Location: Bonney Lake Justice & Municipal Center, 9002 Main Street East, Bonney Lake, Washington.

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1 CITY COUNCIL WORKSHOP March 21, :00 P.M. AGENDA Location: Bonney Lake Justice & Municipal Center, 9002 Main Street East, Bonney Lake, Washington. I. CALL TO ORDER: Mayor Neil Johnson II. III. ROLL CALL: Elected Officials: Mayor Neil Johnson, Jr., Deputy Mayor Randy McKibbin, Councilmember Justin Evans, Councilmember Donn Lewis, Councilmember Katrina Minton-Davis, Councilmember James Rackley, Councilmember Dan Swatman, and Councilmember Tom Watson. AGENDA ITEMS: p. 3 p. 25 p. 41 p. 57 A. Presentation/Discussion: AB17-27 Ordinance D17-27 General Obligation Bond to Finance the SR th Intersection Improvement Thompson/Nelson. B. Discussion/Action: AB17-26 Resolution 2584 A Resolution Of The City Council Of The City Of Bonney Lake, Pierce County, Washington, Awarding The Emergency Sewer Valve Replacement Project To Tucci and Sons, Inc. C. Discussion/Action: AB17-07 Ordinance D17-07 An Ordinance Of The City Council Of The City Of Bonney Lake, Pierce County, Washington, Annexing Certain Real Property, Identified As The Kelly Creek Vista Potential Annexation Area And The Delany Potential Annexation Area, Into The City Of Bonney Lake, Pursuant To Revised Code Of Washington (RCW) 35A (Pursuant to Public Hearing held March 14, 2017) D. Discussion/Action: AB17-06 Resolution 2575 A Resolution Of The City Council Of The City Of Bonney Lake, Pierce County, Washington Authorizing The City Of Bonney Lake Mayor To Sign The Interlocal Agreement With The Pierce County Regarding The Annexation Of An Unincorporated Urban Area(S) Utilizing The Procedures Set Forth In Revised Code Of Washington (RCW) 35A And Authorizing The Mayor To Enter Into A Memorandum Of Understanding Regarding The Transition Of Governmental Services Related To Said Annexation. (Pursuant to Public Hearing held March 14, 2017) E. Council Open Discussion p. 137 p. 155 F. Review of Minutes: February 21, 2017 Workshop, February 28, 2017 Meeting, and March 14, 2017 Meeting. G. Discussion: AB17-15 D17-15 Restricted for Justice & Municipal Center and Vicinity. Page 1 of 2 Agenda Packet p. 1 of 158

2 City Council Agenda March 21, 2017 IV. EXECUTIVE/CLOSED SESSION: Pursuant to RCW and/or RCW , the City Council may hold an executive or closed session. The topic(s) and duration will be announced prior to the session. V. ADJOURNMENT For citizens with disabilities requesting translators or adaptive equipment for communication purposes, the City requests notification as early as possible prior to the meeting regarding the type of service or equipment needed. The City Council may act on items listed on this agenda, or by consensus give direction for future action. The Council may also add and take action on other items not listed on this agenda. Agenda Packet p. 2 of 158 Page 2 of 2

3 City of Bonney Lake, Washington City Council Agenda Bill (AB) Department/Staff Contact: Executive / Don Morrison Agenda Item Type: Ordinance Meeting/Workshop Date: 21 March 2017 Ordinance/Resolution Number: D17-27 Agenda Bill Number: AB17-27 Councilmember Sponsor: Lewis Agenda Subject: General Obligation Bond to Finance the SR th Intersection Improvement Full Title/Motion: An Ordinance Authorizing The Issuance And Sale Of Limited Tax General Obligation Bonds Of The City In An Aggregate Principal Amount Not To Exceed $4,800,000 To Finance The Cost Of Certain Street Improvements In The City; Establishing Terms Of And Parameters For The Bonds; Authorizing Each Of The City Administrator And Finance Director To Act As The City s Designated Representative To Approve The Manner Of Sale And Final Terms Of The Bonds; Providing For The Disposition Of The Bond Proceeds; And Providing For The Annual Levy Of Taxes To Pay The Principal Of And Interest On The Bonds.. Administrative Recommendation: Approve Background Summary: The development agreements with Visconsi and Costco provide that the City would construct the SR th intersection improvements required by WSDOT as its contribution to the project. This bond ordinance authorizes the City to issue up to $4.8M in general obligation bonds. This amount is more that the engineer's current estimated costs ($4M), but is prudent in case bids come in high or other unforseen events. Bids for the project will be opened prior to actually issuing the bonds, so the actual amount will be determined at that time. The bonds would be paid off with a portion of the City share of new sales taxes generated by Costco. Attachments: Ordinance D17-27 BUDGET INFORMATION Budget Amount Current Balance Required Expenditure Budget Balance Fund Source General Utilities Other Budget Explanation: $ NA COMMITTEE, BOARD & COMMISSION REVIEW Council Committee Review: Other Date: Approvals: Chair/Councilmember Councilmember Councilmember Yes No Commission/Board Review: Hearing Examiner Review: Forward to: Consent Agenda: Yes No COUNCIL ACTION Workshop Date(s): 2/21/17; 3/21/17 Public Hearing Date(s): Meeting Date(s): Tabled to Date: APPROVALS Director: Mayor: Date Reviewed by City Attorney: (if applicable) Agenda Packet p. 3 of 158 Version Oct. 2010

4 Agenda Packet p. 4 of 158

5 CITY OF BONNEY LAKE, WASHINGTON LIMITED TAX GENERAL OBLIGATION BONDS, 2017 ORDINANCE NO. D17-27 AN ORDINANCE of the City of Bonney Lake, Washington, authorizing the issuance and sale of limited tax general obligation bonds of the City in an aggregate principal amount not to exceed $4,800,000 to finance the cost of certain street improvements in the City; establishing terms of and parameters for the bonds; authorizing each of the City Administrator and Finance Director to act as the City s designated representative to approve the manner of sale and final terms of the bonds; providing for the disposition of the bond proceeds; and providing for the annual levy of taxes to pay the principal of and interest on the bonds. PASSED: March 28, 2017 Prepared by: Stradling Yocca Carlson & Rauth, P.C. Seattle, Washington Agenda Packet p. 5 of 158

6 TABLE OF CONTENTS* Section 1. Definitions... 1 Section 2. The Project... 3 Section 3. Authorization of Bonds... 4 Section 4. Registration, Exchange and Payments... 4 Section 5. Redemption; Purchase of Bonds... 7 Section 6. Form of Bonds... 9 Section 7. Execution of Bonds Section 8. Bond Fund; Pledge of Taxes and Credit Section 9. Defeasance Section 10. Tax Covenants; Special Designation Section 11. Sale of Bonds Section 12. Application of Proceeds of Bonds Section 13. Undertaking to Provide Ongoing Disclosure Section 14. Lost or Destroyed Bonds Section 15. General Authorization Section 16. Severability Section 17. Effective Date Page * This table of contents is not a part of this ordinance; it is included for convenience of the reader only. Agenda Packet p. 6 of 158 -i-

7 ORDINANCE NO. D17-27 AN ORDINANCE of the City of Bonney Lake, Washington, authorizing the issuance and sale of limited tax general obligation bonds of the City in an aggregate principal amount not to exceed $4,800,000 to finance the cost of certain street improvements in the City; establishing terms of and parameters for the bonds; authorizing each of the City Administrator and Finance Director to act as the City s designated representative to approve the manner of sale and final terms of the bonds; providing for the disposition of the bond proceeds; and providing for the annual levy of taxes to pay the principal of and interest on the bonds. WHEREAS, the City of Bonney Lake, Washington (the City ), wishes to continue street improvements along the State Route 410 corridor, including improvements to improve safety and access at the new intersection with the extension of 204th Avenue (as further described herein, the Project ); and WHEREAS, the Council finds that it is in the best interest of the City and its residents to finance the cost of the Project by the issuance of limited tax general obligation bonds of the City, in a principal amount not to exceed $4,800,000 (the Bonds ); and WHEREAS, as authorized by RCW (2), the Council wishes to delegate to the City Administrator and Finance Director, as the City s designated representatives, the authority to determine the manner of sale and final terms of the Bonds on the terms and within the parameters set forth in this ordinance; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, WASHINGTON, DO ORDAIN, as follows: Section 1. Definitions. The following words and terms as used in this ordinance have the following meanings for all purposes of this ordinance, unless some other meaning is plainly intended. Bond Fund means the Limited Tax General Obligation Bond Redemption Fund, 2017, authorized to be established pursuant to Section 7 hereof. Bond Register means the registration records for the Bonds maintained by the Bond Registrar. Bond Registrar means the party appointed, pursuant to Section 4 of this ordinance, to register and authenticate the Bonds, maintain the Bond Register, transfer ownership of the Bonds, and pay the principal of and interest on the Bonds. Agenda Packet p. 7 of 158

8 Bonds means the City of Bonney Lake, Washington, Limited Tax General Obligation Bonds, 2017, authorized to be issued in a principal amount not to exceed $4,800,000 pursuant to this ordinance. City means the City of Bonney Lake, Washington, a municipal corporation duly organized and existing under the laws of the State of Washington. City Administrator means the duly qualified, appointed and acting City Administrator of the City or any other officer who succeeds to the duties now delegated to that office. Code means the Internal Revenue Code of 1986, as amended, together with corresponding and applicable final, temporary or proposed regulations and revenue rulings issued or amended with respect thereto by the United States Treasury Department or the Internal Revenue Service, to the extent applicable to the Bonds. Council means the City Council as the general legislative authority of the City. Designated Representative means the City Administrator or Finance Director or another City officer designated by the City Administrator. DTC means The Depository Trust Company of New York, New York, or any successor or substitute depository for the Bonds. Fiscal Agent means the fiscal agent of the State of Washington appointed by the Washington State Finance Committee from time to time. Government Obligations means those obligations now or hereafter defined as such in Chapter RCW, as such chapter may be hereafter amended or restated. Letter of Representations means a blanket issuer letter of representations from the City to DTC. MSRB means the Municipal Securities Rulemaking Board or any successor to its functions. Project means the street improvements described in Section 2 of this ordinance, together with incidental costs incurred in connection with carrying out and accomplishing the Project, consistent with RCW Purchase Contract means the Purchaser s term sheet or an agreement between the City and the Purchaser or Purchaser s term sheet accepted by a Designated Representative with respect to the purchase of the Bonds. Purchaser means D.A. Davidson & Co. or the corporation, firm, bank, financial institution selected by the Designated Representative to purchase the Bonds in a negotiated underwriting or private placement. Agenda Packet p. 8 of

9 Registered Owner means the person named as the registered owner of a Bond in the Bond Register. For so long as the Bonds are held in book-entry only form, DTC will be deemed to be the sole Registered Owner. Rule means the SEC s Rule 15c2-12 under the Securities Exchange Act of 1934, as the same may be amended from time to time. SEC means the Securities and Exchange Commission of the United States. In this ordinance, unless the context otherwise requires: (a) The terms hereby, hereof, hereto, herein, hereunder and any similar terms, as used in this ordinance, refer to this ordinance as a whole and not to any particular article, section, subdivision or clause hereof, and the term hereafter means after, and the term heretofore means before, the date of this ordinance; (b) Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa; (c) Words importing persons include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (d) Any headings preceding the text of the several articles and Sections of this ordinance, and any table of contents or marginal notes appended to copies hereof, are solely for convenience of reference and do not constitute a part of this ordinance, nor will they affect its meaning, construction or effect; and (e) All references herein to articles, sections and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof. Section 2. The Project. (a) Authority for and Description of Project. The City wishes to make the following improvements to SR 410: frontage improvements on SR 410, removal of the median barrier and arterial widening on SR 410 to provide a westbound left turn lane and a new eastbound third through lane east and west of the project, installation of a traffic signal at the intersection of 204th Avenue E and SR 410, and traffic signal coordination along the SR 410 corridor between 192nd Avenue and 214th Avenue, together with landscaping, irrigation, and lighting improvements related to the foregoing (the Project ). Incidental costs incurred in connection with carrying out and accomplishing the Project, consistent with RCW , may be included as costs of the Project. The total expected cost of the Project is currently estimated at approximately $4,000,000, which is expected to be paid from proceeds of the Bonds and other available money of the City. A more accurate estimate of the Project s costs will be available -3- Agenda Packet p. 9 of 158

10 before the Bonds are issued. Because the City does not have sufficient funds currently available and budgeted for this Project, the City Council finds that it is in the best interests of the City to issue the Bonds to carry out the Project. If proceeds of the Bonds are insufficient to accomplish all of the Project, the City will use Bond proceeds for those portions of the Project deemed by the City most necessary and in the best interest of the City. If the entire Project has been completed or duly provided for, or if all or a portion of the Project is found to be impracticable, the City may apply the Bond proceeds or any portion thereof to other street improvements as the City Council in its discretion may determine. Pursuant to applicable law, including without limitation chapters 35.37, 35.40, 39.36, 39.44, and RCW, the City is authorized to issue general obligation bonds for the purpose of financing the Project. (b) Debt Capacity. The maximum amount of indebtedness authorized by this ordinance is $4,800,000. Based on the following facts, this amount may be issued within the amount of debt permitted to the City for general municipal purposes without a vote: The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes (i.e., for collection in the calendar year 2017) is $2,370,217,812. As of March 1, 2017, the City has limited tax general obligation indebtedness, consisting of bonds, notes, public works trust fund loans and City guarantees outstanding in the principal amount of $7,670,000, which is incurred within the limit of up to 1½% of the value of the taxable property within the City permitted for general municipal purposes without a vote. As of March 1, 2017, the City has no unlimited tax general obligation indebtedness for capital purposes outstanding. Section 3. Authorization of Bonds. To finance costs of the Project, the City will issue its limited tax general obligation bonds in an aggregate principal amount not to exceed $4,800,000 (the Bonds ). The Bonds shall be general obligations of the City, shall be designated City of Bonney Lake, Washington, Limited Tax General Obligation Bonds, 2017 ; shall be fully registered as to both principal and interest; shall be in the denomination of $5,000 each, or any integral multiple thereof, provided that no Bond shall represent more than one maturity (unless the Bonds are issued as a single bond to a single Purchaser); shall be numbered separately in such manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; and shall bear interest from their date, payable semiannually on the dates set forth in the Purchase Contract, commencing on a date and maturing on dates and in principal amounts set forth and approved in the Purchase Contract executed by the Designated Representative pursuant to Section 11 of this ordinance. The Bonds will bear interest at the rates set forth in the Purchase Contract pursuant to Section 11 of this ordinance. Section 4. Registration, Exchange and Payments. -4- Agenda Packet p. 10 of 158

11 (a) Bond Registrar/Bond Register. A Designated Representative may appoint the Finance Director or the Fiscal Agent as registrar, authenticating agent, paying agent and transfer agent for the Bonds (as so designated, the Bond Registrar ). The Bond Register will keep, or cause to be kept, sufficient records for the registration and transfer of the Bonds (the Bond Register ). The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar s powers and duties under this ordinance. The Bond Registrar is responsible for its representations contained in the Certificate of Authentication on the Bonds. (b) Registered Ownership. The City and the Bond Registrar may deem and treat the Registered Owner of each Bond as the absolute owner for all purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. Payment of any Bond will be made only as described in Section 4(h) hereof, but any Bond may be transferred as herein provided. All payments made as described in Section 4(h) will be valid and will satisfy the liability of the City upon the Bonds to the extent of the amount or amounts so paid. (c) DTC Option/Letter of Representations. The Bonds may be held in fully immobilized form by DTC acting as depository. To induce DTC to accept bonds as eligible for deposit at DTC, the City has heretofore executed and delivered to DTC the Letter of Representations. Neither the City nor the Bond Registrar has any responsibility or obligation to DTC participants or the persons for whom they act as nominees with respect to the Bonds for the accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that is permitted or required to be given to Registered Owners under this ordinance (except such notices as are required to be given by the City to the Bond Registrar or to DTC), the selection by DTC or any DTC participant of any person to receive payment in the event of a partial redemption of the Bonds, or any consent given or other action taken by DTC as the Registered Owner. For so long as any Bonds are held in fully-immobilized form hereunder, DTC or its successor depository will be deemed to be the Registered Owner for all purposes, and all references in this ordinance to the Registered Owners will mean DTC or its nominee and not the owners of any beneficial interest in any Bonds. (d) Use of Depository. (i) If the City elects to have the Bonds held by DTC, the Bonds will be registered in the name of CEDE & Co., as nominee of DTC, with a single Bond for each maturity in a denomination equal to the total principal amount of such maturity. Registered ownership of such immobilized Bonds, or any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its nominee, provided that any such successor must be qualified under any applicable laws to provide the service proposed to be provided by it; (B) to any substitute depository appointed by the City pursuant to subsection (ii) below or such substitute depository s successor; or (C) to any person as provided in subsection (iv) below. -5- Agenda Packet p. 11 of 158

12 (ii) Upon the resignation of DTC or its successor (or any substitute depository or its successor) from its functions as depository or a determination by the City to discontinue the system of book entry transfers through DTC or its successor (or any substitute depository or its successor), the City may appoint a substitute depository. Any such substitute depository must be qualified under any applicable laws to provide the services proposed to be provided by it. (iii) In the case of any transfer pursuant to clause (A) or (B) of subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together with a written request on behalf of the City, issue a single new Bond for each maturity then outstanding, registered in the name of such successor or such substitute depository, or its nominee, all as specified in such written request of the City. (iv) If (A) DTC or its successor (or substitute depository or its successor) resigns from its functions as depository, and no substitute depository can be obtained, or (B) the City determines that it is in the best interest of the beneficial owners of the Bonds that the Bonds be provided in certificated form, the ownership of such Bonds may then be transferred to any person or entity as herein provided, and will no longer be held in fully-immobilized form. The City will deliver a written request to the Bond Registrar, together with a supply of definitive Bonds in certificated form, to issue Bonds in any authorized denomination. Upon receipt by the Bond Registrar of all then outstanding Bonds together with a written request on behalf of the City to the Bond Registrar, new Bonds shall be issued in the appropriate denominations and registered in the names of such persons as are provided in such written request. (e) Transfer or Exchange of Registered Ownership; Change in Denominations. The registered ownership of any Bond may be transferred or exchanged, but no transfer of any Bond will be valid unless it is surrendered to the Bond Registrar with the assignment form appearing on such Bond duly executed by the Registered Owner or such Registered Owner s duly authorized agent in a manner satisfactory to the Bond Registrar. Upon such surrender, the Bond Registrar shall cancel the surrendered Bond and authenticate and deliver, without charge to the Registered Owner or transferee, a new Bond (or Bonds at the option of the new Registered Owner) of the same date, maturity and interest rate and for the same aggregate principal amount in any authorized denomination, naming as Registered Owner the person or persons listed as the assignee on the assignment form appearing on the surrendered Bond, in exchange for the surrendered and cancelled Bond. Any Bond may be surrendered to the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond Registrar is not obligated to transfer or exchange any Bond during the period beginning at the opening of business on the 15 th day of the month next preceding any interest payment date and ending at the close of business on such interest payment date, or, in the case of any proposed redemption of the Bonds, after the mailing of the notice of the redemption. (f) Fiscal Agent s Ownership of Bonds. If the Fiscal Agent serves as Bond Registrar, it may become the Registered Owner of any Bond with the same rights it would have if it were not the Bond Registrar, and to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as member of, or in any other capacity with respect to, any committee formed to protect the right of the Registered Owners of Bonds. Agenda Packet p. 12 of

13 (g) Registration Covenant. The City covenants that, until all Bonds have been surrendered and cancelled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. (h) Place and Medium of Payment. Both principal of and interest on the Bonds are payable in lawful money of the United States of America. Unless otherwise provided in the Purchase Contract, interest on the Bonds will be calculated based on a year of 360 days and twelve 30-day months. For so long as the Finance Director serves as Bond Registrar, payments of principal of and interest on the Bond will be made by check or draft of the Bond Registrar mailed on the date such principal and interest is due, by electronic funds transfer made on such due date to the registered owner at the address appearing on the Bond Register, or by such alternative means as may be specified in the Purchase Contract. Upon final payment of all principal of and interest on the Bonds, the Bonds shall be submitted to the Bond Registrar for cancellation and surrender. For so long as the Fiscal Agent serves as Bond Registrar, payments of principal and interest on Bonds held by DTC will be made in accordance with the operational arrangements of DTC referred to in the Letter of Representations. If the Bonds are no longer held by DTC, the Bonds will be paid by check or draft mailed to the Registered Owners at the addresses for such Registered Owners appearing on the Bond Register on the 15 th day of the month preceding the interest payment date. Principal of the Bonds is payable upon presentation and surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar; provided, however, that if so requested in writing by the Registered Owner of at least $1,000,000 principal amount of Bonds, interest will be paid by wire transfer on the interest payment date to an account with a bank located within the United States. Section 5. Redemption; Purchase of Bonds. (a) Optional Redemption. The Bonds may be subject to optional redemption prior to their stated maturities as set forth in the Purchase Contract approved by the Designated Representative pursuant to Section 11. (b) Mandatory Redemption. If structured as term bonds, the Bonds may be subject to mandatory redemption on a schedule to be set forth in the Purchase Contract. (c) Selection of Bonds for Redemption. As long as the Bonds are held in book-entry only form, the selection of Bonds within a maturity to be redeemed will be made in accordance with the operational arrangements in effect at DTC. If the Bonds are no longer held in bookentry only form, the selection of such Bonds and maturity to be redeemed will be made as provided in this subsection (c). If the City redeems at any one time fewer than all of the Bonds of the same maturity date, the particular Bonds or portions of Bonds of such maturity to be redeemed will be selected by lot (or in such other manner determined by the Bond Registrar) in increments of $5,000. In the case of a Bond of a denomination greater than $5,000, the City and Bond Registrar will treat each Bond as representing such number of separate Bonds each of the -7- Agenda Packet p. 13 of 158

14 denomination of $5,000 as is obtained by dividing the actual principal amount of such Bond by $5,000. If only a portion of the principal sum of a Bond is redeemed, upon surrender of the such Bond at the principal office of the Bond Registrar there will be issued to the Registered Owner, without charge therefor, for the then unredeemed balance of the principal sum thereof, at the option of the Registered Owner, a Bond or Bonds of like maturity and interest rate in any of the denominations herein authorized. (d) Notice of Redemption. (1) Official Notice. Unless alternative notice provisions are set forth in the Purchase Contract, and unless waived by any Registered Owner of Bonds to be redeemed, official notice of any redemption, which notice may be conditional, will be given by the Bond Registrar on behalf of the City by mailing a copy of an official redemption notice by first class mail at least 20 days and not more than 60 days prior to the date fixed for redemption to the Registered Owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. All official notices of redemption will be dated and will state: (A) (B) the redemption date, the redemption price, (C) if fewer than all outstanding Bonds are to be redeemed, the identification by maturity (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed, (D) any condition to an optional redemption, (E) that on the redemption date (unless the notice of redemption is a conditional notice, in which case the notice will state that interest will cease to accrue from the redemption date if and to the extent that any condition has been satisfied and funds have been provided to the Bond Registrar for the redemption of Bonds) the redemption price will become due and payable upon each Bond or portion thereof called for redemption, and that interest thereon will cease to accrue from and after said date, and the redemption price. (F) the place where such Bonds are to be surrendered for payment of On or prior to any redemption date (if any conditions to an optional redemption have been met), the City will deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds that are to be redeemed on that date. (2) Effect of Notice; Bonds Due. Unless the City has given a conditional notice and the conditions for redemption set forth therein are not satisfied, official notice of Agenda Packet p. 14 of

15 redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City defaults in the payment of the redemption price) such Bonds or portions of Bonds will cease to bear interest. Upon surrender of those Bonds for redemption in accordance with the notice, those Bonds shall be paid by the Registrar at the redemption price. Installments of interest due on or prior to the redemption date are payable as herein provided for payment of interest. Upon surrender for any partial redemption of any Bond, there will be prepared for the Registered Owner a new Bond or Bonds of the same maturity in the amount of the unpaid principal. All Bonds that have been redeemed will be canceled and destroyed by the Registrar and may not be reissued. (3) Additional Notice. In addition to the foregoing notice, further notice may be given by the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice will in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder will contain the information required above for an official notice of redemption plus (A) the CUSIP numbers (if any) of all Bonds being redeemed; (B) the date of issue of the Bonds as originally issued; (C) the rate of interest, if any, borne by each Bond being redeemed; (D) the maturity date of each Bond being redeemed; and (E) any other descriptive information needed to identify accurately the Bonds being redeemed. Each further notice of redemption may be sent at least 25 days before the redemption date to each party entitled to receive notice pursuant to Section 14, and to the Purchaser or to its business successor, if any, and to such persons and with such additional information as the Designated Representative deems appropriate, but such mailings are not a condition precedent to the redemption of such Bonds. (4) CUSIP Number. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for that purpose will bear the CUSIP number (if any) identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. (5) Amendment of Notice Provisions. The foregoing notice provisions of this Subsection 5(d), including but not limited to the information to be included in redemption notices and the persons designated to receive notices, may be amended by additions, deletions and changes to maintain compliance with duly promulgated regulations and recommendations regarding notices of redemption of municipal securities. (e) Purchase of Bonds. The City reserves the right to purchase any of the Bonds at any time at a price deemed reasonable by the City. Section 6. Form of Bonds. The Bonds will be in substantially the following form, with such modifications as may be necessary or desirable if the Bonds are privately placed with a single Purchaser: -9- Agenda Packet p. 15 of 158

16 UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF BONNEY LAKE LIMITED TAX GENERAL OBLIGATION BOND, 2017 INTEREST RATE: MATURITY DATE: CUSIP NO.: REGISTERED OWNER: PRINCIPAL AMOUNT: THE CITY OF BONNEY LAKE, WASHINGTON (the City ), a municipal corporation duly organized and existing under the laws of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or registered assigns, on the Maturity Date identified above, the Principal Amount indicated above and to pay interest thereon from the date hereof, or the most recent date to which interest has been paid or duly provided for, until payment of this bond at the Interest Rate set forth above, payable on the first days of each and, commencing on, 20. Both principal of and interest on this bond are payable in lawful money of the United States of America. For so long as the Bonds are held in fully immobilized form, payments of principal and interest thereon will be made as provided in accordance with the operational arrangements of DTC referred to in the Blanket Issuer Letter of Representations from the City to DTC. This bond is one of an authorized issue of bonds of like date and tenor, except as to number, amount, rate of interest and date of maturity, in the aggregate principal amount of $ (the Bonds ), issued to finance the cost of street improvements in the City. The Bonds are issued under and in accordance with the provisions of the Constitution and applicable statutes of the State of Washington and ordinances duly adopted by the City Council, including Ordinance No. (the Bond Ordinance ). Unless otherwise defined in this bond, capitalized terms used herein have the meanings given those terms in the Bond Ordinance. The Bonds are subject to redemption prior to their stated maturities as set forth in the Bond Ordinance and Purchase Contract. The Bonds are not private activity bonds as that term is defined in the Internal Revenue Code of 1986, as amended (the Code ). The Bonds have been designated by the City as qualified tax-exempt obligations within the meaning of Section 265(b) of the Code. The City has irrevocably covenanted for as long as any of the Bonds are outstanding that each year it will include in its budget and levy an ad valorem tax on all taxable property in the City, within and as part of the property taxes authorized by law to be levied by the City without a Agenda Packet p. 16 of

17 vote of the people, in an amount that, together with other lawfully available funds, will be sufficient to pay the principal of and interest on the Bonds as the same become due. The full faith, credit and resources of the City are irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of such principal and interest. The pledge of taxes for payment of the principal of and interest on the Bonds may be discharged prior to maturity of the Bonds by making provisions for the payment thereof on the terms and conditions set forth in the Bond Ordinance. This bond will not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon has been manually signed by or on behalf of the Bond Registrar. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Washington to exist, to have happened, been done and performed precedent to and in the issuance of this bond have happened, been done and performed and that the issuance of this bond and the Bonds does not violate any constitutional, statutory or other limitation upon the amount of bonded indebtedness that the City may incur. IN WITNESS WHEREOF, the City of Bonney Lake, Washington, has caused this bond to be executed by the manual or facsimile signatures of the Mayor and City Clerk and a facsimile of the seal of the City to be imprinted or otherwise reproduced hereon as of, CITY OF BONNEY LAKE, WASHINGTON By: /s/ manual or facsimile Mayor ATTEST: /s/ manual or facsimile City Clerk The Bond Registrar s Certificate of Authentication on the Bonds will be in substantially the following form: Date of Authentication: CERTIFICATE OF AUTHENTICATION This is one of the City of Bonney Lake, Washington, Limited Tax General Obligation Bonds, 2017, dated, 2017, as described in the Bond Ordinance Agenda Packet p. 17 of 158

18 WASHINGTON STATE FISCAL AGENT, Bond Registrar By: /s/ Authorized Signer ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE (Please print or typewrite name and address, including zip code, of Transferee) the within bond and does hereby irrevocably constitute and appoint of, or its successor, as Bond Registrar to transfer said bond on the books kept for registration thereof with full power of substitution in the premises. DATED:,. SIGNATURE GUARANTEED: NOTE: The signature on this Assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Section 7. Execution of Bonds. The Bonds will be executed on behalf of the City with the manual or facsimile signature of the Mayor, attested by the manual or facsimile signature of the City Clerk, and have the seal of the City impressed, imprinted or otherwise reproduced thereon. If any officer who has signed or attested a Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her signature is authenticated or delivered by the Bond Registrar or issued by the City, that Bond nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, will be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Bonds also may be signed on behalf of the City by any person who, on the actual Agenda Packet p. 18 of

19 date of signing of the Bonds, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bonds. Only Bonds that bear a Certificate of Authentication, manually executed by the Bond Registrar, will be valid or obligatory for any purpose or entitled to the benefits of this ordinance. The executed Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. Section 8. Bond Fund; Pledge of Taxes and Credit. There is hereby authorized and directed to be created in the office of the Finance Director a special fund to be drawn upon for the sole purpose of paying the principal of and interest on the Bonds to be known as the Limited Tax General Obligation Bond Redemption Fund, 2017 (the Bond Fund ). The taxes hereafter levied for the purpose of paying principal of and interest on the Bonds and other funds to be used to pay the Bonds must be deposited in the Bond Fund no later than the date such funds are required for the payment of principal of and interest on the Bonds. Money in the Bond Fund not needed to pay the interest or principal next coming due may temporarily be deposited in such institutions or invested in such obligations as may be lawful for the investment of City funds. Any interest or profit from the investment of such money must be deposited in the Bond Fund. The City hereby irrevocably covenants for as long as any of the Bonds are outstanding that each year it will include in its budget and levy an ad valorem tax on all taxable property in the City, within and as part of the property taxes authorized by law to be levied by the City without a vote of the people, in an amount that, together with other lawfully available funds, will be sufficient to pay the principal of and interest on the Bonds as the same become due. All of such taxes so collected and any other money to be used for such purposes shall be paid into the Bond Fund. The City hereby irrevocably pledges that a sufficient portion of each annual levy to be levied and collected by the City prior to the full payment of the principal and interest on the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment of the principal of and interest on the Bonds. The full faith, credit and resources of the City are hereby irrevocably pledged for the annual levy and collection of such taxes and for the prompt payment of the principal of and interest on the Bonds as the same become due. Section 9. Defeasance. If money and/or Government Obligations maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money, if necessary) sufficient to redeem and retire part or all of the Bonds in accordance with their terms, are set aside in a special account of the City to effect such redemption and retirement, and such money and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so provided for, and such Bonds shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the money so set aside and pledged, and such Bonds shall be deemed not to be outstanding hereunder Agenda Packet p. 19 of 158

20 The City will give written notice of defeasance to the owners of all Bonds so provided for and to each party entitled to receive notice in accordance with any undertaking entered into pursuant to Section 13 of this ordinance. Section 10. Tax Covenants; Special Designation. The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City that may be deemed to be proceeds of the Bonds pursuant to Section 148 of the Code that will cause the Bonds to be arbitrage bonds within the meaning of said section and said regulations. The City will comply with the requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) and the applicable regulations thereunder throughout the term of the Bonds. The City further covenants that it will not take any action or permit any action to be taken that would cause the Bonds to constitute private activity bonds under Section 141 of the Code. The City hereby designates the Bonds as qualified tax-exempt obligations within the meaning of Section 265(b)(3) of the Code. The City does not anticipate issuing more than $10,000,000 in qualified tax-exempt obligations during Section 11. Sale of Bonds. (a) Parameters. It is in the City s best interest to provide flexibility for marketing the Bonds. Accordingly, the Council wishes to delegate to the City Administrator and Finance Director the authority to complete the sale of the Bonds by authorizing each to act as the City s designated representative in accordance with RCW (2). In accordance with this grant of authority, a Designated Representative may determine whether the Bonds will be sold by negotiated underwriting or private placement and approve final terms for the Bonds, including delivery date, payment dates, interest rates, aggregate principal amount and maturity amounts (including the designation of any term bonds), redemption provisions, and provisions for bond insurance, and certain other terms for the Bonds, within the following parameters: the aggregate principal amount of the Bonds does not exceed $4,800,000, the maximum term for the Bonds does not exceed 22 years, the Bonds are subject to optional redemption at a price of par no later than the date that is 10½ years following the date of issuance of the Bonds, the Bonds are sold (in the aggregate) at a price not less than 95% and not greater than 125%, the true interest cost for the Bonds (in the aggregate) does not exceed 4.50%, and the Bonds conform to all other terms of this ordinance. (b) Procedure for Negotiated Underwriting or Private Placement. A Designated Representative is authorized to determine whether the Bonds are sold by negotiated underwriting or private placement. Subject to the terms and conditions listed in subsection (a), above, a Agenda Packet p. 20 of

21 Designated Representative is hereby authorized to execute a Purchase Contract that incorporates these terms and to deliver the Purchase Contract to the Purchaser. The signature of one Designated Representative is sufficient to bind the City. Following the execution of a Purchase Contract, a Designated Representative will provide a report to the Council, describing the final terms of the Bonds approved pursuant to the authority delegated in this ordinance. The report will be provided to the Council no later than at its next regularly scheduled meeting. The authority granted to the Designated Representatives by this Section 11 expires on January 1, If no Purchase Contract for the Bonds has been executed on or prior to January 1, 2018, the authorization for the issuance of the Bonds is rescinded, and the Bonds authorized under this ordinance may not be issued nor their sale approved unless the Bonds are re-authorized by ordinance. The ordinance re-authorizing the issuance and sale of the Bonds may be in the form of a new ordinance repealing this ordinance in whole or in part or may be in the form of an amendatory ordinance approving a purchase contract or establishing terms and conditions for the authority delegated under this Section 11. The Designated Representative and other City officials, agents and representatives are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bonds to the Purchaser and for the proper application and use of the proceeds of sale of the Bonds. In furtherance of the foregoing, the Designated Representative is authorized to approve and enter into agreements for the payment of costs of issuance, including underwriter s discount, the fees and expenses specified in the Purchase Contract, including fees and expenses of Purchaser and other retained services, including Bond Counsel, rating agencies, fiscal agency, escrow agent, verification agent, financial advisory services, escrow structuring services and other expenses customarily incurred in connection with issuance and sale of bonds. (c) Preliminary and Final Official Statements. If the Bonds are sold in an underwriting, the Designated Representatives are hereby authorized to review and approve on behalf of the City the preliminary and final Official Statements for the Bonds with such additions and changes as may be deemed necessary or advisable to them. A Designated Representative is hereby further authorized to deem final the preliminary Official Statement for purposes of SEC Rule 15c2-12. (d) Bond Insurance. The Designated Representatives are hereby also authorized to consider proposals from bond insurers and determine whether the use of bond insurance is economically advantageous to the City. If the Designated Representatives determine to obtain bond insurance, a Designated Representative is authorized to execute a commitment for insurance. Section 12. Application of Proceeds of Bonds. An account within the Street Construction Fund to be designated as the SR 410/204th Project Account (the Project Account ) is hereby authorized to be created in the office of the Finance Director. At the time of delivery of the Bonds, proceeds of the Bonds shall be deposited in the Project Fund and used to pay costs of the Project and costs of issuance of the Bonds Agenda Packet p. 21 of 158

22 Section 13. Undertaking to Provide Ongoing Disclosure. If the Bonds are sold in an underwriting that is subject to Section (b)(5) of the Rule, a Designated Representative is authorized to execute and deliver a certificate or agreement constituting an undertaking for ongoing disclosure for the benefit of the holders of those Bond to permit the Purchaser to comply with the Rule. Section 14. Lost or Destroyed Bonds. If any Bonds are lost, stolen or destroyed, the Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, maturity and tenor to the Registered Owner upon such Registered Owner s paying the expenses and charges of the Bond Registrar and the City in connection with preparation and authentication of the replacement Bond or Bonds and upon his or her filing with the Bond Registrar and the City evidence satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or her ownership, and upon furnishing the City and the Bond Registrar with indemnity satisfactory to both. Section 15. General Authorization. The appropriate officials, agents and representatives of the City are authorized to take any actions and to execute any certificates, agreements or other documents as in their judgment may be necessary or desirable to carry out the terms of, and complete the transactions contemplated by, this ordinance. All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby ratified and confirmed. Section 16. Severability. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City is declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be deemed separable from the remaining covenants and agreements of this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds. Section 17. Effective Date. This ordinance becomes effective five days after its passage and publication, as required by law. PASSED by the City Council of the City of Bonney Lake, Washington, at a regular meeting thereof, held on, CITY OF BONNEY LAKE, WASHINGTON By: Mayor ATTEST: City Clerk -16- Agenda Packet p. 22 of 158

23 CERTIFICATE I, the undersigned, City Clerk of the City of Bonney Lake, Washington, (the City ) and keeper of the records of the City Council (the Council ), DO HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance No. of the City (the Ordinance ), duly passed at a regular meeting of the City Council held on, That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the Ordinance have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand this, City Clerk Agenda Packet p. 23 of 158

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41 City of Bonney Lake, Washington City Council Agenda Bill (AB) Department/Staff Contact: Public Services / Jason Sullivan Agenda Item Type: Ordinance Meeting/Workshop Date: March 21, 2017 Ordinance/Resolution Number: Ordinance No. D17-07 Agenda Bill Number: AB17-07 Councilmember Sponsor: Donn Lewis Agenda Subject: Annexing the Kelly Creek Vista and Delany Potential Annexation Areas into the City of Bonney Lake Full Title/Motion: An Ordinance of the City Council of the City of Bonney Lake, Pierce County, Washington, annexing certain real property, identified as the Kelly Creek Vista Potential Annexation Area and the Delany Potential Annexation Area into the City of Bonney Lake pursuant to Revised Code of Washington (RCW) 35A Administrative Recommendation: Background Summary: Ordinance No. D17-07 will officially annex the Kelly Creek Vista and the Delany Potential Annexation Areas into the City of Bonney Lake. Action on Ordinance No. D17-07 can occur following the public hearing and the City Council s approval of Resolution 2575 authorizing the Mayor to sign the Annexation Interlocal Agreement and MOU. The annexation would be effective fortyfive (45) days from the date of adoption of Ordinance D17-07 Attachments: Ordinance No. D17-07 BUDGET INFORMATION Budget Amount Current Balance Required Expenditure Budget Balance Budget Explanation: COMMITTEE, BOARD & COMMISSION REVIEW Council Committee Review: Approvals: Date: Chair/Councilmember Commission/Board Review: Hearing Examiner Review: Councilmember Councilmember Forward to: Consent Agenda: Yes No Yes No Workshop Date(s): 1/20/15, 2/7/2017 Meeting Date(s): 1/27/15, 3/14/2017 COUNCIL ACTION Public Hearing Date(s): 3/14/2017 Tabled to Date: 3/21/2017 Director: John P. Vodopich, AICP Mayor: APPROVALS Date Reviewed by City Attorney: (if applicable): Agenda Packet p. 41 of 158

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43 ORDINANCE NO AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, PIERCE COUNTY, WASHINGTON, ANNEXING CERTAIN REAL PROPERTY, IDENTIFIED AS THE KELLY CREEK VISTA POTENTIAL ANNEXATION AREA AND THE DELANY POTENTIAL ANNEXATION AREA, INTO THE CITY OF BONNEY LAKE, PURSUANT TO REVISED CODE OF WASHINGTON (RCW) 35A WHEREAS, Vision 2040 has the goal that unincorporated lands within the urban growth area will be annexed into existing cities; and WHEREAS, the Pierce County Regional Council (PCRC) was created in 1992 by an Interlocal Agreement among the cities and towns of Pierce County and Pierce County, and charged with responsibilities, including, but not limited to: Serving as a local link to the Puget Sound Regional Council, promoting intergovernmental cooperation, facilitating compliance with the Growth Management Act (GMA) and the Multi-County Planning Policies, and developing a consensus among jurisdictions regarding the development and modification of the Countywide Planning Policies; and WHEREAS, the Pierce County Countywide Planning Policies (CPPs) are written policy statements which are to be used solely for establishing a countywide framework from which the County and County municipal comprehensive plans are developed and adopted; and WHEREAS, the Pierce County CPPs identify unincorporated islands as the highest priority for annexation; and WHEREAS, RCW 35A allows Pierce County to enter into an Interlocal Agreement with a city to annex an area within its Potential Annexation Areas (PAAs) when at least sixty percent (60%) of the boundary of the area is contiguous with a city; and WHEREAS, RCW 35A (1) allows either the legislative body of a county or code city to initiate an annexation process by adopting a resolution commencing negotiations for an Interlocal Agreement; and WHEREAS, the City of Bonney Lake passed Resolution 2427 on January 15, 2015, directing City staff to negotiate an Interlocal Agreement with Pierce County to annex properties within its designated Potential Annexation Area(s); and Page 1 of 3 Agenda Packet p. 43 of 158

44 and WHEREAS, the proposed annexation areas meet the requirements of RCW 35A ; WHEREAS, the City hosted, and county staff attended, a public open house on the annexation on March 9, 2016; and WHEREAS, the City staff and County staff completed its negotiations in May 2016; and WHEREAS, RCW 35A requires a public hearing to be held by each legislative body, separately or jointly, before the agreement is executed; and WHEREAS, RCW 35A requires that each legislative body holding a public hearing shall, separately or jointly, publish the agreement at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the territory proposed for annexation; and WHEREAS, the annexation agreement published the proposed agreement twice during the period of November 2, 2016 and November 9, 2016 in the Courier-Herald; and WHEREAS, the Pierce County Council held a public hearing on November 29, 2016; and WHEREAS, the City of Bonney held a public hearing on March 14, 2017; and and WHEREAS, the City provided notice of the public hearing to all affected property owners; WHEREAS, on, the Bonney Lake City Council adopted Resolution 2575 authorizing the Mayor to sign the Annexation Interlocal Agreement and the Memorandum of Understanding (MOU) related to the transfer of governmental services; and WHEREAS, the City Council adopted Ordinance 1110 establishing a future land use designation of Single Family Residential and a zoning classification of Single Family Residential (R-1); and WHEREAS, annexation actions are exempt from the application of the State Environmental Policy Act (RCW 43.21C.222); and WHEREAS, the Bonney Lake City Council has determined that the health, welfare and safety of the people of the City of Bonney Lake will be best served if said territory is annexed for city municipal purposes and assigned a zoning designation of public facilities. Agenda Packet p. 44 of 158 Page 2 of 3

45 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. The real property within the Kelly Creek Vista PAA described in Exhibit A and depicted on Exhibit B attached hereto and incorporated herein by reference, is hereby annexed to the City of Bonney Lake pursuant to RCW 35A Section 2. The real property within the Delany PAA described in Exhibit C and depicted on Exhibit D attached hereto and incorporated herein by reference, is hereby annexed to the City of Bonney Lake pursuant to RCW 35A Section 3. Staff is direct to bring back an Ordinance officially adopting a zoning classifications for the property located with the Kelly Creek Vista PAA and Delany PAA prior to the effective date of the annexation. Section 4. All property within the territory hereby annexed shall be assessed and taxed at the same rate and on the same basis as other property within the City of Bonney Lake, including all indebtedness existing as of the effective date of the annexation. Section 5. This Ordinance shall take effect and be in force forty-five (45) days from the date that Interlocal Annexation Agreement approved under Resolution 2575 is fully executed by Pierce County and the City of Bonney Lake, as required by law. PASSED BY THE CITY COUNCIL this 21st day of, March AUTHENTICATED: Harwood Edvalson, MMC, City Clerk Neil Johnson, Jr., Mayor APPROVED AS TO FORM: Kathleen Haggard, City Attorney Page 3 of 3 Agenda Packet p. 45 of 158

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51 C i t y o f B o n n e y L a k e West Tapps Hwy. E. Pierce County WASHINGTON Kelly Creek Vista Annexation Church Lake Rd. E. Legend Kelly Creek Vista PAA Boundaries I The map features are approximate and are intended only to provide an indication of said feature. Additional areas that have not been mapped may be present. This is not a survey. Orthophotos and other data may not align. The County assumes no liability for variations ascertained by actual survey. ALL DATA IS EXPRESSLY PROVIDED AS IS AND WITH ALL FAULTS. The County makes no warranty of fitness for a particular purpose. Feet Community Development Department Agenda Packet p. 51 of 158

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53 EXHIBIT C DELANY PAA ANNEXATION A PORTION OF GOVERNMENT LOT 1 IN THE NORTHEAST QUARTER OF SECTION 2, TOWNSHIP 19 NORTH, RANGE 5 EAST, W.M., IN PIERCE COUNTY, WASHINGTON, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING ON THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. 903, RECORDS OF SAID COUNTY, BEING AT THE SOUTHEAST CORNER OF SAID GOVERNMENT LOT 1, ALSO BEING THE SOUTHEAST CORNER OF TRACT C OF THE REPLAT OF VIEW ROYAL ESTATES AS RECORDED UNDER RECORDING NUMBER , RECORDS OF SAID COUNTY; THENCE NORTH ALONG SAID CITY LIMIT S LINE AND THE EAST LINE OF SAID LOT 1 AND THE EAST LINE OF SAID TRACT C TO THE SOUTHERLY MARGIN OF SR 410; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE, WESTERLY ALONG SAID SOUTHERLY MARGIN TO THE NORTHEAST CORNER OF LOT 1 OF PIERCE COUNTY SHORT PLAT AS RECORDED UNDER RECORDING NUMBER RECORDS OF SAID COUNTY AND THE WESTERLY MARGIN OF 229 TH AVE EAST; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE, SOUTH ALONG SAID WESTERLY MARGIN TO THE NORTHEAST CORNER OF LOT 20 OF SAID REPLAT OF VIEW ROYAL ESTATES; THENCE LEAVING SAID CITY LIMIT S LINE, EASTERLY ALONG THE NORTH LINE EXTENDED OF SAID LOT 20 TO THE SOUTHWEST CORNER OF TRACT B OF SAID REPLAT; THENCE CONTINUING EASTERLY ALONG THE SOUTHERLY LINE OF SAID TRACT B AND TRACT C OF SAID REPLAT TO THE SOUTHEAST CORNER OF SAID TRACT C AND THE POINT OF BEGINNING. Page 1 of 1 Agenda Packet p. 53 of 158

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55 C i t y o f B o n n e y L a k e SR-410 Pierce County WASHINGTON Delany Annexation 229th Ave. E. Legend Delany PAA Boundaries I The map features are approximate and are intended only to provide an indication of said feature. Additional areas that have not been mapped may be present. This is not a survey. Orthophotos and other data may not align. The County assumes no liability for variations ascertained by actual survey. ALL DATA IS EXPRESSLY PROVIDED AS IS AND WITH ALL FAULTS. The County makes no warranty of fitness for a particular purpose. Feet Community Development Department Agenda Packet p. 55 of 158

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57 City of Bonney Lake, Washington City Council Agenda Bill (AB) Department/Staff Contact: Public Services / Jason Sullivan Agenda Item Type: Resolution Meeting/Workshop Date: March 21, 2017 Ordinance/Resolution Number: Resolution 2575 Agenda Bill Number: AB17-06 Councilmember Sponsor: Donn Lewis Agenda Subject: Authorizing the Mayor to Sign the Annexation Agreement and Memorandum of Understanding with Pierce County for the Kelly Creek Vista and Delany Annexation Areas Full Title/Motion: A Resolution of the City Council of the City of Bonney Lake, Pierce County, Washington authorizing the City of Bonney Lake Mayor to sign the Interlocal Agreement with the Pierce County regarding the annexation of an unincorporated urban area(s) utilizing the procedures set forth in Revised Code of Washington (RCW) 35A and authorizing the Mayor to enter into a Memorandum of Understanding regarding the transition of governmental services related to said annexation Administrative Recommendation: Background Summary: The City Council passed Resolution 2427 directing City staff to begin the negotiation of an Interlocal Agreement with Pierce County in order to annex the Delany and the Kelly Creek Vista Potential Annexation Areas as authorized by RCW 35A On November 29, 2016, the Pierce County Council adopted Ordinance No s authorizing the Pierce County Executive to sign the Annexation Interlocal Agreement and the Memorandum of Understanding (MOU) related to the transfer of governmental services. Following the hearing the City Council can adopt Resolution 2575 authorizing the Mayor to sign the Annexation Interlocal Agreement and MOU. The annexation would be effective forty-five (45) days from the date of adoption of Ordinance D17-07 Attachments: Resolution 2427, RCW 35A , Ordinance No s, Pierce County Transmittal Letter, Resolution BUDGET INFORMATION Budget Amount Current Balance Required Expenditure Budget Balance Budget Explanation: COMMITTEE, BOARD & COMMISSION REVIEW Council Committee Review: Approvals: Date: Chair/Councilmember Commission/Board Review: Hearing Examiner Review: Councilmember Councilmember Forward to: Consent Agenda: Yes No Yes No Workshop Date(s): 1/20/2015; 2/7/2017 Meeting Date(s): 1/27/2015; 3/14/2017 COUNCIL ACTION Public Hearing Date(s): 3/14/2017 Tabled to Date: 3/21/2017 Director: John P. Vodopich, AICP Mayor: APPROVALS Date Reviewed by City Attorney: (if applicable): Agenda Packet p. 57 of 158

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59 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, PIERCE COUNTY, WASHINGTON AUTHORIZING THE CITY OF BONNEY LAKE MAYOR TO SIGN THE INTERLOCAL AGREEMENT WITH THE PIERCE COUNTY REGARDING THE ANNEXATION OF AN UNINCORPORATED URBAN AREA(S) UTILIZING THE PROCEDURES SET FORTH IN REVISED CODE OF WASHINGTON (RCW) 35A AND AUTHORIZING THE MAYOR TO ENTER INTO A MEMORANDUM OF UNDERSTANDING REGARDING THE TRANSITION OF GOVERNMENTAL SERVICES RELATED TO SAID ANNEXATION. WHEREAS, Vision 2040 has the goal that unincorporated lands within the urban growth area will be annexed into existing cities; and WHEREAS, the Pierce County Regional Council (PCRC) was created in 1992 by an interlocal agreement among the cities and towns of Pierce County and Pierce County, and charged with responsibilities, including, but not limited to: Serving as a local link to the Puget Sound Regional Council, promoting intergovernmental cooperation, facilitating compliance with the Growth Management Act (GMA) and the Multi-County Planning Policies, and developing a consensus among jurisdictions regarding the development and modification of the Countywide Planning Policies; and WHEREAS, the Pierce County Countywide Planning Policies (CPPs) are written policy statements which are to be used solely for establishing a countywide framework from which the County and County municipal comprehensive plans are developed and adopted; and WHEREAS, the Pierce County CPPs identify unincorporated islands as the highest priority for annexation; and WHEREAS, RCW 35A allows Pierce County to enter into an interlocal agreement with a city to annex an area within its Potential Annexation Areas (PAAs) when at least sixty percent (60%) of the boundary of the area is contiguous with a city; and Page 1 of 3 Agenda Packet p. 59 of 158

60 WHEREAS, RCW 35A (1) allows either the legislative body of a county or code city to initiate an annexation process by adopting a resolution commencing negotiations for an interlocal agreement; and WHEREAS, the City of Bonney Lake passed Resolution 2427 on January 15, 2015, directing City staff to negotiate an interlocal agreement with Pierce County to annex properties within its designated Potential Annexation Area(s); and WHEREAS, the proposed annexation areas meet the requirements of RCW 35A ; and WHEREAS, the City hosted, and county staff attended, a public open house on the annexation on March 9, 2016; and WHEREAS, the City staff and County staff completed its negotiations in May 2016; and WHEREAS, RCW 35A requires a public hearing to be held by each legislative body, separately or jointly, before the agreement is executed; and WHEREAS, RCW 35A requires that each legislative body holding a public hearing shall, separately or jointly, publish the agreement at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the territory proposed for annexation; and WHEREAS, the annexation agreement published the proposed agreement twice during the period of November 2, 2016 and November 9, 2016 in the Courier-Herald; and WHEREAS, the Pierce County Council held a public hearing on November 29, 2016; and WHEREAS, the City of Bonney held a public hearing on March 14, 2017; and WHEREAS, the City provided notice of the public hearing to all affected property owners; and WHEREAS, the City Council adopted Ordinance 1110 establishing a future land use designation of Single Family Residential and a zoning classification of Single Family Residential (R-1); and WHEREAS, annexation actions are exempt from the application of the State Environmental Policy Act (RCW 43.21C.222). Agenda Packet p. 60 of 158 Page 2 of 3

61 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, WASHINGTON DOES HEREBY RESOLVE AS FOLLOWS: The City of Bonney Lake City Council hereby authorizes the Mayor of the City of Bonney Lake to enter into an Interlocal Annexation Agreement, substantially in the same form as Exhibit A attached hereto and incorporated herein by reference, with Pierce County for the annexation of territory pursuant to RCW 35A BE IT FURTHER RESOLVED, the City of Bonney Lake City Council hereby authorizes the Mayor of the City of Bonney Lake to enter in a Memorandum of Understanding regarding the transition of governmental services associated with the Interlocal Annexation Agreement described above. Said Memorandum of Understanding, which is substantially in the form as shown in Exhibit B, is attached hereto and incorporated herein by reference. PASSED by the City Council and approved by the Mayor this 21st day of, March AUTHENTICATED: Harwood Edvalson, MMC, City Clerk Neil Johnson, Jr., Mayor APPROVED AS TO FORM: Kathleen Haggard, City Attorney Page 3 of 3 Agenda Packet p. 61 of 158

62 Agenda Packet p. 62 of 158 THIS PAGE INTENTIONALLY LEFT BLANK

63 KELLY CREEK VISTA AND DELANY ANNEXATION AGREEMENT BETWEEN THE CITY OF BONNEY LAKE and PIERCE COUNTY THIS INTERLOCAL AGREEMENT, hereinafter referred to as the Agreement, is entered into under the authority of Chapter RCW and RCW 35A effective on the day of, 2017 by and between the City of Bonney Lake, a Washington municipal corporation (hereinafter referred to as the City ) and Pierce County, a Washington municipal corporation (hereinafter referred to as the County ), subject to the terms and conditions set forth herein. RECITALS WHEREAS, the City desires to annex the identified Potential Annexation Areas (hereinafter referred to as PAA ) into the City utilizing the annexation method provided in RCW 35A ; WHEREAS, RCW 35A allows the City of Bonney Lake and Pierce County to enter into an Interlocal Agreement to annex the City s affiliated PAAs when at least sixty percent (60%) of the boundary of the area to be annexed are contiguous to the corporate boundary of the City and the area is within the City s PAAs; WHEREAS, the Kelly Creek Vista and Delany PAAs are within the City s PAA, and more than sixty percent (60%) of its boundary is contiguous with the City of Bonney Lake s boundary; WHEREAS, the City Council passed Resolution 2427 on January 15, 2015 directing City staff to negotiate an Interlocal Agreement with Pierce County to annex the two PAAs subject to this Agreement as required by 35A (1); WHEREAS, annexation of the two PAAs subject to this Agreement is exempt from compliance with the requirements of the State Environmental Policy Act pursuant to RCW 43.21C.222; Exhibit A to Ordinance No s Page 1 of 9 Agenda Packet p. 63 of 158

64 WHEREAS, the annexation ordinances provided for in RCW 35A are subject to referendum within forty-five days after adoption; WHEREAS, after the expiration of the forty-fifth day from, but excluding the date of adoption of the annexation ordinance, if no timely and sufficient referendum petition has been filed, the area annexed shall become a part of the City of Bonney Lake; WHEREAS, the City and County have published notice of adoption of this agreement as required by RCW 35A (3); WHEREAS, the City will publish notice of the proposed effective date of the annexation, together with a description of the property to be annexed as required by RCW 35A (4); WHEREAS, the Bonney Lake City Council has enacted Ordinance Number on authorizing the Mayor to enter into this Agreement; and WHEREAS, the Pierce County Council has enacted Ordinance Number on authorizing the County Executive to enter into this Agreement. WHEREAS, the Bonney Lake City Council held a public hearing pursuant to RCW 35A (3) on [date], and the Pierce County Council held a public hearing on [date]. NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: AGREEMENT SECTION 1. ANNEXATION AREAS 1.1 Annexation. The County and City agree that the two PAAs identified in this section shall be annexed into the City following the adopting of an ordinance by the City providing for such annexation pursuant to RCW 35A The annexation date fixed by ordinance shall not be fewer than forty-five (45) days from the date of adoption of the ordinance pursuant to RCW 35A (4). 1.2 Kelly Creek Vista PAA. The Kelly Creek Vista PAA is legal defined as: Agenda Packet p. 64 of 158 Exhibit A to Ordinance No s Page 2 of 9

65 THOSE PORTIONS OF THE NORTHEAST QUARTER OF SECTION 33 AND THE NORTHWEST QUARTER AND NORTHEAST QUARTER OF SECTION 34, ALL IN TOWNSHIP 20 NORTH, RANGE 5 EAST, W.M. IN PIERCE COUNTY, WASHINGTON, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33, SAID CORNER BEING AT THE CITY LIMIT S LINE OF THE CITY OF BONNEY LAKE AS ESTABLISHED BY ORDINANCE NO. 109, RECORDS OF SAID COUNTY; THENCE SOUTH ALONG SAID CITY LIMIT S LINE AND THE WEST LINE OF SAID SUBDIVISION, FEET MORE OR LESS TO A POINT ON THE NORTHERLY LINE OF THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISH BY RESOLUTION R98-154; SAID POINT BEING AN ANGLE POINT IN TRACT A OF THE PLAT OF MOUNTAIN VISTA PUD AS RECORDED UNDER RECORDING NO RECORDS OF SAID COUNTY; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE SOUTHEASTERLY ALONG THE EASTERLY BOUNDARY LINE OF SAID PLAT TO THE NORTHWESTERLY MARGIN OF CHURCH LAKE ROAD; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE PERPENDICULAR TO SAID MARGIN SOUTHEASTERLY TO THE SOUTHEASTERLY MARGIN OF SAID CHURCH LAKE ROAD; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE AND SAID SOUTHEASTERLY MARGIN, SOUTHWESTERLY TO THE INTERSECTION WITH THE WEST LINE OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33; SAID LINE BEING COMMON WITH THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY RESOLUTION 3116 RECORDS OF SAID COUNTY; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE SOUTH ALONG SAID WEST LINE TO THE SOUTHWEST CORNER OF SAID SUBDIVISION; SAID CORNER BEING COMMON TO THE SOUTHWEST CORNER OF TRACT B OF KELLY CREEK VISTA II, AS RECORDED UNDER RECORDING NO , RECORDS OF SAID COUNTY; THENCE LEAVING SAID CITY LIMIT S LINE, EAST ALONG THE SOUTH LINE OF SAID SUBDIVISION AND THE SOUTH LINE OF SAID TRACT B TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33; THENCE CONTINUING EAST ALONG THE SOUTH LINE OF THE NORTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 34 TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 34; SAID CORNER BEING COMMON TO THE SOUTHWEST CORNER OF LOT 1 OF PIERCE COUNTY SHORT PLAT RECORDED UNDER RECORDING NO RECORDS OF SAID COUNTY; THENCE SOUTHEASTERLY ALONG THE SOUTH LINE OF SAID LOT 1 TO THE SOUTHEAST CORNER THEREOF; THENCE Exhibit A to Ordinance No s Page 3 of 9 Agenda Packet p. 65 of 158

66 NORTHEASTERLY ALONG THE EAST LINE OF SAID LOT 1 TO THE SOUTHERLY MARGIN OF CHURCH LAKE ROAD AND THE INTERSECTION WITH THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO RECORDS OF SAID COUNTY; THENCE ALONG SAID CITY LIMIT S LINE AND SAID SOUTHERLY MARGIN NORTHWESTERLY, NORTHERLY AND WESTERLY TO THE NORTHEAST CORNER OF THE PLAT OF KELLY CREEK VISTA AS RECORDED UNDER RECORDING NO RECORDS OF PIERCE COUNTY AND THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. NUMBER 560; THENCE ALONG SAID CITY LIMIT S LINE SOUTHERLY ALONG THE EAST LINE OF SAID PLAT TO THE SOUTHEAST CORNER OF LOT 26 OF SAID PLAT; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE WESTERLY ALONG THE SOUTHERLY LINE OF LOT 26 AND ITS WESTERLY EXTENSION TO THE SOUTHEAST CORNER OF LOT 25 OF SAID PLAT; THENCE CONTINUING WESTERLY ALONG SAID CITY LIMIT S LINE AND THE SOUTHERLY LINES OF LOTS 25, 24, 23, 22, 21 AND 20 TO THE WEST LINE OF SAID PLAT AND THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE NORTH ALONG THE WEST LINE OF SAID PLAT AND THE EAST LINE OF SAID SUBDIVISION TO THE NORTHEAST CORNER OF SECTION 33, TOWNSHIP 20 NORTH, RANGE 5 EAST W.M. AND TO THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. 109; THENCE WEST ALONG SAID CITY LIMIT S LINE AND THE NORTH LINE OF SAID SECTION 33 TO NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33 AND THE TRUE POINT OF BEGINNING. 1.3 Delany PAA. The Kelley Creek Vista PAA is legal defined as: A PORTION OF GOVERNMENT LOT 1 IN THE NORTHEAST QUARTER OF SECTION 2, TOWNSHIP 19 NORTH, RANGE 5 EAST, W.M., IN PIERCE COUNTY, WASHINGTON, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING ON THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. 903, RECORDS OF SAID COUNTY, BEING AT THE SOUTHEAST CORNER OF SAID GOVERNMENT LOT 1, ALSO BEING THE SOUTHEAST CORNER OF TRACT C OF THE REPLAT OF VIEW ROYAL ESTATES AS RECORDED UNDER RECORDING NUMBER , RECORDS OF SAID COUNTY; THENCE NORTH ALONG SAID CITY LIMIT S LINE AND THE EAST LINE OF SAID LOT 1 AND THE EAST LINE OF SAID TRACT C TO THE SOUTHERLY MARGIN OF SR 410; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE, Agenda Packet p. 66 of 158 Exhibit A to Ordinance No s Page 4 of 9

67 WESTERLY ALONG SAID SOUTHERLY MARGIN TO THE NORTHEAST CORNER OF LOT 1 OF PIERCE COUNTY SHORT PLAT AS RECORDED UNDER RECORDING NUMBER RECORDS OF SAID COUNTY AND THE WESTERLY MARGIN OF 229TH AVE EAST; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE, SOUTH ALONG SAID WESTERLY MARGIN TO THE NORTHEAST CORNER OF LOT 20 OF SAID REPLAT OF VIEW ROYAL ESTATES; THENCE LEAVING SAID CITY LIMIT S LINE, EASTERLY ALONG THE NORTH LINE EXTENDED OF SAID LOT 20 TO THE SOUTHWEST CORNER OF TRACT B OF SAID REPLAT; THENCE CONTINUING EASTERLY ALONG THE SOUTHERLY LINE OF SAID TRACT B AND TRACT C OF SAID REPLAT TO THE SOUTHEAST CORNER OF SAID TRACT C AND THE POINT OF BEGINNING. SECTION 2. GOVERNMENTAL SERVICES 2.1 Transition of Governmental Services. The transition of governmental services is provided for in the Kelly Creek and Delany Annexation Memorandum of Understanding, as set forth in Exhibit B to Pierce County Ordinance No SECTION 3. TERM 3.1 Duration. This Agreement shall remain in effect for five (5) years after the Annexation Date. 3.2 Termination Either Party may terminate the Agreement upon ninety (90) days advance written notice to the other party. Notwithstanding the expiration or earlier termination of the Agreement, the County and City shall remain responsible for fulfilling any outstanding obligations under this Agreement that were incurred prior to the date on which the Agreement expired or terminated This Agreement shall be terminated immediately if a referendum petition is filed within the allotted time period and the resulting annexation vote defeats the proposed annexation(s). Exhibit A to Ordinance No s Page 5 of 9 Agenda Packet p. 67 of 158

68 SECTION 4. GENERAL PROVISIONS 4.1 Notices, Demands and Communications. Formal notices, demands, and communications between the City and the County shall be sufficient if given and shall not be deemed given unless dispatched by certified mail, postage prepaid, returned receipt requested, or delivered personally, to the principal offices of the City and the County as follows: City: Mayor City of Bonney Lake PO Box 7380 Bonney Lake, WA County: Office of the Pierce County Executive County-City Building, Room Tacoma Avenue South Tacoma, WA Director: Pierce County Planning and Land Services Public Services Building 2401 South 35th Street, Room 175 Tacoma WA Indemnification and Defense Pierce County shall defend, indemnify, and save harmless Bonney Lake, its officers, employees, and agents from any and all costs, claims, judgments, and awards of damages, resulting from the sole negligence of the County, its officers, employees, or agents associated with this agreement. In executing this agreement, the County does not assume liability or responsibility for or release Bonney Lake from any liability or responsibility to the extent that such liability or responsibility arises from the existence or effect of a Bonney Lake ordinance, rule, regulation, resolution, custom, policy, or practice. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such Bonney Lake ordinance, rule, regulation, resolution, custom, policy, or practice is at issue, Bonney Lake shall defend the same at its sole expense and if judgment is entered or damages awarded against Bonney Lake, the County or both, Bonney Lake shall satisfy the same, including all chargeable costs and attorney fees. Agenda Packet p. 68 of 158 Exhibit A to Ordinance No s Page 6 of 9

69 4.2.2 Bonney Lake shall defend, indemnify, and save harmless Pierce County, its officers, employees, and agents from any and all costs, claims, judgments, and awards of damages, resulting from the sole negligence of Bonney Lake, its officers, employees, or agents associated with this agreement. In executing this agreement, Bonney Lake does not assume liability or responsibility for, or release Pierce County from, any liability or responsibility to the extent that such liability or responsibility arises from the existence or effect of a Pierce County ordinance, rule, regulation, resolution, custom, policy, or practice. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such Pierce County ordinance, rule, regulation, resolution, custom, policy, or practice is at issue, Pierce County shall defend the same at its sole expense and if judgment is entered or damages awarded against the Pierce County, Bonney Lake or both, Pierce County shall satisfy the same, including all chargeable costs and attorney fees Should Pierce County be determined liable for said damages caused by or resulting from the concurrent negligence of the County and Bonney Lake, Bonney Lake shall indemnify Pierce County only to the extent of Bonney Lake s negligence and Pierce County shall indemnify Bonney Lake only to the extent of the Pierce County s negligence In the event that one party defends the other, the defending party shall have the sole right to select legal counsel to defend against the claim, demand, or cause of action. In the event that defense is undertaken, the defending party shall be empowered to settle or compromise the claim, demand, or cause of action, and the defended party shall not interfere therewith, provided that if the defending party settles a claim, demand, or cause of action against the other party without that party s consent, the non-consenting party shall not be liable for any settlement or fees. Exhibit A to Ordinance No s Page 7 of 9 Agenda Packet p. 69 of 158

70 4.3 Amendments. This Agreement may be amended or modified in accordance with applicable laws, rules or regulations, and upon mutual consent of the Parties, such mutual consent of the Parties shall be evidenced by a written amendment signed by the Parties. 4.4 Rights Reserved. Nothing in this Agreement is intended to waive or limit the rights of the Parties to require mitigation for any impact as allowed by federal, state, or local laws and ordinances including but not limited to environmental impacts governed by Chapter 43.21C RCW or mitigation fees governed by RCW Non-Liability of City, Officials, Employees, and Agents. No member, official, employee, or agent of the City or County shall be personally liable with to any obligation, terms, covenants, and conditions this Agreement. 4.6 Title of Parts and Sections. Any titles of the parts, sections, or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any part of its provisions. 4.7 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of the State of Washington. 4.8 Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding, or unenforceability. 4.9 Legal Actions. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement, or to collect damages as a result of any breach of the Agreement, the party prevailing in any such action shall be entitled to recover against the party not prevailing all reasonable attorneys fees and costs incurred in the action Joint Board. This Interlocal Agreement does not establish or create a separate legal administrative entity, joint board, or joint budget authority to accomplish the purposes of the Agreement Recordation. Within ten (10) days after the effective date of this Agreement, the Clerk of the County Council shall have this Agreement recorded with the County Auditor/Recorder Agenda Packet p. 70 of 158 Exhibit A to Ordinance No s Page 8 of 9

71 of Pierce County. In the alternative, the Parties may mutually agree to post this Agreement electronically on their websites Execution of Other Documentation. The City and the County agree to execute any further documentation that may be necessary to carry out the intent and obligations under this Agreement Complete Understanding of the Parties. This Agreement is executed in two (2) duplicate originals, each of which is deemed to be an original. This Agreement consists of nineteen (9) pages and constitutes the entire understanding and agreement of the Parties. CITY OF BONNEY LAKE Neil Johnson Mayor By direction of the Bonney Lake City Council PIERCE COUNTY Pat McCarthy Pierce County Executive in Open Public Meeting on Dated: Authenticated by: Bonney Lake City Clerk Approved as to Form: City of Bonney Lake Attorney Dated: Attested by: Pierce County Council Clerk Approved as to Form: Pierce County Attorney Exhibit A to Ordinance No s Page 9 of 9 Agenda Packet p. 71 of 158

72 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BONNEY LAKE and PIERCE COUNTY, 2017 Agenda Packet p. 72 of 158 Exhibit B to Ordinance No s Page 1 of 21

73 TABLE OF CONTENTS SECTION 1. PURPOSE... 4 SECTION 2. DEFINITIONS... 5 SECTION 3. ANNEXATION AREAS... 6 SECTION 4. SERVICE PROVIDERS... 8 SECTION 5. CRIMINAL JUSTICE SERVICES... 8 SECTION 6. BUILDING AND LAND USE PERMITTING... 9 SECTION 7. CODE ENFORCEMENT SECTION 8. SURFACE WATER MANAGEMENT SECTION 9. ROAD FUNDS SECTION 10. TRANSFER OF DOCUMENTS SECTION 11. CONSULTATION SECTION 12. TERM SECTION 13. GENERAL PROVISIONS Attachments A B C Kelly Creek Vista PAA Legal Description Delany PAA Legal Description Map Folio Exhibit B to Ordinance No s Page 2 of 21 Agenda Packet p. 73 of 158

74 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BONNEY LAKE and PIERCE COUNTY THIS MEMORANDUM OF UNDERSTANDING, hereinafter referred to as the Memorandum, is made and entered in this day of, 2017 by and between the City of Bonney Lake, a Washington municipal corporation (hereinafter referred to as the City ) and Pierce County, a Washington municipal corporation (hereinafter referred to as the County ), subject to the terms and conditions set forth herein. RECITALS WHEREAS, RCW 35A allows the City of Bonney Lake and Pierce County to enter into an Interlocal Agreement to annex the City s affiliated Potential Annexation Areas ( PAAs ) when at least sixty percent (60%) of the boundary of the area to be annexed are contiguous to the corporate boundary of the City and the area is within the City s Potential Annexation Areas; WHEREAS, the Kelly Creek Vista PAA is within the City s PAA, and more than sixty percent (60%) of its boundary is contiguous with the City of Bonney Lake s boundary; WHEREAS, the Delany PAA is within the City s PAA, and more than sixty percent (60%) of its boundary is contiguous with the City of Bonney Lake s boundary; WHEREAS, the City Council passed Resolution 2427 on January 15, 2015 directing City staff to negotiate an Interlocal Agreement with Pierce County to annex the two Potential Annexation Areas subject to this Memorandum of Understanding as required by 35A (1); WHEREAS, Multi-County Planning Policy MPP-DP-19 states, [S]upport joint planning between cities and counties to work cooperatively in planning for urban unincorporated areas to ensure an orderly transition to city governance, including efforts such as: (a) establishing urban development standards, (b) addressing service and infrastructure financing, and (c) transferring permitting authority; Agenda Packet p. 74 of 158 Exhibit B to Ordinance No s Page 3 of 21

75 WHEREAS, annexation of the two Potential Annexation Areas is exempt from compliance with the requirements of the State Environmental Policy Act pursuant to RCW 43.21C.222; WHEREAS, the annexation ordinance provided for in RCW 35A is subject to referendum within forty-five days after adoption; WHEREAS, upon the filing of a timely and sufficient referendum petition with the legislative body, signed by registered voters representing, not less than fifteen percent (15%) of the votes cast in the last general state election in the area to be annexed, the question of annexation shall be submitted to voters of the area in a general election if one is to be held within ninety (90) days or at a special election called for that purpose; WHEREAS, after the expiration of the forty-fifth day from, but excluding the date of adoption of the annexation ordinance, if no timely and sufficient referendum petition has been filed, the area annexed shall become a part of the City of Bonney Lake; WHEREAS, the Bonney Lake City Council has enacted Ordinance Number on authorizing the Mayor to enter into this Memorandum of Understanding; WHEREAS, the Pierce County Council has enacted Ordinance Number on authorizing the County Executive to enter into this Memorandum of Understanding; NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: SECTION 1. PURPOSE 1.1 Purpose. The purpose of this Memorandum is to provide for the transition of governmental services from Pierce County to the City of Bonney Lake for the Kelly Creek Vista and Delany Potential Annexation Areas as part of the annexation of these areas into the City of Bonney Lake. Exhibit B to Ordinance No s Page 4 of 21 Agenda Packet p. 75 of 158

76 SECTION 2. DEFINITIONS 2.1 Affected Project. All projects within the PAA that are subject to the Notice of Application requirements of RCW 36.70B.110 or subject to review under the State Environmental Policy Act (SEPA). 2.2 Annexation Date. The annexation date shall be the date that the PAAs are officially annexed into the City. This date will be the date following the City s compliance with RCW 35A (4). 2.3 BLMC. The Bonney Lake Municipal Code. 2.4 Effective Date. The Effective Date of this Memorandum shall be the date following the approval of the Memorandum by official action of the legislative bodies of each of the Parties, and the signing of the Memorandum by the duly authorized representative of each of the Parties. 2.5 Development Regulations. The controls, requirements, and limitations placed on development, including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, stormwater requirements, transportation requirements, SEPA ordinances, and subdivision ordinances. 2.6 PCC. Pierce County Code. 2.7 Potential Annexation Area (PAA). An area within the designated urban growth area which has been identified as being appropriate for annexation. For this Memorandum, reference to a PAA(s) encompasses the areas as described in Section 2. Annexation Areas (Kelly Creek Vista PAA and Delany PAA). 2.8 Working Day. Every day is considered a working day unless it is considered a nonworking day. Nonworking days are all Saturdays, all Sundays, all of the following holidays: the third Monday of January, the third Monday of February, Memorial Day, July 4th, Labor Day, November 11th, Thanksgiving Day, the day after Thanksgiving, and the days between the time period starting on December 24th and concluding on January 1st. When any of the holidays fall on a Sunday, the following Monday shall be considered a nonworking day. When any of the holidays fall on a Saturday, the preceding Friday shall be considered a nonworking day. Agenda Packet p. 76 of 158 Exhibit B to Ordinance No s Page 5 of 21

77 SECTION 3. ANNEXATION AREAS 3.1 Annexation. This Memorandum shall apply to the two Potential Annexation Areas discussed in this section annexed into the City following the entering into such annexation and adoption of an ordinance by the City providing for such annexation pursuant to RCW 35A Kelly Creek Vista PAA Boundaries. A legal description of the boundaries of this PAA is provided in Attachment A. A graphical illustration of this area is provided on Map 1 in the Map Folio included as Attachment C Size. The area is comprised of eighty-three (83) parcels and road right-ofway totaling approximately ninety-three (93) acres Land Use Patterns. The current land use pattern is a mixture of single family residences and vacant properties Land Use Designations. The existing land use designation established by the Pierce County Comprehensive Plan is Moderate Density Single-Family and the pre-annexation land use designation adopted by the City pursuant to Ordinance 1110 is Single Family Residential. A graphical illustration of the existing and proposed land use designations is provided on Maps 2 and 3, respectively, in the Map Folio included as Attachment C Zoning Designations. The current zoning classification established by the Pierce County Zoning Map is Moderate Density Single-Family. The City has not yet adopted pre-annexation zoning for this area; however, the corresponding zoning classification for the adopted pre-annexation land use designation is Single Family Residential: R-1. A graphical illustration of the existing and proposed zoning classification are provided on Maps 4 and 5, respectively, in the Map Folio included as Attachment C. 3.3 Delany PAA. Exhibit B to Ordinance No s Page 6 of 21 Agenda Packet p. 77 of 158

78 3.3.1 Boundaries. A legal description of the boundaries of this PAA is provided in Attachment B. A graphical illustration of this area is provided on Map 6 in the Map Folio included as Attachment C Size. The area is comprised of two (2) parcels and road right-of-way totaling approximately 1.44 acres Land Use Patterns. Both properties are currently developed as an Automotive Service and Repair Facility Land Use Designations. The existing land use designation established by the Pierce County Comprehensive Plan is provided in the table below. Given the properties location in the Eastown Neighborhood along SR 410, the identified land use designation would be Eastown as indicated on the table below. Current Land Use Designation Proposed City Land Use Designation Acres Community Center (CC) Eastown 1.23 A graphical illustration of the existing and proposed land use designations is provided on Maps 7 and 8, respectively, in the Map Folio included as Attachment C Zoning Designations. The current zoning classification established by the Pierce County Zoning Map is provided in the table below. The City has not yet adopted pre-annexation zoning for this area; however, the corresponding zoning classification for the identified pre-annexation land use designation is provided on the table below. Current Zoning Classification Proposed City Zoning Classification Acres Community Center (CC) Eastown 1.23 Agenda Packet p. 78 of 158 Exhibit B to Ordinance No s Page 7 of 21

79 A graphical illustration of the existing and proposed zoning classification is provided on Maps 9 and 10, respectively, in the Map Folio included as Attachment C. SECTION 4. SERVICE PROVIDERS 4.1 General. All of the following service providers will continue providing services once the PAAs are annexed by the City. Therefore, for those service providers which remain the same upon annexation of the PAAs, there would not be an increased demand for services when compared to the current projected future demand. 4.2 Schools. The Kelly Creek Vista annexation area is primarily served by the Sumner School District, while a small portion of the area is served by the White River School District. The areas served by each school district within the Kelly Creek Vista are illustrated on Maps 11 and 12, respectively, in the Map Folio included as Attachment C. The Delany PAA is wholly within the White River School District. 4.3 Library. The Pierce County Library system currently provides library services to all the annexation areas, and would continue to provide library services upon annexation into the City. 4.4 Fire Services. East Pierce Fire and Rescue currently provides fire protection services to the annexation area, and would continue to provide fire protection services upon annexation into the City. 4.5 Water. The City of Bonney Lake provides water to the Kelly Creek Vista annexation area. The Valley Water District provides water to the Delany annexation area. 4.6 Sewer. The City of Bonney Lake is the sewer service provider for both PAAs. 4.7 Power. Electrical and natural gas are provided to both PAAs by Puget Sound Energy. SECTION 5. CRIMINAL JUSTICE SERVICES 5.1 General. Currently, Pierce County is responsible for criminal justice services (e.g. law enforcement, jail services, and court and prosecution services) within the PAAs. The City Exhibit B to Ordinance No s Page 8 of 21 Agenda Packet p. 79 of 158

80 would assume responsibility for criminal justice service upon annexation as provided in this section. 5.2 Police Services. On the Annexation Date, police service responsibility within the PAAs will be transferred to the City. The County will responsible for all criminal cases and investigations for crimes that occurred before the Annexation Date, including but not limited to all costs associated with these cases and investigations. The City will be responsible for all criminal cases and investigations for crimes that occurred on or after the Annexation Date, including but not limited to all cost associated with these cases and investigations. The City s Chief of Police and the Pierce County Sheriff will work together to ensure a smooth transition plan. 5.3 Court and Prosecution Services. The County will be responsible for the court expenses, prosecution, and payment of any fees or assessments associated with misdemeanor criminal offenses that occur within the PAA prior to the Annexation Date. The City will be responsible for the court expenses, prosecution, and payment of any fees or assessments associated with misdemeanor criminal offenses that occur within the PAA on or after the Annexation Date. 5.4 Jail Services. Pierce County will be responsible for the incarceration of adult offenders found to have committed a misdemeanor or gross misdemeanor within the PAAs before the Annexation Date. The City will be responsible for the incarceration of adult offenders found to have committed a misdemeanor or gross misdemeanor within the PAAs on or after the Annexation Date. SECTION 6. BUILDING AND LAND USE PERMITTING 6.1 General. The Parties agree that Pierce County Planning and Land Services (PALS) shall continue to review and approve all project permits for development proposals within the PAAs under the Development Regulations adopted by the County until the Annexation Date as provided in this Section. 6.2 Consultation. Following the Effective Date of this Memorandum, the County agrees to consult with the City on Affected Projects as provided in Section 11. Agenda Packet p. 80 of 158 Exhibit B to Ordinance No s Page 9 of 21

81 6.3 Building Permits. The County shall be responsible for completing the processing for all building permit applications and associated permits for properties within the PAAs submitted to the County and deemed complete prior to the Annexation Date as provided below: For the purpose of this Section, associated permits include mechanical, plumbing, fire suppression, stormwater, and road approach/curb cut permits for the underlying building permit Sign permits are not associated permits. The County will only complete sign permits submitted to the County prior to the Annexation Date Building permits and associated permits for homes within plats or short plats that have not received final plat approval prior to the Annexation Date shall be processed consistently with the terms of Section The County shall be responsible for defending and processing all appeals of building permits and other related permits issued by the County prior to and after the Annexation Date For the purpose of this Section, complete shall mean the final administrative or quasi-judicial approval, including final inspection and issuance of an occupancy permit. 6.4 Plats and Short Plats. The County shall be responsible for completing the processing for plats and short plat applications for properties within the PAAs submitted to the County prior to the Annexation Date as provided below: The County agrees to complete the review process through the phase (e.g. preliminary, civil, and final) that is pending on the Annexation Date and then turn the application over to the City for further processing The County agrees to complete associated permits filed either before or after the Annexation Date that are necessary to complete the current phase of the plat or short plat application that remains under the County s review as provided in Section of this Memorandum. Exhibit B to Ordinance No s Page 10 of 21 Agenda Packet p. 81 of 158

82 6.4.3 For the purpose of Section 6.4, associated permits include shoreline permits, variances, site development, forest practice permits, civil permits, right-of-way permits, critical area permits, and reviews under the State Environmental Policy Act (SEPA) For the purpose of Section 6.4, complete means the final administrative or quasi-judicial approval All building permits and associated permits as defined in Section 6.3 for homes within in a new subdivision shall be submitted to the City after the Annexation date. 6.5 Other Land Use Permits. The County shall be responsible for completing the processing for all other land use permit applications for properties within the PAAs submitted to the County prior to the Annexation Date as provided below: Definition of Land Use Permits. For the purpose of Section 6.5, other land use permits include nonconforming use permits, conditional use permits, shoreline permits, variances, site development forest practice permits, critical area permits, and reviews under the State Environmental Policy Act (SEPA) Plats or Short Plats. Other land use permits associated with plats or short plats shall be processed consistently with the terms of Section Definition of Complete. For the purpose of Section 6.5, complete means the final administrative or quasi-judicial approval, including final inspection and issuance of an occupancy permit. 6.6 Accepting County Conditions. Following annexation and transfer of a development application to the City for handling, the conditions of approval for all building and land use permits and preliminary plat applications in the annexed area will continue to apply as required by law. 6.7 Permit Fees. In order to cover the cost of processing building and land use permits submitted to the County prior to the Annexation Date, the County is authorized to collect Agenda Packet p. 82 of 158 Exhibit B to Ordinance No s Page 11 of 21

83 fees for those permits after the Annexation Date. The County is further authorized to retain fees collected by the County for permits submitted to the County prior to the Annexation Date. 6.8 Impact Fees. The County shall require applicants to pay the City s Traffic and Park Impact Fees on all building permits submitted to the County after the Effective Date of this Memorandum within the annexation areas described in this Memorandum. The County shall transfer all of these Traffic and Park Impact Fees collected by the County after the Annexation Date to the City. 6.9 Permit Extensions. The County agrees to grant extension requests for permits discussed in Section 6 of this Memorandum only when construction authorized by the underlying permit is underway by the Annexation Data, or if the County approved the permit and issued the permit prior to the Annexation Date. The County further agrees that the County will not reactivate expired building permits and/or associated permits Appeals. The County shall be responsible for defending all administrative, quasijudicial, or Land Use Petition Act appeals for land use decisions issued by the County prior to and after the Annexation Date Tracking of County Retained Permits. The County shall provide the City a list of all building and land use permit applications that are still pending, under review, or issued but not yet finalized, within thirty (30) days of the Effective Date of this Memorandum. This list shall include the project number assigned by the County, parcel number, a brief description of the project, current status, and expiration date of the permit. The County shall provide the City an update list every six (6) months until all permits on the list have either been finalized, expired, or otherwise completed. SECTION 7. CODE ENFORCEMENT 7.1 General. On the Annexation Date, code enforcement responsibility within the PAAs will be transferred to the City. 7.2 Code Enforcement Cases. The County shall provide the City a list of all pending code enforcement cases within thirty (30) days of the Effective Date of this Memorandum. Pierce Exhibit B to Ordinance No s Page 12 of 21 Agenda Packet p. 83 of 158

84 County shall close these cases as of the Annexation Date. The City, at its sole discretion, may pursue any code enforcement action originally initiated by the County. SECTION 8. SURFACE WATER MANAGEMENT 8.1 Legal Control and Maintenance Responsibilities The annexation area includes two properties (Tax Parcel Numbers and ) that were dedicated to Pierce County for surface water management. The City agrees to accept transfer of ownership and maintenance responsibility of these properties. The transfer of legal control of these properties shall be completed through a separate real estate transaction agreeable by both the City and County A property (Tax Parcel Number ) currently within the City and adjacent to the annexation area also contains county stormwater infrastructure. This property was annexed by the City in The City agrees to accept transfer of ownership and maintenance responsibility of this property. The transfer of legal control of this property shall be completed through a separate real estate transaction agreeable by both the City and County. SECTION 9. ROAD FUNDS 9.1 County Road Taxes. In accordance with RCW 35A , the County shall distribute to the City those portions of the non-delinquent road district taxes, which the road district levied in 2016 for the PAAs. 9.2 Transportation Benefit District. On December 2, 2014, Pierce County adopted Ordinance establishing a Transportation Benefit District (TBD), which encompassed all of the unincorporated areas of Pierce County at the time of the establishment of the TBD. Ordinance is silent as to how the annexation would affect the boundaries of the TBD. Therefore, the County will review this issue and consider options to forward to the TBD Governing Board to address the impact of annexations on the boundaries of the TBD. Agenda Packet p. 84 of 158 Exhibit B to Ordinance No s Page 13 of 21

85 SECTION 10. TRANSFER OF DOCUMENTS 10.1 Building Permit Records. The County will transfer all building permit records for properties within the PAAs within sixty (60) days of the Annexation Date, provided that the files for properties associated with retained permits may be retained and provided to the City within thirty (30) days of the permit either being finalized, expired, or otherwise completed Claims. The County shall provide the City with all records of all claims for damages for incidents within the right-of-way and County owned properties within thirty (30) days of the Effective Date of this Memorandum. The County shall be responsible for all claims related to incidents that occurred prior to the Annexation Date Stormwater Facilities. Within sixty (60) days from the Annexation Date, the County shall provide the following documentation to the City: Private Facilities. Records related to all privately maintained commercial and residential stormwater system inspected by the County Maintenance Files. All historic maintenance files for stormwater facilities in the PAAs to include NPDES related notices and reports prepared by the County for stormwater facilities within the PAAs and surface water monitoring data within the PAAs Illicit Discharge Notices. All notices (e.g. s, letters, fines, etc.) provided by the County in the past five (5) years to private property owners in the PAAs regarding illicit discharges or surface water conveyance system violations Complaints. Records related to drainage and water quality complaints received by the County from property owners within the PAAs, and the current status of those complaints Capital Improvement Program. List of constructed and planned capital projects related to stream habitat, water quality, flooding, and stormwater conveyance systems within the PAAs. Exhibit B to Ordinance No s Page 14 of 21 Agenda Packet p. 85 of 158

86 As-Built Drawings. As-built drawings for all stormwater facilities within the PAAs that are on file with the County Transportation Facilities. Within thirty (30) days from the Annexation Date, the County shall provide the following documentation to the City: Traffic Counts. All traffic count data collected by the County within the PAAs Sign Inventory. Street sign inventory including reflectivity information for all signs within the PAAs Maintenance Files. All historic maintenance files for transportation facilities within the PAAs, including pavement management records for roadway sections in the PAAs, and a list of ongoing maintenance activities within the right-of-way within the PAAs Lighting. The location of all street lights within the PAAs along with any documentation including identification number and responsibility for power billing for streetlights within the PAAs As-Built Drawings. As-built drawings for all transportation facilities within the PAAs that are on file with the County Pavement Condition. The County shall provide the City with all pavement condition information on file with the County for public roads within the PAAs Sidewalk Conditions. The County will provide the City an ADA condition assessment of all curb ramps for all public sidewalks. SECTION 11. CONSULTATION 11.1 General. The Parties agree that any time the words consult, confer, or consultation are used in this Memorandum, that the word is referencing the process provided in this Section regardless if this Section is specifically identified in the text of the Memorandum. Agenda Packet p. 86 of 158 Exhibit B to Ordinance No s Page 15 of 21

87 11.2 Consultation. The Parties agree that the following is the minimum required for consultation: Notice. The County shall consider the City a party of record for all Affected Projects, and provide the City with the Notices of Application, Hearing, and Decision within the timeframes required by Chapter 36.70B RCW Materials. Upon request of the City, the County will provide within ten (10) working days to the City paper or electronic copies of all of the materials in its possession that were submitted as part of the permit application for which the City received a notice under Section Comments. The City shall provide written comments and any requested mitigation measures within twenty-eight (28) working days of the receipt of the materials identified in section The County shall provide a written response to the City within twenty-eight (28) working days from the date of receipt of the City s comment letter Subsequent Submittals. The Parties agree that if the City previously requested copies under Section and/or provided comments under Section 6.2.3, the County shall automatically provide to the City within ten (10) working days all additional or resubmitted materials for that Affected Project. The City shall provide written comments and any requested mitigation measures within twenty-one (21) working days of the receipt of the subsequent submittals. The County shall provide a written response to the City within twenty-one (21) working days from the date of receipt of the City s comment letter. This process shall be repeated for all subsequent submittals for an Affected Project Technical Review Meetings. The County shall provide the City notice at least seven (7) days prior to any technical review meetings for Affected Projects. The City shall be allowed and encouraged to attend all building permit pre-construction conferences and/or technical review meetings for Affected Projects. Exhibit B to Ordinance No s Page 16 of 21 Agenda Packet p. 87 of 158

88 Project Conditions of Approval and Mitigation. The Parties agree to negotiate in good faith to jointly identify conditions of approval and/or mitigation measures for an Affected Project. Final approval will remain with the jurisdiction having regulatory authority at the time of project review and approval. SECTION 12. TERM 12.1 Duration. This Memorandum shall remain in effect for five (5) years after the Annexation Date Termination Either Party may terminate the Memorandum upon ninety (90) days advance written notice to the other party. Notwithstanding the expiration or earlier termination of the Memorandum, the County and City shall remain responsible for fulfilling any outstanding obligations under this Memorandum that were incurred prior to the date on which the Memorandum expired or terminated This Memorandum shall be terminated immediately if a referendum petition is filed within the allotted time period and the resulting annexation vote defeats the proposed annexation(s). SECTION 13. GENERAL PROVISIONS 13.1 Notices, Demands and Communications. Formal notices, demands, and communications between the City and the County shall be sufficient if given and shall not be deemed given unless dispatched by certified mail, postage prepaid, returned receipt requested, or delivered personally, to the principal offices of the City and the County as follows: Agenda Packet p. 88 of 158 Exhibit B to Ordinance No s Page 17 of 21

89 City: Mayor City of Bonney Lake PO Box 7380 Bonney Lake, WA County: Office of the Pierce County Executive County-City Building, Room Tacoma Avenue South Tacoma, WA Director: Pierce County Planning and Land Services Public Services Building 2401 South 35th Street, Room 175 Tacoma WA Indemnification and Defense Pierce County shall defend, indemnify, and save harmless Bonney Lake, its officers, employees, and agents from any and all costs, claims, judgments, and awards of damages, resulting from the sole negligence of the County, its officers, employees, or agents associated with this Memorandum. In executing this Memorandum, the County does not assume liability or responsibility for or release Bonney Lake from any liability or responsibility to the extent that such liability or responsibility arises from the existence or effect of a Bonney Lake ordinance, rule, regulation, resolution, custom, policy, or practice. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such Bonney Lake ordinance, rule, regulation, resolution, custom, policy, or practice is at issue, Bonney Lake shall defend the same at its sole expense and if judgment is entered or damages awarded against Bonney Lake, the County or both, Bonney Lake shall satisfy the same, including all chargeable costs and attorney fees Bonney Lake shall defend, indemnify, and save harmless Pierce County, its officers, employees, and agents from any and all costs, claims, judgments, and awards of damages, resulting from the sole negligence of Bonney Lake, its officers, employees, or agents associated with this Memorandum. In executing this Memorandum, Bonney Lake does not assume liability or Exhibit B to Ordinance No s Page 18 of 21 Agenda Packet p. 89 of 158

90 responsibility for, or release Pierce County from, any liability or responsibility to the extent that such liability or responsibility arises from the existence or effect of a Pierce County ordinance, rule, regulation, resolution, custom, policy, or practice. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such Pierce County ordinance, rule, regulation, resolution, custom, policy, or practice is at issue, Pierce County shall defend the same at its sole expense and if judgment is entered or damages awarded against the Pierce County, Bonney Lake or both, Pierce County shall satisfy the same, including all chargeable costs and attorney fees Should Pierce County be determined liable for said damages caused by or resulting from the concurrent negligence of the County and Bonney Lake, Bonney Lake shall indemnify Pierce County only to the extent of Bonney Lake s negligence and Pierce County shall indemnify Bonney Lake only to the extent of the Pierce County s negligence In the event that one party defends the other, the defending party shall have the sole right to select legal counsel to defend against the claim, demand, or cause of action. In the event that defense is undertaken, the defending party shall be empowered to settle or compromise the claim, demand, or cause of action, and the defended party shall not interfere therewith, provided that if the defending party settles a claim, demand, or cause of action against the other party without that party s consent, the non-consenting party shall not be liable for any settlement or fees Amendments. This Memorandum may be amended or modified in accordance with applicable laws, rules or regulations, and upon mutual consent of the Parties, such mutual consent of the Parties shall be evidenced by a written amendment signed by the Parties Rights Reserved. Nothing in this Memorandum is intended to waive or limit the rights of the Parties to require mitigation for any impact as allowed by federal, state, or local laws and ordinances including but not limited to environmental impacts governed by Chapter 43.21C RCW or mitigation fees governed by RCW Agenda Packet p. 90 of 158 Exhibit B to Ordinance No s Page 19 of 21

91 13.5 Non-Liability of City, Officials, Employees, and Agents. No member, official, employee, or agent of the City or County shall be personally liable with to any obligation, terms, covenants, and conditions this Memorandum Title of Parts and Sections. Any titles of the parts, sections, or subsections of this Memorandum are inserted for convenience of reference only and shall be disregarded in construing or interpreting any part of its provisions Applicable Law. This Memorandum shall be interpreted under and pursuant to the laws of the State of Washington Severability. If any term, provision, covenant, or condition of this Memorandum is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding, or unenforceability Legal Actions. In the event any legal action is commenced to interpret or to enforce the terms of this Memorandum, or to collect damages as a result of any breach of the Memorandum, the party prevailing in any such action shall be entitled to recover against the party not prevailing all reasonable attorneys fees and costs incurred in the action Joint Board. This Memorandum does not establish or create a separate legal administrative entity, joint board, or joint budget authority to accomplish the purposes of the Memorandum Recordation. Within ten (10) days after the effective date of this Memorandum, the Clerk of the County Council shall have this Memorandum recorded with the County Auditor/Recorder of Pierce County. In the alternative, the Parties may mutually agree to post this Memorandum electronically on their websites Execution of Other Documentation. The City and the County agree to execute any further documentation that may be necessary to carry out the intent and obligations under this Memorandum Complete Understanding of the Parties. This Memorandum is executed in two (2) duplicate originals, each of which is deemed to be an original. This Memorandum consists of Exhibit B to Ordinance No s Page 20 of 21 Agenda Packet p. 91 of 158

92 nineteen (19) pages and three (3) attachments, and constitutes the entire understanding and agreement of the Parties. CITY OF BONNEY LAKE Neil Johnson Mayor By direction of the Bonney Lake City Council PIERCE COUNTY Pat McCarthy Pierce County Executive in Open Public Meeting on Dated: Authenticated by: Bonney Lake City Clerk Approved as to Form: City of Bonney Lake Attorney Dated: Attested by: Pierce County Council Clerk Approved as to Form: Pierce County Attorney Agenda Packet p. 92 of 158 Exhibit B to Ordinance No s Page 21 of 21

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97 RCW 35A : Annexation of territory within urban growth areas Interlocal agree... Page 1 of 1 1/12/2015 RCW 35A Annexation of territory within urban growth areas Interlocal agreement Public hearing Ordinance providing for annexation. (1) The legislative body of a county or code city planning under chapter 36.70A RCW and subject to the requirements of RCW 36.70A.215 may initiate an annexation process for unincorporated territory by adopting a resolution commencing negotiations for an interlocal agreement as provided in chapter RCW between a county and any code city within the county. The territory proposed for annexation must meet the following criteria: (a) Be within the code city urban growth area designated under RCW 36.70A.110, and (b) at least sixty percent of the boundaries of the territory proposed for annexation must be contiguous to the annexing code city or one or more cities or towns. (2) If the territory proposed for annexation has been designated in an adopted county comprehensive plan as part of an urban growth area, urban service area, or potential annexation area for a specific city, or if the urban growth area territory proposed for annexation has been designated in a written agreement between a city and a county for annexation to a specific city or town, the designation or designations shall receive full consideration before a city or county may initiate the annexation process provided for in RCW 35A (3) The agreement shall describe the boundaries of the territory to be annexed. A public hearing shall be held by each legislative body, separately or jointly, before the agreement is executed. Each legislative body holding a public hearing shall, separately or jointly, publish the agreement at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the territory proposed for annexation. (4) Following adoption and execution of the agreement by both legislative bodies, the city legislative body shall adopt an ordinance providing for the annexation of the territory described in the agreement. The legislative body shall cause notice of the proposed effective date of the annexation, together with a description of the property to be annexed, to be published at least once each week for two weeks subsequent to passage of the ordinance, in one or more newspapers of general circulation within the city and in one or more newspapers of general circulation within the territory to be annexed. If the annexation ordinance provides for assumption of indebtedness or adoption of a proposed zoning regulation, the notice shall include a statement of the requirements. Any territory to be annexed through an ordinance adopted under this section is annexed and becomes a part of the city upon the date fixed in the ordinance of annexation, which date may not be fewer than forty-five days after adoption of the ordinance. [2003 c ] Agenda Packet p. 97 of 158

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99 Sponsored by: Councilmember Derek Young Requested by: Executive/Planning and Land Services ORDINANCE NO s An Ordinance of the Pierce County Council Acknowledging its Approval of an Interlocal Agreement with the City of Bonney Lake Regarding the Annexation of an Unincorporated Urban Area(s) Utilizing the Procedures Set Forth in Revised Code of Washington (RCW) 35A and Authorizing the Pierce County Executive to Execute Said Agreement; Authorizing the Executive to Enter into a Memorandum of Understanding Regarding the Transition of Governmental Services Related to Said Annexation; and Adopting Findings of Fact. Whereas, the Pierce County Regional Council (PCRC) was created in 1992 by an interlocal agreement among the Cities and Towns of Pierce County and Pierce County, and charged with responsibilities, including, but not limited to: Serving as a local link to the Puget Sound Regional Council, promoting intergovernmental cooperation, facilitating compliance with the Growth Management Act (GMA) and the Multi-County Planning Policies, and developing a consensus among jurisdictions regarding the development and modification of the Countywide Planning Policies; and Whereas, the Pierce County Countywide Planning Policies (CPPs) are written policy statements which are to be used solely for establishing a countywide framework from which the County and County municipal comprehensive plans are developed and adopted; and Whereas, the CPPs direct the County to consult with its Cities and Towns and designate Potential Annexation Areas (PAAs) through the County Comprehensive Plan; and Whereas, the CPPs identify unincorporated islands as the County s highest priority for annexation; and Whereas, Pierce County adopted an updated Pierce County Comprehensive Plan through Ordinance No on September 1, 2015; and Ordinance No s Page 1 of 3 Pierce County Council 930 Tacoma Ave S, Rm 1046 Agenda Packet p. 99 of 158 Tacoma, WA 98402

100 Whereas, the 2015 Comprehensive Plan update designated certain unincorporated urban areas as Potential Annexation Areas; and Whereas, RCW 35A allows Pierce County to enter into an interlocal agreement with a city to annex an area within its PAA when at least 60 percent of the boundary of the area is contiguous with a city; and Whereas, RCW 35A (1) allows either the legislative body of a county or code city to initiate an annexation process by adopting a resolution commencing negotiations for an interlocal agreement; and Whereas, the City of Bonney Lake passed Resolution 2427 on January 15, 2015, directing City staff to negotiate an interlocal agreement with Pierce County to annex properties within its designated Potential Annexation Area(s); and Whereas, the proposed annexation areas meet the requirements of RCW 35A ; and Whereas, the City hosted, and County staff attended, a public open house on the annexation on March 9, 2016; and Whereas, the City and County completed its negotiations in May 2016; and Whereas, RCW 35A requires a public hearing to be held by each legislative body, separately or jointly, before the agreement is executed; and Whereas, RCW 35A requires that each legislative body holding a public hearing shall, separately or jointly, publish the agreement at least once a week for two weeks before the date of the hearing in one or more newspapers of general circulation within the territory proposed for annexation; and Whereas, the County published the proposed agreement twice during the period of November 2, 2016, and November 9, 2016, in the Enumclaw Courier Herald and The News Tribune; and Whereas, the Pierce County Council held a public hearing on November 29, 2016; and Whereas, the City will publish notice of the proposed effective date of the annexation, together with a description of the property to be annexed as required by RCW 35A (4); Now Therefore, Agenda Packet p. 100 of 158 Ordinance No s Page 2 of 3 Pierce County Council 930 Tacoma Ave S, Rm 1046 Tacoma, WA 98402

101 BE IT ORDAINED by the Council of Pierce County: Section 1. The Pierce County Council hereby approves an interlocal annexation agreement with the City of Bonney Lake regarding the annexation of unincorporated territory pursuant to the procedures set forth in RCW 35A The Executive is hereby authorized to enter into said agreement, which is substantially in the form as shown in Exhibit A, and attached hereto and incorporated herein by reference. Section 2. The Pierce County Council hereby authorizes the Executive to enter in a memorandum of understanding regarding the transition of governmental services associated with the interlocal annexation agreement described in Section 1 above. Said memorandum of understanding, which is substantially in the form as shown in Exhibit B, is attached hereto and incorporated herein by reference. Section 3. Findings of Fact are hereby adopted as shown in Exhibit C, which is attached hereto and incorporated herein by reference. ATTEST: PASSED this ^""dav of Ipy^w^^ (^v^ Denise D. Johnson Clerk of the Council Date of Publication of Notice of Public Hearing: ^ir\w y\v^k-^y ^ Effective Date of Ordinance: ^^^g PIERCE COUNTY COUNCIL Pierce County, Washington ^ Pat McCarthy Pierce County^xecdllive Approved v ^t^ed S day of ^^ '^G Ordinance No s Page 3 of 3 Agenda Pierce Packet County p. 101 Council of Tacoma Ave S, Rm 1046 Tacoma, WA 98402

102 Exhibit A to Ordinance No s KELLY CREEK VISTA AND DELANY ANNEXATION AGREEMENT BETWEEN THE CITY OF BONNEY LAKE and PIERCE COUNTY THIS INTERLOCAL AGREEMENT, hereinafter referred to as the Agreement, is entered into under the authority of Chapter RCW and RCW 35A effective on the day of, 2016 by and between the City of Bonney Lake, a Washington municipal corporation (hereinafter referred to as the City ) and Pierce County, a Washington municipal corporation (hereinafter referred to as the County ), subject to the terms and conditions set forth herein. RECITALS WHEREAS, the City desires to annex the identified Potential Annexation Areas (hereinafter referred to as PAA ) into the City utilizing the annexation method provided in RCW 35A ; WHEREAS, RCW 35A allows the City of Bonney Lake and Pierce County to enter into an Interlocal Agreement to annex the City s affiliated PAAs when at least sixty percent (60%) of the boundary of the area to be annexed are contiguous to the corporate boundary of the City and the area is within the City s PAAs; WHEREAS, the Kelly Creek Vista and Delany PAAs are within the City s PAA, and more than sixty percent (60%) of its boundary is contiguous with the City of Bonney Lake s boundary; WHEREAS, the City Council passed Resolution 2427 on January 15, 2015 directing City staff to negotiate an Interlocal Agreement with Pierce County to annex the two PAAs subject to this Agreement as required by 35A (1); WHEREAS, annexation of the two PAAs subject to this Agreement is exempt from compliance with the requirements of the State Environmental Policy Act pursuant to RCW 43.21C.222; Agenda Packet p. 102 of 158 Exhibit A to Ordinance No s Page 1 of 9

103 Exhibit A to Ordinance No s WHEREAS, the annexation ordinances provided for in RCW 35A are subject to referendum within forty-five days after adoption; WHEREAS, after the expiration of the forty-fifth day from, but excluding the date of adoption of the annexation ordinance, if no timely and sufficient referendum petition has been filed, the area annexed shall become a part of the City of Bonney Lake; WHEREAS, the City and County have published notice of adoption of this agreement as required by RCW 35A (3); WHEREAS, the City will publish notice of the proposed effective date of the annexation, together with a description of the property to be annexed as required by RCW 35A (4); WHEREAS, the Bonney Lake City Council has enacted Ordinance Number on authorizing the Mayor to enter into this Agreement; and WHEREAS, the Pierce County Council has enacted Ordinance Number on authorizing the County Executive to enter into this Agreement. WHEREAS, the Bonney Lake City Council held a public hearing pursuant to RCW 35A (3) on [date], and the Pierce County Council held a public hearing on [date]. NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: AGREEMENT SECTION 1. ANNEXATION AREAS 1.1 Annexation. The County and City agree that the two PAAs identified in this section shall be annexed into the City following the adopting of an ordinance by the City providing for such annexation pursuant to RCW 35A The annexation date fixed by ordinance shall not be fewer than forty-five (45) days from the date of adoption of the ordinance pursuant to RCW 35A (4). 1.2 Kelly Creek Vista PAA. The Kelly Creek Vista PAA is legal defined as: Exhibit A to Ordinance No s Page 2 of 9 Agenda Packet p. 103 of 158

104 Exhibit A to Ordinance No s THOSE PORTIONS OF THE NORTHEAST QUARTER OF SECTION 33 AND THE NORTHWEST QUARTER AND NORTHEAST QUARTER OF SECTION 34, ALL IN TOWNSHIP 20 NORTH, RANGE 5 EAST, W.M. IN PIERCE COUNTY, WASHINGTON, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33, SAID CORNER BEING AT THE CITY LIMIT S LINE OF THE CITY OF BONNEY LAKE AS ESTABLISHED BY ORDINANCE NO. 109, RECORDS OF SAID COUNTY; THENCE SOUTH ALONG SAID CITY LIMIT S LINE AND THE WEST LINE OF SAID SUBDIVISION, FEET MORE OR LESS TO A POINT ON THE NORTHERLY LINE OF THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISH BY RESOLUTION R98-154; SAID POINT BEING AN ANGLE POINT IN TRACT A OF THE PLAT OF MOUNTAIN VISTA PUD AS RECORDED UNDER RECORDING NO RECORDS OF SAID COUNTY; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE SOUTHEASTERLY ALONG THE EASTERLY BOUNDARY LINE OF SAID PLAT TO THE NORTHWESTERLY MARGIN OF CHURCH LAKE ROAD; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE PERPENDICULAR TO SAID MARGIN SOUTHEASTERLY TO THE SOUTHEASTERLY MARGIN OF SAID CHURCH LAKE ROAD; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE AND SAID SOUTHEASTERLY MARGIN, SOUTHWESTERLY TO THE INTERSECTION WITH THE WEST LINE OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33; SAID LINE BEING COMMON WITH THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY RESOLUTION 3116 RECORDS OF SAID COUNTY; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE SOUTH ALONG SAID WEST LINE TO THE SOUTHWEST CORNER OF SAID SUBDIVISION; SAID CORNER BEING COMMON TO THE SOUTHWEST CORNER OF TRACT B OF KELLY CREEK VISTA II, AS RECORDED UNDER RECORDING NO , RECORDS OF SAID COUNTY; THENCE LEAVING SAID CITY LIMIT S LINE, EAST ALONG THE SOUTH LINE OF SAID SUBDIVISION AND THE SOUTH LINE OF SAID TRACT B TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33; THENCE CONTINUING EAST ALONG THE SOUTH LINE OF THE NORTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 34 TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 34; SAID CORNER BEING COMMON TO THE SOUTHWEST CORNER OF LOT 1 OF PIERCE COUNTY SHORT PLAT RECORDED UNDER RECORDING NO RECORDS OF SAID COUNTY; THENCE SOUTHEASTERLY ALONG THE SOUTH LINE OF SAID LOT 1 TO THE SOUTHEAST CORNER THEREOF; THENCE Agenda Packet p. 104 of 158 Exhibit A to Ordinance No s Page 3 of 9

105 Exhibit A to Ordinance No s NORTHEASTERLY ALONG THE EAST LINE OF SAID LOT 1 TO THE SOUTHERLY MARGIN OF CHURCH LAKE ROAD AND THE INTERSECTION WITH THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO RECORDS OF SAID COUNTY; THENCE ALONG SAID CITY LIMIT S LINE AND SAID SOUTHERLY MARGIN NORTHWESTERLY, NORTHERLY AND WESTERLY TO THE NORTHEAST CORNER OF THE PLAT OF KELLY CREEK VISTA AS RECORDED UNDER RECORDING NO RECORDS OF PIERCE COUNTY AND THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. NUMBER 560; THENCE ALONG SAID CITY LIMIT S LINE SOUTHERLY ALONG THE EAST LINE OF SAID PLAT TO THE SOUTHEAST CORNER OF LOT 26 OF SAID PLAT; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE WESTERLY ALONG THE SOUTHERLY LINE OF LOT 26 AND ITS WESTERLY EXTENSION TO THE SOUTHEAST CORNER OF LOT 25 OF SAID PLAT; THENCE CONTINUING WESTERLY ALONG SAID CITY LIMIT S LINE AND THE SOUTHERLY LINES OF LOTS 25, 24, 23, 22, 21 AND 20 TO THE WEST LINE OF SAID PLAT AND THE EAST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 33; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE NORTH ALONG THE WEST LINE OF SAID PLAT AND THE EAST LINE OF SAID SUBDIVISION TO THE NORTHEAST CORNER OF SECTION 33, TOWNSHIP 20 NORTH, RANGE 5 EAST W.M. AND TO THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. 109; THENCE WEST ALONG SAID CITY LIMIT S LINE AND THE NORTH LINE OF SAID SECTION 33 TO NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 33 AND THE TRUE POINT OF BEGINNING. 1.3 Delany PAA. The Kelley Creek Vista PAA is legal defined as: A PORTION OF GOVERNMENT LOT 1 IN THE NORTHEAST QUARTER OF SECTION 2, TOWNSHIP 19 NORTH, RANGE 5 EAST, W.M., IN PIERCE COUNTY, WASHINGTON, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING ON THE CITY OF BONNEY LAKE CITY LIMIT S LINE AS ESTABLISHED BY ORDINANCE NO. 903, RECORDS OF SAID COUNTY, BEING AT THE SOUTHEAST CORNER OF SAID GOVERNMENT LOT 1, ALSO BEING THE SOUTHEAST CORNER OF TRACT C OF THE REPLAT OF VIEW ROYAL ESTATES AS RECORDED UNDER RECORDING NUMBER , RECORDS OF SAID COUNTY; THENCE NORTH ALONG SAID CITY LIMIT S LINE AND THE EAST LINE OF SAID LOT 1 AND THE EAST LINE OF SAID TRACT C TO THE SOUTHERLY MARGIN OF SR 410; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE, Exhibit A to Ordinance No s Page 4 of 9 Agenda Packet p. 105 of 158

106 Exhibit A to Ordinance No s WESTERLY ALONG SAID SOUTHERLY MARGIN TO THE NORTHEAST CORNER OF LOT 1 OF PIERCE COUNTY SHORT PLAT AS RECORDED UNDER RECORDING NUMBER RECORDS OF SAID COUNTY AND THE WESTERLY MARGIN OF 229TH AVE EAST; THENCE CONTINUING ALONG SAID CITY LIMIT S LINE, SOUTH ALONG SAID WESTERLY MARGIN TO THE NORTHEAST CORNER OF LOT 20 OF SAID REPLAT OF VIEW ROYAL ESTATES; THENCE LEAVING SAID CITY LIMIT S LINE, EASTERLY ALONG THE NORTH LINE EXTENDED OF SAID LOT 20 TO THE SOUTHWEST CORNER OF TRACT B OF SAID REPLAT; THENCE CONTINUING EASTERLY ALONG THE SOUTHERLY LINE OF SAID TRACT B AND TRACT C OF SAID REPLAT TO THE SOUTHEAST CORNER OF SAID TRACT C AND THE POINT OF BEGINNING. SECTION 2. GOVERNMENTAL SERVICES 2.1 Transition of Governmental Services. The transition of governmental services is provided for in the Kelly Creek and Delany Annexation Memorandum of Understanding, as set forth in Exhibit B to Pierce County Ordinance No SECTION 3. TERM 3.1 Duration. This Agreement shall remain in effect for five (5) years after the Annexation Date. 3.2 Termination Either Party may terminate the Agreement upon ninety (90) days advance written notice to the other party. Notwithstanding the expiration or earlier termination of the Agreement, the County and City shall remain responsible for fulfilling any outstanding obligations under this Agreement that were incurred prior to the date on which the Agreement expired or terminated This Agreement shall be terminated immediately if a referendum petition is filed within the allotted time period and the resulting annexation vote defeats the proposed annexation(s). Agenda Packet p. 106 of 158 Exhibit A to Ordinance No s Page 5 of 9

107 Exhibit A to Ordinance No s SECTION 4. GENERAL PROVISIONS 4.1 Notices, Demands and Communications. Formal notices, demands, and communications between the City and the County shall be sufficient if given and shall not be deemed given unless dispatched by certified mail, postage prepaid, returned receipt requested, or delivered personally, to the principal offices of the City and the County as follows: City: Mayor City of Bonney Lake PO Box 7380 Bonney Lake, WA County: Office of the Pierce County Executive County-City Building, Room Tacoma Avenue South Tacoma, WA Director: Pierce County Planning and Land Services Public Services Building 2401 South 35th Street, Room 175 Tacoma WA Indemnification and Defense Pierce County shall defend, indemnify, and save harmless Bonney Lake, its officers, employees, and agents from any and all costs, claims, judgments, and awards of damages, resulting from the sole negligence of the County, its officers, employees, or agents associated with this agreement. In executing this agreement, the County does not assume liability or responsibility for or release Bonney Lake from any liability or responsibility to the extent that such liability or responsibility arises from the existence or effect of a Bonney Lake ordinance, rule, regulation, resolution, custom, policy, or practice. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such Bonney Lake ordinance, rule, regulation, resolution, custom, policy, or practice is at issue, Bonney Lake shall defend the same at its sole expense and if judgment is entered or damages awarded against Bonney Lake, the County or both, Bonney Lake shall satisfy the same, including all chargeable costs and attorney fees. Exhibit A to Ordinance No s Page 6 of 9 Agenda Packet p. 107 of 158

108 Exhibit A to Ordinance No s Bonney Lake shall defend, indemnify, and save harmless Pierce County, its officers, employees, and agents from any and all costs, claims, judgments, and awards of damages, resulting from the sole negligence of Bonney Lake, its officers, employees, or agents associated with this agreement. In executing this agreement, Bonney Lake does not assume liability or responsibility for, or release Pierce County from, any liability or responsibility to the extent that such liability or responsibility arises from the existence or effect of a Pierce County ordinance, rule, regulation, resolution, custom, policy, or practice. If any cause, claim, suit, action, or administrative proceeding is commenced in which the enforceability and/or validity of any such Pierce County ordinance, rule, regulation, resolution, custom, policy, or practice is at issue, Pierce County shall defend the same at its sole expense and if judgment is entered or damages awarded against the Pierce County, Bonney Lake or both, Pierce County shall satisfy the same, including all chargeable costs and attorney fees Should Pierce County be determined liable for said damages caused by or resulting from the concurrent negligence of the County and Bonney Lake, Bonney Lake shall indemnify Pierce County only to the extent of Bonney Lake s negligence and Pierce County shall indemnify Bonney Lake only to the extent of the Pierce County s negligence In the event that one party defends the other, the defending party shall have the sole right to select legal counsel to defend against the claim, demand, or cause of action. In the event that defense is undertaken, the defending party shall be empowered to settle or compromise the claim, demand, or cause of action, and the defended party shall not interfere therewith, provided that if the defending party settles a claim, demand, or cause of action against the other party without that party s consent, the non-consenting party shall not be liable for any settlement or fees. Agenda Packet p. 108 of 158 Exhibit A to Ordinance No s Page 7 of 9

109 Exhibit A to Ordinance No s 4.3 Amendments. This Agreement may be amended or modified in accordance with applicable laws, rules or regulations, and upon mutual consent of the Parties, such mutual consent of the Parties shall be evidenced by a written amendment signed by the Parties. 4.4 Rights Reserved. Nothing in this Agreement is intended to waive or limit the rights of the Parties to require mitigation for any impact as allowed by federal, state, or local laws and ordinances including but not limited to environmental impacts governed by Chapter 43.21C RCW or mitigation fees governed by RCW Non-Liability of City, Officials, Employees, and Agents. No member, official, employee, or agent of the City or County shall be personally liable with to any obligation, terms, covenants, and conditions this Agreement. 4.6 Title of Parts and Sections. Any titles of the parts, sections, or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any part of its provisions. 4.7 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of the State of Washington. 4.8 Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding, or unenforceability. 4.9 Legal Actions. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement, or to collect damages as a result of any breach of the Agreement, the party prevailing in any such action shall be entitled to recover against the party not prevailing all reasonable attorneys fees and costs incurred in the action Joint Board. This Interlocal Agreement does not establish or create a separate legal administrative entity, joint board, or joint budget authority to accomplish the purposes of the Agreement Recordation. Within ten (10) days after the effective date of this Agreement, the Clerk of the County Council shall have this Agreement recorded with the County Auditor/Recorder Exhibit A to Ordinance No s Page 8 of 9 Agenda Packet p. 109 of 158

110 Exhibit A to Ordinance No s of Pierce County. In the alternative, the Parties may mutually agree to post this Agreement electronically on their websites Execution of Other Documentation. The City and the County agree to execute any further documentation that may be necessary to carry out the intent and obligations under this Agreement Complete Understanding of the Parties. This Agreement is executed in two (2) duplicate originals, each of which is deemed to be an original. This Agreement consists of nineteen (9) pages and constitutes the entire understanding and agreement of the Parties. CITY OF BONNEY LAKE Neil Johnson Mayor By direction of the Bonney Lake City Council PIERCE COUNTY Pat McCarthy Pierce County Executive in Open Public Meeting on Dated: Authenticated by: Bonney Lake City Clerk Approved as to Form: City of Bonney Lake Attorney Dated: Attested by: Pierce County Council Clerk Approved as to Form: Pierce County Attorney Agenda Packet p. 110 of 158 Exhibit A to Ordinance No s Page 9 of 9

111 Exhibit B to Ordinance No s MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF BONNEY LAKE and PIERCE COUNTY, 2016 Exhibit B to Ordinance No s Page 1 of 21 Agenda Packet p. 111 of 158