. Action/Steps/Deliverables Description Start Date End Date Step 1.1 Establish Interdepartmental Team to define program expectations and objectives. January 2026 February 2026 Step 1.2 Reach out to stakeholders to establish a stakeholder advisory committee. January 2026 February 2026 Step 1.3 Draft RFP for Tree Inventory/Canopy and Stream Assessment. February 2026 March 2026 Step 1.4 Select Consultant to perform inventory and assessment and execute contract. March 2026 April 2026 Step 1.5 Compile existing plans and develop list of overlapping goals/policies/actions related to January 2026 March 2026 February 3, 2026 E - 58 ________________________________________________________________________________________________________ Page 21 of 23 Action/Steps/Deliverables Description Start Date End Date Urban Forestry, Stormwater, and Habitat Management. Step 1.6 Perform an audit of existing Critical Areas Code and look for deficiencies/necessary updates to comply with Best Management Practices. January 2026 April 2026 Deliverable 1 Program outline with goals and objectives and code audit. April 2026 Step 2.1 Contractor conducts tree and stream inventory and assessment. May 2026 July 2026 Step 2.2 Hold second meeting with the interdepartmental team and Stakeholders to review the Tree Inventory/Canopy and Stream Assessment and discuss next steps. June 2026 June 2026 Step 2.3 Final Tree Inventory/Canopy and Stream Assessment. and reporting provided to the City. August 2026 Deliverable 2 Final Tree Inventory, Canopy, and Stream Assessment Report. September 2026 Step 3.1 Hold first public outreach – farmers market or similar venue to explain results of the Tree Inventory/Canopy and Stream Assessment. Presentation to City Council on findings. August 2026 September 2026 Step 3.2 Use Tree Inventory/Assessment to draft Urban Forest Management Plan (UFMP) August 2026 November 2026 Step 3.3 Use Tree Inventory to update critical areas and stormwater codes to ensure continuity. June 2026 August 2026 Step 3.4 Hold third meeting with interdepartmental team and stakeholders. September 2026 September 2026 Step 3.5 Presentation to Planning Commission on status of the project. October 2026 October 2026 February 3, 2026 E - 59 ________________________________________________________________________________________________________ Page 22 of 23 Action/Steps/Deliverables Description Start Date End Date Deliverable 3 Draft UFMP. December 2026 Step 4.1 Continue to draft the UFMP. October 2026 January 2027 Step 4.2 Hold second public outreach event to inform public about development of UFMP. October 2026 October 2026 Step 4.3 Hold fourth interdepartmental and stakeholder meetings to ensure objectives are being met. December 2026 January 2027 Deliverable 4 Second draft of UFMP and draft tree protection ordinance/street tree code. January 2027 Step 5.1 Update city’s list of approved street trees and planting plan to include climate-resilient species. February 2027 March 2027 Step 5.2 Hold third public outreach event to explain the BMPs private landowners can take to ensure a healthy urban forest city-wide. March 2027 March 2027 Step 5.3 Finish UFMP, including prioritization of projects and implementation. February 2027 May 2027 Step 5.4 Present to Planning Commission and City Council on the final version of the UFMP. May 2027 May 2027 Deliverable 5 Final Urban Forest Management Plan. June 2027 February 3, 2026 E - 60 ________________________________________________________________________________________________________ Page 23 of 23 Attachment B: Budget Deliverables Commerce Grant Funds Deliverable 1: Program outline- goals, objectives, and code audit $13,000 Deliverable 2: Final Tree Inventory, Canopy, and Stream Assessment Report $30,000 Deliverable 3: Draft Urban Forest Management Plan $30,000 Deliverable 4: Second draft of UFMP and draft tree protection ordinance/street tree code $14,000 Deliverable 5: Final Urban Forest Management Plan $22,000 Total Grant Funds $109,000 February 3, 2026 E - 61 1 Date: February 3, 2026 To: City Council From: Calvin W. Goings, Deputy City Manager Sarina Carrizosa, Finance Director Shannen Cartmel, CED Manager Ben Braudrick, Planning Supervisor Courtney Bornsworth, Natural Resources and Grant Administrator Subject: Adopting Updated Lodging Tax Advisory Committee Funding Work Plan and Procedures for 2026 Relationship to Strategic Plan: The Lodging Tax Advisory Committee (LTAC) regularly reviews and updates its Funding Work Plan and Procedures in alignment with the City’s Strategic Focus Area #2 – Citywide Resource Optimization. This proposal supports fiscal sustainability of the Lodging Tax (LTAX) Fund while ensuring fund balance and administrative capacity requirements are met. Background / Analysis: City staff performed an in-depth analysis of the actual administrative costs associated with managing, administering, and providing legal and financial oversight of lodging tax funds and vendor contracts. It was determined that the actual cost to provide this robust oversight is approximately $134,000 a year (see Attachment 1). Recognizing that our community also expects the City to act with fiduciary responsibility in the City’s General Fund that supports police, fire, streets, and parks—City staff requested that the Lodging Tax Advisory Committee fund the full estimated oversight costs. This request is allowable by State law. Instead, the Summary: On December 16, 2025, City Council approved the 2026 Lodging Tax Advisory Committee (LTAC) Budget Recommendation. As part of the discussion, Council unanimously adopted a motion directing staff to bring back a resolution to amend the LTAC Funding Work Plan and Procedures to allocate a portion of the annual Lodging Tax (LTAX) budget for program oversight and staff administration. This resolution formalizes that direction by updating the distribution of funds to support responsible program oversight and administration while reducing reliance on the City’s General Fund. Strategic Plan: This resolution directly supports Strategic Focus Area #2 – Citywide Resource Optimization by ensuring sustainable and efficient use of Lodging Tax revenues. Funding: If approved, 12% or approximately $134,000 in LTAX funds would be dedicated to City staff oversight and administrative costs within the Lodging Tax program in 2026. LTAX funds are available for this purpose. The LTAC will be holding a second round of funding requests where this adjustment will be considered. Recommendation: 1) Pass the Resolution adopting the updated 2026 Lodging Tax Advisory Committee Funding Work Plan and Procedures, and 2) authorize the City Manager or their designee to administer the work plan and procedures, and to make minor modifications. 2 committee recommended appropriating only $55,000 towards this fiduciary oversight and transparency. If this recommendation stood, it would have meant nearly $79,000 in oversight costs would instead be subsidized by the City's General Fund, thus reducing funds available for other essential City services. Given the dozens of contracts executed annually and the growing responsibilities associated with this revenue stream, administrative costs of approximately 12% are reasonable compared to other grant administration practices, where 15% to 30% have become common. On July 1, 2025, City Council approved the 2025 Lodging Tax Advisory Committee Funding Work Plan and Procedures under Resolution 04-05, which did not provide for the dedicated recovery of City administrative costs associated with program administration. On December 16, 2025, City Council approved the 2026 Lodging Tax Advisory Committee (LTAC) Budget Recommendation. As part of the discussion, Council unanimously adopted a motion directing staff to bring back a resolution to amend the LTAC Funding Work Plan and Procedures to allocate a portion of the annual Lodging Tax (LTAX) budget for program oversight and staff administration. This resolution formalizes that direction by updating the distribution of funds to support responsible program administration and oversight at 12% or approximately $134,000 of estimated LTAX funding in 2026, while reducing reliance on the City’s General Fund. LTAX funds are available for this purpose. The LTAC will be holding a second round of funding requests where this adjustment will be considered. The LTAX program currently distributes more than $1.3 million annually to over 30 recipients. Program administration requires ongoing coordination, financial tracking, contract management, reporting, and compliance monitoring. Formalizing the updated Work Plan and Procedures through this resolution ensures consistency with Council direction and provides clear guidance for implementation moving forward. Funding: If approved, 12% or approximately $134,000 in LTAX funds would be dedicated to City staff oversight and administrative costs within the Lodging Tax program in 2026. LTAX funds are available for this purpose. The policy change will reduce the use of General Fund resources for LTAX administration while maintaining appropriate oversight and accountability for the use of public funds. The LTAC will be holding a second round of funding requests where this adjustment will be considered. Attachments: 1. Lodging Tax Program Administration and Fiscal Oversight Estimated Costs 2. Resolution amending Port Angeles Lodging Tax Advisory Committee Funding Work Plan and Procedures for 2026 3. Exhibit A: 2026 Port Angeles Lodging Tax Advisory Committee Funding Work Plan and Procedures 4. City Council Minutes of December 16, 2025 Attachment 1 Lodging Tax Program Administration and Fiscal Oversight Title/Position Approx. Hours Per Year LTAC Responsibilities Planning Supervisor 335 Program administration, interdepartmental coordination. CED Manager 85 Program oversight, staff management. Natural Resources & Grant Administrator 390 Grant administration, contract management, recipient point-of- contact, backup Clerk, invoicing management. Planning Technician 105 Invoicing oversight and support. Administrative Assistant 70 Clerk, meeting preparation and communications. City Clerk 20 Contract administration and oversight. City Financial Officer 100 Budget oversight, meeting preparation and attendance. Budget Accountant 110 Budget accounting, meeting preparation and attendance. Assistant City Attorney and Legal Assistant 100 Application and contract review, legal research, meeting preparation and attendance. City Attorney 30 Application and contract review. Media Services Technician 30 Meeting preparation and broadcasting. Round 1 Awarded: $55,824 Round 2 Request: $78,710 Lodging Tax administration and fiscal oversight includes but is not limited to the following: •Contract administration including drafting, routing, and filing •Invoicing including receiving, reviewing, and processing •Communications with all recipients regarding contract terms, invoices, and reporting requirements •Drafting and reviewing weekly reports of all invoices received and processed •Management and review of applications •Preparation, attendance and broadcasting of Lodging Tax Advisory Committee meetings •City staff manage over $1.3 million in funds and over 30 recipients, which takes a considerable amount of time and support to successfully manage the program and ensure strong fiscal oversight 1 Attachment 2 RESOLUTION NO. ____________ A RESOLUTION of the City Council of the City of Port Angeles, Washington, amending Lodging Tax Advisory Committee Funding Work Plan and Procedures by adding new funding disbursement guidance to include lodging tax fund oversight and administration. WHEREAS, policy direction by Council is indispensable for the establishment of good government; and WHEREAS, on December 16, 2025, Council requested an amendment to the Lodging Tax Advisory Committee Funding Work Plan and Procedures to include full funding of City staff oversight and administration of lodging tax funds; and WHEREAS, in alignment with Council direction, City staff proposes changes to the existing document to set aside twelve (12) percent of the annual budget to be used for staff time to further improve the oversight and administration of lodging tax funds; and WHEREAS, the Council finds that the revised policies as attached in Exhibit A enable the City to achieve a balanced and sustainable approach to promoting our local tourism economy. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY RESOLVE AS FOLLOWS: Section 1. – Lodging Tax Work Plan and Procedures. The 2025 Lodging Tax Advisory Committee Funding Work Plan and Procedures is hereby amended as set forth in Exhibit A and are hereby adopted. Section 2. – Classification. The 2026 Lodging Tax Advisory Committee Funding Work Plan and Procedures 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 local, state, or federal laws, codes, or rules or regulations, or numbering, section/subsection numbers, and any references thereto. 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 13, 2026, upon the publication of an approved summary thereof 2 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 ___ day of _____________ 2026. _______________________________ Kate Dexter, Mayor ATTEST: ________________________________ Kari Martinez-Bailey, City Clerk APPROVED AS TO FORM: _______________________________ William E. Bloor, City Attorney 1 Attachment 3 - Exhibit A Only those portions being amended are shown. All other portions of the document remain unchanged. 2026 2025 Port Angeles Lodging Tax Advisory Committee Funding Work Plan and Procedures Annual Funding Disbursement: The expected outcome of the funded activities is to increase economic activity in Port Angeles through the overnight lodging of tourists, through tourism-related expenditures, and construction of tourism- related facilities in accordance with RCW 67.28.1816. Funding categories and their percentage of annual budgeted expenditures should approximate: 1 Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW. Reserves are to be taken from the initial annual projected available revenues prior to LTAC consideration of expenditure allocation and budget for the annum up to 20% plus 5% reserved 2 Tourism-related marketing; the marketing and operations of special events and festivals designed to attract tourists; and supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended up to 75% 3 Lodging Tax Program Administration and Fiscal Oversight - 12% Attachment 4 - Only Relevant Portion of Minutes is Shown PORT ANGELES CITY COUNCIL MEETING – December 16, 2025 Page 6 of 9 OTHER CONSIDERATIONS 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 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. 1 Date: February 3, 2026 To: City Council From: Nathan A. West, City Manager Calvin W. Goings, Deputy City Manager Subject: Aligned Response and Care (ARC) Team 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: On January 20, 2026, City Council adopted assignments for a variety of internal and external boards, committees, and commissions for 2026-2027. During the Council’s discussions on January 20, several issues were raised for follow-up at tonight’s meeting. City staff have provided background and recommendations on the Aligned Response and Care (ARC) for Council’s consideration. The original goal of the ARC Team was to ensure administrative alignment of operations by bringing together cross-functional decision makers to develop strategic city-wide plans to assist unsheltered individuals to safe and designated facilities, while also safeguarding public spaces. The outcome of this effort was to advise City officials and key stakeholders on recommended long-term strategies to increase housing of unsheltered individuals and sustain clean and safe public spaces. The ARC Team has met monthly and consists of representatives from 4PA and the City’s main operational departments. The ARC Team has successfully coordinated very specific, focused efforts to improve City-owned sites and facilities such as Veteran’s Park, 911 Park, Peabody Creek corridor, and the Olympic Discovery Trail. However, efforts at the broader goals of ARC – such as developing strategic city-wide plans and long- term efforts to assist unsheltered individuals to safe and designated facilities – have yet to be initiated as these responsibilities may partially overlap with the County’s Homelessness Task Force. Additionally, Summary: On January 20, 2026, City Council adopted assignments for a variety of internal and external boards, committees, and commissions for 2026-2027. During the Council’s discussions on January 20, several issues were raised for follow-up at tonight’s meeting. City staff have provided background and recommendations on the Aligned Response and Care (ARC) for Council’s consideration. Strategic Plan: This proposal directly aligns with Strategic Focus Area #1, specifically Goal C. Funding: N/A Recommendation: Approve City staff recommendations for the Aligned Response and Care (ARC) Team as detailed in the memo. February 3, 2026 I - 1 2 Council has yet to formally discuss the myriad of issues around camping and sanctioned encampments that are precursor items needed in order to develop the larger strategic and long-term planning goals cited above. Finally, several bills in Olympia are being discussed that could directly impact the City’s options regarding camping and sanctioned encampments. The Legislature is scheduled to adjourn on March 12, 2026. In order to fully understand what, if any, impacts the state may have on City policy options, Council’s review of these matters should be held after legislative adjournment. In accordance with the discussion which occurred at the January 20th Council meeting, all ARC meetings have been paused pending work session discussion. Staff Recommendation To address the broader citywide issues of camping and sanctioned encampments, Council as a whole should weigh in on these important matters to provide clear legislative direction to the City Manager through a work session to be held on April 7, 2026, from 5 p.m. to 6 p.m. in Council Chambers. Funding Overview: N/A Attachment(s): None February 3, 2026 I - 2 1 Date: February 3, 2026 To: City Council From: Nathan A. West, City Manager Kari Martinez-Bailey, City Clerk Subject: Ad Hoc Appointment Committees 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: On January 20, 2026, City Council adopted assignments for a variety of internal and external boards, committees, and commissions for 2026-2027. During the Council’s discussions on January 20, several issues were raised for follow-up at tonight’s meeting. City staff have provided background and recommendation on the Ad Hoc Appointment Committees for Council’s consideration. The City has several permanent boards, commissions, and committees that exist to advise the City Council and City Departments, including the Public Safety Advisory Board; Parks, Recreation and Facilities Commission; Planning Commission; Utility Advisory Committee; and the Lodging Tax Advisory Committee (all collectively referred to as the “Permanent Committees”.) In April 2024, the Council appointed a subcommittee to review in detail the ordinances governing the Permanent Committees. As the product of that work, the subcommittee reached consensus on a draft ordinance that was presented to the full Council on December 3, 2024, for first reading and discussion. Based on Council consensus, the draft ordinance was revised and passed on December 17, 2024, as Ordinance #3743. As provided in that ordinance, the process of appointing Permanent Committee members is directed by Chapter 2.25 PAMC. Specifically, the ordinance provides that an ad hoc appointment committee, the purpose of which is to recommend to the City Council the members of each Permanent Committee, be established for each of the five Permanent Committees. The five ad hoc appointment committees meet Summary: On January 20, 2026, City Council adopted assignments for a variety of internal and external boards, committees, and commissions for 2026-2027. During the Council’s discussions on January 20, several issues were raised for follow-up at tonight’s meeting. City staff have provided background and recommendation on the Ad Hoc Appointment Committees for Council’s consideration. Strategic Plan: This proposal directly aligns with Strategic Focus Area #1, specifically Goal C. Funding: N/A Recommendation: Approve the recommendations for the Ad Hoc Appointment Committees for 2026-2027 as detailed in the memo. February 3, 2026 I - 3 2 and review applicants for these Permanent Committees. The members of the ad hoc committee consist of up to three Council members, one member from the permanent committe e (other than the chair and selected by the committee chair), and one staff member from the City department that supports the permanent committee. All members are voting members. For 2024 and 2025, the same three Council members served on all five of the ad hoc appointment committees. This approach ensured continuity during the interview processes and made the challenging task of scheduling multiple interviews a much more streamlined process. Staff Recommendation: Based on the success of the interview and nomination process utilized in 2024 and 2025, staff suggest that Council members Carr, Miller and Schwab serve as the Council appointees to the five ad hoc appointment committees for 2026-2027. Funding Overview: N/A Attachment(s): None February 3, 2026 I - 4 1 Date: February 3, 2026 To: City Council From: Nathan A. West, City Manager Kari Martinez-Bailey, City Clerk Subject: Permanent Committee Liaisons 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: On January 20, 2026, City Council adopted assignments for a variety of internal and external boards, committees, and commissions for 2026-2027. During the Council’s discussions on January 20, several issues were raised for follow-up. City staff have provided background and recommendations on Permanent Committee Liaisons for Council’s consideration. The City has seven permanent boards, commissions, and committees that exist to advise the City Council and City Departments. They are the Civil Service Commission; LEOFF1 Disability Board, Public Safety Advisory Board; Parks, Recreation and Facilities Commission; Planning Commission; Utility Advisory Committee; and the Lodging Tax Advisory Committee (all collectively referred to as the “Permanent Committees”.) In April 2024, the Council appointed a subcommittee to review in detail the ordinances governing the Permanent Committees. As the product of that work, the subcommittee reached consensus on a draft ordinance that was presented to the full Council on December 3, 2024, for first reading and discussion. Based on Council consensus, the draft ordinance was revised and passed on December 17, 2024, as Ordinance #3743. The concept of assigning Council Liaisons broadly to each of the Permanent Committees was discussed by the subcommittee, however the final version of the ordinance passed by Council had a more limited role for Council Liaisons and is only applicable in specific instances. These limited circumstances are when City Council as a whole has a specific public policy issue/work plan item that it wishes to assign to Summary: On January 20, 2026, City Council adopted assignments for a variety of internal and external boards, committees, and commissions for 2026-2027. During the Council’s discussions on January 20, several issues were raised for follow-up at tonight’s meeting. City staff have provided background and recommendations on Permanent Committee Liaisons for Council’s consideration. Strategic Plan: This proposal directly aligns with Strategic Focus Area #1, specifically Goal C. Funding: N/A Recommendation: Approve City staff recommendation regarding Permanent Committee Liaisons for as detailed in the memo. February 3, 2026 I - 5 2 a Permanent Committee for review and recommendation. Additionally, Liaison opportunities do not apply to the Civil Service Commission. Finally, all boards with the exception of the Public Safety Advisory Board; Parks, Recreation and Facilities Commission and Planning Commission already have Council members incorporated as participating members. Please see PAMC 2.25.085 as follows (emphasis added): 2.25.085 – Work Plans for the Permanent Committees. A. Permanent Committee’s work that would lead to recommendations to City Council will follow state law requirements, municipal code requirements, an adopted work plan, or the Council-approved department workplan. Work plan items may originate from the City Council, the Permanent Committees, or from staff. 1. For work plan items originating from the City Council: a. The Council will direct the permanent committee to address the item and may appoint a member of Council to act as liaison to the board until the permanent committee has completed work on the item and prepared either a report or a recommendation for the Council. b. The Council liaison will attend the next meeting of the permanent committee to explain the work plan item. c. Once the permanent committee has completed its work on an item, the Chair or the Chair’s designee will present a report on that item to City Council. Staff Recommendation: Based on the final language of Ordinance #3743, Council Liaisons to Permanent Committees will be appointed on an as-needed basis to focus on ensuring specific public policy/work plan items are acted upon by a specific Permanent Committee. When the Council elects to direct a permanent committee to address an item, Council will appoint a member of Council to act as liaison to that Permanent Committee. The liaison will attend the next meeting of that Permanent Committee to explain the specific request/item. After the Permanent Committee has completed its work on the request/item, the Permanent Committee Chair will report on that request/item at the following City Council meeting. Funding Overview: N/A Attachment(s): None February 3, 2026 I - 6 1 Date: February 3, 2026 To: City Council From: Nathan A. West, City Manager Subject: Criminal Justice Update Relationship to Strategic Plan: The 2025–2026 Strategic Plan (Resolution 10-24), approved by the City Council on October 1, 2024, identifies community resilience as a core priority. This proposal advances Strategic Focus Area #1, Goal C, by promoting efficient practices that improve public safety and peace of mind. Background / Analysis: Prior to the current interlocal agreement, the City handled prosecution services in-house and had separate contracts for incarceration services and indigent defense. In 2015, at the invitation of the County, an interlocal agreement with the County was negotiated that consolidated criminal justice services at the County. Since then, the City has paid the County a fixed monthly fee for these services, which include prosecution, indigent defense, court, and incarceration services. Throughout 2025, City staff worked with Clallam County to obtain data and metrics to inform negotiations of a new interlocal agreement. This process included gathering, reviewing and calculating multiple years of data to accurately determine the costs of providing these services for each entity, to ensure a fair and equitable approach is taken, and that is affordable to our community. Due to the large amount of information to analyze and strong differences of opinion of the County’s estimated costs – it was determined that additional time was needed to reach a final agreement between the parties. Summary: In 2015, the City and the County entered into an interlocal agreement that consolidated criminal justice services. The agreement covers prosecution, court, indigent defense, and incarceration services. The interlocal agreement became effective in 2016 and was due to expire on December 31, 2025. On December 16, 2025, Council approved a six-month extension of the 2015 Interlocal Agreement for Criminal Justice services with Clallam County, while continuing to negotiate with the County to achieve a new, long-term interlocal agreement for criminal justice services. City staff are actively working with the County and criminal justice partners to address the myriads of issues needed for the successful continuation of services for the remainder of 2026 and beyond. To ensure an independent analysis of financial data, City staff are recommending the City hire a criminal justice consultant. Strategic Plan: Strategic Focus Area #1 – Goal C, Measures 2 and 3. Funding: The City planned $1,157,600 in the approved 2026 Budget for criminal justice services. Of this amount $903,420 has now been obligated for a six-month extension of the interlocal agreement with Clallam County. Funding needs for these services will be reviewed and identified for Budget adjustments once final negotiations are complete between the City and the County. In the meantime, funding for a consultant to assist with determining the correct cost allocations for these services will be utilized from the City’s General Fund reserves. Recommendation: Authorize the City Manager or their designee to contract for criminal justice consultant services in an amount not to exceed $75,000. February 3, 2026 I - 7 2 To prevent a gap in critical services, the City and County negotiated a six-month extension to the original agreement. This extension is set to expire on June 30, 2026, and retains all services included in the original agreement. City staff are actively working with the County and criminal justice partners to address the myriads of issues needed for the successful continuation of services for the rest of 2026 and beyond. These efforts include the following: 1.Ensuring the six-month extension was fully executed by all parties. 2.Submitting a Letter of Agreement to the County on several outstanding contractual items. 3.Establishing regular monthly meetings with County and City leadership to address key issues. 4.Convening internal City staff meetings each week to successfully manage the collaboration and negotiation process. 5.Evaluating outside consultation services to review projected/estimated costs and delivery models. Funding Overview: In 2025, the City paid the County $1,129,251 for criminal justice services, including prosecution, public defense, district court and jail services. The County believes these costs should have been $3,666,950, which is an additional $2.5M, or 225%. This amount is based on the methodology utilized by the County to calculate these costs and the City strongly disagrees with the County’s methodology. The amount that was included in the six-month extension included the 2025 payment of $1.1M, plus 25% of the $2.5M difference per the County’s calculations, as well as a 2.7% increase in accordance with the CPI-W. The extension also included language to reconcile once a final agreement was in place. City staff have worked diligently to ensure this agreement is fiscally responsible by identifying and removing costs that the County is legally obligated to pay per State Law regardless of contract agreements with other jurisdictions. Additionally, the County receives a Countywide sales tax that is collected within the Port Angeles city limits for criminal justice purposes and City staff are working to ensure these are properly accounted for prior to determining fair costs to the City. This approach is prudent to maintaining critical and essential services in the City’s Budget, such as Police, Fire, Parks and Street programs and services that would be heavily impacted by a $2.5M increase to the Budget for criminal justice services. A financial shift of this magnitude would require depletion of the City’s General Fund reserves and/or a major reduction in force across multiple departments. Attachment(s): None February 3, 2026 I - 8 Date: February 3, 2026 To: City Council From: Corey Delikat, Parks & Recreation Director Subject: Lease Extension Agreement with Port of Port Angeles Background / Analysis: In 2018, the City Parks & Recreation maintenance building was destroyed during a powerful windstorm that caused a large tree to fall on top of the 2,000 square foot maintenance building located on 1310 West 16th Street. Fortunately, no one was in the building. After the Parks Maintenance crew bounced around from several locations over a five-year period, the City finally found a site on another Port location to house the crew at 2602 W. 18th Street. This property includes a main warehouse (4,482 sq. ft.), detached office (480 sq. ft.), building (1,445 sq. ft.), a detached garage, and 167,871 sq. ft. of fenced in land space. This area finally allows plenty of room for staff to house all our Parks & Recreation’s vehicles, equipment, and materials in one safe location. The site also has much needed space that could be used to accommodate new plantings for City parks and City owned properties. Tonight, we are asking the Council to approve this three-year extension and authorize the City Manager to execute additional extensions until such time as the permanent home for Parks and Recreation operations is ready for occupancy. Funding Overview: The Lease Agreement between the City of Port Angeles and the Port of Port Angeles will be $7,142.67 per month, plus an annual CPI increase per year. This does not include utilities. Funds to cover the lease costs have been incorporated in the Parks and Recreation operations section of the 2026 Budget. Summary: Staff is recommending a three-year Lease Extension Agreement with the Port of Port Angeles to house the Parks Maintenance Staff at 2602 W. 18th Street, in Port Angeles. Funding: The Lease Agreement between the City of Port Angeles and the Port of Port Angeles will be $7,142.67 per month, plus an annual CPI increase per year. This does not include utilities. Funds to cover the lease costs have been incorporated in the Parks and Recreation operations section of the 2026 Budget Recommendation: 1) Approve and authorize the City Manager to sign a three-year Lease Extension Agreement with Port of Port Angeles in the yearly amount of $85,712.04, with applicable increases in line with CPI in accordance with the agreement, 2) authorize the City Manager to extend the lease as necessary until a permanent home for Parks and Recreation operations is ready for occupancy; and 3) allow the City Manager to make minor modifications to the agreement, if necessary. February 3, 2026 J - 1 2026 City Parks Dept. Commercial Lease (Rev 0) 1 COMMERCIAL LEASE THIS COMMERCIAL LEASE (“Lease”) is made and entered into as of the date last written below, by and between the PORT OF PORT ANGELES, a Washington municipal corporation (the “Port”), and CITY OF PORT ANGELES, a non-charter code city and Washington municipal corporation (“Lessee”) (individually “Party” and collectively “Parties”). ARTICLE I Summary of Lease Terms and Definitions The Port: Port of Port Angeles 338 W First Street Port Angeles, WA 98362 Lessee: City of Port Angeles 321 E. 5th Street Port Angeles, WA 98362 Premises: 6,407 square feet of buildings and 169,071 square feet of land located at 2602 W. 18th Street in Port Angeles, Washington as depicted in the Map of Premises attached to this Lease as Exhibit A. Lessee-owned Improvements: As of the Commencement Date as defined herein, the following fixtures and improvements are owned by Lessee and are not part of this Lease: None Initials: _______ _______ Port Lessee Use of Premises: Operations, offices, and equipment storage for the City of Port Angeles Parks & Recreation Department. Benefit to the Public: None. Commencement Date: February 1, 2026 Term: Three-Year Term. From February 1, 2026 through January 31, 2029. Extensions: Two (2) one-year extensions. [X] Requires Port consent, at Port’s sole discretion February 3, 2026 J - 2 2026 City Parks Dept. Commercial Lease (Rev 0) 2 Base Rent: This base rent includes annual consumer price index West Class B/C, an increase from September, 2025 of 3.5% to commence on February 1, 2026. Financial Security (see Section 5.4 for more information). Exempt- government agency. Additional Unique Terms and Conditions: None. ARTICLE II Premises, Term, Renewals 2.1 PREMISES: In consideration of the rents hereinafter reserved and of the covenants and conditions set forth herein to be performed by Lessee, the Port does hereby lease the Premises to Lessee. 2.2 TERM: The term of this Lease shall be for three (3) years beginning February 1, 2026 through January 31, 2029. If Lessee takes possession of the Premises before the Commencement Date, Lessee shall pay the pro rata rent for the period prior to commencement of the Lease term. 2.3 RENEWAL: Subject to the terms and conditions herein, Lessee may renew this Lease for two consecutive one-year (1) year periods by giving written notice of such intention to the Port at least ninety days (90) days prior to the expiration of the term of this Lease or any renewal thereof. It is a condition precedent to Lease Renewal that the Lessee be in good standing at the time of renewal and that Lessee is not in default under the terms of this Lease or any other lease or agreement with the Port. The terms and conditions of any renewal shall be generally the same as set forth in this Lease, provided however rent shall be recalculated as provided herein and the terms of this Lease shall be updated to be consistent with the terms and conditions of the existing Port’s Commercial Lease Agreement. All lease extensions and renewals shall be at the sole discretion of the Port unless previously authorized by the Commission. At the time of renewal, extension, exercising option, etc. the Lease will be reevaluated and brought up to fair market value. Lessee’s renewal is likewise subject to and contingent upon the Port’s acceptance of Lessee’s renewal notice, which the Port may withhold in its sole discretion. Failure of Lessee to give required notification may, at the discretion of the Port, result in the option(s) being null and void. Should the Port decline to accept Lessee’s renewal notice, this Lease will terminate upon the expiration of the then-existing term. Leased Area SF Base Rate Main Warehouse/Office 4,482 Detached Office Building 480 Detached Garage 1,445 Total Buildings 6,407 2,780.64$ Land 169,071 4,362.03$ 7,142.67$ WA Leasehold excise tax exempt Building and Land Monthly Base Rate February 3, 2026 J - 3 2026 City Parks Dept. Commercial Lease (Rev 0) 3 ARTICLE III Rent, Rental Adjustment 3.1 RENT: The term “Rent” as used herein includes Base Rent, Common Area Maintenance (“CAM”) Expenses (if any) as that term is defined herein below, applicable Washington State leasehold excise tax, consistent with RCW Chapter 82.29A relating to leasehold excise tax, and any subsequent revision or amendment thereto, and other fees and charges assessed herein. Base Rent and Washington State leasehold excise tax shall be paid without the requirement that the Port provide prior notice or demand, and shall not be subject to any countercl aim, setoff, deduction, defense or abatement. For any other fees and charges which may be assessed by the Port herein, the Port shall first provide written notice thereof, and Lessee shall pay such fees and/or charges within thirty (30) days of receipt of such written notice without any counterclaim, setoff, deduction, defense or abatement. 3.1.1 If Lessee fails to pay the required Rent as by this Lease, the Port shall charge late fees as outlined below. An administrative fee of $25 will be charged for each month a late or finance fee is charged: 3.1.1.1. 30 days nonpayment = late fee is charged. At the first of month after 30 days late: Late fee is 2% or $100, whichever is greater, of total outstanding Rent, leasehold tax (“LHT”), utilities and charges billed. 3.1.1.2 60 days nonpayment = late fee is charged. At the first of month after 60 days late: Late fee is 5% or $300, whichever is greater, of outstanding Rent, LHT, utilities, and charges billed. Eviction process will be initiated. 3.1.1.3 90 days nonpayment = late fee of 8% or $700 whichever is greater, of outstanding Rent, LHT, utilities, and charges billed and eviction will be enforced. 3.1.2 Base Rent Adjustment: The Port may, in its discretion, adjust the Base Rent hereunder upon the provision of written notice prior to the anniversary of the Commencement Date. Upon the provision of such notice, the rental rate shall be automatically adjusted effective upon the month of the anniversary of the Commencement Date, based on the previous month’s Consumer Price Index, to reflect the percentage change in the Consumer Price Index for All Items in West - Size Class B/C, All Urban Consumers, as issued by the U.S. Department of Labor, Bureau of Labor Statistics, or the closest comparable index if the above index is no longer published, over the last full 12-month period immediately preceding the anniversary of the Commencement Date for which such data are available. If the resulting rent rate adjustment is negative, then the rental rate shall not be decreased but shall remain the same as the preceding period. 3.2 COMMON AREAS: No Common Areas for this agreement. 3.2.1 Common Areas; Definition: The term “Common Areas” shall mean those areas in and around the Premises owned by the Port that are provided and designated by the Port from time-to-time for the general non-exclusive use of the Port, Lessee, other tenants of the Port, and/or the respective employees, suppliers, shippers, customers, clients, invitees and licensees of such Parties. Common Areas may include, but are not limited to, lobbies, hallways, common restrooms, electrical and mechanical areas, supply and janitorial rooms, exterior wall surfaces of the Premises walkways, driveways, parking areas, service areas, landscaped areas, and other Port owned areas February 3, 2026 J - 4 2026 City Parks Dept. Commercial Lease (Rev 0) 4 provided for the non-exclusive use of its tenants. The Port or its agents shall operate, manage, equip, light, repair, replace and maintain the Common Areas for their intended purpose at such times and in such manner as the Port shall reasonably determine. 3.2.2 Lessee’s Common Area Lease Rights: The Port hereby grants to Lessee, for the benefit of Lessee and its employees, suppliers, shippers, customers, clients and invitees during the term of this Lease, the non-exclusive right to use, in common with others entitled to such use, the Common Areas as they exist from time-to-time, subject to any rights, powers and privileges reserved by the Port under the terms hereof or under the terms of any rules, regulations or restrictions governing the use of the Common Areas. Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by prior written consent of the Port or the Port’s designated agent, which consent may be revoked at any time. In the event that such unauthorized storage shall occur, then the Port shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost to Lessee, which cost shall be payable on demand by the Port. 3.2.3 Changes to Common Areas: The Port shall have the right from time-to-time to make changes to the Common Areas, including, without limitation: (i) changes in the location, size, shape and number thereof; (ii) to temporarily close any of the Common Areas for maintenance and public purposes so long as reasonable access to the Premises remains available; (iii) to add additional improvements to the Common Areas; and (iv) to use Common Areas while engaged in making additional improvements, repairs or alterations to the Premises or any portion thereof, as the Port may, in the exercise of sound business judgment, deem appropriate. The Port shall nevertheless diligently perform construction, repair or maintenance work to minimize interruptions in the use of Common Areas. 3.2.4 Common Area Maintenance Expenses; Definition: The term “Common Area Maintenance Expenses” or “CAM Expenses” as used herein shall mean the sum of the costs and expenses incurred by the Port with respect to maintenance, upkeep and repair of and to the Common Areas. 3.2.5 Payment of CAM Expenses: Deleted paragraph. 3.2.6 Adjustment of CAM Expenses: Each year of this Lease or renewal term (as the case may be), the Port will establish an estimate of a year’s total CAM Expenses, and Lessee shall pay Lessee’s Pro Rata Share on a monthly basis in accordance with the monthly rental payment obligations set forth in Section 3.1 of this Lease. Within sixty (60) days after the expiration of each Lease year, the Port shall deliver to Lessee a reasonably detailed statement showing Lessee’s Pro Rata Share of the actual total of CAM Expenses incurred during the preceding year. If Lessee’s payments under this Paragraph during the preceding year were less than Lessee’s Pro Rata Share as indicated on said statement, Lessee shall pay to the Port the amount of the deficiency within thirty (30) days after delivery by the Port to Lessee of said statement; any overpayment made by Lessee shall be credited toward Lessee’s liability for Rent for succeeding months. 3.3 ABATED RENT: If this Lease provides for a postponement of any monthly rental payments or other rent concession, such postponed rent is called the “Abated Rent.” Lessee shall February 3, 2026 J - 5 2026 City Parks Dept. Commercial Lease (Rev 0) 5 be credited with having paid all of the Abated Rent on the expiration of the term of this Lease only if Lessee has fully, faithfully and punctually performed all of Lessee’s obligations hereunder, including the payment of all Rent, including, if applicable, Abated Rent, and all other monetary obligations and the surrender of the Premises in the condition required by this Lease. If Lessee defaults and does not cure within any applicable grace period, the Abated Rent shall immediately become due and payable in full and this Lease shall be enforced as if there were no such rent abatement or other rent concession. In such case, Abated Rent shall be calculated based on the full initial rent payable under this Lease, plus interest thereon at the rate of twelve percent (12%) per annum from date each monthly rental payment was postponed. 3.4 LEASEHOLD AND OTHER TAXES: Throughout the term of this Lease, Lessee shall be liable for, and shall pay or, as applicable, reimburse the Port for, all license fees and excise and occupation taxes covering the business conducted on the Premises, all taxes on property of Lessee on the Premises, ad valorem taxes or taxes levied in lieu of an ad valorem tax, and any taxes on the leasehold interest created by this Lease and/or measured by the rent payments hereunder, whether imposed on Lessee or on the Port. With respect to the leasehold excise tax payable hereunder, Lessee shall pay to the Port with each rent payment an amount equal to the tax. All other tax amounts for which the Port is or will be entitled to reimbursement from Lessee shall be paid by Lessee to the Port at least fifteen (15) days prior to the due dates of the tax amounts involved, provided that Lessee shall be given at least ten (10) days’ prior written notice of the amounts payable by Lessee. ARTICLE IV Use of Premises, Condition of Property, Improvements, Removal of Property, Maintenance, and Utilities 4.1 LESSEE’S USE OF THE PREMISES: Lessee shall conduct only the following activity on the Premises: Operations, offices, and equipment storage for the City of Port Angeles Parks & Recreation Department (the “Authorized Use”) and such additional uses incidental or otherwise related to such Authorized Use. 4.1.1 Lessee shall be in default under this Lease if it: (i) ceases conducting the Authorized Use for any period of time exceeding one hundred twenty (120) consecutive days; or (ii) conducts any other business or activity on the Premises without first obtaining the Port’s consent, in the Port’s sole discretion, which shall be evidenced by a validly executed written Lease modification. In conducting the Authorized Use, Lessee shall properly and fairly serve the public, providing reasonable hours of operation, and reasonably suitable service. 4.1.2 Notwithstanding the foregoing described use, the Premises shall not be used to store, distribute or otherwise handle flammable, dangerous or hazardous materials, excepting only those necessary to conduct the Authorized Use. At the request of the Port, Lessee shall provide a list of all flammable, dangerous or hazardous materials stored or used on the Premises. 4.2 ACCEPTANCE OF PREMISES: Lessee accepts the Premises, including all existing improvements thereon, “as is” without further maintenance liability on the part of the Port, except as otherwise specifically noted herein. Lessee is not relying on any representations of the Port as February 3, 2026 J - 6 2026 City Parks Dept. Commercial Lease (Rev 0) 6 to condition, suitability, zoning restrictions or usability, except the Port’s right to grant a lease of the Premises. 4.3 CONSTRUCTION OF TENANT IMPROVEMENTS: Lessee shall abide by the following terms with regard to making any tenant improvements on the Premises (“Tenant Improvements”): 4.3.1 Subject to obtaining the Port’s written approval, Lessee may make and install, at its own expense, such Tenant Improvements as are normal and customary in connection with the Authorized Use set forth herein. Lessee’s contractor, if any, shall be subject to the Port’s approval, not unreasonably withheld. The Port reserves the right to condition its approval upon Lessee providing payment and/or performance bonds satisfactory to the Port. Lessee shall submit plans to and obtain written approval from the Port before commencing any Tenant Improvements. The Port shall have a reasonable period of time to review such plans prior to issuing a decision. Upon the provision of written notice to Lessee that the Port’s review of plans will require extraordinary staff review time, the Port may charge Lessee a reasonable pre-established fee for staff, consultant or attorney time required to review the plans. All Tenant Improvements which are to be designated fixtures shall be so designated by the Port upon the Port’s approval of the plans for such improvements. Unless otherwise agreed, all improvements by Lessee shall conform to the requirements of the Americans with Disabilities Act of 1990, 42 U.S.C. §12101 et seq. (the “ADA”). 4.3.2. Return on Investment. All Tenant Improvements completed by the Port at its expense will require a return on investment of not less than the Port’s expense paid by the Lessee receiving the benefit from said Tenant Improvement. 4.3.3. A payback schedule for the Tenant Improvement costs will be determined by the Port on a case-by-case basis. 4.3.4. All Tenant Improvements will have a scheduled return on investment until the Port’s expense and overhead associated with the Tenant Improvement is reimbursed by Lessee. 4.3.5 Unauthorized Improvements: Any Tenant Improvements made on the Premises without the Port’s prior written consent or which are not in conformance with the plans submitted to and approved by the Port (“Unauthorized Improvements”) shall be subject to removal by Lessee at Lessee’s expense upon sixty (60) days’ written notice from the Port. 4.4 TITLE TO LESSEE IMPROVEMENTS, FIXTURES AND PERSONAL PROPERTY AT LEASE TERMINATION: Except as otherwise provided in the description of the Premises in Article I above, as of the Commencement Date, all existing structures, buildings, installations, and improvements of any kind located on the Premises are owned by and title thereto is vested in the Port. Prior to Lease Termination, Lessee shall remove the following from the Premises: a. All equipment; b. All personal property; February 3, 2026 J - 7 2026 City Parks Dept. Commercial Lease (Rev 0) 7 c. All Lessee Improvements not designated as Fixtures in Article I above or pursuant to Section 4.3.1 above. Initials: _______ _______ Port Lessee 4.4.1 If Lessee removes any part of a structure, including the items listed above (“Removal Items”), from the Premises, it shall be obligated to remove all thereof, except such portions as the Port may desire to leave remaining, including the foundation. The Lessee will correct any environmental issues. The Port may require Lessee to remove all or any portion of the Removal Items from the Premises, upon the Port’s written notification to Lessee within 30 days of the expiration of this Lease. In the event any Removal Items are removed by Lessee, Lessee shall restore the Premises to the condition they were in prior to their construction. 4.4.1 If any of the Removal Items are not removed from the Premises by Lease Termination or when the Port has the right of re-entry, then the Port may, at its sole option, elect any or all of the following remedies: a. Upon the expiration of thirty (30) days’ written notice to Lessee that Removal Items remaining on the Premises are required to be removed therefrom by Lessee, if Lessee has not completed the removal, the Port may remove any or all of the Removal Items and dispose of them without liability to Lessee, and at Lessee’s cost. The Port shall not be required to mitigate its damages, to dispose of the Removal Items in a commercially reasonable manner, or to make any effort whatsoever to obtain payment for such items. Lessee agrees to pay the Port’s costs and damages associated with Lessee’s failure to remove such Removal Items, including, but not limited to, the following: storage, demolition, removal, transportation and lost rent (collectively “Disposal Costs”); provided, however, that any net proceeds recovered by the Port in excess of its Disposal Costs will be deducted from Lessee’s financial obligation set forth herein. Lessee’s financial obligations herein shall survive the termination of this Lease; and or b. Claim and take title in the Port to any or all Removal Items, however, the Port retains the option to decline ownership at Lease termination; and/ or c. Commence suit against Lessee for damages or for specific performance. 4.4.2 During any period of time employed by Lessee under this Section to remove Removal Items including structures, buildings, installations, improvements, machines, appliances, equipment and trade fixtures, Lessee shall continue to pay a rent due and all other fees or expenses due and owing to the Port in accordance with this Lease on a prorated daily basis. 4.4.3 The foregoing remedies are cumulative, and the Port shall not be required to elect its remedies. The Port and Lessee hereby acknowledge the rights, obligations and remedies set forth in this Section 4.4. Initials: _______ _______ Port Lessee February 3, 2026 J - 8 2026 City Parks Dept. Commercial Lease (Rev 0) 8 4.5 MAINTENANCE OF PREMISES: The maintenance and repair of the Premises are the sole responsibility of Lessee, except as set forth in the Maintenance Inclusion List attached hereto as Exhibit B and incorporated herein by this reference; PROVIDED, however, that the Port shall be responsible for repairing at its own cost any interior damage resulting from a roof leak. Lessee shall notify the Port immediately upon discovering any indication of a roof leak. Lessee shall maintain the Premises in good condition, and shall repair all damage caused by Lessee, its employees, agents, licensees, invitees or anyone on the Premises as a result of Lessee’s activities. In lieu of common area maintenance charges, Lessee’s exterior Premises maintenance and repair responsibilities include, without limitation and by way of example only, mowing, general landscape maintenance, snow removal, parking lot sweeping, parking lot striping, and parking lot, curb and sidewalk repairs. The Port and Lessee specifically acknowledge and agree that the Port has no responsibility to maintain, repair or replace the Lessee-owned Improvements described in Article I above. Initials: _______ _______ Port Lessee 4.6 UTILITIES AND SERVICES: Lessee shall be liable for and shall pay throughout the term of this Lease all charges for all utility services furnished to the Premises, including but not limited to, light, heat, gas, janitorial services, garbage, disposal, security, electricity, water, stormwater and sewerage, including any connection fees and any fire protection, police protection, or emergency health services as furnished by local authorities and as may be the subject of a contract between the Port and such local authorities or as imposed by ordinance or statute. The Lessee will ensure all utility services are transferred to their name upon commencement of this agreement. If the Premises are part of a building or part of any larger Premises to which any utility services are furnished on a consolidated or joint basis, Lessee agrees to pay to the Port Lessee’s pro-rata share of the cost of any such utility services. Lessee’s pro-rata share of any such services may be computed by the Port on any reasonable basis, and separate metering or other exact segregation of cost shall not be required. At the conclusion of this Lease, Lessee shall arrange for such utility services to be terminated and for the final bill to be sent to Lessee. Lessee shall be liable for all utility charges that accrue if it fails to so terminate services. 4.7 COMPLIANCE WITH PORT REGULATIONS AND WITH ALL LAWS: 4.7.1 Lessee agrees to take reasonable action to comply with all applicable rules and regulations of the Port pertaining to the Premises now in existence or hereafter promulgated for the general safety and convenience of the Port, its various lessees, invitees, licensees and the general public upon receipt of notice of the adoption of such regulations. 4.7.2 Lessee agrees to comply with all applicable federal, state and municipal laws, ordinances, and regulations, including without limitation those relating to environmental matters. Any fees for any inspection of the Premises during the Lease term by any federal, state or municipal officer related to Lessee use and occupancy of the Premises and the fees for any so-called “Certificate of Occupancy” shall be paid by Lessee. February 3, 2026 J - 9 2026 City Parks Dept. Commercial Lease (Rev 0) 9 ARTICLE V Insurance and Financial Security 5.1 CASUALTY LOSS OF LESSEE: The Parties hereto agree that the Port shall not be responsible to Lessee for any property loss or damage done to Lessee’s property, whether real, personal or mixed, occasioned by reason of any fire, storm or other casualty whatsoever. It shall be Lessee’s responsibility to provide its own protection against casualty losses of whatsoever kind or nature, regardless of whether or not such loss is occasioned by the acts or omissions of the Port, Lessee, third party, or act of nature. To this end, the Port and Lessee hereby waive any rights each may have against the other as a result of any injury, loss or damage which is then insured against by either. This waiver is effective only to the extent that the insurance company(ies) actually pay(s) for such injury, loss or damage. In addition, the Port and Lessee agree to (1) cause their respective insurance companies to waive any right of subrogation, and (2) provide proof to the other Party within thirty (30) days after the execution of this Lease that such waivers have been successfully obtained from the respective insurance companies (if such proof is not provided within this thirty (30) day period, the other Party shall have the right to declare this paragraph to be ineffective). This paragraph shall be inapplicable if it would have the effect, but only to the extent that it would have the effect, of invalidating any insurance coverage of the Port or Lessee. 5.2 INSURANCE: 5.2.1 Liability: Lessee shall procure and maintain during the term of this Lease and any extensions or renewals of this Lease a comprehensive general liability policy covering on an occurrence basis all claims for personal injury (including death) and property damage (including all real and personal property located on the Premises) arising on the Premises or arising out of Lessee’s operations. This policy shall also include contractual liability coverage for all indemnities provided under this Lease. Limit per occurrence shall not be less than $1,000,000, or the equivalent. General aggregate limit shall not be less than $2,000,000, when applicable (and will be endorsed to apply separately to each site or location.) Limit per claim and in the aggregate shall not be less than $1,000,000, or the equivalent. Annual aggregate limit shall not be less than $2,000,000. 5.2.2 Property: Lessee shall procure and maintain during the term of this Lease and any extensions or renewals of this Lease fire and extended coverage property insurance for physical loss and damage, written on an “all risks” basis excluding earthquake and flood insurance, to the Leased Premises and to all Lessee-owned improvements, with the Port named as a loss payee. Such policy or policies shall be written in the form of replacement cost insurance in an amount not less than 100% of the full replacement value, which amount shall be adjusted not less frequently than annually. The proceeds of such insurance in case of loss or damage shall be first applied on account of the obligation of the Port to repair and/or rebuild the Leased Premises to the extent that such proceeds are required for such purpose. Lessee shall also procure and maintain during the term of this Lease and any extensions or renewals of this Lease business interruption insurance by which Rent will be paid to the Port for a period of up to one (1) year if the Premises are destroyed or rendered inaccessible due to Lessee negligence by a risk insured against by a policy of fire and extended coverage property insurance, with vandalism and malicious mischief endorsements. February 3, 2026 J - 10 2026 City Parks Dept. Commercial Lease (Rev 0) 10 5.2.6 Verification of Coverage: For each insurance policy required herein, Lessee shall provide to the Port, prior to Lessee’s occupancy of the Premises, original certificates of insurance, all required amendatory endorsements establishing coverage required under this Lease, a copy of each policy declarations and endorsements page, and complete copies of each policy. Provided, the Port’s failure to obtain the required documents prior to Lessee’s occupancy shall not be deemed a waiver of Lessee’s obligation to provide them. Receipt of such certificate or policy by the Port does not constitute approval by the Port of the terms of such policy. 5.2.7 Additional Insured; Primary Coverage; Non-Contributory: For any claims related to this Lease, Lessee’s insurance coverage shall be primary insurance coverage as to the Port, and any proceeds paid to Lessee pursuant to said coverage shall be payable to thePort . Any insurance or self-insurance maintained by the Port shall be excess of Lessee’s insurance and shall not contribute with it. 5.2.8 Changes in Coverage Requirements: The Port reserves the right to modify any insurance requirements set forth herein, including limits, at the same time as revaluation of the annual Rent, as a condition of approval of assignment or sublease of this Lease, upon any breach of the environmental liability provision herein, upon a material change in the condition of any improvements, upon a change in the Authorized Use, or under other special circumstances as determined by the Port. Lessee shall obtain new or modified insurance coverage within thirty (30) days after changes are required by the Port. 5.2.9 Substitute Coverage: If Lessee fails to procure and maintain any insurance required herein, the Port shall have the right, but not the obligation, to procure and maintain substitute insurance and to pay the premiums, chargeable to Lessee. Lessee shall pay to the Port upon demand the full amount paid by the Port. 5.2.10 Negligence of Lessee: Each insurance policy required herein shall expressly provide that the insurance proceeds of any loss will be payable notwithstanding any act or negligence of Lessee which might otherwise result in a forfeiture of said insurance. 5.2.11 Self-Insured Retentions: If Lessee is self-insured, self-insured retentions must be declared to and approved by the Port. At the Port’s option, either (i) Lessee shall obtain coverage to reduce or eliminate such self-insured retentions as respects the Port; or (ii) Lessee shall provide a financial guarantee satisfactory to the Port guaranteeing payment of losses and related investigation, claim administration and defense expenses. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or the Port. 5.2.12 Acceptability of Insurers: All insurance required herein shall be placed with insurers authorized to conduct business in the state of Washington with a current A.M. Best’s rating of no less than A-VII, unless otherwise specifically authorized by the Port. 5.2.13 Notice of Cancellation: Each insurance policy required herein shall expressly provide that coverage shall not be canceled or changed except with prior written notice to the Port of no less than thirty (30) days. Lessee shall provide the Port with any revised endorsements, policy declarations and endorsements pages, and policies as soon as practicable after any changes February 3, 2026 J - 11 2026 City Parks Dept. Commercial Lease (Rev 0) 11 are made to any policy. 5.2.__ Protection and Indemnity: Lessee shall procure and maintain during the term of this Lease and any extensions or renewals of this Lease Protection and Indemnity Insurance, in an amount not less than $1,000,000, and Hull and Machinery Coverage, for any vessel owned by Lessee. 5.2.__ Automobile Liability: Lessee shall procure and maintain an Automobile Liability policy covering all owned, not-owned and hired automobiles. The limits of liability shall be not less than $1,000,000.00. The foregoing insurance policy shall name the Port as an additional insured. 5.3 WAIVER OF SUBROGATION: The Port and Lessee hereby mutually release each other from liability and waive all right of recovery against each other for any loss from perils insured against under their respective insurance contracts including any extended coverage endorsements thereto provided that this paragraph shall be inapplicable to the extent it would have the effect of invalidating any insurance coverage of the Port or Lessee. Each Party agrees to cause their respective insurance carriers to include in its policies a waiver of subrogation clause or endorsement. 5.4 FINANCIAL SECURITY: 5.4.1 In compliance with the requirements of RCW 53.08.085 (as presently codified or hereafter amended) and other laws of the State of Washington, Lessee agrees it will secure its performance of all obligations under this Lease by procuring and maintaining, during the term of this Lease, a corporate surety bond (the “Bond”), or by providing other financial security (“Security”) satisfactory to the Port, in an amount totaling: ✓ Other: Waived due to government entity. 5.4.2 The Security, if a Bond, shall be in a form and issued by a surety company acceptable to the Port and shall comply with the requirements of Washington law. Lessee shall obtain such Bond and forward evidence thereof to the Port or shall provide to the Port such other financial security as may be required hereunder, within thirty (30) days of execution of this Lease, but in no event later than the Commencement Date of this Lease. Such Security shall be kept in effect during the term of this Lease. 5.4.3 If the Security amount required hereunder is to be not less than 100% of the sum of annual Rent, that Security amount is subject to increases to reflect any Base Rent adjustments as provided in Article 3 above. In that event, at no time may the Security amount be less than 80% of the then-current annual Rent, and the Port may at any time require Lessee to provide sufficient additional Security to restore the Security amount to no less than 100% of the then-current total annual Rent due hereunder. No future amendment or extension to this Lease shall be effective until the adjusted financial Security amount has been provided as required. 5.4.4 Upon any default by Lessee in its obligations under this Lease and Lessee’s failure to cure such default in accordance with its rights to do so under this Lease, the Port may collect on February 3, 2026 J - 12 2026 City Parks Dept. Commercial Lease (Rev 0) 12 the Bond or Security to offset the liability of Lessee to the Port. Collection on the Bond or Security shall not relieve Lessee of liability for any amounts not offset by the amount collected, shall not limit any of the Port’s other remedies, and shall not reinstate or cure the default or prevent termination of the Lease because of the default. 5.4.5 Any Bond or Security may provide for termination on the anniversary date thereof upon not less than one (1) year's written notice to the Port if the Lease is not in default at the time of said notice. In the event of any such termination, Lessee shall obtain a new Bond or Security , also subject to the Port approval, to replace the Security being so terminated to be effective on or before the date of termination. 5.4.6 If the Port Commission exercises its discretion pursuant to RCW 53.08.085 to reduce or waive Lessee’s Security requirement under this Lease, the Port may at any time make a determination that changes in the material circumstances related to Lessee no longer support such reduction or waiver, and thereafter increase Lessee’s Security requirement up to that required by RCW 53.08.085, or such amount as determined by the Port Commission. ARTICLE VI Environmental Liability 6.1 ENVIRONMENTAL INDEMNIFICATION: Lessee shall defend (with legal counsel suitable to the Port), indemnify and hold the Port harmless from any and all claims, demands, judgments, orders or damages resulting from Hazardous Substances on the Premises caused in whole or in part by the activity of Lessee, its agents or subtenants during any period of time that Lessee has occupied all or a portion of the Premises during the term of this Lease or any previous lease or agreement. The term “Hazardous Substances” as used herein shall mean any substance heretofore or hereafter designated as hazardous under the Resource Conservation and Recovery Act, 42 USC Sec. 6901 et seq.; the Federal Water Pollution Control Act, 33 USC Sec. 1257 et seq.; the Clean Air Act, 42 USC Sec. 2001 et seq.; the Comprehensive Environmental Response Compensation and Liability Act of 1980, 42 USC Sec. 9601 et seq.; or the Hazardous Waste Cleanup-Model Toxic Control Act, RCW 70.105D, all as amended and subject to all regulations promulgated there under. 6.1.1 Lessee’s defense and indemnity obligations under this article are unconditional, shall not be discharged or satisfied by the Port’s re-entry of the Premises or exercise of any other remedy for Lessee’s default under this Lease, shall continue in effect after any assignment or sublease of this Lease, and shall continue in effect after the expiration or earlier termination of this Lease. 6.1.2 Although Lessee will not be liable for any Hazardous Substances that existed on the Premises prior to commencement of its leasehold relationship with the Port (whether by this Lease or any prior lease agreements), Lessee shall be responsible for the costs of any environmental investigations or remediation arising from any development or use of the Premises by Lessee, and Lessee hereby releases the Port from any contribution claim for those costs. By way of example only, if Lessee excavates soil on the Premises which contains Hazardous Substances, then Lessee will be responsible for the cost associated with disposing of those disturbed soils. February 3, 2026 J - 13 2026 City Parks Dept. Commercial Lease (Rev 0) 13 6.2 CURRENT CONDITIONS AND DUTY OF LESSEE: The Port makes no representation about the condition of the Premises. Hazardous Substances may exist in, on, under or above the Premises. Lessee should, but is not required to, conduct environmental assessments or investigations of the Premises prior to or during this Lease to determine the existence, scope and location of any Hazardous Substances. If there are any Hazardous Substances in, on, under or above the Premises as of the Commencement Date, Lessee shall exercise the utmost care with respect to the Hazardous Substances, the foreseeable acts or omissions of third parties affecting the Hazardous Substances, and the foreseeable consequences of those acts or omissions. 6.2.1 Prior to conducting any environmental investigation of the subsurface of the Premises, Lessee shall provide prior written notice to the Port. Lessee shall provide the Port with the results of all such investigations. 6.3 NOTIFICATION AND REPORTING: Lessee shall immediately notify the Port if Lessee becomes aware of any of the following: a. A release or threatened release of Hazardous Substances in, on under or above the Premises, any adjoining property, or any other property subject to use by Lessee in conjunction with its use of the Premises; b. Any problem or liability related to or derived from the presence of any Hazardous Substance in, on under or above the Premises, any adjoining property or any other property subject to use by Lessee in conjunction with its use of the Premises; c. Any actual or alleged violation of any federal , state or local statute, ordinance, rule, regulation or other law pertaining to Hazardous Substances with respect to the Premises, any adjoining property, or any other property subject to use by Lessee in conjunction with its use of the Premises; or d. Any lien or action with respect to any of the foregoing. 6.3.1 Lessee shall, at the Port’s request, provide the Port with copies of any and all reports, studies or audits which pertain to environmental issues or concerns and to the Premises, and which are or were prepared by or for Lessee and submitted to any federal, state or local authorities pursuant to any federal, state or local permit, license or law. These permits include, but are not limited to, any National Pollution Discharge and Elimination System permit, any Army Corps of Engineers permit, any State Hydraulics permit, any State Water Quality certification, or any Substantial Development permit. 6.3.2 Upon expiration or sooner termination of this Lease, Lessee shall remove from the Premises any soils or other media impacted by Hazardous Substances where such materials were deposited on the Premises by Lessee or its employees, representatives or agents. Any failure to complete such removal by the expiration or sooner termination of this Lease, and upon the expiration of thirty (30) days’ notice that such materials remain on the Premises, Lessee shall be deemed a holding over by Lessee subject to the provision of Section 7.21 (HOLDING OVER). Lessee shall represent and warrant that, upon termination of the Lease, all Hazardous Substances February 3, 2026 J - 14 2026 City Parks Dept. Commercial Lease (Rev 0) 14 that Lessee is required to remove from the Premises pursuant to this subsection have been removed from the Premises. ARTICLE VII Miscellaneous Provisions 7.1 LESSEE WILL OBTAIN PERMITS: Lessee agrees to obtain and comply with all necessary permits for any Authorized Use or leasehold improvement. If Lessee fails to obtain and comply with such permits, then Lessee accepts full responsibility for any and all resulting costs incurred by the Port, including actual attorneys’ fees. In this way, Lessee agrees to be solely responsible for all damages, costs and expenses incurred as a result of Lessee’s failure to fully comply with any necessary permit process and requirements. 7.2 LIENS: Lessee agrees to keep the Premises free and clear of all liens and charges whatsoever. Lessee shall not allow any mechanics’ and materialmen’s or other liens to be placed upon the Premises. If such a lien is placed or recorded, Lessee shall cause it to be discharged of record, at its own expense, within thirty (30) days of the Port’s demand. Failure to comply with the Port’s demand within thirty (30) days shall be a default under the terms of this Lease. Notwithstanding the foregoing, the Port acknowledges that Lessee may use its Tenant Improvements as security for a loan, and the Port agrees to reasonably cooperate with Lessee and its creditor(s) to allow such creditor(s) to obtain such security. 7.3 INDEMNIFICATION AND HOLD HARMLESS: The Port, its employees and/or agents shall not be liable for any injury (including death) to any persons or for damage to any property regardless of how such injury or damage be caused, sustained or alleged to have been sustained by Lessee or by others as a result of any condition (including existing or future defects in the Premises) or occurrence whatsoever related in any way to the Premises and the areas adjacent thereto or related in any way to Lessee’s use or occupancy of the Premises and of the areas adjacent thereto. Lessee agrees to defend and to hold and save the Port (including its commissioners, employees and/or agents) harmless from all liability or expense (including attorneys ’ fees, costs and all other expenses of litigation) in connection with any such items of actual or alleged injury or damage except such injury or damage as shall have been caused by the sole negligence of the Port. Lessee specifically agrees that any bond or other security provided pursuant to any provisions of this Lease shall extend to the indemnity agreed to herein. Lessee acknowledges that it expressly and specifically waives immunity under the industrial insurance statute of the state of Washington, Title 51 RCW, for purposes of this indemnification provision and further acknowledges that this waiver was mutually negotiated by the Parties. Each Party’s obligations under this section shall survive the expiration or other termination of this Lease. 7.4 LAWS AND REGULATIONS: Lessee agrees to conform to and abide by all applicable rules, codes, laws, regulations and Port policies in connection with its use of the Premises and the construction of improvements and operation of Lessee’s business thereon and not to permit said Premises to be used in violation of any applicable rule, code, law, regulation, Port policy, or other authority. 7.4.1 Lessee’s obligations herein shall include, but in no way be limited to, the obligation to comply with all State and Federal environmental laws and regulations. February 3, 2026 J - 15 2026 City Parks Dept. Commercial Lease (Rev 0) 15 7.5 WASTE AND REFUSE: Lessee agrees not to allow conditions of waste and refuse to exist on the Premises and to keep the Premises in a neat, clean and orderly condition and to be responsible for all damages caused to the Premises by Lessee, its agents, or any third party on the Premises. 7.6 DAMAGE AND DESTRUCTION: 7.6.1 Port Owned Buildings/Improvements: Except as otherwise stated herein, should the Premises be partially damaged by fire or other casualty, or rendered partially unfit for use by reason of fire or other casualty, the Premises shall be repaired with due diligence by the Port, and in the meantime the Rent (as defined in Section 3.1 above) shall be abated in the same proportion that the untenantable portion of the Premises bears to the whole thereof, for the period from the occurrence of the damage to the completion of the repairs. Lessee shall cooperate fully in obtaining and making available proceeds of insurance provided by Lessee in furtherance of such repairs. 7.6.2 Lessee Owned Buildings/Improvements: Lessee represents that it is a member of a municipal self-insurance pool. Lessee, at no expense to the Port, shall maintain membership in the Washington Cities Insurance Authority self-insured coverage pool as a city member. Lessee shall provide proof of membership in the Washington Cities Insurance Authority self -insured coverage pool and the minimum limits provided by such membership. Lessee shall provide the Port notice of its intention to repair or restore the Premises within sixty (60) days after the damage or loss occurs. Such work of repair or restoration shall be commenced within one hundred twenty (120) days after the damage or loss occurs and shall be completed with due diligence but not longer than one (1) year, if possible, or as soon thereafter as is reasonably possible after such work is commenced, and such work shall be otherwise done in accordance with the requirements of the provisions hereof pertaining to the construction of improvements upon the Premises. All insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration, or if Lessee elects not to repair or restore, to the cost of removing, demolishing, or clearing off the building or improvements. If (i) there are not insurance proceeds, or (ii) the same shall be insufficient for said purpose, Lessee shall make up the deficiency out of its own funds. Should Lessee fail or refuse to make the repair, restoration or removal as hereinabove provided, then in such event said failure or refusal shall constitute a default under the covenants and conditions hereof, and all insurance proceeds so collected shall be forthwith paid over to and be retained by the Port on its own account, and the Port may, but shall not be required to, sue and apply the same for and to the repair, restoration or removal of said improvements, and the P ort may, at its option, terminate this Lease as elsewhere provided herein. 7.6.3 Except as otherwise stated herein, should the Premises be completely destroyed by fire or other casualty, or should they be damaged to such an extent that the Premises are rendered wholly unfit for their accustomed uses, the Port shall have the option to terminate this Lease on thirty (30) days’ notice, effective as of any date not more than thirty (30) days after the occurrence. In the event that this Section shall become applicable, the Port shall advise Lessee within thirty (30) days after the happening of any such damage whether the Port has elected to continue the Lease in effect or to terminate it. If the Port shall elect to continue this Lease, it shall commence and prosecute with due diligence any work necessary to restore or repair the Premises. If the Port February 3, 2026 J - 16 2026 City Parks Dept. Commercial Lease (Rev 0) 16 shall fail to notify Lessee of its election within said thirty (30) day period, the Port shall be deemed to have elected to terminate this Lease, and the Lease shall automatically terminate thirty (30) days after the occurrence of the damage. For the period from the occurrence of the damage to the Premises as described in this Section to the date of completion of the repairs to the Premises (or to the date of termination of the Lease if the Port shall elect not to restore the Premises), Rent due hereunder shall be abated in the same proportion as the untenantable portion of the Premises bears to the whole thereof. 7.7 SIGNS: Lessee may place in or upon the Premises only such signs as are related to the Authorized Use of the Premises, PROVIDED that Lessee shall first obtain Port’s written consent as to size, location, materials, method of attachment, and appearance. Lessee shall install any approved signs at Lessee’s sole expense and in compliance with all applicable laws, ordinances, rules and regulations. Lessee shall not damage or deface the Premises in installing or removing signs and shall repair any damage to the Premises caused by such installation or removal. 7.8 ATTORNEYS’ FEES AND COURT COSTS: In any litigation, arbitration, or other proceeding by which one Party either seeks to enforce its rights under this Lease (whether in contract, tort, or both) or seeks a declaration of any rights or obligations under this Lease, the prevailing Party shall be awarded its reasonable attorney fees, and costs and expenses incurred. 7.9 ASSIGNMENT OF LEASE: Lessee shall not assign, rent or sublease any portions of this Lease or any extension thereof, without the prior written consent of the Port, in its sole discretion and upon such conditions as the Port may require, including those set forth herein, no rights hereunder in or to said Premises shall pass by operation of law or other judicial process, or through insolvency proceedings. Otherwise, the rights and obligations hereof shall extend to and be binding upon their respective successors, representatives and assigns, as the case may be. Lessee shall furnish the Port with copies of all such proposed assignment, sublease or rental documents. For the purposes of this Lease, any change of ownership including sale, liquidation or other disposition of some or all of the corporate stock or limited liability company units will be considered an assignment. Should the Port consent to an assignment made by Lessee for the purposes of obtaining a loan or other consideration from a third party, then the Port’s consent shall be made in accordance with the consent to assignment document used by the Port for these specific assignments. A copy of this consent form shall be provided by the Port upon request of Lessee. 7.9.1 If the Port refuses to consent to an assignment, Lessee’s sole remedy shall be the right to bring a declaratory action to determine whether the Port was entitled to refuse such assignment under the terms of this Lease. 7.9.2 No consent by the Port to any assignment or sublease shall be a waiver of the requirement to obtain such consent with respect to any other or later assignment or sublease. Acceptance of Rent or other performance by the Port following an assignment or sublease, whether or not the Port has knowledge of such assignment or sublease, shall not constitute consent to the same nor a waiver of the requirement to obtain consent to the same. 7.9.3 A minimum handling and transfer fee (“Transfer Fee Deposit”) of Three Hundred Dollars ($300.00) shall be payable by Lessee to the Port if Lessee requests the Port’s consent to a proposed assignment (including an assignment to a creditor for security purposes), sublease or February 3, 2026 J - 17 2026 City Parks Dept. Commercial Lease (Rev 0) 17 modification of this Lease. The Port reserves the right to increase the Transfer Fee Deposit up to Five Hundred Dollars ($500.00) if, in the Port’s sole judgment, the transaction will necessitate the expenditure of substantial time and expense on the part of the Port. Such Transfer Fee Deposit shall be submitted to the Port at the same time that Lessee requests the Port’s consent to the proposed sublease, assignment or modification. If the Port’s reasonable and customary attorneys’ fees exceed the Transfer Fee Deposit, then Lessee agrees to reimburse the Port for such additional reasonable and customary attorneys’ fees. Lessee’s failure to remit this additional amount within sixty (60) days of the mailing of the notice of such charges, shall constitute a default under this Lease. Notwithstanding anything to the contrary herein, Lessee shall not be obligated to reimburse the Port in any case where an assignment, sublease or modification is not accomplished due to total refusal on the part of the Port to grant its consent to the request. 7.9.4 If, pursuant to any assignment or sublease, Lessee receives rent, either initially or over the term of the assignment or sublease, in excess of the Rent called for hereunder, or in the case of a sublease, a portion of the Premises in excess of such Rent fairly allocable to such portion, after appropriate adjustments to assure that all other payments called for hereunder are appropriately taken into account, Lessee shall pay to the Port, as additional rent expenses hereunder, fifty percent (50%) of the excess of each such payment of Rent received by Lessee after its receipt. 7.9.5 If this Lease is assigned, or if the underlying beneficial interest of Lessee is transferred, or if the Premises or any part thereof is sublet to or occupied by anybody other than Lessee, the Port may collect Rent from the assignee, subtenant or occupant and apply the net amount collected to the Rent herein reserved, but no such assignment, subletting, occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of the assignee, subtenant or occupant as tenant, or a release of Lessee from the further performance by Lessee of covenants on the part of Lessee herein contained. No assignment or subletting shall affect the continuing primary liability of Lessee (which, following assignment, shall be joint and several with the assignee), and Lessee shall not be released from performing any of the terms, covenants and conditions of this Lease. 7.9.6 Notwithstanding any assignment or sublease, or any indulgences, waivers or extensions of time granted by the Port to any assignee or sublessee or failure of the Port to take action against any assignee or sublease, Lessee hereby agrees that the Port may, at its option, and upon not less than three (3) days’ notice to Lessee, proceed against Lessee without having taken action against or joined such assignee or sublessee, except that Lessee shall have the benefit of any indulgences, waivers and extensions of time granted to any such assignee or sublessee. 7.9.7 Any Lessee request to amend, sub-lease, or assign this Lease shall be conditioned by an amendment providing that the Base Rental Rate shall be adjusted to the prevailing Fair Market Rent. The Port may negotiate a reasonable schedule of periodic adjustments of the Fair Market Rent over a reasonable period of time, if the amount required to reach the Fair Market Rent in the sole discretion of the Port is substantial. 7.9.8 The Lessee must be in Good Standing as that term is defined herein below as a condition precedent to the Port’s agreement to amend, sub-lease, or assign the Lease. February 3, 2026 J - 18 2026 City Parks Dept. Commercial Lease (Rev 0) 18 7.9.9 “Good Standing” Defined- The Lessee is in "good standing" if it is in full compliance with all obligations in their current Lease or past lease agreements, which includes inter alia timely payment of rent, adherence to specific terms of the Lease (property usage, etc.), adherence to property boundaries, promotion of the Port, adherence to local/state/federal rules and regulations, adherence to Port regulations (notification of tenant improvements, permission, notice, etc.), and exercises good faith in its dealings with the Port. 7.10 REIMBURSEMENT FOR EXPENSES: Should Lessee seek to assign this Lease to any creditor as security for a loan or forbearance from such creditor, or attempt to otherwise assign, sublease, or modify this Lease between the Parties during the term of this Lease or any renewal thereof, then Lessee agrees to reimburse the Port for all customary and reasonable attorney fees paid by the Port for the review and opinion of such attorney acting on the request. A failure to reimburse the Port within sixty (60) days of the mailing of notice of such charges shall constitute a default under the terms of this Lease. Notwithstanding anything to the contrary herein, Lessee shall not be obligated to reimburse the Port in any case where an assignment, sublease, or modification is not accomplished due to total refusal on the part of the Port to grant its consent to the request. 7.11 TERMINATION: Upon expiration or sooner termination of this Lease or any extension thereof, whether by expiration of the stated term or sooner termination thereof, as herein provided, Lessee shall surrender to the Port the Premises peaceably and quietly. Lessee shall restore the Premises to the condition existing at the time of initiation of this Lease, except for: (i) normal wear and tear, and (ii) any improvements which the Port permits to remain on the Premises. 7.11.1 If the Port, at its sole discretion, shall require the use of the Premises for a public use in connection with the business of the Port not involving the lease thereof to another private lessee or in the event that the Port, at its sole discretion, shall require the use of the Premises for a major capital improvement for public or private use in connection with the operation of the business of the Port, then this Lease may be terminated by the Port by written notice delivered or mailed by the Port to Lessee not less than ninety (90) days before the termination date specified in the notice, unless the need for such use constitutes an emergency, in which case this Lease shall terminate as soon as is practicable. 7.11.2 If the United States Government, the State of Washington, or any agency or instrumentality of said government shall take title, possession, the rights of the Premises or any part thereof, the Port shall have the option to terminate this Lease, and if the taking has substantially impaired the utility of the Premises to Lessee, Lessee shall have the option to terminate this Lease. Both options shall be exercisable as of the date of said taking. If Lessee is not in default under any of the provisions of this Lease on the date of such taking, any rental prepaid by Lessee shall be promptly refunded to Lessee to the extent allocable to any period subsequent to said date, and all further obligations of the Parties shall terminate except liabilities, which shall be accrued prior to such date. To the extent Lessee owns certain improvements upon the Premises and is not otherwise directly compensated therefore by the taking entity, Lessee shall receive a fair allocation of any award received by the Port due to termination for government use. Nothing herein contained shall preclude Lessee from independently pursuing a direct claim for compensation from the taking entity for the value of its improvements to the Premises or its leasehold interest therein. February 3, 2026 J - 19 2026 City Parks Dept. Commercial Lease (Rev 0) 19 7.11.3 If any court having jurisdiction in the matter shall render a decision which has become final and which will prevent the performance by the Port of any of its obligations under this Lease, then either party hereto may terminate this Lease by written notice, and all rights and obligations hereunder (with the exception of any undischarged rights and obligations that occurred prior to the effective date of termination) shall thereupon terminate. If Lessee is not in default under any of the provisions of this Lease on the effective date of such termination, any rent prepaid by Lessee shall, to the extent allocable to any period subsequent to the effective date of the termination, be promptly refunded to Lessee. 7.12 DEFAULT, CROSS DEFAULT, AND REMEDIES: Failure to pay Rent or any other monetary obligations by the first day of each month shall constitute a default under the terms of this Lease. If Lessee is in default in the payment of Rent or other monetary obligations then, at the Port’s sole option, upon three (3) days’ written notice, this Lease may be terminated and the Port may enter upon and take possession of the Premises. Without limiting the generality of the foregoing, Lessee expressly authorizes the Port to obtain a prejudgment writ of restitution in the event of default by Lessee. This remedy is in addition to and is not exclusive of any other remedies provided either by this Lease or by law. 7.12.1 If Lessee shall fail to perform any term or condition of this Lease, other than the payment of Rent or other monetary obligations, then upon providing Lessee thirty (30) days’ written notice of such default, and if Lessee fails to cure such default within the thirty (30) day notice thereof, the Port may terminate this Lease and enter upon and take possession of the Premises. This remedy is in addition to and is not exclusive of any other remedies provided either by this Lease or by law. 7.12.2 If within any one (1) year period, the Port serves upon Lessee three notices requiring Lessee either to: (i) comply with the terms of this Lease or to vacate the Premises or (ii) pay Rent or vacate (collectively referred to herein as “Default Notices”), then Lessee shall, upon a subsequent violation of any term of this Lease by Lessee (including failure to pay Rent), be deemed to be in unlawful detainer, and the Port may, in addition to any other remedies it may have, immediately terminate the Lease and/or commence an unlawful detainer action without further notice to Lessee. 7.12.3 The following shall also constitute a default under the terms of this Lease: (i) A default by Lessee under any other agreement or lease with the Port; (ii) insolvency of Lessee; (iii) an assignment by Lessee for the benefit of creditors; (iv) the filing by Lessee of a voluntary petition in bankruptcy; (v) an adjudication that Lessee is bankrupt or the appointment of a receiver of the properties of Lessee; (vi) the filing of an involuntary petition of bankruptcy and failure of Lessee to secure a dismissal of the petition within thirty (30) days after filing; and (vii) attachment of or the levying of execution on the leasehold interest and failure of Lessee to secure a discharge of the attachment or release of the levy of execution within ten (10) days. 7.12.4 A default under this Lease shall constitute a default under any other lease or agreement which Lessee has with the Port (hereinafter such other agreements shall be referred to as “Collateral Agreements”). Likewise, any material breach or default under any Collateral Agreements shall be deemed a material breach or default under the terms of this Lease. If any February 3, 2026 J - 20 2026 City Parks Dept. Commercial Lease (Rev 0) 20 Collateral Agreements are terminated for a material breach or default of Lessee, then the Port shall, without limiting any other remedies it may have, be entitled to terminate this Lease upon five (5) days’ written notice to Lessee. 7.12.5 In addition to the foregoing remedies specified in this article, the Port may exercise any remedies or rights under the laws of the State of Washington. Under no circumstances shall the Port be held liable in damages or otherwise by reason of any lawful re-entry or eviction. The Port shall not, by any re-entry or other act, be deemed to have accepted any surrender by Lessee of the Premises or be deemed to have otherwise terminated this Lease or to have relieved Lessee of any obligation hereunder. 7.12.6 The Port shall be under no obligation to observe or perform any covenant of this Lease after the date of any material default by Lessee unless and until Lessee cures such default. 7.12.7 A fee of Five Hundred Dollars ($500.00) shall be assessed to Lessee for each Default Notice issued to Lessee to defray the costs associated with preparing, issuing, and serving such notice. This fee shall be payable on the first (1st) day of the month following the issuance of the notice. 7.13 NON-WAIVER: Neither the acceptance of Rent nor any other act or omission of the Port after a default by Lessee shall operate as a waiver of any past or future default by Lessee, or to deprive the Port of its right to terminate this Lease, or be construed to prevent the Port from promptly exercising any other right or remedy it has under this Lease. Any waiver by the Port shall be in writing and signed by the Port in order to be binding on the Port. 7.14 NOTICES: Any notice, demand, request, consent, approval or communication that either Party desires or is required to give to the other Party shall be in writing addressed to the other Party at the addresses as follows: TO THE PORT Port of Port Angeles P.O. Box 1350 Port Angeles, WA 98362 TO LESSEE: City of Port Angeles Attn: City Manager 321 E. 5th Street Port Angeles, WA 98362 or such address as may have been specified by notifying the other Party of the change of address. Notice shall be deemed served on the date of actual delivery or the first attempted delivery as shown on the return receipt if mailed with the United States Postal Service by certified mail, return receipt requested. 7.15 AGENT FOR SERVICE: Lessee agrees that if Lessee is in unlawful detainer, pursuant to Chapter 59.12 RCW, and the Port is unable to serve Lessee with the unlawful detainer pleadings after one service attempt, then the Port shall be deemed to have complied with the service February 3, 2026 J - 21 2026 City Parks Dept. Commercial Lease (Rev 0) 21 requirements of Chapter 59.12 RCW if it mails such pleadings via certified mail to the address set forth in the notice section of this Lease and posts such pleadings in a conspicuous location on the Premises. Service shall be deemed complete on the next third day following the day of mailing. 7.16 SECURITY: Lessee specifically acknowledges that the Port has no duty to provide security for any portion of the Premises or surrounding areas. Lessee assumes sole responsibility and liability for the security of itself, its employees, customers, and invitees, and their respective property in or about the Premises. Lessee agrees that to the extent the Port elects to provide any security, the Port is not warranting the effectiveness of any such security personnel, services, procedures or equipment and that Lessee is not relying and shall not hereafter rely on such security personnel, services, procedures or equipment. The Port shall not be responsible or liable in any manner for failure of any such security personnel, services, procedures or equipment to prevent or control, or apprehend anyone suspected of personal injury or property damage in, on or around the Premises. 7.17 QUIET ENJOYMENT: The Port acknowledges that it has ownership of the Premises and that it has the legal authority to lease the Premises to Lessee. The Port covenants that Lessee shall have quiet enjoyment of the Premises during the term of this Lease so long as the terms are complied with by Lessee and subject to the Port’s right of entry onto the Premises as set forth herein. 7.17.1 The Port reserves the right to grant easements and other land uses on the Premises to others when the easement or other land uses applied for will not unduly interfere with the use to which Lessee is putting the Premises or interfere unduly with the approved plan of development for the Premises. No easement or other land uses shall be granted to third parties, until damages to the Lessee have been dealt with appropriately, or waiver signed by Lessee. 7.17.2 Lessee understands that various federal agencies, including the Department of Homeland Security and U.S. Coast Guard, have the authority to restrict access to certain areas on property owned by the Port in order to counter a terrorist or other threat. Such restrictions could impact Lessee’s ability to access the Premises for an indefinite period of time. Since such restrictions on access are outside the control of the Port, Lessee agrees that such interruptions shall not be deemed a violation of this Lease or the Covenant of Quiet Enjoyment. 7.18 PORT MAY ENTER PREMISES; INSPECTION: The Port reserves the right to inspect the Premises after written notice (except where the Port reasonably believes there exists or is about to exist an emergency, in which case no notice is required) at any and all reasonable times throughout the term of this Lease, provided that it shall not unduly interfere with Lessee’s operations. The right of inspection reserved to the Port hereunder shall impose no obligation on the Port to make inspections to ascertain the condition of the Premises and shall impose no liability upon the Port for failure to make such inspections. The Port shall have the right to place and maintain “For Rent” signs in conspicuous places on the Premises for a reasonable period of time prior to the expiration or sooner termination of the Lease. 7.19 TIME: It is mutually agreed and understood that time is of the essence of this Lease and that a waiver of any default of Lessee shall not be construed as a waiver of any other default. February 3, 2026 J - 22 2026 City Parks Dept. Commercial Lease (Rev 0) 22 7.20 INTERPRETATION: This Lease has been submitted to the scrutiny of the Parties hereto and their counsel, if desired. In any dispute between the Parties, the language of this Lease shall, in all cases, be construed as a whole according to its fair meaning and not for or against either the Port or Lessee. If any provision is found to be ambiguous, the language shall not be construed against either the Port or Lessee solely on the basis of which Party drafted the provision. If any word, clause, sentence, or combination thereof for any reason is declared by a court of law or equity to be invalid or unenforceable against one Party or the other, then such finding shall in no way affect the remaining provisions of this Lease. 7.21 HOLDING OVER: If Lessee remains in possession of said Premises after the date of expiration of this Lease without the Port’s prior written consent, such holding over shall constitute and be construed as tenancy at sufferance only, at a monthly rent equal to one hundred fifty percent (150%) of the rent owed during the immediately preceding month under this Lease and otherwise upon the terms and conditions in this Lease and shall continue to be responsible for payment of applicable CAM Expenses and leasehold excise tax obligations. If Lessee holds over with the Port’s prior written consent, then until such time as a new written Lease is executed by the Parties hereto, Lessee shall continue to make payments to the Port on a month-to-month basis as provided for in this Lease. Such holdover tenancy may be terminated by either Party at the end of any such monthly period by sending written notice not less than five (5) days before the end of such period. Such holdover tenancy shall be subject to all terms and conditions contained herein. 7.22 PROMOTION OF PORT COMMERCE: Lessee agrees that throughout the term of this Lease it will, insofar as practicable, promote the activities of the Port. 7.23 SURVIVAL: All obligations of Lessee, as provided for in the Lease, shall not cease upon the termination of this Lease and shall continue as obligations until fully performed. All clauses of this Lease, which require performance beyond the termination date, shall survive the termination date of this Lease. 7.24 GOVERNING LAW: This Lease, and the right of the Parties hereto, shall be governed by and construed in accordance with the laws of the State of Washington, and the Parties agree that in any such action jurisdiction and venue shall lie exclusively in Clallam County, Washington. 7.25 ESTOPPEL CERTIFICATES: At Lessee’s request, the Port agrees to execute and deliver to Lessee or its lender(s), a customary estoppel certificate in a form acceptable to the Port which sets forth the following information: (i) the terms and conditions of this Lease, (ii) the status of the Rent payments under the Lease; and (iii) the Port’s knowledge of any breaches or anticipated breaches of the Lease. The Port shall have no obligation to execute an estoppel certificate which requests any information other than as set forth above. Lessee agrees to reimburse the Port for all attorneys’ fees paid by the Port for the review and opinion of such attorney acting on the request for such estoppel certificate and in negotiating acceptable language in the estoppel certificate. A failure to reimburse the Port within sixty (60) days of the mailing of notice of such charges shall constitute a default under the terms of this Lease. 7.26 ATTORNMENT: In the event the Premises are sold, Lessee shall attorn to the purchaser upon the sale provided that the purchaser expressly agrees in writing that, so long as Lessee is not February 3, 2026 J - 23 2026 City Parks Dept. Commercial Lease (Rev 0) 23 in default under the Lease, Lessee’s possession and occupancy of the Premises will not be disturbed and that such purchaser will perform all obligations of the Port under the Lease. 7.27 ENTIRE AGREEMENT: This Lease contains all of the understandings between the Parties. Each Party represents that no promises, representations or commitments have been made by the other as a basis for this Lease which have not been reduced to writing herein. No oral promises or representations shall be binding upon either Party, whether made in the past or to be made in the future, unless such promises or representations are reduced to writing in the form of a modification to this Lease executed with all necessary legal formalities by the Commission of the Port of Port Angeles, or its designee. 7.28 COMMISSIONS AND FEES: In the absence of any agreement between the Parties to the contrary, each Party represents and warrants to the other that it has not been represented by, or introduced to the other by, any broker or agent. In the absence of any agreement between the Parties to the contrary, each Party hereby agrees to indemnify and hold the other harmless from and against any and all fees, commissions, costs, expenses (including attorneys’ fees) obligations and causes of actions arising against or incurred by the other Party by reason of any claim for a real estate commission or a fee or finder’s fee by reason of any contract, agreement or arrangement with, or services rendered at the request of, the indemnifying Party. 7.29 VALIDATION: IN WITNESS WHEREOF, the Port has caused this instrument to be signed by its Executive Director, or other designee, by authority of the Commission of the Port of Port Angeles, and this instrument has been signed and executed by Lessee, on the day and written below. LESSOR: LESSEE: PORT OF PORT ANGELES CITY OF PORT ANGELES ________________________ __________________________ Paul S. Jarkiewicz Nathan West Its: Executive Director Its: City Manager Date: ____________________ Date: ____________________ February 3, 2026 J - 24 2026 City Parks Dept. Commercial Lease (Rev 0) 24 STATE OF WASHINGTON ) ) ss. County of Clallam County ) On this _____ day of _________________, 20___, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared NATHAN WEST, to me known to be the CITY MANAGER OF THE CITY OF PORT ANGELES, the entity that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said entity for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. _____________________________ NOTARY PUBLIC in and for the State of Washington, residing at __________________________ My Commission Expires: ________ STATE OF WASHINGTON ) ) ss. County of Clallam ) On this _____ day of _________________, 20___, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared PAUL JARKIEWICZ, to me known to be the EXECUTIVE DIRECTOR OF THE PORT OF PORT ANGELES, the entity that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said entity for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. _____________________________ NOTARY PUBLIC in and for the State of Washington, residing at __________________________ My Commission Expires: ________ February 3, 2026 J - 25 2026 City Parks Dept. Commercial Lease (Rev 0) 25 EXHIBIT A – Leased Premises Initials: _________ City __________ Port February 3, 2026 J - 26 2026 City Parks Dept. Commercial Lease (Rev 0) 26 EXHIBIT B -Repair and Maintenance Inclusion List Premises improvements to be repaired and maintained by the Port of Port Angeles as follows: ACCESS ROADS & PARKING CATCH BASINS, GRATES, FRAME DRINKING FOUNTAINS DOORS, EXTERIOR DOOR HARDWARE, EXTERIOR DRAINAGE PIPE ENTRANCES & STOREFRONTS ELECTRICAL SERVICE & DISTRIBUTION FIRE EXTINGUISHERS & CABINETS FOUNDATION DRAINAGE GLAZING GUTTERS & DOWNSPOUTS HYDRANTS HANDRAILS AND RAILINGS HVAC INSULATION MANHOLES & CLEANOUTS PAINTING, EXTERIOR PAVING & SURFACING PAVEMENT MARKING & PARKING LINES PLUMBING (OUTSIDE OF TENANT LEASED SPACE) RESTROOM CLEANING, COMMON AREAS ROOFING SYSTEMS (DECKING) SANITARY SEWAGE SYSTEMS (EXTERIOR MAINS) SEALANTS & CAULKING/EXTERIOR SIDING SIDEWALKS/CURBS SNOW REMOVAL STORM SYSTEMS SWEEPING AND LEAF BLOWING THERMAL & MOISTURE PROTECTION WATER DISTRIBUTION (EXTERIOR MAINS) WEATHERSTRIPPING & SEALS WINDOWS, EXTERIOR Lessee shall be responsible for repair and maintenance of all Premises improvements not identified on this Exhibit B. Initials: ____________ Initials: ____________ Port of Port Angeles Lessee February 3, 2026 J - 27 Date: February 3, 2026 To: City Council From: Nathan A. West, City Manager Kari Martinez-Bailey, City Clerk Subject: Association of Washington Cities Center for Quality Communities Scholarship Finalist 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, Increase community engagement outreach with the public and local businesses. Background / Analysis: The AWC Center for Quality Communities scholarship supports high school seniors who are active in leadership in their city government, community, or school, and plan to pursue post-secondary education. Each year, all of Washington’s 281 cities and towns can recruit scholarship applicants. Each jurisdiction can nominate one graduating high school senior. In 2025, CQC awarded three scholarships. In 2026, the CQC will award up to four $3,000 scholarships. The application period opened on October 22, 2025 and the deadline for cities to submit their nominations was January 26, 2026. On November 18, 2025, Council appointed Mayor Dexter and Council members Schwab and Hamilton to a subcommittee to review scholarship applications and nominate a student to be considered for a AWC Center for Quality Communities Scholarship, and authorize the City Clerk to submit this nomination to AWC prior to the January 26 deadline. The subcommittee nominated Ella Garcelon as their student to forward to the CQC Scholarship Selection Committee. Ms. Garcelon has been actively involved with the City of Port Angeles, specifically by serving as a student representative to the Port Angeles Parks, Recreation, and Beautification committee for the last two years. In addition to her time spent on the City’s Permanent Committee, she has been an active member of the local 4-H organization, Silver Spurs. Ella has been a member of Silver Spurs for twelve years, serving three years as vice president and two years as club president. Ms. Garcelon has also Summary: The Association of Washington Cities (AWC) Center for Quality Communities (CQC) scholarship supports high school seniors who are active in leadership in their city government, community, or school and plan to pursue post-secondary education. Strategic Plan: This proposal directly aligns with Strategic Focus Area #1, Increase community engagement outreach with the public and local businesses. Funding: N/A Recommendation: For information only. February 3, 2026 L - 1 been the president of Know Your Government for 2 years, where youth learn about the inner workings of city government and attend state-wide conventions. In January 2025, she worked at the Washington State Capitol for a week, helping Representative Tharinger as a student page. The City submitted Ms. Garcelon to the CQC Scholarship Selection Committee on January 26th 2026. During February and March, the Selection Committee will review the nominations and recipients well be announced in the Spring of 2026. Scholarship recipients will also receive a travel stipend to attend AWC's Annual Conference in Spokane in June 2026. Funding Overview: N/A Attachment: None February 3, 2026 L - 2 The “BIG IDEA” Interpretive Regional Map Site images Arts, Science and Culture Campus Coming Soon! Site Plan Project Design Schedule [July 2026 –August 2027] Building Massing Floor Plan –Level 1 The Lobby welcomes visitors, sets the tone, and offers a taste of the much appreciated stories. It orients tourists, connects locals, and invites everyone to learn why this coastline is protected with a National Marine Sanctuary. With exhibits, screens, and retail, it’s both a gathering place and a gateway to deeper discovery. Lobby Visitors meet people in the region, some of whom have lived here since time immemorial. Stories of traditional lifeways and treaty rights provide context to Indigenous relationships to the ocean, while the dramatic shipwreck history and traditions of commercial fishing and harvesting illustrate the needs and threats to the livelihood of all people of our region. People and the Ocean In the Biodiversity zone, visitors encounter a rich variety of habitats and species that represent the biodiversity of our region’s waters—and the connectedness of these waters to the waterways of the rest of the world.Visitors exit the zone with a sense of wonder at the remarkable biodiversity of our region—and how it connects, intimately and sometimes precariously, to a greater global environment. Biodiversity A living display of seabirds surrounds the visitor. As they watch birds dive, swim, and forage for food, visitors learn of some of the challenges facing these creatures at the top of the food chain.Visitors see the seabirds as ambassadors for some of the actions required to ensure the ocean’s health. Seabirds and the Ocean In this zone, visitors discover that there is still much we don’t know about the world’s ocean—and meet the people working to change that. They learn about individuals from many walks of life who are turning new knowledge into action: conserving the integrity of our local environment and addressing global challenges. Ocean Science in Action The learning center is a cornerstone of the Center’s program: students and community groups meet here for curriculum-based classes, activities, workshops, and more. Learning Center In a functioning aquarium, one of the most vital—and often most costly— components, both in terms of space and budget, is the network of support spaces and equipment required to sustain the animals. Support Spaces Adopting Updated Lodging Tax Advisory Committee Funding Work Plan and Procedures for 2026 PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 1 LTAC Background and Process PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 2 •Lodging Tax Advisory Committee meets to review applications. •The LTAC makes a recommendation to City Council. •City Council accepts/rejects the LTAC’s recommendation. •If rejected, LTAC meets again to review the Council’s request. •Bottom Line –LTAC is an Advisory Committee; final decisions lie with City Council. December 16, 2025 Council Action At the December 16, 2025 City Council meeting, Council voted unanimously to adopt the recommendations from the Lodging Tax Advisory Committee for 2026 funding and directed staff to bring to City Council prior to the next LTAC meeting a Resolution to set policy for the LTAC that includes fully funding the administrative costs of Lodging Tax administration. PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 3 Next Steps PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 4 Draft Resolution formalizing the direction provided by Council by updating the distribution of funds in the LTAC Work Plan and Procedures. Staff prepared and submitted a round two application consistent with the RCW and Council’s direction, to be discussed at the next LTAC meeting in March. The LTAC will then make a recommendation of round two funding requests, which will be brought back to Council for final approval/rejection in April. Public Funds Accountability PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 5 •Summer 2025 Council Workshop showed the City’s 2026 budget imbalance. •Departments were directed to eliminate general fund internal subsidies. •Prompted a change to the master fee schedule. •Led staff to perform a deep dive into the actual expenses associated with administering Lodging Tax funds. •We appreciate the community members who advocate for fiscal accountability and transparency. Administrative and Fiscal Oversight PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 6 •Past staff time requests underestimated LTAX administration costs under a business-as-usual model. •The 2026 application submitted by staff reflects a thorough analysis of true administrative costs. •Staff strive for exceptional customer by providing responsive, personalized vendor support. •Pending round two review, up to 50 contracts will be managed in 2026 by staff, a significant increase in the 31 from 2025. Expanded Workload PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 7 $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 2014 2016 2018 2020 2022 2024 2026 2028 Funds Managed 0 10 20 30 40 50 60 2014 2016 2018 2020 2022 2024 2026 2028 Number of Contracts Oversight Costs PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 8 If approved, 12% or approximately $134,000 in LTAX funds would be dedicated to City staff oversight and administrative costs within the Lodging Tax program in 2026. The LTAC will be reviewing the round two funding requests, where this adjustment will be considered, and the LTAC recommendation will be provided to City Council for final approval or rejection in April. Staff Recommendation 1.Pass the Resolution adopting the updated 2026 Lodging Tax Advisory Committee Funding Work Plan and Procedures, and 2.Authorize the City Manager or their designee to administer the work plan and procedures, and to make minor modifications. PORT ANGELES CITY COUNCIL MEETING –FEBRUARY 3, 2026 9