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08/08/2018 STUDY SESSION PACKET
CITY COUNCIL 345 6"' Street, Suite 100, Bremerton, WA 98337 ❑ Phone (360) 473-5280 ***AMENDED*** AUGUST 8, 2018 CITY COUNCIL STUDY SESSION 5:00 PM in COUNCIL CONFERENCE ROOM 603 The Study Session is open to the public, but there will be no opportunities for input or participation; no action is anticipated during the Study Session except when deemed appropriate; and the content of these items is subject to change. If approved by Council, the items will be placed on the August 15, 2018 Council Meeting Agenda: A. NO PRESENTATION PLANNED - The following items are budgeted items orsubjects that have been raised by the appropriate Council Committee Members: 1. Purchase of Nine (9) Ford Police Interceptors from Columbia Ford of Longview, WA; with associated Safety Equipment Installation; and related Budget Adjustment 2. Temporary Construction Easement with Austin Family Properties LLC for Bucky's Auto Repair Driveway Construction (Highway Safety Improvements Phase 2 Project) 3. Stormwater Financial Assistance Program Grant with the Washington State Department of Ecology for the E. 11th Street Stormwater Treatment Retrofit Design 4. Stormwater Financial Assistance Program Grant with the Washington Department of Ecology for the Marine Drive & Kitsap Way Stormwater Low Impact Development (LID) Treatment Retrofit Construction 5. Stormwater Financial Assistance Program Grant with the Washington State Department of Ecology for the High Efficiency Compact Vacuum Sweeper 6. Application for the Community Development Block (CDBG) Grant for Accessibility Improvements at Evergreen Rotary Park Information only 7. Telecommunication Tower Option and Lease Agreement with Vertical Bridge, LLC for Forest Ridge Park Item pulled; but update provided B. BRIEFINGS AND FULL PRESENTATIONS 1. Acceptance of the Lodging Tax Advisory Committee Recommendations for FY -2019 Funding Allocations C. EXECUTIVE SESSION D. GENERAL COUNCIL BUSINESS Dublin Safety S2 Darks (`A -M. . Qr Rg (199 4 9 4 9 449 g) Qhair I oclio rl. Hgs 1. ��et�r<��,�ftee�e#i„g-��-,-�,-o-,��et+� Cancelled... 2. Council Discussion on Affordable Housing — Council President Eric Younger 3. Other General Council Business E. ADJOURNMENT OF STUDY SESSION ® Americans with Disabilities Act accommodations provided upon request. Those requiring special accommodations should contact the City Clerk's Office at (360) 473-5323 at least 24 hours prior to the meeting. AGENDA BILL CITY OF BREMERTON Al CITY COUNCIL SUBJECT: Purchase of Nine (9) Ford Police Interceptors from Columbia Ford of Longview, WA; with Safety Equipment Installation; and related Budget Adjustment Study Session Date: August 8, 2018 COUNCIL MEETING Date: Auaust 15. 2018 Department: Presenter: Phone: PW&U / ERR Milenka Hawkins -Bates (360) 473-5333 SUMMARY: The City last week received the news that Ford is changing their police vehicle program platform and all police orders for 2019 cars must be in by Sept. 1, 2018. Staff has identified three cars that need to be replaced in 2019 and then an additional six cars need to be purchased for adequate coverage for the vehicle take home program. The total cost for the nine vehicles plus associated safety equipment per quotes is $546,344.19 including Washington State sales tax. We will be utilizing State Contract No. 05916. ATTACHMENTS: 1) Quote from Columbia Ford; 2) Parts Quote for Safety Equipment; 3) Justification Memo FISCAL IMPACTS (Include Budgeted Amount): The 2018 police personnel budget anticipates a minimum savings of $440,000 due to vacancies. Staff is requesting a budget adjustment to reallocate $440,000 from personnel to supplies and services as an equipment interfund charge; with an additional $106,344.19 coming from ending fund balance within the General Fund. The total ERR budget increase (Fund 510) is $546,344.19. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve purchase of nine Vehicles plus associated safety equipment per quotes in the amount of $546,344.19 including Washington State sales tax. And approve a budget adjustment of $546,344.19 as described above under Fiscal Impacts. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/02/2018 Charles Ernst From: NOREPLY@des.wa.gov Sent: Thursday, July 26, 2018 12:57 PM To: Charles Ernst Cc: Steve.Hatfield@des.wa.gov Subject: Vehicle Quote - 2018-7-303 - BREMERTON, CITY OF - 21801 Vehicle Quote Number: 2018-7-303 Create Purchase Request View_or0anl7ation purchase requests This is a quote only. You must create a purchase request to order this vehicle(s) Contract & Dealer Information Contract #: 05916 Dealer: Columbia Ford (W403) 700 7th Avenue Longview WA 98632 Dealer Contact: Marie Tellinghiusen Dealer Phone: (360) 423-4321 Ext: 187 Dealer Email: orders@colford.com Organization Information Organization: BREMERTON, CITY OF - 21801 Email: charles.ernst@ci.bremerton.wa.us Quote Notes: leave front and rear partition top portion loose. key number 1284x 1 service wiring diagram Vehicle Location: ORTING Color Options Agate Black (UM) - 9 Tax Exempt: N Vehicle Options OCode de Option Description 2019-0506-001 2019 Ford Police Interceptor AWD Pursuit -Rated Utility/SUV (K8A/500A) 2019-0506-016 Front Headlamp Housing Only (includes pre -drilled hole for side marker police use and pre -molded side warning LED holes with standard sealed capability)(does not include LED installed lights) (Headlamps will not wig -wag) (Not available with Ready for the Road Package #67H)(86P) Qty Unit Price Ext. Price 9 $29,394.00 $264,546.00 9 2019-0506-018 Tail Lamp/Housing Only (Includes pre-existing holes with standard twist lock sealed capability) (does 9 not include LED installed lights) (Not available with Tail Lamp Lighting Solution #66B or Ready for the Road Package #67H) (86T) 2019-0506-024 Side Marker LED, Sideview Mirrors (Driver side - Red / Passenger side - Blue) (Located on backside of exterior mirror housing) (LED lights only. Wiring and controller "not" included.) (Must also order Pre - wiring for grille lamp, siren and speaker #60A) (63B) $124.00 $1,116.00 $60.00 $540.00 9 $290.00 $2,610.00 2019-0506-025 Rear Quarter Glass Side Marker LED Lights (Driver side - Red / Passenger side - Blue) (63L) 9 $574.00 $5,166.00 2019-0506-030 Pre -Wiring for grille LED lights, siren and speaker (60A) 2019-0506-034 Dome Lamp - Red/White in Cargo Area(17T) 2019-0506-035 Daytime Running Lights (942) 1 9 $52.00 $468.00 9 $51.00 $459.00 9 $45.00 $405.00 2019-0506-037 Police Silent Mode (when activated, courtesy lamps and daytime running lights are disabled) (Must also 9 $20.00 $180.00 order Daytime Running Lights #942) (43L) 2019-0506-038 Police Engine Idle Feature (when activated, allows the key to be removed from ignition while vehicle 9 $260.00 $2,340.00 remains idling, which allows driver to leave the engine running and prevents vehicle from unauthorized use when driver is outside of the vehicle) (47A) 2019-0506-040 BLIS Blind Spot Monitoring with Cross -Traffic Alert (also includes Heated Sideview Mirrors 9 $543.00 $4,887.00 #549)(55B/54Z) 2019-0506-044 Doors/Locks: Rear Door Handles Inoperable / Locks Inoperable (68G) 9 $35.00 $315.00 2019-0506-048 SYNC Basic Voice -Activated Communications System (includes single USB port and single auxiliary audio 9 $294.00 $2,646.00 input jack) (53M) 2019-0506-049 Remappable (4) switches on steering wheel (if ordered with SYNC, includes Voice Button) (61R/61S) 2019-0506-051 Reverse Sensing System (76R) 2019-0506-055 Fleet Keyed Alike (Call dealer for available key codes) (NEW - allowed to also order Remote Keyless Entry #55F) (KEY) 2019-0506-056 Rear Console Plate (wiring conduit from front console plate to rear seat) (Included with Ready for the Road Package) (N/A with Interior Upgrade Package #65U or Front Console Plate Delete #85D) (85R) 2019-0506-059 Spot Lamp, LED Bulb, Driver Only (Unity) (51R) 2019-0506-070 Deflector Plate (std on EcoBoost engine) (76D) 2019-0506-084 Two -Tone Vinyl Wrap Package #1, White (Roof, RH/LH Front Doors, RH/LH Rear Doors) (91A) 2019-0506-205 Service Wiring Diagram, Paper (DLR) 2019-0506-206 Mud Flaps, HD Plastic (Set of 4) (DLR) 2019-0506-207 Undercoating (wheel wells) (DLR) 2019-0506-212 Push Bumper Upgrade, HD Fender Wraps (Pit Bars) (Setina PB5) (Must also order a Setina Push Bumper) (Not compatible with Ford's Front Warning Auxiliary Light #21L) (DLR) 2019-0506-214 Push Bumper, Lighted Pursuit, Front/Side Red/Blue LEDs (Setina PB450L4) (DLR) 2019-0506-218 Door Panels, Rear Doors (TPO, Setina) (Must also order Hidden Door Lock Plunger or Inoperable Rear Door Locks #67H, #68G, #52H or #52P) (DLR) 2019-0506-220 Window Barriers, Rear Doors, Polycarbonate Panels (Setina) (Must also order Hidden Plunger or Inoperable Rear Door Locks #67H, #68G, #52H or #52P) (DLR) 2019-0506-223 Partition, Front Horizontal with Sliding Polycarbonate Window, including Recess Panel (Setina 10VSRP) (DLR) 2019-0506-225 Partition, Front - Tallman Upgrade (allows additional seat recline for driver) (Must also order a front partition) (Setina T) (DLR) 2019-0506-227 Weapons Mounting System, DUAL [Standard Shotgun Lock and Adjustable Universal Lock with key override and timer] (Must also order Front Partition w/ Recess Panel #10VSRP) (DLR) 2 9 $155.00 $1,395.00 9 $274.00 $2,466.00 9 $51.00 $459.00 9 $35.00 $315.00 9 $394.00 $3,546.00 9 $334.00 $3,006.00 9 $837.00 $7,533.00 9 $87.00 $783.00 9 $90.00 $810.00 9 $125.00 $1,125.00 9 $384.00 $3,456.00 9 $974.00 $8,766.00 9 $213.00 $1,917.00 9 $210.00 $1,890.00 9 $742.00 $6,678.00 9 $20.00 $180.00 9 $349.00 $3,141.00 [2019-0506-232 Partition, Rear - Polycarbonate Panel (Setina 12VS/P) (DLR) 9 $441.00 $3,969.00 2019-0506-233 Seat, Setina HD TPO Full Replacement Rear Prisoner Transport Seat (includes Center -Originating Seat 9 $813.00 $7,317.00 Belts with Docking Buckles on front partition) (Factory seat shipped loose in cargo area) (Must also order Setina Rear Partition 12VS or 12VS/P) (DLR) Quote Totals N1,8aCI,II bo 3 Total Vehicles: 9 Sub Total: $344,430.00 8.4 % Sales Tax: $28,932.12 Quote Total: $373,362.12 "?,'qt(/ 4m),(Z q,39'a-Il 5a, o3l.9q 41 3-: to , H(v l • qI Vehicle Standard Specifications And Additional Information Vehicle: 2019 Ford Police Interceptor AWD Pursuit -Rated Utility SUV Contract #: 05916 - Motor Vehicles Dealer: Columbia Ford Vehicle Standard Specifications And Additional Information Page 1 of 3 Specification Description Specification Base vehicle description: 2019 Ford Police Interceptor K8A AWD Pursuit -Rated Utility/SUV Trim Level: Police Standard 500A Engine: 3.71, V6 Ti -VCT Police -Calibrated Engine 99R Horsepower/Torque: (304 HP)(279 Ft. Lbs. TQ @ STANDARD 4000rpm) GVWR: 1,630# Payload STANDARD Average MPG (US Dept of Energy): 15 city / 20 highway INFO (2018MY) Transmission: 6 -Speed Automatic Police -Calibrated 44C Transmission (Column Shifter) Front Door Lock Cylinders (Driver/Passenger) or Remote Keyless Entry (Qty 4): Exterior Key Locks: Driver, Front STANDARD Passenger and Liftgate (4 Keys) Spare tire (Full Size, Mini Size, No, Available as option): STANDARD Full -Size Spare Tire with TPMS Tires & Wheels: 245/55R 18 All -Season BSW Tires; HD Steel Wheels, 18in x 8.0, painted black, vented with STANDARD center cap Tire Chain/Traction Devise Compatible. Describe: For police utility, use only SAE Class S snow chains, snow INFO cables or equivalent on the front axle for 245/55 R18 equipped vehicles Seating configuration: Front Cloth Buckets (built-in steel intrusion plates in front seat backs), 6 -Way Power TT9W Adjustable Drivers Seat with Manual Lumbar, Rear Vinyl 60/40 Split Flooring material: HD Thermoplastic Elastomer STANDARD Battery/Charging system: HD 78 -Amp 750CCA Battery, STANDARD HD 220 Amp Alternator Fuel Tank Capacity Gallons: 18.6 Gallon Fuel Tank STANDARD Rear Axle Ratio: 3.65 Axle Ratio STANDARD Ground Clearance: Not available INFO Skid Plates: Optional OPTIONAL Air Bags: Airbags: Driver and Front Passenger, Side Seat, STANDARD Roll Curtain Airbags and Safety Canopy Fleet deviations from retail: None, Fleet -Only Vehicle INFO https://fortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=1184 7/26/2018 Vehicle Standard Specifications And Additional Information Page 2 of 3 75 -MPH Rear End Crash Tested (the full-size spare tire STANDARD secured in the factory location is necessary to achieve police -rated 75 -mph rear impact crash -test performance attributes) All -Wheel Drive (AWD) Drivetrain STANDARD 4 -Wheel HD Disc Brakes with HD Front and Rear Calipers, ABS Anti -Locking Braking System with STANDARD Traction Control HD Electric Power -Assist Steering (EPAS) STANDARD Cooling System: HD Large, High -Volume Radiator, STANDARD Engine Oil Cooler and Transmission Oil Cooler Engine Hour Meter STANDARD Two (2) 50 -amp battery ground circuits - power distribution junction block - repositioned behind 2nd row STANDARD passenger seat floorboard Rear bumper step pad STANDARD Sun Visors, non -illuminated STANDARD SOS Post Crash Alert System STANDARD Power Pigtail Harness STANDARD Two-way radio pre -wire STANDARD Power Adjustable Pedals STANDARD Cloth Headliner, Easy to Drop STANDARD Rearview Camera with Washer (video displays in rearview electrochromic mirror) (option available to view FCY/87R in center stack) AdvanceTrac w/ RSC (Roll Stability Control) with STANDARD hydraulic brake assist Power Windows with One -Touch Up/Down Front Driver STANDARD and Passenger Liftgate Release Switch - located in Overhead Console; Liftgate Membrane will remain unlocked for 45 seconds STANDARD before timing out Roof -Mounted Antenna STANDARD Privacy Glass: 2nd Row, Rear Quarter and Liftgate STANDARD Acoustic Laminated Windshield STANDARD Headlamps: LED Low Beam; Incandescent (Halogen) STANDARD High Beam Power Locks, Windows, Mirrors STANDARD Climate Control / Air -Conditioning: Manual, Single -Zone STANDARD Glovebox, Locking/non-illuminated STANDARD Interior Lighting: 1 st row task lights, 1 st row red/white STANDARD dome lamp, 2nd row map light Power points: (2) 12V in 1 st row STANDARD https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=1184 7/26/2018 Vehicle Standard Specifications And Additional Information Page 3 of 3 Cruise Control, Manual Tilt Steering Wheel STANDARD Seat Belts, Pretensioner/Energy-Management System w/ STANDARD Adjustable Height in 1 st Row Tire Pressure Monitoring System (TPMS)(Individual Tire STANDARD Message Alerts/Readings) AM/FM/CD/MP3 Capable/Clock/6 Speakers STANDARD Recovery Hook, Rear Only (Not included with 3.51, STANDARD EcoBoost Engine) Rear Window Defroster, Dual Speed Wiper STANDARD Front Speed -Sensitive Intermittent Windshield Wipers STANDARD 3 -Year / 36,000 Miles Bumper -to -Bumper STANDARD 5 -year / 100,000 Miles Powertrain CARE Extended STANDARD Service Plan (zero deductible) 90-120 Days to deliver after receipt of order STANDARD Exterior Paints (M=Metallic): Oxford White, Agate Black, Vermillion Red, Medium Titanium M, Ingot Silver M, Light Blue M, Sterling Gray M, Silver Grey M, STANDARD Arizona Beige M, Royal Blue, Blue M, Norsea Blue M, Dark Toreador Red M, Medium Brown M, Dark Blue, Kodiak Brown M, Smokestone M https:Hfortress.wa.gov/ga/apps/CARSNehicleSpecifications.aspx?id=1184 7/26/2018 2019 Police Vehicle Install Cost Estimate Description Cost Cost * 9 Opticom $1,303.64 $11,732.76 Electronic Equipment Mount $347.71 $3,129.39 Radio Speaker $47.74 $429.66 Arm Rest $103.52 $931.68 Cup Holder $38.46 $346.14 Center Console $379.83 $3,418.47 Siren Control Module $1,398.31 $12,584.79 Antenna $15.52 $139.68 Radio Remote Control Head Mount $236.32 $2,126.88 Radio Control Head $391.48 $3,523.32 Light Bar $2,566.88 $23,101.92 Motorola Radio Transciever $1,538.68 $13,848.12 Fuse/Relay/Timer panel $500.31 $4,502.79 Radio License $517.21 $4,654.89 Radar Unit $1,876.37 $16,887.33 Siren Speaker $184.21 $1,657.89 Siren Speaker Mount $26.16 $235.44 Traffic Advisor $877.50 $7,897.50 Flasher R/W $100.97 $908.73 Flasher B/W $100.97 $908.73 Flasher Blue x2 $152.02 $1,368.18 Flasher Red x2 $157.60 $1,418.40 MCT Mount Kit $540.75 $4,866.75 Fire Extinguisher $46.07 $414.63 Spike Strips $502.27 $4,520.43 Decals $525.30 $4,727.70 Total Parts $14,475.&) $130,28,2.'0 Labor= 55hr at 80.00 per hour $4,400.00 $39,600.00 Total Cost $18,875.80 $169,882.20 Vehicle Cost $41,829.-W i I 37t46t--39. 3 7(e,4 fol Act Total Vehicle Cost $60,704.84 $546,343,59 reO"'Oq. R 1 54(p/05'44-19 N N N E E E to N N N 3 O ca ca ca N N N 70 _0 _0 .L ca ca ca z .T) +�+ m 'L 0) 0) 0) O � C) aaa i o }' +, Q V i U 11- LL C'')�N N N 0 V rCO � N � (� a� a cCf O � N co co O r L Q V r 00 00 m� N N N �, a a titin CW G O N O cu cu cu O O O m C.1 U. '� iii o � W M N O O O co cm v m UUU 04 o -0-0-0 M e >N 'L LL LL U- 0 00 00 0_ O O O O M LL 2 N V N N N N v U L � W 73 It ° �i I- O m cn O o G — La Cl)H > 00 00 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Temporary Construction Easement with Austin Family Properties LLC for Bucky's Auto Repair Driveway Construction (Highway Safety Improvements Phase 2 Project) M 'i Study Session Date: August 8, 2018 COUNCIL MEETING Date: Auaust 15. 2018 Department: Presenter: Phone: PW&U Weber (360) 473-2354 SUMMARY: The City is constructing sidewalks and curb ramps adjacent to Bucky's Auto Repair on the northwest corner of 6t" Street and Callow Avenue as part of the federally funded Highway Safety Improvements Phase 2 Project. With the federal process, the City is required to follow strict procedures to acquire any interest in property, including easements. A Temporary Construction Easement (TCE) is required for construction of the driveway to Bucky's, and at this time the City's consultant has obtained approval from WSDOT to begin negotiations with the property owner, Austin Family Properties LLC. These negotiations are currently underway, and the easement value is not expected to exceed $2,000.00. ATTACHMENTS: 1) Real Property Voucher Agreement; 2) Temporary Construction Easement FISCAL IMPACTS (Include Budgeted Amount): The cost of the easement is within the budget of the Highway Safety Improvements Phase 2 project. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to approve the Temporary Construction Easement (TCE) with Austin Family Properties LLC for a not to exceed amount of $2,000.00 and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action REAL PROPERTY VOUCHER AGREEMENT GENCYNAME I hereby agree to the terms and conditions listed below and hereby certify under penalty of perjury that the items and CITY OF BREMERTON amounts listed herein are proper charges, that the same or PUBLIC WORKS DEPARTMENT any part thereof has not been paid, and that I am 345 6b Street, Suite 100 authorized to sign for the Claimant: Bremerton, WA 98337 (Sign in Ink) BY Owner/Authorized Representative GRANTOR or CLAIMAN Austin Family Properties LLC 6204 S. Tacoma Way Date: Tacoma, WA 984094125 Re: Highway Safety Improvement, Phase 2 TAX PARCEL NUMBER: 3734-011-016-0006 In Full, Complete and Final Payment and Settlement for the Title or Interest Conveyed or Released, as Fully Set Forth In Attached Documents: AMOUNT Temporary Construction Easement For All Lands Convey: + $ Temporary Construction Easement: 311 SF @ $ / SF @ 10% + $ For All Improvements: + $ For All Damages: +$+ Less Special Benefits: $ + $ Statutory Evaluation Allowance + $ JUST COMPENSATION $ Legal / Administrative: + $ Other Items: Deductions: FINAL SETTLEMENT $ SUBTOTAL $ TOTAL AMOUNT TO BE PAID: $ Right -of -Way Agent: Sonja Davis By: Date The City of Bremerton agrees to the terms and conditions listed above. By: Date After Recording, Return to: City of Bremerton Public Works Department 3456 th Street, Suite 100 Bremerton, WA 98337 TEMPORARY CONSTRUCTION EASEMENT Document Title: Temporary Construction Easement Grantor: Austin Family Properties, LLC Grantee: City of Bremerton, a Washington municipal corporation Property Legal Description (abbreviated): Lots 16-20, Block 11, 2"d Add. to Charleston, Plat Vol. 4, Page 62, except that portion of Lot 20 conveyed to the State of WA for road purposes by deed recorded under auditor's file NO: 143066 and 370753 Additional Legal(s) on Exhibit "A and A-1" Assessor's Tax Parcel Number: 3734-011-016-0006 City of Bremerton HSIP Phase 2 The Grantor, AUSTIN FAMILY PROPERTIES, a Washington limited liability company, for and in consideration of the public good and other valuable consideration, conveys and grants unto the CITY OF BREMERTON, a Washington municipal corporation, and its assigns, the right, privilege and easement over, upon, and across the hereinafter described lands for the purpose of reconstructing a portion of Grantor's existing driveway so as to conform to proposed improvements. The temporary rights herein granted shall terminate on October 15, 2018. Said lands being situated in Kitsap County, State of Washington, and described as follows: The Property subject to this Easement is legally described and shown in Exhibit "A" and Exhibit "A-1" attached hereto and incorporated by reference. Dated this day of , 2018. Page 1 of 2 GRANTOR(S): Austin Family Properties LLC By: Its: STATE OF WASHINGTON } } SS. COUNTY OF KITSAP } I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he is authorized to execute the instrument and acknowledged it as the of , to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. Dated: Signature: Notary Public in and for the State of Washington Notary (print name): My appointment Expires on: Page 2 of 2 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Stormwater Financial Assistance Program Grant with the Washington State Department of Ecology for the E. 11th Street Stormwater Treatment Retrofit Design A3 Study Session Date: August 8, 2018 COUNCIL MEETING Date: Auaust 15. 2018 Department: Presenter: Phone: Public Works & Utilities Chance W Berthiaume (360) 473-5929 SUMMARY: The City has received a $100,000 Ecology Stormwater Financial Assistance Program (SFAP) grant to design new sidewalks and stormwater treatment systems on E 11th Street between Perry Ave and Pitt Ave. The design will include stormwater treatment systems, new porous concrete sidewalks, ADA ramps, and new trees. Public outreach will be an integral part of the design process. ATTACHMENTS: 1) Project summary 2) Ecology contract WQC-2017-BremPW-00055: "E 11th Street Stormwater Treatment Design" FISCAL IMPACTS (Include Budgeted Amount): $100,000 total project cost is funded with $75,000 from the Ecology grant and $25,000 City match. The grant match has been identified in the 2019 Storm Water Utility Capital Fund. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to accept the Washington State Department of Ecology Stormwater Financial Assistance Grant and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action E 11TH STORMWATER TREATMENT RETROFIT DESIGN DEPARTMENT OF ECOLOGY STORMWATER FINANCIAL ASSISTANCE PROGRAM (SFAP) GRANT Project Scope: Agave grant contract The East 11th Street Stormwater LID and Treatment Retrofit design area encompasses approximately 23 acres of both com- mercial and residential development, with 8 acres of urban roadway that all contribute pollutants to stormwater runoff. This project will install approximately 850 feet of pervious sidewalk, and up to eight Modular Wetland Systems (MWS) (DOE TAPE -approved stormwater treatment facilities) to improve water quality from runoff in this area. The project will install a public education sign to inform citizens of storm - water management practices and purpose. Water Quality Total Maximum Daily Load (TMDL): Sinclair and Dyes Inlets are 303(d) Listed water bodies for elevated fecal coliform. A combination of FC and general pollution have closed shellfish beds since the 1960's. This pro- ject supports the water quality cleanup plan. Combined Project Cost Budget: $100,000 Funding: 75% Ecology SFAP Grant Designer: TBD Contractor: TBD Project Manager: Chance Berthiaume Chance. Berthiaume@ci.bremerton.wa.us MWS Treatment systems remove: 85% of total suspended solids (TSS) 66% dissolved copper, 50% total copper, 66% dissolved zinc, 69% total zinc, 95% motor oil / petroleum hydrocarbons, Total Phosphorus: 64% Ortho Phosphorus: 67% Nitrogen: 45% Phosphorus and nitrogen are nutrients that feed al- gae blooms, including cyanobacteria (blue-green toxic algae). The MWS will remove and retain debris, sediments, TSS, dissolved and particulate metals and nutrients including nitrogen and phosphorus, bacteria, BOD, oxygen demanding substances, organic compounds and hydrocarbons during frequent storm events and continuous dry weather flows. PROJECT SCHEDULE (tentative) 2019 Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sept Oct Key: Grant contract approval/acceptance Bid/Award Design development DEPARTMENT OF *a ECOLOGY "M State of Washington Agreement No. WQC-2017-BremPW-00055 WATER QUALITY COMBINED FINANCIAL ASSISTANCE AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF BREMERTON This is a binding Agreement entered into by and between the state of Washington, Department of Ecology, hereinafter referred to as "ECOLOGY," and City of Bremerton, hereinafter referred to as the "RECIPIENT," to carry out with the provided funds activities described herein. GENERAL INFORMATION Project Title: Total Cost: Total Eligible Cost: Ecology Share: Recipient Share: The Effective Date of this Agreement is: The Expiration Date of this Agreement is no later than: Project Type: Project Short Description: East 11th Street Stormwater Treatment Design $100,000.00 $100,000.00 $75,000.00 $25,000.00 07/01/2017 06/30/2020 Stormwater Facility This project will improve water quality in Sinclair and Dyes inlets through the installation of pervious pavement and TAPE -approved stormwater treatment facilities at East 11th Street in the city of Bremerton. This project will provide treatment for total suspended solids (TSS), dissolved copper, dissolved zinc, and total phosphorus and will infiltrate stormwater flows to Puget Sound. An additional benefit of this project includes local education and outreach of stormwater management. Project Long Description: The East 11th Street retrofit area is mixed residential and commercial with a contributing area of approximately 23 acres. Land cover within this sub -basin consists of residential and commercial roofs, paved roads, landscaped areas, lawns, and parking lots. Stormwater pollutants of concern come from roadways, roofs and landscapes that contain sediments, metals, fertilizers, pesticides, petroleum, polycyclic aromatic hydrocarbons (PAHs), and fecal coliform bacteria. State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton The project will treat stormwater runoff from approximately eight acres of urban roadway surface and approximately 15 acres of contributing pervious surface using ECOLOGY -approved stormwater treatment best management practices (BMPs). The design will include approximately 850 feet of pervious sidewalk and up to eight TAPE -approved stormwater treatment facilities. The RECIPIENT will also install a permanent public education sign in a high -pedestrian traffic area to inform citizens about stormwater management. The project will help improve the water quality in Sinclair and Dyes inlets, which have a fecal coliform Total Maximum Daily Load (TMDL) plan. This project is part of a suite of multiple, larger projects proposed by the City of Bremerton and supported by the Puget Sound Partnership and West Central Local Integrating Organization (WCLIO). Overall Goal: This project will help protect and restore water quality in Washington by reducing stormwater impacts from existing infrastructure and development. Version 10/30/2015 Page 2 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton RECIPIENT INFORMATION Organization Name: City of Bremerton Federal Tax ID: 91-6001231 DUNS Number: 556846970 Mailing Address: 100 Oyster Bay Ave N Bremerton, Washington 98312 Physical Address: 100 Oyster Bay Ave N Bremerton, Washington 98312 Bremerton, Washington 98312 Organization Email: chance.berthiaume@ci.bremerton.wa.us Contacts Page 3 of 37 Project Manager Chance Berthiaume NPDES Stormwater Permit Coordinator 100 Oyster Bay Ave N Bremerton, Washington 98312 Email: chance.berthiaume(4�ci.bremerton.wa.us Phone: (360) 473-5929 Billing Contact Anna Cruz Accountant / Financial Analyst 345 6th Street, Suite 100 Bremerton, Washington 98337 Email: anna.cruz@ci.bremerton.wa.us Phone: (360) 473-2327 Authorized Chal Martin Signatory Public Works Director 345 6the Street, Suite 600 Bremerton, Washington 98337 Email: chal.martin@ci.bremerton.wa.us Phone: (360) 473-5758 Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton ECOLOGY INFORMATION Mailing Address: Department of Ecology Water Quality PO BOX 47600 Olympia, WA 98504-7600 Physical Address: Water Quality 300 Desmond Drive SE Lacey, WA 98503 Contacts Page 4 of 37 Version 10/30/2015 Cleo Neculae Project Manager 3190 - 160th Ave SE Bellevue, Washington 98008-5452 Email: cnec461@ecy.wa.gov Phone: (425) 649-7216 Layne Slone Financial Financial Manager Manager PO Box 47600 Olympia, Washington 98504-7600 Email: Inak461@ecy.wa.gov Phone: (360) 407-6225 Amanda Heye Technical Advisor PO Box 47600 Olympia, Washington 98504-7600 Email: ahey461@ecy.wa.gov Phone: (360) 407-6457 Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stonnwater Treatment Design Recipient Name: City of Bremerton AUTHORIZING SIGNATURES RECIPIENT agrees to furnish the necessary personnel, equipment, materials, services, and otherwise do all things necessary for or incidental to the performance of work as set forth in this Agreement. RECIPIENT acknowledges that they had the opportunity to review the entire Agreement, including all the terms and conditions of this Agreement, Scope of Work, attachments, and incorporated or referenced documents, as well as all applicable laws, statutes, rules, regulations, and guidelines mentioned in this Agreement. Furthermore, the RECIPIENT has read, understood, and accepts all requirements contained within this Agreement. This Agreement contains the entire understanding between the parties, and there are no other understandings or representations other than as set forth, or incorporated by reference, herein. No subsequent modifications or amendments to this agreement will be of any force or effect unless in writing, signed- by ignedby authorized representatives of the RECIPIENT and ECOLOGY and made a part of this agreement. ECOLOGY and RECIPIENT may change their respective staff contacts without the concurrence of either party. This Agreement shall be subject to the written approval of Ecology's authorized representative and shall not be binding until so approved. The signatories to this Agreement represent that they have the authority to execute this Agreement and bind their respective organizations to this Agreement. IN WITNESS WHEREOF: the parties hereto, having read this Agreement in its entirety, including all attachments, do agree in each and every particular and have thus set their hands hereunto. Washington State Department of Ecology LIM Heather R. Bartlett Water Quality Program Manager Template Approved to Form by Attorney General's Office Version 10/30/2015 Date City of Bremerton LIM Chal Martin Public Works Director Page 5 of 37 Date State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Greg Wheeler Page 6 of 37 Mayor Date Chance Berthiaume NPDES Stormwater Permit Coordinator Date Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Project Administration/Management Task Cost: $2,500.00 Task Description: A. The RECIPIENT shall carry out all work necessary to meet ECOLOGY grant or loan administration requirements. Responsibilities include, but are not limited to: maintenance of project records; submittal of requests for reimbursement and corresponding backup documentation; progress reports; and a recipient closeout report (including photos). B. The RECIPIENT shall maintain documentation demonstrating compliance with applicable procurement, contracting, and interlocal agreement requirements; application for, receipt of, and compliance with all required permits, licenses, easements, or property rights necessary for the project; and submittal of required performance items. C. The RECIPIENT shall manage the project. Efforts include, but are not limited to: conducting, coordinating, and scheduling project activities and assuring quality control. Every effort will be made to maintain effective communication with the RECIPIENT's designees; ECOLOGY; all affected local, state, or federal jurisdictions; and any interested individuals or groups. The RECIPIENT shall carry out this project in accordance with any completion dates outlined in this agreement. Task Goal Statement: Properly managed and fully documented project that meets ECOLOGY's grant or loan administrative requirements. Task Expected Outcome: * Timely and complete submittal of requests for reimbursement, quarterly progress reports, and RECIPIENT closeout report. * Properly maintained project documentation Recipient Task Coordinator: Chance Berthiaume Project Administration/Management Deliverables Page 7 of 37 Number Description Due Date 1.1 Quarterly Progress Reports 12 Recipient Closeout Report 1.3 Project Outcome Summary Report Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title Task Cost: $97,500.00 Design Plans and Specs, Environmental Review Task Description: The RECIPIENT shall ensure the following items are completed and provide the associated deliverables to ECOLOGY. The RECIPIENT must approve all materials prior to submitting them to ECOLOGY for acceptance. A. The RECIPIENT will coordinate the preparation and submittal of State Environmental Policy Act (SEPA) documentation. B. The RECIPIENT is responsible for application of, receipt of, and compliance with all required local, state, tribal and federal permits, licenses, easements, or property rights necessary for the project. C. The RECIPIENT will comply with Executive Order (05-05) cultural resources review requirements. To initiate cultural resources review the RECIPIENT will: 1. Submit an ECOLOGY 05-05/106 Form, or a cultural resources survey or assessment completed by a licensed archaeologist to ECOLOGY. All submitted materials must conform to the Washington State Standards for Cultural Resource Reporting (DAHP February 2014). 2. Develop and submit an Inadvertent Discovery Plan (IDP) to ECOLOGY. The RECIPIENT will ensure that all contractors and subcontractors have a copy of the completed IDP prior to and while working on-site. An IDP template may be found on the ECOLOGY website. Ground disturbing work (including geotechnical investigations) completed prior to receiving written notice to proceed from ECOLOGY shall not be eligible for reimbursement. D. The RECIPIENT will develop a project Design Report. Projects must be designed in accordance with the Stormwater Management Manual for Eastern Washington, Stormwater Management Manual for Western Washington, or equivalent manual. Project must be reviewed and accepted in writing by ECOLOGY to be eligible for reimbursement. The RECIPIENT will submit one digital copy of the items listed below to ECOLOGY for review. Reduce design figures to 11x17 inches in size and ensure they are legible. 1. Design Report. For a complete list of required design report elements refer to the ECOLOGY website. The RECIPIENT agrees to respond to ECOLOGY comments. The RECIPIENT must receive an Ecology Design Report Acceptance Letter prior to proceeding to 90 Percent design. 2. 90 Percent Design Package. At a minimum, this package must include 90 percent plans, specifications, engineer's opinion of cost which includes a schedule of eligible costs, and project construction schedule. For current bid inserts and specifications refer to the ECOLOGY website. Version 10/30/2015 Page 8 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton The RECIPIENT agrees to respond to ECOLOGY comments. The RECIPIENT must receive an Ecology 90 Percent Design Acceptance Letter prior to proceeding with Final Design. Task Goal Statement: The RECIPIENT will complete all design, environmental review, and permitting tasks and respond to ECOLOGY comments in a timely manner. Task Expected Outcome: The project will meet the requirements set forth by the State Environmental Policy Act, cultural resource protection requirements, ECOLOGY water quality facility design standards, and all other applicable federal, state, and local laws and regulations. Recipient Task Coordinator: Chance Berthiaume Design Plans and Specs, Environmental Review Deliverables Page 9 of 37 Number Description Due Date 2.1 Copy of SEPA determination documentation. Upload to EAGL and notify ECOLOGY when upload is complete. 22 Submit ECOLOGY 05-05/106 Form and any supplemental cultural resources documentation including Cultural Resource surveys directly to the Ecology Project Manager. Upload the Final Determination Letter to EAGL. 2.3 Inadvertent Discovery Plan. Upload to EAGL and notify ECOLOGY when upload is complete. 2.4 Design Report. Upload to EAGL and notify ECOLOGY when upload is complete. 2.5 Responses to ECOLOGY Design Report comments. Upload to EAGL and notify ECOLOGY when upload is complete. 2.6 Ecology Design Report Acceptance Letter. Upload to EAGL and notify ECOLOGY when upload is complete. 2.7 90 Percent Design Package. Upload to EAGL and notify ECOLOGY when upload is complete. 2.8 Responses to ECOLOGY 90 Percent Design Plan comments. Upload to EAGL and notify ECOLOGY when upload is complete. 2.9 Ecology 90 Percent Design Acceptance Letter. Upload to EAGL and notify ECOLOGY when upload is complete. 2.10 List of permits acquired, and environmental review documents. Upload to EAGL and notify ECOLOGY when upload is complete. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton BUDGET Funding Distribution EG190003 NOTE: The above funding distribution number is used to idents this specific agreement and budget on payment remittances and may be referenced on other communications from ECOLOGY. Your agreement may have multiple funding distribution numbers to idents each budget. Funding Title: Funding Effective Date: Funding Source: Title: Type: Funding Source % Description: SFAP 07/01/2017 SFAP - SFY17 State 100% Funding Type: Grant Funding Expiration Date: 06/30/2020 Environmental Legacy Stewardship Account (ELSA) - State Approved Indirect Costs Rate: Approved State Indirect Rate: 0% Recipient Match %: 25% InKind Interlocal Allowed: No InKind Other Allowed: No Is this Funding Distribution used to match a federal grant? No SFAP Task Total Project Administration/Management $ 2,500.00 Design Plans and Specs, Environmental Review $ 97,500.00 Total: S 100,000.00 Version 10/30/2015 Page 10 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Funding Distribution Summary Recipient / Ecology Share Page 11 of 37 Funding Distribution Name Recipient Match % Recipient Share Ecology Share Total SFAP 25.00 % $ 25,000.00 $ 75,000.00 $ 100,000.00 Total $ 25,000.00 S 75,000.00 $ 100,000.00 AGREEMENT SPECIFIC TERMS AND CONDITIONS N/A SPECIAL TERMS AND CONDITIONS SECTION 1: DEFINITIONS Unless otherwise provided, the following terms will have the respective meanings for all purposes of this agreement: "Administration Charge" means a charge established in accordance with Chapter 90.50A RCW and Chapter 173-98 WAC, to be used to pay Ecology's cost to administer the State Revolving Fund by placing a percentage of the interest earned in an Administrative Charge Account. "Administrative Requirements" means the effective edition of ECOLOGY's Administrative Requirements for Recipients of Ecology Grants and Loans at the signing of this agreement. "Annual Debt Service" for any calendar year means for any applicable bonds or loans including the loan, all interest plus all principal due on such bonds or loans in such year. "Average Annual Debt Service" means, at the time of calculation, the sum of the Annual Debt Service for the remaining years of the loan to the last scheduled maturity of the loan divided by the number of those years. "Centennial Clean Water Program" means the state program funded from various state sources. "Contract Documents" means the contract between the RECIPIENT and the construction contractor for construction of the project. "Cost Effective Analysis" means a comparison of the relative cost -efficiencies of two or more potential ways of solving a water quality problem as described in Chapter 173-98-730 WAC. "Defease" or "Defeasance" means the setting aside in escrow or other special fund or account of sufficient investments and money dedicated to pay all principal of and interest on all or a portion of an obligation as it comes due. "Effective Date" means the earliest date on which eligible costs may be incurred. "Effective Interest Rate" means the total interest rate established by Ecology that includes the Administrative Charge. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton "Estimated Loan Amount" means the initial amount of funds loaned to the RECIPIENT. "Estimated Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Estimated Loan Amount. "Equivalency" means projects designated by ECOLOGY to meet additional federal requirements. "Final Accrued Interest" means the interest accrued beginning with the first disbursement of funds to the RECIPIENT through such time as the loan is officially closed out and a final loan repayment schedule is issued. "Final Loan Amount" means all principal of and interest on the loan from the Project Start Date through the Project Completion Date. "Final Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Final Loan Amount. "Forgivable Principal" means the portion of a loan that is not required to be paid back by the borrower. "General Obligation Debt" means an obligation of the RECIPIENT secured by annual ad valorem taxes levied by the RECIPIENT and by the full faith, credit, and resources of the RECIPIENT. "General Obligation Payable from Special Assessments Debt" means an obligation of the RECIPIENT secured by a valid general obligation of the Recipient payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. "Gross Revenue" means all of the earnings and revenues received by the RECIPIENT from the maintenance and operation of the Utility and all earnings from the investment of money on deposit in the Loan Fund, except (i) Utility Local Improvement Districts (ULID) Assessments, (ii) government grants, (iii) RECIPIENT taxes, (iv) principal proceeds of bonds and other obligations, or (v) earnings or proceeds (A) from any investments in a trust, Defeasance, or escrow fund created to Defease or refund Utility obligations or (B) in an obligation redemption fund or account other than the Loan Fund until commingled with other earnings and revenues of the Utility or (C) held in a special account for the purpose of paying a rebate to the United States Government under the Internal Revenue Code. "Guidelines" means the ECOLOGY's Funding Guidelines that that correlate to the State Fiscal Year in which the project is funded. "Initiation of Operation Date" means the actual date the Water Pollution Control Facility financed with proceeds of the loan begins to operate for its intended purpose. "Loan" means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund (Centennial) Loan made pursuant to this loan agreement. "Loan Amount" means either an Estimated Loan Amount or a Final Loan Amount, as applicable. Version 10/30/2015 Page 12 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton "Loan Fund" means the special fund of that name created by ordinance or resolution of the RECIPIENT for the repayment of the principal of and interest on the loan. "Loan Security" means the mechanism by which the RECIPIENT pledges to repay the loan. "Loan Term" means the repayment period of the loan. "Maintenance and Operation Expense" means all reasonable expenses incurred by the RECIPIENT in causing the Utility to be operated and maintained in good repair, working order, and condition including payments to other parties, but will not include any depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes. "Net Revenue" means the Gross Revenue less the Maintenance and Operation Expense. "Original Engineer's Estimate" means the engineer's estimate of construction costs included with bid documents. "Principal and Interest Account" means, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the loan fund to be first used to repay the principal of and interest on the loan. "Project" means the project described in this agreement. "Project Completion Date" means the date specified in the agreement on which the Scope of Work will be fully completed. "Project Schedule" means that schedule for the project specified in the agreement. "Reserve Account" means, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the loan fund to secure the payment of the principal of and interest on the loan. "Revenue -Secured Debt" means an obligation of the RECIPIENT secured by a pledge of the revenue of a utility and one not a general obligation of the RECIPIENT. "Risk -Based Determination" means an approach to sub -recipient monitoring and oversight based on risk factors associated to a RECIPIENT or project. "Scope of Work" means the tasks and activities constituting the project. "Section 319" means the section of the Clean Water Act that provides funding to address nonpoint sources of water pollution. "Senior Lien Obligations" means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of execution of this loan agreement (or subsequently issued on a parity therewith, including refunding obligations) or issued after the date of execution of this loan agreement having a claim or lien on the Gross Revenue of the Utility prior and superior to the claim or lien of the loan, subject only to Maintenance and Operation Expense. "State Water Pollution Control Revolving Fund (Revolving Fund)" means the water pollution control revolving fund established by Chapter 90.50A.020 RCW. Version 10/30/2015 Page 13 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton "Termination Date" means the effective date of ECOLOGY's termination of the agreement. "Termination Payment Date" means the date on which the RECIPIENT is required to repay to ECOLOGY any outstanding balance of the loan and all accrued interest. "Total Eligible Project Cost" means the sum of all costs associated with a water quality project that have been determined to be eligible for ECOLOGY grant or loan funding. "Total Project Cost" means the sum of all costs associated with a water quality project, including costs that are not eligible for ECOLOGY grant or loan funding. "ULID" means any utility local improvement district of the RECIPIENT created for the acquisition or construction of additions to and extensions and betterments of the Utility. "ULID Assessments" means all assessments levied and collected in any ULID. Such assessments are pledged to be paid into the Loan Fund (less any prepaid assessments permitted by law to be paid into a construction fund or account). ULID Assessments will include principal installments and any interest or penalties which may be due. "Utility" means the sewer system, stormwater system, or the combined water and sewer system of the RECIPIENT, the Net Revenue of which is pledged to pay and secure the loan. SECTION 2: THE FOLLOWING CONDITIONS APPLY TO ALL RECIPIENTS OF WATER QUALITY COMBINED FINANCIAL ASSISTANCE FUNDING. The Water Quality Financial Assistance Funding Guidelines are included in this agreement by reference and are available on ECOLOGY's Water Quality Program website. A. Architectural and Engineering Services: The RECIPIENT certifies by signing this agreement that the requirements of Chapter 39.80 RCW, "Contracts for Architectural and Engineering Services," have been, or shall be, met in procuring qualified architectural/engineenng services. The RECIPIENT shall identify and separate eligible and ineligible costs in the final architectural/engineering services contract and submit a copy of the contract to ECOLOGY. B. Best Management Practices (BMP) Implementation: If the RECIPIENT installs BMPs that are not approved by ECOLOGY prior to installation, the RECIPIENT assumes the risk that part or all of the reimbursement for that activity may be delayed or ineligible. For more details regarding BMP Implementation, please reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality Program funding website. C. Cultural Resources: The RECIPIENT shall: 1) The RECIPIENT shall comply with all applicable federal, state and local environmental laws, statutes, regulations, executive orders, and permits. 2) The RECIPIENT shall comply with Ecology's Archaeological Resource and Historic Property review process. The RECIPIENT agrees that in no case shall construction activities, ground disturbance, or excavation of any kind, begin until provisions of this process are complied with. The RECIPIENT is responsible for developing a complete Inadvertent Discovery Plan (IDP). The IDP must be immediately available upon request by any party. The IDP must be readily available and be implemented to address any discovery. The RECIPIENT shall implement the procedures in Version 10/30/2015 Page 14 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton the IDP, and immediately notify ECOLOGY, the Department of Archeology and Historic Preservation (DAHP), and tribal representatives, if human remains, cultural, or archeological resources are discovered in the course of ground disturbing activities. For more details regarding requirements under this provision, please reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality Program funding website. D. Electronic Fund Transfers: The RECIPIENT must register as a statewide vendor in order to receive payment reimbursement. Washington State's Department of Enterprise Services (DES) issues all payments. DES maintains a central vendor file for Washington State agency use to process vendor payments. The RECIPIENT can complete the registration process online at: http://des.wa.gov/services/ContractingPurchasing/Business/VendorPay/Pages/default.aspx. This registration process allows the RECIPIENT to sign up for direct deposit payments, also known as electronic fund transfers (EFT). If the RECIPIENT has questions about the vendor registration process or setting up direct deposit payments contact DES Payee Help Desk at (360) 664-7779 or payeehelpdesk(4�des.wa.gov. E. Equipment Purchase: Equipment not included in the scope of work or the Ecology approved construction plans and specifications, must be pre -approved by ECOLOGY's project manager before purchase. F. Funding Recognition: The RECIPIENT must inform the public about ECOLOGY or any EPA (see Section 3.13 for Section 319 funded or Section 5.E for SRF funded projects) funding participation in this project through the use of project signs, acknowledgement in published materials, reports, the news media, websites, or other public announcements. Projects addressing site-specific locations must utilize appropriately sized and weather -resistant signs. Sign logos are available from ECOLOGY's Financial Manager upon request. G. Growth Management Planning: The RECIPIENT certifies by signing this agreement that it is in compliance with the requirements of Chapter 36.70A RCW, "Growth Management Planning by Selected Counties and Cities." If the status of compliance changes, either through RECIPIENT or legislative action, the RECIPIENT shall notify ECOLOGY in writing of this change within 30 days. H. Interlocal: The RECIPIENT certifies by signing this agreement that all negotiated interlocal agreements necessary for the project are, or shall be, consistent with the terms of this agreement and Chapter 39.34 RCW, "Interlocal Cooperation Act." The RECIPIENT shall submit a copy of each interlocal agreement necessary for the project to ECOLOGY upon request. I. Lobbying and Litigation: Costs incurred for the purposes of lobbying or litigation are not eligible for funding under this agreement. J. Post Project Assessment Survey: The RECIPIENT agrees to participate in a brief survey regarding the key project results or water quality project outcomes and the status of long-term environmental results or goals from the project approximately three years after project completion. A representative from ECOLOGY's Water Quality Program may contact the RECIPIENT to request this data. ECOLOGY may also conduct site interviews and inspections, and may otherwise evaluate the project, as part of this assessment. K. Project Status Evaluation: ECOLOGY may evaluate the status of this project 18 months from the effective date of this agreement. ECOLOGY's Project Manager and Financial Manager will meet with the RECIPIENT to review spending trends, completion of outcome measures, and overall project administration and performance. If the RECIPIENT fails to make satisfactory progress toward achieving project outcomes, ECOLOGY may change the scope of work, reduce grant funds, or increase oversight measures. Version 10/30/2015 Page 15 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton L. Technical Assistance: Technical assistance for agriculture activities provided under the terms of this agreement shall be consistent with the current U.S. Natural Resource Conservation Service ("NRCS") Field Office Technical Guide for Washington State. However, ECOLOGY may accept as eligible technical assistance, proposed practices, or project designs that do not meet these standards if approved in writing by the NRCS and ECOLOGY. SECTION 3: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 AND ONLY CENTENNIAL CLEAN WATER FUNDED PROJECTS BEING USED TO MATCH SECTION 319 FUNDS. The RECIPIENT must submit the following documents to ECOLOGY before this agreement is signed by ECOLOGY: 1. Federal Funding Accountability and Transparency Act (FFATA) Form, available on the Water Quality Program website. 2. Clean Water Act Section 319 Initial Data Reporting Sheet or the "Section 319 Initial Data Reporting" form in EAGL. A. Data Reporting: The RECIPIENT must complete the "Section 319 Initial Data Reporting" form in EAGL before this agreement can be signed by Ecology. This form is used to gather general information about the project. B. Funding Recognition and Outreach: In addition to Section 2.F of these Terms and Conditions, the RECIPIENT shall provide signage that informs the public that the project is funded by EPA. The signage shall contain the EPA logo and follow usage requirements available at http://www2.epa.gov/stylebook/using-epa-seal-and-logo. To obtain the appropriate EPA logo or seal graphic file, the RECIPIENT may sent a request to their Ecology's Financial Manager. To increase public awareness of projects serving communities where English is not the predominant language, RECIPIENTS are encouraged to provide their outreach strategies communication in non-English languages. Translation costs for this purpose are allowable, provided the costs are reasonable. The RECIPIENT shall use the following paragraph in all reports, documents, and signage developed under this agreement: "This project has been funded wholly or in part by the United States Environmental Protection Agency under an assistance agreement to the Washington State Department of Ecology. The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the mention of trade names or commercial products constitute endorsement or recommendation for use." C. Load Reduction Reporting: The RECIPIENT shall complete the "Section 319 Annual Load Reduction Reporting" form in EAGL by January 15 of each year and at project close-out. ECOLOGY may hold reimbursements until the RECIPIENT has completed the form. This form is used to gather information on pollutant load reductions for each best management practice (BMP) installed as a part of this project. D. Time Extension: The RECIPIENT may request a one-time extension for up to 12 months. However, the time extension cannot exceed the time limitation established in EPA's assistance agreement. In the event a time extension is requested and approved by ECOLOGY, the RECIPIENT must complete all eligible work performed under this agreement by the expiration date. Version 10/30/2015 Page 16 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton SECTION 4: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 AND STATE REVOLVING FUND (SRF) LOAN FUNDED PROJECTS ONLY. A. Accounting Standards: The RECIPIENT shall maintain accurate records and accounts for the project (PROJECT Records) in accordance with Generally Accepted Accounting Principles (GAAP) as issued by the Governmental Accounting Standards Board (GASB), including standards related to the reporting of infrastructure assets or in accordance with the standards in Chapter 43.09.200 RCW "Local Government Accounting — Uniform System of Accounting". B. Audit Requirements: In accordance with 2 CFR 200.501(a), the RECIPIENT agrees to obtain a single audit from an independent auditor, if their organization expends $750,000 or more in total Federal funds in their fiscal year. The RECIPIENT must submit the form SF -SAC and a Single Audit Report Package within 9 months of the end of the fiscal year or 30 days after receiving the report from an independent auditor. The SF -SAC and a Single Audit Report Package MUST be submitted using the Federal Audit Clearinghouse's Internet Data Entry System available at: https://harvester.census.gov/fac/collect/ddeindex.html. For complete information on how to accomplish the single audit submissions, go to the Federal Audit Clearinghouse Web site: http://harvester.census.gov/fac/. C. Archaeological Resources and Historic Properties (Section 106): See Section 2.0 of the terms and conditions of this agreement, the RECIPIENT shall comply with the additional requirements under section 106 of the National Historic Preservation Act (NHPA, 36 CFR 800). D. Consultant Cap: The RECIPIENT shall ensure that loan or grant funds provided under this agreement to reimburse for costs incurred by individual consultants (excluding overhead) is limited to the maximum daily rate for Level IV of the Executive Schedule (formerly GS -18), to be adjusted annually. The Executive Schedule can be found at: https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate. This rate does not include transportation and subsistence costs for travel performed. Contracts for services awarded using the procurement requirements in Subpart D of 2 CFR 200 are not affected by this limitation unless the terms of the contract provide the RECIPIENT with responsibility for the selection, direction, and control of the individuals who shall be providing services under the contract at an hourly or daily rate of compensation. See 2 CFR 1500.9 for additional information. E. Data Universal Numbering System (DUNS) and Central Contractor Registration (CCR) Requirements: RECIPIENTS shall have a DUNS number. Unless exempted from this requirement under 2 CFR 25.110, the RECIPIENT must ensure that the organization's information in the System for Award Management (SAM), https://www.sam.gov, is kept current through project closeout. This requires that the RECIPIENT reviews and updates the information at least annually after the initial registration, and more frequently if information changes. F. Disadvantaged Business Enterprise (DBE): General Compliance, 40 CFR, Part 33. The RECIPIENT agrees to comply with the requirements of the Environmental Protection Agency's Program for Utilization of Small, Minority, and Women's Business Enterprises (MBE/WBE) 40CFR, Part 33 in procurement under this agreement. Six Good Faith Efforts, 40 CFR, Part 33, Subpart C. The RECIPIENT agrees to make the following good faith efforts whenever procuring construction, equipment, services and supplies under this agreement. Records documenting compliance with the following six good faith efforts shall be retained: 1) Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government Version 10/30/2015 Page 17 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton RECIPIENTS, this shall include placing Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. 2) Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date. 3) Consider in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, and State and Local Government RECIPIENTS, this shall include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process. 4) Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract is too large for one of these firms to handle individually. 5) Use services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce. 6) If the prime contractor awards subcontracts, require the prime contractor to take the five good faith efforts steps in paragraphs 1 through 5 above. The RECIPIENT agrees to submit ECOLOGY's Contractor Participation Report Form D with each payment request. Contract Administration Provisions, 40 CFR, Section 33.302. The RECIPIENT agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. Non-discrimination Provision. The RECIPIENT shall not discriminate on the basis of race, color, national origin or sex in the performance of this agreement. The RECIPIENT shall carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the RECIPIENT to carry out these requirements is a material breach of this agreement which may result in the termination of this contract or other legally available remedies. This does not preclude the RECIPIENT from enacting broader nondiscrimination protections. The RECIPIENT shall comply with all federal and state nondiscrimination laws, including, but not limited to Title VI and VII of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and Chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA). In the event of the RECIPIENT's noncompliance or refusal to comply with any applicable nondiscrimination law, regulation, or policy, this agreement may be rescinded, canceled, or terminated in whole or in part, and the RECIPIENT may be declared ineligible for further funding from ECOLOGY. The RECIPIENT shall, however, be given a reasonable time in which to cure this noncompliance. The RECIPIENT shall include the following terms and conditions in contracts with all contractors, subcontractors, Version 10/30/2015 Page 18 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton engineers, vendors, and any other entity for work or services pertaining to this agreement. "The Contractor will not discriminate on the basis of race, color, national origin or sex in the performance of this Contract. The Contractor will carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under Environmental Protection Agency financial agreements. Failure by the Contractor to carry out these requirements is a material breach of this Contract which may result in termination of this Contract or other legally available remedies." Bidder List, 40 CFR, Section 33.501(b) and (c). The RECIPIENT agrees to create and maintain a bidders list. The bidders list shall include the following information for all firms that bid or quote on prime contracts, or bid or quote subcontracts, including both MBE/WBEs and non-MBE/WBEs. 1. Entity's name with point of contact 2. Entity's mailing address, telephone number, and e-mail address 3. The procurement on which the entity bid or quoted, and when 4. Entity's status as an MBE/WBE or non-MBE/WBE G. Electronic and information Technology (EIT) Accessibility: RECIPIENTS shall ensure that loan funds provided under this agreement for costs in the development or purchase of EIT systems or products provide individuals with disabilities reasonable accommodations and an equal and effective opportunity to benefit from or participate in a program, including those offered through electronic and information technology as per Section 504 of the Rehabilitation Act, codified in 40 CFR Part 7. Systems or products funded under this agreement must be designed to meet the diverse needs of users without barriers or diminished function or quality. Systems shall include usability features or functions that accommodate the needs of persons with disabilities, including those who use assistive technology. H. Hotel -Motel Fire Safety Act: The RECIPIENT shall ensure that all space for conferences, meetings, conventions or training seminars funded in whole or in part with federal funds complies with the protection and control guidelines of the Hotel and Motel Fire Safety Act (15 USC 2225a, PL 101-391, as amended). Recipients may search the Hotel -Motel National Master List at http://www.usfa.dhs.gov/applications/hoteU to see if a property is in compliance, or to find other information about the Act. Pursuant to 15 USC 2225a. I. Trafficking In Persons: The RECIPIENT and RECIPIENT employees that are private entities shall not engage in forms of trafficking in persons during the period of time this agreement is effective. This includes, but is not limited to the procurement of a commercial sex act or forced labor. The RECIPIENT shall notify ECOLOGY immediately of any information received from any source alleging a violation under this provision. SECTION 5: THE FOLLOWING CONDITIONS APPLY TO STATE REVOLVING FUND (SRF) LOAN FUNDED PROJECTS ONLY. The RECIPIENT must submit the following documents/forms to ECOLOGY before this agreement is signed by ECOLOGY: 1. Opinion of RECIPIENT's Legal Council 2. Authorizing Ordinance or Resolution 3. Federal Funding Accountability and Transparency Act (FFATA) Form 4. CWSRF Federal Reporting Information form available in EAGL Version 10/30/2015 Page 19 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton 5. Fiscal Sustainability Plan Certification (only required if the project includes construction of a wastewater or stormwater facility construction) A. Alteration and Eligibility of Project: During the term of this agreement, the RECIPIENT (1) shall not materially alter the design or structural character of the project without the prior written approval of ECOLOGY and (2) shall take no action which would adversely affect the eligibility of the project as defined by applicable funding program rules and state statutes, or which would cause a violation of any covenant, condition, or provision herein. B. American Iron and Steel (Buy American): This loan provision applies to projects for the construction, alteration, maintenance, or repair of a "treatment works" as defined in the Federal Water Pollution Control Act (33 USC 1381 et seq.) The RECIPIENT shall ensure that all iron and steel products used in the project are produced in the United States. Iron and Steel products means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. The RECIPIENT may request waiver from this requirement from the Administrator of the Environmental Protection Agency. The RECIPIENT must coordinate all waiver requests through ECOLOGY. This provision does not apply if the engineering plans and specifications for the project were approved by ECOLOGY prior to January 17, 2014. ECOLOGY reserves the right to request documentation of RECIPIENT'S compliance with this provision. C. Authority of RECIPIENT: This agreement is authorized by the Constitution and laws of the state of Washington, including the RECIPIENT's authority, and by the RECIPIENT pursuant to the authorizing ordinance or resolution. The RECIPIENT shall submit a copy of the authorizing ordinance or resolution to the ECOLOGY Financial Manager before this agreement shall be signed by ECOLOGY. D. Fiscal Sustainability Plan Certification: The RECIPIENT shall submit a completed Fiscal Sustainability Plan Certification before this agreement is signed by ECOLOGY. The Fiscal Sustainability Plan Certification is available from the ECOLOGY Financial Manager or on the Water Quality Program website. E. Funding Recognition and Outreach: In addition to Section 2.F of these Terms and Conditions, the RECIPIENT agrees to comply with the EPA SRF Signage Guidance in order to enhance public awareness of EPA assistance agreements nationwide. The signage guidance can be found at: http://www. ecy.wa.gov/programs/wq/funding/FundPrgms/CW SRF/SignageGuidanceJune2015.pdf. F. Free Service: The RECIPIENT shall not furnish utility service to any customer free of charge if providing that free service affects the RECIPIENT's ability to meet the obligations of this agreement. G. Insurance: The RECIPIENT shall at all times carry fire and extended coverage, public liability, and property damage, and such other forms of insurance with responsible insurers and with policies payable to the RECIPIENT on such of the buildings, equipment, works, plants, facilities, and properties of the Utility as are ordinarily carried by municipal or privately -owned utilities engaged in the operation of like systems, and against such claims for damages as are ordinarily carried by municipal or privately -owned utilities engaged in the operation of like systems, or it shall self -insure or participate in an insurance pool or pools with reserves adequate, in the reasonable judgment of the RECIPIENT, to protect it against loss. H. Loan Interest Rate and Terms: This loan agreement shall remain in effect until the date of final repayment of the loan, unless terminated earlier according to the provisions herein. Version 10/30/2015 Page 20 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton When the Project Completion Date has occurred, ECOLOGY and the RECIPIENT shall execute an amendment to this loan agreement which details the final loan amount (Final Loan Amount), and ECOLOGY shall prepare a final loan repayment schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and all accrued interest to the computation date. The Estimated Loan Amount and the Final Loan Amount (in either case, as applicable, a "Loan Amount") shall bear interest based on the interest rate identified in this agreement as the "Effective Interest Rate," per annum, calculated on the basis of a 365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly based on the date that each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal installments semiannually over the term of this loan "Loan Term" as outlined in this agreement. I. Loan Repayment: Sources of Loan Repayment 1. Nature of RECIPIENT's Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified below and to perform and observe all of the other agreements and obligations on its part contained herein shall be absolute and unconditional, and shall not be subject to diminution by setoff, counterclaim, or abatement of any kind. To secure the repayment of the loan from ECOLOGY, the RECIPIENT agrees to comply with all of the covenants, agreements, and attachments contained herein. 2. For General Obligation. This loan is a General Obligation Debt of the RECIPIENT. 3. For General Obligation Payable from Special Assessments. This loan is a General Obligation Debt of the RECIPIENT payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. 4. For Revenue -Secured: Lien Position. This loan is a Revenue -Secured Debt of the RECIPIENT's Utility. This loan shall constitute a lien and charge upon the Net Revenue junior and subordinate to the lien and charge upon such Net Revenue of any Senior Lien Obligations. In addition, if this loan is also secured by Utility Local Improvement Districts (ULID) Assessments, this loan shall constitute a lien upon ULID Assessments in the ULID prior and superior to any other charges whatsoever. 5. Other Sources of Repayment. The RECIPIENT may repay any portion of the loan from any funds legally available to it. 6. Defeasance of the Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT shall not be entitled to, and shall not affect, an economic Defeasance of the loan. The RECIPIENT shall not advance refund the loan. If the RECIPIENT defeases or advance refunds the loan, it shall be required to use the proceeds thereof immediately upon their receipt, together with other available RECIPIENT funds, to repay both of the following: (i) The Loan Amount with interest (ii) Any other obligations of the RECIPIENT to ECOLOGY under this agreement, unless in its sole discretion ECOLOGY finds that repayment from those additional sources would not be in the public interest. Version 10/30/2015 Page 21 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Failure to repay the Loan Amount plus interest within the time specified in ECOLOGY's notice to make such repayment shall incur Late Charges and shall be treated as a Loan Default. 7. Refinancing or Early Repayment of the Project. So long as ECOLOGY shall hold this loan, the RECIPIENT shall give ECOLOGY thirty days written notice if the RECIPIENT intends to refinance or make early repayment of the loan. Method and Conditions on Repayments 1. Semiannual Payments. Notwithstanding any other provision of this agreement, the first semiannual payment of principal and interest on this loan shall be due and payable no later than one year after the project completion date or initiation of operation date, whichever comes first. Thereafter, equal payments shall be due every six months. If the due date for any semiannual payment falls on a Saturday, Sunday, or designated holiday for Washington State agencies, the payment shall be due on the next business day for Washington State agencies. Payments shall be mailed to: Department of Ecology Cashiering Unit P.O. Box 47611 Olympia WA 98504-7611 In lieu of mailing payments, electronic fund transfers can be arranged by working with ECOLOGY's Financial Manager. No change to the amount of the semiannual principal and interest payments shall be made without a formal amendment to this agreement. The RECIPIENT shall continue to make semiannual payments based on this agreement until the amendment is effective, at which time the RECIPIENT's payments shall be made pursuant to the amended agreement. 2. Late Charges. If any amount of the Final Loan Amount or any other amount owed to ECOLOGY pursuant to this agreement remains unpaid after it becomes due and payable, ECOLOGY may assess a late charge. The late charge shall be one percent per month on the past due amount starting on the date the debt becomes past due and until it is paid in full. 3. Repayment Limitations. Repayment of the loan is subject to the following additional limitations, among others: those on defeasance, refinancing and advance refunding, termination, and default and recovery of payments. 4. Prepayment of Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT may prepay the entire unpaid principal balance of and accrued interest on the loan or any portion of the remaining unpaid principal balance of the Loan Amount. Any prepayments on the loan shall be applied first to any accrued interest due and then to the outstanding principal balance of the Loan Amount. If the RECIPIENT elects to prepay the entire remaining unpaid balance and accrued interest, the RECIPIENT shall first contact ECOLOGY's Revenue/Receivable Manager of the Fiscal Office. Version 10/30/2015 Page 22 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton J. Loan Security Due Regard: For loans secured with a Revenue Obligation: The RECIPIENT shall exercise due regard for Maintenance and Operation Expense and the debt service requirements of the Senior Lien Obligations and any other outstanding obligations pledging the Gross Revenue of the Utility, and it has not obligated itself to set aside and pay into the loan Fund a greater amount of the Gross Revenue of the Utility than, in its judgment, shall be available over and above such Maintenance and Operation Expense and those debt service requirements. Where collecting adequate gross utility revenue requires connecting additional users, the RECIPIENT shall require the sewer system connections necessary to meet debt obligations and expected operation and maintenance expenses. Levy and Collection of Taxes (if used to secure the repayment of the loan): For so long as the loan is outstanding, the RECIPIENT irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of its electors on all of the taxable property within the boundaries of the RECIPIENT in an amount sufficient, together with other money legally available and to be used therefore, to pay when due the principal of and interest on the loan, and the full faith, credit and resources of the RECIPIENT are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. Not an Excess Indebtedness: For loans secured with a general obligation pledge or a general obligation pledge on special assessments: The RECIPIENT agrees that this agreement and the loan to be made do not create an indebtedness of the RECIPIENT in excess of any constitutional or statutory limitations. Pledge of Net Revenue and ULID Assessments in the ULID (if used to secure the repayment of this loan): For so long as the loan is outstanding, the RECIPIENT irrevocably pledges the Net Revenue of the Utility, including applicable ULID Assessments in the ULID, to pay when due the principal of and interest on the loan. Reserve Requirement: For loans that are Revenue -Secured Debt with terms greater than five years, the RECIPIENT must accumulate a reserve for the loan equivalent to at least the Average Annual Debt Service on the loan during the first five years of the repayment period of the loan. This amount shall be deposited in a Reserve Account in the Loan Fund in approximately equal annual payments commencing within one year after the initiation of operation or the project completion date, whichever comes first. "Reserve Account" means, for a loan that constitutes Revenue -Secured Debt, an account of that name created in the Loan Fund to secure the payment of the principal and interest on the loan. The amount on deposit in the Reserve Account may be applied by the RECIPIENT (1) to make, in part or in full, the final repayment to ECOLOGY of the loan amount or, (2) if not so applied, for any other lawful purpose of the RECIPIENT once the Loan Amount, plus interest and any other amounts owing to ECOLOGY, have been paid in full. Utility Local Improvement District (ULID) Assessment Collection (if used to secure the repayment of the loan): All ULID Assessments in the ULID shall be paid into the loan Fund and used to pay the principal of and interest on the loan. The ULID Assessments in the ULID may be deposited into the Reserve Account to satisfy a Reserve Requirement if a Reserve Requirement is applicable. K. Maintenance and Operation of a Funded Utility: The RECIPIENT shall at all times maintain and keep a funded Utility in good repair, working order and condition and also shall at all times operate the Utility and the business in an efficient manner and at a reasonable cost. L. Opinion of RECIPIENT's Legal Counsel: The RECIPIENT must submit an "Opinion of Legal Counsel to the Version 10/30/2015 Page 23 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton RECIPIENT" to ECOLOGY before this agreement shall be signed. ECOLOGY will provide the form. M. Prevailing Wage (Davis -Bacon Act): The RECIPIENT agrees, by signing this agreement, to comply with the Davis -Bacon Act prevailing wage requirements. This applies to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by the State Revolving Fund as authorized by Section 513, title VI of the Federal Water Pollution Control Act (33 U.S.C. 1372). Laborers and mechanics employed by contractors and subcontractors shall be paid wages not less often than once a week and at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor. The RECIPIENT shall obtain the wage determination for the area in which the project is located prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation). These wage determinations shall be incorporated into solicitations and any subsequent contracts. The RECIPIENT shall ensure that the required EPA contract language regarding Davis -Bacon Wages is in all contracts and sub contracts in excess of $2,000. The RECIPIENT shall maintain records sufficient to document compliance with the Davis -Bacon Act, and make such records available for review upon request. The RECIPIENT also agrees, by signing this agreement, to comply with State Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable. Compliance may include the determination whether the project involves "public work" and inclusion of the applicable prevailing wage rates in the bid specifications and contracts. The RECIPIENT agrees to maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and make such records available for review upon request. N. Litigation; Authority: No litigation is now pending, or to the RECIPIENT's knowledge, threatened, seeking to restrain, or enjoin: (i) the execution of this agreement; or (ii) the fixing or collection of the revenues, rates, and charges or the formation of the ULID and the levy and collection of ULID Assessments therein pledged to pay the principal of and interest on the loan (for revenue secured lien obligations); or (iii) the levy and collection of the taxes pledged to pay the principal of and interest on the loan (for general obligation -secured loans and general obligation payable from special -assessment -secured loans); or (iv) in any manner questioning the proceedings and authority under which the agreement, the loan, or the project are authorized. Neither the corporate existence or boundaries of the RECIPIENT nor the title of its present officers to their respective offices is being contested. No authority or proceeding for the execution of this agreement has been repealed, revoked, or rescinded. O. Representations and Warranties: The RECIPIENT represents and warrants to ECOLOGY as follows: Application: Material Information. All information and materials submitted by the RECIPIENT to ECOLOGY in connection with its loan application were, when made, and are, as of the date the RECIPIENT signs this agreement, true and correct. There is no material adverse information relating to the RECIPIENT, the project, the loan, or this agreement known to the RECIPIENT which has not been disclosed in writing to ECOLOGY. Existence; Authority. It is a duly formed and legally existing municipal corporation or political subdivision of the Version 10/30/2015 Page 24 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton state of Washington or a federally recognized Indian Tribe. It has full corporate power and authority to execute, deliver, and perform all of its obligations under this agreement and to undertake the project identified herein. Certification. Each payment request shall constitute a certification by the RECIPIENT to the effect that all representations and warranties made in this loan agreement remain true as of the date of the request and that no adverse developments, affecting the financial condition of the RECIPIENT or its ability to complete the project or to repay the principal of or interest on the loan, have occurred since the date of this loan agreement. Any changes in the RECIPIENT's financial condition shall be disclosed in writing to ECOLOGY by the RECIPIENT in its request for payment. P. Sale or Disposition of Utility: The RECIPIENT shall not sell, transfer, or otherwise dispose of any of the works, plant, properties, facilities, or other part of the Utility or any real or personal property comprising a part of the Utility unless: 1. The facilities or property transferred are not material to the operation of the Utility, or have become unserviceable, inadequate, obsolete, or unfit to be used in the operation of the Utility or are no longer necessary, material, or useful to the operation of the Utility; or 2. The aggregate depreciated cost value of the facilities or property being transferred in any fiscal year comprises no more than three percent of the total assets of the Utility; or 3. The RECIPIENT receives from the transferee an amount equal to an amount which will be in the same proportion to the net amount of Senior Lien Obligations and this LOAN then outstanding (defined as the total amount outstanding less the amount of cash and investments in the bond and loan funds securing such debt) as the Gross Revenue of the Utility from the portion of the Utility sold or disposed of for the preceding year bears to the total Gross Revenue for that period. 4. Expressed written agreement by the DEPARTMENT. The proceeds of any transfer under this paragraph must be used (1) to redeem promptly, or irrevocably set aside for the redemption of, Senior Lien Obligations and to redeem promptly the loan, and (2) to provide for part of the cost of additions to and betterments and extensions of the Utility. Q. Sewer -Use Ordinance or Resolution: If not already in existence, the RECIPIENT shall adopt and shall enforce a sewer -use ordinance or resolution. Such ordinance or resolution shall be submitted to ECOLOGY upon request. The sewer use ordinance must include provisions to: 1) Prohibit the introduction of toxic or hazardous wastes into the RECIPIENT's sewer system. 2) Prohibit inflow of stormwater. 3) Require that new sewers and connections be properly designed and constructed. R. Termination and Default: Termination and Default Events For Insufficient ECOLOGY or RECIPIENT Funds. ECOLOGY may terminate this loan agreement for insufficient ECOLOGY or RECIPIENT funds. Version 10/30/2015 Page 25 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton 2. For Failure to Commence Work. ECOLOGY may terminate this loan agreement for failure of the RECIPIENT to commence project work. 3. Past Due Payments. The RECIPIENT shall be in default of its obligations under this loan agreement when any loan repayment becomes 60 days past due. 4. Other Cause. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance in full by the RECIPIENT of all of its obligations under this loan agreement. The RECIPIENT shall be in default of its obligations under this loan agreement if, in the opinion of ECOLOGY, the RECIPIENT has unjustifiably failed to perform any obligation required of it by this loan agreement. Procedures for Termination. If this loan agreement is terminated prior to project completion, ECOLOGY shall provide to the RECIPIENT a written notice of termination at least five working days prior to the effective date of termination (the "Termination Date"). The written notice of termination by the ECOLOGY shall specify the Termination Date and, when applicable, the date by which the RECIPIENT must repay any outstanding balance of the loan and all accrued interest (the "Termination Payment Date"). Termination and Default Remedies No Further Payments. On and after the Termination Date, or in the event of a default event, ECOLOGY may, at its sole discretion, withdraw the loan and make no further payments under this agreement. Repayment Demand. In response to an ECOLOGY initiated termination event, or in response to a loan default event, ECOLOGY may at its sole discretion demand that the RECIPIENT repay the outstanding balance of the Loan Amount and all accrued interest. Interest after Repayment Demand. From the time that ECOLOGY demands repayment of funds, amounts owed by the RECIPIENT to ECOLOGY shall accrue additional interest at the rate of one percent per month, or fraction thereof. Accelerate Repayments. In the event of a default, ECOLOGY may, in its sole discretion, declare the principal of and interest on the loan immediately due and payable, subject to the prior lien and charge of any outstanding Senior Lien Obligation upon the Net Revenue. That is, the loan is not subject to acceleration so long as any Senior Lien Obligations are outstanding. Repayments not made immediately upon such acceleration will incur Late Charges. Late Charges. All amounts due to ECOLOGY and not paid by the RECIPIENT by the Termination Payment Date or after acceleration following a default event, as applicable, shall incur late charges. Intercept State Funds. In the event of a default event and in accordance with Chapter 90.50A.060 RCW, "Defaults," any state funds otherwise due to the RECIPIENT may, at ECOLOGY's sole discretion, be withheld and applied to the repayment of the loan. Property to ECOLOGY. In the event of a default event and at the option of ECOLOGY, any personal property (equipment) acquired under this agreement may, in ECOLOGY's sole discretion, become ECOLOGY's property. In that circumstance, ECOLOGY shall reduce the RECIPIENT's liability to repay money by an amount reflecting the fair value of such property. Version 10/30/2015 Page 26 of 37 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Documents and Materials. If this agreement is terminated, all finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT shall, at the option of ECOLOGY, become ECOLOGY property. The RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Collection and Enforcement Actions. In the event of a default event, the state of Washington reserves the right to take any actions it deems necessary to collect the amounts due, or to become due, or to enforce the performance and observance of any obligation by the RECIPIENT, under this agreement. Fees and Expenses. In any action to enforce the provisions of this agreement, reasonable fees and expenses of attorneys and other reasonable expenses (including, without limitation, the reasonably allocated costs of legal staff) shall be awarded to the prevailing party as that term is defined in Chapter 4.84.330 RCW. Damages. Notwithstanding ECOLOGY's exercise of any or all of the termination or default remedies provided in this agreement, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and/or the state of Washington because of any breach of this agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. S. User -Charge System: The RECIPIENT certifies that it has the legal authority to establish and implement a user -charge system and shall adopt a system of user -charges to assure that each user of the utility shall pay its proportionate share of the cost of operation and maintenance, including replacement during the design life of the project. In addition, the RECIPIENT shall regularly evaluate the user -charge system, at least annually, to ensure the system provides adequate revenues necessary to operate and maintain the utility, to establish a reserve to pay for replacement, to establish the required Loan Reserve Account, and to repay the loan. WATER QUALITY COMBINED FINANCIAL ASSISTANCE TERMS AND CONDITIONS LAST UPDATED ON 10/04/2016 GENERAL FEDERAL CONDITIONS If a portion or all of the funds for this agreement are provided through federal funding sources or this agreement is used to match a federal grant award, the following terms and conditions apply to you. A. CERTIFICATION REGARDING SUSPENSION. DEBARMENT. INELIGIBILITY OR VOLUNTARY Page 27 of 37 EXCLUSION: 1. The RECIPIENT/CONTRACTOR, by signing this agreement, certifies that it is not suspended, debarred, proposed for debarment, declared ineligible or otherwise excluded from contracting with the federal government, or from receiving contracts paid for with federal funds. If the RECIPIENT/CONTRACTOR is unable to certify to the statements contained in the certification, they must provide an explanation as to why they cannot. 2. The RECIPIENT/CONTRACTOR shall provide immediate written notice to ECOLOGY if at any time the RECIPIENT/CONTRACTOR learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 3. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Page 28 of 37 person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact ECOLOGY for assistance in obtaining a copy of those regulations. 4. The RECIPIENT/CONTRACTOR agrees it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under the applicable Code of Federal Regulations, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. 5. The RECIPIENT/CONTRACTOR further agrees by signing this agreement, that it will include this clause titled "CERTIFICATION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY EXCLUSION" without modification in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 6. Pursuant to 2CFR180.330, the RECIPIENT/CONTRACTOR is responsible for ensuring that any lower tier covered transaction complies with certification of suspension and debarment requirements. 7. RECIPIENT/CONTRACTOR acknowledges that failing to disclose the information required in the Code of Federal Regulations may result in the delay or negation of this funding agreement, or pursuance of legal remedies, including suspension and debarment. 8. RECIPIENT/CONTRACTOR agrees to keep proof in its agreement file, that it, and all lower tier recipients or contractors, are not suspended or debarred, and will make this proof available to ECOLOGY before requests for reimbursements will be approved for payment. RECIPIENT/CONTRACTOR must run a search in <http://www.sam.gov> and print a copy of completed searches to document proof of compliance. B. FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) REPORTING REQUIREMENTS: CONTRACTOR/RECIPIENT must complete the FFATA Data Collection Form (ECY 070-395) and return it with the signed agreement to ECOLOGY. Any CONTRACTOR/RECIPIENT that meets each of the criteria below must report compensation for its five top executives using the FFATA Data Collection Form. • Receives more than $25,000 in federal funds under this award. • Receives more than 80 percent of its annual gross revenues from federal funds. • Receives more than $25,000,000 in annual federal funds. Ecology will not pay any invoices until it has received a completed and signed FFATA Data Collection Form. Ecology is required to report the FFATA information for federally funded agreements, including the required DUNS number, at www.fsrs.gov <http://www.fsrs.gov/> within 30 days of agreement signature. The FFATA information will be available to the public at www.usaspending. o�ttp://www.usaspending.gov/>. For more details on FFATA requirements, see www.fsrs.gov <httn://www.fsrs.gov/>. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton GENERAL TERMS AND CONDITIONS Pertaining to Grant and Loan Agreements With the state of Washington, Department of Ecology GENERAL TERMS AND CONDITIONS AS OF LAST UPDATED 1/22/2018 VERSION 1. ADMINISTRATIVE REQUIREMENTS a) RECIPIENT shall follow the "Administrative Requirements for Recipients of Ecology Grants and Loans — EAGL Edition." (https://fortress.wa.gov/ecy/publications/SummaryPages/1701004.html) b) RECIPIENT shall complete all activities funded by this Agreement and be fully responsible for the proper management of all funds and resources made available under this Agreement. c) RECIPIENT agrees to take complete responsibility for all actions taken under this Agreement, including ensuring all subgrantees and contractors comply with the terms and conditions of this Agreement. ECOLOGY reserves the right to request proof of compliance by subgrantees and contractors. d) RECIPIENT's activities under this Agreement shall be subject to the review and approval by ECOLOGY for the extent and character of all work and services. Page 29 of 37 2. AMENDMENTS AND MODIFICATIONS This Agreement may be altered, amended, or waived only by a written amendment executed by both parties. No subsequent modification(s) or amendment(s) of this Agreement will be of any force or effect unless in writing and signed by authorized representatives of both parties. ECOLOGY and the RECIPIENT may change their respective staff contacts and administrative information without the concurrence of either party. 3. ARCHAEOLOGICAL AND CULTURAL RESOURCES RECIPIENT shall take reasonable action to avoid, minimize, or mitigate adverse effects to archeological and historic resources. The RECIPIENT must agree to hold harmless the State of Washington in relation to any claim related to historical or cultural artifacts discovered, disturbed, or damaged due to the RECIPIENT's project funded under this Agreement. RECIPIENT shall: a) Contact the ECOLOGY Program issuing the grant or loan to discuss any Cultural Resources requirements for their project: • For capital construction projects or land acquisitions for capital construction projects, if required, comply with Governor Executive Order 05-05, Archaeology and Cultural Resources. • For projects with any federal involvement, if required, comply with the National Historic Preservation Act. • Any cultural resources federal or state requirements must be completed prior to the start of any work on the project site. b) If required by the ECOLOGY Program, submit an Inadvertent Discovery Plan (IDP) to ECOLOGY prior to implementing any project that involves ground disturbing activities. ECOLOGY will provide the IDP form. RECIPIENT shall: • Keep the IDP at the project site. • Make the IDP readily available to anyone working at the project site. • Discuss the IDP with staff and contractors working at the project site. • Implement the IDP when cultural resources or human remains are found at the project site. c) If any archeological or historic resources are found while conducting work under this Agreement: • Immediately stop work and notify the ECOLOGY Program, the Department of Archaeology and Historic Preservation at (360) 586-3064, any affected Tribe, and the local government. d) If any human remains are found while conducting work under this Agreement: Version 10/30/2015 State of Washington Department of Ecology Page 30 of 37 Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton • Immediately stop work and notify the local Law Enforcement Agency or Medical Examiner/Coroner's Office, and then the ECOLOGY Program. e) Comply with RCW 27.53, RCW 27.44.055, and RCW 68.50.645, and all other applicable local, state, and federal laws protecting cultural resources and human remains. 4. ASSIGNMENT No right or claim of the RECIPIENT arising under this Agreement shall be transferred or assigned by the RECIPIENT. 5. COMMUNICATION RECIPIENT shall make every effort to maintain effective communications with the RECIPIENT's designees, ECOLOGY, all affected local, state, or federal jurisdictions, and any interested individuals or groups. 6. COMPENSATION a) Any work performed prior to effective date of this Agreement will be at the sole expense and risk of the RECIPIENT. ECOLOGY must sign the Agreement before any payment requests can be submitted. b) Payments will be made on a reimbursable basis for approved and completed work as specified in this Agreement. c) RECIPIENT is responsible to determine if costs are eligible. Any questions regarding eligibility should be clarified with ECOLOGY prior to incurring costs. Costs that are conditionally eligible require approval by ECOLOGY prior to expenditure. d) RECIPIENT shall not invoice more than once per month unless agreed on by ECOLOGY. e) ECOLOGY will not process payment requests without the proper reimbursement forms, Progress Report and supporting documentation. ECOLOGY will provide instructions for submitting payment requests. I) ECOLOGY will pay the RECIPIENT thirty (30) days after receipt of a properly completed request for payment. g) RECIPIENT will receive payment through Washington State Department of Enterprise Services' Statewide Payee Desk. RECIPIENT must register as a payee by submitting a Statewide Payee Registration form and an IRS W-9 form at the website, http://www.des.wa.gov/services/ContractingPurchasing/BusinessNendorPay/Pages/default.aspx. For any questions about the vendor registration process contact the Statewide Payee Help Desk at (360) 407-8180 or email payeehelpdesk@watech.wa.gov. h) ECOLOGY may, at its sole discretion, withhold payments claimed by the RECIPIENT if the RECIPIENT fails to satisfactorily comply with any term or condition of this Agreement. i) Monies withheld by ECOLOGY may be paid to the RECIPIENT when the work described herein, or a portion thereof, has been completed if, at ECOLOGY's sole discretion, such payment is reasonable and approved according to this Agreement, as appropriate, or upon completion of an audit as specified herein. j) RECIPIENT must submit within thirty (30) days after the expiration date of this Agreement, all financial, performance, and other reports required by this agreement. Failure to comply may result in delayed reimbursement. 7. COMPLIANCE WITH ALL LAWS RECIPIENT agrees to comply fully with all applicable federal, state and local laws, orders, regulations, and permits related to this Agreement, including but not limited to: a) RECIPIENT agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington which affect wages and job safety. b) RECIPIENT agrees to be bound by all applicable federal and state laws, regulations, and policies against discrimination. c) RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. d) RECIPIENT agrees to secure and provide assurance to ECOLOGY that all the necessary approvals and permits required by authorities having jurisdiction over the project are obtained. RECIPIENT must include time in their project timeline for the permit and approval processes. Version 10/30/2015 State of Washington Department of Ecology Page 31 of 37 Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton ECOLOGY shall have the right to immediately terminate for cause this Agreement as provided herein if the RECIPIENT fails to comply with above requirements. If any provision of this Agreement violates any statute or rule of law of the state of Washington, it is considered modified to conform to that statute or rule of law. 8. CONFLICT OF INTEREST RECIPIENT and ECOLOGY agree that any officer, member, agent, or employee, who exercises any function or responsibility in the review, approval, or carrying out of this Agreement, shall not have any personal or financial interest, direct or indirect, nor affect the interest of any corporation, partnership, or association in which he/she is a part, in this Agreement or the proceeds thereof. 9. CONTRACTING FOR GOODS AND SERVICES RECIPIENT may contract to buy goods or services related to its performance under this Agreement. RECIPIENT shall award all contracts for construction, purchase of goods, equipment, services, and professional architectural and engineering services through a competitive process, if required by State law. RECIPIENT is required to follow procurement procedures that ensure legal, fair, and open competition. RECIPIENT must have a standard procurement process or follow current state procurement procedures. RECIPIENT may be required to provide written certification that they have followed their standard procurement procedures and applicable state law in awarding contracts under this Agreement. ECOLOGY reserves the right to inspect and request copies of all procurement documentation, and review procurement practices related to this Agreement. Any costs incurred as a result of procurement practices not in compliance with state procurement law or the RECIPIENT's normal procedures may be disallowed at ECOLOGY's sole discretion. 10. DISPUTES When there is a dispute with regard to the extent and character of the work, or any other matter related to this Agreement the determination of ECOLOGY will govern, although the RECIPIENT shall have the right to appeal decisions as provided for below: a) RECIPIENT notifies the funding program of an appeal request. b) Appeal request must be in writing and state the disputed issue(s). c) RECIPIENT has the opportunity to be heard and offer evidence in support of its appeal. d) ECOLOGY reviews the RECIPIENT's appeal. e) ECOLOGY sends a written answer within ten (10) business days, unless more time is needed, after concluding the review. The decision of ECOLOGY from an appeal will be final and conclusive, unless within thirty (30) days from the date of such decision, the RECIPIENT furnishes to the Director of ECOLOGY a written appeal. The decision of the Director or duly authorized representative will be final and conclusive. The parties agree that this dispute process will precede any action in a judicial or quasi-judicial tribunal. Appeals of the Director's decision will be brought in the Superior Court of Thurston County. Review of the Director's decision will not be taken to Environmental and Land Use Hearings Office. Pending final decision of a dispute, the RECIPIENT agrees to proceed diligently with the performance of this Agreement and in accordance with the decision rendered. Nothing in this Agreement will be construed to limit the parties' choice of another mutually acceptable method, in addition to the dispute resolution procedure outlined above. 11. ENVIRONMENTAL DATA STANDARDS a) RECIPIENT shall prepare a Quality Assurance Project Plan (QAPP) for a project that collects or uses environmental measurement data. RECIPIENTS unsure about whether a QAPP is required for their project shall contact Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Page 32 of 37 the ECOLOGY Program issuing the grant or loan. If a QAPP is required, the RECIPIENT shall: • Use ECOLOGY's QAPP Template/Checklist provided by the ECOLOGY, unless ECOLOGY Quality Assurance (QA) officer or the Program QA coordinator instructs otherwise. • Follow ECOLOGY's Guidelines for Preparing Quality Assurance Project Plans for Environmental Studies, July 2004 (Ecology Publication No. 04-03-030). • Submit the QAPP to ECOLOGY for review and approval before the start of the work. b) RECIPIENT shall submit environmental data that was collected on a project to ECOLOGY using the Environmental Information Management system (EIM), unless the ECOLOGY Program instructs otherwise. The RECIPIENT must confirm with ECOLOGY that complete and correct data was successfully loaded into EIM, find instructions at: http://www.ecy.wa.gov/eim. c) RECIPIENT shall follow ECOLOGY's data standards when Geographic Information System (GIS) data is collected and processed. Guidelines for Creating and Accessing GIS Data are available at: https:Hecology.wa.gov/Research-Data/Data-resources/Geographic-Information-Systems-GIS/Standards. RECIPIENT, when requested by ECOLOGY, shall provide copies to ECOLOGY of all final GIS data layers, imagery, related tables, raw data collection files, map products, and all metadata and project documentation. 12. GOVERNING LAW This Agreement will be governed by the laws of the State of Washington, and the venue of any action brought hereunder will be in the Superior Court of Thurston County. 13. INDEMNIFICATION ECOLOGY will in no way be held responsible for payment of salaries, consultant's fees, and other costs related to the project described herein, except as provided in the Scope of Work. To the extent that the Constitution and laws of the State of Washington permit, each party will indemnify and hold the other harmless from and against any liability for any or all injuries to persons or property arising from the negligent act or omission of that party or that party's agents or employees arising out of this Agreement. 14. INDEPENDENT STATUS The employees, volunteers, or agents of each party who are engaged in the performance of this Agreement will continue to be employees, volunteers, or agents of that party and will not for any purpose be employees, volunteers, or agents of the other party. 15. KICKBACKS RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this Agreement to give up any part of the compensation to which he/she is otherwise entitled to or receive any fee, commission, or gift in return for award of a subcontract hereunder. 16. MINORITY AND WOMEN'S BUSINESS ENTERPRISES (MWBE) RECIPIENT is encouraged to solicit and recruit, to the extent possible, certified minority-owned (MBE) and women -owned (WBE) businesses in purchases and contracts initiated under this Agreement. Contract awards or rejections cannot be made based on MWBE participation; however, the RECIPIENT is encouraged to take the following actions, when possible, in any procurement under this Agreement: a) Include qualified minority and women's businesses on solicitation lists whenever they are potential sources of goods or services. b) Divide the total requirements, when economically feasible, into smaller tasks or quantities, to permit maximum participation by qualified minority and women's businesses. c) Establish delivery schedules, where work requirements permit, which will encourage participation of qualified Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton minority and women's businesses. d) Use the services and assistance of the Washington State Office of Minority and Women's Business Enterprises (OMWBE) (866-208-1064) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as appropriate. 17. ORDER OF PRECEDENCE In the event of inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) applicable federal and state statutes and regulations; (b) The Agreement; (c) Scope of Work; (d) Special Terms and Conditions; (e) Any provisions or terms incorporated herein by reference, including the "Administrative Requirements for Recipients of Ecology Grants and Loans"; and (f) the General Terms and Conditions. 18. PRESENTATION AND PROMOTIONAL MATERIALS ECOLOGY reserves the right to approve RECIPIENT's communication documents and materials related to the fulfillment of this Agreement: a) If requested, RECIPIENT shall provide a draft copy to ECOLOGY for review and approval ten (10) business days prior to production and distribution. b) RECIPIENT shall include time for ECOLOGY's review and approval process in their project timeline. c) If requested, RECIPIENT shall provide ECOLOGY two (2) final copies and an electronic copy of any tangible products developed. Copies include any printed materials, and all tangible products developed such as brochures, manuals, pamphlets, videos, audio tapes, CDs, curriculum, posters, media announcements, or gadgets with a message, such as a refrigerator magnet, and any online communications, such as web pages, blogs, and twitter campaigns. If it is not practical to provide a copy, then the RECIPIENT shall provide a description (photographs, drawings, printouts, etc.) that best represents the item. Any communications intended for public distribution that uses ECOLOGY's logo shall comply with ECOLOGY's graphic requirements and any additional requirements specified in this Agreement. Before the use of ECOLOGY's logo contact ECOLOGY for guidelines. RECIPIENT shall acknowledge in the communications that funding was provided by ECOLOGY. 19. PROGRESS REPORTING Page 33 of 37 a) RECIPIENT must satisfactorily demonstrate the timely use of funds by submitting payment requests and progress reports to ECOLOGY. ECOLOGY reserves the right to amend or terminate this Agreement if the RECIPIENT does not document timely use of funds. b) RECIPIENT must submit a progress report with each payment request. Payment requests will not be processed without a progress report. ECOLOGY will define the elements and frequency of progress reports. c) RECIPIENT shall use ECOLOGY's provided progress report format. d) Quarterly progress reports will cover the periods from January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31. Reports shall be submitted within thirty (30) days after the end of the quarter being reported. e) RECIPIENT must submit within thirty (30) days of the expiration date of the project, unless an extension has been approved by ECOLOGY, all financial, performance, and other reports required by the agreement and funding program guidelines. RECIPIENT shall use the ECOLOGY provided closeout report format. 20. PROPERTY RIGHTS a) Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable property under this Agreement, the RECIPIENT may copyright or patent the same but ECOLOGY retains a royalty free, nonexclusive, and irrevocable license to reproduce, publish, recover, or otherwise use the material(s) or property, and to Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Page 34 of 37 authorize others to use the same for federal, state, or local government purposes. b) Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish ECOLOGY information; present papers, lectures, or seminars involving information supplied by ECOLOGY; or use logos, reports, maps, or other data in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to ECOLOGY. c) Presentation and Promotional Materials. ECOLOGY shall have the right to use or reproduce any printed or graphic materials produced in fulfillment of this Agreement, in any manner ECOLOGY deems appropriate. ECOLOGY shall acknowledge the RECIPIENT as the sole copyright owner in every use or reproduction of the materials. d) Tangible Property Rights. ECOLOGY's current edition of "Administrative Requirements for Recipients of Ecology Grants and Loans," shall control the use and disposition of all real and personal property purchased wholly or in part with funds furnished by ECOLOGY in the absence of state and federal statutes, regulations, or policies to the contrary, or upon specific instructions with respect thereto in this Agreement. e) Personal Property Furnished by ECOLOGY. When ECOLOGY provides personal property directly to the RECIPIENT for use in performance of the project, it shall be returned to ECOLOGY prior to final payment by ECOLOGY. If said property is lost, stolen, or damaged while in the RECIPIENT's possession, then ECOLOGY shall be reimbursed in cash or by setoff by the RECIPIENT for the fair market value of such property. I) Acquisition Projects. The following provisions shall apply if the project covered by this Agreement includes funds for the acquisition of land or facilities: 1. RECIPIENT shall establish that the cost is fair value and reasonable prior to disbursement of funds provided for in this Agreement. 2. RECIPIENT shall provide satisfactory evidence of title or ability to acquire title for each parcel prior to disbursement of funds provided by this Agreement. Such evidence may include title insurance policies, Torrens certificates, or abstracts, and attorney's opinions establishing that the land is free from any impediment, lien, or claim which would impair the uses intended by this Agreement. g) Conversions. Regardless of the Agreement expiration date, the RECIPIENT shall not at any time convert any equipment, property, or facility acquired or developed under this Agreement to uses other than those for which assistance was originally approved without prior written approval of ECOLOGY. Such approval may be conditioned upon payment to ECOLOGY of that portion of the proceeds of the sale, lease, or other conversion or encumbrance which monies granted pursuant to this Agreement bear to the total acquisition, purchase, or construction costs of such property 21. RECORDS, AUDITS, AND INSPECTIONS RECIPIENT shall maintain complete program and financial records relating to this Agreement, including any engineering documentation and field inspection reports of all construction work accomplished. All records shall: a) Be kept in a manner which provides an audit trail for all expenditures. b) Be kept in a common file to facilitate audits and inspections. c) Clearly indicate total receipts and expenditures related to this Agreement. d) Be open for audit or inspection by ECOLOGY, or by any duly authorized audit representative of the State of Washington, for a period of at least three (3) years after the final grant payment or loan repayment, or any dispute resolution hereunder. RECIPIENT shall provide clarification and make necessary adjustments if any audits or inspections identify discrepancies in the records. ECOLOGY reserves the right to audit, or have a designated third party audit, applicable records to ensure that the state has been properly invoiced. Any remedies and penalties allowed by law to recover monies determined owed will be enforced. Repetitive instances of incorrect invoicing or inadequate records may be considered cause for termination. All work performed under this Agreement and any property and equipment purchased shall be made available to ECOLOGY and to any authorized state, federal or local representative for inspection at any time during the course of Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Page 35 of 37 this Agreement and for at least three (3) years following grant or loan termination or dispute resolution hereunder. RECIPIENT shall provide right of access to ECOLOGY, or any other authorized representative, at all reasonable times, in order to monitor and evaluate performance, compliance, and any other conditions under this Agreement. 22. RECOVERY OF FUNDS The right of the RECIPIENT to retain monies received as reimbursement payments is contingent upon satisfactory performance of this Agreement and completion of the work described in the Scope of Work. All payments to the RECIPIENT are subject to approval and audit by ECOLOGY, and any unauthorized expenditure(s) or unallowable cost charged to this Agreement shall be refunded to ECOLOGY by the RECIPIENT. RECIPIENT shall refund to ECOLOGY the full amount of any erroneous payment or overpayment under this Agreement. RECIPIENT shall refund by check payable to ECOLOGY the amount of any such reduction of payments or repayments within thirty (30) days of a written notice. Interest will accrue at the rate of twelve percent (12%) per year from the time ECOLOGY demands repayment of funds. Any property acquired under this Agreement, at the option of ECOLOGY, may become ECOLOGY's property and the RECIPIENT's liability to repay monies will be reduced by an amount reflecting the fair value of such property. 23. SEVERABILITY If any provision of this Agreement or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid provision, and to this end the provisions of this Agreement are declared to be severable. 24. STATE ENVIRONMENTAL POLICY ACT (SEPA) RECIPIENT must demonstrate to ECOLOGY's satisfaction that compliance with the requirements of the State Environmental Policy Act (Chapter 43.21C RCW and Chapter 197-11 WAC) have been or will be met. Any reimbursements are subject to this provision. 25. SUSPENSION When in the best interest of ECOLOGY, ECOLOGY may at any time, and without cause, suspend this Agreement or any portion thereof for a temporary period by written notice from ECOLOGY to the RECIPIENT. RECIPIENT shall resume performance on the next business day following the suspension period unless another day is specified by ECOLOGY. 26. SUSTAINABLE PRACTICES In order to sustain Washington's natural resources and ecosystems, the RECIPIENT is fully encouraged to implement sustainable practices and to purchase environmentally preferable products under this Agreement. a) Sustainable practices may include such activities as: use of clean energy, use of double -sided printing, hosting low impact meetings, and setting up recycling and composting programs. b) Purchasing may include such items as: sustainably produced products and services, EPEAT registered computers and imaging equipment, independently certified green cleaning products, remanufactured toner cartridges, products with reduced packaging, office products that are refillable, rechargeable, and recyclable, and 100% post -consumer recycled paper. For more suggestions visit ECOLOGY's web page: Green Purchasing, , https:Hecology.wa.gov/Regulations-Permits/Guidance-technical-assistance/Sustainable-purchasing. 27. TERMINATION a) For Cause ECOLOGY may terminate for cause this Agreement with a seven (7) calendar days prior written notification to the Version 10/30/2015 State of Washington Department of Ecology Page 36 of 37 Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton RECIPIENT, at the sole discretion of ECOLOGY, for failing to perform an Agreement requirement or for a material breach of any term or condition. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Failure to Commence Work. ECOLOGY reserves the right to terminate this Agreement if RECIPIENT fails to commence work on the project funded within four (4) months after the effective date of this Agreement, or by any date mutually agreed upon in writing for commencement of work, or the time period defined within the Scope of Work. Non -Performance. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance by the RECIPIENT of all of its obligations under this Agreement. In the event the RECIPIENT unjustifiably fails, in the opinion of ECOLOGY, to perform any obligation required of it by this Agreement, ECOLOGY may refuse to pay any further funds, terminate in whole or in part this Agreement, and exercise any other rights under this Agreement. Despite the above, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and the State of Washington because of any breach of this Agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. b) For Convenience ECOLOGY may terminate for convenience this Agreement, in whole or in part, for any reason when it is the best interest of ECOLOGY, with a thirty (30) calendar days prior written notification to the RECIPIENT, except as noted below. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Non -Allocation of Funds. ECOLOGY's ability to make payments is contingent on availability of funding. In the event funding from state, federal or other sources is withdrawn, reduced, or limited in any way after the effective date and prior to the completion or expiration date of this Agreement, ECOLOGY, at its sole discretion, may elect to terminate the Agreement, in whole or part, or renegotiate the Agreement, subject to new funding limitations or conditions. ECOLOGY may also elect to suspend performance of the Agreement until ECOLOGY determines the funding insufficiency is resolved. ECOLOGY may exercise any of these options with no notification or restrictions, although ECOLOGY will make a reasonable attempt to provide notice. In the event of termination or suspension, ECOLOGY will reimburse eligible costs incurred by the recipient/contractor through the effective date of termination or suspension. Reimbursed costs must be agreed to by ECOLOGY and the recipient/contractor. In no event shall ECOLOGY's reimbursement exceed ECOLOGY's total responsibility under the agreement and any amendments. If payments have been discontinued by ECOLOGY due to unavailable funds, the RECIPIENT shall not be obligated to repay monies which had been paid to the RECIPIENT prior to such termination. RECIPIENT's obligation to continue or complete the work described in this Agreement shall be contingent upon availability of funds by the RECIPIENT's governing body. c) By Mutual Agreement ECOLOGY and the RECIPIENT may terminate this Agreement, in whole or in part, at any time, by mutual written agreement. d) In Event of Termination All finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, reports or other materials prepared by the RECIPIENT under this Agreement, at the option of ECOLOGY, will become property of ECOLOGY and the RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00055 Project Title: East 11th Street Stormwater Treatment Design Recipient Name: City of Bremerton Page 37 of 37 completed on such documents and other materials. Nothing contained herein shall preclude ECOLOGY from demanding repayment of all funds paid to the RECIPIENT in accordance with Recovery of Funds, identified herein. 28. THIRD PARTY BENEFICIARY RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this Agreement, the state of Washington is named as an express third party beneficiary of such subcontracts with full rights as such. 29. WAIVER Waiver of a default or breach of any provision of this Agreement is not a waiver of any subsequent default or breach, and will not be construed as a modification of the terms of this Agreement unless stated as such in writing by the authorized representative of ECOLOGY. Version 10/30/2015 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Stormwater Financial Assistance Program Grant with the Washington State Department of Ecology for the Marine Drive & Kitsap Way Stormwater Low Impact Development (LID) and Treatment Retrofit Construction Ul Study Session Date: August 8, 2018 COUNCIL MEETING Date: Auaust 15. 2018 Department: Presenter: Phone: Public Works & Utilities Chance W Berthiaume (360) 473-5929 SUMMARY: The City has received a $664,747 Ecology Stormwater Financial Assistance Program (SFAP) grant to construct a previously designed Stormwater LID treatment system on Marine Drive. The treatment systems will be installed on Marine Drive between Dora and Rocky Point Rd and just south of Kelly Road, on Marine Drive prior to the outfall into Oyster Bay. A treatment system will also be installed on the north side of Kitsap Way just west of Oyster Bay Ave. N. to treat an area of runoff from Kitsap Way. ATTACHMENTS: 1) Project summary 2) Ecology contract WQC-2017-BremPW-00052: "Marine Drive Stormwater LID Treatment Retrofit" FISCAL IMPACTS (Include Budgeted Amount): $664,747 total project cost is funded with $498,560.25 from the Ecology grant and $166,186.75 matching funds. The grant match has been identified in the 2019 Storm Water Utility Capitol fund. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to accept the Washington State Department of Ecology Stormwater Financial Assistance Grant; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action MARINE DRIVE & KITSAP WAY STORMWATER TREATMENT RETROFIT CONSTRUCTION Project Scope: Active Grant Contract Oyster and Ostrich Bays have water quality problems that are exacerbated by the discharge of untreated stormwater. Ecolo- gy has awarded a $664,747 grant to complete construction of the designed system to the City of Bremerton Stormwater Pro- gram. This project will install one Modular Wetland System (MWS) & 250' of infiltration trench on Marine Drive at Dora Ave, and two Modular Wetlands Systems, south of Kelly Rd, to treat runoff prior to discharge into Oyster Bay. The MWS provides basic, enhanced, and phosphorus treatment, and will reduce fecal coliform in runoff from 34 acres that includes: 1.34 miles of urban roads and 17.4 acres of pollution generating impervious surface. The Kitsap Way Modular Wetland system will be installed in front of the Oyster Bay Inn on Kitsap Way to treat runoff from 1.5 acres of impervious area on Kitsap Way. Water Quality Total Maximum Daily Load (TMDL): Sinclair and Dyes Inlets are 303(d) Listed water bodies for elevated fecal coli- form (FC). Oyster and Ostrich Bays are con- nected to Dyes Inlet. In the 1960's FC and general pollution caused shellfish bed clo- sures. This project supports the water qual- ity cleanup plan. Combined Project Cost Budget: $664,747 Funding: 75% ($498K) Ecology SFAP Grant Stormwater Fund Match: 25% ($166K) Designer: Parametrix Inc, Bremerton Contractor: TBD Project Manager: Chance Berthiaume / Katie Ketterer MWS Treatment systems remove: 85% of total suspended solids (TSS) 66% dissolved copper, 50% total copper, 66% dissolved zinc, 69% total zinc, 95% motor oil / petroleum hydro- carbons, Total Phosphorus: 64% Ortho Phosphorus: 67% Nitrogen: 45% Phosphorus and nitrogen are nutri- ents that feed algae blooms, includ- ing cyanobacteria (blue-green toxic algae). The MWS will remove and retain debris, sediments, TSS, dissolved and particulate metals and nutrients including nitrogen and phosphorus, bacteria, BOD, oxygen demanding substances, organic compounds and hydrocarbons during frequent storm events and continuous dry weather a Ca h Basin — Pipe Figure 6 Kitsap We B Manhole—Delersion Line Contributing Basin K onttwiP�o�entinn Pnna T/)i Feet IGGa Kit—, Contributing Basin Ciry o! &remenan PROJECT SCHEDULE 2018-2019 Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sept Oct Key: Design/Ecology approval/Permitting Bid/Award MEMMM DEPARTMENT OF *a ECOLOGY "M State of Washington Agreement No. WQC-2017-BremPW-00052 WATER QUALITY COMBINED FINANCIAL ASSISTANCE AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF BREMERTON This is a binding Agreement entered into by and between the state of Washington, Department of Ecology, hereinafter referred to as "ECOLOGY," and City of Bremerton, hereinafter referred to as the "RECIPIENT," to carry out with the provided funds activities described herein. GENERAL INFORMATION Project Title: Total Cost: Total Eligible Cost: Ecology Share: Recipient Share: The Effective Date of this Agreement is: The Expiration Date of this Agreement is no later than: Project Type: Project Short Description: Marine Drive Stormwater LID and Treatment Retrofit $664,747.00 $664,747.00 $498,560.25 $166,186.75 07/01/2017 06/30/2020 Stormwater Facility This project will improve water quality in the Oyster Bay through the installation of modular wetlands and an infiltration trench at Marine Drive and Kitsap Way in the city of Bremerton. This project will provide treatment for total suspended solids (TSS), dissolved copper, dissolved zinc, and total phosphorus. Additional benefits of this project include the improved health of commercial shellfish beds in the area. Project Long Description: The Marine Drive basin consists of mixed residential and commercial areas. Stormwater runoff is conveyed to the Marine Drive outfall into Oyster Bay via a system of ditches, catch basins, and storm sewer pipes. Stormwater concerns include pollutants from roadways, roofs and landscapes that contain petroleum, polycyclic aromatic hydrocarbons (PAHs), metals, fertilizers, pesticides, and fecal coliform bacteria. Oyster Bay is included in the fecal coliform Total Maximum Daily Load (TMDL) plan for the Sinclair and Dyes inlets. This project is an integral part of a coordinated regional effort to reopen area commercial shellfish harvesting. State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton This project will improve water quality from Marine Drive and Kitsap Way by treating runoff from approximately 34 acres, including 1.34 miles of urban road surface and 18.6 acres of other impervious surfaces. The RECIPIENT will install modular wetland systems and an infiltration trench. In addition, a Stormtech chamber will be installed within the infiltration trench to increase trench storage capacity. For the 100 -year storm, the project will treat 50 percent of the Marine Drive basin and 100 percent of the Kitsap Way area. Overall Goal: This project will help protect and restore water quality in Washington by reducing stormwater impacts from existing infrastructure and development. Version 10/30/2015 Page 2 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton RECIPIENT INFORMATION Organization Name: City of Bremerton Federal Tax ID: 91-6001231 DUNS Number: 556846970 Mailing Address: 100 Oyster Bay Ave N Bremerton, Washington 98312 Physical Address: 100 Oyster Bay Ave N Bremerton, Washington 98312 Bremerton, Washington 98312 Organization Email: chance.berthiaume@ci.bremerton.wa.us Contacts Page 3 of 41 Project Manager Chance Berthiaume NPDES Stormwater Permit Coordinator 100 Oyster Bay Ave N Bremerton, Washington 98312 Email: chance.berthiaume(4�ci.bremerton.wa.us Phone: (360) 473-5929 Billing Contact Anna Cruz Accountant / Financial Analyst 345 6th Street, Suite 100 Bremerton, Washington 98337 Email: anna.cruz@ci.bremerton.wa.us Phone: (360) 473-2327 Authorized Chal Martin Signatory Public Works Director 345 6the Street, Suite 600 Bremerton, Washington 98337 Email: chal.martin@ci.bremerton.wa.us Phone: (360) 473-5758 Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton ECOLOGY INFORMATION Mailing Address: Department of Ecology Water Quality PO BOX 47600 Olympia, WA 98504-7600 Physical Address: Water Quality 300 Desmond Drive SE Lacey, WA 98503 Contacts Page 4 of 41 Version 10/30/2015 Cleo Neculae Project Manager 3190 - 160th Ave SE Bellevue, Washington 98008-5452 Email: cnec461@ecy.wa.gov Phone: (425) 649-7216 Layne Slone Financial Financial Manager Manager PO Box 47600 Olympia, Washington 98504-7600 Email: Inak461@ecy.wa.gov Phone: (360) 407-6225 Amanda Heye Technical Advisor PO Box 47600 Olympia, Washington 98504-7600 Email: ahey461@ecy.wa.gov Phone: (360) 407-6457 Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stonnwater LID and Treatment Retrofit Recipient Name: City of Bremerton AUTHORIZING SIGNATURES RECIPIENT agrees to furnish the necessary personnel, equipment, materials, services, and otherwise do all things necessary for or incidental to the performance of work as set forth in this Agreement. RECIPIENT acknowledges that they had the opportunity to review the entire Agreement, including all the terms and conditions of this Agreement, Scope of Work, attachments, and incorporated or referenced documents, as well as all applicable laws, statutes, rules, regulations, and guidelines mentioned in this Agreement. Furthermore, the RECIPIENT has read, understood, and accepts all requirements contained within this Agreement. This Agreement contains the entire understanding between the parties, and there are no other understandings or representations other than as set forth, or incorporated by reference, herein. No subsequent modifications or amendments to this agreement will be of any force or effect unless in writing, signed- by ignedby authorized representatives of the RECIPIENT and ECOLOGY and made a part of this agreement. ECOLOGY and RECIPIENT may change their respective staff contacts without the concurrence of either party. This Agreement shall be subject to the written approval of Ecology's authorized representative and shall not be binding until so approved. The signatories to this Agreement represent that they have the authority to execute this Agreement and bind their respective organizations to this Agreement. IN WITNESS WHEREOF: the parties hereto, having read this Agreement in its entirety, including all attachments, do agree in each and every particular and have thus set their hands hereunto. Washington State Department of Ecology LIM Heather R. Bartlett Water Quality Program Manager Template Approved to Form by Attorney General's Office Version 10/30/2015 Date City of Bremerton LIM Chal Martin Public Works Director Page 5 of 41 Date State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Greg Wheeler Page 6 of 41 Mayor Date Chance Berthiaume NPDES Stormwater Permit Coordinator Date Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Project Administration/Management Task Cost: $8,000.00 Task Description: A. The RECIPIENT shall carry out all work necessary to meet ECOLOGY grant or loan administration requirements. Responsibilities include, but are not limited to: maintenance of project records; submittal of requests for reimbursement and corresponding backup documentation; progress reports; and a recipient closeout report (including photos). B. The RECIPIENT shall maintain documentation demonstrating compliance with applicable procurement, contracting, and interlocal agreement requirements; application for, receipt of, and compliance with all required permits, licenses, easements, or property rights necessary for the project; and submittal of required performance items. C. The RECIPIENT shall manage the project. Efforts include, but are not limited to: conducting, coordinating, and scheduling project activities and assuring quality control. Every effort will be made to maintain effective communication with the RECIPIENT's designees; ECOLOGY; all affected local, state, or federal jurisdictions; and any interested individuals or groups. The RECIPIENT shall carry out this project in accordance with any completion dates outlined in this agreement. Task Goal Statement: Properly managed and fully documented project that meets ECOLOGY's grant or loan administrative requirements. Task Expected Outcome: * Timely and complete submittal of requests for reimbursement, quarterly progress reports, and RECIPIENT closeout report. * Properly maintained project documentation Recipient Task Coordinator: Chance Berthiaume Project Administration/Management Deliverables Page 7 of 41 Number Description Due Date 1.1 Quarterly Progress Reports 12 Recipient Closeout Report 1.3 Project Outcome Summary Report Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title Task Cost: $25,000.00 Design Plans and Specs, Environmental Review Task Description: The RECIPIENT shall ensure the following items are completed and provide the associated deliverables to ECOLOGY. The RECIPIENT must approve all materials prior to submitting them to ECOLOGY for acceptance. A. The RECIPIENT will coordinate the preparation and submittal of State Environmental Policy Act (SEPA) documentation. B. The RECIPIENT is responsible for application of, receipt of, and compliance with all required local, state, tribal and federal permits, licenses, easements, or property rights necessary for the project. C. The RECIPIENT will comply with Executive Order (05-05) cultural resources review requirements. To initiate cultural resources review the RECIPIENT will: 1. Submit an ECOLOGY 05-05/106 Form, or a cultural resources survey or assessment completed by a licensed archaeologist to ECOLOGY. All submitted materials must conform to the Washington State Standards for Cultural Resource Reporting (DAHP February 2014). 2. Develop and submit an Inadvertent Discovery Plan (IDP) to ECOLOGY. The RECIPIENT will ensure that all contractors and subcontractors have a copy of the completed IDP prior to and while working on-site. An IDP template may be found on the ECOLOGY website. Ground disturbing work (including geotechnical investigations) completed prior to receiving written notice to proceed from ECOLOGY shall not be eligible for reimbursement. D. The RECIPIENT will develop a project Design Report. Projects must be designed in accordance with the Stormwater Management Manual for Eastern Washington, Stormwater Management Manual for Western Washington, or equivalent manual. Project must be reviewed and accepted in writing by ECOLOGY to be eligible for reimbursement. The RECIPIENT will submit one digital copy of the items listed below to ECOLOGY for review. Reduce design figures to 11x17 inches in size and ensure they are legible. 1. Design Report. For a complete list of required design report elements refer to the ECOLOGY website. The RECIPIENT agrees to respond to ECOLOGY comments. The RECIPIENT must receive an Ecology Design Report Acceptance Letter prior to proceeding to 90 Percent design. 2. 90 Percent Design Package. At a minimum, this package must include 90 percent plans, specifications, engineer's opinion of cost which includes a schedule of eligible costs, and project construction schedule. For current bid inserts and specifications refer to the ECOLOGY website. Version 10/30/2015 Page 8 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton The RECIPIENT agrees to respond to ECOLOGY comments. The RECIPIENT must receive an Ecology 90 Percent Design Acceptance Letter prior to proceeding with Final Design. 3. The RECIPIENT will submit a digital copy of the Final Bid Package to ECOLOGY for review and acceptance prior to advertising the project. The Final Bid Package includes: project plans, specifications, engineer's opinion of cost including a schedule of eligible costs, and project construction schedule. Task Goal Statement: The RECIPIENT will complete all design, environmental review, and permitting tasks and respond to ECOLOGY comments in a timely manner. Task Expected Outcome: The project will meet the requirements set forth by the State Environmental Policy Act, cultural resource protection requirements, ECOLOGY water quality facility design standards, and all other applicable federal, state, and local laws and regulations. Version 10/30/2015 Page 9 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Recipient Task Coordinator: Chance Berthiaume Design Plans and Specs, Environmental Review Deliverables Page 10 of 41 Number Description Due Date 2.1 Copy of SEPA determination documentation. Upload to EAGL and notify ECOLOGY when upload is complete. 22 Submit ECOLOGY 05-05/106 Form and any supplemental cultural resources documentation including Cultural Resource surveys directly to the Ecology Project Manager. Upload the Final Determination Letter to EAGL. 2.3 Inadvertent Discovery Plan. Upload to EAGL and notify ECOLOGY when upload is complete. 2.4 Design Report. Upload to EAGL and notify ECOLOGY when upload is complete. 2.5 Responses to ECOLOGY Design Report comments. Upload to EAGL and notify ECOLOGY when upload is complete. 2.6 Ecology Design Report Acceptance Letter. Upload to EAGL and notify ECOLOGY when upload is complete. 2.7 90 Percent Design Package. Upload to EAGL and notify ECOLOGY when upload is complete. 2.8 Responses to ECOLOGY 90 Percent Design Plan comments. Upload to EAGL and notify ECOLOGY when upload is complete. 2.9 Ecology 90 Percent Design Acceptance Letter. Upload to EAGL and notify ECOLOGY when upload is complete. 2.10 List of permits acquired, and environmental review documents. Upload to EAGL and notify ECOLOGY when upload is complete. 2.11 Final Bid Package. Upload to EAGL and notify ECOLOGY when upload is complete. 2.12 Ecology Final Bid Package Acceptance Letter. Upload to EAGL and notify ECOLOGY when upload is complete. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton SCOPE OF WORK Task Number: 3 Task Cost: $109,958.00 Task Title: Construction Management Task Description: A. The RECIPIENT will provide construction oversight and management of the project. B. The RECIPIENT will submit a detailed construction quality assurance plan to ECOLOGY for review and acceptance before the start of construction. This plan must describe how the RECIPIENT will perform adequate and competent construction oversight. Once accepted by Ecology, upload to EAGL. C. The RECIPIENT will conduct a pre -construction conference meeting and invite ECOLOGY to attend. D. The RECIPIENT will submit an updated project schedule with projected cash flow to ECOLOGY within 30 days of the start of construction. The RECIPIENT will revise and/or update the project schedule whenever major changes occur and at a minimum of every three months. The RECIPIENT will submit the updated schedule to ECOLOGY with the quarterly report. When changes in the construction schedule affect previous cash flow estimates, The RECIPIENT must submit revised cash flow projections to ECOLOGY. E. Prior to execution, the RECIPIENT will submit in writing any eligible change orders that are a significant deviation from ECOLOGY -accepted plans and specifications for ECOLOGY review and acceptance for payment. ECOLOGY must review and accept all change orders that impact grant eligible activities prior to implementation. ECOLOGY must review all other change orders for technical merit and should be submitted within 30 days after execution. Change orders are to be signed by the contractor, the engineer (if appropriate), and the RECIPIENT prior to submittal to ECOLOGY for acceptance. F. The RECIPIENT will operate and maintain the constructed facility for the design life of the facility. Additionally, the RECIPIENT will develop and submit an operations and maintenance (O&M) plan for all Water Quality Best Management Practices to ECOLOGY for review. The O&M plan will describe how the RECIPIENT will ensure project success consistent with the design manual used. The O&M plan must also address long-term activities to assure ongoing pollutant removal and flow -control capability of the project in accordance with the design manual. G. Upon completion of construction, the RECIPIENT will provide to ECOLOGY: 1. A Stormwater Construction Completion Form signed by a professional engineer indicating that the project was completed in accordance with the plans and specifications and major change orders approved by ECOLOGY's Project Engineer and shown on the Record Drawings. The Stormwater Construction Completion Form can be found on the ECOLOGY website. 2. GIS compatible project area in Shapefile, Geodatabase file, or ECOLOGY -Approved Equivalent. The project area should include features for treatment facilities and contributing areas. Task Goal Statement: The RECIPIENT will oversee and manage construction, communicate with ECOLOGY in a timely fashion, and provide ECOLOGY with all requested project documentation. Version 10/30/2015 Page 11 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Task Expected Outcome: Project will be constructed on schedule and in accordance with accepted plans. Recipient Task Coordinator: Chance Berthiaume Construction Management Deliverables Page 12 of 41 Number Description Due Date 3.1 Construction Quality Assurance Plan. Submit to ECOLOGY for review and acceptance. Upload to EAGL and notify ECOLOGY when upload is complete. 32 Pre -construction conference meeting minutes. Upload to EAGL and notify ECOLOGY when upload is complete. 3.3 Project Schedule. Upload to EAGL using naming convention D3.3 SCHEDULE MO -DA -YEAR and notify ECOLOGY when upload is complete. 3.4 Revised cash flow estimates when changes in construction schedule occur. Upload to EAGL using naming convention D3.4 CASHFLOW MO -DA -YEAR and notify ECOLOGY when upload is complete. 3.5 Change Order(s). Upload to EAGL and notify ECOLOGY when upload is complete. 3.6 Copy of Facility Operation and Maintenance Plan. Submit to ECOLOGY for review and acceptance. Upload to EAGL and notify ECOLOGY when upload is complete. 3.7 Stormwater Construction Completion Form. Upload to EAGL and notify ECOLOGY when upload is complete. 3.8 Project Area Shapefile, Geodatabase file, or ECOLOGY -approved Equivalent. The project area should include features for treatment facilities and contributing areas. Upload to EAGL and notify ECOLOGY when upload is complete. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Construction Task Cost: $521,789.00 Task Description: A. The RECIPIENT will, in accordance with ECOLOGY -accepted plans and specifications, complete construction of the project. The construction project will include installation of modular wetland systems and an infiltration trench to mitigate runoff from approximately 18 acres of pollution generating impervious surfaces. B. Calculate and submit an equivalent new/re-development area for the completed retrofit project(s) using the methods outlined in Appendix N of the funding guidelines for State Fiscal Year 2017 Combined Water Quality Financial Assistance Program or other ECOLOGY -accepted method. Task Goal Statement: Construction of the project in accordance with ECOLOGY -accepted plans and specifications. Task Expected Outcome: Constructed project will provide water quality benefits including reductions in total suspended solids (TSS), dissolved copper, dissolved zinc, and total phosphorus. Recipient Task Coordinator: Chance Berthiaume Construction Deliverables Page 13 of 41 Number Description Due Date 4.1 Copy of the contract documents (e.g. bid announcement, bid award and bid tabulations). Upload to EAGL and notify ECOLOGY when upload is complete. 42 Copy of signed and dated construction contract. Upload to EAGL and notify ECOLOGY when upload is complete. 4.3 Construction progress reports and photos included in progress reports uploaded to EAGL. 4.4 Completed equivalent new/redevelopment area determination. Upload to EAGL and notify ECOLOGY when upload is complete. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton BUDGET Funding Distribution EG190004 NOTE: The above funding distribution number is used to idents this specific agreement and budget on payment remittances and may be referenced on other communications from ECOLOGY. Your agreement may have multiple funding distribution numbers to idents each budget. Funding Title: Funding Effective Date: Funding Source: Title: Type: Funding Source % Description: SFAP 07/01/2017 SFAP - SFY17 State 100% Funding Type: Grant Funding Expiration Date: 06/30/2020 Environmental Legacy Stewardship Account (ELSA) - State Approved Indirect Costs Rate: Approved State Indirect Rate: 0% Recipient Match %: 25% InKind Interlocal Allowed: No InKind Other Allowed: No Is this Funding Distribution used to match a federal grant? No SFAP Task Total Project Administration/Management $ 8,000.00 Design Plans and Specs, Environmental Review $ 25,000.00 Construction Management $ 109,958.00 Construction $ 521,789.00 Total: $ 664,747.00 Version 10/30/2015 Page 14 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Funding Distribution Summary Recipient / Ecology Share Page 15 of 41 Funding Distribution Name Recipient Match % Recipient Share Ecology Share Total SFAP 25.00 % $ 166,186.75 $ 498,560.25 $ 664,747.00 Total $ 166,186.75 $ 498,560.25 $ 664,747.00 AGREEMENT SPECIFIC TERMS AND CONDITIONS N/A SPECIAL TERMS AND CONDITIONS SECTION 1: DEFINITIONS Unless otherwise provided, the following terms will have the respective meanings for all purposes of this agreement: "Administration Charge" means a charge established in accordance with Chapter 90.50A RCW and Chapter 173-98 WAC, to be used to pay Ecology's cost to administer the State Revolving Fund by placing a percentage of the interest earned in an Administrative Charge Account. "Administrative Requirements" means the effective edition of ECOLOGY's Administrative Requirements for Recipients of Ecology Grants and Loans at the signing of this agreement. "Annual Debt Service" for any calendar year means for any applicable bonds or loans including the loan, all interest plus all principal due on such bonds or loans in such year. "Average Annual Debt Service" means, at the time of calculation, the sum of the Annual Debt Service for the remaining years of the loan to the last scheduled maturity of the loan divided by the number of those years. "Centennial Clean Water Program" means the state program funded from various state sources. "Contract Documents" means the contract between the RECIPIENT and the construction contractor for construction of the project. "Cost Effective Analysis" means a comparison of the relative cost -efficiencies of two or more potential ways of solving a water quality problem as described in Chapter 173-98-730 WAC. "Defease" or "Defeasance" means the setting aside in escrow or other special fund or account of sufficient investments and money dedicated to pay all principal of and interest on all or a portion of an obligation as it comes due. "Effective Date" means the earliest date on which eligible costs may be incurred. "Effective Interest Rate" means the total interest rate established by Ecology that includes the Administrative Charge. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton "Estimated Loan Amount" means the initial amount of funds loaned to the RECIPIENT. "Estimated Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Estimated Loan Amount. "Equivalency" means projects designated by ECOLOGY to meet additional federal requirements. "Final Accrued Interest" means the interest accrued beginning with the first disbursement of funds to the RECIPIENT through such time as the loan is officially closed out and a final loan repayment schedule is issued. "Final Loan Amount" means all principal of and interest on the loan from the Project Start Date through the Project Completion Date. "Final Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Final Loan Amount. "Forgivable Principal" means the portion of a loan that is not required to be paid back by the borrower. "General Obligation Debt" means an obligation of the RECIPIENT secured by annual ad valorem taxes levied by the RECIPIENT and by the full faith, credit, and resources of the RECIPIENT. "General Obligation Payable from Special Assessments Debt" means an obligation of the RECIPIENT secured by a valid general obligation of the Recipient payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. "Gross Revenue" means all of the earnings and revenues received by the RECIPIENT from the maintenance and operation of the Utility and all earnings from the investment of money on deposit in the Loan Fund, except (i) Utility Local Improvement Districts (ULID) Assessments, (ii) government grants, (iii) RECIPIENT taxes, (iv) principal proceeds of bonds and other obligations, or (v) earnings or proceeds (A) from any investments in a trust, Defeasance, or escrow fund created to Defease or refund Utility obligations or (B) in an obligation redemption fund or account other than the Loan Fund until commingled with other earnings and revenues of the Utility or (C) held in a special account for the purpose of paying a rebate to the United States Government under the Internal Revenue Code. "Guidelines" means the ECOLOGY's Funding Guidelines that that correlate to the State Fiscal Year in which the project is funded. "Initiation of Operation Date" means the actual date the Water Pollution Control Facility financed with proceeds of the loan begins to operate for its intended purpose. "Loan" means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund (Centennial) Loan made pursuant to this loan agreement. "Loan Amount" means either an Estimated Loan Amount or a Final Loan Amount, as applicable. Version 10/30/2015 Page 16 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton "Loan Fund" means the special fund of that name created by ordinance or resolution of the RECIPIENT for the repayment of the principal of and interest on the loan. "Loan Security" means the mechanism by which the RECIPIENT pledges to repay the loan. "Loan Term" means the repayment period of the loan. "Maintenance and Operation Expense" means all reasonable expenses incurred by the RECIPIENT in causing the Utility to be operated and maintained in good repair, working order, and condition including payments to other parties, but will not include any depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes. "Net Revenue" means the Gross Revenue less the Maintenance and Operation Expense. "Original Engineer's Estimate" means the engineer's estimate of construction costs included with bid documents. "Principal and Interest Account" means, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the loan fund to be first used to repay the principal of and interest on the loan. "Project" means the project described in this agreement. "Project Completion Date" means the date specified in the agreement on which the Scope of Work will be fully completed. "Project Schedule" means that schedule for the project specified in the agreement. "Reserve Account" means, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the loan fund to secure the payment of the principal of and interest on the loan. "Revenue -Secured Debt" means an obligation of the RECIPIENT secured by a pledge of the revenue of a utility and one not a general obligation of the RECIPIENT. "Risk -Based Determination" means an approach to sub -recipient monitoring and oversight based on risk factors associated to a RECIPIENT or project. "Scope of Work" means the tasks and activities constituting the project. "Section 319" means the section of the Clean Water Act that provides funding to address nonpoint sources of water pollution. "Senior Lien Obligations" means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of execution of this loan agreement (or subsequently issued on a parity therewith, including refunding obligations) or issued after the date of execution of this loan agreement having a claim or lien on the Gross Revenue of the Utility prior and superior to the claim or lien of the loan, subject only to Maintenance and Operation Expense. "State Water Pollution Control Revolving Fund (Revolving Fund)" means the water pollution control revolving fund established by Chapter 90.50A.020 RCW. Version 10/30/2015 Page 17 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton "Termination Date" means the effective date of ECOLOGY's termination of the agreement. "Termination Payment Date" means the date on which the RECIPIENT is required to repay to ECOLOGY any outstanding balance of the loan and all accrued interest. "Total Eligible Project Cost" means the sum of all costs associated with a water quality project that have been determined to be eligible for ECOLOGY grant or loan funding. "Total Project Cost" means the sum of all costs associated with a water quality project, including costs that are not eligible for ECOLOGY grant or loan funding. "ULID" means any utility local improvement district of the RECIPIENT created for the acquisition or construction of additions to and extensions and betterments of the Utility. "ULID Assessments" means all assessments levied and collected in any ULID. Such assessments are pledged to be paid into the Loan Fund (less any prepaid assessments permitted by law to be paid into a construction fund or account). ULID Assessments will include principal installments and any interest or penalties which may be due. "Utility" means the sewer system, stormwater system, or the combined water and sewer system of the RECIPIENT, the Net Revenue of which is pledged to pay and secure the loan. SECTION 2: THE FOLLOWING CONDITIONS APPLY TO ALL RECIPIENTS OF WATER QUALITY COMBINED FINANCIAL ASSISTANCE FUNDING. The Water Quality Financial Assistance Funding Guidelines are included in this agreement by reference and are available on ECOLOGY's Water Quality Program website. A. Architectural and Engineering Services: The RECIPIENT certifies by signing this agreement that the requirements of Chapter 39.80 RCW, "Contracts for Architectural and Engineering Services," have been, or shall be, met in procuring qualified architectural/engineenng services. The RECIPIENT shall identify and separate eligible and ineligible costs in the final architectural/engineering services contract and submit a copy of the contract to ECOLOGY. B. Best Management Practices (BMP) Implementation: If the RECIPIENT installs BMPs that are not approved by ECOLOGY prior to installation, the RECIPIENT assumes the risk that part or all of the reimbursement for that activity may be delayed or ineligible. For more details regarding BMP Implementation, please reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality Program funding website. C. Cultural Resources: The RECIPIENT shall: 1) The RECIPIENT shall comply with all applicable federal, state and local environmental laws, statutes, regulations, executive orders, and permits. 2) The RECIPIENT shall comply with Ecology's Archaeological Resource and Historic Property review process. The RECIPIENT agrees that in no case shall construction activities, ground disturbance, or excavation of any kind, begin until provisions of this process are complied with. The RECIPIENT is responsible for developing a complete Inadvertent Discovery Plan (IDP). The IDP must be immediately available upon request by any party. The IDP must be readily available and be implemented to address any discovery. The RECIPIENT shall implement the procedures in Version 10/30/2015 Page 18 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton the IDP, and immediately notify ECOLOGY, the Department of Archeology and Historic Preservation (DAHP), and tribal representatives, if human remains, cultural, or archeological resources are discovered in the course of ground disturbing activities. For more details regarding requirements under this provision, please reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality Program funding website. D. Electronic Fund Transfers: The RECIPIENT must register as a statewide vendor in order to receive payment reimbursement. Washington State's Department of Enterprise Services (DES) issues all payments. DES maintains a central vendor file for Washington State agency use to process vendor payments. The RECIPIENT can complete the registration process online at: http://des.wa.gov/services/ContractingPurchasing/Business/VendorPay/Pages/default.aspx. This registration process allows the RECIPIENT to sign up for direct deposit payments, also known as electronic fund transfers (EFT). If the RECIPIENT has questions about the vendor registration process or setting up direct deposit payments contact DES Payee Help Desk at (360) 664-7779 or payeehelpdesk(4�des.wa.gov. E. Equipment Purchase: Equipment not included in the scope of work or the Ecology approved construction plans and specifications, must be pre -approved by ECOLOGY's project manager before purchase. F. Funding Recognition: The RECIPIENT must inform the public about ECOLOGY or any EPA (see Section 3.13 for Section 319 funded or Section 5.E for SRF funded projects) funding participation in this project through the use of project signs, acknowledgement in published materials, reports, the news media, websites, or other public announcements. Projects addressing site-specific locations must utilize appropriately sized and weather -resistant signs. Sign logos are available from ECOLOGY's Financial Manager upon request. G. Growth Management Planning: The RECIPIENT certifies by signing this agreement that it is in compliance with the requirements of Chapter 36.70A RCW, "Growth Management Planning by Selected Counties and Cities." If the status of compliance changes, either through RECIPIENT or legislative action, the RECIPIENT shall notify ECOLOGY in writing of this change within 30 days. H. Interlocal: The RECIPIENT certifies by signing this agreement that all negotiated interlocal agreements necessary for the project are, or shall be, consistent with the terms of this agreement and Chapter 39.34 RCW, "Interlocal Cooperation Act." The RECIPIENT shall submit a copy of each interlocal agreement necessary for the project to ECOLOGY upon request. I. Lobbying and Litigation: Costs incurred for the purposes of lobbying or litigation are not eligible for funding under this agreement. J. Post Project Assessment Survey: The RECIPIENT agrees to participate in a brief survey regarding the key project results or water quality project outcomes and the status of long-term environmental results or goals from the project approximately three years after project completion. A representative from ECOLOGY's Water Quality Program may contact the RECIPIENT to request this data. ECOLOGY may also conduct site interviews and inspections, and may otherwise evaluate the project, as part of this assessment. K. Project Status Evaluation: ECOLOGY may evaluate the status of this project 18 months from the effective date of this agreement. ECOLOGY's Project Manager and Financial Manager will meet with the RECIPIENT to review spending trends, completion of outcome measures, and overall project administration and performance. If the RECIPIENT fails to make satisfactory progress toward achieving project outcomes, ECOLOGY may change the scope of work, reduce grant funds, or increase oversight measures. Version 10/30/2015 Page 19 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton L. Technical Assistance: Technical assistance for agriculture activities provided under the terms of this agreement shall be consistent with the current U.S. Natural Resource Conservation Service ("NRCS") Field Office Technical Guide for Washington State. However, ECOLOGY may accept as eligible technical assistance, proposed practices, or project designs that do not meet these standards if approved in writing by the NRCS and ECOLOGY. SECTION 3: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 AND ONLY CENTENNIAL CLEAN WATER FUNDED PROJECTS BEING USED TO MATCH SECTION 319 FUNDS. The RECIPIENT must submit the following documents to ECOLOGY before this agreement is signed by ECOLOGY: 1. Federal Funding Accountability and Transparency Act (FFATA) Form, available on the Water Quality Program website. 2. Clean Water Act Section 319 Initial Data Reporting Sheet or the "Section 319 Initial Data Reporting" form in EAGL. A. Data Reporting: The RECIPIENT must complete the "Section 319 Initial Data Reporting" form in EAGL before this agreement can be signed by Ecology. This form is used to gather general information about the project. B. Funding Recognition and Outreach: In addition to Section 2.F of these Terms and Conditions, the RECIPIENT shall provide signage that informs the public that the project is funded by EPA. The signage shall contain the EPA logo and follow usage requirements available at http://www2.epa.gov/stylebook/using-epa-seal-and-logo. To obtain the appropriate EPA logo or seal graphic file, the RECIPIENT may sent a request to their Ecology's Financial Manager. To increase public awareness of projects serving communities where English is not the predominant language, RECIPIENTS are encouraged to provide their outreach strategies communication in non-English languages. Translation costs for this purpose are allowable, provided the costs are reasonable. The RECIPIENT shall use the following paragraph in all reports, documents, and signage developed under this agreement: "This project has been funded wholly or in part by the United States Environmental Protection Agency under an assistance agreement to the Washington State Department of Ecology. The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the mention of trade names or commercial products constitute endorsement or recommendation for use." C. Load Reduction Reporting: The RECIPIENT shall complete the "Section 319 Annual Load Reduction Reporting" form in EAGL by January 15 of each year and at project close-out. ECOLOGY may hold reimbursements until the RECIPIENT has completed the form. This form is used to gather information on pollutant load reductions for each best management practice (BMP) installed as a part of this project. D. Time Extension: The RECIPIENT may request a one-time extension for up to 12 months. However, the time extension cannot exceed the time limitation established in EPA's assistance agreement. In the event a time extension is requested and approved by ECOLOGY, the RECIPIENT must complete all eligible work performed under this agreement by the expiration date. Version 10/30/2015 Page 20 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton SECTION 4: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 AND STATE REVOLVING FUND (SRF) LOAN FUNDED PROJECTS ONLY. A. Accounting Standards: The RECIPIENT shall maintain accurate records and accounts for the project (PROJECT Records) in accordance with Generally Accepted Accounting Principles (GAAP) as issued by the Governmental Accounting Standards Board (GASB), including standards related to the reporting of infrastructure assets or in accordance with the standards in Chapter 43.09.200 RCW "Local Government Accounting — Uniform System of Accounting". B. Audit Requirements: In accordance with 2 CFR 200.501(a), the RECIPIENT agrees to obtain a single audit from an independent auditor, if their organization expends $750,000 or more in total Federal funds in their fiscal year. The RECIPIENT must submit the form SF -SAC and a Single Audit Report Package within 9 months of the end of the fiscal year or 30 days after receiving the report from an independent auditor. The SF -SAC and a Single Audit Report Package MUST be submitted using the Federal Audit Clearinghouse's Internet Data Entry System available at: https://harvester.census.gov/fac/collect/ddeindex.html. For complete information on how to accomplish the single audit submissions, go to the Federal Audit Clearinghouse Web site: http://harvester.census.gov/fac/. C. Archaeological Resources and Historic Properties (Section 106): See Section 2.0 of the terms and conditions of this agreement, the RECIPIENT shall comply with the additional requirements under section 106 of the National Historic Preservation Act (NHPA, 36 CFR 800). D. Consultant Cap: The RECIPIENT shall ensure that loan or grant funds provided under this agreement to reimburse for costs incurred by individual consultants (excluding overhead) is limited to the maximum daily rate for Level IV of the Executive Schedule (formerly GS -18), to be adjusted annually. The Executive Schedule can be found at: https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate. This rate does not include transportation and subsistence costs for travel performed. Contracts for services awarded using the procurement requirements in Subpart D of 2 CFR 200 are not affected by this limitation unless the terms of the contract provide the RECIPIENT with responsibility for the selection, direction, and control of the individuals who shall be providing services under the contract at an hourly or daily rate of compensation. See 2 CFR 1500.9 for additional information. E. Data Universal Numbering System (DUNS) and Central Contractor Registration (CCR) Requirements: RECIPIENTS shall have a DUNS number. Unless exempted from this requirement under 2 CFR 25.110, the RECIPIENT must ensure that the organization's information in the System for Award Management (SAM), https://www.sam.gov, is kept current through project closeout. This requires that the RECIPIENT reviews and updates the information at least annually after the initial registration, and more frequently if information changes. F. Disadvantaged Business Enterprise (DBE): General Compliance, 40 CFR, Part 33. The RECIPIENT agrees to comply with the requirements of the Environmental Protection Agency's Program for Utilization of Small, Minority, and Women's Business Enterprises (MBE/WBE) 40CFR, Part 33 in procurement under this agreement. Six Good Faith Efforts, 40 CFR, Part 33, Subpart C. The RECIPIENT agrees to make the following good faith efforts whenever procuring construction, equipment, services and supplies under this agreement. Records documenting compliance with the following six good faith efforts shall be retained: 1) Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government Version 10/30/2015 Page 21 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton RECIPIENTS, this shall include placing Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. 2) Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date. 3) Consider in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, and State and Local Government RECIPIENTS, this shall include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process. 4) Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract is too large for one of these firms to handle individually. 5) Use services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce. 6) If the prime contractor awards subcontracts, require the prime contractor to take the five good faith efforts steps in paragraphs 1 through 5 above. The RECIPIENT agrees to submit ECOLOGY's Contractor Participation Report Form D with each payment request. Contract Administration Provisions, 40 CFR, Section 33.302. The RECIPIENT agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. Non-discrimination Provision. The RECIPIENT shall not discriminate on the basis of race, color, national origin or sex in the performance of this agreement. The RECIPIENT shall carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the RECIPIENT to carry out these requirements is a material breach of this agreement which may result in the termination of this contract or other legally available remedies. This does not preclude the RECIPIENT from enacting broader nondiscrimination protections. The RECIPIENT shall comply with all federal and state nondiscrimination laws, including, but not limited to Title VI and VII of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and Chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA). In the event of the RECIPIENT's noncompliance or refusal to comply with any applicable nondiscrimination law, regulation, or policy, this agreement may be rescinded, canceled, or terminated in whole or in part, and the RECIPIENT may be declared ineligible for further funding from ECOLOGY. The RECIPIENT shall, however, be given a reasonable time in which to cure this noncompliance. The RECIPIENT shall include the following terms and conditions in contracts with all contractors, subcontractors, Version 10/30/2015 Page 22 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton engineers, vendors, and any other entity for work or services pertaining to this agreement. "The Contractor will not discriminate on the basis of race, color, national origin or sex in the performance of this Contract. The Contractor will carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under Environmental Protection Agency financial agreements. Failure by the Contractor to carry out these requirements is a material breach of this Contract which may result in termination of this Contract or other legally available remedies." Bidder List, 40 CFR, Section 33.501(b) and (c). The RECIPIENT agrees to create and maintain a bidders list. The bidders list shall include the following information for all firms that bid or quote on prime contracts, or bid or quote subcontracts, including both MBE/WBEs and non-MBE/WBEs. 1. Entity's name with point of contact 2. Entity's mailing address, telephone number, and e-mail address 3. The procurement on which the entity bid or quoted, and when 4. Entity's status as an MBE/WBE or non-MBE/WBE G. Electronic and information Technology (EIT) Accessibility: RECIPIENTS shall ensure that loan funds provided under this agreement for costs in the development or purchase of EIT systems or products provide individuals with disabilities reasonable accommodations and an equal and effective opportunity to benefit from or participate in a program, including those offered through electronic and information technology as per Section 504 of the Rehabilitation Act, codified in 40 CFR Part 7. Systems or products funded under this agreement must be designed to meet the diverse needs of users without barriers or diminished function or quality. Systems shall include usability features or functions that accommodate the needs of persons with disabilities, including those who use assistive technology. H. Hotel -Motel Fire Safety Act: The RECIPIENT shall ensure that all space for conferences, meetings, conventions or training seminars funded in whole or in part with federal funds complies with the protection and control guidelines of the Hotel and Motel Fire Safety Act (15 USC 2225a, PL 101-391, as amended). Recipients may search the Hotel -Motel National Master List at http://www.usfa.dhs.gov/applications/hoteU to see if a property is in compliance, or to find other information about the Act. Pursuant to 15 USC 2225a. I. Trafficking In Persons: The RECIPIENT and RECIPIENT employees that are private entities shall not engage in forms of trafficking in persons during the period of time this agreement is effective. This includes, but is not limited to the procurement of a commercial sex act or forced labor. The RECIPIENT shall notify ECOLOGY immediately of any information received from any source alleging a violation under this provision. SECTION 5: THE FOLLOWING CONDITIONS APPLY TO STATE REVOLVING FUND (SRF) LOAN FUNDED PROJECTS ONLY. The RECIPIENT must submit the following documents/forms to ECOLOGY before this agreement is signed by ECOLOGY: 1. Opinion of RECIPIENT's Legal Council 2. Authorizing Ordinance or Resolution 3. Federal Funding Accountability and Transparency Act (FFATA) Form 4. CWSRF Federal Reporting Information form available in EAGL Version 10/30/2015 Page 23 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton 5. Fiscal Sustainability Plan Certification (only required if the project includes construction of a wastewater or stormwater facility construction) A. Alteration and Eligibility of Project: During the term of this agreement, the RECIPIENT (1) shall not materially alter the design or structural character of the project without the prior written approval of ECOLOGY and (2) shall take no action which would adversely affect the eligibility of the project as defined by applicable funding program rules and state statutes, or which would cause a violation of any covenant, condition, or provision herein. B. American Iron and Steel (Buy American): This loan provision applies to projects for the construction, alteration, maintenance, or repair of a "treatment works" as defined in the Federal Water Pollution Control Act (33 USC 1381 et seq.) The RECIPIENT shall ensure that all iron and steel products used in the project are produced in the United States. Iron and Steel products means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. The RECIPIENT may request waiver from this requirement from the Administrator of the Environmental Protection Agency. The RECIPIENT must coordinate all waiver requests through ECOLOGY. This provision does not apply if the engineering plans and specifications for the project were approved by ECOLOGY prior to January 17, 2014. ECOLOGY reserves the right to request documentation of RECIPIENT'S compliance with this provision. C. Authority of RECIPIENT: This agreement is authorized by the Constitution and laws of the state of Washington, including the RECIPIENT's authority, and by the RECIPIENT pursuant to the authorizing ordinance or resolution. The RECIPIENT shall submit a copy of the authorizing ordinance or resolution to the ECOLOGY Financial Manager before this agreement shall be signed by ECOLOGY. D. Fiscal Sustainability Plan Certification: The RECIPIENT shall submit a completed Fiscal Sustainability Plan Certification before this agreement is signed by ECOLOGY. The Fiscal Sustainability Plan Certification is available from the ECOLOGY Financial Manager or on the Water Quality Program website. E. Funding Recognition and Outreach: In addition to Section 2.F of these Terms and Conditions, the RECIPIENT agrees to comply with the EPA SRF Signage Guidance in order to enhance public awareness of EPA assistance agreements nationwide. The signage guidance can be found at: http://www. ecy.wa.gov/programs/wq/funding/FundPrgms/CW SRF/SignageGuidanceJune2015.pdf. F. Free Service: The RECIPIENT shall not furnish utility service to any customer free of charge if providing that free service affects the RECIPIENT's ability to meet the obligations of this agreement. G. Insurance: The RECIPIENT shall at all times carry fire and extended coverage, public liability, and property damage, and such other forms of insurance with responsible insurers and with policies payable to the RECIPIENT on such of the buildings, equipment, works, plants, facilities, and properties of the Utility as are ordinarily carried by municipal or privately -owned utilities engaged in the operation of like systems, and against such claims for damages as are ordinarily carried by municipal or privately -owned utilities engaged in the operation of like systems, or it shall self -insure or participate in an insurance pool or pools with reserves adequate, in the reasonable judgment of the RECIPIENT, to protect it against loss. H. Loan Interest Rate and Terms: This loan agreement shall remain in effect until the date of final repayment of the loan, unless terminated earlier according to the provisions herein. Version 10/30/2015 Page 24 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton When the Project Completion Date has occurred, ECOLOGY and the RECIPIENT shall execute an amendment to this loan agreement which details the final loan amount (Final Loan Amount), and ECOLOGY shall prepare a final loan repayment schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and all accrued interest to the computation date. The Estimated Loan Amount and the Final Loan Amount (in either case, as applicable, a "Loan Amount") shall bear interest based on the interest rate identified in this agreement as the "Effective Interest Rate," per annum, calculated on the basis of a 365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly based on the date that each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal installments semiannually over the term of this loan "Loan Term" as outlined in this agreement. I. Loan Repayment: Sources of Loan Repayment 1. Nature of RECIPIENT's Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified below and to perform and observe all of the other agreements and obligations on its part contained herein shall be absolute and unconditional, and shall not be subject to diminution by setoff, counterclaim, or abatement of any kind. To secure the repayment of the loan from ECOLOGY, the RECIPIENT agrees to comply with all of the covenants, agreements, and attachments contained herein. 2. For General Obligation. This loan is a General Obligation Debt of the RECIPIENT. 3. For General Obligation Payable from Special Assessments. This loan is a General Obligation Debt of the RECIPIENT payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. 4. For Revenue -Secured: Lien Position. This loan is a Revenue -Secured Debt of the RECIPIENT's Utility. This loan shall constitute a lien and charge upon the Net Revenue junior and subordinate to the lien and charge upon such Net Revenue of any Senior Lien Obligations. In addition, if this loan is also secured by Utility Local Improvement Districts (ULID) Assessments, this loan shall constitute a lien upon ULID Assessments in the ULID prior and superior to any other charges whatsoever. 5. Other Sources of Repayment. The RECIPIENT may repay any portion of the loan from any funds legally available to it. 6. Defeasance of the Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT shall not be entitled to, and shall not affect, an economic Defeasance of the loan. The RECIPIENT shall not advance refund the loan. If the RECIPIENT defeases or advance refunds the loan, it shall be required to use the proceeds thereof immediately upon their receipt, together with other available RECIPIENT funds, to repay both of the following: (i) The Loan Amount with interest (ii) Any other obligations of the RECIPIENT to ECOLOGY under this agreement, unless in its sole discretion ECOLOGY finds that repayment from those additional sources would not be in the public interest. Version 10/30/2015 Page 25 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Failure to repay the Loan Amount plus interest within the time specified in ECOLOGY's notice to make such repayment shall incur Late Charges and shall be treated as a Loan Default. 7. Refinancing or Early Repayment of the Project. So long as ECOLOGY shall hold this loan, the RECIPIENT shall give ECOLOGY thirty days written notice if the RECIPIENT intends to refinance or make early repayment of the loan. Method and Conditions on Repayments 1. Semiannual Payments. Notwithstanding any other provision of this agreement, the first semiannual payment of principal and interest on this loan shall be due and payable no later than one year after the project completion date or initiation of operation date, whichever comes first. Thereafter, equal payments shall be due every six months. If the due date for any semiannual payment falls on a Saturday, Sunday, or designated holiday for Washington State agencies, the payment shall be due on the next business day for Washington State agencies. Payments shall be mailed to: Department of Ecology Cashiering Unit P.O. Box 47611 Olympia WA 98504-7611 In lieu of mailing payments, electronic fund transfers can be arranged by working with ECOLOGY's Financial Manager. No change to the amount of the semiannual principal and interest payments shall be made without a formal amendment to this agreement. The RECIPIENT shall continue to make semiannual payments based on this agreement until the amendment is effective, at which time the RECIPIENT's payments shall be made pursuant to the amended agreement. 2. Late Charges. If any amount of the Final Loan Amount or any other amount owed to ECOLOGY pursuant to this agreement remains unpaid after it becomes due and payable, ECOLOGY may assess a late charge. The late charge shall be one percent per month on the past due amount starting on the date the debt becomes past due and until it is paid in full. 3. Repayment Limitations. Repayment of the loan is subject to the following additional limitations, among others: those on defeasance, refinancing and advance refunding, termination, and default and recovery of payments. 4. Prepayment of Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT may prepay the entire unpaid principal balance of and accrued interest on the loan or any portion of the remaining unpaid principal balance of the Loan Amount. Any prepayments on the loan shall be applied first to any accrued interest due and then to the outstanding principal balance of the Loan Amount. If the RECIPIENT elects to prepay the entire remaining unpaid balance and accrued interest, the RECIPIENT shall first contact ECOLOGY's Revenue/Receivable Manager of the Fiscal Office. Version 10/30/2015 Page 26 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton J. Loan Security Due Regard: For loans secured with a Revenue Obligation: The RECIPIENT shall exercise due regard for Maintenance and Operation Expense and the debt service requirements of the Senior Lien Obligations and any other outstanding obligations pledging the Gross Revenue of the Utility, and it has not obligated itself to set aside and pay into the loan Fund a greater amount of the Gross Revenue of the Utility than, in its judgment, shall be available over and above such Maintenance and Operation Expense and those debt service requirements. Where collecting adequate gross utility revenue requires connecting additional users, the RECIPIENT shall require the sewer system connections necessary to meet debt obligations and expected operation and maintenance expenses. Levy and Collection of Taxes (if used to secure the repayment of the loan): For so long as the loan is outstanding, the RECIPIENT irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of its electors on all of the taxable property within the boundaries of the RECIPIENT in an amount sufficient, together with other money legally available and to be used therefore, to pay when due the principal of and interest on the loan, and the full faith, credit and resources of the RECIPIENT are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. Not an Excess Indebtedness: For loans secured with a general obligation pledge or a general obligation pledge on special assessments: The RECIPIENT agrees that this agreement and the loan to be made do not create an indebtedness of the RECIPIENT in excess of any constitutional or statutory limitations. Pledge of Net Revenue and ULID Assessments in the ULID (if used to secure the repayment of this loan): For so long as the loan is outstanding, the RECIPIENT irrevocably pledges the Net Revenue of the Utility, including applicable ULID Assessments in the ULID, to pay when due the principal of and interest on the loan. Reserve Requirement: For loans that are Revenue -Secured Debt with terms greater than five years, the RECIPIENT must accumulate a reserve for the loan equivalent to at least the Average Annual Debt Service on the loan during the first five years of the repayment period of the loan. This amount shall be deposited in a Reserve Account in the Loan Fund in approximately equal annual payments commencing within one year after the initiation of operation or the project completion date, whichever comes first. "Reserve Account" means, for a loan that constitutes Revenue -Secured Debt, an account of that name created in the Loan Fund to secure the payment of the principal and interest on the loan. The amount on deposit in the Reserve Account may be applied by the RECIPIENT (1) to make, in part or in full, the final repayment to ECOLOGY of the loan amount or, (2) if not so applied, for any other lawful purpose of the RECIPIENT once the Loan Amount, plus interest and any other amounts owing to ECOLOGY, have been paid in full. Utility Local Improvement District (ULID) Assessment Collection (if used to secure the repayment of the loan): All ULID Assessments in the ULID shall be paid into the loan Fund and used to pay the principal of and interest on the loan. The ULID Assessments in the ULID may be deposited into the Reserve Account to satisfy a Reserve Requirement if a Reserve Requirement is applicable. K. Maintenance and Operation of a Funded Utility: The RECIPIENT shall at all times maintain and keep a funded Utility in good repair, working order and condition and also shall at all times operate the Utility and the business in an efficient manner and at a reasonable cost. L. Opinion of RECIPIENT's Legal Counsel: The RECIPIENT must submit an "Opinion of Legal Counsel to the Version 10/30/2015 Page 27 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton RECIPIENT" to ECOLOGY before this agreement shall be signed. ECOLOGY will provide the form. M. Prevailing Wage (Davis -Bacon Act): The RECIPIENT agrees, by signing this agreement, to comply with the Davis -Bacon Act prevailing wage requirements. This applies to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by the State Revolving Fund as authorized by Section 513, title VI of the Federal Water Pollution Control Act (33 U.S.C. 1372). Laborers and mechanics employed by contractors and subcontractors shall be paid wages not less often than once a week and at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor. The RECIPIENT shall obtain the wage determination for the area in which the project is located prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation). These wage determinations shall be incorporated into solicitations and any subsequent contracts. The RECIPIENT shall ensure that the required EPA contract language regarding Davis -Bacon Wages is in all contracts and sub contracts in excess of $2,000. The RECIPIENT shall maintain records sufficient to document compliance with the Davis -Bacon Act, and make such records available for review upon request. The RECIPIENT also agrees, by signing this agreement, to comply with State Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable. Compliance may include the determination whether the project involves "public work" and inclusion of the applicable prevailing wage rates in the bid specifications and contracts. The RECIPIENT agrees to maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and make such records available for review upon request. N. Litigation; Authority: No litigation is now pending, or to the RECIPIENT's knowledge, threatened, seeking to restrain, or enjoin: (i) the execution of this agreement; or (ii) the fixing or collection of the revenues, rates, and charges or the formation of the ULID and the levy and collection of ULID Assessments therein pledged to pay the principal of and interest on the loan (for revenue secured lien obligations); or (iii) the levy and collection of the taxes pledged to pay the principal of and interest on the loan (for general obligation -secured loans and general obligation payable from special -assessment -secured loans); or (iv) in any manner questioning the proceedings and authority under which the agreement, the loan, or the project are authorized. Neither the corporate existence or boundaries of the RECIPIENT nor the title of its present officers to their respective offices is being contested. No authority or proceeding for the execution of this agreement has been repealed, revoked, or rescinded. O. Representations and Warranties: The RECIPIENT represents and warrants to ECOLOGY as follows: Application: Material Information. All information and materials submitted by the RECIPIENT to ECOLOGY in connection with its loan application were, when made, and are, as of the date the RECIPIENT signs this agreement, true and correct. There is no material adverse information relating to the RECIPIENT, the project, the loan, or this agreement known to the RECIPIENT which has not been disclosed in writing to ECOLOGY. Existence; Authority. It is a duly formed and legally existing municipal corporation or political subdivision of the Version 10/30/2015 Page 28 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton state of Washington or a federally recognized Indian Tribe. It has full corporate power and authority to execute, deliver, and perform all of its obligations under this agreement and to undertake the project identified herein. Certification. Each payment request shall constitute a certification by the RECIPIENT to the effect that all representations and warranties made in this loan agreement remain true as of the date of the request and that no adverse developments, affecting the financial condition of the RECIPIENT or its ability to complete the project or to repay the principal of or interest on the loan, have occurred since the date of this loan agreement. Any changes in the RECIPIENT's financial condition shall be disclosed in writing to ECOLOGY by the RECIPIENT in its request for payment. P. Sale or Disposition of Utility: The RECIPIENT shall not sell, transfer, or otherwise dispose of any of the works, plant, properties, facilities, or other part of the Utility or any real or personal property comprising a part of the Utility unless: 1. The facilities or property transferred are not material to the operation of the Utility, or have become unserviceable, inadequate, obsolete, or unfit to be used in the operation of the Utility or are no longer necessary, material, or useful to the operation of the Utility; or 2. The aggregate depreciated cost value of the facilities or property being transferred in any fiscal year comprises no more than three percent of the total assets of the Utility; or 3. The RECIPIENT receives from the transferee an amount equal to an amount which will be in the same proportion to the net amount of Senior Lien Obligations and this LOAN then outstanding (defined as the total amount outstanding less the amount of cash and investments in the bond and loan funds securing such debt) as the Gross Revenue of the Utility from the portion of the Utility sold or disposed of for the preceding year bears to the total Gross Revenue for that period. 4. Expressed written agreement by the DEPARTMENT. The proceeds of any transfer under this paragraph must be used (1) to redeem promptly, or irrevocably set aside for the redemption of, Senior Lien Obligations and to redeem promptly the loan, and (2) to provide for part of the cost of additions to and betterments and extensions of the Utility. Q. Sewer -Use Ordinance or Resolution: If not already in existence, the RECIPIENT shall adopt and shall enforce a sewer -use ordinance or resolution. Such ordinance or resolution shall be submitted to ECOLOGY upon request. The sewer use ordinance must include provisions to: 1) Prohibit the introduction of toxic or hazardous wastes into the RECIPIENT's sewer system. 2) Prohibit inflow of stormwater. 3) Require that new sewers and connections be properly designed and constructed. R. Termination and Default: Termination and Default Events For Insufficient ECOLOGY or RECIPIENT Funds. ECOLOGY may terminate this loan agreement for insufficient ECOLOGY or RECIPIENT funds. Version 10/30/2015 Page 29 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton 2. For Failure to Commence Work. ECOLOGY may terminate this loan agreement for failure of the RECIPIENT to commence project work. 3. Past Due Payments. The RECIPIENT shall be in default of its obligations under this loan agreement when any loan repayment becomes 60 days past due. 4. Other Cause. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance in full by the RECIPIENT of all of its obligations under this loan agreement. The RECIPIENT shall be in default of its obligations under this loan agreement if, in the opinion of ECOLOGY, the RECIPIENT has unjustifiably failed to perform any obligation required of it by this loan agreement. Procedures for Termination. If this loan agreement is terminated prior to project completion, ECOLOGY shall provide to the RECIPIENT a written notice of termination at least five working days prior to the effective date of termination (the "Termination Date"). The written notice of termination by the ECOLOGY shall specify the Termination Date and, when applicable, the date by which the RECIPIENT must repay any outstanding balance of the loan and all accrued interest (the "Termination Payment Date"). Termination and Default Remedies No Further Payments. On and after the Termination Date, or in the event of a default event, ECOLOGY may, at its sole discretion, withdraw the loan and make no further payments under this agreement. Repayment Demand. In response to an ECOLOGY initiated termination event, or in response to a loan default event, ECOLOGY may at its sole discretion demand that the RECIPIENT repay the outstanding balance of the Loan Amount and all accrued interest. Interest after Repayment Demand. From the time that ECOLOGY demands repayment of funds, amounts owed by the RECIPIENT to ECOLOGY shall accrue additional interest at the rate of one percent per month, or fraction thereof. Accelerate Repayments. In the event of a default, ECOLOGY may, in its sole discretion, declare the principal of and interest on the loan immediately due and payable, subject to the prior lien and charge of any outstanding Senior Lien Obligation upon the Net Revenue. That is, the loan is not subject to acceleration so long as any Senior Lien Obligations are outstanding. Repayments not made immediately upon such acceleration will incur Late Charges. Late Charges. All amounts due to ECOLOGY and not paid by the RECIPIENT by the Termination Payment Date or after acceleration following a default event, as applicable, shall incur late charges. Intercept State Funds. In the event of a default event and in accordance with Chapter 90.50A.060 RCW, "Defaults," any state funds otherwise due to the RECIPIENT may, at ECOLOGY's sole discretion, be withheld and applied to the repayment of the loan. Property to ECOLOGY. In the event of a default event and at the option of ECOLOGY, any personal property (equipment) acquired under this agreement may, in ECOLOGY's sole discretion, become ECOLOGY's property. In that circumstance, ECOLOGY shall reduce the RECIPIENT's liability to repay money by an amount reflecting the fair value of such property. Version 10/30/2015 Page 30 of 41 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Documents and Materials. If this agreement is terminated, all finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT shall, at the option of ECOLOGY, become ECOLOGY property. The RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Collection and Enforcement Actions. In the event of a default event, the state of Washington reserves the right to take any actions it deems necessary to collect the amounts due, or to become due, or to enforce the performance and observance of any obligation by the RECIPIENT, under this agreement. Fees and Expenses. In any action to enforce the provisions of this agreement, reasonable fees and expenses of attorneys and other reasonable expenses (including, without limitation, the reasonably allocated costs of legal staff) shall be awarded to the prevailing party as that term is defined in Chapter 4.84.330 RCW. Damages. Notwithstanding ECOLOGY's exercise of any or all of the termination or default remedies provided in this agreement, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and/or the state of Washington because of any breach of this agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. S. User -Charge System: The RECIPIENT certifies that it has the legal authority to establish and implement a user -charge system and shall adopt a system of user -charges to assure that each user of the utility shall pay its proportionate share of the cost of operation and maintenance, including replacement during the design life of the project. In addition, the RECIPIENT shall regularly evaluate the user -charge system, at least annually, to ensure the system provides adequate revenues necessary to operate and maintain the utility, to establish a reserve to pay for replacement, to establish the required Loan Reserve Account, and to repay the loan. WATER QUALITY COMBINED FINANCIAL ASSISTANCE TERMS AND CONDITIONS LAST UPDATED ON 10/04/2016 GENERAL FEDERAL CONDITIONS If a portion or all of the funds for this agreement are provided through federal funding sources or this agreement is used to match a federal grant award, the following terms and conditions apply to you. A. CERTIFICATION REGARDING SUSPENSION. DEBARMENT. INELIGIBILITY OR VOLUNTARY Page 31 of 41 EXCLUSION: 1. The RECIPIENT/CONTRACTOR, by signing this agreement, certifies that it is not suspended, debarred, proposed for debarment, declared ineligible or otherwise excluded from contracting with the federal government, or from receiving contracts paid for with federal funds. If the RECIPIENT/CONTRACTOR is unable to certify to the statements contained in the certification, they must provide an explanation as to why they cannot. 2. The RECIPIENT/CONTRACTOR shall provide immediate written notice to ECOLOGY if at any time the RECIPIENT/CONTRACTOR learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 3. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Page 32 of 41 person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact ECOLOGY for assistance in obtaining a copy of those regulations. 4. The RECIPIENT/CONTRACTOR agrees it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under the applicable Code of Federal Regulations, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. 5. The RECIPIENT/CONTRACTOR further agrees by signing this agreement, that it will include this clause titled "CERTIFICATION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY EXCLUSION" without modification in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 6. Pursuant to 2CFR180.330, the RECIPIENT/CONTRACTOR is responsible for ensuring that any lower tier covered transaction complies with certification of suspension and debarment requirements. 7. RECIPIENT/CONTRACTOR acknowledges that failing to disclose the information required in the Code of Federal Regulations may result in the delay or negation of this funding agreement, or pursuance of legal remedies, including suspension and debarment. 8. RECIPIENT/CONTRACTOR agrees to keep proof in its agreement file, that it, and all lower tier recipients or contractors, are not suspended or debarred, and will make this proof available to ECOLOGY before requests for reimbursements will be approved for payment. RECIPIENT/CONTRACTOR must run a search in <http://www.sam.gov> and print a copy of completed searches to document proof of compliance. B. FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) REPORTING REQUIREMENTS: CONTRACTOR/RECIPIENT must complete the FFATA Data Collection Form (ECY 070-395) and return it with the signed agreement to ECOLOGY. Any CONTRACTOR/RECIPIENT that meets each of the criteria below must report compensation for its five top executives using the FFATA Data Collection Form. • Receives more than $25,000 in federal funds under this award. • Receives more than 80 percent of its annual gross revenues from federal funds. • Receives more than $25,000,000 in annual federal funds. Ecology will not pay any invoices until it has received a completed and signed FFATA Data Collection Form. Ecology is required to report the FFATA information for federally funded agreements, including the required DUNS number, at www.fsrs.gov <http://www.fsrs.gov/> within 30 days of agreement signature. The FFATA information will be available to the public at www.usaspending. o�ttp://www.usaspending.gov/>. For more details on FFATA requirements, see www.fsrs.gov <httn://www.fsrs.gov/>. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton GENERAL TERMS AND CONDITIONS Pertaining to Grant and Loan Agreements With the state of Washington, Department of Ecology GENERAL TERMS AND CONDITIONS AS OF LAST UPDATED 1/22/2018 VERSION 1. ADMINISTRATIVE REQUIREMENTS a) RECIPIENT shall follow the "Administrative Requirements for Recipients of Ecology Grants and Loans — EAGL Edition." (https://fortress.wa.gov/ecy/publications/SummaryPages/1701004.html) b) RECIPIENT shall complete all activities funded by this Agreement and be fully responsible for the proper management of all funds and resources made available under this Agreement. c) RECIPIENT agrees to take complete responsibility for all actions taken under this Agreement, including ensuring all subgrantees and contractors comply with the terms and conditions of this Agreement. ECOLOGY reserves the right to request proof of compliance by subgrantees and contractors. d) RECIPIENT's activities under this Agreement shall be subject to the review and approval by ECOLOGY for the extent and character of all work and services. Page 33 of 41 2. AMENDMENTS AND MODIFICATIONS This Agreement may be altered, amended, or waived only by a written amendment executed by both parties. No subsequent modification(s) or amendment(s) of this Agreement will be of any force or effect unless in writing and signed by authorized representatives of both parties. ECOLOGY and the RECIPIENT may change their respective staff contacts and administrative information without the concurrence of either party. 3. ARCHAEOLOGICAL AND CULTURAL RESOURCES RECIPIENT shall take reasonable action to avoid, minimize, or mitigate adverse effects to archeological and historic resources. The RECIPIENT must agree to hold harmless the State of Washington in relation to any claim related to historical or cultural artifacts discovered, disturbed, or damaged due to the RECIPIENT's project funded under this Agreement. RECIPIENT shall: a) Contact the ECOLOGY Program issuing the grant or loan to discuss any Cultural Resources requirements for their project: • For capital construction projects or land acquisitions for capital construction projects, if required, comply with Governor Executive Order 05-05, Archaeology and Cultural Resources. • For projects with any federal involvement, if required, comply with the National Historic Preservation Act. • Any cultural resources federal or state requirements must be completed prior to the start of any work on the project site. b) If required by the ECOLOGY Program, submit an Inadvertent Discovery Plan (IDP) to ECOLOGY prior to implementing any project that involves ground disturbing activities. ECOLOGY will provide the IDP form. RECIPIENT shall: • Keep the IDP at the project site. • Make the IDP readily available to anyone working at the project site. • Discuss the IDP with staff and contractors working at the project site. • Implement the IDP when cultural resources or human remains are found at the project site. c) If any archeological or historic resources are found while conducting work under this Agreement: • Immediately stop work and notify the ECOLOGY Program, the Department of Archaeology and Historic Preservation at (360) 586-3064, any affected Tribe, and the local government. d) If any human remains are found while conducting work under this Agreement: Version 10/30/2015 State of Washington Department of Ecology Page 34 of 41 Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton • Immediately stop work and notify the local Law Enforcement Agency or Medical Examiner/Coroner's Office, and then the ECOLOGY Program. e) Comply with RCW 27.53, RCW 27.44.055, and RCW 68.50.645, and all other applicable local, state, and federal laws protecting cultural resources and human remains. 4. ASSIGNMENT No right or claim of the RECIPIENT arising under this Agreement shall be transferred or assigned by the RECIPIENT. 5. COMMUNICATION RECIPIENT shall make every effort to maintain effective communications with the RECIPIENT's designees, ECOLOGY, all affected local, state, or federal jurisdictions, and any interested individuals or groups. 6. COMPENSATION a) Any work performed prior to effective date of this Agreement will be at the sole expense and risk of the RECIPIENT. ECOLOGY must sign the Agreement before any payment requests can be submitted. b) Payments will be made on a reimbursable basis for approved and completed work as specified in this Agreement. c) RECIPIENT is responsible to determine if costs are eligible. Any questions regarding eligibility should be clarified with ECOLOGY prior to incurring costs. Costs that are conditionally eligible require approval by ECOLOGY prior to expenditure. d) RECIPIENT shall not invoice more than once per month unless agreed on by ECOLOGY. e) ECOLOGY will not process payment requests without the proper reimbursement forms, Progress Report and supporting documentation. ECOLOGY will provide instructions for submitting payment requests. I) ECOLOGY will pay the RECIPIENT thirty (30) days after receipt of a properly completed request for payment. g) RECIPIENT will receive payment through Washington State Department of Enterprise Services' Statewide Payee Desk. RECIPIENT must register as a payee by submitting a Statewide Payee Registration form and an IRS W-9 form at the website, http://www.des.wa.gov/services/ContractingPurchasing/BusinessNendorPay/Pages/default.aspx. For any questions about the vendor registration process contact the Statewide Payee Help Desk at (360) 407-8180 or email payeehelpdesk@watech.wa.gov. h) ECOLOGY may, at its sole discretion, withhold payments claimed by the RECIPIENT if the RECIPIENT fails to satisfactorily comply with any term or condition of this Agreement. i) Monies withheld by ECOLOGY may be paid to the RECIPIENT when the work described herein, or a portion thereof, has been completed if, at ECOLOGY's sole discretion, such payment is reasonable and approved according to this Agreement, as appropriate, or upon completion of an audit as specified herein. j) RECIPIENT must submit within thirty (30) days after the expiration date of this Agreement, all financial, performance, and other reports required by this agreement. Failure to comply may result in delayed reimbursement. 7. COMPLIANCE WITH ALL LAWS RECIPIENT agrees to comply fully with all applicable federal, state and local laws, orders, regulations, and permits related to this Agreement, including but not limited to: a) RECIPIENT agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington which affect wages and job safety. b) RECIPIENT agrees to be bound by all applicable federal and state laws, regulations, and policies against discrimination. c) RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. d) RECIPIENT agrees to secure and provide assurance to ECOLOGY that all the necessary approvals and permits required by authorities having jurisdiction over the project are obtained. RECIPIENT must include time in their project timeline for the permit and approval processes. Version 10/30/2015 State of Washington Department of Ecology Page 35 of 41 Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton ECOLOGY shall have the right to immediately terminate for cause this Agreement as provided herein if the RECIPIENT fails to comply with above requirements. If any provision of this Agreement violates any statute or rule of law of the state of Washington, it is considered modified to conform to that statute or rule of law. 8. CONFLICT OF INTEREST RECIPIENT and ECOLOGY agree that any officer, member, agent, or employee, who exercises any function or responsibility in the review, approval, or carrying out of this Agreement, shall not have any personal or financial interest, direct or indirect, nor affect the interest of any corporation, partnership, or association in which he/she is a part, in this Agreement or the proceeds thereof. 9. CONTRACTING FOR GOODS AND SERVICES RECIPIENT may contract to buy goods or services related to its performance under this Agreement. RECIPIENT shall award all contracts for construction, purchase of goods, equipment, services, and professional architectural and engineering services through a competitive process, if required by State law. RECIPIENT is required to follow procurement procedures that ensure legal, fair, and open competition. RECIPIENT must have a standard procurement process or follow current state procurement procedures. RECIPIENT may be required to provide written certification that they have followed their standard procurement procedures and applicable state law in awarding contracts under this Agreement. ECOLOGY reserves the right to inspect and request copies of all procurement documentation, and review procurement practices related to this Agreement. Any costs incurred as a result of procurement practices not in compliance with state procurement law or the RECIPIENT's normal procedures may be disallowed at ECOLOGY's sole discretion. 10. DISPUTES When there is a dispute with regard to the extent and character of the work, or any other matter related to this Agreement the determination of ECOLOGY will govern, although the RECIPIENT shall have the right to appeal decisions as provided for below: a) RECIPIENT notifies the funding program of an appeal request. b) Appeal request must be in writing and state the disputed issue(s). c) RECIPIENT has the opportunity to be heard and offer evidence in support of its appeal. d) ECOLOGY reviews the RECIPIENT's appeal. e) ECOLOGY sends a written answer within ten (10) business days, unless more time is needed, after concluding the review. The decision of ECOLOGY from an appeal will be final and conclusive, unless within thirty (30) days from the date of such decision, the RECIPIENT furnishes to the Director of ECOLOGY a written appeal. The decision of the Director or duly authorized representative will be final and conclusive. The parties agree that this dispute process will precede any action in a judicial or quasi-judicial tribunal. Appeals of the Director's decision will be brought in the Superior Court of Thurston County. Review of the Director's decision will not be taken to Environmental and Land Use Hearings Office. Pending final decision of a dispute, the RECIPIENT agrees to proceed diligently with the performance of this Agreement and in accordance with the decision rendered. Nothing in this Agreement will be construed to limit the parties' choice of another mutually acceptable method, in addition to the dispute resolution procedure outlined above. 11. ENVIRONMENTAL DATA STANDARDS a) RECIPIENT shall prepare a Quality Assurance Project Plan (QAPP) for a project that collects or uses environmental measurement data. RECIPIENTS unsure about whether a QAPP is required for their project shall contact Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Page 36 of 41 the ECOLOGY Program issuing the grant or loan. If a QAPP is required, the RECIPIENT shall: • Use ECOLOGY's QAPP Template/Checklist provided by the ECOLOGY, unless ECOLOGY Quality Assurance (QA) officer or the Program QA coordinator instructs otherwise. • Follow ECOLOGY's Guidelines for Preparing Quality Assurance Project Plans for Environmental Studies, July 2004 (Ecology Publication No. 04-03-030). • Submit the QAPP to ECOLOGY for review and approval before the start of the work. b) RECIPIENT shall submit environmental data that was collected on a project to ECOLOGY using the Environmental Information Management system (EIM), unless the ECOLOGY Program instructs otherwise. The RECIPIENT must confirm with ECOLOGY that complete and correct data was successfully loaded into EIM, find instructions at: http://www.ecy.wa.gov/eim. c) RECIPIENT shall follow ECOLOGY's data standards when Geographic Information System (GIS) data is collected and processed. Guidelines for Creating and Accessing GIS Data are available at: https:Hecology.wa.gov/Research-Data/Data-resources/Geographic-Information-Systems-GIS/Standards. RECIPIENT, when requested by ECOLOGY, shall provide copies to ECOLOGY of all final GIS data layers, imagery, related tables, raw data collection files, map products, and all metadata and project documentation. 12. GOVERNING LAW This Agreement will be governed by the laws of the State of Washington, and the venue of any action brought hereunder will be in the Superior Court of Thurston County. 13. INDEMNIFICATION ECOLOGY will in no way be held responsible for payment of salaries, consultant's fees, and other costs related to the project described herein, except as provided in the Scope of Work. To the extent that the Constitution and laws of the State of Washington permit, each party will indemnify and hold the other harmless from and against any liability for any or all injuries to persons or property arising from the negligent act or omission of that party or that party's agents or employees arising out of this Agreement. 14. INDEPENDENT STATUS The employees, volunteers, or agents of each party who are engaged in the performance of this Agreement will continue to be employees, volunteers, or agents of that party and will not for any purpose be employees, volunteers, or agents of the other party. 15. KICKBACKS RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this Agreement to give up any part of the compensation to which he/she is otherwise entitled to or receive any fee, commission, or gift in return for award of a subcontract hereunder. 16. MINORITY AND WOMEN'S BUSINESS ENTERPRISES (MWBE) RECIPIENT is encouraged to solicit and recruit, to the extent possible, certified minority-owned (MBE) and women -owned (WBE) businesses in purchases and contracts initiated under this Agreement. Contract awards or rejections cannot be made based on MWBE participation; however, the RECIPIENT is encouraged to take the following actions, when possible, in any procurement under this Agreement: a) Include qualified minority and women's businesses on solicitation lists whenever they are potential sources of goods or services. b) Divide the total requirements, when economically feasible, into smaller tasks or quantities, to permit maximum participation by qualified minority and women's businesses. c) Establish delivery schedules, where work requirements permit, which will encourage participation of qualified Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton minority and women's businesses. d) Use the services and assistance of the Washington State Office of Minority and Women's Business Enterprises (OMWBE) (866-208-1064) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as appropriate. 17. ORDER OF PRECEDENCE In the event of inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) applicable federal and state statutes and regulations; (b) The Agreement; (c) Scope of Work; (d) Special Terms and Conditions; (e) Any provisions or terms incorporated herein by reference, including the "Administrative Requirements for Recipients of Ecology Grants and Loans"; and (f) the General Terms and Conditions. 18. PRESENTATION AND PROMOTIONAL MATERIALS ECOLOGY reserves the right to approve RECIPIENT's communication documents and materials related to the fulfillment of this Agreement: a) If requested, RECIPIENT shall provide a draft copy to ECOLOGY for review and approval ten (10) business days prior to production and distribution. b) RECIPIENT shall include time for ECOLOGY's review and approval process in their project timeline. c) If requested, RECIPIENT shall provide ECOLOGY two (2) final copies and an electronic copy of any tangible products developed. Copies include any printed materials, and all tangible products developed such as brochures, manuals, pamphlets, videos, audio tapes, CDs, curriculum, posters, media announcements, or gadgets with a message, such as a refrigerator magnet, and any online communications, such as web pages, blogs, and twitter campaigns. If it is not practical to provide a copy, then the RECIPIENT shall provide a description (photographs, drawings, printouts, etc.) that best represents the item. Any communications intended for public distribution that uses ECOLOGY's logo shall comply with ECOLOGY's graphic requirements and any additional requirements specified in this Agreement. Before the use of ECOLOGY's logo contact ECOLOGY for guidelines. RECIPIENT shall acknowledge in the communications that funding was provided by ECOLOGY. 19. PROGRESS REPORTING Page 37 of 41 a) RECIPIENT must satisfactorily demonstrate the timely use of funds by submitting payment requests and progress reports to ECOLOGY. ECOLOGY reserves the right to amend or terminate this Agreement if the RECIPIENT does not document timely use of funds. b) RECIPIENT must submit a progress report with each payment request. Payment requests will not be processed without a progress report. ECOLOGY will define the elements and frequency of progress reports. c) RECIPIENT shall use ECOLOGY's provided progress report format. d) Quarterly progress reports will cover the periods from January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31. Reports shall be submitted within thirty (30) days after the end of the quarter being reported. e) RECIPIENT must submit within thirty (30) days of the expiration date of the project, unless an extension has been approved by ECOLOGY, all financial, performance, and other reports required by the agreement and funding program guidelines. RECIPIENT shall use the ECOLOGY provided closeout report format. 20. PROPERTY RIGHTS a) Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable property under this Agreement, the RECIPIENT may copyright or patent the same but ECOLOGY retains a royalty free, nonexclusive, and irrevocable license to reproduce, publish, recover, or otherwise use the material(s) or property, and to Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Page 38 of 41 authorize others to use the same for federal, state, or local government purposes. b) Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish ECOLOGY information; present papers, lectures, or seminars involving information supplied by ECOLOGY; or use logos, reports, maps, or other data in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to ECOLOGY. c) Presentation and Promotional Materials. ECOLOGY shall have the right to use or reproduce any printed or graphic materials produced in fulfillment of this Agreement, in any manner ECOLOGY deems appropriate. ECOLOGY shall acknowledge the RECIPIENT as the sole copyright owner in every use or reproduction of the materials. d) Tangible Property Rights. ECOLOGY's current edition of "Administrative Requirements for Recipients of Ecology Grants and Loans," shall control the use and disposition of all real and personal property purchased wholly or in part with funds furnished by ECOLOGY in the absence of state and federal statutes, regulations, or policies to the contrary, or upon specific instructions with respect thereto in this Agreement. e) Personal Property Furnished by ECOLOGY. When ECOLOGY provides personal property directly to the RECIPIENT for use in performance of the project, it shall be returned to ECOLOGY prior to final payment by ECOLOGY. If said property is lost, stolen, or damaged while in the RECIPIENT's possession, then ECOLOGY shall be reimbursed in cash or by setoff by the RECIPIENT for the fair market value of such property. I) Acquisition Projects. The following provisions shall apply if the project covered by this Agreement includes funds for the acquisition of land or facilities: 1. RECIPIENT shall establish that the cost is fair value and reasonable prior to disbursement of funds provided for in this Agreement. 2. RECIPIENT shall provide satisfactory evidence of title or ability to acquire title for each parcel prior to disbursement of funds provided by this Agreement. Such evidence may include title insurance policies, Torrens certificates, or abstracts, and attorney's opinions establishing that the land is free from any impediment, lien, or claim which would impair the uses intended by this Agreement. g) Conversions. Regardless of the Agreement expiration date, the RECIPIENT shall not at any time convert any equipment, property, or facility acquired or developed under this Agreement to uses other than those for which assistance was originally approved without prior written approval of ECOLOGY. Such approval may be conditioned upon payment to ECOLOGY of that portion of the proceeds of the sale, lease, or other conversion or encumbrance which monies granted pursuant to this Agreement bear to the total acquisition, purchase, or construction costs of such property 21. RECORDS, AUDITS, AND INSPECTIONS RECIPIENT shall maintain complete program and financial records relating to this Agreement, including any engineering documentation and field inspection reports of all construction work accomplished. All records shall: a) Be kept in a manner which provides an audit trail for all expenditures. b) Be kept in a common file to facilitate audits and inspections. c) Clearly indicate total receipts and expenditures related to this Agreement. d) Be open for audit or inspection by ECOLOGY, or by any duly authorized audit representative of the State of Washington, for a period of at least three (3) years after the final grant payment or loan repayment, or any dispute resolution hereunder. RECIPIENT shall provide clarification and make necessary adjustments if any audits or inspections identify discrepancies in the records. ECOLOGY reserves the right to audit, or have a designated third party audit, applicable records to ensure that the state has been properly invoiced. Any remedies and penalties allowed by law to recover monies determined owed will be enforced. Repetitive instances of incorrect invoicing or inadequate records may be considered cause for termination. All work performed under this Agreement and any property and equipment purchased shall be made available to ECOLOGY and to any authorized state, federal or local representative for inspection at any time during the course of Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Page 39 of 41 this Agreement and for at least three (3) years following grant or loan termination or dispute resolution hereunder. RECIPIENT shall provide right of access to ECOLOGY, or any other authorized representative, at all reasonable times, in order to monitor and evaluate performance, compliance, and any other conditions under this Agreement. 22. RECOVERY OF FUNDS The right of the RECIPIENT to retain monies received as reimbursement payments is contingent upon satisfactory performance of this Agreement and completion of the work described in the Scope of Work. All payments to the RECIPIENT are subject to approval and audit by ECOLOGY, and any unauthorized expenditure(s) or unallowable cost charged to this Agreement shall be refunded to ECOLOGY by the RECIPIENT. RECIPIENT shall refund to ECOLOGY the full amount of any erroneous payment or overpayment under this Agreement. RECIPIENT shall refund by check payable to ECOLOGY the amount of any such reduction of payments or repayments within thirty (30) days of a written notice. Interest will accrue at the rate of twelve percent (12%) per year from the time ECOLOGY demands repayment of funds. Any property acquired under this Agreement, at the option of ECOLOGY, may become ECOLOGY's property and the RECIPIENT's liability to repay monies will be reduced by an amount reflecting the fair value of such property. 23. SEVERABILITY If any provision of this Agreement or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid provision, and to this end the provisions of this Agreement are declared to be severable. 24. STATE ENVIRONMENTAL POLICY ACT (SEPA) RECIPIENT must demonstrate to ECOLOGY's satisfaction that compliance with the requirements of the State Environmental Policy Act (Chapter 43.21C RCW and Chapter 197-11 WAC) have been or will be met. Any reimbursements are subject to this provision. 25. SUSPENSION When in the best interest of ECOLOGY, ECOLOGY may at any time, and without cause, suspend this Agreement or any portion thereof for a temporary period by written notice from ECOLOGY to the RECIPIENT. RECIPIENT shall resume performance on the next business day following the suspension period unless another day is specified by ECOLOGY. 26. SUSTAINABLE PRACTICES In order to sustain Washington's natural resources and ecosystems, the RECIPIENT is fully encouraged to implement sustainable practices and to purchase environmentally preferable products under this Agreement. a) Sustainable practices may include such activities as: use of clean energy, use of double -sided printing, hosting low impact meetings, and setting up recycling and composting programs. b) Purchasing may include such items as: sustainably produced products and services, EPEAT registered computers and imaging equipment, independently certified green cleaning products, remanufactured toner cartridges, products with reduced packaging, office products that are refillable, rechargeable, and recyclable, and 100% post -consumer recycled paper. For more suggestions visit ECOLOGY's web page: Green Purchasing, , https:Hecology.wa.gov/Regulations-Permits/Guidance-technical-assistance/Sustainable-purchasing. 27. TERMINATION a) For Cause ECOLOGY may terminate for cause this Agreement with a seven (7) calendar days prior written notification to the Version 10/30/2015 State of Washington Department of Ecology Page 40 of 41 Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton RECIPIENT, at the sole discretion of ECOLOGY, for failing to perform an Agreement requirement or for a material breach of any term or condition. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Failure to Commence Work. ECOLOGY reserves the right to terminate this Agreement if RECIPIENT fails to commence work on the project funded within four (4) months after the effective date of this Agreement, or by any date mutually agreed upon in writing for commencement of work, or the time period defined within the Scope of Work. Non -Performance. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance by the RECIPIENT of all of its obligations under this Agreement. In the event the RECIPIENT unjustifiably fails, in the opinion of ECOLOGY, to perform any obligation required of it by this Agreement, ECOLOGY may refuse to pay any further funds, terminate in whole or in part this Agreement, and exercise any other rights under this Agreement. Despite the above, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and the State of Washington because of any breach of this Agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. b) For Convenience ECOLOGY may terminate for convenience this Agreement, in whole or in part, for any reason when it is the best interest of ECOLOGY, with a thirty (30) calendar days prior written notification to the RECIPIENT, except as noted below. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Non -Allocation of Funds. ECOLOGY's ability to make payments is contingent on availability of funding. In the event funding from state, federal or other sources is withdrawn, reduced, or limited in any way after the effective date and prior to the completion or expiration date of this Agreement, ECOLOGY, at its sole discretion, may elect to terminate the Agreement, in whole or part, or renegotiate the Agreement, subject to new funding limitations or conditions. ECOLOGY may also elect to suspend performance of the Agreement until ECOLOGY determines the funding insufficiency is resolved. ECOLOGY may exercise any of these options with no notification or restrictions, although ECOLOGY will make a reasonable attempt to provide notice. In the event of termination or suspension, ECOLOGY will reimburse eligible costs incurred by the recipient/contractor through the effective date of termination or suspension. Reimbursed costs must be agreed to by ECOLOGY and the recipient/contractor. In no event shall ECOLOGY's reimbursement exceed ECOLOGY's total responsibility under the agreement and any amendments. If payments have been discontinued by ECOLOGY due to unavailable funds, the RECIPIENT shall not be obligated to repay monies which had been paid to the RECIPIENT prior to such termination. RECIPIENT's obligation to continue or complete the work described in this Agreement shall be contingent upon availability of funds by the RECIPIENT's governing body. c) By Mutual Agreement ECOLOGY and the RECIPIENT may terminate this Agreement, in whole or in part, at any time, by mutual written agreement. d) In Event of Termination All finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, reports or other materials prepared by the RECIPIENT under this Agreement, at the option of ECOLOGY, will become property of ECOLOGY and the RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2017-BremPW-00052 Project Title: Marine Drive Stormwater LID and Treatment Retrofit Recipient Name: City of Bremerton Page 41 of 41 completed on such documents and other materials. Nothing contained herein shall preclude ECOLOGY from demanding repayment of all funds paid to the RECIPIENT in accordance with Recovery of Funds, identified herein. 28. THIRD PARTY BENEFICIARY RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this Agreement, the state of Washington is named as an express third party beneficiary of such subcontracts with full rights as such. 29. WAIVER Waiver of a default or breach of any provision of this Agreement is not a waiver of any subsequent default or breach, and will not be construed as a modification of the terms of this Agreement unless stated as such in writing by the authorized representative of ECOLOGY. Version 10/30/2015 AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: Stormwater Financial Assistance Program Grant with the Washington State Department of Ecology for the High Efficiency Compact Vacuum Sweeper A5 Study Session Date: August 8, 2018 COUNCIL MEETING Date: Auaust 15. 2018 Department: Presenter: Phone: Public Works & Utilities Chance W Berthiaume (360) 473-5929 SUMMARY: The City has received a $92,000 Ecology Stormwater Financial Assistance Program (SFAP) grant to pay for the purchase, operation, and maintenance of a Compact High Efficiency Sweeper. The sweeper will be small enough to access sidewalks, parking garages, the boardwalk, and other areas that the larger street sweepers cannot clean. ATTACHMENTS: 1) Project summary 2) Ecology contract WQC-2016-BremPW-00213: "Compact High Efficiency Vacuum Sweeper" FISCAL IMPACTS (Include Budgeted Amount): $92,000 total project cost is funded with $69,000 from the Ecology grant and $23,000 matching funds from Stormwater Capital Fund 484. This purchase has been identified in the 2019 Storm Water Utility Capitol fund. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to accept the Washington State Department of Ecology Stormwater Financial Assistance Grant; and authorize the Mayor to finalize and execute the agreement with substantially the same terms and conditions as presented. COUNCIL ACTION: ❑ Approve Form Updated 01/02/2018 ❑ Deny ❑ Table ❑ Continue ❑ No Action HIGH EFFICIENCY COMPACT SWEEPER DEPARTMENT OF ECOLOGY STORMWATER FINANCIAL ASSISTANCE PROGRAM (SFAP) GRANT Project Scope: Agave grant contract The City proposes to purchase and operate a high efficiency vacuum compact sweeper to sweep hard to access areas throughout Bremerton. This equipment will be used to maintain pervious sidewalks, and newer limited access areas where pervious surfaces have been installed on city owned property. It will also be used on sidewalks, public commons areas such as the downtown convention center, parks areas, boardwalk, Manette Bridge sidewalk, Lebo and Wheaton Way sidewalks, and in city owned parking garages. The terms of the Ecology contract require the city to purchase the equipment and oper- ate it for 3 years with quarterly performance reporting and reimbursement requests. Current cost of this type of sweeper is $125K and the grant will cover $69K of the purchase and operational cost. Only operators from Facilities, Parks, Streets, and Stormwater that have been trained and certified to operate this machine will be allowed access and use. The sweeper will be able to assist in cleaning 5.5' wide sidewalks through- out the city, will improve city appear- ance, and reduce sediment and debris that currently enters the stormwater system from inaccessible locations. Water Quality Total Maximum Daily Load (TMDL): Sinclair and Dyes Inlets are 303(d) listed water bodies for elevated fecal coli- form (FC). A combination of FC and general pollution have closed shellfish beds since the 1960's. The addition of this sweeper to the sweeping program supports the water quality cleanup plan, and will help improve city-wide appearance. Combined Project Cost Budget: $125,000 (estimated cost for machine in images) Funding: $69,000 Ecology SFAP Grant (to be reimbursed over 3 years) Stormwater Program Cost: $56,000 Project Manager: Chance Berthiaume Chance. Berthiaume@ci.bremerton.wa.us Will be used by Stormwater, Facilities, Parks, and Streets PROJECT SCHEDULE (tentative) 2018-2019 (contract ends 6/30/2022) Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sept Oct Purchase equipment and Key: Grant contract approval/acceptance Product selection/approval begin operating DEPARTMENT OF *a ECOLOGY "M State of Washington Agreement No. WQC-2016-BremPW-00213 WATER QUALITY COMBINED FINANCIAL ASSISTANCE AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF BREMERTON This is a binding Agreement entered into by and between the state of Washington, Department of Ecology, hereinafter referred to as "ECOLOGY," and City of Bremerton, hereinafter referred to as the "RECIPIENT," to carry out with the provided funds activities described herein. GENERAL INFORMATION Project Title: Total Cost: Total Eligible Cost: Ecology Share: Recipient Share: The Effective Date of this Agreement is: The Expiration Date of this Agreement is no later than: Project Type: Compact High Efficiency Vacuum Sweeper $92,000.00 $92,000.00 $69,000.00 $23,000.00 07/01/2018 06/30/2022 Stormwater Activity Project Short Description: This project will help prevent total suspended solids (TSS) from entering Sinclair and Dyes inlets by removing pollutants from the stormwater system and providing pollutant source control through an enhanced street -sweeping program in the city of Bremerton. Project Long Description: The city of Bremerton is surrounded by Sinclair and Dyes inlets, which have a fecal coliform bacteria Total Maximum Daily Load (TMDL) plan. Stormwater runoff impacts water quality through sediment deposition, trash, and debris from human activity, and fecal waste from the city's abundant bird population. The city has many miles of walk paths, sidewalks, commons areas, plazas, and parking lots that are inaccessible to street sweepers. An estimated 20 percent of the limited access impervious surfaces are spot cleaned regularly; the remaining 80 percent of these surfaces cannot be cleaned effectively. Currently, the RECIPIENT's staff sweep and pick up trash five days per week for 600,000 square feet of impervious surfaces. Staff use brooms, State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton backpack blowers, and manually collect sediment and debris. Approximately 600 pounds of debris and sediment are collected annually. The current sweeping program meets NPDES Phase II Municipal Stormwater Permit requirements. The RECIPIENT will exceed the permit requirements by adding a high efficiency compact vacuum sweeper to the stormwater program. The sweeper will increase the effectiveness of the sweeping program. This will allow staff to address the remaining 80 percent of the areas not regularly cleaned, and improve water quality, as well as the overall cleanliness of the city. Overall Goal: This project will protect Sinclair and Dyes inlets by enhancing pollutant source control. Version 10/30/2015 Page 2 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton RECIPIENT INFORMATION Organization Name: City of Bremerton Federal Tax ID: 91-6001231 DUNS Number: 556846970 Mailing Address: 100 Oyster Bay Ave N Bremerton, Washington 98312 Physical Address: 100 Oyster Bay Ave N Bremerton, Washington 98312 Bremerton, Washington 98312 Organization Email: chance.berthiaume@ci.bremerton.wa.us Contacts Page 3 of 38 Project Manager Chance Berthiaume NPDES Stormwater Permit Coordinator 100 Oyster Bay Ave N Bremerton, Washington 98312 Email: chance.berthiaume(4�ci.bremerton.wa.us Phone: (360) 473-5929 Billing Contact Anna Cruz Accountant / Financial Analyst 345 6th Street, Suite 100 Bremerton, Washington 98337 Email: anna.cruz@ci.bremerton.wa.us Phone: (360) 473-2327 Authorized Chal Martin Signatory Public Works Director 345 6the Street, Suite 600 Bremerton, Washington 98337 Email: chal.martin@ci.bremerton.wa.us Phone: (360) 473-5758 Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton ECOLOGY INFORMATION Mailing Address: Department of Ecology Water Quality PO BOX 47600 Olympia, WA 98504-7600 Physical Address: Water Quality 300 Desmond Drive SE Lacey, WA 98503 Contacts Page 4 of 38 Version 10/30/2015 Cleo Neculae Project Manager 3190 - 160th Ave SE Bellevue, Washington 98008-5452 Email: cnec461@ecy.wa.gov Phone: (425) 649-7216 Layne Slone Financial Financial Manager Manager PO Box 47600 Olympia, Washington 98504-7600 Email: Inak461@ecy.wa.gov Phone: (360) 407-6225 Amanda Heye Technical Advisor PO Box 47600 Olympia, Washington 98504-7600 Email: ahey461@ecy.wa.gov Phone: (360) 407-6457 Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton AUTHORIZING SIGNATURES RECIPIENT agrees to furnish the necessary personnel, equipment, materials, services, and otherwise do all things necessary for or incidental to the performance of work as set forth in this Agreement. RECIPIENT acknowledges that they had the opportunity to review the entire Agreement, including all the terms and conditions of this Agreement, Scope of Work, attachments, and incorporated or referenced documents, as well as all applicable laws, statutes, rules, regulations, and guidelines mentioned in this Agreement. Furthermore, the RECIPIENT has read, understood, and accepts all requirements contained within this Agreement. This Agreement contains the entire understanding between the parties, and there are no other understandings or representations other than as set forth, or incorporated by reference, herein. No subsequent modifications or amendments to this agreement will be of any force or effect unless in writing, signed- by ignedby authorized representatives of the RECIPIENT and ECOLOGY and made a part of this agreement. ECOLOGY and RECIPIENT may change their respective staff contacts without the concurrence of either party. This Agreement shall be subject to the written approval of Ecology's authorized representative and shall not be binding until so approved. The signatories to this Agreement represent that they have the authority to execute this Agreement and bind their respective organizations to this Agreement. IN WITNESS WHEREOF: the parties hereto, having read this Agreement in its entirety, including all attachments, do agree in each and every particular and have thus set their hands hereunto. Washington State Department of Ecology LIM Heather R. Bartlett Water Quality Program Manager Template Approved to Form by Attorney General's Office Version 10/30/2015 Date City of Bremerton LIM Chal Martin Public Works Director Page 5 of 38 Date State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Greg Wheeler Page 6 of 38 Mayor Date Chance Berthiaume NPDES Stormwater Permit Coordinator Date Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Project Administration/Management Task Cost: $2,000.00 Task Description: A. The RECIPIENT shall carry out all work necessary to meet ECOLOGY grant or loan administration requirements. Responsibilities include, but are not limited to: maintenance of project records; submittal of requests for reimbursement and corresponding backup documentation; progress reports; and a recipient closeout report (including photos). B. The RECIPIENT shall maintain documentation demonstrating compliance with applicable procurement, contracting, and interlocal agreement requirements; application for, receipt of, and compliance with all required permits, licenses, easements, or property rights necessary for the project; and submittal of required performance items. C. The RECIPIENT shall manage the project. Efforts include, but are not limited to: conducting, coordinating, and scheduling project activities and assuring quality control. Every effort will be made to maintain effective communication with the RECIPIENT's designees; ECOLOGY; all affected local, state, or federal jurisdictions; and any interested individuals or groups. The RECIPIENT shall carry out this project in accordance with any completion dates outlined in this agreement. Task Goal Statement: Properly managed and fully documented project that meets ECOLOGY's grant or loan administrative requirements. Task Expected Outcome: * Timely and complete submittal of requests for reimbursement, quarterly progress reports, and RECIPIENT closeout report. * Properly maintained project documentation Recipient Task Coordinator: Chance Berthiaume Project Administration/Management Deliverables Page 7 of 38 Number Description Due Date 1.1 Progress Reports 12 Recipient Closeout Report 1.3 Project Outcome Summary Report Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Equipment Purchase Task Cost: $0.00 Task Description: The RECIPIENT will submit for approval by ECOLOGY, product details and costs associated with the purchase of a compact high efficiency vacuum sweeper. No reimbursement will be made for equipment purchase or use without prior written approval by ECOLOGY. Following ECOLOGY approval, the RECIPIENT will purchase the approved sweeper, and submit an Equipment Purchase Report form in EAGL. Task Goal Statement: RECIPIENT will select and use an ECOLOGY -accepted compact high efficiency vacuum sweeper. Task Expected Outcome: The project will be accomplished using the appropriate type, make and model of sweeper to remove targeted pollutants. Recipient Task Coordinator: Chance Berthiaume Equipment Purchase Deliverables Page 8 of 38 Number Description Due Date 2.1 Submit make, model, and specifications of sweeper to ECOLOGY. 22 Complete and submit Equipment Purchase Report form in EAGL. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Operations and Maintenance Plan Update Task Cost: $0.00 Task Description: The RECIPIENT will create or revise an operations and maintenance plan that will show how and where the additional quantity of road debris and sediment collected from enhanced sweeping activities will be stored, tested, and disposed. Task Goal Statement: Local sweeping Operations and Maintenance Plans will demonstrate that the recipient can provide sufficient capacity for storage, testing, and disposal of street sweeping debris. Task Expected Outcome: All sweeping debris collected will be appropriately managed and disposed. Recipient Task Coordinator: Chance Berthiaume Operations and Maintenance Plan Update Deliverables Page 9 of 38 Number Description Due Date 3.1 Submit copy of new or revised O&M plan to ECOLOGY for ECOLOGY Engineer review and acceptance. Upload to EAGL and notify ECOLOGY Project Manager when upload is complete. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton SCOPE OF WORK Task Number: Task Title: Sweeper Operation Task Cost: $90,000.00 Task Description: A. RECIPIENT will use the sweeper to remove sediment and debris from public roadways, accessible sidewalks, city -owned parking lots and common areas not regularly maintained currently. RECIPIENT will sweep a minimum of 6 million square feet and collect a minimum of 2,400 lbs. of sediment and debris before the grant's expiration date. B. RECIPIENT will track and report sweeper use for a minimum of three years. RECIPIENT will report the number of miles swept and tons of debris removed quarterly and cumulatively on each progress report/payment request. C. RECIPIENT will track and report expenses related to the operation and maintenance of the sweeper quarterly on each progress report/payment request. Expenses include labor, labor overhead, fuel, and maintenance materials. RECIPIENT will also track expenses per mile swept and report them on each progress report/payment request. D. RECIPIENT will provide a final sweeping tracking report as part of the Project Outcome Summary Report. Task Goal Statement: The sweeper will be used to enhance the RECIPIENT's street sweeping program. Task Expected Outcome: The RECIPIENT will increase the tonnage of sweeper debris removed prior to it entering Sinclair and Dyes Inlets in Puget Sound. Recipient Task Coordinator: Chance Berthiaume Sweeper Operation Deliverables Page 10 of 38 Number Description Due Date 4.1 Report miles swept quarterly and cumulatively. Submit using quarterly progress report/payment requests and Project Outcome Summary Report. 42 Report tons of sediment and debris removed quarterly and cumulatively. Submit using quarterly progress report/payment requests and Project Outcome Summary Report. 4.3 Report quarterly operation and maintenance expenses, including expenses per mile swept. Submit using quarterly progress report/payment requests and Project Outcome Summary Report. 4.4 Final sweeping tracking report. Upload to EAGL and notify ECOLOGY when upload is complete. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton BUDGET Funding Distribution EG190002 NOTE: The above funding distribution number is used to idents this specific agreement and budget on payment remittances and may be referenced on other communications from ECOLOGY. Your agreement may have multiple funding distribution numbers to idents each budget. Funding Title: Funding Effective Date: Funding Source: Title: Type: Funding Source % Description: SFAP 07/01/2018 SFAP - SFY16 State 100% Funding Type: Grant Funding Expiration Date: 06/30/2022 Environmental Legacy Stewardship Account (ELSA) - State Approved Indirect Costs Rate: Approved State Indirect Rate: 0% Recipient Match %: 25% InKind Interlocal Allowed: No InKind Other Allowed: No Is this Funding Distribution used to match a federal grant? No SFAP Task Total Project Administration/Management $ 2,000.00 Equipment Purchase $ 0.00 Operations and Maintenance Plan Update $ 0.00 Sweeper Operation $ 90,000.00 Total: $ 92,000.00 Version 10/30/2015 Page 11 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Funding Distribution Summary Recipient / Ecology Share Page 12 of 38 Funding Distribution Name Recipient Match % Recipient Share Ecology Share Total SFAP 25.00 % $ 23,000.00 $ 69,000.00 $ 92,000.00 Total $ 23,000.00 S 69,000.00 S 92,000.00 AGREEMENT SPECIFIC TERMS AND CONDITIONS N/A SPECIAL TERMS AND CONDITIONS SECTION 1: DEFINITIONS Unless otherwise provided, the following terms will have the respective meanings for all purposes of this agreement: "Administration Charge" means a charge established in accordance with Chapter 90.50A RCW and Chapter 173-98 WAC, to be used to pay Ecology's cost to administer the State Revolving Fund by placing a percentage of the interest earned in an Administrative Charge Account. "Administrative Requirements" means the effective edition of ECOLOGY's Administrative Requirements for Recipients of Ecology Grants and Loans at the signing of this agreement. "Annual Debt Service" for any calendar year means for any applicable bonds or loans including the loan, all interest plus all principal due on such bonds or loans in such year. "Average Annual Debt Service" means, at the time of calculation, the sum of the Annual Debt Service for the remaining years of the loan to the last scheduled maturity of the loan divided by the number of those years. "Centennial Clean Water Program" means the state program funded from various state sources. "Contract Documents" means the contract between the RECIPIENT and the construction contractor for construction of the project. "Cost Effective Analysis" means a comparison of the relative cost -efficiencies of two or more potential ways of solving a water quality problem as described in Chapter 173-98-730 WAC. "Defease" or "Defeasance" means the setting aside in escrow or other special fund or account of sufficient investments and money dedicated to pay all principal of and interest on all or a portion of an obligation as it comes due. "Effective Date" means the earliest date on which eligible costs may be incurred. "Effective Interest Rate" means the total interest rate established by Ecology that includes the Administrative Charge. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton "Estimated Loan Amount" means the initial amount of funds loaned to the RECIPIENT. "Estimated Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Estimated Loan Amount. "Equivalency" means projects designated by ECOLOGY to meet additional federal requirements. "Final Accrued Interest" means the interest accrued beginning with the first disbursement of funds to the RECIPIENT through such time as the loan is officially closed out and a final loan repayment schedule is issued. "Final Loan Amount" means all principal of and interest on the loan from the Project Start Date through the Project Completion Date. "Final Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Final Loan Amount. "Forgivable Principal" means the portion of a loan that is not required to be paid back by the borrower. "General Obligation Debt" means an obligation of the RECIPIENT secured by annual ad valorem taxes levied by the RECIPIENT and by the full faith, credit, and resources of the RECIPIENT. "General Obligation Payable from Special Assessments Debt" means an obligation of the RECIPIENT secured by a valid general obligation of the Recipient payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. "Gross Revenue" means all of the earnings and revenues received by the RECIPIENT from the maintenance and operation of the Utility and all earnings from the investment of money on deposit in the Loan Fund, except (i) Utility Local Improvement Districts (ULID) Assessments, (ii) government grants, (iii) RECIPIENT taxes, (iv) principal proceeds of bonds and other obligations, or (v) earnings or proceeds (A) from any investments in a trust, Defeasance, or escrow fund created to Defease or refund Utility obligations or (B) in an obligation redemption fund or account other than the Loan Fund until commingled with other earnings and revenues of the Utility or (C) held in a special account for the purpose of paying a rebate to the United States Government under the Internal Revenue Code. "Guidelines" means the ECOLOGY's Funding Guidelines that that correlate to the State Fiscal Year in which the project is funded. "Initiation of Operation Date" means the actual date the Water Pollution Control Facility financed with proceeds of the loan begins to operate for its intended purpose. "Loan" means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund (Centennial) Loan made pursuant to this loan agreement. "Loan Amount" means either an Estimated Loan Amount or a Final Loan Amount, as applicable. Version 10/30/2015 Page 13 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton "Loan Fund" means the special fund of that name created by ordinance or resolution of the RECIPIENT for the repayment of the principal of and interest on the loan. "Loan Security" means the mechanism by which the RECIPIENT pledges to repay the loan. "Loan Term" means the repayment period of the loan. "Maintenance and Operation Expense" means all reasonable expenses incurred by the RECIPIENT in causing the Utility to be operated and maintained in good repair, working order, and condition including payments to other parties, but will not include any depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes. "Net Revenue" means the Gross Revenue less the Maintenance and Operation Expense. "Original Engineer's Estimate" means the engineer's estimate of construction costs included with bid documents. "Principal and Interest Account" means, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the loan fund to be first used to repay the principal of and interest on the loan. "Project" means the project described in this agreement. "Project Completion Date" means the date specified in the agreement on which the Scope of Work will be fully completed. "Project Schedule" means that schedule for the project specified in the agreement. "Reserve Account" means, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the loan fund to secure the payment of the principal of and interest on the loan. "Revenue -Secured Debt" means an obligation of the RECIPIENT secured by a pledge of the revenue of a utility and one not a general obligation of the RECIPIENT. "Risk -Based Determination" means an approach to sub -recipient monitoring and oversight based on risk factors associated to a RECIPIENT or project. "Scope of Work" means the tasks and activities constituting the project. "Section 319" means the section of the Clean Water Act that provides funding to address nonpoint sources of water pollution. "Senior Lien Obligations" means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of execution of this loan agreement (or subsequently issued on a parity therewith, including refunding obligations) or issued after the date of execution of this loan agreement having a claim or lien on the Gross Revenue of the Utility prior and superior to the claim or lien of the loan, subject only to Maintenance and Operation Expense. "State Water Pollution Control Revolving Fund (Revolving Fund)" means the water pollution control revolving fund established by Chapter 90.50A.020 RCW. Version 10/30/2015 Page 14 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton "Termination Date" means the effective date of ECOLOGY's termination of the agreement. "Termination Payment Date" means the date on which the RECIPIENT is required to repay to ECOLOGY any outstanding balance of the loan and all accrued interest. "Total Eligible Project Cost" means the sum of all costs associated with a water quality project that have been determined to be eligible for ECOLOGY grant or loan funding. "Total Project Cost" means the sum of all costs associated with a water quality project, including costs that are not eligible for ECOLOGY grant or loan funding. "ULID" means any utility local improvement district of the RECIPIENT created for the acquisition or construction of additions to and extensions and betterments of the Utility. "ULID Assessments" means all assessments levied and collected in any ULID. Such assessments are pledged to be paid into the Loan Fund (less any prepaid assessments permitted by law to be paid into a construction fund or account). ULID Assessments will include principal installments and any interest or penalties which may be due. "Utility" means the sewer system, stormwater system, or the combined water and sewer system of the RECIPIENT, the Net Revenue of which is pledged to pay and secure the loan. SECTION 2: THE FOLLOWING CONDITIONS APPLY TO ALL RECIPIENTS OF WATER QUALITY COMBINED FINANCIAL ASSISTANCE FUNDING. The Water Quality Financial Assistance Funding Guidelines are included in this agreement by reference and are available on ECOLOGY's Water Quality Program website. A. Architectural and Engineering Services: The RECIPIENT certifies by signing this agreement that the requirements of Chapter 39.80 RCW, "Contracts for Architectural and Engineering Services," have been, or shall be, met in procuring qualified architectural/engineenng services. The RECIPIENT shall identify and separate eligible and ineligible costs in the final architectural/engineering services contract and submit a copy of the contract to ECOLOGY. B. Best Management Practices (BMP) Implementation: If the RECIPIENT installs BMPs that are not approved by ECOLOGY prior to installation, the RECIPIENT assumes the risk that part or all of the reimbursement for that activity may be delayed or ineligible. For more details regarding BMP Implementation, please reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality Program funding website. C. Cultural Resources: The RECIPIENT shall: 1) The RECIPIENT shall comply with all applicable federal, state and local environmental laws, statutes, regulations, executive orders, and permits. 2) The RECIPIENT shall comply with Ecology's Archaeological Resource and Historic Property review process. The RECIPIENT agrees that in no case shall construction activities, ground disturbance, or excavation of any kind, begin until provisions of this process are complied with. The RECIPIENT is responsible for developing a complete Inadvertent Discovery Plan (IDP). The IDP must be immediately available upon request by any party. The IDP must be readily available and be implemented to address any discovery. The RECIPIENT shall implement the procedures in Version 10/30/2015 Page 15 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton the IDP, and immediately notify ECOLOGY, the Department of Archeology and Historic Preservation (DAHP), and tribal representatives, if human remains, cultural, or archeological resources are discovered in the course of ground disturbing activities. For more details regarding requirements under this provision, please reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality Program funding website. D. Electronic Fund Transfers: The RECIPIENT must register as a statewide vendor in order to receive payment reimbursement. Washington State's Department of Enterprise Services (DES) issues all payments. DES maintains a central vendor file for Washington State agency use to process vendor payments. The RECIPIENT can complete the registration process online at: http://des.wa.gov/services/ContractingPurchasing/Business/VendorPay/Pages/default.aspx. This registration process allows the RECIPIENT to sign up for direct deposit payments, also known as electronic fund transfers (EFT). If the RECIPIENT has questions about the vendor registration process or setting up direct deposit payments contact DES Payee Help Desk at (360) 664-7779 or payeehelpdesk(4�des.wa.gov. E. Equipment Purchase: Equipment not included in the scope of work or the Ecology approved construction plans and specifications, must be pre -approved by ECOLOGY's project manager before purchase. F. Funding Recognition: The RECIPIENT must inform the public about ECOLOGY or any EPA (see Section 3.13 for Section 319 funded or Section 5.E for SRF funded projects) funding participation in this project through the use of project signs, acknowledgement in published materials, reports, the news media, websites, or other public announcements. Projects addressing site-specific locations must utilize appropriately sized and weather -resistant signs. Sign logos are available from ECOLOGY's Financial Manager upon request. G. Growth Management Planning: The RECIPIENT certifies by signing this agreement that it is in compliance with the requirements of Chapter 36.70A RCW, "Growth Management Planning by Selected Counties and Cities." If the status of compliance changes, either through RECIPIENT or legislative action, the RECIPIENT shall notify ECOLOGY in writing of this change within 30 days. H. Interlocal: The RECIPIENT certifies by signing this agreement that all negotiated interlocal agreements necessary for the project are, or shall be, consistent with the terms of this agreement and Chapter 39.34 RCW, "Interlocal Cooperation Act." The RECIPIENT shall submit a copy of each interlocal agreement necessary for the project to ECOLOGY upon request. I. Lobbying and Litigation: Costs incurred for the purposes of lobbying or litigation are not eligible for funding under this agreement. J. Post Project Assessment Survey: The RECIPIENT agrees to participate in a brief survey regarding the key project results or water quality project outcomes and the status of long-term environmental results or goals from the project approximately three years after project completion. A representative from ECOLOGY's Water Quality Program may contact the RECIPIENT to request this data. ECOLOGY may also conduct site interviews and inspections, and may otherwise evaluate the project, as part of this assessment. K. Project Status Evaluation: ECOLOGY may evaluate the status of this project 18 months from the effective date of this agreement. ECOLOGY's Project Manager and Financial Manager will meet with the RECIPIENT to review spending trends, completion of outcome measures, and overall project administration and performance. If the RECIPIENT fails to make satisfactory progress toward achieving project outcomes, ECOLOGY may change the scope of work, reduce grant funds, or increase oversight measures. Version 10/30/2015 Page 16 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton L. Technical Assistance: Technical assistance for agriculture activities provided under the terms of this agreement shall be consistent with the current U.S. Natural Resource Conservation Service ("NRCS") Field Office Technical Guide for Washington State. However, ECOLOGY may accept as eligible technical assistance, proposed practices, or project designs that do not meet these standards if approved in writing by the NRCS and ECOLOGY. SECTION 3: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 AND ONLY CENTENNIAL CLEAN WATER FUNDED PROJECTS BEING USED TO MATCH SECTION 319 FUNDS. The RECIPIENT must submit the following documents to ECOLOGY before this agreement is signed by ECOLOGY: 1. Federal Funding Accountability and Transparency Act (FFATA) Form, available on the Water Quality Program website. 2. Clean Water Act Section 319 Initial Data Reporting Sheet or the "Section 319 Initial Data Reporting" form in EAGL. A. Data Reporting: The RECIPIENT must complete the "Section 319 Initial Data Reporting" form in EAGL before this agreement can be signed by Ecology. This form is used to gather general information about the project. B. Funding Recognition and Outreach: In addition to Section 2.F of these Terms and Conditions, the RECIPIENT shall provide signage that informs the public that the project is funded by EPA. The signage shall contain the EPA logo and follow usage requirements available at http://www2.epa.gov/stylebook/using-epa-seal-and-logo. To obtain the appropriate EPA logo or seal graphic file, the RECIPIENT may sent a request to their Ecology's Financial Manager. To increase public awareness of projects serving communities where English is not the predominant language, RECIPIENTS are encouraged to provide their outreach strategies communication in non-English languages. Translation costs for this purpose are allowable, provided the costs are reasonable. The RECIPIENT shall use the following paragraph in all reports, documents, and signage developed under this agreement: "This project has been funded wholly or in part by the United States Environmental Protection Agency under an assistance agreement to the Washington State Department of Ecology. The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the mention of trade names or commercial products constitute endorsement or recommendation for use." C. Load Reduction Reporting: The RECIPIENT shall complete the "Section 319 Annual Load Reduction Reporting" form in EAGL by January 15 of each year and at project close-out. ECOLOGY may hold reimbursements until the RECIPIENT has completed the form. This form is used to gather information on pollutant load reductions for each best management practice (BMP) installed as a part of this project. D. Time Extension: The RECIPIENT may request a one-time extension for up to 12 months. However, the time extension cannot exceed the time limitation established in EPA's assistance agreement. In the event a time extension is requested and approved by ECOLOGY, the RECIPIENT must complete all eligible work performed under this agreement by the expiration date. Version 10/30/2015 Page 17 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton SECTION 4: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 AND STATE REVOLVING FUND (SRF) LOAN FUNDED PROJECTS ONLY. A. Accounting Standards: The RECIPIENT shall maintain accurate records and accounts for the project (PROJECT Records) in accordance with Generally Accepted Accounting Principles (GAAP) as issued by the Governmental Accounting Standards Board (GASB), including standards related to the reporting of infrastructure assets or in accordance with the standards in Chapter 43.09.200 RCW "Local Government Accounting — Uniform System of Accounting". B. Audit Requirements: In accordance with 2 CFR 200.501(a), the RECIPIENT agrees to obtain a single audit from an independent auditor, if their organization expends $750,000 or more in total Federal funds in their fiscal year. The RECIPIENT must submit the form SF -SAC and a Single Audit Report Package within 9 months of the end of the fiscal year or 30 days after receiving the report from an independent auditor. The SF -SAC and a Single Audit Report Package MUST be submitted using the Federal Audit Clearinghouse's Internet Data Entry System available at: https://harvester.census.gov/fac/collect/ddeindex.html. For complete information on how to accomplish the single audit submissions, go to the Federal Audit Clearinghouse Web site: http://harvester.census.gov/fac/. C. Archaeological Resources and Historic Properties (Section 106): See Section 2.0 of the terms and conditions of this agreement, the RECIPIENT shall comply with the additional requirements under section 106 of the National Historic Preservation Act (NHPA, 36 CFR 800). D. Consultant Cap: The RECIPIENT shall ensure that loan or grant funds provided under this agreement to reimburse for costs incurred by individual consultants (excluding overhead) is limited to the maximum daily rate for Level IV of the Executive Schedule (formerly GS -18), to be adjusted annually. The Executive Schedule can be found at: https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/. This limit applies to consultation services of designated individuals with specialized skills who are paid at a daily or hourly rate. This rate does not include transportation and subsistence costs for travel performed. Contracts for services awarded using the procurement requirements in Subpart D of 2 CFR 200 are not affected by this limitation unless the terms of the contract provide the RECIPIENT with responsibility for the selection, direction, and control of the individuals who shall be providing services under the contract at an hourly or daily rate of compensation. See 2 CFR 1500.9 for additional information. E. Data Universal Numbering System (DUNS) and Central Contractor Registration (CCR) Requirements: RECIPIENTS shall have a DUNS number. Unless exempted from this requirement under 2 CFR 25.110, the RECIPIENT must ensure that the organization's information in the System for Award Management (SAM), https://www.sam.gov, is kept current through project closeout. This requires that the RECIPIENT reviews and updates the information at least annually after the initial registration, and more frequently if information changes. F. Disadvantaged Business Enterprise (DBE): General Compliance, 40 CFR, Part 33. The RECIPIENT agrees to comply with the requirements of the Environmental Protection Agency's Program for Utilization of Small, Minority, and Women's Business Enterprises (MBE/WBE) 40CFR, Part 33 in procurement under this agreement. Six Good Faith Efforts, 40 CFR, Part 33, Subpart C. The RECIPIENT agrees to make the following good faith efforts whenever procuring construction, equipment, services and supplies under this agreement. Records documenting compliance with the following six good faith efforts shall be retained: 1) Ensure Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government Version 10/30/2015 Page 18 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton RECIPIENTS, this shall include placing Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. 2) Make information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time frames for contracts and establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a minimum of thirty (30) calendar days before the bid or proposal closing date. 3) Consider in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, and State and Local Government RECIPIENTS, this shall include dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum participation by Disadvantaged Business Enterprises in the competitive process. 4) Encourage contracting with a consortium of Disadvantaged Business Enterprises when a contract is too large for one of these firms to handle individually. 5) Use services and assistance of the Small Business Administration and the Minority Business Development Agency of the Department of Commerce. 6) If the prime contractor awards subcontracts, require the prime contractor to take the five good faith efforts steps in paragraphs 1 through 5 above. The RECIPIENT agrees to submit ECOLOGY's Contractor Participation Report Form D with each payment request. Contract Administration Provisions, 40 CFR, Section 33.302. The RECIPIENT agrees to comply with the contract administration provisions of 40 CFR, Section 33.302. Non-discrimination Provision. The RECIPIENT shall not discriminate on the basis of race, color, national origin or sex in the performance of this agreement. The RECIPIENT shall carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the RECIPIENT to carry out these requirements is a material breach of this agreement which may result in the termination of this contract or other legally available remedies. This does not preclude the RECIPIENT from enacting broader nondiscrimination protections. The RECIPIENT shall comply with all federal and state nondiscrimination laws, including, but not limited to Title VI and VII of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and Chapter 49.60 RCW, Washington's Law Against Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA). In the event of the RECIPIENT's noncompliance or refusal to comply with any applicable nondiscrimination law, regulation, or policy, this agreement may be rescinded, canceled, or terminated in whole or in part, and the RECIPIENT may be declared ineligible for further funding from ECOLOGY. The RECIPIENT shall, however, be given a reasonable time in which to cure this noncompliance. The RECIPIENT shall include the following terms and conditions in contracts with all contractors, subcontractors, Version 10/30/2015 Page 19 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton engineers, vendors, and any other entity for work or services pertaining to this agreement. "The Contractor will not discriminate on the basis of race, color, national origin or sex in the performance of this Contract. The Contractor will carry out applicable requirements of 40 CFR Part 33 in the award and administration of contracts awarded under Environmental Protection Agency financial agreements. Failure by the Contractor to carry out these requirements is a material breach of this Contract which may result in termination of this Contract or other legally available remedies." Bidder List, 40 CFR, Section 33.501(b) and (c). The RECIPIENT agrees to create and maintain a bidders list. The bidders list shall include the following information for all firms that bid or quote on prime contracts, or bid or quote subcontracts, including both MBE/WBEs and non-MBE/WBEs. 1. Entity's name with point of contact 2. Entity's mailing address, telephone number, and e-mail address 3. The procurement on which the entity bid or quoted, and when 4. Entity's status as an MBE/WBE or non-MBE/WBE G. Electronic and information Technology (EIT) Accessibility: RECIPIENTS shall ensure that loan funds provided under this agreement for costs in the development or purchase of EIT systems or products provide individuals with disabilities reasonable accommodations and an equal and effective opportunity to benefit from or participate in a program, including those offered through electronic and information technology as per Section 504 of the Rehabilitation Act, codified in 40 CFR Part 7. Systems or products funded under this agreement must be designed to meet the diverse needs of users without barriers or diminished function or quality. Systems shall include usability features or functions that accommodate the needs of persons with disabilities, including those who use assistive technology. H. Hotel -Motel Fire Safety Act: The RECIPIENT shall ensure that all space for conferences, meetings, conventions or training seminars funded in whole or in part with federal funds complies with the protection and control guidelines of the Hotel and Motel Fire Safety Act (15 USC 2225a, PL 101-391, as amended). Recipients may search the Hotel -Motel National Master List at http://www.usfa.dhs.gov/applications/hoteU to see if a property is in compliance, or to find other information about the Act. Pursuant to 15 USC 2225a. I. Trafficking In Persons: The RECIPIENT and RECIPIENT employees that are private entities shall not engage in forms of trafficking in persons during the period of time this agreement is effective. This includes, but is not limited to the procurement of a commercial sex act or forced labor. The RECIPIENT shall notify ECOLOGY immediately of any information received from any source alleging a violation under this provision. SECTION 5: THE FOLLOWING CONDITIONS APPLY TO STATE REVOLVING FUND (SRF) LOAN FUNDED PROJECTS ONLY. The RECIPIENT must submit the following documents/forms to ECOLOGY before this agreement is signed by ECOLOGY: 1. Opinion of RECIPIENT's Legal Council 2. Authorizing Ordinance or Resolution 3. Federal Funding Accountability and Transparency Act (FFATA) Form 4. CWSRF Federal Reporting Information form available in EAGL Version 10/30/2015 Page 20 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton 5. Fiscal Sustainability Plan Certification (only required if the project includes construction of a wastewater or stormwater facility construction) A. Alteration and Eligibility of Project: During the term of this agreement, the RECIPIENT (1) shall not materially alter the design or structural character of the project without the prior written approval of ECOLOGY and (2) shall take no action which would adversely affect the eligibility of the project as defined by applicable funding program rules and state statutes, or which would cause a violation of any covenant, condition, or provision herein. B. American Iron and Steel (Buy American): This loan provision applies to projects for the construction, alteration, maintenance, or repair of a "treatment works" as defined in the Federal Water Pollution Control Act (33 USC 1381 et seq.) The RECIPIENT shall ensure that all iron and steel products used in the project are produced in the United States. Iron and Steel products means the following products made primarily of iron or steel: lined or unlined pipes and fittings, manhole covers and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves, structural steel, reinforced precast concrete, and construction materials. The RECIPIENT may request waiver from this requirement from the Administrator of the Environmental Protection Agency. The RECIPIENT must coordinate all waiver requests through ECOLOGY. This provision does not apply if the engineering plans and specifications for the project were approved by ECOLOGY prior to January 17, 2014. ECOLOGY reserves the right to request documentation of RECIPIENT'S compliance with this provision. C. Authority of RECIPIENT: This agreement is authorized by the Constitution and laws of the state of Washington, including the RECIPIENT's authority, and by the RECIPIENT pursuant to the authorizing ordinance or resolution. The RECIPIENT shall submit a copy of the authorizing ordinance or resolution to the ECOLOGY Financial Manager before this agreement shall be signed by ECOLOGY. D. Fiscal Sustainability Plan Certification: The RECIPIENT shall submit a completed Fiscal Sustainability Plan Certification before this agreement is signed by ECOLOGY. The Fiscal Sustainability Plan Certification is available from the ECOLOGY Financial Manager or on the Water Quality Program website. E. Funding Recognition and Outreach: In addition to Section 2.F of these Terms and Conditions, the RECIPIENT agrees to comply with the EPA SRF Signage Guidance in order to enhance public awareness of EPA assistance agreements nationwide. The signage guidance can be found at: http://www. ecy.wa.gov/programs/wq/funding/FundPrgms/CW SRF/SignageGuidanceJune2015.pdf. F. Free Service: The RECIPIENT shall not furnish utility service to any customer free of charge if providing that free service affects the RECIPIENT's ability to meet the obligations of this agreement. G. Insurance: The RECIPIENT shall at all times carry fire and extended coverage, public liability, and property damage, and such other forms of insurance with responsible insurers and with policies payable to the RECIPIENT on such of the buildings, equipment, works, plants, facilities, and properties of the Utility as are ordinarily carried by municipal or privately -owned utilities engaged in the operation of like systems, and against such claims for damages as are ordinarily carried by municipal or privately -owned utilities engaged in the operation of like systems, or it shall self -insure or participate in an insurance pool or pools with reserves adequate, in the reasonable judgment of the RECIPIENT, to protect it against loss. H. Loan Interest Rate and Terms: This loan agreement shall remain in effect until the date of final repayment of the loan, unless terminated earlier according to the provisions herein. Version 10/30/2015 Page 21 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton When the Project Completion Date has occurred, ECOLOGY and the RECIPIENT shall execute an amendment to this loan agreement which details the final loan amount (Final Loan Amount), and ECOLOGY shall prepare a final loan repayment schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and all accrued interest to the computation date. The Estimated Loan Amount and the Final Loan Amount (in either case, as applicable, a "Loan Amount") shall bear interest based on the interest rate identified in this agreement as the "Effective Interest Rate," per annum, calculated on the basis of a 365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly based on the date that each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal installments semiannually over the term of this loan "Loan Term" as outlined in this agreement. I. Loan Repayment: Sources of Loan Repayment 1. Nature of RECIPIENT's Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified below and to perform and observe all of the other agreements and obligations on its part contained herein shall be absolute and unconditional, and shall not be subject to diminution by setoff, counterclaim, or abatement of any kind. To secure the repayment of the loan from ECOLOGY, the RECIPIENT agrees to comply with all of the covenants, agreements, and attachments contained herein. 2. For General Obligation. This loan is a General Obligation Debt of the RECIPIENT. 3. For General Obligation Payable from Special Assessments. This loan is a General Obligation Debt of the RECIPIENT payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. 4. For Revenue -Secured: Lien Position. This loan is a Revenue -Secured Debt of the RECIPIENT's Utility. This loan shall constitute a lien and charge upon the Net Revenue junior and subordinate to the lien and charge upon such Net Revenue of any Senior Lien Obligations. In addition, if this loan is also secured by Utility Local Improvement Districts (ULID) Assessments, this loan shall constitute a lien upon ULID Assessments in the ULID prior and superior to any other charges whatsoever. 5. Other Sources of Repayment. The RECIPIENT may repay any portion of the loan from any funds legally available to it. 6. Defeasance of the Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT shall not be entitled to, and shall not affect, an economic Defeasance of the loan. The RECIPIENT shall not advance refund the loan. If the RECIPIENT defeases or advance refunds the loan, it shall be required to use the proceeds thereof immediately upon their receipt, together with other available RECIPIENT funds, to repay both of the following: (i) The Loan Amount with interest (ii) Any other obligations of the RECIPIENT to ECOLOGY under this agreement, unless in its sole discretion ECOLOGY finds that repayment from those additional sources would not be in the public interest. Version 10/30/2015 Page 22 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Failure to repay the Loan Amount plus interest within the time specified in ECOLOGY's notice to make such repayment shall incur Late Charges and shall be treated as a Loan Default. 7. Refinancing or Early Repayment of the Project. So long as ECOLOGY shall hold this loan, the RECIPIENT shall give ECOLOGY thirty days written notice if the RECIPIENT intends to refinance or make early repayment of the loan. Method and Conditions on Repayments 1. Semiannual Payments. Notwithstanding any other provision of this agreement, the first semiannual payment of principal and interest on this loan shall be due and payable no later than one year after the project completion date or initiation of operation date, whichever comes first. Thereafter, equal payments shall be due every six months. If the due date for any semiannual payment falls on a Saturday, Sunday, or designated holiday for Washington State agencies, the payment shall be due on the next business day for Washington State agencies. Payments shall be mailed to: Department of Ecology Cashiering Unit P.O. Box 47611 Olympia WA 98504-7611 In lieu of mailing payments, electronic fund transfers can be arranged by working with ECOLOGY's Financial Manager. No change to the amount of the semiannual principal and interest payments shall be made without a formal amendment to this agreement. The RECIPIENT shall continue to make semiannual payments based on this agreement until the amendment is effective, at which time the RECIPIENT's payments shall be made pursuant to the amended agreement. 2. Late Charges. If any amount of the Final Loan Amount or any other amount owed to ECOLOGY pursuant to this agreement remains unpaid after it becomes due and payable, ECOLOGY may assess a late charge. The late charge shall be one percent per month on the past due amount starting on the date the debt becomes past due and until it is paid in full. 3. Repayment Limitations. Repayment of the loan is subject to the following additional limitations, among others: those on defeasance, refinancing and advance refunding, termination, and default and recovery of payments. 4. Prepayment of Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT may prepay the entire unpaid principal balance of and accrued interest on the loan or any portion of the remaining unpaid principal balance of the Loan Amount. Any prepayments on the loan shall be applied first to any accrued interest due and then to the outstanding principal balance of the Loan Amount. If the RECIPIENT elects to prepay the entire remaining unpaid balance and accrued interest, the RECIPIENT shall first contact ECOLOGY's Revenue/Receivable Manager of the Fiscal Office. Version 10/30/2015 Page 23 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton J. Loan Security Due Regard: For loans secured with a Revenue Obligation: The RECIPIENT shall exercise due regard for Maintenance and Operation Expense and the debt service requirements of the Senior Lien Obligations and any other outstanding obligations pledging the Gross Revenue of the Utility, and it has not obligated itself to set aside and pay into the loan Fund a greater amount of the Gross Revenue of the Utility than, in its judgment, shall be available over and above such Maintenance and Operation Expense and those debt service requirements. Where collecting adequate gross utility revenue requires connecting additional users, the RECIPIENT shall require the sewer system connections necessary to meet debt obligations and expected operation and maintenance expenses. Levy and Collection of Taxes (if used to secure the repayment of the loan): For so long as the loan is outstanding, the RECIPIENT irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of its electors on all of the taxable property within the boundaries of the RECIPIENT in an amount sufficient, together with other money legally available and to be used therefore, to pay when due the principal of and interest on the loan, and the full faith, credit and resources of the RECIPIENT are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest. Not an Excess Indebtedness: For loans secured with a general obligation pledge or a general obligation pledge on special assessments: The RECIPIENT agrees that this agreement and the loan to be made do not create an indebtedness of the RECIPIENT in excess of any constitutional or statutory limitations. Pledge of Net Revenue and ULID Assessments in the ULID (if used to secure the repayment of this loan): For so long as the loan is outstanding, the RECIPIENT irrevocably pledges the Net Revenue of the Utility, including applicable ULID Assessments in the ULID, to pay when due the principal of and interest on the loan. Reserve Requirement: For loans that are Revenue -Secured Debt with terms greater than five years, the RECIPIENT must accumulate a reserve for the loan equivalent to at least the Average Annual Debt Service on the loan during the first five years of the repayment period of the loan. This amount shall be deposited in a Reserve Account in the Loan Fund in approximately equal annual payments commencing within one year after the initiation of operation or the project completion date, whichever comes first. "Reserve Account" means, for a loan that constitutes Revenue -Secured Debt, an account of that name created in the Loan Fund to secure the payment of the principal and interest on the loan. The amount on deposit in the Reserve Account may be applied by the RECIPIENT (1) to make, in part or in full, the final repayment to ECOLOGY of the loan amount or, (2) if not so applied, for any other lawful purpose of the RECIPIENT once the Loan Amount, plus interest and any other amounts owing to ECOLOGY, have been paid in full. Utility Local Improvement District (ULID) Assessment Collection (if used to secure the repayment of the loan): All ULID Assessments in the ULID shall be paid into the loan Fund and used to pay the principal of and interest on the loan. The ULID Assessments in the ULID may be deposited into the Reserve Account to satisfy a Reserve Requirement if a Reserve Requirement is applicable. K. Maintenance and Operation of a Funded Utility: The RECIPIENT shall at all times maintain and keep a funded Utility in good repair, working order and condition and also shall at all times operate the Utility and the business in an efficient manner and at a reasonable cost. L. Opinion of RECIPIENT's Legal Counsel: The RECIPIENT must submit an "Opinion of Legal Counsel to the Version 10/30/2015 Page 24 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton RECIPIENT" to ECOLOGY before this agreement shall be signed. ECOLOGY will provide the form. M. Prevailing Wage (Davis -Bacon Act): The RECIPIENT agrees, by signing this agreement, to comply with the Davis -Bacon Act prevailing wage requirements. This applies to the construction, alteration, and repair of treatment works carried out in whole or in part with assistance made available by the State Revolving Fund as authorized by Section 513, title VI of the Federal Water Pollution Control Act (33 U.S.C. 1372). Laborers and mechanics employed by contractors and subcontractors shall be paid wages not less often than once a week and at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor. The RECIPIENT shall obtain the wage determination for the area in which the project is located prior to issuing requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation). These wage determinations shall be incorporated into solicitations and any subsequent contracts. The RECIPIENT shall ensure that the required EPA contract language regarding Davis -Bacon Wages is in all contracts and sub contracts in excess of $2,000. The RECIPIENT shall maintain records sufficient to document compliance with the Davis -Bacon Act, and make such records available for review upon request. The RECIPIENT also agrees, by signing this agreement, to comply with State Prevailing Wages on Public Works, Chapter 39.12 RCW, as applicable. Compliance may include the determination whether the project involves "public work" and inclusion of the applicable prevailing wage rates in the bid specifications and contracts. The RECIPIENT agrees to maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and make such records available for review upon request. N. Litigation; Authority: No litigation is now pending, or to the RECIPIENT's knowledge, threatened, seeking to restrain, or enjoin: (i) the execution of this agreement; or (ii) the fixing or collection of the revenues, rates, and charges or the formation of the ULID and the levy and collection of ULID Assessments therein pledged to pay the principal of and interest on the loan (for revenue secured lien obligations); or (iii) the levy and collection of the taxes pledged to pay the principal of and interest on the loan (for general obligation -secured loans and general obligation payable from special -assessment -secured loans); or (iv) in any manner questioning the proceedings and authority under which the agreement, the loan, or the project are authorized. Neither the corporate existence or boundaries of the RECIPIENT nor the title of its present officers to their respective offices is being contested. No authority or proceeding for the execution of this agreement has been repealed, revoked, or rescinded. O. Representations and Warranties: The RECIPIENT represents and warrants to ECOLOGY as follows: Application: Material Information. All information and materials submitted by the RECIPIENT to ECOLOGY in connection with its loan application were, when made, and are, as of the date the RECIPIENT signs this agreement, true and correct. There is no material adverse information relating to the RECIPIENT, the project, the loan, or this agreement known to the RECIPIENT which has not been disclosed in writing to ECOLOGY. Existence; Authority. It is a duly formed and legally existing municipal corporation or political subdivision of the Version 10/30/2015 Page 25 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton state of Washington or a federally recognized Indian Tribe. It has full corporate power and authority to execute, deliver, and perform all of its obligations under this agreement and to undertake the project identified herein. Certification. Each payment request shall constitute a certification by the RECIPIENT to the effect that all representations and warranties made in this loan agreement remain true as of the date of the request and that no adverse developments, affecting the financial condition of the RECIPIENT or its ability to complete the project or to repay the principal of or interest on the loan, have occurred since the date of this loan agreement. Any changes in the RECIPIENT's financial condition shall be disclosed in writing to ECOLOGY by the RECIPIENT in its request for payment. P. Sale or Disposition of Utility: The RECIPIENT shall not sell, transfer, or otherwise dispose of any of the works, plant, properties, facilities, or other part of the Utility or any real or personal property comprising a part of the Utility unless: 1. The facilities or property transferred are not material to the operation of the Utility, or have become unserviceable, inadequate, obsolete, or unfit to be used in the operation of the Utility or are no longer necessary, material, or useful to the operation of the Utility; or 2. The aggregate depreciated cost value of the facilities or property being transferred in any fiscal year comprises no more than three percent of the total assets of the Utility; or 3. The RECIPIENT receives from the transferee an amount equal to an amount which will be in the same proportion to the net amount of Senior Lien Obligations and this LOAN then outstanding (defined as the total amount outstanding less the amount of cash and investments in the bond and loan funds securing such debt) as the Gross Revenue of the Utility from the portion of the Utility sold or disposed of for the preceding year bears to the total Gross Revenue for that period. 4. Expressed written agreement by the DEPARTMENT. The proceeds of any transfer under this paragraph must be used (1) to redeem promptly, or irrevocably set aside for the redemption of, Senior Lien Obligations and to redeem promptly the loan, and (2) to provide for part of the cost of additions to and betterments and extensions of the Utility. Q. Sewer -Use Ordinance or Resolution: If not already in existence, the RECIPIENT shall adopt and shall enforce a sewer -use ordinance or resolution. Such ordinance or resolution shall be submitted to ECOLOGY upon request. The sewer use ordinance must include provisions to: 1) Prohibit the introduction of toxic or hazardous wastes into the RECIPIENT's sewer system. 2) Prohibit inflow of stormwater. 3) Require that new sewers and connections be properly designed and constructed. R. Termination and Default: Termination and Default Events For Insufficient ECOLOGY or RECIPIENT Funds. ECOLOGY may terminate this loan agreement for insufficient ECOLOGY or RECIPIENT funds. Version 10/30/2015 Page 26 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton 2. For Failure to Commence Work. ECOLOGY may terminate this loan agreement for failure of the RECIPIENT to commence project work. 3. Past Due Payments. The RECIPIENT shall be in default of its obligations under this loan agreement when any loan repayment becomes 60 days past due. 4. Other Cause. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance in full by the RECIPIENT of all of its obligations under this loan agreement. The RECIPIENT shall be in default of its obligations under this loan agreement if, in the opinion of ECOLOGY, the RECIPIENT has unjustifiably failed to perform any obligation required of it by this loan agreement. Procedures for Termination. If this loan agreement is terminated prior to project completion, ECOLOGY shall provide to the RECIPIENT a written notice of termination at least five working days prior to the effective date of termination (the "Termination Date"). The written notice of termination by the ECOLOGY shall specify the Termination Date and, when applicable, the date by which the RECIPIENT must repay any outstanding balance of the loan and all accrued interest (the "Termination Payment Date"). Termination and Default Remedies No Further Payments. On and after the Termination Date, or in the event of a default event, ECOLOGY may, at its sole discretion, withdraw the loan and make no further payments under this agreement. Repayment Demand. In response to an ECOLOGY initiated termination event, or in response to a loan default event, ECOLOGY may at its sole discretion demand that the RECIPIENT repay the outstanding balance of the Loan Amount and all accrued interest. Interest after Repayment Demand. From the time that ECOLOGY demands repayment of funds, amounts owed by the RECIPIENT to ECOLOGY shall accrue additional interest at the rate of one percent per month, or fraction thereof. Accelerate Repayments. In the event of a default, ECOLOGY may, in its sole discretion, declare the principal of and interest on the loan immediately due and payable, subject to the prior lien and charge of any outstanding Senior Lien Obligation upon the Net Revenue. That is, the loan is not subject to acceleration so long as any Senior Lien Obligations are outstanding. Repayments not made immediately upon such acceleration will incur Late Charges. Late Charges. All amounts due to ECOLOGY and not paid by the RECIPIENT by the Termination Payment Date or after acceleration following a default event, as applicable, shall incur late charges. Intercept State Funds. In the event of a default event and in accordance with Chapter 90.50A.060 RCW, "Defaults," any state funds otherwise due to the RECIPIENT may, at ECOLOGY's sole discretion, be withheld and applied to the repayment of the loan. Property to ECOLOGY. In the event of a default event and at the option of ECOLOGY, any personal property (equipment) acquired under this agreement may, in ECOLOGY's sole discretion, become ECOLOGY's property. In that circumstance, ECOLOGY shall reduce the RECIPIENT's liability to repay money by an amount reflecting the fair value of such property. Version 10/30/2015 Page 27 of 38 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Documents and Materials. If this agreement is terminated, all finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT shall, at the option of ECOLOGY, become ECOLOGY property. The RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Collection and Enforcement Actions. In the event of a default event, the state of Washington reserves the right to take any actions it deems necessary to collect the amounts due, or to become due, or to enforce the performance and observance of any obligation by the RECIPIENT, under this agreement. Fees and Expenses. In any action to enforce the provisions of this agreement, reasonable fees and expenses of attorneys and other reasonable expenses (including, without limitation, the reasonably allocated costs of legal staff) shall be awarded to the prevailing party as that term is defined in Chapter 4.84.330 RCW. Damages. Notwithstanding ECOLOGY's exercise of any or all of the termination or default remedies provided in this agreement, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and/or the state of Washington because of any breach of this agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. S. User -Charge System: The RECIPIENT certifies that it has the legal authority to establish and implement a user -charge system and shall adopt a system of user -charges to assure that each user of the utility shall pay its proportionate share of the cost of operation and maintenance, including replacement during the design life of the project. In addition, the RECIPIENT shall regularly evaluate the user -charge system, at least annually, to ensure the system provides adequate revenues necessary to operate and maintain the utility, to establish a reserve to pay for replacement, to establish the required Loan Reserve Account, and to repay the loan. WATER QUALITY COMBINED FINANCIAL ASSISTANCE TERMS AND CONDITIONS LAST UPDATED ON 10/04/2016 GENERAL FEDERAL CONDITIONS If a portion or all of the funds for this agreement are provided through federal funding sources or this agreement is used to match a federal grant award, the following terms and conditions apply to you. A. CERTIFICATION REGARDING SUSPENSION. DEBARMENT. INELIGIBILITY OR VOLUNTARY Page 28 of 38 EXCLUSION: 1. The RECIPIENT/CONTRACTOR, by signing this agreement, certifies that it is not suspended, debarred, proposed for debarment, declared ineligible or otherwise excluded from contracting with the federal government, or from receiving contracts paid for with federal funds. If the RECIPIENT/CONTRACTOR is unable to certify to the statements contained in the certification, they must provide an explanation as to why they cannot. 2. The RECIPIENT/CONTRACTOR shall provide immediate written notice to ECOLOGY if at any time the RECIPIENT/CONTRACTOR learns that its certification was erroneous when submitted or had become erroneous by reason of changed circumstances. 3. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Page 29 of 38 person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact ECOLOGY for assistance in obtaining a copy of those regulations. 4. The RECIPIENT/CONTRACTOR agrees it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under the applicable Code of Federal Regulations, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction. 5. The RECIPIENT/CONTRACTOR further agrees by signing this agreement, that it will include this clause titled "CERTIFICATION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY EXCLUSION" without modification in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 6. Pursuant to 2CFR180.330, the RECIPIENT/CONTRACTOR is responsible for ensuring that any lower tier covered transaction complies with certification of suspension and debarment requirements. 7. RECIPIENT/CONTRACTOR acknowledges that failing to disclose the information required in the Code of Federal Regulations may result in the delay or negation of this funding agreement, or pursuance of legal remedies, including suspension and debarment. 8. RECIPIENT/CONTRACTOR agrees to keep proof in its agreement file, that it, and all lower tier recipients or contractors, are not suspended or debarred, and will make this proof available to ECOLOGY before requests for reimbursements will be approved for payment. RECIPIENT/CONTRACTOR must run a search in <http://www.sam.gov> and print a copy of completed searches to document proof of compliance. B. FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) REPORTING REQUIREMENTS: CONTRACTOR/RECIPIENT must complete the FFATA Data Collection Form (ECY 070-395) and return it with the signed agreement to ECOLOGY. Any CONTRACTOR/RECIPIENT that meets each of the criteria below must report compensation for its five top executives using the FFATA Data Collection Form. • Receives more than $25,000 in federal funds under this award. • Receives more than 80 percent of its annual gross revenues from federal funds. • Receives more than $25,000,000 in annual federal funds. Ecology will not pay any invoices until it has received a completed and signed FFATA Data Collection Form. Ecology is required to report the FFATA information for federally funded agreements, including the required DUNS number, at www.fsrs.gov <http://www.fsrs.gov/> within 30 days of agreement signature. The FFATA information will be available to the public at www.usaspending. o�ttp://www.usaspending.gov/>. For more details on FFATA requirements, see www.fsrs.gov <httn://www.fsrs.gov/>. Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton GENERAL TERMS AND CONDITIONS Pertaining to Grant and Loan Agreements With the state of Washington, Department of Ecology GENERAL TERMS AND CONDITIONS AS OF LAST UPDATED 1/22/2018 VERSION 1. ADMINISTRATIVE REQUIREMENTS a) RECIPIENT shall follow the "Administrative Requirements for Recipients of Ecology Grants and Loans — EAGL Edition." (https://fortress.wa.gov/ecy/publications/SummaryPages/1701004.html) b) RECIPIENT shall complete all activities funded by this Agreement and be fully responsible for the proper management of all funds and resources made available under this Agreement. c) RECIPIENT agrees to take complete responsibility for all actions taken under this Agreement, including ensuring all subgrantees and contractors comply with the terms and conditions of this Agreement. ECOLOGY reserves the right to request proof of compliance by subgrantees and contractors. d) RECIPIENT's activities under this Agreement shall be subject to the review and approval by ECOLOGY for the extent and character of all work and services. Page 30 of 38 2. AMENDMENTS AND MODIFICATIONS This Agreement may be altered, amended, or waived only by a written amendment executed by both parties. No subsequent modification(s) or amendment(s) of this Agreement will be of any force or effect unless in writing and signed by authorized representatives of both parties. ECOLOGY and the RECIPIENT may change their respective staff contacts and administrative information without the concurrence of either party. 3. ARCHAEOLOGICAL AND CULTURAL RESOURCES RECIPIENT shall take reasonable action to avoid, minimize, or mitigate adverse effects to archeological and historic resources. The RECIPIENT must agree to hold harmless the State of Washington in relation to any claim related to historical or cultural artifacts discovered, disturbed, or damaged due to the RECIPIENT's project funded under this Agreement. RECIPIENT shall: a) Contact the ECOLOGY Program issuing the grant or loan to discuss any Cultural Resources requirements for their project: • For capital construction projects or land acquisitions for capital construction projects, if required, comply with Governor Executive Order 05-05, Archaeology and Cultural Resources. • For projects with any federal involvement, if required, comply with the National Historic Preservation Act. • Any cultural resources federal or state requirements must be completed prior to the start of any work on the project site. b) If required by the ECOLOGY Program, submit an Inadvertent Discovery Plan (IDP) to ECOLOGY prior to implementing any project that involves ground disturbing activities. ECOLOGY will provide the IDP form. RECIPIENT shall: • Keep the IDP at the project site. • Make the IDP readily available to anyone working at the project site. • Discuss the IDP with staff and contractors working at the project site. • Implement the IDP when cultural resources or human remains are found at the project site. c) If any archeological or historic resources are found while conducting work under this Agreement: • Immediately stop work and notify the ECOLOGY Program, the Department of Archaeology and Historic Preservation at (360) 586-3064, any affected Tribe, and the local government. d) If any human remains are found while conducting work under this Agreement: Version 10/30/2015 State of Washington Department of Ecology Page 31 of 38 Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton • Immediately stop work and notify the local Law Enforcement Agency or Medical Examiner/Coroner's Office, and then the ECOLOGY Program. e) Comply with RCW 27.53, RCW 27.44.055, and RCW 68.50.645, and all other applicable local, state, and federal laws protecting cultural resources and human remains. 4. ASSIGNMENT No right or claim of the RECIPIENT arising under this Agreement shall be transferred or assigned by the RECIPIENT. 5. COMMUNICATION RECIPIENT shall make every effort to maintain effective communications with the RECIPIENT's designees, ECOLOGY, all affected local, state, or federal jurisdictions, and any interested individuals or groups. 6. COMPENSATION a) Any work performed prior to effective date of this Agreement will be at the sole expense and risk of the RECIPIENT. ECOLOGY must sign the Agreement before any payment requests can be submitted. b) Payments will be made on a reimbursable basis for approved and completed work as specified in this Agreement. c) RECIPIENT is responsible to determine if costs are eligible. Any questions regarding eligibility should be clarified with ECOLOGY prior to incurring costs. Costs that are conditionally eligible require approval by ECOLOGY prior to expenditure. d) RECIPIENT shall not invoice more than once per month unless agreed on by ECOLOGY. e) ECOLOGY will not process payment requests without the proper reimbursement forms, Progress Report and supporting documentation. ECOLOGY will provide instructions for submitting payment requests. I) ECOLOGY will pay the RECIPIENT thirty (30) days after receipt of a properly completed request for payment. g) RECIPIENT will receive payment through Washington State Department of Enterprise Services' Statewide Payee Desk. RECIPIENT must register as a payee by submitting a Statewide Payee Registration form and an IRS W-9 form at the website, http://www.des.wa.gov/services/ContractingPurchasing/BusinessNendorPay/Pages/default.aspx. For any questions about the vendor registration process contact the Statewide Payee Help Desk at (360) 407-8180 or email payeehelpdesk@watech.wa.gov. h) ECOLOGY may, at its sole discretion, withhold payments claimed by the RECIPIENT if the RECIPIENT fails to satisfactorily comply with any term or condition of this Agreement. i) Monies withheld by ECOLOGY may be paid to the RECIPIENT when the work described herein, or a portion thereof, has been completed if, at ECOLOGY's sole discretion, such payment is reasonable and approved according to this Agreement, as appropriate, or upon completion of an audit as specified herein. j) RECIPIENT must submit within thirty (30) days after the expiration date of this Agreement, all financial, performance, and other reports required by this agreement. Failure to comply may result in delayed reimbursement. 7. COMPLIANCE WITH ALL LAWS RECIPIENT agrees to comply fully with all applicable federal, state and local laws, orders, regulations, and permits related to this Agreement, including but not limited to: a) RECIPIENT agrees to comply with all applicable laws, regulations, and policies of the United States and the State of Washington which affect wages and job safety. b) RECIPIENT agrees to be bound by all applicable federal and state laws, regulations, and policies against discrimination. c) RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. d) RECIPIENT agrees to secure and provide assurance to ECOLOGY that all the necessary approvals and permits required by authorities having jurisdiction over the project are obtained. RECIPIENT must include time in their project timeline for the permit and approval processes. Version 10/30/2015 State of Washington Department of Ecology Page 32 of 38 Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton ECOLOGY shall have the right to immediately terminate for cause this Agreement as provided herein if the RECIPIENT fails to comply with above requirements. If any provision of this Agreement violates any statute or rule of law of the state of Washington, it is considered modified to conform to that statute or rule of law. 8. CONFLICT OF INTEREST RECIPIENT and ECOLOGY agree that any officer, member, agent, or employee, who exercises any function or responsibility in the review, approval, or carrying out of this Agreement, shall not have any personal or financial interest, direct or indirect, nor affect the interest of any corporation, partnership, or association in which he/she is a part, in this Agreement or the proceeds thereof. 9. CONTRACTING FOR GOODS AND SERVICES RECIPIENT may contract to buy goods or services related to its performance under this Agreement. RECIPIENT shall award all contracts for construction, purchase of goods, equipment, services, and professional architectural and engineering services through a competitive process, if required by State law. RECIPIENT is required to follow procurement procedures that ensure legal, fair, and open competition. RECIPIENT must have a standard procurement process or follow current state procurement procedures. RECIPIENT may be required to provide written certification that they have followed their standard procurement procedures and applicable state law in awarding contracts under this Agreement. ECOLOGY reserves the right to inspect and request copies of all procurement documentation, and review procurement practices related to this Agreement. Any costs incurred as a result of procurement practices not in compliance with state procurement law or the RECIPIENT's normal procedures may be disallowed at ECOLOGY's sole discretion. 10. DISPUTES When there is a dispute with regard to the extent and character of the work, or any other matter related to this Agreement the determination of ECOLOGY will govern, although the RECIPIENT shall have the right to appeal decisions as provided for below: a) RECIPIENT notifies the funding program of an appeal request. b) Appeal request must be in writing and state the disputed issue(s). c) RECIPIENT has the opportunity to be heard and offer evidence in support of its appeal. d) ECOLOGY reviews the RECIPIENT's appeal. e) ECOLOGY sends a written answer within ten (10) business days, unless more time is needed, after concluding the review. The decision of ECOLOGY from an appeal will be final and conclusive, unless within thirty (30) days from the date of such decision, the RECIPIENT furnishes to the Director of ECOLOGY a written appeal. The decision of the Director or duly authorized representative will be final and conclusive. The parties agree that this dispute process will precede any action in a judicial or quasi-judicial tribunal. Appeals of the Director's decision will be brought in the Superior Court of Thurston County. Review of the Director's decision will not be taken to Environmental and Land Use Hearings Office. Pending final decision of a dispute, the RECIPIENT agrees to proceed diligently with the performance of this Agreement and in accordance with the decision rendered. Nothing in this Agreement will be construed to limit the parties' choice of another mutually acceptable method, in addition to the dispute resolution procedure outlined above. 11. ENVIRONMENTAL DATA STANDARDS a) RECIPIENT shall prepare a Quality Assurance Project Plan (QAPP) for a project that collects or uses environmental measurement data. RECIPIENTS unsure about whether a QAPP is required for their project shall contact Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Page 33 of 38 the ECOLOGY Program issuing the grant or loan. If a QAPP is required, the RECIPIENT shall: • Use ECOLOGY's QAPP Template/Checklist provided by the ECOLOGY, unless ECOLOGY Quality Assurance (QA) officer or the Program QA coordinator instructs otherwise. • Follow ECOLOGY's Guidelines for Preparing Quality Assurance Project Plans for Environmental Studies, July 2004 (Ecology Publication No. 04-03-030). • Submit the QAPP to ECOLOGY for review and approval before the start of the work. b) RECIPIENT shall submit environmental data that was collected on a project to ECOLOGY using the Environmental Information Management system (EIM), unless the ECOLOGY Program instructs otherwise. The RECIPIENT must confirm with ECOLOGY that complete and correct data was successfully loaded into EIM, find instructions at: http://www.ecy.wa.gov/eim. c) RECIPIENT shall follow ECOLOGY's data standards when Geographic Information System (GIS) data is collected and processed. Guidelines for Creating and Accessing GIS Data are available at: https:Hecology.wa.gov/Research-Data/Data-resources/Geographic-Information-Systems-GIS/Standards. RECIPIENT, when requested by ECOLOGY, shall provide copies to ECOLOGY of all final GIS data layers, imagery, related tables, raw data collection files, map products, and all metadata and project documentation. 12. GOVERNING LAW This Agreement will be governed by the laws of the State of Washington, and the venue of any action brought hereunder will be in the Superior Court of Thurston County. 13. INDEMNIFICATION ECOLOGY will in no way be held responsible for payment of salaries, consultant's fees, and other costs related to the project described herein, except as provided in the Scope of Work. To the extent that the Constitution and laws of the State of Washington permit, each party will indemnify and hold the other harmless from and against any liability for any or all injuries to persons or property arising from the negligent act or omission of that party or that party's agents or employees arising out of this Agreement. 14. INDEPENDENT STATUS The employees, volunteers, or agents of each party who are engaged in the performance of this Agreement will continue to be employees, volunteers, or agents of that party and will not for any purpose be employees, volunteers, or agents of the other party. 15. KICKBACKS RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this Agreement to give up any part of the compensation to which he/she is otherwise entitled to or receive any fee, commission, or gift in return for award of a subcontract hereunder. 16. MINORITY AND WOMEN'S BUSINESS ENTERPRISES (MWBE) RECIPIENT is encouraged to solicit and recruit, to the extent possible, certified minority-owned (MBE) and women -owned (WBE) businesses in purchases and contracts initiated under this Agreement. Contract awards or rejections cannot be made based on MWBE participation; however, the RECIPIENT is encouraged to take the following actions, when possible, in any procurement under this Agreement: a) Include qualified minority and women's businesses on solicitation lists whenever they are potential sources of goods or services. b) Divide the total requirements, when economically feasible, into smaller tasks or quantities, to permit maximum participation by qualified minority and women's businesses. c) Establish delivery schedules, where work requirements permit, which will encourage participation of qualified Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton minority and women's businesses. d) Use the services and assistance of the Washington State Office of Minority and Women's Business Enterprises (OMWBE) (866-208-1064) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as appropriate. 17. ORDER OF PRECEDENCE In the event of inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: (a) applicable federal and state statutes and regulations; (b) The Agreement; (c) Scope of Work; (d) Special Terms and Conditions; (e) Any provisions or terms incorporated herein by reference, including the "Administrative Requirements for Recipients of Ecology Grants and Loans"; and (f) the General Terms and Conditions. 18. PRESENTATION AND PROMOTIONAL MATERIALS ECOLOGY reserves the right to approve RECIPIENT's communication documents and materials related to the fulfillment of this Agreement: a) If requested, RECIPIENT shall provide a draft copy to ECOLOGY for review and approval ten (10) business days prior to production and distribution. b) RECIPIENT shall include time for ECOLOGY's review and approval process in their project timeline. c) If requested, RECIPIENT shall provide ECOLOGY two (2) final copies and an electronic copy of any tangible products developed. Copies include any printed materials, and all tangible products developed such as brochures, manuals, pamphlets, videos, audio tapes, CDs, curriculum, posters, media announcements, or gadgets with a message, such as a refrigerator magnet, and any online communications, such as web pages, blogs, and twitter campaigns. If it is not practical to provide a copy, then the RECIPIENT shall provide a description (photographs, drawings, printouts, etc.) that best represents the item. Any communications intended for public distribution that uses ECOLOGY's logo shall comply with ECOLOGY's graphic requirements and any additional requirements specified in this Agreement. Before the use of ECOLOGY's logo contact ECOLOGY for guidelines. RECIPIENT shall acknowledge in the communications that funding was provided by ECOLOGY. 19. PROGRESS REPORTING Page 34 of 38 a) RECIPIENT must satisfactorily demonstrate the timely use of funds by submitting payment requests and progress reports to ECOLOGY. ECOLOGY reserves the right to amend or terminate this Agreement if the RECIPIENT does not document timely use of funds. b) RECIPIENT must submit a progress report with each payment request. Payment requests will not be processed without a progress report. ECOLOGY will define the elements and frequency of progress reports. c) RECIPIENT shall use ECOLOGY's provided progress report format. d) Quarterly progress reports will cover the periods from January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31. Reports shall be submitted within thirty (30) days after the end of the quarter being reported. e) RECIPIENT must submit within thirty (30) days of the expiration date of the project, unless an extension has been approved by ECOLOGY, all financial, performance, and other reports required by the agreement and funding program guidelines. RECIPIENT shall use the ECOLOGY provided closeout report format. 20. PROPERTY RIGHTS a) Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable property under this Agreement, the RECIPIENT may copyright or patent the same but ECOLOGY retains a royalty free, nonexclusive, and irrevocable license to reproduce, publish, recover, or otherwise use the material(s) or property, and to Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Page 35 of 38 authorize others to use the same for federal, state, or local government purposes. b) Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish ECOLOGY information; present papers, lectures, or seminars involving information supplied by ECOLOGY; or use logos, reports, maps, or other data in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to ECOLOGY. c) Presentation and Promotional Materials. ECOLOGY shall have the right to use or reproduce any printed or graphic materials produced in fulfillment of this Agreement, in any manner ECOLOGY deems appropriate. ECOLOGY shall acknowledge the RECIPIENT as the sole copyright owner in every use or reproduction of the materials. d) Tangible Property Rights. ECOLOGY's current edition of "Administrative Requirements for Recipients of Ecology Grants and Loans," shall control the use and disposition of all real and personal property purchased wholly or in part with funds furnished by ECOLOGY in the absence of state and federal statutes, regulations, or policies to the contrary, or upon specific instructions with respect thereto in this Agreement. e) Personal Property Furnished by ECOLOGY. When ECOLOGY provides personal property directly to the RECIPIENT for use in performance of the project, it shall be returned to ECOLOGY prior to final payment by ECOLOGY. If said property is lost, stolen, or damaged while in the RECIPIENT's possession, then ECOLOGY shall be reimbursed in cash or by setoff by the RECIPIENT for the fair market value of such property. I) Acquisition Projects. The following provisions shall apply if the project covered by this Agreement includes funds for the acquisition of land or facilities: 1. RECIPIENT shall establish that the cost is fair value and reasonable prior to disbursement of funds provided for in this Agreement. 2. RECIPIENT shall provide satisfactory evidence of title or ability to acquire title for each parcel prior to disbursement of funds provided by this Agreement. Such evidence may include title insurance policies, Torrens certificates, or abstracts, and attorney's opinions establishing that the land is free from any impediment, lien, or claim which would impair the uses intended by this Agreement. g) Conversions. Regardless of the Agreement expiration date, the RECIPIENT shall not at any time convert any equipment, property, or facility acquired or developed under this Agreement to uses other than those for which assistance was originally approved without prior written approval of ECOLOGY. Such approval may be conditioned upon payment to ECOLOGY of that portion of the proceeds of the sale, lease, or other conversion or encumbrance which monies granted pursuant to this Agreement bear to the total acquisition, purchase, or construction costs of such property 21. RECORDS, AUDITS, AND INSPECTIONS RECIPIENT shall maintain complete program and financial records relating to this Agreement, including any engineering documentation and field inspection reports of all construction work accomplished. All records shall: a) Be kept in a manner which provides an audit trail for all expenditures. b) Be kept in a common file to facilitate audits and inspections. c) Clearly indicate total receipts and expenditures related to this Agreement. d) Be open for audit or inspection by ECOLOGY, or by any duly authorized audit representative of the State of Washington, for a period of at least three (3) years after the final grant payment or loan repayment, or any dispute resolution hereunder. RECIPIENT shall provide clarification and make necessary adjustments if any audits or inspections identify discrepancies in the records. ECOLOGY reserves the right to audit, or have a designated third party audit, applicable records to ensure that the state has been properly invoiced. Any remedies and penalties allowed by law to recover monies determined owed will be enforced. Repetitive instances of incorrect invoicing or inadequate records may be considered cause for termination. All work performed under this Agreement and any property and equipment purchased shall be made available to ECOLOGY and to any authorized state, federal or local representative for inspection at any time during the course of Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Page 36 of 38 this Agreement and for at least three (3) years following grant or loan termination or dispute resolution hereunder. RECIPIENT shall provide right of access to ECOLOGY, or any other authorized representative, at all reasonable times, in order to monitor and evaluate performance, compliance, and any other conditions under this Agreement. 22. RECOVERY OF FUNDS The right of the RECIPIENT to retain monies received as reimbursement payments is contingent upon satisfactory performance of this Agreement and completion of the work described in the Scope of Work. All payments to the RECIPIENT are subject to approval and audit by ECOLOGY, and any unauthorized expenditure(s) or unallowable cost charged to this Agreement shall be refunded to ECOLOGY by the RECIPIENT. RECIPIENT shall refund to ECOLOGY the full amount of any erroneous payment or overpayment under this Agreement. RECIPIENT shall refund by check payable to ECOLOGY the amount of any such reduction of payments or repayments within thirty (30) days of a written notice. Interest will accrue at the rate of twelve percent (12%) per year from the time ECOLOGY demands repayment of funds. Any property acquired under this Agreement, at the option of ECOLOGY, may become ECOLOGY's property and the RECIPIENT's liability to repay monies will be reduced by an amount reflecting the fair value of such property. 23. SEVERABILITY If any provision of this Agreement or any provision of any document incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid provision, and to this end the provisions of this Agreement are declared to be severable. 24. STATE ENVIRONMENTAL POLICY ACT (SEPA) RECIPIENT must demonstrate to ECOLOGY's satisfaction that compliance with the requirements of the State Environmental Policy Act (Chapter 43.21C RCW and Chapter 197-11 WAC) have been or will be met. Any reimbursements are subject to this provision. 25. SUSPENSION When in the best interest of ECOLOGY, ECOLOGY may at any time, and without cause, suspend this Agreement or any portion thereof for a temporary period by written notice from ECOLOGY to the RECIPIENT. RECIPIENT shall resume performance on the next business day following the suspension period unless another day is specified by ECOLOGY. 26. SUSTAINABLE PRACTICES In order to sustain Washington's natural resources and ecosystems, the RECIPIENT is fully encouraged to implement sustainable practices and to purchase environmentally preferable products under this Agreement. a) Sustainable practices may include such activities as: use of clean energy, use of double -sided printing, hosting low impact meetings, and setting up recycling and composting programs. b) Purchasing may include such items as: sustainably produced products and services, EPEAT registered computers and imaging equipment, independently certified green cleaning products, remanufactured toner cartridges, products with reduced packaging, office products that are refillable, rechargeable, and recyclable, and 100% post -consumer recycled paper. For more suggestions visit ECOLOGY's web page: Green Purchasing, , https:Hecology.wa.gov/Regulations-Permits/Guidance-technical-assistance/Sustainable-purchasing. 27. TERMINATION a) For Cause ECOLOGY may terminate for cause this Agreement with a seven (7) calendar days prior written notification to the Version 10/30/2015 State of Washington Department of Ecology Page 37 of 38 Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton RECIPIENT, at the sole discretion of ECOLOGY, for failing to perform an Agreement requirement or for a material breach of any term or condition. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Failure to Commence Work. ECOLOGY reserves the right to terminate this Agreement if RECIPIENT fails to commence work on the project funded within four (4) months after the effective date of this Agreement, or by any date mutually agreed upon in writing for commencement of work, or the time period defined within the Scope of Work. Non -Performance. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance by the RECIPIENT of all of its obligations under this Agreement. In the event the RECIPIENT unjustifiably fails, in the opinion of ECOLOGY, to perform any obligation required of it by this Agreement, ECOLOGY may refuse to pay any further funds, terminate in whole or in part this Agreement, and exercise any other rights under this Agreement. Despite the above, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY and the State of Washington because of any breach of this Agreement by the RECIPIENT. ECOLOGY may withhold payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the RECIPIENT is determined. b) For Convenience ECOLOGY may terminate for convenience this Agreement, in whole or in part, for any reason when it is the best interest of ECOLOGY, with a thirty (30) calendar days prior written notification to the RECIPIENT, except as noted below. If this Agreement is so terminated, the parties shall be liable only for performance rendered or costs incurred in accordance with the terms of this Agreement prior to the effective date of termination. Non -Allocation of Funds. ECOLOGY's ability to make payments is contingent on availability of funding. In the event funding from state, federal or other sources is withdrawn, reduced, or limited in any way after the effective date and prior to the completion or expiration date of this Agreement, ECOLOGY, at its sole discretion, may elect to terminate the Agreement, in whole or part, or renegotiate the Agreement, subject to new funding limitations or conditions. ECOLOGY may also elect to suspend performance of the Agreement until ECOLOGY determines the funding insufficiency is resolved. ECOLOGY may exercise any of these options with no notification or restrictions, although ECOLOGY will make a reasonable attempt to provide notice. In the event of termination or suspension, ECOLOGY will reimburse eligible costs incurred by the recipient/contractor through the effective date of termination or suspension. Reimbursed costs must be agreed to by ECOLOGY and the recipient/contractor. In no event shall ECOLOGY's reimbursement exceed ECOLOGY's total responsibility under the agreement and any amendments. If payments have been discontinued by ECOLOGY due to unavailable funds, the RECIPIENT shall not be obligated to repay monies which had been paid to the RECIPIENT prior to such termination. RECIPIENT's obligation to continue or complete the work described in this Agreement shall be contingent upon availability of funds by the RECIPIENT's governing body. c) By Mutual Agreement ECOLOGY and the RECIPIENT may terminate this Agreement, in whole or in part, at any time, by mutual written agreement. d) In Event of Termination All finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, reports or other materials prepared by the RECIPIENT under this Agreement, at the option of ECOLOGY, will become property of ECOLOGY and the RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work Version 10/30/2015 State of Washington Department of Ecology Agreement No: WQC-2016-BremPW-00213 Project Title: Compact High Efficiency Vacuum Sweeper Recipient Name: City of Bremerton Page 38 of 38 completed on such documents and other materials. Nothing contained herein shall preclude ECOLOGY from demanding repayment of all funds paid to the RECIPIENT in accordance with Recovery of Funds, identified herein. 28. THIRD PARTY BENEFICIARY RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this Agreement, the state of Washington is named as an express third party beneficiary of such subcontracts with full rights as such. 29. WAIVER Waiver of a default or breach of any provision of this Agreement is not a waiver of any subsequent default or breach, and will not be construed as a modification of the terms of this Agreement unless stated as such in writing by the authorized representative of ECOLOGY. Version 10/30/2015 AGENDA BILL CITY OF BREMERTON �� CITY COUNCIL SUBJECT: Application for the Community Development Block Grant (CDBG) for Accessibility Improvements at Evergreen Rotary Park (Information Only) Study Session Date: August 8, 2018 COUNCIL MEETING Date: N/A Department: Presenter: Phone: Parks & Recreation Jeff Elevado (360) 473-5428 SUMMARY: This project is a continuation of previous accessibility improvements at Evergreen Rotary Park completed in 2014 (Inclusive Playground) and 2016 (Accessible Sidewalk/Pathway Extension) funded in part by CDBG. This project will increase park accessibility by providing upgrades to paving (uplifted by tree roots), pathways (flooded by storm water) and replacement of non -accessible restroom fixtures and site furniture. Total preliminary estimates to complete this work is $57,500. ATTACHMENTS: 1). Evergreen Rotary Park: Estimate of Probable Costs. FISCAL IMPACTS (Include Budgeted Amount): $39,500 CDBG funding (no match required), In-kind labor will be absorbed in the Parks & Recreation Administrative and Maintenance budgets. STUDY SESSION AGENDA: 0 Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x No Action Required; Information Only RECOMMENDED MOTION: N/A Agree with staff recommendation to make application to the Community Development Block Grant Program. Form Updated 01/02/2018 ❑ 00 O O O O O O O O 00 O O O O O O 00 O O 0 z O Y m 00 00 O O O 00 O 00 00 N N O O O O 00 O O N N V N (G M M V N N 00 Z J � eR 0) � 0) � � eR � O m ❑ F O O 0 O O O O O 0 O O O O O 0 O O O O O O O O O O O O O O U J O O 000 0 O O O LO r- O O O O Lf) r- 0 O O �,L O O O O O O O O O O O O tr) c r F Ulf') O O N 0 LQ (')0 M� O V) O O Lo V) NT 0 0 ER ER EiTN ER ER ER V AFT 69 69 VT Cl) ti H LL 00 000 00 FFj oF0 0000F 0o0 0 F D O U O 0OOFLnOOOOLno O� O � 00 0 00000 o0000F 00000 F O U7 C,4 O 61? j r-O �61? L 6 � 6 O L 7 OV V U7V 7 �o� N � N fn tC4cnZ 7 O U LU J m Quiuiuicr x uiuiwuicrzui x x ui x ui�uicruiw x x x J J J J J J J J J J J M W a F Z 0 O 0 O 0 O 0 0 0000000 0 0 0 00 O 000000 000 0 0 O O 00 O (O N M 0 - M LO 0 (O 0 M 0 M Lu D C LU LU zLU �❑ LU 2 Q Z ❑ O W = IX tL cr cr O W a ) a ) z 06 0 w z z 00 r z O 0 (7 W LU cr 'o w~ U) 0 w m X ° p 0 F wg c co a oo J (9 LL� z 0� cn O) z Q Q ~ z� z 0LL o O g O coz in 'L O 0 w L �J Uw Lpw LL) Q Ix cr W W U) LU cr Q J w D U p 0co a z ILY O IX w 0 z U) LL U) v~i m Co O U M 0 Y z a z W waLu U QLU Qw Q OQO z z w w z U (D (D d �> x ❑zo �Yw�O (70 QO�O�cn� 2~az�U) Of w � Q z p o~ Q z U LL ~ w a > w � W Q (7 O H J a zJ 06 x_❑00cr J z g o Q 2 ❑ z w Q wOJoxO z w m z w O O z z(9 LU a CO ?� o oozzw(7 ��— z W aaQ �m 0 a wco <0 00 z �WwKow IX w Ix w crw�za� w - a gym❑ J ❑ � a �zE-L J ❑—cr U J LU LU U v� d W z��� (7cr>0 wUww wc4ww ci 2a c4 a O U? �Y �Y�m(~OY w ❑ a zwz� wawa d' oFf W Q_Q_Q co0<w LU C() W F 11) Q Uz F p w z?zJ�? wQw LU WO N M V 0 0 I- 00 O F Z LU AGENDA BILL CITY OF BREMERTON CITY COUNCIL SUBJECT: PFGPGsed ollhl;^ WearIN9C -2 Update on Telecommunication Tower Option and Lease Agreement with Vertical Bridge, LLC for Forest Ridge Park A7 Study Session Date: August 8, 2018 COUNCIL MEETING Date: N/A Department: Presenter: Phone: Parks & Recreation Jeff Elevado (360) 473-5428 SUMMARY: The City was contacted by a T -Mobile Site Acquisition representative in late 2016 relative to locating a telecommunication tower on Parks and Recreation property in Forest Ridge Park near the existing Public Works water tanks. The proposal includes construction of a 150 foot monopole and antenna array with accompanying equipment buildings. The option was later acquired by Vertical Bridge Development, LLC. The City's Legal and Parks & Recreation Departments have been in negotiations with the contractor to finalize the tower option and lease agreement that is presented here. The proposal has been presented at several Parks and Recreation Commission public meetings. ATTACHMENTS: 1) T,,,A,or nr+;„I, and ease ngFee., ept; 2) Fifo Networks Report; 3) Bremerton Parks & Recreation Commission Advisory Report FISCAL IMPACTS (Include Budgeted Amount): Base Rent Income revenue of $1,750 per month ($21,000 annually) and a $5,250 one-time payment. STUDY SESSION AGENDA: x❑ Limited Presentation ❑ Full Presentation STUDY SESSION ACTION: ❑x Update Only RECOMMENDED MOTION: None at this time Form Updated 01/02/2018 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com Comparing Wireless Telecommunications Antenna Heights Case Study: T -Mobile and Forest Ridge Background On April 4 of 2016, T -Mobile contacted the City of Bremerton about leasing space for a cell site at an existing tower, commonly referred to as the KBRO tower, on City property in Forest Ridge Park. On April 7, 2016, 1 sent the T -Mobile representative some requested information about how commercial electrical power reaches the KBRO tower, from a utility pole near the intersection of South Hartford Avenue and 1" Street. This utility pole is just south of Forest Ridge Park. There is some confusion over whether or not this intersection was ever considered by T -Mobile as a possible cell site. At least one City representative thought it was under evaluation. To my knowledge, it was never considered, but I have included it in this report for the sake of completeness, and in case it was a potential site. In the following days, T -Mobile concluded that the KBRO tower is unsuitable for their purposes. At that time, they began searching for an alternate location that would serve the same populace. On May 9 of 2016, a T -Mobile representative contacted me about modifying one of their existing installations, located at 31016th Street, which is just north of the park. They were interested in replacing the existing City pole (which they said was 80 feet) with a taller pole (150 feet) and replacing their old equipment with newer equipment at the higher elevation. Later, in October of 2016, T -Mobile contacted the City about constructing a new site adjacent to the City's reservoir at Forest Ridge Park. This proposal included the construction of a new 150 foot monopole. To summarize, I have mentioned four possible sites: 1. The existing KBRO tower, which was rejected. 2. A utility pole at the intersection of S. Hartford Ave. and 1" Street. 3. A utility pole at 31016 1h Street (current site, 80 feet, considering 150 feet). 4. A 150 foot monopole adjacent to the Forest Ridge Reservoir (possible new site). Sites 2, 3, and 4 are the subject of this report. For their locations, refer to Figure 1 below. For reference, the KBRO tower location is also marked. Page 1 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com 31016" Street (current site) as I .. "". �fo r k � 5. Hertford Ave. and V Strout Figure 1: Possible T -Mobile sites for improved coverage The middle of Forest Ridge Park is at a higher elevation than either 1" Street or 6t" Street. A telecommunications site at 15t Street is blocked from providing coverage north of the park, and a telecommunications site at 6t" Street has its signal blocked to the south. Page 2 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com T -Mobile Antenna Simulations As part of the request for constructing a 150 foot monopole at the reservoir, T -Mobile provided some antenna simulation pictures. These pictures were taken at street level, and geometric calculations were performed so that a photograph of a monopole could be inserted into the picture and appear approximately to scale. See Figure 2 and Figure 3 below. Figure 2: From Summit Ave. N., looking Northwest Page 3 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com T -Mobile Antenna Simulations, continued Figure 3: from Marion Ave. N., looking East Page 4 An Inquiry Made FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com As part of the City's consideration of T -Mobile's request, the following questions were asked: 1. Does the tower have to be visible above the tree line? 2. Is it necessary to have the tower at 150 feet instead of 80 feet? The rest of this report is the answer to those, and similar, questions. The Quick Answer To begin, here's the short, fast answer: if I was the RF engineer, and I was told I had to keep the antennas below the tree line at Forest Ridge, I'd say, "Never mind. They won't let us build a usable site, so we need to look elsewhere." Below the tree line at that location would be totally useless. Now, for the explanation. In More Detail Those who are familiar with the controversies surrounding wireless communications installations may have heard that sometimes wireless signals without direct line of site (LOS) can be practical. In some cases, that can be true. However, this isn't one of those cases. The site will need to support 1.9 gigahertz (GHz) frequencies, and almost certainly higher frequencies (2.5 GHz is being built out in many places now). These frequency bands (both 1.9 GHz and 2.5 GHz) don't perform well at all in a coniferous screen. Additionally, the RF engineer, if he or she knows what they're doing, will plan for at least ten years of tree growth and make the tower or monopole tall enough to compensate. It is further necessary to consider that the site is at a higher elevation than the area that T -Mobile is trying to cover. The usable signal will be aimed at a downward angle, which means it will have to go through more of the trees to get to the populated area. The antennas need to be high enough so that the downward angle is clear of lower trees slightly farther away. Economic Motivation Something to keep in mind is that the taller the tower, the more it costs the carrier to build and maintain it. The carrier will use several factors in making the height decision, but the end result is that they'll select the shortest tower that will reliably do the job, because they don't want to spend the money to build more tower than they need. Comparison To Existing Installation Now, about the current site with its 80 foot pole: the reason it could be only 80 feet tall is because it was in the right-of-way. It has the twin advantages of being closer to the desired population, and less obstructed. Page 5 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com Note that the existing site, to remain useful into the future, can't remain at the same height. T -Mobile requested increasing the height of the pole at this site to 150 feet. The height increase would be necessary to (1) add new equipment while continuing to operate the older equipment that serves customers with older phones, (2) improve coverage in difficult to reach areas around the hill, and (3) add radios (transceivers) to support more customers as populations grow. "Math and physics. It's all math and physics." In this section, we'll examine some of the statements made earlier in more detail. The purpose is to explain (1) why a line of site (LOS) radio path is sometimes necessary, and sometimes not, and (2) why a given height is chosen for a given tower. INTRODUCTION 1. Radio waves and light waves are both electromagnetic energy. a. The only difference between a radio signal (such as a cellular signal) and light is the frequency of oscillation. Radio Frequency (RF) energy is at a lower frequency than light. It can't be detected by the human eye because of its lower frequency, but a radio wave behaves the same way a light wave does. Electromagnetic energy - radio waves and light - behaves in one of three ways when it encounters a solid object. a. It may penetrate the object (coming out the other side), b. It may be absorbed by the object (goes in, but doesn't come out), or c. It may be reflected by the object (like light off a mirror). Let me add one clarification to item 2 above: electromagnetic energy behaves in all three ways for every object: there will be some percentage of reflection, absorption, and penetration, and the percentages will total up to 100 percent. Using light as our electromagnetic energy, here are some examples: CLEAR GLASS. Almost all light passes through an ordinary, clear glass window. Most of the light penetrates. There is also a small amount of light absorbed by the glass, where it is re -radiated as heat. That small percentage of the light is absorbed by the window. When you see glare off a window, that is reflection. A small percentage of reflection always happens, but you may or may not be standing at an angle that allows you to observe it. 2. TINTED WINDOWS. A car with tinted windows allows a smaller percentage of penetration, and has higher percentages of both absorption and reflection. SILVER MIRRORED SUNGLASSES. These sunglasses have a very high percentage of reflection, some absorption, and the penetration number is often a smaller number than for tinted windows. Page 6 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com For any given material, the percentages of penetration, reflection, and absorption vary by frequency. Here are some examples of how different frequency bands are received inside a wooden house. 1. At 27 MHz (CB radio), a wooden house is like clear glass to alight wave. 2. At 450 MHz (older police radios), a wooden house is like tinted windows. 3. At 850 MHz (some cellular systems and modern police radios), a wooden house is like very dark sunglasses. Most of the radio waves go into a building through the actual clear glass windows, and then are reflected off of the interior walls to move around inside. The wood exhibits a lot of both absorption and reflection. 4. At 1,900 MHz (T -Mobile's first cell phones), a wooden house is like silver mirrored sunglasses. Compared to 850 MHz, the percentage of reflection goes up, and the percentage of absorption goes down. Again, most of the signal enters the building through the clear glass windows. 5. At 2,500 MHz (the newest wireless phones), the radio waves behave pretty much the same as light reflecting off a mirror. The only useful signal enters through the windows and then reflects off of the interior walls to travel through the building. ► IM Now, with all of this background information, we're ready to discuss the difference between putting the antennas at 80 feet at an intersection, and putting them below the tree line by the Forest Ridge reservoir. 1. At a height of 80 feet at an intersection of two streets, a. The antennas are higher than most houses, and b. The electromagnetic waves can reflect off of houses - and trees - to travel down the street and even around corners and down side streets. c. The trees are reflectors and the roads are corridors for the radio waves. Below the tree line, completely encircled by trees at the reservoir, the radio waves are reflected multiple times until they are simply absorbed by the trees. The only radio waves that escape are the ones that are reflected up into the sky, in a conical pattern. If the antennas are mounted above the tree line at the reservoir, then the electromagnetic waves can make the journey to the surrounding streets and neighborhoods. Also note that the coverage areas of the three locations will be vastly different. Page 7 FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com At the intersection of S. Hartford Ave. and 1" Street, with the antennas at 80 feet, the signal is entirely blocked to the north. Specifically, there will be no signal on the far side of Forest Ridge Park. At 31016 1h Street, the signal is blocked to the south of Forest Ridge Park. On the other hand, if the antennas are mounted on a monopole at the reservoir (high enough to clear the trees), the coverage area is much larger, and fewer towers may be needed to accommodate future growth in the numbers of cellular subscribers. The remainder of this report shows calculated coverages from each of the three locations. Coverage maps are made by using propagation analysis software designed for this purpose. Propagation analysis software is a generic engineering tool, and can be used for any frequency operated by any radio licensee. For example, the same propagation analysis software can be used to determine the coverage for a police or ambulance radio system, a commercial broadcast AM or FM station, a cellular carrier, or any other wireless service. Note, however, that the coverage pattern will be different for each frequency. For each of the three locations, there are two propagation analyses shown: one assuming a 150 foot tower, and one assuming an 80 foot tower. This combination of six propagation analyses allows us to compare one site with another, and also to compare the effects of two different tower or pole heights at the same site. Page 9: 31016 1h Street, 150 foot pole, with satellite map for comparison Page 10: S. Hartford and 1st Street, 150 foot pole, with satellite map for comparison Page 11: Water Tower, 150 foot pole, with satellite map for comparison Page 12: 3101 6th Street, 80 foot pole, with satellite map for comparison Page 13: S. Hartford and 1st Street, 80 foot pole, with satellite map for comparison Page 14: Water Tower, 80 foot pole, with satellite map for comparison Page 15: Comparing 150 and 80 foot poles: 3101 6th Street Page 16: Comparing 150 and 80 foot poles: S. Hartford and 1st Street Page 17: Comparing 150 and 80 foot poles: Water Tower Page 8 1 Ip 1I'll SI £ V' ixdF y�RFY�P' y� I [. "i�'mM1ard aey t l dl Y /q KA d'G If & T,�naq'�Saund V ��1 p.,=A h da�.� ,•Mq4� p may G:`6 lea IC nle !!r,= d, n•�di °c C 3 xqa •A n. #i N. P rky 1� r y, �# EIT F @ n A nrK 4*g'�A 1 cif !y X17,• � _ 4/ iYm sl�-. hon IVQ - NP, la A. . V d+' 0 Pahm nl r� Mo l'r+5a � �/ �+ }� � V +�1� HarSorslde Fountain Park �d 4.1 pont Av �dc . - a .Gooylep^ 1•�� ea nn �._ R "`�. � ■E■ Satellite Map ' • • Forest Ridge e /� « � Bina ♦ �4 R•f ''F.° ^- f (' riYv 1I'll SI Ip ¢■ £ V' ix d F y� R FY�P" y� I [. .'ice mM1ard aey /" KA d'G If & T,�nSaund ` ��1 p.,=A h da�.� ,•;�y Mq4� p lie IC Vle !!r,_ 3 xqa N. P rky 1� r y, �# EIT F @ n A nrK a` dj■�� � ))ff "" hon Ifte - NP, la A. . V d+' 0 Pahm nl r� Mo l' r+5a � �/ �+ }� � V +�1� HarSorslde Fountain Park �d 4.1 pont Av �dc - ...Gooylep^ ��� ea nn �._ R "`�. � ■E■ Satellite Map — Centered 0 Forest Ridge Park N ry j4 ze AVas ���• � t� °s� � ' ���� �' ,. tlA e ,• �. n° W ems, �y � �" r ♦ � J p 4 ■�� �l,+ P P }_�yP a �"° Erla tl I P C�KR Klllao'G If. rl 1p 5* y 'A f N. P rk i r KlsapL k ®Mobile H P k y k ^' dF st Rrd®e Park Y � yds At • : � � IP rk;. r worst avdc '.,.' Googled.ymam M: • 4 ■E■ ji, TtKKR P P� f e l �+. A q Ill 1� Sfate Pan: 4 _. p•,.k r"v 0 �� —y W � ..T �B_P en o�disd 8e�y � d KA d'G If& " A I �af� miy Glu6 tSa de Enet d pp! I q NA Ik J7 S i.\ i' E✓etg e A t A� "�fy x4 i. GG—PMIK— le nnn It` K tsapLak 5 ! ;_.� � del Oepenment f �" ®Moblil P Ak .� a ^' VF stRd®e Park KK�Y Harb—ide Fountain Patk —A, t: J• � °�-".-. f � �+� mgr 1 "ills ff . I t" At ®®®PPP rg,1711 +.. v. G i,l 4��� - X11. �^, �Yd`f�[x { � 1 •�� X�� ��d �Ay a i3 forst av wfc'. " rGoO9ie . sirrry.:i � e�.1.4 ■E■ f t n" I. it aMk' ae'm '.iLRpi ;�,� r "� ♦ r rte. 1 r � > � t %.e '' a �"° Erla tl I P C�KR Klllao'G If. rl 1p 5* y 'A f N. P rk , r KlsapL k ®Mobile H P k y k ^' E1F st Rrd®e Park •A,i is :4 At a � � IP rk;. r worst avdc '.,.' Googled.ymam M: • 4 ■E■ Fy,� �. s P ''tet Kn P ji, f l,. A q Ill l� SIP P Ik S �i 5 1 ..R kYP°M 4 d • 1 � ICo pier rS- � °•� � n 3 rk x a: '��' � '�l�t� � k�Ta r a1n � �'I �� • . ♦* 1 9ldifinem ral 1' E' J OCamp IAXean I p, menon n e K tsap Lak I' `'V W. dal DepaHmnt ®2bftH P Hat6orslde Founlain Perk Y1t, a. iL � Ifi 3� forst AvIf " Google yta er lryl°� '� ■E■ µoi /y eyl mAf •. • �� e 1 • �Lrl, 4 Ak y 1, - 1 a ♦ ; ;tk m "",d Af r I yall pa RY ' � i i �' h 1 �i "'l..f'S• '� vvql.cma 'Mer ■ +� ; 1t` .k:?*- 10 ♦ 41. YO 4 a , FA r,*. 7r d� a { en n � ♦ m� Conclusion FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com Comparing the six scenarios, we see that: 1. For all locations, the coverage is improved if the antennas are at 150 feet compared to 80 feet. 2. The proposed location at the highest elevation (the water tower) provides the best coverage if the antennas are at 150 feet. 3. However, the water tower location provides the worst coverage if the antennas are below the tree line. Final Remarks While this report is a specific analysis of possible locations for a T -Mobile site, it contains many explanations and descriptions that are true of all wireless telecommunications installations. This report is a useful reference in considering other potential installations by other carriers. Report prepared by: Bob Young December 1, 2016 Page 18 OVERVIEW FIFO Networks 227 Bellevue Way NE # 239 Bellevue, WA 98004 Phone 425-462-4034 http://www.fifonetworks.com About Bob Young Bob Young is the Founder and CEO of Peripheral Vision Communications Inc., dba FIFO Networks. He is also a Professor of Wired and Wireless Technology at Bellevue College, where he provides training to Information Technology professionals and Telecommunications professionals. Courses he has developed and which are currently available include Ethical Hacking and Cyber Security, and two courses in the Cyber Security Essentials series: (1) Data Management and (2) Hiring Security Professionals. For the last several years he has been flying throughout the U.S. to deliver technical training to the technicians and engineers at public utilities and wireless carriers. UTILITY COMPANIES Mr. Young has provided training and consulting to regional utilities in network design, security, and maintenance for secure data systems, Voice over IP (VoIP) phone systems, and secure Wi-Fi network access. WIRELESS COMPANIES He has trained the system engineers at wireless telecommunications carriers in complex subjects such as data traffic management, calculations, and projections. He also teaches the technical staff the skills needed to operate test equipment to test and maintain the systems. CLIENTS He has provided specialized technical instruction to Verizon Wireless, AT&T Wireless, Sprint, T -Mobile, Ericsson, Centuryl-ink, Microsoft, Comcast, Bombardier, Boeing, Georgia Power, Alabama Power, Memphis Light Gas & Water, Southern California Edison, CenterPoint Energy, San Diego Gas & Electric, USMC, and many others. EARLIER At the beginning of his career, Mr. Young received a Secret clearance from the US Navy for his work with wireless communications electronics. Before starting his own company, he was the Director of National System Development at Western Wireless (Cellular One). Page 19 SUBJECT: Acceptance of the Lodging Tax Advisory Committee's Recommendations for FY -2019 Funding Allocations AGENDA BILL CITY OF BREMERTON B1 CITY COUNCIL Study Session Date: COUNCIL MEETING Date: Department: Presenter: Phone: Auaust 8. 2018 August 15, 2018 City Council Pat Sullivan, LTAC Chair (360) 473-5280 SUMMARY: The City of Bremerton anticipates approximately $850,000 in revenue will be available for distribution in Fiscal Year 2019. The Lodging Tax Advisory Committee (LTAC) received sixteen (16) requests for funding. Committee members reached consensus and are recommending funding to all of the applicants and to continue the City of Bremerton's commitment to the Kitsap Conference Center and the Admiral Theatre Foundation. Recommended allocations include $437,000 for non-profit organizations and $13,000 to be carried over as part of the beginning fund balance for Fiscal Year 2019. It is also recommended that $250,000 be allocated for operations at Kitsap Conference Center. The City of Bremerton has an agreement with the Admiral Theatre Foundation through 2022 for $150,000/year. ATTACHMENTS: 1) Summary of LTAC Recommendations for2019 2) Lodging Tax — Frequently Asked Questions Summary (MRSC) FISCAL IMPACTS (Include Budgeted Amount): RCW 67.28 specifies that a municipality may either accept or reject the committee's recommendations. If any individual recommendation is rejected by City Council, then the unallocated amount will be held in the fund's reserve and that unfunded organization will have significantly reduced marketing efforts for Bremerton. STUDY SESSION AGENDA: ❑ Limited Presentation x❑ Full Presentation STUDY SESSION ACTION: ❑ Consent Agenda ❑ General Business ❑ Public Hearing RECOMMENDED MOTION: Move to accept the Lodging Tax Advisory Committee's recommendations as presented; and to include the allocations in the City of Bremerton's Fiscal Year 2019 Proposed Budget. COUNCIL ACTION: ❑ Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action Form Updated 01/02/18 BREMERTON LODGING TAx ADVISORY COMMITTEE FY 2019 REQUESTS FOR FUNDING Name of Organization Request Recommendation City of Bremerton Kitsap Conference Center $200,000 $75,000 Bremerton Historic Ships Association $79,000 $70,000 Visit Kitsap Peninsula (2) $45,000 & $75,500 $45,000 Washington State Science & Engineering Fair $45,000 $43,000 Bremerton Chamber of Commerce $38,000 $30,000 Roxy Bremerton Foundation $33,000 $30,000 Kitsap Entrepreneurial Center Kitsap Harbor Festival $40,000 $25,000 Downtown Bremerton Association WayzGoose Kitsap $30,000 $23,000 Downtown Bremerton Association $50,000 $20,000 Kitsap Historical Museum $26,600 $20,000 Bremerton Symphony Association $25,000 $20,000 City of Bremerton Quincy Square on 4`" Street Project $25,000 $10,000 Manette Business Association Heavy Jeens Project $12,270 $9,000 Dominion Historical Workboat Association $15,000 $8,000 Kitsap Pride $6,500 $6,500 Collective Visions Gallery $2,500 $2,500 SUB TOTAL $748,370 $437,000 BEGINNING FUND BALANCE/RESERVE $13,000 GRAND TOTAL RECOMMENDED FY2019 ALLOCATIONS $450,000 "Does not include Kitsap Conference Center ($250,000) & Admiral Theatre ($150,000) Operations" LODGING TAX Frequently Asked Questions What is the Lodging Tax? RCW 67.28 The lodging tax, also referred to as the hotel -motel tax, is a consumer tax on lodging charges for periods of less than 30 consecutive days for hotels, motels, rooming houses, private campgrounds, RV parks, and similar facilities. How Can the Lodging Tax Revenues Be Used? The guiding principle for the use of lodging taxes is that they must be used for activities, operations and expenditures designed to increase tourism. Specifically, lodging taxes can be used for: • Tourism marketing; • Marketing and operations of special events and festivals designed to attract tourists; • Operations and capital expenditures of tourism -related facilities owned or operated by a municipality or a public facilities district; or • Operations of tourism -related facilities owned or operated by nonprofit organizations RCW 67.28.1816. Note that, as of July 1, 2013, capital expenditures for tourism -related facilities owned by nonprofit organizations are no longer permitted expenditures of lodging tax funds. What is Included in Tourism Marketing and Operations? It includes activities defined as "tourism promotion" in state law RCW 67.28.080. • Advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; • Developing strategies to expand tourism; • Operating tourism promotion agencies; and • Funding the marketing or operation of special events and festivals designed to attract tourists. What is a "Tourism -Related Facility"? A tourism -related facility is a real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is (a) owned by a public entity, nonprofit organization (including a non-profit business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce) and (b) used to support tourism, performing arts, or to accommodate tourist activities RCW 67.28.080. Lodging Tax Advisory Committee (LTAC) BMC 2.38 This committee must have at least five members, appointed by the governing body. The committee membership must include at least two representatives of businesses that are required to collect the lodging tax, at least two people who are involved in activities that are authorized to be funded by this tax, and one elected city official who serves as chairperson of the committee. The statute also provides that a person who is eligible under the first category is not eligible for appointment under the second category, and vice versa. • Organizations representing hotels and motels and organizations involved in activities that can be funded by this tax may recommend people for membership. • The number of committee members from organizations representing the hotels and motels and the number from organizations involved in activities that can be funded must be equal. • A city's committee may include a non-voting elected official and vice -versa. • The governing body must review the membership of the committee annually. Applications for Lodging Tax Funds In counties or cities of at least 5,000 population, applications must be submitted directly to the lodging tax advisory committee (LTAC). In counties or cities of less than 5,000, applications are submitted to the county or city. The law is silent on how often the awards should be made. Some jurisdictions choose to make awards as part of their annual budget cycle. Others also make mid -year awards to account for unexpected increases or decreases in projected revenue. Who Must Apply? • Convention and visitors bureaus; • Destination marketing organizations; • Nonprofits, including main street organizations, lodging associations, or chambers of commerce; • Municipalities — The State Auditor's Office is interpreting the law to mean that all users of funds, including municipalities, are considered applicants and must follow relevant application procedures. So, cities and counties should submit applications for their own projects to the LTAC. What is Included in the Application? All applications must include estimates of how funding the activity will result in increases to people staying overnight, travelling 50 miles or more, or coming from another state or country. To ensure this data is collected, jurisdictions should require this information on their lodging tax application forms. There is no requirement that priority for funding be given to applicants expected to generate the most travelers, and lodging tax revenue may still be awarded to recipients who generate few of these types of travelers. Review and Selection of Applications In a municipality of at least 5,000 population, the LTAC receives all applications for lodging tax revenue and recommends a list of candidates and funding levels to the municipality's legislative body for final determination. If a municipality under 5,000 chooses to establish a LTAC, they may, but do not have to, follow these requirements. What Does the Municipality Do with the LTAC's Recommendations? The legislative body "may only choose recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee." However, a city or county does not have to fund the full list as recommended by the LTAC and can choose to make awards in the recommended amounts to all, some, or none of the candidates on this list. The selected recipients must be awarded the amounts recommended by the LTAC. Can the city council award more money to an applicant than the LTAC recommends? No, a city council cannot award more funding to an applicant than the lodging tax advisory committee recommends. The relevant statute, RCW 67.28.1816(1)(b)(ii), reads as follows: The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee. Therefore, if a city chooses to award funding to a particular recipient, then it is limited to the amount of funding recommended by the LTAC. Contracts with Recipients of Lodging Tax Funds Because of the state constitutional gift of public funds prohibition, a city or county should enter into a contract with any private organization providing marketing services, operating special events or festivals, or any other tourist promotion activity. The contract should spell out the tourism -related services to be provided in exchange for city or county funding and what reports will be required. Also, any organization doing promotion on behalf of the city or county may only spend lodging tax funds on items that the city or county itself could fund. This prohibits, for example, any expenditures on promotional hosting. Reporting Requirements Started in 2014 & Report Available at www. leq.wa.gov/ • All entities receiving lodging tax funds must provide information to their respective local • government on their use of these funds as required by RCW 67.28.1816. This includes local governments that directly use lodging tax funds for municipal purposes, such as municipal facilities or community events. Local governments will then, in turn, report this information annually to the Joint Legislative & Audit Review Committee (JLARC) using their on-line reporting system. • Local governments should, as part of their contract with recipients, require that the report be provided immediately after the event or activity. • The deadline for local governments to submit the annual data to JLARC is March 15 for the year ending the previous December 31. • JLARC does not provide advice on how to estimate tourism impacts. Good faith estimates of actuals can be reported provided applicants and users of funds indicate how those estimates will be developed. All information (including descriptions of how actual impacts were estimated) will be available for public review. • JLARC can be contacted for technical issues associated with the reporting portal by emailing jlarc@leg.wa.gov .MRSC Kcal Government Success Material from www.mrsc.org & "Ask MRSC" Special Issue Newsletter dated July 13, 2016... INFORMATION ONLY ITEM CITY OF BREMERTON CITY COUNCIL SUBJECT: Discussion on Affordable Housing Issues HANDOUTS: D2 Study Session Date: August 8, 2018 Presenter: Council President Eric Younger Phone: (360) 473-5280 1) Bremerton's Affordable Housing Inventory 2) Homelessness in Kitsap County (Bremerton) 3) Subsidized Housing Inventory 4) Terner Center Research Series: The Cost of Building Housing 5) Homelessness & Housing Toolkit for Cities (AWC & MRSC) 6) Discussion Notes on Whiteboard 7) Proposed Ordinance amending Chapter 3.78 of the BMC entitled "Multifamily Property Tax Exemptions to add provisions relating to Affordable Housing STUDY SESSION AGENDA: Form Created 5/4/15 ❑ No Presentation ❑x Full Presentation Bremerton's Affordable Housing Inventory Project Name Total Units Location Albright House 39 District 1 Pinewood Manor 39 District 1 Shadow Creek 32 District 1 Canterbury Manor 76 District 2 Eastwynd Apartments 64 District 2 Tamarack 83 District 2 Viewcrest Village Apartments 300 District 2 Vintage at Bremerton Senior Living 143 District 2 Winfield 22 District 2 Charter House Apartments 30 District 3 Max Hale Center 53 District 3 Frank Chopp Place 57 District 4 Housing for Young Adult Transitional Program 5 District 4 Ninth & Warren 8 District 4 Transitional Duplex 2 District 4 Benedict House 25 District 5 Duplex II 2 District 5 Hewitt Avenue- KCR Transitional Housing 6 District 5 Marion Court Apartments 35 District 5 Opal Court 12 District 5 Bay Vista Commons 72 District 7 Bay Vista South 68 District 7 Bay Vista West 69 District 7 Frances Haddon Morgan Center Replacement Housing II and Chico Passage Duplex 4 District 7 Nollwood 48 District 7 Summit at Bay Vista 83 District 7 The Firs 60 District 7 1,437 Source: 2015 Department of Commerce Subsidized Housing Needs Study August 2, 2018 cg -123- 21300 322 Bremerton households Homeless children counted needed housing ❑ ❑ by Bremerton School District assistance in 2017 in school year'16-'17 1.•.;st� ,cl_it cs �e'rEN' literally homeless 408 983 households People without a home counted in a 24-hour c were households with children period in Bremerton during the 696 (1,295 children total) 2018 Point -in -Time Count ryD have been homeless for Causes of Homelessness 29 �0 1 year or longer Job Lass/unable to work 40°,'6 of households were below Familyconfrct �NWi 81% Federal Poverty Level Mental Illness 30°x, average monthly income for Eviction+Lass of housing 27% $719 households seeking housing assistance at the HSC Physical health)disability 22% Kitsap Rents Outpacing Wages Rents Rising Each Year iYflnlUrh Mg � $572 Rent Affordable at Minimum Wage Mean Renter Wage EIM $621 Rent Affordabte at Mean Renter Wage $1,323 Housing Wage for Zero Bedroom � 5659 FMR t' Average rent per unit in One Wage for ne Bedroom � $603 FMR Kitsap County Q4 2017. Housing Wage for Two Bedroom 51039 FMR Housing Mage for Three Bedroom Increased 11% from 2016, and 47% since 2014. Kitsap County Department of Human Services Jewell. Program Manager ��'}}/'� qq Q1C7��yy ?._:7 �ge'w6llg� kitsap,wa.us 6/G Cast Burden Cast -Burdened Renter Households 5,000 4,545 4,500 4,110 4,145 4,000 3,500 0 3,000 2,500 2,000 � 1,500 imoo 695 500 380 0' 0.30% 30-50% 5(1-80% 80-100% 5100% Percent of Median Family Income Severely cost -burdened Cost -burdened miter households renter households 2015 Washington State housing Needs Assessment: Kitaap County Cost -Burdened Homeowner Households 100.0% 8,000 2,254 72,7% 7,000 7,1057 5.6% 2 16 0.596 6,000 c 5,000 4,370 F 4,000 3,004 2,700 2,845 2,835 c w 2,000 1,000 0 0-30% 30-50% 50-80% 80-100% X100% Percent of Median Family Income Severely cwt -burdened Cost -burdened homeowner houselwWr, hanwo nner houmholds Subsidized Housing In ven tory Subsidized Housing Urlits, Including Those That Are Scheduled to Ex,oii P i)y 2017 • • 25 or fewer units r Suhrid&,-d unit e ■ 2650 Expiring Section 8 or 0 1 51-100 Section 515 unit 0 101-150 i 151 or more units Subsidized Inventory Chatacterisbcs Sites: 91 Units: 4,272 Section S/Section 515 units set to expire by 2017: 867 Are There Enough Subsidized Units for Eligible Renter Households at Different Income Thresholds? 0%-30% 6,095 30%-50% 5,500 50%-80% 8,040 80%-100% 3,895 Income eligibility was not available for all units in the inventory Affordable Housing Advisory Rveird -- 2015 Icor+sing Needs As.sessiticut 3,099 100.0% 51 2,254 72,7% 41 174 5.6% 2 16 0.596 0 www. commerce. wa.gav/housiisgneeds LL O 'F- ( O U LU W 2 U Q 'W ( I W w w LU 1 Z W U w W Z w LU F— ru �41 P4, 0 J M� co W ti 4- V o� Q � O i ; y z z V S V � ; Q y +- O a O y a z a s c _ S�L Q y d H Q pQ) zL S Q) Z 4- a E Z s O W o V S y V � o S 0 O `0 -Z S y a a O Q1 N rn aJ X c > aj a) v a, a v C v O O E aJ v 0 w o n 4- H N pl c � c O O O v �tArz E W" rz E -a c c c rz c rz Y rz >` al O Erz rz rz c > Fm r c N o > c O c "J o a .0 rz EN o Qj aj v to � O > rz O V rz a o t aj 'v O i � rz O a) LL Qj V c a Ln O M i V } s v rQj y > 4- Z ac O , v rz v 0. 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N D1 Ci © a m 4.1 x u _ W4.1 '1 '- aJ 0 0 W 4� O W = Z3 I'� V V1 U '^ C US a W H tA L N +�.+ 0 Q Q W L +1 �- �, > m yr -❑ a v rs - as CZ L > a � L Q +,I - a �, J vs _ a '0 007 aW vi F- 0 N S1 -G 4 Q I W r+ al Homelessness & housing toolkit for cities Tools and resources to address homelessness and affordable housing from real cases in cities Homelessness & housing toolkit for cities Tools and resources to address homelessness and affordable housing from real cases in cities across Washington. 40 Am P ., lr ASSOCIATION OF WASHINGTON Ci i iES ;5MRSC �aSSOCIIAT'IOIN OF W4$HIINGTON C II TA E S Copyright © 2017 by Association of Washington Cities and Municipal Research & Services Center All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the Association of Washington Cities or Municipal Research & Services Center. AWC's mission is to serve our members through advocacy, education and services. Association of Washington Cities, Inc. 1076 Franklin St. SE, Olympia, WA 98501 360.753.4137 1.800.562.8981 www.awcnet.org MRSC's mission is to support effective local government in Washington through trusted consultation, research, training, and collaboration. Municipal Research & Services Center 2601 Fourth Avenue, Suite 800 Seattle, WA 98121-1280 206.625.1300 www.mrsc.org Table of contents Introduction City resources for addressing homelessness and affordable housing.........................................................................1 Funding Homelessness and affordable housing fundsexplained...............................................................................3 Homelessness Compass Crossing tests low cost, modular microunits........................................................................................5 Emergency rental assistance programs: A strategy for preventing homelessness ................................ 7 Long-term "master leasing" helps provide homeless housing..........................................................................8 The Housing First model..............................................................9 Tiny house villages: Quixote Village and EmeraldVillage..............................................................................11 Local governments'winter shelter programs.....................13 Affordable housing Revising city regulations to encourage accessory dwelling units............................................................15 A Regional Coalition for Housing (ARCH): 15 cities and a county working together .............................17 City of Bellingham housing levy.............................................18 Community Land Trusts.............................................................19 Inclusionary zoning: Mandatory programs .........................20 Multifamily tax exemption: An incentive to help create affordable housing..........................................22 "Tiny homes" as permanent housing — Zoning and code limitations....................................................23 Tenant protections Rental housing inspection programs....................................26 Vancouver's tenant protection ordinances .........................27 Innovative collaboration Addressing chronic homelessness in Everett with CHART & Housing First......................................................28 Lakewood nonprofits & government tackle affordability and homelessness together ............................29 Wenatchee coordinates homeless programs for two counties............................................................................31 ntroduction City resources for addressing homelessness and affordable housing Cities of every size are grappling with increasing homelessness, lack of affordable housing for low-wage workers and their families, and inadequate mental health and addiction treatment systems. After many years of decline, homelessness in Washington is growing again, despite significant investment and efforts to reduce it over the last decade. Some communities face rapidly increasing housing costs that are pricing working families out of cities. When markets in larger urban communities are red hot, there is powerful pressure for existing affordable units to renovate and raise rents. Less urbanized areas of the state face very low vacancy rates and soft development economies, where new construction is not occurring at the pace needed to meet demand and accommodate growth. Our inadequate mental health care and chemical dependency treatment systems compound the problem. Washington ranks 46th in the nation in the number of psychiatric beds available for those suffering from mental illness, and our emergency rooms are overwhelmed by the number of people who need help. Opioid overdoses are now the leading cause of accidental death in the U.S. with 47,055 deaths in 2014. Both methamphetamine and opioid addiction are driving this epidemic of addiction, which does not discriminate when it comes to race, sex, geography, or income level. People with chemical dependency and mental health problems are significantly more likely to be homeless and homelessness is likely to accelerate their downward spiral, adding isolation, trauma, and premature aging to their list of disabling conditions. Solving these problems fall to a varied group of federal and state agencies, local governments, and nonprofit partners. The cost of homelessness to taxpayers is significant: increased police calls for service, incarceration, emergency room visits, and locally -funded homeless services strain local budgets. Cities struggle with limited resources and, often, funding for homelessness and housing does not flow directly to cities. After many years of decline, homelessness in Washington is growing again and housing affordability continues to be a challenge across the income spectrum. Cities need a variety of strategies to address these crises There is no single solution to these problems and cities need a variety of strategies to address these crises. This toolkit is meant to serve as a resource for elected officials and city staff who seek options and ideas on how to respond. The following pages offer descriptions of a variety of tools and programs. For each article you will find a brief description of the topic and information on where to access additional resources. Cities are on the front lines of our public policy issues but, as the programs in this toolkit show, cities can't solve it alone. Reducing homelessness and increasing affordable housing requires a sustained, innovative approach and a willingness to partner with county, state, and federal agencies, and as well as local faith communities, nonprofits, and ordinary citizens. None of these programs are one -size - fits -all solutions, but the following pages will offer ideas and inspiration so cities can continue meeting the challenges of an ever-changing world. Funding 0 Homelessness and affordable housing funds explained State authorized sales tax to support affordable housing and related services In July 2015, the legislature approved HB 2263 which provides local governments a tool to obtain funding to house vulnerable residents by implementing a one-tenth of one percent sales tax. County legislative authorities may implement a 0.1 percent sales and use tax, if approved by a majority of voters, in order to fund housing and related services. A city legislative authority may implement the whole or remainder of the tax if it's approved by a majority of voters and the county has not opted to implement the full tax. This new revenue stream is meant to serve people living with incomes at 60 percent or below of a given county's area median income (AMI).The majority of the funding (at least 60 percent) is designated for building new affordable housing and facilities to deliver mental health services and/or, the operation and maintenance of newly -constructed affordable housing or mental health services. The remainder of the funds can be used for the operation, delivery and evaluation of mental health programs or housing -related services. Mental Illness and Drug Dependency Tax The Mental Illness and Drug Dependency Tax (MIDD) allows counties to impose a sales and use tax of one- tenth of one percent to fund programs serving people with mental illness or chemical dependencies. Since 2011, any city with a population greater than 30,000 has the authority to implement the MIDD tax if it has not been passed by the county. Programs and services that can be funded by this revenue stream include, but are not limited to, treatment services, case management, and housing that are a component of a coordinated chemical dependency or mental health treatment program or service. Low Income Housing Tax Credit The Low Income Housing Tax Credit (LIHTC) is a federal tax credit program created in 1986 to provide private owners an incentive to create and maintain affordable housing.The IRS allocates program funds on a per capita basis to each state. The Washington State Housing Finance Commission (HFC) administers the tax credits as a source of funding that housing developers use for a single project. Investors in housing projects can apply to the HFC for different tax credits depending on project type. 3 The Housing Choice Voucher The Housing Choice Voucher (HCV) program is a federal housing voucher for very low-income families, the elderly, and the disabled to afford housing in the private market. Participants are free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. Housing choice vouchers are administered locally by public housing authorities. Housing authorities receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program. Usually, a housing subsidy is paid to the landlord directly by the housing authority on behalf of the participating family. The individual or family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Community Development Block Grants Started in 1974, the Community Development Block Grant (CDBG) program is one of HUD's longest running programs and provides annual grants to local government and states for a wide range of community needs. The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. CDBG appropriations are allocated between states and local jurisdictions called "non -entitlement" and "entitlement" communities. Entitlement communities are comprised of central cities of Metropolitan Statistical Areas, metropolitan cities with populations of at least 50,000, and qualified urban counties with a population of 200,000 or more (excluding the populations of entitlement cities). States distribute CDBG funds to non -entitlement localities not qualified as entitlement communities. HOME Investment and Partnership Program The HOME Investment Partnerships Program (HOME) is similar to CDBG, except that the funds are for the sole use of providing affordable housing for low and very low income individuals. Funding is allocated to states or participating jurisdictions. Funds can be used for building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. The program is flexible and allows states and local governments to these funds for grants, direct loans, loan guarantees or other forms of credit enhancements, or rental assistance or security deposits. Washington State Housing Trust Fund The Washington State Department of Commerce administers a Housing Trust Fund (HTF) funded primarily through the capital budget. Since 1987, the HTF has contributed over $1 billion toward the construction and maintenance of over 40,000 affordable homes. HTF dollars support a wide range of projects serving a diverse array of low-income populations. Projects can serve people with incomes up to 80 percent of area median income, but the majority of projects funded to date serve households with special needs or incomes below 30 percent area median income, including homeless families, seniors, farmworkers, and people with developmental disabilities. Local governments can apply to the HTF for eligible activities. 4 Document recording fees Document recording fees are Washington State's largest source of funding for homelessness programs. Counties charge fees on recorded documents and are permitted to retain a portion for affordable housing and homeless programs. Counties generally include cities in committees in determining how to spend the local share of the collected fees. Another portion of these funds are redirected to the Department of Commerce to fund various programs, including the Consolidated Homeless Grant program. Homelessness Compass Crossing tests low cost, modular micro units A project in Seattle is combining a Housing First program model and elements of the Olympia/Thurston County tiny house village model. Compass Housing Alliance (CHA) brought these ideas together in a project recently given a $1 million boost from the Paul G. Allen Foundation. The project, known as Compass Crossing, will feature a "progressive engagement model of trauma -informed care"for the residents'anticipated physical and mental health conditions and/or chemical dependencies. This will include onsite clinical staff, social service support, and property management. Compass Crossing combines this comprehensive program model with safe, affordable, steel -frame modular living spaces and communal facilities such as a kitchen, community space, and garden. These unique and intriguing attributes make the project both responsive to residents' needs and less costly than conventional construction. Rather than conform to the traditional definitions of permanent, transitional, or emergency housing, Compass Crossing intends to "promote a new model of 'Responsive Housing and Services'that can be adapted to the specific needs of the people we serve, wherever they are on their journey from homelessness.' Compass Crossing expects to help 50 individuals find stability over the expected three-year occupancy at the site. The development will include 13 housing units, including six 240 -square - foot double occupancy rooms and seven 160 -square -foot single occupancy rooms. Compass Crossing will be pet -friendly, include storage for the residents, and provide options for partners to be housed together. By utilizing steel -frame modular construction from OneBuild, an experienced supplier of off-site manufactured building modules and components for the construction industry, the project is expected to be faster and cheaper to build and use fewer resources than traditional on-site construction. The estimated timeline is ten weeks for site work and five days to install the buildings and connect utilities. The target date for completion was December 2016. The modular units will become a permanent affordable asset that can be moved from one under-utilized site to another as development occurs. 5 Compared to the number of homeless reported in the point -in -time count last winter, these 13 units alone may seem a meager start. But the key factor that garnered the support of the Allen Foundation was the potential for scalability, up or down. Both CHA's Chief Operating Officer, Bill Reddy and OneBuild's Founder and CEO, Dale Sperling, emphasized that this is a "proof of concept" project, and that the Allen Foundation was particularly interested in the fact that units are designed for eventual relocation and can be reconfigured, depending on the size and attributes of other potential sites. According to Sperling, the modularity of these units, together with their low cost, make them ideal to rapidly and cost-effectively respond to the homelessness crisis. Roughly ten of these units can be produced for the cost of a single conventionally built unit. According to Sperling, each of these modules can be built for around $30,000 compared to $300,000 to $400,000 each for a site -built apartment unit. The modular construction also reduces the site development costs. The total development cost per unit is much higher than the cost of the unit itself, skewing this comparison. Although the steel -frame modular units may share some outward resemblance to a shipping container, they are not recycled shipping containers. Each module is factory -built from new materials to be fully code compliant as a residential unit. They are transported to the site and rapidly lifted into place. In fact, OneBuild recently assembled a 49 -unit apartment building near MRSC's offices in Seattle's Belltown neighborhood in about 36 hours. CHA and OneBuild believe this project will show how any community of any size or shape can adapt this type of construction to meet the needs of people who are homeless. For a community facing a crisis in homelessness or housing affordability, this demonstration project may provide a new option. For rapid deployment, lower cost, extreme flexibility, reusability, and scalability, steel -frame modular construction is gaining an opportunity for a real-world demonstration thanks to the energy and commitment of the Compass Housing Authority, OneBuild, and the Paul G. Allen Foundation. R Resources Compass Crossing www.compasshousingalliance.org OneBuild, Dale Sperling www.onebuildinc.com Homelessness Emergency rental assistance programs: A strategy for preventing homelessness Emergency rental assistance prevents homelessness and helps residents avert eviction. In addition to providing funds to address their immediate housing crisis, such programs also provide other support services to promote long term stability. Typically, these programs provide short-term (one to three months) or medium-term (up to six months) rental assistance for households with incomes up to 50 percent of Area Median Income (AMI), who are at imminent risk of homelessness or who have recently become homeless. Individuals and families fall into housing crises and seek assistance for many reasons. Some of the most common are job loss, an unforeseen reduction in work hours, a medical emergency or disabling condition, limited income coupled with a rent increase, or the cessation of refugee resettlement assistance. Rental assistance funds are used for immediate help with current or late rent, utility arrears, and legal or interpretation fees needed to stop an eviction action. Funds may also be used for credit and background checks needed to secure alternate stable housing, as well as security and utility deposits and moving costs. In addition to receiving financial assistance, program participants may receive or be required to participate in services such as landlord negotiations, job search assistance, money management coaching, and help with goal setting. Seattle has provided funding for its Homelessness Prevention Program with money raised with its Housing Levy authorized by RCW 84.52.105 and passed by the voters in 2009. Other communities appear to rely almost exclusively on the nonprofit sector. 7 Resources Rental Assistance - Housing www.seattle.gov Homelessness and Family Stability - Bill & Melinda Gates Foundation www.gatesfoundation.org ARCH Housing - Other rental resources www.archhousing.org Prevention and Diversion Toolkit www.endhomelessness.org Spokane County Homeless Prevention www.snapwa.org Homelessness Long-term "master leasing" helps provide homeless housing Established in 1998, San Francisco's Master Leasing Program acquires sites, mainly single occupancy hotels, under long-term leases with building owners to provide housing for people who are homeless. The building owner retains responsibility only for large capital improvements after the lease is signed. The sites are managed by nonprofit organizations that provide property management and supportive services on site. Building owners often renovate residential and common areas prior to lease signing. While many nonprofits have adopted similar master leasing programs, only a few cities throughout the country have. San Francisco's successful program signs long-term leases with owners to provide permanent supportive housing for homeless adults. Its program is a Housing First model; that is, it provides housing immediately to homeless people regardless of their mental health or substance abuse status. This approach is based on the idea that in order for people to achieve stability and recovery, they must first have a safe, stable home and access to the mental health, addiction treatment, and other services they need. Most agree that it is very difficult to address a mental health or chemical dependency issue while sleeping on the street. (See also The Housing First model on p. 9) The benefits of master leasing are the ability to bring units online rapidly, and the reliance on private capital for upfront renovation costs. In addition, the renovated buildings, combined with on-site services, stabilize properties that have often been problematic for the surrounding neighborhood. San Francisco funds this program through its general fund and Human Services Care Fund. In fiscal year 2013-14 the fund had a budget of $14 million. E Resources City of San Francisco Department of Public Health, Housing and Urban Health www.sfdph.org Homelessness (D The Housing First model The central goal of the Housing First Generally, Housing First programs share While there are a wide variety of approach is to provide permanent, these elements: program models, all Housing First affordable housing. By providing A focus on helping individuals programs typically include: housing assistance, case management, and families access and sustain • Assessment -based targeting of and supportive services after an individual or family is housed, communities can significantly reduce the time people experience homelessness and prevent further episodes of homelessness. Housing First is an approach used for both homeless families and individuals, and for people who are chronically homeless. For the chronically homeless, this is also referred to as "low barrier" housing because typically there are no preconditions that the participant be clean and sober to obtain housing. Participants are housed with access to services such as mental health and addiction on-site or nearby, but are not required to use the services. The Housing First approach provides homeless people with housing quickly, without preconditions such as requiring that they become clean and sober first. permanent rental housing as quickly as possible; • A commitment to permanent rather than temporary or transitional housing; • Provision of social and health services following a housing placement; • Services are tailored to each individual's or family's needs; and Housing is not contingent on participation in services or treatment; the only requirement is that participants comply with a standard lease agreement, and services are intended to help them do so successfully. A central tenet of the Housing First approach is that social services enhance individual and family well- being are more effective when people are in their own home than when they are living with the extreme stress of homelessness. E Housing First services; • Assistance locating rental housing, relationship development with private market landlords, and lease negotiation; • Housing assistance ranging from security deposit and one month's rent to provision of a long-term housing subsidy; • A housing placement that is not time-limited; and • Case management to coordinate the services that follow a housing placement. The Housing First model has been shown to reduce public costs of homelessness such as use of emergency rooms, police services, courts and jails, and public sanitation. The federal Department of Housing and Urban Development estimates that each homeless person costs between $30,000 and $50,000 per year in such costs. The cost to provide permanent housing and support services to help people stay housed is approximately $20,000 per year. The stable living environment facilitates effective, and/or more cost effective Resources treatment than emergency rooms and Seattle's 1811 Eastlake project puts housing first incarceration. www.cartercenter.org Program models vary depending on TED talk by Dr. Sam Tsemberis, "Housing First: Ending Homelessness, the client population, the availability Transforming Lives, and Changing Communities" (2012) of affordable rental housing, and/or www.ted.org housing subsidies and services. Housing Housing First and Emergency Medical Services First programs often reflect the needs www.mhsa.net and preferences of each community, further contributing to the diversity of models. m Homelessness Tiny house villages: Quixote Village and Emerald Village Tiny house villages offer a lower-cost way to provide safe housing, and the benefits of community living and peer support for people recovering from homelessness. The term "tiny house"covers a wide range of structures and program models. Some are permanent structures with heat, plumbing, and other amenities that will last for many decades; others are less expensive, impermanent, and unheated and unplumbed. Village program models also vary. Quixote Village Located on a two -acre site in Olympia, Washington, Quixote Village consists of 30 cottages wrapped around a central open space, and a 2,640 square foot community building that includes a communal kitchen, dining and living room, showers, laundry facilities, and staff offices. The village provides permanent supportive housing for homeless adults, including people suffering from mental illness, people with physical disabilities, and people recovering from addiction. Financing for the program's development was provided by: • $1.5 million in the state capital budget, which came through the state Department of Commerce's Housing Trust Fund; • $699,000 from federal Community Development Block Grant funding that came through Thurston County and the City of Olympia; $170,000 in Thurston County funding from document recording fees; and • $215,000 in community donations, including the NisquallyTribe, the Chehalis Tribe, the Boeing Employees' Fund, and individual donors. The total cost of the village was just over $3 million or about $100,000 per unit. The village meets the state's green building code and all local building codes. The Village has two on-site, fulltime staff: a program manager and a social worker. Mental health services are also offered onsite. There is also a Resident Council, which helps govern the village and coordinates community holiday parties, barbecues and other events. Emerald Village Emerald Village in Eugene, Oregon, will represent a fresh approach to affordable housing. It will be a new and improved iteration of Opportunity Village, which has existed in Eugene, Oregon since 2013, and featured shed -type structures. Emerald Village will be a more sustainable place to transition to from less permanent shelter such as encampments or smaller shed -type structures. The vision for this next village is to provide permanent, low- cost housing for people with limited incomes. Funding to build the tiny house community is being raised through private donations and grants. Local architects and builders have gathered to form 13 teams, each donating their time and expertise to design and build one of the tiny homes at Emerald Village.Teams were limited to a 250 -square -foot footprint and $15,000 in materials (retail value). Other design parameters were kept to a minimum to demonstrate a variety of compact design and construction approaches. Each of the homes is being designed to meet the building code's definition of a"permanent dwelling"— including sleeping and living areas, a kitchenette, and bathroom contained within 160-288 square feet. The individual houses will be supported by common facilities that include a Resources community gathering area, kitchen, Quixote Village laundry, restroom, tool storage, and www.quixotevillage.com office. Residents will pay $250-350/month to live at Emerald Village, allowing the community to be financially self- sustaining once built.This provides a new, affordable housing option to someone with part-time work or fixed income. These are people who have been priced out of the housing market. Unlike most affordable housing projects, residents of Emerald Village will not simply be renters; they will be members of a housing cooperative with an ownership share of the village - enabling them to create a modest asset that can be cashed out, if and when they move out. Residents will also share responsibility for upkeep of the village, and will have a voice in shaping how their housing is operated and managed through a democratic process. By combining the benefits of cooperative housing with safe, livable, and cost-effective tiny houses, Emerald Village offers an accessible and sustainable response to our nation's current housing affordability crisis. Emerald Village Eugene www.squareonevillages.org Rendering of Emerald Village 12 Homelessness Local governments' winter shelter programs While local governments in Washington work to develop long-term solutions to homelessness, they must also respond to immediate threats to life and safety that arise when temperatures fall to freezing or below. Some communities have developed winter weather shelter programs to address this need. Winter weather shelter programs can take many forms, but they often involve a partnership with a local faith -based or other nonprofit organizations for the use of private facilities. While it is possible for a city or county to use its own facilities for this purpose, the logistical challenges — overnight staffing, meal preparation, scheduling of multipurpose facilities, insurance, and other similar issues — can make this option complicated to implement. Kent partners with local church The City of Kent partners with a local church to operate a cold weather shelter during specific, cold -weather events. Following a particularly cold winter in 2008-09, Kent community leaders and members of a local, faith -based organization developed a winter weather shelter program to provide temporary housing at a local church during severe, cold -weather events. Under the terms of the service agreement, the shelter can be activated by the city's Housing and Human Services Manager between the months of November and March when "temperatures fall below 32 degrees for 24 or more consecutive hours and/ or snow accumulation exceeding or expected to exceed three inches in depth and/or other conditions deemed severe enough to present a substantial threat to life or health of homeless persons" occur. 13 The city announces shelter activation by emailing community organizations, including the police, fire, and parks departments, local schools, and others, and by posting signs and posters at various community locations. AYouTube video, produced by the Kent Housing and Human Services Department, describes how the shelter program works. The program gives priority to homeless families with children (living on the street or in vehicles) but also provides space for single women and men.The shelter is open daily from 9 pm to 7 am while severe weather conditions exist. Shelter staffing is provided by church volunteers. The volunteers prepare the facility, greet guests, conduct safety screenings, prepare meals, and provide overnight supervision. To address security issues, the police department is notified when the shelter is activated and staff are instructed to call 911 if an emergency situation occurs. The church group also provides some staff trained to assist people in crisis. The church carries insurance coverage based on the terms of the service contract with the city. Multi -jurisdiction model serves King County's Eastside The cities of Bellevue, Redmond, Kirkland, Issaquah, and Sammamish collaborate to provide east King County with three "low barrier" (shelters with limited entry requirements are called "low -barrier") shelters: • Catholic Community Services (for families); • Sophia Way (for single women); and • Congregations for the Homeless (for single men). The City of Bellevue takes the lead in contracting with the shelter organizations and each of the participating cities pays a share of the cost. Under the terms of the contract, shelter services are provided during a fixed period (November—April) as opposed to being triggered by a particular, cold -weather event. Resources Catholic Community Services (families) www.ccsww.org Sophia Way (single women) www.sophiaway.org Congregations for the Homeless (single men) www.cfhomeless.org Kent's Severe Weather Shelter Operations Guide www.mrsc.org 14 Affordable housing Revising city regulations to encourage accessory dwelling units Accessory dwelling units (ADUs) have been around for decades. In many parts of Washington State, the concept is accepted and local governments have revised their regulations to accommodate such housing. Even so, the number of ADUs created in accordance with local standards has remained relatively low, due in part to the difficulty in meeting those regulations and the associated costs. In response, a few local governments are relooking at their standards and discussing how to make them easier to meet. The potential easing of existing ADU regulations, however, is causing neighborhood homeowners to take notice. What is an accessory dwelling unit (ADU)? An accessory dwelling unit (ADU) is a small, self-contained residential unit located on the same lot as an existing single-family home. They are sometimes referred to as "mother-in- law apartments." An ADU has all the basic facilities needed for day-to-day living independent of the main home, such as a kitchen, sleeping area, and a bathroom. There are two types of ADUs: 1. Attached ADU, which may be created as either: a. A separate unit within an existing home (such as in an attic or basement); or b. An addition to the home (such as a separate apartment unit with its own entrance). 2. Detached ADU, created in a separate structure on the lot (such as a converted garage or a new "backyard cottage"). Reasons for allowing ADUs State law (RCW 43.63A.215 and RCW 36.70A.400) requires that certain cities and counties adopt ordinances to encourage the development of ADUs in single-family zones, by incorporating the model ordinance recommendations prepared by the Washington Department of Commerce. In addition to just meeting a statutory mandate, however, ADUs have also helped local jurisdictions meet their Growth Management Act goals to encourage affordable housing and provide a variety of housing densities and types, while still preserving the character of single- family neighborhoods. From a planning perspective, it is considered by many to be a "kinder and gentler" method for accommodating population growth in a community, as compared to upzoning land to do so. 15 Standard ADU regulations Most local ADU regulations have standards to address the following issues: • Maximum unit size • Owner -occupancy • Dedicated off-street parking • Attached ADUs only • Maximum number of dwelling units on one lot • Separate entrances/Only one visible from the street • Other design standards (especially for detached ADUs) for such items as roof pitch, window style, and exterior material • Maximum number of occupants • Minimum lot size • Building code and other"life/safety" requirements M•. Communities starting to reconsider ADU requirements Some local governments in Washington State and elsewhere are reexamining their "standard"ADU requirements and questioning the rationale behind them, especially given the low production rate of new accessory dwelling units. As a result, some communities are considering changes to ADU regulations, such as: • Unit size: Most current ADU standards set a maximum size (for example, 800 square feet), but some communities are considering an increase to their limit to provide more flexibility. • On-site parking: Some local governments are looking at a reduction or elimination of standards requiring on-site parking spaces for the ADU's occupants, especially in areas where there is adequate on -street parking. Such a change may face stronger opposition in neighborhood where street parking is at a premium. • Detached ADUs: Most codes only allow attached ADUs, but more communities are expanding regulations to permit detached ADUs (which are usually required to be placed in the back half of a residential lot). Even if allowed, the high cost of constructing "backyard cottages" may limit the number that actually get built. • Owner -occupancy: Most codes require that the property owner needs to occupy either the primary or accessory unit, but some communities (such as Seattle) are considering removing this requirement. • Allowing more than two dwelling units: A "cutting edge" regulatory change is to increase the maximum number of dwelling units on a single family lot to three (by allowing one primary dwelling unit, one attached ADU, and one detached ADU). In Seattle, the City Council is currently considering proposed code revisions that would include an increase to three units on one lot. Discussion about these types of changes has caused anxiety for some homeowners, who are concerned about the impacts on neighborhood character and property values. On the other side are affordable housing advocates who consider changing existing regulations as a way to effectively increase the number of legal ADUs. Regardless of how local governments decide to regulate them, ADUs may be a viable approach to address a community's growth and affordable housing policies in a manner that is acceptable to residents (especially if they 0 consider the alternatives). Just be sure regulations and development review process aren't so burdensome that property owners end up not creating these dwelling units or building an ADU without obtaining the required permits. Resources Accessory Dwellings website www.accessorydwellings.org MRSC's Accessory Dwelling Units: Issues & Options publication www.mrsc.org MRSC's Accessory Dwelling Units and Affordable Housing webpages www.mrsc.org Affordable housing A Regional Coalition for Housing (ARCH): 15 cities and a county working together A Regional Coalition for Housing (ARCH) is a voluntary consortium of 15 cities in east King County and the county government itself. Originally created in 1992 following recommendations of a citizen's commission, ARCH provides a way for member cities to support and supplement internal city capacity for capital construction, and development and administration of regulatory and incentive programs for affordable housing. ARCH's administrative budget is funded by its member cities, partially but not entirely based on a per capita model. The board consists of the chief executive officers of member cities. ARCH does not replace internal local government staff, but provides a shared staff resource to assist in local housing activities. ARCH staff have played a supportive role for various city housing related efforts including preparing local planning documents such as Housing Elements, and developing specific initiatives such as accessory dwelling units, multifamily tax exemptions, and surplus land programs. ARCH staff also assist with administering local programs and provide staffing for community meetings. On the capital side, ARCH helps cities coordinate resources they allocate for affordable housing within the member cities. Cities are willing to co -fund projects through grants and loans with the long term goal of creating affordable housing throughout east King County that serve a range of needs. ARCH also provide ongoing monitoring of housing funded by cities. While a coalition like ARCH does not solve affordable housing problems by itself, it provides a good way to leverage resources and share specialized expertise. Resources A Regional Coalition for Housing (ARCH) Homepage www.archhousing.org 17 Affordable housing a Cityof Bellingham housing levy The Bellingham housing levy was approved by the voters in 2012, and imposes a tax of 36 cents per $1,000 of assessed property value, generating $21 million over seven years for the Bellingham Home Fund.The Bellingham Home Fund provides safe, affordable homes and supportive services to seniors on fixed incomes, people with disabilities, veterans, and low-income families. An Administrative and Financial Plan approved by the Bellingham City Council guides the use of the funds. In 1995, the Washington State Legislature enacted RCW 84.52.105, which authorizes cities, counties and towns to impose an additional regular property tax levy of up to 50 cents per $1,000 of assessed value of property for up to ten consecutive years. The ability to propose a levy under this statute requires a city, county or town to declare an emergency with respect to the availability of affordable housing. Rental and transitional housing The Bellingham Home Fund supports the development of new rental housing units for households that earn less than half the area's median income. Funds have been used for critical repairs, weatherization and accessibility. Homeownership Since 2002, the City of Bellingham has partnered with the Kulshan Community Land Trust and, more recently, with the Washington State Housing Finance Commission to help with down payment and closing costs for low income households. Since 1977, the city has offered financial assistance to low- income homeowners to repair their homes. In 2013, the Bellingham Home Fund allowed the city to support the Opportunity Council (a private, nonprofit Community Action Agency serving homeless and low-income families and individuals) expansion of its services to repair and weatherize owner -occupied manufactured homes. IN Rental assistance and services Bellingham allocates the Home Fund, federal HUD funds, and city funds to support housing and social services for low-income people in the community. These funds also support rent subsidies and emergency winter shelter. Some of the Home Fund's major initiatives include: • Homeless Outreach Team (Whatcom Homeless Service Center) • Intensive Case Management (Whatcom Alliance for Health Advancement) • Housing Services (Lydia Place, YWCA, Domestic Violence and Sexual Assault Services, Northwest Youth Services, Opportunity Council, and Catholic Community Services) Resources City of Bellingham, Affordable Housing Funding and Incentives www.cob.org Affordable housing a 0 Community Land Trusts Community Land Trusts (CLTs) are nonprofit organizations that provide affordable homeownership by placing land in a trust so that home buyers pay only for the cost of the structure. The CLT home buyers lease the land from the nonprofit for a modest fee. There are currently over 240 CLTs in 38 states. Thirty CLTs have been established in the Pacific Northwest, with 19 in Washington. CLTs have proven to be a very effective model in Seattle, Bellingham, Spokane, Portland, and other communities around the country. A CLT must have property in order to offer building sites, either in the form of land for construction or existing homes. Land acquisition may be from available public property, or purchased with funds from grants, special levies or donations. CLTs make home ownership more attainable for low-income families by removing the cost of land from the purchase. In a "hot" housing market, the increasing land value is a substantial part of the cost of a home; by removing that cost, the CLT is able to sell the homes at below-market rates. The housing remains permanently affordable by limiting equity gains, which preserves the home's affordability for future owners. In exchange for purchasing a home at well below market rate, CLT homeowners agree to a limit on the amount of equity they can realize if they sell the home in the future. An agreed-upon formula caps their equity growth at a reasonable rate. Even if property values in the area skyrocket, the home remains comparatively affordable forever. CLT homeowners may still build equity, within the agreed limits, and use that equity to move up the economic ladder. A CLT balances the multiple goals of asset -building for low- and moderate - income households, preservation of affordability over time, and the protection of neighborhood vitality. CLTs have an established track record of very low default rates. In 2008, CLTs had a foreclosure rate of 0.52 percent nationally, compared to over 3.3 percent for conventional homebuyers. Often, a portion of CLT board seats are reserved for homeowners. In the Spokane CLT, for example, homeownership includes membership in the organization. One-third of the board of directors are homeowners, joining local housing advocates, city officials, and other interested community members. IM CLT homeowners may make further improvements to their houses just as any homeowner would. Homeowners reap all the tax benefits of homeownership and can leave the home to their heirs or anyone else they designate. Community Land Trust homes may include both discrete developments in a neighborhood and scattered site programs where homeowners find a home they wish to purchase, and the property is brought into the CLT as part of the purchase process. Resources Welcome — Homestead CLT — Seattle www.homesteadclt.org Kulshan CLT — a community land trust — Bellingham www.kulshanclt.org Spokane Community Land Trust www.spokaneclt.weebly.com Northwest Community Land Trust Coalition www.nwcltc.org National Community Land Trust Network www.cltnetwork.org Affordable housing G Inclusionary zoning: Mandatory programs One method for addressing the affordable housing problem is a regulatory tool called "inclusionary zoning.' Inclusionary zoning requires affordable units to be included within new residential development projects, or payment for construction of such units elsewhere in the community. There are two basic types of inclusionary zoning: voluntary and mandatory. Under a voluntary program, it is up to the developer to decide whether or not to use various incentives or bonuses in exchange for providing a specified number of affordable units. However, such programs are not used very often, with developers usually opting to choose the simpler path of building only market -rate housing. Conversely, a mandatory program requires the construction of a minimum number of affordable units or an "in lieu of" payment. Communities with a mandatory program usually provide an additional density bonus if the number of affordable dwelling units goes beyond the mandated minimum.This article focuses primarily on mandatory programs. Who uses inclusionary zoning More than 500 cities in the U.S. use inclusionary zoning, including Boston, Denver, New Orleans, Portland, Sacramento, San Francisco, San Diego, and Washington D.C. In Washington State, there are a few cities that use inclusionary zoning, and more that are actively considering it. Successful examples in Washington State are Redmond and Federal Way. Redmond's affordable housing regulations, which have been in place since 1995, provide long-term affordable "contracts" on nearly 500 dwelling units.The City of Federal Way has also created a sizable amount of affordable units through its inclusionary zoning provisions. Elements of Inclusionary Zoning Mandatory inclusionary zoning regulations usually specify the following: • Minimum quantity of affordable units to be provided, which is usually a percentage of a development's total number of dwelling units. For example, Redmond requires a minimum of ten percent, while Sammamish has a sliding scale, based on the affordability level of the provided housing units. Developers in Sammamish are also using the city's affordable housing "bonus pool" to produce more market -rate and affordable dwelling units. • Targeted income range of households to be served by the affordable units. For instance, Redmond's target population is "those who make equal to or less 20 than 80 percent of the King County median household income adjusted for household size;'while Federal Way defines "rental affordable housing"as dwelling units affordable to those with incomes at or below 50 percent of King County's median income. • Time period within which the designated units must be maintained as affordable. For example, Issaquah requires those units to remain affordable for a minimum of 50 years. • Geographic scope of such regulations. Inclusionary zoning is usually limited to designated areas such as a downtown or mixed use development areas, although they may be applied throughout your community. For example, Redmond includes its downtown and seven other neighborhoods, while Issaquah's mandatory program is limited to the Central Issaquah Urban Core. On a practical note, a local government should ensure that the increased development capacity resulting from an upzone will offset the added costs to the housing developer of providing the affordable units. Otherwise, neither the market -rate nor affordable housing units will be built. Pros and cons of inclusionary zoning In an active housing market, inclusionary zoning results in the production of more affordable housing for low and moderate income residents. Inclusionary zoning can also result in buildings and neighborhoods that have a mix of income levels, without having to rely on taxpayer funds to provide them. On the "con" side, it may be difficult to administer an inclusionary zoning program and monitor that the designated dwelling units remain affordable. Also, this type of regulation sometimes raises peoples'concern about a change in community character. Finally, if your local housing market is not strong enough, developers may opt not to build any residential housing, which might then exacerbate the affordable housing issue. Legal basis for inclusionary zoning State law (RCW 36.70A.540) provides authority for GMA cities and counties to establish mandatory requirements for the inclusion of affordable housing under certain circumstances. That statute allows a GMA city or county to require a minimum number of affordable housing units that must be provided by all residential developments in areas where the city or county decides to increase residential capacity. Before establishing such a requirement, a city or county must determine that such a zone change would further local growth management and housing policies. The pros and cons of inclusionary zoning should be carefully reviewed before implementing such a program. But, if your community has an affordable housing problem and strong demand for market -rate housing, it is a regulatory tool that should be considered. Resources The Ins and the Outs: A Policy Guide to Inclusionary and Bonus Housing Programs in Washington www.mrsc.org Inclusionary Housing - Creating and Maintaining Equitable Communities (Report) www.lincolninst.edu 21 Affordable housing Multifamily tax exemption: An incentive to help create affordable housing Washington cities with populations of 15,000 or more may establish a tax exemption program to stimulate the construction, rehabilitation, or conversion of existing structures to provide multifamily housing within city - designated areas, including affordable housing (see RCW 84.14). Cities in "buildable lands" counties under RCW 36.70A.215, and the largest city in a Growth Management Act (GMA) county where no city has 15,000 or more residents may also utilize the tax exemption program. When a project is approved under this program, the value of eligible multifamily housing improvements is exempted from property taxes for eight or 12 years. Land, existing improvements, and non-residential improvements are not exempt. Only projects with four or more units are eligible for either the eight or 12 - year exemption. The eight-year tax exemption applies to market -rate housing, and the 12 -year tax abatement is available if 20 percent of the project's units are affordable to families earning up to 115% of the area median income. Only property owners who commit to renting or selling at least 20 percent Resources of units as affordable housing for low Bellevue Multifamily Property and moderate income households are Tax Exemption eligible for a 12 -year exemption. The property must satisfy that commitment, and any additional affordability and income eligibility conditions adopted by the local government under this chapter. If the property use changes before the applicable exemption ends, back taxes are recovered based on the difference between the taxes paid and the taxes that would have been paid without the tax exemption. Several cities have adopted multifamily property tax exemption ordinances including Auburn, Bellevue, Everett, Renton, Spokane, Seattle, Bremerton, Wenatchee, Bellingham, Shoreline, Kent, Tacoma, Vancouver, and Lynnwood. The Seattle Multifamily Tax Exemption program is applicable to new multifamily buildings that set aside 20- 25 percent of the homes as income- and rent -restricted for 12 years. Currently approximately 130 properties are participating and an additional 90 are expected to begin leasing units between 2016 and 2018. 22 www.bellevuewa.gov Bremerton Multifamily Property Tax Exemption Program www.ci.bremerton.wa.us Spokane Multiple Family Housing Property Tax Exemption Program www.spokanecity.org Wenatchee Tax Exemption for Multifamily Housing www.wenatcheewa.gov Affordable housing "Tiny homes" as permanent housing - zoning and code limitations "Tiny homes" are all the rage these days. But if they are so popular, then why don't we see more tiny homes in our communities? The simple answer is that zoning and building/construction regulations create significant barriers against them, especially if someone wants to live in a tiny home on a permanent basis. What is considered a "tiny home?" For the purpose of this article, "tiny home" is defined as a small dwelling (500 square feet or less), with a kitchen and bathroom, mounted on wheels, and able to be pulled by a vehicle. A tiny home is not a "very small house" built on-site or a traditional recreational vehicle (RV). But, distinctions start to get a little murkier as you dive into the details. Zoning Relevant state law and local regulations deal primarily with camper trailers and recreational vehicles (RV) that are used on a temporary basis, and not tiny homes on a chassis with wheels intended for permanent occupancy. Accordingly, most zoning codes treat such tiny homes as camper trailers or RVs, and usually allow them only for temporary, recreational use in campgrounds, RV parks, and occasionally in mobile home parks. If a local government wanted to allow permanent occupancy of "tiny homes" in residential zones as another housing option, it would be relatively straightforward (although not necessarily easy) to address the following issues within a community's zoning code. • Zones where allowed: Local governments will need to decide where it wishes to allow tiny homes, which may depend on how they are defined in the zoning code. They could be defined either generally as a "single family dwelling unit" or specifically as a "tiny home"with a specific set of standards applied to them. • Standards applied to tiny homes: If regulating tiny homes as single family dwelling units, then all the applicable zoning standards (such as density, minimum lot size, setbacks, and off-street parking requirements) should apply. If tiny homes are treated as a separate type of land use, then any exceptions to the previous sentence should be explicitly noted and included in your code. 23 • Minimum dwelling unit size/ occupancy: The International Residential Code (IRC) requires every dwelling unit to have "at least one habitable room that shall have not less than 120 square feet (11 m2) of gross floor area;' but this standard should not be a problem in most cases, because a majority of tiny homes are larger than 120 square feet. Although uncommon, some local zoning codes have a minimum square foot requirement or a residential occupancy standard (such as at least X square feet of living area/occupant). If that is the case, a jurisdiction may need to revise that standard or create an exemption for tiny homes. However, private covenants with minimum size/occupancy requirements cannot be changed through zoning regulations. • Accessory dwelling units (ADU): Some jurisdictions apparently are considering revising their codes to specifically allow a tiny house as an ADU. The City of Fresno, CA is one of the few cities that currently allows a tiny home to be used as an ADU. A major issue is that most of the zoning provisions discussed above, however, pertain to a tiny home being treated as a permanent dwelling unit. And, therein, lies the dilemma. Tiny homes as temporary housing vs. permanent dwelling units In Washington State, a tiny home with wheels and a chassis is actually called a Park Model Recreational Vehicle (PMRV) and is approved only for temporary/ recreational use. A tiny home/PMRV with its wheels taken off and mounted on a foundation will still be viewed as a PMRV and its use will still be considered as "temporary/recreational" (and not approved as a permanent dwelling unit). Exceptions in state law (RCW 35.21.684 and RCW 36.01.225), however, allow a PMRV to be used as a residence if it is located in a mobile home park, hooked up to utilities, and meets the other requirements of the applicable law. While some tiny home owners intend to use them only for temporary living purposes, others want to use them as permanent or long-term residences. In most cases, a tiny home/PMRV cannot be converted into a dwelling unit. The International Residential Code (IRC) addresses dwelling units and requires that"permanent provisions for living, sleeping, eating, cooking and sanitation" be provided in a dwelling, along with other requirements such as heating, mechanical and energy efficiency provisions. For example, PMRVs are only required to meet minimal insulation requirements for floors, walls, and ceilings. In contrast, dwellings are held to a much more efficient and higher standard for insulation, which also provides greater energy sustainability. For a tiny home to be approved as a dwelling unit: A person would need to submit engineered plans to the Factory Assembled Structure program of the Washington State Department of Labor and Industries (L&I) for the construction of a "Modular Building" (or to the local building department for a site -built tiny house). • Those plans would be reviewed under the specific Washington State Administrative Code (WAC 296-150F) for conformance with the requirements of the IRC. • Once approved, the builder would request inspections during the construction process until final approval had been obtained. • After final approval, the L&I inspector would attach the "Modular Gold Label Insignia"to the unit and a notice would be sent to the local building department, letting them know that the Factory Assembled Modular Unit is being transported to the intended end user site. 24 • Permits from the local building department would be required, and they would need to approve the foundation and installation of the tiny home. • The local jurisdiction will typically instruct the owner of the modular unit to provide design engineering for foundation and anchoring attachments from a licensed engineer or require a L&I-approved general design for attaching the tiny home structure to a permanent foundation. All utilities (water, sewer, and electric) for a permanent tiny home would need to be connected in the same manner as a typical single family house; use of extension cords and garden hoses would not be allowed. Tiny homes are likely to remain popular for many years to come. There are many barriers related to their use as a primary residence, both from a construction standards and zoning perspective. Current requirements make it difficult for tiny homes to become dwelling units, and all but impossible for the "do-it- yourselfer"to build a tiny home and live in it permanently. Resources American Tiny House Association's "Zoning" webpage www.americantinyhouseassociation.org Washington L&I's"Modular and Other Manufactured Structures website" www.Ini.wa.gov "Tiny Houses, and the Not -So -Tiny Questions They Raise" Report by Donald Elliott, FAICP, and Peter Sullivan, AICP, Zoning Practice, Vol. 32, No. 11 (November 2015) 25 Tenant protections 0 Rental housing inspection programs Several cities have adopted rental housing safety programs in an effort to ensure that rental units offered to tenants are safe. The rental housing safety program protects low income residents by requiring that property owners meet health and safety standards in order to rent out their units. RCW 59.18.125 was added to the state's Landlord Tenant Act (RCW 59.18) in 2010. The law authorizes a municipality to require certificates of inspection from landlords, and requires that cities adopting a rental inspection/licensing ordinance after June 10, 2010 follow the regulations provided in the statute. In 2007, before this law was adopted, the State Supreme Court upheld a City of Pasco ordinance that required landlords to be licensed by the city, make inspections of their rental units, and furnish the city with a certificate of inspection verifying that their units met applicable building codes. A key element in the court's decision in City of Pasco v. Shaw was that the Resources Lakewood Rental Housing Safety Program www.cityoflakewood.us Tacoma Municipal Code, Title 6, Ch. 66.165 www.cityoftacoma.org Tukwila Municipal Code, Ch. 5.06 inspections could be performed by a www.tukwilawa.gov private inspector of the property owner's choosing. This provision is also a feature of RCW 59.18.125. 26 Tenant protections 0 Vancouver's tenant protection ordinances In early 2015, the Vancouver City Council created the Affordable Housing Task Force to advise city policy makers on potential solutions to the problems of increased homelessness and the lack of affordable housing.The taskforce recommended a number of measures to protect vulnerable renters and increase the supply of affordable housing. At the time of the task force's creation, the city's vacancy rate was under two percent, down from nearly four percent in 2010. The task force noted that renters are having a difficult time securing housing due to the market's rapid price increases and low vacancy rates. As a result of the task force's work, the city enacted three ordinances to protect renters and promote housing stability: 45 -day Notice of Rent Increase - VMC 4.46 Any rental agreement for a residential unit in the City of Vancouver must include a provision that requires a 45 - day written notice to a tenant when their housing costs are increased by more than ten percent. Housing costs include the basic rent and any periodic fees paid to the landlord by the tenant, but do not include utility charges that are based on usage and that the tenant has agreed to pay in the rental agreement. 60 -day Notice to Vacate - VMC 8.47 An affirmative defense is created for tenants who are not provided a required 60 -day "no cause" eviction notice from a unit. This only applies to landlords who own five or more rental units. Other notices within the state's Residential Landlord Tenant Act (RCW 59.18) remain available to landlords, including the three-day notice to pay or vacate and the ten-day notice to comply with a rental agreement or vacate. Source of Income Protection - VMC 8.45 This ordinance prohibits landlords from refusing to rent to a tenant based solely on the source of that tenant's income. Sources of income include but are not limited to income from Social Security, rental subsidies from state and federal sources, and nonprofit administered benefit programs. 27 Resources City of Vancouver Affordable Housing Task Force www.cityofvancouver.us nnovative collaboration 0 Addressing chronic homelessness in Everett with CHART &Housing First Everett's Safe Streets Plan, which is being championed by Mayor Ray Stephanson, is focused on solving chronic homelessness through a coordinated effort among all the agencies and departments that deal with chronically homeless people every day. Some chronically homeless people with mental illness, addictions, and other disabilities are heavy users of emergency rooms, police services, and the criminal justice system — and they often cycle through these services and back onto the streets. To address this problem, many cities are exploring ways to divert people from this expensive and unproductive cycle. Everett created CHART (CHronic-Utilizer Alternative Response Team), a group consisting of criminal justice, emergency response, and research partners from the Everett Police Department, Everett Fire Department, Snohomish County Department of Human Services, Snohomish County Jail, Everett City Attorney's Office, and Providence Regional Medical Center Everett. A specialized CHART team is formed to problem -solve more permanent solutions — including housing — for people who are caught in this cycle. A customized team is convened to deal with each individual. Teams may include addiction treatment providers, public defenders, social workers, housing providers, and/or medical and mental health professionals. This strategy is expected to result in better outcomes for participants, and to reduce the impact and expense of "frequent fliers." Similar strategies have been successful in other communities. Inspired by a 2015 presentation on Utah's housing first policy, Mayor Stephanson has already announced Everett's first group of homeless individuals selected for housing. Together, they accounted for hundreds of contacts with first responders and the criminal justice system over the past two years. All suffer from mental health and substance -abuse disorders, and each has been homeless for extended periods of time. Resources City of Everett CHART webpage www.everettwa.gov Housing First - Housing First: Sam Tsemberis, TED Talk 28 nnovative collaboration 0 Lakewood nonprofits &government tackle affordability and homelessness together Pierce County's annual 2016 Point -in- In partnership with Greater Lakes Mental Habitat for Humanity fund construction Time Count revealed that there were Health, the city hired a mental health of new houses for low-income, first-time 1,762 people currently experiencing professional who is embedded with home buyers. To date, the organization homelessness in Pierce County. The police officers to serve as a resource for has built 21 units in the Tillicum number of people in shelters and on the streets had increased by 524 countywide since 2015. Individuals reporting either Lakewood or Tacoma/Lakewood as their location during the count made up six percent of the county's unsheltered population and 15 percent of those residing in shelters. The City of Lakewood adopted a multifaceted approach to addressing both housing affordability and homelessness in the community. One percent of the city's general fund is allocated to support human and social services annually, including housing assistance and housing relocation programs. The city has also tried other approaches that complement this budget allocation. those who are suffering from addiction or mental illness. A full-time officer now supports the Behavioral Health Contact Team (BHCT). Last year, they helped over 200 people by directing them to needed resources.These people would otherwise have been incarcerated or hospitalized. The city regularly shares their experience and knowledge gained through this program with other local cities interested in establishing similar programs for their communities. Lakewood also partners with multiple local organizations to address homelessness and mental health, including Living Access Support Alliance (LASA), Habitat for Humanity, Western State Hospital, and the Tacoma Methadone Clinic. The city contributed almost $1 million to LASA to support their new shelter, which opened in July 2015. In addition, the city helped 29 neighborhood and another 12 are scheduled for construction. Habitat is also looking to add additional properties to its Tillicum portfolio. The city is part of a consortium, called the Continuum of Care, with Pierce County and the City of Tacoma that qualifies for federal Community Development Block Grant dollars to support other programs to address homelessness countywide. Another example of collaboration with Pierce County is shared use of document recording fee revenue, which supports affordable housing and homelessness programs. Funding is distributed by an oversight committee composed of members from the City of Tacoma, City of Lakewood, Pierce County, and other city and town representatives. An interlocal agreement governs the operations of this committee. The Lakewood City Council adopted a Rental Housing Safety Program in 2016 in an effort to ensure the safety of city rental units. The Rental Housing Safety Program requires property owners to meet health and safety standards in order to rent out their units. (See more on Rental housing inspection programs on p. 26) The City of Lakewood estimates that low-income housing accounts for over 65 percent of homes within Lakewood, making the city a cost-effective location for Pierce County to place individuals who participate in rental assistance programs. Lakewood is also home to other low-income options including 28 mobile home parks (1,180 units) and 388 apartment complexes (11,200 units), the majority of which serve low-income residents. The city also hosts other low-income and transitional housing programs such as the Pierce County Housing Authority and units built using federal tax credits. Resources Pierce County Community Connections — Homeless Programs www.co.pierce.wa.us Access Point 4 Housing www.associatedministries.org Living Access Support Alliance www.lasawa.org 30 nnovative collaboration 0 Wenatchee coordinates homeless programs for two counties In 2006, Chelan County and Douglas County combined forces to reduce the prevalence of homelessness. They chose the City of Wenatchee to serve as the lead entity overseeing the development and administration of the counties' homeless plan. The city manages the local and state homeless and housing funds on behalf of Chelan and Douglas counties through an interlocal agreement.The city also manages funds distributed through the Department of Commerce's Consolidated Homeless Grant (CHG) and Emergency Solutions Grant (ESG). Wenatchee is not a provider of direct services, but instead sub -grants these funds out to local service providers. The City of Wenatchee administers the homeless programs in compliance with the grant requirements and coordinates services among providers. The city is assisted in its work by a Homeless Steering Committee and a Homeless Task Force. The steering committee assists with policy oversight and funding decisions, and is composed of representatives from local governments, community organizations, business groups, the media, and citizens. The task force is composed of homeless service providers and other interested parties who coordinate how services work in the counties. The city manages approximately $1 million in grant money annually. The steering committee has a cash flow reserve balance of $150,000 and an emergency reserve fund of $100,000. As a part of a recently updated five- year plan, the Chelan -Douglas County Program identified six priorities: 1. Focus on the chronically homeless; 2. Improve system responsiveness; 3. Increase the supply of and access to affordable housing; 4. Address youth homelessness; 5. Improve coordinated entry (a requirement that all counties have a single point of access for homeless services); and 6. Strengthen data collection. To achieve those priorities, the city is responsible for the following tasks: Promote the development of affordable housing through land use and zoning policies; • Preserve local rental stock through dedicated code compliance work; • Provide trainings for service providers on fair housing rights, wrap around services, and responding to behavioral health crises; and Provide periodic information and updates on system performance and utilization. 31 In order to measure progress, the five-year plan also included numerous performance measures such as reduction in the number chronically homeless individuals, reduction in the length of stay in emergency shelters, increase in the Wenatchee valley rental vacancy rate, and full Homeless Management Information System (HMIS) utilization by services providers. Resources Chelan -Douglas Plan to End Homelessness www.wenatcheewa.gov Association of Washington Cities 1076 Franklin St. SE Olympia, Washington 98501-1346 360.753.4137 or 1.800.562.8981 Municipal Research and Services Center 2601 Fourth Ave., Suite 800 Seattle, Washington 981 21-1 280 206.625.1300 or 1.800.933.6772 mrsc.org 4ki " Lev S . I'll' T. 45 (6� k) �aA2p, nfCs� }}-ovs� t�N� -M�szs CCP op 4ou5kNC, TWETM ORDINANCE NO. AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Chapter 3.78 of the Bremerton Municipal Code entitled "Multifamily Property Tax Exemption" to add provisions relating to affordable housing. WHEREAS, the City desires to encourage the development of affordable housing units in the City, and WHEREAS, the proposed revisions to Chapter 3.78 of the Bremerton Municipal Code entitled "Multifamily Property Tax Exemption" authorize the transfer of revenues received in sales tax for the construction of the projects utilizing the multi -family tax exemption to the Affordable Housing Capital Fund; and WHEREAS, on , 2018, the public was notified by a legal advertisement in the Kitsap Sun of the opportunity to make comment and participate in the public hearing by the City Council; and WHEREAS, on , 2018, the City Council conducted a public hearing and considered all testimony; NOW, THEREFORE; THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The recitals set forth above are hereby adopted and incorporated as set forth in full. SECTION2. A new section, Section 3.78.105 of the Bremerton Municipal Code entitled "Affordable Housing Capital Fund" is hereby adopted to read as follows: 3.78.105 AFFORDABLE HOUSING CAPITAL FUND If an application for the multi -family tax exemption is approved, the project has completed construction, and a certificate of occupancy has been issued as set forth in Section 3.78. 100 above, the Director of Financial services, or designee, shall transfer revenues received in sales tax for the construction of the project to the Affordable Housing Capital Fund. The Director shall determine the value of the sales tax revenues to be transferred to the fund based on the current sales tax rate for the construction and the estimated cost of construction based on the building permit application and other relevant information as the director deems appropriate. The funds shall be used for affordable housing projects approved by the City Council, unless the funds are otherwise allocated by the City Council. Multifamily Property Tax Exemption - Affordahle Housing Fund 2018 SECTION3. Severability. If anyone or more sections, subsections, or sentences of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 4. ELfective Date. This ordinance shall take effect and be in force ten (10) days from and after its passage, approval and publication as provided by lave. PASSED by the City Council the day of 2018. ERIC YOUNGER, Council President Approved this day of 2018. ATTEST: ANGELA WOODS, City Clerk PUBLISHED the day of EFFECTIVE the day of ORDINANCE NO. GREG WHEELER, Mayor APPROVED AS TO FORINT: ROGER A. LUBOVICH, City Attorney 2018. 2018. R:(Legalliegal\Ordinances\Community DevelopmentlMultifamily Property Tax Exemption Affordable Housing Fund - 2018.doc 2 Multifamily Property Tax Exemption Affordable Housing Fund 2018