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HomeMy WebLinkAboutCouncil 10/19/2009AGENDA RENTON CITY COUNCIL REGULAR MEETING October 19, 2009 Monday, 7 p.m. 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. SPECIAL PRESENTATION: 4. ADMINISTRATIVE REPORT Mayor's Presentation of 2010 Budget 5. AUDIENCE COMMENT (Speakers must sign up prior to the Council meeting. Each speaker is allowed five minutes. The comment period will be limited to one-half hour. The second audience comment period later on in the agenda is unlimited in duration.) When you are recognized by the Presiding Officer, please walk to the podium and state your name and city of residence for the record, SPELLING YOUR LAST NAME. NOTICE to all participants: pursuant to state law, RCW 42.17.130, campaigning for any ballot measure or candidate from the lectern during any portion of the council meeting, and particularly, during the audience comment portion of the meeting, is PROHIBITED. 6. CONSENT AGENDA The following items are distributed to Councilmembers in advance for study and review, and the recommended actions will be accepted in a single motion. Any item may be removed for further discussion if requested by a Councilmember. a. Approval of Council meeting minutes of 10/5/2009. Council concur. b. City Clerk reports bid opening on 9/21/2009 for CAG-09-158, Maplewood Golf Course Driving Range Repair Project; five bids; engineer's estimate $90,000 - $110,000; and submits staff recommendation to award the contract to the low bidder, Ebenal General, Inc., in the amount of $97,455. Council concur. c. Community and Economic Development Department recommends approval to revise the amounts of the impact fees collected on behalf of the Issaquah and Kent School Districts, adopt the 2009 Issaquah School District Capital Facilities Plan and the 2009/2010 through 2014/2015 Kent School District Capital Facilities Plan, and approve the collection of an impact fee on behalf of the Renton School District and adopt the Renton School District 2008 Capital Facilities Plan. Refer to Finance Committee; set public hearing on 11/9/2009. d. Development Services Division recommends approval of a Master Street Use Agreement with Zayo Bandwidth, Inc. to install conduit and fiber to complete a new network connection from Seattle to Spokane. Refer to Transportation (Aviation) Committee). e. Human Resources and Risk Management Department recommends approval of a three-year contract in the amount of $30,240 per year with EnvisionRX for the administration of healthcare pharmacy benefits. Refer to Finance Committee. f. Public Works Department recommends approval of the purchase of a mobile sand bagging machine, Megga Bagger MB-T2, in the amount of $29,000 from Fund 501 to assist in the production of sandbags to protect both private and public assets from the elevated risk of potential flooding from the Green River. Council concur. g. Transportation Systems Division recommends approval of an agreement with the Washington State Department of Transportation to accept funds in the amount of $88,939 for the 2009 - 2010 Commute Trip Reduction program. Council concur. (See 8. for resolution.) (CONTINUED ON REVERSE SIDE) CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Dept/Div/Board.. Staff Contact...... Executive/City Clerk Bonnie Walton Subject: Bid opening on September 21, 2009, for CAG-09-158, Maplewood Golf Course Driving Range Repair Project Exhibits: Staff Recommendation Bid Tabulation Sheet (five bids) Recommended Action: Council concur Al #: Lo b. For Agenda of: October 19, 2009 Agenda Status Consent .............. Public Hearing.. Correspondence.. Ordinance ............. Resolution ............ Old Business........ New Business....... Study Sessions...... Information ......... Approvals: Legal Dept......... Finance Dept..... Other ............... Fiscal Impact: Expenditure Required... $97,455 Transfer/Amendment....... Amount Budgeted....... Revenue Generated......... Total Project Budget $140,000 City Share Total Project.. SUMMARY OF ACTION: Engineer's Estimate: $90,000 - $110,000 In accordance with Council procedure, bids submitted at the subject bid opening met the following three criteria: There was more than one bid, the low bid was within the project budget, and there were no irregularities with the low bid. Therefore staff recommends acceptance of the low bid submitted by Ebenal General, Inc. in the amount of $97,455. STAFF RECOMMENDATION: Accept the low bid submitted by Ebenal General, Inc. in the amount of $97,455. X COMMUNITY SERVICES City of DEPARTMENT M E M O R A N D U M DATE: October 7, 2009 TO: Randy Corman, Council President Members of Renton City Council VIA: Denis Law, MayoL/� ��-- FROM: Terry Higashiyama, Community Services Administrator STAFF CONTACT: Kelly Beymer, Parks and Golf Course Director SUBJECT: Maplewood Golf Course Driving Range Drainage Repair Project The bid opening for the Maplewood Golf Course Driving Range Drainage Repair Project was held on Monday, September 21, 2009 at 3:00pm. Five (5) bids were submitted. The engineer cost estimate was $90,000 - $110,000 to include the base bid and Additive Alternate No. 1 (Concrete block retaining wall). The project consists of peeling back synthetic turf, re -grade and improve sub grade, installing specified drain lines and catch basins to connect to existing storm drainage, reinstall or install new synthetic turf where indicated and clean-up/repair any damage. The existing drainage and turf have been in place for nine (9) years. Existing drainage does not have adequate coverage and has caused areas of unsafe maintenance work for both staff and equipment. Drainage repair will greatly improve the safety conditions and maintenance efficiency. The low base bid received for the project was $97,455.00, with an Additive Alternate No. 1 bid or $10,950.00. The bid number includes WSST and was submitted by Ebenal General, Inc. City staff has reviewed the low bid for completeness and reference checks, finding no irregularities. Staff proposes to accept the base bid only, for a total cost of $97,455.00. The budget for this project is $140,000 and will be funded by the Maplewood Golf Course Capital Improvements fund (424). Upon completion of the project, the total cost including engineering and design fees will total $124,735.00. Parks division/golf course asks that Council Concur with staff recommendation that the base bid be awarded to Ebenal General, Inc. in the amount of $97,455.00. CC: Bonnie Walton, City Clerk Jason Seth, Deputy City Clerk Steve Meyers, Golf Course Maintenance Supervisor c:\documents and settings\jseth\local settings\temporary internet files\content.outlook\spsdk6fz\memo cs to council committee via mayor award bid ebenal.doc—award bid Ebenal CITY OF RENTON BID TABULATION SHEET PROJECT: Maplewood Golf Course Driving Range Repair Project; Page 1 CAG-09-158 DATE: September 21, 2009 FORMS BID State. Prefered BIDDER Proposal Bid of Bidder Adden Triple Bond Qual. Quals. Form "Includes Sales Tax Celtic Concrete 45108 SE 130th PI x x x x x $105,633.00 North Bend, Wa 98045 Alt 1- $13,068.00 Damien Howard Ebenal General, Inc. P.O. Box 31548 x x x x x $97,455.00 Bellingham, Wa 98228-2548 Alt 1- $10,950.00 David Ebenal Ohno Construction, Co. 9416 M.L.K. Jr. Way S. x x x x x x $105,174.75 Seattle, WA 98118 Alt 1- $7,227.00 Yoshio Ohno Premier Field Development P.O. Box 1430 x x x x x $118,577.55 Lake Stevens, WA 98258 Alt - 1$13,840.80 JoAnne Kasch RN Falk, LLC 33625 53rd Ave S x x x x x $175,467.18 Auburn, WA 98001 Alt 1- $7,227.00 Rn Falk ENGINEER'S ESTIMATE LEGEND: Forms: Triple Form: Non -Collusion Affidavit, Anti -Trust Claims, Minimum Wage $90,000 - $110,000 CITY OF RENTON COUNCIL AGENDA BILL Al #: . . Submitting Data: For Agenda of: Dept/Div/Board.. CED/Planning October 19, 2009 Staff Contact...... Rocale Timmons (x 7219) Agenda Status Consent .............. Subject: Public Hearing.. X School District Impact Fees Correspondence.. Ordinance ............. X Exhibits: Issue Paper Draft Ordinance Resolution............ Old Business........ New Business....... Study Sessions...... Information......... Recommended Action: Approvals: Refer to Finance Committee and set Public Hearing on Legal Dept......... November 9, 2009 Finance Dept...... Other ............... Fiscal Impact: Expenditure Required... $0 Transfer/Amendment....... Amount Budgeted....... 0 Revenue Generated......... Total Project Budget $0 City Share Total Project.. SUMMARY OF ACTION: Renton Municipal Code 4-1-160 J requires the annual review of the Issaquah and Kent School Districts' Capital Facilities Plan and assessed impact fee. Issaquah has recommended a $2,151 reduction in the single-family impact fee for the upcoming year to $3,344. Kent has asked for a $90 increase in the single-family impact fee to $5,394 and a $56 increase in the multi -family unit impact fee for the upcoming year to $3,322. Additionally, since projected growth in student enrollment will exceed facility capacity in the next six years, the Renton School District is asking the City to collect an impact fee on its behalf. The amount proposed by the Renton School District is $6,310 per new single-family home and $1,258 per new multi -family unit. STAFF RECOMMENDATION: The Administration recommends that the City Council: • Set Public Hearing on November 9, 2009; and • Adopt the Issaquah School District 2009 Capital Facilities Plan and approve the collection of the requested impact fee of $3,344 per new single-family home within the District; and • Adopt the Kent School District 2009/2010 — 2014/2015 Capital Facilities Plan and approve the collection of the requested impact fees of $5,394 per new single-family home and $3,322 per new multi -family unit within the District; and • Adopt the 2008 Renton School District Capital Facilities Plan and approve the collection of the requested impact fees of $6,310 per new single-family home and $1,258 per new multi -family unit within the District. DEPARTMENT OF COMMUNITY p o city of AND ECONOMIC DEVELOPMENT M E M O R A N D U M DATE: October 9, 2009 TO: Randy Corman, Council President Members of the Renton City Council VIA: Denis Law, Mayor ^2 �r Y'L- FROM: Alex Pietsch, Administrator Nvue STAFF CONTACT: Rocale Timmons, x7219 SUBJECT: School District Impact Fees ISSUE: • Should the City of Renton reduce the school impact fee currently collected on behalf of the Issaquah School District? • Should the City of Renton increase the school impact fees currently collected on behalf of the Kent School District for new single-family homes and new multi -family units? • Should the City of Renton adopt a school impact fee for new single-family homes and multi -family units to be collected on behalf of the Renton School District? RECOMMENDATION: • Collect the requested impact fee of $3,344 for each new single-family home on behalf of the Issaquah School District. • Collect the requested impact fee of $5,394 for each new single-family home and $3,322 for each new multi -family unit on behalf of the Kent School District. • Amend Section 4-1-160 of the Development Regulations to allow the collection of an impact fee of $6,310 for each new single-family home and $1,258 for each new multi -family unit on behalf of the Renton School District. BACKGROUND SUMMARY: Washington's Growth Management Act authorizes the collection of impact fees to help ensure that those responsible for growth pay a fair share for the cost of new facilities Randy Corman, Council President Page 2 of 3 October 9, 2009 needed to support new growth. School impact fees are assessed only on newly built household units and can only be used to support the capital costs of expanded existing or building new facilities. Operations and maintenance costs are not eligible expenses for impact fees. Impact fees can be assessed to support a number of different capital funds that are needed to support growth. Commonly, impact fees are collected for things such as improvements to schools, parks, and transportation systems. The amount collected for an impact fee is based upon a capital facilities plan that must show that there is a need for capital projects due to growth. In November 1999, the City adopted Ordinance No. 4804, which added a new section to Title IV entitled "School Impact Fees". This section authorized the City to collect school impact fees for the Issaquah School District and provided for an annual review of the fee structure. Last year the City Council approved the collection of a fee of $5,495 on behalf of the Issaquah School District for each new single-family dwelling built within the District's boundaries. This year, the Issaquah School District has asked for another decrease in the fee of $2,151 to $3,344 based upon its Capital Facilities Plan as a result of bonds passed by voters to fund new school construction and expansion. Plans in the 2009 Capital Facilities Plan include expansions of middle school and high school facilities that serve current Renton residents, as well as future residents within Renton's Potential Annexation Area (PAA). Three years ago, given the likelihood of annexation of land to the City of Renton within the boundaries of the Kent School District, the Council authorized the collection of an impact fee for new single-family homes. Two years ago, the. City also authorized the collection of a multi -family impact fee. The Kent School District is requesting a $90 increase in the fee for single-family homes the upcoming year, to bring the total amount to $5,394 per new single-family home. Additionally, the District is requesting a $56 increase in the fee for new multi -family units, to bring the total amount to $3,322 for the upcoming year. The District's 2009/2010 — 2014/2015 Capital Facilities Plan includes the addition of facilities that would serve current and future (within the PAA) Renton residents, which includes additional high school classroom space, acquisition of a site for an elementary school, and expansion of existing elementary school facilities. Estimates within Renton School District's most recent Capital Facilities Plan show that there is a need for an impact fee to mitigate the costs of growth on the District. The District was able to complete environmental review early in 2009 for the 2009 Capital Facilities Plan. Within the next six years, the District anticipates additional facilities will be needed to serve elementary and middle school students, and additional facilities to serve all grade levels will be needed within the next 20 years. As a result, the Renton School District has asked the City of Renton to adopt its December 2008 Capital Facilities Plan and assess an impact fee on its behalf in the amount of $6,310 per new single family home and $1,258 per new multi -family unit. Randy Corman, Council President Page 3 of 3 October 9, 2009 CONCLUSION: The City should collect a $3,344 school impact fee for new single-family homes on behalf of the Issaquah School District. The City should also collect a school impact fee on behalf of the Kent School District in the amount of $5,394 per new single-family unit and $3,322 per new multi -family unit. In addition, the City should authorize the collection of school impact fee on behalf of the Renton School District in the amount of $6,310 per new single-family residence and $1,258 per new multi -family unit. cc: Jay Covington, Chief Administrative Officer Chip Vincent, Planning Director CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING CHAPTER 1, ADMINISTRATION AND ENFORCEMENT, OF TITLE IV (DEVELOPMENT REGULATIONS) OF ORDINANCE NO. 4260 ENTITLED "CODE OF GENERAL ORDINANCES OF THE CITY OF RENTON, WASHINGTON" SETTING THE IMPACT FEE AT $3,344 PER NEW SINGLE- FAMILY HOME IN THE ISSAQUAH SCHOOL DISTRICT, SETTING THE IMPACT FEE AT $5,394 PER NEW SINGLE FAMILY HOME AND $3,322 PER NEW MULTI -FAMILY HOME IN THE KENT SCHOOL DISTRICT; SETTING THE IMPACT FEE AT $6,310 PER NEW SINGLE FAMILY HOME AND $1,258 PER NEW MULTI -FAMILY HOME IN THE RENTON SCHOOL DISTRICT; AND ADOPTING THE CAPITAL FACILITIES PLANS OF THE SCHOOL DISTRICTS WITHIN THE CITY OF RENTON. WHEREAS, under Section 4.1.160 of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations), of Ordinance No. 4260 known as the "Revised and Compiled Ordinances of the City of Renton," as amended, and the maps and reports adopted in conjunction therewith, the City of Renton has heretofore collected on behalf of the Issaquah School District an impact fee of $5,495 for each new single-family home built within the District's boundaries; and WHEREAS, the Issaquah School District requested that the City of Renton adopt the District's 2009 Capital Facilities Plan, which includes an decrease in the impact fee for new single-family homes to $3,344; and WHEREAS, under Section 4.1.160 of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations), of Ordinance No. 4260 known as the "Revised and Compiled Ordinances of the City of Renton," as amended, and the maps and reports adopted in conjunction therewith, the City of Renton has heretofore collected on behalf of the Kent School District an impact fee of $5,304 for each new 1 single-family home and $3,266 per new multi -family unit built within the District's boundaries; and WHEREAS, the Kent School District requested that the City of Renton adopt the District's 2009/2010 — 2014/2015 Capital Facilities Plan, which recommends an increase in the impact fee for new single-family homes to $5,394 and an increase in the impact fee for new multi -family units to $3,322; and WHEREAS, until recently the Renton School District has been able to accommodate growth within existing facilities, but currently estimates a need for additional school facilities within the next six years to accommodate anticipated growth; and WHEREAS, the Renton School District has requested that the City of Renton adopt the District's 2008 Capital Facilities Plan, which recommends the collection of a impact fee for new single-family homes of $6,310 and the collection of an impact fee for new multi -family units of $1,258; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Note 5 of subsection 4-1-160D. Fee Calculations, of Chapter 1, Administration and Enforcement, of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Revised and Compiled Ordinances of the City of Renton, Washington" is hereby amended as follows: 5. The City Council may adjust the fee calculated under this subsection, as it sees fit, to take into account local conditions such as, but not limited to, price differentials throughout the District in the cost of new housing, school occupancy levels, 2 and the percent of the District's Capital Facilities Budget, which will be expended locally. The City council establishes the following fees: Single -Family Multi -Family Fee Amount Fee Amount Issaquah $3,344.00 Not School Applicable. District Kent School $5,394.00 $3,322.00 District Renton $6,310.00 $1,258.00 School District SECTION II. Subsection 4-1-160J, Adoption of the District Capital Facilities Plan and Submission of the Annual Updates and Report and Data, of Chapter 1, Administration and Enforcement of Title IV (Development Regulations) of Ordinance No. 4260 entitled "Revised and Compiled Ordinances of the City of Renton, Washington" is hereby amended as follows: 1. The following capital facilities plans are hereby adopted by reference by the City as part of the Capital Facilities Element of the City's Comprehensive Plan: a. The Issaquah School District No. 4112007 2009 Capital Facilities Plan; b. The Kent School District No. 415 290:- 20082009 2010 — 2012 20132014 2015 Capital Facilities Plan:,- b:c.The Renton School District No. 403 2008 Capital Facilities Plan. 2. On an annual basis, the District shall submit the following materials to the City: a. The annual update of the District's Capital Facilities Plan; b. An annual report on the School Impact Fee Account, showing the source and amount of all monies collected, earned, or received, and the 3 public improvements that were financed in whole or in part by impact fees. SECTION 111. This ordinance shall be effective upon its passage, approval and five days after its publication. PASSED BY THE CITY COUNCIL this day of Bonnie Walton, City Clerk APPROVED BY THE MAYOR this day of , Approved as to form: Lawrence J. Warren, City Attorney Date of Publication: •" Denis Law, Mayor 4 CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Dept/Div/Board. Staff Contact...... Al #: �, Community and Economic Department I For Agenda of: October 19, 2009 Development Services Division Jan Illian, x7216 Subject: Master Street Use Agreement for Zayo Bandwidth Inc. Exhibits: Master Use Agreement Issue Paper General Information on Zayo Bandwidth. Agenda Status Consent .............. Public Hearing.. Correspondence.. Ordinance ............. Resolution............ Old Business........ New Business....... Study Sessions...... Information......... X Recommended Action: Approvals: Refer to Transportation Committee Legal Dept......... X Finance Dept...... Other ............... Fiscal Impact: Expenditure Required.. Transfer/Amendment....... Amount Budgeted....... Revenue Generated..... $5,000 Total Project Budget City Share Total Project.. SUMMARY OF ACTION: Approval of this document will allow Zayo Bandwidth to install conduit and fiber to complete a segment of Zayo's new long haul connection from the carrier hotel in Seattle to Spokane. STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to execute the Master Use Agreement with Zayo Bandwidth Rentonnet/agnbill/ bh DEPARTMENT OF COMMUNITY p City of & ECONOMIC DEVELOPMENT M E M O R A N D U M DATE: October 9, 2009 TO: Randy Corman, Council President Members of Renton City Council VIA: Denis Law, Mayor�1— FROM: Alex Pietsch, Administrator STAFF CONTACT: Jan Illian Ext. 7216 SUBJECT: Zayo Bandwidth Master Use Agreement ISSUE Zayo Bandwidth Northwest, Inc., together with its subsidiaries and affiliates, is requesting a Master Use Agreement to install conduit and fiber optic cable within the City of Renton. RECOMMENDATION The Community and Economic Development Department recommends that Council authorize the Mayor and City Clerk to execute the Master Use Agreement with Zayo Bandwidth. BACKGROUND Zayo Bandwidth, LLC was formed in 2007 to provide bandwidth services to carriers, web -centric companies, public institutions and enterprises. Zayo Bandwidth, a wholly owned subsidiary of Zayo Group, owns and operates fiber optic networks totaling more than 19,000 fiber route miles. Zayo Bandwidth offers services in 129 markets spanning 23 states. Zayo Bandwidth's mission is to provide fiber -based bandwidth, responsive solutions and a strong and growing network. Zayo collaborates with carrier and enterprise customers with large and growing needs for bandwidth to develop fiber - based bandwidth solutions that meet their specific requirements. Zayo Bandwidth Northwest, Inc. was born with Zayo's acquisition of Northwest Telephone, Inc. Zayo plans to lay about 1160 feet of conduit and pull fiber through a combination of open trenching and directional boring on the north side of South. 2"d Street, placing a two inch conduit from a vault owned by Electric Lightwave Inc. at South 2nd Street and is\master use agreements\zayo bandwidth\issue to council via mayor.doc Zayo Bandwidth Page 2 of 2 October 9, 2009 Burnett Ave South to a vault owned by 360 Networks near 105 Wells Ave South. This conduit will complete a segment of Zayo's new longhaul connection from the carrier hotel in Seattle to Spokane. This connection will provide high speed data transfer. All restoration, as necessary, will be to the City of Renton specifications. is\master use agreements\zayo bandwidth\issue to council via mayor.doc CITY OF RENTON, WASHINGTON ORDINANCE NO. AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, GRANTING UNTO ZAYO BANDWIDTH NORTHWEST, INC., A WASHINGTON CORPORATION, ITS AFFILIATES, SUCCESSORS AND ASSIGNS, THE RIGHT, PRIVILEGE, AUTHORITY AND MASTER USE AGREEMENT TO INSTALL TELECOMMUNICATION FACILITIES TOGETHER WITH APPURTENANCES THERETO, UPON, OVER, UNDER, ALONG, ACROSS THE STREETS, AVENUES AND ALLEYS OF THE CITY OF RENTON WITHIN CITY RIGHT OF WAY AND PUBLIC PROPERTIES OF THE CITY. BE IT ORDAINED BY THE MAYOR AND THE CITY COUNCIL OF THE CITY OF RENTON AS FOLLOWS: SECTION I Master Use Agreement: There is hereby given and granted unto Zayo Bandwidth Northwest, Inc., a Washinton corporation ("Grantee"), its affiliates, successors, and assignees for a period of fourteen (14) years from the effective date of this Master Use Agreement ("Agreement"), the rights, privileges, and authority to construct, operate, maintain, replace, alter, remove and repair one or more fiber optics communications facilities ("Facilities"), together with all equipment, support structures, conduit, cables and appurtenances of Grantees' systems, under, along, over, below and through certain public right-of-way and other public lands within the City of Renton ("City"). SECTION II Non -Exclusive Master Use Agreement This Agreement is granted upon the express condition that it shall not be deemed or held to be an exclusive agreement in, along, over, through, under, below or across any of said public rights -of -ways, public thoroughfares, sidewalks, and utility easements within the City of Renton. Such Agreement shall in no way prevent or prohibit the City of Renton or its tenants from using any of said roads, streets or other public or tenant properties or affect its jurisdiction over them or any part of them. The City of Renton retains full power to make all necessary changes, relocation's, repairs, maintenance, establishment, improvement, dedication of same as they may deem fit including the dedication, establishment, maintenance and improvement of all new rights -of -ways and thoroughfares and other public properties of every type and description. Grantee herein, agrees and covenants at its sole cost and expense to protect, support, temporarily disconnect, relocate or remove from any street any of its installations when so required by the City of Renton, upon not less then ninety (90) days prior written notice. Cause for the City of Renton to issue such notice include, but are not limit to, traffic conditions, public safety, street vacations, dedications of new rights -of -ways and the establishment and improvement thereof, freeway construction, change of establishment of street grade or the construction of any public improvement or structure by Government ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 agency acting in a Government capacity ("Redevelopment"). The Grantee shall in all such cases have the privilege to temporarily by-pass, in the authorized portion of the same street, upon approval by the City of Renton, any section of the system required to be temporarily disconnected or removed. If Grantee is unable to by-pass the affected Facilities during the City's Redevelopment, the City and Grantee shall reasonably cooperate to allow Grantee to operate a temporary facility on property owned, operated or controlled by City in the immediate vicinity, if possible. In the event Grantee must permanently relocate any Facilities due to such Redevelopment by the City, the City agrees to use best efforts to relocate Grantee's Facilities to an adjacent right of way area. Grantee may, after receipt of written notice requesting a permanent relocation of its Facilities, submit to the City written alternatives to such relocation. The City shall evaluate such alternatives and advise Grantee in writing if one or more of the alternatives are suitable to accommodate the work, which would otherwise necessitate relocation of the Facilities. If so requested by the City, Grantee shall submit additional relevant information to assist the City in making such evaluation. The City shall give each alternative proposed by the Grantee full and fair consideration, within a reasonable time so as to allow for the relocation work to be performed in a timely manner. In the event the City ultimately determines not less than fifteen (15) days from the commencement of such work by the City that there is no other reasonable alternative, Grantee shall relocate its Facilities as otherwise provided in this Section. SECTION III Location of Facilities: The location of facilities shall be underground or in accordance with all applicable Renton City Code ("RMC") provisions. SECTION IV Master Use/Franchise Construction Permit A Master Use/Franchise Construction permit application with three (3) sets of plans is required for each proposed project. All construction and installation of work wherever same crosses any of the public properties shall be done under the supervision of the duly authorized representative of the Planning/Building/Public Works Administrator, and Grantee shall timely submit unto the Public Works Administrator, prior to any such work, detailed plans and specifications of any proposed work. The location of any permit on public property in a street, Municipal Airport, or other public area shall be subject to approval of the Public Works Administrator or his authorized representative and such approval shall be provided in writing. The Grantee shall further inform the City of any time or date that the Grantee is performing work within the franchised area to allow the City to inspect such work. Any such inspection shall be coordinated among the parties. Work within City Streets shall be accomplished through boring rather than open trenching whenever reasonably feasible. New facilities installed within City rights -of -way shall be located outside of the street travel and parking lanes, whenever feasible and will not delay or increase the costs of the proposed facilities. The Master Use/Franchise Construction permit fee is stated in Section 18 of this Agreement. ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 2 SECTION V System Components: All components of the Grantee's system and other components of any communication line, to be placed within any street right-of-way, Municipal Airport, or other public property shall be designated, manufactured and installed in accordance and in full compliance with industry standards and applicable ordinances. Placement of conduit in street crossings shall be PVC schedule 80 or steel conduit. Schedule 40 PVC is acceptable in areas outside the roadway. SECTION VI Permanent Records The Grantee shall at all times keep full and complete plans, profiles and records showing the location, installed depth and size of all its installations and systems wherefore laid in the City and hereafter installed. Such plans and records shall be kept current by the Grantee. As -built plans and records shall be available to the City at all times upon request. A telephone contact number for requested plans shall be supplied to the City and kept current. SECTION VII Planning for Construction: During any period of construction, all surface structures, if any, shall be erected and used in such places and positions within said public right-of-way, and other public properties so as to interfere as little as possible with the free passage of traffic and the free use of adjoining property and tenants and Grantee shall at all times post and maintain proper barricades during such period of construction as required by the laws and statutes of the State of Washington. The Grantee shall avoid the use of arterials as designated by the City of Renton Arterial Street Map, defined by the Transportation Department and recently constructed or paved overlaid streets as much as possible. Specific route alignments are subject to approval by the City via the construction permitting process. All components of the system that may have been constructed and installed by the Grantee underground, within the City of Renton, shall be located in approved locations, buried and installed to a depth of not less than three feet and as otherwise provided for in the aforesaid Code, the laws of the State of Washington, and the ordinances of the City of Renton, now or hereafter in force, regulating such installations. Grantee shall establish and maintain at all times adequate facilities on the portion of each of the systems installed under the authority of this Agreement, and elsewhere on the system, to promptly localize operating troubles and to minimize the effects thereof, whether on City streets or on their use by the public. All truck, vehicles and equipment working in City right-of-way shall be marked with company logo, including company name and phone numbers. Approved traffic control plans shall be utilized for each installation when working in the public right-of-way. The Grantee shall be responsible for all work by their contractor, meeting the ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 3 requirements of the Manual on Uniform Traffic Control Devices (MUTCD) for all work within the public right-of-ways. The Grantee shall be responsible for notifying the Valley Communication Center for any street closures, a minimum of 24 hours prior to said closure. The Grantee shall subscribe to and maintain membership in the regional "One -Call" utility location service and shall promptly locate all of its lines upon request. SECTION VIII Restoration And Repair of Facilities Grantee, its successors and assignees, hereby agrees and covenants to promptly repair any damage to City or tenant property of every type and nature and all other City or tenant improvements caused by failure of Grantee's work during the life of this Agreement. Should it be necessary to make any excavation within any public right-of-way, in the laying, constructing, maintenance, removing, replacing, altering or repairing of all or any portion of the system, Grantee shall without delay and at Grantee's sole cost and expense, restore the surface of said right-of-way or other public or tenant property to at least the same condition immediately prior to any such installation and construction. In case of damage by the Grantee to said streets, avenues, roads, alleys, lanes, public places and ways, to the pavement, turnouts, gutters, ditches, walks, poles, pipes, plantings, rail, bridges, trestles, wharves or landings, and/or other appurtenances and improvements, the Grantee shall immediately repair all damage at its sole cost and expense. Grantee shall comply with all ordinances and regulations of the City of Renton, Washington, regarding such excavation and whenever deemed necessary by the Public Works Administrator shall be required to post a performance bond in favor of the City warranting, among other things, that such restoration work will be done promptly to a condition equal or better than the original condition and in a proper, workman like manner. Where concrete encased recorded monuments have been disturbed or displaced, Grantee shall restore the monument to federal state and local standards and specifications. All restoration of public streets, sidewalks and other amenities shall conform to current City of Renton Standard Specifications for Road, Bridge and Municipal Construction and the City of Renton's Trench Restoration Standards. As a condition of receiving the right to work within the public right-of-way, Grantee shall assume full responsibility for using materials and installation methods that are in full compliance with City Standards and shall verify this by submittal of documentation of materials and testing reports when requested by the City. All costs for performing on -site testing, such as Compaction tests, shall be borne by Grantee. SECTION IX Hold Harmless Agreement: The Grantee, its successors and assignees, agrees and covenants to indemnify and hold harmless the City of Renton from and against any and all liability, loss cost, damage, whether to persons or property, or expense of any type or nature to the extent it arises (collectively, "Claims") from any negligent act or omission or willful misconduct of Grantee, its successors and assigns arising from or connected to the Grantee's work under this Agreement, except to ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 4 the extent any such Claim is due to negligent act or omission or willful misconduct of City, its employees, agents or independent contractors. In addition, in case any suit or action is instituted against the City by reasons of any such damage or injury, City shall (i) cause written notice thereof to be given unto Grantee and (ii) give all reasonably requested assistance in defense or settlement of such claim at Grantee's expense, and (iii) grant Grantee the right to control the defense or settlement of such claims. SECTION X Liability Insurance Grantee shall maintain in full force and effect throughout the term of this Agreement, Comprehensive General Liability insurance coverage, inclusive of umbrella coverage, insuring both the Grantee and the City and its elected and appointed officers, officials, agents and employees as additionally insured as follows: 1. Comprehensive general liability insurance, inclusive of umbrella coverage, with limits not less than: a. Five million dollars ($5,000,000) for bodily injury or death to each person; b. Five million dollars ($5,000,000) for property damage resulting from any one accident, 2. Automobile liability insurance for owned, non -owned and hired vehicles, inclusive of umbrella coverage, with a limit of three million dollars ($3,000,000); 3. Worker's compensation with statutory limits and employer liability insurance, inclusive of umbrella coverage, with limits of not less than one million dollars ($1,000,000); and 4. Comprehensive form premises - Operations, explosions and collapse hazard, underground hazard and products completed hazard, inclusive of umbrella coverage, with limits of not less than three million dollars ($3,000,000). The Grantee shall submit to the City Clerk evidence that it has in full force and effect and shall keep in full force and effect during the life of the Agreement, comprehensive general liability insurance naming Grantee and the City of Renton as additional insured with coverage as stated above. It is hereby understood and agreed that this policy may not be canceled nor the intention not to renew be stated until thirty (30) days after receipt by the City, by registered mail, of a written notice addressed as required by such intent to cancel or not renew. After receipt by the City of said notice, and in no event later than ten (10) days prior to said cancellation, the Grantee shall obtain and furnish to the City replacement insurance policies meeting the requirements of this section. SECTION XI Revocation or Termination of Grant For the purpose of compelling compliance by the Grantee with all the terms and conditions of this Agreement and the maintenance of said system and facilities in good condition, City ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 5 retains the right to end and terminate and fully forfeit the Agreement herein granted, within thirty (30) days after written notice unto the Grantee, whenever the Grantee fails to comply with any of the material terms and conditions hereof, provided that Grantee has thirty (30) days in which to cure such noncompliance. Upon Grantee's failure to cure within the requisite time period, and if during the subsequent hearing the City Council revokes the franchise granted in this Agreement pursuant to RMC 5-19-8W or X, then the City shall have the right to require the Grantee to remove any and all of its systems within the City of Renton, all at the Grantee's cost and expense, and to promptly and timely restore all roads and other public properties to the condition immediately prior to any such forfeiture and termination. However, the Grantee may apply to the City for an extension of time to comply due to unavoidable delays and events beyond its control. Said application must be made at the earliest possible time and set forth in writing, the estimated time needed to comply. The extension of time will not be unreasonably'withheld as determined by the City. SECTION XII Reservation of Rights The Grantee acknowledges that its rights hereunder are subject to the legitimate rights of the police power of the City at all times and the City shall enforce general ordinances necessary to protect the safety and welfare of the public. The Grantee agrees to comply with all applicable general laws enacted by the City as long as such regulations do not increase the burden or impair the rights of the Agreement hereunder. The laying, construction, installation, maintenance and operation of the Facilities, system and facilities in connection therewith shall not preclude the City of Renton, its authorized agents, contractors and representatives from blasting, grading, excavating or doing other necessary or public works over, unto, abutting, or contiguous to Grantee's system provided, however, that Grantee shall be given ten (10) working days written notice of any such blasting, grading, or excavating so that the Grantee may take proper steps to protect its communication line and facilities. The parties agree that this Agreement is intended to satisfy the requirements of all applicable laws, administrative guidelines, rules, orders and ordinances (the "Law"). Accordingly, any provision of this Agreement or any local ordinance, which may conflict with or violate the Law, shall be invalid and unenforceable, whether occurring before or after the execution of this Agreement, it being the intention of the parties (i) to preserve their respective rights and remedies under the Law, and (ii) that the execution of this Agreement does not constitute a waiver of any rights or obligations by either party under the Law. The provisions of this Agreement shall be applied to all telecommunication providers in a competitively neutral and nondiscriminatory manner. SECTION XIII Damage, Injury or Loss Except for damage, injury or loss directly or proximately caused by the negligent, willful, intentional or malicious act or omission of the City of Renton, the Grantee shall have no ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 6 recourse whatsoever against the City of Renton for any loss cost, expense, or damage arising out of any provision or requirement of this Agreement or the enforcement thereof. This Agreement does not relieve the Grantee of any requirement of any City Ordinance, rule or regulation, or specification of the City, including but not limited to any requirement relating to street work, street excavation permits and fees therefore, or the use, removal or relocation of property and streets. No privilege nor exemption is granted or conferred unto the Grantee by this Agreement except those specifically prescribed herein, and any such privilege claimed under this Agreement by the Grantee in any street shall be subordinate to any prior lawful occupancy of the street or any subsequent improvement or installation therein. SECTION XIV Discontinued Agreement In the event the use of any permitted property is permanently discontinued by Grantee, or no permit has been obtained therefore upon expiration of this Agreement, or within thirty days after any termination of this Agreement, then the Grantee shall promptly remove from the streets and other properties all its facilities, other than any the City may permit to be temporarily or permanently abandoned. SECTION XV: Ownership Transfer This Agreement may not be assigned to a successor or assignees without the prior written consent of the City Council of the City of Renton, provided that Grantee may assign this Agreement to a parent or affiliate upon prior written notice to the City. The City will not delay or withhold written consent without just cause. For the purposes of this section, a merger or corporate reorganization of any entity controlling, controlled by or under common control with Grantee shall not be deemed a transfer of assignment. SECTION XVI Security Device The Grantee shall, within (10) ten days after the award of this Agreement, file with the City of Renton Public Works Department at all times thereafter maintain in full force and effect an acceptable security device or escrow account in duplicate effective for the entire term of this Agreement, and conditional that in the event Grantee shall fail to comply with any one or more of the provisions of this Agreement then there shall be recovered jointly and severally from the principal and surety of such security device or escrow account any damage suffered by the City as a result thereof, including the full amount of any compensation, indemnification or cost of removal or abandonment of properties herein above described, up to the full amount of the said bond, said condition to be a continuing obligations within the City of Renton or may have arisen from the acceptance of such Agreement by the Grantee or from its exercise of any such privilege herein granted. The security device or escrow account initially filed in accordance with the requirement of this Section shall be in the amount of Twenty Five Thousand Dollars 25 000 . In the event of substantial change in volume of street space occupied by permitted properties, the City may permit or may require a corresponding change in the amount of such ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 7 security device or escrow account. The bond form set forth as attachment "C " is deemed an approved security device. SECTION XVII System Expansion: Upon application to the City of Renton, by the Grantee, the City may authorize the Grantee to install, construct and/or retain in City streets additional system expansions, as contemplated in Section I hereof, in manner satisfactory to the Department of Public Works. Such additional installations shall be subject to all of the terms and conditions of this Master Use Agreement and to any such additional conditions as may be prescribed by the Department of Public Works as to any such additions. SECTION XVIII Telecommunication/Permit Fees: Any and all specified payments under this Agreement are to be paid in monthly installments in accordance with applicable City codes to the City of Renton. Master Use/Franchise Construction Permit Fee is $50.00. Inspection rate is billed at $40.00 an hour. Zayo Bandwith does hereby agree to pay a one time Administrative fee for Agreement preparation and processing of Five Thousand Dollars ($5,000.00). SECTION XIX Applicants Contacts: Any notices or information required to be given to parties under this Agreement may be sent to the following addresses unless otherwise directed. Zayo Bandwidth Northwest, Inc. Attn: General Counsel 901 Front Street, Suite 200 Louisville, CO 80027 SECTION XX Effective Date: Renton City Hall Attn: Jan Illian Development Services 6th Floor 1055 — S. Grady Way Renton, WA 98057 This Ordinance shall be in full force and effect from and after its passage, approval and five days after it legal publication as provided by law, and provided it has been duly accepted by Grantee as herein above provided. SECTION XXI Environmental Indemnification: Grantee shall not introduce or use any Hazardous Substance as defined by the United States Occupational Health and Safety Administration on the property where it constructs, operates, ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 8 maintains, replaces, alters, removes and repairs its Facilities ("Property"). Grantee shall be responsible for, and shall promptly conduct any investigation and remediation as required by any applicable environmental laws, all spills or other releases of any Hazardous Substance caused by Grantee, that have occurred or which may occur on the Property. Each party agrees to defend, indemnify and hold harmless the other from and against any and all administrative and judicial actions and rulings, claims, causes of action, demands and liability (collectively, "Claims") including, but not limited to, damages, costs, expenses, assessments, penalties, fines, losses, judgments and reasonable attorney fees that the indemnitee may suffer or incur due to the existence or discovery of any Hazardous Substances on the Property or the migration of any Hazardous Substance to other properties or the release of any Hazardous Substance into the environment (collectively, "Actions"), that relate to or arise from the indemnitor's activities on the Property. The indemnifications in this section specifically include, without limitation, costs incurred in connection with any investigation of site conditions or any cleanup, remedial, removal or restoration work required by any governmental authority. PASSED BY THE CITY COUNCIL this day of ' . 20 APPROVE BY THE MAYOR this APPROVED as to Form: Lawrence J. Warren, City Attorney Date of Publication: Bonnie Walton, City Clerk day of . 20 Denis Law, Mayor ACCEPTED BY GRANTEE, ZAYO BANDWIDTH NORTHWEST, INC. this day of 20 TITLE ' Signature Print Name ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 9 TITLE Signature Print Name ZAYO BANDWIDTH.DOC. UPDATED 10/9/2009 10 ZAYO BANDWIDTH INFORMATIONAL SHEET Zayo Bandwidth, LLC was formed in 2007 to provide bandwidth services to carriers, web -centric companies, public institutions and enterprises. Zayo Bandwidth, a wholly owned subsidiary of Zayo Group, owns and operates fiber optic networks totaling more than 19,000 fiber route miles. Zayo Bandwidth offers services in 129 markets spanning 23 states. Zayo Bandwidth's mission is to provide fiber -based bandwidth, responsive solutions and a strong and growing network. Zayo collaborates with carrier and enterprise customers with large and growing needs for bandwidth to develop fiber -based bandwidth solutions that meet their specific requirements. Zayo Bandwidth Northwest, Inc. was born with Zayo's acquisition of Northwest Telephone, Inc. Zayo Bandwidth Northwest, Inc., together with its subsidiaries and affiliates, is requesting a Master Use Agreement with the City of Renton. Zayo plans to lay about 1160 feet of conduit and pull fiber through a combination of open trenching and directional boring to place a two inch conduit from a vault owned by Electric Lightwave Inc. at South 2"d Street and Burnett Ave South to a vault owned by 360 Networks near 105 Wells Ave South. This conduit will complete a segment of Zayo's new longhaul connection from the carrier hotel in Seattle to Spokane. All restoration, as necessary, will be to the City of Renton specifications. TM BANDWIDTH , Your Network. Our Mission. ILEC LSOs ................................................................................................................. LSO CW Address City cRALIDXX 2115 N Government Way Coeur d'Alene MSCWIDXX 509 S Howard St Moscow PNTNOR56 237 SW 1ST ST Pendleton EWNCWAXA 1041 Eastmont Ave East Wenatchee KNWCWAXA 4916 W Clearwater Ave Kennewick PLMNWAXX 615 NE Oak Pullman QNCYWAXX 6th St & Columbia Ave Quincy WNTCWAXX 100 S Chelan Wenatchee YAKMWA02 8 S Second St Yakima additional lnfornrarPon on reverse... Zayo POPS / Interconnects ................................................................................................................. Address # of Demares City 408 Sherman 1 Coeur d'Alene 1620 Hawthorne St 1 Mead 124 E Third St 1 Moses Lake 22 Pasco Kalotus Rd 1 Pasco 141921 W Midway Substation Rd 1 Richland 48 BPA Substation Rd 1 Rock Island 2001 Sixth Ave 9 Seattle 422 W Riverside 2 Spokane 13294 Lincoln Park Rd 1 Wenatchee 250 East Penny Rd 1 Wenatchee additional Information on reverse... NETWORK STATS: 335 Total OmNet Buildings 9 On, -Net LSOs 11 Type 2 LSOs with Leased Entrance Facilities 44 Interconnects* 271 Additional Buildings (not shown) LEGEND: 10 = Zayo POP = LATA Boundary 0 = Interconnects Dark Fiber ® = ILEC LSO r = Under Deployment A = Type 2 LSOs State Border O = Wireless MSC r' = Zayo Fiber Aberdeen Portland Salem Yakima The Dalles ABrewster Spokane j""li " Coeur Wenat e / , D'alene Quinc Moses Lake Pullm,--' 1 Richland r oscoW:'_1 n, ennewick-P�sco/ Sunnyside, idaho Oregon Pendleton FIBER CWTTRUCTION -------5-_7ohin_St �0 t { I I t! '9� J.' !� �,• Ga @ �:. G, -a _; ,a�,� U915TA 1 aF 2ft. c- l 2nd S ast o 4`• Airport Way S nt, N d N1 3. S-Tobin St'- - t ° Rentpn }vp a S end St 2nd St - tt ! Jones Park ° _CI s 7 i!; - x i9001 1 f 1 (1991 I S 3rd S i i r m a/ --- - yg �. .ion 6th'St 1a SW'7th St S;7tli St g' I i I� � ®2009 NicwsoRCON®1005 NA4kp,mG/oriole eau,R�c, �"� _ •l, m r Renton ,2tt �� SCOPE OF PROJECT: m; j ! I f ;a3' Set a UM25TA handhole on the northwest comer of South 2nd Street and Wells Avenue South. From ! this location directional bore north, behind back edge of the sidewalk to the existing 360 Networks ! Ii 41 0 Burnett located of 105 Wells Avenue South. From this same vault location, turn and directional bore west, under back edge of sidewalk, to Burnett Avenue South. Trench around and then across I i�c0 Buett Avenue South to EU/Integro vault. This work is to place a 2' Schedule le 40 40 PVC conduit and 12 fiber cable between the 360 Networks vault and the ELI/Integra vou1L Leave a 160 foot fiber coil —!--i i in the new 25TA vault and 100 foot tails in the tie vaults. ravRQ•iN/arkk 1,57D' KEY: Q -EXISTING POLE -EXISTING ANCHOR O -EXISTING CONDUIT - AERIAL CABLE —• UNDRG. CABLE ►-� -CABLE CHANGE >4— NEW ANCHOR 4— - ATTACH TO ANCH.. -S/W ANCHOR —r -OVERHEAD GUY CjQ -FIBER STORAGE ABBREVIATIONS: TIP -TOP INSIDE POSITION TOP -TOP OUTSIDE POSITION BIP -BOTTOM INSIDE POSITION BOP -BOTTOM OUTSIDE POSITION EA -EXTENSION ARM PEA -PLACE EXTENSION ARM RS -ROAD SIDE FS -FIELD SIDE DE -DEADEND HOA -HEIGHT OF ATTACHMENT N W E S NO DATE REVISIONS BY1 AS BUILT I STATE: WA PROJECT: 360 NETWORKS TO ELI/INTEORA TIE scALE: NTS IXCEPT AS MAY OTHERWISE PROVIDED BY CONMCi THESE DRIWPIOS COUNTY: KING PHASE: 105 WELLS AVENUE SOUTH AND SPEOFIC1TIMYS SHALL REMAIN THE PROPERLY OF UYO CITY: RENTON JOB/: W O #: SHT 1 OF 4 BANDWIDTH, BOTH BEING ISSUED IN STRICT CONFIDENCE AND SHALL SECTION: 17/1 e NOT BE REPRODUCED. COPIED, OR USED FOR ANY PURPOSE WITHOUT FIELDED BY: R.F. OVIO. NAME SPECIFIC wRmEN PERMISSION TOWNSHIP: 23N DESIGNER:R.F. DATE: 09/13/09 OVERVIEW 1 RANGE: BE CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Dept/Div/Board.. Human Resources and Risk Management Staff Contact...... Nancy Carlson Subject: Contract with Pharmacy Benefit Manager for employee healthcare program Exhibits: Contract with EnvisionRX for Pharmacy Benefit Services AI#: For Agenda of: October 19, 2009 Agenda Status Consent .............. Public Hearing.. Correspondence.. Ordinance ............. Resolution............ Old Business........ New Business....... Study Sessions...... Information......... X Recommended Action: Approvals: Refer to Finance Committee Legal Dept......... X Finance Dept...... Other ............... Fiscal Impact: Expenditure Required... Transfer/Amendment....... Amount Budgeted....... $30,240 Revenue Generated......... Total Project Budget City Share Total Project.. SUMMARY OF ACTION: The contract is an agreement between the City and EnvisionRX, to administer the City's prescription drug benefit for employees and LEOFF 1 retirees. It is anticipated the cost savings over a three year period will be in excess of $140,000 per year. The expenditure required is $30,240 per year, which breaks down to $3.00 per employee per month for both actives and retirees. STAFF RECOMMENDATION: Approve the agreement beginning October 1, 2009, for an initial term of three years, for administration of the healthcare pharmacy benefit, and authorize the Mayor and City Clerk to sign the Agreement. Rentonnet/agnbill/ bh PHARMACY BENEFIT MANAGEMENT SERVICES AGREEMENT This Pharmacy Benefit Management Services Agreement (the "Agreement") is effective the lst day of October, 2009 (the "Effective Date") by and between Envision Pharmaceutical Services, Inc., an Ohio Corporation (hereinafter "Envision"), and City of Renton, Washington ("Plan Sponsor"). RECITALS WHEREAS, Envision is a, URAC accredited, Pharmacy Benefit Management (PBM) company primarily engaged in the business of providing comprehensive pharmacy benefit management services nationwide to various employers, unions, and health plans which sponsor or administer health benefit plans covering outpatient prescription medications; and WHEREAS, from its inception, Envision's business model is to provide its clients with transparency and full disclosure, and to pass -through to its clients one -hundred percent of all discounts and rebates received by Envision for prescription medications dispensed to its clients' covered individuals; and WHEREAS, Plan Sponsor sponsors and/or administers one or more health benefit plans providing coverage for prescription medications to Plan Sponsor's Covered Individuals; and WHEREAS, Plan Sponsor desires to engage Envision to provide pharmacy benefit management services in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained, Plan Sponsor and Envision hereby agree as follows: 1. DEFINITIONS 1.1 "Administrative Fee" means the amount that Envision charges Plan Sponsor for included services under this Agreement. Envision represents and warrants that the Administrative Fee and any fees for additional services set forth in Exhibit 1 are its sole compensation for the services rendered hereunder, and that it retains no revenues, directly or indirectly, from any other source. 1.2 "Average Wholesale Price" or "AWP" shall mean the average wholesale price of a prescription medication in effect on the date the prescription was dispensed as listed by Medi- Span, or another applicable industry standard reference on which pricing hereunder is based, for the actual package size dispensed. 1.3 `Benefit Plan" means the group health plan, insurance plan, prescription drug plan, or other benefit plan sponsored or administered by Plan Sponsor that covers the cost of prescription medications for Covered Individuals. 1.4 "Benefit Specification Form". means the form that is completed by Plan Sponsor, in conjunction with Envision, which details the specifics of the Benefit Plan such as which \PBMSA (fhn080609)(0) 0 Envision Pharmaceutical Services, Inc. Page 1 of 20 prescription medications are covered by Plan Sponsor, any limitations or exclusions, the Benefit Plan's tier structure and Co -Payments, and any conditions associated with the specific services to be rendered by Envision under this Agreement (i.e. prior authorizations, drug therapy management, etc.). 1.5 "Brand Drug" means a drug where the Generic Indicator (GI) field in Medi-Span contains an "M" (co -branded product), an "N" (single source brand), or an "O" (multi -source brand). 1.6 "Co -Payment" means the amount of money (may be a fixed amount or percentage) a Covered Individual must pay to the Participating Pharmacy for each Covered Medication filled or refilled under this Agreement in accordance with the terms of the Benefit Plan. 1.7 "Covered Individual" means an Eligible Employee and each of such Eligible Employee's eligible dependents who are identified by Plan Sponsor on the Eligibility File as being entitled to receive Covered Medications under the Benefit Plan in accordance with this Agreement. 1.8 "Covered Medication" means a prescription drug, medication, or device that meets the requirements for coverage under the Benefit Plan, after applying all conditions and exclusions set forth therein, and which is dispensed by a Participating Pharmacy to a Covered Individual pursuant to a written prescription order or allowable refill. 1.9 "Eligible Employee" means an employee of Plan Sponsor on whose behalf Plan Sponsor has contracted with Envision to provide the services hereunder to such Employee and the Employee's eligible dependents. 1.10 "Eligibility File" means that electronic communication supplied to Envision by Plan Sponsor which identifies Covered Individuals along with other eligibility information necessary for Envision to provide PBM Services hereunder. Plan Sponsor acknowledges that eligibility begins on the first day the Covered Individual is reported by Plan Sponsor (or its designee) to be effective and continues through the last day the Covered Individual appears on the Eligibility File. 1.11 "Generic Drug" means a drug where the Generic Indicator (GI) field in Medi-Span contains a "Y" (generic). 1.12 "HIPAA" means the Health Insurance Portability and Accountability Act of 1996, as amended. 1.13 "Licensed Prescriber" means a licensed Doctor of Medicine (M.D.), Doctor of Osteopathy (D.O.), Doctor of Podiatry (D.P.M.), Doctor of Dentistry (D.D.S.), or other licensed health practitioner with independent prescribing authority in the state in which the dispensing pharmacy is located. 1.14 "Manufacturer Derived Revenue" means any discounts, rebates, pharmaceutical manufacturers administrative fees, and any other revenue received by Envision from \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 2 of 20 pharmaceutical manufacturers (whether as a result of the number of covered lives, other incentives or other amounts received) for Covered Medications dispensed to Covered Individuals. 1.15 "Maximum Allowable Cost" or "MAC" means the maximum unit ingredient cost payable by Plan Sponsor for a proprietary list of off -patent Brand Drugs which has been negotiated with Participating Pharmacies. The MAC list and associated drug prices are updated from time to time by Envision. Plan Sponsor will be charged the exact amount payable by Envision to Participating Pharmacies for the most current MAC list. 1.16 "Participating Pharmacy" means a pharmacy (including a designated mail order or specialty pharmacy) that has entered into a negotiated pricing agreement with Envision to dispense Covered Medications to Plan Sponsor's Covered Individuals. 1.17 "Plan Sponsor" means the entity (identified above as Plan Sponsor) that is financially responsible for the payment of Administrative Fees and Covered Medications dispensed to Covered Individuals hereunder. 1.18 "Point -of -Sale" means the location and time that a Covered Medication is dispensed to a Covered Individual, and the corresponding claim is submitted by the dispensing pharmacy for adjudication by Envision's on-line claims adjudication system. 1.19 "Preferred Drug List" (also known as the "Formulary") means Envision's published list of commonly prescribed medications which is made available to Participating Pharmacies, Licensed Prescribers, and Plan Sponsor for the purpose of guiding the prescribing and dispensing of Covered Medications. 1.20 "Specialty Drug" means those high cost biotech and other prescription drug products which require special ordering, handling and/or patient intervention. Specialty Drugs will be priced based on where the drug is dispensed (i.e. retail, mail order, or specialty pharmacy). 2. PBM SERVICES Envision shall perform the following pharmacy benefit management services ("PBM Services"): 2.1 Claims Processing: Envision shall accept, process, and adjudicate Claims for Covered Medications (i) submitted by Participating Pharmacies (via Envision's on-line electronic claims processing system in National Council for Prescription Drug Programs (NCPDP) formats); (ii) submitted by Covered Individuals as DMRs (as defined below); or (iii) received from third parties, such as Medicaid, for reimbursement by Plan Sponsor. Claims shall be checked for eligibility, benefit design, Co -Payments, and exclusions to determine which Claims are successfully processed, pended for prior authorization, or rejected for ineligibility or other factors in accordance with Plan Sponsor's specifications as set forth in Plan Sponsor's Benefit Specification Form (incorporated herein by this reference). For purposes of this Agreement, a Claim is an invoice or transaction (electronic or paper) for a Covered Medication dispensed to a Covered Individual that has been submitted to Envision by the dispensing pharmacy or a \PBMSA (frm08O6O9)(r2) C Envision Pharmaceutical Services, Inc. Page 3 of 20 Covered Individual (including transactions where the Covered Individual paid 100% of the cost). Claims that must be processed manually because they are (i) DMRs (as defined below) or (ii) claims received from third parties, such as Medicaid, for reimbursement by Plan Sponsor for ineligible payments, will incur a fee as set forth in Exhibit 1. 2.2 Pharmacy Network: Envision shall arrange for the dispensing of Covered Medications to Covered Individuals pursuant to contracts with Participating Pharmacies. Plan Sponsor understands and agrees that the network of Participating Pharmacies may change from time to time, including the mail order provider and/or specialty pharmaceuticals provider. The list of Participating Pharmacies is constantly updated to reflect any changes in the network, including pharmacy addresses and telephone numbers, and is accessible via Envision's website. Plan Sponsor acknowledges that (i) orders exceeding a thirty day supply from a retail pharmacy are not available at all Participating Pharmacies; (ii) Covered Medications shall not be dispensed to Covered Individuals without a prescription order by a Licensed Prescriber; and (iii) the availability of drugs are subject to market conditions and that Envision cannot, and does not, assure the availability of any drug from any Participating Pharmacy. 2.3 Drug Utilization Review (DUR) and Drug Thergpy Management 2.3.1 Concurrent DUR: Envision shall program system edits which are applied to Claims during the adjudication process to identify the following: duplicate prescriptions; over- utilization/refill too soon; under -utilization; drug interactions; pediatric warnings; geriatric warnings; acute/maintenance dosing; formulary compliance; therapeutic duplication; drug inferred health state; drugs exceeding maximum dose; drugs below minimum daily dosage, and other financial and cost limitations which are specified by Plan Sponsor in the Benefit Specification Form. Envision's computer system will provide the dispensing pharmacy with the appropriate messaging to advise the pharmacy of DUR issues. 2.3.2 Retrospective DUR: Envision shall review Claims retrospectively, as specified in the Benefit Specification Form, to determine the drug utilization patterns of Covered Individuals, and report the results of retrospective reviews to Plan Sponsor. Retrospective DUR reports may include, but are not limited to: review of narcotic use with multiple physicians and pharmacies by a member, high cost/high utilization of a particular drug class, or therapeutic appropriateness of drug for a particular disease state, and other agreed upon reports. 2.3.3 Drug Therapy Management (DTM) and other Clinical Programs: Envision shall offer clinical programs as set forth in Exhibit 3 in addition to other clinical services specified herein. 2.4 Prior Authorization: If Plan Sponsor has elected to receive prior authorization services from Envision, Envision shall perform prior authorization for prescription medications that have been specified by Plan Sponsor in the Benefit Specification Form to require prior approval before being dispensed. When performing Prior Authorization, Envision will defer to the j physician -patient relationship and the Licensed Prescriber's knowledge of the patient's medical condition. \PBMSA (frm08O6O9)(r2) m Envision Pharmaceutical Services, Inc. Page 4 of 20 2.5 Records: Envision shall maintain such business records at its offices in Twinsburg, Ohio, as may be required by applicable law or regulation, or as may be necessary to properly document the delivery of, and payment for, Covered Medications and the provision of services by Envision under this Agreement. 2.6 Preferred Drug List: Envision shall maintain and publish a Preferred Drug List to be used by Licensed Prescribers, Participating Pharmacies, and Covered Individuals. The Preferred Drug List has been developed by Envision's Pharmacy & Therapeutic Committee, in accordance with URAC standards and CMS guidelines using evidence -based evaluation criteria, and is modified from time to time as new medications and/or new clinical information becomes available. The Preferred Drug List is constantly updated to reflect any changes and is accessible via Envision's website. Any modifications to the Preferred Drug List desired by Plan Sponsor must be approved, in writing, by Envision and Plan Sponsor acknowledges that such modifications may affect yields in Manufacturer Derived Revenue. 2.7 Direct Member Reimbursement (DMR): Envision shall provide, via its website, a DMR form, for use by Covered Individuals. These forms will be used for Covered Individual self -pay reimbursements for amounts other than Co -Payments paid out for Covered Medications that have not otherwise been reimbursed by Plan Sponsor. Envision shall accept, process, and adjudicate DMR Claims within ten (10) business days of receipt of the claim form, but shall not be liable to reimburse a Covered Individual until Plan Sponsor provides funds for such purpose. 2.8 Reports: Envision shall provide Plan Sponsor with access to web -based report generator through which Plan Sponsor may create and download a variety of standard and customized reports. Envision shall provide training for a Plan Sponsor designated individual on the capabilities of Envision's web -based reporting program. Plan Sponsor represents that the designated individual has received training and has knowledge of the HIPAA privacy and security regulations. Any reports that are to be provided by Envision to Plan Sponsor without cost (other than those available from Envision's web -based reporting program) shall be mutually determined prior to the configuration of Plan Sponsor's Benefit Plan in Envision's computer system and shall be specified in the Benefit Specification Form. Plan Sponsor shall be charged a fee for any other reports requested by Plan Sponsor. 2.9 Identification Card: Envision shall provide Plan Sponsor with Envision approved identification cards ("ID Cards"), up to two per family, for distribution to Covered Individuals by Plan Sponsor. If requested by Plan Sponsor, Envision shall provide ID Cards directly to Covered Individuals at no additional cost, except for the cost of postage and handling. Additional ID Cards or replacement ID Cards (i.e. for lost or stolen ID Cards) will be provided at a cost as specified in Exhibit 1. Additional charges may apply for special graphic requests. 2.10 Distribution of Materials: Envision shall bulk ship ID Cards and other printed materials produced by Envision.to Plan Sponsor at no additional charge. If Plan Sponsor requests ID Cards or other printed materials to be mailed directly to Covered Individuals, Plan Sponsor shall reimburse Envision its costs of postage and handling. \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 5 of 20 2.11 Business Associate Agreement: Envision shall execute and comply with a Plan Sponsor supplied HIPAA Business Associate Agreement, attached as Exhibit 2. 2.12 Customer Service: Envision shall maintain and operate a Help Desk with toll -free customer service numbers adequately staffed with trained personnel 24 hours a day, 7 days a week, 365 days a year, for the use of Plan Sponsor, Covered Individuals, Licensed Prescribers, and Participating Pharmacies. 2.13 Generic Substitution: Unless otherwise specified by Plan Sponsor in the Benefit Specification Form, Generic Drugs will be dispensed whenever possible. If a prescription is written for a Generic Drug, a Participating Pharmacy will dispense a Generic Drug consistent with the order of the Licensed Prescriber. If a prescription is written for a Brand Drug, and state law allows the substitution of a Generic Drug, a Participating Pharmacy may substitute a Generic Drug. 2.14 Pass -Through of Discounts: Envision shall use its best efforts to negotiate (on behalf of Envision's collective clientele) discounts with Participating Pharmacies. Envision shall pass through to Plan Sponsor one hundred percent (100%) of all negotiated Participating Pharmacy discounts. Envision will charge Plan Sponsor for Covered Medications dispensed to Covered Individuals at Envision's cost. 2.15 Pass -Through of Manufacturer Derived Revenue 2.15.1 Manufacturer Derived Revenue: Envision shall use its best efforts to negotiate (on behalf of Envision's collective clientele) Manufacturer Derived Revenue for Brand Drugs and to include such rebated Brand Drugs on the Preferred Drug List in consultation with Envision's Pharmacy & Therapeutics Committee. Envision shall pass through to Plan Sponsor one hundred percent (100%) of all negotiated Manufacturer Derived Revenue payable from pharmaceutical manufacturers by adjusting Plan Sponsor's cost of Covered Medications at the Point -of -Sale (unless otherwise specified herein). Specifically, the amount charged to Plan Sponsor by Envision (through the invoices provided under Section 4.3) for each Claim shall be the net price of the Covered Medication after applying applicable credits for expected Manufacturer Derived Revenue. (Plan Sponsor acknowledges that if Covered Individuals pay a percentage of the drug cost (co-insurance) under the Benefit Plan, a proportional amount of the rebate will be passed on to the Covered Individual at the Point -of -Sale.) Any unexpected Manufacturer Derived Revenue related to Plan Sponsor's Claims which is subsequently collected by Envision (i.e. market share rebates), shall be paid to Plan Sponsor upon receipt by Envision. Envision shall have no obligation to reduce Brand Drug costs on drugs for which Envision does not have a current manufacturer contract for Manufacturer Derived Revenue. 2.15.2 Revenue Yields: Plan Sponsor acknowledges that its yield of Manufacturer Derived Revenue is dependent on certain factors including, without limitation, the following: (i) Plan Sponsor's adherence to Envision's Preferred Drug List; (ii) the structure of Plan Sponsor's Benefit Plan; and (iii) the drug utilization patterns of Plan Sponsor's Covered Individuals. Notwithstanding anything herein to the contrary, Envision shall not be liable to Plan Sponsor for rebate yields that are lower than expected if (i) Plan Sponsor does not adhere to the Envision \PBMSA (frm080609)(0) 0 Envision Pharmaceutical Services, Inc. Page 6 of 20 Preferred Drug List; (ii) Plan Sponsor makes a material change to the Benefit Plan; (iii) Plan Sponsor's Benefit Plan does not meet the conditions for rebates of pharmaceutical manufacturer contracts; (iv) there is a significant change in the drug utilization patterns of the Covered Individuals; (v) loss of rebates due to manufacturer drug patent expirations; (vi) changes in pharmaceutical manufacturer rebate contracting terms or policies; or (vii) any governmental regulation, ruling, or guidance that impacts Envision's ability to maintain current rebate yields. Plan Sponsor further agrees that it shall not, at any time, submit Claims which have been transmitted to Envision to another PBM or carrier for the collection of Manufacturer Derived Revenue or create a situation which would cause a manufacturer to decline payments to Envision. 2.16 Medicare Part D Services: Envision shall provide certain Medicare Part D or Retiree Drug Subsidy (RDS) services if included under an addendum to this Agreement. 2.17 Additional Services: Any services to be rendered, under this Agreement which are not included in the Administrative Fee shall be itemized in the Exhibits and Addendums hereto along with any associated costs or charges. 3. PLAN SPONSOR RESPONSIBILITIES 3.1 Eli ibili Data: Plan Sponsor shall provide Envision (either directly or through an authorized third parry administrator) with an Eligibility File, at least monthly, in the HIPAA 834 standard transaction code set format, or such other format as has been previously agreed to by Envision. Plan Sponsor shall provide timely eligibility updates (for example, additions, terminations, change of address or personal information, etc.) to ensure accurate determination of the eligibility status of Covered Individuals. Plan Sponsor acknowledges and agrees that (i) Envision provides such eligibility data to the Participating Pharmacies and understands that Envision and Participating Pharmacies will act in reliance upon the accuracy of data received from Plan Sponsor; (ii) Envision will continue to rely on the information provided by Plan Sponsor until Envision receives notice that such information has changed; and (iii) Envision shall not be liable to Plan Sponsor for any claims or expense resulting from the provision by Plan Sponsor (or its designee) of inaccurate, erroneous, or untimely information. In addition, if Envision must create or update the Covered Individual eligibility file by manually entering employee data, Plan Sponsor will be charged a data entry fee as specified in Exhibit 1. In lieu of the Eligibility File, Plan Sponsor may provide eligibility information by updating Envision's eligibility system directly (except for the initial Eligibility File, which must be provided to Envision during the initial implementation), provided Plan Sponsor continues to meet Envision's conditions and specifications for direct eligibility updates. 3.2 Benefit Plan: Plan Sponsor shall provide Envision with complete information concerning the Benefit Plan. Plan Sponsor understands and agrees that Envision shall rely on the terms and conditions provided by Plan Sponsor ' on the Benefit Specification Form. The Benefit Specification Form may be changed from time to time by Plan Sponsor; provided, however, that Plan Sponsor changes must be communicated to Envision, in writing, at least thirty (30) days before any such change shall be implemented. The most recent executed Benefit Specification Form shall supersede any prior dated form. Plan Sponsor shall have sole authority to determine \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 7 of 20 the terms of the Benefit Plan and the coverage of benefits thereunder, however, Plan Sponsor understands and agrees that any change in the Benefit Plan (e.g. mandatory generic program, coverage of over-the-counter drugs or medications, etc.) may affect yields in Manufacturer Derived Revenue and average drug pricing, and that Envision will not be liable to Plan Sponsor for a reduction of such yields or increase in pricing which result from any change in the Benefit Plan. 3.3 Payment: Plan Sponsor shall timely pay, or cause its designee to timely pay, Envision for services rendered hereunder in accordance with Section 4 below and Exhibit 1. 3.4 Cooperation: Plan Sponsor shall provide cooperation and support to Envision to ensure all services described hereunder are provided in a timely, responsible, and professional manner. 4. TERMS OF PAYMENT 4.1 Pricing and Fees: Envision and Plan Sponsor agree that pricing for PBM Services shall be as set forth in Exhibit 1 hereto, as may be amended in writing from time to time. Plan Sponsor acknowledges that (i) Exhibit 1 has been reviewed and approved by Plan Sponsor; (ii) the fees and prices specified in Exhibit 1 are conditioned upon Plan Sponsor's use of Participating Pharmacies; (iii) the fees and prices specified in Exhibit 1 are subject to modification after the Initial Term of this Agreement and/or upon a material change in the negotiated discounts with Participating Pharmacies. Envision shall provide Plan Sponsor with at least 180 days prior written notice before implementing any changes in the fee and prices specified in Exhibit 1. If Plan Sponsor does not agree with the revised fees and prices, Plan Sponsor may terminate this Agreement with 90 days prior written notice. 4.2 Medicaid Reimbursement: If the negotiated prices reflected in this Agreement has any effect on the level of reimbursement Participating Pharmacies receive from any state Medicaid (Title XIX) Program under such state's law governing pharmaceutical discounts, the pricing set forth in Exhibit 1 of this Agreement will be adjusted so that this Agreement does not adversely affect the level of reimbursement Participating Pharmacies receive from the Medicaid Program in such state. 4.3 Payments for Claims: For each Covered Medication dispensed, Plan Sponsor agrees to reimburse Envision in accordance with this Section 4.3 and Exhibit 1, less applicable Co - Payments payable by Covered Individuals under the Benefit Plan. Envision shall provide Plan Sponsor with an invoice of payable Claims twice each month and Plan Sponsor shall pay Envision's invoices within ten (10) calendar days from receipt of said invoices. Nothing herein shall obligate Envision to pay Participating Pharmacies if Plan Sponsor fails to timely pay Envision as required under this Agreement. Plan Sponsor understands and agrees that Envision cannot obligate Participating Pharmacies to dispense any Covered Medications without receiving payment and that the provision of services hereunder may be suspended until any unpaid balance is received. In the event services are suspended hereunder, Envision may, as a condition of continuing to perform services under this Agreement, require Plan Sponsor to deposit with Envision a reasonable amount to ensure the timely payment of future invoices. Notwithstanding anything herein to the contrary, Plan Sponsor shall be and remain responsible for the payment of \PBMSA (frm080609)(r2) © Envision Pharmaceutical Services, Inc. Page 8 of 20 all invoices for Covered Medications dispensed to Covered Individuals, along with any associated Co -payments not timely paid by Covered Individuals, and dispensing fees and taxes. 4.4 Payment of Administrative Fee: Plan Sponsor agrees to pay Envision's Administrative Fee by the last day of each month for the next month's services. The Administrative Fee is calculated by multiplying the number of Eligible Employees who are active at any time during the then ending month (as reflected in the Envision claims processing system), by the Administrative Fee amount set forth in Exhibit 1. 4.5 Fees for Additional Services and Miscellaneous Expenses: Plan Sponsor agrees to reimburse Envision for Additional Services and miscellaneous expenses (e.g. postage) specified under Additional Fees and Expenses in Exhibit 1 hereunder, within ten (10) days of receipt of an invoice. 4.6 Untimely Pam: Plan Sponsor agrees that, in the event it fails to pay Envision any amounts due hereunder within the time period specified above, it shall pay Envision, in addition to such unpaid amounts, interest at a rate of eighteen percent (18%) per annum on the out- standing balance (or, if lower, the rate of interest permitted under the law of Plan Sponsor's state of domicile.) 4.7 Retroactive Disenrollment: Retroactive termination or disenrollment of a group, Eligible Employee, or Covered Individual shall not release Plan Sponsor of its obligation to pay Claims incurred, at any time, on behalf of such Covered Individual, or Administrative Fees due to Envision for such Covered Individual during any period for which services were renderable hereunder based on the then current eligibility. 4.8 Taxes: Any sales or use taxes for Covered Medications sold to Covered Individuals shall be charged, collected, and paid to state and local taxing authorities by the dispensing pharmacy. Plan Sponsor shall reimburse Envision or the dispensing pharmacy for taxes paid as part of the reimbursement for Claims. 4.9 Financial Audit b Plan Sponsor: Plan Sponsor, at its sole expense, may audit Envision's records of Claims paid by Plan Sponsor annually. Envision shall make available to Plan Sponsor's auditor, any and all financial records containing Plan Sponsor's information and such other records as reasonably necessary for auditor to confirm that the amounts paid by Plan Sponsor are the cost to Envision on the day the Covered Medication was dispensed. Plan Sponsor agrees to not use as its auditors, any person or entity which, in the sole discretion of Envision, is a competitor of Envision, a pharmaceutical manufacturer representative, or any other person or entity which has a conflict of interest with Envision. Plan Sponsor understands that Envision's contracts with pharmaceutical manufacturers, Participating Pharmacies, and other third parties may contain non -disclosure provisions, and hereby agrees to comply with such non- disclosure provisions. Plan Sponsor's auditor shall execute a conflicts of interest disclosure and confidentiality agreement with Envision prior to the audit. Audits shall only be made during normal business hours following thirty (30) days written notice, be conducted without undue interference to Envision's business activity, and in accordance with reasonable audit practices. Plan Sponsor's auditor may inspect Envision's contracts with Participating Pharmacies and \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 9 of 20 pharmaceutical manufacturers at Envision's offices only, and no copies of such contracts may be removed from Envision's offices. 4.10 Financial Audit by Envision: Envision may, at reasonable intervals, request Plan Sponsor to provide records for Envision's inspection which provide support for the information contained in the Eligibility File. If warranted, Envision may, at its own expense, inspect and audit, or cause to be inspected and audited, once annually, the books and records of Plan Sponsor directly relating to the existence and number of Covered Individuals, and payment of invoices. 5. TERM AND TERMINATION 5.1 Term: This Agreement shall commence on the Effective Date and remain in full force and effect for an initial term of three (3) years ("Initial Term") unless earlier terminated as provided herein. Upon the expiration of the Initial Term, and each subsequent renewal term, this Agreement shall renew automatically for an additional term of one year; unless, at least ninety (90) days prior to the end of such term, either party hereto notifies the other, in writing, of its intent that the Agreement terminate at the end of the current term. 5.2 Termination: This Agreement may be terminated as follows: 5.2.1 For Cause: By either party hereto in the event the other party breaches any of its material obligations hereunder; provided, however, that the defaulting party shall have thirty (30) days to correct such breach after written notice is given by such non -breaching party specifying the alleged breach; 5.2.2 Insolvency: By either party hereto in the event the other party (i) is adjudicated insolvent, under state and/or federal regulation, or makes an assignment for the benefit of creditors; (ii) files or has filed against it, or has an entry of an order for relief against it, in any voluntary or involuntary proceeding under any bankruptcy, insolvency, reorganization or receivership law, or seeks relief as therein allowed, which filing or order shall not have been vacated within sixty (60) calendar days from the entry thereof; (iii) has a receiver appointed for all or a substantial portion of its property and such appointment shall not be discharged or vacated within sixty (60) calendar days of the date thereof; (iv) is subject to custody, attachment or sequestration by a court of competent jurisdiction that has assumed of all or a significant portion of its property; or (v) ceases to do business or otherwise terminates its business operations, is declared insolvent or seeks protection under any bankruptcy, receivership, trust deed, creditors arrangement or similar proceeding; 5.2.3 Failure to Pay: By Envision, upon reasonable notice, in the event Plan Sponsor fails to pay Envision according to terms in Exhibit 1. Plan Sponsor understands that, if Plan Sponsor has not paid within seven (7) days written notice by Envision, Envision may notify Participating Pharmacies that Plan Sponsor has not timely pay amounts due for Claims. 5.3 Notices: All notices required in this Section 5 shall be reasonably specific concerning the cause for termination and shall specify the effective date and time of termination. \PBMSA (frm080609)(r2) © Envision Pharmaceutical Services, Inc. Page 10 of 20 5.4 Effect of Termination: Termination of this Agreement for any reason shall not release any parry hereto from obligations incurred under this Agreement prior to the date of termination. All services required to be performed under the terms of this Agreement shall be provided through the effective date of termination. 6. CONFIDENTIAL INFORMATION 6.1 Confidentiality: Except as otherwise stated herein or required by law, neither party hereto shall disclose any information of, or concerning the other party which has either been provided by one parry to the other or obtained by a parry in connection with this Agreement (including this Agreement and the terms of this Agreement) or related to the services rendered under this Agreement, all of which information is deemed confidential information. All data, information, and knowledge supplied by a parry hereto shall be used by the other parry exclusively for the purposes of performing this Agreement. Upon termination of this Agreement, each parry shall return to the other party, all confidential information provided including, without limitation, all copies and electronic magnetic versions thereof. Notwithstanding any of the foregoing to the contrary, "confidential information" shall not include any information which was known by a parry prior to receiving it from the other party, or that becomes rightfully known to a parry from a third party under no obligation to maintain its confidentiality, or that becomes publicly known through no violation of this Agreement. Envision acknowledges that Plan Sponsor is a governmental entity and, therefore, to the extent this Agreement is a public record, as that term is defined in Washington law, Plan Sponsor may comply with state law regarding public records disclosure and retention. Compliance with such requirements shall not constitute a breach of this Section 6. 6.2 Protected Health Information: Plan Sponsor will have access to Protected Health Information (PHI) (as defined by HIPAA) contained in reports provided by Envision or accessed by Plan Sponsor via Envision's website. Plan Sponsor agrees, for itself and its employees, that PHI shall not be used for any impermissible purpose, including, without limitation, the use of PHI for disciplinary or discriminatory purposes, and any user names and passwords assigned to designated individuals shall not be shared with non -designated individuals. 7. INDEMNIFICATION 7.1 Limited Indemnification by Envision: Envision hereby agrees to indemnify, hold harmless, and defend Plan Sponsor and its employees, officers, directors, trustees, shareholders, and agents from and against any and all liabilities, actions, claims, damages, costs, losses and expenses (including without limitation, reasonable costs of investigation and attorneys' fees) caused by or arising out of (i) any act or omission by Envision in the performance of the services provided under this Agreement; or (ii) any breach of any representation, covenant, or other agreement of Envision contained in this Agreement. 7.2 Limited Indemnification by Plan Sponsor: Plan Sponsor hereby agrees to indemnify, hold harmless, and defend Envision, the Participating Pharmacies, and their respective employees, officers, directors, shareholders, affiliates and agents from and against any and all liabilities, actions, claims, damages, costs, losses and expenses (including without limitation, \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 11 of 20 reasonable costs of investigation and attorneys' fees) caused by or arising out of (i) the provision by Plan Sponsor or its designee of erroneous information; or (ii) Plan Sponsor's failure to comply with state or federal law in the operation of its Benefit Plan. 7.3 Survival: This Section 7 shall survive the expiration or termination of this Agreement for any reason. 8. DISPUTE RESOLUTION Any controversy, claim or dispute arising out of or relating to this Agreement or the breach thereof, whether in tort or in contract, in law or in equity, shall be exclusively settled by binding arbitration in accordance with the commercial rules of the American Arbitration Association then in effect. The arbitration shall be conducted in King County, Washington. 9. RELATIONSHIP WITH CONTRACTED PHARMACIES Plan Sponsor acknowledges that Envision is neither an operator of pharmacies nor exercises control over the professional judgment used by any pharmacist when dispensing drugs or medications to Covered Individuals. Nothing in this Agreement shall be construed to require a Participating Pharmacy to dispense any Covered Medication to anyone if, in the pharmacist's professional judgment, such drug or medication should not be dispensed. Plan Sponsor further agrees that it shall hold harmless Envision from any claim arising from the dispensing of drugs by any pharmacy. 10. GENERAL 10.1 Legal Status: Nothing in this Agreement shall be deemed to confer upon Envision (i) the status of fiduciary as defined in either the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), or the Americans with Disabilities Act, as amended ("ADA" ), except to extent, in the performance of its obligations under this Agreement, Envision exercises actual discretionary control over the property of Plan Sponsor; (ii) any liability for the terms or validity of the Benefit Plan; or (iii) any liability for disclosing or reporting information regarding the Benefit Plan or changes in the Benefit Plan (e.g., calculation of Co -Payments, deductibles; or creditable coverage) as may be required by law to be disclosed to governmental agencies or Covered Individuals. 10.2 Independent Contractors: Envision and Plan Sponsor are independent contractors. Neither party hereto, nor any of its respective employees, shall be construed to be the employee or representative of the other, or liable for any acts of omission or commission on the part of the other. 10.3 Exclusivitv: During the term of this Agreement, Envision shall be the sole provider of PBM Services to Plan Sponsor, including, without limitation, the exclusive contractor of rebates with pharmaceutical manufacturers for Plan Sponsor's Claims. \PBMSA (frm08O6O9)(r2) 0 Envision Pharmaceutical Services, Inc. Page 12 of 20 10.4 Assignment: Except as follows, this Agreement may not be assigned by either party hereto without the express written consent of the other party, which may not be unreasonably withheld. Envision may assign this Agreement to a controlled subsidiary company or a controlling parent company. 10.5 Binding Effect: This Agreement and the exhibits and schedules attached hereto shall be binding upon and inure to the benefit of the respective parties hereto and their respective successors and assigns. Plan Sponsor's obligations hereunder are intended to inure to the benefit of and be enforceable by the Participating Pharmacies. 10.6 Intellectual Property: Each party hereto reserves the right to and control of the use of their names, symbols, trademarks or service marks presently existing or hereafter established, and no party may use any names, symbols, trademarks or service marks of any other party without the owner's written consent. 10.7 Waiver: Neither the failure nor any delay on the part of either party hereto to exercise any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof, or the exercise of any other right, power or privilege. In the event any party hereto should waive any breach of any provision of this Agreement, it will not be deemed or construed as a waiver of any other breach of the same or different provision. 10.8 Severability: The invalidity or non -enforceability of any term or provision of this Agreement shall in no way affect the validity or enforceability of any other term or provision. 10.9 Chance in Law or Market Conditions: If any law, regulation, or market condition now existing or subsequently occurring (e.g. Medi-Span or another applicable industry standard reference on which pricing hereunder is based, changes the methodology for determining drug price in a way that materially changes the pricing or economics of the Agreement) affects the ability of either party hereto to carry out any obligation hereunder (a "Material Change'), Envision and Plan Sponsor shall renegotiate the affected terms of this Agreement, in good faith, to preserve, to the extent possible, the relative positions of the parties that existed prior to such Material Change. Either party may notify the other party of a Material Change. If a successful renegotiation is not achieved within thirty (30) days after notification of a Material Change, any failure of the affected party to meet its obligations hereunder due to the effect of such Material Change shall not be deemed to be a breach of this Agreement; however, if continuation of the Agreement without modification is in violation of any law or regulation, or makes it impracticable for the affected party to meet its obligations hereunder, either party may terminate this Agreement with sixty (60) days prior written notice. Plan Sponsor acknowledges that, due to the change in published Average Wholesale Prices by Medi-Span on September 26, 2009, as a result of the settlement reached in the FDB/McKesson lawsuit, Envision will adjust the discount calculation for affected drugs beginning September 26, 2009 as necessary to maintain overall equivalent pricing for covered drugs. The exact adjustment factor may vary from drug to drug and from pharmacy to pharmacy. However, the adjustment factor applied will be disclosed to the client and Envision will continue to pass -through to the client the actual negotiated charge of the dispensing pharmacy without any mark-up or spread by Envision. \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 13 of 20 10.10 Headings: The section or paragraph headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 10.11 Entire Agreement: This Agreement shall constitute the entire agreement between Envision and Plan Sponsor with respect to the subject matter herein and supersede any prior understanding or agreements of any kind preceding this Agreement with respect to such subject matter. Any modification or amendment to this Agreement, or additional obligation assumed by Envision or Plan Sponsor in connection with this Agreement, shall be binding only if evidenced in a writing signed by both parties hereto. No term or provision of this Agreement shall establish a precedent for any term or provision in any other agreement. 10.12 Acceptance of Offer: Notwithstanding anything herein to the contrary, this Agreement shall not be binding upon the parties hereto unless and until the Agreement is signed and executed by a duly authorized officer of each of the parties. The signing of this Agreement by Plan Sponsor constitutes an offer only until the same has been accepted by Envision. 10.13 Choice of Law: This Agreement shall be construed, interpreted, and governed according to the laws of the State of Washington, except to the extent such laws are preempted by applicable Federal law. 10.14 Notices: Any notice required to be sent by one parry hereto to the other under this Agreement shall be in writing and may be sent to the other party by mail, courier, e-mail, and/or telefax at the address set forth on the signature page below; provided, however, that it shall be the burden of the sending parry to establish that the receiving parry, in fact, received the notice. 10.15 Representations: Each signatory named below represents and warrants that he or she has (i) read this Agreement, Exhibits, and other attachments, and fully understands and agrees to the content therein; (ii) entered into this Agreement voluntarily; (iii) not transferred or assigned or otherwise conveyed in any manner or form any of the rights, obligations or claims which are the subject matter of this Agreement; and (iv) the full power and authority to execute this Agreement. Each party hereto further represents and warrants that (i) it has no undisclosed conflicts of interest and (ii) entering into this Agreement for PBM Services is not in violation of any other agreement. Plan Sponsor further represents that it maintains, and shall continue to maintain throughout the term of this Agreement, any and all licenses, governmental authority, or other authorization required to operate an entity of its type. [SIGNATURE PAGE FOLLOWS] \PBMSA (fm080609)(0) C Envision Pharmaceutical Services, Inc. Page 14 of 20 IN WITNESS WHEREOF, Envision and Plan Sponsor have executed this Agreement as of the Effective Date above. For ENVISION: By: U Print Name & Title Address: 2181 East Aurora Road Twinsburg, OH 44087 PH: 330-405-8080 FX: 330-405-8081 For PLAN SPONSOR: USA Print Name & Title Address: 1055 S. Grady Way Renton, WA 98057 PH: FX: FEIN: \PBMSA (frm080609)(0) 0 Envision Pharmaceutical Services, Inc. Page 15 of 20 EXHIBIT 1 PRICING AND FEES Administrative Fee $3.00 Per Eligible Employee Per Month (PEPM) Drug Costs and Dispensing Fees A,B Plan Sponsor pays the best negotiated price or, if lower, the dispensing pharmacy's Usual and Customary (U&C) price: Retail Pharmacies (30 Days' Supply) For Brand Drugs, the estimated annual average price is AWP minus 15.5% (including U&C) plus a dispensing fee of $2.00. For Generic Drugs - • If on the MAC list, Plan Sponsor pays the MAC price plus a dispensing fee of $2.25; or • if not on the MAC list, the estimated annual average price is AWP minus 25% plus a dispensing fee of $2.10. • Average annual overall generic discount is AWP minus 68%. Mail Order Pharmacy — Costco Pharmacy For Brand Drugs, Plan Sponsor pays an estimated annual average price of AWP less 22% with no dispensing fee. For Generic Drugs - • on the MAC list, Plan Sponsor pays the MAC price with no dispensing fee; or • if not on the MAC list, the estimated annual average is AWP minus 56% with no dispensing fee (except for newly approved Generic Drugs within the first 180 days of release, in which case the price will be an estimated annual average of AWP minus 25% with no dispensing fee); • or $6.49, if higher than above. Specially Pharmacy - Medmark Specialty Pharmacy • (See Price Sheet for Selected Vendor as Exhibit 1-A) A Plan Sponsor pays Envision's calculated price (plus applicable dispensing fees) for Covered Medications dispensed by the Participating Pharmacy to Covered Individuals on the date the prescription was dispensed for the actual package size dispensed. B Discounts shown are effective prior to September 26"', 2009. Due to the change in published Average Wholesale Prices by Medi-Span on September 26, 2009, as a result of the settlement reached in the FDB/McKesson lawsuit, Envision will adjust the discount calculation for affected drugs beginning September 26, 2009 as necessary to maintain overall equivalent pricing for covered drugs. \PBMSA (frm0806O9)(r2) © Envision Pharmaceutical Services, Inc. Page 16 of 20 Additional Fees and Miscellaneous Expenses 1. Option of mailing by Envision of initial ID Cards directly to Covered Individuals Actual cost of postage and handling 2. Replacement by Envision of lost or stolen ID Cards $ 1. 00 per card plus cost ofpost4ge 3. Manual Claims Processing and Direct Member Reimbursements (DMRs) $1.50 per Claim processed 4. Option of mailing by Envision of program related materials directly to Covered Individuals Actual cost of postage and handling 5. Manually create or update eligibility file $ 1.00 per Covered Individual data entry 6. Ad Hoc Computer or Report Programming $150.00 per hour \PBMSA (frm08O6O9)(12) 0 Envision Pharmaceutical Services, Inc. Page 17 of 20 EXHIBIT 2 BUSINESS ASSOCIATE AGREEMENT (To be supplied by Plan Sponsor) \PBMSA (frm08O6O9)(r2) 0 Envision Pharmaceutical Services, Inc. Page 18 of 20 BUSINESS ASSOCIATE AGREEMENT This BUSINESS ASSOCIATE AGREEMENT (the "Agreement") is entered into this 1st day of <month>, <year> (the "Effective Date"), by and between Envision Pharmaceutical Services, Inc. ("Business Associate") and City of Renton ("Plan Sponsor'), each referred to individually herein as a "Party" or collectively as the "Parties". RECITALS A. Plan Sponsor sponsors a health benefit plan that provides coverage for prescription medications and supplies to covered individuals. Plan Sponsor has entered into a Pharmacy Benefits Management Services Agreement ("Pharmacy Agreement") with Business Associate to provide certain administrative services ("Services") to, or on behalf of, Plan Sponsor. B. In order for Business Associate to provide Services to Plan Sponsor, Plan Sponsor may disclose certain Protected Health Information ("PHI") (as defined in Article 1 of this Agreement) of Plan Sponsor's members to Business Associate and anticipates that Business Associate will create or receive PHI on behalf of Plan Sponsor. C. The Parties also anticipate that Business Associate will be required to create, receive, maintain, or transmit ePHI (as defined in Article 1 of this Agreement) on behalf of Plan Sponsor in order to provide Services to Plan Sponsor. D. Business Associate desires to provide the satisfactory assurances required by HIPAA to Plan Sponsor and further define the rights and responsibilities of the Parties under HIPAA for the exchange of PHI, including ePHI. NOW, THEREFORE, the Parties, in consideration of the mutual agreements herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, do hereby agree as follows: Article 1: Definitions For the purposes of this Agreement, the following defined terms shall have the following definitions. Except as otherwise stated herein, the defined terms used in this Agreement shall have the meanings given them under the Health Insurance Portability and Accountability Act of 1996 and the regulations thereunder, including any amendments thereto ("HIPAA"). 1.1 "Compliance Date" shall mean April 14, 2004 with regard to Subpart E of 45 C.F.R. Part 164 (regarding the privacy of PHI, otherwise known as the "HIPAA Privacy Standards") and April 20, 2006 with regard to Subpart C of 45 C.F.R. Part 164 (regarding the security of ePHI, otherwise known as the "HIPAA Security Standards"). \BAA (client) 06-02-08 1.2 "Designated Record Set" shall have the meaning prescribed to it in the HIPAA Standards. 1.3 "Electronic Media" shall have the meaning prescribed to it in the HIPAA Standards. 1.4 "Electronic Protected Health Care Information" ("ePHI") shall mean PHI that is transmitted or maintained in Electronic Media. 1.5 "HHS" shall mean the U. S. Department of Health and Human Services. 1.6 "HIPAA Standards" shall mean the standards for privacy and security of Individually Identifiable Health Information found at 45 C.F.R. Parts 160 and 164. 1.7 "Individual" shall have the same meaning as the term "individual" in the HIPAA Standards and shall include a person who qualifies as a personal representative in accordance with the HIPAA Standards. 1.8 "Individually Identifiable Health Information" shall have the meaning prescribed to it in the HIPAA Standards. 1.9 "Protected Health Information" ("PHI") shall have the meaning prescribed to it in the HIPAA Standards, limited to Individually Identifiable Health Information transmitted or maintained in any form or medium that Business Associate creates or receives from or on behalf of Plan Sponsor. 1.10 "Required by Law" shall have the same meaning as the term "required bylaw" in the HIPAA Standards. 1.11 "Secretary" shall mean the Secretary of HHS or his or her designee. Article 2: Business Associate Use and Disclosure of PHI and ePHI 2.1 Purpose. Business Associate's acquisition, use, creation, retention, or disclosure of PHI and/or ePHI shall be solely in furtherance of and performance of the Services for the Plan Sponsor. 2.2 Receipt and Use of PHI. Performance of the Services requires that Business Associate receive and use PHI obtained from or on behalf of Plan Sponsor, or that Business Associate create, receive, maintain, or transmit ePHI on behalf of Plan Sponsor. To perform these Services, Business Associate may use or disclose PHI provided such use or disclosure would not violate the HIPAA Standards if done by Plan Sponsor. However, Business Associate may use PHI internally to carry out its legal responsibilities and for its proper management, internal auditing, and administration, and at the request of Plan Sponsor, to provide data aggregation services to Plan Sponsor as permitted by the HIPAA Standards. \BAA (client) 06-02-08 2 2.3 Disclosure of PHI. Satisfactory completion of the Services by Business Associate may require that Business Associate disclose PHI to agents or subcontractors of Business Associate. Business Associate may disclose PHI to third parties with which it contracts to assist in providing Services, and to its agents to carry out Business Associate's legal responsibilities, for proper management, internal auditing, and administration, only if (a) Business Associate obtains reasonable assurances from such third parties or agents that the PHI will be held by them confidentially and used or further disclosed only as Required by Law or for the purpose for which it was disclosed to them, (b) such third parties or agents agree to implement reasonable and appropriate safeguards to protect the confidentiality, integrity, and availability of ePHI, and (c) such third parties or agents agree to notify Business Associate of any instance of which they are aware that the confidentiality of the information has been breached or that a security incident has occurred. Notwithstanding the foregoing, Business Associate will be permitted to exchange PHI or ePHI freely with any Business Associates of the Plan Sponsor with which the Plan Sponsor has executed a Business Associate Agreement/Addendum. 2.4 Obligation for Use and Disclosure of PHI. All PHI does not fall within the definition of ePHI and therefore all PHI is not subject to the HIPAA Security Standards. However, all ePHI falls within the meaning of PHI and is therefore subject to the HIPAA Privacy Standards in the same manner as other PHI. 2.5 Satisfactory Assurances. After the Compliance Dates (as defined in Article 1 of this Agreement), Plan Sponsor may not transfer or transmit PHI or ePHI to Business Associate or permit Business Associate to create, receive, or transmit PHI or ePHI on behalf of Plan Sponsor without satisfactory assurances from Business Associate that it will appropriately safeguard the information. Article 3: Duties of Business Associate 3.1. Limitations on Use of PHI. Business Associate shall not use PHI except as permitted or required by this Agreement or as Required by Law. Business Associate shall only use PHI in a manner that is consistent with the HIPAA Standards. 3.2. Limitations on Disclosure of PHI. Business Associate shall not disclose PHI except as permitted or required by this Agreement or as Required by Law. Business Associate shall only disclose PHI in a manner that is consistent with the HIPAA Standards. 3.3. Safeguarding PHI and ePHI. Business Associate shall use appropriate safeguards to prevent the use or disclosure of PHI other than as permitted by this Agreement. Business Associate shall implement administrative, physical, and technical safeguards that reasonably and appropriately protect the confidentiality, integrity, and availability of the ePHI that it creates, receives, maintains, or transmits on behalf of Plan Sponsor as required by the HIPAA Standards. \BAA (client) 06-02-08 3 3.4. Third Party Agreements. Business Associate may need to enter into agreements with third parties, including agents or subcontractors, in order to satisfy its obligations to Plan Sponsor. Should Business Associate disclose to these third parties or agents any PHI received from Plan Sponsor, Business Associate shall require such third parties or agents to agree, in writing, to (a) be bound by the same restrictions and conditions that apply to Business Associate under this Agreement, and (b) implement reasonable and appropriate administrative, technical and physical safeguards to protect PHI and the confidentiality, integrity and availability of ePHI. Notwithstanding the foregoing, Business Associate will be permitted to exchange PHI or ePHI freely with any Business Associates of the Plan Sponsor with which the Plan Sponsor has executed a Business Associate Agreement/Addendum. 3.5. Reporting of Unauthorized Uses and Disclosures and Security Incidents. If Business Associate becomes aware of any use or disclosure of PHI by Business Associate, its employees, subcontractors, or agents that is not permitted by this Agreement, or a security incident involving ePHI, Business Associate shall immediately report such violation, in writing, to Plan Sponsor within five (5) business days of making a determination that such a use, disclosure or incident has occurred. 3.6. Mitigation of Disclosure of PHI. Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a use or disclosure of PHI by Business Associate in violation of the requirements of this Agreement. 3.7. Access to PHI. Within ten (10) business days of Plan Sponsor's written request, Business Associate shall provide Plan Sponsor or an Individual who is the subject of the PHI with access to PHI in Business Associate's possession, if Business Associate's information consists of a Designated Record Set in order for Plan Sponsor to comply with 45 C.F.R. § 164.524. 3.8. Availability of PHI for Amendment. The parties acknowledge that the HIPAA Standards permit an Individual who is the subject of PHI to request certain amendments of his or her records. Within ten (10) business days of Plan Sponsor's written request, Business Associate shall make PHI contained in a Designated Record Set in Business Associate's possession available for amendment and shall incorporate any amendments in accordance with 45 C.F.R. § 164.526. 3.9. Accounting of Disclosures. Business Associate agrees to document disclosures of PHI and to make available, within ten (10) business days of Plan Sponsor's written request, information to Plan Sponsor concerning Business Associate's disclosure of PHI for which Plan Sponsor needs to provide an Individual with an accounting of disclosures as required by 45 C.F.R. § 164.528. Should an accounting of the PHI of a particular Individual be requested more than once in \BAA (client) 06-02-08 4 any twelve (12) month period, Business Associate may charge Plan Sponsor a reasonable, cost -based fee. 3.10. Availability of Books and Records. For purposes of determining compliance of Plan Sponsor with the HIPAA Standards, Business Associate agrees to make available to the Secretary its internal policies and procedures, books and records relating to the use and disclosure of PHI received from, or created or received by Business Associate on behalf of, Plan Sponsor. 3.11. Return of PHI at Termination. Upon termination of the Service Agreement, Business Associate, as well as any agents or subcontractors of Business Associate, shall, where feasible, return to Plan Sponsor, or with the permission of Plan Sponsor, destroy all PHI received from or created or received by Business Associate on behalf of, Plan Sponsor and shall retain no copies of PHI. When return or destruction is not feasible, the duties of Business Associate under this Agreement shall be extended to protect the PHI retained by Business Associate. Business Associate agrees to limit further uses and disclosures of the information retained to those purposes that made the return or destruction infeasible. Article 4: Term and Termination 4.1. Basic Term. The term of this Agreement shall commence on the effective date stated above and shall terminate when all of the PHI and ePHI provided by Plan Sponsor to Business Associate, or created or received by Business Associate on behalf of Plan Sponsor, is returned or, at the discretion of Plan Sponsor, is destroyed, in accordance with Section 3.11 of this Agreement. 4.2. Termination for Breach. In the event Business Associate breaches or otherwise defaults under this Agreement, Plan Sponsor may provide an opportunity for Business Associate to cure the breach within thirty (30) days, or immediately terminate this Agreement by providing written notice to Business Associate; provided, however, all of the obligations imposed on Business Associate hereunder shall continue. Article 5: Miscellaneous 5.1. Regulatory References. A reference in this Agreement to a section in the HIPAA Standards means the section as is currently in effect or as hereafter amended. 5.2. Amendment. The Parties to this Agreement agree to take such action to amend this Agreement from time to time as is necessary for Plan Sponsor to comply with the requirements of HIPAA. 5.3. Prior Business Associate Agreements or Addenda. This Agreement shall supersede any prior Business Associate Agreement or Addenda between the Business Associate and Plan Sponsor. \BAA (client) 06-02-08 5 5.4. Survival. The respective rights and obligations of Business Associate under Section 3.11 of this Agreement shall survive the termination of this Agreement. 5.5. Interpretation. Any ambiguity in this Agreement shall be resolved to permit Plan Sponsor to comply with the HIPAA Standards. IN WITNESS WHEREOF, the parties have, by their duly authorized representatives, executed this Agreement to be effective as of the date first above written. PLAN SPONSOR: M Print Name and Tile BUSINESS ASSOCIATE: Print Name and Title \BAA (client) 06-02-08 6 EXHIBIT 3 PROSPECTIVE - CONCURRENT — RETROSPECTIVE DRUG UTILIZATION REVIEW (DUR) The following Prospective DUR checks are performed before medication is dispensed, resulting in a message to the pharmacy: 1. Therapeutic duplication: If a Covered Individual is being treated with two or more similar drugs or drugs in the same therapeutic class. 2. Drug drug interactions: If two or more of the drugs that are actively being used by the Covered Individual have the potential in combination to produce an untoward or adverse effect. 3. Over -utilization: This is, most commonly, too -early refills, which can also be a check on .increasingly faster refill periods over time. This can signal an abuse pattern developing. This can also be seen by pharmacists who enter an unreasonably short day's supply indicator (say a one month supply 30 tablets, and place 5 days in the days supply field). 4. Under -utilization: If either the dosage of the drug is too small given the apparent circumstances or the Covered Individual is refilling the prescription at intervals that suggest that the Covered Individual is not taking the prescription according to the current physician's instructions. This is determined when the refill days are greater than the days supply. 5. Higher: If the dosage prescribed is higher than the maximum effective dosage as indicated by the medical literature 6. Drug_pregnana: Determines if a harmful drug is being dispensed to a pregnant woman. Claims history of prenatal vitamins prescribed within 120 days for women who is pregnant. 7. Low dose: If the dosage prescribed is lower than the commonly accepted lowest accepted dosage for that particular drug. 8. Drug age: Most commonly used for children and the elderly, this looks at the date of birth and the drug prescribed to analyze the appropriateness of the drugs prescribed. 9. Drug -disease: When the disease states are known and the drugs prescribed don't appear appropriate for that disease state. 10. Duration of Therapy: When the drug prescribed is acute, but the duration and dosage is extended to what would be a much longer time than warranted. An example would be antibiotics prescribed for a month with 5 refills at a full dosage level. The clinical modules listed below are the eleven major Concurrent DUR modules that Envision uses during the processing of prescription drug claims. All of the clinical modules use NCPDP standard conflict codes: \PBMSA (frm08O6O9)(r2) m Envision Pharmaceutical Services, Inc. Page 19 of 20 • Duplicate Therapy - Drugs from the same therapeutic class • Drug -Drug Interaction - Combinations of drugs with potential for severe adverse affects • Low Dose Alert - Drug doses that exceed the suggested minimum daily dose • High Dose Alert - Drug doses that exceed the suggested maximum daily dose • Excessive Utilization ("Too Soon Refill" Monitoring) - A refill sent before a defined percentage of the previous fill is used • Geriatric Precautions - Drugs inappropriate for patients over the age of 60 • Pediatric Precautions - Drugs inappropriate for pediatric patients based on age • Drug Duplication - Drugs containing the same ingredients • Drug -Gender Precaution - Drugs not indicated for a specific gender • Drug -Disease Precaution — Inappropriate drugs inappropriate • Under -Utilization (Late Refill Monitoring) (LR) - Refill for a chronic maintenance drug requested at an interval longer than directed by the prescriber In Retrospective DUR, patient medical charts or computerized records are screened to determine whether the drug therapy met approved criteria and aids prescribers in improving care for their patients, individually and within groups of patients, such as those with diabetes, asthma, or high blood pressure. Common types of Retrospective DUR Offered by Envision: • Therapeutic appropriateness • Over and underutilization • Appropriate generic use • Therapeutic duplication • Drug -disease contraindications • Drug -drug interactions • Incorrect drug dosage • Inappropriate duration of treatment • Clinical abuse/misuse \PBMSA (frm080609)(r2) 0 Envision Pharmaceutical Services, Inc. Page 20 of 20 CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Public Works Department Dept/Div/Board.. Administration Division Staff Contact...... Gregg Zimmerman, Ext. 7311 Subject: Authorization to fund the purchase of a mobile sand bagging machine to make sand bags for protecting assets in the event of flooding of the Green River. Exhibits: Product information Recommended Action: Council Concur Al #: For Agenda of: October 19, 2009 Agenda Status Consent .............. Public Hearing.. Correspondence.. Ordinance ............. Resolution............ Old Business........ New Business....... Study Sessions...... Information......... Approvals: Legal Dept......... Finance Dept...... Other ............... Fiscal Impact: 501 Expenditure Required... $29,000 Transfer/Amendmen t Amount Budgeted...... $0 Revenue Generated Total Project Budget: $29,000 City Share Total Project $29,000 SUMMARY OF ACTION: The proposal allocates $29,000 in the Equipment Replacement Fund (Fund 501) to purchase a mobile sand bagging machine that will be placed in a location to enable the machine to make sand bags for protecting both public and private property from the elevated risk of Green River flooding. This equipment will be able to produce as many as 3,200 sand bags per hour to be used to protect public facilities and infrastructure. Alternately, Renton residents or businesses will be allowed to pick up and transport sand bags to protect private property. The Public Works Department has obtained phone bids, and the Megga Bagger MB-T2 (equipment sheet attached) was found to be the lowest priced mobile sand bagger that would perform the needed function. STAFF RECOMMENDATION: Allocate $29,000 in the Equipment Replacement Fund (Fund 501) to purchase a mobile sand bagging machine that will be used to make sand bags to protect both public and private assets from the elevated risk of Green River flooding. The budget amendment for this purchase will be included in the third quarter 2009 budget adjustment ordinance. X M Rentonnet/agnbill/ bh • 2 Person Station, • Feet and hands free gate operation • Electronic variable, speed and bag size controls • 3.75 cubic yard hopper • Trailer mounted. for easy transporting • Two 5 foot slide table • Adjustable stabilizer legs • Pneumatically controlled gate • Powder coated • Approximately 2,900 pounds bagladyinc.net • Dimensions: 9''/a" High. x 511 3/4" Wide x 15' 10 '/�" Long • 120 VAC hopper Nribrator • 12 HP Champion gas air compressor • 2;500 watt Fonda gas generator • Weather tight control panel and fittings to all circuits • Double chute with fully automatic or manual operation • All electronics Underwriter Laboratories approved • This machine is trailer integrated • Can produce a maximum of 3,200 bags per hour • Average output of approximately 2,000 bags per hour $257900 FOB Puyallup, WA 98372 P. (253) 770-8606 CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Public Works Department Dept/Div/Board.. Transportation Systems Division Staff Contact...... Jim Seitz, Transportation Planning and Programming Supervisor, extension 7245 Subject: Washington State Department of Transportation 2009 to 2011 Commute Trip Reduction (CTR) Funding Agreement Exhibits: Issue Paper Resolution Recommended Action: Council Concur Al #: For Agenda of: October 19, 2009 Agenda Status Consent .............. Public Hearing.. Correspondence.. Ordinance ............. Resolution............ Old Business........ New Business....... Study Sessions...... Information......... Approvals: Legal Dept......... Finance Dept...... Other ............... 12 Fiscal Impact: (Account Number 317.012135) Expenditure Required... Transfer/Amendment....... Amount Budgeted....... $65,000 (2009) Revenue Generated......... $88,939 (2009-2011) Total Project Budget City Share Total Project.. SUMMARY OF ACTION: The city implements a program in accordance with the state and local CTR laws to monitor Renton employers with CTR-affected worksites for progress and compliance. This law was enacted as part of the Washington State Clean Air Act to provide measures that would improve air quality and also manage congestion by encouraging the use of alternatives to single occupancy vehicle (SOV) commute travel through the use of incentives to employees at businesses with 100 or more employees arriving to work between 6:00 and 9:00 a.m. Funding provided by the State of Washington covers the expenses to implement state and local CTR laws. STAFF RECOMMENDATION: Authorize the Mayor and City Clerk to enter into the two-year agreement with the Washington State Department of Transportation for the implementation of the Citywide CTR Program in the amount of $88,939. C:\Documents and Settings\B%ItonEocal Settings\Temporary Intemet Files\Content.Outlook\X7DZYIJNA\Agnbi4_2009-2011_CTR_funding.doc PUBLIC WORKS DEPARTMENT p _ Cltyof M E M O R A N D U M DATE: October 19, 2009 TO: Randy Corman, Council President Members of the Renton City Council VIA: Denis Law, Mayor%ylu0� �. FROM: Gregg Zimmerma4'Pministrator STAFF CONTACT: Jim Seitz, Transportation Planning and Programming Supervisor, extension 7245 SUBJECT: Washington State Department of Transportation 2009 to 2011 Commute Trip Reduction (CTR) Funding Agreement ISSUE: Should the City of Renton enter into a two-year agreement with the Washington State Department of Transportation for the implementation of the Citywide Commute Trip Reduction (CTR) Program? RECOMMENDATION: Authorize the Mayor and City Clerk to enter into the two-year agreement with the Washington State Department of Transportation for the implementation of the Citywide CTR Program in the amount of $88,939. BACKGROUND: The City of Renton implements a program in accordance with the state and local CTR law to monitor Renton employers with CTR-affected worksites for progress and compliance. This law was enacted as part of the Washington State Clean Air Act to provide measures that would improve air quality and also manage congestion by encouraging the use of alternatives to single occupancy vehicle (SOV) commute travel through the use of incentives to employees at businesses with 100 or more employees arriving to work between 6:00 and 9:00 a.m. To support the state mandated CTR law, WSDOT historically has provided funding to jurisdictions with CTR-affected work sites. The amount of funding provided by the state Randy Corman, President Members of the Renton City Council Page 2 of 2 October 19, 2009 to the City of Renton has been static for the past few years. It is based on the number of worksites being monitored. Currently, there are 25 CTR-affected employer work sites in the City of Renton. The Transportation Systems Division 2010-2015 Transportation Improvement Program (Six -Year TIP) allocated $65,000 in 2010 and another $65,000 in 2011 for the Travel Demand Management (TDM) and CTR Program with $43,000 per year anticipated to come from WSDOT CTR funding (actual, per this contract, would be $44,469 per year) and $22,000 per year of city funds from the Business License Fee account. Attachment: Commute Trip Reduction Implementation Program, GCA6243 cc: Peter Hahn, Deputy Public Works Administrator —Transportation Nathan Jones, Transportation Planning Connie Brundage, Transportation Administrative Secretary H:\Division.s\TRANSPOR.TAT\PLANNING\Nathan lones\TDM\CTR\contracts\state\2009-2011_wsdot_ctr\issue_paper_2009-2011_CTR_funding.doc D�af�f Commute Trip Reduction Implementation Agreement Washington State Department of Contractor Transportation City of Renton 310 Maple Park Avenue SE 1055 South Grady Way PO Box 47387 Renton, WA 98055 Olympia, WA 98504-7387 Federal ID #: 91-6001271 Contact Person: KathyJohnston Contact Person: Nathan A. Jones Project Costs: Scope of Project: Carry out the State Funds $ 88,939 Project as described in Exhibit I, Project Contractor Funds $ Scope of Work Total Project Cost $ 88,939 Agreement Number: GCA6243 Term of Project: Service Area: July 1, 2009 through June 30, 2011 This AGREEMENT is entered into by the Washington State Department of Transportation, hereinafter referred to as "WSDOT" and the Contractor identified above, hereinafter referred to as "CONTRACTOR", and/or individually referred to as the "PARTY" and collectively referred to as the "PARTIES." WHEREAS, RCW 70.94.521 through RCW 70.94.555 establishes the requirements and parameters for Commute Trip Reduction programs, including the Growth and Transportation Efficiency Centers in Washington State; WHEREAS, the State of Washington in its Sessions Laws of 2009, chapter 470, Section 222(7) and (9), authorizes funding for Public Transportation and Commute Trip Reduction programs and other special proviso funding through the multi -modal transportation account as identified in the budget through its 2009-2011 biennial appropriations to WSDOT; and WHEREAS the WSDOT. Public Transportation Division is responsible for administering funds on behalf of the state legislature; NOW, THEREFORE, in consideration of terms, conditions, performances and mutual covenants herein set forth and the attached Exhibit I, "Project Scope of Work" and Exhibit II, "Project Progress Reports", which are both incorporated and made a part of this AGREEMENT, IT IS MUTUALLY AGREED AS FOLLOWS: Section 1 Purpose of Agreement The purpose of this AGREEMENT is for WSDOT to provide funding to the CONTRACTOR to be used solely for activities undertaken to fulfill, the requirements of RCW 70.94.521 through RCW 70.94.555, hereinafter known as the "Project". Page 1 of 11 GCA6243 Section 2 Scope of Work The CONTRACTOR agrees to perform all designated tasks of the Project under this AGREEMENT as described in Exhibit I, "Project Scope of Work", which by this reference is incorporated into this AGREEMENT as if fully set forth herein. Section 3 Term of Project The CONTRACTOR shall commence, perform and complete the Project within the time defined in the caption space header above titled "Term of Project" on this AGREEMENT regardless of the date of execution of this AGREEMENT, unless terminated as provided herein. The caption space header above entitled' "Term of Project" and all caption space headers above are by this reference incorporated into this AGREEMENT as if fully set forth herein. Section 4 Project Costs The total reimbursable cost to accomplish the Project Scope of Work shall not exceed the "State Funds" detailed in the caption space header above titled "Project Costs". The CONTRACTOR agrees to expend eligible "State Funds" together with any "Contractors Funds" identified above in the caption space header "Project Costs", in an amount sufficient to complete the Project as detailed in Exhibit 1, "Project Scope of Work". If at any time the CONTRACTOR becomes aware that the cost which it expects to incur in the performance of this AGREEMENT will differ from the amount indicated in the caption space titled "Project Costs" above, the CONTRACTOR shall notify WSDOT in writing within three (3) business days of making that determination. Section 5 Reimbursement and Payment Payment will be made by WSDOT on a reimbursable basis for actual costs and expenditures incurred while performing eligible direct and related indirect Project work during the Project period Payment is subject to the submission to and approval by WSDOT of properly prepared invoices accompanied by progress reports and financial summaries as required in Section 7 — Progress Reports. The CONTRACTOR must submit an invoice using either state form A-19 or a format approved by WSDOT. The CONTRACTOR may submit invoices, not more than once per month, during the course of this AGREEMENT. The CONTRACTOR shall submit a final invoice to WSDOT no later than July 15, 2011. Any invoice received after July 15, 2011 will not be eligible for reimbursement. Within thirty (30) days after receiving and approving the invoice, WSDOT shall remit payment to the CONTRACTOR. Section 6 Project Records The CONTRACTOR agrees to establish and maintain for the Project, either a separate set of accounts or, accounts within the framework of an established accounting system in order to sufficiently and properly reflect all eligible direct and related indirect Project costs incurred in the performance of this AGREEMENT. Such accounts are referred to herein collectively as the "Project Account". All costs claimed against the Project Account must be supported by properly executed payrolls, time records, invoices, Page 2 of 11 GCA6243 DFaft contracts, and payment vouchers evidencing in sufficient detail the nature and propriety of the costs claimed. Section 7 Progress Reports The CONTRACTOR shall submit either monthly or quarterly progress reports to WSDOT so that WSDOT may adequately and accurately assess the progress made under the terms of this AGREEMENT. The progress reports shall be prepared as prescribed by WSDOT on the forms provided in Exhibit II, "Project Progress Reports" and/or as provided and modified by WSDOT staff. Progress reports shall be submitted to WSDOT no later than forty-five (45) days from the end of each calendar quarter. Section 8 Audits, Inspections, and Records Retention WSDOT, the State Auditor, and any of their representatives, shall have full access to and the right to examine, during normal business hours and as often as they deem necessary, all of the CONTRACTOR's records with respect to all matters covered by this AGREEMENT. Such representatives shall be permitted to audit, examine and make excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, and other matters covered by this AGREEMENT. In order to facilitate any audits and inspections, the CONTRACTOR shall retain all documents, papers, accounting records, and other materials pertaining to this AGREEMENT for six (6) years from the date of completion of the Project or the Project final payment date. However, in case of audit or litigation extending past that six (6) years period, then the CONTRACTOR must retain all records until the audit or litigation is completed. The CONTRACTOR shall be responsible to assure that it, WSDOT, the State Auditor, and any of their representatives, retain comparable audit rights with respect to subcontractors to the CONTRACTOR within the scope of this AGREEMENT. Section 9 Agreement Modifications A. Either PARTY may request changes to this AGREEMENT, including changes in the Scope of Project. Such changes that are mutually agreed upon shall be incorporated as written amendments to this AGREEMENT. No variation or alteration of the terms of this AGREEMENT shall be valid unless made in writing and signed by authorized representatives of the PARTIES hereto. B. If an increase in funding by the funding source augments the CONTRACTOR's allocation of funding under this AGREEMENT, the CONTRACTOR and WSDOT agree to enter into an amendment to this AGREEMENT, providing for an appropriate change in the Scope of Project and/or the Project Cost in order to reflect any such increase in funding. C. If a reduction of funding by the funding source reduces the CONTRACTOR's allocation of funding under this AGREEMENT, the CONTRACTOR and WSDOT agree to enter into an amendment to this AGREEMENT providing for an appropriate change in the Scope of Project and/or the Project Cost in order to reflect any such reduction of funding. Page 3 of 11 GCA6243 Section 10 Recapture Provision In the event that the CONTRACTOR fails to expend State Funds in accordance with state law and/or the provisions of this AGREEMENT, WSDOT reserves the right to recapture State Funds in an amount equivalent to the extent of noncompliance. Such right of recapture shall exist for a period not to exceed three (3) years following termination or expiration of this AGREEMENT. The CONTRACTOR agrees to repay such State Funds under this recapture provision within thirty (30) days of demand. Section 11 Disputes A. If the PARTIES cannot resolve a dispute arising from the performance of this AGREEMENT by mutual agreement, the CONTRACTOR may submit a written detailed description of the dispute to the Public Transportation Division's Program Manager or the Program Manager's designee who will issue a written decision within ten calendar (10) days of receipt of the written description of the dispute. This decision shall be final and conclusive unless within ten (10) days from the date of CONTRACTOR's receipt of WSDOT's written decision, the CONTRACTOR mails or otherwise furnishes a written appeal to the Director of the Public Transportation Division or the Director's designee. In connection with any such appeal the CONTRACTOR shall be afforded an opportunity to offer material in support of its position. The CONTRACTOR's appeal shall be decided in writing within thirty (30) days of receipt of the appeal by the Director of the Public Transportation Division or the Director's designee. The decision shall be binding upon the CONTRACTOR and the CONTRACTOR shall abide by the decision. B. Performance During Dispute. Unless otherwise directed by WSDOT, the CONTRACTOR shall continue performance under this AGREEMENT while matters in dispute are being resolved. Section 12 Termination WSDOT, at its sole discretion, may suspend or terminate this AGREEMENT in whole, or in part, for the reasons following: A. The CONTRACTOR materially breaches, or fails to perform any of the requirements of this AGREEMENT and after fourteen (14) days written notice, has failed to cure the condition(s) causing that breach. Conditions of breach may include, but are not limited to: 1. Any action taken by the CONTRACTOR without WSDOT approval, which under the provisions of this AGREEMENT, required WSDOT approval; 2. Failure to perform in the manner called for under this AGREEMENT; or 3. Failure to comply with any provision of this AGREEMENT; B. The CONTRACTOR is prevented from proceeding with this AGREEMENT by reason of a temporary, preliminary, special, or permanent restraining order or injunction of a court of competent jurisdiction where the issuance of such order or injunction is primarily caused by the acts or omissions of persons or agencies other than the CONTRACTOR; C. The requisite state funding is reduced or becomes unavailable through failure of appropriation or otherwise; Page 4 of 11 GCA6243 Dr�a�C D. WSDOT determines that the continuation of the Project would not produce beneficial results commensurate with the further expenditure of funds; E. WSDOT, at its sole discretion, determines to accept a request made in writing by the CONTRACTOR to terminate this AGREEMENT in whole or in part; or F. WSDOT determines that suspension or termination is in the best interests of the state. If this AGREEMENT is terminated under subsections B, C, D, E, and/or F of this Section, the CONTRACTOR may be reimbursed only for actual, eligible direct and related indirect expenses incurred prior to the date of termination, and then only to the extent of awarded funds. If this AGREEMENT is terminated under subsection A of this Section, the WSDOT shall not be obligated to provide any additional reimbursement, and WSDOT shall retain all rights to seek recapture or damages from the CONTRACTOR. Section 13 Forbearance by WSDOT Not a Waiver Any forbearance by WSDOT in exercising any right or remedy hereunder, or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any such right or remedy. Section 14 Waiver In no event shall any WSDOT payment of grant funds to the CONTRACTOR constitute or be construed as a waiver by WSDOT of any CONTRACTOR breach, or default, and shall in no way impair or prejudice any right or remedy available to WSDOT with respect to any breach or default. In no event shall acceptance of any WSDOT payment of grant funds by the CONTRACTOR constitute or be construed as a waiver by CONTRACTOR of any WSDOT breach, or default which shall in no way impair or prejudice any right or remedy available to CONTRACTOR with respect to any breach or default. Section 15 WSDOT Advice The CONTRACTOR bears complete responsibility for the administration and success of the work as it is defined in this AGREEMENT and any amendments thereto. Although the CONTRACTOR may seek the advice of WSDOT, the offering of WSDOT advice shall not modify the CONTRACTOR's rights and obligations under this AGREEMENT and WSDOT shall not be held liable for any advice offered to the CONTRACTOR. Section 16 Limitation of Liability and Indemnification A. The CONTRACTOR shall indemnify and hold harmless WSDOT, its agents, employees, and officers and process and defend at its own expense any and all claims, demands, suits at law or equity, actions, penalties, losses, damages, or costs (hereinafter referred to collectively as "claims"), of whatsoever kind or nature brought against WSDOT arising out of, in connection with or incident to this AGREEMENT and/or the CONTRACTOR's performance or failure to perform any aspect of this AGREEMENT. This indemnity provision applies to all claims against WSDOT, its agents, employees and officers arising out of, in connection with or incident to the negligent acts or omissions of the CONTRACTOR, its agents, employees and officers. Provided, however, that nothing Page 5 of 11 GCA6243 herein shall require the CONTRACTOR to indemnify and hold harmless or defend the WSDOT, its agents, employees or officers to the extent that claims are caused by the negligent acts or omissions of the WSDOT, its agents, employees or officers. The indemnification and hold harmless provision shall survive termination of this AGREEMENT. B. The CONTRACTOR shall be deemed an independent contractor for all purposes, and the employees of the CONTRACTOR or its subcontractors and the employees thereof, shall not in any manner be deemed to be the employees of WSDOT. C. The CONTRACTOR specifically assumes potential liability for actions brought by CONTRACTOR's employees and/or subcontractors and solely for the purposes of this indemnification and defense, the CONTRACTOR specifically waives any immunity under the State Industrial Insurance Law, Title 51 Revised Code of Washington. D. In the event either the CONTRACTOR or WSDOT incurs attorney's fees, costs or other legal expenses to enforce the provisions of this section of this AGREEMENT against the other PARTY, all such fees, costs and expenses shall be recoverable by the prevailing PARTY. Section 17 Governing Law, Venue, and Process This AGREEMENT shall be construed and enforced in accordance with, and the validity and performance thereof shall be governed by the laws of the State of Washington. In the event that either PARTY deems it necessary to institute legal action or proceedings to enforce any right or obligation under this AGREEMENT, the PARTIES hereto agree that any such action shall be initiated in the Superior Court of the State of Washington situated in Thurston County. The CONTRACTOR hereby accepts service of process by registered mail consistent with RCW 4.28.080(1) or (2) as applicable. Each PARTY shall bear its own legal costs and expenses, including attorney fees, in any such litigation. Section 18 Compliance with Laws and Regulations The CONTRACTOR agrees to abide by all applicable state and federal laws and regulations, including, but not limited to, those concerning employment, equal opportunity employment, nondiscrimination assurances, Project record keeping necessary to evidence AGREEMENT compliance, and retention of all such records. The CONTRACTOR will adhere to all of the nondiscrimination provisions in Chapter 49.60 RCW. The CONTRACTOR will also comply with the Americans with Disabilities Act (ADA), Public Law -101-336, which provides comprehensive civil rights protection to individuals with disabilities in the areas of employment public accommodations, state and local government services and telecommunication. Section 19 Severability If any covenant or provision of this AGREEMENT shall be adjudged void, such adjudication shall not affect the validity or obligation of performance of any other covenant or provision, or part thereof, that in itself is valid if such remainder conforms to the terms and requirements of applicable law and the intent of this AGREEMENT. No Page 6 of 11 GCA6243 Dr�af�f controversy concerning any covenant or provision shall delay the performance of any other covenant or provision except as herein allowed. Section 20 Counterparts This AGREEMENT may be executed in several counterparts, each of which shall be deemed to be an original having identical legal effect. The CONTRACTOR does hereby ratify and adopt all statements, representations, warranties, covenants, and agreements and their supporting materials contained and/or mentioned in such executed counterpart, and does hereby accept State Funds and agrees to all of the terms and conditions thereof. Section 21 Execution This AGREEMENT is executed by the Director of the Public Transportation Division, State of Washington, Department of Transportation or the Director's designee, not as an individual incurring personal obligation and liability, but solely by, for, and on behalf of the State of Washington, Department of Transportation, in his/her capacity as Director of the Public Transportation Division. IN WITNESS WHEREOF, the PARTIES hereto have executed this AGREEMENT the day and year last signed below. WASIIINGTON STATE CONTRACTOR DEPARTMENT OF TRANSPORTATION By: Kathryn W. Taylor, Director, Public Transportation �im Print Name: Title: Who certifies proper authority to execute this AGREEMENT on behalf of the CONTRACTOR Date: Date: Approved as to form only: Susan Cruise Assistant Attorney General Date: July 17, 2009 Page 7 of 11 GCA6243 EXHIBIT 1 Project Scope of Work Commute Trip Reduction (CTR) 1. Scope of Work DF911 e A. Work Plan The CONTRACTOR agrees to submit to WSDOT a detailed administrative work plan no later than ninety (90) days after the affected date of this AGREEMENT. The work plan shall identify deliverables, schedule and the budget specific to tasks associated with this AGREEMENT and to include, at a minimum, the following required activities: 1. Notification of Requirements for Newly Affected Worksites 2. Review of Employer Program Reports 3. Administration of Surveys, 4. Review of Program Exemption Requests. The work plan shall also include other tasks as defined in approved and locally adopted CTR or GTEC plans for the implementation of the local CTR program. These may include, but are not limited to, employer training, incentives, promotion and marketing, and emergency ride home. In addition, the work plan shall identify specific or overall performance measures for each task and deliverable. This work plan must be approved in writing by the WSDOT Project Manager and signed by the CONTRACTOR, and shall be incorporated as a written amendment to the AGREEMENT. The work plan may be amended based on mutual written agreement between the WSDOT Project Manager and the CONTRACTOR. B. Work to be Performed The county or city, whichever applies, has enacted or will enact a Commute Trip Reduction (CTR) ordinance in compliance with RCW 70.94.521-.555. The CONTRACTOR agrees to implement a CTR program based on the approved administrative work plan and the draft or adopted local CTR plan and to comply with all provisions of the applicable county or city ordinance. C. Progress Reports and Invoices The CONTRACTOR agrees to submit to WSDOT quarterly progress reports, as specified by WSDOT in Section 7 — Progress Reports of the AGREEMENT, in Exhibit II, "Project Progress Report", and as integrated with the deliverables indentified in the administrative work plan, along with all invoices in accordance with Section 5 — Reimbursement and Payment of the AGREEMENT. The CONTRACTOR shall accurately and completely report local investments in its CTR/GTEC plans and programs, as part of its progress reports. All invoices shall be complete and accurately reflect actual state funded expenditures. The CONTRACTOR shall include a complete progress report quarterly. Page 8 of 11 GCA6243 D. Funding Distribution and Reporting The CONTRACTOR may distribute funds to local jurisdictions to include counties, cities, transit agencies, Transportation Management Associations, and Metropolitan Planning Organizations or other eligible organizations authorized to enter into agreements for the purposes of implementing CTR/GTEC plans and ordinances as authorized by RCW 70.94.527(5) and RCW 70.94.544. The CONTRACTOR shall submit to WSDOT within 30 days of the execution of any agreement between the CONTRACTOR and the CONTRACTOR's eligible contracting partner(s) as listed above: (a) a list of dollar amounts to be disbursed by the CONTRACTOR to its eligible contracting partner(s), or (b) a fund dispersion methodology. E. Implementation Plans The CONTRACTOR shall incorporate appropriate sections of the Project Scope of Work, as well as the approved Work Plan, in all agreements with eligible contracting partner(s), as necessary, to coordinate the development, implementation, and administration of the CTR/GTEC plans, and compliance with applicable ordinances. F. Appeals and Modifications The CONTRACTOR shall maintain an appeals process consistent with this AGREEMENT and applicable ordinances, and procedures contained in the Commute Trip Reduction Guidelines which may be obtained from WSDOT or found at http://www.wsdot.wa.gov/tdm/. G. Coordination with Regional Transportation Planning Organizations (RTPO) The CONTRACTOR shall coordinate the development and implementation of its CTR/GTEC plan and programs with the applicable regional transportation planning organization (RTPO). The CONTRACTOR agrees to notify the RTPO of any substantial changes to its plans and programs that could impact the success of the regional CTR plan. The CONTRACTOR agrees to provide information about the progress of its CTR/GTEC plan and programs to the RTPO upon request. H. Survey Coordination The CONTRACTOR agrees to coordinate with WSDOT and its contracting partners for baseline and subsequent program assessment surveys. I. Planning Data The CONTRACTOR agrees to provide WSDOT with the program goals established for newly affected worksites when they are established by the local jurisdiction. The CONTRACTOR agrees to provide WSDOT with updated program goals for affected worksites and jurisdictions as requested. These updates shall be submitted electronically in a format specified by WSDOT. J. Database Updates The CONTRACTOR agrees to provide WSDOT and the CONTRACTOR's contracting partners with updated lists of 'affected or participating worksites, employee transportation coordinators, and jurisdiction contacts, as requested. These updates will be submitted in a format specified by WSDOT. Page 9 of 11 GCA6243 Exhibit II Progress Report Commute Trip Reduction (CTR) Organization Submitting Report: Reporting Jurisdiction: Agreement (GCA) Number: Billing Period: Name: Phone: Fax: Email: Contact Information Executive Summary Prepare a brief narrative summary of activities during the period for which reimbursement is requested: Required Activities to Administer the CTR Program Notification of requirements for newly affected worksites: Review of employer program reports: Administration of surveys: Review of program exemption requests: Other activities: Employer Service Activities to implement CTR or GTEC plan Employer training/networking/support: Incentives: Promotion and Marketing: Emergency Ride Home: Other work plan deliverables: Page 10 of 11 GCA6243 D r a f. t Ex enditures This Period Fiscal Year Fiscal Year State CTR Fiscal Year (June 30) (June 30) Categories Funds Spent To Date State Estimate To Estimate to Since Last CTR Funds Date Local Date Other Report Spent Funds Spent on Funds Spent on CTR Activities I CTR Activities Required Activities: a. Notification of requirements for newly affected worksites b. Review of employer program reports c. Administration of surveys d. Review of program exemption requests e. Other activities Subtotal: $0.00 $0.00 $0.00 $0.00 Employer Service Activities: a. Employer training/networking/support b. Incentives c. Promotion and Marketing d. Emergency Ride Home e. Other work plan deliverables Subtotal: $0.00 $0.00 $0.00 $0.00 Total: $0.00 $0.00 $0.00 $0.00 Source of Local Funds Local Funds Spent (Estimate) Fiscal Year to Date Total Reported (Estimate) Fiscal Year to Date Total Local Funds: $0.00 $0.00 State CTR Funds Disbursed If your jurisdiction disbursed any state CTR funds reported above to other organizations or jurisdictions to implement the CTR program list those disbursements below. Jurisdiction/Organization Disbursed Since Last Report Total Disbursed Fiscal Year to Date Total Disbursement: $0.00 $0.00 Page 11 of 11 GCA6243 CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Public Works Dept/Div/Board: Utility Systems Division/ Surface Water Utility Staff Contact: Ron Straka (ext. 7248) Daniel Carey (ext. 7293) Al #: For Agenda of: October 19, 2009 Agenda Status Consent ............... X Public Hearing.... Subject: Final Pay Estimate — CAG-09-122, Correspondence... SWP-27-2057, Maplewood Creek and Madsen Creek Ordinance............ Sediment Basin Cleaning Project 2009 Resolution............ Old Business........ New Business....... Exhibits: Pay Estimate #4 Final Study Sessions..... Notice of Completion Information........... Recommended Action: Approvals: Council Concur Legal Dept......... Finance Dept...... X Other .................. Fiscal Impact: Expenditure Required... $994.04 Transfer/Amendment....... Amount Budgeted....... $185,000.00 Revenue Generated......... Total Project Budget $185,000.00 City Share Total Project.. SUMMARY OF ACTION: Kamins Construction started construction on the Maplewood Creek and Madsen Creek Sediment Basin Cleaning Project 2009 on July 31, 2009, and completed all work for the project on August 25, 2009. The original contract amount was $71,437.43 and the final contract amount is $76,072.06. The increase of $4,634.63 was due to increases in several bid item quantities and a change order to perform extra cleaning on the overflow channel for Maplewood Creek. The project is funded from the Surface Water Utility's 427 Fund Capital Improvement Program (CIP). The approved 2009 (CIP) budget for the Maplewood Creek Sediment Basin Cleaning is $95,000 (account # 427. 018.5960.0038.63/U65060), and for the Madsen Creek Sediment Basin Cleaning is $90,000 (account # 427. 018.5960.0038.63/U65050), for a total of $185,000 for both projects. The approved 2009 Surface Water Utility 427 Fund CIP budgets for the project has sufficient budget remaining to fund the Final Pay Estimate. STAFF RECOMMENDATION: Accept the Maplewood Creek and Madsen Creek Sediment Basin Cleaning Project 2009, approve the Final Pay Estimate of $994.04, and release the retainage of $3,473.61 after 60 days and after all the required releases from the state have been obtained. H:\File Sys\SWP - Surface Water Projects\SWP-27 - Surface Water Projects (CIP)\27-2057 MAPLEWOOD BASIN\2009 Pond Cleaning\5001 Final Payment\090928 FINAL-AgendaBill-Maplewood.doc\DWCtp TO: FINANCE DIRECTOR FROM: PUBLIC WORKS ADMINISTRATOR PO# 1810001662 fONTRACTOR: Kamins Construction )NTRACT NO. CAG-09-122 ESTIMATE NO. 4 FINAL PROJECT: Maplewood, Madsen Creek Sed. Basin Cleaning Project 2009 1. CONTRACTOR EARNINGS THIS ESTIMATE $907.80 2. SALES TAX @ 9.50% $86.24 3. TOTAL CONTRACT AMOUNT THIS ESTIMATE $994.04 4. EARNINGS PREVIOUSLY PAID CONTRACTOR $65,136.18 5. EARNINGS DUE CONTRACTOR THIS ESTIMATE $862.41 6. SUBTOTAL - CONTRACTOR PAYMENTS - $65,998.59 7. RETAINAGE ON PREVIOUS EARNINGS $3,42892 8. ** RETAINAGE ON, EARNINGS THIS ESTIMATE $45.39 9• SUBTOTAL - RETAINAGE $3,473.61 10. SALES TAX PREVIOUSLY PAID $6,513.62 11. SALES TAX DUE THIS ESTIMATE $86.24 12• SUBTOTAL - SALES TAX $6,599.86 * (95% x LINE 1) (RETAINAGE. 5%) GRAND TOTAL: $76,072.06 FINANCE DEPARTMENT ACTION: PAYMENT TO CONTRACTOR (Lines 5 and 11): ACCOUNT # 427,018,5950.0038.63.U65060 / F010 $474.32 # 4 FINAL 427 018.5950.0038.63.U65050 / F010 1474:33 . RETAINED AMOUNT (Line 8): ACCOUNT # 427:018:;5950;0038.63.U65060 / F010 427.0 18.5950.0038.63. U65050 / F010 CHARTER 116, LAWS OF 1965 CITY OF RENTON CERTIFICATION 1, THE UNDERSIGNED DO HEREBY CERTIFY UNDER PENALTY OF PERJURY, THAT THE MATERIALS HAVE BEEN FURNISHED, THE SERVICES RENDERED OR THE LABOR PERFORMED AS DESCRIBED HEREIN, AND THAT THE CLAIM IS A JUST, DUE AND UNPAID OBLIGATION AGAINST THE CITY OF RENTON, AND THAT I AM AUTHORIZED TO AUTHENTICA N ERTIFY TO SAID CLAIM Signed: / $22.69 # 4 FINAL $22.70 TOTAL THIS ESTIMATE: $948.65 $45.39 $994.04 I(? rsgol Printed On: 09/24/2009 City of Renton Public Works Department Page 1 Printed On: 09/24/2009 City of Renton Public Works Department Maplewood, Madsen Creek Sed. Basin Cleaning Project Project: 2009 Contract Number: CAG-09-122 Contractor: Kamins Construction Pay Estimate 4 FINAL Closing Date: 09/25/2009 Item Description Unit Est. Unit Previous Previous This Nn SCHEDULE A - Maplewood Basin 001. Mobilization Lump Sum 1 $4,539.0( Construct Bypass Structures, Divert Creek, Rescue Fish, 002. Drain Basin Lump Sum 1 $1,104.00 003. Remove, Haul, and Dispose of Sediment Lump Sum 1 $21,966.00 004. Refill Basin, Remove Bypass Strucs., Restore Banks Lump Sum 1 $1.176.00 008. Vegetation Maintenance Areas Each 14 $276.69 009. Hydroseed Sq. Ft. 3000 $0.24 010. Minor Changes Lump Sum 1 $1,500.00 CO-01 Maplewood - Addl Sediment Removal & Cleaning T & M 1 1 $2,889.58 SCHEDULE B - Madsen Basin 001. Mobilization Lump Sum 1 $4,539.00 Construct Bypass Structures, Divert Creek, Rescue Fish, 002. Drain Basin Lump Sum 1 $1.104.00 003. Remove, Haul, and Dispose of Sediment Lump Sum 1 $21,966.00 004. Refill Basin, Remove Bypass Strucs., Restore Banks Lump Sum 1 $1,176.00 005. Hydroseed Sq. Ft. 1200 $0.48 006 Minor Changes Lump Sum 1 $1 000.00 P. Subtotal Sales Tax 9.5 TT Total 0.90 $4,085.10 1.00 $1,104.00 1.00 $21,966.00 1.00 $1,176.00 24.00 $6;640.56 2970.00 $712.80 $0.00 0.98 $2,818.44 0.90 $4.085.10 1.00 $1,104.00 1.00 $21,966.00 1.00 $1,176.00 3605.00 $1,730.40 $0.00 $68,564.40 $6 513 62-- $75,078.02 Page 1 This Total Total 0.10 $453.90 1.00 $4.539.00 $0.00 1.00 $1,104.00 $0.00 1.00 $21.966.00 $0.00 1.00 $1,176.00 $0.00 24.00 $6,640.56 $0.00 2970.00 $712.80 $0.00 0.00 $0.00 $0.00 0.98 $2,818.44 0.10 $453.90 1.00 $4,539.r- $0.00 1.00 $1,104.u. $0.00 1.00 $21,966.00 $0.00 1.00 $1,176.00 $0.00 3605.00 $1,730.40 $0.00 0.00 $0.00 $907.80 $69,472.20 $86.24 $994.04 $76,072.06 I State t Washington Department of Revenue ��A- PO Box 47474 REVENUE Olympia WA 98504-7474 Contractor's Registration No.(UBI No.) 602 833 199 Date 9/28/09 NOTICE OF COMPLETION OF PUBLIC WORKS CONTRACT From: City of Renton Attn: Natalie Wissbrod 1055 S Grady Way Renton, WA 98055 4 bepart>r>ent Use Oniy� Assigned To Date Assigned Notice is hereby given relative to the completion of contract or project described below Description of Contract Contract Number SWP-27-2057 Maplewood, Madsen Creek Sediment Basin Cleaning CAG-09-122 Contractor's Name Telephone Number Kamins Construction 206-396-9115 Contractor's Address 19315 Ross Road, Bothell, WA 98011 Date Work Commenced Date Work Completed Date Work Accepted 7/31/09 8/25/09 10/19/09 Surety or Bonding Company "estern Surety Compay, Construction Bonding of Wash, Chris Fix, 206-361-9693 .gent's Address Construction Bonding of Washington, PO Box 75715, Seattle, WA 98175 Contract Amount $ 65,239.66 Additions $ + 4,232.54 Liquidated Damages $ Reductions $ — Sub -Total $ 69,472.20 Amount Disbursed $ 72,598.45 Amount of Sales Tax Paid at 9.5 % $ 6,599.86 Amount Retained $ 3,473.61 (If various rates apply, please send a breakdown) TOTAL $ 76,072.06 TOTAL $ 76,072.06 � Tice Comments: Signature Type or Print Name Phone Number The Disbursing Officer must complete and mail THREE copies of this notice to the Department of Revenue, n') Box 47474, Olympia, WA 98504-7474, immediately after acceptance of the work done under this contract. NO i'MENT SHALL BE MADE FROM RETAINED FUNDS until receipt of Department's certificate, and then only in accordance with said certificate. To inquire about the availability of this document in an alternate format for the visually impaired, please call (360) 753-3217. Teletype (TTY) users please call (800) 451-7985. You may also access tax information on our Internet home page at http://dor.wa.gov. REV 31 0020e (6-27-01) CITY OF RENTON COUNCIL AGENDA BILL Submitting Data: Dept/Div/Board.. Public Works Utility Systems Division Staff Contact...... Michael Benoit, Wastewater Utility Engineer (ext. 7206) Subject: Establishment of the 126th Avenue SE Sanitary Sewer Extension Special Assessment District Exhibits: Issue Paper Draft Notice of Potential Assessment Draft Assessment District Roll For Agenda of: October 19, 2009 Agenda Status Consent .............. Public Hearing.. Correspondence.. Ordinance ............. Resolution............ Old Business........ New Business....... Study Sessions...... Information......... Recommended Action: Approvals: Refer to Utilities Committee Legal Dept......... Finance Dept..... Other ............... Fiscal Impact: N/A Expenditure Required... Transfer/Amendment....... Amount Budgeted....... Revenue Generated......... Total Project Budget City Share Total Project.. SUMMARY OF ACTION: The 126th Avenue SE Utility Project will be out for bid for construction soon. This project includes the replacement of an existing Renton water main and the installation of a sanitary sewer main. In order to ensure that the cost of the sanitary sewer main portion of the project is equitably distributed to those who benefit, a special assessment district needs to be established. KI STAFF RECOMMENDATION: Approve the preliminary 126th Avenue SE Sanitary Sewer Extension Special Assessment District and direct staff to proceed with the establishment of the final Special Assessment District upon completion of the construction of the 126th Avenue SE Utility Project. H:\file Sys\WWP - WasteWater\WWP-27-3514 126th Ave SE Sewer Extension\SAD\Prelim SAD\126th Agenda_SAD.doc\MABtp Rentonnet/agnbill/ bh PUBLIC WORKS DEPARTMENT, p City of M E M O R A N D U M DATE: October 8, 2009 TO: Randy Corman, Council President Members of Renton City Council VIA: Denis Law, Mayor ��� %W FROM: Gregg Zimmermarl�'Administrator STAFF CONTACT: Michael Benoit, Wastewater Utility Engineer (ext. 7206) SUBJECT: Establishment of the 126th Avenue SE Sanitary Sewer Extension Special Assessment District ISSUE: Should the City of Renton form a special assessment district in order to ensure that the cost of the sanitary sewer portion of the 126th Avenue SE Utility Project is equitably distributed to those who benefit? RECOMMENDATION: Approve the preliminary 126th Avenue SE Sanitary Sewer Special Assessment District and direct staff to proceed with the establishment of the final Special Assessment District upon completion of the construction of the 126th Avenue SE Utility Project. BACKGROUND SUMMARY: The 126th Avenue SE Utility Project will replace the existing Renton water main and install a new sanitary sewer main to provide direct sewer service to properties adjacent to the portion of 126th Avenue SE between SE 100th Street and SE 104th Street (see attached map). The estimated cost of the new sewer collection main is $439,163.73. The Wastewater Utility has proposed to use a per -connection method of calculating the assessments for the properties within the proposed assessment district. This method divides the cost of the project by the number of lots within the assessment district. We calculate the potential of 40 lots within the proposed assessment district boundary. Corman, Council President October 8, 2009 Page 2 of 2 Since it is a replacement, the water main portion of the project will be funded through rates. CONCLUSION: It has been the policy of the City when sanitary sewer facilities have been installed that the City create a special assessment district in order to ensure that each property that benefits from the new facility pays its fair share of the costs. This policy helps to ensure that the existing ratepayers do not pay a disproportionate share of the costs for system expansion or growth. Therefore, we recommend that Council approve staff's request for the establishment of a preliminary Special Assessment District and direct staff to prepare the final Special Assessment District upon completion of the construction of the project. Attachment cc: Lys Hornsby, Utility Systems Director Dave Christensen, Wastewater Utility Engineering Supervisor JoAnn Wykpisz, PW Principal and Financial Administrative Analyst File H:\File Sys\WWP - WasteWater\WWP-27-3514 126th Ave SE Sewer Extension\SAD\Prelim SAD\126th_Issue PRELIMSAD.doc\MABtp CITY OF RENTON NOTICE OF POTENTIAL ASSESSMENT NOTICE OF PRELIMINARY HEARING For City of Renton Special Assessment District 126th AVENUE SE SANITARY SEWER EXTENSION (1st Preliminary Notice) Mailed: OctobereXX 2009 - ... I __.­­ «TAXPAYER_N» ASSESSMENT «TAXPAYER_B» $10,979.09 per unit «TAXPAYER_C» ((ZIP)) King County Account No. ((ASSESSOR —I)) LEGAL DESCRIPTION: ((LEGAL DESC» Per State Law (RCW 35.92.025) and City Ordinance No. 4444 the City may hold an Ordinance against the construction of water facilities, sewer facilities, storm water facilities, and street improvements including signalization and lighting, for the reimbursement by any owner of real estate who did not contribute to the original cost of such facility(ies) who subsequently tap onto or use said facility(ies). Future users are subject to a fair pro-rata share of the cost of the construction of said facility(ies). Costs will become payable by the future user(s) upon issuance of a City permit authorizing the future user(s) to construct improvements that would allow the users property to derive direct benefit from these facilities. It is the intent of this notice to inform you, that under the above quoted law, the Public Works Department of the City of Renton has filed a request with the Renton City Council, to recover a portion of the City's costs associated with the following project and that the cost recovery may likely affect your property. Contract: Special Assessment District No. OOXX Estimated Construction start date late fali:4009. Scope of Work: Installation of approximately 1143 linear feet of 8" diameter PVC sanitary sewer pipe, 670 linear feet `of 6" diameter PVC sanitary side -sewer pipe, 3 sanitary sewer manholes, associated asphalt street reconstruction, associated curb & gutter restoration, and associated landscape restoration. This work is to take place in 126th Avenue SE between SE 100th Street and SE 104th Street. A copy of a map of the proposed assessment area is attached. Approximation of the Preliminary (estimated) potential assessment per lot is shown at the top of this page, by the King County Tax Account number. The purpose of the assessment district is to allow the City the ability to collect the costs of the construction of the 126th Avenue SE Sanitary Sewer Extension by all those who benefit from its construction. To accomplish this, we are required to record a Notice of Potential Assessment against any parcel that may benefit in the future. It is our goal to ensure, in fairness to all, that any property owner that connects at a later date pays their share just like those who will connect right away. The benefit area is defined as the ultimate service basin this facility may be able to serve. This boundary is shown on the attached map and is labeled "Special Assessment District Boundary". You will only be required to pay this assessment when the property gains benefit from the new sewer main (i.e. when your house is physically connected to the city's sewer system). Until that time, the property can be sold or change hands without activating the assessment. Benefit from this sewer interceptor can be described as follows: O A property not connected to a City sewer facility (i.e., currently utilizing an on -site system), that connects to the sewer system associated with this district will trigger the assessment. Until then, the assessment will not be activated. • Property that is connected to City sewer through a Temporary Sewer Service Agreement requiring participation in the extension of sanitary sewer mains. You will not be required to pay the assessment until one of the above situations occurs. However, the assessment district will accrue simple interest at a rate of between 5% and 7% for a period of ten years per annum. The accrual of interest will begin thirty (30) days after the publication of the ordinance adopting the Final Assessment District. To avoid interest charges at a future date, you may pay the amount of assessment during the thirty -day period after publication, interest free. This option is totally at the discretion of the property owner. Following construction, after the City receives the actual (final) costs, a second notice will be mailed to you verifying your inclusion in the Special Assessment District (recovery area) boundary. A quote of the final assessment dollar amounts will be provided on this second notice. Per City Ordinance No. 4444 you may request an appeal hearing by writing to the Renton City Council, c/o City Clerk, 1055 S Grady Way, Renton, WA 98057, within twenty (20) days of this preliminary notice. Appeals must adhere to the criteria established under Sections 9-16-4 and 9-16- 9.0 and D of Ordinance No. 4444. During this preliminary stage, appeals will be limited to the issue of whether or not a specific property should be included in the latecomer area. Contact Persons for the City of Renton are: Project Manager: Michael Benoit (425) 430-7206. (Call the project manager for questions pertaining to construction, costs or future connection to, or use of, the improvements.) Wastewater Utility Supervisor: David Christensen (425) 430-7212. Bonnie I. Walton, City Clerk City SAD 1st Notice of Preliminary Assessment/Preliminary Hearing H:\File Sys\WWP- WasteWater\WWP-27-3514126th Ave SE Sewer Extension\SAD\Prelim SAD\126th AVE SAD Prelim-Assess- Notice.doc\MABtp I SE 100th Street SE 104th Street T26th AVENUE SE SANITARY SEWER SPECIAL ASSESSMENT DISTRICT CITY OF RENTON PRELIMINARY ASSESSMENT ROLL SPECIAL ASSESSMENT DISTRICTS 126" AVENUE SE SANITARY SEWER EXTENSION Type: Wastewater Utility Improvements Cost per Unit: $10,979.09 Property Name/Address of Owner Identification ANDERSON ALDON J+JACKIE A 10012 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800016000 Legal Description: LOT 2 BLK 3 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT PAULA STEWART PO Box 50582 BELLEVUE WA 98015 KC Tax Act # 42800021505 Legal Description: LOT 4 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 BRAVE DALE A 10212 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800011506 Legal Description: LOT 4 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT BUFF JOHN E 10247 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800023006 Legal Description: LOT 7 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 COLIS LYNETTE R 10204 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800011001 Legal Description: LOT 3 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT COZZENS AARON 10241 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800022503 Legal Description: LOT 6 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 H:\File Sys\WWP - WasteWater\WWP-27-3514 126th Ave SE Sewer Extension\SAD\Prelim SAD\126th SAD Prelim Assessment Roll\MABtp Page 1 of 5 CITY OF RENTON PRELIMINARY ASSESSMENT ROLL SPECIAL ASSESSMENT DISTRICTS 126" AVENUE SE SANITARY SEWER EXTENSION Type: Wastewater Utility Improvements Cost per Unit: $10,979.09 Property Name/Address of Owner Identification DOUGHERTY 1AMES P 10126 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800010508 Legal Description: LOT 2 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT ERSKINE SEAN R 10004 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800015507 Legal Description: LOT 1 BLK 3 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHTTR LN ESMT FELLER ROB D+KARLA 1 10314 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800014005 Legal Description: LOT 9 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT FRANK RANDAL W 10120 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800010003 Legal Description: LOT 1 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 SUBJ TO CITY LIGHT TRANS LN ESMT LESS TR LN R/W LESS PS P & L R/W GALLAGHER ELSIE MAE 10322 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800014500 Legal Description: LOT 10 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT H:\File Sys\WWP - WasteWater\WWP-27-3514126th Ave SE Sewer Extension\SAD\Prelim SAD\126th SAD Prelim Assessment Roll\MABtp Page 2 of 5 CITY OF RENTON PRELIMINARY ASSESSMENT ROLL SPECIAL ASSESSMENT DISTRICTS 126" AVENUE SE SANITARY SEWER EXTENSION Type: Wastewater Utility Improvements Cost per Unit: $10,979.09 Property Name/Address of Owner Identification GARMENDIA RICARDO J 10205 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800020002 Legal Description: LOT 1 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 HARRINGTON MICHAELA 10023 126TH AVE NE RENTON WA 98056 KC Tax Act # 42800018501 Legal Description: LOT 4 BLK 4 BALCHS ALBERT SIERRA HEIGHTS # 4 HAWES JANICE S 10230 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800013007 Legal Description: LOT 7 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT HEWITT MARGARET A 10228 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800012504 Legal Description: LOT 6 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHTTR LN ESMT HILLMAN LISA M 10020 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800016505 Legal Description: LOT 3 BLK 3 BALCHS ALBERT SIERRA HEIGHTS # 4 SUBJ TO CITY LIGHT TRANS LN ESMT LESS TR LN R/W LESS P S P & L R/W HINESLEYJEANETTE L+RONALD W 10317 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800023501 Legal Description: LOT 8 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 H:\File Sys\WWP - WasteWater\WWP-27-3514 126th Ave SE Sewer Extension\SAD\Prelim SAD\126th SAD Prelim Assessment Roll\MABtp Page 3 of 5 CITY OF RENTON PRELIMINARY ASSESSMENT ROLL SPECIAL ASSESSMENT DISTRICTS 126" AVENUE SE SANITARY SEWER EXTENSION Type: Wastewater Utility Improvements Cost per Unit: $10,979.09 Property Name/Address of Owner Identification KILLIAN KATHLEEN 10219 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800021000 Legal Description: LOT 3 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 KING COUNTY KC ADMIN BLDG, 500 4TH AVE SEATTLE WA 98104 KC Tax Act # 42800029003 Legal Description: BALCHS ALBERT SIERRA HEIGHTS # 4 P S P & L TRANS LN ESMT WITHIN PLAT WEHRLE MICHAELJ 10009 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800017503 Legal Description: LOT 2 BLK 4 BALCHS ALBERT SIERRA HEIGHTS # 4 NIEMI DOUGLAS A & ALAYNE D 10015 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800018006 Legal Description: LOT 3 BLK 4 BALCHS ALBERT SIERRA HEIGHTS # 4 NOPEL ROBERT G 10213 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800020507 Legal Description: LOT 2 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 PACKARD JOHN E+SATOKO A 6947 COAL CREEK PKWY PMB 237 NEWCASTLE WA 98059 KC Tax Act # 42800022008 Legal Description: LOT 5 BLK 5 BALCHS ALBERT SIERRA HEIGHTS # 4 H:\File Sys\WWP - WasteWater\WWP-27-3514 126th Ave SE Sewer Extension\SAD\Prelim SAD\326th SAD Prelim Assessment Roll\MABtp Page 4 of 5 CITY OF RENTON PRELIMINARY ASSESSMENT ROLL SPECIAL ASSESSMENT DISTRICTS 126" AVENUE SE SANITARY SEWER EXTENSION Type: Wastewater Utility Improvements Cost per Unit: $10,979.09 Property Name/Address of Owner Identification PESICKA RICHARD W 10226 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800012009 Legal Description: LOT 5 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT PETERSON L H 10308 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800013502 Legal Description: LOT 8 BLK 2 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS R/W SUBJ TO CITY LIGHT TR LN ESMT TURNER BERNUS G 10003 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800017008 Legal Description: LOT 1 BLK 4 BALCHS ALBERT SIERRA HEIGHTS # 4 WEHRLE MICHAELJ 10035 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800019509 Legal Description: LOT 6 BLK 4 BALCHS ALBERT SIERRA HEIGHTS # 4 LESS P S P & L R/W WULFF BEVERLY & RAYMOND 10031 126TH AVE SE RENTON WA 98056 KC Tax Act # 42800019004 Legal Description: LOT 5 BLK 4 BALCHS ALBERT SIERRA HEIGHTS # 4 H:\File Sys\WWP - WasteWater\WWP-27-3514126th Ave SE Sewer Extension\SAD\Prelim SAD\126th SAD Prelim Assessment Roll\MABtp Page 5 of 5 CITY OF RENTON, WASHINGTON RESOLUTION NO. A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO THE COMMUTE TRIP REDUCTION IMPLEMENTATION AGREEMENT BETWEEN THE WASHINGTON STATE DEPARTMENT OF TRANSPORTATION AND THE CITY OF RENTON FOR THE PURPOSE OF FULFILLING THE REQUIREMENTS OF THE COMMUTE TRIP REDUCTION LAW, RCW 70.94.521 THROUGH 70.94.555. WHEREAS, RCW 70.94.521 through 70.94.555 establishes the requirements and parameters for Commute Trip Reduction programs, including the Growth and Transportation Efficiency Centers in Washington State; and WHEREAS, the State of Washington in its Session Laws of 2009, chapter 470, Section 222(7) and (9), authorizes the funding for Public Transportation and Commute Trip Reduction programs and other special proviso funding through the multi -modal transportation account as identified in the budget through its 2009-2011 biennial appropriations to the Washington State Department of Transportation ("WSDOT"); and WHEREAS, the WSDOT Public Transportation Division is responsible for administering funds on behalf of the state legislature; and WHEREAS, it is necessary to memorialize the terms and conditions under which WSDOT will provide funding to the City of Renton to fulfill the requirements of the Commute Trip Reduction Law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above recitals are found to be true and correct in all respects. 1 RESOLUTION NO. SECTION II. The Mayor and City Clerk are hereby authorized to enter into the Commute Trip Reduction Implementation Agreement with the Washington State Department of Transportation, Agreement No. GCA6243. PASSED BY THE CITY COUNCIL this day of 2009. APPROVED BY THE MAYOR this Approved as to form: Lawrence J. Warren, City Attorney RES.1422:9/22/09:scr Bonnie I. Walton, City Clerk day of , 2009. Denis Law, Mayor 2 CITY OF RENTON, WASHINGTON RESOLUTION NO. kl q A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO ENTER INTO THE COMMUTE TRIP REDUCTION IMPLEMENTATION AGREEMENT BETWEEN THE WASHINGTON STATE DEPARTMENT OF TRANSPORTATION AND THE CITY OF RENTON FOR THE PURPOSE OF FULFILLING THE REQUIREMENTS OF THE COMMUTE TRIP REDUCTION LAW, RCW 70.94.521 THROUGH 70.94.555. WHEREAS, RCW 70.94.521 through 70.94.555 establishes the requirements and parameters for Commute Trip Reduction programs, including the Growth and Transportation Efficiency Centers in Washington State; and WHEREAS, the State of Washington in its Session Laws of 2009, chapter 470, Section 222(7) and (9), authorizes the funding for Public Transportation and Commute Trip Reduction programs and other special proviso funding through the multi -modal transportation account as identified in the budget through its 2009-2011 biennial appropriations to the Washington State Department of Transportation ("WSDOT"); and WHEREAS, the WSDOT Public Transportation Division is responsible for administering funds on behalf of the state legislature; and WHEREAS, it is necessary to memorialize the terms and conditions under which WSDOT will provide funding to the City of Renton to fulfill the requirements of the Commute Trip Reduction Law; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES RESOLVE AS FOLLOWS: SECTION I. The above recitals are found to be true and correct in all respects. 1 RESOLUTION NO. SECTION II. The Mayor and City Clerk are hereby authorized to enter into the Commute Trip Reduction Implementation Agreement with the Washington State Department of Transportation, Agreement No. GCA6243. PASSED BY THE CITY COUNCIL this day of , 2009. APPROVED BY THE MAYOR this Approved as to form: Lawrence J. Warren, City Attorney RES.1422:9/22/09:scr Bonnie I. Walton, City Clerk day of , 2009. Denis Law, Mayor Pj