HomeMy WebLinkAbout020816_ca08Consent Agenda
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: County Commissioners
County Administrator, Philip Morley
FROM: Jared Keefer, Director, Environmental Health
David Alvarez, Chief Civil DPA
DATE: Monday, February 8, 2016 meeting (written Feb. 2, 2016)
RE: Hood Canal Regional Septic Loan Program
STATEMENT OF ISSUE:
The Washington State Department of Ecology ("Ecology") has funding via a
Revolving Loan program that will allow individual homeowners to apply for funding to
improve, repair and replace their on-site septic systems if that system has failed or is
substandard and thus presumably harming the water quality of the Hood Canal.
This Septic Loan program will involve four peninsula counties, Kitsap, Mason,
Jefferson and Clallam. The money will flow from Ecology to Kitsap County via a contract.
Kitsap will administer the program and, in turn, will contract with a lending firm which, in
turn, will loan the money to the homeowner with the substandard septic system.
An Interlocal Agreement to be executed pursuant to Ch. 39.34 RCW, the Interlocal
Cooperation Act, will memorialize the terms and obligations imposed on each of the four
counties listed above.
ANALYSIS:
The Kitsap County -Ecology contract makes Kitsap County the ultimate guarantor of
the loans should a borrower and lender default, but staff has confidence this is an unlikely
event because the lender has some $45 million in loss reserves to cover any defaults. If both
lender and the borrower/landowner are unable to meet their debt obligations and only in those
circumstances, Jefferson County would be in a position of guaranteeing their portion of the
money loaned within their jurisdiciton to Kitsap County for the default loan amounts. But in
those circumstances Jefferson County would be the recipient of the loan repayments from
those borrowers who were current with their loan to repay Kitsap County.
Consent Agenda
The size of the loans issued in Jefferson County (some $85,000 in 2015) is easily
dwarfed by the loan loss reserves that the lender holds. County Treasurer Prada is aware of
this potential liability for the County and would carry it on the county's accounts as a liability
equal to the loan amount for all the prior years. She is comfortable with listing this liability in
light of the financial strength of the lender.
FISCAL IMPACT:
Liability would have to be carried on the County's record. There would be no expense
incurred by the County unless there was a default on one or more individual loans by both the
borrower and the lender.
RECOMMENDATION:
Approve and execute the attached Interlocal Agreement, which has been reviewed and
"approved as to form" by Chief Civil DPA Alvarez as well as reviewed and approved by the
legislative authorities of the other three participating jurisdictions.
DEPARTMENT CONTACT:
Jared Keefer, Director of Environmental Health, extension 411
David Alvarez, Prosecutor's Office, extension 219
REVIEWED BY:
Philip Morl , County A lminis r
Date
HOOD CANAL REGIONAL SEPTIC LOAN PROGRAM
AN INTERLOCAL AGREEMENT BETWEEN
Clallam County
Jefferson County
Kitsap County
Mason County
Kitsap Public Health District
THIS AGREEMENT ("AGREEMENT") is entered into by and between Clallam
County, Jefferson County, Kitsap county, Mason County, and the Kitsap Public Health District
(collectively, "the Parties") for the purpose of participating in a Clean Water (Septic) Loan
program to provide financial assistance to citizens residing within the boundaries of the Parties to
address water quality issues in Hood Canal caused by onsite sewage systems.
I. RECITALS
1.1 INTERLOCAL COOPERATION ACT. The Interlocal Cooperation Act,
Chapter 39.34 RCW, allows public agencies to enter into cooperative agreements to more
efficiently provide services within their jurisdictions.
1.2 HOOD CANAL PROGRAM. This Agreement continues and expands the Hood Canal
Regional Septic Loan Program ("Program"). In collaboration with the Washington State
Department of Ecology ("Ecology") and Craft 3, a 501(c)(3) organization, public funding is
leveraged with private capital to implement the Program. The Program Guidelines are attached
to this Agreement as Exhibit A, and incorporated by reference herein. Public funding for the
Program is described in the contract between Ecology, Kitsap County, and the Kitsap Public
Health District attached hereto as Exhibit B, and incorporated by reference herein. Except as
described in Sections 2.3 and 2.5 below, or if public funding or private funding described below
is fully expended, ends, or is no longer available for purposes of this Program, the Agreement
and the Program it establishes are deemed to have no termination date.
1.3 STATE FUNDING. Public funding sources are a Centennial Clean Water Program
Grant and Clean Water Act State Revolving Fund loan (hereafter "Revolving Fund Loan").
Kitsap County and the Kitsap Public Health District will enter into a contract with Ecology to
administer the public funding portion of the Program. The Revolving Fund Loan is a general
obligation debt of the Parties. In addition, the Parties are responsible for leading compliance,
inspections, permitting, contractor certification, and outreach within their territorial jurisdictions.
1.4 PRIVATE FUNDING. Craft3 has established and operated a revolving loan fund
program since 2007 utilizing public and private funding and has additionally established a loan
loss reserve to address any losses associated with this fund. As of 12/31/15, unadjusted Craft3
company -wide loan loss reserves (LLR) exceeded 3.5 million and included over $350,000 in
LLR specifically dedicated to this Clean Water fund. The contract between the Health District
and Craft 3 is attached to this Agreement as Exhibit C and incorporated by reference herein.
Hood Canal Regional Septic Loan Program Performance Assessment Page 1
1.5 PURPOSE OF AGREEMENT. The purpose of this Interlocal Agreement is to
establish the joint and cooperative undertaking in connection with the Program, provide for
administrators responsible for administering the Program, and define management and financial
responsibilities as contemplated in RCW 39.34.030.
II. AGREEMENT
2.1 PROGRAM. The Parties agree that management and operation of the Program will be
based on the Program Guidelines attached as Exhibit A and the contract between Ecology,
Kitsap County, and the Kitsap Public Health District attached hereto as Exhibit B, both of which
are incorporated by reference into this Agreement. The Program may be modified pursuant to
Section 2.10 of this Agreement.
2.2 TREASURY AND FINANCIAL REPORTING. Kitsap County will provide the
treasury functions for the Program pursuant to RCW 43.09.285, as it has the largest population of
any of the Parties to this Agreement. Kitsap County and the Kitsap Public Health District will
administer the Program. Upon request, Kitsap County and/or the Kitsap Public Health District
will provide the Parties with copies of all contracts, financial reports, payments, and relating
documents sent to and received from Ecology regarding the Program. The financial reports will
reflect reports prepared by Craft3 on the number of loan applications submitted and approved,
projects currently under construction, projects completed, and projects in default.
2.3 FINANCIAL RESPONSIBILITY. By and through this Agreement, each Party is a
party to the contract between Kitsap County, the Kitsap Public Health District, and Ecology,
which contract is attached to this Agreement as Exhibit B and incorporated by referenced herein.
Kitsap County is the administrator of the Program pursuant to RCW 39.34.030 for the purpose of
obtaining funding on behalf of all Parties to this Agreement, and is providing the treasury and
contracting functions as required by RCW 43.09.285. Program loans relating to property
situated within a Party's territorial jurisdiction that are in default such that Kitsap County has the
obligation to make Ecology whole shall be a general obligation debt of that Party. If Kitsap
County funds are utilized to repay loan funds to Ecology for property situated within another
Party's territorial jurisdiction, then that Party will reimburse Kitsap County the amount of funds
repaid to Ecology. In the event Kitsap County wishes to terminate its role in providing treasury
and contracting functions under this Agreement, Kitsap County shall provide six months written
notice to the other Parties to this Agreement.
2.4 PROGRAM ADVISORY BOARD. Each Party shall appoint one member to the
Program Advisory Board ("Advisory Board"). The functions of the Advisory Board will be to
review ongoing implementation of the Program, including financial status, marketing program,
and evaluation of program operations. The Advisory Board shall meet at least quarterly to
review the implementation of the Program. The Parties may periodically request, but not more
than twice yearly, a written report from the Advisory Board. The Parties will seek to coordinate
reporting by the Advisory Board with reporting provided by Craft 3 relating to the Program. The
Advisory Board may modify the Program Guidelines through a unanimous vote of all members.
Hood Canal Regional Septic Loan Program Performance Assessment Page 2
2.5 TERMINATION OF PROGRAM. The Program shall be terminated only when the
legislative authorities of all the Parties have determined that they no longer wish to participate in
the Program. The termination of the Program shall be effective only upon the end of the current
calendar year. Upon termination of the Program, the Parties shall seek to reach agreement on the
payment of financial responsibilities, collection of loans, division of remaining funds, and
ongoing implementation of the Program by Parties to this Agreement on an individual or shared
basis. If the Parties cannot reach agreement on the terms for termination of the Program, then
the Dispute Resolution process in Section 2.11 of this Agreement shall apply.
2.6 RECORDS MAINTENANCE. The Parties shall maintain books, records, documents
and other evidence, which sufficiently and properly reflect all costs relating to the Program.
These records shall be subject to inspection, review, or audit by agencies so authorized by law.
All books, records, documents, and other material relevant to this Agreement will be retained for
six years after expiration and the Office of the State Auditor, federal auditors, and any persons
duly authorized by the Parties shall have full access to and the right to examine any of these
materials during this period. The local government Parties will comply with all applicable
provisions of chapter 42.56 RCW, the Public Records Act. Records and other documents, in any
medium furnished by one party to this Agreement to the other party, will remain the property of
the furnishing party, unless otherwise agreed. The receiving party will not disclose or make
available this material to any third parties without first giving notice to the furnishing party and
giving it a reasonable opportunity to respond. Each party will utilize reasonable security
procedures and protections to assure that records and documents provided by the other party are
not erroneously disclosed to third Parties.
2.7 RIGHTS IN DATA. Unless otherwise provided, data which originates from this
Agreement shall be "works for hire" as defined by the U.S. Copyright Act of 1976 and shall be
owned equally by the Parties. Data shall include, but not be limited to reports, documents,
pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tapes,
and/or sound reproductions. Ownership includes the right to use, copyright, patent, register and
the ability to transfer these rights.
2.8 PROPERTY. The Parties do not anticipate the acquisition of property for the
performance of this agreement, and any property acquired by a Party using this Agreement shall
be held by the acquiring Party.
2.9 INDEPENDENT CAPACITY. The employees or agents of each party who are
engaged in the performance of this Agreement shall continue to be employees or agents of that
party and shall not be considered for any purpose to be employees or agents of the other party.
2.10 AGREEMENT ALTERATIONS AND AMENDMENTS. This Agreement may be
amended by unanimous agreement of the Parties. Such amendments shall not be binding unless
they are in writing and signed by personnel authorized to bind each of the Parties.
2.11 DISPUTES. In the event that a dispute arises under this Agreement, it shall be
determined by a dispute board in the following manner: Each party to this Agreement shall
appoint a member to the dispute board. The members so appointment shall jointly appoint two
Hood Canal Regional Septic Loan Program Performance Assessment Page 3
additional members to the dispute board. The dispute board shall evaluate the facts, contract
terms and applicable statutes and rules and make a determination of the dispute. The
determination of the dispute board shall be final and binding on the Parties hereto.
2.12 GOVERNANCE. This contract is entered into pursuant to and under the authority
granted by the laws of the State of Washington and any applicable federal laws. The provisions
of this Agreement shall be construed to conform to those laws. In the event of an inconsistency
in the terms of this Agreement, or between its terms and any applicable statute or rule, the
inconsistency shall be resolved by giving precedence in the following order: 1. Applicable State
and federal statutes and rules; 2. Any other provisions of this Agreement, including materials
incorporated by reference.
2.13 ASSIGNMENT. The obligations under this Agreement, and any claims arising
thereunder, are not assignable or delegable by either party in whole or in part, without the
express prior written consent of all other Parties, which consent shall not be unreasonably
withheld.
2.14 WAIVER. A failure by any party to exercise its rights under this Agreement shall not
preclude that party from subsequent exercise of such rights and shall not constitute a waiver of
any other rights under this Agreement unless stated to be such in a writing signed by an
authorized representative of the party and attached to the original Agreement.
2.15 SEVERABILITY. If any provision of this Agreement or any provision of any document
incorporated by reference shall be held invalid, such invalidity shall not affect the other
provisions of this Agreement which can be given effect without the invalid provision, if such
remainder conforms to the requirements of applicable law and the fundamental purpose of this
Agreement, and to this end the provisions of this Agreement are declared to be severable.
2.16 ALL WRITINGS CONTAINED HEREIN. This Agreement contains all the terms and
conditions agreed upon by the Parties. No other understanding, oral or otherwise, regarding the
subject matter of this Agreement shall be deemed to exist or to bind any of the Parties hereto.
IN WITNESS WHEREOF, the Parties have executed this Agreement.
Executed this day of , 201
Clallam County
By:
Title:
Executed this day of , 201
Jefferson County
By:
Title:
Hood Canal Regional Septic Loan Program Performance Assessment Page 4
Executed this day of , 201_
Executed this day of , 201_
Mason County
Kitsap County
By:
By:
Title:
Title:
Executed this day of , 201_
Kitsap Public Health District
By:
Title:
Date:
APPROVED AS TO FORM ONLY BY THE
Clallam County Prosecuting Attorney
2 3 I�
Date: &4 �" 1
APPROVED AS TO FORM ONTA BY THE
Jefferson County Prosecuting Attoeney
Date:
APPROVED AS TO FORM ONLY BY THE
Kitsap County Prosecuting Attorney
Date:
APPROVED AS TO FORM ONLY BY THE
Mason County Prosecuting Attorney
Hood Canal Regional Septic Loan Program Performance Assessment Page 5
Septic Loan
GUIDELINES
Septic Loan Guidelines: 2012 update Page 1 of 14
Table of Contents
a.
b.
II.
a.
b.
C.
III.
a.
b.
C.
d.
e.
IV.
a.
b.
V.
a.
b.
C.
VI.
a.
b.
C.
d.
e.
f.
9 -
VII.
a.
b.
VIII.
IX.
a.
b.
C.
d.
e.
f.
9.
h.
X.
a.
XI.
a.
b.
cumentName and Purpose................................................................................................
3
Vame...................................................................................................................................3
31urpose................................................................................................................................
3
inOverview.........................................................................................................................
3
3ackground..........................................................................................................................
3
3articipantsand roles..........................................................................................................
4
<ey contacts........................................................................................................................
5
thority..................................................................................................................................
5
Oversightand administration..............................................................................................
5
Soverningdocument...........................................................................................................
5
LoanMonitoring..................................................................................................................
5
Credit determination authority...........................................................................................
6
Confidentiality.....................................................................................................................
6
anEligibility..........................................................................................................................
6
The following are eligible to apply for the Septic Loan: ...................................................... 6
The following are not eligible for the Septic Loan: .............................................................. 6
esof Loan Proceeds.............................................................................................................
7
Fulleligibility........................................................................................................................ 7
LimitedEligibility................................................................................................................. 8
ProhibitedUses...................................................................................................................
8
anStructure.........................................................................................................................
8
Overview..............................................................................................................................
8
Applicationrequirements....................................................................................................
9
Rates& Terms.....................................................................................................................
9
LoanFees...........................................................................................................................
10
Operation, Maintenance and Monitoring (O&M) Reserve and Requirements .................
10
Collateral...........................................................................................................................11
LoanLoss Reserves............................................................................................................
11
es of the Septic Loan for Commercial Properties..............................................................
12
Rates and terms for commercial properties.....................................................................
12
Application and underwriting for commercial property owners ......................................
12
editAdministration............................................................................................................
12
uncialAdministration........................................................................................................
12
Segregationof assets.........................................................................................................
12
CostSharing.......................................................................................................................
12
Responsibility.....................................................................................................................
12
Delinquency rate expectations..........................................................................................
12
Defaults.............................................................................................................................
12
Allowancefor Losses.........................................................................................................
13
Charge -Offs ........................................................................................................................
13
Collection Efforts and Filing Judgments............................................................................
13
arketingand Outreach.......................................................................................................
13
Implementation roles and responsibilities........................................................................
13
!porting...............................................................................................................................
14
LoanData...........................................................................................................................
14
FinancialReporting............................................................................................................
14
SepticlLoan Guidelines: 2012 update Page 2 of 14
Document Name and Purpose
These Guidelines, together with attachments, govern the Septic Loan ("Loan"). This document
has been approved for use by the Hood Canal Septic Loan Advisory Board. Unless otherwise
provided for in the Guidelines, exceptions to the policies set forth herein require the approval of
the Advisory Board.
a. Name
The loan product shall be known as the Septic Loan.
b. Purpose
The primary purpose of the Loan is to assist eligible property owners to repair, upgrade
and/or replace existing onsite sewage treatment systems to standards that meet or exceed
applicable code requirements of the participating jurisdictions. Secondary purposes of the
Septic Loan include:
• Increase the asset values of property owners utilizing the Loan;
• Educate current and prospective borrowers of onsite sewage treatment about the
importance of functional and well maintained systems to human health, water quality
and property values; and
• Support the contributions of the shellfish industry and onsite septic professionals to
economic activity in participating jurisdictions.
II. Loan Overview
a. Background
The Septic Loan has been designed to assist property owners who depend on onsite sewage
treatment systems to treat wastewater. The Loan will provide financial assistance in the
form of affordable loans to cover 100% of the costs associated with the design, permitting,
installation, testing and initial maintenance of an approved onsite system which has the
appropriate technology for a particular site. This includes the costs of complying with or
exceeding the code requirements for onsite sewage treatment systems in all participating
jurisdictions. In some circumstances the Loan will enable individual property owners to (1)
connect to an off-site sewage treatment system; or (2) participate with neighbors to design,
install and connect to community or small cluster sewage treatment systems.
Oversight of the Loan is a collaborative approach shared by multiple jurisdictions. These
jurisdictions share a common concern with the actual and potential negative impacts of
faulty onsite sewage treatment systems on human and ecological health. Portions of each of
these jurisdictions are located within the Puget Sound watershed, which may be at risk from
failing septic systems. Participating jurisdictions recognize the value of a single, scalable
approach to financing onsite sewage treatment quality and capacity throughout their
respective geographies.
The Loan is also a joint venture between participating jurisdictions and Craft3 a non-profit
community development financial institution, with a mission to strengthen economic,
ecological and family resilience in Pacific Northwest communities. They achieve this mission
by providing loans and assistance to entrepreneurs, non -profits, individuals, and others,
including those who don't normally have access to financing.
Craft3 is responsible for administering septic loans in the eligible areas of the jurisdictions in
a manner that reflects locally approved policies, land use regulations, applicable health
Septic Loan Guidelines: 2012 update Page 3 of 14
!s, and Washington State consumer lending regulations. The Loan is not a code
rcement strategy. Rather, it is intended to help reduce the financial barriers that
ent property owners from taking corrective action to repair, upgrade or replace failed,
Mete and/or inefficient existing septic systems.
Thr ugh Craft3, property owners who require financing assistance may apply for a loan.
Cra t3 specializes in transactions that are generally not available through traditional banks
anc is more flexible in qualification requirements (wider range of credit, more than just a
cre fit score), and repayment terms. The Loan rates and terms were designed specifically to
be ccessible to borrowers with low incomes, and may be available to those with existing
b.
and previous credit problems.
Participants and roles
1. Program Funders:
State of Washington: The Washington State Department of Ecology provides
financial support for the Loan. This financial support is provided via an Agreement
with Kitsap County, which administers the funds on behalf of the other participating
jurisdictions. As such, the Septic Loan is subject to the procedural and reporting
requirements of the Department as detailed in the agreements between Ecology,
Kitsap County, and Craft3. Kitsap County is the lead agency for receipt and
management of financial assistance from the State of Washington. Their role as lead
agency for the grant is defined in an Interlocal Agreement between themselves,
Mason and Jefferson Counties, and the Skokomish and Port Gamble S'Klallam
Tribes.
Environmental Protection Agency (EPA): The EPA provides funding for the loan
program in Clallam County. The financial support is provided via an Agreement with
Jefferson County, which administers the funds on behalf of Clallam County.
2. Hood Canal Coordinating Council (HCCC): HCCC represents all local government
jurisdictions within the Hood Canal watershed. HCCC provided leadership for the
development and initial public financing of a single septic loan serving its member
jurisdictions.
3. Local Health Jurisdictions: The Public Health Jurisdictions of Jefferson, Kitsap,
Mason, and Clallam Counties are the government sponsors of the loan. Each
jurisdiction is empowered to be a participant as it affects their jurisdiction. In
addition, all regulatory requirements to be satisfied by the borrowers are those of
the respective jurisdiction in which the borrower is located.
4. Lender: Craft3 (formerly Shorebank Enterprise Cascadia) Craft3 is responsible for
management of all aspects of loan origination and servicing, customer service,
reporting, and compliance. Craft3 is responsible for the performance of the Septic
Loan portfolio, minimizing losses and meeting development goals. Craft3 will
ensure that adequate processes and procedures are in place to ensure good credit
quality management consistent with the Septic Loan Guidelines and Craft3 credit
policy. Craft3's credit policy is updated annually and approved by its Board of
Directors. A copy can be made available to the Advisory Board upon request.
5. Sovereign Lands: The Port Gamble S'Klallam and Skokomish Indian Tribes maybe
participating jurisdictions if they deem the Loan relevant to their needs and
Septic koan Guidelines: 2012 update Page 4 of 14
priorities. Loan funds are reserved for their participation. Due to the unique
requirements of delivering loans within the boundaries of Indian Reservations,
customized and separate loan delivery requirements may be necessary. In this
event, a separate Guideline will be developed to govern loan activity accomplished
with these sovereign nations. All activity financed by the Septic Loan must comply
with the health and safety standards and requirements of the sovereign nation in
which the affected property is located.
c. Key contacts
The following individuals have been granted authority to act on behalf of their
participating governments as an Advisory Board to the Septic Loan:
1. For Craft3: Adam Zimmerman, Executive Vice President
2. For Kitsap County: Stuart Whitford
3. For Mason County: Debbie Riley
4. For Jefferson County: Linda Atkins
5. For Port Gamble S'Klallam: Pending
6. For Skokomish Indian: Pending
7. For Clallam County: Andy Brastad
III. Authority
a. Oversight and administration
Authority for oversight and administration is vested in each of the six participating
jurisdictions: Jefferson, Kitsap Mason, Clallam Counties, and Port Gamble S'Klallam and
Skokomish Tribes. These six governments have authority to charter the Loan to operate
in their jurisdictions and the authority to revoke that charter. They will receive a report
from Craft3 and review the Septic Loan program on an annual basis. If they wish to
revoke or substantially change that charter, those changes must be agreed to
unanimously by all six governments.
b. Governing document
The Guidelines are the governing document of the Septic Loan. These guidelines and
amendments to them must be approved by the Advisory Board (unless otherwise
provided for in this or the attached documents).
c. Loan Monitoring
The Septic Loan is monitored by an Advisory Board charged with oversight on behalf of
participating jurisdictions. The parties identified in Section V(b), above, shall constitute
the membership. The Advisory Board may, at its discretion, adopt such rules, regulations
and procedures as it deems necessary to conduct its business. The Advisory Board shall
meet as necessary, but at least semi-annually, to receive progress reports and
recommendations for action from Craft3 staff and management assigned to the Septic
Loan. The Advisory Board will be consulted for approval on major changes to the Loan,
such as modifications to the rates and terms, however Craft3 will maintain sole
authority to make credit determinations and make changes to its internal loan policy.
Septic Loan Guidelines: 2012 update Page 5 of 14
IV.
d.
e.
Credit determination authority
Craft3 has sole and exclusive authority to approve or decline credit according to its
internal Credit Policy. Participating jurisdictions shall not communicate to potential or
current borrowers or details about their loan status, nor shall they use potential default
as tool to influence homeowner compliance.
Confidentiality
To ensure trust, respect and confidence, all customer personal and business financial
affairs will be kept strictly confidential. Craft3 has the authority to protect the
confidentiality of applicants and borrowers and shall not be required to divulge the
names and personally identifiable information of any applicant or borrower. All
customer records and information will be safeguarded and unauthorized access or use is
prohibited. All Loan customers will be provided with a Confidentiality Statement
outlining Craft3's commitment to maintaining confidentiality at loan closing. Craft3 will
include a question on the loan application requesting the borrower's permission to
allow Craft3 to share general loan status information with partners, such as health
jurisdictions and contractors. Craft3 will never share Personally Identifiable Information
(PII), such as date of birth and social security number.
Eligibility
a. The following are eligible to apply for the Septic Loan:
Any person, corporation, or partnership that owns real property located within the
boi inclaries of the approved Health Districts or Departments of participating jurisdictions is
eli ible to apply to for the Septic Loan , provided that the property's assessed valuation
includes a value for improvements to land and meets one or more of the following
b.
1. Demonstration that the existing on-site sewage treatment system is older than 25
years
2. Documentation of a system failure or inadequacy if the system is less than 25 years
old. (Acceptable documentation may be obtained from participating local health
jurisdictions or from a qualified on-site professional).
3. Documentation that a homeowner has been officially referred by a participating
jurisdiction or partner.
4. Documentation that a homeowner is financially distressed: defined as the following:
• A household earning 80% or less of the area median income for all participating
jurisdictions;
A non-profit entity that serves primarily financially distressed households; and
A household that demonstrates that amortizing payments on a loan will cause
their total housing costs to exceed 40% of their gross income.
The following are not eligible for the Septic Loan:
1. Those that do not have the legal right to encumber the real property with a
beneficial interest of Craft3 (Deed of Trust) as collateral for the Loan. Exceptions are
made for situations in which the party who possesses such rights consents to the
Loan and the resulting security interest, and for applicants with homes on lands held
in Trust by the Bureau of Indian Affairs,
Loan Guidelines: 2012 update
Page 6 of 14
2. Property owners that have not paid property taxes and/or other assessments levied
on the property owner by any local or state taxing district for the period covering
the previous two tax years;
Property owners who are residing on property for which there is no record of
permitted improvements;
4. Property owners requesting repairs to existing connections to municipal or public
sewage treatment systems.
5. Property owners in an area the local jurisdiction has identified for development of a
shared or community sewage treatment system. (Local jurisdictions to provide this
information to Craft3).
V. Uses of Loan Proceeds
a. Full eligibility
Loan proceeds may be used to pay for any of the following expenses associated with
repair, upgrading and/or replacement of onsite septic systems:
1. Assessment: Testing, evaluation and assessment of an existing system for failure or
needed repairs (with documented costs reimbursed to the borrower by loan
proceeds);
2. Design: Design, testing, specifications and bidding for repairs, upgrades and/or
replacements of onsite or community systems by licensed, county -approved
contractors, provided however that; the resulting system capacity accommodates
no more than one additional bedroom to an existing permitted single family
residential use or a 25% increase in treatment capacity for commercial or multi-
family (more than 1 unit) uses. The intention with this requirement is that the Septic
Loan support septic repair and replacement, not expansion and upgrades. Some
exceptions to this rule may be warranted and will be allowable upon approval by
the Advisory Board.
3. Permitting: Permit application and regulatory inspection fees;
4. Installation: Installation costs for repairs, upgrades and/or replacement systems
provided however that no systems or approaches not explicitly authorized by
applicable code shall be allowed (e.g. terra lifting is prohibited). These
requirements will be monitored by participating jurisdictions during the permitting
process. Loan proceeds may be used to fund the exact work identified by the
contractor as essential for the installation of the system and specified in the bid
document. If the scope of work changes after loan documents are signed, Craft3
will require the contractor to submit a change -order form signed by the customer or
updated signed bid prior to any changes in loan amounts to be approved.
5. Loan costs: Loan fees, interest and closing costs including those third party fees that
may be required to protect the recorded interest of Craft3 in the real property; as
well as including additional loan sums advanced after the initial loan closing.
6. Water conservation measures: Costs associated with installation of fixtures and
fittings that reduce water consumption, to a maximum of $1,000;
Septic Loan Guidelines: 2012 update Page 7 of 14
VI.
b.
7. Habitat creation: Costs associated with the creation of riparian (shoreline) habitat,
to a maximum of $1,000;
8. Operation & Maintenance: Costs associated with the services of qualified third
parties to service, inspect and maintain on-site treatment systems to specifications
provided by the designer, engineer, and/or supplier of the new system, to a
maximum of $1,750 (provided that such sums are held in reserve by Craft3 for
payment to qualified parties identified and approved by Craft3). Craft3 will, as a
rule, add $1,750 to each borrower's loan amount. Borrowers will not be charged
interest until a disbursement is made.
9. Sewer connection: All costs associated with establishing service with and
connection to an existing off-site treatment system approved by appropriate
regulatory agency.;
10. Construction of on-site sewage system or public sewer connection that will serve
an existing structure with no on-site sewage system if it meets all of the following
conditions:
• Structure is, or will be upon completion, a legally permitted structure used in
methods consistent with the permitted use;
• Structure is currently occupied by a resident or being used while under local
health jurisdiction order to construct sewage treatment facilities or abandon
use of the property as a residence; and,
• Structure meets all other applicable construction and use codes.
Limited Eligibility
Craft3 will consider loans to support the development of community and cluster
systems serving multiple properties. Total loans for such systems shall not exceed 10%
of total available Septic Loan financial resources at any time. In the case of community
systems, Craft3 shall determine eligibility, feasibility and types of assistance on a case-
by-case basis with input from the Advisory Board. Advisory Board approval for all loans
to community and cluster systems is required.
Prohibited Uses
The loan funds may not be used for the following purposes:
1. Loan funds may not be used to finance on -or off-site systems when the new system
is not replacing, repairing or improving an existing system.
2. The Loan funds may not be used to finance on- or off-site systems for improvements
not recognized as permitted and compliant by participating jurisdictions.
3. The Loan funds may not be used to finance costs for labor or other services not
incurred by a licensed, county -approved, or otherwise certified professional.
Prohibited uses #1 and 2 will be monitored by participating jurisdictions and #3 will be
monitored by Craft3. Any exceptions will be approved by the Advisory Board.
Structure
a. Overview
Septic Loan terms and conditions are specifically designed to address the diverse needs
and situations of property owners in the participating jurisdictions, including those with
SepticlLoan Guidelines: 2012 update Page 8 of 14
low incomes, fixed incomes, and those who have experienced other financial hardships.
In the interest of maximizing the impact of the Septic Loan on human health and water
quality, Craft3 will tolerate higher risk and will consider a broader range of credit and
other credit requirements than is typical for this market.
Loan terms and conditions shall be reviewed annually; any modifications shall require
the consent of the Advisory Board and Craft3 management. However, Craft3 shall not
agree to loan terms and conditions that it cannot justify from a financial operating
perspective.
b. Application requirements
Craft3 septic loan applications are available online, from Craft3 offices, by mail, and
through local distribution systems. A complete Craft3 Septic Loan application will
consist of personal or business financial information required to make a credit
determination (e.g. personal financial statement, property tax statements and tax
returns or comparable business documentation for commercial properties) and the
following details about the septic project:
• Description of why the project is needed including basic technical information on
the deficiencies of the current system and current plans for repairs and/or
replacement. (e.g. Standard referral Certification of Need from participating
jurisdictions and/or onsite professionals establishing the need for repair, upgrade or
replacement of the existing system)
• Approved project bid, budget and design team
• Evidence that:
• Project is approved by the regulatory agency
• The existing improvements are permitted and compliant with existing and
applicable codes;
c. Rates & Terms
Craft3 shall determine pricing policy in collaboration with the Advisory Board. The chart
below establishes the current (as of 1/1/12) loan terms and interest rates for qualified
borrowers
SEPTIC LOANS TO
RESIDENTIAL
OWNER -OCCUPIED PROPERTIES
Annual HH
Interest
Repayment
Example
Income
Rate
Terms
Below $26,566
2% fixed
No monthly payments
$15,000 loan amount, no
required. Interest and
monthly payments for 119
principal balance; due on sale,
months, then 1 balloon payment
transfer, refinance, or maturity
of $17,989 due on the 120th
month (APR 2.34%)
$26,567-
4% fixed
Monthly interest only
$15,000 loan amount, 119
44,276
payments. Principal balance
monthly interest payments of
due on sale, transfer,
$50.96, then 1 balloon payment
refinance, or maturity.
of $15,051 due on the 120th
month (APR 4.59%)
Greater than
6% fixed
Monthly principal and interest
$15,000 loan amount, $126.61
$44,276
payments based on a term not
per month, 15 year term (180
to exceed 15 years
months) (APR 6.67%)
IRV
Septic Loan Guidelines: 2012 update Page 9 of 14
Any
n/a. Crft3
Busine s
lending
policie will be
used t
evalua e
from
costs.
e.
6% Monthly principal and interest
payments based on a term not
to exceed 15 vears
6% Monthly principal and interest
payments based on a term not
to exceed 15 years
$15,000 loan amount, $126.61
per month, 15 year term (180
$15,000 loan amount, $126.58
per month, 15 year term (180
months)
availability, terms, and conditions current as of 10-1-2011, and are subject to change with input
Septic Advisory board. Examples assume standard third party and lender loan fees for residential
owners totaling $900. Fees for business property owners will be $450 plus applicable closing
>t all applicants will qualify. Craft3 NMLS #390159.
Loan Fees
Craft3 Loan Policy shall establish a schedule of applicable loan fees. The fees collected
shall cover its reasonable costs of delivering and servicing the Septic Loan. All fees may
be included in the loan amount. The current fee schedule to borrowers for the Septic
Loan consists of:
• Origination Fees: Craft3 shall be entitled to a loan fee of $350 for residential
property owners and $450 for commercial property owners, and such fee shall
cover its administrative and loan documentation costs. The fee shall be fully earned
upon acceptance of a loan approval by the borrower.
• Document Fees: Craft3 shall be entitled to a standard documentation fee for each
loan. The fee may be included in the loan amount.
• Closing Costs: Craft3 shall pass on to the borrower its costs of closing the loan,
including but not limited to credit reports recording, overnight mail, copying and
other related costs. These fees may be included in the loan amount.
• Late Fees: Generally, late fees are charged when a required loan payment is
received after the grace period (generally 10 days). Loan Officers have the authority
to negotiate Late Fees with Borrower to be waived or capitalized if it in the best
interest of both Craft3 and the Borrower.
• Default Rates: Generally, a default rate of several percentage points (as determined
by management) over the Note Rate is applied to loans in default, retroactive to the
date of default.
• Other Charges: Restructuring fees, assumption fees, and reconveyance or discharge
fees may be applied to the loan at the discretion of Craft3.
Operation, Maintenance and Monitoring (O&M) Reserve and Requirements
Each loan amount shall be increased by the estimated sum necessary to cover specified
costs of system maintenance, monitoring, and inspections for at least five years, or
$1,750, (whichever is greater). Sewer connection loans will not include reserve amounts
unless the designer, engineer or installer specifies any maintenance necessary to keep
the connection operational. For commercial facilities an amount larger than $1,750 may
be reserved at the discretion of Craft3. Borrowers do not pay interest on funds until
they are disbursed.
Septic �oan Guidelines: 2012 update Page 10 of 14
• Monitoring requirements
• Craft3 will make available a reserve of $1,750 to help borrowers cover the costs
of inspections, maintenance, and repairs for up to five years after the
installation of the system.
• The $1,750 reserve will be added to the total amount of the loan, but interest
will not be charged on these until the borrower utilizes the funds and interest
will only be charged on amounts disbursed.
• The O&M reserve is a requirement of the Septic Loan: Craft3 loan documents
will provide specific Craft3 requirements for inspections and repairs; borrowers
will separately be subject to all applicable requirements for their county.
• Craft3 will remind customers, from time to time, of the availability of these
funds as an incentive for them to inspect and repair their systems. Craft3 will
also coordinate with the participating counties and may issue reminders to
certain customers upon request. Borrowers who are out of compliance with the
county will not be considered in default for their loan by Craft3; County
representatives shall not communicate loan status information to Craft3
borrowers or make claims connecting County compliance with loan status.
• All borrowers must stipulate that Craft3 and its agents or assigns shall have the
legal right of access to the financed system for purposes of verifying proper
operation and maintenance and, if necessary, conducting specified maintenance
and/or monitoring inspections.
• Disbursement process
• Upon submission of a borrower -approved invoice for the cost of the inspection,
repair, or maintenance, Craft3 will pay the contractor directly.
If borrower defaults on loan, O&M funds will no longer be available.
f. Collateral
All Septic loans shall be secured by a security interest in the borrower's real property
assets (e.g. Deed of Trust). Additional collateral or loan loss reserve allocations may be
required if the subject property does not satisfy this standard.
g. Loan Loss Reserves
1. Standard Loan Loss Reserve
10% of each loan amount shall be deposited at loan closing into to a restricted account
for the purposes of reserving for loan losses, unpaid property taxes, the interests of
priority security interests, and eventual loan write offs. In the event of a loss, Craft3 will
transfer 100% of the cost of the loan from the Loan Loss Reserve into the Septic Loan
fund for ongoing Septic Loan use. From time to time, Craft3 shall report to the Advisory
Board and the State of Washington on the adequacy of such reserves relative to the
actual risk embedded in the Septic loan portfolio. Based on the analysis of adequacy,
reduced or increased collections for loan loss reserves may be recommended and/or
approved.
2. Special Loan Loss Reserve
Craft3 may allocate additional loan loss reserves to a borrower as a condition of loan
approval if a financially distressed applicant would otherwise be declined for credit
and/or risk management reasons. In this event, Craft3 shall provide its rationale for the
additional reserve requirements in the quarterly Advisory Board report.
Septic Loan Guidelines: 2012 update Page 11 of 14
VII
of the Septic loan for Commercial Properties
a. Rates and terms for commercial properties
Any approved loan to support repair or replacement of a septic system serving a structure
or facility that is sited on a parcel zoned for commercial use shall receive a 6% rate with
required monthly payments, including interest, for a term not to exceed 15 years, except
that where such a facility is also occupied by the owner as a residence in compliance with
applicable zoning and other use codes, and no more than 50% of the daily sewage flow is
generated by the residence. (Details and example provide on page 9).
b. Application and underwriting for commercial property owners
Cra 3 will provide a business loan application from commercial property owners that covers
rel vant business financial and background documents. Documentation of eligibility for the
Septic Loan and of work plans will be the same as for residential property owners. Craft3
will charge a $450 loan fee plus relevant closing costs.
Vlll. Cre0it Administration
Cra 13 is responsible for administration of the Septic Loan consistent with the organization's
Cre lit Policy. Craft3 has sole authority for adopting and implementing Credit Administration
Pol cy for the Septic Loan. Craft3 will ensure that adequate processes and procedures are in
place to ensure good credit quality management.
IX. Fini ncial Administration
har
a.
b.
C.
d.
e.
use of private and public resources available for the Septic Loan shall be governed by
arate agreements between Craft3 and each funding entity their requirements as to the
dling of funds.
Segregation of assets
Assets designated as the Septic Loan Fund Capital will not be used to fund operations
for the corporation as whole.
Cost Sharing
Craft3 will equitably apply available private and public resources in ways that maximizes
the recovery and reapplication of these resources over time. Special efforts shall be
made to apportion resources and costs in a manner that minimizes the regulatory
constraints placed on borrowers.
Responsibility
Craft3 shall have full responsibility for the financial administration of the Septic Loan
consistent with GAAP and shall report on the fulfillment of these responsibilities as
required by funding entities and the State of Washington.
Delinquency rate expectations
The acceptable ratio of past due loans (loans more than 30 days past due) to total loans
outstanding will be determined by the Craft3 Risk Manager.
Defaults
A loan is considered in default when (1) required payments are not made; (2) on-going
maintenance and servicing of a system once constructed is not performed; or (3) if a
property is refinanced, sold or transferred without the loan being paid off; or (4)
Septic �oan Guidelines: 2012 update Page 12 of 14
borrower fails to comply with reasonable provisions of the Loan Agreement, Promissory
Note and/or Deed of Trust.
If a loan is in default, pricing on the may be increased to reflect the increased risk.
Default interest rates shall be established at the discretion of Craft3.
Allowance for Losses
Allowance for Losses will be determined by the Craft3 Risk Manager. Un -recovered and
fully expensed loan losses (write offs) shall be reported to the IRS as taxable income to
the defaulted borrower. Craft3 shall document its collection efforts to funders and the
Advisory Board on request.
g. Charge -Offs
Whenever any portion of a loan is deemed uncollectible, in part or in whole, a full or
partial charge-off against the Allowance for Loan Losses shall be made to assure that the
value of Craft3' assets are stated as accurately as possible even though partial recovery
may be possible at some time in the future.
A charge-off does not imply any lessening of efforts to collect the loan in full.
Management has responsibility for all loan workouts and collection efforts. Factors such
as the amount of debt, the probability of collection and the time involved must be
considered when determining a course of action and pursuing collection and follow-up.
h. Collection Efforts and Filing Judgments
Craft3 will follow its processes and protocols identified in its Credit Policy to guide all
collection efforts.
X. Marketing and Outreach
The Septic Loan will be marketed throughout participating jurisdictions. The marketing
strategy will be designed to reach the broadest cross section of prospective participants, but
place special emphasis on:
• Property owners with current or pending citations for noncompliance;
• Property owners proximate to Puget Sound and riparian shorelines;
• Property owners proximate to documented water quality problems commonly
associated with the presence of human sewage.
a. Implementation roles and responsibilities
1. Craft3 is responsible for design and printing of marketing collateral (such as
brochures and handouts) and delivery to participating heath jurisdictions for
distribution throughout the participating counties.
2. Participating health jurisdictions, in partnership with Craft3, will reach out to onsite
septic professionals, real estate professionals, and educational groups, to help
promote and market the program.
3. Participating health jurisdictions will distributing collateral materials within each
county in locations, such as banks, health jurisdictions, social service agencies, real
estate offices and other similar locations
Septic Loan Guidelines: 2012 update Page 13 of 14
Xl.
a.
b.
Craft3 will work closely with participating health jurisdictions and other identified
stakeholders to promote the Septic Loan. Specific activities will be determined in
partnership with each county and may include, but are not limited to:
• Monthly or quarterly calls with relevant professionals
• Contractor orientations or networking sessions
• Public service TV and radio spots;
• Advertisements in local media;
• Presentations to service clubs, educational organizations, and community
groups
5. Craft3 may consider developing specialized marketing materials and offering
financial incentives to marketing partners to support successful Loan referrals.
Loan Data
Craft3 shall report to the Advisory Board on a quarterly basis on program progress.
Such reports shall include data specific to each jurisdiction and include, at a minimum:
• Number of inquiries received
• Number of applicants in process
• Number and dollar amount of loans approved and disbursed
• Number of loans declined for credit or risk management reasons including a
summary of the reasons why loans are declined.
• Number and dollar amount of defaulted loans
• Losses expensed to date and amount of reserve for future losses
• Total lending by household income status
Financial Reporting
Craft3 shall provide financial reports as necessary to the Advisory Board to provide an
overview of the financial health of the program. Reports may include information, such
as:
• Revenues derived from fees, interest, contract and grant revenues
• Expenses attributable to the delivery of the Septic Loan, including indirect
administration costs, loss reserves, and the expensing of loan losses;
• Availability of lending resources for future program activity; and/or
• Status of the loan loss reserve
Craft3 shall also make available upon request, the program budget and the findings of
its annual independent audit and compliance assessments.
Guidelines: 2012 update
Page 14 of 14
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
DEPARTMENT OF
COLOGY
State of Washington
Agreement WQC-2015-KAPHD-00157
Water Quality Combined Financial Assistance AGREEMENT
BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY
AND
KITSAP PUBLIC HEALTH DISTRICT
This is a binding Agreement entered into by and between the State of Washington, Department of Ecology,
hereinafter referred to as "ECOLOGY" and KITSAP PUBLIC HEALTH DISTRICT, hereinafter referred to as the
"RECIPIENT" to carry out with the provided funds activities described herein.
GENERAL INFORMATION
Project Title:
Total Cost:
Total Eligible Cost:
Ecology Share:
Recipient Share:
The Effective Date of this Agreement is:
The Expiration Date of this Agreement is no later than
Project Type:
Page 1 of 39
Regional Clean Water Revolving Loan Program
$1,695,000.00
$1,695,000.00
$1,494,981.00
$200,019.00
07/01/2014
06/30/2017
On -Site Sewage System
Project Short Description:
This project is the work of a 4 -county partnership that will contract with a third party lender (Lender) to offer
financial assistance via inclusive, affordable, "Clean Water" loans to property owners to repair or replace failing
On -Site Septic Systems (OSS) in Clallam, Jefferson, Kitsap, and Mason Counties. The loans will reduce financial
barriers to compliance, and contribute to improved water quality benefitting public health, local water quality, and
shellfish harvesting areas.
Project Long Description:
This project will continue the existing Craft3 Clean Water (Septic) Loan Program by expanding the available loan
capital and improving the outreach capabilities of participating Local Health Jurisdiction (LHJ) partners. The LHJ
partners will contract with a third party lender, selected through an competitive process, to provide loans to property
owners. Public grant funds will be matched with State Revolving Fund (SRF) and/or private dollars (at minimum
1:1). The Lender is additionally responsible for maintaining its own Loan Loss Reserve, which may be used to
replenish the Loan Fund in event of defaults. The project budget is mostly dedicated to capitalizing the loan fund. A
WQC-2015-KitPHD-00157
Agreement No: WQ 2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KITS AP PUBLIC HEALTH DISTRICT
small portion of grant funds is set aside to help the participating LHJ's improve their outreach and awareness
building activities in eir counties. A minimum of 96 Loans treating 12 million gallons of wastewater will directly
result from this effort.
The Septic Loan Pro am provides financial assistance via highly -affordable loans to cover 100 percent of all costs
associated with the degign, permitting, and installation of an approved OSS repair or replacement. In certain areas,
loans may also cover 1he cost of municipal sewer connection. The loan program was expanded to Clallam County in
2011, to serve Dunge ess bay and has since expanded county -wide.
Loans will be structumd to provide inclusive credit and meet the needs of property owners and OSS contractors.
Rates and repayment tructure will include reduced rates and deferred payment options for borrowers with lower
household incomes. To support compliance and ensure the ongoing water quality, health, and property value
benefits, the Lender mill also include a reserve of up to $1,750 for each loan for ongoing inspections, operation and
maintenance, and mi*r repairs.
Roles: Each LHJ lea s compliance, inspections, permitting, contractor certification, and outreach. The Lender
provides loan and fun I management—applications, underwriting, servicing, credit policy, risk management, loan loss
reserve, consumer len ling licensing, raising matching funds, and marketing. An Advisory Board (AB) comprised of
participating LHJ rep esentatives and the Lender provides program management and oversight
Overall Goal:
The overall goal of
This will lead to an i
healthier waters for
people in need, the p
move out because th
WQC-2015-KitPHD-00157
program is to restore and protect water quality in the regions streams, salt water and lakes.
-ease in tidelands available for commercial and recreational shellfish harvest, and will provide
mming and other recreational activities. Additionally, since the program is designed to help
;ram will help prevent people from potentially losing their homes to foreclosure, or having to
can't afford repairs.
Page 2 of 39
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
RECIPIENT INFORMATION
Organization Name:
Federal Tax ID:
DUNS Number:
Mailing Address:
Physical Address:
345 6th Street
Contacts
KITSAP PUBLIC HEALTH DISTRICT
42-1689063
169167202
345 6th St. Suite 300
Bremerton, Washington, 98337
Norm Dicks Government Center
Page 3 of 39
Project Manager
Stuart Whitford
Manager - Water PIC
345 6th Street, Suite 300
Bremerton, Washington, 98337
Email: stuart.whitford@kitsappublichealth.org
Phone: (360) 337-5674
Billing Contact
Kelly Evans
Accounting Assistant
345 - 6th Street
Suite 300
Bremerton, Washington, 98337
Email: kelly.evans@kitsappublichealth.org
Phone: (360) 337-5272
Authorized
Scott Daniels
Signatory
Administrator
345 6th Street, Suite 300
Bremerton, Washington, 98337
Email: scott.daniels@kitsappublichealth.org
Phone: (360) 337-5287
W QC-2015-KitPHD-00157
Agreement No: WQ -2015-KitPHD-00157 Page 4 of 39
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KM AP PUBLIC HEALTH DISTRICT
ECOLOGY INFORM ATION
Mailing Address: Department of Ecology
Water Quality
PO BOX 47600
Olympia, WA 98504-7600
Physical Address: Water Quality
300 Desmond Drive
Lacey, WA 98503
Contacts
Project
Melanie Tyler
Manager
P.O. Box 47600
Olympia, Washington, 98504-7600
Email: mety461@ecy.wa.gov
Phone: (360) 407-7489
Financial
Melanie Tyler
Manager
P.O. Box 47600
Olympia, Washington, 98504-7600
Email: mety461@ecy.wa.gov
Phone: (360) 407-7489
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
Page 5 of 39
RECIPIENT agrees to furnish the necessary personnel, equipment, materials, services, and otherwise do all things
necessary for or incidental to the performance of work as set forth in the Scope of Work.
RECIPIENT agrees to read, understand, and accept all information contained within this entire Agreement.
Furthermore, RECIPIENT acknowledges that they have reviewed the terms and conditions of this Agreement, Scope
of Work, attachments, all incorporated or referenced documents, as well as all applicable laws, statutes, rules,
regulations, and guidelines mentioned in this Agreement.
This Agreement contains the entire understanding between the parties, and there are no other understandings or
representations other than as set forth, or incorporated by reference, herein.
This Agreement shall be subject to the written approval of Ecology's authorized representative and shall not be
binding until so approved.
The signatories to this Agreement represent that they have the authority to execute this Agreement.
IN WITNESS WHEREOF, the parties hereby sign this Agreement
Washington State
Department of Ecology
Program Manager
Heather Bartlett
Water Quality
WQC-2015-KitPHD-00157
KITSAP PUBLIC HEALTH DISTRICT
Date Scott Daniels
Administrator
Date
Agreement No: WQ -2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
SCOPE OF WORK
Task Number: 1 Task Cost: $12,500.00
Task Title: Pro ect Administration/Management
Task Description:
A. The RECIPIENT will administer the project. Responsibilities will include, but not be limited to: maintenance of
project records; submittz I of requests for reimbursement and corresponding backup documentation, progress reports
and recipient closeout report (including photos); compliance with applicable procurement, contracting, and interlocal
agreement requirements application for, receipt of, and compliance with all required permits, licenses, easements, or
property rights necess for the project; and submittal of required performance items.
B. The RECIPIENT mut manage the project. Efforts will include: conducting, coordinating, and scheduling project
activities and assuring q ality control. Every effort will be made to maintain effective communication with the
RECIPIENT's designees; ECOLOGY; all affected local, state, or federal jurisdictions; and any interested individuals or
groups. The RECIPIENT must carry out this project in accordance with any completion dates outlined in this
agreement.
Task Goal Statement:
Properly managed proj ct that meets agreement and Ecology administrative requirements.
* Timely and complete ubmittal of requests for reimbursement, quarterly progress reports and recipient closeout
report.
* Properly maintained p oject documentation
inient Tagk Coordinator: Stuart Whitford
Project Adm
Deliverables
Page 6 of 34
Number
Description
Due Date
1.1
Progress Reports
06/30/2017
1.2
Recipient Closeout Report
06/30/2017
1.3
Project Outcome Summary Report
06/30/2017
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
SCOPE OF WORK
Task Number: 2
Task Title: Loan Program Administration
Task Cost: $12,500.00
Task Description:
A. The RECIPIENT will officially administer the loan fund, approve/deny loan applications, and establish and
document the repayment criteria in accordance with the Clean Water Loan guidelines , the program's governing loan
policy document.
B. The RECIPIENT will submit to ECOLOGY for its approval an implementation plan and schedule for the project.
The plan and schedule will include local loan fund program processes and procedures, milestone dates for loan
marketing activities, numbers of loan applications and closures, disbursement, application criteria and deadlines, and
other loan program information. The RECIPIENT or its designees will also submit to ECOLOGY, upon request,
redacted copies of Clean Water Loan documents.
C. The RECIPIENT will support outreach and advertisement of the availability of affordable loans by developing and
printing collateral materials (e.g. brochures), managing a website to provide loan information, conducting outreach to
county -certified OSS contractors, participation in local outreach activities, where relevant, and providing other support
to local health jurisdiction representatives' outreach efforts.
Task Goal Statement:
Effective management and growth of the revolving loan fund by minimizing risk, maximizing water quality and public
health benefits, in adherence with state and local consumer lending regulations. The Lender will maintain loan
portfolio health using servicing and credit risk management practices to ensure that funds will be repaid and re -loaned.
Partners will be supported with marketing materials and outreach tools to drive loan production.
Task Expected Outcome:
1 -Administration of the loan fund and management of loan guidelines and credit risk management policies and
procedures in accordance with relevant consumer lending regulations.
2 -Submittal of an implementation plan and schedule.
3 -Creation of loan marketing materials and distribution to partners.
Recipient Task Coordinator: Lender
Loan Program Administration
Deliverables
Page 7 of 39
Number
Description
Due Date
2.1
Request for Proposal for participating Lender
06/30/2017
2.2
Contract with participating Lender
06/30/2017
2.3
Implementation plan and schedule
06/30/2017
2.4
Marketing materials
06/30/2017
WQC-2015-KitPHD-00157
Agreement No: WQ 2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KITSkP PUBLIC HEALTH DISTRICT
WQC-2015-KitPHD-00157
Page 8 of 39
Agreement No: WQC-2015-KitPHD-00157 Page 9 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
SCOPE OF WORK
Task Number: 3 Task Cost: 51,610,000.00
Task Title: Financial Assistance to Homeowners
Task Description:
A. The RECIPIENT or its designees will provide loans to private entities to repair or replace failing on-site sewage
systems. The RECIPIENT or its designees will fulfill ECOLOGY match requirements through the use of SRF and/or
private dollars to fund individual on-site septic system repairs or replacements or connection to municipal sewer lines,
upon approval by the Local Health Jurisdiction. Loan interest rates and terms will be based on a predetermined scale
depending on the financial capability of the property owner.
B. Small Commercial On -Site Sewage System Repair and Replacement. The RECIPIENT may provide loans to
eligible small commercial enterprises for repair or replacement of on-site sewage systems. The definition of "small
commercial" requires that the average daily flows from any one single business cannot exceed 3,500 gallons per day.
These enterprises may include public lodging (including motels, hotels, and bed and breakfast establishments), rentals
(apartments, duplexes, or houses), small restaurants, stores, or taverns.
Task Goal Statement:
The SRF loan will continue to expand and advance towards the long-term goal of self-sufficiency. Property owners
needing financial assistance to repair or replace their septic systems and fund ongoing O&M or connect to municipal
sewer systems (when approved by the county), will gain access to inclusive credit.
Task Expected Outcome:
A minimum of 96 loans will be originated resulting in a minimum of 96 repaired/replaced septic systems.
Recipient Task Coordinator: Lender
Financial Assistance to Homeowners
Deliverables
Number
Description
Due Date
3.1
Documentation of 96 Clean Water Loans
06/30/2017
3.2
Quarterly reporting on loan production, including overall LLR Status
06/30/2017
WQC-2015-KitPH13-00157
Agreement No: W -2015-KitPHD-00157 Page 10 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KM AP PUBLIC HEALTH DISTRICT
SCOPE OF WORK
Task Number: 4
Task Title
and Education
Task Cost: $60,000.00
Task Description:
A. The RECIPIENT or its designees will support efforts to identify and pursue enforcement of failing septic systems
by leading Clean Water loan outreach efforts to reduce the financial barriers to addressing failing septic systems.
Activities will include, but are not limited to, mailings, newsletter announcements, convening septic educational
classes, local media stor s and advertisements, coordination with local community partners, OSS contractors, and
Pollution Identification1d Correction efforts.
Task Goal Statement:
Maintain and expand a areness of the Clean Water Loan with an emphasis on building awareness amongst fmancially
distressed homeowners ith failing septic systems.
1 -Finalize marketing pl
2 -Advertisement of the an program — low-income residents, OSS contractors, real estate professionals, general public
awareness of Clean Wat r Loan resulting in submission of Clean Water loan applications.
inient Task Coordinator= Stuart Whitford
Outreach and
Deliverables
Number
Description
Due Date
4.1
Marketing strategy
06/30/2017
4.2
Quarterly reporting on key outreach activities
06/30/2017
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
BUDGET
Funding Distribution EG150035
Funding Title: Centennial Grant without match
Funding Type: grant
Funding Effective Date: 07/01/2014
Funding Source:
Funding Expiration Date: 06/30/2017
Title: Centennial- SFY15
Type: State
CFDA:
Assistance Agreement:
Description: The Centennial Clean Water Program provides grants for nonpoint source pollution
control activity projects and wastewater facility construction projects in smaller,
financially distressed communities.
Recipient Match %: 0
InKind Interlocal Allowed: No
InKind Other Allowed: No
Is this Funding Distribution used to match a federal grant? No
Centennial Grant without match
Task Total
Proiect Administration/Management
$ 12,500.00
Loan Program Administration
$ 12,500.00
Outreach and Education
$ 60,000.00
Total: S 85,000.00
WQC-2015-KitPHD-00157
Page I I of 39
Agreement No: WQ -2015-KitPHD-00157 Page 12 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
BUDGET
Funding Distribution l
Funding Title:
Funding Type:
Funding Effective Date
Funding Source:
Title:
Type:
CFDA:
Recipient Match %:
InKind Interlocal Allov
InKind Other Allowed:
Is this Funding Distribt
150036
Centennial Grant with Match
grant
07/01/2014
- SFY15
Funding Expiration Date: 06/30/2017
Agreement:
I: The Centennial Clean Water Program provides grants for nonpoint source pollution
control activity projects and wastewater facility construction projects in smaller,
financially distressed communities.
32.79
Yes
No
used to match a federal grant? No
Centennial Grant with
Match
Task Total
Financial Assistance to
Homeowners
$ 610,000.00
Total: $ 610,000.00
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
BUDGET
Funding Distribution EL150037
Funding Title:
Funding Type:
Funding Effective Date:
Funding Source:
State Revolving Fund
loan
07/01/2014
Funding Expiration Date: 06/30/2017
Title: CWSRF - SFY15
Type: Federal
CFDA: 66.458
Assistance Agreement:
Description: The Clean Water Act (CWA) (33 U.S.C. §1251-1387) established the State Revolving
Fund (SRF) low interest loan program (40. C.F.R. Part 31, 35 Sub Part K). Funds come
from a combination of Federal Capitalization Grant provided through the Environmental
Protection Agency (EPA), state match, and revolved funds from repayments and interest
on previous loans.
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: 1.4% Interest Rate: 0.4% Admin Charge: 1%
Terms: 5 years
Project Start Date: 07/01/2014
Estimated Initiation of Operation date:
Loan Security:
Final Accrued Interest:
Final Loan Amount:
Repayment Schedule Number:
Project Completion Date: 06/30/2017
General Obligation Debt of the Recipient or the state of Washington
2056
State Revolving Fund
Task Total
Financial Assistance to Homeowners
$ 1,000,000.00
Total: $ 1,000,000.00
WQC-2015-KitPHD-00157
Page 13 of 39
Agreement No: WQ -2015-KitPHD-00157 Page 14 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITS AP PUBLIC HEALTH DISTRICT
Recipient / Ecology
Funding DistributiOlk
Name
Recipient Match %
Recipient Share
Ecology Share
Total
Centennial Grant with
Match
32.79 %
$ 200,019.00
$ 409,981.00
$ 610,000.00
Centennial Grant wid
match
out
0.00 %
$ 0.00
$ 85,000.00
$ 85,000.00
State Revolving Fund
0.00 %
$ 0.00
$ 1,000,000.00
$ 1,000,000.00
Total
$ 200,019.00
S 1,494,981.00
$ 1.695.000.00
AGREEMENT SPEOFIC TERMS AND CONDITIONS
N/A
SPECIAL TERMS Af4D CONDITIONS
SECTION 1:
Unless otherwise provilded, the following terms will have the respective meanings for all purposes of this agreement:
"Administration Charg oll means a charge established in accordance with Chapter 90.50A RCW and Chapter 173-98
WAC, to be used to pa Ecology's cost to administer the State Revolving Fund by placing a percentage of the interest
earned in an Administrative Charge Account.
"Administrative Requements" means the effective edition of ECOLOGY's ADMINISTRATIVE REQUIREMENTS
FOR RECIPIENTS O ECOLOGY GRANTS AND LOANS at the signing of this agreement.
"Annual Debt Service' for any calendar year means for any applicable bonds or loans including the loan, all interest
plus all principal due such bonds or loans in such year.
"Average Annual DebiService" means, at the time of calculation, the sum of the Annual Debt Service for the
remaining years of the loan to the last scheduled maturity of the Ioan divided by the number of those years.
"Centennial Clean Wa{er Program" means the state program funded from various state sources.
"Contract Documents' means the contract between the RECIPIENT and the construction contractor for construction of
the project.
"Cost Effective Analy ls" means a comparison of the relative cost -efficiencies of two or more potential ways of solving
a water quality proble as described in Chapter 173-98-730 WAC.
"Defease" or "Defeas ce" means the setting aside in escrow or other special fund or account of sufficient investments
and money dedicated pay all principal of and interest on all or a portion of an obligation as it comes due.
"Effective Date" means the earliest date on which eligible costs may be incurred.
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 15 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
"Effective Interest Rate" means the total interest rate established by Ecology that includes the Administrative Charge.
"Estimated Loan Amount" means the initial amount of funds loaned to the RECIPIENT.
"Estimated Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the
Estimated Loan Amount.
"Final Accrued Interest" means the interest accrued beginning with the first disbursement of funds to the RECIPIENT
through such time as the loan is officially closed out and a final loan repayment schedule is issued.
"Final Loan Amount" means all principal of and interest on the loan from the Project Start Date through the Project
Completion Date.
"Final Loan Repayment Schedule" means the schedule of loan repayments over the term of the loan based on the Final
Loan Amount.
"Forgivable Principal" means the portion of a loan that is not required to be paid back by the borrower.
"General Obligation Debt" means an obligation of the RECIPIENT secured by annual ad valorem taxes levied by the
RECIPIENT and by the full faith, credit, and resources of the RECIPIENT.
"General Obligation Payable from Special Assessments Debt" means an obligation of the RECIPIENT secured by a
valid general obligation of the Recipient payable from special assessments to be imposed within the constitutional and
statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property
within the boundaries of the RECIPIENT.
"Gross Revenue" means all of the earnings and revenues received by the RECIPIENT from the maintenance and
operation of the Utility and all earnings from the investment of money on deposit in the Loan Fund, except (i) Utility
Local Improvement Districts (ULID) Assessments, (ii) government grants, (iii) RECIPIENT taxes, (iv) principal
proceeds of bonds and other obligations, or (v) earnings or proceeds (A) from any investments in a trust, Defeasance, or
escrow fund created to Defease or refund Utility obligations or (B) in an obligation redemption fund or account other
than the Loan Fund until commingled with other earnings and revenues of the Utility or (C) held in a special account
for the purpose of paying a rebate to the United States Government under the Internal Revenue Code.
"Guidelines" means the ECOLOGY'S Funding Guidelines that that correlate to the State Fiscal Year in which the
project is funded.
"Initiation of Operation Date" means the actual date the Water Pollution Control Facility financed with proceeds of the
loan begins to operate for its intended purpose.
"Load" means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund
(Centennial) Loan made pursuant to this loan agreement.
"Loan Amount" means either an Estimated Loan Amount or a Final Loan Amount, as applicable.
"Loan Fund" means the special fund of that name created by ordinance or resolution of the RECIPIENT for the
repayment of the principal of and interest on the loan.
"Loan Security" means the mechanism by which the RECIPIENT pledges to repay the loan.
WQC-2015-KitPHD-00157
Agreement No: WQ -2015-KitPHD-00157 Page 16 of 39
Project Title: Regii nal Clean Water Revolving Loan Program
Recipient Name: KM AP PUBLIC HEALTH DISTRICT
"Loan Term" means th4 repayment period of the loan.
"Maintenance and Ope: -ation Expense" means all reasonable expenses incurred by the RECIPIENT in causing the
Utility to be operated a id maintained in good repair, working order, and condition including payments to other parties,
but will not include an3 depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes.
"Net Revenue" means {he Gross Revenue less the Maintenance and Operation Expense.
"Principal and Interest ccount" means, for a loan that constitutes Revenue -Secured Debt, the account of that name
created in the loan ftin4 to be first used to repay the principal of and interest on the loan.
"Project" means the peject described in this agreement.
"Project Completion Date" means the date specified in the agreement on which the Scope of Work will be fully
completed.
"Project Schedule" mens that schedule for the project specified in the agreement.
"Reserve Account" m s, for a loan that constitutes Revenue -Secured Debt, the account of that name created in the
loan fund to secure the payment of the principal of and interest on the loan.
"Revenue -Secured Deft" means an obligation of the RECIPIENT secured by a pledge of the revenue of a utility and
one not a general oblidation of the RECIPIENT.
"Risk -Based Determtion" means an approach to sub -recipient monitoring and oversight based on risk factors
associated to a RECIP ENT or project.
"Scope of Work" meals the tasks and activities constituting the project.
"Section 319" meanstIe section of the Clean Water Act that provides funding to address nonpoint sources of water
pollution.
"Senior Lien Obligations" means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of
execution of this loan agreement (or subsequently issued on a parity therewith, including refunding obligations) or
issued after the date o execution of this loan agreement having a claim or lien on the Gross Revenue of the Utility prior
and superior to the clam or lien of the loan, subject only to Maintenance and Operation Expense.
"State Water F
established by
"Termination Date"
"Termination Paymi
outstanding balance
"Total Eligible Proj
determined to be el
WQC-2015-KitPHD-00157
Control Revolving Fund (Revolving Fund)" means the water pollution control revolving fund
90.50A.020 RCW.
the effective date of ECOLOGY's termination of the agreement.
Date" means the date on which the RECIPIENT is required to repay to ECOLOGY any
the loan and all accrued interest.
Cost" means the sum of all costs associated with a water quality project that have been
for ECOLOGY grant or loan funding.
Agreement No: WQC-2015-KitPHD-00157 Page 17 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
"Total Project Cost" means the sum of all costs associated with a water quality project, including costs that are not
eligible for ECOLOGY grant or loan funding.
"ULID" means any utility local improvement district of the RECIPIENT created for the acquisition or construction of
additions to and extensions and betterments of the Utility.
"ULID Assessments" means all assessments levied and collected in any ULID. Such assessments are pledged to be
paid into the Loan Fund (less any prepaid assessments permitted by law to be paid into a construction fund or account).
ULID Assessments will include principal installments and any interest or penalties which may be due.
"Utility" means the sewer system, stormwater system, or the combined water and sewer system of the RECIPIENT, the
Net Revenue of which is pledged to pay and secure the loan.
SECTION 2: THE FOLLOWING CONDITIONS APPLY TO ALL RECIPIENTS OF WATER QUALITY
COMBINED FINANCIAL ASSISTANCE FUNDING.
A. Architectural and Engineering Services: The RECIPIENT certifies by signing this agreement that the requirements
of Chapter 39.80 RCW, "Contracts for Architectural and Engineering Services," have been, or shall be, met in
procuring qualified architectural/engineering services. The RECIPIENT shall identify and separate eligible and
ineligible costs in the final negotiated agreement and submit a copy of the agreement to ECOLOGY.
B. Cultural and Historic Resources Protection: The RECIPIENT must comply with all requirements listed in Section
106 of the National Historic Preservation Act (for federally funded projects) or Executive Order 05-05 (for state funded
projects) prior to implementing any project that involves soil disturbing activities. A soil disturbing activity includes
but is not limited to planting vegetation, installing fence posts, sloping stream banks, channel modifications,
geotechnical test borings, and other construction projects. For more details regarding these requirements, please
reference the Water Quality Financial Assistance Funding Guidelines available on ECOLOGY's Water Quality
Program funding website.
C. Equipment Purchase: Equipment not included in the scope of work or a construction plan and specification approval
must be pre -approved by ECOLOGY's project manager before purchase.
D. Funding Recognition: The RECIPIENT must inform the public about ECOLOGY or EPA funding participation in
this project through the use of project signs, acknowledgement in published materials, reports, the news media,
websites, or other public announcements. Projects addressing site- specific locations must utilize appropriately sized
and weather -resistant signs. Sign logos are available from ECOLOGY's financial manager upon request.
E. Growth Management Planning: The RECIPIENT certifies by signing this agreement that it is in compliance with the
requirements of Chapter 36.70A RCW, "Growth Management PIanning by Selected Counties and Cities." If the status
of compliance changes, either through RECIPIENT or legislative action, the RECIPIENT shall notify ECOLOGY in
writing of this change within 30 days.
F. Interlocal: The RECIPIENT certifies by signing this agreement that all negotiated interlocal agreements necessary for
the project are, or shall be, consistent with the terms of this agreement and Chapter 39.34 RCW, "Interlocal
Cooperation Act." The RECIPIENT shall submit a copy of each interlocal agreement necessary for the project to
ECOLOGY.
G. Post Project Assessment Survey: The RECIPIENT agrees to participate in a brief survey regarding the key project
results or water quality project outcomes and the status of long-term environmental results or goals from the project
W QC-2015-KitPHD-00157
Agreement No: WQ 2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
approximately three yes after project completion. A representative from ECOLOGY's Water Quality Program may
contact the RECIPIENtroject,
to request this data. ECOLOGY may also conduct site interviews and inspections, and may
otherwise evaluate the as part of this assessment.
SECTION 3: THE FOLLOWING CONDITIONS APPLY TO NONPOINT ACTIVITY PROJECTS ONLY
A. Technical Assistane: Technical assistance for agriculture activities provided under the terms of this agreement will
be consistent with the durrent U.S. Natural Resource Conservation Service ("NRCS") Field Office Technical Guide for
Washington State. Ho ever, ECOLOGY may accept as eligible technical assistance, proposed practices, or project
designs that do not met these standards if approved in writing by the NRCS and ECOLOGY.
B. Project Status Eva
this agreement. ECOI
spending trends, corm
RECIPIENT fails to r
of work, reduce grant
C. Best Management
ECOLOGY prior to i
may be delayed or in
Financial Assistance
SECTION 4: THE
BEING USED TO
A. Centennial -Funded
matching requirement
reporting requirement:
pollutant load reductic
B. Section 319 Reporl
Initial Data Reporting
>n: ECOLOGY will evaluate the status of this project 18 months from the effective date of
is Project Manager and Financial Manager will meet with the RECIPIENT to review
n of outcome measures, and overall project administration and performance. If the
satisfactory progress toward achieving project outcomes, ECOLOGY may change the scope
or increase oversight measures.
ctices (BMP) Implementation: If the RECIPIENT installs BMPs that are not approved by
illation, the RECIPIENT assumes the risk that part or all of the reimbursement for that activity
ible. For more details regarding BMP Implementation, please reference the Water Quality
ding Guidelines available on ECOLOGY's Water Quality Program funding website.
Page 18 of 39
CONDITIONS APPLY TO CENTENNIAL CLEAN WATER FUNDED PROJECTS
SECTION 319 FUNDS ONLY.
-ojects Used to Match Section 319 -Funded Projects: Projects used by ECOLOGY to meet a
r the Section 319 program require the RECIPIENT to comply with Federal Section 319
Required reporting includes providing project data on BMP implementation and annual
Requirements: The RECIPIENT must complete ECOLOGY's "Clean Water Act Section 319
;et." The RECIPIENT must submit this form to ECOLOGY's Financial Manager with the
signed agreement. Thi form is available on ECOLOGY's Water Quality Program funding website.
C. The RECIPIENT must complete ECOLOGY's "Federal Clean Water Act Section 319 Grant Load Reductions
Reporting Form" annually. This form is used to gather information on pollutant load reduction for each best
management practice (BMP) installed for the project. The RECIPIENT must submit this form to ECOLOGY's
Financial Manager by January 15 of each year, and at project close-out. ECOLOGY may hold reimbursements until the
RECIPIENT has comr leted and submitted the form to the financial manager. This form is available on our website.
SECTION 5: THE FOLLOWING CONDITIONS APPLY TO SECTION 319 FUNDED PROJECTS ONLY.
The RECIPIENT musi submit the following documents to ECOLOGY before this agreement is signed by ECOLOGY:
1. Federal Funding Accountability and Transparency Act (FFATA) Form
2. Clean Water Act Seion 319 Initial Data Reporting Sheet
Contact your ECOLO Y financial manager for the forms.
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 19 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
A. Disadvantaged Business Enterprise (DBE):
GENERAL COMPLIANCE, 40 CFR, Part 33 - The RECIPIENT agrees to comply with the requirements of EPA's
Program for Utilization of Small, Minority and Women's Business Enterprises (MBE/WBE) in procurement under
assistance agreements, contained in 40 CFR, Part 33.
FAIR SHARE OBJECTIVES, 40 CFR, Part 33, Subpart D - A RECIPIENT must negotiate with the appropriate EPA
award official or his/her designee, fair share objectives for MBE and WBE participation in procurement under the
financial assistance agreements.
Current Fair Share Objective/Goal - The dollar amount of this assistance agreement is over $250,000; or the total dollar
amount of all of the RECIPIENT's non -TAG assistance agreements from EPA in the current fiscal year is over
$250,000. The Washington State Department of Ecology has negotiated the following, applicable MBE/WBE fair share
objectives/goals with EPA as follows:
MBE: SUPPLIES 8.00%;SERVICES 10.00%; EQUIPMENT 8.00%; CONSTRUCTION 10.00%
WBE: SUPPLIES 4.00%; SERVICES 4.00%; EQUIPMENT 4.00%; CONSTRUCTION 6.00%
Negotiating Fair Share Objectives/Goals, 40 CFR, Section 33.404 - If the RECIPIENT has not yet negotiated its
MBE/WBE fair share objectives/goals, the RECIPIENT agrees to submit proposed MBE/WBE objectives/goals based
on an availability analysis, or disparity study, of qualified MBEs and "Es in their relevant geographic buying market
for construction, services, supplies and equipment.
The RECIPIENT agrees to submit proposed fair share objectives/goals, together with the supporting availability
analysis or disparity study, to the Regional MBE/WBE Coordinator within 120 days of its acceptance of the financial
assistance award. EPA shall respond to the proposed fair share objective/goals within 30 days of receiving the
submission. If proposed fair share objective/goals are not received within the 120 day time frame, the recipient may not
expend its EPA funds for procurements until the proposed fair share objective/goals are submitted.
SIX GOOD FAITH EFFORTS, 40 CFR, Part 33, Subpart C - Pursuant to 40 CFR, Section 33.301, the RECIPIENT
agrees to make the following good faith efforts whenever procuring construction, equipment, services and supplies
under an EPA financial assistance agreement, and to ensure that sub -recipients, loan recipients, and prime contractors
also comply. Records documenting compliance with the six good faith efforts shall be retained:
(a) Ensure DBEs are made aware of contracting opportunities to the fullest extent practicable through outreach and
recruitment activities. For Indian Tribal, State, Local and Government recipients, this shall include placing DBEs on
solicitation lists and soliciting them whenever they are potential sources.
(b) Make information on forthcoming opportunities available to DBEs and arrange time frames for contracts and
establish delivery schedules, where the requirements permit, in a way that encourages and facilitates participation by
DBEs in the competitive process. This includes, whenever possible, posting solicitations for bids or proposals for a
minimum of 30 calendar days before the bid or proposal closing date.
(c) Consider in the contracting process whether firms competing for large contracts could subcontract with DBEs. For
Indian Tribal, State and Local Government recipients, this shall include dividing total requirements when economically
feasible into smaller tasks or quantities to permit maximum participation by DBEs in the competitive process.
(d) Encourage contracting with a consortium of DBEs when a contract is too large for one of these firms to handle
WQC-2015-KitPHD-00157
Agreement No: WQ -2015-KitPHD-00157 Page 20 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITS AP PUBLIC HEALTH DISTRICT
individually.
(e) Use the services
Commerce.
(f) If the prime col
(e) of this section.
B. Funding Recognit
developed under this
assistance of the SBA and the Minority Business Development Agency of the Department of
awards subcontracts, require the prime contractor to take the steps in paragraphs (a) through
The RECIPIENT must use the following paragraph in all reports, documents, and signage
This project has been ded wholly or in part by the United States Environmental Protection Agency under an
assistance agreement tq the Washington State Department of Ecology. The contents of this document do not necessarily
reflect the views and p licies of the Environmental Protection Agency, nor does the mention of trade names or
commercial products constitute endorsement or recommendation for use.
C. Time Extension: T1 e RECIPIENT may request a one-time extension for up to 12 months. However, the time
extension cannot excee J the time limitation established in EPA's assistance agreement. In the event a time extension is
requested and approved by ECOLOGY, the RECIPIENT must complete all eligible work performed under this
agreement by the expiration date.
SECTION 6: THE FO�LOWING CONDITIONS APPLY TO STATE REVOLVING FUND (SRF) LOAN FUNDED
PROJECTS ONLY.
The RECIPIENT mustisubmit the following documents to ECOLOGY before this agreement is signed by ECOLOGY:
1. Opinion of RECIPI NT's Legal Council
2. Authorizing Ordinance or Resolution
3. Pre -Award Compliai ice Review Report for All Applicants Requesting Federal Assistance
4. Federal Funding Accountability and Transparency Act (FFATA) Form
5. Clean Water State R volving Fund Initial Data Reporting Sheet
A. Alteration and Elig bility of Project: During the term of this agreement, the RECIPIENT (1) shall not materially alter
the design or structura character of the project without the prior written approval of ECOLOGY and (2) shall take no
action which would ad ersely affect the eligibility of the project as defined by applicable funding program rules and
state statutes, or whict. would cause a violation of any covenant, condition, or provision herein.
B. American Iron and 3teel (Buy American): This loan provision applies to projects for the construction, alteration,
maintenance, or repair of a "treatment works" as defined in the Federal Water Pollution Control Act (33 USC 1381 et
seq.) The RECIPIENT shall ensure that all iron and steel products used in the project are produced in the United States.
Iron and Steel products means the following products made primarily of iron or steel: lined or unlined pipes and
fittings, manhole cove s and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves,
structural steel, reinfoiced precast concrete, and construction materials. The RECIPIENT may request waiver from this
requirement from the Administrator of the Environmental Protection Agency. The RECIPIENT must coordinate all
waiver requests through ECOLOGY. This provision does not apply if the engineering plans and specifications for the
project were approvedby ECOLOGY prior to January 17, 2014. ECOLOGY reserves the right to request
documentation of RE IPIENT'S compliance with this provision.
C. Authority of RECI IENT: This agreement is authorized by the Constitution and laws of the state of Washington,
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 21 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
including the RECIPIENT's authority, and by the RECIPIENT pursuant to the authorizing ordinance or resolution. The
RECIPIENT shall submit a copy of the authorizing ordinance or resolution to the ECOLOGY Financial Manager before
this agreement shall be signed by ECOLOGY.
D. Clean Water State Revolving Fund Data Reporting Sheet (Data Reporting Sheet): The RECIPIENT shall submit the
completed Data Reporting Sheet before this agreement is signed by ECOLOGY. ECOLOGY shall provide the Data
Reporting Sheet form to the RECIPIENT.
E. Disadvantaged Business Enterprise (DBE): General Compliance, 40 CFR, Part 33. The RECIPIENT agrees to
comply with the requirements of the Environmental Protection Agency's Program for Utilization of Small, Minority,
and Women's Business Enterprises (MBE/WBE) 40CFR, Part 33 in procurement under this agreement.
Non-discrimination Provision. The RECIPIENT shall not discriminate on the basis of race, color, national origin or sex
in the performance of this agreement. The RECIPIENT shall carry out applicable requirements of 40 CFR Part 33 in the
award and administration of contracts awarded under EPA financial assistance agreements. Failure by the RECIPIENT
to carry out these requirements is a material breach of this agreement which may result in the termination of this
contract or other legally available remedies.
The RECIPIENT shall comply with all federal and state nondiscrimination laws, including, but not limited to Title VI
and VII of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education
Amendments of 1972, the Age Discrimination Act of 1975, and Chapter 49.60 RCW, Washington's Law Against
Discrimination, and 42 U.S.C. 12101 et seq, the Americans with Disabilities Act (ADA).
In the event of the RECIPIENT's noncompliance or refusal to comply with any applicable nondiscrimination law,
regulation, or policy, this agreement may be rescinded, canceled, or terminated in whole or in part, and the RECIPIENT
may be declared ineligible for further funding from ECOLOGY. The RECIPIENT shall, however, be given a
reasonable time in which to cure this noncompliance.
Fair Share Objective/Goals, 40 CFR, Part 33, Subpart D. If the dollar amount of this agreement or the total dollar
amount of all of the RECIPIENT's financial assistance agreements in the current federal fiscal year from the Revolving
Fund is over $250,000, the RECIPIENT accepts the applicable MBE/WBE fair share objectives/goals negotiated with
EPA by the Office of Minority Women Business Enterprises as follows:
Construction 10.00% MBE 6.00% WBE
Supplies 8.00% MBE 4.00% WBE
Services 10.00% MBE 4.00% WBE
Equipment 8.00% MBE 8.00% WBE
By signing this agreement the RECIPIENT is accepting the fair share objectives/goals stated above and attests to the
fact that it is purchasing the same or similar construction, supplies, services and equipment, in the same or similar
relevant geographic buying market as Office of Minority Women Business Enterprises.
Six Good Faith Efforts, 40 CFR, Part 33, Subpart C. The RECIPIENT agrees to make the following good faith efforts
whenever procuring construction, equipment, services and supplies under this agreement. Records documenting
compliance with the following six good faith efforts shall be retained:
1) Ensuring Disadvantaged Business Enterprises are made aware of contracting opportunities to the fullest extent
practicable through outreach and recruitment activities. For Indian Tribal, State and Local and Government
RECIPIENTS, this shall include placing Disadvantaged Business Enterprises on solicitation lists and soliciting them
WQC-2015-KitPHD-00157
Agreement No: WQ('-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KM AP PUBLIC HEALTH DISTRICT
whenever they are potential sources. Qualified Women and Minority business enterprises may be found on the Internet
at www.omwbe.wa.goor by contacting the Washington State Office of Minority and Women's Enterprises at
866-208-1064.
2) Making information on forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time
frames for contracts ani I establish delivery schedules, where the requirements permit, in a way that encourages and
facilitates participation by Disadvantaged Business Enterprises in the competitive process. This includes, whenever
possible, posting solicil ations for bids or proposals for a minimum of thirty (3 0) calendar days before the bid or
proposal closing date.
3) Considering in the c ntracting process whether firms competing for large contracts could subcontract with
Disadvantaged Busine4s Enterprises. For Indian Tribal, State and Local Government RECIPIENTs, this shall include
dividing total requirements when economically feasible into smaller tasks or quantities to permit maximum
participation by Disad antaged Business Enterprises in the competitive process.
4) Encourage contracts g with a consortium of Disadvantaged Business Enterprises when a contract is too large for one
of these funis to hand]4 individually.
5) Using services and4ssistance of the Small Business Administration and the Minority Business Development Agency
of the Department of ommerce.
6) If the prime contractor awards subcontracts, requiring the subcontractors to take the five good faith efforts in
paragraphs 1 through above.
MBE/WBE Reporting 40 CFR, Part 33, Sections 33.302, 33.502 and 33.503. The RECIPIENT agrees to provide
forms: EPA Form 6100-2 DBE Subcontractor Participation Form and EPA Form 6100-3 DBE Subcontractor
Performance Form to E 11 its DBE subcontractors, and EPA Form 6100-4 DBE Subcontractor Utilization Form to all its
prime contractors. These forms are available on ECOLOGY'S Water Quality Program funding website.
EPA Form 6100-2 —
subcontractors may
concerns with their 1
EPA Form 6100-3 —
contract.
EPA Form 6100-4 —
contract.
The RECIPIENT also
request.
Contract Administrati
administration provisi
identified loans also c
The RECIPIENT sl
engineers, vendors,
WQC-2015-KitPHD-00157
RECIPIENT must document that this form was received by DBE subcontractor. DBE
fit the completed form to the EPA Region 10 DBE coordinator in order to document issues or
or payment for a subcontract.
form must be completed by DBE subcontractor(s), submitted with bid, and kept with the
form must be completed by the prime contractor, submitted with bid, and kept with the
to submit ECOLOGY'S MBE/WBE participation report Form D with each payment
Provisions, 40 CFR, Section 33.302. The RECIPIENT agrees to comply with the contract
s of 40 CFR, Section 33.302. The RECIPIENT also agrees to ensure that RECIPIENTs of
with provisions of 40CFR, Section 33.302.
include the following terms and conditions in contracts with all contractors, subcontractors,
I any other entity for work or services pertaining to this agreement.
Page 22 of 39
Agreement No: WQC-2015-KitPHD-00157 Page 23 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
"The Contractor will not discriminate on the basis of race, color, national origin or sex in the performance of this
Contract. The Contractor will carry out applicable requirements of 40 CFR Part 33 in the award and administration of
contracts awarded under Environmental Protection Agency financial agreements. Failure by the Contractor to carry out
these requirements is a material breach of this Contract which may result in termination of this Contract or other legally
available remedies."
Bidder List, 40 CFR, Section 33.501(b) and (c). The RECIPIENT agrees to create and maintain a bidders list. The
bidders list shall include the following information for all firms that bid or quote on prime contracts, or bid or quote
subcontracts, including both MBE/WBEs and non-MBE/WBEs.
1. Entity's name with point of contact
2. Entity's mailing address, telephone number, and e-mail address
3. The procurement on which the entity bid or quoted, and when
4. Entity's status as an MBE/WBE or non-MBE/WBE
F. Electronic and Information Technology (EIT) Accessibility: RECIPIENTS shall ensure that loan funds provided
under this agreement for costs incurred in the development or purchase of EIT systems or products provide individuals
with disabilities reasonable accommodations and an equal and effective opportunity to benefit from or participate in a
program, including those offered through electronic and information technology as per Section 504 of the
Rehabilitation Act, codified in 40 CFR Part 7. Systems or products funded under this agreement must be designed to
meet the diverse needs of users without barriers or diminished function or quality. Systems shall include usability
features or functions that accommodate the needs of persons with disabilities, including those who use assistive
technology.
G. Free Service: The RECIPIENT shall not furnish utility service to any customer free of charge if providing that free
service affects the RECIPIENT's ability to meet the obligations of this agreement.
H. Insurance: The RECIPIENT shall at all times carry fire and extended coverage, public liability and property damage,
and such other forms of insurance with responsible insurers and with policies payable to the RECIPIENT on such of the
buildings, equipment, works, plants, facilities, and properties of the Utility as are ordinarily carried by municipal or
privately -owned utilities engaged in the operation of like systems, and against such claims for damages as are ordinarily
carried by municipal or privately -owned utilities engaged in the operation of like systems, or it shall self -insure or
participate in an insurance pool or pools with reserves adequate, in the reasonable judgment of the RECIPIENT, to
protect it against loss.
I. Loan Interest Rate and Terms: This loan agreement shall remain in effect until the date of final repayment of the loan,
unless terminated earlier according to the provisions herein.
When the Project Completion Date has occurred, ECOLOGY and the RECIPIENT shall execute an amendment to this
loan agreement which details the final loan amount (Final Loan Amount), and ECOLOGY shall prepare a final loan
repayment schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and
all accrued interest to the computation date.
The Estimated Loan Amount and the Final Loan Amount (in either case, as applicable, a "Loan Amount") shall bear
interest based on the interest rate identified in this agreement as the "Effective Interest Rate," per annum, calculated on
the basis of a 365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly
based on the date that each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal
installments semiannually over the term of this loan "Loan Term" as outlined in this agreement.
J. Loan Repayment:
Sources of Loan Repayment
WQC-2015-KitPHD-00157
Agreement No:
Project Title:
Recipient Name:
1. Nature of
below and to perform ,
absolute and unconditi
secure the repayment c
agreements, and attach
2. For General
3. For General Oblig,
RECIPIENT payable
provided by law with
the RECIPIENT.
15-KitPHD-00157 Page 24 of 39
Clean Water Revolving Loan Program
PUBLIC HEALTH DISTRICT
C's Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified
d observe all of the other agreements and obligations on its part contained herein shall be
lal, and shall not be subject to diminution by setoff, counterclaim, or abatement of any kind. To
the loan from ECOLOGY, the RECIPIENT agrees to comply with all of the covenants,
contained herein.
This loan is a General Obligation Debt of the RECIPIENT.
i Payable from Special Assessments. This loan is a General Obligation Debt of the
n special assessments to be imposed within the constitutional and statutory tax limitations
a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of
4. For Revenue -Secured: Lien Position. This loan is a Revenue -Secured Debt of the RECIPIENT's Utility. This loan
shall constitute a lien aj id charge upon the Net Revenue junior and subordinate to the lien and charge upon such Net
Revenue of any Senior Lien Obligations.
In addition, if this loan is also secured by Utility Local Improvement Districts (ULID) Assessments, this loan shall
constitute a lien upon TfLID Assessments in the ULID prior and superior to any other charges whatsoever.
5. Other Sources of
it.
6. Defeasance of the
shall not affect, an e
If the RECIPIENT
upon their receipt,
(i) The Loan Amount
(ii) Any other obligati
ECOLOGY finds that
Failure to repay the L
repayment shall incur
7. Refinancing or
give ECOLOGY
Method and Conditi
1. Semiannual Payme
principal and interest
initiation of operation
Thereafter, equal
If the due date for any
agencies, the payment
W QC -2015-K itPHD-00157
The RECIPIENT may repay any portion of the loan from any funds legally available to
So long as ECOLOGY shall hold this loan, the RECIPIENT shall not be entitled to, and
Defeasance of the loan. The RECIPIENT shall not advance refund the loan.
, or advance refunds the loan, it shall be required to use the proceeds thereof immediately
with other available RECIPIENT funds, to repay both of the following:
interest
of the RECIPIENT to ECOLOGY under this agreement, unless in its sole discretion
from those additional sources would not be in the public interest.
Amount plus interest within the time specified in ECOLOGY's notice to make such
Charges and shall be treated as a Loan Default.
Repayment of the Project. So long as ECOLOGY shall hold this loan, the RECIPIENT shall
days written notice if the RECIPIENT intends to refinance or make early repayment of the loan.
on Repayments
. Notwithstanding any other provision of this agreement, the first semiannual payment of
this loan shall be due and payable no later than one year after the project completion date or
whichever comes first.
shall be due every six months.
mnual payment falls on a Saturday, Sunday, or designated holiday for Washington State
be due on the next business day for Washington State agencies.
Agreement No: WQC-2015-KitPHD-00157 Page 25 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
Payments shall be mailed to:
Department of Ecology
Cashiering Unit
P.O. Box 47611
Olympia WA 98504-7611
In lieu of mailing payments, electronic fund transfers can be arranged by working with ECOLOGY's Financial
Manager.
No change to the amount of the semiannual principal and interest payments shall be made without a formal amendment
to this agreement. The RECIPIENT shall continue to make semiannual payments based on this agreement until the
amendment is effective, at which time the RECIPIENT's payments shall be made pursuant to the amended agreement.
2. Late Charges. If any amount of the Final Loan Amount or any other amount owed to ECOLOGY pursuant to this
agreement remains unpaid after it becomes due and payable, ECOLOGY may assess a late charge. The late charge shall
be one percent per month on the past due amount starting on the date the debt becomes past due and until it is paid in
full.
3. Repayment Limitations. Repayment of the loan is subject to the following additional limitations, among others:
those on defeasance, refinancing and advance refunding, termination, and default and recovery of payments.
4. Prepayment of Loan. So long as ECOLOGY shall hold this loan, the RECIPIENT may prepay the entire unpaid
principal balance of and accrued interest on the loan or any portion of the remaining unpaid principal balance of the
Loan Amount. Any prepayments on the loan shall be applied first to any accrued interest due and then to the
outstanding principal balance of the Loan Amount. If the RECIPIENT elects to prepay the entire remaining unpaid
balance and accrued interest, the RECIPIENT shall first contact ECOLOGY's Revenue/Receivable Manager of the
Fiscal Office.
K. Loan Security
Due Regard: For loans secured with a Revenue Obligation: The RECIPIENT shall exercise due regard for Maintenance
and Operation Expense and the debt service requirements of the Senior Lien Obligations and any other outstanding
obligations pledging the Gross Revenue of the Utility, and it has not obligated itself to set aside and pay into the loan
Fund a greater amount of the Gross Revenue of the Utility than, in its judgment, shall be available over and above such
Maintenance and Operation Expense and those debt service requirements.
Levy and Collection of Taxes (if used to secure the repayment of the loan): For so long as the loan is outstanding, the
RECIPIENT irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory
tax limitations provided by law without a vote of its electors on all of the taxable property within the boundaries of the
RECIPIENT in an amount sufficient, together with other money legally available and to be used therefore, to pay when
due the principal of and interest on the loan, and the full faith, credit and resources of the RECIPIENT are pledged
irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest.
Not an Excess Indebtedness: For loans secured with a general obligation pledge or a general obligation pledge on
special assessments: The RECIPIENT agrees that this agreement and the loan to be made do not create an indebtedness
of the RECIPIENT in excess of any constitutional or statutory limitations.
WQC-2015-KitPHD-00157
Agreement No: WQ -2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
Pledge of Net Revenue and ULID Assessments in the ULID (if used to secure the repayment of this loan): For so long
as the loan is outstandiTe
g, the RECIPIENT irrevocably pledges the Net Revenue of the Utility, including applicable
ULID Assessments in ULID, to pay when due the principal of and interest on the loan.
Reserve Requirement: For loans that are Revenue -Secured Debt with terms greater than five years, the RECIPIENT
must accumulate a reserve for the loan equivalent to at least the Average Annual Debt Service on the loan during the
first five years of the repayment period of the loan. This amount shall be deposited in a Reserve Account in the Loan
Fund in approximately equal annual payments commencing within one year after the initiation of operation or the
project completion dat , whichever comes first.
"Reserve Account" mems,
for a loan that constitutes Revenue -Secured Debt, an account of that name created in the
Loan Fund to secure th
payment of the principal and interest on the loan. The amount on deposit in the Reserve
Account may be applied
by the RECIPIENT (1) to make, in part or in full, the final repayment to ECOLOGY of the
loan amount or, (2) if rot
so applied, for any other lawful purpose of the RECIPIENT once the Loan Amount, plus
interest and any other 9mounts
owing to ECOLOGY, have been paid in full.
Page 26 of 39
Utility Local Improvement District (ULID) Assessment Collection (if used to secure the repayment of the loan): All
ULID Assessments in I he ULID shall be paid into the loan Fund and used to pay the principal of and interest on the
loan. The ULID Asses ments in the ULID may be deposited into the Reserve Account to satisfy a Reserve Requirement
if a Reserve Requirement is applicable.
L. Maintenance and Operation of a Funded Utility: The RECIPIENT shall at all times maintain and keep a funded
Utility in good repair, working order and condition and also shall at all times operate the Utility and the business in an
efficient manner and al a reasonable cost.
M. Opinion of RECIPNT's Legal Counsel: The RECIPIENT must submit an "Opinion of Legal Counsel to the
RECIPIENT" to ECO OGY before this agreement shall be signed. ECOLOGY will provide the form.
N. Payment to Consulants: The RECIPIENT shall ensure that loan funds provided under this agreement to reimburse
for costs incurred by ir dividual consultants (excluding overhead) is limited to the maximum daily rate for Level IV of
the Executive Schedul (formerly GS -18), to be adjusted annually. This limit applies to consultation services of
designated individuals with specialized skills who are paid at a daily or hourly rate. This rate does not include
transportation and subsistence costs for travel performed. Contracts for services awarded using the procurement
requirements in 40 CF Parts 30 or 31, as applicable, are not affected by this limitation unless the terms of the contract
provide the RECIPIEls T with responsibility for the selection, direction, and control of the individuals who shall be
providing services und vr the contract at an hourly or daily rate of compensation. See 40 CFR 30.27(b) or 40 CFR
31.360) for additional information.
O. Prevailing Wage (E avis -Bacon Act): The RECIPIENT agrees, by signing this agreement, to comply with the
Davis -Bacon Act prev iling wage requirements. This applies to the construction, alteration, and repair of treatment
works carried out in w iole or in part with assistance made available by the State Revolving Fund as authorized by
Section 513, title VI o the Federal Water Pollution Control Act (33 U.S.C. 1372). Laborers and mechanics employed
by contractors and subpontractors shall be paid wages not less often than once a week and at rates not less than those
prevailing on projects Of a character similar in the locality as determined by the Secretary of Labor.
The RECIPIENT shall obtain the wage determination for the area in which the project is located prior to issuing
requests for bids, proposals, quotes or other methods for soliciting contracts (solicitation). These wage determinations
shall be incorporated into solicitations and any subsequent contracts. The RECIPIENT shall ensure that the required
EPA contract language regarding Davis -Bacon Wages is in all contracts and sub contracts in excess of $2,000. The
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 27 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
RECIPIENT shall maintain records sufficient to document compliance with the Davis -Bacon Act, and make such
records available for review upon request.
The RECIPIENT also agrees, by signing this agreement, to comply with State Prevailing Wages on Public Works,
Chapter 39.12 RCW, as applicable. Compliance may include the determination whether the project involves "public
work" and inclusion of the applicable prevailing wage rates in the bid specifications and contracts. The RECIPIENT
agrees to maintain records sufficient to evidence compliance with Chapter 39.12 RCW, and make such records
available for review upon request.
P. Litigation; Authority: No litigation is now pending, or to the RECIPIENT's knowledge, threatened, seeking to
restrain, or enjoin:
(i) the execution of this agreement; or
(ii) the fixing or collection of the revenues, rates, and charges or the formation of the ULID and the levy and collection
of ULID Assessments therein pledged to pay the principal of and interest on the loan (for revenue secured lien
obligations); or
(iii) the levy and collection of the taxes pledged to pay the principal of and interest on the loan (for general
obligation -secured loans and general obligation payable from special -assessment -secured loans); or
(iv) in any manner questioning the proceedings and authority under which the agreement, the loan, or the project are
authorized. Neither the corporate existence or boundaries of the RECIPIENT nor the title of its present officers to their
respective offices is being contested. No authority or proceeding for the execution of this agreement has been repealed,
revoked, or rescinded.
Q. Representations and Warranties: The RECIPIENT represents and warrants to ECOLOGY as follows:
Application: Material Information. All information and materials submitted by the RECIPIENT to ECOLOGY in
connection with its loan application were, when made, and are, as of the date the RECIPIENT signs this agreement, true
and correct. There is no material adverse information relating to the RECIPIENT, the project, the loan, or this
agreement known to the RECIPIENT which has not been disclosed in writing to ECOLOGY.
Existence; Authority. It is a duly formed and legally existing municipal corporation or political subdivision of the state
of Washington or a federally recognized Indian Tribe. It has full corporate power and authority to execute, deliver, and
perform all of its obligations under this agreement and to undertake the project identified herein.
Certification. Each payment request shall constitute a certification by the RECIPIENT to the effect that all
representations and warranties made in this loan agreement remain true as of the date of the request and that no adverse
developments, affecting the financial condition of the RECIPIENT or its ability to complete the project or to repay the
principal of or interest on the loan, have occurred since the date of this loan agreement. Any changes in the
RECIPIENT's financial condition shall be disclosed in writing to ECOLOGY by the RECIPIENT in its request for
payment.
R. Sale or Disposition of Utility: The RECIPIENT shall not sell, transfer, or otherwise dispose of any of the works,
plant, properties, facilities, or other part of the Utility, or any real or personal property comprising a part of the Utility
unless one of the following applies:
1. The facilities or property transferred are not material to the operation of the Utility; or have become unserviceable,
WQC-2015-KitPHD-00157
Agreement No: WQ -2015-KitPHD-00157
Project Title: Regii nal Clean Water Revolving Loan Program
Recipient Name: KM AP PUBLIC HEALTH DISTRICT
inadequate, obsolete, oi unfit to be used in the operation of the Utility; or are no longer necessary, material, or useful to
the operation of the Utility.
2. The aggregate depre rated cost value of the facilities or property being transferred in any fiscal year comprises no
more than three verceni of the total assets of the Utility.
3. The RECIPIENT receives from the transferee an amount which shall be in the same proportion to the net amount of
Senior Lien Obligation and this loan then outstanding (defined as the total amount outstanding less the amount of cash
and investments in the and and loan funds securing such debt) as the Gross Revenue of the Utility from the portion of
the Utility sold or disposed of for the preceding year bears to the total Gross Revenue for that period.
The proceeds of any tr sfer under this paragraph shall be used (1) to redeem promptly or irrevocably set aside for the
redemption of, Senior Lien Obligations and to redeem promptly the loan; or (2) to provide for part of the cost of
additions to and betterr ients and extensions of the Utility.
S. Sewer -Use Ordinane or Resolution: If not already in existence, the RECIPIENT shall adopt and shall enforce a
sewer -use ordinance o resolution. The sewer use ordinance must include provisions to:
1) Prohibit the introduction of toxic or hazardous wastes into the RECIPIENT's sewer system.
2) Prohibit inflow of
3) Require that new severs and connections be properly designed and constructed.
4) Require all existing land future residents to connect to the sewer system. Such ordinance or resolution shall be
submitted to ECOLOOY upon request by ECOLOGY.
T. Termination and
Termination and Default Events
1. For Insufficient EC LOGY or RECIPIENT Funds. ECOLOGY may terminate this loan agreement for insufficient
ECOLOGY or RECIPIENT funds.
2. For Failure to Comr�lence Work. ECOLOGY may terminate this loan agreement for failure of the RECIPIENT to
commence project wo .
3. Past Due Payments. The RECIPIENT shall be in default of its obligations under this loan agreement when any loan
repayment becomes 6q days past due.
4. Other Cause. Theo ligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance in full
by the RECIPIENT of all of its obligations under this loan agreement. The RECIPIENT shall be in default of its
obligations under this oan agreement if, in the opinion of ECOLOGY, the RECIPIENT has unjustifiably failed to
perform any obligatiox i required of it by this loan agreement.
Page 28 of 39
Procedures for Termination. If this loan agreement is terminated prior to project completion, ECOLOGY shall provide
to the RECIPIENT a written notice of termination at least five working days prior to the effective date of termination
(the "Termination Date"). The written notice of termination by the ECOLOGY shall specify the Termination Date and,
when applicable, the date by which the RECIPIENT must repay any outstanding balance of the loan and all accrued
interest (the "Terminalhion Payment Date").
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 29 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
Termination and Default Remedies
No Further Payments. On and after the Termination Date, or in the event of a default event, ECOLOGY may, at its sole
discretion, withdraw the loan and make no further payments under this agreement.
Repayment Demand. In response to an ECOLOGY initiated termination event, or in response to a loan default event,
ECOLOGY may at its sole discretion demand that the RECIPIENT repay the outstanding balance of the Loan Amount
and all accrued interest.
Interest after Repayment Demand. From the time that ECOLOGY demands repayment of funds, amounts owed by the
RECIPIENT to ECOLOGY shall accrue additional interest at the rate of one percent per month, or fraction thereof.
Accelerate Repayments. In the event of a default, ECOLOGY may at its sole discretion declare the principal of and
interest on the loan immediately due and payable, subject to the prior lien and charge of any outstanding Senior Lien
Obligations upon the Net Revenue. Repayments not made immediately upon such acceleration shall incur late charges.
Late Charges. All amounts due to ECOLOGY and not paid by the RECIPIENT by the Termination Payment Date or
after acceleration following a default event, as applicable, shall incur late charges.
Intercept State Funds. In the event of a default event and in accordance with Chapter 90.50A.060 RCW, "Defaults,"
any state funds otherwise due to the RECIPIENT may, at ECOLOGY's sole discretion, be withheld and applied to the
repayment of the loan.
Property to ECOLOGY. In the event of a default event and at the option of ECOLOGY, any personal property
(equipment) acquired under this agreement may, in ECOLOGY's sole discretion, become ECOLOGY's property. In
that circumstance, ECOLOGY shall reduce the RECIPIENT's liability to repay money by an amount reflecting the fair
value of such property.
Documents and Materials. If this agreement is terminated, all finished or unfinished documents, data studies, surveys,
drawings, maps, models, photographs, and reports or other materials prepared by the RECIPIENT shall, at the option of
ECOLOGY, become ECOLOGY property. The RECIPIENT shall be entitled to receive just and equitable
compensation for any satisfactory work completed on such documents and other materials.
Collection and Enforcement Actions. In the event of a default event, the state of Washington reserves the right to take
any actions it deems necessary to collect the amounts due, or to become due, or to enforce the performance and
observance of any obligation by the RECIPIENT, under this agreement.
Fees and Expenses. In any action to enforce the provisions of this agreement, reasonable fees and expenses of attorneys
and other reasonable expenses (including, without limitation, the reasonably allocated costs of legal staff) shall be
awarded to the prevailing party as that term is defined in Chapter 4.84.330 RCW.
Damages. Notwithstanding ECOLOGY's exercise of any or all of the termination or default remedies provided in this
agreement, the RECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by ECOLOGY
and/or the state of Washington because of any breach of this agreement by the RECIPIENT. ECOLOGY may withhold
payments for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from the
RECIPIENT is determined.
U. User -Charge System: The RECIPIENT certifies that it has the legal authority to establish and implement a
WQC-2015-KitPHD-00157
Agreement No: WQ -2015-KitPHD-00157 Page 30 of 39
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
user -charge system and shall adopt a system of user -charges to assure that each user of the utility shall pay its
proportionate share of 1he cost of operation and maintenance, including replacement during the design life of the
project.
In addition, the RECIP ENT shall regularly evaluate the user -charge system, at least annually, to ensure the system
provides adequate reveues necessary to operate and maintain the utility, to establish a reserve to pay for replacement,
to establish the require Loan Reserve Account, and to repay the loan.
GENERAL FEDER4L CONDITIONS
If a portion or all of t�e funds for this agreement are provided through federal funding sources or this
agreement is used to atch a federal grant award, the following terms and conditions apply to you.
i. The RECIPIE4T/CONTRACTOR, by signing this agreement, certifies that it is not suspended, debarred,
proposed for debarment, declared ineligible or otherwise excluded from contracting with the federal
government, o from receiving contracts paid for with federal funds. If the RECIPIENT/CONTRACTOR is
unable to certi to the statements contained in the certification, they must provide an explanation as to why they
cannot.
2. The RECIPIE T/CONTRACTOR shall provide immediate written notice to ECOLOGY if at any time the
RECIPIENT/ ONTRACTOR learns that its certification was erroneous when submitted or had become
erroneous by wason of changed circumstances.
3. The terms cov red transaction, debarred, suspended, ineligible, lower tier covered transaction, participant,
person, prim covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have
the meaning si t out in the Definitions and Coverage sections of rules implementing Executive Order 12549.
You may cont ct the department for assistance in obtaining a copy of those regulations..
4. The RECIPIE qT/CONTRACTOR agrees it shall not knowingly enter into any lower tier covered transaction
with a person ho is proposed for debarment under the applicable Code of Federal Regulations, debarred,
suspended, de tared ineligible, or voluntarily excluded from participation in this covered transaction.
5. The RECIPIE14T/CONTRACTOR further agrees by signing this agreement, that it will include this clause titled
"CERTIFICA 7ION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY
EXCLUSION " without modification in all lower tier covered transactions and in all solicitations for lower tier
covered transactions.
6. Pursuant to 2 FR180.330, the RECIPIENT/CONTRACTOR is responsible for ensuring that any lower tier
covered transaction complies with certification of suspension and debarment requirements.
7. RECIPIENT/ ONTRACTOR acknowledges that failing to disclose the information required in the Code of
Federal Regulations may result in the delay or negation of this funding agreement, or pursuance of legal
remedies, incl iding suspension and debarment.
8. RECIPIENT/ ONTRACTOR agrees to keep proof in its agreement file, that it, and all lower tier recipients or
contractors, not suspended or debarred, and will make this proof available to ECOLOGY before requests for
reimburseme s will beapproved for payment. RECIPIENT/CONTRACTOR must run a search in
<htt://www. ov> and print a copy of completed searches to document proof of compliance.
RECIPIENT must complete the FFATA Data Collection Form (ECY 070-395) and return it with the signed
agreement to OOLOGY.
Any RECIPI T that meets each of the criteria below must also report compensation for its five top executives,
using FFATA ata Collection Form.
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 31 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
Receives more than $25,000 in federal funds under this award; and
Receives more than 80 percent of its annual gross revenues from federal funds; and
Receives more than $25,000,000 in annual federal funds
ECOLOGY will not pay any invoice until it has received a completed and signed FFATA Data Collection Form.
ECOLOGY is required to report the FFATA information for federally funded agreements, including the required
DUNS number, at www.fsrs. og v <http://www.fsrs.gov> within 30 days of agreement signature. The FFATA
information will be available to the public at www.usaspending.gov <biip://www.usaVending.gov>.
For more details on FFATA requirements, see www.fsrs.gov <hM2://www.fsrs.i4ov>.
GENERAL TERMS AND CONDITIONS
1. ADMINISTRATIVE REQUIREMENTS
a) RECIPIENT shall follow the "Administrative Requirements for Recipients of Ecology Grants and Loans — EAGL
Edition". https:Hfortress.wa.gov/ecy/publications/SummaryPages/1401002.htm]
b) RECIPIENT shall complete all activities funded by this Agreement and be fully responsible for the proper
management of all funds and resources made available under this Agreement.
c) RECIPIENT agrees to take complete responsibility for all actions taken under this Agreement, including ensuring
all subgrantees and contractors comply with the terms and conditions of this Agreement. ECOLOGY reserves the right
to request proof of compliance by subgrantees and contractors.
d) RECIPIENT's activities under this Agreement shall be subject to the review and approval by ECOLOGY for the
extent and character of all work and services.
2. AMENDMENTS AND MODIFICATIONS
This Agreement may be altered, amended, or waived only by a written amendment executed by both parties. No
subsequent modification(s) or amendment(s) of this Agreement will be of any force or effect unless in writing and
signed by authorized representatives of both parties. ECOLOGY and the RECIPIENT may change their respective staff
contacts and administrative information without the concurrence of either party.
3. ARCHAEOLOGICAL AND CULTURAL RESOURCES
RECIPIENT shall take reasonable action to avoid, minimize, or mitigate adverse effects to archeological or cultural
resources. Activities associated with archaeological and cultural resources are an eligible reimbursable cost subject to
approval by ECOLOGY.
RECIPIENT shall:
a) Immediately cease work and notify ECOLOGY if any archeological or cultural resources are found while
conducting work under this Agreement.
b) Immediately notify the Department of Archaeology and Historic Preservation at (360) 586-3064, in the event
historical or cultural artifacts are discovered at a work site.
c) Comply with Governor Executive Order 05-05, Archaeology and Cultural Resources, for any capital construction
projects prior to the start of any work.
d) Comply with RCW 27.53, Archaeological Sites and Resources, for any work performed under this Agreement, as
applicable. National Historic Preservation Act (NHPA) may require the RECIPIENT to obtain a permit pursuant to
Chapter 27.53 RCW prior to conducting on-site activity with the potential to impact cultural or historic properties.
WQC-2015-KitPHD-00157
Agreement No: WQ 2015-KitPHD-00157 Page 32 of 39
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
4. ASSIGNMENT
No right or claim of thi RECIPIENT arising under this Agreement shall be transferred or assigned by the RECIPIENT.
RECIPIENT shall ma4 every effort to maintain effective communications with the RECIPIENT's designees,
ECOLOGY, all affecteil local, state, or federal jurisdictions, and any interested individuals or groups.
6. COMPENSATIO11,
a) Any work perform , -d prior to effective date of this Agreement will beat the sole expense and risk of the
RECIPIENT. ECOLO 3Y must sign the Agreement before any payment requests can be submitted.
b) Payments will be made on a reimbursable basis for approved and completed work as specified in this Agreement.
c) RECIPIENT is resonsible to understand if costs are eligible. Any questions regarding eligibility should be
clarified with ECO LO Y prior to incurring costs. Costs that are conditionally eligible may require approval by
ECOLOGY prior to p chase.
d) RECIPIENT shall iot invoice more than once per month unless agreed on by ECOLOGY.
e) ECOLOGY will n4 t process payment requests without the proper reimbursement forms, Progress Report and
supporting documentat on. ECOLOGY will provide instructions for submitting payment requests.
f) ECOLOGY will p y the RECIPIENT thirty (30) days after receipt of a properly completed request for payment.
g) RECIPIENT will rceive payment through Washington State Department of Enterprise Services' Statewide Payee
Desk. RECIPIENT m st register as a payee by submitting a Statewide Payee Registration form and an IRS W-9 form at
the website, http://wwi i.des.wa.gov/services/ContractingPurchasing/Business/VendorPay/Pages/default.aspx. For any
questions about the ve dor registration process contact the Statewide Payee Help Desk at (360) 407-8180 or email
payeehelpdesk@des.w a.gov.
h) ECOLOGY may, tits sole discretion, withhold payments claimed by the RECIPIENT if the RECIPIENT fails to
satisfactorily comply with any term or condition of this Agreement.
i) Monies withheld ECOLOGY may be paid to the RECIPIENT when the work described herein, or a portion
thereof, have been completed if, at ECOLOGY's sole discretion, such payment is reasonable and approved according to
this Agreement and, as appropriate, or upon completion of an audit as specified herein.
j) RECIPIENT should submit final requests for compensation within thirty (30) days after the expiration date of this
Agreement. Failure to pomply may result in delayed reimbursement.
7. COMPLIANCE ITH ALL LAWS
RECIPIENT agrees to comply fully with all applicable Federal, State and local laws, orders, regulations, and permits
related to this Agreement, including but not limited to:
a) RECIPIENT agrees to comply with all applicable laws, regulations, and policies of the United States and the State
of Washington which affect wages and job safety.
b) RECIPIENT agrees to be bound by all federal and state laws, regulations, and policies against discrimination.
c) RECIPIENT certifies full compliance withal] applicable state industrial insurance requirements.
d) RECIPIENT agrees to secure and provide assurance to ECOLOGY that all the necessary approvals and permits
required by authorities having jurisdiction over the project are obtained. RECIPIENT must include time in their project
timeline for the permit and approval processes.
ECOLOGY shall have the right to immediately terminate for cause this Agreement as provided herein if the
RECIPIENT fails to c mply with above requirements.
If any provision of thiAgreement violates any statute or rule of law of the state of Washington, it is considered
modified to conform tI that statute or rule of law.
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 33 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
8. CONFLICT OF INTEREST
RECIPIENT and ECOLOGY agree that any officer, member, agent, or employee, who exercises any function or
responsibility in the review, approval, or carrying out of this Agreement, shall not have any personal or financial
interest, direct or indirect, nor affect the interest of any corporation, partnership, or association in which he/she is a part,
in this Agreement or the proceeds thereof.
9. CONTRACTING FOR GOODS AND SERVICES
RECIPIENT may contract to buy goods or services related to its performance under this Agreement. RECIPIENT shall
award all contracts for construction, purchase of goods, equipment, services, and professional architectural and
engineering services through a competitive process, if required by State law. RECIPIENT is required to follow
procurement procedures that ensure legal, fair, and open competition.
RECIPIENT must have a standard procurement process or follow current state procurement procedures. RECIPIENT
may be required to provide written certification that they have followed their standard procurement procedures and
applicable state law in awarding contracts under this Agreement.
ECOLOGY reserves the right to inspect and request copies of all procurement documentation, and review procurement
practices related to this Agreement. Any costs incurred as a result of procurement practices not in compliance with
state procurement law or the RECIPIENT's normal procedures may be disallowed at ECOLOGY's sole discretion.
10. DISPUTES
When there is a dispute with regard to the extent and character of the work, or any other matter related to this
Agreement the determination of ECOLOGY will govern, although the RECIPIENT shall have the right to appeal
decisions as provided for below:
a) RECIPIENT notifies the funding program of an appeal request.
b) Appeal request must be in writing and state the disputed issue(s).
c) RECIPIENT has the opportunity to be heard and offer evidence in support of its appeal.
d) ECOLOGY reviews the RECIPIENT's appeal.
e) ECOLOGY sends a written answer within ten (10) business days, unless more time is needed, after concluding the
review.
The decision of ECOLOGY from an appeal will be final and conclusive, unless within thirty (30) days from the date of
such decision, the RECIPIENT furnishes to the Director of ECOLOGY a written appeal. The decision of the Director or
duly authorized representative will be final and conclusive.
The parties agree that this dispute process will precede any action in a judicial or quasi-judicial tribunal.
Appeals of the Director's decision will be brought in the Superior Court of Thurston County. Review of the Director's
decision will not be taken to Environmental and Land Use Hearings Office.
Pending final decision of a dispute, the RECIPIENT agrees to proceed diligently with the performance of this
Agreement and in accordance with the decision rendered.
Nothing in this contract will be construed to limit the parties' choice of another mutually acceptable method, in addition
to the dispute resolution procedure outlined above.
11. ENVIRONMENTAL STANDARDS
a) RECIPIENTS who collect environmental -monitoring data must provide these data to ECOLOGY using the
Environmental Information Management System (EIM). To satisfy this requirement these data must be successfully
W QC-2015-KitPHD-00157
Agreement No: WQ 2015-KitPHD-00157 Page 34 of 39
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
loaded into EIM, see i
b) RECIPIENTS are
are collected and prod
http://www.ecy.wa.go
all final GIS data Jaye;
documentation.
is on the EIM website at: http://www.ecy.wa.gov/eim.
to follow ECOLOGY's data standards when Geographic Information System (GIS) data
More information and requirements are available at:
RECIPIENTS shall provide copies to ECOLOGY of
imagery, related tables, raw data collection files, map products, and all metadata and project
c) RECIPIENTS mu prepare a Quality Assurance Project Plan (QAPP) when a project involves the collection of
environmental measurement data. QAPP is to ensure the consistent application of quality assurance principles to the
planning and execution of all activities involved in generating data. RECIPIENTS must follow ECOLOGY's
Guidelines for Prepariv g Quality Assurance Project Plans for Environmental Studies, July 2004 (Ecology Publication
No. 04-03-030). ECOLOGY shall review and approve the QAPP prior to start of work. The size, cost, and complexity
of the QAPP should be in proportion to the magnitude of the sampling effort.
12. GOVERNING
This Agreement will b4 governed by the laws of the State of Washington, and the venue of any action brought
hereunder will be in th Superior Court of Thurston County.
13. INDEMNIFICATI N
ECOLOGY will in no way be held responsible for payment of salaries, consultant's fees, and other costs related to the
project described here' i, except as provided in the Scope of Work.
To the extent that the
other harmless from l
or omission of that p,
14. INDEPENDENT
The employees, volur
to be employees, vole:
the other party.
15. KICKBACKS
RECIPIENT is prohi
give up any part of tl
return for award of a
16. MINORITY
RECIPIENT is e
women -owned (
Contract awards or rej
to take the following a
a) Include qualified I
or services.
b) Divide the total re
participation by qualif
c) Establish delivery
minority and women's
d) Use the services a
(OMWBE) (866-208-
WQC-2015-KitPHD-00157
astitution and laws of the State of Washington permit, each party will indemnify and hold the
against any liability for any or all injuries to persons or property arising from the negligent act
or that party's agents or employees arising out of this Agreement.
or agents of each party who are engaged in the performance of this Agreement will continue
, or agents of that party and will not for any purpose be employees, volunteers, or agents of
from inducing by any means any person employed or otherwise involved in this Agreement to
npensation to which he/she is otherwise entitled or, receive any fee, commission, or gift in
hereunder.
'S BUSINESS ENTERPRISES (MWBE)
to solicit and recruit, to the extent possible, certified minority-owned (MBE) and
businesses in purchases and contracts initiated under this Agreement.
cannot be made based on MWBE participation; however, the RECIPIENT is encouraged
when possible, in any procurement under this Agreement:
y and women's businesses on solicitation lists whenever they are potential sources of goods
when economically feasible, into smaller tasks or quantities, to permit maximum
minority and women's businesses.
where work requirements permit, which will encourage participation of qualified
assistance of the Washington State Office of Minority and Women's Business Enterprises
4) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as
Agreement No: WQC-2015-KitPHD-00157 Page 35 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
appropriate.
17. ORDER OF PRECEDENCE
In the event of inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by
giving precedence in the following order: (a) applicable Federal and State statutes and regulations; (b) Scope of Work;
(c) Special Terms and Conditions; (d) Any provisions or terms incorporated herein by reference including the
"Administrative Requirements for Recipients of Ecology Grants and Loans"; and (e) the General Terms and Conditions.
18. PRESENTATION AND PROMOTIONAL MATERIALS
RECIPIENT shall obtain ECOLOGY's approval for all communication materials or documents related to the
fulfillment of this Agreement, steps for approval:
a) Provide a draft copy to ECOLOGY for review and approval ten (10) business days prior to production and
distribution of any documents or materials compiled or produced.
b) ECOLOGY reviews draft copy and reserves the right to require changes until satisfied.
c) Provide ECOLOGY two (2) final copies and an electronic copy of any tangible products developed.
Copies include any printed materials, and all tangible products developed such as brochures, manuals, pamphlets,
videos, audio tapes, CDs, curriculum, posters, media announcements, or gadgets, such as a refrigerator magnet with a
message as well as media announcements, and any other online communication products such as Web pages, blogs, and
Twitter campaigns. If it is not practical to provide a copy, then the RECIPIENT must provide a complete description
including photographs, drawings, or printouts of the product that best represents the item.
RECIPIENT shall include time in their project timeline for ECOLOGY's review and approval process.
RECIPIENT shall acknowledge in the materials or documents that funding was provided by ECOLOGY.
19. PROGRESS REPORTING
a) RECIPIENT must satisfactorily demonstrate the timely use of funds by submitting payment requests and progress
reports to ECOLOGY. ECOLOGY reserves the right to amend or terminate this Agreement if the RECIPIENT does not
document timely use of funds.
b) RECIPIENT must submit a progress report with each payment request. Payment requests will not be processed
without a progress report. ECOLOGY will define the elements and frequency of progress reports.
c) RECIPIENT shall use ECOLOGY's provided progress report format.
d) Quarterly progress reports will cover the periods from January 1 through March 31, April 1 through June 30, July 1
through September 30, and October 1 through December 31. Reports shall be submitted within thirty (30) days after
the end of the quarter being reported.
e) RECIPIENT shall submit the Closeout Report within thirty (30) days of the expiration date of the project, unless an
extension has been approved by ECOLOGY. RECIPIENT shall use the ECOLOGY provided closeout report format.
20. PROPERTY RIGHTS
a) Copyrights and Patents. When the RECIPIENT creates any copyrightable materials or invents any patentable
property, the RECIPIENT may copyright or patent the same but ECOLOGY retains a royalty free, nonexclusive, and
irrevocable license to reproduce, publish, recover, or otherwise use the material(s) or property, and to authorize others
to use the same for federal, state, or local government purposes.
b) Publications. When the RECIPIENT or persons employed by the RECIPIENT use or publish information of
ECOLOGY; present papers, lectures, or seminars involving information supplied by ECOLOGY; use logos, reports,
maps, or other data, in printed reports, signs, brochures, pamphlets, etc., appropriate credit shall be given to
ECOLOGY.
c) Presentation and Promotional Materials. ECOLOGY shall have the right to use or reproduce any printed or graphic
WQC-2015-KitPHD-00157
Agreement No:
Project Title:
Recipient Name:
materials produced in
acknowledge the REC
d) Tangible Property
Grants and Loans," shs
with funds furnished b
or upon specific instru
e) Personal Property
RECIPIENT for use it
ECOLOGY. If said p1
be reimbursed in cash
f) Acquisition Proje(
for the acquisition of I
a. RECIPIENT shall
this Agreement.
b. RECIPIENT shall
disbursement of funds
certificates, or abstracl
which would impair tf.
g) Conversions. Reg
57
Clean Water Revolving Loan Program
PUBLIC HEALTH DISTRICT
Page 36 of 39
lfillment of this Agreement, in any manner ECOLOGY deems appropriate. ECOLOGY shall
IENT as the sole copyright owner in every use or reproduction of the materials.
ights. ECOLOGY's current edition of "Administrative Requirements for Recipients of Ecology
control the use and disposition of all real and personal property purchased wholly or in part
ECOLOGY in the absence of state and federal statutes, regulations, or policies to the contrary,
ions with respect thereto in this Agreement.
amished by ECOLOGY. When ECOLOGY provides personal property directly to the
performance of the project, it shall be returned to ECOLOGY prior to final payment by
perty is lost, stolen, or damaged while in the RECIPIENT's possession, then ECOLOGY shall
by setoff by the RECIPIENT for the fair market value of such property.
The following provisions shall apply if the project covered by this Agreement includes funds
d or facilities:
that the cost is fair value and reasonable prior to disbursement of funds provided for in
rovide satisfactory evidence of title or ability to acquire title for each parcel prior to
rovided by this Agreement. Such evidence may include title insurance policies, Torrens
and attorney's opinions establishing that the land is free from any impediment, lien, or claim
uses intended by this Agreement.
-dless of the agreement expiration date, the RECIPIENT shall not at any time convert any
equipment, property, o facility acquired or developed under this Agreement to uses other than those for which
assistance was originally approved without prior written approval of ECOLOGY. Such approval may be conditioned
upon payment to ECOLOGY of that portion of the proceeds of the sale, lease, or other conversion or encumbrance
which monies granted ursuant to this Agreement bear to the total acquisition, purchase, or construction costs of such
property -
2 1.
roperty.
21. RECORDS, AUL
RECIPIENT shall ma
engineering documen
All records shall:
a) Be kept in a mam
b) Be kept in a come
c) Clearly indicate t
d) Be open for audit
Washington, for a per
resolution hereunder.
RECIPIENT shall p
discrepancies in the
AND INSPECTIONS
complete program and financial records relating to this Agreement, including any
and field inspection reports of all construction work accomplished.
which provides an audit trail for all expenditures.
1 file to facilitate audits and inspections.
receipts and expenditures related to this Agreement.
inspection by ECOLOGY, or by any duly authorized audit representative of the State of
of at least three (3) years after the final grant payment or loan repayment, or any dispute
clarification and make necessary adjustments if any audits or inspections identify
ECOLOGY reserves a right to audit, or have a designated third party audit, applicable records to ensure that the state
has been properly invoiced. Any remedies and penalties allowed by law to recover monies determined owed will be
enforced. Repetitive iiistances of incorrect invoicing or inadequate records may be considered cause for termination.
All work performed ur der this Agreement and any property and equipment purchased shall be made available to
ECOLOGY and to any authorized state, federal or local representative for inspection at any time during the course of
this Agreement and f6i at least three (3) years following grant or loan termination or dispute resolution hereunder.
RECIPIENT shall proide right of access to ECOLOGY, or any other authorized representative, at all reasonable times,
in order to monitor anI evaluation performance, compliance, and any other conditions under this Agreement.
WQC-2015-KitPHD-00157
Agreement No: WQC-2015-KitPHD-00157 Page 37 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
22. RECOVERY OF FUNDS
The right of the RECIPIENT to retain monies received as reimbursement payments is contingent upon satisfactory
performance of this Agreement and completion of the work described in the Scope of Work.
All payments to the RECIPIENT are subject to approval and audit by ECOLOGY, and any unauthorized expenditure(s)
or unallowable cost charged to this agreement shall be refunded to ECOLOGY by the RECIPIENT.
RECIPIENT shall refund to ECOLOGY the full amount of any erroneous payment or over under this
Agreement.
RECIPIENT shall refund by check payable to ECOLOGY the amount of any such reduction of payments or repayments
within thirty (30) days of a written notice. Interest will accrue at the rate of twelve percent (12%) per year from the
time ECOLOGY demands repayment of funds.
Any property acquired under this Agreement, at the option of ECOLOGY, may become ECOLOGY's property and the
RECIPIENT's liability to repay monies will be reduced by an amount reflecting the fair value of such property.
23. SEVERABILITY
If any provision of this Agreement or any provision of any document incorporated by reference shall be held invalid,
such invalidity shall not affect the other provisions of this Agreement which can be given effect without the invalid
provision, and to this end the provisions of this Agreement are declared to be severable.
24. STATE ENVIRONMENTAL POLICY ACT (SEPA)
RECIPIENT must demonstrate to ECOLOGY's satisfaction that compliance with the requirements of the State
Environmental Policy Act (Chapter 43.21C RCW and Chapter 197-11 WAC) have been or will be met. Any
reimbursements are subject to this provision.
25. SUSPENSION
When in the best interest of ECOLOGY, ECOLOGY may at any time, and without cause, suspend this Agreement or
any portion thereof for a temporary period by written notice from ECOLOGY to the RECIPIENT. RECIPIENT shall
resume performance on the next business day following the suspension period unless another day is specified by
ECOLOGY.
26. SUSTAINABLE PRACTICES
In order to sustain Washington's natural resources and ecosystems, the RECIPIENT is fully encouraged to implement
sustainable practices and to purchase environmentally preferable products under this Agreement.
a) Sustainable practices may include such activities as: use of clean energy, use of double -sided printing, hosting low
impact meetings, and setting up recycling and composting programs.
b) Purchasing may include such items as: sustainably produced products and services, EPEAT registered computers
and imaging equipment, independently certified green cleaning products, remanufactured toner cartridges, products
with reduced packaging, office products that are refillable, rechargeable, and recyclable, and 100% post consumer
recycled paper.
For more suggestions visit ECOLOGY's web pages: Green Purchasing, http://www.ecy.wa.gov/programs/swfa/epp
and Sustainability, www.ecy.wa.gov/sustainability.
27. TERMINATION
a) For Cause
WQC-2015-KitPHD-00157
Agreement No: WQ 2015-KitPHD-00157 Page 38 of 39
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
ECOLOGY may term' ate for cause this Agreement with a seven (7) calendar days prior written notification to the
RECIPIENT, at the sole discretion of ECOLOGY, for failing to perform an Agreement requirement or for a material
breach of any term or c Dridition. If this Agreement is so terminated, the parties shall be liable only for performance
rendered or costs inc ed in accordance with the terms of this Agreement prior to the effective date of termination.
Failure to Commence *ork. ECOLOGY reserves the right to terminate this Agreement if RECIPIENT fails to
commence work on the project funded within four (4) months after the effective date of this Agreement, or by any date
mutually agreed upon ' a writing for commencement of work, or the time period defined within the Scope of Work.
Non -Performance. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance by the
RECIPIENT of all of it s obligations under this Agreement. In the event the RECIPIENT unjustifiably fails, in the
opinion of ECOLOGY to perform any obligation required of it by this Agreement, ECOLOGY may refuse to pay any
further funds, terminate in whole or in part this Agreement, and exercise any other rights under this Agreement.
Despite the above, the
ECOLOGY and the St
may withhold paymen
the RECIPIENT is det
b) For Convenience
ECOLOGY may termi
interest of ECOLOGY
is so terminated, the p,
of this Agreement prio
Non -Allocation of Fu
funding from state, fe
prior to the completic
the agreement, in wh(
ECOLOGY may also
insufficiency is resoh
If payments have be
repay monies which
ECIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by
e of Washington because of any breach of this Agreement by the RECIPIENT. ECOLOGY
for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from
,ate for convenience this Agreement, in whole or in part, for any reason when it is the best
with a thirty (30) calendar days prior written notification to the RECIPIENT. If this Agreement
ties shall be liable only for performance rendered or costs incurred in accordance with the terms
to the effective date of termination.
Is. ECOLOGY's ability to make payments is contingent on availability of funding. In the event
:ral or other sources is withdrawn, reduced, or limited in any way after the effective date and
or expiration date of this agreement, ECOLOGY, at its sole discretion, may elect to terminate
or part, or renegotiate the agreement, subject to new funding limitations or conditions.
sect to suspend performance of the agreement until ECOLOGY determines the funding
1. ECOLOGY may exercise any of these options with no notification or restrictions.
iscontinued by ECOLOGY due to unavailable funds, the RECIPIENT shall not be obligated to
been paid to the RECIPIENT prior to such termination.
RECIPIENT's obligati n to continue or complete the work described in this Agreement shall be contingent upon
availability of funds bi the RECIPIENT s governing body.
c) By Mutual Agri
ECOLOGY and the
agreement.
d) In Event of Termi
All finished or unfini,,
materials prepared by
ECOLOGY and the R
completed on such do
Nothing contained he:
accordance with Recc
W QC-2015-KitPHD-00157
may terminate this Agreement, in whole or in part, at any time, by mutual written
documents, data studies, surveys, drawings, maps, models, photographs, reports or other
RECIPIENT under this Agreement, at the option of ECOLOGY, will become property of
PIENT shall be entitled to receive just and equitable compensation for any satisfactory work
and other materials.
shall preclude ECOLOGY from demanding repayment of all funds paid to the RECIPIENT in
r of Funds, identified herein.
Agreement No: WQC-2015-KitPHD-00157 Page 39 of 39
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
28. THIRD PARTY BENEFICIARY
RECIPIENT shall ensure that in all subcontracts entered into by the RECIPIENT pursuant to this Agreement, the state
of Washington is named as an express third party beneficiary of such subcontracts with full rights as such.
29. WAIVER
Waiver of a default or breach of any provision of this Agreement is not a waiver of any subsequent default or breach,
and will not be construed as a modification of the terms of this Agreement unless stated as such in writing by the
authorized representative of ECOLOGY.
WQC-2015-KitPHD-00157