Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 74 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 74 - operator were set for various times in 2016. The Department’s ultimate liability is indeterminate. In August 2016, the Department received notice from the former operator, who was a defendant in all three lawsuits, that all three lawsuits had been resolved. The first lawsuit involving Estate of Thomas Murphy, was settled and the agreed order of dismissal was entered on May 11, 2016. The second involving the Estate of Gary Cameron was dismissed on summary judgment on June 30, 2016. The final matter, involving Marvin Coleman, was voluntarily dismissed by the plaintiff on July 29, 2016. Central Puget Sound Regional Transit Authority Condemnation Cases – The Department is involved in four separate condemnation actions brought by the Central Puget Sound Regional Transit Authority (“Sound Transit”) involving the Department’s Eastside Transmission Corridor as it travels through Bellevue, Washington along 124th Avenue across four adjacent properties. The Department has contested Sound Transit’s ability to condemn publicly owned property, but on December 20, 2016, a trial court entered an order denying the Department’s motion contesting Sound Transit’s Authority to condemn public property and simultaneously entered an order finding public use and necessity over portions of the Department’s easement area. The Department appealed the decision to the Court of Appeal on December 21, 2016. On December 28, 2016, the Department also filed a motion for reconsideration of a portion of the trial court order, which was granted, but the trial court is waiting for permission from the Court of Appeals to enter its revised order. In the event the appeal is unsuccessful, the value of the land sought to be condemned by Sound Transit from the Department is significant, but indeterminate. Taylor, et al. v. City – Four plaintiffs allege that certain Department managers retaliated and discriminated against them on the basis of age, race, gender, and sexual orientation. The Department managers deny all allegations of discrimination, harassment, and retaliation. An adverse result in litigation could result in awards of back pay, compensatory damages, and attorneys’ fees. Trial is currently scheduled for April 17, 2017, in King County Superior Court. The Department’s ultimate liability is indeterminate. Gamble v. City – A Department employee contends that the Department has failed properly to accommodate her disability. An adverse result in litigation could result in awards of back pay, compensatory damages, and attorneys’ fees. Trial is currently scheduled to begin in King County Superior Court on April 3, 2017. 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. 20. SUBSEQUENT EVENTS 2017 Bonds – On January 27, 2017, the Department issued $50.0 million Municipal Light and Power (ML&P) Revenue Bonds, Series 2017A (Multi-Modal), and $50.0 million Municipal Light and Power (ML&P) Revenue Bonds, Series 2017B (Multi-Modal), collectively, the “Bonds”. The 2017 Bonds will finance certain capital improvements to and conservation programs. Major projects supported by the 2017 Bonds include generator rebuilds, existing network upgrades, relocating electrical service to accommodate transportation projects, advanced metering infrastructure, and construction of the new Denny substation. Average interest coupon rates for the 2017 Bonds were 4.0% and the arbitrage yield was 4.03%. Toshiba Corporation Contract – The Department has a $40.0 million contract with Toshiba International Corporation (Toshiba) to overhaul, fabricate, and install two transformers and two generating units (units 55 and 56, respectively) at the Boundary Project. To date, $35.0 million of this contract has been earned