HomeMy WebLinkAbout05-26-20 Council Workshop
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CALL TO ORDER
Mayor Barb Tolbert
PLEDGE OF ALLEGIANCE
ROLL CALL
Mayor Barb Tolbert – Ashleigh
APPROVAL OF THE AGENDA
Mayor Pro Tem Jesica Stickles
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS
WORKSHOP ITEMS – NO FINAL ACTION WILL BE TAKEN
1. Coronavirus Relief Fund Grant for Local Governments ATTACHMENT A
Staff Presentation: Paul Ellis
Council Liaison: Mayor Pro Tem Jesica Stickles
2. Draft Business Rent Relief Grant Program ATTACHMENT B
Staff Presentation: Paul Ellis
Council Liaison: Mayor Pro Tem Jesica Stickles
3. Apparent Low Bid for 2020 Airport Project ATTACHMENT C
Staff Presentation: Marty Wray / Lorene Robinson
Council Liaison: Michele Blythe
4. Apparent Low Bid for 204th/77th Roundabout ATTACHMENT D
Staff Presentation: Jim Kelly
Council Liaison: Jan Schuette
5. Apparent Low Bid for 2020 Utility and Pavement Preservation ATTACHMENT E
Staff Presentation: Jim Kelly
Council Liaison: Debora Nelson
Arlington City Council Workshop
Tuesday, May 26, 2020 at 7:00 pm
City Council Chambers – 110 E Third Street
SPECIAL ACCOMMODATIONS: The City of Arlington strives to provide accessible meetings for people with disabilities. Please contact the
ADA coordinator at (360) 403-3441 or 711 (TDD only) prior to the meeting date if special accommodations are required.
6. Construction Management Contract with KBA for 67th Rail/Trail ATTACHMENT F
Staff Presentation: Jim Kelly
Council Liaison: Jan Schuette
7. Contract with FCS Group for EMS Fee Study ATTACHMENT G
Staff Presentation: Dave Kraski
Council Liaison: Marilyn Oertle
8. Contract with Marysville Regional Fire Authority for Battalion Chief Services ATTACHMENT H
Staff Presentation: Dave Kraski
Council Liaison: Marilyn Oertle
9. Interlocal Agreement with Snohomish County Fire District #21 for ATTACHMENT I
Emergent Shared Employee
Staff Presentation: Dave Kraski
Council Liaison: Jesica Stickles
10. Bond Ordinance to Fund New Fire Station #48 ATTACHMENT J
Staff Presentation: Kristin Garcia
Council Liaison: Mayor Pro Tem Jesica Stickles
11. April Financial Report ATTACHMENT K
Staff Presentation: Kristin Garcia
ADMINISTRATOR & STAFF REPORTS
MAYOR’S REPORT
COMMENTS FROM COUNCILMEMBERS/COUNCILMEMBER REPORTS
PUBLIC COMMENT
For members of the public who wish to speak to the Council. Please limit your remarks to three minutes.
REVIEW OF CONSENT AGENDA ITEMS FOR NEXT MEETING
EXECUTIVE SESSION
RECONVENE
ADJOURNMENT
Mayor Pro Tem Jesica Stickles / Mayor Barb Tolbert
City of Arlington Council Agenda Bill Item: WS #1 Attachment A
$592,200, and approve the expenditure of funds in the proposed budget, and authorize the Mayor to sign the grant agreement.”
DEPARTMENT OF COMMERCE
CORONAVIRUS RELIEF FUND
Revenue Expenses
Grant Award 592,000.00$
Budget
Rent Relief Program (economic stabilization)200,000.00$
Arlington Resource Center (economic stabilization)100,000.00$
City Expenses - COVID*292,000.00$
TOTAL 592,000.00$ 592,000.00$
* City Expenses - COVID
Masks mailed to citizens (Public Health)30,000.00$
Curbside pickup signs (economic stabilization)750.00$
COVID expenses (thru 5/20) 25,000.00$
WSU Downtown Recovery (economic stabilization)28,000.00$
City of Arlington Council Agenda Bill Item: WS #2 Attachment B
Business Rent Relief Grant Program. COVID-19 is causing a catastrophic economic impact nationwide, and Arlington small businesses are no exception. The City recognizes the role of our small businesses in providing jobs to our residents and through sales tax collections to fund the services that are critical to our public. The Business Rent Relief Grant is a piece to the overall recovery. The maximum award per Arlington Business is $3,500. The business must meet criteria, including: have a physical location inside city limits, have a current city business license, and have a business sustainability plan. A draft application is attached. Scoring criteria includes: business sales tax generator, business survival outlook, how business has been affected by COVID-19 closure, if grant will allow business to re-open, retain/rehire employees, which phase business is allowed to fully open, how many years in business, and business recovery plan.
City of Arlington Council Agenda Bill Item: WS #2 Attachment B
pg. 1
City of Arlington Business Rent Relief Grant Program
Applications will be open June 2 and will be accepted through June 8 at 10:00 a.m.
No applications will be accepted after this deadline. Mailed applications must be received by deadline. Qualifying applications
will be scored and priority will be given to those received first.
Mail application to: Community Revitalization, 238 N Olympic Ave, Arlington, WA 98223
Or email application to: administration@arlingtonwa.gov
Or Fax application to: 360-403-4605
Questions: Contact Kristin Garcia kgarcia@arlingtonwa.gov 360-403-3431
or Sarah Lopez 360-403-3448 slopez@arlingtonwa.gov
Background:
The City of Arlington announces the availability of funds for small businesses through the Arlington Business Rent Relief
Program. Funding through the Federal 2020 CARES Act and distributed to Arlington through the WA Department of
Commerce.
Goal:
COVID-19 is causing a catastrophic economic impact nationwide, and Arlington small businesses are no exception. The City
recognizes the role of our small businesses in providing jobs to our residents, and through sales tax collections to fund the
services that are critical to our public. The Business Rent Relief Grant is a piece to the overall recovery.
The focus of this grant program is for small businesses that are critical to supporting our community’s broad-based recovery.
Priority will be given to dining, retail, and service sector establishments.
Funding:
The City has $200,000 to distribute to qualifying small businesses for grants up to $3,500 to cover one to two month’s
rent/lease/mortgage (up to $3,500 per award). Grants will be awarded one time per business.
Eligibility Criteria (must meet all of the following):
• Have a physical location in Arlington city limits (not including home occupancy businesses)
• Have a current City of Arlington business license (one application per business license)
http://arlingtonwa.gov/251/Business-Licenses
• Have 10 or less full time employees (including owner, not including part-time employees)
• Have been negatively impacted by COVID-19
• Are applying for eligible lease/rent/mortgage payments
• Must be at least 51% majority owner in the business
• Must have a business recovery/sustainability plan
• Having received or applied for other assistance does not make you ineligible for this grant.
Eligible costs:
Eligible costs are for payment or reimbursement of existing and current lease/rent/mortgage payments. Documentation of
expense is required.
Grant review process: City of Arlington Finance Director and Community Revitalization Manager will collect grant applications
and compile results. Grants to be awarded by the Mayor and City Council.
pg. 2
Application Information
Date:
Submitted by: Title:
Business owner name:
Business name:
Type of business and industry:
Business address:
Applicant home address:
Contact telephone: Contact email:
UBI number: DUNS number:
City of Arlington business license number:
Business organization format: sole proprietor LLC corporation partnership
Number of employees, including yourself: full time part-time
Application Questions
1. Provide a short description of your business:
2. How your business has been negatively impacted by COVID-19 (mark any or all that apply):
Reduced hours Reduced staff Closed No impact Other
3. Have you had to furlough or lay off employees?
Lay off Furlough #part-time #fulltime
4. Will this grant allow you to (mark any or all that apply):
Reopen Retain/rehire employees
5. Request amount (maximum request is $3,500):
6. What is your current monthly rent/lease/mortgage payment amount?
7. Are you current with payment within 30 Days 60 Days 90 or More Days
8. Have you applied for any financial assistance (this will not affect eligibility)? (mark any or all that apply)
Payroll Protection Program SBA Loans WA State Small Business Grant other
9. How probable is it that your business will survive with this grant?
Expected to Survive Unknown Not Likely
10. What phase can your business fully reopen?
11. How many years in business? Less than 1 year 1-5 years 6 or more years
pg. 3
Attachments
• Proof of current monthly rent/lease mortgage – submit proof of your last two monthly payments made
• Your business sustainability plan.
For information on plans, go to: http://arlingtonwa.gov/666/Business-Resources-COVID-19
Required certification:
If a grant is awarded to my business, I agree that the grant will be used to pay for existing and current lease, rent, or
mortgage payments relating to my business. As a condition of receiving these grants, my business will follow the State
of Washington’s Proclamation 20-25.3 and the Governor’s “Safe Start” plan, Phased Approach to reopening businesses
and physical distancing recommendations. I certify that my business has not, either directly or indirectly, entered into
any agreement, participated in any collusion, or otherwise taken any action to restrain others from the preparation and
submission of a proposal to the City of Arlington for consideration in the award of this grant.
Owner Name
Owner Signature
Date
City of Arlington Council Agenda Bill Item: WS #3 Attachment C
Runway 16/34 Lighting Project, Taxiway Bravo Lighting Project, and Taxiway Bravo Overlay Project. The City advertised the project in the Builders Exchange and Daily Journal on May 5 with a bid due date of May 19, 2020. Lakeside Industries, Inc. came in as the lowest bidder for construction at $2,708,598.44. Staff contacted references for the contractor and the references were complimentary of their work. Staff is requesting that City Council authorize the Mayor to sign the contract with Lakeside Industries, Inc. in the amount not to exceed $2,708,598.44. Staff is also requesting the City Council authorize the Mayor and City Attorney to sign the WSDOT Airport Aid Grant Offer and FAA Grant offer subject to grant award for the 2020 Airport
City of Arlington Council Agenda Bill Item: WS #3 Attachment C
exceed $262,442.00, and a Construction Management Professional Services Agreement with Dowl Engineering at their May 4 City Council Meeting in the amount not to exceed $242,035.00.
The FAA has indicated that they will fund the following from project engineer’s estimates (prior to bids being received):
FAA discretionary grant funding for Taxiway Bravo Lighting Project in the amount of $1,300,000.00 (project is 90% funded by the FAA). Airport staff has applied for WSDOT Grant funding for 5% of the project, which the airport will match if awarded. The airport has the budget for this project if not awarded WSDOT grant funding.
FAA CARES funding and non-primary entitlement/discretionary funding for the Runway 16/34 Lighting Project in the amount of $1,143,182.00 (project is 100% funded by the FAA).
We received FAA supplemental discretionary grant funding for the Taxiway Bravo Overlay Project in the amount of $1,110,000.00 (project is 100% funded by the FAA for Airport Improvement Program (AIP) eligible items). We just received notice from the FAA that we may receive additional funding for the Taxiway Bravo connector work (originally non AIP eligible). Therefore, the FAA may now be funding this project at 100% for AIP eligible portions of the project.
However, there are still portions of the Taxiway Bravo Overlay Project that are not AIP eligible, which includes excess pavement removal. Therefore, the airport has requested WSDOT grant funding at 50% instead of the typical 5% ask for these non-eligible portions of the project, which the airport will match. Because of WSDOT’s limited budget, it is unlikely we will be awarded the 50% WSDOT request for grant funding.
Arlington Municipal Airport
----------------------------------------------------------------------------
18204 59th Avenue Arlington, WA 98223
To: City Council
From: Marty Wray, Airport Operations Manager
Date: May 19th, 2020
Subject: 2020 Airport Improvements Project
ISSUE:
The 2020 Airport Improvement Projects were approved as part of the airport’s
bi-annual budget, and involve the following projects: Rwy 16/34 Lighting Project,
Taxiway Bravo Lighting Project, and Taxiway Bravo Overlay Project.
DISCUSSION & ANALYSIS:
The City advertised the project in the Builders Exchange and Daily Journal on May 5th
with a bid due date of May 19th.
Contractor Name Bid Amount
Lakeside Industries, Inc. came in as the lowest bidder for construction at $2,708,598.44.
Staff contacted references for the contractor and the references were complimentary of
their work.
ALTERNATIVES:
Approve Staff’s Recommendation with Modifications
Table Staff’s Recommendation
Deny Staff’s Recommendation
RECOMMENDATION:
Staff recommends the City Council approve a contract for the 2020 Airport
Improvements Project with Lakeside Industries, Inc. in the amount not to exceed
$2,708,598.44.
425-869-2670 ■ 8420 154th Avenue NE, Suite 120 ■ Redmond, Washington 98052 ■ www.dowl.com
Alaska ■ Arizona ■ Colorado ■ Montana ■ North Dakota ■ Oregon ■ Washington ■ Wyoming
May 19, 2020
Dave Ryan
Airport Director
Arlington Municipal Airport
18204 59th Ave NE, Ste A
Arlington, WA 98223
RE: Arlington Municipal Airport (AWO)
2020 Airport Improvements Project Re-Bid
AIP No. 3-53-0002-028/029/030-2020, City Project No. 19.2007
Recommendation for Award
Dear Dave:
On May 19, 2020, sealed bids were received and opened for the 2020 Airport Improvements
Project Re-Bid at Arlington Municipal Airport. This was a re-bid of the project after all bids were
rejected from the initial bid opening on April 21, 2020. The re-bid bid amounts included 9.2%
percent sales tax. Two bids were submitted, with the results of the bid and the Engineer’s Estimate
as follows:
2020 Airport Improvements
Project Re-Bid
Engineer’s
Estimate
Lakeside
Industries, Inc.
SRV
Construction, Inc.
Bid Schedule A – Rwy 16/34
Lighting Rehabilitation $ 883,068 $ 793,893.28 $ 756,015.62
Bid Schedule B – Twy B
Pavement Rehabilitation $ 826,797 $ 728,967.88 $ 1,006,608.33
Bid Schedule C – Taxiway B
Lighting Install $ 1,005,268 $ 850,919.16 $ 757,256.14
Bid Schedule D – Twy B2, B3,
B4 Pavement Rehabilitation $ 295,877 $ 215,178.60 $ 238,432.74
Bid Schedule E – Excess
Pavement Removal (Non-AIP) $ 100,202 $ 119,639.52 $ 95,320.68
Total Bid Schedules A-D
(Basis of Award) $ 3,011,010 $ 2,588,958.92 $ 2,758,312.83
Total All Bid Schedules
(Total Construction Cost) $ 3,111,212 $ 2,708,598.44 $ 2,853.633.51
No discrepancies were discovered either the Lakeside Industries Inc. bid or the SRV Construction
Inc. bid.
Dave Ryan
Arlington Municipal Airport (AWO)
May 19, 2020
Page 2
Per the Contract Documents, the Basis of Award is the summation of Bid Schedules A, B, C, and
D. Bid Schedule E includes non-AIP eligible work and was not included in the Basis of Award.
Based on the bid totals, Lakeside Industries, Inc. bid of $2,588,958.92 for Bid Schedules A, B, C,
and D is the low bid for this project. Their total bid price including Bid Schedule E is $2,708,598.44.
We have verified the qualifications of the low bidder, the active status of the contractor’s license
from the Department of Labor and Industries, the current status of their licensure with the WA
Department of Revenue (City of Arlington license to be acquired), and that Lakeside Industries,
Inc. is not listed on the List of Parties Excluded from Federal Procurement or Non-Procurement
Programs. All the required forms were submitted with the bid proposal.
There is no published DBE goal for this project; however, we will be tracking DBE expenditures
in accordance with General Provision subsection 90-11 titled CONTRACTOR FINAL PROJECT
DOCUMENTATION.
Based on the outcome of the bids, we recommend that the City of Arlington – Arlington Municipal
Airport (AW) award a construction contract to Lakeside Industries, Inc. in the amount of
$2,708,598.44 for Bid Schedules A, B, C, D, and E.
We recommend issuing construction Notice to Proceed with an expected start date in July.
Please call me at (425) 406-7135 if you have any questions.
Sincerely,
DOWL
Wes Holden, Project Manager
Attachments: Bid Tabulation, Contractor Check Results
Client:City of Arlington - Arlington Municipal Airport (AWO)Bid Opening:5/19/2020
Project:2020 Airport Improvements Project Re-Bid
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
A1 GP-105 Mobilization 1 LS 80,000$ 80,000$ 110,000$ 110,000$ 53,300$ 53,300$
A2 GP 50-06 Construction Surveying 1 LS 30,000$ 30,000$ 19,000$ 19,000$ 37,000$ 37,000$
A3 A-101 FOD Prevention Controls 1 LS 45,000$ 45,000$ 25,000$ 25,000$ 59,500$ 59,500$
A4 G-100 CSPP Compliance and SPCD 1 LS 95,000$ 95,000$ 100,000$ 100,000$ 96,500$ 96,500$
A5 C-102 Temporary Erosion and Sediment Control 1 LS 5,500$ 5,500$ 5,000$ 5,000$ 5,350$ 5,350$
A6 P-209 Crushed Aggregate Base Course 35 TON 140$ 4,900$ 140$ 4,900$ 115$ 4,025$
A7 L-108 Circuit Locate 1 LS 7,500$ 7,500$ 3,700$ 3,700$ 3,600$ 3,600$
A8 L-108 Cable and Wire Demolition 1 LS 12,000$ 12,000$ 9,600$ 9,600$ 9,000$ 9,000$
A9 L-108 No. 8 AWG, L-824, 5kV Type C Cable, Installed 16,500 LF 2.10$ 34,650$ 1.45$ 23,925$ 2.30$ 37,950$
A10 L-108 No. 12 AWG 600V Wire, Installed 6,000 LF 1.00$ 6,000$ 0.65$ 3,900$ 1.20$ 7,200$
A11 L-108
No. 6 AWG, Solid, Bare Copper Counterpoise Wire, Installed
(in Conduit/Duct Only)750 LF 2.10$ 1,575$ 1.35$ 1,013$ 2.40$ 1,800$
A12 L-108 Ground Rod, Installed, Including Connections/Terminations 83 EA 215$ 17,845$ 212$ 17,596$ 170$ 14,110$
A13 L-108 Existing Circuit Modifications 1 LS 7,500$ 7,500$ 10,800$ 10,800$ 3,000$ 3,000$
A14 L-108 Ground Rod Testing, Completed 83 EA 100$ 8,300$ 45$ 3,735$ 84$ 6,972$
A15 L-109 Airport Transformer Vault Equipment Demolition, Completed 1 LS 3,000$ 3,000$ 3,200$ 3,200$ 2,150$ 2,150$
A16 L-109 Construction of Airport Transformer Vault Circuits in Place 1 LS 6,000$ 6,000$ 2,400$ 2,400$ 8,900$ 8,900$
A17 L-109 Construction of Radio Controller in Place 1 EA 5,500$ 5,500$ 6,000$ 6,000$ 4,200$ 4,200$
A18 L-109 Construction of RWY CCR in Place 1 EA 17,000$ 17,000$ 16,500$ 16,500$ 13,200$ 13,200$
A19 L-109 Construction of Airport Transformer Vault Controls in Place 1 LS 10,000$ 10,000$ 6,000$ 6,000$ 12,000$ 12,000$
A20 L-110 Concrete Encased Duct Bank, One 2” PVC SCH 40 60 LF 50$ 3,000$ 29$ 1,740$ 60$ 3,600$
A21 L-125 Runway Light Demolition 70 EA 475$ 33,250$ 350$ 24,500$ 280$ 19,600$
A22 L-125 Lighted Sign Demolition 12 EA 950$ 11,400$ 550$ 6,600$ 600$ 7,200$
A23 L-125 REIL Pair Demolition, (Pair)1 EA 2,500$ 2,500$ 2,000$ 2,000$ 1,800$ 1,800$
A24 L-125 PAPI Demolition, (Assembly)2 EA 3,500$ 7,000$ 3,000$ 6,000$ 2,650$ 5,300$
A25 L-125 Runway Edge/End Light, Elevated 62 EA 1,500$ 93,000$ 1,475$ 91,450$ 1,020$ 63,240$
A26 L-125 Runway Edge Light, Flush 6 EA 3,500$ 21,000$ 3,700$ 22,200$ 2,160$ 12,960$
A27 L-125 Lighted Sign 13 EA 6,500$ 84,500$ 5,500$ 71,500$ 4,800$ 62,400$
A28 L-125 REIL Pair, (Pair)1 EA 22,000$ 22,000$ 20,000$ 20,000$ 16,800$ 16,800$
A29 L-125 PAPI Assembly 2 EA 30,000$ 60,000$ 23,000$ 46,000$ 27,000$ 54,000$
A30 L-125 L-867 Basecan Handhole 2 EA 1,000$ 2,000$ 1,000$ 2,000$ 720$ 1,440$
Corrections
Apparent Low Bidder Apparent 2nd Low Bidder
BID TABULATION
Bid Schedule A - Runway 16/34 Lighting (AIP Eligible)Engineer's Estimate Lakeside Industries, Inc.SRV Construction
1 of 4
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
A31 L-125 Spare Parts 1 LS 5,000$ 5,000$ 5,000$ 5,000$ 3,850$ 3,850$
A32 L-125 Testing, Commissioning, and Training 1 LS 3,000$ 3,000$ 4,000$ 4,000$ 2,400$ 2,400$
A33 T-901 Seeding 3.0 AC 2,500$ 7,500$ 2,000$ 6,000$ 2,700$ 8,100$
A34 T-905 Topsoil 750 CY 75$ 56,250$ 61$ 45,750$ 67$ 49,875$
Subtotal Bid Schedule A
9.2%
Total Bid Schedule A
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
B1 GP-105 Mobilization 1 LS 75,000$ 70,000$ 100,000$ 100,000$ 118,500$ 118,500$
B2 GP 50-06 Construction Surveying 1 LS 40,000$ 40,000$ 35,000$ 35,000$ 50,000$ 50,000$
B3 A-101 FOD Prevention Controls 1 LS 40,000$ 40,000$ 30,000$ 30,000$ 63,000$ 63,000$
B4 G-100 CSPP Compliance and SPCD 1 LS 55,000$ 55,000$ 25,000$ 25,000$ 78,500$ 78,500$
B5 P-101 Pavement Milling, 2-Inch Depth 22,450 SY 3.00$ 67,350$ 2.60$ 58,370$ 2.50$ 56,125$
B6 P-401 Asphalt Surface Course 3,100 TON 150$ 465,000$ 129$ 399,900$ 174$ 539,400$
B7 P-620 Pavement Markings (2 Coats)6,070 SF 2.00$ 12,140$ 1.90$ 11,533$ 1.75$ 10,623$
B8 T-901 Seeding 0.25 ACRE 3,000$ 750$ 2,200$ 550$ 2,700$ 675$
B9 T-905 Topsoil 60 CY 115$ 6,900$ 120$ 7,200$ 83$ 4,980$
9.2%
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
C1 GP-105 Mobilization 1 LS 50,000$ 50,000$ 33,000$ 33,000$ 70,000$ 70,000$
C2 GP 50-06 Construction Surveying 1 LS 20,000$ 20,000$ 14,000$ 14,000$ 13,675$ 13,675$
C3 A-101 FOD Prevention Controls 1 LS 20,000$ 20,000$ 45,000$ 45,000$ 7,650$ 7,650$
C4 G-100 CSPP Compliance and SPCD 1 LS 40,000$ 40,000$ 75,000$ 75,000$ 17,400$ 17,400$
C5 C-102 Temporary Erosion and Sediment Control 1 LS 3,000$ 3,000$ 5,000$ 5,000$ 3,000$ 3,000$
C6 P-101 Remove Taxiway Edge Reflector 102 EA 70$ 7,140$ 60$ 6,120$ 60$ 6,120$
C7 P-101 Remove Taxiway Edge Reflector Concrete Base 66 EA 150$ 9,900$ 80$ 5,280$ 180$ 11,880$
C8 L-108 No. 8 AWG, L-824, 5kV Type C Cable, Installed 13,500 LF 2.10$ 28,350$ 1.50$ 20,250$ 2.30$ 31,050$
C9 L-108 Ground Rod, Installed, Including Connections/Terminations 189 EA 215$ 40,635$ 150$ 28,350$ 168$ 31,752$
C10 L-108 Ground Rod Testing, Completed 189 EA 100$ 18,900$ 45$ 8,505$ 84$ 15,876$
C11 L-109 Construction of Airport Transformer Vault Circuits in Place 1 LS 4,000$ 4,000$ 5,700$ 5,700$ 1,200$ 1,200$
C12 L-108 Existing Circuit Modifications 1 LS 5,000$ 5,000$ 2,600$ 2,600$ 3,600$ 3,600$
Sales Tax
826,797$
Sales Tax
883,068$
808,670$
74,398$
Subtotal Bid Schedule B
Total Bid Schedule B
Engineer's Estimate
757,140$
69,657$
727,008.50$ 692,322.00$
Bid Schedule C - Taxiway B Lighting (AIP Eligible - XC20)
Bid Schedule B - Taxiway B Rehabilitation (AIP Eligible - XB20)
Engineer's Estimate
Lakeside Industries, Inc.SRV Construction
667,553.00$ 921,802.50$
66,884.78$ 63,693.62$
793,893.28$ 756,015.62$
Lakeside Industries, Inc.SRV Construction
61,414.88$ 84,805.83$
728,967.88$ 1,006,608.33$
2 of 4
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
C13 L-109 Construction of TWY CCR in Place 1 EA 20,000$ 20,000$ 19,000$ 19,000$ 8,400$ 8,400$
C14 L-110 Non-Encased Electrical Conduit, One 2” PVC SCH 40 12,500 LF 20$ 250,000$ 12.25$ 153,125$ 13.20$ 165,000$
C15 L-111 Directional Drill Staging 1 EA 1,200$ 1,200$ 1,300$ 1,300$ 720$ 720$
C16 L-111 Directional Drill Conduit - (1)-2"100 LF 70$ 7,000$ 57$ 5,700$ 36$ 3,600$
C17 L-125 Unlighted Sign Demolition 11 EA 750$ 8,250$ 800$ 8,800$ 600$ 6,600$
C18 L-125 Taxiway Edge Light 178 EA 1,400$ 249,200$ 1,250$ 222,500$ 1,020$ 181,560$
C19 L-125 Lighted Sign 11 EA 6,500$ 71,500$ 6,500$ 71,500$ 4,800$ 52,800$
C20 L-125 Spare Parts 1 LS 3,500$ 3,500$ 1,500$ 1,500$ 1,200$ 1,200$
C21 L-125 Testing, Commissioning, and Training 1 LS 3,000$ 3,000$ 3,500$ 3,500$ 2,400$ 2,400$
C22 T-901 Seeding 3.0 AC 2,500$ 7,500$ 2,000$ 6,000$ 2,700$ 8,100$
C23 T-905 Topsoil 750 CY 70.00$ 52,500$ 50.00$ 37,500$ 66.50$ 49,875$
9.2%
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
D1 GP 50-06 Construction Surveying 1 LS 15,000$ 15,000$ 16,000$ 16,000$ 13,000$ 13,000$
D2 A-101 FOD Prevention Controls 1 LS 12,000$ 12,000$ 8,500$ 8,500$ 15,000$ 15,000$
D3 G-100 CSPP Compliance and SPCD 1 LS 20,000$ 20,000$ 15,000$ 15,000$ 18,000$ 18,000$
D4 P-101 Pavement Milling, 2-Inch Depth 6,100 SY 10.00$ 61,000$ 4$ 24,400$ 3$ 21,045$
D5 P-401 Asphalt Surface Course 860 TON 175$ 150,500$ 140$ 120,400$ 165$ 141,900$
D6 P-620 Pavement Markings (2 Coats)1,400 SF 5.00$ 7,000$ 5.00$ 7,000$ 4.80$ 6,720$
D7 T-901 Seeding 0.10 ACRE 4,500$ 450$ 2,500$ 250$ 6,000$ 600$
D8 T-905 Topsoil 20 CY 250$ 5,000$ 275$ 5,500$ 104$ 2,080$
9.2%
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
E1 GP-105 Mobilization 1 LS 12,500$ 12,500$ 18,000$ 18,000$ 10,000$ 10,000$
E2 GP 50-06 Construction Surveying 1 LS 1,000$ 1,000$ 1,500$ 1,500$ 950$ 950$
E3 A-101 FOD Prevention Controls 1 LS 7,500$ 7,500$ 20,000$ 20,000$ 5,000$ 5,000$
E4 P-101 Excess Pavement Removal 5,420 SY 8.00$ 43,360$ 9$ 46,070$ 8$ 40,650$
Total Bid Schedule C
Bid Schedule D - Taxiway B Connectors B2, B3, & B4 Rehabilitation (AIP Eligible)
920,575$
84,693$
1,005,268$
295,877$
270,950$
24,927$
Bid Schedule E - Excess Pavement Removal (Non-AIP Eligible)
Subtotal Bid Schedule D
Sales Tax
Total Bid Schedule D
Sales Tax
Subtotal Bid Schedule C
Engineer's Estimate
Engineer's Estimate
779,230.00$ 693,458.00$
Lakeside Industries, Inc.SRV Construction
197,050.00$ 218,345.00$
71,689.16$ 63,798.14$
850,919.16$ 757,256.14$
Lakeside Industries, Inc.SRV Construction
18,128.60$ 20,087.74$
215,178.60$ 238,432.74$
3 of 4
Number Section Item Quantity Unit Unit Cost Total Cost Unit Cost Total Cost Unit Cost Total Cost
E5 T-901 Seeding 1.20 AC 2,500$ 3,000$ 2,200$ 2,640$ 2,700$ 3,240$
E6 T-905 Topsoil 305 CY 80$ 24,400$ 70$ 21,350$ 90$ 27,450$
9.2%
Total Schedules A, B, C, & D (BASIS OF AWARD)
Total Construction Cost (Schedules A, B, C, D, & E)
3,011,010$
3,111,212$
8,442$
100,202$
91,760$ Subtotal Bid Schedule E
Sales Tax
Total Bid Schedule E
109,560.00$ 87,290.00$
2,588,958.92$ 2,758,312.83$
2,708,598.44$ 2,853,633.51$
10,079.52$ 8,030.68$
119,639.52$ 95,320.68$
4 of 4
5/19/2020 LAKESIDE INDUSTRIES INC
https://secure.lni.wa.gov/verify/Detail.aspx?UBI=601106847&LIC=LAKESI*274JD&SAW=1/3
WA UBI No.
601 106 847
Business type
Corporation
Owner or tradesperson LEE, MICHAEL JAMES
Principals
LEE, MICHAEL JAMES, PRESIDENT
VAN HORNE, DAVID IAN, TREASURER
WOOLSTON, DAX EDWARD, TREASURER
LEE, SHARON MARIE, CHIEF EXECUTIVE
OFFICER
LEE, MAUREEN THERESE, CHIEF
EXECUTIVE OFFICER
OSTERHAUS, MARY PATRICIA, CHIEF
EXECUTIVE OFFICER
LEE, RHOADY ROBERT, CHIEF EXECUTIVE
OFFICER
LEE, TIMOTHY GEORGE, CHIEF EXECUTIVE
OFFICER
DARNELL, LARRY, TREASURER
(End: 06/17/2008)
LEE, JEANNE M, VICE PRESIDENT
(End: 06/22/2012)
WAGGONER, HENRY R, SECRETARY
(End: 07/02/2018)
WHITE, JOHN C, AGENT
(End: 07/02/2018)
LEE, R R SR, PARTNER
(End: 11/27/2007)
STUTGIS, ROBERT E, PARTNER
(End: 11/27/2007)
PO BOX 7016
ISSAQUAH, WA 98027-7016
425-313-2600
KING County
TRAVELERS CAS & SURETY CO
Bond account no.
$12,000.00
Construction Contractor Active
Meets current requirements.
License specialties
GENERAL
License no.
LAKESI*274JD
Effective — expiration
04/04/1973— 07/31/2020
LAKESIDE INDUSTRIES INC
License
Verify the contractor’s active registration / license / certification (depending on trade) and any past violations.
Bond
L&I regional o ces are closed to public visits until fur ther notice. O ces can still help you by phone from 8 a.m. to
5 p.m. weekdays (except state holidays). Use the phone number for your closest regional o ce
(https://lni.wa.gov/agency/contact/#o ce-locations), or you can call the O ce of Information and Assistance at 360-902-5800.
(https://lni.wa.gov)
5/19/2020 LAKESIDE INDUSTRIES INC
https://secure.lni.wa.gov/verify/Detail.aspx?UBI=601106847&LIC=LAKESI*274JD&SAW=2/3
105116927
Received by L&I
06/17/2008
Effective date
07/01/2008
Expiration date
Until Canceled
Zurich American Ins Co
Policy no.
GLA399263015
$1,000,000.00
Received by L&I
05/24/2019
Effective date
06/01/2019
Expiration date
06/01/2020
L&I Account ID
700,227-00
Self Insured.
This business is certified to cover its own
workers’ comp costs. No premiums due.
Inspection results date
09/08/2017
Inspection no.
317946123
Location
8705 Ne 117th Ave
Vancouver, WA 98662-3247
Violations
Insurance
Insurance history
Savings
No savings accounts during the previous 6 year period.
Lawsuits against the bond or savings
No lawsuits against the bond or savings accounts during the previous 6 year period.
L&I Tax debts
No L&I tax debts are recorded for this contractor license during the previous 6 year period, but some debts
may be recorded by other agencies.
License Violations
No license violations during the previous 6 year period.
Certifications & Endorsements
OMWBE Certifications
No active certifications exist for this business.
Apprentice Training Agent
Registered training agent. Check their eligible programs and occupations.
Workers’ Comp
Do you know if the business has employees? If so, verify the business is up-to-date on workers’ comp premiums.
Doing business as
LAKESIDE INDUSTRIES INC
Estimated workers reported
N/A
L&I account contact
- Email: @lni.wa.gov
Public Works Requirements
Verify the contractor is eligible to perform work on public works projects.
Required Training– Effective July 1, 2019
Exempt from this requirement.
Contractor Strikes
No strikes have been issued against this contractor.
Contractors not allowed to bid
No debarments have been issued against this contractor.
Workplace Safety & Health
Check for any past safety and health violations found on jobsites this business was responsible for.
5/19/2020 LAKESIDE INDUSTRIES INC
https://secure.lni.wa.gov/verify/Detail.aspx?UBI=601106847&LIC=LAKESI*274JD&SAW=3/3
Inspection results date
03/13/2017
Inspection no.
317944021
Location
500 Tennant Way
Longview, WA 98632-2449
No violations
Inspection results date
08/08/2014
Inspection no.
317385458
Location
Center Rd. - Lake Larson RD.
Chimacum, WA 98325
No violations
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LAKESIDE INDUSTRIES, INC.
DUNS: 058352022 CAGE Code: 05ZW8
Status: Active
6505 226TH PL SE STE 200
ISSAQUAH, WA, 98027-8905 ,
UNITED STATES
Entity Registration SummaryEntity Registration Summary
Name: LAKESIDE INDUSTRIES, INC.
Business Type: Business or Organization
Last Updated By: Doug Stillgebauer
Registration Status: Active
Activation Date: 12/12/2019
Expiration Date: 12/11/2020
Exclusion SummaryExclusion Summary
Active Exclusion Records? No
Expiration Date: 12/11/2020
Purpose of Registration: All Awards
Entity Overview
5/19/2020 eServices
https://secure.dor.wa.gov/gteunauth/_/#11 1/1
Working together to fund Washington's future
Washington State Department of Revenue
Services Business Lookup LAKESIDE INDUSTRIES
License Information:New search Back to results
Entity name:LAKESIDE INDUSTRIES
Business name:LAKESIDE INDUSTRIES
Entity type:Partnership
UBI #:600-090-607
Business ID:001
Location ID:0005
Location:Active
Location address:6600 230TH SE
ISSAQUAH WA 98027-2524
Mailing address:PO BOX 7016
ISSAQUAH WA 98027-7016
Excise tax and reseller permit status:Click here
Endorsements
Endorsements held at this location License #Count Details Status Expiration date First issuance
Burlington General Business -
Non-Resident
9716 Active Dec-31-2019 Apr-10-2019
Mercer Island General Business -
Non-Resident
740126 Active Dec-31-2019 Oct-09-2019
Normandy Park General Business
- Non-Resident
Active Dec-31-2019 Jan-25-2019
Governing People May include governing people not registered with Secretary of State
Governing people Title
BLACK RIVER SAND & GRAVEL INC Partners
PACIFIC SAND & GRAVEL CO Partners
RED-SAMM MINING CO INC Partners
View Additional Locations
The Business Lookup information is updated nightly. Search date and time: 5/19/2020 3:22:17 PM
5/19/2020 eServices
https://secure.dor.wa.gov/gteunauth/_/#12 1/1
Working together to fund Washington's future
Washington State Department of Revenue
Services Business Lookup LAKESIDE INDUSTRIES
Tax Information New search Back to results
Entity name:LAKESIDE INDUSTRIES
Entity type:Partnership
Excise tax account ID
#:
600-090-607
UBI #:600-090-607
Opened:April 1, 1972
Closed:
Mailing address:6505 226TH PL SE STE 200
ISSAQUAH WA 98027-8905
NAICS:237310 - Highway, Street, and Bridge Construction
Reseller permit:None
Business License Locations Filter
Business name License account ID #Location address
LAKESIDE INDUSTRIES 600090607-001-0005 6600 230TH SE ISSAQUAH WA 98027-2524
LAKESIDE INDUSTRIES INC 600090607-001-0006 6505 226TH PL SE STE 200 ISSAQUAH WA 9802
The Business Lookup information is updated nightly. Search date and time: 5/19/2020 3:26:02 PM
CONSTRUCTION CONTRACT
THIS CONTRACT, dated this 1st day of June, 2020, is by and between the City of Arlington, a
municipal corporation of the State of Washington, hereinafter referred to as the CITY, and Lakeside
Industries, Inc. referred to as the CONTRACTOR.
WHEREAS, the City desires Lakeside Industries, Inc., and WHEREAS, the Contractor is qualified,
willing and able to perform the necessary work.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, to
be kept, performed and fulfilled by the respective parties thereto, and other valuable considerations, it
is mutually agreed as follows:
1.0
SERVICE BY CONTRACTOR
Contractor agrees to perform the services described in the following project specification 2020
AIRPORT IMPROVEMENTS PROJECT. These documents are on file with the Project Manager, a copy is
held by the contractor, and by this reference incorporated herein.
2.0
TIME OF COMPLETION
All work under this Agreement is to be done within 80 Working Days of notice to proceed.
3.0
RESPONSIBILITY OF CONTRACTOR
3.1 Safety Contractor shall take all necessary precautions for the safety of employees on the work
and shall comply with all applicable provisions of Federal, State and municipal safety laws and building
codes. Contractor shall erect and properly maintain, at all times, as required by the conditions and
progress of the work, all necessary safeguards for protection of workmen and the public; shall post
danger signs warning against known or unusual hazards.
3.2 Warranty The Contractor shall be responsible for correcting all defects in workmanship and
material within one year after acceptance of this work. When corrections of defects are made,
Contractor shall be responsible for correcting all defects in workmanship and/or materials in the
corrected work for one year after acceptance of the corrections by the City. The Contractor shall start
work to remedy such defects within seven (7) days of mailing notice of discovery thereof by the City and
shall complete such work within a reasonable time. In emergencies where damage may result from
delay or where loss of services may result, such corrections may be made by the City, in which case the
cost shall be borne by the Contractor. In the event the Contractor does not accomplish corrections at
the time specified, the work will be otherwise accomplished and the cost of same shall be paid by
Contractor.
The Contractor shall be liable for any costs, losses, expenses or damages including consequential
damages suffered by the City resulting from defects in the Contractor’s work including, but not limited
to, cost of materials and labor extended by the City in making emergency repairs and cost of engineer,
inspection and supervision by the City. The Contractor shall hold the City harmless from any and all
claims which may be made against the City as a result of any defect work and the Contractor shall
defend any such claim at his own expense. Where materials or procedures are not specified in the
contract, the City relies on the professional judgment of the Contractor to make appropriate selections.
3.3. Prevailing Wages Contractor shall comply with every provision of Chapter 39.12 of the Revised
Code of Washington.
3.4. Non-discrimination Contractor will not discriminate against any employee or applicant for
employment because of race, creed, color, sex, age, national origin, marital status, physical or other motor
handicap, unless based upon a bonafide occupational qualification.
3.5 Employment Any and all employees of the Contractor while engaged in the performance of any
work or services required by the Contractor under this agreement, shall be considered employees of the
Contractor only and not of the City and any and all claims that may or might arise under the Worker's
Compensation Act on behalf of said employees, while so engaged and any and all claims made by a third party
as consequence of any negligent act or omission on the part of the Contractor's employees, while so engaged
on any of the work or services provided or rendered herein, shall be the sole obligation and responsibility of
the Contractor.
4.0
SUBCONTRACTOR RESPONSIBILITY
4.1 The Contractor shall include the language of this section in each of its first tier subcontracts, and
shall require each of its subcontractors to include the same language of this section in each of their
subcontracts, adjusting only as necessary the terms used for the contracting parties. The requirements of
this section apply to all subcontractors regardless of tier.
At the time of subcontract execution, the Contractor shall verify that each of its first-tier subcontractors
meets the following bidder responsibility criteria:
1. Have a current certificate of registration as a contractor in compliance with chapter 18.27 RCW, which
must have been in effect at the time of subcontract bid submittal;
2. Have a current Washington Unified Business Identifier (UBI) number;
3. If applicable, have:
a. Industrial Insurance (worker’s compensation) coverage for the subcontractor’s employees
working in Washington, as required in Title 51 RCW;
b. A Washington Employment Security Department number, as required in Title 50 RCW;
c. A Washington Department of Revenue state excise tax registration number, as required in Title
82 RCW;
d. An electrical contractor license, if required by Chapter 19.28 RCW;
e. An elevator contractor license, if required by Chapter 70.87 RCW.
4. Not be disqualified from bidding on any public works contract under RCW 39.06.010 or 39.12.065(3).
5.0
COMPENSATION
5.1 The City shall pay the Contractor for the services identified in this contract the total amount of
$2,708,598.44 including tax. Contractor shall submit monthly, for the City’s acceptance, a written
Contract Project Estimate setting forth the quantities of work satisfactorily performed to date, and an
invoice covering the contract price applicable to the work, unless otherwise directed. The City will,
within 30 days after receipt of acceptable Contractor’s estimate and invoice, pay the Contractor the
accepted progress invoice less actual accumulated amount previously paid.
5.2 The City shall have the right to withhold payment to Contractor for any work not completed in a
satisfactory manner until such time as Contractor modifies such work so that the same is satisfactory.
6.0
CITY'S RIGHT TO TERMINATE CONTRACT
6.1 The City may terminate the contract upon the occurrence of any one or more of the events hereafter
specified:
a. If the Contractor should be adjudged bankrupt.
b. If the Contractor should make a general assignment of benefit of his creditors.
c. If a receiver should be appointed on the account of insolvency of the Contractor.
d. If Contractor should persistently or repeatedly refuse or fail to supply a sufficient number of
properly skilled workmen or proper materials for completion of the work.
e. If the Contractor shall fail to complete the work within the time specified in the contract.
f. If the Contractor shall fail to make a prompt payment to subcontractors or for material or
labor.
g. If Contractor should persistently disregard laws, ordinances or regulations of Federal, State
or municipal agencies or subdivisions thereof.
h. If Contractor should persistently disregard instructions of Management, or otherwise be
guilty of a substantial violation of the contract.
6.2 This contract Agreement, and any amendments or extensions to said Agreement may be terminated
for any reason not previously identified by either party by giving ten (10) days written notice to the other
party. In the event that the contract is terminated by the City, Contractor shall not be entitled to receive any
further balance of the amount to be paid under this contract until the work shall have been fully finished. At
such time, if the unpaid balance of the amount to be paid under this contract exceeds the expense incurred
by the City in finishing the work, all of the damages sustained or which may be sustained by reason of such
refusal, neglect, failure of discontinuance of employment, such excess shall be paid by the City to Contractor.
If such expense and damages shall exceed the unpaid balance, Contractor and his surety and each thereof
shall be jointly and severally liable therefore to City and shall pay the difference to the City. Such expense
and damage shall include all legal costs incurred by the City in employment of attorneys to protect the rights
and interests of the City under the contract; provided such legal costs shall be reasonable.
7.0
OWNERSHIP OF DOCUMENTS
7.1 On payment to the Contractor by the City of all compensation due under this Agreement all finished
or unfinished documents and material prepared by the Contractor with funds provided by this Agreement
shall become the property of the City and shall be forwarded to the City at its request.
7.2 Any records, reports, information, data or other documents or materials given to or prepared or
assembled by the Contractor under this Agreement will be kept as confidential and shall not be made
available to any individual or organization by the Contractor without prior written approval of the City or by
court order.
8.0
CLAIMS
8.1 Any claim against the City for damages, expenses, costs or extras arising out of the performance of
the contract must be made in writing to the City within thirty (30) days after the discovery of such damage,
and in no event later than the time of approval by owner of final payment. Contractor, upon making
applications for final payment, shall be deemed to have waived this right to claim for any other damages for
which claim has not been made, unless such claim for final payment includes notice of additional claim and
fully describes the alleged damage.
9.0
ASSIGNMENT
9.1 This Agreement may not be assigned or otherwise transferred by the parties hereto without the
written consent of the other party.
10.0
MODIFICATION
10.1 No change, alteration, modification or addition to the Agreement will be effective unless it is in
writing and properly signed by all parties thereto.
11.0
HOLD HARMLESS
11.1 Contractor shall hold the City and its officers, agents and employees harmless, from all suits, claims or
liabilities of any nature, including attorney's fees, costs and expenses for or on account of injuries or damages
sustained by any persons or property resulting in whole or in part from negligent activities or omissions of
the Contractor, its agents or other renumeration for services; and if a suit in respect to the above be filed, the
Contractor shall appear and defend the same at its own cost and expense, and if judgment is rendered or
settlement made requiring payment of damages by the City, which damages are based in whole or in part on
the negligent activities or omissions of the Contractor, its agents or employees, the Contractor shall pay same.
12.0
INSURANCE
The Contractor’s required insurance shall be of the types and coverage as stated below:
12.1 Insurance required. Contractor shall maintain at all times the following insurance during the term
of this agreement:
a. Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles.
Coverage shall be at least as broad as Insurance Services Office (ISO) form CA 00 01.
b. Commercial General Liability insurance shall be as least at broad as ISO occurrence form CG 00
01 and shall cover liability arising from premises, operations, independent contractors, products-
completed operations, stop gap liability, personal injury and advertising injury, and liability
assumed under an insured contract. The Commercial General Liability insurance shall be
endorsed to provide a per project general aggregate limit using ISO form CG 25 03 05 09 or an
equivalent endorsement. There shall be no exclusion for liability arising from explosion, collapse
or underground property damage. The Public Entity shall be named as an additional insured
under the Contractor’s Commercial General Liability insurance policy with respect to the work
performed for the Public Entity using ISO Additional Insured endorsement CG 20 10 10 01 and
Additional Insured-Completed Operations endorsement CG 20 37 10 01 or substitute
endorsements providing at least as broad coverage.
c. Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of
Washington.
12.1 Minimum Limits of Insurance Contractor shall maintain limits no less than:
The Contractor shall maintain the following insurance limits:
a. Automobile Liability insurance with a minimum combined single limit for bodily
injury and property damage of $1,000,000 per accident.
b. Commercial General Liability insurance shall be written with limits no less than
$1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000
products-completed operations aggregate limit.
c. Builders Risk Insurance shall be written in the amount of the completed value of the
project with no coinsurance provisions. (If Applicable)
d. Contractor is required to procure and maintain Pollution Legal Liability Insurance
covering losses caused by pollution conditions that arise from the operations of the
Contractor. The Pollution Legal Liability Insurance shall be written in an amount of
at least $1,000,000. Coverage may be written on a claims-made basis. (If Applicable)
12.2 The Policies are to contain, and be endorsed to contain the following provisions:
a. General Liability, Builders Risk Insurance (If Applicable), and Pollution Legal Liability (If
Applicable)
1. The City, its officials, employees and volunteers are to be covered as additional
insured as respect to liability arising out of activities performed by or on behalf of
the Contractor.
2. Contractor's insurance coverage shall be primary insurance as respects the City, its
officials, employees and volunteers. Any insurance or self-insurance maintained by
the City, its officials, employees and volunteers shall be excess of the Contractor's
insurance and shall not contribute with it.
3. Any failure to comply with the reporting provisions of all policies shall not affect the
coverage provided to the City, its officials, employees or volunteers.
b. All Coverage Each insurance policy required by this clause shall state that coverage shall
not be suspended, voided, canceled by either party, reduced in coverage or in limits except
after thirty (30) days prior written notice by certified mail, return receipt requested, has been
given to the City.
12.3 Acceptability of Insurers Insurance is to be placed with insurers with a Best's rating of no less than
A:XIII, or with an insurer acceptable to the City.
12.4 Verification of Coverage Contractor shall furnish the City with certificates of insurance effecting
coverage required by this clause. The certification for each insurance policy is to be signed by a person
authorized by that insurer to bind coverage on its behalf. The certificates are to be received and approved
by the City before work commences. The City reserves the right to require complete, certified copies of all
required insurance policies, at any time.
12.5 Subcontractors The Contractor shall have sole responsibility for determining the insurance coverage
and limits required, if any, to be obtained by subcontractors, which determination shall be made in
accordance with reasonable and prudent business practices.
12.6 Asbestos Or Hazardous Materials Abatement Work If asbestos abatement or hazardous materials
work is performed, Contractor shall review coverage with the City’s Risk Manager and provide scope and
limits of coverage that are appropriate for the scope of work. No asbestos abatement work will be performed
until coverage is approved by Risk Manager.
12.7 Notice of Cancellation The Contractor shall provide the City and all Additional Insureds for this work
with written notice of any policy cancellation, within two business days of their receipt of such notice.
12.8 Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as
required shall constitute a material breach of contract, upon which the City may, after giving five business
days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion,
procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so
expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due
the Contractor from the City.
13.0
INDEPENDENT CONTRACTOR
13.1 Contractor is and shall be at all times during the term of this Agreement an independent contractor.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written.
CITY OF ARLINGTON, WASHINGTON: CONTRACTOR: Lakeside Industries, Inc.
By By
Mayor Barbara Tolbert
City of Arlington Council Agenda Bill Item: WS #4 Attachment D
COUNCIL MEETING DATE: May 26, 2020 SUBJECT: Apparent Low Bid for the 204th St. and 77th Ave. Roundabout Project (204th Roundabout) ATTACHMENTS: Preliminary Bid Tab Sheet DEPARTMENT OF ORIGIN Public Works; James Kelly – 360-403-3505 EXPENDITURES REQUESTED: $2,488,904.00 (Apparent Low Bid) BUDGET CATEGORY: TIB Grant, Transportation/Water/Sewer/Storm CIP Funds BUDGETED AMOUNT: $2,750,000.00 LEGAL REVIEW: DESCRIPTION: Review of bid tabulation for the 204th & 77th Roundabout Project. HISTORY: In 2018 city staff applied for and received a grant from the Transportation Improvement Board to fund installation of a roundabout at the 204th thdangerous and has had multiple accidents and one fatality. Upgrading the intersection to a roundabout will provide needed safety and increase mobility at this very busy intersection. Design of the 204th Roundabout was completed in April 2020 and the project was advertised for bid in early
(Contractor) in the amount of $X,XXX,XXX and authorize the Mayor to sign the construction contract, pending review by the City Attorney.”
City of Arlington Council Agenda Bill Item: WS #5 Attachment E
COUNCIL MEETING DATE: May 26, 2020 SUBJECT: Apparent Low Bid for the 2020 Utility Improvement and Pavement Preservation (UPP) Project ATTACHMENTS: Preliminary Bid Tab Sheet DEPARTMENT OF ORIGIN Public Works; Jim Kelly, Director – 360 403-3505 EXPENDITURES REQUESTED: $2,497,643.04 (Apparent Low Bid) BUDGET CATEGORY: TDB and Water/Sewer/Storm CIP Funds BUDGETED AMOUNT: $3,226,500.00 LEGAL REVIEW: DESCRIPTION: Review of bid tabulation for the 2020 Utility Improvement and Pavement Preservation Project. HISTORY: The City has planned capital improvement projects for the years 2018 – 2021 for the replacement of aged and failing water-sewer-storm infrastructure and to resurface roads in the same streets where utility improvements occur. The roads that get resurfaced are the ones listed in the TBD Pavement Preservation Plan. The capital improvements and pavement preservation for year 2020 were advertised for bid in early May
(Contractor) in the amount of $X,XXX,XXX, and authorize the Mayor to sign the construction contract, pending review by the City Attorney.”
City of Arlington Council Agenda Bill
Item: WS #6 Attachment F COUNCIL MEETING DATE: May 26, 2020 SUBJECT: Contract with KBA for Construction Management (CM) services for the BNSF Rail/Trail Project ATTACHMENTS: KBA Construction Management Scope of Work and Fee DEPARTMENT OF ORIGIN Public Works; Jim Kelly, Director – 360-403-3505 EXPENDITURES REQUESTED: $ 23,600 BUDGET CATEGORY: FHWA Grant, Transportation Improvement Funds
($395,000.00 budgeted 2019 – will move to 2020) BUDGETED AMOUNT: $395,000.00 LEGAL REVIEW: DESCRIPTION: Scope of Work and Fee for KBA, Inc. to provide construction management services to support the BNSF Rail Trail Project. HISTORY: In 2017 City staff applied for and received a grant from WSDOT/FHWA to fund safety improvements at the 67thdangerous and is the location of numerous and severe accidents. The project will upgrade the railroad signal system to LED, install additional pedestrian lights and modify the railroad crossing approach to be more perpendicular to reduce accidents. The BNSF Rail Trail construction was bid and awarded to PNW Civil in April 2020. Due to federal funding requirements, the city is required to have an outside Construction Management firm manage the
KBA, Inc. April 27, 2020
\\Kba-server\kba-data\Projects\Contracts\Client\Arlington\BP-20-024-01 Arlington 67th Avenue\Drafts&NegotiationRecords\In-houseDrafts\Agreement\SCOPE-Arlington67th-
v4.docx 1 of 6
EXHIBIT A
SCOPE OF SERVICES
Construction Management Services
for
67th Ave Rail/Trail Crossing Improvement
KBA, Inc. (Consultant) will provide Construction Management (CM) services to the City of Arlington (City)
for the Project known as 67th Ave Rail/Trail Crossing Improvement. These services will include
consultation, contract administration, field observation, and documentation as required during the
construction of the Project, as detailed below.
Project Description: The Centennial Trail alignment through Arlington is located on the east side of
67th Ave and crosses the Burlington Northern Santa Fe railroad tracks at a very skewed angle (approx.
30-degree angle). The proposed solution is for advanced rail crossing signalization and realignment of the
trail so that it crosses the rails at a perpendicular angle. The Designer of Record on this project is
TerraVista NW LLC (Designer).
I. CONSTRUCTION MANAGEMENT SERVICES
A. Consultant Contract Management. Provide overall day-to-day management of the
consultant contract and staff, including:
1. Decide on best modes and frequency of communication with City and Designer. Liaison and
coordinate with City on a regular basis to discuss Project issues and status.
2. Review monthly expenditures and CM team scope activities. Prepare and submit to City
monthly, an invoice and progress report describing CM services provided that month.
Deliverables
Monthly invoices and progress reports
B. Preconstruction Services
1. Review Contract Documents to familiarize team with Project requirements.
2. Organize and lead preconstruction conference:
a. Prepare and distribute notices.
b. Prepare agenda.
c. Conduct the meeting.
d. Prepare and distribute meeting notes to attendees and affected agencies.
3. Provide one set of preconstruction photographs.
Deliverables
Preconstruction Conference Notice, Agenda, and Notes
Preconstruction photos, digital files on electronic storage medium
C. Construction Phase Services – Contract Administration
1. Liaison with the City, construction contractor, Designer, appropriate agencies, property
owners, and utilities.
2. Schedule Review:
a. Review construction contractor’s schedules for compliance with Contract Documents.
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b. Monitor the construction contractor’s conformance to schedule and require revised
schedules when needed. Advise City of schedule changes.
3. Progress Meetings. Lead regular (usually weekly) progress meetings with the construction
contractor, including City pre-briefing. Prepare weekly meeting agenda and meeting notes
and distribute copies to attendees. Track outstanding issues on a weekly basis.
4. Update CM Plan as needed to reflect changes in policy and/or procedure that occur during
the Project, and orient CM Team to the changes.
5. Manage Submittal Process. Track and review, or cause to be reviewed by other appropriate
party, work plans, shop drawings, samples, test reports, and other data submitted by the
construction contractor, for general conformance to the Contract Documents.
6. Record of Materials. Provide and maintain Record of Materials indicating anticipated material
approvals, material compliance documentation, and materials testing requirements. Maintain
records of material compliance documentation received and advise City and Contractor of
any known deficiencies.
7. Prepare weekly statement of working days and distribute to the City and Contractor.
8. Manage RFI (Request for Information) process. Track and review/evaluate RFIs, or cause to
be reviewed/evaluated by other appropriate party. Manage responses to RFIs.
9. Change Management. Evaluate entitlement, and prepare scope, impact, and independent
estimate for change orders. Facilitate resolution of change orders.
10. Monthly Pay Requests. Prepare monthly progress estimates for payment. Review payment
requests submitted by the construction contractor for comparison and reconcile differences.
Review with Agency and Contractor, and recommend approval, as appropriate.
11. Evaluate construction contractor’s Schedule of Values for lump sum items. Review the
Contract Price allocations and verify that such allocations are made in accordance with the
requirements of the Contract Documents.
12. Notify construction contractor of noncompliance or deficiencies.
13. Prevailing Wage Monitoring:
a. Monitor Payroll Compliance. Review Statements of Intent to Pay Prevailing Wage
against the Contract Document requirements. Collect, record, and check weekly certified
payrolls and conduct on-site wage interviews, both at a frequency documented in
accordance with Agency guidelines.
14. Assist the City in the investigation of malfunctions or failures during construction.
15. Public Information. Provide information for City to prepare media communications and public
notices on Project status. Provide information for City’s inclusion into a Project website
and/or newsletters, if requested.
16. Record Drawings. Review not less than monthly, the construction contractor’s redline set of
contract plans. Maintain a CM Team set of conformed drawings tracking plan changes,
location of discovered anomalies and other items, as encountered by the CM team. Use
these markups to check the progress of the Contractor-prepared Record Drawings.
17. Document Control. Establish and maintain document filing and tracking systems, following
City guidelines and meeting funding agency requirements. Collect, organize, and prepare
documentation on the Project.
a. One hard copy of files will be kept in the Project field office.
b. Electronic documentation will be stored in a Project Website, using SharePoint software,
managed and hosted by the Consultant. The City will be provided with up to 3 licenses
for their and the construction contractor’s use of the SharePoint website during the
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Project. Consultant will provide one training session each for City and construction
contractor users of the SharePoint system.
c. The Project SharePoint site will transition to “read-only” access upon expiration of the
Agreement, or upon project completion and transfer of final records, whichever occurs
first. Transference of final records will include a digital copy of the files stored in the
Project SharePoint site. Access to SharePoint will expire following that date.
18. To comply with Article XIX. Protection of Confidential Information of the LAG Agreement,
maintain a log documenting the following: the State’s Confidential Information received in the
performance of this AGREEMENT; the purpose(s) for which the State’s Confidential
Information was received; who received, maintained and used the State’s Confidential
Information; and the final disposition of the State’s Confidential Information.
19. Project Closeout. Prepare Letters certificates of Substantial (including punch list), Physical,
and Final Completion for City approval and signature. Prepare final pay estimate for City
approval and processing.
20. Final Records. Compile and convey final Project records, transferring to the City for archiving
at final acceptance of the Project. Records will consist of hard copy originals and electronic
records on electronic storage medium.
Deliverables
Schedule Review Comments
Meeting Agendas and Notes
Submittal Log
Record of Materials
RFI Log
Change Order(s)
Progress Pay Requests
Certificates of Completion
Final records – hard copy and electronic
D. Construction Phase Services – Field
1. Observe the technical conduct of the construction, including providing day-to-day contact with
the construction contractor, City, utilities, and other stakeholders, and monitor for adherence
to the Contract Documents. The Consultant’s personnel will act in accordance with Sections
1-05.1 and 1-05.2 of the WSDOT/APWA Standard Specifications.
2. Observe material, workmanship, and construction areas for compliance with the Contract
Documents and applicable codes. Advise the City of any non-conforming work observed
during site visits.
3. Prepare Inspector Daily Reports (IDRs), recording the construction contractor’s operations as
actually observed by the Consultant; includes quantities of work placed that day, contractor’s
equipment and crews, and other pertinent information.
4. Interpret Construction Contract Documents, in coordination with Designer.
5. Evaluate issues which may arise as to the quality and acceptability of material furnished,
work performed, and rate of progress of work performed by the construction contractor.
6. Establish communications with adjacent property owners. Respond to questions from
property owners and the general public.
7. Coordinate with permit holders on the Project to monitor compliance with approved permits, if
applicable.
8. Prepare field records and documents to help facilitate administration of the Project in
accordance with funding agency requirements.
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9. Attend and actively participate in regular on-site meetings.
10. Take periodic digital photographs during the course of construction. Photographs to be
labeled and organized as detailed in the CM Plan.
11. Punch List. Upon substantial completion of work, coordinate with the City and affected
agencies, to prepare a ‘punch list’ of items to be completed or corrected. Coordinate final
inspection with those agencies.
12. Testing. Cause to be conducted, materials and laboratory tests. Coordinate the work of the
Field Representative(s) and testing laboratories in the observation and testing of materials
used in the construction; document and evaluate results of testing; and inform City and
construction contractor of deficiencies.
Deliverables
IDRs with Project photos – submitted on a weekly basis
Field Note Records and Daily Reports of Force Account Worked and other source documents
Punch List(s)
E. Assumptions
1. Budget:
a. Staffing levels are anticipated in accordance with the attached budget estimate.
Consultant services are budgeted for a 45 working day period, from May 1, 2020 through
July 3, 2020. This is intended to span the originally planned construction duration, plus
time allotted for Project setup and closeout. Overtime has not been figured into the
budget.
b. Consultant will work up to the limitations of the authorized budget. If additional budget is
needed to cover such instances as the following, City and Consultant will negotiate a
supplement to this Agreement:
i. The contractor’s schedule requires inspection coverage of extra crews and shifts.
ii. The construction contract runs longer than the time period detailed above.
iii. Any added scope tasks.
iv. Adjustment of Consultant Indirect Cost Rate (ICR) percentage pursuant to the terms
as outlined in Section V of the LAG Agreement.
v. The work is anticipated to be performed during daytime hours. Should night work be
necessary, a 15 percent differential for labor will be applied to all night shift hours
worked by Consultant’s employees.
c. The budget allocations shown on Exhibit B are itemized to aid in Project tracking
purposes only. The budget may be transferred between people, or between labor and
expenses, provided the total contracted amount is not exceeded without prior
authorization.
d. The budget assumes that Consultant’s standard forms, logs, and processes will be used
on the Project SharePoint site. Any customization to meet specialized City requirements
will be Extra Work.
e. Should Consultant’s level of effort extend beyond the time period detailed in the attached
Exhibit B - Estimate, and into a new year, labor rates will adjust annually on January 1,
with 30-day written notice to Agency.
2. Items and Services City will provide:
a. Meeting arrangements and facilities for preconstruction meetings.
b. Field office, including:
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i. workstations (desk, chair, and storage) for one 1 staff
ii. conference table and chairs
iii. combination printer/copier/scanner machine with these capabilities: 11x17 size, color
iv. miscellaneous office supplies
v. utilities and sanitary facilities
c. Retain Engineer of Record for shop drawing review, RFIs, design changes, and final
record drawings.
d. Coordination with and enforcement of utility franchise agreements and/or contracts and
schedules for services related to this Project.
e. Verify that the required permits, bonds, and insurance have been obtained and submitted
by the construction contractor. Obtain all permits not required to be provided by
construction contractor.
f. Construction Survey. Provide project control survey and staking that is not already
assigned to the construction contractor.
3. Scope:
a. The SharePoint tool being used on this Project is proprietary to the Consultant (KBA,
Inc.), and may not be used by any other party or on any other project without the written
permission and involvement of KBA, Inc.
b. Consultant will provide inspection services for the days/hours that its’ Inspector(s)
personnel is/are on-site. The Inspector(s) will not be able to observe or report
construction activities, or collect documentation, during the time they are not on-site.
c. The Consultant’s monitoring of the construction contractor's activities is to ascertain
whether or not they are performing the work in accordance with the Contract Documents;
in case of noncompliance, Consultant will reject non-conforming work and pursue the
other remedies in the interests of the City, as detailed in the Contract Documents. The
Consultant cannot guarantee the construction contractor’s performance, and it is
understood that Consultant shall assume no responsibility for proper construction means,
methods, techniques, Project site safety, safety precautions or programs, or for the failure
of any other entity to perform its work in accordance with laws, contracts, regulations, or
City’s expectations.
d. Definitions and Roles. The use of the term “inspect” in relation to Consultant services is
synonymous with “construction observation,” and reference to the “Inspector” role is
synonymous with “Field Representative,” and means: performing on-site observations of
the progress and quality of the Work and determining, in general, if the Work is being
performed in conformance with the Contract Documents; and notifying the City if Work
does not conform to the Contract Documents or requires special inspection or testing.
Where “Specialty Inspector” or “specialty inspection” is used, it refers to inspection by a
Building Official or independent agent of the Building Official, or other licensed/certified
inspector who provides a certified inspection report in accordance with an established
standard.
e. Because of the prior use of the Project site, there is a possibility of the presence of toxic
or hazardous materials. Consultant shall have no responsibility for the discovery,
presence, handling, removal or disposal of toxic or hazardous materials, or for exposure
of persons to toxic or hazardous materials in any form at the Project site, including but
not limited to asbestos, asbestos products, polychlorinated biphenyl (PCB), or other toxic
substances. If the Consultant suspects the presence of hazardous materials, they will
notify the City immediately for resolution.
f. Review of Shop Drawings, samples, and other submittals will be for general conformance
with the design concept and general compliance with the requirements of the contract for
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construction. Such review will not relieve the Contractor from its responsibility for
performance in accordance with the contract for construction, nor is such review a
guarantee that the work covered by the shop drawings, samples and submittals is free of
errors, inconsistencies or omissions.
g. Any opinions of probable construction cost provided by the Consultant will be on the
basis of experience and professional judgment. However, since Consultant has no
control over competitive bidding or market conditions, the Consultant cannot and does
not warrant that bids or ultimate construction costs will not vary from these opinions of
probable construction costs.
h. Reviewing and commenting on contractor’s schedules, is for the purpose of estimating
number of days to complete a project, and for identifying potential schedule and
coordination challenges and determining compliance with the construction contract. It is
not a guarantee that a construction contractor will complete the Project in that sequence
or timeline, as means and methods are the responsibility of the construction contractor.
i. Consultant is not responsible for any costs, claims or judgments arising from or in any
way connected with errors, omissions, conflicts or ambiguities in the Contract Documents
prepared by others. The Consultant does not have responsibility for the professional
quality or technical adequacy or accuracy of the design plans or specifications, nor for
their timely completion by others.
j. RCW 4.24.115 is applicable to Consultant’s services provided under this Agreement.
k. Services provided by the Consultant under this Agreement will be performed in a manner
consistent with that degree of care and skill ordinarily exercised by members of the same
profession currently practicing under similar circumstances, in the same geographical
area and time period. Nothing in the Agreement is intended to create, nor shall it be
construed to create, a fiduciary duty owed by either party to the other.
l. City agrees that Consultant will not be held liable for the completeness, correctness,
readability, or compatibility of any electronic media submitted to City, after an acceptance
period of 30 days after delivery of the electronic files, because data stored on electronic
media can deteriorate undetected or can be modified without Consultant’s knowledge.
m. Consultant will not be liable for any damage to the field office premises or utilities
provided by City, unless caused by Consultant’s own negligence.
n. Regarding Article XIX. Protection of Confidential Information, of the LAG Agreement,
KBA will perform services under the following assumptions, and such assumptions are
assumed acceptable to the AGENCY and the STATE: The AGENCY and/or the STATE
will identify each and any item considered to be “State’s Confidential Information” as
“confidential”, as detailed below. Any information received by CONSULTANT that is not
so labeled, will be assumed by CONSULTANT to not be “State’s Confidential
Information”. CONSULTANT will return all items pre-identified as State’s Confidential
Information, to the AGENCY, and will not be required to take any other steps to protect
that information.
II. OPTIONAL SERVICES
All services not detailed above, are considered Optional Services, which, along with any other Extra Work
requested by the City, will be performed only when a mutually negotiated Supplement to this Agreement
is executed, specifying scope of services and budget.
Project Name:Arlington 67th Ave Month May-20 Jun-20 Jul-20
Client Project No.: TBD Days/Mo 20 22 22
KBA Project No.: B20024-01 Hr/Mo 160 176 176
Contract Type: Cost + Net Fee (on DSC only) Extra Work 12% 12% 12%
Date Prepared:dj Hr/Mo 179 197 197
Prepared by: Sam Schuyle
Salary Escalation 5%
KBA Labor Hours
Job Classification 2020
Rate
2021
Rate Total Hours 2020 Total May-20 Jun-20 Jul-20
K Adams (M4) Principal in Charge $93.36 $98.03 2 2 1 1 -
Sam Schyle (M2) Project Manage $75.24 $79.00 6 6 2 2 2
Jill Carte (A4) CA $39.48 $41.45 8 8 4 2 2
Micael Serrano (E4) RE/OE/Inspecto $46.00 $48.30 58 58 20 20 18
Vivian Collica (P3) Project Admin $35.20 $36.96 24 24 8 8 8
TBD Intern Inspecto $25.00 $26.25 128 128 43 43 42
Subtotal - KBA Labor Hours 226 226 78 76 72
Direct Expenses
Item Total Costs 2020 Total May-20 Jun-20 Jul-20
Vehicles @ $6/hour (plus tax) prorated, for partial month 1,231$ 1,231 417 417 397
Misc: Supplies, Equipment, Copies, Postage 1,076$ 1,076 388 388 300
Subtotal - Direct Expenses 2,307$ 2,307 805 805 697
Combined Costs
Job Classification 2020
Rate
2021
Rate Total DSC 2020 Total May-20 Jun-20 Jul-20
K Adams (M4) Principal in Charge $93.36 $98.03 187$ 187 93 93 -
Sam Schyle (M2) Project Manage $75.24 $79.00 451$ 451 150 150 150
Jill Carte (A4) CA $39.48 $41.45 316$ 316 158 79 79
Micael Serrano (E4) RE/OE/Inspecto $46.00 $48.30 2,668$ 2,668 920 920 828
Vivian Collica (P3) Project Admin $35.20 $36.96 845$ 845 282 282 282
TBD Intern Inspecto $25.00 $26.25 3,200$ 3,200 1,075 1,075 1,050
Direct Salary Costs 7,667$ 7,667 2,678 2,599 2,389
Overhead (Home) @ 1,599$ 1,599 674 541 385
Overhead (Field) @ 9,727$ 9,727 3,299 3,299 3,129
Subtotal (DSC + OH)18,993$ 18,993 6,651 6,439 5,903
Fee (on DSC only) @ 2,300$ 2,300 804 780 717
Subtotal (DSC + OH + Fee)21,293$ 21,293 7,454 7,219 6,620
Direct Expenses (No Markup)2,307$ 2,307 805 805 697
TOTAL ESTIMATED COSTS 23,600$ 23,600 8,259 8,024 7,317
Rounded to nearest whole dollar.
CONFIDENTIAL & PROPRIETARY TO KBA, INC.
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City of Arlington Council Agenda Bill Item: WS #7 Attachment G COUNCIL MEETING DATE: May 26, 2020 SUBJECT: FCS Group Cost of Service Update ATTACHMENTS: Proposal and Contact DEPARTMENT OF ORIGIN EMS; Dave Kraski, Fire Chief – 360-403-3607 EXPENDITURES REQUESTED: $20,000.00 BUDGET CATEGORY: EMS BUDGETED AMOUNT: Budget amendment LEGAL REVIEW: DESCRIPTION: EMS contracts with EMS partners outlines a fee study update in 2020 to re-establish 2021 and 2022 rates. This request will initiate the study update with the FCS group. HISTORY: Arlington Fire has provided EMS services to Fire Districts 19 (Silvana), 21 (Arlington Heights) and 25 (Oso) for decades. Beginning in 2019, the previous rate model was discontinued, and a cost for service model was established by the FCS Group. The current EMS contracts outline a fee study
review by the City Attorney.”
Firm Headquarters
Redmond Town Center
7525 166th Ave NE, Ste D-215
Established in 1988
Washington | 425.867.1802
Oregon | 503.841.6543
CITY OF ARLINGTON
FIRE DEPARTMENT EMS COST OF SERVICE UPDA TE
The following work tasks have been developed to update the City’s Fire Department EMS Cost of
Service Study. The study will analyze the cost of service of providing emergency medical services to
Fire Districts 19, 21, and 25. Our approach offers transparency in documentation, collaboration with
staff, and clear communication with the City management team and Council on any poli cy
considerations.
As defined in the task plan, we follow a structured method to arrive at our conclusions, which
enables us to perform the work in an orderly, efficient and results-oriented manner. Because of the
current COVID-19 social distancing restrictions, we will conduct our meetings and discussions
remotely with City staff using conference calls and other remote meeting methods as necessary.
TASK PLAN
TASK 1 | KICK-OFF MEETING AND BACKGROUND REVIEW
A project kick-off meeting will be scheduled bef ore the commencement of the project with the
consultant and City project team. This meeting will establish the goals and objectives of the overall
project and focus the efforts of the project team. The items covered at the meeting include review of
the scope of work, identify project objectives, expectations and deliverables, outline the project
schedule and key milestone review points and discuss appropriate lines of communication. We have
budgeted this meeting to be conducted via remote session. We will a lso compile and issue a data
request for information such as the 2019 actual and 2020 budgeted revenues and expenditures, the
2019 incident data, daily unit staffing, and any other documentation related to our previous cost of
services analysis.
TASK 2 | UPDATE THE COST OF SERVICE FRAMEWORK
Based on the kick-off meeting, we will update the cost of service framework and analytical model to
reflect any changes to the district agreements that have occurred since the previous work was
completed, such as accounting for District 24’s initiation of its own ALS emergency medical services
or changes in the Department’s organizational structure and responsibilities.
TASK 3 | ANALYZE THE CITY’S INCIDENT DATA
Using the 2019 incident data or additional years as desired by the City, we will analyze the data to
determine the number of incidents and the time spent responding to fire and EMS incidents within
City of Arlington Fire Department EMS Cost of Service Update
May 2020 page 2
www.fcsgroup.com
the City and outside of the City in the various fire districts that contract with the City for fire and/or
EMS services.
TASK 4 | IDENTIFY AND ANALYZE THE COST OF SERVICE
FOR FIRE AND EMERGENCY MEDICAL SERVICES
We will update the previous analysis using the budgeted 2020 revenues and expenditures related to
the City’s Fire Department. We will forecast both fire and EMS costs based on the adjusted 2019
incident data to account for the loss of District 24’s incidents. The cost of service analysis will
identify the EMS costs associated with serving each neighboring fire district. One issue that we will
also address is how the SAFER grant should be accounted for and how any subsequent matching or
General Fund contributions should be handled.
TASK 5 | PREPARE A SUMMARY PRESENTATION
Once we have completed the cost of service analysis, we will prepare and make a presentation for
City staff to review the assumptions and results and to make any adjustments as needed. If any
adjustments are needed, the analysis and presentation will be modified, and a final presentation will
be provided to the City. A formal report will not be prepared, but any assumptions, charts, and tables
will be provided to the City as presentation materials.
TASK 6 | PROJECT ADMINSITRATION
This task includes the various administrative activities that will take place during the study such as
the administrative support to do billing, conduct team meetings, and provide any progress reports to
the City. Other project administration costs might also include scheduling and coordination activities.
OPTIONAL TASK 7 | FORECAST AMBULANCE UTILITY
RATES
If the City decides to continue providing its own fire and EMS services rather than joining a regional
fire authority, full cost ambulance utility rates will also be forecasted for four years to 2020-2023 and
be compared to the current ambulance utility rates. The City will then decide separately if it wants to
increase its rate or increase any General Fund subsidy that will be used to offset any costs associated
with the ambulance utility. A scenario can be developed showing the rate impact of providing the
same or a different level of General Fund support to the ambulance utility.
OPTIONAL TASK 8 | MAKE A CITY COUNCIL
PRESENTATION
As an optional task, we can make a City Council presentation on the results of the study, if
necessary. We will prepare the same final presentation as that provided to the City staff.
City of Arlington Fire Department EMS Cost of Service Update
May 2020 page 3
www.fcsgroup.com
BUDGET
We have detailed each task to offer the City flexibility to select a combination of tasks to meet any
budget constraints and are willing to work with the City on prioritizing the various tasks based on its
current goals and objectives. Our normal billing practice is to bill based on the actual time and
materials not to exceed the total budget.
Technical Adv.Proj. Mgr.Sr. Analyst Admin.Total
Tasks Moy Chaw Bozett Support Labor Hours Budget
Effective Hourly Billing Rates:$220 $195 $145 $90
Task 1 – Kick-Off Meeting and Background Review 1 1 2 -4 $705
Task 2 – Update the Cost of Service Framework 1 2 8 -11 $1,770
Task 3 – Analyze the City’s Incident Data 2 4 8 -14 $2,380
Task 4 – Identify and Analyze the Cost of Service For Fire and EMS 8 2 36 -46 $7,370
Task 5 – Prepare a Summary Presentation 2 2 4 -8 $1,410
Task 6 – Project Administration 2 4 2 3 11 $1,780
Expenses $200
Project Budget 16 15 60 3 94 $15,615
Optional Task 7 – Forecast Ambulance Utility Rates 2 4 16 -22 $3,540
Optional Task 8 – Make City Council Presentation 2 2 --4 $830
Total Project Budget With Optional Tasks 20 21 76 3 120 19,985$
Consultant Hours
City of Arlington Council Agenda Bill Item: WS #8 Attachment H COUNCIL MEETING DATE: May 26, 2020 SUBJECT: Contract Renewal for Battalion Chief Services with the Marysville RFA ATTACHMENTS: Contract DEPARTMENT OF ORIGIN Fire; Dave Kraski, Chief – 360-403-3607 EXPENDITURES REQUESTED: Budgeted $12,000.00 Annually BUDGET CATEGORY: Fire BUDGETED AMOUNT: Up to $12,000.00 LEGAL REVIEW: DESCRIPTION: This request is for a renewal of services provided by the Marysville Regional Fire Authority for 24-hour Command and Control. Battalion #61 responds to Arlington to assist with larger scale incidents requiring a more complex and longer duration command presence. HISTORY: The original contract was initiated a year ago as a trial, and expires on June 30, 2020. The new contract is a mirror image with the exception of a slight increase in the hourly rate and duration. The new contract will continue through 2021. ALTERNATIVES: Deny and take no action. RECOMMENDED MOTION: Workshop; discussion only. At the June 1 Council meeting, the recommended motion will be, “I move to approve the renewal of the contract for Battalion Chief services with Marysville RFA, and authorize the Mayor to sign the agreement, subject to final review by the City Attorney”.
1
W/GW/2018-003/AGREEMENT FOR BATTALION CHIEF SERVICES.7.10.19.F
AGREEMENT FOR BATTALION CHIEF SERVICES
THIS AGREEMENT is entered into by and between CITY OF ARLINGTON, a
municipal corporation, hereinafter referred to as “City,” and the MARYSVILLE FIRE
DISTRICT, the combined fire departments of Snohomish County Fire Protection District No. 12
a Regional Fire Authority,and the City of Marysville, hereinafter referred to as “MFD.”
1. PURPOSE/ AUTHORITY. MFD maintains and operates a full-service fire and EMS
department. MFD command structure includes the utilization of Battalion Chiefs. City
has a need for Battalion Chief services and MFD has the ability, subject to the
limitations set forth herein, to supply the needed services to City. This Agreement sets
forth the terms and conditions under which the needed services will be provided.
Chapter 39.34 RCW the Interlocal Cooperation Act provides authority to enter into
such agreements and Chapter 10.93 RCW authorize the mutual aid of officers to
enforce traffic and criminal laws of the state throughout the territorial boundaries of the
State of Washington.
2. TERM. This Agreement shall be effective July 1, 202019 and shall terminate June
30,December 31, 20201. This Agreement may be renewed by mutual written
agreement of the parties.
3. BATTALION CHIEF SERVICES.
a. Dispatched Services. MFD shall furnish Battalion Chief services as requested by
the City within the geographical boundaries of City and within such other areas as
the City has agreed to provide mutual aid. Said services shall be rendered on the
same basis as such services are rendered within MFD, but the MFD assumes no
liability for failure to provide such services by reason of any circumstances
beyond its control. In the event of simultaneous emergency calls, whether within
or outside of City whereby the MFD on-duty Battalion Chief is taxed beyond his
or her ability to render services, or if in the sole discretion of MFD a Battalion
Chief is otherwise not available, MFD shall not be required to provide the
services referenced herein. This agreement shall not prevent City from
contracting with other agencies who are capable of providing Battalion Chief
services by mutual aid or otherwise, in the event MFD is unable to respond or
where response from another agency may be beneficial to the City.
b. Non-Dispatched Services. "Upon giving reasonable written notice to MFD, the
City may request additional Battalion Chief services for situations not involving
an emergency dispatch. MFD may provide either an on-duty Battalion Chief or
off-duty Battalion Chief for such situations. Examples of such situations may
2
W/GW/2018-003/AGREEMENT FOR BATTALION CHIEF SERVICES.7.10.19.F
include training, special events, meetings, post incident analysis, etc. If an on-
duty Battalion Chief is available without a need for backfill as determined as the
sole discretion of MFD, the rate per hour shall be $154.50150 for the remainder of
calendar year 2020 and $159.13 per hour for calendar year 2021, including travel
time from the MFD station to the City and back. If the Battalion Chief is off-
duty, or if Battalion Chief backfill is deemed necessary, the rate per hour shall be
$154.50150 for the remainder of calendar year 2020 and $159.13 per hour for
calendar year 2021, plus the additional cost to MFD in overtime above the
employee's normal hourly rate. The provision of services non-emergency
Battalion Chief services shall be in the discretion of MFD and on an as - available
basis."
4. EQUIPMENT AND PERSONNEL. In providing the services, it is the intent of the
parties that all equipment and supplies necessary for the Battalion Chief to provide
services shall be provided by MFD and included within the hourly rates set forth above.
5. PAYMENT FOR SERVICES. City agrees to pay the MFD for the services provided
under this Agreement on the following basis:
a. The fee for Battalion Chief services shall be $154.50 per hour for the remainder
of calendar year 2020150 and $159.13 per hour for calendar year 2021 with a
one hour minimum per dispatch. MFD will provide ninety (90) days’ written
notice of any changes in the established fee for service.
b. Time shall be calculated from the time of dispatch from MFD to the time of return
to duty to MFD.
c. For off duty non dispatched services $ 154.50150 per hour for the remainder of
calendar year 2020 and $159.13 for calendar year 2021 plus the additional cost to
MFD in overtime above the employee's normal hourly rate.
6. BILLING SERVICES. MFD shall provide City with an invoice on a quarterly basis.
Said invoice shall be payable within thirty (30) days of receipt by City.
7. REPORTS. MFD agrees to provide City with a copy of all records and reports
indicating the number and nature of Battalion Chief responses by the MFD within the
City that occur during the term of this Agreement, on not less than a quarterly basis.
8. ADMINISTRATION OF AGREEMENT. The MFD Fire Chief or his designee shall
provide for the principal administration necessary to supervise the services provided
under this Agreement. The written policies and procedures of MFD shall apply to the
on duty Battalion Chief when providing services to the City. The MFD shall provide
City with copies of all written policies and procedures and shall provide written
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W/GW/2018-003/AGREEMENT FOR BATTALION CHIEF SERVICES.7.10.19.F
notification of any material changes of such policies and procedures within seven (7)
calendar days of such changes.
9. AUTHORIZATION TO USE PERSONNEL; CONDITIONS.
a. The City and MFD each hereby authorize the utilization of the on-duty MFD
Battalion Chief for the performance of Battalion Chief services to the City under
the terms and conditions of thise Agreement.
b. Each party agrees that all MFD Battalion Chiefs will at all times remain the full-
time employee of MFD.
c. CITY agrees to compensate MFD for the use of Battalion CHIEF as set forth in
Section 5 of this agreement.
d. Each party agrees that while Battalion Chief services are being provided by MFD
to the City the Battalion Chief will be under the direct supervision of the MFD
Fire Chief or designee.
10. REVIEW AND EVALUATION OF SERVICES. Upon request by the City, MFD
shall periodically provide scheduled sessions with City Command staff, Chief or
designee(s) to review and evaluate the services provided under this Agreement.
11. CONDUCT AND DISCIPLINE.
a. While acting as Battalion Chief for the CITY the Battalion Chief shall familiarize
him/herself with the policies and procedures of CITY. Such policies and procedures shall
be applied to all City employees when the MFD Battalion Chief is providing services to
the City. MFD policies and procedures will apply to the MFD Battalion Chief.
b. If potential disciplinary action against a MFD Battalion Chief arises out of an incident
while providing services to the CITY, . the City may request that a Battalion Chief be
removed from service to the City. Only the MFD may take disciplinary action against a
Battalion Chief under this Agreement. Each party will cooperate fully in the
investigation of any disciplinary matter and while the CITY may recommend disciplinary
action to MFD, the CITY shall have no right to subject a MFD Battalion Chief to
disciplinary action.
12. INSURANCE. The MFD and the City each agree to maintain insurance coverage with
limits and coverages as provided through the Washington Cities Insurance Authority
and/or such other commercial carrier as the parties shall agree. City shall maintain
adequate insurance coverage acceptable to MFD for its own equipment and personnel
which shall include general liability, errors and omissions, and property damage for its
personnel and vehicles. Upon request, the City shall provide proof of such insurance to
MFD prior to commencement of this Agreement.
4
W/GW/2018-003/AGREEMENT FOR BATTALION CHIEF SERVICES.7.10.19.F
13. LIABILITY, INDEMNIFICATION AND DEFENSE OF THIRD-PARTY
CLAIMS.
a. The parties agree that ultimate financial liability for the errors and omissions of a
MFD Battalion Chief arising from performance of this Agreement shall belong to
the City.
b. HOLD HARMLESS. The CITY, who has requested services under this
Agreement agrees to save, hold harmless indemnify and defend MFD and its
officers, officials, employees and elected officials from any loss, claim or liability
arising from or out of the errors and omissions of MFD employees while
providing Battalion Chief services under this Agreement, subject to paragraph (c)
below.
c. NOTHING HEREIN SHALL REQUIRE OR BE INTERPRETED TO:
1. Waive any defense arising out of RCW Title 51.
2. Limit or restrict the ability of either party to exercise any right, defense or
remedy which a party to a lawsuit may have with respect to claims or third
parties, including, but not limited to, any good faith attempts to seek
dismissal or legal claims against a party by any proper means allowed
under the civil rules in either state or federal court.
3. Cover or require indemnification or payment of any judgment against any
individual or party for intentionally wrongful conduct outside the scope of
employment of any individual or for any judgment for punitive damages
against any individual or city. Payment of punitive damage awards, fines
or sanctions shall be the sole responsibility of the individual against whom
said judgment is rendered and/or his or her employer, should that
employer elect to make said payment voluntarily. This agreement does
not require indemnification of any punitive damage awards or for any
order imposing fines or sanctions.
14. MODIFICATION. This Agreement represents the entire agreement between the
parties. No change, termination or attempted waiver of any of the provisions of this
Agreement shall be binding on either of the parties unless executed in writing by
authorized representatives of each of the parties. The Agreement shall not be modified,
supplemented or otherwise affected by the course of dealing between the parties.
15. ASSIGNMENT. In the event the City of Marysville, Fire District 12 or Marysville
Fire District merges, consolidates or forms a Regional Fire Authority or other separate
entity, this Agreement may be assigned and transferred to the new entity by mutual
agreement of the City and MFD and with the acceptance in the sole discretion of MFD
upon the written acceptance of such assignment or transfer by the new entity. In the
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W/GW/2018-003/AGREEMENT FOR BATTALION CHIEF SERVICES.7.10.19.F
event such assignment or transfer is not accepted, this Agreement may be terminated
upon giving not less than thirty (30) days written notice.
16. PUBLIC RECORDS. MFD Each party will respond to public records requests
relating to records in the possession of MFD said party resulting from performance of
services by MFD under this Agreement. All other public records requests will be the
sole responsibility of City. City agrees to save, hold harmless indemnify and defend
MFD, its officers, agents, employees and elected officials from and against all costs,
claims, lawsuits and liability resulting from MFD’s response to public records requests
pursuant to this agreement.
17. NO THIRD-PARTY BENEFICIARIES. This Agreement is for the benefit of the
signatory Parties only and no other person or entity shall have any rights whatsoever
under this Agreement as a third-party beneficiary.
18. INTEGRATION. This Agreement constitutes the entire agreement and understanding
between the Cities concerning the subject manner herein and shall supersede all prior
agreements, oral or otherwise.
19. GOVERNING LAW AND VENUE; ATTORNEYS’ FEES. This Agreement shall
be governed by the laws of the State of Washington. The venue for any action arising
out of this Agreement shall be the Superior Court for Snohomish County, Washington.
The substantially prevailing party in any such action shall be entitled to an award of its
reasonable attorneys’ fees.
20. POSTING; RECORDING. This Agreement shall be effective upon posting on the
MFD or City of Arlington Website or recording with the Snohomish County Auditor’s
office pursuant to RCW 39.34.040.
21. SIGNATORY WARRANTY. Each signatory hereto warrants and represents that
he/she has been authorized to execute this Agreement by appropriate action of the
legislative body of his/her respective public entity.
22. EXECUTION IN COUNTERPARTS. This Agreement may be executed in separate
counterparts.
23. SEVERABILITY. Should any clause, phrase, sentence or paragraph of the Agreement
or its application to any party or circumstance be declared invalid or void by a court of
competent jurisdiction, the remaining provisions of this Agreement and/or their
application to other parties and circumstances, not declared invalid or void, shall
remain in full force and effect.
DATED this ______ day of ____________________, 202019.
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W/GW/2018-003/AGREEMENT FOR BATTALION CHIEF SERVICES.7.10.19.F
CITY OF ARLINGTON MARYSVILLE FIRE DISTRICT
By___________________________ By___________________________
Barbara Tolbert, Mayor Martin McFalls, Fire Chief
Approved as to Form: Approved as to Form:
By______________________________ By____________________________
Steven J. Peiffle, City Attorney Grant K. Weed
Attorney for Marysville Fire District
Attest: Attest:
By By
Wendy Van Der MeerscheErin Keator, City Clerk Secretary
to the Board
City of Arlington Council Agenda Bill Item: WS #9 Attachment I COUNCIL MEETING DATE: May 26, 2020 SUBJECT: Emergent Shared Employee Interlocal Agreement with Snohomish County Fire District #21 ATTACHMENTS: Interlocal Agreement DEPARTMENT OF ORIGIN Fire / EMS; Dave Kraski, Chief – 360-403-3607 EXPENDITURES REQUESTED: None BUDGET CATEGORY: N/A BUDGETED AMOUNT: None LEGAL REVIEW: DESCRIPTION: Snohomish County Fire District #21 (Arlington Heights) has requested Arlington enter into an agreement to share an employee in an emergent staffing situation. If this is activated, it would likely be Snohomish Fire #21 requesting assistance, not Arlington. HISTORY: Snohomish Fire #21 recently hired its first full-time firefighters (five), and they have concern that in the event of an unexpected injury, illness, resignation, death etc., they may have problems staffing the department. They have requested in that event, an employee from the other agency be utilized. All salary and employee benefits would be reimbursed by the requesting agency. ALTERNATIVES: Deny the request. RECOMMENDED MOTION: Workshop; discussion only. At the June 1 Council meeting, the recommended motion will be, “I move to approve the Interlocal Agreement with District #21 for Employee Backfill, and authorize the Mayor to sign it, subject to final review by the City Attorney.”
LOANED EMPLOYEE BACKFILL AGREEMENT - 1
INTERLOCAL AGREEMENT
BETWEEN
SNOHOMISH COUNTY FIRE PROTECTION DISTRICT #21
AND
CITY OF ARLINGTON
FOR
LOANED EMPLOYEE BACKFILL
THIS INTERLOCAL AGREEMENT FOR LOANED EMPLOYEE BACKFILL (the
“Agreement”) is made and entered into this 15th day of June, 2020, by and between
SNOHOMISH COUNTY FIRE PROTECTION DISTRICT #21, a Washington municipal
corporation (the “District”), and the CITY OF ARLINGTON, a Washington municipal corporation
(the “City”). The District and the City are referred to collectively as the “Parties” and individually
as “Party.”
I. RECITALS
WHEREAS, District and City are fire protection Parties which employ uniformed,
represented personnel;
WHEREAS, the purpose of this Agreement is to further advance intergovernmental
cooperation between the Parties to provide high quality, local fire, and emergency medical
services to their respective communities while limiting mandatory overtime callbacks for the
personnel of each agency;
WHEREAS, from time to time, each party may encounter a vacancy for a shift (“Shift
Vacancy”) which has been offered to that party’s personnel but which remains unfilled;
WHEREAS, in lieu of mandatorily calling back an employee to fill the Shift Vacancy, the
parties hereby desire to share employees in order to provide work opportunities to employees
who wish to voluntarily fill the Shift Vacancy;
WHEREAS, the labor groups for each of the agencies have reached Memoranda of
Understanding (“Personnel Sharing MOUs”) with their respective agencies in order to fulfill the
intent and purpose of this Agreement, copies of which are attached hereto as Exhibits C-1 and
C-2;
WHEREAS, the Parties are authorized, pursuant to Chapter 39.34 of the Revised Code
of Washington, to enter into Interlocal Agreements which allow the Parties to cooperate with
each other to provide high quality services to the public in the most efficient manner possible;
and
WHEREAS, each party desires to loan its personnel to the other in accordance with the
terms and conditions of this Agreement.
II. TERMS AND CONDITIONS
LOANED EMPLOYEE BACKFILL AGREEMENT - 2
NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, the parties agree as follows:
1. Term. This Agreement shall be effective July 15th, 2020, and shall continue in full force
and effect indefinitely until terminated by either party upon not less than thirty (30) days’ written
notice (herein the effective date of termination shall be referred to as the “Termination Date”).
1.1 The filling of any future Shift Vacancies following the Termination Date shall be
the sole responsibility of the party that has the Shift Vacancy.
2. Request to Fill Shift Vacancy. Whenever a party (the “Requesting Party”) has a Shift
Vacancy, the Requesting Party shall follow its procedures and its collective bargaining
agreement to offer such shift (the “Shift”) to its own personnel on an overtime basis. If the Shift
Vacancy is not voluntarily filled by the Requesting Party’s employees, then, in accordance with
the Personnel Sharing MOUs, the Requesting Party may contact the other party (the “Providing
Party”) for purposes of filling the Shift Vacancy. The Providing Party will, in accordance with the
terms of its collective bargaining agreement and the Personnel Sharing MOUs, offer the shift to
its personnel and will notify the Requesting Party of the name of the individual who will work the
Shift (the “Loaned Employee”). If no employee voluntarily elects to work the Shift, the Providing
Party shall promptly notify the Requesting Party.
2.1 Each party shall ensure that the Loaned Employee knows it is their responsibility
to timely notify the Providing Party and the Requesting Party if they are ill or otherwise unable to
work the Shift. Upon receiving such notice, the Providing Party shall attempt to provide another
Loaned Employee if time permits in advance of the Shift.
3. Right to Refuse Loaned Employee. Each party reserves the right for any
nondiscriminatory reason to refuse a Loaned Employee from filling Shifts for such party;
provided, however, that such right shall be effective only from the time that notice is provided to
the Providing Party. If the refused employee is scheduled to work any future Shifts at the time
such notice is issued, the Providing Party shall offer such Shifts to other employees.
4. Supervision of Employee. The Requesting Party is solely responsible for supervising
the performance of the Loaned Employee during the Shift, including supervision of both the
services provided by the Loaned Employee and the means by which the services are
accomplished.
4.1 The Requesting Party shall promptly notify Providing Party of any performance
deficiencies or misconduct which occurred on the Shift so that the Providing Party can take
appropriate action. All disciplinary action shall be the responsibility of the Providing Party.
5. Employee Consent. Any employee who desires to fill Shift Vacancies as provided
herein shall execute and provide to his/her employer the consent form attached hereto as
Exhibit “A” (“Employee Consent”). By obtaining such consent, it is the intent of the parties to
establish that both the Requesting Party and Providing Party are the employers for any Loaned
Employee for purposes of the Industrial Insurance Act in accordance with the holding of
Novenson v. Spokane Culvert & Fabricating Co., 91 Wn.2d 550, 553, 588 P.2d 1174, 1176
(1979).
LOANED EMPLOYEE BACKFILL AGREEMENT - 3
5.1 At any time hereunder, any employee who has provided an Employee Consent
may withdraw his or her consent by notifying his/her employer, and thereby withdraw
him/herself from being loaned to the Requesting Party pursuant to this Agreement.
6. Employee Benefits and Withholdings. The employer of a Loaned Employee shall be
solely responsible for the following:
a. Administration of payment of all salaries, wages, and other forms of
compensation to each Loaned Employee;
b. Compliance with all rules and regulations governing reporting, payment, and
withholding of federal and state taxes imposed with respect to each Loaned Employee,
including but not limited to:
i. Federal income tax withholding;
ii. State and local income tax withholding;
iii. Federal Insurance Contributions Act (FICA) and Medicare tax withholding,
as well as the employer component of FICA and Medicare tax;
iv. Federal Unemployment Tax Act (FUTA) obligations; and
v. Applicable state unemployment tax obligations.
c. Compliance with applicable workers' compensation laws applicable to each
Loaned Employee.
7. Invoice and Payment. Each party shall, by the 15th of each month, invoice the other
party for any Shifts worked by Loaned Employees during the prior month. Such invoice shall
identify the Loaned Employee, the date(s) of the Shift(s) worked, and the charges associated
therewith. The charges shall consist of the total hourly cost of compensation (TCC) for such
Loaned Employee multiplied by the number of hours worked during the prior month, plus all
taxes thereon.
7.1 Exhibit “B” identifies the components of TCC and method for calculating the TCC
for each employee who is eligible to work as a Loaned Employee.
7.1.1 Within ten (10) days of mutual execution of this Agreement, each party
shall provide the other with the current TCC for each employee who is eligible to serve as a
Loaned Employee. On January 1 and July 1 of each year, each party shall provide the other
party with updated TCC information for each employee who is eligible to serve as a Loaned
Employee.
7.1.2 The parties recognize that a Providing Party will be unable to timely
identify annual increases in TCC if such party’s collective bargaining agreement is not timely
settled or if such party is proceeding to interest arbitration. Such a party shall provide updated
TCC information within thirty (30) days after the new collective bargaining agreement is settled
or the issuance of the interest arbitration award. Further, if the new CBA or interest arbitration
award calls for retroactive pay to a prior date, such party shall issue a revised invoice to the
Requesting Party as soon as practical to reflect the increase in TCC established under the new
CBA or interest arbitration award for any Shifts worked during the retroactive pay period. It is
LOANED EMPLOYEE BACKFILL AGREEMENT - 4
expressly agreed that such revised invoice may be issued following the Termination Date if this
Agreement is terminated prior to the settling of the CBA or issuance of interest arbitration
award.
7.2 Payment of invoices shall be due within 45 days of the invoice date. Payments
received after this date are subject to interest at the rate of one and one-half percent (1.5%) per
month.
8. Defense and Indemnification. Each Requesting Party shall defend, indemnify, and
hold harmless the other party, its officers, directors, members, successors and assigns, from
and against any and all claims, penalties, demands, causes of action, damages, losses,
liabilities, costs, expenses, including attorneys’ fees, arising out of in connection with [C-CH1]the
services performed by a Loaned Employee under this Agreement. Provided, however, that this
defense and indemnification shall not apply to any claims or causes of action to the extent that
the damages were caused by the negligent or wrongful conduct of the Providing Party. In the
event of joint liability, this defense and indemnification shall only apply to the percentage fault of
the Requesting Party.
8.1 Each Providing Party shall defend and indemnify the other from any claims by a
Loaned Employee (including employment related claims) which do not arise out of this
Agreement.
9. Understanding of Agreement. Each party acknowledges that such party has read this
Agreement and understands its contents, that such party has had the opportunity to have this
Agreement reviewed by an attorney of such party’s choice, and that such party either has
consulted with an attorney or voluntarily has chosen not to consult with an attorney before
signing this Agreement.
10. Survivability. All covenants, promises, provisions, and performances of this Agreement
which are not fully performed as of the date of termination shall survive termination of this
Agreement as binding obligations.
11. Notices. All notices, demands, requests, consents, and approvals which may, or are
required to be given by any party to any other party hereunder, shall be in writing and shall be
deemed to have been duly given if delivered personally, sent by a nationally recognized
overnight delivery service, or if deposited in the United States mail and sent by registered or
certified mail, return receipt requested, postage prepaid to:
The District: Snohomish County Fire Protection District #21
ATTN: Fire Chief
12131 228th Street Northeast
Arlington, WA 98223
The City: The City of Arlington
ATTN: Fire Chief
6231 188th Street Northeast
Arlington, WA 98223
LOANED EMPLOYEE BACKFILL AGREEMENT - 5
or to such other address as either party hereto may from time-to-time designate in writing and
deliver in a like manner. All notices shall be deemed complete upon actual receipt or refusal to
accept delivery. Facsimile transmission of any signed original document, and retransmission of
any signed facsimile transmission shall be the same as delivery of an original document.
12. Amendment. No modification, termination, or amendment of this Agreement may be
made except by written agreement signed by both parties, except as provided herein.
13. Neutral Authorship. Each party represents and warrants that it has retained legal
counsel to assist them in the preparation of this Agreement and the exhibit attached hereto.
Each of the provisions of this Agreement and the exhibit attached hereto have been reviewed
and negotiated, and represents the combined work product of the parties hereto. No
presumption or other rules of construction which would interpret the provisions of this
Agreement in favor of or against the party preparing the same shall be applicable in connection
with the construction or interpretation of any of the provisions of this Agreement.
14. No Waiver. No failure by either party to insist upon the strict performance of any
covenant, duty, agreement, or condition of this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute a waiver of any such breach or any other
covenant, agreement, term or condition. Either party hereto, by notice, and only by notice as
provided herein may, but shall be under no obligation to, waive any of its rights or any
conditions to its obligations hereunder, or any duty, obligation or covenant of the other party
hereto. No waiver shall affect or alter this Agreement, and each and every covenant,
agreement, term, and condition of this Agreement shall continue in full force and effect with
respect to any other then existing or subsequent breach thereof.
15. Captions. The captions of this Agreement are for convenience and reference only and
in no way define, limit, or describe the scope or intent of this Agreement.
16. Severability. In case any one or more of the provisions contained in this Agreement
shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this
Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never
been contained herein.
17. Counterparts. This Agreement may be executed in any number of counterparts and
each such executed counterpart shall be deemed to be an original instrument, but all such
executed counterparts together shall constitute one and the same instrument. Any signature
page delivered by facsimile or electronic image transmission shall be binding to the same extent
as an original signature page. Any party that delivers a signature page by facsimile or electronic
image transmission shall deliver an original counterpart to any other party that requests such
original counterpart.
18. Dispute Resolution. The parties will first submit any dispute to mediation as a
condition precedent to litigation. Jurisdiction and venue for this Agreement shall lie exclusively
in the Superior Court of Pierce [C-CH2]County, Washington. Each party expressly waives the
right to a trial by jury.
LOANED EMPLOYEE BACKFILL AGREEMENT - 6
19. Entire Agreement. The entire agreement between the parties is contained in this
Agreement, and this Agreement supersedes all of the parties’ previous understandings and
agreements, written or oral, with respect to this transaction. This Agreement may only be
amended by a written modification signed by both parties.
IN WITNESS WHEREOF, the parties represent and warrant that they have read and
understand all the terms and conditions of this Agreement and have executed this Agreement or
have caused this Agreement to be executed by their duly authorized respective officers, all as of
the date first written above.
SNOHOMISH COUNTY FIRE PROTECTION
DISTRICT #21
By: ____________________________
Chad Schmidt, Fire Chief
THE CITY OF ARLINGTON
By:
Barb Tolbert, Mayor
LOANED EMPLOYEE BACKFILL AGREEMENT - 7
EXHIBIT “A”
[CONSENT TO LOANED EMPLOYEE AGREEMENT]
I, _________________________, am an employee of CITY OF ARLINGTON (“City”). I
understand that SNOHOMISH COUNTY FIRE DISTRICT 21 (“DISTRICT”) has requested that
City provide an employee to DISTRICT to fill vacant firefighter shifts (“Shifts”) on an as-needed
basis pursuant to an Interlocal Agreement dated June 15th, 2020 (the “Loaned Employee
Agreement”).
In consideration for the wages and benefits that I will receive from City as a Loaned
Employee to District, I agree to the following:
1. I consent and agree to perform services for District as required by District (the
“Services”) in accordance with the Loaned Employee Agreement.
2. I understand that District will be supervising and directing my performance of the
Services while working on a Shift but that I will be deemed to be an employee of both
City and District for purposes of the Industrial Insurance Act, RCW 52 during that time.
3. I understand that for the Services I provide to District, I will receive the same
compensation and benefits I am receiving for my work for City. I further understand that
I will receive my compensation and benefits from City and not from District.
Dated this ____ day of ____________________, 202___.
(Signature)
(Print Name)
LOANED EMPLOYEE BACKFILL AGREEMENT - 8
[CONSENT TO LOANED EMPLOYEE AGREEMENT]
I, _________________________, am an employee of SNOHOMISH COUNTY FIRE
DISTRICT 21 (“District”). I understand that CITY OF ARLINGTON (“City”) has requested that
District provide an employee to City to fill vacant firefighter shifts (“Shifts”) on an as needed
basis pursuant to an Interlocal Agreement dated June 15th, 2020 (the “Loaned Employee
Agreement”).
In consideration for the wages and benefits that I will receive from District as a Loaned
Employee to City, I agree to the following:
1. I consent and agree to perform services for City as required by City (the “Services”)
in accordance with the Loaned Employee Agreement.
2. I understand that City will be supervising and directing my performance of the
Services while working on a Shift but that I will be deemed to be an employee of both
City and District for purposes of the Industrial Insurance Act, RCW 52 during that
time.
3. I understand that for the Services I provide to City, I will receive the same
compensation and benefits I am receiving for my work for District. I further
understand that I will receive my compensation and benefits from District and not
from City.
Dated this ____ day of ____________________, 202 .
(Signature)
(Print Name)
LOANED EMPLOYEE BACKFILL AGREEMENT - 9
EXHIBIT “B”
[TCC]
LOANED EMPLOYEE BACKFILL AGREEMENT - 10
EXHIBIT “C-1”
[DISTRICT MOU]
LOANED EMPLOYEE BACKFILL AGREEMENT - 11
EXHIBIT “C-2”
[CITY MOU]
City of Arlington Council Agenda Bill Item: WS #10 Attachment J COUNCIL MEETING DATE: May 26, 2020 SUBJECT: Ordinance Authorizing the Issuance of Long Term General Obligation Bonds for the Construction of a New Fire Station ATTACHMENTS: Bond Ordinance DEPARTMENT OF ORIGIN Finance; Kristin Garcia – Finance Director 360-403-3431 EXPENDITURES REQUESTED: $5,500,000 BUDGET CATEGORY: General Fund BUDGETED AMOUNT: $0 – this will be an amendment LEGAL REVIEW: DESCRIPTION: The city is the design phase for construction of a new fire station. The design costs are being paid from accumulated capital reserves that were set aside for this purpose. The construction costs will be paid from the issuance of long term general obligation bonds. City council must adopt an ordinance authorizing the issuance of bonds before the city can have access to the funds. Here are the key points of the Ordinance;
•The maximum dollar amount authorized is $5,500,000.
•Funds must be used for the construction of a fire station and any costs associated with issuanceof the bonds.
•The bonds will be issued by Sterling Bank.
•The interest rate on the bonds is 2.35%, is fixed for the life of the bonds and is locked until7/1/2020. If the bonds close after 7/1/2020 the rate is subject to change.
•The maximum interest rate authorized in the Ordinance is 2.835%, the interest rate offered bySterling Bank is lower than this amount.
•The bonds mature 12/31/2040. The expected annual principal and interest payment is$343,000.
•There is not a draw down feature in the Ordinance, this term was removed after review by thebank’s legal counsel. Sterling Bank’s proposal is still the most economical even without thedrawn down provision.
•The Ordinance authorizes the finance director and/or city administrator to finalize the sale ofthe bonds (and sign closing documents) within the parameters set forth in the Ordinance.
City of Arlington Council Agenda Bill Item: WS #9 Attachment I
FG:53668676.4
CITY OF ARLINGTON, WASHINGTON
ORDINANCE NO. ______
AN ORDINANCE of the City of Arlington, Washington, relating to
contracting indebtedness; providing for the issuance, sale and delivery of a not to
exceed $5,500,000 aggregate principal amount limited tax general obligation bond
to provide funds to fund a new fire station and to pay the costs of issuance and sale
of the bond; fixing or setting parameters with respect to certain terms and
covenants of the bond; appointing the City’s designated representative to approve
the final terms of the sale of the bond; and providing for other related matters.
Passed June 1, 2020
This document prepared by:
Foster Garvey P.C.
1111 Third Avenue, Suite 3000
Seattle, Washington 98101
(206) 447-4400
-i-
51351725.7
TABLE OF CONTENTS*
Page
Section 1. Definitions............................................................................................................... 1
Section 2. Findings and Determinations .................................................................................. 2
Section 3. Authorization of the Bond ...................................................................................... 3
Section 4. Description of the Bond; Appointment of Designated Representative ................... 3
Section 5. Bond Registrar; Registration and Transfer of the Bond ......................................... 4
Section 6. Form and Execution of the Bond ............................................................................ 5
Section 7. Payment of the Bond ............................................................................................... 5
Section 8. Funds and Accounts; Deposit of Proceeds.............................................................. 5
Section 9. Prepayment ............................................................................................................. 6
Section 10. Failure To Pay the Bond ......................................................................................... 6
Section 11. Pledge of Taxes ....................................................................................................... 6
Section 12. Tax Covenants; Designation of the Bond as a “Qualified Tax Exempt
Obligation” .............................................................................................................. 6
Section 13. Refunding or Defeasance of the Bond .................................................................... 7
Section 14. Sale and Delivery of the Bond ................................................................................ 8
Section 15. Reporting Requirements ......................................................................................... 8
Section 16. Supplemental and Amendatory Ordinances............................................................ 9
Section 17. General Authorization and Ratification .................................................................. 9
Section 18. Severability ............................................................................................................. 9
Section 19. Effective Date of Ordinance ................................................................................... 9
*The cover page, table of contents and section headings of this ordinance are for convenience of reference only, and
shall not be used to resolve any question of interpretation of this ordinance.
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CITY OF ARLINGTON, WASHINGTON
ORDINANCE NO. _______
AN ORDINANCE of the City of Arlington, Washington, relating to
contracting indebtedness; providing for the issuance, sale and delivery of a not to
exceed $5,500,000 aggregate principal amount limited tax general obligation bond
to provide funds to fund a new fire station and to pay the costs of issuance and sale
of the bond; fixing or setting parameters with respect to certain terms and
covenants of the bond; appointing the City’s designated representative to approve
the final terms of the sale of the bond; and providing for other related matters.
THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following capitalized terms shall
have the following meanings:
(a) “Beneficial Owner” means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(b) “Bond” means the bond issued pursuant to and for the purposes provided in this
ordinance.
(c) “Bond Counsel” means the firm of Foster Garvey P.C., its successor, or any other
attorney or firm of attorneys selected by the City with a nationally recognized standing as bond
counsel in the field of municipal finance.
(d) “Bond Account” means the Limited Tax General Obligation Bond Account, 2020,
of the City created for the payment of the principal of, redemption premium, if any, and interest
on the Bond.
(e) “Bond Register” means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of the Bond.
(f) “Bond Registrar” means the City’s Finance Director or any successor bond registrar
selected for the Bond.
(g) “City” means the City of Arlington, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(h) “City Council” means the legislative authority of the City, as duly and regularly
constituted from time to time.
(i) “Code” means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
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(j) “Designated Representative” means the officer of the City appointed in Section 4
of this ordinance to serve as the City’s designated representative in accordance with RCW
39.46.040(2).
(k) “Final Terms” means the terms and conditions for the sale of the Bond including
the amount, date or dates, denominations, interest rate or rates (or mechanism for determining
interest rate or rates), payment dates, final maturity, prepayment terms, price, and other terms or
covenants.
(l) “Government Obligations” has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(m) “Issue Date” means, with respect to the Bond, the date of initial issuance and
delivery of the Bond to the Lender in exchange for the purchase price of the Bond.
(n) “Lender” means Sterling National Bank, or the corporation, firm, association,
partnership, trust, bank, financial institution or other legal entity or group of entities selected by
the Designated Representative to serve as lender in a private placement.
(o) “Owner” means, without distinction, the Registered Owner and the Beneficial
Owner.
(p) “Project” means financing a new fire station and other capital purposes, as deemed
necessary and advisable by the City. Incidental costs incurred in connection with carrying out and
accomplishing the Project, consistent with RCW 39.46.070, may be included as costs of the
Project. The Project includes acquisition, construction and installation of all necessary furniture,
equipment, apparatus, accessories, fixtures and appurtenances.
(q) “Project Account” means the fund or account designated or created by the Finance
Director for the purpose of carrying out the Project.
(r) “Registered Owner” means, with respect to a Bond, the person in whose name that
Bond is registered on the Bond Register.
(s) “State” means the State of Washington.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Authority and Description of Project. The City is in need of a new fire station. The
total expected cost of the Project is approximately $5,500,000, which is expected to be made up
of proceeds of the Bond, and other available money of the City. The City Council therefore finds
that it is in the best interests of the City to carry out the Project.
(b) Debt Capacity. The maximum amount of indebtedness authorized by this
ordinance is $5,500,000. Based on the following facts, this amount is to be issued within the
amount permitted to be issued by the City for general municipal purposes without a vote:
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(1) The assessed valuation of the taxable property within the City as ascertained
by the last preceding assessment for City purposes for collection in the
calendar year 2020 is $3,007,053,360.
(2) As of April 1, 2020, the City had limited tax general obligation
indebtedness, consisting of bonds and notes outstanding in the principal
amount of $13,370,000, which is incurred within the limit of up to 1½% of
the value of the taxable property within the City permitted for general
municipal purposes without a vote.
(3) As of April 1, 2020, the City had no unlimited tax general obligation
indebtedness.
(c) The Bond. For the purpose of providing the funds necessary to carry out the Project
and to pay the costs of issuance and sale of the Bond, the City Council finds that the adoption of
this ordinance is a necessary and routine matter and is in the best interests of the City and its
taxpayers to issue and sell the Bond to the Lender, pursuant to the terms set forth in a certificate
of the Designated Representative consistent with this ordinance.
Section 3. Authorization of the Bond. The City is authorized to borrow money on the
credit of the City and issue a negotiable limited tax general obligation bond evidencing
indebtedness in aggregate principal amount not to exceed $5,500,000 to provide funds necessary
to carry out the Project, and to pay the costs of issuance and sale of the Bond. The proceeds of the
Bond allocated to paying the cost of the Project shall be deposited as set forth in Section 8 of this
ordinance and shall be used to carry out the Project, or a portion of the Project, in such order of
time as the City determines is advisable and practicable.
Section 4. Description of the Bond; Appointment of Designated Representative. The
Finance Director, or the City Administrator in the absence of the Finance Director, is appointed as
the Designated Representative of the City and is authorized and directed to conduct the sale of the
Bond in the manner and upon the terms deemed most advantageous to the City, and to approve the
Final Terms of the Bond, with such additional terms and covenants as the Designated
Representative deems advisable, within the following parameters:
(a) The Bond shall be issued as a single, fully registered bond in the amount of not to
exceed $5,500,000.
(b) The Bond shall bear interest at a fixed rate per annum (computed on the basis of a
360-day year of twelve 30-day months) from the Issue Date or from the most recent date for which
interest has been paid or duly provided for, whichever is later. One or more rates of interest may
be fixed for the Bond. No rate of interest for the Bond may exceed 2.835%, other than an
adjustment that may occur upon a determination of taxability.
(c) Interest shall be payable at the rates and on such dates as are acceptable to the
Designated Representative. Principal payments shall commence on a payment date acceptable to
the Designated Representative and must be payable at maturity or in installments on such dates as
are acceptable to the Designated Representative.
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(d) The purchase price for the Bond may be in an amount as is acceptable to the
Designated Representative.
(e) The Bond may be subject to prepayment prior to its maturity date, as described in
Section 9, or upon such terms as acceptable to the Designated Representative.
(f) The Bond shall be dated as of the date of its delivery, which date and time for the
issuance and delivery of the Bond is not later than December 31, 2020.
(g) The Bond shall mature no later than December 31, 2040.
In addition, the Bond may not be issued if it would cause the indebtedness of the City to
exceed the City’s legal debt capacity on the Issue Date. The Designated Representative may accept
such additional terms, conditions and covenants as she or he may determine are in the best interests
of the City, consistent with this ordinance.
In determining the final principal amount, date of the Bond, interest rates, payment dates,
redemption provisions, and maturity date for the Bond, the Designated Representative, in
consultation with other City officials and staff and advisors, shall take into account those factors
that, in her or his judgment, will result in the lowest true interest cost on the Bond to its maturity,
including, but not limited to current financial market conditions and current interest rates for
obligations comparable to the Bond.
Section 5. Bond Registrar; Registration and Transfer of the Bond.
(a) Registration of the Bond. The Bond shall be issued only in registered form as to
both principal and interest and the ownership of the Bond shall be recorded on the Bond Register.
(b) Bond Registrar; Duties. The City Finance Director is appointed as initial Bond
Registrar. The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration
and transfer of the Bond, which shall be open to inspection by the City at all times. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver the Bond if transferred or
exchanged in accordance with the provisions of the Bond and this ordinance, to serve as the City’s
paying agent for the Bond and to carry out all of the Bond Registrar’s powers and duties under this
ordinance. The Bond Registrar shall be responsible for its representations contained in the Bond
Registrar’s Certificate of Authentication on the Bond. The Bond Registrar may become the Owner
with the same rights it would have if it were not the Bond Registrar and, to the extent permitted
by law, may act as depository for and permit any of its officers or directors to act as members of,
or in any other capacity with respect to, any committee formed to protect the rights of the Owner.
(c) Bond Register; Transfer of Bond. The Bond Register shall contain the name and
mailing address of the Owner and the principal amount and number of the Bond held by the Owner.
The Bond may be transferred only if endorsed in the manner provided thereon and surrendered to
the Bond Registrar. Any exchange or transfer shall be without cost to the Owner or transferee.
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Section 6. Form and Execution of the Bond.
(a) Form of the Bond; Signatures and Seal. The Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. The Bond shall be signed by the
Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and
the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If
any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the
City authorized to sign bonds before the Bond bearing her or his manual or facsimile signature is
authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be
as binding on the City as though that person had continued to be an officer of the City authorized
to sign bonds. The Bond also may be signed on behalf of the City by any person who, on the
actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although she
or he did not hold the required office on its Issue Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: “Certificate of
Authentication. This Bond is one of the fully registered City of Arlington, Washington, Limited
Tax General Obligation Bond, 2020, described in the Bond Ordinance.” The authorized signing
of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has
been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance.
Section 7. Payment of the Bond. Principal of, redemption premium, if any, and
interest on the Bond shall be payable in lawful money of the United States of America. Principal
of, redemption premium, if any, and interest on the Bond is payable by electronic transfer on the
interest payment date, or by check or draft of the Bond Registrar mailed on the interest payment
date to the Owner at the address appearing on the Bond Register on the Record Date. The City
shall be required to make electronic transfers pursuant to a request by an Owner in writing received
on or prior to the Record Date, which transfers shall be made at the expense of the City. The final
payment of principal of the Bond is payable upon presentation and surrender of the Bond by the
Owner to the Bond Registrar, and the Owner shall have no obligation to surrender the Bond as a
condition to the payment of any installment of principal other than the final installment. The Bond
is not subject to acceleration under any circumstances.
Section 8. Funds and Accounts; Deposit of Proceeds.
(a) Bond Account. The Bond Account is created as a special account of the City for
the sole purpose of paying principal of, redemption premium, if any, and interest on the Bond.
Bond proceeds in excess of the amounts needed to pay the costs of the Project and the costs of
issuance, if any, shall be deposited into the Bond Account. All amounts allocated to the payment
of the principal of, redemption premium, if any, and interest on the Bond shall be deposited in the
Bond Account as necessary for the timely payment of amounts due with respect to the Bond. The
principal of, redemption premium, if any, and interest on the Bond shall be paid out of the Bond
Account. Until needed for that purpose, the City may invest money in the Bond Account
temporarily in any legal investment, and the investment earnings shall be retained in the Bond
Account and used for the purposes of that account.
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(b) Project Account. The Project Account has been previously created as an account
of the City for the purpose of paying the costs of the Project. Proceeds received from the sale and
delivery of the Bond shall be deposited into the Project Account and used to pay the costs of the
Project and costs of issuance of the Bond. Until needed to pay such costs, the City may invest
those proceeds temporarily in any legal investment, and the investment earnings shall be retained
in the Project Account and used for the purposes of that account, except that earnings subject to a
federal tax or rebate requirement (if applicable) may be withdrawn from the Project Account and
used for those tax or rebate purposes.
Section 9. Prepayment. The City reserves the right to prepay principal of the Bond in
advance of its maturity date, in whole or in part, at any time, with a prepayment penalty as
described in the following table.
The City will notify the Bank at least 30 days in advance of its intent to prepay. Any partial
prepayment of the Bond shall be applied in inverse order of principal installments coming due.
Section 10. Failure To Pay the Bond. If the principal of the Bond is not paid when the
Bond is properly presented at its maturity or date fixed for prepayment, the City shall be obligated
to pay interest on the Bond at the same rate provided in the Bond from and after its maturity or
date fixed for prepayment until the Bond, both principal and interest, is paid in full or until
sufficient money for its payment in full is on deposit in the Bond Account, or in a trust account
established to refund or defease the Bond, and the Bond has been called for payment by giving
notice of that call to the Registered Owner.
Section 11. Pledge of Taxes. The Bond constitutes a general indebtedness of the City
and is payable from tax revenues of the City and such other money as is lawfully available and
pledged by the City for the payment of principal of, redemption premium, if any, and interest on
the Bond. For as long as the Bond is outstanding, the City irrevocably pledges that it shall, in the
manner provided by law within the constitutional and statutory limitations provided by law without
the assent of the voters, include in its annual property tax levy amounts sufficient, together with
other money that is lawfully available, to pay principal of, redemption premium, if any, and interest
on the Bond as the same become due. The full faith, credit and resources of the City are pledged
irrevocably for the prompt payment of the principal of, redemption premium, if any, and interest
on the Bond and such pledge shall be enforceable in mandamus against the City.
Section 12. Tax Covenants; Designation of the Bond as a “Qualified Tax Exempt
Obligation.”
(a) Preservation of Tax Exemption for Interest on the Bond. The City covenants that
it will take all actions necessary to prevent interest on the Bond from being included in gross
income for federal income tax purposes, and it will neither take any action nor make or permit any
use of proceeds of the Bond or other funds of the City treated as proceeds of the Bond that will
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cause interest on the Bond to be included in gross income for federal income tax purposes. The
City also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of
the Code are applicable to the Bond, take all actions necessary to comply (or to be treated as having
complied) with those requirements in connection with the Bond. If the Bond is determined to be
taxable, such event of taxability shall immediately increase the interest rate on the Bond.
(b) Post-Issuance Compliance. The Finance Director is authorized and directed to
review and update the City’s written procedures to facilitate compliance by the City with the
covenants in this ordinance and the applicable requirements of the Code that must be satisfied after
the Issue Date to prevent interest on the Bond from being included in gross income for federal tax
purposes.
(c) Designation of the Bond as a “Qualified Tax-Exempt Obligation.” The Bond may
be designated as “qualified tax-exempt obligations” for the purposes of Section 265(b)(3) of the
Code, if the following conditions are met:
(1) the Bond does not constitute a “private activity bond” within the meaning
of Section 141 of the Code;
(2) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds and other obligations not required to be included in
such calculation) that the City and any entity subordinate to the City
(including any entity that the City controls, that derives its authority to issue
tax-exempt obligations from the City, or that issues tax-exempt obligations
on behalf of the City) will issue during the calendar year in which the Bond
is issued will not exceed $10,000,000; and
(3) the amount of tax-exempt obligations, including the Bond, designated by
the City as “qualified tax-exempt obligations” for the purposes of
Section 265(b)(3) of the Code during the calendar year in which the Bond
is issued does not exceed $10,000,000.
Section 13. Refunding or Defeasance of the Bond. The City may issue refunding bonds
pursuant to State law or use money available from any other lawful source to carry out a refunding
or defeasance plan, which may include (a) paying when due the principal of, redemption premium,
if any, and interest on any or all of the Bond (the “defeased Bond”); (b) redeeming the defeased
Bond prior to its maturity; and (c) paying the costs of the refunding or defeasance. If the City sets
aside in a special trust fund or escrow account irrevocably pledged to that redemption or
defeasance (the “trust account”), money and/or Government Obligations maturing at a time or
times and bearing interest in amounts sufficient to redeem, refund or defease the defeased Bond in
accordance with its terms, then all right and interest of the Owner of the defeased Bond in the
covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased
Bond shall cease and become void. Thereafter, the Owner of the defeased Bond shall have the
right to receive payment of the principal of, redemption premium, if any, and interest on the
defeased Bond solely from the trust account and the defeased Bond shall be deemed no longer
outstanding. In that event, the City may apply money remaining in any fund or account (other
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than the trust account) established for the payment or redemption of the defeased Bond to any
lawful purpose.
Unless otherwise specified by the City in a refunding or defeasance plan, notice of
refunding or defeasance shall be given, and the amount of the Bond for any partial refunding or
defeasance shall be conducted, in the manner prescribed in this ordinance for the prepayment of
Bond.
Section 14. Sale and Delivery of the Bond. The Designated Representative is
authorized to accept the purchase offer of the Lender, based on the assessment of the Designated
Representative of market conditions, in consultation with appropriate City officials and staff, Bond
Counsel and other advisors. In accepting the Final Terms, the Designated Representative shall
take into account those factors that, in the judgment of the Designated Representative, may be
expected to result in the lowest true interest cost to the City. A certificate of the Designated
Representative shall set forth the Final Terms, and the terms provided therein shall be consistent
with the terms of this ordinance. The City is authorized to pay the fees and expenses of the Lender
and its counsel set forth in the purchase offer. The Bond will be prepared at City expense and will
be delivered to the Lender in accordance with the purchase offer, together with the approving legal
opinion of Bond Counsel regarding the Bond, and such other agreements, documents and
instruments as the Lender may reasonably require in connection with its purchase of the Bond.
Section 15. Reporting Requirements. While the Bond is outstanding, the City shall
submit to the Registered Owner of the Bond (a) current audited financial statements in reasonable
detail, with supporting schedules (the “Audit”) as soon as practicable after the City’s acceptance
thereof and in any case within 360 days after the end of each fiscal year, which may be in electronic
.PDF format. In the event the Audit is filed on the MSRB’s “EMMA” website, to satisfy this
requirement the City may email a link to the posted Audit to the Registered Owner within such
360-day period. So long as the Lender is the Registered Owner of the Bond, the electronic audit
or EMMA link may be sent to the following email address (or such other address as the Lender
supplies to the City in writing): Public_Finance_Servicing@snbcloud.onmicrosoft.com, and (b) at
the request of the Registered Owner of the Bond, the City’s annual budget as submitted or
approved. The City further agrees that it will permit the Registered Owner or its agents and
representatives to inspect the City’s books and records and make extracts therefrom at its own
expense during regular business hours and in a manner which will not disrupt the normal business
routine of the City. The City shall furnish to the Registered Owner such other financial information
as it may reasonably request. In the event that the Audit is not available within 360 days of fiscal
year end, the City will furnish unaudited financial statements to the Registered Owner in the
manner described in this paragraph within such period, and will then supply the Audit immediately
upon the availability thereof.
In connection with the City’s compliance with any continuing disclosure undertakings
(each, a “Continuing Disclosure Agreement”) entered into by the City on and after February 27,
2019, pursuant to SEC Rule 15c2-12 promulgated pursuant to the Securities and Exchange Act of
1934, as amended (the “Rule”), the Lender acknowledges that the City may be required to file with
the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system, or its
successor (“EMMA”), notice that the City has incurred obligations hereunder and notice of certain
subsequent events reflecting financial difficulties in connection with the Bond. The City agrees
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that it shall not file or submit, or permit to be filed or submitted, with EMMA any documentation
that includes the following unredacted sensitive or confidential information about the Lender or
its affiliates: address and account information of the Lender or its affiliate, e-mail addresses,
telephone numbers, fax numbers, names and signatures of officers, employees and signatories of
the Lender or its affiliates, unless otherwise required for compliance with the Rule or otherwise
required by law. The City acknowledges that the Lender is not responsible for the District’s
compliance or noncompliance with the Rule or any Continuing Disclosure Agreement. Such
information, however, may be public records under Washington law and subject to disclosure.
Section 16. Supplemental and Amendatory Ordinances. The City may supplement or
amend this ordinance for any one or more of the following purposes without the consent of any
Owner of the Bond:
(a) To add covenants and agreements that do not materially adversely affect the
interests of Owner, or to surrender any right or power reserved to or conferred upon the City.
(b) To cure any ambiguities, or to cure, correct or supplement any defective provision
contained in this ordinance in a manner that does not materially adversely affect the interest of the
Beneficial Owner of the Bond.
Section 17. General Authorization and Ratification. The Mayor, City Administrator,
Finance Director, City Clerk and other appropriate officers of the City are severally authorized to
take such actions and to execute such documents as in their judgment may be necessary or desirable
to carry out the transactions contemplated in connection with this ordinance, and to do everything
necessary for the prompt delivery of the Bond to the Lender thereof and for the proper application,
use and investment of the proceeds of the Bond. All actions taken prior to the effective date of
this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with
the terms of this ordinance are ratified and confirmed in all respects.
Section 18. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal
periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any
person or circumstance, such offending provision shall, if feasible, be deemed to be modified to
be within the limits of enforceability or validity. However, if the offending provision cannot be
so modified, it shall be null and void with respect to the particular person or circumstance, and all
other provisions of this ordinance in all other respects, and the offending provision with respect to
all other persons and all other circumstances, shall remain valid and enforceable.
Section 19. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Arlington,
Washington, at an open public meeting thereof, this 1st day of June, 2020.
Mayor
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ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
51351725.7
CERTIFICATION
I, the undersigned, City Clerk of the City of Arlington, Washington (the “City”), hereby
certify as follows:
1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held
at the regular meeting place thereof on June 1, 2020, as that ordinance appears on the minute book
of the City.
2. That in accordance with Proclamation 20-28 made by the Governor of the State of
Washington on March 24, 2020, as extended by Proclamations 20-28.1 and 20-28.2 and acts of
the legislative leadership of the State of Washington, (a) such meeting was not conducted in
person, (b) one or more options were provided for the public to attend the such meeting remotely,
including by telephone access, which mean(s) of access provided the ability for all persons
attending the meeting remotely to hear each other at the same time, and (c) passage of the
Ordinance is necessary and routine action of the City Council of the City; and
3. The Ordinance will be in full force and effect five days after publication in the
City’s official newspaper, which publication date is June ___, 2020.
4. A quorum of the members of the City Council was present throughout the meeting
and a majority of the members voted in the proper manner for the passage of the Ordinance.
5. That all other requirements and proceedings incident to the proper adoption of the
Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized
to execute this Certificate.
Dated: June ___, 2020.
CITY OF ARLINGTON, WASHINGTON
City Clerk
City of Arlington Council Agenda Bill Item: WS #11 Attachment KCOUNCIL MEETING DATE: May 26, 2020 SUBJECT: April 2020 Financial Report ATTACHMENTS: Financial Reports – Narrative General Fund Operating Statement Revenue Charts