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2007.12.11 CC Committee Meetings Agenda PacketAGENDA              City Council Committee Meetings Council Chambers, Public Safety Complex 250 5th Avenue North, Edmonds December 11, 2007 6:00 p.m.   The City Council Committee meetings are work sessions for the City Council and staff only. The meetings are open to the public but are not public hearings. The Committees will meet in the following rooms:     Community/Development Services (Council Chambers), Finance (Jury Room), Public Safety (Police Training Room)    1.Community/Development Services Committee   A. AM-1303 (20 Min) Briefing on the December 3, 2007 storm related damage.   2.Finance Committee   A. AM-1302 (10 Min) Edmonds Public Facilities District Contingent Loan Agreement.   B. AM-1301 (5 Min) Edmonds School District Broadband Agreement.   C. AM-1299 (15 Min) Professional Services Agreements (PSA) between City of Edmonds and Mike Doubleday, Patton Boggs, LLC (Addendum #2), and Salter Joyce Zyker.   3.Public Safety Committee   A. AM-1298 (20 Min) Cat Licensing   B. AM-1296 (10 Min) Purchase of a replacement SWAT bus.   C. AM-1304 (15 Min) Parking spaces for disabled persons.     Packet Page 1 of 61 AM-1303 1.A. Briefing on the December 3, 2007 Storm Related Damage City Council Committee Meetings Date:12/11/2007 Submitted By:Kim Karas, Public Works Submitted For:Noel Miller Time:20 Minutes Department:Public Works Type:Information Committee:Community/Development Services Information Subject Title Briefing on the December 3, 2007 storm related damage. Recommendation from Mayor and Staff Continue to proceed with emergency response and recovery efforts. Previous Council Action On December 4, 2007, the City Council passed a Resolution declaring an emergency. Narrative Public Works and Development Services staff will provide an update on the response and recovery efforts resulting from this severe storm. Fiscal Impact Attachments No file(s) attached. Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 12/06/2007 01:10 PM APRV 2 Mayor Gary Haakenson 12/06/2007 03:22 PM APRV 3 Final Approval Sandy Chase 12/06/2007 03:42 PM APRV Form Started By: Kim Karas  Started On: 12/06/2007 10:22 AM Final Approval Date: 12/06/2007 Packet Page 2 of 61 AM-1302 2.A. Edmonds Center Contingent Loan Agreement City Council Committee Meetings Date:12/11/2007 Submitted By:Dan Clements, Administrative Services Time:10 Minutes Department:Administrative Services Type:Action Committee:Finance Information Subject Title Edmonds Public Facilities District Contingent Loan Agreement. Recommendation from Mayor and Staff Approve Contingent Loan Agreement Previous Council Action This item was discussed at the November 14 Finance Committee meeting. Narrative The City guaranteed the original construction loan for the Edmonds Center for the Arts. This agreement would enable the Center to roll the interim construction financing into a longer term fixed rate loan, with a rate lower than the present adjustable rate. This agreement simply transfers the City guarantee from the bridge loan to the permanent loan, and deleted Bank of America as a party to the agreement. Fiscal Impact Attachments Link: Contingent Loan Agreement Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 12/06/2007 09:52 AM APRV 2 Mayor Gary Haakenson 12/06/2007 09:54 AM APRV 3 Final Approval Sandy Chase 12/06/2007 10:06 AM APRV Form Started By: Dan Clements  Started On: 12/06/2007 07:55 AM Final Approval Date: 12/06/2007 Packet Page 3 of 61 FP Draft 11/30/2007 50858661.3 CONTINGENT LOAN AGREEMENT by and between THE CITY OF EDMONDS and THE EDMONDS PUBLIC FACILITIES DISTRICT relating to the EDMONDS PUBLIC FACILITIES DISTRICT $_________ GENERAL AND REVENUE OBLIGATION BONDS, SERIES 2008 Dated as of January __, 2008 This document prepared by: Foster Pepper PLLC 1111 Third Avenue, Suite 3400 Seattle, Washington 98101 (206) 447-4400 Packet Page 4 of 61 FP Draft 11/30/2007 50858661.3 TABLE OF CONTENTS ARTICLE 1. Recitals..................................................................................................................................................1 ARTICLE 2. Definitions.............................................................................................................................................2 ARTICLE 3. Loans to the District; Repayment Terms...........................................................................................3 Section 3.1 Loans to the District .........................................................................................................................3 Section 3.2 Procedures Under Guarantee; Time and Amount of Loans..............................................................3 Section 3.3 Covenants Regarding Debt Limit and Additional Debt....................................................................4 Section 3.4 Repayment Terms.............................................................................................................................5 Section 3.5 Nature of District’s Obligation.........................................................................................................6 Section 3.6 Nature of City’s Obligation..............................................................................................................6 Section 3.7 City Acknowledgments ....................................................................................................................6 ARTICLE 4. Rights of City Upon Making Loans....................................................................................................6 Section 4.1 Rights of the City..............................................................................................................................6 ARTICLE 5. Additional Obligations and Covenants...............................................................................................7 Section 5.1 Agreement to Issue Bonds................................................................................................................7 Section 5.2 Third Party Beneficiary....................................................................................................................7 Section 5.3 Representations and Warranties of the District. ...............................................................................7 Section 5.4 Additional Covenants and of the District. ........................................................................................7 ARTICLE 6. Remedies Upon Default .......................................................................................................................9 Section 6.1 Remedies of City on Default............................................................................................................9 Section 6.2 Remedies of District on Default.......................................................................................................9 Section 6.3 No Remedy Exclusive......................................................................................................................9 Section 6.4 No Implied Waiver...........................................................................................................................9 Section 6.5 Agreement to Pay Attorneys’ Fees and Expenses ............................................................................9 Section 6.6 Dispute Resolution ...........................................................................................................................9 ARTICLE 7. Hold Harmless....................................................................................................................................10 ARTICLE 8. Miscellaneous......................................................................................................................................10 Section 8.1 Continuing Disclosure Undertaking of the City .............................................................................10 Section 8.2 Governing Law; Venue ..................................................................................................................11 Section 8.3 Notices............................................................................................................................................11 Section 8.4 Binding Effect ................................................................................................................................11 Section 8.5 Severability.....................................................................................................................................12 Section 8.6 Amendments...................................................................................................................................12 Section 8.7 Additional Debt..............................................................................................................................12 Section 8.8 Waiver of Breach............................................................................................................................12 Section 8.9 No Rights Created in Third Parties.................................................................................................12 Section 8.10 Time of Essence .............................................................................................................................12 Section 8.11 Effective Date of and Termination of Agreement ..........................................................................13 Packet Page 5 of 61 FP Draft 11/30/2007 50858661.3 –1– CONTINGENT LOAN AGREEMENT RELATING TO THE EDMONDS PUBLIC FACILITIES DISTRICT’S $_________ GENERAL AND REVENUE OBLIGATION BONDS, SERIES 2008 This CONTINGENT LOAN AGREEMENT (this “Agreement”) is dated as of January [__], 2008, by and between THE CITY OF EDMONDS (the “City”), a code city organized under the laws of the State of Washington, the EDMONDS PUBLIC FACILITIES DISTRICT (the “District”), a municipal corporation established by the City of Edmonds and duly organized and existing under and by virtue of the laws of the state of Washington (together, the “Parties”). The City and the District enter into this Agreement solely for the purpose of providing credit support for the District’s General and Revenue Obligation Bonds, 2008, issued in the principal amount of $__________ pursuant to Resolution No. ___ of the District adopted on [December __, 2007] (the “Bond Resolution”). The Parties agree as follows: ARTICLE 1. Recitals The following facts and circumstances form the background of this Agreement: 1. The District is a duly organized and legally existing municipal corporation of the State of Washington. The District and the City are authorized by applicable provisions of state law, including chapters 35.57 and 35.59 RCW, and RCW 82.14.390, to acquire, construct, own, remodel, maintain, equip, repair and operate a regional center (including multipurpose community centers and special events centers) and related parking facilities. 2. The City and the District have the authority to enter into interlocal agreements under chapters 35.57, 35.59 and 67.28 RCW for joint and cooperative action, including provisions to finance joint or cooperative undertakings, multipurpose community centers, regional centers and tourism-related facilities, and to provide for services to be provided by one government to another. 3. The District’s Board of Directors (the “Board”) has previously found and determined that the residents of the District and the region will benefit from the District’s acquisition, construction, operation and maintenance of a performing arts center, known as the Edmonds Center for the Arts (the “Regional Center”), which will provide for meetings, conferences, community events, trade shows, and artistic, musical, theatrical or other cultural exhibitions, presentations or performances. 4. As authorized by RCW 35.57.040(1)(d) and RCW 82.14.390, the District has since 2001 imposed and collected a 0.033% sales and use tax to assist in financing the design, Packet Page 6 of 61 FP Draft 11/30/2007 50858661.3 –2– development, acquisition, construction, operation and management of the Regional Center, which taxing authority will expire when the bonds issued for the construction of the Regional Center and related parking facilities are retired, but not later than 2026, which is twenty-five years after the tax was first collected. 5. The District has entered into an Interlocal Agreement (the “Interlocal Agreement”) with the City, the Snohomish County Public Facilities District (the “County PFD”) and Snohomish County (the “County”), dated November 4, 2002, regarding the joint development and operation of the Regional Center and pursuant to which the City, the County PFD and the County have agreed to make payments to the District to support such joint development and operation. 6. The City began construction of the Special Events Center in [July, 2007], financed with available funds of the City [and State Grant?]; 7. Pursuant to RCW 35.57.030, the Board desires to issue not to exceed $________ of its General and Revenue Obligation Bonds, Series 2008 (the “Bonds”), payable from Sales Tax Revenue and General Revenue (as described herein) for the purpose of: (a) refunding outstanding amounts drawn under the District’s not to exceed $7,000,000 General and Revenue Obligation Line of Credit Note, 2005 issued to provide funds needed to complete construction of the Regional Center and other related costs and to provide interim financing upon completion (the “Prior Note”); (b) ________________[Are there any additional improvements to be financed?]; and (c) paying certain fees and the costs of issuance and sale of the Bonds (collectively, the “Project”). 8. In connection with the Prior Note, the City, the District and Bank of America, N.A. entered into a Guarantee Agreement, dated as of October 26, 2005 (the “Prior Guarantee”), which will be released upon the refunding of the Prior Note. 9. The District has requested that the City provide, for the benefit of the holders of the Bonds, credit support to the District to permit the District to obtain financing for the Project at the lowest interest rates available. 10. The City is willing to provide credit support for the District’s Bonds and has authorized the execution of a contingent loan agreement pursuant to its Ordinance No. [___], adopted on [December __, 2007] and effective as of [December __, 2007] (the “City Authorizing Ordinance”). ARTICLE 2. Definitions Unless the context clearly requires otherwise, capitalized terms used in this Agreement have the meanings given such terms in the Bond Resolution. Packet Page 7 of 61 FP Draft 11/30/2007 50858661.3 –3– ARTICLE 3. Loans to the District; Repayment Terms Section 3.1 Loans to the District. The City shall lend money to the District at the times and in the amounts set forth in Section 3.2. The District shall borrow the amounts described above from the City pursuant to this Agreement for the purpose of paying debt service on the Bonds. The City irrevocably agrees to disburse all loans made hereunder directly to the District, and the District irrevocably agrees to immediately apply all such amounts received by it for the purpose of meeting its obligations under the Bonds. The aggregate principal amount of outstanding loans to be made by the City pursuant to this Agreement shall not exceed the outstanding principal amount of the Bonds, plus all interest accrued on the Bonds. Section 3.2 Procedures Under Guarantee; Time and Amount of Loans. [TO DISCUSS: Does this timing work for City? Would the City be able to come up with sufficient funds for a semiannual debt service payment on just 25 days notice? Should there be money set aside in a debt service reserve that is called upon before the City is called upon?] (1) Notice of Insufficiency. On the 1st day of the month preceding each Debt Service Payment Date (or if the 1st is not a Business Day, then on the next Business Day), the District shall review the amount on deposit in the Debt Service Fund to determine whether there will be sufficient money available in the Debt Service Fund to make the required payment due on the upcoming Debt Service Payment Date. If, upon such review, it appears that the money available in the Debt Service Fund will be insufficient to make that payment, the District shall provide the City a notice in substantially the form attached hereto as Exhibit A (a “Notice of Insufficiency”) within five days after the date on which the review was required. Failure of the District to give a Notice of Insufficiency to the City shall not relieve the City of its obligation to make loans upon demand by the District under subsection (4) of this section. (2) Budgeting for Loans. Upon receipt of a Notice of Insufficiency from the District, the City shall, to the extent necessary, include in its budget the amounts required to make the loans described in subsection (4) of this section. If the need to budget for such loans was not reasonably foreseeable at the time the City prepared its biennial budget, the City shall budget for such loans under Title 35A RCW and the Edmonds Municipal Code in sufficient time to provide for the loans described in subsection (4). (3) Cancellation Notices. If, at any time before 10 a.m. (Pacific time) on the [24th] day of the month preceding an upcoming Debt Service Payment Date for which the District has given a Notice of Insufficiency (or, if the 24th is not a Business Day, the Business Day preceding the 24th), the District determines that there will be sufficient money available in the Debt Service Fund to make the required payment due on the upcoming Debt Service Payment Date, the District shall provide, prior to 5 p.m. on the same day, a notice to the City in substantially the form attached hereto as Exhibit B (a “Cancellation Notice”). Delivery of a Cancellation Notice by the District to the City shall not relieve the City of its obligations to make loans upon demand by the District under subsection (4) of this section. Packet Page 8 of 61 FP Draft 11/30/2007 50858661.3 –4– (4) Loans. For as long as any Bonds remain outstanding, the City shall, no later than 10 a.m. on the business day preceding that Debt Service Payment Date, lend to the District an amount that, when added to the money available in the Debt Service Fund, is sufficient to make all make all payments [of principal of and interest on the Bonds] due on the upcoming Debt Service Payment Date, subject to the limitation set forth in Section 3.1. The City shall, upon demand by the District in accordance with Section 3.1, cause the amount of each loan hereunder to be transferred to the District in United States Dollars and immediately available funds. (5) Method of Notice. Notices of Insufficiency and Cancellation Notices shall be sent by the District to the City Administrative Services Director by hand delivery or facsimile (which facsimile shall be promptly confirmed by telephone communication to the City Administrative Services Director). The original of each such notice also shall be mailed to the City pursuant to Section 8.3. Any failure by the District to send such notices shall not nullify the City’s obligation to make loans to the District hereunder, but may result in a delay by the City in transferring loan amounts to the District. (6) Assumed Payment Under Interlocal Agreement. Solely for the purpose of determining whether sufficient money will be available in the Debt Service Fund on any Debt Service Payment Date, the parties may assume that the City will make payments to the District at the times, and in the amounts, required by the Interlocal Agreement, except to the extent expressly modified by this Agreement. Section 3.3 Covenants Regarding Debt Limit and Additional Debt. (1) The District does not intend to submit this Agreement or any indebtedness created hereunder to qualified electors of the District for approval. Under RCW 35.57.030 and existing laws, the District may incur non-voted indebtedness in an aggregate amount equal to one-half of one percent of the value of the taxable property within the District. In light of the foregoing, and to comply with RCW 67.28.130, the District agrees not to incur additional indebtedness after the Bonds are issued unless prior written approval is obtained in accordance with Section 8.7 and the provisions in the Bond Resolution related to Additional Bonds. (2) In the event the District lacks sufficient non-voted debt capacity to incur indebtedness resulting from a loan from the City in the amount determined under Section 3.2, the District shall incur indebtedness for an amount equal to the District’s remaining non-voted debt capacity, if any, and any loan amount greater than the District’s then-remaining non-voted debt capacity shall be deemed an equity payment by the City to the District in exchange for an interest in the Regional Center, which need not be repaid pursuant to Section 3.4. Within 60 days after any such equity payment by the City, the District shall deliver to the City a quitclaim deed conveying to the City a tenancy-in-common interest in the Regional Center. Such interest shall be a percentage ownership interest in the Regional Center, the numerator of which shall be the sum such equity payment and the costs of transferring title and recording such quitclaim deed, and the denominator of which shall be the aggregate original principal amounts of: (a) the Bonds, (b) all bonds issued by the City to finance the Regional Center, and (c) any other bonds issued by the District to finance the Regional Center (excluding the Prior Note and any bonds, Packet Page 9 of 61 FP Draft 11/30/2007 50858661.3 –5– or any portion thereof, issued to refinance bonds issued by the City or the District to finance the Regional Center). (3) The City will reconvey to the District, by means of a quitclaim deed, all of the City’s interest in the Regional Center acquired pursuant to subsection (2) of this Section if the District pays to the City an amount equal to the sum of: (a) all payments made by the City to the District in exchange for an interest being reconveyed to the District; plus (b) all costs incurred by the City relating to the transfer of title and recording of deed(s); plus (c) interest on the sum of the amounts described by clauses (a) and (b), calculated from the date(s) of the City’s payment thereof; plus (d) the costs of transferring title to the District and recording such quitclaim deed. The rate of interest to be used for purposes of this calculation shall be the rate described in Section 3.4(2). (4) The transfers of interest authorized by this Section are intended to reflect the joint and cooperative nature of the financing of the Regional Center pursuant to chapters 35.57, 35.59 and 67.28 RCW. Section 3.4 Repayment Terms. (1) Repayment Terms . The principal amount of each loan to the District hereunder, together with interest thereon calculated as set forth in subsection (2) of this section, shall be repaid by the District from available Sales Tax Revenue and General Revenue during each calendar year after (a) the Debt Service Fund has been fully funded for such calendar year and (b) reasonable provision has been made for the operating expenses of the Regional Center. Such payments will be applied first to costs owed to the City, second, to interest owed to the City on account of outstanding loans made under this Agreement and third to the principal of all outstanding loans made under this Agreement in the order in which such loans were made. (2) Interest Rate. Each loan made under the terms of this Agreement will bear interest from the date of the loan until the date such loan is repaid. Interest on the loans will be calculated on the basis of a 365/366-day year, for the actual number of days elapsed. The rate of interest borne by each loan hereunder shall be a variable rate equal to the monthly average rate of return on the State of Washington Local Government Investment Pool (or its successor), as determined as of the last day of each month in which a loan is outstanding, and shall change monthly as of the first day of each month in which a loan is outstanding. The City may in its discretion charge a lower rate of interest. Absent manifest error, all calculations of the City Administrative Services Director shall be binding upon the District. (3) Maturity. Unless paid earlier pursuant to subsection (1) of this section, all loans hereunder shall mature on [final maturity date of bonds?]. Packet Page 10 of 61 FP Draft 11/30/2007 50858661.3 –6– Section 3.5 Nature of District’s Obligation. The District’s obligation to make the loan repayments to the City 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, abatement or otherwise. The full faith, credit and resources of the District are hereby pledged for the payment of all amounts owed to the City under this Agreement. The District’s obligations under this Agreement shall continue in effect and shall survive the satisfaction of the District’s obligations under the Bonds and the Bond Resolution until such time as principal and interest due to the City pursuant to any loan or loans made hereunder have been repaid, together with any costs owed to the City pursuant to Section 6.5 and Article 7. To further its ability to make such payments to the City, the District hereby irrevocably covenants and agrees to continue imposing the Sales Tax pursuant to RCW 82.14.390 for so long as the Bonds remains outstanding or any District obligation to pay any amount to the City under this Agreement remains outstanding. Section 3.6 Nature of City’s Obligation. The City’s obligation to advance funds to the District in the amounts, at the times, under the conditions and in the manner described herein shall be absolute and unconditional, and shall not be subject to diminution by setoff, counterclaim, abatement or otherwise. The full faith, credit and resources of the City are pledged irrevocably to make the loans, in the amounts, at the times, in the manner and subject to the limitations described herein, regardless of whether the Regional Center is operating at any particular time. The obligations of the City hereunder shall terminate upon payment in full of the principal of and interest on the Bonds. For each fiscal year during the term of this Agreement, the City agrees that it will include in its budget and appropriate an amount that the City reasonably expects to be necessary to fulfill its obligation to make loans to the District under the terms of this Agreement. Failure to so budget shall not be a default under this Agreement if the City fulfills its obligation to make loans to the District as required under this Article III. Section 3.7 City Acknowledgments. The City acknowledges and agrees that the District will pledge to the payment of the Bonds: (a) the loan proceeds it receives under this Agreement; (b) the Sales Tax Revenues, junior only to the lien granted in connection with the City’s Limited Tax General and Revenue Obligation Bonds, 2002; (c) the District’s General Revenue; and (d) proceeds of fundraising efforts for the Project as described in [Section __] of the Bond Resolution. ARTICLE 4. Rights of City Upon Making Loans Section 4.1 Rights of the City . If the City has made any loans to the District under this Agreement and such loans have not been repaid in full (whether or not the loan is in default), the City may take any one or more of the following steps: (1) The City may have access to and inspect, examine and make copies of the books and records and any and all accounts and data of the District; and (2) With the consent of the parties to the Interlocal Agreement, the City may, but shall not be required to, appoint a manager (which may be the City) or a receiver for the Regional Packet Page 11 of 61 FP Draft 11/30/2007 50858661.3 –7– Center. Any manager or receiver appointed pursuant to this subsection (2) shall have, in addition to all the rights and powers customarily given to and exercised by receivers, all rights of the District to manage, operate and maintain the Regional Center and shall have all other rights of the District to exercise its rights and powers in the same manner and to the same extent that the District could do, including without limitation the execution, enforcement and termination of contracts providing for management or maintenance of the Regional Center, all on such terms as are deemed best by the City to protect its interests under this Agreement. The City or the manager or receiver appointed by the City shall be entitled to receive a reasonable fee for managing the Regional Center. The City shall not enter into an agreement with a manager unless it receives written confirmation from nationally recognized bond counsel that the agreement will not adversely affect the tax-exempt nature of interest on the Bonds for federal income tax purposes. ARTICLE 5. Additional Obligations and Covenants Section 5.1 Agreement to Issue Bonds. The District shall issue the Bonds in accordance with the Bond Resolution and this Agreement in the principal amount of [$___________], which amount does not to exceed the amount necessary to finance or refinance the Regional Center in accordance with the [Project Budget]. Section 5.2 Third Party Beneficiary. Each covenant and commitment of the District in the Bond Resolution is incorporated herein for the further benefit of the City, and the City shall be a third party beneficiary of the contract of the District set forth in the Bond Resolution. Section 5.3 Representations and Warranties of the District. (1) Commencement of Construction Prior to January 1, 2004. The District represents that it commenced construction (within the meaning of RCW 82.14.390) of the Regional Center before January 1, 2004. (2) Regarding the Regional Center. The District has, and will have, as long as any Bonds or Additional Bonds remain outstanding, good right and lawful authority to proceed with the development of the Regional Center and to provide for the maintenance, operation, improvement and construction of the Regional Center. The District shall not release or modify the obligations of any user of the Regional Center that would in any way limit any such user’s obligation to make payment of such rents, rates, fees or other charges imposed by the District for such use of the Regional Center. The foregoing shall not prohibit the District from establishing reduced rates and charges, or eliminating rates and charges, for the use of the Regional Center for certain classes of users of the Regional Center if and as appropriate, as long as charges are applied on a fair and nondiscriminatory basis. Section 5.4 Additional Covenants and of the District. (1) Operation of Regional Center. The District agrees that it shall cause the Regional Center to be operated and maintained in a business-like fashion (including the maintenance of proper and customary property and liability insurance with respect to the Regional Center) as both a “tourism-related facility” (within the meaning of RCW 67.28.080(7)) and a “regional Packet Page 12 of 61 FP Draft 11/30/2007 50858661.3 –8– center” (within the meaning of RCW 35.57.020) and shall cause all books and records to be maintained with respect thereto. (2) Reporting. The District shall provide the City (at the notice address set forth in Section ___) with a quarterly report summarizing actual financial activity and financial expectations for the following four quarters. (3) No Liens. Neither the City nor the District shall grant or permit any lien (other than consensual liens such as contractors’ liens) against the Regional Center or its interest therein which, if unpaid, might become a lien or charge upon the Sales Tax Revenue, or any part thereof, prior to or superior to the lien of the Bonds and any Additional Bonds, or which might impair the security of the Bonds and any Additional Bonds. (4) Enforcement of Obligations. The District shall take all reasonable measures permitted by law to enforce payment to it of all Sales Tax Revenue and any payments due to it under the Interlocal Agreement, and shall at all times, to the extent permitted by law, defend, preserve and protect the rights, benefits and privileges of the District and of the Registered Owners under or with respect to the Bond Resolution. (5) Ownership, Sale, Transfer or Disposition of the Regional Center. The District shall be the owner of the Regional Center except to the extent the City acquires any interest therein pursuant to Section 3.3 of this Agreement. Except pursuant to Section 3.3, the District will not sell, transfer or otherwise dispose of any facilities or property (real or personal) comprising a part of the Regional Center, except upon approval by resolution of the Board and only consistent with one or more of the following: (a) The District in its discretion may sell, transfer or dispose (each, as used in this subparagraph, a “transfer”) of facilities or property that is not material to the operation of the Regional Center, or which has become unserviceable, inadequate, obsolete or unfit to be used in the operation of the Regional Center or is no longer necessary, material or useful to the operation of the Regional Center; or (b) The District in its discretion may transfer facilities or property if the District receives from the transferee in a bona fide, arm’s length transaction an amount equal to the fair market value of the facilities or property so transferred. As used herein, “fair market value” means the most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the willing buyer and willing seller each acting prudently and knowledgeably. The proceeds of any transfer under this subparagraph (ii) shall be used (1) to promptly redeem, or irrevocably set aside for the redemption of, the District’s outstanding Bonds or Additional Bonds, and/or (2) to provide for all or part of the cost of capital improvements and/or additions to or expansions of the Regional Center. Nothing in the foregoing is intended to restrict the transfer of the facilities or property to the City pursuant to the Interlocal Agreement or to permit transfers not permitted under the Interlocal Agreement. Packet Page 13 of 61 FP Draft 11/30/2007 50858661.3 –9– ARTICLE 6. Remedies Upon Default Section 6.1 Remedies of City on Default. Upon the occurrence of a default by the District in its obligations hereunder, the City may proceed to protect and enforce its rights in equity or at law, either in mandamus or for the specific performance of any covenant or agreement contained herein, or for the enforcement of any other appropriate legal or equitable remedy, as the City may deem most effectual to protect and enforce any of its rights or interests hereunder; provided that the City may not enforce repayment of the loans until repayment in full of the principal of and interest on the Bonds. Section 6.2 Remedies of District on Default. Upon the occurrence of a default by the City in its obligations to make loans to the District hereunder, the District may proceed to protect and enforce its rights in equity or at law, either in mandamus or for the specific performance of any covenant or agreement contained herein, or for the enforcement of any other appropriate legal or equitable remedy, as the District may deem most effectual to protect and enforce any of its rights or interests hereunder. Section 6.3 No Remedy Exclusive. No remedy conferred upon or reserved to either party by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute, and either party hereto shall be free to pursue, at the same time, each and every remedy, at law or in equity, which it may have under this Agreement, or otherwise. Section 6.4 No Implied Waiver. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. For the exercise of any remedy, it shall not be necessary to give any notice, other than such notice as may be expressly required herein. Section 6.5 Agreement to Pay Attorneys’ Fees and Expenses. If a default arises under any of the provisions of this Agreement and either party hereto should employ attorneys or incur other expenses for the collection of amounts due under this Agreement or the enforcement of performance or observance of any obligation or agreement on the part of the other party contained in this Agreement, on demand therefor, the nonprevailing party shall pay or reimburse the prevailing party for the reasonable fees of such attorneys and such other expenses so incurred. Section 6.6 Dispute Resolution. The parties may mediate any dispute over the interpretation of any terms or conditions under this Agreement. Mediation will be made available upon request of either party. The costs associated with any such mediation shall be shared equally by the parties. Packet Page 14 of 61 FP Draft 11/30/2007 50858661.3 –10– ARTICLE 7. Hold Harmless As between the City and the District, the District shall assume the risk of, be liable for, and pay all damage, loss, cost and expense of any party, including its employees, arising out of the performance of this Agreement, except that caused by negligence and/or willful misconduct solely of the City and its employees acting within the scope of their employment. The District shall hold harmless the City and its officers, elected officials, agents, and employees against all claims, losses, suits, actions, costs, counsel fees, litigation costs, expenses, damages, judgments or decrees by reason of damage to any property or business and/or any death, injury or disability to or of any person or party, including any employee, arising out of or suffered, directly or indirectly, by reason of or in connection with the performance of this Agreement or any act, error or omission of the District or the District’s employees, agents, or subcontractors, whether by negligence or otherwise, but only after repayment in full of the principal of and interest on the Bonds. The District’s obligation shall include, but not be limited to, investigating, adjusting and defending all claims against the City alleging loss from action, error or omission or breach of any common law, statutory or other delegated duty by the District, the District’s employees, agents or subcontractors. ARTICLE 8. Miscellaneous Section 8.1 Continuing Disclosure Undertaking of the City. To meet the conditions of paragraph (d)(2) of United States Securities and Exchange Commission (“SEC”) Rule 15c2 12 (the “Rule”), as applicable to a participating underwriter for the Bonds, the City undertakes for the benefit of holders of the Bonds to provide to each NRMSIR and the SID (as those terms are defined in the Rule), the following annual financial information: (i) annual financial statements for the City prepared (except as noted in the financial statements) in accordance with generally accepted accounting principles applicable to Washington governmental units such as the City, as such principles may be changed from time to time, which statements need not be audited, except, however, that if and when audited financial statements are otherwise prepared and available to the City they will be provided; (ii) statements of authorized, issued and outstanding general obligation debt of the City; (iii) statements of assessed valuation of property within the City subject to ad valorem taxation for the fiscal year; and (iv) the ad valorem regular property tax levy rate and regular property tax levy rate limit for the fiscal year. Such annual financial information shall be provided not later than the last day of the ninth month after the end of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal year may be changed as required or permitted by State law, commencing with the City’s fiscal year ending December 31, 2007. It may be provided in a single or multiple documents, and may be incorporated by reference to other documents that have been filed with each NRMSIR and the SID, or, if the document incorporated by reference is a “final official statement” with respect to obligations of the City, that has been filed with the MSRB. Packet Page 15 of 61 FP Draft 11/30/2007 50858661.3 –11– The City’s obligations under this undertaking shall terminate upon the legal defeasance of all of the Bonds. In addition, the City’s obligations under this undertaking shall terminate if those provisions of the Rule which require the City to comply with this undertaking become legally inapplicable in respect of the Bonds for any reason, as confirmed by an opinion of nationally recognized bond counsel or other counsel familiar with federal securities laws delivered to the City and the District, and the District provides timely notice of such termination to each NRMSIR or the MSRB and the SID. To the extent authorized by the SEC, the City may satisfy this undertaking by transmitting the required filings using http://www.disclosureusa.org (or such other centralized dissemination agent as may be approved by the SEC). Section 8.2 Governing Law; Venue. This Agreement is governed by and shall be construed in accordance with the substantive laws of the State of Washington and shall be liberally construed so as to carry out the purposes hereof. Except as otherwise required by applicable law, any action under this Agreement shall be brought in the Superior Court of the State of Washington in and for Snohomish County. Section 8.3 Notices. Except as otherwise provided herein, all notices, consents or other communications required hereunder shall be in writing and shall be sufficiently given if addressed and hand delivered or mailed by certified or registered mail, postage prepaid and return receipt requested, as follows: To the City: City of Edmonds 121 Fifth Avenue North Edmonds, WA 98020 Attention: Finance/Administrative Services Director Fax: (425) 771-0265 Telephone: (425) 771-0240 To the District: Edmonds Public Facilities District 121 Fifth Avenue North Edmonds, WA 98020 Attention: PFD Treasurer Fax: (425) 771-0265 Telephone: (425) 771-0240 The City or the District may designate any further or different addresses to which subsequent notices, certificates, requests or other communications shall be sent by giving notice of such change to the other party. Notices shall be deemed served upon deposit of such notices in the United States mail in the manner provided above. Section 8.4 Binding Effect. This Agreement shall inure to the benefit of the City, the District and the holders of the Bonds and shall be binding upon the City and the District and their successors. This Agreement may not be assigned. Packet Page 16 of 61 FP Draft 11/30/2007 50858661.3 –12– Section 8.5 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 8.6 Amendments. This Agreement may be amended, changed, modified or altered by an instrument in writing duly executed by the City and the District (or the successors in title of each) if, in the opinion of bond counsel, such amendment will not adversely affect the security for the Bonds or tax exemption of interest on the Bonds. This Agreement may not be terminated until the Bonds are no longer outstanding, unless the City has assumed all liability for payment of the principal of and interest on the Bonds when due and has pledged its full faith and credit to such payment. Section 8.7 Additional Debt. So long as the Bonds remain outstanding and the Contingent Loan Agreement remains in effect, the District shall not incur any additional indebtedness, other than in the ordinary course of business, without the prior written consent of the City. Such consent shall not be unreasonably withheld if the following conditions are met at the time: (a) The District is not in default under this Agreement or under the Bond Resolution; (b) The proceeds of the additional debt will be used to fund capital expenditures relating to the Regional Center; (c) The additional indebtedness will not cause the District to exceed its non-voted debt capacity under RCW 35.57.030(1); and (d) No ownership interest in the Regional Center has been transferred to the City under Section 3.3(2) that has not been transferred back to the District under Section 3.3(3). Unless specified in a separate agreement or an amendment hereto, the City shall be under no obligation to make loans hereunder to pay debt service on any additional debt. Section 8.8 Waiver of Breach. No waiver of any breach of any covenant or agreement contained herein shall operate as a waiver of any subsequent breach of the same covenant or agreement or as a waiver of any breach of any other covenant or agreement, and in case of a breach by either party of any covenant, agreement or undertaking, the nondefaulting party may nevertheless accept from the other any payment or payments or performance hereunder without in any way waiving its right to exercise any of its rights and remedies provided for herein or otherwise with respect to any such default or defaults that were in existence at the time such payment or payments or performance were accepted by it. Section 8.9 No Rights Created in Third Parties. The terms of this Agreement are not intended to establish or to create any rights in any persons or entities other than the City, the District, the respective successors and assigns of each. Section 8.10 Time of Essence. Time and all terms and conditions shall be of the essence of this Agreement. Packet Page 17 of 61 FP Draft 11/30/2007 50858661.3 –13– Section 8.11 Effective Date of and Termination of Agreement. This Agreement shall take effect as of the date first written above. Except as provided in Section 3.5, this Agreement shall terminate upon payment in full of all principal of and interest on the Bonds. Section 3.3 and Article 7 shall survive the termination of this Agreement. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LEND MONEY, EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. IN WITNESS WHEREOF, the City and the District have caused this Agreement to be executed in their respective names by their duly authorized officers, and have caused this Agreement to be dated as of the date set forth on the first page hereof. CITY OF EDMONDS, WASHINGTON ___________________________________ Mayor Attest: ___________________________________ City Clerk EDMONDS PUBLIC FACILITIES DISTRICT __________________________________ President, Board of Directors Attest: __________________________________ Secretary, Board of Directors Packet Page 18 of 61 FP Draft 11/30/2007 50560950.07 STATE OF WASHINGTON COUNTY OF SNOHOMISH ss. I certify that I know or have satisfactory evidence that ____________ and _____________ are the persons who appeared before me, and said persons acknowledged that said persons signed this instrument, on oath stated that said persons were authorized to execute the instrument and acknowledged it as the Mayor and Clerk, respectively, of the CITY OF EDMONDS, a municipal corporation of the State of Washington, to be the free and voluntary act of such municipal corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of December, 2008. (Signature of Notary) (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at My appointment expires STATE OF WASHINGTON COUNTY OF SNOHOMISH ss. I certify that I know or have satisfactory evidence that ____________ and _____________ are the persons who appeared before me, and said persons acknowledged that said persons signed this instrument, on oath stated that said persons were authorized to execute the instrument and acknowledged it as the President and Secretary, respectively, of Board of Directors of the EDMONDS PUBLIC FACILITIES DISTRICT, a municipal corporation of the State of Washington, to be the free and voluntary act of such municipal corporation for the uses and purposes mentioned in the instrument. Dated this ______ day of December, 2008. (Signature of Notary) (Legibly Print or Stamp Name of Notary) Notary public in and for the State of Washington, residing at My appointment expires Packet Page 19 of 61 FP Draft 11/30/2007 50560950.07 Exhibit A Form Notice of Insufficiency City of Edmonds 121 Fifth Avenue North Edmonds, WA 98020 Attention: Finance/Administrative Services Director VIA FACSIMILE (with telephone confirmation) Re: NOTICE OF INSUFFICIENCY Edmonds Public Facilities District General and Revenue Obligation Bonds, 2008 The undersigned, a duly authorized officer of the Edmonds Public Facilities District (the “District”), hereby certifies to the City of Edmonds, Washington (the “City”), with reference to the Contingent Loan Agreement (the “Agreement”) dated as of January [__], 2008, by and between the City and the District, and the above-captioned bonds (the “Bonds”), that: 1. Next Debt Service Payment Date: __________, 20__ 2. Debt service due: Principal $________________ Interest $________________ Total $________________ 3. There will be insufficient money available in the Debt Service Fund on the date described in clause (1) to make the debt service payments described in clause (2): Amount expected to be on deposit in the District’s Debt Service Fund: $________________ Plus the payment the City is required to make on __________, 20__, pursuant to the Interlocal Agreement: $________________ Total available for debt service $________________ 4. Amount of the loan requested is calculated as follows: Debt service total listed in clause (2): $________________ Less the amount available for debt service, as listed in clause (3): $________________ Loan Amount $________________ Pursuant to Section 3.2 of the Agreement, the City is requested to make a loan to the District no later than ___________, 20__, in the amount listed in clause (4). The City shall cause such amount to be transferred to the District’s Debt Service Fund, in United States Dollars and immediately available funds. Any capitalized term used herein and not defined shall have the meaning assigned to such term in the Agreement or, if not therein defined, as defined in the Bond Resolution. The individual signing below hereby represents that he or she is an officer of the undersigned and is duly authorized to execute and deliver this document. Dated: __________, 20__. EDMONDS PUBLIC FACILITIES DISTRICT [Executive Director or designee] Packet Page 20 of 61 50560950.07 Exhibit B Form Cancellation Notice City of Edmonds 121 Fifth Avenue North Edmonds, WA 98020 Attention: Finance/Administrative Services Director VIA FACSIMILE (with telephone confirmation) Re: CANCELLATION NOTICE Edmonds Public Facilities District General and Revenue Obligation Bonds, 2008 The undersigned, a duly authorized officer of the Edmonds Public Facilities District (the “District”), hereby certifies to the City of Edmonds, Washington (the “City”), with reference to the Contingent Loan Agreement (the “Agreement”) dated January __, 2008, by and between the City and the District, and the above-captioned bonds (the “Bonds”), that: 1. Next Debt Service Payment Date: __________, 20__ 2. Debt service due: Principal $________________ Interest $________________ Total $________________ 3. There will be sufficient money available in the Debt Service Fund on the date described in clause (1) to make the debt service payments described in clause (2): Amount expected to be on deposit in the District’s Debt Service Fund: $________________ Plus the payment the City is required to make on __________, 20__, pursuant to the Interlocal Agreement: $________________ Total available for debt service $________________ 4. The District’s Notice of Insufficiency and loan request delivered on __________, 20__ is hereby cancelled. Pursuant to Section 3.2 of the Agreement, the City is requested NOT to make a loan to the District with respect to the debt service payments described in clause (2). Any capitalized term used herein and not defined shall have the meaning assigned to such term in the Agreement or, if not therein defined, as defined in the Bond Resolution. The individual signing below hereby represents that he or she is an officer of the undersigned and is duly authorized to execute and deliver this document. Dated: __________, 20__. EDMONDS PUBLIC FACILITIES DISTRICT [Executive Director or designee] Packet Page 21 of 61 AM-1301 2.B. Edmonds School District Broadband Agreement City Council Committee Meetings Date:12/11/2007 Submitted By:Dan Clements, Administrative Services Time:5 Minutes Department:Administrative Services Type:Action Committee:Finance Information Subject Title Edmonds School District Broadband Agreement. Recommendation from Mayor and Staff Approve Agreement Previous Council Action Discussed at November 14 Finance Committee Narrative This is the revised form of the interlocal agreement where the City provides broadband services to the Edmonds School District. Fiscal Impact Attachments Link: School District Contract Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 12/06/2007 09:52 AM APRV 2 Mayor Gary Haakenson 12/06/2007 09:54 AM APRV 3 Final Approval Sandy Chase 12/06/2007 10:06 AM APRV Form Started By: Dan Clements  Started On: 12/06/2007 07:46 AM Final Approval Date: 12/06/2007 Packet Page 22 of 61 L:\PRODUCTIONDB\CCOUNCIL\0006_1301_EDMONDS SCHOOL DISTRICT FIBER AGREEMENT FINAL.DOC City of Edmonds Fiber Optic Service Agreement with Edmonds School District This Fiber Optic Service Agreement is entered into this ______ day of _____________, 2007, between the City of Edmonds and Edmonds School District, providing for fiber optic services to Edmonds School District by the City of Edmonds. The City of Edmonds (“City”) and Edmonds School District (“District”) agree as follows: 1. Findings 1.1 The City is building a high speed, broad band fiber optic network and internet connection in the City in order to provide advanced telecommunication and data management services to its various departments and to enhance city services to the public, including but not limited to water and sewer services, fire and police services, and library and park services. 1.2 The District is poised to expand its outreach to students, staff, and the community in order to advance instructional and communication goals. However, these efforts cannot be expanded adequately and efficiently without access to a second sophisticated broadband fiber network and internet connection which provides redundant connectivity. 1.3 The installation of an advanced fiber network allows the City to enjoy substantial additional capacity in the system and the opportunity to supply broad band fiber optic and internet connection services to other government institutions, such as the District, on a basis that will expand the internal communication abilities and the educational outreach of those institutions, while at the same time lowering the overall cost of the fiber optic network to the City and enhancing the robustness of the City’s fiber optic system. The additional capacity will also enable the City to expand its own usage in future years to serve City agencies and to serve the citizens of Edmonds. Packet Page 23 of 61 Edmonds School District Broadband Agreement 2. Term 2.1 The initial term of this Agreement is five years from its effective date. 2.2 The effective date of this Agreement shall be the date on which the fiber optic connection is completed to the District, and the District has tested the connection by sending and receiving internet traffic at the demarcation patch panel. 2.3 At the end of the initial five-year term, either party may terminate the Agreement on ninety days’ advance written notice to the other party. 2.4 If not terminated at the end of the initial five-year term, the Agreement will extend automatically on a year to year basis. 2.5 Either party may then terminate the Agreement at the end of each successive one- year extension on ninety days’ advance written notice to the other party. 3. City Obligations The City will provide the following services (either with its own employees or through its contractors) to the District: 3.1 Install a high speed broad band fiber cable and connection to a demarcation patch panel attached to the District at the following locations: 3.1.1 ___Edmonds-Woodway High School – 7600 212th Street SW Edmonds, WA 98026________________________________________________ 3.2 Supply metering facilities capable of measuring the District’s use of the City fiber network on an industry standard basis, as described below in section 6.4.1. 3.3 Operate and maintain the City’s high speed broad band internet connection and fiber system, including the connections to demarcation patch panels at the District for a minimum of five years from the effective date of the Agreement. 3.4 Use its best efforts to provide a 99 percent standard of reliability of the network internet connection, excluding (1) one two-hour scheduled maintenance window per month between weekend hours (Friday at 9 PM – Monday at 3 AM). 3.5 Bill the District on a monthly basis on the basis of rate principles established in section 6.4. Page 2 of 11 Packet Page 24 of 61 Edmonds School District Broadband Agreement 4. District Obligations In return for the services provided by the City under section 3, the District will do the following: 4.1 Provide suitable locations for installation of high speed broad band fiber cable and connections to demarcation patch panels attached to the District at the at the locations described in section 3.1. 4.2 Provide the City with access to District property to install the fiber connections and fiber optic cable, together with underground conduits should underground connections be required. 4.3 Provide the City with a procedure to rapidly obtain 24 hour a day/seven days per week access to the demarcation patch panels attached to the District at the locations described in section 3.1, and any other locations on District property over which the City fiber system is connected. 4.4 Assume full responsibility for the District’s communication systems on the District’s side of the demarcation patch panels. 4.5 Pay the City for costs and fees, within 30 days of receipt of a properly completed invoice. 5. Technical Specifications 5.1 Technical specifications of the City’s broad band fiber system and internet connection existing at the time this Agreement is entered into are described in Exhibit A, which is made a part of the Agreement. 5.2 The City reserves the option to change those specifications at any time during the term of the Agreement. 5.3 Should the specifications change, the City will attempt to inform the District of those changes at least sixty days prior to the change. However, because there may be multiple changes to the system over the term of the Agreement, the City does not guarantee that all changes in technical specifications will be provided to the District. 5.4 The District has the option at any time to request and obtain the most up to date technical specifications in the possession of the City. 6. Pricing The City will charge the District for high speed, broad band fiber optic network and internet connection under the following categories: (1) installation costs amortized over Page 3 of 11 Packet Page 25 of 61 Edmonds School District Broadband Agreement five years, (2) maintenance expenses, inclusive of any federal, state, city, or other local taxes, (3) port charges, and (4) bandwidth usage charges. 6.1 Installation The installation cost of connecting to the District will be charged to the District at cost and amortized over the initial five year term of the agreement. 6.1.1 The estimated cost of installing the fiber optic connection and demarcation patch panel at the locations specified in section 3.1 is provided in Exhibit B 6.1.2 This amount is only an estimate. The actual installation costs, which may be different, will be the amount used to calculate the amortized installation charges to the District. 6.1.3 The actual installation costs will be financed over 5 years using an interest rate of 1.5% over the State’s investment pool rate in effect at the time the agreement is adopted. This fixed monthly cost, will be charged for the first sixty months under the agreement. 6.1.4 After the first sixty months of billing under the agreement, the monthly charges for installation will cease, unless there are additional intervening installations or other capital costs agreed upon in writing by both parties. 6.2 Maintenance A charge for ongoing maintenance will be separately identified on the City’s monthly billing to the District. The components of that modest maintenance charge are: 6.2.1 Maintenance of fiber and conduits based in part on the length of connection between the connection points to the District and the City’s fiber system. 6.2.2 Maintenance of the hardware and software associated with the demarcation patch panels at the connections to the District and the metering mechanisms necessary to operate the connections to the District. 6.2.3 Proportionately allocated federal, state, and local taxes. 6.3 Port Charge A fixed monthly port charge will be billed to the District for each connection point identified above in section 3.1 and for any other connection to the District that may later be added. 6.3.1 The port charges identified in the illustrative Exhibit B will remain fixed for the initial five-year term of the Agreement. They may then be changed by the City on an annual basis provided the City gives the District 180 days’ advance written notice of changes in the monthly port charges. Page 4 of 11 Packet Page 26 of 61 Edmonds School District Broadband Agreement 6.4 Bandwidth A fourth component of charges to the District will be based on bandwidth usage. 6.4.1 The City will utilize an industry standard “95th percentile” method of computing network utilization as follows: 6.4.1.1 The City will track the District’s usage in 5 minute intervals over the course of a calendar month. 6.4.1.2 The City will then sort the intervals based on usage (highest to lowest) and discard the top 5 percent of intervals for that month. 6.4.1.3 The City will then compute usage based on the highest 5 minute interval remaining after discarding the top 5 percent. 6.4.2 The District will have a choice of a minimum bandwidth price schedule or no minimum bandwidth price schedule. 6.4.2.1 The rates per mb of bandwidth usage and port charges will be lower if a minimum monthly bandwidth charge is established, regardless of the actual usage. 6.4.2.2 Minimum monthly bandwidth guarantees are available at the 10, 15, 20, 30 and 50 mb/month levels. 6.4.2.3 If a minimum monthly bandwidth is guaranteed, any higher usage by the District will be charged at the lower $/mb rate associated with that minimum guarantee level. 6.4.2.4 Should the District choose not to guarantee a minimum mb/month bandwidth, the bandwidth and port charges will be higher. Bandwidth will be based only on the actual usage during the month measured by the “95th percentile” method of computing network utilization described above in section 6.4.1. 6.4.3 The District must select a bandwidth option or a specific level of minimum bandwidth at the inception of the Agreement. 6.4.3.1 The bandwidth option initially selected by the District is outlined in Schedule B. 6.4.3.2 As the Bandwidth requirements of the District increase, the District will be able to increase their minimum bandwidth commitment in order to take advantage of the lower unit costs. The District must request modification of the billing structure in writing, and it will take effect the billing period that follows the date the notice is received plus 30 days. Page 5 of 11 Packet Page 27 of 61 Edmonds School District Broadband Agreement The District may only reduce its minimum bandwidth commitment on the annual anniversary date of the Agreement or subsequent renewals. 6.4.4 The Pricing Matrix identified in Exhibit B will remain fixed for the initial five-year term of the Agreement. After the initial five-year term, the rates may be changed by the City on an annual basis provided the City gives the District 180 days’ advance written notice of changes in bandwidth charges. 7. Notices 7.1 Notices required under this Agreement must be in writing. 7.1.1 Written notices may be delivered by hand-delivery, U.S. Mail, FedEx (or other express delivery service), fax, or e-mail. 7.1.2 Notices will be effective, however, only on the date received. 7.2 Notices to the City should be sent to the following Name Dan Clements Position Administrative Services Director Street Address 121 Fifth Avenue North, Edmonds, WA 98020 Phone Number 425.771.0239 e-mail address clements@ci.edmonds.wa.us 7.3 Notices to the District should be sent to the following Name Cynthia Nelson Position Technology Director Street Address 20420 68th Ave. W, Lynnwood, WA 98036 Phone Number 425-431-7337 e-mail address nelson@edmonds.wednet.edu 7.4 The designated recipients for written notices may be changed at any time during the Agreement, so long as the change is delivered to the other party in writing. 8. Successors and Assigns 8.1 This Agreement may be assigned by either party to a successor or assign, provided the other party agrees in writing. 8.2 Approval of a request for transfer to a successor or assign must not be unreasonably withheld. 9. Limitation of Liability Page 6 of 11 Packet Page 28 of 61 Edmonds School District Broadband Agreement 9.1 The City has no responsibility for any data loss or any other consequential damages that may result from the failure, interruption or poor performance of its high speed, broad band fiber optic network and internet connection. 9.2 The only remedy available to the District as a result of the failure, interruption, or poor performance of the City’s high speed, broad band fiber optic network and internet connection is the reduction of City charges proportional to the time of the failure, interruption, or poor performance. 9.3 There are no third-party beneficiaries of this Agreement. 10. Indemnity and Insurance 10.1 The City and the District mutually indemnify each other for any losses or other claims arising from the operation and maintenance of the City’s high speed broad band internet connection and fiber system during the term of this Agreement, unless the loss or claim is caused solely by either the City or the District, in which case that party will be solely responsible. 10.2 The District shall provide a Certificate of Coverage evidencing: Commercial General, Automobile and Errors & Omissions Liability coverage written on an occurrence basis with limits no less than $1,000,000 combined single limit per occurrence for personal injury, bodily injury and property damage. 11. Integration 11.1 This Agreement represents the complete agreement between the City and the District relating to the installation, maintenance and operation of the City’s high speed broad band internet connection and fiber system. 11.2 The Agreement integrates within it all prior discussions and drafts. 11.3 No amendment to the Agreement will be valid, unless it is in the form of a written amendment that specifically amends or specifically supersedes this Agreement. 12. Severability 12.1 If any part of this Agreement is held to be invalid by a court of competent jurisdiction, those provisions will be severed from the Agreement and the obligations of the parties will continue under the remaining terms of the Agreement. 12.2 If a court of competent jurisdiction finds this Agreement to be beyond the legal authority of the City to provide internet broadband services on a service contract basis, the parties agree to enter into an interlocal agreement providing for a joint arrangement to Page 7 of 11 Packet Page 29 of 61 Edmonds School District Broadband Agreement provide each government with its own internal communication under the unified management and operation of the City in accordance with the provisions of this service agreement. 13. Force Majeure The parties to this Agreement will be not be required to carry out its terms during a period when either party is prevented from doing so by a force majeure event including natural disasters such as windstorms and earthquakes, terrorist attacks or other public safety emergencies, and injunctions or other court orders. 14 Dispute Resolution 14.1 It is not anticipated that any significant disputes will arise in the course of this Agreement. If disputes do arise, however, they will be handled as follows: 14.1.1 The first step will be for the Mayor of the City and the Superintendent of the District to meet in an attempt to resolve the dispute. 14.1.2 If the Mayor of the City and the Superintendent of the District are unable to resolve the problem within two weeks of meeting, the City Council of the City and the School Board of the District will be asked to convene a special joint meeting to address the issue. 14.1.3 If within two weeks after meeting in joint session, the City Council of the City and the School Board of the District are together unable to resolve the dispute, the Mayor of the City and the Superintendent of the District will meet to agree on a mediator for a binding resolution who will be hired to convene the parties within thirty days. The cost of the mediator will be shared equally by the City and the District. If he Mayor of the City and the Superintendent of the District cannot agree on a mediator, a mediator will be appointed by the presiding judge of Snohomish County Superior Court, with the cost of arbitration born equally. The prevailing party shall be entitled to recover reasonable attorney’s fees and costs. Page 8 of 11 Packet Page 30 of 61 Edmonds School District Broadband Agreement Agreement Approved: DATED THIS ________ DAY OF _____________________, 20____. CITY OF EDMONDS Mayor Gary Haakenson ATTEST/AUTHENTICATED: By: Sandra S. Chase, City Clerk APPROVED AS TO FORM: By: W. Scott Snyder, City Attorney Edmonds School District Signature on behalf of Edmonds School District: Printed Name: Marla S. Miller Title: Assistant Superintendent, Business and Operations Date: Page 9 of 11 Packet Page 31 of 61 Edmonds School District Broadband Agreement EXHIBIT A Interface Specifications and Requirements 1. {To be established} Page 10 of 11 Packet Page 32 of 61 Edmonds School District Broadband Agreement EXHIBIT B Pricing Matrix 1. The following Pricing Matrix reflect the agreed upon pricing to be used for the term of this agreement 2. The District has chosen a minimum bandwidth commitment of 10 Mbps for the term of the agreement. This minimum commitment can be modified UPWARD given 30 days notice pursuant to the terms of Section 6.4.3.2 of this agreement. 3. Pricing Matrix: Edmonds Fiber Network - w/minimum BW Commitment Monthly Charges Minimum Committed Usage (MB) Port Charge Capital Amortization Maint Bandwidth Total Per MB 10 $50 $158 $40 $650 $898 $65 15 $50 $158 $40 $930 $1,178 $62 20 $50 $158 $40 $1,200 $1,448 $60 30 $50 $158 $40 $1,710 $1,958 $57 50 $50 $158 $40 $2,600 $2,848 $52 4. If the District’s monthly usage based on the 95th percentile calculation method is 10mb or less the monthly charge will be $898 plus any applicable taxes. 5. If the District’s monthly usage based on the 95th percentile calculation method exceeds 10mb, the monthly charge will be calculated as follows: Example: (Assuming 11.25mb usage for the period) Component Calculation Charge Port Charge Fixed Rate Component $50.00 Amortized Capital Costs Fixed Rate Component $158.00 Maintenance Charge Fixed Rate Component $40.00 Minimum Bandwidth Charge Minimum Bandwidth Charge $650.00 Bandwidth Overage (Assuming actual bandwidth at 11.25mb for the period) 11.25 – 10.00= 1.25mb x $65 = $81.25 $81.25 Total Total Monthly Charge for 11.25 Mbps $979.25 Page 11 of 11 Packet Page 33 of 61 AM-1299 2.C. Mike Doubleday, Patton Boggs, LLC, and Salter Joyce Zyker Agreements City Council Committee Meetings Date:12/11/2007 Submitted By:Stephen Clifton, Community Services Time:15 Minutes Department:Community Services Type:Action Committee:Finance Information Subject Title Professional Services Agreements (PSA) between City of Edmonds and Mike Doubleday, Patton Boggs, LLC (Addendum #2), and Salter Joyce Zyker. Recommendation from Mayor and Staff Forward to the City Council a recommendation to approve subject professional service agreements. Previous Council Action Mike Doubleday January 3, 2007 - City Council approved a one-year Professional Services Agreement between the City of Edmonds and Mike Doubleday. Mr. Doubleday has provided services on behalf of the City the past three years. Patton Boggs January 16, 2007 - City Council approved a one-year Professional Services Agreement between the City of Edmonds and Patton Boggs LLP. Patton Boggs has provided services on behalf of the City the past two years. Salter Joyce Zyker No Council action in 2007. Salter Joyce Zyker has provided services on behalf of the City for three years. Narrative Mike Doubleday provides intergovernmental support at the State level by providing advocacy for transportation funding, projects such as Edmonds Crossing and Edmonds Center for the Arts, sales tax sourcing, and other legislation that may positively or negatively impact the City of Edmonds. He also monitors legislative activites and provides monthly and year end reports to the City. Patton Boggs provides intergovernmental support for the City of Edmonds and has worked to help secure funding for Edmonds Crossing and Edmonds Center for the Arts. Patton Boggs has also helps to monitor legislation and draft position statements related to such items as national franchising, Federal Communications Commission rulings, etc.. They also provide regular notifications on potential funding sources for a variety of issues. Packet Page 34 of 61 Salter Joyce Zyker serves as an advisor, providing legal services and assistance in the area of environmental law in order to support the City Attorney coordinating the provision of services under the direction of the City. This firm performs environmental legal work on an as needed basis. Fiscal Impact Fiscal Year: 2008 Revenue: $93,670 Expenditure: $93,670 Fiscal Impact: Expenditures Patton Boggs $ 48,000 Doubleday $ 35,670 Salter Joyce Zyker $ 10,000 (potential) $ 93,670 Total Revenue Community Services $ 80,000 Public Works $ 5,000 Non-departmental $ 8,670 $ 93,670 Total Attachments Link: Exhibit 1 - Mike Doubleday Link: Exhibit 2 - Patton Boggs Link: Exhibit 3 - Salter Joyce Zyker Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 12/06/2007 03:42 PM APRV 2 Mayor Gary Haakenson 12/06/2007 03:50 PM APRV 3 Final Approval Sandy Chase 12/06/2007 03:58 PM APRV Form Started By: Stephen Clifton  Started On: 12/03/2007 04:53 PM Final Approval Date: 12/06/2007 Packet Page 35 of 61 City of Edmonds 121 FIFTH AVENUE N. ● EDMONDS, WA 98020 ● 425-771-0239 ADMINISTRATIVE SERVICES DEPARTMENT Gary Haakenson Mayor L:\Productiondb\CCOUNCIL\0008_1299_Mike Doubleday 2008 Professional Services Agreement.doc PROFESSIONAL SERVICES AGREEMENT MIKE DOUBLEDAY GOVERNMENTAL RELATIONS SERVICES FOR THE CITY OF EDMONDS January 1, 2008 – Dec 31, 2008 THIS AGREEMENT, made and entered into between the City of Edmonds, hereinafter referred to as the “City”, and Mike Doubleday, hereinafter referred to as the “Consultant”; WHEREAS, the City desires to engage the professional services and assistance of a consultant to provide advocacy for local transportation funding, projects such as Edmonds Crossing and Shell Valley Emergency Access Road, and other legislation that may impact the City of Edmonds. NOW, THEREFORE, in consideration of mutual benefits accruing, it is agreed by and between the parties hereto as follows: 1. Scope of Work. The scope of work shall include all services and material necessary to accomplish the above-mentioned objectives in accordance with the specifics noted below. A. General Description. Provide advocacy for: local transportation funding, projects such as Edmonds Crossing and Shell Valley Emergency Access Road, and other legislation that may impact the City of Edmonds. Monitor legislative activities using the City of Edmonds 2008 Legislative Agenda as a non- exclusive scope of work, and provide regular updates to the City B. Term. This contract shall cover intergovernmental services provided from January 1, 2008 through December 31, 2008. C. Deliverables. Work with the Snohomish County Council, local State legislative delegations, appropriate State departments, legislative leadership, the Governor, and other intergovernmental representatives to: 1.) Assist with the passage of legislation favorable to the City of Edmonds; and 2.) Assist with the defeat or veto of legislation that either fiscally harms the City, or imposes unfunded program mandates. Provide monthly and year end reports to the City. 2. Payments. The Consultant shall be paid by the City for completed work for services rendered under this Agreement as provided hereinafter. Such payment shall be full Packet Page 36 of 61 Intergovernmental Contract, Page 2 compensation for work performed or services rendered and for all labor, materials, supplies, equipment and incidentals necessary to complete the work. A. Amount. Payment for work accomplished under the terms of this Agreement shall be $2,585 per month when the legislature is not in session, and $4,135 per month while the legislature is in session. Payments shall not exceed $35,670 for activities performed during a 12 month period All expenses are included in the fee: no expenses shall be reimbursed without prior written approval by the City. Should the legislature meet for part of a month, payment will be prorated based upon the percentage of days convened during the month. B. Process. All vouchers shall be submitted by the Consultant to the City for payment pursuant to the terms of this Agreement. The City shall pay the appropriate amount for each voucher to the Consultant. The Consultant may submit vouchers to the City on or before the fifth of each month for services performed during the previous month. Billings shall show the amount of time spent working each major issue so the City will be advised of the intergovernmental costs of supporting each issue. C. Record Retention. The costs records and accounts pertaining to this Agreement are to be kept available for inspection by representatives of the City for a period of three (3) years after final payment. Copies shall be made available upon request. 3. Ownership and use of documents. All research, tests, surveys, preliminary data and any and all other work product prepared or gathered by the Consultant in preparation for the services rendered by the Consultant under this Agreement shall be and are the property of Consultant and shall not be considered public records, provided, however, that: A. Final Document. All final reports, presentations and testimony prepared by the Consultant shall be come the property of the City upon their presentation to and acceptance by the City and shall at that date become public records. B. Copies. The City shall have the right, upon reasonable request, to inspect, review and, subject to the approval of the Consultant, copy any work product. C. Default. In the event that the Consultant shall default on this Agreement, or in the event that this contract shall be terminated prior to its completion as herein provided, the work product of the Consultant, along with a summary of work done to date of default or termination, shall become the property of the City and tender of the work product and summary shall be a prerequisite to final payment under this contract. The summary of work done shall be prepared at no additional cost. 4. Hold harmless agreement. In performing the work under this contract, Consultant agrees to protect, indemnify and save the City harmless from and against any and all injury or Packet Page 37 of 61 Intergovernmental Contract, Page 3 damage to the City or its property, and also from and against all claims, demands, and cause of action of every kind and character arising directly or indirectly, or in any way incident to, in connection with, or arising out of negligent work performed under the terms hereof, caused by the fault of the Consultant, its agent, employees, representatives or subcontractors. Consultant specifically promises to indemnify the City against claims or suits brought under Title 51 RCW by its employees or subcontractors and waives any immunity that the Consultant may have under that title with respect to, but only to, the City. Consultant further agrees to fully indemnify City from and against any and all costs of defending any such claim or demand to the end that the City is held harmless therefrom. This paragraph shall not apply to damages or claims resulting from the sole negligence of the City. 5. General and professional liability insurance. The Consultant shall secure and maintain in full force and effect during performance of all work pursuant to his contract a policy of business general liability insurance providing coverage of at least $1,000,000 per occurrence and shall name the City as a named insured, and shall include a provision prohibiting cancellation of said policy, except upon thirty (30) days written notice to the City. Certificates of coverage shall be delivered to the City within fifteen (15) days of execution of this Agreement. 6. Discrimination prohibited. Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, age, sex, national origin or physical handicap. 7. Consultant is an independent contractor. The parties intend that an independent contractor relationship will be created by this Agreement. No agent, employee or representative of the Consultant shall be deemed to be an agent, employee or representative of the City for any purpose. Consultant shall be solely responsible for all acts of its agents, employees, representatives and subcontractors during the performance of this contract. 8. City approval of work and relationships. Notwithstanding the Consultant’s status as an independent contractor, results of the work performed pursuant to this contract must meet the approval of the City. During pendency of this Agreement, the Consultant shall not perform work for any party with respect to any property located within the City of Edmonds or for any project subject to the administrative or quasi-judicial review of the City without written notification to the City and the City’s prior written consent. 9. Termination. This being an Agreement for professional services, either party may terminate this Agreement for any reason upon giving the other party written notice of such termination no fewer than ten (10) days in advance of the effective date of said termination. 10. Changes/Additional Work. The City may engage Consultant to perform services in addition to those listed in this Agreement, and Consultant will be entitled to additional compensation for authorized additional services or materials. The City shall not be liable Packet Page 38 of 61 Intergovernmental Contract, Page 4 for additional compensation until and unless any and all additional work and compensation is approved in advance in writing and signed by both parties to this Agreement. If conditions are encountered which are not anticipated in the Scope of Services, the City understands that a revision to the Scope of Services and fees may be required. Provided, however, that nothing in this paragraph shall be interpreted to obligate the Consultant to render or the City to pay for services rendered in excess of the payments discussed in Section 2.A, unless or until an amendment to this Agreement is approved in writing by both parties. 11. Standard of Care. Consultant represents that Consultant has the necessary knowledge, skill and experience to perform services required by this Agreement. Consultant and any persons employed by Consultant shall use their best efforts to perform the work in a professional manner consistent with sound practices, in accordance with the usual and customary professional care required for services of the type described in the Scope of Services. 12. Non-waiver. Waiver by the City of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 13. Non-assignable. The services to be provided by the contractor shall not be assigned or subcontracted without the express written consent of the City. 14. Covenant against contingent fees. The Consultant warrants that he has not employed or retained any company or person, other than a bona fide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bona fide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts or any other consideration contingent upon or resulting from the award of making this contract. For breach or violation of this warranty, the City shall have the right to annul this contract without liability or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 15. Compliance with laws. The Consultant in the performance of this Agreement shall comply with all applicable Federal, State or local laws and ordinances. Including regulations for licensing, certification and operation of facilities, programs and accreditation, and licensing of individuals, and any other standards or criteria as described in the Agreement to assure quality of services. A. B&O Taxes. The Consultant specifically agrees to pay any applicable business and occupation (B & O) taxes which may be due on account of this Agreement. B. Public Disclosure Commission. The Consultant shall be responsible to register with the Public Disclosure Commission (PDC) and provide notice to the City regarding any obligation on his part to report his services to any State or Federal agency. Additionally, Contractor and the City shall sign and Contractor shall forward to the Public Disclosure Commission a registration of lobbyist Packet Page 39 of 61 Intergovernmental Contract, Page 5 form (if necessary) before doing any lobbying or within 30 days after being employed as a lobbyist, whichever occurs first (RCW 42.17.150). Contractor shall be otherwise responsible for compliance with all requirements of chapter 42.17 RCW (lobbying disclosure). C. Potential Conflicts. The contractor shall not advocate or promote any legislative objectives on behalf of existing or potential clients that are determined by the City to be in conflict with City of Edmonds’ legislative objectives. The City acknowledges that contractor currently represents the Cities of Bellevue and Burien before the state legislature, and is a member of a consulting team providing staff services to the Regional Transportation Investment District (RTID). 16. Notices. Notices shall be sent to the following address, with receipt of any notice being deemed effective three days after deposit of written notice. City of Edmonds Contractor Dan Clements Mike Doubleday City of Edmonds Doubleday Government Relations 121 Fifth Avenue North 1561 NW 190th Street Edmonds, WA 98020 Shoreline, WA 98177 425-771-0239 425-533-6305 clements@ci.edmonds.wa.us mikedoubleday@earthlink.net DATED THIS ________ DAY OF _____________________, 2007. CITY OF EDMONDS By: Mayor Gary Haakenson ATTEST/AUTHENTICATED: Sandra S. Chase, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: W. Scott Snyder CONSULTANT Packet Page 40 of 61 Intergovernmental Contract, Page 6 By: Its: Packet Page 41 of 61 City of Edmonds 121 FIFTH AVENUE N. ● EDMONDS, WA 98020 ● 425-771-0239 ADMINISTRATIVE SERVICES DEPARTMENT Gary Haakenson Mayor L:\Productiondb\CCOUNCIL\0009_1299_Patton Boggs 2008 Professional Services Agreement - Addendum #2.doc PROFESSIONAL SERVICES AGREEMENT PATTON BOGGS LLP GOVERNMENTAL RELATIONS SERVICES FOR THE CITY OF EDMONDS Addendum #2 January 1, 2008 – Dec 31, 2008 THIS SECOND ADDENDUM (“Second Addendum”) to the Professional Services Agreement entered into between the City of Edmonds (“the City") and Patton Boggs LLP, ("Consultant"). R E C I T A L S WHEREAS, the City and Consultant (collectively, “the Parties”) executed the Agreement on January 17, 2006 in order to engage the professional services and assistance of a consulting firm to provide lobbying and advocacy services for or related to: local transportation funding, Edmonds Crossing, Edmonds Center for the Arts, homeland security, telecommunications, and other legislative or federal grant matters that may impact the City of Edmonds; WHEREAS, the Parties wish to amend the Agreement for the purposes of defining their respective rights, duties and obligations regarding the additional services Consultant will provide to the City hereunder; WHEREAS, Consultant is willing and able to timely provide said additional services; and NOW, THEREFORE, in consideration of mutual benefits accruing hereunder, the Parties hereby amend the Agreement and execute this First Addendum under the terms and conditions set forth herein. TERMS 1. Underlying Agreement: Amendment. The underlying Agreement between the Parties, executed on January 17, 2006, is hereby amended to, but only to the extent set forth herein. 2. Amendment of Section 2(A) of the Agreement. Section 2(A) of the Agreement is hereby revised to provide in its entirety as follows: A. Payment for work accomplished under the terms of this Agreement shall be a flat fee basis of $4,000 per month. Payments Packet Page 42 of 61 Intergovernmental Contract, Page 2 shall not exceed $48,000 for activities performed during a 12 month period; PROVIDED, in addition to the base amount set forth in the underlying agreement, the current “do not exceed” amount is FORTY EIGHT THOUSAND DOLLARS AND NO/100 ($48,000.00), which is hereby amended and increased by the sum of FORTY EIGHT THOUSAND AND NO/100 ($48,000.00). In no event shall the payment for all work performed pursuant to this Agreement exceed the sum of ONE HUNDRED FORTY FOUR THOUSAND DOLLARS AND 00/100 ($144,000.00). All expenses including, but not limited to, work performed, materials, supplies, equipment, local and out-of- town travel, meals, telephone and electronic communications, utilities, postage, fax, photocopying, and printing are included in the fee; no expense shall be reimbursed without prior written approval by the City; 3. Revised Scope of Services. As consideration for the additional compensation authorized under section 2 of this Second Addendum, Consultant shall provide the same services as those specified under the base Agreement. 4. Amendment and Merger. Except to the limited extent set forth specifically herein, the underlying Agreement shall remain in full force and effect. Any prior understandings, written or oral, shall be deemed merged with the provisions of this Addendum. Neither this Addendum nor the Agreement shall be amended except in writing without the express written consent of the Parties hereto. DONE THIS _____ day of ________________, 2007. CITY OF EDMONDS By: Mayor Gary Haakenson ATTEST/AUTHENTICATED: Sandra S. Chase, City Clerk APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: W. Scott Snyder Packet Page 43 of 61 Intergovernmental Contract, Page 3 CONSULTANT: By ________________________ Its ________________________ STATE OF WASHINGTON ) )ss COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared ,to me known to be the of the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument and that the seal affixed is the corporate seal of said corporation. WITNESS my hand and official seal hereto affixed the day and year first above written. NOTARY PUBLIC My commission expires: Packet Page 44 of 61 City of Edmonds 121 FIFTH AVENUE N. ● EDMONDS, WA 98020 ● 425-771-0239 ADMINISTRATIVE SERVICES DEPARTMENT Gary Haakenson Mayor L:\Productiondb\CCOUNCIL\0010_1299_Salter Joyce Zyker 2008 Professional Services Agreement.doc PROFESSIONAL SERVICES AGREEMENT SALTER JOYCE ZIKER, PLLC LEGAL SERVICES FOR THE CITY OF EDMONDS January 1, 2008 – Dec 31, 2008 THIS AGREEMENT is entered into on the date last below written between the City of Edmonds, Washington, a municipal corporation, (“the City”) and the law firm of Salter Joyce Ziker, PLLC, (the "Attorneys"). FOR AND IN CONSIDERATION OF the terms and conditions set forth below, the parties agree as follows: 1. Services to be Provided. Attorneys will serve as an advisor, providing legal services and assistance in the area of environmental law in order to support the City Attorney coordinating the provision of services under the direction of the City through its Community Services Director. The work provide shall include all services and material necessary to accomplish the objectives in accordance with the Scope of Service, which is marked as Exhibit A, attached hereto and incorporated herein by this reference as fully as if herein set forth. 2. Payment for Services. Legal services performed under this Agreement shall be not exceed $10,000. The City will not be charged separately for normal secretarial or clerical work, the expense for which has been calculated into the Attorney's hourly rate. All expenses including, but not limited to, work performed, materials, supplies, equipment, local travel, meals, telephone and electronic communications, utilities, postage, fax, photocopying, and printing are included in the fee: no expenses shall be reimbursed without prior written approval by the City. Reimbursement will be made by the City for expenditures for court related costs and fees, copying, postage, and computer aided legal research, when made on behalf of the City, and for travel or long distance telephone calls outside of the metropolitan Seattle area when required on City business. Direct costs for experts, printing and other litigation support services provided by third parties in the course of litigation may be forwarded to the City for direct payment. 3. Termination of Agreement. The attorney/client relationship is a personal one involving the ability of the parties to communicate and maintain credibility. Therefore, the City reserves in its sole discretion the right to terminate this Agreement upon reasonable notice. The Attorneys agree that they will not terminate the Agreement without providing for a reasonable period of transition mutually agreed upon by the parties. Packet Page 45 of 61 Intergovernmental Contract, Page 2 4. Designation and Approval of Principal Service Providers. At the date of execution of this Agreement, it has been the representation of the Attorneys that legal services to the City will be provided principally by William F. Joyce, WSBA #15797. The parties recognize that services may be provided by others in the firm based upon their expertise and the need to provide services at appropriate billing rates by junior and senior attorneys, paralegals and legal assistants within the firm in order to achieve the most cost effective provision of legal services. The City reserves the right to review and approve each attorney providing service to the City. By execution of this Agreement, the City specifically approves a provision of services through or under the direction of William F. Joyce by the attorneys shown in the Attorney's proposal, attached hereto as Exhibit A. 5. Ownership of Work Product. All data, materials, reports, memoranda and any other documents developed under this Agreement whether finished or not shall become the property of the City, shall be forwarded to the City at its request and may be used by the City as it sees fit. The City agrees that if products prepared by the Attorneys are used for purposes other than those intended in this Agreement, City does so at City's sole risk and agrees to hold the Attorneys harmless for such use. 6. Insurance. The Attorneys shall maintain proof of professional liability insurance the minimum amount of $2,000,000. 7. Discrimination. Attorneys agree not to discriminate against any employee or applicant for employment or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, or physical, mental or sensory handicap, except where a bona fide occupational qualification exists. 8. Hold Harmless. Attorneys agree to indemnify, hold harmless, and defend the City, its elected and appointed officials, employees and agents from and against any and all claims, judgments or awards of damages, arising out of or resulting from the acts, errors or omissions of Attorneys. The City agrees to indemnify, hold harmless, and defend Attorneys from and against any and all claims, judgments or awards of damages, arising out of or resulting from the acts, errors or omissions of the City, its elected and appointed officials, employees and agents. 9. Independent Contractor. The Attorneys are and shall be at all times during the term of this Agreement independent contractors and shall indemnify and hold harmless the City from all costs associated with the wages and benefits of the Attorneys’ employees. 10. Rules of Professional Conduct. All services provided by Attorneys under this Agreement will be performed in accordance with the Rules of Professional Conduct for attorneys established by the Washington Supreme Court. 11. Work for Other Clients. Attorneys may provide services for clients other than the City during the term of this Agreement, but will not do so where the same may constitute a conflict of interest unless the City, after full disclosure of the potential or actual conflict, Packet Page 46 of 61 Intergovernmental Contract, Page 3 consents in writing to the representation. Any potential conflicts shall be handled in accordance with the Rules of Professional Conduct referred to above. 12. Subcontracting or Assignment. Attorneys may not assign or subcontract any portion of the services to be provided under this Agreement without the express written consent of the City. 13. Entire Agreement. This Agreement represents the entire integrated agreement between the City and the Attorneys, superseding all prior negotiations, representations or agreements, written or oral. This Agreement may be modified, amended, or added to, only by written instrument properly signed by both parties hereto. DONE THIS _____ day of ________________, 2007. CITY OF EDMONDS: By: Mayor Gary Haakenson ATTEST/AUTHENTICATED: APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: Sandra S. Chase, City Clerk W. Scott Snyder CONSULTANT: By ________________________ Its ________________________ STATE OF WASHINGTON ) )ss COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared ,to me known to be the of the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he/she was authorized to execute said instrument and that the seal affixed is the corporate seal of said corporation. WITNESS my hand and official seal hereto affixed the day and year first above written. NOTARY PUBLIC My commission expires: Packet Page 47 of 61 Intergovernmental Contract, Page 4 Exhibit A WILLIAM JOYCE SALTER JOYCE ZIKER, PLLC 1601 FIFTH AVE., SUITE 2040 SEATTLE WA 98101-1686 wjoyce@sjzlaw.com (206) 957-5960 x5951 Scope of Services January 1, 2008 – Dec 31, 2008 1. Services 1.1 General Description Advise the City and support the City Attorney in matters relating to environmental law, e.g., legal support for cost recovery, grant funding, and remediation at and adjacent to 810 Walnut Street, Edmonds, Washington, Unocal /Chevron site, and miscellaneous activities. 1.2 Schedule Contractor shall work January 1 through December 31, 2008. 2. Compensation 2.1 Amount Contractor will be compensated at the rate of $230/hour. Associate attorneys (with the City’s approval only prior to commencement of work) would be billed at $170/hour. Paralegals would be billed at $90/per hour. The City will compensate the Contractor for his hourly monthly totals, but in no event will the entire amount exceed $10,000. 2.2 Activities Covered The fees specified in Section 2.1 will be full compensation for all costs incurred by the Contractor in fulfilling the requirements of this Agreement, including but not limited to, work performed, materials, supplies, equipment, local and out-of- town travel, meals, telephone and electronic communications, utilities, postage, fax, photocopying and printing. 2.3 Billing Procedures Packet Page 48 of 61 Intergovernmental Contract, Page 5 On or before the 5th day of each month, beginning on January 1, 2008, contractor will submit an invoice to the City for services performed during the previous month. The invoice will be in a form and content reasonably acceptable to the City and will describe: a) Services performed b) Number of hours expended in performing the services c) Base contract amount d) Amount invoiced to date e) Current invoiced amount f) Contract balance amount 3. Other Provisions 3.1 Insurance Contractor carries business liability insurance and will name the City of Edmonds as an additional insured and provide the City with a certificate of insurance. 3.2 Termination Either party may terminate the contract upon written notice to the other. 3.3 Avoidance of Potential Conflicts The Contractor shall not engage in any activity on behalf of existing or potential clients that are determined by the City to be in conflict with any City project objective. Packet Page 49 of 61 AM-1298 3.A. Cat Licenses City Council Committee Meetings Date:12/11/2007 Submitted By:Gerry Gannon, Police Department Time:20 Minutes Department:Police Department Type:Information Committee:Public Safety Information Subject Title Cat Licensing Recommendation from Mayor and Staff After receiving direction from the Public Safety Committee, present the full council with recommended Ordinance. Previous Council Action None Narrative The Council asked the police department to come up with possible licensing scenarios for cats. The attached document lists several possible changes to the current licensing ordinance. The department is interested in the direction the Public Safety Committee would like the department to take in regards to ordinance changes for cat licensing. Fiscal Impact Attachments Link: Cat Licenses Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 12/03/2007 05:06 PM APRV 2 Mayor Gary Haakenson 12/03/2007 05:49 PM APRV 3 Final Approval Sandy Chase 12/06/2007 10:06 AM APRV Form Started By: Gerry Gannon  Started On: 11/30/2007 08:40 AM Final Approval Date: 12/06/2007 Packet Page 50 of 61 Packet Page 51 of 61 Packet Page 52 of 61 Packet Page 53 of 61 Packet Page 54 of 61 Packet Page 55 of 61 AM-1296 3.B. SWAT Bus Purchase City Council Committee Meetings Date:12/11/2007 Submitted By:Gerry Gannon, Police Department Time:10 Minutes Department:Police Department Type:Action Committee:Public Safety Information Subject Title Purchase of a replacement SWAT bus. Recommendation from Mayor and Staff Recommend approval for the consent agenda. Previous Council Action None Narrative Our current SWAT bus was purchased in June 1998 and has 708,000 miles. Because of the age of the bus, parts are very difficult to locate. The SWAT Team has used the bus for its annual training which takes place in Eastern Washington. Our Fleet Manager feels the bus is no longer safe to make the trip over the mountains to Eastern Washington. The new bus will come from Community Transit. The bus has been inspected by our Fleet Manager, Dave Sittauer. He feels the bus we are considering to purchase is in good condition and will be a good replacement for our current bus. The cost of the bus is $1,500 plus tax and licensing. In addition, the City will have to purchase the tires because the current tires are leased from Firestone. The cost of the tires is $1,928.60 including tax. The money to purchase the bus will come from the current Special Operations budget. The attached "Vehicle Sale Agreement" has been reviewed by the City Attorney and has been approved in its current version. We are asking that the Chief of Police or his designee be allowed to sign the purchase agreement between the City of Edmonds and Snohomish County Public Transportation Benefit Area Corporation, also known as Community Transit. Fiscal Impact Attachments Link: SWAT Bus Form Routing/Status Route Seq Inbox Approved By Date Status Packet Page 56 of 61 1 City Clerk Sandy Chase 12/03/2007 05:06 PM APRV 2 Mayor Gary Haakenson 12/03/2007 05:49 PM APRV 3 Final Approval Sandy Chase 12/06/2007 10:06 AM APRV Form Started By: Gerry Gannon  Started On: 11/29/2007 09:52 AM Final Approval Date: 12/06/2007 Packet Page 57 of 61 VEHICLE SALE AGREEMENT THIS AGREEMENT between the Snohomish County Public Transportation Benefit Area Corporation, hereinafter called “Community Transit”, and City of Edmonds, as follows: In consideration of the mutual promise of the parties, it is hereby agreed as follows: 1. Community Transit shall provide to the City of Edmonds, the following described bus: 1989 TMC RTS T80-206 VIN#: 1TUMDT9A4KR826304. In exchange; the City of Edmonds shall pay $1,500.00 without tires. Any tax due will be paid by the City of Edmonds at the time of licensing. 2. Community Transit shall provide to the City of Edmonds, the six (6) Firestone tires that are currently on the above bus. In exchange; the City of Edmonds shall pay $1,928.60. This amount includes Washington State Sales Tax. This amount will be remitted to First Transit for payment to Firestone for the purchase of the tires and satisfaction of all obligations under the current lease between Community Transit and Firestone. 3. Community Transit warrant to the City of Edmonds the following: (i) Community Transit is the sole owner and free and clear titleholder of the aforementioned bus, (ii) Community Transit has the legal right to sell such bus, and (iii) Community Transit shall deliver the bus and the tires free and clear of all liens, debt and encumbrances. The City of Edmonds shall not assume any debt or obligation associated or connected to said bus or tires. Community Transit is selling the aforementioned bus and tires to City of Edmonds AS IS, WHERE IS, and WITH ALL FAULTS and WITHOUT RECOURSE regarding the condition of the aforementioned bus. Community Transit makes NO expressed or IMPLIED WARRANTIES or GUARANTEES of any kind regarding the aforementioned bus and tires other than provided herein. 4. Upon payment as provided under this agreement, Community Transit shall deliver and convey title to bus and tires, and the City of Edmonds shall take possession of the same. It shall be the responsibility of Community Transit to ensure that the bus and tires are delivered in the same condition as when last inspected by the City of Edmonds. Community Transit shall cooperate with the City of Edmonds as reasonably necessary to finalize transfer of title and registration of bus and tires. 5. The City of Edmonds shall hold Community Transit harmless from any and all liability or damages arising from Community Transit’s performance of this agreement unless such liability arises from the sole negligence of Community Transit, its agents or employees. {BFP678393.DOC;1/00006.900160/} Packet Page 58 of 61 6. Community Transit shall hold the City of Edmonds harmless from any and all liability or damages arising from the City of Edmonds’s performance of this agreement unless such liability arises from the sole negligence of the City of Edmonds, its agents or employees. CITY OF EDMONDS SNOHOMISH COUNTY PUBLIC TRANSPORTATION BENEFIT AREA CORPORATION By: By: Emmet Heath, Director of Administration Date Name & Title Date {BFP678393.DOC;1/00006.900160/} Packet Page 59 of 61 AM-1304 3.C. Parking Spaces for Disabled Persons City Council Committee Meetings Date:12/11/2007 Submitted By:Sandy Chase, City Clerk's Office Submitted For:Councilmember Michael Plunkett Time:15 Minutes Department:City Clerk's Office Type:Action Committee:Public Safety Information Subject Title Parking spaces for disabled persons. Recommendation from Mayor and Staff Previous Council Action Narrative Councilmember Michael Plunkett prepared the attached memorandum that addresses this topic. Fiscal Impact Attachments Link: Councilmember Plunkett Memo re: Parking Spaces Form Routing/Status Route Seq Inbox Approved By Date Status 1 City Clerk Sandy Chase 12/06/2007 02:01 PM APRV 2 Mayor Gary Haakenson 12/06/2007 03:22 PM APRV 3 Final Approval Sandy Chase 12/06/2007 03:42 PM APRV Form Started By: Sandy Chase  Started On: 12/06/2007 01:46 PM Final Approval Date: 12/06/2007 Packet Page 60 of 61 City of Edmonds COUNCIL OFFICE Date: November 7, 2007 To: Councilmember Deanna Dawson From: Michael Plunkett, Councilmember Subject: Parking Committee Meeting of November 6, 2007 At the Edmonds Downtown Parking Committee Meeting of November 6th, the Committee passed a directive to me in regards to downtown parking regulations. Some folks from the community came by and made reference to the fact that, in their opinion, there are ADA parking zones being used for an inordinate amount of time. Apparently ADA spots are not signed with a time limit; and therefore, it is the opinion of the Parking Committee that a 4-hour time limit for ADA spots should be established particularly in light of the fact that by State law, a person with a ADA designation can park for as long as they want even in the standard 3-hour parking zone. Apparently per the State law, a local jurisdiction providing non-metered on-street ADA parking places may impose by ordinance time restrictions of no less than 4 hours on the use of non-reserved ADA parking spaces by people displaying ADA parking permits or special license plates issued under RCW 46.16.385 Furthermore, all time restrictions must be clearly posted. Therefore, on behalf of the Edmonds Downtown Parking Committee I am requesting that in the downtown commercial zone (exact boundary of zones to be determined upon writing of ordinance) a 4-hour limit be reviewed and considered. Would you please put this item on the next Public Safety Committee meeting, i.e.: time restrictions of no less than 4 hours for non-reserved ADA parking spaces per above-noted RCW. Thanks. c: Mayor Haakenson Police Chief Al Compaan Duane Bowman, Director, DSD Edmonds City Council MEMORANDUM Packet Page 61 of 61