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HomeMy WebLinkAbout2018-02-06 Council Meeting CITY OF ASHLAND Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed. Time permitting, the Presiding Officer may allow oral testimony. If you wish to speak, please fill out the Speaker Request form located near the entrance to the Council Chambers. The chair will recognize you and inform you as to the amount of time allotted to you, if any. The time granted will be dependent to some extent on the nature of the item under discussion, the number of people who wish to speak, and the length of the agenda. AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL February 6, 2018 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 7:00 p.m. Regular Meeting 1. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Executive Session of January 16, 2018 2. Business Meeting of January 16, 2018 VI. SPECIAL PRESENTATIONS & AWARDS 1. Presentation by OHRA on the Ashland job match report and their Strategic Plan 2. Update from the ad hoc Senior Program Advisory Committee VII. MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES Airport Conservation Forest Lands Historic Housing and Human Srvs. Parks & Recreation Planning Public Arts Transportation Tree Wildfire Mitigation Vlll. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] IX. CONSENT AGENDA 1. Confirmation of Term End Dates for Recent Appointments to the Citizens' Budget Committee 2. Approval of a resolution titled, "A resolution authorizing and approving a clean water state revolving fund loan agreement No. R11754," and further authorizing the City Administrator to sign the loan documents for both the new loan and to amend the original loan amount 3. Approval of personal services contract for Hersey Street reconstruction engineering design 4. Approval of contract for professional recruitment services with Springsted Waters 5. Approval of a public contract award to Evergreen Job & Safety Training, Inc. for safety training (onsite for Public Works & Electric Utility departments) X. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) None XI. UNFINISHED BUSINESS None XII. NEW AND MISCELLANEOUS BUSINESS 1. Support for clean energy jobs bill XIII. ORDINANCES, RESOLUTIONS AND CONTRACTS 1. First reading by title only of an ordinance titled, "An ordinance amending AMC 6.42 to restrict retail sales of tobacco products or inhalant delivery systems to adults only," and move onto second reading XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS XV. ADJOURNMENT OF BUSINESS MEETING In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735- 2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title 1). COUNCIL MEETINGS ARE BROADCAST LIVE ON CHANNEL 9, OR ON CHARTER CABLE CHANNEL I80. VISIT THE CITY OF AST-ILAND'S WEB SITE AT WWW.ASHI AND.OR.US i AGENDA FOR THE REGULAR MEETING ASHLAND CITY COUNCIL January 16, 2018 Council Chambers 1175 E. Main Street Note: Items on the Agenda not considered due to time constraints are automatically continued to the next regularly scheduled Council meeting [AMC 2.04.030.E.] 6:30 p.m. Executive Session for real property transaction pursuant to ORS 190.660(2)(e) 7:00 p.m. Regular Meeting 1. CALL TO ORDER Mayor Stromberg called the meeting to order at 7:08 PM II. PLEDGE OF ALLEGIANCE III. ROLL CALL Councilor Slattery, Councilor Lemhouse, Councilor Morris, Councilor Seffinger and Councilor Rosenthal. Councilor Darrow was absent. IV. MAYOR'S ANNOUNCEMENTS V. APPROVAL OF MINUTES 1. Executive Session of January 2, 2018 2. Business Meeting of January 2, 2018 Councilor Seffinger moved to approve the minutes. Councilor Lemhouse seconded. Discussion: None. All Ayes. Motion passed unanimously. VI. SPECIAL PRESENTATIONS & AWARDS 1. Introduction of Fire Chief Mike D'Orazi Interim City Administrator, John Karns introduced Fire Chief, Mr. D'Orazi. Mr. D'Orazi introduced himself. Mayor Stromberg spoke on behalf on the Council that all are pleased to welcome Chief D'Orazi. 2. Update from SOU Small Business Development Center Administrative Services assistant to the Administrator, Adam Hanks introduced Director, Marshall Doak. Mr. Doak thanked Council for the sponsorship for Rogue Valley Business Resource Forum. He spoke that there were 100 participants this year and 25. He spoke that they had 13 speaker engagements, 15 workshops and a 9-month business development class. VII. MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES Airport Conservation Forest Lands Historic Housing and Human Srvs. Parks & Recreation Planning Public Arts Transportation Tree Wildfire Mitigation VIII. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for Public Forum is 15 minutes. The Mayor will set time limits to enable all people wishing to speak to complete their testimony.) [15 minutes maximum] Gwen Davies- 860 Harmony Lane, Ashland - Spoke regarding the recall of 3 parks Commissioners. She read a letter stating comments and concerns (see attached). Dennis Miller - 725 Terrace Ave., Ashland-Spoke regarding homeless in Ashland. He explained that he found and organization called Access Resource Center which has been very helpful with his current move. He spoke regarding the importance of helping the homeless get off the street. Huelz Gutcheon- 2253 Hwy 99, Ashland - He spoke regarding Council being the complaint department. He spoke regarding climate change solutions. He suggested that in City limits to set the speed at 20 MPH. IX. CONSENT AGENDA 1. Approval of personal services contract for the preliminary engineering of the Ashland Canal Piping project Councilor Rosenthal pulled this item. He questioned why Public Works decided to phase it out and why the need for a public relations firm instead of in-house. Public Works Director, Paula Brown explained that the Ashland canal is in many yards in the City; since so many they decided it would be best to phase the project. The firm selected is outstanding for pipeline but not Public Relations. She explained the importance to get public awareness on this topic and that it cannot be done in-house. Councilor Rosenthal questioned when the next phase will go forward. Ms. Brown explained it will be about 12-18 months engineering phase then will move into construction. 2. Flexible service maintenance agreement with the Oregon Department of Transportation 3. Southern Oregon Cooperative intergovernmental agreement for materials and services 4. Request for approval of contract addendum with Northwest code professionals Councilor Slattery pulled this item. He questioned why this project is getting resourced out instead of working on it in-house. Planning Director, Bill Molnar gave a Staff report. He explained that the Planning Department has had a lot of turnover in the last 6 months. They decided to go with a company to keep up with customer service. 5. Approval of a resolution titled, "A resolution of the City Council of the City of Ashland, Oregon declaring its intention to reimburse expenditures from proceeds of tax-exempt obligations" Councilor Slattery pulled this item. Deputy Public Works Director, Scott Fleury gave a Staff report. 6. Approval of a resolution titled, "A resolution authorizing the investment policy of the City of Ashland and repealing Resolution 2009-33" 7. Special procurement for Water Treatment Plant filter media replacement and filter repair 8. Liquor license application for Restaurant Republic, LLC Councilor Slattery moved to approve the Consent Agenda. Councilor Lemhouse seconded. Discussion: None. All Ayes. Motion passed unanimously. X. PUBLIC HEARINGS (Persons wishing to speak are to submit a "speaker request form" prior to the commencement of the public hearing. Public hearings shall conclude at 9:00 p.m. and be continued to a future date to be set by the Council, unless the Council, by a two-thirds vote of those present, extends the hearing(s) until up to 10:30 p.m. at which time the Council shall set a date for continuance and shall proceed with the balance of the agenda.) None XI. UNFINISHED BUSINESS. None XIL NEW AND MISCELLANEOUS BUSINESS 1. Infill strategy update and ordinance revisions Public Works, Maria Harris gave a Staff report. Ms. Harris discussed the Ashland Transit Triangle Infill Strategies Project. She went over the importance of this project. John Fregonese, from Fregonese Associates presented a PowerPoint presentation (see attached). Mayor Stromberg explained that tonight Council will need to decide whether or not to refer this to the Planning Commission to start the Ordinance process. City Attorney, Dave Lohman spoke that no final decision can be made tonight. Councilor Lemhouse questioned the feedback from the developers. Mr. Fregonese spoke that the meeting with the developers went well and they gave positive feedback. He spoke that the Housing Authority also liked the idea of this project. Ms. Harris spoke that the developers supported the proposed project and gave suggested alternatives to the step backs. Councilor Seffinger questioned addressing affordable housing for 50 years and older. Mr. Fregonese explained that all structures will have elevators. Councilor Slattery questioned the $1200/household. He spoke regarding the vertical housing option. Mayor Stromberg questioned if there are more than 20 units for development could you use inclusionary zoning. Mr. Fregonese explained how to include inclusionary zoning. Councilor Morris questioned if residential subsidizing commercial. Mr. Fregonese answered yes. He explained if they go ahead with this project they will get all the zoning in order. Zach Brombacher - 1370 Tolman Creek, Ashland - Spoke as a developer. He spoke to stay with the zoning that is current. He suggested to not make it mandatory to have the overlay dictate the developers. He spoke in concern of lack of parking and issues with infill. Councilor Lemhouse suggested for Staff to respond to Mr. Brombackers concerns and bring back to Council. Councilor Lemhouse moved to direct the Planning Commission to initiate Ordinance revisions to implement the infill strategy for the transit triangle study area. Councilor Morris seconded. Discussion: Councilor Lemhouse spoke to the importance of moving forward with this. He spoke that there are still questions to be answered and discussions to be had. He suggested for Staff to look at financial incentives. Councilor Morris spoke in support of the motion. Councilor Rosenthal spoke in support of the motion and excitement for the project. Councilor Slattery spoke that the City has a great Planning Commission and is excited for the project. Roll Call Vote: Councilor Lemhouse, Councilor Morris, Councior Slattery, Councilor Rosenthal and Councilor Seffinger: YES. Motion passed unanimously. Councilor Lemhouse moved to direct staff to bring incentive programs similar to the vertical housing incentive program to a future Study Session. Councilor Slattery seconded. Discussion: Councilor Lemhouse spoke to the importance in looking at all our tools and incentives for the citizens. Councilor Slattery agreed with Councilor Lemhouse. Roll Call Vote: Councilor Lemhouse, Councilor Morris, Councilor Slattery, Councilor Rosenthal and Councilor Seffinger: YES. Motion passed unanimously. 2. Capital Improvements Plan update Ms. Brown gave an update of Capital Improvement Plan (CIP) projects approved and the status of other projects. She went over the spreadsheet (see attached). She explained all projects listed have begun. She suggested to have CIP updates twice a year instead of quarterly. 3. Annual appointments to the Citizens' Budget Committee Regina Ayers-199 Hillcrest, Ashland- Spoke regarding gender equity on Commissions and Committees. She encouraged Council to consider gender equity when making the appointments tonight. She went over percentages of female Commissioners verses male Commissioners. Councilor Rosenthal spoke he was impressed with the candidate pool. Council gave a consensus to not have citizens say their address during public forum and to just fill it out on the speaker request form. Council did a silent ballot vote (see attached). Shane Hunter and Pamela Lucas were appointed to the Budget Committee. XHL ORDINANCES. RESOLUTIONS AND CONTRACTS None XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Slattery thanked the people who put on the Martin Luther King Day Celebration. Mayor Stromberg spoke to the importance of history. XV. ADJOURNMENT OF BUSINESS MEETING The Business Meeting was adjourned at 9:22 PM Respectfully submitted by: City Recorder, Melissa Huhtala Attest: Mayor Stromberg In compliance with the Americans with Disabilities Act, ifyou need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I). 3. Annual appointments to the Citizens' Budget Committee Regina Ayers-199 Hillcrest, Ashland- Spoke regarding gender equity on Commissions and Committees. She encouraged Council to consider gender equity when making the appointments tonight. She went over percentages of female Commissioners verses male Commissioners. Councilor Rosenthal spoke he was impressed with the candidate pool. - Councilor Slattery spoke that he received a suggestion from a Citizen to not state have to state their address during Public Comment. Council gave consensus to have citizens fill out a speaker request form with their address but not to give their addresses when speaking just their name and City. Council did a silent ballot vote (see attached). Shane Hunter and Pamela Lucas were appointed to the Budget Committee. XIII. ORDINANCES, RESOLUTIONS AND CONTRACTS None XIV. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS Councilor Slattery thanked the people who put on the Martin Luther King Day Celebration. Mayor Stromberg spoke to the importance of history. XV. ADJOURNMENT OF BUSINESS MEETING The Business Meeting was adjourned at 9:08 PM Respectfully submitted by: City Recorder, Melissa Huhtala Attest: Mayo romberg In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator's office at (541) 488-6002 (TTY Council Business Meeting February • 2018 Title: Confirmation of Term End Dates for Recent Appointments to the Citizens' Budget Committee From: Melissa Huhtala City Recorder Melissa.huhtala@ashland.or.us Summary: Confirm appointment of Shane Hunter and Pamela Lucas to the Citizens Budget Committee with 4-year terms ending December 31, 2021. Actions, Options, or Potential Motions: I move to confirm appointment of Shane Hunter and Pamela Lucas to 4-year terms on the Citizens' Budget Committee each ending December 3 I st, 2021. Staff Recommendation: None. Resource Requirements: N/A Policies, Plans and Goals Supported: N/A Background and Additional Information: The Council appointed Shane Hunter and Pamela Lucas to the Citizens' Budget Committee at the January 16th Council Business meeting. The end date of their terms were erroneous stated to be December 31, 2022. Approval of the suggested motion would clarify that Mr. Hunter's and Ms. Lucas' terms are for a period of four years - as prescribed by statute - and that their terms end December 31, 2021. Attachments: None. Page Iof I CITY OF -ASHLAND Council Business Meeting February • 2018 Title: A Resolution Authorizing and Approving a Clean Water State Revolving Fund Loan Agreement No. R11754 and Amendment Number 1 R11751 From: Paula C. Brown, PE Public Works Director pauIa.brown(d_)ashland. or.us Summary: Before Council is a request to approve loan revisions and a resolution authorizing a financing loan increase of $1,924,589 to a new loan total of $4,829,000, and adjusting the loan's subsequent re-payment dates. The new loan increases funding to ensure completion of the Riparian Shading (Temperature Credits) and for design and construction of the Wastewater Treatment Plant Outfall Relocation project. This is an ongoing project with the Oregon Department of Environmental Quality (DEQ) Clean Water State Revolving Fund Loan (CWSRF) that was initially executed on May 21, 2013, and included all three projects: Membrane Filter Replacement, Riparian Restoration and Outfall Relocation. Tonight's Council actions will do two things: 1. Create an entirely new loan agreement (R11754) for $4,829,000 and authorize a resolution for this financing agreement with the DEQ CWSRF; and 2. Reduce the original DEQ CWSRF loan (R11751) amount from $4,549,691 to $1,645,280 (through amendment 1), and begin repayment of the Membrane Filter Replacement project. Actions, Options, or Potential Motions: Council may move to approve "A Resolution Authorizing and Approving a Clean Water State Revolving Fund Loan Agreement No. R11754," and further authorize the City Administrator to sign the loan documents for both the new loan and to amend the original loan amount (R11751Al). Should Council not approve these actions, staff recommends Council move forward with these projects and direct staff to research alternative funding options such as the Oregon Special Public Works Fund or conventional financing. Both options would likely incur higher interest rates and repayment costs. Staff Recommendation: Staff recommends moving forward with the new loan amount to include approval of the resolution for the new loan (R11754- Attachment B), and to reduce the original loan (R11751A - Attachment C and original agreement as Attachment D). Page 1 of 3 CITY OF -ASHLAND Resource Requirements: These projects are included in the Public Works Wastewater Treatment Plant fund. Total project costs for the three projects identified in these two loans are as follows: R11751AI R11754 Membranes: $1,645,280 Riparian Restoration / Shading $2,000,000 Outfall Relocation: $2,829,000 Total: $1,645,280 $4,829,000 The Membrane Filters were replaced in the summer of 2012. The City entered into an agreement with DEQ to fully finance the membrane replacement and other wastewater projects in the spring of 2013. Council's action tonight will split the DEQ loan into two portions; one for the membranes, and the other for the remaining projects. Loan repayment for the membranes is scheduled to begin in August 2018 and was anticipated in this biennium's budget. The Riparian Restoration/Shading (water quality temperature credit) project was budgeted for $1,262,000 for the BN 2017-19 budget years and will remain within that budget. The additional amount requested is anticipated as future year funds and will be requested during the following budget cycle (BN 2019-21). The additional amount should enable staff to complete the project. Prior year funding includes $33,010 for preliminary shading plan options. The Outfall Relocation project was budgeted at $660,000 for the BN 2017-19 budget years. In FY17, staff spent $223,000 on the prior Outfall Relocation Study. Council recently approved (December 5, 2017) the request for the Wastewater Treatment Plant Outfall Relocation Preliminary Design and Permitting in the amount of $361,231. It is anticipated that final design could be completed within this budgeted amount. Construction will be phased with approval by the Department of Environmental Quality with the new discharge permit. Policies, Plans and Goals Supported: The projects presented above represent the development and subsequent Council approval of the 2012 Comprehensive Sanitary Sewer Master Plan. The wastewater master plan and recently completed WWTP Outfall Relocation Study represent the next steps toward meeting the changes in an anticipated DEQ National Pollutant Discharge Elimination System (NPDES) permit renewal. Council Goals: 4. Evaluate real property and facility assets to strategically support city mission and goals. 22. Prepare for the impact of climate change on the community. Department Goals: • Maintain existing infrastructure to meet regulatory requirements and minimize life-cycle costs • Deliver timely life cycle capital improvement projects • Maintain and improve infrastructure that enhances the economic vitality of the community • Evaluate all city infrastructure regarding planning management and financial resources Page 2 of 3 CITY OF -ASHLAND I BacklZround and Additional Information: At the Council's regular business meeting on May 21, 2013, Council authorized approval of the original loan in the amount of $4,549,691 in CWSRF for replacement of membranes, relocation of the current effluent outfall and riparian shading project. The allocation of the three projects was: Membranes: $1,645,280 Shading & Outfall Relocation: $2,904,411 Total: $4,549,691 The loan repayment schedule detailed the first loan payment due in September of 2015. The loan repayment schedule was constructed to pay back the membrane portion in 15 years, coinciding with the useful life of the membranes, while the sponsorship option projects are amortized over a 20-year useful life. In addition, a legal counsel opinion was rendered to finalize the loan documents so that the City could legally enter into the loan agreement and not violate any other agreement, statute, order or law. The Membrane Filters were replaced in the fall of 2012 and declared useable during the next membrane cycle in March 2013. The WWTP Outfall Relocation Study was completed in August 2017. Staff has had numerous conversations with DEQ as to the status of this study. DEQ has verbally accepted the concept of the plan to relocate the treatment plant outfall from Ashland Creek to Bear Creek, and continues to indicate that the relocation will be required under any new permit. DEQ will not formally "approve" the project until they have completed the renewal of the City's NPDES permit. Staff anticipates DEQ starting the permit negotiations within the year. DEQ acknowledges the awkward position the City is in, and has authorized the design process. The City has two additional CWSRF loans with DEQ: • R11752 for $9,900,000 for the Oxidation Ditch and pipeline improvements (approved May 15, 2017) • R11753 for $1,300,000 for Irrigation Ditch Piping (approved August 1, 2017) Attachments: A. Resolution: "A Resolution Authorizing and Approving a Clean Water State Revolving Fund Loan Agreement No. R11754" B. Contract: Clean Water State Revolving Fund Loan Agreement No. R11754 C. Contract Amendment: Clean Water State Revolving Fund Loan Agreement No. R11751 Amendment No. 1 D. Original signed agreement R11751 Page 3of3 CITY OF ASHLAND RESOLUTION NO. 2018- A RESOLUTION AUTHORZING AND APPROVING A STATE REVOLVING FUND LOAN AGREEMENT TO FINANCE WASTEWATER SYSTEM PROJECTS RECITALS: A. The city of Ashland (the "City") has entered into negotiations with the State of Oregon Department of Environmental Quality (the "DEQ") for a loan to the City from the Clean Water State Revolving Fund ("CWSRF") in the approximate amount of $4,829,000 for the purposes of riparian restoration work (temperature credits/shading within the Bear Creek Watershed) and wastewater treatment plant effluent outfall relocation. B. The DEQ has provided to the City a proposed CWSRF Loan Agreement (RI 1754). C. The Interest rate on the proposed loan is 1.00% per annum. D. The proposed loan is to be fully repaid 20 years after the estimated or actual date of completion of the project, whichever is earlier. E. The proposed loan would be secured by the Net Operating Revenues of the City's wastewater system. F. Under the proposed loan, the City would pay an annual fee of 0.5% of the Outstanding Loan Amount, in addition to interest. G. The proposed loan requires the City to review its wastewater rates and fees at least annually and to adjust them as necessary to ensure collections sufficient to meet a specified debt service requirement. H. The City Attorney and Director of Finance have approved this proposed agreement as to legal sufficiency and conformance with generally accepted accounting principles. THE CITY COUNCIL OF THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The City does authorize and approve of the form of the SRF Loan Agreement for the financing of wastewater system projects. SECTION 2. The City does authorize and approve the establishment and funding of a designated reserve account to meet the "Loan Reserve" requirement of the SRF Loan Agreement, and does direct the Director of Finance to establish this loan reserve. SECTION 3. The City does authorize and approve the Director of Finance and the City Administrator, acting for and on behalf of the City and without further action by the City Council, to execute the final DEQ CWSRF Loan Agreement and such other and additional Resolution No. 2018- Page 1 of 2 documents as may reasonably be required for the consummation and closing of the loan, and any amendments required thereafter. This resolution was duly PASSED and ADOPTED this day of 2018, and takes effect upon signing by the Mayor. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of 12018. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Resolution No. 2018- Page 2 of 2 CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT No. R11754 . BETWEEN THE STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENviRoNMENTAL QUALITY AND CITY OF ASHLAND OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 2 TABLE OF CONTENTS ARTICLE 1: THE LOAN - SPECIFIC TERMS ....................................................................................3 ARTICLE 2: GENERAL LOAN PROVISIONS .......................................................................................4 ARTICLE 3: GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS ..................................7 ARTICLE 4: CONDITIONS TO LOAN ........................................................................:.......................8 ARTICLE 5: COVENANTS OF BORROWER ................................................................10 ARTICLE 6: REPRESENTATIONS, WARRANTIES, COVENANTS AND CONDITIONS RELATINGTO CONSTRUCTION PROJECTS ONLY ............................................................................14 ARTICLE 7: DISCLAIMERS BY DEQ; LIMITATIONS ON DEQ'S LIABILITY .................................17 ARTICLE 8: DEFAULT AND REMEDIES ...........................................................................................18 ARTICLE 9: DEFINITIONS .............................................................................................................19 ARTICLE 10: MISCELLANEOUS .....................................................................................................21 APPENDIX A: REPAYMENT SCHEDULE ..........................................................................................25 APPENDLY B: ESTIMATED CWSRF LOAN DISBURSEMENT SCHEDULE ......................................26 APPENDIX C: DBE GOOD FAITH EFFORTS .................................................................................27 APPENDIX D: RESERVED ..............................................................................................................28 APPENDIX E: DAMS-BACON PROVISION ...............................................................29 APPENDIX F: EQUAL EMPLOYMENT OPPORTUNITY .................................................38 APPENDIX G: CERTIFICATION REGARDING LOBBYING .............................................40 CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 3 THIS LOAN AGREEMENT is made and entered into as of the date it is fully executed by both parties (and in the case of the State, approved by the Attorney General's Office, if required) and is by and between the State of Oregon, acting by and through its Department of Environmental Quality ("DEQ"), and the Borrower (as defined below). Unless the context requires otherwise, capitalized terms not defined below shall have the meanings assigned to them by ARTICLE 9 of this Loan Agreement. The reference number for the Loan made pursuant to this Loan Agreement is Loan No. R11754. This loan replaces the Non-Point source portion of previously allocated and executed in loan R11751. DEQ agrees to make, and Borrower agrees to accept, the Loan on the terms and subject to the conditions set forth below. ARTICLE 1: THE LOAN - SPECIFIC TERMS DEQ agrees to make the Loan on the following terms and conditions: (A) BORROWER: City of Ashland. (B) BORROWER's ADDRESS: City of Ashland 20 E. Main Street Ashland, Oregon 97520 Fax 541-488-6006 (C) LOAN AMOUNT: $4,829,000. (D) TYPE AND PURPOSE OF LOAN. The Loan is a "Revenue Secured Loan" made by DEQ pursuant to OAR Section 340-054-0065(2) for the purpose of financing the Project. This is a sponsorship option loan, issued to the Borrower under OAR 340-054-0022(6)(c). (E) PROJECT TITLE: Riparian Restoration (temperature credits/shading) and outfall relocation. (F) DESCRIPTION OF THE PROJECT: Phase 1: Riparian restoration work within the Bear Creek Watershed. Phase II: Effluent outfall relocation. (G) INTEREST RATE: One and 00/100 percent (1.00%) per annum. Calculation of interest is also discussed in ARTICLE 2(E) and in ARTICLE 2(F)(4) of this Agreement. (I1) REPAYMENT PERIOD: An interest-only payment shall be made August 1, 2021 and payments thereafter shall be made according to the schedule at Appendix A. Repayment of amounts owed shall end no later than (a) twenty (20) years after the Completion Date or (b) twenty (20) years after the estimated Completion Date set forth in ARTICLE 3(A)(10), whichever date is earlier. (I) TERMS OF REPAYMENT: An interest-only payment within six months after the estimated Project Completion Date set forth in ARTICLE 3(A)(10) and thereafter semi-annual payments of principal and interest in accordance with APPENDIX A and ARTICLE 2(F) of this Agreement. CrrY OF ASHI.AND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 4 (T) PLEDGE: The Borrower hereby grants to DEQ a security interest in and irrevocably pledges its Net Operating Revenues to secure payment of and to pay the amounts due under this Loan Agreement. The Net Operating Revenues so pledged and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 287A.310. The Borrower represents and warrants that the pledge of Net Operating Revenues hereby made by the Borrower complies with, and shall be valid and binding from the date of this Agreement pursuant to, ORS 287A.310. The Borrower covenants with DEQ and any assignee of this Agreement that except as otherwise expressly provided herein, the Borrower shall not issue any other obligations which have a pledge or lien on the Net Operating Revenues superior to or on a parity with the pledge herein granted without the written permission of DEQ. This Loan is a parity obligation with all other CWSRF loans between DEQ and the Borrower; provided, however, that this provision shall not affect the priority that prior CWSRF loans are entitled to in relation to any loans between Borrower and any third parties. (I) ANNUAL FEE: An annual fee of 0.5% of the Outstanding Loan Amount (as determined prior to the posting of the payment due on that date) is due during the Repayment Period commencing with the second payment date hereunder and annually thereafter. Annual. fee payments due during the calendar years 2013 and 2014, if any, will be 0.25% of the Outstanding Loan Amount. ARTICLE 2: GENERAL LOAN PROVISIONS (A) AGREEMENT OF DEQ TO LOAN. DEQ agrees to loan the Borrower an amount not to exceed the Loan Amount, subject to the terms and conditions of this Loan Agreement, but solely from funds available to DEQ in the Water Pollution Control Revolving Fund for its Clean Water State Revolving Fund program. This Loan Agreement is given as evidence of a Loan to the Borrower made by DEQ pursuant to ORS Chapters 190, 286A, 287A, and 468, and OAR Chapter 340, all as amended from time to time, consistent with the express provisions hereof. (B) AVAILABILITY OF FUNDS. DEQ's obligation to make the Loan described in this Agreement is subject to the availability of funds in the Water Pollution Control Revolving Fund for its CWSRF program, and DEQ shall have no liability to the Borrower or any other party if such funds are not available or are not available in amounts sufficient to fund the entire Loan described herein, as determined by DEQ in the reasonable exercise of its administrative discretion. Funds may not be available ahead of the estimated schedule of disbursements submitted by the Borrower, which is attached as APPENDIX B. This schedule may be revised from time to time by the parties without the necessity of an amendment by replacing the then current APPENDIX B with an updated APPENDIX B which is dated and signed by both parties. (C) DISBURSEMENT OF LOAN PROCEEDS. (1) Proiect Account(s). Loan proceeds (as and when disbursed by DEQ to the Borrower) shall be deposited in a Project account(s). The Borrower shall maintain Project account(s) as segregated account(s). Funds in the Project account(s) shall only be C[TY of ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 5 used to pay for Project costs, and all earnings on the Project account(s) shall be credited to the account(s). (2) Documentation of Expenditures. The Borrower shall provide DEQ with written evidence of materials and labor furnished to and performed upon the Project and such receipts for the payment of the same, releases, satisfactions and other signed statements and forms as DEQ may reasonably require. DEQ will disburse funds to pay Project costs only after the Borrower has provided documentation satisfactory to DEQ that such Project costs have been incurred and qualify for reimbursement hereunder. (3) Adjustments and Corrections. DEQ may at any time review and audit requests for disbursement and make adjustments for, among other things, ineligible expenditures, mathematical errors, items not built or bought, unacceptable work and other discrepancies. Nothing in this Agreement requires DEQ to pay any amount for labor or materials unless DEQ is satisfied that the claim therefor is reasonable and that the Borrower actually expended and used such labor or materials in the Project. In addition, DEQ shall not be required to make any disbursement which would cause the total of all disbursements made hereunder (including the requested disbursement) to be greater than the total estimated cost of the work completed at the time of the disbursement, as determined by DEQ. (4) Contract Retainage Disbursement. DEQ will not disburse Loan proceeds to cover contractor retainage unless the Borrower is disbursing retainage to an escrow account and provides proof of the deposit, or until the Borrower provides proof that it paid retained funds to the contractor. (D) AGREEMENT OF BORROWER TO REPAY. The Borrower agrees to repay all amounts owed on this Loan as described in ARTICLE 1(I) and ARTICLE 2(F) in U.S. Dollars in immediately available funds at the place listed for DEQ in ARTICLE 10(A). In any case, the Borrower agrees to repay all amounts owed on this Loan within the Repayment Period. (E) INTEREST. Interest will accrue at the rate specified in ARTICLE 1(G) from the date that a disbursement hereunder is mailed or delivered to the Borrower or deposited into an account of the Borrower. Interest will accrue using a 365/366 day year and actual days elapsed until the Final Loan Amount is determined and the final repayment schedule is prepared and thereafter on a 360- day year basis and actual days elapsed. (F) LOAN REPAYMENT. (1) Preliminary Repayment Schedule; Interim Payments. The attached APPENDIX A is a preliminary repayment schedule based on the estimated date of the first disbursement hereunder and Loan Amount. Until the final repayment schedule is effective, the Borrower shall make the payments set forth in the preliminary repayment schedule. (2) Final Repayment Schedule. After the Borrower has submitted its final request for Loan proceeds and DEQ has made all required disbursements hereunder, DEQ will determine the Final Loan Amount and prepare a final payment schedule that provides for level semi-annual installment payments of principal and interest (commencing on the next semi- annual payment date), each in an amount sufficient to pay accrued interest to the date of CITY OF ASHLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 6 payment and to pay so much of the principal balance as to fully amortize the then Outstanding Loan Amount over the remaining Repayment Period. (3) Crediting of Scheduled Pa nom. A scheduled payment received before the scheduled repayment date will be applied to interest and principal on the scheduled repayment date, rather than on the day such payment is received. Scheduled payments will be applied first to fees due, if any, and then to interest, according to the applicable repayment schedule, and then to principal. (4) Crediting of Unscheduled Payments. All unscheduled payments, including any prepayments and partial payments, will be applied first to fees due, if any, and then to accrued unpaid interest (which will be computed as otherwise provided in this Agreement, except that interest from the last payment date will be calculated using a 365/366 day year and actual days elapsed), and then to principal. In the case of a Loan prepayment that does not prepay all of the principal of the Loan, DEQ will determine, in its sole discretion, how it will apply such Loan prepayment to the Outstanding Loan Amount. After a partial payment, DEQ may, in its sole and absolute discretion, reamortize the Outstanding Loan Amount at the same interest rate for the same number of payments to decrease the Loan payment amount; provided, however, that nothing in this Agreement requires DEQ to accept any partial payment or to reamortize the Outstanding Loan Amount if it accepts a partial payment. (5) Final Payment. The Outstanding Loan Amount, all accrued and unpaid interest, and all unpaid fees and charges due hereunder are due and payable no later than twenty (20) years after the Completion Date. (G) PREPAYMENT. (1) Optional Prepa ice. The Borrower may prepay any amount owed on this Loan without penalty on any business day upon 24 hours prior written notice. Any prepayment made hereunder will be applied in accordance with ARTICLE 2(F)(4). (2) Refinancing of Loan by the Borrower. If the Borrower refinances the portion of the Project financed by this Loan or obtains an additional grant or loan that is intended to finance the portion of the Project financed by this Loan, it will prepay the portion of the Loan being refinanced by the additional grant or loan. (3) Ineligible Uses of the Project. If the Borrower uses the Project for uses that are other than those described in ARTICLE I(F) ("ineligible uses"), the Borrower shall, upon demand by DEQ, prepay an amount equal to the Outstanding Loan Amount multiplied by the percentage (as determined by DEQ) of ineligible use of the Project. Such prepayment shall be applied against the most remotely maturing principal installments and shall not postpone the due date of any payment(s) hereunder. (I) LATE PAYMENT FEE. The Borrower agrees to pay immediately upon DEQ's demand a late fee equal to five percent (51/o) of any payment (including any loan fee) that is not received by DEQ on or before the tenth (10`h) calendar day after such payment is due hereunder. CITY of AsBLArD: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 7 (1) TERMINATION OF LOAN AGREEMENT. Upon performance by the Borrower of all of its obligations under this Loan Agreement, including payment in full of the Final Loan Amount, all accrued interest and all fees, charges and other amounts due hereunder, this Loan Agreement will terminate, and DEQ will release its interest in any collateral given as security under this Loan Agreement. ARTICLE 3: GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS (A) REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower represents and warrants to DEQ that: (1) It is a duly formed and existing public agency (as defined in ORS 468.423(2)) and has full power and authority to enter into this Loan Agreement. (2) This Agreement has been duly authorized and executed and delivered by an authorized officer of the Borrower and constitutes the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms. (3) All acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this Agreement have existed, have happened, and have been performed in due time, form and manner as required by law. (4) Neither the execution of this Loan Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with any of the terms and conditions of this Loan Agreement will violate any provision of law, or any order of any court or other agency of government, or any agreement or other instrument to which the Borrower is now a party or by which the Borrower or any of its properties or assets is bound. Nor will this Loan Agreement be in conflict with, result in a breach of, or constitute a default under, any such agreement or other instrument, or, except as provided hereunder, result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Borrower. (5) This Loan Agreement does not create any unconstitutional indebtedness. The Loan Amount together with all of the Borrower's other obligations does not, and will not, exceed any limits prescribed by the Constitution, any of the statutes of the State of Oregon, the Borrower's charter, or any other authority. (6) The Project is a project which the Borrower may undertake pursuant to Oregon law and for which the Borrower is authorized by law to borrow money. (7) The Borrower has full legal right and authority and all necessary licenses and permits required as of the date hereof to own, operate and maintain the Facility and the Project, other than licenses and permits relating to the Facility or the Project which the Borrower expects to and shall receive in the ordinary course of business, to carry on its activities relating thereto, to execute and deliver this Agreement, to undertake and complete the Project, and to carry out and consummate all transactions contemplated by this Agreement. CITY of Asffi.AND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENviRoNMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 8 (8) The information contained herein which was provided by the Borrower is true and accurate in all respects, and there is no material adverse information relating to the Project or the Loan, known to the Borrower, that has not been disclosed in writing to DEQ. (9) No litigation exists or has been threatened that would cast doubt on the enforceability of the Borrower's obligations under this Loan Agreement. (10) The estimated Completion Date of the Project is February 1, 2021. The Borrower agrees to complete the Project by the estimated Completion Date. (11) The estimated total Costs of the Project are $4,829,000. (12) The Borrower is in compliance with all laws, ordinances, and governmental rules and regulations to which it is subject, the failure to comply with which would materially adversely affect the ability of the Borrower to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Borrower or the Project. (B) CONTINUING REPRESENTATIONS OF THE BORROWER. The representations of the Borrower contained herein shall be true on the closing date for the Loan and at all times during the term of this Agreement. (C) REPRESENTATIONS AND WARRANTIES OF DEQ. DEQ represents and warrants that the Director has power under ORS Chapter 468 and OAR Chapter 340, Division 54, to enter into the transactions contemplated by this Loan Agreement and to carry out DEQ's obligations thereunder and that the Director is authorized, to execute and deliver this Loan Agreement and to make the Loan as contemplated hereby. ARTICLE 4: CONDITIONS TO LOAN (A) CONDITIONS TO CLOSING. DEQ's obligations hereunder are subject to the condition that on or prior to June 26, 2013, the Borrower will duly execute and deliver to DEQ the following items, each in form and substance satisfactory to DEQ and its counsel: (1) this Agreement duly executed and delivered by an authorized officer of the Borrower; (2) a copy of the ordinance, order or resolution of the governing body of the Borrower authorizing the execution and delivery of this Agreement, certified by an authorized officer of the Borrower; (3) Certification Regarding Lobbying, substantially in the form of APPENDix G, duly executed and delivered by an authorized officer of the Borrower; (4) an opinion of the legal counsel to the Borrower to the effect that: (a) The Borrower has the power and authority to execute and deliver and perform its obligations under this Loan Agreement; CiTr oe ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 9 (b) This Loan Agreement has been duly executed and acknowledged where necessary by the Borrower's authorized representative(s), all required approvals have been obtained, and all other necessary actions have been taken, so that this Loan Agreement is valid, binding, and enforceable against the Borrower in accordance with its terms, except as such enforcement is affected by bankruptcy, insolvency, moratorium, or other laws affecting creditors rights generally; (c) To such counsel's knowledge, this Loan Agreement does not violate any other agreement, statute, court order, or law to which the Borrower is a party or by which it or any of its property or assets is bound; and (d) The Gross Revenues from which the Net Operating Revenues are derived and that are used as security for the Loan will not constitute taxes that are limited by Section I Ib, Article XI of the Oregon Constitution; and (5) such other documents, certificates, opinions and information as DEQ or its counsel may reasonably require. (B) CONDITIONS TO DISBURSEMENTS. Notwithstanding anything in this Agreement to the contrary, DEQ shall have no obligation to make any disbursement to the Borrower under this Agreement unless: (1) No Event of Default and no event, omission or failure of a condition which would constitute an Event of Default after notice or lapse of time or both has occurred and is continuing; (2) All of the Borrower's representations and warranties in this Agreement are true and correct on the date of disbursement with the same effect as if made on such date; and (3) The Borrower submits a disbursement request to DEQ that complies with the requirements of ARTICLE 2(C); provided, however, DEQ shall be under no obligation to make any disbursement if: (x) DEQ determines, in the reasonable exercise of its administrative discretion, there is insufficient money available in the SRF and CWSRF Program for the Project; or (y) there has been a change in any applicable state or federal law, statute, rule or regulation so that the Project is no longer eligible for the Loan. ARTICLE 5: COVENANTS OF BORROWER (A) GENERAL COVENANTS OF THE BORROWER. Until the Loan is paid in full, the Borrower covenants with DEQ that: (1) The Borrower shall use the Loan funds only for payment or reimbursement of the Costs of the Project in accordance with this Loan Agreement. The Borrower acknowledges and agrees that the Costs of the Project do NOT include any Lobbying costs or expenses incurred by CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 10 Borrower or any person on behalf of Borrower and that Borrower will not request payment or reimbursement for Lobbying costs and expenses. (2) If the Loan proceeds are insufficient to pay for the Costs of the Project in full, the Borrower shall pay from its own funds and without any right of reimbursement from DEQ all such Costs of the Project in excess of the Loan proceeds. (3) The Borrower is and will be the owner of the Facility and the Project and shall defend them against the claims and demands of all other persons at any time claiming the same or any interest therein. (4) The Borrower shall not sell, lease, transfer, or encumber or enter into any management agreement or special use agreement with respect to the Facility or any financial or fixed asset of the utility system that produces the Net Operating Revenues without DEQ's prior written approval, which approval may be withheld for any reason. Upon sale, transfer or encumbrance of the Facility or the Project, in whole or in part, to a private person or entity, this Loan shall be immediately due and payable in full. (5) Concurrent with the execution and delivery of this Loan Agreement, or as soon thereafter as practicable, the Borrower shall take all steps necessary to cause the Project to be completed in a timely manner in accordance with all applicable DEQ requirements. Project construction must begin within five (5) years of the environmental determination required by OAR 340-054-0022(5)(c). Borrower shall take reasonable steps to begin using the Loan proceeds within two (2) years after execution of this Agreement, and if Borrower fails to do so, DEQ may terminate this Agreement. (6) The Borrower shall take no action that would adversely affect the eligibility of the Project as a CWSRF project or cause a violation of any Loan covenant in this Agreement. (7) The Borrower shall undertake the Project, request disbursements under this Loan Agreement, and use the Loan proceeds in full compliance with all applicable laws and regulations of the State of Oregon, including but not limited to ORS Chapter 468 and Oregon Administrative Rules Sections 340-054-0005 to 340-054-0065, as they may be amended from time to time, and all applicable federal authorities and laws and regulations of the United States, including but not limited to Title VI of the Clean Water Act as amended by the Water Quality Act of 1987, Public Law 100-4, the federal cross-cutters listed at APPENDIX D, the equal employment opportunity provisions in APPENDIX F, and the regulations of the U.S. Environmental Protection Agency, all as they may be amended from time to time. (8) The Borrower shall keep the Facility in good repair and working order at all times and operate the Facility in an efficient and economical manner. The Borrower shall provide the necessary resources for adequate operation, maintenance and replacement of the Project and retain sufficient personnel to operate the Facility. (9) Interest paid on this Loan Agreement is not excludable from gross income under Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"). However, DEQ may have funded this Loan with the proceeds of State bonds that bear interest that is excludable from gross Income under Section 103(a) of the Code. Section 141 of the Code requires that the State not allow the proceeds of the State CrrY OF ASHLAND: R11754 LOAN AGREENMNT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 11 bonds to be used by private entities (including the federal government) in such a way that the State bonds would become "private activity bonds" as defined in Section 141 of the Code. To protect the State bonds the Borrower agrees that it shall not use the Loan proceeds or lease, transfer or otherwise permit the use of the Project by any private person or entity in any way that that would cause this Loan Agreement or the State bonds to be treated as "private activity bonds" under Section 141 of the Code and the regulations promulgated under that Section of the Code. (B) DEBT SERVICE COVERAGE REQUIREMENT; WASTEWATER RATE COVENANT; REPORTING. (1) Debt Service Coverage Requirement. The Borrower shall maintain . wastewater rates and charge fees in connection with the operation of the Facility that are adequate to generate Net Operating Revenues in each fiscal year sufficient to pay (i) all debt service (excluding debt service on the Loan), (ii) all other financial obligations imposed in connection with prior lien obligations of the Borrower, and (iii) an amount equal to the debt service coverage factor of 105% multiplied by the debt service payments due under this Loan Agreement in that fiscal year. (2) Wastewater Rate Adjustments. The Borrower shall review its wastewater rates and fees at least annually. If, in any fiscal year, the Borrower fails to collect fees sufficient to meet the debt service coverage requirement described in ARTICLE 5(B)(1), the Borrower shall promptly adjust its wastewater rates and fees to assure future compliance with such coverage requirement. The Borrower's adjustment of the wastewater rates and fees does not constitute a cure of any default by the Borrower of the debt service coverage requirement set forth in ARTICLE 5(B)(1). The Borrower's failure to adjust rates shall not, at the discretion of DEQ, constitute a default if the Borrower transfers to the fund that holds the Net Operating Revenues unencumbered resources in an amount equal to the revenue deficiency to the Facility that produces the Net Operating Revenues. (3) Reporting Requirement. By December 31 of each year the Borrower shall provide DEQ with a report that demonstrates the Borrower's compliance with the requirements of this ARTICLE 5(B). If the audit report described in ARTICLE 5(F) identifies the Net Operating Revenues and contains a calculation demonstrating the Borrower's satisfaction of the requirements of this ARTICLE 5(B), that audit will satisfy the requirements of this ARTICLE 5(13)(3). (C) LOAN RESERVE REQiIIREMENT; LOAN RESERVE ACCOUNT. (1) Loan Reserve Requirement. The Loan reserve requirement equals 100% of the average annual debt service based on the final repayment schedule. Until the Final Loan Amount is calculated, the Loan reserve requirement is $223,277. The Borrower shall deposit the Loan reserve requirement amount into the Loan Reserve Account no later than the date the first payment is due hereunder. (2) Loan Reserve Account. The Borrower shall create a Loan Reserve Account that shall be held in trust for the benefit of DEQ. The Borrower hereby grants to CITY of AsHLArm: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 12 DEQ a security interest in and irrevocably pledges the Loan Reserve Account to pay the amounts due under this Loan Agreement. The funds in Loan Reserve Account so pledged and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 287A.310. The Borrower represents and warrants that the pledge of the Loan Reserve Account hereby made by the Borrower complies with, and shall be valid and binding from the date of this Agreement pursuant to, ORS 287A.310. The Borrower shall use the funds in the Loan Reserve Account solely to pay amounts due hereunder until the principal, interest, fees, and any other amounts due hereunder have been fully paid. (3) Additional Deposits. If the balance in the Loan Reserve Account falls below the Loan reserve requirement, the Borrower shall promptly deposit from the first Net Operating Revenues available after payment of the amounts due hereunder (unless the Borrower has previously made such deposit from other money of the Borrower) an amount sufficient to restore the balance up to the Loan reserve requirement. (D) INSURANCE. At its own expense, the Borrower shall, during the term of this Agreement, procure and maintain insurance coverage (including, but not limited to, hazard, flood and general liability insurance) adequate to protect DEQ's interest and in such amounts and against such risks as are usually insurable in connection with similar projects and as is usually carried by entities operating similar facilities. The insurance shall be with an entity which is acceptable to DEQ. The Borrower shall provide evidence of such insurance to DEQ. Self-insurance maintained pursuant to a recognized municipal program of self-insurance will satisfy this requirement. (E) INDEMNIFiCATZON. The Borrower shall, to the extent permitted by law and the Oregon Constitution, indemnify, save and hold the State, its officers, agents and employees harmless from and (subject to ORS Chapter 180) defend each of them against any and all claims, suits, actions, losses, damages, liabilities, cost and expenses of arty nature whatsoever resulting from, arising out of or relating to the acts or omissions of the Borrower or its officers, employees, subcontractors or agents in regard to this Agreement or the Project. (F) THE BORROWER'S FINANCIAL RECORDS; FINANCIAL REPORTING REQUIREMENTS. (1) Financial Records. The Borrower shall keep proper and complete books of record and account and maintain all fiscal records related to this Agreement, the Project, and the Facility in accordance with generally accepted accounting principles, generally accepted government accounting standards, the requirements of the Governmental Accounting Standards Board, and state minimum standards for audits of municipal corporations. The Borrower must maintain separate Project accounts in accordance with generally accepted government accounting standards promulgated by the Governmental Accounting Standards Board. The Borrower will permit DEQ and the Oregon Secretary of State and their representatives to inspect its properties, and all work done, labor performed and materials furnished in and about the Project, and DEQ, the Oregon Secretary of State and the federal government and their duly authorized representatives shall have access to the Borrower's fiscal records and other books, documents, papers, plans and writings that are pertinent to this Agreement to perform examinations and audits and make excerpts and transcripts and take copies. Cny OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 13 (2) Record Retention Period. The Borrower shall retain and keep accessible files and records relating to the Project for at least six (6) years (or such longer period as may be required by applicable law) after Project completion as determined by DEQ and financial files and records until all amounts due under this Loan Agreement are fully repaid, or until the conclusion of any audit, controversy, or litigation arising out of or related to this Agreement, whichever date is later. (3) Audit. Federal enabling legislation and applicable regulations require an audit of each CWSRF Loan. The Borrower agrees to provide to DEQ the following which DEQ agrees to accept as adequate to meet this federal audit requirement. (a) As soon as possible, but in no event later than six (6) months following the Project Completion Date, a full and complete accounting of the Costs of the Project, including but not limited to documentation to support each cost element and a summary of the Costs of the Project and the sources of funding; and (b) As soon as possible, but in no event later than nine (9) months after the end of each fiscal year, a copy of the Borrower's annual audit report, if requested by DEQ. (4) Single Audit Act Requirements. Single Audit Requirements. Federal enabling legislation and applicable regulations require an audit of each CWSRF Loan. The CWSRF Program receives capitalization grants through the Catalog of Federal Domestic Assistance ("CFDA") No. 66.458: Capitalization Grants for State Revolving Funds and is subject to the regulations of the U.S. Environmental Protection Agency ("EPA"). Borrower is a sub-recipient. (a) Subrecipients receiving federal funds in excess of $750,000 in the subrecipient's fiscal year are subject to audit conducted in accordance with the provisions of 2 CFR part 200, subpart F. The Borrower, if subject to this requirement, shall at its own expense submit to DEQ a copy of, or electronic link to, its annual audit subject to this requirement covering the funds expended under this Agreement and shall submit or cause to be submitted to DEQ the annual audit of any subrecipient(s), contractor(s), or subcontractor(s) of the Borrower responsible for the financial management of funds received under this Agreement. (b) Audit costs for audits not required in accordance with 2 CFR part 200, subpart F are unallowable. If the Borrower did not expend $750,000 or more in Federal funds in its fiscal year, but contracted with a certified public accountant to perform an audit, costs for performance of that audit shall not be charged to the funds received under this Agreement. (c) The Borrower shall save, protect and hold harmless DEQ from the cost of any audits or special investigations performed by the Federal awarding agency or any federal agency with respect to the funds expended under this Agreement. The Borrower acknowledges and agrees that any audit costs incurred by Borrower as a result of allegations of fraud, waste or abuse are ineligible for reimbursement under this or any other agreement between Borrower and the State of Oregon. CrrY of AsBLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY - CLEAN WATER STATE REVOLVING FUND PAGE 14 (G) DBE GOOD FAITH EFFORT. Pursuant to the good faith efforts described in APPENDIX C, the Borrower shall make a good faith effort to promote fair share awards to Minority Business Enterprises ("MBE"), Women's Business Enterprises ("WBE"), and Small Businesses in Rural Areas ("SBRA") on all contracts and subcontracts awarded as part of the Project. The Borrower agrees to include in its contract(s) with its prime contractor(s), the following language, which must not be altered in any way: "The contractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. The contractor shall carry out applicable requirements of 40 CFR part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the contractor to carry out these requirements is a material breach of this contract which may result in the termination of this contract or other legally available remedies." The Borrower also agrees to include, in its contract(s) with its prime contractor(s), and shall cause each contract awarded by its prime contractor(s) to include, language to the following effect (the exact language may vary): (1) A prime contractor must pay its subcontractor(s) no more than 30 days from the prime contractor's receipt of payment from the Borrower. (2) The Borrower must be notified in writing by its prime contractor prior to any termination of a DBE subcontractor for convenience by the prime contractor. (3) If a DBE subcontractor fails to complete work under the subcontract for any reason, the prime contractor must employ the Six Good Faith Efforts described in 40 C.F.R. 33.301 if soliciting a replacement subcontractor. (4) A prime contractor must employ the Six Good Faith Efforts even if the prime contractor has achieved its Fair Share Objectives under Subpart D of 40 C.F.R. Part 33. (I) CONTRACT LANGUAGE. The Borrower shall include in all contracts (unless exempt) with its prime contractor(s) the language set forth in APPENDIX F. Further, the Borrower agrees to fully comply with Subpart C of 2 C.F.R. 180 and Subpart C of 2 C.F.R. 1532 regarding debarment and suspension and agrees to include or cause to be included in any contract at any tier the requirement that a contractor comply with Subpart C of 2 C.F.R. 180 and Subpart C of 2 C.F.R. 1532 if the contract is expected to equal or exceed $25,000. (1) PROJECT ASSURANCES. Nothing in this Loan Agreement prohibits the Borrower from requiring more assurances, guarantees, indemnity or other contractual requirements from any party performing Project work. CrrY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 15 ARTICLE 6: REPRESENTATIONS, WARRANTIES, COVENANTS AND CONDITIONS RELATING TO CONSTRUCTION PROJECTS ONLY (A) THE BORROWER'S REPRESENTATION AND WARRANTY REGARDING COSTS ALREADYINCURRED. (1) The Borrower represents and warrants to DEQ that, as of the date of this Loan Agreement, the Costs of the Project actually incurred by the Borrower for construction, do not exceed $-0-. (2) The Borrower acknowledges that DEQ is relying upon the Borrower's representation regarding the amount of Costs of the Project incurred by the Borrower for construction prior to the date of this Loan Agreement as set forth in ARTICLE 6(A)(1) above to determine what portion of the Loan qualifies as a "refinancing" under the EPA's Clean Water State Revolving Fund regulations, 40 C.F.R. Part 35, that may be disbursed on a reimbursement basis. (B) CONDITION TO DISBURSEMENTS. DEQ's obligation to make disbursements hereunder is further conditioned on the following: (1) The Borrower's plans, specifications and related documents for the Project shall be reviewed and approved by DEQ, as required by OAR Chapter 340, Division 054. (2) The Borrower has submitted documentation satisfactory to DEQ that the disbursement is for work that complies with plans, specifications, change orders and addenda approved by DEQ, in accordance with OAR Chapter 340, Division 054. I (3) The Borrower has submitted a copy of the awarded contract and bid documents (including a tabulation of all bids received) to DEQ for the portion of the Project costs that will be funded with the disbursement. (C) GENERAL PROVISIONS. The Borrower covenants with DEQ that: (1) Construction Manual. Unless stated otherwise in this Agreement, the Borrower shall comply with the requirements set forth in the Manual as in effect from time to time. DEQ will provide the Borrower with a copy of the Manual upon request. (2) Plans and Specifications. The Borrower shall obtain DEQ's review and approval of the Borrower's plans, specifications, and related documents for the Project, as required by OAR Chapter 340, Division 054, prior to any disbursement of Loan proceeds hereunder. (3) Change Orders. The Borrower shall submit all change orders to DEQ. The Borrower must submit prior to its execution any change order that exceeds $100,000 or will alter Project performance. The Borrower shall not use any Loan proceeds to pay for costs of any change order that DEQ has not approved in writing. This ARTICLE 6(C)(3) CITY OF ASHLAND: 811754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 16 shall not prevent the Borrower from using funds other than Loan proceeds to pay for a change order before DEQ approves it, but the Borrower bears the risk that DEQ will not approve the change order. (4) Inspections: Reports. The Borrower shall provide inspection reports during the construction of the Project as required by DEQ to ensure that the Project complies with approved plans and specifications. Qualified inspectors shall conduct these inspections under the direction of a registered civil, mechanical or electrical engineer, whichever is appropriate. DEQ or its representative(s) may enter property owned or controlled by the Borrower to conduct interim inspections and require progress reports sufficient to determine compliance with approved plans and specifications and with the Loan Agreement, as appropriate. (5) Asbestos and Other Hazardous Materials. The Borrower shall ensure that only persons trained and qualified for removal of asbestos or other Hazardous Materials will remove any asbestos or Hazardous Materials, respectively, which may be part of this Project. (6) Operation and Maintenance Manual. The Borrower shall submit to DEQ a draft Facility operation and maintenance manual before the Project is fifty percent (50%) complete. The Borrower shall submit to DEQ a final Facility operation and maintenance manual that meets DEQ's approval before the Project is ninety percent (90%) complete. (7) Project Performance Certification. The Borrower shall submit to DEQ draft performance standards before the Project is fifty percent (50%) complete. The Borrower shall submit to DEQ final performance standards that meet DEQ's approval before the Project is ninety percent (90%) complete. The Borrower shall submit to DEQ the following done in accordance with the Manual: (i) no later than 10.5 months after the Initiation of Operation (as that term is defined in OAR 340-054-0010(26)), a performance evaluation report based on the approved performance standards; (ii) within one year after the Project's Initiation of Operation, Project performance certification statement; and (iii) within two (2) months of submission of such Project performance certification statement, a corrective action plan for any Project deficiencies noted in said statement. (8) Alterations After Completion. The Borrower shall not materially alter the design or structural character of the Project after completing the Project without DEQ's written approval. (9) Project Initiation of Operations. (a) The Borrower shall notify DEQ of the Initiation of Operation no more than thirty (30) days after the actual Project Completion Date. (b) If the Project is completed, or is completed except for minor items, and the Project is operable, but DEQ has not received a notice of Initiation of Operation from the Borrower, DEQ may assign an Initiation of Operation date. CITY OF Aslu.Arm: R11754 LOAN AGREEMENT I I OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 17 (D) PROVISION APPLICABLE TO CONTRACTS AND SUBCONTRACTS AWARDED FOR THE PROJECT (1) Davis-Bacon Requirements. All contracts and subcontracts awarded as part of the Project shall comply with (1) the wage requirements of the Davis-Bacon Act, as amended, 40 U.S.C. §§3141 to 3144, 3146 and 3147 (2002), and (2) the requirements of the Prevailing Wage Rates for Public Works Projects in Oregon established under ORS 279C.800 through 279C.870 and OAR 839-025-0000 through 839-025-0540. The Borrower agrees that it will insert into any contract in excess of $2,000 for construction, and will cause its subcontractors to insert in any sub-contract in excess of $2,000 for construction, the Davis-Bacon language set forth in Part 1 of APPENDIX E, and Part 2 of APPENDIX E as applicable. (2) Retainage. The Borrower shall require a five percent (5%) retainage in all of its contracts related to the Project for an amount greater than One Hundred Thousand Dollars ($100,000). ARTICLE 7: DISCLAIMERS BY DEQ; LIMITATION OF DEQ'S LIABILITY (A) DISCLAIMER of ANY WARRANTY. DEQ EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE PROJECT, THE QUALITY OF MATERIALS SUPPLIED TO AND THAT BECOME A PART OF THE PROJECT, THE QUALITY OF THE WORKMANSHIP PERFORMED UPON THE PROJECT, OR THE EXTENT AND STAGE OF COMPLETION OF THE PROJECT. No such warranty or guarantee shall be implied by virtue of any inspection or disbursement made by DEQ. Any inspection done by DEQ shall be for its sole benefit. (B) DISCLAIMER OF LIABILITY OF DEQ. DEQ EXPRESSLY DISCLAIMS LIABILITY OF ANY KIND OR CHARACTER WHATSOEVER FOR PAYMENT OF LABOR OR MATERIALS OR OTHERWISE IN CONNECTION WITH THE COMPLETION OF THE PROJECT OR CONTRACTS ENTERED INTO BY THE BORROWER WITH THIRD PARTIES FOR THE COMPLETION OF THE PROJECT. All Project costs of labor, materials and construction, including any indirect costs, shall be the responsibility of and shall be paid by the Borrower. CITY of ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 18 (C) NONLIAmLrrY OF STATE. (1) The State and its officers, agents and employees shall not be liable to the Borrower or to any other party for any death, injury, damage, or loss that may result to any person or property by or from any cause whatsoever, arising out of any defects in the plans, design drawings and specifications for the Project, any agreements or documents between the Borrower and third parties related to the Project or any activities related to the Project. DEQ shall not be responsible for verifying cost-effectiveness of the Project, doing cost comparisons or reviewing or monitoring compliance by the Borrower or any other party with state procurement laws and regulations. (2) The Borrower hereby expressly releases and discharges DEQ, its officers, agents and employees from all liabilities, obligations and claims arising out of the Project work or under the Loan, subject only to exceptions previously agreed upon in writing by the parties. (3) Any findings by DEQ concerning the Project and any inspections or analyses of the Project by DEQ are for determining eligibility for the Loan and disbursement of Loan proceeds only. Such findings do not constitute an endorsement of the feasibility of the Project or its components or an assurance of any kind for any other purpose. (4) Review and approval of Facilities plans, design drawings and specifications or other documents by or for DEQ does not relieve the Borrower of its responsibility to properly plan, design, build and effectively operate and maintain the Facility as required by law, regulations, permits and good management practices. ARTICLE 8: DEFAULT AND REMEDIES (A) EVENTS OF DEFAULT. The occurrence of one or more of the following events constitutes an Event of Default, whether occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency: (1) The Borrower fails to make any Loan payment within thirty (30) days after the payment is scheduled to be made according to the repayment schedule; (2) Any representation or warranty made by the Borrower hereunder was untrue in any material respect as of the date it was made; (3) The Borrower becomes insolvent or admits in writing an inability to pay its debts as they mature or applies for, consents to, or acquiesces in the appointment of a trustee or receiver for the Borrower or a substantial part of its property; or in the absence of such application, consent, or acquiescence, a trustee or receiver is appointed for the Borrower or a substantial part of its property and is not discharged within sixty (60) days; or any bankruptcy, reorganization, debt arrangement or moratorium or any dissolution or liquidation proceeding is instituted by or against the Borrower and, if instituted against the Borrower, is consented to or acquiesced in by the Borrower or is not dismissed within twenty (20) days; CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 19 (4) As a result of any changes in the United States Constitution or the Oregon Constitution or as a result of any legislative, judicial, or administrative action, any part of this Loan Agreement becomes void, unenforceable or impossible to perform in accordance with the intent and purposes of the parties hereto or is declared unlawful; (5) The Borrower defaults in the performance or observance of any covenants or agreements contained in any loan documents between itself and any lender or lenders, and the default remains uncured upon the expiration of any cure period provided by said loan documents; or (6) The Borrower fails to cure non-compliance in any material respect with any other covenant, condition, or agreement of the Borrower hereunder, other than as set forth in (1) through (5) above within a period of thirty (30) days after DEQ provides notice of the noncompliance. (B) REMEDIES. If DEQ determines that an Event of Default has occurred, DEQ may, without further notice: (1) Declare the Outstanding Loan Amount plus any unpaid accrued interest, fees and any other amounts due hereunder immediately due and payable; (2) Cease making disbursement of Loan proceeds or make some disbursements of Loan proceeds and withhold or refuse to make other disbursements; (3) Appoint a receiver, at the Borrower's expense, to operate the Facility that produces the pledged revenues and collect the Gross Revenues; (4) Set and collect utility rates and charges; (5) Pay, compromise or settle any liens on the Facility or the Project or pay other sums'required to be paid by the Borrower in connection with the Project, at DEQ's discretion, using the Loan proceeds and such additional money as may be required. If DEQ pays any encumbrance, lien, claim, or demand, it shall be subrogated, to the extent of the amount of such payment, to all the rights, powers, privileges, and remedies of the holder of the encumbrance, lien, claim, or demand, as the case may be. Any such subrogation rights shall be additional cumulative security for the amounts due under this Loan Agreement; (6) Direct the State Treasurer to withhold any amounts. otherwise due to the Borrower from the State of Oregon and, to the extent permitted by law, direct that such funds be applied to the amounts due DEQ under this Loan Agreement and be deposited into the SRF; and (7) Pursue any other legal or equitable remedy it may have. ARTICLE 9: DEFINITIONS (A) "BORROWER" means the public agency (as defined in ORS 468.423(2)) shown as the "Borrower" in Article 1(A) of this Agreement. CITY OF AsHLANO: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 20 (B) "COMPLETION DATE" means the date on which the Project is completed. If the Project is a planning project, the Completion Date is the date on which DEQ accepts the planning project. If the Project is a design project, the Completion Date is the date on which the design project is ready for the contractor bid process. If the Project is a construction project, the Completion Date is the date on which the construction project is substantially complete and ready for Initiation of Operation. (C) "COSTS OF THE PROJECT" means expenditures approved by DEQ that are necessary to construct the Project in compliance with DEQ's requirements and may include but are not limited to the following items: (1) Cost of labor and materials and all costs the Borrower is required to pay under the terms of any contract for the design, acquisition, construction or installation of the Project; (2) Engineering fees for the design and construction of the Project. (3) The costs of surety bonds and insurance of all kinds that may be required or necessary during the course of completion of the Project; (4) The legal, financing and administrative costs of obtaining the Loan and completing the Project; and (5) Any other costs approved in writing by DEQ. (D) "CWSRF PROGRAM" or "CWSRF" means the Clean Water State Revolving Fund Loan Program, a loan program administered by DEQ under ORS 468.423 to 468.440. (E) "DEQ" means the Oregon Department of Environmental Quality. (F) "DIRECTOR" means the Director of DEQ or the Director's authorized representative. (G) "FACILITY" means all property owned or used by the Borrower to provide wastewater collection, treatment and disposal services, of which the Project is a part. (H) "FINAL LOAN AMOUNT" means the total of all Loan proceeds disbursed to the Borrower under the Loan Agreement, determined on the date on which the Borrower indicates that no fiuther Loan funds will be requested, all eligible expenditures have been reimbursed from the Loan proceeds, or all Loan proceeds have been disbursed hereunder, whichever occurs first. (I) "GROSS REvENuEs" means all fees and charges resulting from operation of the Facility and any interest earnings thereon; provided however, Gross Revenues does not include: the proceeds of any grants; the proceeds of any borrowings for capital improvements; the proceeds of any liability insurance; or the proceeds of any casualty insurance which the Borrower intends to and does utilize for repair or replacement of the Facility or a part thereof. CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 21 (,I) "HAzARDous MATERIALS" means and includes flammable explosives, radioactive materials, asbestos and substances defined as hazardous materials, hazardous substances or hazardous wastes in the Comprehensive Environmental Response, Compensation, and Liability Act, as amended by the Superfund Amendments and Reauthorization Act (42 U.S.C. Section 9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901, et seq.), and regulations promulgated thereunder. (I) "LOAN" means the loan made pursuant to this Loan Agreement. (L) "LOAN AGREEMENT" or "AGREEMENT" means this loan agreement and its exhibits, appendices, schedules and attachments (which are by this reference incorporated herein), and any amendments thereto. (NI) "LOAN AMOUNT" means the maximum amount DEQ agrees to loan the Borrower hereunder. (N) "LOAN RESERVE ACCOUNT" means the account described in ARTICLE 5(c)(2). (O) "LOBBYING" means influencing or attempting to influence a member, officer or employee of a governmental agency or legislature in connection with the awarding of a government contract, the making of a government grant or loan or the entering into of a cooperative agreement with such governmental entity or the extension, continuation, renewal, amendment or modification of any of the above. (P) "MANUAL" means the CWSRF Manual for Construction Projects. (Q) "NET OPERATING REVENUES" means the Gross Revenues less the Operating Expenses for the Facility. (R) "OPERATING EXPENSES" means all direct and indirect expenses incurred for operation, maintenance and repair of the Facility, including but is not limited to administrative expenses, legal, financial and accounting expenses, insurance premiums, claims (to the extent that monies are not available from insurance proceeds), taxes, engineering expenses relating to operation and maintenance, payments and reserves for pension, retirement, health, hospitalization, and sick leave benefits, and any other similar expenses to be paid to the extent properly and directly attributable to operations of the Facility. Operating expenses include an appropriate amount for reserves for repair and replacement of the Facility based on the expected life of the collection, treatment and disposal facilities. (S) "OUTSTANDING LOAN AMOUNT" means, as of any date, the sum of all disbursements to the Borrower hereunder less the sum of all Loan principal payments received by DEQ. (I) "PROJECT" means the facilities, activities or documents described in ARTICLE 1(E) and (F). (U) "REPAYMENT PERIOD" means the repayment period ending on the date specified in ARTICLE 1(H) which date shall not in any event be later than twenty (20) years after the Completion Date. CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 22 (V) "SRFe1 means the Water Pollution Control Revolving Fund established under ORS 468.427, also known as the State Revolving Fund. (W) "STATE" means the State of Oregon. ARTICLE 10: MISCELLANEOUS (A) NOTICES. All notices, payments, statements, demands, requests or other communications under this Loan Agreement by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if delivered by personal delivery, by certified mail, return receipt requested, or by facsimile transmission, and, if to the Borrower, delivered, addressed or transmitted to the location or number listed in ARTICLE 1(B), and if to DEQ, delivered, addressed or transmitted to: Clean Water State Revolving Fund Loan Program Water Quality Division Department of Environmental Quality 700 NE Multnomah Street, Suite 600 Portland, Oregon 97232 Fax (503) 229-6037 or to such other addresses or numbers as the parties may from time to time designate. Any notice or other communication so addressed and mailed shall be deemed to be given five (5) days after mailing. Any notice or other communication delivered by facsimile shall be deemed to be given when receipt of the transmission is generated by the transmitting machine. To be effective against DEQ, such facsimile transmission must be confirmed by telephone notice to DEQ's CWSRF Program Coordinator. Any notice or other communication by personal delivery shall be deemed to be given when actually delivered. (B) WAIVERS AND RESERVATION OF RIGHTS. (1) DEQ's waiver of any breach by the Borrower of any term, covenant or condition of this Loan Agreement shall not operate as a waiver of any subsequent breach of the same or breach of any other term, covenant, or condition of this Loan Agreement. DEQ may pursue any of its remedies hereunder concurrently or consecutively without being deemed to have waived its right to pursue any other remedy. (2) Nothing in this Loan Agreement affects DEQ's right to take remedial action, including, but not limited to, administrative enforcement action and action for breach of contract against the Borrower, if the Borrower fails to carry out its obligations under this Loan Agreement. (C) TIME Is OF THE ESSENCE. The Borrower agrees that time is of the essence under this Loan Agreement. (D) RELATIONSHIP OF PARTIES. The parties agree and acknowledge that their relationship is that of independent contracting parties, and neither party hereto shall be deemed an agent, partner, joint venturer or related entity of the other by reason of this Loan Agreement. Crrr of ASHLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY . CLEAN WATER STATE REVOLVING FUND PAGE 23 (E) NO THIRD PARTY BENEFICIARIES. DEQ and the Borrower are the only parties to this Loan Agreement and are the only parties entitled to enforce the terms of this Loan Agreement. Nothing in this Loan Agreement gives, is intended to give, or shall be construed to give or provide any benefit or right not held by or made generally available to the public, whether directly, indirectly or otherwise, to third persons unless such third persons are individually identified by name herein and expressly described as intended beneficiaries of the terms of this Loan Agreement. Any inspections, audits, reports or other assurances done or obtained, or approvals or consents given, by DEQ are for its benefit only for the purposes of administering this Loan and the CWSRF Program. (F) ASSIGNMENT. DEQ shall have the right to transfer the Loan or any part thereof, or assign any or all of its rights under this Loan Agreement, at any time after execution of this Loan Agreement upon written notice to the Borrower. Provisions of this Loan Agreement shall inure to the benefit of DEQ's successors and assigns. This Loan Agreement or any interest therein may be assigned or transferred by the Borrower only with DEQ's prior written approval (which consent may be withheld for any reason), and any assignment or transfer by the Borrower in contravention of this ARTICLE IO(F) shall be null and void. (G) DEQ NOT REQUIRED To ACT. Nothing contained in this Loan Agreement requires DEQ to incur any expense or to take any action hereunder in regards to the Project. (I3) FURTHER ASSURANCES. The Borrower and DEQ agree to execute and deliver any written instruments necessary to carry out any agreement, term, condition or assurance in this Loan Agreement whenever a party makes a reasonable request to the other party for such instruments. (1) VALIDITY AND SEVERABILITY; SURVIVAL. If any part, term, or provision of this Loan Agreement or of any other Loan document shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by either party, the validity of the remaining portions, terms and provisions shall not be affected, and all such remaining portions, terms and provisions shall remain in full force and effect. Any provision of this Agreement which by its nature or terms is intended to survive termination, including but not limited to ARTICLE 5(E), shall survive termination of this Agreement. (J) NO CONSTRUCTION AGAINST DRAFTER. Both parties acknowledge that they are each represented by and have sought the advice of counsel in connection with this Loan Agreement and the transactions contemplated hereby and have read and understand the terms of this Loan Agreement. The terms of this Loan Agreement shall not be construed against either party as the drafter hereof. (I) HEADINGS. All headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Loan Agreement. (L) ATTORNEYS' FEES AND EXPENSES. In any action or suit to enforce any right or remedy under this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys' fees and costs, to the extent permitted by law. (M) CHOICE OF LAW; DESIGNATION OF FORUM; FEDERAL FORUM. (1) The laws of the State of Oregon (without giving effect to its conflicts of law principles) CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENviRoNMENTAL QUALITY CLEAN WATER STATE. REVOLVING FUND PAGE 24 govern all matters arising out of or relating to this Agreement, including, without limitation, its validity, interpretation, construction, performance, and enforcement. (2) Any party bringing a legal action or proceeding against any other party arising out of or relating to this Agreement shall bring the legal action or proceeding in the Circuit Court of the State of Oregon for Marion County (unless Oregon law requires that it be brought and conducted in another county). Each party hereby consents to the exclusive jurisdiction of such court, waives any objection to venue, and waives any claim that such forum is an inconvenient forum. (3) Notwithstanding ARTICLE I O(M)(2), if a claim must be brought in a federal forum, then it must be brought and adjudicated solely and exclusively within the United States District Court for the District of Oregon. This ARTICLE I O(Ivl)(3) applies to a claim brought against the State of Oregon only to the extent Congress has appropriately abrogated the State of Oregon's sovereign immunity and is not consent by the State of Oregon to be sued in federal court. This ARTICLE IOM(3) is also nota waiver by the State of Oregon of any form of defense or immunity, including but not limited to sovereign immunity and immunity based on the Eleventh Amendment to the Constitution of the United States. (N) CouNTERPARTs. This Loan Agreement may be executed in any number of counterparts, each of which is deemed to be an original, but all together constitute but one and the same instrument. (O) ENTIRE AGREEMENT; AMENDMENTS. This Loan Agreement, including all appendices and attachments that are by this reference incorporated herein, constitutes the entire agreement between the Borrower and DEQ on the subject matter hereof, and it shall be binding on the parties thereto when executed by all the parties and when all approvals required to be obtained by DEQ have been obtained. This Loan Agreement, including all related Loan documents and instruments, may not be amended, changed, modified, or altered without the written consent of the parties. CITY of ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 25 CITY OF ASHLAND By: Authorized Officer Date Typed Name: Title: STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENVIRONMENTAL QUALITY By: Lydia Emer, Operations Division Administrator Date CITY OF ASHLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 26 APPENDEY A: PRELIMINARY REPAYMENT SCHEDULE Due PAYMENT Principal Date Pmts Principal Interest Fees Total Balance 4,829,000 8/1/2021 1 0 31,500 0 31,500 4,829,000 2/1/2022 2 112,448 24,145 24,145 160,738 4,716,552 8/1/2022 3 113,010 23,583 0 136,593 4,603,542 2/1/2023 4 113,575 23,018 23,018 159,611 4,489,967 8/1/2023 5 114,143 22,450 0 136,593 4,375,824 2/1/2024 6 114,714 21,879 21,879 158,472 4,261,110 8/1/2024 7 115,287 21,306 0 136,593 4,145,823 2/1/2025 8 115,864 20,729 20,729 157,322 4,029,959 8/1/2025 9 116,443 20,150 0 136,593 3,913,516 2/1/2026 10 117,025 19,568 19,568 156,161 3,796,491 8/112026 11 117,611 18,982 0 136,593 3,678,880 2/1/2027 12 118,199 18,394 18,394 154,987 3,560,681 8/112027 13 118,790 17,803 0 136,593 3,441,891 21112028 14 119,384 17,209 17,209 153,802 3,322,507 811/2028 15 119,980 16,613 0 136,593 3,202,527 2/1/2029 16 120,580 16,013 16,013 152,606 3,081,947 8/1/2029 17 121,183 15,410 0 136,593 2,960,764 2/1/2030 18 121,789 14,804 14,804 151,397 2,838,975 8/1/2030 19 122,398 14,195 0 136,593 2,716,577 2/1/2031 20 123,010 13,583 13,583 150,176 2,593,567 8/1/2031 21 123,625 12,968 0 136,593 2,469,942 2/1/2032 22 124,243 12,350 12,350 148,943 2,345,699 8/1/2032 23 124,865 11,728 0 136,593 2,220,834 2/1/2033 24 125,489 11,104 11,104 147,697 2,095,345 8/1/2033 25 126,116 10,477 0 136,593 1,969,229 2/1/2034 26 126,747 9,846 9,846 146,439 1,842,482 8/1/2034 27 127,381 9,212 0 136,593 1,715,101 2/1/2035 28 128,017 8,576 8,576 145,169 1,587,084 8/1/2035 29 128,658 7,935 0 136,593 1,458,426 2/1/2036 30 129,301 7,292 7,292 143,885 1,329,125 8/1/2036 31 129,947 6,646 0 136,593 1,199,178 2/1/2037 32 130,597 5,996 5,996 142,589 1,068,581 8/1/2037 33 131,250 5,343 0 136,593 937,331 2/1/2038 34 131,906 4,687 4,687 141,280 805,425 8/1/2038 35 132,566 4,027 0 136,593 672,859 211/2039 36 133,229 3,364 3,364 139,957 539,630 8/1/2039 37 133,895 2,698 0 136,593 405,735 2/1/2040 38 134,564 2,029 2,029 138,622 271,171 8/1/2040 39 135,237 1,356 0 136,593 135,934 2/1/2041 40 135,934 680 680 137,294 0 TOTALS 4,829,000 529,648 255,266 5,613,914 CITY OF ASHLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 27 APPENDIX B: ESTIMATED CWSRF LOAN DISBURSEMENT SCHEDULE Loan funds are expected to be available based on the following Project schedule: 1 167,467 5/31/2017 2 332,967 3/1/2018 3 332,967 5/112018 4 332,967 7/1/2018 5 332,967 911/2018 6 332,967 11/1/2018 7 332,967 1/1/2019 8 332,967 3/112019 9 332,967 5/1/2019 10 332;967 7/1/2019 11 ' 332,967 9/1/2019 12 332,967 11/1/2019 13 332,967 1/1/2020 14 332,967 3/112020 15 332,967 5/1/2020 i CrrY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 28 APPENDIX C: DBE GOOD FAITH EFFORTS At a minimum the Borrower or its prime contractor must take six affirmative steps (which apply to any procurement of construction, supplies, equipment or services) to demonstrate good faith effort to utilize minority (MBE), women-owned (WBE) and small (SBE) businesses. The six steps are: 1) To include qualified small, minority and women's businesses on solicitation lists; 2) To assure that small, minority, women's businesses are solicited whenever they are potential sources; 3) To divide total requirements, whenever economically feasible, into smaller tasks or quantities to permit maximum participation by small, minority or women's businesses; 4) To establish delivery schedules whenever the requirements of the work permit, which will encourage participation by small, minority and women's businesses; 5) To use the services and assistance of the Small Business Administration (http://pro-net.sba.gov) and the Office of Minority Business Enterprise of the U.S. Department of Commerce (http://www.mbda.gov) to identify appropriate small, minority and women businesses; and 6) To require subcontractors to take all of the affirmative action steps described above and set forth in 40 CFR 35.3145(d)) in any contract awards or procurements. The Borrower shall, and shall cause its contractors to, document compliance with the above requirements on forms found at Tab 6 of the Manual for Construction Projects. Additional resources available to recipients and contractors include the following: EPA Office of Small and Disadvantaged Business Utilization: Phone: 206 - 553 - 2931 Web Site: www.epa.gov/osdbu Oregon Office of Minority, Women and Emerging Small Business 350 Winter Street N.E., Room 300 Salem, OR 97301-3878 Phone: 503 - 947 - 7922 Web Site: www.cbs.state.or.us/omwesb CITY OF ASHLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 29 Appendix D: RESERVED CITY OF ASHLAND: R1 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 30 APPENDIX E: DAVIS-BACON PROVISION Part 1 (1) Minimum wages. (i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section I (b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis- Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. Subrecipients may obtain wage determinations from the U.S. Department of Labor's web site, www.dol.gov. (ii)(A) The subrecipient(s), on behalf of EPA, shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The State award official shall approve a request for an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by,the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. CITY of ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 31 (B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), documentation of the action taken and the request, including the local wage determination shall be sent by the subrecipient (s) to the State award official. The State award official will transmit the request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of receipt and so advise the State award official or will notify the State award official within the 30-day period that additional time is necessary. (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the subrecipient(s) do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including the views of all interested parties and the recommendation of the State award official, to the Administrator for determination. The request shall be sent to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt of the request and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary. (D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii)(B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (2) Withholding. The subrecipient(s), shall upon written request of the EPA Award Official or an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENvIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 32 by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased. (3) Payrolls and basic records. (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section I (b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section I (b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing. such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. (ii)(A) The contractor shall submit weekly, for each week in which any contract work is performed, a copy of all payrolls to the subrecipient, that is, the entity that receives the sub-grant or loan from the State capitalization grant recipient. Such documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29 CFR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on the weekly payrolls. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://www.dol.aov/esa/whd/forms/wh347instr.html or its successor site. The prime contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s) for transmission to the State or EPA if requested by EPA , the State, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the subrecipient(s). 'The correct website address is as follows: http://webapps.dol.gov/librarvforms/FormsByNum.asp CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 33 (B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the, classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph (a)(3)(ii)(B) of this section. (D) The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the State, EPA or the Department of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. (4) Apprentices and trainees- (i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be Crrv OF ASHLAND: RI 1754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 34 greater than the ratio permitted to the contractor as to the entire work force under the registered program. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level of progress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which has received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the full amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for apprentices. Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conformity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 35 (5) Compliance with Copeland Act requirements. The contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract. (6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7) Contract termination; debarment. A breach of the contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. (8) Compliance with Davis-Bacon and Related Act requirements. All rulings and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract. (9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, the U.S. Department of Labor, or the employees or their representatives. (10) Certification of eligibility. (i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (iii) The penalty for making false statements is prescribed in the U.S. Criminal Code, 18 U.S.C. 1001. CrrY of AsHLAND: R11754 LOAN AGREEvfENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 36 Part 2 Contract Provision for Contracts in Excess of $100,000. (a) Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in paragraphs (a)(1), (2), (3), and (4) of this section in full in any contract in an amount in excess of $100,000 and subject to the overtime provisions of the Contract Work Hours and Safety Standards Act. These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of.the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a)(1) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a)(1) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a)(1) of this section. (3) Withholding for unpaid wages and liquidated damages. The subrecipient shall upon the request of the EPA Award Official or an authorized representative of the Department of Labor, shall withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (a)(2) of this section. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a)(1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a)(1) through (4) of this section. (b) In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5. 1, the Subrecipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 37 them for a period of three years from the completion of the contract for all laborers and mechanics, including guards and watchmen, working on the contract. Such records shall contain the name and address of each such employee, social security number, correct classifications, hourly rates of wages paid, daily and.weekly number of hours worked, deductions made, and actual wages paid. Further, the Subrecipient shall insert in any such contract a clause providing hat the records to be maintained under this paragraph shall be made available by the contractor or subcontractor for inspection, copying, or transcription by authorized representatives of the Oregon Department of Environmental Quality and the Department of Labor, and the contractor or subcontractor will permit such representatives to interview employees during working hours on the job. 5. Compliance Verification (a) The subrecipient shall periodically interview a sufficient number of employees entitled to DB prevailing wages (covered employees) to verify that contractors or subcontractors are paying the appropriate wage rates. As provided in 29 CFR 5.6(a)(6), all interviews must be conducted in confidence. The subrecipient must use Standard Form 1445 (SF 1445) or equivalent documentation to memorialize the interviews. Copies of the SF 1445 are available from EPA on request. (b) The subrecipient shall establish and follow an interview schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, the subrecipient should conduct interviews with a representative group of covered employees within two weeks of each contractor or subcontractor's submission of its initial weekly payroll data and two weeks prior to the estimated completion date for the contract or subcontract. Subrecipients must conduct more frequent interviews if the initial interviews or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB . Subrecipients shall immediately conduct necessary interviews in response to an alleged violation of the prevailing wage requirements. All interviews shall be conducted in confidence. (c) The subrecipient shall periodically conduct spot checks of a representative sample of weekly payroll data to verify that contractors or subcontractors are paying the appropriate wage rates. The subrecipient shall establish and follow a spot check schedule based on its assessment of the risks of noncompliance with DB posed by contractors or subcontractors and the duration of the contract or subcontract. At a minimum, if practicable, the subrecipient should spot check payroll data within two weeks of each contractor or subcontractor's submission of its initial payroll data and two weeks prior to the completion date the contract or subcontract. Subrecipients must conduct more frequent spot checks if the initial spot check or other information indicates that there is a risk that the contractor or subcontractor is not complying with DB. In addition, during the examinations the subrecipient shall verify evidence of fringe benefit plans and payments thereunder by contractors and subcontractors who claim credit for fringe benefit contributions. (d) The subrecipient shall periodically review contractors and subcontractors use of apprentices and trainees to verify registration and certification with respect to apprenticeship and training programs approved by either the U.S Department of Labor or a state, as appropriate, and that contractors and subcontractors are not using disproportionate numbers of, laborers, trainees and Crrr oe ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 38 apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and (c) above. (e) Subrecipients must immediately report potential violations of the DB prevailing wage requirements to the EPA DB contact listed above and to the appropriate DOL Wage and Hour District Office listed at http://www.dol.gov/esa/contacts/whd/america2.htm.2 2 The correct website address is as follows: http://www.dol.gov/whd/america2.htm#oregon CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 39 APPENDIX F EQUAL EMPLOYMENT OPPORTUNITY During the performance of this contract the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. (6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contract or with any of such rules, regulations, or orders, this contract may be canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 40 (7) The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided, however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States. CnY of ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 41 APPENDIX G: CERTIFICATION REGARDING LOBBYING (Contracts in Excess of $100,000.00) The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Borrower, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signed Title Date Recipient CITY OF ASHLAND: R11754 LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 1 CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT NO. R11751 AMENDMENT NO.1 CITY OF ASHLAND This Amendment No. 1 to Loan Agreement No. R11751 (as amended "Loan Agreement") is executed between the STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENVIRONMENTAL QUALITY (''DEQ") and City of Ashland (the "Borrower"), effective as of the Effective Date of Amendment indicated below. Capitalized terms used in this Amendment which are not defined herein shall have the meanings assigned to them in the Loan Agreement. The purpose of this amendment is to reduce the total loan amount to the amount disbursed for the Point Source project associated with the borrower's Sponsorship Option loan pair. Date of Original Agreement: July 16, 2013 Effective Date of Amendment No.: January 8, 2018 The parties agree as follows: 1. ARTICLE 1(C) is amended and restated as follows: "(C) LOAN AMOUNT: $1,645,280." 2. The second sentence of ARTICLE 5(C)(1) is amended and restated as follows: "Until the Final Loan Amount is calculated, the Loan Reserve Requirement is $79,073." 3. The attached "Appendix A: Repayment Schedule" replaces the current "Appendix A: Repayment Schedule". Except as expressly amended above, the terms and conditions of the Loan Agreement shall remain in full force and effect. CITY OF ASHLAND: R11751 LOAN AGREEMENT AMENDMENT # 1 OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 2 CITY OF ASHLAND By: Date: Typed Name: Title: STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENVIRONMENTAL QUALITY By: Date: Lydia Emer, Administrator Operations Division CITY OF ASHLAND: R1 1751 LOAN AGREEMENT AMENDMENT # 1 OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 3 APPENDIX A: REPAYMENT SCHEDULE Due PAYMENT Principal Date Pmt# Principal Interest Fees Total Balance 1,645,280 8/1/2018 1 0 82,760 0 82,760 1,645,280 2/1/2019 2 52,862 8,226 8,226 69,314 1,592,418 8/1/2019 3 53,126 7,962 0 61,088 1,539,292 2/ 1 /2020 4 53,392 7,696 7,696 68,784 1,485,900 8/1/2020 5 53,658 7,430 0 61,088 1,432,242 2/11/2021 6 53,927 7,161 7,161 68,249 1,378,315 8/ 1 /2021 7 54,196 6,892 0 61,088 1,324,119 2/ 1 /2022 8 54,467 6,621 6,621 67,709 1,269,652 8/1/2022 9 54,740 6,348 0 61,088 1,214,912 2/ 1 /2023 10 55,013 6,075 6,075 67,163 1,159, 899 8/ 1 /2023 11 55,289 5,799 0 61,088 1,104, 610 2/ 1 /2024 12 55,565 5,523 5,523 66,611 1,049,045 8/ 1 /2024 13 55,843 5,245 0 61,088 993,202 2/ 1 /2025 14 56,122 4,966 4,966 66,054 937,080 8/ 1 /2025 15 56,403 4,685 0 61,088 880,677 2/ 1 /2026 16 56,685 4,403 4,403 65,491 823,992 8/ 1 /2026 17 56,968 4,120 0 61,088 767,024 2/ 1 /2027 18 57,253 3,835 3,835 64,923 709,771 8/ 1 /2027 19 57,539 3,549 0 61,088 652,232 2/ 1 /2028 20 57,827 3,261 3,261 64,349 594,405 8/ 1 /2028 21 58,116 2,972 0 61,088 536,289 2/ 1 /2029 22 58,407 2,681 2,681 63,769 477,882 8/ 1 /2029 23 58,699 2,389 0 61,088 419,183 2/ 1 /2030 24 58,992 2,096 2,096 63,184 360,191 8/ 1 /2030 25 59,287 1,801 0 61,088 300,904 2/ 1 /2031 26 59,583 1,505 1,505 62,593 241,321 8/1/2031 27 59,881 1,207 0 61,088 181,440 2/ 1 /2032 28 60,181 907 907 61,995 121,259 8/ 1 /2032 29 60,482 606 0 61,088 60,777 2/ 1 /2033 30 60,777 304 304 61,385 0 1,645,280 209,025 65,260 1,919,565 CITY OF ASHLAND: R 11751 LOAN AGREEMENT AMENDMENT 1 CLEAN WATER STATE REVOLVING FUND LOAN AGREEMENT NO- 811751 BETWEEN THE STATE OF OREGON ACTING BY AND THROUGH ITS DEPARTMENT OF ENVIRONMENTAL QUALITY AND CTTY OF ASHLAND e OREGONDEPARTMENTOF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE2 TABLE OF CONTENTS ARTICLE 1: THE LOAN - SPECIFIC TERMS ....................................................................................3 ARTiCLE2: GENERAL LOAN PROVISIONS' ......................................................................................4 ARTICLE 3: GENERAL RE PRESENTATIONS, WARRANTIES AND COVENANTS ................................7 ARTICLE 4: CONDITIONS TO LOAN ......................................................................_........................8 - ARTICLE 5: COVENANTS OF BORROWER ..:.............................................................10 . ARTICLE 6: REPRESENTATIONS, WARRANTIES, COVENANTS AND CONDITIONS RELATINGTO ' CONSTRUCTION PROJECTS ONLY 14 ARTICLE 7: DisCLAIMER5 BY DEQ; LIMITATIONS ON DEQ'S LIABILITY ARTICLE 8: DEFAULTANDRomDIES ..........................................................................................18 ARTICLE 9: DEFINITIONS 19 .ARTICLE 10: MISCELLANEOUS 21 APPENDIX A: REPAYMENTSCHEDULE 25 APPENDDIB: ESTIMATED CWSRFLOAN DISBURSEMENTSCHEDULE .....................................26 APPENDIX C: DBE GOOD FAITH EFFORTS .................................................................................27 APPENDIXD: APPLICABLE FEDERALAUTHORITIES AND LAWS ("CROSS-CUTTERS^)............ 28 APPENDIX E: DAVIS-BACON PROVISION .......................................................:.......29 APPENDIX F: EQUAL EMPLOYMENT OPPORTUNITY .................................................38 APPENDIX G: CERTMCATI ON REGARDING LOBBYING .............................40 CITY OF ASHLAND: 811751:2718473 (8/15/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 3 THIS LOAN AGREEMENT is made and entered into as of the date it is fully executed by both parties (and in the case of the State, approved by the Attorney General's Office, if required) and is by and between the State of Oregon, acting by and through its Department of Environmental Quality ("DEQ"), and the Borrower (as defined below). Unless the context requires otherwise, capitalized terms not defined below shall have the meanings assigned to them by ARTICLE 9 of this Loan Agreement. The reference number.for the Loan made pursuant to this Loan Agreement is Loan No. R11751. DEQ agrees to make, and Borrower agrees to accept, the Loan on the terms and subject to the conditions set forth below. ARTICLE I: THE LOAN - SPECIFIC TERMS DEQ agrees to make the Loan on the following terms and conditions: (A) BORROWER.: City of Ashland. (B) BORROWER's ADDRESS: City of Ashland 20 E. Main Street Ashland, Oregon 97520 . Fax 541-488-6006 (C) LOAN AMOUNT: $4,549,691. (D) TYPE AND PURPOSE OF LOAN. The Loan is a "Revenue Secured Loan" made by DEQ pursuant to OAR Section 340-054-0065(2) for the purpose of financing the Project. This is a sponsorship option loan, issued to the Borrower under OAR 340-054-0022(6)(c). (E) PROJECT TITLE: Wastewater Membrane System Upgrade. (1(+) DESCRIPTION OF THE PROJECT: Purchase and installation of new membrane system upgrade at the wastewater treatment facility, per the Borrower's application dated January 8, 2009. This is also a sponsorship option Loan, which includes riparian restoration work within the Bear Creek.Watershed.. (G) INTEREST RATE: One and 00/100 percent (1.00°/x) per annum. Calculation of interest is also discussed in ARTICLE 2(E) and in ARTICLE 2(F)(4) of this Agreement. (H} REPAYMENT PERIOD: An interest-only payment shall be made September 1, 2015 and payments thereafter shall be made according to the schedule at Appendix A. Repayment of amounts owed for the wastewater membrane system upgrade shall end no later than (a) fifteen (15) years after the Completion Date or (b) fifteen (15) years after the estimated Completion Date set forth in ARTICLE 3(A)(10), whichever date is earlier. (1) TERMS OF REPAYMENT: An interest-only payment within six months after the estimated Project Completion Date set forth in ARTICLE 3(A)(10) and thereafter semi-annual CITY OF ASHLAND: R11751: 2718473 (8115111) LoAN AGREPNENr OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 4 payments of principal and interest in accordance with APPENDIX A and ARTICLE 2(F) of this Agreement. (J) PLEDGE: The Borrower hereby grants to DEQ a security interest in and irrevocably pledges its Net Operating Revenues to secure payment of and to pay the amounts due under this Loan Agreement.' The Net Operating Revenues so pledged and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 287A.310. The Borrower represents and warrants that the pledge of Net Operating Revenues hereby made by the Borrower complies with, and shall be valid and binding from the date of this Agreement pursuant to, ORS 287A310. The Borrower covenants with DEQ. and any assignee of this Agreement that except as otherwise expressly provided herein, the Borrower shall not issue any other obligations which have apledge or lien on the Net Operating Revenues superior to or on a parity with the pledge herein granted without the written permission of DEQ. This Loan is aparity obligation with all other.CWSRF loans between DEQ and the Borrower; provided, however, that this provision shall not affect the priority. that prior CWSRF loans are entitled to in relation to any loans between Borrower and any third parties. (Is) ANNUAL.1[~ EE: An annual fee of 0.5% of the Outstanding Loan Amount (as determined prior to the posting of the payment due on that date) is due during the Repayment Period commencing with the second.payment date hereunder and annually thereafter. Annual fee payments due during the calendar years 2013 and 2014, if any, will be 0.25% of the Outstanding Loan Amount. ARTICLE 2: GENERAL LOAN PROVISIONS (A) AGREEMENT OF DEQ To LOAN. DEQ agrees to loan the Borrower an amount not to exceed the Loan Amount, subject to the terms and conditions of this Loan Agreement, but solely from funds available to DEQ in the Water Pollution Control Revolving Fund for its Clean Water State Revolving Fund program. This Loan Agreement is given as evidence of a Loan to the Borrower made by DEQ pursuant to ORS Chapters 190, 286A, 287A, and 468, and OAR Chapter 340, all as amended from time to time, consistent with the express provisions hereof. (B) AVAILABILITY OF FUNDS. DEQ's obligation to make the Loan described in this Agreement is subject to the availability of funds in the Water Pollution Control Revolving Fund for its CWSRF program, and DEQ shall have no liability to the Borrower or any other party if such funds are not available or are not available in amounts sufficient to fund the entire Loan described herein, as determined by DEQ in the reasonable exercise of its administrative discretion. Funds may not be available ahead of the estimated schedule of disbursements . submitted by the Borrower, which is attached as APPENDIX B. This schedule may be revised from time to time by the parties without the necessity of an amendment by replacing the then current APPENDrx B with an updated APPENDix B which is dated and signed by both parties. (C) DISBURSEMENT OF LOAN PROCEEDS. CrrY OF AsIii- AND: RI 1751:2719473 (8/15/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 5 (1) Project Account(s). Loan proceeds (as and when disbursed by DEQ to the Borrower) shall be deposited in a Project account(s). The Borrower shall maintain Project account(s) as segregated account(s). Funds in the Project account(s) shall only be used to pay for Project costs, and all earnings on the Project account(s) shall be credited to the account(s). (2) Documentation of Expenditures. The Borrower shall provide DEQ with written evidence of materials and labor furnished to and performed upon the Project and such receipts for the payment of the same, releases, satisfactions and other signed statements and forms as DEQ may reasonably require. DEQ will disburse funds to pay Project costs only after the Borrower has provided documentation satisfactory to DEQ that such Project costs have been incurred and qualify for reimbursement hereunder: (3) Adjustments and Corrections. DEQ may at any time review and audit requests for disbursement and make adjustments for, among other things, ineligible expenditures, mathematical errors, items not built or bought, unacceptable work and other discrepancies. Nothing in this Agreement requires DEQ to pay any amount for labor or materials unless DEQ is satisfied that the claim therefor is reasonable and that the Borrower actually expended and used such labor or materials in the Project. In addition, DEQ shall not. be required to make any disbursement which would cause the total of all disbursements made hereunder (including the requested disbursement) to be greater than the total estimated cost of the work completed at the time of the disbursement, as determined by DEQ_ (4) Contract Retainage Disbursement. DEQ will not disburse Loan proceeds to cover contractor retainage unless the Borrower is disbursing retainage to an escrow account and provides proof of the deposit, or until the Borrower provides proof that it paid retained funds to the contractor. (D) AGREEMENT OF BORROWER TO REPAY. The Borrower agrees to repay all amounts owed on this Loan as described in ARTICLE 1(I) and ARTICLE 2(F) in U.S. Dollars in immediately available funds at the place listed for DEQ in ARTICLE I O(A). In any case, the Borrower agrees to repay all amounts owed on this Loan within the Repayment Period. (E) INTEREST. Interest will accrue at the rate specified in ARTICLE 1(G) from the date that a disbursement hereunder is mailed or delivered to the Borrower or deposited into an account of the Borrower. Interest will accrue using a 365/366 day year and actual days elapsed until the Final Loan Amount is determined and the final repayment schedule is prepared and thereafter on a 360- day year basis and actual days elapsed. (F) LOAN REPAYDIENT. (1) Preliminary Repayment Schedule; Interim Pa ments. The attached APPENDIX A is a preliminary repayment schedule based on the estimated date of the first disbursement hereunder and Loan Amount. Until the final repayment schedule is effective, the Borrower shall make the payments set forth in the preliminary repayment schedule. (2) Final Repyment Schedule. After the Borrower has submitted.its final request for Loan proceeds and DEQ has made all required disbursements hereunder, DEQ CITY OF ASHLAND: 811751: 2718473 (8115/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 6. will determine the Final Loan Amount and prepare a final payment schedule that provides for level semi-annual installment payments of principal and interest (commencing on the next semi-annual payment date), each in an amount sufficient to pay accrued interest to the date of payment and to pay so much. of the principal balance as to fully amortize the then Outstanding Loan Amount over the remaining Repayment Period. (3) Crediting of Scheduled Payments. A scheduled payment received before the scheduled repayment date will be applied to interest and principal on the scheduled repayment date, rather than on the day such payment is received. Scheduled payments will be applied first to fees due, if any, and then to interest, according to the applicable repayment schedule, and then to principal. (4) Crediting of Unscheduled Payments. All unscheduled payments, including any prepayments and partial payments, will be applied first to fees due, if any, and then to accrued unpaid interest (which will be computed as otherwise provided in this Agreement, except that interest from the last payment date will be calculated using a 365!366 day year and actual days elapsed), and then to principal. In the case of a Loan prepayment that does not prepay all of the principal of the Loan, DEQ will detenmine, in its sole discretion, how it will apply such Loan prepayment to the Outstanding Loan Amount. After a partial payment, DEQ may, in its sole and absolute discretion, reamortize the Outstanding Loan Amount at the same interest rate for the same number of payments to decrease the Loan payment amount; provided, however, that nothing in this Agreement requires DEQ to accept any partial payment or to reamortize the Outstanding Loan Amount if it accepts a partial payment. (S) Final Payment. The Outstanding Loan Amount, all accrued and unpaid interest, and all unpaid fees and charges due hereunder are due and payable no later than twenty (20) years after the Completion Date. (G) PREPAYMENT. (1) Optional Prepayment. The Borrower may prepay any amount owed on this Loan without penalty on any business day upon 24 hours prior written notice. Any prepayment made hereunder will be applied in accordance with ARTICLE 2(F)(4). (2) Refinancing of Loan by the Borrower. If the Borrower refinances the portion of the Project financed by this Loan or obtains an additional grant or loan that is intended to finance the portion of the Project financed by this Loan, it will prepay the portion of the Loan being refinanced by the additional grant or loan. (3). Ineligible Uses of the Project. If the Borrower uses the Project for uses that are other than those described in ARTICLE I (F) ("ineligible uses"), the Borrower shall, upon demand by DEQ, prepay an amount equal. to the Outstanding Loan Amount multiplied by the percentage (as determined by DEQ) of ineligible use of the Project. Such prepayment shall be applied against the most remotely maturing principal installments and shall not postpone the due date of any payment(s) hereunder. CITY of ASHLAND: R11751: 2718473 (8/15/11) THAN AGRF-FK4ENT ' OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLyING FUND PAGE 7 (II) LATE PAYMENT FEE. The Borrower agrees to pay immediately upon DEQ's demand a late fee equal to five percent (5%) of any payment (including any loan fee) that is not received by DEQ on or before the tenth (10`~ calendar day after such payment is due hereunder. (1) TERMINATION OF LOAN AGREEMENT. Upon performance by the Borrower of all 'I of its obligations under this Loan Agreement, including payment in full of the Final Loan Amount, all accrued interest and all fees, charges and other amounts due hereunder, this Loan Agreement will terminate, and DEQ will release its interest in any collateral given as security under this Loan Agreement. ARTICLE 3: GENERAL REPRESHNTATTONS, WARRANTIES AND COVENANTS' (A) ' REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower represents and v,-anants to DEQ that: (1) It is a duly formed and existing public agency (as defined in ORS 463.423 (2)) and has full power and authority to enter into this Loan Agreement (2) This Agreement has been duly authorized and executed and delivered by an authorized officer of the Borrower and constitutes the legal, valid and binding obligation of the Borrower enforceable in accordance with its terms. (3) All acts, conditions and things required to exist, happen and be lierfomted .precedent to.and in the issuance of this Agreement have existed, have happened, and have been performed in due time, form and manner as required by law. (4) Neither the execution of this Loan Agreement, the consummation of the' transactions contemplated hereby,. nor the fulfillment of or compliance with any of the terms and conditions of this Loan Agreement will violate any provision of law, or any order of any court or other agency of government, or any agreement or other instrument to which the Borrower is now a party or by which the Borrower or any of its ptoperties or assets is bound. Nor will this Loan Agreement be in conflict with, result in a breach of, or constitute a default under, any such agreement or other instrument, or, except as provided hereuhder, result in the creation or imposition of any lien, . charge or encumbrance of any nature whatsoever upon any of the property or assets of the Borrower. (5) This Loan Agreement does not create any unconstitutional indebtedness. The Loan Amount together with all of the Borrower's other obligations does not, and will not, exceed any limits prescribed by the Constitution, any of the statutes of the State of Oregon, the Borrower's charter, or any other authority. (6) The Project is a project which the Borrower may undertake pursuant to Oregon law and for which the Borrower is authorized by law to borrow money. (7) • The Borrower has full legal right and authority and all necessary licenses and permits required as of the date hereof to own, operate and maintain the Facility and CrIYOF ASHLAND: RI 1751:2718473 (8/15111) LOAN AGREEmENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE.REVOLVING FUND PAGE 8 the Project, other- than licenses and permits relating to the Facility or the Project which the Borrower expects to and shall receive in the ordinary course of business, to carry on its activities relating thereto, to execute and deliver this Agreement, to undertake and. complete the Project, and to carry out and consummate all transactions contemplated by this Agreement. (8) The information contained herein which was provided by the Borrower is true and accurate in all respects, and there is no material adverse information relating to the Project or the Loan, known to the Borrower, that has not been disclosed in writing to DEQ. (9) No litigation exists or has been threatened that would cast doubt on the enforceability of the Borrower's obligations under this Loan Agreement, (10) The estimated Completion Date of the Project is June 30, 2018. The Borrower agrees to complete the Project by the estimated Completion Date. (11) The estimated total Costs of the Project are $4,549,691. (12) The Borrower is in compliance with all laws, ordinances, and governmental rules and regulations to which it is subject, the failure to comply with which would materially adversely affect the ability of the Borrower to conduct its activities or undertake or complete the Project or the condition (financial or otherwise) of the Borrower or the Project. (B) CONTINUING REPRESENTATIONS OF THE BORROWER The representations of the Borrower contained herein shall be true on the closing date for the Loan and at all times during the term of this Agreement. (C) REPRESENTATIONS AND WARRANTIES OF DEQ. DEQ represents and warrants that the Director has power under ORS Chapter 468 and OAR Chapter 340, Division 54, to enter into the transactions contemplated by this Loan Agreement and to carry out DEQ's obligations thereunder and that the Director is authorized to execute and deliver this Laan Agreement and to make the Loan as contemplated hereby. ARTICLE 4: CONDITIONS TO LOAN (A) CONDITIONS TO CLOSING. DEQ's obligations hereunder are subject to the condition that on or prior to June 26, 2013, the Borrower will duly execute and deliver to DEQ the following items, each in form and substance satisfactory to DEQ and its counsel: (1) this Agreement duly executed and delivered by an authorized officer of the Borrower;, (2) a copy of the ordinance, order or resolution of the governing body of the Borrower authorizing the execution and delivery of this Agreement, certified by an authorized officer of the Borrower; CITY OF ASHLAND: R11751: 2718473 (8115/11) LOAN AGRr- ioErrr OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 9 .(3) Certification Regarding Lobbying, substantially in the form of APPENDIX G, duly executed and delivered by an authorized officer of the Borrower; (4) an opinion of the legal counsel to the Borrower to dne effect that: (a) The Borrower has the power and authority to execute and deliver and perform its obligations under this Loan Agreement; (b) This Loan Agreement has been duly executed and acknowledged -where necessary by the Borrower's authorized representative(s), all required approvals have been obtained, and all other necessary actions have been taken, so that this Loan Agreement is valid, binding, and enforceable against the Borrower in accordance with its terms, except as such enforcement is affected by bankruptcy, insolvency, moratorium, or other laws affecting creditors rights generally; (c) To such counsel's knowledge, this Loan Agreement does not violate any other agreement, statute, court order, or law to which the Borrower is a party or by which it or any of its property or assets is bound; and (d) The Gross Revenues from which the Net Operating Revenues are derived and that are used as security for the Loan will not constitute taxes that are limited by Section l lb, Article X1 of the Oregon Constitution; and (5) such other documents, certificates, opinions and information as DEQ or its counsel may reasonably require: (B) CONDITIONS To DISBURSE, MENTS. Notwithstanding anything in this Agreement to the contrary, DEQ shall have no obligation to make any disbursement to the Borrower under this Agreement unless: (1) No Event of Default and no event, omission or failure of a condition which would constitute an Event of Default after notice or lapse of time or both has occurred and is continuing; (2) All of the Borrower's representations and warranties in this Agreement are true and correct on the date of disbursement with the same effect as if made on such date; and (3) The Borrower submits a disbursement request to DEQ that complies with the requirements of ARTICLE 2(C); provided, however, DEQ shall be under no obligation to make any disbursement if (x) DEQ determines, in the reasonable exercise of its administrative discretion, there is insufficient money available in the SRF and CWSRF Program for the Project; or (y) there has been a change in any applicable state or federal law, statute, rule or regulation so that the Project is no longer eligible for the Loan. CITY of AsEtLAA'D: 81,1751:27] 8473 (8/15111) LOA.,4 AGPFF,MENT OREGON DEPARTwNTOF 131MRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PARE 10 ARTICLE 5:. COvENANTs OF BORROWER (A) GENERAL COVENANTS OF THE BORROWER. Until the Loan is paid in full, the 'Borrower covenants with DEQ that: (1) The Borrower shall use the Loan funds only for payment or reimbursement of the Costs of the Project in accordance with this Loan Agreement. The Borrower acknowledges and agrees that the Costs of the Project do NOT include any Lobbying costs or expenses incurred by Borrower or any person on behalf of Borrower and that Borrower will not request payment or reimbursement for Lobbying costs and expenses. (2) If the Loan proceeds'are insufficient to pay for the Costs of the Project in full, the Borrower shall pay from its own funds and without any right of reimbursement from DEQ all such Costs of the Project in excess of the Loan proceeds. (3) The Borrower is and will be the owner of the Facility and the Project and shall defend them against the claims and demands of all other persons at any time claiming the same or any interest therein. . (4) The Borrower shall not sell, lease, transfer, or encumber or enter into any management agreement or special use agreement with respect to the Facility or any financial or fixed asset of the utility system that produces the Net Operating Revenues without DEQ's prior written approval, which approval maybe withheld for any reason. Upon gale, transfer or encumbrance of the Facility or the Project, in whole or in part, to a private person or entity, this Loan shall be immediately due and payable in full. (5) Concurrent with the execution and delivery ofthis 'Loan Agreement, or as soon thereafter as practicable, the Borrower.shaE take all steps necessary to cause the Project to be completed in a timely manner in accordance with all applicable DEQ requirements. Project construction must begin within five (5) years of the environmental determination required by OAR 340-054-0022(5)(c). Borrower shall take reasonable'steps to begin using the Loan proceeds within two (2) years after execution of this Agreement, and if Borrower fails to do so, DEQ may terminate this Agreement. (6) The Borrower shall take no action that would adversely affect the eligibility of the Project as a CWSRF project or cause a violation of any Loan covenant in this Agreement. (7) The Borrower shall undertake the Project, request disbursements under this Loan Agreement, and use the Loan proceeds in full compliance with all applicable laws and regulations of the State of Oregon, including but not limited to ORS Chapter 468 and Oregon Administrative Rules Sections 340-054-0005 to 340-054-0065, as they may be amended from time to time, and all applicable federal authorities and laws and regulations of the United States, including but not limited to Title VI of the Clean Water Act as amended by thc'Wfter Quality Act of 1987, Public Law 100-,4, the federal cross-cutters listed at APPENDix D, the equal employment opportunity provisions in APPENDIX F, and the regulations of the U.S. Environmental Protection Agency, all as they may be amended from time to time. (8) The Borrower shall keep the Facility in good repair and working order at all times and operate the Facility in an efficient and economical manner. The Borrower shall provide the CrrY OF Asru.AHD: Rl 1751: 2718473 (8115111) LOAN AGREaiENr OREGON DEPARTMENT of ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE I I necessary resources for adequate operation, maintenance and replacement of the Project and retain sufficient personnel to operate the Facility. (9) Interest paid on this Loan Agreement is not excludable from gross income under Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code"). However, DEQ may have funded this Loan with the proceeds of State-bonds that bear -interest that is excludable from gross income under Section 103(a) of the Code. Section 141 of the Code requires that the State not allow the proceeds of the State bonds to be used by private entities (including the federal government) in such a way that the State bonds would become "private activity bonds" as defined in Section 141 of the Code. To protect the State bonds the Borrower agrees that it shall not use the Loan proceeds or lease, transfer or otherwise permit the use of the Project by any private person or'entity in any way that that would cause this Loan Agreement or the State bonds to be treated as "private activity bonds" under Section 141 of the Code and the regulations promulgated under that Section of the Code. (B) DEBT SERVICE COVERAGE REQUIREMENT; WAS'TE'WATER RATE COVENANT; REPORTING- (1) Debt Service Coverage Requirement. The Borrower shall maintain wastewater rates and charge fees in connection with the operation of the Facility that are adequate to generate Net Operating Revenues in each fiscal year sufficient to pay (i) all debt service (excluding debt service on the Loan), (ii) all other financial obligations imposed in connection with prior lien obligations of the Borrower, and (iii) an amount equal to the debt service coverage factor of 105% multiplied by the debt service payments due under this Loan Agreement in that fiscal year. (2) Wastewater Rate Adjustments. The Borrower shall review its wastewater rates and fees at least annually. If, in any fiscal year, the Borrower fails to collect fees sufficient to meet the debt service coverage requirement described in ARTICLE 5(B)(1), the Borrower shall promptly adjust its wastewater rates and fees to assure future compliance with such coverage requirement- The Borrower's adjustment of the wastewater rates and fees does not constitute a cure of any default by the Borrower of the debt service coverage requirement set forth in ARTICLE 5(13)(1). The Borrower's failure to adjust rates shall not, at the discretion of DEQ, constitute a default if the Borrower transfers to the fund that holds the Net Operating Revenues unencumbered resources in an amount equal to the revenue deficiency to the Facility that produces the Net Operating Revenues. (3) Reporting Requirement. By December 31 of each year the Borrower shall provide DEQ with a report that demonstrates the Borrower 's compliance with the requirements of this ARTICLE 5(B). If the audit report described in ARTICLE 5(F) identifies the Net Operating Revenues and contains a calculation demonstrating the Borrower's satisfaction of the requirements of this ARTICLE 5(B); that audit will satisfy the requirements of this ARTICLE 5(B)(3). CrrY of ASHLAND: R11751: 2718473 (8/15/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 12 (C) LOAN RESERVEREQvmEmENT;LOAN RESERVEA000UNT. (1) Loan Reserve Reduirement. The Loan reserve requirement equals 100% times one-half of the average annual debt service based on the final repayment schedule. Until the Final Loan Amount is calculated, the Loan reserve requirement is $210,174. The Borrower shall. deposit the Loan reserve requirement amount into the'Loan Reserve Account no later than the date the first payment is due hereurider. (2) Loan Reserve Account. The Borrower shall create a segregated Loan Reserve Account that shall be held in trust for the benefit of DEQ. The Borrower hereby grants to DEQ a security interest iri and irrevocably pledges the Loan Reserve Account to pay the amounts due under this Loan Agreement. The funds in Loan Reserve Account so pledged and hereafter received by the Borrower shall immediately be subject to the lien of such pledge without. physical delivery or further act, and the lien of the pledge shall be superior to all other claims and liens whatsoever, to the fullest extent permitted by ORS 287A.310: The Borrower represents and wan-ants that the pledge of the Loan Reserve Account hereby made by the Borrower complies with, and shall be valid and binding from the date of this Agreement pursuant to, ORS 287A.310. The Borrower shall use the funds in the Loan Reserve Account solely to pay amounts due hereunder until the principal, interest, fees, and any other amounts due hereunder have been fully paid (3) " Additional Deposits. If the balance in the Loan Reserve Account falls below the Loan reserve requirement, the Borrower shall promptly deposit from the first Net Operating Revenues available after payment of the. amounts due hereunder (unless the Borrower has previously made such deposit from other money of the Borrower) an amount sufficient to restore the balance up to the Loan reserve requirement. (D) INSURANCE. At its own expense, the Borrower shall, during'the term of this Agreement, procure and maintain insurance coverage (including; but not' limited to, hazard, flood . and general liability insurance) adequate to.protect DEQ's interest and in such amounts and against such risks as are usually insurable in connection with similar projects and as is usually carried by entities operating similar facilities. The insurance shall be with an entity which is acceptable to DEQ. The Borrower shall provide evidence of such insurance to DEQ. Self insurance maintained pursuant to a recognized municipal program of self-insurance will satisfy this requirement. (E) IrvnEARYMCA770N. The Borrower shall, to the extent permitted by law and the Oregon Constitution, indemn save and hold the State, its officers, agents and. employees harmless from and (subject to ORS Chapter 180) defend each of them against any and all claims, suits, actions, losses, damages, liabilities, cost and expenses of any nature whatsoever resulting from, arising out of or relating to the acts or omissions of the Borrower or its afters, employees, subcontractors or agents in regard to this Agreement or the Project. (F) THE BORRowicWs FINANCIAL RECORDS; FINANCIAL REPORTING REQUIREMENTS. (1) . Financial Records. The Borrower shall keep proper and complete books of record and account and maintain al] fiscal records related to this Agreement, the CITY of ASHLAND: Rl /751: 2718473 (8/15111) LOAN AoR ENiEw OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 13 Project, and the Facility in accordance with generally accepted accounting principles, generally accepted government accounting standards, the requirements of the Governmental Accounting Standards Board, and state minimum standards for audits of municipal corporations. The Borrower must maintain separate Project accounts in accordance with generally accepted government accounting standards promulgated by the Governmental Accounting Standards Board. The Borrower will permit DEQ and the Oregon Secretary of State and their representatives to inspect its properties, and all work done, labor performed and materials furnished in and about the Project, and DEQ, the Oregon Secretary of State and the federal government and their duly authorized representatives shall have access to the Borrower's fiscal records and other books, documents, papers, plans and writings that are pertinent to this Agreement to perform examinations and audits and make excerpts and transcripts and take copies. (2) Record Retention Period. The Borrower shall retain and keep accessible files and records relating to the Pro ject for at least six (6) years (or such longer period as' may be required by applicable law) after Project completion as determined by DEQ and financial files and records until all amounts due under this Loan Agreement are fully repaid, or until the conclusion of any audit, controversy, or litigation arising out of or related to this Agreement, whichever date is later. (3) Audit. Federal enabling legislation and applicable regulations require an audit of each CWSRF Loan. The Borrower agrees to provide to DEQ the following which DEQ agrees to accept as adequate to meet this federal audit requirement. (a) As soon as possible, but in no event later than six (6) months following the Project Completion Date, a full and complete accounting of the Costs of the Project, including but not limited to documentation to support each cost element and a summary of the Costs of the Project and the sources of finding; and (b) As soon as possible, but in no event later than nine (9) months after the end of each fiscal year, a copy of the Borrower's annual audit report, if requested by DEQ (4) ' Siriele Audit Act Requirements. The CWSRF Program receives capitalization grants through the Catalog of Federal Domestic Assistance ("CFDA") No. 66.458: Capitalization Grants for State Revolving Funds and is subject to the regulations of the U.S. Environmental Protection Agency ("EPA"). The CWSRF Program is subject to the U.S.. Office of Management and Budget Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations" implementing the Single Audit Act of 1984, 31 U.S.C. §§7501-7507 (1994) as amended by Pub. L. 104-156, §§1-3, 110 Stat. 1397 (1996) ("Circular A-133'x. As a sub-recipient of a federal grant, the Borrower is ' subject to Circular A-133 to the extent that Loan proceeds include federal capitalization grant funds. DEQ will notify the Borrower of the sources of the Loan funds at the end of each fiscal year, and to the extent required, the Borrower is responsible for compliance with the requirements of Circular A-133. (G) DBE GOOD FAmu EFFORT. Pursuant to the good faith efforts described in APPENDIX C, the Borrower shall make a good faith effort to promote fair share awards to Minority Business Enterprises ("MBE"), Women's Business Enterprises ("WBE" and Small CrrY OF ASHLAND: RI 1751:2718473 (8/15111) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY . CLEAN WATER STATE REVOLVING FUND PAGE 14 Businesses in Rural Areas ("SBRA") on all contracts and subcontracts awarded as part'of the Project. The Borrower agrees to include in its contract(s) with its prime contractor(s), the following language, which must not be altered in any way: "The contractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. The contractor shall carry out applicable requirements of 40 CFR part 33 in the award and administration of contracts awarded under EPA financial assistance agreements. Failure by the contractor to carryout these requirements is a material breach of this contract which may resultin the termination of this contract or other legally available remedies." The Borrower also agrees to include, in its contract(s) with its prime contractor(s), and shall cause each contract awarded by its prime contractor(s) to include, language to the following effect (the exact language may vary): (1) A prime contractor must pay its subcontractor(s) no more than 30 days from the prime contractor's receipt of payment from the Borrower. (2) The Borrower must be notified in writing by its prime contractor prior to any termination of a DBE subcontractor for convenience by the prime contractor. (3) If a DBE subcontractor fails to complete work under the subcontract for any reason, the prime contractor must employ the Six Good Faith Efforts described in 40 C.F.R. 33.301 if soliciting a replacement subcontractor. (4) A prime contractor must, employ the Six Good Faith Efforts even if the prime contractor has achieved its Fair Share Objectives under Subpart D of 40 C.F.R. Part 33. (It) CONTRACT LANGUAGE. The Borrower shall include in all contracts (unless exempt) with its prime contractor(s) the language set forth in:APPENDIx F. Further, the Borrower agrees to fully comply with Subpart C of 2 C.F.R_ 180 and Subpart C of 2 C.F.R. 1532 regarding debarment and suspension and agrees to include.or cause to be included in any contract at any tier the requirement that a contractor comply with Subpart C of 2 C.F.R. 180 and Subpart C of 2 C.F.R. 1532 if the contract is expected to equal or exceed $25,000. (1) PROJECT ASSURANCES. Nothing in this Loan Agreement prohibits the Borrower from requiring more assurances, guarantees, indemnity or other contractual requirements from any party performing Project work. ARTICLE 6: REPRESENTATIONS, WARRANTIES, COVENANTS AND CONDITIONS RELATING TO CONSTRUCTION PROJECTS ONLY (A) THE BORROWER'S REPRESENTATION AND WARRANTY REGARDING COSTS ALREADY INCURRED. (1) . The Borrower represents and warrants to DEQ that, as of the date of this Loan Agreement, the Costs of the Project actually incun'ed by the Borrower for construction, do not exceed $-1,645,280-. CITY-0F A'SNI.AND: R11751: 2718473 (8/15111) LOAN AC&EEMENT OREGON DEPARTMENT OF ENVIRONWENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 15 (2) The Borrower acknowledges that DEQ is relying upon the Borrower's representation regarding the amount of Costs of the Project incurred by the Borrower for construction prior to the date of this Loan Agreement as set forth in ARTICLE 6(A)(1) above to determine what portion of the Loan qualifies as a "refinancing" under the EPA's Clean Water State Revolving Fund regulations, 40 C.F.R.. Part 35, that may be disbursed on a reimbursement basis. (B) CONDITION TO DISBURSEMENTS. DEQ's obligation to make disbursements hereunder is further conditioned on the following: (1) The Borrower's plans, specifications and related documents for the Project shall be reviewed and approved by DEQ, as required by OAR Chapter 340, Division 054. (2) The Borrower has submitted documentation satisfactory to DEQ that the. disbursement is for work that complies with plans, specifications, change orders and addenda approved by DEQ, in accordance with OAR Chapter 340, Division 054. (3) The Borrower has submitted a copy of the awarded contract and bid documents (including a tabulation of all bids received) to DEQ for the portion of the Project costs that will be funded with the disbursement. (C) GENERAL PROVISIONS. The Borrower covenants with DEQ that: (1) Construction Manual. Unless stated otherwise in this Agreement; the Borrower shall comply with the requirements set forth in the Manual as in effect from time to time..DEQ will provide the Borrower with a copy of the Manual upon request. (2) Plans and Specifications. The Borrower shall obtain DEQ's review and approval of the Borrower's plans, specifications; and related documents for the Project, as required by OAR Chapter 340, Division 054, prior to any disbursement of Loan proceeds hereunder. (3) Change Orders. The Borrower shall submit all change orders to DEQ. The Borrower must submit prior to its execution any change order that exceeds $100,000 or will alter Project performance. The Borrower shall not use any Loan proceeds to pay for costs of any change order that DEQ has not approved in writing. This ARTICLE 6(C)(3) Shall not prevent the Borrower from using funds other than Loan proceeds to pay for a change order before DEQ approves it, but the Borrower bears the risk that DEQ will not approve the change order. (4) Inspections: Reports. The Borrower shall provide inspection reports during the construction of the Project as required by DEQ to ensure that the Project complies with approved plans and specifications. Qualified inspectors shall conduct these inspections under the direction of a registered civil, mechanical or electrical engineer, whichever is appropriate. DEQ or its representative(s) may enter property owned or controlled by the Borrower to conduct interim inspections and require progress reports sufficient to determine compliance with approved plans and specifications and with the Loan Agreement, as appropriate. CITY OF ASHLAND: RI 1751:2718473 (5115111) LOAN AGRFFtvtEt,,T OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 16 (5) Asbestos and Other Hazardous Materials. The Borrower. shall ensure that only persons trained and qualified for removal of asbestos or other. Hazardous Materials will remove any asbestos or Hazardous Materials, respectively, which may be part of this project (6) Operation and Maintenance Manual: The Borrower shall submit to DEQ a draft Facility operation and maintenance manual before the Project is fifty percent (501/6) complete. The Borrower shall submit to DEQ a final Facility operation and maintenance manual that meets DEQ's approval before,the Project is ninety percent (90%) complete, (7) Proiect Performance Certification.' The Borrower shall submit to DEQ draft performance standards before the Project is fifty percent (50%) complete. The Borrower shall submit to DEQ final performance standards that meet DEQ's approval before the Project is ninety percent (901/o) complete. The Borrower shall submit to DEQ the following done in accordance with the Manual: (i) no later than 10.5 months after the Initiation of Operation (as that tern is defined in OAR 340-054-0010(26)), a performance evaluation report based on the approved performance standards; (ii) within one year after the Project's Initiation of Operation, Project performance certification statement; and (iii) within two (2) months of submission of such Project performance certification statement, a corrective action plan for any Project deficiencies noted in said'statement. (8) Alterations After Completion The Borrower shall not materially alter the design or structural character of the Project after completing the Project without DEQ's written approval. (9) Project Initiation of Operations. (a) The Borrower shall notify DEQ of the Initiation of Operation no more than thirty (30) days after the actual Project Completion Date. (b) If the Project is completed, or is completed except for minor items, and the Project is operable, but DEQ has not received a notice of Initiation of Operation from the Borrower, DEQ may assign an Initiation of Operation date. . (D) PROVISION APPLICABLE TO CONTRACTS AND SuBCONTRACTs AWARDED FORTREPROJECT (t) Davis-Bacon Requirements. All contracts and subcontracts awarded as part of the Project shall comply with (1) the wage requirements of the Davis-Bacon Act, as'amended, 40 U.S.C. §§3141 to 3144, 3146 and 3147 (2002), and (2) the requirements of the Prevailing Wage Rates for Public ITrorkl• Projects in Oregon established under ORS 27k.800 through 279C.870 and OAR 839-025-0000 through 839-025-0540. The Borrower agrees that it will insert into any contract in excess of $2,000 for construction, and will cause its subcontractors to insert in any sub-contract in excess of $2,000 for . construction, the Davis-Bacon language set forth in Part 1 of APPENDIX E, and Part 2 of AFPENDiX E as applicable. CrrY OF ASHLAND:.RI 1751:2718473 (8/15/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REvoLVrNG FUND PAGE 17 . . (2) Retainaae. The Borrower shall require a five percent (5%) retainage in all of its contracts related to the Project for an amount greater than One Hundred Thousand Dollars ($100,000). ARTICLE 7: DiscLAIMEns BY DEQ, LLUnTATION OF DEQ's LIABILITY (A) DIscLAnm of ANY WARRANTY. DEQ EXPRESSLY DISCLAIMS ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDING THE PROJECT, THE QUALITY OF MATERIALS SUPPLIED TO AND THAT BECOME A PART OF THE PROJECT, THE QUALITY OF THE WORKMANSHIP PERFORMED UPON THE PROJECT, OR THE EXTENT AND STAGE OF COMPLETION OF THE PROJECT. No such warranty or guarantee shall be implied by virtue of any inspection of disbursement made by DEQ. Any inspection done by DEQ shall be for its sole benefit. (B) DISCLAIMER OF LIABILITY oFDEQ. DEQ EXPRESSLY DISCLAIMS LIABILITY OF ANY KIND OR CHARACTER WHATSOEVER FOR PAYMENT OF LABOR OR MATERIALS OR OTHERWISE IN CONNECTION WITH THE COMPLETION OF THE PROJECT OR CONTRACTS ENTERED INTO BYTHE BORROWER WITH THIRD PARTIES FOR THE COMPLETION OF THE PROJECT. All Project costs of labor, materials and construction, including any indirect costs, shall be the responsibility of and shall be paid by the Borrower. (C) NONLIABILITY OF STATE. (1) The State and its officers, agents and employees shall not be liable to the Borrower or to any other party for any death, injury, damage, or loss that may result to any person or property by or from any cause whatsoever, arising out of any defects in the plans, design drawings and, specifications for the Project, any agreements or documents between the Borrower and third parties related to the Project or any activities related to the Project. DEQ shall. not be responsible for verifying cost-effectiveness of the Project, doing cost comparisons or reviewing or monitoring compliance by the Borrower or any other party with state procurement laws and regulations. (2) The Borrower hereby expressly releases and discharges DEQ, its officers, agents and employees from all liabilities, obligations and claims arising-out of the Project work or under the Loan, subject only to exceptions previously agreed upon in writing by the parties. (3) Any findings by DEQ concerning the Project and any inspections or analyses of the Project by DEQ are for determining eligibility for the Loan and disbursement of Loan proceeds only. Such findings do not constitute an endorsement of.the feasibility of the Project or its components or an assurance of any kind for any other purpose. CrN OF ASHLAND: RI 1751:2718473 (8/15/11) LOAN AOREEKS-NT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY ' CLEAN WATER STATE REVOLyLNG FUND PAGE 18 (4) Review and approval of Facilities plans, design drawings and specifications or other documents by or for DEQ does not relieve the .Borrower of its responsibility to . properly plan, design, build and effectively operate and maintain the Facility as required by law, regulations, permits and good management practices. ARTICLE 8: DEFAULTANDRExamms ' (A) EVENTS OF DEFAULT. The occurrence of one or more of the following events constitutes an Event of Default, whether occurring voluntarily or involuntarily, by operation of law or pursuant to any order of any court or governmental agency: (1) The Borrower fails to make any Loan payment within thirty (30) days after the payment is scheduled to be made according to the repayment schedule; (2) Any representation or warranty made by the Borrower hereunder was untrue in any material respect as of the date it was made; (3) The Borrower becomes insolvent or admits in writing an inability to pay its debts as they mature or applies for, consents to, or acquiesces in the appointment of a trustee . or receiver for the Borrower or a substantial part of its property; or in the absence of such application, consent, or acquiescence, a trustee or receiver is appointed for the Borrower or a substantial part of its property and is not discharged within sixty (60) days; or any - banlmTtcy, reorganization, debt arrangement or moratorium or any dissolution or liquidation proceeding is instituted by or against the Borrower and, if instituted against the Borrower,-is consented to or acquiesced in by the Borrower or is not dismissed within twenty (20) days; (4) As a result of any changes in the United States'Constitution or the Oregon Constitution or as a result of any legislative, judicial, or administrative action, any part of this Loan Agreement becomes void, unenforceable or impossible to perform in accordance with the intent and purposes of the parties hereto or is declared unlawful; (5) The Borrower defaults in the performance or observance of any covenants or agreements contained in any loan documents between itself and any lender or lenders, and the default'remains uncured upon the expiration of any cure period provided by said .loan documents; or (6) The Borrower fails to cure non-compliance in any material respect with any other covenant, condition, or agreement of the Borrower hereunder, other than as set forth in (1) through (5) above within a period of thirty (30) days after DEQ provides notice of the noncompliance. (B) REMEwEs. If DEQ determines that an Event of Default has occurred, DEQ may, without further notice: Cr Y OF ASHLAND: 811751:27 L8473 (8/15111) LOAN AGREEhEM OREGON DEPARTMENT of ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 19 (1) Declare the Outstanding Loan Amount plus any unpaid accrued interest, fees and any other amounts due hereunder immediately due and payable; (2) Cease making disbursement of Loan proceeds or make some disbursements of Loan proceeds and withhold or refuse to make other disbursements; (3) Appoint a receiver, at the BorroweV's expense, to operate the Facility that produces-the pledged revenues and collect the Gross Revenues; (4) Set and collect utility rates and charges;. (S) Pay, compromise or settle any liens on the Facility or the Project or pay other sums required to be paid by the Borrower in connection with the Project, at DEQ's discretion, using the Loan proceeds and such additional money as may be required. If DEQ pays any encumbrance, lien, claim, or demand, it shali be subrogated, to the extent of the amount of such payment, to all the rights, powers, privileges, and remedies of the holder of the encumbrance, lien, claim, or dernand, as the case may be. Any such subrogation rights shall be additional cumulative security for the amounts due under this Loan Agreement; (6) 'Direct the State Treasurer to withhold any amounts otherwise. due to the Borrower from.the State of Oregon and, to the extent permitted by law, direct that such funds be applied to. the amounts due DEQ under this Loan Agreement and be deposited into the SRF; and (7) Pursue any other legal or equitable remedy it may have. ARTICLE 9: DEFINITIONS (A) "BORROWER" means the public agency (as defined in ORS 468.423(2)) shown as the `Borrower" in Article 1(A) of this Agreement. (B) "COMPLETION DAT&" means the date on which the Project is completed. If the Project.is a planning project, the Completion Date is the date on which DEQ accepts the planning project. If the Project is a design project, the Completion Date is the date on which the design project is ready for the contractor bid process. If the Project is a construction project, the Completion Date is the date on which the construction project is substantially complete and ready' for Initiation of Operation. (C) "Cosrs OF THE PRDJECT" means expenditures approved by DEQ that are necessary to construct the Project in compliance with DEQ's'requirements and may include but are not limited to the following items: (1) Cost of lab6r and materials and all costs the Borrower is required to pay under the terms of any contract for the design, acquisition, construction or installation of the Project (2) Engineering fees for the design and construction of the Project CITY or ASHLAND: R11751:2718473 (8115/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 20 (3) The costs of surety bonds and insurance of all kinds that may be required or necessary during the course of completion of the Project; (4) The legal, financing and administrative costs of obtaining the Loan and completing the Project; and (S) Any other costs approved in writing by DEQ. (D) "CWSRF PROGRAM" or "0VSRF" means the Clean Water State Revolving Fund Loan Program, a loan program administered by DEQ under ORS 468.423 to 468.440. . (E) "DEQ" means the Oregon Department of Environmental Quality. (F) "DIRECTOR" means the Director of DEQ or the Director's authorized representative. (G) "FACILITI1" means all property owned or used by the Borrower to provide wastewater collection, treatment- and disposal services, of which the Project is apart. (H) "ANAL LOAN AmoUNT" means the total of all Loan proceeds disbursed to the Borrower under the Loan Agreement, determined on the date on which the Borrower indicates that no further Loan funds will be requested, all eligible -expenditures have been reimbursed from the Loan proceeds, or all Loan proceeds have been disbursed hereunder, whichever occurs first. (T) "GROSS REVENUES" means all fees and charges resulting from operation of the Facility and any interest earnings thereon; provided however, Gross Revenues does not include: the proceeds of any grants; the proceeds of any borrowings for capital improvements; the proceeds of any liability insurance; or the proceeds of any casualty insurance which the Borrower intends to and does utilize for repair or replacement of the Facility or a part thereof. (J) "HAZARDOUS MATERIALS" .means and includes flammable explosives, radioactive materials; asbestos and substances defined as hazardous materials, hazardous substances or hazardous wastes in the Comprehensive Environmental Response, Compensation, and Liability Act, as amended by the Superfimd Amendments and Reauthorization Act (42 U.S.C. Section 9641, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 1801, et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901, et seq.), and regulations promulgated thereunder. (l({) "LOAN" means the loan made pursuant to this Loan Agreement. (L) "LOAN AGREEMENT" or "AGREEMENT" means this loan agreement and its exhibits, appendices, schedules and attachments (which are by this reference incorporated herein), and any amendments thereto. (M) "LOAN AMOUNT" means the maximum amount DEQ agrees to loan the Borrower hereunder. (N) "LOAN RESERVE ACCouNT" means the account described in ARTICLE 5(c)(2). My oh AstiLAND: R11751:.2718473 (8/15/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND 1 AGE, 21 . (0) "LOBBYING" means influencing or attempting to influence a member, officer or employee of a governmental agency or legislature in connection with the awarding of a government contract, the making of a government grant or loan or the entering into of a cooperative agreement with such governmental entity or the extension, continuation, renewal, amendment or modification of any of the above. (P) "MANUAL" means the CWSRF Manual for Construction Projects. (Q) "NET. OPERATING REvFNUEs" means the Gross Revenues less the Operating Expenses for the Facility. (R) "OPERATING EXPENSES" means all direct and indirect expenses incurred for operation, maintenance and repair of the Facility, including but is not limited to administrative expenses, legal, financial and accounting expenses, insurance premiums, claims (to the extent that monies are not available from insurance proceeds), taxes, engineering expenses relating to operation and maintenance, payments and reserves for pension, retirement, health, hospitalization, and sick leave benefits, and any other similar expenses to be paid to the extent properly and directly atu-ibutable to operations of the Facility. Operating expenses include an appropriate amount for reserves for repair and replacement of the Facility based on the expected life of the collection, treatment and disposal facilities. (S) "OUTSTANDING LOAN AmOUNT means, as of any date, the sum of all disbursements to the Borrower bereunder'less the sum of all Loan principal payments received by DEQ. (T) "PROXECT" means the facilities, activities or documents described in ARTICLE 1(E) and (F). (U) "REPAYMENT PERIOA" means the repayment period ending on the date specified in ARTICLE 1(Il) which date shall not in any event be later than twenty (20) years after the Completion Date. (V) "SRF" means the Water Pollution Control Revolving Fund established under ORS 468.427, also known as the State Revolving Fund. (W) ".STATE" means the State of Oregon. ARTICLE 10: MISCELLANEOUS (A) NOTICES. All notices, payments, statements, demands, requests or other communications under this Loan Agreement by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if delivered by personal delivery, by certified mail, return receipt requested, or by facsimile transmission, and, if to the Borrower, delivered, addressed or transmitted to the location or number listed in ARTICLE 1(B), and if to DEQ, delivered, addressed or transmitted to: Clean Water State Revolving Fund Loan Program Water Quality Division Department of Environmental Quality 811 S.W. Sixth Avenue CITY OF ASHLAND: 811751: 2718473 (8/15/11) LOAN AGRE[i&E-Nr OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 22 Portland, Oregon 97204-1390 Fax (503) 229-6037 or to such other addresses'or numbers as the parties may from time to time designate. Any notice or other communication so addressed and mailed shall be deemed to be given five (5) days after mailing. Any notice or other communication delivered by facsimile shall be deemed to be given when receipt of the transmission is generated by the transmitting machine. To be effective against DEQ, such facsimile transmission must be confirmed by telephone notice to DEQ's CWSRF Program Coordinator. Any notice or other communication by personal delivery shall be deemed to be given when actually delivered. (B) WAIVERS AND RESERVATION OF RIGHTS. (1) DEQ's waiver of any breach by the Borrower of any term, covenant ci condition of this Loan Agreement shall not operate as a waiver of any subsequent breach of the same or breach of any other term, covenant, or condition of tbis Loan Agreement. DEQ may pursue any of its remedies hereunder concurrently or consecutively without being deemed to have waived its right to pursue any other remedy. (2) Nothing in this Loan Agreement affects DEQ's right to take remedial action, including, but not limited to, administrative enforcement action and action for breach of contract against the Borrower, if the Borrower fails to carry out its *obligations under this Loan Agreement. (C) TIME Is OF THE EssENCR, The Borrower agrees that time is of the essence under this Loan Agreement. (D) RELATIONSHIP OF PARTIFs. The parties agree and acknowledge that their ' relationship is that of independent contracting parties, and neither party hereto shall be deemed an agent, partner, joint venturer or related entity of the Other by reason df this Loan Agreement. (L+') O THIRD PARTY BENEFICIARIES. DEQ and the Borrower are the only parties to N this Loan Agreement and are the only parties entitled to enforce the terms of this Loan Agreement. Nothing in this Loan Agreement gives, is intended to give, or shall be construed to give or provide any benefit or right not held by or made generally available to the public, whether directly, indirectly or otherwise, to third persons unless such third persons are individually identified by name herein and expressly described as intended beneficiaries of the terms of this Loan Agreement. Any inspections, audits, reports or other assurances done or obtained, or approvals or consents given, by DEQ are for its benefit only for the purposes of administering this Loan and the CWSRF Program. (6) ASSIGNMENT. DEQ shall have the right to transfer the Loan or any part thereof, or assign any or all of its rights under this Loan Agreement, at any time after execution of this Loan Agreemeht upon written notice to the Borrower. Provisions of Us Loan Agreement shall inure to the benefit of DEQ's successors and assigns. This Loan Agreement or any interest therein may be assigned or transferred by the Borrower only with DEQ's prior written approval (which consent may be withheld for any reason), and any assignment or transfer by the Borrower in contravention of this ARTICLE 10(F) shall be null and void. Crrr of ASHLAND: 111 1711:2719471 (8115111) LOAN AoREEMENT OREGON DFPARTMENT OF ENVIRONMENTAL QUALITY ' CLEAN WATER STATF RsV OLVMG FUND ' PAGE 23 (G) DEQ NOT REQUIRED TO ACT. Nothing contained in this Loan Agreement requires DEQ to incur any expense or to take any action hereunder in regards to the Project. (H) FURTHER AssuRANCEs. The Borrower and DEQ agree to execute and deliver any written instruments necessary to carry out any agreement, term, condition or assurance in this Loan Agreement whenever a party makes a reasonable request to the other party for such instruments. (1) VALIDITY AND SEVERARILITY; SURVIVAL. If any part, term, or provision of this Loan Agreement or of any other Loan document shall be held by a court of competent jurisdiction to be void, voidable, or unenforceable by either parry, the validity of the remaining portions, terms and provisions shall not be affected, and all such: remaining portions, terms and provisions shall remain in full force and effect. Any provision of Phis Agreement which by its nature or terms is intended to survive termination, including but not limited to ARTICLE 5(E), shall survive temnination of this Agreement. (J) No CONSTRUCTION AGAINST DRAFTER. Both parties acknowledge that they, are each represented by and have-sought the advice of counsel in connection with this Loan Agreement and the transactions contemplated hereby and have read and understand the terms of this Loan Agreement. The terms of this Loan Agreement shall not be construed against either party as the drafter hereof. (IC) HEADINGS. All headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of this Loan Agreement (L) . ATToRNEYs' FEES AND EXPENSES. In any action or suit to enforce any right or remedy under this Agreement, the prevailing party shall be' entitled' to recover its reasonable attomeys' fees and costs, to the extent permitted bylaw: (NI) CHOICEOFLAw;DEsIGNAnoNoFFORUMI.FEDERALFORUn4. (1) The laws of the State of Oregon (without giving effect to its conflicts of law. principles) govern all matters arising out of or relating to this Agreement, including, without limitation, its validity, interpretation, construction, performance, and enforcement. (2) Any party bringing a legal action or proceeding against any other party arising out of or relating to this Agreement shall bring the legal action or proceeding in the Circuit Court of the State of Oregon for Marion County (unless Oregon law requires that it be brought and conducted in another county). Each party hereby consents to the exclusive jurisdiction of such court, waives any objection to venue, and waives any claim that such forum is an inconvenient forum. (3) Notwithstanding ARTICLE I OM(2), if a claim must be brought in a federal forum, then it•musl be brought and adjudicated solely and exclusivelywithin the United States District Court for the District of Oregon. This ARTICLE 10(K(3) applies to a claim brought against the State of Oregon only to the extent Congress has appropriately abrogated the State of Oregon's . sovereign immunity and is not consent by the State of Oregon to be sued in federal court. This ARTICLE 10(M)(3) is also not a waiver by the State of Oregon of any form of defense or immunity, including but not limited to sovereign immunity and immunity based on the Eleventh Amendment to the Constitution of the United States. CITY of ASHLAND: RI 1751: 2718473 (8115111) LOAN AOReu&w i OREGON DEPARTMENT OF EN V IRONWNTA L QUALITY CLEAN INTATER STATE REVOLVrNO-FUND - PACE 24 - (N) CouNTERPARTs_ This Lean Agreement may be executed 'in' any number of counterpaits, each of which is deemed to be an origirial, but all together constitute but one and the same instrument. (4) ENTIRE L CI2EEMZ NT; Ari tvD~aENTS. This Loan Agreement, including all 'appendices .and attachments that are by this reference 'incorporated herein, constitutes the entire agreement between the Borrower and DEQ on the subject matter hereof, and it shall be binding on the parties thereto when executed by all the parties and- when all approvals required to. be obtained by DEQ have been obtained. This Loan Agreement, including all related Loan documents and instruments, may not be amended, changed, modified, or altered without. the written consent of the parties. i CITY Of ASHLAND r/ By: Authoiz~ld Officer Date TypedName: . Title: STATE OF OREGON ACTING BY AND Ti ROUGH YTS I)F.PARTN ENT OF EWI RON MENTAL QUALITY By. Gregory K. Aldrich, Water QualityAdministrator. Date Approyed as to Legal Sufficiency by The Attorney General's Office Lynn T. Nagasako,. Senior AAG- Date CrrY bF Asi- A oU Rl 1751: 2715473 (8115/11) LOAN AGREEMEN-r OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND - PAGE 25 APPENDIX A: REPAYMENT SCHEDULE BORROWER: City of Ashland ANNUAL- INTEREST RATE: 1.00`/0 . SRF LOAN NO.: R11751 PAYMENTAMOUNT: Variable LOAN AMOUNT: $ 4,549 691 ANNUAL FEE: 0.50`/0 Due PAYMENT----------------- Principal . Date Pmt# Principal Interest Fees Total Balance 4,549,691 9/1/2015 1 0 .68,600 0 68,600 4,549,691 3/1/2016 2 120,494 22,748 22,748 165;990. 4,429,197 9/1/2016 3' 121,096 22,146 0 143,242 4,308,101 3/112017 4 121,702 21,540 21,540 164,782 4,186,399 9/1/2017 5 122,310 20,932 0 143,242 4,064,089 . 3/1/2018 6 122,922 20,320 20,320 163,562 3,941,167 9/1/2018 7 123,536 19,706 . 0 143,242 3,817,631 3/1/2019 8 124,153 19,089 19,089 162,331 3,693,478 911/2019 9 124,775 '18,467 0 143,242 3,568,703 31112020 10 125,398 17,844 17,844 161,086 3,443,305 9/1/2020 11 126,026- 17,216 0 143,242 3,317,279 3/112021 12 126,656 16,586 16,586 159,828 3,190,623 9/112021 13 127,289 15,953 0 143,242 3,063,334 31112022 14 127,925 15,317 15,317 158,559 2,935,409 9/1/2022 15 128,565 14,677 0 143,242 2,806,844 3/1/2023 16 129,208 14,034 14,034 157,276 2,677,636 9/1/2023 17 129,854 13,388 0 143,242 " 2,547,782 311/2024 18 130,503 12,739 12,739 155,981 2,417,279 911/2024 '19 131,155 12,087 0 143,242 2,285,124 31112025 20 131,812 11,430 11,430 154,672 2,154,312 91112025 21 132,470 10,772 0 143,242 2,021,842 . 311/2026 22 133,133 10,109 10,109 153,351 1,888,709 9/1/2026 23 133,799 9,443' 0 143,242 1,754,910 311/2027 24 134,487 8,775 8,775 152,017 1,620,443 911/2027 25 135,140 8,102 0 143,242 1,486,303 31IM28 26 135,815 7,427' 7,427 150,669 1,349,488 911/2028 27 138,494 6,748 0 143,242 1,212,994 31112029. 28 137,177 6,065 8,065 149,307 1,075,817 911/2029 29 137,863 5,379 0 143,242 937,954 3/1/2030 30 138,545 4,690 4,690 147,925 799,409 9/112030 31 78,157 3,997: 0. 82,154 721,252 311/2031 32 78,548 3,606 3,606 85,760 642,764 911/2031 33 78,940 3,214 0 82,154 563,764 3/112032 34 79;335 2,819 2,819 84,973 484,429 91112032 35 79,732 2,422 0 82,154 404,697 3/1/2033 36 80,131 2,023 2,023 .84,177 324,566 911/2033 37 80,531 1,623 0 - 82,154 244,035 3/112034 38 80,934 1,220 1,220 83,374 163:101 911/2034 39 81,338 816 0 82,154 81,763 . 311/2035 40 81,763 409 409 82,581 0 TOTALS 4 549 691 494,478 218,790 5,262 959 REQUIRED LOAN RESERVE: $ 210,174 CITYYoFASHLAND:RI 1751:2718473(8115/11) LOAN AOFEEME r OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE26 APPENDIXB: F.SnMATEDCWSRFLOANDISBURSEMENTSCHEDULE Loan funds are expected to be available based on the following Project schedule: 4/13 - 6/13:$2,274,W 7/13 - 9/13: $2,274,846 I r Crtv OF Astau tiD: R11751: 2718473 (8/15111) LOAN AGREEM24T OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 27 APPENDIX C: DBE Goon FAIT$ EFFORTS At a minimum the Borrower or its prime contractor must take six affirmative steps (which apply to any procurement of construction, supplies, equipment or services) to demonstrate good faith effort to utilize minority (MBE), women-owned (WBE) and small (SBE) businesses. The six steps are: 1) To include qualified small, minority and women's businesses on solicitation lists; 2) To assure that small, minority, women's businesses are solicited whenever they are potential sources; 3) To divide total requirements, whenever economically feasible, into smaller tasks or quantities to pennit maximum participation by small, minority or women's businesses; 4) To establish delivery schedules whenever the requirements of the work permit, which will encourage participation by small, minority and women's businesses; 5) To use the services and assistance of the Small Business Administration (http://pto-net.sba.gov) and the Office of Minority Business Enterprise of the U.S. Department of Commerce (http://www.mbda.gov) to identify appropriate small, minority and women businesses; and 6) To require subcontractors to take all of the affirmative action steps described above and set forth in 40 CFR 35.3145(d)) in any contract awards or procurements. The Borrower shall, and shall cause its contractors to, document compliance with the above requirements on forms found at Tab 6 of the Manual for Construction Projects. Additional resources available to recipients and contractors include the following: EPA Office of Small and Disadvantaged Business Utilization: Phone:' 206 - 5 5 3 - 2931 Web Site: wNw.epa.gov/osdbu Oregon Office of Minority; Women and Emerging Small Business 350 Winter Street N.E.,,Room 300 Salem, OR 97301-3878 Phone: 503 - 947 - 7922 Web Site: www.cbs.state.or.us/omwesb CrPY or ASHLAND: R11751: 2718473 (8/15/11) LOAN AGREEMENT OREGON. DEPARTMENT OF ENVIRONMENTAL QUALITY ' CLEAN WATER STATE REVOLVING FUND PAGE28 Appendix D: APPLICABLE FEDERAL. AuTHORIT m AND LAWS ("CROSS-CUTTERS') ENVIRONMENTAL LEGISLATION: Archaeological and Historic Preservation Act of 1974, PL 93-291. Clean Air Act, 42 U.S.C. 7506(c). Coastal Barrier Resources Act, 16 U.S.C. 3501, et seq. Coastal Zone Management Act of 1972, PL 92=583, as amended. Endangered Species Act 16 U.S.C. 1531, et seq. Executive Order 11593, Protection and Enhancement of the Cultural Environment. Executive Order 11988, Floodplain Management Executive Order f 1990, Protection of Wetlands. Faunland Protection Policy Act, 7' U.S.C. 4201, et seq. Fish and Wildlife Coordination Act, PL 85-624, as amended. National Historic Preservation Act of 1966, PL 89-665,as amended. Safe Drinking Water Act, Section 1424(e), PL 92-523, as amended. Wild and Scenic Rivers Act, PL 90-542, as amended. Federal Water Pollution Control Act Amendments of 1972,.PL 92-500. ECONOMIC LEGISLATION: . Demonstration Cities and Metropolitan Development Act of 1966, PL 89-754, as amended. Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the'Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants or Loans. SOCIAL LEGISLATION: The Age. Discrimination Act of 1975, Pub. L. No. 94-135, 89 Stat. 713, 42 U.S.C. §6102 (1994). Civil Rights Act of 1964, Pub. L. No. 88-352,.78 Stat 252, 42 U.S.C_ §2000d (1988). Section 13 of PL 92-500; Prohibition against Sex Discrimination under the Federal Water Pollution Control Act. Rehabilitation Act of 1973, Pub. L. No. 93-1123, 87 Stat. 355,29 U.S.C.§794 (1988), including Executive Orders 11914 and 11250). Executive Order 12898, Environmental Justice in Minority Populations Exec. Order No. 11,246, 30 F.R. 12319 (1965), as amended by Exec. Order No. 11,375, 32 F.R. 14303 (1967), reprinted in 42 U.S.C. §2000e ()994), and it regulations at 41 C.F.R §§60-1.1 to 60-999.1. MISCELLANEOUS AvrHORrrY: Uniform Relocation and Real Property Acquisition Policies Act of 1970, PL 92-646. Executive Order 12549 and 40 CFR Part 32, Debarment and.Suspension. Disclosure of Lobbying Activities, Section 1352, Title 31, U.S. Code. Clrr of ASELAND: R11751:2719473(8/15/11) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 29 APPENDIX E: DA`PIs-BACON PROVISION Part 1 (1) Min imurn wages. (i) All laborers and mechanics employed or working upon the site of the work will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4), Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis- Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be'easily seen by the workers. Subrecipients may obtain wage determinations from the U.S. Department of Labor's web site, www.dol.gov. (ii)(A) The subrecipient(s), on behalf of EPA, shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed.under the contract shall be classified in conformance with the wage determination- The State award official shall approve a request for an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met: (1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and (2) The classification is utilized in the area by the construction industry; and (3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination. Cn'r OF Asii AND: R11751: 2718473 (8/15111) LOANAGxE&ivfEwr OREGON DEPARTMENT OF ENVIRONMENTAL QUALrry CLEAN WATER STATE REVOLVING FUND PAGE 30. (B) if the contractor. and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the subrecipient(s) agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), documentation of the action taken and the request, including the local wage determination shall be sent by the subrecipient (s) to the State award official. The State award ofEcial'will transmit the request, to the Administrator of the Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Washington, DC 20210 and to the EPA DB Regional Coordinator concurrently. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification request within 30 days of receipt and so advise the State award official or will notify the State award official within the 30-day period that additional time is necessary. (C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the subrecipient(s) do not agree on the proposed classification and wane rate (including the amount designated for fringe benefits, where appropriate), the award official shall refer the request and the local wage determination, including the views of all interested parties and the recommendation of the State award official, to the Administrator for determination. The request shall be sent to the EPA DB Regional Coordinator concurrently- The Administrator, or an authorized .representative, will issue a determination within 30 days of receipt of the request and so advise the contracting officer or will notify the contracting officer. within the 30-day period that additional time is necessary. (D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(l)(ii.)(B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification. (iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona Ede fringe benefit or an hourly cash equivalent thereof. (iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the. Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program. (2) Withholding. The subrecipient(s), shall upon written request ofthe EPA Award Official or an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis-Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work, all or part of the wages required Crrv OF AsiiLANn: R11751: 2718473 (8/15/11) LOAN AGRFSmi!t\rr OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 31 by the contract, the (Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased- (3) Payrolls and basic records. (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work. Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section l(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits. Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs. . (ii)(A) The contractor shall submit weekly, for each week in which any contract work is. performed, a copy of all payrolls to the subrecipient, that is, the entity that receives the sub-grant or loan from the State capitalization grant recipient. Such documentation shall be available on request of the State recipient or EPA. As to each payroll copy received, the subrecipient shall provide written confirmation in a form satisfactory to the State indicating whether or not the project is in compliance with the requirements of 29 CPR 5.5(a)(1) based on the most recent payroll copies for the specified week. The payrolls shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), except that full social security numbers and home addresses shall not be included on the weekly payrolls. Instead the payrolls shall only need to include an individually identifying number for each employee (e.g., the last four digits of the employee's social security number). The required weekly payroll information may be submitted in any form desired. Optional Form WH-347 is available for this purpose from the Wage and Hour Division Web site at http://w-,,vw.dol.gov/esa/whd(fon-ns/Nvh347instr.htiail or its successor site. The prince contractor is responsible for the submission of copies of payrolls by all subcontractors. Contractors and subcontractors shall maintain the full social security number and current address of each covered worker, and shall provide them upon request to the subrecipient(s) for transmission to the State or EPA if requested by EPA , the State, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or audit of compliance with prevailing wage requirements. It is not a violation of this section for a prime contractor to require a subcontractor to provide addresses and social security numbers to the prime contractor for its own records, without weekly submission to the subrecipient(s). 1 The correct website address is as foUows: httL?://,A,ebUps.dol.gov/`libMforms/FC=ByN-um.asp CrrY or ASHLAND: R11751: 2718473 (8115111) LOAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE Rlivuvrm FUND • PAGE 32 (B) Each payroll submitted shall be accompanied by a "Statement of Compliance," signed by the contractor or subcontractor or his or her agent who pays or supervises the payment of the persons employed under the contract and shall certify the following: (1) That the payroll -for the payroll period contains the information required to be provided under § 5.5 (a)(3)(ii) of Regulations, 29 CFR part 5, the appropriate information is being maintained under § 5.5 (a)(3)(i) of Regulations, 29 CFR part 5, and that such information is correct and complete; (2) That each laborer or mechanic (including each helper, apprentice, and trainee) employed on the contract during the payroll period has been paid the full weekly wages earned, without rebate; either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set forth in Regulations, 29 CFR part 3; (3) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits. or cash equivalents for the classification of work performed, as specified in the applicable wage determination incorporated into the contract. (C) The weekly submission of a properly executed certification set forth on the reverse side of Optional Form WH-347 shall satisfy the requirement for submission of the "Statement of Compliance" required by paragraph (a)(3)(ii)(B) of this section. (D) The falsification of any'of the above certifications may subj tet the contractor or subcontractor to civil or criminal prosecution under section 1001 of title 18 and section 231 of title 31 of the United States Code. (iii) The contractor or subcontractor shall make the records required under paragraph (a)(3)(i) of this section available for inspection, copying, or transcription by authorized representatives of the State; EPA or the Depattment.of Labor, and shall permit such representatives to interview employees during working hours on the job. If the contractor or subcontractor fails to submit the required records or to make them available, the Federal agency or State may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available may be grounds for debarment action pursuant to 29 CFR 5.12. (4) Apprentices and trainees-- (i) Apprentices. Apprentices will be permitted to work at less than the predetermined rate for the . work they performed when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship Training, Employer and Labor Services, or with a State Apprenticeship Agency recognized by the Office, or if a person is employed in his or her first 90 days of probationary employment as an apprentice in such an apprenticeship program, who is not individually registered in the program, but who has been certified by the Office of Apprenticeship Training, Employer and Labor Services or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice. The allowable ratio of apprentices to journeymen on the job site in any craft classification shall not be CrfY OF ASHLAND: Rl 1751: 2718473 (8/15/11) LOAN AGREaAcNT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE RE VOLVL*!O FUND PADS 33 greater than the ratio permitted to the contractor as to the entire work force under the registered program: Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated above, shall be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed. In addition, any apprentice performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. Where a contractor is performing construction on a project in a locality other than that in which its program is registered, the ratios and wage rates (expressed. in percentages of the journeyman's hourly rate) specified in the contractor's or subcontractor's registered program shall be observed. Every apprentice must be paid at not less than the rate specified in the registered program for the apprentice's level ofprogress, expressed as a percentage of the journeymen hourly rate specified in the applicable wage determination. Apprentices shall be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program'does not specify fringe benefits, apprentices must be paid the fall amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringes shall be paid in accordance with that determination. In the event the Office of Apprenticeship Training, Employer and Labor Services, or a State Apprenticeship Agency recognized by the'Office, withdraws approval of an apprenticeship program, the contractor will no longer be permitted to utilize apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved. (ii) Trainees. Except as provided in 29 CFR 5.16, trainees will not be permitted to work at less than the predetermined rate for the work performed unless they are employed pursuant to and individually registered in a program which bas received prior approval, evidenced by formal certification by the U.S. Department of Labor, Employment and Training Administration. The ratio of trainees to journeymen on the job site shall not be greater than permitted under the plan approved by the Employment and Training Administration. Every trainee must be paid at not. less than the rate specified in the approved program for the trainee's level of progress, expressed as a percentage of the journeyman hourly rate specified in the applicable wage determination. Trainees shall be paid fringe benefits in accordance with the provisions of the trainee program. If the trainee program does not mention fringe benefits, trainees shall be paid the fu11 amount of fringe benefits listed on the wage determination unless the Administrator of the Wage and Hour Division determines that there is an apprenticeship program associated with the corresponding journeyman wage rate on the wage determination which provides for less than full fringe benefits for.appreatices, Any employee listed on the payroll at a trainee rate who is not registered and participating in a training plan approved by the Employment and Training Administration shall be paid not less than the applicable wage rate on the wage determination for the classification of work-actually performed. In addition, any trainee performing work on the job site in excess of the ratio permitted under the registered program shall be paid not less than the applicable wage rate on the wage determination for the work actually performed. In the. event the Employment and Training Administration withdraws approval of a training program, the contractor will no longer be permitted to utilize trainees at less than the applicable predetermined rate for the work performed until anacceptable program is approved. (iii) Equal employment opportunity. The utilization of apprentices, trainees and journeymen under this part shall be in conforinity with the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30. CITY OF ASHLAND: R11751: 2718473 (8/15/11) LOAN AouEmENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 34 (5) Compliancewith Copeland Act requirements. The contractor shall comply with the requirements of 29. CFR part 3, which are incorporated by reference in this contract. (6) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses contained in 29 CFR 5.5(a)(1) through (10) and such other clauses as the EPA determines may by appropriate, and also a clause requiring the subcontractors to include these clauses in.any lower. tier subcontracts. The prime contractor shall be responsible for the compliance by any subcontractor or lower tier subcontractor with all the contract clauses in 29 CFR 5.5. (7) Contract termination; debarment A breach of the contract clauses'in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12. ' (S) Compliance with Davis-Bacon and Related Act requirements. All rulings -and interpretations of the Davis-Bacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract (9) Disputes concerning labor standards. Disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and Subrecipient(s), State, EPA, the U.S. Department of Labor, or the employees or their representatives. (10) Certification of eligibility. (i) By entering into this contract, the contractor certifies that neither it (nor he or she) nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (ii) No part of this contract shall be subcontracted to any person or firm ineligible for award of a Governmenf contract by virtue of section 3(a) of the Davis-Bacon Act or 29 CFR 5.12(a)(1). (iii) The penalty for malting false statements is prescribed in the U.S. Criminal Code, IS U.S.C: 1001. CTYOF ASHLAND: R11751: 2718473 (9/15/11) LOANMREEMENT OREGON DEPARTMENT TT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 35 Part 2 Contract Provision for Contracts in Excess of $100,000. (a) Contract Work Hours and Safety Standards Act. The subrecipient shall insert the following clauses set forth in paragraphs (a)(1), (2), (3), and (4) of this section in full in any contract in an arnount in excess of $100,000 and subject to the overtb-ne provisions of the Contract Work Hours and'Safety Standards Act. These clauses shall be inserted in addition to the clauses required by Item 3, above or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchmen and guards. (1) Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. (2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a)(1) of this section the contractor and any subcontractor responsible therefore shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph. (a)(1) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a)(1) of this section. (3) Withholding for unpaid wages and liquidated damages. The subrecipient shall upon the request of the EPA Award Official or an authorized representative of the Department of Labor, shall withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary.to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (a)(2) of this section. (4) Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (a)(1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (a)(1) through (4) of this section. (b) In addition to the clauses contained in Item 3, above, in any contract subject only to the Contract Work Hours and Safety Standards Act and not to any of the other statutes cited in 29 CFR 5.1, the subrecipient shall insert a clause requiring that the contractor or subcontractor shall maintain payrolls and basic payroll records during the course of the work and shall preserve Cry or MHLAND: 811751: 2718473 (8115111) LOAN AGRPEm NT URfiGO\DEP.AR_rM&-, rCAFi\wmONMETTAL.QUALITY CLEAN 1'JATER STATE REVOLVING FL? D PAGE 36 them for a l;zriod of three years from the completion of the cowunct for all laborers and mechanics, including: guards and ttatChn2eI1_ working on the contmci_ Such, records sliall comaln the narle vind address of each such employee, social sec-urit-v number, correct chassi ticatious, rtouTly fates of Nvages:.paid, dally and %veclk i> nuinbc.I of hours wori`cd, dedUCtiun, n7adc; and actual .wages paid. Further, the Subre.cipient shall inser, in any such contract a clause providing hat the records to be maintwined tinder this paragraph shall be inade available by the contractor or sabccm tractor for iispection, copying, pr transcription b authorized representatives of the Ore!.on Department of EnvlronrnenL-d Quality and the Department of Labor, and the contractor or subcontractor :vill pertnit such repre sentmives to irten'ievv employees auringr t~Url rig hours on the Job. 5. eompli. nce 'Verification (are The. subrecipie;it shall pe.riodicalty inlerview a sufficient number of employees entitled to DB prCvuilin Nvages (cohered employees) tcl verity- that contractors or subcoilirac*-ors are payma (l'ic appropriate Naugle rates. As provided in 29 C_F P _5.6(a )i 6 all iniervinvs mu_it be conducted in continence.. The stibYe-c.ipi(nlt mast Use Standard Torn; 1.44f• (SF 144-5) or equivalent doctimentaiion to me7rnonallze the interN-ietivs, Copies of the SF 1445 are available E-om EP on request.. (b) The subrecipient shall establish and c,ilow an interview schedule based on its a-ssessmeni of the risks of rionc.orliolialicc vtilh DB posed by cmitraetors of 5nbconti-actors and the duration of rile contract or subcontract. =ri tir-,--r , stl :pien.t slier= me at-trrt~E'~~s I- ~ y-eo';~N ti aCrEl~ p of Go`. ~4 C--.Pj0,''e -%44}kliiii4we ivt e4r iii c?el- • c n;r'aGier' r, ~yZ~t3 -Sll bGC3t1t 3C i3r= tiS d s? S1b1A 3t4ts r ° \Ee l? } r41 ~_lrt~ LA 2 ~ 3 s1?r t~? E ?ti . i^*;. , a•. =a . tr,ci-E~F Sabrecipients must conduct inore frequent inter tic•,;•s if the initial int nie~i`s or other information indicates that tHere is a risk tliat.the coniractor or subcontractor is not complying ttith DB , Subrecipients shall inuuediately conduct necessary inter. ieEi`s in response to an alleged violation of t11e prevailing wage requirements. All inters ie%vs sh4ll bt; cuP_ducled in confidence. (c) The st)Crecipient shall periodically conduct spot chec -,s of -a repremitative sample of weeldy payroll daia to verify that contractors or subcontraclors are paying the appropriate wage rates. Thi subrecipient shall establish and follow- a spot checl schedule based on its assessment of the nslis of noncompliance )Ayitb DB posed by contractors or subcontractors and.the duration of tlw contract br subcontract. At a minirnuni, if practicable, the subrecipient should spot check payroll data within tNvo weeks of each contractor or subcortractbr's submission of.its irdtial pa;.roll daia and vo weeks print to the completion date the contract or subcontract., Surreciplcmts must. conduct more frequent spot checks if the initial spot check or other information indicates that there is a risk that the COntraCtOr GE 5131)COJItractor is rlot.cdnipl ing.,1\ ith DI .Au addition, duritlo the t_xaminadons the subrcc.ipient shall verify evidence of himyt benefit plans and payments thereunder by contractors and subcontractors who claim credit f6r fringe benefit coiitributions. id) The subrecipi.em shall ,-vriodicalINs review contractors aria subcontractors use of apprentices and trainees To verif;' registration incl. certicaiion With respect to apprenti whip and mining prograill.s approved by eitlier the US Deparinnem of Labor or a sift e.. as appropriate, acid that COritraciors and subcontractors are not using d15pTLpvrill~IlatP IlIlrlherS Of_. la'orers, trainees and CifY:?FP, HihNU:Rl1751:??1ST3(a 1511) LtI.;N:A.GP.EZ1 FEINT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 37 apprentices. These reviews shall be conducted in accordance with the schedules for spot checks and interviews described in Item 5(b) and (c) above. (e) Subrecipients must immediately report potential violations of the DB prevailing wage requirements to the EPA DB contact listed above and to tho appropriate DOL Wage and Hour District Office listed at http?//www dol uov/esa/rontacts/whd/arnerica2.htnL2 2' The correct website address is as follows: http://www.doLgov/whd/`auielica2.htm#oregon CrN OF AsliLMD: 811751:2718473 (8115111) LOAN AoREF?dENT OREGON DEPARTMENT OF ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 38 APPENDIX F EQUAL EMPLOYIMENT OPPORTUNPI'Y During the performance of this contract the contractor agrees as follows: (1) The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The contractor will take affirruative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship: The contractor agrees to post in conspicuous places, available to . employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of this nondiscrimination clause. (2) The contractor will, in all solicitations or advertisements for employees placed by.or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or-national origin. (3) The contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided by the agency contracting officer, advising the labor union or workers' representative of the contractor's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. .(4) The contractor will comply with all.provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor. (5) The contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the contracting agency and the Secretary of Labor for purposes of investigation to ascertain compliance.with such rules, regulations and orders. (6) In the event of the contractor's noncompliance with the nondiscrimination clauses of this contractor with'any of such rules, regulations, or orders, this contract maybe canceled, terminated or suspended in whole or in part and the contractor may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. CF FY OF AsHLANO: R11751: 2718473 (8/15/11) LOAN AGREEmEN'I' OREGON DEPARTMENT of ENVIRONMENTAL QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 39 (7) The contractor will include the provisions of paragraphs (1) through (7) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The contractor will take such action with respect to any subcontract or purchase order as may be directed by the Secretary of Labor as a means of enforcing such provisions including sanctions for noncompliance: Provided however, that in the event the contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction, the contractor may request the United States to enter into such litigation to protect the interests of the United States. CrrY OF ASHLAND: R11751:2718473 (8/15/11) IRAN AGREEMENT OREGON DEPARTMENT OF ENVIRONMENTAL. QUALITY CLEAN WATER STATE REVOLVING FUND PAGE 4O APPENDix G: CERTIFICATION REGARDING LOBBYING (Contracts in Excess of $100,000.00) The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the Borrower, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation; renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer-or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative- agreement, the undersigned shall complete and submit Standard Form-LLL-, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person 'who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Signed Title J Date Recipient CITY or ASHLAND: RI 1751: 2718473 (8/15/11) L.oAN AGREEMENT Council Business Meeting February 6, 201EV Title: Approval of Personal Services Contract for Hersey Street Reconstruction Engineering Design From: Scott A. Fleury Deputy Public Works Director scott.fleuryCaD-ashland. or.us Summary: Before Council is a personal services contract for professional engineering and design services for the Hersey Street Reconstruction Project with OBEC Consulting Engineering. This project was released through an open request for qualifications (RFQ) based proposals. OBEC was selected as the best qualified among two proposers. The project has three distinct phases; preliminary design and permitting; final design and bidding; and construction services. Staff has negotiated the scope of work with OBEC for phase one and two, preliminary design and permitting, and final design and bidding services and concurs with the costs for these services. The construction administration portion will be negotiated upon completion of the final design and award of bid to a construction contractor. Actions, Options, or Potential Motions: Council has the option to approve this contract or refer staff back for a new request for proposals. Potential motions include: 1. Move approval of a contract for professional engineering and design services with OBEC Consulting Engineers Inc. for the Hersey Street Reconstruction Project 2. Direct staff to reconsider a new solicitation for the Hersey Street Reconstruction Project Staff Recommendation: Staff recommends approval of the personal services contract for professional engineering and design services for the Hersey Street Reconstruction Project for $627,525 ($490,000 and contingency tasks in the amount of $137,525). Contingency tasks are associated with right-of- way acquisition and additional environmental support. if needed, to finalize project engineering. Resource Requirements: The 2017-19 Street Division Biennium Budget includes funds for contracted services (Capital Improvement Program) in the amount of $4,000,000 for this project. Revenues for this project come directly from the re-apportionment of food and beverage tax monies into the Street Fund. Policies, Plans and Goals Supported: City Council: 2.1 Engage community in a conversation about core services, desired service levels and funding mechanisms 21. be proactive in using best practices in infrastructure management and modernization 22. Prepare for the impact of climate change on the community. Page 1 of 2 CITY OF -ASHLAND Department Goals: • Maintain existing infrastructure to meet regulatory requirements and minimize life-cycle costs • Deliver timely life cycle capital improvement projects • Maintain and improve infrastructure that enhances the economic vitality of the community • Evaluate all city infrastructure regarding planning management and financial resources Backl4round and Additional Information: Staff advertised the Hersey Street roadway rehabilitation project RFQ on September 12, 2017, statewide, on the ORPIN site, in the Mail Tribune, and on the City's website. Two proposals were received on October 26, 2017. Five city staff members independently graded each proposal with the criteria developed for the RFQ. OBEC Consulting Engineers, Inc. scored the highest. Staff subsequently sent a letter of intent to negotiate with OBEC on November 9, 2017. OBEC has met with staff to finalize the scope of work and cost proposal. They submitted a final scope and fee proposal on January 24th which has been reviewed and approved by staff. Staff provided an email notice of intent to award to OBEC on January 25, 2018 conditioned on Council approval at the February 6, 2018. Staff expects construction to begin on the project in spring of 2019. Next Steps: If approved, staff will execute the contract and initiate a project kick off meeting with OBEC. Attachments: Personal Services Contract between the City and OBEC Engineering for $627,525 for, the Hersey Street Reconstruction Project which includes OBEC's Scope of work and costing breakdown. Page 2of2 CITY OF ASHLAND Contract for Personal Services •ZONSULTANT: OBEC Consulting Engineers CITY OF ASHLAND CONTACT: Jaime Jordan P.E. 20 East Main Street ADDRESS: 831 O'Hare Parkway Ashland, Oregon 97520 Medford, OR 97504 Telephone: 541/488-6002 TELEPHONE: 541-774-5590 Fax: 5411488-5311 EMAIL: Jjordan@obec.com EFFECTIVE DATE: COMPLETION DATE: 6/30/2019 COMPENSATION: Not to Exceed (NTE) 627,525.00 as defined in Exhibit C. SERVICES TO BE PROVIDED: Preliminary and Final Design Services for the Hersey St. reconstruction as defined in Exhibit C. ADDITIONAL TERMS: None. In the event of a conflict or discrepancy among the contract documents, this City of Ashland Contract for Personal Services will be primary and take precedence, and any exhibits or ancillary agreements having redundant or contrary provisions will be subordinate to and interpreted in a manner that will not conflict with the said primal. City of Ashland Contract. FINDINGS: Pursuant to AMC 2.50.120, after reasonable inquiry and evaluation, the undersigned Department Head finds and determines that: (1) the services to be acquired are personal services; (2) the City does not have adequate personnel nor resources to perform the services; (3) the statement of work represents the department's plan for utilization of such personal services; (4) the undersigned consultant has specialized experience, education, training and capability sufficient to perform the quality, quantity and type of work requested in the scope of work within the time and financial constraints provided; (5) the consultant's proposal will best serve the needs of the City; and (6) the compensation negotiated herein is fair and reasonable. NOW THEREFORE, in consideration of the mutual covenants contained herein the CITY AND CONSULTANT AGREE as follows: 1. Findings / Recitations. The findings and recitations set forth above are true and correct and are incorporated herein by this reference. 2. All Costs by Consultant: Consultant shall, at its own risk and expense, perform the personal services described above and, unless otherwise specified, furnish all labor, equipment and materials required for the proper performance of such service. 3. Qualified Work: Consultant has represented, and by entering into this contract now represents, that all personnel assigned to the work required under this contract are fully qualified to perform the service to which they will be assigned in a skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are so registered, licensed and bonded. 4. Completion Date: Consultant shall start performing the service under this contract by the beginning date indicated above and complete the service by the completion date indicated above. 5. Compensation: City shall pay Consultant for service performed, including costs and expenses, the sum specified above. Payments shall be made within 30 days of the date of the invoice. Should the contract be prematurely terminated, payments will be made forwork completed and accepted to date of termination. 6. Ownership of Documents: All documents prepared by Consultant pursuant to this contract shall be the property of city. 7. Statutory Requirements: ORS 279C.505, 279C.515, 279C.520 and 279C.530 are made part of this contract. 8. Living Wage Requirements: If the amount of this contract is $20,688.86 or more, Consultant is required to comply with chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in this chapter, to all employees performing work under this contract and to any Subcontractor who performs 50% or more of the service work under this contract. Consultant is also required to post the notice attached hereto as Exhibit B predominantly in areas where it will be seen by all employees. 9. Indemnification: Consultant agrees to defend, indemnify and save City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogations, or other damages resulting from injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this contract by Consultant (including but not limited to, Consultant's employees, agents, and others designated by Consultant to perform work or services attendant to this contract). Consultant shall not be held responsible for an losses, ex enses, claims subro ations Contract for Personal Services less than $35,000.00, 08119/2017, Page 1 of 5 actions, costs, judgments, or other damages, directly, solely, and proximately caused by the negligence of City. 10. Termination: a. Mutual Consent. This contract may be terminated at any time by mutual consent of both parties. b. City's Convenience. This contract may be terminated at any time by City upon 30 days' notice in writing and delivered by certified mail or in person. C. For Cause. City may terminate or modify this contract, in whole or in part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: I. If City funding from federal, state, county or other sources is not obtained and continued at levels sufficient to allow for the purchase of the indicated quantity of services; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this contract or are no longer eligible for the funding proposed for payments authorized by this contract; or ff1. If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this contract is for any reason denied, revoked, suspended, or not renewed. d. For Default or Breach. L Either City or Consultant may terminate this contract in the event of a breach of the contract by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and intent to terminate. If the party committing the breach has not entirely cured the breach within 15 days of the date of the notice, or within such other period as the party giving the notice may authorize or require, then the contract may be terminated at any time thereafter by a written notice of termination by the party giving notice. ii. Time is of the essence for Consultant's performance of each and every obligation and duty under this contract. City by written notice to Consultant of default or breach may at any time terminate the whole or any part of this contract if Consultant fails to provide services called for by this contract within the time specified herein or in any extension thereof. iii. The rights and remedies of City provided in this subsection (d) are not exclusive and are in addition to any other rights and remedies provided by law or under this contract e. Obligation/Liability of Parties. Termination or modification of this contract pursuant to subsections a, b, or c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless whether such notice is given pursuant to subsections a, b, c or d of this section, Consultant shall immediately cease all activities under this contract, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall deliver to City all contract documents, information, works-in-progress and other property that are or would be deliverables had the contract been completed. City shall pay Consultant for work performed prior to the termination date if such work was performed in accordance with the Contract. 11. Independent Contractor Status: Consultant is an independent contractor and not an employee of the City. Consultant shall have the complete responsibility for the performance of this contract. Consultant shall provide workers' compensation coverage as required in ORS Ch 656 for all persons employed to perform work pursuant to this contract. Consultant is a subject employer that will comply with ORS 656.017. 12. Assignment and Subcontracts: Consultant shall not assign this contract or subcontract any portion of the work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or Subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract shall not create any contractual relation between the assignee or subcontractor and City. 13. Default. The Consultant shall be in default of this agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation it owes under the Contract; its QRF status pursuant to the QRF Rules or loses any license, certificate or certification that is required to perform the Services or to qualify as a QRF if consultant has qualified as a QRF for this agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type identified in its obligations under the Contract; or attempts to assign rights in, or delegate duties under, the Contract. 14. Insurance. Consultant shall at its own expense provide the following insurance: a. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation coverage for all their subject workers b. Professional Liability insurance with a combined single limit, or the equivalent, of not less than Enter one: $250,000, $500,000, $1,000,000,$2,000,000 or Not Applicable for each claim, incident or occurrence. This is to cover damages caused by error, omission or negligent acts related to the professional services to be provided under this contract. C. General Liability insurance with a combined single limit, or the equivalent, of not less than Enter one: $200,000, $500,000, $1,000,000, $2,000,000 or Not Applicable for each occurrence for Bodily Injury and Property Damage. d. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than Enter one: Contract for Personal Services less than $35,000.00, 06119/2017, Page 2 of 5 $100,000, $500,000, $1,000,000, or Not Applicable for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. e. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without 30 days' written notice from the Consultant or its insurer(s) to the City. f. Additional Insured/Certificates of Insurance. Consultant shall name The City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Contract. The consultant's insurance is primary and non-contributory. As evidence of the insurance coverages required by this Contract, the Consultant shall furnish acceptable insurance certificates prior to commencing work under this contract. The certificate will specify all of the parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If requested, complete copies of insurance policies; trust agreements, etc. shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions and/or self-insurance. 15. Governing Law; Jurisdiction; Venue: This contract shall be governed and construed in accordance with the laws of the State of Oregon without resort to any jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or proceeding (collectively, "the claim") between the City (and/or any other or department of the State of Oregon) and the Consultant that arises from or relates to this contract shall be brought and conducted solely and exclusively within the Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Consultant, by the signature herein of its authorized representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United States Constitution, or otherwise, from any claim or from the jurisdiction. 16. THIS CONTRACT AND ATTACHED EXHIBITS CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS CONTRACT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS CONTRACT. CONSULTANT, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT HE/SHE HAS READ THIS CONTRACT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. 17. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this contract within the City's fiscal year budget. Consultant understands and agrees that City's payment of amounts under this contract attributable to work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this contract. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this contract without penalty or liability to City, effective upon the delivery of written notice to Consultant, with no further liability to Consultant. Certification. Consultant shall sign the certification attached hereto as Exhibit A and herein incor orated b reference. Consultant: City of Ashland By By Signature Department Head Print Name Print Name Title Date (W-9 is to be submitted with the signed contract. Purchase Order No. Contract for Personal Services less than $35,000.00, 06/19/2017, Page 3 of 5 EXHIBIT A CERTIFICATIONS/REPRESENTATIONS: Contractor, under penalty of perjury, certifies that (a) the number shown on the attached W-9 form is its correct taxpayer ID (or is waiting for the number to be issued to it and (b) Contractor is not subject to backup withholding because (1) it is exempt from backup withholding or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (Iii) the IRS has notified it that it is no longer subject to backup withholding. Contractor further represents and warrants to City that (a) it has the power and authority to enter into and perform the work, (b) the Contract, when executed and delivered, shall be a valid and binding obligation of Contractor enforceable in accordance with its terms, (c) the work under the Contract shall be performed in accordance with the highest professional standards, and (d) Contractor is qualified, professionally competent and duly licensed to perform the work. Contractor also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, it is an independent Contractor as defined in the contract documents, it is authorized to do business in Oregon, it is authorized to act on behalf of the City, and Contractor has checked four or more of the following criteria that apply to its business. (1) 1 carry out the labor or services at a location separate from my residence or is in a specific portion of my residence, set aside as the location of the business. (2) Commercial advertising or business cards or a trade association membership are I purchased for the business. (3) Telephone listing is used for the business separate from the personal residence listing. . (4) Labor or services are performed only pursuant to written contracts. (5) Labor or services are performed for two or more different persons within a period of one year. (6) I assume financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission insurance or liability insurance relating to the labor or services to be provided. Contractor (Date) Contract for Personal Services less than $35,000.00, 0611912017, Page 4 of 5 CITY OF ASHLAND, OREGON EXHIBIT B City of Ashland LIVING WAGE . per. hou[ effectiye,June 30, 2017...:,`: (Increases annually.every June 30. by the.. Consumer Price Index) qunder portion of business of their 401 K and IRS eligible employer, if the employer has cafeteria plans (including ten or more employees, and childcare) benefits to the has received financial . amount of wages received by FFor all hours assistance for the project or the employee. business from the City of service contract between their Ashland in excess of ➢ Note: "Employee" does not employer and the City of $20,688.86. include temporary or part-time Ashland if the contract employees hired for less than exceeds $20,688.86 or more. ➢ If their employer is the City of 1040 hours in any twelve- Ashland including the Parks month period. For more ➢ For all hours worked in a and Recreation Department. details on applicability of this month if the employee spends policy, please see Ashland 50% or more of the ➢ In calculating the living wage, Municipal Code Section employee's time in that month employers may add the value 3.12.020. working on a project or of health care, retirement, For add itional information: Call the Ashland City Administrator's office at 541488-6002 or write to the City Administrator, City Hall, 20 East Main Street, Ashland, OR 97520 or visit the city's website at www•ashland.or.us. Notice to Employers: This notice must be posted predominantly in areas where it can be seen by all employees. CITY OF ASHLAND Contract for Personal Services less than $35,000.00, 06/1912017, Page 5 of 5 CONSULTING EXHIBIT C ENGINEERS EUGENE, OR January 24, 2018 Corporate Office 541.683.6090 Karl Johnson, E.I.T. LAKE OSWEGO, OR City of Ashland Engineering Department 503.620.6103 20 East Main Street SALEM, OR Ashland, OR 97520 503.589.4100 MEDFORD, OR RE: Hersey St. Reconstruction from N. Mountain Ave. to N. Main St. 541.774.5590 VANCOUVER, WA Dear Karl: 360.314.2391 www.abec.com Thank you for considering OBEC Consulting Engineers for your Hersey St. Reconstruction from N. Mountain Ave. to N. Main St. project. Based upon our understanding of the project, we have prepared the following scope of services along with the attached breakdown of costs. Project Understanding Hersey Street provides important east-west connectivity for residential and commercial traffic, totaling approximately 3,500 ADT. Traffic loading, shallow groundwater, and high water events all contribute to the deteriorating asphalt surface. The Hersey Street bridge crossing at Ashland Creek has a capacity of 500cfs (below the recommended 3100 cfs for Ashland Creek) prior to over topping and a small section of the road section is within the designated 100-year flood zone. The City has strained to adequately manage underground drainage in sections of Hersey Street and has had several pothole and travel lane repairs. There are wetlands on the south side of Hersey just east of Oak Street and there are apparent springs and natural underground water along Hersey Street. This project will rebuild (or other appropriate designs such as grind/inlay in some areas) the road in-between the curb/gutter from N. Main Avenue to N. Mountain Street. ADA ramps and pedestrian crossings will need to be updated to meet current standards. OBEC's previously obtained topographic survey and right-of-way information will be used to complete the design. There are several utilities within the project limits that will require updated coordination. Our proposed detailed scope of services for the design phase is as follows: TASK I PROJECT MANAGEMENT AND COORDINATION Task 1.1 Project Management and Coordination The major objectives of this task are to schedule, coordinate, and supervise project work and to establish lines of communications between OBEC and City staff. OBEC shall keep the City project January 24, 2018 Page 2 ' i CONSULT, £NGIN££B.S manager informed of the project work progress and aware of changes that may affect the project design, schedule, and related costs. OBEC will be responsible for the following project management tasks: • Schedule, coordinate, and supervise project work • Maintain communications and coordination with City staff • Monitor scope, schedule & budget for the project • Produce monthly invoices and progress reports (assumed to be no more than twelve) Task 1.2 Project Meetings OBEC staff will lead project meetings to discuss project details, review comments and updates and provide a written summary and create an action item list as necessary. For budgeting purposes, it is assumed that two OBEC staff members from the Medford office will attend up to 3 separate coordination/review meetings to discuss the project with the City staff and coordinate design details at a kick-off meeting and after each design milestone. TASK 2 LOCATION SURVEYING AND MAPPING j This is an English unit Project. All Consultant deliverables must be reviewed and approved by OBEC's Professional Land Surveyor ("PLS"), registered in the State of Oregon. OBEC has previously surveyed the northerly half of Hersey Street from its intersection with N. Main Street to its intersection with Oak Street. OBEC used the Oregon Coordinate Reference System - Grants Pass- Ashland Zone, based on the NAD83 (2011) Epoch 2010 datum. TerraSurvey performed a topographic survey along the northerly side of Hersey Street from its intersection with Oak Street easterly to its intersection with N. Mountain Avenue back in 2008. TerraSurvey used an assumed coordinate system. Their survey was used to design some street Improvements and the project has been built which has changed some of the site conditions from the 2008 survey. OBEC will verify the accuracy of that survey data and tie some key points to adjust TerraSurvey's data to the OBEC datum, and to locate new features. OBEC will collect topographic data along the southerly half of Hersey Street between N. Main and Oak Street. OBEC will check the accuracy of TerraSurvey's survey data from 2008 and in-fill their data with new topographic data from Oak Street to N. Mountain Avenue. OBEC shall also collect topographic data along the southerly side of Hersey Street between Oak Street and N. Mountain Avenue. The incorporation of this survey data will be completed under Task 2.3. Task 2.1 Horizontal and Vertical Control Network OBEC will establish a horizontal and vertical control network and set survey control points to tie (survey) found monuments within the Project limits. The horizontal datum used by the Consultant must be the Oregon Coordinate Reference System - Grants Pass-Ashland Zone, based on the NAD83 (2011) Epoch 2010 datum. The vertical datum used by Consultant must be City of Ashland NGVD 29(56). Consultant shall establish primary geodetic control monuments, (such as 5/8" iron rod with plastic cap or other permanent markers) and maintain line of sight throughout N t I January 24, 2018 Page 3 Im CONSUIRNG ENGINEERS q ma., qb~ the entire Project limits. These control monuments must be placed in locations by Consultant, such that they can be utilized during construction. Consultant shall run digital level loops to control points that are utilized in preparing the Digital Terrain Model ("DTM"). Strategic points used to develop survey DTM in non-critical areas must be no more than one (1) "shot" out from a network control point. Deliverable(s)/Schedule: • Horizontal and Vertical Control points will be incorporated into the Horizontal Control, Monument Recovery and Retracement Survey in Task 2.4. Task 2.2 Monument Recovery OBEC shall perform a search of survey records on file with County and City, to perpetuate the location of monuments that may be disturbed or destroyed during a future construction project. Consultant shall research deeds and surveys of record, including but not necessarily limited to, j property surveys, county road surveys, original county road resolutions, section corner surveys, and DLC surveys. OBEC shall provide tax assessor maps, property deed search, and copies of all pertinent documents to the City. j I OBEC shall survey found property corners, Government Corners, other survey monuments, property line fences and lines of occupation within the limits of the Project. OBEC shall provide at least one (1) PLSS (Public Land Survey System corner tie. i OBEC shall keep copies of the research data collected such as surveys, deeds, assessors' maps, county road maps, government corner surveys, etc., in the Project file. Deliverable(s)/Schedule: • Recovered monuments incorporated into Horizontal and Vertical Control points will be incorporated into the Horizontal Control, Monument Recovery and Retracement Survey in Task 2.4. • Electronic copies of all research data collected. Task 2.3 Location Survey. Base map and Digital Terrain Model OBEC shall contact the Oregon Utility Notification Center (OUNC) and order utility locates for the entire project area. OBEC shall perform a topographic survey within the limits described above. OBEC shall produce a topographic base map and the Digital Terrain Model (DTM) to be used for the design of this project. The project shall be drafted using a scale of 1 "=50'. Deliverable(s)I Schedule: • Topographic base map and DTM shall be submitted to the City within ten (10) weeks of Notice to Proceed (NTP). • Electronic copy of the field notes. i I January 24, 2018 Page 4 ► CAVNING ENWN(£RS i I Task 2.4 Existing R/W and Boundary Resolution OBEC shall resolve the centerline and right of way lines of Hersey Street. OBEC shall obtain listing kits for the properties that adjoin the right of way lines of Hersey Street. OBEC shall use the recovered monuments and research records to aide in the retracement of Hersey Street. OBEC shall submit the final "Horizontal Control, Monument Recovery and Retracement Survey" to the Jackson County Surveyor's office for recording. Deliverable(s)/Schedule: • Submit an electronic copy of the recorded "Horizontal Control, Monument Recovery and Retracement Survey" to the City within 16 week of NTP. Task C2.5 Right of Way Engineering (Mapping and Descriptions) (CONTINGENCY TASK) Once the Preliminary Design has been approved by the City, OBEC shall prepare descriptions and exhibits for any right of way acquisition or easement acquisitions needed for the project upon request. Task C2.5.1 Legal Descriptions and Exhibit Maps (CONTINGENCY TASK) Upon request by the City, OBEC shall prepare legal descriptions and exhibit maps for up to five (5) parcels for the purpose of fee acquisition and/or easements for the Project. Deliverable(s)15chedule: • Electronic and hard copy (8-1/2"x14") legal descriptions and exhibit maps to the City within eight (8) weeks of the following release of this contingency task . Task C2.5.2 Bulletin Exhibit Maps (CONTINGENCY TASK) Upon request by the City, OBEC shall prepare bulletin exhibit maps for up to ten (10) parcels for the purpose of temporary construction easements. No easement descriptions will be prepared and OBEC will not stake these easements in the field. Deliverable (s) /Schedule: • Electronic and hard copy (8-1/2"x 14") legal descriptions and exhibit maps to the City within eight (8) weeks of the following release of this contingency task. Task C2.5.3 Acquisition Staking (CONTINGENCY TASK) OBEC shall stake the limits of the proposed property acquisitions in the field for up to five (5) parcels prepared in Task C2.5.1. OBEC will stake the parcels one time only. Deliverable(s)/Schedule: • Consultant shall place physical stakes or paint marks within one (1) week of notification by the City. a January 24, 2018 Page 5 CONSULMG ENG1NIERS i TASK 3 ENVIRONMENTAL COORDINATION/SUPPORT Task 3.1 Coordination. Accumulation and Review of Data Consultant shall obtain and review existing environmental information related to the Project site. Consultant shall coordinate and communicate with City, resource agencies, and project team to begin environmental tasks, verify schedule, identify process and procedures, and update resource agencies about the project. Consultant shall verify that assumptions made in this SOW are valid and shall investigate any data gaps. Deliverable(s)/Schedule: • Coordination emails and phone log documentation upon request Task 3.2 Wetland/Waters Determination and Memorandum Consultant shall complete a wetland field determination and OHWM demarcation for the Project Study Area (PSA). ii Consultant shall use available data (including but not limited to: soil surveys, aerial photos, National/Local Wetland Inventory maps (NWI/LWI)), as well as data gathered in the field to s document the presence or absence of wetlands within the PSA. f Consultant shall: • Determine wetland boundaries within the PSA in accordance with the criteria and methods described in the 1987 Corps of Engineers Wetland Delineation Manual (Environmental Laboratory Technical Report Y-87-1) and appropriate Regional Supplements. • Place flags in the field to show wetland and upland sample plot locations, and the wetland boundaries. Label and number the flags to identify their function. • Ensure that field methods used and data collected meet the USACE and DSL technical requirements for wetland delineations and ordinary high water demarcations. Collect and record wetland delineation data on approved wetland determination data sheets for possible inclusion with a wetland delineation report. • Place flags in the field to show the OHWM elevation of all jurisdictional surface waters. Assess the OHWM elevation using City accepted field indicators. • Determine active channel width (ACW) of all waters identified in the PSA. ACW shall be ! determined based on current ODFW and NMFS practices. Consultant shall prepare one Wetland Determination Technical Memo. The memo must include: • Description of the PSA; • Summary of existing available information, noting the standard information that is not available (i.e., if no County soil survey coverage exists for the area, then it must be { stated); January 24, 2018 Page 6 ' i CONSIVING ► ENG1NLIHS • Field reconnaissance methods; • Results of field reconnaissance; • Data Sheets; • Color photographic record depicting on-the-ground conditions Deliverable(s): • Draft and Final Wetland Determination Technical Memorandum Schedule: • One month following completion of the field survey Task 3.3 ESA No Effect Memo and Rare Plant Survey Consultant shall conduct a field survey of the PSA for the presence of ESA listed plant, fish and wildlife species and their potential suitable habitat. Consultant shall contact the Oregon Biodiversity Information Center to obtain data regarding listed threatened and endangered plant and animal species as well as those proposed for listing under the federal and state ESA that may occur within the Project area. Consultant shall confirm that Federally-listed plant, fish and wildlife species and their habitat will not be affected by the Project. Consultant shall communicate with local Oregon Department of Fish and Wildlife ("ODFW"), NMFS and/or United States Fish and Wildlife Service ("USFWS") staff and shall conduct agency database searches to acquire ESA information for the Project area. After all pertinent information is gathered and analyzed, Consultant shall prepare a No Effect Memoranda ("NE Memo") for the Project area. Consultant shall coordinate with design staff and City to develop appropriate measures for avoidance of effects on the listed species covered in the NE Memo if avoidance measures are necessary to obtain a "no effect" determination. Consultant shall develop appropriate avoidance measures to comply with the Migratory Bird Treaty Act and include those avoidance measures in the project specifications. It is anticipated that the Project will not result in any effects to listed fish, wildlife and botanical species. Coordination with resource agency staff will occur by telephone and e-mail; no additional site visits or meetings will be required. Deliverable(s)/Schedule: • Draft and Final ESA No Effect Memorandum Task 3.4 Floodplain Permit Consultant shall coordinate with City Planning staff to identify all requirements for local floodplain permit that will be necessary for sidewalk work within the floodway. Consultant shall prepare one (1) permit application and supplemental materials for submittal to the City Planning January 24, 2018 Page 7 / i CONSWING CNGINCMS staff. Once submitted, Consultant shall be available to address comments during the City's Planning Department's permit review period if needed. Deliverable(s): • Draft and Final Floodplain Permit application Schedule: • One month following approval of the Advance plans Task 3.5 DEQ 1200-C Permit Consultant shall develop a complete 1200-C Application package meeting Oregon Department of Environmental Quality (DEQ) standards. Consultant shall submit the 1200-C permit to DEQ for approval. City is responsible for all fees and obtaining the land use signature for permit submittal. Deliverable(s): • Draft and Final DEQ 1200-C permit application Schedule: • One month following approval of the Advance plans Task C3.6 Wetland Delineation Report (CONTINGENCY TASK) Upon request by the City, Consultant shall prepare a Wetland/Waters of the U.S. Delineation Report (Wetland Delineation Report) in accordance with the Department of State Lands (DSL) standards. Consultant's report shall include all wetland data sheets obtained in the field. Consultant shall prepare appropriate graphics to accompany the report and shall include a site location map, Local Wetland Inventory (LWI) map, soil survey map, and representative photographs. Consultant's Wetland Delineation Report shall also include wetland delineation boundary mapping (figures) as finalized by Consultant. City will be responsible for all fees associated with DSL review and approval. Deliverable(s): • Draft and Final Wetland Delineation Report Schedule: • Two months following release of this contingency task Task C3.7 Joint Permit Application (CONTINGENCY TASK) Upon request by the City, Consultant shall prepare a Joint Permit Application (JPA) and Wetland/Waters Functional Assessment for a USACE Section 404 Nationwide Permit, Oregon Department of Environmental Quality (DEQ) Section 401 Water Quality Certification and a DSL General Permit (GP), to authorize work within jurisdictional waters and wetlands within the PSA. January 24, 2018 Page 8 f ~ CONSU111NG ENGINEEIN Consultant shall provide pre-submittal coordination with representatives of the USACE and DSL to confirm permitting requirements and application procedures. Consultant shall conduct a pre- application meeting at the offices of the USACE and DSL (or on-site) to review the Project plans and to assess initial Agency comments on the Project. Consultant shall prepare drawings, maps, photographs, project descriptions, and additional information for inclusion in the JPA. The JPA shall also include a functional assessment of delineated wetland and waters features within the PSA. It is assumed that the wetland and waters functional assessment can be completed using Best `e Professional Judgment (BPJ) and a formal, stand alone, wetland/waters functional assessment will FE. not be required. Consultant shall provide engineering plans, concept drawings, site plan details, and project description information as required to quantify and document wetland and waters impacts for the JPA. Consultant shall prepare permitting documents for County signature and shall submit required application materials directly to Agencies. Consultant shall address comments and questions from the DSL, USACE, DEG, and NMFS to facilitate the permitting process. It is assumed that any mitigation required will be minimal and can be satisfied by purchasing wetland/waters mitigation credits from a wetland bank and/or payment in lieu, no on-site compensatory wetland mitigation coordination and planning will be required. No formal, standalone, wetland/waters mitigation plan will be required. The City is responsible for obtaining land use department signatures and payment of all fees associated with submittal and review of the JPA. Deliverable(s): • Draft and Final JPA. Final to be submitted to DSL, USACE, and DEG. Schedule: • Three months following release of this contingency task Task C3.8 SLOPES Programmatic MOP Documentation (CONTINGENCY TASK) Upon request by the City, Consultant shall use the USACE SLOPES V programmatic biological opinion (BO) to evaluate the effects of the project on Endangered Species Act (ESA) listed fish species that may be impacted by the project. Consultant shall prepare programmatic SLOPES V documentation to obtain the Section 404 permit from the USACE. Consultant shall coordinate with USACE, NMFS, DSL, ODFW, and DEG to obtain the information required by USACE and NMFS to complete the programmatic documentation. It is anticipated that one on-site visit with NMFS and the USACE will be required for this task and the project will be designed to meet all applicable SLOPES design standards and requirements. Deliverable(s): • Draft and Final SLOPES Compliance Report I January 24, 2018 Page 9 ' t CON.SULRNG i ENGINEERS 4W Schedule: • Three months following release of this contingency task Task C3.9 ODFW Fish Passage Plan (CONTINGENCY TASK) Upon request by the City, Consultant shall evaluate fish passage for one crossing according to ODFW criteria and prepare one ODFW Fish Passage Plan. The Fish Passage Plans must identify and address ODFW fish passage concerns and requirements per the ODFW Fish Passage Plan form. Consultant shall coordinate with ODFW and obtain their concurrence/approval. It is anticipated that one on-site will be required with ODFW and the project will be designed to meet ODFW fish passage design criteria. Deliverable(s): • Draft and Final ODFW Fish Passage Plan Schedule: • Three months following release of this contingency task Task C3.1 0 Physical and Environmental Constraints Permit (CONTINGENCY TASK) Upon request by the City, Consultant shall prepare one City Physical and Environmental Constraints (P&E) permit application meeting all applicable submittal requirements. Consultant shall prepare for and attend one meeting with City land use department to obtain permit requirements, discuss submittal requirements, and obtain relevant Information associated with the P&E permit application. Consultant shall be available to answer questions and provide additional information to city planners following submittal of the permit application. City will be responsible for all fees associated with the review and approval of this permit application. i Deliverable(s): • Draft and Final Physical and Environmental Constraints permit application. Schedule: • Three months following release of this contingency task TASK 4 PUBLIC INVOLVEMENT i I Task 4.1 Public Involvement Support & Meetings OBEC will support the City with the public involvement process that will inform and seek feedback from businesses and residents on Hersey Street within the project limits. In cooperation with the City, OBEC will perform the following public involvement services: ■ Develop presentation materials appropriate for public meetings i I I January 24, 2018 Page 10 cnNsucINr MINDS ■ Attend and participate in conducting two (2) public meetings / workshops with local businesses and residents ■ Document feedback from businesses and residents to be Incorporated into the design as agreed to by the City ■ Schedule and attend one-on-one follow-up meetings with businesses most severely impacted by construction It is assumed that City staff will provide a suitable location for all public meetings and advertise them as appropriate. For budgeting purposes, it is assumed that OBEC's Project Manager and Roadway lead or Construction Project Manager shall attend the Open House that will last no more than three (3) hours, not including travel time. Deliverable(s)lSchedule: Consultant shall prepare the below materials (2 sets, one for each meeting) after the Preliminary design submittal for display at a public meeting: • roll maps including R/W acquisition and aerial graphics • project drawings/details (utilizing plan sheets created in tasks 10 and 11) • public comment log TASK 5 UTILITY COORDINATION Task 5.1 Utility Location and Coordination OBEC shall review utilities Identified to be within the project limits, initiate contacts with utilities, and coordinate relocations needed for construction of the Project. This work includes, but Is not limited to, coordinating and collecting utility-provided three-dimensional location of any underground utilities that may be in conflict with the Project work, and coordinating with the utility owners to resolve those potential conflicts. OBEC shall schedule, attend and document on-site meetings with potentially affected utilities. The meetings shall be conducted on the Project site after impacts have been identified. For budgeting purposes, attendance at a maximum of two (2) site meetings is anticipated, each of which may last up to three (3) hours including travel time. For each private utility found in potential conflict with the proposed design, OBEC shall prepare a Utility Conflict Notification Letter informing the utility of the potential conflict and the need to relocate/adjust the utility facility and required timing of relocation. OBEC shall work with each private utility to verify a relocation plan that is not in conflict with the Project. Once OBEC has confirmed the relocation plan with each utility, a Timing Requirements Letter will be sent to the each affected utility. When Consultant has made proper arrangements with each utility owner, to either clear the right of way of their utility facilities prior to construction, or for relocation to occur during construction so as to not delay the contractor, OBEC shall provide the City with a written summary. (I January 24, 2018 Page 11 ! ► 06ULM ► ENONIMS OBEC shall coordinate locations and relocations with the City on any City-owned utilities that are within the project limits. Assumption: • No reimbursable utility relocations Deliverable(s)/Schedule: • Electronic copy of Utility Conflict / Project Notification letters to the City as per project schedule • Electronic copy of approval of each utility's relocation plan and Timing Requirements letters as per the project schedule TASK 6 GEOTECHNICAL GEOLOGIC / PAVEMENT DESIGN SERVICES Task 6.1 Site Reconnaissance, Exploration and Testing Work Plan Consultant shall conduct a field reconnaissance visit for planning the necessary field investigation work and to assess the temporary traffic control needs for the field investigation. Deliverable(s)/Schedule: Consultant shall provide: is Work plan and traffic control plan for the field investigation work r Task 6.2 Field Exploration and Laboratory Testing Consultant shall perform the pavement and geotechnical explorations and laboratory testing as needed in order to evaluate the subsurface conditions and to develop pavement and geotechnical designs. The anticipated field exploration and laboratory testing program is provided below. Geoiechnica) and Pavement Borings: We will conduct up to Ten (10) geotechnical and/or pavement borings. At each location conducted in paved areas, a core sample of the bound layers of the pavement will be retrieved using a diamond-bit core drill. The pavement layers and subgrade soil, where encountered, will be visually classified; the depth and thickness of pavement layers will be measured; and grab samples of subgrade soil, where encountered, will be retrieved for laboratory water content determination and visual reclassification. The core samples will be inspected for cracking, delamination, and indications of asphalt stripping damage. We will characterize the soil and groundwater conditions at each of the borings in order to assist us in developing recommendations for subsurface drainage, earthwork and soil improvement or modification. Each of the geotechnical and pavement borings will be logged to a maximum depth of 5-ft. below the surface. E January 24, 2018 Page 12 r CON911.77NG ENG1NCIRS We have assumed that all borings will be drilled with a hollow stem or solid-stem auger drilling technique and that rock-coring will not be performed. Laboratory Testing: Water contents, sieve analyses, expansive index tests, and Atterberg limits tests shall be conducted by Consultant on soil samples obtained from the borings in order to classify the soils and estimate their engineering properties. Assumptions: • Water contents will be conducted on grab samples obtained at approximately 1-ft. intervals. Up to three (3) Atterberg limits tests or sieve analysis tests, and up to four (4) expansive index tests will be performed. • The depth of the exploration below the bound layers will be patched using excavated materials compacted by a vibratory hammer and the core hole through the bound layers will be patched using Instant Road Repair, a high performance polymer modified asphaltic patching material, compacted by vibratory hammer. A Consultant representative will conduct and direct the pavement coring work. Task 6.3 Geotechnical Design Services Task 6.3.1 Geotechnical Design Services Consultant shall perform analyses of the field and laboratory test data to develop geotechnical recommendations for construction of drainage improvements. The geotechnical design must include development of typical drainage details, location, and extent of the drainage improvements. Task 6.3.2 Geotechnical Design Report Consultant shall prepare a "Geotechnical Report" summarizing the subsurface soil and groundwater conditions, and design, and construction recommendations. The Geotechnical Report must summarize the field observations, subsurface conditions, laboratory test data, analysis results, construction issues and geotechnical recommendations for soil improvement and new drainage improvements. Task 6.4 Pavement Design Services Consultant shall provide all equipment, labor, materials and traffic control required for the field investigation and the development of any new construction, reconstruction, or rehabilitation pavement designs as described herein. All work related to completing the pavement design(s) shall be conducted in accordance with the latest edition of the ODOT Pavement Design Guide. January 24, 2018 Page 13 1 ► CONSULTING ENGINEERS QW Assumptions: • The street segment in this SOW for pavement design along with the design work scope is shown in Table 6.4.1. Table 6.4.1 Project Segment and Pavement Design Work Scope Project Centerline Assumed Design Street From To length (ft.) Alternatives to be I provided i Hersey St N. Mtn. Ave. N Main St 5,312 20 and 40 Year Design Periods Pavement Rehabilitation Pavement Reconstruction E Full Depth Reclamation Since it is not known at this time whether full depth reclamation (FDR) is a feasible alternative, we have included the laboratory testing for this alternative as a contingency task. However, we will obtain sufficient sample during our field investigation to complete the laboratory testing, if FDR appears to be viable and the contingency task is authorized. Task 6.4.1 Pavement Testing I Consultant shall conduct falling weight deflectometer (FWD) testing between the limits shown in Table 6.4.1. The FWD testing shall be conducted at 100-ft intervals in both directions (approx. 106 tests). The FWD shall meet the calibration requirements given in the ODOT Pavement Design Guide. Assumptions: • FWD testing work shall be conducted during Monday through Friday between the hours of 9 AM and 4 PM. • Consultant shall provide traffic control for lane closures in accordance with the Oregon Temporary Traffic Control Handbook. Task 6.4.2 Pavement Analysis Consultant shall perform an engineering analysis of the data in accordance with the requirements of the ODOT Pavement Design Guide for the development of the pavement design(s) identified in Table 6.4.1. ) i : January 24, 2018 Page 14 9 I ► CONSULTING i ENGINEERS 1W Task 6.4.3 Pavement Design Report Consultant shall prepare a pavement design report to document all phases of the pavement design process, provide the recommended design alternative(s), as well as the materials and specifications for construction. Assumptions: • Consultant shall utilize a qualified traffic counting service in order to obtain a 24 hour classified traffic count. The truck traffic shall be classified by the FHWA axle category. • The City shall provide an estimate of the annual growth rate in truck traffic. If no E growth data is available an assumed annual growth rate of 2% will be used. 'I. • The pavement design is for Asphalt Concrete Pavement ("ACP") based on the i alternatives shown in Tables 6.4.1 (as feasible).I • The pavement shall be designed in accordance with the 1993 AASHTO design methodology. • Consultant shall provide material recommendations for all pavements within the project boundaries, subgrade preparation in new pavement areas (as applicable) and mitigation of deleterious soil or fill conditions, if appropriate. Deliverable(s)/Schedule: Consultant shall provide: • A draft pavement report will be submitted for review by the City. • A final stamped pavement design report in PDF format will be provided that incorporates the review comments by the City. Task 6.5 Meetings Consultant shall attend a design review meeting to discuss the findings and recommendations of the Geotechnical and Pavement Designs. Assumptions: • Meeting will be held at City's Ashland office Task C6.6 FDR Laboratory Testing (CONTINGENCY TASK) If FDR appears to be a feasible pavement design alternative and the City authorizes this task, then laboratory testing will be conducted in order to estimate the design cement content. The laboratory testing will be completed in general accordance with the Portland Cement Association (PCA) design procedures Soil-Cement Laboratory Handbook, except that acceptance criteria will be based on compressive strength test results, i.e. rather than freeze-thaw tests. A moisture- density (compaction) test will be performed on up to two samples in accordance with ASTM D558 Moisture-Density Relations of Soil-Cement Mixtures in order to estimate the optimum moisture i i January 24, 2018 UCTRAV Page 15 i EONSNffRS EIV61 content and maximum dry density of the soils. Compressive strength testing will be conducted on up to two (2) different soil types in order to estimate the range of soil cement requirements. For each soil sample, two soil-cement specimens at three different cement contents (12 total samples) will be prepared and cured at 100% humidity for seven days, soaked in water for at least four hours, and tested for compressive strength in accordance with ASTM D1 633 Compressive Strength of Molded Soil-Cement Cylinders. 1 TASK 7 HYDROLOGIC, HYDRAULIC AND STORMWATER ANALYSES The major objectives of this task are to gather information about the project area and review the existing City's GIS layout and OBEC's topo provided in Task 2.3. OBEC will visit the project site to observe existing conditions and features, taking photos and measurements as needed, and make a basic inventory of existing improvements within the project area for cost estimating purposes. OBEC shall analyze exiting storm systems on Hersey Street from N. Main and N. Mountain Avenue for the 25 year (24hr) storm event (per City Standards) and if needed provide recommended alternatives. OBEC shall evaluate the extent of the improvements needed, identify associated impacts, and present recommendations for solutions in a memo format. Task 7.1 Site Reconnaissance Consultant's stormwater expert shall visit the Project site to inspect existing drainage conditions. The inspection must assess existing drainage patterns, identify existing storm sewer facilities within or near the Project site, and determine potential solutions for installing new storm drainage facilities. A photographic log shall be developed. Deliverable(s)/Schedule: Consultant shall include: • Summary of site conditions into Stormwater Management Report under Task 7.3. Task 7.2 Stormwater Runoff Analysis Consultant shall calculate the volume of Stormwater runoff from proposed semi-pervious and impervious surfaces within the Project limits and consider appropriate stormwater collection, treatment and management methods per the City of Ashland Stormwater Design Standards and the Rogue Valley Stormwater Quality Design Manual. It is assumed that stormwater runoff and all collected flows will be directed to existing or future storm drain infrastructure adjacent to the Project area. Analysis of downstream storm drain capacity is not included in this scope. Deliverable(s)/Schedule: Consultant shall include: i • Results of stormwater analysis into Stormwater Management Plan under Task 7.3. j I a 6 i January 24, 2018 Page 16 ' i CON,SUI TING ENGINURS Task 7.3 Stormwater Management Plan Consultant shall summarize findings and recommendations in a Stormwater Management Plan. This plan must delineate the areas of runoff, characterize runoff conditions, discuss existing soil infiltration rates, and recommend areas where runoff can infiltrate, bio-swales can be installed, and/or where stormwater improvements will direct runoff into the City's storm system. Maps must be included in the report that delineates the drainage patterns and infiltration areas. Deliverable(s)/Schedule: Consultant shall provide: • Draft Stormwater Management Plan to be incorporated into Preliminary Design Package under Task 10.1. • Final Stormwater Management Plan to accompany Advance Plans Package under Task 11.1. Task 7.4 Hydraulic Report and No-Rise Certification OBEC shall utilize previously completed site-specific hydraulic model for sidewalk construction within the floodway. The site-specific hydraulic model must contain three (3) conveyance alternatives: (1) the "natural" channel, (2) the existing culvert, and (3) the existing culvert with new sidewalk construction conditions. Consultant's model analyses must determine water surface profiles, velocities, channel characteristics, and changes In backwater elevations. Consultant shall prepare a no-rise analysis for the proposed improvements to the Hersey Street sidewalk that fall within the regulated floodway of Ashland Creek. Consultant shall verify a no- rise In the 100-year base flood elevation in Ashland Creek. Consultant shall summarize findings and recommendations from task 7.4 in a Hydraulic Report in accordance with the current ODOT Hydraulics Manual. Consultant's Hydraulic Report must describe the impacts of sidewalk construction on hydrology and hydraulics including design recommendations for grading and surfacing. Consultant's Hydraulic Report must include the following: site hydrology, flood history (if known from Project information), flood flows, velocities and water surface elevations, and summary output from the HEC-RAS hydraulic analysis. The report must include a certificate stamped by the engineer stating that Project improvements will result in a no-rise condition to the 100-year base flood elevation in Ashland Creek. Consultant shall respond to review comments with a letter of response, and revised or amended Hydraulic Report as required. Deliverable(s)/Schedule: Consultant shall include results of hydraulic analysis in deliverables for Task 7.4 - Hydraulic Report I • Consultant shall prepare and submit Hydraulics Report and No-Rise Certificate to the City within four (4) weeks of Preliminary Plans submittal for Task 10.1. 'a I January 24, 2018 Page 17 ' It CON-MI NG ENGINEERS TASK 8 TRAFFIC ENGINEERING AND MANAGEMENT Task 8.1 Traffic Analysis Consultant conduct traffic operations analysis at the Hersey Street/Oak Street intersection for both existing and future 2040 PM peak hour conditions to verify lane configuration and identify operational deficiencies. Consultant shall make one site visit during PM peak hour conditions to observe traffic operations. Future traffic volumes will be developed from travel demand forecasts provided by the Rogue Valley Council of Governments or the current version of the City's Transportation System Plan. Consultant shall collect the following traffic data for use in the analysis: • One (1) bi-directional 24-hour traffic volume and truck classification count along Hersey Street within the project limits. • AM and PM peak hour turn movement counts at the intersection of Hersey Street/Oak Street The most recent five years of available collision data for the Project limits will be obtained from ODOT's database, and analyzed as part of this task. The results of the analysis will be summarized in a technical memorandum. No traffic signal warrant analysis is included as part of this task. Deliverable(s)/Schedule: Consultant shall provide: • Draft and Final Traffic Analysis memorandum • One site visit during PM peak hour conditions • Attendance via phone at one comment review meeting 8.2 Lighting Analysis, Lighting, Signing, and Striping Design Consultant shall complete a lighting analysis for the project corridor using AGI32 Lighting Analysis software. The focus of the analysis will be to evaluate existing light levels at intersections/crossing locations, and look at the possibility of upgrading existing roadway lighting to LED. Consultant shall review existing luminaire information in the field. Light levels will be per the minimum J recommended light levels published in the Roadway Lighting IESNA RP-08 guidelines. Preferred luminaire model, mounting height, and arm length will be coordinated with the City. This task does not include an evaluation of illumination alternatives. The results of the lighting analysis will be summarized in a technical memorandum. Consultant shall prepare combined plans, specifications, and construction cost estimates for the roadway lighting, permanent signing, and pavement markings associated with the proposed improvements. The design must be completed in accordance with applicable MUTCD and City j standards. It is assumed that the plans will include roadway lighting, permanent signing, and pavement marking. Consultant shall incorporate applicable City Standard Drawings into the 'l 3' January 24, 2018 Page 18 1 i COIaSUUm fNGINUBS t drawing set as detail sheets stamped by the Consultant. The following plan sheets are assumed as part of this task: • Pavement Marking Legend - 1 sheet (NTS) • Illumination Legend - 1 sheet (NTS) • Combined Roadway Lighting, Permanent Signing, and Pavement Marking Plans - 10 sheets (1 40') • Permanent Signing Details - 2 sheets (NTS) • Illumination Details - 2 sheets (NTS) 8.2 Consultant Deliverables and Schedule Consultant shall provide: • Draft and Final Lighting Analysis Memorandum • Preliminary Permanent Signing and Pavement Marking plans included in the Preliminary Plans submittal for Task 10.1 • Advance Permanent Signing and Pavement Marking plans, specifications, and estimate included in Advance PS&E submittal for Task 11.1 • Final Permanent Signing and Pavement Marking plans, specifications, and estimate with included in Final PS&E submittal for Task 12.1 • One site visit (combined with site visit in Task 8.1) • Attendance in person at one comment review meeting • Attendance via phone at one comment review meeting Task 8.3 Pedestrian Crossing Treatment Recommendation Memorandum Consultant shall evaluate and make recommendations for pedestrian crossings at up to two (2) locations on Hersey Street within the Project limits. Locations will be coordinated with the City prior to evaluation. Consultant shall evaluate potential enhancements based on information gathered in the field, current City standards, and NCHRP Report 562. Traffic data collected in Task 8.1 will be used in the pedestrian crossing evaluation. No new traffic counts will be collected as part of this task. Consultant shall summarize findings and recommendations in a brief Pedestrian Crossing Treatment Recommendation Memorandum. It is assumed that enhancements will be limited to signing and striping only, and any recommendations from the evaluation will be included with the design in Task 8.2. Deliverable(s)/Schedule: Consultant shall provide: • Draft and Final Pedestrian Crossing Treatment Recommendation Memorandum i • One site visit (combined with site visit in Task 8.1) k i s i January 24, 2018 Page 19 ' COrNSV k% I ROGERS TASK 9 RIGHT OF WAY ("ROW") ACQUISITION Task 9.1 Preliminary Activities / ROE Utilizing the project base maps and cross sections, Consultant will assist in identifying needed right of way for the proposed design. Consultant will attend pre project meetings and pre project property owner meetings and will coordinate with project team on scope of meetings and associated ROW input. Consultant will prepare and present ROW direction to Project Team, as needed and participate in Project Team calls and Assigned Action Items, as needed. Consultant will obtain up to 10 Rights of Entry as needed. Task C9.2 Cost Estimate (CONTINGENCY TASK) Consultant will prepare a right of way cost estimate. Consultant will provide a spreadsheet of potential right-of-way acquisitions, listing phone numbers, site addresses and type(s) of acquisitions from each parcel: parcel maps, and right-of-way acquisition and preliminary cost estimates for each parcel. Task C9.3 Minimum Payment Offers (CONTINGENCY TASK) Consultant shall identify all property owners, and compile property owner information needed to acquire necessary property rights. This is including but not limited to property owner vesting, phone numbers, email addresses, and mailing addresses. Upon receipt of authorization to proceed with ROW Acquisition, Consultant shall attempt to arrange contacts with property owners and identify property and Project issues by providing the following services for each file: • Consultant shall prepare a minimum payment offer letter and associated proposed agreement documents. The minimum payment offer letter must follow the template provided by the City. The proposed agreement documents must include information detailing the terms of the temporary easement and a sketch Indicating the limits of the temporary easement. Consultant shall deliver the minimum payment offer letters and associated proposed agreement documents to all owners via certified mail with proof of delivery kept in the parcel file. • Consultant shall arrange negotiation contacts with property owners and identify property and Project issues for each file. • Consultant shall contact property owners to provide general information about the Project and answer any questions related to the minimum payment offer terms. • If property owners are willing to accept the minimum payment offer, Consultant shall ensure the signed agreement documents are sent to the City for final approval and payment. • IF a COUNTER OFFER is received, Consultant shall submit the proposed COUNTER OFFER , with a justification letter and owner supplied supporting documentation to City for approval. If accepted see proceeding bullet. • IF an acceptable agreement is not reached, Consultant shall document this decision in the file and notify City that the standard ROW acquisition process must be used. I~ January 24, 2018 Page 20 ! r CON.SULRNG ENGINEERS RW • Consultant shall prepare and maintain a Report of Personal Interview for each file. Task C9.4 Appraisal and Appraisal Review (CONTINGENCY TASK) Consultant shall use appraisers who are licensed or certified in the State of Oregon and competent in eminent domain appraising. Consultant shall provide one real estate appraisal for each property or properties which constitute the "larger parcel." Consultant shall provide not fewer than 15 days' written notice to owners of the planned appraisal inspections. The property owner and designated representative, if any, shall be invited to accompany the appraiser on any inspection of the property for appraisal purposes. Consultant shall send this notice via certified mail with proof of delivery and kept in the parcel file. Consultant shall perform independent reviews of appraisals. Consultant shall ensure that the some firm does not perform both the appraisals and the appraisal reviews. Consultant shall forward i both appraisal and review to City for final approval. City will establish just compensation for each property owner and will notify the Consultant. Task C9.5 Acquisition Services (CONTINGENCY TASK) Consultant shall identify all property owners, and compile property owner information needed to acquire necessary property rights. This is including but not limited to property owner vesting, phone numbers, email addresses, and mailing addresses. All right of way shall be acquired in the name of City. Consultant shall conduct negotiations, on behalf of the City, in good faith and in compliance with all federal and state laws and regulations. Consultant shall conduct negotiations for acquisition of real property based on Appraisal Review. Consultant shall be responsible for working with the title company to clear title encumbrances identified on the Preliminary Title Report or making the offer subject to clearing title encumbrances. Consultant shall present any requests for taking title subject to one or more outstanding interests to City for approval. Fee owners' and contract purchasers' ownership interests must be cleared. When impacted by the taking, lessees' interests must also be cleared. Consultants shall prepare and present to City the draft Offer Packets. All offers will be made on City letterhead, will include City contact information, and will be signed by City. These Offer Packets shall include, but are not limited to, acquisition and relocation brochures, offer-benefit letter, acquisition and relocation summary statements, conveyance documents and exhibits (to be approved by the City's legal department), copy of appraisal, map of acquisition, instruments of conveyance and W-9 form (if money is exchanged). E i i January 24, 2018 Page 21 ' i CCIAtW NNG ENGINEERS If possible, Consultant shall make offers in person, especially where the acquisition involves either a major impact to the property or the displacement of persons occupying the property. If this is deemed not possible, Consultant shall send via certified mail. Proof of delivery must be documented in the Report of Personal Interview and file. I Consultant shall make every reasonable effort to acquire the ROW expeditiously by negotiation. Consultant shall give property owners reasonable opportunity to consider the offer (statutorily 40 calendar days) and to present material the owner believes is relevant to determining the value of the property. Consultant shall attempt to negotiate an approved administrative settlement, but shall not advance the time of condemnation, or defer negotiations or condemnation or the deposit of funds with the court, or take any other coercive action in order to induce an agreement on the price to be paid for the property (49 CFR 24.102(h)). • IF the OFFER Is ACCEPTED, Consultant shall obtain escrow services from a local title company for permanent acquisitions and coordinate closing transactions between the title company and the City. Consultant shall forward all signed Temporary Construction Easements to the City for processing. • IF a COUNTER OFFER is received, Consultant shall submit the proposed COUNTER OFFER (exceeding the estimate of just compensation) with a justification letter and owner supplied supporting documentation to City for approval. If accepted see above. • IF an acceptable agreement is not reached, Consultant shall prepare and submit a Recommendation for Condemnation. Consultant shall continue documenting the Report of Personal Interview for each file. The Report of Personal Interview must include contact with property owners, owner's attorneys and occupants; efforts to achieve amicable settlements; owners' suggestions for changes in plans; responses to owners' counterproposals etc. j~ Task C9.6 Condemnation Process Assistance CONTINGENCY TASK After good faith effort has been made to acquire ROW at the City's determination of just compensation, if settlement with the property owner(s) is NOT reached, Consultant shall: • With City authorization, send Final Offer letter to the property owner in accordance with the ROW Manual. • Provide information and clarification to City and City in support of mediation and condemnation proceedings, and assist property owner with any relocation according to the Consultant Services Guide. Note: City will initiate Condemnation proceedings. Assumptions: • The Minimum Payment Offer will be used for temporary construction easements associated with the reconstruction of ADA ramps only. • The Minimum Payment Offer will be $500 and will not require valuation services. a January 24, 2018 Page 22 j i ENV RNG E • There is no Relocation on this project. If Relocation services are needed the scope and budget will be adjusted accordingly. • There are up to 10 potential Minimum Payment Offer files and 5 potential permanent easement files that have been identified. i • OBEC to provide title reports. • Escrow services and title insurance are necessary for Permanent acquisitions only. OBEC Minimum Payment Offer files will require a Trio or information from the Assessor's website only. • Temporary Construction Easements will not be recorded. • The City will make payment to property owners and record documents if needed. • OBEC will complete the legal descriptions. • Rates subject to annual escalation. Task 10 PREPARE PRELIMINARY DESIGN PACKAGE Task 10.1 Prepare Preliminary Plans Preliminary design of the project shall include location/layout of new curbs, sidewalks including ADA ramps, driveways as necessary, paving limits, and storm drain modifications. The design shall also indicate the location for additional signing and striping necessary to meet current standards for each intersection (see task 8.2 for more details). Consultant shall produce preliminary plan sheets displaying the design to approximately a 30% level of completeness. Up to 14 plan sheets and 25 ADA ramp detail sheets will be produced in 1 1" x 17" format with a 40 scale and submitted on paper and electronically (pdf) for review to the City. Construction details, staging plans, and erosion & sediment control plans will not be submitted with the preliminary design package. The design package will be reviewed by the City, and the City will provide written review comments, as necessary. Deliverable(s)/Schedule: • OBEC shall provide the City with two (2) paper copies and a PDF of the items above for review and comment. i Task 10.2 Prepare Preliminary Quantities/Cost Estimate OBEC shall calculate estimated construction quantities and generate a Preliminary Engineer's Cost Estimate to accompany the Preliminary plans for review and comment by the City Staff. I Task 10.3 Preliminary Independent Design Check/Review According to OBEC policy and procedures, OBEC shall conduct an independent QA/QC review of I all design deliverables and quantities prepared and submitted to the City. Documentation of this ) internal review will be kept in OBEC's project files and will be available to the City upon request. u ( January 24, 2018 Page 23 ' COAISULANG ENGINEERS 1 MO., W TASK 11 PREPARE ADVANCED PLANS, SPECS & COST ESTIMATE Task 11.1 Prepare Advanced Plans OBEC will prepare and submit Advance (90%) contract plans for review by City Staff. City feedback from the preliminary design will be incorporated into the Advance Plans. OBEC will incorporate City of Ashland standard details into the drawing set, as needed. For budgeting purposes, it is anticipated that the Advance and Final Plans will consist of the following list of 1 1" x 17" plan sheets: I Title Sheet 1 sheet Index Sheet 1 sheet Typical Sections 2 sheets Construction Details 2 sheets ADA Ramp Details 25 sheets Traffic Control Plans/Details 13 sheets Pipe Data Sheet 1 sheet General Construction & Utility Plan 10 sheets Drainage Design & Detail Plans 2 sheets Illumination, Permanent Signing & Pavement Marking Plans 13 sheets (Task 8.1) 16 sheets (Task 8.2) Erosion Control Plan/Details 9 sheets Total 82 sheets Deliverable(s)/Schedule: • OBEC shall provide the City with two (2) paper copies and a PDF of the above items for review and comment per the project schedule. OBEC shall provide responses to the City's preliminary comment log. Task 11.2 Prepare Advanced Quantities/Cost Estimate OBEC shall calculate detailed construction quantity estimates and generate a detailed Engineer's Cost Estimate to accompany the Advanced plans. Task 11.3 Prepare Advanced Specifications OBEC shall prepare bid book including draft specifications and special provisions for the purposes of bidding. Specifications shall conform to the 2018 Oregon Standard Specifications for Construction. Task 11.4 Advanced Independent Design Check/Review According to OBEC policy and procedures, OBEC shall conduct an independent QA/QC review of all design deliverables and quantities prepared and submitted to the City. Documentation of this internal review will be kept in OBEC's project files and will be available to the City upon request. January 24, 2018 Page 24 r C(M I TASK 12 PREPARE FINAL PLANS, SPECS & COST ESTIMATE Task 12.1 Prepare Final Plans OBEC will prepare and submit final contract plans for the purposes of bidding. City feedback from the Advanced plans up to one set of comments will be incorporated into the final plans. All plan sheets will be produced in 1 1" x 17" format and submitted on Mylar film. Task 12.2 Prepare Final Quantities/Cost Estimate OBEC shall calculate detailed construction quantity estimates and generate a detailed Engineer's Cost Estimate to accompany the final plans. Task 12.3 Prepare Final Specifications OBEC shall prepare bid book including final specifications and special provisions for the purposes of bidding. Specifications shall conform to the 2018 Oregon Standard Specifications for Construction and the City Standards. Task 12.4 Final Independent Design Check/Review According to OBEC policy and procedures, OBEC shall conduct an independent QA/QC review of all design deliverables and quantities prepared and submitted to the City. Documentation of this internal review will be kept in OBEC's project files and will be available to the City upon request. TASK 13 BIDDING ASSISTANCE Task 13.1 Pre-bid Meeting OBEC will conduct one on-site pre-bid meeting to allow contractors to ask questions and fully understand the project requirements. Task 13.2 Bidder Questions and Addendums OBEC shall assist the City during the bidding process by answering contractor questions and preparing addenda, as necessary. Task 13.3 Bid Evaluation OBEC shall assist the City in securing construction bids for a contractor to perform the relocation work. OBEC will contact contractors approved by the City to invite them to bid. The City will be responsible for advertisement and receipt of all bids. OBEC will produce a bid tabulation and assist the City with evaluation of bids. January 24, 2018 Page 25 ' CM5ULANG ENGINEERS Estimated Fee OBEC proposes to perform this scope of services on a time-and-materials basis for a cost not to exceed $490,000.44, and contingency tasks if released by the City, in the amount of $ 137,525.64 as shown in the attached spreadsheet of estimated labor costs and expenses. These costs are in accordance with and based upon OBEC's 2018 Standard Billing Rates, also attached. We hope that this proposal provides you with the information you require at this time. We look forward to working with you on this project. Sincerely, ~.^4 ~CU+1 Jaime Jordan, PE Project Manager j i I it l II ~I. P i OBEC Consulting Engineers City of Ashland Jonuery 25, 2013 ESTIMATED COST Horsey St. Retonalruclion - N. Mountain Ava. to N. Main -St. EXHIBIT A OBEC Job No. x6494029 TAIY M•e DM•lan Iry1w...S Dyln«rf 11YYrT 01vrJ.n tmnn..wwrM DI.IJaw rnl•e sanayar• gr.lllar Gnnrualwr x'ri«r M.•err! 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S S le t0 S+6u.00 li.l he2N M••r F2 Ti]ieKts.r o.+aa.„,,,,e .°a.nea ~ is s?~ so uovtac e e e la.s l«s (.24x22, x ~ , =a _-so u so uoum f0 so to 1n,1'im rolAl Mans i4r Ir 1471 SN ❑e W IM lS n lit IW i3t 4 SS riW AVtuot M0lYLreATos 3!OB.m l1lOm Seam 4!4100 fl:x.m fleem Saxm 31Rem f143m Loom SBam f141m tam deem IIS.x TALWOI lSTMAI[ 301,«2 3S,:r0 5110.022 t013xe IIS,?40 [Opxd fl M12 3?x3e SIo,Me ro t110ee 30,0>x 31?O1S 115,?4? 30.004 f5,v(0 ur,>1Om fSS.elf.m pA0p.o0 H>S,efi.m wsattAnrout uren3«. tl4]o.4t TOTAL OYC r11OS(CT tTTIIMT(. ser0.00r,N Total EtliTlleled Cotfs = 5~90,000.M D«IM CwMelrn rwr.aM« re mneq.. z ap. re«t<«..r 236 aK«• x2!2.1 r+.n~rL ,4 fOLS n,r renar. 2 - 12 M«r«w t« 30344/wrn luaWn 3Awm. bw MFa«lr 0rr:µ T_ -2 Mop, wO Dgpl ~bnM• x.l 15a0e 503.5/Ma L.3 l PrftcC IrMMI3-1114 PM xeDr 1 r2 OBEC bCaN eoc- ua uolsneei(Dn OBEC Consulting Engineers City of Ashland ESTIMATED COST Jon.ro 25, 2018 Hersey St. REN:Onst-bon - N. Mountain Ave. to N. Main St. EXHIBIT A OEEC Job No. P64"" 4n /'•I'<I TAfR /wlwl OMJm lryln•«S [,yln••r] unlny o..- [n.lr«rnxaa DNIJ•n /nl.afw•»r• Wnw TwN3 Svn•)TMt DwRIM CAO OSn«I zen- 4<•wmrJ -At DRS C31 nIC TASK Atrugrt I Nur•Swt crllrrawS M•Ir•Sxl S)M•Ilal At•n•pl Tw•r lrl S./wvNw IMe^•0«1 /wl•E NDURS S11pOR I cmN•Ilx YJ J[e eva f6 •PD EF dD YG SC9 KWC F.INrO C/W and iwt~ea„•ao•Y Pwdul•n_ ^Iim 1•• Tda St.StOy SaOe <••aiv<11m CDITNOMCY T- / •e d.IJm S 1ri1M dNJm Mawrrw.nrJ D~.ilm /.•I.a s- Srw•y TwNT Sw•y T-. A S,ypr•a Lr/Ir•r[3 Aiwewi S/•J 1 Ms,pw1, wm Wl .1 [AD Dwnr1 /nIM DRS _ Mang«S GMrrwxt WOE uPwvl<w rA•a exl h•Iw/«w/ NOUIf R C•rrtwtlw or<o.. nJ Fp SM~ e- ECI ACp At IWL Ala Us )1 q0 YG SCS r,WO R Q.T L n mnEaYnrl+mv!'(X1 AG+K at -r.n 5 e3 I + I aD 'D •A iD 14etl.00 23_T _W F.I. F.nlb_en.ow (CON^ -tnd f0 Opu•<eN 10 M b Tp fD SO f0 fO,1e0m_ TASK -1-- '?ICCVI.NG!nCT'.ISKI /•IUY'•E 'Um~ar 1 rb le A SD W SD 3]e11J:0 x.s.] 4«II•w.., 3.. 0 W ]0 so 30m ~n.e wsme o.a.arl,,, mrJl<orrncEVCY InsK• ] IT tl T BO __W so so se_,es CJ.I. Jeea Pxwr AppNab. ICON-En'CY'A4 T e le 32 >a OA5f 0/f9/, w.w40 Docwrof•n I<DN'S+GEYCr 1ASC ] . T 100 f0 •A :D tl deJJ)0 e ]2 2 Y fD W iD •ss :Alm O,e'OCiw h•r1 Tm ICDN'wG(vCv lAir.' 1 T ]0 2 I. O.1 D':T oW fmp•rrr+•..al Canra_Hr •••m:r CON`NOE.VCY TASK 10 tl 6 3 W 17 Sm I 11 TAfIE4 ~G•wMnl<tl G• </)w.ww Dr f•nlm CAe'IDR IaEwvrw W f0 30 Wm TASK AM•NN.T Av •u1r31•.CnT VGErv t 0 SO 3]I~OAo SO SS.tTOm o so so zc som es.titwr FsiN.ale rCCfJ11NGENCY tn3Kn halnrYlY,un Peym.m qlm lCOnTVGENCY TASK SO W S]esSm 1]+S5m 0 SO SO f^Oa~1„C S'+O,Oe3O0 p,11 Nra eneA~•dr~!e«:x.leo"•wen+r lwse' o w w sl_oso.:c s+osom NJ'4 Ear S«.kw haw CON'SJCE4FCCWN 0 SD to S=OOaO~_ S^]DFODO h.e <o•tlwmbr Aen!rvrr. ICOMS:GF.XT lAD(' 0 SD SO S:.dJOY T.em.OC roru llou3s to a Is as e e s11 NA NA AmAOT NOUSITRAro steam sT:om iovm su]m s:T>m steam som sleem fl+]m sum seam sl+].DO loom sl ea.co sllsm roru lAaoe s3reur[ sl,eeo so sl,sel fD so sone srspn sT.1]o slT,tss slyl sly. so so,om sD st,lso so.m ST.lte.m sn,no.m it lo,trot.oo IW{paAN10Vt COMIMOINCT SSI•INSIt. SL,SM.N -Al Oe1C CO- ISTtNAT1. IS),SS- Tetal Estimohd Comingency Costs = $137,S25.64 c.rrNrvu.,r ,IyASr swy (CCj- E- •IMEtI•.Trr's tASRI.AO•.•Ja ®]a.t..• '1st Q.LT S3)±< Ills Taub 3]33+ N.00 Te1el Es3ilnsEe[I Casts Intl diEj Cefltin9eesies = $627,525.00 tasl Pr3Re¢tlJerMtB-t:ta PEA hp32W2 Oetce WC DOC - tlDe.be3 Council Business Meeting February 6, 2018 Title: Approval of Contract for Professional Recruitment Services with Springsted Waters From: Tina Gray Human Resource Director Tina.gray@ashland.or.us Summary: This item is for approval of a contract for services with Springsted Waters for recruitment of a city administrator. The total cost for an all-inclusive recruitment is $24,500. While this contract amount does not require formal Council approval, at the December 5, 2017, meeting Council requested the opportunity to review and approve the contract award. Actions, Options, or Potential Motions: I move that Council, acting as the Local Contract Review Board, approve a contract for $24,500 with Springsted Waters for professional recruitment of a city administrator. Staff Recommendation: Staff recommends approval of the contract. Resource Requirements: Funds for this recruitment are allocated in the BN2017-19 budget. Policies, Plans and Goals Supported: N/A Backl4round and Additional Information: At the December 5, 2017, business meeting, Council directed staff to begin a recruitment process for the City Administrator. Staff received proposals from five qualified firms wanting to assist the City with our executive search. After a review of the proposals, staff selected Springsted Waters for their commitment to pursue a diverse pool of candidates. Springsted Waters will utilize their established networks to make direct and personal contact with prospective minority and female candidates in order to encourage them to consider this opportunity in Ashland. Additionally, Springsted Waters will provide an on-line survey designed to solicit public input on the key community issues the new City Administrator will face once on the job. The survey outcomes will assist in development of the recruitment brochure, as well as provide Council with additional community input for consideration in the Strategic Planning process. Attachments: Contract with Springsted Waters Page 1 of 1 CITY OF -AS H LA N D PROFESSIONAL SERVICES AGREEMENT CONSULTANT: Springsted / Waters (hereinafter "Consultant") CITY OF CONSULTANT'S CONTACT: Art Davis, Senior Vice -AS H LA N D President 20 East Main Street Ashland, Oregon 97520 ADDRESS: 9229 Ward Parkway, Suite 104 Telephone: 541/488-6002 Kansas City, MS 641 14 Fax: 541/488-5311 TELEPHONE: (816) 868-7042 EMAIL: adavisAspringsted.com This Professional Services Agreement (hereinafter "Agreement") is made by and between the City of Ashland, an Oregon municipal corporation (hereinafter "City") and Springsted Incorporated, a domestic business corporation, dba Springsted/Waters Executive Recruitment ("hereinafter "Consultant") for Professional Recruitment Services for a City Administrator. NOW THEREFORE, in consideration of the mutual covenants contained herein the City and Consultant hereby agree as follows: 1. Scope of Work: Consultant will provide professional services for an executive recruitment for the position of City Administrator. This Agreement includes the Consultant's commitment to provide all phases of the executive recruitment process as more fully described below and in the Consultant's Proposal dated December 22, 2017, which is attached hereto as Exhibit C and incorporated herein. Consultant's services during all phases of the recruitment process are collectively referred to herein as the "Work." Phase Description of Professional Services, the "Work" Phase I Task I - Candidate Profile Development/Advertising/Marketing (includes one day on site by Project Team Leader). Task 2 - Identify Quality Candidates. Phase II Task 3 - Screening of Applications and Submission of Recommended Semi-Finalists to Client. (includes one day onsite by Project Team Leader) Task 4 - Reference Checks, Background Checks, and Academic Verifications. Phase III Task 5 - Final Process/On-Site Interviews with Finalists (includes up to two days on site by Project Team Leader). Conclusion Acceptance of offer of employment by candidate. 2. Effective Date and Duration: This Agreement shall become effective on the date of execution on behalf of the City, as set forth below (the "Effective Date"), and unless sooner terminated as specifically provided herein, shall terminate upon the City's affirmative acceptance of Consultant's Work as complete and Consultant's acceptance of the City's final payment therefore. Consultant's obligations shall be fully performed on or before September 30, 2018. Page 1 of 8: Professional Services Agreement with Springsted Incorporated 3. All Costs Borne By Consultant: Consultant shall, at its own risk and expense, perform the Work described above and, unless otherwise specified in this Agreement, furnish all labor, equipment and materials required for the proper performance of such Work. 4. Qualified Work: Consultant has represented, and by entering into this Agreement now represents, that all personnel assigned to the Work to be performed under this Agreement are fully qualified to perform the service to which they will be assigned in a skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are so registered, licensed and bonded. 5. Compensation: City shall pay Consultant the sum of $26,500.00 (twenty-six thousand and five hundred dollars) as full compensation for Consultant's performance of all Work under this Agreement. City shall pay Consultant $24,500.00 (twenty-four thousand and five hundred dollars) as an all-inclusive fee for all phases of the professional recruitment services. In addition, the City shall pay Consultant $2,000.00 (two thousand dollars) to conduct a web-based survey to determine key community-wide issues & priorities to be considered in the selection of a new City Administrator. Payments shall be made within 30 days of the date of receipt by the City of Consultant's invoice. Consultant shall bill the City in four installments as set forth in Exhibit A, Consultant's Proposal. Should this Agreement be terminated prior to completion of all Work, payments will be made for any phase of the Work completed and accepted as of the date of termination. 6. Ownership of Work/Documents: All Work product or documents produced in furtherance of this Agreement belong to the City, and any copyright, patent, trademark proprietary or any other protected intellectual property right shall vest in and is hereby assigned to the City. 7. Statutory Requirements: The following laws of the State of Oregon are hereby incorporated by reference into this Agreement: ORS 27913.220, 27913.230 and 27913.235. 8. Living Wage Requirements: If the amount of this Agreement is $20,688.86 or more, Consultant is required to comply with Chapter 3.12 of the Ashland Municipal Code by paying a living wage, as defined in that chapter, to all employees performing Work under this Agreement and to any Subcontract who performs 50% or more of the Work under this Agreement. Consultant is also required to post the notice attached hereto as Exhibit B predominantly in areas where it will be seen by all employees. 9. Indemnification: Consultant hereby agrees to defend, indemnify and save City, its officers, employees and agents harmless from any and all losses, claims, actions, costs, expenses, judgments, subrogations, or other damages resulting from injury to any person (including injury resulting in death), or damage (including loss or destruction) to property, of whatsoever nature arising out of or incident to the performance of this Agreement by Consultant (including but not limited to, Consultant's employees, agents, and others designated by Consultant to perform Work or services attendant to this Agreement). However, Consultant shall not be held responsible for any losses, expenses, claims, subrogations, actions, costs, judgments, or other damages, caused solely by the negligence of City. 10. Termination: a. Mutual Consent. This Agreement may be terminated at any time by the mutual consent of both parties. b. City's Convenience. This Agreement may be terminated by City at any time upon not less than 30 (thirty) days' prior notice in writing and delivered by certified mail or in person. C. For Cause. City may terminate or modify this Agreement, in whole or in part, effective upon delivery of written notice to Consultant, or at such later date as may be established by City under any of the following conditions: i. If City funding from federal, state, county or other sources is not obtained and continued Page 2 of 8: Professional Services Agreement with Springsted Incorporated at levels sufficient to allow for the purchase of the indicated quantity of services; ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way that the services are no longer allowable or appropriate for purchase under this Agreement or are no longer eligible for the funding proposed for payments authorized by this Agreement; or iii. If any license or certificate required by law or regulation to be held by Consultant to provide the services required by this Agreement is for any reason denied, revoked, suspended, or not renewed. d. For Default or Breach. i. Either City or Consultant may terminate this Agreement in the event of a breach of the Agreement by the other. Prior to such termination the party seeking termination shall give to the other party written notice of the breach and its intent to terminate. If the party committing the breach has not entirely cured the breach within 15 (fifteen) days of the date of the notice, or within such other period as the party giving the notice may authorize in writing, then the Agreement may be terminated at any time thereafter by a written notice of termination by the party giving notice. ii. Time is of the essence for Consultant's performance of each and every obligation and duty under this Agreement. City by written notice to Consultant of default or breach may at any time terminate the whole or any part of this Agreement if Consultant fails to provide services called for by this Agreement within the time specified herein or within any extension thereof. iii. The rights and remedies of City provided in this subsection (d) are not exclusive and are in addition to any other rights and remedies provided by law or under this Agreement. e. Obligation/Liability of Parties. Termination or modification of this Agreement pursuant to subsections a, b, or c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination or modification. However, upon receiving a notice of termination (regardless whether such notice is given pursuant to Subsection a, b, c, or d of this section, Consultant shall immediately cease all activities under this Agreement, unless expressly directed otherwise by City in the notice of termination. Further, upon termination, Consultant shall deliver to City all Agreement documents, information, works-in-progress and other property that are or would be deliverables had the Agreement been completed. City shall pay Consultant for work performed prior to the termination date if such work was performed in accordance with the Agreement. 11. Independent Contractor Status: Consultant is an independent contractor and not an employee of the City for any purpose. Consultant shall have the complete responsibility for the performance of this Agreement. Consultant shall provide workers' compensation coverage as required in ORS Chapter 656 for all persons employed to perform Work pursuant to this Agreement. Consultant is a subject employer that will comply with ORS 656.017. 12. Assignment: Consultant shall not assign this Agreement or subcontract any portion of the Work without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be void. Consultant shall be fully responsible for the acts or omissions of any assigns or subcontractors and of all persons employed by them, and the approval by City of any assignment or subcontract of the Work shall not create any Contractual relation between the assignee or subcontractor and City. Page 3 of 8: Professional Services Agreement with Springsted Incorporated 13. Default. The Consultant shall be in default of this Agreement if Consultant: commits any material breach or default of any covenant, warranty, certification, or obligation under the Agreement; institutes an action for relief in bankruptcy or has instituted against it an action for insolvency; makes a general assignment for the benefit of creditors; or ceases doing business on a regular basis of the type identified in its obligations under the Agreement; or attempts to assign rights in, or delegate duties under, this Agreement. 14. Insurance. Consultant shall, at its own expense, maintain the following insurance: a. Worker's Compensation insurance in compliance with ORS 656.017, which requires subject employers to provide Oregon workers' compensation, coverage for all their subject workers b. Professional Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 (two million dollars) per occurrence. This is to cover any damages caused by error, omission or negligent acts related to the professional services to be provided under this Agreement. C. General Liability insurance with a combined single limit, or the equivalent, of not less than $2,000,000 per occurrence for Bodily Injury, Death, and Property Damage. d. Automobile Liability insurance with a combined single limit, or the equivalent, of not less than 1,000,000 (one million dollars) for each accident for Bodily Injury and Property Damage, including coverage for owned, hired or non-owned vehicles, as applicable. e. Notice of cancellation or change. There shall be no cancellation, material change, reduction of limits or intent not to renew the insurance coverage(s) without 30 days' prior written notice from the Consultant or its insurer(s) to the City. f. Additional Insured/Certificates of Insurance. Consultant shall name the City of Ashland, Oregon, and its elected officials, officers and employees as Additional Insureds on any insurance policies, excluding Professional Liability and Workers' Compensation, required herein, but only with respect to Consultant's services to be provided under this Agreement. The consultant's insurance is primary and non-contributory. As evidence of the insurance coverages required by this Agreement, the Consultant shall furnish acceptable insurance certificates prior to commencing the Work under this Agreement. The certificate will specify all of the parties who are Additional Insureds. Insuring companies or entities are subject to the City's acceptance. If requested, complete copies of insurance policies; trust agreements, etc. shall be provided to the City. The Consultant shall be financially responsible for all pertinent deductibles, self-insured retentions, and/or self-insurance. 15. Nondiscrimination: Consultant agrees that no person shall, on the grounds of race, color, religion, creed, sex, marital status, familial status or domestic partnership, national origin, age, mental or physical disability, sexual orientation, gender identity or source of income, suffer discrimination in the performance of any Work under this Agreement when employed by Consultant. Consultant agrees to comply with all applicable requirements of federal and state civil rights and rehabilitation statutes, rules and regulations. Further, Consultant agrees not to discriminate against a disadvantaged business enterprise, minority-owned business, woman-owned business, a business that a service-disabled veteran owns or an emerging small business enterprise certified under ORS 200.055, in awarding subcontracts as required by ORS 279A.I 10. 16. Consultant's Compliance With Tax Laws: 16.1 Consultant represents and warrants to the City that: 16.1.1 Consultant shall, throughout the term of this Agreement, including any extensions hereof, comply with: Page 4 of 8: Professional Services Agreement with Springsted Incorporated (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 16.1.2 Consultant, for a period of no fewer than six (6) calendar years preceding the Effective Date of this Agreement, has faithfully complied with: (i) All tax laws of the State of Oregon, including but not limited to ORS 305.620 and ORS Chapters 316, 317, and 318; (ii) Any tax provisions imposed by a political subdivision of the State of Oregon applicable to Consultant; and ' (iii) Any rules, regulations, charter provisions, or ordinances that implement or enforce any of the foregoing tax laws or provisions. 16.2 Consultant's failure to comply with the tax laws of the State of Oregon and all applicable tax laws of any political subdivision of the State of Oregon shall constitute a material breach of this Agreement. 17. Governing Law; Jurisdiction; Venue: This Agreement shall be governed and construed in accordance with the laws of the State of Oregon without resort to any jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or proceeding (collectively, "the claim") between the City and the Consultant that arises from or relates to this Agreement shall be brought and conducted solely and exclusively within the Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal forum, then it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon filed in Jackson County, Oregon. Consultant, by its signature hereon of its authorized representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United States Constitution, or otherwise, from any claim or from the jurisdiction. 18. THIS AGREEMENT AND THE ATTACHED EXHIBITS CONSTITUTE THE ENTIRE UNDERSTANDING AND AGREEMENT BETWEEN THE PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS AGREEMENT SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT, MODIFICATION OR CHANGE, IF MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS AGREEMENT. CONSULTANT, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE, HEREBY ACKNOWLEDGES THAT HE/SHE HAS READ THIS AGREEMENT, UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. 19. Nonappropriations Clause. Funds Available and Authorized: City has sufficient funds currently available and authorized for expenditure to finance the costs of this Agreement within the City's fiscal year budget. Consultant understands and agrees that City's payment of amounts under this Agreement Page 5 of 8: Professional Services Agreement with Springsted Incorporated attributable to Work performed after the last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sufficient to allow City in the exercise of its reasonable administrative discretion, to continue to make payments under this Agreement. In the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this Agreement without penalty or liability to City, effective upon the delivery of written notice to Consultant, with no further liability to Consultant. 20. Certification. Consultant shall sign the certification attached hereto as Exhibit A and herein incorporated by this reference. PRINGSTEDIWATERS (CONSULTANT): CITY OF ASHLAND: By: By: Signature Department Head Printed Name Printed Name Title Date Date (3'x9 is to be submitted with this signed Agreement.) Purchase Order No. Page 6 of 8: Professional Services Agreement with Springsted Incorporated EXHIBIT A CERTIFICATIONS/REPRESENTATIONS: Consultant, by and through its authorized representative, under penalty of perjury, certifies that (a) the number shown on the attached W-9 form is its correct taxpayer ID (or is waiting for the number to be issued to it and (b) Consultant is not subject to backup withholding because: (i) it is exempt from backup withholding, or (ii) it has not been notified by the Internal Revenue Service (IRS) that it is subject to backup withholding as a result of a failure to report all interest or dividends, or (iii) the IRS has notified it that it is no longer subject to backup withholding. Consultant further represents and warrants to City that: (a) it has the power and authority to enter into and perform the Work, (b) the Agreement, when executed and delivered, shall be a valid and binding obligation of Consultant enforceable in accordance with its terms, (c) the work under the Agreement shall be performed in accordance with the highest professional standards, and (d) Consultant is qualified, professionally competent, and duly licensed (if applicable) to perform the Work. Consultant also certifies under penalty of perjury that its business is not in violation of any Oregon tax laws, it is an independent contractor as defined in the Agreement, it is authorized to do business in the State of Oregon, and Consultant has checked four or more of the following criteria that apply to its business. (1) Consultant carries out the work or services at a location separate from a private residence or is in a specific portion of a private residence, set aside as the location of the business. (2) Commercial advertising or business cards or a trade association membership are purchased for the business. (3) Telephone listing is used for the business separate from the personal residence listing. (4) Labor or services are performed only pursuant to written contracts. (5) Labor or services are performed for two or more different persons within a period of one year. (6) Consultant assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of performance bonds, warranties, errors and omission (professional liability) insurance or liability insurance relating to the Work or services to be provided. Consultant Date Page 7 of 8: Professional Services Agreement with Springsted Incorporated CITY OF ASHLAND, OREGON City of Ashland LIVING WAG per hour effective June 30, 2017 (Increases annually every June 30 by the Consumer Price Index) portion of business of their 401 K and IRS eligible employer, if the employer has cafeteria plans (including ten or more employees, and childcare) benefits to the has received financial amount of wages received by assistance for the project or the employee. For all hours worked under a business from the City of service contract between their Ashland in excess of ➢ Note: "Employee" does not employer and the City of $20,688.86. include temporary or part-time Ashland if the contract employees hired for less than exceeds $20,688.86 or more. ➢ If their employer is the City of 1040 hours in any twelve- Ashland including the Parks month period. For more ➢ For all hours worked in a and Recreation Department. details on applicability of this month if the employee spends policy, please see Ashland employee's or more of the ➢ In calculating the living wage, Municipal Code Section employee's time in that month employers may add the value 3.12.020. working on a project or of health care, retirement, additional For Call the Ashland City Administrator's office at 541-488-6002 or write to the City Administrator, City Hall, 20 East Main Street, Ashland, OR 97520 or visit the city's website at www.ashland.or.us. Notice to Employers: This notice must be posted predominantly in areas where it can be seen by all employees. CITY OF ASHLAND Page 8 of 8: Professional Services Agreement with Springsted Incorporated i Proposal City of Ashland, Oregon Professional Recruitment Services for a City Administrator December 22, 2017 Springsted I Waters Art Davis, Senior Vice President Remittance Address 9229 Ward Parkway, Suite 104 adavis(cDspringsted.com 380 Jackson Street, Suite 300 Kansas City, Missouri 64114 (816) 868-7042 Saint Paul, Minnesota 55101-2887 LETTER OF TRANSMITTAL December 22, 2017 Ms. Tina Grey, Human Resources Director City of Ashland 20 East Main Street Ashland, OR 97520 Re: Request for Proposal to Provide Professional Recruitment Services Dear Ms. Grey, I appreciate the opportunity to submit our proposal for executive recruitment services for the City of Ashland's next City Administrator. Our extensive experience in providing executive recruitment services to cities, counties and other public sector organizations nationwide will be beneficial for this recruitment and allow us to find the ideal candidate for the City of Ashland. We know that you have options for using other recruitment firms. However, we believe that our approach sets us apart from our competitors in the following unique ways: • Commitment to a Successful Recruitment is Guaranteed - Springsted Waters (SIW) will be aggressive and responsive to you - the client - and with prospective applicants using an approach of "doing whatever it takes to get the job done right!" Please notice our "Triple Guarantee" referenced in this Proposal; • Focused Strategy for Success - S1 W recommends advertising and recruiting nationally, but would also focus on making contact with city management professionals currently working in Oregon and in some of the surrounding states, believing that a regional focus can sometimes bring in candidates more knowledgeable about the nuances of working in your state and in the Northwest region of the U.S. An example of a professional recruitment brochure that will be created for Ashland's city administrator search process can be viewed by clicking on the following link: BROCHURE; • Talented and Experienced Recruitment Consultants - SJ W's project recruitment team is outstanding! This firm has had success working with the City of Ashland in the past, and has provided executive recruitment and human resources related services to local governments for over 30 years. Our current team has had tremendous success working on recent recruitments throughout the country and we encourage you to contact our references. The professional experience for our consultants includes three former city managers/administrators, a former police chief and a former school superintendent of schools. The result - a cohesive and highly experienced consultant team that possesses a thorough and detailed understanding of the leadership, experience, training and certifications required for this position, which ultimately benefits the client with a more targeted and qualified pool of candidates; • Video Interviews to Screen Semi-finalists- SJW uses a proprietary on-line video interview process to assist the City in narrowing down semi-finalists to a smaller group for on-site interviews. This unique on-line video system is part of the all-inclusive fee to better assist in screening candidates, and can possibly reduce costs by eliminating unnecessary travel expenses for on-site interviews: • Leadership Assessment of Finalists - SIW will conduct a candidate strengths assessment and management / leadership style testing, which some refer to as "personality and behavioral stvle testing." This assessment is completed on-line by the finalists prior to on-site interviews and determines if a candidate's management style matches the Profile created by the City in an effort to find the `-ideal" candidate and determine whether each candidate is a good fit for the organization and community: SpringstedlWatel - . I i } ,I r, . City of Ashland, OR. Proposal to Provide Professional Recruitment Services. • Comprehensive Vetting of Finalists (Includes Social Media Search) - SJW's multiple layered vetting process of screening candidates will provide a qualified pool of individuals to consider for each position with not only the skills and experience desired, but most importantly, a leadership and management style that best fits the organization and community. The screening includes detailed candidate questionnaires, video interviews, leadership and strengths assessment, candidate background checks including criminal, civil, driving record, academic and employment verification, a Nexus search that includes a comprehensive report on each candidate's media and on-line presence, and a comprehensive reference report on all finalists prior to interviews occurring. (Note. SSW must conduct these background checks for the °7riple Guarantee" to remain in effect); • Commitment to Pursue a Diverse Pool of Candidates - SJW will take responsibility for ensuring diversity in our candidate pools. In these recruitments, we will use our established networks to make direct and personal contact with prospective minority and female candidates and encourage them to consider an opportunity with Ashland. Springsted Waters is a WBE; and, • Efficient Online Application and Communication Process - We utilize a proprietary online application system exclusively licensed to SIW to facilitate talent management. The system has been designed by SIW to customize applicant flow and tracking. Outstanding candidates from around the country routinely search our site for available and newly posted city management positions. The site also allows our firm to communicate easily with applicants, and provides us the ability to conduct database inquiries for qualified candidates based on characteristics important to the city of Ashland. Finding candidates with the desired levels of experience and specific knowledge of local government management trends can sometimes be challenging. A significant part of our job is to ensure that your next city administrator is a "great fit" for the City of Ashland organization and community. My background as a former city manager and nearly 13 years of experience in recruiting municipal executives and leaders will provide valuable insight for the City Council throughout this recruitment process. The proposal document will provide you the details about our approach, expertise, client references and pricing for this executive recruitment. If you have any questions, please contact me at (816) 868-7042 or by email at adavis a springsted.com. Our Team would consider it a professional privilege to provide these services to the City of Ashland. Respectfully submitted, Art Davis, Senior Vice President and Consultant City of Ashland, OR Proposal to Provide Professional Recruitment Services General Information The Executive Recruitment Division of Waters Consulting merged with Springsted Incorporated in May 2014, establishing one of the largest public sector executive recruitment and human capital consulting-firms in the United States. Our firm name, Waters & Company, has recently been changed to Springsted I Waters (SI W) to more clearly reflect the connection to and support from the Springsted group of companies. Springsted Incorporated, our parent company, has been a Women Business Enterprise since 1993. Three employee-owners lead the Springsted group of firms and their 70-member staff. Our corporate office is located in Saint Paul, Minnesota, with regional offices located in Dallas, Texas; Chicago, Illinois; Milwaukee, Wisconsin; Des Moines, Iowa; Kansas City, Missouri; Richmond, Virginia; Atlanta, Georgia; and Denver, Colorado. The SJW Recruitment Project Team will partner with the Human Resources Department, City Council and designated staff as your technical advisor to ensure that the recruitment process for your next City Administrator is conducted in a thorough and professional manner. Our objective is to generate high-quality candidates and assist you with the screening and evaluation of these candidates. Approach and Timeline Approach The search will be conducted out of our Kansas City, Missouri office. Art Davis will serve as the Recruitment Project Team Leader. Our proven process includes five major tasks: 1. Recruitment brochure development and advertising Springsted I Water ? r City of Ashland, OR. Proposal to Provide Professional Recruitment Services 2i • Meetings with the City's leadership and key stakeholders to understand the City's needs as well as its strategic directions and expectations 2. Execution of recruitment strategy and identification of quality candidate • Aggressive recruitment and direct contact with prospective candidates • Interactive searchable applicant database • Utilization of an applicant tracking system 3. Screening of applications, recommendation of semi-finalists and selection of finalists • Candidate questionnaires provide in-depth information • Due diligence questions and review of candidate's web and internet presence • Management/leadership style and strengths assessment (personality and behavior analysis) to determine if there is a fit with the approved management/leadership profile established by the Human Resources Department and City Council in order to identify the ideal candidate • Video interview responses provided by each semi-finalist candidate • Semi-finalists booklet of the top candidates • Selection of 3 - 5 finalists by the City 4. Conducting background checks (criminal, civil, credit, and driving record), reference checks and academic verifications • Background records. checks and academic verification • References 5. Final interview process • Interview design, coordination, attendance and support • Employment offer - assistance and feedback Timeline Below is an estimated Timeline for the executive recruitment process. You will be asked during the first on-site meeting to review and approve a Timeline for the recruitment project. It is our intent to conduct the recruitment expeditiously, but not at the expense of finding high-quality candidates for you. CITY OF ASHLAND, OR PRELIMINARY TIMELINE The following Timeline represents a preliminary schedule for your executive recruitment based on a commencement date of Wed., Jan. 10, 2018. (Commencement of the project is contingent upon contract approval prior to the first consultant on-site visit.) Actual target dates will be developed in consultation with and approved b the City. Project Milestone Deliverables Target Date • S1W completes on-site meetings to develop candidate profile/brochure, City approves ad/timeline. Profile development, advertising . S1W sends draft recruitment brochure to the City. Jan. 10 - Mar. 5 and candidate outreach. • City returns draft brochure (with edits) to SSW. • S1W commences recruitment ads & marketing. Online data collection and profile development. • S1W commences review of applications; sends qualified applicants Candidate Questionnaire for more info. SSW completes formal review of applications and sends selected Applicant screening and resumes & questionnaire responses to City for review. assessment and recommendation Candidates' recorded interviews are presented. Mar. 5 -14 Semi-finalists complete candidate management style of semi-finalists. assessment and responses are reviewed and interview questions are developed. S1 W meets w/City on March 14 & recommends semi-finalists; City selects finalists for on-site interviews. Comprehensive background check • S1W completes reference checks/background checks/ academic and reference checks completed verification on finalists. Mar. 15 - 30 (Minimum of 10 working days to complete backgrounds) for finalists. S 1W sends documentation for finalists to the City. On-site Interviews with finalists. • The City conducts on-site interviews with finalists. Week of April 2 Employment offer made / accepted. • The City extends employment offer to selected candidate. Week of April 9 Springsted I Water R 1 City of Ashland, OR. Proposal to Provide Professional Recruitment Services. 3 Proposed Costs and Guarantee Proposed Costs The all-inclusive professional fee to conduct the recruitment is provided below and includes the cost of professional services by the Recruitment Project Team Leader, the project support staff and all project-related expenses such as advertising, preparation of the recruitment brochure, printing, candidate background, reference and academic verification checks and travel expenses for on-site visits. Travel expenses incurred by candidates for on-site interviews with the client are not the responsibility of SJW and are handled directly by the client organization. The all-inclusive professional fee will be billed in four installments: 30% of the fee will be billed at the beginning of the recruitment; 30% at the implementation of Phase 1; 30% at the implementation of Phase 11; and 10% upon acceptance of an offer by the candidate. We are open to negotiate an alternative payment schedule if selected for this recruitment. All questions regarding the professional fees and project-related expenses should be directed to Art Davis, Senior Vice President at adavis cr springsted.com or via phone at (816) 868-7042. PHASE DESCRIPTION OF PROFESSIONAL SERVICES FEES Task 1 - Candidate Profile Development/Advertising/Marketing Phase I (includes one day on site by Recruitment Project Team Leader) Task 2 - Identify Quality Candidates Task 3 - Screening of Applications and Submission of Recommended Semi-Finalists to Client (includes one day on site by the Recruitment Phase II Project Team Leader) Task 4 - Reference Checks, Background Checks and Academic Verifications Phase III Task 5 - Final Process/On-Site Interviews with Finalists includes two days on site b Recruitment Project Team Leader Conclusion Acceptance of offer b candidate TOTAL ALL-INCLUSIVE PROFESSIONAL FEE $24,500 OPTIONAL SERVICES FOR CONSIDERATION FEES At the City's option, SSW will conduct a web-based survey to determine key community-wide issues & priorities that could be considered in the selection of anew Administrator. This survey is completed by $2,000 community leaders, citizens, and employees and would alter the project timeline. On rare occasions, SSW is asked to provide additional search services that are not included in this scope of service or to provide more than three on-site visits to the City. Additional work specifically requested by the City $220 per hour which is outside of the scope of this project will be invoiced at the hourly rate of $220 plus expenses. SJW will plus expenses submit a written explanation of the additional services to be provided and the estimated hours that will be required prior to commencing an additional services. Triple Guarantee Our Triple Guarantee is defined as: (1) A commitment to remain with the recruitment assignment until you have made an appointment for the fees and tasks quoted in this proposal. If you are unable to make a selection from the initial group of finalists, SSW will work to identify a supplemental group until you find a candidate to hire. (2) Your executive recruitment is guaranteed for 24 months against termination or resignation for any reason. The replacement recruitment will be repeated with no additional professional fee, but only for project-related expenses. Candidates appointed from within your organization do not qualify for this guarantee. This guarantee is subject to further limitations and restrictions of your state laws. (3) SJW will not directly solicit any candidates selected under this contract for any other position while the candidate is employed with your organization. Springsted ( Water, ,f r , . i t ,T, f- City of Ashland, OR. Proposal to Provide Professional Recruitment Services. 4 IV. References The following references are a sampling of executive recruitments completed during the last 24 months by Recruitment Project Team Leader Art Davis & Executive Vice President Chuck Rohre. City of El Dorado, KS (Pop. 13,000) City of Norwalk, IA (Pop. 10,000) Recruitment Project: City Manager (Jan. 2017) Recruitment Project: City Manager (June 2016) Mr. Vince Haines, Mayor Mr. Tom Phillips, Mayor 316-323-2535 515-771-8078 vhaines(@eldoks.com mayor(@norwalk.iowa.gov City of Medford, OR (Pop. 77,677) City of Oldsmar, FL (Pop. 14,000) Recruitment Project: City Manager (March 2016) Recruitment Project: City Manager (July 2017) Ms. Lynette M. O'Neal, Executive Office Manager Mr. Dean O'Nale, Fire/EMS Chief (Project Leader for City) 541-774-2089 813-749-1200 lynette.oneal(a cityofinedford.org donale anmyoldsmar.com Manatee County, FL (Pop. 342,106) Grand Rapids, MI (Pop. 210,000) Recruitment Projects: County Administrator (Sept. 2017), & Recruitment Project: Fire Chief (June 2016) Dir. of Redevelopment & Economic Opportunity (Sept. 2016) Ms. Mari Beth Jelks, Dir. of Admin. Services & HR Director Mr. Rodney D. Barnes, HR Director 616-456-3166 941-748-4501 ext. 3813 mielks@,grand-rapids.mi.us Rodney. Barnes@mymanatee.org V. Recruitment Project Team Recruitment Project Team Leader Mr. Art Davis, Senior Vice President Direct Phone: (816) 868-7042; Email: adavis(cvspringsted.com Arthur (Art) Davis, Senior Vice President and Consultant with Springsted I Waters Executive Recruitment, has been with the firm for nearly 3 years. Art also successfully launched and expanded his own local government consulting company providing executive recruitment services for 10 years. As Associate Director for the Civic Council of Greater Kansas City, a 501 c4 nonprofit comprised of CEOs representing the largest companies in the region, Davis successfully assisted civic leaders in developing and implementing a multi-year initiative to revitalize Downtown Kansas City, MO. For over six years, Art also served as city manager of Lee's Summit, MO, a city recognized at the time as the "fastest growing" city in MO and the Greater Kansas City region. Earlier positions of responsibility included working as an assistant administrator for Lenexa, KS, and serving as Assistant to the Mayor of Dallas, TX. Mr. Chuck Rohre, Executive Vice President Direct Phone: (214) 466-2436; Email: crohre a~springsted.com Chuck Rohre is Executive Vice President for Springsted I Waters Executive Recruitment, and is responsible for overseeing and managing the firm's executive recruitment engagements to insure their integrity, timeliness and adherence to budget parameters. Chuck has been a consultant in executive search since the early 1990s, and has been with the firm since 2006. He also served as a Police Chief and Director of Public Safety for several North Texas municipalities with populations ranging from 9,000 to 200,000 plus. Ms. Jenelle McDonald, Project Coordinator Direct Phone: (214) 466-2445; Email: jmcdonaldla-sprinasted.com Jenelle McDonald is a Project Coordinator with Springsted I Waters. She is responsible for supporting the lead consultants throughout the entire scope of the recruiting process as well as providing administrative support to Executive Vice President, Chuck Rohre. In this role, Jenelle designs/develops recruitment brochures, coordinates communications with candidates, processes resumes and distributes candidate questionnaires. She is also responsible for providing support to candidates regarding technical and logistical issues. She assists the consultants in scheduling semifinalist interviews, submitting profiles for background checks, education verification, as well as notifying the finalists of project status. Her responsibilities extend to editing presentations, advertisement placements and general office administration Springsted 1 Water-,,-,, G r r r City of Ashland, OR Proposal to Provide Professional Recruitment Services. of U.I RE'r rUlttTl Council Business Meeting February 6, 2018 Title: Safety Training (Onsite for Public Works & Electric Utility Departments) From: Thomas McBartlett Interim Director of Electric thomas.mcbartlett(a)-ashland. or. us From: Michael Morrison Public Works Superintendent michael.morrisonC-ashland. or.us Summary: Approval is being requested for a contract award exceeding $100,000.00. A formal competitive sealed proposal (Request for Proposal) is the required sourcing method for an acquisition of this type greater than $100,000.00. There were many potential safety training vendors contacted by telephone to inform them about the RFP, and subsequently, approximately 10 vendors and/or interested individuals logged into the City's website bidding system to view the RFP for Safety Training. A single proposal submitted by Evergreen Job & Safety Training, Inc. was received and evaluated and determined by the City to substantially comply with the requirements and criteria set forth in the Request for Proposal. A second proposal was received after closing (late). In accordance with OAR 137-047-0460 we are not allowed to consider late proposals. The City's intent is to award the contract for Safety Training (Onsite for Public Works & Electric Utility Departments) to Evergreen Job & Safety Training, Inc. The contract will be for a term of two (2) years with the option to renew the contract annually for up to three additional years for a maximum term of five (5) years. Actions, Options, or Potential Motions: I move that the Council, acting as the Local Contract Review Board, approve the public contract award to Evergreen Job & Safety Training, Inc. for Safety Training (Onsite for Public Works & Electric Utility Departments). Staff Recommendation: Staff recommends the public contract for Safety Training (Onsite for Public Works & Electric Utility Departments) be awarded to Evergreen Job & Safety Training, Inc. Resource Requirements: Public Works has budgeted $32,750 for FY 2018 and $32,750 for FY 2019. Electric has budgeted $30,000 for FY 2018 and $30,000 for FY 2019. Policies, Plans and Goals Supported: N/A Background and Additional Information: Safety training classes to be provided are as follows: Page Iof3 CITY OF ASHLAND NOTE: The following information is being provided to give you examples of the safety training classes that are applicable now for each department. These lists are not inclusive. The actual safety training classes that are scheduled may be subject to change depending on the department's needs and requirements at that time. Electric Utility Department i. CPR/First Aid/AED Training Public Works Department 2. Electrical Burns 1. CPR/First Aid/AED Training (30) 3. Energized Parts 2. CPR/First Aid/AED Training (30) 4. Job Observation 3. Back Safety 5. Substations 4. Job Observation 6. Underground Electrical Installations 5. Work Zone Traffic Control 7. Boom Truck & Crane Safety* Flagging 6. Excavations 8. Work Zone Traffic Control Flagger 9. ERP: Pole Top & Bucket Truck Rescue 7. Hand & Portable Power Tools 1o. Overhead Lines 8. Boom Truck & Crane Safety 11. De-energizing Lines & Equipment 9. ERP: Vault Rescue (Lockout & Tagout lo. Safety Data Sheets 12. Hot Stick & Grounds Testing ]I. Bloodborne Pathogens 13. Voltage Regulations 12. Ladders and Fall Protection 14. Rigging 15. Heat Illness & Ladder Safety *There are no boom trucks in PW fleet. PW uses '/4 to '/2 ton jib hoist cranes and trolley cranes up to 4 16. Metering tons. 17. Capacitors 18. Personal Protective Equipment *Electric fleet includes the following boom trucks and cranes: 1. 1998 Freightliner FL80 Terex Commander 4045 2. 2003 International 4300 Altec LRV55 3. 2003 Ford F550 Altec AT37G 4. 2005 Ford F550 Altec AT37G 5. 2008 International Line Truck Altec D3055ATR 6. 2011 International Line Truck Altec TA60 7. 2015 Ford F450 Altec AT30G Safety training classes are required to be compliant with the Oregon OSHA and NEC rules as follows: • Division 1, General Administrative Rules • Division 2, General Occupational Safety and Health Rules • Division 3, Construction Rules • NEC compliance training (Electric Utility) • OSHA regulated 1910.269 categories (including telecommunications training) The proposed cost for facilitating the monthly safety training classes with each department and conducting two (2) onsite job observations, which provides an outside opinion on the City's safe work practices, per department will be as follows: Page 2 of 3 CITY OF -ASHLAND FIVE (5) YEAR CONTRACT ELECTRIC UTILITY PUBLIC WORKS (16 Employees) (60 Employees) YEAR I $2,377.28/Month $28,527.36 $2,434.24/Month $29,210.88 March 2018 - February 2019 YEAR 2 $2,472.37/Month $29,668.44 $2,531.61/Month $30,379.32 March 2019 - February 2020 (.+4% increase/Year 2) (+4% increase/Year 2) YEAR3 $2,472,37/Month $29,668.44 $2,531.61/Month $30,379.32 March 2020 - February 2021 YEAR 4 $2,571.27/Month $30,855.24 $2.632.87/Month March 2021- February 2022 (+4% increase/Year 4) (+4% increase/Year 4) $31,594.44 YEAR 5 $2,571.27/Month $30,855.24 $2,632.87/Month $31,594.44 March 2022 - February 2023 ELECTRIC PUBLIC Total amount for 5-year contract: WORKS $149,574.72 $153.158.40 Cost per month includes monthly safety training classes (one per department each month), job observations (two per department each month), administration, training materials, record keeping, program development, insurance, travel, lodging, meals, and any other expenses required to facilitate the required safety trainings andjob observations. Attachments: None Page 3 of 3 CITY OF ASHLAND Council Business Meetin February • 1 Title: Support for Clean Energy Jobs Bill From: Adam Hanks Interim Asst. to the City Administrator adam@ashland.or.us Summary: Attached are two sample forms of potential actions Council could take to communicate support to the Oregon State Legislature for pending legislation initially labeled the "Clean Energy Jobs Bill", originally reviewed by the legislature as Senate Bill 1070 and now proposed as LC 44 (Senate version) and LC 176 (House version). Actions, Options, or Potential Motions: 1) I move approval of a resolution titled "A resolution in general support of State Legislative Action regulating greenhouse gas emissions (GHG)". Or 2) I move to authorize Mayor Stromberg to submit a letter of general support for State Legislative Action regulating greenhouse gas emissions (GHG) on behalf of the Mayor and Council. Staff Recommendation: Staff does not have a recommendation on this item. It is staff, s opinion, however, that in terms of impact on decisions on this matter in the upcoming legislative session, approval to send a letter of support would be just as effective as passage of a resolution. Should Council choose to move forward with an indication of support, staff further recommends that the language remain general/conceptual in nature as the previous SB 1070 will undoubtedly undergo significant redrafting with many currently unknown regulatory and administrative elements. Resource Requirements: N/A other than limited Administration Staff time. Policies, Plans and Goals Supported: While not specifically connected with an existing Council Goal, statewide regulations regarding greenhouse gas emissions could have a significant positive impact on the City's ability to meet the its local Climate and Energy Action Plan carbon mitigation goal of 8% annually. How the regulations are ultimately structured will be of local significance as well, since the CEAP places a priority on the social equity implications of any and all CEAP implementation. Page 1 of 2 CITY OF -ASHLAND i BacklZround and Additional Information: City Climate, Electric Utility and Administration staff will be actively monitoring and participating as this legislation moves forward through direct research and tracking as well as through various associations of which the City is a member, including the Oregon Municipal Electric Utilities (OMEU), Northwest Requirements Utilities (NRU), Northwest Energy Coalition and other less formal climate action and sustainability groups and coalitions staff is associated with. Additionally, at its December 13, 2017, meeting, the Conservation Commission unanimously approved a motion to encouraging the Mayor to sign a letter urging the state legislature to bring forward a bill supporting clean energy jobs creation, in line with the City of Ashland's Climate and Energy Action Plan goals. Attachments: Draft Support Resolution Draft Support Letter Oregon State Legislature - Clean Energy Jobs Work Groups https://w-ww.ore~,onlei!islature.gov/helm/Pages/clean-ener,ti,.aspx Page 2 of 2 CITY OF ASHLAND RESOLUTION NO. 2018- A RESOLUTION IN GENERAL SUPPORT OF STATE LEGISLATIVE ACTION REGULATING GREENHOUSE GAS EMISSIONS (GHG) RECITALS: A. City Council approved a community and municipal Climate and Energy Action Plan on March 7, 2017 B. City Council adopted an ordinance containing an intent to achieve the greenhouse gas reductions (mitigation) by eight percent per year on average consistent with the goal and methodology contained within the Climate and Energy Action Plan C. City Council and the community is aware that efforts and actions beyond the local 0 boundaries of Ashland are required in order for the 8 /o annual GHG reduction to be achieved. D. City Council places a high priority on social equity in the achievement of the 8% annual reduction goal THE CITY OF ASHLAND RESOLVES AS FOLLOWS: SECTION 1. The Mayor and Council endorse and support efforts undertaken by the State of Oregon to reduce greenhouse gas emissions through a regulatory limit on emissions that is in alignment with the overall greenhouse gas emission reduction goals set previously by the State of Oregon. SECTION 2. The Mayor and Council also urge these efforts to carefully consider social equity impacts associated with any proposed emissions reduction regulation or program. This resolution was duly PASSED and ADOPTED this day of , 2017, and takes effect upon signing by the Mayor. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of 12018. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Resolution No. 2018- Page 1 of 1 CITY OF ASHLAND February 7, 2018 Senator Michael Dembrow Representative Ken Helm The Ashland City Council and I are submitting this letter of support for the potential upcoming legislative review and redrafting of what has been labeled as the Clean Energy Jobs Bill (SB 1070). As we understand the current status, the former SB 1070 may be addressed in the upcoming legislative session as two separate Bill drafts, LC 44 in the Senate and LC 176 in the House, both with the overarching intent of creating a regulatory construct to limit and reduce greenhouse gas emissions generated within the State of Oregon. While it is understood that many details will need to be addressed, discussed and resolved, the Council and I wish to pledge our support and appreciation for the pursuit of statewide greenhouse gas mitigation regulations that set meaningful limits on future emissions with the overall intent of being.a major contributor to meeting the State's existing greenhouse gas emission reduction targets and goals. As you may or may not know, the City of Ashland recently adopted a very comprehensive and aggressive Climate and Energy Action Plan with an overall target of an eight percent reduction annually. It is understood that in addition to the successful implementation of our local plan, action will be required at the state and federal level to reach the stated local targets. Thank you for your work to date on this matter. We sincerely hope that this work continues and results in a greenhouse gas mitigation regulation and implementation strategy that meets the State's future emissions needs, while at the same time being cognizant of the impacts on its residents and the economic viability of the State. Sincerely, John Stromberg Mayor . ADMINISTRATION DEPT. Tex: 541-488-6062 20 East -531 20 East Main Main Street Fax: 541A88S311 Ashland, Oregon 97520 TTY: 800-735-2900 w ashland.or.us Council Business Meeting February 6, 2018 Title: Ordinance Amending AMC 6.42 to Restrict Retail Sales of Tobacco Products and Inhalant Delivery Systems To Adults Only From: David Lohman City Attorney david.lohman@ashland.or.us Summary: The proposed Ordinance amends Ashland Municipal Code 6.42 Tobacco Control to harmonize it with the recently-amended ORS 167.400 Tobacco Possession by Minors Prohibited. Actions, Options, or Potential Motions: Option 1: A Councilor could move to approve on First Reading by title only the proposed ordinance amending AMC Chapter 6.42 to restrict retail sales of tobacco products and inhalant delivery systems to persons under the age of 21, and take up Second Reading of the ordinance at an upcoming Council meeting. Option 2: Alternatively, a Councilor could move to repeal Chapter 6.42 altogether, leaving restrictions on the sale of tobacco products and inhalant delivery systems to State statute and eliminating the current local licensing requirement for commercial sales of such products. Staff Recommendation: Staff recommends approval of the attached proposed Ordinance at First Reading, as described in Option 1. Resource Requirements: N/A Policies, Plans and Goals Supported: • Keep Ashland a family-friendly community. (Council Goal 7) • Provide, promote, and enhance the security/safety, environmental health, and livability of the community. (Quality of Life Administrative Goal) Background and Additional Information: Since at least 1971, an Oregon statute on Offenses Involving Tobacco, ORS 167.400 et seq., has prohibited the purchase of tobacco products by persons under 18 years of age. A City ordinance, AMC 6.42, complements this purchase restriction by requiring a City license to sell tobacco products and prohibiting sales to persons under 18. On January 1, 2018, a revised version of ORS 167.400 took effect. The new version of the statute raises the minimum age for purchasing tobacco products from 18 years of age to 21 and includes inhalant delivery systems in the restriction. The new version of the statute now also includes a prohibition on selling tobacco products and inhalant delivery systems to persons under Page 1 of 2 CITY OF -ASH LAN D the age of 21-which means the statute now encompasses the City ordinance except for the revised age limit and the local licensing requirement. Option 1. Passage of the attached draft ordinance would bring AMC 6.42 into harmony with the State statute by prohibiting the sale of tobacco products to persons under the age of 21 - instead of 18 - and by including inhalant delivery systems in the prohibition. The licensing requirement retained under Option 1 makes it possible for the City to continue to have a registry of commercial outlets selling tobacco and related products and perhaps thereby provide a modicum of local pressure to discourage sales to teenagers. The City's application fee for licenses to sell such tobacco products currently costs $40, with a renewal fee of $20 per year, which recovers the approximate cost of administering the licensing program. Currently the City has 19 tobacco license holders. In the past, the resources dedicated to administration and enforcement of this ordinance have been minimal, and noncompliance by retail sellers of tobacco products appears not to have been a significant problem. Option 2. Instead of updating AMC 6.42, Council could simply repeal it, thereby scrapping the licensing requirement. This option would slightly reduce locally-imposed regulatory burdens on some businesses and, on the other hand, probably would slightly reduce cognizance of and responsiveness to the statutory prohibition. Attachments: Ordinance. Page 2 of 2 CITY OF ASHLAND I ORDINANCE NO. AN ORDINANCE AMENDING AMC 6.42 TO RESTRICT RETAIL SALES OF TOBACCO PRODUCTS OR INHALANT DELIVERY SYSTEMS TO ADULTS ONLY Annotated to show deletions and additions to the code sections being modified. Deletions are bold lined through and additions are bold underlined. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the City. The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, until recently, the Oregon statute on Offenses Involving Tobacco, ORS 167.400 et seq., prohibited persons under 18 years of age from purchasing or possessing tobacco products, except in specified circumstances, and did not, specifically prohibit sales of tobacco products to persons under 21 years of age and did not address the sale of inhalant delivery systems; WHEREAS, Ashland Municipal Code Chapter 6.42, Tobacco Control, currently requires a license for retail sales of tobacco products, prohibits the sale of any tobacco product to a person under 18 years of age, and does not address the sale of inhalant delivery systems; WHEREAS, the Oregon statute on Offenses Involving Tobacco was amended recently to prohibit persons from knowingly distributing, selling, or allowing the sale of tobacco products or inhalant delivery systems to persons under 21 years of age; and WHEREAS, bringing the City's ordinance on licensure of retail sellers of tobacco products into compliance with current Oregon statutes would require amending the ordinance to prohibit sales of tobacco products and inhalant delivery systems to persons under the age of 21. THEREFORE, THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Chapter 6.42 Tobacco Control of the Ashland Municipal Code is hereby amended to read as follows: Ordinance No. Page 1 of 4 Section 6.42.010 Purpose and Intent The purpose of this chapter is to provide measures of for controlling the access of tobacco products and inhalant delivery systems to adults only persons under the ate of 21 by licensing retailers of tobacco products. Section 6.42.020 Definitions For the purpose of this chapter the following definitions shall apply: A. "Employee" means any person who is employed by any employer in consideration of direct or indirect monetary wages or profit, and any person who volunteers his or her services to a non- profit entity. B. "Employer" means any person or entity who employs the services of one or more employees. C. "Inhalant delivery system" has the meaninlz given that term in ORS 431A.175. C D. "License" means a license issued under this chapter for the retail sale of tobacco products. -D E. "Licensee" means the holder of a valid license for the retail sale of tobacco products. E "Minor" means any per-son under 18 years of age. F. "Self service display" means the open display of tobacco products to which the public has access without the assistance of a store employee. G. "Tobacco product" , means any tobneeo cigarette, eigar, pipe tobneeo, smokeless ehewing , or any other form of tobaeeo whieh may be utilized for smoking, l.llV ♦1111 g, inhalation, or other means of in Testion. has the meaning given that term in ORS 431A.175. H. "Vendor assisted sale" means a sale where only the licensee or an employee of the licensee has access to the tobacco product or inhalant delivery systems and assists the customer by supplying the tobacco product or inhalant delivery systems and where the customer does not take possession of the tobacco product or inhalant delivery systems until after it is purchased. Section 6.42.030 License Requirement No person may sell tobacco products or inhalant delivery systems unless such person is a licensee or is employed by a licensee. A license is required for each location in which tobacco products or inhalant delivery systems are to be sold. All licenses shall be renewed annually on or before June 30 of each year. Section 6.42.040 License Fee No license shall be issued or continue to be valid unless the licensee has paid a fee, the amount of which is established by resolution of the city council, on or before June 30 of each year. Section 6.42.050 Non Transferability of License Licenses shall be non-transferable, except that a new license will be issued upon application to any licensee who changes the location of where tobacco products are sold. Section 6.42.060 Sales to Minors Person Under 21 Years Of Age No person shall sell, make available or otherwise provide, any tobacco product or inhalant delivery system to a mi-n-or person under 21 years of age. Section 6.42.070 Vendor Assisted Sales No person shall sell, permit to be sold, offer for sale or make available or accessible any tobacco product or inhalant delivery system by means of a vending machine or self-service display or Ordinance No. Page 2 of 4 any means other than vendor assisted sales, except in a store or other establishment that prohibits persons under 21 years of age from entering the store or establishment. A. Vending maeb-ime. sales in taver-ns, eoelitail ,industrial plants as defined in 308.408, hotels, and motels; B. Smoke shops. For purposes of this seetion, a smoke shop is a store that sells pr-imar4ly the minor is aeeompanied by the minor's par-eat. To qualif~, for- this exeeption, the smoke shop must post signs in the store, whieh are eonspieneus upon entering, signs stating Minor-s Permitted ivith 0 Parent." No store may qualify as a smoke shop under- seetion if the store is located on th s an automobile sen4ee station, as defined in seetion 18.08.0754. Section 6.42.090 Non Retaliation No employer shall discharge, refuse to hire, or in any manner retaliate against any employee, applicant for employment, or customer because such employee, applicant, or customer reports or attempts to prosecute any violation of this chapter. Section 6.42.100 Penalties A. Any person who violates any provision of this chapter shall be subject tofine -as-a Class I violation Section 1.08.020 of the Ashland Municipal Code. Any violation of this section is a Class I violation, and may have the license issued under this Chapter suspended as follows: 1. In the case of a second violation within a two year period, the licensee shall be fined not less than $350.00 and the license suspended for 45 days. 2. In the case of three or more violations within a two year period, the licensee shall be fined $500.00 and the license revoked. Any person whose license has been revoked shall be ineligible to apply for a new license, at any location, for six months after the effective date of the revocation. B. Any person who violates section 6.42.030 shall be subject to a fine of $500.00 for each day a violation occurs. C. License suspensions are subject to appeal pursuant to AMC 2.30. SECTION 2. Savings. Notwithstanding this amendment/repeal, the City ordinances in existence at the time any criminal or civil enforcement actions were commenced, shall remain valid and in full force and effect for purposes of all cases filed or commenced during the times said ordinances(s) or portions thereof were operative. This section simply clarifies the existing situation that nothing in this Ordinance affects the validity of prosecutions commenced and continued under the laws in effect at the time the matters were originally filed. SECTION 3. Severability. The sections, subsections, paragraphs and clauses of this ordinance are severable. The invalidity of one section, subsection, paragraph, or clause shall not affect the validity of the remaining sections, subsections, paragraphs and clauses. SECTION 4. Codification. Provisions of this Ordinance shall be incorporated in the City Code, and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this Ordinance may be renumbered or re-lettered, provided however, that any Ordinance No. _ Page 3 of 4 Whereas clauses and boilerplate provisions (i.e., Sections Nos. 2-4) need not be codified, and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of , 2018, and duly PASSED and ADOPTED this day of 2018. Melissa Huhtala, City Recorder SIGNED and APPROVED this day of 12018. John Stromberg, Mayor Reviewed as to form: David H. Lohman, City Attorney Ordinance No. Page 4 of 4