HomeMy WebLinkAboutCONSENT Hadlock sewer amend no 2 Department of Public Works
O Consent Agenda
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Jefferson County
Board of Commissioners
Agenda Request
To: Board of Commissioners
Josh Peters, County Administrator
From: Monte Reinders, P.E., Public Works Director/County Engineer'
Agenda Date: December 15, 2025
Subject: Accept and execute Amendment No. 2 to Agreement No. WQC_2024_JCoPWE-
00034 between the State of Washington Department of Ecology(ECY)and
Jefferson County for the Port Hadlock Phase I Wastewater Collection and
Conveyance System
Statement of Issue: Accept and execute Amendment No. 2 to Agreement No. WQC_2024_JCoPWE-00034
between the State of Washington Department of Ecology(ECY)and Jefferson County for the Port Hadlock
Phase I Wastewater Collection and Conveyance System.
Analysis/Strategic Goals/Pro's&Con's: In 2022,through the efforts of the Commissioners,Public Works,and
State and Federal legislators,the County had received the following construction funding for the Port Hadlock
Urban Growth Area- Phase I (Core Area)Wastewater Project:
• $20 million from a Washington State budget appropriation
• $2.5 million through a federal Community Projects appropriation
• $3.0 million through an additional federal Community Projects appropriation
These funds supported initial development of the Core Area sewer collection system. However, additional
funding was required to fully complete the system and to assist early users in connecting, ensuring
adequate sewer flows at system startup.
To meet this need, Public Works applied for and was awarded funding through the Ecology(ECY)Water
Quality Combined Financial Assistance Program.The resulting Ecology Water Quality Combined Financial
Assistance Agreement was executed on April 16, 2024.
Amendment No. 2 does not change the overall funding amount.
Instead, it adjusts the distribution of funds among existing tasks to address cost increases associated with
the on-site grinder pump construction contract.
Key changes include:
• Shifting funds into Task 2 (Project Construction)to cover unforeseen cost changes in the on-site
grinder pump construction contract.
Department of Public Works
0 Consent Agenda
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• Reducing allocations in Task 1 (Grant& Loan Administration) and Task 5 (Equipment&Tools)to
offset the reallocation to Task 2.
• Allowing the County to reimburse more than 5%of the change order costs associated with the
Phase 4—Stage 1 On-site Grinder Pump Installation Project, ensuring adequate coverage for cost
overruns.
Fiscal Impact/Cost Benefit Analysis: Amendment No. 2 does not change the funding package,which
includes a $1,876,603 Centennial Grant, $3,123,397 in State Revolving Fund (SRF) Forgivable Principal, and
a $1,667,000 SRF Loan,for a total funding amount of$6,667,000. The SRF Loan has an interest rate of 0.4%
for twenty years.
Recommendation: The Board is requested to accept Amendment No. 2 and authorize execution of
Amendment No.2 to Agreement No.WQC_2024 JCoPWE-00034.The Amendment No. 2 document will be
provided to the Board via DocuSign for signature.
Department Contact: Samantha Harper, P.E. Project Manager, 385-9175.
Reviewed B :
n
‘°e?,6g?
II /aS
Jo eters,County Administrator Date
CONTRACT REVIEW FORM Clear Form
(INSTRUCTIONS ARE ON THE NEXT PAGE) Pik/AMS— pi
CONTRACT WITH: State of Washington Department of Ecology Contract No: WOC-2024-JCoPWE•00034
Contract For: Pon Hadlock Phase I Wastewater Collection and Conveyance System Term: Grant/Loan 20years at 0.4%
COUNTY DEPARTMENT: Public Works
Contact Person: Samantha Harper
Contact Phone: 360-385-8175
Contact email: sharperuco.Jeferson.wa.us
AMOUNT: $6,667,000 PROCESS: Exempt from Bid Process
Revenue: 56,867,000 Cooperative Purchase
Expenditure: o _~ Competitive Sealed Bid
Matching Funds Required: N/A Small Works Roster
Sources(s) of Matching Funds N/A —Vendor List Bid
Fund# 405 RFP or RFQ
Munis Org/Obj N/A ✓ Other:Amendment No.2
APPROVAL STEPS:
STEP 1: DEPARTMENT CERTIFIES CO LIANCE WITH JCC .5..080 AND CHAPTER 42.23 RCW.
CERTIFIED: ■E N/A:El I Z/S f 2E
Signature Dafe
STEP 2: DEPARTMENT CERTIFIES THE PERSON PROPOSED FOR CONTRACTING WITH THE
COUNTY (CONTRACTOR) HAS NOT BEEN DEBARRED BY ANY FEDERAL, STATE, OR LOCAL
AGENCY.
CERTIFIED: El N/A: Ei s zs
Signature Da e
STEP 3: RISK MANAGEMENT REVIEW(will be added electronically through Laserfiche):
Electronically approved by Risk Management on 12/11/2025.
STEP 4: PROSECUTING ATTORNEY REVIEW(will be added electronically through Laserfiche):
Electronically approved as to form by PAO on 12/10/2025.
State Contract form - difficult to change.
STEP 5: DEPARTMENT MAKES REVISIONS & RESUBMITS TO RISK MANAGEMENT AND
PROSECUTING ATTORNEY(IF REQUIRED). Amendment is a draft. Once approved by the
STEP 6: CONTRACTOR SIGNS BoCC, admendment routed, via DocuSign, to
STEP 7: SUBMIT TO BOCC FOR APPROVAL PAO, PWD and BoCC for signatures
1
6.11131 DEPARTMENT OF
ECOLOGY
"WI State of Washington
AMENDMENT NO.2
TO AGREEMENT NO.WQC-2024-JCoPWE-00034
BETWEEN
THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY
AND
Jefferson County-Public Works Engineering
PURPOSE: To amend the above-referenced agreement(AGREEMENT) between the state of Washington Department
of Ecology(ECOLOGY)and Jefferson County - Public Works Engineering(RECIPIENT)for the Port Hadlock Phase I
Wastewater Collection and Conveyance System (PROJECT).
This amendment is needed to modify the budget to change task funding distributions within fund sources to cover
unanticipated cost overruns related to project construction.
1)The total eligible cost remains the same.
2)Fund source distribution totals remain the same.
3)Task funding distribution changes are as follows:
Task 1 (Grant& Loan Administration)decreases by $20,000, from$20,000 to$0.
Task 2(Project Construction)increases by $174,500, from$5,810,000 to$5,984,500.00.
Task 3 (Construction Management)remains the same: $300,000.
Task 4(Design&Construction Engineering)remains the same: $370,000.
Task 5 (Equipment&Tools)decreases by $154,500,from$167,000.00 to $12,500.00.
4)Task funding distribution changes within fund sources are as follows:
Within the Centennial Grant [EG240559], Task 2 increases by $154,500.00, from $1,409,603.00 to $1,564,103.00.
Task 3 remains $300,000. Task 5 decreases by $154,500.00,from $167,000.00 to$12,500.
Within the SRF Forgivable Principal [EF240560], Task 1 decreases by $10,000.00, from$10,000.00 to$0. Task 2
increases by $10,000.00, from $3,113,397.00 to$3,123,397.00.
Within the SRF Loan (State) [EL240561], Task 1 decreases by$10,000.00,from $10,000.000 to$0. Task 2 increases
by $10,000.00, from$1,287,000.00 to$1,297,000.00. Task 4 remains $370,000.00.
5)The Scope of Work remains the same.
6)The Project Completion Date remains the same. Based on that date, loan [EL240561] repayment will begin no later
than 12/31/2028.
IT IS MUTUALLY AGREED that the AGREEMENT is amended as follows:
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
CHANGES TO THE BUDGET
Funding Distribution EL240561
Funding Title: SRF Loan(State)
Funding Type: Loan
Funding Effective Date: 07/01/2023 Funding Expiration Date: 12/31/2027
Funding Source:
Title: CWSRF-SFY24(State)
Fund: FD0727
Type: State
Funding Source%: 100%
Description: The Clean Water Act(CWA)(33 U.S.0 1251-1387)established the State Revolving
Fund(SRF)low interest loans program(40. C.F.R. Part 31, 35 Sub Part K).
Washington State administers the program under Chapter 173-98 WAC. The portion of
this project funded with this funding distribution comes from non-federal source and
are not subject to Federal Funding Accountability and Transparency Act (FFATA)and
Single Audit Act(SAA). However,this project is subject to the federal requirements
outlined in Section 4 and 5 of agreement terms and conditions.
Approved Indirect Costs Rate: Approved State Indirect: 30%
Recipient Match%: 0%
InKind Interlocal Allowed: No
InKind Other Allowed: No
Is this Funding Distribution used to match a federal grant? No
Effective Interest Rate: 0.4% Interest Rate: 0.1% Admin Charge: 0.3%
Terms: 20 years
Project Start Date: 07/01/2023 Project Completion Date: 12/31/2027
Estimated Initiation of Operation date: 12/31/2027
Loan Security: Revenue Secure Lien Obligation of the Recipient
Final Accrued Interest: $
Final Loan Amount: $
Repayment Schedule Number: 1127
SRF Loan(State) Task Total
Grant and Loan Administration $ 0.00
Project Construction $ 1,297,000.00
Design&Construction Eng.for Grinder Pump System $ 370,000.00
Total: $ 1,667,000.00
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
CHANGES TO THE BUDGET
Funding Distribution EG240559
Funding Title: Centennial Grant
Funding Type: Grant
Funding Effective Date: 07/01/2023 Funding Expiration Date: 12/31/2027
Funding Source:
Title: Centennial-SFY24
Fund: FD023N
Type: State
Funding Source%: 100%
Description: The Centennial Clean Water Program provides grants for nonpoint source pollution
control activity projects and wastewater projects.
Approved Indirect Costs Rate: Approved State Indirect: 30%
Recipient Match%: 0%
InKind Interlocal Allowed: No
InKind Other Allowed: No
Is this Funding Distribution used to match a federal grant? No
Centennial Grant Task Total
Project Construction $ 1,564,103.00
Construction Management $ 300,000.00
Equipment& Tool Purchase $ 12,500.00
Total: $ 1,876,603.00
CHANGES TO THE BUDGET
Funding Distribution EF240560
Funding Title: SRF Forgivable Principal
Funding Type: Forgivable Loan
Funding Effective Date: 07/01/2023 Funding Expiration Date: 12/31/2027
Funding Source:
Title: CWSRF-SFY24(State)
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
Fund: FD0727
Type: State
Funding Source%: 100%
Description: The Clean Water Act(CWA)(33 U.S.0 1251-1387)established the State Revolving
Fund(SRF)low interest loans program(40. C.F.R. Part 31, 35 Sub Part K).
Washington State administers the program under Chapter 173-98 WAC. The portion of
this project funded with this funding distribution comes from non-federal source and
are not subject to Federal Funding Accountability and Transparency Act (FFATA)and
Single Audit Act(SAA). However, this project is subject to the federal requirements
outlined in Section 4 and 5 of agreement terms and conditions.
Approved Indirect Costs Rate: Approved State Indirect: 30%
Recipient Match%: 0%
InKind Interlocal Allowed: No
InKind Other Allowed: No
Is this Funding Distribution used to match a federal grant? No
SRF Forgivable Principal Task Total
Grant and Loan Administration $ 0.00
Project Construction $ 3,123,397.00
Total: $ 3,123,397.00
CHANGES TO SCOPE OF WORK
Task Number: 1 Task Cost: $0.00
Task Title: Grant and Loan Administration
Task-Deseriptieni
A. The RECIPIENT shall carry out all work necessary to meet ECOLOGY grant or loan administration requirements.
Responsibilities include, but are not limited to: Maintenance of project records; submittal of requests for
reimbursement and corresponding backup documentation; progress reports; and the EAGL(Ecology Administration of
Grants and Loans)recipient closeout report(including photos, if applicable). In the event that the RECIPIENT elects to
use a contractor to complete project elements, the RECIPIENT shall retain responsibility for the oversight and
management of this funding agreement
B. The RECIPIENT shall keep documentation that demonstrates the project is in compliance with applicable
procurement,contracting, and interlocal agreement requirements; permitting requirements, including application for,
receipt of, and compliance with all required permits, licenses,easements, or property rights necessary for the project;
and submittal of required performance items. This documentation shall be available upon request.
C.The RECIPIENT shall maintain effective communication with ECOLOGY and maintain up-to-date staff contact
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
information in the EAGL system. The RECIPIENT shall carry out this project in accordance with any completion dates
outlined in this agreement.
Task Goal Statement:
Properly managed and fully documented project that meets ECOLOGY's grant or loan administrative requirements.
Task Expected Outcome:
* Timely and complete submittal of requests for reimbursement, quarterly progress reports, Recipient Closeout Report,
and two-page outcome summary report.
* Properly maintained project documentation.
Deliverables
Number Description Due Date
1.1 Progress Reports that include descriptions of work accomplished,
project challenges or changes in the project schedule. Submitted at
least quarterly.
1.2 Recipient Closeout Report(EAGL Form)
CHANGES TO SCOPE OF WORK
Task Number: 2 Task Cost: $5,984,500.00
Task Title: Project Construction
Task Description:
A. The RECIPIENT will execute a contract with a contractor selected in compliance with state law.The RECIPIENT
will include ECOLOGY's specification insert in the contract documents. The RECIPIENT will submit Bid Tabs,the
Notice of Award, and a copy of the executed contract before ECOLOGY will provide reimbursement for work
performed under this task.
B. The RECIPIENT will complete the construction in accordance with the approved Plans and Specifications. The
construction project will include:
1. Installation of low-pressure collection and conveyance system, located in public rights of way and easements
including maintenance cleanouts, appurtenances, laterals and site restoration.
2. Installation of individual grinder pumps,at various locations within Phase 1 "core area." This includes connections
from building to from building drain to the low-pressure sewer collection system, located within the public rights-of
way and easements
3. Decommissioning existing septic systems.
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
C. As a condition of receiving this funding,the RECIPIENT will conduct an Investment Grade Efficiency Audit
(IGEA).The RECIPIENT will review their energy use looking for cost-effective energy savings. The recipient may
also submit documentation of an energy efficiency review conducted within the last 5 years. In lieu of preparing a full
IGEA,the Recipient may also provide a signed letter memorandum indicating"no obtainable energy savings" if the
project design, includes only minimal energy use(maintenance lighting only), or no new energy use(an example being
a"Pipes and Pavement only"project). A preliminary IGEA indicating"no obtainable energy savings"can also be used
to satisfy this requirement.
D. The RECIPIENT will conduct a pre-construction conference and will invite ECOLOGY staff to the meeting.
E. As a condition of receiving this funding, the RECIPIENT will provide ECOLOGY with a plan for increasing user
rates necessary to support this loan. This plan will be provided within 180 days of signing the loan agreement. The
plan will include the total revenue requirement and the user rates necessary for the RECIPIENT to operate and
maintain the funded utility,to establish reserves to pay for equipment replacement, and to pay debt service. The plan
will identify a schedule of rate increases necessary to achieve the total revenue requirement by the estimated date of
loan repayment.
F. The RECIPIENT will negotiate all change orders to the construction contract necessary for successful completion
of the project. The RECIPIENT will submit the change orders to ECOLOGY for approval. Change orders that are a
significant deviation from the approved plans/specifications must be submitted for approval,prior to execution. A
significant deviation shall be as defined in the Water Quality Program Orange Book, section G1-4.2.6 and mean a
change in the selected treatment process,facility size, design criteria,or performance standards that result in changes in
expected facility performance or environmental impacts. All other change orders will be submitted to ECOLOGY
within 30 days of execution and contain a P.E. stamp if the change order contains engineering content.
Task Goal Statement:
See overall goal.
Task Expected Outcome:
-See-eveleti-ges
Deliverables
Number Description Due Date
2.1 Documentation of the RECIPIENT'S Procurement Process.
2.2 Bid Tabs,the Notice of Award,and a Copy of the Executed
Construction Contract.
2.3 Copy of the Notice to Proceed.
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
2.4 The RECIPIENTS Sewer Revenue and User Rate Plan.
2.5 Minutes of the Pre-Construction Meeting.
2.6 A copy of all Change Orders.
2.7 Documentation of an Energy Efficiency Review.
2.8 Complete SERP EID.
2.9 Ecology Cultural Resources Review Form.
2.10 Inadvertent Discovery Plan(IDP).
CHANGES TO SCOPE OF WORK
Task Number: 3 Task Cost: $300,000.00
Task Title: Construction Management
Task Description:
A. The RECIPIENT will provide adequate and competent construction management and inspection for the Project.
This may involve procuring the professional services. If professional services are procured, the RECIPIENT will
procure them in accordance with state law. The RECIPIENT will include ECOLOGY's specification insert in the
contract documents. The RECIPIENT must submit all contracts for construction management services before
ECOLOGY will provide reimbursement for work performed under this task.
B. The RECIPIENT will develop a detailed Construction Quality Assurance Plan (WAC 173-240-075)and submit it to
ECOLOGY for approval prior to any ground disturbing activities. This plan will describe the activities which the
RECIPIENT will undertake to achieve adequate and competent oversight of all construction work.
C. The RECIPIENT will ensure construction progresses according to a timely schedule developed to meet completion
dates indicated in the construction contract. The RECIPIENT will revise or update the schedule whenever major
changes occur and resubmit to ECOLOGY. A significant change in the scope of work may trigger a SERP review and
should be discussed and coordinated with ECOLOGY. In the absence of any major changes, the RECIPIENT will
describe progress of the construction in the monthly/quarterly progress reports.
D. Upon completion of construction, the RECIPIENT will provide ECOLOGY's Project Manager with a set of
"as-built" plans by the expiration date of this agreement(i.e., record construction drawings which reflect changes,
modifications, or other significant revisions made to the project during construction).
E. Upon substantial completion, the recipient will notify ECOLOGY and coordinate the project's closeout with
ECOLOGY's Project Manager.
F. Upon project completion,the RECIPIENT will submit the Declaration of Construction Completion form to
ECOLOGY in accordance with WAC 173-240-090. The form,when signed by a professional engineer, indicates that
the project was completed in accordance with the plans, specifications, and major change orders approved by
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
ECOLOGY,and is accurately shown on the as-built plans.
G. As a condition of receiving this funding,the RECIPIENT will prepare an asset management program (fiscal
sustainability plan). The RECIPIENT will certify that a plan that contains at least the minimum required elements
listed below has been developed and is being implemented:
a. An inventory of critical assets that belong to the utility.
b. An evaluation of the condition and performance of the critical assets.
c. A plan to maintain, repair, and replace the critical assets and to fund those activities.
d. A plan to coordinate utilities, including water, sewer, stormwater,and transportation for work in the right-of-way.
e. A process to evaluate and implement water and energy conservation efforts as part of the plan.
H. The RECIPIENT will certify that a plan that contains at least the minimum required elements listed above has
been developed and is being implemented.
Task Goal Statement:
See overall goal.
Task Expected Outcome:
See overall goal.
Deliverables
Number Description Due Date
3.1 Construction Quality Assurance Plan.
3.2 "As-built"Plans.
3.3 Declaration of Construction Completion.
3.4 Certification that the asset management program(fiscal
sustainability plan)has been developed and is being implemented.
CHANGES TO SCOPE OF WORK
Task Number: 4 Task Cost: $370,000.00
Task Title: Design&Construction Eng. for Grinder Pump System
Task Description:
A. The RECIPIENT will provide adequate and competent design engineering and construction support for the project.
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
This may involve procuring the professional services. If professional services are procured, the RECIPIENT will
procure them in accordance with state law. The RECIPIENT will include ECOLOGY's specification insert in the
contract documents. The RECIPIENT must submit all contracts for construction management services before
ECOLOGY will provide reimbursement for work performed under this task.
B. The RECIPIENT will design the specific grinder pump locations and connections to the sewer mains. Plans and
specifications developed by the RECIPIENT must be consistent with the requirements of Chapter 173-240 WAC. See
long description for more detail.
C. The RECIPIENT will ensure design progresses according to a timely schedule developed to meet completion dates
indicated in the design contract and overall project schedule. The RECIPIENT will revise or update the schedule
whenever major changes occur and resubmit to ECOLOGY. A significant change in the scope of work may trigger a
SERP review and should be discussed and coordinated with ECOLOGY. In the absence of any major changes,the
RECIPIENT will describe progress of the construction in the monthly/quarterly progress reports.
Task Goal Statement:
See overall goal.
Task Expected Outcome:
See overall goal.
Deliverables
Number Description Due Date
4.1 Executed Contract for Engineering Services, including Engineering
Construction Support.
4.2 Documentation of the RECIPIENT's Process for Procuring
Engineering Services.
4.3 Bid Documents.
CHANGES TO SCOPE OF WORK
Task Number: 5 Task Cost: $12,500.00
Task Title: Equipment& Tool Purchase
Task Description:
A. The RECIPIENT will submit product details and costs for all equipment or tool purchases for approval by
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Amendment No.2
ECOLOGY prior to purchasing the equipment or tool. No reimbursement will be made for equipment or tools that are
not approved by ECOLOGY prior to purchase. Tools and equipment under this task are those not already included in
the construction contract.
B. The recipient will procure the equipment in accordance with state laws.
C. Following ECOLOGY approval,the RECIPIENT may purchase the following equipment and tools.
a. Vactor truck or trailer;
b. Vehicle(s);
c. Spare sewer grinder pumps(with associated tanks and electrical equipment);
d. Valves and piping; etc.
e. Maintenance equipment.
Task Goal Statement:
See overall goal.
Task Expected Outcome:
See overall goal.
Deliverables
Number Description Due Date
5.1 Submittal of Product Details and Cost for Equipment or Tool
Purchase prior to purchase for Ecology approval.
5.2 Documentation of the Procurement Pi mess.
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Amendment No.2
Funding Distribution Summary
Recipient/Ecology Share
Funding Distribution Name Recipient Match % Recipient Share Ecology Share Total
Centennial Grant 0 % $ 0.00 $ 1,876,603.00 $ 1,876,603.00
SRF Forgivable Principal 0 % $ 0.00 $ 3,123,397.00 $ 3,123,397.00
SRF Loan(State) 0 % $ 0.00 $ 1,667,000.00 $ 1,667,000.00
Total $ 0.00 $ 6,667,000.00 $ 6,667,000.00
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
AUTHORIZING SIGNATURES
All other terms and conditions of the original Agreement including any Amendments remain in full force and effect,
except as expressly provided by this Amendment.
The signatories to this Amendment represent that they have the authority to execute this Amendment and bind their
respective organizations to this Amendment.
This amendment will be effective 11/20/2025.
IN WITNESS WHEREOF: the parties hereto, having read this Amendment in its entirety, including all attachments,do
agree in each and every particular and have thus set their hands hereunto.
Washington State Jefferson County- Public Works Engineering
Department of Ecology
By: it►11OP ,hz • Z S�
Jon Kenning, PhD Date Monte Reinders Date
Water Quality Public Works Director
Program Manager
Heather Dudley-Nollette
District 1 Commissioner Date
Heidi Eisenhour
District 2 Commissioner Date
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• -Jefferson County-Public Works Engineering
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Agreement No.WQC-2024-JCoPWE-00034
Amendment No.2
Greg Brotherton
District 3 Commissioner Date
Philip C. Hunsucker
C
December 10, 2025
Chief Civil Deputy Prosecuting Attorney Date
Template Approved to Form by
Attorney General's Office
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