Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90Seattle City Light 2015 Annual Report 67 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 - 67 - damages, and attorneys’ fees. Trial is currently scheduled for May 3, 2016, in King County Superior Court. The Department’s ultimate liability is indeterminate. Gomez v. City; King County – This case stems from a single vehicle/Department power pole collision that took place on November 11, 2012. The driver of the vehicle is believed to have been racing another vehicle. The driver of the vehicle that hit the pole died as a result of the collision. There were five passengers in this vehicle and they were all minors. One died as a result of the collision. The other four passengers were also injured but the Department has not received notice of the filing of a lawsuit against the City on their behalf as of the end of March 2016. There are three pending lawsuits arising out of the incident. The first lawsuit was filed on behalf of the estate of a deceased passenger and an injured passenger. The second lawsuit was brought by the parents of the deceased passenger but raising an additional cause of action under RCW 4.24.010 “Action for injury or death of a child.” The third lawsuit was brought on behalf of the estate of the deceased driver and his parents, bringing both wrongful death claims as well as claims under RCW 4.24.010. The Department’s ultimate liability is indeterminate. Centralia Steam Plant Project Asbestos Claims – In 2013, the Department received notice of a lawsuit that had been filed against PacifiCorp (the successor in interest of the former operator of the Centralia Steam Plant Project) by an employee of a contractor who worked at the Project between April 26, 1971 and December 3, 1971. The claimant alleges he developed mesothelioma as a result of his exposure to asbestos during the time he worked at the Project. PacifiCorp provided notice to the Department, and all the other former owners of the Project that, as a former owner of the Project, it could liable for any liabilities resulting from the construction not covered by insurance in proportion to its ownership share. Based on the agreement for the construction and ownership of the Project, the Department owned 8% of the Project during the material times. Recently, the Department received additional notice indicating there are two additional decedent estates have filed lawsuits against the former operator alleging similar claims. The Department is not named in any of the litigation and trial dates for these cases against the former operator are set for various times in 2016. The Department’s ultimate liability is indeterminate. Other Contingencies—In addition to those noted above, in the normal course of business, the Department has various other legal claims and contingent matters outstanding. The Department believes that any ultimate liability arising from these actions will not have a material adverse impact on the Department’s financial position, operations, or cash flows. 19. SUBSEQUENT EVENTS 2016 Bonds – On January 28, 2016, the Department issued $31.9 million Municipal Light and Power (ML&P) Revenue Bonds, 2016A, Taxable New Clean Renewable Energy Bonds (CREBS), and $116.9 ML&P Refunding Revenue Bonds, 2016B. The 2016A Bonds will finance certain capital improvements to and conservation programs consisting of overhaul of the Hydroelectric Generating Units 31 and 32 at the Department’s Diablo Powerhouse within the Skagit Project. The 2016B Bonds were issued to refund certain 2008 Serial and Term bonds totaling $122.8 million. The arbitrage yield was 1.009% for the CREBS and 1.881% for the 2016B Bonds. GM and CEO – Larry Weis was nominated General Manager and Chief Executive Officer and joined the Department on February 1, 2016. The City Council confirmed Mr. Weis in March 2016 to a 4 year term. Mr. Weis began his career at Snohomish County PUD, previously served as General Manager at Pend Oreille PUD, and later Turlock Irrigation District in California. Most recently, Mr. Weis served as General Manager of Austin Energy beginning in 2010. Mr. Weis holds a Bachelor of Science degree in Electrical and Mechanical Technology from Western Washington University.