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HomeMy WebLinkAboutCity Council Committees - Operations - 02/03/2015 KENT WASH 1NG�0N Operations Committee Agenda Council Members: Bill Boyce * Dana Ralph * Les Thomas, Chair February 3, 2015 4:00 p.m. Item Description Action Speaker Time Pace Call to order. Roll Call. Changes to the Agenda. 1. Approval of Check Summary Report dated YES 1/1/2015 thru 1/15/2015. 2. Approval of Minutes dated January 20, YES 1 2015. 3. Trebron Company Inc. (Sophos YES M. Carrington 5 5 Maintenance and Support) 4. Emergency Management Performance YES R. Goehring 5 9 Grants - Monitoring Agreements *staff will provide exhibits upon request 5. 2015 Annexation Sales Tax Credit YES B. Lopez 5 51 Threshold Unless otherwise noted,the Operations Committee meets at 4:00 p.m.on the first and third Tuesday of each month.Council Chambers East, Kent City Hall, 220 4`h Avenue South, Kent,98032-5895. Dates and times are subject to change. For information please contact Annalise LaPorte at(253)856-5705. Any person requiring a disability accommodation should contact the City Clerlts Office at(253)856-5725 in advance. For TDD relay service call Washington Telecommunications Relay Service at 1-800-833-6388. This page intentionally left blank 1 sswa�KENT WASHINGTON OPERATIONS COMMITTEE MINUTES January 20, 2015 Committee Members Present: Les Thomas, Chair and Dana Ralph. Bill Boyce excused The meeting was called to order by L. Thomas at 4:02 p.m. 1. APPROVAL OF THE CHECK SUMMARY REPORT DATED 12/16/2014 THROUGH 12/31/2014. D. Ralph moved to approve the check summary report dated 12/16/2014 through 12/31/2014. L. Thomas seconded the motion, which passed 2-0. 2. APPROVAL OF MINUTES DATED JANUARY 6, 2015. D. Ralph moved to approve the Operations Committee minutes dated December 16, 2014. L. Thomas seconded the motion, which passed 2-0. 3. ORDINANCE AMENDING KCC 5.03 "TAXICABS AND VEHICLES FOR-HIRE". City Attorney T. Brubaker, proposed an amendment to an ordinance that regulates taxicabs. The amendment will allow the same rules to be applied to taxicabs and vehicles for-hire as they move from jurisdiction to jurisdiction. This ordinance reflects revisions adopted by King County and has been passed by neighboring municipalities. D. Ralph moved to recommend Council adopt an ordinance amending Chapter 5.03 of the Kent City Code, entitled "Taxicabs and Vehicles For-Hire," to update the Kent City Code in conformity with the King County Code. L. Thomas seconded the motion, which passed 2-0. 4. STOP LOSS AMENDMENT 6. Benefits Division Manager B. Fowler, discussed an amendment to the City's agreement with Lifewise Assurance Company, a third party administrator for individual and aggregate stop loss coverage. After a competitive bid process and revising their preliminary decision, Lifewise reduced their renewal increases from 12.7% to 2.5%, saving the City approximately $40,000. D. Ralph moved to recommend the 2015 LifeWise Assurance Company amendment for our individual stop loss coverage be placed on the City Council consent calendar for the February 3, 2015 meeting subject to approval of final terms and conditions by the City Attorney. L. Thomas seconded the motion which passed 2-0. S. 2015 INSURANCE PROGRAM REVIEW — INFORMATION ONLY. Risk Manager C. Hills briefed the committee on the coming year's insurance program. Liability —The City's Self-Insured Retention (SIR) remains at $250,000 per loss for 2015. The Liability insurance market has softened the past year and more reinsurers entered the market, which is to the City's advantage. The premium will decrease by $35,472 (5.1%). 2 Operations Committee Minutes January 20, 2015 Page: 2 Worker Compensation — The current Excess Worker Compensation insurer, Safety National Casualty, has increased the minimum premium to $65,000. The City negotiated an interim approach that would be preferable for budget reasons. The 2015 premium is $60,876 (10.5% increase) and the 2016 premium will be $65,000. Property — Renewal is July 1, 2015. The 2014/2015 premiums were 9% lower than 2013/2014. Barring severe losses in first and early second quarters of 2015, rates are expected to remain flat. 6. BANKING SERVICES RFP - INFORMATION ONLY Finance Director A. BeMiller noted to the committee that the written Request for Proposal (RFP) for the City's banking services has been completed and was advertised in the Kent Reporter, Seattle Times, and the Daily Journal of Commerce on Friday, January 16. The City's timeline for this process includes a deadline for submittal of proposals on March 3, 2015 and a preliminary selection of a firm on March 31, 2015. A recommendation to the Operations Committee is scheduled for Tuesday, April 21, 2015. It will be asked of the City Council to approve a four-year contract with at least two contract extension periods of three years each. 7. INVESTMENT COMMITTEE - INFORMATION ONLY Section 3.02.060 of the City's investment policy requires the creation of an investment committee to serve in an advisory capacity. The investment committee is comprised of the finance and public works directors, the Mayor or designee, and an appointed member of the Operations Committee to serve a two-year term. The term shall run concurrently with the term of the Council President, except to the extent an interim appointment becomes necessary. The committee will meet quarterly starting the second quarter of 2015. S. 2015 REFUNDING - INFORMATION ONLY The finance department is collaborating with Piper ]affray & Co, the City's financial advisor, on refunding the City's 2006 General Obligations bonds. The draft schedule indicates a closing date in early April 2015. The bond ordinance will likely come before the Operations Committee on March 3 and then before the full Council on March 17. Inclusion of the 2008 bond in this refunding process is still being determined. Further analysis and discussion of any arbitrage issues need to be completed prior to staff having a clear recommendation. For maximum flexibility, the bond ordinance will likely be included, but without the obligation to refund the 2008 series if the savings reduce prior to pricing in late March. 9. 2014 SUPPLEMENTAL BUDGET ORDINANCE Financial Planning Manager B. Lopez, requested authorization to approve the technical gross budget adjustment ordinance reflecting an overall increase of $5,366,674 for budget adjustments made between October 1, 2014 and December 31, 2014. 3 Operations Committee Minutes January 20, 2015 Page: 3 An overall increase of $3,604,938 was previously approved by Council. Included in this amount is $1,377,391 to allocate technology capital to specific projects, $767,994 to allocate Traffic Impact Fees (TIF) to SE 256th, and $317,000 Department of Transportation (DOT) Highway Safety Improvement Grant. The remaining amount not yet approved by Council is an overall increase of $1,604,938 and is comprised of $1,500,000 in additional budget authority needed to pay off the $2.7million debt in the ShoWare Operating Fund, $62,708 for a Target Zero Teams Grant, and $37,466 for miscellaneous mini grants from 2007. With the stipulation that the item be brought before the whole City Council on February 3, 2015, D. Ralph moved to recommend Council approve the consolidating budget adjustment ordinance for adjustments made between October 1, 2014 and December 31, 2014 reflecting an overall budget increase of $5,366,674. L. Thomas seconded the motion, which passed 2-0. 10. NOVEMBER 2014 FINANCIAL PACKET Using information available through November, the ending fund balance is estimated to increase by $5.4 million and end the year at $14.6 million. This includes the General Fund reserves of $10.7 million, or 14.2%, contingency for unanticipated costs of $1.5 million, $2 million restricted for annexation, and $424,000 in the Strategic Opportunities Fund. It also includes $2.7 million of the General Fund reserves that has been set aside the pay off the debt in the ShoWare Operating Fund. When that transaction is completed, the General Fund reserves are expected to be nearly $8 million, or 10.6%. Overall revenues are currently coming in nearly $4 million, or 5.2% above budget. This includes a continuous positive trend in sales tax, averaging a 7.6% increase over 2013 collections. Year-end projection is expected to exceed the budget by $2 million, which equates to 10.1%. Building permits and plan check fees revenues are exceeding projections, currently running nearly $1.6 million above budget, or nearly 33%. As of November, overall expenditures are expected to end the year $2 million below budget, or 2.6%. However, this does not take into account the $2.7 million transfer to pay off the debt in the ShoWare Operating Fund. That transaction requires additional budget authority, which has been included in the final 2014 budget adjustment ordinance going to City Council on February 3, 2015. The meeting was adjourned at 4:42 p.m. by L. Thomas. l Annalise LaPorte Operations Committee Secretary 4 This page intentionally left blank 5 INFORMATION TECHNOLOGY DEPARTMENT Mike Carrington, Director ISI� T Phone: 253-856-4607 WASH IN oro x Fax: 253-856-4700 Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: February 3, 2015 TO: Operations Committee SUBJECT: Trebron Company Inc. (Sophos Maintenance/Support) - Authorize MOTION: Recommend Council approve the Mayor to sign the Agreement For Trebron Company, Inc. in the amount of $82,546 for the purchase of Sophos Security and Data Protection software support, subject to terms and conditions acceptable to the City Attorney and Information Technology Director. SUMMARY: Sophos Security and Data Protection software support - 3 year contract renewal with annual payments of $27,515 due on January 1 for the next 3 years. This software protects the City's network from viruses and other cyber-threats. EXHIBITS: Trebron Purchase Agreement BUDGET IMPACT: IT Operational Budget funds approved in the 2015 - 2016 Biennial Budget are earmarked for this expenditure. 6 SOPHOS - .. ` .. w .trebron.com A''`h*llnuni f4nrtn it COMPANY INC. Date: January 13, 2015 Buyer: City of Kent, WA Trebron Account Executive: Eric Peters Trebron Company, Inc. 5506 3511 Ave. N.E. Seattle, WA 98105 Mailing 220 4th Ave S Telephone: 206-527-3477 Corporate Address: Kent, WA 98032 Email: epeters(atrebron.com Purchase Agreement 3 Years The Parties hereto, "Buyer," City of Kent, WA and "Seller," Trebron Company, Inc. hereby agree as follows: 1. Description: Buyer agrees to purchase from Seller, "Product" as listed in the table below for$75,384.00 (Seventy Five Thousand Three Hundred Eighty Four United States Dollars and 00/100), plus applicable shipping costs and sales tax, unless Buyer is exempt from the payment of such tax and provides Seller with evidence of such exemption. Qty Included Components Term Total Price Users Months $USD 1,000 Sophos End User Protection 36` $67,300.00 1,000 Sophos Email Protection —Advanced 36` Included 1,000 Sophos Web Protection —Advanced 36` Included - Trebron Professional Services— 10 hours - No Cost 200 Sophos Server Protection for Windows, Linux and vShield 36 $8,084.00 2. Payment: To be made to Seller in three annual installments of$25,128.00 each. The first payment is due on or before January 31, 2015. The second payment is due on or before January 31, 2016. The third and final payment is due on or before January 31, 2017. Payment Terms are net thirty (30) days from date of invoice. All payments shall be by check made payable to Trebron Company, Inc. at the address listed above. 3. Term: Buyer's license for the product expires approximately 12-31-2017 (3 years). 4. Representations: Buyer understands that Seller is a reseller of hardware and software products. Buyer acknowledges that it has not relied on any representations by Seller and has independently investigated the products and determined the suitability of the products for Buyer's intended purposes. 5. Warranty: Seller shall pass through to Buyer any original manufacturers' warranties for Product acquired by Seller for Buyer, including Licensor's warranties for Product. Except for the foregoing, Seller shall deliver the Product"as is" and Seller makes no other warranty, express or implied, including any warranty of merchantability or fitness for a particular purpose. 6. Limitation of Liability: Under no circumstances will Seller be liable for any incidental, indirect, special or consequential damages from Buyer or any third party, including damages for lost revenue, profits, data or use, even if Seller has been advised of the possibility of such damages. 7. Late Fees: Late payments shall accrue interest beginning from the payment due date at a rate of eighteen percent (18%) per annum or the maximum allowable legal rate whichever is lower. In the event that any payment or amount owed is more than ninety (90) days past due, Seller may declare the entire amount due and owing in addition to accrued fees and costs. Buyer's failure to pay under this agreement may result in termination of Buyer's software license. 8. Cancellation: Once Seller has accepted Buyer's order, Buyer cannot cancel the agreement, in whole or in part, without Seller's express written consent. Such cancellation is conditioned upon Buyer's reimbursement to Seller for all costs incurred by Seller in connection with the order up to the time of cancellation—including, but not limited to Seller's cost for cancellation. 9. Special Offer: By taking advantage of the 3 year"Purchase Agreement" Buyer will save a tremendous amount over purchasing 1 year at a time. Should Buyer select to upgrade to a Sophos UTM product during the course of the contract then assuming 1st payment has been made in full the balance of the remaining unused license may be applied to a purchase with Seller for Sophos UTM product with a prorated amount of the balance applied to the future purchase for Sophos UTM Licensing. Seattle,WA(Corporate) 5506 35"Ave NE,Seattle,WA 98105 1 Office(206)527-3477 1 Fax(206)527-4288 Springfield,MO Office(417)473-9199 1 Fax(206)527-4288 Page 1 of 2 7 10. Attorney's Fees: In the event any cost or expense, including reasonable attorney's fees ("Costs') are incurred in the enforcement of this Agreement, the prevailing party shall be entitled to reimbursement for all such Costs in addition to damages. 11. Governing Law: This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. Venue for any and all actions shall be in the state or federal courts of King County, Washington. 12. Software: Buyer will negotiate all software license provisions of Product directly with the Licensor. 13. Miscellaneous: This Agreement must be executed on or before 2-17-15 or it becomes void. 14. Waiver: The waiver of any breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach and shall be effective only if presented in writing. 15. Severability: If any provision of this Agreement is deemed invalid or unenforceable, all other provisions of this Agreement shall remain in full force and effect. 16. Entire Agreement: This Agreement constitutes the entire Agreement of the parties and may not be amended or superseded except in writing with execution by both parties. City of Kent, WA IT Director Signature Business Office Signature - Required Printed Name Printed Name Title Title Date Date Must be signed by an authorized representative of Buyer Billing Information Trebron Company, Inc. Do you accept invoices via Email? Y ❑ N ❑ Signature Accounts Payable Contact Norbert van Dam Printed Name Email Address President Title Phone Date 1-26-15 Page 2 of 2 _ § 7 7 0 ƒ / \ > ; \ \ \ ] / U) CL e ) F ) \ 0 — o a LL \ „ ] { c / UT k \ M W0 o & / } e r S ® 23 / \ ( d \ „ o : ® & m >1 ) ) 2 2 aC:) a 6 6 6 > F"Lo J ) ± — � \ ( � � ) \ % 0 \ \ \ Q \ / 2 a $ - - - C § @ ƒ { / 2 & / a \ % ] \ 2g § G = ) » ( : = z / / / § m L)U) << \ \ - - - & : ) ) 3C0 E ! m < cq � k \� \ \ \ \ ] 7 § O § ; _ \ ( - c = ) � k ¥ : � \ � 4) $\ f @ 'Z. L � � 0 / ` k ; [ \ E » / ! m / & L)B < 2 gE � \ \ R ± § f CLE3: , ° . } \ \ k / } ) } ! \ 9 FINANCE 440 Aaron BeMiller Director Phone: 253-856-5260 N'147KEN T Fax: 253-856-6255 WASHING-ON Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: February 3, 2015 TO: Operations Committee SUBJECT: Emergency Management Performance Grant MOUs and ILA — Recommend MOTION: Recommend Council authorize the Mayor to sign two Memorandums of Understanding with the Kent Fire Department Regional Fire Authority regarding the administration of Emergency Management Performance Grants, and the Interlocal Agreement with the City of Auburn for monitoring services required under these grants, subject to final terms and conditions acceptable to the Finance Director and the City Attorney. SUMMARY: The City Council authorized acceptance of two federal Emergency Management Performance Grants from the Washington Military Department on October 13, 2013 and November 18, 2014, respectively as follows: $118,112 (June 1, 2013 through September 30, 2014) and $93,525 (June 1, 2014 through August 31, 2015). The purpose of these grants is to assist with the enhancement, sustainment and improvement of state, local, and tribal emergency management programs. Regional fire authorities and fire protection districts are not eligible to receive these grants directly from the Washington Military Department. Accordingly, these grants are awarded directly to the City and are then passed-through to the Kent Fire Department RFA. The City is required under federal grant requirements to enter into separate grant agreements with the Kent Fire Department RFA for each award. The City is also required to perform grant monitoring activities designed to ensure grant requirements are met. The City does not have the prerequisite knowledge or expertise to perform the monitoring activities for these awards. The City of Auburn has agreed to perform these activities on behalf of the City for a cost not expected to exceed $1,000 per grant award. There is an additional $1,000 per grant award contingency. BUDGET IMPACT: Expected maximum of $1,000 for each of the two grants. EXHIBITS: Interlocal Agreement and Memorandums of Understanding Kent Council Operations Committee EMPG Agreements 10 INTERLOCAL COOPERATION AGREEMENT Federal Grant Subrecipient Monitoring Services Emergency Management Performance Grants THIS INTERLOCAL AGREEMENT (the "Agreement") is entered into under the authority of the Interlocal Cooperation Act, Chapter 39.34 RCW, between the City of Kent, Washington ("Kent") and the City of Auburn, Washington ("Auburn"), both municipal corporations organized under the laws of the State of Washington, for the purpose of establishing a contractual relationship under which Auburn will assist Kent with the monitoring requirements of Kent's Emergency Management Performance Grant ("EMPG"). Recitals WHEREAS, both Kent and Auburn (collectively "the Parties") are "public agencies" as defined by Chapter 39.34 RCW, and are authorized by that statute to cooperate on a basis of mutual advantage in order to provide for services and facilities; and WHEREAS, Kent desires to contract with Auburn for grant oversight responsibilities, and Auburn has agreed to assist Kent on an interim basis subject to the terms and conditions set forth herein; and WHEREAS, the Parties desire to enter into this Agreement for the purpose of defining their respective rights, obligations, costs and liabilities regarding this undertaking; NOW, THEREFORE, in consideration of the mutual benefits set forth herein, and other good and sufficient consideration the receipt and sufficiency of which are mutually acknowledged, the Parties hereby agree as follows: Terms and Conditions Section 1 - Authority and Purpose This Agreement is executed pursuant to Chapter 39.34 RCW as a cooperative endeavor of the Parties. The purpose of this Agreement is to establish a contractual relationship providing for the Parties' responsibilities with monitoring Kent's Emergency Management Performance Grant ("EMPG"). This Agreement shall be reasonably construed in the furtherance of this purpose. Section 2 —Monitoringi Services Auburn shall provide services for Kent subject to the provisions of this section. ILA, Kent& Auburn 1 EMPG E14-088 & E15-135 11 A. The services provided to and for Kent by the City of Auburn's Emergency Preparedness Manager, or equally qualified employee, shall include all responsibilities, tasks, duties and functions associated with subrecipient monitoring of Kent's Emergency Management Performance Grant ("EMPG") identified herein in accordance with applicable federal requirements, as may be requested by the Kent Finance Director or his/her designee. B. "Subrecipient monitoring services" (or "services") means: (1) The processes and procedures undertaken by a pass-through entity (Kent) as necessary to verify that the subrecipient (Kent RFA) is complying with all applicable laws, regulations, contract or grant agreement provisions; (2) The monitoring of the subrecipient's satisfaction of performance goals under the EMPGs; (3) The processes and procedures to verify that applicable audit requirements are satisfied and audit findings are reviewed for timely corrective action (State Administrative and Accounting Manual, Chapter 50.30.55). C. Auburn will perform subrecipient monitoring services with respect to Kent's EMPG awards, Grant Agreement Nos. E14-088, as amended, and E15-135, which are attached as Exhibit A and Exhibit B, respectively, and incorporated by this reference. Such services shall include without limitation the following: 1. Review of performance reports; 2. Monitoring and documenting the completion of Agreement deliverables; 3. Documentation of phone calls, meetings, a-mails and correspondence; 4. Review of reimbursement requests and supporting documentation to ensure allowability and consistency with Agreement work plan, budget and federal requirements; 5. Observation and documentation of Agreement related activities, such as exercises, training, funded events and equipment demonstrations; 6. On-site visits to review equipment records and inventories, to verify source documentation for reimbursement requests and performance reports, and to verify completion of deliverables; Further, such services shall also include issuance of separate reports to Kent for each Grant Agreement reflecting the monitoring scope, approach, conclusions and, as applicable, areas of concern noted. The monitoring reports shall be provided to Kent as follows: 1. Grant Agreement Number E14-088, as amended (Exhibit A) — March 31, 2015 2. Grant Agreement Number E15-135 (Exhibit B) - Thirty (30) days after the end of each calendar quarter effective January 1, 2015 ILA, Kent& Auburn 2 EMPG E14-088 & E15-135 12 D. In addition to any requirements set forth in applicable regulations, plans or policies, the following provisions shall apply to the City of Auburn's Emergency Preparedness Manager's services for Kent: 1. Work Hours. For the term of this Agreement, it is estimated that the City of Auburn's Emergency Preparedness Manager will provide up to 16 hours of services for each EMPG award, for a total of 32 hours of service. The City of Auburn, Kent, and the Kent RFA will develop a mutually agreeable date for commencement of work under this Agreement by the City of Auburn's Emergency Preparedness Manager's daily work schedule. However, the monitoring reports for each of the EMPG grant awards shall be delivered to Kent by the dates established in Section 2(C) of this Agreement. 2. Office Space. For purposes of providing services to and for Kent, the City of Auburn's Emergency Preparedness Manager shall operate primarily from offices and facilities provided for by the City of Kent, or otherwise arranged for by the City of Kent. 3. Vehicle Use. The City of Auburn shall provide their Emergency Preparedness Manager with a vehicle and the Emergency Preparedness Manager shall maintain a valid Washington State driver's license throughout the term of this Agreement. 4. Tools and Equipment. Except as otherwise specified in this Agreement or directed by Kent, the Emergency Preparedness Manager shall utilize Auburn's tools and equipment for purposes of providing services to and for Kent. 5. Code of Conduct. The Emergency Preparedness Manager shall remain exclusively an Auburn employee at all times relevant to this Agreement and shall observe and comply fully with Auburn's Personnel Manual and all applicable Auburn employment policies. 6. Insurance. Auburn shall maintain at all times during the course of this Agreement a general liability and auto liability policy or comparable coverage with a policy limit of no less than $5,000,000.00. Section 3 - Costs and Payment The services provided to Kent by the City of Auburn's Emergency Preparedness Manager shall be compensated at the rates and in the manner set forth in this section. A. Fee per agreement term. Kent shall compensate Auburn for services for an amount not to exceed $1,000.00 for each of the two EMPG awards covered by ILA, Kent& Auburn 3 EMPG E14-088 & E15-135 13 this Agreement (Exhibit A and Exhibit B, attached hereto), for a total of $2,000.00. This maximum fee shall be comprised of payment of Auburn's costs associated with; wages and benefits, travel expenses and all other costs incurred by Auburn with respect to providing services under this Agreement. By written agreement of the Parties' administrators of this agreement, this maximum fee may be increased to up to $2,000.00 for each of the EMPG awards, for a maximum total of $4,000.00. B. Invoice and Payment Procedure. Auburn shall submit a written invoice to Kent for the cost of the services provided pursuant to this Agreement after the related monitoring report for each Grant Agreement has been provided to Kent. Each invoice shall detail the services provided and expenses incurred. Kent shall remit appropriate payment to Auburn within 30 days of receiving such invoice. Section 4 - Term This Agreement shall be effective upon mutual execution by the Parties, and shall remain in effect until January 31, 2016 unless terminated earlier in accordance with Section 5. The Parties may at their option renew this Agreement for a mutually agreed upon term by a writing signed by both Parties. Section 5 - Termination Either Party may terminate this Agreement with or without cause by providing the other Party with thirty (30) days written notice of its intent to terminate. Kent shall remit timely payment for all satisfactory services rendered by the Emergency Preparedness Manager prior to the effective date of any termination. Section 6 — Administration: No Separate Entity Created The Auburn [Position] and the Kent Finance Director shall serve as Administrators of this Agreement. No separate legal entity is formed hereby. Section 7 - Property Acquisition, Retention and Disposition No joint acquisition of real or personal property is contemplated by this Agreement. Except as provided in this section, any other real or personal property acquired by a Party shall remain within the sole and exclusive ownership of that Party following the termination or expiration of this Agreement. Section 8 - Indemnification The City of Kent shall defend, indemnify and hold the City of Auburn, its officers, officials, employees and volunteers harmless from and against any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or ILA, Kent& Auburn 4 EMPG E14-088 & E15-135 14 resulting from the acts, errors or omissions of the City of Kent in performance of this Agreement, except for injuries and damages caused by the sole negligence of the City of Auburn. It is further specifically and expressly understood that the indemnification provided herein constitutes the City of Kent's waiver of immunity under industrial insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the Parties. The provisions of this section shall survive the expiration, invalidation or termination of this Agreement, or of any of its provisions. The City of Auburn shall defend, indemnify and hold the City of Kent, its officers, officials, employees and volunteers harmless from and against any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or resulting from the acts, errors or omissions of the City of Auburn in performing services for Kent under this Agreement, except for injuries and damages caused by the sole negligence of the City of Kent. Section 9 - Governing Law and Venue This Agreement shall be governed by the laws of the State of Washington. The venue for any action arising out of this Agreement shall be the Superior Court for King County, Washington. Section 10 - No Employment Relationship Created The Parties agree that nothing in this Agreement shall be construed as creating an employment relationship between Auburn and any employee, agent, representative or contractor of Kent, or between Kent and any employee, agent, representative or contractor of Auburn. Section 11 - Notices Notices to Kent shall be sent to the following address: Finance Director City of Kent 220 Fourth Avenue South Kent, WA 98032 Notices to Auburn shall be sent to the following address: [Position] City of Auburn 25 West Main Street Auburn, WA 98001 ILA, Kent& Auburn 5 EMPG E14-088 & E15-135 15 Section 12 - Duty to File Agreement With County Auditor Prior to this Agreement's entry into force, Auburn shall, pursuant to RCW 39.34.040, (1) file this Agreement with the King County Auditor's Office, or (2) list this Agreement by subject on Auburn's internet web site. Section 13 - Integration: Prior Agreement(s); Conflict Waiver This document, together with any exhibits thereto, constitutes the entire embodiment of the contract between the Parties, and, unless modified in writing by an amendment signed by the Parties hereto, shall be implemented exclusively as described above. All oral agreements and understandings between the Parties related to the subject matter hereof shall be deemed superseded by this Agreement and shall hereafter be null and void. Section 14 - No Third-Party Beneficiary Created This Agreement is executed for the sole and exclusive benefit of the signatory Parties. Nothing in this Agreement, whether expressed or implied, is intended to confer any right, remedy or other entitlement upon any person other than the Parties hereto, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third party, nor shall any provision herein give any third party any right of action against any party hereto. Section 15 — Signatory Warranty Each signatory hereto warrants and represents that he/she has been authorized to execute this Agreement by appropriate action of the legislative body of his/her respective city. Section 16 — Execution in Counterparts This Agreement may be executed in separate counterparts. Section 17 — Regulatory Authority Reserved Nothing herein shall be construed as waiving, limiting or otherwise abridging in any manner regulatory authority of either party, which Kent and Auburn hereby expressly reserve in full. EXECUTED this __ day of _ , 2015 ILA, Kent& Auburn 6 EMPG E14-088 & E15-135 16 CITY OF AUBURN: CITY OF KENT: Sign in blue or black ink only Print Name: Nancy Backus Print Name: Suzette Cooke Title: Mayor Title: Mayor DATE: DATE: APPROVED AS TO FORM: APPROVED AS TO FORM: Auburn Law Department Kent Law Department ILA, Kent& Auburn 7 EMPG E14-088 & E15-135 17 HOMELAND SECURITY AWARD MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF KENT AND KENT FIRE DEPARTMENT REGIONAL FIRE AUTHORITY EMERGENCY MANAGEMENT PERFORMANCE GRANT GRANT AGREEMENT NUMBER E14-088 This Memorandum of Understanding (MOU), entered into this day of between the City of Kent, a Washington municipal corporation (hereinafter the "City") and the Kent Fire Department Regional Fire Authority (hereinafter the "RFA"), a Washington municipal corporation formed in accordance with Chapter 52.26 RCW. RECITALS WHEREAS, the City is an applicant for Emergency Management Performance Grant ("EMPG") funds (Catalogue of Federal Domestic Assistance-CFDA 97.042) under Public Law 113-76, as amended by Post-Katrina Emergency Management Reforms Act of 2006 (PKEMRA), as amended, (Pub. L. No. 109-295) (Title 6 U.S.0 Chapter 762, Section 662, Public Law 109-295, Title 6 U.S.C. 762, as amended by Earthquake Hazards Reduction Act of 1977, Public Law 95-124, Title 42 U.S.0 7701, as amended by Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 93- 288, Title 42 U.S.0 5121, as amended by National Flood Insurance Act of 1968, Public Law 90-448, Title 42 U.S.0 4001; and WHEREAS, the City desires to contract with the RFA for the performance of certain eligible activities described within this MOU; and WHEREAS, it is appropriate and mutually desirable that the RFA be designated by the City to undertake the aforementioned eligible activities, so long as the requirements of the EMPG award, Homeland Security regulations, and state and local laws are adhered to, as provided for herein; and WHEREAS, the purpose of this MOU is to provide for cooperation between the City and the RFA, as the parties to this MOU, in the provision of such eligible activities; and WHEREAS, the parties are authorized and empowered to enter into this MOU pursuant to the OMB Circular A-133, Chapter 39.34 RCW, and/or by the Constitution and the enabling laws of the State of Washington; NOW THEREFORE, For and in consideration of the terms and conditions provided in this MOU, the parties mutually covenant and agree as follows: 18 INDEX To MOU PART I - GENERAL CONDITIONS.............................................................................................................. 1. Scope Of MOU..........................................................................................................................1 2. Scope Of Project.......................................................................................................................1 3. Purpose And Primary Objective .................................................................................................. 1 4. Commencement And Termination Of MOU ...................................................................................2 5. Administration .........................................................................................................................2 6. Compensation And Method Of Payment.......................................................................................2 7. Eligible Costs ...........................................................................................................................3 8. Operating Budget.....................................................................................................................3 9. Amendments ...........................................................................................................................3 10. Assignment And Subcontracting.................................................................................................3 11. Hold Harmless And Indemnification.............................................................................................3 12. Project Close-Out .....................................................................................................................4 13. Insurance................................................................................................................................4 14. Conflict Of Interest...................................................................................................................4 15. Suspension And Termination Of MOU ..........................................................................................5 PART II - FEDERAL, STATE, AND LOCAL PROGRAM REQUIREMENTS............................................................. 1. Nondiscrimination.....................................................................................................................6 2. Procurement Standards.............................................................................................................7 3. Uniform Administrative Requirements And Cost Principles.. ...........................................................8 4. Labor Standards.......................................................................................................................8 5. Data Universal Numbering System..............................................................................................8 6. Administrative And/Or Financial Requirements.............................................................................8 7. Reimbursement/Invoicing Procedures .........................................................................................9 8. Reporting Requirements............................................................................................................9 9. Equipment Management........................................................................................................... 9 10. Environmental and Historical Preservation.................................................................................. 9 11. Procurement........................................................................................................................... 9 12. NIMS Compliancy .................................................................................................................... 9 13. EMPG Specific Requirements..................................................................................................... 9 14. General Terms And Conditions................................................................................................ . 9 15. EMPG Work Plan...................................................................................................................... 9 16. Public Information ................................................................................................................. 10 17. Other Federal And State Requirements ..................................................................................... 10 18. Local Requirements ................................................................................................................ 10 PART III - MONITORING AND REPORTING REQUIREMENTS......................................................................... 1. Monitoring............................................................................................................................. 10 2. Fiscal Reporting Responsibilities ............................................................................................... 11 3. Audits................................................................................................................................... 11 PART IV - RECORDKEEPING REQUIREMENTS............................................................................................ 1. Program Records and Inspections............................................................................................. 11 2. Financial Records ................................................................................................................... 12 3. Records Of Program Operations, Management And Evaluation...................................................... 12 4. Procurement Records.............................................................................................................. 13 5. Nondiscrimination And Equal-Opportunity Records ..................................................................... 13 6. Conflict Of Interest................................................................................................................. 13 7. Verification Of Subcontractor's Eligibility.................................................................................... 14 19 PART I - GENERAL CONDITIONS 1. SCOPE OF MOU The agreement between the parties shall consist of this MOU and its signature page; the recitals page; the general conditions and any special conditions; the federal, state and local program requirements; the monitoring and reporting requirements; the recordkeeping requirements; each and every project exhibit, appendix, and attachment incorporated into the MOU; all matters and laws incorporated by reference herein; and any written amendments made according to the general conditions. This MOU supersedes any and all former agreements applicable to projects attached as Exhibits to this MOU. 2. SCOPE OF PROJECT The RFA shall use the funds provided herein only to perform the activities authorized by this MOU and as set forth in the Washington State Military Department Grant Agreement No. E14-088 (Grant Agreement), as amended by Amendment A, both of which are attached as Exhibit A and incorporated by this reference. This MOU may be amended in writing from time to time, in accordance with the general conditions, for the purpose of adding new projects, amending the scope of work, or for any other lawful purpose. 3. PURPOSE AND PRIMARY OBJECTIVE The purpose of the Grant Agreement (Exhibit A) is to provide U.S. Department of Homeland Security (DHS) Emergency Management Performance Grant (EMPG) funds to local jurisdictions and tribes with emergency management programs to support and enhance those programs as described in the FFY13 EMPG Work Plan (Exhibit C of the Grant Agreement, as amended by Amendment A). Pursuant to Section III Purpose of the Interlocal Agreement for the Division of Services Resulting from the Formation of the Kent Fire Department Regional Fire Authority, the RFA performs the following services on behalf of the City: Fire Prevention, Emergency Management, and Fire Investigation Services. Further, Exhibit C Office of Emergency Management of the Interlocal Agreement requires the RFA to apply for and manage all disaster recovery grants, Emergency Performance Grants, and other public assistance grants. Emergency Management Performance Grants (EMPG) can only be awarded to cities, counties and tribes with emergency management programs. Therefore, the RFA is not eligible to receive Emergency Performance Grants (EMPG) directly from the Washington State Military Department. Because the RFA administers the City's emergency management program, the City is providing the EMPG funds received pursuant to the Grant Agreement, as amended, to the RFA. 20 4. COMMENCEMENT AND TERMINATION OF MOU This MOU covers the time period of June 1, 2013 through September 30, 2014. No work which occurred prior to June 1, 2013 is funded by this MOU. The RFA shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. Costs incurred prior to start date of this MOU will not be reimbursed. This MOU is contingent upon the availability of funds to be allocated through federal appropriations. Therefore, should funds to support RFA's services not be made available through anticipated federal appropriations, this MOU shall immediately terminate without risk or liability to the City and without obligation to disburse funds or to reimburse RFA any funds expended in anticipation of funding availability. All work shall be done at RFA's own risk, and RFA shall be responsible for all losses associated with services provided before the City issues its written notice to proceed. All acts consistent with the authority of the MOU and prior to the date of the MOU's execution are hereby ratified and affirmed, and the terms of this MOU shall be deemed to have applied. S. ADMINISTRATION A. The RFA shall appoint a liaison person who shall be responsible for overall administration of EMPG funded project(s) and coordination with the City's Finance Department. The person appointed shall be designated in Exhibit B, which is attached and incorporated by this reference. The RFA shall also designate one or more representatives who shall be authorized to submit the A- 19 Invoice Form and completed Reimbursement Spreadsheet (in the format provided by the Washington State Military Department) detailing the expenditures for which reimbursement is sought, which are established through the Grant Agreement. B. The RFA shall provide ten (10) days written notice to the City of any changes in program personnel as established through this MOU and Article I Key Personnel of the Grant Agreement. 6. COMPENSATION AND METHOD OF PAYMENT A. The City shall reimburse the RFA only for eligible costs allowed pursuant to, and in an amount not to exceed the amount specified, in the Grant Agreement, and according to the procedures developed by the City of Kent. Reimbursement shall be based on the A-19 Invoice Form, and completed Reimbursement Spreadsheet, which shall be submitted to the Military Department by the RFA's authorized representative. B. The RFA shall submit an A-19 Invoice Form and completed reimbursement at least quarterly but not more frequently than monthly. 21 7. ELIGIBLE COSTS A. All costs incurred must be reasonable, necessary and of a nature which clearly relate to the specific purposes and end product of the Grant Agreement under which the services are being performed. Care must be taken by all concerned in incurring costs to assure that expenditures conform to these general standards and the following criteria for eligibility of costs. B. To be eligible for reimbursement, costs must: (1) Conform to the terms and conditions of the Grant Agreement; (2) Be necessary and reasonable for proper and efficient execution of the contractual requirements and in accordance with an approved budget; (3) Be no more liberal than policies, procedures, and practices applied uniformly to other activities of the RFA; (4) Be accorded consistent treatment through application of account policy and procedures approved and/or prescribed herein; (5) Not be allowable under or included as costs of any other federal, state, local or other RFA-financed programs in either prior or current periods; (6) Be net of all applicable credits such as purchase discounts, rebates or allowances, sales of publication or materials, or other income or refunds; and (7) Be fully documented. S. OPERATING BUDGET The RFA shall apply the funds received from the City under this MOU in accordance with Exhibit E Budget Sheet of the Grant Agreement. 9. AMENDMENTS Either party may request modifications in the scope of permissible activities, terms, or conditions of this MOU. Proposed modifications which are mutually agreed upon shall be incorporated by a written amendment to this MOU. 10. ASSIGNMENT AND SUBCONTRACTING A. The RFA shall not assign any portion of this MOU without the written consent of the City, and it is further agreed that said consent must be sought by the RFA not less than fifteen (15) days prior to the date of any proposed assignment. B. Any work or services assigned or subcontracted hereunder shall be subject to each provision of this MOU and proper bidding procedures to the extent herein. 11. HOLD HARMLESS AND INDEMNIFICATION A. The RFA agrees that it is financially responsible and liable to the City for any audit exception or other financial loss to the City which occurs due to the RFA's negligence or failure to comply with the terms of this MOU unless such audit exception or other financial loss is the result of the City's negligence or failure to 22 comply with the terms of this MOU in which case the City shall be financially responsible for such audit exception or other financial loss. B. The RFA further agrees to defend, indemnify, and hold the City, its elected and appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from and against all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor of any person(s), including RFA's employees or third parties on account of personal injuries, death, or damage to property arising out of services performed or omissions of services or in any way resulting from the acts or omissions of the RFA and/or its agents, employees, volunteers, subcontractors, or representatives under this MOU. C. The City further agrees to defend, indemnify, and hold the RFA, its elected and appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from and against all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor of any person(s), including City's employees or third parties on account of personal injuries, death, or damage to property arising out of services performed or omissions of services or in any way resulting from the acts or omissions of the City and/or its agents, employees, volunteers, subcontractors, or representatives under this MOU. 12. PROJECT CLOSE-OUT The RFA acknowledges and agrees that the amounts set forth in the Grant Agreement shall be used only to reimburse the RFA for eligible costs incurred by the RFA during the period set forth in said Grant Agreement and that upon expiration of such period, or upon earlier termination pursuant to this MOU, the RFA shall have no interest in any said amount which is not required to reimburse the Agency for eligible costs incurred before such expiration or earlier termination. 13. INSURANCE The RFA shall maintain insurance in the types and amounts set forth in Exhibit C, which is attached and incorporated by this reference. 14. CONFLICT OF INTEREST A. Interest of Officers, Employees, or Agents - No officer, employee, or agent of the City or RFA who exercises any functions or responsibilities in connection with the planning and carrying out of the City EMPG program or the RFA's project, or any other person who exercises any functions or responsibilities in connection with the City's Finance Department, shall have any personal financial interest, direct or indirect, in the MOU, and the City and RFA shall take appropriate steps to assure compliance. B. Interest of Subcontractor and Their Employees - The RFA agrees that it will incorporate into every contract or subcontract, which is required to be in writing and made pursuant to this MOU, the following provisions: 23 The Contractor covenants that no person who presently exercises any functions or responsibilities in connection with the City EMPG program has any personal financial interest, direct or indirect, in this MOU. The Contractor further covenants that he/she presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of his/her services hereunder. The Contractor further covenants that in the performance of this MOU, no person having any conflict of interest shall be employed. Any actual or potential conflict of interest on the part of the Contractor or his/her employees must be disclosed to the RFA and the City. 15. SUSPENSION AND TERMINATION OF MOU A. Suspension for Failure to Perform - In the event of a failure to comply with any terms or conditions of this MOU or failure to provide in any manner the activities or other performance as agreed to herein, the City reserves the right to withhold all or any part of payment, suspend all or any part of the MOU, or prohibit the RFA from incurring additional obligations of funds until the City is satisfied that corrective action has been taken or completed. The option to withhold funds is, in addition to and not in lieu of, the City's right to terminate the MOU pursuant to Paragraph (B) of this Section 15. B. Termination of MOU by the City - This MOU is subject to termination upon thirty (30) days written notice by the City to the Agency in the event that: (1) The RFA mismanages or makes improper or unlawful use of EMPG funds; (2) The RFA fails to comply with any term or condition expressed herein or any applicable federal, state, or local regulations or ordinances; (3) EMPG funds no longer become available from the federal government or through the City; (4) The RFA fails to carry out activities required by this MOU; or (5) The RFA fails to submit reports or submits incomplete or inaccurate reports in any material respect. C. Termination of MOU by the RFA - This MOU is subject to termination upon thirty (30) days written notice by the RFA to the City in the event that: (1) The City fails in its commitment under this Agreement to provide funding for services rendered, as herein provided; or (2) EMPG funds no longer become available from the federal government or through the City. D. Unless otherwise terminated pursuant to Paragraphs (B) and (C) of this Section 15, this MOU shall terminate on the termination date specified in Part 1 Section 1 of the MOU and shall be subject to extension only by mutual agreement and amendment in accordance with Part I, Section 9 of this MOU. 24 E. Upon termination of this MOU, any unexpended balance of Grant Agreement funds shall remain with the City. F. In the event termination occurs under Paragraph (B) of this Section 15, the RFA shall return to the City all funds that were expended in violation of the terms of this MOU, if any, including, but not limited to, any unexpended EMPG funds distributed to the RFA under this MOU, any accounts receivable, or any assets or interests therein of any type and in any form acquired, leased, or rehabilitated with EMPG monies. PART II - FEDERAL, STATE, AND LOCAL PROGRAM REQUIREMENTS 1. NONDISCRIMINATION A. General — The RFA shall comply with all federal, state, and local laws, regulations, and policies. No person shall, on the grounds of age, race, creed, color, sex, sexual orientation, religion, national origin, marital status, honorably discharged veteran or military status, or disability (physical, mental, or sensory) be denied the benefits of, or otherwise be subjected to discrimination under any project, program, or activity, funded, in whole or in part, under the Grant Agreement. B. Specific Discriminatory Actions Prohibited: (1) The RFA shall not, under any program or activity to which this MOU may apply, directly or through contractual or other arrangements, on the grounds of age, sex, marital status, race, creed, religion, color, national origin, or the presence of any sensory, mental, or physical handicap: i. Deny any person facilities, services, financial aid, or other benefits provided under the program or activity. ii. Provide any person with facilities, services, financial aid, or other benefits which are different, or are provided in a form different, from that provided to others under the program or activity. iii. Subject any person to segregated or separate treatment in any facility or in any matter or process related to receipt of any service or benefit under the program or activity. iv. Restrict in any way access to or enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, financial aid, or other benefits under the program or activity. v. Treat any person differently from others in determining whether the person satisfies any admission, enrollment, eligibility, membership, or other requirement or condition which individuals must meet in order to be provided facilities, services, or other benefits provided under the program or activity. vi. Deny any person any opportunity to participate in a program or activity as an employee. 25 (2) The RFA shall not utilize criteria or methods of administration which have the effect of subjecting individuals to unlawful discrimination on the basis of age, race, creed, color, sex, sexual orientation, religion, national origin, marital status, honorably discharged veteran or military status, or disability (physical, mental, or sensory). C. Employment: (1) In all solicitations under this MOU, the RFA shall state that all qualified applicants will be considered for employment. The words "equal opportunity employer" in advertisements shall constitute compliance with this section. (2) The RFA shall not unlawfully discriminate against any employee or applicant for employment in connection with the MOU because of age, sex, marital status, race, creed, religion, color, national origin, or the presence of any sensory, mental, or physical handicap, except when there is a bona fide occupational limitation. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training (Chapter 49.46 RCW, Executive Order 11246, as amended). (3) The RFA shall not unlawfully discriminate against any employee or applicant for employment in connection with the MOU because of age, race, creed, color, sex, sexual orientation, religion, national origin, marital status, honorably discharged veteran or military status, or disability (physical, mental, or sensory). D. Contractors and Suppliers: (1) No contractor, subcontractor, union, or vendor engaged in any activity under this MOU shall engage in any unlawful discrimination as defined in any federal, state, or local law. (2) EMPG funds shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or sub-recipient during any period of debarment, suspension, or placement in ineligibility status. 2 CFR Part 180 and Federal Executive Orders 12549 and 12689. E. Notice: The RFA shall include the provisions of the appropriate subsections A, B, C, D, and E of this Part II, Section 1 in every contract or purchase order for goods and services under this MOU, and shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or worker's representative of the commitments made in these subsections. 2. PROCUREMENT STANDARDS In awarding contracts pursuant to this MOU, the RFA shall comply with all applicable requirements of local and state law for awarding contracts, including but 26 not limited to procedures for competitive bidding, contractor's bonds, and retained percentages (Ch. 60.28 RCW, Ch. 39.12 RCW, and Ch. 39.04 RCW). In addition, the RFA shall comply with the requirements of 44 CFR Part 13 Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Where federal standards differ from local or state standards, the stricter standards shall apply. 3. UNIFORM ADMINISTRATIVE REQUIREMENTS AND COST PRINCIPLES The RFA shall comply with the policies, guidelines, and requirements of OMB Circular Nos. A-102, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (also known as "A-102 Common Rule"and are also located within Title 44 CFR Part 13), and OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments relocated to 2 CFR Part 225. 4. LABOR STANDARDS A. The RFA shall require that project construction contractors and subcontractors for contracts exceeding $2,000 awarded by the RFA pay their laborers and mechanics at wage rates in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a through 276a-7), as supplemented by Department of Labor regulations (29 CFR Part 5). In addition to complying with these federal labor standards, the RFA shall further require that all project construction contractors comply with all applicable state and local public works bidding and contracting regulations, specifically including, without limitation, the prevailing wage provisions set forth in Ch. 39.12 RCW and all regulations adopted by the State of Washington Department of Labor and Industries. B. The RFA shall require that project construction contractors and subcontractors comply with Federal Labor Standards Provisions and the Davis-Bacon wage determinations. For construction contracts, a copy of the Federal Labor Standards Provisions and the current Davis-Bacon wage determinations must be included in all construction bid specs and/or contracts over $2,000. S. DATA UNIVERSAL NUMBERING SYSTEM Pursuant to 2 C.F.R. §25.100(a), the City is required to establish a Dun and Bradstreet (D & B) Data Universal Numbering System (DUNS) as a universal identifier in order to receive federal financial assistance. In addition, programs or subrecipients receiving subawards from the City shall establish a DUNS. 2 C.F.R. § 25.200(c)(1). The RFA shall provide its DUNS to the City. 6. ADMINISTRATIVE AND/OR FINANCIAL REQUIREMENTS The RFA will comply with all requirements as reflected in Article II Administrative And/Or Financial Requirements of the Grant Agreement. 27 7. REIMBURSEMENT/INVOICING PROCEDURES The RFA will comply with all requirements as reflected in Article III Reimbursement/Invoicing Procedures of the Grant Agreement and Part I Section 6 Compensation And Method of Payment of the MOU. S. REPORTING REQUIREMENTS The RFA will comply with all requirements as reflected in Article IV Reporting Requirements of the Grant Agreement and Part I Section 6 Compensation And Method of Payment of the MOU. 9. EQUIPMENT MANAGEMENT The RFA will comply with all requirements as reflected in Article V Equipment Management of the Grant Agreement. 10. ENVIRONMENTAL AND HISTORICAL PRESERVATION The RFA will comply with all requirements as reflected in Article VI Environmental And Historical Preservation of the Grant Agreement. 11. PROCUREMENT The RFA will comply with all requirements as reflected in Article VII Procurement of the Grant Agreement. 12. NIMS COMPLIANCY The RFA will comply with all National Incident Management System (NIMS) requirements as reflected in Article IX NIMS Compliancy of the Grant Agreement. 13. EMPG SPECIFIC REQUIREMENTS The RFA will comply with all requirements as reflected in Article X EMPG Specific Requirements of the Grant Agreement. 14. GENERAL TERMS AND CONDITIONS The RFA will comply with all General Terms and Conditions established through Exhibit B General Terms and Conditions of the Grant Agreement. 15. EMPG WORK PLAN The RFA will administer the EMPG award in accordance with the Work Plan established through Exhibit C FFY13 Work Plan of the Grant Agreement. 28 16. PUBLIC INFORMATION A. In all news releases and other public notices related to projects funded under this MOU, the RFA shall include information identifying the source of funds as the City of Kent EMPG program. B. Pursuant to Exhibit B Part A.23 of the Grant Agreement, the RFA agrees to submit to the Washington Military Department prior to issuance all advertising and publicity matters relating to the Grant Agreement wherein the Department's name is mentioned or language used from which the connection of the Department's name may, in the Department's judgment, be inferred or implied. The RFA agrees not to publish or use such advertising and publicity matters without the prior written consent of the Department. C. The RFA acknowledges that this MOU and any other information provided by it to the City and/or relevant to the project(s) described in the Exhibit(s), are subject to the Washington State Public Disclosure Act, Chapter 42.56 RCW, except to the extent specifically exempted from disclosure therein. 17. OTHER FEDERAL AND STATE REQUIREMENTS The absence of mention in this MOU of any other federal or state requirements, which apply to the award and expenditure of federal funds made available by this MOU, is not intended to indicate that those federal or state requirements are not applicable to RFA activities. The RFA shall comply with all other federal and state requirements relating to the expenditure of federal funds, including but not limited to the Hatch Act (5 U.S.C. § 15) regarding political activities and the Architectural Barrier Act of 1968 (42 U.S.C. § 4151, et seq.). 18. LOCAL REQUIREMENTS The activities performed under this MOU are for the purposes of serving residents of the RFA service area and the RFA shall, to the extent reasonably possible, not use said funds to provide services outside the RFA service area, or for any other purpose, except as specifically authorized by this MOU. III - MONITORING AND REPORTING REQUIREMENTS 1. MONITORING Article VIII Sub-Grantee Monitoring of the Grant Agreement reflects that the Military Department will monitor the activities of the Sub-grantee from award to close-out. The RFA understands and agrees that it will be monitored by the City and the Military Department from time to time to assure compliance with all terms and conditions of this MOU and all applicable local, state, and federal laws, regulations, and promulgated policies. Monitoring by the City under this MOU shall include, but not be limited to on-site inspections by City staff. The City reserves the right to 29 contract with another local government or other contracting party to perform this service. The RFA shall provide a copy of any Military Department monitoring report to the City no later than thirty (30) days after the issuance of the report to the RFA. The RFA shall provide to the City its response and corrective action plan for all areas of concern contained in the monitoring report. 2. FISCAL REPORTING RESPONSIBILITIES The RFA shall provide fiscal statements or reports as may be required from time to time by the City, which statements or reports, or both, must indicate the status of all accounts and funds being used to perform under this MOU. The RFA shall maintain proper documentation and records of all expenditures incurred pursuant to the terms of this MOU in a manner as will facilitate auditing by the Department of Homeland Security, the Washington Military Department, and/or the City. 3. AUDITS A. If the RFA expends a total of $500,000 or more in federal financial assistance and has received federal financial assistance from the City during its fiscal year, it shall have an independent audit conducted of its financial statement and conditions, which shall comply with the requirements of generally accepted auditing standards (GAAS); General Accounting Office (GAO's) Standards for Audits of Governmental Organizations, Programs, Activities, and Functions; and OMB Circular A-133, as amended, and as applicable. Such audits are to be performed by the Washington State Auditor's Office (SAO). The RFA shall provide a copy of the audit report to the City no later than thirty (30) days after the audit's completion or six (6) months subsequent to the end of the RFA's fiscal year, whichever date is sooner. The RFA shall provide to the City its response and corrective action plan for all findings and reportable conditions contained in its audit. When reference is made in its audit to a Management Letter or other correspondence made by the auditor, the RFA shall provide copies of those communications and the RFA's response and corrective actions plan. B. The Catalog of Federal Domestic Assistance (CFDA) number for the EMPG program is 97.042. PART IV — RECORDKEEPING REQUIREMENTS 1. PROGRAM RECORDS AND INSPECTIONS The RFA shall make, maintain, and preserve books and records, of whatever form, detailing all EMPG-related expenditures and costs incurred by the RFA. All such books and records shall be made available to representatives of the City or the Military Department, or both, for formal inspection and, where necessary, copying. 30 Intentional noncompliance with this provision shall constitute a material breach of this MOU. Throughout the term of this MOU, the RFA shall establish and maintain current the records described in this Section. These records shall conform to the requirements and specifications of their individual source authorities, which are cited herein. Be advised that the listing in this Section is intended only to assist the RFA in identifying the required records and their respective authorities, and is not all inclusive. A. Time for Retention of Records - Except where otherwise specifically provided, all records as of the end of the term of this MOU shall be kept in an accessible file for at least six (6) years following final payment and closure of the grant under the Grant Agreement. B. Contract and Amendments - A complete copy of this MOU and all amendments thereto and notices there under. C. Records of City Approvals - Copies of all requests for amendments or revisions to this MOU and the City's subsequent approval or denial of such requests as are required under this MOU. D. Subcontracts and Agreements - Complete copies of all contracts, subcontracts, and agreements with third parties into which the RFA enters in the performance under this MOU; and all correspondence, reports, and other documentation pertaining to such contracts, subcontracts, and agreements. E. Additional Contract Requirements - The RFA shall submit to the City a copy of the most recent independent financial audit and a current list of the RFA's board of directors. 2. FINANCIAL RECORDS The RFA shall maintain all accounting records that accurately record the source and application of all funds; and recording funds received under this MOU, all other receipts, assets, authorizations and appropriations, obligations, disbursements and unobligated balances. The records must: A. Permit comparison of actual outlays with budgeted amounts; B. Permit reporting of financial data on the accrual basis; C. Be supported by source documentation; D. Be independently audited usually annually, but not less frequently than every two years. 3. RECORDS OF PROGRAM OPERATIONS, MANAGEMENT AND EVALUATION The RFA shall maintain all records of: A. Operating policies and procedures; B. Employee qualifications, training, and evaluation; 31 C. Principal operations data: work units completed; clients served, classified by client and service characteristics; staff hours utilized; etc. D. Self-evaluation of services, programs, and employment practices for compliance with 504 and ADA requirements. 4. PROCUREMENT RECORDS The RFA shall maintain all records of: A. RFA's adopted code of conduct governing officers' and employees' actions in contracting and purchasing; B. RFA's standard operating procedures for authorizing and executing purchases and contract procurements of various sizes and types. C. RFA's individual purchases or contracts over $10,000 as required by 44 CFR Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. D. RFA's procurement procedures utilized and the bases for supplier selection/contract award, for individual purchases or contracts over $10,000. S. NONDISCRIMINATION AND EQUAL-OPPORTUNITY RECORDS The RFA shall maintain: A. A tabulation of all RFA employees classified by race, position, and salary in the format of the U.S. Equal Employment Opportunity Commission Form EEO-4. B. Data identical to that required under A. and B. above for any subcontractor or agent employed in the performance under this MOU. C. Documentation of all substantive actions taken to assure that no prohibited discrimination occurs in the conduct of any of the RFA's operations. D. Documentation of all actions taken to make minority residents aware of the RFA's services and provide them with equal access to benefits. E. Record of the racial classification and gender of the majority owners of each private for-profit business with which the RFA contracts with any funds provided under this MOU. 6. CONFLICT OF INTEREST A. The RFA shall maintain records documenting that all RFA board members, officers, employees and consultants have been informed of the conflict of interest provisions of Exhibit B Part A.9 of the Grant Agreement and have acknowledged understanding those provisions. B. The RFA shall maintain a complete record of all requests for exceptions submitted under the Grant Agreement. 32 7. VERIFICATION OF SUBCONTRACTOR'S ELIGIBILITY The RFA shall maintain records documenting that the RFA, all subcontractors, and consultants have been determined not to be currently debarred, suspended, denied participation or declared ineligible to participate in federal government funded programs. 33 KENT FIRE DEPARTMENT REGIONAL FIRE CITY OF KENT: AUTHORITY: Sian in blue or black ink only Print Name: Suzette Cooke Print Name: Jim Schneider Title: Mayor Title: Fire Chief DATE: DATE: APPROVED AS TO FORM: Kent Law Department 34 HOMELAND SECURITY AWARD MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF KENT AND KENT FIRE DEPARTMENT REGIONAL FIRE AUTHORITY EMERGENCY MANAGEMENT PERFORMANCE GRANT GRANT AGREEMENT NUMBER E15-135 This Memorandum of Understanding (MOU), entered into this day of between the City of Kent, a Washington municipal corporation (hereinafter the "City") and the Kent Fire Department Regional Fire Authority (hereinafter the "RFA"), a Washington municipal corporation formed in accordance with Chapter 52.26 RCW. RECITALS WHEREAS, the City is an applicant for Emergency Management Performance Grant ("EMPG") funds (Catalogue of Federal Domestic Assistance-CFDA 97.042) under Public Law 113-76, as amended by Post-Katrina Emergency Management Reforms Act of 2006 (PKEMRA), as amended, (Pub. L. No. 109-295) (Title 6 U.S.0 Chapter 762, Section 662, Public Law 109-295, Title 6 U.S.C. 762, as amended by Earthquake Hazards Reduction Act of 1977, Public Law 95-124, Title 42 U.S.0 7701, as amended by Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 93- 288, Title 42 U.S.0 5121, as amended by National Flood Insurance Act of 1968, Public Law 90-448, Title 42 U.S.0 4001; and WHEREAS, the City desires to contract with the RFA for the performance of certain eligible activities described within this MOU; and WHEREAS, it is appropriate and mutually desirable that the RFA be designated by the City to undertake the aforementioned eligible activities, so long as the requirements of the EMPG award, Homeland Security regulations, and state and local laws are adhered to, as provided for herein; and WHEREAS, the purpose of this MOU is to provide for cooperation between the City and the RFA, as the parties to this MOU, in the provision of such eligible activities; and WHEREAS, the parties are authorized and empowered to enter into this MOU pursuant to the OMB Circular A-133, Chapter 39.34 RCW, and/or by the Constitution and the enabling laws of the State of Washington; NOW THEREFORE, For and in consideration of the terms and conditions provided in this MOU, the parties mutually covenant and agree as follows: 35 INDEX To MOU PART I - GENERAL CONDITIONS.............................................................................................................. 1. Scope Of MOU..........................................................................................................................1 2. Scope Of Project.......................................................................................................................1 3. Purpose And Primary Objective .................................................................................................. 1 4. Commencement And Termination Of MOU ...................................................................................2 5. Administration .........................................................................................................................2 6. Compensation And Method Of Payment.......................................................................................2 7. Eligible Costs ...........................................................................................................................3 8. Operating Budget.....................................................................................................................3 9. Amendments ...........................................................................................................................3 10. Assignment And Subcontracting.................................................................................................3 11. Hold Harmless And Indemnification.............................................................................................4 12. Project Close-Out .....................................................................................................................4 13. Insurance................................................................................................................................4 14. Conflict Of Interest...................................................................................................................5 15. Suspension And Termination Of MOU ..........................................................................................5 PART II - FEDERAL, STATE, AND LOCAL PROGRAM REQUIREMENTS............................................................. 1. Nondiscrimination.....................................................................................................................6 2. Procurement Standards.............................................................................................................8 3. Uniform Administrative Requirements And Cost Principles.. ...........................................................8 4. Labor Standards.......................................................................................................................8 5. Data Universal Numbering System..............................................................................................9 6. Administrative And/Or Financial Requirements.............................................................................9 7. Reimbursement/Invoicing Procedures .........................................................................................9 8. Reporting Requirements............................................................................................................9 9. Equipment Management........................................................................................................... 9 10. Environmental and Historical Preservation...................................................................................9 11. Procurement............................................................................................................................9 12. NIMS Compliancy ................................................................................................................... 10 13. EMPG Program Specific Requirements....................................................................................... 10 14. General Terms And Conditions................................................................................................ 10 15. EMPG Work Plan..................................................................................................................... 10 16. Public Information .................................................................................................................. 10 17. Other Federal And State Requirements ..................................................................................... 10 18. Local Requirements ................................................................................................................ 11 PART III - MONITORING AND REPORTING REQUIREMENTS......................................................................... 1. Monitoring............................................................................................................................. 11 2. Fiscal Reporting Responsibilities..............................................................................................................................11 3. Audits................................................................................................................................... 11 PART IV - RECORDKEEPING REQUIREMENTS............................................................................................ 1. Program Records and Inspections............................................................................................. 12 2. Financial Records ................................................................................................................... 13 3. Records Of Program Operations, Management And Evaluation...................................................... 13 4. Procurement Records.............................................................................................................. 13 5. Nondiscrimination And Equal-Opportunity Records ..................................................................... 13 6. Conflict Of Interest................................................................................................................. 14 7. Verification Of Subcontractor's Eligibility.................................................................................... 14 36 PART I - GENERAL CONDITIONS 1. SCOPE OF MOU The agreement between the parties shall consist of this MOU and its signature page; the recitals page; the general conditions and any special conditions; the federal, state and local program requirements; the monitoring and reporting requirements; the recordkeeping requirements; each and every project exhibit, appendix, and attachment incorporated into the MOU; all matters and laws incorporated by reference herein; and any written amendments made according to the general conditions. This MOU supersedes any and all former agreements applicable to projects attached as Exhibits to this MOU. 2. SCOPE OF PROJECT The RFA shall use the funds provided herein only to perform the activities authorized by this MOU and as set forth in the Washington State Military Department Grant Agreement No. E15-135 (Grant Agreement), which is attached as Exhibit A and incorporated by this reference. This MOU may be amended in writing from time to time, in accordance with the general conditions, for the purpose of adding new projects, amending the scope of work, or for any other lawful purpose. 3. PURPOSE AND PRIMARY OBJECTIVE The purpose of the Grant Agreement (Exhibit A) is to provide U.S. Department of Homeland Security (DHS) Emergency Management Performance Grant (EMPG) funds to local jurisdictions and tribes with emergency management programs to support and enhance those programs as described in the 14EMPG Work Plan (Exhibit C of the Grant Agreement). Pursuant to Section III Purpose of the Interlocal Agreement for the Division of Services Resulting from the Formation of the Kent Fire Department Regional Fire Authority, the RFA performs the following services on behalf of the City: Fire Prevention, Emergency Management, and Fire Investigation Services. Further, Exhibit C Office of Emergency Management of the Interlocal Agreement requires the RFA to apply for and manage all disaster recovery grants, Emergency Performance Grants, and other public assistance grants. Emergency Management Performance Grants (EMPG) can only be awarded to cities, counties and tribes with emergency management programs. Therefore, the RFA is not eligible to receive Emergency Performance Grants (EMPG) directly from the Washington State Military Department. Because the RFA administers the City's emergency management program, the City is providing the EMPG funds received pursuant to the Grant Agreement to the RFA. 37 4. COMMENCEMENT AND TERMINATION OF MOU This MOU will commence on June 1, 20141 and will terminate on August 31, 2015, unless otherwise extended in writing through an amendment to the Grant Agreement. No work on a project funded by this MOU shall occur prior to June 1, 2014. The RFA shall take all necessary precautions and shall be responsible for the safety of its employees, agents, and subcontractors in the performance of the contract work and shall utilize all protection necessary for that purpose. Costs incurred prior to start date of this MOU will not be reimbursed. This MOU is contingent upon the availability of funds to be allocated through federal appropriations. Therefore, should funds to support RFA's services not be made available through anticipated federal appropriations, this MOU shall immediately terminate without risk or liability to the City and without obligation to disburse funds or to reimburse RFA any funds expended in anticipation of funding availability. All work shall be done at RFA's own risk, and RFA shall be responsible for all losses associated with services provided before the City issues its written notice to proceed. All acts consistent with the authority of the MOU and prior to the date of the MOU's execution are hereby ratified and affirmed, and the terms of this MOU shall be deemed to have applied. S. ADMINISTRATION A. The RFA shall appoint a liaison person who shall be responsible for overall administration of EMPG funded project(s) and coordination with the City's Finance Department. The person appointed shall be designated in Exhibit B, which is attached and incorporated by this reference. The RFA shall also designate one or more representatives who shall be authorized to submit the A- 19 Invoice Form and completed Reimbursement Spreadsheet (in the format provided by the Washington State Military Department) detailing the expenditures for which reimbursement is sought, which are established through the Grant Agreement. B. The RFA shall provide ten (10) days written notice to the City of any changes in program personnel as established through this MOU and Article I Key Personnel of the Grant Agreement. 6. COMPENSATION AND METHOD OF PAYMENT A. The City shall reimburse the RFA only for eligible costs allowed pursuant to, and in an amount not to exceed the amount specified, in the Grant Agreement, and according to the procedures developed by the City of Kent. Reimbursement shall be based on the A-19 Invoice Form, and completed Reimbursement Any work performed in conformance with this MOU prior to the date of signing, but no earlier than June 1, 2014, is hereby ratified. 38 Spreadsheet, which shall be submitted to the Military Department by the RFA's authorized representative. B. The RFA shall submit an A-19 Invoice Form and completed reimbursement no later than the due dates listed within the Milestone Timeline (Exhibit D of the Grant Agreement), but not more frequently than monthly. The City reserves the right to demand and recover reimbursements made for ineligible costs. 7. ELIGIBLE COSTS A. All costs incurred must be reasonable, necessary and of a nature which clearly relate to the specific purposes and end product of the Grant Agreement under which the services are being performed. Care must be taken by all concerned in incurring costs to assure that expenditures conform to these general standards and the following criteria for eligibility of costs. B. To be eligible for reimbursement, costs must: (1) Conform to the terms and conditions of the Grant Agreement; (2) Be necessary and reasonable for proper and efficient execution of the contractual requirements and in accordance with an approved budget; (3) Be no more liberal than policies, procedures, and practices applied uniformly to other activities of the RFA; (4) Be accorded consistent treatment through application of account policy and procedures approved and/or prescribed herein; (5) Not be allowable under or included as costs of any other federal, state, local or other RFA-financed programs in either prior or current periods; (6) Be net of all applicable credits such as purchase discounts, rebates or allowances, sales of publication or materials, or other income or refunds; and (7) Be fully documented. S. OPERATING BUDGET The RFA shall apply the funds received from the City under this MOU in accordance with Exhibit E Budget Sheet of the Grant Agreement. 9. AMENDMENTS Either party may request modifications in the scope of permissible activities, terms, or conditions of this MOU. Proposed modifications which are mutually agreed upon shall be incorporated by a written amendment to this MOU. 10. ASSIGNMENT AND SUBCONTRACTING A. The RFA shall not assign any portion of this MOU without the written consent of the City, and it is further agreed that said consent must be sought by the RFA not less than fifteen (15) days prior to the date of any proposed assignment. 39 B. Any work or services assigned or subcontracted hereunder shall be subject to each provision of this MOU and proper bidding procedures to the extent herein. 11. HOLD HARMLESS AND INDEMNIFICATION A. The RFA agrees that it is financially responsible and liable to the City for any audit exception or other financial loss to the City which occurs due to the RFA's negligence or failure to comply with the terms of this MOU unless such audit exception or other financial loss is the result of the City's negligence or failure to comply with the terms of this MOU in which case the City shall be financially responsible for such audit exception or other financial loss. B. The RFA further agrees to defend, indemnify, and hold the City, its elected and appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from and against all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor of any person(s), including RFA's employees or third parties on account of personal injuries, death, or damage to property arising out of services performed or omissions of services or in any way resulting from the acts or omissions of the RFA and/or its agents, employees, volunteers, subcontractors, or representatives under this MOU. C. The City further agrees to defend, indemnify, and hold the RFA, its elected and appointed officials, agents, and employees, while acting within the scope of their duties as such, harmless from and against all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, arising in favor of any person(s), including City's employees or third parties on account of personal injuries, death, or damage to property arising out of services performed or omissions of services or in any way resulting from the acts or omissions of the City and/or its agents, employees, volunteers, subcontractors, or representatives under this MOU. 12. PROJECT CLOSE-OUT The RFA acknowledges and agrees that the amounts set forth in the Grant Agreement shall be used only to reimburse the RFA for eligible costs incurred by the RFA during the period set forth in said Grant Agreement and that upon expiration of such period, or upon earlier termination pursuant to this MOU, the RFA shall have no interest in any said amount which is not required to reimburse the Agency for eligible costs incurred before such expiration or earlier termination. 13. INSURANCE The RFA shall maintain insurance in the types and amounts set forth in Exhibit C, which is attached and incorporated by this reference. 40 14. CONFLICT OF INTEREST A. Interest of Officers, Employees, or Agents - No officer, employee, or agent of the City or RFA who exercises any functions or responsibilities in connection with the planning and carrying out of the City EMPG program or the RFA's project, or any other person who exercises any functions or responsibilities in connection with the City's Finance Department, shall have any personal financial interest, direct or indirect, in the MOU, and the City and RFA shall take appropriate steps to assure compliance. B. Interest of Subcontractor and Their Employees - The RFA agrees that it will incorporate into every contract or subcontract, which is required to be in writing and made pursuant to this MOU, the following provisions: The Contractor covenants that no person who presently exercises any functions or responsibilities in connection with the City EMPG program has any personal financial interest, direct or indirect, in this MOU. The Contractor further covenants that he/she presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of his/her services hereunder. The Contractor further covenants that in the performance of this MOU, no person having any conflict of interest shall be employed. Any actual or potential conflict of interest on the part of the Contractor or his/her employees must be disclosed to the RFA and the City. 15. SUSPENSION AND TERMINATION OF MOU A. Suspension for Failure to Perform - In the event of a failure to comply with any terms or conditions of this MOU or failure to provide in any manner the activities or other performance as agreed to herein, the City reserves the right to withhold all or any part of payment, suspend all or any part of the MOU, or prohibit the RFA from incurring additional obligations of funds until the City is satisfied that corrective action has been taken or completed. The option to withhold funds is, in addition to and not in lieu of, the City's right to terminate the MOU pursuant to Paragraph (B) of this Section 15. B. Termination of MOU by the City - This MOU is subject to termination upon thirty (30) days written notice by the City to the Agency in the event that: (1) The RFA mismanages or makes improper or unlawful use of EMPG funds; (2) The RFA fails to comply with any term or condition expressed herein or any applicable federal, state, or local regulations or ordinances; (3) EMPG funds no longer become available from the federal government or through the City; (4) The RFA fails to carry out activities required by this MOU; or 41 (5) The RFA fails to submit reports or submits incomplete or inaccurate reports in any material respect. C. Termination of MOU by the RFA - This MOU is subject to termination upon thirty (30) days written notice by the RFA to the City in the event that: (1) The City fails in its commitment under this MOU to provide funding for services rendered, as herein provided; or (2) EMPG funds no longer become available from the federal government or through the City. D. Unless otherwise terminated pursuant to Paragraphs (B) and (C) of this Section 15, this MOU shall terminate on the termination date specified in Part 1 Section 1 of the MOU and shall be subject to extension only by mutual agreement and amendment in accordance with Part I, Section 9 of this MOU. E. Upon termination of this MOU, any unexpended balance of Grant Agreement funds shall remain with the City. F. In the event termination occurs under Paragraph (B) of this Section 15, the RFA shall return to the City all funds that were expended in violation of the terms of this MOU, if any, including, but not limited to, any unexpended EMPG funds distributed to the RFA under this MOU, any accounts receivable, or any assets or interests therein of any type and in any form acquired, leased, or rehabilitated with EMPG monies. PART II - FEDERAL, STATE, AND LOCAL PROGRAM REQUIREMENTS 1. NONDISCRIMINATION A. General — The RFA shall comply with all federal, state, and local laws, regulations, and policies. No person shall, on the grounds of age, race, creed, color, sex, sexual orientation, religion, national origin, marital status, honorably discharged veteran or military status, or disability (physical, mental, or sensory) be denied the benefits of, or otherwise be subjected to discrimination under any project, program, or activity, funded, in whole or in part, under the Grant Agreement. B. Specific Discriminatory Actions Prohibited: (1) The RFA shall not, under any program or activity to which this MOU may apply, directly or through contractual or other arrangements, on the grounds of age, sex, marital status, race, creed, religion, color, national origin, or the presence of any sensory, mental, or physical handicap: i. Deny any person facilities, services, financial aid, or other benefits provided under the program or activity. 42 ii. Provide any person with facilities, services, financial aid, or other benefits which are different, or are provided in a form different, from that provided to others under the program or activity. iii. Subject any person to segregated or separate treatment in any facility or in any matter or process related to receipt of any service or benefit under the program or activity. iv. Restrict in any way access to or enjoyment of any advantage or privilege enjoyed by others in connection with facilities, services, financial aid, or other benefits under the program or activity. v. Treat any person differently from others in determining whether the person satisfies any admission, enrollment, eligibility, membership, or other requirement or condition which individuals must meet in order to be provided facilities, services, or other benefits provided under the program or activity. vi. Deny any person any opportunity to participate in a program or activity as an employee. (2) The RFA shall not utilize criteria or methods of administration which have the effect of subjecting individuals to unlawful discrimination on the basis of age, race, creed, color, sex, sexual orientation, religion, national origin, marital status, honorably discharged veteran or military status, or disability (physical, mental, or sensory). C. Employment: (1) In all solicitations under this MOU, the RFA shall state that all qualified applicants will be considered for employment. The words "equal opportunity employer" in advertisements shall constitute compliance with this section. (2) The RFA shall not unlawfully discriminate against any employee or applicant for employment in connection with the MOU because of age, sex, marital status, race, creed, religion, color, national origin, or the presence of any sensory, mental, or physical handicap, except when there is a bona fide occupational limitation. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training (Chapter 49.46 RCW, Executive Order 11246, as amended). (3) The RFA shall not unlawfully discriminate against any employee or applicant for employment in connection with the MOU because of age, race, creed, color, sex, sexual orientation, religion, national origin, marital status, honorably discharged veteran or military status, or disability (physical, mental, or sensory). D. Contractors and Suppliers: 43 (1) No contractor, subcontractor, union, or vendor engaged in any activity under this MOU shall engage in any unlawful discrimination as defined in any federal, state, or local law. (2) EMPG funds shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or sub-recipient during any period of debarment, suspension, or placement in ineligibility status. 2 CFR Part 180 and Federal Executive Orders 12549 and 12689. E. Notice: The RFA shall include the provisions of the appropriate subsections A, B, C, D, and E of this Part II, Section 1 in every contract or purchase order for goods and services under this MOU, and shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding, a notice advising the said labor union or worker's representative of the commitments made in these subsections. 2. PROCUREMENT STANDARDS In awarding contracts pursuant to this MOU, the RFA shall comply with all applicable requirements of local and state law for awarding contracts, including but not limited to procedures for competitive bidding, contractor's bonds, and retained percentages (Ch. 60.28 RCW, Ch. 39.12 RCW, and Ch. 39.04 RCW). In addition, the RFA shall comply with the requirements of 44 CFR Part 13 Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Where federal standards differ from local or state standards, the stricter standards shall apply. 3. UNIFORM ADMINISTRATIVE REQUIREMENTS AND COST PRINCIPLES The RFA shall comply with the policies, guidelines, and requirements of OMB Circular Nos. A-102, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (also known as "A-102 Common Rule"and are also located within Title 44 CFR Part 13), and OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments relocated to 2 CFR Part 225. 4. LABOR STANDARDS A. The RFA shall require that project construction contractors and subcontractors for contracts exceeding $2,000 awarded by the RFA pay their laborers and mechanics at wage rates in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a through 276a-7), as supplemented by Department of Labor regulations (29 CFR Part 5). In addition to complying with these federal labor standards, the RFA shall further require that all project construction contractors comply with all applicable state and local public works bidding and contracting regulations, specifically including, without limitation, the prevailing wage 44 provisions set forth in Ch. 39.12 RCW and all regulations adopted by the State of Washington Department of Labor and Industries. B. The RFA shall require that project construction contractors and subcontractors comply with Federal Labor Standards Provisions and the Davis-Bacon wage determinations. For construction contracts, a copy of the Federal Labor Standards Provisions and the current Davis-Bacon wage determinations must be included in all construction bid specs and/or contracts over $2,000. S. DATA UNIVERSAL NUMBERING SYSTEM Pursuant to 2 C.F.R. §25.100(a), the City is required to establish a Dun and Bradstreet (D & B) Data Universal Numbering System (DUNS) as a universal identifier in order to receive federal financial assistance. In addition, programs or subrecipients receiving subawards from the City shall establish a DUNS. 2 C.F.R. § 25.200(c)(1). The RFA shall provide its DUNS to the City. 6. ADMINISTRATIVE AND/OR FINANCIAL REQUIREMENTS The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement. 7. REIMBURSEMENT/INVOICING PROCEDURES The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement and Part I Section 6 Compensation And Method of Payment of the MOU. S. REPORTING REQUIREMENTS The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement and Part I Section 6 Compensation And Method of Payment of the MOU. 9. EQUIPMENT MANAGEMENT The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement. 10. ENVIRONMENTAL AND HISTORICAL PRESERVATION The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement. 11. PROCUREMENT The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement. 45 12. NIMS COMPLIANCY The RFA will comply with all National Incident Management System (NIMS) requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement. 13. EMPG PROGRAM SPECIFIC REQUIREMENTS The RFA will comply with all requirements as reflected in Article II Administrative, Financial, And Programmatic Requirements of the Grant Agreement. 14. GENERAL TERMS AND CONDITIONS The RFA will comply with all General Terms and Conditions established through Exhibit B General Terms and Conditions of the Grant Agreement. 15. EMPG WORK PLAN The RFA will administer the EMPG award in accordance with the Work Plan established through Exhibit C 14EMPG Work Plan of the Grant Agreement. 16. PUBLIC INFORMATION A. In all news releases and other public notices related to projects funded under this MOU, the RFA shall include information identifying the source of funds as the City of Kent EMPG program. B. Pursuant to Exhibit B Part A.23 of the Grant Agreement, the RFA agrees to submit to the Washington Military Department prior to issuance all advertising and publicity matters relating to the Grant Agreement wherein the Department's name is mentioned or language used from which the connection of the Department's name may, in the Department's judgment, be inferred or implied. The RFA agrees not to publish or use such advertising and publicity matters without the prior written consent of the Department. C. The RFA acknowledges that this MOU and any other information provided by it to the City and/or relevant to the project(s) described in the Exhibit(s), are subject to the Washington State Public Disclosure Act, Chapter 42.56 RCW, except to the extent specifically exempted from disclosure therein. 17. OTHER FEDERAL AND STATE REQUIREMENTS The absence of mention in this MOU of any other federal or state requirements, which apply to the award and expenditure of federal funds made available by this MOU, is not intended to indicate that those federal or state requirements are not applicable to RFA activities. The RFA shall comply with all other federal and state requirements relating to the expenditure of federal funds, including but not limited to the Hatch Act (5 U.S.C. § 15) regarding political activities and the Architectural Barrier Act of 1968 (42 U.S.C. § 4151, et seq.). 46 18. LOCAL REQUIREMENTS The activities performed under this MOU are for the purposes of serving residents of the RFA service area and the RFA shall, to the extent reasonably possible, not use said funds to provide services outside the RFA service area, or for any other purpose, except as specifically authorized by this MOU. III - MONITORING AND REPORTING REQUIREMENTS 1. MONITORING Article II Administrative, Financial, And Programmatic Requirements Part 6 Sub- Grantee Monitoring of the Grant Agreement reflects that the Military Department will monitor the activities of the Sub-grantee from award to close-out. The RFA understands and agrees that it will be monitored by the City and the Military Department from time to time to assure compliance with all terms and conditions of this MOU and all applicable local, state, and federal laws, regulations, and promulgated policies. Monitoring by the City under this MOU shall include, but not be limited to on-site inspections by City staff. The City reserves the right to contract with another local government or other contracting party to perform this service. The RFA shall provide to the City a copy of any Military Department monitoring report no later than thirty (30) days after the issuance of the report to the RFA. The RFA shall provide to the City its response and corrective action plan for all areas of concern contained in the monitoring report. 2. FISCAL REPORTING RESPONSIBILITIES The RFA shall provide fiscal statements or reports as may be required from time to time by the City, which statements or reports, or both, must indicate the status of all accounts and funds being used to perform under this MOU. The RFA shall maintain proper documentation and records of all expenditures incurred pursuant to the terms of this MOU in a manner as will facilitate auditing by the Department of Homeland Security, the Washington Military Department, and/or the City. 3. AUDITS A. If the RFA expends a total of $500,000 or more in federal financial assistance and has received federal financial assistance from the City during its fiscal year, it shall have an independent audit conducted of its financial statement and conditions, which shall comply with the requirements of generally accepted auditing standards (GAAS); General Accounting Office (GAO's) Standards for Audits of Governmental Organizations, Programs, Activities, and Functions; and OMB Circular A-133, as amended, and as applicable. Such audits are to be performed by the Washington State Auditor's Office (SAO). 47 The RFA shall provide a copy of the audit report to the City no later than thirty (30) days after the audit's completion or six (6) months subsequent to the end of the RFA's fiscal year, whichever date is sooner. The RFA shall provide to the City its response and corrective action plan for all findings and reportable conditions contained in its audit. When reference is made in its audit to a Management Letter or other correspondence made by the auditor, the RFA shall provide copies of those communications and the RFA's response and corrective actions plan. B. The Catalog of Federal Domestic Assistance (CFDA) number for the EMPG program is 97.042. PART IV — RECORDKEEPING REQUIREMENTS 1. PROGRAM RECORDS AND INSPECTIONS The RFA shall make, maintain, and preserve books and records, of whatever form, detailing all EMPG-related expenditures and costs incurred by the RFA. All such books and records shall be made available to representatives of the City or the Military Department, or both, for formal inspection and, where necessary, copying. Intentional noncompliance with this provision shall constitute a material breach of this MOU. Throughout the term of this MOU, the RFA shall establish and maintain current the records described in this Section. These records shall conform to the requirements and specifications of their individual source authorities, which are cited herein. Be advised that the listing in this Section is intended only to assist the RFA in identifying the required records and their respective authorities, and is not all inclusive. A. Time for Retention of Records - Except where otherwise specifically provided, all records as of the end of the term of this MOU shall be kept in an accessible file for at least six (6) years following final payment and closure of the grant under the Grant Agreement. B. Contract and Amendments - A complete copy of this MOU and all amendments thereto and notices there under. C. Records of City Approvals - Copies of all requests for amendments or revisions to this MOU and the City's subsequent approval or denial of such requests as are required under this MOU. D. Subcontracts and Agreements - Complete copies of all contracts, subcontracts, and agreements with third parties into which the RFA enters in the performance under this MOU; and all correspondence, reports, and other documentation pertaining to such contracts, subcontracts, and agreements. E. Additional Contract Requirements - The RFA shall submit to the City a copy of the most recent independent financial audit and a current list of the RFA's board of directors. 48 2. FINANCIAL RECORDS The RFA shall maintain all accounting records that accurately record the source and application of all funds; and recording funds received under this MOU, all other receipts, assets, authorizations and appropriations, obligations, disbursements and unobligated balances. The records must: A. Permit comparison of actual outlays with budgeted amounts; B. Permit reporting of financial data on the accrual basis; C. Be supported by source documentation; D. Be independently audited usually annually, but not less frequently than every two years. 3. RECORDS OF PROGRAM OPERATIONS, MANAGEMENT AND EVALUATION The RFA shall maintain all records of: A. Operating policies and procedures; B. Employee qualifications, training, and evaluation; C. Principal operations data: work units completed; clients served, classified by client and service characteristics; staff hours utilized; etc. D. Self-evaluation of services, programs, and employment practices for compliance with 504 and ADA requirements. 4. PROCUREMENT RECORDS The RFA shall maintain all records of: A. RFA's adopted code of conduct governing officers' and employees' actions in contracting and purchasing; B. RFA's standard operating procedures for authorizing and executing purchases and contract procurements of various sizes and types. C. RFA's individual purchases or contracts over $10,000 as required by 44 CFR Part 13, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. D. RFA's procurement procedures utilized and the bases for supplier selection/contract award, for individual purchases or contracts over $10,000. S. NONDISCRIMINATION AND EQUAL-OPPORTUNITY RECORDS The RFA shall maintain: A. A tabulation of all RFA employees classified by race, position, and salary in the format of the U.S. Equal Employment Opportunity Commission Form EEO-4. B. Data identical to that required under A. and B. above for any subcontractor or agent employed in the performance under this MOU. 49 C. Documentation of all substantive actions taken to assure that no prohibited discrimination occurs in the conduct of any of the RFA's operations. D. Documentation of all actions taken to make minority residents aware of the RFA's services and provide them with equal access to benefits. E. Record of the racial classification and gender of the majority owners of each private for-profit business with which the RFA contracts with any funds provided under this MOU. 6. CONFLICT OF INTEREST A. The RFA shall maintain records documenting that all RFA board members, officers, employees and consultants have been informed of the conflict of interest provisions of Exhibit B Part A.9 of the Grant Agreement and have acknowledged understanding those provisions. B. The RFA shall maintain a complete record of all requests for exceptions submitted under the Grant Agreement. 7. VERIFICATION OF SUBCONTRACTOR'S ELIGIBILITY The RFA shall maintain records documenting that the RFA, all subcontractors, and consultants have been determined not to be currently debarred, suspended, denied participation or declared ineligible to participate in federal government funded programs. 50 KENT FIRE DEPARTMENT REGIONAL FIRE CITY OF KENT: AUTHORITY: Sian in blue or black ink only Print Name: Suzette Cooke Print Name: Jim Schneider Title: Mayor Title: Fire Chief DATE: DATE: APPROVED AS TO FORM: Kent Law Department 51 FINANCE 440 Aaron BeMiller, Director Phone: 253-856-5260 N.147KEN T Fax: 253-856-6255 WASHING-ON Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: February 3, 2015 TO: Kent City Council Operations Committee SUBJECT: Budget Certification for Annexation Sales Tax Credit-Resolution MOTION: Recommend Council approve the resolution certifying the Panther Lake annexation sales tax credit of $4,206,431 for the period July 1, 2015 through June 30, 2016. SUMMARY: The City is required to certify to the State of Washington before March 1't of each year, the amount needed from the annexation sales tax credit to provide services in the annexed area. The Finance Department has calculated the costs and revenues within the Panther Lake annexation area and has determined a gap between revenues generated and expenditures used to provide services of $4,206,431 for July 1, 2015 through June 30, 2016. BUDGET IMPACT: The budget for the Panther Lake annexation area for the State's fiscal year 2015 is anticipated to be $12,225,728 in expenditures to provide City services to those residents, while we anticipate revenues of $8,019,297 from property taxes, sales taxes and other sources. The net of the revenues and costs produces a deficit of $4,206,431 which is the amount being certified as the amount of annexation sales tax credit we are requesting from the State. The certification resolution is attached. 52 CITY OF KENT PANTHER LAKE ANNEXATION CERTIFICATE JULY 1, 2015 THROUGH JUNE 30, 2016 Estimated Description Revenues Property Taxes 3,147,252 Sales and Use Tax 180,679 Sales and Use Tax - Criminal Justice/MVET 613,902 Gambling Taxes 234,242 Utility Taxes 2,971,267 Liquor - Excise Tax & Board Profits 312,775 Fuel Tax 559,180 8,019,297 Maximum Sales Tax Credit 4,206,431 12,225,728 Estimated Department Expenditures City Council 77,913 Mayor's Office & City Clerk 553,735 Municipal Court 639,846 Employee Services 199,108 Law 314,650 Finance 482,615 Information Technology 343,563 Police 5,294,156 Fire Services 261,819 Economic &Community Development 663,074 Public Works 1,583,348 Parks, Recreation & Community Services 1,811,901 12,225,728 Revenues Over/ (Under) Expenditures - 53 RESOLUTION NO. A RESOLUTION of the City Council of the City of Kent, Washington, determining a new threshold amount for the sales and use tax authorized by RCW 82.14.415 and codified in Chapter 3.27 of the Kent City Code, relating to the cost of providing municipal services to the Panther Lake Annexation Area for the 2015 fiscal year, and authorizing the Finance Director to certify the threshold amount to the Washington State Department of Revenue. RECITALS A. RCW 82.14.415 authorizes the City to impose a sales and use tax as a credit against state retail sales and use taxes collected under Chapters 82.08 and 82.12 RCW to assist the City in providing municipal services to newly annexed areas. B. After providing all appropriate notice and following appropriate procedure, and following a favorable vote on the annexation proposition, the Kent City Council adopted Ordinance No. 3936 on December 8, 2009, approving the Panther Lake Annexation Area effective July 1, 2010. The population within the annexation area determined at the time of annexation was 25,458 people. 1 Tax Credit Threshold Panther Lake Annexation 54 C. On February 16, 2010, the City Council passed Ordinance No. 3947, creating Chapter 3.27 of the Kent City Code and imposing the sales and use tax at the rate of 0.2 percent. D. On February 15, 2011, the City Council adopted Resolution No. 1839 confirming the tax rate at 0.2 percent and authorizing the finance director to certify the threshold amount for the 2011 fiscal year. E. On February 7, 2012, through Resolution No. 1853, the City Council adopted a new threshold amount for the 2012 fiscal year and authorized the finance director to certify the same. F. On February 19, 2013, through Resolution No. 1871, the City Council adopted a new threshold amount for the 2013 fiscal year and authorized the finance director to certify the same. G. On February 4, 2014, through Resolution No. 1881, the City Council adopted a new threshold amount for the 2014 fiscal year and authorized the finance director to certify the same. H. With this Resolution, the City authorizes the imposition of similar annexation sales and use taxes for the 2015 fiscal year. I. The City Council of the city of Kent, Washington, finds and determines that the projected cost to provide municipal services to the Panther Lake Annexation Area for the 2015 fiscal year will be at least $12,225,728, and that this cost exceeds the projected general revenue that the City would otherwise receive from the annexation during the 2015 fiscal year, which is estimated to be $8,019,297. 2 Tax Credit Threshold Panther Lake Annexation 55 J. Pursuant to RCW 82.14.415, the city of Kent is authorized, under the circumstances of this annexation, to impose a sales and use tax for the 2015 fiscal year, which shall be collected by the State department of revenue from those persons who are taxable by the state under Chapters 82.08 and 82.12 RCW, upon the occurrence of any taxable event within the City. K. The rate of tax imposed shall be 0.2 percent, and shall be in addition to other taxes authorized by law, and the threshold amount for the 2015 fiscal year is $4,206,431. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. — Rate and Threshold Amount. The Kent City Council determines that the threshold amount for the City's projected net cost in providing municipal services to the Panther Lake Annexation Area for the 2015 fiscal year is $4,206,431. The City Council previously imposed a sales and use tax at the rate of 0.2 percent, with the passage of Ordinance No. 3947 on February 16, 2010. SECTION 2. — Implementation and certification. The Mayor of the city of Kent is authorized to implement administrative procedures as may be necessary to carry out the provisions of this resolution. The City's Finance Director is authorized to certify the amount for the 2015 fiscal year to the appropriate agencies within the State of Washington. SECTION 3. — Severabilitv. If any section, subsection, paragraph, sentence, clause or phrase of this resolution is declared unconstitutional or 3 Tax Credit Threshold Panther Lake Annexation 56 invalid for any reason, such decision shall not affect the validity of the remaining portions of this resolution. SECTION 4. — Savings. Resolution No. 1881 shall remain in full force and effect until the effective date of this resolution. SECTIONS. — Ratification. Any act consistent with the authority and prior to the effective date of this resolution is hereby ratified and affirmed. SECTION 6. — Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this resolution, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or resolution numbering and section/subsection numbering. SECTION 7. — Effective Date. This resolution shall take effect and be in force immediately upon its passage, however the imposition of the sales and use taxes for the 2015 state fiscal year authorized by this resolution shall not take effect until the commencement of that fiscal year. PASSED at a regular open public meeting by the City Council of the city of Kent, Washington, this day of 2015. CONCURRED in by the Mayor of the city of Kent this day of 2015. SUZETTE COOKE, MAYOR 4 Tax Credit Threshold Panther Lake Annexation 57 ATTEST: RONALD F. MOORE, CITY CLERK APPROVED AS TO FORM: TOM BRUBAKER, CITY ATTORNEY I hereby certify that this is a true and correct copy of Resolution No. passed by the City Council of the city of Kent, Washington, the day of 2015. RONALD F. MOORE, CITY CLERK P:\Civil\Resolution\Mnexadon Sales Tax Threshold2014.docx 5 Tax Credit Threshold Panther Lake Annexation