HomeMy WebLinkAbout075 96ATTACHMENT 4
RESOLUTION NO. 75-96
A RESOLUTION COMMITTING TO THE REPAYMENT OF LOAN, STATE
OF WASHINGTON, WASHINGTON STATE WATER POLLUTION
REVOLVING LOAN FUND (SRF)
WHEREAS, the State of Washington has established a revolving loan program to
address and correct water pollution problems statewide, and
WHEREAS, Jefferson County, over the past six years, has actively been
identifying and correcting non-point pollution problems,, and
WHEREAS, assistance to individuals, particularly the low income, is required if
correction of water quality problems is to be accomplished, and
WHEREAS, Jefferson County has applied for and received loan approval from -
SKF to provide financial assistance in the correction of non-point pollution
problems, primarily onsite sewage system repair and upgrade, and
WHEREAS, the SRF loan requires commitment of repayment, and
WHEREAS, there will, in all likelihood be a lag between the time payment is due
from SKF and when Jefferson County will receive payment from funds reloaned,
NOW THEREFOR BE IT RESOLVED, that Jefferson County does hereby
commit that portion of its current expense budget necessary to repay SKF as per
the repayment schedule established in the loan agreement,
BE IT FURTHER RESOLVED, that all SKF loan funds will be paid in full within
fourteen (14) years from the effective date of the final loan agreement.
APPROVED AND ADOPTED this_~?t~__~day of ~7..//..t_~ , 1996.
~d Wojt, [21~airman~
~~ATTEST ~/t~UWJ~ ./'~-KQVED AS T'O FO~,i~~t
Clerk of the Board' Jefferson County Prosecuting Attorney
Lorna Delaney David Skeen
22 0
VOl_ J'A,r,T 'i _
STATE REVOLVING FUND
LOAN AGREEMENT
BETWEEN THE
STATE OF WASHINGTON DEPARTMENT OF ECOLOGY
AND
JEFFERSON COUNTY
THIS is a binding loan agreement entered into by and between the state
of Washington, Department of Ecology, hereinafter referred'to as the
"DEPARTMENT" and Jefferson County, hereinafter referred to as the
"RECIPIENT." The purpose of this agreement, hereinafter referred to as
this "Agreement," is to provide funds to the RECIPIENT to carry out the
activities described herein.
GENERAL INFORMATION
Project Title:
Septic System Repair Program II
Loan Number:
L9700010
Recipient Name and Address:
Jefferson County
P.O. Box 1220
Port Townsend, WA
98368
Recipient Contact
and Telephone Nun~ber:
Linda Atkins
(360) 385-9444
Recipient Federal ID Number: 91-6001322
Department Address:
Washington State Department of Ecology
Water Quality Program
P.O. Box 47600
Olympia, WA 98504-7600
DEPARTMENT Project Manager
and Telephone Number:
DEPARTMENT Financial Manager'
and Telephone Number:
Jeannette Barreca
(360) .407-6556
Mel Lick
(360) 407-6542
DEPARTMENT Funding Source:
Total Project Cost
Total Eligible Project Cost
Loan Amount
State Revolving Fund
$105,000
$105,000
$100,000
Jefferson County
Septic System Repair Prograra II Project
Loan No. L9700010
Subject to all of the terms, provisions, and conditions of this
Agreement, and subject to the availability of state and federal funds,
the DEPARTMENT will loan the sum of ONE-HUNDRED-THOUSA/qD-AND-NO\iO0'S
DOLI2%RS ($100,000), herein referred to as the Loan Amount, to the
RECIPIENT. (The final loan amount may vary according to the terms
herein, depending upon disbursements and accrued interest.)
Interest Rate:
Term of Loan:
The interest rate shall be 4.2 percent per annum.
The term of the loan shall be 14 years.
The effective date of this Agreement'shall be the date this Agreement
is signed by the DEPARTMENT'.s Water Quality Program Manager. Any work
performed prior to the effective date of this Agreement without prior
written authorization will be at the sole expense and risk of the
RECIPIENT.
This Agreement shall remain in effect until the date of final repayment
of this loan, unless terminated earlier according to the provisions
herein.
Any changes, additions, and/or deletions in Scope of Work shall require
prior approval by letter from the DEPARTMENT. The Scope of Work is for
the purpose of describing the Project to be constructed and does not
comprise an eligibility determination for components.
TABLE OF CONTENTS.
Page
ATTACHMENT 1.
ATTACHMENT 2.
ATTACHMENT 3.
ATTACHMENT 4:
DEFINITIONS
GENEP~AL TERMS AND CONDITIONS PERTAINING TO
GRANT AND LOAN AGREEMENTS
LOAN REPAYMENT SCHEDULE
AUTHORIZING RESOLUTION/ORDINANCE
VOL
Page 2 of 16
PART I.' PROJECT DESCRIPTION ............. 3
PART II. PROJECT BUDGET ............... 3
PART III. AUTHORITY .................. 3
PART IV. REPAYMENT AND SECURITY PLEDGE ........ 4
PART V. RECIPIENT'S COVENANTS AND AGREEMENTS .... 5
PART VI. PROJECT COMPLETION SCHEDULE ......... 5
PART VII. DISBURSEMENTS ................ 6
PA/{T VIII. REPAYMENTS ................. 6
PART IX. LOAN DEFAULT ................ 8
PART X. SCOPE OF WORK ................. 8
PART XI. SPECIAL TERMS AND CONDITIONS ....... 11
PART XII. INCORPORATION OF DOCUMENTS ........ 13
PART XIII. ALL WRITINGS CONTAINED HEREIN ........ 14
PART XIV. OPINION OF LEGA/L COUNSEL .......... 15
SIGNATURE PAGE ............... 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
PART I.
PROJECT DESCRIPTION
The RECIPIENT shall use the fusds received from the DEPARTMENT under
this agreement to maintain capitalization of a two-year revolving fund
to help residents repair or upgrade existing on-site sewage disposal
systems. The majority of the funds will go to construction activities,
although they will also pay for site evaluation, problem
identification, project design, review, inspections, and.follow-
through..Operations and maintenance information will be provided to the
property owner to ensure proper long-term function of the systems.
PART II. PROJECT BUDGET
Elements Total Total SRF Loan
Project Eligible Amount
Cost Project
Cost
A. Contracts/Services $105,000 $105,000 $100,000
B.
C.
D.
E.
I $105,000 $105,000 $100,000
Totals
Source and T~e of Funds for the. Pro~ect. Federal/State/Local.
SRF Loan (FY 96) 95.24% $100,000
Local Funds $ 5,000
Total ~..! 05,000
PART III. AUTHORITY
This loan is authorized by the RECIPIENT pursuant to the
Constitution and laws of the state of Washington, and laws
amendatory thereof and supplemental thereto, and the RECIPIENT's
authority and as evidenced by the attached duly adopted Resolution
(Attachment 4)4 15~q~
The RECIPIENT warrants the following:
1. It is a duly formed and legally existing political
subdivision of the state of Washington and has full corporate
power and authority to execute, deliver, and perform .its
obligations under this Agreement.
VOL 0 D
Page 3 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
¸2.
There is no material adverse information relating to the
Project or this Agreement known to RECIPIENT, which has not
been disclosed in writing to the DEPARTMENT.
No litigation is now pending or, to the RECIPIENT'S
knowledge, threatened, seeking to restrain or enjoin the
execution of this Agreement, or the fixing or collection of
the revenues, rates, and charges pledged to pay the principal
and interest on the Loan, or in any manner questioning the
proceedings and authority under which the Loan is 'authorized,
and neither the corporate existence or boundaries of the'
RECIPIENT nor the title of the present officers to their
respective offices is being contested, and that no authority
or proceeding for the execution of this Agreement has been
repealed, 'revoked, or rescinded.
This obligation does not create an indebtedness of the
RECIPIENT in excess of any constitutional or statutory
limitations.
PART IV. REPAYMENT AND SECURITY PLEDGE
Nature of RECIPIENT'S Obligation. The obligation of the RECIPIENT
to make the loan payments from the sources identified herein and
to perform and observe 'the other obligations on its part contained
herein shall be absolute.and unconditional, and shall not be
subject to diminution by setoff, counterclaim, or abatement of any
kind.
General Obligation. This Loan is a General Obligation Debt of the
RECIPIENT and the RECIPIENT irrevocably pledges that for so long
as the Loan is outstanding, it will include in its budget and levy
taxes annually .within the constitutional and statutory tax
limitations provided by law without a vote of the electors of the
RECIPIENT, 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 therefor, 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.'
Page 4 of 16
22 O
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
PART V. RECIPIENT"S COVENANTS AND AGREEMENTS
'Acceptance. The RECIPIENT accepts and agrees to comply with all
terms, provisions, conditions, and commitments of this Agreement,
including all incorporated documents, and to fulfill all
assurances, declarations, representations, and commitments made
by the RECIPIENT in its application, accompanying documents, and
communications filed in support of its request for a loan.
Accounts and Records. The RECIPIENT will keep proper and separate
accounts and records in which complete and separate entries shall
be made of all transactions relating to this Agreement.
Time of Essence. Time is of the essence and all terms and
conditions shall be of the essence of this Agreement.
Do
Execution in Several Countez~oarts. This Agreement may be executed
in counterparts and each such counterpart shall for all purposes
be deemed to be an original, and all such counterparts, or as many
of them as the RECIPIENT and the DEPARTMENT shall preserve
undestroyed, shall together constitute but one and the same.
instrument.
Except that all proposed amendments to this Agreement must be
affirmed in writing by the DEPARTMENT before the amendment shall
become part of this Agreement.
Oral A~reements or Oral commitments. This Agreement cannot be
altered, amended, or discharged by any oral 'agreement or oral
commitment.
PART VI. PROJECT COMPLETION SCHEDULE
The RECIPIENT agrees to complete the Project in accordance with
the following schedule. In the event that the schedule is not
complied with, and after a thirty-day (30) grace period, the
DEPARTMENT, after due notice to the RECIPIENT, may withdraw the
loan and demand any outstanding balance of principal and interest-
be paid immediately. Any changes to this schedule must be
effected through a formal loan amendment.
1. Construction Start Date: [N/A]
(Date in Notice ~o Proceed)
Project Completion Date:
Initiation of Operation Date:
Useful Life of the Project:
March 31, 1999
March 31, 1999
20 years
Page 5 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
Pro~ect Completion Date. If the Project is completed before the
estimated Project Completion Date established herein, including
loans to property owners, the Project Completion Date shall become
the Initiation of Operation date.
PART VII. DISBURSEMENTS
Certification. Each request by the RECIPIENT for disbursement
shall constitute a certification by the RECIPIENT to the effect
that all representations made in this 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 loan plus accrued
interest, have occurred since the date of this Agreement unless
specifically disclosed in writing by the RECIPIENT in the request
for disbursement.
Be
Accrued Interest. If the terms of this Agreement require interest
to be accrued, interest will begin to accr.ue on each disbursement
from the date that the warrant is mailed to the RECIPIENT.
PART VIII.
REPAYMENTS
Final Repayment Schedule. When the project has been fuliy
completed or the Initiation of Operation date has occurred (if
appropriate) and if earlier'than the Project Completion Date, the
DEPA/{TMENT and RECIPIENT will execute an agreement amendment,
which details the final loan amount, and the DEPARTMENT will
prepare a final loan repayment schedule. The final loan amount
will be the combined total of actual disbursements and all accrued
interest, if any.
Be
Semiannual Payments. Notwithstanding any other provision of this
Agreement, the first semiannual payment of principal and interest
due on this loan shall be paid nOt later than one year after
Initi.ation of Operation, or five years from the first disburse-
kent, whichever is earlier. 'Equal payments shall be due every six
months 'after this first payment due date.
A formal amendment is required to change the amount of the
semiannUal principal and interest payments. The RECIPIENT will
continue to make semiannual payments based on the loan agreement
as amended.
Page 6 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
Payments are to be mailed to:
Cashiering Section
Washington Department of Ecology
P.O. Box 5128
Lac.y, WA 98509-5128
Prepayment of Loan. So long as the DEPARTMENT shall hold this
Loan, the RECIPIENT may prepay the entire unpaid principal balance
and accrued interest of the Loan, or any portion of the remaining
unpaid principal balance of the Loan. Any prepayments of any'
portion of the unpaid principal balance of the Loan will be
applied first to any accrued interest due, and then to the
outstanding principal balance. If the RECIPIENT elects to prepay
for the entire remaining unpaid balance and.accrued interest, the
RECIPIENT shall give the DEPA/~TMENT notice in writing, at least
thirty days prior to the prepayment date.
Late Payments. If any amount of principal and or interest payable
to the DEPARTMENT pursuant to this agreement remains unpaid after
it becomes due and payable, interest shall, accrue at the rate of
one (1) percent per month on the amount of such delinquent pay-
ments from and after the due date until it is paid in full', and
the RECIPIENT hereby agrees to pay such interest; Provided, that
no such interest shall be charged to or be payable by the
RECIPIENT under this article unless such delinquency continues for
more than thirty (30) days. Nothing in this provision affects the
DEPARTMENT'S default rights reserved in this agreement.
Phased or Segmented Pro~ects.. If the Project has been phased or
'segmented, the provisions for repayment shall apply to the
completion of the individual phases or segments.
Pro~ect Refinancing. If the RECIPIENT refinances this Project or
obtains any grant or loan to finance the Project additional to
those listed in Part II without the written consent of the
DEPARTMENT, the DEPARTMENT may declare a breach of this Agreement_
and may declare any unpaid loan principal and interest inunediately
due and payable. In such a case, any grant or loan obtained by
the RECIPIENT to finance or refinance the Project shall be used to
repay the RECIPIENT~S obligations to the DEPARTMENT under this
Agreement unless the DEPARTMENT finds, in its sole discretion,
that repayment from the additional grant(s) or loan(s) would not
be in the public interest.
VOl_
Page 7 of 16
Jefferson County
Septic Systern Repair Program II Project
Loan No. L9700010
PART IX. LOAN DEFAULT
The RECIPIENT will be in default of its obligations under this
agreement when any loan repayment becomes sixty (60) days past due
or when any provision of this agreement is not executed in full.
Bm
In the event of a default, including a declaration of a default by
the DEPARTMENT, the DEPARTMENT may cease making further
disbursements under this Agreement and may declare the principal
and interest on the loan immediately due and payable.
In accordance with RCW 90.50A..060, in event of default, any state
funds otherwise due to the RECIPIENT may be withheld and applied
to the indebtedness.
The state of Washington reserves the right to take any action 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 of this Agreement.
.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 t.he prevailing party as
that term is defined in RCW 4.84.330.
PART X. 'SCOPE OF WORK
The RECIPIENT shall ensure that this project is completed according to
the details of this agreement. The RECIPIENT may elect to use its own
forces to perform and complete project related work.
The RECIPIENT certifies by signing this agreement that all negotiated
interlocal agreements necessary for 'the project are, or will be,
consistent with the terms of this grant agreement and Chapter 39.34 RC~
"Interlocal Cooperation Act." The RECIPIENT shall submit a copy of
each interlocal agreement, necessary for this Project, to .the
DEPARTMENT.
The RECIPIENT certifies by signing this agreement that all applicable
requirements have been satisfied in the procurement of professional
services and eligible and ineligible costs are separated and
identifiable. The RECIPIENT shall submit a copy of the final
negotiated agreement to the DEPARTMENT for eligibility determination.
Page 8 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
Task i - Pro~ect A~nistration/Management
a. The RECIPIENT shall administer the project. Activities shall
include, but not be limited to, maintenance of'project records,
submittal of fiscal forms and payment vouchers, certification of
statutory compliance with procurement and interlocal agreement
requirements, and attainment of all required permits, licenses,
easements, or property rights necessary for the project.
b. The RECIPIENT shall manage the project. Activities shall include,
but not be limited to, conducting, coordinating, and scheduling of
all project activities, quality control, 'and the preparation and
submittal of required performance items.
The RECIPIENT Shall ensure that every effort will be made to
maintain effective co~umunication with the RECIPIENT's designees,
the DEPARTMENT, all affected local, state, or federal
jurisdictions, Or any interested~individuals or groups. .The
RECIPIENT shall carry, out this project in accordance with
completion dates outlined in this agreement.
c. The.RECIPIENT shall submit all invoice requests and
progress/quarterly reports to the Financial Manager of the
DEPARTMENT at the following address:
Financial Management Section
Water Quality Program
Washington Department of Ecology
P.O. Box 47600
Olympia, WA 98504-7600
Ail other correspondence and document submittals should be
addressed to the PrOject Manager located at:
Water Quality Program
Southwest Regional Office
Department of Ecology
P.O. Box 47775
Olympia, WA. 98'504-7775
d. One projeCt completion report should be provided at a minimum.
Page 9 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
Required Performance:
1. Effective administration and management of this loan project.
2. Submittal of all required performance items, progress
reports, financial vouchers, and maintenance of all project
records.
3. Completion of all project requirements by March 31, 1999.
Task 2 - Septic System Repair Loans
a. The RECIPIENT shall implement a local loan fund program for
repairs of on-site septic systems. Sites to be funded will be
prioritized based on actual or potential impact to surface or
ground waters. Highest priority shall be given to those sites
with identifiable water quality degradation, i.e. surfacing .into
or in direct proximity to surface water or drainage way. High
priority shall be given to sites adjacent to fresh or marine
waters .or adjacent to drainage's that drain directly to fresh or
marine waters. Moderate priority, shall be given to those sites
that may be effecting water resources, i.e. high water table but
no direct proximity to surface water or drainage way. Low
priority shall be given to sites which appear unlikely to effect
water quality.
Eligibility criteria under each priority are used to rank
applicants where necessary. Criteria that are used are: type of
system (i.e. cesspool, seepage pit), distance to surface water,
depth to water table, age of system, soil type.
b. Low income and senior citizens shall receive a high eligibility
rating. Lower interest rates may also be offered to these groups.
c. This program will be promoted through workshops to the general
public, community'groups, homeowners associations, realtors, and
other professionals. The RECIPIENT will provide information on
the program to owners of suspect or failing systems.
d. Loans will be secured by a promissory note and a deed of trust
recorded with the County Auditors Office, which establishes'a lie~
on the property.
e. Septic system repair work will be inspect'ed and approved bY the
RECIPIENT. Homeowners of repaired systems will be provided an
Operations and Maintenance Manual. Monitoring of the system by
the Public Utility District or other party authorized by the
RECIPIENT is required. Systems that are permitted as Table VI
repairs as defined by WAC 246-272 shall be maintained and
mohitored through a third-party contract as specified by the State
Guidelines for Treatment Standards 1 and 2.
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
f. Up to one-third of the local loan fund may be used by small
commercial enterprises for on-site wastewater treatment
corrections. These enterprises may include public lodging
(including motels, hotels, and bed and breakfast establishments),
rentals (apartments, duplexes, or houses), small restaurants,
stores, and taverns, etc. The average daily flows for any one
interest cannot exceed 3500 gallons per day. No more than half of
this one-third amount may be loaned to any single individual or
business, up to a maximum of $50,000.
PART XI. SPECIAL TERMS AND CONDITIONS
Minority and Women's Business Participation. The RECIPIENT
agrees to utilize to the maximum extent possible, minority-owned
and women-owned businesses in purchases and contracts initiated
after the effective date of this Agreement.
In the absence of more stringent goals established by the
RECIPIENT's jurisdiction, the RECIPIENT agrees to utilize the
DEPARTMENT'S goals for minority- and womenhowned business
participation in all bid packages, request .for proposals, and
purchase orders. These goals are expressed as a percentage of the
total dollars available for the purchase or contract and are as
follows:
Minority-owned business participation - 10 percent
Women-owned business participation - 6 percent
The RECIPIENT and ALL prospective bidders or persons submitting
qualifications shall take the following steps in any procurement
initiated after the effective date of this Agreement:
e
Include qualified minority and women's businesses on
solicitation lists.
Ensure that qualified minority ahd women's businesses are
solicited whenever they are potential sources of services or
supplies.
Divide the total requirements, when economically feasible,
into smaller tasks or quantities, to permit maximum
participation by qualified minority and women's businesses.
Establish delivery schedules, where work requirements permit,
which will encourage participation of qualified minority and
women's businesses.
Use the services and assistance of the State Office of
Minority and Women's Business Enterprises (OWMBE) and the
· VOL
Page 11 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
0ffice'of Minority Business Enterprises of the U.S.
Department of Commerce, as appropriate.
By signing this Agreement, the RECIPIENT certifies that the above
steps were, or will be followed. Any contractor engaged by the
RECIPIENT under this agreement shall be reqUired to follow the
above five affirmative steps in the award of any subcontract(s).
The RECIPIENT shall report t~ the DEPARTMENT at the time of
submitting each invoice, on forms provided by the'DEPARTMENT,
payments made to qualified firms. The report, will address:
Name and state 0MWBE certification number of any qualified
firm receiving funds under the voucher, including any sub-
and/or sub-subcontractors.
The total dollar amount paid to qualified firms under this
invoice.
Prevailing Wage. The RECIPIENT shall require all contractors and
subcontractors on the Project to pay wages at rates not less than
those prevailing for the same type of work on similar construction
in the immediate locality, in compliance with the Davis-Bacon Act
(40 U.S.C., sec. 276a through 276a-7) or state requirements,
· whichever is more stringent.
Accounting Standards. The RECIPIENT shall maintain accurate
records and accounts for the project (Project Records) in
accordance with generally accepted government accounting standards
including those contained in the "Standards for Audit of
Governmental Organizations, Programs, Activities, and Functions"
promulgated by the U.S. General Accounting Office.
These Project Records shall be separate and distinct from the
RECIPIENT's other records and accounts (General Accounts).
Eligible costs shall be audited annually by an independent,
certified accountant and/or state auditor, which may be part of
the annual audit of the General Accounts of the RECIPIENT (if the
annual audit includes an auditing of this Project). A copy of
such annual audit(s), including all written comments and
recommendations of such accountant, shall be furnished to the
DEPARTMENT within 150 days of the close of the fiscal years being
so audited.
Public Awareness. Ail public awareness notices,' signs,'or
announcements, related to a project financed in Whole or in part
by funds related to this Agreement should inform the public of
the DEPARTMENT's involvements and the involvement of the federal
government.
Page 12 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
Procurement, Debarment and Suspension. The RECIPIENT is
responsible for procuring professional, personal, and other
services using sound business judgement and good administrative
procedures. This includes issuance of invitation of bids,
requests for proposals, selection of contractors, award of sub-
agreements and other related procurement matters. The RECIPIENT
shall follow the procuremeht standards of Title 40 of the Code of
Federal Regulations Part 32.
Fe
Small Business in Rural Areas (SBRAs). If a contract is awarded
by the RECIPIENT under this Agreement, the RECIPIENT is also
required to utili.ze the following affirmative steps: '
Place SBRAs on solicitation lists;
Make sure the SBRAs are solicited whenever there are
potential sources;
Divide total requirements, when economically feasible, into
small tasks or quantities to permit maximum participation by
SBRAs;
Establish delivery schedules, where requirements of work will
permit, which could encourage participation by SBRAs;
Use the services of the Small Business Administration and the
Minority Business Development Agency of the U.S. Department
of Commerce, as appropriate; and
Require the contractor to comply with the affirmative steps
outlined above.
The negotiated "Fair Share'percentage" for the SBRAs is 5 percent.
There is no formal reporting requirement-for SBRAs at this time;
it is recommended that the RECIPIENT keep records of SBRA
participation.
PART XII. INCORPORATION OF DOCUMENTS
This Agreement incorporates the following documents by attachment and
reference:
A. Attachments:
ATTACHMENT 1:
ATTACHMENT 2:
ATTACHMENT 3:
ATTACHMENT 4:
DEFINITIONS FOR SRF LOAN AGREEMENTS;
GENERAL TERMS AND CONDITIONS PERTAINING TO GRANT
AND LOAN AGREEMENTS;
ESTIMATED LOAN REPAYMENT SCHEDULE;
AUTHORIZING RESOLUTION
Page 13 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010'
B. References:
DEPARTMENT'S SRF Program Guidelines, revised May 1995;
Facilities Plan Approval Letter (where applicable) and any
amendments there-to Plans and Specifications Approval Letter
(where applicable) and any amendments thereto;
Ce
Amendments: Ail formal amendments to this agreement, must be
properly executed, and signed by the DEPARTMENT.
PART XIII.
ALL WRITINGS CONTAINED HEREIN
This Agreement, including the incorporated documents, contains the
'entire understanding between the parties, and there are no other
understandings or representations other than those set forth or
incorporated by reference herein. No subsequent substantive
amendment(s) to this Agreement shall be of any force or effect unless
made on the DEPARTMENT's contract amendment form and that form is
Signed by authorized representatives of the RECIPIENT and the
DEPARTMENT, and made part of'this Agreement; EXCEPT:
In relation to change of the DEPARTMENT'S Project Manager or
FinanCial Manager or the RECIPIENT'S Contact as set forth on page.
1 of this document, either party may make such change by sending a
letter to the other, to that effect, without the signature of the
other party;
In relation to insubstantial modifications and changes which will
be requested by the RECIPIENT in writing and approved in writing
by the Project Manager.
Page 14 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
PART XIV. OPINION OF LEGAL COUNSEL
By signing this page, the RECIPIENT's legal counsel is providing an
opinion that affirmatively establishes that:
The RECIPIENT is a duly organized and legally existing [municipal
corporation/political subdivision] Under the laws of the state of
Washington;
The .RECIPIENT has'the power and authority to execute and deliver,
and perform its obligations under, the Loan and this Agreement;
This Agreement has been duly authorized and executed, acknowledged
where necessary, by RECIPIENT authorized representatives and, to
the best knowledge of such Counsel, all other necessary actions
have been taken, so that this Agreement is valid, binding, and
enforceable upon the RECIPIENT in accordance with its terms,
except as such enforcement is affected by bankruptcy, insolvency,
moratorium, or other laws affecting creditor's rights and
principles of equity if equitable remedies are sought; and to such
Counsel's knowledge, this Agreement does not violate any other
agreement, statute,' court order, or law to which the RECIPIENT is
a party or by which it is bound.
The Loan constitutes a valid general obligation of the RECIPIENT
payable 'from annual ad valorem taxes to be levied within the
constitutional and statutory tax limitations provided by law
without a vote of the electors of the RECIPIENT on all of the
taz~FD~roperty within the boundaries of the RECIPIENT.
Recipient's Legal Counsel ~ Date
Page 15 of 16
Jefferson County
Septic System Repair Program II Project
Loan No. L9700010
In Witness Whereof, the parties execute this Agreement.
STATE OF WASHINGTON
DEPARTMENT OF ECOLOGY
MICHAEL ~. L~,EWELYN
PROGRAM NLANAGE R
WATER QUALITY PROGRAM
JEFFERSON COUNTY
~tl'%C~D~ (~ X DATE
CHAIR, BOARD OF~ ~/'O/~/e/~
COMMISSIONERS ~1~'~1
APPROVED AS TO FORM ONLY
ASSISTANT ATTORNEY GENERAL
(3/30/96)
VOL 22
Page 16 of 16
Jefferson County
Septic System Repair Program II Project
SRF Loan Number L9700010
ATTACHMENT I
DEFINITIONS FOR LOAN AGREEMENTS
Unless the context clearly requires otherwise, these terms shall have
the respective meanings set forth for all purposes of this Agreement.
"Annual Debt Service" for any calendar year means for any applicable
series of bonds or applicable loans, including the Loan, all the
i~terest plus all principal due on such bonds or loans in such year.
"Average Annual Debt Service" means at the time of calculation, the
sum of the Annual Debt Service for the remaining years to the last
scheduled maturity of the Loan divided by the number of those years.
"Coverage Requirement" means annual Net Revenue~ together with ULID
Assessments, at least equal to Annual Debt Service on all Senior Lien
Obligations plus Annual Debt Service on the Loan.
"Defease" - means the setting aside in escrow or other special fund
or account of sufficient investments and money dedicated to pay all
principal and interest.of all or a portion of an obligation as they
come due.
"Department" means the state of Washington, Department of Ecology, or
any successor agency or department.
."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.
"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 ULID Assessments, government grants, RECIPIENT taxes, principal
proceeds of bonds and other obliqations and earnings or proceeds from
any investments in a trust, defeasance, or escrow fund created to
defease or refund Utility obligations or in an Obligation redemption
fund or account other than the Loan Fund until commingled with other
earnings and revenues of the Utility or held in a special account for
the purpose of paying a rebate to the United States Government under
the Internal Revenue Code.
"Initiation of Operation" is the actual date the facility begins to
operate for its intended purpose. This date may occur prior to final
inspection and will be determined by the DEPA/RTMENT after consultation
with the RECIPIENT. This date may be the same or earlier than the date
-of project completion. For those projects where the Initiation of
Operation date is not applicable, use the date of project completion.
Page 1 of 3
Jefferson County
Septic System Repair Program H Project
SRF Loan Number L9700010
"Loan" means the State Revolving Fund (SRF) or Centennial Clean
Water Fund (CCWF) Loan made pursuant to this Agreement.
"Loan Fund" means that special fund of the RECIPIENT created by
ordinance or resolution for the payment of the principal of and
interest on this Loan.
"Maintenance and Operation Expense" means all reasonable expenses
incurred by the RECIPIENT in causing the Utility to be operated and
maintained in good repair,, working order, and condition including
payments to other parties for the transmission, treatment or disposal
of sewage but shall not include any 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.
"Project" means the project described in this Agreement.
"Project Completion Date" is the date incorporated into the loan
agreement that identifies the date that the Scope of Work will.be fully
Completed and the date the project will end. The project completion
date may be changed to an earlier or later date by a formal amendment
that is properly executed and signed by the DEPARTMENT.
"Principal and Interest Account" means the account of that name herein
created in the Loan Fund with respect to a Revenue Secured Debt to be
first used to pay the principal of and interest on the Loan.
"Reserve Account" means for 'a Revenue Secured Debt the account created
in the Loan Fund to secure the payment of the principal of and interest
on the Loan and any obligations issued on a parity therewith..
"Revenue Secured Debt" means an obligation of the RECIPIENT that is
secured by the revenue of the Utility and that is not a general
obligation of the RECIPIENT. For the purposes of this Agreement, the
term Revenue Secured Debt shall apply only if the Project is a sanitary
sewer or storm sewer utility and only if the RECIPIENT has created a
storm sewer or surface water utility or. storm water utility. If the
Project provides for a mixture Of various activities which include
sanitary or storm sewer activities, the Loan shall not be a Revenue
Secured Debt.
"Senior Lien Obligations" means all revenue bonds and other
obligations of the RECIPIENT outstanding on the date of execution of
~his Agreement (or subsequently issued on a parity therewith, or to
refund such bonds or obligations) and bonds or issued to other than a
governmental entity after the date of executi'on of this Agreement
having a claim or lien on the Gross Revenue of the Utility, subject
only to Maintenance and Operation Expense.
Page 2 of 3
Jefferson County
Septic System Repair Program II Project
SRF Loan Number L9700010
"Sewer System" or "water pollution control facilities," means any
facilities or systems for the control, collection, storage, treatment,
disposal, or recycling of wastewater; .including but not limited to
sanitary sewage, stormwater, residential, commercial, industrial, and
agricultural wastes.
"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.
"I/LID 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 shall include installments thereof
and any interest or penalties which may be due thereon.
"Utility" means either the water system, the sewer system (which may
include a storm-sewer or surface water system), or the combined water
and sewer system of the RECIPIENT the Gross Revenues of which are
pledged to pay .and secure the Loan.
Page 3 of 3
ATTACHMENT 2
GENERAL TERMS AND CONDITIONS .
Pertaining to Grant and Loan Agreements of
the Department of Ecology
A. RECIPIENT PERFORMANCE
All activities for which grant/loan funds are to be used shall be accomplished by the RECIPIENT and
· RECIPIENT's employees. The RECIPIENT shall not assign or subcontract performance to others unless
specifically authorized in writing by the DEPARTMENT.
B. SUBGRANTEE/CONTRACTOR COMPLIANCE
The RECIPIENT must ensure that all subgrantees and contractors comply with the terms and conditions
of this agreement.
C. ~ PARTY BENEFICIARY
The 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.
D. CONTRACTING FOR SERVICF~ (BIDDING)
Contracts for construction, purchase of equipment and professional architectural and engineering services
shall be awarded through a competitive process, if required by State law. RECIPIENT shall retain copies
of all bids received and contracts awarded, for inspection and use by the DEPARTMENT.
E. ASSIGNMENTS
No right or claim of the RECIPIENT arising under this agreement shall be transferred or assigned by the
F. COMPLIANCE WITIt ALL LAWS
1. The RECIPIENT shall comply fully with all applicable Federal, State and local 1.aws, orders,
regulations and permits.
Prior to commencement of any construction, the RECIPIENT shall secure the necessary approvals
and permits required by authorities having jurisdiction over the project, provide assurance to the
DEPARTMENT that all approvals and permits have been secured, and make copies available to the
DEPARTMENT upon request.
2. Discrimination. The DEPARTMENT and the RECIPIENT agree to be bound by all Federal and
State laws, regulations, and policies against discrimination. The RECIPIENT further agrees to
affirmatively support the program of the Office of Minority and Women's Business Enterprises to
the maximum extent possible. The RECIPIENT shall report to the DEPARTMENT the percent of
grant/loan funds available to women or minority owned businesses.
3. Wages And Job Safety. The 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.
4. Industrial Insurance. The RECIPIENT certifies full compliance with all applicable state industrial
imurance requirements. If the RECIPIENT fails to comply with such laws, the DEPARTMENT
shall have the fight to immediately terminate this agreement for cause as provided in Section K. 1,
herein.
G. KICKBACKS
The RECIPIENT is prohibited from inducing by any means any person employed or otherwise involved
in this project to give up any part of the compensation to which he/she is otherwise entitled or, receive any
fee, commission or gift in remm for award of a subcontract hereunder.
H. AUDITS AND INSPECTIONS
1. The RECIPIENT shall maintain complete program and financial records relating to thi~ agreement.
Such records shall clearly indicate total receipts and expenditures by fund source and task or object.
D 12,3'7
the grant/loan agreement and performed after the effective date and prior to the expiration date of
thi.q agreement, unless those dates are specifically modified in writing as provided herein.
4. Final Request(s) for Payment. The RECIPIENT must submit final requests for compensation within
forty-five(45) days after the expiration date of this agreement and within fifteen (15) days after the
end of a fiscal biennium. Failure to comply may result in delayed reimbursement.
5. Performance Guarantee. The DEPARTMENT may withhold an amount not to exceed ten percent
(10%) of each reimbursement payment as security for the RECIPIENT's performance and a financial
bond. Monies withheld by the DEPARTMENT may be paid to the RECIPIENT when the project(s)
described herein, or a portion thereof, have been completed'fi, in the DEPARTMENT's sole
discretion, such payment is reasonable and approved according to this agreement and, as appropriate,
upon completion of an audit as specified under section J.6., herein.
6. Unauthorized Expenditures. All payments to the RECIPIENT shall be subject to final audit by the
DEPARTMENT and any unauthorized expenditure(s) charged to this grant/loan shall be refunded
to the DEPARTMENT by the RECIPIENT.
7. Mileage and Per Diem. If mileage and per diem are paid to the employees of the RECIPIENT or
other public entities, it shall not exceed the amount allowed under state law.
8. Overhead Costs. No reimbursement for overhead costs shall be allowed unless provided for in the
Scope of Work hereunder.
TERMINATION
1. For Cause. The obligation of the DEPARTMENT to the RECIPIENT is contingent upon
satisfactory performance by the RECIPIENT of all of its obligations under this agreement. In the
event the RECIPIENT unjustifiably 'fails, in the opinion of the DEPARTMENT, to perform any
obligation requh', ed of it by this agreement, the DEPARTMENT may refuse to pay any further funds
thereunder and/or terminate this agreement by giving written notice of termination.
A written notice of termination shall be given at least five working days prior to the effective date
of termination. In that event, all finished or unfinished documents, data studies, surveys, drawings,
maps, models, photographs, and reports or other materials prepared by the RECIPIENT under this
agreement, at the option of the DEPARTMENT, shall become Department property and the
RECIPIENT shall be entitled to receive just and equitable compensation for any satisfactory work
completed on such documents and other materials.
Despite the above, the RECIPIENT shail not be relieved of any liability to the DEPARTMENT for
damages sustained by the DEPARTMENT and/or the State of Washington because of any breach
of agreement by the RECIPIENT. The DEPARTMENT may withhold payments for the purpose
of setoff until such time as the exact amount of damages due the DEPARTMENT from the
RECIPIENT is determined.
2. Insufficient Funds. The obligation of the DEPARTMENT to make payments is contingent on the
availability of state and federal funds through legislative appropriation and state allotment. When
this agreement crosses over state fiscal years the obligation of the DEPARTMENT is contingent
upon the appropriation of funds during the next fiscal year. The failure to appropriate or allot such
funds shall be good cause to terminate this agreement as provided in paragraph K.1 above.
When thl.q agreement crosses the RECIPIENT's fiscal year, the obligation of the RECIPIENT to
continue or complete the project described herein shall be contingent upon appropriation of funds
by the RECIPIENT's governing body; Provided, however, that nothing contained herein shall
preclude the DEPARTMENT from demanding repayment of ALL funds paid to the RECIPIENT in
accordance with Section O herein.
3. Failure to Commence Work. In the event the RECIPIENT fails to commence work on the project
funded herein within four months after the effective date of this agreement, or by any date mutually
agreed upon in writing for commencement of work, the DEPARTMENT reserVes the right to
terminate this agreement.
GOVERNING LAW.
This agreement shall be governed by the laws of the State of Washington.
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.
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 terms incorporated herein by
reference including the 'Administrative Requirements for Ecology Grants and Loans"; and (e) the General
Terms and Conditions.
SS-OIO Rev. 4/96
ATTACHMENT 3
)8/13/96
.rEFFERSON COUNTY
Loan Amount: $ 100,000..00 Loan Date: 03231-1999
Term of Loan: 27 Annual Interest Rate: 4.200 %
Amortization Method: Normal, 365 D/Y Interest Compounded: Semi-Annual
Principal
PMT Due Date Payment Amount Interest
4,992.84 4,244.10 748.74
4,992.84 2,084.28 2,908.56
9,985.68 6,328.38~ 3,657.30
4,992.84 2,023.20 2,969.64
4,992.84 1,960.83 3,032.01
9,985.68 3,984.03 6,001.65
4,992.84 1,897.16
4,992.84 1,832.15
9,985.68 3,729.31
4,992.84 1,765.78
3,095.68
3,160.69
6,256.37
3,227.06
4,992.84 1,698.01 3,294.83
9,985.68 3,463.79 6,521.89
4,992.84 1,628.82 3,364.02
4,992.84 1,'558.17 3,434.67
9,985.68 3,186.99 6,798.69
4,992.84 1,486.05 3,506.79
4',992.84 1,412.40 3,580.44
9,985.68 2,898.45 7,087.23
4,992.84 1,337.21 3,655.63
4,992.84 1,260.45 3,732.39
9,985.68 2,597.66 7,388.02
4,992.84 1,182.07 3,810.77
4,992.84 1,102.04 3,890.80
9,985.68 2,284.11 7,701.57
4,992.84 1,020.33 3,972.51
4,992.84 936.91 4,055.93
I 03-31-00
2 09130-00
2000 totals
3 03-31-01
4 09-30-01
2001 totals
5' 03-31-02
6 09-30-02
2002 totals
7 03-31-03
8 09-30-03
2003 totals
9 03-31-04
10 09-30-04
2004 totals
11 03-31-05
12 09-30-05
2005 totals
1.3 03-31-06
14 09-30-06
200.6 totals.
15 03-31-07
16 09-30-07
2007 totals
17 03-31-08
18 09-30-08
Balance
99,251.26
96,342.70
93,373.06
90,341.05
87,245.37
84,.084.68
80,857.62
77,562.79
74,198.77
70,764.10
67,257.31
63,676.87
60,021'.24
56,288.85
s2,4v.8.o8
48,587.28
44,614.77
40,558.84
PHIS IS AN
Page I
D8/13/96
PMT Due Date Payment Amount Interest Principal Balance
2008 totals 9,985.68 1,957.24 8,028.44
19 03-31-09 4,992.84 851.74 .4,141.10 36,417.74
20 09~30-09 4,992.84 764.77 4,228.07 32,189.67
2009 totals 9,985.68 1,616.51 8,369.17
21 03-31-10 4,992.84 675.98 4,316.86 27,872.81
22 09=30-10 4,992.84 585.33 4,407.51 23,465.30
2010 totals 9,985.68 1,261.31 8,724.3.7
23 03-31-11 4,992.84 492.77 4,500.07 18,965.23
24 09-30-11 4,992.84 398.27 4,594.57 14,370.66
2011 totals 9,985.68 891.04 9,094.64'
25 03-31-12 4,992.84 301.78 4,691.06 9,679.60
26.09-30-12 4,992.84 203.27 4,789.57 ' 4,890.'03
2012 totals 9,985.68 505.05 9,480.63
27 03-31-13 4,992.72 102'.69 4,890.03 0.00
2013 totals 4,992.72 102.69 4,890.03
Grand totals $ 134,806.56 $ 34,806.56 $ 100,000.00
?HIS IS AN
ESTIMATED. REPAYMENT SCHEDULE
Page 2