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HomeMy WebLinkAbout2022.05.16 Council Meeting Packet AGENDA City Council Regular Meeting 7:00 PM - Monday, May 16, 2022 City Council Chambers & GoToWebinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco-wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this meeting. To listen to the meeting via phone, call (631) 992-3211 and use access code 613-585-088. City Council meetings are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco- wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Council members or the public, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. 6 - 20 (a) Approval of Meeting Minutes To approve the minutes of the Pasco City Council Regular Meeting and Regular Workshop held on May 2, 2022 and May 9, 2022 respectively. 21 - 23 (b) Bills and Communications Page 1 of 297 To approve claims in the total amount of $4,744,145.74 ($2,540,738.07 in Check Nos. 248217-248485; $1,260,950.56 in Electronic Transfer Nos. 835632, 835638, 835641, 835686-835688, 835758; $17,859.84 in Check Nos. 53891-53908; $923,627.70 in Electronic Transfer Nos. 30174725-30175276; $223.86 in Electronic Transfer Nos.878-879; $745.71 in Electronic Transfers Nos. 164-166). To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General Accounts, Miscellaneous Accounts, and Municipal Court (non- criminal, criminal, and parking) accounts receivable in the total amount of $178,802.72 and, of that amount, authorize $0.00 to be turned over for collection. 24 - 27 (c) Resolution - Council Goals for 2022-2023 To approve Resolution No. 4182, establishing primary Council Goals for the ensuing calendar years of 2022-2023. 28 - 39 (d) Resolution - Process Water Reuse Facility (PWRF): Beus Release of Interest Agreement To approve Resolution No. 4183, authorizing the City Manager to sign and execute the Process Water Reuse Facility Agreement with Don and Quella Beus and Beus Farms, Inc. for the release of interest in the United States Bureau of Reclamation Parcel No. 113080058. (RC) MOTION: I move to approve the Consent Agenda as read. 5. PROCLAMATIONS AND ACKNOWLEDGEMENTS 40 - 42 (a) Presentation of Proclamation for Public Works Week Mayor Barajas will read and then present the proclamation to Dustin Wittman, Project Support Specialist from the Pasco Public Works Department. 6. VISITORS - OTHER THAN AGENDA ITEMS - This item is provided to allow citizens the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an i mmediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. 7. REPORTS FROM COMMITTEES AND/OR OFFICERS Page 2 of 297 (a) Verbal Reports from Councilmembers 8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 43 - 49 (a) Resolution - Regional Pavement Cut Policy MOTION: I move to approve Resolution No. 4165, adopting the Regional Pavement Cut Policy and Revision to Pasco's Design and Construction Standards and Specifications for Public Works Improvements. 50 - 53 (b) *Resolution - Fourth Amendment to NW Baseball Ventures I, LLC for GESA Stadium Lease MOTION: I move to approve Resolution No. 4184, authorizing the City Manager to execute Amendment No. 4 to the term of the GESA Stadium Lease with the Northwest (NW) Baseball Ventures I, LLC. 54 - 66 (c) *Resolution - Purchase and Sale Agreement - Heritage Boulevard Property MOTION: I move to approve Resolution No. 4185, authorizing the sale of property located at Heritage Boulevard, Pasco, Washington and, further, authorize the City Manager to execute the associated closing documents. 67 - 76 (d) *Resolution - Setting a Public Hearing Date to consider the East Lewis Place ROW Vacation (VAC 2022-003) MOTION: I move to approve Resolution No. 4186, setting 7:00 P.M., Monday, June 6, 2022 as the time and date to conduct a public hearing to consider vacating right-of-way for East Lewis Place formerly primary State Highway No. 3, Pasco to Attalia. 10. UNFINISHED BUSINESS 77 - 95 (a) East UGA Sewer Local Improvement District (LID) Expansion Assessment Alternatives 11. NEW BUSINESS 96 - 291 (a) *Resolution - Process Water Reuse Facility (PWRF) + Renewable Natural Gas (RNG) Request for Proposals (RFP) – Ratification of Selected Respondent Page 3 of 297 MOTION: I move to approve Resolution No. 4187, related to the Process Water Reuse Facility to Renewable Natural Gas Request for Proposals and which includes the following items: Ratification of the following items: 1. Publication of notices (RFP) on March 17 and March 24, 2022. 2. The evaluation criteria within the RFP is appropriate for the subject project. 3. The two proposals received are considered qualified and responsive. And approval for staff to conduct a 'bidder's conference' to: 1. Assure respondents have a full understanding of the proposals. 2. Make respondents aware of any changes in the RFP. 3. Allow respondents a reasonable opportunity to revise their proposals for the purpose of obtaining the best and final proposals. And to begin negotiations of a contract with the selected respondent whose proposal it determines to be the most advantageous to the City. 12. MISCELLANEOUS DISCUSSION 13. EXECUTIVE SESSION 14. ADJOURNMENT 15. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 292 - 297 (b) Adopted 2020-2021 Council Goals (Reference Only) (c) REMINDERS • Monday, May 16, 6:00 PM: LEOFF Disability Board – City Hall Conference Room 1, Pasco City Hall (MAYOR BLANCH BARAJAS, Rep.; MAYOR PRO TEM CRAIG MALONEY, Alt.) • Tuesday, May 17, 4:00 PM: Pasco Public Facilities District Board Meeting – Council Chambers, Pasco City Hall (MAYOR PRO TEM CRAIG MALONEY, Rep.; COUNCILMEMBER NIKKI TORRES, Alt.) • Thursday, May 19, 12:30 PM: Greater Columbia Accountable Community Health Leadership Council & Board Meeting – Tri-Cities Community Health Board Room, Page 4 of 297 800 W. Court St.(COUNCILMEMBER ZAHRA ROACH, Rep.; COUNCILMEMBER NIKKI TORRES, Alt.) • Thursday, May 19, 4:00 PM: Downtown Pasco Development Authority – DPDA (COUNCILMEMBER NIKKI TORRES, Rep.; MAYOR PRO TEM CRAIG MALONEY. Alt.) • Friday, May 20, 10:00 AM: Benton-Franklin Council of Governments Board Meeting – Ben-Franklin Transit, 1000 Columbia Park Trail, Richland (COUNCILMEMBER NIKKI TORRES, Rep., COUNCILMEMBER JOSEPH CAMPOS, Alt.) • Monday, May 23, 4:00 PM: Hanford Area Economic Investment Fund Advisory Committee Meeting – Ben Franklin Transit Main Conference Room (COUNCILMEMBER PETE SERRANO, Rep.) This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días antes para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 5 of 297 AGENDA REPORT FOR: City Council May 11, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Debra Barham, City Clerk Administrative & Community Services SUBJECT: Approval of Meeting Minutes I. REFERENCE(S): 05.02.2022 & 05.09.2022 Draft Council Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Regular Meeting and Regular Workshop held on May 2, 2022 and May 9, 2022 respectively. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 297 MINUTES City Council Regular Meeting 7:00 PM - Monday, May 2, 2022 City Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor. ROLL CALL Councilmembers present: Blanche Barajas, Craig Maloney, Joseph Campos, Pete Serrano, Nikki Torres, David Milne, and Zahra Roach Councilmembers absent: None Staff present: Dave Zabell, City Manager; Adam Lincoln, Deputy City Manager; Colleen Chapin, Human Resources Director; Craig Briggs, Assistant City Attorney; Ed Dunbar, Deputy Fire Chief; Zach Ratkai, Administrative & Community Services Director; Ken Roske, Police Chief; Darcy Buckley, Finance Manager; Rick White, Community & Economic Development Director; Steve Worley, Public Works Director; and Debby Barham, City Clerk. The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA Approval of Meeting Minutes To approve the minutes of the Pasco City Council Regular Meeting held on April 18, 2022 and, Special Meeting & Regular Workshop held on April 25, 2022. Bills and Communications To approve claims in the total amount of $6,111,972.84 ($5,030,352.45 in Check Nos. 247947-248216; $153,140.35 in Electronic Transfer Nos. 835152-835171, 835185-835199, 835202-835210, 835222-835337, 835349-835418, 835420- 835496, 835501-835537, 835541-835560, 835564, 835601-835628; $14,874.94 in Check Nos. 53879-53890; $913,605.10 in Electronic Transfer Nos. 3174180- 30174724). Page 1 of 9Page 7 of 297 Ordinance & Resolution - Budget Amendment & Argent Road Phase 2 Bid Award To adopt Ordinance No. 4588, amending the 2021-2022 Mid-Biennial Budget (Ordinance No. 4560) OF the City of Pasco, Washington, by providing supplement thereto; to provide additional appropriation in the City's General Construction Fund for the construction of the Argent Road Improvements Phase 2 project. To approve Resolution No. 4172, awarding Bid No. 20011 for the Argent Road Improvements, Phase 2 project, to Ellison Earthworks, LLC. of Richland, Washington, and further, authorize the City Manager to ex ecute the contract documents. Resolution - Process Water Reuse Facility (PWRF) Phase 2 Amendment with RH2 To approve Resolution No. 4173, authorizing the City Manager to sign and execute an Amendment for the Professional Services Agreement (PSA) with RH2 Engineering for the Process Water Reuse Facility (PWRF) Pretreatment Improvements Phase 2: Winter Storage Capacity. Resolution - Intent to Form a Sewer Local Improvement District (LID) in the East UGA Area To approve Resolution No. 4174, declaring its intent to order the improvements of the East Urban Growth Area Expansion (Sewer Mains from Road 68 to North Glade Road, Glade Road Lift Station, Force Main, and Sewer Main to the existing gravity sewer system in the Foster Wells Road/Industrial Way area) and to create a Local Improvement District (LID) to assess the cost and expense of carrying out those improvements against the property specially benefitted thereby; notifying all persons who desire to object to the improvements to appear and present th eir objections at a hearing before the City Council to be held on May 23, 2022; and providing for other properly related matters. Resolution - Setting a Public Hearing Date to consider the Barker Ranch ROW Vacation (VAC 2022-002) To approve Resolution No. 4175, setting 7:00 P.M., Monday, June 6, 2022 as the time and date to conduct a public hearing to consider vacating a 10 -foot right-of- way for Burns Road established per Short Plat 2020-22. Resolution - Bid Award for Fire Station No. 85 Street & Utilities Work To approve Resolution No. 4176, awarding the Fire Station No. 85 site work with C & E Trenching LLC, and further, authorize the City Manager to execute the contract documents. Page 2 of 9Page 8 of 297 MOTION: Councilmember Campos moved, seconded by Councilmember Torres to approve the Consent Agenda as read. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach PROCLAMATIONS AND ACKNOWLEDGEMENTS Proclaiming May 2022 as "Asian American and Pacific Islander Heritage Month" Pasco Arts & Culture Commission Staff Liaison Angela Pashon introduced Onie Huihui Rendall, Director of Halau Kamakahiwaokalani. Ms. Huihui Rendall provided a brief presentation on Hawaiian culture, announced the annual Hawaiian culture related events held in the Tri-Cities area, and concluded with a live dance demonstration. Mayor Barajas read the proclamation proclaiming May 2022 as, "Asian American and Pacific Islander Heritage Month" in Pasco, Washington and presented it to Ms. Rendall and the dance team. VISITORS - OTHER THAN AGENDA ITEMS Mr. Leo Morales, Havana Café owner, stated that he has not heard back from City staff in the past two weeks related to permitting and a public records request. He stated that he feels targeted by City staff; he has only been reopened for three weeks and h as been accused of running a nightclub in his restaurant and he asked for the definition of a nightclub. He submitted a record of his sales at Havana Café from April 3 to May 2, 2022, to City Clerk Barham before the meeting began. Mr. Carl Holder, Richland resident and downtown Pasco property owner, expressed concerns about the treatment he has heard about of Havana Cafe, Amor a Mexico, and Tipsy Tavern; issues behind his business in the alley have not been addressed by City officials; and about a General Vacant Lot Notice he received from the City. Ms. Lillian Lehrman, a 4th grader at Ruth Livingston Elementary School, expressed appreciation for the Asian American & Pacific Islander (AAPI) presentation and proclamation. Mr. Scott Lehrman, Pasco resident, expressed appreciation for the AAPI proclamation and presentation and encouraged the City to continue to celebrate the diversity of its population. Page 3 of 9Page 9 of 297 Mr. Gabriel Portugal, Pasco resident, announced the upcoming Cinco de Mayo events scheduled from May 2 through May 7, 2022. Ms. Kim Lehrman, Pasco resident, commented on the AAPI proclamation, the upcoming Cinco de Mayo, and recommended that the City advertise future demonstrations on a broader base to bring in a larger audience. Mr. Damien Davis, Franklin County Historic Museum Executive Director, introduced Mario Quintero, owner of Brother's Cheese Steaks, who operates out of the Pasco Specialty Kitchen. He stated that kitchen is highly underutilized and he encouraged more start up businesses to use it. He also noted that the kitchen and it equipment is aging and needs to be updated. Mr. Mario Quintero, Brother's Cheese Steaks business, stated that he would like to remain in downtown Pasco when his business out grows the Pasco Specialty Kitchen. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Mr. Serrano, stated that while shopping at Walmart during the weekend, he met two Pasco Police Officers who were at Walmart to promote the Drug Take Back Program. Mayor Pro Tem Maloney, reported that it appears that the Pasco Public Facilities District Ballot Proposition No. 1 "Aquatic Facility and Competition Pool" was passed by the PPFD voters. Franklin County Elections Office will certify the election in early May 2022. Ms. Torres, commented on the Pasco Chamber of Commerce meeting she recently attended. Mr. Campos commented on the HAPO Center meeting he recently attended on behalf of Mayor Pro Tem Maloney. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO Public Meeting & Resolution - Accepting a Notice of Intent to Commence Annexation Proceedings for Eickmeyer-Roundy Annexation (ANX 2022-002) Mr. Briggs announced that the accepting a notice of intent to commence annexation proceedings for Eickmeyer-Roundy Annexation request was a quasi-judicial action and he read the quasi-judicial procedure, including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. Page 4 of 9Page 10 of 297 Mr. Serrano and Mr. Campos disclosed that they know members of the Roundy family; however, both felt they could be fair and impartial with this item. Next, Mr. Briggs asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. White provided a brief report on the request to annex property into the City from two property owners. Mayor Barajas declared the Public Meeting open to consider the proposed annexation. Following three calls for comments, and there being none, Mayor Barajas declared the Public Meeting closed. MOTION: Councilmember Campos moved, seconded by Councilmember Serrano to approve Resolution No. 4177, accepting a notice of intent to commence annexation proceedings for the the Eickmeyer-Roundy annexation, providing a determination on the boundary to be annexed, and whether simultaneous zoning and the assumption of bonded indebtedness will be required. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach Public Hearing and Ordinance - Vacating the North-South Alley of Block 2, Kurtzman’s 1st Addition to Pasco (VAC 2022-001) Mayor Barajas announced that the public hearing and ordinance vacating the North-South Alley of Block 2, Kurtzman’s 1st Addition to Pasco was a quasi-judicial action and asked Mr. Briggs to explain the procedure for quasi-judicial items. Mr. Briggs read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. Mayor Pro Tem Maloney stated that he met with the applicant and discussed alley ways in a general context; however, he stated that he could be fair and impartial with this item. Mr. Briggs asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. White provided a brief report on the proposed vacation. Page 5 of 9Page 11 of 297 Mayor Barajas declared the Public Hearing open to consider the proposed vacation. Following three calls for comments, and there being none, Mayor Barajas declared the Public Hearing closed. MOTION: Councilmember Campos moved, seconded by Councilmember Serrano to adopt Ordinance No. 4589, vacating the north -south alley of Block 2 Kurtzman’s 1st Addition to Pasco; and further; authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Ordinance - Rezone; Columbia Riverwalk I-1 to C-1 (Z 2022-002) Mayor Barajas announced that the proposed rezone for Columbia Riverwalk was a quasi-judicial action and asked Mr. Briggs to explain the procedure for quasi-judicial items. Mr. Briggs read the quasi-judicial procedure including how the Appearance of Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of questions associated with potential conflicts of interest to disclose such potential conflicts or appearance of conflicts. With no response from the Councilmembers, he asked if any members of the public were seeking to disqualify a member of Council from participating in the proceedings. No one came forward. Mr. White provided a brief report on the proposed rezone. Mayor Barajas declared the Public Hearing open to consider the proposed rezone. Following three calls for comments, and there being none, Mayor Barajas declared the Public Hearing closed. Mr. Serrano expressed support for the rezone and the proposed development of the property. MOTION: Councilmember Campos moved, seconded by Councilmember Torres to adopt Ordinance No. 4590, approving a Rezoning to Binding Site Plan No. 2008-03 from I-1 to C-1, and, further, authorize publication by summary only. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach Page 6 of 9Page 12 of 297 Resolution - Facts of Finding for Single Room Occupancy (SRO) Housing Moratorium Mr. White provided a brief report related to the facts of finding for the SRO Housing Moratorium, which will remain in affect until September 7, 2022. MOTION: Councilmember Campos moved, seconded by Councilmember Milne to approve Resolution No. 4178, adopting findings relating to the moratorium prohibiting Single Room Occupancy (SRO) Housing and conversion thereto in the City of Pasco pending study of impacts and best development practices and policy. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach Resolution - Broadmoor Tax Increment Financing (TIF) Mr. Zabell provided a brief recap regarding the Broadmoor TIF discussion held at the April 25, 2022, Council Workshop and the next steps in setting up a Tax Increment Area (TIA) in the Broadmoor area. Council, City Consultant Bob Stowe, and Mr. Zabell discussion ensued regarding the TIF and proposed Broadmoor TIA. MOTION: Councilmember Campos moved, seconded by Mayor Pro Tem Maloney to approve Resolution No. 4179, declaring Pasco City Council's intent to form a Tax Increment Area in the Broadmoor area. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach Purchase and Sale Agreement - City Purchase of Thunderbird Motel Mr. Ratkai provided a brief report on the status of the purchase of the Thunderbird Motel. Council expressed support for the purchase and commented on the motel sign. Council and Mr. Zabell briefly discussed the motel sign, Police and Fire call statistics to the motel and the status of relocation of individuals staying in the motel. Page 7 of 9Page 13 of 297 MOTION: Councilmember Campos moved, seconded by Councilmember Serrano to approve Resolution No. 4180, authorizing the Purchase of property located at 414 West Columbia Street, Pasco, WA, and further, authorize the City Manager to execute the closing documents. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach Resolution - Drinking Water State Revolving Fund - Funding Agreement for West Pasco Water Treatment Improvements Phase 2 Ms. Serra provided a brief report for the proposed Washington State Drinking Water loan for the Phase 2 West Pasco Water Treatment Improvements. MOTION: Councilmember Campos moved, seconded by Councilmember Roach to approve Resolution No. 4181, authorizing execution of a $9.75 million dollar loan agreement with the Washington State Department of Health (WSDOH) for the West Pasco Water Treatment Plant (WPWTP) Expansion Phase II project. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Campos, Councilmember Serrano, Councilmember Torres, Councilmember Milne, and Councilmember Roach MISCELLANEOUS DISCUSSION Mr. Zabell expressed appreciation to Ms. Serra, Mr. Worley and other Public Works Department staff for securing the low interest rate loan for the West Pasco Water Treatment Plant improvements. He announced the upcoming Cinco de Mayo events and commented on the status of the PPFD Ballot Proposition No. 1. Lastly, Mr. Zabell congratulated Mayor Barajas for her recent interview with Univision, which will be aired nationally. Mr. Campos announced the upcoming Art for Awareness event; all proceeds will benef it to the Tri-Cities Union Gospel Mission to help reduce homelessness in the Tri -Cities area. RECESS Mayor Barajas called a three (3) minute recess at 8:45 PM. Page 8 of 9Page 14 of 297 EXECUTIVE SESSION Council adjourned into Executive Session at 8:48 PM for ten (10) minutes to discuss with legal counsel about current or potential litigation per RCW 42.30.110(1)(i) with the City Manager, Deputy City Manager and the Assistant City Attorney. At 8:58 PM Mayor Barajas announced that the Executive Session would continue for another five (5) minutes or until 9:03 PM. Mayor Barajas called the meeting back to order at 9:04 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 9:04 PM. PASSED and APPROVED this ____ day of ________________, 20__. APPROVED: ATTEST: Blanche Barajas, Mayor Debra Barham, City Clerk Page 9 of 9Page 15 of 297 MINUTES City Council Workshop Meeting 7:00 PM - Monday, May 9, 2022 City Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor. ROLL CALL Councilmembers present: Blanche Barajas, Craig Maloney, Joseph Campos, Pete Serrano, David Milne, Zahra Roach, and Nikki Torres Councilmembers absent: None Staff present: Dave Zabell, City Manager; Adam Lincoln, Deputy City Manager; Colleen Chapin, Human Resources Director; Eric Ferguson, City Attorney; Bob Gear, Fire Chief; Zach Ratkai, Administrative & Community Services Director; Brent Cook, Deputy Police Chief; Darcy Buckley, Finance Manager; Rick White, Community & Economic Development Director; Steve Worley, Public Works Director; and Debby Barham, City Clerk. The meeting was opened with the Pledge of Allegiance. VERBAL REPORTS FROM COUNCILMEMBERS Ms. Torres commented on the Fire Ops Training that she and Councilmember Campos attended during the past week. Mayor Pro Tem Maloney commented on the recent Cinco de Mayo celebration. He announced the best taco selected through the Taco Crawl fundraiser this year was from Don Rubio's restaurant. Mr. Milne also commented on the Cinco de Mayo celebration. He also attended the Pasco Chamber of Commerce meeting earlier in the day. Lastly, he gave a shout out to the Pasco Fire Department to help a family of ducks. Page 1 of 5Page 16 of 297 Mr. Campos commented on the Fire Ops Training. He also commented on Cinco de Mayo celebration. Lastly, he attended a Ben Franklin Transit Operations meeting last week. Mayor Barajas relayed comments she received on the Cinco de Mayo parade and the Pasco Police Department, as well as other aspects of the weekend event. Ms. Roach commented on the Wednesday evening cultural event, as well as the Saturday parade held during the Cinco de Mayo celebration. ITEMS FOR DISCUSSION Mid-Columbia Libraries Update Mr. Ratkai introduced Mid-Columbia Libraries Executive Director and Chief Librarian Kyle Cox who provided an update regarding the Pasco libraries, as well as a brief comment regarding the new interlocal agreement negotiations between the City and the MCL for library services within Pasco. Council, Mr. Cox and staff discussion continued regarding the status of the new interlocal agreement and asked for the timeline when the interlocal agreement will be brought back for Council consideration. They commented on the needs of Pasco residents use of the libraries' computers. Lastly, Council asked for additional information about the steps needed to annex the MLC into Pasco, which would remove the City of Pasco from funding the library services directly and, the library funding would be assessed through property taxes. Mr. Zabell noted that the new interlocal agreement will need to be approved by June 30th, and in the next few weeks, staff will prepare options for the new ILA for Council to consider at another Workshop. Update on Tri-Cities Animal Authority Operations and Facility Mr. Ratkai provided a brief update on the Tri-Cities Animal Control Authority (TCACA), the Tri-Cities Animal Control and Shelter (TCACS) operations, currently ran by the Benton Franklin Human Society (BFHS). He provided the status of the new animal shelter facility and the need to transfer the animals to an auxiliary shelter, located at the BFHS site in Kennewick, WA, while the new shelter is being built. Next, he introduced BFHS and TCACS Executive Director Autumn White who provided a brief report on the care of animals in the current Tri -Cities Animal Shelter and the need to move the animals out of the current shelter into an auxiliary shelter until the new shelter is built as the current facility is well past its useful life. Council, Ms. White and staff discussed the current needs of the animals, timeline of building the new shelter, BFHS's plan for an in-house veterinarian, updates needed to the auxiliary facility located in next to BFHS facility, and how to build goodwill with the public in managing the TCACS. Page 2 of 5Page 17 of 297 Resolution - Process Water Reuse Facility (PWRF): Beus Release of Interest Agreement Mr. Worley provided a brief report on the pending purchase of the Untied States Bureau of Reclamation (USBR) property for the needed expansion of the City's Process Water Reuse Facility (PWRF). He explained the proposed release of interest agreement with Beus for the USBR property that Mr. Beus was also interested in purchasing. He described the placement of the proposed storage ponds noting that additional analysis is needed before finalizing the plans for the ponds. Lastly, he stated that it is important that the City purchase these parcels of land now in order to accommodate the new Darigold facility currently scheduled in March 2024. Council and Mr. Worley continued to discuss the proposed purchase of USBR property and release of interest agreement with Beus. Resolution - Council Goals for 2022-2023 Mr. Zabell provided a brief report on the 2022-2023 Council Goals drafted after Council's biennial retreat. He noted that these goals drive the business of the City and provide focus on City's budget, short and long-term plans, and implementation of projects supporting Council's direction. He asked for Council's feedback on the draft goals and stated that the 2022 -2023 Council Goals will be brought back to Council for final action at the May 16, 2022, Business Meeting. Overall, Council was please with the draft goals during their discussion with Mr. Zabell. They offered some minor suggestions to clarify the goals and questioned the SEPA mitigation goal as written. They expressed appreciation to staff who helped develop the goals based on their discussion during the recent Council Retreat. Lastly, they commented on the past goals set by previous Councils' that are now coming to fruition such as the new Peanuts Park and the new Lewis Street Overpass among other key strategies to expand the City of Pasco and m ake it a thriving community. MISCELLANEOUS COUNCIL DISCUSSION Mr. Zabell announced the Association of Washington Cities (AWC) Conference, scheduled for June 21 to 24, 2022; he encouraged Council to attend the conference. He announced that the City is receiving an increased number of ribbon-cutting event requests, with two scheduled for later in the the week; a r ibbon-cutting event for the Columbia River Walk Apartments, scheduled on Friday, May 13 and Fun to Learn is scheduled on Saturday, May 14. Both Mayor Barajas and Mr. Zabell asked that Council be available to attend upcoming ribbon-cutting events as the Mayor is unable to attend them all. Mr. Zabell announced the Memorial Day event scheduled on May 30th at Memorial Cemetery and the City's Volunteer Appreciation lunch event scheduled on June 4th. He also commented on the Cinco de Mayo event and thanked City staff from the Public Page 3 of 5Page 18 of 297 Works Department and Administrative & Community Services Facilities Division, and Police Department, as well as Economic Development Manager Mike Gonzalez, for their efforts in the making this year's event successful. He stated that, while there may be some minor tweaking needed to the park, he was impressed on how well the new Peanuts Park facility performed. Mr. Zabell announced the Hanford Area Tours are available again and are currently being offered to the City Councils and City Managers within the Tri-Cities area. Mr. Campos encouraged Council to attend the Hanford Tours and he is a maybe for the Hanford Area tour. He requested a brief on the management of the Cinco de Mayo. Mr. Milne said yes to the Hanford Area Tour. He also suggested that additional bathrooms be brought in during the next Cinco de Mayo event. Ms. Torres said yes to the Hanford Area Tour. Mayor Barajas said yes to the Hanford Area Tour. Mayor Pro Tem Maloney stated that he has toured the Hanford site several times, so he does not plan on attending the Hanford Area Tour this year. EXECUTIVE SESSION Mr. Zabell stated that he did not receive the information needed to discuss the real estate issue during the Executive Session; however the discussion of the performance of a public employee was still needed and he anticipated it would last 15 minutes. RECESS Mayor Barajas declared a five-minute recess at 9:05 PM before adjourning into Executive Session. EXECUTIVE SESSION Council adjourned into Executive Session at 9:10 PM for 15 minute s to discuss performance of a public employee per RCW 42.30.110(1)(g) with the City Manager, Deputy City Manager, Community & Development Services Director, and the City Attorney. At 9:25 PM Mayor Barajas announced that the Executive Session would continue for another five (5) minutes. Mayor Barajas called the meeting back to order at 9:30 PM. Page 4 of 5Page 19 of 297 ADJOURNMENT There being no further business, the meeting was adjourned at 9:30 PM. PASSED and APPROVED this __ day of ________________, 20__. APPROVED: ATTEST: Blanche Barajas, Mayor Debra Barham, City Clerk Page 5 of 5Page 20 of 297 AGENDA REPORT FOR: City Council May 12, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Richa Sigdel, Finance Director Finance SUBJECT: Bills and Communications I. REFERENCE(S): Accounts Payable 05.16.22 Bad Debt Write-off/Collection for April 2022 II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $4,744,145.74 ($2,540,738.07 in Check Nos. 248217-$1,260,950.56 in 248485; Electroni 835632, Nos. Transfer c 835638, 835641, 835686-835688, 835758; $17,859.84 in Check Nos. 53891- 53908; $923,627.70 in Electronic Transfer Nos. 30174725 -30175276; $223.86 in Electronic Transfer Nos.878-879; $745.71 in Electronic Transfers Nos. 164- 166). To approve bad debt write-off for Utility Billing, Ambulance, Cemetery, General Accounts, Miscellaneous Accounts, and Municipal Court (non-criminal, criminal, and parking) accounts receivable in the total amount of $178,802.72 and, of that amount, authorize $0.00 to be turned over for collection. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 21 of 297 REPORTING PERIOD: May 16, 2022 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 248217-248485 53891-53908 Total Check Amount $2,540,738.07 $17,859.84 Total Checks 2,558,597.91$ Electronic Transfer Numbers 835632 30174725-30175276 878-879 164-166 835638 835641 835686-835688 835758 Total EFT Amount $1,260,950.56 $923,627.70 $223.86 $745.71 Total EFTs 2,185,547.83$ Grand Total 4,744,145.74$ Councilmember 371,554.52 52,788.57 815.00 230.00 0.00 1,906.87 92,188.00 1,234.13 15,134.37 1,938.08 0.00 482.66 4,250.50 0.00 1,087.52 39.00 46,164.44 52.45 1,519,560.01 1,507,322.42 131,757.04 31,028.79 1,031.70 150.00 963,429.67 GRAND TOTAL ALL FUNDS:4,744,145.74$ PAYROLL CLEARING EQUIPMENT RENTAL - OPERATING BUSINESS EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL FLEX EQUIPMENT RENTAL - OPERATING GOVERNMENTAL RIVERSHORE TRAIL & MARINA MAIN REVOLVING ABATEMENT ECONOMIC DEVELOPMENT STADIUM/CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION UTILITY, WATER/SEWER SCHOOL IMPACT FEES C.D. BLOCK GRANT HOME CONSORTIUM GRANT NSP GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE ARPA CEMETERY ATHLETIC PROGRAMS GOLF COURSE SENIOR CENTER OPERATING MULTI-MODAL FACILITY City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim. Dave Zabell, City Manager Darcy Buckley, Finance Manager We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 16th day of May, 2022 that the merchandise or services hereinafter specified have been received and are approved for payment: Councilmember SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET The City Council April 28 - May 11, 2022 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved Page 22 of 297 BAD DEBT WRITE-OFF/COLLECTION April 1 – April 30, 2022 1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-offs under $20 with no current forwarding address or are accounts in "occupant" status. Accounts submitted for collection exceed $20.00. 2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. Direct write off including DSHS and Medicare customers; the law requires that the City accepts assignment in these cases. 3. COURT ACCOUNTS RECEIVABLE - These are all delinquent non-criminal and criminal fines, and parking violations over 30 days past due. 4. CODE ENFORCEMENT – LIENS - These are Code Enforcement violation penalties which are either un-collectable or have been assigned for collections because the property owner has not complied or paid the fine. There are still liens in place on these amounts which will continue to be in effect until the property is brought into compliance and the debt associated with these liens are paid. 5. CEMETERY - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. 6. GENERAL - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. 7. MISCELLANEOUS - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. Direct Write-off Referred to Collection Total Write-off Utility Billing $ 21.98 .00 21.98 Ambulance $ 178,780.74 .00 178,780.74 Court A/R $ .00 .00 .00 Code Enforcement $ .00 .00 .00 Cemetery $ .00 .00 .00 General $ .00 .00 .00 Miscellaneous $ .00 .00 .00 TOTAL: $ 178,802.72 0.00 178,802.72 Page 23 of 297 AGENDA REPORT FOR: City Council May 11, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Dave Zabell, City Manager Executive SUBJECT: Resolution - Council Goals for 2022-2023 I. REFERENCE(S): Resolution 2022-2023 City Council Goals II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to adopt Resolution No. _____, establishing primary goals for the City of Pasco for the ensuing calendar years 2022 -2023. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: Council conducted a goal setting retreat, facilitated by Andrew Neiditz, to consider goals for the 2022-2023 biennium on March 25 and 26, 2022. Based on the information received from public meetings, the National Community Survey, partner agencies and senior staff reports, Council provided guidance for developing the goals for the next two years. Council discussed the goals worksheet at their May 9, 2022, workshop meeting. V. DISCUSSION: A majority of Council requested modification to the third bullet under Quality of Life, staff has revised this goal as follows: • Completion of the Housing Action and Implementation Plan with a focus on a variety of housing to address the needs of the growing population . strategies that emphasize affordable housing. Staff recommends approval of the 2022-2023 Goals as presented. Page 24 of 297 Page 25 of 297 Resolution – 2022-2023 Council Goals - 1 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ESTABLISHING PRIMARY GOALS FOR THE ENSUING CALENDAR YEARS OF 2022-2023. WHEREAS, the City of Pasco organization desires to focus the allocation of its resources toward primary goals selected to fulfill the vision of Pasco's future, as held by its elected representatives; and WHEREAS, the City Council conducted Community Forums on February 17, March 3, and March 10, 2022 to elicit the concerns of residents and businesses about the present condition of the City, as well as thoughts and suggestions for Pasco' s future; and WHEREAS, the City Council considered goal statements from its local partner governmental organizations and results from the 2021 National Community Survey; and WHEREAS, the City’s managerial staff has shared with the City Council its concerns for the present, as well as, visions for the future of the Pasco community; and WHEREAS, the City Council conducted a goal setting retreat on March 25 and March 26, 2022, to discuss all of the various concerns for the present, as well as visions for the future. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the goals for calendar years 2022 and 2023 as described in Exhibit A attached hereto, shall be considered primary goals for the City of Pasco. Be It Further Resolved that the City Manager is hereby directed and authorized to formulate appropriate implementation strategies to achieve the goals attached hereto, consistent with appropriation policies and procedures. PASSED by the City Council of the City of Pasco, Washington t his ___ day of ______, 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 26 of 297 QUALITY OF LIFE Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure including, but not limited to: • Completion of Transportation System Master Plan and design standard updates to promote greater neighborhood cohesion in new and re-developed neighborhoods through design elements, e.g.; connectivity, walkability, aesthetics, sustainability, and community gathering spaces. • Completion of the Parks, Recreation and Open Space Plan and development of an implementation strategy to enhance such services equitably across the community. • Completion of the Housing Action and Implementation Plan with a focus on a variety of housing to address the needs of the growing population. FINANCIAL SUSTAINABILITY Enhance the long-term viability, value, and service levels of services and programs, including, but not limited to: • Adopting policies and strategic investment standards to assure consistency of long-range planning to include update of impact fees, area fees to specific infrastructure, and SEPA mitigation measures related to new development, e.g.; schools, traffic, parks, and fire. COMMUNITY TRANSPORTATION NETWORK Promote a highly functional multi-modal transportation system including, but not limited to: • Application of the adopted Transportation System Master Plan including development of policies, regulations, programs, and projects that provide for greater connectivity, strategic investment, mobility, multi -modal systems, accessibility, efficiency, and safety. COMMUNITY SAFETY Promote proactive approaches for the strategic investment of infrastructure, staffing, and equipment including, but not limited to: • Adoption and develop implementation strategies for Comprehensive Fire Master Plan aimed at maintaining the current Washington State Rating Bureau Class 3 community rating. • Collaboration with regional partners to influence strategies to reduce incidences of homeless by leveraging existing resources such as the newly implemented 0.1% mental health sales tax, use of resource navigator programs, and other efforts. • Development of an implementation strategy for the Comprehensive Police Master Plan to support future service levels of the department to assure sustainability, public safety, officer safety, crime control, and compliance with legislative mandates. ECONOMIC VITALITY Promote and encourage economic vitality including, but not limited to: • Implementation of the Comprehensive Land Use Plan through related actions including zoning code changes, phased sign code update, and development regulations and standards. • Completion of Area Master Plans and environmental analysis complementing the Comprehensive Land Use Plan such as Downtown and Broadmoor Master Plans. • Development of an Economic Development Plan, including revitalization efforts. COMMUNITY IDENTITY Identify opportunities to enhance community identity, cohesion, and image including, but not limited to: • Development of a Community Engagement Plan to evaluate strategies, technologies, and other opportunities to further inclusivity, community engagement, and inter-agency and constituent coordination efforts. • Support of the Arts and Culture Commission in promoting unity and the celebration of diversity through art and culture programs, recognition of significant events or occurrences, and participation/sponsorship of events within the community. Page 27 of 297 AGENDA REPORT FOR: City Council May 12, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Steve Worley, Director Public Works SUBJECT: Resolution - Process Water Reuse Facility (PWRF): Beus Release of Interest Agreement I. REFERENCE(S): Resolution Agreement Map II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. ______, authorizing the City Manager to sign and execute the Process Water Reuse Facility Agreement with Don and Quella Beus and Beus Farms, Inc. for the release of interest in the United States Bureau of Reclamation Parcel No. 113080058. III. FISCAL IMPACT: Option 1: Provided the City receives the Washington State Department of Ecology (Ecology) approval of the revised Process Water Reuse Facility (PWRF) Engineering Report, and Ecology permits Beus’ parcel to become part of the PWRF land treatment system, the City agrees to pay Beus $258,420 for this release of interest. Option 2: If the City does not receive Ecology approval by March 31, 2023, for adding Beus’ parcel to the PWRF Land Treatment System, the City will pay Beus $350,000 for this release of interest. These costs are covered by the 460 PWRF Fund. IV. HISTORY AND FACTS BRIEF: The City owns and operates the Process Water Reuse Facility (PWRF). The PWRF screens, filters, and/or stores over 900 million gallons of agricultural Page 28 of 297 process wastewater each year. The wastewater is then pumped to over 1850 acres (14 farm circles) of crop land that provides the final treatment and disposal. To accommodate the desire of existing food processors to grow their operations and future system users, such as the Darigold plant, treatment capacity of the PWRF needs to be increased. Winter storage capacity and the land treatment system both need to be increased. V. DISCUSSION: During preliminary design work of the PWRF improvements, it was determined that to accommodate projected storage demands, additional land would be required. Staff reached out to the U.S. Bureau of Reclamation (USBR), Ephrata office, about the possibility of purchasing the two 80-acre parcels they owned immediately north and south of the PWRF property (See Exhibit A). These properties are the most logical for acquisition due to proximity, availability and physical characteristics, particularly the north parcel. The USBR is amenable to selling these parcels to the City. However, the USBR also received interest from a local farmer in purchasing the north parcel. With two parties interested in the same USBR parcel, USBR indicated that they will need to auction auction the contested parcel, a process they anticipate would take a year to begin. Staff contacted the other party, a local farmer, Mr. Beus, of Beus Farms Inc., to determine under what conditions he would be willing to release his interest in the north USBR property so that the City could purchase the property outright. Over the past five months, the attached draft agreement was developed. While there are a couple of minor items still being worked out between attorneys, staff wanted to share this draft with Council and answer any questions. This item was discussed at the May 9, 2022, Council Workshop meeting. City staff recommends Council's approval of the proposed resolution authorizing the City Manager to execute the agreement with Beus Farms Inc. once a ny minor substantive changes are agreed upon. Page 29 of 297 Resolution – Beus Release of Interest in USBR Property Agreement - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE THE PROCESS WATER REUSE FACILITY AGREEMENT WITH DON AND QUELLA BEUS (BEUS) AND BEUS FARMS, INC. (FARM) FOR THE RELEASE OF INTEREST IN THE UNITED STATES BUREAU OF RECLAMATION PARCEL NO. 113090058. WHEREAS, the City of Paco (City) owns, operates, and maintains a Washington State Department of Ecology (Ecology) approved Process Water Reuse Facility (PWRF) and 14 nearby farm circles for the treatment and disposal of industrial wastewater from several local agricultural processing plants; and WHEREAS the City’s PWRF currently receives an annual total of over 900MG of industrial wastewater from six agricultural food processors; and WHEREAS, a new dairy processor proposes to build a large plant currently scheduled to be operational by the end of 2023 and several existing agricultural processors wish to expand and increase their industrial wastewater flow to the PWRF; and WHEREAS, the City has need to increase the treatment capacity of the PWRF, increase winter storage pond capacity, and increase the land treatment system to accommodate the increased growth in Pasco’s agricultural processing market; and WHEREAS, the United States Bureau of Reclamation (USBR) Parcel No. 113090058 is uniquely located adjacent to the north side of the City’s PWRF property and provides the opportunity to expand the PWRF winter storage capacity through the construction of lined storage ponds; and WHEREAS, Farm, desires to expand their existing farming operation by establishing new farm circles on Beus’ 160-acre property, Parcel No. 124690059, using PWRF treated water to irrigate said parcel, and leasing said Farm from Beus; and WHEREAS, Beus, Farm, and City agree it is in the interest of the parties to enter into this agreement for the mutual benefit of the parties. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager for the City of Pasco is hereby authorized to execute the Agreement with Beus and Farm, a copy of which is attached hereto, and incorporated herein by reference as Exhibit A, and to make minor substantive changes as necessary to execute the Agreement; and Page 30 of 297 Resolution – Beus Release of Interest in USBR Property Agreement - 2 Be It Further Resolved that this Resolution shall be in full force and effect upon adoption. PASSED by the City Council of the City of Pasco, Washington this __ day of ________, 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 31 of 297 Beus Release of Interest in USBR Property Agreement Page 1 of 7 FILED FOR RECORD AT REQUEST OF: City of Pasco, Washington WHEN RECORDED RETURN TO: City Clerk City of Pasco, Washington 525 North 3rd Pasco WA 99301 _____________________________________________________________________________ PROCESS WATER REUSE FACILITY (PWRF) AGREEMENT FOR BEUS RELEASE OF INTEREST IN USBR PROPERTY THIS AGREEMENT between the City of Pasco, a Washington Municipal Corporation, hereinafter referred to as “City”, and Don and Quella Beus, hereinafter referred to as “Beus”, and Beus Farms, Inc., hereinafter referred to as “Farm”, collectively referred to as “Parties”, enter into this Agreement for the purpose of Beus releasing interest in United States Bureau of Reclamation (USBR) Parcel No. 113090058 in accordance with the following terms and conditions. WHEREAS, the City owns, operates, and maintains a WA State Department of Ecology (“Ecology”)-approved Process Water Reuse Facility (“PWRF”) and 14 nearby farm circles for the treatment and disposal of industrial wastewater from several local agricultural processing plants; and WHEREAS, the City’s PWRF currently receives an annual total of over 900MG of industrial wastewater from six agricultural food processors; and WHEREAS, a new dairy processor proposes to build a large plant currently scheduled to be operational by the end of 2023 and several existing agricultural processors wish to expand and increase their industrial wastewater flow to the PWRF; and WHEREAS, the City has need to increase treatment capacity of the PWRF, increase winter storage pond capacity, and increase the land treatment system to accommodate the increased growth in Pasco’s agricultural processing market; and WHEREAS, USBR parcel no. 113090058 is uniquely located adjacent to the north side of City’s PWRF property and provides the opportunity to expand the PWRF winter storage capacity through the construction of lined storage ponds; and WHEREAS, Farm, desires to expand their existing farming operation by establishing new farm circles on Beus’ 160-acre property, parcel no. 124690059, using PWRF treated water to irrigate said parcel, with the intent of Beus leasing said parcel to Farm; and EXHIBIT A Page 32 of 297 Beus Release of Interest in USBR Property Agreement Page 2 of 7 WHEREAS, Beus, Farm, and City agree it is in the interest of the Parties to enter into this agreement for the mutual benefit of the parties. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL CONVENANTS CONTAINE D HEREIN, the Parties agree as follows: A. City Responsibilities: City agrees, contingent on Ecology approval: 1. To provide a minimum of 100 million gallons per year and up to a maximum of 180 million gallons per year of PWRF treated wastewater to Beus parcel #124690059 for irrigation purposes on up to 160 acres. Said wastewater shall be of such quality as to produce healthy crops, as defined by industry standard. Said wastewater shall be at no charge to Beus or Farm. Further, Beus and/or Farm are not required to take water when they do not need it, provided, that Beus and/or Farm take the minimum of 100 million gallons of water per year. 2. City shall seek permit approval from Ecology for said wastewater to be used for irrigation purposes on Beus parcel #124690059. 3. City to use existing PWRF irrigation pump station and construct a 12-inch HDPE force main to southeast corner of Beus parcel #124690059. 4. Estimated date for available PWRF irrigation water is March 2024 . 5. City to provide maintenance on all pumps and underground pipes on City property. 6. City to pay Beus $258,420 within 30 days of receipt of approval of revised PWRF Engineering Report and Ecology permit that includes said Beus parcel as part of City’s PWRF land treatment system. 7. Estimated date of Ecology approval is December 2022. Notwithstanding Ecology approval, City agrees, 1. To negotiate a lease to Farm PWRF Circle 10, 127 acres in size, for the 2023 growing seasons (1 year) under the following conditions: a. Farm agrees to grow silage corn and triticale b. Prior to farming PWRF Circle 10, Farm agrees to negotiate a standard PWRF lease agreement, substantially in the same form as provided in Exhibit A, with City, and farm said Circle in accordance with the lease terms and conditions, best PWRF practices, and as required to meet Ecology permitting requirements . Page 33 of 297 Beus Release of Interest in USBR Property Agreement Page 3 of 7 c. Farm agrees to pay City standard lease amount as determined by City’s Ag Lease consultant, which is the same as all other PWRF growers . d. Lease will begin March 2023, however, access to the Circle 10 will be made available to Farm no later than September 1, 2022, for prep work. 2. If City does not receive Ecology approval by March 31, 2023, for adding Beus parcel to the PWRF Land Treatment System utilizing the crop rotation identified in this agreement, City agrees to pay Beus $350,000 within 90 days. 3. Within 30-days of City acquisition of USBR parcel #113090058, City shall grant Beus a non-exclusive 30-foot-wide access easement along the following property boundaries for agricultural purposes to access Beus farm property. a. West side of City parcel #113090085 b. West side of subject USBR parcel #113090058 c. North side of subject USBR parcel #113090058 4. City agrees to share use of existing access easement on Blasdel parcels #113100037 and #113100055, provided Blasdel grants access rights to Beus, a copy of which to be provided to City. In the event that City acquires the Blasdel property described herein, th en City will grant to Beus an access easement across said property. B. Beus and Farm Responsibilities: Notwithstanding Ecology approval, Beus and Farm agree: 1. Within five days of the execution date of this agreement, to submit a letter to the Ephrata office of the USBR stating the release all Beus’ and Farm’s interests in the purchase of said USBR parcel no. 113090058. A copy of said letter to be provided to City at same time of delivery to USBR. 2. Beus agrees to allow City immediate access to Beus parcel no. 124690059 for all necessary work associated with the addition of said parcel into the PWRF land treatment system, including but limited to, survey, cultural resources evaluation, geotechnical exploration, groundwater monitoring well installations, water and soils testing, and any other need related to getting approval by Ecology. 3. Beus agrees to grant City, within one month of execution date of this agreement, two access and utility easements over, across, under, and within the following described areas: a. South 30 feet of Beus parcel #124690059, and b. A portion of the southwest corner of Beus parcel #124700038 large enough to sweep future force mains into USBR parcel #113090058. Page 34 of 297 Beus Release of Interest in USBR Property Agreement Page 4 of 7 4. Said easements shall be for the installation, operation, and maintenance of underground pipes and air-vac assemblies (if needed) to provide industrial wastewater to and from City’s PWRF. 5. City construction and maintenance work within said easements shall be coordinated with Beus and/or Farm to minimize crop damage to the maximum extent possible. If crop damage occurs as a result of City construction and maintenance work related to this agreement, or as a result of failure of City installed facilities upon or under the easements based on City’s negligence in maintaining such fac ilities, City agrees to reimburse Beus and/or Farm for damaged crops at market rates and Beus and Farm for equipment and land damage. Contingent on Ecology approval, Farm and/or Beus agree: 1. Upon Ecology approval of revised Engineering Report, Farm and/or Beus agree to install pivot and mainline on Beus parcel #124690059 for irrigation purposes . 2. With Ecology approval of the delivery of PWRF irrigation water to Beus property, Farm and/or Beus agree to receive from City a minimum of 100 million gallons each year for a minimum of 20 consecutive years. Beus approves the foregoing and agrees to negotiate to enter into a lease with Farm to allow Farm to receive the PWRF irrigation water pursuant to an agreement between City and Farm referred to in Section B (5). 3. Farm and/or Beus agrees to grow on parcel #124690059 potatoes the first year, followed by Triticale for winter cover crop. For the second and third year, corn for silage will be grown followed by triticale for winter cover crop. This three-year crop rotation of one year of potatoes followed by two years of corn with a triticale winter crop each of the three years shall be followed unless an alternate crop rotation is otherwise approved by City and Farm and/or Beus. 4. Farm and/or Beus agrees to accept pretreated PWRF wastewater ‘as-is’ provided said wastewater is not harmful, based on industry standards, to crops and any mixing water shall be provided by City at no cost to Beus or Farm. 5. Farm and/or Beus agrees to operate pivots on Beus parcel no. 124690059 in coordination with City to help ensure the City meets Ecology’s permit requirements for the PWRF land disposal system. This will be in the same manner as existing PWRF growers that are under City lease agreements. It is the intent of Farm and City to enter into a PWRF Irrigation Agreement for the irrigation of herein referred parcel #. Farm and/or Beus agrees to provide, at no cost to City, all maintenance on pivots and pipes located within Beus parcel #124690059. 6. In the event that Farm and City are unable to enter into such Irrigation Agreement for any reason, then the City agrees to pay Beus $350,000 within 90 days of the failure of entering into said agreement and the above sections 1-5 of this agreement shall not be effective. Page 35 of 297 Beus Release of Interest in USBR Property Agreement Page 5 of 7 C. Other Terms and Conditions: 1. Dispute Resolution. In the event of dispute, the parties shall first meet in a good faith attempt to resolve such dispute, with or without the assistance of mediation. In the event the dispute remains, it shall be resolved by binding arbitration pursuant to RCW 7.04A, as amended, and the Mandatory Rules of Arbitration (MAR) with all parties waiving the right of a jury trial upon de novo review. Venue shall be placed in Franklin County, Washington; the laws of the State of Washing ton shall apply; and the prevailing party shall be entitled to its reasonable attorney fees and costs. 2. Assignability. This Agreement, and the rights and responsibilities hereunder, shall not be assigned, conveyed, sublet, or transferred by Beus and/or Farm without the prior written consent of the City, which consent shall not be unreasonably withheld. If Beus and/or Farm wishes to lease parcel no. 124690059 for the sole purpose of growing potatoes, City shall not unreasonably without consent provided all requirements of this agreement and the aforementioned Irrigation Agreement remain the responsibility of Beus and/or Farm. 3. Notice. Any notice or information required or permitted to be given to the parties under this Agreement shall be to the following addresses, unless otherwise specified: City of Pasco Don and Qualla Beus and Beus Farms, Inc. Mr. Dave Zabell, City Manager Don Beus 525 North 3rd 502 E Vineyard Lane Pasco, WA 99301 Pasco, WA 99301 (509) 545-3404 (509) 545-9812 zabelld@pasco-wa.gov beuscattle@pocketinet.com Notice shall be deemed given upon receipt of personal delivery, e -mail transmission, or five (5) days after deposit in the United States Mail in the case of regular mail, or next day in the case of overnight delivery. 4. Modification. This Agreement may not be amended, modified, or terminat ed except by written agreement signed and approved by all parties. 5. Effective Date. This Agreement shall become effective upon the date of signature approval by the last party as indicated below. DATED this ________day of ____________, 2022. [Signature pages follows] Page 36 of 297 Beus Release of Interest in USBR Property Agreement Page 6 of 7 CITY OF PASCO, WASHINGTON: By: _______________________________ Dave Zabell, City Manager STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Dave Zabell of the City of Pasco, Washington, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2022. ________________________________________ Notary Public in and for the State of Washington Residing at _______________________________ My Commission Expires: ____________________ ___________________________ Don Beus ___________________________ Quella Beus STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Don Beus and Quella Beus, of Franklin County, Washington, described in and who executed the within and foregoing instrument, and acknowledged that they signed the same as their free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this ___ day of ______________, 2022. ________________________________________ Notary Public in and for the State of Washington Residing at _______________________________ My Commission Expires: ____________________ Page 37 of 297 Beus Release of Interest in USBR Property Agreement Page 7 of 7 BEUS FARMS, INC. By: __________________________________ Don Beus STATE OF WASHINGTON ) : ss COUNTY OF FRANKLIN ) On this day personally appeared before me Don Beus, described in and who executed the within and foregoing instrument, and acknowledged that he signed the same as his fr ee and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and official seal this _____ day of _____________2022. ____________________________________________ NOTARY PUBLIC in and for the State of Washington Residing at: __________________________________ My Commission Expires: _______________________ Page 38 of 297 PUBLIC WORKS DEPARTMENT (509)543-5738/FAX (509)543-5737 PO Box 293/525 North 3rd Ave. Pasco, WA 99301/www.pasco-wa.gov Exhibit A – Parcel Map Beus Parcel No. 124690059 Beus Parcel No. 24700038 USBR Parcel No. 113090058 City of Pasco Parcel No. 113090085 Blasdel Parcel No. 113100037 Blasdel Parcel No. 113100055 Foster Wells Road USBR Parcel No. 113090058 Subject Property Pasco PWRF Existing Access Easement to PWRF Page 39 of 297 AGENDA REPORT FOR: City Council April 20, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Steve Worley, Director Public Works SUBJECT: Presentation of Proclamation for Public Works Week I. REFERENCE(S): Proclamation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Mayor Barajas will read and then present the proclamation to Dustin Wittman, Project Support Specialist from the Pasco Public Works Department. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: National Public Works week started in 1960 as an annual way to energize and educate the public on the importance of public works to their daily lives. Planning, building, managing and operating is at the heart of improving the everyday quality of life for all. V. DISCUSSION: "Ready and Resilient" is the theme for the 2022 National Public Works Week. Within every public works professional lies a superhero, which is dramatically represented in this year's theme. Public works professionals are always READY to serve their communities and RESILIENT as ever in their abilities to pick themselves up off the ground after encountering challenges. This theme highlights the ability of these professionals to perform regular public works duties and be ready at a moment's notice to react as first responders during natural disasters and overcome trials seen in the field. Page 40 of 297 Public works superheroes help keep communities strong by providing an infrastructure of services in transportation, water, wastewater, irrigation, an d stormwater treatment, public buildings and spaces, emergency management and first response, solid waste, and right-of-way management. They are what make our communities great places to live and work. Council and staff would like to take this opportunity to express appreciation to the City's Public Works employees for their contributions and care for the safety and health of residents, businesses and visitors of Pasco. Page 41 of 297 cÜÉvÄtÅtà|ÉÇ “Public Works Week” May 15-21, 2022 WHEREAS, public works services provided in our community are an integral part of our citizens’ everyday lives; and WHEREAS, the support of an understanding and informed citizenry is vital to the efficient operation of public works systems and programs such as water, sewer, streets and highways, public buildings, and solid waste collection; and WHEREAS, the health, safety, and comfort of this community greatly depends on these facilities and services; and WHEREAS, the quality and effectiveness of these facilities, as well as their planning, design, construction and continued maintenance is vitally dependent upon the efforts and skill of public works employees; and WHEREAS, the efficiency of the qualified and dedicated personnel who staff public works departments is materially influenced by the people’s attitude and understanding of the importance of the work they perform; NOW, THEREFORE, I, Blanche Barajas, Mayor of the City of Pasco, Washington, do hereby proclaim May 15-21, 2022 as “Public Works Week” in the City of Pasco, and call upon all citizens and civic organizations to acquaint themselves with the challenges and diversity of public works projects and operations, and to recognize the contributions which public works employees make every day to our health, safety, comfort, and quality of life. IN WITNESS WHEREOF, I have hereunto set my hand and caused the Official Seal of the City of Pasco, State of Washington, to be affixed this 16th day of May 2022. Blanche Barajas, Mayor City of Pasco Page 42 of 297 AGENDA REPORT FOR: City Council May 9, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Steve Worley, Director Public Works SUBJECT: Resolution - Regional Pavement Cut Policy I. REFERENCE(S): Resolution Regional Pavement Cut Policy II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4165, adopting the Regional Pavement Construction and Design Pasco's Revision and Policy Cut to Standards and Specifications for Public Works Improvements. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The City of Pasco (City) issues permits for construction work in the public right - of-way. Many times, this work involves cutting and removing pavement from existing streets. These permits are typically issued by utility companies adding new facilities or replacing existing facilities, or by contractors when new development or redevelopment requires extension and/or connection to utility lines, or extension of a street. While the City requires permittees to restore damage caused by construction, cutting, removing, and patching of pavement, this work reduces the pavement's effective service life. As the owner and agency responsible for pavement maintenance, the City has an interest in obtaining high-quality pavement patches that minimizes the negative impact on pavement service life. Page 43 of 297 Over the past six months, the Cities of Richland, Kennewick, Pasco, and West Richland have worked together to establish updated and uniform standards to mitigate damage caused by removing pavement on public streets. At the April 4, 2022, Council meeting, Council and staff agreed to bring this item back after reviewing the proposed policy with the Development community and further information is gathered. On Thursday, May 5, 2022, Director Worley attended the monthly Developer Outreach meeting with the City Engineer and the local development community. The proposed policy was reviewed, and a discussion took place. The development community was supportive of the regional policy, provided it did not hold up the development of private property adjacent to Resurfaced Streets. Pasco's interests are served by joining with the other cities in adopting uniform standards that protect all City investments in public infrastructure by preserving the driving surface of all public streets in Pasco and in the Tri-Cities region. V. DISCUSSION: This item was previously discussed at the April 4, 2022, Council meeting. City staff recommends approval of the attached Regional Pavement Cut Policy through revision of the Design and Construction Standards. Page 44 of 297 Resolution - Regional Pavement Cut Policy- 1 RESOLUTION NO. 4165 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ADOPTING THE REGIONAL PAVEMENT CUT POLICY AND REVISION TO PASCO’S DESIGN AND CONSTRUCTION STANDARDS AND SPECIFICATIONS FOR PUBLIC WORKS IMPROVEMENTS. WHEREAS, the Cities of Richland, Kennewick, Pasco, and West Richland have worked together to establish standards to mitigate damage caused by removing pavement on public streets; and WHEREAS, on October 7, 2019, through Ordinance No. 4457, Council adopted the “Design and Construction Standards and Specifications for Public Works Improvements” (hereinafter referred to as, “Design and Construction Standards”); and WHEREAS, the Public Works Directors of all four Cities in the region believe it beneficial to develop a pavement cut policy that provides consistent standards for making repairs to cuts made in all streets within in the region; and WHEREAS, the engineering staff of all four Cities coordinated in the development of the Regional Pavement Cut Policy, which is now ready for approval by each city; and WHEREAS, adoption of the Regional Pavement Cut Policy allows for a revision of the existing pavement patch standard currently shown in Pasco’s Design and Construction Standards; and WHEREAS, the City of Pasco’s best interests are served by revising the current Design and Construction Standards to protect the City’s investment in public infrastructure by preserving the driving surface of public streets; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. That the Regional Pavement Cut Policy is hereby adopted and shall be included in the City of Pasco’s Design and Construction Standards. PASSED by the City Council of the City of Pasco, Washington this 4th day of April 2022. _____________________________ Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ _____________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 45 of 297 Pavement Cut Policy (1) To protect the city’s investment in its infrastructure, to preserve the life of its streets, and to provide an improved driving surface, a policy on cutting or excavation of paved public streets is established. Resurfaced Streets (2) For this policy, Resurfaced Streets are defined as those public streets that have been paved with asphalt within the past five (5) years, or resurfaced with a slurry seal, chip seal, cape seal or similar treatment less than one inch thick within the current calendar year. (3) No cutting or excavation of a Resurfaced Street is allowed, except for the following situations and at the discretion of the Public Works Director: (a) Emergencies that endanger life, property or public health and safety. (b) Interruption of essential utility service. (c) Work mandated by city, state, or federal legislation. (d) New service to a specific location cannot be reasonably provided by another route or using trenchless technology methods. (e) Minor core drilling or potholing (maximum 8-inch bell hole) to located utilities. (f) Other situations deemed by the Public Works Director to be in the best interest of the public. (4) If cutting and excavation of a Resurfaced Street is allowed under subsection (3), repairs and mitigation of allowed cuts or excavation shall meet the following requirements and per City Standard Specifications. (a) Lateral cuts perpendicular to the flow of traffic shall be have the pavement removed and replaced a minimum of 25 feet wide, centered on the trench cut, to include the full width of each travel lane or shoulder disturbed by the cut or excavation. Removal shall be by grinding pavement a minimum of 1.75 inches deep, or by saw cutting and excavation. Paving shall be accomplished with a paving machine. (b) Longitudinal cuts parallel with the flow of traffic shall have the pavement removed and replaced to include the full width of each travel lane or sho ulder disturbed by the cut or excavation. The minimum longitudinal patch length shall be 25 feet. Removal shall be by grinding pavement a minimum of 1.75 inches deep, or by saw cutting and excavation. Paving shall be accomplished with a paving machine. (c) For lateral patches less than 25 feet apart, work shall be incorporated into a single patch. For longitudinal patches, if the outside travel lane is patched, the adjacent paved shoulder shall also be replaced if less than four (4) feet of width remains (d) All patches when completed shall be at least as thick as the adjacent road section, and shall meet the City’s minimum road section thickness for the classification of the street, per Page 46 of 297 adopted City Standard Specifications. All trench backfill beneath the pavement shall be compacted crushed surfacing top course unless otherwise approved by the Public Works Director. (e) Minor core drilled holes and potholes shall be backfilled with control density fill (CDF), or as approved by the Public Works Director. (f) All patches shall have the perimeter joints of the patch crack sealed. (g) Disturbed traffic markings and striping shall be restored with approved in-kind materials. Other Streets (Not Resurfaced Streets) (5) All public streets that are not Resurfaced Streets as defined herein may be cut or excavated if utility work cannot reasonably be provided by another route or using trenchless technology (i.e. boring). Repairs and mitigation of allowed cuts or excavation shall meet the following requirements and p er City Standard Specifications. (a) Lateral cuts perpendicular to the flow of traffic shall be have the pavement removed and replaced a minimum of six (6) feet wide, centered on the trench cut, to include one-half width or all of each travel lane disturbed by the cut, to prevent a joint in the wheel path . There shall be a minimum of one foot of patch width beyond each side of the trench cut. (b) Longitudinal cuts parallel with the flow of traffic sh all have the pavement removed and replaced to include one-half width or all of each travel lane disturbed by the cut or excavation, to prevent a joint in the wheel path. There shall be a minimum of one foot of patch width beyond each side of the trench cut. Minimum length of the patch in a travel lane shall be 25 feet. (c) For lateral patches less than 25 feet apart, incorporate work into a single patch. For longitudinal patches, if the outside travel lane is patched, also replace the adjacent paved shoulder if less than four (4) feet of width remains. (d) All patches when completed shall be at least as thick as the adjacent road section, and shall meet the City’s minimum road section thickness for the classification of the street, per adopted City Standard Specifications. All trench backfill beneath the pavement shall be compacted crushed surfacing top course unless otherwise approved by the Public Works Director. (h) Minor core drilled holes and potholes shall be backfilled with control density fill (CDF), or as approved by the Public Works Director. (e) All patches shall have the perimeter joints of the patch crack sealed. (f) Disturbed traffic markings and striping shall be restored with approved in -kind materials. Page 47 of 297 All Streets (6) The completed surface of the pavement shall not vary more than ¼ inch from the lower edge of a ten-foot straightedge placed parallel with the flow of traffic. (7) The contractor or permit holder shall warrant the completed work for a period of two (2) years after City acceptance. (8) City will attempt to provide adequate notice to utility companies and adjacent property owners of upcoming construction, reconstruction and pavement surfacing work to allow them to place utility service stubs to their property prior to the pavement surfaci ng work. Page 48 of 297 BusmxarAva.1EMr snFAmxa|'Hm — vuuzs samcur mm 10 new:. Guava mun unis J4:BcuvAv|ov4 \M:r- um mm) muzwmmmnompe menu um mama mum sum smzncme 12'um an mam Fuzz uusuknczn was comm.cmR9«ua2nBvo«s\n.EronAuIwascHsnFALznBvwmm4 aammz um smmmnammmmamszmmsnaummmumeaa.cKWa«:»<sDr5AYIvEc(NmAcmPs may.RzmmwKa;Lw»«um»n1EIEsm1rA.cwKmBuR9«|u'amMuwA\Im km m?zvmunvz wwme mvs Fouomuelmulauvavmn ALuv|cKnr5s5u1E mama uzvlvs um ram sum az araai upuunoammamammn cmr or PAsco —STANDARD DETAIL TRENCH SURFACING REPAIRPage 49 of 297 AGENDA REPORT FOR: City Council May 11, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Zach Ratkai, Director Administrative & Community Services SUBJECT: *Resolution - Fourth Amendment to NW Baseball Ventures I, LLC for GESA Stadium Lease I. REFERENCE(S): Resolution Amendment No. 4 to Lease II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. ____, authorizing the City Manager to execute Amendment No. 4 to the term of the GESA Stadium Lease with the Northwest (NW) Baseball Ventures I, LLC. III. FISCAL IMPACT: Revenue: $35,734.34 annually IV. HISTORY AND FACTS BRIEF: Beginning in 2008, the current agreement between the City of Pasco and NW Baseball Ventures I, LLC (ownership entity for the Tri-City Dust Devils) was established and outlines lease perimeters for GESA Stadium. This agreement was subsequently amended and extended to December 31, 2022. Both parties have identified a need to modernize the complete lease agreement; however, both the COVID-19 Pandemic, along with a change in both league and affiliation has delayed the time each party will need to discuss a new agreement. V. DISCUSSION: It is agreed, based on the Force Majeure option outlined in Section 17.16 of the lease, to extend the lease, through the attached fourth (4th) amendment, for an additional year, ending on December 31, 2023. Page 50 of 297 Resolution – Amendment No. 4 GESA Stadium Lease - 1 RESOLUTION NO. ______ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE AMENDMENT NO. 4 TO THE TERM OF THE GESA STADIUM LEASE BETWEEN THE NORTHWEST BASEBALL VENTURE I, LLC. WHEREAS, pursuant to the City’s lease with the Northwest Baseball Venture I, LLC, at GESA Stadium, the “Premises”, dated January 1, 2008, the term of the lease to December 31, 2017; and WHEREAS, a first amendment was executed to the Premises lease on June 2, 2008, amending certain terms of the lease agreement; and WHEREAS, a second amendment to the Premises lease was executed on January 22, 2015, amending the annual rent fees; and WHEREAS, a third amendment to the Premises lease was executed on December 22, 2016, extending the lease term for another five years to expire on December 31, 2022; and WHEREAS, the City and the Northwest Baseball Venture I, LLC staff delayed negotiations on a new lease due to the timing of the COIVD-19 pandemic and have concluded that is it necessary to extend the lease agreement for one additional year, expiring on December 31, 2023. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. That the City Council of the City of Pasco approves the terms and conditions of the Amendment No. 4 to the GESA Stadium Lease between the Northwest Venture I, LLC and the City of Pasco; a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Section 2. The City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute said Amendment on behalf of the City of Pasco. Be It Further Resolved, that this Resolution shall take effect immediately. Page 51 of 297 Resolution – Amendment No. 4 GESA Stadium Lease - 2 PASSED by the City Council of the City of Pasco, Washington and approved as provided by law this ____ day of _______, 2022. _____________________________ Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 52 of 297 Fourth Amendment to Baseball Stadium Lease - 1 FOURTH AMENDMENT TO BASEBALL STADIUM LEASE THIS FOURTH AMENDMENT TO BASEBALL STADIUM LEASE is made this ____ day of May, 2022, to that certain Baseball Stadium Lease (“Lease”) dated January 14, 2008, and subsequent amendments thereto, by and between the City of Pasco, a Washington Municipal Corporation (City”), and Northwest Baseball Ventures I, LLC, a Washington limited company (the “Tenant”), and upon the timely election by Tenant to exercise the Force Majeure option provided in Section 17.16 of the Lease in order to extend the lease term another year. NOW, THEREFORE, in consideration of the mutual covenants contained herein, by the Fourth Amendment, the following terms shall be amended: 1. Section III. TERM shall be and hereby is amended and shall read as follows: Term. The term of the Lease shall commence on January 1, 2008 (the “Effective Date”) and shall expire on December 31, 2023 (the “Extended Term”). 2. Remaining Terms and Conditions. All remaining terms and conditions of the Baseball Stadium Lease, and all amendments thereto, not inconsistent with the Amendments provided by the Agreement, shall remain in full force and effect. If there are any conflicts between the term and provisions of the Lease, the First Amendment, the Second Amendment, the Third Amendment, the terms of this Fourth Amendment shall control. IN WITNESS THEREOF, City and Tenant have executed this Fourth Amendments on the day and year first above written. _____________________________ Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 53 of 297 AGENDA REPORT FOR: City Council May 4, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Zach Ratkai, Director Administrative & Community Services SUBJECT: *Resolution - Purchase and Sale Agreement - Heritage Boulevard Property I. REFERENCE(S): Proposed Resolution Purchase and Sale Agreement II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. _____, authorizing the sale of property at Heritage located Boulevar further, and, Washington Pasco, d, authorize the City Manager to execute the associated closing documents. III. FISCAL IMPACT: Revenue: $135,000 IV. HISTORY AND FACTS BRIEF: The City of Pasco is in ownership of a vacant parcel of land located at Heritage Blvd. The City was approached by a buyer for purchase. After research of the title and City records, there was determined to be no requirement for public ownership and the site does not represent a strategic or integral need for the City and was declared surplus to City need. This property was discussed with City Council during an Executive Session taking place on May 2, 2022. A decision to move forward with disposal and sa le of the property must be made in public session. The terms and conditions of the proposed sale are included in the attached Purchase and Sale agreement. Council may reject the subject offer, seek other offers, or accept the offer. Page 54 of 297 V. DISCUSSION: Based on the market value of the offer and the lack of public need or other interest in the parcel, staff recommends approval of the resolution and purchase and sale agreement as presented herein. Page 55 of 297 Resolution - Purchase Sale Agreement – Heritage Boulevard RESOLUTION NO. 4142 A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE SALE OF PROPERTY LOCATED AT HERITAGE BOULEVARD PASCO, WASHINGTON WHEREAS, the City of Pasco (City) owns vacant the property located on Heritage Boulevard Pasco, Washington; and more specifically described as, Franklin County Parcel No. 113.900.092. WHEREAS, an interested party, Lewis Place, LLC, has inquired of the City to sell the property for the purpose of developing a commercial site. WHEREAS, the City Council declared this property surplus to the city needs through Resolution No. 3934 on January 21, 2020. WHEREAS ¸ an analysis of the market indicated that the value appears to be reasonable for the sale of the property and which the City Council accepts as an appropriate price for the property. WHEREAS, the proposed use of the property advances the commercial development goals of the City; and WHEREAS, the City and Lewis Place, LLC negotiate selling price of $135,000. WHEREAS, the City and Lewis Place, LLC executed a Purchase & Sale Agreement (PSA), as well as Amendments 1 & 2 to the PSA, on May 2, 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council hereby ratifies the Purchase and Sale Agreement and Amendments 1 & 2 executed on May 2, 2022, to sell certain real property consisting of Parcel No. 113.900.092 located at Heritage Boulevard, Pasco, Washington, to Lewis Place LLC, for the purpose of building a single-family residential house according to the terms as described in the Purchase and Sale Agreement, and Amendments attached hereto as Exhibit A, and Be It Further Resolved that the City Manager is hereby authorized to execute all documents necessary to affect the sale of the property in accordance with the Purchase and Sale Agreement. Page 56 of 297 Resolution - Purchase Sale Agreement – Heritage Boulevard PASSED by the City Council of the City of Pasco, Washington, this ___day of _______ 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 57 of 297 0 1*$1*$ 0 2%3 2 4!5 6 7 7 7 8 9 0 9 0 0 3 3$ 1*$1 4 5 0 1 2 2 4 5 3 2 4 2 2 0 4 @5; 2 5 0 4 6 "7#2 3$ 1*$3$ 8 9:/A 2 76 4 3 3 3 3 3 7 2 2 1*$3$6 1*$1 1*$1 4 5; 3$6 1 1*$1 4 5; 66 6 1*$0 1*$0 1*$ 7 7 8 1*$2 ' 1*$B 1*$1 1*$1 4 5 1 2 ' 0 B 1*$1 B 1*$1 0=0= 0 0 7 7 8 2 ' B 1 1 4 5 1 2 ' 0 B 1 B 1 0=0= 6 26 4C 5 D D ' .7 7 0 7 E D April 7, 2022 April 19, 2022 Lewis Place LLC AND/OR Assigns City of Pasco 113900092 TBD Heritage Blvd, Pasco, WA 99301 120,000.00 2,500.00 X 3 X Chicago Title Chicago Title 15 days after Feasibility X X X X X X 60 X Lewis Place LLC AND/OR Assigns 2715 Saint Andrews Loop Pasco, WA 99301-3386 509)845-7199 Steve@b4land.com Lybbert Fielding Real Estate Andrew Lybbert 509)531-8012 contracts@lybbertfielding.com andrew@lybbertfielding.com 21015512 8873 City of Pasco Lybbert Fielding Real Estate, 6119 Burden Blvd, Ste C Pasco WA 99301 (509)531-8012 Lewis Place LLC - Andrew Lybbert 135,000 Ticor Title | Patty Sweetwood Ticor Title SVN | Retter & Co. Rob Ellsworth 509.430.2378 Rob@RobEllsworth.com Robin.Murphy@SVN.com 17790 20279 and 2nd Addendum DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BAD 04/30/2022 04/30/2022 DocuSign Envelope ID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 5/2/2022 5/2/2022 Page 58 of 297 0 1*$7 7 7 * 1*$1*$ 7 7 7 7 7 7 2 2 1 7 3 7 1*$3$ 0 0 4 5 41*$1 5 3$ 7 1*$1 3$ 0 0 3$ 1*$1 9 7&&&3 3 1*$1 1*$BF 7 7 3 7 (3 1*$1*$3*1*$1 3 2 7 3$ 1*$1 9 7&&&1*$1*$1 7 (7 3 1*$1*$ BF 3 1*$1 9 7&&&7 3 1*$ 1 3 1*$7 1*$1 1 2 3 A 7 C 4!5 !%2 2 7 G G7 #+ 3H 7 #+3* 2 3H 7 #+ 3H 7 *3! 3* G I I&7 3$ 7 7 3 3 3* C 7 3 3 7 1*$1 C 9 6 A 7 3 3+ 3 3+6 7 7 7 7 7 1*$3+ 1*$ 3 3$ 1*$7 !%3 3$ 3 3 3$ 0 3*$ 7 0 3*$ 3 7 3 0 6 C 1*$7 2 7 B 1*$7 1*$ 7 7 7 1 7 1*$1*$1 7 3 7 !%2 2 2 2 3 3+ 0 7 1*$2 7 7 *1*$ G D I F G D I F G D I F G D I F G& G G G GG G G GD GI GF G 1*$0 1*$0 0 0 4C 5 D D ' .7 7 0 7 E D Lewis Place LLC - DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BADDocuSignEnvelopeID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 59 of 297 0 3 7 3 1*$7 +3 7 3 1*$ 3 3+ 2 6 3 3$ 0 J#+K 3+0 7 7 +7 7 2 7 7 +7 1*$3 F6&& 0 7 2 7 *1*$ 1*$ 3$ 2 7 7 2 3 3 1*$7 (%3 3+$ ( 3%6 2 1*$3 B:2 7 B:2 3 7 2 4 5 3$ 2 3* 7 B:2 2 2 2 6 6 2 6 0 1*$B% 3$ 3+2 7 7 7 3+3 1*$1*$7 7 7 * 3 7 #+ 7 3 3$7 1*$7 7 3 7 3 A 7 1*$3* I& 4 @ ,A 5 1*$2 7 3 3 3 3 3 7 3*3 3 0 1 1*$1 C 4 5 3+3 7 7 7 1*$2 C 7 7 7 7 1 1*$1 7 7 8 6 :/C A 2 2 4'<)5 2 4J K5 A 2 7 2 7 #+ 7 1*$ 1*$4 J K5 7 1*$ 4 J K5 1*$3 7 3 1*$ D I F G D I F D& D D D DG D D DD DI DF I& I I I IG I I ID II IF F& F F F FG F F FD FI FF G D I F 1*$0 1*$0 0 0 4C 5 D D ' .7 7 0 7 E D Lewis Place LLC - DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BADDocuSignEnvelopeID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 60 of 297 G 0 6 4 0 4 5 3 3 3$ 1*$3 3$ 7 3$ 1 7 1 1*$ 3 3$ 3 3$ 1*$7 3$ 1*$1 7 1*$1 0 7 !* D#7 ,B1 B1 C 7 3+7 3 1*$1*$1 1 3 B 4 5 !%6 4 5 B 3 1*$ 1 1*$1 3 1 1 B 4 5 1*$1 1 B 4 B 5 7 7 B 3$ ! 0 0 A 7 2 F6&& 2 0 7 7 7 2 2 7 7 2 0 7 7 7 7 2 0 7 (%7 7 7 + 7 7 !%2 7 7 +7 3 7 7 7 2 2 7 7 7 4 5 3$ 7 7 3 3 7 2 6 2 3 3 3$ 1*$ 0 2 0 1*$7 1*$7 (7 * 3$ J K 1*$ 1*$7 (2 7 7 7 D7 !%6 2 4 L5 3 2 3+ @+ 0 6 7 7 4 5 : 2 3+7 435 3 1*$ 7 4 5 3 7 4 5 3+ 64 6 @ :1*$ 3+1*$ 7 1*$7 7 3+ 2 3 3$ F6&& 2 0 7 * 3 3$ 7 3$ 3 7 3 H 7 3 1*$ G D I F G D I F G D I F G& G G G GG G G GD GI GF G D I F 1*$0 1*$0 0 0 4C 5 D D ' .7 7 0 7 E D Lewis Place LLC - DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BADDocuSignEnvelopeID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 61 of 297 0 A 7 C 7 !%3 7 F6&& 2 7 *3 3$ 7 3 7 3 H 7 3 1*$ 6 2 7 2 3$ 7 2 1*$1 7 1*$1 0 1 7 1*$1 1 4 5 1*$1 1 4 5 1*$1 1 7 1 0 1 7 1 1 4 57 1 1 4 5 1 1*$1 1 7 3 1*$ 0 1 7 1 4 57 1 4 5 3 1*$1 1 3 3 1*$ 0 1 7 1 4 57 1 4 5 3 J % K 00 1*$ 1 3 3 1 1*$1 1*$3$ 1 1*$1 1*$3$ 1 1*$1 7 3+7 4!5 3+$ 3*4!5 4!5 3$ 1*$1 7 3+1*$3 7 2 1*$3 3 3 2 0 3 7 3*4 5 1*$3$ 7 1 1*$1 1*$7 7 ! 1*$7 3*3 6 3* 3+3 3*7 3 7 % 3*3 3$ C 7 7 !%7 !7 3 3 3* 7 !3 1*$1*$7 7 7 7 3 7 1*$ 3 1*$1*$ 1*$3 3+1*$3 1*$ 3 3 2 0 7 3 1*$3 1*$3 1*$7 + 3 4'<)57 7 !* 3 1*$3 1*$3+$ 1*$ 3 3 2 4 76 4 3 3 7 3 3 G 3$ !*7 3 1*$ G D I F D& D D D DG D D DD DI DF I& I I I IG I I ID II IF F& F F F FG F F FD FI FF G D I F G 1*$0 1*$0 0 0 4C 5 D D ' .7 7 0 7 E D Lewis Place LLC - DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BADDocuSignEnvelopeID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 62 of 297 0 B 0 6 1*$ 1 3 1*$ 1*$ 7 3 1*$ 6 0 1*$7 2 7 1*$7 1 1 3+3+ 1 2 7 3$ !*1 7 1 7 ?* 3*7 7 7 7 7 7 3 7 3 3H 3 3+C 7 !*7 +7 7 3+7 ! 3 C 1 2 C 7 7 1*$ 1*$ C 3 C 3 3$ 1*$ 1*$1*$7 7 3* 7 7 7 7 +7 3+1*$ 1 7 !*7 3*1 3 3+ 3$ 2 H* B D I F G D I F G D I F G& 1*$0 1*$0 0 0 4C 5 D D ' .7 7 0 7 E D Lewis Place LLC - DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BADDocuSignEnvelopeID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 63 of 297 0/1 2 345 46 34 46 34 46 1 5/.7//$ .-/ 1 589/7 1 1+.+:$ 589/1 1 589/1 1 @; 7 3A!6 B B 1 B .C April 7, 2022 Lewis Place LLC AND/OR Assigns City of Pasco TBD Heritage Blvd, Pasco, WA 99301 Seller agrees to pay Buyer's Broker, Andrew Lybbert with Lybbert Fielding Real Estate, a commission equal to 6% of the gross sales price. Lybbert Fielding Real Estate, 6119 Burden Blvd, Ste C Pasco WA 99301 (509)531-8012 Lewis Place LLC - Andrew Lybbert Seller agrees to sell the Property on the terms and conditions herein, and further agrees to pay a commission in a total amount computed in accordance with the listing or commission agreement. If there is no written listing or commission agreement, Seller agrees to pay a commission of 6 % of the sales price or $ . The commission shall be apportioned between Listing Firm and Selling Firm as specified in the listing or any co-brokerage agreement. If there is no listing or written co-brokerage agreement, then Listing Firm shall pay to Selling Firm a commission of 3 % of the sales price or $ . Seller assigns to Listing Firm and Selling Firm a portion of the sales proceeds equal to the commission. If the earnest money is retained as liquidated damages, any costs advanced or committed by Listing Firm or Selling Firm for Buyer or Seller shall be reimbursed or paid therefrom, and the balance shall be paid one-half to Seller and one-half to Listing Firm and Selling Firm according to the listing agreement and any co-brokerage agreement. Seller and Buyer hereby consent to Listing Firm and Selling Firm receiving compensation from more than one party and irrevocably instruct the Closing Agent to disburse the commission(s) directly to the Firm(s). In any action by Listing Firm or Selling Firm to enforce this Section, the prevailing party is entitled to reasonable attorneys' fees and expenses. Neither Listing Firm nor Selling Firm are receiving compensation from more than one party to this transaction unless disclosed on an attached addendum, in which case Buyer and Seller consent to such compensation. The Property described in attached Exhibit A is commercial real estate. Notwithstanding Section 44 above, the pages containing this Section, the parties' signatures and an attachment describing the Property may be recorded. DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BAD 04/30/2022 DocuSign Envelope ID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 5/2/2022 Page 64 of 297 Exhibit B DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BADDocuSignEnvelopeID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 65 of 297 Second Amendment To Purchase & Sale Agreement Commercial Brokers Association ALL RIGHTS RESERVED CBA Form PSA | Addendum to PSA Rev. 7/2020 Page |1 1 The following is part of the Purchase and Sale Agreement with Reference Date April 7, 20221between Lewis Place LLC &/or Assigns (“Buyer”) and City of Pasco (“Seller”) regarding the sale of the property located at Franklin Tax Parcel 113.900.092 City of Pasco, Franklin County, Washington (the “Property”). IT IS AGREED BETWEEN THE BUYER AND SELLER AS FOLLOWS: 1.Offer is subject to Pasco City Council’s formal approval to surplus subject property as well as Council’s approval of this contract. 2.Site not allowed to be developed for a residential use. 3.The Purchaser acknowledges that the purchase price and consideration given by City are related to the City's goals of economic development and lost opportunities for development would arise if Purchaser fails to begin construction of the anticipated development. 4.Unless the failure to commence construction is related to the items identified in Warranties Section, below, if the Purchaser fails to submit an application to City for approval of a site plan and building plans consistent with subsection (a) above, within thirty-six (36) months of Closing, the City reserves the right to reclaim title to this Property. If the Purchaser does not initiate construction within forty-eight (48) months of Closing, City reserves the right to reclaim title to this Property. The City shall reclaim this Property by refunding 90% of the original Purchase Price as determined in Paragraph 5 of PSA. The City will not assume any liability for expenses incurred by Purchaser in conducting this transaction. Purchaser agrees to re-convey title to the City within sixty (60) days of receipt of notification of City's decision to seek reconveyance of Property. This reversionary right is exclusive to the City and shall be exercised at the sole discretion of the City. 5.This reversionary right survives sixty (60) months after closing or until such time as building commences, whichever is earlier. The City shall be under no obligation to exercise this reversionary right. This reversionary clause shall survive the delivery of the Deed, but shall automatically lapse upon expiration of the time periods herein and City shall execute such further documents as Purchaser shall request to release same. Warranties; Indemnity. City makes the following representations and warranties, which shall be deemed remade as of the closing date: 1.The Property and improvements are not in violation of any applicable covenant, condition or restriction or any applicable statute, ordinance, regulation, order, permit, rule or law, including, without limitation, any building, private restriction, zoning or environmental restriction. 2.Other than the obligations of record, there are no obligations in connection with the Property, which will be binding upon Purchaser after closing other than liability for the payment of real estate taxes and utility charges. 3.There are no claims, actions, suits or governmental investigations or proceedings existing or, to the best of City's knowledge, threatened against or involving City or the Property (including, without limitation, any condemnation or eminent domain proceeding or matter related to the formation of or assessment by a local improvement district) and City has received no written notice thereof. 4.All insurance policies now maintained on the Property will be kept in effect, up to and including the closing. City has received no notice from any insurance company or rating organization of any defects in the condition of the Property or of the existence of conditions which would prevent the continuation of existing coverage or would increase the present rate of premium. 5.There are no leases affecting the Property. 6.All such representations and warranties shall be reaffirmed by City as true and correct as of the Closing Date and shall survive the Closing for a period of two (2) years. If, prior to closing, City becomes aware of any fact or circumstance which would change a representation or warranty, then City will immediately give notice of such changed fact or circumstance to Purchaser, but such notice shall not relieve the City of its obligations hereunder. Buyer Date Buyer Date Seller Date Seller Date DocuSign Envelope ID: C72D8CC9-74FE-4EB8-AB60-6F3E2B266BAD 04/30/2022 DocuSign Envelope ID: 9130B688-FE77-44D6-AA28-89D820A7E777 5/2/2022 Page 66 of 297 AGENDA REPORT FOR: City Council May 10, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Rick White, Director Community & Economic Development SUBJECT: *Resolution - Setting a Public Hearing Date to consider the East Lewis Place ROW Vacation (VAC 2022-003) I. REFERENCE(S): Proposed Resolution Overview Map Vicinity Map Vacation Petition II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No._____, setting 7:00 P.M., Monday, June 6, 2022 as the time and date to conduct a public hearing to consider vacating right-of-way for East Lewis Placeformerly primary State Highway No. 3, Pasco to Attalia. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: The adjacent property owners have petitioned for the vacation of a portion of East Lewis Place right-of-way (formerly primary State Highway No. 3, Pasco to Attalia) as established per Washington State Department of Transportation (WSDOT). The petition requires the City Council to fix a public hearing to consider the vacation request. The earliest regular City Council meeting available for a public hearing which provides the statutory 20-day hearing notice is June 6, 2022. V. DISCUSSION: Page 67 of 297 Per the Pasco Municipal Code (PMC) Chapter 12.40, the Council may require compensation for vacated rights-of-way. The compensation involves obtaining a title report and appraisal of value. However, the compensation and the requirements attached thereto may be waived if one or more of the following conditions apply: The vacation is initiated by the City Council by Resolution; The vacation is at the request of the City; The right-of-way to be vacated was previously determined by the City Council not to be essential to public traffic circulation and available for vacation; The grant of substitute right-of-way which has a value as a right-of-way at least equal to that right-of-way to be vacated; and The resulting benefit to the community of the project requiring the vacation outweighs the appraised value of the right-of-way to be vacated. The above considerations of the PMC and any public testimony or comments can be be discussed at the June 6th public meeting date. Page 68 of 297 Resolution - Setting PH for VAC 2022-003 - 1 RESOLUTION NO. _________ A RESOLUTION SETTING 7:00 P.M., MONDAY, JUNE 6, 2022, AS THE TIME AND DATE FOR A PUBLIC HEARING TO CONSIDER THE VACATION OF A RIGHT-OF-WAY FOR EAST LEWIS PLACE, FORMERLY PRIMARY STATE HIGHWAY NO. 3, PASCO TO ATTALIA. WHEREAS, from time to time in response to petitions or in cases where it serves the general interest of the City, the City Council may vacate streets and alley rights-of-way; and WHEREAS, a petition for vacation of a portion of East Lewis Place right-of-way (formerly primary State Highway No. 3, Pasco to Attalia) as established per Washington State Department of Transportation (WSDOT) Pasco to Attalia plans, Contract No. 3908, dated June 6, 1950, for Right-of-Way, Sheet 2 of 11, Deed filed under Franklin County Auditor's File Number 133353, of which a portion was vacated by City of Pasco Ordinance No. 4102 filed under Franklin County Auditor's File Number 1800771, located in the Southwest Quarter of the Northwest Quarter and the Northwest Quarter of the Southwest Quarter of Section 27, Township 9 North, Range 30 East of the Willamette Meridian, City of Pasco, Franklin County, Washington, by owners of more than two-thirds abutting the part of the right-of-way to be vacated, has been submitted to the City; and WHEREAS, the vacation process, by petition application, provided in PMC Chapter 12.40 requires a title report, an appraisal of value, and compensation unless waived by City Council; and WHEREAS, pursuant to PMC 12.40.120(2), compensation for vacated rights-of-way, an appraisal and title report may be waived if one or more of the following are applicable: the vacation is initiated by Council Resolution; the vacation is at the request of the City; the right-of- way to be vacated was previously determined by Council not to be essential to public traffic circulation is available for vacation; the grant of a substitute right-of-way has value as a right-of- way at least equal to the right-of-way to be vacated; or the resulting benefit to the community of the project requiring vacation outweighs the appraised value of the right-of-way to be vacated; and WHEREAS, the City staff is requesting that Council make a determination concerning whether to waive the requirements of a title report, appraisal of value, and compensation pursuant to PMC 12.40.120(2) after holding a public hearing; and WHEREAS, a survey of the land proposed to be vacated has been provided by the applicant; and WHEREAS, PMC 12.40.040 requires public hearings on vacations to be fixed by Resolution, and to provide notice for such hearing which shall occur no later than 60 days after, nor earlier than 20 days after, the passage of this Resolution setting a public hearing. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Page 69 of 297 Resolution - Setting PH for VAC 2022-003 - 2 Section 1. Notice of Hearing. That a public hearing to consider vacating the following as described and depicted in the attached Exhibit A, will be held before City Council of the City of Pasco in the Council Chambers at 525 N. Third Avenue, Pasco, Washington, at the hour of 7:00 p.m., on the 6th day of June 2022. Section 2. That the City Clerk of the City of Pasco give notice of said public hearing as required by law. Section 3. That the City Council will further decide whether to waive the requirements for an appraisal, title report, and compensation at the June 6, 2022, public hearing. PASSED by the City Council of the City of Pasco, Washington, this _____ day of __________________ 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 70 of 297 A PORTION OF EAST LEWIS PLACE RIGHT OF WAY (FORMERLY PRIMARY STATE HIGHWAY NO. 3, PASCO TO ATTALIA) AS ESTABLISHED PER WASHINGTON STATE DEPARTMENT OF TRANSPORTATION (WSDOT) PASCO TO A TTALIA PLANS, CON TRACT NO. 3908, DA TED JUNE 6, 1950, FOR R. OF W. SHEET 2 OF 11, DEED FILED UNDER FRANKLIN COUNTY AUDITOR'S FILE NUMBER 133353, OF WHICH A PORTION WAS VACATED BY CITY OF PASCO ORDINANCE NO. 4102 FILED UNDER FRANKLIN COUNTY AUDITOR'S FILE NUMBER 1800771, LOCATED IN THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER AND THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27, TOWNSHIP 9 NORTH, RANGE 30 EAST OF THE WILLAMETTE MERIDIAN, CITY OF PASCO, FRANKLIN COUNTY, WASHINGTON DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 27, MARKED BY A 3 INCH BRASS CAP AT GROUND SURFACE STAMPED "WSDOT SURVEY MONUMENT S21-S22-S27-S28 DO NOT DISTURB"; THENCE SOUTH 01 ·02'13" EAST ALONG THE WEST LINE OF SAID SECTION 27 A DISTANCE OF 2,641.62 FEET TO THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER OF SAID SECTION 27, MARKED BY A 2.5 INCH BRASS CAP IN CASE WITH A CENTER PUNCH ONLY; THENCE NORTH 89.17' 46" EAST ALONG THE SOUTH LINE OF SAID NORTHWEST QUARTER OF SECTION 27 A DISTANCE OF 1,325.61 FEET TO THE INTERSECTION WITH THE EAST LINE OF SAID SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 27 AND TRUE POINT OF BEGINNING; THENCE NORTH 01 °16'20" WEST ALONG SAID EAST LINE A DISTANCE OF 29.54 FEET TO THE INTERSECTION WITH THE NORTH RIGHT OF WAY MARGIN OF SAID EAST LEWIS PLACE, MARKED BY A BENT 1 /2 INCH REBAR WITH NO CAP; THENCE ALONG SAID NORTH RIGHT OF WAY MARGIN AS COMPUTED BY SAID CITY OF PASCO ORDINANCE NO. 4101 THE FOLLOWING COURSES: THENCE SOUTH 89°24' 42" WEST A DISTANCE OF 172.50 FEET TO AN ANGLE POINT, MARKED BY A TACK AND WASHER STAMPED "LS 12624" IN A 1 INCH OUTER DIAMETER IRON PIPE, PER THAT SURVEY RECORDED UNDER FRANKLIN COUNTY AUDITOR'S FILE NUMBER 383969; THENCE NORTH 84°55'24" WEST A DISTANCE OF 122.07 FEET; THENCE SOUTH 89"37'05" WEST A DISTANCE OF 550.00 FEET; EXHIBIT A LEGAL DESCRIPTION THENCE SOUTH 89.19'21" WEST A DISTANCE OF 481.64 FEET TO THE INTERSECTION WITH THE SAID WEST LINE OF SECTION 27; THENCE LEAVING SAID NORTH RIGHT OF WAY MARGIN SOUTH 01·02•13" EAST ALONG THE SAID WEST LINE OF SECTION 27 A DISTANCE OF 10.00 FEET TO A LINE THAT IS 30 FEET NORTHERLY AND PARALLEL TO THE CENTERLINE OF SAID EAST LEWIS PLACE; THENCE ALONG SAID OFFSET LINE THE FOLLOWING COURSES: THENCE NORTH 89 °19 21" EAST A DISTANCE OF 469.95 FEET TO THE BEGINNING OF A SPIRAL CURVE OFFSET TO THE RIGHT; THENCE SOUTH 89 °40'30" EAST ALONG THE CHORD OF SAID SPIRAL CURVE OFFSET A DISTANCE OF 301.51 FEET TO A POINT ON THE ARC OF A NON TANGENT CURVE TURNING TO THE RIGHT, HAVING A RADIUS OF 2,894.94 FEET; THE RADIUS POINT OF WHICH BEARS SOUTH 02 °19'21" WEST; THENCE ALONG SAID CURVE, HAVING AN ARC LENGTH OF 385.57 FEET, WITH A DEL TA ANGLE OF 07"37'52", A CHORD BEARING OF SOUTH 83°51' 43" EAST, AND A CHORD LENGTH OF 385.29 FEET; THENCE SOUTH 80 °02'47" EAST A DISTANCE OF 175.37 FEET TO THE INTERSECTION WITH EAST LINE OF SAID NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27; THENCE NORTH 01 °16'20" WEST ALONG SAID EAST LINE A DISTANCE OF 48.47 FEET TO THE TRUE POINT OF BEGINNING. HAVING AN AREA OF 30,207 SQUARE FEET, 0.69 ACRES, MORE OR LESS. SUBJECT TO EASEMENTS, RESERVATIONS AND RESTRICTIONS OF RECORD. 04/05/2022 PBS Engineering and DRAWN BY: ROP/DWW SCALE: N/A DATE: 04/05/2022 Environmental Inc. pbsusa.com CHECKED BY: ADM PROJECT NO.: 66380.000 SHEET _1_ OF _2_ Page 71 of 297 EXHIBIT B SKETCH LOCATED IN THE SW 1/4 OF THE NW 1/4 AND THE NW 1/4 OF THE SW 1/4 OF SECTION 27, TOWNSHIP 9 NORTH, RANGE 30 EAST OF THE WILLAMETTE MERIDIAN, CITY OF PASCO, FRANKLIN COUNTY, WASHINGTON 25.00' !RR ESMT VARIABLE WIDTH RIGHT OF WAY ()o.,...o"?)1 '\ �\1�� I I PER AFN 109056 VACATED PER CITY OF PASCO "?)----1 /,,-S \..\..C J 10' UTILITY ESMT S �\ I + 0-ORDINANCE NO. 4102 (AFN 1800771) ,?� \\ ?\..p..C 9,s"?)<c?-\PER CITY OF PASCO � -----r----------------------------(_\..t.\N6 �r"� \ JoRDINANCE NO. 4102 (AFN 1800771) l ------s\N'v .!._ __ S89'19'21"\/I{ 481.64' _ _ , _----- __--- - --ss9·37 '05"w 550.00 �Ns4·55•24 "w 15' !RR PER AFN ESMT 109056 ·II lll\--1---------------------,---""'""' r---.:....:.;-�07' S89'24 ' 42"W __ ,.....,..v1, 30,207 S.F., oi)-----------.l..-(:172.50' �-�-=---=-=-==-�--�-�-=--=-�-;--;-=-=---��:-6�L ��3iA8�\�. 5s°7r•-:-=::::-,-. �R�l�G:H:T�O=F WAY VACATION PORTION\... · --· --· -- . -R-2s9 N89' 17' 46"E 1325.6 1' - 6:7'37�i'f, --------- CJ) FOUND 3" BRASS CAP 5 CHORD OF SPIRA1.----,, ,,.----..---�H= 385.29'CURVE OFFSET \ / ----S89'40'30"E \ / EDGE OF PAVEMENT 301.51' I I AT SURFACE: "WSDOT SURVEY MONUMENT S21-S22-S27-S28 DO NOT DISTURB" CD FOUND SCREW IN 2" PIPE FILLED WITH CONCRETE IN CASE, MARKING THE E. LEWIS PLACE CENTERLINE PER WSDOTPASCO TO A TTALIA PLANS, CONTRACT NO. 3908, DATED JUNE 6, 1950, FOR R. OF W. SHEETS 2 & 3 OF 11 (D FOUND 2.5" BRASS CAP IN CASE WITH A CENTER PUNCH ONLY, MARKING THE QUARTER CORNER FOUND SCREW IN CONCRETE IN 2" PIPE WITH NO TAG IN CASE, HELD FOR EAST LEWIS PLACE CENTERLINE PER WSDOT G)PASCO TO ATTALIA PLANS, CONTRACT NO. 3908, DATED JUNE 6, 1950, FOR R. OF W. SHEETS 2 & 3 OF 11,BEGINNING OF SPIRAL CURVErs' END OF SPIRAL CURVE, BEGIN SIMPLE CURVE PER WSDOT PASCO TO ATTALIA PLANS, CONTRACT NO. 3908, DATED� JUNE 6, 1950, FOR R. OF W. SHEETS 2 & 3 OF 11 POINT OF TANGENCY ESTABLISHED PER WSDOT PASCO TO ATTALIA PLANS, CONTRACT NO. 3908, DATED JUNE 6, G)1950, FOR R. OF W. SHEETS 2 & 3 OF 11 AND WSDOT SR 12 EAST LEWIS STREET INTERCHANGE ASCONSTRUCTED PLANS, CONTRACT NO. 4916, DATED 1 /95, SHEET 33 OF 139 AND BEST-FITTED TO MONUMENTSFOUND MAG NAIL IN CONCRETE IN 2" PIPE WITH T A G: "E 1663.14 PC" IN CASE, HELD FOR EAST LEWIS PLACE I Cf) CENTERLINE PC PER WSDOT SR 12 EAST LEWIS STREET INTERCHANGE A S CONSTRUCTED PLANS, CONTRACT NO.1 Scale 1" = 80' ,_I I i I I ;-----­--. 4916, DATED 1 /95, SHEET 33 OF 139 0 40 80 160 04/05/2022 FOUND BENT 1 /2" REBAR WITH NO CAP, ORIGIN UNKNOWN, HELD AS G)REPLACEMENT OF ORIGINAL PROPERTY CORNER MARKER SET WITH GOLLADAY SURVEY, AFN 383969, SHOWN AT SPINHOLE rg"\ FOUND & HELD TACK AND WASHER: "LS 12624" IN 1" O.D. IRON PIPE, '-._.:!__,,J PER GOLLADAY SURVEY, AFN 383969 �PBS PBS Engineering and Environmental Inc. pbsusa.com DRAWN BY: ROP/DWW SCALE: 1" = 80' DATE: 04/05/2022 CHECKED BY: ADM PROJECT NO.: 66380.000 SHEET _2_ OF _2_ Page 72 of 297 E HELENA ST ELEWISST EGE OR G E ST TIERRAVIDA L N MANZANITALNHERITAGE BLVD N VEN TU R ER D HARVESTCTCANADA CTNAVERYAVEE ALVINA ST E ADELIA ST ES T R ELLADRN PENNIE LNSEMILLA CT SPRU C E S TLUNA DRWUS 1 2 T OP K R A MP FORTALEZADRE U S12TO P K R AMPVENTURE PL S C O MMERCIALAVE U S 1 2 E N C O M M E R C I A L A V E LEWIS TO US 12 RAMPE U S 1 2 W E LEWIS PL Lewis Place LLC Benton County WA, Maxar, Microsoft / 0 430 850 1,300 1,700210 Feet 0 430 850 1,300 1,700210 Feet Overview Map SITE Item: ROW Vacation - East Lewis Place Applicant: Steven Bauman c/o Lewis Place LLC File #: VAC 2022-003 Page 73 of 297 U S 1 2 W U S 1 2 E LE W I S T O U S 1 2 R A M P E E LEWIS PL Lewis Place LLC Benton County WA, Maxar, Microsoft / 0 140 280 420 56070 Feet 0 140 280 420 56070 Feet Vicinity Map SITESITE Item: ROW Vacation - East Lewis Place Applicant: Steven Bauman c/o Lewis Place LLC File #: VAC 2022-003 Page 74 of 297 Fee:$300 Community & Economic Development CITY OF PASCO STREET/ALLEY VACATION PETITION Master File # ------Date Submitted: 04I06l2022 We the undersigned, owners of two-thirds of the privately-owned abutting property, hereby petition the City Council of the City of Pasco to vacate the following described street/alley rights-of-way: A portion (0.69 acres) of East Lewis Place Right of Way. (Formerly primarily State Highway No. 3, Pasco to Attalia) Name: Lewis Place, LLC Address: 2715 St. Andrews Loop, Suite A, Pasco, WA 99301 Applicant/ Phone: Owner 1 509-845-7199 Email: steve@b4land.com & ann@b4land.com Name: Address: Owner 2 Phone: Email: Signature: (Please see reverse side) Updated April 2019 Page 75 of 297 Name: Address: Owner3 Phone: Email: Signature: Survey Title Report (if not waived) Fee of $300 Page 76 of 297 AGENDA REPORT FOR: City Council May 9, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Steve Worley, Director Public Works SUBJECT: East UGA Sewer Local Improvement District (LID) Expansion Assessment Alternatives I. REFERENCE(S): LID Boundary Figures and assessment rolls for Alternatives A and B. Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Estimated Project Costs: Alternative A (Original Proposal): $25,404,000 LID Assessments Alternative B: $21,494,000 LID Assessments IV. HISTORY AND FACTS BRIEF: The East UGA Sewer Local Improvement District (LID) project has been developed to provide the opportunity to serve all parcels within the expanded UGA east of Road 68. This area encompasses several large parcels (10 acres or more, with short- and long-term development plans), as well as other smaller parcels located immediately east of Road 68 between Kau Trail and Deseret Road. City staff held a series of meetings with landowners and representatives of the parcels included in the originally proposed LID boundary. While feedback was positive in the first three meetings held, during the fourth and final meeting, held in the evening to accommodate those property owners that work during the day, a group of property owners expressed concerns with the propose d sewer Page 77 of 297 improvements and the financial burden this would impose on them and their neighbors. Property owners in the neighborhood between Kau Trail Road and Deseret Road own properties that are 1 to 5 acres in size. Some have houses on their lots and thus have functioning septic systems. The proposed LID is less attractive to these owners as they do not have a desire to further develop their parcels anytime soon. These property owners also expressed their opposition of annexation into the City. The majority of those in attendance at the first three meetings expressed support for the LID project and annexation into the City. Preliminary assessments for all property owners within the proposed LID area have been developed based on a combination of parcel area and projected sewage, in terms of 'flow' generated by each parcel. The projected sewer "flow" is based on the land use for each parcel. The Land Use designations are in accordance with the latest City’s Comprehensive Plan. For clarity, these City land uses may be different from current zoning and current Franklin County land uses. On May 2, 2022, Council approved Resolution No. 4174, declaring its intent to order the improvements of the East Urban Growth Area Expansion and setting a hearing for 7 pm May 23, 2022, to consider the creation of a Local Improvement District (LID) to consider the necessity, location, scope, LID boundaries, design and cost of improvements, and the assessment of the cost and expense of carrying out those improvements against the properties specially benefited by the proposed improvements. Property owners were notified via mail and invited to provide written comments to the City Clerk or appear at the May 23 Public Hearing regarding the proposed LID formation. Formation of the LID is also scheduled for the May 23rd meeting, should Council determine doing so as appropriate. V. DISCUSSION: Subsequent to the May 2nd Council meeting, City elected officials and staff received comments from several property owners in the proposed LID. These comments resulted in the evaluation of an alternate sewer LID proposal for consideration by Council. The use of this workshop meeting is to better familiarize Council with the original proposal and to familiarize Council with the aforementioned alternative. The two LID alternatives are as follows: Alternative A (Original Proposal): Page 78 of 297 • This alternative includes all of the UGA expansion area east of Road 68, north of Burns Road, and the south half of the Reimann Industrial Center. • The proposed improvements consist of Glade Road Lift Station and force main, gravity sewer trunk mains extending from Glade Road to Road 68, including sewer mains along Deseret Road, Melody Lane and Kau Trail Road, to provide service to all parcels included in the LID boundary. • Cost for the project is to be assessed in its entirety to LID participants. Alternative B: • Under this alternative the LID boundary is identical to Alternative A above, except the neighborhood between Deseret Road and Kau Trail Road would be excluded. • Sewer mains improvements proposal along Melody Lane and Kau Trail Road would be eliminated and Deseret Road gravity sewer main would only be extended partially. • Cost for the project would be assessed to the LID participants. No assessment for the Deseret Road/KauTrail neighbors. Figures and preliminary assessment rolls for each alternative are included in this packet. Staff is seeking feedback from Council on the two alternatives. The Resolution of Intent essentially set a public hearing to receive public comment on Alternative A. In that the Council has the ability to modify the proposed LID following public comment, with Council's concurrence, staff is p roposing to also introduce at the hearing Alternative B, so that the public would have the benefit of providing comment on that alternative as well. Page 79 of 297 City of Pasco East UGA LID May 16, 2022 City Council Meeting Intent to Form LID Preliminary Assessment Estimates Description Alternative A Alternative B LID Cost $25,404,000 $21,494,000 Future City Cost $0 $0 8:43 AM 5/10/2022 J:\Data\PSC\21-0300\20 Design\Parcel Analysis\PSC Landowner Table.xlsx[May16,2022Costs]Page 80 of 297 [SL [SL [SL [SL &&R &&R &&R &&R&&R&&R&&R&&R &&R&&R&&R &&R &&R &&R&&R&&R&&R&&R&&R &&R &&R &&R [SL N4THAVEROAD 68ANTIGUA DR THREE RIVERS D R SANDIFUR PKWY ROAD 76FENWAY DR WRIGLEY DR ROBERTWAYNEDRS IRO CC O DRROAD 44SANTAFELNH U D SO N DRROAD 84S AN TA C R U Z LN QUADRA DR KAU TRAIL RD LAREDO DR CO L UMB I A R I V E R RDROAD 42 NARTESIA DR SAHARA DR SINAI DRROAD 52BURDEN BLVD ROBERTA RD ROAD 60CONVENTION DRN RAILROADAVEIVY RD BURNS RD OVERTON RD ROAD 36 NJANET RD ROAD 68 NHILLTOP DR FOSTERW ELLS RDNORTHWEST C O M M O N S DRCHA P E L H I L L B L V D I-18 2 E H O M E R U N RDCLARK RD I-18 2 W GLADE NORTH RDTAYLORFLATSRDGlade Road LS ROAD 36 LS THREE RIVERS LS MADISON PARK LS NW COMMONS LS PUD #1 (FRANKLIN COUNTY) DT WAREHOUSE LLC MARS MARS PORT OF PASCO LAMB WESTON PORT OF PASCO COLUMBIA WATERS FARM LLC MULLEN (ETAL)COLE ALFORD A B LIVING TRUST COLUMBIA WATERS FARM LLC OLBERDING OLBERDING PASCO SCHOOL DISTRICT NO. 1 PASCO SCHOOL DISTRICT NO. 1OLBERDING PRO MADE CONSTRUCTION LLCOLBERDING OLBERDINGOLBERDING OLBERDING OLBERDING FARM 2005 LLC DEPARTMENT OF NATURAL RESOURCES PORT OF PASCO USA PORT OF PASCO COLUMBIA WATERS FARM LLC COLUMBIA WATERS FARM LLC West UGA Expansion LID East UGA Expansion LID East UGA Expansion LID Legend Pasco City Limits LID Breakout Study Areas Airport Zones 1, 2, 3, and 5 Proposed Infrastructure [SL Proposed Lift Station Proposed Forcemain Proposed Force Main (By Others) Proposed Gravity Main Proposed Gravity Main (By Others) In Favor of LID Opposed to LID Unknown LID Preference Annexation Requested N DRAWING IS FULL SCALE WHEN BAR MEASURES 2” 0 900 1,800450 Feet 1 inch : 900 Feet J:\DATA\PSC\21-0300\GIS\PASCO EAST UGA LID\PASCO EAST UGA LID.APRX BY: JLAWRENCE PLOT DATE: MAY 10, 2022 COORDINATE SYSTEM: NAD 1983 HARN STATEPLANE WASHINGTON SOUTH FIPS 4602 FEETVicinity Map City of PascoCity of PascoEast UGA Expansion LIDEast UGA Expansion LIDLandowner Status and PreferencesExhibit 1PRELIMINARYThis map is a graphic representation derived from the City of Pasco Geographic Information System. It was designed and intended for City of Pasco staff use only; it is not guaranteed to survey accuracy. This map is based on the best information available on the date shown on this map. Any reproduction or sale of this map, or portions thereof, is prohibited without express written authorization by the City of Pasco. This material is owned and copyrighted by the City of Pasco.Page 81 of 297 [SL [SL [SL [SL &&R &&R &&R &&R&&R&&R&&R&&R &&R&&R&&R &&R &&R &&R&&R&&R&&R&&R&&R &&R &&R &&R [SL N4THAVEROAD 68ANTIGUA DR THREE RIVERS D R SANDIFUR PKWY ROAD 76FENWAY DR WRIGLEY DR ROBERTWAYNEDRS IRO CC O DRROAD 44SANTAFELNH U D SO N DRROAD 84S AN TA C R U Z LN QUADRA DR KAU TRAIL RD LAREDO DRCOL UM B I A R I V ER R D ROAD 42 NARTESIA DR SAHARA DR SINAI DRROAD 52BURDEN BLVD ROBERTA RD ROAD 60CONVENTION DRN RAILROADAVEIVY RD BURNS RD OVERTON RD ROAD 36 NJANET RD ROAD 68 NHILLTOP DR FOSTERW ELLS RDNORTHWEST C O M M O N S DRCHA P E L H I L L B L V D I-18 2 E H O M E R U N RDCLARK RD I-18 2 W GLADE NORTH RDTAYLORFLATSRDGlade Road LS ROAD 36 LS THREE RIVERS LS MADISON PARK LS NW COMMONS LS 15''12'' 12'' 1 5 ' ' @ S = 0 . 5% 15'' @ S=0.5% 15'' @ S=0.5% 15' ' @ S= 0 . 5 %15' ' @S=0.5%15'' @ S=0.5%15'' @ S=0.5% 12'' @ S=0.5%12' ' @ S=0.5%12'' @ S=0.5% PUD #1 (FRANKLIN COUNTY) DT WAREHOUSE LLC MARS MARS PORT OF PASCO LAMB WESTON PORT OF PASCO COLUMBIA WATERS FARM LLC MULLEN (ETAL)COLE ALFORD A B LIVING TRUST COLUMBIA WATERS FARM LLC OLBERDING OLBERDING PASCO SCHOOL DISTRICT NO. 1 PASCO SCHOOL DISTRICT NO. 1OLBERDING PRO MADE CONSTRUCTION LLCOLBERDING OLBERDINGOLBERDING OLBERDING OLBERDING FARM 2005 LLC DEPARTMENT OF NATURAL RESOURCES PORT OF PASCO USA PORT OF PASCO COLUMBIA WATERS FARM LLC COLUMBIA WATERS FARM LLC RE = 410.01' IE = 393.3' RE = 412.81' IE = 400.88' RE = 417.59' IE = 405.88' RE = 452.41' IE = 410.88' RE = 438.33' IE = 419.28' RE = 464.83' IE = 444.72' RE = 398.00' IE = 377.50' RE = 410.01' IE = 393.30' RE = 445.92' IE = 430.80' 12'' S=0.40% 12'' S=0.53% 12'' S=0.53% 12'' S=0.45% 12'' S=0.40% 12'' S=0.40% 12'' S=0.53%12''S=0.53%12''S=0.64%12'' S=0.53%12''S=1.50%12'' S=0.53% 12'' S=0.64% RE = 481.9' IE = 452.1'RE = 492.1' IE = 464.8' RE = 508.0' IE = 480.7' RE = 505.1' IE = 473.3' RE = 512.0' IE = 487.0' RE = 518.0' IE = 491.8' RE = 526.3' IE = 505.2' RE = 469.0' IE = 444.7' RE = 518.0' IE = 507.9' RE = 527.0' IE = 506.3' RE = 486.1' IE = 458.5' RE = 511.9' IE = 495.0' RE = 517.1' IE = 499.8' West UGA Expansion LID East UGA Expansion LID East UGA Expansion LID Legend Pasco City Limits LID Breakout Study Areas Airport Zones 1, 2, 3, and 5 Proposed Infrastructure [SL Proposed Lift Station Proposed Forcemain Proposed Force Main (By Others) Proposed Gravity Main Proposed Gravity Main (By Others) Gravity Flow to Glade Road LS Gravity Flow to Glade Road LS N DRAWING IS FULL SCALE WHEN BAR MEASURES 2” 0 900 1,800450 Feet 1 inch : 900 Feet J:\DATA\PSC\21-0300\GIS\PASCO EAST UGA LID\PASCO EAST UGA LID.APRX BY: JLAWRENCE PLOT DATE: MAY 9, 2022 COORDINATE SYSTEM: NAD 1983 HARN STATEPLANE WASHINGTON SOUTH FIPS 4602 FEETVicinity Map City of PascoCity of PascoEast UGA Expansion LIDEast UGA Expansion LIDGravity Sewer Contribution BasinsAlternative APRELIMINARYThis map is a graphic representation derived from the City of Pasco Geographic Information System. It was designed and intended for City of Pasco staff use only; it is not guaranteed to survey accuracy. This map is based on the best information available on the date shown on this map. Any reproduction or sale of this map, or portions thereof, is prohibited without express written authorization by the City of Pasco. This material is owned and copyrighted by the City of Pasco.Page 82 of 297 City of Pasco Alternative A East UGA LID Preliminary Assessments (May 16, 2022) 25,404,000$ Name Parcel No. Area (acres) Peak Hour Flow (gpm) Hybrid Charge: 60% Flow, 40% Area ALFORD A B LIVING TRUST, MADDEN D & BEVERLY M 115130046 10.2 14.8 195,251$ ALLEN, PAUL R & JOYCE 115130039 1.0 1.5 19,199$ BARRAGAN, VICENTE & MARIA 115140204 1.1 1.0 17,186$ BERG, KINGSLEY 115140053 2.6 19.5 156,151$ BLACKMAN, TODD 115140142 2.3 17.9 143,291$ BOTTS, CLARENCE & MELINDA 115130114 1.1 1.5 20,351$ CARDENAS, LAZARO & DELFINA 115090090 1.4 10.7 85,117$ CARDENAS, LAZARO & DELFINA 115140242 1.2 1.7 22,654$ CEJA (ETUX), EUTIQUIO 115140231 1.2 1.7 22,654$ CHRIST (ETUX), JOSEF F 115130041 1.0 1.5 19,391$ CLARK, MELVIN D & LINDA R 115130148 1.1 1.6 21,311$ COLE, SHARON K 115130055 10.2 14.8 195,251$ COLUMBIA WATERS FARM LLC 115010032 223.8 444.2 5,091,975$ DARIGOLD, INC 124680043 149.5 625.0 5,625,576$ ELIZONDO, JOSE L & MARIA F 115140253 1.2 1.7 22,654$ ESQUIVEL, MIGUEL A 115090054 1.2 9.2 73,483$ EVARTS, MICHAEL DEAN & RETHA F 115140080 1.2 1.7 22,654$ FARM 2005 LLC 114250016 130.7 190.8 2,509,273$ FORD, CHRISTIAN G & ANGIE M 115140213 1.2 1.1 18,859$ FOX (ETAL), JACOB W 115130147 1.0 1.5 19,967$ GRAESCH, DAVID 115090107 1.1 8.4 67,359$ GROSS, MARK & KERI 115090063 1.1 8.0 64,297$ GULLEY, MELISSA DAWN & SHANE ARTHUR 115130146 1.3 1.9 24,766$ HANEY, TODD 115140179 1.1 1.0 17,034$ HARRINGTON, DAN & PAMELA 115130107 0.9 1.3 16,703$ HARTMAN, ERIC S & AREK A 115090143 1.0 0.9 15,209$ HAWS, NATHAN & LEJUNE 115090072 1.1 8.0 64,297$ J-13, LLC 114330045 41.0 59.9 787,724$ J-13, LLC 114330048 41.5 138.4 1,323,427$ KATZ (ETAL), EMMA TORRES 115140044 2.4 18.4 146,965$ LEYENDEKKER, SAYRE THOMAS 115130121 1.2 1.7 22,654$ LOTTO, JEFF A 115140071 5.2 7.6 99,641$ MCCLURE, CHRIS & ROBERTA 115130029 1.2 1.7 22,463$ MCCLURE, CHRIS & ROBERTA 115130030 1.2 1.7 22,271$ MCCLURE, CHRIS & ROBERTA L 115130031 2.5 3.7 48,573$ MOORE, HOWARD 115140188 1.1 1.0 17,186$ MORALES, RAUL G & SANDRA I 115090116 1.1 8.4 67,359$ NEY, HENRY 115140282 1.2 1.7 22,654$ OLBERDING, ALLEN & CHERYL 114330031 158.2 230.9 3,036,278$ OLBERDING, ALLEN & CHERYL 114330041 41.2 60.2 791,371$ OLBERDING, ALLEN & CHERYL 114330042 40.9 59.7 785,036$ OLBERDING, ALLEN & CHERYL 114330043 40.8 89.7 986,882$ OLBERDING, BLAKE & MICHELLE 114330030 6.6 9.6 126,520$ PASCO SCHOOL DISTRICT NO. 1 114330046 40.7 12.1 460,401$ PASCO SCHOOL DISTRICT NO. 1 114330047 41.5 12.1 467,847$ PRAIRIE ELECTRIC INC 115140151 1.0 0.9 15,513$ PRAIRIE ELECTRIC INC 115140160 1.0 0.9 15,513$ PUD #1 (FRANKLIN COUNTY)124680038 6.7 0.0 62,362$ RAMIREZ, BENITO 115130145 1.1 1.6 20,543$ RAMIREZ, HILDEGARDO & ROBERTA 115140275 1.2 1.7 22,654$ RICO, GUILLERMO & ROSA E 115140035 2.2 16.6 132,269$ RODRIGUEZ (ETAL), ARMANDO & ELIDA L 115140222 1.2 1.1 18,859$ RODRIGUEZ, ARMANDO & ELIDA L 115140197 1.1 1.0 17,034$ SALINAS, JOHN & ADELLA 115090081 1.1 8.0 64,297$ SG LAND MANAGEMENT LLC 114330044 40.9 89.1 983,851$ TATE, STEVEN & BECKY 115130040 1.0 1.5 19,391$ TATE, TRONALIE 115130038 1.0 1.5 19,199$ TORRES (ETVIR), ROSA E 115090152 1.0 0.9 15,209$ UHLMAN, CAROL L 115140107 3.4 5.0 65,468$ UHLMAN, CAROL L 115140108 1.3 1.9 25,342$ VANDERMUELEN, AMY 115090125 1.3 1.2 20,380$ VANDERMUELEN, AMY 115090134 1.0 0.9 15,209$ VELASQUEZ (ETAL), DAGOBERTO & JUANA 115130138 1.0 1.4 18,431$ VIRAKPANYOU, SONNY 115140291 1.2 1.7 22,654$ YINGLING, JOHN R & THU THI 115140268 1.2 1.7 22,654$ Totals 1,091.7 2,250.0 25,404,000$ East UGA LID Project Cost Estimate 8:32 AM 5/10/2022 J:\Data\PSC\21-0300\20 Design\Parcel Analysis\PSC Landowner Table.xlsx[A-May16Assess]Page 83 of 297 [SL [SL [SL [SL &&R &&R &&R &&R&&R&&R&&R&&R &&R&&R&&R &&R &&R &&R&&R&&R &&R &&R &&R [SL N4THAVEROAD 68ANTIGUA DR THREE RIVERS D R SANDIFUR PKWY ROAD 76FENWAY DR WRIGLEY DR ROBERTWAYNEDRS IRO CC O DRROAD 44SANTAFELNH U D SO N DRROAD 84S AN TA C R U Z LN QUADRA DR KAU TRAIL RD LAREDO DRCOL UM B I A R I V ER R D ROAD 42 NARTESIA DR SAHARA DR SINAI DRROAD 52BURDEN BLVD ROBERTA RD ROAD 60CONVENTION DRN RAILROADAVEIVY RD BURNS RD OVERTON RD ROAD 36 NJANET RD ROAD 68 NHILLTOP DR FOSTERW ELLS RDNORTHWEST C O M M O N S DRCHA P E L H I L L B L V D I-18 2 E H O M E R U N RDCLARK RD I-18 2 W GLADE NORTH RDTAYLORFLATSRDGlade Road LS ROAD 36 LS THREE RIVERS LS MADISON PARK LS NW COMMONS LS 15''12'' 12'' 1 5 ' ' @ S = 0 . 5% 15'' @ S=0.5% 15'' @ S=0.5% 15' ' @ S= 0 . 5 %15' ' @S=0.5%15'' @ S=0.5%15'' @ S=0.5% 12'' @ S=0.5%12' ' @ S=0.5%12'' @ S=0.5% PUD #1 (FRANKLIN COUNTY) DT WAREHOUSE LLC MARS MARS PORT OF PASCO LAMB WESTON PORT OF PASCO COLUMBIA WATERS FARM LLC MULLEN (ETAL)COLE ALFORD A B LIVING TRUST COLUMBIA WATERS FARM LLC OLBERDING OLBERDING PASCO SCHOOL DISTRICT NO. 1 PASCO SCHOOL DISTRICT NO. 1OLBERDING PRO MADE CONSTRUCTION LLCOLBERDING OLBERDINGOLBERDING OLBERDING OLBERDING FARM 2005 LLC DEPARTMENT OF NATURAL RESOURCES PORT OF PASCO USA PORT OF PASCO COLUMBIA WATERS FARM LLC COLUMBIA WATERS FARM LLC RE = 410.01' IE = 393.3' RE = 412.81' IE = 400.88' RE = 417.59' IE = 405.88' RE = 452.41' IE = 410.88' RE = 438.33' IE = 419.28' RE = 464.83' IE = 444.72' RE = 398.00' IE = 377.50' RE = 410.01' IE = 393.30' RE = 445.92' IE = 430.80' 12'' S=0.40% 12'' S=0.53% 12'' S=0.53% 12'' S=0.40% 12'' S=0.53%12''S=0.53%12''S=0.64%12'' S=0.53%12''S=1.50%12'' S=0.53% 12'' S=0.64% RE = 481.9' IE = 452.1'RE = 492.1' IE = 464.8' RE = 508.0' IE = 480.7' RE = 505.1' IE = 473.3' RE = 512.0' IE = 487.0' RE = 518.0' IE = 491.8' RE = 511.9' IE = 495.0' RE = 469.0' IE = 444.7' RE = 518.0' IE = 507.9'RE = 486.1' IE = 458.5' West UGA Expansion LID East UGA Expansion LID East UGA Expansion LID Legend Pasco City Limits LID Breakout Study Areas Airport Zones 1, 2, 3, and 5 Proposed Infrastructure [SL Proposed Lift Station Proposed Forcemain Proposed Force Main (By Others) Proposed Gravity Main Proposed Gravity Main (By Others) Gravity Flow to Glade Road LS Gravity Flow to Glade Road LS N DRAWING IS FULL SCALE WHEN BAR MEASURES 2” 0 900 1,800450 Feet 1 inch : 900 Feet J:\DATA\PSC\21-0300\GIS\PASCO EAST UGA LID\PASCO EAST UGA LID.APRX BY: JLAWRENCE PLOT DATE: MAY 9, 2022 COORDINATE SYSTEM: NAD 1983 HARN STATEPLANE WASHINGTON SOUTH FIPS 4602 FEETVicinity Map City of PascoCity of PascoEast UGA Expansion LIDEast UGA Expansion LIDGravity Sewer Contribution BasinsAlternative BPRELIMINARYThis map is a graphic representation derived from the City of Pasco Geographic Information System. It was designed and intended for City of Pasco staff use only; it is not guaranteed to survey accuracy. This map is based on the best information available on the date shown on this map. Any reproduction or sale of this map, or portions thereof, is prohibited without express written authorization by the City of Pasco. This material is owned and copyrighted by the City of Pasco.Page 84 of 297 City of Pasco Alternative B East UGA LID Preliminary Assessments (May 16, 2022) 21,494,000$ Name Parcel No. Area (acres) Peak Hour Flow (gpm) Hybrid Charge: 60% Flow, 40% Area ALFORD A B LIVING TRUST, MADDEN D & BEVERLY M 115130046 10.2 14.8 178,727$ COLE, SHARON K 115130055 10.2 14.8 178,727$ COLUMBIA WATERS FARM LLC 115010032 223.8 444.2 4,671,142$ DARIGOLD, INC 124680043 149.5 625.0 5,184,408$ FARM 2005 LLC 114250016 130.7 190.8 2,296,919$ J-13, LLC 114330045 41.0 59.9 721,060$ J-13, LLC 114330048 41.5 138.4 1,218,109$ OLBERDING, ALLEN & CHERYL 114330031 158.2 230.9 2,779,325$ OLBERDING, ALLEN & CHERYL 114330041 41.2 60.2 724,399$ OLBERDING, ALLEN & CHERYL 114330042 40.9 59.7 718,600$ OLBERDING, ALLEN & CHERYL 114330043 40.8 89.7 905,951$ OLBERDING, BLAKE & MICHELLE 114330030 6.6 9.6 115,813$ PASCO SCHOOL DISTRICT NO. 1 114330046 40.7 12.1 417,374$ PASCO SCHOOL DISTRICT NO. 1 114330047 41.5 12.1 424,090$ PUD #1 (FRANKLIN COUNTY)124680038 6.7 0.0 56,244$ SG LAND MANAGEMENT LLC 114330044 40.9 89.1 903,111$ Totals 1,024.2 2,051.3 21,494,000$ East UGA LID Project Cost Estimate 8:32 AM 5/10/2022 J:\Data\PSC\21-0300\20 Design\Parcel Analysis\PSC Landowner Table.xlsx[B-May16Assess]Page 85 of 297 Pasco City Council Meeting May 16, 2022 East UGA Expansion Sewer LIDPage 86 of 297 East UGA Expansion Sewer LID Page 87 of 297 Landowner Preferences Page 88 of 297 Alternative A Page 89 of 297 Alternative A •This represents the original LID Boundary that includes all of the UGA expansion area east of Road 68, north of Burns Road, and the south half of the Reimann Industrial Center. •The proposed improvements consist of Glade Road Lift Station and force main, gravity sewer trunk mains extending from Glade Road to Road 68, including sewer mains along Deseret Road, Melody Lane and Kau Trail Road, to provide service to all parcels included in the LID boundary. •Cost for the project is to be assessed in its entirety to LID participants.Page 90 of 297 Alternative A Preliminary Assessment Page 91 of 297 Alternative B Page 92 of 297 Alternative B •The proposed LID area is the UGA expansion area east of Road 68 as described for Alternative A, except the neighborhood between Deseret Road and Kau Trail Road. •Sewer mains along Melody Lane and Kau trail would be eliminated and Deseret Road gravity main would only be partially extended. •Cost for the project would be assessed to the LID participants. No assessment for the Deseret Road/KauTrail neighbors.Page 93 of 297 Alternative B Preliminary Assessment Page 94 of 297 Questions?Page 95 of 297 AGENDA REPORT FOR: City Council May 12, 2022 TO: Dave Zabell, City Manager City Council Regular Meeting: 5/16/22 FROM: Steve Worley, Public Works Director Public Works SUBJECT: *Resolution - Process Water Reuse Facility (PWRF) + Renewable Natural Gas (RNG) Request for Proposals (RFP) – Ratification of Selected Respondent I. REFERENCE(S): Resolution Request for Proposal (RFP) Process Water Reuse Facility (PWRF) Site Visit Presentation Proposals Received – Burnham SEV, LLC and Anaergia Proposal Score Sheets II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. _____, related to the Process Water Reuse Facility to Renewable Natural Gas Request for Proposals and which includes the following items: Ratification of the following items: 1. Publication of notices (RFP) on March 17 and March 24, 2022. 2. The evaluation criteria within the RFP is appropriate for the subject project. 3. The two proposals received are considered qualified and responsive. And approval for staff to conduct a 'bidder's conference' to: 1. Assure respondents have a full understanding of the proposals. 2. Make respondents aware of any changes in the RFP. 3. Allow respondents a reasonable opportunity to revise their proposals for the purpose of obtaining the best and final proposals. And to begin negotiations of a contract with the se lected respondent whose proposal it determines to be the most advantageous to the City. III. FISCAL IMPACT: Page 96 of 297 • Estimated Project Cost: to be determined after final contract negotiations. • Proposals received indicate a cost range from $77M to $185M. • Selected respondent to finance project. • PWRF Processors will be charged a fee for treating their industrial wastewater. IV. HISTORY AND FACTS BRIEF: On January 10, 2022, staff provided Council a presentation on the proposed updates to the PWRF with the potential to include a Renewable Natural Gas (RNG) option having the potential to reduce costs to the PWRF Processor s. Council indicated support to move forward with the proposed concept. In moving the project forward, the City is following the requirements of Chapter 70A.140 RCW, Water Quality Joint Development Act, for the purpose of entering into a contract with an RNG Developer. The RCW requires several steps by the City leading up to the negotiation of a contract with a selected proponent. These steps include: 1. Publication of a notice (for Request for Proposals) twice in the local newspaper seeking certain specified services by means of entering into an agreement with a service provider. 2. Establish evaluation criteria determined to be relevant to the services requested. 3. Determine, based on its review of the proposals received, that respondents are: a) Qualified to provide the requested services b) Responsive to the notice and evaluation criteria To expedite the process and be mindful of Council's time, these items have been completed by staff, however, they ultimately require approval, in this case through ratification, by the legislative body. The “PWRF-to- RNG Project” RFP was advertised in the Tri-Cities Herald on March 17, and March 24. The deadline for responses was April 22 by 11:00 am, 30 days after the second advertisement. The evaluation criteria established for this RFP were as follows: Assembly of Proposal 5 points Approach and Understanding of Requirements 15 points Experience of RNG Developer 15 points Page 97 of 297 Technical Approach 15 points Financial Qualifications of RNG Developer 10 points Compensation to Processors 40 points Total 100 points During the 30-day RFP period, an on-site meeting was held at the PWRF for interested parties. A total of ten people representing nine different companies showed up for a short presentation and visit of the PWRF. Staff also responded to numerous questions via email from three companies: BerQ RNG, Anaergia, and SEV. Two proposals were received: Burnham SEV, LLC and Anaergia. After a review of the proposals received, staff determined both respondents to be qualified and responsive. V. DISCUSSION: With the first few steps in the process completed, they next major steps in the process are the conduct of a "bidders conference", selection of the preferred bidder deemed to be the most advantageous to the City, and negotiation of a contract with the selected bidder. The "bidder's conference' is conducted to: 1. Assure respondents have a full understanding of the proposals. 2. Make respondents aware of any changes in the RFP. 3. Allow respondents a reasonable opportunity to revise their proposals for the purpose of obtaining the best and final proposals. Attached are the proposals received from Burnham SEV, LLC. and Anaergia. Page 98 of 297 Resolution: PWRF-to-RNG RFP Process Ratification - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, RELATED TO CHAPTER 70A.140 RCW, THE WATER QUALITY JOINT DEVELOPMENT ACT, FOR THE PROCESS WATER REUSE FACILITY UPGRADE TO RENEWABLE NATURAL GAS PROJECT AND RELATED TO THE RATIFICATION BY THE LEGISLATIVE AUTHORITY OF NOTICE AND EVALUATION CRITERIA, DETERMINATION OF SELECTED RESPONDENTS AND FURTHER DESIGNATE STAFF TO CONDUCT A BIDDER’S CONFERENCE FOR FINAL DETERMINATION OF A SELECTED RESPONDENT AND NEGOTIATE A PROPOSED AGREEMENT. WHEREAS, the City of Pasco (City) has a project to update and increase the capacity of the Process Water Reuse Facility (PWRF) with the potential to include a Renewable Natural Gas (RNG) option that would help reduce capital and operational costs to the PWRF Processors for the treatment and disposal of their industrial wastewater; and WHEREAS, the City desires to utilize the process outlined in Chapter 70A.140 RCW, Water Quality Joint Development Act, to secure services by means of an agreement with a n RNG service provider; and WHEREAS, staff prepared a Request for Proposals (RFP) attached as Exhibit A for the proposed PWRF-to-RNG project and gave official notice to the public via publication in the Tri - Cities Herald on March 17 and March 24; and WHEREAS, staff prepared and included in the RFP evaluation criteria determined to be relevant to the services being requested; and, WHEREAS, proposals were received by Burnham SEV LLC and Anaergia and staff determined both respondents to be qualified and responsive for the subject RFP; and WHEREAS, pursuant to Chapter 70A.140 RCW the City Council ratifies staff actions and determines that notice was reasonable and consistent with statutory requirements, the published evaluation criteria are reasonable, and both respondents are qualified and responsive to the RFP and are selected respondents, and further, wish to designate staff to conduct a bidder’s conference with the selected respondents and negotiate an agreement with the selected respondent whose proposal it determines to be the most advantageous to the City. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the steps described above completed by staff related to the aforementioned project and more specifically related to the publication of notices, evaluation criteria, and determination of received proposals as being qualified and responsive, are hereby ratified and approved; and Page 99 of 297 Resolution: PWRF-to-RNG RFP Process Ratification - 2 That Staff is hereby designated to conduct a ‘bidder’s conference’ to ensure respondents have a full understanding of the proposals, make respondents aware of any changes in the RFP, and allow respondents a reasonable opportunity to revise their proposals for the purpose of obtaining the best and final proposals; and That Staff is hereby designated at the conclusion of such conference to begin negotiations, which City Council shall oversee and direct, with the selected respondent whose proposal is the most advantageous to the City of Pasco and its residents ; and That Staff is hereby designated and authorized to assist the City Council with any of the procedures as allowed in RCW 70A.140; and Be It Further Resolved that this Resolution shall be in full force and effect upon adoption. PASSED by the City Council of the City of Pasco, Washington this __ day of ________, 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorney Page 100 of 297 RFP No: 22-750 Issued: March 17, 2022 REQUEST FOR PROPOSAL (RFP) Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project DUE DATE:Friday, April 22, 2022 11:00 a.m. Exactly, Pacific Local Time Contact: Steve Worley, Public Works Director, worleys@pasco-wa.gov, (509) 543-5738 Pre-Proposal Conference A pre-proposal conference will be held on Wednesday, March 23 at 9:00 a.m. at the PWRF, 957 E Foster Wells Road, Pasco, WA 99301. Electronically Submitted Proposals are hereby solicited and shall only be submitted to Dustin Wittman at wittmand@pasco-wa.gov. Responses delivered by hand, fax, telephone or email or any postal carrier will not be accepted. Important Notice to Bidders Prospective Proposers who do not obtain Solicitation Documents directly from the City of Pasco’s designated website at www.pasco-wa.com should register receipt of the solicitation through Pasco’s RFP website at: https://www.pasco- wa.gov/list.aspx?Mode=Subscribe#bids By registering, the prospective proposer will be placed on the City’s notification list for any forthcoming addendum or other official communications. Failure to register as a prospective proposer may cause the proposer’s submittal response to be rejected as non-responsive if the proposer has submitted a submittal response without acknowledgement of issued addenda or if the proposer fails to submit revised required documents. RFP 22-750 Page 1 of 18 EXHIBIT A Page 101 of 297 RFP 22-750 Page 2 of 18 SECTION 1 – GENERAL INFORMATION 1.1 Purpose The City of Pasco, Washington (City) is seeking to enter into a long-term Purchase Agreement with a qualified Renewably Natural Gas (RNG) developer. The City’s Process Water Reuse Facility (PWRF) is an active agricultural industrial wastewater treatment site. The PWRF has been operating for 25+ years to pretreat, treat, and dispose of approximately one billion gallons of agricultural industrial wastewater on 1854 acres of farmland. The current system has reached it design life and capacity, making upgrades and expansion necessary to accommodate growth for existing Processors and bringing new Processors onboard. To meet Ecology permit requirements for proposed expanded capacity at the PWRF, the City is looking for a RNG developer interested in utilizing the agricultural industrial wastewater as a source for the generation of renewable natural gas. The city is interested in receiving proposals to enter into an agreement for the design and construction of 1) an anaerobic digestor system that can process an average annual daily design flow of 7.31 million gallons per day (MGD) and a maximum month day flow of 12.18 MGD and 2) a sequential batch reactor (SBR) system capable of removing nitrogen from a maximum flow of 9.6 MGD to a maximum level of 28 mg/l, and 3) a biogas upgrade/cleaning facility to produce RNG from the methane produced from the anaerobic digestor system. Additional detail in Section 3 – Scope of Work. A. The City is interested in utilizing the PWRF industrial wastewater to produce a biogas as an environmental and sustainable source of revenue. Generating electrical energy has been deemed infeasible because the economic value of the electrical energy in this area is low and a project connecting to the local electric distribution grid is very complex and expensive. B. The City is seeking a qualified Full-Service Developer to design/build an industrial wastewater system to produce biogas and convert it into renewable natural gas for sale on the RNG voluntary market. The system must also include removal of Nitrogen from a portion of the wastewater. C. The City invites qualified Full-Service Developers to submit proposals to provide Financing, Design, Site Preparation and Equipment Installation, Operation and Marketing services to convert the PWRF agricultural industrial wastewater into a renewable natural gas as detailed in Section 3 – Scope of Work. D. The successful Proposer must meet the following objectives: a. Have the engineering resources and experience to convert agricultural industrial wastewater at the PWRF into RNG. b. At minimal cost to the agricultural Processors, provide financing for a facility to create, receive and condition the industrial wastewater into renewable natural gas c. Provide details on the approach to convert the PWRF industrial wastewater into RNG and revenue for the Processors and the City. d. Provide documentation on how the proposer will deliver the renewable natural gas to the marketplace. e. Provide proposed contract terms describing the revenues to be shared with the Processors and City and the terms and conditions affecting revenues for the project over the term of Page 102 of 297 RFP 22-750 Page 3 of 18 the contract period. 1.2 Pre-proposal Conference A pre-proposal conference will be held at the time and date indicated on the cover page. All prospective Proposers are strongly encouraged to attend. The intent of the pre-proposal conference is to assist the Proposers to understand the requirements of this RFP more fully. Proposers are encouraged to submit questions in advance to enable the City to prepare responses; these questions should be emailed to the Contact(s). Questions will be encouraged during the pre- proposal conference call as well. 1.3 Term of Contract The intended term of this contract will begin upon execution and continue for twenty years (20) years, with the option of two five-year (5), mutually agreeable extension. Respondents to this RFP may propose adjusted terms to this intended plan. 1.4 Questions, Communications and Interpretation of the RFP A. No oral interpretations of the RFP will be made to any Proposer. All questions and any explanations must be requested in writing and directed to the Buyer no later than date specified in Section 1.5 Schedule or as extended per addendum. Oral explanations or instructions are not binding. Any information modifying a solicitation will be furnished to all Proposers by addendum. B. When submitting a question regarding this RFP, use the following format: 1. RFP Page Number 2. RFP Section Reference 3. Question C. Questions regarding this RFP may be electronically submitted via the Public Purchase website or sent via email directed to the Contact(s) shown on the cover page. D. A blackout period is established between the time a solicitation is issued by the City and the time the City awards the contract. After the issuance of any solicitation, all bidders, proposers, contractors, consultants, or individuals acting on their behalf are hereby prohibited from contacting or lobbying any City employee, official or representative at any time during the blackout period. Communications concerning this RFP with other than the listed Contact staff may cause the Proposer to be disqualified. Page 103 of 297 RFP 22-750 Page 4 of 18 1.5 Schedule Month/Day/Year Event March 17 & 22, 2022 Public announcement of Request for Proposals March 23, 2022 Pre-proposal meeting at 9:00 a.m. Pacific Local Time at PWRF April 20, 2022 Last day to submit questions, in writing, by 3:00 pm, Pacific Local Time April 22, 2022 Proposals due, 11:00 a.m. Exactly, Pacific Local Time May 4, 2022 *Begin Interviews if applicable. May 11, 2022 *Begin Negotiations July 1, 2022 *Execute Contract *NOTE: Dates preceded by an asterisk are estimated dates. Estimated dates are for information only. 1.6 Addenda If at any time, the City changes, revises, deletes, clarifies, increases, or otherwise modifies the RFP, the City will issue a written Addendum to the RFP. Proposers must register for this RFP to be notified of addendum and new documents on this RFP. It is the Proposer’s responsibility to check for addenda and other new documents on-line. Refer to Section Title Page for the ‘Important Notice to Bidders’. 1.7 Late Proposals Proposals or modifications of proposals, sent to wittmand@pasco-wa.gov after the exact hour and date specified for receipt will not be accepted. 1.8 Cancellation of RFP or Postponement of Proposal Opening The City reserves the right to cancel this RFP at any time. The City may change the date and time for submitting proposals prior to the date and time established for submittal. 1.9 Examination of Proposal and Contract Documents The submission of a proposal shall constitute an acknowledgement upon which the City may rely that the Proposer has thoroughly examined and is familiar with all requirements and documents pursuant with the RFP, including any addenda and has reviewed and inspected all applicable statutes, regulations, ordinances, and resolutions addressing or relating to the services to be provided hereunder. The failure of a Proposer to comply with the above requirement shall in no way relieve the Proposer from any obligations with respect to its proposal or to any Contract awarded pursuant to this RFP. No claim for additional compensation shall be allowed which is based upon a lack of knowledge or misunderstanding of this RFP. 1.10 Cost of Proposals The City is not liable for any costs incurred by Proposer in the preparation and evaluation of Page 104 of 297 RFP 22-750 Page 5 of 18 proposals submitted. 1.11 Modifications of Proposal or Withdrawal of Proposal Prior to Proposal Due Date At any time before the time and date set for submittal of proposals, a Proposer may submit a modification of a proposal previously submitted to the City. All proposal modifications shall be made in writing, executed, and submitted in the same form and manner as the original proposal. Proposals may be withdrawn by written notice received prior to the exact hour and date specified for receipt of proposals. A proposal also may be withdrawn in person by a Proposer or authorized representative provided their identity is made known and they sign a receipt for the proposal, but only if the withdrawal is made prior to the exact hour and date set for receipt of proposals. All requests for modification or withdrawal of proposals, whether in person or written, shall not reveal the amount of the original proposal. 1.12 Proposal Withdrawal After Opening Except for claims of error granted by the City, no Proposer may withdraw a proposal after the date and time established for submitting proposals, or before the award and execution of a Contract pursuant to this RFP, unless the award is delayed for a period exceeding the period for proposal effectiveness. See Section 1.16 Proposal Effective Date. Requests to withdraw a proposal due to error must be submitted in writing along with supporting evidence for such claim for review by the City. Evidence must be delivered to the City within two (2) business days after request to withdraw. The City reserves the right to require additional records or information to evaluate the request. Any review by the City of a proposal and/or any review of such a claim of error, including supporting evidence, creates no duty or liability on the City to discover any other proposal error or mistake, and the sole liability for any proposal error or mistake rests with the Proposer. 1.13 Error and Administrative Corrections The City shall not be responsible for any errors in proposals. Proposers shall only be allowed to alter proposals after the submittal deadline in response to requests for clarifications or Best and Final Offers by the City. The City reserves the right to allow corrections or amendments to be made that are due to minor administrative errors or irregularities, such as errors in typing, transposition, or similar administrative errors. 1.14 Compliance with RFP Terms, Attachments and Addenda A. The City intends to negotiate a Contract based on the terms, conditions, attachments, and addenda contained in this RFP. Proposers shall submit proposals, which respond to the requirements of the RFP. B. The City reserves the right at its sole discretion to reject any and all proposals received without penalty and not to issue a contract as a result of this RFP. The City also reserves the right at its sole discretion to waive minor administrative irregularities contained in any proposals. C. The City reserves the right to reject any proposal for any reason including, but not limited to, the following – • Any proposal, which is incomplete, obscure, irregular or lacking necessary detail and specificity; • Any proposal that has an unacceptable qualification, limitation, exception or provision Page 105 of 297 RFP 22-750 Page 6 of 18 attached to the proposal; • Any proposal from Proposers who (in the sole judgment of the City) lack the qualifications or responsibility necessary to complete the project; • Any proposal submitted by a Proposer which is not registered or licensed as may be required by the laws of the state of Washington or local government agencies; • Any proposal, from Proposers who are not approved as being compliant with the requirements for equal employment opportunity; and • Any proposal for which a Proposer fails or neglects to complete and submit any qualifications information within the time specified by the City. D. Proposers are strongly advised to not take exceptions to the terms, conditions, attachments, and addenda; exceptions may result in rejection of the proposal. An exception is not a response to a proposal requirement. If an exception is taken, a ‘Notice of Exception’ must be submitted with the proposal. The ‘Notice of Exception’ must identify the specific point or points of exception and provide an alternative. The City may, at its sole discretion, determine that a proposal with a ‘Notice of Exception’ merits evaluation. A proposal with a ‘Notice of Exception’ not immediately rejected may be evaluated, but its competitive scoring shall be reduced to reflect the importance of the exception. Evaluation and negotiation shall only continue with the Proposer if the City determines that the proposal continues to be advantageous to the City. E. In consideration for the City’s review and evaluation of its proposal, the Proposer waives and releases any claims against the City arising from any rejection of any or all proposals, including any claim for costs incurred by Proposers in the preparation and presentation of proposals submitted in response to this RFP. F. Proposals shall address all requirements identified in this RFP. In addition, the City may consider proposal alternatives submitted by Proposers that provide cost savings or enhancements beyond the RFP requirements. Proposal alternatives may be considered if deemed to be in the City’s best interests. Proposal alternatives shall be clearly identified. 1.15 Collusion If the City determines that collusion has occurred among Proposers, none of the proposals from the participants in such collusion shall be considered. The City’s determination shall be final. 1.16 Proposal Effective Date The proposal shall remain in effect for 6 months after the proposal due date, unless extended by agreement. 1.17 Procedure When Only One Proposal is Received If the City receives a single responsive, responsible proposal, the City may request an extension of the proposal acceptance period and/or conduct a price or cost analysis on such proposal. The Proposer shall promptly provide all cost or pricing data, documentation and explanation requested by the City to assist in such analysis. By conducting such analysis, the City shall not be obligated to accept the single proposal; the City reserves the right to reject such proposal or any portion thereof. Page 106 of 297 RFP 22-750 Page 7 of 18 SECTION 2 – PROPOSAL EVALUATION AND CONTRACT AWARD 2.1 Proposal Evaluation A. The City will evaluate proposals using the criteria set forth in this RFP. If deemed necessary, written and/or oral discussions, site visits or any other type of clarification of proposal information may be conducted with those Proposers whose proposals are found to be potentially acceptable. Identified deficiencies, technical requirements, terms and conditions of the RFP, costs or prices, and clarifications may be included among the items for discussion. The discussions are intended to give Proposers a reasonable opportunity to resolve deficiencies, uncertainties and clarifications as requested by the City and to make the cost, pricing or technical revisions required by the resulting changes. In addition, the City may request additional business and administrative information. B. The City may find that a Proposer appears fully qualified to perform the project or it may require additional information or actions from a Proposer. In the event the City determines that the proposal is not within the Competitive Range the City shall eliminate the proposal from further consideration. C. The evaluation of Proposers’ proposals and additional information may result in successive reductions of the number of proposals that remain in the Competitive Range. If applicable to the procurement, the firms remaining in the Competitive Range may be invited to continue in the proposal evaluation process, and negotiations. D. The City may enter negotiations with one or more Proposers to finalize Contract terms and conditions. Negotiation of a Contract shall be in conformance with applicable federal, state and local laws, regulations and procedures. The objective of the negotiations shall be to reach agreement on all provisions of the proposed Contract. In the event negotiations are not successful, the City may reject proposals. E. Upon completion of negotiations discussions with one or more Proposers, the City may issue to all remaining potentially acceptable Proposers in negotiations a request for Best and Final Offers. The request shall include notice that discussions are concluded, an invitation to submit a revised proposal with a Best and Final Offer, and a new submittal date and time. F. The City reserves the right to make a Contract award without written and/or oral discussions with the Proposers and without an opportunity to submit Best and Final Offers when deemed to be in the City’s best interests. Contract award, if any, shall be made by the City to the responsible Proposer whose proposal best meets the requirements of the RFP, and is most advantageous to the City, taking into consideration price and the other established evaluation factors. G. The City is not required to award a Contract to the Proposer offering the highest revenue. The City shall have no obligations until a Contract is signed between the Proposer and the City. The City reserves the right to award one or more contracts as it determines to be in its best interest. No cost chargeable to the proposed contract may be incurred before receipt of a fully executed contract. 2.2 Responsive and Responsible A. Responsive The City will consider all the material submitted by the Proposer, and other evidence it may obtain otherwise, to determine whether the Proposer is in compliance with the terms and Page 107 of 297 RFP 22-750 Page 8 of 18 conditions set forth in this RFP. B. Responsible In determining the responsibility of the Proposer, the City may consider: • the ability, capacity and skill to perform the project and provide the service required; • the character, integrity, reputation, judgment and efficiency; • financial resources to perform the project properly and within the times proposed; • the quality and timeliness of performance on previous contracts with the City and other agencies, including, but not limited to, the effort necessarily expended by the City and other agencies in securing satisfactory performance and resolving claims; • compliance with federal, state and local laws and ordinances relating to public contracts; • other information having a bearing on the decision to award the project. C. Failure of a Proposer to be deemed responsible or responsive may result in the rejection of a proposal. 2.3 Financial Resources and Auditing If requested by the City, prior to the award of a contract, the Proposer shall submit proof of adequate financial resources available to carry out the execution and completion of work required by this contract. The City reserves the right to audit the Contractor throughout the term of this contract to assure the Contractor’s financial fitness to perform and comply with all terms and conditions contained within this contract. The City will be the sole judge in determining the Contractor’s financial fitness in carrying out the terms of this contract. 2.4 Public Disclosure of Proposals Submittals received by the City in response to this RFP become public records and are subject to Chapter 42.56 RCW, the Public Records Act. The Proposer should clearly identify in its proposal any specific information that it claims to be confidential or proprietary. After a decision to award the contract has been made, the proposals shall be available for inspection and copying by the public. If the City receives a Public Records Act request to view the information so marked in the Proposer’s submittal following an award, its sole obligations shall be to notify the Proposer (1) of the request and (2) of the date that such information will be released to the requester unless the Proposer obtains a court order to enjoin that disclosure pursuant to RCW 42.56.540. If the Proposer fails to timely obtain a court order enjoining disclosure, the City will release the requested information on the date specified. 2.5 Certification Regarding Debarment, Suspension and Other Responsibility If this Contract is a covered transaction for purposes of 49 CFR Part 29, the Contractor is required to verify that none of the Contractor, its principals, as defined at 49 CFR 29.995, or affiliates, as defined at 49 CFR 29.905, are excluded or disqualified as defined at 49 CFR 29.940 and 29.945. The Contractor is required to comply with 49 CFR 29, Subpart C and must include the requirement to comply with 49 CFR 29, Subpart C in any lower tier covered transaction it enters into. By signing and submitting this Contract, the Contractor certifies as follows: The certification in this clause is a material representation of fact relied upon by the City. If it is later determined that the Contractor knowingly rendered an erroneous certification, in addition to remedies available to the City, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The Contractor agrees to comply with the Page 108 of 297 RFP 22-750 Page 9 of 18 requirements of 49 CFR 29, Subpart C while performing this Contract and further agrees to include a provision requiring such compliance in its lower tier covered transactions. 2.6 Health Insurance Portability and Accountability Act (HIPAA) The Health Insurance Portability and Accountability Act (HIPAA) of 1996, requires health information about an individual to remain secure and private. The Contractor shall comply with all HIPAA regulations in full. Information on this Act can be found at the Office of Civil Rights website: http://www.hhs.gov/ocr/privacy/. 2.7 Compliance with Section 504 of the Rehabilitation Act of 1973, as amended (Section 504) and the American with Disabilities Act of 1990 as amended (ADA) Pursuant to Title II of the ADA, and Section 504, the City of Pasco must not discriminate against people with disabilities in providing services, programs or activities even if those services, programs or activities are carried out by contractors. The Contractor agrees that it shall provide all programs, services, and activities to City employees or members of the public under this Contract in the same manner as the City is obligated to under Title II of the ADA, and Section 504 and shall not deny participation or the benefits of such services, programs, or activities to people with disabilities on the basis of such disability. Failure to comply with this section shall be a material breach of, and grounds for the immediate termination of, this Contract. 2.8 Non-Disclosure Obligation Any data provided by the City either before or after Contract award shall only be used for its intended purpose. Contractors and Subcontractors shall not utilize nor distribute the City data in any form without the express written approval of the City. While performing the work under this Contract, the Contractor may encounter personal information, licensed technology, Software, Documentation, drawings, schematics, manuals, data and other materials described as “Confidential”, “Proprietary” or “Business Secret”. The Contractor shall not disclose or publish the information and material received or used in performance of this Contract. This obligation is perpetual. The Contract imposes no obligation upon the Contractor with respect to confidential information which the Contractor can establish that: a) was in the possession of, or was rightfully known by the Contractor without an obligation to maintain its confidentiality prior to receipt from the City or a third (3rd) party; b) is or becomes generally known to the public without violation of this Contract; c) is obtained by the Contractor in good faith from a third (3rd) party having the right to disclose it without an obligation of confidentiality; or, d) is independently developed by the Contractor without the participation of individuals who have had access to the City’s or the third (3rd) party’s confidential information. If the Contractor is required by law to disclose confidential information the Contractor shall notify the City of such requirement prior to disclosure. 2.9 Independent Status of Contractor Ownership The Proposer, and any and all employees of the Proposer or other persons engaged in the performance of any work or services required of the Proposer under this Agreement, are independent contractors and shall not be considered employees of the City. Any and all claims that arise at any time under any Workers’ Compensation Act on behalf of said employees or other persons while so engaged, and any and all claims made by a third party as a consequence of any act or omission on the part of the Proposer’s employees or other persons engaged in any of the work or services required to be provided herein, shall be the sole obligation and responsibility of the Proposer. Page 109 of 297 RFP 22-750 Page 10 of 18 SECTION 3 – SCOPE OF WORK 3.1 Introduction/Background Information A. The City of Pasco is a rapidly growing City located in Franklin County at the confluence of the Columbia and Snake rivers in Southeastern Washington. Pasco and its sister cities of Kennewick, Richland and West Richland make up the Tri-Cities Metropolitan Statistical Area (MSA) (population 300,000). Pasco is the second largest City with 78,273 residents. The City has a City Manager-Council form of government, was incorporated in 1891, and operates as a code City under the Revised Code of Washington Title 35 (RCW 35). B. Pasco is a full-service City composed of eight (8) departments, with a biennial budget of $338 million of which roughly $140 million is General Fund. The City provides citizens with general government, public safety, public works, planning and community development, housing programs, as well as parks and recreational programs. C. The City has a staff of approximately 450 employees. Less than 400 are full/part time with an additional seasonal flux of up to 50. More than half of the employees report to Public Works, Public Safety (Fire and Police) as well as the Parks Department. D. The City owns and operates the PWRF and is seeking to enter into a long-term RNG Agreement with a qualified RNG developer. The PWRF includes a screens building with two large rotary drum screens to screen out organic solids, a lined winter storage ponds underlain and surrounded with fine sandy soils. The City and the Developer will enter into an Agreement for the production and purchase of the created biogas and a Site Lease Agreement for any of the Developer’s equipment that may be located at the PWRF site. During negotiations, the Developer can suggest GCCS improvements, and in addition to the already planned expansion of the PWRF to increase the availability of biogas, operational changes to improve biogas quality will be considered. The Developer will be responsible for obtaining environmental permits for their equipment and processes. E. Information regarding the PWRF is provided in the Exhibits, including: • PWRF Vicinity Map (Exhibit C); • PWRF Influent Design Criteria (Exhibit D); • PWRF Wastewater Characteristics Data (Exhibit E); • PWRF Capital Facilities Plan/Engineering Report (2019) – Volume 1: CHAPTERS • https://pascofileshare.com/link/tHrVmdsSlKMD4K8yS964UK • PWRF Capital Facilities Plan/Engineering Report (2019) – Volume 2: APPENDCIES • https://pascofileshare.com/link/xMmy3neHj32sftV60LtCqg F. Process Wastewater Characteristics – Laboratory analysis has been completed. City currently tracks flow, BOD, Total N, and TSS levels as provided in Exhibit E. G. Project Site - Potential locations for the Developer’s RNG facilities are shown on the site map in Exhibit C. H. Points of Interface with the City – At PWRF, it can be assumed that wastewater will be available at the entrance to the existing rotary drum screens building. I. The City is not presently proposing to use the RNG as an end user created by this project. The Page 110 of 297 RFP 22-750 Page 11 of 18 City may consider becoming a RNG consumer based on the outcome of this RFP and the terms presented by the Proposal. J. Basin Disposal, Inc., located in Pasco, Washington is currently looking into the development of an organic solids anaerobic digester that could create RNG for its regional solid waste collection fleet to CNG. The City may consider an agreement with Basin Disposal, Inc. by which Basin Disposal, Inc. would be a consumer of PWRF wastewater to help supply their proposed anaerobic digester. K. Cascade Natural Gas Company is the regional retail provider of natural gas in the Pasco area. Williams Gas also has a pipeline with a connection north of Pasco on Railroad Avenue. 3.2 Scope of Services Proposer shall: A. Have the capacity to provide full services for the design and construction of all anaerobic digestion, biological nitrogen removal, and RNG production as well as have the capacity to provide full services for the purchasing, conditioning, marketing, and selling of all PWRF renewable natural gas generated by the proposed system. B. Maintain and operate equipment in a clean and sanitary condition and in accordance with all regulatory requirements. C. Work cooperatively with the City to resolve any operation/maintenance type issues that may occur. D. Provide specific details about the method and equipment used for anaerobic digesters, biological nitrogen removal, gas conditioning, storing, transporting, and marketing in the proposal. E. Not destroy or incinerate any PWRF-produced gas without written approval by the City. Developer shall provide the City with written certification for all materials diverted away from the PWRF. F. Assume full responsibility and liability for the conditioning and marketing of all renewable gas generated at the PWRF. G. Provide a description of the proposed markets or processers that will be utilized in the execution of this agreement. H. Specify the location and operating hours of the facility it proposes to receive materials. The City shall have the right to inspect the facility and its operating records to ensure contract compliance with PWRF gas handling and conditioning into renewable natural gas. 3.3 Proposal Questions and Proposer’s Response A. Proposals shall include responses to the information presented in Section 3.4, B. Organization and Assembly of Proposal. Proposals submitted without answers provided will not be considered complete and will be scored accordingly. Question responses need to be specific, detailed and straightforward using clear, concise, and easily understood language. B. Proposers answering the proposal questions shall examine the entire Request for Proposal document, including instructions, terms and conditions, contract, specifications and applicable standards and regulations. Failure to do so shall be at the Proposer’s risk. 3.4 Proposal Submittal and Organization Proposals will only be accepted from Proposers able to complete the delivery of services described in the scope of work. Joint ventures shall submit one proposal for the team, with accompanying proof of the joint venture agreement. If a company chooses not to submit a proposal, the City kindly requests the Proposer to state the reason they did not submit a proposal. Page 111 of 297 RFP 22-750 Page 12 of 18 A. Submittal of Proposals 1. Download of RFP To submit a proposal, a company or firm must download the RFP off of the City website at: http://www.pasco-wa.gov/Bids.aspx. Download as early as possible and do not wait until the due date as the process may take some time to complete. 2. Electronic Submittal a. Submit one (1) electronic submittal, in pdf format. b. The electronic submittal shall be limited to the documents listed in Subsection B, Organization and Assembly of Proposal, below and shall not include additional brochures, booklets or other sales materials that are not specifically requested in the RFP. Supplemental materials may be submitted as specified below in 3. Supplemental Information. 3. Supplemental Information Additional brochures, booklets or other sales material that are not specifically requested in the RFP may be submitted separate than the proposal and labeled as ‘Supplemental Information’. 4. Delivery of Proposal A. Electronic submittal only. Responses delivered by hand, fax, telephone or email or any postal carrier will not be accepted. B. Proposals shall contain all required attachments and information submitted prior to the specific date and time, to Dustin Wittman at wittmand@pasco-wa.gov. C. The City cannot guarantee internet access. It is strongly recommended that you respond 24 hours prior to the proposal closing date and time. Proposer accepts all risks for uploading their proposal by closing date and time for submittal. D. If proposer sends a file to Dustin Wittman at wittmand@pasco-wa.gov, it is the proposer’s responsibility to ensure the file is not corrupt or damaged. If the City is unable to open an attachment because it is damaged, corrupt, infected, etc., it may disqualify proposer’s submission. E. The City is will verify when a proposal has been received up until the date and time of submittal. F. If you have any questions on how to respond to electronic submittals, contact Dustin Wittman at wittmand@pasco-wa.gov or at (509) 545-3447. Public Works staff is available Monday – Friday, 8 am to 5 pm Pacific Local Time. B. Organization and Assembly of Proposal Format: Electronic submittal, pdf format and shall fit onto a letter size, 8.5” x 11” page when printed. Pages shall be limited to single space, minimum 12-point font. Pages are defined as one side of an 8.5” x 11” sheet of paper. Page 112 of 297 RFP 22-750 Page 13 of 18 Proposal is to be organized into the following Sections: Section Title Preface • Exhibit A – Proposer Signature and Submittal Page • Internal Revenue Service Form W-9 • Exhibit B – Conflict of Interest Form – between Developer and City 1 Letter of Transmittal 2 Executive Overview Response should include an Executive Overview/Summary (approximately 5 to 10 pages) of the proposed service describing the approach, methodology, City’s responsibilities and overall schedule and cost. 3 Identification of Developer The Developer will provide the full legal name, address, and contact information of the responding entity. The ownership of this entity will be identified. The name(s) of, and contact information for, the individual(s) responsible for the RFP response, and for negotiation of a RNG Agreement, will be identified. Page 113 of 297 RFP 22-750 Page 14 of 18 4 Developer’s Qualifications The Developer will provide background information on the firm, including years in business; total annual revenue; organization structure; and experience of key personnel. Developer will identify and describe all operating or recently shut down (within the last five years) RNG facilities owned and/or operated by the Developer. The information should include dates of operation, size, technology, location, energy purchaser and facility owner. The Developer will provide detailed descriptions for three to five operating RNG projects that the Developer feels best represent his experience relevant to this RFP. The following information will be provided for these projects: • Project name and location. • Project type, facility description, and size. • Facility owner and energy purchaser. • Date of commencement of operation, project availability (uptime), and capacity factor. Discuss reasons for the inability to meet availability and capacity factor targets, if not achieved. • Identify environmental compliance issues, if any. • Arrangement for operation/maintenance of the overall facility; and • Form of compensation to the facility owner. A contact person at the host facility and energy purchaser must be identified which City can contact as references. The Developer will identify any of the Developer’s RNG projects that have terminated operation within the last 10 years, prior to expiration of their RNG utilization agreements, and the reasons why operation was terminated. The Developer will identify any RNG project where, in the last 10 years, the Developer was awarded the RNG utilization rights and it took longer than three years to bring the RNG project online, and/or where RNG utilization rights agreements were terminated due to failure to bring an RNG project online in a timely manner (or for any other reasons). In an appendix, the Developer will provide copies of the Developer’s last two annual audited financial reports, or their equivalent. 5 Description of Proposed LFGE Project Developers will describe the project (or projects) they expect to develop in response to this RFP, and if appropriate an alternative project (or projects) to the primary project. The description should as a minimum identify: • Anaerobic digester, biological nitrogen removal, and RNG technology employed. • All facility design capacities. • Site size/dimensions. • Expected 15-year, year-by-year RNG consumption and energy production; and • Air emissions and air permitting strategy. The Developer will identify the expected purchaser of their energy product, and/or outline their plan and schedule for securing an energy purchaser. The Developer will summarize their expectations for energy pricing, and the basis for these expectations. Page 114 of 297 RFP 22-750 Page 15 of 18 The Developer will describe how the Developer intends to finance the project. 6 Project Development Schedule The Developer will provide an expected project development schedule, expressed in months after notification of award. As a minimum, the Developer should show early completion dates and late completion dates for the following key milestones: • Execution of a RNG Purchase Agreement; • Submittal of permit applications; • Execution of energy sales agreement; • Commencement of construction; and • Initiation of commercial operation. City will want to reserve the right to terminate an RNG Purchase Agreement for the Developer’s failure to meet the late completion dates specified by the Developer. The Developer can offer alternatives to termination in his proposal (i.e., per day delay payments to City). City is concerned that City might encumber the RNG utilization rights with a Developer, and the Developer may not make as expeditious use of the RNG as possible 7 Compensation to Processors Developer must include proposed compensation terms for royalty payments, fixed percentage of gross revenue, variable percentage of gross revenue or fixed monthly payment. Developer can submit any compensation approach, provided the calculation methodology is transparent and verifiable. Developer should also indicate whether compensation proposed includes the sharing of any tax incentives, tax benefits, renewable energy certificates, assistance payments, or other financial or monetary benefits received by virtue of the characterization of RNG as a renewable energy resource. The Developer must provide an initial proposed term sheet for City’s consideration. The document should be included as an appendix to the proposal. 8 Attestation The proposal must be signed by an officer of the entity that is making the proposal, attesting that: • The individual signing the proposal has the authority to make the proposal; • The contents of the proposal are truthful and accurate; and • The proposal is valid for 180 days. The name and title of the individual must be shown below the signature, along with the date of the signature. Page 115 of 297 RFP 22-750 Page 16 of 18 3.5 RFP Evaluation Components/Criteria The City’s Evaluation Team will use the following criteria to evaluate each Proposer/Company/Firm’s proposal received Criteria Points Assembly of Proposal 5 Approach and understanding of requirements 15 Experience of Developer - Experience on RNG Recovery/Control Projects - Experience on Similar RNG Projects - Project References 15 Technical Approach - Description of Proposed RNG Project - Energy Sale Plan(s) and Commitments - Compliance with City Requirements and Goals - Development Schedule/Milestones 15 Financial Qualifications of Developer 10 Compensation to Processors 40 Total Written Points 100 Interviews/Oral Presentations/Demos 50 Total Points Possible 150 SECTION 4 – CONTRACT 4.1 Acceptance of Contract A. The City is looking for a strategic long-term partner and understands that specific contract terms will be negotiated after selection of a successful Proposer. B. The scope of work described herein will be authorized by Contract. The final contract scope and schedule will be negotiated with the selected Proposer. C. Proposers shall include with their submittal a sample contract template for the City to review. 4.2 Required Terms and Conditions As a government agency, subject to Chapter 42.56 RCW, Washington State Public Records Act, the City is required to include the following clause into any negotiated contract. While the City is open to negotiation of a contract, please be advised the City must comply with all components of the Public Records Act. AVAILABILITY OF RECORDS FOR PUBLIC INSPECTION a) As a public contract, all records prepared, generated, or used by Proposer or its agents, employees and subcontractors relating to this Agreement and associated work (hereinafter “public records”) may be subject to disclosure under the Washington State Public Record Act, Chapter 42.56 RCW. Page 116 of 297 RFP 22-750 Page 18 of 18 b) Proposer shall maintain and retain all such public records in a manner that is readily accessible for a minimum term of no less than three (3) years following completion of the contract work. City shall have the right to timely review all such public records upon request. Proposer shall provide copies of any public records requested by City within 30 days of City’s request. If City requests that copies of public records be provided to City in an electronic format, said records shall be provided at no cost to City. If paper copies are requested by City, City shall pay $.10 per page. Payment for paper copies shall be rendered to Proposer within 20 days of receipt. c) All records subject to a public disclosure request will be provided to a requester unless exempted from disclosure by law. The City’s decision to exempt or redact any public record shall be based only upon valid exemptions that apply to the City. City will not refrain from disclosing any record under an exemption that may be personal to Proposer. In the event Proposer objects to release of any public record under this Agreement, Proposer may seek judicial approval to prevent such disclosure at its sole expense. City shall neither aid nor interfere with Proposer’s request for an injunction to prevent disclosure of any public record under this Agreement. d) Proposer shall insert this provision in all contracts with subcontractors or agents providing services relating to this Agreement. 4.3 Insurance The City will require a Developer, awarded a contract, to provide insurance coverage for the duration of an executed Agreement. The actual insurance requirements may include, but are not limited to, the following: 1. Automobile Liability: $1,000,000 combined single limit, covering any auto and including MCS 90 and CA 99 48 endorsements. 2. Worker’s Compensation: Coverage as required by the industrial insurance laws of the State of Washington. 3. Commercial General Liability: $2,000,000 each occurrence, $2,000,000 general aggregate, $2,000,000 products & completed operations aggregate, and $1,000,000 stop gap/employers’ liability each accident. City of Pasco named as an additional insured on the developers Commercial General Liability insurance with appropriate endorsement(s) for the work or exposures to the City. 4. Professional Liability: $1,000,000 per claim and annual aggregate required for any design or engineer work. 5. Excess or Umbrella Liability: Limits not less than $10,000,000 each occurrence and annual aggregate. This requirement may be satisfied instead by the Developer’s Commercial General Liability and Automobile Liability, coverages or any combination thereof that achieves the overall required limits of insurance. 6. Builder’s Risk Insurance: Builder’s Risk insurance or Installation Floater as appropriate for the amount of the value of the project if project involves construction or equipment on the project site. 7. Pollution liability Insurance: $1,000,000 per loss and $1,000,000 annual aggregate naming the City an additional insured. 8. Property Insurance: All risk Property Insurance in the amount of the replacement value of the equipment or property once work completed on the project site if required by City. Page 117 of 297 RFP 22-750, Exhibit A Signature and Submittal Page Page 1 of 1 RFP No: 22-750 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project Exhibit A Proposer Signature and Submittal Page We acknowledge that all Addenda through issued for this RFP have been examined as part of the proposal documents. Company: Address City State/Zip Authorized Representative Signature: Print Name Title Email: Phone: Fax: Page 118 of 297 RFP 22-750, Exhibit B Conflict of Interest Form Page 1 of 1 Exhibit B City of Pasco – Conflict of Interest Form Project Title: Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project RFP #: 22-750 The developer being contracted must check one of the boxes on the worksheet below. (company name) has no known or actual, potential, or reasonably perceived, financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project. or (company name) has a potential or reasonably perceived financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project, as described here: Our firm proposes to mitigate the potential or perceived conflict according to the following plan: or (company name) has an actual financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project, as described here: Page 119 of 297 RFP 22-750, Exhibit C Vicinity Map Page 1 of 1 Exhibit C City of Pasco – PWRF Vicinity Map Page 120 of 297 RFP 22-750, Exhibit D PWRF Basis of Design Page 1 of 1 EXHIBIT D City of Pasco – PWRF Influent Design Criteria Page 121 of 297 PWRF: The Who, What, Why, and How Page 122 of 297 Page 123 of 297 Page 124 of 297 Page 125 of 297 Who We Serve and Why The 40-acre process water reuse facility currently receives agricultural processor wastewater from six food processors and disposes of it in an area of irrigated agriculture production fields on approximately 1,850 acres north of Pasco and east of Highway 395 in Franklin County. Each year, over 1 billion gallons of processor wastewater is pumped to the City’s Process Water Reuse Facility (PWRF) where bio solids are screened out, sediment is filtered out and the wastewater is stored in lined ponds (150 million gallons) during winter months. The PWRF serves two areas: The Foster Wells Service Area (located to the west of Highway 395) The Columbia East Service Area (located south of the facility near Highway 12) These areas consist of existing and future food processors that send their agricultural wastewater to individual and regional pump stations that discharge to the PWRF for pretreatment and land application. Page 126 of 297 Who We Serve and Why Page 127 of 297 Process Water Reuse Facility- Current Treatment Process Page 128 of 297 PWRF Urgent Challenges/Needs We now have increased needs coming to the area. We can’t serve these new additional needs or even our current processor needs, which directly impact the City of Pasco’s growth opportunities. The PWRF has reached capacity, creating an opportunity to create a more robust and environmentally upgraded facility and enhanced treatment technologies. Grimmway will expand their plant & we need to direct their flow from Municipal WWTP to PWRF Reser’s is building a second processing plant. Simplot is expanding their facility. Darigold to build a new $500M plant. Lamb Weston has requested to send their agriculture wastewater to the PWRF. We have reached the Nitrogen limit allowed by the WA Dept. of Ecology to be applied to farm circles. We must address the odor control issue. Our expansion plans include a covered treatment system which will alleviate this issue by adding a low rate anaerobic digestor (AD) that will consist of two covered ponds side-by- side. The AD system cleans the wastewater before it is pumped to the farm circles or to winter storage, significantly reducing the odor. More winter storage Pond capacity needed. Water must be stored during the winter. 150 MG is the current storage capacity. Due to processor growth, we must reduce nitrogen levels to be in compliance with the State department of Ecology.Page 129 of 297 Proposed Benefits of Facility Upgrades – The Future of the PWRF To improve the reliability of the facility, allow for the expansion in productivity of current food processors, and to create capacity for additional processors, the facility has an urgent need for rehabilitation and treatment improvements defined as such: Addition of potable water and more electrical power. (Currently in the works) Additional winter storage ponds –500 MG Addition of a Low-Rate Anaerobic Digester Providing a more comprehensive wastewater treatment -but also provides the opportunity to produce and capture methane gas from the treatment process of the wastewater Addition of biological nitrogen removal process (using an SBR or Algae growth or both) to reduce nitrogen levels before sending wastewater to the farm circles An economically sustainable business model. The sustainability is achieved through the sale of the renewable natural gas that comes from the AD system. Creates 300+ fulltime jobs in addition to jobs required to build the upgraded plant and the new processing plants that come to town. Opportunity for Increased Revenue through increased lease rates. Cleaner water means our farmers can grow higher yield crops like potatoes which in turn increases land lease rates. Bio gas production. Selling Renewable natural gas. Offers carbon credits to industries that use natural gas.Page 130 of 297 Estimated Costs and Funding Currently, the estimated costs for the proposed improvements are as follows: Low -Rate Anaerobic Digester (cost shared by RNG developer and Processors) $47M Biological Nitrogen Removal (cost shared by RNG developer and Processors) $20M Bio Gas Cleaning to RNG (paid solely by the RNG developer) $10M The PWRF expansion will be paid through a public/private partnership of current and future food processors which are committed to paying for this project, along with: •Existing Processors •Darigold 2019 WA Ecology State Revolving Fund Low-interest Loan - 2020 Franklin County Economic Development (.09) Grant Funds - 2021 Franklin County Economic Development (.09) Grant Funds City Bond At no cost to the City’s taxpayers, the bond is a mechanism for funding the build.$1.5M $500,000 $1M (Phase 1 improv.) Processors will pay back the bond with no impact on local tax payers. $67M Over a Period of Investing: 2 Years (operational by Q1 2024)Page 131 of 297 v Proposed Treatment Process Average Annual Flow: Average BOD Load: Average Nitrogen Load: 5.69 MGD 145,369 ppd 3,884 ppd 92%79-94% Reduction Reduction Average BOD Load:Average Nitrogen Load: Irrigation Water QualityPage 132 of 297 Current Financials Overview To help reduce the financial burden to all Processors, the City of Pasco and the Processors request state/federal investment $20M in the project over the next 2 years. Other funding partners for ongoing PWRF projects include: State Capital Budget (State department of Commerce) US Economic Development Administration HAEIFAC Franklin County Economic Development ProgramPage 133 of 297 The Summary The PWRF Upgrade project is crucial to the City of Pasco and its numerous agricultural food processors (who employ many Tri-Cities residents) and the need for expansion is an urgent one. Without it, we are facing no ability for existing processors to grow or to bring new processors into the PWRF. In conclusion, this expansion benefits: The Environment by significantly cleaning the agricultural wastewater and reducing the nitrogen being applied to the irrigated land, odor reduction and is a centralized regional treatment. The Farmers who grow crops on fields irrigated with much cleaner industrial wastewater would be able to grow higher quality crops The Food Processors by being able to continue to take in their current flow along with future increased flows. Increase reliability in O&M. The City of Pasco & State of Washington by recycling hundreds of millions of gallons of water annually back into the hydrologic groundwater system that is hydraulically connected to the Columbia River. PWRF expansion catalyst for new jobs with incoming processors and increased flows to manage. Page 134 of 297 City of Pasco RFP – PWRF Industrial Wastewater-to-RNG Project Request for Proposals Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project City of Pasco April 22, 2022 Page 135 of 297 City of Pasco RFP – PWRF Industrial Wastewater-to-RNG Project Steve Worley Public Works Director City of Pasco 525 N 3rd Ave 1st Floor, Pasco, WA 99301 Dear Mr. Worley, Anaergia Services, LLC (Anaergia) is pleased to respond to the City of Pasco’s (City) Request for Proposal (RFP) Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project. Anaergia is the world leading technology and solution provider in the recovery of valuable products from organic waste including wastewater and food waste. Our technologies and integrated solutions are used to achieve organics recycling and municipal waste diversion goals, manage digestate, promote sustainability, produce renewable energy from biogas, and generate additional revenue sources. Through collaboration with the City, Anaergia proposes to deliver a turnkey Public-Private Partnership (P3) project to design, build, own, operate, and finance industrial wastewater treatment upgrades, including anaerobic digestion, nutrient removal, and renewable natural gas (RNG) upgrading at PWRF. Backed by our extensive experience, financing strength, and suite of technologies, Anaergia is an ideal partner to develop and execute a project that maximizes benefit to the City, local processors, farmers, and the community while limiting risk. With our unmatched track record of delivering bioenergy projects in the Western US, Anaergia is uniquely positioned to deliver this P3 project for the City: 1. Anaergia’s West Coast-based team offers in-house development, engineering, permitting, construction management, commissioning, and operations staff. Our dedicated personnel bring deep industry knowledge, relationships, and lessons learned to ensure project success and reduce risk to the City and local processors. 2. Our team has successfully delivered numerous P3 biogas utilization, anaerobic digestion, and wastewater projects in the Western US, providing municipalities with Design, Build, Own, Operate, and Finance services for digester upgrades, nutrient recovery, and pipeline RNG. 3. Anaergia’s Rialto Bioenergy Facility (RBF) in Rialto, CA is North America’s largest food waste digester and California’s largest pipeline RNG facility. Anaergia provided design, build, own, operate, and finance services for new construction of 7MG anaerobic digestion, process wastewater treatment, and 985,000 MMBTU/yr RNG upgrading and pipeline interconnection. 4. As the industry leader in high-solids wet anaerobic digestion, organics processing, and wastewater RNG, Anaergia can deliver turnkey solutions to exceed City goals for capacity expansion and revenue generation at the PWRF. Anaergia can secure a robust feedstock supply to further support the project through our partnership with local waste hauler Basin Disposal Inc. (BDI) and deployment of our OREX™ organics recovery and pre-processing technology. 5. Anaergia’s unparalleled qualifications are further supported by our trusted team members, AECOM and Biomethane LLC. AECOM’s Seattle-based team has deep industry expertise providing design and engineering services wastewater and energy projects, including in Page 136 of 297 City of Pasco RFP – PWRF Industrial Wastewater-to-RNG Project partnership with Anaergia. Located in Spokane, WA, Biomethane LLC offers local presence to secure feedstock and RNG offtake, facilitate development, enhance project revenue generation, and concentrate project benefits within the community. Thank you for your consideration of this proposal. I look forward to any questions or feedback. Regards, Yaniv Scherson, Ph.D., P.E. Chief Operating Officer Anaergia Services, LLC 705 Palomar Airport Road, Suite 200, Carlsbad, CA 92011 Yaniv.Scherson@anaergia.com 949-874-1118 Page 137 of 297 City of Pasco RFP – PWRF Industrial Wastewater-to-RNG Project Contents 1. EXECUTIVE OVERVIEW ....................................................................................................................................... 1 2. IDENTIFICATION OF ANAERGIA .......................................................................................................................... 6 3. ANAERGIA’S QUALIFICATIONS ........................................................................................................................... 7 4. DESCRIPTION OF PROPOSED PROJECT ............................................................................................................. 22 5. PROJECT DEVELOPMENT SCHEDULE ................................................................................................................ 31 6. COMPENSATION TO PROCESSORS ................................................................................................................... 34 7. ATTESTATION .................................................................................................................................................. 37 APPENDIX A: RFP FORMS ............................................................................................................................................. APPENDIX B: LETTERS OF SUPPORT ............................................................................................................................. APPENDIX C: PERSONNEL RESUMES ............................................................................................................................. APPENDIX D: ANAERGIA PROJECT REFERENCES ........................................................................................................... APPENDIX E: ANAERGIA FINANCIALS ........................................................................................................................... APPENDIX F: TECHNOLOGY BROCHURES ...................................................................................................................... APPENDIX G: PROJECT BFD .......................................................................................................................................... Page 138 of 297 City of Pasco 1 RFP – PWRF Industrial Wastewater-to-RNG Project 1. Executive Overview Anaergia is the industry leader in resource recovery with demonstrated expertise spanning wastewater, anaerobic digestion (AD), biogas utilization, and solid waste. Anaergia has extensive experience delivering public private partnerships (P3) with municipalities, public agencies, and industry partners to address capital improvement needs, achieve regulatory compliance, generate new revenue streams for budget certainty and future projects, and bolster economic development by investing in assets that serve the community and create value for Cities and ratepayers. Proposed Approach Anergia proposes to design, build, own, operate, and finance upgrades at the Pasco Process Water Reuse Facility (PWRF) for AD, biological nitrogen removal (BNR), and renewable natural gas (RNG) upgrading and pipeline injection (the Project). Anaergia would provide key proprietary Anaergia technologies to achieve the desired scope and goals of the City. The Project would provide necessary wastewater treatment (WWT) capacity for Processor regulatory compliance as well as new lease and RNG revenue to the City and Processors. Anaergia’s system design and capacities assume co-digestion of organic waste with wastewater solids to significantly enhance Project RNG production and sales. In addition to enhancing value to the City and offsetting associated Project cost to Processors, this approach advances organics landfill diversion mandates in Washington (HB 1799) and encourages economic development in the community by providing cost-effective regulatory support for various local companies. In conversations with Anaergia, local waste service provider Basin Disposal Inc. (BDI) has expressed their openness to delivering food waste slurry to the PWRF as part of a project with Anaergia. The slurry would be pre-processed leveraging proprietary Anaergia technology to clean and dilute approximately 80 tons per day (tpd) of source separated organics (SSO) into a clean, energy-dense, and digestible feedstock for AD. Available organic feedstock volumes are anticipated to further increase as a result of HB 1799 and regional deployment of Anaergia organics recovery and pre- processing equipment. Through our industry leading experience in organics-to-energy, Anaergia can uniquely support an organics digestion project at the PWRF to maximize project benefit to all stakeholders through our proprietary organics recovery technology, hauler relationships, and experience operating organics receiving and digestion facilities. Anaergia would be fully responsible for coordinating, managing, and executing RNG interconnection and offtake agreement necessary to generate revenue from RNG sales. Based on currently available information, Anaergia would inject RNG to the Cascade Natural Gas gas grid at the interconnection point approximately 1.5 miles away from the PWRF. Based on conversations with BDI, we propose an offtake agreement for a portion of anticipated RNG production with BDI to provide fleet fueling. We would complement RNG sales with additional offtake agreements with local and national utilities (potentially including Cascade, Williams, NW Natural, Avista, etc.), additional vehicle fleets, and on the spot market via a broker. Based on the current project concept, Anaergia anticipates registering for and selling associated D5 RINs under the federal Renewable Fuel Standard as well as renewable and low-carbon fuel programs within Washington, Oregon, and California. Page 139 of 297 City of Pasco 2 RFP – PWRF Industrial Wastewater-to-RNG Project Anaergia proposes the following key technologies to achieve the Project goals: Omnivore® High-Solids Wet AD: Anaergia would provide proprietary high-solids wet digestion to effectively process both wastewater solids and organic waste. This approach maximizes RNG generation through improved VSR versus conventional AD, increased capacity for biogas-generating solids, and reduced digester footprint to limit impact on PWRF. Omnivore® high-solids wet AD is achieved through (1) pre-thickening of digester feeds by Anaergia’s sludge screw thickener and (2) deployment of Anaergia’s high-solids submersible propeller mixers. Anaergia’s mixers are designed to operate efficiently and effectively in viscous applications such as process wastewater and co- digestion, by achieving the highest mixing standard in the market (over 90% of the volume above critical mixing velocity guaranteed). Together, Omnivore® AD provides redundant capacity for operational flexibility, supporting both future Processor load growth and co-digestion. As a result, enhanced RNG production is possible without sacrificing Processor requirements. Gas storage membrane would provide biogas storage to optimize biogas utilization and provide operational flexibility. Biological Nitrogen Removal: Anaergia proposes a wastewater treatment train comprised of: (1) existing rotary drum fine screens, (2) dissolved air flotation (DAF) clarification, and (3) BNR system. The system is intended to maximize solids removal to not only enhance effluent quality but also maximize biogas production potential in the AD. Anaergia proposes a sequential batch reactor (SBR) to reduce nitrogen from DAF effluent and filtrate to a maximum level of 28 mg/L, per the RFP requirements. The system is sized to provide sufficient nitrogen removal capability to address increased nutrient loading associated with both process wastewater and food waste. While Anaergia currently proposes an SBR for nitrogen removal, third-party technology selection would be validated during design. Treated effluent would be returned to the City for final disposition. Biogas Upgrading: Anaergia proposes a biogas conditioning and upgrading facility at PWRF, employing Anaergia’s unique and proven biogas upgrading (BUG™) technology. The high-yield BUG™ technology is designed to maximize methane recovery from biogas and ultimately RNG production. Anaergia’s BUG™ system is operating at Victor Valley Wastewater Reclamation Authority (VVWRA), having passed the 40-day Southwest Gas for interconnect, demonstrating consistent achievement of IOU RNG specifications. The system first removes impurities from biogas produced through the anaerobic digestion of wastewater solids and external organic waste, before Figure 1: Project Simplified Process Diagram Page 140 of 297 City of Pasco 3 RFP – PWRF Industrial Wastewater-to-RNG Project stripping carbon dioxide from the gas to produce pipeline-quality RNG for injection into the utility interconnection point. The system would be sized to accommodate anticipated gas flows resulting from co-digestion of wastewater solids with organic waste. Benefits From our strong history of developing and delivering comprehensive resource recovery projects, the Anaergia team is confident in our unique ability to provide the following key benefits to the City through our team’s unmatched industry qualifications, broad capabilities, and tailored approach for the City: • Maximize revenue to the City, through: o Enhanced biogas production through Anaergia’s Omnivore® high-solids wet digestion and high-yield BUG upgrader o Delivery of increased feedstock and resultant RNG, with feedstock certainty leveraging Anaergia’s organics recovery and pre-processing technology in proposed partnership with Basin Disposal Inc. (BDI) o Valorization of all (100%) biogas via environmental attributes (EAs), federal and state programs (i.e., renewable and low-carbon fuel standards in WA, OR, and CA), offtakes with BDI for vehicle fueling, and offtakes with gas utilities and brokers • Achieve regulatory compliance, expand capacity as required for anticipated and future processors, and deliver capital infrastructure improvements through the delivery of requested upgrades at PWRF • Expedite realization of Project benefits through streamlined delivery, leveraging the Anaergia team’s extensive proven P3 experience with municipalities and key Project stakeholders (including Cascade Natural Gas, Regional Clean Air Agency, and WA Department of Ecology) • No upfront cost to City or Processors with full funding by Anaergia P3, and minimized impact to Processor rates with new revenue streams from net revenue share of RNG sales • Support regional compliance with organics recycling mandates (HB1799) • Support economic development in the community through revenue to the City, infrastructure to support growing and new businesses in the region, and high-tech green job creation – through a “closed loop” solution which leverages locally-generated industrial, commercial, and residential waste streams to create and return value to the community Anaergia Team As the project lead, Anaergia would be responsible for all significant phases of the project including financing, developing, designing, building, managing, operating, and maintaining the facility. More specifically, Anaergia would lead and ultimately be responsible for all project tasks including project management, project administration, construction management, operation and maintenance management, quality control, safety, environmental compliance, and subcontractor administration. Anaergia has robust experience providing these services for AD, RNG, and waste/wastewater processing facilities throughout the US and around the world. Anaergia would complement our Page 141 of 297 City of Pasco 4 RFP – PWRF Industrial Wastewater-to-RNG Project unmatched qualifications with support from our team members, AECOM and Biomethane, LLC (Biomethane), to enhance delivery of a successful Project for the City. While Anaergia would serve as design-builder, AECOM would provide detailed design and balance of plant, with a focus on the BNR portion of the facility to ensure achievement of required nitrogen levels and regulatory compliance. Biomethane would provide local presence and expertise for the Eastern Washington feedstock, utility, regulatory, and RNG sectors, to enhance Anaergia’s industry-wide experience. Biomethane would primarily support initial feasibility study and third-party engagements during development, though Anaergia would remain lead. Letters of support from Anaergia’s team members are provided in Appendix B. City’s Responsibilities As P3 provider, Anaergia would take on the majority of the responsibility associated with design, construction, operations, ownership, maintenance, and financing of the Project, as well as key third-party agreements, permitting, interconnection, environmental review, and RNG sales. Anaergia expects that the City would cooperate with Anaergia in good faith to support project success. The City would maintain the following key responsibilities (this list is not exhaustive): • Provision of site use and access, including unobstructed vehicle/roadway access • Provision of utility service • Provision of existing rotary drum screens for Project use • Final disposition of wastewater effluent from the Project (i.e., storage and irrigation) • Ownership of wastewater discharge permits and other permits as may be required to reside with the City due to the City’s continued site ownership • Support for permitting, interconnection, and environmental documentation and review Though no contribution is expected or required from the City, additional responsibilities would be negotiated should the City elect to contribute to financing. Schedule Assuming execution of the lease and RNG purchase agreement in Q3 of 2022, per the RFP, initiation of commercial operation is anticipated in early 2026. This schedule is based on Anaergia’s extensive experience delivering P3 projects of similar scope and size. While achieving operations in Q1 2024 operations as desired by the City is not expected to be attainable, Anaergia can support expeditious project delivery through our proven P3 model and proven best practices for design-build projects. Anaergia also understands that the City anticipates increased process flows in 2024 and intends to work with the City to explore options for an intermediate solution to handle the increased flows. Anaergia would strive to reduce project timeline to the extent possible through strict schedule control, lessons learned, and on-the-ground experience, while carefully managing risk to the City. Key elements of this approach include critical path method scheduling, front-loading long-lead time items, ordering key equipment during design, and conducting tasks in parallel as possible. As regulatory agencies often drive project schedules, early and proactive engagement of third-parties Page 142 of 297 City of Pasco 5 RFP – PWRF Industrial Wastewater-to-RNG Project is essential to incorporate permitting and environmental requirements, design elements, and accurately account for and manage external timelines. Further detail is provided in Section 5. Cost & Compensation Anaergia proposes to finance the delivery and operations of the Project at no upfront cost to the City or Processors. The proposed compensation approach is illustrated in the figure below. Anaergia would provide the BNR and AD systems at the PWRF via a lease with the City. Wastewater treatment would be provided in exchange for service fees from Processors. Service fees would be based on: (1) actual monthly and permitted annual flows for each Processor, (2) Anaergia operating costs, (3) Anaergia capital charge (including wastewater treatment project capital, debt service, equity repayment), and (4) Anaergia’s lease payment to the City. The proposed compensation approach shares the cost of financing the upgrades required to achieve environmental compliance with the Processors, per the City’s direction. This structure also provides new cash flow to the City via lease payment. Anaergia would provide the RNG facility, establishing an RNG sales agreement with the City to receive all biogas produced by the Project for RNG upgrading and sale to third parties. While Anaergia would retain all tax incentives and EAs, the economic value of these benefits would be passed onto the City and processors via reduced Project costs and increased revenue. Fifty percent (50%) of RNG facility net revenue would be provided to the City and Processors. Net revenue is defined as RNG facility revenue (including sale of both commodity and EAs), less Anaergia operating costs and capital charge (including RNG facility capital, debt service, and equity repayment). The division of the 50% net revenue share between the City and Processors would be established during negotiations. Under the proposed compensation approach, Anaergia is fully responsible for financing the RNG facility, the City receives new revenue streams, and Processors receive new revenue streams to offset and minimize the cost of capital upgrades required for regulatory compliance (i.e., AD and BNR systems). Figure 2: Anaergia's Proposed Project Compensation Page 143 of 297 City of Pasco 6 RFP – PWRF Industrial Wastewater-to-RNG Project 2. Identification of Anaergia The Developer Anaergia Services, LLC (Anaergia), whose direct parent company and 100% owner is UTS Bioenergy Holdings, LLC, holds a primary business office located at 705 Palomar Airport Road, Suite 200, Carlsbad, CA 92011 USA and its website is www.anaergia.com. The main point of contact for Anaergia is Yaniv Scherson, Chief Operating Officer, 949-874-1118, yaniv.scherson@anaergia.com. Mr. Scherson is responsible for the RFP response and would oversee negotiation of the Lease and RNG Agreement, if Anaergia is selected. If awarded the project with the City of Pasco (City), Anaergia would create a special purpose vehicle (SPV) to lead project tasks, including the design, site preparation, equipment installation, permitting, construction, commissioning, financing, marketing, and operating and maintaining the proposed AD and RNG generation systems. The requested RFP Forms (Exhibit A and B, along with a W-9) are found in Appendix A. Page 144 of 297 City of Pasco 7 RFP – PWRF Industrial Wastewater-to-RNG Project 3. Anaergia’s Qualifications Anaergia is a Delaware limited liability company whose ultimate parent company is Anaergia Inc., a publicly traded Canadian company that has developed, implemented, and operated a suite of turnkey solid organic waste recycling facilities and AD solutions for over 25 years. With a proven track record of delivering solid waste, wastewater, and beneficial reuse projects on four continents and its portfolio of proprietary technologies and vertically integrated structure, Anaergia Inc.’s solutions create value to its partners in the form of landfill diversion, renewable energy, high- quality fertilizers, and clean water. Anaergia Inc. and its subsidiaries like Anaergia are uniquely positioned to provide unmatched solutions in the most pressing organics resource recovery challenges, as exemplified by their 1,700 worldwide references. Anaergia has brought together a talented team of professionals in process engineering, finance, plant operations, and manufacturing who strive to fulfill the company’s mission of combatting climate change through innovative organics management practices and renewable energy production. Anaergia offers end-to-end waste management and resource recovery solutions, including flexible technical and project delivery approaches to suit the City’s needs. A full list of reference facilities detailing our experience in each of these areas is provided in Section 3.7. Technology Development Equipment Manufacturing Process Engineering Project Management Project Financing Plant Operation Figure 3: Anaergia's Core Capabilities Figure 4: Anaergia Facilities in North America Page 145 of 297 City of Pasco 8 RFP – PWRF Industrial Wastewater-to-RNG Project 3.1. Equipment Design & Manufacturing Anaergia and its subsidiaries develop, design, and manufacture technologies and equipment to maximize the effectiveness and reliability of core waste treatment processes, including pre- processing of municipal solid waste (MSW) and SSO, organics polishing, high-solids wet AD, nutrient recovery, biogas conditioning, combined heat and power generation, RNG production and pipeline injection, digestate management, and wastewater treatment. Anaergia’s key in-house equipment and technologies include Organics Extrusion (OREX™) press, Organic Polishing System (OPS™), Omnivore® anaerobic digester (comprised of high-solids mixers and Sludge Screw Thickening (SST)), Sludge Screw Dewatering (SSD), ammonia recovery (AMR), membrane bioreactor (MBR), Biogas Upgrading (BUG™) system, and sludge pyrolysis. Anaergia’s approach to the development and integration of its unique technologies is unparalleled in the waste, wastewater, and resource recovery industries. 3.2. Facility Design, Engineering and Permitting Anaergia is recognized for engineering and delivering turn-key waste processing solutions that are highly versatile, efficient, and reliable. Anaergia offers unique processing solutions developed through a world-class innovation and product development program. Anaergia has a global team of engineers and technologists with deep domain expertise in process design and integration of both Anaergia and third-party process technologies and equipment. These broad capabilities allow Anaergia to offer unparalleled and complete integrated solutions to our customers and to our own facilities. Anaergia has in-house expertise and engineering capabilities to establish design bases and develop 30% design packages. From there, we select a qualified EPC contractor and detailed design firm to complete the design-build process. Figure 5: Anaergia's Technologies and Solutions Page 146 of 297 City of Pasco 9 RFP – PWRF Industrial Wastewater-to-RNG Project 3.3. Project Development, Delivery and Execution Anaergia has delivered projects that are at the forefront of the industry including some of the largest and most complex facilities of their kind for both public and private clients. Anaergia has overseen these projects from conceptualization and has led the projects through all stages of project execution including permitting, financing, engineering, construction, and operations/maintenance. Anaergia has executed projects using traditional and alternative project delivery methods including capital equipment and system sale, Design-Build (DB), Design-Build- Operate-Maintain (DBOM), Design-Build-Operate-Maintain-Finance (DBOMF), Design-Build-Own- Operate (DBOO), Design-Build-Own-Operate-Maintain-Finance (DBOOMF) and Operate-Maintain (OM). Anaergia’s deep global experience and strong local presence, combined with the flexibility and know-how to offer alternative project delivery methods brings unparalleled experience in the marketplace for a trusted and reliable partner. 3.4. Operation and Maintenance Anaergia has broad experience in the operations and maintenance of organics processing facilities, AD facilities, and bioenergy facilities. Anaergia provides a multitude of services to clients including remote technical support, local operational support and staffing, and full facility operations and maintenance services, both for client owned and self-financed facilities. Anaergia also provides technical support for over a thousand installations globally where Anaergia equipment is utilized for organics processing and AD. With the in-house expertise and lessons learned through the operation of similar facilities, Anaergia can identify and propose optimal design upgrades and operational parameters. Figure 6: Anaergia's Rialto Bioenergy Facility (Largest Food Waste AD and Supplier of RNG Derived from Landfill Diverted Organics in North America) Page 147 of 297 City of Pasco 10 RFP – PWRF Industrial Wastewater-to-RNG Project 3.5. Key Personnel Anaergia has brought together a highly talented team of professionals in all stages of AD and RNG projects. Certain areas of expertise include commercial development, siting and permitting, preliminary engineering design, project financing, manufacturing, construction, and operations. Anaergia’s staff is composed of technical and commercial experts that have been collaborating and completing AD and RNG projects throughout North America, and have significant proven experience to excel at the proposed project with the City. Anaergia’s approach to provide design, financing, construction, marketing, operations and maintenance services would draw upon its experience with similar projects at RBF and VVWRA with a local support team and dedicated staff throughout project design, execution, and operation. Anaergia operates various plants in North America, as shown in Section 3.7. Anaergia also provides technical support for over a thousand installations globally where Anaergia equipment is utilized for organics processing and anaerobic digestion. In addition to engineering and implementing best value solutions, Anaergia has the in-house expertise to design and implement optimized sequences of operation and ensure reliable long-term systems operations. The key individuals proposed for the Project and their qualifications are detailed in Table 1. Dr. Yaniv Scherson, Anaergia’s Chief Operating Officer, would be the main point of contact between the City and Anaergia, and responsible for overseeing the development and execution of the project, including financing. Andrew Dale would lead the process design for the project, including coordination with engineering subcontractors supporting detailed design. Jeremy Metts would oversee Project Management, particularly for the construction phase, and be responsible for completing the project on schedule and on budget. John Hutson would lead the operations team to establish and maintain successful project operations for the project term. The rest of the project team would be comprised of key individuals responsible for project and design reviews, equipment selection, and operations. Please note we expect all listed personnel would be able to contribute the level of time commitment needed to meet the requirements and objectives for the project. Resumes for these key personnel are included in Appendix C. Table 1: Personnel Summary Personnel Name Personnel Title Personnel Responsibilities Qualifications Yaniv Scherson, Ph.D., P.E. Anaergia – Chief Operations Officer Project Executive -15 years of experience -Direct oversight on very similar solid waste and anaerobic digestion projects -Civil P.E., Ph.D. work in wastewater and organic waste Jeremy Metts, MBA, P.E. Anaergia – Managing Director Project Management -15 years of experience -Managed over $300M of solid waste projects -Civil P.E. Andrew Dale, P.E. Anaergia – Director, Application Engineering Engineering and Environmental Review/Permitting -Wastewater design with >15 years of experience and >30 WWTP plant designs with co-digestion for organics processing -Civil P.E. Page 148 of 297 City of Pasco 11 RFP – PWRF Industrial Wastewater-to-RNG Project Juan Josse, P.E. Anaergia – Chief Engineer Engineering Overview -20 years of experience in municipal and industrial wastewater treatment research, design, and process -Holds patents for anaerobic biological fluidized bed reactor and organic slurry treatment John Hutson Anaergia – Director, Plant Operations Operations Management -25 years of experience in Plant Operations Margaret Laub Anaergia – Project Development Manager Project Development -6 years of experience, including project, contract, and account management -B.A. in Environmental Engineering Michael Celli AECOM – Senior Project Manager Process/Mechanical /Civil Design - 15 years of experience - P.E. in Washington David Lycon AECOM – Senior Process Engineer Chemistry / Mechanical Engineering - 22 years of experience - Ph.D. in chemical and mechanical engineering - P.E. in Washington Kathlyn Kinney Biomethane – Founder & Consultant Project Executive - 10 years of experience in feasibility study, economic assessment, and project development with municipalities, developers, and utilities -B.S. in Environmental Science, MBA with specialization in Sustainable Systems 3.6. Project Team As stated in Section 1, the Project Team would consist of Anaergia as the Project lead, with AECOM providing design and balance of plant, and Biomethane providing project development support. A Project Team organizational chart and additional qualifications are included below. AECOM AECOM is a top-tier design solution provider for wastewater treatment and resource recovery. During the past 20 years, they have developed and refined alternative delivery models that have been successfully applied to projects with a combined value of more than $1.75B. AECOM’s experience working across the full spectrum of roles on wastewater, RNG, and organic waste diversion projects, provides a significant knowledge base and professional expertise that would be brought to bear and prove to be invaluable to the Project. AECOM has global experience with a wide range of wastewater treatment and nutrient removal technologies. This includes first-hand delivery experience in the design and balance of plant for BNR, SBR, DAF, MBR, and anaerobic digesters. AECOM has performed the role of design engineer, client’s consultant, and project management services on numerous wastewater treatment projects. Biomethane Biomethane is led by Kathlyn Kinney, an experienced local consultant that would lead efforts related to permitting, interconnection, and sales agreements. Biomethane’s experience in Eastern WA, including with local permitting agencies and supporting feasibility study for municipal and Page 149 of 297 City of Pasco 12 RFP – PWRF Industrial Wastewater-to-RNG Project industrial food wastewater generators, enriches the Project Team’s local presence, regulatory experience, and communication channels for a successful Project. Biomethane would support the Anaergia team in completing the following tasks: • Feasibility study • Permitting and environmental review documentation and coordination • Interconnection and offtake agreement coordination • Regulatory compliance assurance Biomethane has experience working with relevant Project stakeholders, including Cascade Natural Gas and WA Department of Ecology, as well as numerous municipalities in the Pacific Northwest to support development of municipal wastewater, industrial/process wastewater, and RNG projects. • Spokane County, WA - municipal wastewater • City of Bend, OR - municipal & brewery wastewater • City of Quincy, WA - food processing wastewater • City of Wenatchee, WA – municipal wastewater • City of Airway Heights, WA – municipal wastewater 3.7. References Anaergia has developed a strong portfolio of biogas and RNG projects with over a decade of experience designing, constructing, financing, and operating anaerobic digestion facilities with municipal wastewater treatment plants such as the City’s Process Water Reuse Facility (PWRF). Anaergia’s unparalleled RNG expertise includes California’s first wastewater co-digestion to pipeline RNG project with Victor Valley Wastewater Reclamation Authority (VVWRA) injecting up to 340,000 MMBTU of carbon-negative RNG into the Southwest Gas grid; as well as Anaergia’s Rialto Bioenergy Facility (RBF), the largest organic waste to RNG facility in the US, injecting up to 985,000 MMBTU annually of carbon-negative RNG to the SoCal Gas pipeline. Tables 2 and 3 provide descriptions on three (3) Anaergia RNG facilities, and Tables 4-8 provide additional detail on the reference projects as requested by the RFP. Each of these facilities is currently operating. Anaergia provided design, build, own, operate, and finance services for each RNG facility. Anaergia’s deep experience delivering and operating RNG projects similar in scale and scope to that of the Project is demonstrated through Anaergia’s provided references. Additional details on these reference projects are included in Appendix D. Additional information regarding Anaergia team member expertise in complementary areas – including RNG project development and wastewater treatment design – is provided as well. Page 150 of 297 City of Pasco 13 RFP – PWRF Industrial Wastewater-to-RNG Project Table 2: Anaergia Project References Project Contact Location Capacity/Output Cost (USD) Project Description Anaergia’s Rialto Bioenergy Facility (RBF) Arun Sharma President Anaergia arun.sharma@anaergia. com (858) 207-7843 Rialto, CA • 200,000 TPY of organics • 100,000 TPY of biosolids • 4.6 MW Power • 985,000 MMBtu/year pipeline RNG • Treated process wastewater $185M 300,000 TPY organics recycling facility processing organic waste from MSW, SSO, and biosolids via AD to produce up to 4.6 MW of electricity and 985,000 MMBTU/year of pipeline-injected RNG. Process wastewater treatment, including DAF and MBR. RNG conditioning, upgrading, and pipeline interconnection. RNG sold to multiple offtakers by Anaergia. Facility designed, build, owned, financed, and operated by Anaergia. Plant Operational 2020. Anaergia’s VVWRA Biogas Project (Phase 1) Darron Poulsen General Manager VVWRA dpoulsen@vvwra.com (760) 246-8638 Victorville, CA • 12 MGD wastewater • Phase 1: o 1.6 MW Power o 36,000 TPY organics • Phase 2: o 340,000 MMBtu/year pipeline RNG o 87,500 TPY organics Phase 1: $2M Phase 2: $25M Phase 1: 1.6 MW CHP facility located at the VVWRA WWTP converting biogas from anaerobic co-digestion into renewable electricity and heat for the wastewater plant. Phase 1 Operational 2015 After Phase 1 exceptional success, high-solids wet AD upgrades to increase capacity and biogas output for RNG upgrading. Biogas conditioning, RNG upgrading (Anaergia BUG™), and pipeline interconnection, with RNG sales and offtake managed by Anaergia. Lease and RNG revenue share provided to VVWRA. Phase 2 Operational 2021. Anaergia’s Rhode Island Bioenergy Facility (RIBF) Alex MacFarlane Director, Project Development Anaergia Alex.macfarlane@anaer gia.com 646-236-3439 Johnston, RI • 120,000 TPY SSO and MSW • 3.2 MW Power • 300,000 MMBtu/year pipeline RNG $44M 120,000 TPY organics recycling facility processing organic waste from MSW and SSO via AD to produce up to 3.2 MW of electricity and 300,000 MMBTU/year of pipeline-injected RNG. Includes biogas conditioning and upgrading with Anaergia’s BUG™, and Fibracast membrane bioreactor for the WWTP. Facility designed, built, owned, financed, and operated by Anaergia. Plant currently operational and generating biogas with full operations expected 2023 Page 151 of 297 City of Pasco 14 RFP – PWRF Industrial Wastewater-to-RNG Project Table 3: Anaergia Scope for Reference Projects Project Design Build Own Operate Finance AD WWT RNG Permitting Revenue Share Feedstock RNG Offtake RBF      New New     VVWRA      Upgrades      RIBF      Upgrades Upgrades     Table 4: Anaergia Reference #1 – Rialto Bioenergy Facility (RBF) Project Location Rialto, CA Project Type DBOOF / Lease with City of Rialto Facility Description 300,000 TPY organics recycling facility processing organic waste from MSW, SSO, and biosolids via AD to produce up to 4.6 MW of electricity and 985,000 MMBTU/year of pipeline-injected RNG. Process wastewater treatment, including DAF and MBR. RNG conditioning, upgrading, and interconnection. Facility designed, build, owned, financed, and operated by Anaergia. Size 6 acres Owner Rialto Bioenergy Facility, LLC (subsidiary of Anaergia) Energy Purchaser Element Markets, University of California, Anaheim Public Utilities, Southwest Gas Commencement of Operations October 2020 Project Uptime Facility is fully operational 24/7 Capacity Factor Ramp up ongoing to design capacity of 985,000 MMBTU / year Environmental Compliance Considerations Solid Waste Permit Effluent Discharge Permit Air Permits O&M Provided by Anaergia – full facility Compensation to Facility Owner Owned by Anaergia Contact Arun Sharma President, Anaergia arun.sharma@anaergia.com (858) 207-7843 Page 152 of 297 City of Pasco 15 RFP – PWRF Industrial Wastewater-to-RNG Project Figure 7: Anaergia's RBF Page 153 of 297 City of Pasco 16 RFP – PWRF Industrial Wastewater-to-RNG Project Table 5: Anaergia Reference #2 – Victor Valley Wastewater Reclamation Authority (VVWRA) Project Location Victor Valley Wastewater Reclamation Authority, Victorville, CA Project Type DBOOF / P3 and Lease with Municipal Agency Facility Description • Phase 1: 1.6 MW CHP facility located at the VVWRA 12 MGD wastewater treatment plant converting biogas from anaerobic co- digestion into renewable electricity and heat for the wastewater plant. • Phase 2: After exceptional success in the first phase of the project, high-solids wet AD upgrades to increase capacity and biogas output up to 340,000 MMBTU/year of RNG to 1,200 scfm. Biogas conditioning, RNG upgrading (Anaergia BUG™), and pipeline interconnection, with RNG sales and offtake managed by Anaergia. Lease and RNG revenue share provided to VVWRA. Size 0.25 acres (lease for RNG facility), plus additional retrofits and capital improvements within existing plant equipment footprints Owner • AD and WWTP: VVWRA • Biogas Conditioning and RNG Upgrading: SoCal Biomethane, LLC (subsidiary of Anaergia) Energy Purchaser Southwest Gas Commencement of Operations • Phase 1: 2015 • Phase 2: Q4 2021 Project Uptime Facility is fully operational 24/7 Capacity Factor Ramp up ongoing to design capacity of 340,000 MMBTU / year Environmental Compliance Considerations Air Permit for RNG facility emissions control (thermal oxidizer and safety flare) O&M Provided by Anaergia for biogas conditioning and RNG upgrading Compensation to Facility Owner Owned by Anaergia Contact Darron Poulsen General Manager, VVWRA dpoulsen@vvwra.com (760) 246-8638 Page 154 of 297 City of Pasco 17 RFP – PWRF Industrial Wastewater-to-RNG Project Figure 8: Anaergia's BUG™ at VVWRA Page 155 of 297 City of Pasco 18 RFP – PWRF Industrial Wastewater-to-RNG Project Table 6: Anaergia Reference #3 – Rhode Island Bioenergy Facility (RIBF) Project Location Johnston, RI Project Type DBOOF / Lease with local land owner Facility Description 120,000 TPY organics recycling facility processing organic waste from MSW and SSO via AD to produce up to 3.2 MW of electricity and 300,000 MMBTU/year of pipeline-injected RNG. Includes biogas conditioning and upgrading. Facility designed, built, owned, financed, and operated by Anaergia. Size 7 acres developed Owner Rhode Island Bioenergy Facility, LLC (subsidiary of Anaergia) Energy Purchaser National Grid Power Purchase with RNG offtake not yet public Commencement of Operations • Facility currently operational • Upgrades by Anaergia - expected completion 2023 Project Uptime Facility currently operational at part load during construction of upgrades. Final uptime to be established in 2023 Capacity Factor Facility currently operational at part load during construction of upgrades. Final capacity factor to be established in 2023 Environmental Compliance Considerations Solid Waste Permit Effluent Discharge Permit Air Permit O&M Provided by Anaergia – full facility Compensation to Facility Owner Owned by Anaergia Contact Alex MacFarlane Director, Project Development Anaergia Alex.macfarlane@anaergia.com 646-236-3439 Page 156 of 297 City of Pasco 19 RFP – PWRF Industrial Wastewater-to-RNG Project Figure 9: Anaergia's RIBF Page 157 of 297 City of Pasco 20 RFP – PWRF Industrial Wastewater-to-RNG Project Beyond Anaergia’s robust qualifications for operational RNG facilities, the Anaergia team would be supported by AECOM’s rich experience in supporting detailed development, design, and delivery of both BNR and comprehensive resource recovery projects similar to that requested by the City. Table 7: AECOM Reference #1 – North End Water Pollution Control Centre – Centrate Nitrogen Removal Project Location Winnipeg, Manitoba, CAN Project Type Design, construction, commissioning Description Ammonia-rich centrate from anaerobic digestion of municipal centrate is treated for ammonia and nitrogen removal. Originally the plant operated in the nitrification and denitrification mode. Recently operation has changed to nitritation and denitritation mode, to save chemical use for nitrogen removal. Facility comprises two SBRs operating in parallel. Size 0.75 MGD Owner City of Winnipeg Commencement of Operations August 2008 Environmental Compliance Considerations SBRs remove 1900 lb/d nitrogen per the City’s permit O&M O&M by City. The main consumables are electrical energy, methanol (for N removal) and soda ash (for pH control). Table 8: AECOM Reference #2 – Landfill Leachate Facility Project Location Confidential Landfill, IN Project Type Design-build Description Design and construction of new landfill leachate treatment system for removal of BOD5 and ammonia prior to discharge to the municipal sewer system. Treatment system includes influent equalization, a single-tank SBR system utilizing unit process monitoring and control to maximize treatment performance, effluent equalization, and aerated sludge storage. A heat exchanger provides heat to the biomass during cold temperatures to maintain consistent nitrification. Owner Private Environmental Compliance Considerations Required to meet municipal discharge limits for ammonia and BOD O&M O&M by Owner Page 158 of 297 City of Pasco 21 RFP – PWRF Industrial Wastewater-to-RNG Project 3.8. Continued Operations Anaergia does not have any RNG projects that have terminated operation within the last 10 years, prior to expiration of their RNG utilization agreements. Anaergia does not have any RNG project where, in the last 10 years, Anaergia was awarded the RNG utilization rights and it took longer than three years to bring the RNG project online, and/or where RNG utilization rights agreements were terminated due to failure to bring an RNG project online in a timely manner (or for any other reasons). 3.9. Financial Reports As a wholly-owned, indirect subsidiary of Anaergia Inc., Anaergia does not report financial results. All financial reporting occurs through the ultimate parent entity Anaergia Inc. Anaergia Inc. is a publicly traded Canadian company and its IPO Prospectus is a public document and can be provided upon request. Please see Appendix E for copies of Anaergia Inc.’s audited financial reports for the years 2019-2021. Anaergia Inc.’s latest annual revenue was $153,581,000 CAD in 2021. Page 159 of 297 City of Pasco 22 RFP – PWRF Industrial Wastewater-to-RNG Project 4. Description of Proposed Project Anergia proposes to design, build, own, operate, and finance the Project at PWRF and provide proprietary Anaergia technology to achieve the desired capability. Based on our experience developing and delivering projects of similar scope and scale throughout the Western US and beyond – including RBF, as detailed in Section 3.7 – Anaergia is unmatched in our proven capability to deliver the Project requested by the City: (1) anaerobic digestion; (2) biological nitrogen removal; and (3) RNG upgrading and interconnection. Further, Anaergia proposes to secure firm organic feedstock for co-digestion with wastewater solids through a proposed partnership with BDI and deployment of proprietary OREX™ technology in the region. This unique offering from the Anaergia team would significantly enhance RNG production potential and reliability of the Project, increasing revenue sharing opportunity with the City, enhancing local economic development, and supporting organics diversion goals within the region. The design basis for the key project components is provided in Table 9 below. The system was sized to accommodate maximum month conditions (12.2 MGD) plus co-digestion of 132 tpd (12% TS) food waste. Appendix G shows a detailed block flow diagram (BFD) which illustrates the process, including proposed technologies, major equipment, and design capacities and flows for each component. The design basis is based on provide data and subject to validation during design based on site conditions, influent quality, available organic feedstock, etc. Table 9: Design Capacities, Sizing, & Dimensions Site Size / Dimensions Approximately 10 acres, subject to site investigations Anaerobic Digestion Technology: Anaergia Omnivore® high-solids wet AD (mesophilic) Capacity: 3-2.3 MGal (25-day retention) Biological Nitrogen Removal Technology: SBR Capacity: 4-8.4 MGal tanks Biogas Conditioning Technology: Caustic desulfurization scrubber, ammonia removal, activated carbon VOC removal, drying and cooling Capacity: 2,000 scfm biogas RNG Upgrading Technology: Anaergia BUG™ 3-stage membrane upgrader Capacity: 2,000 scfm biogas Food Waste Receiving for Co-Digestion Technology: Liquid reception skid (with rock trap, course screen, grinder, and pump) and storage tank (insulated, with mixer) Capacity: 132 tpd polished food waste slurry (12% TS) • Assumes 100 tpd SSO (80 tpd SSO from BDI, plus 25% anticipated growth), diluted to 12% TS • 50,000-gal storage Expected Biogas Production ~1,875 scfm Expected Annual RNG Production ~317,000 MMBTU • RNG production is anticipated to be consistent over 15-year period, pending changes in process water and feedstock volumes and quality Page 160 of 297 City of Pasco 23 RFP – PWRF Industrial Wastewater-to-RNG Project 4.1 Key Technologies Below sections detail key technologies proposed for the Project. As a leader in resource recovery, Anaergia offers many proprietary technologies, which enables us to provide unmatched performance guarantees and exceptional service response. We complement our in-house equipment offerings with third-party technologies selected for the specific application, such as the proposed biological nitrogen removal (BNR) system. Appendix F includes additional detail on proposed technologies. High-Solids Wet Anaerobic Digestion Anaergia would provide anaerobic digesters to stabilize and reduce the mass of solids removed through the wastewater treatment process, and co-digestion of external organic waste. Anaergia proposes insulated, bolted steel Omnivore® high-solids wet anaerobic digesters (total volume 6.9 MGal), which pairs solids pre-thickening via sludge screw thickener (SST) with Anaergia’s high-solids submersible propeller mixers to provide efficient digestion for anticipated PWRF loads in a third of the tank volume of conventional digestion. The result is enhanced volatile solids reduction (VSR) and increased biogas production with a limited impact on PWRF footprint. Further, high-solids digestion reduces capital cost by decreasing required digester volume, supporting improved revenue sharing with the City. The AD system would be sized to support anticipated growth in process wastewater loads plus organic feedstock. An adjacent gas storage membrane would store biogas produced via AD, prior to conditioning and upgrading. Omnivore® High-Solids Digestion: Anaergia’s Omnivore® is an advanced high-solids wet AD solution (typically operating around 6% TS as compared to conventional digestion around 2-3% TS). The high-efficiency platform combines Anaergia’s industry leading high-solids mixers and thickening systems to triple solids loading capacity and biogas production in existing digesters. Omnivore® uses increased pre-thickening or recuperative thickening to reduce the amount of unnecessary liquid in the digester, increasing solids retention time (SRT) while reducing hydraulic retention time (HRT). This creates additional volume for increased sludge loading, or co-digestion of food waste. Anaergia’s proprietary high-efficiency submersible mixers are utilized to ensure proper mixing is maintained in the much more viscous high-solids conditions. Figure 10: Camden County WWTP AD and Co- Generation Facility Page 161 of 297 City of Pasco 24 RFP – PWRF Industrial Wastewater-to-RNG Project High Solids Mixing: Anaergia’s advanced high solids mixer is employed to effectively move material within digesters, even in viscous substrates resulting from applications such as high-solids wet digestion and food waste co-digestion, as proposed for the PWRF. A submersible propeller mixer with gearless direct drive motor, Anaergia’s mixer boasts the highest efficiency in its class, delivering effective mixing, dynamic control, adjustable positioning, and easy access via service box for maintenance and inspection. Anaergia’s mixers deliver an unmatched mixing standard in the market, guaranteeing 90% volume above critical velocity thus maximizing gas yield, solid destruction, and digester stability. Effective, thorough mixing is essential to maintaining appropriate conditions for AD and achieving volatile solids reduction (and therefore biogas production). Anaergia mixers reduce O&M by resuspending grit, preventing stratification, and enabling access without taking digesters out of service. Wastewater Treatment & Biological Nitrogen Removal As shown in the BFD in Appendix G, Anaergia proposes a wastewater treatment train comprised of: (1) existing rotary drum fine screens, (2) dissolved air flotation (DAF) clarification, and (3) BNR system. Solids removed during these processes would be fed to the high-solids AD (described above) for co-digestion with organic waste, to produce biogas. Anaergia proposes a sequential batch reactor (SBR) to nitrogen from DAF effluent and filtrate to a maximum level of 28 mg/L, per the RFP. The design assumes food waste co-digestion and sufficient nitrogen removal capability to address increased nutrient loading associated with both process water and food waste. While Anaergia currently proposes an SBR for nitrogen removal, third-party technology selection would be validated during design. Renewable Natural Gas Upgrading & Pipeline Interconnection Anaergia proposes a biogas conditioning and upgrading facility at PWRF, employing Anaergia’s unique and proven biogas upgrading (BUG™) technology. Anaergia’s BUG™ system is operating at Victor Valley Wastewater Reclamation Authority (VVWRA), having passed the 40-day Southwest Gas for interconnection, demonstrating consistent achievement of utility RNG specifications. The system first removes impurities from biogas produced through the anaerobic co-digestion of municipal wastewater biosolids and external organic waste (i.e., food waste), before stripping Figure 11: Anaergia’s PSM Mixer and Service Box Page 162 of 297 City of Pasco 25 RFP – PWRF Industrial Wastewater-to-RNG Project carbon dioxide from the gas to produce pipeline-quality RNG for injection into the utility interconnection point. RNG upgrading and interconnection would provide sufficient capacity for anticipated future loads and external food waste. Identifying the appropriate biogas upgrading technology is essential as the renewable natural gas must meet stringent standards for pipeline injection. Biogas must be nearly free of carbon dioxide, hydrogen sulfide, trace gases, siloxanes, and other VOCs. Anaergia’s integrated systems and technology meets these challenges while providing a cost-effective, easy to operate, and robust biogas upgrading system. Generally, the biogas is conditioned through condensate and H2S/VOC removal systems, along with a compressor, prior to upgrading to pipeline-quality RNG via Anaergia’s BUG™. A thermal oxidizer would be provided on the BUG™ for emissions control. Upon injection into the gas grid, the RNG can be used as either as fuel for transportation fleets or for residential applications and contributes to Washington’s decarbonization goals. Anaergia financed, designed, built, owns, and operates these technologies at RBF (up to 3,500 scfm biogas) and VVWRA (up to 1,200 scfm). Anaergia’s proprietary BUG™ is operating at VVWRA. Biogas Conditioning: Biogas is conditioned to remove compounds which negatively impact the upgrader and RNG quality. Biogas is typically conveyed to iron sponge vessels, or other H2S removal systems, followed by carbon media vessels. Biogas is then transported to a skid which provides de-humidification, cooling gas to <59°F, before reheating the gas to 72°F. A biogas blower would be provided to overcome pressure losses for downstream equipment. Biogas then moves to a second skid for polishing, where an activated carbon vessel removes additional contaminants from biogas prior to entering the upgrading package. Anaergia’s conditioning train design would be customized based on gas quality produced at PWRF and utility requirements. The currently proposed biogas conditioning train is shown in the BFD in Appendix G. Figure 12: Biomethane Conditioning and Upgrading System Page 163 of 297 City of Pasco 26 RFP – PWRF Industrial Wastewater-to-RNG Project RNG Upgrading: Anaergia’s proprietary BUG™ biogas upgrading system produces RNG that meets the most stringent pipeline gas quality standards. The BUG™ is modular, constructed on a series of skids (compressor skid, high-pressure conditioning skid, and membrane skid) and can be delivered in an enclosure. This minimizes on-site construction and provides an operator friendly design. All BUG™ units are supplied with gas flow measurement and instrumentation for reliable process control and product gas quality assurance. Conditioned biogas is received by the BUG™ and converted into a methane rich RNG product, and a methane lean tail gas stream. The BUG™ compresses gas and conditions it to remove residual oil, moisture, and particulates. Biogas is then upgraded via two- or three-stage hollow fiber membranes with the highest CO2/CH4 selectivity. Tail gas rejected from the gas upgrader is primarily CO2 and released to atmosphere, or to an emergency flare if determined to be out of specification. Pipeline Interconnection: Anaergia would be responsible for interconnecting with the Cascade Natural Gas gas grid for RNG injection and sale. Anaergia would provide infrastructure to tie into the utility point of receipt, financing for pipeline extension from the PWRF to the existing utility transmission line (approximately 1.5 miles), and all required utility coordination. Anaergia would provide onsite RNG storage at the PWRF to accommodate pipeline injection cycles and scheduled/unscheduled system downtime. Any RNG that did not initially meet utility specifications (as measured at the utility point of receipt) would be recycled to either the gas storage membrane or the front of the biogas treatment train for further treatment, or flared as a last resort. Food Waste Co-Digestion Anaergia would further support an RNG project via a co-digestion program to increase project value, community benefit, and impact. By co-digesting food waste with process water solids, biogas (and therefore RNG) production can be significantly increased, enhancing project economics and Figure 13: Anaergia’s BUG™ at VVWRA Page 164 of 297 City of Pasco 27 RFP – PWRF Industrial Wastewater-to-RNG Project increasing benefits to the City. RNG value may also be increased by supporting landfill diversion mandated by HB 1799, resulting in a negative carbon-intensity score through state-based low- carbon fuel standards (including those in effect or being implemented in Washington, California, and Oregon), which often sustains higher price points than RNG from wastewater biogas alone. Anaergia has broad global and local experience delivering co-digestion solutions to enhance solids handling, energy generation, and fertilizer production at municipal wastewater treatment facilities, supported by an array of in-house technologies and robust network of haulers and feedstock providers, including from Anaergia’s solid waste processing OREX™ line. As a leader in organics recycling with a focus on the west coast, Anaergia can provide the necessary co-digestion infrastructure (i.e., liquids receiving station and storage) and coordinate transport and delivery of feedstock, including polished food waste slurry from BDI. Production of food waste slurry may utilize Anaergia’s OREX™ and OPS™ at an off-site organics processing facility to ensure feedstock quality, energy density, and low contamination levels in the feedstock. Anaergia’s proposed design assumes the co-digestion of organic slurry from 100 tpd raw (i.e., unprocessed) SSO. BDI currently collects 80 tpd SSO, and Anaergia has assumed 25% growth in available SSO due to HB 1799, which requires diversion of organics from landfill via source separation. The SSO which would be pre-processed offsite at BDI facilities, leveraging Anaergia equipment to remove grit, plastics, and other contamination and dilute the organics to pumpable, digestible slurry. The slurry would be transported in tanker trucks to PWRF for offloading into proposed liquids receiving and storage, prior to being fed to the proposed AD for co-digestion with wastewater solids. In the event of restricted digester capacity (e.g., scheduled cleaning or increased process wastewater loads), feedstock deliveries would be temporarily halted to ensure sufficient treatment capacity for Processors. This approach would maximize biogas production and revenue generation potential for the City via increased RNG sales. Anaergia would size facility systems to accommodate the anticipated impact on solids handling and gas production, and deliver the infrastructure necessary to receive, store, and pre-process food waste. Critically, Anaergia’s proposed Omnivore® high-solids digestion system creates flexible capacity within existing tankage and provides mixing capability to effectively mix digestate in co-digestion applications. During development, Anaergia recommends evaluating co- digestion of food waste from additional local haulers to further increase RNG production potential and support landfill diversion requirements. 4.2 Air Emissions & Air Permitting Strategy Anaergia is responsible for securing relevant permits and regulatory approvals for each of its projects, including implementation of best available control technology (BACT) and other design considerations to reach approval. For this reason, Anaergia engages with relevant regulatory and permitting agencies (i.e., Department of Ecology, Benton Clean Air Agency) beginning in development and throughout design to proactively identify requirements, confirm compliance, and submit relevant documentation. As discussed in Section 5, it is essential to account for permitting review and approval periods as these often drive project schedule. Anaergia defines reporting requirements in design to streamline operational data collection, reporting, and ensure continued permit compliance throughout the project life. Page 165 of 297 City of Pasco 28 RFP – PWRF Industrial Wastewater-to-RNG Project Anaergia has permitted two projects under South Coast Air Quality Management District (SCAQMD), one of the most stringent in the nation, as well as multiple other projects within California and throughout the US. Anaergia was solely responsible for receiving, managing, and complying with all necessary permits for RBF, a project which included new construction of AD, wastewater treatment, and RNG upgrading. As part of this project, the City of Rialto acted as the lead agency and was principally responsible for providing discretionary approval for the project. Anaergia worked with the City of Rialto to propose and certify an Environmental Impact Report, approve the Conditional Use Permit, approve the precise plan of design, and approve the Encroachment Permit. RBF received other permits including an Industrial User Wastewater Discharge Permit from the San Bernardino Valley Municipal Water District, a storm water and biosolids permit from the Santa Ana Regional Water Quality Control Board, and 24 distinct Permits to Construct and Permits to Operate from SCAQMD. Anaergia is in the process of finalizing 20 construction permits into operating permits, conducting final review and comment with the permit writer. Two additional construction permits are scheduled to begin in Q2-Q3 2022, related to pyrolysis at RBF – the first system of its kind to be permitted under SCAQMD. Based on the scope outlined in the RFP, air permits are anticipated to be necessary for the safety flares and RNG upgrader thermal oxidizer. The City would benefit from Anaergia’s success in permitting these systems in the nation’s strictest air districts, as well as Anaergia’s deep knowledge of emissions and air impacts of our own technologies like the BUG™. However, there is a precedent in the state for RNG generation projects to potentially reduce air permitting requirements, specifically related to odor control. Anaergia would more thoroughly explore these implications during development to reduce permitting burden as appropriate to potentially expedite project schedule and improved achievement of the City’s timeline goals. 4.3 Energy Sales Agreement Anaergia has deep experience in marketing RNG – both from wastewater plants and food waste AD facilities – to maximize value of the environmental attributes associated with the Federal Renewable Fuel Standard Program (RIN), California Low Carbon Fuel Standard (LCFS), Oregon Clean Fuels Program (CFP), and Washington Clean Fuel Standard (CFS) policies. Anaergia understands how to register RNG as D3 and D5 RINs pursuant to EPA biogas classification, as well as how to maximize the value of the gas under state-specific fuel standard programs that requires a site-specific life cycle analysis (LCA) to determine a site-specific carbon intensity. As a result, Anaergia would be able to maximize the value for pipeline RNG produced at the PWRF by monetizing both RIN and CFS credits, and securing feedstock that supports the intended environmental attribute pathways. Anaergia works with a network of brokers and directly with off-takers (including major gas utilities, public entities, and vehicle fleet owners) to market RNG once injected to the pipeline. Anaergia can offer commodity purchasing, environmental attributes, or bundled. Further, Anaergia can obtain a combination of both long-term offtakes and spot market pricing for RNG providing a necessary mix to enable additional financing options. Page 166 of 297 City of Pasco 29 RFP – PWRF Industrial Wastewater-to-RNG Project Anaergia would be responsible for registering the RNG produced at PWRF under the EPA RFS (as D5 RINs, based on the food processing wastewater and SSO feedstocks), Washington CFS, Oregon CFP, and California LCFS. Anaergia would coordinate pipeline interconnection and offtake (i.e., energy sales) of RNG produced at the PRWF, and manage the negotiated share of RNG sales revenue (including sale of both the commodity and environmental attributes) with the City. Energy sales agreements necessary to secure financing would be established during design according to the schedule provided in Section 5. As part of our partnership, Anaergia proposes to establish an offtake agreement with BDI to make a portion of the RNG available as vehicle fuel for the BDI fleet. This agreement incentivizes continued delivery of reliable feedstock to the PWRF. The proposed agreement would help to “close the loop” within the community, fueling sustainable waste collection and responsible disposal with the byproduct of the waste. Anaergia intends to identify additional fleets during development interested in RNG fueling. Further, due to Washington Utilities and Transportation Commission regulations requiring utilities to accept RNG and offer it on a voluntary basis, Anaergia anticipates establishing offtake agreements with local utilities (e.g., Cascade Natural Gas, Williams Gas). Further, national utilities (e.g., NW Natural, Fortis BC) and firms such as BP/IGI, Clean Energy Fuels, Trillium, and AMP have demonstrated interest in purchasing RNG. Anaergia would also partner with a broker to sell the commodity gas and environmental attributes on the voluntary and spot markets. Our anticipated energy pricing ($25-30/MMBTU) is based on (1) experience negotiating energy sales agreements in the US and Canada for RNG produced at RBF, VVWRA, RIBF, and elsewhere and (2) regulatory trends and precedent. California’s recently passed SB1440 proposes RNG pricing tiers starting at $26/MMBTU, based on findings of the most recent 2021 federal Interagency Working Group (IWG) estimate. British Columbia’s 2021 update to its Greenhouse Gas Reduction Regulation (GGRR) set the RNG price cap for purchasing utilities at CA$30/GJ, with allowable increases for inflation. Increasingly, regulated utilities such as those in CA, OR, and MI are able to procure RNG on a voluntary or mandatory basis at increased price points. Based on precedent within the industry, growing demand for RNG supply, and Anaergia’s robust experience securing favorable RNG energy sales agreements with third-party offtakers, Anaergia is confident in its ability to secure purchase of the RNG generated at PWRF to both support project financing and maximize revenue sharing with the City. 4.4 Financing Anaergia proposes to finance the P3 Project using a combination of debt and equity financing, as well as grants and incentives as available. Though not required, should the City desire to contribute to the project, this funding would support increased revenue sharing with the City. Anaergia’s financing capability is bolstered by our experience as a developer, our overall commitment to project execution, strength of our network of EPC contractors, and expert operators. Lenders demand high bonding capability, transparency, and integration experience from project proponents. Anaergia has demonstrated capabilities in developing and financing significant projects, including RBF, the largest food waste anaerobic digester facility in North America. RBF is owned, financed, and operated by Anaergia. Private funding sources for this $185M USD project Page 167 of 297 City of Pasco 30 RFP – PWRF Industrial Wastewater-to-RNG Project came from our network of financial partners and private equity from Anaergia. Public sources included tax-exempt Green Bonds issued by the California Pollution Control Financing Authority ($117M USD) and over $33M USD of grants, rebates, and incentives from public agencies. Anaergia has significant experience obtaining grants to finance its projects, including RBF and Escondido Bioenergy Facility (also partially financed using Green Bonds and various types of federal and state grants, rebates, and incentives). Additionally, Anaergia Inc.’s IPO and new market capitalization has established a strong company valuation and has positioned Anaergia strongly for project financing. Page 168 of 297 City of Pasco 31 RFP – PWRF Industrial Wastewater-to-RNG Project 5. Project Development Schedule Our proficiency in establishing and maintaining schedules stems in part from our experience successfully delivering numerous AD and pipeline RNG projects through multiple delivery methods. We are deeply familiar with the time required to thoroughly complete each task through project development and construction, as well as common obstacles that cause slippage. This robust experience allows us to both accurately forecast schedules as well as proactively work to avoid potential delays and build in efficiencies. In development, we engage our project execution team in creating a schedule to leverage their on-the-ground perspective. Further, our nimble project teams are structured to flex resources as necessary to ensure important tasks are completed and deadlines kept. While our projects are supported by an expert team of diverse skillsets, we provide each client a dedicated point of contact across each project phase to streamline communications and ensure ease of access. During development, we strive to respond to all communication within 24 hours under normal circumstances, and no more than 48 hours. The City would be kept informed of the schedule and progress. Beginning in the construction phase, we would provide two-week look aheads and regularly meet with the City to discuss anticipated activities and support needed (e.g., off-hours access, temporary service outages, etc.). 5.1 Managing Risk to the City Our strong schedule control is demonstrated by our successful delivery of construction of RBF – new AD, wastewater treatment, biogas upgrading, and RNG interconnection across approximately 6 acres – in just over 2 years, as well as the completion of VVWRA pipeline RNG facilities construction and interconnection in just 15 months from contract execution. We typically conduct a feasibility study following contract execution to reduce risk for all parties. The study would typically confirm initial scope, sizing, siting, and process flow (approximately 10% design level), assess potential “showstoppers,” and support a “Go/No Go” decision on project viability. The study is completed with the intent of confirming a mutually agreeable project concept. This serves to limit risk of indefinite encumbrance of RNG utilization rights by confirming project feasibility and overall approach early in development. If there is not concurrence on the project, the agreement may be terminated and nothing is owed. Further, in our experience, investing in early assessment supports expeditious delivery by identifying obstacles and potential mitigation strategies, and by establishing stakeholder buy-in from the get-go. Following execution of an RNG purchase agreement, we are capable of rapidly delivering an operational project to the City. Based on our experience delivering similar scope, we anticipate a feasibility study and initial design period of 2-3 months and overall construction durations of 24 months, pending final scope and project phasing. Combined, this is shorter than the extended durations typical for consultant evaluations and design-build procurement. Our aggressive but realistic project timelines are further supported by team continuity and our exceptional schedule management. Ultimately, this translates to reduced cost spent supporting extended development and procurement processes and enables the City to realize project benefits sooner. Page 169 of 297 City of Pasco 32 RFP – PWRF Industrial Wastewater-to-RNG Project 5.2 Proposed Schedule for the City A proposed schedule is provided below, with initiation of commercial operations in Q1 2026. The provided quarterly schedule captures both early and late completion dates within the identified quarter. While the commercial operations date (COD) does not achieve the City’s desired COD of Q1 2024, we are confident that the presented schedule is an aggressive but realistic timeline to achieve reliable operations. The project schedule is primarily driven by environmental review, permitting approvals, and establishment of interconnection agreements to secure an energy sales agreement (and revenue for the City). We would continue to look for efficiencies, including opportunities to phase construction, during development. Anaergia understands that the City anticipates increased process flows in 2024 and intends to work with the City to explore options for an intermediate solution to handle the increased flows. Page 170 of 297 City of Pasco 33 RFP – PWRF Industrial Wastewater-to-RNG Project 2022 2023 2024 2025 2026 Pasco PWRF Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Execution of RNG Purchase Agreement Feasibility Study & 10% Design SEPA Submittal of Permit Applications & Review 30% Design Interconnection Design & Agreement Execution of Energy Sales Agreement 30-100% Design Commencement of Construction Start Up / Commissioning Initiation of Commercial Operations Page 171 of 297 City of Pasco 34 RFP – PWRF Industrial Wastewater-to-RNG Project 6. Compensation to Processors Anaergia proposes the below compensation arrangement for the City and Processors, based on current understanding of scope, site conditions, wastewater volumes and quality, etc. and subject to validation. Anaergia provides open book prices and price transparency to our partners to support full trust, align incentives, and support long-term partnerships. The proposed approach would generate in new cash flows to the City and the Processors, while offsetting cost impact to Processors associated with necessary upgrades for capacity expansion and regulatory compliance. AD and BNR Compensation Anaergia proposes to finance, develop, deliver, and operate the requested AD and BNR systems via a P3 with the City. Anaergia would treat Processor wastewater received at the entrance to the existing drum screen building, before returning treated effluent to the City for final disposition. In exchange for treatment services, Processors would pay Anaergia service fees based on actual operating costs, capital charges, and lease payments associated with the AD and BNR systems, as outlined below. Service Fee Fixed / Variable Billing Basis Cost Basis Usage Fee Variable Actual Monthly Processor Wastewater Volume Anaergia Operating Cost (AD + BNR) Capacity Charge Fixed Permitted Annual Processor Wastewater Volume Anaergia Capital Charge (AD + BNR) • Project capital • Debt service • Equity repayment • Lease payment to City RNG Compensation Anaergia proposes to finance, develop, deliver, and operate the requested RNG conditioning and upgrading systems via an RNG purchase agreement with the City. Anaergia would receive all biogas (and associated environmental attributes) produced via AD at PWRF for treatment, pipeline injection, and sale. Anaergia would provide a share of 50% of net revenue, to be divided between the City and Processors. Net revenue is defined as total facility revenue (including sales of both the RNG commodity and environmental attributes) less RNG facility operating costs and RNG facility capital charges. The division of the 50% net revenue share between the City and Processors would be determined during negotiations. Page 172 of 297 City of Pasco 35 RFP – PWRF Industrial Wastewater-to-RNG Project Component Fixed / Variable Basis Revenue Variable RNG sales (subject to biogas production, quality, and commodity and environmental attribute markets) Operating Cost Variable Anaergia RNG facility operating costs Capital Charge Fixed • RNG project capital • RNG debt service • RNG equity repayment Net Revenue Variable Revenue, less operating cost and capital charge Net Revenue Share Variable 50% of net revenue to the City and Processors 50% of net revenue to Anaergia The overall Project compensation approach is illustrated below. Proposed Term Sheet Key elements of an initial proposed term sheet are provided below and subject to negotiations with the City. TERM • City to provide 20-year lease and RNG purchase agreement, plus two 5-year options, to Anaergia for project site and provision of biogas • City to provide easement(s) for vehicle access to project site as necessary Figure 14: Anaergia's Proposed Project Compensation Page 173 of 297 City of Pasco 36 RFP – PWRF Industrial Wastewater-to-RNG Project • City to provide easement(s) for pipeline from project site to interconnection point as necessary PROCESSOR WASTEWATER • Process wastewater to transfer from City to Anaergia at entrance to existing screen building • Anaergia to provide wastewater treatment as proposed to Processors to meet discharge requirements, as defined by the City • Treated wastewater effluent to transfer from Anaergia to City following BNR process, for final disposition (including storage as needed) THIRD-PARTY AGREEMENTS • Anaergia to secure interconnection agreement and execute interconnection • Anaergia responsible for all required environmental review and permitting processes, with reasonable coordination and support from the City • Anaergia to secure and manage organic feedstock agreements • Anaergia to secure and manage RNG offtake agreements • Anaergia to register for, obtain, and own all tax benefits, incentives, and environmental credits in connection with RNG, subject to net revenue sharing with the City and Processors OPERATIONS • Anaergia to receive all biogas produced by AD • Anaergia to condition and upgrade all biogas to pipeline-quality RNG and inject to utility natural gas grid • Anaergia to provide all O&M related to equipment provided through the Project (i.e., feedstock receiving, screening, biological nitrogen removal, AD, biogas conditioning, upgrading, and interconnection) • City to retain responsibility for all conveyance, pump stations, storage ponds, irrigation, and systems upstream or downstream of the Project PAYMENT • Anaergia to finance all Project scope and operations • Anaergia to provide lease payment to City • Anaergia to provide Compensation to the City and Processors of 50% Net Revenue Share (as defined above) • Division of Net Revenue Share between City and Processors to be defined during negotiations Page 174 of 297 City of Pasco 37 RFP – PWRF Industrial Wastewater-to-RNG Project 7. Attestation Anaergia attests that Yaniv Scherson, COO, has the authority to make the proposal; that the contents of the proposal are truthful and accurate; and that the proposal is valid for 180 days. Signature: __________________ Date: April 20, 2022 Name: Yaniv Scherson Title: Chief Operating Officer Page 175 of 297 City of Pasco 38 RFP – PWRF Industrial Wastewater-to-RNG Project Appendix A: RFP Forms Page 176 of 297 RFP 22-750, Exhibit A Signature and Submittal Page Page 1 of 1 RFP No: 22-750 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project Exhibit A Proposer Signature and Submittal Page We acknowledge that all Addenda through issued for this RFP have been examined as part of the proposal documents. Company: Address City State/Zip Authorized Representative Signature: Print Name Title Email: Phone: Fax: Anaergia Services, LLC 705 Palomar Airport Road, Suite 200 Carlsbad CA 92011 Yaniv Scherson COO yaniv.scherson@anaergia.com 949-874-1118 Page 177 of 297 RFP 22-750, Exhibit B Conflict of Interest Form Page 1 of 1 Exhibit B City of Pasco – Conflict of Interest Form Project Title: Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project RFP #: 22-750 The developer being contracted must check one of the boxes on the worksheet below. (company name) has no known or actual, potential, or reasonably perceived, financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project. or (company name) has a potential or reasonably perceived financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project, as described here: Our firm proposes to mitigate the potential or perceived conflict according to the following plan: or (company name) has an actual financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project, as described here: Anaergia Services, LLCX Page 178 of 297 City of Pasco 39 RFP – PWRF Industrial Wastewater-to-RNG Project Appendix B: Letters of Support Page 179 of 297 1024 W 11th Ave.,Spokane, WA 99204 / 425-765-7561 / biomethanellc.com April 21, 2022 Attention: Yaniv Scherson, Ph.D., P.E. Chief Operating Officer Anaergia Services LLC 705 Palomar Airport Road, Suite 200 Carlsbad, CA 92011 Subject: City of Pasco Request for Proposal Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project This letter affirms the role of Biomethane LLC as a key subcontractor to Anaergia Services LLC (Anaergia) or its affiliated entity for purposes of Anaergia’s proposal submitted in response to the City of Pasco Request for Proposal for Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project. Biomethane LLC’s scope of work within the project, if awarded to Anaergia, is intended to include the following elements, as further detailed in Anaergia’s proposal: ● Feasibility analysis ● Coordination of local and site-specific opportunities for cost savings and added revenue ● Engagement and compliance with local regulatory agencies ● Utility stakeholder involvement and interconnection pricing ● Optimal RNG offtake agreements ● Additional funding sources Biomethane LLC further affirms it intends to perform its scope of work as required to accomplish the objectives of Anaergia’s proposal, and will exclusively cooperate with Anaergia in implementing its obligations under separate agreement. We appreciate our shared mission of successfully delivering organic waste-to-energy projects and look forward to the opportunity to work together. If you have any questions or comments about the information presented in this letter, please do not hesitate to call me at 425-765-7561. Sincerely, ________________________________________________________________ Kathlyn Kinney Yaniv Scherson Consultant Chief Operating Officer BIOMETHANE LLC ANAERGIA SERVICES LLC 4/21/2022 4/21/2022 Page 180 of 297 Page 181 of 297 Page 182 of 297 Page 183 of 297 Page 184 of 297 Page 185 of 297 Page 186 of 297 Page 187 of 297 Page 188 of 297 Page 189 of 297 Page 190 of 297 City of Pasco 40 RFP – PWRF Industrial Wastewater-to-RNG Project Appendix C: Personnel Resumes Page 191 of 297 Dr. Yaniv Scherson Chief Operating Officer Dr. Yaniv Scherson is the Chief Operating Officer for Anaergia. Yaniv is based in Carlsbad, California where he leads Anaergia’s projects integrating organics recycling from solid waste with anaerobic digestion and wastewater for production of renewable power and renewable natural gas. Dr. Scherson leads Anaergia’s turnkey system offering and supports Anaergia’s Design, Build, Own, Operate, and Finance arm. He is a licensed professional engineer in California and holds Ph.D. and Master degrees from Stanford University. Dr. Scherson has published in leading peer reviewed journals, patents, and book chapters and has presented internationally as an invited speaker. Relevant Experience Anaergia – Managing Director Managed P&L for the western region of Anaergia managing business development, sales, project execution, operations, and project financing. Oversaw development of largest global organics market with construction of largest organics recycling to renewable energy digester facility in North America – Rialto Bioenergy Facility. Anaergia – Process Engineer Global process engineering for solid waste and wastewater and anaerobic digester integrated turnkey systems. Developed in house propriety tools and models unique to organic fraction of solid waste and co-digestion and mono-digestion of high strength organic feedstocks and high solids anaerobic digestion. Wrote publications and presented at conferences and special engagements nationally. Stanford University / Delta Diablo Wastewater Treatment Plant Led the development of a new wastewater treatment process at Stanford University that recovers renewable energy from nitrogen waste by converting ammonia to nitrous oxide, then combusting nitrous oxide with biogas. Established partnerships with three Bay Area municipal wastewater treatment facilities to pilot technology and worked with Veolia Environment. Won regional first prize in US DOE’s business plan competition. Brown and Caldwell – Senior Engineer Conducted research to help drive future project strategy and development. Supported data analysis, test plans, and projects. EBMUD Served as a technical consultant to develop a method that was used to evaluate a novel process for fuel recovery from wastewater through lab-scale studies and literature reviews for the East Bay Municipal Utility District (EBMUD). Specialization: Management, Finance, Contracting, Process Engineering, Design, Research Office Location: Carlsbad, California, USA Education: B.S., Mechanical Engineering & Materials Science UC Berkeley, 2007 M.S., Mechanical Engineering Stanford University, 2010 Ph.D., Mechanical Engineering Stanford University, 2010 Postdoctoral Scholar, Environmental Engineering Stanford University, 2014 Professional Associations: Registered Professional Civil Engineer California Water Environment Federation Industry Tenture: 15 Years Awards and Recognition: Forbes Magazine 30 Under 30: Energy “Rising Stars and Provocateur” OZY Media Siemens “Future Influencer” SLOAN Fellow Barry M. Goldwater Award Recipient Heisman Scholar Athlete Page 192 of 297 Specialization: Project Execution, Design, Management Office Location: Carlsbad, California, USA Education: B.S., Mechanical Engineering University of Arizona MBA California State University, San Marcos Industry Tenure: Since 2007 Professional Registration: Registered Professional Mechanical Engineer California Registered Professional Civil Engineer California Jeremy Metts Managing Director, Execution – North America Mr. Metts is the managing director for execution in North America. Jeremy is based in Carlsbad, California where he leads the execution group consisting of process engineering, automation engineer, project execution, and technical services for North America. He is responsible for P&L for projects and after sales services in North America. He has experience in municipal and industrial water/wastewater treatment plant design, natural gas distribution and transfer systems, mechanical/civil design, commissioninig and project management. He has a B.S. in mechanical engineering and an MBA as well as two professional engienering licenses in mechanical and civil engineering. Relevant Experience Anaergia Services – Director of Project Execution Responsible for P&L and providing strategy and leadership for project management, engineering, design, and commissioning for all projects in the Western USA region. Developed organizational strategies, procedures, and tools for continuous improvement and development of the project execution department. Led the design, construction and commissioning of largest organics recycling to renewable energy digester facility in North America, Rialto Bioenergy Facility. GP Strategies Corporation – Mechanical Engineering Manager & Project Manager Responsible for development, proposals, engineering, fabrication management, construction management, and commissioning of liquefied natural gas and compressed natural gas fuel stations and transfer facilities for all projects in North America. Responsible engineer in charge for design projects throughout the United State. Led the development and execution of the largest contract ever awarded to GP Strategies Alternative Fuels division. Malcolm Pirnie / Arcadis – Project Engineer Responsible for leading design and interactions with clients for water and wasterwater treatment projects in Southern California. Led startup and commissioning efforts including closeout SOPs, training, and troubleshooting for startup of new Ozone facility. Assisted with front end design, review of constuction schedule, and management of third party design consultants. Filanc Construction – Senior Project Engineer/Project Manager Senior project engineer for the large construction division working at the project site. Worked closely with project manager leading interactions with client, subcontractors, suppliers, and field construction team. Responsible for all submittals and RFIs, procurement, mechanical layout, and coordination with suppliers. All projects were in the wastewater industry including the DBIA award winning Pala Wastewater treatment plant. Page 193 of 297 Andrew Dale Director, Process Engineering Mr. Dale is the Director, Process Engineering for Anaergia, Inc. He has over 15 years of engineering experience in municipal and industrial wastewater treatment plant design, extraction of organics from municipal solid waste, mechanical/civil design, and project management. His project experience and expertise includes biological nutrient removal, anaerobic digestion, solids handling, biogas treatment and utilization including biomethane and combined heat and power applications. Mr. Dale has been published in several engineering journals and has given presentations at regional and national conferences on waste to energy projects. Relevant Experience Anaergia – Director, Process Engineering Mr. Dale oversees the engineering for the process design for all Anaergia Facilities, including capital improvement projects for Anaergia’s operating facilities. The process team also provides the technical engineering support for business development and permitting of new and proposed projects. Anaergia – Directior, Application Engineering Western USA Mr. Dale directly supported the business development team in developing proposals and cost estimates for buisness development activiteis in Anaergia’s Western USA Region. Anaergia – Project Development Manager Mr. Dale managed the project diligence for Anaergia’s Build Own Operate projects including project approvals (permitting and licenses), preliminary engineering, host city relationships, EPC contract development, electric and gas utility intergonnctions, and grant applications. Anaergia – Project Engineer Mr. Dale directly managed the engineering for Anaergia’s capital sale projects. HDR Engineering – Project Engineer Project Engineer: From 2006-2013 provided engineering services for asset condition assessment of existing equipment, providing recommendations for compliance with future discharge regulations, design of wastewater treatment systems including, MBR, UV disinfection, tertiary filtration, anaerobic reactor design, biosolids dewatering, biogas conditioning and handling system, cogeneration, and biogas upgrading systems for pipeline installation. Specialization: Project Engineering, Management and Execution Office Location: Carlsbad, California, USA Education: Bachelor of Science, Environmental Engineering Pennsylvania State University, 2006 Professional Associations: Registered Professional Civil Engineer Industry Tenure: Since 2006 Professional Affiliations: Page 194 of 297 Specialization: Anaerobic Digestion, Nutrient Recovery, Biological Nutrient Removal, Heat and Power Generation Office Location: Carlsbad, California, USA Education: Master of Science, Environmental Engineering University of New Orleans, USA Certificate, Mechanical Engineering Northern Alberta Institute of Technology, Canada Associate of Science Mechanical Engineering Technology Polytechnic University, Ecuador Professional Associations: American Water Works Association, Member Water Environment Federation, Member America Society of Civil Engineers, Member Industry Tenure: 25+ years Juan Josse Chief Engineer, Anaergia Inc. Mr. Josse has 25 years of process engineering and mechanical design experience in wastewater treatment, anaerobic digestion of various industrial, agricultural and municipal organic feedstocks. Mr. Josse has extensive experience on digestion of sewage sludge, food waste and organic fraction of municipal solid waste, biogas conditioning, processing, and utilization, digestate solids separation, nutrient recovery, solid waste processing for organics extraction, and high strength digestate filtrate treatment. His experience includes pre-treatment of various types of feedstocks to prepare the organic component as anaerobic digester substrates. Mr. Josse holds several US and international processes and equipment patents related to anaerobic digestion, thermal processing of residues and nutrient recovery. Mr. Josse has published in numerous wastewater and biogas engineering journals and presented in numerous US and international wastewater and renewable energy conferences. In 2010 Mr. Josse received the prestigious Grand Conceptor Award from the American Council of Engineering Companies (ACEC) for the Gills Onions Waste to Energy Project in Oxnard, California. Relevant Experience Anaergia – Chief Engineer Mr. Josse joined Anaergia, Inc. as Chief Engineer in August 2010. He is involved in all Anaergia resource recovery projects overseeing process design and providing senior review and value engineering. He is responsible company-wide for the adoption and integration of best engineering practices, development and acquisition of technologies, overseeing research and development, and supporting Anaergia offices with process and engineering review. HDR Engineering Irvine, CA – Senior Project Manager / Anaerobic Process Lead Previous professional experience includes a 9-year tenure as a Senior Project Manager and Professional Associate with HDR Engineering Inc. based in Southern California, focused on municipal and industrial wastewater treatment, anaerobic digestion, and biogas to energy. At HDR Mr. Josse lead several engineering projects for California wastewater agencies and private clients in the United States and abroad. These projects were associated with municipal and industrial wastewater treatment using conventional processes and membrane bioreactors; tertiary treatment and disinfection for recycled water production; nutrient removal and recovery; anaerobic digestion of sludge and high-strength industrial effluents; biogas handling and conditioning; and combined power and heat generation using biogas. Page 195 of 297 John Hutson Director of Plant Operations Mr. Hutson is the Director of Plan Operations at Anaergia and is based in Carlsbad, CA. He is an experienced Plant Manager with a demonstrated history of working in the oil & energy industry Relevant Experience Anaergia Director of Plant Operations at Anaergia for the North America Western Region responsible for the Anaergia operating facilities and their site operating teams in the NA West region. All site safety, environmental, financial, operations, and maintenance is managed as part of the site Operations department. NAES Corp. Plant Manager of a GE 100MW gas turbine power plant in southern California. Under John’s leadership the site won multiple national awards for best practices and certified by Cal - OSHA as a STAR-VPP facility. Additionally, the site was recognized by NAES as a President Award winner, an award issued to only 1 of NAES’s ~180 sites per year. Operations & Maintenance Manager for a large Siemens frame unit GTCC facilities, leading a collective bargaining crew in the safe and reliable operations of the 540MW facility. DAI Oildale, Inc. Operations and Maintenance Supervisor to manage all aspects of the Operations, Maintenance, Training, Safety, and Supply of a 30 MW combine cycle cogeneration power plant. Energy Developments Inc. Oversaw the operations and maintenance of Landfill Gas to Energy facilities in Ohio and Texas. Managed both gas conditioning and generating facilities as well as the gas collection systems. United States Navy Supervised operations and maintenance teams operating the nuclear power generation facility aboard an aircraft carrier, USS John C. Stennis, serving on 3 deployments overseas. Specialization: Plant Operations Office Location: Carlsbad, California Education: M.B.A – University of Connecticut School of Business B.S. Nuclear Engineering Technology – Thomas Edison State College US Nuclear Navy Industry Tenure: 20 Years Page 196 of 297 Specialization: Business & Project Development – Resource Recovery, Wastewater & Energy Office Location: Carlsbad, California, USA Education: B.A., Environmental Science & Engineering Secondary in Statistics Harvard University Certification: Certified Energy Manager Professional Associations: Association of Energy Engineers, Member Industry Tenure: Since 2016 Margaret Laub Project Development Manager Ms. Margaret Laub is Project Development Manager for Anaergia. Ms. Laub interfaces with clients, stakeholders, and internal teams to develop projects – driving them from concept to construction. Her five years of experience have largely focused on advancing energy projects with public partners to deliver infrastructure upgrades, enhanced resiliency, reduced carbon footprint, and economic benefits. Relevant Experience Anaergia – Project Development Manager Responsible for business and project development for resource recovery projects, with a focus on public-private partnerships (P3) with municipal wastewater treatment facilities in California and the west coast. Develops organics-to-energy facilities, leveraging existing infrastructure and coordinating third-party contracts for feedstock and energy offtake. Partners with public agencies to upgrade municipal infrastructure, provide organics recovery capacity, and generate renewable energy. Collaboratively develop flexible technical solutions and delivery models, tailored to unique operational, energy, an d regulatory needs. Booz Allen Hamilton – Associate Served as Energy Project Developer within the US Army’s Office of Energy Initiatives (OEI). Managed development of utility-scale Army energy projects to support operational resiliency and cost savings, delivering multiple developed projects to the execution team for implementation over an 18-month period. Directed multi-disciplinary teams and engaged external stakeholders to identify and develop opportunities, establish business case, and ensure alignment with evolving client priorities, employing both traditional and innovative teaming arrangements and funding mechanisms. Identified and led programmatic initiatives to build project pipeline, streamline development processes, improve performance metric reporting, and facilitate stakeholder communication. CEG Solutions – Project Manager Managed business and project development for Energy Savings Performance Contract (ESPC) projects, ranging in value up to $25M. Supported all areas of ESPC development for federal, state, and private projects including: energy assessment of over 100 facilities; qualitative and quantitative analysis of energy usage data and utility tariffs; identification of energy savings opportunities; development of Excel models to analyze energy upgrades and installation of renewable energy / distributed generation; financial modeling of project structures for recommended package of viable measures; composition of technical proposals to serve as basis for binding ESPC contracts; and transition to construction, including subcontract execution and performance evaluation. Managed engagement with client, utility and regulatory stakeholders, as well as internal engineering, finance, and operations teams. Led propsal development for new business opportunities, resulting in 10 new contract awards over a two-year period. Page 197 of 297 City of Pasco 41 RFP – PWRF Industrial Wastewater-to-RNG Project Appendix D: Anaergia Project References Page 198 of 297 1. Rialto Bioenergy Facility, CA, USA Total Processing Capacity 300,000 tons per year Plant Operational 2020 Structure Design, Built, Own, Operate, finance by Anaergia Outputs/Markets 1,000,000 MMBTU RNG pipeline injection, 4.6MW electricity, 10,000 TPY Fertilizer The Rialto Bioenergy Facility (RBF) is resource recovery facility that provides organics diversion and energy generation solution for the Southern California region mandated by California law SB 1383. RBF is designed to produce 13 MW electrical equivalent of renewable energy from up to 1,000 tons per day (TPD) of a combination of food waste extracted from municipal waste streams, liquid waste, and municipal biosolids. RBF is capable of converting up to 700 TPD of food waste into up to 1,000,000 MMBTU per year of carbon negative renewable natural gas (RNG). Food waste feedstock is extracted via Anaergia’s Organics Extrusion Press (OREX™) at an off-site materials recovery facility (MRF) and transported in end-dump trucks to RBF. Once onsite, the organic waste is pre-processed via Anaergia's Organics Polishing System (OPS™) to remove residual contaminants and create an organic slurry, which is fed directly to two 3.5MG food waste digesters. The biogas from the mono-digestion of food waste is conditioned to remove contaminants and upgraded to pipeline-quality RNG (99% methane) before being injected into the SoCal Gas grid. Dedicated on-site wastewater treatment infrastructure further treats the digestate prior to discharge from the facility. The facility also includes biosolids dryers and a pyrolysis system to convert up to 300 TPD of Class B dewatered biosolids from municipal wastewater treatment plants into fertilizer. The facility will be operating 24 hours a day, 7 days per week for biogas production and drying operations. The materials reception will be for 16 hours per day, 6 days per week. The project is designed, owned, operated, and financed by Anaergia and is the largest supplier of RNG in California. RBF provides dedicated capacity to process landfill diverted organic waste and biosolids to generate carbon-negative renewable energy and fertilizer. Page 199 of 297 Rialto Bioenergy Facility Aerial and Process Page 200 of 297 2. Victor Valley Waste Reclamation Authority (Biogas Power Systems – Mojave) - Victorville, CA, USA (Phase 1) Plant Operational 2015 Structure Design, Supply, and Finance by Anaergia Outputs 400 scfm biogas, 1.6 MW electricity Markets Biogas to CHP Anaergia won the opportunity to design, construct, finance, and own the Facility through a Request for Proposal issued by Victor Valley Wastewater Treatment Authority (VVWRA). The project equipment package was inclusive of membrane gas holder covers, hydraulic mixers with Service-Boxes and platforms, a recuperative thickening system, and high strength waste receiving station. The project showcases Anaergia’s innovative Omnivore® high solids wet anaerobic digestion technology with recuperative thickening and unique Hydraulic Mixers and Service Box, along with Anaergia’s low energy screw press solids separator technology used for dewatering of the digestate, on a municipal sludge feedstock. Anaergia has partnered with VVWRA to build this Demonstration Project and showcase our high solids anaerobic digestion process, facilitated by recuperative thickening of digested sludge. With funding from the Public Interest Energy Research (PIER) Fund of the California Energy Commission (CEC) and fund matching from Anaergia, existing infrastructure at VVWRA was retrofitted and re-commissioned to meet the needs of the demonstration. The focus of this project is to exhibit a cost-effective option for WWTP with existing anaerobic digestion infrastructure to increase their digester capacity and biogas production without investing in costly additional tank volume. The demonstration project showcases a cost effective and technically feasible method to shift wastewater treatment plants from grid dependent consumers to energy- neutral or energy-positive facilities. CHP Engines at VVWRA Page 201 of 297 This demonstration consisted of a full scale retrofit to VVWRA’s existing 300,000-gallon digester. The digester roof was upgraded from a floating cover to a double membrane gas holder. A recuperative thickening system, utilizing Anaergia´s screw sludge thickener, was installed as well as a high strength waste receiving skid. The digesters were equipped with hydraulic mixers and service-boxes including platforms. Anaergia’s high solids Omnivore® digestion process allows the retrofitted digester’s capacity to triple by means of recuperative thickening and high-solids mixing. By decoupling solids retention time (SRT) and hydraulic retention time (HRT), gas producing materials remain in the digester for longer periods and in greater quantities than in conventional digestion. External high strength organic wastes (FOG, Food Wastes, etc.) are also introduced for co-digestion with the existing stream of municipal sludge. The Facility uses all the biogas generated in the facility, including biogas generated in Anaergia’s high solids digestion system, to deliver thermal heat and electrical energy to the VVWRA using two containerized 800 kW combined heat and power modules. VVWRA engaged in this project in an effort to better utilize their biogas resources, offset high electricity costs, minimize energy price fluctuations, and achieve zero net energy wastewater treatment operations. Omnivore® at VVWRA Page 202 of 297 3. Victor Valley Waste Reclamation Authority - Victorville, CA, USA (Phase 2) Plant Operational 2021 Structure Design, Built, Own, Operate by Anaergia Outputs 1200 scfm biogas, 1.6 MW electricity Markets Biogas to CHP and pipeline injection The facility utilizes anaerobic digesters to treat and break down organic compounds present in the influent wastewater. These digesters produce waste biogas, the majority of which is methane. Currently, the VVWRA is in partnership with Biogas Power Systems - Mojave, LLC, a separate project entity (subsidiary of Anaergia) which owns and operates two 800 kW combined heat and power (CHP) units, capable of utilizing the biogas to produce approximately 70% of the electricity required to power the VVWRA plant equipment. However, the facility wants to pursue utilizing the biogas for producing renewable natural gas. Therefore, the Proposed Project will be capable of using all of the biogas from the digesters to make biomethane for injection into the natural gas grid owned by Southwest Gas, producing a renewable substitute for fossil-derived natural gas. At full capacity, the WWTP can produce 1200 standard cubic feet per minute (scfm) of biogas through anaerobic digestion of a combination of municipal sludge generated at the WWTP and liquid organic waste streams including liquid food wastes and fats, oils, and grease. The Proposed Project will upgrade the biogas produced from anaerobic digestion through a multistage treatment process ultimately producing 765 scfm of biomethane for injection into the local natural gas grid. The separation and purification equipment and processes used to produce the biomethane are not a source of regulated air pollutant emissions, and therefore do not require permitting. Rather, they receive biogas from the existing permitted digesters, which are the source, and separate the biogas into a biomethane product stream, which meets the quality specifications of natural gas, and a regeneration waste gas stream of undesired byproducts that were present in the original biogas. Up to 600 scfm of waste gas will be generated as a result of this biomethane production. The waste gas will be sent to a thermal oxidizer (TO) for VOC and odor control to achieve approximately 99% VOC removal before being vented to the atmosphere. The waste gas odor and VOC control system is an emission control device that requires an air permit from MDAQMD. VVWRA Facility Page 203 of 297 4. Rhode Island Bioenergy Facility, RI, USA Plant Operational 2023 Structure Design, Build, Own, Operate, Finance by Anaergia Inputs >120,000 TPY of SSO and MSW, 3.2 MWe CHP Outputs / Market Biogas to CHP (3.2 MWe) and RNG (>300,000 MMBtu) Anaergia acquired the Rhode Island Bioenergy Facility (RIBF) in 2021 as an existing distressed asset with plans to revitalize the facility using Anaergia equipment and systems. At the time of acquisition, RIBF, located in Johnston, Rhode Island, was operating as the only large-scale organic waste digester in Rhode Island; adjacent to a central landfill. Anaergia designed the facility upgrades at RIBF targeting significant improvements with the infrastructure and ability to monetize the biogas produced on-site through renewable natural gas (RNG) sales. RIBF will have the capacity to receive over 120,000 tons per year of feedstock including source separated organics (SSO, or food scraps) and the organic fraction of municipal solid waste (OFMSW). Through the expansion of the existing digester capacity and the installation of a gas interconnection, RIBF will produce over 300,000 MMBtu of RNG to sell on the market. In addition, the existing CHP engines will service house electrical and thermal loads. RIBF will be fully operational with all Anaergia upgrades in 2023. Existing Rhode Island Bioenergy Facility Page 204 of 297 City of Pasco 43 RFP – PWRF Industrial Wastewater-to-RNG Project Appendix F: Technology Brochures Page 205 of 297 Omnivore® High Solids Anaerobic Digestion • 3x Existing Digestion Capacity in the Same Footprint • Limited Footprint for New Digesters • Reduced Capex and Lifecycle Costs • Easy Operation and Maintenance • Enables Co-digestion of Multiple Feedstocks • High Operational Control and Flexibility • Enhanced Biogas Production via Increased Capacity KEY BENEFITS Triple Your Digestion Capacity Page 206 of 297 APPLICATIONS • Enhance digestion capacity in existing municipal wastewater treatment facilities • Anaerobic digestion with reduced footprint for new plants • Co-Digestion of additional feedstocks such as FOG, food waste, SSO, organic fraction of municipal solid waste, high strength industrial waste • Anaerobic digestion of industrial wastewater • Production of Class A Biosolids • Retrofit compatibility with different AD tank and roof configurations info@anaergia.com • www.anaergia.com Omnivore® is a high solids approach to digestion which incorporates Anaergia’s advanced mixing and robust thickening systems to turn a low-solids digester (2 to 3%) into a high-solids digester (5 to 8%). Co-Digestion Made Easy: Omnivore® enables co- digestion of local organic waste streams, generating additional revenue and making plants energy positive. Improved Performance: Omnivore® offers operational control and flexibility. Easy maintenance includes the ability to adjust mixer position to break up floating layers and re-suspend grit, and access without taking the digesters out of service. ANAERGIA SOLUTION Reduced Footprint, Lower Lifecycle Cost. Omnivore® Conventional Omnivore® Capex Opex Heat Demand Power Demand Dewaterability Operational Complexity Capacity Flexibility Feedstock Flexibility Omnivore® vs Conventional Digestion Anaergia’s Omnivore® Retrofit in Victor Valley, California Page 207 of 297 KEY BENEFITS PSM Smart Mixing System Powerful, gearless direct drive motor combined with a dynamic mixer controller delivers an innovative mixing system that achieves the highest mixing performance in the market • EFFICIENT — Low energy, 6 kW draw. Connected load of 12.5 kW • POWERFUL — Highest thrust mixer on the market, delivering 30,000 GPM of flow — More flow in 1 minute than most pump mixers deliver in 1 hour • VERSATILE — Doesn’t let increased solids and changing feedstocks impact mixing — Effectively mixes material from ~1% TS to ~15% TS • ROBUST — Backwards sweeping sickle-shaped propeller prevents rags or fibers from snagging on the propeller • DYNAMIC — Easy adjustment of mixer height, direction, and speed to break up floating layers and resuspend grit • RELIABLE — Gas curtain-fitted service boxes enable servicing without taking digester offline and multiple mixer configuration reduces single points of failure • HIGH-PERFORMING — Enhanced mixing performance increases volatile solids reduction, benefitting biogas production and biosolids management Page 208 of 297 info@anaergia.com • www.anaergia.com Anaergia’s PSM Smart Mixing System is a breakthrough high-solids mixing solution which consists of advanced Permanent Synchronous Motor (PSM) mixers and a patented service box. This proven technology is deployed globally, including hundreds of installations in Europe and North America. Unparalleled Operational Flexibility: Anaergia’s intelligent mixing system offers full control by allowing operators to handle a range of operating scenarios by moving the mixer placement, changing direction and speed of rotation. Mixers can be easily accessed for maintenance and inspection without shutting down digesters. Unique and Robust Design: Real-time, automatic mixer speed control avoids cavitation and abrasion. Designed to prevent ragging and available in stainless-steel options for corrosive environment applications. ANAERGIA SOLUTION High Solids Mixers: PSM mixers are efficient and reliable. They are used in feedstock buffer tanks and digesters handling up to 15% solids. With a propeller design that reduces ragging, a direct-drive motor that provides high efficiency, and intelligent controls that maintain constant torque. The PSM mixers minimize energy consumption, wear & tear, and operating costs. Service Boxes: Allow easy adjustment of mixer height and direction to break up floating layers and resuspend grit while offering quick access for inspection and maintenance while the digester remains in service. Flexible Deployment including fixed roofs (steel or concrete) membrane covers, geodesic domes, no roof, retrofits, and new build. With the SMART dynamic mixer control system and a gearless motor, Anaergia’s electric drive mixers can reliably and efficiently mix both high and low viscosity fluids, using similar high efficiency motors to those found in high performance electric cars. The PSM mixer is effective and maintains its energy efficiency advantage in the most demanding applications: • Sludge or food waste storage tanks • Digesters and digestate storage tanks • Anoxic tanks • Other wastewater applications Engineered for Highest Performance, Flexibility, and Operational Reliability Eliminate Dead Zones Redefining Mixer Performance by Achieving >0.3ft/s (0.1 m/s) in Over 90% of Tank Volume 0.80 0.80 0.64 0.64 0.48 0.48 0.32 0.32 0.16 0.16 0.0 0.0 Velocity (m/s)Velocity (m/s) Suspend and remove grit Break up floating layers Access for operation and maintenance 3 mixers operating on 2% TS food waste digestate in a 0.77Mgal tank in California Page 209 of 297 Biogas Upgrading (BUG™) System Upgrade WWTP Biogas to Valuable Biomethane • HIGH PERFORMANCE: >99.5% methane recovery and >98% methane purity • FLEXIBLE: Meet local regulations, pipeline standards, and site-specific needs with tailored design • PROFITABLE: Divert flared gas to the pipeline to create new revenue streams • EFFICIENT: Conserve energy with highly selective membranes and multiple compressor configurations • COMPATIBLE: Quick and easy installation interfaces with variety of systems • OPERATOR-FRIENDLY: Streamlined maintenance and inspection KEY BENEFITS Page 210 of 297 info@anaergia.com • www.anaergia.com APPLICATIONS • Biogas conditioning and upgrading allows for efficient and effective removal of contaminants and carbon dioxide to produce renewable natural gas that meets even the most stringent pipeline requirements. • Customizable conditioning process based on digester feeds and present compounds to produce a gas that meets unique pipeline specifications. • Anaergia’s in-house modelling determines the optimal membrane configuration for site-specific biogas flow rates, with additional custom solutions available for projects with unique ramp-up schedules. Anaergia’s Biogas Upgrading System (BUG™) meets the most stringent pipeline gas quality standards for RNG using the best available membrane technology while focusing on operability and minimized energy consumption. • Conditioning: Biogas is first conditioned to remove unacceptable contaminants such as H2S, NH3, siloxanes, moisture and VOCs to meet pipeline specifications. Removal of these compounds avoids negatively impacting downstream equipment and allows for minimal tailgas treatment. • Upgrading: CO2 is removed from conditioned biogas to produce RNG that meets pipeline specifications along with a methane-lean tail gas. The system contains a compressor skid, a high-pressure conditioning skid, and a membrane skid which can be sized to fit specific needs. ANAERGIA SOLUTION Anaergia’s Biogas Upgrading (BUG™) System at a California WWTP Anaerobic Digestion Omnivore® Food Waste (Optional) Sludge Biogas Upgrading (BUG™) System Pipeline RNG Anaergia’s Simplified Scope for Biogas Utilization Projects Page 211 of 297 OREX ™ Organics Extrusion Press KEY BENEFITS • Maximizes Recovery of Wet Organics from Municipal Solid Waste • Lowest Cost Organics Diversion from Landfill: No Source Separation Required • Feedstock Versatility: Handles a Variety of Waste Streams • Recovered Organics Can Be Converted to Renewable Energy and Fertilizer Using Anaerobic Digestion • Effective Extraction Leads to Smooth Operation and Low Maintenance Costs for the Digesters • Easy Integration into Existing Facilities • Increases Calorific Value of Reject Fraction Putrescible Organics Extraction from MSW AROUND Page 212 of 297 Putrescible Organics OREX™ Achieves: Organics Extraction | Landfill Diversion | Resource Recovery Quality Products from Waste • Biogas • Renewable Energy • Compost • Recyclables • High Quality RDF Incoming SSO OREX™ ANAERGIA SOLUTION Anaergia’s Organics Extrusion Press (OREX™) reliably and efficiently separates solid waste streams into wet organic and dry fractions, driving significant value through both resource recovery and diversion. While diverting waste from landfills, the OREX™ recovers over 90% of putrescible organics from mixed waste streams. Organics Extraction & Recovery: OREX™ generates a clean and highly digestible organic fraction ideal for conversion to biogas and fertilizer. Residuals Diversion: Anaergia facilities maximize recovery of plastics, paper, and metal while transforming the non-degradable and non-recyclable rejects coming out of OREX™ into a dense Refuse Derived Fuel (RDF) with increased calorific value and lower moisture content. APPLICATIONS • Mechanical Biological Treatment for Mixed Municipal Solid Waste (MSW) – Extract Organics and recover recyclables while producing clean energy, fertilizers, and Refuse Derived Fuel (RDF). • Pretreatment (Removal of contamination) from different Organic Feedstocks in preparation for Anaerobic Digestion (AD) • Flexible to effectively process a large variety of waste streams like: Highly contaminated MSW, food waste, Kitchen & Catering waste, SSO, FOGO (Food & Garden Waste), Wet Commercial Waste, etc. • Modular and compact design enables integration into existing or new waste management facilities or transfer stations. RejectsIncoming MSW info@anaergia.com • www.anaergia.com OREX™ installation in California, USA Page 213 of 297 Organics Polishing System (OPS) Remove Grit and Fine Plastics – Maximize Digester Performance and Efficiency • ROBUST: Carefully designed equipment to handle the toughest waste, and minimize operational downtime • EFFICIENT: Targets and removes plastics 2mm or larger in size and grit as fine as 500μm from organic slurry produced from various feedstocks • INTELLIGENT: Fully automated system, with instrumentation for complete process control, data collection and remote support • FLEXIBLE: Can treat a variety of organic feedstocks including liquid waste and organics from MSW, SSO, agricultural, and commercial waste KEY BENEFITS Page 214 of 297 APPLICATIONS • Anaergia‘s OPS allows smooth plant operation by ensuring that the buffer tanks and digesters downstream of the OPS are free of floating layers and settled grit. The OPS maximizes digester and pump operation uptime and retains digester tank capacity. • For complex applications with stringent digestate cake quality requirements, the components utilized in the OPS can be customized to meet your unique process needs. The OPS effectively removes fine plastics and grit from multiple organic feedstocks that are preprocessed by different types of upstream equipment and contain different levels of contamination. • For standalone degritting applications, the Anaergia GritREX system is available. This standardized unit achieves similar grit removal as our OPS system, but is delivered alone on a skid to minimize on-site construction and cost. info@anaergia.com • www.anaergia.com Anaergia’s OPS is a proven system with extraordinary performance. Also available as a skidded solution for standalone de-gritting applications, delivered ready for immediate installation. The advanced OPS systems include: • Organic Cake Blending & Mixing Unit • Anaergia CleanREX for Plastic Removal • Hydrocyclone for (GritREX) Grit Removal • Vibrating Screen, Grit Classifier, or Grit Washer and Compactor ANAERGIA SOLUTION OPS at Rialto Bioenergy Facility in Rialto, CA (USA) Fine Plastics Removed Grit Removed Extracted Organics Receiving Hopper Hydrocyclone (GritREX) Grit Vibratory Screen CleanREX Reject Material Discharge Polished Organic Slurry Characteristics Page 215 of 297 City of Pasco 44 RFP – PWRF Industrial Wastewater-to-RNG Project Appendix G: Project BFD Page 216 of 297 Comments:1 ...2 ...3 …ANAERGIA BFD LEGENDCONFIDENTIALAnaergia      ClientClient        AnaergiaANAERGIA SCOPEdetailOptionalFUNCTIONVol: XXm³HDPE/SSFUNCTIONMesophilicOperating Vol: XXm³HRT: XXd / SRT: XXdOLR: XX kg VS/m³.dØ: XXmWall Height: XXmFB: XXmMixers: # TypeMaterial of constructionRoof type:Insulation: Prefabricated tank (HDPE or Stainless steel)Tank by AnaergiaUnit OperationTEXT TEXT TEXT TEXTgasEnergyProcess ChemicalsProcess materialProcess material(solid/liquid)From other sheetGas (biogas, biomethane, exhaust gas)Process chemicalEnergy(ele, hot water, steam)NOT IN ANAERGIA SCOPEdetailEXISTINGdetailFUNCTIONMesophilicOperating Vol: XXm³HRT: XXd / SRT: XXdOLR: XX kg VS/m³.dØ: XXmWall Height: XXmFB: XXmMixers: # TypeMaterial of constructionRoof type:Insulation: Tank by othersText in blue is the equipment provided by AnaergiaFLOCCULENT MIX TANKPOLYMER DISPERSION UNITBUCKET CONVEYORCENTRIFUGAL PUMPPROGRESSIVE CAVITY PUMPLOBE PUMPPISTON PUMPHEAT EXCHANGERIN‐LINE GRINDERDIAFRAGM PUMPBLOWERHOPPER FED PC PUMPDetails: operating hours, size, model, number of units (as applicable)From other sheetFrom other sheetFrom other sheetBELTREVERSIBLE BELTSCREW CONVEYORSCREW CONVEYOR WITH HOPPERFUNCTIONMesophilicOperating Vol: XXm³HRT: XXd / SRT: XXdOLR: XX kg VS/m³.dØ: XXmWall Height: XXmFB: XXmMixers: # TypeMaterial of constructionRoof type:Insulation: Existing tankSite constructed tank (bolted steel or concrete)Potable water/Service waterpotable waterFrom other sheetairAir(aeration, drying air, foul air)From other sheetTANKER TRUCKFRONT END LOADERTIPPER TRUCKBOBCATFORK LIFTGRAPPLE CRANEOPTIONAL SCOPEdetailProcess materialCakeFrom other sheetProject: STERLING NATURAL RESOURCE CENTERCountry:UNITED STATESCustomer:EAST VALLEY MWDProject‐No: C3010_0040_SNRCBDrawing Name: BLOCK FLOW DIAGRAM (BFD)The entire content of this drawing and any related documents are and shall remain the intellectual property of Anaergia, Inc., and shall not be used except as authorized, unless written consent has been granted by the said company. Users may not copy, re‐transmit or download, for any commercial or noncommercial purpose, this drawing or any part thereof.Rev.DateCreat.Check.Appr.Issued For ConstructionComments0010/16/2019LASMJJPage 217 of 297 Comments:1. Process is 7 d/wk and 24 hr/d unless specified otherwise2. TPD: Short tonnes/day, TS: Total Solids, VS: Volatile Solids, GPD: Gallons/day, MGD: Million Gallons/day3. MM: Maximum Monthly; AVG: Average.Pasco BFDMax Month + Food WasteBlock Flow Diagram (BFD)Pg 1 of 2CONFIDENTIALProject: PascoCountry:UNITED STATESCustomer:Project‐No: Drawing Name: BLOCK FLOW DIAGRAM (BFD)The entire content of this drawing and any related documents are and shall remain the intellectual property of Anaergia, Inc., and shall not be used except as authorized, unless written consent has been granted by the said company. Users may not copy, re‐transmit or download, for any commercial or noncommercial purpose, this drawing or any part thereof.Rev.DateCreat.Check.Appr.Comments0004/11/2022SFLAPOLISHED SLURRY*132 TPD12% TS85% VSROTARY DRUM FINE SCREENSDAF UNITS(2 Units)DAF EFFLUENT11.5 MGDCOD: 6812 mg/LBOD: 1732 mg/LTS: 2915 mg/LTSS: 404 mg/LTKN: 105 mg/LANAEROBIC DIGESTERMesophilicOperating Vol: 2.3 Mgal/digesterHRT: 25 dOLR: 0.28 lb VS/ft³.dØ: 92 ft, H: 51.5 ft, FB: 5 ftInsulated, Bolted SteelPitched Hard Cover6 PSM Mixers w/ Service Box HP(3+0)FLOAT, SCREENING & WAS THICKENINGSST 400(3+1)(20 hr/d)FILTRATE0.7 MGD12.2 MGDCOD: 5600 mg/LBOD: 2834 mg/LTS: 4886 mg/LTSS: 1914 mg/LTKN: 99 mg/LDIGESTATE DEWATERINGSSD 400(In elevated platform)18 hr/d(3+1)DIGESTATE1189 TPD6.6% TSFILTRATE0.3 MGDCAKE263 TPD24% TSPOLYMER8 kg/MT‐TSS1060 lb/dPrimary Dil: 12,700 GPDSecondary Dil: 71,900 GPDPolymer5 kg/MT‐TSS1437 lb/dPrimary Dil: 17,200 GPDSecondary Dil: 97,650 GPD*Polished slurry produced from 100 TPD; Source Separated Organics (SSO) estimated with 30% solids content and 30% contamination; 80 TPD SSO are currently collected Hot water supplyHot water return0.5 MWth per digesterSCREENINGS, DAF FLOAT & PRE‐THICKENED WAS STORAGE TANK330,000 Gal3 Submersible MixersInsulated, Bolted Steel(2+1)SCREENINGS & DAF FLOAT0.65 MGDTS : 4%VS: 85%RECEPTION SKID(INCLUDES ROCK TRAP, COURSE SCREEN, GRINDER, AND PUMP)BUFFER TANK50,000 Gal1 Top Entry MixerInsulated, FRP(3+1)SHEET 2FLOW AGAS HOLDER74,000 ft325 mbarBIOGAS1873 SCFM60% CH425 mbar(3+1)(2+1)(3+1)TWAS, FLOAT AND SCREENING1139 TPD12% TSBELOW GRADE PUMPING TANK22,000 Gal1 Top Entry MixerFILTRATE0.7 MGD(1+1)WASTEWATER RECEIVING BASINSCREENED WASTEWATER STORAGE & PUMPING TANKFLOW BSHEET 2FLOW CSHEET 2PRE‐THICKENED WAS894 TPD4% TSFLOW DSHEET 2FILTRATE0.3 MGDSBR FEED EQUALIZATION TANKOp.Vol: TBD(4+1)(3+1)Page 218 of 297 Comments:1. Process is 7 d/wk and 24 hr/d unless specified otherwise2. TPD: Short tonnes/day, TS: Total Solids, VS: Volatile Solids, GPD: Gallons/day, MGD: Million Gallons/day3. MM: Maximum Monthly; AVG: Average.Pasco BFDMax Month + Food WasteBlock Flow Diagram (BFD)Pg 2 of 2CONFIDENTIALProject: PascoCountry:UNITED STATESCustomer:Project‐No: Drawing Name: BLOCK FLOW DIAGRAM (BFD)The entire content of this drawing and any related documents are and shall remain the intellectual property of Anaergia, Inc., and shall not be used except as authorized, unless written consent has been granted by the said company. Users may not copy, re‐transmit or download, for any commercial or noncommercial purpose, this drawing or any part thereof.Rev.DateCreat.Check.Appr.Comments0004/11/2022SFLASHEET 1FLOW ABIOGAS1873 SCFM60% CH4CAUSTIC H2S SCRUBBERSw/ NaOH Biological Regeneration FLAREAMMONIA REMOVAL SCRUBBER UNITREFRIGERATED DRYERBIOMETHANE1112 scfm CH41873 scfmBIOGAS BOOSTER BLOWER250 mbarTAIL GAS TO ATMOSPHERE761 scfmACTIVATED CARBON ADSORPTION VESSELS – BACKUP H2S REMOVALCHILLERBIOGAS UPGRADING MEMBRANE SYSTEM – CO2 REMOVALBIOGAS UPGRADING MEMBRANE FEED COMPRESSOR w/ OIL COOLING HEAT RECOVERYACTIVATED CARBON ADSORPTION VESSELS – VOC REMOVALPRODUCT GAS COMPRESSORPIPELINE RNG ACCEPTANCE UNITNaOH 50% SolutionSCRUBBER BLOWDOWN TO SBR FEED EQUALIZATION TANKSulfuric AcidHIGH PRESSURE REFRIGERATED DRYER WITH CHILLERHot water from digesterHot water to digesterAIR COOLED AFTER COOLERDRY COOLER INDIRECTSBR N/dN WWTPOp. Vol: 8.4 Mgal/tankL: 325 ft, W: 150 ft; H: 25 ftConcrete; 4 Mixers/tank(4+0)EFFLUENT TO DISCHARGE12.3 MGDBOD: 30 ppmTN: 28 ppmTKN: 20 ppmWAS STORAGE  TANK250,000 Gal2 Submersible MixersInsulated, Bolted Steel0.5 MGD1.8% TSEFFLUENT EQUALIZATION TANKOp.Vol: 613,800 GalL: 200 ft; W:26 ft; H:25 ftConcrete(1+0)FLOW CSHEET 1(4+1)0.5 MGD1.8% TSFLOW BSHEET 1SBR FEED12.8 MGDROTARY DRUM THICKENERS(4+1)(18 hr/d)Polymer4 kg/MT‐TSS300 lb/dPrimary Dil: 3,600 GPDSecondary Dil: 20,400 GPDPRE‐THICKENED WAS894 TPD4% TSFLOW DSHEET 1FILTRATE0.3 MGD(4+1)Aeration Air13,665 scfm/blower(4+1)(4+1)Caustic Page 219 of 297 PASCO PROCESS WATER REUSE FACILITY (PWRF) INDUSTRIAL WASTEWATER-TO-RNG PROJECT RESPONSE TO REQUEST FOR PROPOSAL NO: 22-750 April 22, 2022 Responding Entity: Burnham RNG, LLC Page 220 of 297 2 EXHIBIT A: PROPOSER SIGNATURE AND SUBMITTAL PAGE Page 221 of 297 RFP 22-750, Exhibit A Signature and Submittal Page Page 1 of 1 RFP No: 22-750 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project Exhibit A Proposer Signature and Submittal Page We acknowledge that all Addenda through issued for this RFP have been examined as part of the proposal documents. Company: Address City State/Zip Authorized Representative Signature: Print Name Title Email: Phone: Fax: Burnham RNG LLC 1201 Wilson Blvd 27th Floor Arlington Virginia 22209 Christopher Tynan CEO (312) 399-6123Chris@BurnhamDev.com None None Page 222 of 297 3 EXHIBIT B: CONFLICT OF INTEREST FORM Page 223 of 297 RFP 22-750, Exhibit B Conflict of Interest Form Page 1 of 1 Exhibit B City of Pasco – Conflict of Interest Form Project Title: Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project RFP #: 22-750 The developer being contracted must check one of the boxes on the worksheet below. (company name) has no known or actual, potential, or reasonably perceived, financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project. or (company name) has a potential or reasonably perceived financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project, as described here: Our firm proposes to mitigate the potential or perceived conflict according to the following plan: or (company name) has an actual financial or other interest with any staff member, including City Council, at the City of Pasco regarding the outcome of the project, as described here: X Burnham RNG, LLC and Sustainable Energy Ventures, LLC Page 224 of 297 5 Burnham RNG, LLC 1201 Wilson Blvd, 27th Floor Arlington, VA 22209 (312) 399-6123 Info@BurnhamDev.com Steve M. Worley, PE Public Works Director 525 N. 3rd Avenue PO Box 293 Pasco, WA 99301 worleys@pasco-wa.gov RE: Letter of Transmittal for Proposal for Pasco PWRF Industrial Wastewater-to-RNG Project RFP No: 22-750 Dear Steve, Burnham RNG, LLC is pleased to submit this proposal in response to the City of Pasco’s Request for Proposal Number 22-750: Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project. Burnham and its partner company, Sustainable Energy Ventures, have put considerable effort into delivering the city a highly detailed proposal that is responsive to the specific nature of this project. In addition, Burnham has sought participation in the proposal by industry-leading entities that, along with Burnham, cover the full range of development, technical, and financial capabilities needed to successfully deliver the project outlined in the RFP. Burnham and SEV appreciate the opportunity to provide this proposal to you, and we stand ready to address any questions you have. Sincerely, Chris Tynan CEO Page 225 of 297 6 2. EXECUTIVE OVERVIEW 2.1 PROPOSAL INTRODUCTION This proposal (the “Proposal”) is submitted by Burnham RNG, LLC (“Burnham” and “Developer”) on behalf of its wholly owned subsidiary, Burnham SEV Pasco, LLC ( “ProjectCo”) and with its partner company, Sustainable Energy Ventures, LLC (“SEV’ and, together with Burnham, “Development Team”). The proposal describes a wastewater-to-RNG facility (“Facility” or “Project”) that meets the requirements of RFP Number 22-750 issued by the City of Pasco (“City”) on March 17, 2022. In particular, the Project outlined in this proposal is designed to: 1. Accept wastewater from the City at the rotary drums screen building at the PWRF which meets the Influent Design Criteria specified in Exhibit D of the RFP; 2. Treat that wastewater in anaerobic digestion (“AD”) and sequential batch reactor (“SBR”) Systems such that it meets the effluent criteria in Section 1.1 of the RFP; 3. Return that wastewater to the City at the PWRF for winter storage in City-operated storage ponds or for land application via City-operated irrigation systems; 4. Produce RNG from the biogas generated by the AD system; and 5. Market the RNG to maximize its value to the Facility, the City and the Processors. The Development Team has also sought out numerous opportunities to enhance the value of this Project. An engineering, design, procurement, and construction structure has been pursed that has resulted in cost reductions below prior expectations. Bond financing legal and banking experts have been consulted to develop low cost financing options. An RNG marketing strategy has been proposed that maximizes its value to the Project. And avenues have been identified to enhance the already strong environmental story the Project will tell, including the potential to accept food waste from Basin Disposal, enabling them to fuel several of their CNG trucks on RNG, and the possibility of setting up a grant-funded pilot to convert the AD sludge to biochar. These elements, along with the Facility’s core wastewater treatment benefits and RNG production, would enable this project to be a leading example of Industrial Symbiosis for other cities and industrial food processors to emulate. The approach to the design and development of the Project, along with an anticipated cost and development schedule, are described in the following sections of this Executive Overview. 2.2 TECHNICAL APPROACH AND METHODOLOGY 2.2.1 Organization Burnham and SEV are the Development Team for the proposed project. The two companies are partnered to develop projects focused on eliminating emissions from waste, with SEV providing project origination and early-stage development services and Burnham acting as the Page 226 of 297 7 long-term owner and operator of the facilities. For this project, as with all SEV projects, the project will ultimately be financed, constructed, owned, and operated by Burnham. To provide the City with as detailed and accurate of a proposal as possible, the Development Team worked with several other entities to develop this response, each of which is an industry leader in a key area of execution that this project requires. Specifically: • Evoqua, via its company ADI Systems, has provided the design, equipment supply, and costing for the wastewater treatment plant. Evoqua has engineered and supplied equipment to hundreds of wastewater treatment facilities, many of which treat water from the same processes as the Processors in this project. • Greenlane has provided the design, equipment supply, and costing for the biogas upgrading system needed to produce RNG. Greenlane is a leading provider of gas upgrading units to RNG projects around the world, and specifically to numerous wastewater treatment facilities that are upgrading biogas for pipeline injection. • IMCO Construction has supplied an engineering and construction estimate for the project. IMCO is a highly respected general contracting and construction firm in the Pacific Northwest with deep experience building wastewater treatment assets in the region. • Williams Northwest Pipeline confirmed pipeline capacity for the RNG, identified the needed interconnection point and pipeline pathway, and provided interconnection cost estimates. Williams is the primary interstate pipeline company in the region and has worked with the Development Team on other projects. The result of this approach is the delivery of a comprehensive proposal informed by substantial subject-matter expertise. 2.2.2 Basis of Design The proposal uses the influent and effluent criteria provided in the RFP as the Facility Basis of Design. This proposal refers to that design as Option 1. However, a second design has also been offered. Because not all of the Processors in the provided Basis of Design are currently connected to the PWRF System, it was deemed possible that those unconnected Processors may not ultimately use the new Facility. Accordingly, a design was also produced that does not include Processor 8 from Exhibit D. This design is referred to as Option 2. Each Basis of Design is described in detailed in Section 5.1. 2.2.3 Process and Facility Overview The proposed facility includes the following broad process steps and systems: • Rotary drum screens and a grit vortex system for solids and grit removal. Page 227 of 297 8 • A raw wastewater lift station and EQ tank. • Two AD-BVF Reactor AD systems for BOD and COD reduction and biogas production. • SBR systems for nitrogen reduction. • A gas conditioning system, consisting of: o Biogas blowers o A caustic wash bulk H2S reduction system o Iron oxide H2S polishing o A compression and dehydration system o A Pressure Swing Absorption (“PSA”) for biogas upgrading (removal of CO2, N2, O2, and water vapor) o Two enclosed, to be used during upset conditions. • Compression to pipeline pressure • A lateral pipeline to connect to the primary interstate pipeline. • An interstate pipeline interconnection and metering station. The primary wastewater treatment system was designed to the following flowrates and equipment sizes for the two design options: • Option 1: A 2 MG EQ tank, two 44 MG Type L ADI-BVF® reactors followed by four 2.5 MG SBR reactors designed to treat an average wastewater flow of 7.31 mgd and peak flow of 12.16 mgd. • Option 2: A 1.6 MG EQ tank, two 33 MG Type L ADI-BVF® reactors, followed by two 2 MG SBR reactors designed to treat an average wastewater flow of 4.89 mgd and peak flow of 9.21 mgd. 2.3 COMMERCIAL APPROACH AND OUTCOMES 2.3.1 Structure and Responsibilities The anticipated Project structure is described in detail in Section 5.8 and the indicative Term Sheet in Exhibit B. Burnham has proposed its ProjectCo design, construct, finance, own and operate the Facility. The ProjectCo will have a contract with the City to treat the wastewater delivered to the Facility by the City and will return the treated effluent wastewater at the required contractual specifications. The City will be responsible for delivery of the wastewater to an agreed-upon delivery point and for storage and land application once it has been treated. The City will be charged a rate for the treatment of the wastewater, with certain operating costs being passed through to the City. The City will pass its costs through to the Processors based on an agreed-upon rate structure that Burnham will work with the City to develop. Page 228 of 297 9 Burnham proposes to build and operate the gas conditioning and RNG delivery system at its cost, removing that from the Processor rate base, and estimates that under this structure it will be able to return approximately 80% of the net value of the RNG back to the Processors. 2.3.2 Anticipated RNG Production and Value Based on the Design Criteria, it’s anticipated that the Facility will produce 538,676,125 ft3/year under Option 1 and 458,888,950 ft3/year under Option 2. These figures have not been used for financial modeling and pro forma purposes, and they will not be used to underwrite the facility, unless the City is able to guarantee the influent Design Criteria (specifically, BOD), as they currently rely on future, estimated, but unobserved wastewater characteristics. The Developer expects to sell the RNG into the Voluntary Market, the rationale for which is described in detail in Section 5.5.2. The Proposal currently assumes a conservative estimate of $15/MMBtu in all project, financial, and rate models, but the Developer anticipates being able to secure higher value, as they are currently engaged with buyers who have recently contracted for RNG in the Voluntary Market for around $17.50/MMBtu. 2.3.3 Anticipated Project Costs Capital costs for the wastewater treatment plant have been estimated to be $73,000,000 for Option 1 and $65,000,000 for Option 2. Total capital costs for the project including exclusions from the wastewater treatment system scope and 10% contingency added are estimated to be $85,800,000 for Option 1 and $77,000,000 Option 2. RNG upgrading and transportation is being paid by Burnham and thus is excluded in the above figures. Costs are discussed in more detail in Section 5.9. 2.3.4 Schedule A project schedule that meets City and Processor development needs has been provided in Section 6.1, along with a discussion of start-up delay mitigation strategies in Section 6.2. Page 229 of 297 10 3. IDENTIFICATION OF DEVELOPER 3.1 RESPONDING ENTITY Burnham SEV Pasco, LLC, a Washington state corporation. Burnham SEV Pasco, LLC is a wholly owned subsidiary of Burnham RNG, LLC. Burnham RNG is responding to this RFP on behalf of Burnham SEV Pasco, LLC. Please address all correspondence to: Burnham RNG, LLC 1201 Wilson Blvd, 27th Floor Arlington, VA 22209 (312) 399-6123 Info@BurnhamDev.com 3.2 INDIVIDUAL RESPONDENTS Walker Dimmig Principal Sustainable Energy Ventures, LLC 841 Oneida Street Denver, CO 80220 (919) 819-4213 Walker@SEV.Energy Chris Tynan CEO Burnham RNG, LLC 1201 Wilson Blvd, 27th Floor Arlington, VA 22209 (312) 399-6123 Chris@burnhamdev.com Page 230 of 297 11 4. PROJECT TEAM QUALIFICATIONS 4.1 BACKGROUND The Responding Entity for this RFP is the project’s developer and proposed owner, Burnham RNG, along with its sister company, Sustainable Energy Ventures. The two companies are partnered to develop projects focused on eliminating emissions from waste, with SEV providing project origination and early-stage development services and Burnham acting as the long-term owner and operator of the facilities. For this project, as with all SEV projects, the project will ultimately be financed, constructed, owned, and operated by Burnham. Key personnel backgrounds and an organizational structure for the Development Team have been provided. This proposal also includes the input of a full project team capable of providing a comprehensive solution to the City of Pasco and the Processors. If selected by the City, Burnham will work with the City to ensure it is providing the most-cost effective project- teaming, contracting, and vendor approach to the City and the Processors. The RFP participants provide demonstrated experience across the entire range of project requirements, from project development, design, and financing, to engineering, equipment supply, and construction, and finally all the way through start-up and long-term operations. The background and qualifications of each participant is described below. 4.1.1 Responding Entity / Developer Burnham RNG and Sustainable Energy Ventures are the developers of the proposed project. Both Burnham and SEV are recently formed entities that bring together experienced energy and waste executives to provide an improved model for the development, ownership, and operations of facilities. The combined team has developed, financed, and operated over $1 billion in projects across the energy, bioenergy, waste and RNG space and has completed over $1 billion in RNG transactions. The Burnham-SEV partnership unlocks a superior project execution model. As a one-stop-shop for development, financing, and operations, customers know who they will be working with for the lifetime of the project, from conception to operation, and the tightly integrated team enables execution to occur with increased speed and certainty. The Burnham-SEV partnership is built around four key values: • Excellence in development: seasoned professionals with decades of development experience. Page 231 of 297 12 • Financial and operational acumen: private equity backed with an experienced team that has financed and operated numerous large-scale renewable energy, bioenergy, waste processing, and manufacturing facilities. • Comprehensive solutions: from origination to operations, full in-house project execution minimizes risk, speeds development, and increases project value. • A focus on partnerships: dedicated to working with project participants as partners, not just suppliers, to maximize project benefits to all. Burnham is backed by a multi-million-dollar commitment from Edge Natural Resources, a leading energy private equity firm. While the Burnham team brings collectively over 100 years of experience, as an entity that is less than one year old, it does not yet have annual audited financials or total annual revenue figures to provide as part of this RFP response, but the company welcomes the opportunity to further discuss with the City its financial backing, its financial standing and projected revenues, and the prior financial performance of its executive team. 4.1.1.1 Burnham-SEV Organization Chart An organization chart outlining the leadership teams and structure for Burnham and SEV is provided in Figure 1. Figure 1: Burnham-SEV Org Chart Burnham RNG Chris Tynan CEO Mike Carter VP, Eng. & Ops Vanja Torbica VP, Strategy Steve Horowitz VP, Finance SEV Walker Dimmig Director, Dev. Ralph Epling Director, Orig. Ric Redman GC and CXO Page 232 of 297 13 4.1.1.2 Burnham Key Personnel Chris Tynan, Founder and CEO Chris has over twenty years of experience in the development and financing of infrastructure projects. Chris was an early employee of Enviva, LP (NYSE:EVA), a producer of low carbon biomass fuel from wood waste. During his seven years with the company, Chris helped the company grow from $10 million to nearly $200 million in EBITDA. Before Enviva, Chris held positions at leading renewable energy development and investment firms including Summit Power Group, Hudson Clean Energy Partners and EIF. Chris received his MBA in Finance from the Wharton School where he received a Wharton Merit Fellowship. Mike Carter, VP or Engineering and Operations Mike brings over 16 years of technical and operations leadership from a broad range of industries including textiles, communications, automotive, and biomass. Mike was also an early employee at Enviva (NYSE:EVA), where he stood up both the Centers of Excellence Engineering and the Small Capital Project teams, as well as led multiple operating assets in the Mid-Atlantic region. Mike received both his BS and MS in Mechanical Engineering from the University of North Carolina at Charlotte. Steve Horowitz, VP of Finance and Capital Markets Steve brings over twenty years of experience in originating, structuring, and financing complex transactions involving infrastructure assets, commodities, environmental attributes, and transportation equipment. Steve recently joined Burnham from NextEra Energy in which he focused on wholesale power and renewables marketing. Before NextEra, Steve held positions at global investment banks including Commerzbank, Deutsche Bank and J.P. Morgan. Steve holds a CFA, a B.B.A from Temple University in Finance and a MBA from Drexel University. Vanja Torbica, Co-Founder and VP of Strategy Vanja brings 15 years of experience in building and operating early-stage companies. Vanja was employee #2 at Unity Biotechnology (NASDAQ: UBX) where he led corporate development and strategy from incubation until it was a 70-person, $400M company. In addition, Vanja has held operating roles at Moment, Mavrx, and Current Energy. He started his career working in project finance at Wellford Energy, a boutique investment bank. Vanja is an early-stage utility player that knows what it takes to stand up new companies and has a passion for building them from scratch. 4.1.1.3 SEV Key Personnel Walker Dimmig, Principal and Director of Project and Corporate Development Walker Dimmig is the Director of Project and Corporate Development at SEV. Prior to SEV, Walker was with Darcy Partners, where he developed two technology consulting practices advising over seventy oil and gas companies and utilities on emissions reduction and sustainability. Before Darcy, Walker spent nine years in several leadership positions at NET Power, a leading technology company in emissions-free natural gas power generation. At Page 233 of 297 14 NET Power, Walker raised over $140 million in equity, developed the world’s first supercritical CO2 power plant, and initiated a pipeline of commercial projects. Ralph Epling, Founder and Director of Origination Ralph is the founder of SEV and has spent 40 years in the energy industry, 30 of which were with BP and IGI Resources in the natural gas sector. Since 2012, Ralph has worked in the renewable natural gas (RNG) business for BP and then with SEV, where he has been responsible for RNG purchase and sale transactions totaling over $1 billion and has helped pioneer various RNG contractual structures. Ralph is a graduate of Oregon State University with Bachelor of Science in Mechanical Engineering (BSME). Ric Redman, Principal, CXO, and General Counsel Eric (Ric) Redman, a lifelong Washington resident, is the CXO & General Counsel of SEV. Ric has spent 47 years in the energy sector, primarily working in electric power as well as the oil and gas sector. He is the former CEO of Summit Power Group, a project development company which, during his tenure, developed several billion dollars of facilities. He was a legislative aide to former U.S. Senator Warren G. Magnuson (D-WA) and became a principal drafter of the Northwest Power Act. Ric graduated from Harvard College, Oxford University as a Rhodes Scholar, and Harvard Law School. 4.1.2 Wastewater Treatment Design, Engineering, Equipment Supply The core wastewater treatment system in this proposal has been designed and costed by ADI® Systems, an Evoqua brand. ADI Systems has been specializing in providing industrial wastewater treatment systems for more than 40 years. With over 300 installations worldwide and decades of application experience, they are proud to be recognized as a trusted solution provider capable of delivering successful biological projects around the world. ADI Systems offers a complete range of biological solutions for high-BOD industrial wastewaters including anaerobic digestion, aerobic treatment, biogas treatment and utilization, and water re-use. Evoqua has an unmatched list of global BVF and SBR installations, with over 160 BVF system installs and 500 SBR system installs, and over 900 jet aeration and/or decanter installs. There are numerous BVF reactors (over 50) treating the same type of wastewater (dairy, potato, vegetable processing) as is required to be treated in this project. BVF reactor installations have also been installed at a similar scale as to those proposed here (i.e. 30 to 40 MG volume). ADI Systems has completed over 120 design-build industrial wastewater treatment projects in North America over the last 40 years, including many installations with the vast majority in the food processing industry. The company’s staff consists of process engineers, project managers, site engineers, laboratory technologists, design engineers, and support staff — some of whom have been working together for over 20 years. Page 234 of 297 15 ADI Systems delivers the following benefits to each of its projects: • Wealth of expertise. Ability to recognize and apply the appropriate treatment technologies, process and materials. Strong in-house design capability, construction management skills, and aftercare operating expertise to execute the project to your satisfaction. • Quick delivery. We are experienced construction managers and we will get the system constructed and ready to receive wastewater on schedule. • Professionalism. Excellent reputation and well-known for professionalism and customer service in carrying out design/build projects with extensive references available upon request. • Quality. Processes that work and designs that last. • Customer service and support. Process experts who are experienced in start-up, aftercare, and troubleshooting of wastewater treatment plants worldwide. 4.1.3 Gas Conditioning This proposal includes the participation of Greenlane Biogas for gas conditioning services and technology. More biogas is upgraded around the world by Greenlane systems than by any other provider. Greenlane has been in business for over 30 years and has installed more than 140 biogas upgrading systems across all applications, including wastewater treatment plants. Greenlane provides comprehensive solutions for biogas upgrading, including all equipment and processes required from biogas collection to the pipeline injection point. In addition, Greenlane offers all three of the primary biogas upgrading technologies—Pressure Swing Absorption (PSA), water wash, and membranes—so that cost-effective, reliable solutions can be tailored to a project’s specific biogas composition and upgrading needs without a bias towards a single approach. The company also offers installation, operator training, and performance testing services, as well as ongoing remote monitoring and management, all to ensure the system is operating with optimal performance. 4.1.4 Engineering, Procurement, Construction The project development team proposes to work with Ferndale, Washington-based IMCO Construction to provide engineering, procurement, and construction services to the project. IMCO has been in the construction business since 1978 and serves the water and wastewater, hydropower, dam, transportation, marine, and fish hatchery industries. The company works with both public and private entities and offers design-build, progressive design-build, General Contractor/Construction Manager, design-bid build, and operations and maintenance services. IMCO employs over 200 craft personnel and owns the full equipment fleet required to complete the work outlined in this proposal. The company regularly self-performs up to 80% of the work on their contracts—including large-scale earthworks, demolition, pile driving, sheet pile installation, cast-in-place concreate, pre-cast concrete, mechanical, and structural steel— enabling them to ensure work is completed on time and to the highest standards. Page 235 of 297 16 IMCO has an award-winning safety program and strong safety culture. Their safety team works directly with the on-site management team to implement project specific safety program from start to finish. They are committed to the relentless pursuit of safety for personnel, property, and the environment, and believe that healthy worksites mean healthy workers. 4.2 HISTORY 4.2.1 Project Team Representative Projects List A list of Reference Projects is provided in Table 1. This list is non-exhaustive—the entities that have participated in this response have together developed, designed, engineered, financed, constructed and/or supplied equipment to hundreds of projects. The Reference Projects merely represent a subset of projects that demonstrate the specific expertise and experience needed to successfully execute the Project in this RFP, in many cases for clients who are also the Processors supplying their wastewater to the City of Pasco. Table 1: Reference Projects List Project / Owner Entity Location Date Scale Role Details City of Tacoma WWTP Burnham/ SEV Tacoma, WA 2017 $50 MM1 RNG Offtake Market: Compliance Counterparties: BP, City of Tacoma Renton WWTP Burnham/ SEV Renton, WA 2014 $100 MM1 RNG Offtake Market: Compliance Counterparties: BP, King County King County Landfill Burnham/ SEV King County, WA 2012 $438 MM1 RNG Offtake Market: Compliance Counterparties: BP, Puget Sound Energy Roosevelt Landfill Burnham/ SEV Roosevelt, WA 2017 $493 MM RNG Offtake Market: Voluntary and Compliance Counterparties: Klickitat PUD, BP, Puget Sound Energy NW Natural Gas Burnham /SEV Portland, OR 2021 $550 K RNG Offtake Market: Voluntary Counterparties: BP, NW Natural Gas Portage La Prairie Evoqua Canada 2018 2.40 MGD AD System Technology: BVF Reactor Waste: Potato and Veggie Processing Lamb Weston/ ConAgra2 Evoqua USA 1987 0.7 MGD AD System Technology: BVF Reactor; SBR Waste: Potato Darigold, Inc2 Evoqua USA 1995 / 2009 .22 MGD AD System Technology: BVF Reactor Waste: Dairy Page 236 of 297 17 Simplot Canada Limited2 Evoqua Canada 2004 / 2018 3.3 MGD AD System Technology: BVF Reactor Waste: Potato Kansas Dairy Ingredients Evoqua USA 2017 0.35 MGD SBR System Technology: SBR Waste: Dairy HP Hood Evoqua USA 1999 / 2003 0.37 MGD AD and SBR Systems Technology: BVF Reactor; SBR Waste: Dairy Anacortes WWTP IMCO Anacortes, WA 2014 $56M / 42 MGD Prime Contractor Client: City of Anacortes Boeing Industrial WWTP IMCO Everett, WA 2014 $20M Construction Client: Boeing Holden Mine WTP IMCO Chelan County, WA 2016 $25M / 3 MGD Construction / Operations Client: Rio Tinto AUM Eugene/ Springfield WWTP Greenlane Eugene, OR 2020 500 scfm Gas Upgrading Technology: PSA Destination: Pipeline Injection City of Portland WWTP Greenlane Portland, OR 2018 1250 scfm Gas Upgrading Technology: Water Wash + PSA Polisher Destination: Pipeline Injection Lulu Island WWTP Greenlane British Columbia 2020 270 scfm Gas Upgrading Technology: Water Wash Destination: Pipeline Injection Yakima Dairy Project Greenlane Yakima, WA 2019 800 SCFM Gas Upgrading Technology: PSA Destination: Pipeline Injection Contacts at individual projects may be provided upon request but were not able to be supplied in this RFP for confidentiality reasons. The Developer does not have any terminated or shut down facilities to report, and, in the last 10 years, the Developer has not been awarded the RNG utilization rights where it took longer than three years to bring the RNG project online, and/or where RNG utilization rights agreements were terminated due to failure to bring an RNG project online in a timely manner (or for any other reasons). Page 237 of 297 18 5. DESCRIPTION OF PROPOSED PROJECT 5.1 Facility Basis of Design This proposal provides two design options for the City to consider. The first, Option 1, utilizes the design basis as presented in the RFP and is the larger of the two facilities. The second, referred to as Option 2, excludes Lamb Weston’s processing plant wastewater. While the respondents consider Option1 to be the base case because it meets the requirements and data provided by the RFP, Option 2 was provided in order to also enable the City to assess the project should Lamb Weston opt not to participate, given that they do not currently utilize the City’s wastewater treatment services. Throughout this RFP response, it should be assumed that the information provided is in relation to Option 1, unless otherwise specified. 5.1.1 Option 1 Basis of Design: Influent and Effluent Characteristics The design wastewater flows, organic loads, and the expected effluent for each unit operation for the treatment system for Option 1, are presented in Table 2 below. Table 2: Option 1 Design Raw Wastewater, ADI-BVF® Effluent, and SBR Effluent Characteristics Parameter Raw Wastewater ADI-BVF® Reactor Effluent SBR Effluent Flow, Annual Average (MGD) 7.31 7.31 7.31 Flow, Peak Month (MGD) 12.18 12.18 9.6** BOD, AVG (mg/l) 2,800 280 <100 BOD, Daily AVG. Load (lb/d) 170,800 13,630 --- BOD, Daily Month Load (lb/d) 337,100 24,340 < 6,100 COD, AVG (mg/l)* 5,600 560 <200 COD, Daily AVG. Load (lb/d)* 341,600 27,300 <12,190 COD, Daily Month Load (lb/d)* 674,200 48,680 --- TSS, AVG (mg/l) 1,710 350 <100 TSS, AVG. Load (lb/d) 104,200 21,340 < 6,010 TN, AVG (mg/l) 100 90 28** TN, Daily AVG. Load (lb/d) 5,990 5,490 2,320 TN, Daily Month Load (lb/d) 9,350 9,180 --- pH (s.u.) --- 6.5-7.5 6-9 Temperature (°F) 74* 85-98 --- *Assumed **BVF reactor effluent flows >9.6 MGD to bypass SBR to holding ponds Page 238 of 297 19 5.1.2 Option 2 Basis of Design: Influent and Effluent Characteristics The design wastewater flows, organic loads, and the expected effluent for each unit operation for the treatment system for Option 2, are presented in Table 3 below. Table 3: Option 2 Design Raw Wastewater, ADI-BVF® Effluent, and SBR Effluent Characteristics Parameter Design Influent Expected BVF Effluent Expected SBR Effluent Flow, Annual Average (MGD) 4.89 4.89 4.0** Flow, Peak Month (MGD) 9.21 9.21 --- BOD, AVG (mg/l) 3,560 360 <100 BOD, Daily AVG. Load (lb/d) 145,400 14,540 <3,340 BOD, Daily Month Load (lb/d) 285,100 27,340 --- COD, AVG (mg/l)* 7,120 720 <200 COD, Daily AVG. Load (lb/d)* 291,000 29,100 <6670 COD, Daily Month Load (lb/d)* 570,200 54,680 --- TSS, AVG (mg/l) 1,760 350 <100 TSS, AVG. Load (lb/d) 83,520 14,270 <3,340 TN, AVG (mg/l) 96 86 25*** TN, Daily AVG. Load (lb/d) 3,880 3,510 <830*** TN, Daily Month Load (lb/d) 7,370 6,630 --- pH (s.u.) --- 6.5-7.5 6-9 Temperature (°F) 74* 85-98 --- *Assumed ** BVF reactor effluent flows >4 MGD to bypass SBR to holding ponds ***Average over the year 5.2 PROCESS FLOW DESCRIPTION 5.2.1 Introduction The proposed project is a wastewater treatment and RNG facility that provides the City of Pasco and the Processors with a reliable, cost-effective, and environmentally responsible solution. The proposed facility includes all required equipment and systems to fully treat the Processor wastewater to the specified effluent limits, starting with the acceptance of raw wastewater from the City and ending with the delivery of treated wastewater back to the City and pipeline quality RNG to Williams Northwest Pipeline. The facility includes three primary process blocks: anerobic digestion for wastewater BOD and COD reduction and biogas Page 239 of 297 20 production; an activated sludge process for nitrogen reduction; and a gas conditioning system to upgrade biogas to RNG. Ancillary equipment, such as grit removal and an RNG pipeline and interconnection, are also included in the proposed system design. The design represents an approximately 30% project design and is capable of quickly moving to a complete design should the RFP be awarded to the Developer and the final basis of design be agreed-to by the City, the Processors, and the Project. A full process description is provided in the following section beginning with the acceptance of raw wastewater from the City. Detailed Process Flow Diagrams for the full wastewater treatment system are provided in Exhibit C. 5.2.2 Process Flow Description 5.2.2.1 Raw Wastewater Rotary Drum Screens and Conveyor/Compactors The raw wastewater will be collected and pumped by the City to the proposed project. The raw wastewater enters a headbox where the energy is dissipated, and the flow is evenly distributed onto the interior of a rotary screening drum (two duty and one standby) capable of handling a peak flow. Solids particles (> ¼") are retained on the screen surface while the liquid flows radially out through the screen openings. Screened solids are transported axially, by internal flights, to the open end of the rotary drum screen. The entire screening surface is intermittently washed by a fixed external spray bar. Washed and compacted screened solids will be transferred and collected in a storage bin for final disposal. Figure 2: Rotary Drum Screen 5.2.2.2 Grit Vortex System The screened raw wastewater will be delivered to a grit vortex system for grit removal. The raw wastewater is introduced into the grit system via a tangentially positioned inlet, causing a rotational flow path around the dip plate. The flow spirals down the wall of the chamber as solids settle out by gravitational forces and forces created by the rotating flow. The grit collects in the grit pot as the center cone directs flow away from the base, up and around the center shaft into the inside of the dip plate. The upward flow rotates at a slower velocity than the outer downward flow. The resulting "shear" zone scrubs out the finer particles. The concentrated grit Page 240 of 297 21 underflow is gravity fed to a grit classifier for dewatering. The result is clean dewatered grit with low organic content. Figure 3: Grit King Vortex System 5.2.2.3 Raw Wastewater Lift Station The raw wastewater lift station will accept raw wastewater from the grit system. The influent lift station level will be monitored by a level transmitter. The level transmitter will be used to control the operation of the EQ feed pumps, which transfer raw wastewater from the influent lift station to the EQ tank. 5.2.2.4 EQ Tank The influent EQ tank with a liquid volume of 2 MG for Option 1 and 1.6 MG for Option 2 will accept raw wastewater from the raw wastewater lift station. At design flow conditions, the covered EQ tank will provide approximately 6 hours of hydraulic retention time (HRT). The EQ tank will be equipped with three side-entry mixers). The EQ tank will provide mixing of the incoming process wastewater and attenuate changes in process wastewater flow, organic strength, alkalinity, pH, temperature, etc. prior to the biological treatment process. The contents of the influent EQ tank will be pumped to either the anaerobic ADI-BVF reactors (via the reactor feed pumps) or the SBR tanks (via the bypass pumps). The EQ tank odor control system consists of a fan (with suction-side piped to the headspace of the EQ tank and discharge side piped to distribution piping in the base of a biofilter) and a biofilter. The fan operates continuously and will transmit EQ tank headspace gas into the base of a biofilter. As the headspace gas rises through the biofilter, the odor is absorbed by the media. 5.2.2.5 ADI-BVF® Reactor The BVF® system is a low-rate anaerobic technology which provides a long hydraulic retention time (HRT), large biomass inventory, and exceptionally long solids retention time (SRT). These factors result in a robust, stable, resilient treatment system that provides the ability to digest wastewater with high concentrations of BOD and TSS, greater stability during peak loads, Page 241 of 297 22 lower supplemental nutrient/alkalinity requirements, high COD/BOD removals, greater flexibility in terms of waste sludge handling and disposal, and a good quality anaerobic effluent. Each BVF reactor will be an in-ground earth basin with an effective working volume of 40 MG for Option 1 and 33 MG for Option 2. The ADI-BVF reactor is a low-rate anaerobic, up-flow sludge blanket process. Wastewater enters the BVF via a specially designed piping network beneath the sludge bed to ensure optimum substrate to biomass contact. As the wastewater passes upward through the sludge blanket, microorganisms digest the majority of the organics, reducing COD and BOD, while generating biogas. The reactor supernatant and/or settled anaerobic sludge (SREC and RANS) will be returned via recycle pumps to mix with the reactor influent. The recycle serves to attenuate shock hydraulic/organic loading conditions and to buffer pH, alkalinity, temperature, and organic loading. Additionally, the recycle will improve biomass/substrate contact and ensure a sludge bed is maintained over the influent distribution system. Magnesium hydroxide (Mg(OH)2) will be added on the SREC/RANS line via metering pumps in order to provide sufficient alkalinity for biomass growth and metabolism. Two boilers are included for heating the reactors (further information on wastewater temperature is required to verify heat requirements). Each BVF has a floating, insulated, geomembrane cover system which is sealed to the reactor perimeter concrete wall allowing collection of biogas and odor control. The cover system includes a self-draining system to minimize rainwater accumulation on the cover. The anaerobic digestion process continuously produces biogas which is collected beneath the reactor cover and delivered to the biogas conditioning system. It is estimated that annual average and monthly peak day biogas flows of 2,390,000 ft3/d and 4,720,000 ft3/d, respectively for Option 1, and 2,036,000 ft3/d and 3,975,000 ft3/d, respectively (at STP conditions) for Option 2 will be generated at design conditions. The biogas will have a composition of approximately 65% methane, 35% carbon dioxide, and approximately 1,800 ppm hydrogen sulfide (assumed value for H2S content since no sulfurous data for the wastewater has been provided), with the remainder representing water vapor and some minor gases. Biogas will be cleaned and sent to the pipeline as described in the below Gas Conditioning System description. There are two enclosed flares for burning of biogas, as required, and those are also described below. The proposed ADI-BVF reactor system will serve as the workhorse of the treatment system by anaerobically digesting the majority of the influent organics. The ADI-BVF reactors are expected to remove greater than 90 percent of the BOD load, and the BVF effluent will flow by gravity to the four SBRs for N removal and aerobic polishing. 5.2.2.6 SBR System The sequencing batch reactor (SBR) as its name implies, is a batch treatment technology. The aerobic SBR is a variation of advanced activated sludge, where the SBR basin serves the intended purposes of the selector, anaerobic, anoxic, aeration and clarifier basins (all unit processes of advanced activated sludge) in a single vessel. In this case, where nutrient removal is not required at the present time, the SBR cycle will not necessarily use anaerobic or anoxic environment events. Page 242 of 297 23 To take advantage of SBR versatility, the treatment of anaerobic effluent is done in cycles. The cycle is defined as the elapsed time between feeds of consecutive batches of wastewater. During a cycle, anaerobic effluent is fed, treated, settled, and then discharged. The cycle duration is variable; however, to reach certain treatment objectives, the cycle and event durations are limited by the hydraulics of the system and by the kinetics and settling characteristics of the biomass. SBR Cycle of Events The SBR system is an activated sludge process that uses a repeating sequence of process events to generate a high quality final effluent. The sequence and duration of events are operator-adjustable to meet the treatment goals, but in general, there are five events that occur during an SBR cycle: 1. FILL – The wastewater effluent is distributed into the SBR. The FILL event can take place under aerated or non-aerated conditions. 2. MIX – One floating mixer will be used in each SBR basin, and MIX events will be included in the SBR cycle. Mixed, non-aerated conditions promote denitrification for N removal. The floating mixer in each SBR will provide mixing and allow the FILL event taking place under mixed or unmixed conditions. 3. REACT – Aeration blowers and fine bubble diffuser aeration system will provide aeration in the SBRs. Aerated conditions serve to oxidize organic carbon, and nitrify ammonia. 4. SETTLE – This event takes place when all mixing and aeration is turned off and the mixed liquor solids settle, allowing a clear supernatant to form in the upper part of the reactor. 5. DECANT – When a substantial depth of supernatant has formed, supernatant is drawn off the upper portion of the reactor at a controlled rate. Sludge wasting will occur during this time as well, as the settled sludge bed will have attained a maximum solids concentration. Page 243 of 297 24 Figure 4: SBR Cycle of Events In the SBR system, air is supplied for BOD removal and nitrification using a fine bubble diffuser aeration system consisting of eight aeration blowers. The SBRs will achieve nitrification and denitrification to meet the TN removal treatment objective (TN < 28 mg/l for Option 1 and 25 mg/l for Option 2). Each SBR will be equipped with a floating decanter. The operation of each decanter achieves the following: • Prevents the mixed liquor suspended solids (MLSS) from being deposited in the decanter and effluent piping during the React (Mix and Aerate) events • Withdraws clarified supernatant during the Decant event Each decanter consists of an FRP float and draw tube with stainless-steel spring-loaded solids excluding plugs, a heavy-duty wire reinforced flexible hose, steel knee brace, and elbow which connects the decanter to the wall sleeve in the basin. The decanters float up and down with the changing water level. During a Decant event, the opening of the effluent control valves outside the SBR tank creates a hydraulic differential, causing the spring-loaded plugs to open and allow treated effluent to enter the decanter and discharge to the effluent standpipe. During all non-Decant events, the spring-loaded plugs close, preventing mixed liquor suspended solids from entering the SBR effluent piping during non-Decant events. The SBR system will produce a high-quality effluent that meets the treatment objectives for BOD, TSS and TN. Each individual SBR basin will discharge effluent in batches; however, the sequencing of events across all SBR basins will result in a continuous or near-continuous flow of effluent to the point of discharge. Page 244 of 297 25 Waste activated sludge (WAS) generated from the SBR system will be pumped to the BVF reactors for anaerobic digestion during the Settle/Decant events for the SBRs. The estimated waste anaerobic sludge (WANS) generated from the proposed BVF treatment system is 27.6 MG/yr for Option 1 and 22.8 MG/yr for Option 2 at 4% solids concentration (including WAS from SBRs). The waste sludge is digested, well stabilized, and is composed of nutrient-rich mixture of biomass and undigested solids, which is stable and can be directly land-applied as good fertilizer as a result of its high nutrient content in agricultural applications (soil conditioning). The large sludge inventory of the BVF reactor allows for waste sludge storage for a significant period of time (sludge wasting can be done in campaigns whenever it is convenient for the Owner during the year). 5.2.2.7 Gas Conditioning System The proposed gas conditioning system has been designed by Greenlane biogas and includes all equipment and processes required to accept the raw biogas from the AD system and provide pipeline quality natural gas to the interconnection to the Williams Northwest Pipeline. Raw biogas collected by the AD geomembrane cover will be conveyed by biogas blowers prior to the bulk H2S reduction system. During this stage, bulk liquids will be separated, and the gas will be compressed and cooled. The raw biogas will be sent to a caustic (NaOH) wash system for bulk H2S removal. The gas passes through a chemical wash of sodium hydroxide (NaOH) which reacts chemically with the H2S converting it into elemental sulfur and separating it from the gas stream. The sulfur is then collected through sedimentation. The NaOH is then recovered through oxidization and reused. Following bulk H2S removal, H2S polishing will take place, whereby the gas passes through a vessel containing an iron oxide media which reacts with the H2S, converting it into a non- hazardous sulfur compound, and separating it from the gas stream. A compression and dehydration system will then be used to further remove bulk liquids, compress the gas, cool it via ambient air, and then chill it via a mix of glycol and water so that the gas can be delivered to the upgrading processes at the ideal temperature, dew point, and pressure. Condensate will be removed during this stage at the coldest point. The gas is then sent to the primary PSA upgrading system, which will separate out CO2, N2, O2, and water vapor from the methane in the gas stream. The PSA system is particularly well- suited to remove nitrogen, which will be needed in order for the biogas from this project to meet pipeline specifications. During this process, the gas will pass through an adsorptive media which traps the CO2, N2, O2 and H2O molecules. The CH4 molecules are not trapped by the media and pass through, resulting in a clean, pressurized stream of bio-methane (RNG). The system operates in a continuous, 12-vessel, fast cycle PSA process controlled by a single rotary valve. The use of 12 beds provides for four depressurization steps, resulting in higher methane recovery and smoother outlet flow than 4 or 9 bed systems. The valve moves each of the 12 vessels through a sequence of upgrading and regeneration steps. Regeneration is achieved by depressurizing the vessel and pulling a vacuum. The vacuum causes the media to Page 245 of 297 26 let go of the collected CO2, N2, O2 and H2O molecules which are then carried of the vessel via the vacuum blower. Other ancillary system equipment includes Williams-specified gas analyzers to ensure the gas meets pipeline specifications prior to injection into the pipeline lateral. The system includes two enclosed flares to be used in several scenarios. First, should any unplanned outages or upset conditions result in the inability of the biogas to be upgraded and injected, the biogas will be routed to the flares. Second, should at any point in time the upgraded gas not meet pipeline specifications immediately prior to injection, it will also be routed to the flares so that off-spec gas does not enter the pipeline system. 5.2.2.8 Lateral Pipeline and Interconnection Following upgrading, the now pipeline quality natural gas will be compressed and injected into a lateral pipeline adjacent to the gas upgrading system. The lateral will transport the gas approximately 2.7 miles to an interconnection to be installed into the Williams Northwest Pipeline. Williams Northwest has provided a design and estimate for this portion of the project, for which they would be responsible under the current project proposal. Should the Developer be selected by the City to pursue the project, a cost-savings evaluation would be conducted on an alterative proposal, where a third party constructs the pipeline and compression and makes use of an existing pipeline tap at the Franklin PUD peaking plant, located adjacent to the proposed interconnection point. The Developer has a Letter of Intent in place with Franklin PUD to lease this site. 5.2.2.9 Additional Process Considerations Several additional process elements have been evaluated by the Developer and may be incorporated into the final project design. First, discussions have recently begun with Basin Disposal for the project to accept a slurry of the commercial food waste they collect. The volume of this slurry is less than 1% of the overall flow into the system, and its high strength should result in beneficial biogas production. If the Developer is selected to pursue the project, they will attempt to negotiate a term sheet with Basin Disposal and incorporate their flows into the final project design basis. The addition of this element to the project will have several benefits, including enabling Basin to dispose of the food waste in an environmentally sound way while also providing them with renewable natural gas which can be used to fuel several of their compressed natural gas trucks. Additionally, the Developer, working with a local soil amendment partner who they collaborate with on other projects in the region, will evaluate the digester sludge for possible upgrading to higher value products. While the sludge does have nutrient value and is safe to land-apply, that typically comes at a cost. By upgrading the sludge to a higher value product, such as through composting, it’s possible it could be converted from a cost center to a profit center for the project, or in the least become cost neutral. The Developer is also separately exploring biochar opportunities and believes this project would be an ideal pilot for biochar technologies to be tested on the sludge to create an even higher value product with long term carbon benefits. The developer has confirmed interest in participation in this work from the Center for Page 246 of 297 27 Sustainable Infrastructure, as it would further underpin the industrial symbiosis of the facility, helping it to become a model for other cities. 5.3 TECHNOLOGY AND EQUIPMENT OVERVIEW 5.3.1 Key Wastewater Treatment System Components 5.3.1.1 Option 1 The design of the anaerobic and aerobic wastewater treatment system for Pasco PWRF shall consist of the following major components for Option 1: 1. Three rotary drums screen (perforation of ¼") 2. One vortex grit system 3. Influent pump station complete with: • Three EQ feed pumps (3 @ 5,500 gpm) with VFDs • Instrumentation 4. One 2 MG covered bolted steel EQ tank complete with: • Fixed cover. • Three side entry mixers (3 @ 40 hp) • Three reactor feed pumps (3 @ 4,700 gpm) with VFDs • Two SBR bypass pumps (2 @ 1,000 gpm) with VFDs • EQ tank odor control system o Offgas fan o Biofilter with hardwood chip media o Offgas piping 5. Two 40 MG in-ground Type 'L' ADI-BVF reactors, each complete with: • Floating, flexible, insulated geomembrane cover system • Two mixers (2 @ 6 hp) • Two recycle pumps (2 @ 2,500 gpm) with VFDs • Sludge loadout connection. 6. Two natural gas fired hot water boilers, each with • 700 Bhp capacity • Shell and tube heat exchanger • Control panel • Hot water recirculation and treatment system 7. One 10,000 gal Mg(OH)2 tank complete with: • Two metering pumps • One mixer Page 247 of 297 28 • Instrumentation and controls 8. Biogas collection, transmission, and flare system complete with: • Emergency vents • Two enclosed flares with dedicated control panels • Instrumentation and controls 9. SBR system complete with: • Four 2.4 MG SBR concrete basins. • SBR internal influent distribution piping. • Automatic influent flow control valves (1 per basin, 4 total). • Floating mixers (75 hp each) in the SBR basins (one per basin, four total). • Fine bubble diffused aeration systems complete with aeration manifold piping, air diffusers, and eight aeration blowers total (300 hp per blower). • Decanters (one per basin, 4 total). • SBR internal waste activated sludge (WAS) withdrawal piping and automatic WAS flow control valves (one per basin, 4 total) and WAS pumps (2 @ 600 gpm). • Instrumentation, including level and DO/temperature transmitters. • Automatic effluent flow control valves (1 per basin, 4 total). • Effluent flow meter (one common to all SBR basins). • Effluent discharge piping 5.3.1.2 Option 2 The design of the anaerobic and aerobic wastewater treatment system for Pasco PWRF shall consist of the following major components for Option 2: 1. Three rotary drums screen (perforation of ¼") 2. One vortex grit system 3. Influent pump station complete with: • Three EQ feed pumps (3 @ 4,200 gpm) with VFDs • Instrumentation 4. One 1.6 MG covered bolted steel EQ tank complete with: • Fixed cover • Three side entry mixers (3 @ 30 hp) • Three reactor feed pumps (3 @ 3,600 gpm) with VFDs • Two SBR bypass pumps (2 @ 800 gpm) with VFDs • EQ tank odor control system o Offgas fan o Biofilter with hardwood chip media o Offgas piping Page 248 of 297 29 5. Two 33 MG in-ground Type 'L' ADI-BVF reactors, each complete with: • Floating, flexible, insulated geomembrane cover system • Two mixers (2 @ 6 hp) • Two recycle pumps (2 @ 1,900 gpm) with VFDs • Sludge loadout connection. 6. Two natural gas fired hot water boilers, each with • 600 Bhp capacity • Shell and tube heat exchanger • Control panel • Hot water recirculation and treatment system 7. One 10,000 gal Mg(OH)2 tank complete with: • Two metering pumps • One mixer • Instrumentation and controls 8. Biogas collection, transmission, and flare system complete with: • Emergency vents • Two enclosed flares with dedicated control panels • Instrumentation and controls 9. SBR system complete with: • Two 2 MG SBR concrete basins. • SBR internal influent distribution piping. • Automatic influent flow control valves (1 per basin, 2 total). • Floating mixers (75 hp each) in the SBR basins (one per basin, two total). • Fine bubble diffused aeration systems complete with aeration manifold piping, air diffusers, and eight aeration blowers total (250 hp per blower). • Decanters (one per basin, 2 total). • SBR internal waste activated sludge (WAS) withdrawal piping and automatic WAS flow control valves (one per basin, 2 total) and WAS pumps (2 @ 500 gpm). • Instrumentation, including level and DO/temperature transmitters. • Automatic effluent flow control valves (1 per basin, 2 total). • Effluent flow meter (one common to all SBR basins). • Effluent discharge piping • Gas conditioning 5.3.2 Key Gas Upgrading System Components 5.3.2.1 Raw Biogas Blowers The raw biogas blower system consists of an enamel coated structural steel base plate with a 1/4” plate deck and lifting lugs, and including the following items fully mounted and Page 249 of 297 30 interconnected with all necessary on skid piping & wiring. The skid-mounted system will include the following components and equipment: 1. Suction Screen: A stainless-steel cone strainer with a dpi. 2. Inlet Separator: an ASME coded stainless steel vertical inlet separator including • Stainless steel mesh demister pad • An automatic condensate drain system • Liquid level indicator • High liquid level shut down 3. Gas Blower: a belt driven multi-stage centrifugal gas blower with • Aluminum impeller • Bearing housing in cast iron (installed externally to prevent contact with the gas), • Stainless steel shaft • Double lip PTFE shaft seal • Inlet and outlet flanged connections 4. Electric Motor: a VFD driven, TEFC 460V/3/60Hz electric motor including • Class 1 Division 2 (Zone 2) Group C & D electrical classification • Adjustable motor slide base • OSHA belt guard 5. Water Cooled Aftercooler • Manual shut off valve • Outlet temperature indicator • Globe valve 6. Discharge Separator: an ASME coded stainless steel discharge separator with • Stainless-steel mesh demister pad • Automatic condensate drain • Liquid level indicator • High liquid level shutdown 7. Control Panel: a Nema 4 skid mounted control panel including • PLC and HMI • Fully configurable solid-state fault annunciator panel with digital read-out • Hours/elapsed time meter • Last shutdown and time of occurrence • Serial communications port • ESD (emergency shutdown) button • Suction pressure transmitter • Discharge pressure transmitter • Discharge temperature thermocouple • High & low suction pressure shutdowns with fault indication Page 250 of 297 31 • High discharge pressure & temperature shutdowns with fault indication • High inlet separator liquid level switch • All safety switches and end devices are pre-wired to a terminal strip in the panel 8. Gauges & Instrumentation • Suction & discharge gas pressure & temperature indicators 9. Piping: stainless steel and fabricated and tested to ASME code section B31.3, including • Spectacle flanges on the inlet and outlet • Nitrogen purge ports • Pickling & passivation of welded pipe • Process gas piping 2 ó” and larger in diameter will be of butt-welded construction • Process gas piping 2” and smaller will be of cold formed stainless steel tubing construction 10. Valves & Regulators • Manual inlet and discharge shut off valves • Discharge check valve • Discharge pressure relief valve • Low suction pressure recycle regulator 5.3.2.2 Bulk H2S Reduction System 1. Demisters • Inlet demister to remove liquids and aerosols from the biogas 2. Scrubbing Towers: fiberglass vessel with a flat bottom for installation on a flat smooth surface, including • Packing media to maximize contact between the gas and the wash solution • Ports for loading and unloading the packing media • Overflow & drain • PVC liquid distributor consisting of a pump, spray nozzles, and interconnecting PVC piping solenoid valves 3. Oxidization Tanks: polypropylene tank with a flat bottom for installation on a flat smooth surface, including • Overflow & drain • Air blower to oxidize the H2S • Electrical pump to re-circulate the solution between the oxidation tank and the scrubbing tower • Interconnecting piping and valves 4. Sedimentation Tanks • An FRP tank to separate sulfur sediment from the liquid solution and ensure laminar flow Page 251 of 297 32 • A sulfur sludge pump 5. Caustic & Additive Dosing System • pH-meter • Two dosing pumps • Timer 6. Makeup Water System • Level probe • Solenoid valve connected to the water supply 7. Control Panel 5.3.2.3 H2S Polishing 1. An insulated FRP vessel including: • Flanged media fill port • Media support and gas distribution system • Flanged inlet & outlet ports with neoprene spherical expansion joints • Inlet & outlet block and bleed valves • Inlet butterfly valves (lug style, cast iron body, Viton seats, & stainless discs & stems) with chain operated actuators • Outlet butterfly valves (lug style, cast iron body, Viton seats, & stainless discs & stems) with gear-operated hand wheel actuators • Neoprene vessel pad • Flanged side manway • Pressure relief valve 5.3.2.4 Compression and Dehydration Systems 1. Suction Screen • Stainless steel cone strainer with a dpi 2. Inlet Separator: ASME coded stainless steel vertical inlet separator including • Stainless steel mesh demister pad • an automatic condensate drain system • a liquid level indicator • a high liquid level shut down 3. Compressor: a rotary screw gas compressor package including • Precision cut helical asymmetric ductile iron rotors • Mechanical shaft seals • Integral gear box • Oil filter assembly • Thermal oil bypass valve • Initial fill of compressor lubricant Page 252 of 297 33 4. Electric Motor • A VFD driven TEFC 460V/3/60Hz electric motor including a flexible direct coupling 5. Discharge Separator: ASME coded stainless steel discharge separator with • Stainless steel mesh demister pad • Automatic condensate drain • Liquid level indicator • High liquid level shutdown 6. Oil/Gas Separator: ASME coded carbon steel vertical oil/gas separator including • Coalescing oil/gas filter element • Oil level indicator 7. Air Cooled Cooler: fan driven ambient air cooler for oil and gas cooling, including • Separate stainless-steel oil-cooler and gas cooler sections • Cooler fan motor and OSHA fan guard 8. Water Cooled Trim Cooler: tube & shell water cooled trim cooler including • Stainless steel tubes • Water shut off valve • Water temperature gauge • Discharge temperature gauge 9. Piping: all piping and fittings are stainless steel and are fabricated and tested to ASME code section B31.3, including • Spectacle flanges on the inlet and outlet • Nitrogen purge ports • Pickling & passivation of welded pipe • Process gas piping 2 ó” and larger in diameter of butt-welded construction • Process gas piping 2” and smaller will be of cold formed stainless steel tubing construction 10. Valves • Inlet and discharge check valves • Suction & discharge pressure relief valves (piped to a common vent line) • Recycle control valve with pneumatic controller and instrument regulator • Drain valves (piped to a common manifold) 11. Compressor Control Panel: Nema 4 skid mounted control panel including • PLC & HMI • Fully configurable solid-state fault annunciator panel with digital read-out • Run hours/elapsed time meter • Last shutdown and time of occurrence Page 253 of 297 34 • Serial communications port • ESD (emergency shutdown) button • Suction & discharge pressure transmitters • High & low suction pressure shutdowns with fault indication • High discharge pressure shutdown with fault indication • Discharge temperature thermocouple • High discharge temperature shutdown with fault indication • High inlet separator liquid level switch • All electrical end devices will be pre-wired to a terminal strip in the control panel 12. Gauges & Instrumentation • Suction & discharge gas pressure indicators • Discharge gas temperature indicator • Oil level indicator • Inlet separator liquid level gauge with isolation valve 13. Back-Pressure Control • Backpressure control designed to maintain a minimum differential pressure for adequate oil circulation and proper oil/gas separator operation. 5.3.2.5 PSA Upgrading System 1. 12 media vessels with individual pressure relief valves 2. Rotary valve with motor & proximity switch 3. Process Inlet • 304 stainless steel manifold with painted carbon steel branch piping • Manual isolation valve • Pressure gauge • Sampling ports • Coalescing filter with pressure differential monitor • Low point drain 4. Process Outlet • 304 stainless steel manifold with painted carbon steel branch piping • Manual isolation valve • Pressure gauge • Sampling ports • Coalescing filter with pressure differential monitor • Low point drain • Electrically actuated isolation valve • Backpressure control valve • Check Valve Page 254 of 297 35 5. Exhaust Outlet • Manual isolation valve • Vacuum blower bypass with electrically actuated isolation valve • Pressure gauge • Sampling Ports 6. Nema 4 Control Panel with PLC & HMI 5.3.3 Key Technology Block and Equipment Descriptions 5.3.3.1 Anerobic Digestion: ADI-BVF® Reactor The BVF® system is a low-rate anaerobic technology which provides a long hydraulic retention time (HRT), large biomass inventory, and exceptionally long solids retention time (SRT). These factors result in a robust, stable, resilient treatment system that provides the ability to digest wastewater with high concentrations of BOD and TSS, greater stability during peak loads, lower supplemental nutrient/alkalinity requirements, high COD/BOD removals, greater flexibility in terms of waste sludge handling and disposal, and a good quality anaerobic effluent. The biogas is collected under the geomembrane cover and will be transmitted to the enclosed biogas flares and/or to utilization (by others). The reactor operates under a slight vacuum to prevent the release of odors from the anaerobic system. The BVF technology provides the following benefits and advantages: • Low operating and maintenance costs as a result of simple-to-operate, low energy consumption design. Compared to other anaerobic treatment systems, the BVF reactor requires less mixing, chemicals, nutrients, and supplemental alkalinity, resulting in low operating and maintenance costs. Internal clarification is included in the BVF reactor design, eliminating the need for an external clarification unit to retain the anaerobic solids. • Adds process stability to entire treatment process. Due to long hydraulic retention time and significant biomass inventory, the low-rate BVF reactor is resilient against peak hydraulic and organic loads and toxic/inhibitory compounds. The BVF reactor provides built-in flow equalization and will consistently send a good quality anaerobic effluent to the downstream activated sludge system. • Satisfactory performance over a wide range of temperature conditions. Greatly improves the energy balance, extends anaerobic applicability, and further simplifies the overall treatment system. • Low waste sludge production rate and greater flexibility for waste sludge removal. Exceptionally long solids retention time (SRT) and low growth rate minimize sludge handling and disposal costs. Additionally, the large volume of the BVF reactor provides the flexibility of waste anaerobic sludge (WANS) storage, allowing WANS to be wasted from the BVF reactor as infrequently as twice per year. Waste sludge is stable and can typically be directly land-applied as liquid fertilizer. Furthermore, the BVF reactor will Page 255 of 297 36 digest waste activated sludge from the downstream SBR system which simplifies sludge management and reduces overall sludge production. • No need for granular sludge. Granular sludge required in high-rate systems is expensive and often difficult to obtain. Furthermore, granular sludge is difficult to retain with high-rate systems due to washout and degranulation. The BVF reactor efficiently retains flocculent biomass. • Geomembrane cover complements the design of the BVF® reactor: o Allows for collection and removal of biogas o Insulated for temperature control o Sampling ports allow reactor contents to be accessed while the reactor is operating o Allows for variations in liquid level o Efficient rainwater collection system, allowing rainwater to drain into the reactor o Good access (a person can readily walk anywhere on the cover) o Easy repair without taking the reactor out of service (operators are trained how to do this using a repair kit) 5.3.3.2 Nitrogen Removal: SBR System The SBR process is a variation of an activated sludge system which utilizes batch operation kinetics to aerobically treat the anerobic effluent. In the SBR, different environments are created by controlling process equipment such as blowers, pumps, and decanters during a timed cycle. The timing and sequencing of events in an SBR cycle (Fill/Mix, Aeration, Settle, and Decant) depend on the influent characteristics and the treatment objectives and can be adjusted as needed to meet discharge requirements. SBR technology will provide the following benefits and advantages: • Flexible control system and operations. A process controller/computer is used to coordinate the sequencing of events and environments in a single tank to treat wastewater in batches. By linking a programmable logic controller (PLC), the process is easily monitored and controlled on-site by plant personnel. The use of a computerized control system to operate the sequence of treatment events in the reactor also makes the process highly flexible. • Eliminates requirement for external secondary clarifier or return sludge pump. All process reactions and sedimentation take place in the same reactor vessel. The unit of time, rather than reactor volume, is used to separate process reaction events, minimizing the footprint required for wastewater treatment. • Easily adaptable to nutrient removal. The possible variations and combinations of events within the single reactor allow for the removal of organic carbon, suspended solids, ammonia-nitrogen, and total phosphorus. • Adjustable operation based on treatment objectives. The timing and sequencing of events in an SBR cycle depend on the influent wastewater characteristics and the treatment objectives. If necessary, an SBR cycle event can be changed quickly and Page 256 of 297 37 easily at any time in response to changing conditions (for example, lengthening the SETTLE time may be beneficial in circumstances of deteriorating sludge settleability). • No short-circuiting in settling. Some "pseudo-SBR"s on the market are designed to accept influent continuously and allow simultaneous feeding and decanting. However, all Evoqua SBR systems are "true batch" reactors and designed to operate having zero short circuiting, meaning no inflow or outflow during settling event. • Utilizes floating mixers for mixing and fine bubble diffusers for aeration. Mixing can be conducted without aeration during Mix events allowing anoxic conditions to promote denitrification for N removal. • Evoqua Decanter. The decanter is comprised of an FRP float and draw tube with stainless steel spring-loaded solids excluding valves, a heavy-duty wire reinforced flexible hose, steel knee brace, and elbow which connects the decanter to the wall sleeve in the basin. The decanter floats up and down with the changing water level. During a Decant event, the opening of the effluent control valve outside the SBR basin creates a hydraulic differential, causing the spring-loaded plugs to open and allow treated effluent to enter the decanter and discharge to the effluent standpipe. During all non-Decant events, the spring-loaded plugs close, preventing mixed liquor suspended solids from entering the SBR effluent piping during non-Decant events. The Evoqua decanter provides the following benefits and advantages: o Prevents solids from being deposited in the decanter and effluent piping during the React (Mix and Aerate) events o No electro-mechanical equipment or moving parts, which reduces maintenance and inspection requirements o Hinged knee brace assembly restricts horizontal movement of the decanter o Support assembly restricts vertical travel of the decanter Figure 5: Evoqua SBR Decanter 5.3.3.3 Gas Upgrading System The primary technology consideration for the biogas conditioning system is the type of upgrading system to employ. Gas upgrading is the primary step for the removal of impurities— such as CO2, N2, O2 and H2O—that is needed to meet pipeline gas specifications. In general, there are three main options to evaluate: PSA, water wash, and membrane. Greenlane was Page 257 of 297 38 selected as to provide the technology proposal at this stage of the project because, as one of the only vendors who offers all three options, they are able to provide an unbiased view of the technology best suited for the project. A PSA system was selected for gas upgrading primarily because it meets the nitrogen removal requirements of the project’s biogas, where other options will fall short. In the PSA system, the gas is compressed and then flows through vessels containing beds of a specialized adsorptive media. The CO2, N2, O2 & H2O molecules adhere to the surface of the media while the CH4 passes through, resulting in a continuous uninterrupted stream of high purity natural gas. The media is then regenerated in by applying a deep vacuum to the vessel which causes the media to release the collected contaminants. The methane recovered during regeneration is recycled back to the inlet ensuring the highest possible recovery rate. The process is controlled by a PLC on a continuous and fully automated cycle. The primary PSA benefits include: • High levels of nitrogen removal that other approaches cannot meet • Simultaneous separation of CO2, N2, O2 and H2O • A dependable & adjustable process 5.4 SITE OVERVIEW 5.4.1 Wastewater Treatment and Gas Upgrading The Developer proposes two potential sites for the project. Site A is the preferred site and utilizes approximately 20 acres of the 40-acre City-owned parcel located directly to the west of the existing PWRF storage lagoon. This site provides ample room for all key wastewater treatment and gas conditioning process blocks, proximity to the existing headworks for easy receipt of wastewater flows, proximity to the current and planned City storage ponds for storage of treated effluent, and favorable access to the Williams Northwest pipeline for the RNG interconnection. A proposed layout is provided in Figure 6. Page 258 of 297 39 Figure 6: Proposed Project Site A The project team recognizes, however, that the City is currently also planning for a large expansion of winter storage capacity in the vicinity of the PWRF, and thus ultimate land availability will be dependent on the final layout of that storage. As a result, the Developer would also be able to locate the project on Site B, which is a location to the north of the PWRF on land that is currently owned by the U.S. Bureau of Reclamation. A proposed layout for Site B is provided in Figure 7. Page 259 of 297 40 Figure 7: Proposed Project Site B 5.4.2 Pipeline and Interconnection The Developer has worked with Williams Northwest Pipeline to identify a suitable interconnection point for the project RNG, which will be at William’s Franklin PUD Interconnection adjacent to the Pasco City Gate and the Reimann Industrial Park. The two firms have also confirmed the availability of pipeline capacity, and Williams has provided a cost estimate for the pipeline and required interconnection. The development team and Williams have identified the preferred pipeline lateral pathway between the PWRF and the interconnection point, which is identified in Figure 8. BVF Reactors SBR System Page 260 of 297 41 Figure 8: Proposed Pipeline Lateral to Williams Northwest Pipeline The project team has also identified an interconnect optimization opportunity that may result in lower project costs and increased project benefits in the future. The team has signed a Letter of Intent (LOI) with Franklin PUD to lease their decommissioned peaking plant site located adjacent to the Williams Northwest Pipeline and the Pasco City Gate. The site is identified as the Franklin PUD Interconnection Site in Figure 9. This site would uniquely enable this proposed project to offer potentially lower interconnection costs through the utilization of Franklin PUD’s existing tap into the Williams Northwest Pipeline, as well as offer an opportunity to provide interconnection access via truck from other projects the team is working on in the region. If selected to develop the project, the team will immediately move to convert the LOI with Franklin PUD into a site lease. Page 261 of 297 42 Figure 9: Franklin PUD Interconnection Site 5.5 RNG OVERVIEW 5.5.1 Anticipated Production Based on Evoqua’s BVF reactor design and the Design Criteria provided in the RFP, the annual average biogas flow is anticipated to be 2,390,000 ft3/d in Option 1 and 2,036,000 ft3/d in Option 2 (at STP conditions).. Based on extensive prior experience with similar wastewater flows, the biogas is expected to have a composition of approximately 65% methane. As a result, expected RNG production is provided in Table 4. Table 4: Projected RNG Production RNG (Methane) Production* Option 1 Option 2 Annual Average (ft3/d) 1,553,500 1,323,400 Yearly Production (ft3)** 538,676,125 458,888,950 15-Year Production (ft3) 8,080,141,875 6,883,334,250 *Calculations are for production of 100% methane; pipeline specifications only require approximately 96% methane, and so actual delivered product volumes will be higher. **Assumes 95% Gas Conditioning System uptime; yearly production assumed to be consistent but will depend on Processor flows. These figures have not been used for financial modeling, pro forma development, or rate development purposes, and they will not be used to underwrite the facility, unless the City is Page 262 of 297 43 able to guarantee the influent Design Criteria (specifically, BOD), as they currently rely on future estimated, but unobserved, wastewater characteristics. While it is expected that these volumes can be met once the facility reaches full design capacity and criteria loads, more conservative estimates have been otherwise used. 5.5.2 Offtake Plan The RNG produced by the project is expected to be sold in the Voluntary Market under a long- term off-take agreement. There are two basic markets for RNG: the vehicle transportation market, which is known as the Compliance Market, and the Voluntary Market. The Compliance Market includes the Low Carbon Fuel Standard (LCFS) markets in states like California and Oregon (and soon, Washington) and Renewable Identification Numbers (RINs) under the federal Renewable Fuel Standard (RFS). The Compliance Market drives significant interest in RNG because it’s possible to receive very high values for the fuel in those markets if the right criteria are met. The two key criteria are: • Low Carbon Intensity (CI) scores: CI scores are measured based on the baseline emissions that a project will eliminate. The higher the baseline emissions, and the more comprehensive the reduction by the project, the lower the CI score. The lower the CI score, the more value the RNG has in the LCFS markets, and high value scores are highly negative (e.g. -200 to -400). • Cellulosic Content: RNG derived from a certain percentage of cellulosic content generates high value D3 RINs as compared to RNG that is low in cellulosic content, which generates low value D5 RINs. While Compliance Markets can often provide higher value, they can also fluctuate substantially, and prices for RNG sold into those markets cannot be locked-in over a long-term contract. The Voluntary Markets are primarily composed of large gas utilities and Corporations who are attempting to decarbonize their footprint. The values for RNG in these markets is somewhat lower than Compliance Markets but can be fixed for 10 to 20 year terms. These long-term, fixed-price contracts provide viable project finance tools, whereas the Compliance Markets generally do not. The wastewater in this project is not well-suited for the Compliance Market. Because it is not a municipal wastewater treatment plant, it will not meet the cellulosic requirements to qualify for D3 RINs, and therefore it would only receive D5 RINs. And for the LCFS markets, the project does not have a very low CI score—the score will be at best single-digits positive, but likely higher than that—and therefore it will generate little LCFS value. In addition to low value, high- CI fuels currently have limited demand in the LCFS markets, resulting in low marketability and higher fees paid to brokers, further eroding value. Finally, given the cost of this facility and its very long design life, the project lends itself to more traditional project finance, which is not well-suited for the Compliance Markets. As a result, this proposal recommends marketing the project’s RNG output into the Voluntary Markets. Page 263 of 297 44 The project team has completed many of these long-term agreements in the Voluntary Market and is in continual conversations with these buyers. The team has first-hand experience not only working with the important terms of a successful offtake in these markets, but also developed some of them for the first time, helping to pioneer the market. Some of this experience is outlined in the Reference Projects section of this proposal. If selected to pursue this project, the next step will be to provide a Term Sheet to the most active buyers in the Voluntary Market. Once a buyer is selected, that Term Sheet will be converted into Purchase and Sale Agreement as we move through final project design. From our continual discussion with these Buyers, we expect a range of values for the RNG output from this project to be from $15 to $20/MMBtu, with escalation over a 10-to-20-year term. We know of several buyers contracting today at higher values than this, but in order to take a conservative approach at this stage, this proposal is assuming a $15/MMBtu. The Developer expects to have a signed Term Sheet for the offtake within 3 months of completing contracts with the City. 5.6 EMISSIONS AND PERMITTING STRATEGY 5.6.1 Anticipated Emissions and Air Permitting Based on an emissions analysis of the proposed facility, the primary activity that will trigger an air permit are related to the flaring of biogas or RNG—any emissions from gas upgrading and other operations are nominal in relation to this activity. Thus, the anticipated emissions evaluation and air permitting strategy discussion will focus on emissions from flaring. The proposed project is designed to maximize the both the economic and environmental value of converting the raw biogas to RNG, and thus flaring will be held to a minimum. For this proposal, potential emissions were evaluated across four potential operational scenarios: 1. Low gas production, low flaring requirements 2. Low gas production, high flaring requirements 3. High gas production, low flaring requirements 4. High gas production, high flaring requirement Working with Trinity Consultants, a respected air permitting consulting firm the Developers have used for other RNG projects in the region, an analysis was performed on each scenario to determine the permitting thresholds that would be triggered. The primary focus is whether any of the emissions constituents at issue with this project—PM, PM10, PM2.5, SO2, NOx, VOC, CO, Pb, HAPs, CO2e—will trigger more-arduous Title V Permitting Thresholds. The evaluation concluded quite clearly that the facility will be below the Title V limits even in Scenario 4, which is the highest-emissions scenario developed. The conclusion, therefore, is that the project will only require a Notice of Construction (NOC) air permit, which the development team is experienced with obtaining from the Washington Department of Ecology’s Eastern Regional Office. Page 264 of 297 45 5.6.2 Other Permits The other primary permit required by the proposed facility will be a State Waste Discharge permit with the Department of Ecology. This permit has historically been obtained and maintained by the City, and the Developer’s understanding is that the City has already begun the process to update the PWRF facility plan and permit for the project with Ecology. This proposal recommends that the City and its consultants continue to manage this process. Post- award, the project team would meet with the City and it is consultants to develop a final basis of design. Based on that work, the project team would make any updates necessary to the design that has been developed to date and be in a position to provide the City with any inputs needed for its Facility Plan and Permit submissions to Ecology. The project team anticipates being able to provide full support to the City in a timely matter and does not expect any issues with the overall project schedule, as discussed below. Typical, more-minor building, right-of-way, easement, fire protection and other permits and approvals will be needed to complete prior to breaking ground. In the project team’s experience with Franklin County, these permits can be obtained in 1-4 weeks and will not drive any aspects of the project’s schedule. 5.6.3 Permit Schedule The Notice of Construction (NOC) air permit and the Solid Was Discharge permit will be pursued and completed on parallel paths. The Developer will begin preparing its NOC permit upon RFP award from the City. Working with Trinity Consultants, the NOC permit is expected to take six weeks to model and prepare submittal. Once submitted, Ecology has 30 days to review the application and deem it complete. Once submitted and deemed complete, the NOC air permit currently takes 8-12 weeks to receive approval from the Washington Department of Ecology’s Eastern Regional Office. As a result, the Developer expects the NOC air permit to be received within 6 months of RFP award. The Developer currently anticipates it will take the City and its consultants 12 weeks to complete an updated Facility Plan and associated permit applications once they have received detailed facility design data from the Developer. Based on the extensive work that has been completed to date by the Developer and Evoqua, it’s expected that the updated facility design data can be provided to the City within 4 weeks of RFP award, but this is dependent on the finalization of the design basis with the City and the Processors. Once the Facility Plan and applications are submitted to Ecology, it is expected to take approximately 6 weeks for the Department of Ecology to review and issue the new Discharge permit. The timelines of the two primary permits are aligned and will meet the overall project schedule provided in this RFP, enabling construction to be commenced on time for the necessary project delivery date to be met. Page 265 of 297 46 5 .7 FINANCING PLAN 5.7.1 Financing Structure The expectation is that the project will be financed with a combination of tax-exempt and taxable private activity bonds in order to access lower cost financing. The Developer is working with financial and legal advisors to develop the most cost-advantageous structure. Based on the financial assumptions in this proposal, the Developer’s advisors believe that the project can achieve an 80% loan-to-value ratio on the project. Its expected that the project will qualify for $10-20 million of tax-exempt bonds based on the proposed contractual relationship with the City and the underlying wastewater treatment attributes of the Project. Multiple factors will influence the final amount of tax-exempt financing available, including whether or not an allocation is available with the State of Washington. For purposes of this bid, the Developer has assumed a loan tenor of 30 years (28 years of operation plus two years of construction and shake-out) based on a 30-year agreement with the City, but other terms may be considered. The remaining capital will be provided by Burnham through an equity investment. Burnham will use a combination of current and new investors to finance the remaining 20% of capital required for the project. Based on the expected equity returns and conversations to date with Burnham’s existing investors, potential new investors and financial advisors, Burnham expects to be able to finance the full equity commitment amount, conditioned on a strong contract with the City. 5.7.2 Incentives and Grants The Development team believes the proposed project is well-positioned to receive substantial grant funding, which, based on the project structure, would result in a direct decrease in wastewater treatment costs for the City and Processors. The Development team will support and help lead efforts to secure funding with Washington’s federal congressional delegation and with the State of Washington. In addition to seeking out grants for the proposed project, the Developers anticipate pursing a Washington State Department of Commerce Clean Energy Fund RD&D grant to develop a pilot demonstration for the conversion of the project’s sludge to biochar. 5.8 STRUCTURE 5.8.1 Ownership Structure The indicative term sheet provided in Appendix B expects that the Facility will be owned by Burnham SEV Pasco LLC, a Washington-based wholly owned subsidiary of Burnham (“ProjectCo”). ProjectCo will design, construct, finance, own and operate the Facility. Page 266 of 297 47 Relationship with the City will be based on an arms-length contract to treat the wastewater delivered to the Facility by the City and return the treated effluent wastewater at the required contractual specifications. To reduce cost of capital (financing costs) and ensure Burnham is fully accounting for the City’s optimal financial structure, upon selection Burnham will work with legal and financial advisors to evaluate alternative structures that may result in lower total costs to the City and ultimately the processor. For instance, it may be advantageous for the City to own the assets and grant ProjectCo a concession to design, construct, finance and operate without owning the underlying assets. 5.8.2 Contractual Requirements An Indicative Term Sheet outlining the key contractual requirements being proposed by Burnham has been attached as Appendix B, per the RFP instructions. 5.9 PROJECT CAPITAL COST The total treatment capital costs estimates are provided in Table 5. Table 5: Estimated Project Capital Costs Scope Option 1 Option 2 IMCO Wastewater Treatment Capex $73,000,000 $65,000,000 Non-IMCO Capital Costs (Investigations & Permits, landscaping, pavement, roads, site prep, fire protection, owners engineering, spare parts, commissioning, screening, insurance and performance bonds) $5,000,000 $5,000,000 Contingency (10%) $7,800,000 $7,000,000 Total Capital Costs $85,800,000 $77,000,000 Exclusions: • Existing Plant Demolition • Sales Tax • Utilities • Property Taxes • Excludes all CAPEX and OPEX associated with RNG equipment for gas conditioning and transportation Page 267 of 297 48 6. PROJECT DEVELOPMENT SCHEDULE 6.1 DEVELOPMENT SCHEDULE A Project schedule is provided in Figure 1. The schedule is driven by the Trigger events, with the entire schedule commencing at RFP selection. Target dates are provided, along with Longstop Dates that provide Burnham and the City with contractual remedies that are either specified in the Term Sheet provided in Exhibit B or to be negotiated as part of the Water Treatment Agreement between Burnham and the City. Potential pre-construction schedule improvements may be available depending on Burnham and City’s contracting terms and timing. Figure 10: Project Schedule 6.2 SCHEDULE DELAY MITIGANTS Several options have been developed to address potential schedule delays. First, a Longstop Date has been proposed in the indicative Term Sheet in Appendix B should the Project not reach start-up by a certain date. Second, the Development Team is aware that schedule is a critical driver for the City and start- up must be achieved by a certain date. In the event that the Facility is incapable of accepting the necessary amount of wastewater by that expected start date, the Development Team has considered a number of options that may be available: • Utilize expanded winter storage capacity, which should be online and empty during the period at which the delay would possibly be taking place (Spring/Summer), to temporarily store wastewater prior to treatment in the Facility once it is online. • Utilize a temporary DAF system to pretreat wastewater prior to sending it to the municipal system or land applying for a period of time. Target Development Schedule Target Date from Trigger Longstop Date from Trigger Month from StartTargetLongstop01234567 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 RFP Selection Execute Water Treatment Agrmt. (WTA)RFP Selection 1 Month 3 Months Sign RNG Purchase Agreement Execute WTA 3 Months 6 Months Finalize Basis of Design (BoD)RFP Selection 1 Month 2 Months Receive Permits Final BoD 6 Months 8 Months Complete Financing Execute WTA 6 Months 9 Months Start Construction Execute WTA 6 Months 9 Months Complete Construction Start. Const.21 Months 27 Months Start Reactor 1 Commissioning Start. Const.15 Months 18 Months ACTIVITY TRIGGER Page 268 of 297 49 • A combination of the above strategies, with streams split to different locations if required. Each of the above options requires further analysis with the input of the City and its consultants. If selected to win this RFP, the Development Team would propose quickly standing up a Schedule Delay Mitigation team to evaluate these options and provide the Developer, the City, and the Processors with recommendations. Page 269 of 297 50 7. COMPENSATION AND RATE STRUCTURE 7.1 RNG PROPOSAL 7.1.1 Methodology and Value This proposal values the Project as one company with two revenue streams: RNG and Wastewater Treatment. The RNG will be sold to a third-party and Wastewater Treatment services will be provided to the City. Wastewater costs are significantly reduced by the presence of RNG. Assuming a fixed total cost of capital of ~10%, we estimate that approximately 80% of the net value from the RNG assets will be returned to the City and the Processors via a reduced rate for Wastewater Treatment Services. The Developer will provide clear, agreed-upon RNG accounting to the City on a regular basis so that the City can allocate those cost reductions directly back to the Processors using the methodology it prefers (e.g. based upon BOD load). Ultimately, our proposal is based on two principles: • The City pays for the cost of wastewater treatment (which the City can pass on to the Processors) via a long-term, fixed price contract with the City; Burnham will accept many of the risks associated with wastewater treatment (such as providing a guaranteed project delivery date), but will pass other costs (such as electricity) through directly to the City in order to save cost and double charging. The attached proposal reflects this principle. • The City does not pay any cost associated with the RNG – including capital costs, gas transportation cost or RNG operating cost; Burnham will be assume risk associated with these assets; the City and Processors benefit as the total wastewater treatment rate charged on is lowered by the amount of RNG revenue that is returned back to the City and Processors. 7.2 TREATMENT RATES 7.2.1 City Rate The proposed treatment rate to be provided to the City is $6,406/MG for Option 1, and $8,300/MG for Option 2. A breakdown of the rate development along with a comparison to prior estimated rates from previous 30% design efforts for the PWRF are shown in Table 6. Page 270 of 297 51 Table 6: Rate Breakdown and Comparison to Prior Studies Rate Breakdown Option 1 Option 2 Proposed Cost Per MG $5,500 $7,000 Total MG per annum 2,700 1,800 Burnham Wastewater Treatment Costs $ 14,850,000 $ 12,600,000 +Electric $ 414,010 $338,172 +Consumables $551,196 $ 472,903 +Existing Debt Service $1,480,000 $1,480,000 Total Processing Costs $17,295,206 $14,891,075 Total Processing Costs ($/MG) $6,406 $8,300 Prior 30% Design $/MG $7,183 $8,137 $ Change -10.8% 2.0% 7.2.2 Treatment Rate Development for Processors The structure provided in this RFP recommends that Burnham and the City contract for the treatment of wastewater based upon an agreed upon rate, with a pass-through of certain operating costs. Under this structure, Burnham would not specifically be responsible for charging the Processors for their use of the Facility, as that role would fall to the City. The rate provided to the City, though, should be representative of the average rate Processors will pay, but individual rates would be subject to more complex rate development methodologies, as is discussed below. Burnham will provide support to the City in the development of the Processor rate structure, though, and recommends the parties work with FCS Consultants to develop a well-supported, commonly used methodology. In general, Burnham expects that the City rate should: • Charge proportionally based on the flow, BOD, and TN for each Processor. • Return RNG revenue to each Processor proportional to their BOD levels. • Charge new customers and existing customers that expand their water flows (proportional to the amount of their expanded flows over existing flows) a higher proportion of new capital costs than existing customers who maintain or reduce their flows. As the RFP provides no visibility into existing costs currently being charged to the Processors or new costs for expanded storage capacity, Burnham has not taken those into account in any of the analysis or figures provided in this Proposal. Page 271 of 297 52 8. ATTESTATION I, CHRISTOPHER (CHRIS) TYNAN, hereby attest that: 1. I am the CEO of Burnham RNG LLC; 2. As such, I have authority to make the attached Proposal; 3. The contents of the Proposal are truthful and accurate; and 4. This Proposal shall remain valid for 180 days from the date hereof. BURNHAM RNG LLC By: Name: Christopher Tynan Its: Chief Executive Officer & Managing Member Date: April 22, 2022 Page 272 of 297 54 APPENDIX B: INDICATIVE TERM SHEET FOR CONTRACT BETWEEN CITY AND DEVELOPER Page 273 of 297 INDICATIVE TERM SHEET CITY OF PASCO WASTEWATER TREATMENT PROJECT BURNHAM RNG LLC April 22, 2022 Page 274 of 297 PROPOSAL The following is intended for discussion purposes only. The terms set out in this Indicative Term Sheet are a summary of key terms only and merely set out certain basic points of business understanding upon which the parties may proceed. It does not constitute an offer capable of acceptance or a commitment of any kind to arrange or underwrite any form of equity investment, nor do any of the indicative terms set out herein create any legally binding obligations on the parties hereto (except the parties acknowledge that the Costs, Confidentiality and Governing Law provisions of this Indicative Term Sheet shall be fully binding on the parties from the date hereof and shall remain in full force and effect whether or not the “Transaction Documents” are signed by all the parties thereto). This Indicative Term Sheet is, at all times, subject to, among other things, all necessary internal approvals of the City of Pasco (the “City”) and Burnham RNG LLC (“Burnham”), including credit approvals, satisfactory due diligence and completed documentation, as applicable. The indicative terms and conditions may be modified or supplemented by Burnham at any time and from time to time during the course of its due diligence and credit approval process, or as a result of market conditions or otherwise, provided that any changes to the indicative terms and conditions must be agreed upon and accepted by the City. A summary of the key features of the proposed agreement is as follows. All bolded terms are defined below: Key Parties City City of Pasco, Washington Project Company Burnham SEV Pasco, LLC, a special purpose entity to be formed in the State of Washington for purposes of owning the Project (defined below). Operator Evoqua or such other qualified operator as determined by Project Company EPC IMCO or such other qualified engineering, procurement and construction firm with experience building wastewater treatment and RNG facilities to be selected by Project Company Gas Offtaker Any lender-approved third-party with whom Project Company enters into an agreement to sell biogas produced by the Facility (defined below) in market terms (whether through a NAESB or other long-term form agreement) from time to time (each such agreement a “Gas Offtake Agreement”). Transaction Summary Transaction Overview City and Project Company will enter into an agreement pursuant to which Project Company will finance, build and operate during the Term (defined below) a wastewater treatment facility (the “Facility”) which will additionally utilize biogas from the influent water to produce renewable natural gas (“RNG”) (the treatment of water and production of RNG together, the “Project”). Page 275 of 297 Facility Ownership Ownership of Facility will be determined by the City and Project Company in good faith in order to minimize cost of financing for the Project, including with the potential use of tax-exempt financing. It is anticipated that Project Company would own the Facility for tax purposes during the Term with any residual period thereafter reverting ownership to the City. Project Company Primary Roles & Responsibilities Project Company will: • Retain EPC and such other services providers as needed to design, develop and construct the Facility and will manage all aspects of EPC contract; • Hold and operate the Project during the Term; • enter into the O&M Agreement and Management Services Agreement, appointing Operator as exclusive operator with respect to the Project, and Burnham to provide other administration and management services to Project Company; • Enter into an agreement (as defined by the Parties related to and regarding ownership) with the City to treat influent wastewater with agreed upon specifications and deliver effluent treated water with agreed upon specifications during the Term (“Wastewater Treatment Agreement”); • enter into term Gas Offtake agreements to sell RNG to third-parties; • arrange for the financing of the Project from whatever source but subject to the financing assumptions below; and • enter into various third-party agreements as further described in this Term Sheet. Operator Operator will: • act as O&M for the Project; • provide Project Company with such additional management services as may be necessary to adequately manage the Project; City City will: • enter into and comply with Wastewater Treatment Agreement with Project Company; • procure and/or provide the site (the “Site”), including any and all easements, right-of-ways and all associated costs including property taxes, lease payments (other than as contemplated in Agreement); • obtain all necessary permits related to the Facility other than those agreed to by Parties are to be procured by Project Company (“Project Permits”); and • provide any and all assistance reasonably requested by Project Company in connection with financing of the Project. Wastewater Treatment Agreement Terms Parties City and Project Company Page 276 of 297 Purpose Upon COD, City will provide the Minimum Volume Obligation of wastewater at Influent Specifications at the influent delivery point for Project Company (“Influent Delivery Point”) to treat such water to the Effluent Specifications and return. Project Company will finance, construct, [own] and operate a Facility that will take wastewater from City at Influent Delivery Point, treat water to Effluent Specifications and return to Customer at effluent deliver point (“Effluent Delivery Point”). Minimum Volume Obligation [2,700 | 1,800]1 million gallons per year Term Thirty (30) years from COD with two five (5) year extensions. Effective Date Date Parties execute Agreement. COD Project Company expects to receive all Project Permits, close financing, and commence construction (“NTP”) within six (6) months of the Effective Date, but in no event later than nine (9) months from the Effective Date (the “Longstop NTP Date”). Project Company expects COD to occur within twenty-one (21) months from the Effective Date, but in no event later than twenty-seven (27) months from the Effective Date (the “COD Longstop Date”). Consideration City shall pay Project Company a fee equal to [$5,500 | $7,000]2 per million gallons (“Treatment Fee”) plus certain pass-through costs (the “Pass- Through Costs”) plus additional cost incurred to treat water due to wastewater not meeting Influent Specifications, on a “Take or Pay basis”. The Treatment Fee will adjust annually to reflect year-over-year changes in the Consumer Price Index with the first annual adjustment to take place on April 22, 2023. For purposes hereof, Pass-Through Costs include, and will be subject to a margin cost of 10% of actual cost: • Electricity • Consumables • Major Maintenance Expenses • Additional City / PWRF existing expenses not expected to be part of the Facility • The above expenses will only be a Pass-Through cost if associated with the Water Treatment; costs associated with RNG upgrading and transportation will not be Pass-Through Costs Treatment Fee Assumptions The Treatment Fee is based on the following assumptions: • Total Facility Capital Cost of [$85,800,000 | $77,000,000 ], as follows: o [$73,000,000 | $65,000,000 ] for IMCO wastewater treatment scope 1 For purposes of this term sheet, bracketed numbers will include two options = [Option 1 from the Proposal, With Lamb Weston | Option 2 from the Proposal Without Lamb Weston] 2 Please note that our colleagues at Evoqua have spent more time engineering the “With Lamb Weston” case; consequently we expect there may be additional cost savings in the “No Lamb Weston” case that we have not finalized. The formula provided will provide a mechanism for reduced cost for City and Processors if capital costs are lower than currently estimated. Page 277 of 297 o [$5,000,000] in non-IMCO capital costs (including Investigations & Permits, landscaping, pavement, roads, site prep, fire protection, owners engineering, spare parts, commissioning, screening, insurance and performance bonds) o 10% Contingency: [$7,800,000 | $7,000,000] • If Total Facility Capital Cost increases or decreases, Treatment Fee shall increase or decrease accordingly by [$40 | $60] per million gallons for every $1,000,000 of additional or reduced Total Facility Capital Costs, as applicable • Exclusions: o Existing Plant Demolition o Sales Tax o Utilities o Property Taxes o Any increased to Total Facility Capital Cost resulting for any Exclusions increasing above zero shall be treated as increased in Total Facility Capital Cost and result in [$40 | $60] per million gallons increase in Treatment Fee • Excludes all CAPEX and OPEX associated with RNG equipment for gas conditioning and transportation. • Financing Assumptions (below) will be met. o Any increase / decrease of 10 basis point on interest rate will increase / decrease of Treatment Fee by [$35 | $35] per million gallons. o Any change on LTV of 1% will increase / decrease Treatment Fee by [$85 | $85] per million gallons. • Operating Costs o Includes all labor, routine R&M, fixed O&M fees, insurance and natural gas purchases o Includes a $1,100,000 annual allowance for sludge disposal; actual costs above or below this will result in increase/decrease in Treatment Fee. o Additional costs not listed above will result in an increase in Treatment Fee Financing Assumptions Combination of public and private project finance with following terms: • No less than 20 year amortization • Interest Rate of 5.0%, compounded semi-annually • Loan to Value ratio of 80% • Market Standard Financial and Other Loan Covenants LDs If Facility is not completed and operating by COD Longstop Date as a result of anything other than delays in obtaining Permits, price reduction of [*] dollars for every [30] days delayed up to [90] days delayed, at which point it shall be Event of Default (as set forth below). Delays in obtaining Project Company Permits or financing resulting in NTP not being met by NTP Longstop Date shall result in an Event of Default. Page 278 of 297 Influent Specifications Wastewater delivered at Influent Delivery Point shall measure [*], or such other levels as may be agreed to by the Parties in connection with the final approved Facility design. Effluent Specifications Treated Water delivered at Effluent Delivery Point shall measure [*], or such other levels as may be agreed to by the Parties in connection with final approved Facility design; provided, that if Influent Specifications are not met, Project Company shall use commercially reasonable efforts to meet Effluent Specifications and shall pass increased cost in treating such wastewater to City. Any wastewater with [*] or above may not be treated to Effluent Specifications and Project Company shall be released of any obligation to treat deliver same at Effluent Specifications at Effluent Delivery Point Measuring Equipment All measuring equipment at Influent Delivery Point and Effluent Delivery Point shall be owned and operated by Project Company and may be inspected by City, from time to time during regular business hours and with reasonable prior notice without interrupting normal business operations. Title and Risk All wastewater shall at all times by property of the City. Risk shall pass to Project Company on a temporary basis during treatment from Influent Delivery Point to Effluent Delivery Point. RNG All RNG generated from wastewater treatment shall be sole property of Project Company. Any cost associated with biogas upgrading and RNG transportation and marketing shall be the sole responsibility of Project Company. Any revenue generated from Gas Offtake shall be solely of Project Company. Insurance Each Party shall carry customary insurance and such other additional insurance as may be required by lenders and shall name each other as additional insured (and such other parties as may be required under any financing documents). Indemnification Each Party shall indemnify and hold harmless the other from any damages (which shall include claims, demands, lawsuits, penalties, fees, losses, etc… (as are customary in transactions of this nature) for any breach in the Agreement, fraud, wilful misconduct and gross negligence. Additionally, City shall fully indemnify Project Company (a) for any damages suffered (including acceleration of debt and interest and penalties related therewith) resulting from COD not being met by the COD Longstop Date, solely attributable to the necessary permits not being obtained on a timely basis for anything other than reasons solely attributable to Project Company and (b) for any damages resulting from damages from claims resulting from the treated water once delivered to the Effluent Delivery Point and accepted by the City. Page 279 of 297 Notwithstanding the foregoing, neither Party shall be responsible for consequential damages (as typically defined), except for those specifically set forth herein. Events of Default Events of default usual and customary for transactions of this nature, including, but not limited to (and in each case, where appropriate, subject to cure periods and materiality thresholds to be agreed): • failure to pay; • breach of any covenant, warranty, representation or undertaking; • insolvency, winding up or analogous; • missing Influent Specifications on a consistent basis above [*]; • missing Effluent Specifications on a consistent basis above [*], except where as a result of missing Influent Specifications; • not reaching COD by the Longstop Date. Representations and Warranties Typical for agreements of this nature. Governing law and dispute resolution Laws of State of Washington. Dispute Resolution shall be by binding arbitration to be mutually agreed in definitive transactions agreements. Termination • by mutual agreement of the Parties; • by non-defaulting party in the case of an Event of Default; • by Force Majeure (as typically defined) that remains in effect for 180 continuous days; and • any other termination rights as typical for agreements of this nature. Costs The parties will be responsible for paying their own legal and other costs incurred in obtaining opinions, reviewing the transaction documents or otherwise assessing the transactions contemplated herein. No legal or accounting opinion for any of the contemplated transactions will be provided by Burnham or its advisers. Conditions Precedent The Transactions Contemplated are subject to: • satisfactory due diligence by Burnham including without limitation, with respect to the Site, and feasibility of project; • negotiation, execution and delivery of mutually agreeable definitive transaction documents; and • receipt of all required transaction approvals (including without limitation, City’s and Burnham’s internal approvals), legal and regulatory approvals and satisfactory review of structuring considerations relating to tax and bank regulatory matters. Governing Law This Indicative Term Sheet and any non-contractual obligations arising out of or in connection herewith, shall be construed in accordance with, and governed by, the laws of Washington. Page 280 of 297 55 APPENDIX C: PROCESS FLOW DIAGRAMS Page 281 of 297 PARAMETERAVG. ANNUAL DAILY FLOW (MGD)MAX. MONTH DAY FLOW (MGD)BOD, AVG. (mg/l)BOD, AVG. DAILY LOAD (lb/d)BOD, LOAD MAX. MONTH (lb/d)COD, AVG. (mg/l)*COD, AVG. DAILY LOAD (lb/d)*COD, LOAD MAX. MONTH (lb/d)*TSS, AVG. DAILY (mg/l)TSS, AVG. LOAD (lb/d)TN, AVG. (mg/l)TN, AVG. DAILY LOAD (lb/d)TN LOAD, MAX. MONTH (lb/d)pHTEMP. (°F)A7.3112.182,800170,800337,1005,600341,600674,2001,710104,2001005,9909,350- - -74*B7.3112.1828013,63024,34056027,30048,68035021,340905,4909,1806.5 - 7.585 - 98BIOGAS TOUPGRADE/CLEANINGTO PIPELINEENCLOSEDBIOGAS FLARESPILOT GAS(BY OTHERS)BIOGAS BLOWERS(5 @ 1,200 scfm)BIOGAS FLOW, annual avg. (ft3/d)BIOGAS FLOW, peak month (ft3/d)CH4 (%)ESTIMATED H2S (ppm)BIOGAS ENERGY, annual avg. (MMBtu/d)BIOGAS ENERGY, peak month (MMBtu/d)*ASSUMED2,390,0004,700,000651,800*1,5503,070WASTE SLUDGE TO DISPOSALADI-BVF®REACTOR #2(40 MG)FLOW, AVG. (MG/y)SOLIDS (%)27.64ADI-BVF®REACTOR #1(40 MG)BEFFLUENT TOSBR SYSTEM(SEE FIG.2)SREC RANSVFDVFDSREC RANSVFDVFD VENTVENTPITPITMg(OH)2TANK(10,000 gal)LITMIXERS(2 @ 6 hp)MIXERS(2 @ 10 hp)RECYCLE PUMPS(2 @ 2.500 gpm)RECYCLE PUMPS(2 @ 2,500 gpm)FMLITLITVFDVFDVFDVFDC7.31- - -< 100- - -6,100< 200< 12,190- - -< 1006,01028**2,320- - -6 - 9- - -FMREACTOR FEEDPUMPS(3 @ 4,700 gpm)BVF BYPASSTO SBR(SEE FIG.2)FMVFDCOVEREDEQ TANK(2.0 MG)BYPASS PUMPS(2 @ 1,000 gpm)VFDVFDWAS FROMSBR(SEE FIG.2)BIOFILTERMIXERS(3 @ 40 hp)VFDVFDHXHXBOILER#1BOILER#2NATURAL GAS(BY OTHERS)RAW WASTEWATER(PUMPED BY OTHERS)ROTARYDRUMSCREENSA*ASSUMED** BVF REACTOR EFFLUENT FLOWS > 9.6 MGD TOBYPASS SBR TO HOLDING PONDSVFDGRIT BINGRITVORTEXVFDVFDVFDINFLUENTSTATION(3 @ 5,500gpm)BYPASS TOHOLDING PONDS(BY OTHERS)G:\00486975 - PASCO CITY WA-PWRF BVF+SBR\PROP01\FIGURE 1 – PFD – PROCESS FLOW DIAGRAM.DWGLast Saved By:SARAH.TAYLORPlotted By:Date Plotted:TAYLOR, SARAH L18/04/2022 14:34 PRELIMINARYNOT TO SCALES.TAYLORS.ZELAYA0PROCESS FLOW DIAGRAM - OPTION 1FIGURE 100486975BATTERY LIMITS2022-04-18BAR = 1" AT PLOT SCALESTD:11X17_B 0616 Border.dwg DATEDATEDATECHECKERDESIGNERCLIENTTITLEDATESCALE:REF:PROJECTREVDRAWINGCODESHEETCOMPANY CONFIDENTIAL INFORMATIONTHIS DOCUMENT AND ALL INFORMATION CONTAINEDHEREIN, INCLUDING THE DESIGN CONCEPTS, ARE THEPROPERTY OF EVOQUA AND/OR ITS AFFILIATES AND ARESUBMITTED IN CONFIDENCE. THEY MAY BE USED ONLY FORTHE EXPRESS PURPOSE FOR WHICH THEY ARE PROVIDEDAND MUST NOT BE DISCLOSED, REPRODUCED, LOANED ORUSED IN ANY OTHER MANNER WITHOUT THE EXPRESSWRITTEN CONSENT OF EVOQUA. ALL PATENT RIGHTS ARERESERVED. THIS DOCUMENT IS PROTECTED UNDERAPPLICABLE COPYRIGHT LAWS. UPON DEMAND OFEVOQUA, THIS DOCUMENT, ALONG WITH ALL COPIES ANDEXTRACTS, AND ALL RELATED NOTES AND ANALYSES MUSTBE RETURNED TO EVOQUA OR DESTROYED, ASINSTRUCTED BY EVOQUA. ACCEPTANCE OF THE DELIVERYOF THIS DOCUMENT CONSTITUTES AGREEMENT TO THESETERMS.ABCD87654321OFENGINEERMANAGERREVDESCRIPTION CHKDDATE DWNAPVD ECNADI SYSTEMS370 WILSEY ROAD FREDERICTON, NB, CANADA+1(506) 452-7307WASTEWATER TREATMENT SYSTEM FOR PASCO PWRF FACILITYPage 282 of 297 SBR #1(2.4 MG)SBR #2(2.4 MG)SBR #3(2.4 MG)SBR #4(2.4 MG)SBR AERATIONBLOWERS(4 @ 300 hp)ANAEROBICEFFLUENT(SEE FIG. 1)FMEFFLUENT TODISCHARGEDO/TLITDO/TLITDO/TLITDO/TLITWAS PUMPS(2 @ 600 gpm)CSBR AERATIONBLOWERS(4 @ 300 hp)FLOATING MIXERS(4 @ 75 hp)BVF BYPASS(SEE FIG.1)FMVFDVFDVFDVFDVFDVFDVFDVFDVFDVFDTO BVFREACTORS(SEE FIG.1)G:\00486975 - PASCO CITY WA-PWRF BVF+SBR\PROP01\FIGURE 3 – PFD – PROCESS FLOW DIAGRAM.DWGLast Saved By:SARAH.TAYLORPlotted By:Date Plotted:TAYLOR, SARAH L18/04/2022 14:35 PRELIMINARYNOT TO SCALE0FIGURE 3BATTERY LIMITSBAR = 1" AT PLOT SCALESTD:11X17_B 0616 Border.dwg DATEDATEDATECHECKERDESIGNERCLIENTTITLEDATESCALE:REF:PROJECTREVDRAWINGCODESHEETCOMPANY CONFIDENTIAL INFORMATIONTHIS DOCUMENT AND ALL INFORMATION CONTAINEDHEREIN, INCLUDING THE DESIGN CONCEPTS, ARE THEPROPERTY OF EVOQUA AND/OR ITS AFFILIATES AND ARESUBMITTED IN CONFIDENCE. THEY MAY BE USED ONLY FORTHE EXPRESS PURPOSE FOR WHICH THEY ARE PROVIDEDAND MUST NOT BE DISCLOSED, REPRODUCED, LOANED ORUSED IN ANY OTHER MANNER WITHOUT THE EXPRESSWRITTEN CONSENT OF EVOQUA. ALL PATENT RIGHTS ARERESERVED. THIS DOCUMENT IS PROTECTED UNDERAPPLICABLE COPYRIGHT LAWS. UPON DEMAND OFEVOQUA, THIS DOCUMENT, ALONG WITH ALL COPIES ANDEXTRACTS, AND ALL RELATED NOTES AND ANALYSES MUSTBE RETURNED TO EVOQUA OR DESTROYED, ASINSTRUCTED BY EVOQUA. ACCEPTANCE OF THE DELIVERYOF THIS DOCUMENT CONSTITUTES AGREEMENT TO THESETERMS.ABCD87654321OFENGINEERMANAGERREVDESCRIPTION CHKDDATE DWNAPVD ECNADI SYSTEMS370 WILSEY ROAD FREDERICTON, NB, CANADA+1(506) 452-7307WASTEWATER TREATMENT SYSTEM FOR PASCO PWRF FACILITYS.TAYLORS.ZELAYAPROCESS FLOW DIAGRAM - OPTION 1004869752022-04-18Page 283 of 297 PARAMETERAVG. ANNUAL DAILY FLOW (MGD)MAX. MONTH DAY FLOW (MGD)BOD, AVG. (mg/l)BOD, AVG. DAILY LOAD (lb/d)BOD, LOAD MAX. MONTH (lb/d)COD, AVG. (mg/l)*COD, AVG. DAILY LOAD (lb/d)*COD, LOAD MAX. MONTH (lb/d)*TSS, AVG. DAILY (mg/l)TSS, AVG. LOAD (lb/d)TN, AVG. (mg/l)TN, AVG. DAILY LOAD (lb/d)TN LOAD, MAX. MONTH (lb/d)pHTEMP. (°F)A4.899.213,560145,400285,1007,120291,000570,2001,76083,520963,8807,370- - -74*B4.899.2136014,54027,34072029,10054,68035014,270863,5106,6306.5 - 7.585 - 98BIOGAS TOUPGRADE/CLEANINGTO PIPELINEENCLOSEDBIOGAS FLARESPILOT GAS(BY OTHERS)BIOGAS BLOWERS(5 @ 1,020 scfm)BIOGAS FLOW, annual avg. (ft3/d)BIOGAS FLOW, peak month (ft3/d)CH4 (%)ESTIMATED H2S (ppm)BIOGAS ENERGY, annual avg. (MMBtu/d)BIOGAS ENERGY, peak month (MMBtu/d)*ASSUMED2,036,0003,975,000651,800*1,3202,580WASTE SLUDGE TO DISPOSALADI-BVF®REACTOR #2(33 MG)FLOW, AVG. (MG/y)SOLIDS (%)22.84ADI-BVF®REACTOR #1(33 MG)BEFFLUENT TOSBR SYSTEM(SEE FIG.2)SREC RANSVFDVFDSREC RANSVFDVFD VENTVENTPITPITMg(OH)2TANK(10,000 gal)LITMIXERS(2 @ 6 hp)MIXERS(2 @ 6 hp)RECYCLE PUMPS(2 @ 1,900 gpm)RECYCLE PUMPS(2 @ 1,900 gpm)FMLITLITVFDVFDVFDVFDC4- - -< 100< 3,340- - -< 200< 6,670- - -< 100< 3,34025**< 830 - - -6 - 9- - -FMREACTOR FEEDPUMPS(3 @ 3,600 gpm)BVF BYPASSTO SBR(SEE FIG.2)FMVFDCOVEREDEQ TANK(1.6 MG)BYPASS PUMPS(2 @ 800 gpm)VFDVFDWAS FROMSBR(SEE FIG.2)BIOFILTERMIXERS(3 @ 30 hp)VFDVFDHXHXBOILER#1BOILER#2NATURAL GAS(BY OTHERS)RAW WASTEWATER(PUMPED BY OTHERS)ROTARYDRUMSCREENSA*ASSUMED** BVF REACTOR EFFLUENT FLOWS > 4 MGD TO BYPASS SBR TO HOLDING PONDS***AVERAGED OVER THE YEARVFDGRIT BINGRITVORTEXVFDVFDVFDINFLUENTSTATION(3 @ 4,200gpm)BYPASS TOHOLDING PONDS(BY OTHERS)G:\00486975 - PASCO CITY WA-PWRF BVF+SBR\PROP01\FIGURE 2 – PFD – PROCESS FLOW DIAGRAM.DWGLast Saved By:SARAH.TAYLORPlotted By:Date Plotted:TAYLOR, SARAH L18/04/2022 14:39 PRELIMINARYNOT TO SCALE0FIGURE 2BATTERY LIMITSBAR = 1" AT PLOT SCALESTD:11X17_B 0616 Border.dwg DATEDATEDATECHECKERDESIGNERCLIENTTITLEDATESCALE:REF:PROJECTREVDRAWINGCODESHEETCOMPANY CONFIDENTIAL INFORMATIONTHIS DOCUMENT AND ALL INFORMATION CONTAINEDHEREIN, INCLUDING THE DESIGN CONCEPTS, ARE THEPROPERTY OF EVOQUA AND/OR ITS AFFILIATES AND ARESUBMITTED IN CONFIDENCE. THEY MAY BE USED ONLY FORTHE EXPRESS PURPOSE FOR WHICH THEY ARE PROVIDEDAND MUST NOT BE DISCLOSED, REPRODUCED, LOANED ORUSED IN ANY OTHER MANNER WITHOUT THE EXPRESSWRITTEN CONSENT OF EVOQUA. ALL PATENT RIGHTS ARERESERVED. THIS DOCUMENT IS PROTECTED UNDERAPPLICABLE COPYRIGHT LAWS. UPON DEMAND OFEVOQUA, THIS DOCUMENT, ALONG WITH ALL COPIES ANDEXTRACTS, AND ALL RELATED NOTES AND ANALYSES MUSTBE RETURNED TO EVOQUA OR DESTROYED, ASINSTRUCTED BY EVOQUA. ACCEPTANCE OF THE DELIVERYOF THIS DOCUMENT CONSTITUTES AGREEMENT TO THESETERMS.ABCD87654321OFENGINEERMANAGERREVDESCRIPTION CHKDDATE DWNAPVD ECNADI SYSTEMS370 WILSEY ROAD FREDERICTON, NB, CANADA+1(506) 452-7307WASTEWATER TREATMENT SYSTEM FOR PASCO PWRF FACILITYS.TAYLORS.ZELAYAPROCESS FLOW DIAGRAM - OPTION 2004869752022-04-18Page 284 of 297 SBR #1(2 MG)SBR #2(2 MG)SBR AERATIONBLOWERS(4 @ 250 hp)ANAEROBICEFFLUENT(SEE FIG. 1)FMEFFLUENTDO/TLITDO/TLITWAS PUMPS(2 @ 500 gpm)CFLOATING MIXERS(2 @ 75 hp)BVF BYPASS(SEE FIG.1)FMVFDVFDVFDVFDVFDTO BVFREACTORS(SEE FIG.1)VFDBYPASSEDANAEROBICEFFLUENT(SEE FIG 1)C:\USERS\SARAH.TAYLOR\ONEDRIVE - EVOQUA WATER TECHNOLOGIES LLC\DESKTOP\00486975\FIGURE 4 – PFD – PROCESS FLOW DIAGRAM.DWGLast Saved By:SARAH.TAYLORPlotted By:Date Plotted:TAYLOR, SARAH L18/04/2022 11:45 PRELIMINARYNOT TO SCALE0FIGURE 4BATTERY LIMITSBAR = 1" AT PLOT SCALESTD:11X17_B 0616 Border.dwg DATEDATEDATECHECKERDESIGNERCLIENTTITLEDATESCALE:REF:PROJECTREVDRAWINGCODESHEETCOMPANY CONFIDENTIAL INFORMATIONTHIS DOCUMENT AND ALL INFORMATION CONTAINEDHEREIN, INCLUDING THE DESIGN CONCEPTS, ARE THEPROPERTY OF EVOQUA AND/OR ITS AFFILIATES AND ARESUBMITTED IN CONFIDENCE. THEY MAY BE USED ONLY FORTHE EXPRESS PURPOSE FOR WHICH THEY ARE PROVIDEDAND MUST NOT BE DISCLOSED, REPRODUCED, LOANED ORUSED IN ANY OTHER MANNER WITHOUT THE EXPRESSWRITTEN CONSENT OF EVOQUA. ALL PATENT RIGHTS ARERESERVED. THIS DOCUMENT IS PROTECTED UNDERAPPLICABLE COPYRIGHT LAWS. UPON DEMAND OFEVOQUA, THIS DOCUMENT, ALONG WITH ALL COPIES ANDEXTRACTS, AND ALL RELATED NOTES AND ANALYSES MUSTBE RETURNED TO EVOQUA OR DESTROYED, ASINSTRUCTED BY EVOQUA. ACCEPTANCE OF THE DELIVERYOF THIS DOCUMENT CONSTITUTES AGREEMENT TO THESETERMS.ABCD87654321OFENGINEERMANAGERREVDESCRIPTION CHKDDATE DWNAPVD ECNADI SYSTEMS370 WILSEY ROAD FREDERICTON, NB, CANADA+1(506) 452-7307WASTEWATER TREATMENT SYSTEM FOR PASCO PWRF FACILITYS.TAYLORS.ZELAYAPROCESS FLOW DIAGRAM - OPTION 2004869752022-04-18Page 285 of 297 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project PROPOSAL Scoring Sheet Anaergia 1 Description Possible Score Score Assembly of Proposal Evaluator’s Comments: • Very large submittal. Had issues submitting proposal due to file size (39MB). Could have divided proposal into different files or compressed file for easier transmission. • Appendix B: Letters of Support – AECOM’s is a draft agreement versus letter. 5 4 Approach and Understanding of Requirements Evaluator’s Comments: • BNR and AD systems via lease with the City. • Wastewater treatment provided in exchange for service fees from Processors. • Proposed approach appears to be heavy on the amount of equipment needed and the separation of treatment processes. • A much larger system than what we thought was needed for PWRF needs. 15 10 Experience of Developer The Developer will provide background information on the firm, including years in business; total annual revenue; organization structure; and experience of key personnel. Evaluator’s Comments: • Anaergia seems to have a lot of experience with many very large AD/RNG systems. Three example projects provided. • Experience appears to be more focused on organic solid waste systems rather than agricultural wastewater as the source for methane production. • Didn’t see any mention of a land treatment system for final disposal of processed wastewater. 15 12 Page 286 of 297 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project PROPOSAL Scoring Sheet Anaergia 2 Technical Approach Description of Proposed Project Developers will describe the project (or projects) they expect to develop in response to this RFP, and if appropriate an alternative project (or projects) to the primary project. The Developer will identify the expected purchaser of their energy product, and/or outline their plan and schedule for securing an energy purchaser. The Developer will summarize their expectations for energy pricing, and the basis for these expectations. Project Development Schedule The Developer will provide an expected project development schedule, expressed in months after notification of award. As a minimum, the Developer should show early completion dates and late completion dates for key milestones. Evaluator’s Comments: • Two separate waste streams proposed: organic solid waste and Processor wastewater. Organic solid waste stream goes to an anaerobic digestor with captured gas going to RNG process. • Processor stream of agricultural wastewater (11.5 MGD) going from DAF units to SBR (12.8 MGD) then to discharge (storage ponds/farm fields). • No Processor water going to AD system. • Proposal seems more focused on the organic solid waste stream to RNG rather than the Processor’s wastewater to RNG. • More cost to the Processors for something they don’t utilize. • Not quite what we are looking for. • The proposed schedule of completion by 2026 does not fit our needed timeframe. • Might be too big a proposed project than what we need or can fit within our schedule. 15 5 Financial Qualifications of Developer Evaluator’s Comments: • Anaergia appears very qualified to be able to finance their proposal as they have done with previous projects. 10 10 Page 287 of 297 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project PROPOSAL Scoring Sheet Anaergia 3 Compensation to Processors Developer must include proposed compensation terms for royalty payments, fixed percentage of gross revenue, variable percentage of gross revenue or fixed monthly payment. Developer can submit any compensation approach, provided the calculation methodology is transparent and verifiable. Developer should also indicate whether compensation proposed includes the sharing of any tax incentives, tax benefits, renewable energy certificates, assistance payments, or other financial or monetary benefits received by virtue of the characterization of RNG as a renewable energy resource. Evaluator’s Comments: • Project Cost: $185M • Will provide a share of 50% of net revenue, to be divided between the City and Processors. • Net Revenue defined as total facility revenue (including sales of both the RNG commodity and environmental attributes) less RNG facility operation costs and RNG facility capital charges. • No breakout of estimated cost • Very expensive project – more than double other estimated options. • No estimate provided of shared net revenues 40 15 PROPOSAL EVALUATION – SCORING SUMMARY 100 56 Page 288 of 297 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project PROPOSAL Scoring Sheet Burnham/SEV 1 Description Possible Score Score Assembly of Proposal Evaluator’s Comments: • Clear and concise. • Few typos here and there – no big deal. • Superscripts in Table 1 with no footnotes. 5 5 Approach and Understanding of Requirements Evaluator’s Comments: • Good understanding of project and needs related to Processor wastewater. • Two large (33 MG) anaerobic digesters • Two large (2 MG) Sequencing Batch Reactors. • Fairly simple system proposed. 15 13 Experience of Developer The Developer will provide background information on the firm, including years in business; total annual revenue; organization structure; and experience of key personnel. Evaluator’s Comments: • Fairly new companies, Burnham and SEV • Staff appears to have a lot of experience in bioenergy, waste, and RNG projects from past companies. • Appears to be small but nimble in ability to develop successful projects. • Evoqua has lots of experience with AD systems. 15 12 Page 289 of 297 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project PROPOSAL Scoring Sheet Burnham/SEV 2 Technical Approach Description of Proposed Project Developers will describe the project (or projects) they expect to develop in response to this RFP, and if appropriate an alternative project (or projects) to the primary project. The Developer will identify the expected purchaser of their energy product, and/or outline their plan and schedule for securing an energy purchaser. The Developer will summarize their expectations for energy pricing, and the basis for these expectations. Project Development Schedule The Developer will provide an expected project development schedule, expressed in months after notification of award. As a minimum, the Developer should show early completion dates and late completion dates for key milestones. Evaluator’s Comments: • Single waste stream of Processor wastewater and organic solids. • Detailed description of proposed equipment and processes • Location of gas injection point shown. • Two options proposed: one with Lamb Weston and one without LW. • Experience with 30% design effort. • AD Reactor 1 Commissioning in 18 months (Q4 2023) • Schedule Delay Mitigation provided. 15 13 Financial Qualifications of Developer Evaluator’s Comments: • Burnham + SEV + Evoqua + IMCO: RNG development and sales, AD design, construction. • Backed by multi-million-dollar commitment from a leading energy private equity firm. • Collectively over 100 years of experience. • Burham SEV LLC less than 1 year old. • No annual audited financials or total revenue figures provided. 10 5 Page 290 of 297 Pasco Process Water Reuse Facility (PWRF) Industrial Wastewater-to-RNG Project PROPOSAL Scoring Sheet Burnham/SEV 3 Compensation to Processors Developer must include proposed compensation terms for royalty payments, fixed percentage of gross revenue, variable percentage of gross revenue or fixed monthly payment. Developer can submit any compensation approach, provided the calculation methodology is transparent and verifiable. Developer should also indicate whether compensation proposed includes the sharing of any tax incentives, tax benefits, renewable energy certificates, assistance payments, or other financial or monetary benefits received by virtue of the characterization of RNG as a renewable energy resource. Evaluator’s Comments: • Project Cost: $77M (w/o LW). • Excludes plant demolition, sales tax, utilities, property taxes, CAPEX and OPEX for RNG equipment. • 80% of net value from RNG assets returned to the City/Processors. • Will provide clear, agreed-upon RNG accounting on a regular basis. • Net revenues shared via reduced wastewater treatment rates. • Currently estimated wastewater treatment rate = $8,300/MG • City allocates costs to Processors using any preferred methodology. • Cost and rate breakdowns provided. 40 35 PROPOSAL EVALUATION – SCORING SUMMARY 100 83 Page 291 of 297 QUALITY OF LIFE Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure by: • Using Community Development Block Grant (CDBG) and other public and private capital to revitalize older neighborhoods and safe routes to essential services. • Continuing efforts toward designing, siting, programming needs, and site selection for a community center and pursuing acquisition of land for future community park. • Developing Phase I of the A Street Sporting Complex and continue efforts to provide additional soccer and sports fields. • Coordinating with the Pasco Public Facilities District to develop a public education campaign, financial analysis and prepare a ballot measure concerning the development of a regional aquatic facility for consideration by the people. • Completing construction of a new animal control facility. • Ongoing efforts to improve efficiency and effectiveness of public resources in the delivery of municipal services, programs, and long-term maintenance and viability of public facilities. • Collaborating with the Inclusion, Diversity and Equity Commission and community leaders to enhance engagement efforts and organizational cultural competency. • Updating design standards for the development of new neighborhoods and re-development to promote greater neighborhood cohesion through design elements, e.g.: walkability, aesthetics, sustainability, and community gathering spaces. • Updating Parks and Facilities Comprehensive Plan to include: public facilities inventory, needs assessment, level of service, and centers evaluation. • Teaming with local and regional partners to develop a Housing Action Plan with a focus on strategies that emphasize affordable housing. FINANCIAL SUSTAINABILITY Enhance the long-term financial viability, value, and service levels of services and programs, including: • Regular evaluation of services and programs to confirm importance to community, adequacy, and cost-benefit. • Continuation of cost of service and recovery targets in evaluating City services. • Ongoing evaluation of costs, processes and performance associated with delivery of City services including customer feedback and satisfaction, staffing, facilities, and partnership opportunities. • Instilling and promoting an organizational culture of customer service across all business lines. • Updating policies relating to urbanization of the unincorporated islands to assure consistency with long-range planning, community safety, and fiscal sustainability. City Council Goals 2020-2021 Page 292 of 297 COMMUNITY SAFETY Preserve past improvements and promote future gains by: • Developing a Comprehensive Police Strategic Master Plan through a transparent process to evaluate future service levels of the department to assure sustainability, public safety, and crime control over the next 5-10 years. • Collaborating with regional and community partners to evaluate and implement strategies to reduce the incidence of homelessness. • Leveraging and expanding partnerships to maintain and enhance behavioral health services to community members in crisis being assisted by police and fire. • Continuing efforts to improve police and community relations. • Working to achieve and maintain target fire response times through operational improvements and long-range strategic planning of facilities and staffing. • Focusing on the long-term goal of sustaining a Washington State Rating Bureau Class 3 community rating. • Leveraging infrastructure database of sidewalks, streetlights and pavement conditions along with evaluating policies and methods to address needs and inequities. COMMUNITY TRANSPORTATION NETWORK Promote a highly-functional multi-modal transportation network through: • Commencement and completion of construction of the Lewis Street Overpass project. • Continued emphasis on improvements in Road 68/I-182/Burden Blvd. corridor to improve operation and safety. • Data-driven pro-active neighborhood traffic calming efforts. • Continued collaboration with Ben Franklin Transit to enhance mobility and access. • Completion of a Transportation System Master Plan and utilization of its recommendations to develop policies, regulations, programs, and projects that provide for greater connectivity, strategic investment, mobility, multi-modal systems, accessibility, efficiency and safety. ECONOMIC VITALITY Promote and encourage economic vitality by supporting: • Downtown revitalization efforts of Downtown Pasco Development Authority (DPDA), post-COVID restart, and City initiatives such as Downtown Master Plan process and sign code modifications. • The construction of Peanuts Park and Farmers Market and continued efforts to pursue streetscape and gateway upgrades. • The completion of the Comprehensive Land Use Plan Update and Broadmoor Master Plan efforts, adoption of Urban Growth Area expansion alternative, implementation of adopted long-range planning efforts with appropriate analysis and adoption of planning actions including: zoning code changes, phased sign code update, and development regulations and standards. • Increased efforts to promote the community as a desirable place for commercial and industrial development by promoting small business outreach and assistance, predictability in project review, and excellent customer service. • Partnerships and encouragement of Department of Natural Resources (DNR) to facilitate development of the remaining state-owned properties at Road 68/I-182. Page 293 of 297 • Continued coordination with the Port of Pasco to complete and implement a waterfront-zoning plan and provide for public infrastructure. • Active partnerships in the planning and development of strategies to promote tourism and deployment of assets to spur economic activity. • In concert with community partners, development of a comprehensive economic development plan. COMMUNITY IDENTITY Identify opportunities to enhance community identity, cohesion and image through: • Continued efforts of community surveying through traditional methods and the application of new technologies. • Providing opportunities for community engagement through boards, commissions, volunteer opportunities, social media, forums, and other outlets. • Enhanced inter-agency and constituent coordination developed during the pandemic. • Continued efforts of the community identity/image enhancement campaign to include promotion of community and organizational successes. • Enhanced participation and support of cultural events occurring within the community. • Support of the Arts and Culture Commission in promoting unity and the celebration of diversity through art and culture programs. For more information, visit www.pasco-wa.gov/councilgoals Page 294 of 297 CALIDAD DE VIDA Promover una vida de buena calidad a través de programas de calidad, servicios e inversiones y reinversiones adecuadas en la infraestructura de la comunidad al: • Utilizar una Community Development Block Grant (CDBG) (Concesión de Ayuda Federal para el Desarrollo Comunitario) y otro capital público y privado para renovar las vecindades antiguas y las rutas seguras a los servicios esenciales. • Continuar los esfuerzos hacia el diseño, las obras de construcción, las necesidades programáticas, y la elección de dichas obras de construcción, para un centro comunitario y comprar el terreno para un futuro parque comunitario. • Desarrollar la 1era Fase del Sporting Complex (Complejo Deportivo) de la Calle A y continuar los esfuerzos de proporcionar más campos de fútbol y de otros deportes. • Coordinar con el Pasco Public Facilities District (Distrito de las Instalaciones Públicas de Pasco) para desarrollar una campaña de educación pública, un análisis financiero, y preparar una propuesta sobre el desarrollo de una instalación acuática regional para que sea considerada por el público. • Terminar la construcción de una nueva instalación para el control de animales. • Continuar los esfuerzos para mejorar la eficiencia y la eficacia de los recursos públicos en la entrega de servicios municipales, programas, y el mantenimiento y la viabilidad a largo plazo de instalaciones públicas. • Colaborar con la Inclusion, Diversity and Equity Commission (Comisión de Inclusión, Diversidad, y Equidad) y con los líderes comunitarios para mejorar los esfuerzos de participación y la capacidad cultural organizacional. • Actualizar los estándares de diseño para el desarrollo de nuevas vecindades y el redesarrollo para promover más cohesión de las vecindades a través de elementos de diseño, p. ej.: viabilidad peatonal, evaluación de las necesidades, sustentabilidad, y lugares donde se puedan reunir los miembros de la comunidad. • Actualizar el Parks and Facilities Comprehensive Plan (Plan Comprehensivo de los Parques y las Instalaciones) para que incluya: un inventario de instalaciones públicas, una evaluación de las necesidades, el nivel de servicio, y la evaluación del centro. • Trabajar en equipo con colaboradores regionales para desarrollar un Housing Action Plan (Plan de Acción para Viviendas) con un enfoque en las estrategias que enfatizan viviendas económicas. SUSTENTABILIDAD FINANCIERA Mejorar la sustentabilidad financiera a largo plazo, el valor, y los niveles de servicios y programas, incluyendo: • La evaluación regular de los servicios y de los programas para confirmar la importancia de la comunidad, la capitalización adecuada, y el costo-beneficio. Metas del Concilio de la Ciudad del 2020-2021 Page 295 of 297 • La continuación del costo por el servicio y de las metas de recuperación al evaluar los servicios de la Ciudad. • La evaluación continua de los costos, los procesos y el desempeño relacionado con la entrega de los servicios de la Ciudad incluyendo la retroalimentación y la satisfacción del cliente, el personal, las instalaciones, y las oportunidades colaborativas. • Inculcar y promover una cultura organizacional de servicio al cliente a lo largo de todas las líneas de negocio. • Actualizar las políticas relacionadas con la urbanización de las islas no incorporadas para asegurar consistencia con la planificación a largo plazo, la seguridad comunitaria, y la sustentabilidad fiscal. SEGURIDAD COMUNITARIA Preservar las mejorías anteriores y promover las ganancias futuras al: • Desarrollar un Comprehensive Police Strategic Master Plan (Plan Maestro Estratégico Comprehensivo Policial) a través de un proceso transparente para evaluar los niveles futuros de servicio del departamento para asegurar sustentabilidad, seguridad pública, y control de crímenes durante los siguientes 5-10 años. • Trabajar con colaboradores regionales y comunitarios para evaluar e implementar estrategias para reducir los casos de personas sin techo. • Hacer uso y ampliar las colaboraciones para mantener y mejorar los servicios de salud conductual a los miembros de la comunidad que se encuentran en medio de una crisis, ayudados por la policía y por los bomberos. • Continuar los esfuerzos para mejorar la relación con la policía y con la comunidad. • Trabajar para lograr y mantener el tiempo de reacción de los bomberos a través de mejorías operacionales y la planificación estratégica de instalaciones y personal a largo plazo. • Enfocarse en la meta a largo plazo de mantener una clasificación de la comunidad Clase 3 del Washington State Rating Bureau (Departamento de Clasificación del Estado de Washington). • Utilizar la base de datos de la infraestructura de las banquetas, los faroles, y las condiciones del pavimento, como también evaluar las políticas y los métodos para tratar las necesidades y las injusticias. RED DE TRANSPORTE COMUNITARIO Promover una red de transporte extremadamente funcional y multimodal a través de: • El comienzo y el término de la construcción del proyecto Lewis Street Overpass. • El énfasis continuo en las mejorías de la ruta Road 68/I-182/Burden Blvd. para mejorar la operación y la seguridad. • Los esfuerzos proactivos basados en datos para calmar el tráfico en las vecindades. • La colaboración continua con Ben Franklin Transit para mejorar la movilidad y el acceso. • El término del Transportation System Master Plan (Plan Maestro del Sistema de Transporte) y la utilización de sus recomendaciones para desarrollar políticas, reglas, programas, y proyectos que proporcionan más conectividad, inversiones estratégicas, movilidad, sistemas multimodales, accesibilidad, eficiencia, y seguridad. Page 296 of 297 VITALIDAD ECONOMICA Promover y motivar la vitalidad económica al apoyar: • Los esfuerzos de renovación de la Downtown Pasco Development Authority (DPDA) (Autoridad de Desarrollo del Centro de Pasco), el reinicio después de COVID, y las iniciativas de la Ciudad como el proceso del Downtown Master Plan (Plan Maestro del Centro) y las modificaciones de los códigos de anuncios. • La construcción del Peanuts Park and Farmers Market (Parque Peanuts y el Mercado) y los esfuerzos continuos para discutir paisajes urbanos y actualizaciones de entradas. • El término de los esfuerzos de la Comprehensive Land Use Plan Update (Actualización Comprehensiva del Uso de Terrenos) y los esfuerzos del Broadmoor Master Plan (Plan Maestro de Broadmoor), la adopción de la alternativa de la expansión de Urban Growth Area (Área del Crecimiento Urbano), la implementación de los esfuerzos de planificación a largo plazo con los análisis adecuados y la adopción de acciones de planificación incluyendo: los cambios a los códigos de zonas, la actualización de los códigos de los anuncios de las fases, y el desarrollo de las reglas y los estándares. • Más esfuerzos para promover a la comunidad como un lugar atractivo para el desarrollo comercial e industrial al fomentar el alcance y la ayuda a los negocios pequeños, la predictibilidad en la revisión de proyectos, y un excelente servicio al cliente. • Las colaboraciones y la motivación del Department of Natural Resources (DNR) (Departamento de Recursos Naturales) para facilitar el desarrollo de las propiedades restantes del estado en Road 68/I- 182. • La coordinación continua con el Port of Pasco (Puerto de Pasco) para terminar e implementar un plan de zonas costeras y proporcionar una infraestructura pública. • Las colaboraciones activas en la planificación y el desarrollo de estrategias para promover el turismo y la utilización de recursos para estimular actividad económica. • Junto con los colaboradores de la comunidad, crear un plan comprehensivo de desarrollo económico. IDENTIDAD COMUNITARIA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen a través de: • Los esfuerzos continuos para evaluar a la comunidad a través de los métodos tradicionales y la aplicación de nuevas tecnologías. • Proporcionar oportunidades para la involucración comunitaria a través de mesas directivas, comisiones, oportunidades para voluntarios, medios sociales, foros, y otros medios. • Una mejor coordinación entre las agencias y los constituyentes desarrollada durante la pandémica. • Los esfuerzos continuos de campañas para la mejoría de la identidad/imagen comunitaria que promuevan a la comunidad y a los éxitos organizacionales. • Una mejor participación y apoyo de los eventos culturales llevados a cabo dentro de la comunidad. • El apoyo de la Arts and Culture Commission (Comisión de Artes y Cultura) al promover la unidad y celebrar la diversidad a través de programas de arte y cultura. Para más información, visite www.pasco-wa.gov/councilgoals Page 297 of 297