WA Dept of Ecology WQC-2016-EverPW-00014 6/8/2016

State of Washington Department of Ecology Page 24 of 41 'Agreement No: WQC-2016-EverPW-00014 Project Title: Cleveland Ave.Sewer Replacement and Stormwater Separation Recipient Name: City of Everett-Public Works Department structural steel,reinforced precast concrete,and construction materials. The RECIPIENT may request waiver from this requirement from the Administrator of the Environmental Protection Agency.The RECIPIENT must coordinate all waiver requests through ECOLOGY. This provision does not apply if the engineering plans and specifications for the project were approved by ECOLOGY prior to January 17,2014. ECOLOGY reserves the right to request documentation of RECIPIENT'S compliance with this provision. C.Authority of RECIPIENT: This agreement is authorized by the Constitution and laws of the state of Washington, including the RECIPIENT's authority,and by the RECIPIENT pursuant to the authorizing ordinance or resolution. The RECIPIENT shall submit a copy of the authorizing ordinance or resolution to the ECOLOGY Financial Manager before this agreement wil be signed by ECOLOGY. D.Fiscal Sustainability Plan Certification: The RECIPIENT shall submit a completed Fiscal Sustainability Plan Certification before this agreement is signed by ECOLOGY. The Fiscal Sustainability Plan Certification is available from the ECOLOGY Financial Manager or on the Water Quality Program website. E.Free Service: The RECIPIENT shall not furnish utility service to any customer free of charge if providing that free service affects the RECIPIENT's ability to meet the obligations of this agreement. F. Insurance: The RECIPIENT shall at all times carry fire and extended coverage,public liability and property damage,and such other forms of insurance with responsible insurers and with policies payable to the RECIPIENT on such of the buildings,equipment,works,plants,facilities,and properties of the Utility as are ordinarily carried by municipal or privately-owned utilities engaged in the operation of like systems,and against such claims for damages as are ordinarily carried by municipal or privately-owned utilities engaged in the operation of like systems,or it shall self-insure or participate in an insurance pool or pools with reserves adequate,in the reasonable judgment of the RECIPIENT,to protect it against loss. G. Loan Interest Rate and Terms: This loan agreement shall remain in effect until the date of final repayment of the loan,unless terminated earlier according to the provisions herein. When the Project Completion Date has occurred,ECOLOGY and the RECIPIENT shall execute an amendment to this loan agreement which details the final loan amount(Final Loan Amount),and ECOLOGY shall prepare a final loan repayment schedule. The Final Loan Amount shall be the combined total of actual disbursements made on the loan and all accrued interest to the computation date. The Estimated Loan Amount and the Final Loan Amount(in either case,as applicable,a"Loan Amount") shall bear interest based on the interest rate identified in this agreement as the"Effective Interest Rate,"per annum,calculated on the basis of a 365 day year. Interest on the Estimated Loan Amount shall accrue from and be compounded monthly based on the date that each payment is mailed to the RECIPIENT. The Final Loan Amount shall be repaid in equal installments semiannually over the term of this loan"Loan Term"as outlined in this agreement. H. Loan Repayment: Sources of Loan Repayment 1.Nature of RECIPIENT'S Obligation. The obligation of the RECIPIENT to repay the loan from the sources identified below and to perform and observe all of the other agreements and obligations on its part contained herein shall be absolute and unconditional,and shall not be subject to diminution by setoff,counterclaim,or abatement of any Version 10/30/2015