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Home My WebLink AboutR-2013-048 Department of Ecology State Revolving Fund Loan for Wastewater Treatment Plant Capitol Improvement ProjectsRESOLUTION NO. R-2013-048 A RESOLUTION authorizing the City Manager to execute documents and agreements pursuant to a State Revolving Fund Loan offer from the Department of Ecology totaling $5,000,000 to fund capital improvement projects at the City's Wastewater Treatment Plant. WHEREAS, the City of Yakima (City) owns and operates wastewater collection and treatment facilities in accordance with applicable Federal, State and Local regulations; and WHEREAS, the City of Yakima has developed and adopted a plan for wastewater collection and treatment for the Yakima Regional Urban Area; such a plan being necessary to determine the needs of the area for health, safety and well being of the people; and WHEREAS, the plan was developed in accordance with the requirements of WAC 173-240; and WHEREAS, the plan identifies facilities and systems required to be constructed, improved and rehabilitated at the City of Yakima Wastewater Treatment Plant (WVVfP) that address present and future growth and mandated (regulatory and renewal/safety) requirements; and WHEREAS, the cost of engineering, design, and construction of the capital improvement projects at the WWTP are eligible for low interest loans from Washington Department of Ecology; and WHEREAS, a loan offer in the amount of $5,000,000 with an interest rate of 2.7%, attached hereto and incorporated herein by this reference, to fund Phase 3 of the City's Methane Utilization/Energy Conservation project at the WWTP, including the design and construction of a new biosolids facility and dryer, was received from the Department of Ecology; and WHEREAS, the loan amount was expected and has already been incorporated into the Wastewater Division's 2013 Budget; and WHEREAS, it is necessary that certain conditions be met as part of the application process, RCW 43.155.060 requires that the project will be advertised for competitive bids and administered according to standard local procedure; and WHEREAS, any loan arising from this application constitutes a debt to be repaid, and Ryan Anderson, Wastewater Division Utility Engineer has reviewed loan requirements and concluded that the City has the necessary capacity to repay the loan; and WHEREAS, the information in this application is true and correct to the best of the government's belief and knowledge and it is understood that the state may verify information, and that any untruthful or misleading information may be cause for rejection of this application or termination of any subsequent loan agreement(s); and WHEREAS, the City of Yakima certifies that it meets these requirements, and further that it intends to enter into a loan agreement with the Department of Ecology State Revolving Fund , provided that the terms and conditions for a State Revolving Fund agreement are satisfactory to all parties, Now, Therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute all applicable documents and agreements pursuant to a State Revolving Fund Loan Agreement from the Department of Ecology totaling $5,000,000 to fund capital improvement projects at the City's Wastewater Treatment Plant in accord with the attached and incorporated Department of Ecology State Revolving Fund Loan Agreement. ADOPTED BY THE CITY COUNCIL this 16th day of April, 2013 ATTEST. Sony .L aar Tee, City Cler Micah Caley, Mayor WASHINGTON STATE WATER POLLUTION CONTROL REVOLVING FUND • -LOAN AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF YAKIMA Table of Contents Page PART I. GENERAL INFORMATION 3 PART II. PROJECT SUMMARY 6 PART III. PROJECT BUDGET 6 PART IV. GOALS, OUTCOMES, AND POST PROJECT ASSESSMENT 7 PART V. SCOPE OF WORK 7 PART V(A). SPECIAL TERMS AND CONDITIONS 8 PART VI. LOAN INTEREST RATE AND TERMS 8 PART VII. ALL AGREEMENTS CONTAINED HEREIN 9 ATTACHMENT 1: OPINION OF RECIPIENT'S LEGAL COUNSEL 1 ATTACHMENT 2: AUTHORIZING ORDINANCE OR RESOLUTIONx 1 ATTACHMENT 3: PREAWARD COMPLIANCE REVIEW REPORT -FOR ALL APPLICANTS REQUESTING FEDERAL ASSISTANCE 1 ATTACHMENT 4: GENERAL PROJECT MANAGEMENT REQUIREMENTS FOR THE WASHINGTON STATE WATER POLLUTION CONTROL REVOLVING FUND 1 ACCOUNTING STANDARDS 1 ACTIVITIES PROJECTS: TECHNICAL ASSISTANCE 1 ACTIVITIES PROJECTS: BEST MANAGEMENT PRACTICES 1 AUTHORITY 1 CERTIFICATIONS 1 Page 1 CERTIFICATION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY EXCLUSION: 2 CLEAN WATER STATE REVOLVING FUND DATA REPORTING SHEET (DATA REPORTING SHEET) 2 COMMENCEMENT OF WORK 2 COVENANTS AND AGREEMENTS 3 CULTURAL AND HISTORIC RESOURCES PROTECTION 4 DISADVANTAGED BUSINESS ENTERPRISE (DBE) 5 EFFECTIVE DATE' 7 FACILITIES PROJECTS: DELIVERABLES (IF APPLICABLE) 7 FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) REPORTING REQUIREMENTS' 9 FORCE ACCOUNT 9 FUNDING RECOGNITION 9 GROWTH MANAGEMENT PLANNING 9 INCREASED OVERSIGHT (IF APPLICABLE) 10 INTERIM REFINANCE (IF APPLICABLE) 10 LOAN REPAYMENT 10 LOCAL LOAN FUND PROJECTS (IF APPLICABLE) 11 MODIFICATIONS TO AGREEMENT 12 PAYMENT REQUEST SUBMITTALS 12 POST PROJECT ASSESSMENT SURVEY 13 PREVAILING WAGE 13 PROCUREMENT 14 PROGRESS REPORTS 14 REPRESENTATIONS AND WARRANTIES 14 SEWER -USER ORDINANCES AND USER -CHARGE SYSTEM (IF APPLICABLE) 15 SMALL COMMERCIAL ON-SITE SEWAGE SYSTEM REPAIR AND REPLACEMENT (IF APPLICABLE) 15 TERMINATION AND DEFAULT; REMEDIES 16 WATER QUALITY MONITORING 18 ATTACHMENT 5: AGREEMENT DEFINITIONS 1 ATTACHMENT 6: LOAN GENERAL TERMS AND CONDITIONS PERTAINING TO GRANT AND LOAN AGREEMENTS OF THE DEPARTMENT OF ECOLOGY 1 ATTACHMENT 7: THE FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) & EPA DATA REPORTING SHEET (DATA REPORTING SHEET) 1 ATTACHMENT 8: ESTIMATED LOAN REPAYMENT SCHEDULE 2 Page 2 WASHINGTON STATE WATER POLLUTION CONTROL REVOLVING FUND LOAN AGREEMENT BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF YAKIMA FOR METHANE UTILIZATION /ENERGY CONSERVATION PHASE 3 THIS is a binding loan [LOAN] agreement entered into by and between the state of Washington Department of Ecology [DEPARTMENT] and City of Yakima [RECIPIENT]. The purpose of this LOAN agreement is to provide funds to the RECIPIENT to carry out the activities for the project [PROJECT] described in this LOAN agreement. This LOAN agreement consists of 10 pages and 8 attachments. Capitalized terms used, but not otherwise defined, in this LOAN agreement are defined in ATTACHMENT 5. PART I. GENERAL INFORMATION PROJECT Title: Methane Utilization/Energy Conservation Phase 3 PROJECT Period: Effective Date: January 2, 2013 Completion Date: December 31, 2014 LOAN Number(s): L1300018 Standard Interest LOAN Amount: $5,000,000 Interest Rate: 2.7% LOAN Term: 20 Years Forgivable Principal Amount: -0- Total LOAN Amount: $5,000,000 State Fiscal Year: 2013 RECIPIENT Information RECIPIENT Name: City of Yakima Mailing Address: 2220 East Viola; Yakima, WA 98901 FEDERAL TAXPAYER ID NUMBER: 91-6001293 Page 3 Data Universal Numbering System (DUNS) Number: PROJECT Contact: PROJECT Manager: Email Address: Phone Number: Fax Number: Address: DEPARTMENT Project Contact Information PROJECT Manager: Email Address: Phone Number: Fax Number: Address: PROJECT Engineer Financial Manager: Email Address: Phone Number: Fax Number: Address Funding Source(s) for This LOAN agreement: City of Yakima 078212651 Wastewater Division 032118486 Ryan Anderson Ryan Anderson rcanders@ci.yakima.wa.us (509) 249-6813 (509) 575-6116 City of Yakima 2220 East Viola, Yakima, WA 98901 Chris Coffin ccof461@ecy.wa.gov (509) 575-2821 (509) 575-2809 WA State Department of Ecology Central Regional Office 15 West Yakima Ave, Suite 200 Yakima, WA 98902-3452 Ian Laseke ilas461@ecy.Wa.gov (509) 457-7108 Bill Hashim bhas461(cr�,ecy.wa.gov (360) 407-6549 (360) 407-7151 WA State Department of Ecology Water Quality Program, FMS P.O. Box 47600 Olympia, WA 98504-7600 This LOAN agreement may be funded in part or in full with federal funds (Catalog of Federal Domestic Assistance Number 66.458) passed through to the RECIPEINT by the DEPARTMENT. As a "sub -recipient" of federal funds, OMB Circular A-133 contains certain requirements which may apply. Specifically, if the RECIPIENT or sub -recipient has expended a cumulative total (direct or pass through) of $500,000 or more in federal awards in a fiscal year, an audit may be required in accordance with OMB Circular A-133. If federal funds have been used to reimburse eligible costs incurred for this PROJECT as part of this LOAN agreement, the DEPARTMENT's fiscal office will provide Page 4 notification in January of each year that identifies the amount of federal funds that have been expended. (Federal funding for this AGREEMENT is provided from Capitalization Grants and state match for Clean Water State Revolving Funds; Environmental Protection Agency, Office of Water) Specific Funding Catagories: Loan for Green Project Reserves: ❑ Yes ® No Forgivable Principal Subsidy for Green Project Reserves Loan (Other) Amount: Forgivable Principal Subsidy Amount: State Centennial Loan Funds: ❑ Yes ® No GENERAL LOAN INFORMATION: Increased Oversight: ❑ Yes ® No Useful life of the PROJECT: 20 Years PROJECT TYPE: Check all that apply Facilities Project: ® Yes ❑ No Green Project Reserves: ❑ Yes ® No LOAN SECURITY: Check all that apply Does this LOAN agreement and the LOAN to the RECIPIENT: ® Yes ❑ No $5,000,000 ❑ Yes ® No ® Yes ❑ No ❑ Yes ® No Activities Project: ❑ Yes ® No Does this LOAN agreement and the LOAN to RECIPIENT or the state of Washington: ❑ Yes ® No be made constitute Revenue Secured Lien Obligation of be made constitute a general obligation debt of the Does this LOAN agreement and the LOAN to be made constitute a valid general obligation of the RECIPIENT payable from special assessments: ❑ Yes ® No Is this LOAN secured with dedicated revenue through a Tribal Governmental Enterprise: ❑ Yes ® No Page 5 IMPORTANT DATES: Estimated Project Start Date:' January 2, 2013 Estimated Initiation of Operation (I of 0): ® Yes ❑ No If yes, Date: November 1, 2014 Estimated Project Completion Date: December 31, 2014 Other Milestone or Target Dates: n Yes ® No Interim Refinance: ❑ Yes ® No If yes, Effective Date: Post Project Assessment Date (see ATTACHMENT 4): November 1, 2018 LOAN Agreement Effective Date: January 2, 2013 PART II. PROJECT SUMMARY This design and construction PROJECT will analyze methane gas generation to address existing and future onsite power needs. Utilizing methane gas production will reduce the need to augment fuel for boiler and dryer operations with diesel and natural gas, eliminate wasting of methane and ultimately reduce electrical consumption. This scope of work will accomplish the designing and construction of a new bio -solids dryer. This PROJECT is Phase 3 of RECIPIENT's overall energy efficiency retrofit of its wastewater treatment facility. PART III. PROJECT BUDGET Tas��r :� ;�.; � � : �� :: � ks<..�o a9 ` ,...: :._ "Cost:;;°'"»'PROJECT otal PROJECT:'' .�:�r ..�.q.. �f; • z.� ..�� : Total Eli `ible .. °:-.�..: �,, g.. ��` Cost f'„ , Total �Standa�rd; LViciujii 1. Project Administration and Management $0 $0 $0 2. Design and Install a Bio -solids Dryer $7,309,003 $7,309,003 $5,000,000 Total $7,309,003 $7,309,003 $5,000,000 1. The DEPARTMENT'S Fiscal Office will track to the total eligible Revolving Fund LOAN amount. However, the RECIPIENT cannot deviate among elements without DEPARTMENT approval. 2. Other Funding Sources: ® Yes (if Yes, list sources and amounts) ❑ No 2012 SRF Loan L1200019 - $2,810,840 Page 6 PART IV. GOALS, OUTCOMES, AND POST PROJECT ASSESSMENT (see Important Dates in Part I and Post Project Assessment in Attachment 4) A. Financial Assistance Water Quality Project Goals: One or more of the selected following goals apply to this project: B. ❑ Severe Public Health Hazard or Public Health Emergency eliminated. ® Designated beneficial uses will be restored or protected, 303(d) -Listed water bodies restored to water quality standards, and healthy waters prevented from being degraded. ❑ Regulatory compliance with a consent decree, compliance orders, TMDL or waste load allocation achieved. Water Quality and.Energy Efficiency Project Outcomes: The following are quantitative results anticipated from the project. a. Increase methane gas production between 10 and 20 percent. b. Reduce Class B bio -solids production at least by 1500 tons per year after the project construction is completed. c. Reduce minimum 1.4 million kilowatt hours of electrical consumption per year after the project construction is completed. C. Environmental Mitigation: ❑ Yes ® No If Yes, list the environmental mitigation measures: PART V. SCOPE OF WORK Task 1 - Project Administration/Management A. The RECIPIENT will administer the PROJECT. Responsibilities will include, but not be limited to: maintenance of PROJECT records; submittal of payment vouchers, fiscal forms, and progress reports; compliance with applicable procurement, contracting, and interlocal agreement requirements; attainment of all required permits, licenses, easements, or property rights necessary for the PROJECT; and submittal of required performance items. B. The RECIPIENT will manage the PROJECT. Efforts will include: conducting, coordinating, and scheduling project activities and assuring quality control. Every effort will be made to maintain effective communication with the RECIPIENT's designees; the DEPARTMENT; all affected local, state, or federal jurisdictions; and any interested individuals or groups. The RECIPIENT will carry out this PROJECT in accordance with any completion dates outlined in this LOAN agreement. Required Performance: 1. Effective administration and management of this PROJECT. 2. Timely submittal of all required performance items, progress reports, and financial vouchers. Page 7 Task 2: Design and install a bio -solids dryer A. The RECIPIENT will hire engineering services to plan, design, and install a new bio -solids dryer of capacity to reduce a minimum 8,500 tons of class B bio -solids to approximately 1,800 tons of Class A bio -solids. B. The RECIPIENT will develop preliminary conceptual design for the new bio -solids dryer and will finalize the conceptual design and develop cost estimates for equipment installation and O&M based on the agreed upon design criteria. C. After the conceptual design has been reviewed, the RECIPIENT will develop a detailed design that will include structural and mechanical designs for the bio -solids dryer. The RECIPIENT will incorporate mechanical designs with the electrical power and control systems integrated into the facilities data control systems. The RECIPIENT will develop design documents suitable for solicitation of bids. D. The RECIPIENT will submit the design to the DEPARTMENT for approval. E. The RECIPIENT will comply with federal cross cutting requirements, and assist the DEPARTMENT with any consultation required by federal resource protection agencies. The RECIPIENT will submit a final Cross Cutter Report to the DEPARTMENT for review and final determination of impacts for each of the required federal cross cutters. Costs incurred for construction activities that occur before federal cross cutter approval will not be eligible for reimbursement. F. The RECIPIENT will hire a contractor to construct and install bio -solids dryer and associated engineering services per the approved design and specifications. Required Performance: 1. The RECIPIENT will submit final design for the bio -solids dryer to the DEPARTMENT for approval. 2. Two copies of final Cross Cutter Report to DEPARTMENT's Project Manager for DEPARTMENT'S review and concurrence. 3. The RECIPIENT will construct and install new bio -solids dryer per the approved design and specification. PART V(a). SPECIAL TERMS AND CONDITIONS 1. The RECIPIENT will not proceed with any construction -related activities until all necessary plans and specifications are approved in writing by the DEPARTMENT. PART VI. LOAN INTEREST RATE AND TERMS Source and Availability; LOAN Amounts; LOAN Terms This LOAN agreement will remain in effect until the date of final repayment of the LOAN, unless terminated earlier according to the provisions herein. Page 8 Subject to all of the terms, provisions, and conditions of this LOAN agreement, and subject to the availability of funds, the DEPARTMENT will loan to the RECIPIENT the sum of five million dollars ($5,000,000). When the PROJECT Completion Date has occurred, the DEPARTMENT and the RECIPIENT will execute an amendment to this LOAN agreement which details the final LOAN amount (Final LOAN Amount), and the DEPARTMENT will prepare a final LOAN repayment schedule, in the form of ATTACHMENT. 8. The Final LOAN Amount will 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") will bear interest at the rate of 2.7 percent per annum, calculated on the basis of a 365 day year. Interest on the Estimated LOAN Amount will accrue from and be compounded monthly based on the date that each payment is mailed to the RECIPIENT. The Final LOAN Amount will be repaid in equal installments semiannually over a term of twenty (20) years, as provided in ATTACHMENT 8. PART VII. ALL AGREEMENTS CONTAINED HEREIN The RECIPIENT will ensure this PROJECT is completed according to the details of this LOAN agreement. The RECIPIENT may elect to use its own forces or it may contract for professional services necessary to perform and complete project -related work, if approved by the DEPARTMENT. Webpage addresses may be provided throughout this LOAN agreement for your convenience, however, if any of these addresses do not work, it is the responsibility of the RECIPIENT to contact the DEPARTMENT for the,,updated webpage address or the necessary information,' • The following contain the entire understanding between the parties, and there are no other understandings or representations other than as set forth, or incorporated by reference, herein: • This LOAN agreement • ATTACHMENT t: Opinion of RECIPIENT's Legal Counsel • ATTACHMENT 2: Authorizing Ordinance or Resolution • ATTACHMENT 3: Preaward Compliance Review Report for All Applicants Requesting Federal Assistance • ATTACHMENT 4: General Project Management Requirements • ATTACHMENT 5: Agreement Definitions • ATTACHMENT 6: LOAN General Terms and Conditions (Pertaining to Grant and Loan Agreements) of the Department of Ecology • ATTACHMENT 7: The Federal Funding Accountability and Transparency Act (FFATA) & The Clean Water State Revolving Fund Initial Data Reporting Sheet • ATTACHMENT 8: Estimated LOAN Repayment Schedule • The effective edition, at the signing of this LOAN agreement, of the DEPARTMENT'S "Administrative Requirements for Ecology Grants and Loans" • The associated funding guidelines that correspond to the Fiscal Year in which the project is funded • The applicable statutes and regulations Page 9 • As a subrecipient of federal funds (Catalogue of Federal Domestic Assistance Number 66.458) , the RECIPIENT must comply with the following federal regulations: OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations OMB Circular A-133, Compliance Supplement OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments OMB Circular A-102, Uniform Administrative Requirements No changes, additions, or deletions to this LOAN agreement will be authorized without a formal written amendment, EXCEPT that in response to a request from the RECIPIENT, the DEPARTMENT may redistribute the loan budget. The DEPARTMENT or the RECIPIENT may change their respective staff contacts without the concurrence of either party. By signing this LOAN agreement, the RECIPIENT acknowledges that opportunity to thoroughly review the terms of this LOAN agreement, the attachments, all incorporated or referenced documents, as well 'as all applicable statutes, rules, or guidelines mentioned in this LOAN agreement was given. IN WITNESS WHEREOF, the DEPARTMENT and the RECIPIENT have signed this LOAN agreement as of the dates set forth below, to be effective as provided above. STATE OF WASHINGTON CITY OF YAKIMA DEPARTMENT OF ECOLOGY &/ L �SEWIND, P.E., P.G. DATE T!'J'Rr RKE DATE WA ER QUALITY PROGRAM MANAGER CITY MAN • GER APPROVED AS TO FORM ONLY ASSISTANT ATTORNEY GENERAL (October 29, 2009) Boilerplate Update July 2, 2012 Page 10 CITY CONTRAC f N RESOLUTION NO l ATTACHMENT 1: OPINION OF RECIPIENT's LEGAL COUNSEL I am an attorney at law admitted to practice in the state of Washington and the duly appointed attorney for the City of Yakima [the RECIPIENT], and I have examined any and all documents and records _ pertinent to the LOAN agreement. Based on the foregoing, it is my opinion that: A. The RECIPIENT is a duly organized and legally existing municipal corporation or political subdivision under the laws of the state of Washington or a federally recognized Indian tribe; B. The RECIPIENT has the power and authority to execute and deliver and to perform its obligations under the LOAN agreement; C. The LOAN agreement has been duly authorized and executed by RECIPIENT's authorized representatives and, to my best knowledge and after reasonable investigation, all other necessary actions have been taken to make the LOAN agreement valid, binding, and enforceable against the RECIPIENT in accordance with its terms, except as such enforcement is affected by bankruptcy, insolvency, moratorium, or other laws affecting creditors' rights and principles of equity if equitable remedies are sought; D. To my best knowledge and after reasonable investigation, the LOAN agreement does not violate any other agreement, statute, court order, or law to which the RECIPIENT is a party or by which it or its properties are bound; E. There is currently no litigation seeking to enjoin the commencement or completion of the PROJECT or to enjoin the RECIPIENT from entering into the LOAN agreement or from accepting or repaying the LOAN. The RECIPIENT is not a party to litigation which will materially affect its ability to repay such LOAN on the terms contained in the LOAN agreement; and F. The LOAN agreement constitutes a valid obligation of the RECIPIENT payable from the Net Revenues of the Utility. Capitalized terms used herein will have the meanings ascribed thereto in the/LOAN agreement between the RECIPIENT and the DEPARTMENT. RECIP i(44/n/ 11//7'// 3 eg al Counsel Date Page 1 of ATTACHMENT 1 Page 2 of ATTACHMENT 1 ATTACHMENT 2: AUTHORIZING ORDINANCE OR RESOLUTION Page 1 of ATTACHMENT 2 Page 2 of ATTACHMENT 2 RESOLUTION NO. R-2013-048 A RESOLUTION authorizing the City Manager to execute documents and agreements pursuant to a State Revolving Fund Loan offer from the Department of Ecology totaling $5,000,000 to fund capital improvement projects at the City's Wastewater Treatment Plant. WHEREAS, the City of Yakima (City) owns and operates wastewater collection and treatment facilities in accordance with applicable Federal, State and Local regulations; and WHEREAS, the City of Yakima has developed and adopted a plan for wastewater collection and treatment for the Yakima Regional Urban Area; such a plan being necessary to determine the needs of the area for health, safety and well being of the people; and WHEREAS, the plan was developed in accordance with the requirements of WAC 173-240; and WHEREAS, the plan identifies facilities and systems required to be constructed, improved and rehabilitated at the City of Yakima Wastewater Treatment Plant (VVWTP) that address present and future growth and mandated (regulatory and renewal/safety) requirements; and WHEREAS, the cost of engineering, design, and construction of the capital improvement projects at the VWVTP are eligible for low interest loans from Washington Department of Ecology; and WHEREAS, a loan offer in the amount of $5,000,000 with an interest rate of 2.7%, attached hereto and incorporated herein by this reference, to fund Phase 3 of the City's Methane Utilization/Energy Conservation project at the WVVTP, including the design and construction of a new biosolids facility and dryer, was received from the Department of Ecology; and WHEREAS, the loan amount was expected and has already been incorporated into the Wastewater Division's 2013 Budget; and WHEREAS, it is necessary that certain conditions be met as part of the application process, RCW 43.155.060 requires that the project will be advertised for competitive bids and administered according to standard local procedure; and WHEREAS, any loan arising from this application constitutes a debt to be repaid, and Ryan Anderson, Wastewater Division Utility Engineer has reviewed loan requirements and concluded that the City has the necessary capacity to repay the loan; and WHEREAS, the information in this application is true and correct to the best of the government's belief and knowledge and it is understood that the state may verify information, and that any untruthful or misleading information may be cause for rejection of this application or termination of any subsequent loan agreement(s); and WHEREAS, the City of Yakima certifies that it meets these requirements, and further that it intends to enter into a loan agreement with the Department of Ecology State Revolving Fund , provided that the terms and conditions for a State Revolving Fund agreement are satisfactory to all parties, Now, Therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute all applicable documents and agreements pursuant to a State Revolving Fund Loan Agreement from the Department of Ecology totaling $5,000,000 to fund capital improvement projects at the City's Wastewater Treatment Plant in accord with the attached and incorporated Department of Ecology State Revolving Fund Loan Agreement. ADOPTED BY THE CITY COUNCIL this 16th day of April, 2013 ATTEST. Sony aar Tee, City Cler Micah Ca ey, Mayor FORM Approved By OMB: No. 2030-0020:Expires 6430-012 ATTACB NT 3: PREAwARD COMPLIANCE REVIEW RC FOR ALL APPLICANTS REQUESTING. FEDERAL ASSISTANCE Form available eleciropically httal/wWw.eba.aovioad/forrnstformahtrn Su r c • - , - - - — - - - , -7--- -- .••••• ,.....-', ... 7.'``fr . ...'w 4..41 .• . k '-'.... , ... ... . . ... . „ . .. . . .. . _ .. . . . ... . PrOavyaraco*Filia0e'.14-00w; Report for All Attplicant4-pd Recipients Requesting EPA Financial Assistance Note Read instructions on page -two Of this 'attaehrnent: . ! I. ApplicantigeciPient(Nkme. Address, State,,Zip.codo). - - . .,,C ;-• -, of YA' -k :,,, , .faq -)..c+.,.,..64. 54 .,„,.,. ,i,!? . I. .`l,',N 0 i ; DUNS No. 6-5,1?zi ' e xs' i IL ",..,, ., ; applicant OuiTenpy receiving EPA Iiis0:00e?,1 . ‘.57.e A."1-471k.O. ki 4 . , ... . . .. . ., .. . . . . . .... . III. List all did rightalawsnits.andadininistrative complaints pending againstlieapPliCant/reCipient.that allege diserintination !trisect riti'laea, color national' origin, sex, 'age, or diaability. '(Do not include employment complaints niat covered by 40 .b..F.R. Parts 7; :See'instinetions on reverse side.) ..- i -t-. &- • .. ' IV-. List all civil rights -lawsuits and administrative complaints decided against the-applicant/recipient within the -last year That allege diaciiniination i?Oecten,riceColiir,.patiOaal origin, sex, age, cr;;-itsatritity.and enclose a copy of all AeCialons. -pleaSe describe all cintectivo action taken (Do not include employment complaints not coveied"by 40 C.F.R. Parts 5 and 7. See bistructions,on reverse side,)' $..'e:- d',...17F,c.1-,si11 , . . V. List allcivil. rights compliance reviews ofthe applicant/recipient conducted byany agency within the last tivo years and enclose a copy of the review and any deeisidna, orders, or AGREEMENTS based on the review Please describe any corrective action taken ..(40 CF R. §1.S0(c)(3)) - Vi ..4:hczip.plicpiit-iirlOstAfig p).41*istat*.foii*Vcopstr4ticiO? If no, proceed tOVIlfif yes, answer (a) and/or (b) ,_. a. If the grant fornew construction, will all newfacilities.or alterations to existing facilities.be designed and constructed to -be readily accessible ta and,usable by persons with disabilities? If yes, proceed to VII;•ifnO,proeeed to 14(b).b.,If the grant is for new construction and the new facilities or alterations to existing -facilities will not'boreadily accessible -to -and usable.by.persons viith.disabillties,,explainitOw a regulaitny,exception (40C:F:R. §.7.10) applies. . . VA* Does the applicant/recipient provide initial and notice that it does not discriminate Piavie-baSia of race, coler, national blight, Se*, age; or disabilityinits programs or,activitie(4O "c'.:lai...§ 5.146.and:§.1.95)_ a. Do the methods of noticeaccomrnodatethose with impaired vision or heating?'h.Is the notice posted a prominent placeIntheapplitant's offices or facilities or, for education programs and activities, in appropriate: periodicals and other written eommufileationa?"c. Does the notice identifY•a designated civil rights coordinator? .5,c_ e.,il--liz t.6./:..... .. Does applicant/recipient OainfAiri.4cippgraphie Oata 0146.0;0, color, national pithr4, sex,-oge, or 4010100.6f ON populationpopulationit serves? (40, .F.R. §7.85(a)) . . . . ... . . . . . . . . . S-6 e, A-=, e-4,.:1 . . . . . .. ..- „,.. . . . ... ,.. ......... • .,. ._ DODoestlie:aiplietint/recipient nave -6 policy/procedure for providing acceasto services for persons Withlinnted English proficiency? (40 C.P.R. • pi* 7,‘gg. 13166) X * If the applicant/recipient *an education.prograin or activity, or has 15 orMore'iniployeesilitislt designated an employee to its - compliance with 40 C.F.R. Parts 5 anal'it)rovidc the name, title, position,; mailing address, -e-mail address, fax number; and telephone number of the ' designated CoOttlinator. 97.c.-., . .. . . XI* If the.applicant/reeipietals an eduCaticinprograin or activity,,orhaS-15 of Mote ernployees,-has itadOpted grievance pracadores that assure the, . prompt -and fairresolution of complaints that allege a violation of 40 0.F.R.,Parts Sand 77-Provicie a ,legalcitation-or Internet address for, or a copy of, the procedures. .... .,. . , . For -the ApplicantiReelplent _Teen* thatthe'statementsi have made on:this form and allattachinentsthereto are triie,--aecurate end compete. t acknowledge that iriy, knowingly false or misleading statement may be punishable by.fine'Ofimprisonment or both under applicable law 'I assure that! willfully comply with all-applicable.ciVil rights statutes and EPA -regulations.. __,,L.,,,--..,;:-. A.:S' 'e of AuthorizedOfficial ., c?4,-..,t .,+. -, 't...r,:,-,- ., .,-.: 4 4 ? B ' ., title,of Authotized-Of6mal . . . . . c://2 /2...0)..j . c Dat . . .. ' For the U:S: gniirciritrientril-pititectinn AgeneY_IhaVereVieWed theinforrnatipti ptoVidedhy the appljeant/recip1pritati4 hefepYeetqfy.that,tho applicant/recipient has submitted -all preaward comPliance,information required by 40:0;F:it...Parts 5rand 7; -that based'on the -information stibmitted,,This application satisfies ,01q-13.**.r.ct#014100,s,!#40.0,11,1)44 5 and 7 and that the applicant has given assurance that it;*illfully,60#1Y** all ' applicahle.civii-rights,stittutei and EPA regulations. , , . .. . A.Signatare of Authorized -EPA Official See.** -note on, i'reVerse_slcle: .. .. . t i . 'illitie of Authorized'EPAbfficial. . .... . . C..Date Page 1. of ATTACHMENT -3 March 11, 2013 ATTACHMENT TO PREAWARD COMPLIANCE REVIEW REPORT FOR ALL APPLICANTS REQUESTING FEDERAL ASSISTANCE I. Applicant/Recipient Name, Address, State, Zip Code). DUNS No. t3t.2 (L `S City of Yakima 129 North Second Street Yakima, WA 98901-9505 II. Is the applicant currently receiving EPA assistance? City of Yakima Wastewater Division: Yes. From Ecology SRF and SRF-GPR Forgivable Principal loan L1100008 and Li 1 S00008 respectively (same contract). City of Yakima Water Division: Yes. Drinking Water State Revolving Fund DM11-952-038 III. List all civil rights lawsuits and administrative complaints pending against the applicant/recipient that allege discrimination based on race, color, national origin, sex, age, or disability. (Do not include employment complaints not covered by 40 C.F.R. Parts 5 and 7. See instructions on reverse side.) There are no such lawsuits or administrative complaints pending that involve either the City of Yakima Wastewater Division or the City of Yakima Water Division. The following Washington States Human Rights Commission complaint was filed against the City of Yakima Transit Division (re: paratransit services/Dial-A- Ride): 1. Notice of Complaint of Discrimination dated January 7, 2013, filed by Richard Turner with the Washington State Human Rights Commission The following pending lawsuit was filed against the City of Yakima and involves the City of Yakima Police Department: 2. Eddie L. Ford v. City of Yakima; Lieutenant N. Wentz; and Officer R. Urlacher U.S. District Court Eastern District of Washington Cause No. CV -09 -3108 -LRS U.S. Court of Appeals for Ninth Circuit Case No. 11-35319, _ F.3d , WL 485233 (2013) 1 March 11, 2013 The following pending matters involve a current and former employee in the City of Yakima Police Department: 3. Gary Garza Damage Claim filed January 14, 2013, with the Yakima City Clerk's office; and Charge of Discrimination dated May 17, 2012, filed by Gary Garza with the U.S. Equal Employment Opportunity Commission. The EEOC subsequently issued a "Notice of Right to Sue" to Gary Garza dated December 20, 2012. 4. Oscar Jeff Brownfield v. City of Yakima Yakima County Superior Court Case No. 09-2-03860-0; Court of Appeals of the State of Washington Division III No. 30994-1 III (Plaintiff appealed from Court's granting of motion for summary judgment in favor of City of Yakima.) The following pending lawsuit involves a former employee in the City of Yakima Utility Services Division: 5. Roy Munoz v. City of Yakima U.S. District Court for Eastern District of Washington Case No. 12 -CV -3024 -TOR (Plaintiff's attorney filed a motion to dismiss the federal lawsuit on February 15, 2013.) The following pending lawsuit involves a former employee in the City of Yakima Public Safety Communications Division: 6. Lisa Campanelli v. City of Yakima and Colleen Chapin -Williams Yakima County Superior Court Cause No. 12-2-03989-4 The following pending lawsuit involves a former employee who was a Municipal Court Clerk in the City of Yakima Municipal Court: 7. Tracy Garcia v. The City of Yakima United States District Court for Eastern District of Washington Case No. CV -12 -198 -EFS Tracy Garcia Damage Claim filed December 13, 2011, with the Yakima City Clerk's office; and Charge of Discrimination dated January 9, 2012, filed by Tracy Garcia with the U.S. Equal Employment Opportunity Commission. The EEOC subsequently issued a "Notice of Right to Sue" to Tracy Garcia dated January 12, 2012, and further stated: "The EEOC is terminating its processing of this charge." 2 March 11, 2013 The following pending lawsuit involves an action for injunctive and declaratory relief under Section 2 of the Voting Rights Act, 42 U.S.C. Section 1973: 8. Rogelio Montes and Mateo Arteaga v. City of Yakima, Micah Cawley, et al. United States District Court for Eastern District of Washington Case No. CV -12 -3108 -TOR In 2012, plaintiffs filed a Complaint under Section 2 of the Voting Rights Act requesting that the Court declare "that the at -large method of electing Yakima City Council members violates Section 2 of the Voting Rights Act of 1965" and that the Court order "the implementation of an election system for the Yakima City Council that complies with Section 2 of the Voting Rights Act of 1965". (Complaint, page 9-10) IV. List all civil rights lawsuits and administrative complaints decided against the applicant/recipient within the last year that allege discrimination based on race, color, national origin, sex, age, or disability and enclose a copy of all decisions. Please describe all corrective action taken. (Do not include employment complaints not covered by 40 C.F.R. Parts 5 and 7. See instructions on reverse side.) Not applicable. V. List all civil rights compliance reviews of the applicant/recipient conducted by any agency within the last two years and enclose a copy of the review and any decisions, orders, or agreements based on the review. Please describe any corrective action taken. (40 C.F.R. § 7.80(c)(3)) Not applicable. VI. Is the applicant requesting EPA assistance for new construction? If no, proceed to VII; if yes, answer (a) and/or (b) below. a. if the grant is for new construction, will all new facilities or alterations to existing facilities be designed and constructed to be readily accessible to and usable by persons with disabilities? If yes, proceed to VII; if no, proceed to VI(b). b. If the grant is for new construction and the new facilities or alterations to existing facilities will not be readily accessible to and usable by persons with disabilities, explain how a regulatory exception (40 C.F.R. § 7.70) applies. City of Yakima Wastewater Division: Current application for assistance, and also Ecology SRF and SRF-GPR Forgivable Principal loan L1100008 and Li 1S00008 respectively (same contract) and L12000019: The assistance will be for additional equipment added to existing infrastructure within the facility. The grease receiving station will be added to the existing digester system and the biosolids dryer will be built in (or added onto) an existing building. 3 March 11, 2013 City of Yakima Water/Irrigation Division: Drinking Water State Revolving Fund DM11-952-038: No. The assistance being received is being used for refurbishing existing structures. VII. *Does the applicant/recipient provide initial and continuing notice that it does not discriminate on the basis of race, color, national origin, sex, age, or disability in its programs or activities? (40 C.F.R. § 5.140 and § 7.95) a. Do the methods of notice accommodate those with impaired vision or hearing? b. Is the notice posted in a prominent place in the applicant's offices or facilities or, for education programs and activities, in appropriate periodicals and other written communications? c. Does the notice identify a designated civil rights coordinator? Yes. a. Accommodation is provided upon request. The City of Yakima Municipal Court contracts with the S.E. Center for the Deaf and Hard of Hearing to provide sign language interpreter services as needed. The Municipal Court also maintains equipment which supports Cochlear implant hardware for those who are hard of hearing. The Public Safety Communications Division uses equipment which is compatible with a teletype printer (TTY) in order to accommodate those who are hearing impaired. Also refer to the Yakima Parks & Recreation Program Guide available on the City's website located at www.yakimawa.gov which states: "The City of Yakima is committed to accommodating citizens with disabilities and special needs. Yakima Parks and Recreation will make reasonable efforts to ensure that programs are accessible." The Guide lists a contact telephone number as well as a statement indicating that Spanish speaking assistance is available regarding the available programs and activities. The Yakima Police Department has a police officer who is certified in ASL. The Police Department contracts with Central Washington Center for the Deaf when sign language interpretation is needed. b. Please refer to attached Administrative Policies: Equal Employment Opportunity, Policy No. 1-800; Workplace Anti -Harassment, Policy No. 1-2300; and Whistle Blower Reporting (Improper Governmental Action and Protecting Employees against Retaliation), Policy No. 1-2200. These policies are provided to all employees as part of an Employee Handbook and the Workplace Anti -Harassment Policy is posted in a common area at City Hall. The City's online "Employment Opportunities" page states: "If you have any questions regarding the recruitment process, or you require accommodation to participate in the application or examination process, please contact Human Resources at 575-6090 prior to the closing date....The City of Yakima does not discriminate on the basis of disability in admission, access to, treatment of, or employment in, its programs and activities. The City of Yakima is an Equal Opportunity Employer." The master recruitment form is available upon request. 4 March 11, 2013 c. No. However, see attached document entitled "Yakima Transit Title VI Program" for the City of Yakima Transit Division. VIII. *Does the applicant/recipient maintain demographic data on the race, color, national origin, sex, age, or handicap of the population it serves? (40 C.F.R. § 7.85(a)) Data is maintained regarding race, gender and age with regard to employees of the City of Yakima. A report is prepared biennially and provided to EEOC. The 2011 EEO -4 Survey is available upon request. IX. *Does the applicant/recipient have a policy/procedure for providing access to services for persons with limited English proficiency? (40 C.F.R. Part 7, E.O. 13166) The City of Yakima's website can be translated into Spanish by clicking the "Espanol" link in the upper right hand corner. Every City Council business meeting agenda has language stating: "The City provides special accommodations, such as hearing devices, wheelchair space or language interpreters, for City meetings." The City of Yakima has bilingual positions, and employees in these positions are paid additional compensation to provide interpreter assistance for citizens seeking City services. Chapter VI of the City of Yakima Charter Civil Service Rules contains a section on Bilingual Certification. The City of Yakima Municipal Court utilizes a Language Assistance Plan authorized by the State of Washington Administrative Office of the Courts ("AOC"), and provides interpreters for court and court services. The City of Yakima Transit Division uses Language Line Services, an over -the -phone 24/7 interpretation service, for non-English speaking bus riders, and prints a Transit Bus Book which includes bus route schedules and general public transportation information in English and Spanish. The City Manager's Officer, the Yakima Police Department and the Yakima Fire Department make available Spanish language pamphlets and informational materials. The City of Yakima Parks and Recreation Division also prints various program guides, newsletters, behavior policies, registration forms, newsletters, brochures and information sheets in English and Spanish. The City of Yakima Purchasing Division has a brochure printed in English and Spanish entitled "Selling to the City of Yakima and Yakima County" which is available at the Division's front desk, on-line and handed out at certain events. The City of Yakima Office of Neighborhood Development Services ("ONDS") conducts hearings on ONDS plans and programs, which are advertised in advance of the hearing date in local newspapers in both English and Spanish. The City of Yakima provides other documents in English and Spanish, including but not limited to control door tags, stop work notices and water quality reports. X. *If the applicant/recipient is an education program or activity, or has 15 or more employees, has it designated an employee to coordinate its compliance with 40 C.F.R. Parts 5 and 7? Provide the name, title, position, mailing address, e-mail address, fax number, and telephone number of the designated coordinator. 5 ATTACHMENT 4: GENERAL PROJECT MANAGEMENT REQUIREMENTS FOR THE WASHINGTON STATE WATER POLLUTION CONTROL REVOLVING FUND AND CENTENNIAL CLEAN WATER PROGRAM PROJECTS (UNLESS MODIFIED BY A SPECIAL TERM AND CONDITION IN PART V.) ACCOUNTING STANDARDS The RECIPIENT will maintain accurate records and accounts for the PROJECT ("PROJECT Records") in accordance with Chapter 43.09.200 RCW "Local Government Accounting - Uniform System of Accounting." These PROJECT Records will be separate and distinct from the RECIPIENT's other records and accounts (General Accounts): Eligible costs will be audited every other year or annually if more than $500,000 of federal funds are received in any given year. Audits will be performed by an independent, certified accountant or state auditor, which may be part of the annual audit of the General Accounts of the RECIPIENT. If the annual audit includes an auditing of this PROJECT, a copy of such audit, including all written comments, recommendations, and findings, will be furnished to the DEPARTMENT within 30 days after receipt of the final audit report. ACTIVITIES PROJECTS: TECHNICAL ASSISTANCE Technical assistance for agriculture activities provided under the terms of this LOAN will be consistent with the current U.S. Natural Resource Conservation Service ("NRCS") Field Office Technical Guide for Washington State. However, technical assistance, proposed practices, or PROJECT designs that do not meet these standards may be accepted if approved in writing by the NRCS and the DEPARTMENT. ACTIVITIES PROJECTS: BEST MANAGEMENT PRACTICES - Best Management Practices (BMPs) intended primarily for production, operation, or maintenance are not eligible. BMPs must be pre approved by the DEPARTMENT. AUTHORITY Authority of RECIPIENT This LOAN agreement is authorized by the Constitution and laws of the state of Washington, including the RECIPIENT's authority, and by the RECIPIENT pursuant tp the ordinance or resolution attached as ATTACHMENT 2. Opinion of RECIPIENT's Legal Counsel The DEPARTMENT has received an opinion of legal counsel to the RECIPIENT in the form and substance of Attachment 1. CERTIFICATIONS The RECIPIENT certifies by signing this LOAN agreement that all negotiated interlocal agreements necessary for the PROJECT are, or will be, consistent with the terms of this LOAN agreement and Chapter 39.34 RCW, "Interlocal Cooperation Act." The RECIPIENT will submit a copy of each interlocal agreement necessary for the PROJECT to the DEPARTMENT. The RECIPIENT certifies by signing this LOAN agreement that all applicable requirements have been satisfied in the procurement of professional services and that eligible and ineligible costs are separated and identifiable. The RECIPIENT will submit a copy of the final negotiated agreement to the DEPARTMENT for eligibility determination. The RECIPIENT certifies by signing this LOAN agreement that the requirements of Chapter 39.80 RCW, "Contracts for Architectural and Engineering Services," have been, or will be, met in procuring Page 1 of ATTACHMENT 4 qualified architectural/engineering services. The RECIPIENT will identify and separate eligible and ineligible costs in the final negotiated agreement and submit a copy of the agreement to the DEPARTMENT. CERTIFICATION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY EXCLUSION: 1. The RECIPIENT, 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 is unable to certify to the statements contained in the certification, they must provide an explanation•as to why they cannot. 2. The RECIPIENT will provide immediate written notice to the DEPARTMENT if at any time the RECIPIENT 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, 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. The RECIPIENT may contact the DEPARTMENT for assistance in obtaining a copy of those regulations. 4. The RECIPIENT agrees it will 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 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 is responsible for ensuring that any lower tier covered transaction complies with certification of suspension and debarment requirements. 7. The RECIPIENT 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. The'RECIPIENT agrees to keep proof in its agreement file, that it, and all lower tier recipients or contractors, are not suspended ordebarred, .and will make this proof available to the DEPARTMENT before requests for reimbursements will be approved for payment. The RECIPIENT must run a search in www.epls.gov and print a copy of completed searches to document proof of compliance. CLEAN WATER STATE REVOLVING ]FUND DATA REPORTING SHEET (DATA REPORTING SHEET) The RECIPIENT will submit the completed Data Reporting Sheet to the DEPARTMENT. The completed and signed Data Reporting Sheet will be included in this LOAN agreement as ATTACHMENT 7 (see ATTACHMENT 7 for further instructions). COMMENCEMENT OF WORK The DEPARTMENT reserves the right to terminate this LOAN agreement if work does not commence on the project within 4 months after the DEPARTMENT's deadline for signing this LOAN agreement. Page 2 of ATTACHMENT 4 COVENANTS AND AGREEMENTS Acceptance The RECIPIENT accepts and agrees to comply with all terms, provisions, conditions, and commitments of this LOAN agreement, including all incorporated and referenced documents, and to fulfill all assurances, declarations, representations, and commitments made by the RECIPIENT in its application, accompanying documents, and communications filed in support of its request for a LOAN. Accounts and Records The RECIPIENT will keep proper and separate accounts and records in which complete and separate entries will be made of all transactions relating to this LOAN agreement. The RECIPIENT will keep such records for six years after receipt of final LOAN disbursement. Alteration and Eligibility of PROJECT During the term of this LOAN agreement, the RECIPIENT (i) will not materially alter the design or structural character of the PROJECT without the prior written approval of the DEPARTMENT and (ii) will 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. Collection of ULID Assessments (if.used to secure the repayment of this LOAN) All ULID Assessments in the ULID will 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. Free Service The RECIPIENT will not furnish Utility service to any customer free of charge if providing that free service will affect the RECIPIENT's ability to meet the obligations of this LOAN agreement. Insurance The RECIPIENT will 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 will self -insure or will participate in an insurance pool or pools with reserves adequate, in the reasonable judgment of the RECIPIENT, to protect it against loss. Levy and Collection of Taxes (if used to secure the repayment of this 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. Maintenance and Operation of a Funded Utility The RECIPIENT will at all times maintain and keep a funded Utility in good repair, working order and condition and also will atall times operate the Utility and the business in an efficientmanner and at a reasonable cost. Pledge of Net Revenue and ULID Assessments in the ULID (if used to secure the repayment of this LOAN) Page, 3 of ATTACHMENT 4 For so long as the LOAN isoutstanding, 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 will 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 (i) to make, in part or in full, the final repayment to the DEPARTMENT of the LOAN Amount or, (ii) if not so applied, for any other lawful purpose of the RECIPIENT once the LOAN Amount, plus interest and any other amounts owing to the DEPARTMENT, have been paid in full. Sale or Disposition of Utility The RECIPIENT will 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 one of the following applies: 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. 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. 3.. The RECIPIENT receives from the transferee 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. The proceeds of any transfer under this paragraph will be used (i) to redeem promptly or irrevocably set aside for the redemption of, Senior Lien Obligations and to redeem promptly the LOAN, or (ii) to provide for part of the cost of additions to and betterments and extensions of the Utility. CULTURAL AND HISTORIC RESOURCES PROTECTION The RECIPIENT must comply with all requirements listed in Executive Order 05-05 and, if federally funded, Section 106 of the National Historic Preservation Act prior to implementing any project that involves ground disturbing activities. The RECIPIENT must conduct and submit a cultural resources survey or complete and submit an EZ -1 Form to the DEPARTMENT's project manager prior to any ground disturbing activities. The DEPARTMENT will contact the Department of Archaeology and Historic Preservation (DAHP) and affected tribes regarding the proposed project activities in order to fulfill Executive Order 05- 05/Section 106 requirements. Any prior communication between the RECIPIENT, the DAHP, and the tribes is not sufficient to meet requirements. Any mitigation measures as an outcome of this process will be requirements of this LOAN agreement. Another agency's cultural resources review must have prior approval from the DEPARTMENT in order to meet Executive Order 05-05/Section 106 requirements for the project. Page 4 of ATTACHMENT 4 Any ground disturbing activities that occur prior to the completion of the Executive Order 05- 05/Section 106 processes will not be eligible for reimbursement. Activities associated with cultural resources review are loan and grant eligible and reimbursable. 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 LOAN agreement. Non-discrimination Provision. The RECIPIENT will not discriminate on the basis of race, color, national origin or sex in the performance of this LOAN agreement. The RECIPIENT will 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 LOAN agreement which may result in the termination of this contract or other legally available remedies. The RECIPIENT will 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 LOAN agreement may be rescinded, canceled, or terminated in whole or in part, and the RECIPIENT may be declared ineligible for further funding from the DEPARTMENT. The RECIPIENT will, however, be given a reasonable time in which to cure this noncompliance. Fair Share Objective/Goals, 40 CFR, Part 33, Subpart D. If the dollar amount of this LOAN agreement or the total dollar amount of all of the RECIPIENT's financial assistance agreements in the current federal fiscal year from the Revolving Fund is over $250,000, the RECIPIENT accepts the applicable MBE/WBE fair share objectives/goals negotiated with EPA by the Office of Minority Women Business Enterprises as follows: Construction 10.00% MBE 6.00% WBE Supplies 8.00% MBE 4.00% WBE Services 10.00% MBE 4.00% WBE Equipment 8.00% MBE -8.00% WBE By signing this LOAN agreement the RECIPIENT is accepting the fair share objectives/goals stated above and attests to the fact that it is purchasing the same or similar construction, supplies, services and equipment, in the same or similar relevant geographic buying market as Office of Minority Women Business Enterprises. 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 LOAN agreement. Records documenting compliance with the following six good faith efforts will be retained: 1) Ensuring 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 recipients, this will include placing Disadvantaged Business Enterprises on solicitation lists and soliciting them whenever they are potential sources. Qualified Women and Minority business enterprises may be found on the Internet at www.omwbe.wa.gov or by contacting the Washington State Office of Minority and Women's Enterprises at 360-704-1181. Page 5 of ATTACHMENT 4 2) Making 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) Considering in the contracting process whether firms competing for large contracts could subcontract with Disadvantaged Business Enterprises. For Indian Tribal, State and local Government recipients, this will 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) Using 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, requiring the subcontractors to take the five good faith efforts in paragraphs 1 through 5 above. MBE/WBE Reporting, 40 CFR, Part 33, Sections 33.302, 33.502 and 33.503. The RECIPIENT agrees to provide forms: EPA Form 6100-2 DBE Subcontractor Participation Form and EPA Form 6100-3 DBE Subcontractor Performance Form to all its DBE subcontractors, and EPA Form 6100-4 DBE Subcontractor Utilization Form to all its prime contractors. These forms may be obtained from the DEPARTMENT's Water Quality Program financial assistance website. EPA Form 6100-2 — The RECIPIENT must document that this form was received by DBE subcontractor. DBE subcontractors may submit the completed form to the EPA Region 10 DBE coordinator in order to document issues or concerns with their usage or payment for a subcontract. EPA Form 6100-3 — This form must be completed by DBE subcontractor(s), submitted with bid, and kept with the contract. EPA Form 6100-4 - This form must be completed by the prime contractor, submitted with bid, and kept with the contract. The RECIPIENT also agrees to submit the DEPARTMENT's MBE/WBE 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. The RECIPIENT also agrees to ensure that recipients of identified loans also comply with provisions of 40CFR, Section 33.302. The RECIPIENT will include the following terms and conditions in contracts with all contractors, subcontractors, engineers,_ vendors, and any other entity for work or services pertaining to this LOAN 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 will 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; Page 6 of ATTACHMENT 4 2. Entity's mailing address, telephone number, and e-mail address; 3. The procurement on which the entity bid or quoted, and when; and 4. Entity's status as an MBE/WBE or non-MBE/WBE. EFFECTIVE DATE: The Effective Date of this LOAN agreement is the date agreed to by the DEPARTMENT and the RECIPIENT during the development of this LOAN agreement and should be no earlier than the date the RECIPIENT began incurring eligible PROJECT costs. Any work performed prior to the Effective Date of this LOAN agreement will be at the sole expense and risk of the RECIPIENT. Reimbursement for eligible costs incurred will not be released by the DEPARTMENT until the LOAN agreement is signed. FACILITIES PROJECTS: DELIVERABLES (IF APPLICABLE) Planning documents developed by the RECIPIENT must meet the requirements of Chapter 173-240 WAC, "Submission of Plans and Reports for Construction of Wastewater Facilities" and incorporate the State Environmental Review Process (SERP) review. State Environmental Review Process (SERP) and Federal Cross -Cutters. The RECIPIENT must comply with applicable SERP and federal cross cutting requirements. Costs incurred for construction activities prior to DEPARTMENT concurrence are not eligible for reimbursement. Investment Grade Efficiency Audit (IGEA). The RECIPIENT is required to obtain an IGEA for projects involving repair, replacement, or improvement of a wastewater treatment facility or other public works facility. The IGEA must include an analysis of potential energy and water efficiency measures and identify cost-effective measures for the RECIPIENT'.s facility. Plans and Specifications. Plans and specifications developed by the RECIPIENT must be reviewed and approved by Water Quality Program staff of the DEPARTMENT and be consistent with: 1. Requirements stated in Chapter 173-240 WAC, "Submission of Plans and Reports for Construction of Wastewater Facilities," as related to plans and specifications. 2. Good engineering practices and generally recognized engineering standards, including, but not limited to, the State of Washington's Criteria for Sewage Works Design (2008 or more recent edition), the Stormwater Management Manual for Western Washington (2005), the Stormwater Management Manual for Eastern Washington (2001), and the Washington State Department of Transportation Hydraulics Manual (2010). 3. The approved facilities plan. 4. Other reports approved by the DEPARTMENT which pertain to the facilities design. Specification Insert: The RECIPIENT will include the Washington State Department of Ecology Water Pollution Control Revolving Fund Specifications Insert as a special condition in the construction contract specifications. Contact the DEPARTMENT for the required specification inserts. RECIPIENT Approval. The plans, specifications, construction contract documents, and addenda must be approved by the RECIPIENT prior to submittal for DEPARTMENT review. Bid and Award Submittals (as applicable). The RECIPIENT will submit to the DEPARTMENT the following documents relating to bidding and award of any contract funded by this agreement: 1. A copy of the advertisement for bids. 2. A tabulation of all bids received, and a copy of the bid proposal from the successful bidder, 3. A copy of the Notice of Award, a copy of the executed contract, and a copy of the Notice to Proceed. Page 7 of ATTACHMENT 4 Construction Cost Estimate. A current, updated, detailed construction cost estimate will be submitted along with each plan/specification submittal. The project manager may request a spreadsheet in electronic file format. Form of Plans. All construction plans submitted to the DEPARTMENT for review and approval will be reduced to no larger than 11" x 17" in size. They may, at the RECIPIENT's option, be bound with the specifications or related construction contract documents or bound as a separate document. All reduced drawings must be completely legible. The project manager may request plans be submitted in either PDF or -AutoCAD electronic format, and specifications in a searchable PDF or Microsoft Word electronic file. All PDF documents submitted will be at a resolution of 300 dpi or better. DEPARTMENT Approval. The RECIPIENT will not proceed with any construction -related activities until all necessary plans and specifications are approved in writing by the DEPARTMENT. Bids and Awards. DEPARTMENT approval of the plans, specifications, and construction documents authorizes the RECIPIENT to solicit bids and award the construction contract (or reject bids) without further DEPARTMENT authorization or approval. However, any additional costs resulting from successful bid protests or other claims due to improper bid solicitation and award procedures will not be considered eligible for LOAN participation. Plan of Interim Operation. The plan of interim operation must be updated, as appropriate, throughout the PROJECT. Construction Quality Assurance Plan. A detailed construction quality assurance plan will be submitted at least 30 days prior to the commencement of construction in compliance with WAC 173-240-075. This plan must describe how adequate and competent construction inspection will be provided for the PROJECT. Construction Schedule. A construction schedule will be submitted to the DEPARTMENT within 30 days of the start of construction. The construction schedule will be revised and updated whenever major changes occur and resubmitted to the DEPARTMENT. When changes in the construction schedule affect previous cash flow estimates, revised cash flow projections must also be submitted to the DEPARTMENT. The project manager may request this schedule in an electronic file format. Change Orders. Change orders that are a significant deviation from the approved plans/specifications must be submitted in writing for DEPARTMENT review and approval, prior to execution. All other change orders must be submitted within 30 days after execution. The DEPARTMENT may approve, through formal amendment to this LOAN agreement, funding for change orders for up to five percent of the eligible portion of the low responsive responsible construction bid(s). Adjusted Construction Budget. The construction budget, as reflected in the LOAN, will be adjusted once actual construction bids are received. If the low responsive responsible construction bid(s) exceed the engineer's estimate of construction costs, the DEPARTMENT may approve funding increases for up to ten percent of the engineer's original estimate. If the low responsive responsible construction bid(s) are lower than estimated the DEPARTMENT may reduce funding to reflect the low bid amount. The DEPARTMENT may also reassess the LOAN amount based on additional funding from other sources received by the RECIPIENT after negotiation of this LOAN agreement. All changes to the LOAN amount will be done by formal amendment to this LOAN agreement. Record Drawings. Upon completion of construction, the RECIPIENT will provide the DEPARTMENT's Project Manager with a set of record drawings (i.e., record construction drawings which reflect changes, modifications, or other significant revisions made to the project during construction) in AutoCAD electronic format, and in reduced (11"x17") paper copy format. Declaration of Construction Completion. Along with the set of record drawings, the RECIPIENT will provide certification in the form contained in WAC 173-240-095, signed by a professional engineer, Page 8 of ATTACHMENT 4 indicating that the PROJECT was,completed in accordance with the plans and specifications and major change orders approved by the DEPARTMENT. Final Project Report. The RECIPIENT will complete and submit a Final Project Report upon completion of the PROJECT. A template is available on the DEPARTMENT'S website at: http://www.ecy.wa. gov/programs/wq/funding/GrantLoanMgmtDocs/GrantLoanMgmtTools.html. Operations and Maintenance Manual. An Operations and Maintenance Manual ("O&M Manual") will be prepared in conformance with WAC 173-240-080, "Operation and Maintenance Manual" or other applicable guidance and submitted to the DEPARTMENT for approval. The O&M Manual will be updated as necessary following start-up to reflect actual operating experience. The DEPARTMENT's project manager may request the O&M Manual be submitted in either paper format, PDF format, Microsoft Word, or other electronic file format acceptable to the DEPARTMENT's project manager. All PDF documents submitted will be at a resolution of 300 dpi or better. FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) REPORTING REQUIREMENTS: In order to comply with the FFATA, the RECIPIENT must complete the Data Reporting Form (see Attachment 7 for further instructions) and return it to the DEPARTMENT. The DEPARTMENT will report basic agreement information, including the required DUNS number, for all federally -funded agreements at www.fsrs.gov . This information will be made available to the public at www.usaspending.gov. RECIPIENTS who do not have a DUNS number can find guidance at www.grants.gov . Please note that the DEPARTMENT will not sign this LOAN agreement until it has - received the completed FFATA Data Collection Form. The RECIPIENT will submit this form electronically as well as provide a hard copy to the DEPARTMENT (see ATTACHMENT 7 for detailed instructions). Any RECIPIENT that meets each of the criteria below must also report compensation for its five top executives, using the DEPARTMENT's Federal Funding Accountability and Transparency Act (FFATA) Data Collection Form. • Receives more than $25,000 in federal funds under this award; and • Receives more than 80 percent of its annual gross revenues from federal funds; and • Receives more than $25,000,000 in annual federal funds See www.fsrs.gov for details of this requirement. If your organization falls into this category, you must report the required information to Ecology. FORCE ACCOUNT Prior to using its own forces to accomplish eligible PROJECT work, the RECIPIENT must request DEPARTMENT approval. The request must include a dollar amount and general description of the force account work. The request must also include a certification that the RECIPIENT has the legal authority to perform the work and adequate and technically qualified staff to perform the work without compromising other government functions. The RECIPIENT agrees to track and report the force account work submitted to the DEPARTMENT for reimbursement. FUNDING RECOGNITION All site-specific projects must have a sign of sufficient size to be seen from nearby roadways acknowledging department financial assistance and left in place throughout the life of the project or facility. Department logos must be on all signs and documents. Logos will be provided as needed. GROWTH MANAGEMENT PLANNING The RECIPIENT certifies by signing this LOAN agreement that it is in compliance with the requirements of Chapter 36.70A RCW, "Growth Management—Planning by Selected Counties and Page 9 of ATTACHMENT 4 Cities." Lf the status of compliance changes, either through RECIPIENT or legislative action, the RECIPIENT will notify the DEPARTMENT in writing of this change within 30 days. INCREASED OVERSIGHT (IF APPLICABLE) The RECIPIENT will submit all backup documentation with each payment request submittal. In addition, the DEPARTMENT's Project Manager will establish a schedule for additional site visits to provide technical assistance to the RECIPIENT and verify progress or payment information. INTERIM REFINANCE (IF APPLICABLE) The RECIPIENT agrees to use the funding from this LOAN agreement to pay-off existing debt for eligible costs incurred to complete this PROJECT, and to fund all or part of the remaining tasks outlined for this PROJECT. The RECIPIENT will maintain clear documentation of the debt pay-off and make such documentation available to the DEPARTMENT upon request. 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 will be absolute and unconditional, and will not be subject to diminution by setoff, counterclaim, or abatement of any kind. To secure the repayment of the LOAN from the DEPARTMENT, 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 will 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 will 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 the DEPARTMENT will hold this LOAN, the RECIPIENT will not be entitled to, and will not affect, an economic Defeasance of the LOAN. The RECIPIENT will not advance refund the LOAN. If the RECIPIENT defeases or advance refunds the LOAN, it will 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 the DEPARTMENT under this LOAN agreement, unless in its sole discretion the DEPARTMENT finds that repayment from those additional sources would not be in the public interest. Page 10 of ATTACHMENT 4 Failure to repay the LOAN Amount plus interest within the time specified in the . DEPARTMENT's notice to make such repayment will incur Late Charges and will be treated as a LOAN Default. 7. Refinancing or Early Repayment of the PROJECT. So long as the DEPARTMENT will hold this LOAN, the RECIPIENT will give the DEPARTMENT 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 LOAN agreement, the first semiannual payment of principal and interest on this LOAN will be paid no later than one year after'the PROJECT Completion Date or Initiation of Operation Date. Equal payments will be due every six months thereafter. If the due date for any semiannual payment falls on a Saturday, Sunday, or designated holiday for Washington State agencies, the payment will be due on the next business day for Washington State agencies. Payments will 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 the DEPARTMENT's Financial Manager. No change to the amount of the semiannual principal and interest payments will be made without a formal amendment to this LOAN agreement. The RECIPIENT will continue to make semiannual payments based on this LOAN agreement until the amendment is effective, at which time the RECIPIENT's payments will be made pursuant to the amended LOAN agreement. 2. Late Charges. If any amount of the Final LOAN Amount or any other amount owed to the DEPARTMENT pursuant to this LOAN agreement remains unpaid after it becomes due and payable, the DEPARTMENT may assess a Late Charge. The Late Charge will 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 the DEPARTMENT will 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 will 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 will first contact the DEPARTMENT's Revenue/Receivable Manager of the Fiscal Office. LOCAL LOAN FUND PROJECTS (IF APPLICABLE) Local Loan Fund. The RECIPIENT will use the funds received from the DEPARTMENT under this LOAN agreement to establish and administer a local loan fund. Page 11 of ATTACHMENT 4 Local Loan Fund Servicing. The RECIPIENT will be responsible for local loan servicing and collecting and tracking local loan payments, but may contract for such services through a lending institution. The RECIPIENT will officially approve or deny the local loan request and will establish the local loan interest rate and the repayment period. Schedule. A schedule for PROJECT completion, including milestone dates for loan marketing activities, numbers of loan applications and closures, disbursements, application deadlines, etc., will be submitted by the RECIPIENT with each quarterly progress report. MODIFICATIONS TO AGREEMENT No subsequent amendments to this LOAN agreement will be of any force or effect unless reduced to a writing and signed by authorized representatives of the RECIPIENT and the DEPARTMENT, and made part hereof, except: Insubstantial modifications may be approved in writing by the Department's Project Manager without a formal amendment. Insubstantial changes include: • LOAN agreement contact • Contact for billing/invoice questions • The DEPARTMENT'S Project Manager or Financial Manager • Frequency and number of required submittals • Budget allocations not affecting the total LOAN Amount • Similar changes requested by the RECIPIENT No amendment to this LOAN agreement will be effective until accepted or affirmed in writing by the DEPARTMENT. In no event will any oral agreement or oral commitment be effective to amend. this LOAN agreement. PAYMENT REQUEST SUBMITTALS Equipment Purchase Equipment not included in a construction plans and specification approvalmust be pre-approved by the DEPARTMENT's project manager. Requests for Reimbursement Instructions for submitting payment requests are found in ADMINISTRATIVE REQUIREMENTS, PART IV. A copy of this document will be furnished to the RECIPIENT. 1. Procedure. Payment requests will be submitted by the RECIPIENT to the Financial Manager of the DEPARTMENT. 2. Cost Reimbursable Basis: Payments to the RECIPIENT will be made on a "reimbursable basis" no more often than once per month unless allowed by the DEPARTMENT's Financial Manager. The DEPARTMENT's Financial Manager may require the RECIPIENT to submit regular payment requests to ensure efficient and timely use of funds. 3. Documentation: Each request for payment will be submitted by the RECIPIENT, along with documentation of the expenses per the DEPARTMENT's ADMINISTRATIVE REQUIREMENTS. 4. Required Forms: The RECIPIENT will submit all forms and supportive documentation to the DEPARTMENT's Financial Manager. Invoice voucher submittals will include: • State of Washington Invoice Voucher Form A19-1A • Form B2 (ECY 060-7) • Form C2 (ECY 060-9) • Form D (ECY 060-11) Page 12 of ATTACHMENT 4 5. Period of Payment. •Payments will only be made for eligible costs of the PROJECT pursuant to the LOAN agreement and performed after the effective date and prior to the expiration date of the LOAN agreement, unless those dates are specifically modified in this LOAN agreement. 6. Ineligible Costs. Payments will be made only for eligible PROJECT costs incurred and will not exceed the Estimated LOAN Amount. If any audit identifies LOAN funds which were used to support ineligible costs, such funds may be immediately due and payable to the DEPARTMENT notwithstanding any provision to the contrary herein. 7. Overhead Costs. No payment for overhead costs in excess of 25 percent of salaries and benefits of the RECIPIENT will be allowed. 8. Certification. Each payment request will 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 will be disclosed in writing to the DEPARTMENT by the RECIPIENT in its request for payment. 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 the DEPARTMENT's Water Quality Program will contact the RECIPIENT to request this data. The DEPARTMENT may also conduct site interviews and inspections, and may otherwise evaluate the PROJECT, as part" of this assessment. PREVAILING WAGE Prevailing Wage (Davis -Bacon Act): The RECIPIENT agrees, by signing this LOAN 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 will be paid wages not less often than once a week and at ratesnot less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor. The RECIPIENT will 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 will be incorporated into solicitations and any subsequent contracts. The RECIPIENT will 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 will 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 LOAN 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. Page .13 of ATTACHMENT 4 PROCUREMENT The RECIPIENT is responsible for procuring professional, personal, and other services using sound business judgment and good administrative procedures. This includes issuance of invitation of bids, requests for proposals, selection of contractors, award of subagreements, and other related procurement matters. The RECIPIENT will follow State procurement laws. PROGRESS REPORTS The RECIPIENT will submit progress reports to the DEPARTMENT at least quarterly or such other schedule as set forth herein. The RECIPIENT will submit a copy of each progress report to both the Financial Manager and the Project Manager of the DEPARTMENT. Quarterly reports will cover the periods: January 1 through March 31 April 1 through June 30 July 1 through September 30 October 1 through December 31 Quarterly reports are due 15 days following the end of the quarter being reported. Payment requests will not be processed without a current Progress Report. A progress report must be submitted even if no progress has occurred. A Progress Report Form is available on the DEPARTMENT's website at http://www. ecv. wa.gov/programs/wq/funding/G rantLoanMgmtDocs/GrantLoanMgmtTools. html . At a minimum, all progress reports must contain the items outlined in the DEPARTMENT's Progress . Report Form. The DEPARTMENT may request additional information as necessary. The RECIPIENT will also report in writing to the DEPARTMENT any problems, delays, or adverse conditions which will materially affect its ability to meet PROJECT objectives or time schedules. This disclosure will be accompanied by a statement of the action taken or proposed and any assistance needed from the DEPARTMENT to resolve the situation. REPRESENTATIONS AND WARRANTIES The RECIPIENT represents and warrants to the DEPARTMENT as follows: A. Existence; Authority. It is a duly formed and legally existing municipal corporation or political subdivision of the 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 LOAN agreement and to undertake the PROJECT identified herein. B. Application; Material Information. All information and materials submitted by the RECIPIENT to the DEPARTMENT in connection with its LOAN application were, when made, and are, as of the date the RECIPIENT executes this LOAN agreement, true and correct. There is no material adverse information relating to the RECIPIENT, the PROJECT, the LOAN, or this LOAN agreement known to the RECIPIENT which has not been disclosed in writing to the DEPARTMENT. C. Litigation; Authority. No litigation is now pending or, to the RECIPIENT'S knowledge, threatened, seeking to restrain, or enjoin: (i) the execution of this LOAN 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 Page 14 of ATTACHMENT 4 (iii) the levy andcollection 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 (iii) in any manner questioning the proceedings and authority under which the LOAN 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 LOAN agreement has been repealed, revoked, or rescinded. D. 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 LOAN agreement and the LOAN to be made do not create an indebtedness of the RECIPIENT in excess of any constitutional or statutory limitations. E. Due Regard - For LOANs secured with a Revenue Obligation: The RECIPIENT has exercised 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, will be available over and above such Maintenance and Operation Expense and those 'debt service requirements. SEWER -USER ORDINANCES AND USER -CHARGE SYSTEM (IF APPLICABLE) Sewer -Use Ordinance or Resolution If not already in existence, the RECIPIENT will adopt and will enforce a sewer -use ordinance or resolution. 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; and 4) require all existing and future residents to connect to the sewer system. Such ordinance or resolution will be submitted to the DEPARTMENT upon request by the DEPARTMENT. User -Charge System The RECIPIENT certifies that it has the legal authority to establish and implement a user -charge system and will adopt a system of user -charges to assure that each user of the utility will pay its proportionate share of the cost of operation and maintenance, including replacement during the design life of the PROJECT. In addition, the RECIPIENT will 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. SMALL COMMERCIAL ON-SITE SEWAGE SYSTEM REPAIR AND REPLACEMENT (IF APPLICABLE) On-site sewage system repair or replacement funding may be provided to eligible small commercial enterprises. The definition of "small commercial" requires that the average daily flows from any one single business cannot exceed 3,500 gallons per day. These enterprises may include public lodging (including motels, hotels, and bed and breakfast establishments), rentals (apartments, duplexes, or houses), small restaurants, stores, or taverns. The DEPARTMENT may adjust interest rates to below 2.6 percent based on evaluation of the RECIPIENT's total portfolio of local on-site sewage system loans issued to homeowners and small commercial enterprises. Page 15 of ATTACHMENT 4 The following is the Revolving Fund interest rate schedule for loans targeted to homeowners at three levels of county median household income: The following is the Revolving Fund interest rate schedule for loans targeted to small commercial enterprises at three levels of annual gross revenue: • Revolving fund Adjustable Interest Rate Schedule County Median Household Income* 5 -Year Term 20 -Year Term Above 80% 1.4% 2.7 % 50 — 80% 0.7% 1.4% Below 50% 0% 0.7 % The following is the Revolving Fund interest rate schedule for loans targeted to small commercial enterprises at three levels of annual gross revenue: • In order for a small commercial enterprise to be considered for extreme hardship, the business must provide documentation to substantiate that annual gross revenue is less than $100,000. The RECIPIENT agrees to submit a final compilation of the local loans provided to homeowners and small commercial enterprises throughout theduration of the PROJECT. The list will include information provided by the RECIPIENT regarding the number and final dollar amounts of loans funded in the following respective homeowner income and small commercial enterprise revenue levels: ✓ County Median Household Income • Above 80 % • 50to80% • Below 50 % • Small Commercial Enterprise Annual Gross Revenue • Above $100,000 • $50,000 to $100,000 • Below $50,000 TERMINATION AND DEFAULT; REMEDIES A. Termination and Default Events 1. For Insufficient DEPARTMENT or RECIPIENT Funds. This LOAN agreement may be terminated by the DEPARTMENT for insufficient DEPARTMENT or RECIPIENT funds. 2. For Failure to Commence Work. This LOAN agreement may be terminated by the DEPARTMENT for failure of the RECIPIENT to commence PROJECT work. 3. Past Due Payments. The RECIPIENT will 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 the DEPARTMENT to the RECIPIENT is contingent upon satisfactory performance in full by the RECIPIENT of all of its obligations under this LOAN agreement. The RECIPIENT will be in default of its obligations under this LOAN agreement if, in the opinion of the DEPARTMENT, the RECIPIENT has unjustifiably failed to perform any obligation required of it by this LOAN agreement. B. Procedures for Termination Page 16 of ATTACHMENT 4 Revolving Fund Adjustable 5 -Year Term Interest Rate Schedule 20 -Year Term Small Commercial Enterprise Annual Gross Revenue Above $100,000 1.4% 2.7 % $50,000 - $100,000 0.7% 1.4% Below $50,000 0% 0.7 % In order for a small commercial enterprise to be considered for extreme hardship, the business must provide documentation to substantiate that annual gross revenue is less than $100,000. The RECIPIENT agrees to submit a final compilation of the local loans provided to homeowners and small commercial enterprises throughout theduration of the PROJECT. The list will include information provided by the RECIPIENT regarding the number and final dollar amounts of loans funded in the following respective homeowner income and small commercial enterprise revenue levels: ✓ County Median Household Income • Above 80 % • 50to80% • Below 50 % • Small Commercial Enterprise Annual Gross Revenue • Above $100,000 • $50,000 to $100,000 • Below $50,000 TERMINATION AND DEFAULT; REMEDIES A. Termination and Default Events 1. For Insufficient DEPARTMENT or RECIPIENT Funds. This LOAN agreement may be terminated by the DEPARTMENT for insufficient DEPARTMENT or RECIPIENT funds. 2. For Failure to Commence Work. This LOAN agreement may be terminated by the DEPARTMENT for failure of the RECIPIENT to commence PROJECT work. 3. Past Due Payments. The RECIPIENT will 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 the DEPARTMENT to the RECIPIENT is contingent upon satisfactory performance in full by the RECIPIENT of all of its obligations under this LOAN agreement. The RECIPIENT will be in default of its obligations under this LOAN agreement if, in the opinion of the DEPARTMENT, the RECIPIENT has unjustifiably failed to perform any obligation required of it by this LOAN agreement. B. Procedures for Termination Page 16 of ATTACHMENT 4 If this LOAN agreement is terminated prior to PROJECT completion, the DEPARTMENT. will 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 DEPARTMENT will specify the Termination Date and, when applicable, the date by which the RECIPIENT must repay any outstanding balance of the LOAN arid all accrued interest (the "Termination Payment Date"). C. Termination and Default Remedies 1. No Further Payments. On and after the Termination Date, or in the event of a default event, the DEPARTMENT may, in its sole discretion, withdraw the LOAN and make no further payments under this LOAN agreement. 2. Repayment Demand. In response to a DEPARTMENT initiated termination event, or in response to a LOAN default event, the DEPARTMENT may in its sole discretion demand that the RECIPIENT repay the outstanding balance of the LOAN Amount and all accrued interest. 3. Interest after Repayment Demand. From the time that the DEPARTMENT demands repayment of funds, amounts owed by the RECIPIENT to the DEPARTMENT will accrue additional interest at the rate of one percent per month, or fraction thereof. 4. Accelerate Repayments. In the event of a default, the DEPARTMENT 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 Obligations upon the Net Revenue. Repayments not made immediately upon such acceleration will incur Late Charges. 5. Late Charges. All amounts due to the DEPARTMENT and not paid by the RECIPIENT by the Termination Payment Date or after acceleration following a default event, as applicable, will incur Late Charges. 6. Intercept State Funds. In the event of a default event and in accordance with RCW 90.50A.060, "Defaults," any state funds otherwise due to the RECIPIENT may, in the DEPARTMENT's sole discretion, be withheld and applied to the repayment of the LOAN. 7. Property to DEPARTMENT. In the event of a default event and at the option of the DEPARTMENT, any property (equipment and land) acquired under this LOAN agreement may, in the DEPARTMENT's sole discretion, become the DEPARTMENT's property. In that circumstance, the RECIPIENT's liability to repay money will be reduced by an amount reflecting the fair value of such property. 8. Documents and Materials. If this LOAN agreement is terminated, all finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT will, at the option of the DEPARTMENT, become DEPARTMENT property. The RECIPIENT will be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. 9. 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 LOAN agreement. 10. Fees and Expenses. In any action to enforce the provisions of this LOAN agreement, reasonable fees and expenses of attorneys and other reasonable expenses (including, without limitation, the reasonably allocated costs of legal staff) will be awarded to the prevailing party Page 17 of ATTACHMENT 4 as that term is defined in RCW 4.84.330, "Actions on contract or lease ...—Waiver prohibited." 11. Damages. Notwithstanding the DEPARTMENT's exercise of any or all of the termination or default remedies provided in this LOAN agreement, the RECIPIENT will not be relieved of any liability to the DEPARTMENT for damages sustained by the DEPARTMENT and/or the state of Washington because of any breach of this LOAN agreement by the RECIPIENT. The DEPARTMENT may withhold payments for the purpose of setoff until such time as the exact amount of damages due the DEPARTMENT from the RECIPIENT is determined. WATER QUALITY MONITORING Quality Assurance Project Plan (QAPP): Prior to initiating water quality monitoring activities, the RECIPIENT must prepare a Quality Assurance Project Plan (QAPP). The QAPP must follow the DEPARTMENT's "Guidelines for Preparing Quality Assurance Project Plans for Environmental Studies," (Ecology Publication No. 04- 03-030). The RECIPIENT may also reference the "Technical Guidance for Assessing the Quality of Aquatic Environments," revised February 1994 (Ecology Publication No. 91-78). (Remainder of this page has been intentionally left blank.) Page 18 of ATTACHMENT 4 ATTACHMENT 5: AGREEMENT DEFINITIONS Unless otherwise provided, the following terms will have the respective meanings for all purposes of this LOAN agreement: "Administrative Requirements" means the effective edition of DEPARTMENT's ADMINISTRATIVE REQUIREMENTS FOR ECOLOGY GRANTS AND LOANS at the signing of this LOAN. "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. "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 WAC 173-98-730. "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. "DEPARTMENT" means the state of Washington, Department of Ecology, or any successor agency or department. "Estimated LOAN Amount" means the initial amount of funds loaned to the RECIPIENT. "Final LOAN Amount" means all principal of and interest on the LOAN from the PROJECT Start Date through the PROJECT Completion Date. "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 Page 1 of ATTACHMENT 5 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 Govermnent under the Internal Revenue Code. "Guidelines" means the DEPARTMENT's Funding Guidelines that that correlate to the State Fiscal Year in which the PROJECT is funded. "Initiation of Operation" is 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. "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. "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. "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 LOAN agreement. "PROJECT Completion Date" is the date specified in the LOAN agreement as that on which the Scope of Work will be fully completed. "PROJECT Schedule" is that schedule for the PROJECT specified in the LOAN 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. "Scope of Work" means the tasks and activities constituting the PROJECT. "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 Page 2 of ATTACHMENT 5 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 RCW 90.50A.020. "Termination Date" means the effective date of the DEPARTMENT's termination of the LOAN agreement. "Termination Payment Date" means the date on which the RECIPIENT is required to repay to the DEPARTMENT 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 DEPARTMENT 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 DEPARTMENT 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. (Revised September 2007) Page 3 of ATTACHMENT 5 Page 4 of ATTACHMENT 5 ATTACHMENT 6: LOAN GENERAL TERMS AND CONDITIONS PERTAINING TO GRANT AND LOAN AGREEMENTS OF THE DEPARTMENT OF ECOLOGY A. RECIPIENT PERFORMANCE All activities for which grant/LOAN Funds are to be used shall be accomplished by the RECIPIENT and RECIPIENT's employees. The RECIPIENT shall only use contractor/consultant assistance if that has been included in the LOAN agreement's final scope of work and budget. B. SUBGRANTEE/CONTRACTOR COMPLIANCE The RECIPIENT must ensure that all subgrantees and contractors comply with the terms and conditions of this LOAN agreement. C. THIRD PARTY BENEFICIARY The RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this LOAN agreement, the state of Washington is named as an express third -party beneficiary of such subcontracts with full rights as such. D. CONTRACTING FOR SERVICES (BIDDING) Contracts for construction, purchase of equipment and professional architectural and engineering services shall be awarded through a competitive process, if required by State law. RECIPIENT shall retain copies of all bids received and contracts awarded, for inspection and use by the DEPARTMENT. E. ASSIGNMENTS No right or claim of the RECIPIENT arising under this LOAN agreement shall be transferred or assigned by the RECIPIENT. F. COMPLIANCE WITH ALL LAWS 1. The RECIPIENT shall comply fully with all applicable Federal, State and local laws, orders, regulations and permits. Prior to commencement of any construction, the RECIPIENT shall secure the necessary approvals and permits required by authorities having jurisdiction over the project, provide assurance to the DEPARTMENT that all approvals and permits have been secured, and make copies available to the DEPARTMENT upon request. 2. Discrimination. The DEPARTMENT and the RECIPIENT agree to be bound by all Federal and State laws, regulations, and policies against discrimination. The RECIPIENT further agrees to affirmatively support the program of the Office of Minority and Women's Business Enterprises to the maximum extent possible. If the LOAN agreement is federally -funded, the RECIPIENT shall report to the DEPARTMENT the percent of grant/LOAN Funds available to women or minority owned businesses. 3. Wages and Job Safety. The 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. 4. Industrial Insurance. The RECIPIENT certifies full compliance with all applicable state industrial insurance requirements. If the RECIPIENT fails to comply with such laws, the DEPARTMENT Page 1 of ATTACHMENT 6 shall have the right to immediately terminate this LOAN agreement for cause as provided in Section K.1, herein. G. KICKBACKS The RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this project to give up any part of the compensation to which he/she is otherwise entitled or, receive any fee, commission or gift in return for award of a subcontract hereunder. H. AUDITS AND INSPECTIONS 1. The RECIPIENT shall maintain complete program and financial records relating to this LOAN agreement. Such records shall clearly indicate total receipts and expenditures by fund source and task or object. All grant/loan records shall be kept in a manner which provides an audit trail for all. expenditures. All records shall be kept in a common file to facilitate audits and inspections. Engineering documentation and field inspection reports of all construction work accomplished under this LOAN agreement shall be maintained by the RECIPIENT. 2. All grant/loan records shall be open for audit or inspection by the DEPARTMENT or by any duly authorized audit representative of the State of Washington for a period of at least three years after the final grant payment/loan repayment or any dispute resolution hereunder. If any such audits identify discrepancies in the financial records, the RECIPIENT shall provide clarification and/or make adjustments accordingly. 3. All work performed under this LOAN agreement and any equipment purchased, shall be made available to the DEPARTMENT and to any authorized state, federal or local representative for inspection at any time during the course of this LOAN agreement and for at least three years following grant/loan termination or dispute resolution hereunder. 4. RECIPIENT shall meet the provisions in OMB Circular A-133 (Audits of States, Local Governments & Non Profit Organizations), including the compliance Supplement to OMB Circular A-133, if the RECIPIENT expends $500,000 or more in a year in Federal funds. The $500,000 threshold for each year is a cumulative total of all federal funding from all sources. The RECIPIENT must forward a copy of the audit along with the RECIPIENT'S response and the final corrective action plan to the DEPARTMENT within ninety (90) days of the date of the audit report. I. PERFORMANCE REPORTING • The RECIPIENT shall submit progress reports to the DEPARTMENT with each payment request or such other schedule as set forth in the Special Conditions. The RECIPIENT shall also report in writing to the DEPARTMENT any problems, delays or adverse conditions which will materially affect their ability to meet project objectives or time schedules. This disclosure shall be accompanied by a statement of the action taken or proposed and any assistance needed from the DEPARTMENT to resolve the situation. Payments may be withheld if required progress reports are not submitted. Quarterly reports shall cover the periods January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31. Reports shall be due within thirty (30) days following the end of the quarter being reported. J. COMPENSATION 1. Method of compensation. Payment shall normally be made on a reimbursable basis as specified in the LOAN agreement and no more often than once per month. Each request for payment will be Page 2 of ATTACHMENT 6 submitted by the RECIPIENT on State voucher request forms provided by the DEPARTMENT along with documentation of the expenses. Payments shall be made for each task/phase of the project, or portion thereof, as set out in the Scope of Work when completed by the RECIPIENT and approved as satisfactory by the Project Officer. The payment request form and supportive documents must itemize all allowable costs by major elements as described in the Scope of Work. Instructions for submitting the payment requests are found in "Administrative Requirements for Ecology Grants and Loans", part IV, published by the DEPARTMENT. A copy of this document shall be furnished to the RECIPIENT. When payment requests are approved by the DEPARTMENT, payments will be made to the mutually agreed upon designee. Payment requests shall be submitted to the DEPARTMENT and directed to the Project Officer assigned to administer this LOAN agreement. 2. Period of Compensation. Payments shall only be made for actions of the RECIPIENT pursuant to the grant/LOAN agreement and performed after the effective date and prior to the expiration date of this LOAN agreement, unless those dates are specifically modified in writing as provided herein. 3. Final Request(s) for Payment. The RECIPIENT should submit final requests for compensation within forty-five (45) days after the expiration date of this LOAN agreement and within fifteen (15) days after the end of a fiscal biennium. Failure to comply may result in delayed reimbursement. 4. Performance Guarantee. The DEPARTMENT may withhold an amount not to exceed ten percent (10%) of each reimbursement payment as security for the RECIPIENT's performance. Monies withheld by the DEPARTMENT may be paid to the RECIPIENT when the project(s) described herein, or a portion thereof, have been completed if, in the DEPARTMENT's sole discretion, such payment is reasonable and approved according to this LOAN agreement and, as appropriate, upon completion of an audit as specified under section J.6. herein. 5. Unauthorized Expenditures. All payments to the RECIPIENT may be subject to final audit by the DEPARTMENT and any unauthorized expenditure(s) charged to this grant/loan shall be refunded to the DEPARTMENT by the RECIPIENT. 6. Mileage and Per Diem. If mileage and per diem are paid to the employees of the RECIPIENT or other public entities, it shall not exceed the amount allowed under state law for state employees. 7. Overhead Costs. No reimbursement for overhead costs shall be allowed unless provided for in the Scope of Work hereunder. K. TERMINATION 1. For Cause. The obligation of the DEPARTMENT to the RECIPIENT is contingent upon satisfactory performance by the RECIPIENT of all of its obligations under this LOAN agreement. In the event the RECIPIENT unjustifiably fails, in the opinion of the DEPARTMENT, to perform any. obligation required of it by this LOAN agreement, the DEPARTMENT may refuse to pay any further funds there under and/or terminate this LOAN agreement by giving written notice of termination. A written notice of termination shall be given at least five working days prior to the effective date of termination. In that event, all finished or unfinished documents, data studies, surveys, drawings, maps, models, photographs; and reports or other materials prepared by the RECIPIENT under this LOAN agreement, at the option of the DEPARTMENT, shall become Department property and the RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Page 3 of ATTACHMENT 6 Despite the above, the RECIPIENT shall not be relieved of any liability to the DEPARTMENT for damages sustained by the DEPARTMENT and/or the State of Washington because of any breach of LOAN agreement by the RECIPIENT. The DEPARTMENT may withhold payments for the purpose of setoff until such time as the exact amount of damages due the DEPARTMENT from the RECIPIENT is determined. 2. Insufficient Funds. The obligation of the DEPARTMENT to make payments is contingent on the availability of state and federal funds through legislative appropriation and state allotment. When this LOAN agreement crosses over state fiscal years the obligation of the DEPARTMENT is contingent upon the appropriation of funds during the next fiscal year. The failure to appropriate or allot such funds shall be good cause to terminate this LOAN agreement as provided in paragraph K.1 above. When this LOAN agreement crosses the RECIPIENT's fiscal year, the obligation of the RECIPIENT to continue or complete the project described herein shall be contingent upon appropriation of funds by the RECIPIENT's governing body; provided, however,, that nothing contained herein shall preclude the DEPARTMENT from demanding repayment of ALL funds paid to the RECIPIENT in accordance with Section 0 herein. 3. Failure to Commence Work. In the event the RECIPIENT fails to commence work on the project funded herein within four months after the effective date of this LOAN agreement, or by any date agreed upon in writing for commencement of work, the DEPARTMENT reserves the right to terminate this LOAN agreement. L. WAIVER Waiver of any RECIPIENT default is not a waiver of any subsequent default. Waiver of a breach of any provision of this LOAN agreement is not a waiver of any subsequent breach and will not be construed as a modification of the terms of this LOAN agreement unless stated as such in writing by the authorized representative of the DEPARTMENT. M. PROPERTY RIGHTS 1. Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable property, the RECIPIENT may copyright or patent the same but the DEPARTMENT retains a royalty -free, nonexclusive and irrevocable license to reproduce, publish, recover or otherwise use the material(s) or property and to authorize others to use the same for federal, state or local government purposes. Where federal funding is involved, the federal government may have a proprietary interest in patent rights to any inventions that are developed by the RECIPIENT as provided in 35 U.S.C. 200-212. 2. Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish informationof the DEPARTMENT; present papers, lectures, or seminars involving information supplied by the DEPARTMENT; use logos, reports, maps or other data, in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to the DEPARTMENT. 3. Tangible Property Rights. The DEPARTMENT's current edition of "Administrative Requirements for Ecology Grants and Loans", Part V, shall control the use and disposition of all real and personal property purchased wholly or in part with funds furnished by the DEPARTMENT in the absence of state, federal statute(s), regulation(s), or policy(s) to the contrary or upon specific instructions with respect thereto in the Scope of Work. Page 4 of ATTACHMENT 6 4. Personal Property Furnished by the DEPARTMENT. When the DEPARTMENT provides personal property directly to the RECIPIENT for use in performance of the project, it shall be returned to the B=4 DEPARTMENT prior to final payment by the. DEPARTMENT. If said property is lost, stolen or damaged while in the RECIPIENT's possession, the DEPARTMENT shall be reimbursed in cash or by setoff by the RECIPIENT for the fair market value of such property. 5. Acquisition Projects. The following provisions shall apply if the project covered by this LOAN agreement includes funds for the acquisition of land or facilities: a. Prior to disbursement of funds provided for in this LOAN agreement, the RECIPIENT shall establish that the cost of land/or facilities is fair and reasonable. b. The RECIPIENT shall provide satisfactory evidence of title or ability to acquire title for each parcel prior to disbursement of funds provided by this LOAN 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 contemplated by this LOAN agreement. 6. Conversions. Regardless of the contract termination date shown on the cover sheet, the RECIPIENT shall not at any time convert any equipment, property or facility acquired or developed pursuant to this LOAN agreement to uses other than those for which assistance was originally approved without prior written approval of the DEPARTMENT. Such approval may be conditioned upon payment to the DEPARTMENT of that portion of the proceeds of the sale, lease or other conversion or encumbrance which monies granted pursuant to this LOAN agreement bear to the total acquisition, purchase or construction costs of such property. N. SUSTAINABLE PRODUCTS In order to sustain Washington's natural resources and ecosystems, the RECIPIENT is encouraged to implement sustainable practices where and when possible. These practices include use of clean energy, and purchase and use of sustainably produced products (e.g., recycled paper). For more information, see http://www.ecy.wa.gov/sustainability/. O. RECOVERY OF PAYMENTS TO RECIPIENT The right of the RECIPIENT to retain monies paid to it as reimbursement payments is contingent upon satisfactory performance of this LOAN agreement including the satisfactory completion of the project described in the Scope of Work. In the event the RECIPIENT fails, for any reason, to perform obligations required of it by this LOAN agreement, the RECIPIENT may, at the DEPARTMENT's sole discretion, be required to repay to the DEPARTMENT all grant/LOAN Funds disbursed to the RECIPIENT for those parts of the project that are rendered worthless in the opinion of the DEPARTMENT by such failure to perform. Interest shall accrue at the rate of twelve percent (12%) per year from the time the DEPARTMENT demands repayment of funds. If payments have been discontinued bythe DEPARTMENT due to insufficient funds as in Section K.2 above, the RECIPIENT shall not be obligated to repay monies which had been paid to the RECIPIENT prior to such termination. Any property acquired under this AGREEMENT, at the option of the DEPARTMENT, may become the DEPARTMENT'S property and the RECIPIENT'S liability to repay monies shall be reduced by an amount reflecting the fair value of such property. Page 5 of ATTACHMENT 6 P. PROJECT APPROVAL The extentand character of all work and services to be performed under this LOAN agreement by the RECIPIENT shall be subject to the review and approval of the DEPARTMENT through the Project Officer or other designated official to whom the RECIPIENT shall report and be responsible. In the event there is a dispute with regard to the extent and character of the work to be done, the determination of the Project Officer or other designated official as to the extent and character of the work to be done shall govern. The RECIPIENT shall have the right to appeal decisions as provided for below. Q. DISPUTES Except as otherwise provided in this LOAN agreement, any dispute concerning a question of fact arising under this LOAN agreement which is not disposed of in writing shall be decided by the Project Officer or other designated official who shall provide a written statement of decision to the RECIPIENT. The decision of the Project Officer or other designated official shall be final and conclusive unless, within thirty days from the date of receipt of such statement, the RECIPIENT mails or otherwise furnishes to the Director of the DEPARTMENT a written appeal. In connection with appeal of any proceeding under this clause, the RECIPIENT shall have the opportunity to be heard and to offer evidence in support of this appeal. The decision of the Director or duly authorized representative for the determination of such appeals shall be final and conclusive. Appeals from the Director's determination shall be brought in the Superior Court of Thurston County. Review of the decision of the Director will not be sought before either the Pollution Control Hearings Board or the Shoreline Hearings Board. Pending final decision of dispute hereunder, the RECIPIENT shall proceed diligently with the performance of this LOAN agreement and in accordance with the decision rendered. R. CONFLICT OF INTEREST No officer, member, agent, or employee of either party to this LOAN agreement who exercises any function or responsibility in the review, approval, or carrying out of this LOAN agreement, shall participate in any decision which affects his/her personal interest or the interest of any corporation, partnership or association in which he/she is, directly or indirectly interested; nor shall he/she have any personal or pecuniary interest, direct or indirect, in this LOAN agreement or the proceeds thereof. S. INDEMNIFICATION 1. The DEPARTMENT shall 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. 2. To the extent that the Constitution and laws of the State of Washington permit, each party shall 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 LOAN agreement. T. GOVERNING LAW This LOAN agreement shall be governed by the laws of the State of Washington. Page 6 of ATTACHMENT 6 U. SEVERABILITY If any provision of this LOAN agreement or any provision of anydocument incorporated by reference shall be held invalid, such invalidity shall not affect the other provisions of this LOAN agreement which can be given effect without the invalid provision, and to this end the provisions of this LOAN agreement are declared to be severable. V. PRECEDENCE In the event of inconsistency in this LOAN 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) Scope of Work; (c) Special Terms and Conditions; (d) Any terms incorporated herein by reference including the "Administrative Requirements for Ecology Grants and Loans"; and (e) the General Terms and Conditions. SS -010 Rev. 04/04 Page 7 of ATTACHMENT 6 Page 8 of ATTACHMENT 6 ATTACHMENT 7: THE FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) & EPA DATA REPORTING SHEET (DATA REPORTING SHEET) Instructions The RECIPIENT is required to complete and submit the Data Reporting Sheet to the DEPARTMENT as ATTACHMENT 7 of this LOAN agreement. The information provided in the Data Reporting Sheet 1) fulfills the FFATA reporting requirements (see FFATA Reporting Requirements, ATTACHMENT 4); and 2) gathers additional information required to be reported to the Environmental Protection Agency (EPA) The RECIPIENT will please: 1. Access the Data Reporting Sheet Form on the DEPARTMENT'S Water Quality Program financial management website. 2. Fill out the form completely, including compensation information (if all FFATA criteria are met). 3. Print a copy of the completed form. 4. Get the appropriate signature on the form and submit as ATTACHMENT 7 of this LOAN agreement. S. Send the electronic copy to the DEPARTMENT'S Project Manager and Financial Manager. Page 1 of ATTACHMENT 7 opluqinpg .Of ECOLOGY Stitt or igashrageaa ATTACHMENT 7: THE FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) & EPA DATA REPORTING SHEET (DATA REPORTING SHEET) General Project Information Lban AgreeMent Number: ( 3 0° ° 5 Pet:Ott Title: METHANE UTILIZATIONIENERGY CONSERVATION PROJECT Name of Recipient Organization: City of Yokirria Recipient's Project Manager Contact Information (kerne, AddresS, Telephone, Ryan Anderson 2220 E Viola Ave Yakima 00001 Rite' kiMviianoit (509)240400 Ecology Project Contacts; Pr9100 NiPnetier; Financial Manager:. Chris Coffin Bill Haspim Project.Start Date: January1 2012_ Antleipated Project cpmpietio0 Date; ' 3.0 2014 Anticipetett Initiatien of Opertion bete (iferipliceble); 4.0111;rti- 2014 . Totetkoject CO* tte,501;66' Total Ccernrnitbld EColOgy LO/#!171 Funding: $.5,opooro , NOTE; Giddence document for the questions below Can be found et; bittbliWifiM),:eCV..Witl:ridviiiitigraMSIWOHUndiriO/driftitLoariMiiiiitbOcaiGUidandiatikr initialRetiorlddb Prolect:Detalls Categaries for the Project (Ctiorise all that are involved in the, scope of v,vorit Of Oita project. And the percentage, by cost, of the project work involved in each of those categories) (See Guidance document for the CategOry descriptions): z k D Planning and Design Only Wastewater -Treatment Works -Categories 0 Category 1 % 0 Category II 0 Category 111A % O Category 1118 0 Category IVA % 0 Category IVB 0 Category V % 0 Category VI % 0 Category X % U Category, yfirAk % 0 CatioOty VII -B % 0 Category VII -C % 0 Category V11-0 % 0 Category VII -E % 1011 Category VII -F % 0 Category VII -G % Category VII -11 El Category VII -1 Category yiki tit Category VII -K % Categey VII -1 Population Served by the f%ciplentprgankation; 118000 , , Population Ser Ved bythePeeled 061 acts skip this question); 118000 Population Served by the total System (Ilonpoint/Activity projects skip thio queation); 118000 . Wastewater Volume (Design Flow) fe PrOject,'(iiiMfttl�nsof Gailitins` 'liar Day,- Mdri) (Nonpoint/Acti\Ity projects skip this question): 21.5641 Wastewater Volume (Design Flow) for the totatSystern, (in Millions of Gallons per Day, MGD) , t‘: ' • , (Ifslonpoint/ActiViiy projects skip this question): 21.5 mgd Check all that this project involves: 0 Ocean pitfall Estuaiy/Cqastai By 0 Wetland Surface Water (Stream, River, Lake) []Groundwter 0 Land Application Eliminates Discharge 0 Involves No Change in Discharge 0 Discharge is Seasonal 0 No Discharge Involved if National Pollutant Discharge Elimination System (NPDES) Permit number (if applicable): WA0024023 Other Permit (as applicable), such as State DISCharge permit, Phase i/Phase II Stormwater permit, etc Enter the type of permit and Its number; Type: Number: Name of the most primary Receiv,ing Waterbody (itapplicable): Yakima River For Facility projects, identify the Latitude and Longitude (in Decimal Degrees) of the facility by its outran location, or where it is impacting the primary Receiving Wetorbody: Latitude: 40 34' 48" N Longitude: 120 27' 82" Primary Receiving Watorbody's Federal NHO 1240 Hup COde: 170300030200 (Important EPA reporting elenient, The Collor/Art Internet page will allow you to drag over to Washington State end deublo-dielt to zoom in and locate the 12 digit WC code for thearea where the project le looatodt iiiipAilaWiraltriMalni040444.Arinhtthithji ) Ss dr( kwIctikt o r .Q. m a 1.1 ty Please choose only one) - Project contributes to water quality Improvement O Maintenance E • lease choote only one) — Project will allow the system to 1011 Achieve Compliance El Maintain Compliance ID Progress Toward Achieving Compliance 0 Not Applicable (for Nonpoint projects) (please choose only one) — The primary affected waterbody is 0 Meeting Standards El Impaired 0 Threatened El Not Yet Assessed (Please choose only one) Project allows the system to address 0 Brisling TMDL M Projected TMDL ❑ Watershed Management Plan 1 Designated Surface Water Uses This Project Helps,..Orotect.or Restore Identify the Designated Surface Water Uses, Other Uses, and Outcomes that this project helps to protect or rettore. If the project maintains or improves water quality, if it 4 increases effluent loadings but meets its permit, it contributes to protection of the uses you find when matching pollutants. If the project reduces loadings ,of a pollutant that is impairing a designated use (303(d) list), the project contributes to restoration of that - use, Select all applicable Uses and Outcomes (and if the project is Protecting it or Restoring it), and identify which one is the Primary one that the project Is Intended to protect or restore (check only one of them as the Primary): EIWater Sup—plyz-Zotilest16. .0;e4 4A‘',0" • '14.1 Protect w- 1.'4° ;'•-• 0FigitOreit, OPrimary OWater Supply - Industrial Protect DRestore .111111Primary • titer Supply - Agricultural/Stock Watering Protect RRetstore Primary Protect Restore Salmonid Migration, Growth, and Harvesting Primary Other Fish Migration Growth, and Harvesting 34 Protect RRestore Primary ['Clam, Oyster, and Mussel Growth and Harvesting [Protect ['Restore DPrimary DCrustaceanslOther Shellfish Growth and Harvesting ['Protect ORestore OPrirnary ['Wildlife Habitat [Protect DRestore [Primary ['Primary Contact Recreation Protect Clean Water State Revolving Fund ° . initial Data Reporting Sheet ` i0Restore OPriniary []Secondary Contact Recreation,.Boatirig Protect' ' ` . ' . ®Restore OPrimary . iDAesthetic Enjoyment ;, Protect ORestore OPrimary OCommerce and Navigation IDProtect ORestore OPrimary Olnfrestructure Improvement Protect ORostore IDPrintary RegienattaationiCon otodation Protect I. Restore Primary OWater ReueetRecyclingiConservation Protect Rostoro Primary OGroundwator Protection Protect Restore al Primary ODtinking Water Supply OProtect ORettore ![]Primary OOther Public HealthlPathogen Reduction Protect ]Restore []Primary /Z1 bt ,�i Clean Water State 'Revolving, fund (Rev.Ulifing, Fund) Federal Funding and Transparency Act (FFATA) EPA Data,t3qp,orttng Sheet (Date Repotting! Sheet) Revolving Mind funding 'requires compliance With the Federal Funding Accountability and Transparency Act by both E(Ol9gYf(And,*lpient.of RevolVirig!FkindcfOncling. Thepurpose of the Transparency Act Is to make information available online for the public to see, how recipients are spending 'federal fUnds, One key requirement. -is for your organization to have a Data Universal Numbering System (DUNS) number and to supply it via the 'FFATAsrepOrting betketg. If*, do riOtaireadi have One, you -may get a DUNS free of charge, by contacting Dun and Bradstreet at WwW:dribtarn. Revoiv!ing Fund Ln Agreement Nunibert, Lt 0°P, 1 6 • Recipiant:Informatron' • , , _ Legal Name . - _. a d YakirTVA ,.. .. _. . .. . _ . DUNS N):100fer,, • '• , ' 07R212651 Ptititiple Place of PeifOrMance- 129 N rd. Street if City - Yakima . State - ; 9,8901 Country .USA In Receive loans, $25,000,000 loans, The ditO0911.periOdic pot . .executives the preceding fiscal Veer did your orgsroxSton: 860/0 or more of annual gross revenue from federal contracts, subcontracts, grants, aubgrants, and/or cooperative agreements; pratt or more in annual gross revenues from federal contracts, subcontracts, grants, tObgranta, and/or cooperative agreements; just public does not have access to Information about the compensation of the executives reports filed with the IRS or the Security and Exchange Commission 01'2 CFR '70.:330., NO. Skip to signature block, sign and date, complete page 2, and return. YES. You must report_the following information for the five (5) most highly compensated in your organization. Sign, date and return. , . ,.. , . . - e.',Of Offidal, .,„` :''. ,. ''''' ' ‘‘.: P�sidon',,, ' ..: „ --: Iglien7fatfoliV ,„ ; r"iiii-f- Eirai; • , • . Clean Water State' Revolving Fund (ReSiqViOg Fund) Federal FUnding and,Treneparehai Adt(FFATA) EPA. Data Reporting Sheet-,(Date'Repcirtirig Sheet) *Note:TTotal conipensaiotritean the cash"and, nottatif.clopValUeeOrned_by the'sexwitiye , , N i - n,.. • • * • 1, •.• • l , , • during the,subreciptent's past fiscal year: (For rhbre information, see 17 CFR 229 402 (C)()). n. n By signing this - ' , document, the Authorized Representative attests to the - Information alioie. Signature of Authcirized Representative Pont Name Date Please submit these ompleted forms (FFATA itt Data Reporting Sheet) using the instructions in your Revolving Fund Loan agreement ATTACHMENT #7: The Department of Ecology will not sign the Revolving Fund agreement without these forms properly completed .; and submitted loan agreement instructions Revblving Fund Loan Agreement Number • • • • Clean Water State Revolving Fund (Revolving Fund) Federal Funding and Transparency Act (FFATA) EPA Data Reporting, Sheet (Date Reporting Sheet) Project Description ( instructions, and_example below.) METHANE UTILIZATION/ENERGY CONSERVATION PROJECT: The project will evaluate and optimize methane gas generation and utilization at the City of Yakima Wastewater Treatment Plant. This project will specifically provide funding for design and installation of a waste grease receiving station. The grease receiving station will allow for increased production of biogas (methane). Funding will also be used to design and partially purchase a biosolids dryer. The dryer will be fueled with the increased biogas. Instructions for Subaward Project Description: In the first line of the description, provide a title for the subaward that captures the main purpose of the subrecipient's work. Then, Indicate the name of the subrecipient and provide a brief description that captures the overall purpose of the subaward, how the funds will be used, and what will be accomplished. Example of a Subaward Project Description: Increase Healthy Behaviors: Educational Services District XYZ will provide training and technical assistance to chemical dependency centers to assist the centers to integrate tobacco use into their existing addiction treatment programs. 5 Clean WaterState Revolving Fund (Revolving Fund) FedetalFuridingand,Trantriarency'Act (FFATA) EPA Data Reporting Sheet (Data, Reptiiting Sheet) Funds will also be used to assist cenwsin creating, tobacco -free treatment environments. • Dept. of Ecology Loan Number Recipient Name Amortization Method Project Completion Date Initiation of Operations ESTIMATED LOAN REPAYMENT SCHEDULE L1300018 City of Yakima Compound -365 D/Y 12/31/2014 11/01/2014 ATTACHMENT 8 Loan Amount Term of Loan Annual Int. Rate Interest Compounded Loan Date $5,000,000.00 39 Payments 2.700 % Monthly 11/01/2014 Loan Number Recipient Name L1300018 City of Yakima Department of Ecology Date Created 01/02/2013 Payment # Due Date 1 11/01/2015 Payment Amount Interest Principal Balance $168,197.39 $135,734.44 $32,462.95 $4,967,537.05 SubTotal 2 3 SubTotal 4 5 2015 05/01/2016 11/01/2016 2016 05/01/2017 11/01/2017 $168,197.39 $168,197.39 $168,197.39 $135,734.44 $67,440.11 $66,072.21 $32,462.95 $100,757.28 $4,866,779.77 $102,125.18 $4,764,654.59 $336,394.78 $168,197.39 $168,197.39 $133,512.32 $64,685.74 $63,280.45 $202,882.46 $103,511.65 $4,661,142.94 $104,916.94 $4,556,226.00 SubTotal 6 7 2017 05/01/2018 11/01/2018 $336,394.78 $168,197.39 $168,197.39 $127,966.19 $61,856.08 $60,412.37 $208,428.59 $106,341.31 $107,785.02 $4,449,884.69 $4,342,099.67 SubTotal 8 9 2018 05/01/2019 11/01/2019 $336,394.78 $168,197.39 $168,197.39 $122,268.45 $58,949.06 $57,465.89 $214,126.33 $109,248.33 $4,232,851.34 $110,731.50 $4,122,119.84 SubTotal 10 11 SubTotal 12 13 SubTotal 14 15 2019 05/01/2020 11/01/2020 2020 05/01/2021 11/01/2021 2021 05/01/2022 11/01/2022 ATTACHMENT 8 $336,394.78 $168,197.39 $168,197.39 $336,394.78 $168,197.39 $168,197.39 $116,414.95 $55,962.58 $54,438.86 $110,401.44 $52,894.46 $51,329.09 $219,979.83 $112,234.81 $4,009,885.03 $113,758.53 $3,896,126.50 $225,993.34 $115,302.93 $3,780,823.57 $116,868.30 $3,663,955.27 $336,394.78 $168,197.39 $168,197.39 $104,223.55 $49,742.46 $48,134.30 $232,171.23 $118,454.93 $3,545,500.34 $120,063.09 $3,425,437.25 Page 1 of 3 Schedule Number 1862 Loan Number L1300018 Department of Ecology Recipient Name City of Yakima Date Created 01/02/2013 Payment # Due Date Payment Amount Interest Principal Balance SubTotal 16 17 SubTotal 18 19 SubTotal 20 21 SubTotal 22 23 SubTotal 24 25 SubTotal 26 27 2022 05/01/2023 11/01/2023. 2023 05/01/2024 11/01/2024 2024 05/01/2025 11/01/2025 $336,394.78 $168,197.39 $168,197.39 $336,394.78 $168,197.39 $168,197.39 $336,394.78 $168,197.39 $168,197.39 $97,876.76 $46,504.30 $44,852.18 $91,356.48 $43,177.62 $41,480.33 $84,657.95 $39,760.00 $38,016.32 $238,518.02 $121,693.09 $123,345.21 $245,038.30 $125,019.77 $126,717.06 $251,736.83 $128,437.39 $130,181.07 $3,303,744.16 $3,180,398.95 $3,055,379.18 $2,928,662.12 $2,800,224.73 $2,670,043.66 2025 05/01/2026 11/01/2026 $336,394.78 $168,197.39 $168,197.39 $77,776.32 $36,248.96 $34,457.60 $258,618.46 $131,948.43 $133,739.79 $2,538,095.23 $2,404,355.44 2026 05/01/2027 11/01/2027 $336,394.78 $168,197.39 $168,197.39 $70,706.56 $32,641.93 $30,801.60 $265,688.22 $135,555.46 $137,395.79 $2,268,799.98 $2,131,404.19 SubTotal 28 29 2027 05/01/2028 11/01/2028 2028 05/01/2029 11/01/2029 $336,394.78 $168,197.39 $168,197.39 $63,443.53 $28,936.30 $27,045.66 $272,951.25 $139,261.09 $141,151.73 $1,992,143.10 $1,850,991.37 $336,394.78 $168,197.39 $168,197.39 $55,981.96 $25,129.37 $23,187.05 $280,412.82 $143,068.02 $145,010.34 $1,707,923.35 $1,562,913.01 SubTotal 30 31 SubTotal 32 33 2029 05/01/2030 11/01/2030 2030 05/01/2031 11/01/2031 $336,394.78 $168,197.39 $168,197.39 $336,394.78 $168,197.39 $168,197.39 $48,316.42 $21,218.37 $19,222.95 $40,441.32 $17,200.45 $15,150.49 $288,078.36 $146,979.02 $148,974.44 $295,953.46 $150,996.94 $153,046.90 $1,415,933.99 $1,266,959.55 $1,115,962.61 $962,915.71 SubTotal 34 35 2031 05/01/2032 11/01/2032 ATTACHMENT 8 $336,394.78 $168,197.39 $168,197.39 $32,350.94 $13,072.70 $10,966.71 $304,043.84 $155,124.69 $157,230.68 $807,791.02 $650,560.34 Page 2 of 3 Schedule Number 1862 A S S 4. Loan Number L1300018 Department of Ecology Recipient Name City of Yakima Date Created 01/02/2013 Payment # Due Date Payment Amount Interest Principal Balance SubTotal 2032 $336,394.78 $24,039.41 $312,355.37 36 05/01/2033 $168,197.39 $8,832.12 $159,365.27 $491,195.07 37 11/01/2033 $168,197.39 $6,668.55 $161,528.84 $329,666.23 SubTotal 2033 $336,394.78 $15,500.67 $320,894.11 38 05/01/2034 $168,197.39 $4,475.60 $163,721.79 $165,944.44 39 11/01/2034 $168,197.33 $2,252.89 $165,944.44 $0.00 SubTotal 2034 $336,394.72 $6,728.49 $329,666.23 Grand Total $6,559,698.15 $1,559,698.15 $5,000,000.00 ATTACHMENT 8 Page 3 of 3 Schedule Number 1862 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting of: April 16, 2013 ITEM TITLE: SUBMITTED BY: CONTACT PERSON/TELEPHONE: SUMMARY EXPLANATION: Resolution authorizing the City Manager to execute documents and agreements pursuant to a State Revolving Fund Loan offer from the Department of Ecology totaling $5,000,000 to fund Capital Improvement Projects at the City's Wastewater Treatment Plant Debbie Cook, Utilities & Engineering Director Scott Schafer, Wastewater Division Manager Ryan Anderson, Wastewater Utility Engineer/249-6813 The City received a State Revolving Fund loan offer from the Department of Ecology in the amount of $5,000,000 with an interest rate of 2.7% for 20 years to fund Phase 3 of the design and construction of the City's Methane Utilization/Efficiency Conservation project at its Wastewater Treatment Plant. The project will utilize methane gas generation to address existing and future onsite power needs. Utilizing methane gas production will reduce the need to augment fuel for boiler and dryer operations with natural gas and will eliminate wasted methane. The scope of work will include the design and construction of a new biosolids facility and dryer; producing an exceptional "Class A" biosolids product. This would significantly reduce the hauling costs and tipping fees in the estimated amount of $215,000 annually. In addition, the Class A biosolids product may be a potential revenue source in the future. The recognized loan funds are dedicated towards this capital improvement project at the City's Wastewater Treatment Plant and have already been incorporated into the Wastewater Division's 2013 Budget. The loan agreement has been enclosed for your review. Resolution X Contract: Ordinance Mail to: Other (specify) DOE State Revolving Fund Loan Agreement Contract Term: Amount: Insurance Required? No Funding Wastewater Facility Fund 478 (Budgeted) Phone: Source: Using State Revolving Fund Loan Expiration Date: APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff respectfully requests City Council approve this Resolution authorizing the City Manager to execute an agreement pursuant to a loan from the State Revolving Fund for $5,000,000 to fund capital improvement projects at the City's Wastewater Treatment Plant. BOARD/COMMISSION RECOMMENDATION: ATTACHMENTS: Click to download ❑ Resolution 2013 SRF Phase 3 ❑ 2013 SRF Agreement Pal A ❑ 2013 SRF Agreement Pal B ❑ 2013 SRF Agreement Part C ❑ 2013 SRF Agreement Part D DEPARTMENT OF ECOLOGY State of Washington AMENDMENT NO. 1 (FINAL) TO LOAN AGREEMENT NO. L1300018 BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF YAKIMA PURPOSE: To amend the Agreement between the state of Washington Department of Ecology, hereinafter referred to as `DEPARTMENT,' and the and the City of Yakima, hereinafter referred to as `RECIPIENT' for the Methane Utilization/Energy Conservation Phase 3 project. This amendment is needed to officially close out this project and deobligate all loan funds. IT IS MUTUALLY AGREED: 1. That the RECIPIENT has revised their goals for Yakima's wastewater treatment facility and will prepare a new facility plan; 2. The RECIPIENT will not pursue implementation of this Phase 3 energy efficiency projet; 3. Since no funds were spent under this agreement, all funds ($5,000,000) will be deobligated and no further action by the RECIPIENT is required. The estimated repayment schedule No. 1862 is deleted. This Amendment is effective the date of the Water Quality Program Manager's signature. IN WITNESS WHEREOF: the parties have signed this Amendment. State of Washington Department of Ecology City of Yakima r Signature Signature He. i er R. Bartlett Date Tony O'R.urke Water Quality Program Manager City Manager APPROVED AS TO FORM ONLY: ASSISTANT ATTORNEY GENERAL (Revised 05/05/09) [July 2, 2012] Date DEPARTMENT OF ECOLOGY State of Washington AMENDMENT NO. 1 [FINAL] TO LOAN NO. L1200019/L12S0019 BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY AND CITY OF YAKIMA PURPOSE: To amend the Agreement between the state of Washington Department of Ecology, hereinafter referred to as `DEPARTMENT,' and the City of Yakima, hereinafter referred to as `RECIPIENT,' for the Methane Utilization/Energy Conservation Phase 2 project. This amendment is needed to officially close out the project and deobligate remaining loan funds. IT IS MUTUALLY AGREED that the LOAN agreement is amended as follows: 1. The original scope of work has been reduced to work accomplished. The RECIPIENT has changed the goals and priorities for their wastewater treatment facility and will be updating their facility plan in the near future. 2. The original LOAN amount of $3,054,264 is decreased by $2,463,914 06 The new loan amount is $590,349.94. 3. In addition, $15,388.45 of interest has accrued from previous disbursements and is included in the final LOAN amount. 4. The final Total LOAN amount is $605,738.39 based upon the final eligible costs for the project. 5. The forgivable principal portion of the loan has been reduced by $511,293.41, from $697,150 to $185,856.59. 6. The PROJECT Initiation of Operation Date is July 1, 2014, and based on this date, LOAN repayment will begin on July 1, 2015. 7. The attached FINAL LOAN REPAYMENT SCHEDULE Number 2139 created on March 24, 2015, replaces all previous ESTIMATED LOAN REPAYMENT SCHEDULE(s). This Amendment is effective the date of the Water Quality Program Manager's signature. State of Washington Department of Ecology Loan No. L1200019, Amendment 1 [FINAL] City of Yakima IN WITNESS WHEREOF: the parties have signed this Amendment. State of Washington Department of Ecology s'1 Signature Heat -r R. Bartlett Water Quality Program Manager Approved as to form only. Assistant Attorney General Date Tony O'Rourke City Manager Page 2 of _ CITY CONTRAC r NO: .7'a/ 3 - o! e RESOLUTION NO•/%" -2v / 3 -0 v8 ---jmosialDept. of Ecology (REVISED) ATTACHMENT 8 Loan Number L1200019 Loan Amount FINAL LOAN REPAYMENT SCHEDULE Recipient Name City of Yakima Amortization Method Compound -365 D/Y Project Completion Date 12/31/2014 Initiation of Operations 07/01/2014 Term of Loan Annual Int. Rate Interest Compounded. Loan Date $605,738.39 39 Payments 2.600 % Monthly 03/23/2015 Loan Number L1200019 Recipient Name City of Yakima Department of Ecology Date Created 03/24/2015 Payment # Due Date 1 07/01/2015 SubTotal 2015 2 01/01/2016 3 07/01/2016 SubTotal 2016 4 01/01/2017 5 07/01/2017 SubTotal 2017 6 01/01/2018 7 07/01/2018 SubTotal 2018 8 01/01/2019 9 07/01/2019 SubTotal 2019 10 01/01/2020 11 07/01/2020 SubTotal 2020 12 01/01/2021 13 07/01/2021 SubTotal 2021 14 01/01/2022 15 07/01/2022 Payment Amount $19,808.54 $19,808.54 $19,808.54 $19,808.54 $39,617.08 $19,808.54 $19,808.54 $39,617.08 $19,808.54 $19,808.54 $39,617.08 $19,808.54 $19,808.54 $39,617.08 $19,808.54 $19,808.54 $39,617.08 $19,808.54 $19,808.54 $39,617.08 $19,808.54 $19,808.54 (REVISED) ATTACHMENT 8 Pate 1 of 3 Interest $4,347.25 $4,347.25 $7,715.29 $7,557.22 $15,272.51 $7,397.09 $7,234.86 $14,631.95 $7,070.52 $6,904.02 $13,974.54 $6,735.35 $6,564.48 $13,299.83 $6,391.37 $6,216.00 $12,607.37 $6,038.34 $5,858.35 $11,896.69 $5,676.02 $5,491.29 Principal Balance $15,461.29 $590,277.10 $15,461.29 $12,093.25 $578,183.85 $12,251.32 $565,932.53 $24,344.57 $12,411.45 $553,521.08 $12,573.68 $540,947.40 $24,985.13 $12,738.02 $528,209.38 $12,904.52 $515,304.86 $25,642.54 $13,073.19 $502,231.67 $13,244.06 $488,987.61 $26,317.25 $13,417.17 $475,570.44 $13,592.54 $461,977.90 $27,009.71 $13,770.20 $448,207.70 $13,950.19 $434,257.51 $27,720.39 $14,132.52 $420,124.99 $14,317.25 $405,807.74 Schedule Number 2139 Loan Number L1200019 Department of Ecology Recipient Name City of Yakima Date Created 03/24/2015 Payment # Due Date Payment Amount Interest Principal Balance SubTotal 2022 $39,617.08 $11,167.31 $28,449.77 16 01/01/2023 $19,808.54 $5,304.16 $14,504.38 $391,303.36 17 07/01/2023 $19,808.54 $5,114.58 $14,693.96 $376,609.40 SubTotal 2023 $39,617.08 $10,418.74 $29,198.34 18 01/01/2024 $19,808 54 $4,922.52 $14,886.02 $361,723.38 19 07/01/2024 $19,808 54 $4,727.95 $15,080.59 $346,642.79 SubTotal 2024 $39,617.08 $9,650.47 $29,966.61 20 01/01/2025 $19,808.54 $4,530.84 $15,277 70 $331,365.09 21 07/01/2025 $19,808.54 $4,331.15 $15,477.39 $315,887.70 SubTotal 2025 $39,617.08 $8,861.99 $30,755.09 22 01/01/2026 $19,808.54 $4,128.85 $15,679.69 $300,208.01 23 07/01/2026 $19,808.54 $3,923.90 $15,884.64 $284,323.37 SubTotal 2026 $39,617.08 $8,052.75 $31,564.33 24 01/01/2027 $19,808.54 $3,716.28 $16,092.26 $268,231.11 25 07/01/2027 $19,808.54 $3,505.95 $16,302.59 $251,928 52 SubTotal 2027 $39,617.08 $7,222.23 $32,394.85 26 01/01/2028 $19,808.54 $3,292.86 $16,515.68 $235,412 84 27 07/01/2028 $19,808.54 $3,076.99 $16,731.55 $218,681.29 SubTotal 2028 $39,617.08 $6,369.85 $33,247.23 28 01/01/2029 $19,808.54 $2,858.30 $16,950.24 $201,731.05 29 07/01/2029 $19,808.54 $2,636.75 $17,171.79 $184,559.26 SubTotal 2029 $39,617.08 $5,495.05 $34,122.03 30 01/01/2030 $19,808 54 $2,412.30 $17,396.24 $167,163.02 31 07/01/2030 $19,808 54 $2,184.92 $17,623.62 $149,539.40 SubTotal 2030 $39,617.08 $4,597.22 $35,019.86 32 01/01/2031 $19,808 54 $1,954.57 $17,853 97 $131,685.43 33 07/01/2031 $19,808 54 $1,721.21 $18,087.33 $113,598.10 SubTotal 2031 $39,617.08 $3,675.78 $35,941.30 34 01/01/2032 $19,808.54 $1,484.80 $18,323.74 $95,274.36 35 07/01/2032 $19,808.54 $1,245.30 $18,563.24 $76,711.12 (REVISED) ATTACHMENT 8 Page 2 of 3 Schedule Number 2139 Lan Number ,L1200019 Department of Ecology Recipient Name City of Yakima Date Created 03/24/2015 Payment # Due Date Payment Amount Interest Principal Balance SubTotal 2032 $39,617.08 $2,730.10 $36,886.98 36 01/01/2033 $19,808.54 $1,002.66 $18,805.88 $57,905.24 37 07/01/2033 $19,808.54 $756.86 $19,051.68 $38,853.56 SubTotal 2033 $39,617.08 $1,759.52 $37,857.56 38 01/01/2034 $19,808.54 $507.84 $19,300.70 $19,552.86 39 07/01/2034 $19,808.43 $255.57 $19,552 86 $0.00 SubTotal 2034 $39,616.97 $763.41 $38,853.56 Grand Total $772,532.95 $166,794.56 $605,738.39 (REVISED) ATTACHMENT 8 Page 3 of 3 Schedule Number 2139 CITY OF Yakima ADMINISTRATIVE POLICIES DEPARTMENT: Human Resources EFFECTIVE DATE: 0710111993 SUPERSEDES: REISSUED POLICY NUMBER: 1-2200 FORMER POLICY NUMBER: PER 500 AUTHORIZED BY: City Manager 1 HR Manager REISSUE DATE: 1110112012 POLICY: WHISTLE BLOWER REPORTING (IMPROPER GOVERNMENTAL ACTION AND PROTECTING EMPLOYEES AGAINST RETALIATION) PURPOSE The purpose of this policy is to provide a means for City employees to report improper governmental actions and protect employees against retaliation POLICY SUMMARY It is the policy of the City of Yakima to 1) require reporting by its employees of improper governmental action taken by City officers or employees, and 2) protect City employees who have reported improper Governmental actions in accordance with the City's policies and procedure(s) SCOPE AND APPLICABILITY This policy applies to all City personnel POLICY AND PROCEDURES Procedures for Reporting City employees who become aware of improper governmental actions shall raise the issue first with their supervisor The employee shall submit a written report to supervisor, or to some person designated by the supervisor, stating in detail the basis for the employee's belief that an improper governmental action has occurred Where the employee reasonably believes the improper governmental action involves his or her supervisor, the employee shall submit a written report directly with his or her department director unless the employee reasonably believes that the improper governmental action involves his or her department director In that event the employee shall submit a written report to the City Manager A required report shall be made as soon as possible In the case of an emergency, where the employee believes that damage to persons or property may result if action is not taken immediately, the employee may report the improper governmental action directly to the appropriate government agency with responsibility for investigating the improper action The supervisor, the City Manager or the City manager's designee, as the case may be, shall take prompt action to assist the city in properly investigating the report of improper governmental action City officers and employees involved in the investigation shall keep the identity of reporting employees confidential to the extent possible under law, unless the employee authorizes the disclosure of his or her identity in writing After an investigation has been completed, the employee reporting the improper governmental action shall be given a summary of the results of the investigation, except that personnel actions taken as a result of the investigation may be kept confidential City employees may report information about improper governmental action directly to the appropriate government agency responsible for investigating the improper action if the employee reasonably believes that an adequate investigation was not undertaken by the City to determine whether an improper governmental action occurred, or that insufficient action has been taken by the City to address the improper governmental action or that for other reasons the improper governmental action is likely to recur City employees who fail to make a good -faith attempt to follow the City's procedures in reporting improper governmental action shall not receive the protections provided by the City in these procedures Failure to comply with this policy may also constitute grounds for discipline including discharge Any action taken by an employee or group of employees under this policy found to be frivolous and with malicious intent may cause such employee or employees to be subject to discipline including discharge Protection Against Retaliatory Actions. City officials and employees are prohibited from taking retaliatory action against an employee because he or she has in good faith reported an improper governmental action in accordance with these policies and procedures Employees who believe that they have been retaliated against for reporting an improper governmental action should advise their supervisor, the City Manager or the City manager's designee City officials and supervisors shall take appropriate action to investigate and address complaints of retaliation If the employee's supervisor, the City Manager, or the City manager's designee, as the case may be, does not satisfactorily resolve an employee's complaint that he or she has been retaliated against in violation of this policy, the employee may obtain protection under this policy and pursuant to state law by providing a written notice to the city council that: (1) specifies the alleged retaliatory action, and (2) specifies the relief requested City employees shall provide a copy of their written charge to the City Manager no later than thirty days after the occurrence of the alleged retaliatory action The city shall respond within thirty days to the charge or retaliatory action After receiving either the response of the City or thirty days after the delivery of the charge to the City, the employee may request a hearing before a state administrative law judge to establish that a retaliatory action occurred and to obtain appropriate relief provided by law An employee seeking a hearing should deliver the request for hearing to the City Manager within the earlier of either fifteen days of delivery of the City's response to the charge of retaliatory action, or forty-five days of delivery of the charge of retaliation to the City for response Failure to comply with the previously mentioned time limits constitutes a waiver Upon receipt of request for hearing, the City shall apply within five working days to the State Office of Administrative Hearings for an adjudicative proceeding before an administrative law judge to Office of Administrative Hearings P O Box 42488, 4224 Sixth S E. Row Six, Bldg 1 Lacey, WA 98504-2488 (360) 459-6353 CITY OF Yakima ADMINISTRATIVE POLICIES DEPARTMENT: Human Resources EFFECTIVE DATE: 02/16/2016 SUPERSEDES: 02/01/2009; 03101/2012 REISSUED POLICY NUMBER: 1-2300 FORMER POLICY NUMBER: HR 1800 AUTHORIZED BY: City Manager 1 HR Director REISSUE DATE: 02/16/2016 POLICY: WORKPLACE ANTI -HARASSMENT PURPOSE The purpose of this policy is to specify fair and consistent practices for managers and employees which will promote a working environment free from unlawful harassment. POLICY SUMMARY This policy specifies the definition of harassment and the appropriate procedures and responsibilities for making, investigating and resolving harassment complaints SCOPE AND APPLICABILITY This policy impacts all departments and all employees of the City of Yakima, including temporary and probationary employees For regularly appointed employees who are represented under the terms of a collective bargaining agreement, this policy prevails except where it conflicts with the collective bargaining agreement or any memoranda or agreement signed pursuant to the collective bargaining process Where federal or state laws or regulations impose more stringent requirements than this policy, employees shall observe the requirements of those laws EDUCATION AND TRAINING The City of Yakima will provide education and training according to the following schedule 1 New Employees, within 90 days of hire, shall receive 2 hours of training on Workplace Anti -Harassment. 2 Annually, all employees will receive 1 hour of training in the form of a refresher course to review updates, revisions, etc. POLICY 1 Nondiscrimination 1 It is the policy of the City of Yakima to provide a work environment for its employees that is free from discrimination and promotes equal employment opportunity for and equitable treatment of all employees The City of Yakima will not tolerate harassment of its employees by co-workers, supervisors, managers, officials of the City, and from non -employees or other members of the public conducting business with the City or using City facilities 2. Making a Harassment Complaint A Employees shall immediately report to any management representative any allegations or complaints of harassment. Depending on an assessment of the circumstances, reporting a harassment complaint to or discussing a harassment complaint with a management representative will result in an investigation 1 Employees may make informal inquiries about legal rights and agency procedures to the City of Yakima Human Resources Department and/or other government agencies with jurisdiction 2 Employees may seek confidential counseling and referral through the City's Employee Assistance Program Contacting the Employee Assistance Program for counseling and referral does not constitute a harassment complaint. B A harassment complaint may be oral or written Where possible, it should include the date(s) the incident(s) occurred, name(s) of the individual(s) involved, name(s) of witness(es), and a description of the incident(s) It may also include a statement of the desired remedy 3. Investigating Harassment Complaints A A management representative who is told or otherwise becomes aware that harassment may be occurring is obligated to immediately report the allegation or complaint to the alleged harasser's Department Head The Department Head shall immediately inform the City Manager In the event the alleged harasser is a Department Head, the management representative shall immediately report the allegation or complaint to the City Manager 1 The City Manager or his/her designee shall, as soon as practicable, consult with the Human Resources and/or Legal Department regarding the complaint. 2 The City Manager or his/her designee shall, as soon as practicable, assess the need to prevent the alleged harasser from having contact with the alleged victim of harassment pending the outcome of an investigation B Depending on an assessment of the circumstances, the City Manager or his/her designee will designate a qualified investigator to immediately commence an investigation of the complaint. The City Manager or his/her designee will first consider using an internal investigator An internal 2 investigator may be precluded and an outside investigator retained due to the following concerns • Workload issues preventing a timely investigation • Specialized expertise in the facts, policy, or law involved • Conflicts of interest or the potential for conflicts of interest • Impartiality and/or the appearance of impartiality • Complexity of the facts, policy, or law involved • Other reasonable basis If either the complainant or the alleged harasser raises a reasonable objection to an investigator at the time the investigator is designated, the City Manager or his/her designee shall attempt to reassign the investigation In the event an outside investigator is retained, the City Manager or his/her designee will consider qualified investigators within the City of Yakima prior to considering qualified investigators elsewhere in eastern Washington and then beyond C The investigator shall complete his or her investigation as promptly as possible while ensuring that the investigation is fair, complete, and impartial The City shall endeavor to complete the investigation within 90 days The City Manager or his/her designee shall regularly make contact with the complainant to inform the complainant about the status of the investigation and receive input on issues that may be impacting the complainant as a result of the complaint. 1 The investigation shall include interviews with the complainant and the alleged harasser and any other person(s) whom the investigator has reason to believe has information directly related to the complaint or the investigation thereof 2 Where appropriate, the investigator shall assure compliance with employees' Weingarten rights, i e right to union representation, if any 3 Employees shall cooperate fully with the investigation by answering the investigator's questions honestly and completely and complying with any other reasonable requests of the investigator Failure to comply with these requirements subjects the employee to disciplinary action 4 In order to ensure the integrity of the investigation, there may be some circumstances in which employees will be asked to maintain confidentiality about the allegations, the investigation, the identity of individuals interviewed, the questions asked by the investigator, the responses provided, or any other aspect of the investigation This includes all forms of communication A determination on the need for confidentiality will be made by the City Manager, his/her designee, or the investigator, on a case-by-case basis, and the requirement of confidentiality may be imposed in instances when • Witnesses may need protection 3 • Evidence is in danger of being destroyed • Testimony is in danger of being fabricated • Confidentiality is otherwise supported by law to preserve the integrity of the investigation If the City Manager, his/her designee, or the investigator, imposes such a requirement of confidentiality, any employee who fails to maintain confidentiality may be subject to disciplinary action, up to and including termination However, in any case where confidentiality is imposed, the employee is free to discuss the matter with his or her union representative and/or attorney 5 The investigator shall prepare and provide a report of the investigation to the City Manager or his/her designee 6 To the extent that it does not hinder the investigation or the resolution of the complaint and is permitted under local, state and federal laws, management representatives and any independent investigator shall maintain the confidentiality of a harassment complaint. 7 Public records related to an investigation will be held in a confidential capacity during the pendency of an investigation to the extent permitted by law D To avoid duplication of efforts or otherwise conserve City resources, the City Manager or his/her designee may suspend or close an investigation for any reason that does not conflict with this policy, including the reason that the complainant is actively pursuing his or her complaint in another forum 4. Resolution of Harassment Complaints A. If the investigation substantiates the complaint of harassment, the City Manager or his/her designee shall make a determination regarding the appropriate resolution, including disciplinary action Before making a decision to impose disciplinary action, the City Manager or his/her designee shall ensure that the alleged harasser has been given the opportunity to review the results of the investigation, has been told of the evidence obtained, and has had an opportunity to provide a response to the outcome of the investigation The City Manager or his/her designee shall take the alleged harasser's response into account before taking final action on the complaint. B In addition to any disciplinary action taken, substantiated complaints may be referenced in the alleged harasser's first performance evaluation following the conclusion of the investigation C If during the course of the investigation, the investigator determines that the allegation or complaint of harassment or discrimination was reported to a management representative and that management representative failed to immediately report the allegation or complaint, the City Manager or his/her designee shall investigate and take appropriate action against the 4 management representative, including disciplinary action if appropriate In addition, the failure to report may be referenced in the management representative's first performance evaluation following completion of the investigation D Following determination of a substantiated complaint of harassment, the Human Resources Director or his/her designee should inquire of the complainant at a frequency and for whatever duration is appropriate to ensure that the harassment has not resumed and that the complainant has not been retaliated against for making a complaint. 5. Retaliation Prohibited Retaliation against a City employee for reporting allegations of harassment, bringing a complaint of harassment, providing honest information regarding a complaint of harassment, or participating honestly in an investigation of a complaint of harassment is prohibited and shall not be tolerated and may be grounds for discipline, up to and including termination of employment. This policy does not constitute or imply a contract, agreement, promise or guarantee of employment or continued employment. The City reserves the right to change this policy at any time DEFINITIONS A. "Harassment" shall mean verbal or physical conduct toward an individual because of his or her race, color, religion, creed, sex, sexual orientation, national origin, ancestry, age, disability, marital status, or honorably discharged veteran or military status, when such harassing conduct has the purpose or effect of unreasonably interfering with an individual's work performance or otherwise adversely affects an individual's employment opportunities The term includes sexual harassment. The term also includes epithets, slurs, and negative stereotyping, threatening, intimidating or hostile acts, or written or graphic materials that denigrate or show hostility or aversion that is placed on walls, bulletin boards, electronic bulletin boards, e- mail or otherwise placed or circulated in the workplace, when such actions or materials are related to or directed at an individual or group because of race, color, religion, creed, sex, sexual orientation, national origin, ancestry, age, disability, marital status, or honorably discharged veteran or military status B "Harassment Complaint" shall mean any oral or written complaint alleging an incident or incidents of harassment made by an employee to a management representative, or any information obtained by a management representative indicating that harassment has occurred or may be occurring in the workplace C "Hostile Working Environment" shall mean harassment of such a severe or pervasive nature that it alters the conditions of the victim's employment and creates an abusive working environment. 5 D "Management Representative" shall mean any individual working at or above the level of supervisor who is responsible for directing the work of employees and who exercises independent judgment with respect to the direction of such work. E. "Retaliation" shall mean materially adverse action that is harmful to the point it could dissuade a reasonable worker from making or supporting a harassment complaint. F "Sexual Harassment" shall mean deliberate or repeated behavior of a sexual nature that is unwelcome and unwanted It can be verbal, non-verbal, or physical, and includes such behaviors as solicitation of sexual favors, discussing sexual activities, inappropriate commenting on physical appearance, using crude or offensive language, displaying sexually explicit or suggestive pictures, using indecent gestures, repeated invitations for dates after being told no, unwelcome touching, and sexual assault. G "Sexual Orientation" shall mean heterosexuality, homosexuality, bisexuality, and gender expression or identity As used in this definition, "gender expression or identity" means having or being perceived as having a gender identity, self-image, appearance, behavior, or expression, whether or not that gender identity, self-image, appearance, behavior, or expression is different from that traditionally associated with the sex assigned to that person at birth REFERENCE DOCUMENTS AND PROCEDURES • City of Yakima Administrative Code Policy 1-800, Equal Employment Opportunity, (formerly HR 1801, Equal Employment Opportunity, 2/1/2009) 6 CITY OF Yakima ADMINISTRATIVE POLICIES DEPARTMENT: Human Resources EFFECTIVE DATE: 02101/2009 SUPERSEDES: REISSUED POLICY NUMBER: 1-800 FORMER POLICY NUMBER: PER 1801 AUTHORIZED BY: City Manager/ HR Manager REISSUE DATE: 11101/2012 POLICY: EQUAL EMPLOYMENT OPPORTUNITY PURPOSE The purpose of this policy is to ensure a working environment free from unlawful discrimination SCOPE AND APPLICABILITY This policy impacts all Departments of the City of Yakima POLICY AND PROCEDURES It is the policy of the City of Yakima to provide equal employment opportunity to employees and applicants for employment without regard to age, sex, race, creed, religion, color, national origin, marital status, disability, honorably discharged veteran or military status, pregnancy, sexual orientation, and any other classification protected under federal, state, or local law Equal employment opportunity applies to all terms, conditions, and privileges of employment, including hiring, promotion, transfer, compensation, benefits, layoff, training, discipline, and discharge DEFINITIONS Sexual Orientation — is defined as in Washington State law See RCW 49 60 040(15), defining sexual orientation as "heterosexuality, homosexuality, bisexuality, and gender expression or identity As used in this definition, `gender expression or identity' means having or being perceived as having a gender identity, self image, appearance, behavior, or expression, whether or not that gender identity, self-image, appearance, behavior, or expression is different from that traditionally associated with the sex assigned to that person at birth " REFERENCE DOCUMENTS AND PROCEDURES See also Administrative Code Policy 1-2400, Workplace Anti -Harassment (formerly HR 1800, Workplace Anti -Harassment, 2/1/2009)