Washington State Department of Ecology 5/5/2019

State of Washington Department of Ecology Page 16 of 38 Agreement No: WQC-2019-EverPW-00052 Project Title: Port Gardner Bay Outfalls Water Quality Treatment Retrofit Recipient Name: City of Everett Public Works Department Completion Date. "Final Loan Repayment Schedule"means the schedule of loan repayments over the term of the loan based on the Final Loan Amount. "Forgivable Principal"means the portion of a loan that is not required to be paid back by the borrower. "General Obligation Debt"means an obligation of the RECIPIENT secured by annual ad valorem taxes levied by the RECIPIENT and by the full faith,credit,and resources of the RECIPIENT. "General Obligation Payable from Special Assessments Debt"means an obligation of the RECIPIENT secured by a valid general obligation of the Recipient payable from special assessments to be imposed within the constitutional and statutory tax limitations provided by law without a vote of the electors of the RECIPIENT on all of the taxable property within the boundaries of the RECIPIENT. "Gross Revenue"means all of the earnings and revenues received by the RECIPIENT from the maintenance and operation of the Utility and all earnings from the investment of money on deposit in the Loan Fund,except(i)Utility Local Improvement Districts(ULID)Assessments,(ii)government grants,(iii)RECIPIENT taxes,(iv)principal proceeds of bonds and other obligations,or(v)earnings or proceeds(A)from any investments in a trust,Defeasance, or escrow fund created to Defease or refund Utility obligations or(B)in an obligation redemption fund or account other than the Loan Fund until commingled with other earnings and revenues of the Utility or(C)held in a special account for the purpose of paying a rebate to the United States Government under the Internal Revenue Code. "Guidelines"means the ECOLOGY's Funding Guidelines that that correlate to the State Fiscal Year in which the project is funded. "Initiation of Operation Date"means the actual date the Water Pollution Control Facility financed with proceeds of the loan begins to operate for its intended purpose. "Loan"means the Washington State Water Pollution Control Revolving Fund Loan or Centennial Clean Water Fund (Centennial)Loan made pursuant to this loan agreement. "Loan Amount"means either an Estimated Loan Amount or a Final Loan Amount,as applicable. "Loan Fund"means the special fund created by the RECIPIENT for the repayment of the principal of and interest on the loan. "Loan Security"means the mechanism by which the RECIPIENT pledges to repay the loan. "Loan Term"means the repayment period of the loan. "Maintenance and Operation Expense"means all reasonable expenses incurred by the RECIPIENT in causing the Utility to be operated and maintained in good repair,working order,and condition including payments to other parties, but will not include any depreciation or RECIPIENT levied taxes or payments to the RECIPIENT in lieu of taxes. "Net Revenue"means the Gross Revenue less the Maintenance and Operation Expense. "Original Engineer's Estimate"means the engineer's estimate of construction costs included with bid documents. "Principal and Interest Account"means,for a loan that constitutes Revenue-Secured Debt,the account created in the loan fund to be first used to repay the principal of and interest on the loan. "Project"means the project described in this agreement. "Project Completion Date"means the date specified in the agreement on which the Scope of Work will be fully completed. This term is only used in loan agreements. "Project Schedule"means that schedule for the project specified in the agreement. "Revenue-Secured Debt"means an obligation of the RECIPIENT secured by a pledge of the revenue of a utility and one not a general obligation of the RECIPIENT. "Reserve Account"means,for a loan that constitutes a Revenue Secured Debt and if specifically identified as a term and condition of the funding agreement,the account of that name created in the loan fund to secure the payment of the principal of and interest on the loan. "Risk-Based Determination"means an approach to sub-recipient monitoring and oversight based on risk factors associated to a RECIPIENT or project. "Scope of Work"means the tasks and activities constituting the project. Version 10/30/2015