HomeMy WebLinkAbout2022.10.11 Council Workshop Packet
AGENDA
City Council Workshop Meeting
7:00 PM - Tuesday, October 11, 2022
City Council Chambers & GoToWebinar
Page
1. MEETING INSTRUCTIONS for REMOTE ACCESS - The Pasco City Council
Workshops 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.
To listen to the meeting via phone, call (631) 992-3211 and use access code
613-585-088.
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
Girl Scouts to Lead Pledge of Allegiance in Honor of the 10th
Anniversary of "Day of the Girl"
4. EXECUTIVE SESSION
(a) Discussion with Legal Counsel about Current or Potential
Litigation per RCW 42.30.110(1)(i) (30 minutes)
5. VERBAL REPORTS FROM COUNCILMEMBERS
6. ITEMS FOR DISCUSSION
4 - 96 (a) Public Forum for Formation of Broadmoor Tax Increment Area
(TIA)
97 - 140 (b) General Fund Revenue and Ad Valorem Tax (Property Tax)
Presentation
141 - 165 (c) Ambulance Utility Rate Study
Page 1 of 229
166 - 199 (d) Resolution – Butterfield Water Treatment Plant Facility Plan
Acceptance
200 - 203 (e) Tri-Cities Animal Control and Sheltering Services Update
204 - 222 (f) Ordinance & Resolution - Budget Amendment & Approval of
Behavioral Health Personal Services Agreement with Awareness
Consulting & Training, LLC
223 - 227 (g) Resolution - Appointment Process for City Boards &
Commissions
(h) Recap of Recent Retail Sales of Cannabis Listening Sessions
7. MISCELLANEOUS COUNCIL DISCUSSION
8. EXECUTIVE SESSION
(a) Consideration of Site Selection or Acquisition of Real Estate
Purchase or Lease if Likelihood that Disclosure Would Increase
Price per RCW 42.30.110(1)(b) and Discuss Collective Bargaining
Unit Negotiations per RCW 42.30.140(4)(a) (20 minutes)
9. ADJOURNMENT
10. ADDITIONAL NOTES
228 - 229 (a) Adopted 2020-2021 Council Goals (Reference Only)
(b) REMINDERS
• Wednesday, October 12, 5:45 PM: Tri-Cities Regional
Public Facilities District Board Meeting – Online ZOOM
Meeting (COUNCILMEMBERS JOSEPH CAMPOS, DAVID
MILNE & CRAIG MALONEY Reps)
• Thursday, October 13, 4:30 PM: Pasco School District
(PSD) Skilled & Technical Advisory Committee – Virtual
(COUNCILMEMBER DAVID MILNE)
• Thursday, October 13, 7:00 PM: Ben Franklin Transit Board
Meeting – Transit Facility (COUNCILMEMBER JOSEPH
CAMPOS Rep.; MAYOR PRO TEM CRAIG MALONEY, Alt.)
• Monday, October 17, 6:00 PM: LEOFF Disability Board –
City Hall Conference Room 1, Pasco City Hall (MAYOR
BLANCH BARAJAS, Rep.; MAYOR PRO TEM CRAIG
MALONEY, Alt.)
Page 2 of 229
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 3 of 229
AGENDA REPORT
FOR: City Council October 5, 2022
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Dave Zabell, City Manager
Executive
SUBJECT: Public Forum for Formation of Broadmoor Tax Increment Area (TIA)
I. REFERENCE(S):
Draft Ordinance Establishing Tax Incremental Area (TIA)
Broadmoor TIF Project Analysis
Office of State Treasurer TIF Review
Resolution 4179 Declaring City Council intent to form a Tax Incremental Area
Broadmoor Improvements Map
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion of establishment of Tax Incremental Financing (TIF) Area
III. FISCAL IMPACT:
Establishment of a TIF Area creates a funding mechanism for repayment of
debt issued to construct public infrastructure improvements that otherwise are
anticipated not to occur but for City support.
IV. HISTORY AND FACTS BRIEF:
The City has been working with Bob Stowe of Stowe Development & Strategies
to assist in implementing and initiating development within the Broadmoor area
consistent with the City’s planning and economic development goals and
interests.
As a result of a new State law, House Bill 1189, created in 2021, cities, counties,
and ports in Washington State may now utilize Tax Increment Financing (TIF) to
financially support infrastructure improvements (e.g., streets, water and sewer
systems, sidewalks, parking facilities, stormwater systems, park or community
facilities, and brownfield mitigation) necessary for private development,
providing for jobs and additional tax revenue. Council is familiar with this
Page 4 of 229
mechanism through the Port of Pasco’s recent enactment of a TIF at the
Riemann Industrial Center. In the Broadmoor area, a TIF can be an important
tool allowing the City to make targeted infrastructure investments to spur
economic development that will benefit Pasco and the region.
Thomaof Murray, Gordon with along Stowe Mr. Briahna Honeywell s
Governmental Affairs, provided City Council with a brief overview of Tax
Increment Financing (TIF) at the Council workshop of April 25, 2022.
In response to the TIF presentation, Resolution number 4179 was adopted
declaring the Council’s intent to form a Tax Increment Area (TIA) for the
Broadmoor site May 2, 2022.
City identified has management Resolution, Since the of adoption TIF
appropriate TIF infrastructure improvements that are outside the developers'
ability dethe and achieve fund to sired since Additionally, development.
resolution adoption, a Project Analysis for the Broadmoor Area Tax Increment
Area has been prepared and submitted to the Office of the State Treasurer.
Review by the Treasurer's Office has been completed and assessed meeting
the requirements of RCW 39.114, clearing the way for Council consideration.
Finally, the City has conducted public information offerings on the proposed Tax
Increment Area (TIA) with a desire to inform our community and other public
agencies about the anticipated benefits and impacts related to development of
the Broadmoor area.
V. DISCUSSION:
Following the adoption of Resolution 4179, a Project Analysis and subsequent,
required Office of State Treasurer review were completed. The Project Analysis
represents risks and opportunities both examination comprehensive a of
associated with the proposed TIA. Included are topics of proposed private
development, associated infrastructure needs and the nexus between potential
development and the proposed TIF funded projects and possible TIF sourced
revenues Importanrevenues. and development other generated t this to
consideration, and outlined in the plan are potential risks that arise from a slower
than expected development time frame or lower than expected assessed
valuation growth. Complementary to this consideration of risk are outlined
mitigation plans related to both development and financial conditions.
The public Project Analysis also describes certain specific infrastructure
improvements to illustrate the types of arterial street construction and associated
infrastructure (water, sewer and stormwater facilities) and key intersections and
ramp improvements to Interstate 182 that are anticipated to be necessary to
serve and encourage private development within the TIA. The proposed Draft
Page 5 of 229
Ordinance describes the public improvements in a more general manner to allow
for greater flexibility within the context of the State's TIF law. The City Manager
will confirm the particular public improvements within the scope of the types of
public improvements described in the Draft Ordinance that will be funded by TIF
based on development interests and needs. The final public improvements and
their operational features will be determined prior to any final project plans and
specifications and the issuance of any debt by the City for those improvements.
The Council will be required to approve any issuance of debt.
The introduction of Tax Incremental Financing (TIF) availability to public entities
provides a new mechanism for funding public investment in infrastructure. It is
important to note that the creation of a TIF area does not represent a new tax.
The tax rate in the TIF area does not change, based on TIF existence.
The economic tool of TIF captures new property tax revenues created by
increased assessed valuation. The City will then use the increased proper ty tax
revenues to retire the TIF related debt. As development takes time, there will be
a need for the City's General Fund to support any TIF area associated debt
service payments.
Based on the Project Analysis and related potential for economic benefit to the
City of Pasco the opportunity is presented to Council for discussion. Other than
Council's approval of any infrastructure debt issuance, the Draft Ordinance
represents the Council's final action necessary to form a TIA.
Page 6 of 229
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
DESIGNATING THE BROADMOOR TAX INCREMENT AREA AND
PROVIDING FOR RELATED MATTERS.
WHEREAS, for many years the City of Pasco (City) has been studying, evaluating,
designing and completing key infrastructure improvements to enable a mixed use development
within the Broadmoor area; and
WHEREAS, Broadmoor Properties, LLC owns 761 acres of property that is being planned
for mixed use development and is in need of substantial infrastructure improvements to support
the desired development; and
WHEREAS, the Broadmoor area has the opportunity if built, to serve as a significant
economic engine for the Pasco community providing for increased tax revenues to support City
services and providing significant employment opportunities for the residents of the City; and
WHEREAS, the Washington State Legislature, during its 2021 legislative session, enacted
Engrossed Substitute House Bill 1189 as Chapter 207, Laws of 2021, titled “AN ACT Relating to
tax increment financing" and codified as RCW 39.114, which authorizes local governments,
including cities, to carry out tax increment financing of public improvements needed to support
vital private economic development projects; and
WHEREAS, Tax Increment Financing (TIF) is a program that allocates revenues
generated from the increased assessed valuation of properties improved by the development that
are within a designated tax increment area (TIA) to pay for public improvements that are needed
to support the private development; and
WHEREAS, The Pasco City Council previously adopted Resolution No 4179 declaring
its intent to for a TIA in May 2022; and
WHEREAS, City management has identified the TIF infrastructure improvements that are
outside of a developer’s ability to fund and achieve the desired developm ent based on market
conditions necessary to accommodate commercial and mixed-use tenants; and
WHEREAS, the TIF Improvement Projects have been estimated to cost approximately
$39 million to construct; and
WHEREAS, Broadmoor Properties will be dedicating approximately 29.3 acres of land
for the identified TIF Projects resulting in an average value range between $6.4 million to $12.7
million in project benefit; and
Page 7 of 229
WHEREAS, Broadmoor Properties and/or future developers of the site will be funding
and constructing additional public improvements at an estimated cost of $39 million to $45 million
along with dedicating an additional 34 acres of land to support those public improvements; and
WHEREAS, City management anticipates bringing forward for Council consideration an
agreement between the City and Broadmoor Properties, LLC that memorializes the infrastructure
improvement responsibilities previously identified between the parties in a Letter of
Understanding prior to the issuance any debt associated with the TIF infrastructure improvements;
and
WHEREAS, the City has prepared a Project Analysis for the Broadmoor TIA and
submitted such to the Office of the State Treasurer for review and comment as required by law,
and
WHEREAS, the Office of the State Treasurer Project has completed its review of the
Broadmoor Project Analysis and has stated that it meets the requirements of RCW 39.114; and
WHEREAS, the City has conducted public briefings on the proposed TIA to inform the
community and other public agencies about the anticipated benefits and impacts associated with
the development.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. Definitions. Capitalized terms used in this ordinance shall have the meanings
set forth in the recitals to this ordinance above and in this Section 1. The uncapitalized terms "public
improvement costs," "regular property taxes" and "tax allocation revenues" used in this ordinance
shall have the meanings provided for those terms by RCW 39.114.010, as the context requires.
(a) "City" means the City of Pasco, Washington
(b) "Code" means the Internal Revenue Code of 1986, as amended, and applicable rules
and regulations promulgated thereunder.
(c) "Council" means the Pasco City Council, acting in its legislative capacity.
(d) "County" means Franklin County, Washington.
(e) "Finance Director" means the Director of Finance of the City or such other officer of
the City who succeeds to substantially all of the responsibilities of that office.
(f) "Increment Area" means the 671-acres of land designated by Section 2 of this
Ordinance called the “Broadmoor Development.”
(g) "Project Analysis" means the City's Broadmoor TIF Project Analysis submitted to the
Washington State Treasurer in August 2022 for its review and comment.
Page 8 of 229
(h) "Treasurer's Review Letter'' means the letter to the City from the Office of State
Treasurer dated September 23, 2022, summarizing its review of and providing
comments, recommendations and acceptance with respect to the Project Analysis for
consideration by the City.
Section 2. Designation of Increment Area. The City designates the 671-acre parcel of land
called the Broadmoor development and legally described Exhibit A to this Ordinance. In making
this designation, the Council takes note of the facts that the Increment Area (i) is the only increment
area designated by the City under the TIF Act, (ii) is located within the boundaries of the City, (iii)
does not include the City's entire territory, and (iv) does not have an assessed value on the date of
this ordinance greater than the lesser of $200,000,000 or 20 percent of the total assessed value of
taxable property within the City of $8,065,205,983.
Section 3. Sunset Date of the Increment Area. The sunset date of the Increment Area is
(i) December 31, 2048, which is the date not later than 25 years after the first year (calendar year
2023) in which tax allocation revenues will be collected on taxable property within the Increment
Area (the "outside sunset date"), or (ii) if earlier, the date ("an early sunset date") on which the
City certifies to the County Treasurer that all public improvement costs to be paid or reimbursed
with tax allocation revenues derived from the Increment Area have been fully paid, including but
not limited to reimbursements to the City for principal and interest payments required to be made
by the City from revenue sources other than tax allocation revenues on limited tax general
obligation bonds issued to finance the portion of public improvement costs that are intended to be
paid and retired, in whole, from tax allocation revenues, as authorized by RCW 39.114.060(1).
Section 4. Identification of Public Improvements to Be Financed . The public
improvements to be financed consist of the following infrastructure improvements to be owned
by the City, the County and/or the City and located within or outside of and serving the Increment
Area:
(a) Streets, roads, streetlights and other road improvements needed to serve the
Increment Area;
(b) Interchange improvements at Interstate 182 and Road 100 needed to serve the
Increment Area;
(c) Water and Sewer infrastructure improvements needed to serve the Increment Area;
The exact configurations and operational features of the public improvements described above are
to be determined by the final plans and specifications for such public improvements. As authorized
by RCW 39.114.020(1){h}, the City may expand, alter, or add to the public improvements
identified above only if the Council determines that such changes are necessary to assure that the
public improvements identified above can be constructed or operated as intended.
Page 9 of 229
Section5. Expected Issuance of Bonds to Finance a Portion of the Public Improvement
Costs.
(a) Pursuant to RCW 39.114.060 and other law, including the applicable provisions of
Chapters 53.36 and 39.46 RCW, the City intends to incur general indebtedness and issue
limited tax general obligation bonds with a term of approximately 25 years to finance
a portion (the "bond-financed portion"} of the public improvement costs. To pay and
secure the bonds, the City expects to pledge the tax allocation revenues received by the
City from the Increment Area, the City’s other regular property tax revenues, other
lawfully available revenues of the City, and the full faith and credit of the City. The
bonds are expected to be issued as tax-exempt bonds under the applicable provisions of
the Code; however, if and to the extent that bond counsel determines that any of the
public improvements (or portions thereof} do not qualify to be financed with tax-
exempt bonds, the City expects to allocate funding sources other than proceeds of tax-
exempt bonds, including but not limited to proceeds of taxable bonds, to the financing
of those public improvements (or portions thereof).
(b) As of the date of adoption of this ordinance, the estimated maximum amount of bonds
expected to be issued by the City to finance the bond-financed portion of the public
improvement costs is $39,000,000. This estimated maximum amount of bonds is
subject to change based upon the final configuration and final public improvement costs
of the public improvements identified in Section 4 of this ordinance. The principal
amount of such bonds also may vary (be lower or higher) to the extent that the bonds
are sold with original issue premium or original issue discount (respectively) as needed
to provide bond proceeds sufficient to pay the bond-financed portion of the public
improvement costs.
(c) While the City will pledge its full faith and credit as well as its regular property tax
revenues and other lawfully available revenues, in addition to tax allocation revenues
received by the City from the Increment Area, to pay and secure debt service on the
bonds, the City intends that debt service on the bonds shall be payable, in whole, from
tax allocation revenues as authorized by RCW 39.114.060(1). Accordingly, if and to the
extent debt service payments on its general obligation bonds issued to finance the public
improvements are required to be made from the City's other regular property tax
revenues and/or from other lawfully available revenues because the amount of tax
allocation revenues received are insufficient for that purpose, those debt service
payments to that extent shall be reimbursed from later-received tax allocation revenues
that become available to reimburse the City for those debt service payments. The
Finance Director, in consultation with the County Treasurer, will adopt accounting
procedures sufficient to document the use of tax allocation revenues to reimburse debt
service payments previously made from other revenues, consistent with the City's
intention and expectation that its general obligation bonds issued to finance public
improvement costs are to be payable entirely from tax allocation revenues (as permitted
by the Act).
Page 10 of 229
(d) The City intends that the provisions of Section 2 of this ordinance (identifying the
public improvements to be financed) and this Section 5 (stating the estimated maximum
amount of bonds expected to be issued) together shall constitute a declaration of official
intent under Treasury Regulations §1.150-2 to reimburse with bond proceeds any
original expenditures for the public improvements paid before the issue date of the
bonds that are intended to finance the bond-financed portion of the public
improvement costs.
Section 6. Increment to Take Effect on June 1, 2023. The tax increment for the
Increment Area designated in Section 2 of this resolution shall take effect on June 1, 2023.
Section 7. Deadline for Commencement of Construction of Public Improvements.
The City expects that construction of the public improvements identified in Section 4 of this
ordinance will commence in the spring of 2023. In no event will construction of those public
improvements commence later than October 17, 2027, the date five years from the date of adoption
of this Ordinance, unless that deadline is extended for good cause.
Section 8. Required Findings by the City Council. Based upon the Project Analysis, the
Council finds that:
(a) The public improvements proposed to be paid or financed with tax allocation revenues
are expected to encourage private development within the Increment Area-i.e., the
private development of the Broadmoor Development, and to increase the assessed value
of real property within the Increment Area;
(b) The private development that is anticipated to occur within the Increment Area as a
result of the proposed public improvements will be permitted consistent with the
applicable zoning and development standards of the City, which is expected to be the
permitting jurisdiction for the Increment Area;
(c) The private development would not reasonably be expected to occur solely through
private investment within the reasonably foreseeable future without the proposed
public improvements; and
(d) The increased assessed value of taxable property within the Increment Area that could
reasonably be expected to occur without the proposed public improvements would be
less than the increase in the assessed value estimated to result from the proposed private
development with the proposed public improvements.
Page 11 of 229
Section 9. Preparation and Consideration of Project Analysis. As required by RCW
39.114.020(2), the Council has caused the Project Analysis (Exhibit B) to describe and analyze,
among other matters, the factors and considerations listed in that statute. The Council takes note of
the conclusion expressed in the Treasurer's Review Letter that the City's Project Analysis meets the
requirements of RCW 39.144. In its consideration and adoption of this ordinance, the Council has
reviewed and considered, among other things, the Project Analysis and the Treasurer's Review
Letter (Exhibit C), including the "Key Risks to the City”" and "Recommendations" noted in the
Treasurer's Review Letter.
Section 10. Reimbursement of Expenses Incurred by County Assessor and County
Treasurer. Pursuant to RCW 39.114.020(6), the City may enter into arrangements to reimburse the
County Assessor and County Treasurer for the expenses incurred by those officials in connection
with the implementation and ongoing administration of the Increment Area as described in RCW
39.114.0l0(G)(e). Such expenses shall be a portion of the public improvement costs to be paid or
reimbursed from tax allocation revenues derived from the Increment Area.
Section 11. Public Briefings Held by the City. As required by RCW 39.114.020(7)(a), the
City has held two public briefings for the community regarding the Broadmoor Development and
the public improvements needed to serve the Increment Area. These public briefings were held on
October 11, 2022, and October 17, 20, and announced to the public at least two weeks prior to the
date each briefing was held by publishing notice in the Tri City Hearld, a legal newspaper of general
circulation in the City and the greater Franklin County area, and by posting information on the
City’s website and on all of its social media sites. Each public briefing included a description of
the Increment Area, the public improvements proposed to be financed with tax allocation revenues
derived from the Increment Area, and a detailed estimate of tax revenues for the participating local
governments and taxing districts, including the amounts allocated to the public improvements
serving the Increment Area. The City also has provided additional briefings for elected and
administrative officials of the County, the Port and the Pasco School District.
Section 12. Publication of Notice and Delivery of Ordinance Designating Increment Area.
Both prior to and following the adoption of this ordinance, the City has published, and will publish,
in the TriCity Hearld, a legal newspaper of general circulation within the jurisdiction of the City,
a notice that describes the public improvements, describes the boundaries of the Increment Area,
and identifies the location and times where this ordinance and other public information concerning
the public improvements may be inspected. Following the adoption of this ordinance, the City
will deliver a certified copy of this ordinance to the County Treasurer, the County Assessor, and
the governing body of each taxing district within which the Increment Area is located.
Section 14. General Authorization and Ratification. The appropriate officers of the City
are severally authorized to take such actions and to execute such documents as in their judgment
Page 12 of 229
may be necessary or desirable to carry out the tax increment financing of the public improvements
serving the Increment Area contemplated in connection with this ordinance. All actions taken prior
to the effective date of this ordinance in furtherance of the purposes described in this ordinance
and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects.
Section 15. Severability. The provisions of this ordinance are declared to be separate and
severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal
periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any
person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be
within the limits of enforceability or validity. However, if the offending provision cannot be so
modified, it shall be null and void with respect to the particular person or circumstance, and all
other provisions of this ordinance in all other respects, and the offending provision with respect to
all other persons and all other circumstances, shall remain valid and enforceable.
Section 16. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after the date its adoption. ADOPTED by the City Council of the City of Pasco,
Washington, at a regular open public meeting thereof held on October 17. 2022, the following
Council member being present and voting in favor of the ordinance.
Page 13 of 229
I, the undersigned, City Clerk of the City of Pasco, Washington (the "City"),
hereby certify as follows:
1. The attached copy of Ordinance No. _____ (the "Ordinance") is a full, true
and correct copy of the Ordinance duly adopted at a regular meeting of the Pasco City
Council held on October 17, 2022 (the "Meeting"), as that Ordinance appears on the
minute book of the City.
2. The Ordinance is in full force and effect.
3. Pursuant to various proclamations and orders issued by the Governor of the
State of Washington, options were provided for the public to attend the Meeting
remotely, including by telephonic access and, as available, internet access, which options
provided the ability for all persons attending the Meeting remotely to hear each other at
the same time.
4. The Meeting was duly convened and held in all respects in accordance with
law, the public was notified of the access options for remote attendance via the City's
website, a quorum of the members of the Council was present throughout the meeting and
a sufficient number of members of the Council present voted in the proper manner for the
adoption of the Ordinance.
Dated: ______________________
_____________________________________
Debra Barham, CMC
City Clerk
Page 14 of 229
Exhibit A: Tax Increment Area (TIA)
Parcels in the Broadmoor TIA, Franklin County WA include:
• 115210046
• 115210039
• 115210038
• 115210037
• 115210048
• 115210045
• 115210040
• 115210042
• 115210041
• 115210036
• 115210035
• 115210034
• 115210033
• 115210032
• 115210031
Page 15 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
1
BROADMOOR
TIF PROJECT ANALYSIS
August 2022
Page 16 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
2
ACKNOWLEDGEMENTS
This Project Analysis was prepared for the City of Pasco by
Stowe Development & Strategies, LLC in association with
ECONorthwest and Gordon Thomas Honeywell
Governmental Affairs.
The Project Analysis represents a thorough and
comprehensive evaluation of a future Tax Increment
Financing program and establishment of a Tax Increment
Area for a significant and large development opportunity in
the west side of Pasco, called the Broadmoor Development.
The production of this report would not have been possible
without the participation, collaboration, and guidance from
the following individuals and groups.
Pasco City Council
• Mayor Blanche Barajas, District 1
• Mayor Pro-Tem Craig Maloney, District 6
• Councilmember Joseph Campos, District 2
• Councilmember Irving Brown, Sr., District 3
• Councilmember Pete Serrano, District 4
• Councilmember David Milne, District 5
• Councilmember Zahra Roach, At Large
City of Pasco Staff
• Dave Zabell, City Manager
• Adam Lincoln, Deputy City Manager
• Darcy Buckley, Finance Director
• Rick White, Community & Economic Services Director
• Steve Worley, Public Works Director
• Dan Ford, City Engineer
• Mike Gonzalez, Economic Development Manager
Legal and Financial Consultants
• Eric Ferguson, City Attorney
• William Tonkin & Lee Marchisio, Foster Garvey P.C.,
Bond Counsel
• Dave Trageser, DA Davidson, Bond Underwriter
• Scott Bauer, Northwest Municipal Advisors, Financial
Advisors
Page 17 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
3
ACKNOWLEDGEMENTS
Continued
Broadmoor Project Development Team
• Dale and Kathy Adams, Broadmoor Properties
(property owner)
• Timothy Ufkes, Senior Vice President/Director.
National Multi Housing Group, Marcus & Millichap
• Brian Mayer, First Vice President, National Retail
Group, Marcus & Millichap
• Jason Mattox, Principal Civil Engineer/Survey
Department Manager/Operations Manager, PBS
Tax Increment Financing Consultants
• Bob Stowe, Stowe Development & Strategies (TIF
Project Manager)
• Morgan Shook, ECONorthwest
• Briahna Murray, Gordon Thomas Honeywell
Governmental Affairs
Page 18 of 229
About Pasco 1
Introduction/Summary 2
Proposed Private Development 4
Infrastructure Needs 6
But-For-Requirement 9
Tax Increment Area 15
Tax Increment Revenue Projections 15
TABLE OF CONTENTS
Tax Increment Revenue Projections 18
Debt Service Payments and Coverage 20
Jobs Analysis 22
Financing Plan/Duration of TIA 26
Early Outreach to Taxing Districts 27
Additional Incremental Taxes 28
Risk Assessment and Mitigation Plan 30Risk Assessment and Mitigation Plan 32
Pasco TIF Team 36
Future TIF Actions 37
Timeline 38
Findings | Bottom Line 39
Appendices - Following Page 39)
Page 19 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
5
Source: Stowe Development & Strategies, 2022 based on Office of State Treasurer May 31, 2022 Memo
TIF Check List
Page 36 Name and contact information for members of the
financing team;
Pages 2 to 4, &
15
Comprehensive description of the Tax Increment Area,
including land ownership and leasing or sale arrangements;
Pages 4 to 9 A description of the Project being undertaken, in connection
with the Tax Increment Area;
Pages 6, 18 t0
21, 26, 28 to 35
Proposed budget for the Project, including the available
funding sources, expected costs, and plan of finance;
Page 38 An estimated timeline for the Project;
Pages 5, 6, &
15 to 19
Detailed assessed value growth and tax increment revenue
projections that have been prepared in connection with the
Project, including a description of the assumptions used and
the source of the projections;
Pages 4 to 6 &
15 to 17
Description of Tax Increment Area taxpayer base, and, if
possible, a breakdown by property / industry type;
Pages 20 & 26,
27 Description of the expected bond structure;
Pages 26, 27,
& 32 to 35
Description of the specific revenue pledge and revenues that
will support the debt to be issued;
Page 29 Calculations showing the Issuer’s projected debt service
coverage, based on current and expected pledged revenues;
Page 27 Calculations demonstrating compliance with the Issuer debt
limitations;
Appendices
Five years of the most recent historical and one year of
projected financial statements for the Issuer, identifying
the specific revenues that will be pledged towards
supporting debt service payments;
Pages 32 to 36 Description of potential project risk factors.
Page 20 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
6
Figure 1. Columbia River Cable Bridge
Source: Broadmoor Development, Marcus Millichap
1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
1
About Pasco: Pasco is a
thriving community of more
than 80,000 residents that has
seen substantial growth and
development over the last two
decades. Pasco’s economy is
booming. Two Amazon
industrial centers comprising
of more than 2 million square
feet are under construction in
Pasco. Due to the surrounding
agricultural region, several
major food processing
companies have a presence in
Pasco, including Lamb
Weston, Reser’s Fine Foods,
Twin Cities Foods, Simplot,
and Grimmway.
By utilizing tax increment financing, the Port of Pasco is facilitating Darigold building its largest
ever mild drying plant in Pasco, cementing the region’s status as one of the Northwest’s leading
centers for food processing. Recently the City has become a player in the booming Washington
wine industry with companies like Gordon Brothers Cellars, Fidelitas Winery, Kamiak Vineyards
and Preston Premium Wines.
The local economy benefits from the nearby Tri-Cities Airport, Interstate 182, U.S. Highway 395,
State Route 12, and the Port of Pasco, providing access to shipping along the Columbia River.
Pasco hosts several major events for the Tri-Cities area, using its historic downtown as a regional
gathering place. Downtown Pasco is home to the area’s largest farmer’s market and hosts the Fiery
Foods Festival, the Cinco de Mayo Celebration, the Sacajawea Blue Grass Festival, and Heritage
Days. The City has a seemingly limitless variety of recreational activities and is an outdoor
enthusiast’s dream. Pasco has 24 public tennis courts, 20 soccer fields, seven baseball fields, eight
softball fields, a professional indoor rodeo arena, 15+ miles of hiking/biking paths, and a
multipurpose outdoor stadium with a 10-lane all-weather running track capable of hosting state-
level football and track events. The City is also recognized for strong schools served by the Pasco
School District, including Pasco High School and Chiawana High School. Pasco offers residents
a great mix of culture, education, employment and recreation that promotes a positive lifestyle and
encourages future growth.
Page 21 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
7 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
2
Introduction/Summary
Tax Increment Financing (TIF) is a powerful economic development tool that was adopted into
law in Washington State in 2021. The Washington State Legislature created the TIF authority
through House Bill 1189 for a city, county, or port to create a tax increment area (TIA). TIFs
are used throughout the United States.
In general, our State’s TIF is a financing option that allows a public agency (city, county, or port)
to fund publicly-owned infrastructure determined necessary to encourage the envisioned private
development within a TIA designated by the public agency. As private development occurs (a
result of the public agencies investment in the identified public improvements), property values
rise, and the public agency uses the increased property tax generated by that development to pay
for the public improvement projects. After the project costs are paid, the public agency retires the
TIA. There are also inherent risks that are paired with the opportunity with any real estate
development that can dramatically impact the revenues that are projected from a development
within a TIA. This Project Analysis provides for a comprehensive examination of both the
opportunities and risks associated with the proposed TIA.
Figure 2: Basic TIF Model
Source: Stowe Development & Strategies, 2022
The City of Pasco started planning for the Broadmoor area by developing a Master Plan in 2017
for a 1600-acre site which is situated in the geographical center of the Tri-Cities (Pasco,
Kennewick and Richland). This area has unprecedented potential for development and ability to
support the areas growth projections. This master planning effort involved an analysis of a variety
of land use designations, roadway alignments and relevant best practices related to land use
planning. Over the last several years, the City has worked with the largest property owner in the
Broadmoor area (Broadmoor Properties) on a large-scale mixed-use development of 671 acres
within the Broadmoor Master planning area, now called the Broadmoor Development. Both the
City and Broadmoor Properties recognize the development of this site represents a once-in-a-
lifetime opportunity to provide significant housing, office, retail and placemaking elements while
achieving the goals of the Pasco community and region.
Page 22 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
8
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
3
Figure 3: Broadmoor Vacant Property Map
Source: Broadmoor Properties Map Recreated by Stowe Development & Strategies, June 2022
The Broadmoor Development is currently vacant land, and as such, needs significant infrastructure
such as roads and utilities. In 2019, the City of Pasco began working with property owners in the
Broadmoor area to fund and construct over 12,000 linear feet of new sewer trunk line to serve the
area at a project cost of just under $7 million through a Utility Local Improvement District (ULID)
Assessment. Remaining infrastructure needs exceed $70 million, of which a range between $33 to
$39 million is proposed to be funded with TIF. The property tax revenue estimates generated from
the anticipated private development within the TIA are sufficient to support the public
improvement costs at the end of the projected term of the TIA (25-years), requiring the City to
make interim gap funding contributions while the development stabilizes as indicated in Figure
14. It is also important to recognize that any debt the City issues in anticipation of TIF revenues,
the City will still be responsible for this debt from other revenue sources, regardless if the
anticipated development occurs. The City of Pasco has undertaken a comprehensive analysis of
evaluating: (i) the nexus between the proposed infrastructure improvements and the envisioned
developments (AKA the “But-For-Requirement”); (ii) various private development scenarios that
would occur following the City’s infrastructure investment along with financial mitigation options
that could be implemented if development is less than or takes longer than what is projected in the
various scenarios: (iii) any impacts and proposed measures regarding affordable housing, local
business community, local schools and local fire service.
Page 23 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
9 1
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
4
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Source: Broadmoor Properties Map Recreated by Stowe
Development & Strategies, June 2022
The Broadmoor Development and the ability to achieve the City’s community goals would not be
possible without TIF. The City of Pasco is enthusiastic to showcase how TIF can be used
strategically for a project site that meets the letter and spirit of Washington State’s new legislation
and achieves significant benefits for the Pasco community.
Proposed Private Development
The Broadmoor Development is a unique and large-scale development of over 451 gross acres of
vacant land that is available now for development. There is another 220 acres that is currently
being leased for sand and gravel operations until May 2025; after which it will become available
for redevelopment following reclamation. For purposes of evaluating the Broadmoor
Development, we have excluded any development potential of the sand and gravel operations and
reduced the gross acres by 25 percent to account for circulation, open space, and landscaping which
generates a net area of 328 acres. At completion, the Broadmoor Development will include the
following land uses: single family residential, multi-family residential, mixed-use, and
commercial.
Broadmoor Properties, LLC (property owner) own and are currently marketing each of the parcels
for sale. Most parcels are either closed, under contract, under letter of intent, or under discussions
between Broadmoor Properties and prospective developers. All of the developers that have been
identified to date who have either purchased property or in discussions to purchase property, are
experienced developers for that particular product type. Development permits are under review
on multiple parcels by the City, however building permits have yet to be issued. Developers are
anxiously awaiting for the adoption of the TIA before proceeding to construction.
Figure 4: Broadmoor Development Area Map
The consultant team, in collaboration with
the City and Broadmoor Properties, LLC
has generated several development
program scenarios from which to evaluate
potential property tax revenue from the
TIA as well as other tax revenue that is
generated from the expected Broadmoor
development. Market absorption
projections were based on discussion with
interested developers, Broadmoor
Properties, LLC and general knowledge of
the real estate industry. The three
Development Program scenarios created
can be categorized as follows:
Page 24 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
10
Figure 5: Broadmoor Development
Possible Conceptual Development
Renderings
Source: Broadmoor Development,
Marcus Millichap
5
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Aggressive Development Program. Key development
assumptions include:
• Absorption rate of 300 multi-family units to be
constructed each year starting in 2023 for a 16-year
build-out;
• Commercial development starting in 2024 and mostly
completed by 2030;
• Reduced gross development area by 25 percent to
account for internal circulation, open space and
landscaping;
• Absorption rate of 60 single family homes per year for
a 4-year build-out.
Moderate Development Program. Key development
assumptions include:
• Absorption rate of 150 multi-family units to be
constructed each year starting in 2023 for a 25-year
build-out;
• Reduced highest multi-family density from 45 units
per acre to 30 units per acre (reduction of 817 multi-
family units);
• Commercial development starting in 2025 and most
completed by 2031;
• Reduced gross development area by 25 percent to
account for internal circulation, open space and
landscaping;
• Absorption rate of 40 single family homes per year for
a 6-year build-out.
Conservative Development Program. Key development
assumptions include:
• No development after 2030;
• Absorption rate of 150 multi-family units to be
• constructed each year and starting in 2023 and ending
in 2030;
• Commercial development starting in 2024 and most
completed by 2030;
• Reduced gross development area by 25 percent to
account for internal circulation, open space and
landscaping;
• Absorption rate of 60 single family homes per year for
a 4 -year build-out.
The following product types and market values are assumed
in each of the above Development Program scenarios and
Page 25 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
11 6
Figure 6: Summary of Nominal Year Assessed Values and TIF Allocation Revenues
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
are based on multi-family properties and cost estimates in Franklin County and the region to
approximate the new improvement value.
• Multifamily housing: $375,000 per unit for denser product and $250,000 for less dense
product
• Senior housing: $200,000 per unit
• Single family detached housing: $600,000 per unit
• Commercial (retail/personal services): $200 per square foot
• Retail warehousing: $165 per square foot
• Medical office: $400 per square foot
Assessed property tax values for each Development Program have been projected at the following
5-year periods (nominal values per year – not discounted values). The City has determined that
the Moderate Program is the most likely to occur for purposes of this analysis. A summary of
assessed property tax values at 5-year intervals is shown in Figure 6.
Source: ECONorthwest Calculations
Infrastructure Needs
The City has identified improvements that are necessary for the development and improvements
that are to be supported by TIF. These TIF improvements were strategically located to support the
development type or product that were identified as needing the improvements most, or in other
words, those proposed developments that would not be financially viable without these
improvements.
The proposed improvements are illustrated in the Appendices section of this report. The TIF public
improvements include arterial street construction and associated infrastructure (water, sewer,
storm), and key intersections and ramp improvements to Interstate 82 that provides access and
primarily supports the commercial and mixed-use land uses within the Broadmoor Development.
The total cost for the TIF improvements is estimated to be a range between $33 to $39 million.
The higher amount allows for additional infrastructure improvements that are under consideration
based on private development needs. The City will finalize the TIF infrastructure and projected
cost as part of the TIA adoption ordinance by the Pasco City Council. For purposes of the Project
Incremental Assessed Value 2023 2028 2033 2038 2043 2048
Tax Year
Aggressive $0 $1,130,730,000 $1,681,980,000 $1,811,970,000 $1,952,010,000 $2,102,870,000
Moderate $0 $763,400,000 $1,470,220,000 $1,620,620,000 $1,761,900,000 $1,898,070,000
Conservative $0 $553,440,000 $825,660,000 $889,470,000 $958,210,000 $1,032,270,000
TIF Allocation Revenues 2023 2028 2033 2038 2043 2048
Tax Year
Aggressive $0 $2,790,000 $4,050,000 $4,270,000 $4,490,000 $4,720,000
Moderate $0 $1,880,000 $3,540,000 $3,810,000 $4,050,000 $4,260,000
Conservative $0 $1,360,000 $1,990,000 $2,090,000 $2,200,000 $2,310,000
Page 26 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
12 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
7
Analysis, we have assumed the larger scope and amount of $39 million for the proposed TIF
infrastructure. The owner of Broadmoor Development is dedicating approximately 29.3 acres of
land for the TIF improvements resulting in an average value range between $6.4 and $12.7 million
in project benefit. Additionally, the owner of the Broadmoor Development and/or future
developers of the site will be funding and constructing additional public improvements at an
estimated cost of $39 million to $45 million along with dedicating an additional 34 acres of land
to support those public improvements. The City’s TIF infrastructure will start construction in 2023
and is expected to be largely completed that same year. Design is currently occurring and is
expected to be publicly bid in late 2022 or early 2023. Where integral to the TIF funded
improvements, infrastructure funded and constructed by private development will begin in 2023
and be closely coordinated with the TIF projects. For developer funded projects not integrated
directly into the TIF improvements, they will be constructed as development occurs on each
individual parcel.
The TIF improvements are described below.
Corridors
1. Sandifur Parkway – Bedford Street to Proposed Road 105
• Widen the existing Sandifur Parkway from Bedford Street to Broadmoor Blvd;
• Fully construct Sandifur Parkway from Broadmoor Blvd east to proposed Road 105,
including but not limited to, as much as 7-lanes of roadway and frontage improvements
including curb/gutter, stormwater, sidewalk, street lighting and landscaping on the north
side and curb/gutter and stormwater on the south side.
• Construction of public utilities within the roadway prism will be included within this
corridor from Broadmoor to Road 105.
2. Broadmoor Boulevard – Interstate 182 to Burns Road
• Road widening of the existing road, west side only to, include the addition of 7-lanes of
asphalt roadway, curb/gutter, stormwater, multi-use pathway, and streetlights from
Interstate 182 to Buckingham Road;
• Road widening of the existing road, west side only to include the addition of 5-lanes of
asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and
landscaping from Buckingham Road to Burns Road;
• Utility adjustments of existing utilities is included in this corridor from Interstate 182 to
Burns Road.
3. Buckingham Drive – Broadmoor to Road 105
• Fully construct Buckingham Drive from Broadmoor Blvd west to proposed Road 105
including but not limited to 3-lanes of new roadway improvements including
curb/gutter, utilities, stormwater within the roadway prism, and sidewalk, street lighting
and landscaping on the south side of the roadway.
Page 27 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
13
Figure 7: Interstate
Improvements
Source: City of Pasco, 2022
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
8
4. Road 105 – Sandifur Parkway to Buckingham Drive
• Fully construct Road 105 from Sandifur Parkway north to proposed Buckingham
Drive including but not limited to 3-lanes of new roadway improvements including
curb/gutter, utilities, stormwater within the roadway prism, and sidewalk, street
lighting and landscaping on the east side of the roadway.
5. Road 103 – Sandifur Parkway to Buckingham Drive
• Fully construct Road 103 from Sandifur Parkway north to proposed Buckingham
Drive including but not limited to 3-lanes of new roadway improvements including
curb/gutter, utilities, stormwater within the roadway prism, and sidewalk, street
lighting and landscaping on the west side of the roadway.
Interstate Associated Improvements
6. Interchange Improvements - Interstate 182 at Road 100
• Construction of an additional (Broadmoor Blvd)
eastbound off-ramp lane, a loop ramp for north bound
Broadmoor Blvd traffic and roundabout to replace the
signal at the ramp terminals.
Intersections
7. Burns Road / Broadmoor Boulevard
• Full improvements to the existing intersection to include signalization, widening,
curb/gutter, sidewalk with ADA ramps, street lighting, striping, and landscaping;
• Utility extension and/or adjustments of existing utilities;
• This intersection will have participation in cost from other developers through a
participation technical memorandum, prepared by the City’s consultant.
8. Buckingham Drive / Broadmoor Boulevard
• Full improvements to the existing intersection including signalization, widening on the
west side, curb/gutter, stormwater, sidewalk with ADA ramps, street lighting, striping,
and landscaping;
• Utility extension and/or adjustments of the existing utilities will be included within this
intersection;
• Signalization improvements provided by Broadmoor Properties, LLC.
9. Sandifur Parkway / Broadmoor Boulevard
• Full improvements to the existing intersection including signalization, widening,
curb/gutter, sidewalk with ADA ramps, street lighting, striping, and landscaping;
• Utility extension and/or adjustments of existing utilities.
Page 28 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
14 1
City of Pasco | Broadmoor Development TIF Project Analysis July 2022 City of Pasco | Broadmoor Development TIF Project Analysis August 2022
9
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
9
10. Extended Sandifur Parkway / Proposed Road 108
• Construction of a "core" roundabout that includes all of the asphalt necessary to extend
2 feet past the proposed final toe-of-curb/gutter. This effort will also include temporary
gravel shoulder drainage swale, as well as striping and lighting, and full construction of
a center truck apron and landscaped feature and entry delineators including curb/gutter
and internal surfacing as determined;
• Frontage improvements including curb/gutter, sidewalk, stormwater, and landscaping
will be completed by adjacent parcel owners at the time of development;
• Construction of domestic water main, sanitary sewer main, and irrigation main
improvements.
11. Extended Sandifur Parkway / Proposed Road 103
• Construction of a full intersection including signalization, widening, curb/gutter,
stormwater, sidewalk with ADA ramps, street lighting, striping, and landscaping;
• Construction of domestic water main, sanitary sewer main, and irrigation main
improvements will be included within this intersection;
• Signalization provided by Broadmoor Properties, LLC.
12. Extended Sandifur Parkway / Road 105
• Construction of a core intersection, including but not limited to, as much as 3-lanes of
asphalt road surface (curb-to-curb);
• Construction of domestic water main, sanitary sewer main, and irrigation main
improvements will be included within this intersection;
• Traffic control determined at time of design.
But-For-Requirement
Washington State’s TIF law requires its local government sponsor to make the following findings:
The public improvements proposed to be paid or financed with tax allocation revenues are
expected to encourage private development within the increment area and to increase the assessed
value of real property within the increment area; (ii) Private development that is anticipated to
occur within the increment area as a result of the proposed public improvements will be permitted
consistent with the permitting jurisdiction's applicable zoning and development standards; (iii) The
private development would not reasonably be expected to occur solely through private investment
within the reasonably foreseeable future without the proposed public improvements; and, (iv) The
increased assessed value within the increment area that could reasonably be expected to occur
without the proposed public improvements would be less than the increase in the assessed value
estimated to result from the proposed development with the proposed public improvements. These
findings (specifically Sections i, ii, and iv) are commonly referred to as the “But-For
Requirement”. The name comes from the assertion that private development would not occur but-
for the use of TIF. This requirement is a foundational element of TIF which directs public tax
dollars generated by the development to only those projects that need it; thereby, avoiding a gift
of tax dollars in the form of infrastructure funding paid for by the local government that should
have been funded by the developer. Although TIF is new to Washington State governments, the
But-For-Requirement and associated analysis is not. Many local governments that have invested
Page 29 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
15
Source: Marcus Millichap
1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
10
Source: Marcus Millichap
in infrastructure as part of economic development projects have examined the public agencies
return on its infrastructure investment from the generation of on-going tax revenues associated
with new development. Additionally, most local governments’ infrastructure demand exceeds its
revenue capacity, forcing local governments to make priority decisions regarding infrastructure
projects that get funded with tax dollars and determining which projects can be paid for by
developers. The But-For-Requirement for TIF formalizes the analysis and requires the local
government sponsoring TIF to provide convincing evidence showing that tax dollars from the TIA
are necessary to make the development possible.
If a proposed development would occur without TIF, public tax dollars should not be used because
it will cost taxpayers more than it should for the resulting development or growth. However, if TIF
is used to encourage a development that would not otherwise happen, the tax base can be increased.
A larger tax base helps pay for needed services and can control the growth of new taxes. The But-
For-Requirement is critical as a means to determining the proper use for public tax dollars.
The following criteria has been developed to evaluate the Broadmoor Development and provide
sufficient evidence to support or deny TIF for projects based on the But-For-Requirement.
Lack of Growth and/or History of Development: One measure to determine if TIF is appropriate
is to evaluate if there has been any growth in the region that is similar with the type of development
desired or envisioned. There is no project in the Tri-Cities that is remotely close to the scope and
scale of the Broadmoor Development. The commercial development that has occurred in the City
of Pasco did so based on locations where key infrastructure (streets, water, sewer) were already in
place. Broadmoor Development’s planned commercial buildings would likely not be built in
today’s economic environment without the proposed TIF Infrastructure.
Figure 8: Park Place Apartments
In terms of multi-family construction,
the City of Pasco has not yet seen any
development above 3-stories.
Construction costs for multi-family
developments above three-stories, due
to construction standards/requirements
are significantly higher and require
higher rents than the market is currently
able to support. There is only multi-
family development above three-
stories in the Tri-Cities area.
Constructed in 2021, the Park Place Apartments, situated in Richland, WA, has 106 units among
4-stories with one level of below grade parking (less than 30 parking spaces). Some retail is also
provided under the 106 residential units and within two separate one-story buildings.
The average construction costs for newer multi-family housing in the Tri-Cities ranges from $260
to $350 per square foot depending on the type of unit being constructed. The average rents in the
Tri-Cities is $1.90 to $2.30 per square foot, which provides sufficient revenue to support a cost per
square foot of between $180 to $220, resulting in the likely scenario that development above three-
Page 30 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
16
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
11
stories will not occur until rents are higher or construction costs decrease. Rents have been rising
in the region, with nominal rents increasing 20% in the past decade according to CoStar (a
commercial real estate data firm). With continued tight vacancies, it is likely that upward pressures
on prices will continue fueling the demand for new housing units in the near future at market
clearing prices for new construction. Adding in any of the cost of the infrastructure proposed to be
funded by TIF to the construction cost of the development would only make any of the proposed
five, six, and seven-story and mixed-use construction for the Broadmoor Development project
even more unlikely, counteracting price gains in apartment rents.
Developer Commitment: Another measure to evaluate if TIF should be used is from the lack of
any private vertical development commitment to build a project without the infrastructure first
being in place. Stated differently, the private sector will only build the project if the TIF
infrastructure is built and funded with public tax dollars. Over the last year the City has been
working with Broadmoor Properties (property owner) and prospective purchasers/developers of
two key sites along Broadmoor Boulevard, comprising of over 50 acres of commercial
development. Both private developments have confirmed as part of purchase and sale agreements
with Broadmoor Properties that their development will not occur unless the proposed TIF
improvements are publicly funded and constructed. Other discussions with developers interested
in commercial and mixed-use type development envisioned for the Broadmoor Development site
have echoed a similar requirement.
Impact of Financial Feasibility | Residual Land Value Analysis
Another way to evaluate the But-For-Requirement is to examine how the cost of the public
infrastructure impacts the financial viability of real estate. To inform the evaluation of this
condition, ECONorthwest completed an economic analysis that reflects the developer’s decision-
making process and cash flow equation. The findings from this analysis bear on the “but-for” test
by including information on the impact of financial returns. The central question is: How does the
public provision of the infrastructure solve for a value deficit to support real estate investment? In
other words, could development happen if the private development was required to self-fund the
proposed public improvements.
To understand the potential for development under TIF (and without TIF), ECONorthwest
employed an Excel-based financial model that used the Residual Land Value methodology. The
model considered the prototypes, entitlement limits, open space and right-of-way needs, and the
financial market conditions (e.g., rents, operating and construction costs, and investment return
requirements). Residual land value (RLV) is an estimate of what a developer would be able to pay
for land given:
• The property’s income from rental or sales revenue;
• The cost to build as well as to operate the building;
• The investment returns needed to attract capital for the project.
In other words, it is the budget that developers have remaining for land after all other development
constraints have been analyzed.
The RLV approach has several advantages:
Page 31 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
17 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
12 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
12
• It does not rely on land prices as an input. Rather, observed land prices can be compared
with the model outputs to help calibrate the model and ensure it reflects reality;
• It can assess the impacts of changes to the development code and accompanying
development incentives because these policies principally affect land value, especially in
the short run.
Each of the development concepts was analyzed using this RLV approach. The results from this
method describe a general analysis of prototypes in the Broadmoor area and do not consider the
many potential unique conditions that could be a factor in development feasibility (e.g., increased
predevelopment costs, low land basis from longtime land ownership, unique financing, etc.).
For these reasons, a RLV analyses should be thought of as a strong indicator of the relative
likelihood of feasibility, rather than an absolute measure of return to the investor or developer.
Though the RLV estimate is relevant for developers seeking to purchase land for new
development, it is also applicable for understanding the development decisions of those that
already own land. In the case where the property owners have owned the land for many years such
that the mortgage/debt is now paid off, an RLV estimate of $0 would reflect a set of development
constraints that could be feasible. The Broadmoor area has experienced recent land transactions
which helps the analysis compare and understand the value of maximum and base entitlements.
For the Broadmoor area, ECONorthwest used the following methodology to compare the budget
remaining for land between prototypes built under multiple hypothetical base entitlements and
prototypes built under the proposed maximum entitlements. To complete this analysis,
ECONorthwest:
1. Compiled financial inputs such as rent, operating costs, and development costs for each
type of development product.
2. Defined the available building areas of the prototypes (for this analysis a mixed-use/
multi-family and commercial retail center are used as examples of projects that have
not been built in the study area and could be supported with TIF investments).
3. Used the pro forma to calculate the revenue from the leasable square feet and then
removed the vacancy and operating costs (such as taxes, insurance, maintenance,
management, select utilities) to arrive at an annual net operating income (NOI).
4. Derived the value from each NOI by dividing by the respective return on cost threshold
5. Summed those values to arrive at a total value for each development concept.
6. Calculated the total development costs by applying the cost per square foot values to
the gross square feet for each product type
7. Summed those values to a total hard cost and calculated the soft cost, contingency, and
developer fee to arrive at the total development cost.
8. Calculated the land budget (also known as the RLV) by subtracting the total
development cost from the total value
9. Divided the total land budget by the site square feet to arrive at a residual land value
per square foot.
10. Compare RLV of a baseline scenario where the project is not encumbered with a pro-
rata share of the $39 million in TIF infrastructure to one where they are encumbered
with it.
Page 32 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
18 13
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
13
The TIF improvements are estimated to cost $39 million and are concentrated at the southern end
of the site. The owner of the Broadmoor Development (and/or future developers of the site) will
be funding and constructing additional public improvements at an estimated cost of $39 million to
$45 million along with dedicating an additional 32 acres of land to support those public
improvements (these values are in addition to the $39 million in proposed TIF projects).
Currently, land values in the area are about $1 per square foot of land as assessed by the Franklin
County Assessor. These values reflect the current use of the land without any of the contemplated
TIF projects. Raw land that has sold in the immediate area in recent time has ranged between $2
to $9 per square foot on land, depending on where these parcels are located and the relative
proximity to the TIF improvements (higher values where sites are already served by infrastructure
and lower where there is a deficit). The summary below compares three different land value
perspectives from both the purchase price and the RLV analysis.
• Current Land Value: This is the range of sales prices of recent raw land sales within the
TIA that are closer to the sites most impacted by needed improvements that could be funded
by TIF.
• Baseline RLV: This RLV estimates what the current land value might be under considering
projected revenues and costs.
• Impacted RLV: This RLV estimates the effect of the land having to account for the $39
million in infrastructure costs on top of the other $39-$45 million in infrastructure costs
that would be borne by the project.
• Impact on Feasibility: In the RLV analysis, financial feasibility is expressed as a land
value. From a developer’s perspective, it frames what they can pay for land. The percent
change refers to the change in the absolute value of the baseline to impacted RLV. A
negative value in this case, means that the additional cost of the TIF infrastructure
(allocated on per square foot basis of the building lot) proportionally reduces the land
budget for the development.
Figure 9: Summary of RLV Analysis
Source: ECONorthwest Calculations
Figure 9 summarizes the results of the RLV analysis. The table shows the type of prototype
analyzed and some basic parameters of their development conditions. The Baseline RLV shows
the land residual if the project does not have to bear the cost of the TIF infrastructure. In this case,
the values are lower than where land is trading in the area and reflect financial conditions that may
not support development in the near future and are uncertain given current macroeconomic
conditions. This also is congruent with the observation that no development has taken place in the
area, in part due to the deficit of infrastructure.
In comparison, the Impacted RLV (with the incorporation of the pro rata share of the TIF
infrastructure is more negative and reflects an added value that the land must bear for the cost of
the infrastructure – approximately adding almost $3 of negative land value due to the need to
provide the infrastructure. This in theory lowers the value of land and may put pressure on financial
Use Protoype Current Land Baseline RLV Impacted RLV Impact on Feasibility
Mixed Use Multifamily 4 story, 100 units $5.00-$5.50 -$1.10 -$3.80 -245%
Commercial 20,000 sqft retail $5.00-$5.50 $2.70 -$0.10 -104%
Page 33 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
19
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
14
viability of development, ultimately impacting either the rate, quality, or timing of development
and is reflected in the impact on feasibility. In the case of a mixed-use project (retail and multi-
family), there is a 245% reduction in the RLV and 104% reduction for a commercial retail project.
The ultimate impact of this reduction and the magnitude on these types of projects is the inability
to secure land at market prices, and therefore enable their production. This type of RLV analysis
is not intended to be definitive with respect to the “but-for” test and should be understood as
reflecting the challenging conditions that development in the area currently faces along with the
added challenge of supporting needed infrastructure. In summary, these additive figures
demonstrate that any development scenario is would be very challenging without the TIF
infrastructure investments.
Expected Development Without TIF Improvements:
Because the Interstate 182 interchange is near capacity and commercial and mixed-use
development would likely not invest in the Broadmoor Development without the proposed TIF
infrastructure improvements, the development forecast is significantly limited. Without
TIF improvements, development of approximately 240 single family homes (market absorption of
60 homes per year) and 410 multi-family homes (market absorption of 205 homes per year) would
likely be built based on development interest. These homes gain access to their development from
Burns Road and would not necessitate the development of any improvements funded by TIF. The
projected assessed value of these developments with the use of TIF is provided in Figure 10 below.
Figure 10: Comparison of Assessed Value Growth Between TIF Scenarios and No TIF
Source: ECONorthwest calculations, 2022
Summary of “But-For-Requirement”
Based on the above criteria, the proposed Broadmoor Development could not occur without the
identified TIF infrastructure improvements. Additionally, the assessed values from projected
private development without any TIF improvements would be less than the increase in assessed
values from private development with the TIF improvements. It is important to reiterate that the
Broadmoor Development still requires additional infrastructure investment beyond those
improvements identified to be funded with TIF. In fact, private development will be responsible
for infrastructure improvements estimated between $39 million to $45 million compared to the
$39 million identified for the TIF improvements (see Risk Assessment and Mitigation Plan below).
Additionally, land valued between $5.5 million and $ 10.6 million will be dedicated by Broadmoor
Properties to the City for its infrastructure improvements.
Incremental Assessed Value 2023 2028 2033 2038 2043 2048
Tax Year
Aggressive $0 $1,130,730,000 $1,681,980,000 $1,811,970,000 $1,952,010,000 $2,102,870,000
Moderate $0 $763,400,000 $1,470,220,000 $1,620,620,000 $1,761,900,000 $1,898,070,000
Conservative $0 $553,440,000 $825,660,000 $889,470,000 $958,210,000 $1,032,270,000
No TIF $0 $323,500,000 $348,500,000 $375,440,000 $404,450,000 $435,710,000
Page 34 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
20 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
15
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Tax Increment Area
The TIA includes the entire Broadmoor Development site of approximately 671 acres. With the
exception of the gravel and sand operation parcels, the entire site is vacant. The assessed valuation
of the TIA in 2022 is approximately $30 million (Figure 12), well below either the $200 million
assessed valuation threshold or 20 percent of the City of Pasco’s total assessed valuation of
$6,502,962,700 (0.46% of total valuation).
Tax Increment Revenue Projections
Overview of TIF Allocation Revenues
Following guidance issued by the Washington State Department of Revenue, the analysis estimates
the apportionment of taxes to the TIA. These revenues are available to the sponsoring local
jurisdiction for funding of the identified public infrastructure projects (that are named in the
ordinance). Under the TIF legislation, only certain regular levies are available to the TIA. Using
2022 levy rates in the Broadmoor TIA, only $2.62 of the $8.80 total levy, approximately 30%,
would be available (Figure 11).
Figure 11: Overview of Levy Rates and TIF Levy Rate Allocation
Source: ECONorthwest and Franklin County Assessor
Since these are regular levies, the taxes must conform with the constitutional 1% limit as well as
the $5.90 aggregate limits. Both parts of the State School levy as well as local school district excess
levies are excluded. In addition, any taxes levied by port districts for the purpose of making
payment on bonds would be excluded.
Current 2022
Levy Taxes
Exempt: State
Schools
Exempt: Excess
and Other Levies
Available for TIF
allocation
Total $8.7952 $2.8043 $3.3671 $2.6238
State
Part 1 $1.8229 $1.8229 $0.0000
Part 2 $0.9814 $0.9814 $0.0000
Franklin County
Regular_Current Expense $0.9046 $0.9046
Regular_Veterans Aid $0.0113 $0.0113
Regular_Mental Health $0.0250 $0.0250
Bond Fund_Courthouse $0.0638 $0.0638 $0.0000
Port of Pasco
General Fund $0.2177 $0.2177
Bond Fund $0.0000 $0.0000 $0.0000
City of Pasco $1.4653 $1.4653
Pasco School District
Pasco Enrichment $1.4557 $1.4557 $0.0000
Pasco Bond $1.8476 $1.8476 $0.0000
Pasco Building $0.0000 $0.0000
Page 35 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
21 1
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
16
Broadly, TIF in Washington allocates a portion of incremental property taxes to the TIA based on
the amount of assessed value added to the TIA. This means that each taxing district in the TIA will
receive that portion of its regular property taxes produced by the rate of tax levied by the taxing
district based on the assessed value of real property located in the area for taxes imposed in the
year that the TIA was created. This amount will flow to the member districts for the period that
the TIA is in place. The local government that created the TIA will receive a portion of the regular
property taxes levied by each taxing district based off the increment value within the increment
area. For the local government that created the TIA, this includes their own portion of their regular
levy. Property taxes from the TIA begin on the calendar year following the passage of the
ordinance. The county treasurer will distribute these funds to the agency that created the TIA.
TIA Allocation Revenue Modeling
New incremental development in the TIA will drive future growth in incremental assessed value.
These values will then be multiplied by the levy rate in the respective years to estimate the amount
of TIA allocation revenues. To accomplish this, there are four separate analyses that must be
completed:
• Forecast incremental TIA assessed value. Based on the development program, the future
assessed value is estimated by assigning market-based improvement prices based on the
land use and size of the proposed development.
• Forecast jurisdiction assessed value. Outside of growth in the incremental assessed value
in the TIA, it is necessary to forecast growth in the City’s overall assessed value (not
counting the incremental growth in the TIA.
• Forecast highest lawful levy. For each taxing jurisdiction in the TIA, future levies must
be estimated. To do so, the amount of new construction, other add-on value, 101% limit
factor, total levy limit, and the maximum allowable levy must be taken into consideration.
From that interplay, it is possible to estimate what the given levy will be for any respective
jurisdiction in the future.
• Forecast levy rates. Once the levy and assessed value are known in future years, it is
possible to calculate the levy rate (divide levy by thousands of assessed value). TIA
allocations are made by multiplying the levy rate by the incremental TIF assessed value.
To model TIA allocation property tax revenues, a 25-year cash flow model was created to reflect
development over time and applied the appropriate property tax base productivity and property tax
rates to estimate the stream of future property tax revenues. Additional assumptions in the forecast
modelling include:
• The City’s assessed valuation growth is assumed to grow at a rate of 1.5% a year.
• Once new built structures are placed on the tax assessments, these properties are also
assumed to grow at a real rate of 1.5% a year (inflation adjusted) after their initial
assessment.
• Outside of new construction growth within the tax increment area, new construction within
the City is limited to no more than 1.2% of the City’s assessed value base.
Page 36 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
22 16 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
17
TIA Allocation Results
Assessed Value in the TIA.
Figure 12 identifies the parcels in the TIA and their current valuation. Based on 2022 values for
2023 taxes, the district has approximately $30 million in real property assessed value. The $30
million figure is below the assessed value cap of the lesser of 20% of the city’s assessed value or
$200 million.
Figure 12: Current Parcels in TIF District and 2023 Valuation
Source: Franklin County Assessor, 2022
Assumptions on Incremental Assessed Value Growth
Using assumptions identified in the Development Program for the Aggressive, Moderate, and
Conservative growth scenarios, future assessed values of those improvements are estimated and
serve as a foundation for the expected TIA allocation revenues.
Parcel 2023 Land Assessed
Value
2023 Improvement
Assessed Value
2023 Total Assessed
Value
115210046 $4,001,300 $0 $4,001,300
115210039 $1,522,400 $0 $1,522,400
115210038 $1,856,300 $0 $1,856,300
115210037 $2,217,200 $0 $2,217,200
115210048 $344,100 $0 $344,100
115210045 $1,843,600 $0 $1,843,600
115210044 $2,947,200 $0 $2,947,200
115210043 $1,455,300 $0 $1,455,300
115210040 $2,939,300 $0 $2,939,300
115210042 $1,023,500 $0 $1,023,500
115210041 $668,700 $0 $668,700
115210036 $1,477,700 $0 $1,477,700
115210035 $1,329,000 $0 $1,329,000
115210034 $2,780,500 $0 $2,780,500
115210033 $1,223,800 $0 $1,223,800
115210032 $1,232,300 $0 $1,232,300
115210031 $1,234,800 $0 $1,234,800
Total $30,097,000 $0 $30,097,000
Page 37 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
23
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
17 1 17 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
18
TIA Allocation Revenues
The following table (Figure 13) summarizes the present value of 25 years of TIA allocation
revenues that would flow to the Broadmoor TIA created by the City of Pasco (first year of revenues
is 2025). The revenues are discounted at a rate of 4.5% to approximate the City’s cost of capital
(debt and issuance costs). Figure 13 shows that the Aggressive scenario can accommodate
approximately a present value of $50.9 million in debt, whereas the Moderate scenario can
accommodate $42.3 million in debt and Conservative scenario can accommodate $25 million in
debt.
Figure 13: Present Value of TIF Allocation Revenues
Source: ECONorthwest calculations, 2022
Figure 13A summarizes the incremental assessed value and respective levy rates from 2023 to
2048 where the TIA is assumed to be in place for the Moderate Scenario as an illustration of how
the base value, increment value, and levy rate are forecasted to grow under the development
assumptions. Subsequently, the total property taxes for the contributing tax levies are shown with
allocated TIF revenues and the remaining portion that would continue to flow to the taxing
jurisdiction split out from each other.
Jurisdiction Aggressive Moderate Conservative
City $28,390,000 $23,630,000 $13,940,000
County $18,250,000 $15,190,000 $8,980,000
Port District $4,220,000 $3,510,000 $2,080,000
Total $50,860,000 $42,330,000 $25,000,000
Page 38 of 229
24
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
19
Figure 13A: TIF Allocation Revenues – Moderate Scenario
City of Pasco
Assessment Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Base Value $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000
Increment Value 0 $0 $150,588,381 $306,221,473 $551,095,153 $763,398,629 $936,894,594 $1,025,273,701 $1,245,609,229 $1,384,588,893 $1,470,221,781 $1,499,156,778 $1,528,653,112
Levy Rate $1.40758 $1.40073 $1.39397 $1.38736 $1.38095 $1.37468 $1.36849 $1.36233 $1.35624 $1.35017 $1.34411 $1.33802 $1.33193
Total Property Tax $42,364 $42,158 $251,869 $466,594 $802,596 $1,090,802 $1,323,322 $1,437,760 $1,730,162 $1,910,071 $2,016,589 $2,046,177 $2,076,144
Tax Allocated to TIF $0 $0 $209,915 $424,839 $761,034 $1,049,428 $1,282,134 $1,396,758 $1,689,343 $1,869,435 $1,976,135 $2,005,907 $2,036,057
Tax Allocated to City $42,364 $42,158 $41,954 $41,755 $41,562 $41,374 $41,188 $41,002 $40,819 $40,636 $40,454 $40,270 $40,087
Franklin County
Assessment Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Base Value $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000
Increment Value $0 $0 $150,588,381 $306,221,473 $551,095,153 $763,398,629 $936,894,594 $1,025,273,701 $1,245,609,229 $1,384,588,893 $1,470,221,781 $1,499,156,778 $1,528,653,112
Levy Rate $0.90821 $0.90380 $0.89941 $0.89506 $0.89073 $0.88640 $0.88208 $0.87780 $0.87353 $0.86928 $0.86505 $0.86084 $0.85665
Total Property Tax $27,334 $27,202 $162,509 $301,027 $517,684 $703,351 $852,965 $926,407 $1,114,367 $1,229,755 $1,297,845 $1,316,436 $1,335,296
Tax Allocated to TIF $0 $0 $135,440 $274,088 $490,876 $676,674 $826,417 $899,988 $1,088,077 $1,203,592 $1,271,810 $1,290,527 $1,309,513
Tax Allocated to County $27,334 $27,202 $27,069 $26,939 $26,808 $26,678 $26,548 $26,419 $26,291 $26,163 $26,035 $25,909 $25,782
Port of Pasco
Assessment Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Base Value $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000
Increment Value $0 $0 $150,588,381 $306,221,473 $551,095,153 $763,398,629 $936,894,594 $1,025,273,701 $1,245,609,229 $1,384,588,893 $1,470,221,781 $1,499,156,778 $1,528,653,112
Levy Rate $0.21009 $0.20907 $0.20805 $0.20705 $0.20604 $0.20504 $0.20404 $0.20306 $0.20207 $0.20108 $0.20010 $0.19913 $0.19816
Total Property Tax $6,323 $6,292 $37,592 $69,634 $119,752 $162,701 $197,310 $214,298 $257,778 $284,469 $300,220 $304,521 $308,883
Tax Allocated to TIF $0 $0 $31,330 $63,402 $113,550 $156,529 $191,168 $208,187 $251,696 $278,417 $294,198 $298,527 $302,919
Tax Allocated to Port $6,323 $6,292 $6,262 $6,232 $6,201 $6,171 $6,141 $6,111 $6,082 $6,052 $6,023 $5,993 $5,964
City of Pasco
Assessment Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Base Value $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000
Increment Value $1,558,721,556 $1,589,373,092 $1,620,618,910 $1,652,470,411 $1,684,939,216 $1,710,213,304 $1,735,866,504 $1,761,904,501 $1,788,333,069 $1,815,158,065 $1,842,385,436 $1,870,021,217 $1,898,071,536
Levy Rate $1.32583 $1.31973 $1.31363 $1.30754 $1.30146 $1.29539 $1.28933 $1.28328 $1.27725 $1.27123 $1.26523 $1.25925 $1.25328
Total Property Tax $2,106,503 $2,137,263 $2,168,435 $2,200,029 $2,232,053 $2,254,379 $2,276,907 $2,299,641 $2,322,585 $2,345,744 $2,369,120 $2,392,719 $2,416,542
Tax Allocated to TIF $2,066,599 $2,097,543 $2,128,899 $2,160,676 $2,192,883 $2,215,392 $2,238,102 $2,261,018 $2,284,144 $2,307,484 $2,331,041 $2,354,819 $2,378,821
Tax Allocated to City $39,903 $39,720 $39,536 $39,353 $39,170 $38,987 $38,805 $38,623 $38,441 $38,260 $38,080 $37,900 $37,720
Franklin County
Assessment Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Base Value $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000
Increment Value $1,558,721,556 $1,589,373,092 $1,620,618,910 $1,652,470,411 $1,684,939,216 $1,710,213,304 $1,735,866,504 $1,761,904,501 $1,788,333,069 $1,815,158,065 $1,842,385,436 $1,870,021,217 $1,898,071,536
Levy Rate $0.85248 $0.84833 $0.84420 $0.84009 $0.83600 $0.83193 $0.82788 $0.82385 $0.81984 $0.81585 $0.81188 $0.80792 $0.80399
Total Property Tax $1,354,429 $1,373,838 $1,393,528 $1,413,503 $1,433,766 $1,447,813 $1,462,004 $1,476,338 $1,490,819 $1,505,448 $1,520,225 $1,535,152 $1,550,232
Tax Allocated to TIF $1,328,772 $1,348,306 $1,368,120 $1,388,219 $1,408,605 $1,422,775 $1,437,087 $1,451,543 $1,466,145 $1,480,893 $1,495,790 $1,510,836 $1,526,034
Tax Allocated to County $25,657 $25,532 $25,408 $25,284 $25,161 $25,039 $24,917 $24,795 $24,675 $24,555 $24,435 $24,316 $24,198
Port of Pasco
Assessment Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Base Value $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000 $30,097,000
Increment Value $1,558,721,556 $1,589,373,092 $1,620,618,910 $1,652,470,411 $1,684,939,216 $1,710,213,304 $1,735,866,504 $1,761,904,501 $1,788,333,069 $1,815,158,065 $1,842,385,436 $1,870,021,217 $1,898,071,536
Levy Rate $0.19720 $0.19624 $0.19528 $0.19433 $0.19338 $0.19244 $0.19151 $0.19057 $0.18965 $0.18872 $0.18780 $0.18689 $0.18598
Total Property Tax $313,309 $317,799 $322,354 $326,974 $331,662 $334,911 $338,194 $341,510 $344,859 $348,243 $351,661 $355,115 $358,603
Tax Allocated to TIF $307,374 $311,893 $316,476 $321,126 $325,841 $329,119 $332,430 $335,774 $339,152 $342,563 $346,009 $349,490 $353,005
Tax Allocated to Port $5,935 $5,906 $5,877 $5,849 $5,820 $5,792 $5,764 $5,736 $5,708 $5,680 $5,652 $5,625 $5,597Page 39 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
25 20
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Debt Service Payments and Coverage
Assuming the City issues $39 million in debt sometime in late 2022 or early 2023 to fund the
infrastructure projects, it will need to service that debt with available resources regardless if the
anticipated private development occurs. However, given the nature of TIF, incremental revenues
early in the TIF period may not be sufficient to service the debt as private development
construction will be in progress it will take time to build incremental assessed values contributions
that ultimately determine the TIF allocation revenues estimated in this report. Figure 14
summarizes potential debt service payments (assuming equal debt service) relative to the different
TIF tax allocation revenue scenarios that would flow to the City. Until private development catches
up and matches the City’s debt service payment, it will need to cover these early deficits by using
revenues identified in this Project Analysis (see Additional Incremental Tax and Impact
Assessment and Mitigation Sections below) or structure their debt payments in line with their
revenue stream.
Page 40 of 229
26
City of Pasco | Broadmoor Development TIF Project Analysis August 2022 19
Figure 14: Summary Equal Debt Payments and TIF Revenue Allocations
Source: ECONorthwest calculations, 2022
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
21
TIF Allocation Revenues
Tax Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Aggressive
TIF Revenues $0 $0 $680,000 $1,480,000 $2,300,000 $2,790,000 $3,160,000 $3,580,000 $3,860,000 $3,970,000 $4,050,000 $4,100,000 $4,140,000
TIF Debt Service $0 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000
Surplus/Deficit $0 ($2,630,000)($1,950,000)($1,150,000)($330,000)$160,000 $530,000 $950,000 $1,230,000 $1,340,000 $1,420,000 $1,470,000 $1,510,000
Tax Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Aggressive
TIF Revenues $4,180,000 $4,220,000 $4,270,000 $4,310,000 $4,350,000 $4,400,000 $4,440,000 $4,490,000 $4,530,000 $4,580,000 $4,620,000 $4,670,000 $4,720,000
TIF Debt Service $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000
Surplus/Deficit $1,550,000 $1,590,000 $1,640,000 $1,680,000 $1,720,000 $1,770,000 $1,810,000 $1,860,000 $1,900,000 $1,950,000 $1,990,000 $2,040,000 $2,090,000
Tax Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Moderate
TIF Revenues $0 $0 $380,000 $760,000 $1,370,000 $1,880,000 $2,300,000 $2,500,000 $3,030,000 $3,350,000 $3,540,000 $3,590,000 $3,650,000
TIF Debt Service $0 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000
Surplus/Deficit $0 ($2,630,000)($2,250,000)($1,870,000)($1,260,000)($750,000)($330,000)($130,000)$400,000 $720,000 $910,000 $960,000 $1,020,000
Tax Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Moderate
TIF Revenues $3,700,000 $3,760,000 $3,810,000 $3,870,000 $3,930,000 $3,970,000 $4,010,000 $4,050,000 $4,090,000 $4,130,000 $4,170,000 $4,220,000 $4,260,000
TIF Debt Service $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000
Surplus/Deficit $1,070,000 $1,130,000 $1,180,000 $1,240,000 $1,300,000 $1,340,000 $1,380,000 $1,420,000 $1,460,000 $1,500,000 $1,540,000 $1,590,000 $1,630,000
Tax Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Conservative
TIF Revenues $0 $0 $270,000 $640,000 $970,000 $1,360,000 $1,800,000 $1,870,000 $1,950,000 $1,970,000 $1,990,000 $2,010,000 $2,030,000
TIF Debt Service $0 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000
Surplus/Deficit $0 ($2,630,000)($2,360,000)($1,990,000)($1,660,000)($1,270,000)($830,000)($760,000)($680,000)($660,000)($640,000)($620,000)($600,000)
Assessment Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Conservative
TIF Revenues $2,050,000 $2,070,000 $2,090,000 $2,110,000 $2,130,000 $2,160,000 $2,180,000 $2,200,000 $2,220,000 $2,240,000 $2,270,000 $2,290,000 $2,310,000
TIF Debt Service $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000 $2,630,000
Surplus/Deficit ($580,000)($560,000)($540,000)($520,000)($500,000)($470,000)($450,000)($430,000)($410,000)($390,000)($360,000)($340,000)($320,000)Page 41 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
27
Figure X: Broadmoor Development Possible Conceptual Development Rendering
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
22
Jobs Analysis
Figure 15: Broadmoor Development Possible Conceptual Development Rendering
Source: Broadmoor Development, Marcus Millichap
The job analysis considers two sources of employment tied to the Broadmoor TIA. First, the
construction of the development program will create jobs in the construction industry. These jobs
will occur during the construction and are therefore “one-time” events. In contrast, once the
buildings are constructed, commercial-oriented buildings will be occupied by firms and workers
engaged in different sectors of the economy. These jobs are “on-going”, meaning they are
permanent on the condition of occupation within the TIA. The following sections summarize these
job estimates, and the methods used to derive them.
Construction Employment
Construction of the development over the anticipated build-out period would create temporary
construction jobs within the region and state. The jobs estimated in Figure 1 are derived by using
the 2022 value of construction investment for the Development Program Scenarios (Aggressive,
Moderate, Conservative) and interpolating them into the Washington State Office of Financial
Management’s Input/Output model. The model relates spending in an industry sector to the
number of jobs that would be directly supported by that same investment. While the model
estimates the number of jobs generated in the state of Washington, it is likely that most of these
workers would come from the immediate Tri-Cities region. The region is rapidly growing in
population, meaning many of these jobs would be additive to existing jobs within the region.
Ultimately, the income earned by workers would bring additional spending to the City that would
not have otherwise occurred. ECONorthwest estimates the total number of construction jobs based
on the spending by scenario. The number of jobs at any given time would vary depending on how
development buildings are phased and developed. As expected, the scale of the investment in the
Page 42 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
28 1
City of Pasco | Broadmoor Development TIF Project Analysis June 2022 City of Pasco | Broadmoor Development TIF Project Analysis August 2022
23
Aggressive scenario produces the largest amount of construction jobs, in this case, 6,600
construction jobs.
Figure 16: Construction Jobs
Source: ECONorthwest calculations and Office of Financial Management Input/Output Model, 2022.
On-going Employment
Based on the types of uses and square feet of building area, ECONorthwest estimated the potential
number of jobs the development would support when built. These numbers are derived from ratio
estimates building area to number of employees. The U.S. Energy Information Administration
releases data from the 2018 Commercial Buildings Energy Consumption Survey (CBECS) that
provides building characteristics information for commercial buildings in 2018 in the U.S. (the
latest year of data). The data contain the average building square foot per worker by building use.
Using the amount of planned development square footage by building use at full buildout of the
scenarios, these ratios can be applied (less a vacancy rate of 5 percent) to estimate the number of
on-going jobs. The Moderate scenario, by measure of having more commercial space than either
of the other scenarios has the largest number of on-going jobs at 1,170.
Figure 17: On-going Jobs
Source: 2018 CBECS, Table B1. Summary table: total and means of floorspace, number of workers, and hours of
operation, 2018 (Release date: September 2021)
Impact Assessment and Mitigation
Affordable Housing: The Broadmoor Development will provide additional single family and
multi-family housing options as part its development program. As the property is vacant, no
residential housing will be displaced from the development. It is expected that as additional
housing is built, demand is lowered and housing costs are reduced over the long-term and become
more affordable. The increased number of units stemming from this development will help house
the growing population base, meeting the demand with supply. Without additional housing in the
Tri-Cities region, affordability will only become increasingly challenging. Additionally, the City
has partnered with the County to ensure affordability levels for units that the market cannot
support.
The City of Pasco has developed the Community Housing Improvement Program (CHIP) for the
purpose of expanding affordable home ownership opportunities by offering financial assistance
for low to moderate income home buyers in Pasco with priority given to targeted neighborhoods.
The Pasco City Council formed the Pasco Housing Authority in 1942 to provide for safe affordable
housing options. In 1981, Franklin County officials approached the Pasco City Council with a
proposition to form a joint housing authority designed to meet the needs of not only low-income
Aggressive Moderate Conservative
Construction Jobs 6,600 5,650 1,880
Investment (millions)$1,867 $1,600 $533
Employment Uses Jobs: Aggressive Jobs: Moderate Jobs: Conservative Mean SqFt/Work
Retail Warehousing 130 130 130 1,589
Commercial 340 400 150 992
Medical Office 640 640 0 573
Total Jobs 1,110 1,170 280
Page 43 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
29
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
26
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
24
individuals within City limits, but those in the rest of Franklin County, as well. A joint housing
authority was born and named the Housing Authority of the City of Pasco and Franklin County
(HACPFC).
HACPFC works to provide housing and housing assistance to more than 600 families. The U.S.
Department of Housing and Urban Development provides Public Housing subsidy for 280 units
owned by and managed by HACPFC. HACPFC owns, and serves as landlord for, 68 housing units
not subsidized by HUD. The rent is kept affordable for families earning between 50% and 80% of
median income for the Tri-Cities area. In 2014, HACPFC constructed a 38-unit tax credit property
named Varney Court.
HACPFC also administers 318 Housing Choice Vouchers (HCV). The HCV program provides
rental assistance to extremely low-income individuals and families who rent from local landlords
in the Tri-Cities area. Through an agreement with the Kennewick Housing Authority (KHA),
Housing Choice Voucher holders from HACPFC and KHA may search for a suitable unit in either
agency’s jurisdiction. Both the City and the HACPFC will look for opportunities to encourage the
development of affordable housing units throughout the City, including the Broadmoor
Development.
More recently, following the adoption of the 2018-2038 Comprehensive Plan (October 2020), staff
began utilizing a variety of local, regional, and state resources and guidance to identify practical
housing policy solutions. While some of these efforts were initiated prior to 2021, the alignment
of them have been emphasized over the past year. Over the past 12 months, the City of Pasco has
adopted significant zoning reforms that have eliminated restrictive zoning policies while also
increasing housing opportunities that improve mobility options.
In January 2022, the Pasco City Council completed its efforts, under Engrossed Second Substitute
House Bill 1923 (HB 1923) to increase residential building capacities. The City of Pasco was one
of 52 communities that were awarded funding from the Washington State Department Commerce
to address housing capacities. The City selected three code amendments that increased lot size
flexibility (cluster zoning/lot size averaging), allowed accessory dwelling units citywide, and re-
allowed missing middle housing on residentially zoned parcels. These changes effectively
increased the residentially zoned land that allows for attached and multi-family housing from 10
percent to 78 percent on all residential parcels. Additionally, density and flexibility incentives were
added into the code itself allowing more housing near public transit, parks, schools, hospitals, and
civic facilities.
In the fall of 2021, the City of Pasco was one of five cities selected, after a national call for
applications to participate in the Housing Solutions Lab. The Lab was hosted by the New York
University Furman Center’s Housing Solutions Lab, with support from Lincoln Institute of Land
Policy. Cities were selected that have a demonstrated interest in developing or refining a
comprehensive local housing strategy, including evidence of recent steps taken that indicate its
commitment to addressing housing challenges. Throughout the program, city staff learned and
evaluated our existing policies, and identified gaps to be addressed to help with the development
of a balanced housing policy framework. Following the completion of the Housing Solutions Lab,
City staff embarked on an effort to further housing with phased effort to update its zoning code to
increase flexibility and choices to meet demands. The updates to the zoning code will provide
practical parameters and guidance for the creation and/or redevelopment missing middle housing,
multifamily housing, and small lot residential housing.
Page 44 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
30 1 25
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
The Association of Washington Cities recognized the City of Pasco for increasing housing access
and opportunities at its 2022 annual conference with a municipal excellence award.
Local Business Community: The local business community is expected to experience positive
impacts in terms of commercial sales from new residents living and working within the Broadmoor
Development. Although there will be significant commercial development within the Broadmoor
Development, the demand for goods and services is expected to positively spill over to businesses
throughout the City. Because the land is vacant and miles away from other commercial centers
and the downtown, commercial gentrification is not expected to be an issue.
In addition to the new residents, between 280 and 1,100 on-going jobs will be introduced
depending on which Development scenario occurs. Likewise, between 1,880 and 6,600
construction jobs will be introduced based on private investment for the vertical development that
would be between $533 million to $1.8 billion based on the specific Development Program growth
scenario. These new jobs supported by significant private investment will benefit other businesses
in the City of Pasco as well as the Tri-Cities area.
Local School Districts: The Pasco School District will significantly benefit from additional
property taxes generated by new construction in the TIA from the Broadmoor Development. Their
existing property taxes are preserved under the law. School district Enrichment and Capital Levies
are excess levies, and the districts periodically ask voters to maintain existing levels of purchasing
power via voted ballots. Bond levies ask voters to approve bonds to expand or improve their
facilities. The effect of growth in the tax base coming from TIF will have two implications. First,
it increases the tax base of the district, meaning that lower overall tax rates are needed to fund a
similar level of service. Second, it increases the proportion of the tax base that is commercial which
leverages the relative voting power of residential households to support school expenditures
backed by these excess levies (voter approved or otherwise). The City also collects impact fees on
behalf of the Pasco School District to accommodate student growth associated with new
development.
Local Fire Service: State law requires a mitigation plan if the TIA will impact at least 20 percent
of the assessed value of an impacted fire district. Local fire service is provided by the City of Pasco
and therefore there is no impact to another taxing district. Additionally, the total assessed value
of the City of Pasco is $8,065,205,843 along with a Fire Department Budget of $9,270,268,
resulting in only a 0.1 percent impact on local fire service. Increased revenues from the Broadmoor
Development are expected to be sufficient, to provide at a minimum, the City’s existing levels of
services to the area.
Page 45 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
31 1
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
28
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
26
Financing Plan/Duration of TIA
The City anticipates issuing Limited Term General Obligation (LTGO no-voted debt) tax exempt
bonds to pay for the TIF infrastructure projects in the amount not to exceed $39 million. The City
anticipates issuing the debt in 2022 or early 2023 to coincide with the public infrastructure and
private development timelines.
The City plans the LTGO bonds to be structured with a 25-year amortization and a 10-year par
call. Additionally, the City is not currently expecting to capitalize interest during the first three
years of the financing when TIF revenues alone are not expected to be sufficient to cover debt
service. Instead, the City plans to pay any difference between debt service and TIF revenues from
non-TIF revenues. The City will reimburse itself for any feasibility studies, including engineering
design work to accurately project costs that occurred prior to the expected adoption of the
Ordinance designating a TIA in October 2022. The City also plans to reimburse itself for any non-
TIF revenue sources that are needed to meet the City’s debt service payments associated with the
TIF Infrastructure.
Debt Capacity
The maximum limit for LTGO non-voted debt cannot exceed 1.5 percent of the value of taxable
property within the City. Based on an assessed value of $8,065,205,983 in 2022, the City has
$23.9 million in total non-voted debt. As shown below, the City has sufficient capacity for the
issuance of the proposed $39 million LTGO bonds related to the TIF public improvements and is
expected to have approximately $58 million, or 48 percent of its debt capacity available after the
proposed issuance.
Figure 18: Debt Capacity
Source: City of Pasco, August 2022.
The estimated terms of indebtedness, including principal amount of $39 million for the TIF
infrastructure improvements, interest rate and maturity schedule are shown in Figure 19 below.
For the purposes of this analysis, it is assumed that the entire issuance will be tax exempt.
2021 Assessed Valuation for 2022 Collections 8,065,205,983
Non-Voted Debt Capacity (1.5% of AV) 120,978,090
Less: Outstanding Non-Voted Debt 23,920,000
Voted Debt Capacity -
Non-Voted Debt Capacity 97,058,090
Less: Financing Proposed 39,000,000
Projected Remaining Non-Voted Capacity $58,059,090
Projected Remaining Non-Voted Capacity % 48%
Page 46 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
32 29
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
29
Above Debt Service Schedule based on 4.5 percent interest rate
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
25
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
27
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Figure 19: Debt Service Schedule
Source: City of Pasco, August 2022
Early Outreach to Impacted Taxing Districts
While Washington State law requires formal notice to be provided to the Franklin County
Commissioners, Franklin County Treasurer, Franklin County Assessor, and impacted taxing
districts upon approval of the Tax Increment Area (TIA), the City of Pasco has engaged these
stakeholders earlier in the process. This early outreach has allowed the City to collect feedback
focused on the logistics of implementing TIF.
The taxing districts whose property tax levy would be impacted by TIF include the City of Pasco,
Franklin County, and the Port of Pasco. As approved in Washington State, TIF ensures that each
of these taxing districts will remain whole and continue to collect the same amount of tax revenue
Payment
No./year Principal Interest Principal Balance Total Payment
39,000,000
1 - 2024 875,122 1,755,000 38,124,878 2,630,122
2 - 2025 914,503 1,715,620 37,210,375 2,630,122
3 - 2026 955,655 1,674,467 36,254,720 2,630,122
4 - 2027 998,660 1,631,462 35,256,060 2,630,122
5 - 2028 1,043,599 1,586,523 34,212,461 2,630,122
6 - 2029 1,090,561 1,539,561 33,121,900 2,630,122
7 - 2030 1,139,637 1,490,485 31,982,263 2,630,122
8 - 2031 1,190,920 1,439,202 30,791,343 2,630,122
9 - 2032 1,244,512 1,385,610 29,546,831 2,630,122
10 - 2033 1,300,515 1,329,607 28,246,317 2,630,122
11 - 2034 1,359,038 1,271,084 26,887,279 2,630,122
12 - 2035 1,420,195 1,209,928 25,467,084 2,630,122
13 - 2036 1,484,103 1,146,019 23,982,981 2,630,122
14 - 2037 1,550,888 1,079,234 22,432,093 2,630,122
15 - 2038 1,620,678 1,009,444 20,811,415 2,630,122
16 - 2039 1,693,608 936,514 19,117,807 2,630,122
17 - 2040 1,769,821 860,301 17,347,986 2,630,122
18 - 2041 1,849,463 780,659 15,498,523 2,630,122
19 - 2042 1,932,689 697,434 13,565,835 2,630,122
20 - 2043 2,019,660 610,463 11,546,175 2,630,122
21 - 2044 2,110,544 519,578 9,435,631 2,630,122
22 - 2045 2,205,519 424,603 7,230,112 2,630,122
23 - 2046 2,304,767 325,355 4,925,345 2,630,122
24 - 2047 2,408,482 221,641 2,516,863 2,630,122
25 - 2048 2,516,863 113,259 (0) 2,630,122
Page 47 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
33 28
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
as though the Broadmoor development did not occur. The levy rate from each of these jurisdictions
will be applied to the increased assessed valuation within the TIA and remitted to the pay the bonds
associated with constructing the public infrastructure to support the site. Alternatively, if TIF
revenues exceed estimates then excess revenues will be distributed to these taxing districts. Other
taxing districts in the region, including Benton-Franklin County Transit and Pasco School District,
may experience indirect impacts and are being contacted as well.
The City has held initial discussions with the Franklin County Administrator, Franklin County
Treasurer and Franklin County Assessor, and the Port of Pasco Commissioners. Simultaneous to
the submittal of the project analysis, the City is meeting with each county commissioner, the Pasco
School District and Benton-Franklin Transit. Additionally, the City is participating in meetings
with the Department of Revenue to ensure that the TIA analysis provided herein utilizes
assumptions consistent with the Department’s interpretation of state law.
The City intends to provide the formal notice once the City Council approves the ordinance
establishing the TIA in October 2022.
Additional Incremental Taxes
The City’s LTGO bonds will be backed the City’s full faith and credit, meaning bond holders can
make a legal claim against the general revenue of the City if a default occurs. However, the City
can use any unrestricted revenue sources it has available to satisfy its debt obligations. Washington
state tax policy has conditions that allow governments that grow their tax bases to collect additional
revenues. This relationship creates a mutually reinforcing benefit of housing and commercial
development with additional tax revenues. New land development represents a direct financial
investment in land preparation and building structures. Those structures are then occupied by
residential neighborhoods and businesses that increase the lands' productive economic capacity.
That economic value generates taxable bases at the land, business operation, and transaction levels,
represented in land value, retail sales, business income, etc. State tax policy allows government
jurisdictions to tax these bases to fund needed public services and infrastructure.
Outside of the TIF allocations and the base value of property tax that would flow to TIF
jurisdictions, the development and occupation of buildings in the Broadmoor TIA will generate
other incremental taxes to those jurisdictions. Tax revenues can be differentiated into three
categories:
• One-time Revenues. These revenues are tied to construction. Specifically, they include
the retail sales tax on construction (materials and labor), which is taxable under
Washington state law.
• Recurring Revenues. These revenues are derived from the occupation of structures by
residents and businesses. Specific revenues include retail sales tax, and utility taxes.
• Capital Restricted Revenues. These revenues are restricted to capital and include real
estate excise taxes.
Page 48 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
34 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
29
City of Pasco
The City of Pasco is the local service provider for police, fire, public works, community
development, parks, and other local services. To support these services, the City collects a range
of general and restricted taxes, these include the following.
Sales & Use Taxes
• Local Option Sales Tax: Of the 8.7 percent sales tax currently collected in the City of
Pasco, a 1 percent “local” share of the tax accrues to the local jurisdictions. In incorporated
areas, the city receives 85 percent of the 1 percent local tax and Franklin County receives
15 percent (less administrative costs collected by the Department of Revenue). This tax is
levied on businesses in the area, and on construction activity and some transactions related
to housing and business, such as certain online purchases and the delivery of personal and
business goods.
• Criminal Justice Sales Tax: A 0.1 percent sales tax is levied by the County for criminal
justice programs. Ten percent of revenue goes directly to the County and the remaining 90
percent is distributed to the County and cities within the county on a per capita basis.
• Public Safety Sales Tax: A 0.3 percent sales tax is levied by the County for public safety
programs like expansion of county jail, construction of new police station and hiring of
new public safety officers. Sixty percent of the revenue goes directly to the County and the
remaining 40 percent is distributed to cities on a per capital basis.
Utility Taxes
The analysis uses current utility taxes rates for water, sewer, electricity, natural gas, cable, and
telephone utility purchases. These taxes are only collected by cities in Washington. The analysis
creates effective purchasing estimates of these utilities based on land use types and applies the
appropriate tax policy to estimate tax. The City of Pasco imposes utility taxes (currently 8.5
percent) on the following services but only 6 percent is allocated to the City’s General Fund
revenues:
• Cable television
• Electricity
• Garbage
• Irrigation
• Natural gas
• Sewer
• Storm drain
• Telephone
• Water
State Shared Motor Vehicle Fuel Tax & Liquor Board/Taxes
Local governments receive a gas tax distribution that is unrestricted for street purposes from the
State. The distribution is determined using a formula that is heavily weighted towards population.
ECONorthwest used a proxy of this formula to derive these revenues to the City. Cities also
receive pro rata payments from Liquor Excise Tax & Liquor Board Profits.
Page 49 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
35 1
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
30
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Real Estate Excise Tax (REET)
Real estate transactions are subject to a 0.5 percent tax on the value of the transaction. REET
revenues are placed in the capital restricted funds to finance capital projects. REET revenues are
uncertain given volatility in the real estate market. Since REET is based on the total value of real
estate transactions in a given year, the amount of REET revenues the City receives can vary
substantially from year to year based on the normal fluctuations in the real estate market. During
years when the real estate market is active, revenues are higher, and during softer real estate
markets, revenues are lower. For the purposes of this analysis, it is assumed that all new completed
projects would be sold and then 5 percent of all property value would turn over (re-sold) in any
given year.
Franklin County
Broadmoor TIF is in Franklin County. The County is also the regional service provider for a range
of human and health services, criminal justice, and other regional services. To support these
services, the County collects a range of general and restricted taxes, including the following.
Sales & Use Taxes
Local Option Sales Tax: A 0.15 percent tax rate on retail sales – full option split with the
cities in the county.
• Criminal Justice Sales Tax: A 0.1 percent tax rate on retail sales – shared with cities in the
county.
• Juvenile Corrections Facilities Sales Tax: A 0.1 percent tax rate on retail sales dedicated to
correctional facilities.
• Public Safety Sales Tax: A 0.3 percent tax rate on retail sales dedicated to public safety
uses. 40 percent of the revenues are shared with the cities on a per capita basis.
• Mental Health Sales Tax: A 0.1 percent tax rate on retail sales dedicated to mental health
expenditures.
Tax Base Productivity Assumptions
It is assumed that each housing unit will house on average 2.45 persons and that the development
will be 90 percent occupied (to account for times when homes sit vacant). Construction costs
represent the average per square foot cost for different building types based on recent construction
comparable projects (note: these costs are different from what a project is assessed at for property
tax purposes. In some cases, the investment cost may be lower than the actual construction cost).
These below costs are subject to retail sales taxes:
• Retail Warehouse: $150 per square foot
• Commercial: $250 per square foot
• Medical Office: $250 per square foot
• Multi-family Unit: $350,000 per unit
• Single Family Unit: $600,000 per unit
• Senior Housing Unit: $170,000 per unit
Page 50 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
36 31
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
Taxable retail sales are based on assumed comparable businesses:
• Retail Warehouse: $550 per square foot
• Commercial: $250.00 per square foot
• Medical Office: $25.00 per square foot
• Multi-family Unit: $2,500 per unit
• Single Family Unit: $5,000 per unit
• Senior Housing Unit: $1,000 per unit
Summary of Additional Tax Results
Based on the approximate timing of the new development of the Development Program scenarios,
the Aggressive Scenario is estimated to generate approximately $53.8 million in tax revenues for
the City and $23.8 million for the County over the same 25-year period of the TIF district. These
figures represent a 25-year cash flow (2023-2048) of tax revenues to the respective taxing
jurisdiction in 2022 dollars (e.g., all future tax revenues have been discounted at 4.5% back to
2022 values). The Moderate and Conservative are respectively less (Figure 20).
Figure 20: Summary of additional tax benefits (present value, 2022$)
Source: ECONorthwest calculations, 2022
AGGRESSIVE SCENARIO
Revenue Source City County
Sales Tax on Construction $11,230,000 $6,310,000
Ongoing Sales Tax $31,050,000 $17,440,000
Criminal Justice $360,000 $40,000
Utility Taxes $6,000,000 N/A
State Shared $200,000 N/A
REET $4,980,000 N/A
Total Incremental Revenues $53,820,000 $23,790,000
MODERATE SCENARIO
Revenue Source City County
Sales Tax on Construction $9,790,000 $5,500,000
Ongoing Sales Tax $30,660,000 $17,230,000
Criminal Justice $290,000 $30,000
Utility Taxes $5,220,000 N/A
State Shared $160,000 N/A
REET $4,150,000 N/A
Total Incremental Revenues $50,270,000 $22,760,000
CONSERVATIVE SCENARIO
Revenue Source City County
Sales Tax on Construction $5,460,000 $3,070,000
Ongoing Sales Tax $25,010,000 $14,050,000
Criminal Justice $180,000 $20,000
Utility Taxes $3,120,000 N/A
State Shared $100,000 N/A
REET $2,450,000 N/A
Total Incremental Revenues $36,320,000 $17,140,000
Page 51 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
37 30
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
32
Figure 20A summarizes these values on an annual basis for the City of Pasco to illustrate how
these revenues occur during both construction and occupancy of the building structures.
Figure 20A: Summary of Additional Tax Benefits for Moderate Scenario for City of Pasco
(Annual)
Risk Assessment and Mitigation Plan
TIF is a powerful tool available to local governments for encouraging development. Using local
property tax revenues to finance certain public improvements can encourage and generate the
desired or envisioned private development; however, using TIF has risks. The largest risks are
that: 1) the expected private development does not occur; occurs slower than expected; and/or, the
type of development and its magnitude is less than expected (including both the infrastructure that
will be funded, built, and dedicated by the private sector to the City and the envisioned vertical
development); and, 2) The cost projected for the infrastructure improvements is higher than
projected. These risks impact the expected revenues to be generated within the TIA or the costs for
the identified public infrastructure improvements. If risks are not mitigated, a local government
must then use other sources of revenue to pay for the public improvements. The City will be obligated
to pay for the TIF infrastructure even if little or no private development materializes. As stated
previously in this report, the City anticipates issuing LTGO bonds which will backed the City’s
full faith and credit, meaning bond holders can make a legal claim against the general revenue of
the City if a default occurs.
Other related risks include over-investment of infrastructure funding by TIF which can waste limited
tax dollars for other uses. Local governments can guard against and potentially avoid the over-
investing and under-investing by carefully evaluating the local market conditions and performing
the analysis associated with the But-For-Requirement identified in this report. When TIF is used
correctly, the growth and development pay for the infrastructure investments that encouraged it.
For purposes of this Project Analysis, the City has identified the Moderate Development Program
as the likely scenario that will occur. Based on the Moderate Development Program, the TIA is
projected to generate approximately $50 million (present value) in additional tax revenue over a
25-year TIF period (2023-2048). This value far exceeds the projected infrastructure cost of $39
million. The City will need to fill the financial gap (e.g., the difference between TIF allocation
revenues and debt payments) that is projected to occur in the first six years for a total gap of
$9,220,000 with other sources of revenue that are identified below. This amount can then be repaid
back from increased TIF revenues after the proposed private development stabilizes in later years
or from additional local taxes coming from the development. Notwithstanding these projections,
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Sales Taxes
Construction $0 $1,280,000 $1,300,000 $2,020,000 $1,710,000 $1,370,000 $770,000 $2,010,000 $1,110,000 $630,000 $60,000 $60,000 $60,000
On-going $0 $0 $10,000 $20,000 $1,310,000 $1,350,000 $1,390,000 $1,870,000 $2,460,000 $2,520,000 $2,800,000 $2,850,000 $2,900,000
Criminal Justice $0 $0 $0 $10,000 $10,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $30,000
Utility Taxes $0 $0 $40,000 $80,000 $140,000 $190,000 $230,000 $260,000 $310,000 $350,000 $370,000 $370,000 $380,000
State-shared $0 $0 $0 $0 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
REET $0 $0 $40,000 $80,000 $140,000 $190,000 $230,000 $260,000 $310,000 $350,000 $370,000 $370,000 $380,000
Total $0 $1,280,000 $1,390,000 $2,200,000 $3,310,000 $3,130,000 $2,650,000 $4,420,000 $4,220,000 $3,880,000 $3,630,000 $3,700,000 $3,770,000
2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Sales Taxes
Construction $60,000 $70,000 $70,000 $70,000 $0 $0 $0 $0 $0 $0 $0 $0 $0
On-going $2,960,000 $3,010,000 $3,070,000 $3,130,000 $3,190,000 $3,240,000 $3,300,000 $3,370,000 $3,430,000 $3,490,000 $3,560,000 $3,620,000 $3,690,000
Criminal Justice $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Utility Taxes $390,000 $400,000 $410,000 $410,000 $420,000 $430,000 $430,000 $440,000 $450,000 $450,000 $460,000 $470,000 $470,000
State-shared $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
REET $390,000 $400,000 $410,000 $410,000 $420,000 $430,000 $430,000 $440,000 $450,000 $450,000 $460,000 $470,000 $470,000
Total $3,840,000 $3,910,000 $3,990,000 $4,060,000 $4,070,000 $4,140,000 $4,220,000 $4,290,000 $4,370,000 $4,440,000 $4,520,000 $4,600,000 $4,680,000
Page 52 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
38 1 33
29
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
the City has prepared a mitigation plan to respond to: 1) less development occurring than projected
as programmed in the Conservative Development scenario; and 2) further safeguard against
economic or development issues outside of the City’s control, if only two commercial lots were
developed.
The following mitigation plan has been created to respond to various development and financial
risks related to the Broadmoor Development:
Development Mitigation
Development Program Sensitivity Analysis: Three different private development program
scenarios (Aggressive, Moderate, and Conservative) have been developed and evaluated to
identify potential TIF revenues and sufficient mitigation measures should development not occur
(worst case) or occur at a different speed and magnitude.
Infrastructure Agreement: The City of Pasco has executed a Letter of Understanding (LOU) with
the owner of the Broadmoor Development regarding the infrastructure investments that each party
will make to incentivize and encourage private development. City management will bring forward
an agreement between the City and the owner of the Broadmoor Development that further
memorializes the infrastructure improvements and expected development timing. This agreement
will provide for an additional safeguard that private development is anticipated to occur based on
the conservative development program being relied upon by the City.
Additional Infrastructure Assurances: Several factors provide assurances that private development
will fund and construct the infrastructure proposed outside of the public improvements funded by
TIF:
• The land to be sold by Broadmoor Properties, LLC has a projected value over $155 million,
providing sufficient resources to support the remaining infrastructure costs. Land value is
expected to rise once the TIA is adopted by the Pasco City Council and development
initiates.
• The projected construction cost for the proposed vertical development is between
approximately $650 million (Conservative) to $1.3 billion (Aggressive). This level of
investment is orders of magnitude larger than the contemplated TIF infrastructure of $39
million.
• Residential development typically has a greater ability to support infrastructure expenses
based on sales and rents versus commercial and mixed-use properties.
• Broadmoor Properties, LLC real estate brokers believe the Pasco market is underserved
with upscale mixed-use luxury apartments and further believe rents will rise sufficiently to
support construction cost in the near future. This property in particular is unique to the
region in that it is elevated and within close proximity to the Columbia River and city views
to the south and west. From a view perspective, these units will be among the most
desirable in the region.
• We have conservatively estimated the number of units as part of each development scenario
with a high of 45 units per acre to a low or 28 units per acre. In comparison, you would
likely see 80 to 120 units per acre with a 5-story wood construction on top of a concrete
podium with parking plus other amenities. This conservative density estimate allows for
surface parking if rents are insufficient to support the envision 5 over 1 or 5 over 2 mixed-
use podium development.
Page 53 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
39
28
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
34
• To further mitigate the City’s exposure related to the timing and scope of private
development and the projected TIA property tax revenues, the City will schedule the timing
of any bond debt issuance to coincide with certain development milestones (e.g., property
closings, entitlements obtained, etc.) that near term developments will move forward
providing for greater development certainty and additional tax revenue beyond property
taxes to help pay for any debt service.
Financial Mitigation
The following mitigation plan is proposed to provide multiple levels of financial protection to fill
any financial gaps that occur in the early years of the TIA until private development and TIF
revenues stabilize or should the expected private development occur slower than planned.
Level 1:
Moderate Development Scenario: Based on the Moderate Development Program, it is projected
the City will receive a present value of $50 million in incremental tax revenues generated by the
proposed development. A portion of these incremental taxes can be used to support any
infrastructure debt service gap in TIF revenues. In a Moderate scenario, TIF allocation revenues
would not cover debt service payments (presented as equal payments) over the course of the bond
and additional incremental revenues would be needed to service the debt. This comparison is
shown in the figure below.
The additional taxes would cover 3 of the 5 years where deficits might be expected. In such a case,
the two deficit years would need temporary cash flow coverage from other funds (e.g., reserves as
described below) until either incremental taxes or TIF revenue allocations could be used to repay
them. The total value of these shortfalls is $2,210,000 (note: only values up to 2035 are shown
since no shortfalls are expected afterward).
Figure 21: Comparison of Debt Payment Surplus/Deficits and Other Additional Taxes
Source: ECONorthwest Calculations, 2022
Level 2:
Conservative Development. Based on the Conservative Development Program, (no development
after 2030), it is projected the City will receive a present value of $36 million in incremental tax
revenues generated by the proposed development. A portion of these incremental taxes can be used
to support any infrastructure debt service gap in TIF revenues. In a Conservative scenario, TIF
allocation revenues would not cover even debt service payments over the course of the bond and
additional incremental revenues would be needed to service the debt. This comparison is shown in
the figure below.
The additional taxes would cover 18 of the 20 years where deficits might be expected. In such a
case, the two deficit years would need temporary cash flow coverage from other funds (e.g.,
reserves as described below) until either incremental taxes or TIF revenue allocations could be
used to repay them. The total value of these shortfalls is $2,750,000.
TIF Allocation Revenues
Assessment Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Surpus/Deficit $0 ($2,630,000)($2,250,000)($1,870,000)($1,260,000)($750,000)($330,000)($130,000)$400,000 $720,000 $910,000 $960,000 $1,020,000
Additional Tax Revenues $0 $1,280,000 $1,390,000 $2,200,000 $3,310,000 $3,130,000 $2,650,000 $4,420,000 $4,220,000 $3,880,000 $3,630,000 $3,700,000 $3,770,000
Gap $0 ($1,350,000)($860,000)$330,000 $2,050,000 $2,380,000 $2,320,000 $4,290,000 $4,620,000 $4,600,000 $4,540,000 $4,660,000 $4,790,000
Page 54 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
40 32
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
32
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
35
Figure 22: Comparison of Debt Payment Surplus/Deficits and Other Additional Taxes
Source: ECONorthwest Calculations, 2022
Level 3:
Limited Taxes on Commercial. If only two of the commercial developments that are expected to
occur first within each development program, the City will receive sales and utility taxes from
these projects which can be used to off-set any infrastructure debt service gap of local property tax
revenues from the TIA. On a present value basis, these revenues amount to $26 million over the
TIF time frame.
The additional taxes would cover 4 of the 25 years where deficits might be expected. The total
value of these shortfalls is $10,480,000. In such a case, the remaining 21 years would need
temporary cash flow coverage from other funds (e.g., reserves as described below). Future year
excess additional taxes or TIF revenue allocations would not be available to repay these cash flow
shortfalls given the extent and timing of the deficits.
Figure 23: Comparison of Debt Payment Surplus/Deficits and Other Additional Taxes
Source: ECONorthwest Calculations, 2022
Level 4:
Reserves. The City has approximately $49,000,000 in reserves that are not allocated to any
specific operating or capital expense that can be used for payment of debt service for its
infrastructure obligations for the Broadmoor Development if property tax revenue from the TIA is
insufficient. The City’s policy is to maintain 60 days of average operating expenditures within its
General Fund. The City’s current reserve balance is approximately $36,500,000 above this policy
threshold allowing for funds to be used if property tax revenues from the TIA are insufficient with
minimal reserve policy impact to the City’s other funds and operations.
The revenue sources in Level 4 exceed the projected cost of the TIF infrastructure. The City’s
reserves are the last line of defense against lower TIF revenues than projected.
Additional Mitigation Measures
Debt Issuance Timing. The City will reduce its financial exposure related to the timing and scope
of private development by strategically timing the issuance of LTGO bond debt to coincide with
certain development milestones (e.g., property closings, entitlements obtained, etc.) that near term
TIF Allocation Revenues
Assessment Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Surpus/Deficit $0 ($2,630,000)($2,360,000)($1,990,000)($1,660,000)($1,270,000)($830,000)($760,000)($680,000)($660,000)($640,000)($620,000)($600,000)
Additional Tax Revenues $0 $910,000 $1,330,000 $2,570,000 $3,090,000 $3,600,000 $2,400,000 $2,460,000 $2,330,000 $2,370,000 $2,410,000 $2,450,000 $2,500,000
Gap $0 ($1,720,000)($1,030,000)$580,000 $1,430,000 $2,330,000 $1,570,000 $1,700,000 $1,650,000 $1,710,000 $1,770,000 $1,830,000 $1,900,000
TIF Allocation Revenues
Assessment Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Surpus/Deficit ($580,000)($560,000)($540,000)($520,000)($500,000)($470,000)($450,000)($430,000)($410,000)($390,000)($360,000)($340,000)($320,000)
Additional Tax Revenues $2,540,000 $2,590,000 $2,630,000 $2,680,000 $2,730,000 $2,780,000 $2,830,000 $2,880,000 $2,930,000 $2,980,000 $3,030,000 $3,090,000 $3,140,000
Gap $1,960,000 $2,030,000 $2,090,000 $2,160,000 $2,230,000 $2,310,000 $2,380,000 $2,450,000 $2,520,000 $2,590,000 $2,670,000 $2,750,000 $2,820,000
TIF Allocation Revenues
Assessment Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Surpus/Deficit $0 ($2,630,000)($2,630,000)($2,530,000)($2,490,000)($2,440,000)($2,440,000)($2,430,000)($2,430,000)($2,430,000)($2,430,000)($2,430,000)($2,420,000)
Additional Tax Revenues $0 $0 $340,000 $1,490,000 $1,750,000 $1,790,000 $1,820,000 $1,860,000 $1,890,000 $1,930,000 $1,960,000 $2,000,000 $2,030,000
Gap $0 ($2,630,000)($2,290,000)($1,040,000)($740,000)($650,000)($620,000)($570,000)($540,000)($500,000)($470,000)($430,000)($390,000)
TIF Allocation Revenues
Assessment Year 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048
Surpus/Deficit ($2,420,000)($2,420,000)($2,420,000)($2,420,000)($2,410,000)($2,410,000)($2,410,000)($2,410,000)($2,410,000)($2,400,000)($2,400,000)($2,400,000)($2,400,000)
Additional Tax Revenues $2,070,000 $2,110,000 $2,150,000 $2,190,000 $2,230,000 $2,270,000 $2,310,000 $2,350,000 $2,400,000 $2,440,000 $2,490,000 $2,530,000 $2,580,000
Gap ($350,000)($310,000)($270,000)($230,000)($180,000)($140,000)($100,000)($60,000)($10,000)$40,000 $90,000 $130,000 $180,000
Page 55 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
41 1 City of Pasco | Broadmoor Development TIF Project Analysis June 2022
City of Pasco | Broadmoor Development TIF Project Analysis July 2022
36
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
developments will move forward (if infrastructure improvements are made by the City) providing
for greater development and TIA revenue certainty.
Public Infrastructure Cost Containment. Municipal agencies have vast experience with building
horizontal infrastructure (streets, water, sewer, etc.). The City of Pasco is no exception and takes
pride in its ability to provide conservative construction estimates, create clear construction bid
documents, and effectively manage the construction delivery process. The cost estimates for the
TIF public infrastructure improvements are currently based on 30 percent design levels and include
a 30 percent contingency at this time to buffer any volatility in the construction industry.
Construction costs will be further refined with either the 60 percent or 90 percent design level in
the coming months. The City plans to support the design costs for all of the identified TIF
infrastructure projects (with repayment from future TIF funds) up to receiving public bids and
contract(s) awarded prior to the issuance of debt providing for additional certainty of costs.
There are other risks that a municipal government faces regularly such as: construction delays
which increase costs for public infrastructure improvements; economic slowdown or recession;
higher borrowing costs; and lower levy rates within the TIA than anticipated. The City of Pasco
has been successful in addressing these secondary type risks by using conservative estimates and
adherence to prudent fiscal and construction management policies. The City will continue these
same practices as it implements the proposed TIA and the associated infrastructure improvements.
Pasco TIF Team
City of Pasco
• Dave Zabell, City Manager
• Adam Lincoln, Deputy City Manager
• Darcy Buckley, Finance Director
• Rick White, Community & Economic Services Director
• Steve Worley, Public Works Director
• Dan Ford, City Engineer
• Mike Gonzalez, Economic Development Manager
Tax Increment Financing Consultants
• Bob Stowe, Stowe Development & Strategies (TIF Project Manager)
• Morgan Shook, ECONorthwest
• Briahna Murray, Gordon Thomas Honeywell Governmental Affairs
Legal & Financial Advisors
• Eric Ferguson, City Attorney
• William Tonkin & Lee Marchisio, Foster Garvey P.C., Bond Counsel
• Dave Trageser, DA Davidson, Bond Underwriter
• Scott Bauer, Northwest Municipal Advisors, Financial Advisors
Page 56 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
42
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
37
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
37
Future TIF Actions
There are a number of actions that will occur before the Pasco City Council formally considers the
formation of a TIA for the Broadmoor Development Project. First, is to receive and review
feedback offered by the Office of the State Treasurer related to this Project Analysis. Second,
based on any feedback, the TIF team will evaluate and make appropriate adjustments to its
proposed TIF program. Third, it will conduct two separate public briefings on the proposed TIA
for the Broadmoor Development Project and provide formal notice in the local newspaper. The
City will continue to engage its local partners including Franklin County and the Port of Pasco, as
discussions continue. There are also a number of planning, engineering, finance, and legal
activities that will occur to advance the proposed public infrastructure and private development
for the Broadmoor Development. Below is an expected schedule for the future TIF actions.
Page 57 of 229
43
Timeline
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
38
Source: Stowe Development & Strategies, 2022
Figure 24: Timeline Page 58 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
44 1
City of Pasco | Broadmoor Development TIF Project Analysis August 2022
39
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
Findings |Bottom Line
The envisioned Broadmoor Development would not be viable without the City’s intervention to
provide the identified infrastructure via the establishment of a TIA. This city has demonstrated an
extremely strong nexus between the proposed development and the proposed infrastructure. The
City is conservatively estimating the potential revenues that will be generated by the formation of
a TIA and has sufficient resources to pay for infrastructure debt service should the expected TIA
revenues not materialize.
There are no negative impacts to affordable housing, the local business community, the local
school districts, or to local fire districts. The Broadmoor Development will provide for significant
jobs and investment into the local and regional economy. Each taxing district will benefit from
increased taxes generated by the development, even with the financial support provided by
property taxes within the TIA due to the scope and magnitude of the expected development.
Based on all of the above findings and information contained in this Project Analysis, the
Broadmoor Development and its proposed TIA meets both the spirit and the letter of Washington’s
State’s new law. Furthermore, there is no better project to demonstrate the power and
appropriateness of TIF than Pasco’s Broadmoor Development.
Page 59 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
45
Appendices Appendices
• Office of State Treasurer May 31, 2022 Memo
• TIF Infrastructure Improvements
• State Audit Report Summary
o 2016 - https://egov-pasco.com/weblink/DocView.aspx?id=769076&dbid=0
o 2017 - https://egov-pasco.com/weblink/DocView.aspx?id=792162&dbid=0
o 2018 - https://egov-pasco.com/weblink/DocView.aspx?id=855058&dbid=0
o 2019 - https://egov-pasco.com/weblink/DocView.aspx?id=948969&dbid=0
o 2020 - https://egov-pasco.com/weblink/DocView.aspx?id=954279&dbid=0
• Pasco City Council Resolution Declaring its intent to form a
Tax Increment Area in the Broadmoor Area
• Consultant Team Bio’s
Page 60 of 229
Office of State Treasurer Letter
Page 61 of 229
Legislative Building, P.O. Box 40200 Olympia, Washington 98504 -0200
(360) 902-9000 • TTY USERS: CALL 711 • FAX (360) 902-9037
www.tre.wa.gov
Office of the Treasurer
State of Washington
Mike Pellicciotti
TO: City of Pasco
FROM: Jason Richter, Deputy State Treasurer
DATE: May 31, 2022
RE: Information Needed for OST Review of TIF Project Analysis
RCW 39.114.020 requires a Project Analysis to be submitted to the Office of the State Treasurer (OST)
for review and comment. To assist OST in performing its review), we ask the Issuing Jurisdiction to
ensure that the materials listed below are included in their Project Analysis:
1. Name and contact information for members of the financing team;
2. Comprehensive description of the Tax Increment Area, including land ownership and leasing or
sale arrangements;
3. A description of the Project being undertaken, in connection with the Tax Increment Area.
4. Proposed budget for the Project, including the available funding sources, expected costs, and
plan of finance;
5. An estimated timeline for the Project;
6. Detailed assessed value growth and tax increment revenue projections that have been prepared
in connection with the Project, including a description of the assumptions used and the source
of the projections;
7. Description of Tax Increment Area taxpayer base, and, if possible, a breakdown by property /
industry type;
8. Description of the expected bond structure;
9. Description of the specific revenue pledge and revenues that will support the debt to be issued;
10. Calculations showing the Issuer’s projected debt service coverage, based on current and
expected pledged revenues;
11. Calculations demonstrating compliance with the Issuer debt limitations;
12. Five years of the most recent historical and one year of projected financial statements for the
Issuer, identifying the specific revenues that will be pledged towards supporting debt service
payments;
13. Description of potential project risk factors.
OST requests Issuing Jurisdictions provide final or near-final draft Project Analysis. Please note that
substantial revisions to the Project Analysis may result in delays and necessary extensions to OST’s
Page 62 of 229
Legislative Building, P.O. Box 40200 Olympia, Washington 98504 -0200
(360) 902-9000 • TTY USERS: CALL 711 • FAX (360) 902-9037
www.tre.wa.gov
review. Providing all of these requested items will help OST perform its review as quickly as possible. If
you have any questions, please do not hesitate to contact us.
Page 63 of 229
TIF Infrastructure Improvements
Page 64 of 229
LOT 4
LOT 1
LOT 2
LOT 3
LOT 5
LOT 6
LOT 11
LOT 12
LOT 13
LOT 14
LOT 15
LOT 18
LOT 7
(MIXED USE - RETAIL/RESIDENTIAL)
(MIXED USE - RETAIL/RESIDENTIAL)
(HIGH DENSITY RESIDENTIAL)
(RESIDENTIAL)
(COMMERCIAL)
(COMMERCIAL)
(COMMERCIAL)
(COMMERCIAL)
(COMMERCIAL)
(COMMERCIAL)
(MIXED USE - RETAIL/RESIDENTIAL)
(HIGH DENSITY RESIDENTIAL)
ROAD 108 ROAD 108
BURNS ROADLOT 8(RESIDENTIAL)
LOT 9(HIGH DENSITY RESIDENTIAL)
LOT 10
(COMMERCIAL)
DENT ROAD
HARRIS ROADI-
8
2
(COMMERCIAL)
ROAD 103
(FUTURE REDEVELOPMENT AREA)SANDIFUR PKWYROAD 103
ROAD 105 ROAD 105
BUCKINGHAM DRBROADMOOR BLVD
BEDFORD STLOT 19
(MIXED USED -
RETAIL/RESIDENTIAL)
PROPOSED CURB LINE
ROW PER PLAT
EXTG. RIGHT OF WAY
PROPOSED STRIPING
5 LANE SECTION
5 LANE SECTION
7 LANE SECTION
7 LANE SECTION
CITY SIGNAL
INTERSECTION CLOSED
3 LANE SECTION
CORE
ROAD
SECTION
CORE
ROAD
SECTION
CORE ROAD
SECTION EDGE OF
PAVEMENT
INTERSECTION CLOSED
DEDICATED RIGHT TURNBROADMOOR PROPERTIES
FINANCED SIGNAL
BROADMOOR PROPERTIES
FINANCED SIGNAL
DEDICATED RIGHT TURNDUAL RIGHT TURN 6 LANE SECTION
CORE
ROUNDABOUTFUTURE REALIGNMENT
HARRIS
REALIGN HARRIS
ROAD 108
INTERCHANGE IMPROVEMENTS
(TIF PROJECT)
IMPROVEMENTS EXTEND
TO 100' PAST BEDFORD ST.
EXISTING
ROAD TO BE
VACATED
CORE
ROAD
SECTION
POSSIBLE FUTURE
ROAD 105 EXTENSION
POSSIBLE FUTURE
ROAD 103 EXTENSION
SEWER ONLY
Scale 1" =
0 300 600
300'
150
BROADMOOR - IMPROVEMENTS
NEW SIGNAL
EXISTING SIGNAL
TIF PROJECTS (CITY)
1ST PHASE OF BROADMOOR
PROPERTIES PROJECT
REMAINING BROADMOOR
PROPERTIES/DEVELOPER PROJECTS
NOTES:
1.FULL BUILD ROADS TO INCLUDE STREET WATER, SEWER, STORM,
CURB, GUTTER, SIDEWALK, LANDSCAPING, LIGHTING AND REQUIRED
SIDEWALK FURNITURE.
2.CORE ROADS TO ONLY INCLUDE STREET WATER AND SEWER.
BROADMOOR PROPERTIES/DEVELOPER TO BE RESPONSIBLE FOR
STORM.
CITY TIF PROJECTS
BROADMOOR PROPERTIES/DEVELOPER
29.3 ACRES
33.9 ACRES
DEDICATED RIGHT-OF-WAY TABLEPage 65 of 229
State Audit Reports
Page 66 of 229
2017 2018 2019 2020 2021 2022 - Budgeted
OFFICE OF THE TREASURER REPORT* Total Total Total Total Total Total
Beginning Cash Available for Debt Service
22,484,159
22,586,901
26,838,971
54,039,616
52,289,555
57,645,923
Operating Revenue Available for Debt Service
Operating Revenue
49,705,779
53,049,409
60,596,166
62,236,539
73,795,716
82,493,491
Operating Expenditures 46,216,719 47,712,016 48,680,035 50,994,626 56,654,356 71,289,394
Operating Income (Loss) 3,489,060 5,337,393 11,916,131 11,241,913 17,141,360 11,204,097
Total Revenue Available for Debt Service 25,973,219 27,924,294 38,755,102 65,281,529 69,430,915 68,850,020
Debt Service (General Obligation)
GO Debt Obligation
1,183,106
1,167,300
1,298,413
2,377,995
1,893,922
3,780,250
TIF GO Debt Obligation - - -
Total Debt Service 1,183,106 1,167,300 1,298,413 2,377,995 1,893,922 3,780,250
Other Inflows (Outflows) (3,386,318) (1,067,056) 15,023,991 (13,104,639) (11,784,992) (23,121,950)
Ending Cash Available for Debt Service
22,586,901
26,857,238
53,779,093
52,176,890
57,645,923
45,728,070
Footnotes:
Report includes financial information for City's General Fund, Economic Development Fund, and Capital Improvement Fund (Real Estate Excise Taxes).
General Fund includes minimal level of grant revenues that are offset by corresponding expenses in the same year.
Cash balances presented do not include proceeds from previously issued bonds. Page 67 of 229
Pasco City Council TIF Resolution
Page 68 of 229
RESOLUTION NO. 4179
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
DECLARING ITS INTENT TO FORM A TAX INCREMENT AREA IN THE
BROADMOOR AREA
WHEREAS, for many years the City has been studying, evaluating, designing and
completing key infrastructure improvements to enable a mixed use development within the
Broadmoor area; and
WHEREAS, Broadmoor Properties, LLC owns over 400 acres of property that is being
planned for mixed use development and is in need of substantial infrastructure improvements to
support the desired development; and
WHEREAS, the Broadmoor area has the opportunity, if built, to serve as a significant
economic engine for the Pasco community providing for increased tax revenues to support City
services and providing significant employment opportunities for the residents of the City; and
WHEREAS,the Washington State Legislature,during its 2021 legislative session,enacted
Engrossed Substitute House Bill 1189 as Chapter 207, Laws of 2021, titled "AN ACT Relating to
tax increment financing" and codified as RCW 39.114, which authorizes local governments,
including cities, to carry out tax increment financing of public improvements needed to support
vital private economic development projects; and
WHEREAS, Tax Increment Financing (TIF) is a program that allocates revenues
generated from the increased assessed valuation of properties improved by the development that
are within a designated tax increment area (TIA) to pay for public improvements that are needed
to support the private development; and
WHEREAS, City management has identified the key preliminary TIF infrastructure
improvements in Exhibit A (shown as City TIF Projects) that have been identified at this time as
outside of a developer's ability to fund and achieve the desired development based on market
conditions necessary to accommodate commercial and mixed-use tenants; and
WHEREAS, the key preliminary TIF Projects have been estimated to cost approximately
24 million to $30 million to construct; and
WHEREAS, Broadmoor Properties, LLC will be dedicating approximately 24.3 acres of
land for the identified TIF Projects resulting in an average value range between $5,292,540 to
10,585,080 in project benefit; and
WHEREAS, City management and Broadmoor Properties, LLC have developed and
agreed upon the infrastructure responsibilities as shown in Exhibit A for each party necessary to
achieve the desired development; and
Resolution—Tax Increment Area- 1
Page 69 of 229
WHEREAS, City management anticipates bringing forward for Council consideration an
agreement between the City and Broadmoor Properties, LLC that memorializes the infrastructure
improvement responsibilities provided in Exhibit A; and
WHEREAS,the TIF law requires the City to prepare a Project Analysis when considering
forming a TIA which includes the following key items:
Boundaries and duration of the increment area.
A description of the expected private development within the increment area,
including a comparison of scenarios with and without proposed public
improvements (AKA the `But for" analysis — the development would not occur
but for"the public improvements).
A description of the public improvements,estimated public improvement costs, and
the estimated amount of bonds or other obligations expected to be issued.
Assessed value of real property within the increment area and an estimate of the
increment value and tax allocation revenues expected.
Estimate of the job creation reasonably expected to result from the public
improvements and the private development.
An assessment of any impacts and necessary mitigation to address impacts on the
following:
Affordable and low-income housing
Local business community
Local school districts
Local fire service; and
WHEREAS,the Project Analysis is expected to be completed by the end of May 2022 and
then submitted to the State Treasurer as required by TIF law, allowing the Treasurer 90 days to
review the analysis; and
WHEREAS, the City will conduct public briefings on the proposed TIA to inform the
community and other public agencies about the anticipated benefits and impacts associated with
the development; and
WHEREAS, the City Council will consider adoption of an Ordinance in September 2022
creating a TIA following any comments by the State Treasurer and testimony resulting from the
public briefings; and
WHEREAS,the City has created several preliminary development scenarios based on the
type and timing of development that may occur within the proposed Broadmoor TIA in which even
the most modest development scenario and timing would generate revenues (Exhibit B) sufficient
to support the necessary infrastructure improvements needed to support the private development;
and
WHEREAS, the City anticipates issuing LTGO (no-voted) tax exempt bonds to pay for
the identified infrastructure projects based on the additional TIA revenues from the Broadmoor
development; and
Resolution—Tax Increment Area-2
Page 70 of 229
WHEREAS, LTGO bonds pledge the City's tax revenues as a guarantee to receive the
best possible tax-exempt terms, and the City can pay debt service associated with these bonds with
any non-restricted tax revenue such as sales tax; and
WHEREAS, to mitigate the City's exposure related to the timing and scope of private
development and the projected TIA property tax revenues,the City will schedule the timing of any
bond debt issuance to coincide with certain development milestones (e.g., property closings,
entitlements obtained, etc.) that near term developments will move forward (if infrastructure
improvements are made by the City) providing for greater development certainty and additional
tax revenue beyond property taxes to help pay for any debt service; and
WHEREAS, as part of the above-mentioned Project Analysis, the City will refine the
projected TIA revenues,conduct a"but-for"analysis,coordinate with the other taxing entities,and
complete other items required by law.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
That the City Council directs the City Manager to develop a TIF program for the
Broadmoor area and prepare an Ordinance for Council's consideration to form a TIA in accordance
with state law.
Be It Further Resolved that the City Council supports the preliminary infrastructure
projects that are identified as described in Exhibit A and recognizes that such projects may be
refined as part of the City's TIF Analysis.
PASSED by the City Council of the City of Pasco, Washington, the 2nd day of May, 2022.
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM
J
r x9
e ra Barnham, CMC F g n La C
City Clerk City Attorney
Resolution—Tax Increment Area- 3
Page 71 of 229
Broadmoor Area Tax Increment Financing (TIF) Projects
Corridors
1. Sandifur Parkway—Bedford Street to Road 108
This work will consist of:
Road widening of the existing road from Bedford Street to Broadmoor Blvd.
Full road construction, including but not limited to, as much as 7-lanes of roadway and frontage
improvements on the north including curb/gutter, stormwater, sidewalk, street lighting and
landscaping and Curb/gutter and stormwater on the south side from Broadmoor Blvd. to Road
103.
Construction of a core road, including but not limited to, as much as 3-lanes of asphalt road
surface (toe-to-toe of curb)from Road 103 to Road 108.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this corridor from Broadmoor to Road 108.
2. Broadmoor Boulevard—Interstate 182 to Burns Road
This work will consist of:
Road widening of the existing road, west side only, including the addition of as much as 7-lanes
of asphalt roadway, curb/gutter, stormwater, muti-use pathway, and the relocation of existing
streetlights from interstate 182 to Sandifur Parkway.
Road widening of the existing road, west side only, including the addition of as much as 7-lanes
of asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and
landscaping from Sandifur Parkway to Buckingham Road.
Road widening of the existing road, west side only, including the addition of as much as 5-lanes
of asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and
landscaping from Buckingham Road to Burns Road.
Utility adjustments of the existing utilities will be included in this corridor from Interstate 182 to
Burns Road.
3. Road 108—Harris Road to Sandifur Parkway
This work will consist of:
Construction of a core road, including but not limited to, as much as 3-lanes of asphalt road
surface (toe-to-toe of curb)from Harris Road to Sandifur Parkway.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this corridor from Harris Road to Sandifur Parkway.
Interstate Associated Improvements
4. Interchange Improvements- Interstate 182 @ Road 100
This work will consist of:
Improvements to the existing interchange including construction of an eastbound off-ramp and
intersection along with restriping.
A second phase shall include bike/ped facilities connecting north to south.
Intersections
5. Burns Road/ Broadmoar Boulevard
This work will consist of:
Full improvements to the existing intersection including signalization, widening, curb/gutter,
sidewalk with ADA ramps, street lighting, striping, and landscaping.
Page 72 of 229
Utility extension and/or adjustments of the existing utilities will be included within this
intersection.
This intersection will have participation in cost from other developers through a separate
participation technical memorandum, prepared by the City's consultant.
6. Buckingham Drive/Broadmoor Baulevard
This work will consist of:
Full improvements to the existing intersection including signalization,widening on the west
side, curb/gutter, stormwater, sidewalk with ADA ramps, street lighting, striping, and
landscaping.
Utility extension and/or adjustments of the existing utilities will be included within this
intersection.
The signalization will be provided by Broadmoor Properties, LLC.
7. Sandifur Parkway/ Broadmoor Boulevard
This work will consist of:
Full improvements to the existing intersection including signalization, widening, curb/gutter,
sidewalk with ADA ramps, street lighting, striping, and landscaping.
Utility extension and/or adjustments of the existing utilities will be included within this
intersection.
8. Sandifur Parkway/Road 108
This work will consist of:
Construction of a "core" roundabout that includes all the asphalt necessary to extend 2' past
the proposed final toe- of-curb/gutter.This effort will also include temporary gravel shoulder
drainage swale as well as striping and lighting as well as the full construction of a center truck
apron and landscaped feature and entry delineators including curb/gutter and internal
surfacing as determined.
Frontage improvements including curb/gutter, sidewalk, stormwater, and landscaping will be
completed by the parcel owner at the time of development.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this intersection.
9. Sandifur Parkway/ Road 103
This work will consist of:
Construction of a full intersection including signalization,widening, curb/gutter, stormwater,
sidewalk with ADA ramps, street lighting, striping, and landscaping.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this intersection.
The signalization will be provided by Broadmoor Properties, LLC.
10. Road 108/Road 103
This work will consist of:
Construction of a core intersection, including but not limited to, as much as 3-lanes of asphalt
road surface (toe-to-toe of curb).
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this intersection.
Stop control determined at time of design.
Page 73 of 229
Consultant Team Bio’s
Page 74 of 229
Bob Stowe - Principal
Bob Stowe is the principal and founder of Stowe Development & Strategies —
a company he formed in 2016 to help public sector clients succeed with their
economic and community development interests. With 34 years of experience
in progressive community transformations, Bob is one of the Northwest’s
most innovative and entrepreneurial real estate and community developers.
He uses sound long- range fiscal planning skills and has achieved enviable
results in leading redevelopment efforts from the dream stage to construction.
This is true for projects large and small, straightforward and complex.
Bob’s understanding and experience with tax increment financing, master plan development, transit
oriented development, placemaking, negotiation of purchase and sale agreements, development
agreements, public benefit agreements, and his ability to create public private partnerships make him an
ideal public sector development partner.
Bob has been responsible for leading, managing, coordinating, and implementing a wide variety of complex
and multi-faceted projects including, downtown revitalization plans, civic center plans and development,
master plans, public-private partnerships, and transit-oriented developments to name a few.
Bob was the City Manager for the City of Bothell, Washington from 2005 to 2016 where he was the architect
and leader of Washington’s largest and most successful publicly-led downtown revitalization. Under Bob’s
leadership, this project utilized a Local Infrastructure Financing Tool award (AKA TIF light) as part of the
funding package that stimulated private investment of over $300 million; a very big step in achieving the
City’s 25-year goal of $650 million. The fact that nearly half that goal was reached in just a few years, during
the Great Recession, and with leverage from public/private collaboration, made it all the more remarkable.
Bob guided the development of approximately $150 million in public sector improvements (relocation of
a state highway, creation of new streets, storm water system, parks, environmental clean-up, etc.)
identified as necessary to achieve the revitalization vision. The massive public development plan and
schedule also needed to align with private sector purchase of surplus land from the City, environmental
remediation, public streets to be developed by the private sector, and on-site mixed-use development.
Precise scheduling, communication and the ability to respond to changing conditions were skills that Bob
successfully delivered on this project.
Before arriving in Bothell, Bob was the City Manager for the City of Mill Creek for nine years and helped
lead development of the award-winning Mill Creek Town Center in the early 2000s. His first downtown
transformation project began with the revitalization of Downtown Dayton, Washington in the late 1980s.
The hallmark of Bob’s effort is his commitment to create well designed and environmentally sustainable
places where people want to live, work, and come together to celebrate. Bob has tackled the most difficult
and complex projects, achieving the redevelopment and economic dreams of several communities with his
failure is not an option approach.
EDUCATION
• MBA, Albers School of Business & Economics, Seattle University (with honors).
• BA, Urban and Regional Planning, Eastern Washington University.
Page 75 of 229
Morgan Shook - Director/Partner
Morgan Shook is a Senior Policy and Economic Analyst working in
real estate, land use, and transportation economics, and finance. He
has deep expertise in economic, market and financial analytics that
he brought to bear in business, enterprise, and policy settings.
Morgan has worked for a range of government, business, and non-
profit clients to advance their missions that in diverse set areas
and topics.
Morgan has worked on every form of tax increment financing in Washington including
Community Revitalization Financing, Local Infrastructure Financing Tool, Local
Revitalization Financing LRF, Landscape Conservation and Local Infrastructure Program, as
well as the recently passed Tax Increment Financing bill in the 2021 legislative session.
Before joining ECONorthwest, Morgan worked in biotechnology development at the Institute
for Systems Biology, and health disparities research at the University of Chicago. Morgan
recently served on the Seattle Planning Commission.
EDUCATION
• M.U.R.P., Portland State University
• B.S. Molecular Biology, University of Puget Sound
• Certificate in Commercial Real Estate Development, University of Washington
Extension
Areas of Expertise
• Economic Development
• Affordable Housing
• Land Use Planning
• Market & Feasibility Analysis
• Infrastructure & Finance Funding
• Transit-Oriented Development
Page 76 of 229
Briahna Murray – Vice President
Briahna Murray has lobbied the Washington State Legislature on
behalf of public agency and nonprofit clients for over 15 years.
She was one of the key lobbyists intimately involved in the
advocacy for House Bill 1189, authorizing tax increment
financing in Washington State. She is familiar with the legislative
intent behind the new statutory language and is prepared to
advise clients on how to use tax increment financing in a manner
consistent with what was intended by state policymakers.
More broadly, her clients have formally recognized her
exceptional service, professionalism, responsiveness, and
advocacy. She takes an information-driven, bi-partisan and professional approach to
lobbying and advocacy. Briahna’s knowledge of public policy issues and her ability to
strategically navigate Washington State government is an invaluable combination. Through
her advocacy for public agencies, she has developed expertise in advocating for issues
intersecting with state budgets, tax and finance, growth management, transportation,
criminal justice, housing, human services, and more. Briahna is respected and well-liked by
legislators from across the entire state of Washington and from both political parties.
Briahna graduated cum laude from Seattle University School of Law, where she also served
as a member of Seattle University Law Review. Briahna graduated summa cum laude from
Pacific Lutheran University with a Bachelor of Arts in Political Science and English-Writing.
She now lives in Tacoma, Washington.
Page 77 of 229
City of Pasco | Broadmoor Development TIF Project Analysis June 2022
46
Prepared by:
In association with:
Page 78 of 229
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Office of the Treasurer
State of Washington
Mike Pellicciotti
September 23, 2022
Dave Zabell, City Manager
City of Pasco
525 N 3rd Ave
Pasco WA 99301
Dear Mr. Zabell:
This letter confirms the Office of the State Treasurer’s (“OST”) receipt and review of the City of Pasco’s
(the “City”) tax increment financing (“TIF”) final project analysis provided on September 6, 2022. OST and
Piper Sandler, the state’s municipal advisor, have reviewed the provided material. Based on our review,
which is provided in the sections to follow, we believe the City’s project analysis meets the requirements
of RCW 39.114 (the “TIF Statute”).
Please note, this review is based on the information, projections, and assumptions provided by the City
and its consultants in the final project analysis. OST has not independently verified the data or its accuracy
or performed any feasibility analyses or projections of its own.
Executive Summary
Based on our review of the City’s project analysis, it appears that the Broadmoor Development (the
“Project”) is well situated to help meet increased demand for housing and commercial services in Pasco
and the growing Tri-Cities region.
In our review of the project analysis, one of our primary goals is to ensure that risks to the City are
adequately disclosed. As we describe further below, in this development, the primary risk to the City is
lower-than-expected tax allocation revenues as a result of delays in the construction of the private
development within the Tax Increment Area (“TIA”), or future assessed values in the TIA not matching
projections.
As with any large-scale development, there is a risk that a variety of factors could result in construction
delays or lower-than-expected assessed values. Such delays or reduced values, if severe enough, could
materially impact the tax allocation revenues expected to be derived from the Project.
To finance the public infrastructure improvements, the City intends to issue Limited Tax General
Obligation (“LTGO”) Bonds, which will be backed by the full faith and credit of the City. In the event that
tax allocation revenues are insufficient to fully pay the debt service on the LTGO Bonds, the full faith and
credit pledge would require the City to pay the remaining debt service due on the bonds from the City’s
general revenues. As shown in Tables 3 and 4, the projections contained in the project analysis indicate
that in each of the development scenarios, the City will be required to pay some portion of the debt
service due on the LTGO Bonds from general revenues, especially in early years, due to projected shortfalls
in tax allocation revenues.
Page 79 of 229
Page 2 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
More specifically, in the Aggressive Development Program, the projections indicate that the City will be
required to pay a portion of the debt service due on the LTGO Bonds from 2024 to 2027, and then will be
fully reimbursed from tax allocation revenues by 2034. In the Moderate Development Program, it is
expected that the City will be required to pay a portion of the debt service due on the LTGO Bonds from
2024 to 2030, and then will be fully reimbursed from tax allocation revenues by 2040. However, in the
Conservative Development Program, the projections show that the City will be required to pay a portion
of the debt service due on the LTGO Bonds in every year, and the City will never be fully reimbursed for
these expenditures.
Statutory Role and Purpose of Review
As enacted by the 2021 Washington State Legislature, RCW 39.114.020 requires that prior to the adoption
of an ordinance authorizing the creation of a TIF project area, the local government proposing the TIF
project area must provide a project analysis to OST for review. OST must complete the review within 90
days of receipt of the project analysis. Upon completing the review, OST must promptly provide to the
local government any comments regarding suggested revisions or enhancements to the project analysis
that OST deems appropriate. OST received the first draft of the City’s project analysis on July 22, 2022.
Project Overview
Issuing Jurisdiction:
City of Pasco
County:
Franklin County
Project Title:
Broadmoor Development
Development Team:
Broadmoor Properties, LLC (property owner),
Marcus & Millichap, Inc.,
PBS Engineering and Environmental Inc.
Municipal Advisor:
Northwest Municipal Advisors
Bond Counsel:
Foster Garvey P.C.
Bond Underwriter:
D.A. Davidson
Consultants:
Stowe Development & Strategies, LLC,
ECONorthwest,
Gordon Thomas Honeywell Governmental Affairs
In 2017, the City started planning for the Project by developing a master plan for a 1600-acre site, which
is situated in the geographical center of the Tri-Cities region. The City is planning to designate 671 acres
of this area as a TIA. At completion, the Broadmoor Development is expected to include single family
residential, multi-family residential, mixed-use, and commercial properties. The Broadmoor Development
is currently vacant land (except for an operating gravel pit), and as such, needs significant infrastructure
improvements, such as roads and utilities, in order for the planned development to take place.
The total cost for the TIA infrastructure improvements is estimated to be between $71 million and $84
million. The City expects to issue tax-exempt LTGO Bonds to fund approximately $33 million to $39 million
of these improvements. For the purposes of the TIF project analysis and this review, the assumed LTGO
Bonds issuance is $39 million. According to the project analysis, the developer(s) will be funding and
constructing approximately $39 million to $45 million of public infrastructure improvements.
Page 80 of 229
Page 3 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Tax Increment Area
The proposed TIA includes the entire Broadmoor Development site of approximately 671 acres. With the
exception of 220 acres consisting of the gravel and sand operation parcels, the entire site is vacant. The
assessed valuation of the TIA in 2022 is approximately $30 million, which is less than the statutory
limitations of $200 million and 20% of the City’s total assessed valuation of $8,065,205,983 (it is equal to
0.37% of the City’s total valuation).
Source: Broadmoor TIF Project Analysis, City of Pasco
Public Project Description and Timeline
Plans for the Broadmoor Development include public infrastructure improvements to be paid for by the
City, spread over approximately 29.3 acres of land. These planned public infrastructure improvement
projects in the TIA include arterial street construction; water, sewer, stormwater infrastructure; and
interstate ramp and intersection improvements. The improvements are broken into the following
categories and sub-components and detailed more completely in the City’s project analysis:
Corridors
- Sandifur Parkway – Bedford Street to Proposed Road 108
- Broadmoor Boulevard – Interstate 182 to Burns Road
- Road 108 – Harris Road to Sandifur Parkway
Interstate Associated Improvements
- Interchange Improvements - Interstate 182 at Road 100
Page 81 of 229
Page 4 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Intersections
- Burns Road / Broadmoor Boulevard
- Buckingham Drive / Broadmoor Boulevard
- Sandifur Parkway / Broadmoor Boulevard
- Extended Sandifur Parkway / Proposed Road 108
- Extended Sandifur Parkway / Proposed Road 103
- Road 108 / Road 103
The City-funded public infrastructure improvements are currently in the design stage with the $39 million
cost estimate based on a 30% design level. According to the project analysis, the projects are expected to
go to bid late in 2022 or early 2023, with construction beginning in March of 2023, and completion
expected by October 2023.
In addition to the City’s plans for the public infrastructure improvements described above, the owner of
the Broadmoor Development and/or future developers in the TIA will privately fund and construct
additional public infrastructure improvements. The privately funded infrastructure improvements are
expected to cost between $39 million and $45 million. The project analysis indicates that these privately
funded and developed improvements will be completed concurrently with the private development on
each parcel. It is important to note that to the extent the development projects are delayed we would
expect that some portion of the privately funded infrastructure improvements would also see a similar
delay, potentially having a negative impact on tax allocation revenues.
Private Development Timeline
The private development timeline varies depending on each scenario. Generally, development is expected
to begin in 2023 and continue through at least 2030. The development programs vary greatly in their size
and absorption rates. The table below summarizes the key development assumptions of the three
programs provided in the report. The City has identified the Moderate Development Program as the most
likely to occur.
Table 1
Aggressive Development
Program
Moderate Development
Program
Conservative
Development Program
Multi-Family Unit
Absorption Rate
300 units per year for 16
years, starting in 2023
150 units per year for 25
years, starting in 2023
150 units per year for 8
years, starting in 2023
Commercial
Development
Starting in 2024
Completed in 2030
Starting in 2025
Most completed by 2031
Starting in 2024
Most completed by 2030
Single Family Home
Absorption Rate
60 homes per year in a
4-year build-out
40 homes per year in a
6-year build-out
60 homes per year in a
4-year build-out
Final Year of
Development
Not indicated Not indicated No Development after
2030
Gross Development
Area
Reduced by 25% to account for internal circulation, open space, and landscaping
Page 82 of 229
Page 5 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Permits
At this point in time, our understanding is that there are no permits in place for the construction expected
to take place in the Broadmoor Development. The City’s consultant, Stowe Development & Strategies, is
confident that developers will be successful in getting the required permits, as they expect that the
proposed private development will be permitted consistent with the permitting jurisdiction's applicable
zoning and development standards. While we have no reason to doubt this assessment, it should be noted
that unforeseen delays in permits could negatively impact construction of the residential, commercial,
and mixed-use properties within the TIA, which in turn could negatively impact the amount and/or timing
of the tax allocation revenues the City expects to use to pay debt service on the bonds.
Financing Structure
The City anticipates issuing LTGO non-voted tax-exempt bonds to pay for its portion of the public
infrastructure projects in an amount not to exceed $39 million. According to the project analysis, the City
anticipates issuing the debt in late 2022 or early 2023 to coincide with the public infrastructure and private
development timelines.
The City plans to structure the LTGO Bonds with level debt service amortized over 25-years, with a 10-
year par call. The City does not currently expect to capitalize interest during the early years of the financing
when tax allocation revenues alone are not expected to be sufficient to cover debt service. Instead, the
City plans to pay any difference between debt service and tax allocation revenues from general City
revenues.
According to the project analysis, the City plans to reimburse itself for any feasibility studies, including
engineering design work, that occurred prior to the expected adoption of the Ordinance designating a TIA
in October 2022. The City also plans to reimburse itself for any general City revenues that are needed to
meet the City’s debt service payments associated with the TIF Infrastructure, to the extent sufficient tax
allocation revenues are available for such reimbursement.
Tax Allocation Revenue Projections
The construction of the planned private developments in the TIA is expected to begin in 2023 and continue
through at least 2030, with the assessed values beginning to hit the tax rolls in 2025 and continuing to
grow thereafter at different rates and varying timeframes depending on the development program. The
project analysis assumes that the assessed value of new construction is recognized one year after
completion. The City’s consultants indicated that they have confirmed with the Franklin County Assessor’s
Office that this is a reasonable assumption that is consistent with the Office’s property assessment
practices.
Through a combination of new construction and assessed value growth, the assessed value in the TIA is
projected to grow from approximately $30.0 million in 2022 to between approximately $1.0 billion and
$2.8 billion in 2048 (depending on the development program).
Page 83 of 229
Page 6 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Table 2
Incremental Assessed Value – Tax Year
2023 2028 2033 2038 2043 2048
Aggressive $0 $1,146,690,000 $2,080,970,000 $2,386,540,000 $2,570,980,000 $2,769,680,000
Moderate $0 $774,450,000 $1,681,750,000 $2,002,550,000 $2,173,350,000 $2,341,320,000
Conservative $0 $546,280,000 $825,400,000 $889,190,000 $957,910,000 $1,031,940,000
No TIF $0 $323,500,000 $348,500,000 $375,440,000 $404,450,000 $435,710,000
Source: Broadmoor TIF Project Analysis, City of Pasco
The project analysis indicates that the City will begin receiving tax allocation revenues in 2025. In the
Aggressive Development Program scenario revenues are forecast to be $680,000 in this initial year. These
revenues are projected to then increase substantially each year as new construction occurs through
completion. After 2030 revenue growth as a percentage decreases to just under 3% in 2032 before falling
to 1% in 2035 and remaining at approximately 1% growth per year thereafter. Revenue growth for the
Moderate Development Program follows the same relative pattern: large increases through 2032, an
almost 6% increase in 2033, and roughly 1% increases thereafter. The pattern for revenue growth in the
Conservative Development Program sees revenue growth leveling out earlier at 1% in the year 2032 as no
new development is assumed past 2030.
Projected Debt Service Coverage
It is important to note that the tax allocation revenue projections provided in the project analysis show
debt service coverage below 1.00x until 2028 in the Aggressive Development Program and until 2031 in
the Moderate scenario. Under the Conservative scenario tax allocation revenues never reach a sufficient
amount to fully cover debt service. During the period where tax allocation revenues are insufficient the
City will be required to fund the TIF debt service deficit with general City revenues or other City resources.
Depending on the pace and final features of the completed private development, the amount of debt
service shortfalls the City would be required to fund varies greatly.
In the Aggressive Development Program, the City will be required to fund debt service shortfalls
in years 2024 through 2027 with general City revenues and is fully reimbursed in 2034.
In the Moderate Development Program, the debt service shortfalls extend from 2024 to 2030 and
the City is fully reimbursed in 2040.
For the Conservative Development Program, debt service shortfalls will need to be funded with
general City revenues in every year bonds are outstanding, and the City will never be fully
reimbursed by tax allocation revenues.
The tables below summarize the total tax allocation revenues, revenue shortfalls and debt service
coverage of the three potential development programs.
Page 84 of 229
Page 7 of 12
Table 3
Development
Program
First Year Tax
Allocation
Revenues Exceed
TIF Debt Service
Year that TIF
Revenues
Reimburse Shortfall
Total
Projected
TIF Revenue
Total
Projected TIF
Debt Service
Projected
Maximum
Shortfall
Total
Surplus/
(Shortfall)
Total Debt
Service
Coverage Ratio
Aggressive 2028 2034 $91,890,000 $65,750,000 ($6,060,000) $26,140,000 1.40x
Moderate 2031 2040 $78,320,000 $65,750,000 ($9,220,000) $12,570,000 1.19x
Conservative Never Never $45,180,000 $65,750,000 ($20,570,000) ($20,570,000) 0.69x
Table 4
1. Total row for DSC reflects average coverage ratio.
2. Assumes interest rate of 4.50%.
Source: City of Pasco
Aggressive Moderate Conservative
Year
Tax
Allocation
Revenues
TIF Debt
Service
Surplus
(Shortfall)
Cumulative
Surplus
(Shortfall)
TIF DSC
Tax
Allocation
Revenues
TIF Debt
Service
Surplus
(Shortfall)
Cumulative
Surplus
(Shortfall)
TIF DSC
Tax
Allocation
Revenues
TIF Debt
Service
Surplus
(Shortfall)
Cumulative
Surplus
(Shortfall)
TIF DSC
2023
2024 0 2,630,000 (2,630,000) (2,630,000) 0.00x 0 2,630,000 (2,630,000) (2,630,000) 0.00x 0 2,630,000 (2,630,000) (2,630,000) 0.00x
2025 680,000 2,630,000 (1,950,000) (4,580,000) 0.26x 380,000 2,630,000 (2,250,000) (4,880,000) 0.14x 270,000 2,630,000 (2,360,000) (4,990,000) 0.10x
2026 1,480,000 2,630,000 (1,150,000) (5,730,000) 0.56x 760,000 2,630,000 (1,870,000) (6,750,000) 0.29x 640,000 2,630,000 (1,990,000) (6,980,000) 0.24x
2027 2,300,000 2,630,000 (330,000) (6,060,000) 0.87x 1,370,000 2,630,000 (1,260,000) (8,010,000) 0.52x 970,000 2,630,000 (1,660,000) (8,640,000) 0.37x
2028 2,790,000 2,630,000 160,000 (5,900,000)1.06x 1,880,000 2,630,000 (750,000) (8,760,000) 0.71x 1,360,000 2,630,000 (1,270,000) (9,910,000) 0.52x
2029 3,160,000 2,630,000 530,000 (5,370,000)1.20x 2,300,000 2,630,000 (330,000) (9,090,000) 0.87x 1,800,000 2,630,000 (830,000) (10,740,000) 0.68x
2030 3,580,000 2,630,000 950,000 (4,420,000)1.36x 2,500,000 2,630,000 (130,000) (9,220,000) 0.95x 1,870,000 2,630,000 (760,000) (11,500,000) 0.71x
2031 3,860,000 2,630,000 1,230,000 (3,190,000)1.47x 3,030,000 2,630,000 400,000 (8,820,000)1.15x 1,950,000 2,630,000 (680,000) (12,180,000) 0.74x
2032 3,970,000 2,630,000 1,340,000 (1,850,000)1.51x 3,350,000 2,630,000 720,000 (8,100,000)1.27x 1,970,000 2,630,000 (660,000) (12,840,000) 0.75x
2033 4,050,000 2,630,000 1,420,000 (430,000)1.54x 3,540,000 2,630,000 910,000 (7,190,000)1.35x 1,990,000 2,630,000 (640,000) (13,480,000) 0.76x
2034 4,100,000 2,630,000 1,470,000 1,040,000 1.56x 3,590,000 2,630,000 960,000 (6,230,000)1.37x 2,010,000 2,630,000 (620,000) (14,100,000) 0.76x
2035 4,140,000 2,630,000 1,510,000 2,550,000 1.57x 3,650,000 2,630,000 1,020,000 (5,210,000)1.39x 2,030,000 2,630,000 (600,000) (14,700,000) 0.77x
2036 4,180,000 2,630,000 1,550,000 4,100,000 1.59x 3,700,000 2,630,000 1,070,000 (4,140,000)1.41x 2,050,000 2,630,000 (580,000) (15,280,000) 0.78x
2037 4,220,000 2,630,000 1,590,000 5,690,000 1.60x 3,760,000 2,630,000 1,130,000 (3,010,000)1.43x 2,070,000 2,630,000 (560,000) (15,840,000) 0.79x
2038 4,270,000 2,630,000 1,640,000 7,330,000 1.62x 3,810,000 2,630,000 1,180,000 (1,830,000)1.45x 2,090,000 2,630,000 (540,000) (16,380,000) 0.79x
2039 4,310,000 2,630,000 1,680,000 9,010,000 1.64x 3,870,000 2,630,000 1,240,000 (590,000)1.47x 2,110,000 2,630,000 (520,000) (16,900,000) 0.80x
2040 4,350,000 2,630,000 1,720,000 10,730,000 1.65x 3,930,000 2,630,000 1,300,000 710,000 1.49x 2,130,000 2,630,000 (500,000) (17,400,000) 0.81x
2041 4,400,000 2,630,000 1,770,000 12,500,000 1.67x 3,970,000 2,630,000 1,340,000 2,050,000 1.51x 2,160,000 2,630,000 (470,000) (17,870,000) 0.82x
2042 4,440,000 2,630,000 1,810,000 14,310,000 1.69x 4,010,000 2,630,000 1,380,000 3,430,000 1.52x 2,180,000 2,630,000 (450,000) (18,320,000) 0.83x
2043 4,490,000 2,630,000 1,860,000 16,170,000 1.71x 4,050,000 2,630,000 1,420,000 4,850,000 1.54x 2,200,000 2,630,000 (430,000) (18,750,000) 0.84x
2044 4,530,000 2,630,000 1,900,000 18,070,000 1.72x 4,090,000 2,630,000 1,460,000 6,310,000 1.56x 2,220,000 2,630,000 (410,000) (19,160,000) 0.84x
2045 4,580,000 2,630,000 1,950,000 20,020,000 1.74x 4,130,000 2,630,000 1,500,000 7,810,000 1.57x 2,240,000 2,630,000 (390,000) (19,550,000) 0.85x
2046 4,620,000 2,630,000 1,990,000 22,010,000 1.76x 4,170,000 2,630,000 1,540,000 9,350,000 1.59x 2,270,000 2,630,000 (360,000) (19,910,000) 0.86x
2047 4,670,000 2,630,000 2,040,000 24,050,000 1.78x 4,220,000 2,630,000 1,590,000 10,940,000 1.60x 2,290,000 2,630,000 (340,000) (20,250,000) 0.87x
2048 4,720,000 2,630,000 2,090,000 26,140,000 1.79x 4,260,000 2,630,000 1,630,000 12,570,000 1.62x 2,310,000 2,630,000 (320,000) (20,570,000) 0.88x
Total1 91,890,000 65,750,000 26,140,000 1.40x 78,320,000 65,750,000 12,570,000 1.19x 45,180,000 65,750,000 (20,570,000) 0.69xPage 85 of 229
Page 8 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Debt Capacity
Based on the City’s total 2022 assessed value of $8,065,205,983, the City has $120,978,089 in total non-
voted debt capacity (1.5% of 2022 AV). The City currently has $23,920,000 outstanding non-voted debt,
leaving sufficient net non-voted debt capacity of $97,058,089 before the proposed $39,000,000 financing.
Table 5
2021 Assessed Valuation for 2022 Collections $8,065,205,983
Non-Voted Debt Capacity (1.5% of AV) 120,978,090
Less: Outstanding Non-voted Debt (23,920,000)
Current Net Non-Voted Debt Capacity 97,058,090
Less: Financing (proposed) (39,000,000)
Projected Remaining Non-voted Capacity $58,058,090
Projected % of Non-voted Capacity Remaining 48.0%
Source: Broadmoor TIF Project Analysis, City of Pasco
Interest Rate Assumptions
The debt service figures included in the project analysis assume interest rates for the TIA project bonds of
4.50% for an issuance in late 2022 or early 2023, with maturities ranging from 2024 through 2048. The
project analysis assumes a debt structure with level debt service, and that the bonds will be sold on a tax-
exempt basis.
While the 4.50% assumption appears to include some cushion compared to current market conditions,
interest rates are expected to continue rising over the near- to mid-term as the Federal Reserve continues
to battle inflation. A recent survey of market participants conducted by Bloomberg indicated that a majority
of economists expect that the Federal Open Market Committee will increase short-term interest rates by
an additional 1.25% by the end of 2022, when the City anticipates that it will sell the bonds for the TIA public
improvements.
Given the current level of interest rates, increased market volatility, inflation levels at 40-year highs, and
the market’s expectation for higher interest rates going forward, we encourage the City to maintain
conservative assumptions and monitor interest rates carefully as it moves forward with the Project. As
increases in interest rates will translate to higher debt service costs for the proposed bonds, interest rates
will remain a risk factor for the City until the bonds are sold.
City of Pasco Financials
The City provided Table 6 below, summarizing its historical financial performance and highlighting the cash
balance available to ensure the payment of debt service. As indicated in the footnote to Table 6, the
available cash balance consists of amounts from three City funds that would be considered to be generally
available in order to make debt service payments should tax allocation revenues prove insufficient to cover
all of the debt service on the proposed LTGO Bonds. The available cash balance has grown significantly over
the past five years from $22.6 million in 2017 to $57.6 million in 2021. The available cash balance is
budgeted to drop to $45.7 million by the end of 2022.
As shown in Tables 3 and 4, all three development programs indicate significant periods when projected tax
allocation revenues will not be sufficient to meet annual debt service requirements. Under the Conservative
Page 86 of 229
Page 9 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Development Program scenario there is a projected cumulative shortfall of TIF revenues compared to debt
service of $20.6 million. In the event of a temporary or long-term tax allocation revenue shortfall, the City
will need to rely on some combination of existing revenues, new non-property tax revenues generated from
the TIA, or cash balances to fund debt service payments associated with the bonds.
Table 6
Source: Broadmoor TIF Project Analysis, City of Pasco
Key Risks to the City
From our review of the project analysis, it appears that the Project is well-conceived and will provide
significant benefit to the City and region. Nonetheless, the Project comes with certain risks to the City,
primarily related to the sufficiency of projected tax allocation revenues to repay LTGO Bonds that the City
expects to issue to finance certain public infrastructure improvements.
During years with shortfalls, the City will be required to pay any difference between debt service due and
tax allocation revenues received from general City revenues. While the City plans to reimburse itself for
such debt service payments made from general City revenues, it is important for decision makers to be
aware of the potential magnitude and timing of such payments and reimbursements. In addition, since the
TIF legislation limits the ability to collect tax allocation revenues to a period of 25 years, delays could also
reduce the overall amount of tax allocation revenues that would be received by the City, limiting the City’s
ability to be fully reimbursed.
On a granular level, some of the various factors that could impact tax allocation revenues include permits,
interest rates, economic conditions, delays in construction, and future demand for/assessed value of the
property within the TIA.
Permits: Unforeseen delays in permits could negatively impact the construction of the expected residential,
commercial, and mixed-use properties within the TIA. Delays to either the public improvements or the
private developments could negatively impact the timing and/or amount of tax allocation revenues.
Page 87 of 229
Page 10 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Interest Rate Risk: The City is exposed to interest rate risk until its bonds are sold. The key assumption of a
4.5% interest rate for the LTGO Bonds offers a small amount of cushion compared to current market
conditions. Current market sentiments generally expect continued increases in interest rates, which could
produce debt service on the City’s bonds that exceeds the amounts assumed in the project analysis.
Economic Conditions: The timing of tax allocation revenues could be negatively impacted by a downturn of
economic conditions. The planned development is multi-faceted with commercial, mixed-use, multi-family
residential, and single-family residential components, and a variety of economic factors could negatively
impact the timeline and ultimate demand for development, jeopardizing the rate and scale of private
development and reducing potential tax allocation revenues.
Construction Delays: Any setback or hinderance to the private developers’ capacity for completing
construction projects could negatively impact tax allocation revenues. Whether the cost of the
improvements themselves or some unforeseen change in the developers’ ability to complete both their
public improvements and private developments, the City will remain responsible for repaying the LTGO
Bonds issued for the Project, once issued.
Assessed Valuations: As private developments are completed, tax allocation revenues may be less than
anticipated if the assessed value projections do not track projections. If assessed valuations come in lower
than expected, projected tax allocation revenues would be reduced.
Risk Summary: The general impact to the City, if any of the risk factors outlined above are realized and tax
allocation revenues end up being lower than expected, could be the requirement that the City apply some
amount of its general revenues or reserves towards the repayment of the LTGO Bonds, reducing the City’s
ability to allocate those funds to other projects or operations. Depending on the actual tax allocation
revenues received, it is possible that the City may not be fully reimbursed from tax allocation revenues for
such general fund expenditures.
Recommendations
The Broadmoor Development is a significant long-term and large-scale project. To help ensure the long-
term financial success of the Project and to minimize risk, we recommend the City carefully monitor the
risks identified and consider the following measures.
1. We recommend that the City discuss how much risk exposure is appropriate for the Project and
how much potential debt service costs it is willing to cover in order to advance the project through
years of tax allocation revenue shortfalls.
2. Given the general obligation pledge of the bonds, and the potential requirement for the City to
cover some amount of debt service costs from general revenues and reserves, we recommend the
City consider budgeting for and setting aside funds to cover potential tax allocation revenue
shortfalls.
3. As the project moves forward, coordinate closely with the Franklin County Assessor’s Office to help
ensure that the tax allocation revenue projections match the County’s assessment process and are
as realistic as possible.
Page 88 of 229
Page 11 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
4. The City’s interest rate assumptions contain only a small amount of cushion compared to current
market conditions. We recommend that the City consider using somewhat more conservative
interest rate assumptions, especially if the issuance of the bonds extends into 2023.
Thank you for the opportunity to review the City’s Broadmoor Development TIA project analysis. Based
upon the information provided to date in connection with this Project, this concludes our review. If there
are material changes in the scope, timing, or cost of the Project, please let us know. We wish the City all the
best with the Project.
Respectfully,
Mike Pellicciotti
Washington State Treasurer
Jason Richter
Deputy Treasurer
Page 89 of 229
Appendix Page 12 of 12
Legislative Building, P.O. Box 40200 Olympia, Washington 98504-0200
(360) 902-9000 TTY USERS: CALL 711 FAX (360) 902-9037
www.tre.wa.gov
Attachment A: Broadmoor Development TIA Timeline
City of Pasco Adopts TIA
Ordinance
October 2022
LTGO Bonds Issued
Late 2022 or Early 2023
TIA Public Improvments
Begin
March 2023
Broadmoor Development
TIA takes effect
June 1, 2023
TIA Public Improvments
Completed
October 2023
Private Development
Projects Begin
Throughout 2023
Tax Allocation Revenue
Collection Begins
2025
TIA Expires, LTGO Bonds
Mature, Tax Allocation
Revenue Collection Ends
2048Page 90 of 229
RESOLUTION NO. 4179
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
DECLARING ITS INTENT TO FORM A TAX INCREMENT AREA IN THE
BROADMOOR AREA
WHEREAS, for many years the City has been studying, evaluating, designing and
completing key infrastructure improvements to enable a mixed use development within the
Broadmoor area; and
WHEREAS, Broadmoor Properties, LLC owns over 400 acres of property that is being
planned for mixed use development and is in need of substantial infrastructure improvements to
support the desired development; and
WHEREAS, the Broadmoor area has the opportunity, if built, to serve as a significant
economic engine for the Pasco community providing for increased tax revenues to support City
services and providing significant employment opportunities for the residents of the City; and
WHEREAS,the Washington State Legislature,during its 2021 legislative session,enacted
Engrossed Substitute House Bill 1189 as Chapter 207, Laws of 2021, titled "AN ACT Relating to
tax increment financing" and codified as RCW 39.114, which authorizes local governments,
including cities, to carry out tax increment financing of public improvements needed to support
vital private economic development projects; and
WHEREAS, Tax Increment Financing (TIF) is a program that allocates revenues
generated from the increased assessed valuation of properties improved by the development that
are within a designated tax increment area (TIA) to pay for public improvements that are needed
to support the private development; and
WHEREAS, City management has identified the key preliminary TIF infrastructure
improvements in Exhibit A (shown as City TIF Projects) that have been identified at this time as
outside of a developer's ability to fund and achieve the desired development based on market
conditions necessary to accommodate commercial and mixed-use tenants; and
WHEREAS, the key preliminary TIF Projects have been estimated to cost approximately
24 million to $30 million to construct; and
WHEREAS, Broadmoor Properties, LLC will be dedicating approximately 24.3 acres of
land for the identified TIF Projects resulting in an average value range between $5,292,540 to
10,585,080 in project benefit; and
WHEREAS, City management and Broadmoor Properties, LLC have developed and
agreed upon the infrastructure responsibilities as shown in Exhibit A for each party necessary to
achieve the desired development; and
Resolution—Tax Increment Area- 1
Page 91 of 229
WHEREAS, City management anticipates bringing forward for Council consideration an
agreement between the City and Broadmoor Properties, LLC that memorializes the infrastructure
improvement responsibilities provided in Exhibit A; and
WHEREAS,the TIF law requires the City to prepare a Project Analysis when considering
forming a TIA which includes the following key items:
Boundaries and duration of the increment area.
A description of the expected private development within the increment area,
including a comparison of scenarios with and without proposed public
improvements (AKA the `But for" analysis — the development would not occur
but for"the public improvements).
A description of the public improvements,estimated public improvement costs, and
the estimated amount of bonds or other obligations expected to be issued.
Assessed value of real property within the increment area and an estimate of the
increment value and tax allocation revenues expected.
Estimate of the job creation reasonably expected to result from the public
improvements and the private development.
An assessment of any impacts and necessary mitigation to address impacts on the
following:
Affordable and low-income housing
Local business community
Local school districts
Local fire service; and
WHEREAS,the Project Analysis is expected to be completed by the end of May 2022 and
then submitted to the State Treasurer as required by TIF law, allowing the Treasurer 90 days to
review the analysis; and
WHEREAS, the City will conduct public briefings on the proposed TIA to inform the
community and other public agencies about the anticipated benefits and impacts associated with
the development; and
WHEREAS, the City Council will consider adoption of an Ordinance in September 2022
creating a TIA following any comments by the State Treasurer and testimony resulting from the
public briefings; and
WHEREAS,the City has created several preliminary development scenarios based on the
type and timing of development that may occur within the proposed Broadmoor TIA in which even
the most modest development scenario and timing would generate revenues (Exhibit B) sufficient
to support the necessary infrastructure improvements needed to support the private development;
and
WHEREAS, the City anticipates issuing LTGO (no-voted) tax exempt bonds to pay for
the identified infrastructure projects based on the additional TIA revenues from the Broadmoor
development; and
Resolution—Tax Increment Area-2
Page 92 of 229
WHEREAS, LTGO bonds pledge the City's tax revenues as a guarantee to receive the
best possible tax-exempt terms, and the City can pay debt service associated with these bonds with
any non-restricted tax revenue such as sales tax; and
WHEREAS, to mitigate the City's exposure related to the timing and scope of private
development and the projected TIA property tax revenues,the City will schedule the timing of any
bond debt issuance to coincide with certain development milestones (e.g., property closings,
entitlements obtained, etc.) that near term developments will move forward (if infrastructure
improvements are made by the City) providing for greater development certainty and additional
tax revenue beyond property taxes to help pay for any debt service; and
WHEREAS, as part of the above-mentioned Project Analysis, the City will refine the
projected TIA revenues,conduct a"but-for"analysis,coordinate with the other taxing entities,and
complete other items required by law.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
That the City Council directs the City Manager to develop a TIF program for the
Broadmoor area and prepare an Ordinance for Council's consideration to form a TIA in accordance
with state law.
Be It Further Resolved that the City Council supports the preliminary infrastructure
projects that are identified as described in Exhibit A and recognizes that such projects may be
refined as part of the City's TIF Analysis.
PASSED by the City Council of the City of Pasco, Washington, the 2nd day of May, 2022.
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM
J
r x9
e ra Barnham, CMC F g n La C
City Clerk City Attorney
Resolution—Tax Increment Area- 3
Page 93 of 229
Broadmoor Area Tax Increment Financing (TIF) Projects
Corridors
1. Sandifur Parkway—Bedford Street to Road 108
This work will consist of:
Road widening of the existing road from Bedford Street to Broadmoor Blvd.
Full road construction, including but not limited to, as much as 7-lanes of roadway and frontage
improvements on the north including curb/gutter, stormwater, sidewalk, street lighting and
landscaping and Curb/gutter and stormwater on the south side from Broadmoor Blvd. to Road
103.
Construction of a core road, including but not limited to, as much as 3-lanes of asphalt road
surface (toe-to-toe of curb)from Road 103 to Road 108.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this corridor from Broadmoor to Road 108.
2. Broadmoor Boulevard—Interstate 182 to Burns Road
This work will consist of:
Road widening of the existing road, west side only, including the addition of as much as 7-lanes
of asphalt roadway, curb/gutter, stormwater, muti-use pathway, and the relocation of existing
streetlights from interstate 182 to Sandifur Parkway.
Road widening of the existing road, west side only, including the addition of as much as 7-lanes
of asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and
landscaping from Sandifur Parkway to Buckingham Road.
Road widening of the existing road, west side only, including the addition of as much as 5-lanes
of asphalt roadway, curb/gutter, stormwater, muti-use pathway, street lighting, and
landscaping from Buckingham Road to Burns Road.
Utility adjustments of the existing utilities will be included in this corridor from Interstate 182 to
Burns Road.
3. Road 108—Harris Road to Sandifur Parkway
This work will consist of:
Construction of a core road, including but not limited to, as much as 3-lanes of asphalt road
surface (toe-to-toe of curb)from Harris Road to Sandifur Parkway.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this corridor from Harris Road to Sandifur Parkway.
Interstate Associated Improvements
4. Interchange Improvements- Interstate 182 @ Road 100
This work will consist of:
Improvements to the existing interchange including construction of an eastbound off-ramp and
intersection along with restriping.
A second phase shall include bike/ped facilities connecting north to south.
Intersections
5. Burns Road/ Broadmoar Boulevard
This work will consist of:
Full improvements to the existing intersection including signalization, widening, curb/gutter,
sidewalk with ADA ramps, street lighting, striping, and landscaping.
Page 94 of 229
Utility extension and/or adjustments of the existing utilities will be included within this
intersection.
This intersection will have participation in cost from other developers through a separate
participation technical memorandum, prepared by the City's consultant.
6. Buckingham Drive/Broadmoor Baulevard
This work will consist of:
Full improvements to the existing intersection including signalization,widening on the west
side, curb/gutter, stormwater, sidewalk with ADA ramps, street lighting, striping, and
landscaping.
Utility extension and/or adjustments of the existing utilities will be included within this
intersection.
The signalization will be provided by Broadmoor Properties, LLC.
7. Sandifur Parkway/ Broadmoor Boulevard
This work will consist of:
Full improvements to the existing intersection including signalization, widening, curb/gutter,
sidewalk with ADA ramps, street lighting, striping, and landscaping.
Utility extension and/or adjustments of the existing utilities will be included within this
intersection.
8. Sandifur Parkway/Road 108
This work will consist of:
Construction of a "core" roundabout that includes all the asphalt necessary to extend 2' past
the proposed final toe-of-curb/gutter.This effort will also include temporary gravel shoulder
drainage swale as well as striping and lighting as well as the full construction of a center truck
apron and landscaped feature and entry delineators including curb/gutter and internal
surfacing as determined.
Frontage improvements including curb/gutter, sidewalk, stormwater, and landscaping will be
completed by the parcel owner at the time of development.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this intersection.
9. Sandifur Parkway/ Road 103
This work will consist of:
Construction of a full intersection including signalization,widening, curb/gutter, stormwater,
sidewalk with ADA ramps, street lighting, striping, and landscaping.
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this intersection.
The signalization will be provided by Broadmoor Properties, LLC.
10. Road 108/Road 103
This work will consist of:
Construction of a core intersection, including but not limited to, as much as 3-lanes of asphalt
road surface (toe-to-toe of curb).
Construction of domestic water main, sanitary sewer main, and Irrigation main improvements
will be included within this intersection.
Stop control determined at time of design.
Page 95 of 229
Page 96 of 229
AGENDA REPORT
FOR: City Council October 6, 2022
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Darcy Buckley, Finance Director
Finance
SUBJECT: General Fund Revenue and Ad Valorem Tax (Property Tax) Presentation
I. REFERENCE(S):
2023 General Fund and Ad Valorem Presentation
Exhibit A - Property Tax Worksheet
Revenue Manual
Draft 2023 Property Tax Levy Increase Ordinance
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Council decision sets the City's share of the Ad Valorem (Property Tax) rate for
2023 collections. The impact on the General Fund is dependent upon option
selected. Option A includes no election to increase the levy by one percent levy
limitation. Option B includes the one percent increase of $118,181.
IV. HISTORY AND FACTS BRIEF:
The General Fund is the primary administrative and operational fund of the City.
As compared to the City-wide budget, activity recorded in the General Fund
represents 29% of revenues. Therefore, reviewing the results of current activity
is valuable for making budgetary projections and ad valorem tax decisions. While
prudent to undertake this analysis, RCW 84.55.120 also requires a public
hearing be conducted on General Fund revenue sources for the coming year’s
budget, including possible increases in the City’s property tax levy. Following the
revenue hearing, Council may choose to pass an ordinance that authorizes the
property tax levy for the coming year, 2023. The statutory increase in the levy is
limited to one percent of the highest levy to date. Additionally, the State statutory
Page 97 of 229
limit on City levy rate is $3.60 per $1,000 of assessed valuation. The City of
Pasco levy rate for 2022 was $1.465 per $1,000 of assessed valuation.
While property tax is a significant portion of the General Fund revenue, projected
to be 20% of General Fund revenue in 2022, other General Fund revenues
include sales tax, fees and charges for services, utility taxes, fines and penalties,
and other sources. The category of other sources is more variable and
dependent upon uncertain or infrequent events. Some examples are refunds,
interest earnings, donations, and transfers in from other funds for unique
projects. As the levy rate is set by the City annually, a public hearing and vote
separate from other routine budgetary decisions is required. As such,
consideration of the determination of the 2023 levy rate is the focus of this
narrative.
Those services typically viewed as governmental in nature are the same services
supported by property tax assessments and resulting revenues. Services
commonly viewed as essential government services, like public safety services
of police and fire are funded by the way of property taxes. Parks and recreation
functions and City sponsored community events also benefit from the collection
of property taxes. Finally, the functions of City administration, finance,
technological support and tools, and a myriad of other “internal services" are
funded partially from the dollars provided by property tax revenues. As outlined
in the Capital Improvement Plan, other governmental type funds, and their
capital projects, benefit from support of General Fund revenues and the funding
provided by property taxes. One current example of a General Fund supported
capital cost are the ongoing City Hall improvements.
Introduced and approved by voters of the State of Washington as Initiative 747
in 2001, the annual property tax levy can only increase by one percent, or the
value of the Implicit Price Deflator (IPD), whichever is less, over the levy of the
previous year. Any exception to this rule is dependent upon voter approval. While
the result of voting was Constitutionally challenged and overruled by the
Washington Supreme Court, the State’s Legislature determined to place the
standards outlined in the initiative into law. The current legal limit is the lesser of
1%, or the value of the Implicit Price Deflator.
The IPD is significantly different from the Consumer Price Index, or CPI. Unlike
the CPI, the IPD is not based on a fixed basket of goods and services in a
specified region. Instead, the goods and services included in the IPD basket
considers national inputs and is influenced by consumption and investment
patterns. The IPD as of September 25, 2022 was 6.457%, significantly over the
one percent limitation.
The levy calculation included in this presentation is based on estimates provided
by the Franklin County Assessor’s Office. Additionally, as the Assessor’s Off ice
is not allowed to set the levy to exceed the amount included in the City budget,
Page 98 of 229
the information provided in the estimated calculations and the rounded amount
will be utilize for presentation in the budget.
V. DISCUSSION:
For 2022, the Franklin County Assessor has provided a preliminary City
assessed valuation of $9.5 billion, which was used as the basis to calculate the
2023 property tax levy value. This amount includes new construction of
$496,115,323, an estimated change in State-assessed utility valuation of
$10,000 and Local Tax Incremental Financing assessed valuation of $710,800.
Option A reflects an estimated increase of $738,007 over the 2022 levy amount.
This change is the product of an increase in assessed valuation primarily due to
new construction in 2022. This option declines the statutorily allowed one
percent increase in the City property tax levy, an increase of $118,181. Instead,
given this option, the City will bank the capacity to levy the additional value in
the future. Important to this decision is the consideration that the City is not able
nor has oversight to ensure that its banked capacity remains intact. Based on
record-keeping of the Assessor’s Office it is possible, even if unlikely, that
breakdown in process or clerical error could result in a loss of formerly bank
capacity. The effect of new construction adds to the overall assessed valuation
of the City. As assessed value is the denominator by which the levy rate is
calculated an increase serves to reduce the levy rate for 2023. Based upon the
calculation of added new construction and the increased assessed valuation, the
levy rate for Option A is $1.316 per $1,000 assessed value. This new levy rate
is $0.149 less than the rate applied in 2022.
Option B includes the addition of the one percent statutory limit, or $118,181.
The levy rate resulting from this calculation is $1.328 per $1,000 assessed value.
Based on this calculation, the 2023 levy rate will be $0.137 per $1,000 assessed
value less than the amount levied in 2022.
Historically, Council has evaluated property tax levy decisions on current and
planned needs. For example, in 2019, Council determined to capture the City’s
banked levy capacity from prior years to fund capital improvemen ts like Fire
Stations 83 and 84 and the soon to be built Animal Shelter. For the years, 2020
and 2021, the assessment of a one percent levy increase was declined and the
capacity banked.
The past many years have been unprecedented. While contrary to initial
expectations, sales tax revenues for the City were strong and construction
activity remained robust. Current challenges related to supply chain interruptions
and delays coupled with inflationary cost pressures are troublesome and
introduce uncertainty where forecasting revenues and expenses are concerned.
Fortuitously, the many years trend of private investment and resulting community
Page 99 of 229
growth remains an anticipation. Certainly, both that addition of new citizenry and
businesses, and the resulting need to provide service and infrastructure to
benefit current and long-term Pasco constituents is an important aim of City staff.
As evidenced by the recently approved Capital Improvement Plan, infrastructure
will command much from City’s resources. One example of new expense related
to capital needs is the construction of planned Fire Station 85. Debt service on
a bond for construction financing equates to the addition of estimated debt
service of $585,000 annually for 20 years.
In order for the Franklin County Assessor to levy property taxes, the City is
required to certify property tax levies with the County by November 30 of each
year.
RECOMMENDATION:
In consideration of the above-noted factors and conditions, staff recommends
that Council select Option B; adopting the statutorily allowed one percent
increase in the City’s property tax levy instead of banking that capacity.
Page 100 of 229
General Fund Revenues
Annual review of General Fund revenue sources, including consideration of 2023 property tax levy.Page 101 of 229
General Fund The General fund is the City’s
primary operational fund. This fund
is used to record all resource
inflows and outflows that are not
associated with special-purposed
funds.
General Fund activity represents a
significant portion of City
operations. The 2021 -2022 Budget,
29 % of revenues and 27 % of
expenditures, respectively, were
accounted for in the General Fund.
Ambulance
4%
ARPA
4%
Construction
16%
Fudiciary
0%
General
29%
Internal Service
4%
Irrigation
1%
Other Special
Revenue
8%
PWRF
5%
Sewer
13%
Stormwater
1%
Streets
2%
Water
13%
% of City-wide Revenue
Page 102 of 229
46.66
49.76
57.00 58.66
68.68
64.13
$40
$45
$50
$55
$60
$65
$70
$75
2017 2018 2019 2020 2021 Anticipated 2022Millions of Dollars Total General Fund Revenues
Page 103 of 229
General Fund Revenue Capital investment in the City has resulted in a significant increase in Property Tax Revenue over the past many years. Between the prior biennium and the budget covering 2021 -2022; Property Tax Revenue is anticipated to increase by approximately 14 percent.
Charges and fees reflect a recovery from pandemic related decreases. This improvement is primarily reflected in parks and recreation activity return. Also, affecting this category in 2021 -2022 Biennium are plan check fees related to construction activity.
Construction related revenue has had a positive impact on the General Fund for the 2021 -2022 Biennium. Both Sales Tax Revenue and Building Permit Revenue Categories improved over the prior biennium. Revenues related to large projects are significant and infrequent.Page 104 of 229
General Fund Revenue Intergovernmental revenues are strong. This category is a combination of state shared revenues and grants primarily.Revenues for fines and penalties are lower in this Biennium as compared to prior years. The reduction is reflected solely in the traffic fines category.Other sources of revenue are trending lower for this biennium. These revenues are variable in nature; interest, donations, refunds and rebates, and transfers relate to one-time activities. Page 105 of 229
General Fund Revenues -TaxesDescriptionActual 2017-2018 Actual 2019-2020 Projected 2021-2022 Projected % Change
Over (Under) Prior
Biennium
2023-2024 Proposed
Budget
General Property Tax $ 16,316,052 $ 21,767,256 $ 24,812,334 14%$25,859,565
Other Tax 2,543,718 1,940,959 2,572,085 33%2,945,231
Retail Sales Tax 30,554,225 35,200,331 45,789,546 30%54,619,114
Utility Tax 18,409,878 23,041,598 21,578,349 (6%)21,855,003
Total Taxes $ 67,823,873 $ 81,950,145 94,752,314 16%$105,278,915
% of General Fund
Revenue 70%71%74%71%Page 106 of 229
General Fund Revenues –Fees & ChargesDescriptionActual 2017-2018 Actual 2019-2020 Projected 2021 -
2022
Projected %
Change Over
(Under) Prior
Biennium
2023-2024
Proposed Budget
Culture &
Recreation $ 506,174 $ 264,803 $ 498,607 88%$521,901
Economic
Environment 4,021,511 4,729,140 6,477,900 37%8,583,439
General
Government 6,395,207 6,909,983 7,913,706 15%7,625,909
Public Safety 3,296,090 2,824,809 3,355,935 19%4,139,587
Animal Shelter --17,905 0
Total Fees &
Charges $ 14,218,982 $ 14,728,735 $ 18,264,053 24%$20,870,836
% of General Fund
Revenue 15%13%15%14%Page 107 of 229
General Fund Revenues -IntergovernmentalDescriptionActual 2017-2018 Actual 2019-2020 Projected 2021-
2022
Projected %
Change Over
(Under) Prior
Biennium
2023-2024
Proposed Budget
City-County
Assistance $ 444,466 $ 223,172 $ 723,062 224%$400,000
Criminal Justice 217,468 234,278 259,208 11%287,791
Grants 534,875 3,793,485 4,082,569 8%2,744,106
Liquor Board
Profits 1,189,741 1,204,278 1,219,717 1%1,237,583
Liquor Excise Tax 714,277 909,432 1,096,787 21%1,367,980
Other 58,852 50,788 52,390 3%53,957
PUD Priviledge Tax 1,358,200 1,490,794 1,468,640 (1%)1,596,271
Total
Intergovernmental $ 4,517,881 $ 7,906,227 $ 8,902,373 13%$7,687,688
% of General Fund
Revenue 5%7%4%5%Page 108 of 229
General Fund Revenues –Permits & LicensesDescriptionActual 2017-2018 Actual 2019-2020 Projected 2021 -
2022
Projected % Change
Over (Under) Prior
Biennium
2023-2024 Proposed
Budget
Animal License Fees $ 463,068 $ 313,013 $ 177,590 (43%)$202,084
Building Permit 2,948,410 3,487,024 4,437,648 27%5,711,501
Business License
Fees 1,362,978 1,490,163 1,650,243 11%1,568,119
Other -License &
Permits 43,498 63,051 73,265 16%60,346
Total Licenses &
Permits $ 4,817,955 $ 5,353,252 6,338,746 18%$7,542,050
% of General Fund
Revenue 5%5%4%5%Page 109 of 229
General Fund Revenues –Fines & PenaltiesDescriptionActual 2017-2018 Actual 2019-2020 Projected 2021 -
2022
Projected % Change
Over (Under) Prior
Biennium
2023-2024 Proposed
Budget
Court $ 104,019 $ 83,545 $ 137,468 65%$100,977
Non-Traffic 234,667 884,933 1,111,959 26%1,168,582
Traffic 1,393,109 1,076,486 649,132 (40%)600,004
Total Fines &
Penalties $ 1,731,794 $ 2,044,964 $ 1,898,558 (-7%)$1,869,563
% of General Fund
Revenue 2%2%1%1%Page 110 of 229
General Fund Revenues –Other SourcesDescriptionActual 2017-2018 Actual 2019-2020 Projected 2021 -2022 Projected % Change
Over (Under) Prior
Biennium
2023-2024 Proposed
Budget
Contributions $ 145,699 $108,317 $ 101,982 (-6%)$114,196
Interest 507,182 686,091 381,472 (-44%)580,265
Other Misc 984,811 836,763 691,964 (-17%)2,962,997
Rent 657,534 551,417 545,449 (1%)760,979
Transfer In 1,014,545 1,500,153 953,492 (36%)450,106
Total Other Sources $ 3,309,771 $ 3,682,741 $ 1,761,951 (27%)$4,868,543
%of General Fund
Revenue 3%3%1%1%Page 111 of 229
Category of
Revenue
Actual 2017 -
2018
Actual 2019-
2020
Projected 2021-
2022
Projected %
Change Over
(Under) Prior
Biennium
Percentage over
2021-2022
Biennial Budget
2023-2024
Proposed
Budget
Taxes $ 67,823,873 $ 81,950,145 $ 94,752,313 16%7%$105,278,915
Fees & Charges 14,218,982 14,728,735 18,246,148 24%2%20,870,836
Intergovernmen
tal 4,517,881 7,906,227 8,902,373 13%14%7,687,688
Permits &
Licenses 4,817,955 5,353,252 6,338,746 18%9%7,542,050
Fine and
Penalties 1,731,794 2,044,964 1,898,558 -7%(8%)1,869,563
Other Sources 3,309,771 3,682,741 2,674,359 -27%(54%)4,868,543
Total General
Fund Revenues $ 96,420,256 $115,666,064 $132,812,497 15%4%$148,117,595
Percentage
Change 20%15%11%
Summary of All General Fund Revenues
Page 112 of 229
Ad Valorem Tax
•Ad Valorem Tax is more commonly termed Property tax.
•State law precludes any increase in property tax levy over 1% in any given year, and local governments with a population greater than 10,000 are limited a levy increase equal to the lesser of 1% or the rate of inflation, as determined by the Implicit Price Deflator (IPD).
•The IPD Rate as of September 25, 2022 is 6.457%. As such, the City has the option to increase its levy value by the full 1%.
•The IPD is an economic metric that accounts for inflation by converting output measured at current prices into constant dollar gross domestic product (GDP). The IDP measures the changes in prices for all goods and services produced in the economy.Page 113 of 229
Banked Capacity
•On any given year, the City may determine to forego the 1% annual increase to the levy amount. This decision means the levy value is the same as the prior year, plus the property tax assessed on new construction.
•Historically, when determined there is no budgetary needed increase, the City has chosen to “bank”, or reserve, its levy capacity.
•In 2019, the City recaptured all its banked capacity to fund major infrastructure projects. The primary focus of this action was the addition and relocation of Fire Stations in the City.
•The City banked its statutorily allowed 1% levy increases all years since the 2019 increase. The current banked capacity is $ 331,849.Page 114 of 229
General Fund Levy Options
OPTION A OPTION B
Assessed Value Current 2022 Tax Levy No Increase + New Construction 1% IPD + New Construction 2022 Levy $11,818,073 $11,818,073 $11,818,073
Value of 1% Increase $118,181Increase in State Utility AV (Est)$10,000 $10,000New construction (Est)$496,115,323 $726,966 $726,966Local Tax Incremental Financing $710,800 $1,042 $1,042Total Levy Amount $11,818,073 $12,556,080 $12,674,261Tax Levy Rate 1.465 1.316 1.328
Projected Additional
Levy Value $0 $738,007 $856,188Cost per $1,000 on a $360,000 AV Home $528 $474 $478Net Change ($54)$4 Page 115 of 229
2022 Comparison 2022 General Rate 2022 Total Rate*Tax CollectionCity of Richland $ 2.162 $ 2.329 $ 20,750,118 City of Kennewick $ 1.710 $ 1.710 $ 14,413,259 City of Pasco $ 1.465 $ 1.465 $ 11,818,073 *Includes voted bondsCost per $1,000 on a $360,000 AV HomeCity of Richland $ 839 City of Kennewick $ 616 City of Pasco $ 528 Page 116 of 229
2.39 2.25 2.22 2.00 2.00 1.97 1.97 1.97 1.96 1.95 1.94 1.88 1.75 1.94 1.81 1.71
1.47 1.32
$1.0000$1.2000$1.4000$1.6000$1.8000$2.0000$2.2000$2.4000$2.6000$2.8000$3.0000
200520062007200820092010201120122013201420152016201720182019202020212022PASCO PROPERTY TAX LEVY RATE HISTORY(GENERAL FUND PORTION) PER $1,000 OF ASSESSED VALUE
Estimate of Levy Rate for 2023 Page 117 of 229
2.0 2.3 2.5 2.9 2.9 3.1 3.2 3.3 3.5 3.7 3.9 4.2 4.8 5.5 6.1 6.7
8.1
9.5
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
200520062007200820092010201120122013201420152016201720182019202020212022Assessed Value In BillionsChange in Assessed Value
Page 118 of 229
Challenges
Employees are the foundation of City service delivery. Current staffing challenges have the potential to impact cost of service.
Recent years have been unusual. The pandemic brought higher than expected revenues. If continued, inflationary pressure may decrease sales tax revenues, accounting for approximately 35% of 2021-2022 budget. Recent history interjects uncertainty for future revenue expectations.
Growth of the City in the form of private development equates to needed growth in infrastructure and staff.Page 119 of 229
Questions?Page 120 of 229
General Fund Levy OptionsOPTION AOPTION BAssessed Value Current 2022 Tax LevyNo Increase + New Construction 1% IPD + New Construction 2022 Levy $11,818,073 $11,818,073 $11,818,073Value of 1% Increase$118,181Increase in State Utility AV (Est)$10,000 $10,000New construction (Est) $496,115,323 $726,966 $726,966Local Tax Incremental Financing $710,800 $1,042 $1,042Total Levy Amount $11,818,073 $12,556,080 $12,674,261Tax Levy Rate 1.465 1.316 1.328Projected Additional Levy Value$0 $738,007 $856,188Cost per $1,000 on a $360,000 AV Home $528 $474 $478Net Change($54) $4
Page 121 of 229
General Fund
Revenue Summary
Page 122 of 229
Taxes 2017-2018 Actual
2019-2020
Actual
2021-2022
Adopted Budget
2021-2022
Proposed
Amended Budget
General Property Tax 16,316,052 21,767,256 22,947,637 24,812,334
Retail Sales Tax 30,554,224 35,155,739 34,100,746 45,789,546
Utility Tax 18,409,878 22,907,648 22,584,924 21,578,349
Other Tax 2,543,719 1,940,959 1,922,780 2,572,085
Sub-Total Taxes 67,823,873 81,771,602 81,556,087 94,752,314
Fees & Charges
General Government 6,395,207 6,909,984 6,982,332 7,913,706
Public Safety 3,296,090 2,824,809 3,384,632 3,355,935
Culture & Recreation 506,174 264,802 465,727 498,607
Economic Environment 4,021,511 4,729,140 4,808,548 6,477,900
Sub-Total Fees & Charges 14,218,982 14,728,735 15,641,239 18,246,148
Intergovernmental
PUD Privilege Tax 1,358,200 1,490,794 1,198,267 1,468,640
Liquor Board Profits & Excise Tax 1,904,019 2,113,710 2,011,037 2,316,504
Grants 534,876 3,793,485 998,743 4,082,569
State Shared Revenues 982,271
Other 720,786 508,238 476,170 52,390
Sub-Total Intergovernmental 4,517,880 7,906,226 4,684,217 8,902,373
Licenses & Permits
Building Permit 2,948,409 3,487,024 3,684,978 4,437,648
Business License 1,362,979 1,277,719 1,452,466 1,650,243
Animal License 463,069 313,013 381,551 177,590
Other 43,499 63,052 46,786 73,265
Sub-Total Licenses & Permits 4,817,956 5,140,808 5,565,781 6,338,746
Fines & Forfeitures
Traffic 1,393,109 1,076,486 1,345,632 649,132
Non Traffic 234,667 884,933 1,115,602 1,111,959
Court 104,019 83,544 85,120 137,468
Sub-Total Fines & Forfeitures 1,731,794 2,044,963 2,546,354 1,898,558
Other Sources
Rent 657,535 551,417 651,945 545,449
Transfer in 874,333 452,987 1,269,762 953,492
Interest 507,182 686,092 570,507 381,472
Other 1,270,723 1,982,247 233,458 793,946
Sub-Total Other Sources 3,309,773 3,672,743 2,725,672 2,674,359
Total General Fund Revenue 96,420,260 115,265,078 112,719,350 132,812,498
Summary - General Fund Revenue Sources by Category
2%
16%
34%
19%
5%
0%
3%
6%
0%
3%
2%
1%
0%
0%
1%
3%
0%
1%
0%
1%
0%
1%
0%
Page 123 of 229
Taxes
Page 124 of 229
Revenue: Property Tax
Description:
Historical Data:
The Franklin County Assessor's Office establishes a value for all property for tax purposes. The cost of providing public services
determines property tax amounts. A property tax is an ad valorem tax on the value of a property, usually levied on real estate.
This revenue is used to support general governmental purposes like Police, Fire, Parks, and roads. Rates are expressed in "dollars per
$1,000 of assessed value (AV). The Washington State Constitution limits the annual rate of property taxes that may be imposed on
an individual parcel of property to 1% of its true and fair value. Hence, property tax revenue can be increased by the said 1%, plus
any new construction and annexation. The graphic below the chart shows the distribution of tax for local school districts
(maintenance, operation, bonds), to the state for local school support, to the City of Pasco, and to Franklin County.
Where Do Your Property Tax Dollars Go?
$2,014,697
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Property Tax Revenue
Actual Adopted Budget Proposed Amendments
Page 125 of 229
Revenue: Sales Tax
Description:
Historical Data:
Breakdown of Sales Tax
Rate 2021 Rates
State 6.5%
City/County (85%/15%) 1.0%
Transit 0.6%
Public Safety* 0.3%
Criminal Justice** 0.1%
Juvenile Detention 0.1%
Mental Health 0.1%
Total 8.7%
*RCW 82.14.450; 60% is retained by counties, remaining 40% is allocated to cities on a per capita basis
**RCW 82.14.340; County receives 10% of tax proceeds; remaining 90% is distributed to cities and unincorporated areas based on population
Where Do Sales Tax Dollars Come From?
Revenue from sales tax is used to support general City services, as well as for criminal justice and public safety purposes. Sales
tax is the largest revenue for City's General fund. A majority of the funds generated by the sales tax rate go to the state, with
a lesser percentage going to the City of Pasco and Franklin County. Retail trade, construction, wholesale trade, and
accommodation/food services are the economic sectors generating a majority of this tax revenue. Beginning January 2023,
City of Pasco sales tax rate increases to 8.9% in light of passage of the Pasco Public Facilities' successful election.
City of Pasco has a fairly diverse economy with approximately half of the City's sales tax being collected from retail activity, including automotive dealers. The chart
below illustrates the major sources for the City's retail sales tax earned between the years of 2019 - 2022 YTD remittances. The other category is comprised of
numerous economic sectors including, but not limited to, administrative support services, waste management and remediation, real estate rentals and leases,
transportation & warehousing, information services and manufacturing.
Accommodation and
Food Services, 6.8%
Construction, 2.6%
Information, ‐0.3%
Manufacturing, 0.4%
Other, 26.1%
Professional, Scientific, and
Technical Services, 2.6%
Real Estate Rental and
Leasing, 51.0%
Retail Trade, 2.2%
Transportation and
Warehousing, 0.0%Wholesale Trade, 8.5%
Sales Tax Revenue Sources
11,688,800
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Adopted & Proposed Amended Budget
Sales Tax Revenue
Actual Adopted Budget Proposed Amendments
Page 126 of 229
Revenue: Utility Tax
Description:
Historical Data:
Revenue: Other Tax
Description:
Historical Data:
This category includes leasehold, gambling, and admissions tax. Gambling tax applies to all card games, punch board games,
pull tabs, bingo games, raffles, and amusement games played within the City limits. An Admissions tax of 2.5% is levied
upon every person who pays an admission charge to any place within the City limits.
The City has the authority to tax 8.5% on utility revenue including water, sewer, garbage, irrigation, solid waste,
stormwater, electricity, telephone, and cable television. The City's general fund receives 7.5% of this tax, with remainder
being disbursed to the Overlay and Street funds. Beginning in 2019, the state requested all taxes be disbursed to General Fund
and transferred out to other funds.
(1,006,575)
(5,000,000)
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Utility Tax Revenue
Actual Adopted Budget Proposed Amendments
649,305
‐
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Other Tax Revenue
Actual Adopted Budget Proposed Amendments
Page 127 of 229
Fees & Charges
Page 128 of 229
Revenue: General Government
Description:
Historical Data:
Revenue: Public Safety
Description:
Historical Data:
The City uses these resources within the General Fund to provide finance, human resources, safety, and
administration services to all other funds within the City. The City uses a cost allocation plan, updated
on a regular basis, to adequately distribute administrative services costs to other funds. The largest
revenue source within this category is Interfund Administrative Services which totaled $3.2 Million in
2021.
The City uses these General Fund resources to provide services to external agencies like the Tri-Cities
Airport, Port of Pasco, and Pasco School District. A majority of these revenues are attributable to Airport
Rescue and Firefighting (ARF), Fire Protection Services (includes wildland firefighting), and School
Resource Officer (SRO) programs.
(28,697)
(500,000)
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Public Safety Revenue
Actual Adopted Budget Proposed Amendments
934,374
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
General Government Revenue
Actual Adopted Budget Proposed Amendments
Page 129 of 229
Revenue: Economic Environment
Description:
Historical Data:
Revenue: Culture and Recreation
Description:
Historical Data:
The City's Engineering Department provides services to all projects undertaken by the City. The revenue
received from providing these services flows into the General Fund. This category of revenue also
includes plan check, zoning, inspection, and State Environmental Protection Act (SEPA) fees.
The City's Parks & Recreation Department provides the public with variety of recreational services
including swimming lessons, and exercise classes. All revenues received for services provided by Parks &
Recreation flow into this category.
1,669,352
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Economic Resources Revenue
Actual Adopted Budget Proposed Amendments
32,880
-
100,000
200,000
300,000
400,000
500,000
600,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Culture & Recreation Revenue
Actual Adopted Budget Proposed Amendments
Page 130 of 229
Licenses & Permits
Page 131 of 229
Revenue: Building Permit
Description:
Historical Data:
Revenue: Business License Fees
Description:
Historical Data:
Building permit fees include basic building, mechanical, and electrical permit fees. Permit fee is based on
improvement value of the project. All building permits revenues are restricted to be utilized for development
services only.
Businesses located within the City, or that operate temporarily within the City, must obtain a business license.
The annual fee for a business license is a flat $80 plus $20 per full time equivalent employee (FTE).
0
0
197,777
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Business License Fees Revenue
Actual Adopted Budget Proposed Amendments
752,670
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Building Permit Revenue
Actual Adopted Budget Proposed Amendments
Page 132 of 229
Revenue: Animal License Fees
Description:
Altered Unaltered
One Year $ 15 One Year $ 55
Three Year $ 40 Three Year $ 160
Historical Data:
Animal licensing is required in the City for all dogs. Licenses are issued on a one or three year basis.
(114,000)
(200,000)
(100,000)
-
100,000
200,000
300,000
400,000
500,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Animal License Fees Revenue
Actual Adopted Budget Proposed Amendments
Page 133 of 229
Intergovernmental Revenues
Page 134 of 229
Revenue: Public Utility District (PUD) Privilege Tax
Description:
Historical Data:
Revenue: Liquor Board Profits and Excise Tax
Description:
Historical Data:
State and County collected revenue that is shared with schools, counties, and cities based on set of factors
including sales, location of dams and reservoir, and population. Tax is applied to public utility district
when it generates, distributes, and sells electricity. Due to the COVID crisis and the Governed utility
moratorium the revenue for 2021 has seen an decrease in collected utilities.
State-collected revenues that are shared with all cities are derived from liquor receipts (profits and excise
taxes). Cities get 40% share of the liquor board profits and 28% of the liquor excise tax receipts.
270,373
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
PUD Privilege Tax Revenue
Actual Adopted Budget Proposed Amendments
305,467
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Liquor Board Profits & Excise Tax
Actual Adopted Budget Proposed Amendments
Page 135 of 229
Revenue: Grants
Description:
Historical Data:
The City actively seeks grant funding from local, state, and federal agencies for a variety of programs that
benefit the City. The grants included as revenue for general fund are generally related to police and fire
services. City has also received Assistance for Fire Fighters grant to purchase SCBA equipment, and
Department of Ecology to purchase spill response boat.
3,119,254
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Grants Revenue
Actual Adopted Budget Proposed Amendments
Page 136 of 229
Fines & Penalties
Page 137 of 229
Revenue: Fines and Forfeitures
Description:
Historical Data:
Includes traffic and non-traffic fines and penalties. Traffic infraction fines are set by state supreme court,
however, non-traffic infractions are set by the City.
(647,796)
(1,000,000)
(500,000)
‐
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2017-2018 Actual 2019-2020 Actual 2021-2022 Projected
Fines & Forfeiture Revenues
Actual Adopted Budget Proposed Amendments
Page 138 of 229
Ordinance – 2023 Ad Valorum Tax - 1
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
PROVIDING FOR AN INCREASE IN THE REGULAR PROPERTY TAXES OF
THE CITY FOR LEVY IN 2022 AND COLLECTION IN THE 2023 TAX YEAR;
PRESERVING LEVY CAPACITY FOR FUTURE YEARS; AND PROVIDING
FOR RELATED MATTERS.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN
AS FOLLOWS:
§1. Findings and Determinations. The City Council (the “City Council”) of the City of
Pasco, Washington (the “City”), makes the following findings and determinations:
(a) RCW 84.55.120(1) provides that the City Council must hold a public hearing on
revenue sources for the following year’s current expense budget and that the hearing
must include consideration of possible increases in property tax revenues and must be
held prior to the time the City levies the taxes.
(b) RCW 84.55.120(3) provides that the City may not authorize an increase in property tax
revenue from the previous year except by adoption of a separate ordinance or
resolution, pursuant to notice, specifically authorizing the increase in terms of both
dollars and percentage.
(c) Pursuant to proper notice, the City Council held a public hearing on October 17, 2022
(the “Hearing”), to consider the City’s 2021 - 2022 revenue sources, along with
consideration of possible increases in property tax revenues.
(d) The City’s actual levy amount from the previous year was $11,818,073.
(e) The City has a population that is greater than 10,000.
(f) The City Council, after the Hearing and after duly considering all relevant evidence
and testimony presented, determined that the City requires 1% in allowable increase in
property tax revenue from the previous year, in addition to revenue resulting from the
addition of new construction and improvements to property, newly constructed wind
turbines, solar, biomass and geothermal facilities, if the facilities are not state assessed,
any increase in the value of state-assessed property, any annexations that have occurred
and any refunds made, in order to discharge the expected expenses and obligations of
the City and in its best interest.
§2. Property Tax Increase Authorized. An increase in the regular property tax levy of
the City is authorized for the levy to be collected in the 2023 tax year. The dollar amount of the
increase over the actual levy amount from the previous year is $118,181 (one hundred eighteen
thousand one hundred eighty-one dollars), which is a percentage increase of 1% (one percent) from
Page 139 of 229
Ordinance – 2023 Ad Valorum Tax - 2
the previous year. This increase is exclusive of additional revenue resulting from new construction,
improvements to property, any increase in assessed value due to construction of wind turbine,
solar, biomass and geothermal facilities, if the facilities are not state assessed, any increase in the
value of state assessed property, any annexations that have occurred, any refunds made, and any
increase in the value of a local tax incremental finance area in order to discharge the expected
expenses and obligations of the City and in its best interest.
§3. Transmittal. The City Clerk is authorized and directed to transmit a certified copy of
this ordinance to the Franklin County Assessor on or before November 30, 2022.
§4. General Authorization and Ratification. The City Manager, the Finance Director of
the City, the City Clerk and other appropriate officers of the City, and each of them acting alone,
are authorized and directed to take any action and to execute any document as in their judgment
may be necessary or desirable to effectuate the provisions of this ordinance. All prior actions in
furtherance of and consistent with the terms of this ordinance are ratified and confirmed.
§5. Effective Date. This Ordinance takes effect five (5) days after passage and publication.
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 Attorneys
Published: _____________________________
Page 140 of 229
AGENDA REPORT
FOR: City Council
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Darcy Buckley, Finance Director
Finance
SUBJECT: Ambulance Utility Rate Study
I. REFERENCE(S):
Pasco Ambulance Utility Rate Study Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
With Council approval of rate design, additional revenue for Ambulance
Services.
IV. HISTORY AND FACTS BRIEF:
The City recently completed a periodic Ambulance Utility rate analysis as part of
the biennial biennial budget process. As has been the case for the past several
years, the FCS Group (FCS) assisted the City in this effort.
The current rate of $16.20 per equivalent residential unit (ERU) was set in 2020.
Beyond reviewing the existing rate to assure rate requirements were being met,
the efforts were made in the evaluation to capture and analyze the impacts of
expected growth, user trends, and related costs, and consider those in the
development of rate policy moving forward. While the success of previous
adjustments to the utility rate, including implementation of ERUs and the GEMT
program has served the Fund well, additional information was needed to address
the financial impact of upcoming additional planned Fire Stations No. 85 in the
near-term, and plan for Fire Stations 86 and 87 in the out years of the analysis.
The addition of the fire stations, equipment and staffing will require increased
funding in the coming years. As a result of the recently awarded and accepted
Page 141 of 229
Staffing for Adequate Fire and Emergency Response (SAFER) grant that will
fund the staffing of Fire Station No. 85, a significant portion of the anticipated
rate revenue need will be avoided from 2023 through 2025. This external funding
allows for the City lessen the amount of rate increase necessary to fund the utility
over the next three (3) years, while allowing for enhanced services (Sta. 85
online), provides time for the City develop a plan to fully absorb Station 85 in
2026 and make plans for other future station additions.
As background, the ambulance utility for the City of Pasco was created in 2007
and is based on the authority outlined in RCW 35.21.766, which also places
additional constraints on the rate and costs. Limitations of the utility rate include,
not exceeding the total costs of the ambulance service and the inability of the
rate revenue to fund capital spending or major facility renovations. The Cost of
Service study includes two elements – Demand and Availability. Demand costs
are those costs associated with the actual response to incidents. Availabilit y
costs are those costs associated with the infrastructure and personnel that need
to be in place to have the ability to respond to incidents. The revenue
requirements to support Availability are the focus of the analysis shared tonight.
The revenue is collected by way of the monthly rate that is included with other
monthly service charges, like those for water or sewer service.
The Demand portion of the ambulance service has seen an increase in the total
number of incidents over the previous three years as has been described in
previous presentations of the 2021 Annual Performance Report as well as the
2021 Fire Department Master Plan. The Master Plan identified the needed
growth and made recommendations ensuring that appropriate funding was
identified to address the planned growth in all areas of the City.
The current utility rate generates revenues that are used to cover costs
associated with the existing four fire stations, apparatus, equipment and
personnel. The current level of service being provided to the City is out of those
four (4) fire stations using four (4) front-line ambulances with two (2) “hot”
reserves and one (1) “cold” reserve. The “hot” reserves have the ability to be
placed in service immediately for either times when additional staf fing is required
due to high incidents occurring or to allow maintenance on the front line units.
Additional staffing included in the ambulance utility is the Emergency Medical
Services (EMS) Officer and 50% of an assistant medical/training officer. These
individuals oversee the delivery of services and manage the associated
inventory, training, and regulatory requirements of the ambulance service.
V. DISCUSSION:
FCS Group worked with both the Finance and Fire Departments to gather data
regarding the planned growth and associated timing of new facilities and
personnel required to address the delivery of ambulance transport service within
Page 142 of 229
the City of Pasco. The study looked at the previous rate study completed in 2019
and then used three different aspects of the planned growth:
•Current level of service and opening Station No. 85 in 2023
•Prospectively opening new Station No. 87 in 2025, depending upon community
service demands
•Prospectively opening new Station No. 86 in 2026, depending upon community
service demands
The timing of bringing new fire stations online is one of the key elements in the
rate study. Fire Station No. 85 is anticipated to be online in late 2023. Current
thinking, based on anticipated growth, is that Fire Stations Nos. 86 and 87 will
need to be available for service as early as 2026 and 2025, respectively. Fire
Station No. 87 is planned to serve the east portion of Pasco, including the
developments in the Riemann Industrial Center. Fire Station No. 86 will serve
the Broadmoor area north of Interstate-182 as the development of the area
drives the demand.
Demand costs are covered by transport fees. Transport fees are assessed when
a patient is provided medical assistance, including hospital delivery. Beginning
in 2017, the City is a participant in the Ground Emergency Medical Transport
(GEMT) reimbursement program managed by Washington State Health Care
Authority. A requirement of the program is the calculation of an annual transport
cost. The current GEMT rate is $3,968. Currently, the City transport rate charged
to residents is $650 and nonresidents, $1,100. To maintain equity between
Availability and Demand charges, staff recommends adjusting the current
transport rates for both residential and nonresidential patients.
Additionally, the FCS study reviewed the need and basis for a potential charge
for non-emergency lift assist calls at licensed care facilities. These non-
emergency lift assist calls occur when a person falls and cannot lift themselves
back up into either a bed or chair. The mission of the Pasco Fire Department is
to respond to medical emergencies. A variety of State of Washington laws,
included in WAC-388, outline the rules and responsibilities of a licensed health
care facility. Included in this body of guidance is the expectation that a licensed
health care facility is sufficiently staffed and trained to respond to resident needs.
Furthermore, it clarifies that when a resident’s condition is medically stable or
non-acute, assistance from local government emergency medical services is not
appropriate. The aim of the guidance is to help care facilities staff appropriately
so that the emergency medical service system is not burdened. Currently, the
call for “Lift Assist”, non-emergency activity at licensed care facilities is small in
comparison to all calls for service. However, as licensed care facilities are added
to City of Pasco service areas the potential for impact increase s. It is also
important to note, even when small in numbers, a call for service for non -
emergency event has the same effect as an emergency call; a crew is engaged
and not available for other community needs.
Page 143 of 229
The intention for a “Lift Assist Fee” is to fashion a rate schedule like the one the
City employs for False Alarm Fees. Staff recommendation is to establish a rate
that is charged whenever a licensed care facility requests non -emergency Fire
Department of cost the responwill fee This service. offset nonto ding -
emergency, non-transport calls for service, and is hoped will incentivize licensed
health care facility to be sufficiently staffed and trained to respond to resident
needs.
An important consideration in the discussion around the addition of n ew Fire
Department capacity for service is the impact on the General Fund. While the
Fire Department is viewed and functions as a single department, there are two
sides of the “Station”; fire response and emergency medical service. As
infrastructure, apparatus, equipment and staff are added to the City as a Fire
Department Station, the General fund bears the full cost of capital building
expense and approximately half the cost of operations and maintenance for a
fire station. This approximate half of a station equates to $2.75M annually. The
fire response side of this complementary relationship does not have a dedicated
source of funding other than the regular revenues of the General Fund, primarily
tax revenues.
Because of this universal comingling of Fire and Ambulance service the exists
in a Fire Department, it is challenging to compare rates from one jurisdiction to
the next. Included in the presentation, Slide 17, are various metrics shared with
our arounmechanics Cities. Unfortunately, neighboring the d Fire how
Department services are accounted for, both directly and indirectly, between the
General Fund and Ambulance fund makes comparison challenging. While the
monthly availability rate between the three jurisdictions varies, so does the
population covered per station, the service area, volume of calls for service, and
density. Fire The City of Pasco currently assigns approximately half of
Department staff to the General Fund and the remaining half to the Ambulance
Fund. This assignment does not mirror the split between types of calls for
service. In 2021, the total number of incidents was 7,342. The number of EMS
calls was 4,626, or 63%. Calls for service that are not billable because they do
not qualify as medical emergencies are not included in the EMS category count.
However, these incidents are not a response related to fire suppression and
most times lean more toward personal health. Examples of those calls include
the introduction of the PRN program to suggest and coordinate other social
service care and lift assist activity. If costs were assigned by type of service
provided, more cost should be allocated to the Ambulance Fund. Also, the City
of Pasco General Fund provides a cash subsidy annually to the Ambulance Fund
of $420,000.
RECOMMENDATIONS:
Page 144 of 229
Staff fund fully results study to of implementation the recommends rate
Ambulance Utility operations, including Station No. 85 beginning January 2023.
This action will require increasing the monthly utility charge from $16.20 to
$16.66 in 2023, $17.42 in 2024 and $18.61 in 2025. In concert with the rate
study, these rates are reflective of the benefit of the SAFER grant for three (3)
years while progressively increasing to full Ambulance Fund (or 83% of revenue
requirements) revenue requirement billing.
Staff recommends an increase to the transport rate in January 2023 of 50% for
both residential and non-residential patients. While the percentage of increase
is large, the rate increase results in a transport rate of $975 and $1,650,
respectively. Even the remains rate magnitude, with of increase an this
insufficient to fund actual cost associated with transport service. Furthermore,
staff recommends an increase in the transport rate structure of 20% annually
until the rate mirrors the cost of service. Phasing in the cost incrementally will
result in a ten-year time frame to establish a transport rate that is approximately
83% of cost. Often the transport rate is paid by existing private insurance.
Payment arrangements are available should that accommodat ion be necessary.
Assist medically for Fee Lift of establishment the recommends Staff a
unnecessary services provided to licensed care facilities to offset the related cost
and thereby avoid shifting those expenses to all ratepayers of the service.
Finally, the study introduced tonight outlines the expected rate impact of the
addition of Stations Nos. 86 and 87. While growth and community demand for
service will dictate timing of construction, staff is desirous of Council input
surrounding timing of rate implementation as actual construction occurs.
stations decisions resulting the are consideration of in Paramount new
surrounding the appropriate timing of new fire stations, the funding mechanisms
to support the approximate $14 M in capital building cost, and the impact of
ongoing purchase. While apparatus the construction following costs and
anticipated revenue requirement to Ambulance ratepayers for the new stations
are outlined in the FCS study, the General Fund will also bear a portion of the
expense. The principle of growth paying for growth is an important consideration
for future planning. Faced with the demands of new station additions, staff
anticipates initiating a Fire Impact Fee study to ascertain opportunities.
Page 145 of 229
Slide 1FCS GROUP
Presentation to City Council
October 11, 2022
Martin Chaw, Project Manager
Skye Jiang, Sr. Analyst
Ambulance Utility
Rate Study 2022
Page 146 of 229
Slide 2FCS GROUP
About FCS Group
▪Utility rate and fee consulting
▪Utility management consulting
▪Financial planning and analysis
▪Economic servicesPage 147 of 229
Slide 3FCS GROUP
Scope of Work
Update previous ambulance utility rate study (2019)
-Current level of service + Open new Station #85 (2023)
-Depending upon growth, addition of new Station #87
-Depending upon growth, addition of new Station #86
Determine a proposed rate for non-emergency lift
calls for servicePage 148 of 229
Slide 4FCS GROUP
Ambulance Utility
●RCW 35.21.766 authorizes cities to form an ambulance utility
»Utility rates cannot exceed total costs
»Rate revenue funds cost of operating utility (includes apparatus, but cannot
include capital spending or major facility renovation)
●Cost of Service study required
»Demand –cost to respond to incidents
»Availability –cost to be on standby and available to respond to incidents
●City of Pasco’s ambulance utility
»Created in 2007
●Responded to over 7,300 incidents in 2021Page 149 of 229
Slide 5FCS GROUP
Fire Services in Pasco
St. #81
St. #82St. #83
St. #84
St. #85Page 150 of 229
Slide 6FCS GROUP
Trends in Incidents and Response Times
2019 2020 2021
Number of Incidents 5,842 6,194 7,342
Average Response time (minutes)6.07 6.35 6.03
Unit Notified to Enroute 1.20 1.23 1.04
Unit Enroute to Arrived at Scene 4.87 5.12 4.99
City Residential Population 75,432 76,379 78,700
Number of Incidents per 1,000
population
77.5 81.1 93.3
% Increase in Incidents per 1,000
population
4.6%15.0%Page 151 of 229
Slide 7FCS GROUP
Funding Fire Services
Fire
Services
Fire Impact
Fees
Ambulance
Utility Rates
General
Taxes
▪Fees assessed on new
development to fund
construction of fire stations
and apparatus
▪Collected over time as new
development occurs
▪Future study to update the
fire impact fees
▪Monthly rates assessed to
residents and businesses for
operation of ambulance
services
▪By City policy, ambulance
rates to recover 83%of
Ambulance Utility operating
costs
▪Continue to pay 17%of
Ambulance Utility operating
costs
▪Includes $420,000 annual
transfer from GF to
Ambulance Utility FundPage 152 of 229
Slide 8FCS GROUP
New Fire Stations
2023 2024 2025 2026
Station 85 (Fire engine + equipment +
Ambulance, 15FTEs)
Station 87 (Teleboom engine +
equipment, 12FTEs)
Station 86 (Fire engine + equipment +
Ambulance, 15FTEs)
*Photo: Teleboom fire truck
Forecasted station on-line
(depending upon growth)Page 153 of 229
Slide 9FCS GROUP
Analysis –Key Assumptions
Economic & Financial Factors
2022-2030 Annual Rate
General Inflation 6.0%
Labor Cost Inflation 6.0%
Benefit Cost Inflation 4.0%
Revenue Growth 3.2-5.2%*
Customer Growth 3.2-5.2%*
*Revenue and customer growth expected to increase in 2023 and 2024 due to additional
employment from new to City industrial and commercial growth.Page 154 of 229
Slide 10FCS GROUP
Fire Department Funding
$13.1 M $13.9 M $14.6 M $15.5 M $16.3 M
$7.6 M $8.0 M $8.4 M $8.9 M $9.4 M$20.7 M $21.9 M $23.1 M $24.4 M $25.8 M
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
2023 2024 2025 2026 2027MillionsCity of Pasco Fire Department Sources of Funding
(Current Level of Service + Station 85)
Ambulance Utility General Fund Subsidy TotalPage 155 of 229
Slide 11FCS GROUP
Ambulance Utility Sources of Funding
$6.9 M $7.6 M $8.2 M $8.9 M $9.6 M
$1.4 M $1.5 M $1.7 M $1.8 M $2.0 M
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
2023 2024 2025 2026 2027MillionsAmbulance Utility Sources of Funding
(Current Services incl. Station 85)
Ambulance Utility General Fund Subsidy
General Fund subsidy represents 17% of ambulance utility rate revenue requirements. Rate revenue requirement reflect total co st
of ambulance utility, less non-rate revenues (e.g., transport payments, WA State GEMT revenues, etc.).Page 156 of 229
Slide 12FCS GROUP
Ambulance Utility Rate Revenue Requirement ($M)*
with Station 85 Only
$6.9 M $7.6 M $8.2 M $8.9 M $9.6 M
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2023 2024 2025 2026 2027MillionsAmbulance Utility Revenue Requirement and Monthly Utility Rates
(Current Services incl. St.85)
Ambulance Utility
*Amounts shown reflect net operating costs, inclusive of new Station 85 (scheduled to open in 2023), less non-rate revenues
include ambulance transport fees, Washington State Ground Emergency Management Transportation payments.
$16.66**
per month
$17.42**
per month
$18.61**
per month
$20.31
per month
$21.22
per month
Current Monthly Rate: $16.20 per ERU(2022)
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.Page 157 of 229
Slide 13FCS GROUP
Ambulance Rates Phase-In Strategy
$16.66 $17.42 $18.61 $20.31 $21.22
$1.37 $1.22 $0.80
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2023 2024 2025 2026 2027Monthly RateMonthly Ambulance Utility Rates
(Current Services + Station 85)
Monthly Rate Phase-In Strategy
Current
Rate
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.
$18.03
without grant
$18.64
without grant
$19.41
without grant
$16.20
No SAFER
grant
No SAFER
grantPage 158 of 229
Slide 14FCS GROUP
Ambulance Utility Funding –New Stations 87 & 86
$6.9 $7.6 $8.2 $8.9 $9.6
$1.1 $1.1 $1.2 $1.2$1.5 $1.5 $1.6
$1.4
$1.5
$1.7 $1.8 $2.0
$8.3 M
$10.4 M
$13.0 M $13.9 M $14.9 M
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
2023 2024 2025 2026 2027MillionsAmbulance Utility Sources of Funding
(Current Level of Service + St. 85, 87, 86)
AU (Current+85)AU (87)AU (86)GF (Current+85)GF (87)GF (86)Total
Complementary General Fund operational cost for added Stations is not reflected. Only Ambulance Fund Costs are
in graph depiction.Page 159 of 229
Slide 15FCS GROUP
Ambulance Utility Rate Revenue Requirement
with New Stations 85, 86 and 87 ($M)
$7.2 M $7.8 M $8.4 M $9.1 M $9.9 M
$1.1 M $1.1 M $1.2 M $1.2 M$1.5 M $1.5 M $1.6 M
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2023 2024 2025 2026 2027AU Revenue Requirement ($M)Ambulance Utility Rate Revenue Requirement
(Current Services incl. St. 85, 87, 86)
Current incl St.85 Station 87 Station 86
Timing of rate impacts for Station 86 and 87 forecast only.
$16.66**
per month
$20.17**
per month
$24.73**
per month
$26.37
per month
$27.39
per month
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.Page 160 of 229
Slide 16FCS GROUP
Ambulance Rates Phase-In Strategy
$16.66 $17.42 $18.61 $20.31 $21.22
$2.75 $2.62 $2.67 $2.72 $3.50 $3.39 $3.45
$1.37
$1.49
$0.94
$16.66
$20.17
$24.73 $26.37 $27.39
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
2023 2024 2025 2026 2027Monthly RateMonthly Ambulance Utility Rate
(Current Services incl. St. 85, 87, 86)
Monthly Rate (Current + St85)St 87 St 86 Phase-In Strategy Total
Current
Rate
**SAFER grant available to fund personnel costs for Station 85, and will allow City to phase-in rates over 3-year period.
$16.20Page 161 of 229
Slide 17FCS GROUP
Comparison with Jurisdictions
Richland Kennewick Pasco
Current (2022) Monthly Ambulance
Utility Rate $10.00 $14.12 $16.20
Levy Collection 2022 $19.2M $14.4M $11.8M
Residential Population 59,609 87,649 77,326
# of Fire Stations 5 5 4
# of People Covered per Station 11,920 17,530 19,330
Service Area (in square miles)42.7
(excludes Hanford)29.2 37.5
# of Square Miles Covered per Station 8.6 5.8 9.4
Ambulance Calls for Service (2020)5,299 7,357 4,626
Ambulance Calls per Station 1,060 1,471 1,157
Density (pop per square mile)1,544 3,057 2,271Page 162 of 229
Slide 18FCS GROUP
Non-Emergency Lift
2019 2020 2021
Number of non-emergency lift incidents 204 283 252
Number of Incidents per 1,000 population 2.7 3.7 3.2
% Increase in Incidents per 1,000 population 37%-14%
●Currently no fee assessed for non-emergency lifts
●To offset any costs, Staff recommends establishment of a penalty fee to licensed
care facilities. Page 163 of 229
Slide 19FCS GROUP
Conclusions & Next Steps
●Next Steps
»Increase rates to fully fund Ambulance Utility
operations, including new stations 85 (eff Jan 2023)
»Discussion related to growth and resulting community
needs to guide timing of construction of new stations 86
and 87
●Questions?Page 164 of 229
Slide 20FCS GROUP
Thank you!Page 165 of 229
AGENDA REPORT
FOR: City Council October 3, 2022
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Steve Worley, Director
Public Works
SUBJECT: Butterfield Water Treatment Plant Facility Plan
I. REFERENCE(S):
Butterfield WTP Facility Plan Executive Summary
PowerPoint Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Improvements to the City’s potable water treatment and distribution systems
are funded by water utility rates which are reviewed and updated on a periodic
basis. The most recent water utility rate study included anticipated needs out to
2026. The facility improvements proposed by this Facility Plan align with
estimated costs included in the most recent rate study for the Butterfield Water
Treatment Plant (Butterfield WTP). The sequence of projects proposed in the
Facility Plan has been optimized to increase eligibility for the pursuit of external
funding, which if successful will minimize future rate increases.
IV. HISTORY AND FACTS BRIEF:
The City’s potable water is provided by two different water treatment plants. The
Butterfield WTP produces approximately three quarters of the City’s drinkable
water needs and is critical for residents, businesses, industrial users, and fire
suppression systems. Drinking water plants are typically anticipated to have a
service life of 50-80 years (Reference: EPA Clean Water and Drinking Water
Infrastructure Gap Analysis, EPA-816-R-02-020, September 2002). The core
components of the Butterfield WTP were constructed in 1946 and 1958, making
them 75 and 63 years old respectively.
Page 166 of 229
To assist in long-term planning for the facility, the City selected Carollo
Engineers, Inc. (Carollo) in July 24th, 2020, to help develop a Facility Plan for
needed improvements to the Butterfield Water Treatment Plant. The planning
process includes a condition assessment and hydraulic analysis of the existing
facility to identify improvements needed to continue providing potable water for
the next 50 to 80 years. The objectives that guided the development of the plan
include:
1. Increasing the current plant's treatment capacity.
2. Increasing resiliency in each of the treatment processes.
3. Providing the ability to expand further.
4. Replacing infrastructure nearing the end of its service life.
Desired levels of service were also developed. The final result is a series of
recommended projects that will allow the City to provide the targeted levels of
service for many years to come.
Having an approved Facility Plan will inform future Capital Improvement Program
(CIP) planning and biennial budget efforts. Following approval of the Facility
Plan, staff will initiate the first series of recommended projects.
The Butterfield WTP Facility Plan Executive Summary is provided as an
attachment. The complete facility plan is also available for download
at:https://www.pasco-wa.gov/789/Comprehensive-and-Improvement-Plans.
V. DISCUSSION:
Carollo Engineering, Inc. staff will present a brief overview of the final Butterfield
WTP Facility Plan.
Page 167 of 229
City of Pasco
BUTTERFIELD WATER TREATMENT
PLANT FACILITIES PLAN
FINAL | September 2022
Page 168 of 229
BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | i
pw://Carollo/Documents/Client/WA/Pasco, City of/12011A00/Deliverables/Butterfield WTP Facilities Plan/Cover, Seal Page, TOC, Abbreviations, Appendices
Contents
Executive Summary
ES.1 Introduction ES-1
ES.2 Water Treatment Plant Performance Requirements ES-2
ES.2.1 Water Quality ES-2
ES.2.2 Identifying WTP Hazards and Establishing Level of Service Goals ES-7
ES.3 Water Treatment Plant Process Assessment ES-8
ES.3.1 Hydraulic Evaluation ES-8
ES.3.2 Process Evaluation ES-9
ES.4 Water Treatment Plant Infrastructure Assessment ES-10
ES.4.1 Water Treatment Plant Assessment Results ES-10
ES.4.2 Project Development and Criticality Assessment ES-13
ES.5 Alternatives Identification and Evaluation ES-14
ES.5.1 Drivers for WTP Improvements and Considerations ES-14
ES.5.2 Screening of Treatment Technologies and Alternatives Analysis ES-15
ES.6 Capital Improvement Plan Summary ES-19
Page 169 of 229
BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | xiii
Abbreviations
AACE AACE International
alum aluminum sulfate
AOP advanced oxidation processes
Avg average
BF ballasted flocculation
BNSF BNSF Railroad
CFD computational fluid dynamic
CIP capital improvement plan
City City of Pasco
Cl2` chlorine
CT contact time
DAF Dissolved Air Flotation
DBP disinfection by-product
DOH Washington Department of Health
Ele electrical
EPA United States Environmental Protection Agency
ft foot/feet
ft2 square foot
gal gallon
gal/ft2 gallons per square foot
gpm gallons per minute
gpm/ft2 gallons per minute per square foot
HART highway addressable remote transducer
hp horsepower
I/O input / output
lbs pounds
lbs/ft2 pounds per square foot
LOS level of services
Max maximum
MCC motor control center
Page 170 of 229
CITY OF PASCO | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN
xiv | SEPTEMBER 2022 | FINAL
mg/L milligrams per liter
mgd million gallons per day
min minute
mm millimeter
Mn Manganese
N/A not applicable
NPV net present value
NTU nephelometric turbidity unit
O&M operations and maintenance
OSHG on-site hypochlorite generation
PAC powdered activated carbon*
Plan Butterfield Water Treatment Plant Facilities Plan
PLC programmable logic controller
PPCP Personal Care Products
Pro process/mechanical
psi pounds per square inch
RTU radio telemetry unit
SCADA supervisory control and data acquisition
scfm standard cubic feet per minute
scfm/ft2 standard cubic feet per minute per square foot
sec second
TOC total organic carbon
TOMATo Taste, Metal, Odor, and Algal Toxins
TON threshold odor number
TTHM total trihalomethanes
UCM Unregulated Contaminant Monitoring
UCMR Unregulated Contaminant Monitoring Rule
UCMR3 Unregulated Contaminant Monitoring Rule 3
UCMR4 Unregulated Contaminant Monitoring Rule 4
USACE US Army Corps of Engineers
USPR unit solids production rate
UV Ultraviolet
Page 171 of 229
BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | xv
V volt
VFD variable frequency drive
VOC volatile organic contaminant
WSE water surface elevation
WSMP Water System Master Plan
WTP water treatment plant
Page 172 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-1
ES
EXECUTIVE SUMMARY
This facilities plan (Plan) evaluates the City of Pasco’s (City) Butterfield Water Treatment
Plant (WTP) which includes identifying treatment and capacity deficiencies and comparing new
and existing treatment technologies for addressing water quality concerns, to provide a path
forward for repairing and replacing the WTP’s infrastructure.
This Plan defines a capital improvement strategy for addressing WTP deficiencies so the City can
have a long-term, resilient WTP capable of supplying future demands. This Plan was developed
over multiple years and encompasses a 20-year planning horizon from 2023 to 2042.
ES.1 Introduction
The Butterfield WTP was originally constructed in 1946 as a direct filtration facility having a
pre-sedimentation basin, coagulation basin and four dual cell filters. Throughout the years,
major additions have been made to the WTP infrastructure including adding sedimentation
basins and filters (in 1958), modifying pre-sedimentation basins and associated structures to
create new chemical facilities (1985), and adding a fluoridation building (1999). The nominal
rated capacity is 30 million gallons per day (mgd).
Figure ES.1 shows the facilities associated with the Butterfield WTP.
Figure ES.1 Overall Plan
Page 173 of 229
CITY OF PASCO | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | EXECUTIVE SUMMARY
ES-2 | SEPTEMBER 2022 | FINAL
Figure ES.2 shows the existing WTP site in more detail with the major facilities labeled.
Figure ES.2 Butterfield WTP - Major Facilities
The WTP is a conventional media (sand and anthracite) filtration plant. Typical operation is as
follows:
• Water is pumped from the Columbia River through Rapid Mix to the Flocculation and
Sedimentation Basins.
• Water then flows through the filters and to the clear well.
• The finished water is pumped from the clear well to the distribution system.
• Residuals streams are directed to the Lagoons. After allowing the solids in the
Lagoons to settle, decanted water is pumped back to the Columbia River, downstream
of the WTP intake by the backwash lift station.
ES.2 Water Treatment Plant Performance Requirements
ES.2.1 Water Q uality
Carollo Engineers, Inc. (Carollo) reviewed water quality data for the raw, finished, and
distribution-system water to identify any potential challenges of meeting existing regulations.
TableES.1 summarizes the water quality data.
Turbidity: The average raw water turbidity is approximately 1.1 nephelometric turbidity
unit (NTU), and the median monthly turbidity is consistently below one NTU most of the
year. Raw water turbidity is higher and more variable in spring due to increased flow in the
Columbia River; however, the turbidity never exceeded 10 NTU in the dataset.
Manganese: The most recent testing, 2008, measured raw water manganese at 0.016 milliliter
per gram (mg/L), much lower than the secondary maximum contaminant level (SMCL) of
0.050 mg/L. No treatment challenges are anticipated regarding manganese at the WTP.
Page 174 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-3
Iron: The most recent testing, 2008, measured raw water iron at 0.30 mg/L, equal to the SMCL.
Surface water sources like the Columbia River generally have particulate iron, which is readily
filtered so it is not anticipated to be of concern.
Total Organic Carbon (TOC): Raw water TOC is generally low, with an average of 1.3 mg/L,
which is consistent with other water sources in the region. TOC is highest in spring.
Inorganic Compounds (IOC), Synthetic Organic Compounds (SOC), and Volatile Organic
Compounds (VOC): The City has collected grab samples for IOC, SOC, and VOC. Testing showed
the following:
• All IOCs were well-below the maximum containment level (MCL).
• SOCs were not detected in the finished water.
• Two VOCs, both disinfection byproducts (DBP), were detected in the finished water.
These DBPs are associated with chlorine use, and currently regulated as
trihalomethanes (THM). The total trihalomethane (TTHM) measurement was well below
the MCL.
Radionuclides: Radium was detected in 2015, so the WTP is required to test for Radium 228. The
sample (1.2 picocuries per liter of air [pCi/L]) was below the combined radium (Radium 226 and
Radium 228) MCL (5.0 pCi/L). Since radium 226 was not measured during sampling, it is unknow
whether the MCL for combined radium was exceeded. Radium 228 was tested again in 2021 and
was non-detect.
Emerging contaminants: Carollo reviewed data for emerging contaminants, those that may be
regulated in the future, under the United States Environmental Protection Agency’s (EPA)
Unregulated Contaminant Monitoring Rule (UCMR).
In UCMR3, five contaminants (chromium, molybdenum, strontium, vanadium, and chlorate)
were detected; however, all were below the health-based reference concentrations.
In UCMR4, one inorganic (manganese) and three disinfection byproduct (sum of five haloacetic
acids [HAA5], HAA6Br, and HAA9) contaminants were detected. Manganese and HAA5 and both
were below their reference concentrations. The EPA did not provide reference concentrations
for HAA6Br or HAA9. Nevertheless, comparing these compounds against the HAA5 MCL
(60 micrograms per liter [µg/L]) is conservative, since HAA6Br and HAA9 include additional
HAAs, making them higher. Since HAA6Br and HAA9 were below the HAA5 MCL, they are not
anticipated to be of concern under current treatment operations.
Cyanotoxins: No cyanotoxins (algal toxins) were detected in the WTP’s finished water during
UCMR4 testing; however, cyanotoxins are becoming more prevalent in the Pacific Northwest.
Currently, the WTP adds potassium permanganate to treat taste and odor challenges associated
with algal activity which also oxidizes certain cyanotoxins (anatoxin-a and microcystin);
however, raw water is not typically sampled for cyanotoxins. Carollo has recommended testing
for algal toxins on a semi-regular basis, during the summer months, on both the raw and finished
water, and to consider future infrastructure in planning footprint.
Finally, Carollo and the City established finished water quality goals for the WTP using water
quality analysis in Chapter 2. In general, these goals meet all federal and state drinking water
standards, and the review of finished water quality confirms that the City consistently meets or
exceeds existing requirements.
Page 175 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-5
Table ES.1 Summary of Raw and Finished Water Quality
Constituents Unit Finished Water MCL Number of Samples Number of Detects Value Range(2) Average Median
Summary of Raw Water Quality
General
Temperature(3) °C 1853 2.8 - 21.3 12.6 12.4
Turbidity(1) NTU Treatment technique. ≤0.3 NTU for 95% of samples.
<1.0 at all times 1853 0.5 - 3.2 1.1 0.75
Alkalinity(3) (6) mg/L as CaCO₃ None 1853 48 - 66 57.8 58
Total Organic Carbon(4) mg/L 35% reduction in TOC if raw water TOC is 2 - 4 mg/L.
45% reduction if raw water TOC is 4 - 8 mg/L 21 1.1 - 1.5 1.3 1.2
Secondary Constituents
pH(3) (6) - 6.5 - 8.5 1853 8 - 8.35 8.1 8.15
Hardness(3) mg/L as CaCO3 250 1853 1853 59 - 78 68.4 68
Summary of Finished Water Quality
General
Turbidity(1) NTU
Treatment technique.
≤0.3 NTU for 95% of samples.
<1.0 at all times
7405 7405 0.024 - 0.044 0.03 0.03
Alkalinity(3) (6) mg/L as CaCO₃ None 1853 1853 50 - 65 57.6 58
TOC(3) mg/L 35% reduction in TOC if raw water in TOC is 2-4 mg/L.
45% reduction if raw water TOC is 4 - 8 mg/L 21 21 0.71 – 0.95 0.83 0.83
Total Dissolved Solids(5) mg/L 500 2 2 107 - 110 108.5 108.5
Secondary Constituents
pH(3) (6) - 6.5 - 8.5 1853 1853 7.4 - 7.56 7.5 7.5
Chloride(5) mg/L 250 2 2 4 - 4.7 4.4 4.35
Sulfate(5) mg/L 250 2 2 20.6 - 22 21.3 21.3
Zinc(5) mg/L 5 2 1 0.002 0.002 0.002
Notes:
Abbreviations: °C - degrees Celsius; CaCO₃ - calcium carbonate.
(1) Recorded every 4 hours plant in operation in Daily Plant Logs. Data from June 2015 to June 2020.
(2) Value range represents 5th and 95th percentile.
(3) From Daily Plant Logs. Data from June 2015 to June 2020.
(4) From quarterly TOC report to the Washington Department of Health (DOH) from March 2015 to March 2020.
(5) From March 2011 and April 2020 IOC Report.
(6) The City of Pasco has a finished water pH and alkalinity goal of 7.5 and 25 mg/L (as CaCO₃), respectively.
Page 176 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-7
Table ES.2 Summary of Distribution System Water Quality
Contaminant Units Regulatory Limit Value Range Median
DBPs
TTHM(1) µg/L 80 22.3-38.9(2) 31.8
HAA5(1) µg/L 60 14.4-32.5(2) 24.3
Disinfectant Residual
Monthly Average Chlorine Residual(3) mg/L 4 0.49-0.82 0.68
Contaminant Units Regulatory Limit 90th Max
LCR
Lead(4) 6/2017 mg/L 0.015(5) 0.002 0.002
6/2020 mg/L 0.015(5) 0.0015 0.0015
Copper(4) 6/2017 mg/L 1.3(5) 0.281 0.281
6/2020 mg/L 1.3(5) 0.167 0.1670
Notes:
Abbreviation: LCR - Lead and Copper Rule.
(1) Includes all quarterly sampling for DBPs at all sites in the distribution system from June 2015 to June 2020.
(2) Value range based on locational running annual average values.
(3) Chlorine residual sampling was done at all sites in the distribution system from June 2015 to June 2020.
(4) Samples taken in June 2017 and June 2020.
(5) Compliance based on 90th percentile of samples from a required sampling period exceeding the action level. Proposed
rule revisions would reduce lead action levels to 0.010 mg/L.
ES.2.2 Identifying WTP Hazards and Establishing Level of Service Goals
Carollo identified several potential hazards based upon the Hazard Vulnerability Analysis
provided in the Franklin County Emergency Management Plan (2015) and Carollo’s experience at
similar WTPs in the Pacific Northwest.
After identifying hazards, Carollo and the City established level of service (LOS) goals defining
WTP performance after these hazardous events, and then used these goals to determine
mitigation strategies needed for the WTP. The LOS goals and typically followed the following
format:
• Following a [type] catastrophic event, within _[time]_ of the event, the
WTP will deliver __[minimum viable production OR normal demand]__ with
potable water quality.
Two demands, minimum viable and normal demand, were defined in two workshops. Table ES.3
summarizes these flows.
Table ES.3 Current and Projected Water Demands
Demand Current Future Projection
Minimum Viable 12 mgd 17 mgd
Normal
Winter 6 mgd 10 mgd
Summer 19 mgd 26 mgd
Summer Peak 22 mgd 30 mgd
Page 177 of 229
CITY OF PASCO | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | EXECUTIVE SUMMARY
ES-8 | SEPTEMBER 2022 | FINAL
The LOS goals that were established for the WTP are summarized below:
• Following a major seismic infrastructure catastrophic event (greater than
6.0 magnitude), within one year after the event, the WTP will deliver the minimum
viable production (12 mgd current, up to 17 mgd in the future) with potable water
quality.
• Following a minor seismic infrastructure catastrophic event (less than 6.0 magnitude),
during and immediately following the event, the WTP will deliver the normal demand
with potable water quality.
• Following an operational catastrophic event, during and immediately following the
event, the WTP will deliver normal demand with potable water quality.
• Following a common water quality catastrophic event, for specific identified water
quality challenges, during and immediately after the event, the WTP will deliver the
normal demand with potable water quality.
• Following an uncommon water quality catastrophic event, within seven days, the WTP
will deliver normal demand with potable water quality.
• Standby Power:
- Provide standby power generator capacity to power the full WTP at its design flow.
- Provide a minimum of two days of fuel storage at normal demand.
• Chemical Storage:
- Minimum total chemical storage equivalent to 30 days of operation at average plant
flow and average chemical dose and 14 days of storage at maximum plant flow and
average chemical dose or average plant flow and maximum chemical dose.
- Minimum on-site chemical inventory to operate at average plant flow and average
chemical dose for three days.
ES.3 Water Treatment Plant Process Assessment
In Chapter 3, Carollo assessed the existing WTP’s hydraulic capacity and treatment process
performance to identify opportunities for increasing capacity and improving performance. The
hydraulic and process assessment was based on the following:
• Visual assessment and documentation of major WTP components’ existing condition
during a facility walk-through.
• Discussions regarding treatment performance and capacity with operations staff.
• Comparisons of existing processes against typical design criteria in the industry.
• Reviews of plant-as built drawings and relevant past hydraulic and treatment capacity
studies.
ES.3.1 Hydraulic Evaluation
The results of the hydraulic evaluation are summarized below:
• No significant hydraulic bottlenecks exist in the main treatment process at the
minimum viable demand (17 mgd at buildout) or peak demand (30 mgd).
• Hydraulic bottleneck(s) in the distribution system are likely to limit the WTP finished
water pump station discharge, thus the total plant production capacity.
Page 178 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-9
• The filters appear to have sufficient capacity for solids accumulation at 30 mgd,
however, the WTP sees operational challenges when operating at a high rate. The
solids storage capacity, 5.3 feet of head loss through the filters at 30 mgd, is typical for
the media configuration and operational schedule; however, challenges with filtered
water quality limit the filters’ production capacity.
• The overflow pipes at the sedimentation basin and clear well are too small to
provide 30 mgd overflow capacity. While it is unlikely that overflow would occur at 30
mgd, any significant modifications to this structure should consider options for
accommodating the full overflow.
• Individual filter boxes do not have an overflow, so the filters may overflow if the
backwash valve fails to open, and the waste wash water valve is closed. Adding an
overflow will require extensive structural modifications or installing dedicated overflow
piping.
ES.3.2 Process Evaluation
Carollo compared each treatment processes against typical design criteria to identify process
deficiencies. Additionally, Carollo analyzed each process’ capacity, performance, redundancy
and reliability, and treatment efficacy for common water quality constituents (pathogens, high
turbidity, tastes and odors, metals, high TOC/DBPs, and algal toxins).
The key limitations observed within the major WTP functional groups are summarized below:
• Raw Water Pumping, Metering, and Rapid Mix:
- The firm capacity of the raw water pump station is 21 to 26 mgd with the largest
pump out of service.
- The WTP must be taken offline for maintenance activities in the raw water wet well.
- Static mixers for rapid mix are likely limited to 15 mgd due to increased head loss at
higher flow rates (17 mgd minimum viable production).
- It is not possible to isolate south basin if feeding from the south-serving rapid mix.
• Flocculation and Sedimentation:
- The North basin has only one flocculator motor, which is a single point of failure for
all flocculator paddles in the basin.
- The valve in the channel serving the north basin leaks into the southern basin,
making it difficult to isolate and drain the south basin.
• Filtration and Backwash System:
- To meet filtered water quality requirements, filter production is limited to
4.0 gpm/sf, which, with backwashing, limits total daily filter production to
approximately 19.4 mgd.
• Disinfection/Clearwell:
- Under existing conditions, the WTP is not able to achieve required disinfection
above approximately 15 mgd during the cold months.
- Contact time through the flocculation and sedimentation basins are used to achieve
disinfection. Maintenance on these basins is likely to occur during winter when the
facility needs to produce less water, which will also reduce inactivation ration. This
limits disinfection capacity under this condition to approximately 10 mgd.
- A 2008 tracer study was conducted at a maximum flow of 27 mgd, which serves as
the upper bounds for production capacity, and a new study conducted at 30 mgd is
required to meet maximum production capacity.
Page 179 of 229
CITY OF PASCO | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | EXECUTIVE SUMMARY
ES-10 | SEPTEMBER 2022 | FINAL
• High Service Pumping:
- Flow restrictions in the distribution system, not the high service pump station, limits
pumping capacity.
• Chemical Systems:
- Alum does not currently meet LOS storage goals.
- Under high flow conditions, some chemical system require frequent loading or
operator attention.
- Access for delivery to the chemical facilities is challenging.
- The chlorine gas system does not have a scrubber for use in the event of a chlorine
release. This is a significant safety concern, given the toxicity of chlorine gas.
• Solids handling System:
- The decanting drying beds are limited in how much they can be filled with solids due
to regulatory requirements that allow very limited solids to be discharged to the
river in the supernatant.
- Current beds are at or near their maximum capacity in their current configuration
and operations scheme.
- Two decanting drying beds is the minimum number of beds required for solids
drying operations, so the current solids handing system has limited redundancy. A
third basin is required for full redundancy.
ES.4 Water Treatment Plant Infrastructure Assessment
ES.4.1 Water Treatment Plant Assessment Results
The process evaluation, detailed in Chapter 4, covered all major plant areas. Individual assets
within each major process area were combined into functional groups. Each group was evaluated
in three categories (general condition, capacity and performance, and redundancy) for each
discipline (process/mechanical, electrical, instrumentation, and structural). Table ES.4
summarized each groups’ score.
Page 180 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-11
Table ES.4 Summary of Butterfield WTP Assessment Discipline Scoring
# Functional Group
General Condition Capacity and Performance Redundancy/Resiliency
Structural Process/
Mechanical Instrumentation Electrical Structural Process/
Mechanical Instrumentation Electrical Structural Process/
Mechanical Instrumentation Electrical
1 Columbia River Intake N/A 1 N/A N/A N/A 2 N/A N/A N/A 3 N/A N/A
2 Raw Water Pump Station 2 2 2 3 2 2 2 3 2 2 1 3
3 North Rapid Mix 2 1 2 N/A 2 2 1 N/A 2 2 1 N/A
4 South Rapid Mix 2 1 2 N/A 2 2 1 N/A 2 2 1 N/A
5 North Flocculation and Sedimentation Basin 2 3 2 2 2 1 1 1 2 2 1 3
6 South Flocculation and Sedimentation Basin 2 2 2 2 2 1 1 1 2 1 1 1
7 Filters 1 - 4 2 2 3 N/A 2 3 1 N/A 2 1 1 N/A
8 Filters 5 - 8 2 2 3 N/A 2 3 1 N/A 2 1 1 N/A
9 Filter Backwash System N/A 2 3 1 N/A 2 2 1 N/A 2 2 2
10 Clearwell and High Service Pump Station N/A 2 2 2 N/A 2 1 2 N/A 1 1 2
11 Coagulation Systems 2 2 2 3 1 3 2 3 2 3 2 2
12 pH Adjustment 2 2 2 3 2 2 1 2 2 3 2 2
13 Potassium Permanganate 2 3 2 3 2 3 2 2 2 2 2 2
14 Filter Aid System 2 3 2 3 2 2 2 2 2 2 2 2
15 Chlorine Gas 2 3 1 N/A 2 3 1 N/A 2 3 1 N/A
16 Fluoridation Facilities 1 2 2 2 2 3 1 1 2 2 1 1
17 Calcium Thiosulfate 2 2 2 2 2 2 2 2 2 3 3 2
18 Decant / Drying Bed No. 1 1 1 N/A N/A 1 3 N/A N/A 1 2 N/A N/A
19 Decant / Drying Bed No. 2 1 1 N/A N/A 1 3 N/A N/A 1 2 N/A N/A
20 Backwash Lift Station 1 1 1 1 1 1 1 1 3 3 3 3
21 Plant Air Systems N/A 3 N/A N/A N/A 1 N/A N/A N/A 2 N/A N/A
22 Control and Power - Backbone N/A N/A 1 3 N/A N/A 2 2 N/A N/A 3 3
23 Control and Power - SCADA N/A N/A 1 N/A N/A N/A 2 N/A N/A N/A 2 N/A
24 Treatment Building (General/Structural) 2 N/A N/A N/A 2 N/A N/A N/A 3 N/A N/A N/A
Notes:
Abbreviations: N/A - not addressed or not applicable; SCADA - supervisory control and data acquisition.
Page 181 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-13
ES.4.2 Project Development and Criticality Assessment
Carollo used the results of the condition assessment (Chapter 4) and the treatment process
deficiencies identified in (Chapter 3) to identify project elements for improving the WTP. These
project elements were then combined into project groups.
Carollo prioritized the project groups by comparing the likelihood of existing infrastructure
failing (likelihood of failure) and the resulting consequences of that failure (consequence of
failure). This analysis identified the high-priority projects that Carollo recommends completing
first, since these projects are expected to address critical deficiencies at the WTP. The
importance of these projects influenced WTP expansion phasing discussed in Chapter 5.
In summary, Table ES.5 shows the prioritized project groups. These projects were carried on to
Chapter 6 for further analysis. In Chapter 6, these projects were refined, combined and/or
renamed, and organized into a proposed construction sequence.
Table ES.5 Recommended Projects Based on the Criticality Assessment
High Priority Projects
Major WTP Electrical System Upgrade
Chemical Systems Improvements
Backwash system improvements
Raw Water Pump Station Standby Power
Air Compressor Replacement
Mid Term Rehab Projects
General Structural Repairs
Major WTP Instrumentation System Upgrade
Raw Water PS Reliability Improvements
Valve actuator replacement
Finished Water Pump Station Improvements
Flocculation and Sedimentation Basin Improvements
Residuals Improvements (Phase 1)
Residuals Improvements (Phase 2)
Backwash Lift Station Redundancy Improvements
Passive Underdrain Over-pressurization Protection
Long Term Projects
Seismic and Life Safety Improvements
Painting, Coating, and Corrosion Control
Raw Water and Backwash Lift Station Security Improvements
Monitoring and Evaluation
Minor Instrumentation and Controls Improvements
WTP Building Repairs
Page 182 of 229
CITY OF PASCO | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | EXECUTIVE SUMMARY
ES-14 | SEPTEMBER 2022 | FINAL
In addition to construction projects, Carollo identified several studies the City can commission
for optimizing the existing WTP and to inform the future project development. These studies
identified in Chapter 4 are listed below, but were refined in Chapter 6 where planned facility
replacement made some studies obsolete:
• Electrical study of the raw water pump station.
• Conduct raw water pump station capacity and hydraulics study including computational
fluid dynamics modeling of the pumping wet well and pressure transient modeling of
the raw water pipeline.
• Conduct coagulation study.
• Conduct filter surveillance program. (Removed in Chapter 6.)
• Perform clearwell structural inspection. (Removed in Chapter 6.)
• Conduct clearwell tracer study at 30 mgd. (Removed in Chapter 6.)
• Conduct distribution system study to determine hydraulic bottleneck / high service
pump high pressure issues, including a pressure transient study and evaluation of
existing surge tank.
• Conduct residuals dewatering optimization study.
• Survey and permitting study of existing backwash lift station facility.
• Conduct code compliance and arc flash study on all WTP electrical panels and electrical
distribution / service areas. (Removed in Chapter 6.)
• Conduct controls and instrumentation system study. (Removed in Chapter 6.)
• Conduct structural anchorage / seismic study.
• Conduct Operations and Maintenance (O&M) Manual update.
• Climate Resiliency Study (algal toxins and intake milfoil).
Additionally, a Facility Plan update is recommended by 2033 if population growth, plant
demand, and/or project implementation varies significantly from what is presented in this plan.
ES.5 Alternatives Identification and Evaluation
After analyzing the existing WTP’s hydraulic capacity and treatment performance (Chapter 3)
and conducting the high-level infrastructure assessment (Chapter 4), Carollo investigated several
options for WTP improvements.
ES.5.1 Drivers for WTP Improvements and Considerations
First, Carollo and the City identified the following drivers for WTP facility improvements:
• Capacity:
- Provide treatment capacity of 30 mgd and address existing capacity bottlenecks.
• Aging infrastructure:
- Replace infrastructure and equipment that will reach the end of its useful life; much
of the original plant construction is projected to reach the end of its useful life
around 2034.
• Water quality challenges:
- Address water quality challenges including pathogens, high turbidity, TOC/DBP
formation, metals, taste and odors, and algal toxins.
• Safety:
- Provide a safe work environment for City staff.
Page 183 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-15
Carollo then reviewed all areas of the plant to identify which areas warranted further evaluation
of improvement options.
Based on this analysis, Carollo concluded that replacing the following four treatment processes
would have the most significant impacts on the overall direction for the future WTP:
• Pretreatment.
• Pre-oxidation and primary disinfection.
• Taste and odors, metals, and algal toxins.
• Residual disinfection.
ES.5.2 Screening of Treatment Technologies and Alternatives Analysis
The City completed screening of technologies and selected two technologies for detailed
analysis for each process.
Carollo combined the treatment technologies the City selected into unique treatment trains
designed to meet the LOS goals. Carollo used the treatment trains to do the following:
• Evaluate overall treatment effectiveness for meeting water quality challenges.
• Develop a site layout, including developing a long-term construction phasing plan for
replacing new facilities.
• Compare capital and O&M costs.
• Compare non-economic factors including environmental, societal,
functional/operational, and future uncertainty/flexibility.
Ultimately, the City selected Treatment Train 2, direct filtration with ultraviolet (UV) disinfection
and pre-ozone, as the recommended alternative for the following reasons:
• Direct filtration reduces overall chemical usage and reduces solids production.
• The drawbacks of constructing sedimentation basins, i.e., higher capital costs, larger
footprint, and increased operational complexity, outweighed the benefits, treating
higher-turbidity water, since the raw water has very low turbidity.
• Other treatment trains, specifically Trains 3 and 4, required a large clear well, increased
chemical usage (relative to UV disinfection), and increased potential for DBP formation.
Figure ES.3 shows the planning level site layout for the recommended treatment train after all
facilities have been constructed and delineates areas where additional treatment units, such as
flocculation basins and filters, can be constructed to increase water production.
Page 184 of 229
TT2 - Full Page
CLACKAMAS RIVER WATER
WATER TREATMENT PLANT
FACILITY PLAN
scale: 1" = 300'
PHASING
THE CITY OF PASCO
BUTTERFIELD WATER TREATMENT
PLANT
FACILITY PLAN
OZONE GENERATION
BUILDING
OXYGEN STORAGE
KEY
PHASE 1
PHASE 2
PHASE 3
PHASE 4
PHASE 5
PHASE 6
FUTURE FLOCCULATION
CAPACITY EXPANSION
PLANNING-LEVEL BUILDOUT OF THE BUTTERFIELD WTP
FUTURE FILTER
CAPACITY EXPANSION
UV PUMP STATION
FILTERS
OZONE CONTACTOR
OZONATED WATER
FLOCCULATION
BASINS
ELECTRICAL
BUILDING
DIESEL GENERATOR
BRINE
TANK
CHEMICAL BUILDING
WITH ONSITE HYPOCHLORITE GENERATION
ADMINISTRATION
BUILDING
FUTURE
PUMP
STATION
FUTURE FLOCCULATION
CAPACITY EXPANSION
FUTURE UV
SPACE FOR
ADDITIONAL
FILTERS NTREATMENT TRAIN 2: DIRECT FILTRATION WITH UV DISINFECTION AND PRE OZONE
SCALE: 1" = 50'
NOTES:
1. THESE PHASES REPRESENT A POTENTIAL CONSTRUCTION SEQUENCE FOR CONSTRUCTING IMPROVEMENTS AT THE BUTTERFIELD WTP THAT ULTIMATELY REPLACE ALL EXISTING WTP INFRASTRUCTURE.
2. PIPELINES SHOWN ON THIS FIGURE ARE FOR CONCEPTUAL PURPOSES ONLY. THEY PROIVDE A GENERAL OVERVIEW INTERTIES AND ROUTING AND ARE NOT INTEDNED TO BE USED AS DESIGN RECOMMENDATIONS.
3. FILTER FOOTPRINT IS SHOWN AT THE RECOMMENDED FILTRATION RATE OF 8 GPM/SF, HOWEVER, 'SPACE FOR ADDITIONAL FILTERS' IS PROVIDED IF A LOWER FILTRATION RATE IS SELECTED DURING DETAILED DESGIN.
Figure ES.3 Planning-Level Buildout of the Butterfield WTPPage 185 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-19
ES.6 Capital Improvement Plan Summary
After selecting a treatment train in Chapter 5, the project list developed in Chapter 4 based on
the criticality assessment was refined by eliminating rehabilitation projects for facilities that will
be replaced, combining projects where appropriate, and sequencing projects in terms of
construction phasing and implementation.
Table ES.7 shows the refined list of Capital Improvement Plan (CIP) projects.
Projects were classified and phased as short-term (year 2023 to 2026), mid-term (2027 to 2031),
and long-term (2032 to 2042). Short-term projects were phased so that capital expenditures
remain below the City’s approved rate study for Butterfield WTP expenditures ($5 million
annually), while mid- and long-term projects targeted $10 million annually. Table ES.6
summarizes the anticipated CIP costs for the next 20 years. All costs presented in Table ES.6 are
in May 2021 dollars.
Table ES.6 Capital Improvement Plan Summary
Parameter
Short-Term,
2023 to 2026
(4 years)(1)
Mid-Term,
2027 to 2031
(5 years) (1)
Long Term,
2032 to 2042
(11 years) (1)
Total CIP Cost
(2021 Dollars)(1)
Target
Maximum
Annual CIP
Expenditure
$5,000,000(2)(3) $10,000,000(2)(4) $10,000,000(2)(4) N/A
Average Annual
Expenditure $4,909,000 $9,730,000 $5,661,000 $6,528,000
Total Cost $19,636,000 $48,651,000 $62,273,000 $130,560,000
Notes:
(1)Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time
of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable.
(2)Maximum annual CIP expenditures must be adjusted for inflation for future rate studies.
(3)Annual expenditure per the City’s approved rate study.
(4)Assumed annual expenditure rate-funded expenditure.
(5)For this plan, effort was made to sequence and phase projects to align annual expenditures with the City’s rate studies
and overall funding availability. Should alternative funding opportunities become available, some projects may be able to
be advanced earlier than the timing shown.
The total WTP CIP cost over the next 20 years is approximately $131 million in May 2021 dollars.
This is, on average, approximately $6.5 million per year over the planning period; however, these
costs vary on a year-to-year basis depending on the target maximum annual CIP expenditure.
Planning and executing long-term projects may move up on the schedule, or be reprioritized,
depending on funding availability and options in the future.
The complete breakdown of project costs and timing over the 20-year planning horizon is
provided in Tables ES.8 and ES.9.
Page 186 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-21
Table ES.7 Refined List of CIP Projects
Project
Number Project Name Project Description Estimated Capital Cost
(2021 Dollars)(1)
1 Electrical Building
• Upgrade the electrical power feed to the WTP, construct a completely new electrical building, and add a standby power generator and storage.
New electrical building will include replacement of all major existing electrical system components including transformers, main distribution
panels, and MCCs. New electrical building to be designed and sized to accommodate loads from current equipment and future electrical loads,
including on-site hypochlorite generation, UV disinfection, and ozone generation.
$11,295,000
2 Miscellaneous Improvements and
Air Compressor Replacement
• Near-term improvement projects to address aging equipment, resiliency/redundancy, and life safety of existing WTP, including:
− Backwash System Improvements:
Replace backwash flow control valve actuator to decrease risk of valve failing in an undesirable position and install second backwash flow
control valve (in parallel or in series) to add redundancy to critical backwash system.
• Air Compressor Replacement:
− Replacement of all three aging air compressors (two pneumatic valve compressors and one basin-air bubbler / deicer compressor).
• Seismic and Life Safety Improvements:
− Lateral and longitudinal bracing on gallery piping. Additional required seismic and life safety improvements may come out of the recommended
structural anchorage / seismic study.
− Complete recommended structural anchorage / seismic study prior to completing these improvements.
• Raw Water PS Reliability Improvements:
− General repairs to the existing pump station, including replacement of leaking check valve on raw water pump 9.
$371,000
3 Raw Water Pump Station Improvements
• Improvements to the raw water pump station capacity and electrical system. Electrical improvements include replacement of aging electrical
equipment, two new VFDs, and installation of a standby power generator and associated electrical equipment to power the raw water pump
station and backwash lift pump station. Capacity improvements include replacement of the two smaller raw water pumps (pumps 1 and 3) with
new 10 mgd pumps and new VFDs to provide 30 mgd firm capacity. Other improvements include installation of pressure indicators/transmitters on
each raw water pump discharge, installation of a redundant level indicator/transmitter on the raw water wet well, and installation of security
fencing and cameras around the raw water pump station and backwash lift station to reduce vandalism.
• Complete electrical study of the raw water pump station prior to this project or during preliminary design for this project.
• Complete raw water pump station capacity and hydraulics study prior to this project (including computational fluid dynamics modeling of the
pumping wet well and pressure transient modeling of the raw water pump station).
$6,022,000
4 Flocculation and Sedimentation Basin
Improvements
• Complete projects to address aging flocculation/mixing system and address identified issues in the flocculation and sedimentation basins. Replace
aging and failing paddle flocculation system in north flocculation basins. Complete additional improvements and repairs identified for the
flocculation and sedimentation basins.
$1,279,000
5 Chemical Building
• Construct a completely new chemical facility providing space and equipment for all existing WTP chemicals (alum, fluoride, caustic soda,
potassium permanganate, and filter aid polymer). Chemical building to include facilities and equipment to replace existing chlorine gas system with
new onsite sodium hypochlorite generation system. Chemical building will include space for ozone quench chemical needed at the time of ozone
installation.
$16,317,000
6 Filters • Construct new filter complex with eight new deep bed granular media filters. $17,780,000
7 UV Disinfection • Construct two new UV reactors housed in a dedicated building. UV disinfection must be in service prior to conversion to direct filtration. $8,368,000
8 Flocculation Basins • Construct two new flocculation basins, including a new flash mix system, flow control equipment, and conveyance channels.
• Conduct coagulation study as part of flocculation basin design. $10,211,000
Page 187 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-23
Project
Number Project Name • Project Description Estimated Capital Cost
(2021 Dollars)(1)
9 Residuals Improvements (Phase 1) • Design and installation of a new residuals polymer feed system and upgrades to the existing decant drying bed outlet structures.
• Conduct residuals dewatering optimization study prior to project. $1,196,000
10 Finished Water Pump Station
• Construct a new finished water pump station with new vertical turbine pumps and clear well sized to provide sufficient operational storage for WTP
uses and virus inactivation with chlorine after conversion to direct filtration with UV disinfection.
• Complete distribution study to determine hydraulic bottlenecks / high service pump pressure issues prior to this project.
$17,262,000
11 Ozone Treatment System • Construct new ozone treatment system, including ozone generation, injection, and concrete ozone contactor. $22,461,000
12 Residuals Improvements • Construct a new (third) decant / drying bed. $2,503,000
13 Administration Building • Construct new administration building with an additional space dedicated for maintenance area. $12,364,000
14 Backwash Lift Station Redundancy
Improvements
• Rebuild the existing backwash lift station to accommodate a second (redundant) pump.
• Complete recommended study - survey and permitting study of existing backwash lift station facility - prior to this project. $2,967,000
15 WTP Repairs
• WTP repair projects that may be included as allowances/adders to other CIP project or be completed by WTP staff, including:
− General Structural Repairs:
Miscellaneous structural repairs around the WTP to repair spalling concrete, cracking, and other areas of structural concern.
• Painting, Coating, and Corrosion Control:
− General repair of existing coated surfaces, including non-destructive testing of corroded items, cleaning and re-painting of corroded pipelines.
• WTP Building Repairs:
− General repair of the existing administration and chemical areas, including repair to the loading dock ceiling and plaster repairs on the
treatment building exterior.
$164,000
Notes:
Abbreviations: MCC - motor control center; VFD - variable frequency drive.
(1) Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable.
Page 188 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-25
Table ES.8 Capital Improvement Plan Summary
Project
Total
CIP Cost
Estimate
(2021 Dollars)
(1)
CIP Phasing(2)
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
1 Electrical
Building $11,295,000 $1,129,000 $5,083,000 $5,083,000 - - - - - - - - - - - - -
2
Misc.
Improvements
and Compressor
Replacement
$371,000 $371,000 - - - - - - - - - - - - - - -
3
Raw Water
Pump Station
Improvements
$6,022,000 - - - - $2,409,000 $3,613,000 - - - - - - - - - -
4
Flocculation and
Sedimentation
Basin
Improvements
$1,279,000 $1,279,000 - - - - - - - - - - - - - - -
5 Chemical
Building $16,317,000 $1,632,000 - - $4,895,000 $7,343,000 $2,447,000 - - - - - - - - - -
6 Filters $17,780,000 - - - - - $1,778,000 $7,112,000 $7,112,000 $1,778,000 - - - - - - -
7 UV Disinfection $8,368,000 - - - - - $837,000 $3,347,000 $3,347,000 $837,000 - - - - - - -
8 Flocculation
Basins $10,211,000 - - - - - - - - $2,043,000 $4,084,000 $4,084,000 - - - - -
9
Residuals
Improvements
(Phase 1)
$1,196,000 - - - - $239,000 $957,000 - - - - - - - - -
10 Finished Water
Pump Station $17,262,000 - - - - - - - - $3,452,000 $6,905,000 $6,905,000 - - - - -
11 Ozone (including
generation) $22,461,000 - - - - - - - - - - - $4,493,000 $8,984,000 $8,984,000 - -
12
Residuals
Improvements
(Phase 2)
$2,503,000 - - - - - - - - - - - $751,000 $1,752,000 - - -
13 Admin Building $12,364,000 - - - - - - - - - - - - - $1,236,000 $5,564,000 $5,564,000
14
Backwash Lift
Station
Redundancy
Improvements
$2,967,000 - - - - - - - - - - - - - - $1,187,000 $1,780,000
15 WTP Repairs $164,000 $164,000 - - - - - - - - - - - - - - -
CIP Total (2021 Dollars) (1) $130,560,000 $4,575,000 $5,083,000 $5,083,000 $4,895,000 $9,991,000 $9,632,000 $10,459,000 $10,459,000 $8,110,000 $10,989,000 $10,989,000 $5,244,000 $10,736,000 $10,220,000 $6,751,000 $7,344,000
Notes:
(1) Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable.
(2) For this plan, effort was made to sequence and phase projects to align annual expenditures with the City’s rate studies and overall funding availability. Should alternative funding opportunities become available, some projects may be able to be advanced earlier than the timing shown.
Page 189 of 229
EXECUTIVE SUMMARY | BUTTERFIELD WATER TREATMENT PLANT FACILITIES PLAN | CITY OF PASCO
FINAL | SEPTEMBER 2022 | ES-27
Table ES.9 Capital Improvement Plan Summary Continued
Project
CIP Phasing Summary Project Driver
Short-Term
(2023-2026) (1)(2)
Mid-Term
(2027-2031) (1)(2)
Long-Term
(2032-2042) (1)(2) Capacity Aging Infrastructure Water Quality Safety
1 Electrical Building $11,295,000 - - 80% 20% 0% 0%
2 Misc. Improvements and Compressor Replacement $371,000 - - 50% 50% 0% 0%
3 Raw Water Pump Station Improvements - $6,022,000 - 50% 50% 0% 0%
4 Flocculation and Sedimentation Basin Improvements $1,279,000 - - 0% 100% 0% 0%
5 Chemical Building $6,527,000 $9,790,000 - 25% 25% 25% 25%
6 Filters - $17,780,000 - 50% 50% 0% 0%
7 UV Disinfection - $8,368,000 - 100% 0% 0% 0%
8 Flocculation Basins - $2,043,000 $8,168,000 0% 50% 50% 0%
9 Residuals Improvements (Phase 1) - $1,196,000 - 100% 0% 0% 0%
10 Finished Water Pump Station - $3,452,000 $13,810,000 50% 50% 0% 0%
11 Ozone (including generation) - - $22,461,000 0% 0% 100% 0%
12 Residuals Improvements (Phase 2) - - $2,503,000 100% 0% 0% 0%
13 Admin Building - - $12,364,000 0% 100% 0% 0%
14 Backwash Lift Station Redundancy Improvements - - $2,967,000 50% 50% 0% 0%
15 WTP Repairs $164,000 - - 0% 100% 0% 0%
CIP Total (2021 Dollars) (1) $19,636,000 $48,651,000 $62,273,000 $47,383,000 $47,452,000 $31,646,000 $4,079,000
Annual Cost (2021 Dollars) (1) $4,909,000 $9,730,000 $5,661,000 $2,369,000 $2,373,000 $1,582,000 $204,000
Notes:
(1) Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable.
(2) For this plan, effort was made to sequence and phase projects to align annual expenditures with the City’s rate studies and overall funding availability. Should alternative funding opportunities become available, some projects may be able to be advanced earlier than the timing shown.
Page 190 of 229
October 10, 2022
City Council
MeetingBUTTERFIELD WTP
FACILITY PLANPage 191 of 229
Structured Facility Planning Process
2
Define the performance requirements
for the Butterfield WTP
Assess existing infrastructure &
performance
Determine what improvements are needed
Develop capital improvements planPage 192 of 229
Following a catastrophic event, _____ of the event, the
WTP will deliver _____ demand with water quality.
Establish Level of
Service (LOS) Goals
Following AInfrastructure
(major seismic)Catastrophic EventWithin one year (state guideline)*Of the Event the WTP will DeliverMinimum
viable
Production, with Potablewater qualityInfrastructure
(minor seismic)
During and immediately
following*Normal
Operational During and immediately following Normal
Common water quality During and immediately following Normal
Uncommon water quality Within 7 days Normal
Performance Requirements were defined to
identify how we expect the WTP to work
*Existing facility not anticipated to provide this level of service.
Replaced/retrofitted infrastructure will be designed to meet this level of service. Page 193 of 229
4
See Table 4.4 of the Facility Plan for names/descriptions
of projects corresponding to the numbers.
Best value found in balance of maximizing
existing with building new
Page 194 of 229
Solution –Phased Replacement
5Page 195 of 229
20-Year Capital Improvement Plan
6
•Accommodate
improvements
at current rates
•Phases
improvements
while avoiding
stranding assets
•Prioritizes
highest
risk/biggest
impact projects
earlier
Notes:
(1)Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time of t he writing of this plan, a 4 percent annual escalation rate was deemed reasonable.
(2)For this plan, effort was made to sequence and phase projects to align annual expenditures with the City’s rate studies and o verall funding availability. Should alternative funding opportunities become available,
some projects may be able to be advanced earlier than the timing shown. Page 196 of 229
Near Term Improvements
7
New Chemical and
Electrical Building
Reconfigured WTP
access and parking
Misc. repair to key
WTP processes
Project
Total
CIP Cost
Estimate
(2021 Dollars)
Year
2023 2024 2025 2026
1 Electrical Building $11,295,000 $1,129,000 $5,083,000 $5,083,000 -
2 Misc. Improvements and
Compressor Replacement $371,000 $371,000 ---
4
Flocculation and
Sedimentation Basin
Improvements
$1,279,000 $1,279,000 ---
5 Chemical Building $16,317,000 $1,632,000 --$4,895,000Page 197 of 229
Ultimate Treatment Process –Long Term
8
Ozone
Pretreatment
Administration &
Operations Flocculation
Filtration
Disinfection and
Distribution Pumping
Space for future
expansion
Page 198 of 229
Questions?
•Staff recommends approval
of a resolution adopting the
Butterfield Water Treatment
Plant Facility Plan
Thank you to City of Pasco staff:
-Heath Bateman
-Joe West
-Jon Padvorac
-Maria Serra
Page 199 of 229
AGENDA REPORT
FOR: City Council October 5, 2022
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Angela Pashon, Senior Management
Analyst
Executive
SUBJECT: Tri-Cities Animal Control and Sheltering Services Update
I. REFERENCE(S):
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Estimated cost of City-led ACA operations - approximately $2m (split evenly
among three cities)
IV. HISTORY AND FACTS BRIEF:
The Tri-Cities Animal Control Authority (TCACA) has been jointly operated by
the cities of Kennewick, Pasco and Richland for many years through an interlocal
agreement Historically, ACA (ILA). day-to-have been operations day
accomplished through a contractor. On November 11, 2021, the ACA invited
Benton Franklin Human Society (BFHS) assume day-to-day operational control
of the Tri-Cities Animal Shelter including all operations for regional animal
control, shelter operations, and personnel management. This action was due to
an urgent and emergency action initiated due to law enforcement action against
the previous contractor, which prompted their immediate and unplanned
dismissal.
BFHS completed its term of the emergency agreement on July 15, 2022. A
Request for Proposals (RFP) was issued on June 23, 2022 seeking proposals
for an external contractor to provide animal control and s heltering services for
the TCACA with a deadline of July 28, 2022; subsequently the RFP deadline
was extended until August 5, 2022. Without a third party agency to provide
Page 200 of 229
services to the animals housed in the TCACA Shelter, the City of Pasco staff
took over the day-to-day operations of the facility and animal control on
Saturday, July 16, 2022.
During the interim, City staff established needed policies, procedures and
standards for the animal control and shelter services, faced and overcame many
challenges of overcrowded animal conditions, a parvo outbreak, and recruited
and onboarded an entire staff. City staff also provided needed upgrades to the
shelter's equipment (computers, phones, internet, etc.), improved functionality of
the aging and antiquated facility, and sanitized the entire facility until it can be
retired when the new facility is completed.
V. DISCUSSION:
A contracted management structure has proven challenging for the member
cities, volunteers and supporters of the shelter, and to the c ontractors
themselves.
Contractors are necessarily focused on starting and maintaining a business
requiring extensive efforts to fundraise for staffing; navigating employee benefits
and payroll; purchasing and implementing records management and financi al
software; and providing general facility and fleet maintenance. All in addition to
providing animal control services and routine and emergency animal care.
Statutory requirements such as record keeping under the Washington State
Public Records Act has proven challenging through multiple contractors.
Since assuming day-to-day operational control of the TCACA, assigned shelter
management found the following deficiencies and concerns:
1. Lack of policies and standard operating procedures (SOPs), had to rely
heavily on temporary staff from prior contractors.
2. No established veterinary partnership for prescribing, dosing, or ordering
of medications and vaccinations.
3. Lack of controls including; intermingling of stray animals with general
population; constant movement of animals throughout the facility and on
property; animals being taken offsite without being accounted for; and
customers taking animals out of kennels or roaming facility unescorted.
4. Overcrowded facility of primarily unaltered animals.
5. Backlog of animals in "foster-to-adopt" program requiring spay/neuter
surgery; medical care (including emergencies) were responsibility of
shelter.
6. The shelter was severely overcrowded with approximately 350 animals in
a facility designed for a peak of 200 animals.
7. Upper respiratory infections were rampant among the cat population.
8. Facility and fleet decrepit from years of unresolved or poor repairs.
Page 201 of 229
Most if not all of these deficiencies to one degree or another have plagued
TCACA operations to one degree of another for years over multiple contractors
Since assuming full control of the facility this past July, staff has taken the
following steps to address the aforementioned deficiencies and make other
improvements
1. Onboarded critical shelter staff.
2. Developed SOPs for cleaning/sanitizing of facility an d animal kennels;
intake of animals; medical protocols; and foster program.
3. Formed relationship with external vet to assist with creation of SOPs for
animal care, medication, and vaccinations.
4. Partnered with ASPCA's Northern Tier Shelter Initiative and Mikey's
Chance Rescue to manage parvo outbreak.
5. Determined and staying within the shelter's Capacity for Care (C4C).
6. Facility operating back at reasonable capacity levels.
The result has been increased levels of efficiency and cleanliness; animals are
moving through the shelter quicker, adoptions are up significantly, as they
receive the appropriate medical care and vaccinations upon arrival (320
adoptions as of 10/6/22); backlog of animals waiting for spay/neuter surgery
nearly completed (270 animals altered as of 10/7/22); facility utilization improved
including having stray dog kennels being operational to keep separate from
general population; rescue partnerships continue to improve (133 animals
transferred to rescues as of 10/6/22); and improved technology including transfer
to RingCentral system (as of 10/6/22 over 1,640 calls received since since switch
9/19/22) and installation of security cameras around and throughout the facility.
While there is more work to do at the TCACA, it has become clear that these
services are better provided by a governmental agency. Pasco, Kennewick, and
Richland leadership have discussed a City managed operation and agree the
contractor structure is not a viable option at this time. Incorporation of the
operations as a City managed operation will provide animal control and
sheltering and established processes capacity services the organization’s
including:
• Care and health of the animals
• Enforcement of animal control regulations
• Records management and responses
• Human Resources and benefits management
• Financial system and auditing
• Facility maintenance
• Fleet maintenance
• Technology and equipment
Page 202 of 229
• Safety and training
• Outreach and communications
Staff’s preliminary annual budget for a City managed operation is $2 million, split
evenly among the three Cities. If Council agrees with this course of action, staff
will include the (20) FTEs in the 2023-2024 Biennial Budget, all shelter staff are
currently temporary. Staff recommends the hiring of an Animal Services
Manager immediately who will assume full management responsibility of the
shelter and direct animal control operations. Hiring this position now will provide
the incumbent an opportunity to analyze the current operations and identify
adjustments before the end of the year. If agreed, staff will advertise for the
Animal Services Manager immediately and notify RFP respondents of decision.
Page 203 of 229
AGENDA REPORT
FOR: City Council October 5, 2022
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Bob Gear, Fire Chief
Fire Department
SUBJECT: Ordinance & Resolution - Budget Amendment & Approval of Behavioral
Health Personal Services Agreement with Awareness Consulting &
Training, LLC
I. REFERENCE(S):
Draft Ordinance - Budget Amendment
Draft Resolution
Proposed Personal Services Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Mental/Behavioral Health Personal Services Agreement with Awareness
Consulting & Training, LLC for $625,000 ($25K - 2022; $150K each - 2023-
2026) to be funded from American Rescue Plan Act (ARPA) project list.
IV. HISTORY AND FACTS BRIEF:
Council was previously briefed at their June 27, 2022 Workshop, regarding the
potential implementation of additional supervision and capability for the Pasco
Resource Navigator (PRN) program. The purpose of the additional scope to the
PRN Program is to provide a behavioral health clinician and access to nurse
practitioner and peer counselor resources via a professional services contract.
V. DISCUSSION:
City staff continues to actively participate in regional planning efforts to provide
for the enhancement and expansion of regional mental health services, however
with the relatively recent decisions by the Commissioners from Benton and
Franklin Counties to enact a 0.1% sales tax, the discussion of program elements
Page 204 of 229
and implementation is still in the very early stages. Staff arranged a presentation
by the Benton Franklin Recovery Coalition to provide Council an update on
current regional efforts in August 2022.
As regional conversations continue, time is of the essence to replace the expired
Mobile Outreach Professionals (MOP) program, which provided behavioral
health professionals who rode in tandem with the Pasco Police Department. With
recent legislative changes impacting how law enforcement can respond, and the
success of the Pasco Resource Navigator (PRN) Program, Staff is proposing the
enhancement of the PRN program until a regional response program can be
established. Once the response teams are established, the enhanced PRN
program would be the responsible for follow up and assistance with patients
based on referrals from the crisis response team.
The expansion of the PRN program would include adding a behavior al health
clinician, psychiatric nurse practitioner, and peer counselor through contracted
services. These positions would:
• provide supervision to the PRN program ensuring improved coordination
of Navigators with crisis services, therapeutic courts, and diversion
programs;
• coordinate existing and new behavioral health and medical services in our
region;
• realign positions for the program to better support the community's needs;
and
• allow for a well-rounded team to provide proactive, boots on the ground
approach to community stabilization without further impacting first
responders.
Support of regional mental health services has remained on the pending projects
list. If approved by Council, $150K of American Rescue Plan Act (ARPA) funds
would be allocated annually to support the enhanced PRN Program, allowing
referrals from the crisis response team to the PRN Program to provide follow-up
case assistance and management. The funding of this program meets the
criteria for addressing mental health issues related to COVID19 pandemic, as
many of the behavioral issues encountered were exacerbated by the lack of
available resources. In the event a regional team is not in place by the time
ARPA funds must be used, a total allocation for this program is $625K ($25K -
2022; $150K - 2023-2026).
Page 205 of 229
Ordinance – 2021 – 2022 Operating Budget Amendment – ARPA Funding- 1
ORDINANCE NO. ____
AN ORDINANCE AMENDING THE 2021-2022 BIENNIAL
BUDGET (ORDINANCE NO. 4560) OF THE CITY OF PASCO,
WASHINGTON, BY PROVIDING SUPPLEMENT THERETO; TO
PROVIDE ADDITIONAL APPROPRIATION IN THE CITY’S
AMBULANCE FUND FOR MENTAL/BEHAVIORAL HEALTH
PERSONAL SERVICES AGREEMENT
WHEREAS, on December 7, 2020, the Pasco City Council approved Ordinance No. 4503,
adopting the 2021-2022 Biennial Budget; and
WHEREAS, on November 22, 2021, the Pasco City Council approved Ordinance No.
4560, adopting the 2021-2022 Biennial Budget Amendment; and
WHEREAS, the 2021-2022 Amended Biennial Budget included the Pasco Resource
Navigator (PRN) program; and
WHEREAS, the availability of regional mental health services is lacking and demand is
high, and
WHEREAS, Council has authorized $625,000 in American Rescue Plan Act funds to be
utilized for eligible projects; and
WHEREAS, the need for mental health service and support following the myriad of
challenging impacts of the COVID-19 pandemic, including but not limited to loss of loved ones
and economic hardship related to job loss or business closure,
WHEREAS, the City is pursuing an increase of funding to provide greater capacity to
meet mental health needs,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. Pursuant to RCW 35A.34.200(1)(d), the 2021-2022 Biennial Budget be and
the same is hereby amended to provide for the following adjustments to revenues, accounting for
an excess in revenue generated from use of American Rescue Plan Act grant funds of $25,000
and modifying proportionately the expenditures in the Ambulance Fund accounting for this
increase in revenue to be appropriated as a funding source for the WPWTP Expansion Phase 2, as
follows:
Fund EXPENDITURE REVENUE
Ambulance Fund $25,000.00 $25,000.00
Total $25,000.00 $25,000.00
Page 206 of 229
Ordinance – 2021 – 2022 Operating Budget Amendment – ARPA Funding- 2
Section 2. That the additions in appropriations and expenditures are hereby declared to
exist in the above funds for the said uses and purposes as shown above, and the proper City
officials are hereby authorized and directed to issue warrants and transfer funds in accordance
with the provision of the Ordinance.
Section 3. Except as amended herein, Ordinance No. 4560 as previously adopted
heretofore shall remain unchanged.
Section 4. This Ordinance, being an exercise of a power specifically delegated to the City
legislative body, is not subject to referendum, and shall take full force and effect five (5) days after
approval, passage, and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington this ___ day of October,
2022.
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: ___________________________
Page 207 of 229
Resolution – Behavioral Health PSA - 1
RESOLUTION NO. ______
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO EXECUTE A PERSONAL
SERVICES AGREEMENT WITH AWARENESS CONSULTING &
TRAINING, LLC FOR A BEHAVIORAL HEALTH CLINICIAN.
WHEREAS, the City of Pasco, Washington desires to increase the capability and
supervision of the Pasco Resource Navigator Program; and
WHEREAS, the Awareness Consulting & Training, LLC can provide the appropriate
skilled supervision with a behavioral health clinician; and
WHEREAS, on June 27, 2022, the Pasco Fire Department requested that the behavioral
health clinician be funded with the American Rescue Plan Act (ARPA) funding, up to $625,000,
during Council’s workshop meeting.
WHEREAS, the City Council of the City of Pasco, Washington, has after due
consideration, determined that it is in the best interest of the City of Pasco to enter into
the personal services agreement with Awareness Consulting & Training, LLC.
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 personal services agreement between the City of Pasco and Awareness Consulting &
Training, LLC as attached hereto and incorporated herein 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 Agreement on behalf of the City of Pasco; and
to make minor substantive changes as necessary to execute the Agreement.
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 Attorneys
Page 208 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 1 of 9
PERSONAL SERVICES AGREEMENT
BEHAVIORAL HEALTH SERVICES
THIS AGREEMENT is made and entered into between the City of Pasco, a Washington
Municipal Corporation, hereinafter referred to as “City”, and Awareness Consulting and Training
LLC, hereinafter referred to as “Consultant,” on the _______ day of _________________, 2022.
RECITALS
WHEREAS, Consultant has the capability and capacity to provide an Outreach
Coordinator and Psychiatric Advanced Registered Nurse Practitioner to the existing Pasco
Resource Navigator Team detailed in the Statement of Work attached hereto as Exhibit A; and
the City desires to have certain services and/or tasks performed as set forth below requiring
specialized skills, training, equipment, and other supportive capabilities; and
WHEREAS, City desires to retain Consultant to provide the said services, and Consultant
is willing to perform such services under the terms and conditions hereinafter set forth; the
Consultant represents that it is qualified and possesses sufficient skills, experience, equipment, and
necessary capabilities, including: technical and professional expertise, when required, to perform
the services and/or tasks as set forth in this Agreement upon which the City is relying.
NOW, THEREFORE, in consideration of the mutual covenants, and performances
contained herein, the parties agree as follows:
1. Scope of Services. The Consultant shall perform such services and accomplish such tasks,
including the furnishing of all labor, materials, facilities and equipment necessary for full
performance thereof, as identified and designated as Consultant’s Responsibilities
throughout this Agreement, and as more particularly described in Scope of Work detailed
in Exhibit A, attached hereto and incorporated herein (the “Project”).
2. Term. This Project shall begin on the execution date listed above and shall continue
thereafter until the completion of Services under all Statements of Work for a period of 5
years unless sooner terminated pursuant to Section 13.
3. Compensation and Payment.
3.1 Payment for services provided hereunder shall be made following the performance
of such services. Such payment shall be full compensation for work performed or
services rendered, and for all labor, materials, supplies, equipment, and incidentals
necessary to complete the Project.
3.2 No payment shall be made for any services rendered by the Consultant except for
services identified and set forth in this Agreement except as may be authorized by
a written supplemental agreement approved by the City.
Page 209 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 2 of 9
3.3 The City shall pay the Consultant for work performed under this Agreement upon
timely submitted invoices detailing work performed and expenses for which
reimbursement is sought. The City shall approve all invoices before payment is
issued. Payment shall occur within thirty (30) days of receipt and approval of an
invoice.
3.4 The City shall pay the Consultant for all work performed and expenses incurred
under this Agreement, as follows.
☒ Such rates as identified on Exhibit A.
4. Reports and Inspections.
4.1 The Consultant at such times and in such forms as the City may require, shall
furnish to the City such statements, records, studies, surveys, reports, data, and
information as the City may request pertaining to matters covered by this
Agreement.
4.2 The Consultant shall, at any time during normal business hours and as often as the
City or the Washington State Auditor may reasonably deem necessary, make
available for examination all of its records and data with respect to all matters
covered, directly or indirectly, by this Agreement and shall permit the City, or its
designated authorized representative to audit and inspect other data relating to all
matters covered by this Agreement. The City shall receive a copy of all audit
reports made by the agency or firm as to the Consultant’s activities. The City may,
at its discretion, conduct an audit at its expense, using its own or outside auditors,
of the Consultant’s activities which relate, directly or indirectly, to this Agreement.
Consultant shall be provided a copy of such reports.
4.3 The Consultant, during the term of this Agreement, shall obtain all permits and
registration documents necessary for the performance of its work and for the
execution of services at its own expense, and shall maintain its validity. Upon
request, the Consultant shall deliver to the City copies of these licenses, registration
documents, and permits or proof of their issuance or renewal.
4.4 Consultant shall maintain books, records and documents, which sufficiently and
properly reflect all direct and indirect costs related to the performance of this
Agreement, and shall maintain such accounting procedures and practices as may be
necessary to assure proper accounting of all funds paid pursuant to this Agreement.
These records shall be subject, at all reasonable times, to inspection, review, or
audit as provided above.
4.5 The Consultant shall retain all books, records, documents or other material relevant
to this Agreement for three (3) years after its expiration. Consultant agrees that the
City, or its designee, shall have full access and right to examine any of said
materials at all reasonable times during this period.
Page 210 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 3 of 9
5. Ownership and Use of Documents.
5.1 All research, tests, surveys, preliminary data, information, drawings and documents
made, collected, or prepared by the Consultant for performing the services subject
to this Agreement, as well as any final product, collectively referred to as “work
product,” shall be deemed as the exclusive property of the City, including copyright
as secured thereon. Consultant may not use them except in connection with the
performance of the services under this Agreement or with the prior written consent
of the City. Any prior copyrighted materials owned by the Consultant and utilized
in the performance of the services under this Agreement, or embedded in with the
materials, products and services provided thereunder, shall remain the property of
the Consultant subject to a license granted to the City for their continued use of the
products and services provided under this Agreement. Any work product used by
the Consultant in the performance of these services which it deems as
“confidential,” “proprietary,” or a “trade secret” shall be conspicuously designated
as such.
5.2 In the event of Consultant’s default, or in the event that this Agreement is
terminated prior to its completion, the work product of the Consultant, along with
a summary of the services performed to date of default or termination, shall become
the property of the City, and tender of the work product and summary shall be a
prerequisite to final payment under this Agreement. The summary of services
provided shall be prepared at no additional cost, if the Agreement is terminated
through default by the Consultant. If the Agreement is terminated through
convenience by the City, the City agrees to pay Consultant for the preparation of
the summary of services provided.
6. Public Records.
6.1 Consultant acknowledges that the City is an agency subject to Chapter 42.56 RCW
“Public Records Act.” All preliminary drafts or notes prepared or gathered by the
Consultant, and recommendations of the Consultant are exempt prior to the
acceptance by the City or public citation by the City in connection with City action.
6.2 If the Consultant becomes a custodian of public records of the City and request for
such records is received by the City, the Consultant shall respond to the request by
the City for such records within five (5) business days by either providing the
records, or by identifying in writing the additional time necessary to provide the
records with a description of the reasons why additional time is needed. Such
additional time shall not exceed twenty (20) business days unless extraordinary
good cause is shown.
6.3 In the event the City receives a public records request for protected work product
of the Consultant within its possession, the City shall, prior to the release of any
protected work product or as a result of a public records request or subpoena,
Page 211 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 4 of 9
provide Consultant at least ten (10) business days prior written notice of the pending
release and to reasonably cooperate with any legal action which may be initiated
by the Consultant to enjoin or otherwise prevent such release.
7. Independent Contractor Relationship.
7.1 The parties intend that an independent contractor relationship is created by this
Agreement. The City is interested primarily in the results to be achieved; subject
to the scope of services and the specific requirements of this Agreement, the
implementation of services will lie solely with the discretion of the Consultant. No
agent, employee, officer or representative of the Consultant shall be deem ed to be
an employee, agent, officer, or representative of the City for any purpose, and the
employees of the Consultant are not entitled to any of the benefits or privileges the
City provides for its employees. The Consultant will be solely and entirely
responsible for its acts and for the acts of its agents, employees, officers,
subcontractors or representatives during the performance of this Agreement.
7.2 In the performance of the services provided in this Agreement, Consultant is an
independent contractor with full authority to control and direct the performance of
the details of the work, however, the results of the work contemplated herein must
meet the approval of the City and shall be subject to the City’s general rights of
inspection and review to secure the satisfactory completion thereof.
7.3 The Consultant shall comply with all State and Federal laws including, but not
limited to:
7.3.1 The definition requirements of RCW 50.04.140 (Employment Security).
7.3.2 RCW 51.08.195 (Industrial Insurance).
7.3.3 Obtain a City of Pasco business license.
7.4 The City may, at its sole discretion, require the Consultant to remove any employee,
agent or servant from employment on this Project who, in the City’s sole discretion,
may be detrimental to the City’s interest.
8. Indemnification.
8.1 The Consultant shall defend, indemnify, and hold harmless the City, its officers,
officials, employees, and volunteers harmless from any and all claims, injuries,
damages, losses or suits including attorney fees, arising out of or resulting from the
acts, errors or omissions of the Consultant in performance of this Agreement,
except for injuries and damages caused by the sole negligence of the City.
8.2 However, should a court of competent jurisdiction determine that this Agreement
is subject to RCW 4.24.115, then, in the event of liability for damages arising out
Page 212 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 5 of 9
of bodily injury to persons or damages to property caused by or resulting from the
concurrent negligence of the Consultant, and the City, its officers, officials,
employees, and volunteers, the Consultant’s liability, including the duty and cost
to defend, hereunder shall be only to the extent of the Consultant’s negligence. It is
further specifically and expressly understood that the indemnification provided
herein constitutes the Consultant’s waiver of immunity under Industrial Insurance,
Title 51 RCW, solely for purposes of this indemnification. This waiver has been
mutually negotiated by the parties. The provisions of this section shall survive the
expiration or termination of this Agreement.
8.3 No liability shall attach to the City by reason of entering into this Agreement except
as expressly provided herein.
8.4 This indemnification shall include damages, penalties and attorney fees sustained
as a result of Consultant’s delayed or failed performance of Section 6 above.
9. Insurance. The Consultant shall procure and maintain for the duration of the Agreement,
insurance against claims for injuries to persons or damage to property which may arise
from or in connection with the performance of the work hereunder by the Consultant, its
agents, representatives, employees, or subcontractors. The Consultant’s maintenance of
insurance as required by the Agreement shall not be construed to limit the liability of the
Consultant to the coverage provided by such insurance, or otherwise limit the C ity’s
recourse to any remedy available at law or in equity.
9.1 Minimum Scope of Insurance. Consultant shall obtain insurance of the types and
coverage described below:
9.1.1 Automobile Liability insurance covering all owned, non-owned, hired and
leased vehicles. Coverage shall be at least as broad as Insurance Services
Office (ISO) form CA 00 01.
9.1.2 Commercial General Liability insurance shall be at least as broad as ISO
occurrence form CG 00 01 and shall cover liability arising from premises,
operations, stop-gap independent contractors and personal injury and
advertising injury. The City shall be named as an additional insured under
the Consultant’s Commercial General Liability insurance policy with
respect to the work performed for the City using an additional insured
endorsement at least as broad as ISO endorsement form CG 20 26.
9.1.3 Workers’ Compensation coverage as required by the Industrial Insurance
laws of the State of Washington.
9.1.4 Professional Liability insurance appropriate to the Consultant’s profession.
9.2 Minimum Amounts of Insurance. Consultant shall maintain the following
insurance limits:
Page 213 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 6 of 9
9.2.1 Automobile Liability insurance with a minimum combined single limit for
bodily injury and property damage of one million US dollars (1,000,000.00)
per accident.
9.2.2 Commercial General Liability insurance shall be written with limits no less
than:
☒ two million US dollars (2,000,000.00) each occurrence;
☒ two million US dollars (2,000,000.00) general aggregate; and
☐ two million US dollars (2,000,000.00) products completed
operations aggregate limit
9.2.3 Professional Liability insurance shall be written with limits no less than:
☒ two million US dollars (2,000,000.00) per claim; and
☒ two million US dollars (2,000,000.00) policy aggregate limit;
9.3 Other Insurance Provision. The Consultant’s Automobile Liability, Professional
Liability, and Commercial General Liability insurance policies are to contain, or be
endorsed to contain that they shall be primary insurance as respect the City. Any
insurance, self-insurance, or self-insured pool coverage maintained by the City
shall be excess of the Consultant’s insurance and shall not contribute with it.
9.3.1 The Consultant’s insurance shall be endorsed to state that coverage shall not
be cancelled by either party, except after thirty (30) days prior written notice
by certified mail, return receipt requested, has been given to the City.
9.4 Acceptability of Insurers. Insurance is to be placed with insurers with a current
A.M. Best rating of not less than A: VII.
9.5 Verification of Coverage. Consultant shall furnish the City with original
certificates and a copy of the amendatory endorsements, including, but not
necessarily limited to, the additional insured endorsement, evidencing the insurance
requirements of the Agreement before commencement of the work.
9.6 Notice of Cancellation. The Consultant shall provide the City with written notice
of any policy cancellation within two (2) business days of their receipt of such
notice.
9.7 City Full Availability of Consultant Limits. If the Consultant maintains higher
insurance limits than the minimums shown above, the City shall be insured for the
full available limits of Commercial General and Excess or Umbrella liability
maintained by the Consultant, irrespective of whether such limits maintained by the
Consultant are greater than those required by this Agreement or whether any
Page 214 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 7 of 9
certificate of insurance furnished to the City evidences limits of liability lower than
those maintained by the Consultant.
9.8 Failure to Maintain Insurance. Failure on the part of the Consultant to maintain the
insurance as required shall constitute a material breach of contract, upon which the
City may, after giving five (5) business days notice to the Consultant to correct the
breach, immediately terminate the Agreement or, at its discretion, procure or renew
such insurance and pay any and all premiums in connection therewith, with any
sums so expended to be repaid to the City on demand, or at the sole discretion of
the City, offset against funds due the Consultant from the City.
10. Nondiscrimination. In the performance of this Agreement, the Consultant will not
discriminate against any employee or applicant for employment on the grounds of race,
creed, color, national origin, sex, marital status, age or the presence of any sensory, mental
or physical handicap; provided that the prohibition against discrimination in employment
because of handicap shall not apply if the particular disability prevents the proper
performance of the particular worker involved. The Consultant shall ensure that applicants
are employed, and that employees are treated during employment in the performance of
this Agreement without discrimination because of their race, creed, color, national origin,
sex, marital status, age or the presence of any sensory, mental or physical handicap.
Consultant shall take such action with respect to this Agreement as may be required to
ensure full compliance with local, State and Federal laws prohibiting discrimination in
employment.
11. Covenant Against Contingent Fees. The Consultant warrants that it has not employed
nor retained any company, firm, or person, other than a bona fide employee working
exclusively for the Consultant, to solicit or secure this Agreement; and that it has not paid
or agreed to pay any company, person or firm, other than a bona fide employee working
exclusively for the Consultant, any fee, commission, percentage, brokerage fee, gift, or
other consideration contingent upon or resulting from the award or making of this
Agreement. For breach or violation of this warranty, the City shall be relieved of its duties
and obligations under this agreement which shall terminate immediately upon notice to the
Consultant.
12. Assignment and Subcontracting.
12.1 The City has awarded this Agreement to the Consultant due to its unique
qualifications to perform these services. The Consultant shall not assign (or
subcontract other than as specifically identified in Exhibit A its performance under
this Agreement or any portions of this Agreement without the prior written consent
of the City, which consent must be sought at least thirty (30) days prior to the date
of any proposed assignment.
12.2 Any work or services assigned or subcontracted hereunder shall be subject to each
provision of this Agreement including Section 6, Public Records; Section 10,
Page 215 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 8 of 9
Nondiscrimination; proper bidding procedures where applicable; and all local, State
and Federal statutes, ordinances and guidelines.
12.3 Any technical or professional service subcontract not listed in this Agreement, must
have prior written approval by the City.
13. Termination.
13.1 Termination for Convenience. Either party may terminate this Agreement for any
reason upon giving the other party no less than ten (10) business days written notice
in advance of the effective date of such termination.
13.2 Termination for Cause. If the Consultant fails to perform in the manner called for
in this Agreement, or if the Consultant fails to comply with any other provisions of
this Agreement and fails to correct such noncompliance within five (5) business
days of written notice thereof, the City may terminate this Agreement for cause.
Termination shall be effected by serving a notice of termination on the Consultant
setting forth the manner in which the Consultant is in default. The Consultant will
only be paid for services and expenses complying with the terms of this Agreement,
incurred prior to termination.
13.3 Immediate Termination. If the Consultant breach relates to violation of the
prohibition against contingent fees this agreement shall terminate immediately at
the City’s sole discretion and upon receipt of notice by consultant. Receipt of notice
includes email, facsimile or letter to the address noted below in 14.3.2.
14. General Provisions.
14.1 For the purpose of this Agreement, time is of the essence.
14.2 Notice. Notice provided for in this Agreement shall be sent by:
14.2.1 Personal service upon the Project Administrators; or
14.2.2 Certified mail to the physical address of the parties, or by electronic
transmission to the e-mail addresses designated for the parties below.
14.3 The Project Administrator for the purpose of this Agreement shall be:
14.3.1 For the City: P.O. Box 293, Pasco, WA 99301
Attention: Robert Gear, Fire Chief
14.3.2 For the Consultant: 1610 W 52nd Ave, Kennewick, WA 99337
Attention: Cameron Fordmeir, Member
Page 216 of 229
Personal Services Agreement – Awareness Consulting and Training, LLC - Pasco Resource Navigator Program
Page 9 of 9
15. Dispute Resolution.
15.1 This Agreement has been and shall be construed as having been made and entered
into and delivered within the State of Washington and it is agreed by each party
hereto that this Agreement shall be governed by the laws of the State of
Washington.
15.2 In the event of a dispute regarding the enforcement, breach, default, or
interpretation of this Agreement, the Project Administrators, or their designees,
shall first meet in a good faith effort to resolve such dispute. In the event the dispute
cannot be resolved by agreement of the parties, said dispute shall be resolved by
arbitration pursuant to RCW 7.04A, as amended, with both parties waiving the right
of a jury trial upon trial de novo, with venue placed in Pasco, Franklin County,
Washington. The substantially prevailing party shall be entitled to its reasonable
attorney fees and costs as additional award and judgment against the other.
16. Nonwaiver. Waiver by the City of any provision of this Agreement or any time limitation
provided for in this Agreement shall not constitute a waiver of any other similar event or
other provision of this Agreement.
17. Integration. This Agreement between the parties consists in its entirety of this document
and any exhibits, schedules or attachments. Any modification of this Agreement or change
order affecting this Agreement shall be in writing and signed by both parties.
18. Authorization. By signature below, each party warrants that they are authorized and
empowered to execute this Agreement binding the City and the Consultant respectively.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
date first written above.
CITY OF PASCO, WASHINGTON CONSULTANT
Dave Zabell, City Manager Cameron Fordmeir, Member of Awareness
Consulting and Training LLC
ATTEST:
Debra C. Barham, City Clerk
APPROVED AS TO FORM:
Kerr Ferguson Law, PLLC, City Attorney
Page 217 of 229
Exhibit A
Project Description-Statement of Work
Pasco Fire Department and Awareness Consulting & Training LLC
Overview:
The partners above have committed to adding a Outreach Coordinator and Psychiatric Advanced
Nurse Practitioner to the existing Pasco Resource Navigator (PRN) Program. The PRN program
has identified risk factors that may result in overutilization of emergency departments and first
responder services. The addition of a behavioral health clinician and psychiatric nurse
practitioner (ARNP) can provide clinical oversight of the existing PRN staff and coordinate
services with existing crisis services, therapeutic courts, diversion programs, case management,
and co-responder models. The psychiatric nurse practitioner will be available for medication
consultation, case review, and emergency prescription of non-addictive psychiatric medication as
needed. A PRN program consisting of peer support, a behavioral health clinician, and a
medication management provider allows for a well-rounded team that provides proactive, boots
on the ground approach to community stabilization without further burdening first responders
and emergency departments.
Background:
While many communities address this issue through the development of a Community
Paramedic Program, our approach to this work arose from leveraging the already existing strong
partnerships and current efforts underway by many stakeholders in our community to address
this shared concern. The over consumption of resources, in most cases, are due to underlying
Social Determinants of Health (SDOH) and the expanded use of Community Health Workers is a
more cost-effective and efficient option in the setting of strong clinical oversight and close
partnership with emergency personnel.
Type of Contract:
Fixed contract of $150,000.00 per year, paid monthly by invoice. This contract can be
automatically renewed for up to 5 years if mutually agreed upon by the Pasco Fire Department
and Awareness Consulting & Training LLC
Place of work:
All work will be performed within the City of Pasco and surrounding areas of Franklin County at
the location determined and agreed upon by all parties. Office location will be within the desired
Pasco Fire Station of choice. To support the necessary collaboration between the PRN team and
the City of Pasco Fire Department staff, it is expected that the primary place of work will be the
Fire Station assigned. While there may be times that the PRN team must attend specific
meetings, trainings, or special events on request of the contractor, the PRN team should report to
their primary work site at the start of every workday, unless the PFD leadership has been
informed ahead of time and agrees.
Page 218 of 229
2
It is understood that most of the workday may be spent in the field, but the assigned workstation
should be returned to at the end of the day, unless otherwise reported to leadership.
Participants/Targeted Risk Factors:
The PRN program will target those individuals who are high utilizers of first responder and
emergency department services with emphasis placed on Social Determinants of Health (SDOH)
and the local Community Health Improvement Plan (CHIP). The PRN program will aid with
basic needs, unsafe living environments, personal safety, access to medication/healthcare, poor
health literacy, barriers to treatment, and coordination of existing or new behavioral health and
medical services. Any future program iterations may expand to include participants with other
needs or built to support other intended outcomes. Participation in the program is short term and
intended to connect individuals to existing resources in the community.
Referrals:
All referrals will be reviewed and agreed upon by the behavioral health clinician, ARNP, and
Pasco Fire Department. Determination of services will be based on the individuals use of
responder services, emergency department visits, community safety, impact on city resources,
and unique needs of the individual. Referrals will be made from Fire/EMS, emergency
departments, primary care physicians, community agencies, and crisis providers when
appropriate.
Safety and Equipment:
PRN staff will be equipped with a radio and cell phone provided by Pasco Fire Department and
follow all existing safety protocols. The peer and behavioral health clinician will respond in-
tandem to ensure community and staff safety when applicable. Calls to dispatch will be made
before and after contact when engaging with individuals in the community and living settings.
PRN staff attire will consist of a Pasco Fire Uniform and badge that clearly identifies staff as a
representative of the City of Pasco. A Pasco Fire Department vehicle will be provided to PRN
staff for use during work hours only. Other equipment provided at the office location of choice
will consist of a computer or laptop to document referrals, calls, contacts, follow-up, and
dispositions.
Any reasonable requests by citizens to modify their residence for any reason must be
documented and submitted to leadership for approval.
The PRN staff must use the provided equipment to protect themselves from any risk of infection
or injury. Staff must report any concerns immediately to both Pasco Fire Department and
contractor supervisors. It is not the intent to provide personal care to any participant.
Clinical Oversight and Communication:
The behavioral health clinician will provide day to day clinical oversight of the Peer positions
and work closely to review cases, current treatment plan, and ensure warm hand-offs to
Page 219 of 229
3
appropriate services are made to prevent referrals from falling through the cracks. Clinical
oversight and supervision of the behavioral health clinician will be performed by the contractor
and ARNP in partnership with Pasco Fire Department. PRN staff will meet weekly with Pasco
Fire Department to go over referrals and review current courses of action. Monthly and/or
quarterly meetings will be held with City of Pasco Fire Department Leadership, contractor
leadership, and PRN team to continually evaluate and evolve the program to meet the unique
needs of the city and population served.
Documentation:
Documentation will consist of standard demographics, relevant behavioral health/medical
history, risk factors, protective factors, current presentation, disposition, and outside referrals
made. Date and length of service will be included on all contacts along with monthly reports that
detail number of participants, new referrals, current presentation/program involvement, and those
graduating/completing current treatment goals.
SPECIFIC MANDATORY TASKS AND ASSOCIATED DELIVERABLES
Task 1: Assess all participants that have been referred into the program using a
standardized assessment tool that:
• Collects standard demographic information (name, address, gender, date of
birth)
• Identifies risks and populates a problem list that includes the primary medical
issues, contributing risk factors and SDOH concerns.
Deliverable 1: Monthly report that reflects required demographic information for all new and
current referrals per above requirements.
Deliverable 2: Monthly report that outlines the number of new referrals that were received in the
previous month, and of those, the percentage and number of cases that were started/engaged, the
percentage and number pending and the percentage and number that refused services or were
unable to be reached, including any documented reasons or details available.
Deliverable 3: Monthly report that includes the characteristics of all participants currently in the
program by primary medical issue (if present), and risk factors/SDOH. For example, the report
should reflect the number of individuals with food insecurity, homelessness, significant SUD,
and other key risk factors.
Deliverable 4: Complete and upload into the records management system(s) (RMS) all required
consents for program participation as required by both the contractor and PFD.
Task 2: Documentation of an Action Plan that addresses the identified problems and includes
the anticipated length of service in the program.
Page 220 of 229
4
Deliverable 1: Monthly report that includes all active participants in the program, along with
their start date and expected completion date. This should include length on program for all
current participants.
Deliverable 2: If requested, provide a participant’s Action Plan that clearly defines the goals
associated with the individual’s participation in the program.
Task 3: Implementation of an Action Plan that documents the application of all interventions,
along with the time required to deliver the interventions.
Deliverable 1: Monthly aggregated report that reflects all interventions applied to program
participants, by category. For example, the total number of housing associated interventions,
food bank trips, care coordination for medical appointments or other related interventions.
Deliverable 2: Monthly report that reflects the total number of hours spent per month and the
average per day on the application of interventions for program participants.
Deliverable 3: Monthly report that reflects the number of home visits made the previous month.
Deliverable 4: Monthly report that reflects the total amount of resources (monetary, food boxes,
bus passes) distributed to program participants. If outside grant funds are utilized, the associated
expenditures and details should be recorded and reported according to any Grant requirements.
Task 4: Collaboration with Agency staff: Outreach and develop relationships with Pasco Fire
Department staff and leadership.
Deliverable 1: Establish a consistent schedule for visiting all fire stations within the City of
Pasco at least monthly and provide an update to leadership at the end of every month, recapping
visits.
Deliverable 2: Attend and participate in morning briefings with City of Pasco Fire Department
staff and leadership.
Deliverable 3: Identify, report and partner with City of Pasco Fire Department leadership in
addressing community issues that impact program participants.
Deliverable 4: Take ownership of and participate in weekly cross agency meetings to review
participant census.
Deliverable 5: Participate in monthly PFD Staff Meetings to provide highlights of activities and
referral status for the current month of the Staff Meeting.
Task 5: Other Documentation
Utilize the City of Pasco RMS for documentation and collection of information.
Deliverable 1: Complete required trainings for all agency sponsored IT systems.
Deliverable 2: Complete any required documentation timely.
Schedule for Deliverables:
Page 221 of 229
5
All deliverables should be received by the 10th of every month.
Changes to Statement of Work:
Any changes to this SOW will be authorized and approved only through written correspondence
or email communication between PFD and the contractor.
Page 222 of 229
AGENDA REPORT
FOR: City Council October 5, 2022
TO: Dave Zabell, City Manager City Council Workshop
Meeting: 10/11/22
FROM: Debra Barham, City Clerk
Administrative & Community Services
SUBJECT: Resolution - Appointment Process for City Boards & Commissions
I. REFERENCE(S):
Proposed Resolution
Resolution No. 3388 (approved 4.16.2012)
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
Mayoral appointments to the City of Pasco Boards & Commissions have been
managed in accordance with Resolution No. 3388, since it was last amended on
April 16, 2012.
The process for soliciting and reviewing applications, interviewing candidates
and appointing/reappointing members to the City's Boards and Commissions
(B/C) included the full City Council interviewing the selected candidates during
a Council Workshop following the Screening Committee (consisting of the Mayor
and two Councilmembers appointed by the Mayor) narrowing down the applicant
pool.
The full Council interview process was interrupted in 2020 when the COVID-19
pandemic prohibited "in-person" public meetings and gatherings from occurring
for over two (2) years. Recently, the Washington State Governor Inslee
remanded his emergency orders pertaining to public meetings and as a result
Page 223 of 229
the prohibition on in-person meetings has been removed with the option of virtual
attendance.
During the pandemic, the City Boards & Commissions position appointment and
reappointment process continued virtually by means of the Council forming
Council Boards & Commissions Subcommittees (Council B/C Subcommittee),
consisting of the Mayor and two appointed Councilmembers, to first review the
applications packets for the specific B/C and then to schedule virtual interviews
with the selected candidates. After the interviews concluded, the Council B/C
Subcommittee would deliberate and the Mayor would make the selection or
selections for appointment or reappointmen t at a subsequent Council meeting,
the Council would then consider confirmation of the appointment or
reappointment by a majority vote.
V. DISCUSSION:
During the October 3rd Council meeting, under the Miscellaneous Discussion,
Council discussed the board and commission process and directed that staff
bring back a revised resolution for their consideration updating the City's Boards
& Commissions appointment process based on the October 3rd discussion.
Council to review review the proposed resolution memorializing the City's Boards
& Commissions Appointment Process as it is currently functioning with potential
action at the October 17, 2022, Council meeting.
Page 224 of 229
DRAFT 10.5.2022
Resolution – BC Interview & Appointment Process - 1
RESOLUTION NO. _________
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON
AMENDING THE PROCESS FOR APPOINTMENTS TO CITY BOARDS AND
COMMISSIONS.
WHEREAS, the City of Pasco maintains several citizen boards and commissions to assist
the delivery of municipal services, as well as to advise the City Council in making policy decisions;
and
WHEREAS, the appointment process prescribed throughout the Pasco Municipal Code
requires the Mayor to appoint qualified individuals to vacancies on such boards or commissions,
subject to confirmation of the City Council; and
WHEREAS, the last amendment to the City’s Boards and Commissions appointment
process was passed by Council on April 16, 2012, through Resolution No. 3388; and
WHEREAS, the solicitation process and management of the City’s Boards and
Commissions members was transferred from the City Manager’s Office to the City Clerk’s Office
in January 2020.
WHEREAS, during the onset of the COVID-19 pandemic in early 2020, the process for
reviewing application packets and interviewing candidates was modified to accommodate meeting
restrictions, which also allowed for the use of new technology providing for the conduct of
interviews virtually; and
WHEREAS, the Mayor and City Council desire to continue reviewing City Boards and
Commissions application packets and interviewing candidates through a Council subcommittee
consisting of two Councilmembers and the Mayor, which has been effective and efficient for both
the City Council and applicants alike.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO, WASHINGTON:
Section 1: Applications for vacancies on City Boards and Commissions shall be solicited
by the City Clerk’s Office on behalf of the City Council prior to when a position’s term expires or
when a vacancy occurs due to a resignation or removal of a member.
Section 2: Application packets, of those candidates meeting the qualifications for the
Board or Commission position(s), shall be reviewed by a Council subcommittee appointed by the
Mayor, which shall include the Mayor and two Councilmembers. The Council subcommittee shall
be ad-hoc and appointed when applications are received for a current vacancy or vacancies or for
upcoming position term expirations. The Council subcommittee shall select those candidates it
deems best suited for the respective Board/Commission but not more than three candidates for
Page 225 of 229
DRAFT 10.5.2022
Resolution – BC Interview & Appointment Process - 2
each vacancy to be filled. The Council subcommittee shall consider the following factors in
making their selections for further consideration:
a) Geographic representation
b) Gender representation
c) Ethnic representation
d) Familial and financial relationships of board members
Section 3: The Council subcommittee shall conduct the interviews of the selected
candidates and may recommend reappointment of an incumbent applicant without interview if the
incumbent has served not more than two consecutive terms since the last interview. At a City
Council meeting following such interviews, an interviewed candidate shall be selected by the
Mayor for appointment/reappointment to each vacant position. Any candidate selected by the
Mayor shall be subject to confirmation vote by the City Council; a majority vote of the quorum
present at such meeting shall be required to confirm the Mayor’s appointments.
Section 4: Any prior resolutions of the City Council in conflict with the provisions in this
resolution shall be superseded by this resolution.
Section 5: This Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco, Washington this___ day of _________,
_____.
_____________________________
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorney
Page 226 of 229
RESOLUTION NO. `
A RESOLUTION Providing a Process for Appointments to City Boards and
Commissions.
WHEREAS, the City of Pasco maintains several citizen advisory boards to assist the delivery of
municipal services as well as to advise the City Council in making various policy decisions; and
WHEREAS, the appointment process prescribed by the Pasco Municipal Code requires the Mayor
to appoint citizens to vacancies on such boards, subject to confirmation of the City Council; and
WHEREAS, the Mayor and City Council desire to establish an appointment process which is more
collaborative yet efficient for both the applicants and City Council alike;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVES AS
FOLLOWS:
Section 1: Applications for city boards and commissions shall be solicited annually by the City
Manager on behalf of the City Council.
Section 2: All applications received by the City Manager shall be reviewed by a City Council
committee appointed by the Mayor; such committee, to be known as the "Appointment Screening
Committee," shall be ad-hoc, appointed annually, and consist of three members, including the Mayor. The
Appointment Screening Committee shall select those applicants it deems best suited for the respective
board/commission but not more than three applicants for each vacancy to be filled. The Appointment
Screening Committee shall consider the following factors in making their selections for further
consideration:
a) Geographic representation;
b) Gender representation;
c) Ethnic representation;
d) Familial and financial relationships of board members
Section 3: Those applicants selected by the Appointment Screening Committee shall be
interviewed by the City Council during a public meeting; provided, however, the Screening Committee may
recommend reappointment of an incumbent applicant without interview by the City Council if the incumbent
has •-- • - - -•served not more than two consecutive•
terms since the last interview. At a City Council meeting following such interview, an interviewed candidate
shall be selected by the Mayor for appointment to each vacancy. Any candidate selected by the Mayor shall
be subject to confirmation vote of the City Council; a majority vote of the quorum present at such meeting
shall be required to confirm the Mayor's appointments.
Section 4: Any prior resolutions of the City Council in conflict with the provisions of this
resolution shall be superseded by this resolution.
PAS D by the City Council ity of Pasco at its regular meeting this
16th day of April, 2012.
Matt Watkins, Mayor
T T: f APP'S AS TO FORM:
Debra Clark,City Clerk Leland B. Kerr, City Attorney
Page 227 of 229
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 228 of 229
CALIDAD DE VIDA
Promover una calidad de vida alta a través de programas de calidad, servicios, inversiones y reinversiones
apropiadas en la infraestructura de la comunidad incluyendo, pero no limitado a:
• Terminar el Plan de Transportación para promover más cohesión entre nuestras vecindades actuales y re-desarrolladas
a través de elementos de diseño, p.ej. conectividad, transitabilidad, sostenibilidad estética, y espacios para reuniones
comunitarias.
• Terminar el Plan de los Parques, la Recreación, y los Espacios Vacíos y el desarrollo de una estrategia de
implementación para mejorar tales servicios justamente a lo largo de la comunidad.
• Terminar el Plan de Acción e Implementación de Viviendas con un enfoque en una variedad de viviendas para tratar las
necesidades del aumento en la población.
SOSTENIBIILIDAD FINANCIERA
Mejorar la viabilidad a largo plazo, el valor, y los niveles de los servicios y los programas, incluyendo, pero no
limitado a:
• Adoptar las políticas y los estándares de inversión estratégica para asegurar consistencia en la planificación a largo
plazo para incluir la actualización de las tarifas de impacto, las tarifas en áreas de infraestructura específica, y las
medidas de mitigación SEPA relacionadas con el nuevo desarrollo, p.ej. escuelas, tráfico, parques, e incendios.
RED DE TRANSPORTACION COMUNITARIA
Promover un sistema de transportación multimodal en alta operación incluyendo, pero no limitado a:
• Aplicar el Plan de Transportación que fue adoptado, incluyendo el desarrollo de las políticas, las reglas, los programas,
y los proyectos que proporcionan más conectividad, inversión estratégica, movilidad, sistemas multimodales,
accesibilidad, eficiencia, y seguridad.
SEGURIDAD COMUNITARIA
Promover métodos proactivos para la inversión estratégica en la infraestructura, el personal, y el equipo
incluyendo, pero no limitado a:
• Adoptar y desarrollar estrategias de implementación para el Plan Comprehensivo para Incendios. Con el propósito de
mantener la clasificación comunitaria actual en la tercera Clase del Departamento de Clasificación del Estado de
Washington.
• Colaborar con socios regionales para influenciar estrategias que reduzcan los incidentes de personas sin hogar al
hacer uso de los recursos actuales como el impuesto de ventas de 0.1% implementado recientemente para la salud
mental, el uso de programas para navegar los recursos, y otros esfuerzos.
• Desarrollar una estrategia de implementación para el Plan Comprehensivo de la Policía para apoyar los niveles futuros
de servicio del departamento para asegurar la sostenibilidad, la seguridad pública, la seguridad de los policías, el
control de crímenes, y el cumplimiento con los mandatos legislativos.
VITALIDAD ECONOMICA
Promover y fomentar vitalidad económica incluyendo, pero no limitado a:
• Implementar el Plan Comprehensivo del Uso de Terreno a través de acciones relacionadas, incluyendo cambios de los
códigos de zonificación, actualización en las etapas de los códigos de las señales, y el desarrollo de las reglas y los
estándares.
• Terminar los Planes de las Áreas y un análisis ambiental el cual complementa al plan integral de uso de la tierra como a
los Planes del Centro y de Broadmoor.
• Desarrollar un Plan de Desarrollo Económico, el cual incluya esfuerzos de revitalización.
IDENTIDAD COMUNITARIA
Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen incluyendo, pero no
limitado a:
• Desarrollar un Plan de Participación de la Comunidad para evaluar las estrategias, las tecnologías, y otras
oportunidades para promover la inclusividad, la participación de la comunidad, y los esfuerzos interdepartamentales y de
coordinación de los constituyentes.
• Apoyar a la Comisión de las Artes y Cultura al promover la unidad y la celebración de la diversidad a través de
programas de arte y cultura, reconocer eventos o acontecimientos significantes, y participar/patrocinar eventos dentro
de la comunidad.
Page 229 of 229