CALL TO ORDER - Pledge of Allegiance and Roll Call

COMMENTS FROM THE PUBLIC: Citizens are requested to keep comments to a 3 minute maximum to allow time for everyone to speak.

CONSENT AGENDA: The following items are incorporated into the consent agenda and approved by a single motion of the Council.

1) Minutes of the December 15, 2004 regular Council meeting.

2) Approval of Vouchers (2004)

3) Utility Committee Report - Relief from excess utility charges

4) Public Works Uniform Contract

5) Dowl Engineer - Contract for design of sidewalks on 1st Street

1) Nomination and Appointment to Council Position 6

2) Resolution 04-16 Fee Schedule

3) Ordinance 874-04 - Water/Sewer Engineering Standards - 2nd reading

4) Approval of the FCCAP Grant Application

5) Appointment of Mayor Pro-tem for 2005

DISCUSSION: Time Permitting

1) Interlocal Agreement for Jail Services - Snohomish County

2) Legislative Pay

Executive Session:

Adjournment - 10:00 PM or at the conclusion of Council business.

Date: January 12, 2005

Agenda Item #: Consent C 1

SUBJECT: Council minutes

CONTACT PERSON: Laura Koenig, City Clerk/Treasurer

Attached are the minutes of the December 15, 2004 regular Council meeting and the December 15, 2004 Public Hearing on the Water/Sewer Standards as on file in the Office of the City Clerk.

RECOMMENDATION: Approval as submitted.

Public Hearing - Water/Sewer Engineering Standards:

The public hearing on the Water/Sewer Engineering Standards was called to order by Mayor Tolson.

Councilmembers present: Criswell, Seehuus, Flower, and Boyd.; Absent: Boucher and Champeaux

No objections to the Mayor or Council participation.

Staff Reports:

Connie Dunn, Public Works Director: In March 2004 the council was provided a resolution to adopt standards which were referred to the Planning Commission for review. Responses were provided for all comments received. The requirements are standard for the industry and are now summarized in one document instead of several. The major change is the requirement for vacuum testing and wrapping of the manholes.

Council discussed the requirement to wrap the manholes and vacuum testing, increased costs to the projects, requirements of other agencies, ground water impacts, and alternatives available.

Public Input:

David Toyer, Barclay’s North: Requirement for vacuum testing is a major issue. Has 15 years experience in development and no other jurisdiction requires vacuum testing even those with high ground water. Standards are not comparable to other jurisdictions.

On a motion by Councilmember Criswell, seconded by Councilmember Seehuus, the meeting was adjourned. All ayes.

Benjamin Tolson, Mayor

Laura J. Koenig, Clerk/Treasurer

1597-04

CITY OF SULTAN COUNCIL MEETING - December 15, 2004

The regular meeting of the Sultan City Council was called to order in the Sultan Community Center by Mayor Tolson. Councilmembers present: Criswell, Boucher, Seehuus, Flower, and Boyd. Student Representative Tobi Seagram. Absent: Champeaux

Consent: Add excused absence of Councilmember Champeaux

Discussion: Postage meter.

Loretta Storm: Noted that the fee schedule was not included in the council packet. In regards to the Sky Harbor final plat approval, there will be problems on Sultan Basin road due to the mail box location, should have right turn lane to help traffic.

Chris -Manzanares: Raspbery lane: Does not want the City to close the Turk’s Trail. There were positive comments at the last meeting and a petition of support presented.

Wayne Steel - High Street: Lives next to the trail and would like it closed because of the problems.

Flower: Thanked everyone for coming. The City has made progress in the last year with increases in the retail sales tax and control over the budget. Have developed a good budget for 2005. Thanked those who attended the Turk’s Trail meeting. Comments for and against the trail were received. Some of the adjoining property owners feel like "prisoners in their own homes". It was suggested that a group be formed to monitor the trail.

Seehuus: Thanked those who attended the Turk’s Trail meeting. Heard a lot of support and opposition and would like to see a solution to the problem.

Public Works: Connie Dunn, Public Works Director, provided an update on the 1st street project, 5th Street Signal and Sultan Basin Road projects. Staff met with the adjoining property owners near the 5th Street signal to discuss the impacts on parking when the project is completed. Discussed the sidewalk project on 1st Street and the potential need to acquire property.

Police Department: Chief Walser discussed the Justice Records system which will cost $12,000. Need to amend the 2005 budget to include the expenditure. Will meet with the Finance Committee to discuss options for funding.

CONSENT AGENDA:

The following items are incorporated into the consent agenda and approved by a single motion of the Council. On a motion by Councilmember Boucher, seconded by Councilmember Seehuus, the consent agenda was approved as amended. Criswell - aye; Boucher - aye; Seehuus - aye; Flower- aye; Boyd - aye.

1) Minutes of the December 8, 2004 regular Council meeting and the Public Hearings on the 2004 Budge

Amendments and 2005 Budget.

2) Resolution 04-22 Small Works Roster

3) Interlocal Agreement for Small Works Roster with the City of Lynnwood.

4) Interlocal Agreement for 2005 Washington State Purchasing Cooperative Membership

5) Resolution 04-20 Adoption of the National Incident Management System

1598-04

CITY OF SULTAN COUNCIL MEETING - December 15, 2004

Consent Agenda:

6) Date Avenue Project - Final Acceptance

7) Nomination of Councilmember Flower as the Snohomish County Health District Representative

8) LLBEG Grant - approval to submit application

9) Acceptance of Councilmember Jeff Everett’s resignation from the Sultan City Council

10) Excused absence of Councilmember Champeaux from the December 15, 2004 Council meeting.

Resolution 04-15 1319 Sky Harbor Final Plat Acceptance: Rick Cisar, City Planner, reviewed the final plat documents, bond requirements, letter accepting the improvements as complete and the sewer easement from the Hammer property. Tom Graafstra, City Attorney, advised that 1319 Sky Harbor has assigned the Hammer easement to the City and it has been recorded and title insurance has been provided. Brief discussion was held regarding the location of the mail boxes, road width and access from the Sultan Basin Road.

On a motion by Councilmember Flower, seconded by Councilmember Criswell, Resolution 04-15 accepting the final plat of 1319 Sky Harbor was adopted. All ayes.

Ordinance 867-04 2004 Budget Amendments: On a motion by Councilmember Boucher, seconded by Councilmember Seehuus, Ordinance 867-04, 2004 Budget Amendments, was adopted. All ayes.

Ordinance 869-04 2005 Budget: On a motion by Councilmember Criswell, seconded by Councilmember Seehuus, Ordinance 869-04, 2005 Budget, was adopted. All ayes.

Ordinance 872-04 2005 Salary Schedule: On a motion by Councilmember Criswell, seconded by Councilmember Boucher, Ordinance 872-04, 2005 Salary Schedule, was adopted. All ayes.

Resolution 04-19 Budget Policies: On a motion by Councilmember Flower, seconded by Councilmember Seehuus, Resolution 04-19 setting budget policies for 2005 was adopted. All ayes.

Resolution 04-16 - 2005 Fee Schedule: Staff members reviewed the changes to the land use fees, building permits, and cemetery fees. Councilmembers requested additional time to review the document. On a motion by Councilmember Seehuus, seconded by Councilmember Flower, Resolution 04-16, 2005 Fee Schedule, was tabled. All ayes.

Ordinance 874-04 - Water/Sewer Engineering Standards: On a motion by Councilmember Criswell, seconded by Councilmember Flower, Ordinance 874-04, Water/Sewer Engineering Standards, was introduced and passed on to a second reading. All ayes except Boucher who abstained.

Resolution 04-21 Interfund Loan Termination: Laura Koenig, Clerk/Treasurer discussed the original purpose for the loan and the decision by the Council to terminate the project. On a motion by Councilmember Flower, seconded by Councilmember Criswell, Resolution 04-21 terminating an interfund loan was adopted. All ayes.

RFP Computer Software: Staff reviewed the proposed RFP for the financial software. On a motion by Councilmember Boucher, seconded by Councilmember Flower, staff was directed to proceed with advertising the RFP for computer software. All ayes.

1599-04

CITY OF SULTAN COUNCIL MEETING - December 15, 2004

Voucher Approval: On a motion by Councilmember Criswell, seconded by Councilmember Seehuus, Vouchers #04-1183 through #04-1255 in the amounts of $237,103.96 and payroll through December 3, 2004, in the amounts of $113,305.70, to be drawn and paid on the proper accounts.

On a motion by Councilmember Seehuus, seconded by Councilmember Flower, the Finance Committee was authorized to approve 2004 vouchers prior to next meeting. All ayes with Councilmember Criswell abstaining.

Council Vacancy: Discussion was held regarding the need to advertise, process for interviews, evaluation of applicants and appointment. Staff was directed to advertise for the vacant council position.

Turks Trail: Mayor Tolson advised that there was a good turnout at the meeting and the students in attendance at the meeting supported leaving the trail open. There was also good response from the residents in the area and school officials. Discussion was held regarding the public safety issues, potential financial impacts due to the grant funding used to build the trail, addition of sidewalks since the trail was constructed, impact to the adjoining property owners, disposition of the property, problems caused by non-students, options for keeping the trail open, and the need to patrol the area.

Postage Meter Councilmember Criswell requested information on the cost of the postage meter. Laura Koenig, Clerk/Treasuer, advised that the cost was around $3,400 and the purchase was more cost effective then continuing to lease a meter.

Loretta Storm: Understands that the requirements for the roads in the Sky Harbor plat can not be changed but there will be more developments in the future and the council needs to make sure standards are met. Requested copies of ordinances in electronic format and has not received a response. In regards to the Council selection, would like to see a female appointed. Concerned about discussion of applicants in executive session - does not understand why it is necessary or desirable. Encouraged the council to do the right thing and make the information public.

Mayor Tolson: Future development on the Basin Road will be done under the revised code.

Executive Session: On a motion by Councilmember Boyd, seconded by Councilmember Seehuus, the Council adjourned to executive session for two minutes to discuss pending litigation. All ayes.

Adjournment: On a motion by Councilmember Criswell, seconded by Councilmember Seehuus, the meeting adjourned at 9:15 PM.

Ben Tolson, Mayor

Laura J. Koenig, Clerk/Treasurer

Date: January 12, 2005

Agenda Item #: Consent C 2

SUBJECT: Voucher Approval

CONTACT PERSON: Laura Koenig, Clerk/Treasurer

SUMMARY STATEMENT:

Approval of Vouchers # 04-1256 through #04-1297 in the amounts of $595,101.43 and payrolls through December 31, 2004 in the amount of $75,039.93 to be drawn and paid on the proper accounts.

The vouchers include the payoff of the SRF loan for the Pump Station and the Rural Development bond for the Sewer Plant.

FISCAL IMPACTS:

Expenditure Required: $670,141.36

RECOMMENDATION: Recommend approval as submitted.

COUNCIL ACTION:

Action Date:

Date: January 12, 2005

Agenda Item #: Consent C 3

SUBJECT: Public Works Committee - Request for Relief on Excess Charges

CONTACT PERSON: Laura J. Koenig, Clerk/Treasurer

SUMMARY STATEMENT: The Public Works Committee has met and reviewed the following request from relief from excess utility charges in accordance with the current adopted Council policy. All accounts were notified of the leaks and repairs were done within the time period required.

Account # 444 $ 43.22 (water)

Account #5512 $ 82.80 (water)

Account #63 $233.12 (water)

Account #2006 $732.63 each (water and sewer)

Account #2103 $645.43 (water)

Account #5678 $452.92 (water)

Account #354 $126.99 (water)

FISCAL IMPACTS: ($2,317.11) water utility and ($732.63) sewer utility.

RECOMMENDATION: Approve the recommendations of the Public Works Committee for relief from excess charges.

ITEM NO: Consent C 4

DATE: January 12, 2005

CONTACT PERSON: Public Works Director Dunn

RECOMMENDED

COUNCIL ACTION:

MEMO

ITEM NO: C-5

DATE: January 12, 2005

SUBJECT: First Street Curb, Gutters and Sidewalks

CONTACT PERSON: Public Works Director Dunn

Engineer Stack

FISCAL IMPACT: $16,500.00 maximum amount payable

RECOMMENDED

COUNCIL ACTION:

ON-CALL CONSULTANT AGREEMENT

THIS AGREEMENT, made and entered into this , day of January, 2005, between the City of Sultan, Washington, hereinafter called "SULTAN" and the above organization hereinafter called "CONSULTANT".

WHEREAS, SULTAN desires to accomplish various improvement projects; and

WHEREAS, SULTAN has a sanitary sewer and water main replacement project on 1^st Street and has received a grant to replace damaged walks and gutters and to install walks where there are none; and

WHEREAS, SULTAN does not have sufficient staff to meet the required commitment and therefore deems it advisable and desirable to engage the assistance of a CONSULTANT to provide the necessary services for the PROJECT; and

WHEREAS, CONSULTANT represents that he/she is in compliance with the Washington State Statutes relating to professional registration, if applicable and has signified a willingness to furnish consulting services to SULTAN.

NOW THEREFORE, in consideration of the terms, conditions, covenants and performance contained herein or attached and incorporated and made a part hereof, the parties hereto agree as follows:

The services under this AGREEMENT shall consist of supplemental topographic surveys and preparation of construction drawings for sidewalk improvements. The CONSULTANT shall furnish all services, labor and related equipment necessary to conduct and complete the services as designated.

The Scope of Services and project level of effort for on-call services will be described and detailed in an Exhibit "A", which will be attached hereto and by this reference made a part of this AGREEMENT. The City reserves the right to negotiate and add additional services under this AGREEMENT. Such additional services shall be mutually negotiated as to extent and estimated cost.

All aspects of coordination of the services of this AGREEMENT, with outside agencies, groups or individuals shall receive advance approval by SULTAN. Necessary contacts and meetings with agencies, groups or individuals shall be coordinated through SULTAN.

The CONSULTANT shall attend coordination, progress and presentation meetings with SULTAN or such Federal, Community, State SULTAN or County officials, groups or individuals as may be requested by SULTAN. SULTAN will provide the CONSULTANT sufficient notice prior to meetings requiring CONSULTANT participation. If requested, the CONSULTANT shall prepare a monthly progress report in a form approved by SULTAN that will outline in written and graphical form the various phases and the order of performance of the services in sufficient detail so that the progress of the services can easily be evaluated.

All reports, plans and specifications and other data furnished to the CONSULTANT by SULTAN shall be returned. All designs, drawings, specifications, documents and other services products prepared by the CONSULTANT prior to completion or termination of this AGREEMENT are instruments of service for this PROJECT and are property of SULTAN. Reuse by SULTAN or by others acting through or on behalf of SULTAN of any such instruments of service not occurring as a part of this PROJECT, shall be without liability or legal exposure to the CONSULTANT.

The CONSULTANT shall not begin any services under the terms of this AGREEMENT until authorized in writing by SULTAN. All services under this AGREEMENT shall be completed by the date that may be shown in EXHIBIT "A" or subsequent additions.

The CONSULTANT shall be paid by SULTAN for completed services and services rendered under this AGREEMENT as provided in Exhibit "A" attached hereto and by this reference made part of this AGREEMENT. Such payment shall be full compensation for services performed or services rendered and for all labor, materials, supplies, equipment and incidentals necessary to complete the services specified in the "Scope of Services".

SULTAN permits subcontracts for those items of services as may be shown in Exhibit "A" to this AGREEMENT.

The services of the sub-consultant shall not exceed its maximum amount payable unless a prior written approval has been issued by SULTAN.

The CONSULTANT shall not sub-contract for the performance of any services under this AGREEMENT without prior written permission of SULTAN. No permission for sub-contracting shall create between SULTAN and sub-contractor any contract or any other relationship.

The CONSULTANT warrants that it has not employed or retained any company or person other than a bona fide employee working solely for the CONSULTANT, to solicit or secure this contract and that it has not paid or agreed to pay any company or person other than a bona fide employee working solely for the CONSULTANT, any fee, commission, percentage, brokerage fee, gift or any other consideration contingent upon or resulting form the award or making of this contract. For breach or violation of this warrant, SULTAN shall have the right to annul this AGREEMENT without liability or in its discretion to deduct from the AGREEMENT price or consideration or otherwise recover the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

Any and all employees of the CONSULTANT or other persons while engaged in the performance of any services or services required of the CONSULTANT under this AGREEMENT, shall be considered employees of the CONSULTANT only and not of SULTAN and any and all claims that may or might arise under any Workmen’s Compensation Act on behalf of said employees or other persons while so engaged and any and all claims made by a third party as a consequence of any act or omission on the part of the CONSULTANT’s employees or other persons while so engaged on any of the services or services provided to be rendered herein shall be the sole obligation and responsibility of the CONSULTANT.

The CONSULTANT shall not engage on a full or part time basis or other basis, during the period of the contract, any professional or technical personnel who are, or have been, at any time during the period of the contract, in the employ of SULTAN, except regularly retired employees, without written consent of the public employer of such person.

The CONSULTANT agrees not to discriminate against any client, employee or applicant for employment or for services because of race, creed, color, religion, national origin, marital status, sex, age or handicap except for a bona fide occupational qualification with regard to but not limited to the following: employment upgrading, demotion or transfer, recruitment or any recruitment advertising, a layoff or terminations, rates of pay or other forms of compensation selection for training or rendering of services. The CONSULTANT understands and agrees that if it violates this provision, this AGREEMENT may be terminated by SULTAN and further that the CONSULTANT shall be barred from performing any services for SULTAN now or in the future unless a showing is made satisfactory to SULTAN that discriminatory practices have terminated and that recurrence of such action is unlikely.

During the performance of this AGREEMENT, the CONSULTANT, for itself, its assignees and successors in interest agrees as follows:

1. COMPLIANCE WITH REGULATIONS: The CONSULTANT shall comply with the Regulations relative to non-discrimination in the same manner as in Federally-assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to a the Regulations), which are herein incorporated by reference and made a part of the AGREEMENT. The CONSULTANT shall comply with the Americans with Disabilities Act of 1992, as amended.
2. NON-DISCRIMINATION: The CONSULTANT, with regard to the services performed by it during the AGREEMENT, shall not discriminate on the grounds of race, creed, color, religion, sex, age, marital status, national origin or handicap except for a bona fide occupational qualification in the selection and retention of sub, including procurements of materials and leases of equipment. The CONSULTANT shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the contract covers a program set forth in Appendix II of the Regulations.

1. Withholding of payments to the CONSULTANT under the AGREEMENT until the CONSULTANT complies and/or
2. Cancellation, termination or suspension of the AGREEMENT, in whole or part.

The right is reserved by SULTAN to terminate this AGREEMENT at any time upon thirty days written notice to the CONSULTANT.

In the event this AGREEMENT is terminated by SULTAN other than for fault on the part of the CONSULTANT, a final payment shall be made to the CONSULTANT for actual hours charged at the time of termination of the AGREEMENT plus any direct non-salary costs incurred at the time of termination of the AGREEMENT.

No payment shall be made for any services completed after ten days following receipt by the CONSULTANT of the Notice to Terminate. If the accumulated payment made to the CONSULTANT prior to Notice of Termination exceeds the total amount that would be due, computed as set forth herein above, then no final payment shall be due and the CONSULTANT shall immediately reimburses SULTAN for any excess paid.

If SULTAN terminates the services of the CONSULTANT for default on the part of the CONSULTANT, the above formula for payment shall not apply. In such an event, the amount to be paid shall be determined by SULTAN with consideration given to the actual costs incurred by the CONSULTANT in performing the services to the date of termination, the amount of services originally required which was satisfactorily completed to date of termination, whether that service is in a form or a type which is usable to SULTAN at the time of termination; the cost to SULTAN of employing another firm to complete the services required and the time which may be required to do so and other factors which affect the value to SULTAN of the services performed at the time of termination. Under no circumstances shall payment made under this subsection exceed the amount, which would have been made using the formula set forth in the previous paragraph.

If it is determined for any reason that the CONSULTANT was not in default or that the CONSULTANT’s failure to perform is without it or it’s employee’s fault or negligence, the termination shall be deemed to be a termination for the convenience of SULTAN in accordance with the provision of the AGREEMENT.

In the event of the death of any member, partner or officer of the CONSULTANT or any of its supervisory personnel assigned to the project, or dissolution of the partnership, termination of the corporation or disaffiliation of the principally involved employee, the surviving members of the CONSULTANT hereby agree to complete the services under the terms of the AGREEMENT, if requested to do so by SULTAN. The subsection shall not be a bar to renegotiation of the AGREEMENT between the surviving members of the CONSULTANT and SULTAN, if SULTAN so chooses.

In the event of the death of any of the parties listed in the previous paragraph, should the surviving members of the CONSULTANT, with SULTAN’s concurrence, desire to terminate this AGREEMENT, payment shall be made as set forth in the second paragraph of this section.

Payment for any part of the services by SULTAN shall not constitute a waiver by SULTAN of any remedies of any type it may have against the CONSULTANT for any breach of the AGREEMENT by the CONSULTANT or for failure of the CONSULTANT to perform services required of it by SULTAN. Forbearance of any rights under the AGREEMENT will not constitute waiver of entitlement to exercise those rights with respect to any future act or omission by the CONSULTANT.

The CONSULTANT shall make such changes and revisions in the complete services of this AGREEMENT as necessary to correct errors appearing therein when required to do so by SULTAN, without additional compensation thereof. Should SULTAN find it desirable for its own purposes to have previously satisfactorily completed services or parts thereof changed or revised, the CONSULTANT shall make such revisions as directed by SULTAN. These services shall b considered as Extra Services and will be paid for as herein provided under Section XIV.

Any dispute concerning questions of fact in connection with the services not disposed of by AGREEMENT between the CONSULTANT and SULTAN shall be referred for determination to the Director of Public Works or SULTAN Engineer, whose decision in the matter shall be final and binding on the parties of this AGREEMENT, provided however, that if an action is brought challenging the Director of Public Works or SULTAN Engineer’s decision, that decision shall be subject to de novo judicial review.

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 Snohomish County. The parties hereto agree that all questions shall be resolved by application of Washington law and that the parties to such action shall have the right of appeal from such decisions of the Superior court in accordance with the law of the Sate of Washington. The CONSULTANT hereby consents to the personal jurisdiction of the Superior court of the State of Washington, situated in Snohomish County.

The CONSULTANT shall comply with all Federal, State and local laws and ordinances applicable to the service to be done under this AGREEMENT. This AGREEMENT shall be interpreted and construed in accord with the laws of Washington.

The CONSULTANT shall indemnify and hold SULTAN and their officers and employees harmless from the CONSULTANT’s negligence under this AGREEMENT; provided that nothing herein shall require a CONSULTANT to indemnify SULTAN against and hold harmless SULTAN from claims, demands or suits based upon the conduct of SULTAN, their agents, officers and employees and provided further that if they are caused by the concurrent negligence of (a) the CONSULTANT’s or employees and (b) SULTAN, their officers and employees, this indemnity provision with respect to (1) claims or suits based upon such negligence, (2) the costs to SULTAN of defending such claims and suits, etc. shall be valid and enforceable only to the extent of the CONSULTANT’s negligence or the negligence of the CONSULTANT’s employees.

The CONSULTANT’s relation to the SULTAN shall be at all times as an independent contractor.

The CONSULTANT specifically assumes potential liability for actions brought by the CONSULTANT’s own employees against SULTAN and, solely for the purpose of this indemnification, the CONSULTANT specifically waives any immunity under the state industrial insurance law, Title 51 RCW. The CONSULTANT recognizes that this waiver was specifically entered into pursuant to the provisions of RCW 4.25.115 and was the subject of mutual negotiation.

The CONSULTANT shall obtain and keep in force during the terms of the AGREEMENT or as otherwise required, the following insurance with companies or through sources approved by the State Insurance Commissioner pursuant to RCW 48.

1. Worker’s compensation and employer’s liability insurance as required by the Sate of Washington.
2. Regular liability and property damage insurance in an amount not less than a single limit of one million and 00/100 Dollars ($1,000,000.00) for bodily injury including death and property damage per occurrence.
3. Professional liability insurance in the amount of $1,000,000 against claims arising out of services provided for in this contract.

Excepting the Worker’s Compensation insurance and any professional liability insurance secured by the CONSULTANT, SULTAN will be named on all certificates of insurance as an additional insured. The CONSULTANT shall furnish SULTAN with verification of insurance and endorsements required by this AGREEMENT. SULTAN reserves the right to require complete certified copies of all required insurance policies at any time.

All insurance shall be obtained from insurance companies authorized to do business in the State of Washington. The CONSULTANT shall submit a certificate of insurance as outlined above within 14 days of the execution of this AGREEMENT to SULTAN.

No cancellation of the foregoing policies shall be effective without thirty (30) days prior notice to SULTAN.

SULTAN will pay no progress payments under Section V until the CONSULTANT has fully complied with this section. This remedy is not exclusive; and SULTAN may take such other action as is available to them under other provisions of this AGREEMENT or otherwise in law.

If any such change causes an increase or decrease in the estimated cost of or the time required for, performance of any part of the services under this AGREEMENT, whether or not changed by the order or otherwise affects any other terms and conditions of the AGREEMENT, SULTAN shall make an equitable adjustment in the (1) maximum amount payable; (2) delivery or completion schedule or both; and (3) other affected terms and shall modify the AGREEMENT accordingly.

The CONSULTAN must submit its "request for equitable adjustment" (hereafter referred to as claim) under this clause within 30 days form the date of receipt of the written order. However, if SULTAN decides that the facts justify it, SULTAN may receive and act upon a claim submitted before final payment of the AGREEMENT.

Failure to agree to any adjustment shall be a dispute under the Disputes clause. However, nothing in this clause shall excuse the CONSULTANT from proceeding with the AGREEMENT as changed.

Notwithstanding the terms and conditions of the first two paragraphs above, the maximum amount payable for this AGREEMENT, shall not be increased or considered to be increased except by specific written supplement to this AGREEMENT.

The CONSULTANT shall place its endorsement and professional stamp on all final survey and engineering products.

This document and referenced attachments contains all covenants, stipulations and provisions agreed upon by the parties. No agent or representative of either party has authority to make and the parties shall not be bound by or be liable for any statement, representation, promise or agreement not set forth herein. No changes, amendments or modifications of the terms hereof shall be valid unless reduced to writing and signed by the parties as an amendment to this AGREEMENT.

This AGREEMENT may be simultaneously executed in several counterparts, each of which shall be deemed to be an original having identical legal effect. The CONSULTANT does hereby ratify and adopt all statements, representations, warranties, covenants and agreements contained in the proposal and the supporting materials submitted by the CONSULTANT and does hereby accept the AGREEMENT and agrees to all of the terms and conditions thereof.

In witness whereof, the parties hereto have executed this AGREEMENT as of the day and year first above written.

ATTEST:

Laura J. Koenig, Clerk-Treasurer

APPROVES AS TO FORM:

Thom Graafstra, City Attorney

ITEM NO: Action A-1

DATE: January 12, 2005

A RESOLUTION ESTABLISHING FEES, FINES, PENALTIES

WATER/SEWER ENGINEERING STANDARDS