HomeMy WebLinkAbout051418_ca03�V 615 Sheridan Street
Port Townsend, WA 98368
�efehson www.JeffersonCountyPublicHealth.org
Public Health
Consent Agenda
May 7, 2018
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of County Commissioners
Philip Morley, County Administrator
FROM: Stuart Whitford, Environmental Public Health Director
DATE: May 14, 2018
SUBJECT: Agenda Item —Interlocal Agreement for the Department of Ecology
Regional Clean Water Revolving Loan Program (WQC-2015-KitPHD-00157),
Amendment #2; 07/01/2014 — 06/30/2017;
STATEMENT OF ISSUE:
Jefferson County Environmental Public Health is requesting Board approval of Amendment No. 2 to the
Interlocal Agreement for the Department of Ecology for the Regional Clean Water Revolving Loan Program; July
1, 2014 — June 30, 2017
ANALYSIS/ STRATEGIC GOALS/PRO'S and CON'S:
This is an amendment to the inter -local agreement between Clallam, Jefferson, Kitsap, and Mason counties and
the Kitsap Public Health District for the Hood Canal Regional Septic Loan Program, funded through the
Department of Ecology. The purpose of this amendment is to de -obligate funds, establish the final blended
interest rate, officially close out the project, and establish a final loan repayment schedule. This amendment is
needed to close out the above -referenced agreement.
FISCAL IMPACT/COST BENEFIT ANALYSIS:
This amendment de -obligates $60,000 (total) that were budgeted for outreach and education. Of which,
$15,000 (Jefferson County) had been dedicated for the outreach and education activities originally anticipated
were not needed.
RECOMMENDATION:
JCPH management request approval of Amendment No. 2 to the Interlocal Agreement for the Department of
Ecology for the Regional Clean Water Revolving Loan Program; July 1, 2014 — June 30, 2017
REVIEWED BY: /� /`/
5X�
hilip Morle , o my Administrator , Date
Community Health Environmental Health
Developmental Disabilities Water Quality
360-385-9400 360-385-9444
360-385-9401 (f) Always working for a safer and healthier community (f) 360-379-4487
HOOD CANAL REGIONAL SEPTIC LOAN PROGRAM
AMENDMENT TO THE INTERLOCAL AGREEMENT BETWEEN
Clallam County
Jefferson County
Kitsap County
Mason County
Kitsap Public Health District
THIS AMENDMENT ("AMENDMENT") amends an Interlocal Agreement 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.
In consideration of the mutual benefits and covenants contained herein, the parties agree
that their Interlocal Agreement, executed between January and May 2016, shall be amended as
follows:
1. Exhibit B to the original Interlocal Agreement is hereby revised and amended to
include the terms of Amendment #2, attached hereto, as if Amendment #2 were incorporated in
full into Exhibit B in its entirety.
2. Except as expressly provided in this Amendment, all other terms and conditions
of the original Interlocal Agreement remain in full force and effect.
IN WITNESS WHEREOF, the Parties have executed this Agreement.
Executed this _ day of , 2018
Clallam County
By:
Title:
Executed this _ day of , 2018
Jefferson County
By:
Executed this _ day of , 2018 Executed this _ day of , 2018
Mason County Kitsap County
By: By:
Title: Title:
Amendment to Hood Canal Regional Septic Loan Program Interlocal Agreement Page 1
Executed this _ day of , 201_
Kitsap Public Health District
By:
Title:
Date:
APPROVED AS TO FORM ONLY BY THE
Clallam County Prosecuting Attorney
Date: $/.I )i d 0 c. 111-'a,
APPROVED AS TO FORM ONLY BY THE
Philip C. Hunsucker, Chief Civil Deputy Prosecuting Attorney
Jefferson County Prosecuting Attorney's Office
Date:
APPROVED AS TO FORM ONLY BY THE
Kitsap County Prosecuting Attorney
Date:
APPROVED AS TO FORM ONLY BY THE
Mason County Prosecuting Attorney
Amendment to Hood Canal Regional Septic Loan Program Interlocal Agreement Page 2
AMENDMENT #2 TO EXHIBIT B
TO
HOOD CANAL REGIONAL SEPTIC LOAN PROGRAM
INTERLOCAL AGREEMENT BETWEEN
Clallam County
Jefferson County
Kitsap County
Mason County
Kitsap Public Health District
KPHD 1518 Amendment 2 (1787)
Page 1 of 8
DEPARTMENT OF
im ECOLOGY
State of Washington
AMENDMENT NO.2
TO AGREEMENT NO. WQC-2015-KitPHD40157
BETWEEN
THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY
AND
KITSAP PUBLIC HEALTH DISTRICT
PURPOSE: To amend the above -referenced agreement (AGREEMENT) between the state of Washington Department
of Ecology (ECOLOGY) and KITSAP PUBLIC HEALTH DISTRICT (RECIPIENT) for the Regional Clean Water
Revolving Loan Program (PROJECT).
The purpose of Amendment 2 is to deobligate funds, establish the final blended interest rate, officially close out the
project, and establish a final loan repayment schedule. The RECIPIENT and ECOLOGY mutually cancelled
Amendment 1 before it was fully executed.
The RECIPIENT should review the original agreement conditions and requirements that apply during the loan
repayment phase. For example:
Section 5, H. Loan Repayment
Section 5, I. Loan Security, Reserve Requirement
Updated Amoritzation Schedule, attached hereto and incorporated herein as Attachment 1
1) The original grant amount is decreased by $72,500, from $695,000 to $622,500 based upon the final eligible costs
for the project.
2) The original loan amount of $1,000,000 remains unchanged. In addition, $11,915.58 of interest has accrued from
previous payments at the original interest rate of 1.4% and is included in the final repayment amount of $1,011,915.58.
3) The original interest rate of 1.4% is replaced with the final blended interest rate of 1.0%. The original interest rate is
applied to the accrued interest from previous payments until this amendment is fully executed.
4) The project completion date shall be June 30, 2017, and loan repayment shall commence no later than June 30,
2018.
5) The Estimated Loan Repayment Schedule Number 2056 created on 11/24/2014, shall be replaced with the attached
Final Loan Repayment Schedule Number 2410 created on 6/14/2017.
All other terms and conditions of the original Agreement including any Amendments remain in full force and effect,
except as expressly provided by this Amendment.
IT IS MUTUALLY AGREED that the AGREEMENT is amended as follows:
Total Cost:
Original: 1,695,000.00 Amended: 1,622,500.00
Total Eligible Cost:
Original: 1,695,000.00 Amended: 1,622,500.00
Version 10/30/2015
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No. 2
CHANGES TO THE BUDGET
Funding Distribution EL150037
Funding Title: State Revolving Fund
Funding Type:
Funding Effective Date:
Funding Source:
Title:
Loan
07/01/2014
CWSRF - SFYIS
KPHD 1516 Amendment 2 (1787)
Page 2 of 8
Funding Expiration Date: 06/30/2017
Type: Blended State/Federal
Funding Source %: 100%
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.
Approved Indirect Costs Rate: De Minimis Rate per 2 CFR §200.414
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% Interest Rate: % 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
$11,915.58
$1,011,915.58
2410
State Revolving Fund
Task Total
Financial Assistance to Homeowners
$ 1,000,000.00
Total: $ 1,000,000.00
CHANGES TO SCOPE OF WORK
Version 10/30/2015
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No. 2
Task Number:
Task Title: Project Administration/Management
Task Cost: $0.00
KPHD 1516 Amendment 2 (1787)
Page 3 of 8
Task Description-
A. The RECIPIENT will administer the project. Responsibilities will include, but not be limited to: maintenance of
project records; submittal 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 necessary for the project; and submittal of required performance items.
B. The RECIPIENT must manage the project. Efforts will include: conducting, coordinating, and scheduling project
activities and assuring quality control. Every effort will be made to maintain effective communication with the
RECIPIENT's designees; 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 project that meets agreement and Ecology administrative requirements.
Task Expected Outcome:
* Timely and complete submittal of requests for reimbursement, quarterly progress reports and recipient closeout
report.
* Properly maintained project documentation
Recipient Task Coordinator: Stuart Whitford
Deliverables
Number
Description
Due Date
1.1
Progress Reports
1.2
Recipient Closeout Report
1.3
Project Outcome Summary Report
CHANGES TO SCOPE OF WORK
Task Number: 4
Task Title:
Task Description:
Version 10/30/2015
Outreach and Education
Task Cost: $0.00
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No. 2
KPHD 1516 Amendment 2 (1787)
Page 4 of 8
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 stories and advertisements, coordination with local community partners, OSS contractors, and
Pollution Identification and Correction efforts.
Task Goal Statement:
Maintain and expand awareness of the Clean Water Loan with an emphasis on building awareness amongst financially
distressed homeowners with failing septic systems.
Task Expected Outcome:
1 -Finalize marketing plan.
2 -Advertisement of the loan program — low-income residents, OSS contractors, real estate professionals, general public
awareness of Clean Water Loan resulting in submission of Clean Water loan applications.
Recipient Task Coordinator: Stuart Whitford
Deliverables
Number
Description
Due Date
4.1
Marketing strategy
06/30/2017
4.2
Quarterly reporting on key outreach activities
06/30/2017
Version 10/30/2015
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No. 2
Fundin¢ Distribution Summary
Recipient / Ecology Share
KPHD 1516 Amendment 2 (1787)
Page 5 of 8
Funding Distribution Name
Recipient Match %
Recipient Share
Ecology Share
Total
State Revolving Fund
0 %
$
0.00
$
1,000,000.00
$ 1,000,000.00
Centennial Grant with Match
32.79 %
$
200,019.00
$
409,981.00
$ 510,000.00
Centennial Grant without match
0 %
$
0.00
$
12,500.00
$ 12,500.00
Total
$
200,019.00
$
1,422,481.00
$
Version 10/30/2015
KPHD 1516 Amendment 2 (1787)
State of Washington Department of Ecology Page 6 of 8
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No. 2
AUTHORIZING SIGNATURES
All other terms and conditions of the original Agreement including any Amendments remain in full force and effect,
except as expressly provided by this Amendment.
The signatories to this Amendment represent that they have the authority to execute this Amendment and bind their
respective organizations to this Amendment.
This amendment will be effective 07/01/2017.
IN WITNESS WHEREOF: the parties hereto, having read this Amendment in its entirety, including all attachments, do
agree in each and every particular and have thus set their hands hereunto.
Washington State
Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
By; yl� g 11 � By:
�r Heather Bartlett Date Keith James Grellner Date
Water Quality
Program Manager
Version 10/30/2015
Administrator
Board of County Commissioners, Kitsap County,
WA
C_ i 3
ROBERT GELDER
01
�w
EDWARD E. WOLFE
CHARLOTTE GARRIDO
Uornmtsstoner
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No. 2
Template Approved to Form by
Attomey General's Office
Version 10/30/2015
Attest
KPHD 1516 Amendment 2 (1787)
Page 7 of 8
I
Dana Daniels, Clerk of the Board Date
DEPARTMENT OF
ECOLOGY
State of Washington
Loan Number.
Recipient Name:
Amortization Method:
Project Completion Date:
Initiation of Operations:
Schedule Number:
EL150037
Kitsap Public Health
District
Compound -365 D/Y
06/30/2017
06/30/2017
2410
ATTACHMENT 1 KPHD 1516 Amendment 2 (1787)
Page 8 of 8
FINAL LOAN REPAYMENT SCHEDULE
Loan Amount: $1,011,915.58
Term of Loan:
9
Annual Interest Rate:
1.000 %
Interest Compounded:
Monthly
Loan Date:
06/02/2017
Schedule Creation Date:
06/14/2017
Payment
Due Early
Payment
Interest
Principal
Balance
Number
Date Repay
Amount
Amount
Amount
Amount
01
06/30/2018
115,935.41
10,935.69
104,999.72
906,915.86
02
12/30/2018
115,935.41
4,544.04_
111,391.37
795,524.49
Sub Total
2018
231,870.82-�
15,479.73
216,391.09
03
06/30/2019
115,935.41
3,985.92
111,949.49
683,575.00
04
12/30/2019
_115,935.41
3,425.00
112,510.41
571,064.59__
Sub Total
2019
231,870.82
7,410.92
224,459.90
05
06/30/2020
115,935.41
2,861.28
113,074.13
457,990.46
06
12/30/2020
_ _ __ +�-�
115,9_35.41
_ 2,294.73
113,640.68
344,349.78
Sub Total
2020
231,870.82
5,156.01
226,714.81
07
06/30/2021
115,935.41
1,725.34
114,210.07
230,139.71
08
12/30/2021 - �-231,870.82
115,9_35.41 --
_1,153.10
114,782.31
115,357.40
Sub Total
2021
2,878.44
228,992.38
09
06/30/2022115,935.39
�-
_
577.99
115,357.40
0.0_0
Sub Total
2022
116,935.39
577.99
115,357.40
Grand Total
1,043,418.67
31,503.09
1,011,915.68
Scedule Number: 2410 ELTS Repayment Schedule Report run 06/1412017
Page 1 of 1 Pages
KPHD 1516
Amendment 1 (1685)
..: DEPARTMENT OF
swam ECOLOGY
State of Washington
AMENDMENT NO. i
TO AGREEMENT NO. WQC-2015-KitPHD-00157
BETWEEN
THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY
AND
KITSAP PUBLIC HEALTH DISTRICT
PURPOSE: To amend the above -referenced agreement (AGREEMENT) between the state of Washington Department
of Ecology (ECOLOGY) and KITSAP PUBLIC HEALTH DISTRICT (RECIPIENT) for the Regional Clean Water
Revolving Loan Program (PROJECT).
The purpose of this amendment is to transfer $12,500 in Centennial Grant from Task 1 to Task 3 and $60,000 in
Centennial Grant from Task 4 into Task 3, res ing in 72 . Cant funds in Task 3. The RECIPIENT
no longer needs to fund administrative and outr ch C)ptiuolnal
iill has need for funds to provide
repairs and replacements for on-site sewage syst 3re spent before the agreement was
executed, and the remaining funds in Tasks 1 and ill financing for repairs. In
addition, this amendment removes Deliverable 4.1 Marketing Strategy. The Task 3 funds were spent before the
marketing strategy was developed. Similarly, all references to the schedule and milestones are removed from Task 2,
because the funds were spent before the schedule de I NT would prefer to spend any
remaining funds on Task 3 activities, since the irn e n ti plan m eting strategies are no longer needed.
Finally, this amendment updates RECIPIENT con ct i to s Ping changes.
IT IS MUTUALLY AGREED that the AGREEMENT is amended as follows:
CHANGES TO SCOPE OF
Task Number: 1 Task Cost: $0.00
Task Title: Project Administration/Management
Task Description:
A. The RECIPIENT will administer the project. Responsibilities will include, but not be limited to: maintenance of
project records; submittal 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 necessary for the project; and submittal of required performance items.
B. The RECIPIENT must manage the project. Efforts will include: conducting, coordinating, and scheduling project
activities and assuring quality control. Every effort will be made to maintain effective communication with the
RECIPIENT's designees; ECOLOGY; all affected local, state, or federal jurisdictions; and any interested individuals or
groups. The RECIPIENT must cant' out this project in accordance with any completion dates outlined in this
agreement.
Version 10/30/2015
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No WQC-2015-KitPHD-00157
Amendment No. 1
Task Goal Statement:
Properly managed project that meets agreement and Ecology administrative requirements.
KPHD 1516 Page 2 of g
Amendment 1 (1685)
Task Expected Outcome:
* Timely and complete submittal of requests for reimbursement, quarterly progress reports and recipient closeout
report.
* Properly maintained project documentation
Recipient Task Coordinator: John Kiess
Deliverables
Number
Description
Due Date
1.1
Progress Reports
1.2
Recipient Close ou epo
1.3
Project Outcome S i port
V V I V
CHANGES TO SCOPE OF WORK
Task Number: 2Task agt: 12,500.00
Task Title: Loan Program Administratio
Task Description:
A. The RECIPIENT will offtci dm ister n a rov eny licatio an tablish and
document the repayment crite c ance i the CI n oan uide a ogra s governing loan
policy document.
B. The RECIPIENT will submit to ECOLOGY for its approval an implementation plan for the project. The plan and
schedule will include local loan fund program processes and procedures, 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.
D. Ecology understands and accepts that Kitsap County and the RECIPIENT have no authority or jurisdiction over
performance of the Project in other counties, thus Kitsap County and the RECIPIENT's role in the Agreement are as
administrators of the Project for a 4 -county partnership (Clallam, Jefferson, Kitsap, and Mason Counties) pursuant to
RCW 39.34.030.
Implementation of the Project and disbursement of funds shall not occur unless and until execution of an interlocal
agreement by and between the RECIPIENT and Clallam, Jefferson, Kitsap, and Mason Counties pursuant to chapter
39.34 RCW. This agreement will establish a 4 -county partnership to contract with a third party lender (Craft 3) to
offer financial assistance for "Clean Water" loans to property owners to repair or replace failing onsite sewage systems
Version 10/30/2015
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No WQC-2015-KitPHD-00157
Amendment No I
KPHD 1510 page 3 of g
Amendment 1 (1685)
(OSS) in Clallam, Jefferson, Kitsap, and Mason Counties. Kitsap County and the RECIPIENT'ssignatures to the
Agreement with Ecology signifies that, upon execution of an interlocal agreement establishing the 4 -county
partnership, Kitsap County and the RECIPIENT , as administrators of the Project for the 4 -county partnership, assume
any and all obligations for repayment of the State Revolving Fund loan portion of the Agreement with Ecology.
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.
3 -Creation of loan marketing materials and dis ribution to p ers.
Recipient Task Coordinator: Lender
Deliverables
Number
Description
Due Date
2.1
Request for Proposal r i ing L er
06/30/2017
2.2
Contract with participating Lender
06/30/2017
2.3
InipkientlWwign
06/30/2017
2.4
M e g iltial f
06/30/2017
1 74 V
CHANGES TO SCOPE OF WORK
Task Number: 3 Task Cost: $1,682,500.00
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
Version 10/30/2015
State of Washington Department of Ecology
KiTSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No WQC-2015-KitPHD-00157
Amendment No 1
(apartments, duplexes, or houses), small restaurants, stores, or taverns.
KPHD 1516 Page 4 of 8
Amendment 1 (1685)
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 100 loans will be originated resulting in a minimum of 100 repaired/replaced septic systems.
Recipient Task Coordinator: Lender
Deliverables
Number
Description
Due Date
3.1
Documentation ofVO CI
06/30/2017
3.2
Quarterly reportingI nducti if [u
Status
ng o all LLR
06/30/2017
CHANGES TO SCOPE OF WORK
Task Number: 4 QtTwto-oo
Task Title: Outreach and Education
Task Description:
A. The RECIPIENT or its des' wi supp orfs to d pu ue e e f fai g septic systems
by leading Clean Water loan tree a re 1n ciaf bareie to a ptic systems.
Activities will include, but are not limited to, mailings, newsletter announcements, convening septic educational
classes, local media stories and advertisements, coordination with local community partners, OSS contractors, and
Pollution Identification and Correction efforts.
Task Goal Statement:
Maintain and expand awareness of the Clean Water Loan with an emphasis on building awareness amongst financially
distressed homeowners with failing septic systems.
Task ExW&ted Outcome:
1 -Advertisement of the loan program — low-income residents, OSS contractors, real estate professionals, general public
awareness of Clean Water Loan resulting in submission of Clean Water loan applications.
Recipient Task Coordinator: John Kiess
Deliverables
Version 10/30/2015
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No WQC-2015-KitPHD-00157
Amendment No I
KPHD 1516 page 5 of g
Amendment 1 (1685)
Number Description Due Date
4.1 Quarterly reporting on key outreach activities
CHANGES TO THE 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: Centenni- SFY
Type: State
Funding Source %: 100%
O I D
Description: The Centennial Clean Water Program provides grants for nonpoint source pollution
control activi proje isOT'
ility construction projects in smaller,
financially di e o
Approved Indirect Costs Rate: Approv S n
Recipient Match %: 0%
InKind Interlocal Allowed: No
InKind Other Allowed:
Is this Funding Distribution us mahar-nt-
o P n
Centennial Grant withit mat
%Ta
Tot
Financial Assistance to Homeowners
S
72,500.00
Loan Program Administration
$
12,500.00
Total: S 85,000.00
Version 10/30/2015
f:J
State of Washington Department of Ecology
KiTSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No WQC-2015-KitPHD-00157
Amendment No I
Fundine Distribution Summary
Recipient / Ecology Share
KPHD 1518 Page 6 of 8
Amendment 1 (1685)
Funding Distribution Name
Recipient Match %
Recipient Share
Ecology Share
Total
Centennial Grant without match
0 %
$ 0.00
$ 85,000.00
$ 85,000.00
Centennial Grant with Match
32.79 %
$ 200,019.00
$ 409,981.00
$ 610,000.00
State Revolving Fund
0 %
$ 0.00
$ 1,000,000.00
$ 1,000,000.00
Total
$ 200,019.00
$ 1,494,981.00
$ 1,695,000.00
VOID
NOT
ADOPTED
Version 10/30/2015
State of Washington Department or Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No I
AUTHORIZING SIGNATURES
KPHD 1516 Page 7 of s
Amendment 1 (1685)
All other terms and conditions of the original Agreement including any Amendments remain in full force and effect,
except as expressly provided by this Amendment.
The signatories to this Amendment represent that they have the authority to execute this Amendment and bind their
respective organizations to this Amendment.
This amendment will be effective 03/01/2017.
IN WITNESS WHEREOF: the parties hereto, having read this Amendment in its entirety, including all attachments, do
agree in each and every particular and have thus set their hands hereunto.
Washington State KITSAP PUBLIC HEALTH DISTRICT
Department of Ecology
VOI
By: By:
Heather R. Bartlett ate es Grellner Date
Water Quality
d istrator
Program Manager
ADO vers, Kitsap County,
TE
EDWARD E. WOLFE, Chair Date
Board of County Commissioners, Kitsap County,
WA
CHARLOTTE GARRIDO,
Commissioner
Version 10/30/2015
Date
State of Washington Department of Ecology
KITSAP PUBLIC HEALTH DISTRICT
Regional Clean Water Revolving Loan Program Project
Agreement No. WQC-2015-KitPHD-00157
Amendment No I
Template Approved to Form by
Attorney General's Office
Version 10/30/2015
KPHD 1516 page g of g
Amendment 1 (1685)
Board of County Commissioners, Kitsap County,
WA
ROBERT GELDER, Commissioner Date
Attest
Dana Daniels, Clerk of the Board
VOID
NOT
ADOPTED
Date
Agreement No: WQC-2015-KitPHD-00157
Project Title: Regional Clean Water Revolving Loan Program
Recipient Name: KITSAP PUBLIC HEALTH DISTRICT
DEPARTMENT OF
ECOLOGY
State of Washington
Agreement WQC-2015-KitPHD-00157
Water Quality Combined Financial Assistance AGREEMENT
BETWEEN THE STATE OF WASHINGTON DEPARTMENT OF ECOLOGY
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 I 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: W 2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KrrS Ap PUBLIC HEALTH DISTRICT
small portion of grant hinds 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 provides financial assistance via highly -affordable loans to cover 100 percent of all costs
associated with the de iign, permitting, and installation of an approved OSS repair or replacement. In certain areas,
loans may also cover I he cost of municipal sewer connection. The loan program was expanded to Clallam County in
2011, to serve Dunget iess bay and has since expanded county -wide.
Loans will be structur Dd to provide inclusive credit and meet the needs of property owners and OSS contractors.
Rates and repayment cture will include reduced rates and deferred payment options for borrowers with lower
household incomes. o support compliance and ensure the ongoing water quality, health, and property value
benefits, the Lender v ill also include a reserve of up to $1,750 for each loan for ongoing inspections, operation and
maintenance, and mir4Dr repairs.
Roles: Each LHJ lea4 s compliance, inspections, permitting, contractor certification, and outreach. The Lender
provides loan and ftm I management—applications, underwriting, servicing, credit policy, risk management, loan loss
reserve, consumer ler 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 o;
This will lead to an
healthier waters for
people in need, the
move out because tl
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
mining and other recreational activities. Additionally, since the program is designed to help
Vam 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: scoff.daniels@kitsappublichealth.org
Phone: (360) 337-5287
W QC-2015-KitPHD-00157
Agreement No: W -2015-KitPHD-00157 Page 4 of 39
Project Title: Regiii nal Clean Water Revolving Loan Program
Recipient Name: KIT 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: W -2015-KitPHD-00157
Project Title: Regii onal 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 wi administer the project. Responsibilities will include, but not be limited to: maintenance of
project records; submitt2l of requests for reimbursement and corresponding backup documentation, progress reports
and recipient closeout r rt (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 necessarl 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 iality control. Every effort will be made to maintain effective communication with the
RECIPIENTS designee • ECOLOGY; all affected local, state, or federal jurisdictions; and any interested individuals or
groups. The RECIPIEN T must carry out this project in accordance with any completion dates outlined in this
agreement.
Task Goal Statement:
Properly managed prof that meets agreement and Ecology administrative requirements.
* Timely and complete submittal of requests for reimbursement, quarterly progress reports and recipient closeout
report.
* Properly maintained project documentation
Stuart Whitford
Project Adm
Deliverables
Page 6 of 39
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 Descri tp ion:
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:
I -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: W 2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KITV 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 fiord 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-KitPHD-00157
Agreement No: W2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Na:meKIT AP PUBLIC HEALTH DISTRICT
SCOPE OF WORK
Task Number: 4 Task Cost: $60,000.00
Task Title: Oul reach and Education
Task Description:
A. The RECIPIENT or ts designees will support efforts to identify and pursue enforcement of failing septic systems
by leading Clean Water Dan outreach efforts to reduce the financial barriers to addressing failing septic systems.
Activities will include, I ut are not limited to, mailings, newsletter announcements, convening septic educational
classes, local media sto s and advertisements, coordination with local community partners, OSS contractors, and
Pollution Identification d Correction efforts.
Task Goal Statement:
Maintain and expand awareness of the Clean Water Loan with an emphasis on building awareness amongst financially
distressed homeowners with 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 We
r Loan resulting in submission of Clean Water loan applications.
Stuart Whitford
Outreach and
Deliverables
Page 10 of 39
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: $ 85,000.00
WQC-2015-KitPHD-00157
Page I I of 39
Agreement No: WQ -2015-KitPHD-00157 Page 12 of 39
Project Title: Regii inal Clean Water Revolving Loan Program
Recipient Name: KITE AP PUBLIC HEALTH DISTRICT
BUDGET
Funding Distribution 150036
Funding Title: Centennial Grant with Match
Funding Type: grant
Funding Effective Date: 07/01/2014
Funding Source:
Title: Fentennial - SFY15
Type: tate
CFDA:
Recipient Match %:
InKind Interlocal Allov
InKind Other Allowed:
Is this Funding Distribi
Funding Expiration Date: 06/30/2017
Agreement:
1: 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
n used to match a federal grant? No
Centennial Grant wit
Match
Task Total
Financial Assistance to
Homeowners
$ 610,000.00
Total: $ 610,000.00
W QC-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: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT PUBLIC HEALTH DISTRICT
Recipient / Ecology
Funding Distribution
Name
Recipient Match %
Recipient Share
Ecology Share
Total
Centennial Grant witt
Match
32.79 %
$ 200,019.00
$ 409,981.00
$ 610,000.00
Centennial Grant witt
match
out
0.00 %
$ 0.00
$ 85,000.00
$ 85,000.00
State Revolving Fund
0.00 %
S 0.00
$ 1,000,000.00
$ 1,000,000.00
Total
1 $ 200,019.00
S 1,494,981.00
$ 1.695.000.00
AGREEMENT SPECIFIC TERMS AND CONDITIONS
N/A
SPECIAL TERMS AIND CONDITIONS
SECTION 1:
Unless otherwise pro4ed, the following terms will have the respective meanings for all purposes of this agreement:
"Administration Chaz " 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 Administr itive Charge Account.
"Administrative Requements" means the effective edition of ECOLOGY's ADMINISTRATIVE REQUIREMENTS
FOR RECIPIENTS O t 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 Det
remaining years of the
"Centennial Clean W.
"Contract Documents
the project.
"Cost Effective Anal
a water quality proble
"Defease" or "Defeas
and money dedicated
"Effective Date" mea
W QC-2015-KitPHD-00157
Service" means, at the time of calculation, the sum of the Annual Debt Service for the
loan to the last scheduled maturity of the Ioan divided by the number of those years.
Program" means the state program funded from various state sources.
means the contract between the RECIPIENT and the construction contractor for construction of
." means a comparison of the relative cost -efficiencies of two or more potential ways of solving
as described in Chapter 173-98-730 WAC.
De" means the setting aside in escrow or other special fund or account of sufficient investments
pay all principal of and interest on all or a portion of an obligation as it comes due.
the earliest date on which eligible costs may be incurred.
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.
"Loan" means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund
(Centennial) Loan made pursuant to this loan agreement.
"Loan Amount" means either an Estimated Loan Amount or a Final Loan Amount, as applicable.
"Loan Fund" means the special fund of that name created by ordinance or resolution of the RECIPIENT for the
repayment of the principal of and interest on the loan.
"Loan Security" means the mechanism by which the RECIPIENT pledges to repay the loan.
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
"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 an depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes.
"Net Revenue" means the Gross Revenue less the Maintenance and Operation Expense.
"Principal and Interestccount" means, for a loan that constitutes Revenue -Secured Debt, the account of that name
created in the loan fun to be first used to repay the principal of and interest on the loan.
"Project" means the prOect described in this agreement.
"Project Completion)ate" 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 thpayment 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 obli tion 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" meanstle section of the Clean Water Act that provides funding to address nonpoint sources of water
pollution. f
Page ► 6 of 39
"Senior Lien Obligati ns" means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of
execution of this loan greement (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 PolIutio Control Revolving Fund (Revolving Fund)" means the water pollution control revolving fund
established by Chapte 90.50A.020 RCW.
"Termination Date" mans the effective date of ECOLOGY's termination of the agreement.
"Termination Paymen�Date" means the date on which the RECIPIENT is required to repay to ECOLOGY any
outstanding balance o the loan and all accrued interest.
"Total Eligible Projec Cosf' means the sum of all costs associated with a water quality project that have been
determined to be eligi le for ECOLOGY grant or loan funding.
WQC-2015-KitPHD-00157
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
WQC-2015-KitPHD-00157
Agreement No: W2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
approximately three ye after project completion. A representative from ECOLOGY's Water Quality Program may
contact the RECIPIEN to request this data. ECOLOGY may also conduct site interviews and inspections, and may
otherwise evaluate the roject, as part of this assessment.
SECTION 3: THE FOLLOWING CONDITIONS APPLY TO NONPOINT ACTIVITY PROJECTS ONLY
A. Technical Assistance: Technical assistance for agriculture activities provided under the terms of this agreement will
be consistent with the current U.S. Natural Resource Conservation Service ("NRCS") Field Office Technical Guide for
Washington State. Hoi vever, ECOLOGY may accept as eligible technical assistance, proposed practices, or project
designs that do not me these standards if approved in writing by the NRCS and ECOLOGY.
B. Project Status Evali iation: ECOLOGY will evaluate the status of this project 18 months from the effective date of
this agreement. ECOL Y's Project Manager and Financial Manager will meet with the RECIPIENT to review
spending trends, comp etion of outcome measures, and overall project administration and performance. If the
RECIPIENT fails tom flce satisfactory progress toward achieving project outcomes, ECOLOGY may change the scope
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 reductio
B. Section 319 Report
Initial Data Reporting
or increase oversight measures.
s (BMP) Implementation: If the RECIPIENT installs BMPs that are not approved by
►n, the RECIPIENT assumes the risk that part or all of the reimbursement for that activity
For more details regarding BMP Implementation, please reference the Water Quality
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 ir ust complete ECOLOGY's "Federal Clean Water Act Section 319 Grant Load Reductions
Reporting Form" annt ally. This form is used to gather information on pollutant load reduction for each best
management practice i 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 coin 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 mus{ submit the following documents to ECOLOGY before this agreement is signed by ECOLOGY:
1. Federal Funding A*ountability and Transparency Act (FFATA) Form
2. Clean Water Act S4tion 319 Initial Data Reporting Sheet
Contact your ECOLOPY 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`/o;SERVICES 10.00%; EQUIPMENT 8.00%; CONSTRUCTION 10.00%
WBE: SUPPLIES 4.00%; SERVICES 4.00%; EQUIPMENT 4.00%; CONSTRUCTION 6.001/o
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 WBEs 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
Project Title: Regi4 onal Clean Water Revolving Loan Program
Recipient Name: KITE PUBLIC HEALTH DISTRICT
individually.
(e) Use the services an c assistance of the SBA and the Minority Business Development Agency of the Department of
Commerce.
(f) If the prime contra c�Or awards subcontracts, require the prime contractor to take the steps in paragraphs (a) through
(e) of this section.
B. Funding Recognitio : The RECIPIENT must use the following paragraph in all reports, documents, and signage
developed under this agreement:
This project has been f mded wholly or in part by the United States Environmental Protection Agency under an
assistance agreement to the Washington State Department of Ecology. The contents of this document do not necessarily
reflect the views and plicies of the Environmental Protection Agency, nor does the mention of trade names or
commercial products c nstitute endorsement or recommendation for use.
C. Time Extension: T1 a 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 expir ttion 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 T's Legal Council
2. Authorizing Ordinai ice or Resolution
3. Pre -Award Compli& ice Review Report for All Applicants Requesting Federal Assistance
4. Federal Funding Accountability and Transparency Act (FFATA) Form
5. Clean Water State nvolving Fund Initial Data Reporting Sheet
Page 20 of 39
A. Alteration and Elig bility of Project: During the term of this agreement, the RECIPIENT (1) shall not materially alter
the design or structure character of the project without the prior written approval of ECOLOGY and (2) shall take no
action which would a 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 and other municipal castings, hydrants, tanks, flanges, pipe clamps and restraints, valves,
structural steel, reinfoi ced precast concrete, and construction materials. The RECIPIENT may request waiver from this
requirement from the i idministrator of the Environmental Protection Agency. The RECIPIENT must coordinate all
waiver requests throug h 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 fiuther 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 Page 22 of 39
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
whenever they are
at www.omwbe.w
866-208-1064.
2) Making informatioi
frames for contracts a
facilitates participatio:
possible, posting solic
proposal closing date.
3) Considering in the
Disadvantaged Busin
dividing total requires
participation by Disai
4) Encourage co:
of these firms to
5) Using services and
of the Department of
6) If the prime contra
paragraphs Ithrough
sources. Qualified Women and Minority business enterprises may be found on the Internet
or by contacting the Washington State Office of Minority and Women's Enterprises at
n forthcoming opportunities available to Disadvantaged Business Enterprises and arrange time
establish delivery schedules, where the requirements permit, in a way that encourages and
y Disadvantaged Business Enterprises in the competitive process. This includes, whenever
tions for bids or proposals for a minimum of thirty (30) calendar days before the bid or
itracting process whether firms competing for large contracts could subcontract with
Enterprises. For Indian Tribal, State and Local Government RECIPIENTS, this shall include
its when economically feasible into smaller tasks or quantities to permit maximum
Business Enterprises in the competitive process.
g with a consortium of Disadvantaged Business Enterprises when a contract is too large for one
individually.
of the Small Business Administration and the Minority Business Development Agency
)r awards subcontracts, requiring the subcontractors to take the five good faith efforts in
above.
MBE/WBE Reporting 40 CFR, Part 33, Sections 33.302, 33.502 and 33.503. The RECIPIENT agrees to provide
forms: EPA Form 610)-2 DBE Subcontractor Participation Form and EPA Form 6100-3 DBE Subcontractor
Performance Form to 111 its DBE subcontractors, and EPA Form 61004 DBE Subcontractor Utilization Form to all its
prime contractors. Th se 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 Administra
administration provi
identified loans also
The RECIPIENT sl
engineers, vendors,
WQC-2015-KitPHD-00157
RECIPIENT must document that this form was received by DBE subcontractor. DBE
lit 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.
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 RECIPIE
below and to perform
absolute and uncondil
secure the repayment
agreements, and attac
2. For General
3. For General Oblige
RECIPIENT payable
provided by law with
the RECIPIENT.
15-KitPHD-00157 Page 24 of 39
Clean Water Revolving Loan Program
PUBLIC HEALTH DISTRICT
Cs 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
ial, 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,
gents 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 -Secure : Lien Position. This loan is a Revenue -Secured Debt of the RECIPIENT's Utility. This loan
shall constitute a lien a 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
it.
6. Defeasance of the
shall not affect, an el
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 1
Method and
1. Semiannual Payme:
principal and interest
initiation of operation
Thereafter, equal
If the due date for any
agencies, the payment
WQC-2015-KitPHD-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
iyment 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.
innual 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 Iimitations, 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: W -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 outstandh kg, the RECIPIENT irrevocably pledges the Net Revenue of the Utility, including applicable
ULID Assessments in e ULID, to pay when due the principal of and interest on the loan.
Reserve Requirement: or loans that are Revenue -Secured Debt with terms greater than five years, the RECIPIENT
must accumulate a re a for the loan equivalent to at least the Average Annual Debt Service on the loan during the
first five years of the r ayment period of the loan. This amount shall be deposited in a Reserve Account in the Loan
Fund in approximately qual annual payments commencing within one year after the initiation of operation or the
project completion dat , whichever comes first.
"Reserve Account" me ms, for a loan that constitutes Revenue -Secured Debt, an account of that name created in the
Loan Fund to secure payment of the principal and interest on the loan. The amount on deposit in the Reserve
Account may be applic J by the RECIPIENT (1) to make, in part or in full, the final repayment to ECOLOGY of the
loan amount or, (2) if r of so applied, for any other lawful purpose of the RECIPIENT once the Loan Amount, plus
interest and any other qmounts owing to ECOLOGY, have been paid in full.
Utility Local Improver
ient District (ULID) Assessment Collection (if used to secure the repayment of the loan): All
ULID Assessments in
he ULID shall be paid into the loan Fund and used to pay the principal of and interest on the
loan. The ULID Asses
ents in the ULID may be deposited into the Reserve Account to satisfy a Reserve Requirement
if a Reserve Requirem
t is applicable.
L. Maintenance andration
of a Funded Utility: The RECIPIENT shall at all times maintain and keep a fimded
Utility in good repaitaa
orking order and condition and also shall at all times operate the Utility and the business in an
efficient manner and
reasonable cost.
M. Opinion of RECIPT'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 Consultants: The RECIPIENT shall ensure that loan funds provided under this agreement to reimburse
for costs incurred by individual consultants (excluding overhead) is limited to the maximum daily rate for Level IV of
the Executive Schedule (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 sub istence costs for travel performed. Contracts for services awarded using the procurement
requirements in 40 CF k Parts 30 or 31, as applicable, are not affected by this limitation unless the terms of the contract
provide the RECIPIE T with responsibility for the selection, direction, and control of the individuals who shall be
providing services une Dr the contract at an hourly or daily rate of compensation. See 40 CFR 30.27(b) or 40 CFR
31.360) for additional nformation.
O. Prevailing Wage vis -Bacon Act): The RECIPIENT agrees, by signing this agreement, to comply with the
Davis -Bacon Act prev fling 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 su ontractors 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 forbids, pro sals, quotes or other methods for soliciting contracts (solicitation). These wage determinations
shall be incorporated ' ito 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
Page 26 of 39
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: W -2015-KitPHD-00157
Project Title: Regi nal Clean Water Revolving Loan Program
Recipient Name: KTT 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 deer rated cost value of the facilities or property being transferred in any fiscal year comprises no
more than three percen of the total assets of the Utility.
3. The RECIPIENT rec eives 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 fiords 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 anyfer under this paragraph shall be used (1) to redeem promptly or irrevocably set aside for the
redemption of, Senior ien Obligations and to redeem promptly the loan; or (2) to provide for part of the cost of
additions to and bette ents and extensions of the Utility.
S. Sewer -Use Ordinann or Resolution: If not already in existence, the RECIPIENT shall adopt and shall enforce a
inance
sewer -use ordo 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 se jeers and connections be properly designed and constructed.
4) Require all existing d future residents to connect to the sewer system. Such ordinance or resolution shall be
submitted to ECOL upon request by ECOLOGY.
T. Termination and
Termination and Defa4lt 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 Commence 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 60 days past due.
4. Other Cause. The obligation of ECOLOGY to the RECIPIENT is contingent upon satisfactory performance in full
by the RECIPIENT o 11 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 obligatio required of it by this loan agreement.
Procedures for Termir ition. If this loan agreement is terminated prior to project completion, ECOLOGY shall provide
to the RECIPIENT a i ritten notice of termination at least five working days prior to the effective date of termination
(the "Termination Dat "). The written notice of termination by the ECOLOGY shall specify the Termination Date and,
when applicable, the to by which the RECIPIENT must repay any outstanding balance of the loan and all accrued
interest (the "Terming 'on Payment Date").
WQC-2015-KitPHD-00157
Page 28 of 39
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: Reg nal Clean Water Revolving Loan Program
Recipient Name: KIT AP PUBLIC HEALTH DISTRICT
user -charge system anshall adopt a system of user -charges to assure that each user of the utility shall pay its
proportionate share of i he cost of operation and maintenance, including replacement during the design life of the
project.
In addition, the RECIPIENT 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 FEDEL 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 Oatch a federal grant award, the following terms and conditions apply to you.
1. The RECIPIE4T/CONTRACTOR,
by signing this agreement, certifies that it is not suspended, debarred,
proposed for
barment, 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
ason 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 meanings
out in the Definitions and Coverage sections of rules implementing Executive Order 12549.
You may cont
ict the department for assistance in obtaining a copy of those regulations..
4. The RECIPIE
T/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 RECIP14T/CONTRACTOR
further agrees by signing this agreement, that it will include this clause titled
"CERTIFICA ION REGARDING SUSPENSION, DEBARMENT, INELIGIBILITY OR VOLUNTARY
EXCLUSION" without modification in all lower tier covered transactions and in all solicitations for lower tier
covered transa
ctions.
6. Pursuant to 2
FR180.330, the RECIPIENT/CONTRACTOR is responsible for ensuring that any lower tier
covered transa
ction complies with certification of suspension and debarment requirements.
7. RECIPIENT/
ONTRACTOR acknowledges that failing to disclose the information required in the Code of
Federal Regul itions 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, ai
e not suspended or debarred, and will make this proof available to ECOLOGY before requests for
reimbursemen
ts will be approved for payment. RECIPIENT/CONTRACTOR must run a search in
<httl2://www.E
ov> and print a copy of completed searches to document proof of compliance.
RECIPIENT
agreement to
Any RECIPI]
using FFATA
WQC-2015-KitPHD-00157
complete the FFATA Data Collection Form (ECY 070-395) and return it with the signed
that meets each of the criteria below must also report compensation for its five top executives,
i Collection Form.
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.ggv <http://www.fsrs.gov> within 30 days of agreement signature. The FFATA
information will be available to the public at www.usasl2ending.gov <b!W://www.usaVending:gov>.
For more details on FFATA requirements, see www.fsrs.gov:Sh=://www.fsrs.2ov>.
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.html
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: W -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 thRECIPIENT arising under this Agreement shall be transferred or assigned by the RECIPIENT.
5. COMMUNICATIN
RECIPIENT shall mak every effort to maintain effective communications with the RECIPIENT's designees,
ECOLOGY, all affect local, state, or federal jurisdictions, and any interested individuals or groups.
6. COMPENSATIO
a) Any work perform d prior to effective date of this Agreement will be at 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 ir iade on a reimbursable basis for approved and completed work as specified in this Agreement.
c) RECIPIENT is re onsible to understand if costs are eligible. Any questions regarding eligibility should be
clarified with ECOL Y prior to incurring costs. Costs that are conditionally eligible may require approval by
ECOLOGY prior to puThase.
d) RECIPIENT shall iot invoice more than once per month unless agreed on by ECOLOGY.
e) ECOLOGY will not 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 ceive payment through Washington State Department of Enterprise Services' Statewide Payee
Desk. RECIPIENT mi st register as a payee by submitting a Statewide Payee Registration form and an IRS W-9 form at
the website, http://w%vi 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 i.gov.
h) ECOLOGY may, it its 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, a appropriate, or upon completion of an audit as specified herein.
j) RECIPIENT shou d 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 WITH ALL LAWS
RECIPIENT agrees to
omply 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 agre
to be bound by all federal and state laws, regulations, and policies against discrimination.
c) RECIPIENT certilies
full compliance withal] applicable state industrial insurance requirements.
d) RECIPIENT agree
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 havelthe right to immediately terminate for cause this Agreement as provided herein if the
RECIPIENT fails to cdmply 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:
Project Title:
Recipient Name:
loaded into EIM, see i
b) RECIPIENTS are
are collected and proc
http://www.ecy.wa.go
all final GIS data layer
documentation.
157
Clean Water Revolving Loan Program
PUBLIC HEALTH DISTRICT
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:
Page 34 of 39
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 measurt ment data. QAPP is to ensure the consistent application of quality assurance principles to the
planning and executior of all activities involved in generating data. RECIPIENTS must follow ECOLOGY's
Guidelines for Preparh Prep'g Quality Assurance Project Plans for Environmental Studies, July 2004 (Ecology Publication
No. 04-03-030). ECOOGY 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 I
This Agreement will b4 governed by the laws of the State of Washington, and the venue of any action brought
hereunder will be in thSuperior 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 theonstitution and laws of the State of Washington permit, each party will indemnify and hold the
other harmless from against any liability for any or all injuries to persons or property arising from the negligent act
or omission of that p or that party's agents or employees arising out of this Agreement.
14. INDEPENDENT ISTATUS
The employees, volun ers, or agents of each party who are engaged in the performance of this Agreement will continue
to be employees, voluE teers, or agents of that party and will not for any purpose be employees, volunteers, or agents of
the other party.
15. KICKBACKS
RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved in this Agreement to
give up any part of the compensation to which he/she is otherwise entitled or, receive any fee, commission, or gift in
return for award of a si ibcontract hereunder.
16. MINORITY AND WOMEN'S BUSINESS ENTERPRISES (MWBE)
RECIPIENT is encoun tged to solicit and recruit, to the extent possible, certified minority-owned (MBE) and
women -owned (WBE) businesses in purchases and contracts initiated under this Agreement.
Contract awards or rej ctions cannot be made based on MWBE participation; however, the RECIPIENT is encouraged
to take the following a ions, when possible, in any procurement under this Agreement:
a) Include qualified minority and women's businesses on solicitation lists whenever they are potential sources of goods
or services.
b) Divide the total re uirements, when economically feasible, into smaller tasks or quantities, to permit maximum
participation by qualiE ed minority and women's businesses.
c) Establish delivery schedules, where work requirements permit, which will encourage participation of qualified
minority and women's businesses.
d) Use the services ai kd assistance of the Washington State Office of Minority and Women's Business Enterprises
(OMWBE) (866-208-1064) and the Office of Minority Business Enterprises of the U.S. Department of Commerce, as
WQC-2015-KitPHD-001 57
Agreement No: WQC-201 5-KitPHD-00 157 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 terns 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 I 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: W
2 1.
-2015-KitPHD-00157 Page 36 of 39
Project Title: Regnal Clean Water Revolving Loan Program
Recipient Name: KIT Al` PUBLIC HEALTH DISTRICT
materials produced in I
i1fillment of this Agreement, in any manner ECOLOGY deems appropriate. ECOLOGY shall
acknowledge the RECH
IENT as the sole copyright owner in every use or reproduction of the materials.
d) Tangible Propertytights.
ECOLOGY's current edition of "Administrative Requirements for Recipients of Ecology
Grants and Loans," sha
I control the use and disposition of all real and personal property purchased wholly or in part
with funds furnished b
ECOLOGY in the absence of state and federal statutes, regulations, or policies to the contrary,
or upon specific instruations
with respect thereto in this Agreement.
e) Personal Property I
Furnished by ECOLOGY. When ECOLOGY provides personal property directly to the
RECIPIENT for use in
performance of the project, it shall be returned to ECOLOGY prior to final payment by
ECOLOGY. If said pr perty is lost, stolen, or damaged while in the RECIPIENTS possession, then ECOLOGY shall
be reimbursed in cash
r by setoff by the RECIPIENT for the fair market value of such property.
f) Acquisition Proje
s. The following provisions shall apply if the project covered by this Agreement includes funds
for the acquisition of Ig
nd or facilities:
a. RECIPIENT shall
stablish that the cost is fair value and reasonable prior to disbursement of funds provided for in
this Agreement.
b. RECIPIENT shall
Drovide satisfactory evidence of title or ability to acquire title for each parcel prior to
disbursement of funds
rovided by this Agreement. Such evidence may include title insurance policies, Torrens
certificates, or abstracts,
and attorney's opinions establishing that the land is free from any impediment, lien, or claim
which would impair th
uses intended by this Agreement.
g) Conversions. Reg
Lrdless 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 original
y approved without prior written approval of ECOLOGY. Such approval may be conditioned
upon payment to ECO
OGY 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 -
roperty.
21. RECORDS, AUD TS, AND INSPECTIONS
RECIPIENT shall ma' itain complete program and financial records relating to this Agreement, including any
engineering document, tion and field inspection reports of all construction work accomplished.
All records shall:
a) Be kept in a mann r which provides an audit trail for all expenditures.
b) Be kept in a comm on file to facilitate audits and inspections.
c) Clearly indicate to receipts and expenditures related to this Agreement.
d) Be open for audit r inspection by ECOLOGY, or by any duly authorized audit representative of the State of
Washington, for a perid of at least three (3) years after the final grant payment or loan repayment, or any dispute
resolution hereunder. 7
RECIPIENT shall prode clarification and make necessary adjustments if any audits or inspections identify
discrepancies in the r tords.
ECOLOGY reservesa right to audit, or have a designated third party audit, applicable records to ensure that the state
has been properly inv ced. Any remedies and penalties allowed by law to recover monies determined owed will be
enforced. Repetitive ' stances 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 anauthorized state, federal or local representative for inspection at any time during the course of
this Agreement and foi at least three (3) years following grant or loan termination or dispute resolution hereunder.
RECIPIENT shall protide right of access to ECOLOGY, or any other authorized representative, at all reasonable times,
in order to monitor an4 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 fiords.
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: W2015-KitPHD-00157
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 sol discretion of ECOLOGY, for failing to perform an Agreement requirement or for a material
breach of any term or c ndition. If this Agreement is so terminated, the parties shall be liable only for performance
rendered or costs incun ed in accordance with the terms of this Agreement prior to the effective date of termination.
Failure to Commence Work. 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 i1to
obligations under this Agreement. In the event the RECIPIENT unjustifiably fails, in the
opinion of ECOLOGY perform any obligation required of it by this Agreement, ECOLOGY may refuse to pay any
furtherfiords,terminatin
whole or in part this Agreement, and exercise any other rights under this Agreement.
Despite the above, the CIPIENT shall not be relieved of any liability to ECOLOGY for damages sustained by
ECOLOGY and the Sti to of Washington because of any breach of this Agreement by the RECIPIENT. ECOLOGY
may withhold payment; for the purpose of setoff until such time as the exact amount of damages due ECOLOGY from
the RECIPIENT is detc rinined.
b) For Convenience
ECOLOGY may term' iate for convenience this Agreement, in whole or in part, for any reason when it is the best
interest of ECOLOGY with a thirty (30) calendar days prior written notification to the RECIPIENT. If this Agreement
is so terminated, the pa rties shall be liable only for performance rendered or costs incurred in accordance with the terms
of this Agreement prio to the effective date of termination.
Non -Allocation of Funds. ECOLOGY's ability to make payments is contingent on availability of funding. In the event
funding from state, federal or other sources is withdrawn, reduced, or limited in any way after the effective date and
prior to the completion or expiration date of this agreement, ECOLOGY, at its sole discretion, may elect to terminate
the agreement, in who or part, or renegotiate the agreement, subject to new funding limitations or conditions.
ECOLOGY may also I to suspend performance of the agreement until ECOLOGY determines the funding
insufficiency is resolv . ECOLOGY may exercise any of these options with no notification or restrictions.
If payments have been Idiscontinued by ECOLOGY due to unavailable funds, the RECIPIENT shall not be obligated to
repay monies which h been paid to the RECIPIENT prior to such termination.
RECIPIENT's oblig
availability of funds
c) By Mutual Agrt
ECOLOGY and the
agreement.
d) In Event of Termi
All finished or imfinii
materials prepared by
ECOLOGY and the R
completed on such do
Nothing contained hei
accordance with Recc
W QC-2015-KitPHD-00157
to continue or complete the work described in this Agreement shall be contingent upon
the RECIPIENTs governing body.
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.
Page 38 of 39
shall preclude ECOLOGY from demanding repayment of all funds paid to the RECIPIENT in
of Funds, identified herein.
Agreement No: WQC-2015-KitPHD-00157
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
Page 39 of 39
53
th
r
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 fiunished 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 Z(�'-day ofU�, 201
Clallam County t3PA4-,C ° j Cori► n� ss<aN
By: y. tv
` .�� ma. n
k�
Title: aha,i r
Executed this T.) da -V'6
Jefferson County
6
Title: .12
y
Hood Canal Regional Septic Loan Program Performance Assessment Page 4
Executed this 2Llday of3 QmM,hn,�. 201]
Executed this q --day o 201
Mason County—�C
Kitsap County,
Y
y
Title; _ Vru�1�(
Title: CV\W—
Executed this day of M A , 201
ap Publ th District
By: A�---
Tit owl ts-rAAr0/'
Date:
lul�L;
zol
APPIQJ4f _AS TO FORM ONLY BY THE
Clalla i County Prosecuting Attorney
Z3J16
Date: AVJ,(U4rU4jv,/
APPROVED AS TO FORM ONLY6Y THE
Jefferson County Prosecuting Attorney
.f
PILO D AS TO FORM ONLY B THE
Kitsap County Prosecuting Attorney
t
Date:
APPRIVIFt) AS YO FORM ONLY BY THE
Mason County Prosecuting Attorney
Hood Canal Regional Septic Loan Program Performance Assessment Page 5
Craf13 Clean Water Loan Guidelines Hood Canal_ProgramFa2015.
(consisting of 10 pages)
To
INTERLOCAL AGREEMENT
Between
Clallam County
Jefferson County
Kitsap County
Mason County
Kitsap Public Health District
Craft3 Clean Water Loan
GUIDELINES
Hood Canal Program
February 2015
Cmfl3 Clean Water Loan Guidelines 2015 Page 1 of 10
Table of Contents
I.
Document Name and Purpose..............................................................................................................3
a.
Name.................................................................................................................................................3
b.
Purpose.............................................................................................................................................3
11.
Loan Overview.......................................................................................................................................3
a.
Background ................................................................................................................................3
b.
Participants and roles........................................................................................................................3
c.
Key contacts......................................................................................................................................4
III.
Authority..................................................................................................................................4
a.
Oversight and administration...........................................................................................................4
b.
Governing document........................................................................................................................4
c.
Loan Monitoring..........................................................................................................................4
d.
Credit determination authority.........................................................................................................4
e.
Confidentiality...................................................................................................................................4
IV.
Loan Eligibility..................................................................................................................................5
a.
Property Ownership Types: ............................................................................................................... 5
b.
Eligible Property Types: .................................................... ............... .............5
c.
Eligible Septic System Characteristics: (system must meet one of the following conditions) .......... 5
d.
Eligible incomes..... .......................................................................................5
................................. .. .
e.
The following are not eligible for the Clean Water Loan: ............... I ................................................. 5
V.
Uses of Loan Proceeds..........................................................................................................................5
a.
Allowable Septic System Capacity increase: ..................................................................................... 6
a.
Eligible uses of loan proceeds: .......................................................................................................... 6
b.
Limited Eligibility...............................................................................................................................6
c.
Prohibited Uses of Funds..................................................................................................................6
VI. Loan Structure......................................................................................................................................7
a. Overview.......................................................................................................................................7
b. Application requirements.................................................................................................................7
c. Rates & Terms........................................................................................................................ ......7
d. Loan Fees . ........................... ....... ..... ....................................................................8
e. Operation, Maintenance and Monitoring (O&M) Reserve and Requirements................................8
f. Collateral...............................................................................................................................8
g. Loan Loss Reserves (LLR).......................................................................................................8
VII. Uses of the Clean Water Loan for Commercial Properties...................................................................9
a. Rates and terms for commercial properties.....................................................................................9
b. Application and underwriting for commercial property owners......................................................9
VIII. Credit Administration............................................................................................................................ 9
IX. Financial Administration.......................................................................................................................9
a. Segregation of assets........................................................................................................................9
b. Cost Sharing.......................................................................................................................................9
c. Responsibility....................................................................................................................................9
d. Delinquency rate expectations.........................................................................................................9
e. Defaults.......................................................................................................................................9
f. Allowance for Losses. ............................................................................................................9
g. Collection Efforts and Filing Judgments............................................................................................9
X. Marketing and Outreach.......................................................................................................................9
a. Implementation roles and responsibilities.....................................................................................10
XI. Reporting.............................................................................................................................................10
a. Loan Data.......................................................................................................................................10
b. Financial Reporting..........................................................................................................................10
Craft3 Clean Water Loan Guldellnes 2019 Page 2 of 10
Document Name and Purpose
These Guidelines, together with attachments, govern the Craft3 Clean Water Loan ("Loan"). This document has
been approved for use by the Hood Canal Clean Water 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 Craft3 Clean Water 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 orexceed applicable code requirements
of the participating jurisdictions. Additional goals of the Clean Water Loan include:
• 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 local businesses and the contributions of onsite septic professionals to of the shellfish industry
and economic activity in participating jurisdictions.
• Reduce sources of water pollution
• Protect vulnerable habitat/marine life
• Improve public health
• Help people stay in their homes
II. Loan Overview
a. Background
The Clean Water Loan has been specifically designed to assist property owners who depend on onsite
sewage treatment systems to treat wastewater. The Loan provides financial assistance to cover 100% of
the costs associated with the design, permitting, installation, testing, and ongoing maintenance of an
approved onsite system with the appropriate technology for a particular site. Loan amounts
accommodate 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.
This Loan Is not a code enforcement strategy. Rather, it is intended to help reduce the financial barriers
that prevent property owners from taking corrective action to repair, upgrade or replace failed, obsolete
and/or inefficient existing septic 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. Craft3 achieves Its mission by providing loans and assistance to
Individuals, entrepreneurs, non -profits, and others and specializes in helping those who don't normally
have access to financing. Craft3 is responsible for administering Clean Water Loans in the eligible areas of
the jurisdictions in a manner that reflects locally approved policies, land use regulations, applicable health
codes, and Washington State consumer lending regulations. Craft3 specializes in transactions that are
generally not available through traditional banks and Is more flexible in qualification requirements (wider
range of credit, more than just a credit score), and repayment terns. The Loan rates and terms were
designed specifically to be accessible to borrowers with low incomes, and may be available to those with
existing debt, and previous credit problems.
b. Participants and roles
1. 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.
2. Craft3: 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
Craft3 Clean Water Loan Guidellnes 2015 Page 3 of 10
Clean Water 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 Clean Water 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.
3. Sovereign Lands: The Port Gamble S'Klallam and Skokomish Indian Tribes may be participating
jurisdictions if they deem the Loan relevant to their needs and 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 Clean Water 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 Clean Water 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 Clean Water 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 Clean Water 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 Clean Water 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 Clean Water 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.
d. 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.
e. 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 (signing).
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
Craft3 Clean Water Loan Guidelines 2015 Page 4 of 10
contractors. Craft3 will never share Personally identifiable Information (PII), such as date of birth and
social security number.
IV. Loan Eligibility
The following are eligible to apply for the Clean Water Loan:
a. Property Ownership Types:
The loan may serve a range of property ownership structures. The following are eligible to apply for
the Clean water Loan:
• Person, corporation, or partnership that owns real property located within the boundaries of
participating health jurisdictions
• Person, corporation, or partnership that has the legal right to encumber the real property with a
beneficial interest of Craft3 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
b. Eligible Property Types:
• Single-family Residential Properties (1-4 units)
• Owner -occupied
• Non -owner occupied (e.g. rental properties, vacation homes, etc.)
• Multi -family Residential Properties more than 4 units, (e.g. apartment complexes, etc.)
•' Commercial Properties — residential and non-residential.
c. Eligible Septic System Characteristics: (system must meet one of the following conditions)
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
qualified on-site professional).
3. Documentation that a homeowner has been officially referred by a participating jurisdiction or
partner.
d. Eligible Incomes
There are no income restrictions for loan applicants due to the understanding that access to credit
challenges are not limited to those with lower incomes. However, applicants that are financially
distressed may apply for a loan' regardless of the condition of their septic system.
Financially distressed is defined as:
• A household earning 80% or less of the county median income;
• 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.
e. The following are not eligible for the Clean Water Loan:
1. Those that do not have the legal right to encumber the real property with a beneficial interest of
Craft3 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,
2. Propetties with have unpaid property taxes and/or other assessments levied on the property by
any local or state taxing district for prior two tax years;
3. Property for which there is no record of permitted improvements;
4. Properties located in an area identified for development of a shared or community sewage
treatment system. (Local jurisdictions to provide this information to Craft3).
5. Septic system upgrades that are not permitted and/or that are not authorized by applicable code
(e.g. terra lifting is prohibited).
V. Uses of Loan Proceeds
Loan proceeds may be used to fund the necessary work identified by the onsite designer and/or
contractors 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.
The Clean Water Loan may be used to finance the following:
Craft3 Clean Water Loan Guidelines 2015 Page 5 of 10
a. Allowable Septic System Capacity increase:
Craft3-financed septic systems may support the following increases in treatment capacity:
• Single Family: One additional bedroom capacity
• Small Commercial and/or Multi -Family System: up to 25% increase in treatment capacity.
The intention with this requirement is for the Clean Water Loan to support septic repair and
replacement, not significant property expansion and upgrades. Some exceptions to this rule may be
warranted and will be allowable upon approval by the Advisory Hoard.
a. Eligible uses of loan proceeds:
Loan funds may be used to pay for any of the following expenses associated with repair, upgrading
and/or replacement of onsite septic systems, provided that the approach Is explicitly authorized by
applicable code (e.g. terra lifting Is prohibited). These requirements will be monitored by participating
jurisdictions during the permitting process.
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.
3. Permitting: Permit application and regulatory inspection fees; including any necessary cultural
resources permitting and inspections.
4: Installation: Installation costs for local health Jurisdiction -permitted repairs, upgrades and/or
replacement systems. All installations costs must be clearly stated in the contractor's bid as a
condition of loan closing. This may include:
• Maintenance and pumping needs that area necessary part of the system repair and
replacement work
• Repair and/or relocation of a well, driveway, and/or landscaped area only if the new system
Installation requires relocation and/or destruction of the existing asset.
S. Loan fees and closings: Loan fees, interest and closing costs including third party fees such as
credit reports and lien filing.
6. Water conservation measures: Costs associated with installation of fixtures and fittings that
reduce water consumption, to a maximum of $1,000;
7. Habitat creation: Costs associated with the creation of riparian (shoreline) habitat, to a maximum
of $1,000;
8. Operation & Maintenance Reserve: To ensure that the asset is protected and the new system is
property maintained overtime, Craft3 will, as a rule, add $1,750 to each borrower's loan amount
to enable the property owner to pay for 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. This amount will be held In reserve by
Craft3 for disbursement upon request by the borrower. 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 strycture 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.
b. Umited Eligibility
Craft3 will consider loans for the community and cluster systems serving multiple properties. Total
loans for such systems shall not exceed 10% of total available Clean Water Loan grant capital 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.
c. Prohibited Uses of Funds.
The loan funds may not be used for the following purposes:
1. Any system that is not replacing, repairing or improving an existing system.
2. Any improvements not recognized as permitted and compliant by local health jurisdictions.
Craft3 Clean Water Loan Giuidelines 2015 Page 6 of 10
3. Any costs for labor or other services not incurred by a licensed, county -approved, or otherwise
certified professional.
4. Any repairs to existing connections to municipal or public sewage treatment systems.
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.
VI. Loan Structure
a. Overview
Clean Water loan terms and conditions are specifically designed to address the diverse needs and
situations of property owners in the participating jurisdictions, including those with low incomes, fixed
incomes, and those who have experienced other financial hardships. In the interest of maximizing the
Impact of the Clean Water Loan on human health and water quality, Craft3 will tolerate higher risk
than a traditional lender 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 Clean Water loan applications are available online, from Craft3 offices, by mall, and through
local distribution systems. A complete Craft3 Clean Water Loan application will consist of the personal
or business financial information required to make a credit determination (e.g. income documentation,
credit report) plus and the following details about the septic project;
• Demonstration that the project meets the eligibility requirements;
• 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 IL Terms
Craft3 shall determine pricing policy in collaboration with the Advisory Board. The chart below
establishes the current (as of 1/1/15) loan terms and Interest rates for aualifled borrowers
Annual HH
Interest and Annual
Repayment
Example $15,000 loan amount**
Income
Percentage Rate (APR)
Terms
Up to
1.99%
No monthly payments*
Example $15,000 loan amount: **
$35,000
(2.08% APR)
required.
no payments for 179 months, then
$20,449 balloon payment due on the
180th month
$35,001-
3.99%
Monthly interest only
Example $15,000 loan amount: **
$55,000
(4.42% APR)
payments**
179 monthly interest -only payments of
$53.29, plus $15,051 balloon payment
due on the 120th month
Greaterthan
4.99%
•Monthly principal and
Example $15,000 loan amount: **
$55,000
(5.72% APR)
interest payments **
$124.31 due monthly for 180 months/
15 year term
CLEAN VVATER
LOANS ••e•
•
Any
4.99%
Monthly principal and
Example $15,000 loan amount: **
(5.72% APR)
interest payments**
$124.31 due monthly for 180 months/
15 year term
COMMERICAL
n/a. Craft3 Business lending policies will be
used to evaluate business customers.
*Loan availability, terms, and conditions current as of 6/1/2013, and are subject to change. Residential property examples Include financing
of standard third party and lender loan fees totaling approximately $725. Not all applicants will qualify. Equal Housing Lender. Craft3 NMLS
113#390159.
** Principal balance and Interest (if applicable) due on sale, transfer, refinance, or maturity. If, after 15 years, homeowner has not sold,
refinanced, or otherwise transferred ownership of the property, is in compliance with the loan agreement, and meets relevant
lending/program criteria, the 15 -year loan period may be extended, at the lender's sole discretion, for up to an
additional five years.
Craft3 dean Water Loan Guidelines 2015 Page 7 of 10
d. Loan Fees
Craft3 Loan Policy shall establish a schedule of applicable loan fees. The fees collected shall be fully
documented cover its reasonable costs of delivering and servicing the Clean Water Loan. All fees may
be included in the loan amount. The current fee schedule to borrowers for the Clean Water Loan
consists of:
• Origination Fees: Craft3 shall be entitled to charge 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, 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.
e. 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.
• 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 Clean Water Loan: Craft3 loan documents contain
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.
o! If borrower defaults on loan, 0&M funds will no longer be available.
f. Collateral
All Clean Water Loans shall be secured by a security interest in the borrower's real property assets
(e.g. UCC, 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 (LLR).
Standard LLR: In order to offset the risk to the revolving loan fund of loan defaults, Craft3 has
established a Clean Water loan loss reserve consistent with generally accepted accounting procedures
(GAAP) and portfolio performance which may constitute approximately 5-10% of loans outstanding.
Craft3 Clean Water Loan Guidelines 2015 Page a of 10
Craft3 will ensure that net assets held in reserve will be maintained at levels that are sufficient to
absorb any losses, and as needed will replenish the loan fund. In the event of a loss, Craft3 may
transfer 100% of the cost of the loan from the Loan Loss Reserve into RLF fund for ongoing use. Upon
request, Craft3 shall report to the Advisory Board, upon request, on the status of the Loan Loss
Reserves. 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 to the Advisory Board.
VII. Uses of the Clean Water 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 up to a 8% rate with required monthly payments,
including Interest, for a term up to 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.
b. Application and underwriting for commercial property owners
Craft3 will provide a business loan application from commercial property owners that covers relevant
business financial and background documents. Documentation of eligibility for the Clean Water 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.
VIII. Credit Administration
Craft3 is responsible for administration of the Clean Water Loan consistent with the organization's Credit
Policy. Craft3 has sole authority for adopting and Implementing Credit Administration Policy for the Clean
Water Loan. Craft3 will ensure that adequate processes and procedures are in place to ensure good credit
quality management.
IX. Financial Administration
The use of private and public resources available for the Clean Water Loan shall be governed by separate
agreements between Craft3 and each funding entity their requirements as to the handling of funds.
a. Segregation of assets
Assets designated as the Clean Water Loan Fund Capital will not be used to fund operations for the
corporation as whole.
b. 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.
c. Responsibility
Craft3 shall have full responsibility for the financial administration of the Clean Water Loan consistent
with GAAP.
d. 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.
e. 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) borrower fails to comply with reasonable provisions
set forth In the loan documents. 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.
f. 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/or the Advisory Board on request.
g. 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 Clean Water 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;
Craft3 dean Water Loan Guidelines 2015 Page 9 of 10
XI.
• 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 and contractors 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
4. Craft3 will work closely with participating health jurisdictions and other Identified stakeholders to
promote the Clean Water 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 N 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.
Reporting
a. 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 with information, such as:
• Number of applicants 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 Number and dollar amount of
defaulted loans
• Losses expensed to date and amount of reserve for future losses
• Total lending by household income status
b. Financial Reporting
Craft3 shall provide financial reports, upon request, to the Advisory Board to provide an overview of
the financial health of the program. Reports may include information, such as:
• Availability of lending resources for future program activity; and/or
• Status of the loan loss reserve
• Revenues derived from fees, interest, contract and grant revenues
• Expenses attributable to the delivery of the Clean Water Loan, including indirect administration
costs, loss reserves, and the expensing of loan losses;
Craft3 shall also make available upon request, the program budget and the findings of Its annual
Independent audit and compliance assessments.
Craft3 Clean Water Loan Guidelines 2015 Page 10 of 10