Washington State Department of Ecology 5/20/2019

State of Washington Department of Ecology Page 18 of 39 Agreement No: WQC-2019-EverPW-00051 Project Title: Reduction of CSOs at Two Snohomish River Outfalls Recipient Name: City of Everett Public Works Department 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. "Section 319"means the section of the Clean Water Act that provides funding to address nonpoint sources of water pollution. "Senior Lien Obligations"means all revenue bonds and other obligations of the RECIPIENT outstanding on the date of execution of this loan agreement(or subsequently issued on a parity therewith,including refunding obligations)or issued after the date of execution of this loan agreement having a claim or lien on the Gross Revenue of the Utility prior and superior to the claim or lien of the loan,subject only to Maintenance and Operation Expense. "State Water Pollution Control Revolving Fund(Revolving Fund)"means the water pollution control revolving fund established by Chapter 90.50A.020 RCW. "Termination Date"means the effective date of ECOLOGY's termination of the agreement. "Termination Payment Date"means the date on which the RECIPIENT is required to repay to ECOLOGY any outstanding balance of the loan and all accrued interest. "Total Eligible Project Cost"means the sum of all costs associated with a water quality project that have been determined to be eligible for ECOLOGY grant or loan funding,including any required recipient match. "Total Project Cost"means the sum of all costs associated with a water quality project,including costs that are not eligible for ECOLOGY grant or loan funding. "ULID"means any utility local improvement district of the RECIPIENT created for the acquisition or construction of additions to and extensions and betterments of the Utility. "ULID Assessments"means all assessments levied and collected in any ULID. Such assessments are pledged to be paid into the Loan Fund(less any prepaid assessments permitted by law to be paid into a construction fund or account). ULID Assessments will include principal installments and any interest or penalties which may be due. "Utility"means the sewer system, stormwater system,or the combined water and sewer system of the RECIPIENT,the Net Revenue of which is pledged to pay and secure the loan. SECTION 2: THE FOLLOWING CONDITIONS APPLY TO ALL RECIPIENTS OF WATER QUALITY COMBINED FINANCIAL ASSISTANCE FUNDING. The Water Quality Financial Assistance Funding Guidelines are included in this agreement by reference and are available on ECOLOGY's Water Quality Program website. A. Architectural and Engineering Services: The RECIPIENT certifies by signing this agreement that the requirements of Chapter 39.80 RCW, "Contracts for Architectural and Engineering Services,"have been,or shall be,met in procuring qualified architectural/engineering services. The RECIPIENT shall identify and separate eligible and ineligible costs in the final architectural/engineering services contract and submit a copy of the contract to ECOLOGY. B.Acquisition: The following provisions shall be in force only if the project described in this agreement is an acquisition project: a. Evidence of Land Value and Title. The RECIPIENT shall submit documentation of the cost of the property rights and the type of ownership interest that has been acquired. b. Legal Description of Real Property Rights Acquired.The legal description of the real property rights purchased with funding assistance provided through this agreement(and protected by a recorded conveyance of rights to the State of Washington) shall be incorporated into the agreement before final payment. c. Conveyance of Rights to the State of Washington.Upon purchase of real property rights(both fee simple and lesser interests),the RECIPIENT shall execute the document necessary to convey certain rights and responsibilities to ECOLOGY, on behalf of the State of Washington. The documents required will depend on the project type,the real property rights being acquired,and whether or not those rights are being acquired in perpetuity(see options below). The RECIPIENT shall use language provided by ECOLOGY,to record the executed document in the County where the real property lies,and to Version 10/30/2015