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LONGVIEW CITY COUNCIL AGENDA FOR

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LONGVIEW CITY COUNCIL AGENDA FOR Powered By Docstoc
					                       Longview City Council Agenda
                        September 9, 2004 - 7:00 p.m.

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hearing impaired is also available. Please let us know 48 hours in advance if you will need
any special accommodations to attend the meeting.


01. CALL TO ORDER                                                             Mayor Mark McCrady

02. INVOCATION                                       Pastor Charles Fischer, New Life Fellowship

03. ROLL CALL

04. APPROVAL OF MINUTES of August 26, 2004
      (LINK TO PAPERWORK)
05. CHANGES TO THE AGENDA

06. PRESENTATIONS & AWARDS

07. CONSTITUENTS COMMENTS

08. PUBLIC HEARINGS
    A. PUBLIC HEARING: LOCAL LAW ENFORCEMENT BLOCK GRANT (LLEBG)
       The Police Department applied for and received a Local Law Enforcement Block Grant
       (LLEBG). The grant award amount is $11,956 with a cash match in the amount of $1,328. The
       Local Law Enforcement Block Grant will fund a portion of the school officer program. The
       estimated cost of the school officer program for 2005 is $190,000. One of the requirements of
       drawing down the grant funds is to hold a public hearing.

       The school officer program is funded through a combination of grants and general fund monies
       from the Longview School District and Longview Police Department. The cost to operate the
       school officer program is funded by 2 grants and the remaining costs are split between the
       Longview Police Department and Longview School District. The breakdown of that funding is as
       follows:

       Community Trade & Economic Development Grant                  13.20%
       Local Law Enforcement Block Grant                              6.30%
       Longview School District                                      40.25%
       Longview Police Department                                    40.25%
                                                 TOTAL:             100.00%

       A portion of Longview Police Department’s share of the program goes towards the cash match.

       RECOMMENDED ACTION:
       No motion required.
      (LINK TO PAPERWORK)
09. BOARD & COMMISSION RECOMMENDATIONS - None
10. ORDINANCES & RESOLUTIONS
    A. ORDINANCE NO. 2902, 2004 WATER/SEWER BOND REFUND (INTRODUCTION
       OF LINDSAY SOVDE, SEATTLE NW SECURITIES)
     Ordinance No. 2902 provides for the issuance and sale of $1,970,000 principal amount of water
     and sewer revenue refunding bonds to refund certain outstanding water and sewer revenue bonds
     of the City. The purpose of this refunding is to take advantage of some of the lowest interest rates
     that the public bond market has witnessed in the last 25 years. Seattle Northwest Securities, the
     City’s bond underwriter has provided an estimated true interest cost of 3.262% for these
     refunding bonds. The existing average coupon rate is 5.66%. At these rates Seattle Northwest
     Securities has calculated the City of Longview Water/Sewer Fund will realize an estimated net
     present value savings of $97,106.

     RECOMMENDED ACTION:
     Motion to approve the Preliminary Official Statement for the 2004 Water and Sewer Revenue
     Refunding Bonds, and adopt Ordinance No. 2902.
      (LINK TO PAPERWORK)
11. MAYOR’S REPORT AND COUNCILMEMBERS’ REPORTS

12. CONSENT CALENDAR
    A. APPROVAL OF CLAIMS
       (LINK TO PAPERWORK)
    B. LIABILITY CLAIMS
       (LINK TO PAPERWORK)
    C. STREET USE REQUEST #S-04-22, MARK MORRIS WATER POLO TEAM, 9/11,
       9/18, 9/25
       (LINK TO PAPERWORK)
13. LIQUOR LICENSE APPLICATIONS
    A. NEW LICENSES
     Lui’s Panda Inn, Inc., Jian-xi Luo, Jing-wen Luo, and Shao-me Mok have requested a Liquor
     License from the Washington State Liquor Control Board requesting to serve spirits, beer and/or
     wine in a restaurant/lounge named Panda Inn Restaurant & Lounge. This restaurant will be
     located at 919 15th Ave, the former site of the Pantry Restaurant.

     Background checks have been performed on the location and the parties involve and the police
     department has no concerns with either the applicants or the location.

     RECOMMENDED ACTION:
     Motion as desired by Council.
     (LINK TO PAPERWORK)
  B. ASSUMPTION OF LICENSE
     Moon Ki Min, Hyun Mee Min, and MH & INA Corporations have applied for an assumption
     from the Store & Deli at 447 Oregon Way for grocery store beer and wine sales. Background
     checks have been performed on the location and the parties involved. The police department has
     no concerns with any of these applicants or the location.

     RECOMMENDED ACTION:
     Motion as desired by Council.
     (LINK TO PAPERWORK)




                                                  2
14. CITY MANAGER’S REPORT
    A. MID-YEAR BUDGET REPORT, PRESENTATION BY KURT SACHA, FINANCE
       DIRECTOR
    B. 05/06 BUDGET, OUTSIDE AGENCY REQUEST PRESENTATIONS
     As a part of the 2005-2006 budget process, Council had requested that citizens be given several
     opportunities to provide input into the 2005-2006 budget. In June community agencies were
     advised that the City would take applications for funding from the 2005-2006 biennial budget
     from outside agencies meeting certain criteria. A letter was sent out to those agencies that had
     applied for financial support during the 2003-2004 budget process. A press release was also
     issued on July 14, 2004, explaining the outside agency application and funding process for the
     2005-2006 budget cycle. The letter and press release advertised August 20th as the deadline for
     submitting the applications. The letter also indicated that the agencies would have an opportunity
     to present their requests to Council at their Sept 9 regular Council meeting.

     RECOMMENDED ACTION:
     No action is required. Council will consider outside agency requests at their October 9, 2004
     budget workshop for inclusion into the 2005/06 biennial budget.
       (LINK TO PAPERWORK)
15. MISCELLANEOUS INFORMATION ONLY
    A. BUSINESS LICENSES
       (LINK TO PAPERWORK)
    B. DOWNTOWN ADVISORY COMMITTEE MINUTES OF 7/9/04
       (LINK TO PAPERWORK)
    C. PARKS AND RECREATION ADVISORY BOARD MINUTES OF
       7/15/04 (LINK TO PAPERWORK)
       8/19/04 (LINK TO PAPERWORK)

16. ADJOURNMENT


NEXT COUNCIL MEETINGS:
THURSDAY, SEPTEMBER 23, 2004 AT 7:00 P.M. – REGULAR COUNCIL MEETING
THURSDAY, OCTOBER 14, 2004 AT 7:00 P.M. - REGULAR COUNCIL MEETING

NEXT COUNCIL WORKSHOPS:
THURSDAY, SEPTEMBER 16, 2004 AT 7:00 P.M. – UTILITY RATE REVIEW
THURSDAY, OCTOBER 7, 2004 AT 7:00 P.M. – HEALTHCARE INDUSTRY – 4-YEAR
COLLEGE PROGRAMS/SHAY LOCOMOTIVE
SATURDAY, OCTOBER 9, 2004 AT 9:00 A.M. – PRELIMINARY 05/06 BUDGET REVIEW




                                                 3
                                                                                     Item 04




                             MINUTES OF THE REGULAR SESSION
                              OF THE LONGVIEW CITY COUNCIL
                             HELD THURSDAY, AUGUST 26, 2004


1. CALL TO ORDER
The meeting was called to order at 7:00 p.m. by Mayor Pro Tem Jensen.

2. INVOCATION/FLAG SALUTE
The invocation was pronounced by Pastor Mark Schmutz, Northlake Baptist Church. The flag
salute was led by Councilwoman Leber.

3. ROLL CALL
Present:                    Mayor Pro Tem Don Jensen
                            Councilman Kurt Anagnostou
                            Councilman Ron DiRe-Day
                            Councilwoman Ramona Leber
                            Councilwoman Susan Stockard
                            Councilman Dennis Weber
                            Assistant City Manager Bob Gregory
                            Assistant City Attorney Stephen Shuman
                            Deputy City Clerk Ann Davis

Absent/Excused:             Mayor Mark McCrady

City Staff Present
Richard Bemm, Director of Parks & Recreation; John Brickey, Assistant Director of Community
Development; Jeff Cameron, Public Works Director; Judy Jones, Information Technology
Director; Daryl McDaniel, Fire Chief; Alex Perez, Police Chief; Kurt Sacha, Finance Director;
Chris Skaugset, Library Director; Vicki Taylor, Human Resources Director; and Robb Millspaw,
Principal Planner.

4. APPROVAL OF PREVIOUS MINUTES
Councilman DiRe-Day reported the Minutes should state “absent/excused” for his absence on
August 12. On a motion duly made and passed, the reading of the minutes of the regular
Council meeting held August 12, 2004, copies of which had been submitted to the Mayor
and members of the City Council, was waived and the minutes as corrected were approved
as if read.

5. CHANGES/REVISIONS TO THE AGENDA
No changes were made to the agenda.

6. PRESENTATIONS & AWARDS

A. Proclamation: Good Neighbor Day, September 1, 2004.
Mayor Pro Tem Jensen invited Dora Davis of Banda’s Bouquets to the podium to receive this
Proclamation. The Mayor Pro Tem read the Proclamation declaring September 1, 2004, Good
City Council Minutes
August 26, 2004
Page 2


Neighbor Day in the City of Longview. The Proclamation gave the history of Good Neighbor
Day, which was adopted by FTD florists worldwide to encourage friendliness among citizens.
Participating FTD florists give away bouquets of a dozen flowers on September 1, and encourage
recipients to retain one flower and give the balance out to friends and acquaintances.

Dora Davis thanked Council for this recognition, and invited everyone to “return to friendliness”
by visiting Banda’s Bouquets on September 1, and picking-up a dozen flowers, while supplies
last, to share with friends.

7. CONSTITUENTS' COMMENTS

A. Trees and Sewer Lines.
Sid Klein, 1221 Spruce Street, asked Council to look at the packet of information he had
furnished them. Many years ago in his neighborhood some very large trees were planted over
the sewer line. The roots of these trees (some type of giant sequoia, he believes) are now
surfacing, invading area properties, cracking and upheaving patios, and infiltrating side sewer
lines as well as the sewer main. He hoped the City would be able to help his neighborhood
address this problem.

The city line is on private property. Prior attempts to contact someone at the City had failed, and
he had not received a call back. Mr. Gregory stated he and staff would look at this packet of
information and determine who on staff should be speaking with Mr. Klein in an attempt to
remedy this situation.

B. Washington State Constitution.
Iva O’Shaunessey, 140 Monticello Drive, drew Council’s attention to its continuing violation of
the Washington State Constitution. Since she previously furnished each Councilmember a copy
of the Washington State Constitution, she knows Council has seen it and is aware that the
Constitution prohibits any religion being exercised on any public properties. She asked Council
to desist violating the Constitution.

C. Old West Side Neighborhood Association.
Representatives of a new neighborhood organization, the Old West Side Neighborhood
Association, gathered at the podium. Doris Disbrow, 1639 21st, chairman, introduced the other
officers: Elaine Helvey, 1624 – 21st; and Patrick Boerner, 1614 - 22nd, and Janelle Hofmann.
This association’s goal is to “improve, protect and preserve the beauty, desirability and value of
the Old West Side residential neighborhood within the City of Longview.” They have been
meeting informally for two years, and have now applied for non-profit status, and will soon
obtain a business license.

Council will receive a copy of their letter which details the organization’s concerns. Mrs.
Disbrow spoke briefly about a number of concerns on the list: the issuance of building permits
for additions not in character with the existing house or neighborhood; zoning requests for other
than single-family dwellings; permits for demolition of existing homes without notifying
neighbors; alterations made to homes without building permits; uneven sidewalks; shrubs and
trees that need to be trimmed; and the problem of cars parked perpetually on lawns. Mrs.
Disbrow said their previous contacts with staff have not brought their hoped-for results; they
                                                                            City Council Minutes
                                                                                 August 26, 2004
                                                                                          Page 3

believe many of the City’s ordinances are not being adequately enforced. As an example, she
stated area residents have quit calling to report property crimes because Police do not respond.

Councilman Anagnostou felt that many of the association’s concerns could be addressed simply
by going down their list with the appropriate staff person. Assistant City Manager Bob Gregory
will review their concerns and assign the appropriate staff to contact the organization.

D. Teen Council Update.
Teen Council Advisor Pat Martin advised that most of the Teen Council graduated last May. It
was her pleasure to introduce the new students comprising the Teen Council. She introduced
Mayor Emily Dieschel, Mark Morris High School (MM), who introduced the other members of
the Council: Mayor Pro Tem Katelyn Melland (MM); Secretary Kyla Sullivent, R A Long High
School (RAL); Co-Historians Adam Clarno (RAL) and Morgan Race (MM); Publicity Chair
Melissa Clarno (RAL); representatives Chelsea Ashcraft (MM), Stephanie Hanna (MM), Brian
Cenci (MM); and other members present: Kimberley Lee (MM), Carol Pierson (RAL), and
Hanna Sutor (RAL).

Mayor Pro Tem Jensen welcomed the Teen Council members to the meeting, and said Council
expects great things from them.

E. Mr. Wagle’s Comments.
Longview resident L. S. Wagle reiterated his complaint about Council practicing religion at a
public meeting. He would prefer the ministers deliver their sermons in their own churches.

8. PUBLIC HEARINGS

A. Vacation of Street Right-of-Way: Colorado, between 25th and 26th Avenues.
Assistant City Manager Gregory asked Public Works Director Jeff Cameron to give the details of
this request. Mr. Cameron pointed out that Council had in front of them a packet of revised
information regarding this petition.

Mr. Cameron explained his department had received a Petition to Vacate the 2500 block of
Colorado Street, between 25th and 26th Avenues, and 130 feet of the adjacent alley, located
within the Plat of St. Helens Addition No. 3. This area is south of St. Rose Church, which is the
petitioner in this process.

Resolution No. 1732 permits the City to charge vacation fees of up to 100% of the appraised
valuation of the area being vacated. This amount is calculated by determining square footage
abutting each property starting at the street or alley centerline. Mr. Cameron showed the
amounts each adjacent property owner would be charged, with St. Rose paying the bulk of the
cost at $39,036.50. An appraisal of the property has not been performed; calculations are made
based on the Cowlitz County Assessor’s assessed values.

If Council decides to grant the vacation petition, utility easements in Colorado Street and the
affected alley would have to be retained. However, staff has proposed that St. Rose take over
responsibility of the sewer main at the vacation point. If improvements are made to Colorado
Street that affect stormwater drainage from 25th to 26th, alternate provisions would have to be
constructed at St. Rose’s expense.
City Council Minutes
August 26, 2004
Page 4



Another condition of approval would be dedication of a new access alley to the existing alley.
Mr. Cameron showed two variations of a proposed alley access road, both of which would
require sufficient turning radius to allow large vehicles, such as Waste Control’s collection
vehicles, to navigate the turn. The church’s preferred option (identified as the “yellow”
alternative) would locate the alley access close to a neighboring residence and require the
relocation of a power pole. The other option (the “blue” choice) would move the alley access
northerly, farther away from the residence, and would preclude the necessity of moving the
power pole; however, this would require a larger parcel of St. Rose property be dedicated to the
City. Mr. Cameron noted there are still details of the vacation to be worked out.

Completing his presentation, Mr. Cameron noted staff has chosen to remain neutral on this
petition, and only made suggestions for required conditions should Council desire to grant the
petition for vacation. State law required a public hearing be held within sixty days of receipt of
the petition; however, a decision on that petition does not have to be returned within those sixty
days.

Referring to the residences abutting 25th Avenue as neighbors #1 and #2 (Boerner and Martin,
respectively), Councilman Anagnostou questioned whether they had voiced concerns about
losing rear access to their properties. Mr. Cameron advised the City mailed and placed
doorhanger material to them, but has not heard from any of the adjoining neighbors. St. Rose
Church did hold a public meeting with all neighborhood residents. Mr. Cameron stated neighbor
#3, south of Father Mulligan Hall, fronting 26th Avenue, had initially objected to the proposal,
but now he understood that her opposition had been dropped.

At 7:43, the public was invited to speak.

Longview resident Dave Westerlund expressed his opinion that a lot of time and money had
already been expended in putting together this study and presentation; he wondered if perhaps
City staff were treating the church’s request with more resources than someone else would
receive. He also stated neighbors #1 and #2 must be contacted by staff.

Mr. Gregory commented that staff dedicates the amount of time necessary to anyone who
presents a petition for vacation; no special treatment was afforded to St. Rose. Councilman
DiRe-Day repeated this point, to emphasize this is a service the City offers anyone, not just the
church.

Project Architect Bob Shaw introduced Kay Purcell, Principal at St. Rose School. Mrs. Purcell
advised she had graduated from St. Rose in 1965. The school has not been expanded since its
construction in the 1950’s, when one room per grade was deemed sufficient. Two portable
classrooms have been added, a music room has been created, and even the staff room has been
taken over for student needs. The available space is no longer adequate for the students: the
school would like to add new library space, science and computer labs, and an art room. This
new addition will take up the existing playground. Plans for Colorado Street are for a
playground area and for student pick-up and drop-off.
                                                                              City Council Minutes
                                                                                   August 26, 2004
                                                                                            Page 5

A member of the St. Rose School Advisory Board, Dr. Rick Green, 40 View Ridge Court, stated
the School has looked at many options for creating the additional needed space. The school
wants to be a good citizen and steward; the proposed option was deemed the best and, hopefully,
will not have any adverse impacts on the neighborhood.

Howard Schaefer, 571 – 26th Avenue, said he understood why the school needs to expand,
however, it is located in a residential area, and the change will affect the area with increased
traffic. He asked if the Fire Department vehicles would be able to negotiate the sharp turn
proposed for the alley access.

Mr. Cameron stated the Fire Department had reviewed the proposal, and had no concerns. The
Fire Department approaches fires in this area from the main streets.

Another question concerned the possibility of increased parking on 25th Avenue; Mr. Cameron
advised the topic of parking restrictions has not been discussed.

Mr. Schaefer said the resident just south of Mulligan Hall (neighbor #3) has lived there a long
time. She initially was opposed to the proposal, because this would create an alley on two sides
of her house. Mr. Schaefer concluded by stating he was not in favor of this change.

L. S. Wagle stated he had no trouble with the street vacation as long as the church paid its fair
compensation to the City. He railed against any subsidy of churches by the taxpayers, including
subsidy by tax exemption.

Architect Bob Shaw pointed out the series of drawings he had distributed for Council’s review.
Mr. Shaw said he spoke personally with Mr. Willis from Waste Control, and Mr. Willis
confirmed the proposed turn radius would be sufficient for his equipment. Waste Control needs
to be able to approach the alley from both directions.

Mr. Shaw showed a map depicting the area of the alley to be vacated in comparison to the new
alley which must be dedicated. The alleys contain relatively equal square footage and thus could
be considered an equal trade. With an even trade alley-for-alley, the only compensation due
would be for the vacated portion of Colorado Street, minus the easement for turning radius.
Councilman Weber inquired whether the church planned to pay the vacation assessments for
neighbors #1 and #2. Mr. Shaw said that had not been decided, and he could not commit for the
church, but he believed that possibility was on the table. Mr. Weber advised he thought the
innocent abutting property owners should not have to pay for something they do not want.

In addition to providing playground space, the church’s vision for Colorado Street is for a safe
drop-off point for children. The gates would be open during morning drop-off and afternoon
pick-up. Mr. Shaw believed this would actually reduce the traffic on adjoining streets by getting
cars off the main roads.

Iva O’Shaunessey said Council should postpone any decision on this street vacation until after
receiving written agreements/confirmations from both St. Rose School and Waste Control. Both
of these entities are private companies.
City Council Minutes
August 26, 2004
Page 6


Bruce Kurtz, 627 – 25th Avenue, objected to the vacation citing increased traffic on 25th and
26th. He also was concerned about the woman who lived south of Father Mulligan Hall
(neighbor #3), saying the church did not show much consideration for her. Mr. Kurtz said St.
Rose has a lot of property across the street; they have constructed a big parish and now they
cannot use it. He concluded by stating he was opposed to this proposal.

Jennifer Crane, 656 26th, said she was opposed to the proposal. She also has spoken with
neighbor #3, and said she had been authorized to protest the proposal on the neighbor’s behalf.
Ms. Crane cited increased traffic and a possible drop in property value as reasons for her
opposition.

There being no further public comment, the public hearing was closed at 8:03 p.m.

Councilman Weber asked about setback requirements from streets and alleys. Assistant Director
of Community Development John Brickey replied the standard setback from the front property
line is 25’; side property lines can be as little as 4’. He said he would have to do some research
to see whether there are requirements for a setback from a side alley; this situation has not come
up too many times.

Referring to the slide that showed the possible alley access plans, Councilman Anagnostou said
that the blue model would give neighbor #3 a better buffer from the alley. Mr. Cameron guessed
the blue plan would give neighbor #3 about a 17’ buffer versus the 4’ side yard under the yellow
proposal.

Councilman Weber said it would be difficult to determine whether this would affect traffic
patterns without a traffic count. According to Mr. Cameron, traffic counts aren’t normally done
except on access roads or larger; however, staff could do such a count, at Council’s request.
Should a traffic count be directed, Mr. Cameron suggested it take place after school commences
and things have settled into routines. The only traffic count data available for the area is for 26th
Avenue; this data was compiled in March 1999. Average daily trips on 26th were 2662 per day;
peak traffic times were 8:00 a.m. and 3:00 p.m.

Councilman DiRe-Day asked for clarification on the vacation cost. Mr. Cameron referred to the
slide that showed vacation costs. The figure of $39,036.50 initially given as St. Rose’s cost
included both Colorado Street and the alley vacation. If the alley vacation and the new alley
access dedication would be considered an equal trade, the figure of $33,572.00 would be payable
for Colorado street only. Deducting the $2,736.00 for the value of St. Rose’s easement for the
turning radius, the total cost to St. Rose would be $30,836.00.

The City utilized the County Assessor’s assessment rates when calculating vacation costs. Mr.
Cameron noted the assessed rate for church property was approximately $2.00 less per square
foot than residential property.

Councilman DiRe-Day surmised that using Colorado as a drop-off might actually alleviate traffic
on the main streets. Mr. Cameron agreed that this change would definitely affect traffic patterns.
Councilwoman Leber inquired whether the school would need to obtain a special use permit,
                                                                               City Council Minutes
                                                                                    August 26, 2004
                                                                                             Page 7

since residential property would be converted to church/school property. Mr. Cameron and Mr.
Brickey both thought that this would require an application for special use permit.

Council discussed their options and whether they should postpone a decision on this matter.

Mr. Gregory suggested Council take no action pending receipt of more information from staff.
He understood that Council wanted additional information regarding setbacks; special use
permits; and a traffic analysis. Councilwoman Leber said she also would like neighbor #3’s
property line determined, the unresolved issues of parking resolved, and suggested a valuation of
the property be undertaken. Councilman DiRe-Day suggested looking at other recent vacations
the City has completed and make sure this process follows exactly the same steps. As a matter
of principal, Mr. Gregory stated the fair market value of the property needs to be established.

Council determined to set further consideration on this matter over until October 14, 2004,
in order to allow staff time to accumulate the requested information.

9. BOARD & COMMISSION RECOMMENDATIONS

A. Planning Commission Recommendation No. PC 2004-8, Preliminary Subdivision Plat for
Willow Pointe PUD Phases II and III.
On August 4, 2004, the Planning Commission reviewed and forwarded a recommendation of
approval for the Preliminary Subdivision Plat of Phases II and III of the Willow Pointe Planned
Unit Development. Council previously approved the Willow Pointe Planned Unit Development
Master Plan and the Preliminary Subdivision Plat of Phase I on January 8, 2004. Phases II and
III were forwarded by the Planning Commission with a unanimous recommendation of approval,
subject to the original 12 conditions of approval that were attached to the Willow Pointe Planned
Unit Development rezoning petition.

The subject property lies west of and adjacent to Mt. Solo Road, and is bordered by drainage
ditches on three sides. Phase II contains 158,352 square feet of area (3.64± acres), and will
consist of three single family lots and 10 duplex lots, for a total of 23 dwelling units. Phase III
contains 137,752 square feet of area (3.16± acres), and will consist of 8 single family lots and
three duplex lots, for a total of 14 dwelling units.

At their regular meeting of December 3, 2003, the Planning Commission unanimously
recommended approval of the petition to rezone this parcel from S-4 to PUD, and to accept the
Master Site Development Plans and the Preliminary Plat of Phase I of the Willow Pointe PUD,
subject to 12 conditions of approval.

In their recommendation for Phases II and III, the Planning Commission adopted staff’s findings
and recommendation of five plat-specific conditions (taken from the original 12) of approval that
are applicable to both Preliminary Plat petitions. The wording of one original condition of
approval attached to the Preliminary Plat of Phase I was slightly modified in order to clarify the
intent of the condition. Petitioner accepted the modified language.
City Council Minutes
August 26, 2004
Page 8


Staff recommended Council accept the recommendation of the Planning Commission on Case
No. PC 2004-8, and approve the petition, subject to the 12 original conditions of approval, and
subject to the five preliminary plat-specific conditions of approval also recommended.

Councilman Weber inquired whether this development was still a gated community. Mr.
Brickey responded in the affirmative, but noted the sidewalks were not gated. Councilwoman
Leber asked if there were any small lots in this plat. Mr. Brickey showed an overhead of the
proposed plat and said no small lots had been identified.

On a motion made by Councilman Anagnostou, seconded by Councilman DiRe-Day, and
passed by a vote of 5 "Aye" votes by Mayor Pro Tem Jensen and Councilmembers
Anagnostou, DiRe-Day, Leber, Stockard, and one "Nay" vote by Councilman Weber, the
Council accepted the Planning Commission’s Recommendation No. PC 2004-8.

B. Planning Commission Recommendation No. PC 2004-9, Preliminary Subdivision Plat for
Nagle Addition No. 3.
The Planning Commission reviewed on August 4, 2004, and forwarded a recommendation of
approval of the Preliminary Subdivision Plat of the Nagle Addition No. 3 subdivision. The
proposed subdivision consists of seven single-family lots, all served from one cul-de-sac street.
The Planning Commission approved the petition, subject to 12 conditions of approval
recommended by staff, with the deletion of Condition #1a.

The subject property is located at 2330 – 36th Avenue, north of Ocean Beach Highway, and just
south of Oak Street. It is bordered by a CDID slough, which was relocated to its present course
in the summer of 1990. The project contains 1.85± acres, and will contain lots ranging from
6,233 square feet to 17,528 square feet in area. The overall density of the proposed development
is 3.78 units per acre. This density meets the density requirement specified in the
Comprehensive Plan for “Low Density Residential” development.

The applicant is also requesting concurrent approval of a variance to the minimum front yard
setback requirement for three lots. The variance requested seeks a setback of twenty (20’) feet
for Lots #3, #4 and #5, due to the configuration of the lots. In their recommendation, the
Planning Commission also approved this request. Staff recommended Council acceptance of
Planning Commission’s recommendation in No. PC 2004-9.

It was moved by Councilman Weber, and seconded by Councilwoman Stockard, to accept
the Planning Commission’s Recommendation No. PC 2004-9.

Mr. Brickey presented an overhead of this proposed plat. He noted that setback variances are not
uncommon on unusual shaped lots. This type of setback variance is normally requested on a
case-by-case basis. In this instance, the variances are requested in order to allow the residences
to front the street in an even, pleasing fashion. Councilwoman Leber asked several questions,
then said she had a challenge approving a plat that had been developed with setback variances
included in the original design.
                                                                            City Council Minutes
                                                                                 August 26, 2004
                                                                                          Page 9

Developer Howard Nagle and consultant Ed DeVries addressed Council regarding this project.
Mr. DeVries stated the requested 5’ setback reduction might not apply to the entire house; only a
portion of the house, say the garage, might be within the 25’ normal setback. This particular plat
was initially developed by Joe Browning in the 1990’s and approved at that time. He did not
pursue development. This is the exact same layout he had proposed; unfortunately, there are not
too many creative ways to put the access street in to the development. Mr. DeVries stated this
will be an attractive housing development.

Principal Planner Robb Millspaw explained that if the access street were moved to the north,
then two of the lots would not have the required 50’ frontage on the main street. Mr. Millspaw
commented that this type of development is termed an “infill” development. He advised Council
they would be seeing more of these infill developments in the future. The unique size and shape
of lots in infill developments frequently will require setback variances.

Upon a vote duly held, with 3 “Aye” votes by Councilmembers DiRe-Day, Stockard and
Weber, and 2 “Nay” votes by Councilmembers Leber and Anagnostou, the Planning
Commission’s Recommendation No. PC 2004-9 was accepted.

10. ORDINANCES & RESOLUTIONS – None.

11. MAYOR'S AND COUNCILMEMBERS’ REPORTS

Councilwoman Leber reported she had attended the funeral of former colleague John Crocker.
Mr. Crocker had served on the Council for 20 years, from 1980 – 1999. He served as Mayor
from 1994 – 1995. Also attending the funeral were Mayor McCrady, and Councilmembers
Weber and Jensen.

12. CONSENT CALENDAR
There being no items the Council wished removed from the Consent Calendar, a motion
was duly made and passed approving the items on the Consent Calendar as though acted
on individually.

A. Accounts Payable
Based upon the authentication and certification of claims and demands against the city, prepared
and signed by the City’s auditing officer, and in full reliance thereon, it is moved and seconded
as shown in the minutes of this meeting that the following vouchers/warrants are approved for
payment:

Second Half August, 2004 A/P Claims $995,983.99 (Check Nos. 250027 – 250375, inclusive)
First Half August, 2004 Payroll $749,735.99 ($175,382.32, Check Nos. 188448 – 188581,
       inclusive; $332,817.36, direct deposits; and $241,535.99, wire transfers)

B. Street Use Requests
The following street use request(s) was/were approved subject to any stipulations specified
during routine review by concerned departments:

       1) #S-04-21, Harvest Run, October 2, 2004
City Council Minutes
August 26, 2004
Page 10



C. Board & Commission Minutes

       1) Planning Commission Minutes of August 4, 2004

13. LIQUOR LICENSE APPLICATIONS
Prior to discussing liquor license applications, Mayor Pro Tem Jensen noted Council does not
approve or disapprove these applications; Council can only object to the issuance of a license if
it so desires.

A. Renewals.
The following establishments are up for renewal of their liquor licenses in November, 2004. The
Police Department has reviewed this list and has not recommended any action.

       Golden Palace Chinese Restaurant              Spirits/Br/Wn Rest Lounge
       1245 14th Avenue

       Industrial Way Food Mart                      Grocery Store – Beer/Wine
       1161 Industrial Way

       Judy’s Restaurant                             Beer/Wine Rest – Beer/Wine Off Prem
       1036 Washington Way

       Tennant Way 76                                Grocery Store – Beer/Wine
       1056 Tennant Way

       Vernie’s Pizza                                Beer/Wine Rest – Beer/Wine
       900 Triangle Mall

       Garibaldy Restaurant & Taqueria               Spirits/Br/Wn Rest Service Bar
       421 20th Avenue

       Nick’s AM/PM, Longview                        Grocery Store – Beer/Wine
       3798 Ocean Beach Highway

No Council action was taken on any of the renewal applications.

B. Change of Location.
Maximino M. Aguilar has requested a change of location for the sale of beer and wine at his
grocery store, El Campesino. The store will be relocating from 449 Oregon Way to 524 Oregon
Way. After a review of the situation, the Police Department reported no concerns with either the
applicant or the location.

No Council action was taken on this change to liquor license.

14. CITY MANAGER'S REPORTS
                                                                              City Council Minutes
                                                                                   August 26, 2004
                                                                                           Page 11

A. Set Public Hearing (9/23/04): Old West Side Historic Inventory Grant Completion.
The City successfully competed for grant monies to perform a Historic Inventory of the Old
West Side, Phase I. This was through the Certified Local Government program. In order to
conclude this phase of the grant study, it is necessary to hold a public hearing. Further
information on the grant and the resultant study will be presented at the public hearing. Staff
recommends Council establish a public hearing date of September 23, 2004.

On a motion made by Councilwoman Leber, seconded by Councilman Weber, and
unanimously passed with 6 "Aye" votes by Mayor Pro Tem Jensen and Councilmembers
Anagnostou, DiRe-Day, Leber, Stockard and Weber, the City Manager's recommendation
was accepted and approved.

B. Shoreline Permit Application, #SMP2004-1, Dredging of Cowlitz River for New Boat
Launch Ramp.
Mr. Gregory advised a Shoreline Management Substantial Development Permit/Conditional Use
Permit has been requested by the City of Longview Parks & Recreation Department to remove
river silt that has accumulated in the vicinity of the boat launch facility at Gerhart Gardens Park.
SEPA and JARPA applications/checklists were submitted for review and comment, as required.
The launch periodically becomes clogged with silt and sediment that travels down the Cowlitz
River. These permits are necessary in order to work in this water of the state. Parks Department
intends to utilize a hydraulic dredge to deepen the area at the launch so boaters can once again
use it.

Councilwoman Leber asked whether the City was still investigating construction of a jetty or
something in the river to prevent silt build up at this site. Rich Bemm, Director of Parks and
Recreation, said we are prohibited from putting any type of structure in the river that will affect
water flow. Dredge spoils will be used on other city properties, including as pre-load material at
the Mint Farm. This type of dredging produces a small amount of material on an ongoing basis,
so a large volume of material should not accumulate.

On a motion made by Councilman Weber, seconded by Councilman DiRe-Day, and
unanimously passed with 6 "Aye" votes by Mayor Pro Tem Jensen and Councilmembers
Anagnostou, DiRe-Day, Leber, Stockard and Weber, the City Manager's recommendation
was accepted and approved.

C. Water Master Plan Interlocal Agreement with Kelso and Cowlitz PUD No. 1.
State law requires that water systems prepare a water system master plan every six years. The
City’s current master plan, the Longview-Kelso Urban Area Comprehensive Water Master Plan,
was a regional effort between Longview, Kelso, and Cowlitz PUD No. 1, and was completed in
October 1999. An update of that plan is due by October 26, 2005.

The cities of Longview and Kelso, and the Cowlitz PUD, have again agreed to prepare a regional
water system master plan, and an interlocal agreement has been prepared to provide for sharing
in the cost of the new master plan. Preparing a regional master plan is beneficial to all three
entities because we can take advantage of common work effort to comply with many of the
content requirements for the Plan. In addition, the PUD is part owner of the Regional Water
Treatment plant, and obtains its water from the plant by wheeling it through Longview and Kelso
City Council Minutes
August 26, 2004
Page 12


transmission and distribution systems. Further, all three entities are interconnected and can
distribute water to each other and we each rely upon the same water source for our supply.

The cost of the contract is estimated at $200,000. (Actual cost is $191,643.00, as discussed
below.) Distribution of those costs were calculated upon a composite comparison of water
consumption and number of equivalent residential units for each party. Proportionate shares will
be as follows: City of Longview, 63.3%; City of Kelso, 22.6%; and Cowlitz PUD, 14.1%.

The City of Kelso and the PUD have already approved this interlocal agreement, and in
accordance with state law regarding selection of engineering consultants, the firm of Kennedy/
Jenks Consulting, Inc. has been selected to prepare the new regional master plan. The City of
Longview will contract with and administer the consultant contract.

Staff recommends Council authorize the City Manager to enter into this interlocal agreement
with Kelso and Cowlitz PUD No 1 on behalf of the City of Longview.

Councilman Weber asked how often the distribution of costs were updated. Assistant City
Manager Gregory advised he thought the consumption data was studied when this agreement
was devised.

On a motion made by Councilwoman Stockard, seconded by Councilman DiRe-Day, and
unanimously passed with 6 "Aye" votes by Mayor Pro Tem Jensen and Councilmembers
Anagnostou, DiRe-Day, Leber, Stockard and Weber, the City Manager's recommendation
was accepted and approved.

D. Water Master Plan Contract Agreement with Kennedy/Jenks.
Pursuant to the approval of the interlocal agreement above, between the Cities of Longview and
Kelso, and the Cowlitz PUD No. 1, this agreement is with the consultant Kennedy/Jenks for
preparation of the Longview-Kelso Urban Area Comprehensive Plan.

The cost to prepare the master plan is $191,643.00. Distribution of costs is as noted above: City
of Longview, 63.3%; City of Kelso, 22.6%; and Cowlitz PUD, 14.1%.

Staff recommends Council authorize the City Manager to enter into this interlocal agreement
with Kennedy/Jenks on behalf of the City of Longview, and as contracting agency for the
governments participating in the Longview-Kelso Urban Area Comprehensive Water Master
Plan.

Councilwoman Leber noted she was suffering from sticker shock; the $191,643.00 contract fee
seemed pretty expensive. Mr. Gregory agreed this type of work is not inexpensive. These funds
will come from the Water Utility Fund. While some of the work does require specialized
expertise, there are parts of the project that could be performed by staff, but staff does not have
the necessary time.

On a motion made by Councilman DiRe-Day, seconded by Councilwoman Stockard, and
unanimously passed with 6 "Aye" votes by Mayor Pro Tem Jensen and Councilmembers
                                                                            City Council Minutes
                                                                                 August 26, 2004
                                                                                         Page 13

Anagnostou, DiRe-Day, Leber, Stockard and Weber, the City Manager's recommendation
was accepted and approved.

E. Review 2003-2004 Mid-Year Biennial Budget.
Before Assistant City Manager Gregory turned the meeting over to Finance Director Kurt Sacha
for this update on the City’s finances, he advised Council this presentation could easily be set
over for two weeks, at Council’s preference. Due to the lateness of the hour, Council agreed to
set this item over two weeks.

F. Recess Regular Meeting to Workshop Session in Training Room: Lewis & Clark
Bicentennial Commemoration – Lower Columbia Activities.

At 9:10 p.m., Council recessed and reconvened at 9:25 p.m., in the Training Room.

   •   Destination Pacific 2005 Presentation: Jan Mitchell, Chairman, and Cyndi Mudge,
       Executive Director

   •   Council of Governments Presentation: Rosemary Siipola, Senior Transportation Planner

15. MISCELLANEOUS INFORMATION ONLY

       MEETING REMINDERS:
       Regular Council Meeting: 7:00 p.m., Thursday, September 9, 2004
       Regular Council Meeting: 7:00 p.m., Thursday, September 23, 2004
       Workshop: 7:00 p.m., Thursday, September 16, 2004: Utility Rate Review

16. ADJOURNMENT
There being no further business to come before the Council at its regular session, the meeting
was adjourned at 10:14 p.m.

                                                    THE CITY OF LONGVIEW




                                                    Ann Davis, Deputy City Clerk



APPROVED:
                          Mayor
                         AGENDA SUMMARY SHEET
                               Business of the City Council
                              City of Longview, Washington



SUBJECT TITLE:                                        Agenda Item:                 08A
Local Law Enforcement Block Grant
(LLEBG)                                               Dept. of Origin:            Police

                                                      For Agenda of:       September 9, 2004
EXHIBITS: None
                                                      Clearances:
                                                      Originator:            Chief Alex Perez
COUNCIL GOAL ADDRESSED:
                                                      City Atty Review Necessary?             No

PRESENTED BY:                                         Date/Initials of City Attorney:
Edwin R. Ivey, City Manager
                                                      Asst. City Manager:


SUMMARY STATEMENT:
The Police Department applied for and received a Local Law Enforcement Block Grant (LLEBG). The
grant award amount is $11,956 with a cash match in the amount of $1,328. The Local Law Enforcement
Block Grant will fund a portion of the school officer program. The estimated cost of the school officer
program for 2005 is $190,000. One of the requirements of drawing down the grant funds is to hold a
public hearing.

The school officer program is funded through a combination of grants and general fund monies from the
Longview School District and Longview Police Department. The cost to operate the school officer program
is funded by 2 grants and the remaining costs are split between the Longview Police Department and
Longview School District. The breakdown of that funding is as follows:

Community Trade & Economic Development Grant                 13.20%
Local Law Enforcement Block Grant                             6.30%
Longview School District                                     40.25%
Longview Police Department                                   40.25%
                                          TOTAL:            100.00%

A portion of Longview Police Department’s share of the program goes towards the cash match.




RECOMMENDED ACTION:
No motion required.
                              AGENDA SUMMARY SHEET
                                     Business of the City Council
                                    City of Longview, Washington


SUBJECT TITLE:
Ordinance No. 2902 – Authorizing the Issuance and          Agenda Item:                   10A
Sale of $1,970,000 Principal Amount of Water and
Sewer Revenue Refunding Bonds, 2004.                       Dept. of Origin:             Finance

EXHIBITS:                                                  For Agenda of:                9/9/04
Ordinance No. 2902
Preliminary Official Statement                             Clearances:
Water and Sewer Revenue Refunding Bonds, 2004              Originator:        Kurt Sacha, Finance Director
    dated August 31, 2004
                                                           City Atty Review Necessary?             Yes
COUNCIL GOAL ADDRESSED:
                                                           Date/Initials of City Attorney:
PRESENTED BY:
Edwin R. Ivey, City Manager                                Asst. City Manager:           Bob Gregory




SUMMARY STATEMENT:
Ordinance No. 2902 provides for the issuance and sale of $1,970,000 principal amount of water and sewer
revenue refunding bonds to refund certain outstanding water and sewer revenue bonds of the City. The purpose
of this refunding is to take advantage of some of the lowest interest rates that the public bond market has
witnessed in the last 25 years. Seattle Northwest Securities, the City’s bond underwriter has provided an
estimated true interest cost of 3.262% for these refunding bonds. The existing average coupon rate is 5.66%. At
these rates Seattle Northwest Securities has calculated the City of Longview Water/Sewer Fund will realize an
estimated net present value savings of $97,106.




Expenditure                          Amount                           Appropriation
Required:                            Budgeted                         Required


RECOMMENDED ACTION:
Motion to approve the Preliminary Official Statement for the 2004 Water and Sewer Revenue Refunding
Bonds, and adopt Ordinance No. 2902.
                                                                                                                                                                                        PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 31, 2004


                                                                                                                                                                                                           $1,970,000*
                                                                                                                                                                                                 City of Longview, Washington
                                                                                                                                                                                        Water and Sewer Revenue Refunding Bonds, 2004
This is a Preliminary Official Statement, subject to correction and change. The City has authorized the distribution of the Preliminary Official Statement to
    prospective purchasers and others. Upon the sale of the Bonds, the City will complete and deliver an Official Statement substantially in this form.




                                                                                                                                                                DATED: September 15, 2004                                                                      DUE: December 1, as shown below

                                                                                                                                                                MOODY’S RATING—Applied for (see “Rating” herein).
                                                                                                                                                                BANK QUALIFIED—The City has designated the Bonds as “qualified tax-exempt obligations” for banks, thrift
                                                                                                                                                                      institutions and other financial institutions. See “Tax Exemption” herein for a discussion of this designation.
                                                                                                                                                                BOOK-ENTRY ONLY—The Bonds will be issued as fully registered bonds in denominations of $5,000, or integral multiples
                                                                                                                                                                      thereof, and will be registered in the name of Cede & Co., as bond owner and nominee for The Depository Trust
                                                                                                                                                                      Company (“DTC”). DTC will act as securities depository for the Bonds. Purchasers will not receive certificates
                                                                                                                                                                      representing their interest in the Bonds purchased.
                                                                                                                                                                PRINCIPAL    AND INTEREST PAYMENTS—Interest on the Bonds will be payable on December 1, 2004 and semiannually
                                                                                                                                                                      thereafter on June 1 and December 1 of each year to their maturity or earlier redemption of the Bonds. Principal of and
                                                                                                                                                                      interest on the Bonds will be payable by the fiscal agency of the State of Washington in New York, New York,
                                                                                                                                                                      currently The Bank of New York, as further described herein. For so long as the Bonds remain in a “book-entry only”
                                                                                                                                                                      transfer system, the fiscal agent will make such payments only to DTC, which in turn will remit such principal and
                                                                                                                                                                      interest to its Participants for subsequent disbursement to Beneficial Owners of the Bonds as further described herein
                                                                                                                                                                      in Appendix C.
                                                                                                                                                                MATURITY SCHEDULE—
                                                                                                                                                                   Due                      Interest    Prices or                   Due                        Interest     Prices or
                                                                                                                                                                  Dec. 1     Amounts*        Rates       Yields      CUSIP         Dec. 1       Amounts*        Rates        Yields        CUSIP
                                                                                                                                                                  2004       $ 35,000                                              2007         $ 585,000
                                                                                                                                                                  2005        180,000                                              2008           595,000
                                                                                                                                                                  2006        575,000
                                                                                                                                                                                                            (Plus accrued interest from the Dated Date)
                                                                                                                                                                REDEMPTION—The Bonds are not subject to redemption prior to their stated maturities.
                                                                                                                                                                SECURITY—The principal of and interest on the Bonds are payable solely from and secured by the Net Revenue of the
                                                                                                                                                                      System (defined herein). The Bonds are secured by a lien and charge upon Net Revenue equal to the lien thereon of
                                                                                                                                                                      the City’s outstanding Parity Bonds (defined herein), and prior and superior to any other charges whatsoever.
                                                                                                                                                                      Additional bonds may be issued on a parity of lien with the Bonds and the outstanding Parity Bonds, subject to certain
                                                                                                                                                                      conditions described herein. The Bonds are special fund obligations of the City payable only from the Bond Fund.
                                                                                                                                                                      The Bonds are not general obligations of the City, the State of Washington, or any other municipal corporation or
                                                                                                                                                                      political subdivision thereof.
                                                                                                                                                                TAX EXEMPTION-In the opinion of Bond Counsel, interest on the Bonds is excluded from gross income subject to federal income
                                                                                                                                                                      taxation pursuant to the Internal Revenue Code of 1986, as amended, subject to certain conditions and assumptions described
                                                                                                                                                                      herein under “Tax Exemption.” The Bonds are not private activity bonds. Interest on the Bonds is included in the computation of
                                                                                                                                                                      certain federal taxes on corporations.
                                                                                                                                                                DELIVERY—The Bonds are offered by the Underwriter when, as and if issued, subject to the approving legal opinion of
                                                                                                                                                                      Preston Gates & Ellis LLP of Seattle, Washington, Bond Counsel. It is expected that the Bonds will be available for
                                                                                                                                                                      delivery to the Bond Registrar on behalf of DTC by Fast Automated Securities Transfer, on or about September 23
                                                                                                                                                                      2004.
                                                                                                                                                                * Preliminary, subject to change.
                                                                                                                                                                This cover page contains certain information for quick reference only. It is not a summary of the issue. Investors must read the entire
                                                                                                                                                                Official Statement to obtain information essential to the making of an informed investment decision.
                                                        City of Longview
                                                         1525 Broadway
                                                           PO Box 128
                                                      Longview, WA 98632
                                                          (360) 577-3300
                                                     www.ci.longview.wa.us*

                                                           Elected Officials
                                                      Mayor and City Council
                                                                                               Term Expires
                       Mark McCrady, Mayor                                                    January 1, 2006
                       Kurt Anagnostou                                                        January 1, 2008
                       Ron DiRe-Day                                                           January 1, 2006
                       Donald Jensen                                                          January 1, 2008
                       Ramona Leber                                                           January 1, 2008
                       Susan Stockard                                                         January 1, 2008
                       Dennis Weber                                                           January 1, 2006

                                                   Certain Appointed Officials
                       Edwin R. Ivey                                                        City Manager
                       Robert J. Gregory                                          Assistant City Manager
                       Dave C. Spencer                                                      City Attorney
                       Kurt Sacha                                                        Finance Director
                       Jeff Cameron                                                Public Works Director

                                                          Bond Counsel
                                                     Preston Gates & Ellis LLP
                                                        Seattle, Washington
                                                           206-623-7580

                                                         Financial Advisor
                                                      Yeasting and Associates
                                                        Seattle, Washington
                                                            206-467-9884

                                                          Bond Registrar
                                                       The Bank of New York
                                                       New York, New York
                                                          1-800-438-5473

* The City’s website is not part of this Official Statement, and investors should not rely on information presented in the
  City’s website in determining whether to purchase the Bonds. This inactive textual reference to the City’s website is not
  a hyperlink and does not incorporate the City’s website by reference.
This Official Statement does not constitute an offer to sell the Bonds in any jurisdiction in which or to a person to whom it is unlawful
to make such an offer. No dealer, salesperson or other person has been authorized by the City or the Underwriter to give any
information or to make any representations, other than those contained herein, in connection with the offering of the Bonds and, if given
or made, such information or representations must not be relied upon. The City makes no representation regarding the accuracy or
completeness of the information provided in Appendix B—Book Entry Transfer System, which has been furnished by DTC. Estimates
and opinions are included and should not be interpreted as statements of fact. Summaries of documents do not purport to be complete
statements of the provisions. The information and expressions of opinion herein are subject to change without notice, and neither the
delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create an implication that there has
been no change in the affairs of the City since the date hereof.
The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the
information in this Official Statement in accordance with, and as part of, its responsibility to investors under the federal securities laws
as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of
such information.
The City will “deem final” this Preliminary Official Statement, pursuant to Rule 15c2-12 promulgated by the Securities and Exchange
Commission under the Securities Exchange Act of 1934, as amended, except for information which is permitted to be excluded from this
Preliminary Official Statement under said Rule 15c2-12 in the ordinance that authorizes the issuance of the Bonds.
In connection with this offering, the Underwriter may over-allot or effect transactions that stabilize or maintain the market price of the
Bonds at levels above those which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at
any time.


                                                                    ii
                                                                          Table of Contents
                                                                                                                                                                                 Page
Description of the Bonds ....................................................................................................................................................1
    Principal Amount, Date, Interest Rates and Maturities..........................................................................................1
    No Optional Redemption............................................................................................................................................1
    Purchase.........................................................................................................................................................................1
    Bond Registrar and Registration Features ................................................................................................................1
    Book-Entry Bonds.........................................................................................................................................................2
    Authorization for Issuance..........................................................................................................................................2
Purpose and Use of Proceeds.............................................................................................................................................2
    Purpose ..........................................................................................................................................................................2
    Refunding Procedure...................................................................................................................................................2
    Verification of Mathematical Calculations ...............................................................................................................3
    Sources and Uses of Funds .........................................................................................................................................3
Security for the Bonds.........................................................................................................................................................3
    The Bond Fund .............................................................................................................................................................4
    Rate Stabilization Account ..........................................................................................................................................5
    Flow of Funds ...............................................................................................................................................................6
    Rate Covenant...............................................................................................................................................................6
    Certain Other Covenants.............................................................................................................................................6
    Future Parity Bonds .....................................................................................................................................................7
    Junior Lien Obligations ...............................................................................................................................................8
    Supplements and Amendments to the Ordinance ..................................................................................................8
    Refunding or Defeasance of the Bonds .....................................................................................................................9
City Indebtedness ................................................................................................................................................................9
    Prior Lien Obligations .................................................................................................................................................9
    Parity Bonds ..................................................................................................................................................................9
    Subordinate Lien Debt...............................................................................................................................................10
Water and Sewer Revenue Bonds – Debt Service Requirements................................................................................10
    Debt Payment Record ................................................................................................................................................10
    Future Financings.......................................................................................................................................................10
The Water System..............................................................................................................................................................10
    General.........................................................................................................................................................................10
    Water Distribution System........................................................................................................................................11
    Water Storage and Pumping.....................................................................................................................................11
    Water Customers........................................................................................................................................................12
    Water System Capital Improvement Plan ..............................................................................................................13
    The Regional Water Treatment Plan Participants Agreement.............................................................................13
    Water Wheeling Agreements....................................................................................................................................13
    The Mutual and Emergency Aid Agreements .......................................................................................................14
Sewer System .....................................................................................................................................................................14
    General.........................................................................................................................................................................14
    Age and Condition of Plant and Mains...................................................................................................................14
    Sewer Customers........................................................................................................................................................15
    Sewer System Capital Improvement Plan ..............................................................................................................16
    Endangered Species Act ............................................................................................................................................16
Water and Sewer Rate Schedules ....................................................................................................................................16
Statement of Net Assets/Comparative Balance Sheet .................................................................................................22
    Projected Financial Information ...............................................................................................................................24
The City...............................................................................................................................................................................26
    Labor Relations ...........................................................................................................................................................27
    Pension System ...........................................................................................................................................................27
    Accounting Practices..................................................................................................................................................27
    Budgetary Policies......................................................................................................................................................28
    Investment Practices ..................................................................................................................................................28
    Risk Management.......................................................................................................................................................28
    Auditing of City Finances .........................................................................................................................................29
Demographic Information................................................................................................................................................30
    Population ...................................................................................................................................................................30
    Economic Developments...........................................................................................................................................30
Tax Exemption ...................................................................................................................................................................34
    General.........................................................................................................................................................................34
    Continuing Requirements .........................................................................................................................................34
    Certain Federal Income Tax Consequences............................................................................................................34
    Premium Bonds ..........................................................................................................................................................35
    Original Issue Discount .............................................................................................................................................35


                                                                                           iii
                                                              Table of Contents (Continued)
                                                                                                                                                                                   Page
Rating ..................................................................................................................................................................................35
Continuing Disclosure ......................................................................................................................................................35
Legal and Underwriting ...................................................................................................................................................37
    Approval of Counsel..................................................................................................................................................37
    Litigation .....................................................................................................................................................................37
    Official Statement .......................................................................................................................................................37
    Financial Advisor .......................................................................................................................................................37
    Underwriting ..............................................................................................................................................................37
    Concluding Statement ...............................................................................................................................................37
Bond Ordinance............................................................................................................................................... Appendix A
Opinion of Bond Counsel................................................................................................................................Appendix B
Book-Entry Transfer System .......................................................................................................................... Appendix C
Audited Financial Statements........................................................................................................................ Appendix D




                                                                                            iv
                                      OFFICIAL STATEMENT
                                    City of Longview, Washington
                                         $1,970,000*
                        Water and Sewer Revenue Refunding Bonds, 2004

The City of Longview, Washington (the “City”), a municipal corporation duly organized and existing under
and by virtue of the laws of the State of Washington (the “State”) furnishes this Official Statement in
connection with the offering of $1,970,000* aggregate principal amount of Water and Sewer Revenue
Refunding Bonds, 2004, dated September 15, 2004 (the “Bonds”). This Official Statement provides information
concerning the City, the Bonds and the City’s water supply and distribution system and sewage collection and
disposal system (together, the “System”). The Bonds are secured by a lien on Net Revenue of the System on a
parity with the lien thereon of the City’s outstanding Water and Sewer Revenue Bonds, 1994, dated April 1,
1994 (the “1994 Bonds”); Water and Sewer Revenue Bonds, 1997, dated July 1, 1997 (the “1997 Bonds”); and
Water and Sewer Revenue Refunding Bonds, 2002, dated September 1, 2002 (the “2002 Bonds”). Additional
bonds may be issued on a parity of lien with the City’s outstanding 1994 Bonds, 1997 Bonds, 2002 Bonds and
the Bonds (collectively, the “Parity Bonds”), subject to certain conditions described herein.

Certain capitalized words and phrases used in this Official Statement have the meanings as defined in the
Bond Ordinance (attached herein as Appendix A), unless the context clearly indicates that another meaning is
intended.


                                        Description of the Bonds
Principal Amount, Date, Interest Rates and Maturities
The Bonds will be issued in the aggregate principal amount of $1,970,000* and will be dated and bear interest
from September 15, 2004. The Bonds will mature on the dates and in the principal amounts and will bear
interest (payable semiannually on June 1 and December 1, beginning on December 1, 2004) at the respective
rates as set forth on the front cover of this Official Statement. Interest on the Bonds will be computed on the
basis of a 360-day year consisting of twelve 30-day months.

No Optional Redemption
The Bonds are not subject to redemption prior to their scheduled maturities.

Purchase
The City has reserved the right in the Bond Ordinance to use at any time any surplus Revenue of the System
available after providing for the payment of Cost of Maintenance and Operation of the System, debt service on
Parity Bonds, funding of the Reserve Account, and payment of debt service on any revenue obligations of the
City having a junior lien upon the Revenue of the System and the money in the Operating Fund, to purchase
any of the Bonds offered to the City (for retirement only) at any price deemed reasonable by the City.

Bond Registrar and Registration Features
The Bonds will be issued as fully registered bonds and, when issued, will be registered in the name of Cede &
Co. as Bond Owner and as nominee for The Depository Trust Company (“DTC”), New York, New York. DTC
will act as securities depository for the Bonds. Individual purchases and sales of the Bonds may be made in
book-entry form only in minimum denominations of $5,000 within a single maturity and integral multiples
thereof. Purchasers (“Beneficial Owners”) will not receive certificates representing their interest in the Bonds.

Principal of and interest on the Bonds will be payable by the State fiscal agent in New York, New York,
currently The Bank of New York (the “Bond Registrar”). So long as Cede & Co. is the registered owner of the

* Preliminary, subject to change.
                                                       1
Bonds, principal of and interest on the Bonds are payable by wire transfer by the Bond Registrar to DTC,
which, in turn, is obligated to remit such principal and interest to its participants for subsequent disbursement
to the Beneficial Owners of the Bonds, as further described herein in Appendix C.

Book-Entry Bonds
DTC will act as securities depository for the Bonds. The ownership of one fully registered Bond for each
maturity of the Bonds, as set forth on the cover of this Official Statement, each in the aggregate principal
amount of such maturity, will be registered in the name of Cede & Co., as nominee for DTC. See Appendix C
attached hereto for additional information.

Procedure in the Event of Revisions of Book-Entry Transfer System. If DTC resigns as the securities depository and
the City is unable to retain a qualified successor to DTC, or the City has determined that it is in the best interest
of the City not to continue the book-entry system of transfer or that interests of the Beneficial Owners of the
Bonds might be adversely affected if the book-entry system of transfer is continued, the City will execute,
authenticate and deliver at no cost to the Beneficial Owners of the Bonds or their nominees, Bonds in fully
registered form, in the denomination of $5,000 or any integral multiple thereof within a maturity. In the event
the Bonds are transferred by the City to fully registered form, the payments of principal and interest on the
Bonds will be made by the Bond Registrar. Principal of the Bonds will be payable upon due presentment and
surrender thereof at the office designated by the Bond Registrar. Under the State’s current fiscal agency
agreement, the Bonds also may be presented for payment in the State of Washington at any office of Wells
Fargo Bank, National Association. Interest on the Bonds will be payable by check or draft mailed to the
owners of the Bonds at the address appearing on the Bond Register on the 15th day of the month preceding an
interest payment date, and the Bonds will be transferable as provided in the Bond Ordinance (defined below).

Authorization for Issuance
The Bonds are issued pursuant to Bond Ordinance No. ____ (the “Ordinance”) to be adopted by the City
Council (the “Council”) on September 9, 2004, under and in accordance with the laws and provisions of the
State. The Bonds are being issued on a parity of lien with the City’s outstanding 1994 Bonds, 1997 Bonds and
2002 Bonds (see “City Indebtedness” herein) pursuant to the requirements of the City’s Ordinance No. 2546,
passed on March 24, 1994; Ordinance No. 2665, passed on July 10, 1997; and Ordinance No. 2837, passed on
August 22, 2002 (the “Outstanding Parity Bond Ordinances”). The Bonds are being issued to refund a portion
of the 1994 Bonds (see “Purpose and Use of Proceeds” herein).


                                       Purpose and Use of Proceeds
Purpose
The Bonds are being issued to provide the System with reduced annual debt service requirements.

Refunding Procedure
The proceeds from the sale of the Bonds will be used to refund $1,875,000* of the City’s Water and Sewer
Revenue Bonds, 1994, dated April 1, 1994, maturing on December 1 in years 2005 and 2006 and the Term Bond
maturing on December 1, 2008 (the “Refunded Bonds”). The proceeds of the Bonds allocated to the refunding
of the Refunded Bonds will be escrowed to the call date of December 1, 2004 at which time they will be called
at a price of par plus accrued interest to the date of redemption.

From a portion of the proceeds of the Bonds, the City will purchase certain direct non-callable United States
government obligations, including obligations of the State and Local Government Series (“Government
Obligations”). These Government Obligations will be deposited in the custody of U.S. Bank National
Association (“Escrow Agent”). The maturing principal of the Government Obligations, interest earned
thereon, and necessary cash balance, if any, will provide payment of:
   (a)   Interest on the Refunded Bonds due December 1, 2004; and
   (b)   On December 1, 2004, the redemption price (par) of the Refunded Bonds.

* Preliminary, subject to change.
                                                         2
The Government Obligations, interest earned thereon, and necessary cash balance, if any, will irrevocably be
pledged to and held in trust for the benefit of the owners of the Refunded Bonds by the Escrow Agent,
pursuant to an escrow deposit agreement to be executed by the City and the Escrow Agent.

Information on the Refunded Bonds is as follows:
                                                                               Redemption/
                             Refunded        Amount              Amount          Payment
Refunded Bonds               Maturities     Outstanding       Refunded/Paid        Date           Premium
Revenue 1994                 2005-2008       $1,975,000         $1,875,000      12/01/04             $0

                                               Refunded Bonds

                  Maturity Years             Principal            Interest             CUSIP
                  (December 1)               Amounts               Rates              Numbers
                      2005                   $ 150,000              5.30%            543315EY7
                      2006                      550,000             5.40             543315EZ4
                      2008*                   1,175,000             5.75             543315FB6
* Term Bond.

Verification of Mathematical Calculations
Seattle-Northwest Securities Corporation, Seattle, Washington, will verify the accuracy of the mathematical
computations concerning the adequacy of the maturing principal amounts of and interest earned on the
government obligations, to be placed together with other escrowed moneys in the escrow account to pay when
due, pursuant to stated maturity or call for redemption, as the case may be, the principal of, premium, if any,
and interest on the Refunded Bonds.

Sources and Uses of Funds
The proceeds of the Bonds (less accrued interest) are expected to be applied as follows:
      Sources of Funds
      Par Amount of Bonds*                                                           $     1,970,000
      Bond Fund and Other Contributions
      Plus/Less: Original Issue Premium/Discount
      Total Sources of Funds                                                         $

      Uses of Funds
      Escrow Requirements                                                            $
      Issuance Expenses, Underwriter’s Discount, and Bond Insurance
      Total Uses of Funds                                                            $


                                          Security for the Bonds
The Bonds are payable from the Revenue of the System, subject only to the payment of the Costs of
Maintenance and Operation (the “Net Revenue”). Revenue of the System includes all earnings, revenue and
money, except Assessments, received by the City from or on account of the operation of the System, including
income from investments of money in the Operating Fund and Bond Fund or from any other investment of
such earnings and revenue except the income from investments irrevocably pledged to the payment of revenue
bonds pursuant to a plan of refunding or retirement.



* Preliminary, subject to change.

                                                          3
The Bonds are issued on a parity of lien basis with the outstanding Parity Bonds. The City has reserved the
right to issue additional bonds on a parity of lien with the Parity Bonds (the “Future Parity Bonds”).

The Bonds are a special limited obligation of the City payable only from the Longview Water and Sewer
Revenue Bond Fund (the “Bond Fund”) created by Ordinance No. 1877 of the City. The Bond Fund will at all
times be completely segregated and set apart from all other funds and accounts of the City for the security and
the payment of the principal of and interest on the Parity Bonds, as they become due. The Bond Fund has been
divided into two subaccounts: the Debt Service Account and the Reserve Account (see “Bond Fund” herein).

The Bonds are not general obligations of the City, the State or any political subdivision thereof.

The Bond Fund
The Bond Fund has been created and will be drawn upon for the sole purpose of paying and securing the
payment of Parity Bonds. The City will deposit the Assessments, including any interest or penalties due
thereon, into the Bond Fund for payment of the principal of and interest on Parity Bonds without allocation to
any particular series of bonds payable from the Bond Fund.

Payments into Debt Service Account. A Debt Service Account has been created in the Bond Fund for the purpose
of paying the principal of, premium if any, and interest on Parity Bonds. All accrued interest received by the
City at the time of delivery of the Bonds will be paid into the Debt Service Account.

As long as any of the Bonds remaining outstanding, the City has irrevocably obligated and bound itself to set
aside and pay from the Longview Water and Sewer Current Operating Fund (the “Operating Fund”; see “Flow
of Funds” herein) into the Debt Service Account those amounts necessary, together with Assessments and such
other funds as are on hand and available in the Debt Service Account, to pay the principal of and interest on
the Bonds as the same respectively become due and payable. Such payments from the Operating Fund will be
made on or before the 20th day of each month as follows:

(1)   Beginning with the month of October 2004, an amount equal to at least one-third of the interest due on
      December 1, 2004; and beginning with the month of December 2004, and continuing as long as any of the
      Bonds are outstanding and unpaid, an amount equal to at least one-sixth of the interest to become due
      and payable on the next interest payment date on all of the Bonds then outstanding.

(2)   Beginning with the month of October 2004, an amount equal to at least one-third of the principal due on
      December 1, 2004; and beginning with the month of December 2005, and continuing as long as any of the
      Bonds are outstanding and unpaid, an amount equal to at least one-twelfth of the principal of the Bonds
      to become due and payable on the next principal payment date.

Amounts pledged to be paid into the Debt Service Account with respect to the Bonds and the amounts pledged
to be paid into the Reserve Account with respect to the Bonds are a prior lien and charge upon the Revenue of
the System equal in rank to the lien and charge to pay and secure the payment of the Parity Bonds and any
Future Parity Bonds and superior to all other charges of any kind or nature, except the Cost of Maintenance
and Operation of the System.

Once the 1994 Bonds and 1997 Bonds are no longer outstanding, monthly deposits will no longer be required
and the City will deposit amounts needed to pay principal and interest on or prior to a payment date.

Reserve Account. A Reserve Account has been created in the Bond Fund for the purpose of securing the
payment of the principal of and interest on all Parity Bonds payable out of such Fund. The City has
covenanted and agreed that on the date of issuance, it will have on deposit an amount at least equal to the
average annual amount required thereafter to pay the principal of and interest on all outstanding Parity
Bonds. As of July 31, 2004, the balance in the Reserve Account was $1,164,703.51.

The City has further covenanted and agreed that in the event it issues any Future Parity Bonds, it will provide
in each ordinance authorizing the issuance that approximately equal monthly payments will be made into the
Reserve Account out of the Operating Fund so that within five years or less from the date of the issuance of
                                                        4
such Parity Bonds the total amount of such payments, with the amount already in the Reserve Account, will be
at least equal to the average annual amount required to pay the principal of and interest on all Parity Bonds
then outstanding.

The City has further covenanted and agreed that when said required deposits have been made into the Reserve
Account, it will at all times maintain therein an amount at least equal to such average annual amount.
Whenever there is a sufficient amount in the Debt Service Account and Reserve Account to pay the principal
of, premium, if any, and interest on all Parity Bonds then outstanding, the money in the Reserve Account may
be used to pay such principal, premium, if any, and interest. Money in the Reserve Account may be
withdrawn to redeem and retire, and to pay the interest due to such date of redemption and premium, if any,
on the outstanding Parity Bonds so long as the money remaining on deposit in the Reserve Account is at least
equal to the average annual amount required thereafter to pay the principal of and interest on all of the Parity
Bonds then outstanding.

In the event there is a deficiency in the Debt Service Account to meet maturing installments of either interest
on or principal of and interest on any Parity Bonds, such deficiency will be made up from the Reserve Account
by the withdrawal of money therefrom. Any deficiency created in the Reserve Account by reason of any such
withdrawal will be made up within 12 months of the deficiency out of Assessments and Revenue of the System
after making necessary provision for the payments required to be made by the first, second, third and fourth
Priority of Payments from Revenue of the System (see “Flow of Funds” herein for a description of the priority
of payments).

Once the 1994 Bonds are no longer outstanding, the City may substitute or deposit Qualified Insurance or a
Qualified Letter of Credit for amounts required to be deposited into the Reserve Account. Such Qualified
Letter of Credit or Qualified Insurance will not be cancelable on less than five years’ notice. In the event of any
cancellation, the Reserve Account will be funded as if the Parity Bonds that remain outstanding had been
issued on the date of such notice of cancellation.

In the event there is a deficiency in the Debt Service Account to meet maturing installments of either interest
on or principal of and interest on the outstanding Parity Bonds payable out of such Account, such deficiency
will be made up from the Reserve Account by the withdrawal of money therefrom and by the sale or
redemption of obligations held in the Reserve Account, if necessary, in such amounts as will provide cash in
the Reserve Account sufficient to make up any such deficiency, and if a deficiency still exists immediately
prior to an interest payment date and after the withdrawal of cash, the City will then draw from any Qualified
Letter of Credit or Qualified Insurance to make up the deficiency. Such draw will be made at such times and
under such conditions as the agreement for such Qualified Letter of Credit or such Qualified Insurance will
provide. If more than one Qualified Letter of Credit or Qualified Insurance is available, draws will be made
ratably to make up the deficiency.

Application and Investment of Money in Bond Fund. Money in the Bond Fund not needed to pay the interest or
principal and interest next coming due on any outstanding Parity Bonds or to maintain required reserves
therefor may be used to redeem and retire such bonds. Money in the Debt Service and Reserve Accounts may
be invested as permitted by law. Investments in the Debt Service Account must mature prior to the date on
which such money will be needed for required interest or principal payments. Investments in the Reserve
Account will mature not later than the last maturity of any then outstanding Parity Bonds. All interest earned
and income derived by virtue of such investments will remain in the Bond Fund and be used to meet the
required deposits into any account therein.

Rate Stabilization Account
The Rate Stabilization Account may be created within the Operating Fund, at the discretion of the Finance
Director, to cope with future increases in revenue requirements of the System. The City may appropriate or
budget amounts in the Operating Fund for deposit in the Rate Stabilization Account and may withdraw
amounts from the Rate Stabilization Account to prevent or mitigate rate increases or for other lawful purposes
of the City related to the System. Once the 1994 Bonds, 1997 Bonds and 2002 Bonds are no longer outstanding,
amounts withdrawn from the Rate Stabilization Account will increase Revenue of the System for the period for
which they are withdrawn, and amounts deposited in the Rate Stabilization Account will reduce Revenue of
                                                        5
the System for the period for which they are deposited. Credits to or from the Rate Stabilization Account that
occur within 90 days after the end of a fiscal year may be treated as occurring within such fiscal year. Earnings
on the Rate Stabilization Account shall be credited to the Operating Fund.

Flow of Funds
The Revenue of the System, except income from the investment of money in the Bond Fund, will be deposited
in the Operating Fund. The Operating Fund is held and managed by the City and will be used only for the
following purposes and in the following order of priority:

First, to pay the Cost of Maintenance and Operation of the System;

Second, to make all payments required to be made into the Debt Service Account to pay the interest on any
Parity Bonds;

Third, to make all payments required to be made into the Debt Service Account to pay the principal of any
Parity Bonds;

Fourth, to make all payments required to be made into any sinking fund or bond retirement account created for
the payment of the principal of Term Bonds;

Fifth, to make all payments required to be made into the Reserve Account to secure the payment of any
Parity Bonds;

Sixth, to make all payments required to be made into any other revenue bond redemption fund or revenue
warrant or note redemption fund and debt service account or reserve account created to pay and secure the
payment of the principal of and interest on any revenue bonds or revenue warrants or notes of the City having
a lien upon the Revenue of the System and the money in the Operating Fund junior and inferior to the lien
thereon for the payment of the principal of and interest on Parity Bonds; and

Seventh, to retire by redemption or purchase any outstanding revenue obligations of the City or to make
necessary additions, betterments, improvements, extraordinary repairs, extensions and replacements of the
System or any other lawful City purposes.

The City will maintain sufficient money in the Operating Fund to enable the City to continuously meet the
Costs of Maintenance and Operation of the System on a current basis.

Rate Covenant
The City will establish, maintain and collect rates and charges for the use of the services and facilities of the
System and all commodities sold, furnished or supplied by the System, which will be fair and
nondiscriminatory and will adjust such rates and charges from time to time so that the Net Revenue together
with Assessment Income collected in each calendar year will equal at least 1.25 times the average annual
amount required to be paid thereafter for the principal of and interest on all outstanding Parity Bonds.

The Revenue of the System, together with Assessments collected, will at all times be sufficient (a) to pay all
costs of and charges and expenses in connection with the proper operation and maintenance of the System,
(b) to pay the principal of and interest on the outstanding Parity Bonds, as and when the same shall become
due and payable, (c) to make when due all payments which the City is obligated to make into the Reserve
Account and all other payments which the City is obligated to make, and (d) to pay all taxes, assessments or
other governmental charges lawfully imposed on the System or the revenue therefrom or payments in lieu
thereof and any and all other amounts which the City may now and hereafter become obligated to pay from
the Revenue of the System by law or contract.

Certain Other Covenants
The City has covenanted and has agreed with the owner of each of the Bonds for as long as any of the same
remain outstanding as follows:

                                                       6
Collection of Assessments. The City will promptly collect all Assessments levied in any utility local improvement
district now or hereafter created to secure the payment of Parity Bonds without allocation of such Assessments
to any particular series of Parity Bonds. The City will determine by March 1 of each year all Assessments
which have become delinquent during the preceding calendar year and bring the necessary actions of
foreclosure upon the property against which such Assessments were levied by June 1 of such year.

Delinquent Charges. The City will promptly take action to enforce the payment of delinquent service charges by
such means as are legally available.

Maintenance of the System. The City will at all times keep and maintain the System in good repair, working
order and condition and will at all times operate the System and the business in connection therewith in an
efficient manner and at a reasonable cost.

Sale of the System. The City will not sell or otherwise dispose of the System in its entirety unless, simultaneously
with such sale, provision is made for payment into the Bond Fund of an amount sufficient to pay the principal
of and interest on all then outstanding Parity Bonds nor will it sell any part of the useful operating properties
of the System (once the 1994 Bonds and 1997 Bonds are no longer outstanding, in excess of 5% of the value of
the System) unless provision is made for payment into the Bond Fund of an amount which will be in at least
the same proportion to the net amount of Parity Bonds outstanding (defined as the total amount of such Parity
Bonds less the amount of cash and investments in the Bond Fund and accounts therein) that the net revenue
from the portion of the System sold for the preceding fiscal year bears to the Net Revenue of the System for the
same period. Any money so paid into the Bond Fund will be used to retire all or part of any Parity Bonds
outstanding at the earliest possible date.

No Free Service. The City will not furnish any service of the System to any customer whatsoever free of charge.

Insurance of the System. The City will keep the System insured, and will carry out such other insurance, with
responsible insurers, with policies payable to the City, against risks, accidents or casualties, at least to the
extent that insurance is usually carried by private corporations operating like properties, or will implement a
self-insurance program with reserves adequate, in the judgment of the Council, to protect the City and the
owners of the Parity Bonds against loss. In the event of any loss or damage, the City will promptly repair or
replace the damaged portion of the insured property and apply the proceeds of any insurance policy for that
purpose; or in the event the City should determine not to repair or reconstruct such damaged portion of the
properties of the System, the proceeds of such insurance will be paid into the Reserve Account to the extent
that such transfer will be necessary to make up any deficiency therein and the balance, if any, will at the option
of the City be used either for (a) repairs, renewals, replacements, or capital additions to the System, (b) the
redemption of Parity Bonds or (c) for deposit into the Reserve Account.

Books and Accounts. The City will keep and maintain proper books and accounts with respect to the operations,
income and expenditures of the System that are in accordance with proper and legal accounting procedures.

Future Parity Bonds
The City reserves the right to issue Future Parity Bonds for the purposes of financing improvements to the
System or to refund any Parity Bonds or other obligations of the System, so long as: (1) at the time of the
issuance of any Future Parity Bonds there is no deficiency in the Bond Fund or the Reserve Account; (2) if there
are Assessments levied in any utility local improvement district in which additions and improvements to and
extensions of the System will be constructed from the proceeds of such Future Parity Bonds, the ordinance
authorizing such Future Parity Bonds requires that such Assessments be paid into the Bond Fund; (3) if there
are Assessments pledged to be paid into a warrant or bond redemption fund for revenue bonds or warrants
being refunded by Future Parity Bonds, the ordinance authorizing such Future Parity Bonds requires such
Assessments to be paid into the Bond Fund; (4) the principal of and interest on any Future Parity Bonds will be
payable out of the Bond Fund and the requirements for Reserve Account payments are met; (5) prior to the
delivery of any Future Parity Bonds, the City has on file in the office of the City Clerk a certificate of an
independent engineer or certified public accountant showing: (a) that the Net Revenue determined and
adjusted as provided in the Ordinance for each calendar or fiscal year after the issuance of such Future Parity

                                                         7
Bonds (the “Adjusted Net Revenue”) together with Assessment Income will equal at least 1.25 times the
average annual amount required to be paid thereafter for the principal of and interest on all outstanding Parity
Bonds, including the Future Parity Bonds proposed to be issued, but excluding any Term Bond Maturity Year
from the computation of such average, and (b) that Adjusted Net Revenue and Assessment Income remaining
after the payment of the principal of and interest on Parity Bonds other than Term Bonds will be sufficient to
retire (by redemption prior to maturity or when due) and to pay interest until such retirement on all then
outstanding Term Bonds.

Not withstanding the foregoing, the condition stated in subsection (5) need not be met if Future Parity Bonds
are to be issued by the City for the purpose of refunding at or prior to their maturity any part or all of then
outstanding Parity Bonds and the issuance of such refunding Future Parity Bonds will result in debt service
savings and does not require an increase of more than $5,000 in any fiscal or calendar year for principal of and
interest on such refunding Future Parity Bonds over and above the amount required in such year for the
principal of and interest on the bonds being refunded.

The Adjusted Net Revenue will be the Net Revenue for a period of any 12 consecutive months out of the 24
months immediately preceding the date of delivery of such proposed Future Parity Bonds as adjusted by such
engineer or accountant to take into consideration changes in Net Revenue estimated to occur under the
following conditions for each year after such delivery for so long as any Parity Bonds, including the Future
Parity Bonds proposed to be issued, will be outstanding: (1) the additional Net Revenue which would have
been received if any change in rates and charges adopted prior to the date of such certificate and subsequent to
the beginning of such 24-month period, had been in force during the full 24-month period; (2) the additional
Net Revenue which would have been received if any facility of the System which became fully operational
after the beginning of such 24-month period had been so operating for the entire period; (3) the additional Net
Revenue estimated by such engineer or accountant to be received as a result of any additions, betterments and
improvements to and extensions of any facilities of the System which are (a) under construction at the time of
such certificate or (b) will be constructed from the proceeds of the Future Parity Bonds to be issued; and (4) the
additional Net Revenue which would have been received if any customers added to the System during such
24-month period were customers for the entire period.

Such engineer or accountant may rely upon financial statements of the System, certified by the City Finance
Director showing income and expenses for the period. The certificate of such engineer or accountant will be
conclusive and the only evidence required to show compliance with the provisions and requirements as
provided in the Ordinance.

Junior Lien Obligations
The City reserves the right to issue revenue bonds or other obligations which are a charge upon the Revenue of
the System junior or inferior to the payments required by the Ordinance to be made out of such Revenue into
the Bond Fund and accounts therein to pay and secure the payment of any outstanding Parity Bonds.
Furthermore, the City reserves the right to issue revenue bonds to refund maturing Parity Bonds for the
payment of which money is not otherwise available.

Outstanding Junior Lien Obligations. The City has three Public Works Trust Fund Loans totaling $699,049
payable from the System. . Two loans totaling $440,973 accrue interest at one percent per annum and one loan
totaling $258,076 accrues interest at two percent per annum. Principal and interest is paid annual on July 1 of
each year. The final maturity of one loan is 2008. The other loans mature in 2010 and 2012 (see “City
Indebtedness” herein).

Supplements and Amendments to the Ordinance
Amendments to the Ordinance without Bond Owner Approval. The City has reserved the right to adopt a
supplemental ordinance(s) for the following purposes: (1) to add to the covenants and agreements of the City
or to surrender any right or power herein reserved to or conferred upon the City and (2) to make such
provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective
provision contained in the Ordinance. Any such supplemental ordinance of the City may be adopted without
the consent of the owners of any Parity Bonds at any time outstanding.



                                                        8
Amendments to the Ordinance with Bond Owner Approval. With the consent of the registered owners of not less
than 65 percent in aggregate principal amount of the Parity Bonds then outstanding, the Council may adopt a
ordinance or ordinances supplemental to the Ordinance for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of the Ordinance or of any supplemental
ordinance; provided, however, that no such supplemental ordinance will: (i) extend the fixed maturity of any
Parity Bonds, or reduce the rate of interest thereon, or extend the times of payment of interest from their
respective due dates, or reduce the amount of the principal thereof, or reduce any premium payable on the
redemption thereof, without the consent of the registered owner of each bond so affected; or (ii) reduce the
percentage of bond owners required to approve any such supplemental ordinance, without the consent of the
registered owners of all of the Parity Bonds then outstanding.

Refunding or Defeasance of the Bonds
In the event that money and/or “Government Obligations” (as such obligations are now or may hereafter be
defined in chapter 39.53 RCW or its successor statute, if any) 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 all or a portion the Bonds in accordance with their terms are set aside in a special account to effect such
redemption or retirement and such money and/or the principal of and interest on such 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 the interest on the Bonds to be retired, and such Bonds will cease
to be entitled to any lien, benefit or security of the Ordinance except the right to receive the funds so set aside
and pledged, and such Bonds shall be deemed not to be outstanding.


                                              City Indebtedness
The City is authorized by chapters 35.41, 39.46 and 39.53 RCW to issue revenue bonds “…if it deems it advisable
to purchase, lease, condemn, or otherwise acquire, construct, develop, improve, extend or operate any land,
building, facility, or utility and adopts an ordinance which has been ratified by the voters of the city or town in
those instances where it is required to be ratified by the voters…such city or town my issue revenue bonds against
the special fund or funds created solely from revenues…” RCW 35.41.030. The City is authorized to issue
refunding bonds, such as the Bonds, without a vote of the people.

Prior Lien Obligations
The City does not have any outstanding prior lien obligations which are senior to the Bonds.

Parity Bonds
The City’s Outstanding Parity Bonds are composed of the following bond issues:

Water and Sewer                               Date of         Maturity       Amount of          Outstanding
Revenue Bonds (Parity Bonds)                   Issue            Date        Original Issue       at 09/01/04
1994 Revenue                                 04/01/94         12/01/04(1)    $ 2,560,000        $ 1,975,000
   Less: Refunded Bonds                                                                           (1,875,000)
1997 Revenue                                 07/01/97         12/01/12          5,650,000          5,335,000
2002 Revenue Refunding                       09/01/02         12/01/09          3,080,000          2,060,000
2004 Revenue Refunding (this issue)(2)       09/01/04         12/01/08          1,970,000          1,970,000
Total Revenue Bonds Outstanding                                              $ 13,280,000       $ 9,465,000
(1) The Date of Maturity reflects the redemption of the 1994 Bonds. The December 1, 2004 principal payment will remain
    after this refunding.
(2) Preliminary, subject to change; excludes the Refunded Bonds.




                                                          9
Subordinate Lien Debt
The City has three Public Works Trust Fund Loans that are junior lien obligations to the Parity Bonds.
                                                 Date of        Maturity       Amount of         Outstanding
Public Works Trust Fund Loans                     Issue          Date         Original Issue      at 09/01/04(1)
East Longview Sewer Rehab                        07/89           07/08        $ 1,000,000        $ 213,450
East Longview Sewer Rehab                        07/90           07/10              955,109          227,523
Tennant Way Sewer                                07/94           07/12              612,930          258,076
Total PWTF Loans Outstanding                                                  $ 2,568,039        $ 699,049
(1) Estimated amortization schedules.


                         Water and Sewer Revenue Bonds – Debt Service Requirements
                                         (As of September 15, 2004)

    Cal.            Outstanding Parity Bonds (1)                       The Bonds (2)                     Total Debt
   Years            Principal          Interest                 Principal         Interest                Service
   2004         $     1,175,000         $    165,489        $       35,000       $      13,013       $     1,388,502
   2005               1,100,000              288,903               180,000              51,545             1,620,448
   2006                 670,000              250,778               575,000              48,035             1,543,813
   2007                 175,000              220,678               585,000              34,235             1,014,913
   2008                 180,000              215,428               595,000              18,148             1,008,575
   2009               1,185,000              210,028                     0                   0             1,395,028
   2010               1,000,000              154,015                     0                   0             1,154,015
   2011               1,000,000              103,015                     0                   0             1,103,015
   2012               1,010,000               52,015                     0                   0             1,062,015
   Total        $     7,495,000         $   1,660,346       $     1,970,000      $     164,976       $    11,290,322

(1) Excludes the Refunded Bonds.
(2) Preliminary, subject to change. Interest amounts are estimates only, assuming interest rates ranging from 1.45%
    to 3.05%.

Debt Payment Record
The City has promptly met all debt service payments on outstanding obligations. No refunding bonds have
been issued to avoid an impending default.

Future Financings
Other than the Bonds and the Outstanding Parity Bonds, the City does not have current plans to issue any
Future Parity Bonds within the next twelve months.


                                                The Water System
General
Facilities owned and operated by the City are the Longview Regional Water Treatment Plant (in partnership
with the Cowlitz Public Utility District (“PUD”)), booster pump stations, reservoirs and the transmission and
distribution network. The primary source of water supply is the Cowlitz River.

There are several minor streams (Coal Creek, Ostrander Creek and Clark Creek) traversing the area, presently
meeting local needs for stock and irrigation supplies.

The Cowlitz River emerges from glaciers located on the southeast side of Mount Rainier. Due to the changed
condition of the upper Toutle River drainage basin, as a result of the 1980 eruption of Mount St. Helens, heavy
siltation of the Cowlitz River is a continuing and significant problem. Two dams are located on the Cowlitz
                                                           10
River in central Lewis County: the Mayfield Dam and the Mossyrock Dam. Both were constructed by the City
of Tacoma to generate hydroelectric power for itself and for flood control along the downstream areas of the
Cowlitz River. The Mayfield Dam impounds approximately 133,700 acre-feet of water in Mayfield Lake. The
upstream Mossyrock Dam impounds approximately 1,586,300 acre-feet of water in Riffe Lake.

The present Longview Regional Water Treatment Plant, completed in 1981, is an expansion of the original
structure which was built in 1945 with a capacity of four million gallons per day (“mgd”). The addition of two
filters in 1953 and numerous changes in piping and process equipment allowed the plant to keep up with
demand over the years. By 1978, however, the facility had reached its capacity limit and the design for a major
remodeling and expansion was undertaken. On December 18, 1978, the City and the PUD entered into the
Regional Water Treatment Participants’ Agreement (the “Agreement”). See “Regional Water Treatment
Participants Agreement”. The Agreement provided for the joint expansion of the capacity of the treatment
plant with the cost of the capital expansion being shared in a ratio of projected delivery requirements from the
plant. Water delivery under the Agreement began in May 1980. The treatment plant is currently designed to
produce about 17 million gallons (“mg”) per peak day with additional capability for expansion to 24 mg per
peak day.

Water Distribution System
While the City encompasses an area of approximately 13 square miles, its water service area extends out into
contiguous unincorporated areas such as Coal Creek Valley and Willow Grove. To serve this large area, the
City operates a gravity water distribution system with upper and lower pressure zones. Interconnections
between pressure zones, consisting of normally closed valves, permit water supplies from higher zones to flow
into lower zones in the event of emergency.

The distribution system comprises 192.1 miles of lines ranging in size from 24 inches down to four inches, and
composed of cast iron (78 percent), ductile iron, plastic water main, and steel pipe.

Water Storage and Pumping
The City has eight water storage sites with a total capacity of 19.35 million gallons. Water is pumped to the
Hillside and Mt. Solo reservoirs by pumps at the treatment plant. Six booster pump stations provide water to
the storage facilities in the upper pressure zone, as follows:

Hillcrest Pump Station. Located near Hillside reservoir; contains two 30 horsepower (“hp”) pumps with 250
gallons per minute (“gpm”) capacity each which pump water to the Hillcrest reservoir from the main
(Hillside) reservoir system.

Indian Creek Pump Station. Located near the junction of Sunset Way and Indian Hills Drive; contains a 40 hp
pump with 350 gpm capacity and a 30 hp pump with 250 gpm capacity which pump water from the main
(Hillside) reservoir system into the Ammons Drive reservoir.

North 50th Avenue Pump Station. Located on North 50th Avenue; contains two 35 hp pumps with capacity of
approximately 220 gpm which pump water to North 50th Avenue reservoir.

Neimi Road Pump Station. Located on Neimi Road; contains a 25 hp pump with a capacity of approximately 345
gpm at 220 feet of head which pumps water to Neimi Road reservoir.

Trella Acres Pump Station. Located near the junction of Coal Creek Road and Ragland Road; contains two 30 hp
pumps with a capacity of 270 gpm each which pump water from the Coal Creek (Neimi reservoir) system into
the Trella Acres reservoir.

Columbia View Pump Station. Located on Ammons Drive within the Columbia View Addition; contains two 15
hp pumps with a capacity of 100 gpm each which pump water from the Ammons Drive system into the
Columbia View reservoir.




                                                      11
Water to all customers is metered with services ranging in size from 5/8 x 3/4-inch to a single 10-inch meter
and a single 12-inch meter. The water supply is sufficient to meet current average demand and peak demand
requirements of the City. The storage capacity of the water system is 19.35 million gallons per day. Historical
water demand is shown in the following table:

                                         Regional Water Treatment Plant
                                              100 Cubic Feet (CCF)
                                        2003                 2002            2001           2000         1999
          CCF Totals                 2,440,897            2,441,842       2,407,821      2,629,073    2,721,579
          Million gallons/day             5.00                 5.00            4.93           5.39         5.58
Source: City of Longview

Water Customers
The City provides water to approximately 13,618 accounts, 88.5 percent of which are residential. Customer
data by class for the last five years is presented below, as well as current revenues of the water system.

                                              Number of Water Customers
                                              Year                       Total
                                              2003                       13,618
                                              2002                       13,593
                                              2001                       13,538
                                              2000                       13,330
                                              1999                       13,152
Source: City of Longview

                                                       Water Billing
                                   2003                 2002              2001           2000           1999
   Residential                  $ 2,425,070          $ 2,234,763       $ 2,026,446    $ 2,097,777    $ 1,854,980
   Commercial                       757,755              700,930           733,018        818,314        691,980
   Apartment                        574,887              553,114           549,211        542,558        464,192
   Other                            310,734              278,528           336,010        358,134        320,224
   Total                        $ 4,068,446          $ 3,767,335       $ 3,644,685    $ 3,816,783    $ 3,331,376
Source: City of Longview

The following table shows the City’s ten major water customers by amount billed.

                                              Major 2003 Water Accounts
                                                                    Total Amount          Amount of
             Customer                                              Billed for Water      Water Revenues
             Weyerhaeuser                                             $ 95,683                2.35%
             St. John’s Medical                                          62,894               1.55
             Longview School District                                    44,911               1.10
             Cowlitz County Sewer Treatment                              43,993               1.08
             Port of Longview                                            40,717               1.00
             Longview Fibre                                              31,855               0.78
             Oaks Mobile Home Park                                       31,722               0.78
             Cytec                                                       27,979               0.69
             Northwest Hardwoods                                         22,870               0.56
             Longview Country Club                                       21,115               0.52
             Total                                                    $ 423,739              10.41%
Source:   City of Longview

                                                             12
Water System Capital Improvement Plan
The following is a list of projects the City is undertaking as a part of its capital improvement plan for the
Water System. The projects will be funded through rates and the use of water construction and depreciation
reserves:

                                           2004 Water Fund Projects
                                      Project                             Cost of Project
                  Annual main replacements                                 $ 150,000
                  GIS data conversion                                           60,000
                  SCADA modifications                                           50,000
                  TIB/road reconstruction                                       50,000
                  Emergency power                                               50,000
                  Reservoir fencing and security                               160,000
                  Wheeling meter replacement                                    50,000
                  Pump station upgrade - Hillcrest                              30,000
                  Improve distribution system – Ammons/Coal Creek              125,000
                  Additional storage (N. 50th Reservoir)                        91,000
                  2004 Total                                               $ 816,000

                                      Water Fund-Five Year Capital Plan
                            Year                                     Annual Total
                            2004                                     $   816,000
                            2005                                         628,000
                            2006                                         750,950
                            2007                                         925,700
                            2008                                         815,500
                            Five-year total                          $ 3,936,150
Source: City of Longview

The Regional Water Treatment Plan Participants Agreement
The Agreement was entered into by the City and the PUD in December 1978. The Agreement formed a
partnership between the City and the PUD for the construction and subsequent operation of the Longview
Regional Water Treatment Plant. The Agreement provides for the establishment of a Water Operating Board
and details the rights and responsibilities of the two participants. The City and the PUD’s respective shares are
87 and 13 percent. Costs of maintenance and operation are covered by a common rate charged to both
participants based on metered delivery from the plant. Water delivery under the Agreement began on May 15,
1980. Construction under the expansion and modernization program was completed in 1981.

Water Wheeling Agreements
Water supply arrangements between the City, the City of Kelso (“Kelso”) and the PUD rely on a common
commitment among the purveyors to provide reciprocal water wheeling services. The underlying objective in
the formation of the wheeling agreements is to provide for the most efficient means of transmitting water from
the source of supply to the various segmented portions of the local distribution systems. Fulfillment of the
water wheeling arrangements enables the purveyors to avoid costly duplication of facilities while using their
selected and most economical source of water supply.

A reciprocal water wheeling agreement was subsequently signed between Kelso and the PUD in 1978. The
agreement provided that Kelso would wheel water for the PUD to Haussler Road, Cowlitz Gardens and
Williams-Finney; and the PUD would wheel water for Kelso to serve Aldercrest No. 3. An amendment to that
agreement was signed in August 1978, providing for wheeling service by the PUD for Kelso to deliver water to
a portion of the Davis Terrace area.


                                                       13
The City and the PUD executed a wheeling agreement in 1980 to become effective as of the date of
commencement of delivery of water from the Longview Regional Water Treatment Plant (May 15, 1980). This
agreement provides for wheeling service by the City for the PUD between the treatment plant and
Hillside Reservoir.

The Mutual and Emergency Aid Agreements
The jurisdiction of the cities of Kelso, Longview, Castle Rock, and Woodland and Cowlitz PUD, the Carrols
Water Association and the Cloverdale Water Users’ Association have been covered by a Water Utilities’
Mutual Assistance Plan since 1971. The plan contains sections dealing with the exchange of assistance,
emergency aid, equipment charges, labor charges, and equipment damage or loss.

An emergency aid agreement also exists between the City and the Weyerhaeuser Company whereby
Weyerhaeuser has agreed to provide the City with up to 2.2 cubic feet per second of water during emergencies.
The agreement has been of significant value to Longview when periods of high turbidity in the Cowlitz River
have forced the shutdown of the regional treatment plan or reduced its output.


                                              Sewer System
General
The sanitary sewer collection system is comprised of approximately 157.2 miles of sewer line ranging in size
from six inches to 36 inches in diameter and 44 lift stations. The City operates and maintains the West
Longview Lagoon system which treats sewage west of 30th Avenue; this is known as the West Longview
System. The rest of Longview, known as the East Longview System, is served by the Regional Treatment Plant
and is managed by the Cowlitz Sewer Operating Board, of which the City is a voting member.

Both the East and West Longview sewer systems experience summertime flows well within design capacities.
During wintertime weather, infiltration and inflow increase. This has accelerated the aggressive rehabilitation
program being undertaken within both systems. Both systems operate within current regulations.

The wastewater treatment plant capacity and demand are presented below.

                                  2003 Wastewater Treatment Plant Flows
                                                     West                      East
                                                    System                   System
                  Plant Capacity (MGD)                2.7                      26.0
                  Total Flows (000s)                18,700                  1,307,349
                  Average Flows (MGD)                 1.56                      3.58
Source: City of Longview

Age and Condition of Plant and Mains
West Longview. Generally speaking, the West Longview Collection System is approximately 42 years old.
Those areas that were constructed prior to 1962 were sealed or completely replaced within the last 12 years.
The West Longview Lagoon was also expanded and updated to current standards. The Lagoon facility
provides secondary treatment in accordance with State and federal requirements. The design capacity of the
West Longview Lagoon System is currently 2.7 mgd.

In 2001, the City applied to renew its National Pollutant Discharge Elimination System (NPDES) discharge
permit for the Lagoon facility. During the public review period for the renewed permit, comments were
received challenging the Washington Department of Ecology’s (DOE) ability to renew the permit without
requiring increased treatment and reduced effluent limitations.

The DOE has not yet determined how to respond to the comments nor what changes they would make to the
NPDES permit, and have not yet determined when they will make those decisions. It is likely the DOE will
impose more stringent discharge limitations on the Lagoon facility and establish a compliance schedule to
                                                      14
meet those limitations. The City will then need to determine whether or not to upgrade the Lagoon treatment
plant by constructing new facilities or to construct pumping and piping facilities to divert all of the flow to the
Cowlitz Sewer Operating Board (CSOB) regional treatment plant and abandon the Lagoon treatment plant.
Anticipating the eventuality of either option, the City is including evaluation, design and construction costs in
its capital improvement plan.

East Longview. The East Longview Collection System is comprised of both old and new sewer lines. The City
has completed a $3 million project in East Longview and is continuing to replace old and leaking sewer mains
in this section of the City.

Sewer Customers
The City provides sewer service to approximately 12,949 accounts, 90.2 percent of which are residential.
Customer data by class for the last five years is presented below, as well as current revenues of the sewer
system.

                                         Number of Sewer Customers
                                            Year                       Total
                                            2003                       12,949
                                            2002                       12,889
                                            2001                       13,975
                                            2000                       13,761
                                            1999                       13,577
Source: City of Longview


                                                     Sewer Billing
                                 2003                 2002              2001           2000          1999
   Residential                $ 3,842,410          $ 3,638,396       $ 3,607,452    $ 3,494,285   $ 2,587,258
   Commercial                     890,559              846,593           893,545        908,669       657,121
   Apartment                    1,099,634            1,042,457         1,019,604        984,826       725,493
   Other                          278,292              240,739           200,301        194,723       157,047
   Total                      $ 6,110,895          $ 5,768,185       $ 5,720,902    $ 5,582,503   $ 4,126,919
Source: City of Longview

The following table shows the City’s five major sewer customers by amount billed.

                                            Major 2003 Sewer Accounts
                                                                  Total Amount           Amount of
             Customer                                            Billed for Sewer      Sewer Revenues
             St. John’s Medical                                     $ 96,623                 1.58%
             Cytec                                                     46,302                0.76
             Oaks Mobile Home Park                                     28,707                0.47
             Monticello Retirement                                     23,023                0.38
             Bridgegate Apartments                                     22,940                0.37
             Canterbury Retirement                                     22,029                0.36
             Monticello Hotel                                          21,182                0.35
             Campus Towers                                             17,259                0.28
             Total                                                  $ 278,065                4.55%
Source:   City of Longview




                                                           15
Sewer System Capital Improvement Plan
The following is a list of projects the City is undertaking as a part of its capital improvement plan for the
Sewer System in 2004. The City anticipates issuing bonds in 2007 to partially fund some of the following
projects:

                                             2004 Sewer Fund Projects
                                     Project                                Cost of Project
                  Annual main replacements                                   $ 450,000
                  W. Longview SDC payments to CSOB                               206,100
                  W. Longview infiltration reduction                             100,000
                  GIS data conversion                                             60,000
                  TIB/road reconstruction                                         50,000
                  Pump station rehab (W. Longview facility study)                200,000
                  Pump station rehab (Pennsylvania)                              200,000
                  Pump station rehab (Selix)                                     200,000
                  SCADA modifications                                            200,000
                  2004 Total                                                 $ 1,666,100

                                        Sewer Fund-Five Year Capital Plan
                           Year                                              Annual Total
                           2004                                              $ 1,666,100
                           2005                                                1,088,750
                           2006                                                2,203,416
                           2007                                                4,566,135
                           2008                                                1,345,000
                           Five-year total                                   $ 10,869,401
Source: City of Longview

Endangered Species Act
In planning projects, the City evaluates the construction and operation of the facilities to determine if there will
be any impact on endangered species through the use of site evaluations, special environmental studies, and
preparation of State Environmental Policy Act (“SEPA”) checklists or environmental impact statements.
Alternatives are developed to minimize or avoid impacts on endangered species. Best management practices
are employed during routine operation and maintenance activities to minimize impacts on the environment.


                                      Water and Sewer Rate Schedules
The City is empowered by and required under State law to fix rates and charges for services provided which
are uniform within the same class of service and adequate to provide revenues sufficient for the payment of
the principal of and interest on its revenue obligations payable therefrom for such purpose and for the proper
operation and maintenance of the System and all necessary repairs and improvements thereto.

The City has maintained rates for water service and sewer service which have been sufficient to provide for all
operating and maintenance costs and expenses, debt service, repairs, replacements and renewals and to
provide for a major portion of the capital additions to the System. Rates and charges of the City are fixed by
Council resolution. See “Security for the Bonds-Rate Covenant” herein for a description of the City’s
covenants regarding the rates of the System.

Rates currently charged for water/sewer utility services are described below.




                                                        16
Water Rates Within City Limits
All water supplied for domestic or commercial purposes within the City limits is supplied on a metered basis
in accordance with the following schedule, but not less than the minimum monthly meter charge:

Monthly Rates: Minimum for first 200 cubic feet or any portion thereof: $8.45
               For the next 800 cubic feet:   $1.25 per 100 cubic feet
               For all over 1,000 cubic feet: $1.27 cents per 100 cubic feet

                                     Minimum Monthly Meter Charge
                              Meter Size                   Charge per Month
                               3/4 inch                        $ 8.45
                               1 inch                            12.87
                               1½ inch                           20.45
                               2 inch                            28.76
                               3 inch                            51.44
                               4 inch                            82.02
                               6 inch                           164.07
                               8 inch                           271.79
                               10 inch                          355.04
                               12 inch                          465.21
Source: City of Longview

The rates for such metered water supplied in any bimonthly period, or fractional part thereof in excess of one
month, are in accordance with the following schedule.

Bi-Monthly Rates: Minimum for first 400 cubic feet or any portion thereof: $16.90
                  For the next 1,600 cubic feet: $1.25 per 100 cubic feet
                  For all over 2,000 cubic feet: $1.27 per 100 cubic feet

All bimonthly minimum charges per meter are double the monthly minimum meter charge.

Water Rates Outside City Limits
All water supplied for domestic or commercial purposes outside the City limits is supplied on a metered basis.
The rates for such metered water supplied in any one month or fractional part thereof are in accordance with
the preceding schedule, plus an additional charge of 65 percent to cover fire protection costs.

Partial Monthly Charges and ULID Charges
Charges for water supplied for less than a calendar month are prorated based on the applicable monthly
minimum charge. Water supplied to Utility Local Improvement Districts (“ULID”) are charged $1.50 per
month per service, in addition to the applicable monthly minimum charge.

Water Minimums for Multiple Living and Commercial Units
Minimum monthly water rates are as follows for multiple residences without separate meters:
      Duplex or two residences               Two times the minimum monthly meter charge
      Triplex or three residences            Minimum monthly meter charge for actual meter size through
      six-plex                               (but not less than 1") plus $2.12 per unit
      Seven units and above                  Minimum monthly meter charge for actual meter size
                                             (but not less than 1½") plus $2.12 per unit
      Commercial – three or more units       Minimum monthly meter charge for actual meter size
                                             plus $2.12 per unit



                                                      17
Water Service Connection Charges
Water service connection charges are pursuant to the Longview Municipal Code, as follows:
1.    Single family residences or business buildings
      A.    For a 3/4-inch water service which does not exceed in length the distance across the dedicated street
            upon which the single residence or business building faces.
            (1) $ 350 – inside the City limits
            (2)      350 – outside the City limits
      B.    For a one-inch water service which does not exceed in length the distance across the dedicated street
            upon which the single residence or business building faces.
            (1) $ 350 – inside the City limits
            (2)      350 – outside the City limits
2.    Any water service requested and not within the above descriptions will be considered a special water
      service and will be installed by the City and the cost thereof will be the actual cost to the City of such
      installation as determined by the Director of Public Works and approved by the City Manager.
3.    In addition to the foregoing charges, a capital recovery fee, which represents the cost to purchase a fair
      share of the capacity available in the existing system, will be charged according to the meter size as
      follows:
                              Connection Size                        Capital Recovery Fee
                                      ¾"                                  $     834
                                       1"                                     2,070
                                     1½"                                      4,130
                                       2"                                     6,600
                                       3"                                    13,210
                                       4"                                    20,650
                                       6"                                    41,280
                                       8"                                    66,050
                                      10"                                    94,940
                                      12"                                   136,210
Source: City of Longview

Monthly Rates for Private Fire Sprinkler Systems
The monthly charges for private fire sprinkler systems are as follows:
                       Connection                 Inside                   Outside
                          Size                     City                      City
                           2"                     $12.33                   $ 20.34
                           3"                      15.38                     25.38
                           4"                      18.49                     30.50
                           6"                      24.65                     40.67
                           8"                      36.96                     60.98
                          10"                      49.27                     81.30
                          12"                      61.60                    101.63
Source: City of Longview

Charges to City-Owned Facilities
For each un-metered water service to a City park or other City facility, the City will pay into the Water/Sewer
Utility Fund, $1,110.36 per year for each such service.




                                                       18
Rate Comparison of Neighboring Water Systems
Shown below are comparative water rate charges of other water utilities near the City:
                2003 Single Family Monthly Water Rate Comparison (based on 1,000 cubic feet)

                  Water System                                                   Monthly Rate
                  City of Centralia                                                $31.90
                  City of Chehalis                                                  28.54
                  City of Ridgefield                                                25.35
                  Statewide Average                                                 22.73
                  City of Woodland                                                  20.85
                  Cowlitz County PUD                                                18.16
                  The City                                                          17.72
                  City of Kalama                                                    15.00
                  City of Camas                                                     12.60
                  Clark County PUD                                                  11.50
Source: Association of Washington Cities, 2003 Water, Sewer & Stormwater Fees

Sanitary Sewer Rates, Within the City Limits
1.   Residential and Churches:
     A. Residential: $29.74 per month for each single family residence
                        $29.74 per month for each unit of a duplex, triplex or fourplex
      B.    Apartments and mobile home courts: $118.96 per month plus $13.91 per month per unit
                                               for each unit over four
      C.    Churches:      $29.74 per month for each building with sewer service, attached or detached
      D.    Motels:        $118.96 per month plus $9.76 per month for each sleeping unit over four

2.    Commercial:
      A.    The rate will be based on the amount of metered water consumed per 30 consecutive days. For
            commercial businesses having the following size meters the minimum monthly rates are as follows:

                                            $ 29.74    per month for ¾" meter
                                              47.06    per month for 1" meter
                                              66.11    per month for 1½" meter
                                             102.49    per month for 2" meter
                                             139.35    per month for 3" meter
                                             175.34    per month for 4" meter
                                             228.05    per month for 6" meter
                                             324.46    per month for 8" meter
                                             420.87    per month for 10" meter
            The monthly minimum rate will be as shown above with the following rate for meter water
            consumed.
            First 1,000 cubic feet: Minimum charge
            Over 1,000 cubic feet:  $2.14 per hundred cubic feet
      B.    Where a commercial building houses more than one business establishment, a charge of $13.91 per
            month for each additional business establishment will be applied.
      C.    Hotels and motels will be commercial rate with minimum charge of $118.96 per month plus 9.73 per
            month for each sleeping unit or business unit over four.
      D.    Schools will be commercial rate except for the months of June, July and August, when such school
            facility is not in full regular use, during which months a flat rate of $78.36 per month will apply.

                                                              19
      E.    The charges for extra strength sewage are in addition to any other charges and are determined by
            taking a sample as required by NPDES discharge permits or at intervals determined by the Public
            Works Director.
                 $400.00 per 1,000 lbs. of BOD over 1.56 lbs. per 100 cubic feet of sewage
                 $550.00 per 1,000 lbs. for all suspended solids over 1.56 lbs. per 100 cubic feet of sewage
      F.    Subject to the Council’s written concurrence, the City Manager may make modifications, upon
            recommendation of the Director of Field Services, to commercial user charges for businesses who
            use metered water in excess of 7,500 cubic feet per month. Any such modification will be based on
            classification of user and will reflect the businesses’ water flow reaching the treatment facility as
            well as the degree of sewage treatment required for that class of business.

Sanitary Sewer Rates Outside City Limits
1.   Residential and Churches:
     A. Residential: Applicable residential rate for inside city limits, plus $19.33 per month.
      B.    Churches: Applicable church rate for inside city limits, plus $19.33 per month for each attached or
            detached building.
      C.    Apartments and trailer courts: Apartment and trailer court rate for inside city limits, plus an
            additional 65 percent of such rate.
      D.    Hotels: Hotel and motel rate for inside city limits, plus an additional 65 percent of such rate.

2.    Commercial:
      A. Commercial: All other commercial accounts, except schools, foregoing applicable commercial rate
          for inside city limits, plus an additional 65 percent of such rate.
      B.    Schools: The same school rate for inside city limits.
      C.    Charges for extra strength sewage will be as charged for inside city limits.


Sewer Service Connection Charges
Water service connection charges are pursuant to the Longview Municipal Code. A capital recovery fee will
be charged according to the meter size as follows:
                               Connection Size                        Capital Recovery Fee
                                      ¾"                                   $ 1,209
                                       1"                                      3,020
                                     1½"                                       6,030
                                       2"                                      9,650
                                       3"                                     19,300
                                       4"                                     30,160
                                       6"                                     60,310
                                       8"                                     96,500
                                      10"                                    138,710
                                      12"                                    199,000
Source: City of Longview

System Development Charge
In addition to all foregoing charges, a System Development Charge (“SDC”) of $1,957 for wastewater
treatment will be charged for each Equivalent Residential Unit (“ERU”) in accordance with the following
conversion tables:




                                                         20
Residential

                                Dwelling                                        ERUs/dwelling unit
                                Single family                                        1.00
                                Duplex, 3-plex, 4-plex                               0.86
                                Apartment (5 or more)                                0.67

Commercial

                                 Connection Size                                   ERUs/meter
                                      5/8”                                            1.00
                                      3/4“                                            1.50
                                        1”                                            2.50
                                      1 ½”                                            5.00
                                        2”                                            8.00
                                        3”                                           16.00
                                        4”                                           25.00
                                        6”                                           50.00
                                        8”                                           80.00
Source: City of Longview

Rate Comparison of Neighboring Sewer Systems
Shown below are comparative sewer rate charges of other sewer utilities near the City:
                2003 Single Family Monthly Sewer Rate Comparison (based on 1,000 cubic feet)

                  Sewer System                                                           Monthly Rate
                  City of Chehalis                                                         $58.96
                  City of Kalama                                                            39.75
                  City of Ridgefield                                                        35.10
                  City of Woodland                                                          34.00
                  Statewide Average                                                         31.03
                  The City                                                                  28.32
                  Clark County PUD                                                          22.50
                  City of Camas                                                             20.75
Source: Association of Washington Cities, 2003 Water, Sewer & Stormwater Fees

Billing and Collection Process
The billing is divided into cycles, monthly billed on the 9th and 15th, bi-monthly billed on the 24th, 28th and last
business day of the month. All bills are due 15 days after the billing date and can be paid in the office, by mail,
at a pay station or by automatic withdrawal from the customer’s bank account. Accounts left unpaid after the
30th day will be sent a past due notice and given 10 more days to pay. If unpaid by the 40th day, a $10 charge is
posted to the customer’s account. If account remains unpaid after the 41st day, the customer’s service could be
turned off. If an account is turned off for non-pay, all charges on the account must be paid for service to be
turned on. If a meter is tampered with, a lock may be installed or the meter pulled out of the ground.




                                                              21
                                         Statement of Net Assets/Comparative Balance Sheet
                                                          (Years Ending December 31)

                                         Audited                                                                              Audited
                                          2003*                                                   2002               2001                2000               1999
Assets                                                  Assets
Current Assets:                                         Current Assets:
 Cash                                $        72,092     Cash                                $        9,849     $       11,307     $         9,216     $        4,782
 Deposits with trustees                       10,000     Deposits with trustees                      35,000                  0               5,000             45,000
 Investments                               6,137,514     Investments                              1,726,623          1,648,617           1,430,710            983,448
 Receivables                               1,795,100     Receivables                              1,760,702          1,670,239           1,693,035          1,336,729
 Due from other governments                    6,493     Due from other funds/governments            23,175                249               1,575                  0
 Inventory                                   218,713     Inventory                                  217,670            177,237             151,921            170,637
 Prepaid expenses                                  0     Prepaid expenses                                 0                  0                   0                  0
Noncurrent Assets:                                      Restricted Assets:
 Restricted cash                              11,662     Cash                                        36,042             33,112              34,547             35,316
 Restricted investments                    1,366,027     Investments                              7,815,733          7,032,267           5,983,618          4,891,403
 Long-term receivables                           598     Other receivables                            3,423              9,573                   0                 75
 Deferred charges                            103,153    Long-Term Receivables:
 Capital assets:                                         Deferred assessments receivable              2,178               5,848               7,884            16,929
  Land                                       242,023    Fixed Assets:
  Buildings                                4,360,670     Land                                       243,887            243,887             243,887            243,887
  Improvements other than bldgs.          41,688,341     Buildings                                4,363,578          4,363,578           4,363,578          4,363,577
  Machinery & equipment                    2,549,565     Improvements other than bldgs.          40,535,149         40,305,953          39,978,791         39,500,357
  Construction in progress                 1,670,808     Machinery & equipment                    1,999,772          1,997,419           1,955,769          1,908,309
  Other plant assets                          35,453     Construction in progress                 1,029,502            280,716             112,326            343,852
  Less: Accumulated depreciation         (21,115,414)    Other plant assets                          35,487             35,487              35,487             35,487
                                                         Less: Accumulated depreciation          (19,963,923)       (18,687,067)        (17,422,147)       (16,172,841)
                                                        Deferred Charges                             118,464            125,195             146,269            167,343

Total Assets                         $    39,152,798    Total Assets                         $   39,992,311     $   39,253,617     $    38,731,466     $   37,874,290

Liabilities                                             Liabilities and fund equity
Current Liabilities:                                    Current Liabilities:
 Accounts payable                    $       274,355     Accounts payable                    $       93,562     $       59,031     $        30,439     $       32,202
 Matured revenue bonds payable                10,000     Matured revenue bonds payable               35,000                  0               5,000             45,000
 Due to other funds                          149,882     Due to other funds                          87,573            135,799             122,390            157,874
 Due to other governments                          0     Due to other governments                         0              6,300                   0                  0
 Accrued wages payable                        74,913     Accrued wages payable                       73,289             66,437                   0                  0
 Accrued employee benefits                   106,145     Accrued employee benefits                   97,999             93,514              94,614             84,376
 Customer deposits                           315,380     Revenues collected in advance               23,755             20,954              19,197             13,365
 Other current liabilities                    34,737     Current portion of long-term debt                0                  0                   0                  0
 Current portion of long-term debt         1,175,000     Other current liabilities                      372                414                  93                336
 Accrued bond interest payable                36,349    Current Liabilities Payable from
Noncurrent Liabilities                                  Restricted Assets:
 Bonds payable, net                        8,135,084     Customer deposits                          294,110            286,555             275,655            258,565
 Due to other governments                    532,256     Construction payables                      175,392             19,817                   0             22,548
                                                         Due to other funds                          45,920
                                                         Accrued revenue bond interest               39,128             46,428              50,616             54,534
                                                         Current revenue bonds payable            1,155,000            910,000             865,000            820,000
                                                        Long-Term Liabilities:
                                                         Revenue bonds payable                    9,370,000          9,295,000          10,205,000         11,070,000
                                                         Less: Unamortized discount                 (67,858)            (6,121)             (6,226)            (5,555)
                                                         Due to other governments                   623,539          1,994,585           2,207,851          2,414,212

Total Liabilities                    $    10,844,101    Total Liabilities                    $   12,046,781     $   12,928,713     $    13,869,629     $   14,967,457

Net Assets                                              Fund Equity:
 Invested in capital assets          $    19,529,190     Contributed capital                 $   17,202,223     $   16,977,238     $    16,454,340     $   16,206,978
 Unrestricted                              8,779,507     Reserved                                 6,145,648          5,812,152           4,826,894          3,771,148
                                                         Unreserved                               4,597,659          3,535,514           3,580,603          2,928,707

Total Net Assets                     $    28,308,697    Total Fund Equity                    $   27,945,530     $   26,324,904     $    24,861,837     $   22,906,833

Total Liabilities and Fund Equity    $    39,152,798    Total Liabilities and Fund Equity    $   39,992,311     $   39,253,617     $    38,731,466     $   37,874,290



* Reported in accordance with GASB 34 and subsequent pronouncements.
Source: City of Longview




                                                                               22
                                              Historical Coverage Table
                                             (Years Ending December 31)


                                                  2003                2002              2001              2000              1999
Operating Revenues
   Water charges                             $    4,191,461      $    3,891,163     $   3,776,848     $   3,985,245     $   3,544,725
   Sewer charges                                  6,230,108           5,881,143         5,821,990         5,755,335         4,213,302
   Connection charges                               233,272             276,416           198,763           247,363           293,074
   Miscellaneous                                     14,297               6,391            11,589            11,371             9,566
         Total operating revenues                10,669,138          10,055,113         9,809,190         9,999,314         8,060,667

Operating Expenses (1)
   Water costs/services                           2,861,508           2,518,033         2,331,403         2,353,075         2,317,086
   Sewer costs/services (2)                       5,663,521           4,584,027         4,630,916         3,769,382         2,863,804
         Total operating expenses                 8,525,029           7,102,060         6,962,319         6,122,457         5,180,890

Net Operating Income                              2,144,109           2,953,053         2,846,871         3,876,857         2,879,777

Non-Operating Revenues (4)
   Interest revenue                                111,184             182,980           361,852           449,479           463,290
   Contributed capital                             199,672             224,985           198,763           247,363           293,074
   Other non-operating revenues                     16,354              11,889            11,731            63,795             8,105
         Total Non-Operating Revenues              327,210             419,854           572,346           760,637           764,469

Add Back City Tax                                  514,397             488,041           448,800           492,823           416,812

Balance Available for Debt Service                2,985,716           3,860,948         3,868,017         5,130,317         4,061,058

Parity Bond Debt Service
    1992 Revenue Refunding (5)                            0            783,180           902,110           922,230           918,710
    1994 Revenue                                    215,513            194,263           198,012           191,165           194,220
    1997 Revenue                                    349,015            352,765           372,265           361,015           286,015
    2002 Revenue Refunding                        1,060,013             60,253                 0                 0                 0
         Total Parity Bond Debt Service           1,624,540           1,390,461         1,472,387         1,474,410         1,398,945

Debt Service Coverage                                    1.84                2.78              2.63              3.48              2.90

Amount after Parity Debt Service
  and City Tax                                     846,779            1,982,447         1,946,830         3,163,084         2,245,301

Junior Lien Debt Service                            97,518             304,519           305,432           306,344           269,706

Balance Available For Capital Improvements   $     749,261       $    1,677,928     $   1,641,398     $   2,856,740     $   1,975,595


(1) Includes administration fees and excludes system depreciation pursuant to the Ordinance.
(2) Includes the City’s proportional share of maintenance and operations and debt service components of budgeted
    regional sewage treatment plant expenses.
(3) Does not include a sewer reroute project which incurred costs in recognition of an intergovernmental loan.
(4) Excludes interest expense pursuant to the Ordinance.
(5) A portion of the 1992 Revenue Refunding Bonds were refunded by the 2002 Bonds.
Source: City of Longview




                                                                23
Projected Financial Information
The City does not as a matter of course make public projections as to future sales, earnings, or other results.
However, the City’s management has prepared the projected financial information set forth in this Official
Statement. The City has made certain assumptions with respect to conditions that may occur in the future.
While the City believes these assumptions are reasonable for the purpose of the projections, they are
dependent upon future events, and actual conditions may differ from those assumed. To the extent actual
future factors differ from those assumed or provided to the City by others, the actual results will vary from
those forecast. This information is not fact and should not be relied upon as being necessarily indicative of
future results, and readers of this Official Statement are cautioned not to place undue reliance on the projected
financial information.

In the following Projected Coverage Table, water revenues and expenses are increased 3.5 percent each year;
sewer charges are increased five percent each year; connection charges, miscellaneous revenues and all non-
operating revenues are increased four percent.




                                                       24
                                               Projected Coverage Table
                                              (Years Ending December 31)

                                                   2004                2005               2006               2007               2008
Operating Revenues
   Water charges                              $    4,338,162      $    4,489,998     $    4,647,148     $    4,809,798     $    4,978,141
   Sewer charges                                   6,541,613           6,868,694          7,212,129          7,572,735          7,951,372
   Connection charges                                 34,944              36,342             37,795             39,307             40,880
   Miscellaneous                                      14,869              15,464             16,082             16,725             17,394
          Total operating revenues                10,929,588          11,410,498         11,913,154         12,438,565         12,987,787

Operating Expenses (1)
   Water costs/services                            2,961,661           3,065,319          3,172,605          3,283,646          3,398,574
   Sewer costs/services (2)                        5,946,697           6,244,032          6,556,233          6,884,045          7,228,247
          Total operating expenses                 8,908,358           9,309,351          9,728,838         10,167,691         10,626,821

Net Operating Income                               2,021,230           2,101,147          2,184,316          2,270,874          2,360,966

Non-Operating Revenues (3)
   Interest revenue                                 115,631             120,257            125,067            130,070            135,272
   Contributed capital                              207,659             215,965            224,604            233,588            242,932
   Other non-operating revenues                      17,008              17,688             18,396             19,132             19,897
          Total Non-Operating Revenues              340,298             353,910            368,067            382,790            398,101

Add Back City Tax                                   534,973             556,372            578,627            601,772            625,843

Balance Available for Debt Service                 2,896,501           3,011,429          3,131,010          3,255,436          3,384,910

Parity Bond Debt Service
    1994 Revenue                                    102,600                   0                  0                  0                  0
    1997 Revenue                                    535,133             675,265            729,015            204,015            204,015
    2002 Revenue Refunding                          702,756             713,638            191,763            191,663            191,413
    2004 Revenue Refunding (this issue) (4)          48,013             231,545            623,035            619,235            613,148
          Total Parity Bond Debt Service           1,388,502           1,620,448          1,543,813          1,014,913          1,008,575

Debt Service Coverage                                     2.09                1.86               2.03               3.21               3.36

Amount after Parity Debt Service
  and City Tax                                      973,026             834,610           1,008,571          1,638,752          1,750,492

Junior Lien Debt Service                             96,606              95,693             94,779             93,867             92,954

Balance Available For Capital Improvements    $     876,420       $     738,917      $     913,792      $    1,544,885     $    1,657,538

(1) Includes administration fees and excludes depreciation pursuant to the Ordinance.
(2) Includes the City’s proportional share of maintenance and operations and debt service components of budgeted
    regional sewage treatment plant expenses.
(3) Excludes interest expense pursuant to the Ordinance.
(4) Preliminary, subject to change; excludes the Refunded Bonds.
Source: City of Longview




                                                                 25
                                                    The City
Longview, incorporated in 1924, encompasses approximately 13 square miles and has a 2004 estimated
population of 35,340. The City is a non-charter code city, with a council-manager form of government.
Council members are elected by the City residents for four-year terms; the Mayor is elected by the Council and
serves in that position for two years.

The current elected officials and their term expiration dates are listed below:
                         Council members                         Expiration of Term
                         Mark McCrady, Mayor                       January 1, 2006
                         Kurt Anagnostou                           January 1, 2008
                         Ron DiRe-Day                              January 1, 2006
                         Donald Jensen                             January 1, 2008
                         Ramona Leber                              January 1, 2008
                         Susan Stockard                            January 1, 2008
                         Dennis Weber                              January 1, 2006

Administration of City is performed under the direction of the City Manager. The City Manager is appointed
by the Council. City officials are appointed by the City Manager. Following are brief biographies of key
City officials:

City Manager—Edwin R. Ivey. Mr. Ivey was appointed as the City Manager in 1987, coming to the City with 16
years administrative experience with municipal governments. He has a master’s degree in public
administration from the University of Oregon and is a member of the Washington City Management
Association and the International City Management Association.

Assistant City Manager-Robert J. Gregory. Mr. Gregory holds a BSCET from the Oregon Institute of
Technology, Klamath Falls, Oregon and is a licensed professional engineer. He was employed by Cowlitz
County for four years prior to his employment as the City of Kelso’s Public Works Director in 1988. In 1998, he
was appointed to the position of Public Works Director for the City of Longview, jointly administering the
Public Works departments of both cities. He was promoted in 1999 to Assistant City Manager for the City of
Longview.

City Attorney—Dave C. Spencer. Mr. Spencer graduated from the University of Washington School of Law and
was in private practice until mid-1988 when he was appointed as the full-time City Attorney. Prior to his
appointment, he served as Assistant City Attorney from 1960 until 1978 and as City Attorney from early 1978
until mid-1988 under a private contractual agreement.

Finance Director—Kurt Sacha. Mr. Sacha joined the City in 1981 as its Assistant Finance Director. He was
promoted to his current position as Finance Director for the City in October 1999. Mr. Sacha has a Bachelor of
Science degree in financial management from Linfield College. He is a member of the Washington State
Finance Officers Association and serves on the education committee. In addition, Mr. Sacha is a member of the
Washington Municipal Treasurers Association and the Government Finance Officers Association.

The City provides a full range of municipal services to its citizens, including police, fire protection, parks and
recreation, streets, planning and zoning, code enforcement, library, engineering, data processing, water and
sewer, and administration. Wastewater treatment is provided by a regional sewage treatment plant operated
through an interlocal agreement. Longview is a member of the following regional service providers: the
Cowlitz Transit Authority and the Sewer Operating Board. Cowlitz County provides the City’s Emergency
Dispatch Center. Solid waste collection and water meter reading are provided to the City by contract with
private companies. The City also provides a municipal golf course and a tennis and racquet ball complex open
to all. For financial reporting purposes all the services are included in the funds and account groups where
appropriation levels are established by the Council.




                                                        26
Labor Relations
Approximately 284 people are currently employed by the City on a full-time basis in addition to 86 part-
time/seasonal employees. The City’s employees are represented by six collective bargaining agreements,
described below:
                                                            No. of Employees
Union                                                         Represented             Agreement Expires
International Association of Firefighters Local #828                36                December 31, 2002
 AFL-CIO
International Association of Firefighters Mid-Local                  4                December 31, 2004
 Management, #3375 AFL-CIO
Longview Police Guild                                               49                December 31, 2005
Employee Bargaining Association                                     94                December 31, 2004
Amalgamated Transit Union, Local #658 AFL-CIO                        9                December 31, 2005
AFSCME, Local 1262-CL, AFL-C10                                      12                December 31, 2005

Pension System
Substantially all full-time and qualifying part-time employees participate in one of the following statewide
local government retirement systems administered by the Washington State Department of Retirement
Systems, under cost-sharing, multiple-employer public employee retirement systems. Actuarial information is
on a system-wide basis and is not considered pertinent to the City’s financial statements. City employees are
covered by the Public Employees’ Retirement System (“PERS”). Police officers and firefighters are covered by
the Law Enforcement Officers and Firefighters Retirement Fund (“LEOFF”). Contributions to the systems by
both employee and employer are based upon gross wages covered by plan benefits.

PERS includes three plans: Plans I and II are defined benefit plans and Plan III is a combination defined
benefit/defined contribution plan. PERS participants who joined the system by September 30, 1977 are Plan I
members. Those who joined thereafter are enrolled in Plan II unless they exercise an option to transfer their
membership to Plan III. Plan III became effective March 1, 2003. Retirement benefits are financed from both
employee and employer contributions and investment earnings. Retirement benefits under Plans I and II are
vested after completion of five years of eligible service. Plan III members are vested after ten years of eligible
service. Participants enrolled in Plan II may elect to transfer to Plan III, during the specified transfer window
period that occurs in January of each year. Once employees transfer to Plan III, they may not return to Plan II
membership. In addition, new PERS eligible employees after September 1, 2002 who do not specify a plan
choice will transfer automatically to Plan III.

Retirement benefits are financed from both employee and employer contributions and investment earnings
and are vested after completion of five years of eligible service. For the year ending December 31, 2003, the
City’s contribution of $330,823, or 1.40 percent of covered payrolls, represents its full liability under the
system, except that future rates may be adjusted to meet the system needs.

LEOFF. LEOFF includes two plans. For the year ending December 31, 2003, the City’s contribution to LEOFF
I (for participants who joined the system by September 30, 1977) of 0.22 percent and to LEOFF II (participants
who joined after September 30, 1977) of 3.25 percent of covered payroll totaled $467,111, representing its full
liability under the system, except that future rates may be adjusted to meet the system needs.

Accounting Practices
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a
separate accounting entity. All governmental funds are accounted for on a “flow of current financial
resources” measurement focus. The reported fund balance is considered a measure of “available expendable
resources.” Governmental fund operating statements focus on measuring changes in financial position, rather
than net income. They present increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in spendable resources.




                                                       27
Governmental and agency funds are accounted for on the modified accrual basis of accounting. The modified
accrual basis differs from the accrual basis in the following ways: (i) purchases of capital assets are considered
expenditures; (ii) redemptions of long-term debt are considered expenditures when due; (iii) revenues are
recognized only when they become both measurable and available to finance expenditures of the current
period; (iv) inventories and prepaid items are reported as expenditures when purchased; and (v) interest on
long-term debt is not accrued, but is recorded as an expenditure when due.

Budgetary Policies
The City prepares budgets in accordance with chapter 35A.34 RCW. Biennial appropriated budgets are
adopted for the general and special revenue funds on the modified accrual basis of accounting. Proprietary
funds are budgeted on the accrual basis. There are no differences between the budgetary basis and generally
accepted accounting principles.

The City Manager is authorized to transfer budgeted amounts between departments within any fund and
object classes within departments; however, any revisions that alter the total expenditures of a fund or that
affect the number of authorized employee positions, salary ranges, hours, or other conditions of employment
must be approved by the Council.

Investment Practices
The City’s investment policy calls for the investment of public funds in a manner which will provide the
highest possible rate of investment return without risking loss while meeting daily cash flow demands and
conforming with all State statutes governing investment of public funds. The Director of Finance is
responsible for the investment program, including procedures and controls. Investments are guided by the
“Prudent Person Rule.” The City’s primary objectives are, in order of priority: safety of principal, liquidity
and return on investment.

As of December 31, 2003, the City’s investment portfolio, at fair value, totaled $24,451,642. Of that total,
$24,448,612 was invested in the State pool. The remainder, $3,030, was invested in U.S. Government Securities.

Risk Management
Insurance. The City is a member of Washington Cities Insurance Authority (“WCIA”). Utilizing chapter 48.62
RCW (self-insurance regulation) and chapter 39.34 RCW (Interlocal Cooperation Act), nine cities originally
formed WCIA on January 1, 1981. WCIA was created for the purpose of providing a pooling mechanism for
jointly purchasing insurance, jointly self-insuring, and/or jointly contracting for risk management services. To
date, WCIA has a total of 107 members.

WCIA offers a combination of self-insurance or standard insurance to cover liability and property risks, and
provides related risk management services.

Liability coverage is written on an occurrence basis and no deductibles are applied. It includes general,
automobile, police professional, public employee errors and omissions, stop gap, and employee benefits
liability. WCIA will pay all sums, which its members are legally obligated to pay, subject to all terms and
conditions of the WCIA’s Coverage Document, up to the WCIA’s $15 million limit consisting of $3 million per
occurrence in the self-insurance layer, and $12 million per occurrence in the excess reinsured layer. The $15
million limit is subject to the annual aggregates per member as follows: (i) $10 million annual aggregate
Products/Completed Operations; (ii) $10 million annual aggregate Errors or Omissions Liability Coverage; (iii)
$10 million Employee Benefits Liability Coverage; and (iv) $3 million Terrorism.

The City has experienced no significant reductions in insurance coverage from coverage in the prior year by
major risk category, and has incurred no settlements that exceeded insurance coverage in any of the preceding
three years.

Standard property insurance coverage for buildings and personal property, automobile physical damage,
fidelity bonds, inland marine, and boiler and machinery are purchased on a group basis. Various deductibles


                                                       28
apply by type of coverage. Auto physical damage is elf-funded. Property insurance is self-funded up to
$25,000 with standard property insurance purchased above that amount.

In-house services include risk management consultation, loss control field services, claims and litigation
administration, and loss analysis. Third party contracts exist for the use of a claims investigation company,
consultants for personnel issues and land use problems, insurance brokerage, and lobbyist services.

WCIA is fully funded by its members, who make annual assessments on a prospectively rated basis, as
determined by an outside, independent actuary. The assessment covers loss, loss adjustment and
administrative expenses. As outlined in the interlocal agreement establishing WCIA, WCIA retains the right to
additionally assess the membership for any funding shortfall.

An investment committee, using investment brokers, produces additional revenue by investment of WCIA’s
assets in financial instruments which comply with all State guidelines. These revenues directly offset portions
of the membership’s annual assessment.

Auditing of City Finances
The State Auditor is required to examine the affairs of cities at least once every two years. The City is audited
annually. The examination must include, among other things, the financial condition and resources of the
City, whether the laws and constitution of the State are being complied with, and the methods and accuracy of
the accounts and reports of the City. Reports of the auditor’s examinations are required to be filed in the office
of the State Auditor and in the auditing department of the City.

The audited financial statements of the City for the year ended December 31, 2003, attached as Appendix D,
are incorporated by reference to this Official Statement and will be filed with the four nationally recognized
municipal securities information repositories (“NRMSIR”). Future financial statements may be ordered by
contacting the individual NRMSIRs at the addresses below, or by accessing the NRMSIR website, located at:
http://www.sec.gov/info/municipal/nrmsir.htm.

        Bloomberg Financial Markets                    Interactive Data
        Municipal Repository                           Attn: Repository
        P.O. Box 840                                   100 Williams Street
        Princeton, NJ 08542–0840                       New York, NY 10038
        Phone: (609) 279–3225                          Phone: (212) 771-6899
        Fax: (609) 279–5962                            Fax: (212) 771-7390
        munis@bloomberg.com                            NRMSIR@interactivedata.com
        DPC Data Inc.                                  Standard & Poor’s Securities Evaluations Inc.
        One Executive Drive                            55 Water Street, 45th Floor
        Fort Lee, NJ 07024                             New York, NY 10041
        Phone: (201) 346–0701                          Phone: (212) 438-4595
        Fax: (201) 947–0107                            Fax: (212) 438-3975
        nrmsir@dpcdata.com                             nrmsir_repository@sandp.com




                                                       29
                                           Demographic Information
The City is located in western Cowlitz County (the “County”), and encompasses
13.70 square-miles. The City is located on Interstate 5, approximately 47 miles north
of Portland and 135 miles south of Seattle. The City, along with its neighboring City
of Kelso, forms the urban center of the County and the highest concentration of
population. The following table shows historical population of the City and Cowlitz
County.

Population                                                                              Cowlitz
                                                                                        County
The following table shows the historical population for the County and the City:

                                                 Historical Population
                          Year          Cowlitz County         City of Longview
                          2004             95,300                    35,340
                          2003             94,900                    35,290
                          2002             94,400                    35,310
                          2001             93,900                    35,100
                          2000 *           92,948                    34,660
                          1990 *             82,119                 31,499
* U.S. Census Count
Washington Source: State Office of Financial Management

Economic Developments
The industrial community within the City has downsized due to recent economic conditions, both locally and
nationally. Industrial properties within the City lost approximately $215 million of assessed value for tax
collections in year 2004. This figure includes assessed value reductions for the Mirant Corporation (Mint Farm
Generation LLC) and Longview Aluminum.

Mirant Corporation began construction in October 2001 of a natural gas-fired power plant, Mint Farm
Generation LLC, a 270 MW combined-cycle gas fired power plant. Completion of the project was scheduled
for June 2003. In August 2002 work on the project was suspended with approximately 34 percent of
construction completed. There are no current plans to complete the project.

Longview Aluminum owns an aluminum smelter within the City. The facility has been out of operation since
2001 due to high energy prices. The company has filed for Chapter 11 bankruptcy and has not paid taxes for
the past two years as of spring 2004.

The former Prudential Steel site is in the process of being acquired by Flexible Foam for the manufacture of
foam products, including carpet padding and packaging materials. It is anticipated that the facility will
employ up to 100 people.

The Triangle Mall in Longview is currently under construction with a $20 million renovation and expansion.
Major tenants will include Winco Foods and a Michael’s craft store.




                                                          30
Employment. Major employers in the County include the following:

                                                    Cowlitz County
                                                    Major Employers
                                                                                                        No. of
             Employer                                City                      Product                Employees
Longview Fibre Company                            Longview         Kraft paper                           1,687
PeaceHealth/St. John Medical Center               Longview         Health care                           1,634
Weyerhaeuser                                      Longview         Wood products                         1,332
J. H. Kelly                                       Longview         Contractor                            1,200
Longview School District                          Longview         Education                               881
Foster Farms                                      Kelso            Chicken processing                      900
Lower Columbia College                            Longview         Community College                       776
Kelso School District                             Kelso            Education                               625
Cowlitz County                                    Kelso            Government                              575
NORPAC                                            Longview         Newsprint                               500
City of Longview                                  Longview         Government                              365
Steelscape Inc.                                   Kalama           Coated Steel                            300
RSG Forest Products                               Kalama           Forest products                         255
Kaiser Permanente                                 Longview         Health maintenance organization         250
Fred Meyer                                        Longview         Department store                        230
Koelsch Senior Communities                        Longview         Retirement/Senior communities           230
Noveon Kalama                                     Kalama           Chemicals                               172
Columbia Analytical Services                      Kelso            Testing and research                    161
Source: Kelso Longview Chamber of Commerce March 2003

Income. Historic personal income and per capita income levels for the County and the State are shown below:

                                      Cowlitz County and State of Washington
                                       Total Personal and Per Capita Income
                                 Cowlitz County                             State of Washington
                           Total Personal     Per Capita                 Total Personal     Per Capita
            Year        Income (in millions)    Income                Income (in millions)   Income
            2003               N/A                 N/A                   $204,373,240 *       $33,332 *
            2002             $2,373.4            $25,104                  198,017,690          32,638
            2001              2,338.6             24,936                  193,395,290          32,271
            2000              2,201.9             23,668                  187,853,404          31,780
            1999              2,095.9             22,580                  175,491,324          30,037
            1998              2,001.8             21,688                  163,761,546          28,384
* Preliminary.
Source: U.S. Department of Commerce, Bureau of Economic Analysis




                                                             31
Taxable Retail Sales. Taxable retail sales reflect only those sales subject to retail sales tax. Historic taxable retail
sales for the City and the County are shown below:
                                       City of Longview and Cowlitz County
                                                Taxable Retail Sales

                             Year          City of Longview            Cowlitz County
                             2004*           $ 139,778,120             $ 239,708,959
                             2003              600,194,375              1,081,266,336
                             2002              680,827,292              1,134,153,356
                             2001              590,042,283              1,050,003,916
                             2000              578,062,105              1,038,138,126
                             1999              596,532,688              1,024,340,214
* Through the first quarter only.
Source: Washington State Department of Revenue

Building Permits. Residential building permits are an indicator of growth within a region. The number and
valuation of new single-family and multi-family residential building permits in Cowlitz County are listed below:

                                                  Cowlitz County*
                                             Residential Building Permits
                       New Single Family Units                  New Multi Family Units                   Total
      Year            Number        Valuation                  Number        Valuation                 Valuation
      2003              234        $ 39,078,182                   23       $   1,118,130           $    40,196,312
      2002              314           46,141,217                 109           5,826,830                51,968,047
      2001              241           33,494,622                 119           6,053,435                39,548,057
      2000              276           38,952,630                 165           8,733,860                47,686,490
      1999              342           44,574,256                 146           8,088,593                52,662,849
      1998              334           41,183,190                  88           4,201,019                45,384,209
* Includes Unincorporated Cowlitz County and City of Longview
Source: U.S. Census Bureau




                                                          32
Employment within the County is further described in the following tables.

                                                 Cowlitz County
                               Resident Civilian Labor Force and Employment and
                                   Nonagricultural Wage and Salary Workers
                                                                                Annual Average
                                                          2002(1)       2001(2)     2000       1999              1998
Civilian Labor Force                                       40,740        40,140     41,060     41,910            42,230
 Employment                                                36,290        35,730     37,890     38,960            38,960
 Unemployment                                               4,450         4,410      3,170      2,950             3,250
   Percent of labor force                                  10.9%         11.0%        7.7%      7.0%              7.7%
SIC Industry Title*
Total Nonagricultural Wage and Salary Workers              36,760        37,070       38,590       38,080        37,640
Manufacturing                                               7,900         8,660        9,850        9,950         9,860
Construction and mining                                     2,540         2,440        2,780        2,730         2,740
Transportation and public utilities                         1,470         1,500        1,630        1,670         1,610
Wholesale and retail trade                                  1,250         1,320        8,720        8,620         8,450
Finance, insurance and real estate                          1,240         1,210        1,220        1,280         1,340
Services                                                    9,380         8,980        8,690        8,180         7,950
Government                                                  5,850         5,880        5,710        5,750         5,710

                                                            Annual Average
                                                           2003(1)   2002(2)
Civilian Labor Force                                       40,500    40,740
 Employment                                                36,350    36,290
 Unemployment                                               4,150     4,450
   Percent of labor force                                  10.3%     10.9%
NAICS Industry Title*
Total Nonfarm                                              36,710        37,210
Construction, Mining, Utilities & Logging                   3,870         3,330
   Construction, Mining and Utilities                       3,110         2,580
   Logging                                                    760           740
Manufacturing                                               6,970         7,170
   Wood Product Manufacturing                               1,170         1,190
   Paper Manufacturing                                      2,910         3,060
   Other Manufacturing                                      2,890         2,920
Wholesale Trade                                             1,180         1,090
Retail Trade                                                4,470         4,310
   Food and Beverage Stores                                   990           980
   General Merchandise Stores                               1,060         1,000
   Other Retail                                             2,420         2,330
Transportation and Warehousing                              1,670         1,210
Finance and Insurance                                         910           970
Admin, Support and Waste Management                         1,020           860
Health Care and Social Assistance                           4,490         4,740
Accommodation and Food Services                             2,860         2,920
Other Services                                              3,220         3,830
Government                                                  6,050         5,780
    Federal Government                                        280           260
    State Government                                        1,210         1,210
    Local Government                                        4,560         4,320
        K-12 Education                                      2,950         2,660
        Other Local Government                              1,610         1,660
(1) Preliminary.
(2) Revised.
*   The North American Industry Classification (NAICS) is replacing the Standard Industrial Classification (SIC) code
    system.
Source: Washington State Employment Security Department

                                                           33
                                                Tax Exemption
General
In the opinion of Preston Gates & Ellis LLP, Seattle, Washington, Bond Counsel, interest on the Bonds is
excluded from gross income subject to federal income taxation pursuant to Section 103 of the Internal Revenue
Code of 1986, as amended and any Treasury Regulations promulgated thereunder (collectively the “Code”),
provided the arbitrage requirements of Section 148 of the Code described in this section under the heading
“Continuing Requirements” are complied with.

The Bonds are not private activity bonds, and interest on the Bonds is not an item of tax preference for
purposes of determining alternative minimum taxable income for individuals or corporations under the Code.
However, interest on the Bonds is taken into account in the computation of adjusted current earnings for
purposes of the corporate alternative minimum tax under Section 55 of the Code as more fully described in this
section under the heading “Certain Federal Income Tax Consequences.”

Except as described herein, Bond Counsel expresses no opinion on any federal, state or local tax consequence
arising with respect to ownership of the Bonds.

Continuing Requirements
Section 148 of the Code has continuing arbitrage requirements that must be met subsequent to the issuance of
the Bonds for the interest on the Bonds to be, and remain, exempt from regular federal income taxation. These
requirements include provisions that prescribe investment yield limitations for the proceeds of the Bonds and
that certain investment earnings be paid on a periodic basis to the federal government. The Ordinance
contains covenants of the City to comply with these continuing arbitrage requirements. Bond Counsel has not
undertaken to determine (or to inform any person) whether any action taken (or not taken) or events occurring
(or not occurring) after the date of issuance of the Bonds may affect the tax status of the interest on the Bonds.

Certain Federal Income Tax Consequences
The following is a discussion of certain federal tax matters under the Code. This discussion does not purport
to deal with all aspects of federal taxation that may be relevant to particular bondowners. Prospective
bondowners, particularly those who may be subject to special rules, are advised to consult their own tax
advisors regarding the federal tax consequences of owning and disposing of the Bonds, as well as any tax
consequences arising under the laws of any state or other taxing jurisdiction.

Alternative Minimum Tax on Corporations. Section 55 of the Code imposes an alternative minimum tax on
corporations equal to the excess of the tentative minimum tax for the taxable year over the regular tax for such
year. The tentative minimum tax is based upon alternative minimum taxable income which is regular taxable
income with certain adjustments and increased by the amount of certain items of tax preference. One of the
adjustments is a portion (75 percent for any taxable year beginning after 1989) of the amount by which a
corporation’s adjusted current earnings exceeds the corporation’s alternative minimum taxable income
(determined without regard to such adjustment and the alternative tax net operating loss deduction). Interest
on tax-exempt obligations, such as the Bonds, is included in a corporation’s adjusted current earnings.

For taxable years beginning after December 31, 1997, the corporate alternative minimum tax is repealed for
small business corporations that had average gross receipts of less then $5 million for the three-year period
beginning after December 31, 1994, and such small business corporations will continue to be exempt from the
corporate alternative minimum tax so long as their average gross receipts do not exceed $7.5 million.

Qualified Tax-Exempt Obligations. The City has designated the Bonds as “qualified tax-exempt obligations” for
banks, thrift institutions and other financial institutions so that such financial institutions will not be denied a
deduction of 100 percent of their interest expenses allocable to the Bonds. However, corporate tax preference
rules reduce by 20 percent the amount that may be deducted by such financial institutions for interest on funds
allocable to tax-exempt obligations such as the Bonds.


                                                        34
Borrowed Funds. The Code provides that interest paid on funds borrowed to purchase or carry tax-exempt
obligations during a tax year is not deductible. In addition, under rules used by the Internal Revenue Service
for determining when borrowed funds are considered used for the purpose of purchasing or when carrying
particular assets, the purchase of obligations may be considered to have been made with borrowed funds even
though the borrowed funds are not directly traceable to the purchase of such obligations.

Property and Casualty Insurance Companies. The deduction for loss reserves for property and casualty insurance
companies is reduced by 15 percent of the sum of certain items, including the interest received on tax-exempt
obligations, such as the Bonds.

Social Security and Railroad Retirement Benefits. The Code also requires recipients of certain Social Security or
Railroad Retirement benefits to take into account, in determining gross income, receipts or accruals of interest
that is exempt from federal income tax.

Branch Profits Tax. Certain foreign corporations doing business in the United States may be subject to a branch
profits tax on their effectively connected earnings and profits, including tax-exempt interest on obligations
such as the Bonds.

S Corporations. Certain S corporations that have subchapter C earnings and profits at the close of a taxable year
and gross receipts more than 25 percent of which are passive investment income, which includes interest on
tax-exempt obligations, such as the Bonds, may be subject to a tax on excess net passive income.

Premium Bonds
The initial public offering price of Bonds of certain maturities may be greater than the amount payable on such
Bonds at maturity (“Premium Bonds”). All prospective purchasers of Premium Bonds should consult their tax
advisors with respect to the federal, state, local and foreign tax consequences of the purchase, ownership,
redemption, sale or other disposition of Premium Bonds.

Original Issue Discount
The initial public offering price of Bonds of certain maturities may be less than the amount payable on such
Bonds at maturity (“Discount Bonds”). All prospective purchasers of Discount Bonds should consult their tax
advisors with respect to the federal, state, local and foreign tax consequences of the purchase, ownership,
redemption, sale or other disposition of Discount Bonds.


                                                    Rating
As noted on the cover page of this Official Statement, the City will apply for a rating for the Bonds from
Moody’s Investors Service. When and if obtained, the rating will reflect only the views of the rating agency
and an explanation of the significance of the rating may be obtained from the rating agency. There is no
assurance that the rating, once obtained will be retained for any given period of time or that the rating will not
be revised downward or withdrawn entirely by the rating agency if, in its judgment, circumstances so warrant.
Any such downward revision or withdrawal of the rating will be likely to have an adverse effect on the market
price of the Bonds.


                                          Continuing Disclosure
In accordance with Section (b)(5) of Securities and Exchange Commission Rule 15c2–12 under the Securities
Exchange Act of 1934, as the same may be amended from time to time (the “Rule”), the City has agreed in the
Ordinance for the benefit of the owners of the Bonds to provide or cause to be provided to each nationally
recognized municipal securities information repository (“NRMSIR”) and to the state information depository
for the State of Washington (if one is created) (“SID”), in each case as designated by the Securities and
Exchange Commission (the “Commission”) in accordance with the Rule, the following annual financial
information and operating data for the prior fiscal year (commencing in 2005 for the fiscal year ending
December 31, 2004): (i) annual financial statements showing ending fund balances for the System prepared in

                                                       35
accordance with generally accepted accounting principles applicable to government entities (and modified as
may be required by the Washington State Auditor pursuant to RCW 43.09.200 or any successor statute) and
generally of the type included in the official statement for the Bonds under the heading “Historical Coverage
Table” and “Statement of Net Assets/Comparative Balance Sheet”; (ii) principal amount of the Parity Bonds;
(iii) debt service coverage for the Parity Bonds; (iv) rates for the System; and (v) number of customers of the
System.

Such annual information and operating data described above will be so provided on or before the end of nine
months after the end of the City’s fiscal year. The City’s current fiscal year ends on December 31. The City
may adjust such fiscal year by providing written notice of the change of fiscal year to each then existing
NRMSIR and the SID, if any. In lieu of providing such annual financial information and operating data, the
City may cross-reference to other documents provided to the NRMSIR, the SID or to the Commission, and, if
such document is a final official statement within the meaning of the Rule, such document will be available
from the Municipal Securities Rulemaking Board (“MSRB”).

If not provided as part of the annual financial information discussed above, the City will provide the City’s
audited annual financial statement prepared in accordance with generally accepted accounting principles (and
modified as may be required by the Washington State Auditor pursuant to the statute cited above (or any
successor statutes) when and if available to each then existing NRMSIR and the SID, if any.

The City further agrees to provide or cause to be provided, in a timely manner, to each NRMSIR or to the SID
and to the MSRB, notice of the occurrence of any of the following events with respect to the Bonds, if material:
(i) principal and interest payment delinquencies; (ii) non-payment related defaults; (iii) unscheduled draws on
debt service reserves reflecting financial difficulties; (iv) unscheduled draws on credit enhancements reflecting
financial difficulties; (v) substitution of credit or liquidity providers, or their failure to perform; (vi) adverse tax
opinions or events affecting the tax-exempt status of the Bonds; (vii) modifications to the rights of Bond
holders; (viii) optional, contingent or unscheduled calls of any Bonds other than scheduled sinking fund
redemptions for which notice is given pursuant to Exchange Act Release 34-23856; (ix) defeasances; (x) release,
substitution or sale of property securing repayment of the Bonds; and (xi) rating changes.

The City’s obligations to provide annual financial information and notices of material events will terminate
upon the legal defeasance, prior redemption or payment in full of all of the Bonds. This section, or any
provision hereof, will be null and void if the City (i) obtains an opinion of nationally recognized bond counsel
to the effect that those portions of the Rule which require this section, or any such provision, are invalid, have
been repealed retroactively or otherwise do not apply to the Bonds; and (ii) notifies each then existing
NRMSIR and the SID of such opinion and the cancellation of this section. Notwithstanding any other
provision of the undertaking, the City may amend the provisions described in this section and any provision of
this section may be waived, with an approving opinion of nationally recognized bond counsel and in
accordance with the Rule.

In the event of any amendment of or waiver of a provision of this section, the City will describe such
amendment in the next annual report, and will include, as applicable, a narrative explanation of the reason for
the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the
presentation) of financial information or operating data being presented by the City. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of
such change will be given in the same manner as for a material event, and (ii) the annual report for the year in
which the change is made will present a comparison (in narrative form and also, if feasible, in quantitative
form) between the financial statements as prepared on the basis of the new accounting principles and those
prepared on the basis of the former accounting principles.

A Bond Owner’s or Beneficial Owner’s right to enforce the provisions of the City’s undertaking described in
this section will be limited to a right to obtain specific enforcement of the City’s obligations, and any failure by
the City to comply with the provisions of this undertaking will not be an event of default with respect to the
Bonds. For purposes of this section, “Beneficial Owner” means any person who has the power, directly or
indirectly, to vote or consent with respect to, or to dispose of ownership of, any bonds, including persons
holding bonds through nominees or depositories.

                                                          36
Other Continuing Disclosure Undertakings of the City. The City has entered into undertakings to provide annual
information and the notice of the occurrence of certain events with respect to all bonds issued by the City and
is in compliance with all such undertakings.


                                         Legal and Underwriting
Approval of Counsel
Legal matters incident to the authorization, issuance and sale of the Bonds by the City are subject to the
approving legal opinion of Bond Counsel. A specimen of the opinion of Bond Counsel is attached hereto.
Bond Counsel will be compensated only upon the issuance and sale of the Bonds. Bond Counsel has not been
retained to review and has not reviewed this Official Statement for completeness or accuracy and will not offer
an opinion concerning this Official Statement.

Litigation
There is no litigation pending or threatened questioning the validity of the Bonds nor the power and authority
of the City to issue the Bonds. There is no litigation pending or threatened which would materially affect the
finances of the City or affect the City’s ability to meet debt service requirements on the Bonds.

Official Statement
In the Ordinance the City will deem final this Preliminary Official Statement as of its date for the purpose of
Securities and Exchange Commission Rule 15c2-12.

Financial Advisor
In connection with the authorization and issuance of the Bonds, the City has retained Yeasting & Associates,
Seattle, Washington, as its financial advisor (the “Financial Advisor”).

The Financial Advisor is not obligated to undertake, and has not undertaken, either to make an independent
verification of or to assume responsibility for, the accuracy, completeness, or fairness of the information
contained in this Official Statement.

Underwriting
The Bonds are being purchased by Seattle-Northwest Securities Corporation, the Underwriter. The purchase
contract provides that the Underwriter will purchase all of the Bonds, if any are purchased, at a price of _____
percent of the par value of the Bonds, plus accrued interest. The Bonds will be reoffered at an average price of
_____ percent of the par value of the Bonds. After the initial public offering, the public offering prices may be
varied from time to time.

Concluding Statement
All estimates, assumptions, statistical information and other statements contained herein, while taken from
sources considered reliable, are not guaranteed by the Underwriter or the City. So far as any statement herein
includes matters of opinion, or estimates of future expenses and income, whether or not expressly so stated,
they are intended merely as such and not as representations of fact.

The information contained herein should not be construed as representing all conditions affecting the City or
the Bonds. Additional information may be obtained from the City. The statements relating to the Ordinance
are in summarized form, and in all respects are subject to and qualified in their entirety by express reference to
the provisions of such document in its complete form.

The agreements of the City are set forth in such documents, and the information assembled herein is not to be
construed as a contract with the Owners of the Bonds. Information with respect to the City set forth in this
Official Statement has been supplied by the City, and the Underwriter has relied on the City with respect to the
accuracy and sufficiency of such information.


                                                       37
Appendix A


Bond Ordinance
    Appendix B


Opinion of Bond Counsel
                                        September 23, 2004



City of Longview
Longview, Washington

Seattle-Northwest Securities Corporation
Seattle, Washington

       Re:     City of Longview, Washington
               Water and Sewer Revenue Refunding Bonds, 2004 — $_________

Ladies and Gentlemen:

       We have acted as bond counsel to the City of Longview, Washington (the “City”) and
have examined a certified transcript of the proceedings taken in the matter of the issuance by the
City of its Water and Sewer Revenue Refunding Bonds, 2004 in the aggregate principal amount
of $_________ (the “Bonds”), issued for the purpose of refunding certain water and sewer
revenue bonds of the City. The Bonds are issued pursuant to an ordinance of the City adopted on
September 9, 2004 (the “Bond Ordinance”). Capitalized terms not otherwise defined herein shall
have the meanings given such terms in the Bond Ordinance.

       The Bonds are not subject to optional redemption.

        We have not been engaged nor have we undertaken to review the accuracy, completeness
or sufficiency of the official statement or other offering material related to the Bonds (except to
the extent, if any, stated in the official statement), and we express no opinion relating thereto, or
relating to the undertaking by the City to provide ongoing disclosure pursuant to Rule 15c2-12 of
the Securities and Exchange Commission.

        As to questions of fact material to our opinion, we have relied upon representations of the
City contained in the Bond Ordinance and in the certified proceedings and other certifications of
public officials and others furnished to us without undertaking to verify the same by independent
investigation.

       From such examination it is our opinion, as of this date and under existing law, that:
City of Longview, Washington
Seattle-Northwest Securities Corporation
September 23, 2004
Page 2



        1.      The Bonds have been legally issued and constitute valid special obligations of the
City, both principal thereof and interest thereon being payable solely out of a special fund of the
City known as the “Longview Water and Sewer Revenue Bond Fund” (the “Bond Fund”), except
to the extent that the enforcement of the rights and remedies of such owners of the Bonds may be
limited by laws relating to bankruptcy, insolvency, moratorium, reorganization or other similar
laws of general application affecting the rights of creditors, by the application of equitable
principles and the exercise of judicial discretion.

        2.      The Bond Ordinance is a legal, valid and binding obligation of the City, has been
duly authorized, executed and delivered and is enforceable in accordance with its terms, except
to the extent that enforcement may be limited by laws relating to bankruptcy, insolvency,
moratorium, reorganization or other similar laws of general application affecting the rights of
creditors, by the application of equitable principles and the exercise of judicial discretion.

         3.      The City has irrevocably bound itself to set aside and pay into said Bond Fund out
of the earnings and revenue of the water and sewer system of the City (the “System”) and out of
all utility local improvement district assessments required by law and ordinances of the City to
be paid into the Bond Fund, certain fixed amounts necessary to pay the principal of and interest
on the Bonds as the same become due.

       4.      The City has further pledged that the payments to be made into said Bond Fund
out of the earnings and Revenue of the System shall constitute a lien and charge upon such
earnings and Revenue of the System superior to all other charges of any kind or nature
whatsoever, except for Cost of Maintenance and Operation (as such term is defined in the Bond
Ordinance) and equal in rank to the lien and charge on such earnings and Revenue of the System
to secure the payment of the principal of and interest on the Water and Sewer Revenue Bonds,
1994, Water and Sewer Revenue Bonds, 1997, Water and Sewer Revenue Refunding Bonds,
2002 and any bonds which may be issued after this date on a parity with the Bonds. The City
has reserved the right to issue such parity bonds on terms and conditions set forth in the Bond
Ordinance.

        5.      Interest on the Bonds is excluded from gross income for purposes of federal
income taxation pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the
“Code”). The Bonds are not private activity bonds. Interest on the Bonds is not an item of tax
preference for purposes of the federal alternative minimum tax imposed on individuals or
corporations, but is taken into account in the computation of adjusted current earnings for
purposes of the corporate alternative minimum tax under Section 55 of the Code. The opinions
stated in this paragraph are subject to the condition that the City comply with all requirements of
the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest
thereon be, or continue to be, excluded from gross income for federal income tax purposes. The
City has covenanted to comply with all such requirements. Failure to comply with certain of
City of Longview, Washington
Seattle-Northwest Securities Corporation
September 23, 2004
Page 3



such requirements may cause interest on the Bonds to be included in gross income for federal
income tax purposes retroactive to the date of issuance of the Bonds.

       The City has designated the Bonds as “qualified tax-exempt obligations” under
Section 265(b)(3) of the Code.

      Except as stated herein we express no opinion regarding any federal, state or local tax
consequences arising with respect to ownership of the Bonds.

        This opinion is given as of the date hereof and we assume no obligation to update, revise
or supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention or any changes in law that may hereafter occur.

                                            Very truly yours,

                                            PRESTON GATES & ELLIS LLP


                                            By
                                                 Nancy M. Neraas
NMN:cf
K:\20513\00045\DG\DG__L209V
     Appendix C


Book-Entry Transfer System
                       T H E    D E P O S I T O R Y     TR U S T      C O M P A N Y



                               Sample Official Statement Language
                               Describing Book-Entry-Only Issuance
                (Prepared by DTC—bracketed material may be applicable only to certain issues)

    1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the
securities (the “Securities”). The Securities will be issued as fully registered securities registered in the
name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an
authorized representative of DTC. One fully registered Security certificate will be issued for [each issue
of] the Securities, [each] in the aggregate principal amount of such issue, and will be deposited with DTC.
[If, however, the aggregate principal amount of [any] issue exceeds $400 million, one certificate will be
issued with respect to each $400 million of principal amount and an additional certificate will be issued
with respect to any remaining principal amount of such issue.]

   2. DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds securities that its participants (“Participants”) deposit with DTC. DTC also facilitates
the settlement among Participants of securities transactions, such as transfers and pledges, in deposited
securities through electronic computerized book-entry changes in Participants’ accounts, thereby
eliminating the need for physical movement of securities certificates. Direct Participants include
securities brokers and dealers, banks, trust companies, clearing corporations, and certain other
organizations. DTC is owned by a number of its Direct Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities Dealers,
Inc. Access to the DTC system is also available to others, such as securities brokers and dealers, banks,
and trust companies that clear through or maintain a custodial relationship with a Direct Participant,
either directly or indirectly (“Indirect Participants”). The rules applicable to DTC and its Participants are
on file with the Securities and Exchange Commission.

   3. Purchases of Securities under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual
purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their
purchase, but Beneficial Owners are expected to receive written confirmations providing details of the
transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Securities are to be accomplished by entries made on the books of Participants acting on behalf of
Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests
in Securities, except in the event that use of the book-entry system for the Securities is discontinued.

   4. To facilitate subsequent transfers, all Securities deposited by Participants with DTC are registered
in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Securities with DTC and their registration in the name
of Cede & Co., or such other DTC nominee, do not effect any change in beneficial ownership. DTC has
no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of
the Direct Participants to whose accounts such Securities are credited, which may or may not be the
Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on
behalf of their customers.

   5. Conveyances of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial
Owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. [Beneficial Owners of Securities may wish to take
certain steps to augment the transmission to them of notices of significant events with respect to the
Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents.
Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their
benefit has agreed to obtain and transmit notices to Beneficial Owners, or in the alternative, Beneficial
Owners may wish to provide their names and addresses to the registrar and request that copies of notices
be provided directly to them.]

   [6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in
such issue to be redeemed.]

   7. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to
Securities. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after
the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct
Participants to whose accounts Securities are credited on the record date (identified in a listing attached
to the Omnibus Proxy).

   8. Principal and interest payments on the Securities will be made to Cede & Co., or such other
nominee as may be requested, by an authorized representative of DTC. DTC’s practice is to credit Direct
Participants’ accounts, upon DTC’s receipts of funds and corresponding detail information from Issuer or
Agent on payable date in accordance with their respective holdings shown on DTC’s records. Payments
by Participants to Beneficial Owners will be governed by standing instructions and customary practices,
as is the case with securities held for the accounts of customers in bearer form or registered in “street
name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject to any
statutory or regulatory requirements as may be in effect from time to time. Payment of principal and
interest to Cede & Co. (or such other nominee as may be requested by an authorized representative of
DTC) is the responsibility of Issuer or Agent, disbursement of such payments to Direct Participants shall
be the responsibility of DTC, and disbursement of such payments to Beneficial Owners shall be the
responsibility of Direct and Indirect Participants.

    [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through
its Participant, to [Tender/Remarketing] Agent, and shall effect delivery of such Securities by causing the
Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to
[Tender/Remarketing] Agent. The requirement for physical delivery of Securities in connection with an
optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the
Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of
tendered Securities to [Tender/Remarketing] Agent’s DTC account.]

   10. DTC may discontinue providing its services as securities depository with respect to the Securities
at any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a
successor securities depository is not obtained, Security certificates are required to be printed and
delivered.

  11. Issuer may decide to discontinue use of the system of book-entry transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered.

   12. The information in this section concerning DTC and DTC’s book-entry system has been obtained
from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the accuracy thereof.
      Appendix D


Audited Financial Statements
                                                                                                           Item 12A


                                        APPROVAL OF CLAIMS

Based upon the authentication and certification of claims and demands against
the City, prepared and signed by the City’s auditing officer, and in full reliance
thereon, it is moved and seconded as shown in the minutes of this meeting that
the following vouchers/warrants are approved for payment:

Voucher (warrant) totals for 1st Claims of September 2004: Total $441,342.71
-------------------------------------------------------------------------------------------------------------

                                    Pay Period: August 16-31, 2004

Payroll warrant numbers 188582 through 188734                                    Total $378,692.33

Payroll direct deposits                                                          Total $321,309.89

Payroll wire transfers                                                           Total $301,640.51

Total Payroll Amt                                                                      $1,001,642.73


-------------------------------------------------------------------------------------------------------------

                                      Pay Period: September 2004

Debt service payments electronically wired for September 2004:                             $97,760.31
                                                           Council Agenda Item No. 12B
                                                                     September 9, 2004

                            CLAIMS ACTIVITY

New Claims
                       Incident                                              Amount
     Claimant          Date       Incident Description                       Claimed
1.   Kim & Dean Taft   8/4/04     Claimants allege damage to their          Not specified
                                  parked vehicles when a large limb
                                  broke off a City tree.

2.   Robert Timmreck   8/4/04     Claimant alleges damage to his gutter     Not specified
                                  when a limb broke off a City tree.

3.   Karen Marrs       5/7/04     Claimant alleges vehicle damage as a           $930.18
                                  result of minor rear-end accident with
                                  Recreation van.

4.   Debbie Harden     8/5/04     Claimant alleges her parked vehicle       Not specified
                                  was damaged by a Fire Truck turning
                                  into Cowlitz County Fairgrounds.

5.   Vic Cianci        4/16/04    Claimant alleges out-of-pocket               $1,096.21
                                  expenses incurred to clear sewer line
                                  and clean up sewage spill.

6.   South Pacific     6/11/04    Claimant alleges out-of-pocket                 $684.12
     Restaurant                   expenses incurred to clear sewer line
                                  and clean up sewage spill.

Settled Claims
                       Incident                                              Amount
     Claimant          Date       Incident Description                        Paid
7.   Roy Walco         4/22/04    Claimant alleged out-of-pocket               $273.84
                                  expenses incurred to clear sewer line.

8.   Janet Mansfield   7/1/04     Claimant alleged personal injuries as a      $1,551.24
                                  result of trip-and-fall over uneven
                                  section of sidewalk.

9.   Karen Marrs       5/7/04     Claimant alleged vehicle damage as a           $930.18
                                  result of minor rear-end accident with
                                  Recreation van.


Denied Claims
                       Incident                                              Amount
     Claimant          Date       Incident Description                       Claimed
       None
                                                                                                    Item 12C




                                                                                     Memorandum
                                                                                           September 3, 2004



TO:                   Mr. Edwin R. Ivey, City Manager

FROM:                 Roy Hewson, City Engineer

REVIEWED BY:          Jeff Cameron, Public Works Director

SUBJECT:              Street Use Request No. S-04-22
                      Mark Morris Water Polo Team Car Wash

The Engineering Division has received a street use request for a car wash, scheduled for Saturday September
11, Saturday September 18, 2004 and Saturday September 25, 2004 from 8:00 a.m. to 4:00 p.m.

This request is sponsored by Mark Morris High School.

The request has been reviewed by the various City Departments and no concerns were expressed. We
recommend approval of this request.
                              AGENDA SUMMARY SHEET
                                    Business of the City Council
                                   City of Longview, Washington



SUBJECT TITLE:                                           Agenda Item:                  13A
Liquor License Application
                                                         Dept. of Origin:             Police

EXHIBITS:                                                For Agenda of:         September 9, 2004
Washington State Liquor Control Board
Notice of Liquor License Application                     Clearances:
                                                         Originator:        Alex Perez, Chief of Police

COUNCIL GOAL ADDRESSED:                                  City Atty Review Necessary?

                                                         Date/Initials of City Attorney:

PRESENTED BY:                                            Asst. City Manager:
Edwin R. Ivey, City Manager



SUMMARY STATEMENT:

Lui’s Panda Inn, Inc., Jian-xi Luo, Jing-wen Luo, and Shao-me Mok have requested a Liquor License from the
Washington State Liquor Control Board requesting to serve spirits, beer and/or wine in a restaurant/lounge
named Panda Inn Restaurant & Lounge. This restaurant will be located at 919 15th Ave, the former site of the
Pantry Restaurant.

Background checks have been performed on the location and the parties involve and the police department has
no concerns with either the applicants or the location.




Expenditure                         Amount                          Appropriation
Required:                           Budgeted                        Required


RECOMMENDED ACTION:
Motion as desired by Council.
                              AGENDA SUMMARY SHEET
                                    Business of the City Council
                                   City of Longview, Washington



SUBJECT TITLE:                                           Agenda Item:                   13B
Liquor License Application
Assumption                                               Dept. of Origin:             Police

EXHIBITS:                                                For Agenda of:         September 9, 2004
Washington State Liquor Control Board
Notice of Liquor License Application           for       Clearances:
assumption                                               Originator:        Alex Perez, Chief of Police

                                                         City Atty Review Necessary?
COUNCIL GOAL ADDRESSED:
                                                         Date/Initials of City Attorney:

PRESENTED BY:                                            Asst. City Manager:
Edwin R. Ivey, City Manager



SUMMARY STATEMENT:

Moon Ki Min, Hyun Mee Min, and MH & INA Corporations have applied for an assumption from the Store &
Deli at 447 Oregon Way for grocery store beer and wine sales. Background checks have been performed on the
location and the parties involved. The police department has no concerns with any of these applicants or the
location.




Expenditure                         Amount                          Appropriation
Required:                           Budgeted                        Required


RECOMMENDED ACTION:
Motion as desired by Council.
                               AGENDA SUMMARY SHEET
                                      Business of the City Council
                                     City of Longview, Washington


SUBJECT TITLE:                                              Agenda Item:                    14B
2005-2006 Preliminatry Budget outside agency
request presentations.                                      Dept. of Origin:              Finance

                                                            For Agenda of:          September 9, 2004
EXHIBITS:
Summary of Outside Agency Requests                          Clearances:
Copies of Agency Requests                                   Originator:                Bob Gregory

                                                            City Atty Review Necessary?
COUNCIL GOAL ADDRESSED:
                                                            Date/Initials of City Attorney:

PRESENTED BY:                                               Asst. City Manager:
Edwin R. Ivey, City Manager



SUMMARY STATEMENT:
As a part of the 2005-2006 budget process, Council had requested that citizens be given several opportunities to
provide input into the 2005-2006 budget. In June community agencies were advised that the City would take
applications for funding from the 2005-2006 biennial budget from outside agencies meeting certain criteria. A
letter was sent out to those agencies that had applied for financial support during the 2003-2004 budget process.
A press release was also issued on July 14, 2004, explaining the outside agency application and funding process
for the 2005-2006 budget cycle. The letter and press release advertised August 20th as the deadline for
submitting the applications. The letter also indicated that the agencies would have an opportunity to present
their requests to Council at their Sept 9 regular Council meeting.




RECOMMENDED ACTION:
No action is required. Council will consider outside agency requests at their October 9, 2004 budget workshop
for inclusion into the 2005/06 biennial budget.
                          New Business License Applications                       09/05/2004

A.B.T. DEVELOPMENT INC.                      VICTOR VERHASSELT

2809 LOUISIANA ST                            GENERAL CONTRACTOR

LONGVIEW WA 98632


A STAR IS BORN                               MELISSA NELSON

3924 PACIFIC WAY                             RENTAL OF YARD SIGNS

LONGVIEW WA 98632


A TOUCH ABOVE                                DONNA WILCOX

1660 DELAWARE ST                             MASSAGE THERAPY

LONGVIEW WA 98632


CASEY’S JANITORIAL                           BRYANT CASEY

112 LAPHAM RD                                JANITORIAL SERVICE

TOUTLE WA 98649


CHEHALA RICHARDSON                           CHEHALA RICHARDSON

1321 HEMLOCK ST                              HAIR STYLIST LEASING STATION

LONGVIEW WA 98632


COTTAGE CREATIONS                            KANDY EATON

1211 9TH AVE                                 SELLING CERAMICS FROM HOME

LONGVIEW WA 98632


CRAFTERS JUNCTION                            DALE KLEIN

2810 38TH AVE                                CRAFT SALES

LONGVIEW WA 98632


DAN VERRIER COMPUTER SERVICES                DANIEL VERRIER

188 WOODSIDE DR                              COMPUTER NETWORK SERVICES

LONGVIEW WA 98632


DELTA EDUCATION LLC                          GARY FACENTE

80 NORTHWEST BLVD                            RETAIL SALES OF BOOKS AND SUPPLIES

NASHUA NH 03063


DEX MEDIA WEST LLC                           GEORGE BURNETT

198 INVERNESS DR. WEST                       YELLOW PAGES ADVERTISING

ENGLEWOOD CO 80112


DMR ENTERPRISES                              DAVID RITZMAN

3169 GARFIELD ST                             QUIXTAR DISTRIBUTOR

LONGVIEW WA 98632
                            New Business License Applications                       09/05/2004

DYNALECTRIC COMPANY                            RANDY WAGNER

2904 SW FIRST AVE                              ELECTRICAL CONTRACTOR

PORTLAND OR 97201


ECOMONY PAINTERS                               WILBUR JONES

3149 GARFIELD ST                               PAINTING SERVICE

LONGVIEW WA 98632


ESE CORPORATION                                WES JOHNSON

11011 WALLER RD E                              GENERAL CONTRACTOR

TACOMA WA 98446


ESSENTIAL MEDICAL SUPPORT INC.                 ROBERT DOLAN

PO   BOX 40477                                 SALES AND SERVICE OF MEDICAL EQUIPMENT

BELLEVUE WA 98015


GARCIA JANITORIAL SERVICE                      PEDRO RIVERA

362 15TH AVE                                   JANITORIAL SERVICE

LONGVIEW WA 98632


HARRY REYNOLDS                                 HARRY REYNOLDS

248 28TH AVE                                   RETAIL SALES FROM HOME

LONGVIEW WA 98632


JAN’S EYE-DEE-EZ                               JANICE STAFFORD

1525 21ST AVE                                  SELLING ID BADGES AND RIBBON NECKLACES

LONGVIEW WA 98632


JOHN RICHARDS MD                               JOHN RICHARDS

605 BROADWAY ST                                INTERNAL MEDICINE PRACTICE

LONGVIEW WA 98632


NATION & SONS                                  TERRY NATION

1326 COMMERCE AVE                              ANTIQUE AND COLLECTIBLE SALES

LONGVIEW WA 98632


NYLUND HOMES INC.                              ROD NYLUND

14900 NE 271ST AVE                             GENERAL CONTRACTOR

BRUSH PRAIRIE WA 98606


OREGON HEATING & AC                            STAN STUPOR

1010 MAPLE ST                                  HVAC CONTRACTOR

DUNDEE OR 97115
                           New Business License Applications                          09/05/2004

PANDA INN                                     JONG LUO

919 15TH AVE                                  CHINESE RESTAURANT

LONGVIEW WA 98632


PATTY’S KETTLE CORN                           ROBERT PHILLIPS

133 CHERRINGTON RD                            KETTLE CORN SALES

CASTLE ROCK     WA 98611


PUMPTECH INC.                                 DOUG   DAVIDSON

12020 SE 32ND #2                              SALES AND SERVICE OF INDUSTRIAL PUMPS

BELLEVUE WA 98005


RICHARDS CONSTRUCTION INC.                    LONNIE RICHARDS

75265 MT VIEW                                 GENERAL CONTRACTOR

CLATSKANIE OR 97016


RK ELECTRIC LLC                               RICHARD KNUDTSON

1212 EDISON ST NE                             ELECTRICAL CONTRACTOR

OLYMPIA     WA 98506


SCOTT STONE’S LAWNMOWER                       SCOTT STONE

606 B 7TH AVE                                 SMALL ENGINE REPAIR

LONGVIEW WA 98632


SWEET & COZY HOME DAYCARE                     TRALANEA CRAWFORD

1921 ALABAMA ST                               IN HOME DAYCARE

LONGVIEW WA 98632


TAFT CONSTRUCTION                             DEAN TAFT

1821 OLYMPIA WAY                              GENERAL CONTRACTOR

LONGVIEW WA 98632


THE GROUNDS KEEKPER                           GREGG BUXTON

1207 N 13TH AVE                               YARD MAINTENANCE

KELSO WA 98626


TIERRA BUSBY, ATTORNEY AT LAW                 TIERRA BUSBY

2674 CYPRESS ST
                                              ATTORNEY
LONGVIEW WA 98632


TOUCH OF CLASS HOME DECOR                     DONNA ANDERSON

852 VANDERCOOK WAY                            SELLING HOME DECOR

LONGVIEW WA 98632
                        New Business License Applications          09/05/2004

TRITON’S ELECTRIC                          GEOFF SANCHEZ

2711 NW SUNSET CT.                         ELECTRICAL CONTRACTOR

CAMAS WA 98671


WILSON CARE ADULT FAMILY HOME              ROEN WILSON

3542 OCEAN BEACH HWY                       ADULT FOSTER HOME

LONGVIEW WA 98632
                                                                                       Item 15B


                     Downtown Advisory Committee Meeting
                                        July 9, 2004
                                  City Hall Training Room

Present:
Downtown Advisory Committee:
Wendy Kosloski, Ken Spring, Merle Munger, Ron Works, Mary Chilson, and Frank Gerloff
were present. Jeanne O’Connor was absent.

City of Longview:
Tom Baylis, John Bean, Roy Hewson, John Brickey, and Dave Spencer were present.

Chair Wendy Kosloski called the meeting to order at 8:05 a.m.

1. Approval of Minutes
Ken Spring made a motion to approve the minutes of the April 23, 2004 meeting, the
motion was seconded by Ron Works and passed on a unanimous vote.

2. Old Business
City staff requested time to update the committee on several items:

   A. Signage to prohibit bicycle riding on Commerce Ave. sidewalks.
   Tom Baylis reported that eight signs had been received recently. During a walk-thru of
   potential installation sites on Commerce, it was agreed by staff and the Downtowners that
   two signs each at the intersections of Hemlock, Hudson, Broadway, and Maple would
   work best, and that the signs should be angle mounted on the same traffic signal poles as
   the Cruising Control signs, one eastbound and one westbound. Everyone agreed that two
   more signs, one at or near each entrance to Downtown, would be ideal. Staff had also
   arranged to purchase two spare signs, so they were recommended for placement at
   Florida and across from the Columbia Theatre. City staff installed the signs before the
   July 4th holiday.

   B. Bicycle parking/storage in the public right-of-way..
   Tom Baylis reported that the Downtowners had recently approved the purchase of eight
   bike racks to be used in the D-C district for customer use, and to help control the use of
   bicycle parking on trees, light poles, and sign poles. The Downtowners have also
   requested that city staff install the bike racks.

   Tom reported that the Downtowners would have to submit a Right-of-Way application to
   the Public Works Dept. He also reported that staff had met once to discuss potential
   placement sites, and that they were considering placement on the west side of Commerce
   in the unused space between the first angled parking space and the corner. Staff will meet
   again to discuss the issue and keep the committee informed. He also indicated that staff
   had discussed crafting a proposed ordinance to coincide with installation of new bike
   racks that would prohibit their use for commercial purposes, and to prohibit the use of
   trees, signs, and poles for bike storage.
   C. Expansion of the Sidewalk Business License program.
   Tom Baylis reported that City Council adopted the “clean-up” ordinance at their June 24,
   2004 meeting. Staff is now taking applications for the entire D-C district, and can begin
   issuing licenses for the new areas beginning on July 25, 2004. Wendy Kosloski asked
   about one particular business, Scrap Happy, located at 1323 Hemlock, who would like to
   obtain a Sidewalk Business License and place a sandwich board sign in the grassy strip
   between the curb (no parking on that section of Hemlock) and the sidewalk. Both John
   Brickey and Dave Spencer agreed that would be an acceptable location.

   Wendy Kosloski wondered if the sidewalks can be broadly used for related activities
   during a Special Event/Street Closure such as the recent Bow Tie Bash Car Show. Dave
   Spencer gave a qualified yes, depending on the type of event being held.

   D. Brochure on Activity Permits in the Public Right-of-Way
   Tom Baylis briefly reported that staff is still updating the brochure, and that he will bring
   it back to the committee when completed.

3. New Business
    A. Potential Lighting Projects in the D-C district
    John Bean, the city’s Traffic Engineer, presented preliminary information for a potential
    demonstration streetlight project downtown, with the assistance of two overhead GIS
    photo diagrams to show existing pole locations and the actual existing electrical circuit
    layouts. He first gave some background on the original street lighting installation from
    the 1970’s and advised that the aging, inadequate conduit below the surface would need
    replacing.

   In his discussions with the lighting supplier who made a presentation to the Longview
   Downtowners this spring, John made some assumptions regarding pole configuration,
   those being that the pole should be configured to allow decorative banners and flower
   pots, and should have one or two AC accessory electrical outlets., Ken Spring suggested
   that it would make economic sense to accommodate two AC outlets for each pole in
   anticipation of additional future needs. John agreed that was sensible.

   John showed the layout of the three primary electrical circuits, and discussion followed
   regarding which circuit would be best suited for a preliminary project. Circuit 1, roughly
   covering the intersection of Commerce and Hudson and ½ block in all directions, would
   likely be the lowest cost circuit and seemed to make the most sense. It also would
   incorporate the mid-block pedestrian crosswalk in the 1300 block of Commerce, allowing
   for lighted bollards at the crosswalk as suggested by the lighting vendor, as well as four
   ornamental signal poles and five street lights.

   Upon a question regarding whether sidewalks would need to be demolished and replaced,
   John replied that it would be more practical to use a side boring process that provides for
   minimal disruption. Mary Chilson wondered if water supply pipes could be installed at




Downtown Advisory Committee Meeting          2                          Minutes of July 9, 2004
   that time in order to accommodate flower/tree bed watering, and John reported that would
   not be feasible in conjunction with the electrical conduit installation.

   Estimated costs per circuit for electrical upgrades and installation are approximately
   $36,000. The lighting vendor had not yet supplied John with material cost estimates, and
   John mentioned that obviously there are many variables surrounding which designs
   would be selected, but that a “ballpark” estimate of $80,000 to 100,000 per circuit would
   be realistic.

   As long as the lighting vendor provides material cost estimates, John will plan to make a
   presentation to the Longview Downtowners general membership at their August 12, 2004
   meeting. Following that, John will plan on making the same presentation to the DAC at
   the next meeting, currently scheduled for August 20, 2004.

   B. Adult entertainment in the D-C district
   Tom Baylis asked Dave Spencer to describe existing laws surrounding adult
   entertainment in Washington. He explained that local zoning code and state law
   determines what adult entertainment is and where it can be located. With regard to
   venues with nude/topless dancing etc., they have to be located in certain areas, but that
   the key is that a “significant” amount of revenue is derived by it. If adult entertainment is
   a small portion of their revenue stream (casinos, hotels) conducted on occasion, and if it
   is not the venue’s primary function, zoning code restrictions generally are not applicable.
   He described a key Supreme Court decision revolving around the City of Renton vs.
   Playland Shows to illustrate the difficulty that a community can have in attempting to
   restrict adult venues. In addition, the legal expenses are significant. The bottom line:
   cities cannot regulate adult entertainment out of existence, they can only restrict where
   such businesses can be located via zoning restrictions.

   He also explained that if adult entertainment activities or materials/photographs etc. are
   visible in public view (public sidewalk or alley), then the prosecuting attorney can take
   action. Based on complaints that he had received, Tom Baylis asked what the correct
   process would be for a citizen to make a complaint, and Dave Spencer advised that a
   citizen can submit a written complaint to the Longview Police Department for
   enforcement action.

   Ron Works observed that, with this issue, social pressure and economic/consumer action
   sets the pace for society.

   C. Signs with changeable copy installed in the D-C district
   John Brickey provided a handout and explained that Weyerhaeuser Credit Union had,
   through their sign vendor, made a request to replace an existing wall-mounted sign with
   electronic changeable copy at their drive-thru window lanes. The original sign can no
   longer be repaired, and they wanted to replace it and move it. Under the existing sign
   ordinance criteria in the D-C district, this type of sign is not allowed, so the request was
   denied. Weyerhaeuser Credit Union then submitted their request to the Appeal Board,
   and it was determined by the city attorney that they had no jurisdiction to hear the



Downtown Advisory Committee Meeting          3                          Minutes of July 9, 2004
   request. John then conveyed to Weyerhaeuser Credit Union that he would bring the
   matter to the attention of the Downtown Advisory Committee for review and
   recommendation. Upon a favorable recommendation by the committee, staff could then
   draft a proposed text amendment to expand D-C district sign provisions in an acceptable
   manner to all concerned. The Longview Planning Commission and the Longview City
   Council would then also have to approve any text amendments surrounding this issue.

   Upon a question by the committee, John explained that one remedy would be to expand
   the area where these types of signs are permitted. Ken Spring asked for some background
   on the city’s sign ordinance. The lengthy process and significant involvement of the DAC
   was briefly described, and John provided handouts that described the ordinances and
   specific issues. He also explained that he was not seeking action from the committee
   today, but wanted to present the issue and provide background in anticipation of a future
   recommendation on this matter. Frank Gerloff clarified that the credit union’s intention
   was to merely replace their sign, not change it, due to technology limitations. Merle
   Munger agreed with this assertion. Ron Works, as a member of the DAC when the sign
   ordinance was crafted, voiced his opinion that their intent was to be done with this type
   of sign as they deteriorated and became non-functional over time.

   John Brickey also clarified his family relationship with the president/CEO of the credit
   union so that the committee was aware of that relationship.

   It was decided that the committee would review and consider this matter, with the goal
   being to formulate a recommendation at their next meeting, tentatively scheduled for
   August 20, 2004.

4. Public Comment
There was no public comment.

Adjournment
With no further business to discuss, the July 9, 2004 meeting of the Downtown Advisory
Committee was adjourned at approximately 9:40 a.m.

TB:tb




Downtown Advisory Committee Meeting         4                         Minutes of July 9, 2004
                                                                                      Item 15C
                             Minutes of the July 15, 2004
                  Longview-Kelso Parks and Recreation Board Meeting

Members Present: Margaret Soderman, P.J. Enbusk, Buff Chambers, Carl Degner, and Ann
Brock

Members Absent: Scott Moultine, Mike Karnofski, Shelley Cosgrove, Jerry Phillips, and
Kirby McCoy

Kelso City Council Representative Present: Kathleen Johnson

Staff Present: Rich Bemm, Liz Davis, Dick Mueller, and Al George

Others Present: Paula Stoppler, Frances Weber, and Terry Reams

Without a quorum present, Chair, Margaret Soderman began the meeting to order at 7:05
p.m.

Approval of Minutes
Without a quorum present, the approval of the June board minutes was tabled.

Constituent Comments
Paula Stoppler, representing the Humane Society "Pet Trek" event distributed information
and gave a presentation about the history Pet Trek. She then requested permission to hold this
year’s Pet Trek at Tam O'Shanter Park in September and asked that they be allow to invite
"for-profit" vendors to sell their goods at the event. Ms. Stoppler asked for an exception to
the park policy which prohibits for-profit vendors in city parks. Kathleen Johnson suggested
they make a presentation to the Kelso City Council. The board felt the event had merit, but
opinions were mixed regarding the appropriateness of allowing the Humane Society to make
space available to for-profit vendors.

Frances Weber, a neighbor of Rotary Park on Burcham Street in Kelso, wanted to go on
record that she is opposed to the proposed skate park at that location. Rich said there are no
funds available for the project to move forward at this time however, he assured Ms. Weber
that a public meeting would take place prior to the project beginning.

Terry Reams, representing the Kelso Highlander Festival Committee addressed the board
regarding a permanent staging location for the dance competition. Mr. Reams said that a
portable stage was built with donated materials from the Weyerhaeuser Foundation. They
would like to install a cement slab (12' x 40') to place it on, noting the committee had the
funds to complete the project. Buff favored the project and supported its approval with the
understanding that a cover would be installed in the future. All board members present were
in favor of this project.

Board Member Comments

Margaret said she had received requests from two senior center members regarding several
issues. One issue was marking pickle ball courts at the Vandercook Park tennis courts. Rich
said this issued was discussed a few months ago by the Board and they were given
permission to paint lines at Rotary Park in Longview where the courts are used less than the
ones at Vandercook Park. The seniors would also like to offer more trips. Dick Mueller
responded by stating there is a new board at the Senior Center that wishes to change the
Operating Boards relationship with the city. Trips fall under the Park and Recreation
Department’s jurisdiction because they help to subsidize the cost of having a staff member at
the center.

Park board members indicated they would like a list of parks and their corresponding
addresses.

Reports
Park Maintenance
Al distributed his monthly report, noting that labor to repair vandalism was up in June. This
does not including the vandalism to Japanese Island which occurred in July. He said the grass
at Lake Sacajawea did not recover as expected after the Go 4th event therefore, the Go 4th
Committee will be looking at the possibility of restricting the placement of tarps on the
ground to times only after 5 pm.

He also said that the RA Long electrical project will begin on July 19th with donated labor
from Renaud Electric.

The new parks supervisor, Curt Nedved, will begin work on August 2nd, replacing Scott
Zlotnik.

Recreation
Dick Mueller distributed this written report and highlighted the Teen National Youth
Congress teen leadership program.

He also noted that the 21st Century program will use only academic components next year
and not recreation services.

Dick acknowledged the major sponsors for the summer concerts series as; Kirkpatrick
Family Care, Monticello Hotel and Northern Lights Bingo.

Director
Seniors at Council - Rich said that several seniors attended a recent Longview city council
meeting seeking support for a new facility. He noted the current buildings capacity is 385,
and their current membership is less than 375. The largest events are the lunches and
entertainment which draw between 25-50 seniors.

Columbia Theatre Tree Removal - A new marquee is being installed at the theatre and their
board is asking for several trees to be removed because they block the view. Rich suggested
that with some trimming, sight lines may be improved to the point that some of the trees may
not need to be removed. Al suggested that the trees be trimmed after the marquee is up. Staff
was concerned about setting a precedent if the trees were removed for the purpose of opening
up views for signage. Board members felt we should wait until autumn when the leaves fall
and the sign is up before making a decision.


Park Board Minutes                          2                                  July 15, 2004
New Playground Equipment at 7th Avenue Park - Rich said the playground equipment has
arrived and crews are scheduled to begin demolition of the current equipment on July 26th.

Barnes After School Program - Rich noted that 21st Century and 4H are currently sponsoring
a program at Barnes. Staff is suggesting moving our component of this program to Catlin
School to benefit more students. Discussion with the principal at Catlin School will
continue.

Tree Board
In addition to his written report, Al noted that many of the Thundercloud plum trees are
producing fruit this year. The crew will spray them in the future to prevent this occurrence.

Old Business
No old business was brought before the board.

New Business
No new business was brought before the board.

Adjournment
The meeting concluded at 8:35 p.m.

The next regular meeting will be held on Thursday, August 19th in Longview.

Submitted by:



Secretary to the Board




Park Board Minutes                           3                                 July 15, 2004
         Memorandum
         To:       Parks & Recreation Advisory Board
         CC:       Rich Bemm, Director, Parks & Recreation

         From:     A. L. George, Superintendent of Parks

         Date:     9/7/2004
         Re:       Board Report for period of June 4 through July 2


               •   Labor for vandalism for the period of June 4 through June 26 was $1,055.62. The two top
                   areas for vandalism during this period was Tam O’Shanter Park and Rotary Park Kelso.
                   This does not include the vandalism to the Japanese Garden on July 8, 2004.

               •   Donators for materials have been obtained and project to upgrade and extend electrical
                   system at R. A. Long Park will begin on Monday the 19th. This is the project that was
                   reported earlier that is being spearheaded and administered by the Christmas Lighting
                   Committee and Renaud Electric will do the installation. Our division will participate by
                   doing the trenching. In that way we can repair irrigation lines and electrical lines that
                   control the automatic irrigation system. This first phase will be to install the panels and lay
                   the conduit. Wire will be pulled later when funds are available.

               •   It has been a tough month preparing for the Fourth of July celebration. (The schedule that I
                   am providing are the tasks that we do in support of the event and in addition to the regular
                   daily maintenance of the parks)

               •   A special effort was made to fertilize and water the turf to get it in good condition before the
                   event. However, tarps destroyed our efforts by cooking the green grass on the day of the
                   fourth. (Pictures available)

               •   Routine maintenance of all areas

               •   Once again, Lake Sacajawea won the “Readers Choice Award” as the “Best Local Park”.

               •   Set up for the “Concerts in the Park” was completed.

               •   Bleachers were loaned, repaired and delivered to LCC for the World Series next month.

               •   Swanson’s Fuel donated bark mulch for the Tennant Way Longview sign. We sprayed for
                   weeds, they weed whipped them down after they had absorbed the chemical and applied the
                   mulch with their blower truck.

               •   A new supervisor, Curt Medved, has accepted our offer of employment. He will be re-
                   locating from Phoenix, Arizona and reporting for work on July 30th.




                                               TREE REPORT

Park Board Minutes                                    4                                         July 15, 2004
             •   The Thundercloud plum trees have presented a severe problem this year. A huge number of
                 trees have reverted from ornamental to fruit bearing trees. At least 50% of our citizen
                 requests have been broken limbs, or limbs hanging extremely low. (Pictures will be
                 available at the meeting.) Chipping branches that are loaded with fruit are clogging the
                 machine which has to be cleaned after pruning approximately three trees. Since there are
                 approximately 1600 plum trees and small staff, we are unable to check each tree for fruiting.
                 We will have to anticipate fruiting next year and spray to prevent fruiting next year, if
                 weather allows.

             •   Pruned 209 trees

             •   Removed 9 trees

             •   Removed one stump

             •   One limb failure of an elm caused major damage to vehicle. (Pictures available at the
                 meeting.)




Park Board Minutes                                 5                                        July 15, 2004
Date:           July 12, 2004

To:             Richard Bemm, Director of Parks and Recreation

From:           Dick Mueller, Recreation Superintendent

Subject:        June 2004 Recreation Program & Facility Report

Discover the Benefits of Parks & Recreation
• Experience Recreation for Life! We serve the community with quality opportunities to
   play, learn, and grow.
• Parks & recreation services support economic development. Recreation programs and
   facilities attract and retain businesses and residents, as well as attract tourists. Parks and
   recreation provides jobs and generates income for the community and for local
   businesses.
• “Jake’s parents took his TV time away. Punishment or prize? Good health and
   happiness starts at home – and in the more than half a million parks and recreation
   centers across the country. Parks are where kids learn to swim, hit a curve ball or head
   for on a beautiful day to enjoy life. Imagine life without them? So be active, volunteer,
   and support parks and recreation. Make an investment that improves your health and
   your happiness – for a lifetime. It starts in parks! Healthy Lifestyles, Livable
   Communities.” Source: National Recreation & Park Association.

Youth
• There were six youth enrichment classes during June with 92 children attending. New
   classes included several Kids in the Kitchen day camps.
• Surveys from Guitar class and Kids in the Kitchen classes reported that 100% learned &
   improved a new skill, 100% were satisfied with the class, 100% met people & developed
   relationships and 83% gained personal development & growth.
• One volunteer assisted with preschool youth programs and volunteered eight hours.
• The out of school “Super Hours” program was held at six elementary schools in June.
   School Site        Registered      Daily Average Monthly Attend       Staff/Youth Ratio
       Barnes                21              6             75                   1:3
       Kessler               50              25            399                  1:12
       Northlake             46              21            341                  1:11
       Robert Gray
           morning           136             33            523                  1:11
           afternoon         135             27            426                  1:13


Park Board Minutes                            6                                   July 15, 2004
        St. Helens            50             25             482                    1:12
        Wallace               228            66             750                    1:10

•   The canine club visited after school programs this month to present pet care and safety.
•   Three parents were involved in the out of school programs during the month. They
    assisted with planning, providing resources and helping at program sites.

Teen
• The National Youth Congress teen leadership program is a grant funded pilot program
   through the National & Washington Recreation & Park Associations. There are three
   components of this leadership program which are a youth forum, leadership training and
   volunteer internship/service. We held the NYC Town Hall Forum at the Red Lion Hotel
   with 90 young people attending. The established topics were night life, recreation
   opportunities and youth violence. Facilitators were from youth serving agencies and
   organizations around the county. Community volunteers donated 33 hours to help
   organize and facilitate the forum. The data collected will be sent to the National Youth
   Congress and made available to local community leaders.
• NYC forum Question - What do you hope will come about for youth in future months as
   a result of this Forum? “For parts of the community to change.” “That things will
   change.” “Better community.” “Everything we talked about will happen.” “Things that
   I wanted to improve will be taken into consideration or improved.” “Take care of the
   community.” “I will try to make my community a better place.” “No violence, safety,
   fun and more available things to do.” “Better hangouts.”
• Staff interviewed teens that applied for the NYC junior leader program. There were 17
   youth that applied and were selected for the junior leader program. They spent two days
   training with TRICS curriculum (trust, respect, integrity, consistency & self esteem).
   Fourteen of the teens spent a total of 196 hours training. Internships (volunteer service)
   will begin in July with placement at Catlin Center, Barnes School, Seaquest State Park,
   Longview Library, Youth Day Camps, Huntington School and Catlin Pool.
• Seven Junior Leaders gained job skills, learned leadership and earned job experienced as
   they recorded 70 hours to help plan and conduct youth programs.
• We sent six teenagers to Cispus on scholarships provided by Altrusa International of
   Cowltiz County, Farm Forestry and the Soil Conservation District. They spent one week
   learning leadership skills and about environmental education.
• Catlin Center is open after school and had 94 registered teenagers that attended 359
   times. This is an average daily attendance of 18 teens and a staff to participant ratio of
   1:9.
• Late Night was held four Friday nights at the YMCA with 157 registered teenagers
   attending 426 times. This is an average of 107 teens each night for a staff to participant
   ratio of 1:13.

21st Century Community Learning Centers
• In collaboration with the middle and junior high schools, we offered after school
    recreation programs to complement academic classes. The school year programs ended
    on June 10. The middle school, junior high schools and high schools do not have the
    grant funds in future years to offer the programs we have been conducting.



Park Board Minutes                           7                                 July 15, 2004
    School Site       Registered     Daily Average Monthly Attend          Staff/Youth Ratio
    Coweeman          26             22            177                            1:11
    Huntington        80             52            418                            1:26

Family Programs & Events
• There were six family classes with 38 participants attending. These are classes that a
  parent or caregiver and child attend together. The classes have a recreational or
  educational emphasis and provide quality time for children and their parent to be
  together. New family classes held this month were Half Notes Music Development and
  Letterboxing.
• We hosted the annual Juneteenth Celebration in collaboration with the Ethnic Support
  Council with approximately 100 people attending this cultural event held at the
  McClelland Center.
• Free fishing day was held at the lake with 40 people participating in this state wide event.
  We partnered with the Cowlitz Game and Anglers Club who provided five volunteers
  that donated a total of 20 hours to conduct the event.

Adult
• There were 18 adult classes held this month with 121 participants. New enrichment
  classes included natural skin blends, Pilates, outdoor photography and a history program
  at the historical museum.
• Three classes were randomly evaluated with 27 responses collected. The participants
  reported that 100% enjoyed their class & were satisfied, 100% said class met their
  expectations and 100% said the instructor was enthusiastic & made good use of time.
• CoRec softball began with 24 teams having 336 players held at Roy Morse Park. There
  are three divisions which are set up by playing and skill level.

Adults 55 & Over
• Special events included Strawberry Shortcake Social with 25 and Men’s Day serving 30
  people.
• Health and safety programs include a driving safety class that served 23, foot care having
  three and blood pressure checks with five. The driving class is made possible through a
  partnership with the American Association of Retired Persons. Peace Health provides the
  blood pressure clinic as a community service.
• There were three ongoing weekly programs this month serving 134 participants that
  attended 619 times. These programs included line dancing, bridge and woodcarving.
• Weekly entertainment and lunch programs served 55 people who attended 199 times on
  Tuesday and Thursday. Three different groups provided music entertainment during
  lunch.
• A van trip went to the Japanese Garden in Portland with 9 people. The monthly walk was
  at Seaquest Park with six people taking advantage of this fitness opportunity that is a
  partnership with Mt. Saint Helens Hiking Club.
• Volunteers donated 48 hours of time for programs at the Senior Center during the month.




Park Board Minutes                          8                                  July 15, 2004
Therapeutic (programs for developmentally disabled individuals)
• The “Saturday Night Social Club” was held on four Saturday evenings at Catlin Center
   with 102 registered participants attending 172 times. This program includes activities,
   games, snacks, music, contests, education and social interaction.
• Special Olympics continued the spring sports season at school and park locations. There
   were 15 athletes in swimming, seven participating in track and 10 in soccer. Our
   department sponsors the regional Special Olympics program. Only athletes that are
   advancing to state completions continued this month.
• Eighteen therapeutic volunteers donated 128 hours to programs and events during June.

Staff & Volunteers
• Thirteen aquatic staff members attended a total of 670 hours of training to prepare for the
   summer season programs at Catlin Pool.
• Eleven teen staff spent 48 total hours training in preparation for summer programs.
• Youth training provided 11 staff members summer training for a total of 81 total hours.
• Two staff members attended the Stan Rister Stadium, in Tam O’Shanter Park, dedication
   ceremony held at the Red Lion Hotel.
• We are involved in attending a Highlander Festival meeting to assist with the event and
   coordinate the park use.
• Staff attended two juvenile probation orientations to inform parents and youth offenders
   about the positive activities teens can get involved in to keep out of trouble. Staff
   presented a high school health class with information on summer programs and
   opportunities.
• Volunteers donated 307 hours at youth, teen, therapeutic and senior programs during the
   month.

Donations & Contributions
• Summer concert sponsors donated $18,000 in cash to pay all direct costs of the seven
  family summer concerts that have a cultural emphasis at Lake Sacajawea Park. The title
  sponsor is Kirkpatrick Family Care who donated $6,000. Major sponsors include The
  Monticello Restaurant, NCS with a $5,000 contribution and Northern Lights with a
  $7,000 donation to sponsor a nationally known A Capella entertainment group.
• The out of school programs received a donation of paint and craft supplies from two
  parents having a value of $50.
• At the Senior Center this month, the United Way funds paid $250 for entertainment in
   collaboration with the lunch program. Sterling Health Insurance provided the dessert and
   door prizes for the senior social having an estimated value of $100.

Facilities
• Day use rentals included five at Tam O’Shanter, two at Lake Sacajawea, and one at 7th
   Avenue.
• The Woman’s Club Building had eight nonprofit, one government and one private rental.
• McClelland Center use consisted of two nonprofit uses, three government and three
   private rentals.
• Youth sports organizations used park sport fields and recreation facilities 529 times.
• School programs used park fields and recreation facilities 28 times.



Park Board Minutes                          9                                 July 15, 2004
•   Adult sports programs rented park fields 74 times during the month. Recreation adult
    softball programs used fields 52 times.
•   There are 44 garden plots rented this season at the park property on 32nd Avenue.




Park Board Minutes                         10                                July 15, 2004
Park Board Minutes   11   July 15, 2004
                                                                                     Item 15C
                            Minutes of the August 19, 2004
                  Longview-Kelso Parks and Recreation Board Meeting

Members Present: Buff Chambers, Jerry Phillips, P.J. Enbusk, Carl Degner, Ann Brock and
Mike Karnofski

Members Absent: Margaret Soderman, Scott Moultine, Shelley Cosgrove, and Kirby
McCoy

Staff Present: Rich Bemm, Liz Davis, Dick Mueller, and Al George

Others Present: Kirby Kee

Without a quorum present, Vice-Chair, Buff Chambers began the meeting at 7:05 p.m.

Approval of Minutes
Without a quorum present, the approval of the June and July board minutes were tabled.

Constituent Comments
Kirby Kee, 2839 Magnolia asked that the Kwansan cherry tree in front of his residence be
removed and replaced because he felt it was ugly. Mr. Kee offered to pay for a replacement
tree. At Rich Bemm's suggestion for the newer board members, Al George explained the
conditions under which a tree may be removed. He also described the birch tree removal
program, which was approved by the city council and allows the city to remove birch trees if
the property owner is willing to pay the replacement cost. He said the departments removes
between 100-200 trees per year and is only able to replace less than 100 per year. Currently
there are 4,000 tree vacancies throughout the city. Al said he could not recommend the tree
be removed at this time as it is healthy.

Mr. Kee said there are three trees on his block that are dead and need to be removed. Mr.
George said he would have the city arborist inspect the trees in question and contact Mr. Kee
about how to handle his tree and the tree across the street from him.

Following the discussion, Ann Brock made a motion to defer to Al's option of inspecting his
tree and trimming accordingly or making the opportunity available to have the owner pay for
a replacement tree equal in value to the existing tree based on size. The motion died for lack
of a second.

Approval of Minutes
With a quorum now present, Jerry Phillips made a motion to approve the June and July
minutes as mailed. Carl Degner seconded the motion, which passed with a unanimous vote.

Board Member Comments
Buff commended the park crew for trimming the street trees near his residence on Larch,
saying they looked great.

Carl Degner said there is damage to the playground equipment at Vandercook Park that
needs attention due to sharp edges. Al said he would follow up on this information.
Mike Karnofski commented about the good summer concert series.

Reports
Park Maintenance
There were no questions of Al's written report. He added that the Japanese Garden should
reopen the first of September.

Recreation
Dick Mueller highlighted his written report noting over forty-five programs were offered
during July. He noted that Catlin pool attendance was down 10% from last year. 200 soccer
balls were collected for the WRPA soccer ball drive. Mr. Mueller then discussed the sport
league contracts an example of which was included in the board's packet.

Director
Gerhart Gardens Boat Launch Dredging Project - Rich said the rewritten shorelines permit
will be acted upon by city council at their August 26 meeting. The permit will allow for
dredging at the boat launch and across the river during the months of July and August. The
permit would be valid for a ten year period. Based on funding limits the immediate work
would be restricted to clearing the silt off of the boat ramp and at the base of the ramp.

Spray Park Project - Kelso city representatives will meet with Rotary members on August
30th to discuss funding options, arrive at a budget, and create a timeline for this project. The
approximate cost will be $150,000.

Tam O’Shanter Park Master Plan - Rich said that the project architect would like to meet
with the park board to finalize the plan. Members suggested meeting prior to the September
16th meeting. Rich will forward this suggestion to the Kelso city manager.

Tree Board
No other tree board business was discussed.

Old Business
No old business was brought before the board.

New Business
No new business was brought before the board.

Adjournment
The meeting concluded at 7:55 p.m.

The next regular meeting will be held on Thursday, September 16th in Kelso.

Submitted by:


Secretary to the Board



Park Board Minutes                            2                                August 19, 2004
Date:           August 12, 2004

To:             Richard Bemm, Director of Parks and Recreation

From:           Dick Mueller, Recreation Superintendent

Subject:        July Recreation Program & Facility Report

Discover the Benefits of Parks & Recreation
• Experience Recreation for Life! We serve the community with quality opportunities to
   play, learn, and grow.
• Parks & recreation services strengthen safety and security. Parks and recreation
   professionals provide safe environments for recreation activities and design programs and
   services specifically to reduce criminal activity.
• “Dave got off the couch a year ago. He hasn’t been back on it since. Want to enjoy life
   more? Stay healthy? Get in shape? It starts in parks. Public parks and recreation
   facilities are where to go to get fit, reduce chronic disease and have fun. Close to home
   or far away, American’s public parks are where people get healthy. So be active,
   volunteer, and support parks and recreation. Make an investment that improves your
   health and your happiness – for a lifetime. It starts in parks! Healthy Lifestyles, Livable
   Communities.” Source: National Recreation & Park Association.

Youth
• There were 45 youth enrichment classes during July which 450 children attended. New
   classes included day camps in guitar, crafts, decorating and voice lessons. We began a
   new “Start Smart Sports” program that emphasizes learning, participation and fair play.
• “Quick pace, good variety, kept kids interested” said parent Jeff Price of the “Start Smart
   Basketball” day camp program.
• Youth swim lessons were held for two sessions this month on weekdays. A session is
   two weeks long and there are five ability levels taught by certified or trained instructors.
   During July we had 149 children participate in the “Learn to Swim” program at Catlin
   Pool.
• The summer out of school “Super Hours” program was held at two elementary schools
   during July.
   School Site Registered Daily Average Monthly Attend                Staff/Youth Ratio
       Barnes         29    13                       256                     1:6
       Wallace        57    36                       649                     1:12
• One volunteer assisted with preschool youth programs and volunteered 43 hours.


Park Board Minutes                           3                               August 19, 2004
•   Evaluations showed that 100% of the parents that had children in the Co-Rec soccer
    camp “felt their child gained personal growth and development”.

Teen
• The National Youth Congress teen leadership program is grant funded through the
   National & Washington Recreation & Park Associations. There are three components of
   this teen leadership program. They are a youth forum, leadership training and volunteer
   internships/service. This month the teens collected 150 food items for the community
   food bank as part of their service projects.
• Sixteen NYC Junior Leaders gained leadership skills and earned job experienced as they
   recorded 631 hours in performing internships. Internships (volunteer service) are being
   performed by the junior leaders at Catlin Center, Barnes School, Seaquest State Park,
   Longview Library, Youth Day Camps, Huntington School and Catlin Pool.
• Catlin Center is open this summer on weekdays and had 94 registered teenagers that
   attended 432 times. This is an average daily attendance of 36 teens and a staff to
   participant ratio of 1:18. Special events included a casino night with 25 and an all night
   lock in having 37.
• The Catlin outdoor adventure program went to Wake Robin three times and had seven
   teenagers attend this learning experience.
• Late Night was held on five Friday nights at the YMCA with 157 registered teenagers
   attending 401 times. This is an average of 80 teens each night for a staff to participant
   ratio of 1:9.
• There were five educational classes serving 29 teens. These classes included babysitting
   certification, guitar and tennis lessons.
• Day trips went to a Mariners game with 12, and white water rafting with 11 participants.

21st Century Community Learning Centers
• In collaboration with the middle schools, we offered summer recreation programs to
    complement academic classes. The middle schools do not have the grant funds in the
    future to offer the programs we have been conducting.
    School Site         Registered    Daily Average Monthly Attend Staff/Youth Ratio
        Coweeman        42            24               195                     1:12
        Huntington 55                 17               135                     1:9

Family Programs & Events
• There were nine family classes with 54 participants attending. These are classes that a
  parent or caregiver and child attend together. The classes have a recreational or
  educational emphasis and provide quality time for children and their parent to be
  together. New family classes this month were the Tiny Tots day camps.
• “Met some new friends and made some beautiful crafts. Thank you!” said parent Karen
  Decoy about her daughter attending “Razzle Dazzle Decorating” class.
• Open public swimming was held at Catlin Pool on Monday through Saturday. There are
  three sessions offered a day for youth, teens, families and adults. In July we had a total
  attendance of 3,786 which is 419 less than in 2003. Scholarships are offered for youth
  that need financial assistance.
• Four Summer Concerts were held this month with 600 to 2,000 people attending each
  family musical performance. There were a total of 4,350 people that attended concerts in


Park Board Minutes                          4                               August 19, 2004
    July. These cultural musical performances included acapella, reggae, bluegrass and salsa
    entertainment. Major sponsors for the concerts are Kirkpatrick Family Care, Monticello
    Restaurant and Northern Lights.
•   The World Vision soccer ball collection drive is an effort through Washington Recreation
    & Park Association to collect used soccer balls and send them to Africa for children in
    need. We collected about 200 soccer balls during the month. The drop off locations
    were at the YMCA, Big 5 and Athletes Corner.

Adult
• There were 15 adult classes held in July with 97 participants. New enrichment classes
  were offered in outdoor photography and Pilates fitness.
• Co-Rec softball continued this month with 24 teams having 336 players held at Roy
  Morse Park. There are three divisions that play other teams in levels established by
  ability.

Adults 55 & Over
• A special ice cream social event was held with 25 participating.
• Health and safety programs include two driving safety classes that served 47, foot care
  having three and blood pressure checks with six. The driving class is made possible
  through a partnership with the American Association of Retired Persons. Peace Health
  provides the blood pressure clinic as a community service.
• There were three ongoing weekly programs this month serving 139 participants that
  attended 594 times. These programs included line dancing, bridge and woodcarving.
• Weekly entertainment and lunch programs served 55 people that attended 230 times on
  Tuesday and Thursday. Three different groups provided music entertainment during
  lunch.
• Van trips went to the Sternwheeler in Portland with 12 and a Mariners game with 11
  people.
• The monthly walk was at Trojan Park with six people taking advantage of this fitness
  opportunity which is a partnership with Mt. Saint Helens Hiking Club.
• Volunteers donated 62 hours of time for programs at the Senior Center during the month.

Therapeutic (programs for developmentally disabled individuals)
• The “Saturday Night Social Club” was held on five Saturday evenings at Catlin Center
   with 110 registered participants attending 217 times. This program includes activities,
   games, snacks, music, contests, education and social interaction.
• Special Olympics continued the summer sports season at school and park locations.
   There were 30 athletes in July playing softball. Our department sponsors the regional
   Special Olympics program.
• Therapeutic volunteers donated 56 hours to programs and events during July.

Staff & Volunteers
• Staff attended two juvenile probation orientations to inform parents and youth offenders
   about what positive activities teens can get involved in to keep out of trouble.
• Volunteers donated 792 hours at youth, teen, therapeutic and senior programs during the
   month.



Park Board Minutes                          5                              August 19, 2004
Donations & Contributions
• Summer concert sponsors donated $18,000 in cash to pay all direct costs of the seven
  family summer concerts with a cultural emphasis at Lake Sacajawea Park. The title
  sponsor is Kirkpatrick Family Care who donated $6,000. Major sponsors include The
  Monticello Restaurant, NCS with a $5,000 contribution and Northern Lights with a
  $7,000 donation to sponsor a nationally known A Capella entertainment group.
• At the Senior Center this month, the United Way funds paid $200 for entertainment in
  collaboration with the lunch program.

Facilities
• Day use rentals included eight at Tam O’Shanter, 17 at Lake Sacajawea, and one at 7th
   Avenue.
• The Woman’s Club Building had eight nonprofit uses.
• McClelland Center use consisted of three government and five private rentals.
• Youth sports organizations used park sport fields and recreation facilities 525 times.
• School programs used park fields and recreation facilities 36 times.
• Adult sports programs rented park fields 44 times during the month. Recreation adult
   softball programs used fields 40 times.
• There are 44 garden plots rented this season at the park property on 32nd Avenue.




Park Board Minutes                         6                              August 19, 2004
Park Board Minutes   7   August 19, 2004
         Memorandum
         To:       Parks & Recreation Advisory Board
         CC:       Rich Bemm, Director, Parks & Recreation

         From:     A. L. George, Superintendent of Parks

         Date:     9/7/2004
         Re:       Board Report for period of July 3 through August 6, 2004


               •   Labor for vandalism for the period was 65.5 hours for the amount of $1,716.41.

               •   Routine maintenance for this time of year.

               •   First phase of the electrical upgrade at R. A. Long has been completed. (Conduit for new
                   lines is in the ground and turf areas repaired and seeded.)

               •   Completed our first attempt at “Doggy Drinking Fountain”.

               •   Finished Repair of bleachers and delivered to L.C.C. for the World Series.

               •   Began Repair work on the vandalism in the Japanese Garden. Second vandalism
                   discovered.

               •   Installed new concrete pad for donated bench and installed the bench on the Kessler side of
                   the lake just south of Hemlock.

               •   Fourth of July cleanup completed, besides litter, all materials such as signs, bleachers,
                   impact fencing, banners and logs from Timbersports etc. had to be removed and stored.

               •   Pedestrian flow fence replaced at Lads N Lassies park.

               •   Contract for installing new concrete pad for the dance floor at Tam O’Shanter Park was
                   awarded to Brown Construction.

               •   Continued work on all irrigation systems with limited coverage at Lake Sacajawea.
                   Attempting to keep the areas utilized for Concert in the Park as green as possible.




Park Board Minutes                                   8                                      August 19, 2004
                                                    TREE REPORT
             •   Pruned 306 trees

             •   Removed 10 trees

             •   Stump grinding has begun.

             •   Pesticide application to 6 trees

             •   Suckered 4 trees.

             •   As mentioned at the last meeting, we continue to have a severe year for limbs breaking.
                 Emergency call outs have been more in the last two months than the total for the last two
                 years. (estimate) A combination of a warmer year, drought conditions, rain and wind have
                 all contributed to the problem.




Park Board Minutes                                   9                                 August 19, 2004

				
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