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V SUMMARY AGENDA
Mayor Jim white KENT CITY COUNCIL MEETING
�..- March 16, 1999
Council Chambers
7 : 00 p.m.
MAYOR: Jim White COUNCILMEMBERS : Leona Orr, President
Sandy Amodt Tom Brotherton Tim Clark
Connie Epperly Judy Woods Rico Yingling
*******************************************************************
1 . CALL TO ORDER/FLAG SALUTE .J AC. j!�r 1,01)
2 . ROLL CALL
3 . CHANGES TO AGENDA
A. FROM COUNCIL, ADMINISTRATION, OR STAFF
B. FROM THE PUBLIC
4 . PUBLIC COMMUNICATIONS
A. Proclamation - Absolutely Incredible Kid Day
B. Castlereagh, Northern Ireland Delegation
�Sttate of the City Address
5 . PUBLIC HEARINGS
None
6 . CONSENT CALENDAR
A. Approval of Minutes
B. Approval of Bills
C. LID 349, S .E. 223rd Sanitary Sewers, Final Assessment
Roll - Ordinance 3 LI 4 6
D. UPRR Toys R Us Spur Franchise Ordinance - Introduction
E. Minicomputer Purchase - Authorization
F. Premera Blue Cross Contract - Approval
G. Mental Health Housing Foundation Sewer Extension - Bill
of Sale
H. Sewer Rate Increase - Authorization
I . King County Water District No. 111 Franchise
Agreement - Ordinance 3 N 4'7
7 . OTHER BUSINESS 3444
A. 1999 Councilmanic Bonds, Bond Ordinance and Purchase
Contract
B. Emerald Ridge II Final Plat 3g0i
C. East Hill Sewer Interceptor - Condemnation Ordinance
8 . BIDS
None
(continued next page)
�...............,.....
SUMMARY AGENDA CONTINUED
9 . REPORTS FROM STANDING COMMITTEES AND STAFF
10 . REPORTS FROM SPECIAL COMMITTEES
11 . CONTINUED COMMUNICATIONS
12 EXECUTIVE SESSION
None
13 . ADJOURNMENT
NOTE: A copy of the full agenda packet is available for perusal in
the City Clerk' s Office and the Kent Library.
An explanation of the agenda format is given on the back of this
page.
Any person requiring a disability accommodation should contact the
City in advance for more information. For TDD relay service call
1-800-635-9993 or the City of Kent (253) 854-6587 .
CHANGES TO THE AGENDA
Citizens wishing to address the Council will, at this time,
make known the subject of interest, so all may be properly
heard.
A) FROM COUNCIL, ADMINISTRATION, OR STAFF
B) FROM THE PUBLIC
�r
PUBLIC COMMUNICATIONS
A) Proclamation —Absolutely Incredible Kid Day
B) Castlereagh, Northern Ireland Delegation
C) State of the City Address
CONSENT CALENDAR
6 . City Council Action:
Councilmember moves, Councilmember
seconds that Consent Calendar Items A through I be approved.
Discussion ,�,,/�
Action r Y e-
6A. Approval of Minutes .
Approval of the minutes of the regular Council meeting of
March 2 , 1999 .
6B. Approval of Bills .
ti-- Approval of payment of the bills received through February 26
and paid on February 26, after auditing by the Operations
Committee on March 2 , 1999 .
Approval of checks issued for vouchers :
Date Check Numbers Amount
2/26/99 213196-213576 $ 229, 317 . 70
2/12/99 213577-214032 2 , 083 , 109 . 76
$2 , 312 , 427 .46
Council Agenda
Item No. 6 A-B
Kent, Washington
March 2 , 1999
Regular meeting of the Kent City Council was called to order at
7 : 00 p.m. by Mayor White . Present : Councilmembers Amodt,
Brotherton, Clark, Epperly, Orr, Woods and Yingling, Operations
Director/Chief of Staff McFall, City Attorney Lubovich, Police
Chief Crawford, Fire Chief Angelo, Planning Director Harris,
Public Works Director Wickstrom, Finance Director Miller, and
Parks Director Hodgson. Approximately 50 people were in
attendance at the meeting.
CHANGES TO The following items were added to the agenda:
THE AGENDA Legislative Update, Regional Issues, Potential
Litigation, and Diversity Efforts .
PUBLIC Boy Scouts. Mayor White welcomed Boy Scout
COMMUNICATIONS Troop 462 and noted that they are working on
merit badges in Citizenship in the Community.
;gent Arts Commission 1999 Grant Recipients.
Mayor White presented certificates to the
following Arts Commission Grant Recipients :
Northwest Renaissance Poets, Performers and
` ✓ Publishers, African American Cultural Center,
Chinese Arts & Music Association, Rainier
Symphony, Rainier Chorale, Kent Senior Activity
Center, Kent Parks & Recreation Specialized
Recreation, Kent Downtown Market and Kent
Downtown Partnership. Representatives from the
groups expressed their appreciation.
Zloyee of the Month. The Mayor announced that
Melanie Manning, Administrative Secretary at Kent
Commons, has been chosen as Employee of the Month
for March. He noted that in addition to her
regular workload, Ms . Manning serves on numerous
committees in the City. Superintendent Lori
Hogan commended Manning on her competence,
knowledge and willingness to take on new
responsibilities, and offered her congratula-
tions . Mayor White then presented Manning with
the Employee of the Month plaque.
(ADDED ITEM)
Legislative Update. Dena Laurent, Government
Affairs Manager, noted that two of the issues the
1
Kent City Council Minutes March 2, 1999
PUBLIC City is working on are protecting fish and fish
COMMUNICATIONS habitat along the waterways, and meeting housing
growth targets. She gave an update on these
issues and offered to answer questions from
Councilmembers at any time .
(ADDED ITEM)
Regional Issues - Suburban Cities Association.
Laurent stated that the transition of Bellevue
out of the Suburban Cities Association is appro-
priate for Bellevue and the impact on the
Association is minimal .
(ADDED ITEM)
Regional Issues Emergency Medical Services
McFall noted that he and Fire Chief Angelo are
members of a task force charged with developing
alternative ways of funding emergency medical
services . He said it appears that recommenda-
tions will involve some sort of property tax
levy, lengthening the allowable levy time period
from six years to ten years, voting on a perma-
nent levy, changing the authority of cities with
populations over 50, 000, charging a fee for
services, and having King County cover regional
services . He noted that he has provided input
as to the City' s opinion, and asked how
Councilmembers would like him to proceed. Woods
thanked McFall for his efforts and urged him to
hold his ground. Orr opined that this critical
issue should not have to go to the voters, but
should be at the top of the budget priority list .
McFall said that he will update the Council again
in the future .
CONSENT ORR MOVED that Consent Calendar Items A through H
CALENDAR be approved, including an amendment to Item E
correcting the date of the meeting. Epperly
seconded and the motion carried.
MINUTES (CONSENT CALENDAR - ITEM 6A)
AgRroval of Minutes. APPROVAL of the minutes of
the regular Council meeting of February 16, 1999 .
2
Kent City Council Minutes March 2 , 1999
HEALTH & (CONSENT CALENDAR - ITEM 6G)
SANITATION Canterbury Greens. ACCEPTANCE of the Bill of
Sale for Canterbury Greens submitted by Southey &
Associates for continuous operation and mainte-
nance of 1, 168 feet of sanitary sewers, 780 feet
of street improvements and 1, 335 feet of storm
sewers and release of bonds after the expiration
period, as recommended by the Public Works
Director. The project is located at 125th Avenue
S .E. & S .E. 264th Street .
(CONSENT CALENDAR - ITEM 6H)
Julie' s Addition. ACCEPTANCE of the Bill of Sale
for Julie ' s Addition submitted by William E . Ruth
for continuous operation and maintenance of 184
feet of watermain, 335 feet of sanitary sewers,
365 feet of street improvements and 336 feet of
storm sewers and release of bonds after the
expiration period, as recommended by the Public
Works Director. The project is located at S .E.
264th Pl . and 114th Ave. S .E.
WATER (CONSENT CALENDAR - ITEM 6C)
Kina County Water District No. 111 Franchise
Agreement Ordinance. INTRODUCTION of King County
Water District #111 Ordinance/Franchise Agreement
which grants Water District #111 authority to
operate and maintain a domestic water supply
system for Water District #ill' s customers
residing within the City limits of Kent .
Pursuant to RCW 35A.47 . 040, franchises cannot be
adopted on the day of introduction, therefore
this franchise will be submitted for adoption at
a later date .
(CONSENT CALENDAR - ITEM 6F)
Kentview MPUD Amendment To Water Service Area.
AUTHORIZATION for the Public Works Director to
sign the Kentview MPUD Amendment to Water Service
Area which authorizes Highline Water District to
accept the Kentview and adjacent miscellaneous
properties into their service area, as recom-
mended by the Public Works/Planning Committee,
3
Kent City Council Minutes March 2 , 1999
WATER and upon the City Attorney' s concurrence with the
language therein.
SEWER (PUBLIC HEARINGS - ITEM 5A)
LID 349, S E 223rd Sanitary Sewers, Final
Assessment Roll. This date has been set for the
public hearing on the confirmation of the final
assessment roll for LID 349 . Public Works
Director Wickstrom showed a map of the area and
explained that the LID is in unincorporated King
County. He noted that there are 22 properties
and that the LID was created in January. He
stated that there has been a 19% increase in cost
and that the City will pay the $43 , 086 . 19 addi-
tional cost . He also explained that property
owners would have to sign annexation covenants
upon connection to sewers, and that there is a
mandatory sewer connection requirement .
Mayor White opened the public hearing. There
were no comments from the audience and ORR MOVED ,
to close the hearing. Woods seconded and the
motion carried.
CLARK MOVED to direct the City Attorney to pre-
pare the necessary ordinance for the final
assessment roll for LID 349, S .E. 223rd Street
Sanitary Sewers . Epperly seconded. Clark
explained that although costs have risen, the
system has failed and must be replaced. Yingling
stated that it is appropriate that the City pay
the addition cost of the project . Clark' s motion
then carried.
COMPREHENSIVE (OTHER BUSINESS - ITEM 7C)
PLAN Co=rehensive Plan and Zoning Code Amendment
CPA-98-2, Proposal L. This matter was continued
at the City Council meeting of February 16, 1999,
when staff stated that the Land Use and Planning
Board minutes of November 30 , 1998, were
incorrect . After review of the video tape, it
was determined that the minutes of that meeting
are correct . The Planning Department requests
that the land use map designation be amended from
SF-8 , Single Family Residential , 8 dwelling units
4
Kent City Council Minutes March 2 , 1999
COMPREHENSIVE per acre, to Mixed Use. The property is located
PLAN north of James Street, between Fourth and Fifth
Avenue S . , and is approximately 5 . 93 acres in
size. The Land Use and Planning Board recommends
denial of this request .
Matt Jackson of the Planning Department displayed
a map of the area and noted that this request is
being brought forward by the Planning Department
in order to implement one of the sections of the
Downtown Strategic Action Plan.
CLARK MOVED to approve the Land Use and Planning
Board' s recommendation of denial of CPA-98-2 (1)
of the proposed 1998 Comprehensive Plan
Amendment . Woods seconded and the motion
carried.
PLATS (CONSENT CALENDAR - ITEM 6E)
Rmarald Ridge II Final Plat FSU-98-10 . SET
March 16, 1999, as the date for a public meeting
`r✓ to consider a final plat application by Tom
O' Connor for the Emerald Ridge II final plat .
The subdivision is 3 . 35 acres in size and is
located at 102nd Place SE and SE 244th Street .
The City Council approved the Emerald Ridge II
(aka Kay) preliminary plat on January 19, 1999 .
(OTHER BUSINESS - ITEM 7A)
South Ridge Preliminary Plat SU-98-4 This date
has been set to consider the Hearing Examiner' s
recommendation of approval with conditions of the
South Ridge Preliminary Plat application.
Brotherton expressed concern about high speed
traffic on S . 282nd between 132nd and 144th.
Matt Jackson of the Planning Department explained
u h streets are necessary to alleviate
that through Y
9
cul de sacs and that the
caused b ,
problems Y
developers plat the streets in their develop-
ments . Wickstrom pointed out that there are
natural restrictions in the area and that
circulation is needed for emergency services.
Fire Chief Angelo explained that several risks
are involved, such as emergency response time and
5
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Kent City Council Minutes March 2 , 1999
PLATS wear and tear on equipment due to speed bumps,
and that decisions regarding the risks must be
made . Yingling suggested that the mobility of
pedestrians be considered in future plats . Upon
Amodt ' s question, Wickstrom described the wet-
lands in the area and said that there will not be
other cross streets . He noted that traffic
calming devices could be added to the project .
He explained that the developers are providing
adequate buffers according to the ordinance .
Upon Orr' s suggestion of traffic circles, the
City Attorney noted that hearings on this plat
have been held and McFall said that as long as
Council stays within the layout approved by the
Hearing Examiner, conditions requiring traffic
calming devices on 288th Street would be appro-
priate . He suggested that Engineering work with
the developer to identify what type of devices .
Epperly suggested that Fire and Police personnel
be involved in the decision as well .
CLARK MOVED to modify the Hearing Examiner' s
recommendation of approval with conditions for
the application of South Ridge Preliminary Plat,
by requesting appropriate traffic restrictions on
282nd to reduce high speed concerns . Woods
seconded.
A resident of S . 282nd Street voiced concerns
about safety on 144th Avenue and about drainage.
Wickstrom and Joseph McGee of Baseline
Engineering both spoke about the traffic, wet-
lands, access and site distance. McGee agreed to
work with the City regarding the concerns, and
pointed out that they are in conformance with
City and State requirements . Amodt voiced
opposition to the plat, citing concern about the
wetlands . After further questions from Yingling,
Amodt and Epperly were answered, Clark' s motion
carried with Amodt opposed.
(OTHER BUSINESS - ITEM 7B)
Meridian Ridge Preliminary Plat SU-98-8. This
date has been set to consider the Hearing
Examiner' s recommendation of approval with
6
Kent City Council Minutes March 2 , 1999
PLATS conditions of the Meridian Ridge Preliminary Plat
application.
Wickstrom answered Brotherton' s questions regard-
ing the wetland, access and developable land in
the area. Mayor White pointed out that the City
has ordinances and long range plans in effect
giving staff and the development community
direction on how to develop pieces of land. Orr
pointed out that in the past developers have been
allowed to do the developments as they see fit
and said she is not eager to open up a lot of
streets . Brotherton explained that his concern
is high speed traffic .
CLARK MOVED to approve the Hearing Examiner' s
recommendation of approval with conditions of the
application of Meridian Ridge Preliminary Plat .
Woods seconded and the motion carried.
VISION 2020 (ADDED ITEM)
``+✓ AWARDS Vision 2020 Awards . Brotherton announced that he
had attended the Livability Forum hosted by Vice
President Gore and noted that PSRC gives awards
for ideas which enhance livability in the area.
He described the winning projects and said the
key to success is teamwork between cities, school
districts, developers, and builders . He sug-
gested that department heads meet with some of
these award-winning people to see how Kent ' s
rules could be changed to make it possible to
build more livable developments in Kent . Upon
Orr' s suggestion, it was agreed that this is an
appropriate topic for the upcoming retreat.
CARD ROOMS (PUBLIC HEARINGS - ITEM 5B)
Card Room Moratorium, On February 2 , 1999, the
City Council passed Resolution No. 1525 imposing
a moratorium on the acceptance of applications
for the issuance of any business license or any
building, land use, or development permit or
approval for food or drink establishments con-
ducting commercial, stimulant card games . State
law authorizes cities to adopt moratoriums,
provided a public hearing is held within sixty
7
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..
Kent City Council Minutes March 2, 1999
CARD ROOMS (60) days of adoption. This date has been set for
a public hearing on the matter. The Council may
either continue the moratorium for the full six
month term or terminate the moratorium.
City Attorney Lubovich stated that if the
moratorium is continued, staff will discuss
their research and the options available with the
appropriate Council committees . He emphasized
that this issue deals only with commercialized
card room operations .
The Mayor opened the public hearing. Darrell
Duffey, 4011 S . 166th Street, SeaTac, owner of
Ruby' s Casino, spoke in favor of the moratorium.
He requested that the City allow his business to
operate from 9 : 00 a.m. to 5 : 00 a.m. , noting that
if the study indicates problems with being open
from 2 : 00 a.m. to 5 : 00 a.m. that he would agree
to be closed during that time. He explained that
being closed during that time would greatly
affect his revenue, which in turn would affect
the City' s revenue in tax dollars . He also noted
that safety and law enforcement are regulated by
the Gambling Commission. He asked for Council ' s
support in letting him operate on the original
schedule so that there is no conflict with the
study. Upon Clark' s question, Duffey provided
the names of the principals of Aztec Development .
There were no further comments from the audience
and ORR MOVED to close the public hearing. Woods
seconded and the motion carried.
CLARK MOVED to pass Resolution No. 1526 adopt-
ing findings and continuing the moratorium
established in Resolution No. 1525 passed on
February 2 , 1999, relating to food or drink
establishments conducting commercial stimulant
card games . Woods seconded. Mayor White noted
for Clark that the record regarding establish-
ments open after 2 : 00 a.m. is not good, which is
why he is opposed to being open after that time .
He pointed out that other cities have issued
moratoriums and outright bans . The Mayor voiced
8
„........ ,
Kent City Council Minutes March 2 , 1999
CARD ROOMS concern that Kent would become the magnet for
gambling in South King County if action is not
taken, which is not the image he and the Council
have worked to develop. Clark' s motion then
carried.
PUBLIC (CONSENT CALENDAR - ITEM 6D)
DEVELOPMENT Kent Public Development Authority Debt Security.
AUTHORITY PASSAGE of Resolution No. 1527, which confirms
the City' s previous commitment to guaranty the
loan to be obtained by the Public Development
Authority in order to redevelop the landmark
Lumberman' s Barn as the permanent site for the
Kent Downtown Market . This guarantee obligation
is conditioned on the City' s prior approval of
the loan' s terms and conditions .
DIVERSITY (ADDED ITEM)
Diversity. Arthur Harvey, 16619 S .E. 251st,
Kent, President of Kent Citizens Association,
asked for feedback and information on the City' s
�.✓ diversity efforts . Mayor White stated that the
information would be provided to Mr. Harvey by
mail .
TECHNOLOGY (BIDS - ITEM 8A)
HP Netservers Purchase Agreement, On January 5,
1999, Council authorized a contract with Sarcom/
NovaQuest to assist the City with the design and
implementation of Microsoft Exchange. This
related server hardware bid award is the second
part of the project . A Request for Quote for HP
Netservers and related warranties was published
and six vendors responded. Unisoft was the
lowest bidder with a total bid price of
$93 , 192 . 72 . The City has decided not to
purchase the ATL DLT tape drive identified on
the quote, making the total award to Unisoft
$83 , 150 .48 . Network Manager Joe Lorenz noted for
Clark that a drive which will minimize the down
time put on the server during back up hours will
be acquired.
WOODS MOVED to authorize the Mayor to sign a
purchase agreement with Unisoft for the purchase
9
Kent City Council Minutes March 2 , 1999
TECHNOLOGY of HP Netservers and related warranties in the
amount of $83 , 150 .48, subject to City Attorney
approval . Amodt seconded and the motion carried.
FINANCE (CONSENT CALENDAR - ITEM 6B)
Approval of Hills. APPROVAL of payment of the
bills received through February 12 and paid on
February 12, 1999 after auditing by the
Operations Committee on February 23 , 1999 .
Approval of checks issued for vouchers :
Date Check Numbers Amount
2/12/99 212588-212816 $ 740, 985 .44
2/12/99 212817-213195 2 , 520 , 039 .49
$3 , 261, 024 . 93
Approval of checks issued for tayroll for
February 1 through February 15 and paid on
February 19, 1999 :
Date Check Numbers Amount
2/19/99 Checks 233678-234004 $ 256, 694 . 57
2/19/99 Advices 76380-76947 803 , 193 . 16
$1, 059, 887 . 73
REPORTS Council President. Orr reminded Councilmembers
to contact the Council Secretary regarding
attendance at the March 10 Suburban Cities
dinner.
Orr presented the Mayor with a book entitled
Leonid Kuchma• Personality and President, which
was received from the Ukrainian ambassador.
Mayor White noted that the book will be put in
the Council Office temporarily, and will then be
kept with other Sister Cities information.
Operations Committee. Woods noted that the next
meeting will be held at 3 : 30 p.m. on March 16 .
Public Works and Planning Committee. Clark noted
that the next meeting will be held on March 15 at
3 :30 p.m.
10
...... .............
Kent City Council Minutes March 2 , 1999
REPORTS Parks Committee Woods noted that the next
meeting will be at 4 :30 p.m. on March 16 .
EXECUTIVE At 8 : 50 p.m. , McFall reminded Council of an
SESSION executive session of approximately 30 minutes to
discuss property acquisition and potential
litigation. The meeting reconvened at 9 :30 p.m.
(Property WOODS MOVED to approve Addendum Four to the
Acquisition) Purchase and Sale Agreement between Columbia
Nursery and the City of Kent for the proposed
property acquisition extending closing and time
to comply with conditions of agreement, and
further to authorize the Mayor to sign any and
all documents necessary to close the purchase
pursuant to terms substantially similar to those
set forth in the agreement . Orr seconded and the
motion carried.
ADJOURNMENT The meeting adjourned at 9 :40 p.m.
Brenda Ja a CMC
City Cle
11
Kent City Council Meeting
Date March 16, 1999
Category Consent Calendar
1 . SUBJECT: LID 349, S .E. 223rd SANITARY SEWERS, FINAL
ASSESSMENT ROLL - ORDINANCE
2 . SUMMARY STATEMENT: As recommended by Council, adoption of
Ordinance No. establishing the final assessment roll for
LID 349, S .E. 223rd Street Sanitary Sewers .
3 . EXHIBITS: Ordinance
4 . RECOMMENDED BY: Council (3/2/99)
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6C
ORDINANCE NO.
AN ORDINANCE of the City of Kent, Washington, approving and
confirming the assessments and assessment roll of Local Improvement
District No. 349 for the construction of an 8"sanitary sewer system along SE
223rd Street from approximately 113th Avenue SE to I l4th Place SE, with
6" side sewer stubs and related improvements, as provided by Ordinance
No. 3388, and levying and assessing a part of the cost and expense thereof
against the several lots,tracts,parcels of land and other property as shown on
the assessment roll.
WHEREAS,the assessment roll levying the special assessments against the property
located in Local Improvement District No. 349 in the City of Kent, Washington(the"City"),
has been filed with the City Clerk as provided by law;and
WHEREAS, notice of the time and place of hearing on the assessment roll and for
making objections and protests to the roll was published at and for the time and in the
manner provided by law fixing the time and place of hearing thereon before the City Council
for the 2nd day of March, 1999,at the hour of 7:00 p.m., local time,in the Council Chambers
in the City Hall,Kent, Washington,and further notice thereof was mailed by the City Clerk
to each property owner shown on the roll; and
WHEREAS,at the time and place fixed and designated in the notice the hearing was
received were considered and all persons appearing at the hearing
held, all written protests
who wished to be heard were heard, and the City Council, sitting and acting as a Board of
Equalization for the purpose of considering the roll and the special benefits to be received
Q
SONOM
,02 1 LID 349 Final Assessment Roll
by each lot, parcel and tract of land shown upon such roll, including the increase and
enhancement of the fair market value of each such parcel of land by reason of the
improvement, and considered all such protests; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES
HEREBY ORDAIN AS FOLLOWS:
SECTION]. Roll Confirmation. The assessments and assessment roll of Local
Improvement District No. 349, which has been created and established for the purpose of
constructing an 8" sanitary sewer system along SE 223'd Street from approximately 113'h
Avenue SE to 114'h Place SE,with 6"side sewer stubs and related improvements,as provided
by Ordinance No. 3388, as the same now stand shall be and the same are approved and
confirmed in all things and respects in the total amount of$222,838.
SECTION 2. Special Benefrt. Each of the lots, tracts, parcels of land and other
property shown upon the assessment roll is determined and declared to be specially benefited
by this improvement in at least the amount charged against the same, and the assessment
appearing against the same is in proportion to the several assessments appearing upon the
roll. There is levied and assessed against each lot,tract or parcel of land and other property
appearing upon the roll the amount finally charged against the same thereon.
SECTION3. Notice of Roll. The assessment roll as approved and confirmed shall
be filed with the Finance Division Director of the City for collection and the Finance
Division Director is authorized and directed to publish notice as required by law stating that
the roll is in her hands for collection and that payment of any assessment thereon or any
portion of such assessment can be made at any time within 30 days from the date of first
publication of such notice without penalty, interest or cost, and that thereafter the sum
..02 2 LID 349 Final Assessment Roll
remaining unpaid may be paid in ten equal annual installments. The estimated interest rate
is stated to be 6.50% per annum, with the exact interest rate to be fixed in the ordinance
authorizing the issuance and sale of the local improvement bonds for Local Improvement
District No. 349. The first installment of assessments on the assessment roll shall become
due and payable during the 30-day period succeeding the date one year after the date of fast
publication by the Finance Division Director of notice that the assessment roll is in her hands
for collection and annually thereafter each succeeding installment shall become due and
payable in like manner. If the whole or any portion of the assessment remains unpaid after
the first 30-day period, interest upon the whole unpaid sum shall be charged at the rate as
determined above, and each year thereafter one of the installments,together with interest due
on the unpaid balance, shall be collected. Any installment not paid prior to expiration of the
30-day period during which such installment is due and payable shall thereupon become
delinquent. Each delinquent installment shall be subject, at the time of delinquency, to a
charge of 9%penalty levied on both principal and interest due upon that installment, and all
delinquent installments also shall be charged interest at the rate as determined above. The
collection of such delinquent installments shall be enforced in the manner provided by law.
SECTION 4: Severability. If any one or more sections, subsections, or sentences
of this ordinance are held to be unconstitutional or invalid, such decision shall not affect the
validity of the remaining portion of this ordinance and the same shall remain in full force and
effect.
SOMOM.02 3 LID 349 Final Assessment Roll
.............. ..
SECTIONS: Effective Date. This ordinance shall take effect and be in force five(5)
days from and after its passage, approval and publication as provided by law.
JIM WHITE, MAYOR
ATTEST:
BRENDA JACOBER, CITY CLERK
APPROVED AS FORM:
SpecKdl Codhiel and Bond Counsel for the City
PASSED: day of , 1999.
APPROVED: day of , 1999.
PUBLISHED: day of , 1999.
I hereby certify that this is a true copy of Ordinance No. ,passed by
the City Council of the City of Kent, Washington, and approved by the Mayor of the City
of Kent as hereon indicated.
(SEAL)
BRENDA JACOBER, CITY CLERK
5W80M.0 4 LID 349 Final Assessment Roll
I
Kent City Council Meeting
Date March 16 , 1999
Category Consent Calendar
1 . SUBJECT: UPRR TOYS R US SPUR FRANCHISE ORDINANCE -
INTRODUCTION
2 . SUMMARY STATEMENT: The City and Union Pacific Railroad
Company have been through extensive negotiations and litigation
over the terms and conditions of a prior franchise agreement
granted by the City that has allowed UPRR to cross 196th Street
near the Toys 'R Us warehouse, just east of the Green River.
All parties have finally agreed on renewal franchise terms, as
stated in the attached ordinance .
Under state law, a franchise cannot be passed by the Council
until five days after its initial introduction. This franchise
must also be published. Accordingly, the franchise is being
introduced at this meeting, and will be scheduled for final
passage at the next regular Council meeting on April 6, 1999 .
3 . EXHIBITS: Ordinance
4 . RECOMMENDED BY: Public Works/Planning Committee
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6D
ORDINANCE NO.
AN ORDINANCE of the City Council of the
City of Kent, Washington, granting to the Union Pacific
Railroad Company, a Delaware corporation, its
successors and assigns,the right,privilege and authority
to construct, maintain and operate a railroad spur track
upon and across South 196th Street in the City of Kent.
King County, Washington.
WHEREAS, pursuant to the terms of a franchise ordinance of the Cite
of Kent (Ordinance 2309), passed on September 8, 1981, the Union Pacific Railroad
Company, a Delaware Corporation ("UPRR") constructed, maintained and operated a
railroad spur track at common grade upon and across South 196th Street in the City of
Kent, the centerline of said street in the North 1/2 of Section 2, Township 22 North,
Range 4 East, W.M., located in King County, Washington; and
WHEREAS, Ordinance 2309, by the terms of its Section 10, was
effective as a franchise grant to UPRR for ten years; and
WHEREAS, on or about October 13, 1991, the franchise granted in
Ordinance 2309 expired by the terms of Section 10 of that Ordinance; and
WHEREAS. the City of Kent is willing to grant a franchise for a
period of twenty years from the date of passage of this Ordinance, on the terms set
forth herein; and
WHEREAS, passage of this franchise ordinance is now appropriate;
and
WHEREAS, a separation of grade of said crossing is neither
practicable or justified;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The foregoing recitals are incorporated into this
Ordinance as if fully set forth herein.
SECTION 2. The City of Kent, Washington, ("City") grants to the
Union Pacific Railroad Company, a Delaware Corporation, its successors and assigns
("UPRR"), subject to all conditions contained in this ordinance, the franchise and
privilege of maintaining and operating one railroad spur track and crossing at
common grade upon and across South 196th Street in the City of Kent, Washington,
at the location described in Exhibit A (the "franchise area"), provided that the
maintenance and operation of this track and crossing within the franchise area shall be
performed in a manner consistent with the terms and conditions of this franchise
ordinance and satisfactory to the City's Public Works Director and any other
applicable authority.
SECTION 3. UPRR, throughout the twenty-year franchise term and
at no cost to the City, shall maintain and operate the track and crossing within the
franchise area subject to the following:
(a) UPRR shall pay the entire cost and expense of maintaining, and/or
operating said track within the limits of the street as it now exists or as it may be
changed from time to time. However, this franchise shall not prevent UPRR from
charging any other party to which UPRR may have granted or assigned an interest in
this track, crossing or franchise all or a portion of the cost of maintaining, and/or
operating said track.
(b) The City does not presently plan or anticipate any modifications to
the street that would require alteration or reconstruction of the tracks or crossing,
except for modifications presently underway (and planned for completion in the
vicinity of the crossing in the Spring of 1999) as part of the City's South 196`h Street
Project. Union Pacific , responsible for all costs of track and crossing modifications
in connection with the .y's South 196" Street Project, except that this provision
other art including its only customer.
shall not prevent UPRR .rom charging any o party, g
Toys "R" Us, for all or a part of such costs: it is the City's understanding that Union
Pacific has in fact reached an agreement with Toys "R" Us pursuant to which Toys
- 2- •
"R" Us is paying a portion of such costs. To the extent there occur any other
,,. modifications to the street during the first five years of the twenty-year franchise
term, however, the City will pay for any track and crossing alterations made
necessary as a result of such modifications. The City does not presently contemplate
any changes to the street or grade during the last fifteen years of the franchise, and no
such plans have been prepared or requested by the City, but if necessary at any time
during the last fifteen years of the twenty year franchise term, UPRR agrees to alter
the track and crossing within the franchise area to maintain the common grade should
the City determine to change the street or grade in any manner. If the City decides to
change the street or grade in any substantial way that would impact UPRR's tracks,
the City shall include UPRR early on in the design phase of the Project. The City and
UPRR each acknowledge that future changes to the street could require alteration of
the track(s) beyond the limits of the street, and that any such alterations that may
become necessary beyond the limits of the street shall be at no cost to the City,
although nothing in this franchise shall prevent UPRR from charging any other party
to which UPRR may have granted or assigned an interest in the track. The City and
UPRR each further acknowledge that in the event that changes to the street require
substantial modification of the tracks either within the street or beyond the limits of
the street, UPRR will make an economic decision whether to modify its tracks at no
cost to the City, or in the alternative to abandon its franchise consistent witI2 its
customer service contracts, in which event UPRR's tracks would be removed during
the course of construction of the changes to the street.
SECTION 4. UPRR, at no cost to the City, shall maintain in good
repair (as determined by the City Public Works Director), and replace, when
requested by the City, the crossing pad across the entire right of way, including
sidewalks. UPRR shall plank between the rails and for one foot on either side
thereof, and shall use either prefabricated hardwood, asphalt with metal guardrails,
concrete or rubber panels, or other crossing pad of a type and design approved by the
City Public Works Director. Maintenance of the crossing will be at UPRR's expense,
but if resurfacing is needed due to heavy vehicular traffic over the crossing, the City
shall use its best efforts to obtain any state or federal funding that might be available
to improve the surface of the crossing. At no cost to the City, UPRR shall also install
and maintain an crossing and protective devices required by applicable public
Y g
authorities including but not limited to the City, provided, however, that the City shall
�.� -3 -
use its best efforts to obtain any available state or federal funding for such protective
devices. UPRR shall install any requested crossing pad or protective devices within `
twelve (12) months from the date it receives notification from the'City to make such
changes; however, if these changes are subject to prior authorization from the
Washington Utilities and Transportation Commission ("WUTC"), then this twelve
(12) month time period shall apply from the date of WUTC authorization or approval.
SECTION S. UPRR shall not store railroad cars within the franchise
area, nor shall UPRR stop cars within the franchise area for switching operations, nor
shall UPRR use the franchise area in any manner that unreasonably interferes with
travel within the City's right of way.
SECTION 6. The City maintains the same control over South 196th
Street within this franchise area as it has over other public streets within the City's
jurisdiction. This franchise shall not restrict the rights of the City or other franchise
holders in the City to enter upon South 196th Street within the franchise area for the
purpose of locating, relocating, constructing, maintaining, repairing, or removing any
public works, utilities, or facilities within, under or over the franchise area, but this
work shall not unnecessarily interfere with the movements of railroad traffic over the
franchise area.
SECTION 7. UPRR shall defend, indemnify and hold the City, its
officers, officials, employees, agents and volunteers harmless from any and all claims,
injuries, damages, losses or suits, including all legal costs and attorney fees, arising
out of or in connection with the performance of this franchise ordinance, but only to
the extent of UPRR's negligence or comparative fault. This indemnification includes
liability for crossing design, signalization design, and/or maintenance, and road
maintenance within the crossing area. It also includes any failure or omission on the
part of UPRR to perform any action required by this franchise. The City's inspection
or acceptance of any of UPRR's work when completed shall not be grounds to avoid
any of these covenants of indemnification. No act, inspection, approval or omission
by the City shall affect UPRR's obligation to fully defend, indemnify and hold
harmless the City, its officials, officers, employees, agents and volunteers. In
addition, UPRR's obligation to defend, indemnify and hold the City harmless shall
survive the expiration or termination of this franchise ordinance.
-4 -
..r SECTION 8. Nothing granted in this franchise shall release UPRR
from obtaining all permits or other authorizations required by the City to maintain.
operate, repair or alter the track and crossing either within or without the franchise
area or to do any of the work contemplated by this franchise ordinance.
SECTION 9. In the event that UPRR breaches this franchise
agreement, the City may revoke this franchise after giving UPRR sixty (60) calendar
days prior written notice, which shall state the grounds for revocation. Once revoked.
UPRR, its customers, agents and assigns, shall immediately lose all right and
authority to use this crossing, and the City may, at its option, restrict, block, close or
remove the track and crossing within the franchise area.
SECTION 10. If the spur crossing that is the subject of this franchise
has not been in use for one (1) year or longer, this franchise may be revoked by the
City after 30 days written notice to UPRR. Such notice of revocation shall be
provided to:
Mr. John W. Trumbull
Manager, Industry and Public Projects
Union Pacific Railroad Company
5424 S.E. McLaughlin
Portland, OR 97202
If use of the crossing by UPRR and/or its agents or assigns commences again within
that 30-day period, then the notice of revocation shall be ineffective and this franchise
shall remain in effect. Once effectively revoked, UPRR, its customers, agents and
assigns, shall immediately lose all right and authority to enter or use the franchise
area, and the City may, at its sole option, restrict. block, close or remove the track and
crossing within the franchise area.
SECTION 11. The franchise privileges granted in this ordinance shall
be effective for twenty (20) years from and after the effective date of this ordinance.
At the end of this twenty-year franchise term, all of UPRR's franchise rights shall
expire, and, if the franchise is not renewed., the City may, at its sole option, restrict,
block, close or remove the track and crossing within the franchise area.
�`"'° - 5 -
SECTION 12. UPRR shall have no right to receive anv award in
condemnation, whether direct or inverse, as a result of this franchise. `may
SECTION 13. No waiver, alteration, or modification of any of the
provisions of this franchise ordinance shall be binding unless in writing and signed by
a duly authorized representative of the City and UPRR.
SECTIONI4. If any one or more sections, subsections, or sentences
of this ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this ordinance and the same shall
remain in full force and effect.
SECTION 15. UPRR shall, within seven (7) calendar days from the
date of passage of this ordinance, file with the City Clerk its written acceptance of the
terms, provisions and conditions of this franchise. If UPRR fails to file its written
acceptance of this franchise, without additional conditions, by the end of this seven
(7) calendar day period, this ordinance will-be void and of no further force or effect.
SECTION 16. This ordinance shall not take effect until accepted by
UPRR within the time provided in Section 15. If accepted by UPRR within the time
provided in Section 15, this ordinance shall become effective five (5) days from the
time of its passage and publication as provided by law or when accepted by UPRR,
whichever is later.
JIM WHITE, MAYOR
ATTEST:
BRENDA JACOBER, CITY CLERK
- 6 -
APPROVED AS TO FORM:
ROGER A. LUBOVICH, CITY ATTORNEY
PASSED: day of , 1999.
APPROVED: day of 11999.
PUBLISHED: day of , 1999.
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved by the
Mayor of the City of Kent as hereon indicated.
(SEAL)
BRENDA JACOBER. CITY CLERK
P:\Civil\FILES\0185\031299.rev.frrn.ord.doc
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V — / —
!III
Kent City Council Meeting
Date March 16, 1999
Category Consent Calendar
1 . SUBJECT: MINICOMPUTER PURCHASE - AUTHORIZATION
2 . SUMMARY STATEMENT: Authorization for the Mayor to sign a
purchase agreement with R & D Industries for the purchase of a
HP-9000 minicomputer in the amount of $146, 289 . 18 , subject to
City Attorney approval of purchase terms .
In the Technology Plan, the need for new minicomputers was
clearly identified. This is the City' s first major mini-
computer under the plan. This HP-9000 will immediately be used
to store database systems for Permitting, Public Works, G. I . S .
and Parks software projects . It will have significant capacity
for those systems to grow. On March 2 , 1999, the Operations
Committee recommended purchasing a HP-9000 minicomputer from
R & D Industries for $146, 289 . 18 . The City is saving approxi-
mately 20% on this purchase by utilizing an existing bid
conducted by a state agency called the Communications
Technology Consortium. In addition to saving approximately 20%
or .more from list prices, costs of conducting and advertising
w bids are saved. City Code Section 3 . 70 . 030 allows the City to
use other agency' s bids in place of conducting its own bid
process .
3 . EXHIBITS: Memo from Marty Mulholland, R & D quote, and CTC
Convenience quote
4 . RECOMMENDED BY: Operations Committee 3/2/99 (unanimous)
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $146 , 289 . 18
SOURCE OF FUNDS : Technology Plan
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6E
Date: February 25, 1999
To: Council Operations Committee
From: Marty Mulholland, Director of Infornmtion Services
Re: Purchase of HP-9000 Minicomputer
Background:
In the Technology Plan we clearly identified the need for new minicomputers. This is the first
major minicomputer purchase we will make. (A substantially less expensive minicomputer
was purchased last month.)
We plan to use this minicomputer(which is an HP-9000 model)to store large database
systems that are accessed by many employees at once. This particular minicomputer will
immediately be used to store database systems for Permitting, Public Works, G.I.S., and
Parks software projects. This minicomputer will have significant capacity for those systems
to grow.
Budget and Research Process:
We are well within our Technology Plan budget for minicomputers. Due to configuration
changes and falling prices for these items, the configuration and deployment of
minicomputers is different than it was at the time the Technology Plan was approved. Our
entire Technology Plan budget for minicomputers is $505,000. We spent just under$50,000
for our first minicomputer, and we are recommending an allocation of$146,289.18 for this
purchase. In total, I believe we will be under budget for minicomputers by about $100,000.
Ramona McCall is the Senior Systems Analyst who lead the selection effort. Ms. McCall did
extensive research on possible HP-9000 configurations by interviewing representatives from
Hewlett-Packard as well as using technical tools for machine capacity evaluation. Once a
few key configurations had been identified, representatives from I.S. met with Hewlett-
Packard engineers to determine the final configuration.
Costs are as follows:
HP-9000 Quote 128,397.69
Misc. Add-ons 378.00
Tax 11,074.71
5% Contingency 6,438.78
Total 146,289.18
„ .,
Bid Identified:
The City will save approximately 20% on this purchase by utilizing a bid for this purchase.
The bid was conducted by a state agency called the Communications Technology
Consortium CCTC"). The CTC awarded the contract to R&D Industries. The City of Kent
has used this bid in the past for similar purchases and continues to be able to purchase from
this bid. In addition to saving approximately 20% or more from list prices, we also save the
costs of conducting and advertising our own bid. City code section 3.70.030 allows the City
to use other agency's bids in place of conducting our own bid process.
Attachments:
• R&D Industries Cover Letter for Quote
• Quote for HP-9000 Model K570
• Letter Renewing R&D Contract for use through June 2000
• R&D Industries Contract
Motion:
I move to authorize the purchase of an HP-9000 minicomputer from R&D Industries for
$146,289.18, subject to City Attorney approval of purchase terms.
10,
M
NU4441 NA4 N&t.&C4.E"�"i
February 24, 1999
City of Kent
220 Fourth Avenue South
Kent,WA 98032
Attention:Ramona McCall
Sr. Systems Analyst
Reference: CTC Hewlett Packard Contract 080195 TTT
R&D Industries,Inc.is pleased to provide,for your review,the attached two quotations for Hewlett
Packard 9000 K570 UNIX based server. These quotations were p1q red in accordance with the terms and
conditions of the referenced contact and the subsequent contract renewal signed by Mayor Jim White on
June 19, 1998.
Both quotations are identical except that Quotation#0212HJD includes a HP 12H AutoRaid Storage
System while Quotation#20HAJD includes a High Availability Storage Enclosure.
Sales tax of 8.6%is not included on either quote. Delivery charges are included in the prices. Delivery of
either configuration would be 21 days after receipt of order.
4�" dames J.Diehl
Executive Sales Manager
R&D Industries,Inc.
1824 130th Avenue NE, Ste 2 • Bellevue, WA 98005-2228 Tel. 425.881 .8490 Fax: 425.869.6565
www.aomputorpriaes.eew
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1
June 1,1998
Mr. WD Bill Dauenhauer
Executive Director
R & D Industries, Inc.
1824 130th Ave NE, Suite 2
Bellevue, WA 98005
subject: CTC Hewlett Packard 008O195 TTT `Contract Renewal'
This letter is to notify you that we hereby exercise our option to extend our
participation in the above subject `optional use' contract effective on or before
July 1, 1998, and in accordance with the following:
Term of Agreement:
The initial term of Agreement shall be two (2) years, commencing upon the date of its
execution by both the parties. The term of this Agreement may be extended by two (2) one
(1) year periods, PROVIDED: The extensions shall be at the exclusive option of the
Customer and shall be effected by the Customer giving written notice of extension to the
Contractor not less than thirty(30) days prior to the expiration date of the initial term of this
Agreement. No change in Terms and Conditions, increased purchase prices shall be
permitted during these extensions.
All purchase transactions executed pursuant to the authority of this Agreanent shall be
bound by all of the terms, conditions, and purchase prices, set forth herein, not withstanding
the expiration of the initial term of this Agreement or any extension thereof, for the periods
set forth following:
City of Kent
220 Fourth Avenue South
Kent,WA 980
Signature
_%2;W
lame
Title M a y o r
Date
cisextmd.doc
�rr/
.µ ..
`CTC'
CONVENIENCE" ,CONTRACT
for
Hewlett-Packard
Personal Computers, Peripherals,
HP/UNIX, & Consumables
between
R & D INDUSTRIES, INC.
and
City of Kent
AVAILABLE TO
PUBLIC EDUCATION INSTITUTIONS AND
"FOLLOW-ON USE"AGENCIES
OF THE
STATE OF WASHINGTON
AUGUST 1, 1995
Contract Number 080I95-TTT
TABLE OF CONTENTS
Advance Payment................. 2
Affirmative Action................................................................. 2
Anti-Trust Violations................... .....................................................................................................3
Assignments................................................. 3
................
Attorney's Fees and Costs....................................................................................3
Compliance with Civil Rights Laws ......................................................................4
Conflictof Interest .......................................................... .............................
Contractor Commitments, Warranties and Representations...................................4
Contractor and Subcontractor...............................................................................5
Counterparts ........................................................................................................6
Default................................. 6
......................................................
Disputes........................................................................................... 6
EntireAgreement..................................................................... 7
. ............
Failure to Perform..................................... 7
..................................
Governing Law...................... 7
.....................
Headings and Order of Precedence.......................................................................8
Independent Status of Contractor.........................................................................8
InvoiceProvisions................................................................................................8
LicensingStandards..............................................................................................9
Limitation of Authority...........................................
Limitation of Liability...........................................................................................9
Negotiated Terms...............................................................................................10
Notices.......... .......................
......................................................................................
Orders................................................................................................................10
OSHA/WISHA ................................................ 11
...............................................
Price Protection- General............................................. 11
..................................
Publicity 11...................................................................................................
Rejection............................ 11
..............................................................
Review of Contract Performance........................................................................11
SaveHarmless....................................................................................................12
Severab ility.........................................................................................................12
Taxes.......................................... ...........12
..................................................
Termof Agreement............................................................................................12
Termination for Default..............................................................................
Termination for Convenience.......................................................................... 14
Termination Procedure.......................................................................................14
UCCApplicability.......................................................................... ...........16
Waiver .............................................................................................
Signature Blocks
ExhibitA............................................................................................................17
Exhibit B........ ..........A-1
...............................................B-1
AI
BASIC PROVISIONS
THIS AGREEMENT is entered into by and between City of Kent, an agency of
the Washington State government, referred to as the "Customer," and, R & D
Industries, Inc., licensed to conduct business in the State of Washington, and
hereinafter referred to as the "Contractor."
HEREBY WITNESSETH:
WHEREAS, the Communications Technology Center (CTC), acting on behalf of
the community and technical college system of the State of Washington, issued a
Request for Proposal (RFP), dated May 22, 1995, for the purposes of obtaining
proposals for an Authorized Hewlett-Packard Dealership to provide the CTC and
other participating agencies, (i.e., City of Kent ), with Hewlett-Packard Personal
Computers, Peripherals and Consumables.
WHEREAS, the CTC RFP contained explicit language indicating that the
convenience contract awarded as the result of the RFP process would be available
to other `non education' agencies, (i.e., City of Kent), of the State of Washington
under the Washington State Information Services Board's Acquisition and
Disposal of Information Technology Resources policy allowing `follow-on use' by
other agencies with like requirements.
WHEREAS, the Contractor submitted a response to said RFP and was identified
as the Apparent Successful Vendor.
WHEREAS, City of Kent has reviewed the CTC RFP and `convenience
contract' and finds that City of Kent has the same requirements as those reflected
in the CTC's referenced documents and City of Kent has elected to exercise its
`follow-on use' option as identified under the Department of Information Services'
policy on Acquisition and Disposal of Information Technology Resources.
WHEREAS, the Customer hereby awards to Contractor a "convenience contract"
to furnish Hewlett-Packard personal computers, personal computer peripherals,
and related products as listed and described on Exhibit A, attached hereto and by
this reference made a part hereofy as though completely set forth herein, at the
prices set forth in Exhibit B, subject to and in accordance with the terms of this
Agreement.
IN CONSIDERATION WHEREOF, the mutual promises made to each other,
as hereinafter set forth, the parties further agree as follows:
1
............. ......
TERMS AND CONDITIONS
�✓ Definitions as used throughout this Agreement shall have the meanings set forth
below:
"Contracting Officer" shall mean City of Kent.
"Contract Administrator" shall mean City of Kent.
"Contractor" shall mean R&D Industries, Inc.
"Customer" shall mean the City of Kent and any employee of the agency listed
above.
"Purchase Document" shall mean whatever order document appropriate to the
purchasing agent.
"Convenience Contract" shall mean a contract that was competitively established
but the `convenience' designation allows Customers to acquire product/services
from sources other than the contract provided that applicable acquisition
requirements are satisfied.
Advance Payment:
No advance payment shall be made for goods or services furnished by Contractor
pursuant to this contract. Except as otherwise provided herein, such payments
shall be due and payable within thirty (30) days after receipt of such goods or
services or after receipt of properly prepared invoices, whichever is later.
Affirmative Action:
The Contractor agrees not to discriminate against and to take affirmative action to
ensure equality of treatment for any client, employee, or applicant for employment
or services because of age, race, color, religion, sex, ancestry, national origin,
marital status, Vietnam era or disabled veteran status; or the presence of any
mental, physical or sensory handicap with regard to but not limited to, the
foUowing: employment, upgrading, demotion, or transfer, recruitment or
recruitment advertising; layoffs or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeships and volunteers.
A vendor in violation of this clause or any applicable affirmative action program
may become subject to other penalties as elsewhere provided in Washington State
Law.
2
Anti-Trust Violations:
Contractor and Customer recognize that in actual economic practice overcharges
resulting from antitrust violations are in fact usually borne by the Customer.
Therefore, the Contractor hereby assigns to the Customer any and all claims for
such overcharges as to goods and services purchased in connection with this
contract, except as to overcharges not passed on to the Customer resulting from
antitrust violations commencing after the date of the bid, quotation, or other event
establishing the price under this contract.
Assignment:
With the prior written consent of the Customer which consent may be withheld at
Customer's sole discretion, the Contractor may assign this agreement including the
proceeds hereof: PROVIDED that such assignment shall not operate to relieve the
Contractor of any of its duties and obligations thereunder, nor shall such
assignment affect any remedies available to the Customer that may arise from any
breach of the provisions of this agreement, its supplements, or warranties made
herein including but not limited to, rights of setoff.
With the prior written consent of the Contractor which consent shall not be
withheld unreasonably, the Customer may assign this agreement (and move the
equipment/software) to any state agency within the political boundaries of the
State of Washington: PROVIDED that such assignment shall not operate to
relieve the Customer of any of its duties and obligations hereunder, including the
obligation to pay monthly charges when an assignment is made; and provided
further that all risks and expenses incurred in connection with such removal and
relocation of said equipment including transportation, rigging, drayage, insurance,
and installation charges shall be borne by the Customer.
Attorneys' Fees and Costs:
If any litigation is brought to enforce, or arising out of this Contract or any term,
clause, or provision hereof, the prevailing party shai; be awarded its reasonable
attorneys' fees together with expenses and costs incurred with such litigation
including necessary fees, costs, and expenses for services rendered at both trial and
appellate levels as well as subsequent to judgment in obtaining execution thereof.
3
Compliance with Civil Rights Laws:
The Contractor hereby assures that it will comply with Title VU of the Civil Rights
Act to the end that no person shall, on the grounds of age, race, creed, color, sex
or national origin be excluded from participation in, be denied the benefits of, or be
otherwise subjected to discrimination under this contract or under any project,
program or activity supported by this contract.
Conflict of Interest:
The Customer may terminate this Contract, by written notice to the Contractor, if
it is found after due notice and examination that there is a violation by Contractor
of:
a. Ethics in Public Service, Chapter 42.52 RCW;
b. code of Ethics for Public Officers and Employees, Chapter 42.22 RCW;
and Code of Ethics for Municipal Officers, Chapter 42.23 RCW; or
C. any other similar statute involving the Contractor in the procurement of or
performance under this Contract.
In the event this Contract is terminated as provided above, the Customer shall be
entitled to pursue the same remedies against the Contractor as it could pursue in
the event of a breach of the Contract by the Contractor. The rights and remedies
of the Customer provided by this clause shall not be exclusive and are in addition
to any other rights and remedies provided by law.
Contractor Commitments, Warranties and Representations:
Any written commitment by the Contractor within the scope of this contract shall
be binding upon the Contractor. Failure of the Contractor to fulfill such a
commitment may constitute breach and shall render the Contractor liable for
liquidated or other damages due the Customer under the terms of this contract.
For purposes of this contract, a commitment by the Contractor, which must be in
writing, includes: (1) prices and options committed to remain in force over a
specified period(s) of time; (2) any warranty or representation made by the
Contractor in a proposal as to hardware or software performance or any other
physical, design or functional characteristics of a machine, software package,
system or other product; (3) any warranty or representation made by the
Contractor concerning the characteristics or items in (2) above, contained in any
literature, descriptions, drawings or specifications accompanying or referred to in a
S%.01 proposal; (4) any modification of or affirmation or representation as to the above
4
which is made by Contractor in writing in or during the course of negotiation
whether or not incorporated into a formal amendment to the proposal in question;
and (5) any representation by the Contractor in a proposal, supporting documents
or negotiations subsequent thereto as to training to be provided, services to be
performed, prices and options committed to remain in force over a fixed period of
time or any other similar matter regardless of the fact that the duration of such
commitment may exceed the duration of this Contract.
Contractor and Subcontractor:
A. Contractor means any firm, provider, organization, individual, or other
entity performing services under this Agreement. It shall include any
subcontractor retained by Contractor as permitted under the terms of this
Agreement.
B. Subcontractor means one not in the employment of the Contractor who is
performing all or part of the services under this Agreement under a
separate Agreement with the Contractor.
C. The Contractor may, with prior written permission from the Customer,
enter into subcontracts with third parties for its performance of any part of
the Contractor's duties and obligations. In no event shall the existence of a
subcontract operate to release or reduce the liability of the Contractor to
the Customer for any breach in the performance of the Contractor's duties.
1. The existence of a subcontract shall in no event operate to
release or reduce the liability of the Contractor to the
Customer for any breach in the performance of the
Contractors duties;
2. The Contractor agrees that all subcontractors shall be
agents of the Contractor, and the Contractor further agrees
to hold the Customer harmless hereunder for any loss or
damage of any kind occasioned by the acts or omissions of
the Contractors subcontractors, their agents, or employees.
5
.......... ... .
3. The Customer shall not be liable for any loss or damage
resulting from personal injury, physical loss, harassment of
employees, or violations of the Patent and Copyright
Indemnification provisions of this Agreement occasioned by
the acts or omissions of the Contractor's subcontractors,
their agents or employees.
4. The Patent and Copyright Indemnification provisions of this
Agreement shall apply to all subcontractors.
Counterparts:
This Agreement is to be executed in duplicate originals and each duplicate shall be
deemed an original copy of the Agreement signed by each party, for all purposes.
Default:
The Contractor covenants and agrees that in the event of any default on the part of
the Contractor shall pay to the customer either(1) the remedy specifically provided
in this Agreement for such event of default, if any, or (2) if no remedy is specified
in this Agreement for such event of default, all costs and expenses incurred by the
customer in connection therewith, and attorney's fees finally awarded against the
Contractor.
Disputes:
Except as otherwise provided in this Contract, when a bona fide dispute
concerning a question of fact arises between the Customer and the Contractor, and
it cannot be resolved, either party may initiate the dispute resolution procedure
provided herein.
Time is of the essence in resolving disputes. The initiating party shall reduce its
description of the dispute to writing and deliver it to the responding party. The
responding party must respond in writing within two (2) state working days.
a. Then, both parties shall have three (3) state working days to negotiate in
good faith to resolve the dispute. If the dispute cannot be resolved after
three (3) days, a panel of arbitrators may be appointed.
b. Each party will designate an arbitrator, and those two arbitrators will
appoint a third arbitrator to the panel.
6
...........................
1) The panel will review the written descriptions of the dispute, gather
additional information as needed, and render a decision on the ,...
dispute in the shortest practical time.
2) Both parties agree to be bound by the determination of the panel of
arbitrators.
Once formed, the panel of arbitrators shall remain in effect through the
performance period of this Contract.
Both parties agree to exercise good faith in dispute resolution and to avoid
arbitration whenever possible.
The Customer and the Contractor agree that, the existence of a dispute
notwithstanding, they will continue without delay to carry out all their respective
responsibilities under this Contract that are not affected by the dispute.
Entire Agreement:
This contract sets forth the entire Agreement between the parties with respect to
the subject matter hereof and except as provided in the Provision entitled
"Contractor Commitments, Warranties, and Representations," understandings,
agreements, representations, or warranties not contained in this Agreement or a
written amendment hereto shall not be binding on either party. Except as provided
herein, no alteration of any of the terms, conditions, delivery, price, quality, or
specifications of this contract will be effective without the written consent of both
parties.
Failure to Perform:
In the event Contractor has failed to perform any substantial obligation to be
performed by the Contractor under this agreement and 30 days after written notice
of said failure to perform is provided to Contractor said failure has not been cured,
then the Customer may withhold all monies due and payable to Contractor,
without penalty, until such failure to perform is cured or otherwise adjudicated.
Governing Law:
This contract shall be governed in all respects by the law and statutes of the State
of Washington. The venue of any action hereunder shall be in the Superior Court
for King County, Washington.
7
Headings and Order of Precedence:
A. The headings used herein are inserted for convenience only and
shall not control or effect the meaning or construction of any of the
provisions.
B. If any provisions of this Agreement shall be deemed in conflict with
any statute or rule of law, such provisions shall be deemed modified
to conform to said statute or rule of law. In the event of any
inconsistency in this Agreement, the inconsistency shall be resolved
in the order of precedence stated below:
C. Order of Precedence
1. Applicable Federal and State Statutes and Regulations
2. The Terms and Conditions of Contract
3. Exhibit A-
4. Exhibit B -
Independent Status of Contractor:
The parties hereto, in the performance of this contract, will be acting in their
individual capacities and not as agents, employees, partners, joint ventures or
associates of one another. The employees or agents of one party shall not be
deemed or construed to be the employees or agents of the other party for any
purpose whatsoever.
Invoice Provisions:
A. The following minimum information must appear on all Contractor
invoices:
1. Name and address of Customer
2. Customer's order number
3. Date Purchase Document was received by Contractor.
4. Order description
5. Invoice price for each item
6. Applicable taxes listed separately
7. Total invoice price
8. Contractor's remittance address
B. Incorrect invoices will be returned by the Customer for correction
`�•�' and reissue.
8
C. The Agreement and Purchase Document (or other applicable
purchase document) numbers must appear on all invoices and �..
correspondence relating to this agreement.
D. All Purchase transactions pursuant to this Agreement shall be
conducted directly between Customer and Contractor.
Licensing Standards:
The Contractor shall comply with all applicable local, state, and federal licensing
requirements and standards necessary in the performance of this Contract. (See
Chapter 19.02 RCW for Washington State licensing requirements and definitions.)
Limitation of Authority:
Only the Contracting Officer or delegate by writing (delegation to be made prior to
action) shall have the express, implied, or apparent authority to alter, amend,
modify, or waive any clause or condition of this Contract. Furthermore, any
alteration, amendment, modification, or waiver of any clause or condition of this
Contract is not effective or binding until made in writing and signed by the
Customer unless otherwise provided herein.
Limitation of Liability:
The parties agree that neither the Contractor nor the Customer shall be liable to
each other, regardless of the form of action, for consequential damages. The
parties further agree that neither shall be liable to the other for any lost profits or
any demand or claim, regardless of the form of action, against either party by any
other person except a claim or demand based on patent or copyright infringement,
in which case liability shall be as set forth elsewhere in this contract. This
provision does not modify any provisions regarding liquidated damages, retainages
or any other such conditions as are elsewhere agreed to herein between the parties.
Neither the Contractor nor the Customer shall be liable for damages arising from
causes beyond the reasonable control and without the fault or negligence of either
the Contractor, the Customer or their respective subcontractors.
Such causes may include, but are not restricted to, acts of God or of the public
enemy, acts of any governmental body acting in either its sovereign or contractual
capacity, war, explosions, fires, floods, epidemics, quarantine restrictions, strikes,
freight embargoes, and unusually severe weather; but in every case the delays must
be beyond the reasonable control and without fault or negligence of the
Contractor, the Customer, or their respective subcontractors.
If delays are caused by the default of a subcontractor without its fault or
negligence, neither the Contractor nor the Customer shall be liable for damages for
9
delays, unless the supplies or services to be furnished by their subcontractors were
obtainable on comparable terms from other sources in sufficient time to permit the
Contractor or the Customer to meet its required performance schedule.
Neither party shall be liable for personal injury or damage to tangible property
except personal injury or damage to tangible property proximately caused by each
party's respective fault or negligence.
Negotiated Terms:
This agreement is the result of negotiation of the parties and has been agreed to by
both parties.
Notices:
Any notices or communications under this Agreement shall be in writing and may
be delivered personally or mailed by registered or certified United States mail.
Notices shall be deemed given when received unless given by United States
registered or certified mail in which case notice shall be deemed given when
mailed. Notice shall be given to the other party at the address stated below:
The Customer: Ms. Joye Honeycutt
City of Kent
220 Fourth Avenue South
Kent,WA 98032
The Contractor: W.D. Dauenhauer
R&D Industries, Inc.
1824 130th NE Suite 2
Bellevue, WA 98005
Orders:
Customers shall use whatever order/purchase document that is appropriate to the
purchasing agent. Any terms and conditions stated therein shall not be
incorporated into the terms and conditions of this Agreement or any related
Exhibits attached hereto.
OSHA/WISHA:
10
Contractor represents and warrants that its products are designed and
manufactured to meet Federal and Washington State safety and health regulations �..:
that are in effect at the time of their shipment to the Customer. Contractor further
agrees to indemnify and hold harmless Customer from all damages assessed against
Customer as a result of the failure of the items furnished under this contract to so
comply.
Price Protection - General:
The Contractor agrees all the prices, terms, warranties, and benefits granted by the
Contractor are comparable to or better than the equivalent terms being offered by
the Contractor to any present Customer meeting the same qualifications or
requirements as the Customer. Except as otherwise herein provided, if the
Contractor shall, during the term of this Contract, enter into arrangements with
any other said Customer providing greater benefits or more favorable terms, this
Contract shall be obligated to provide the same to the Customer.
Publicity:
The Contractor agrees to submit to the Customer, all advertising, sales promotion,
and other publicity matters relating to any Product furnished by the Contractor
wherein- the Customer's name is mentioned or language used from which the
connection of the Customer's name therewith may, in Customers judgment, be
inferred or implied; and the Contractor further agrees not to publish or use such
advertising, sales promotion, or publicity matter without the prior written consent
of the Customer.
Rejection:
All services purchased hereunder are subject to approval by Customer. Any
rejection of services because of nonconformity to the terms and specifications of
this Agreement, whether held by Customer, or returned, will be at Contractor's risk
and expense. All rejections are subject to the prior approval of the City of Kent
Contracts Administrator.
Review of Contract Performance:
The City of Kent Administrator or his designated representative shall have the
right by appointment to examine books, records, documents and other data of the
Contractor as may be necessary to verify the Contractor's performance of the
Agreement.
11
....................
Save Harmless:
Contractor shall protect, indemnify and save the Customer harmless from and
against any damage, cost or liability for any or all injuries to persons or tangible
property arising from acts or omissions of Contractor, its officers, employees,
agents, or subcontractors howsoever caused.
Severability:
If any term or condition of this contract or the application thereof to any person(s)
or circumstances is held invalid, such invalidity shall not affect other terms,
conditions or applications which can be given effect without the invalid term,
condition or application; to this end the Terms and Conditions of this contract are
declared severable.
Taxes:
The Customer will pay sales and use taxes imposed on goods or services acquired
hereunder. The Contractor must pay all other taxes including, but not limited to,
Washington Business and Occupation Tax, taxes based on the Contractor's
income, or personal property taxes levied or assessed on the Contractor's personal
property to which the Customer does not hold title.
Term of Agreement:
The initial term of Agreement shall be two (2) years, commencing upon the date of
its execution by both the parties. The term of this Agreement may be extended by
two (2) one (1) year periods, PROVIDED: The extensions shall be at the
exclusive option of the Customer and shall be effected by the Customer giving
written notice of extension to the Contractor not less than thirty (30) days prior to
the expiration date of the initial term of this Agreement. No change in Terms and
Conditions, increased purchase prices shall be permitted during these extensions.
All purchase transactions executed pursuant to the authority of this Agreement
shall be bound by all of the terms, conditions, and purchase prices, set forth herein,
not withstanding the expiration of the initial term of this Agreement or any
extension thereof; for the periods set forth following:
12
`Purchased Eguinment - for as long as the Equipment is maintained by the
Contractor or the Contractor's authorized subcontractor, PROVIDED THAT,with respect to purchased Equipment the following clauses shall remain operative
for so long as the Equipment remains in use by an agency or political subdivision
of the State.'
Anti-trust Violations
Counterparts
Entire Agreement
Governing Law
Independent State of Contractor
Limitation of Liability
Notices
Patent and Copyright Indemnification
Severability
Waiver
Termination:
Termination for Default
The Customer may, by written notice, terminate this Contract, in whole or in part,
for failure of the Contractor to perform any of the obligations or provisions hereof.
a. In such event, the Customer shall thereupon have the right to purchase on
the open market the Equipment, software and services hereunder required
in lieu thereof, and the Contractor shall be liable for damages as authorized
by law. The Customer shall thereupon have the right to deduct from any
monies due or that thereafter become due to the Contractor or to require
the Contractor to pay the Customer for all additional costs for said
Equipment and services including, but not limited to, the following:
1) Any cost difference between the original contract price of Equipment,
software, and services and the replacement cost of Equipment, software,
and services, and
2) All administrative costs directly related to the replacement contract
such as, costs of competitive bidding, mailing, advertising, applicable
excess financing charges or penalties, staff time and the like;
b. PROVIDED, that if it is determined for any reason said failure to perform
is without the Contractor's control, fault, or negligence, the termination
shall be deemed to be a Termination for Convenience; and
13
C. FURTHER PROVIDED, that this provision shall "not apply to any
Contractor failures to perform that result from the negligent acts or
omissions of the Customer.
d. The rights and remedies of the Customer provided above shall not be
exclusive and are in addition to any other rights and remedies provided by
law or under this Contract.
Termination for Convenience:
a. Except as otherwise provided in this Contract, the Customer may,
1) By fourteen (14) days written notice, beginning on the second day after
the mailing,
2) Terminate this Contract, in whole or in part, when it is in the best
interest of the Customer.
Invocations of the Non-Allocation of Funds Clause are deemed
Terminations for Convenience.
b. If this Contract is so terminated, the Customer is only liable for payment:
1) Required by the terms of this Contract, for
2) Equipment or software delivered and accepted or services rendered
prior to the effective date of termination.
Termination Procedure:
Unless otherwise provided by installment purchase or financing Terms and
Conditions herein, upon termination of this Contract:
a. The Customer, in addition to any other rights provided in this Contract,
shall require the Contractor to deliver to the Customer all Equipment,
software, or services accepted prior to the effective date of termination by
the Customer for performance of such part of this Contract as has been
terminated;
b. Unless otherwise provided herein, the Customer shall pay to the Contractor
the agreed-upon price, if separately stated, for the Equipment, software, or
services accepted by the Customer and the amount agreed upon by the
Contractor and the Customer for:
*%WV 1) Completed services for which no separate price is stated,
14
2)• Partially completed services,
3) Other Equipment, software, or services which are accepted by the
Customer and
4) The protection and preservation of property, unless the termination is
for default in which case the Customer shall determine the extent of
liability;
C. Under conditions of termination or cancellation by the Customer for
default,
1) Subject to a finding of fact by the Dispute Arbitration Panel, convened
as set forth in the disputes clause herein, that:
a) The Contractor did not, in good faith, effect a cure or remedy
for a failure to perform, non-performance, poor performance, or
constructive non-conformance hereunder, or
b) The Customer has other cause of action against the Contractor
for a breach hereof wherein the Customer does not waive said
breach, and
c) Further resolution requires a decision on a question of law -,
beyond the authority of said panel;
2) The Customer may withhold thereafter from any amounts due the
Contractor for such Equipment, software, or services such sum as the
Customer determines to be necessary to protect the Customer against loss
or liability and to make a reasonable effort to mitigate damages sustained;
d. The rights and remedies of the Customer provided in this clause shall not
be exclusive and are in addition to any other rights and remedies provided
by law or under this Contract; and
e. After receipt of a notice of termination, and except as otherwise directed
by the Customer, the Contractor shall:
1) Stop work under this Contract on the date, and to the extent specified,
in the notice;
2) Place no further orders or subcontracts for materials, services, or
facilities except as may be necessary for completion of such portion of this
Contract as is not terminated;
15
3) Assign to the Customer, in the manner, at the times, and to the extent
directed by the Customer, all the rights, titles, and interest of the
Contractor under the orders and subcontracts so terminated, except for
those orders and subcontracts for which the Customer has paid the
Contractor and the Contractor has not paid the subcontractor, in which
case the Customer has the right, at its discretion, to settle or pay any or all
claims arising out of the termination of such orders and subcontracts;
4) Settle all outstanding liabilities and all claims arising out of such
termination of orders and subcontracts with the approval or ratification of
the Customer to the extent required which approval or ratification shall be
final for the purpose of this clause;
5) Transfer title to the Customer and deliver in the manner, at the time,
and to the extent, if any, as directed by the Customer any property
accepted by the Customer which, if the Contract had been completed
would have been required to be furnished to the Customer;
6) Complete performance of such part of this Contract as shall not have
been terminated by the Customer;
7) Take such action as may be necessary, or as the Customer may direct,
for the protection and preservation of the property related to this Contract
which is in the possession of the Contractor and in which the Customer has
or may acquire an interest; and
8) Provide written certification to the Customer that the Contractor has
surrendered to the Customer all said property.
UCC Applicability:
Except to the extent the provisions of this Agreement are clearly inconsistent, this
Agreement shall be governed by any applicable provisions of the Uniform
Commercial Code, hereinafter referred to as the UCC, as set forth in Title 62A
RCW.
A. To the extent this Agreement entails delivery or performance of
services, such services shall be deemed "goods" within the meaning
of the UCC, except when to so deem such services as "goods"
would result in an absurdity.
B. Notwithstanding the Headings and Order or Precedence clause of
this Agreement and the UCC, the terms and conditions of this
Agreement take precedence and shall prevail unless otherwise
provided by law.
16
Waiver:
Waiver of any breach of any term or condition of this contract shall not be deemed
a waiver of any prior or subsequent breach. No term or condition of this contract
shall be held to be waived, modified or deleted except by a written instrument
signed by the parties hereto.
Signature Blocks:
THE PARTIES hereto, having read this Agreement in its entirety, including all
attachments hereto, do agree thereto in each and every particular. In witness
thereof, the parties have set their hands hereunto.
STATE OF WASHINGTON CONTRACTOR
City of Kent R& D Industries, Inc.
Signature Si
Name f v Name WD Dauenhauer
Title Title President ..:
Date 7- 9 7 Date `bb bj 72
City Kent City Bellevue
County King County King
State Washington State Washington
17
Exhibit A
A-1
Exhibit A
In consideration for the Customer's identification of Contractor as the Authorized
Hewlett-Packard Dealership, Contractor hereby agrees to perform the following services
at no cost to the Customer:
• Provide Toll Free Telephone Access for Customers from anywhere in the State of
Washington.
• Provide facsimile capabilities at the Contractor's offices in order to send and receive
facsimile communications to and from the Customers.
• Effective September 1, 1995, Contractor will provide Customers with Toll Free
Facsimile Support to Contractor's Bellevue and Spokane offices from any where in the
State of Washington.
• Provide Internet Addresses for Contractor's departments (i.e., Contract
Administration, Customer Service, Technical Service, etc.,) and specific Contractor's
staff individuals such that Customers can communicate with the desired parties via
Internet email.
• Provide Contractor offices in the Puget Sound region (Bellevue) and Eastern
Washington (Spokane). In addition, the Contractor's Portland Oregon office may
serve Southeastern Washington. Full services (i.e., Contract Support Services,
Customer Service, Technical Support Services, Warrant Repair Services, Network
Consulting, etc.,)will be provided from all three Contractor offices referenced.
• Effective September 1, 1995, Contractor will provide Direct Dial telephone access to
Contractor's representatives at the Contractor's referenced offices.
• Contractor will provide voice mail box's for specific Contractor staff at the referenced
Contractor offices. Voice mail solution will be available twenty-four hours a day,
seven days a week.
• Contractor will maintain its status as a Hewlett-Packard Certified Workstation
Reseller and continue to staff at least one Hewlett-Packard Certified Workstation
Support Technician.
• Contractor will maintain its status as a Novell Certified GOLD dealer and continue to
provide at least three Novell Certified NetWare Engineers on staff.
• Contractor will maintain its status as a NEcrosoft Solutions Provider.
A-2
• Contractor will provide Hewlett-Packard Authorized Depot Repair Centers at the
Contractor's Spokane and Bellevue offices.
• Contractor will provide product pricing that includes shipping cost (freight free) to
Customer's location when standard methods of shipping are surface UPS, truck, or
other mode. Non standard methods of shipping at the request of the Customer will
result in charging the Customer for the shipping cost.
• Unless otherwise requested by the Customer, Contractor will setup and test all
Hewlett-Packard computers purchased from Contractor. The cost of this service will
be included in the purchase price of the computer.
• The setup and testing will include:
1. Removal from the shipping carton
• Plugging in the monitor, mouse, and keyboard
• Power up the system
2. Installing the Microsoft DOS and Windows or Windows for Workgroups
• The DOS and Windows software will be the versions being shipped with
the system by the manufacturer
3. Test all installed components and ensure software operation
• System and Boot-up software loading will be tested through no less than
four complete cycles.
• If requested by the Customer, additional components purchased with the system, but,
not included in the system as delivered by the manufacturer, will be installed in the
computer and submitted to the testing procedure described above. Installation charges
for installing additional components will apply.
• DOA (i.e., Dead On Arrival) components or components that fail during the set-
up/testing will be replaced or repaired by Contractor or the manufacturer prior to
shipping to customer.
• Contractor will provide an inventory pool of at least $100,000 in value of Hewlett-
Packard evaluation demonstration systems dedicated to this convenience contract. For
agencies, (i.e., City of Kent) using this agreement for `follow-on use , the value of the
evaluation demonstration systems pool will be established based on a one percent
formula(e.g., $100,000/ $10,000,000).
A-3
• Contractor will maintain a reasonable inventory of Hewlett-Packard products (several
million dollars) in support of anticipated acquisitions by Customer. This reasonable
inventory will be shared by agencies, (i.e., City of Kent) using this agreement for
`follow-on use' agreements.
• Contractor will respond, within two hours of receipt, to Customer inquiries submitted
via telephone, fax, or the Internet (see Contractors RFP proposal for further
clarification).
• Contractor will provide Customer with four quarterly newsletters and two annual
Hewlett-Packard Product/Service catalogs (or equivalent) in support of the
convenience contract.
• Contractor will provide the CTC member institutions and the four year public
institutions with a minimum of three packets each of the Hewlett-Packard
Product/Service catalogs (or equivalents. K12 institutions will be provided with
copies upon request. Agencies, (i.e., City of Kent) using this agreement for `follow-
on use ` will be entitled to a minimum of three packets each, additional packets can be
provided upon request.
• Contractor anticipates that similar information will be available to Customer via the
Contractor's Internet Web-site.
• Contractor will maintain its on-line access to Hewlett-Packard's on-line product
pricing(HPNN)to help ensure current pricing to Customers.
• Contractor will provide Net Customer Hewlett-Packard product pricing to the
Customer via a Bulletin Board System, printed price guides, or Excel files. These
sources will be refreshed once each month.
• Contractor will provide Net Customer third party product pricing via the Bulletin
Board System and diskette (on request).
• Contractor and Customer agree that the preferred method of providing Hewlett-
Packard and third party Net on-line product pricing and product information would be
via a Contractor's Internet Web-site. Contractor agrees to employ best efforts to
develop and implement an Internet Web-site within a timely manner(i.e., November 1,
1995). Upon release of this service the Customer may opt to release the Contractor
from its obligation to support the other referenced methods of providing current
product pricing information.
A-4
• On a monthly basis the Contractor will provide the Customer's Contract Administrator
with a summary of dollar sales volume by month by agency under the convenience
contract. The spreadsheet will reflect subtotals for the community and technical
colleges, the four year public college and universities, and the public K12 institutions.
Agencies, (i.e., City of Dent) using this agreement for `follow-on use' will define the
agency summary levels needed within reasonable limits.
A-5
Exhibit B
B-1
Exhibit B
Contractor agrees to provide Customer with all Hewlett-Packard products authorized for
distribution through Contractor (i.e. Vectra personal computers, network servers, laser
printers, deskjet printers, facsimile, scanners, routers, bridges, etc.,) based on the
following pricing algorithm:
• Customer purchase price equals Contractor's direct purchase price from Hewlett-
Packard plus a mark-up of simple 5 percent (i.e., cost times 1.05).
• Customer's costs are subject to additional discounts where competitive issues and
volume purchases are applicable.
Contractor confirms that all Hewlett-Packard product pricing here-in factors in all
standard shipping costs.
Contractor agrees to provide Customer with non Hewlett-Packard (i.e., third party)
products from specific vendors authorized for distribution through Contractor based on
the following pricing algorithm:
• Customer's purchase price equals Contractor's direct purchase price from Distributor
and/or Manufacturer plus a mark-up of ten percent (i.e., cost times 1.10).
• Customer's costs are subject to additional discounts where competitive issues and
volume purchases are applicable.
• Contractor and Customer agree that the Request For Proposal (RFP) used to award
the convenience contract included the provision for the Contractor to provide a large
variety of products beyond the Hewlett-Packard product line. The Contractor's
proposal detailed a list of third party vendors that the Contractor anticipated making
available to the Customer. The standard ten percent mark up will apply to all such
third party products.
Third party vendors pricing were not scored in the evaluation of the vendor proposals
because prices change frequently. Since prices were not scored, buyers should review all
current market price quotations listed for a product to obtain the best price available
before making a purchase from the third party vendor. Under the third party portion of
the `follow-on use' contract, customers are allowed to purchase up to ($9,999 third party
products)without competition.
Contractor agrees to offer the Customer optional Technical Support Services, as described
in the Technical Support Services CTC Fee Schedule, at rates reflected in such referenced
schedule.
B-2
Kent City Council Meeting
Date March 16, 1999
Category Consent Calendar
1 . SUBJECT: PREMERA BLUE CROSS CONTRACT - AUTHORIZATION
2 . SUMVARY STATEMENT: As recommended by the Operations
Committee on March 2, 1999, authorization for the Mayor to sign
the Premera Blue Cross Contract Renewal for 1999 . This is an
administrative agreement with Premera Blue Cross whose sole
function is to provide claims administration services for the
City of Kent . The renewal lists the 1999 State Mandated
Benefit program changes that the City shall be incorporating
into our self-insured program.
3 . EXHIBITS: Blue Cross Contract for 1999
4 . RECOMMENDED BY: Operations Committee
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $ N/A
SOURCE OF FUNDS : Health & welfare Fund
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6F
RENEWAL LETTER
GROUP NAME: CITY OF KENT
GROUP ADDRESS: 220 Fourth Avenue South
Kent, WA 98031
GROUP NUMBER(S): 13595, 13596, 13597, 17620, 17884
RENEWAL DATE: January 1, 1999
Please complete the sections of this document which require your input and/or
initials and return it with your signed contract.
CHANGES
r
If the state or federal government mandates any additional change in benefits or if Premera
Blue Cross revises benefits or provisions after this renewal is issued, a supplemental notice
will be provided.
The following changes will be made at renewal:
0 As a result of a merger between Blue Cross of Washington and Alaska and Medical
Service Corporation, effective June 30, 1998, Blue Cross of Washington and Alaska has
been renamed "Premera Blue Cross." Every reference to Blue Cross of Washington and
Alaska throughout the contract and benefit booklet will be changed to reflect the new
name.
® Due to a U.S. Supreme Court ruling on June 9, 1998, a health plan must now offer
COBRA coverage to otherwise eligible COBRA beneficiaries who either have group health
coverage or who are entitled to Medicare prior to their COBRA election date. If,
however, a beneficiary obtains group coverage or becomes entitled to Medicare after
COBRA is elected, a health plan may continue to terminate such COBRA coverage.
0 Due to the recent passage of the Women's Health and Cancer Rights Act of 1998, the
language relating to mastectomies and breast reconstruction will be revised. The
following language will be added under "Major Medical Benefits."
"Mastectomy And Reconstructive Breast Surgery
Benefits are provided for mastectomy necessary due to illness or accidental injury.
For any enrollee electing breast reconstruction in connection with a mastectomy, this
benefit covers:
♦ Reconstruction of the breast on which mastectomy has been performed;
♦ Surgery and reconstructive of the other breast to produce a symmetrical
appearance;
♦ Prostheses; and
♦ Physical complications of all stages of mastectomy, including lymphedemas;
in a manner determined in consultation with the attending physician and the patient."
The exclusion relating to reconstructive breast surgery will also be modified.
1
0 A new compliance statement with regard to data transmission issues with the Year 2000
is being incorporated in to the Administrative Service Agreement. The following
provision is being added:
"Year 2000 Compliance
Commencing on July 1, 1999 and continuing thereafter, the Group and Premera Blue
Cross, referred to hereafter as the "parties," shall exchange all electronic data in
compliance with the data transfer specifications described below. If data transmitted on
or after July 1, 1999, by either party (each referred to as "Data Transmitter" or "Data
Receiver" as appropriate) are not in compliance with such data transfer specifications,
the Data Transmitter shall, at its sole cost and expense, promptly generate and resubmit
data in compliance with the data transfer specifications, in a manner that minimizes
interruption of the Data Receiver's business processes, with time being of the essence.
As further described in the paragraph below, at our request, the parties will conduct a
trial between July 1, 1999 and October 31, 1999, to exchange data in a Year 2000 test
environment to ensure that data exchanged between the parties satisfy the data transfer
specifications described below.
For all transmissions of electronic data on and after July 1, 1999, the parties shall use
the electronic data translators or formats ("Permitted Data Formats") described in the
table below. The Permitted Data Formats require Patient Date of Birth to be transmitted
in a 4-digit form (i.e., mm/dd/yyyy). As a part of our Year 2000 Project, a testing period
has been set aside between July 1, 1999 and October 31, 1999. This testing period
allows the parties to have the opportunity to exchange data in a test environment to
ensure that both parties receive and transmit Year 2000 compliant data. If we desire to
conduct such a test with the Group, our Year 2000 Project staff will contact and
schedule the Group for the test, and such scheduling efforts will start on or about
June 1, 1999.
PERMITTED DATA FORMATS DATA S REQUIRING
4.01W YEARS
NSF Patient Date of Birth
Institutional-vs 4.0 and up
Professional-vs 1.04 and up
Ansi x12 - DCOS 837 vs 3041 Patient Date of Birth
COB - vs 3.0 and up Patient Date of Birth
ITS release 8 Patient Date of Birth
ECC - Revised 6/01/1998 Patient Date of Birth
Envoy - vs 2.1 and up Patient Date of Birth
2
........................
The following changes may be made at renewal. Please advise us of your determination by
marking each appropriate box below.
® The exclusion for work-related conditions found under the "General Limitations And
Exclusions" section of the benefit booklet has been revised to clarify administration. The
exclusion now reads as follows:
"Any illness, condition, or injury arising out of or in the.course of employment, for which
the enrollee is entitled to receive benefits, whether or not a proper and timely claim for
such benefits has been made under:
• Occupational coverage required of, or voluntarily obtained by, the employer;
• State or federal workers' compensation acts; or
• Any legislative act providing compensation for work-related illness or injury."
Yes
❑ No
** Initials
® Pharmacy Drug Benefit
Premera Blue Cross is implementing a pharmacy benefits management program to
improve the quality of your program's Pharmacy Drug Benefit and help foster appropriate
pharmaceutical care received by our enrollees. Under this program, certain drugs
prescribed for longer than a 90-day period will require a statement of medical necessity
from the enrollee's prescribing physician. Additionally, certain drugs may require
preauthorization by Premera Blue Cross before they can be dispensed.
`...� Therefore, the Pharmacy Drug Benefit currently found in your benefit booklet is amended
to include the following provision:
"In accordance with established pharmacy practice standards, certain drugs may require
preauthorization. We may also limit the supply dispensed based on medical necessity.
Contact your prescribing physician if you have questions about medications that are
prescribed for you."
❑ Yes
'P No
** nitials
® The following definitions may be revised:
• Experimental / Investigative Services
The definition of "Experimental / Investigative Services" located under the
"Definitions" section of your booklet has been replaced. The new definition further
clarifies the standards.we use to determine whether a service or supply is
experimental or investigative, and gives examples of some of the sources we use in
making a determination.
3
• Allowable Charge
The definition of "Allowable Charge" located under the "Definitions" section of your
booklet has been revised. The new definition further clarifies our administrative
guidelines.
Yes
❑ No
`LN m A-LS
4
Please indicate below any other changes to the existing benefit plan at renewal, including a
change in the Group's legal name or address,any affiliate or subsidiary additions or deletions,
and revised eligibility requirements or IRS Section 125 Cafeteria Plan revisions.Attach
additional pages as necessary.
Seeattached below----------------------------------------------------------------------------------------
� ( A
This document has been updated for your 1999 renewal and is enclosed for your review and
signature.
If you have any questions about this renewal,please contact your Marketing Representative for
assistance.
Attachment:
Benefits are provided for the services listed below,up to a combined maximum of$500 per
calendar year. Services must be:
• Furnished by a preferred provider in Washington State; or
• Furnished by a provider outside Washington State who is licensed to perform these services
in the state in which they are furnished;and
• Not otherwise excluded from coverage from this program.
Once the benefit maximum has been reached,the services described below are not covered under
other benefits of this program
• Acupuncture services when medically necessary to relieve pain, induce surgical anesthesia,
and for other therapeutic purposes.
• When prescribed by your physician, nutritional counseling and education services directly
related to medically necessary treatment of a covered illness, injury or condition.
• When prescribed by your physician, external manipulation or pressure of soft tissue for
therapeutic purposes(massage therapy), when medically necessary treatment of a covered
illness, injury or condition.
5
PREMERA BLUE CROSS '
ADMINISTRATIVE SERVICE AGREEMENT
This Agreement is effective this first day of January 1999, by and
between the CITY OF KENT (hereinafter referred to as the "Plan
Sponsor") , and PREMERA BLUE CROSS (hereinafter referred to as the
"Claims Administrator") .
WHEREAS, the Plan Sponsor has established an employee benefit plan
(hereinafter referred to as the "Plan") which provides for payment of
certain welfare benefits to and for certain eligible individuals as
defined by the Plan Document, such individuals being hereinafter
referred to as "Participants, Dependents and Beneficiaries"; and,
WHEREAS, the Plan Sponsor has chosen to self-insure the benefit
program(s) provided under the Plan; and
WHEREAS, the Plan Sponsor desires to engage the services of the Contract
Administrator to provide administrative services for the Plan;
NOW THEREFORE, in consideration of the mutual covenants and conditions
as contained herein the parties hereto agree as follows:
SECTION I DUTIES AND RESPONSIBILITIES OF THE PLAN SPONSOR
1.01 The Plan Sponsor shall provide the Claims Administrator
with a copy of the Plan Document and any other documents
describing the benefit program(s) which the Claims
Administrator may rely upon in performing its
responsibilities under this Agreement.
1.02 The Plan Sponsor shall have final discretionary
authority to determine the benefit provisions and to
construe and interpret the terms of the Plan.
1.03 The Plan Sponsor shall have final discretionary
authority to determine eligibility for benefits and the
amount to be paid by the benefit program(s) .
1.04 The Plan Sponsor shall conduct the ERISA claims appeal
process
1.05 Unless specifically delegated to the Claims
Administrator by this Agreement, the Plan Sponsor shall
be responsible for the proper administration of the Plan
including:
a. providing the Claims Administrator a complete and
accurate list of all individuals eligible for
benefits under the benefit program(s) upon which
the Claims Administrator shall be entitled to rely
7486T
1
............................
until it receives documentation of any change
thereto;
b. notifying the Claims Administrator on a monthly
basis of changes in eligibility;
C. distributing to all eligible Participants,
Dependents and Beneficiaries all appropriate and
necessary materials and documents, including but
not limited to benefit program booklets, summary
plan descriptions, material modifications, the Plan
Document, amendments to the Plan Document,
identification cards, enrollment applications and
notice forms necessary for the operation of the
Plan;
d. providing the Claims Administrator with any
additional information necessary to perform its
functions under this Agreement as may be requested
by the Claims Administrator from time to time;
e. maintaining adequate funds from which the total
cost of all claims for each preceding [week/month)
will be paid to the Claims Administrator by wire
transfer. Funds must be provided within forty-
eight (48) hours of phone notification by the
Claims Administrator to a person designated by the
Plan Sponsor.
1.06 The Plan Sponsor shall be responsible for all taxes,
assessments and fees levied by any local, state or
federal authority in connection with the Claims
Administrator's duties pursuant to this Agreement.
1.07 The Plan Sponsor shall be responsible for the Plan's
continuing compliance with federal, state and local laws
and regulations, including but not limited to the
Internal Revenue Code, the Employee Retirement Income
Security Act of 1974 (ERISA) , and the Consolidated
Omnibus Budget Reconciliation Act of 1985 (COBRA) , and
the Health Insurance Portability and Accountability Act
of 1996 (HIPAA) . The Plan Sponsor, and not the Claims
Administrator, is the "plan administrator" for purposes
of 29 USC Section 1002(16) (a) and 26 USC Section
4980B(g) (3) and the "plan sponsor" for purposes of 29
USC Section 1161, et seq. The Plan Sponsor shall be
responsible for determining whether it is subject to
COBRA and for notifying Participants, Dependents and
Beneficiaries of their COBRA rights both initially and
upon the occurrence of a qualifying event, for
calculating and collecting premiums for COBRA
continuation of coverage and for promptly notifying the
Claims Administrator when an individual is no longer
eligible for COBRA continuation of coverage.
7486T
2
1.08 The Plan Sponsor shall be responsible for defending any
legal action brought against the Plan, including a claim
for benefits by or on behalf of any individual or
entity, including but not limited to any Participant or
former Participant, Dependent, Beneficiary, any
fiduciary or other party. This responsibility includes
the selection and payment of counsel. The Plan Sponsor
shall not settle any legal action or claim without the
prior consent of the Claims Administrator if the action
or claim could result in the Claims Administrator being
liable, including for example, any liability for
contribution to or indemnification of the Plan Sponsor
or other third party either directly or indirectly.
1.09 In the event the Claims Administrator does not have
adequate information to complete the Certificate of
Group Health Coverage as required by HIPAA, the Plan
Sponsor shall be responsible for completing the missing
information on the Certificate and forwarding it to the
Participant or Dependent upon their termination from the
Plan or upon request within 24 months of termination.
SECTION II DUTIES AND RESPONSIBILITIES OF THE CONTRACT
ADMINISTRATOR
2.01 The Claims Administrator agrees to perform the following
administrative services for the Plan Sponsor:
a. assist in the preparation and printing of the Plan °
Document, benefit program booklets, identification
cards, and other materials necessary for the
operation of the Plan;
b. process all eligible claims incurred after the
effective date of this Agreement which are properly
submitted in accordance with the procedures set
forth in the Plan Document. Checks will be issued
on the Claims Administrator's check stock, but the
responsibility for funding benefits is the Plan
Sponsor's and the Claims Administrator is not
acting as an insurer. The Claims Administrator
shall make reasonable efforts to determine that a
claim is covered under the terms of the benefit
program(s) , to apply the coordination of benefits
provisions, identify subrogation claims, and make
reasonable efforts to recover subrogated amounts
administratively, and prepare and distribute
benefit payments to Participants, Dependents and
Beneficiaries and/or service providers;
C. perform reasonable internal audits;
d. answer inquiries from the Plan Sponsor,
Participants, Dependents and Beneficiaries, and
service providers regarding the terms of the Plan,
although final authority for construing the terms
7486T
3
......... . .
of the Plan's eligibility and benefit provisions is
the Plan Sponsors;
e. prepare and provide to the Plan Sponsor monthly
reports of claims paid under the Plan in accordance
with Attachment C;
f. prepare and provide the Plan Sponsor with an annual
report of the operations of the Plan in accordance
with Attachment C;
g. provide information to the Plan Sponsor for
preparing Form 55001s; however, the Plan Sponsor
shall be solely responsible for insuring timely
filing of the Form 55001s;
h. coordinate with any stop-loss insurance carrier;
i. when "preferred provider" benefits are provided,
maintain a network of hospital and professional
providers; paid claims will reflect any negotiated
provider discounts;
j . perform utilization management services including,
preadmission review, admission review, length of
stay assignment, focused concurrent review,
discharge planning, individual case management and
retrospective review.
k. provide a Certificate of Group Health Coverage to
Participants and Dependents when their coverage
under this Plan terminates or upon their request
within 24 months of termination. In the event the
Claims Administrator does not have adequate
information to complete the Certificate, the Plan
Sponsor will be responsible for completing the
missing information on the Certificate and
forwarding it to the Participant or Dependent.
SECTION III LIMITS OF THE CLAIMS ADMINISTRATOR'S RESPONSIBILITY
3.01 It is recognized and understood by the Plan Sponsor that
the Claims Administrator is not an insurer and that the
Claims Administrator's sole function is to provide
claims administration services and the Claims
Administrator shall have no liability for the funding of
benefits.
3.02 If during the course of an audit performed internally by
the Claims Administrator pursuant to Section 2.Ol,c. or
by the Plan Sponsor pursuant to Section VI of this
Agreement any error is discovered, the Claims
Administrator shall use reasonable efforts to recover
any loss resulting from such error.
7486T
4
3.03 The Claims Administrator is an independent contractor
with respect to the services being performed pursuant to
this Agreement and shall not for any purpose be deemed
an employee of the Plan Sponsor.
3.04 This Agreement is between the Claims Administrator and
the Plan Sponsor and does not create any legal
relationship between the Claims Administrator and any
Participant, Dependent, Beneficiary or any other
individual.
3.05 It is recognized by the parties that errors may occur
and it is agreed that the Claims Administrator will not
be held liable for such errors unless they resulted from
its gross negligence or willful misconduct. The Plan
Sponsor agrees to defend, indemnify, and hold harmless
the Claims Administrator from all claims, damages,
liabilities, losses, and expenses arising out of the
Claims Administrator's performance of administration
services under the terms of this Agreement, so long as
they did not arise out of the Claims Administrator's
gross negligence or willful misconduct.
SECTION IV FEES OF THE CLAIMS ADMINISTRATOR
4.01 By the first of each month, The Plan Sponsor shall pay
the Claims Administrator in accordance with the fee
schedule set forth in Attachment D which is incorporated
herein by reference.
4.02 Late Payments
a. If, for any reason whatsoever, the Plan Sponsor
fails to make a timely payment required under this
Agreement, the Claims Administrator may suspend
performance of services to the Plan Sponsor,
including processing and payment of claims, until
such time as the Plan Sponsor makes the required
payment, including interest as set forth in b.
below.
b. The Claims Administrator will charge interest to
the Plan Sponsor on all late payments, including
amounts paid to reinstate this Agreement after
termination pursuant to Section 9.05, at the
average annual prime rate posted by Seattle First
National Bank plus two (2) percent on the amount of
the late payments for the number of days late.
Interest will be in addition to any other amounts
payable under this Agreement.
7486T
5
.......................
C. In the event of late payment, the Claims
Administrator may terminate this Agreement pursuant
to Section 9.05. Acceptance of late payments by
the Claims Administrator shall not constitute a
waiver of its right to cancel this Agreement due to
delinquent or nonpayment of fees.
SECTION V OUT-OF-AREA PROGRAM
5.01 B ueCard* Access Fees
Blue Cross/Blue Shield Plans outside of the Washington
and Alaska service area may charge Premera Blue Cross a
fee (referred to as an access fee) for making their
discounted rates and the resulting savings available on
claims incurred by Enrollees. The access fee, if one is
charged, is up to ten (10) percent, but not to exceed
$2, 000 for any claim, of the discount the Plan has
obtained from its providers. The access fee may be
charged only if that Plan's arrangement with the
provider prohibits billing Enrollees for amounts in
excess of the discounted rate. However, providers may
bill for deductibles, coinsurance, amounts in excess of
stated benefit maximums, and charges for noncovered
services. In the event a participating provider
discount cannot be passed along to Enrollees, no
discount or access fee will apply.
*The B1ueCard is a program name established by the Blue
Cross and Blue Shield Association.
When BCWA is charged an access fee, BCWA will pass the
charge along to the Group as a claims expense. If BCWA
receives an access fee credit, BCWA will give the Group
a claims expense credit. Access fees are considered a
claims expense because they represent claims dollars
BCWA is unable to, or in the case of a credit, avoid
paying.
Instances may occur in which BCWA does not pay a claim
(or pay only a small amount) because the amounts
eligible for payment were applied to the deductible
and/or coinsurance. if the Plan's arrangement with its
providers allows the discounted payment rate to apply
when the amount is fully or mostly a patient obligation,
BCWA will pay the Plan's access fee and pass it along to
the Group as a claims expense even though the Group paid
little or none of the claim.
7486T
6
SECTION VI AWIT
6.01 Within thirty (30) days of written notice from the Plan
Sponsor, the Claims Administrator shall allow an
authorized agent of the Plan Sponsor to inspect or audit
all records and files maintained by the Claims
Administrator which are directly pertinent to the
administration of the Plan. Such documents shall be
made available at the administrative office of the
Claims Administrator during normal business hours. The
Plan Sponsor shall be liable for any and all fees
charged by the auditor. Any agent or auditor that has
access to the records and files maintained by the Claims
Administrator shall agree not to disclose any
proprietary or confidential information used in the
business of the Claims Administrator.
SECTION VII SUBROGATION
7.01 The Claims Administrator shall make reasonable efforts
to pursue subrogation claims administratively on behalf
of the Plan. However, the Claims Administrator shall
have no affirmative duty to pursue subrogation claims
beyond those specified in section 2.O1,b. The Plan
Sponsor shall have the sole discretion to bring any
legal claim or action to enforce the Plan s subrogation
provisions. The Claims Administrator will cooperate
with the Plan Sponsor in the event the Plan Sponsor
brings any legal action to enforce the subrogation
provisions of the Plan. Any costs and attorneys, fees
incurred in pursuing such subrogation claims shall be
the responsibility of the Plan Sponsor.
SECTION VIII TERM OF AGREEMENT
8.01 The term of this Agreement shall be the period from
12:01 a.m. on January 1, 1999, to midnight on December
31, 1999 (hereinafter referred to as the "Agreement
Period") .
8.02 Except as stated otherwise in section 9.03 below, the
terms and conditions of this Agreement and the fee
schedule set forth in Attachment D are established for
the Agreement Period.
8.03 The Plan Sponsor acknowledges that the fee schedule set
forth in Attachment D and the services provided for in
this Agreement are based upon the terms of the Plan and
the enrollment as they exist on the effective date of
this Agreement. Any substantial change, whether
required by law or otherwise, in the terms and
provisions of the Plan or in enrollment may require that
the Claims Administrator incur additional expenses. The
parties agree that any substantial change, as determined
by the Claims Administrator, shall result
7486T
7
...............
in the alteration of the fee schedule, even if the
alteration is during the Agreement Period. The phrase
,,any substantial change,, shall include, but not be
limited to:
a. a fluctuation of ten (10) percent or more in the
number of Participants, Dependents and
Beneficiaries as set forth on the census
information included in Attachment B which is
herein incorporated by reference and made a part of
this Agreement;
b. the addition of benefit program(s) or any change in
the terms of the Plan's eligibility rules, benefit
provisions or record keeping rules that would
increase administration costs by more than $2,000;
C. any change in claims administrative services,
benefits or eligibility required by law;
d. any change in administrative procedures from those
in force at the inception of this Agreement which
is agreed upon by the parties;
e. any additional services which the Claims
Administrator undertakes to perform at the request
of the Plan Sponsor which are not specified in this
Agreement such as the handling of mailings or
preparation of statistical reports and surveys not
specified in this Agreement.
SECTION IX TERMINATION
9.01 The Plan Sponsor may terminate this Agreement at any
time by giving the Claims Administrator thirty (30) days
written notice.
9.02 This Agreement will terminate on the last day of the
Agreement Period or the last day of any extension of the
Agreement Period granted by the Plan Administrator.
9.03 Either party may terminate this Agreement effective
immediately by giving written notice to the other if a
party becomes insolvent, makes a general assignment for
the benefit of creditors, files a voluntary petition of
bankruptcy, suffers or permits the appointment of a
receiver for its business or assets, or becomes subject
to any proceeding under any bankruptcy or insolvency
law, whether foreign or domestic. A party is insolvent
if it has ceased to pay its debts in the ordinary course
of business; cannot pay its debts as they become due; or
the sum of its debts is greater than the value of its
property at a fair valuation.
9.04 if loss of services is caused by, or either party is
unable to perform any of its obligations under this
7486T
8
............ .
Agreement, or to enjoy any of its benefits because of
natural disaster, action or decrees of governmental
bodies or communication failure not the fault of the
affected party, such loss or inability to perform shall
not be deemed a breach. The party who has been so
affected shall immediately give notice to the other
party and shall do everything possible to resume
performance. Upon receipt of such notice, all
obligations under this Agreement shall be immediately
suspended. If the period of nonperformance exceeds
thirty (30) days from the receipt of such notice, the
party whose performance has not been so affected may, as
its sole remedy, terminate this Agreement by written
notice to the other party effective immediately. In the
event of such termination, the Plan Sponsor shall remain
liable to the Claims Administrator for all payments due,
together with interest thereon as provided for in
Section 4.02.
9.05 The Claims Administrator may, in its sole discretion,
terminate this Agreement effective as of a missed
payment due date in the event that the Plan Sponsor
fails to make a timely payment required under this
Agreement.
9.06 In the event this Agreement is terminated prior to the
end of the Agreement Period, the Plan Sponsor shall
remain liable to the Claims Administrator for all
delinquent sums together with interest thereon as ...�
provided for in section 4.02 above. Furthermore,
because the Claims Administrator will have incurred
fixed costs which, but for the termination, would have
been recouped over the course of the Agreement Period,
as liquidated damages, and not as a penalty, the Plan
Sponsor shall pay the Claims Administrator an amount
equal to two (2) months administration fee at the rate
set forth in Attachment D multiplied by the average
number of Participants, Dependents and Beneficiaries
covered by the Plan for the immediately preceding six
(6) month period or such shorter period if this
Agreement has not been in effect for a period of six (6)
months. The Plan Sponsor shall remain liable for claims
incurred during the Agreement Period but not paid during
the Agreement Period and for the claims run-out
processing fee set forth in subsection C of Attachment
D.
9.07 Within one hundred twenty (120) days of termination by
either party, the Claims Administrator shall deliver to
the Plan Sponsor an interim accounting. Within fifteen
(15) months of termination the Claims Administrator
shall deliver to the Plan Sponsor a complete and final
accounting of the status of the Plan.
7486T
9
At the expense of the Plan Sponsor, the Claims
Administrator shall make available a record of
deductibles and coinsurance levels for each Participant,
Dependent and Beneficiary and deliver this information
to the Plan Sponsor or its authorized agent.
9.08 For the twelve (12) month period following termination
of this Agreement, the Claims Administrator shall
continue to process eligible claims incurred prior to
termination at the claims run-out processing fee rate
set forth in Attachment D.
SECTION X DISCLOSURE
10.01 It is recognized and understood by the Plan Sponsor that
the Claims Administrator is subject to all laws and
regulations applicable to Claims Administrators and
health care service contractors.
10.02 It is recognized and understood by the Plan Sponsor that
the Claims Administrator is not acting as an insurer and
also is not providing stop-loss insurance.
SECTION XI OTHER PROVISIONS
11.01 Choice of Law
The validity, interpretation, and performance of this
�.✓ Agreement shall be controlled by and construed under the
laws of the State of Washington, unless federal law
applies. Any and all disputes concerning this Agreement
shall be resolved in Ring County Superior Court. The
party substantially prevailing shall be entitled to
recover its reasonable costs, including attorneys' fees.
11.02 Trademarks
The Claims Administrator reserves the right to, the
control of, and the use of the words "Premera Blue
Cross" and all symbols, trademarks and service marks
existing or hereafter established. The Plan Sponsor
shall not use such words, symbols, trademarks or service
marks in advertising, promotional materials, materials
supplied to Participants, Dependents and Beneficiaries
or otherwise without the Claims Administrator's prior
written consent which shall not be unreasonably
withheld.
11.03 Independent Corporation
The Plan Sponsor hereby expressly acknowledges, on
behalf of itself and all of its eligible employees and
their eligible dependents, its understanding that this
Contract Administration Agreement constitutes an
'�.✓' Agreement solely between the Plan Sponsor and the Claims
Administrator, that the Claims Administrator is an
7486T
10
... ............ .
independent corporation operating under a license with
the Blue Cross and Blue Shield Association, an
association of independent Blue Cross and Blue Shield
Plans (the "Association") permitting the Contract
Administator to use the Blue Cross Service Mark in the
States of Washington and Alaska, and that the Claims
Administrator is not contracting as the agent of the
Association.
The Plan Sponsor further acknowledges and agrees that it
has not entered into this Contract Administration
Agreement based upon representations by any person other
than the Claims Administrator, and that no person,
entity or organization other than the Claims
Administrator shall be held accountable or liable to the
Plan Sponsor for any of the Claims Administrator's
obligations to the Plan Sponsor created under this
Contract Administration Agreement. This provision shall
not create any additional obligations whatsoever on the
Claims Administrator's part other than those obligations
created under other provisions of this Contract
Administration Agreement.
11.04 Notice
Except for the notice given pursuant to section 1.04,e. ,
any notice required or permitted to be given by this
Agreement shall be in writing and shall be deemed
delivered three (3) days after deposit in the United
States mail, postage fully prepaid, return receipt
requested, and addressed to the other party at the
address as shown below.
11.05 Intecrration
This Agreement, including any appendices or attachments
incorporated herein by reference, embodies the entire
Agreement and understanding of the parties and
supersedes all prior oral and written communications
between them. The terms hereof may be modified only by
a writing signed by both parties hereto.
11.06 Assignment
Neither party shall assign this Agreement or any of its
duties or responsibilities hereunder without the prior
written approval of the other.
11.07 Year 2000 Compliance
Commencing on July 1, 1999 and continuing thereafter,
the Group and Premera Blue Cross, referred to hereafter
as the "parties," shall exchange all electronic data in
compliance with the data transfer specifications
described below. If data transmitted on or after July
1, 1999, by either party (each referred to as "Data
7486T
11
Transmitter" or "Data Receiver" as appropriate) are not
in compliance with such data transfer specifications,
the Data Transmitter shall, at its sole cost and
�.� expense, promptly generate and resubmit data in
compliance with the data transfer specifications, in a
manner that minimizes interruption of the Data
Receiver's business processes, with time being of the
essence. As further described in the paragraph below,
at our request, the parties will conduct a trial between
July 1, 1999 and October 31, 1999, to exchange data in a
Year 2000 test environment to ensure that data exchanged
between the parties satisfy the data transfer
specifications described below.
For all transmissions of electronic data on and after
July 1, 1999, the parties shall use the electronic data
translators or formats (-Permitted Data Formats")
described in the table below. The Permitted Data
Formats require Patient Date of Birth to be transmitted
in a 4 digit form (i.e. , mm/dd/yyyy) . As a part of our
Year 2000 Project, a testing period has been set aside
between July 1, 1999 and October 31, 1999. This testing
period allows the parties to have the opportunity to
exchange data in a test environment to ensure that both
parties receive and transmit Year 2000 compliant data.
If we desire to conduct such a test with the Group, our
Year 2000 Project staff will contact and schedule the
Group for the test, and such scheduling efforts will
start on or about June 1, 1999.
PERMX-x D DATA 70FJQTS DATA FIELDS RZQUIRING
4 DIGIT YEARS
NSF Patient Date of Birth
Institutional-vs 4.0 and
UP
Professional-vs 1.04 and
UP
Ansi x12 - DCDS 837 vs Patient Date of Birth
3 041
COB - vs 3.0 and up Patient Date of Birth
ITS release 8 Patient Date of Birth
ECC - Revised 6/01/1998 Patient Date of Birth
Envoy - vs 2.1 and up Patient Date of Birth
7486T
12
,.
-
SECTION XII ATTACHMENTS TO THE CONTRACT ADMINISTRATION AGREEMENT
12.01 The following attach to and become part of the body of
this Agreement and they are herein incorporated by
reference.
Attachment A - Plan Document No. 7486T
Program Number 13595
Program Number 13596
Program Number 13597
Program Number 17620
Program Number 17884
Attachment B - Census
Attachment C - Reporting
Attachment D - Fee Schedule
Attachment E - Right Of Conversion
7486T
13
...................... .
The parties below have signed as duly authorized officers and have
hereby executed this Agreement. If this Agreement is not signed and
returned to the Claims Administrator within sixty (60) days of its
delivery to the Plan Sponsor or its agent, the Claims Administrator will
assume the Plan Sponsor's concurrence and the Plan Sponsor will be bound
by its terms.
IN WITNESS WHEREOF the parties hereto sign their names as duly
authorized officers and have executed this Agreement.
CITY OF KENT
BY: DATE:
Title
BY: DATE:
Title
Address:
PREMERA BLUE CROSS
BY: DATE: December 21, 1998
Title: Pre 'dent and
Chief Executive Officer
Address: P.O. Box 327
Seattle, WA 98111-0327
7486T
14
Attachment A
CITY OF KEW
(Plan Sponsor)
PLAN DOCUME=
The employee benefit programs set forth in the Plan Document are
available to certain eligible individuals as defined within the benefits
programs. The entire Plan Document consists of the following: the Plan
Document face page, the attached benefit booklet for Program Number
13595, Program Number 13596, Program Number 13597, Program Number 17620,
Program Number 17884, The enrollment applications of eligible persons on
file with the City of Kent and all attachments, endorsements, and riders
included or issued hereafter. All benefits of this Plan Document are
subject to the terms and conditions stated herein and any endorsements
or riders included or issued thereafter. The City of Kent has the
discretionary authority to determine eligibility for benefits and to
construe the terms used in this Plan Document.
Premera Blue Cross has been selected by the City of Kent to administer
the benefits of this Plan Document. Premera Blue Cross is not the
Underwriter of this Plan Document. The City of Kent is solely and
totally responsible for: funding benefits under the benefit programs;
compliance with all applicable laws and regulations affecting the
benefit programs; and fiduciary liability for the benefit programs. If,
for any reason, the Contract Administration Agreement between Premera
Blue Cross and the City of Kent terminates, Premera Blue Cross shall be
relieved of its administrative duties under this Plan Document, except
as otherwise provided in the Contract Administration Agreement.
This Plan Document attaches to and becomes a part of the Administrative
Service Agreement effective January 1, 1999.
CITY OF KENT
By: Date:
Title
By: Date:
Title
PLAN DOCUMENT EFFECTIVE DATE: January 1, 1999
PLAN DOCUMENT NUMBER: 7486T
7486T
15
Attachment B
Census Information
Administration Fees effective January 1, 1999 are based on the
following:
Number of Active and Retired Enrollees:
Employee Spouse Children
Medical/RX 719 476 764
Dental 758 496 820
Vision 757 494 820
Number of COBRA Enrollees:
Medical/RX 2 1 0
Dental 0 0 0
Vision/RX 2 1 0
Other Carriers Offered: Group Health Cooperative.
7486T
16
........ ...
Attachment C
Reporting
The following reports will be provided to the Plan Sponsor within the
fees set forth in Attachment D:
Report Title Frequency
Weekly Claims Recap Weekly
Detail Claim Runs Monthly
Premium/Claims Report Monthly
Large Claims Analysis Yearly
7486T
17
Attachment D
Fees of the Claims Administrator
Pursuant to the Contract Administration Agreement, the Group shall pay
the Claims Administrator a fee, as set forth below, for administrative
services.
A. Administration Fees:
Composite
13595, -01, -99 $ 37.78
13596, -01, -99 $ 37.78
17620 $ 37.78
13597, -01 $ 5.64
17884 $ 1.74
B. Other Fees:
$1.75 per booklet
$ .75 per Z.D. card
Prescription drug charge - $1.20 per claim
Conversion Contract Fee - $1,000 per conversion
C. Claims runout processing fee:
5% of runout claims processed
7496T
18
Attachment E
Right of Conversion for Terminated
Plan Participants and their Dependents
The Plan Sponsor requests that the Claims Administrator provide a
conversion privilege to terminated Plan Participants and their
dependents in consideration of the following:
Responsibilities of the Claims Administrator
The Claims Administrator shall make available to Plan Participants and
their dependents an opportunity to obtain health care coverage
(hereinafter referred to as Conversion Contract) when they are no longer
eligible for coverage under the Plan due to:
• Termination of employment.
• Termination of benefits for the class in which the Plan Participant
or dependent belongs.
• A covered dependent's attainment of the limiting age.
• A covered spouse's legal separation or divorce.
• Death of a covered employee.
The Claims Administrator shall not be required to issue a Conversion
Contract if the Plan Participant or dependent becomes covered under a
group health insurance policy within 31 days after termination of his or
her coverage under the Plan.
Application and payment of the applicable rate for the Conversion
Contract must be made by the Plan Participant or dependent within 31
days after such individual's conversion privilege of its group health
coverage contracts.
Rates for the Conversion Contract shall be determined by the Claims
Administrator and be the same as those then in effect for coverage
offered under the standard conversion privilege of its group health
coverage contracts. Rates will not be guaranteed and the Claims ,
Administrator will have the right to change the rate of any Conversion
Contract.
Compensation
The Plan Sponsor shall pay the Claims Administrator a $1,000 conversion
privilege fee for each conversion contract issued to a former Plan
Participant or dependent. The Claims Administrator shall notify the
Plan Sponsor of the conversion privilege fees owed in connection with
the weekly notification of claims paid.
7486T
19
/01
Kent City Council Meeting
Date March 16. 1999
Category Consent Calendar
1 . SUBJECT: MENTAL HEALTH HOUSING FOUNDATION SEWER
EXTENSION - BILL OF SALE
2 . SUMMARY STATEMENT: As recommended by the Public Works
Director, accept the Bill of Sale for the Mental Health Sewer
Extension submitted by Mental Health Housing Foundation for
continuous operation and maintenance of 140 feet of sanitary
sewers and, release of bonds after the expiration period. The
project is located at 26824 108th Avenue Southeast .
3 . EXHIBITS: Vicinity map
4 . RECOMMENDED BY: Public Works Director
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6G
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Kent City Council Meeting
Date March 16 . 1999
W.�. Category Other Business
1 . SUBJECT: SEWER RATE INCREASE - AUTHORIZATION
2 . SUNKARY STATEMENT: As recommended by the Public Works/
Planning Committee, direct the City Attorney to prepare the
necessary ordinance for adoption of the sewer rate increase.
3 . EXHIBITS: Public Works Director memorandums
4 . RECOMMENDED BY: Public Works/Planning Committee
(Committee, Staff, Examiner, Commission, etc . )
S . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6H
DEPARTMENT OF PUBLIC WORKS
March 11, 1999
TO: Mayor &-City Council
FROM: Don Wickstrom
RE: Sewer Rate Increase
As further background information for Council, the sewer rate increase was brought
before the Government Committee of the Chamber of Commerce on March 10'.
They endorsed same and are recommending it to their full Board.
DEPARTMENT OF PUBLIC WORKS
February 1, 1999
TO: Public Works/Planning_Committee
FROM: Don Wickstro
RE: Sewer Comp Plan
As intended, this item was carried over from the January 2& Committee meeting. A copy of the
memo from that meeting is enclosed. Nothing new thereon is planned to be presented. It should
be noted, however that the SEPA process for the Plan has not yet been completed. Because this
is a planning level document the SEPA process shouldn't raise any issues unlike that associated
with a specific construction project. Further the document itself presents nothing new or
controversial which supports a high probability of a clean Determination of Non-Significance.
Since we are on a tight time frame, we ask that the Committee recommend adoption of the Comp
Plan to the full Council subject to the issuance of a Determination of Non-Significance (DNS) or
a Mitigated Determination of Non-Significance(MDNS)wherein the conditions thereof are of an
inconsequential nature as determined by the Public Works Director to the content of the Plan.
With respect to the sewer rate increase which is a separate and stand alone issue from the Comp ---
Plan it is recommended that the rate increase be adopted as proposed with the effective date
thereof being July 1, 1999. The Finance Director did bring to my attention that the City's utility
tax, at least that portion thereof dedicated for street purposes (1%), is added on at the end as a
separate item on the customer's bill. She was originally recommending that it be included in this
rate proposal. The net financial impact thereof to the customer is zero but to May it cleans up an
accounting issue for her. Since the drainage rates as well as the water rates are similarly
affected, it is both our recommendation that this particular issue should be differed to 2000
budget process. To do only the sewer now would raise unnecessary difficulties with the billing
computer program. It should be noted that said 1% was not included in calculating the 4.5% rate
increase therefore, the rates are as they were proposed.
MOTION: Recommends to the full Council adoption the Sewer Comp Plan subject to the
issuance of a DNS or MDNS where the conditions thereof are of an inconsequential nature as
determined by the Public Works Director to the content of the Plan.
MOTION: Recommends to the full Council adoption of the Sewer rate increase as proposed
herein with the effective date of July 1, 1999 and direct the City Attorney to prepare and bring
back to the full Council the necessary Ordinance for same.
heI899 �.•�
DEPARTMENT OF PUBLIC WORKS
January 20, 1999
TO: Public Works/Planning Committee
FROM: Don Wickstrom
RE: Sewer Comp Plan
Enclosed is the Updated Sewer Comprehensive Plan along with other pertinent
information. The discussion at this meeting well be the introduction of the Comp
Plan and a rate increase issue. Action will be sought at the next Committee meeting.
The real driver behind the update of the Sewer Comprehensive Plan is the fact that
the service area of the City's Sewer System includes portions of unincorporated King
County. While said area is relatively small with respect to the entire service area to
provide sewer service thereto, a County franchise is required and our existing one has
or is about to expire. To obtain a new franchise, the Countv requires an updated
Comp Plan. Our original Comp Plan was developed in 1980 and identified
approximately $3,500,000 (1980 dollars) worth of improvements mostly rehabs and
rebuilds. Over the years these projects have all been completed. Since the 1980
Comp Plan, the only new significant project identified is the East Hill Interceptor
project, which is presently fully funded. With its completion, the City will have a
relatively new system that is capable to service the City's growth needs to full build-
out.
It's important to note we have been able to accomplish all this without issuing new
debt or,raising rates. In fact, the sewer portion of our Sewerage Utility is debt free.
While sewer rates have gone up over the years, those increases have been attributed
to Metro's (now King County) portion of the rate. Further, at least one of those
years the Utility absorbed the Metro increase versus passing it on. Also, for years
because the Utility pays the State a utility tax (approx. 1%) predicated on gross
revenues as Metro's increases were passed, on the Utility absorbed the State tax
increase attributed thereto. In addition, the State utility tax rate was increased at
least once for which it was also absorbed. Further the City's utility tax rate has had
increases over the years for which they were also absorbed. These absorbtions along
with those associated with labor, material, and equipment costs were appropriate
when the revenue stream so allowed. However, as was noted by the Finance Director
during the 1999 budget discussions, a rate increase in the City's portion of the sewer
rate is now necessary in order for the sewer to pay its operating expenses without
encroaching on Storm Drainage revenues of the Sewerage Fund. As reflected in the
attached table we recommend a 4.5% increase in the overall sewer rate with an
affected date of April 1, 1999. This would equate to an increase of a $1.09 per
month in the single-family residential rate. Such a rate increase would be adequate to
recoup our expenses including covering our annual miscellaneous improvement
program and retaining a one time minor emergency fund of $500,0004600,000 to
draw on should the case arise.
ACTION: Continue to next Committee meeting
MPOS99
SEWERAGE FUND
1999-2004 REVISED FORECAST
(AMOUNTS IN 000's)
SEWER PORTION ONLY
im 2000 2001 2002 2003
Forecast Forecast Forecast Forecast Forecast Forecast Priority
Sewer Operating Revenue' 12,182 12.625 13,110 14,264 14,290 14,316
Sewer Operating Expenses
Existing Expenses 11,595 12,062 12,576 13,733 13,811 13.892
Additional staff,supplies,services and equipment 86 88 90 93 95 98
Total Sewer Operating Expenses 11,681 12,160 12,666 13,825 13,906 13,990
Sewer Operating Income(Loss) 501 475 444 438 384 326
Other Financial Sources
Miscellaneous Revenue 34 34 34 34 34 34
Interest Income
Total Other Financial Sources 34 34 34 34 34 34
Net Available for Expenditures 535 509 478 472 418 360
Expenditures
Debt Service-Existing
-Debt Service-1999 Issue" 97 97 97 97 97
Total Expenditures 0 97 97 97 97 97
Net Available for Capital Projects 535 412 381 375 321 263
Proceeds from Long-Tenn Debt" 1,183
Total Available for Capital Projects 1,718 412 381 375 321 263
Capital Project Requests
l..d
East Hill Interceptor" 1,183 0 0 0 0 0 1
Miscellaneous Sewer Lines 270 281 291 303 315 327 2
City-wide Technology Plan 250 250 3
Total Capital Project Requests 1,703 531 291 303 315 3
Total Revenues Over(Under)Capital Projects 15 (119) 90 72 6 (64)
Beginning Working Capital 603 618 499 589 661 667
Ending Working Capital 618 499 589 661 667 603
Increase in revenues 4.327%above Finance's projection.
Reduction in the East Hill Interceptor capital request and the related debt service.
City of Kent
^swer Rate History(1989- 1998)
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
City Charge 6.00 6.00 6.00 6.00 5.02 5.02 5.10 5.14 5.14 5.14
Metro Charge 10.45 11.60 13.20 13.20 13.62 15.90 17.95 19.10 19.10 19.10
Total 16.45 17.60 19.20 19.20 18.64 20.92 23.05 24.24 24.24 24.24
' Residential unit changed from 900 cf to 750 cf.
§ 7.04.330
by the director that the above charge has not been Sec. 7.04.300. Water meters for metro bill-
paid in the event the payment is not made. ing.
(Code 1986,§7.05.300;Ord.No.2897,§ 1(7.05.300),
2-6-90) All sewer accounts for other than single-family
State law reference—Assessments on omitted property, residential uses must have water meters or sewer
RCW 35.44.360. meters for hillinv rnirnneca
§ 7.04.330
by the director that the above charge has not been Sec. 7.04.300. Water meters for metro bill-
paid in the event the payment is not made. ing.
(Code 1986,§7.05.300;Ord.No.2897,§ 1(7.05.300), All sewer accounts for other than single-family
2-6-90)
te
State law reference—Assessments on omitted property, residential uses must have water meters or sewer
RCw 35.44.360. meters for billing purposes.
(Code 1986,§7.05.330;Ord.No.2897,§ 1(7.05.330),
Sec. 7.04.280. Schedule of charges; for ser- 2-6-90)
vice within city.
The following are the sanitary sewer service Sec. 7.04.310. Exemption meters.
charge for service inside the city: The amount of flow for the purpose of sewer
service billing may be measured by a sewer meter
7�pe of service Charge per month installed and maintainer] at. the customer's es
1. Single-family resi- �� pense or by reading a water meter with allowance
dential. 824.24 Ay;33 made for water measured by any exemption meter
2. Duplex residential; which has been approved by both METRO and the
each unit separately city.
charged. a 25.33 (Code 1986,§7.05.340;Ord.No.2897,§ 1(7.05.340),
3. Single-family resi- 2-6-90)
dential/Lifeline: Eli-
gibility criteria for Sec. 7.04.320. Certification of sewer meters.
Lifeline Rate shall
Li established by city All sewer meters shall be certified for accuracy
be t least
council. `2�32. 13 at once each year by an independent testing
4. All other than single- agency. If the city demands an inspection other
family residential, than a regular annual inspection and the inspec-
shall be billed in ac- tion reveals that the meter is operating properly
cordance with the the city shall bear the cost of the inspection,
consumption of wa- otherwise,the cost shall be borne by the customer.
ter and at the follow- q (Code 1986.§7.05.350:Ord.No. 2897. § 1(7.05.350).
ing rate, except that �t 3.36 2-6-90)
no monthly bill shall $&4;-per 100 cubic
be less than $24.24. feet per month Sec. 7.04.330. Sewer service to customers ob-
(Code 1986, §7.05.310;Ord.No.2827,§ 1(7.05.310), taining water from sources
12-20-88; Ord. No. 2873, § 1(7.05.310), 10-3-89; other than the city water util-
Ord. No. 2897, § 1(7.05.310;. 2-6-90; Ord. No. ity.
2951, § 1, 11-21-90; Ord. No. 2962, § 1, 2-6-91; For sewer service to customers obtaining water
Ord. No. 3077, § 1. 11-17-92. Ord. No. 3140, § 1, from sources other than the city water utility, the
10-19-93, Ord. No. 3198, § 1, 11-2-94; Ord. No. following regulations shall apply:
3250, § 1, 11-21-95)
State law reference—Classification of sewer rates, RCw 1. Single-family residential customers shall
35.67.020. pay the flat rate which is on file in the city
clerk's office.
Sec. 7.04.290. Schedule of charges for ser- 2. All customers other than single-family res-
vice outside city. idential shall install a meter on their source
Sewer service charges for customers residing of water within thirty (30) days of date of
outside the city shall be the charges as on file in application or service will be discontinued.
the city clerk's office. Upon request of the customer, the city will
(Code 1986,§7.05.320;Ord.No.2897,§ 1(7.05.320), install a meter in accordance with its stan-
W, 2-6-90) dard practice for.such installations.
Supp. No 12 521
Kent City Council Meeting
Date March 16 , 1999
Category Consent Calendar
1 . SUBJECT: KING COUNTY WATER DISTRICT NO. 111 FRANCHISE
AGREEMENT ORDINANCE
2 . SU1QLkRY STATEMENT: Upon concurrence by the City Attorney
with the language therein, authorization for the Mayor to sign
the King County Water District #111 Franchise Agreement
Ordinance which grants Water District #111 authority to operate
and maintain a domestic water supply system for Water District
#111' s customers residing within the City limits of Kent . This
franchise ordinance was introduced at the March 2, 1999 Council
meeting.
3 . EXHIBITS: Water District #111 Franchise Agreement Ordinance
4 . RECOMMENDED BY: Council (3/2/9 9)
(Committee, Staff, Examiner, Commission, etc. )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
DISCUSSION:
ACTION:
Council Agenda
Item No. 6I
ORDINANCE NO.
AN ORDINANCE of the City Council of the City
of Kent, Washington, granting unto King County Water
District No. 111, its successors and assigns, the right,
privilege, authority, and franchise for twenty-five years, to
lay,construct, extend, repair, renew and replace water pipes,
mains, and facilities under, along, and/or across certain
designated streets, avenues,roads, alleys,rights-of-way and
other public places of the City, all in order to operate a
domestic water supply system for the purpose of public sale
and distribution of water to customers within the City.
WHEREAS, both the City and the District are public agencies authorized
►' by law to engage in furnishing domestic water service, and to that end, the City may,
through the City Council, grant franchises with respect to the rights,powers, duties, and
obligations of the parties regarding the use of public rights-of-way and other public
property, the provision of services, the maintenance and operation of facilities,the right
to promulgate rules and regulations, to levy and collect special assessments, rates,
charges, service charges and connection fees, the performance of contractual obligations
and any other matters arising out of the provision of District service to areas within the
City, all pursuant to and in accordance with RCW Sections 39.34.080, 35.92.010,
35A.47.040, and 57.08.045; and
WHEREAS, the City has determined that the District can more
economically provide water service to that certain area of its corporate limits as described
in Exhibit A; and
WHEREAS,the District has the ability and desire to provide water service
to this area; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION]. FRANCHISE GRANTED. The City of Kent, Washington
(the "City" herein)hereby grants to King County Water District No. I I I (the "District"
herein), a water district formed under Ch. 57.08 RCW, its successors and assigns, subject
to the terms and conditions set forth hereinafter, a franchise for a period of twenty-five
(25)years, commencing on the effective date of this ordinance. This franchise shall grant
to the District the right and privilege to lay down,construct,relay, connect,replace and/or
maintain such and so many pipes, conduits and mains, and all other appurtenances,
appendages, and facilities thereto, in, along,through,and under the avenues, streets, lanes,
alleys, highways, and other public places and ways in that portion of the Kent City limits
as specifically described in Exhibit A, attached hereto and incorporated herein, as may
be necessary, convenient and/or proper in order to provide water service to the public, and
for that purpose to make any and all connections which may be necessary, convenient
and/or proper.
SECTION 2. AUTHORITY TO MANAGE, REGULATE, AND
CONTROL WATER SYSTEM. After the construction of the water facilities as
contemplated under this franchise, the District shall have the sole responsibility to
maintain, manage, conduct and operate its water system as installed within the area
described in Exhibit A,together with any additions, extensions and betterments thereto.
SECTION 3. AUTHORITY TO FIX SERVICE RATES. The rates
charged to the water service customers within the area described in Exhibit A shall be
fixed, altered, regulated, and controlled solely by the District, pursuant to the limitations
2
on such authority as set forth in Ch. 57.08 RCW, or any applicable regulations
promulgated thereafter by the state on the subject of rates and charges for water service.
SECTION 4. NON-EXCLUSIVE GRANT. This grant or privilege
shall not be deemed or held to be exclusive. It shall in no manner prohibit the City from
entering into other agreements or franchises of a like nature or franchises for other public
or private utilities, in, over, along, across, under, and upon any of the streets, avenues,
highways, alleys, or public places, or ways as herein described, and shall in no way
prevent or prohibit the City from using any of said streets, avenues, etc., or affect its
jurisdiction over them or any part of them with full power to make all necessary changes,
relocations, repairs, or maintenance of same as it deems fit.
SECTION S. APPROVAL OF PLANS. Prior to construction of any of
the pipes, conduits, mains, facilities, and appurtenances in the area described in Section
I herein, the District shall submit to the Director of Public Works (hereinafter the
"Director") in triplicate,the plans drawn to an accurate scale, showing the exact location,
character, position, dimension, depth, and height of the work to be done. The plans shall
accurately depict the relative position and location of all pipes, conduits, mains,
manholes, facilities, and appurtenances to be constructed, laid, re-laid, installed, replaced,
repaired, connected or disconnected, and the existing street, avenue, alley, highway, right-
or-way or property lines. All streets, avenues, highways, alleys, lanes, or ways denoted
thereon shall be designated by their names and number and the local improvements
therein such as roadway pavement, shoulders, sidewalks, curbs, gutters, ditches,
driveways, parking strips, telephone or electric distribution poles, conduits, storm, gas,
or water pipe lines as may exist on the ground or area sought to be occupied shall be
outlined.
In the construction proposed by the District, all materials and equipment shall be
as specified in the District's general conditions and standards and as approved by the City.
The exact class and type to be used shall be shown on the plans, as will the equipment to
`,-,, 3
be used and the mode of safeguarding and facilitating the public traffic during
construction. The manner of excavation, construction installation,backfill, and temporary
structures (such as traffic turnouts, road obstructions, etc.) shall meet with the approval
of, pass all requirements of, and be constructed under the supervision of the Director.
Prior to approval of any work under this franchise, the Director may require such
modifications or changes as he deems necessary to properly protect the public in the use
of the public places, and may fix the time or times within and during which such work
shall be done.
The District shall pay to the City such amounts as, in the judgment of the
Director, are reasonably necessary to investigate and process any plans for construction
work, to inspect such work, to secure proper field notes for location, to plat such locations
on the permanent records of the City Public Works Department, to supervise such work,
or to inspect or re-inspect as to maintenance, during the progress of or after the repair of,
any of the initial construction authorized by this franchise. The City shall make its best
efforts to complete all inspections in a timely manner.
SECTION 6. PROTECTION OF PUBLIC. Whenever an accident,
faulty operation, or excavation or fill associated with the construction, installation,
maintenance or repair of the facilities authorized under this franchise has caused or
contributed to a condition that appears to substantially impair the lateral support of the
adjoining street or public place, or endangers the public,and adjoining public place, street
utilities or City property,the Director may direct the District, at its own expense, to take
actions to protect the public,adjacent public places, City property and street utilities, and
may require compliance within a prescribed time.
In the event that the District fails or refuses to take the actions directed promptly,
or fails to fully comply with such directions given by the Director, or if emergency
conditions exist which require immediate action, the City may enter upon the property
and take such actions as are necessary to protect the public,the adjacent streets, or street
utilities, or to maintain the lateral support thereof, including placing of temporary shoring,
4
}
backfilling, alterations of drainage patterns and any other actions reasonably necessary
to decrease the possibility of earth movement, or actions regarded as necessary safety
precautions; and the District shall be liable to the City for the costs thereof.
SECTION 7. REPAIR OF STREETS,SIDEWALKS,AND PUBLIC
PLACES. After construction, maintenance,or repair of the facilities authorized by this
Agreement, the District shall repair and restore any damaged or injured streets, avenues,
highways, or public places, or affected portions of same, to their original condition. The
Director shall have final approval of the condition of such streets and public places after
completion of construction.
SECTION 8. INDEMNIFICATION. The District hereby releases,
covenants not to bring suit and agrees to indemnify, defend, and hold harmless the City,
its officers, officials, employees, agents, and representatives, from any and all claims,
costs,judgments,awards, or liability to any person, including claims by the District's own
employees to which the District might otherwise be immune under Title 51 RCW, arising
from injury or death of any person or damage to property of which the negligent acts or
omissions of the District, its agents, servants, officers, or employees in performing this
franchise agreement are the proximate cause. The District further releases,covenants not
to bring suit and agrees to indemnify, defend and hold harmless the City, its officers,
officials,employees,agents and representatives from any and all claims,costs,judgments,
awards or liability to any person including claims by the District's own employees, to
which the District might otherwise be immune under Title 51 RCW, arising against the
City solely by virtue of the City's ownership or control of the rights-of-way or other
public properties by virtue of the District's exercise of the rights granted herein, or by
virtue of the City's permitting the District's use of the City's rights-of-way or other public
property, based upon the inspection or lack of inspection of work performed by the
District, its agents, and servants, officers, or employees in connection with work
authorized on the City's property or property over which the City has control, pursuant
5
to this franchise agreement or pursuant to any other permit or approval issued in
connection hereto.
This covenant of indemnification shall include,but not be limited by this reference
to, claims against the City arising as a result of the negligent acts or omissions of the
District, its agents, servants, officers, or employees in barricading or providing other
warnings of any excavation, construction, or work in any public right-of-way or other
public place in performance of work or services permitted under this franchise agreement.
Inspection or acceptance by the City of any work performed by the District at the time of
completion shall not be grounds for avoidance of any of these covenants of
indemnification. Said indemnification obligations shall extend to claims which are not
reduced to a suit and any claims which may be compromised prior to the culmination of
any litigation or the institution of any litigation, provided that the District shall not be
liable to indemnify the City for any settlement of any action or claim effective without
the consent of the District,but if settled with the consent of the District,the District shall
indemnify and hold harmless the City from and against loss or liability by reason of such
settlement. The District shall be obligated to indemnify the City regardless of whether
the settlement of the action on the claim is made with the consent of the District if the
District has refused to defend the City.
In the event that the District refuses the tender of defense in any suit or claim,said
tender having been made pursuant to the indemnification clauses contained herein, and
said refusal is subsequently determined by a court having jurisdiction (or such other
tribunal that the parties shall agree to decide the matter)to have been a wrongful refusal
on the part of the District, then the District shall pay all of the City's costs for defense of
the action, including all reasonable expert witness fees and reasonable attorney's fees and
the reasonable costs of the City, including reasonable attorney's fees for recovery under
this indemnification clause.
Should a court of competent jurisdiction determine that this franchise is subject
to RCW 4.24.115,then, in the event of liability for damages arising out of bodily injury
to persons or damage to property caused by or resulting from the concurrent negligence
6
................
of the District and the City, its officers, officials, employees or agents. the District's
liability hereunder shall be only to the extent of the District's negligence. It is further
specifically and expressly understood that the indemnification provided herein constitutes
the District's waiver of immunity under Title 51 RCW, solely for the purposes of this
indemnification. This waiver has been mutually negotiated by the parties.
SECTION 9. INSURANCE. The District shall procure and maintain for
the duration of this Agreement, insurance against claims for injuries to persons or
damages to property which may arise from or in connection with the exercise of the
rights, privileges and authority granted hereunder to the District, its officers, officials,
agents, or employees. The District shall provide a copy of such insurance policy to the
City for its inspection prior to the adoption of this agreement. Such insurance shall
evidence:
A. Automobile Liability Insurance with limits no less than$1,000,000.00 Combined
Single Limit per accident for bodily injury and property damage; and
w✓ B. Commercial General Liability Insurance written on an occurrence basis with limits
no less than $1,000,000.00 Combined Single Limit per occurrence and
$1,000,000.00 aggregate for personal injury, bodily injury, and property damage.
Any deductibles or self-insured retentions must be declared to and approved by
the City. Payment of deductible or self-insured retention shall be the sole responsibility
of the District.
The insurance obtained by the District shall name the City, its officers, officials,
employees and agents as insureds with regard to activities performed by or on behalf of
the District. The coverage shall contain no special limitations on the scope of protection
afforded to the City, its officers,officials, employees or agents. In addition,the insurance
policy shall contain a clause stating that coverage shall apply separately to each insured
against whom claim is made or suit is brought, except with respect to the limits of the
insurer's liability. The District's insurance shall be primary insurance as respects the City,
its officers, officials, employees, and volunteers. Any insurance maintained by the City,
�...' 7
its officials, officers, employees, or agents shall be in excess of the District's insurance
and shall not contribute with it.
The insurance policy or policies required by this clause shall be endorsed to state
that coverage shall not be suspended, voided, canceled by either party, reduced in
coverage or in limits except after thirty (30) days' prior written notice by certified mail.
return receipt requested, has been given to the City. Any failure to comply with the
reporting provisions of the policies shall not affect coverage provided to the City, its
officers, officials, employees or volunteers.
SECTION 10. RELOCATION OF LINES AND FACILITIES. The
District agrees and covenants at its sole cost and expense,to protect, support, temporarily
disconnect, relocate, or remove from any street or public place, any of its installations
when so required by the City by reason of traffic conditions or public safety, dedications,
or new rights-of-way and the establishment and improvement thereof, freeway
construction, change or establishment of street grade, or the construction of any public
improvement or structure b an governmental agency in a governmental capacity,
p Y Y g a8 Y acting � g
provided that the District shall in all such cases have the privilege to temporarily bypass,
in the authorized portion of the same street upon approval by the City, any water line or
portion thereof required to be temporarily disconnected or removed.
The City shall consult all as-built maps and plans filed by the District pursuant to
this franchise or any permits authorized under this franchise, in order to determine
whether the District has placed pipe or facilities in any area affected by a proposed City
project. The City will make its best effort and attempt to design or redesign streets,
avenues, alleys or public places or ways, and other City utilities to minimize the impact
thereof on the District's existing water systems, including the need to require the
District's facilities to be relocated. PROVIDED HOWEVER,that the City shall make the
final determination on the need for relocation of the District's facilities.
Whenever the City determines that any of the above circumstances necessitate the
relocation of the District's than existing facilities, the City shall notify the District in
8
writing, and provide the District with copies of pertinent portions of the plans and
specifications for such project so that the District is able to relocate its facilities to
accommodate the City's project at least ten (10) days prior to the project's
commencement. The City shall provide notice to the District and require relocation of the
facilities in a period of time that is reasonable given the circumstances surrounding the
project. The City understands that pursuant to RCW 57.08.050,the District is required
to comply with certain notice and bid procedures prior to commencement of any
construction project. Whenever practical,given the circumstances surrounding the City's
project, the City shall provide the District with sufficient notice to enable the District to
comply fully with RCW 57.08.050 without resorting to emergency powers granted
therein. Upon the District's failure to complete relocation of its installations and facilities
as directed by the City, the City may remove same at the District's expense.
If, after reviewing the as-built maps and plans submitted by the District, the City
determines that the District's pipe or facilities will not be affected by a proposed City
project, no notice shall be given to the District. The City may then commence
construction and if the City finds that the District's as-built maps and plans are inaccurate
through the actual discovery of pipe and facilities in the construction area, the City shall
notify the District and allow the District twenty-four(24)hours to remove and/or relocate
its pipe and facilities. However, should the District be unable to remove and/or relocate
its pipe and facilities within this twenty-four(24)hour period after notification,the City
may remove and dispose of same at the District's cost.
SECTION 11. ABANDONMENT OF WATER PIPE AND SYSTEM
FACILITIES. No pipe, conduit, main, appurtenances, appendages or water system
facilities may be abandoned by the District without the express written consent of the
City. Abandonment procedures may be initiated by application of the District to the City,
which application shall detail, to the City's satisfaction, the location of all pipe or
facilities to be abandoned, and the procedures the District plans to implement in order to
comply with all local, state, and federal regulations pertaining to abandonment of water
"' 9
pipe and facilities constructed of asbestos cement or other materials containing asbestos.
The District shall, at its own cost, remove and properly dispose of all abandoned pipes
and water facilities when so directed by the City for the reasons and conditions set forth
in paragraph one, Section 10, Relocation of Lines and Facilities,and for street vacations.
In the case of street vacations, the City shall retain and grant an easement to the District
for any pipe and facilities then in use by the District. The City shall give notice to the
District of any proposed project or street vacation requiring removal of abandoned pipe
and facilities as set forth in Section 10. If the District does not comply within the time
period set by the City, the City may arrange for the removal and proper disposal of all
such pipes and facilities at the District's cost.
SECTION 1Z EXCAVATION. During any period of installation,
relocation, maintenance, or repair of the District's facilities and installations, all surface
structures, if any, shall be erected and used in such places and positions within said public
rights-of-way and other public properties so as to interfere as little as possible with the
free passage of traffic and the free use of adjoining property, and the District shall at all
times post and maintain proper barricades during such period of construction as required
by state law or City ordinance.
Whenever the District shall excavate in any public right-of-way or other public
property for the purpose of installation, repair,maintenance, or relocation of its facilities,
it shall apply to the City for a permit to do so and except in the case of an emergency,
shall give the City at least three (3) working days notice thereof. In the event that
emergency work is required, the District may, without prior written notice to the City,
request permits by telephone. The Director shall grant or deny such permits by telephone,
but the District shall follow-up all phone emergency permit requests with a written
application within three (3) working days of the telephone notification to the Director.
In all other cases, the City shall approve the District's applications for permits as soon
as reasonably possible. During the progress of the work, the District shall not
unnecessarily obstruct the passage or proper use of the right-or-way, and shall file maps
10
or plans with the City (as described in Section 3 herein) showing the proposed and final
location of the sewer facilities.
If either the City or the District shall at any time plan to make excavations in any
area covered by this Agreement and as described in this section,the party planning such
excavation shall afford the other,upon receipt of a written request to do so, an opportunity
to share such excavation, PROVIDED THAT: (1) such joint use shall not unreasonably
delay the work of the party causing the excavation to be made; (2) such joint use shall be
arranged and accomplished on terms and conditions satisfactory to both parties; and (3)
either party may deny such request for safety reasons.
Prior to commencement of any construction authorized by this franchise
agreement, the Director shall reference all monuments and markers of every nature
relating to subdivision plats, highways and all other surveys. The reference points shall
be so located that they will not be disturbed during the District's operations under this
franchise. The method of referencing these monuments or other points to be referenced
shall be approved by the Director before placement. The replacement of all such
monuments or markers disturbed during construction shall be made as expeditiously as
conditions permit and as directed by the Director. The costs of monuments or other
markers lost, destroyed, or disturbed and the expense of replacement by approved
monuments shall be borne by the District.
SECTION 13. COMPLIANCE WITH LAWS., The District, its
subcontractors, employees, or any person acting on behalf of the District shall keep
him/herself fully informed of all federal and state laws,and all municipal ordinances and
regulations which in any manner affect the work or performance of the work authorized
under this franchise agreement, and shall at all times observe and comply with such laws,
ordinances, and regulations, whether or not such laws, ordinances, or regulations are
mentioned herein, and shall indemnify the city, its officers, officials, agents, employees
or representatives against any claim or liability arising from or based upon the violation
of any such laws, ordinances or regulations.
� 11
SECTION 14. DISCRIMINATION. The District agrees that it shall not
discriminate against any employee or applicant on the grounds of race, creed, color,
religion, national origin, sex, marital status, age or the presence of any sensory, mental,
or physical handicap. provided that the prohibition against discrimination in employment
because of handicap shall not apply if the particular disability prevents the proper
performance of the particular worker involved. The District shall ensure that applicants
are employed,and that employees are treated during employment, without discrimination
because of their race,color, religion, sex,national origin,creed,marital status, age, or the
presence of any sensory, mental, or physical handicap. The District shall take such action
with respect to this franchise as may be required to ensure full compliance with Ch. 49.60
RC W.
SECTION 15. CITY CONSTRUCTION ADJACENT TO DISTRICT
INSTALLATION. The laying, construction, maintenance, and operation of the said
District's system of water lines, pipes, conduits, mains, etc., authorized under this
franchise agreement shall not preclude the City or its accredited agents and contractors
from blasting, grading or doing other necessary road work contiguous to the said
District's pipe lines, provided that the District shall have forty-eight(48) hours notice of
said blasting or excavation in order that the District may protect its line of pipe and
property.
SECTION 16 MODIFICATION. The City and District hereby reserve
the right to alter, amend or modify the terms and conditions of this franchise agreement
upon written agreement of both parties to such alteration, amendment, or modification.
SECTION 17. BOND. Before undertaking any of the work,
improvements, repair,relocation, or maintenance authorized by this franchise,the District
shall, upon the request of the City furnish a bond executed by the District and a corporate
surety authorized to do surety business in the State of Washington, in a sum to be set and
12
approved by the Director of Public Works as sufficient to ensure performance of the
District's obligations under this franchise. The bond shall be conditioned so that the
District shall observe all the covenants, terms, and conditions and faithfully perform all
of the obligations of this franchise, and to erect or replace any defective work or materials
discovered in the replacement of the City's streets or property within a period of two (2)
years from the date of replacement and acceptance of such repaired streets by the City.
SECTION 18. FORFEITURE AND REVOCATION. If the District
willfully violates or fails to comply with any of the provisions of this franchise, or
through willful or unreasonable negligence fails to heed or comply with any notice given
the District under the provisions of this franchise, then the District shall, at the election
of the Kent City Council, forfeit all rights conferred hereunder and this franchise may be
revoked or annulled by the Council after a hearing held upon reasonable notice to the
District. The City may elect, in lieu of the above and without any prejudice to any of its
other legal rights and remedies, to obtain an order from the superior court having
jurisdiction compelling the District to comply with the provisions of this franchise and
to recover damages and costs incurred by the City by reason of the District's failure to
comply.
SECTION 19. REMEDIES TO ENFORCE COMPLIANCE. In
addition to any other remedy provided herein, the City reserves the right to pursue any
remedy to compel or force the District and/or its successors and assigns to comply with
the terms hereof, and the pursuit of any right or remedy by the City shall not prevent the
City from thereafter declaring a forfeiture or revocation for breach of the conditions
herein. This franchise ordinance shall not in any way affect the District's obligation to
obtain all necessary permits and to comply with all City ordinances,rules, and regulations
as they apply to any work or activity subject to this franchise.
� 13
SECTION 20. CITY ORDINANCES AND REGULATIONS. Nothing
herein shall be deemed to direct the City's ability to adopt and enforce all necessary and
appropriate ordinances regulating the performance of the conditions of this franchise,
including any reasonable ordinance made in the exercise of its police powers in the
interest of the public safety and for the welfare of the public. The City shall have the
authority at all times to control by appropriate regulations the location, elevation and
manner of construction and maintenance of any water facilities by the District, and the
District shall promptly conform with all such regulations,unless compliance would cause
the District to violate other requirements of law.
SECTION 21. COST OF PUBLICATION. The cost of publication of
this franchise ordinance shall be borne by the District.
SECTION 22. ASSIGNMENT. The District may not assign the rights,
duties, and obligations under this Agreement without the prior, written consent of the
City, which consent shall not be unreasonably withheld. If such consent is given for
assignment, acceptance of the assignment shall be filed by the District's successor with
the City.
SECTION 23. SUCCESSORS AND ASSIGNS. All the provisions,
conditions, regulations, and requirements contained in this Agreement shall be binding
upon the successors and assigns of the District, and all privileges of the District shall
inure to its successors and assigns equally as if they were specifically mentioned herein.
SECTION 24. NOTICE. Any notice or information required or
permitted to be given to the parties under this Agreement may be sent to the following
addresses unless otherwise specified:
14
THE CITY OF KENT KING CO. WATER DISTRICT NO. 11
Director of Public Works General Manager
220 Fourth Avenue South 27224 - 144`h Avenue SE
Kent Washington 98032 Kent Washington 98042-9058
SECTION 25. ACCEPTANCE. After the passage and approval of this
ordinance and within sixty(60)days after such approval,this franchise shall be accepted
by the District by its filing with the City Clerk an unconditional written acceptance
thereof. Failure of the Grantee to so accept this franchise within said period of time shall
be deemed a rejection thereof by the District, and the rights and privileges herein granted
shall, after the expiration of the sixty (60) day period, absolutely cease and determine,
unless the time period is extended by ordinance duly passed for that purpose.
SECTION 26. SURVIVAL. All of the provisions, conditions, and
requirements of Section 6, Protection of Public; 8, Indemnification; 10, Relocation of
Lines and Facilities; and 11, Abandonment of Lines and Facilities, of this franchise
shall be in addition to any and all other obligations and liabilities the District may have
to the City at common law, by statute, or by contract, and shall survive the City's
franchise to the District for the use of the areas mentioned in Section 1 herein, and any
renewals or extensions thereof. All of the provisions, conditions, regulations, and
requirements contained in this franchise ordinance shall further be binding upon the
successors and assigns of the District, and all privileges, as well as all obligations and
liabilities of the District shall inure to its successors and assigns equally as if they were
specifically mentioned wherever the District is named herein.
SECTION 27. SEVERABILITY. If any section, sentence, clause, or
phrase of this franchise ordinance should be held to be invalid or unconstitutional by a
court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the
validity or constitutionality of any other section, sentence, clause or phrase of this
franchise. In the even that any of the provisions of this franchise are held to be invalid
-� 15
by a court of competent jurisdiction, the City reserves the right to reconsider the grant of
this franchise and may amend,repeal,add,replace or modify any other provision, or may
terminate this franchise.
SECTION 2& EFFECTIVE DATE. This franchise ordinance shall be:
(1) submitted to the Kent City Attorney; (2) introduced at least once at a regular meeting
of the Kent City Council; (3) published at least once in a newspaper of general circulation
in the City of Kent; and if granted by the approving vote of at least a majority of the City
Council, shall be effective in thirty (30) days after execution.
JIM WHITE, MAYOR
ATTEST:
BRENDA JACOBER, CITY CLERK
APPROVED AS TO FORM:
ROGER A. LUBOVICH, CITY ATTORNEY
PASSED: day of ) 1999.
APPROVED: day of , 1999.
PUBLISHED: day of , 1999.
I hereby certify that this is a true copy of Ordinance No. , passed
by the City Council of the City of Kent, Washington, and approved by the Mayor of the
City of Kent as hereon indicated.
(SEAL)
BRENDA JACOBER, CITY CLERK
P.\Civil\Ordinance\distnct no.I I Lord.doc
16
E 0MI T "A"
WATER DISTRICT #111 OF KING COUNTY
CTTY OF KENT FRANCHISE LEGAL DESCRIPTION
November 18, 1998
BEGINNING at the intersection of a line lying 495 feet West of the East line of the
Northwest quasar of Section 21, Township 22 North, Range 5 East, W,M. in King
County, Washington with the South margin of SE 240th Street;
Thence Easterly along said South margin to the West line of the East half of the
Northeast quarter of said Section 21;
Thence Northerly perpendicular to said South margin to the centerline of SE 240r
Street;
Thence Easterly along said centerline to its intersection with the Northerly margin of
said SE 2406 Street in the Northeast quarter of Section 22, Township 22 North, Range
5 East, W.M., in King County, Washington;
Thence Southeasterly, Southerly, Southwesterly and Southerly along said Northerly
margin of SE 240' Street, the Easterly margin of 148* Place SE and the East margin of
148* Avenue SE to the East margin of Soos Creek Drive SE in the Northwest quarter
of Section 26, Township 22 North, Range 5 East, W.M., in King County,
Washington;
Thence continuing Southerly and Southeasterly along said East margin to the North
line of Lot 3 of King County Short Plat No. 880080, recorded under Recording No.
8110140550, records of King County, Washington;
Thence Easterly along said North line to the East line of said Lot 3;
Thence Southerly along said East line to the North margin of SE 264th Street;
Thence Easterly along said North margin to the West line of the East half of the
Southeast quarter of the Northwest quarter of Section 26, Township 22 North, Range 5
East, W.M.;
Thence Southerly along said West line and the West line of the East half of the
Northeast quarter of the Southwest quarter of said Section 26 to the South line of said
Northeast quarter;
Thence Easterly along said South line to the East line of said Southwest quarter of
Section 26;
Thence Southerly along said East line to its intersection with the centerline of the
Bonneville Transmission Line Easement (Covington - Renton 1);
`-' Page 1 of 3
r:Wro76uwuo.rr�lee He mobs It.IM
EXHIBIT "A", continued
Thence Southeasterly along said centerline to the North margin of SE 272nd Street;
Thence Easterly along said North margin to the centerline of Soos Creek;
Thence Southerly along said centerline to the South line of the North half of the
Northwest quarter of the Northeast quarter of Section 35, Township 22 North, Range 5
East, W.M.;
Thence Westerly along said South line to the East line of Lot 1 of King County Short
Plat No. 883126, recorded under Recording No. 8405231102, records of King County,
Washington;
Thence Southerly along said East line to the North line of the South half of the South
half of said Northwest quarter of the Northeast quarter;
Thence Easterly along said North line to the centerline of Soos Creek;
Thence Southerly along said centerline to the Northwest margin of Primary State
Highway No. 2 (S.R. 18);
Thence Southwesterly along said Northwest margin to the North margin of SE 288th
Street in the Southeast quarter of the Southeast quarter of Section 34, Township 22
North, Range 5 East, W.M.;
Thence Westerly along said North margin to the West margin of 132nd Avenue SE;
Thence Northerly along said West margin to the South line of the North half of the
North half of the Southeast quarter of Section 33, Township 22 North, Range 5 East,
W.M;
Thence Westerly along said South line to the Southeasterly margin of SE 282nd Way;
Thence Southwesterly and Westerly along said Southeasterly margin and the South
margin of SE 282nd Street to the West margin of 124th Avenue SE;
Thence Northerly along said West margin to the South line of the Northeast quarter of
the Northwest quarter of Section 33, Township 22 North, Range 5 East, W.M.;
Thence Easterly along said South line and the South line of the Northwest quarter of
the Northeast quarter of said Section 33 to a point 440 feet West of the Southeast
corner thereof,
Thence Northerly and parallel with the East line of said Northwest quarter of the
Northeast quarter to the South line of the North half of the North half of said
Northwest quarter of the Northeast quarter;
Page 2 of 3
l:tUYrM"=U dM&dW Ne Nebo is.IM
EXHIBIT "A", continued
Thence Easterly along said South line of the North half of the North half of the
Northwest quarter of the Northeast quarter to the Southeast comer thereof;
Thence Northerly along the East line of said Northwest quarter of the Northeast
quarter to the Northeast corner thereof,
Thence Westerly along the North line of said Section 33 to the East line of the Big "K"
Addition No. 2, according to the Plat thereof recorded in Volume 78 of Plats, Page 16,
records of King County, Washington;
Thence Northerly along said East line to the Northeasterly line thereof,
Thence Northwesterly along said Northeasterly line to the Northeast corner of the Big
"K" Addition, according to the Plat thereof recorded in Volume 67 of Plats, Page 66,
records of King County, Washington;
Thence continuing Northwesterly along the Northeasterly line of said Big "K" Addition
and its Northwesterly extension to its intersection with the West margin of 124th
Avenue Southeast;
Thence Northerly along said West margin to its intersection with the South line of the
North 507 feet of the Northeast quarter of the Southwest quarter of Section 28,
Township 22 North, Range 5 East, W.M.;
-% Thence Westerly along said South line to the West line of the East 149.8 feet of said
Northeast-quarter of the Southwest quarter;
Thence Northerly along said West line to the North line of said Southwest quarter of
Section 28;
Thence Westerly along said North line to its intersection with a Iine that is 495 feet
West of and parallel with the East line of the Northwest quarter of said Section 28;
Thence Northerly along said line that is 495 feet West of and parallel with said East
line of the Northwest quarter and the Southwest and Northwest quarters of Section 21,
Township 22 North, Range 5 East, W.M. to its intersection with the South margin of
Southeast 240th Street and the POINT OF BEGINNING of this description.
` -� Page 3 of 3
Kent City Council Meeting
Date March 16 . 1999
Category Other Business
1 . SUBJECT: 1999 COUNCILMANIC BONDS, BOND ORDINANCE AND
PURCHASE CONTRACT
2 . SUMMARY STATEMENT: On March 2, 1999, the Operations
Committee recommended adoption of the formal Bond Ordinance and-
authorization for the Mayor to sign the Bond Purchase Contract
for the 1999 LTGO. May Miller, Finance Director, will make a
brief presentation.
3 . EXHIBITS: Various memos and financial worksheets
4 . RECOMMENDED BY: Operations Committee (3-0) 1/19/99 and 3/2/99
and Regular Council (7-0) 2/2/99
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO YES X
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION: alvvwa—seconds
Councilmember W "� 4 moves, Councilmember
to adopt Bond Ordinance No. 3LAW for the issuance of
$20, 858, 000 plus issuance costs in 1999 Councilmanic Bonds and
to authorize signing of the bond purchase contract with Lehman
Brothers .
j�
DISCUSSION: ll-
ACTION:
Council Agenda
Item No. 7A
March 12, 1999
To: Mayor White and City Councilmembers
From: May Miller, Director of Finance
Subject: Bond Ordinance& Purchase Contract
Authorization is requested to approve the formal bond ordinance for our 1999 Councilmanic Bonds
totaling $20,858,000 plus issuance costs. Authorization is also requested for the Mayor to sign the
bond purchase agreement with Lehman Brothers.
This Bond Issue will finance a variety of capital projects identified in the city's Capital Facility
Plan, including technology and communication upgrades, acquiring land and buildings for
municipal purposes,providing major municipal facility upgrades and street improvements, and to
pay the costs of issuing the bonds.
The Operations Committee, at their March 2, 1999 meeting, approved this ordinance and purchase
contract. The bonds will be priced Monday, March 15, 1999, and the interest rate set and included
in the final ordinance and contract which we will bring to the March 16, 1999 Council meeting.
Final proceeds are expected to be received by March 31, 1999.
Dick King of Lehman Brothers and I will review the interest rates and results of the recent credit
upgrade requests from Standard & Poors and Moodys.
02/25/99 14:39 FAX 206 447 9700 F P_& S zoo,")
DRAFT DATED FEBRUARY 24, 1999
ORDINANCE NO.
AN ORDINANCE of the City of Kent, Washington,
relating to contracting indebtedness, providing for the issuance
of$21,245,000 par value of Limited Tax General Obligation
Bonds, 1999, of the City for general City purposes to provide
funds with which to finance a variety of capital projects,
including technology and communication upgrades, acquiring
land and buildings for mmic'ipal purposes and providing major
opal facility upgrades and street improvements, and to pay
the costs of issuing of the bonds; fixing the date, form,
maturities, interest rates, teems and covens" of the bonds;
establi Wng a bond redemption flmd and a project fund;
providing for bond insurance; and approving the sale and
providing for the delivery of the bonds to Lehman Brothers Inc. --�
of Seattle, Washington
WHEREAS, the City of Kent, Washington (the "City"), is in need of
financing a variety of capital projects, including technology and communication upgrades,
acquiring land and buildings for municipal purposes and providing major municipal facility
upgrades and street improvements, the estimated cost of which is $20,858,000, and the City
does not have available sufficient funds to pay the cost; and
WHEREAS, of ,New York(the
"Bond Insurer"), has made a commitment to issue an insurance policy(the"Municipal Bond
insurance Policy") insuring the payment when due of the principal of and interest on the
bonds authorized herein,to be issued as provided therein, and the City Council deems that
the purcbase of the Municipal Bond Insurance Policy is in the best interest of the City, and
��� 1 LTGO Bonds, 1999
02%25%99 14: 39 FAX 206 447 9700 F P & S 12003
WEIEREAS, Lehman Brothers Inc. of Seattle, Washington, has
offered to purchase the bonds authorized herein under the terms and conditions hereinafter
set forth in the form of a bond purchase contract, NOW, THEREFORE,
THE CITY COL NCIL OF THE CITY OF KEPT,WASHNGTON,DOES
g,BY ORDAIN AS FOLLOWS:
SECT101V 1. Debt The assessed valuation of the twcable property
within the City as ascertained by the last preceding assessment for City purposes for the
calendar year 1999 is S5,867,681,774, and the City has outstanding general indebtedness
evidenced by limited tax general obligation bonds, loans,leases and conditional sales contracts
in the principal amount of S64,027,832 incurred within the limit of up to 1-1/2% of the value
of the taxable property within the City permitted for general municipal purposes without a
vote of the qualified voters therein, unlimited tax general obligation bonds in the principal
amount of S12,595,000 incurred within the limit of up to 2-1/2% of the value of the taxable
property within the City for capital purposes only issued pursuant to a vote of the qualified
voters of the City, and the amount of indebtedness for which bonds are authorized herein to
be issued is $21,245,000.
.VECrM 2. Authorizadon ofBwidr. The City shall borrow money on the
credit of the City and issue negotiable limited tax general obligation bonds evidencing that
indebtedness in the amount of$21,245,000 for general City purposes to provide the funds to
finance a variety of capital projects, including technology and communication upgrades,
acquiring land and buildings for municipal purposes and providing major municipal facility
upgrades and street improvements (collectively, the "Projects"), as more fully identified in
Exhibit A, attached hereto and by this reference made a part hereof and to pay the costs of
issuance and sale of the bonds (the "costs of issuance"). The general indebtedness to be
incurred shall be within the limit of up to 1-1/21a of the value of the taxable property within
the City permitted for general municipal purposes without a vote of the qualified voters
therein.
5007081CO2 2 LTGU Bonds, 1999
02/25/99 14:09 FAX 206 447 9700 F F x S Z 004
SE T1O 3 p s i zton . The bonds shall be called Limited Tax
General Obligation Bonds, 1999, of the City(the"Bonds"); shall be in the as3grMaate principal
amount of $21,245,000; shall be dated March 15, 1999; shall be in the denomination of
$5,000 or any integral multiple thereof within a single maturity; shall be numbered separately
in the manner and with any additional designation as the Bond Registrar (collectively, the
fiscal agencies of the State of Washington) deems necessary for purposes of identification;
shall bear interest(computed on the basis of a 360-day year of twelve 30-day months)payable
Sermannually on each June 1 and December 1, commencing December 1, 1999, to the
maturity or earlier redemption of the Bonds; and shall mature on December 1 in years and
amounts and bear interest at the rates per annum as follows:
Maturity Interest
Years Amount es
2000 $1,220,000
2001 1,260,000
2002 1,305,000
2003 1,360,000
2004 1,405,000
2005 1,470,000
2006 1,525,000
2007 1,150,000
2008 1,195,000
2009 1,245,000
2010 655,000
2011 690,000
2012 7150000
2013 745,000
2019 5,315,000
The term of the Bonds allocated to the various Projects does not exceed the expected lives
of the Projects to be financed with the proceeds of those Bonds.
C77CIN 4. Re-g-isration j=J L MAZE of Bps. The Bonds shall be issued
only in registered form as to both principal and interest and shall be recorded on books or
3 LTGO Bonds, 1999
5MM14•02
02%25%99 14:40 FAX 206 447 9700 F P & S C�j 00S
The Bond Register shall
records maintained by the Bond Registrar(the Bond Register"). �
contain the name and mailing address of the owner of each Bond and the principal amount
and number of each of the Bonds held by each owner.
Bonds surrendered to the Bond Regi stray may be exchanged for Bonds in any
authorized denomination of an equal aggregate principal amount and of the same interest rate
and maturity. Bonds may be transferred only if endorsed in the manner Provided thereon and
surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the
owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer any
Bond during the 15 days preceding any principal payment or redemption date.
The Bonds initially shall be registered in the name of CEDE & CO., as the
nominee of The Depository Trust Company,New York,New York("DTC"). The Bonds so
registered shall be held in fully immobilized form by DTC as depository in accordance with
the provisions of a Blanket Issuer Letter of Representations with DTC substantially in the
form on file with the City Clerk and by this reference made a part hereof(the "Letter of
Representations"). To induce DTC to accept the Bonds as eligible for deposit at DTC, the
City approves the Letter of Representations. The City Finance Division Director is
authorized and directed to execute and deliver the Letter of Representations, on behalf of the
City, to DTC on or before the date of delivery of the Bonds to the purchaser thereof and the
payment therefor,with such changes as the City Finance Division Director deems to be in the
best interests of the City, and her execution and delivery of the Letter of Representations shall
evidence irrevocably the approval of the Letter of Representations by the City. Neither the
City nor the Bond Registrar shall have any responsibility or obligation to DTC participants
or the persons for whom they act as nominees with respect to the Bonds regarding accuracy
of any records maintaned by DTC or DTC participants of any amount in respect of principal
of or interest on the Bonds, or any notice which is permitted or required to be given to
registered owners hereunder (except such notice as is required to be given by the Bond
Registrar to DTC).
4�r
1^,� 4 LTGO Bonds. 1999
02/25/99 14:40 FAX 206 447 9700 _ F F & S Q 006
For so long as any Bonds are held in fully immobilized form, DTC or its
successor depository shall be deemed to be the registered owner for all purposes hereunder
and all references to registered owners, bondowners, bondholders or the like shall mean DTC
or its nominees and shall not mean the owners of any beneficial interests in the Bonds.
Registered ownership of such Bonds, or any portions thereof, may not thereafter be
transferred except: (i) to any successor of DTC or its nominee, if that successor shall be
qualified under any applicable laws to provide the services proposed to be provided by it; (ii)
to any substitute depository appointed by the City or such substitute depository's successor;
or(iii)to any person if the Bonds are no longer held in immobilized form
Upon the resignation of DTC or its successor(or any substitute depository or
its successor)from its functions as depository, or a determination by the City that it no longer
wishes to continue the system of book entry transfers through DTC or its successor(or any
substitute depository or its successor), the City may appoint a substitute depository. Any
such substitute depository shall be qualified under any applicable laws to provide the services
proposed to be provided by it.
If(i) DTC or its successor(or substitute depository or its successor)resigns
from its functions as depository, and no substitute depository can be obtained, or(ii)the City
determines that the Bonds are to be in certificated form, the ownership of Bonds may be
transferred to any person as provided herein and the Bonds no longer shall be held in fully
immobilized form.
SE Payment of Bow. Both principal of and interest on the Bonds
shall be payable in lawful money of the United States of America. Interest an the Bonds shall
be paid by checks or drafts of the Bond Registrar maned on the interest payment date to the
registered owners at the addresses appearing on the Bond Register on the 15th day of the
month preceding the interest payment date. Principal of the Bonds shall be payable upon
presentation and surrender of the Bonds by the registered owners at either of the principal ..�
offices of the Bond Registrar at the option of the owners. Notwithstanding the foregoing, as
500701402 5 LTGO Bonds, 1999
0:'23/99 14:40 ELL 206 447 9700 F, P & S 2007
long as the Bonds are registered in the name of DTC or its nominee, payment of principal of
and interest on the Bonds shall be made in the manner set forth in the Letter of
Representations.
SEC—TM VN 6. Redemption Provisusma and Onerr Market Purchase ofBarrds.
Bonds maturing in the years 2000 through , inclusive, shall be issued without the right
or option of the City to redeem those Bonds prior to their stated maturity dates. The City
reserves the right and option to redeem Bonds maturing on or after December 1, ,prior
to their stated maturity dates at any time on or after December 1, _, as a whole or in part
(within one or more maturities selected by the City and randomly within a maturity in such
manner as the Bond Registrar shall determine), at the following prices (expressed as
percentage of par)plus accrued interest to the date fixed for redemption.
Redemotian Dates Redemvtion Prices
*� December 1, ,through November 30, 101%
December 1, , and thereafter 100
Bonds maturing in 2019 are Term Bonds and, if not redeemed under the
optional redemption provisions set forth above or purchased in the open market under the
provisions set forth below, shall be called for redemption by lot(in such manner as the Bond
Registrar shall determine) at par plus accrued interest on December 1 in years and amounts
as follows:
Mandatory Mandatory
Redemption Redemption
Years Amourrts
2014 $ 780,000
2015 920,000
2016 360,000
2017 905,4000
2018 950,000
.►' 2019 1,000,000
—amlanz 6 LTGO Bonds, 1999
02%25/99 14:41 FAX 206 447 9700 F F & S Z008
If the City shall redeem Term Bonds under the optional redemption provisions
set forth above or purchase Term Bonds in the open market as set forth below, the par
amount of the Term Bonds so redeemed or purchased(irrespective of their actual redemption
or purchase prices) shall be credited against one or more scheduled mandatory redemption
amounts for those Term Bonds(as allocated by the City)begbining not earlier than 60 days
after the date of the optional redemption or purchase, and the City shall promptly notify the
Bond Registrar in writing of the manner in which the credit for the Term Bonds so redeemed
or purchased has been allocated.
Portions of the principal amount of any Bond, in installments of$5,000 or any
integral multiple thereof; may be redeemed. If less than all of the principal amount of any
Bond is redeemed,upon surrender of that Bond at either of the principal offices of the Bond
Registrar,there shall be issued to the registered owner,without charge therefor, a new Bond
(or Bonds, at the option of the registered owner) of the same maturity and interest rate in aay
of the denominations authorized by this ordinance in the aggregate principal amount
remaining unredeemed.
The City further reserves the right and option to purchase any or all of the
Bonds in the open market at any time at any price plus accrued interest to the date of
purchase.
All Bonds purchased or redeemed under this section shall be canceled.
Notwithstanding the foregoing,for so long as the Bonds are registered in the
name of Cede& Co., as nominee of DTC, selection of Bonds for redemption shall be in
accordance with the Letter of Representations(as it may be changed).
S,EC770N 7. Notice of R The City shall cause notice of any
intended redemption of Bonds to be given by the Bond Registrar not less than 30 nor more
than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the
7 LTGO Bonds, 1999
02/25/99 14: 41 FAX 206 447 9700 F P & S 009
registered owner of any Bond to be redeemed at the address appearing on the Bond Register
at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall
be deemed to have been fulfilled when notice has been mailed as so provided, whether or not
it is actually received by the owner of any Bond. Interest on Bonds called for redemption
shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not
redeemed when presented pursuant to the call. In addition, the redemption notice shall be
mailed by the Bond Registrar within the same period, postage prepaid, to vtoody's Investors
Service, Inc., and Standard 8t Pooes at their offices in New York, New York, or their
successors, to Lehman Brothers Inc. at its principal office in Seattle, Washington, or its
successor, to __ (the `Bond Insurer") at its principal
office in or its successor, and to such other
persons and with such additional information as the City Finance Division Director shall
determine, but these additional mailings shall not be a condition precedent to the redemption
of Bonds. Notwithstanding the foregoing, for so long as the Bonds are registered in the name
w-� of Cede St Co., as nominee of DTC, notice of redemption shall be given in accordance with
the Letter of Representations (as it may be changed).
SECTION 8. Failure To Redeam I3o If any Bond is not redeemed when
properly presented at its maturity or call date, the City shall be obligated to pay interest on
that Bond at the same rate provided in the Bond from and after its maturity or call date until
that Bond,both principal and interest, is paid in full or until sufficient money for its payment
in full is on deposit in the bond redemption fund hereinafter created and the Bond has been
called for payment by giving notice of that call to the registered owner of each of those
unpaid Bonds.
SEG'TTON 9. Pledge of Torres. For as long as any of the Bonds are
outstanding, the City in+evocably pledges to include in its budget and levy taxes annually
within the constitutional and statutory tax limitations provided by law without a vote of the
electors of the City on all of the taxable property within the City in an amount sufficient,
` together with other money legally available and to be used therefor, to pay when due the
principal of and interest,on the Bonds, and the full faith, credit and resources of the City are
5CP=1402 9 LTGO Bonds, 1999
02.25/99 14:41 FAX 206 447 9700 F F & S Z010
pledged irrevocably for the annual levy and collection of those taxes and the prompt payment `
of that principal and interest.
S,moiy 1Q. Form and F.= go of BoA*. The Bonds shall be printed
or lithographed on good bond paper in a form consistent with the provisions of this ordinance
and state law and shall be signed by the Mayor and City Clerk, either or both of whose
signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction
thereof shall be impressed or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following form,
manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled
to the benefits of this ordinance:
CERTIFICATE OF ALTMENTICATION
This Bond is one of the fully registered City of Kent, Washington,
Limited Tax General Obligation Bonds, 1999, described in the Bond
Ordinance_
WASHINGTON STATE FISCAL AG�ICY
Bond Registrar
By
Authorized Signer
The authorized signing of a Certificate of Authentication shall be conchnive evidence that the
Bonds so authenticated have been duly executed, authenticated and delivered and are entitled
to the benefits of this ordinance.
If Rory officer whose facsimile 4mature appears on the Bonds ceases to be an
officer of the City authorized to sign bonds before the Bonds beating his or her facsimile
signature are authenticated or delivered by the Bond Registrar or issued by the City, those
Bonds nevertheless may be authenticated, issued and delivered and, when authenticated,
issued and delivered, shall be as binding on the City as though that person had continued to
5007081402 9 LTGO Bonds, 1999
02/25/99 14: 42 FAX 206 447 9700 F P & S Q1011
be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf
of the City by any person who, on the actual date of signing of the Bond, is an officer of the
City authorized to sip bonds, although he or she did not hold the required office on the date
of issuance of the Bonds.
SEC770NII. Bond R The Bond Registrar shall keep, or cause to
be kept, at its principal corporate trust office, sufficient books for the registration and transfer
of the Bonds,which shall be open to inspection by the City at all times. The Bond Registrar
is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of the Bonds and this ordinance, to serge as the
City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and
duties under this ordinance and City Ordinance No. 2418 establishing a system of registration
for the City's bonds and obligations.
The Bond Registrar shall be responsible for its representations contained in the
Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may
become the owner of Bonds with the same rights it would have if it were not the Bond
Registrar and,to the extern permitted by law, may act as depository for and permit any of its
officers or directors to act as members o1 or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
SECTION 12. Premn adon of Tax l oWdon for Interest on Bonds. The
City covenants that it will take all actions necessary to prevent interest on the Bonds from
being included in gross income for federal income tax purposes, and it will neither take any
action nor make or permit any use of proceeds of the Bonds or other funds of the City treated
as proceeds of the Bonds at any time during the term of the Bonds which will cause interest
on the Bonds to be included in gross income for federal income tax purposes. The City also
covenants that it will, to the extent the arbitrage rebate requirement of Section 148 of the
Internal Revenue Code of 1986, as amended (the "Code"), is applicable to the Bonds, take
all actions necessary to comply (or to be treated as having complied)with that requirement
3MM114.02 10 LTGO Bonds, 1999
02/25/99 14:42 FAX 206 447 9700 F P & S
in connection with the Bonds, including the calculation and payment of any penalties that the
City has elected to pay as an alternative to calculating rebatable arbitrage, and the payment
of any other penalties if required under Section 148 of the Code to prevent interest on the
Bonds from being included in gross income for federal income tax purposes. The City
certifies that it has not been notified of any listing or proposed listing by the Internal Revenue
Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied
upon.
SECTION 13. Refu mding or Dekasm of the Borids. The City may issue
refunding bonds pursuant to the laws of the State ofWashington or use money available from
any other lawful source to pay when due the principal of and interest on the Bonds, or any
portion thereof included in a refunding or defeasance plan, and to redeem and retire, refund
or defease all such then-outstanding Bonds (hereia� collectively called the "defeased
Bonds") and to pay the costs of the refunding or defeasance. If money and/or direct
obligations of the United States of America maturing at a time or times and bearing interest .yr
in amounts (together with money, if necessary) sufficient to redeem and retire, refund or
defease the defeased Bonds in accordance with their terms are set aside in a special trust fund
or escrow account irrevocably pledged to that redemption, retirement or defeasance of
defeased Bonds (hereinafter called the "trust account"), then all right and interest of the
owners of the defeased Bonds in the covenants of this ordinance and in the funds and
accounts pledged to the payment of the defeased Bonds shall cease and become void. The
owners of defeased Bonds shall have the right to receive payment of the principal of and
interest on the defeased Bonds from the trust account. The City shall include in the refunding
or defeasance plan such provisions as the City deems necessary for the random selection of
any defeased Bonds that constitute less than all of a particular maturity of the Bonds, for
notice of the defeasance to be given to the owners of the defeased Bonds and to such other
persons as the City shall determine, and for any required replacement of Bond certificates for
defeased Bonds. The defeased Bonds shall be deemed no longer outstanding, and the City
may apply any money in any other fund or account established for the payment or redemption
of the defeased Bonds to any lawful purposes as it shall determine.
sUMIMM 11 LTGO Bonds, 1999
021125/99 14:42 FAX 206 447 9700 F P & S
Notwithstanding anything in this section to the contrary, if the principal of
and/or interest due on the Bonds is paid by the Bond Insurer pursuant to the Municipal Bond
Insurance Policy, the Bonds shall be treated as remaining outstanding for all purposes and
shall not be considered paid by the City, and the covenants, agreements and other obligations
of the City to the registered owners of the Bonds shall continue to exist, and the Bond Insurer
shall be subrogated to the rights of the registered owners.
SECTION 14. Frond 1:und and Den d of Hand Proceeds. There is created
and established in.the office of the City Finance Division Director a special fund designated
as the Limited Tax General Obligation Bond Fund, 1999 (the "Bond Fund"),for the purpose
of paying principal of and interest on the Bonds. Accrued interest on the Bonds, if any,
received from the sale and delivery of the Bonds shall be paid into the Bond Fund. All taxes
collected for and allocated to the payment of the principal of and interest on the Bonds,
together with other money, if any, legally available to be used for that purpose, shall be
deposited in the Bond Fund.
There also is created and established in the office of the City Finance Division
Director a special fund designated as the 1999 LTGO Project Fund(the"Project Fund"). The
principal proceeds received from the sale and delivery of the Bonds shall be paid into the
Project Fund and used for the purposes specified in Section 2 of this ordinance. Until needed
to pay the costs of the Project and costs of issuance of the Bonds, the City may invest
principal proceeds temporarily in any legal investment, and the investment earnings may be
retained in the Project Fund and be spent for the purposes of that fund except that earnings
subject to a federal tax or rebate requirement may be withdrawn from the Project Fund and
used for those tax or rebate purposes.
+QN 11. pgr�oval of Don d ProrChow CgTfdQCt. Lehman Brothers Inc.
of Seattle, Washington, has presented a purchase contract(the "Bond Purchase Contract")
to the City offering to purchase the Bonds under the terms and conditions provided in the
Bond.Purchase Contract,which written Bond Purchase Contract is on file with the City Clerk
5WMJA.0: 12 LTGO Bonds, 1999
02/25/99 14:42 FAX 206 447 9700 F P & S Z 014
and is incorporated herein by this reference. The City Council finds that entering into the
Bond Purchase Contract is in the City's best interest and therefore accepts the offer contained
therein and authorizes its execution by City officials.
The Bonds will be printed at City expense and will be delivered to the
purchaser in accordance with the Bond Purchase Contract, with the approving legal opinion
of Foster Pepper& Shefelman PLLC, municipal bond counsel of Seattle, Washington,
regarding the Bonds. Bond counsel shall not be required to review and shall express no
opinion concerning the completeness or accuracy of any official statement, offering circular
or other sales or disclosure material issued or used in connection with the Bonds, and bond
counsel's opinion shall so state.
The proper City officials are authorized and directed to do everything
necessary for the prompt delivery of the Bonds to the purchaser and for the proper application
and use of the proceeds of the sale thereof.
SE�6. Preliminary Official--Statement Deemed-Final. The City
Council has been provided varith copies of a preliminary official statement dated Mi mch
1999 (the "Preliminary Official Statement"), prepared in connection with the sale of the
Bonds. For the sole purpose of the Bond purchaser's compliance with Securities and
Exchange Commission("SEC")Rule 15c2-12(b)(1), the City"deems final"that Preliminary
Official Statement as of its date, except for the omission of information as to offering prices,
interest rates, selling compensation, aggregate principal amount, principal amount per
maturity, maturity dates, options of redemption, delivery dates, ratings and other terms of the
Bonds dependent on such matters. '
SECT_N 17 Undert4=to Provide CoMaWr Disclosure. To meet the
requirements of United States Securities and Exchange Commission ("SEC') Rule I5c2-
12(b)(5) (the"Rule"), as applicable to a participating underwriter for the Bonds, the City
makes the following written undertaking(the"Undertaking")for the benefit of holden of the
Bonds:
soo.&i-4os 13 LTGO Bonds, 1999
02/25/99 14:44 F.0 206 447 9700 F P & S ZI 013
(a) Undertaldne to Provide Annual Financial Information and
Notice of Material Events. The City undertakes to provide or cause to be
provided, either directly or through a designated agent:
(i) To each nationally recognized municipal securities
information repository designated by the.SEC in accordance with the
Rule ("NRMSUV) and to a state information depository, if any,
established in the State of Washington (the "SID") annual financial
information and operating data of the type included in the final official
statement for the Bonds and described in subsection(b) of this section
("annual financial information");
(ii) To each NRMSIR 'or the Municipal Securities
Rulernaking Board ("MSRB"), and to the SID, timely notice of the
occurrence of any of the following events with respect to the Bonds,
if material: (1)principal and interest payment delinquencies; (2)non-
payment related defaults; (3) unscheduled draws on debt service
reserves reflecting financial difficulties; (4) unscheduled draws on
credit enbancements reflecting funs difficulties; (5) substitution of
credit or liquidity providers, or their$i hue to perform; (6)adverse tax
opinions or events affecting the tax-exempt status of the Bonds; (7)
modifications to rights of holders of the Bonds; (9)Bond calls(other
than scheduled mandatory redemptions of Term Bonds); (9)
defeasancoa; (10) release, substitution, or sale of property securing
repayment of the Bonds; and(11) rating changes; and
(iii) To each NRMSIR or to the MSRB, and to the SID,
timely notice of a failure by the City to provide required annual
financial information on or before the date specified in subsection(b)
of this section.
(b) Type of Annual Financial Information Undertaken to be
Provide . The annual financial information that the City undertakes to
provide in subsection(a) of this section.
(i) Shall consist of (1) anmial financial statements
prepared(except as noted in the financial statements) in accordance
with applicable generally accepted accounting principles promulgated
by the Government Accounting Standards Board ("GA.SB"), as such
principles may be changed from time to time, which statements shall
not be audited, except, however, that if and when audited financial
statements are otherwise prepared and available to the City they will
�.� be provided; (2) a statement of the City's general obligation debt
s =14.ox 14 LTG4 Bonds, 1999
02/25i99 14:44 FAX 206 44T 9700 F P & S 101.6
service requirements; and (3) an update of the information set forth in
tables 1, 4, 5, 6 and 7 of the Official Statement for the Bonds;
(ii) Shall be provided to each NRMSIR and the SID, not
later than the last day of the ninth month after the end of each fiscal
year of the City (a=ntly,a fiscal year ending December 31), as such
fiscal year may be changed as required or permitted by State law,
commencing with the City's fiscal year ending December 31, 1998;
and
(iii) May be provided in a aingie or rmrltiple documents, and
may be incorporated by reference to other documents that have been
filed with each NRMSIR and the SID, or, if the document
incorporated by reference is a"final off a ial statement'with respect to
other obligations of the City, that has been filed with the MSRB.
(e) Amendment of UndettWng. The Undartaking is subject to
amendment after the primary offering of the Bonds without the consent of any
holder of any Bond, or of any broker, dealer, municipal securities dealer,
participating underwriter, rating agency, NRM M the SID or the MSRB,
under the circumstances and in the manner permitted by the Rule.
The City will give notice to each NRMMR or the MSRB, and the S11),
of the substance(or provide a copy) of any samadment to the Undertaking
and a brief statement of the reasons four the amendment- If the amendment
changes the type of annual financial information to be provided, the aamual
financial information contairing the amended$nancial information will include
a narrative wMIsnation of the effect of that change on the type of information
to be provided.
(d) Beneficiaries. The Undartaking evidenced by this section shall
inure to the benefit of the City and any holder of Bonds, and shall not inure
to the benefit of or create any rights in any other person.
(e) Termination of LkaMUking. The City's obligations under this
Undertaking shall terminate upon the legal defeasance of all of the Bonds. In
addition,the City's obligations under this Undertaking shall terminate if those
provisions of the Rule which require the City to comply with this Undertaking
become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of nationally recognized bond counsel or other
counsel familiar with federal securities laws delivered to the City, and the City
provides timely notice of such termination to each NRMSIR or the MSRB
and the SID.
soorvsl:m 15 LTGO Bands, 1999
02/Z5;99 14:45 FaU 208 447 9700 F P & S 017
(f) &gmldv far Failure to Cwnply with UndertakQnn. As soon as
practicable after the City learns of any failure to comply with the Undertakiaa,
the City will proceed with due diligence to cause such noncompliance to be
corrected No failure by the City or other obligated person to comply with the
Undertaking shell constitute a default in respect of the Bonds. The sole
remedy of any holder of a Bond shall be to take such actions as that holder
deems necessary, including seeking an order of specific performance from an
appropriate court, to compel the City or other obligated person to comply
with the Undertaking.
(g) Pgjgnjj=of Qfficial 1e to Administer Undertaldn;:.
The Finance Division Director of the City (or such other officer of the City
who may in the future perform the duties of the Finance Division Director) or
his or her designee is authorized and directed in his or her discretion to take
such further actions as may be necessary, appropriate or convenient to carry
out the Undertaking of the City in respect of the Bonds set forth in this
section and in accordance with the Rule, including, without limitation, the
following actions-
(i) preparing and filing the annual financial information
undertaken to be provided;
CH) determining whether any event specified in subsection
(a)has occurred, assessing its materiality with respect to the Bonds,
and, if material, preparing and disseminating.notice of its occurrence;
(m) determining whether any person other than the City is
an"obligated person"within the meaning of the Rule with respect to
the Bonds, and obtaining from such person an undertaking to provide
any annual financial information and notice of material events for that
person in accordance with the Rule;
(iv) selecting, engaging and compensating designated
agents and consultants,including but not limited to financial advisors
and legal counsel, to assist and advise the City in carrying out the
Undertaking; and
(v) effecting any necessary amendment of the Undertaking.
SEMON I8. Bond 1rwjraace. The City Council finds that it is in the City's
best interest to purchase, and that a savings will result from purchasing, the Municipal Bond
Insurance Policy for the Bonds. The City shall purchase from the Bond Insurer the Municipal
Bond Insurance Policy insuring the prompt payment of the principal of and interest on the
MONIA.o: 16 LTGO Bonds, 1999
02/25/99 14:45 FAX 206 447 9700 F P & S FA018
Bonds and agrees to the conditions for obtaining that policy, including the payment of the
premium therefor.
[insert appropriate insurance langauge]
.SECTION 19: ,Teverability. If any one or more sections, subsections, or
sentences of this Ordinance are held to be unconstitutional or invalid, such decision shall not
affect the validity of the remaining portion of this Ordinance and the same shall remain in full
force and effect.
SEC774N 20: Effective DAM. This ordinance shall take effect and be in force
five(5) days from and after its passage, approval and publication as provided by law.
JIM WINE,MAYOR
ATTEST:
BRENDA JACOBLR, CITY CLERK
APPROVED AS TO FORM:
ROGER A. LUBOVICK CITY ATTORNEY
PASSED: day of . 1999.
APPROVED: day of . 1999.
PUBLISHED: day of 1999.
5w=1.oi 17 LTGO Bonds, 2999
02/2S/99 14:45 FAX 206 447 9700 F P & S
-� I hereby certify that this is a true copy of Ordinance No. , passed by
the City Council of the City of Kwt, Washington, and approved by the Mayor of the City of
Kent as hereon indicated.
(SEAL)
BRENDA JACOBER, CITY CLERK
soo�axi..o� is LTGO Bomis, 1999
02/25/99 13:17 LEHMAN BROTHERS SEArTL-P 3 253 850 2541 NO.323 P001
S21,245,000
CITY OF KENT,WASHINGTON
J LIMITED TAX GENERAL OBLIGATION BONDS, 1999
BOND PURCHASE AGREEMENT
'`---L '` 1999
City of Kent Post-iC Fax Note 7671 0" ;- zs * ► 9
220 Fourth Avenue South To�� Co.
Kent, Washington 98032
Phone* Phone
Ladies and Gentlemen: "* an-035 —1s#1 Fu*
The undersigned (the "Underwriter") heTeby o ers to enter into Bond
Purchase Agreement (the "Bond Purchase Agreement") with City of Kent, Washington
(the "City"), which upon the City's acceptance hereof will be binding upon the City
and the Underwriter. This offer is made subject to the City's acceptance by execution
of this Bond Purchase Agreement and its delivery to the Underwriter on or before
11:59 P.M., Pacific Daylight Time, on March 16, 1999; and, if not so accepted, will be
subject to withdrawal by the Underwriter upon notice delivered by the Underwriter to
the City at any time prior to the acceptance hereof by the City. All capitalized terms
not otherwise defined herein shall be as defined in Ordinance No. , adopted by
the City Council on March 16, 1999 (the "Ordinance") and the Official Statement (as
hereafter defined).
1. Purchase and Sale. Subject to the terms and conditions and upon the
basis of the representations, warranties and agreements hereinafter set forth, the
Underwriter hereby agrees to purchase from the City for offering to the public, and the
City hereby agrees to sell to the Underwriter for such purpose, all (but not less than all)
of the City's S21,245,000 Limited Tax General Obligation Bonds, 1999 (the "Bonds").
The Bonds shall be dated March 15, 1999, shall have the maturities, shall bear interest
at the rates and shall be subject to redemption as set forth in Exhibit A attached hereto,
such interest being payable commencing December • 1, 1999, and semiannually
thereafter on each June 1 and December 1 to the date such Bonds mature or are
redeemed. The aggregate purchase price of the Bonds shall be the purchase price set
forth in Exhibit A hereto, plus interest accrued (as described in Exhibit A) on the
Bonds from their date to the Closing Date (as hereinafter defined).
2. The Official Statement and Authorizing Instruments. The Bonds small
be otherwise as described in the Official Statement of the City, dated the date hereof,
relating to the Bonds, which, together with all appendices thereto, and with such
changes therein and supplements thereto that are consented to in writing by the
Underwriter, is herein called the "Official Statement," and shall be issued and secured
RBK1KA990400.039
02 25!99 1E:17 LEHMAN BROTHERS SEArTLT 25 350 2541 =00?
�-- under the Ordinance. The City authorizes the use of the Official Statement in
connection with the public offering and sale of the Bonds. The City also approves the
use by the Underwriter, before the date hereof, of the preliminary Official Statement,
dated March 1999, relating to the Bonds, which together with the appendices
attached thereto, is herein referred to as the "Preliminary Official Statement," in
connection with the public offering of the Bonds.
Promptly after the acceptance hereof by the City, the City shall cause to be
delivered to the Underwriter copies of the final Official Statement (together
thereto) d with the appendices attached ated the date hereof.
The City hereby authorizes the Underwriter, and the Underwriter agrees at its
own expense, to file one copy of the Official Statement, together with any supplement
or amendment thereto, with at least one of the nationally recognized municipal
securities information repositories designated by the Securities and Exchange
Commission (the "SEC") and two copies of the Official Statement (with any required
forms) to the Municipal Securities Rulemaking Board ("MSRB") or its designee
pursuant to MSRB Rule G-36 no later than ten business days following the date
hereof.
3. Public Offering. The Underwriter agrees to make a bona fide public
offering of all the Bonds initially at the public offering prices (or yields) set forth on
the inside cover page of the Official Statement, provided that the initial public offering
prices (or yields) may be changed, from time to time, by the Underwriter as it deems
necessary in connection with the marketing of the Bonds.
4. Representations, Covenants and Warranties. The City represents,
covenants and warrants to the Underwriter that:
(a) The Ordinance and this Bond Purchase Agreement are legal, valid
and binding obligations of the City enforceable against the City in accordance
with their terms except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting
creditors' rights or contractual obligations generally and by the exercise of
judicial discretion in appropriate cases and no authorization or approval is
required for the execution and delivery of the Ordinance or this Bond Purchase
Agreement by the City, except such authorizations or approvals as shall have
horn nhtainaA at nr prior to tho Cloning, eopioc of -ekioh aho.Il be
the Underwriter at the Closing.
(b) Except for the omission of such information that is dependent
upon the final pricing of the Bonds for completion, all as permitted to be
excluded by SEC Rule 15c2-12 ("Rule 15c2-12"), the Preliminary Official
Statement was, as of its date, true and correct in all material respects and did not
2
02,25/99 13:18 LEHMAN BROTHERS SEArTLt a 253 850 2541 NO.323 P003
�r
contain any untrue statement of a material fact or omit to state any material fact
necessary to make the statements and information therein contained, in light of
the circumstances under which they were made, not misleading.
(c) The Official Statement is and at all times subsequent hereto up to
and including the Closing Date will be, true and correct in all material respects
and does not and will not contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements and information
therein contained, in light of the circumstances under which they were made,
not misleading.
(d) The City has duly authorized and approved the execution of the
Official Statement by the Mayor or his designee, including any amendments
thereto under the terms of this Bond Purchase Agreement.
(e) The City covenants and agrees to cause sufficient quantities of the
Official Statement to be delivered to the Underwriter to enable the Underwriter
to comply with the requirements of Rule 15c2-12 and of MSRB Rule G-32,
without charge, within seven business days of the date hereof and, if the Closing
Date is less than seven business days after the date hereof upon request of the
Underwriter, in sufficient time to accompany any confirmation requesting ._
payment from any customers of the Underwriter.
(f) The City further covenants and agrees that if, after the date hereof
and until 25 days after the "end of the underwriting period" (as described
below), any event shall occur as a result of which it is necessary to amend or
supplement the Official Statement to make the statements therein, in the light of
the circumstances under which they were made when the Official Statement is
delivered to a purchaser, not misleading, or if it is necessary to amend or
supplement the Official Statement to comply with law, the City shall notify the
Underwriter and provide the Underwriter with such information as it may from
time to time request, and to forthwith prepare and furnish, at its own expense (in
a form and manner approved by the Underwriter), a reasonable number of
copies of either amendments or supplements to the Official Statement so that the
statements in the Official Statement as so amended and supplemented will not,
in light of the circumstances under which they were made when the Official
Statement is delivered to a purchaser, be misleading or so that the Official
Statement will comply with applicable law. Unless otherwise notified in
writing by the Underwriter, the City can assume that the "end of the
underwriting period" for purposes of Rule 15c2-12 shall be the Closing Date. if
such notice is so given in writing by the Underwriter, the Underwriter agrees to
notify the City in writing following the occurrence of the "end of the ..,
underwriting period" as defined in Rule 15c2-12.
3
02.•25/99 13:18 LEHMAN BROTHERS SEAtTLT 253 950 2541 NO.323 P004
(g) The City will advise the Underwriter promptly of the institution of
any proceedings known to it by any governmental agency prohibiting or
otherwise affecting the use of the Official Statement in connection with the
offering, sale or distribution of the Bonds.
(h) When delivered to The Depository Trust Company ("DTC") for
the account of the Underwriter and paid for in full in accordance with the terms
of this Bond Purchase Agreement, the Bonds (i) will have been duly authorized,
executed, issued and delivered by the City, and (ii) will constitute valid, legally
binding obligations of the City except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting creditors' rights or contractual obligations generally to the extent
constitutionally applicable and by the exercise of judicial discretion in
appropriate cases.
(i) As of the time of acceptance hereof and as of the Closing, and
except as disclosed in the Official Statement, to the knowledge of the City, no
litigation is pending or is threatened in any court that (i) seeks to restrain or
enjoin the issuance, sale or delivery of any of the Bonds, (ii) contests or affects
the validity of the Bonds, the Ordinance, this Bond Purchase Agreement or the
pledge of the City's full faith and credit to the payment of the Bonds, (iii)
contests in any way, the completeness, accuracy or fairness of the Official
Statement, or (iv) in any material respect might affect adversely the transactions
contemplated herein, in the Ordinance or in the Official Statement.
6) The City will furnish such information, execute such instruments
and take such other action in cooperation with the Underwriter as they may
reasonably request to qualify the Bonds for offer and sale under the Blue Sky or
other securities laws and regulations of such states and other jurisdictions of the
United States as the Underwriter may designate, except the City shall not be
required in connection therewith or as a condition thereof to execute a general
consent to service of process or to qualify to do business as a foreign
corporation in any state.
S. The Closing. At 8:00 A.M., Pacific Daylight Time, on March 1999,
or at such other time or on such earlier or later business day as shall have been
mutually agreed upon by the City and the Underwriter (the "Closing Date"), the City
will deliver to the Underwriter the Bonds, duly executed and authenticated, through the
facilities of DTC in New York, New York or such other place to be mutually agreed
upon by the City and the Underwriter, and shall deliver to the Underwriter the
documents mentioned in Section 6 hereof, at such place in Seattle, Washington, as may
be mutually agreed upon by the City and the Underwriter. The Underwriter will
accept such delivery and pay the purchase price of the Bonds as set forth in Section 1
hereof by certified check or by wire in immediately available federal funds. The
a
02/25/99 13:18 LEHMAN BROTHERS SEAtTLt 253 850 2541 N0.323 P005
payment and delivery of the Bonds, together with the delivery of the aforementioned
documents, is herein called the "Closing". The Bonds shall be made available to the
Underwriter at the offices of DTC at least one business day before the Closing for
purposes of inspection, and are to be left with DTC for safekeeping until release at
Closing. The Underwriter acknowledges that the City is to have no responsibility for
such safekeeping of the Bonds.
6. Closing Conditions. The Underwriter has entered into this Bond
Purchase Agreement in reliance upon the representations and warranties herein and the
performance by the City of its obligations hereunder, both as of the date hereof and as
of the Closing Date. The Underwriter's obligations under this Bond Purchase
Agreement are and shall be subject to the performance by the City of its obligations to
be performed hereunder and under the documents mentioned in this Section 6, at or
prior to the Closing, and also shall be subject to the following conditions:
(a) The representations and warranties of the City contained herein
shall be true, complete and correct in all material respects at the date hereof and
on the Closing Date, as if made on and as of the Closing Date.
(h) At nr prior +o +I%db Cloeim& Vao Us&2oz-.rx;j;,w A&"11 aw�.iw �Iu�G
copies of the final Official Statement manually executed on behalf of the City
by the Mayor; provided, that as promptly as practicable after the Closing Date,
such reasonable number of certified or conformed copies of the foregoing as the
Underwriter may request.
(c) At or prior to the Closing, the Underwriter shall receive the
approving opinions of Foster Pepper & Shefelman, PLLC, Bond Counsel to the
City, as to the Bonds, dated the Closing Date and substantially in the form
included in the Official Statement as Appendix A, and an opinion, dated the
Closing Date and addressed to the Underwriter, of Perkins Coie LLP, counsel to
the Underwriter, in a form acceptable to the Underwriter.
(d) At or prior to the Closing, the Underwriter shall receive a
municipal bond insurance policy issued by MBLA Insurance Corporation
("MBIA") insuring the payment of the principal of and interest on the Bonds,
together with an opinion of counsel to MBIA regarding (i) the enforceability of
the municipal bond insurance policy and (ii) the adequitcy of the information
regarding MBIA and the municipal bond insurance policy set forth in the
Official Statement.
(e) At or prior to the Closing, the Underwriter shall receive evidence,
satisfactory to the Underwriter, that the Bonds are rated " " by Moody's
Investors Service, Inc. and " " by Standard & Poor's Ratings Group. --
5
02,25i99 13:18 LEHMAN BROTHERS SEArTL* 4 253 950 2541 N0.323 P006
(f) At or prior to the Closing, the Underwriter shall receive such
additional certificates, instruments and other documents as the Underwriter may
reasonably deem necessary to evidence the truth and accuracy as of the time of
the Closing of the representations of the City and the due performance or
satisfaction by the City at or prior to such time of all agreements then to be
performed and all conditions then to be satisfied by the City.
7. Termination of Contract. In recognition of the desire of the City and
the Underwriter to effect a successful public offering of the Bonds, the Underwriter
shall have the absolute right to terminate this Bond Purchase Agreement by notification
to the City if at any time at or prior to the Closing an "event" (as defined below) occurs
that, in the reasonably judgment of the Underwriter, materially and adversely affects (i)
the market price or marketability of the Bonds or (h) the ability of the Underwriter to
enforce contracts for We of the Bonds. If the City is unable to satisfy the conditions
contained in this Bond Purchase Agreement or if the obligations of the Underwriter
shall be terminated for any reason permitted by this Bond Purchase Agreement, this
Bond Purchase Agreement shall terminate and neither the Underwriter nor the City
shall be under a further obligation hereunder, except as set forth in Section 8 hereof.
For purposes of this Section 7, an "event" shall mean any of the following: legislation
is introduced or enacted by a governmental body with authority over the City; a court
decision is rendered; a local, national or international calamity or crisis occurs; a
general banking moratorium is declared anywhere in the United States of America;
trading is suspended or materially restricted on any national securities exchange; the
ratings on any City obligations, including the Bonds, are lowered or the possibility of
such action is publicly announced; the Official Statement is amended without the
Underwriter's consent; a material misstatement or omission in the Official Statement is
discovered after the Official Statement is distributed; or any other event of similar
consequence or nature.
8. Expenses. The City shall pay or cause to be paid from the proceeds of
the Bonds or other funds of the City available to it, the expenses incident to the
performance of its obligations hereunder, including, but not limited to: (a) the fees and
disbursements of the Bond Registrar in connection with the issuance of the Bonds; (b)
the fees and disbursements of Bond Counsel and any other experts or consultants
retained by the City in connection with the transactions contemplated hereby; (c) the
cost of obtaining ratings on the Bonds; and (d) the cost of printing the Preliminary
Official Statement and the final Official Statement.
The Underwriter shall pay the cost of delivering the purchase price of the Bonds
in immediately available federal funds and all other expenses it incurs in connection
with their public offering and distribution of the Bonds, including the fees and
disbursements of its counsel.
6
02./25/99 13:19 LEHMAN BROTHERS SEAPTLt 253 850 2541 NO.323 P009
Exhibit A
DESCRIPTION OF CERTAIN TERMS
OF THE BONDS
Aggregate Principal Amount: $21,245,000.00
less aggregate original issue discount: ()
less aggregate underwriter's discount:
Aggregate Purchase Price: �*
*plus accrued interest from , 1999 to the Closing Date.
Maturity Dates and Interest Rates:
Interest
Due Dec. 1 Principal Amount Rate Yield Price
2000 $1,220,000 % %
2001 1,260,000
2002 1,305,000
2003 1,360,000
2004 I,405,000
2005 1,470,000 -
2006 1,525,000
2007 1,150,000
2008 1,195,000
2009 1,245.1000
2010 655,000
2011 680,000 '
2012 715,000
2013 745,000
Redemption Provisions:
Optional Red'empdon. The Bonds maturing in the years 200_ through 200
are not subject to redemption prior to their stated dates of maturity. Bonds maturing
on and after December 1, 2008, are subject to optional redemption prior to their stated
mat»ritioc at A,* rapti'5" -Rive City, on Dooms loor 1, ^..0 va lLwa.altri, ua vvhvlc Ui
in part (maturities to be selected by the City and by lot within a maturity as the Bond
Registrar shall determine) at any time, at the following prices (expressed as a
percentage of the principal amount of the Bonds to be redeemed), plus accrued interest
to the date of redemption:
A-1
02125199 13:19 LEHMAN BROTHERS SEArTLT 253 S50 2541 NO.323 P009
Redemption Dates Redemption Prices
December 1, 20 through November 30, 20_ 101%
December 1, 20 and thereafter 100
Mandatory Redemption. The Bonds maturing on December 1, 2019, are Term
Bonds and are subject to mandatory redemption prior to maturity, in part, by lot in
such manner as the Bond Registrar shall determine, at 100 percent of the principal
amount thereof plus accrued interest to the date of redemption, from mandatory
deposits into the Bond Fund in the years and principal amounts set forth below:
Mandatory Sinking Fund ✓Mandatory Sinking Fund
Redemption Dates Redemption Amounts
December 1, 2014 S 780,000
December 1, 2015 820,000
December 1, 2016 860,000
' December 1, 2017 905,000
December 1, 2018 950,000
December 1, 2019 (maturity) 1,000,000
I
i
1
i
I
1
A-2
.
Kent City Council Meeting
Date March 16, 1999
Category Other Business
1 . SUBJECT: EMERALD RIDGE II FINAL PLAT FSU-98-10
2 . SUMMARY STATEMENT: This date has been set to consider the
final plat application submitted by Tom O 'Conner, for the
Emerald Ridge II Final Plat . The City Council approved the
preliminary plat with conditions on January 19, 1999 .
3 . EXHIBITS: Memo and map
4 . RECOMMENDED BY: Staff
(Committee, Staff, Examiner, Commission, etc . )
5 . UNBUDGETED FISCAL/PERSONNEL IMPACT: NO X YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS :
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember seconds
to approve the Emerald Ridge II Final Plat and to authorize the
Mayor to sign the final plat mylar.
DISCUSSION:
ACTION: 1'�--
Council Agenda
Item No. 7B
CITY OF LLV
Jim White, Mayor
Planning Department (253) 859-3390/Far (253) 850-2544
James P. Harris, Planning Director
MEMORANDUM
March 16, 1999
TO: MAYOR JIM WHITE AND CITY COUNCIL
FROM: JAMES P. HARRIS, PLANNING DIRECTOR
SUBJECT: EMERALD RIDGE II FINAL PLAT #FSU-98-10
On January 19, 1999,the Kent City Council approved the Hearing Examiner's recommended
approval of Emerald Ridge II Preliminary Plat(#SU-98-10), a 3.35 acre, 15-lot residential plat.
The property is located at 102"d Place S.E. @ S.E. 244 h Street in Kent, Washington.
Staff recommends the City Council approve the Emerald Ridge II Final Plat#FSU-98-10 with
the attached conditions and authorize the Mayor to sign the mylar.
JPH1mjp1fsu9810cc.doc
Enclosure
cc: Fred S. Satterstrom, Planning Manager
2203th AVENUE*SOUTH / KENT.%YASHINGTON')8032.4595/TELEPHONE I253)859-3300
EMERALD RIDGE DIVISION II
#FSU-98-10
THE KENT HEARING EXAMINER WITH CONDITIONS APPROVED THE EMERALD
RIDGE DIVISION II PRELIMINARY PLAT ON DECEMBER 3, 1998.
KENT CITY COUNCIL
APPROVED THE PRELIMINARY PLAT WITH THE
BELOW LISTED CONDITIONS
ON JANUARY 19, 1999
A. GENERAL CONDITIONS OF APPROVAL
1. The owner/subdivider shall implement all mitigation measures required mitigated
Determination of Nonsignificance for the proposed Emerald Ridge Division II
preliminary subdivision, File#ENV-98-58.
B. PRIOR TO RECORDING THE SUBDIVISION:
1. The Owner/ Subdivider shall receive approval for engineering drawings from the
Department of Public Works,and either construct or bond for the following:
a. A gravity sanitary sewer system to serve all lots. The sewer system shall ..�
be extended from the existing City sanitary sewer system and shall be
sized to serve all off-site properties within the same service area. In
addition, the sanitary sewer system shall be extended across the entire
subdivision as needed to serve adjacent properties.
The septic system, if any, serving the existing home within the proposed
subdivision shall be abandoned in accordance with King County Health
Department Regulations.
b. A water system meeting domestic and fire flow requirements for all lots.
The existing well, if any, shall be abandoned in accordance with the
requirements of the Department of Ecology.
C. Detailed Drainage Plans which show how the 100-year post-developed
stormwater runoff from this development will be collected, conveyed,
stored, treated and released to the City stormwater drainage system in
compliance with the Kent Construction Standards.
d. An open-to-the-air stormwater treatment system in accordance with Kent
Construction Standards to mitigate for potential impacts to stormwater
runoff quality.
Conditions of Approval
Emerald Ridge Division II
#SU-98-10
e. Street Improvement Plans for the subdivision road which meets the City's
minimum street width criteria. This subdivision street shall be in
conformance with the requirements for a Residential Street as more fully
described in the City of Kent Construction Standards, including but not
limited to: 5-foot wide cement sidewalks along the entire frontage of the
platted property; at least 32-feet of paved street section; combined curbs &
gutters on both sides of the street; a City-approved street lighting system;
public stormwater drainage and treatment facilities; and street related
appurtenances.
2. The Owner / Subdivider shall submit and receive approval for a Detailed Tree
Plan from the Planning Department. Grading Plans cannot be approved by the
Department of Public Works without an approved Detailed Tree Plan.
3. The Owner / Subdivider shall provide the following restriction on the face of the
recorded plat: RESTRICTION: Direct vehicular access to or from Southeast 244`h
Street is not permitted for lots 1 and 14.
4. The Owner / Subdivider shall dedicate all necessary public rights-of-way for the
public improvements required for subdivision approval, and shall otherwise
convey all public and private easements required for subdivision approval.
5. Prior to release of any construction bonds, the Department of Public Works must
approve As-Built Drainage Plans, As-Built Water Plans, As-Built Sewer Plans,
and Street Improvement Plans for the entire project prepared by a professional
land surveyor licensed by the State of Washington in conformance to the
requirements of Appendix "E" of the City of Kent Construction Standards.
6. A fee-in-lieu of park dedication shall be paid by the owner/subdivider in
conformance with KCC 12.04.490.
C. PRIOR TO THE ISSUANCE OF A PERMIT ON ANY LOT IN THE EMERALD
RIDGE SUBDIVISION II #SU-98-10 THE OWNER/SUBDIVIDER SHALL:
1. Record the plat.
2. Construct all of the improvements required above.
3. Receive approval of the required As-built Drawings for Water, Sewer, Street, and
Stormwater Facilities.
NS-1/
2
All It Nl ll.. <,..,•... J a
EMERALD RIDGE II FINAL PLAT #FSU-98-10
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SE 248th ST. ` o
Kent City Council Meetin
Date March
Category other Businesi
1 . SUBJECT: EAST HILL SEWER INTERCEPTOR - CONDEMNATION
ORDINANCE
2 . SUMMARY STATEMENT: For the past several years, the Public
Works Department has been developing the East Hill Sewer
Interceptor project, which consists of a new lift station and
an accompanying interceptor. We have acquired many of the
necessary easements, however, there are some we feel may
require condemnation. Therefore, it has been recommended that
condemnation proceedings be authorized. This matter is on a
"fast track" to complete construction during this summer' s "dry
season" and will be brought to the Public Works/Planning
Committee on Monday, March
16,
3 . EXHIBITS: Public Works Director memorandum
4 . RECOMMMED BY: Staff
(Committee, Staff, Examiner, Commission, etc . )
5 . TsNBUDGETED FISCAL/PERSONNEL INIPAM, NO___-!— YES
6 . EXPENDITURE REQUIRED: $
SOURCE OF FUNDS:
7 . CITY COUNCIL ACTION:
Councilmember moves, Councilmember ���'° second
adoption of Ordinance No. -3 Yq5 authorizing condemnation
proceedings for the East Hill Sewer Interceptor.
DISCUSSION: ro
ACTION:
Council Agenda
Item No. 7C
DEPARTMENT OF PUBLIC WORKS
March 15, 1999
TO: Public Worlcs,/Planning,Committee
FROM: Don WickstromA�d
RE: East Hill Sewer Interceptor Project
A good portion of the City's East Hill sewer service area as reflected in the attached
map (approx. 1300 acres) is presently being served via 4 separate sewer lift stations.
Under our comprehensive sewer plan just recently adopted and as also denoted in
past Plans, one lift station with.an accompanying interceptor would ultimately service
this area.
The Del Web lift station located in King County Housing Authority's Spring Wood
Glen Apartment complex (approx. 13000 block &L SE 274' St) is the largest &oldest
(30yrs) of the 4 stations. It is also the driver behind implementing the above subject
project because it is presently operating at full capacity with no capability for
expansion, due to both structural and property constraints. We have been developing
this project (East Hill Sewer Interceptor project) which consists of a new lift station
and an accompanying interceptor over several years. We are presently in the process
of acquiring the necessary right of way. We have had all parcels appraised and have
met and negotiated with all affected property owners. We have acquired many of the
necessary easements however, there are some we feel that condemnation will be
required. As such we are asking for condemnation authority.
Our intent is to have both the new lift station and the accompanying interceptor
operational at the same time as King County's new 277' Corridor interceptor
becomes operational. Said anticipated date is March/April of 2000. The easements
for which condemnation may be necessary affect the construction of our interceptor.
The interceptor is very deep (varies in depth up to 30 feet) and parallels a wetland
pond (See attached map for project alignment). As such it can only be constructed,.
during the dry summer months when the ground water table is the lowest. This
means we need to secure all easements prior to this summer's construction season. If
not, the Del Web lift station will have to operate through another year which would
be precarious at best. A loss of one of the pumps thereat means the potential of a
sewer overflow. Due to the critical time crunch we have taken the liberty of placing
this item on the March 16' Council agenda for adoption of the ordinance. If the
Committee does not concur we will pull it. The Public Works Department
recommends that the Committee concur on the adoption of the condemnation
ordinance.
MOTION: Recommend to full Council adoption of the Condemnation Ordinance.
MP43"
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PROPOSED DEL WEBB
SANITARY SEWER MAIN
8-29-96
ORDINANCE NO.
AN ORDINANCE of the City of Kent,
Washington, providing for the acquisition of a certain
property and/or property rights in order to construct,
extend, widen, improve, alter. maintain and reconstruct
the City's East Hill Sewer Interceptor in area lying
generally south of Kent-Kangley Road(SR 516) and east
of 1161h Avenue SE; providing for the condemnation,
appropriation, taking and damaging of such property
rights as are necessary for any and all public sewer system
purposes; providing for the payment thereof out of the
East Hill Sewer Interceptor Fund (Fund D-40); and
directing the City Attorney to prosecute the appropriate
legal proceedings, together with the authority to enter into
settlements, stipulations or other agreements; all of said
properties located within King County, Washington.
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
ORDAINS AS FOLLOWS:
SECTION 1. After hearing the report of City staff, and after reviewing
the planned improvements for the East Hill Sewer Interceptor Project(the "Project"),the
City Council finds and declares that the public convenience, use, health, safety and
necessity demand that the City of Kent condemn, appropriate, take and damage all or
portions of certain real properties located in King County,Washington, in order to acquire
the necessary property and/or property rights for the construction of the Project, including
all necessary appurtenances. These properties are legally described in Exhibits A -
attached and incorporated by this reference (the "Properties"). The purposes for which
1
this condemnation is authorized shall include, without limitation, all acts necessary to
complete the construction, extension, improvement, widening, alteration, maintenance
and reconstruction of the Project.
SECTION2. The City authorizes the acquisition by condemnation of all
or a part of the Properties for the construction, extension, improvement, widening.
alteration, maintenance and reconstruction of the Project, including acquisition of
property and/or property rights, together with all necessary appurtenances and related
work to make a complete improvement according to City standards.
SECTION 3. The City shall condemn the Properties only after just
compensation has first been made or paid into court for the owner or owners in the
manner prescribed by law.
SECTION 4. The City shall pay for the entire cost of the acquisition by
condemnation provided for in this ordinance through the City's "East Hill Sewer
Interceptor" project fund (Fund D-40) or from any of the City's general funds, if
necessary, as may be provided by law.
SECTION S. The City authorizes and directs the City Attorney to
commence those proceedings provided by law that are necessary to condemn the
Properties. In commencing this condemnation procedure,the City Council authorizes the
City Attorney to enter into settlements, stipulations, or agreements in order to minimize
damages, which settlements, stipulations, or agreements may include, but not be limited
to, the amount of just compensation to be paid, the size and dimensions of the properties
condemned, and the acquisition of temporary construction easements and other property.
interests.
SECTION 6. Any acts consistent with the authority and prior to the
effective date of this ordinance are ratified and confirmed.
SECTION 7. The provisions of this ordinance are declared to be separate
and severable. The invalidity of any clause, sentence, paragraph, subdivision, section or
portion of this ordinance, or the invalidity of the application thereof to any person or
circumstances shall not affect the validity of the remainder of this ordinance, or the
validity of its application to other persons or circumstances.
SECTION 8. This ordinance, being the exercise of a power specifically
delegated to the City legislative body, is not subject to referendum, and shall take effect
and be in force five (5) days after publication as approved by law.
JIM WHITE, MAYOR
ATTEST:
BRENDA JACOBER, CITY CLERK
APPROVED AS TO FORM:
ROGER A. LUBOVICH, CITY ATTORNEY
PASSED the day of , 1999.
APPROVED the day of , 1999.
PUBLISHED the_day of ' 1999.
I hereby certify that this is a true and correct copy of Ordinance
No. passed by the City Council of the City of Kent, Washington, and approved by
the Mayor of the City of Kent as hereon indicated.
BRENDA JACOBER, CITY CLERK
P:\Civil\Ordinance\condom n.Eadiil I Sewer.dm
vvo 3
REPORTS FROM STANDING COMMITTEES AND STAFF
A. COUNCIL PRESIDENT
B. OPERATIONS COMMITTEE
C. PUBLIC SAFETY COMMITTEE
D. PUBLIC WORKS/PLANNING COMMITTEE
E. PARKS COMMITTEE
F. ADMINISTRATIVE REPORTS
EXECUTIVE SESSION
REPORTS FROM SPECIAL COMMITTEES
CONTINUED COMMUNICATIONS
A.