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HomeMy WebLinkAbout2023.07.17 Council Meeting Packet AGENDA City Council Regular Meeting 7:00 PM - Monday, July 17, 2023 Pasco City Hall, Council Chambers & GoToWebinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would like to provide public comment remotely, may continue to do so by filling out the online form via the City’s website (www.pasco-wa.gov/publiccomment) to obtain access information to comment. Requests to comment in meetings must be received by 4:00 p.m. on the day of this meeting. To listen to the meeting via phone, call (415) 655-0060 and use access code 307-404-066. City Council meetings are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco- wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. CONSENT AGENDA - All items listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by roll call vote as one motion (in the form listed below). There will be no separate discussion of these items. If further discussion is desired by Councilmembers, the item may be removed from the Consent Agenda to the Regular Agenda and considered separately. 6 - 18 (a) Approval of Meeting Minutes for June 20th, 26th, and July 10th To approve the minutes of the Pasco City Council Regular Meeting held on June 20th and Regular Workshops held on June 26th and July 10, 2023. Page 1 of 273 19 - 21 (b) Bills and Communications - Approving Claims in the Total Amount of $14,174,080.38 and Bad Debt Write-off Totaling $ 99,385.25. To approve claims in the total amount of $14,174,080.38 ($9,264,836.67 in Check Nos. 256753 - 257388); ($45,473.35 in Check Nos. 54400 - 54463); ($2,483,413.54 in Electronic Transfer Nos.841118 - 841179, 841188 - 841268, 841270 - 841479, 841529 - 841539, 841546 - 841548, 841550 - 841553, 841555 - 841619, 841621 - 841622, 841689 - 841692, 841727 - 841730, 841747 - 841762, 841766, 841773 - 841785); ($2,380,207.69 In Electronic Transfer Nos. 30192007 - 30193317); and ($149.13 in Electronic Transfer No 922). To approve bad debt write-off for accounts receivable including Utility Billing, Ambulance, Cemetery, General Accounts, and Mi scellaneous Accounts in the total amount of $99,385.25 and, of that amount, authorize $99,385.25 to be turned over for collection. 22 - 28 (c) Resolution No. 4358 - Purchase of Citywide Genetec Enterprise Access Control System To approve Resolution No. 4358, waiving the competitive bidding requirements and approving the purchase of Genetec Door Access and Video Security Monitoring System from Interwest Technology Systems Inc.. 29 - 38 (d) Resolution No. 4359 – Project Acceptance for Broadmoor Tax Increment Funding (TIF,) Phase 1A (Rough Grading) Project To approve Resolution No. 4359, accepting work performed by Goodman & Mehlenbacher Enterprises (GAME), Inc., under contract for the Broadmoor TIF, Phase 1A (Rough Grading) Project. (RC) MOTION: I move to approve the Consent Agenda as read. 5. PUBLIC COMMENTS - The public may address Council on any items unless it relates to a scheduled Public Hearing. This item is provided to allow the opportunity to bring items to the attention of the City Council or to express an opinion on an issue. Its purpose is not to provide a venue for debate or for the posing of questions with the expectation of an immediate response. Some questions require consideration by Council over time and after a deliberative process with input from a number of different sources; some questions are best directed to staff members who have access to specific information. Citizen comments will normally be limited to three minutes each by the Mayor. Those with lengthy messages are invited to summarize their comments and/or submit written information for consideration by the Council outside of formal meetings. 6. REPORTS FROM COMMITTEES AND/OR OFFICERS Page 2 of 273 (a) Verbal Reports from Councilmembers 39 - 50 (b) General Fund Monthly Report - May 2023 7. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO 51 - 103 (a) Q - Empire Estates Latecomer: Contested Area/Assessment Motion Options: MOTION A: (For the Empire Brothers latecomer agreement) I move to approve the corrected reimbursement area and proportionate share calculation recommended by City Staff. -or- MOTION B: I move to approve the alternate assessment area and/or alternate proportionate share calculation as determined by Council. 8. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS 104 - 194 (a) Resolution Nos. 4361 & 4362 -Approval of Temporary and Term Aquatic Lands' Agreements with the Department of Natural Resources for the Waste Water Treatment Plant Outfall Pipe within the Columbia River MOTION: I move to approve Resolution No. 4361, authorizing the City Manager to execute the temporary Aquatic Lands Right of Entry No. 23-104550 and Aquatic Lands Easement No. 51-104551 easement and temporary right of entry agreements with the State of Washington Department of Natural Resources to facilitate the construction of the new wastewater treatment plant outfall pipe within the Columbia River. -and- MOTION: I move to approve Resolution No. 4362, authorizing the City Manager to execute Aquatic Lands Outfa ll Easement No. 51-103464 for the 30-year term easement with the State of Washington Department of Natural Resources for the new wastewater treatment plant outfall pipe within the Columbia River. 195 - 198 (b) Resolution No. 4363 Bid Award for the I-182 and Broadmoor Boulevard Interchange MOTION: I move to approve Resolution No. 4363, awarding Bid No. 21292 for the I-182 and Broadmoor Boulevard Interchange Project to Nelson Construction Group, of Walla Walla, Washington; and further authorize the City Manager to execute the contract documents. Page 3 of 273 9. UNFINISHED BUSINESS 199 - 267 (a) Continued Right-of-Way Vacation for Snake River Agriculture LLC (VAC 2022-006) MOTION: I move to deny a request to vacate a portion of South Oregon Avenue located at the southeast corner of East "A" Street and South Oregon Avenue. 10. NEW BUSINESS 268 - 271 (a) Arts & Culture Commission Appointment MOTION: I move to confirm Mayor Barajas's appoint of Aislin Maloney to the Arts & Culture Commission as its Youth Representative, Position No. 7, with a term from July 17, 2023 to January 1, 2024. 11. MISCELLANEOUS DISCUSSION 12. EXECUTIVE SESSION 13. ADJOURNMENT 14. ADDITIONAL NOTES (a) (RC) Roll Call Vote Required * Item not previously discussed Q Quasi-Judicial Matter MF# “Master File #....” 272 - 273 (b) Adopted 2020-2021 Council Goals (Reference Only) (c) REMINDERS • Monday, JULY 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.) • Tuesday, JULY 18, 4:00 PM: Pasco Public Facilities District Board Meeting – Council Chambers, Pasco City Hall (MAYOR PRO TEM CRAIG MALONEY, Rep.; COUNCILMEMBER DAVID MILNE, Alt.) • Thursday, JULY 20, 3:30 PM: Franklin County Emergency Management Council Meeting – EMS Office, 1011 E. Ainsworth (MAYOR BLANCH BARAJAS, Rep.; COUNCILMEMBER DAVID MILNE, Alt.) • Thursday, JULY 20, 4:00 PM: Tri-Cities National Park Committee Meeting – Tri-Cities Regional Business & Visitor Center, Bechtel Board Room, 7130 W. Grandridge Blvd., Page 4 of 273 Kennewick (MAYOR BLANCHE BARAJAS, Rep.; MAYOR PRO TEM CRAIG MALONEY, Alt.) • Monday, JULY 24, 4:00 PM: Hanford Area Economic Investment Fund Advisory Committee Meeting – Ben Franklin Transit Main Conference Room (COUNCILMEMBER PETE SERRANO, Rep.) This meeting is broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive. Audio equipment available for the hearing impaired; contact the Clerk for assistance. Servicio de intérprete puede estar disponible con aviso. Por favor avisa la Secretaria Municipal dos días ante s para garantizar la disponibilidad. (Spanish language interpreter service may be provided upon request. Please provide two business day's notice to the City Clerk to ensure availability.) Page 5 of 273 AGENDA REPORT FOR: City Council July 12, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Debra Barham, City Clerk City Manager SUBJECT: Approval of Meeting Minutes for June 20th, 26th, and July 10th I. REFERENCE(S): 06.20.2023, 06.26.2023, & 07.10.2023 Draft Council Minutes II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve the minutes of the Pasco City Council Regular Meeting held on June 20th and Regular Workshops held on June 26th and July 10, 2023. III. FISCAL IMPACT: None IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 6 of 273 MINUTES City Council Regular Meeting 7:00 PM - Tuesday, June 20, 2023 Pasco City Hall, Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor. ROLL CALL Councilmembers present: Blanche Barajas, Craig Maloney, Irving Brown, Joseph Campos, David Milne, Zahra Roach, and Pete Serrano Councilmembers absent: None Staff present: Richa Sigdel, Deputy City Manager; Darcy Buckley, Finance Director; Eric Ferguson, City Attorney; Ed Dunbar, Interim Fire Chief; Jesse Rice, Information Technology Director & Interim Administrative & Community Services Director; Brian Vaught, Police Captain; Jacob Gonzalez, Community & Economic Development Interim Director; Maria Serra, Deputy Public Works Director; and Debby Barham, City Clerk The meeting was opened with the Pledge of Allegiance. CONSENT AGENDA Approval of Meeting Minutes for June 5th and 12th To approve the minutes of the Pasco City Council Regular Meeting and Regular Workshop held on June 5, 2023 and June 12, 2023 respectively. Bills and Communications - Approving Claims in the Total Amount of $6,277,829.19 To approve claims in the total amount of $6,277,829.19($5,118,801.03 in Check Nos. 256419-256752; $2,000.00 in Electronic Transfer Nos. 841187; $14,933.68 in Check Nos. 54372-54399; $1,142,094.49 in Electronic Transfer Nos. 30191363- 30192006). Page 1 of 7Page 7 of 273 Resolution No. 4351 - Lease Agreement for the Readiness Center with Washington State Military Department To approve Resolution No. 4351, authorizing the City Manager to execute a lease agreement between the Washington State Military Department and the City of Pasco. Resolution No. 4352, Memorandum of Agreement - Quad-Cities Stormwater and Water Conservation Education To approve Resolution No. 4352, authorizing the City Manager to execute the Memorandum of Agreement with the Cities of Kennewick, Richland, Pasco, West Richland and the Franklin Conservation District for public education program services. Resolution No. 4353 - Small Works Bid Award Pasco PWRF Field Pivot No. 2 - Pivot Replacement To approve Resolution No. 4353, awarding Small Works Bid No. 23950 for the Pasco PWRF Field Pivot No. 2 - Pivot Replacement Project to Lad Irrigation, Inc., of Pasco, Washington, and further, authorize the City Manager to execute the contract documents. Resolution No. 4355 - Updated Bid Award Argent Road Widening Phase 3 To approve Resolution No. 4355, Awarding the updated Bid No. 20010 for the Argent Road Widening Phase 3 Project to Apollo, Inc., of Kennewick, Washington, and further, authorize the City Manager to execute the contract documents. Reappointment to the Joint Housing Authority Board To reappoint Brian Griffith to the Joint Housing Authority Board under Position No. 2 for a five (5) term, effective January 29, 2023 through January 28, 2028. Cancellation of July 3, 2023 Council Meeting To approve the cancellation of the regularly scheduled Council Meeting set for July 3, 2023. MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Roach to approve the Consent Agenda as read. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Brown, Councilmember Campos, Councilmember Milne, Councilmember Roach, and Councilmember Serrano Page 2 of 7Page 8 of 273 PUBLIC COMMENTS Tom Kidwell, Pasco resident, distributed books [prepared by John Scheline] related to the pending Broetje Orchards/New Heritage project [Comprehensive Plan Amendment (CPA2022-003)] and commented on the project. Mark McKee, Pasco resident and Clean Sweep member, commented on the Clean Sweep outreach program and the required permits for each event. David Cloug, Pasco resident, reported an accident he had along the bike pathway and asked for the City to consider an alternative to the vehicle boulders near Road 54. Lynn McKee, Pasco resident and Clean Sweep member, commented on the Clean Sweep outreach program in Pasco. Darrell Holman, Clean Sweep member, provided a testimony for the Clean Sweep outreach program. James Hamilton, Clean Sweep and St. Vincent DePaul Food Bank member, commented on homelessness and the need to help these individuals. Dori Draco, Clean Sweep member, commented on the inception of Clean Sweep. John Scheline, B4 Development & Consulting and Snake River Ag representative, commented on the proposed right-of-way vacation request. He expressed concern about the length of time this item has taken for Council to consider. REPORTS FROM COMMITTEES AND/OR OFFICERS Verbal Reports from Councilmembers Mayor Pro Tem Maloney reported on the recent Pasco Public Facilities District Board meeting that he attended. He also stated that he met with U.S. Senator Cantwell last week related to the railway line and the Process Water Reuse Facility (PWRF). Mayor Barajas commented on the Juneteenth celebration held on June 17th in Kurtzman Park. She expressed appreciation to staff that participated in the Saturday event. Mr. Brown also commented on the Juneteenth Friday and Saturday events, noting that it was well received and the audience was very engaged. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS RELATING THERETO Page 3 of 7Page 9 of 273 Public Hearing for Resolution No. 4356 - Adopting 2024-2029 Six-Year Transportation Improvement Plan Mr. Gonzalez provided a brief report on the proposed 2024 -2029 Six-Year Transportation Improvement Plan (Six-Year TIP). Mayor Barajas declared the Public Hearing open to consider the proposed Six-Year TIP. John Scheline, Pasco resident, noted that the Six -Year TIP does not include any projects along Oregon Avenue and A Street through 2029. He also commented on another property that is currently undeveloped and the current layout of future streets in that area. Following three calls for comments, and there being none, Mayor Barajas declared the Public Hearing closed. Mayor Pro Tem Maloney commented on his previous comments about the need for a bicycle connection between the bike path and the downtown area and expressed disappointment that it was not incorporated into the Six -Year TIP. He also asked about the Broadmoor area projects, specifically if the traffic plans are set or may they be deviated from. Mr. Gonzalez responded to the bicycle connection request and the opportunity for Council to review the next TIP earlier in the process. He stated that the Broadmoor area traffic plans may deviate slightly; however, the grid like patterns will remain in place, which was was previously approved in other City plans, such as the Broadmoor Master Plan and Transportation System Master Plan to name a few. Mr. Brown asked for clarification regarding the comments and requests Council provided during the last meeting and Mr. Gonzalez provided clarification. Ms. Roach expressed support for the bike and pedestrian access along the river. She noted that the Bicycle Plan was created some time ago and it needs to be embraced as it is a priority of hers. She as ked about the prioritization of the Six- Year TIP projects the removal of the levee along the Columbia River between Road 54 and Road 68, and signage regarding motorized vehicles on the bike path. Mr. Rice and Mr. Gonzalez responded to Ms. Roach's inquiries. MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Serrano to approved Resolution No. 4356, adopting the 2024 -2029 Six-Year Transportation Improvement Program for the City of Pasco. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Brown, Councilmember Campos, Councilmember Milne, Councilmember Roach, and Councilmember Serrano Page 4 of 7Page 10 of 273 ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS Resolution No. 4357 - Amendment No. 2 to MacKay Sposito Professional Services Agreement for the Lewis Street Corridor (2nd to 5th Ave) Improvements Project Ms. Serra provided a brief report on the proposed second amendment to the Professional Services Agreement for the Lewis Street Corridor Improvements project. Mayor Pro Tem Maloney requested confirmation that this amendment included all the items within the Downtown Pasco Master Plan. Ms. Serra confirmed the amendment included the additional items a ssociated with the Downtown Pasco Master Plan. MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Serrano to approve Resolution No. 4357, authorizing the City Manager to execute Amendment No. 2 for the Professional Services Agreement (PSA) with MacKay Sposito for the Lewis Street Corridor (2nd to 5th Ave) Improvements. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Brown, Councilmember Campos, Councilmember Milne, Councilmember Roach, and Councilmember Serrano Resolution No. 4354 - Change Order No. 6 for the West Pasco Water Treatment Plant Phase 2 Ms. Serra provided a brief report on the West Pasco Water Treatment Plant Phase Change Order No. 6. MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Milne to approve Resolution No. 4354, authorizing the City Manager to execute Change Order No. 6 to the construction contract with Apollo, Inc. for the West Pasco Water Treatment (WPWTP) Improvements, Phase 2 project. RESULT: Motion carried unanimously 7-0 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Brown, Councilmember Campos, Councilmember Milne, Councilmember Roach, and Councilmember Serrano UNFINISHED BUSINESS Page 5 of 7Page 11 of 273 Continuation of Right-of-Way Vacation for Snake River Agriculture LLC (VAC 2022-006) Mr. Gonzalez requested that this item be continued to the July 17th Council meeting. Mr. Campos requested confirmation that the public hearing was held and completed during a previous meeting (June 5, 2023). Mr. Ferguson confirmed that the public hearing was held and closed, and it is now before Council to approve or deny the the right -of-way vacation. However, the petitioner provided additional information and asked staff to investigate that information and then come back to Council. He stated that staff had not completed that review and needs additional time. Staff will be able to respond by the July 17th meeting. Mayor Pro Tem Maloney noted that he intentionally continued it to this meeting as he did not want to leave this item out for a longer period of time. He also stated that he was in favor of continuing this item to the July 17th meeting because of the nature of the request of vacating City right-of-way as it is important to confirm that the vacation of right-of-way is appropriate now and for future needs of street safety. MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Campos to continue the proposed Right-of-Way Vacation for Snake River Agriculture, LLC to the July 17, 2023, regular Council Meeting. RESULT: Motion carried unanimously. 5-2 AYES: Mayor Barajas, Mayor Pro Tem Maloney, Councilmember Brown, Councilmember Campos, and Councilmember Roach NAYS: Councilmember Milne and Councilmember Serrano MISCELLANEOUS DISCUSSION Mayor Barajas welcomed Ms. Sigdel back to the City as its Deputy City Manager. Interim Fire Chief Dunbar reported on the recent Fire Academy graduation. Mr. Brown commented on the Clean Sweep members and expressed appreciation for their efforts. He expressed support for policies and procedures create safety and he expressed a desire to ensure that the City and Clean Sweep work together to help take care of those in need. Mr. Campos agreed with Mr. Brown and that the City needs to be fair with every one. Mayor Pro Tem Maloney also commented on organizations coming into the Pasco downtown area to help individuals who are homeless and in need and how can this population can be helped through various partnerships. Page 6 of 7Page 12 of 273 Mr. Gonzalez announced the 2024 Community Development Block Grant (CDBG) applications are open until June 30, 2023, and he noted the three key priorities for the CDBG program. Ms. Roach also commented on the CDBG program. EXECUTIVE SESSION Council adjourned into Executive Session at 8:24 PM for ten (10) minutes to discuss with legal counsel about legal risks of current or proposed action per RCW 42.30.110(1)(i) with the Deputy City Manager, City Attorney, Interim Administrative & Community Services Director, and Finance Director. At 8:33 PM Mayor Barajas announced that the Executive Session would continue for another five minutes. At 8:38 PM Mayor Barajas announced that the Executive Session would continue for another ten minutes. Mayor Barajas called the meeting back to order at 8:48 PM. ADJOURNMENT There being no further business, the meeting was adjourned at 8:48 PM. PASSED and APPROVED this ____ day of ________________, 20__. APPROVED: ATTEST: Blanche Barajas, Mayor Debra Barham, City Clerk Page 7 of 7Page 13 of 273 MINUTES City Council Workshop Meeting 7:00 PM - Monday, June 26, 2023 Pasco City Hall, Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor. ROLL CALL Councilmembers present: Blanche Barajas, Craig Maloney, Joseph Campos, David Milne, Zahra Roach, and Pete Serrano Councilmembers absent: Irving Brown Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Darcy Buckley, Finance Director; Eric Ferguson, City Attorney; Ed Dunbar, Interim Fire Chief; Jesse Rice, Information Technology Director & Interim Administrative & Community Services Director; Ken Roske, Police Chief; and Debby Barham, City Clerk The meeting was opened with the Pledge of Allegiance. VERBAL REPORTS FROM COUNCILMEMBERS Mr. Campos reported on the Benton, Franklin & Walla Walla Counties Good Roads & Transportation Association meeting he recently attended. Ms. Roach reported on Visit Tri-Cities noting that the Tri-Cities was designated as the American World War II Heritage City, the only one designated as such in Washington State. Mayor Pro Tem Maloney reported on the Association of Washington Cities (AWC) Conference and the ACW Legislative Committee he recently attended. Page 1 of 2Page 14 of 273 ITEMS FOR DISCUSSION Resolution - Purchase of Citywide Genetec Enterprise Access Control System Mr. Rice provided a brief report on the sole source request for an enterprise access control and security system for the City and the need to purchase the Genetec's Unified Security System for the City. Mr. Serrano noted that many of the items associated with this new system were repurposed from previous systems for this project. MISCELLANEOUS COUNCIL DISCUSSION Mr. Campos commented on zero scaping and the possibility of a cost savings for the City. Ms. Roach concurred with Mr. Campos regarding water saving efforts. Mayor Pro Tem Maloney suggested that staff reach out to the Tribal members for their recommendations for native plants. Mr. Serrano commented on the pending fencing ordinance. Mayor Barajas announced that the July 3, 2023, Council Meeting was cancelled. EXECUTIVE SESSION ADJOURNMENT There being no further business, the meeting was adjourned at 7:15 PM. PASSED and APPROVED this __ day of ________________, 20__. APPROVED: ATTEST: Blanche Barajas, Mayor Debra Barham, City Clerk Page 2 of 2Page 15 of 273 MINUTES City Council Workshop Meeting 7:00 PM - Monday, July 10, 2023 Pasco City Hall, Council Chambers & GoToWebinar CALL TO ORDER The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor. ROLL CALL Councilmembers present: Blanche Barajas, Craig Maloney, Irving Brown, Joseph Campos, David Milne, and Zahra Roach Councilmembers absent: Pete Serrano Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager; Darcy Buckley, Finance Director; Kevin Crowley, Fire Chief; Eric Ferguson, Jacob Gonzalez, Community & Economic Development Interim Director; City Attorney; Jesse Rice, Information Technology Director & Interim Administrative & Community Services Director; Ken Roske, Police Chief; Steve Worley, Public Works Director; and Debby Barham, City Clerk The meeting was opened with the Pledge of Allegiance. VERBAL REPORTS FROM COUNCILMEMBERS Ms. Roach reported on the Pasco Chamber of Commerce meeting she recently attended. She also commented on the Grand Old Fourth of July Parade and complimented staff for the route change. Mayor Pro Tem Maloney commented on the Fourth of July events and als o complimented staff for their work before, during and after the events throughout the day. Mr. Milne praised staff for the preparation and execution of the Grand Old Fourth of July Parade and provided accolades to the Mustang Club and Parade Grand Mars hall Felix Vargas. Page 1 of 3Page 16 of 273 Mr. Brown commented on the Grand Old Fourth of July Parade and complimented staff for their work for the day's events. He also commented on the Grand Mason convention where he and Mayor Barajas joined the Masons on Sunday afternoon. Mayor Barajas Grand Masons Convention, the Fourth of July events and thanked staff. She also welcomed Kevin Crowley to the City as Pasco's new Fire Chief. ITEMS FOR DISCUSSION Update on Hanford Communities Mr. Lincoln introduced Executive Director of Hanford Communities, David Reeploeg. Mr. Reeploeg first introduced Bethany Close, a new member to the Hanford Communities staff. Then he provided a recap of Hanford Communities 2022 efforts, as well as the 2023 outlook for the continued cleanup efforts and an update on the status of the policy stakeholders. Lastly, he highlighted the Hanford Communities priorities for this year. Council asked a few questions regarding the clean up projects and Mr. Reeploeg responded to those inquiries. Ordinance - Amending the Pasco Municipal Code Title 25 Related to Residential Design Standards Mr. Gonzalez provided a brief report on the status of updating the residential design standards, noting that it has been discussed and reviewed with the Planning Commission and community stakeholders in several meetings. Council and Mr. Gonzalez briefly discussed specifics within the proposed residential design standards as well as additional updates to the zoning code. Mr. Campos congratulated Mr. Gonzalez for his recent promotion as the Community & Economic Development Director. Shoreline Master Program Approval (MF# PLAN 2013-001) Mr. Gonzalez introduced Ben Floyd, with White Bluffs Consulting, who provided a brief report on the proposed updates to the Shoreline Master Program (SMP). He also explained the next steps to finalize the SMP with the Washington State Department of Ecology approval. He noted that the Dept. of Ecology has encouraged the City to submit grant application to create user guide. Mr. Maloney commented on an individual who stated that the City is violating the current Shoreline regulations. Mr. Gonzalez will respond to Council within the next few days. MISCELLANEOUS COUNCIL DISCUSSION Page 2 of 3Page 17 of 273 Mr. Campos congratulated Fire Chief Crowley for joining the City of Pasco and then asked about the Fourth of July calls for service to the Fire Department. Chief Crowley confirmed that the calls for service were minimal. He provided a brief report from the Fire Department. Mr. Campos offered a suggestion that the City provide a designated area or areas for residents to light fireworks with Fire staff on hand to assist and respond to incidents, if needed. Mr. Campos commented on the upcoming Schlagel Park ribbon event and he requested an update on the damaged dock. Mr. Lincoln commented on the search for the City's Fire Chief, as well as the Community & Economic Development Director and stated that both Kevin Crowley and Jacob Gonzalez were the right individuals for each position. Mayor Pro Tem Maloney asked about Process Water Reuse Facility and the Water Treatment Processors' Agreements. Mr. Worley responded with a brief overview, stating more will follow shortly. Police Chief Roske provided a chart of the Fourth of July Pasco Police Department statistics, which spanned over a five-year period. He noted that the trend for calls for service continues to lower from year-to-year. Mr. Rice provided a brief report on the Fourth of July City sponsored events that spanned the day. He also announced the Schlagel Park ribbon cutting event was scheduled for Wednesday, July 12th. Ms. Roach expressed her condolences of the recent passing of a City of Pasco staff member. ADJOURNMENT There being no further business, the meeting was adjourned at 8:24 PM. PASSED and APPROVED this __ day of ________________, 20__. APPROVED: ATTEST: Blanche Barajas, Mayor Debra Barham, City Clerk Page 3 of 3Page 18 of 273 AGENDA REPORT FOR: City Council July 13, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Darcy Buckley, Finance Director Finance SUBJECT: Bills and Communications - Approving Claims in the Total Amount of $14,174,080.38 and Bad Debt Write-off Totaling $ 99,385.25. I. REFERENCE(S): Accounts Payable 07.17.23 Bad Debt Write-off/Collection II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: To approve claims in the total amount of $14,174,080.38 ($9,264,836.67 in Check Nos. 256753 - 257388); ($45,473.35 in Check Nos. 54400 - 54463); ($2,483,413.54 in Electronic Transfer Nos.841118 - 841179, 841188 - 841268, 841270 - 841479, 841529 - 841539, 841546 - 841548, 841550 - 841553, 841555 - 841619, 841621 - 841622, 841689 - 841692, 841727 - 841730, 841747 - 841762, 841766, 841773 - 841785); ($2,380,207.69 In Electronic Transfer Nos. 30192007 - 30193317); and ($149.13 in Electronic Transfer No 922). To approve bad debt write-off for accounts receivable including Utility Billing, Ambulance, Cemetery, General Accounts, and Miscellaneous Accounts in the total amount of $99,385.25 and, of that amount, authorize $99,385.25 to be turned over for collection. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: V. DISCUSSION: Page 19 of 273 REPORTING PERIOD: July 17, 2023 Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined Check Numbers 256753 - 257388 54400 - 54463 Total Check Amount $9,264,836.67 $45,473.35 Total Checks 9,310,310.02$ Electronic Transfer Numbers 841118 - 841179 30192007 - 30193317 922 841188 - 841268 841270 - 841479 841529 - 841539 841546 - 841548 841550 - 841553 841555 - 841619 841621 - 841622 841689 - 841692 841727 - 841730 841747 - 841762 841766 841773 - 841785 Total EFT Amount $2,483,413.54 $2,380,207.69 $149.13 $0.00 Total EFTs 4,863,770.36$ Grand Total 14,174,080.38$ Councilmember 100 1,515,753.92 110 53,712.64 140 9,790.28 142 1,902.25 145 1,777.30 150 110,353.67 160 11,616.87 165 7,230.67 168 73,953.95 170 1,414.34 180 1,963.19 185 884.29 188 48,820.95 190 36,156.16 191 13,541.67 194 33,834.64 195 405.39 196 HOTEL/MOTEL EXCISE TAX 21,347.20 367 3,343,867.93 410 3,517,520.21 510 114,935.50 511 20,238.83 515 205,824.00 516 240,040.53 520 655,980.03 630 3,603.84 690 4,127,610.13 GRAND TOTAL ALL FUNDS:14,174,080.38$ FLEX PAYROLL CLEARING We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this 17th day of July, 2023 that the merchandise or services hereinafter specified have been received and are approved for payment: EQUIPMENT RENTAL - OPERATING GOVERNMENTAL EQUIPMENT RENTAL - OPERATING BUSINESS EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL EQUIPMENT RENTAL - REPLACEMENT BUSINESS MEDICAL/DENTAL/VISION INSURANCE ECONOMIC DEVELOPMENT STADIUM/CONVENTION CENTER GENERAL CAP PROJECT CONSTRUCTION UTILITY, WATER/SEWER RIVERSHORE TRAIL & MARINA MAIN SPECIAL ASSESSMENT LODGING REVOLVING ABATEMENT TRAC DEVELOPMENT & OPERATING CEMETERY ATHLETIC PROGRAMS ANIMAL CONTROL SENIOR CENTER OPERATING MULTI-MODAL FACILITY C.D. BLOCK GRANT HOME CONSORTIUM GRANT MARTIN LUTHER KING COMMUNITY CENTER AMBULANCE SERVICE Councilmember SUMMARY OF CLAIMS BY FUND: GENERAL FUND STREET City of Pasco, Franklin County, Washington We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim. Adam Lincoln, City Manager Griselda Garcia, Finance Manager June 15 - July 12, 2023 C I T Y O F P A S C O Council Meeting of: Accounts Payable Approved The City Council Page 20 of 273 BAD DEBT WRITE-OFF/COLLECTION March 1 – March 31, 2023 1. UTILITY BILLING - These are all inactive accounts, 60 days or older. Direct write-offs under $20 with no current forwarding address or are accounts in "occupant" status. Accounts submitted for collection exceed $20.00. 2. AMBULANCE - These are all delinquent accounts over 90 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. Direct write off including DSHS and Medicare customers; the law requires that the City accept assignment in these cases. 3. CODE ENFORCEMENT – LIENS - These are Code Enforcement violation penalties which are either un-collectable or have been assigned for collections because the property owner has not complied or paid the fine. There are still liens in place on these amounts which will continue to be in effect until the property is brought into compliance and the debt associated with these liens are paid. 4. CEMETERY - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. 5. GENERAL - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. 6. MISCELLANEOUS - These are delinquent accounts over 120 days past due or statements are returned with no forwarding address. Those submitted for collection exceed $10.00. Direct Write-off Referred to Collection Total Write-off Utility Billing $.00 .00 .00 Ambulance $00 00 00 Code Enforcement $.00 86,084.00 86,084.00 Cemetery $.00 .00 .00 General $.00 .00 .00 Miscellaneous $.00 13,301.25 13,301.25 TOTAL:$00 99,385.25 99,385.25 Page 21 of 273 AGENDA REPORT FOR: City Council July 12, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Jesse Rice, Director Information Technology SUBJECT: Resolution No. 4358 - Purchase of Citywide Genetec Enterprise Access Control System I. REFERENCE(S): Proposed Resolution Sole Source Worksheet II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4358, waiving the competitive bidding requirements and approving the purchase of Genetec Door Access and Video Security Monitoring System from Interwest Technology Systems Inc.. III. FISCAL IMPACT: 2023 Purchase Request Total: $460, 285.95 IV. HISTORY AND FACTS BRIEF: The City of Pasco (City) uses multiple door access control and video security systems at various City facilities. Many of the systems were installed prior to the City's enterprise technology network and did not have the capability to be inter- connected or managed by an enterprise system. As a result, staff now manage multiple systems, which requires adding and removing users to each system as needed for staff access, supporting multiple types of equipment, and using different vendors for installation or issue resolution. In 2022, based on Information Technology staff research on Enterprise Access Control and Security Systems, the City's current access control and video security systems, input from City staff, and other local agency selected systems, staff selected Genetec Inc. to be the City's enterprise unified access control and video security system. Page 22 of 273 Genetec's Unified Security System offers many benefits, including managing both access control and video security in a single system, integration with City computer user accounts to reduce duplication of management, mobile device application to allow offsite door access control or video review, the ability to add advanced features, like auto license plate readers to improve security monitoring at our critical water and wastewater plants, or integration with other local agencies using Genetec systems. Genetec is currently installed and supported at City facilities by Interwest Technology Systems Inc., the only local authorized vendor in the Tri -Cities area. The access control portion system is in use at Fire Station 84, Road 68 Shop, remodeled Human Resources Office within City Hall, Pasco Police Basic Law Enforcement Academy, and planned for installation at Fire Station 85 and the Tri- Cities Animal Shelter. The video portion of the system is used at 17 City sites and several traffic intersections with currently 130 cameras. During the preparation of 2023-2024 budget and continuing into 2023, staff identified several City facilities that would benefit from the conversion or addition of Genetec. These sites include the remainder of City hall, main Police Station, Police Downtown Mini-Station, Administrative & Community Services Facilities Shop, cemetery Office, Multimodal Station, First Avenue Center, Parks Maintenance Shop, Butterfield Water Treatment Plant, Wastewater Treatment Plant, West Pasco Water Treatment Plant, Water Tower, Fire Station 81, Fire Station 82, Fire Station 83, and Fire Training Garage. Site Name Genetec System Door Hardware Site Total Tax Total Main Police Station $ 98,985.00 re-use $ 110,474.00 $ 9,942.66 $ 120, 416.66 City Hall $ 37,689.00 re-use $ 41,452.00 $ 3,730.68 $ 45,182.68 Parks Maint.. Shop $ 10,894.00 re-use $11,925.00 $1,073.25 $12,998.25 ACS Facilities Shop $ 7,346.00 re-use $ 7,839.00 $ 705.51 $8,544.51 Cemetery Office $ 4,576.00 re-use $ 5,196.00 $ 467.64 $5,663.64 Police DT Mini- Station $ 4,175.00 re-use $ 4,852.00 $ 436.68 $5,288.68 Multimodal Station $ 4,576.00 re-use $ 5,196.00 $ 467.64 $ 5,663.64 Butterfield WTP $ 38,921.00 $ 1,892.00 $ 40,813.00 $3,673.17 $ 44, 486.17 Wastewater $ 6,957.00 re-use $ 7,443.00 $ 669.87 $ 8,112.87 Fire Station 81 $ 31,452.00 $ 8,944.90 $ 43,309.90 $ 3,897.89 $ 47,207.79 Fire Station 82 $ 25,144.00 $ 8,424.00 $ 35,762.00 $ 3,218.58 $38,980.58 Fire Station 83 $ 18, 279.00 re-use $ 19,985.00 $1,798.65 $ 21,783.65 Fire Training Garage $ 17,854.23 re-use $ 17,854.23 $ 1,606.88 $ 19,461.11 Page 23 of 273 First Avenue Center $ 4,576.00 re-use $ 4,576.00 $ 411.84 $4,987.84 West Pasco WTP $ 42,573.00 $4,379.20 $ 48,272.20 $ 4,344.50 $ 52,616.70 Water Tower $ 15,826.00 $1,505.36 $ 17,331.36 $ 1,559.82 $ 18,891.18 TOTAL $ 422,280.69 $ 38,005.26 $ 460,285.95 The 2023 project funds include $355,000 combined in Information Technology and Public Works budgets. Due to increased costs, inclusion of sales tax, and the additional identified facilities since budget process, the total cost to install all listed sites is $460,285.95, exceeding planned project budget by ~$105,000.00. V. DISCUSSION: At the June 26th of Council Workshop, staff discussed the purchase of the Genetec Unified Security System at listed facilities by Sole Source to contract with midDuring the Systems Technology Interwest Inc. -review biennium process, it may be deemed necessary to increase the General Fund budget to accommodate this purchase. At this time, however, staff recommends abstention from budget amendment until budgetary need in the General Fund is known. Budgetary savings in other expense categories may provide adeq uate cushion to forego an amendment depending upon actual activity. Staff recommends approval of the Resolution approving the sole source purchase. Page 24 of 273 Resolution Sole Source Genetec System - 1 RESOLUTION NO. _______ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, WAIVING THE COMPETITIVE BIDDING REQUIREMENTS AND APPROVING THE PURCHASE OF GENETEC ACCESS AND VIDEO SECURITY MONITORING SYSTEM. WHEREAS, it is critical for the City of Pasco (City) to have proper equipment to perform facility access control and video security monitoring functions; and WHEREAS, the City has the need to purchase enterprise access control and video security monitoring equipment; and WHEREAS, the City currently uses multiple access control and video security monitoring equipment and accessories; and WHEREAS, the City has established work standards that are supported by the use of Genetec Access Control and Video Security Monitoring System equipment; and WHEREAS, the Council of the City of Pasco hereby determines that the paramount considerations in the acquisition of Genetec Access Control and Video Security Monitoring System; and WHEREAS, the use of Genetec Access Control and Video Security Monitoring System equipment is clearly and legitimately limited to a single source of supply, as detailed in the Sole Source Worksheet (Exhibit A), to support current operation standards, this purchase becomes subject to waiving competitive bidding requirements per RCW 35.23.352(9) competitive bidding requirements and RCW 39.04.280(1)(a) sole source and RCW 39.04.280 (1)(b) special market conditions; and WHEREAS, RCW 39.04.280(2)(a) requires that prior to utilizing the sole source exemption the City Council must first adopt a resolution reciting the factual basis supporting the exemption; and WHEREAS, the City Council pursuant to 39.04.280(2)(a) finds that such factual basis as described herein and detailed in the Sole Source Worksheet does support application of the sole source exemption as pertaining to the purchase of Genetec Access Control and Video Security Monitoring System. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: Section 1. The City Council of Pasco hereby find the above-described circumstance is justification for the waiver of bidding requirements under the authority of RCW 35.23.352(9) and pursuant to sole source provider (RCW 39.04.280(1)(a)) and special facilities or market conditions Page 25 of 273 Resolution Sole Source Genetec System - 2 (RCW 39.04.280(1)(b)) and, therefore, the bidding requirement is hereby waived for the purchase of Genetec Access Control and Video Security Monitoring System equipment from Interwest Technology Systems Inc. Section 2. That the City of Pasco Information Technology Department purchase Genetec Access Control and Video Security Monitoring System equipment from Interwest Technology Systems Inc. for an amount not to exceed the sum of $460,285.95. Be It Further Resolved, that this Resolution shall take effect immediately. PASSED by the City Council of the City of Pasco, Washington this, on ___ day of ____________, 2023. _____________________________ Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 26 of 273 Page 27 of 273 Page 28 of 273 AGENDA REPORT FOR: City Council July 12, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Steve Worley, Director Public Works SUBJECT: Resolution No. 4359 – Project Acceptance for Broadmoor Tax Increment Funding (TIF,) Phase 1A (Rough Grading) Project I. REFERENCE(S): Resolution PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4359, accepting work performed by Goodman & Mehlenbacher Enterprises (GAME), Inc., under contract for the Broadmoor TIF, Phase 1A (Rough Grading) Project. III. FISCAL IMPACT: See below. IV. HISTORY AND FACTS BRIEF: Broadmoor TIF, Phase 1A (Rough Grading) The project bid was awarded by Council action to Goodman & Mehlenbacher Enterprises (GAME), Inc. of Richland, WA on January 23, 2023, in the amount of $600,000. The project is now complete and was constructed per project specifications. Final construction contract costs were $577,245.00 (resulting in $22,755 reduction from the contract award). Formal acceptance of public works projects is required by State law and start the 45-day period within which an outside vendor, supplier or laborer would have an opportunity to file a claim against this project pursuant to RCW 60.28.011 (2). Upon completion of the 45-day lien filing period, retainage being held by the City may be released upon receipts of the following: • An affidavit of no liens Page 29 of 273 • A release from the Department of Revenue that all taxes have been paid • A release from any claims from the Department of Labor and Industries, pursuant to RCW 60.28.051 V. DISCUSSION: Staff recommends City Council's acceptance of the project as constructed by the above listed contractor. Page 30 of 273 Resolution – Broadmoor TIF, Phase 1A (Rough Grading) Project Closeout - 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY GOODMAN & MEHLENBACHER ENTERPRISES (GAME), INC., UNDER CONTRACT FOR THE BROADMOOR TAX INCREMENT FINANCING, PHASE 1A (ROUGH GRADING) PROJECT. WHEREAS, the work performed by GAME, Inc., under contract for the Broadmoor Tax Increment Financing (TIF), Phase 1A (Rough Grading) project, has been examined by City of Pasco (City) staff and has been found to be in apparent compliance with the applicable project specifications and drawings; and WHEREAS, it is the City staff’s recommendation that the City of Pasco formally accepts the contractor's work and the project as complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council concurs with the Staff’s recommendation and thereby accepts the work performed by GAME, Inc, under contract for the Broadmoor TIF, Phase 1A (Rough Grading) project, as being completed in apparent compliance with the project specifications and drawings. Be It Further Resolved that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance. Be It Further Resolved that the final payment of retainage being withheld pursuant to applicable laws, regulations and administrative determination shall be released upon satisfaction of same and verification thereof by the Public Works Director and Finance Director. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of July, 2023. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 31 of 273 Pasco City Council Regular Meeting July 17, 2023Page 32 of 273 Broadmoor TIF, Phase 1A (Rough Grading) Project #22-419 Contract Awarded on January 23, 2023, to Goodman & Mehlenbacher Enterprises, Inc. for $600,000Page 33 of 273 Broadmoor TIF, Phase 1A (Rough Grading) Before Page 34 of 273 Broadmoor TIF, Phase 1A (Rough Grading) In Progress Page 35 of 273 Broadmoor TIF, Phase 1A (Rough Grading) In Progress Page 36 of 273 Broadmoor TIF, Phase 1A (Rough Grading) After Final Construction Cost: $577,245.00Page 37 of 273 Questions?Page 38 of 273 AGENDA REPORT FOR: City Council July 13, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Darcy Buckley, Finance Director Finance SUBJECT: General Fund Monthly Report - May 2023 I. REFERENCE(S): General Fund Report II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: N/A III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: Attached is the General Fund financial update for May 2023. The General Fund is a major fund of the City. It is the primary governmental fund of the City and reflects all revenues and expenditures not accounted for in another fund. The administration provides quarterly reports to Council for other funds. V. DISCUSSION: Please view the attached report for details. Page 39 of 273 May 2023 General Fund Report Prepared by Darcy Buckley, Finance Director Page 40 of 273 Permit Type 2022 Count 2022 Permit Value (Millions) 2023 Count 2023 Permit Value (Millions % Change Count % Change Dollars Commercial 212 $56.95 206 $105.34 -3%85% Industrial 30 6.78 31 12.52 3%85% Mobile Home 3 0.245 3 0.260 0%6% Residential 906 59.58 891 40.98 -2%-31% Total 1,151 $123.56 1,131 159.11 -2%29% Building Permit Activity General Fund Financial Report / Page 1 The table above reflects year-to-date activity for the years 2022 and 2023. All permitted activity in the City is included in these totals whether a small or large scale improvement or new construction. While the count of permits is lower, permit values overall have increased. Notable additions are the increase in multi-family permits. There are seven additional permits issued through May of 2023. Also, permit requests for accessory dwelling units are increased by 600%, both in value and count. Page 41 of 273 Year First Quarter April May Total YTD May 2023 Over/(Under) 2020 $3,644,687 $1,035,223 $1,137,749 $5,817,659 36.4% 2021 3,721,404 1,227,871 1,543,997 6,493,271 22.2% 2022 5,600,693 1,646,788 1,968,818 9,216,299 (13.9%) 2023 $4,736,610 $1,409,478 $1,839,303 $7,935,250 The sales tax rate applied to City of Pasco retail sales is 8.9%. Of this sales tax rate, two tenths of one percent benefit the Pasco Public Facilities District. This voter approved tax to support construction of an Aquatic Center was implemented and started for sales of January 2023 forward. The City of Pasco receives a share of Regular and Optional sales tax (1%), Criminal Justice (0.1%), and Public Safety (0.3%). Taxes that make up the majority of the 8.9% rate are distributed to the State and to Franklin County. The City receives 85% of the 1% Regular and Optional sales tax. Criminal Justice and Public Safety sales tax is distributed to the City by Franklin County based on different distribution methods prescribed by State of Washington laws and weighted by population. Over the past many years the City has benefitted from construction sales tax. Large scale projects in 2022 significantly impacted sales tax revenue. Below is a comparison of monthly receipts by year. 2023 revenues are greater than those of 2020 and 2021, but below 2022 collection. One large scale project of 2022 attributes for the tax revenue difference. Sales Tax General Fund Financial Report / Page 3General Fund Financial Report / Page 2Page 42 of 273 The City has a biennial budget for the calendar years of 2023-2024. Through May of 2023 20.83% of the biennium has passed. The timing of revenue receipt differs. Sales tax, the General Fund's largest source of revenue, is recognized monthly but typically two months is arrears. The percentage recorded through May 2023 is 10.5% of biennial revenue. Due to the delayed receipt equating to 3/24th (three months of a two year period), the linear expectation is equal to 12.5%. For example, revenue reported through May of 2023 is for sales through March 2023. Not until year end is closed, approximately March 2024, will all sales tax revenue for 2023 be recorded. Utility tax is the second largest revenue in the General Fund. As of May 2023, 20.14% of budgeted utility tax revenue is recognized. While property tax revenues are recorded throughout the year, the largest installments are received in April and October. As expected, the revenue thus far accounts for 24.7% of the biennium. Charges for services category service provision to the public and to other City department. Included are items like interfund changes for engineering and administration, fire protection at the airport, utility bill collection fees and planning and permitting type fees. Internal billings are often a month in arrears making revenue lag slightly. The final large, anticipated revenue in 2023 is the issuance of debt to gain funding for projects to be undertaken as part of the establishment of the Broadmoor Tax Incremental Financing Area Improvements. Revenue Budget Comparison General Fund Financial Report / Page 3 Page 43 of 273 Category of Revenue Biennial Budget YTD May 2023 % Received Retail Sales Tax $44,450,700 $4,666,902 10.50% Retail Sales Tax - Public Safety & Criminal Justice 24,204,918 4,874,577 20.14 Utility Tax 25,863,203 6,387,026 24.70 Property Tax 8,780,000 1,064,466 12.12 Other Tax 2,392,852 602,579 25.18 Licenses & Permits 7,481,532 1,383,720 18.50 Intergovernmental 7,194,296 1,417,899 20.46 Charges for Goods & Services 19,688,841 3,076,008 15.62 Fines & Penalties 1,790,529 367,891 20.55 Miscellaneous 1,828,814 514,102 28.11 Interfund Loan Receipts 113,201 1,125 0.99 Transfer & Subsidy 35,796,816 587 0.00 Total $179,585,702 $24,410,882 13.59% Without Debt Proceeds $144,585,702 16.88% Revenue Budget Comparison Page 44 of 273 Category Name Biennial Budget Actual May 31, 2023 % Spent Operational Over/(Under) Linear Budget Transfer/Subsidy $40,131,302 $454,109 28.07% Salaries & Wages 67,719,671 11,132,501 16.44 (2,975,763) Personnel Benefits 21,686,728 3,921,980 18.13 (583,587) Supplies 6,665,827 1,413,522 21.20 24,808 Services 39,990,860 10,274,753 25.69 1,943,323 Capital Outlay 3,595,460 1,009,162 28.07 Debt Principal 8,202,300 0 0.00 Debt Interest 1,952,408 600 0.03 Total $189,884,556 $28,206,627 14.85%(1,591,219) Expense Budget Comparison May month-end elapsed time is approximately 20.83% of the biennium. Expenses recorded are less than budgeted as compared to time in biennium. Recurring, regular expenses in the form of labor costs are underspent as compared with time in biennium. Transfers and Subsidy - Expense activity is recorded in concert with capital project activity. The Capital Outlays category are reflective of budgeted tool and technology purchases. Spending is not anticipated to exceed budgetary levels. General Fund Financial Report / Page 7General Fund Financial Report / Page 5 Page 45 of 273 Category Name YTD May 31, 2023 YTD May 31, 2022 Change % Annual Increase Transfers & Subsidy $454,109 $155,784 $298,325 191.49% Salaries & Wages 11,132,501 9,070,972 2,061,529 22.73 Personnel Benefits 3,921,980 3,224,753 697,229 21.62 Supplies 1,413,522 635,635 777,887 122.3 Services 10,274,753 7,772,661 2,502,092 32.19 Capital Outlays 1,009,162 121,891 887,271 727.90 Debt Service 600 600 0 0.00 Total $28,206,627 $20,982,296 $7,224,331 34.43% Expense - Compare to Prior Year General Fund Financial Report / Page 8 As reflected on the previous page, total expenses are below linear budgetary expectation. It is valuable, however, to evaluate trends or changes from one year to the next. Salaries and Wages Category was budgeted to be 35% greater this biennium. As planned, new staff members have been added in 2023. Positions are being added cautiously. Personnel Benefits Category was budgeted 26% greater than the 2021-2022 biennium. General Fund Financial Report / Page 6 Page 46 of 273 General Fund Financial Report / Page 7 Capital Projects MAJOR PROJECTS IN PROGRESS General Fund provides support for capital projects on a regular basis. The fund also retains all Limited Tax General Obligation bonds proceeds and transfers those proceeds to General Construction Fund as needed per the accounting standards. Fire Station 85 - Fire Station 85 site work began in 2022. Fire Station 85 is anticipated to be completed near year's end. Funding is partially available from a LTGO bond issued in 2019. The majority of funding will be from issuance of new debt financing in 2023. The added cost of the new debt service to the General Fund is $615,000 annually. Total project spending thus far equals $4,450,532. In the month of May, progress related to construction of Fire Station 85 continued. A long anticipated project for the construction of the regional animal control facility is underway in 2023. Animal Control Facility - Funding for the facility is shared between the three partner municipalities; Pasco, Kennewick and Richland. The City of Pasco issued a bond in 2019 to support construction. As of the end of May, spending totals $274,745. Additional spending for related street and water infrastructure improvements totals $376,927. Page 47 of 273 With the City's continued growth and focus toward meeting both community needs and desires, demands on the General Fund have the potential to grow. Currently, there are known future costs. One known expense impact is the cessation of a SAFER grant beginning in the 2024 - 2025 biennial budget. Currently, a SAFER grant is funding the wages and related labor cost for 15 FTEs. Six of the staff members are charged to the General Fund supporting the Fire Department. The remaining are designated to the Ambulance Fund. As budgeted, the construction of Fire Station 85 started in 2022 and continues in 2023. The funding plan included issuance of a 2023 Limited Term General Obligation Bond. The anticipated debt service associated with the bond is $615,000 annually. As part of the LTGO planning, other capital needs are under consideration. Below is the impact of these costs on the General Fund. As the City prepares to compose the 2023-2029 Capital Improvement Plan, it will be crucial to identify funding capacity of various sources. Then, steps can be taken to pair funding capacity with community plans and capital needs. As part of that effort, similar to the calculations displayed below, both the impact to, and availability of, revenue sources will be evaluated. Description Budget Impact % of 2023 Budget Property Tax Cost at Levy Rate Per Assessed Value = $400,000 SAFER Grant Cessation $1,000,000 8.0%$0.10 $41 Fire Station 85 Debt Service 615,000 4.9%0.06 25 Total $1,615,000 12.9%$0.16 $66 Future Budgetary Considerations General Fund Financial Report / Page 10 General Fund Financial Report / Page 8 Page 48 of 273 General Fund Financial Report / Page 9 Financial Outlook Activity through May of 2023 results in both revenue and expenditures under reported as compared to a linear presentation of the 2023 -2024 budget. Of course, most revenues and expenses are not the product of consistently recurring activity. Based on this understanding, the current status of the budget-to-actual comparison is not cause for concern. The most noteworthy item of observation is sales tax receipts. Sales tax revenue is lagging behind that recorded in 2022. However, still robust as compared to 2021. Budgetarily, sales tax revenue is lower than collections if consistently receive throughout the year. While there are exceptions, sales taxes received thus far are from sales through March of 2023. There are known construction projects that have yet to be reflected in sales tax receipts. Summer time, construction related receipts will be impactful to budget-to-actual reality. Across City departments, various rate studies and analysis efforts are underway. Included are capital connection and impact fees, both of which are important to accurately price the cost of growth balanced against infrastructure investments made by existing rate and tax payers. Poised to start is the Capital Improvement Plan (CIP) for years 2023 - 2029. This plan is a crucial step, providing a method to integrate many department specific master and strategic plans with community needs and desires. While projects are only funded based on budget appropriation, the CIP informs budget level decisions. Budgetary decisions, and resulting efforts, of the City Council and City staff are based on the input of many stakeholders. The creation of the CIP will help inform challenging decision making and wise stewardship of public funds. Page 49 of 273 GENERAL FUND FINANCIAL REPORT / PAGE 10 Pasco Farmers' Market Page 50 of 273 AGENDA REPORT FOR:City Council July 14, 2023 TO:Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM:Jacob Gonzalez, Director Community & Economic Development SUBJECT:Q - Empire Estates Latecomer: Contested Area/Assessment I.REFERENCE(S): Exhibit A: Updated cost allocation summary Exhibit B: Example preliminary determination notice Exhibit C: Letters requesting a hearing to contest the assessment and/or assessment area Exhibit D: Example hearing notice Exhibit E: Example calculation update notice Exhibit F: Updated calculations Exhibit G: John Scheline email dated 6/29/2023 II.ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Motion Options: MOTION A: (For the Empire Brothers latecomer agreement) I move to approve the corrected reimbursement area and proportionate share calculation recommended by City Staff. -or- MOTION B: I move to approve the alternate assessment area and/or alternate proportionate share calculation as determined by Council. III.FISCAL IMPACT: None IV.HISTORY AND FACTS BRIEF: During the construction of the Empire Estates subdivision on Parcel No. Page 51 of 273 113883014 (Retired), Empire Brothers Construction LLC of Pasco WA (developer) installed improvements meeting the standards of the City of Pasco. These improvements included roads, a domestic water main, a sewer main. As part of this installation, the developer sought to recover some of the costs to extend other past infrastructure main sewer road, main, water this and properties that benefited from its availability through the Developer in Pasco described (Latecomers) Agreement Reimbursement process Municipal Code (PMC) Chapter 14.25 and Chapters 35.72 and 35.91 of the Revised Code of Washington (RCW). As equitable of cost of allocation an 14.25.040, Section PMC in stated construction is to be established, and the method or methods used to calculate the allocation of the assessment may be either: Front footage (linear feet of property frontage along right-of-way where improvements were installed), Number of units, Square footage, The zone and termini method (Reference RCW 35.44.030 for definition of this method), or Other recognized methods reasonably calculated to equitably allocate the assessment. In accordance with PMC Section 14.25.030, the developer (Empire Bros) proposed the front footage method. City staff reviewed this proposal and found that other latecomer agreements executed in Pasco with similar context also used the front footage method. A notice containing the preliminary assessment reimbursement area and the preliminary assessment was created by City staff and mailed to the affected property owners (see Exhibit B). The staff of B4 Development and Consulting (B4), on behalf of some of the affected property owners, requested a hearing be held to contest the preliminary assessment reimbursement area and the preliminary assessment (see Exhibit C) in accordance with the procedures described in PMC Section 14.25.050. V.DISCUSSION: During coordination with a representative of some of the property regarding the original preliminary assessment calculations, it was brought to the attention of City staff that there was a mistake in the City's original preliminary assessment. The developer's parcel was omitted from the proportionate share calculation, which incorrectly reallocated the developer's costs to adjacent property owners. Page 52 of 273 City staff corrected the accidental miscalculation, and identified and corrected other discrepancies in lot frontage. City staff coordinated with the representative of the property owners who requested a hearing and established a tentative hearing date of July 17, 2023. June 27, 2023: City staff sent notices informing affected property owners of the hearing to establish the preliminary assessment reimbursement area and the preliminary assessment in accordance with the requirements of PMC 14.25.050 (see Exhibit D). June 29, 2023: City staff emailed an updated preliminary assessment to a representative of some of the property owners for review and comment so that any discrepancies could be identified and addressed prior to the hearing. A copy of these calculations is provided in Exhibit F. June 29, 2023: City staff received an email from a representative of some of the property owners who requested the hearing that confirmed that all necessary information had been provided by the City to facilitate preparation for the hearing scheduled for July 17th (see Exhibit G). July 10th, 2023: City staff mailed a notice to each of the affected property owners containing the updated calculation so that property owners could review the information prior to the hearing (see Exhibit E). As of the date when this agenda report was finalized (July 14th, 2023), the City has not received comments about the updated preliminary assessment from any of the property owners or their representatives. July 13, 2023: City staff received an email from a representative of some of the property owners requesting that the hearing which had been scheduled for July 17th be postponed, as they wanted additional information. City staff evaluated this request and determined that the meeting needed to be held as scheduled on July 17th. There was not adequate time before the meeting to provide notice of cancellation that met the required method. Additionally, the subject of this hearing is the preliminary assessment reimbursement area and the preliminary assessment, and Council's responsibility is to make a determination on this specific matter. The information request was evaluated by City staff and determined to be outside the scope of this hearing, so the hearing can proceed as scheduled. Based on PMC Section 14.25.050, City Council is the final authority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area. The subject of this quasi- judicial hearing is that topic alone. A representative of some of the property owners has indicated that they intend to challenge the overall application of the Page 53 of 273 latecomer to his client's properties. This matter is being coordinated through the City's legal counsel, and is a separate subject from this quasi-judicial hearing that has scope defined by PMC Section 14.25.050 as being for the purpose of establishing the assessment reimbursement area and the assessment for each property within the assessment reimbursement area. Staff Recommendation: Staff recommends Council make a motion on July 17, 2023 to approve the corrected reimbursement area and proportionate share calculation prepared by City Staff which is attached as Exhibit A. Page 54 of 273 Exhibit A Page 55 of 273 Improvement8" SewerTotal Estimated Cost of Improvement$205,920.00Parcel #, Owner Parcel Frontage [FT]Original Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Original Cost [%]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)Original Allocation of Cost [$]Difference in cost [$]113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.670.0033.3596%0.0000%$68,694.09$0.00($68,694.09)113884012, BEULAH HENRY 60.060.01.0892%2.0318%$2,242.88$4,183.88$1,941.00113884058, RALPH E & CHERYL BROETJE 200.0200.03.6306%6.7728%$7,476.13$13,946.55$6,470.42113883022, RALPH E & CHERYL BROETJE 769.0299.013.9598%10.1253%$28,746.02$20,850.02($7,896.00)113882103, EMPIRE BROS CONSTRUCTION, LLC 318.0118.05.7727%3.9959%$11,887.14$8,228.36($3,658.78)113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.0118.02.1421%3.9959%$4,411.01$8,228.36$3,817.35113881024, BROETJE ORCHARDS LLC 236.0236.04.2842%7.9919%$8,822.02$16,456.92$7,634.90113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.0862.016.5194%29.1907%$34,016.75$60,109.49$26,092.74113882112, EUSTOLIA T GONZALEZ (ETAL) 200.0200.03.6306%6.7728%$7,476.13$13,946.55$6,470.42113882041, JUBILEE FOUNDATION 400.0400.07.2613%13.5455%$14,952.47$27,892.89$12,940.42113883031, RALPH E & CHERYL BROETJE 410.0410.07.4428%13.8842%$15,326.21$28,590.34$13,264.13113883040, RALPH E & CHERYL BROETJE 50.050.00.9077%1.6932%$1,869.14$3,486.64$1,617.50TOTALS 5508.672953.0100.0000%100%$205,919.99$205,920.00$0.01Improvement8" WaterTotal Estimated Cost of Improvement$239,016.00Parcel #, Owner Parcel Frontage [FT]Original Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Original Cost [%]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)Original Allocation of Cost [$]Difference in cost [$]113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.670.0048.6327%0.0000%$116,239.93$0.00($116,239.93)113884012, BEULAH HENRY 60.0060.001.5879%3.1696%$3,795.34$7,575.85$3,780.51113884058, RALPH E & CHERYL BROETJE 200.00200.005.2929%10.5652%$12,650.88$25,252.52$12,601.64113883022, RALPH E & CHERYL BROETJE 299.00299.007.9128%15.7950%$18,912.86$37,752.58$18,839.72113882103, EMPIRE BROS CONSTRUCTION, LLC 118.00118.003.1228%6.2335%$7,463.99$14,899.06$7,435.07113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.00118.003.1228%6.2335%$7,463.99$14,899.06$7,435.07113881024, BROETJE ORCHARDS LLC 236.00236.006.2456%12.4670%$14,927.98$29,798.12$14,870.14113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.00862.0024.0825%45.5362%$57,561.03$108,838.80$51,277.77TOTALS 3778.671893.00100.0000%100.0000%$239,016.00$239,015.99($0.01)ImprovementStreet ImprovementsTotal Estimated Cost of Improvement$250,785.00Parcel #, Owner Parcel Frontage [FT]Original Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Original Cost [%]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)Original Allocation of Cost [$]Difference in cost [$]113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.670.0048.6327%0.0000%$121,963.52$0.00($121,963.52)113884012, BEULAH HENRY 60.0060.001.5879%3.1696%$3,982.22$7,948.88$3,966.66113884058, RALPH E & CHERYL BROETJE 200.00200.005.2929%10.5652%$13,273.80$26,495.94$13,222.14113883022, RALPH E & CHERYL BROETJE 299.00299.007.9128%15.7950%$19,844.12$39,611.49$19,767.37113882103, EMPIRE BROS CONSTRUCTION, LLC 118.00118.003.1228%6.2335%$7,831.51$15,632.68$7,801.17113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.00118.003.1228%6.2335%$7,831.51$15,632.68$7,801.17113881024, BROETJE ORCHARDS LLC 236.00236.006.2456%12.4670%$15,663.03$31,265.37$15,602.34113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.00862.0024.0825%45.5362%$60,395.30$114,197.96$53,802.66TOTALS 3778.671893.00100.0000%100.0000%$250,785.01$250,785.00($0.01)Benefit AreaBenefit AreaBenefit AreaEmpire EstatesEmpire EstatesEmpire EstatesEmpire Estates Latecomer's AgreementEmpire Estates Latecomer's AgreementEmpire Estates Latecomer's AgreementPage 56 of 273 Exhibit B Page 57 of 273 i'|"fpPa<sco,j‘” March 15,2023 PUBLIC WORKS DEPARTMENT (509)543-5738 PO Box 293/525 North 3"‘Ave.Pasco,WA 99301/ Jubilee Foundation 3713 E A ST Pasco,WA 99301 RE:Preliminary Determination Notice for 113-882-041 Dear Jubilee Foundation This letter is to provide explanation of the accompanying Notice of Additional Water,Sewer,Irrigation &Street Facility Tap or Connection Charge,providing notice to you that the City hasdeterminedparcel113-882-141 to be a part of the preliminary assessment reimbursementareaconsistingofoneormorepropertiesthatbene?t from the construction of Water,Sewer,Irrigation andStreetImprovementsinthenear?iture by a neighboringparcel. Pursuant to the provisions of the Pasco Municipal Code,the City has made the preliminarydeterminationthatyourparcelwoulddirectlybene?t from the construction of the SewerImprovementsbyreceivingaccesstoCityofPascofacilities.Please see the enclosedNotice for furtherdetails. If you have any questions or concerns,please feel free to contact Kurtis Schliebe,EngineeringTechnicianIIIat(509)544-4148 or myself at (509)545-3445. Sincerel , Jon Padvorac,PE City Engineer Attachments: Notice’s of Additional Sewer Facility Tap or Connection Charge Map of PreliminaryAssessment Area PMC 14.25.010 SENT VIA CERTIFIED &REGULAR MAIL Page 58 of 273 14.25.010 Purpose. The purpose of this chapter is to provide the conditions and procedures under which developers,includingthe City,who installed qualifying improvements requisite for future development and pursuant to the City's development ordinances and policies,may be partially reimbursed for the expenses of such improvements by noncontributing bene?ted owners of adjacent properties in compliance with Chapters £2 and 35.91 RCW. This chapter is intended to apply to: (1)Street Improvements.Street improvements include all arterial street system improvements which are the result of a City ordinance that requires such improvements as a prerequisite to further property development.Arterial street system improvements constructed in order to comply with the City's subdivision and zoning codes and the City's Comprehensive Plan are hereby declared to be prerequisites to further property development for the purposes of RCW35.72.010. (2)UtilitySystem Improvements.Utilitysystem improvements include all utility system improvements which are the result of a City ordinance that requires such improvements as a prerequisite to further property development. Utilitysystem improvements constructed in order to comply with the City's Comprehensive Plan,development regulations,and permitting requirements are hereby declared to be prerequisites to further property development within the City,or as provided in RCW 35.91.020.[0rd.4156,2014;0rd.3709 §1,2004;Code 1970 §14.12.010.] The Pasco Municipal Code is current through Ordinance 4632,passed December 5,2022. Disclaimer:The City Clerk's of?ce has the of?cial version of the Pasco Municipal Code.Users should contact the City Clerk's of?ce for ordinances passed subsequent to the ordinance cited above. i W ''www -w v City Telephone:(509)544-3080 Qggg Publishing Company The Pasco MunicipalCode is current through Ordinance 4632,passed December 5,2022. 14.25.010 Purpose |Pasco Municipal Code Page 1 of Page 59 of 273 FILED FOR RECORD AT REQUESTOF: City of Pasco,Washington WHEN RECORDED RETURN TO: City of Pasco,Washington 525 North 3rd Pasco WA 99301 Tax Parcel No.113-882-041 NOTICE OF ADDITIONAL SEWER FACILITY TAP OR CONNECTION CHARGE NOTICE IS HEREBY GIVEN,pursuant to RCW 65.08.170 and PMC 14.25,the City of Pasco has levied,or intends to levy a charge upon that real property identi?ed in an "Assessment ReimbursementArea"pursuant to the terms of a Developer Reimbursement Agreement entered into pursuant to RCW 35.91.020 and PMC 14.25,which authorizes a charge against the owners of the property within the Assessment ReimbursementArea as a condition for the right to connect to a Sewer facility structured under the terms of the Agreement. The “Total Assessment”is de?ned as the cost of the project attributabl etotheentireAssessmentReimbursementArea.The percentage of this Total Assessment that has been predetermined to be attributed to your property,Parcel No.113-882-041,is 13.5%,as your property is one of eleven (11)Parcels within the Assessment ReimbursementArea.The Total Assessment is projected to be $205,920.00.Accordingly,the individual Assessment that is assessed to your parcel is projected to $27,892.99.This is only an estimated ?gure.The ?nal Assessment will depend on the actual costs of the project.This amount must be paid as a condition for the right to connect to the subject facility and may be subject to segregation as provided for in the PMC and/or State statute. Per PMC 14.25.050(2),any property owner within the Assessment Reimbursement Area may,in writing,within twenty (20)days of the date of mailing of this notice,request a hearing to be held before the City Council to contest the Assessment Reimbursement Area and/or the Assessment.Notice of any requested hearing shall be given to all property owners within the Assessment ReimbursementArea and the hearing shall be conductedas soon as is reasonably practical.The City Council is the ?nal authority to establish the Assessment Reimbursement Area and the individual Assessment for each property within the Assessment Reimbursement Area.Per PMC 14.25.050(3), should no hearing be requested,the Assessment ReimbursementArea,Total Notice of Additional Sewer Facility Tap or Connection Charges 1 Page 60 of 273 NDATEDthisdayof Assessment,and individual Assessments determined by the Public Works department shall be ?nal. The Assessment Area and its boundaries are designated upon the map attached hereto as Exhibit A. WM STATE OF WASHINGTON ) :ss County of Franklin ) On this day personally appeared before me STEVE M.WORLEY, Director,City of Pasco Public Works/EngineeringDepartment,described in and who executed the within and foregoing instrument,and acknowledged that he signed the same as his free and voluntary act and deed for the uses and purposes therein mentioned. GIVEN under my hand and of?cial seal this __day of , 2023. _N 'nt Name S :00‘%:s'l'Ili’IlI'gctonNotaryPublic in and for the State of Washington JANETIEESALAZARROMERO Residing at CEN ''' MY COMM!§§ll)l\?l58):(2l”lRESMyCommlsslon Expires \I1‘; Notice of Additional Sewer Facility Tap or Connection Charges -2 CITY OF PASCO Steve M.orley,Director Public Works/ 2023. Page 61 of 273 Ounmi ,___..--—__?H>ZOE“M2:...z.m~>m..._<smmc?..._m:oE5.5.in 2.5.5.3 .m>E_..\_um...?:<z m?zoownsamz:5 _.._mmmz_.:m=_mmz:Ezmm 262.93.»zm:?m..m¢?mcEuzmmE.Bd_.ma _?J1.I&_ ___._:m-u,- 7-77 ;L_________ 3...;n_~=.§=+m ..w «E NEE—Bm“.E Page 62 of 273 Exhibit C Page 63 of 273 RE:Request for hearing for Tax Parcel No.113-881-024 B4 DEVELOPMENT&CONSULTING,LL C(OWNERSREPRESENTATIVE) Dear City of Pasco, In a certified letter mailed March 15”’,2023,landowners Ralph E.and Cheryl Broetje received notice,regarding Tax Parcel No.113-881-024,of three additional facility tap or connection charges.The levy is addressing street,sewer, and water assessments the City intends to levy upon the real property described. Pursuant to PMC 14.25.05O -we respectfully request a hearing before the City Council to contest the assessment and/or assessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date of mailing the notice,request a hearing to be held beforethe City Council to contest the preliminary assessment reimbursement area and preliminary assessment.Notice of such hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the finalauthority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, Ralph E.&Cheryl Broetje 716 W.Sunset Dr. Burbank,WA 99323-9685 OWNER Stephen Bauman numb am Can March 30”’,2023 City of Pasco,Washington 525 North 3"‘ Pasco,WA 99301 Development and Consultin Page 64 of 273 WT ~~mtaW ‘in RE:Request for hearing for Tax Parcel No.113-882-041 Dear City of Pasco, According to the city a certified letter was mailed March 15"’,2023 to landowners Ralph E.and Cheryl Broetje regarding Tax Parcel No.113-882-O41,of additional facility tap or connection charges.The levy is addressing assessments the City intends to levy upon the real property described. Pursuant to PMC 14.25.05O -we respectfully request "a hearing before the City Council to contest the assessment and/or assessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date of mailing the notice,request a hearing to be held beforethe City Councilto contest the preliminary assessment reimbursement area and preliminary assessment.Notice of such hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the final authority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, B4 DEVELOPMENT8:CONSULTING,LL C(OWNERS REPRESENTATIVE) Ralph E.&Cheryl Broetje 716 W.Sunset Dr. Burbank,WA 99323-9685 OWNER Stephen Bauman "- March 30”’,2023 City of Pasco,Washington 525 North 3'°' Pasco,WA 99301 Developn ent and Consultm Page 65 of 273 nvelope ID:CC092596-032F-4A02-9D2A—C719B643478E Developmentand Consultin RE:Request for hearing for Tax Parcel No.113-882-112 B4 DEVELOPMENT&CONSULTING,LL C .¢(OWNERSREPRESENTATIVE) Dear City of Pasco, In a certified letter mailed March 15”’,2023,landowner Eustolia Gonzalez received notice,regarding Tax Parcel No. 113-882-112,of additional facility tap or connection charges.The levy is addressing street,sewer,and water assessments the City intends to levy upon the real property described. Pursuant to PMC 14.25.050 -we respectfully request a hearing before the City Council to contest the assessment and/or assessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date of mailing the notice,request a hearing to be held beforethe City Council to contest the preliminary assessment reimbursement area and preliminary assessment.Notice ofsuch hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the final authority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, 3/30/2023 Stephen Bauman Z-l°l«a0Lv°" 3/30/2023 OWNERF, March 29”’,2023 City of Pasco,Washington 525 North 3"‘ Pasco,WA 99301 Docusign E Page 66 of 273 "mg Developmentand ConsultmJarentHCmsultm RE:Request for hearing for Tax Parcel No.113-883-022 Dear City of Pasco, ln a certified letter mailed March 15"‘,2023,landowners Ralph E.and Cheryl Broetje received notice,regarding Tax Parcel No.113-883-O22,of three additional facility tap or connection charges.The levy is addressing street,sewer, and water assessments the City intends to levy upon the real property described. Pursuant to PMC 14.25.05O -we respectfully request a hearing before the City Council to contest the assessment and/or assessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date ofmailing the notice,request a hearing to be held beforethe City Council to contest the ‘preliminary assessment reimbursement area and preliminary assessment.Notice ofsuch hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the ?nal authority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, Ralph E.&Cheryl Broetje 716 W.Sunset Dr. Burbank,WA 99323-9685 Stephen Bauman B4 DEVELOPMENT8:CONSULTING,LL C(OW ERS REPRESEN ATIVE) March 30"’,2023 City of Pasco,Washington 525 North 3'“ Pasco,WA 99301 Page 67 of 273 [3 E37: City of Pasco,Washington 525 North 3“ Pasco,WA 99301 T mi:no}? RE:Request for hearing for Tax Parcel No.113-883-031 B4 DEVELOPMENT8:CONSULTING,LL C(OWNERSREPRESENTATIVE) Dear City of Pasco, In a certified letter mailed March 15"’,2023,landowners Ralph E.and Cheryl Broetje received notice,regarding Tax Parcel No.113-883-031,of additional sewer facility tap or connection charges.The levy is addressing additional sewer facility tap or connection charge assessments the City intends to levy upon the real property described. Pursuant to PMC 14.25.050 -we respectfully request a hearing before the City Council to contest the assessment and/or assessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date of mailing the notice,request a hearing to be held beforethe City Council to contest the preliminary assessment reimbursement area and preliminary assessment.Notice ofsuch hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the finalauthority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, Stephen Bauman '7 ‘I’N Ralph E.&Cheryl Broetje 716 W.Sunset Dr. Burbank,WA 99323-9685 OWNER March 30”’,2023 Develo ment and C nsultin Page 68 of 273 E3: City of Pasco,Washington 525 North 3“ Pasco,WA 99301 Development and Consultin RE:Request for hearing for Tax Parcel No.113-883-040 B4 DEVELOPMENT8:CONSULTING,LL C(OWNERSREPRE TIVE) Dear City of Pasco, In a certified letter mailed March 15"’,2023,landowners Ralph E.and Cheryl Broetje received notice,regarding Tax Parcel No.113-883-040,of additional sewer facility tap or connection charges.The levy is addressing additional sewer facility tap or connection charge assessments the City intends to levy upon the real property described. Pursuant to PMC 14.25.050 -we respectfully request a hearing before the City Council to contest the assessment and/orassessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date ofmailing the notice,request a hearing to be held beforethe City Council to contest the preliminary assessment reimbursement area and preliminary assessment.Notice ofsuch hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the finalauthority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, Ralph E.&Cheryl Broetje 716 W.Sunset Dr. Burbank,WA 99323-9685 OWNE‘s/ Stephen Bauman L-..> March 30"’,2023 Page 69 of 273 H874‘ City of Pasco,Washington 525 North 3"’ Pasco,WA 99301 11 i3pweam.r1MuI' RE:Request for hearing for Tax Parcel No.113-884-058 Dear City of Pasco, In a certified letter mailed March 15”’,2023,landowners Ralph E.and Cheryl Broetje received notice,regarding Tax Parcel No.113-884-058,of three additional facility tap or connection charges.The levy is addressing street,sewer, and water assessments the City intends to levy upon the real property described. Pursuant to PMC 1425.050 —we respectfully request a hearing before the City Council to contest the assessment and/or assessment reimbursement area. PMC 14.25.050(2),”The developer or any property owner within the preliminary assessment reimbursement area may,in writing within 20 days of the date of mailing the notice,request a hearing to be held beforethe City Councilto contest the preliminary assessment reimbursement area and preliminary assessment.Notice ofsuch hearing shall be given to all property owners within the preliminary assessment reimbursement area and the hearing shall be conducted as soon as is reasonably practical.The City Council is the final authority to establish the assessment reimbursement area and the assessment for each property within the assessment reimbursement area.” Sincerely, B4 DEVELOPMENT8:CONSULTING,LL C(OW ERS RFPRES IVE) Ralph E.&Cheryl Broetje 716 W.Sunset Dr. Burbank,WA 99323-9685 OW E Stephen Bauman ~/ March 30”’,2023 Development and Consultm Page 70 of 273 Exhibit D Page 71 of 273 (‘OMMIJNITY AND ECC()N()Ml('l)F,\V'El.()l’Ml~}NT F_'.NGlNEF.RlNG -l)EVl<'.L()PME.\'F!5(W)545-34-1| l’()Rm’“9‘s7.'25 Nm'I|1 V \\e.l’:‘1<co.\\/\‘.’Q.W)l/WWW-P&iScn— June 27,2023 SENT VIA CERTIFIED &REGULAR MAIL 1wm «u v~SI\~’..1x~';J1\‘I'J:"YAND J1.CCQ1*Nu;\4]fC :11 VELO].*I\~’LilE1\'T ENGINEERING -D.TlVELO'T?I‘\4[]E1\‘T (S09 S45-3«@<.Z 7»'30 Box 993/525 North 3’dAve.Pasco_.,WA.993 I/w‘ww.pasco wa.g0 ~' L"J RE:Hearing Notice for Parcel No.113883040 Dear Broetje,Ralph E &Cheryl: You recently received a Preliminary Determination Notice regarding a Preliminary Assessment for Street and/or Utility System Improvements.Based on PMC l4.25.050(2),the preliminary determination has been contested and a Hearing has been scheduled to establish the preliminary assessment reimbursement area and preliminary assessment.Currently the Hearing is scheduled for Monday,July 17“‘,2023,at 7:00pm. The City Council will have ?nal authority to establish the Assessment Reimbursement Area and the Assessment for each property within the Assessment Reimbursement Area. If you have any questions,feel free to contact me via e—mailat PadvoracJ@Pasco-WA.gov cc:File Jon advorac,P.E City Engineer Sincerely, Broetje,Ralph E &Cheryl 716 W Sunset DR Burbank,WA 99323-9685 Page 72 of 273 Exhibit E Page 73 of 273 Community & Economic Development Department PO Box 293, 525 N 3rd Ave, Pasco, WA 99301 P: 509.545.3441 / F: 509.545.3499 July 10, 2023 SENT VIA CERTIFIED & REGULAR MAIL 7005 0390 0002 6931 9978 Broetje, Ralph E & Cheryl 716 W Sunset DR Burbank, WA 99323-9685 RE: Revised Preliminary Determination Notice for Parcel No. 113883022 Dear Broetje, Ralph E & Cheryl: In March of 2023, you received a Notice of an additional Water, Sewer, Irrigation & Street Facility Tap or Connection Charge. Based on PMC 14.25.050(2), the City received written notice within 20 days of mailing the notice that a hearing was requested to contest the preliminary assessment reimbursement area and preliminary assessment calculation. During review of the preliminary assessment calculation, an error was discovered which has since been corrected. A copy of the Revised Preliminary Assessment Calculation is attached for your records. Staff will be providing this Revised Preliminary Assessment Calculation to City Council for their consideration. City Council will determine the Preliminary Assessment Reimbursement Area and Preliminary Assessment during the upcoming hearing. If you have any questions or concerns, please feel free to email me at PadvoracJ@Pasco-WA.gov. Sincerely, Jon Padvorac City Engineer Attachments: Map of Preliminary Assessment Area REVISED Preliminary Assessment Calculations Page 74 of 273 Page 75 of 273 Page 76 of 273 Page 77 of 273 Improvement8" SewerTotal Estimate$205,920.00Parcel #, Owner Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER)1837.67 33.3596% $68,694.09113884012, BEULAH HENRY60.0 1.0892% $2,242.88113884058, RALPH E & CHERYL BROETJE 200.0 3.6306% $7,476.13113883022, RALPH E & CHERYL BROETJE 769.0 13.9598% $28,746.02113882103, EMPIRE BROS CONSTRUCTION, LLC318.0 5.7727% $11,887.14113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.0 2.1421% $4,411.01113881024, BROETJE ORCHARDS LLC236.0 4.2842% $8,822.02113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.0 16.5194% $34,016.75113882112, EUSTOLIA T GONZALEZ (ETAL) 200.0 3.6306% $7,476.13113882041, JUBILEE FOUNDATION400.0 7.2613% $14,952.47113883031, RALPH E & CHERYL BROETJE 410.0 7.4428% $15,326.21113883040, RALPH E & CHERYL BROETJE 50.0 0.9077% $1,869.14TOTALS 5508.67 100.0000% $205,919.99Empire EstatesEmpire Estates Latecomer's AgreementBenefit AreaPage 78 of 273 Improvement8" WaterTotal Estimated Cost of Improvement$239,016.00Parcel #, Owner Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.67 48.6327% $116,239.93113884012, BEULAH HENRY 60.00 1.5879% $3,795.34113884058, RALPH E & CHERYL BROETJE 200.00 5.2929% $12,650.88113883022, RALPH E & CHERYL BROETJE 299.00 7.9128% $18,912.86113882103, EMPIRE BROS CONSTRUCTION, LLC 118.00 3.1228% $7,463.99113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.00 3.1228% $7,463.99113881024, BROETJE ORCHARDS LLC 236.00 6.2456% $14,927.98113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.00 24.0825% $57,561.03TOTALS 3778.67 100.0000% $239,016.00Empire EstatesEmpire Estates Latecomer's AgreementBenefit AreaPage 79 of 273 ImprovementStreet ImprovementsTotal Estimated Cost of Improvement$250,785.00Parcel #, Owner Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.67 48.6327% $121,963.52113884012, BEULAH HENRY 60.00 1.5879% $3,982.22113884058, RALPH E & CHERYL BROETJE 200.00 5.2929% $13,273.80113883022, RALPH E & CHERYL BROETJE 299.00 7.9128% $19,844.12113882103, EMPIRE BROS CONSTRUCTION, LLC118.00 3.1228% $7,831.51113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.00 3.1228% $7,831.51113881024, BROETJE ORCHARDS LLC 236.00 6.2456% $15,663.03113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.00 24.0825% $60,395.30TOTALS 3778.67 100.0000% $250,785.01Empire EstatesEmpire Estates Latecomer's AgreementBenefit AreaPage 80 of 273 Exhibit F Page 81 of 273 Improvement8" SewerTotal Estimate$205,920.00Parcel #, Owner Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER)1837.67 33.3596% $68,694.09113884012, BEULAH HENRY60.0 1.0892% $2,242.88113884058, RALPH E & CHERYL BROETJE 200.0 3.6306% $7,476.13113883022, RALPH E & CHERYL BROETJE 769.0 13.9598% $28,746.02113882103, EMPIRE BROS CONSTRUCTION, LLC318.0 5.7727% $11,887.14113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.0 2.1421% $4,411.01113881024, BROETJE ORCHARDS LLC236.0 4.2842% $8,822.02113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.0 16.5194% $34,016.75113882112, EUSTOLIA T GONZALEZ (ETAL) 200.0 3.6306% $7,476.13113882041, JUBILEE FOUNDATION400.0 7.2613% $14,952.47113883031, RALPH E & CHERYL BROETJE 410.0 7.4428% $15,326.21113883040, RALPH E & CHERYL BROETJE 50.0 0.9077% $1,869.14TOTALS 5508.67 100.0000% $205,919.99Empire EstatesEmpire Estates Latecomer's AgreementBenefit AreaPage 82 of 273 ImprovementStreet ImprovementsTotal Estimated Cost of Improvement$250,785.00Parcel #, Owner Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.67 48.6327% $121,963.52113884012, BEULAH HENRY 60.00 1.5879% $3,982.22113884058, RALPH E & CHERYL BROETJE 200.00 5.2929% $13,273.80113883022, RALPH E & CHERYL BROETJE 299.00 7.9128% $19,844.12113882103, EMPIRE BROS CONSTRUCTION, LLC118.00 3.1228% $7,831.51113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.00 3.1228% $7,831.51113881024, BROETJE ORCHARDS LLC 236.00 6.2456% $15,663.03113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.00 24.0825% $60,395.30TOTALS 3778.67 100.0000% $250,785.01Empire EstatesEmpire Estates Latecomer's AgreementBenefit AreaPage 83 of 273 Improvement8" WaterTotal Estimated Cost of Improvement$239,016.00Parcel #, Owner Parcel Frontage [FT]Allocation of Cost [%] = [(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]Allocation of Cost [$] = (Allocation of Cost [%])*(Total Estimate)113883014 (RETIRED), EMPIRE BROS CONSTRUCTION, LLC (DEVELOPER) 1837.67 48.6327% $116,239.93113884012, BEULAH HENRY 60.00 1.5879% $3,795.34113884058, RALPH E & CHERYL BROETJE 200.00 5.2929% $12,650.88113883022, RALPH E & CHERYL BROETJE 299.00 7.9128% $18,912.86113882103, EMPIRE BROS CONSTRUCTION, LLC 118.00 3.1228% $7,463.99113882096, JOSE GONZALEZ ALMARAZ (ETAL) 118.00 3.1228% $7,463.99113881024, BROETJE ORCHARDS LLC 236.00 6.2456% $14,927.98113870143, MENDOZA INVESTMENT PROPERTIES LLC 910.00 24.0825% $57,561.03TOTALS 3778.67 100.0000% $239,016.00Empire EstatesEmpire Estates Latecomer's AgreementBenefit AreaPage 84 of 273 Page 85 of 273 Page 86 of 273 Page 87 of 273 Page 88 of 273 Page 89 of 273 Page 90 of 273 5/15/23, 2:01 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397107&parcelNumber=113870143&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113870143 Owner Name:MENDOZA INVESTMENT PROPERTIES LLC DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:4114 FINNHORSE LN Map Number:093028-00-000000-000-0000 City, State:PASCO WA Status:Zip:99301-8317 Description:S2NE4SE4 28-9-30, LESS EASE Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP COM AC Acres 20.00000000 Irregular 20.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 91 of 273 5/15/23, 1:52 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397115&parcelNumber=113881024&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113881024 Owner Name:BROETJE ORCHARDS LLC DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:3525 E A ST Map Number:093028-43-WASHIN-005-0000 City, State:PASCO WA Status:Zip:99301-5252 Description:WASHINGTON ADD ALL BLK 5 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP RES AC Acres 2.16000000 800.00 118.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 92 of 273 5/15/23, 1:51 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397117&parcelNumber=113882041&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113882041 Owner Name:JUBILEE FOUNDATION DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:3713 E A ST Map Number:093028-43-WASHIN-011-0010 City, State:PASCO WA Status:Zip:99301 Description:W2 OF LOTS 1 THRU 16, BLOCK 11, WASHINGTON ADD Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth LWR DUP CRV Square Feet 23600.00000000 Irregular 400.00 59.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 93 of 273 5/15/23, 2:01 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397121&parcelNumber=113882096&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113882096 Owner Name:ALMARAZ (ETAL), JOSE GONZALEZ DOR Code:91 - Undeveloped - Land Address1:ALMARAZ, ISIDORO GONZALEZ Situs:Address2:7365 N GLADE RD Map Number:093028-43-WASHIN-006-0250 City, State:PASCO WA Status:Zip:99301-8829 Description:WASHINGTON ADD LOTS 25 TO 32, BLK 6 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP RES AC Acres 0.54000000 200.00 118.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 94 of 273 5/15/23, 1:52 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397122&parcelNumber=113882103&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113882103 Owner Name:EMPIRE BROS CONSTRUCTION, LLC DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:PO BOX 5494 Map Number:093028-43-WASHIN-006-0010 City, State:KENNEWICK WA Status:Zip:99336-0494 Description:WASHINGTON LOTS 1 THRU 8, BLK 6 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP RES AC Acres 0.54000000 200.00 118.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 95 of 273 5/15/23, 2:01 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397123&parcelNumber=113882112&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113882112 Owner Name:GONZALEZ (ETAL), EUSTOLIA T DOR Code:91 - Undeveloped - Land Address1:OLIVERA, JOSE Situs:Address2:4112 W MARGARET ST Map Number:093028-43-WASHIN-006-0090 City, State:PASCO WA Status:Zip:99301-2918 Description:WASHINGTON LOTS 9 THRU 16, BLK 6 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP RES AC Acres 0.54000000 Irregular 200.00 118.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 96 of 273 5/15/23, 1:51 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397125&parcelNumber=113883022&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113883022 Owner Name:BROETJE, RALPH E & CHERYL DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:716 W SUNSET DR Map Number:093028-43-WASHIN-007-000 City, State:BURBANK WA Status:Zip:99323-9685 Description:WASHINGTON ADD ALL BLK 7 TOG WITH VACATED STREETS AND ALLEYS ADJ PER ORD#3996 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP COM AC Acres 3.22000000 Irregular 299.00 470.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 97 of 273 5/15/23, 2:02 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397126&parcelNumber=113883031&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113883031 Owner Name:BROETJE, RALPH E & CHERYL DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:716 W SUNSET DR Map Number:093028-43-WASHIN-010-0010 City, State:BURBANK WA Status:Zip:99323-9685 Description:LOTS 1 THRU 24 & LOTS 27 THRU 32, BLOCK 10, WASHINGTON ADD TOGETHER WITH VACATED STREETS AND ALLEYS ADJ PER ORD-3996 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP COM AC Acres 3.01000000 Irregular Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 98 of 273 5/15/23, 1:51 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397127&parcelNumber=113883040&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113883040 Owner Name:BROETJE, RALPH E & CHERYL DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:716 W SUNSET DR Map Number:093028-43-WASHIN-010-0250 City, State:BURBANK WA Status:Zip:99323-9685 Description:LOTS 25 & 26, BLOCK 10, WASHINGTON ADD TOGETHER WITH VACATED STREETS AND ALLEYS ADJ PER ORD-3996 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP COM SF Square Feet 6700.00000000 Rectangular 50.00 134.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 99 of 273 5/15/23, 1:50 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397128&parcelNumber=113884012&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113884012 Owner Name:HENRY, BEULAH DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:207 S 8TH AVE APT 6 Map Number:093028-43-WASHIN-001-0200 City, State:YAKIMA WA Status:Zip:98902-3358 Description:WASHINGTON ADD LOTS 20 TO 22 BLK 1 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP RES SF Square Feet 7080.00000000 60.00 118.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 100 of 273 5/15/23, 1:51 PM TerraScan TaxSifter - Franklin County Washington terra.co.franklin.wa.us/TaxSifter/AppraisalDetails.aspx?keyId=1397132&parcelNumber=113884058&typeID=1 1/1 WASHINGTON TAXSIFTER SIMPLE SEARCH SALES SEARCH REETSIFTER COUNTY HOME PAGE CONTACT DISCLAIMER PAYMENT CART(0) TX_RollYear_Search: 2023 FRANKLIN COUNTY John A. Rosenau Franklin County Assessor 1016 N. 4th Ave Bldg. A104 Pasco, WA 99301 Assessor Treasurer Appraisal MapSifter Parcel Parcel#:113884058 Owner Name:BROETJE, RALPH E & CHERYL DOR Code:91 - Undeveloped - Land Address1: Situs:Address2:716 W SUNSET DR Map Number:093028-43-WASHIN-001-0120 City, State:BURBANK WA Status:Zip:99323-9685 Description:WASHINGTON ADD LOTS 12 TO 19 BLK 1 Comment:TAX DISTRICT CHANGED FOR 2015 FROM 102 TO 101 Land Land Land Code Unit Type Units Land Shape Width Depth DVLP RES AC Acres 0.54000000 200.00 118.00 Property Images No images found. 1.0.8368.16162 Data current as of: 5/12/2023 4:02 PM Page 101 of 273 Exhibit G Page 102 of 273 1 Jon Padvorac From:John Scheline <John@b4land.com> Sent:Thursday, June 29, 2023 2:09 PM To:Jon Padvorac; Adam Lincoln; Jacob Gonzalez Cc:Steve Bauman; Ann Gilbert; Kurtis Schliebe; John@JFEngineering.pro Subject:RE: Empire Estates Latecomer's Agreement [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Jon, I have a clear understanding of the purpose of the upcoming hearing and have thoroughly familiarized myself with PMC 14.25.050. I acknowledge the city’s responsibility and recognize the importance of conducting the hearing within a reasonable and practical timeframe. When we initially raised our concerns and contested the preliminary assessment our focus was primarily on PMC 14.25.050 and the bloated financial assessment provided to our client. As a result of our questions, we identified a savings of $142,208.52 the city would have charged our client without a contested hearing. This substantial savings and the city’s response perfectly illustrate the intended objective of PMC 14.25.050, and, as a result, our research has brought to light a significant set of issues in the process. As we have delved deeper into the matter our objective has expanded beyond simply contesting the “preliminary reimbursement area and preliminary assessment.” We are questioning the overall legitimacy of the ENTIRE latecomer’s agreement due to the failure of city staff to adhere to proper policies and procedures. There are checks and balances in the government structure and so I am sure you have researched the procedures and codes to contest the entire agreement. I kindly request the specific Pasco Municipal Codes and supporting documents that outline the procedure for contesting the ENTIRE latecomer’s agreement. Our contention is based on the fact the city staff did not follow the prescribed policies and procedures as outlined in the PMC code. ** Please note I do not require any additional information regarding the stated purpose of the contested hearing scheduled for July 17th. John Scheline Project Manager B4 Development and Consulting CELL: 509.737.7826 From: Jon Padvorac <padvoracj@pasco-wa.gov> Sent: Thursday, June 29, 2023 1:38 PM To: John Scheline <John@b4land.com>; Adam Lincoln <lincolna@pasco-wa.gov>; Jacob Gonzalez <gonzalezjb@pasco- wa.gov> Cc: Steve Bauman <Steve@b4land.com>; Ann Gilbert <Ann@b4land.com>; Kurtis Schliebe <schliebek@pasco-wa.gov>; John@JFEngineering.pro Subject: RE: Empire Estates Latecomer's Agreement John, Page 103 of 273 AGENDA REPORT FOR: City Council July 12, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Steve Worley, Director Public Works SUBJECT: Resolution Nos. 4361 & 4362 -Approval of Temporary and Term Aquatic Lands' Agreements with the Department of Natural Resources for the Waste Water Treatment Plant Outfall Pipe within the Columbia River I. REFERENCE(S): Resolution – Temporary Aquatic Lands Right of Entry No. 23 -104550 and Aquatic Lands Easement No. 51-104551 Resolution – Term Aquatic Lands Outfall Easement No. 51-103464 Vicinity Map II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4361, authorizing the City Manager to execute the temporary Aquatic Lands Right of Entry No. 23-104550 and Aquatic Lands Easement No. 51-104551 easement and temporary right of entry agreements with the State of Washington Department of Natural Resources to facilitate the construction of the new wastewater treatment plant outfall pipe within the Columbia River. -and- MOTION: I move to approve Resolution No. 4362, authorizing the City Manager to execute Aquatic Lands Outfall Easement No. 51-103464 for the 30-year term easement with the State of Washington Department of Natural Resources for the new wastewater treatment plant outfall pipe within the Columbia River. III. FISCAL IMPACT: $3,000.00 fee for Aquatic Lands Right of Entry No. 23 -104550 $1,870.00 fee for Aquatic Lands Easement No. 51 -104551 $1,870.00 fee for Aquatic Lands Outfall Easement No. 51 -103464 Page 104 of 273 Funded by the Wastewater Utility fund (Fund 450). Funds allocated for this project account for these easement costs. IV. HISTORY AND FACTS BRIEF: The Wastewater Treatment Plant Phase 2B construction project is the next phase modifications improvements planned of and existing City's to the municipal wastewater treatment plant (WWTP). Phase 2B will be performed on land and underwater and covers the outfall pipe improvements. Approximately 1,600 linear feet of new 42-inch diameter outfall piping will be built, most of which will be constructed within the Columbia River. This phase also includes removal of the existing 24-inch diameter outfall pipe and associated riverbed restoration. Three (3) agreements are required from the Washington State Department of Natural Resources (DNR) for this project to permit the in-water work. The City has been working with DNR staff in excess of a year to provide the required plans, specifications, analyses, and environmental documentation to secure the required easements. V. DISCUSSION: The temporary right of entry and construction easement agreements grant permission with on/underwater the associated access and for activities construction of the WWTP outfall pipe in the Columbia River and encompass approximately 15.5 acres. These agreements will expire upon project completion. The 15-foot wide term easement within the Columbia River is centered along the outfall pipe and encompasses approximately one third acre. The 30 -year term Aquatic Lands Outfall Easement will need to b e periodically reissued but is intended to remain in place for the lifetime of the outfall pipe. Staff recommends approval of the Resolutions authorizing the City Manager to execute the temporary Aquatic Lands Right of Entry No. 23 -104550 & Aquatic Lands Easement No. 51-104551 agreements and the term Aquatic Lands Outfall Easement No. 51-103464 agreement for the Wastewater Treatment Plant Phase 2B Outfall Project. Page 105 of 273 Resolution WWTP-DNR ROE & Easement for PH 2A- 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE THE AQUATIC LANDS RIGHT OF ENTRY NO. 23-104550 AND AQUATIC LANDS EASEMENT NO. 51-104551 WITH THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES FOR THE CONSTRUCTION OF THE WASTEWATER TREATMENT PLANT IMPROVEMENTS PHASE 2B OUTFALL PIPE PROJECT. WHEREAS, the City of Pasco (City) desires to install a new 42-inch diameter wastewater treatment plant outfall pipe within the Columbia River, remove the existing 24-inch diameter outfall pipe, perform associated riverbed restoration, and construct other appurtenances as necessary to complete the project; and WHEREAS, the proposed improvements are partially located within aquatic lands owned by the State of Washington (State); and WHEREAS, the State, acting through the Department of Natural Resources (DNR), requires a right of entry agreement and temporary easement to permit access to State owned aquatic lands within the Columbia River during the construction of said improvements; and WHEREAS, the City applied for a right of entry and temporary easement and received approval from the DNR to construct said improvements; and WHEREAS, the fee associated with Aquatic Lands Right of Entry No. 23-104550 is $3,000.00 and the fee associated with Aquatic Lands Easement No. 51-104551 is $1,870.00; and WHEREAS, the City and its consultants consider this a reasonable value and a prudent use of public resources. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute the Aquatic Lands Right of Entry No. 23-104550 and the Aquatic Lands Easement No. 51-104551 with the State of Washington Department of Natural Resources in substantially the same form as copies attached hereto and incorporated herein by this reference as Exhibit A and Exhibit B; and to make minor substantive changes as necessary to execute the documents. Be It Further Resolved that this Resolution shall take effect and be in full force immediately upon passage by the City Council. Page 106 of 273 Resolution WWTP-DNR ROE & Easement for PH 2A- 2 PASSED by the City Council of the City of Pasco, Washington, on this 17th day of July, 2023. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 107 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 1 of 17 Right of Entry No. 23-104550 AQUATIC LANDS RIGHT OF ENTRY Right of Entry No. 23-104550 THIS RIGHT OF ENTRY is made by and between the STATE OF WASHINGTON, acting through the Department of Natural Resources (“State”), and and CITY OF PASCO, a government agency (“Licensee”). THE Parties agree as follows: SECTION 1 GRANT OF PERMISSION 1.1 Permission. Subject to the terms and conditions set forth below, State grants Licensee a revocable, nonexclusive license to enter upon the real property described in Exhibit A (the “Property”). In this agreement, the term “Right of Entry” means this agreement and the rights granted. By issuance of this Right of Entry, State is conferring the privilege of use of the Property, and State expressly retains exclusive possession of the Property. 1.2 Other Interests and Rights. This Right of Entry is subject to all valid interests of third parties noted in the records of Franklin County, or on file in the Office of the Commissioner of Public Lands, Olympia, Washington. Licensee is responsible for obtaining approvals from other persons, if any, who have an interest in the Property. This Right of Entry is subject to the rights of the public under the Public Trust Doctrine or federal navigation servitude, and treaty rights of Indian Tribes. 1.3 Condition of Property. Licensee has inspected the Property and accepts it in its present condition. State has no obligation to make any repairs, additions, or improvements to the Property. State makes no representation regarding the condition of the Property or the suitability of the Property for Licensee’s intended use. State expressly disclaims any warranty that the Property is suitable for Licensee’s intended use. Page 108 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 2 of 17 Right of Entry No. 23-104550 SECTION 2 USE 2.1 Authorized Activities. Licensee shall enter the Property only for the purpose of conducting the activities described in Exhibit B (the “Activities”) and for no other purpose. Exhibit B also includes details about the Property. Licensee shall not conduct any other activities on the Property without the prior written permission of State. 2.2 Restrictions on Activities. The following limitations and requirements apply to the Property and adjacent state-owned aquatic lands. Licensee’s compliance with the following does not limit Licensee’s liability under any other provision of this Right of Entry. Exhibit B also includes additional obligations and requirements on Licensee. (a) Licensee shall not cause or permit: (1) Damage to land or natural resources, except to the extent expressly permitted in Exhibit B; (2) Waste; or (3) Deposit of material, unless approved by State in writing and except to the extent expressly permitted in Exhibit B. This prohibition includes deposit of fill, rock, earth, ballast, wood waste, refuse, garbage, waste matter, pollutants of any type, or other matter. (b) Nothing in this License shall be interpreted as an authorization to dredge the Property. (c) Licensee shall immediately notify State if Licensee breaches any of the requirements of Paragraph 2.2 or Exhibit B. (d) Licensee shall, at Licensee’s sole expense, be responsible for promptly remedying any damages caused by Licensee, the Activities, or Licensee’s failure to comply with the requirements of Paragraph 2.2 or Exhibit B, except to the extent expressly permitted in Exhibit B. Licensee shall remedy any damages in accordance with a plan approved by State. Nothing in this paragraph shall prevent State from taking steps to remedy any damages caused by Licensee, the Activities, or Licensee’s failure to comply with the requirements of Paragraph 2.2 or Exhibit B. If State takes such remedial actions, upon demand by State, Licensee shall pay all remedial costs, restoration costs, and natural resources damages. 2.3 Conformance with Laws. Licensee shall, at all times, keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding its Activities on the Property. 2.4 Interference with Other Uses. (a) Licensee shall conduct the Activities authorized in this Right of Entry in a manner that minimizes or avoids interference with the rights of State, the public, or others with valid right to use or occupy the Property or surrounding lands and water. Page 109 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 3 of 17 Right of Entry No. 23-104550 (b) Licensee and its agents, contractors, and subcontractors shall provide State with at least two (2) weeks’ notice before commencing any Activities. Licensee shall promptly notify State of any modifications in the schedule. 2.5 Licensee’s Contractors. Acts or omissions of Licensee’s contractors operating under this Right of Entry shall be deemed an act of the Licensee. Restrictions and/or requirements placed on the Licensee herein shall apply equally to Licensee’s contractors. SECTION 3 TERM 3.1 Term Defined. This Right of Entry commences on the 1st day of July, 2022 (“ Commencement Date”), and terminates on the 30th day of June, 2027 (the “Termination Date”), unless terminated sooner under the terms of this Right of Entry. 3.2 End of Term. Upon termination of this Right of Entry and except as otherwise provided in Exhibit B, Licensee shall restore the Property to a condition substantially like its natural state before Licensee’s Activities. Licensee’s restoration shall be in accordance with a plan approved by State. 3.3 Disposition of Personal Property. (a) “Personal Property” means items that can be removed from the Property without (1) injury to the Property, adjacent state-owned aquatic lands, or Improvements, or (2) diminishing the value or utility of the Property, adjacent state-owned aquatic lands, or Improvements. (b) Licensee retains ownership of Personal Property unless Licensee and State agree otherwise in writing. (c) Licensee shall remove Personal Property from the Property by the termination of this Right of Entry. Licensee is liable for damage to the Property and Improvements resulting from removal of Personal Property. (d) State may sell or dispose of all Personal Property left on the Property after the termination of this Right of Entry. (1) If State conducts a sale of Personal Property, State shall first apply proceeds to State’s costs of removing the Personal Property, State’s costs in conducting the sale, and any other payment due from Licensee to State. State shall pay the remainder, if any, to the Licensee. Licensee shall be liable for any costs of removing the Personal Property and any costs of conducting the sale that exceed the proceeds received by State. (2) If State disposes of Personal Property, Licensee shall pay for the cost of removal and disposal. Commented [GS(1]: Term start date will be determined closer to execution date. Page 110 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 4 of 17 Right of Entry No. 23-104550 SECTION 4 FEE Licensee shall pay to State a fee in the amount of Three Thousand Dollars ($3,000.00), which is due and payable on or before the Commencement Date. SECTION 5 ENVIRONMENTAL LIABILITY 5.1 Definitions. (a) “Hazardous Substance” means any substance that now or in the future becomes regulated or defined under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination, pollution, or cleanup, including oil and petroleum products. (b) “Release or threatened release of Hazardous Substance” means a release or threatened release as defined under any law described in Paragraph 5.1(a). (c) “Utmost care” means such a degree of care as would be exercised by a very careful, prudent, and competent person under the same or similar circumstances; the standard of care applicable under the Washington State Model Toxics Control Act (“MTCA”), Chapter 70A.305 RCW. (d) “Licensee and affiliates” when used in this Section 5 means Licensee or Licensee’s contractors, agents, employees, guests, invitees, licensees, affiliates, or any person on the Property with the Licensee’s permission. (e) “Liabilities” as used in this Section 5 means any claims, demands, proceedings, lawsuits, damages, costs, expenses, fees (including attorneys’ fees and disbursements), penalties, or judgments. 5.2 General Conditions. (a) Licensee’s obligations under this Section 5 extend to the area in, on, under, or above: (1) The Property; and (2) Adjacent state-owned aquatic lands if affected by a release of Hazardous Substances that occurs as a result of the Permitted Use. (b) Standard of Care. (1) Licensee shall exercise the utmost care with respect to Hazardous Substances. (2) Licensee shall exercise utmost care for the foreseeable acts or omissions of third parties with respect to Hazardous Substances, and the foreseeable consequences of those acts or omissions, to the extent required to establish a viable, third-party defense under the law. 5.3 Current Conditions and Duty to Investigate. State makes no representation about the condition of the Property or adjacent state-owned aquatic lands. Hazardous Substances may exist in, on, under, or above the Property. Page 111 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 5 of 17 Right of Entry No. 23-104550 5.4 Use of Hazardous Substances. (a) Licensee and its affiliates shall not use, store, generate, process, transport, handle, release, or dispose of Hazardous Substances, except in accordance with all applicable laws. (b) Licensee shall not undertake, or allow others to undertake by Licensee’s permission, acquiescence, or failure to act, activities that: (1) Result in a release or threatened release of Hazardous Substances; or (2) Cause, contribute to, or exacerbate any contamination exceeding regulatory cleanup standards whether the regulatory authority requires cleanup before, during, or after Licensee’s activities on the Property. 5.5 Management of Contamination, if any. (a) Licensee and affiliates shall not undertake activities that: (1) Damage or interfere with the operation of remedial or restoration activities, if any; (2) Result in human or environmental exposure to contaminated sediments, if any; (3) Result in the mechanical or chemical disturbance of on-site habitat mitigation, if any. 5.6 In the Event of a Release or Threatened Release. (a) Licensee shall immediately notify State if the Licensee becomes aware of any release or threatened release of Hazardous Substance; any new discovery of or new information about a problem or liability related to, or derived from, the presence of Hazardous Substances; or any actual or alleged violation of any federal, state, or local statute, ordinance, rule, regulation, or other law pertaining to Hazardous Substances. Licensee’s duty to report under this Paragraph extends to lands described in Paragraph 5.2(a) and to any other property used by Licensee in conjunction with the Property if a release of Hazardous Substances on the other property could affect the Property. (b) If a Licensee’s act or omission results in a release of Hazardous Substances, Licensee, at its sole expense, shall promptly take all actions necessary or advisable to clean up, contain, and remove the Hazardous Substances in accordance with applicable laws. (c) If Licensee submits any documents concerning environmental impacts or proposals relative to the Property to any federal, state, or local authorities, Licensee shall submit a copy of such documents to State. Documents subject to this requirement include, but are not limited to, applications, reports, studies, or audits for National Pollutant Discharge Elimination System permits; U.S. Army Corps of Engineers permits; State Hydraulic Project Approvals (HPA); State Water Quality Certifications; Shoreline Substantial Development permits; and any reporting necessary for the existence, location, and storage of Hazardous Substances on the Property. Page 112 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 6 of 17 Right of Entry No. 23-104550 5.7 Indemnification. (a) Licensee shall indemnify, defend, and hold harmless State from and against Liabilities that arise out of, or relate to: (1) The use, storage, generation, processing, transportation, handling, or disposal of any Hazardous Substance by Licensee and affiliates occurring during the term of this Right of Entry or whenever Licensee uses or has used the Property; (2) The release or threatened release of any Hazardous Substance resulting from any act or omission of Licensee and affiliates occurring during the term of this Right of Entry or whenever Licensee uses or has used the Property. (b) Licensee shall fully indemnify, defend, and hold harmless State for Liabilities that arise out of or relate to Licensee’s breach of obligations under Paragraph 5.4. (c) If Licensee fails to exercise care as described in Paragraph 5.2, to the extent permitted by law, Licensee shall fully indemnify, defend, and hold harmless State from and against Liabilities arising from the acts or omissions of third parties in relation to the release or threatened release of Hazardous Substances. 5.8 Reservation of Rights. (a) For Liabilities not covered by the indemnification provisions of Paragraph 5.7, the Parties expressly reserve and do not waive any rights, claims, immunities, causes of action, or defenses relating to Hazardous Substances that either Party may have against the other under law. (b) The Parties expressly reserve all rights, claims, immunities, and defenses that either Party may have against third parties. Nothing in this Section 5 benefits or creates rights for third parties. (c) The allocations of risks, Liabilities, and responsibilities set forth in this Section 5 do not release either Party from or affect the liability of either Party for Hazardous Substances claims or actions by regulatory agencies. SECTION 6 NO ASSIGNMENT Licensee shall not transfer or assign this Right of Entry. SECTION 7 INDEMNITY AND INSURANCE 7.1 Indemnity. (a) Licensee shall indemnify, defend, and hold harmless State, its employees, officials, officers, and agents from any Claim arising out of the Activities, out of activities related to the Activities, or out of the use of the Property by Licensee, its Page 113 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 7 of 17 Right of Entry No. 23-104550 contractors, agents, invitees, guests, employees, or affiliates to the fullest extent permitted by law and subject to the limitations provided below. (b) “Claim” as used in this Paragraph 7.1 means any financial loss, claim, suit, action, damages, expenses, costs, fees (including attorneys’ fees), fines, penalties, or judgments attributable to bodily injury, sickness, disease, death, and damages to tangible property, including, but not limited to, land, aquatic life, and other natural resources. “Damages to tangible property” includes, but is not limited to, physical injury to the Property, diminution of value, and/or damages resulting from loss of use of the Property. (c) State shall not require Licensee to indemnify, defend, and hold harmless State its employees, officials, officers, or agents for a Claim caused solely by or resulting solely from the negligence or willful act of State or State’s employees, officials, officers, or agents. (d) Licensee specifically and expressly waives any immunity that may be granted under the Washington State Industrial Insurance Act, Title 51 RCW in connection with its obligation to indemnify, defend, and hold harmless State and its employees, officials, officers, or agents. Further, Licensee’s obligation under this Right of Entry to indemnify, defend, and hold harmless State, its employees, officials, officers, and agents shall not be limited in any way by any limitation on amount or type of damages, compensation, or benefits payable to or for any third party under the worker’s compensation acts. (e) Only to the extent RCW 4.24.115 applies and requires such a limitation, if a Claim is caused by or results from the concurrent negligence of (a) State or State’s employees, officials, officers, or agents, and (b) the Licensee or Licensee’s contractors, agents, invitees, guests, employees or affiliates, these indemnity provisions shall be valid and enforceable only to the extent of the negligence of the Licensee and those acting on its behalf. (f) Section 5, Environmental Liability, shall exclusively govern Licensee’s liability to State for Hazardous Substances and its obligation to indemnify, defend, and hold harmless State for Hazardous Substances. 7.2 Insurance Terms. (a) Insurance Required. (1) Licensee certifies that on the Commencement Date of this Right of Entry it is a member of a self-insured risk pool for all the liability exposures, its self-insurance plan satisfies all State requirements, and its self-insurance plan provides coverage equal to that required in this Paragraph 7.2 and by Paragraph 7.3, Insurance Types and Limits. Licensee shall provide to State evidence of its status as a member of a self-insured risk pool. Upon request by State, Licensee shall provide a written description of its financial condition and/or the self-insured funding mechanism. Licensee shall provide State with at least thirty (30) days’ written notice prior to any material changes to Licensee’s self-insured funding mechanism. If during the term of this Right of Entry Licensee’s self-insurance plan fails to Page 114 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 8 of 17 Right of Entry No. 23-104550 provide coverage equal to that required in Paragraph 7.2 and Paragraph 7.3 of this Right of Entry, Licensee shall procure additional commercial insurance coverage to meet the requirements of this Right of Entry. The requirements in Section 7.2(a)(3) only apply where the Licensee procures additional commercial insurance to meet the requirements of this Right of Entry. (2) Unless State agrees to an exception, Licensee shall provide insurance issued by an insurance company or companies admitted to do business in the State of Washington and have a rating of A- or better by the most recently published edition of A.M. Best’s Insurance Reports. Licensee may submit a request to the risk manager for the Department of Natural Resources to approve an exception, in writing, to this requirement. If an insurer is not admitted, the insurance policies and procedures for issuing the insurance policies shall comply with Chapter 48.15 RCW and 284-15 WAC. (3) All general liability, excess, and umbrella liability insurance policies must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as an additional insured by way of endorsement. (4) All insurance provided in compliance with this Right of Entry must be primary as to any other insurance or self-insurance programs afforded to or maintained by State. (b) Waiver. (1) Licensee waives all rights against State for recovery of damages to the extent insurance maintained pursuant to this Right of Entry covers these damages. (2) Except as prohibited by law, Licensee waives all rights of subrogation against State for recovery of damages to the extent that they are covered by insurance maintained pursuant to this Right of Entry. (c) Proof of Insurance. (1) Licensee shall provide State with a certificate(s) and endorsement(s) of insurance executed by a duly authorized representative of each insurer, showing compliance with insurance requirements specified in this Right of Entry; and, if requested, copies of policies to State. (2) The certificate(s) of insurance must reference additional insureds and the Right of Entry number. (3) Receipt of such certificates, endorsements, or policies by State does not constitute approval by State of the terms of such policies. (d) State must receive written notice before cancellation or non-renewal of any insurance required by this Right of Entry, as follows: (1) Insurers subject to RCW 48.18 (admitted and regulated by the Insurance Commissioner): If cancellation is due to non-payment of premium, provide State ten (10) days’ advance notice of cancellation; otherwise, Page 115 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 9 of 17 Right of Entry No. 23-104550 provide State forty-five (45) days’ advance notice of cancellation or non- renewal. (2) Insurers subject to RCW 48.15 (surplus lines): If cancellation is due to non-payment of premium, provide State ten (10) days’ advance notice of cancellation; otherwise, provide State twenty (20) days’ advance notice of cancellation or non-renewal. (e) Adjustments in Insurance Coverage. (1) State may impose changes in the limits of liability for all types of insurance as State deems necessary. (2) Licensee shall secure new or modified insurance coverage within thirty (30) days after State requires changes in the limits of liability. (f) General Terms. (1) State does not represent that coverage and limits required under this Right of Entry are adequate to protect Licensee. (2) Coverage and limits do not limit Licensee’s liability for indemnification and reimbursements granted to State under this Right of Entry. (3) The Parties shall use any insurance proceeds payable by reason of damage or destruction to property first to restore the real property covered by this Right of Entry, then to pay the cost of the reconstruction, then to pay State any sums in arrears, and then to Licensee. 7.3 Insurance Types and Limits. (a) General Liability Insurance. (1) Licensee shall maintain commercial general liability insurance (CGL) or marine general liability (MGL) covering claims for bodily injury, personal injury, or property damage arising on the Property and/or arising out of Licensee’s use, occupation, or control of the Property and, if necessary, commercial umbrella insurance with a limit of not less than One Million Dollars ($1,000,000) per each occurrence. If such CGL or MGL insurance contains aggregate limits, the general aggregate limit must be at least twice the “each occurrence” limit. CGL or MGL insurance must have products-completed operations aggregate limit of at least two times the “each occurrence” limit. (2) CGL insurance must be written on Insurance Services Office (ISO) Occurrence Form CG 00 01 (or a substitute form providing equivalent coverage). All insurance must cover liability arising out of premises, operations, independent contractors, products completed operations, personal injury and advertising injury, and liability assumed under an insured contract (including the tort liability of another party assumed in a business contract) and contain separation of insured (cross-liability) condition. (3) MGL insurance must have no exclusions for non-owned watercraft. (b) Workers’ Compensation. (1) State of Washington Workers’ Compensation. Page 116 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 10 of 17 Right of Entry No. 23-104550 (i) Licensee shall comply with all State of Washington workers’ compensation statutes and regulations. Licensee shall provide workers’ compensation coverage for all employees of Licensee. Coverage must include bodily injury (including death) by accident or disease, which arises out of or in connection with Licensee’s use, occupation, and control of the Property. (ii) If Licensee fails to comply with all State of Washington workers’ compensation statutes and regulations, and State incurs fines or is required by law to provide benefits to or obtain coverage for such employees, Licensee shall indemnify State. Indemnity shall include all fines; payment of benefits to Licensee, employees, or their heirs or legal representatives; and the cost of effecting coverage on behalf of such employees. (2) Longshore and Harbor Worker’s Act. The Longshore and Harbor Worker’s Compensation Act (33 U.S.C. Section 901 et seq.) may require Licensee to provide insurance coverage for longshore and harbor workers other than seaman. Licensee shall ascertain if such insurance is required and, if required, shall maintain insurance in compliance with this Act. Licensee is responsible for all civil and criminal liability arising from failure to maintain such coverage. (3) Jones Act. The Jones Act (46 U.S.C. Section 688) may require Licensee to provide insurance coverage for seamen injured during employment resulting from negligence of the owner, master, or fellow crew members. Licensee shall ascertain if such insurance is required and, if required, shall maintain insurance in compliance with this Act. Licensee is responsible for all civil and criminal liability arising from failure to maintain such coverage. (c) Employer’s Liability Insurance. Licensee shall procure employer’s liability insurance, and, if necessary, commercial umbrella liability insurance with limits not less than One Million Dollars ($1,000,000) per each accident for bodily injury by accident or One Million Dollars ($1,000,000) per each employee for bodily injury by disease. (d ) Auto Policy Insurance. If Licensee operates, maintains, loads, or unloads vehicles as part of the Activities, Licensee shall maintain auto liability insurance and, if necessary, commercial umbrella liability insurance with a limit not less than One Million Dollars ($1,000,000) per accident. Such insurance must cover liability arising out of “Any Auto”. (e) Protection and Indemnity Insurance (P&I). For each vessel owned, used, and/or operated on the Property by Licensee or Licensee’s contractor(s), Licensee or Licensee’s contractor(s) shall procure and maintain P&I insurance with limits of liability not less than One Million Dollars ($1,000,000). The P&I insurance must cover, at a minimum, all claims relating to injuries or damages to persons or property sustained in, on, or about the property; fuel spills; wreck removal; salvage; injuries to passengers and crew of the vessel; and damages to nets and Page 117 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 11 of 17 Right of Entry No. 23-104550 fishing lines. If necessary, Licensee shall procure and maintain commercial umbrella liability insurance covering claims for these risks. (f) Hull Insurance. Licensee or Licensee’s contractor(s) shall procure and maintain hull insurance for each vessel owned and/or operated by the Licensee or Licensee’s contractor(s) on the Property. The coverage amount of each hull insurance policy must be equal to the value of the covered vessel. SECTION 8 TERMINATION 8.1 Termination by Revocation. State may terminate this Right of Entry at any time upon thirty (30) days’ notice to the Licensee. 8.2 Termination by Completion of Activities. If Licensee completes Activities and restoration of the Property prior to the Termination Date, this Right of Entry terminates upon Licensee’s completion of all Activities and the restoration of the Property under Paragraph 3.2. 8.3 Termination Resulting from Breach. If Licensee breaches any terms of this Right of Entry, State may terminate this Right of Entry immediately upon notice to Licensee. SECTION 9 NOTICE Following are the locations for delivery of notice and the Contact Person. Any Party may change the location of notice and/or the Contact Person upon reasonable notice to the other. State: DEPARTMENT OF NATURAL RESOURCES Aquatic Resources, Rivers District 360-748-2387 rivers@dnr.wa.gov Grantee: CITY OF PASCO PUBLIC WORKS Jon Padvorac, City Engineer 509-545-3445 padvoracj@pasco-wa.gov SECTION 10 MISCELLANEOUS 10.1 Headings. The headings used in this Right of Entry are for convenience only and in no way define, limit, or extend the scope of this Right of Entry or the intent of any provision. Page 118 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 12 of 17 Right of Entry No. 23-104550 10.2 Invalidity. The invalidity, voidness, or illegality of any provision of this Right of Entry does not affect, impair, or invalidate any other provision of this Right of Entry. 10.3 Applicable Law and Venue. This Right of Entry is to be interpreted and construed in accordance with the laws of the State of Washington. Venue for any action arising out of or in connection with this Right of Entry is in the Superior Court for Thurston County, Washington. 10.4 Statutory Reference. Any reference to a statute or rule means that statute or rule as presently enacted or hereafter amended or superseded. 10.5 Modification. No modification of this Right of Entry is effective unless in writing and signed by the Parties. Oral representations or statements do not bind either Party. 10.6 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Right of Entry. 10.7 Survival. Any obligations of Licensee not fully performed upon termination of this Right of Entry do not cease, but continue as obligations of the Licensee until fully performed. Page 119 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 13 of 17 Right of Entry No. 23-104550 10.8 Exhibits and Attachments. All referenced exhibits and attachments are incorporated in this Right of Entry unless expressly identified as unincorporated. THIS AGREEMENT requires the signature of all Parties and is effective on the date of the last signature below. CITY OF PASCO PUBLIC WORKS Dated: _____________________, 20__ __________________________________ By: JON PADVORAC Title: City Engineer Address: 525 N. 3rd Avenue Pasco, WA 99301 Phone: 509-545-3445 STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES Dated: _____________________, 20__ __________________________________ By: THOMAS A. GORMAN Title: Aquatic Resources Division Manager Address: 1111 Washington St SE MS 47027 Olympia, WA 98504 Aquatic Lands Right of Entry Template approved as to form this 14th day of July 2021 Jennifer Clements, Assistant Attorney General Page 120 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 14 of 17 Right of Entry No. 23-104550 EXHIBIT A PROPERTY DESCRIPTION Agreement Number: 23-104550 1. PROPERTY DESCRIPTION: Located in and in front of a portion of Block 13 of the Pasco Shorelands lying in Section 32, Township 9 North, Range 30 East, W.M., Franklin County. 2. COORDINATES OF THE RIGHT OF ENTRY: Lat: 46.21627N Long: -119.08710W (WGS 84) 3. APPROXIMATE SQUARE FOOTAGE OF RIGHT OF ENTRY: Total square feet 675,225   Page 121 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 15 of 17 Right of Entry No. 23-104550 Page 122 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 16 of 17 Right of Entry No. 23-104550 EXHIBIT B 1. DESCRIPTION OF ACTIVITIES A. Existing Conditions. The City of Pasco Waste Water Treatment Plan (WWTP) is located upland of the Columbia river, located in Frankin County. The Treatment plant operates the existing 24-inch diameter outfall pipe, and diffuser, which is oriented north-south, and is approximately 900 feet offshore from the north bank of the river. This outfall pipe was authorized under 51-070234 and installed in 1954, with the construction of the WWTP, and the diffuser section was installed in late 1990s. The existing 24-inch diamater pipe will be removed and replaced with an new 42-inch diameter HDPE outfall pipe and diffuser, which is being authorized under 51-103464. B. Activities. Licensee is proposing to utilize barge(s) to aid in construction activities associated with the City of Pasco WWTP Clean Water Preservation Project Phase 2. Barges are needed to support construction of the new outfall pipe and decommissioning/removal of of the existing 24-inch diameter outfall pipe. Barge activities include: excavation using a clamshell barge or excavator operating from a floating barge, stockpiling of sediment for dewatering, storage of crushed clean material for pipe installation, towing and placement of new HDPE pipe, tensioning of pipe, and installation of spud piles or cable anchors to secure barge(s). The area of operation is defined and shown on Exhibit A. Subject to the conditions in this Right of Entry, State grants its consent to these Activities. C. Permits. Licensee has secured the following permits for the Activities:  SERP (State Environmental Review Process) Submittal, Clean Water Preservation Project, WQC-2021-Pasco-00020 and WQC-2022-Pasco-00044, Department of Ecology, issued September 29, 2022.  National Pollutant Discharge Elimination System (NPDES) Waste Discharge Permit No. WA-004496-2, Department of Ecology, issued June 29, 2010, expires June 30, 2015. Permit has been administratively extended while the Department of Ecology (Ecology) generates a new permit.  Construction Stormwater General Permit: WAR312101, Department of Ecology, issued February 14, 2023.  Letter of Concurrence for Determination of No Historic Properties, Section 106 of the National Historic Preservation Act, DAHP Project Number 2022- 04-02720, Department of Ecology, Water Quality Program, issued October 12, 2022.  Hydraulic Project Approval: 2022-3-53+01, Washington Department of Fish and Wildlife, issued November 15, 2022, expires November 14, 2027. Page 123 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Right of Entry (Rev. 7/14/2021) Page 17 of 17 Right of Entry No. 23-104550  SEPA Checklist, City of Pasco, signed July 5, 2022.  SEPA Notice of Mitigated Determination of Non-Significance: SEPA 2022- 069, City of Pasco, issued July 27, 2022.  Shoreline Substantial Development and Conditional Use permit (includes Critical Areas): SMP 2022-003, City of Pasco, issued August 18, 2022.  Biological Opinion and Letter of Concurrence: FWS/R1/2022-0036919, United States Department of the Interior Fish and Wildlife, issued September 27, 2022.  Nationwide Permit 1 and 7: NWS-2022-223, Department of Army Corp of Engineers, issued September 15, 2022, expires March 14, 2027 (includes DOE 401 and CZMA certification).  Tier 1 Antidegradation Evaluation for the City of Pasco WWTP Clean Water Preservation Project Phase 2 in Pasco, Washington, USACE Reference # NWS-2022-223, Dredged Material Management Office (DMMP), issued May 20, 2022.  Endangered Species Act Biological Opinion: WCRO-2022-01039, United States Department of Commerce National Oceanic and Atmospheric Administration (NOAA), issued November 17, 2022.  Private Aids to Navigation (PATON) Permit, United States Coast Guard, issued October 25, 2022. 2. ADDITIONAL OBLIGATIONS AND REQUIREMENTS A. Licensee shall avoid damage caused by propeller wash from vessels. B. Licensee shall not allow moorage or anchorage of vessels in water shallower than seven (7) feet, and shall not allow vessels to come in contact with underlying bedlands (commonly referred to as “grounding out”) at any time. C. Licensee shall only conduct in-water activities during time periods authorized for such activities under WAC 220-660-110, Authorized Work Times in Freshwater Areas, or as otherwise directed by the Washington Department of Fish and Wildlife (WDFW) – AND [United States Fish and Wildlife Service (USFWS) AND National Marine Fisheries Service (NMFS). Aquatic Lands Right of Entry Template approved as to form this 14th day of July 2021 Jennifer Clements, Assistant Attorney General Page 124 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 1 of 32 Easement No. 51-104551 When recorded, return to: Attn: Jon Padvorac City of Pasco Public Works 525 N. 3rd Avenue Pasco, Washington 99301 AQUATIC LANDS EASEMENT Easement No. 51-104551 Grantor: Washington State Department of Natural Resources Grantee(s): City of Pasco Public Works Abbreviated Legal Description: SW1/4 SE1/4, NW1/4 SE1/4, SE1/4 SW1/4, NE1/4 SW1/4 Section 32, Township 9 North, Range 30East,W.M. Complete Legal Description on Page 30 Auditor Reference Number(s) TBD Assessor’s Property Tax Parcel or Account Number: Not Applicable Assessor’s Property Tax Parcel or Account Number for Upland parcel used in conjunction with this Easement: Not Applicable THIS EASEMENT is made by and between the STATE OF WASHINGTON, acting through the Department of Natural Resources (“State”), and CITY OF PASCO, a government agency (“Grantee”). State has authority to enter into this Easement under Chapter 43.12 RCW, Chapter 43.30 RCW, and Title 79 of the Revised Code of Washington (RCW). THEREFORE, the Parties agree as follows: Commented [GS(1]: Need the final recorded ROS (Record of Survey) Page 125 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 2 of 32 Easement No. 51-104551 SECTION 1 GRANT OF EASEMENT 1.1 Easement Defined. (a) State grants and conveys to Grantee a nonexclusive in gross easement, subject to the terms and conditions of this agreement, over, upon, and under those bedlands and 1st class shorelands of the Columbia River legally described in Exhibit A (“Easement Property”). In this agreement, the term “Easement” means this agreement and the rights granted. (b) This Easement is subject to all valid interests of third parties noted in the records of Franklin County, or on file in the Office of the Commissioner of Public Lands, Olympia, Washington; rights of the public under the Public Trust Doctrine or federal navigation servitude; and treaty rights of Indian Tribes. (c) This Easement does not include any right to harvest, collect or damage any natural resources, including, but not limited to, aquatic life or living plants; any water rights; any mineral rights; or any right to excavate or withdraw sand, gravel, or other valuable materials, except to the extent expressly permitted in Exhibit B. (d) This Easement is not exclusive. State may enter and use the Easement Property for any purpose or permit others to enter and use the Easement Property for any purpose so long as such use does not unreasonably interfere with the rights granted herein. 1.2 Survey and Easement Property Descriptions. (a) Grantee’s obligation to provide a true and accurate description of the Easement Property, and the location of the Improvements to be constructed is a material term of this Easement. Grantee warrants that the record of survey referenced in Exhibit A includes a true and accurate description of the Easement Property, and the location of the Improvements to be constructed. (b) Unless State has given Grantee written authorization to use such lands, Grantee’s use of any state-owned aquatic lands outside the Easement Property boundaries is a material breach of this Easement and State may seek remedies under Section 14 of this Easement in addition to any other remedies afforded by law or equity or otherwise. 1.3 Condition of Easement Property. State makes no representation regarding the condition of the Easement Property, Improvements located on the Easement Property, the suitability of the Easement Property for Grantee’s Permitted Use, compliance with governmental laws and regulations, availability of utility rights, access to the Easement Property, or the existence of hazardous substances on the Easement Property. SECTION 2 USE 2.1 Permitted Use. This Easement is granted for the purpose of and is limited to: Page 126 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 3 of 32 Easement No. 51-104551 expanded construction area (the “Permitted Use”). Exhibit B includes additional details about the Permitted Use, the Easement Property, and the Improvements. The Permitted Use is subject to the restrictions and additional obligations set forth in this Easement. The Permitted Use of this Easement shall not be changed or modified without the written consent of State, which shall be at State’s sole discretion. 2.2 Restrictions on Permitted Use and Operations. (a) Grantee shall not cause or permit: (1) Damage to land or natural resources on the Easement Property or adjacent state-owned aquatic lands, regardless of whether the damages are a direct or indirect result of the Permitted Use (2) Waste on the Easement Property or adjacent state-owned aquatic lands; or (3) Deposit of material or filling activity on the Easement Property or adjacent state-owned aquatic lands, unless approved by State in writing and except to the extent expressly permitted in Exhibit B. This prohibition includes, but is not limited to, any deposit of fill, rock, earth, ballast, wood waste, hydrocarbons, refuse, garbage, waste matter (including, but not limited to, chemical, biological, or toxic wastes), pollutants, or other matter. (b) Nothing in this Easement shall be interpreted as an authorization to dredge the Easement Property. (c) Grantee shall immediately notify State if Grantee breaches any of the terms and conditions of this Easement. (d) State’s failure to notify Grantee of Grantee’s failure to comply with all or any of the restrictions set out in this Paragraph 2.2 does not constitute a waiver of any remedies available to State. (e) Grantee’s compliance with the restrictions in this Paragraph 2.2 does not limit Grantee’s liability under any other provision of this Easement or the law. 2.3 Conformance with Laws. Grantee shall keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding Grantee’s use of the Easement Property. 2.4 Liens and Encumbrances. Unless expressly authorized by State in writing, Grantee shall keep the Easement Property free and clear of any liens and encumbrances arising out of or relating to the Permitted Use or Grantee’s use of the Easement Property. 2.5 Interference with Other Uses. (a) Grantee shall exercise Grantee’s rights under this Easement in a manner that minimizes or avoids interference with the rights of State, the public, or others with valid rights to use or occupy the Easement Property or surrounding lands and water. Page 127 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 4 of 32 Easement No. 51-104551 (b) To the fullest extent reasonably possible, Grantee shall place and construct Improvements in a manner that allows unobstructed movement in and on the waters above and around the Easement Property. (c) Except in an emergency, Grantee shall provide State with written notice regarding the start of construction or other Significant Activity on the Easement Property at least sixty (60) days in advance (“Notice of Significant Activity”). “Significant Activity” means any activity that may affect the use or enjoyment of the Easement Property or adjacent state-owned aquatic lands by the State of Washington, public, or others with valid rights to use or occupy the Easement Property or adjacent state-owned aquatic lands. (d) Grantee shall mark the location of any hazards associated with the Permitted Use and any hazards associated with the Improvements in a manner that ensures reasonable notice to the public, including, but not limited to, boaters, kayakers, swimmers, and divers. SECTION 3 TERM 3.1 Term Defined. The term of this Easement is five (5) years, beginning on the 1st day of July, 2022 (the “Commencement Date”), and ending on the 30th day of June, 2027 (the “Termination Date”), unless terminated sooner under the terms of this Easement (the “Term”). Whenever the phrase “termination of this Easement” or “termination of the Easement” is used in this Easement, it shall refer to the ending, termination, cancellation, or expiration of the Easement. 3.2 Renewal of Easement and/or Application for New Easement. This Easement does not provide a right of renewal. Grantee may apply for a new Easement, which State has discretion to grant. Grantee must apply for a new Easement at least one (1) year prior to Termination Date. 3.3 End of Term. (a) Removal of Improvements: Prior to the termination of this Easement, Grantee shall remove Improvements in accordance with Section 7. (b) Restoration of the Easement Property: (1) Prior to the termination of this Easement, Grantee shall restore the Easement Property to its condition prior to Grantee’s Use of the Easement Property. (2) Restoration of the Easement Property is to be done at Grantee’s expense and to the satisfaction of State. Restoration of the Easement Property is considered to be Work, as described in Section 7 of the Easement. Grantee’s plans for restoring the Easement Property shall be submitted to State for prior approval in accordance with Section 7 of this Easement. Commented [GS(2]: Term will be changed closer to execution of the contract. Page 128 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 5 of 32 Easement No. 51-104551 (3) If Grantee fails to restore the condition of the Easement Property as required by this Paragraph, State may take steps reasonably necessary to remedy Grantee’s failure. Upon demand by State, Grantee shall pay all costs of State’s remedy, lost revenue resulting from the condition of the Easement Property, and administrative costs associated with State’s remedy. (c) Vacation of Property: Upon the termination of this Easement, Grantee shall cease all operations on and use of the Easement Property. SECTION 4 FEES 4.1 Fee. For the Term, Grantee shall pay to State an administrative fee calculated in accordance with RCW 79.110.240 of One Thousand Eight Hundred Seventy Dollars and 00/100 ($1,870.00), which is due and payable on or before the Commencement Date. Any payment not paid by State’s close of business on the date due is past due. 4.2 Payment Place. Grantee shall make payment to Financial Management Division, 1111 Washington St SE, PO Box 47041, Olympia, WA 98504-7041. SECTION 5 OTHER EXPENSES 5.1 Utilities. Grantee shall pay all fees charged for utilities required or needed by the Permitted Use. 5.2 Taxes and Assessments. Grantee shall pay all taxes, assessments, and other governmental charges applicable or attributable to the Easement, the Grantee-Owned Improvements, or the Permitted Use. 5.3 Proof of Payment. If required by State, Grantee shall furnish to State receipts or other appropriate evidence establishing the payment of amounts this Easement requires Grantee to pay. SECTION 6 LATE PAYMENTS AND OTHER CHARGES 6.1 Failure to Pay. Failure to pay any fees or other expenses due under this Easement is a breach by Grantee. State may seek remedies in Section 14 as well as late charges and interest as provided in this Section 6. In addition, if Grantee fails to pay any amounts due to third parties under this Easement, State may pay the amount due, and recover its cost in accordance with this Section 6. 6.2 Late Charge. If State does not receive any payment within ten (10) days of the date due, Grantee shall pay to State a late charge equal to four percent (4%) of the unpaid amount or Fifty Page 129 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 6 of 32 Easement No. 51-104551 Dollars ($50), whichever is greater, to defray the overhead expenses of State incident to the delay. 6.3 Interest Penalty for Past Due Fees and Other Sums Owed. (a) Grantee shall pay interest on the past due fees at the rate of one percent (1%) per month until paid, in addition to paying the late charges determined under Paragraph 6.2. Fees not paid by the close of business on the due date will begin accruing interest the day after the due date. (b) If State pays or advances any amounts for or on behalf of Grantee, Grantee shall reimburse State for the amount paid or advanced and shall pay interest on that amount at the rate of one percent (1%) per month from the date State notifies Grantee of the payment or advance. This includes, but is not limited to State’s payment of taxes, assessments, insurance premiums, costs of removal and disposal of unauthorized materials, costs of removal and disposal of Improvements under any provision of this Easement, or other amounts not paid when due. 6.4 Referral to Collection Agency and Collection Agency Fees. If State does not receive full payment within thirty (30) days of the due date, State may refer the unpaid amount to a collection agency as provided by RCW 19.16.500 or other applicable law. Upon referral, Grantee shall pay collection agency fees in addition to the unpaid amount. 6.5 No Accord and Satisfaction. If Grantee pays, or State otherwise receives, an amount less than the full amount then due, State may apply such payment as it elects. State may accept payment in any amount without prejudice to State’s right to recover the balance or pursue any other right or remedy. No endorsement or statement on any check, any payment, or any letter accompanying any check or payment constitutes accord and satisfaction. SECTION 7 IMPROVEMENTS, PERSONAL PROPERTY, AND WORK 7.1 Improvements and Personal Property Defined. (a) “Improvements,” consistent with RCW 79.105 through 79.140, are additions within, upon, or attached to the Easement Property. Improvements include, but are not limited to, fill, structures and fixtures. (b) “Personal Property” means items that can be removed from the Easement Property without (1) injury to the Easement Property, adjacent state-owned lands or Improvements or (2) diminishing the value or utility of the Easement Property, adjacent state-owned lands or Improvements. (c) “State-Owned Improvements” are Improvements made or owned by the State of Washington. State-Owned Improvements include any construction, alteration, or addition to State-Owned Improvements made by Grantee. Page 130 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 7 of 32 Easement No. 51-104551 (d) “Grantee-Owned Improvements” are (1) Improvements owned by Grantee that are existing on the Easement Property on the Commencement Date or (2) Improvements made by Grantee with State’s consent. (e) “Unauthorized Improvements” are Improvements made on the Easement Property during the Term without State’s prior consent or Improvements made by Grantee that do not conform with plans submitted to and approved by State. (f) “Improvements Owned by Others” are Improvements made by others with a right to occupy or use the Easement Property or adjacent state-owned lands. 7.2 Existing Improvements. On the Commencement Date, the following Grantee-Owned Improvements are located on the Easement Property: one (1) existing 24” outfall pipe and diffuser authorized under 51-070234. 7.3 Construction, Major Repair, Modification, and Other Work. (a) This Paragraph 7.3 governs construction, alteration, replacement, major repair, modification, and removal of Improvements ( collectively “Work”). (b) Except in an emergency, Grantee shall not conduct any Work without State’s prior written consent. Grantee shall obtain State’s prior written consent as follows: (1) Grantee shall submit to State plans and specifications describing the proposed Work at least sixty (60) days before submitting permit applications to regulatory authorities, unless Grantee and State otherwise agree to coordinate permit applications. At a minimum, or if no permits are necessary, Grantee shall submit plans and specifications to State at least ninety (90) days before commencement of Work. (2) State may deny consent if State determines that denial is in the best interests of the State of Washington or if the proposed Work does not comply with Paragraph 7.4. State may impose additional conditions intended to protect and preserve the Easement Property or adjacent state- owned aquatic lands. (c) Grantee shall immediately notify State of emergency Work. Upon State’s request, Grantee shall provide State with as-built plans and specifications of emergency Work. (d) Grantee shall not commence Work until Grantee or Grantee’s contractor has: (1) Obtained a performance and payment bond in an amount equal to one hundred twenty-five percent (125%) of the estimated cost of construction. Grantee or Grantee’s contractor shall maintain the performance and payment bond until the costs of the Work, including all laborers and material persons, are paid in full. (2) Obtained all required permits. (3) Provided Notice of Significant Activity in accordance with Paragraph 2.5(c). (e) Grantee shall preserve and protect Improvements Owned by Others, if any. Page 131 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 8 of 32 Easement No. 51-104551 (f) Grantee shall preserve all legal land subdivision survey markers and witness objects (“Markers”). If disturbance of a Marker will be a necessary consequence of Grantee’s construction, Grantee shall reference and/or replace the Marker in accordance with all applicable laws and regulations current at the time, including, but not limited to Chapter 58.24 RCW. At Grantee’s expense, Grantee shall retain a registered professional engineer or licensed land surveyor to reestablish destroyed or disturbed Markers in accordance with United States General Land Office standards. (g) Before completing Work, Grantee shall remove all debris and restore the Easement Property, as nearly as possible, to its natural condition before the Work began. If Work is intended for removal of Improvements at End of Term, Grantee shall restore the Easement Property in accordance with Paragraph 3.3, End of Term. (h) Upon completing Work, Grantee shall promptly provide State with as-built plans and specifications. State may also require Grantee to obtain an updated record of survey showing the Easement Property boundaries and the as-built location of all Improvements on the Easement Property. (i) State shall not charge additional fees for authorized Improvements installed by Grantee on the Easement Property during this Term, but State may charge additional fees for such Improvements if and when the Grantee or successor obtains a subsequent use authorization for the Easement Property and State has waived the requirement for removal of Improvements as provided in Paragraph 7.5. 7.4 Standards for Work. (a) Applicability of Standards for Work. (1) The standards for Work in Paragraph 7.4(b) apply to Work commenced in the five-year period following the Commencement Date. Work commences when State approves plans and specifications. (2) If Grantee commences Work five years or more after the Commencement Date, Grantee shall comply with State’s current standards for Work. (3) If Grantee commences Work five years or more after the Commencement Date, Grantee shall ascertain State’s current standards for Work as follows: (i) Before submitting plans and specifications for State’s approval as required by Paragraph 7.3 of the Easement, Grantee shall request State to provide Grantee with State’s current standards for Work on state-owned aquatic lands. (ii) Within thirty (30) days of receiving Grantee’s request, State shall provide Grantee with State’s current standards for Work, which will be effective for the purpose of State’s approval of Grantee’s proposed Work, provided Grantee submits plans and specifications for State’s approval within two (2) years of Grantee’s request for standards. Page 132 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 9 of 32 Easement No. 51-104551 (iii) If State does not timely provide State’s current standards for Work upon Grantee’s request, the standards for Work under Paragraph 7.4(b) apply to Grantee’s Work, provided Grantee submits plans and specifications as required by Paragraph 7.3 within two (2) years of Grantee’s request for State’s current standards for Work. (iv) If Grantee fails to (1) make a request for State’s current standards for Work or (2) timely submit plans and specifications to State after receiving State’s current standards for Work, Grantee, at Grantee’s sole expense, shall make changes in plans or Work necessary to conform to State’s current standards for Work upon State’s demand. (b) The following standards for Work apply to Work commenced in the five-year period following the Commencement Date. (1) Grantee shall only conduct in-water Work during time periods authorized for such work under WAC 220-660-110, Authorized Work Times in Freshwater Areas, or as otherwise directed by the Washington Department of Fish and Wildlife (WDFW) OR United States Fish and Wildlife Service (USFWS) OR National Marine Fisheries Service (NMFS). 7.5 Grantee-Owned Improvements at End of Easement. (a) Disposition. (1) Grantee shall remove Grantee-Owned Improvements in accordance with Paragraph 7.3 upon the termination of the Easement unless State waives the requirement for removal. (2) Grantee-Owned Improvements remaining on the Easement Property on the termination of the Easement shall become State-Owned Improvements without payment by State, unless State elects otherwise. State may refuse or waive ownership. (3) If Grantee-Owned Improvements remain on the Easement Property after the termination of the Easement without State’s consent, State may remove all Improvements and Grantee shall pay State’s costs of removal and disposal. (b) Conditions Under Which State May Waive Removal of Grantee-Owned Improvements. (1) State may waive removal of any Grantee-Owned Improvements whenever State determines that it is in the best interests of the State of Washington. (2) If Grantee enters into a new Easement, State may waive requirement to remove Grantee-Owned Improvements. State also may consent to Grantee’s continued ownership of Grantee-Owned Improvements. (3) State may waive requirement to remove Grantee-Owned Improvements upon consideration of a timely request from Grantee, as follows: Page 133 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 10 of 32 Easement No. 51-104551 (i) Grantee shall submit its request to leave Grantee-Owned Improvements to State at least one (1) year before the Termination Date. (ii) State, within ninety (90) days of receiving Grantee’s request, will notify Grantee whether State consents to any Grantee-Owned Improvements remaining. State has no obligation to grant consent. (iii) State’s failure to respond to Grantee’s request to leave Improvements within ninety (90) days is a denial of the request. (c) Grantee’s Obligations if State Waives Removal. (1) Grantee shall not remove a Grantee-Owned Improvement if State waives the requirement for removal of that Grantee-Owned Improvement. (2) Grantee shall maintain such Grantee-Owned Improvements in accordance with this Easement until the termination of this Easement. State may require Grantee to take appropriate steps to decommission the structure. Grantee is liable to State for cost of repair if Grantee causes or allows damage to Grantee-Owned Improvements State has designated to remain. (3) State may condition its waiver of removal on Grantee entering into a new Easement for the Grantee-Owned Improvements. 7.6 Unauthorized Improvements. (a) Unauthorized Improvements belong to State, unless State elects otherwise. (b) The placement of Unauthorized Improvements on the Easement Property is a breach of this Easement and State may require removal of any or all Unauthorized Improvements. If State requires removal of Unauthorized Improvements and if Grantee fails to remove the Unauthorized Improvements, State may remove the Unauthorized Improvements and Grantee shall pay for the cost of removal and disposal. (c) In addition to requiring removal of Unauthorized Improvements, State may charge Grantee a use fee that is sixty percent (60%) higher than the full market value of the use of the land for the Unauthorized Improvements from the time of installation or construction until the time the Unauthorized Improvements are removed. (d) If State consents to Unauthorized Improvements remaining on the Easement Property, upon State’s consent, the Unauthorized Improvements will be treated as Grantee-Owned Improvements and the removal and ownership of such Improvements shall be governed by Paragraph 7.5. If State consents to the Unauthorized Improvements remaining on the Easement Property, State may charge a use fee that is sixty percent (60%) higher than the full market value of the use of the land for the Unauthorized Improvements from the time of installation or construction until State consents. 7.7 Personal Property. (a) Grantee retains ownership of Personal Property unless Grantee and State agree otherwise in writing. Page 134 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 11 of 32 Easement No. 51-104551 (b) Grantee shall remove Personal Property from the Easement Property by the termination of the Easement. Grantee is liable for damage to the Easement Property and to any Improvements that may result from removal of Personal Property. (c) State may remove, sell, or dispose of all Personal Property left on the Easement Property after the termination of the Easement. (1) If State conducts a sale of Personal Property, State shall first apply proceeds to State’s costs of removing the Personal Property, State’s costs in conducting the sale, and any other payment due from the Grantee to State. State shall pay the remainder, if any, to the Grantee. Grantee shall be liable for any costs of removing the Personal Property and conducting the sale that exceed the proceeds received by State. (2) If State disposes of Personal Property, Grantee shall pay for the cost of removal and disposal. SECTION 8 ENVIRONMENTAL LIABILITY/RISK ALLOCATION 8.1 Definitions. (a) “Hazardous Substance” means any substance that now or in the future becomes regulated or defined under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination, pollution, or cleanup. (b) “Release or threatened release of Hazardous Substance” means a release or threatened release as defined under any law described in Paragraph 8.1(a). (c) “Utmost care” means such a degree of care as would be exercised by a very careful, prudent, and competent person under the same or similar circumstances; the utmost care required under RCW 70A.305.040(3)(a)(iii) of the Washington State Model Toxics Control Act. (d) “Grantee and affiliates” when used in this Section 8 means Grantee or Grantee’s subgrantees, contractors, agents, employees, guests, invitees, licensees, affiliates, or any person on the Easement Property with the Grantee’s permission. (e) “Liabilities” as used in this Section 8 means any claims, demands, proceedings, lawsuits, damages, costs, expenses, fees (including attorneys’ fees and disbursements), penalties, or judgments. 8.2 General Conditions. (a) Grantee’s obligations under this Section 8 extend to the area in, on, under, or above: (1) The Easement Property and (2) Adjacent state-owned aquatic lands if affected by a release of Hazardous Substances that occurs as a result of the Permitted Use. (b) Standard of Care. Page 135 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 12 of 32 Easement No. 51-104551 (1) Grantee shall exercise the utmost care with respect to Hazardous Substances. (2) As relates to the Permitted Use, Grantee shall exercise utmost care for the foreseeable acts or omissions of third parties with respect to Hazardous Substances, and the foreseeable consequences of those acts or omissions, to the extent required to establish a viable, third-party defense under the law. 8.3 Current Conditions and Duty to Investigate. (a) State makes no representation about the condition of the Easement Property or adjacent state-owned aquatic lands. Hazardous Substances may exist in, on, under, or above the Easement Property or adjacent state-owned aquatic lands. (b) This Easement does not impose a duty on State to conduct investigations or supply information to Grantee about Hazardous Substances. (c) Grantee is responsible for conducting all appropriate inquiry and gathering sufficient information concerning the Easement Property and the existence, scope, and location of Hazardous Substances on or near the Easement Property necessary for Grantee to meet Grantee’s obligations under this Easement and utilize the Easement Property for the Permitted Use. 8.4 Use of Hazardous Substances. (a) Grantee and affiliates shall not use, store, generate, process, transport, handle, release, or dispose of Hazardous Substances, except in accordance with all applicable laws. (b) Grantee shall not undertake, or allow others to undertake by Grantee’s permission, acquiescence, or failure to act, activities that result in a release or threatened release of Hazardous Substances. (c) If use of Hazardous Substances related to the Permitted Use or Grantee’s use of the Property results in a violation of law: (1) Grantee shall submit to State any plans for remedying the violation, and (2) Grantee shall implement any measures to restore the Easement Property or natural resources that State may require in addition to remedial measures required by regulatory authorities. (d) Grantee shall comply with the provisions of Chapter 90.56 RCW Oil and Hazardous Substance Spill Prevention and Response Act. Grantee shall develop, update as necessary, and operate in accordance with a plan of operations that is consistent with the requirements of Chapter 90.56 RCW. 8.5 Management of Contamination. (a) Grantee and affiliates shall not undertake activities that: (1) Damage or interfere with the operation of remedial or restoration activities, if any; (2) Result in human or environmental exposure to contaminated sediments, if any; Page 136 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 13 of 32 Easement No. 51-104551 (3) Result in the mechanical or chemical disturbance of on-site habitat mitigation, if any. (b) If requested, Grantee shall allow reasonable access to: (1) Employees and authorized agents of the United States Environmental Protection Agency (EPA), the Washington State Department of Ecology, health department, or other similar environmental agencies; and (2) Potentially liable or responsible parties who are the subject of an order or consent decree that requires access to the Easement Property. Grantee may negotiate an access agreement with such parties, but Grantee may not unreasonably withhold such agreement. 8.6 Notification and Reporting. (a) Grantee shall immediately notify State if Grantee becomes aware of any of the following: (1) A release or threatened release of Hazardous Substances; (2) Any new discovery of or new information about a problem or liability related to, or derived from, the presence of Hazardous Substances; (3) Any lien or action arising from Hazardous Substances; (4) Any actual or alleged violation of any federal, state, or local statute, ordinance, rule, regulation, or other law pertaining to Hazardous Substances; (5) Any notification from the EPA or the Washington State Department of Ecology that remediation or removal of Hazardous Substances is or may be required at the Easement Property. (b) Grantee’s duty to report under Paragraph 8.6(a) extends to lands described in Paragraph 8.2(a), and to any other property used by Grantee in conjunction with the Easement Property if a release of Hazardous Substances on the other property could affect the Easement Property. (c) Grantee shall provide State with copies of all documents Grantee submits to any federal, state, or local authorities concerning environmental impacts or proposals relative to the Easement Property. Documents subject to this requirement include, but are not limited to, applications, reports, studies, or audits for National Pollutant Discharge Elimination System permits (NPDES); United States Army Corps of Engineers permits; State Hydraulic Project Approvals (HPA); State Water Quality Certifications; Substantial Shoreline Development permits; and any reporting necessary for the existence, location, and storage of Hazardous Substances on the Easement Property. 8.7 Indemnification. (a) Grantee shall fully indemnify, defend, and hold harmless State from and against any Liabilities that arise out of, or relate to: (1) The use, storage, generation, processing, transportation, handling, or disposal of any Hazardous Substance by Grantee and affiliates occurring whenever Grantee uses or has used the Easement Property; Page 137 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 14 of 32 Easement No. 51-104551 (2) The release or threatened release of any Hazardous Substance resulting from any act or omission of Grantee and affiliates occurring whenever Grantee uses or has used the Easement Property. (b) Grantee shall fully indemnify, defend, and hold harmless State for any Liabilities that arise out of or relate to Grantee’s breach of obligations under Paragraph 8.5. (c) If Grantee fails to exercise care as described in Paragraph 8.2(b)(2), Grantee shall fully indemnify, defend, and hold harmless State from and against Liabilities arising from the acts or omissions of third parties in relation to the release or threatened release of Hazardous Substances. 8.8 Reservation of Rights. (a) For Liabilities not covered by the indemnification provisions of Paragraph 8.7, the Parties expressly reserve and do not waive any rights, claims, immunities, causes of action, or defenses relating to Hazardous Substances that either Party may have against the other under law. (b) The Parties expressly reserve all such rights, claims, immunities, and defenses that either Party may have against third parties. Nothing in this Section 8 benefits or creates rights for third parties. (c) The allocations of risks, Liabilities, and responsibilities set forth in this Section 8 do not release either Party from or affect the liability of either Party for Hazardous Substances claims or actions by regulatory agencies. 8.9 Cleanup. (a) If Grantee’s act, omission, or breach of obligation under Paragraph 8.4 results in a release of Hazardous Substances that exceeds the threshold limits of any applicable regulatory standards, Grantee shall, at Grantee’s sole expense, promptly take all actions necessary or advisable to clean up the Hazardous Substances in accordance with applicable law. (b) If a cleanup is eligible for the Washington State Department of Ecology’s Voluntary Cleanup Program, Grantee may undertake a cleanup of the Easement Property pursuant to the Washington State Department of Ecology’s Voluntary Cleanup Program, provided that Grantee cooperates with the Department of Natural Resources in development of cleanup plans. Grantee shall not proceed with Voluntary Cleanup without the Department of Natural Resources’ approval of final plans. Nothing in the operation of this provision is an agreement by the Department of Natural Resources that the Voluntary Cleanup complies with any laws or with the provisions of this Easement. Grantee’s completion of a Voluntary Cleanup is not a release from or waiver of any obligation for Hazardous Substances under this Easement. 8.10 Sampling by State, Reimbursement, and Split Samples. (a) State may conduct sampling, tests, audits, surveys, or investigations (“Tests”) of the Easement Property at any time to determine the existence, scope, or effects of Hazardous Substances. Page 138 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 15 of 32 Easement No. 51-104551 (b) If such Tests, along with any other information, demonstrate a breach of Grantee’s obligations regarding Hazardous Substances under this Easement, Grantee shall promptly reimburse State for all costs associated with such Tests, provided State gave Grantee thirty (30) days’ advance notice in nonemergencies, and reasonably practical notice in emergencies. (c) In nonemergencies, Grantee is entitled to obtain split samples of Test samples, provided Grantee gives State written notice requesting split samples at least ten (10) days before State conducts Tests. Upon demand, Grantee shall promptly reimburse State for additional cost, if any, of split samples. (d) If either Party conducts Tests on the Easement Property, the conducting Party shall provide the other Party with validated final data and quality assurance/quality control/chain of custody information about the Tests within sixty (60) days of a written request by the other Party, unless Tests are part of a submittal under Paragraph 8.6(c) in which case Grantee shall submit data and information to State without written request by State. Neither party is obligated to provide any analytical summaries or the work product of experts. SECTION 9 NATURE OF ESTATE AND ASSIGNMENT This Easement shall be in gross for the sole benefit of Grantee’s use associated with the Permitted Use. This Easement shall not run with the land. This Easement is indivisible. Grantee shall not sell, convey, mortgage, assign, pledge, grant franchises for, or otherwise transfer or encumber any part of Grantee’s interest in this Easement or any part of Grantee’s interest in the Easement Property without State’s prior written consent, which shall be at State’s sole discretion. State reserves the right to reasonably change the terms and conditions of this Easement upon State’s consent to requests made under this Section 9. SECTION 10 INDEMNITY, INSURANCE, FINANCIAL SECURITY 10.1 Allocation of Responsibility. Each Party shall be responsible for the actions and inactions of itself and its own officers, employees, and agents acting within the scope of their authority. Section 8, Environmental Liability/Risk Allocation, exclusively shall govern Grantee’s liability to State for Hazardous Substances and its obligation to indemnify, defend, and hold harmless State for Hazardous Substances. 10.2 Insurance Terms. (a) Insurance Required. (1) Grantee certifies that on the Commencement Date of this Easement it is a member of a self-insured risk pool for all the liability exposures, its self- insurance plan satisfies all State requirements, and its self-insurance plan provides coverage equal to that required in this Paragraph 10.2 and by Paragraph 10.3, Insurance Types and Limits. Grantee shall provide to State evidence of its status as member of a self-insured risk pool. Upon Page 139 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 16 of 32 Easement No. 51-104551 request by State, Grantee shall provide a written description of its financial condition and/or the self-insured funding mechanism. Grantee shall provide State with at least thirty (30) days’ written notice prior to any material changes to Grantee’s self-insured funding mechanism. If during the Term Grantee’s self-insurance plan fails to provide coverage equal to that required in Paragraph 10.2 and Paragraph 10.3 of this Easement, Grantee shall procure additional commercial insurance coverage to meet the requirements of this Easement. The requirements in Paragraphs 10.2(a)(3) and (4) only apply where the Grantee procures additional commercial insurance to meet the requirements of this Easement. (2) Unless State agrees to an exception, Grantee shall provide insurance issued by an insurance company or companies admitted to do business in the State of Washington and have a rating of A- or better by the most recently published edition of A.M. Best’s Insurance Reports. Grantee may submit a request to the risk manager for the Department of Natural Resources to approve an exception to this requirement. If an insurer is not admitted, the insurance policies and procedures for issuing the insurance policies shall comply with Chapter 48.15 RCW and 284-15 WAC. (3) All general liability, excess, umbrella, and pollution legal liability insurance policies must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as an additional insured by way of endorsement. (4) All property, builder’s risk, and equipment breakdown insurance must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as loss payees. (5) All insurance provided in compliance with this Easement must be primary as to any other insurance or self-insurance programs afforded to or maintained by State. (b) Waiver. (1) Grantee waives all rights against State for recovery of damages to the extent insurance maintained pursuant to this Easement covers these damages. (2) Except as prohibited by law, Grantee waives all rights of subrogation against State for recovery of damages to the extent that they are covered by insurance maintained pursuant to this Easement. (c) Proof of Insurance. (1) Grantee shall provide State with a certificate(s) and endorsement(s) of insurance executed by a duly authorized representative of each insurer, showing compliance with insurance requirements specified in this Easement and, if requested, copies of policies to State. (2) The certificate(s) of insurance must reference the Easement number. (3) Receipt of such certificates, endorsements, or policies by State does not constitute approval by State of the terms of such policies. Page 140 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 17 of 32 Easement No. 51-104551 (d) State must receive written notice before cancellation or non-renewal of any insurance required by this Easement, as follows: (1) Insurers subject to RCW 48.18 (admitted and regulated by the Insurance Commissioner): If cancellation is due to non-payment of premium, provide State ten (10) days’ advance notice of cancellation; otherwise, provide State forty-five (45) days’ advance notice of cancellation or non- renewal. (2) Insurers subject to RCW 48.15 (surplus lines): If cancellation is due to non-payment of premium, provide State ten (10) days’ advance notice of cancellation; otherwise, provide State twenty (20) days’ advance notice of cancellation or non-renewal. (e) Adjustments in Insurance Coverage. (1) State may impose changes in the limits of liability for all types of insurance as State deems necessary. (2) Grantee shall secure new or modified insurance coverage within thirty (30) days after State requires changes in the limits of liability. (f) If Grantee fails to procure and maintain the insurance required in this Easement within fifteen (15) days after Grantee receives a notice to comply from State, State may either: (1) Terminate this Easement, or (2) Procure and maintain comparable substitute insurance and pay the premiums. Upon demand, Grantee shall pay to State the full amount paid by State, together with interest at the rate provided in Paragraph 6.3 from the date of State’s notice of the expenditure until Grantee’s repayment. (g) General Terms. (1) State does not represent that coverage and limits required under this Easement are adequate to protect Grantee. (2) Coverage and limits do not limit Grantee’s liability for indemnification and reimbursements granted to State under this Easement. (3) The Parties shall use any insurance proceeds payable by reason of damage or destruction to Easement Property first to restore the Easement Property, then to pay the cost of the reconstruction, then to pay State any sums in arrears, and then to Grantee. 10.3 Insurance Types and Limits. (a) General Liability Insurance. (1) Grantee shall maintain commercial general liability insurance (CGL) or marine general liability (MGL) covering claims for bodily injury, personal injury, or property damage arising on the Easement Property and/or arising out of the Permitted Use and, if necessary, commercial umbrella insurance with a limit of not less than One Million Dollars ($1,000,000) per each occurrence. If such CGL or MGL insurance contains aggregate limits, the general aggregate limit must be at least twice the “each occurrence” limit. CGL or MGL insurance must have products-completed Page 141 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 18 of 32 Easement No. 51-104551 operations aggregate limit of at least two times the “each occurrence” limit. (2) CGL insurance must be written on Insurance Services Office (ISO) Occurrence Form CG 00 01 (or a substitute form providing equivalent coverage). All insurance must cover liability arising out of premises, operations, independent contractors, products completed operations, personal injury and advertising injury, and liability assumed under an insured contract (including the tort liability of another party assumed in a business contract) and contain separation of insured (cross-liability) condition. (3) MGL insurance must have no exclusions for non-owned watercraft. (b) Workers’ Compensation. (1) State of Washington Workers’ Compensation. (i) Grantee shall comply with all State of Washington workers’ compensation statutes and regulations. Grantee shall provide workers’ compensation coverage for all employees of Grantee. Coverage must include bodily injury (including death) by accident or disease, which arises out of or in connection with the Permitted Use or related activities. (ii) If Grantee fails to comply with all State of Washington workers’ compensation statutes and regulations and State incurs fines or is required by law to provide benefits to or obtain coverage for such employees, Grantee shall indemnify State. Indemnity shall include all fines; payment of benefits to Grantee, employees, or their heirs or legal representatives; and the cost of effecting coverage on behalf of such employees. (2) Longshore and Harbor Workers’ and Jones Acts. The Longshore and Harbor Workers’ Act (33 U.S.C. Section 901 et seq.) and/or the Jones Act (46 U.S.C. Section 30104) may require Grantee to provide insurance coverage in some circumstances. Grantee shall ascertain if such insurance is required and, if required, shall maintain insurance in compliance with the law. Grantee is responsible for all civil and criminal liability arising from failure to maintain such coverage. (c) Employers’ Liability Insurance. Grantee shall procure employers’ liability insurance, and, if necessary, commercial umbrella liability insurance with limits not less than One Million Dollars ($1,000,000) each accident for bodily injury by accident and One Million Dollars ($1,000,000) each employee for bodily injury by disease. (d) Builder’s Risk Insurance. (1) Grantee shall procure and maintain in force, or require its contractor(s) to procure and maintain in force, builder’s risk insurance on the entire work during the period construction is in progress and until completion of the project and acceptance by State. Such insurance must be written on a completed form and in an amount equal to the value of the completed Page 142 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 19 of 32 Easement No. 51-104551 Improvements, subject to subsequent modifications to the sum. The insurance must be written on a replacement cost basis. The insurance must name Grantee, all contractors, and subcontractors in the work as insured. (2) Insurance described above must cover or include the following: (i) All risks of physical loss except those specifically excluded in the policy, including loss or damage caused by collapse; (ii) The entire work on the Easement Property, including reasonable compensation for architect’s services and expenses made necessary by an insured loss; (iii) Portions of the work located away from the Easement Property but intended for use at the Easement Property, and portions of the work in transit; (iv) Scaffolding, falsework, and temporary buildings located on the Easement Property; and (v) The cost of removing debris, including all demolition as made legally necessary by the operation of any law, ordinance, or regulation. (3) Grantee or Grantee’s contractor(s) is responsible for paying any part of any loss not covered because of application of a deductible contained in the policy described above. (e) Pollution Legal Liability Insurance. (1) Grantee shall procure and maintain for the duration of this Easement pollution legal liability insurance, including investigation and defense costs, for bodily injury and property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed. Such coverage must also provide for both on-site and off-site cleanup costs, cover gradual and sudden pollution, and include in its scope of coverage natural resource damage claims. The Insurance Certificate must state that the insurer is covering Hazardous Substance removal. Grantee shall maintain coverage in an amount of at least: (i) Two Million Dollars ($2,000,000) each occurrence for Grantee’s operations at the site(s) identified above, and (ii) Five Million Dollars ($5,000,000) general aggregate or policy limit, if any. (2) Such insurance may be provided on an occurrence or claims-made basis. If such coverage is obtained as an endorsement to the CGL or is provided on a claims-made basis, the following additional conditions must be met: (i) The policy must contain no retroactive date, or the retroactive date must precede the Commencement Date of the Easement. (ii) Coverage must either be continuously maintained for a period of five (5) years following the Termination Date of the Easement, or an extended reporting period of at least five (5) years following the Termination Date of the Easement shall be purchased. . Page 143 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 20 of 32 Easement No. 51-104551 10.4 Financial Security. (a) On the Commencement Date of this Easement, Grantee is not required to procure and maintain a corporate security bond or other financial security (“Security”). During the Term, State may require Grantee to procure and maintain Security upon any of the events listed in Paragraph 10.4(c)(1). Grantee’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Easement. (b) All Security must be in a form acceptable to State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writing. Grantee may submit a request to the Risk Manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) As a condition of approval of assignment of this Easement, (ii) Upon a material change in the condition or disposition of any Improvements, or (iii) Upon a change in the Permitted Use. (2) Grantee shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any breach by Grantee in its obligations under this Easement, State may collect on the Security to offset the liability of Grantee to State. Collection on the Security does not (1) relieve Grantee of liability, (2) limit any of State’s other remedies, (3) reinstate the Easement or cure the breach or (4) prevent termination of the Easement because of the breach. SECTION 11 MAINTENANCE AND REPAIR 11.1 State’s Repairs. State shall not be required to make any alterations, maintenance, replacements, or repairs in, on, or about the Easement Property, or any part thereof, during the Term. 11.2 Grantee’s Repairs and Maintenance. (a) Grantee shall, at its sole cost and expense, keep and maintain the Easement Page 144 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 21 of 32 Easement No. 51-104551 Property and all Grantee-Owned Improvements in good order and repair, in a clean, attractive, and safe condition. Grantee shall repair all damage caused or permitted by Grantee to Improvements Owned by Others on the Easement Property. (b) Grantee shall, at its sole cost and expense, make any and all additions, repairs, alterations, maintenance, replacements, or changes to the Easement Property or to any Grantee-Owned Improvements on the Easement Property that may be required by any public authority having jurisdiction over the Easement Property and requiring it for public health, safety and welfare purposes. (c) Except as provided in Paragraph 11.2(d), all additions, repairs, alterations, maintenance, replacements or changes to the Easement Property and to any Grantee-Owned Improvements on the Easement Property shall be made in accordance with, and ownership shall be governed by, Section 7 above. (d) Routine maintenance and repair are acts intended to prevent a decline, lapse, or cessation of the Permitted Use and associated Grantee-Owned Improvements. Routine maintenance or repair that does not require regulatory permits does not require authorization from State pursuant to Section 7. (e) Upon completion of maintenance activities, Grantee shall remove all debris and restore the Easement Property to the condition prior to the commencement of Work. SECTION 12 DAMAGE OR DESTRUCTION 12.1 Damage to Improvements. (a) In the event of any damage to or destruction of any Improvements on the Easement Property, Grantee shall immediately notify State, with subsequent written notice to State within five (5) days. (b) Grantee shall be solely responsible for any reconstruction, repair, or replacement of any Grantee-Owned Improvements. If Grantee elects not to reconstruct, repair, or replace all or a portion of any damaged Improvements, Grantee shall promptly remove any damaged or destroyed Improvements and restore the Easement Property. Any reconstruction, repair, or replacement of Improvements is governed by Section 7 Improvements, Personal Property, and Work, and Section 11, Maintenance and Repair, and any Additional Obligations in Exhibit B. (c) If Grantee is in breach of this Easement at the time damage or destruction occurs to Grantee-Owned Improvements, State may elect to terminate the Easement without giving Grantee an opportunity to cure, and State may retain any insurance proceeds payable as a result of the damage or destruction. 12.2 Damage to Land or Natural Resources (a) In the event of any damage to or destruction to the land or natural resources on the Easement Property, Grantee shall immediately notify State, with subsequent Page 145 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 22 of 32 Easement No. 51-104551 written notice to State within five (5) days. In the event of any damage or destruction to land or natural resources on adjacent state-owned aquatic lands that is attributable to Grantee’s use of the Property, to the Permitted Use, or to related activities, Grantee shall immediately notify State, with subsequent written notice to State within five (5) days. (b) Grantee, at Grantee’s sole cost, shall remedy any damages to land or natural resources on the Easement Property and adjacent state-owned aquatic lands that are attributable to Grantee’s use of the Property, the Permitted Use, or related activities, in accordance with a plan approved by State. Grantee shall also compensate State for any lost or damaged natural resource values in accordance with Paragraph 12.2(c). (c) Compensation for lost resource values: (1) If damages to the land or natural resources result in lost or damaged natural resource values, Grantee shall compensate State with (1) monetary compensation; (2) the completion of a project approved by State that includes replacing, enhancing, or otherwise providing in-kind habitats, resources, or environments on other state-owned aquatic lands in order to offset the damage and impacts; or (3) a mixture of both monetary compensation and a project. State shall have the discretion to determine if Grantee will compensate with monetary compensation, a project, or both. If State requires monetary compensation, the value of damages shall be determined in accordance with Paragraph 12.2(c)(2). If State requires monetary compensation under Paragraph 12.2(c)(1), unless the Parties otherwise agree on the value, a three-member panel of professional appraisers or resource economists will determine the measure of lost resource values, and issue a written decision. The appraisers or resource economists shall be qualified to assess economic value of natural resources. State and Grantee each shall appoint and compensate one member of the panel. By consensus, the two appointed members shall select the third member, who will be compensated by State and Grantee equally. The panel shall base the calculation of compensation on generally accepted valuation principles. The written decision of the majority of the panel shall bind the Parties. (d) If damage to land or natural resources on the Easement Property or adjacent state- owned aquatic lands are attributable to Grantee’s use of the Property, to the Permitted Use, or to related activities, or if such damage occurs when Grantee is in breach of the Easement, State may elect to terminate the Easement in accordance with Section 14. If State elects to terminate the Easement, Grantee is still responsible for restoring any damages to land or natural resources on the Easement Property and adjacent state-owned aquatic lands, and for compensating State for any lost resource values in accordance with Paragraph 12.2(c). State may retain any insurance proceeds payable as a result of the damage or destruction. (e) State may, with or without terminating the Easement, at the sole expense of Grantee, remedy any damages and complete a project that offsets lost or damaged Page 146 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 23 of 32 Easement No. 51-104551 natural resource values. If State takes any such actions, upon demand by State, Grantee shall pay all costs incurred by State. 12.3 State’s Waiver of Claim. State does not waive any claims for damage or destruction of the Easement Property or adjacent state-owned aquatic lands unless State provides written notice to Grantee of each specific claim waived. 12.4 Insurance Proceeds. Grantee’s duties under Paragraphs 12.1 and 12.2 are not conditioned upon the availability of any insurance proceeds to Grantee from which the cost of repairs may be paid. The Parties shall use insurance proceeds in accordance with Paragraph 10.2(g)(3). SECTION 13 CONDEMNATION In the event of condemnation, the Parties shall allocate the condemnation award between State and Grantee based upon the ratio of the fair market value of (1) Grantee’s rights in the Easement Property and Grantee-Owned Improvements and (2) State’s interest in the Easement Property; the reversionary interest in Grantee-Owned Improvements, if any; and State-Owned Improvements, if any. In the event of a partial taking, the Parties shall compute the ratio based on the portion of Easement Property or Improvements taken. If Grantee and State are unable to agree on the allocation, the Parties shall submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association. SECTION 14 REMEDIES AND TERMINATION 14.1 Termination by Breach. State may terminate this Easement upon Grantee’s failure to cure a breach of the terms and conditions of this Easement. Unless otherwise stated in this Easement, State shall provide Grantee written notice of breach, and Grantee shall have sixty (60) days after receiving the notice to cure the breach. State may extend the cure period if breach is not reasonably capable of cure within sixty (60) days. This sixty (60) day cure period does not apply where State terminates this Easement under Paragraph 10.2(f) or Section 12. 14.2 Termination by Nonuse. If Grantee does not use the Easement Property for a period of three (3) successive years, this Easement terminates without further action by State and Grantee’s rights revert to State. Grantee shall still be responsible for complying with all end of Term requirements. 14.3 Termination by Grantee. Grantee may terminate this Easement upon providing State with sixty (60) days written notice of intent to terminate. If Grantee terminates under this Paragraph, the date of Grantee’s termination shall be deemed the Termination Date and Grantee shall comply with all end of Term requirements. Grantee is not entitled to any refunds of Easement fees already paid to State. Page 147 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 24 of 32 Easement No. 51-104551 14.4 Remedies Not Exclusive. The remedies specified under this Section 14 are not exclusive of any other remedies or means of redress to which State is lawfully entitled for Grantee’s breach or threatened breach of any provision of this Easement. SECTION 15 NOTICE AND SUBMITTALS 15.1 Notice. Following are the locations for delivery of notice and submittals required or permitted under this Easement. Any Party may change the place of delivery upon ten (10) days’ written notice to the other. State: DEPARTMENT OF NATURAL RESOURCES Aquatic Resources, Rivers District 601 Bond Rd | P.O. Box 280 Castle Rock, WA 98611 Grantee: CITY OF PASCO PUBLIC WORKS 525 N. 3rd Avenue Pasco, WA 99301 The Parties may deliver any notice in person, by facsimile machine, or by certified mail. Depending on the method of delivery, notice is effective upon personal delivery, upon receipt of a confirmation report if delivered by facsimile machine, or three (3) days after mailing. All notices must identify the Easement number. On notices transmitted by facsimile machine, the Parties shall state the number of pages contained in the notice, including the transmittal page, if any. 15.2 Contact Persons. On the Commencement Date, the following persons are designated day-to-day contact persons. Any Party may change the Contact Person upon reasonable notice to the other. State: DEPARTMENT OF NATURAL RESOURCES Aquatic Resources, Rivers District 360-748-2387 rivers@dnr.wa.gov Grantee: CITY OF PASCO PUBLIC WORKS Jon Padvorac, City Engineer 509-545-3445 padvoracj@pasco-wa.gov SECTION 16 MISCELLANEOUS Page 148 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 25 of 32 Easement No. 51-104551 16.1 Authority. Grantee and the person or persons executing this Easement on behalf of Grantee represent that Grantee is qualified to do business in the State of Washington, that Grantee has full right and authority to enter into this Easement, and that each and every person signing on behalf of Grantee is authorized to do so. Upon State’s request, Grantee shall provide evidence satisfactory to State confirming these representations. 16.2 Successors and Assigns. Subject to the limitations set forth in Section 9, this Easement binds and inures to the benefit of the Parties, their successors, and assigns. 16.3 Headings. The headings used in this Easement are for convenience only and in no way define, limit, or extend the scope of this Easement or the intent of any provision. 16.4 Entire Agreement. This Easement, including the exhibits, attachments, and addenda, if any, contains the entire agreement of the Parties. This Easement merges all prior and contemporaneous agreements, promises, representations, and statements relating to this transaction or to the Easement Property. 16.5 Waiver. (a) The waiver of any breach of any term, covenant, or condition of this Easement is not a waiver of such term, covenant, or condition; of any subsequent breach of the same; or of any other term, covenant, or condition of this Easement. State’s acceptance of a payment is not a waiver of any preceding or existing breach other than the failure to pay the particular payment that was accepted. (b) The renewal of the Easement, extension of the Easement, or the issuance of a new Easement to Grantee, does not waive State’s ability to pursue any rights or remedies under the Easement. 16.6 Cumulative Remedies. The rights and remedies of State under this Easement are cumulative and in addition to all other rights and remedies afforded by law or equity or otherwise. 16.7 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Easement. 16.8 Language. The word “Grantee” as used in this Easement applies to one or more persons and regardless of gender, as the case may be. The singular includes the plural, and the neuter includes the masculine and feminine. If there is more than one Grantee, their obligations are joint and several. The word “persons,” whenever used, shall include individuals, firms, associations, and corporations. The word “Parties” means State and Grantee in the collective. The word “Party” means either or both State and Grantee, depending on the context. 16.9 Invalidity. The invalidity, voidness, or illegality of any provision of this Easement does not affect, impair, or invalidate any other provision of this Easement. Page 149 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 26 of 32 Easement No. 51-104551 16.10 Applicable Law and Venue. This Easement is to be interpreted and construed in accordance with the laws of the State of Washington. Venue for any action arising out of or in connection with this Easement is in the Superior Court for Thurston County, Washington. 16.11 Statutory Reference. Any reference to a statute or rule means that statute or rule as presently enacted or hereafter amended or superseded. 16.12 Recordation. At Grantee’s expense and no later than thirty (30) days after receiving the fully-executed Easement, Grantee shall record this Easement in the county in which the Easement Property is located. Grantee shall include the parcel number of the upland property used in conjunction with the Easement Property, if any. Grantee shall provide State with recording information, including the date of recordation and file number. If Grantee fails to record this Easement, State may record this Easement and Grantee shall pay the costs of recording upon State’s demand. 16.13 Modification. No modification of this Easement is effective unless in writing and signed by both Parties. Oral representations or statements do not bind either Party. 16.14 Survival. Any obligations of Grantee not fully performed upon termination of this Easement do not cease, but continue as obligations of the Grantee until fully performed. Page 150 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 27 of 32 Easement No. 51-104551 16.15 Exhibits and Attachments. All referenced exhibits and attachments are incorporated in this Easement unless expressly identified as unincorporated. THIS AGREEMENT requires the signature of all Parties and is effective on the date of the last signature below. CITY OF PASCO PUBLIC WORKS Dated: _____________________, 20__ __________________________________ By: JON PADVORAC Title: City Engineer Address: 525 N. 3rd Avenue Pasco, WA 99301 Phone: 509-545-3445 STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES Dated: _____________________, 20__ __________________________________ By: THOMAS A. GORMAN Title: Aquatic Resources Division Manager Address: 1111 Washington St SE MS 47027 Olympia, WA 98504 Aquatic Lands Easement Template approved as to form this 10th day of January 2022 Jennifer Clements, Assistant Attorney General Page 151 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 28 of 32 Easement No. 51-104551 REPRESENTATIVE ACKNOWLEDGMENT Notarized online using audio-video communication STATE OF ) ) ss. County of ) I certify that I know or have satisfactory evidence that JON PADVORAC is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the City Engineer of the City of Pasco to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. This notarial act involved the use of communication technology. Dated: _____________________, 20__ _________________________________ (Signature) (Seal or stamp) ___________________________________ (Print Name) Notary Public in and for the State of Washington, residing at ___________________________________ My appointment expires _______________ Page 152 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 29 of 32 Easement No. 51-104551 STATE ACKNOWLEDGMENT Notarized online using audio-video communication STATE OF WASHINGTON) ) ss. County of ) I certify that I know or have satisfactory evidence that THOMAS A. GORMAN is the person who appeared before me, and said person acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the Division Manager of Aquatics of the Department of Natural Resources, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. This notarial act involved the use of communication technology. Dated: _____________________, 20__ _________________________________ (Signature) (Seal or stamp) ___________________________________ (Print Name) Notary Public in and for the State of Washington, residing at ___________________________________ My appointment expires _______________ Page 153 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 30 of 32 Easement No. 51-104551 EXHIBIT A PROPERTY DESCRIPTION Agreement Number 51-103464 1. LEGAL DESCRIPTION OF THE PROPERTY: The proposed temporary construction easement is legally described as DNR Easement Application and File No. 51-103464, also in that Record of Survey recorded in Franklin County, Washington on X , 2023 in Book X of Surveys on page X. 2. SQUARE FOOTAGE OF EASEMENT: Total Bedlands: 675,312 Total Square Feet: 675,312 Commented [GS(3]: Edit Once I get the approved and recorded survey. Page 154 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 31 of 32 Easement No. 51-104551 EXHIBIT B 1. DESCRIPTION OF PERMITTED USE A. Existing Facilities. The temporary easement needed for expanded construction is located in Franklin County, Washington, within the Columbia River. The existing 24- inch diameter gravity outfall pipeline and in-river diffuser are at or near capacity due to hydraulic constraint, and will be replaced with a 42-inch diameter high density polyethylene pipe, and new diffuser. B. Proposed Work. State authorizes Grantee to conduct the following Proposed Work on the Easement Property: installation of a temporary work bridge for excavation, excavation and trenching for the area of the outfall pipe, installation of sheet piling with vibratory hammer, installation of approximately six (6) guide piles 24-inch diameter by vibratory hammer, installation of a turbidity curtain, removal and storage of excavated material in an offsite location or within approved uplands areas, installation of quarry spalls, protective rock cover, native backfill, and approved fix mix, and removal of trench sheet piles and guide piles. Grantee’s Proposed Work is considered Work and is subject to the terms and conditions of this Easement. If the Proposed Work is not commenced within five years of the Commencement Date of the Easement, or if Grantee is required to renew, extend, modify, or obtain a new regulatory permit for the Proposed Work, Grantee shall obtain State’s prior written consent before conducting the Proposed Work pursuant to Section 7.3 of the Easement. C. Permits for Proposed Work. Grantee has secured the following permits for the Proposed Work:  SERP (State Environmental Review Process) Submittal, Clean Water Preservation Project, WQC-2021-Pasco-00020 and WQC-2022-Pasco-00044, Department of Ecology, issued September 29, 2022.  National Pollutant Discharge Elimination System (NPDES) Waste Discharge Permit No. WA-004496-2, Department of Ecology, issued June 29, 2010, expires June 30, 2015. Permit has been administratively extended while the Department of Ecology (Ecology) generates a new permit.  Construction Stormwater General Permit: WAR312101, Department of Ecology, issued February 14, 2023.  Letter of Concurrence for Determination of No Historic Properties, Section 106 of the National Historic Preservation Act, DAHP Project Number 2022-04-02720, Department of Ecology, Water Quality Program, issued October 12, 2022.  Hydraulic Project Approval: 2022-3-53+01, Washington Department of Fish and Wildlife, issued November 15, 2022, expires November 14, 2027.  SEPA Checklist, City of Pasco, signed July 5, 2022. Page 155 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Easement (1/10/2022) Page 32 of 32 Easement No. 51-104551  SEPA Notice of Mitigated Determination of Non-Significance: SEPA 2022-069, City of Pasco, issued July 27, 2022.  Shoreline Substantial Development and Conditional Use permit (includes Critical Areas): SMP 2022-003, City of Pasco, issued August 18, 2022.  Biological Opinion and Letter of Concurrence: FWS/R1/2022-0036919, United States Department of the Interior Fish and Wildlife, issued September 27, 2022.  Nationwide Permit 1 and 7: NWS-2022-223, Department of Army Corp of Engineers, issued September 15, 2022, expires March 14, 2027 (includes DOE 401 and CZMA certification).  Tier 1 Antidegradation Evaluation for the City of Pasco WWTP Clean Water Preservation Project Phase 2 in Pasco, Washington, USACE Reference # NWS- 2022-223, Dredged Material Management Office (DMMP), issued May 20, 2022.  Endangered Species Act Biological Opinion: WCRO-2022-01039, United States Department of Commerce National Oceanic and Atmospheric Administration (NOAA), issued November 17, 2022.  Private Aids to Navigation (PATON) Permit, United States Coast Guard, issued October 25, 2022. 2. ADDITIONAL OBLIGATIONS None. Page 156 of 273 Resolution WWTP – DNR Term Aquatic Easement for PH 2A - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE THE AQUATIC LANDS OUTFALL EASEMENT NO. 51-103464 WITH THE STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES FOR THE WASTEWATER TREATMENT PLANT OUTFALL PIPE. WHEREAS, the City of Pasco (City) desires to operate a 42-inch diameter wastewater treatment plant outfall pipe with appurtenances to discharge effluent into the Columbia River; and WHEREAS, the outfall pipe and appurtenances are partially located within aquatic lands owned by the State of Washington (State); and WHEREAS, the State, acting through the Department of Natural Resources (DNR), requires a term easement which will allow the City to operate said outfall and appurtenances on State owned aquatic lands within the Columbia River; and WHEREAS, the City applied for a term easement and received approval from the DNR to operate said outfall pipe and appurtenances to discharge effluent into the Columbia River for a period of thirty (30) years; and WHEREAS, the fee associated with the Aquatic Lands Outfall Easement No. 51-103464 is $1,870.00; and WHEREAS, the City and its consultants consider this a reasonable value and a prudent use of public resources. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute the Aquatic Lands Outfall Easement No. 51-103464 with the State of Washington Department of Natural Resources in substantially the same form as a copy attached hereto and incorporated herein by this reference as Exhibit A; and to make minor substantive changes as necessary to execute the Easement. Be It Further Resolved that this Resolution shall take effect and be in full force immediately upon passage by the City Council. Page 157 of 273 Resolution WWTP – DNR Term Aquatic Easement for PH 2A - 2 PASSED by the City Council of the City of Pasco, Washington, on this 17th day of July, 2023. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 158 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 1 of 35 Easement No. 51-103464 When recorded, return to: Attn: Jon Padvorac City of Pasco Public Works 525 N. 3rd Avenue Pasco, Washington 99301 AQUATIC LANDS OUTFALL EASEMENT EASEMENT NO. 51-103464 Grantor: Washington State Department of Natural Resources Grantee(s): City of Pasco Public Works Abbreviated Legal Description: SW1/4 SE1/4, NW1/4 SE1/4, SE1/4 SW1/4, NE1/4 SW1/4 Section 32, Township 9 North, Range 30 East,W.M. Complete Legal Description on Page 32 Auditor Reference Number(s) TBD Assessor’s Property Tax Parcel or Account Number: Not Applicable Assessor’s Property Tax Parcel or Account Number for Upland parcel used in conjunction with this Easement: Not Applicable THIS EASEMENT is made by and between the STATE OF WASHINGTON, acting through the Department of Natural Resources (“State”), and CITY OF PASCO, a government agency (“Grantee”). State has authority to enter into this Easement under Chapter 43.12 RCW, Chapter 43.30 RCW, and Title 79 of the Revised Code of Washington (RCW). BACKGROUND Commented [GS(1]: Need the final recorded ROS (Record of Survey) Page 159 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 2 of 35 Easement No. 51-103464 Grantee desires to use state-owned aquatic lands located in Frankling County, Washington for the purpose of discharging effluent from an outfall pipeline. Grantee has obtained the necessary regulatory authorizations for this purpose including, but not limited to, a National Pollutant Discharge Elimination System (“NPDES”) Permit. State is willing to grant an easement for a term to Grantee in reliance upon Grantee’s promises to operate the outfall and conveyance system in compliance with all laws and permits and in the manner as described in all regulatory authorizations. State’s goals are to promote water re-use and reduce reliance on in-water disposal of waste effluent, storm water, and other discharges that affect the use and environmental conditions of state-owned aquatic lands and associated biological communities. THEREFORE, the Parties agree as follows: SECTION 1 GRANT OF EASEMENT 1.1 Easement Defined. (a) State grants and conveys to Grantee a nonexclusive in gross easement, subject to the terms and conditions of this agreement, over, upon, and under those bedlands and 1st class shorelands of the Columbia River legally described in Exhibit A (“Easement Property”). In this agreement, the term “Easement” means this agreement and the rights granted. (b) This Easement is subject to all valid interests of third parties noted in the records of Frankin County, or on file in the Office of the Commissioner of Public Lands, Olympia, Washington; rights of the public under the Public Trust Doctrine or federal navigation servitude; and treaty rights of Indian Tribes. (c) This Easement does not include any right to harvest, collect or damage any natural resources, including, but not limited to, aquatic life or living plants; any water rights; any mineral rights; or any right to excavate or withdraw sand, gravel, or other valuable materials, except to the extent expressly permitted in Exhibit B. (d) This Easement is not exclusive. State may enter and use the Easement Property for any purpose or permit others to enter and use the Easement Property for any purpose so long as such use does not unreasonably interfere with the rights granted herein. 1.2 Survey and Easement Property Descriptions. (a) Grantee’s obligation to provide a true and accurate description of the Easement Property, and the location of the Improvements to be constructed is a material term of this Easement. Grantee warrants that the record of survey referenced in Exhibit A includes a true and accurate description of the Easement Property, and the location of the Improvements to be constructed. Page 160 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 3 of 35 Easement No. 51-103464 (b) Unless State has given Grantee written authorization to use such lands, Grantee’s use of any state-owned aquatic lands outside the Easement Property boundaries is a material breach of this Easement and State may seek remedies under Section 14 of this Easement in addition to any other remedies afforded by law or equity or otherwise. 1.3 Condition of Easement Property. State makes no representation regarding the condition of the Easement Property, Improvements located on the Easement Property, the suitability of the Easement Property for Grantee’s Permitted Use, compliance with governmental laws and regulations, availability of utility rights, access to the Easement Property, or the existence of hazardous substances on the Easement Property. 1.4 Documentation of Easement Property Condition. (a) To the extent satisfactory to State, Grantee shall film the condition and appearance of the Easement Property within one hundred eighty days (180) days of the Commencement Date, documenting the condition of both the water surface and the underwater land. Grantee shall provide a true copy of such film and sworn inspection report to State within three hundred sixy-five (365) days of the Commencement Date. (b) Within one hundred eighty days (180) days days before the Termination Date, or within one hundred eighty days (180) days days after receiving a valid early notice to terminate, Grantee shall film the appearance of the Easement Property to the same extent as documented at the beginning of Term. Grantee shall provide a true copy of such documentation to State within three hundred sixy-five (365) days days after the completion of the filming. SECTION 2 USE 2.1 Permitted Use. This Easement is granted for the purpose of and is limited to: One (1) 42-inch diameter high-density polyethylene (HDPE) pipe utilized for discharge of waste water treatment effluent (the “Permitted Use”). Exhibit B includes additional details about the Permitted Use, the Easement Property, and the Improvements. Exhibit B also includes additional obligations on Grantee. The Permitted Use is subject to the restrictions and additional obligations set forth in this Easement. The Permitted Use of this Easement shall not be changed or modified without the written consent of State, which shall be at State’s sole discretion. 2.2 Restrictions on Permitted Use and Operations. (a) Grantee shall not cause or permit: Page 161 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 4 of 35 Easement No. 51-103464 (1) Damage to land or natural resources on the Easement Property or adjacent state-owned aquatic lands, regardless of whether the damages are a direct or indirect result of the Permitted Use. (2) Waste on the Easement Property or adjacent state-owned aquatic lands; or (3) Deposit of material or filling activity on the Easement Property or adjacent state-owned aquatic lands, unless approved by State in writing and except to the extent expressly permitted in Exhibit B. This prohibition includes, but is not limited to, any deposit of fill, rock, earth, ballast, wood waste, refuse, garbage, waste matter (including, but not limited to, chemical, biological, or toxic wastes), hydrocarbons, pollutants, or other matter. (b) Nothing in this Easement shall be interpreted as an authorization to dredge the Easement Property. (c) Grantee shall immediately notify State if Grantee breaches any of the terms and conditions of this Easement. (d) State’s failure to notify Grantee of Grantee’s failure to comply with all or any of the restrictions set out in this Paragraph 2.2 does not constitute a waiver of any remedies available to State. (e) Grantee’s compliance with the restrictions in this Paragraph 2.2 does not limit Grantee’s liability under any other provision of this Easement or the law. 2.3 Conformance with Laws. Grantee shall keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding Grantee’s use of the Easement Property. 2.4 Liens and Encumbrances. Unless expressly authorized by State in writing, Grantee shall keep the Easement Property free and clear of any liens and encumbrances arising out of or relating to the Permitted Use or Grantee’s use of the Easement Property. 2.5 Interference with Other Uses. (a) Grantee shall exercise Grantee’s rights under this Easement in a manner that minimizes or avoids interference with the rights of State, the public, or others with valid rights to use or occupy the Easement Property or surrounding lands and water. (b) To the fullest extent reasonably possible, Grantee shall place and construct Improvements in a manner that allows unobstructed movement in and on the waters above and around the Easement Property. (c) Except in an emergency, Grantee shall provide State with written notice regarding the start of construction or other Significant Activity on the Easement Property at least sixty (60) days in advance (“Notice of Significant Activity”). “Significant Activity” means any activity that may affect the use or enjoyment of the Easement Property or adjacent state-owned aquatic lands by the State of Washington, public, or others with valid rights to use or occupy the Easement Property or adjacent state-owned aquatic lands. Page 162 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 5 of 35 Easement No. 51-103464 (d) Grantee shall mark the location of any hazards associated with the Permitted Use and any hazards associated with the Improvements in a manner that ensures reasonable notice to the public, including but not limited to, boaters, kayakers, swimmers, and divers. Grantee shall mark the location and limits of the Improvements located on the Easement Property. The signs and notices shall identify the type of installation (e.g., an outfall pipe), identify Grantee as the entity responsible for the Permitted Use and its maintenance, and be posted in location that gives reasonable notice to the public. When required by applicable law or regulation Grantee shall facilitate amendment of official navigational charts to indicate existence and location of submerged Improvements. 2.6 Amendment Upon Change of Permit Status. State reserves the right to amend the terms and conditions of this Easement whenever any regulatory authority (1) modifies a permit in a manner affecting the provisions of this Easement; or (2) allows for a change in the manner of outfall operation including, but not limited to, a change in the type, quality, or quantity of discharge. Nothing in this Paragraph or Easement shall be deemed to allow Grantee to change the type, quality, or quantity of discharge without first obtaining the consent of State. SECTION 3 TERM 3.1 Term Defined. The term of this Easement is thirty (30) years, beginning on the [___] day of [_______], 20[__] (the “Commencement Date”), and ending on the [___] day of [_______], 20[__] (the “Termination Date”), unless terminated sooner under the terms of this Easement (the “Term”). Whenever the phrase “termination of this Easement” or “termination of the Easement” is used in this Easement, it shall refer to the ending, termination, cancellation, or expiration of the Easement. 3.2 Renewal of Easement and/or Application for New Easement. (a) This Easement does not provide a right of renewal. Grantee may apply for a new Easement, which State has discretion to grant. Grantee must apply for a new Easement at least one (1) year prior to Termination Date. 3.3 End of Term. (a) Removal of Improvements: Prior to the termination of this Easement, Grantee shall remove Improvements in accordance with Section 7. (b) Restoration of the Easement Property: (1) Prior to the termination of this Easement, Grantee shall restore the Easement Property to its condition prior to Grantee’s Use of the Easement Property. (2) Restoration of the Easement Property is to be done at Grantee’s expense and to the satisfaction of State. Restoration of the Easement Property is considered to be Work, as described in Section 7 of the Easement. Commented [GS(2]: Date will be determined closer to execution of contract. Page 163 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 6 of 35 Easement No. 51-103464 Grantee’s plans for restoring the Easement Property shall be submitted to State for prior approval in accordance with Section 7 of this Easement. (3) If Permittee fails to restore the condition of the Easement Property as required by this Paragraph, State may take steps reasonably necessary to remedy Permittee’s failure. Upon demand by State, Permittee shall pay all costs of State’s remedy, lost revenue resulting from the condition of the Easement Property, and administrative costs associated with State’s remedy. (c) Vacation of Property: Upon the termination of this Easement, Grantee shall cease all operations on and use of the Easement Property. SECTION 4 FEES 4.1 Fee. For the Term, Grantee shall pay to State an administrative fee calculated in accordance with RCW 79.110.240 of One Thousand Eight Hundred Seventy Dollars and 00/100 ($1,870.00), which is due and payable on or before the Commencement Date. Any payment not paid by State’s close of business on the date due is past due. 4.2 Payment Place. Grantee shall make payment to Financial Management Division, 1111 Washington St SE, PO Box 47041, Olympia, WA 98504-7041. SECTION 5 OTHER EXPENSES 5.1 Utilities. Grantee shall pay all fees charged for utilities required or needed by the Permitted Use. 5.2 Taxes and Assessments. Grantee shall pay all taxes, assessments, and other governmental charges applicable or attributable to the Easement, the Grantee-Owned Improvements, or the Permitted Use. 5.3 Proof of Payment. If required by State, Grantee shall furnish to State receipts or other appropriate evidence establishing the payment of amounts this Easement requires Grantee to pay. SECTION 6 LATE PAYMENTS AND OTHER CHARGES 6.1 Failure to Pay. Failure to pay any fees or other expenses due under this Easement is a breach by Grantee. State may seek remedies in Section 14 as well as late charges and interest as provided in this Section 6. In addition, if Grantee fails to pay any amounts due to third parties under this Easement, State may pay the amount due, and recover its cost in accordance with this Section 6. Page 164 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 7 of 35 Easement No. 51-103464 6.2 Late Charge. If State does not receive any payment within ten (10) days of the date due, Grantee shall pay to State a late charge equal to four percent (4%) of the unpaid amount or Fifty Dollars ($50), whichever is greater, to defray the overhead expenses of State incident to the delay. 6.3 Interest Penalty for Past Due Fees and Other Sums Owed. (a) Grantee shall pay interest on the past due fees at the rate of one percent (1%) per month until paid, in addition to paying the late charges determined under Paragraph 6.2. Fees not paid by the close of business on the due date will begin accruing interest the day after the due date. (b) If State pays or advances any amounts for or on behalf of Grantee, Grantee shall reimburse State for the amount paid or advanced and shall pay interest on that amount at the rate of one percent (1%) per month from the date State notifies Grantee of the payment or advance. This includes, but is not limited to State’s payment of taxes, assessments, insurance premiums, costs of removal and disposal of unauthorized materials, costs of removal and disposal of Improvements under any provision of this Easement, or other amounts not paid when due. 6.4 Referral to Collection Agency and Collection Agency Fees. If State does not receive full payment within thirty (30) days of the due date, State may refer the unpaid amount to a collection agency as provided by RCW 19.16.500 or other applicable law. Upon referral, Grantee shall pay collection agency fees in addition to the unpaid amount. 6.5 No Accord and Satisfaction. If Grantee pays, or State otherwise receives, an amount less than the full amount then due, State may apply such payment as it elects. State may accept payment in any amount without prejudice to State’s right to recover the balance or pursue any other right or remedy. No endorsement or statement on any check, any payment, or any letter accompanying any check or payment constitutes accord and satisfaction. SECTION 7 IMPROVEMENTS, PERSONAL PROPERTY, AND WORK 7.1 Improvements and Personal Property Defined. (a) “Improvements,” consistent with RCW 79.105 through 79.140, are additions within, upon, or attached to the Easement Property. Improvements include, but are not limited to, fill, structures, and fixtures. (b) “Personal Property” means items that can be removed from the Easement Property without (1) injury to the Easement Property, adjacent state-owned lands or Improvements; or (2) diminishing the value or utility of the Easement Property, adjacent state-owned lands, or Improvements. (c) “State-Owned Improvements” are Improvements made or owned by the State of Washington. State-Owned Improvements include any construction, alteration, or addition to State-Owned Improvements made by Grantee. Page 165 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 8 of 35 Easement No. 51-103464 (d) “Grantee-Owned Improvements” are (1) Improvements owned by Grantee that are existing on the Easement Property on the Commencement Date or (2) Improvements made by Grantee with State’s consent. (e) “Unauthorized Improvements” are Improvements made on the Easement Property during the Term without State’s prior consent or Improvements made by Grantee that do not conform with plans submitted to and approved by State. (f) “Improvements Owned by Others” are Improvements made by others with a right to occupy or use the Easement Property or adjacent state-owned lands. 7.2 Existing Improvements. On the Commencement Date there are no Improvements located on the Easement Property. 7.3 Construction, Major Repair, Modification, and Other Work. (a) This Paragraph 7.3 governs construction, alteration, replacement, major repair, modification, and removal of Improvements (collectively “Work”). (b) Except in an emergency, Grantee shall not conduct any Work without State’s prior written consent. Grantee shall obtain State’s prior written consent as follows: (1) Grantee shall submit to State plans and specifications describing the proposed Work and any design plans and specifications developed pursuant to Washington Department of Ecology laws and rules for discharges at least sixty (60) days before submitting permit applications to regulatory authorities, unless Grantee and State otherwise agree to coordinate permit applications. At a minimum, or if no permits are necessary, Grantee shall submit plans and specifications to State at least ninety (90) days before commencement of Work. Grantee shall submit the following additional information to State with Grantee’s plans and specifications: (a) Grantee shall submit the mixing zone analysis for new or reconstructed outfalls prepared by the Washington State Department of Ecology in accordance with the Department of Ecology Water Quality Program Permit Writer’s Manual Publication No. 92-109 Appendix C. (b) Grantee shall include documentation that the designs and specifications of the outfall are consistent with Department of Ecology Criteria for Sewage Works Design (Publication #98-37). If State, Department of Ecology, or any other regulatory agency establishes different standards, Grantee shall meet the most protective standard. (2) State may deny consent if State determines that denial is in the best interests of the State of Washington, or if the proposed Work does not comply with Paragraph 7.4. State may impose additional conditions Page 166 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 9 of 35 Easement No. 51-103464 intended to protect and preserve the Easement Property or adjacent state- owned aquatic lands. (c) Grantee shall immediately notify State of emergency Work. Upon State’s request, Grantee shall provide State with as built plans and specifications of emergency Work. (d) Grantee shall not commence Work until Grantee or Grantee’s contractor has: (1) Obtained a performance and payment bond in an amount equal to one hundred twenty-five percent (125%) of the estimated cost of construction. Grantee or Grantee’s contractor shall maintain the performance and payment bond until the costs of the Work, including all laborers and material persons, are paid in full. (2) Obtained all required permits. (3) Provided Notice of Significant Activity in accordance with Paragraph 2.5(c). (e) Grantee shall preserve and protect Improvements Owned by Others, if any. (f) Grantee shall preserve all legal land subdivision survey markers and witness objects (“Markers”). If disturbance of a Marker will be a necessary consequence of Grantee’s construction, Grantee shall reference and/or replace the Marker in accordance with all applicable laws and regulations current at the time, including, but not limited to Chapter 58.24 RCW. At Grantee’s expense, Grantee shall retain a registered professional engineer or licensed land surveyor to reestablish destroyed or disturbed Markers in accordance with United States General Land Office standards. (g) Before completing Work, Grantee shall remove all debris and restore the Easement Property, as nearly as possible, to its natural condition before the Work began. If Work is intended for removal of Improvements at End of Term, Grantee shall restore the Easement Property in accordance with Paragraph 3.3, End of Term. (h) Upon completing Work, Grantee shall promptly provide State with as-built plans and specifications. State may also require Grantee to obtain an updated record of survey showing the Easement Property boundaries and the as-built location of all Improvements on the Easement Property. (i) State shall not charge additional fees for authorized Improvements installed by Grantee on the Easement Property during this Term, but State may charge additional fees for such Improvements if and when the Grantee or successor obtains a subsequent use authorization for the Easement Property and State has waived the requirement for removal of Improvements as provided in Paragraph 7.5. 7.4 Standards for Work. (a) Applicability of Standards for Work. (1) The standards for Work in Paragraph 7.4(b) apply to Work commenced in the five-year period following the Commencement Date. Work commences when State approves plans and specifications. Page 167 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 10 of 35 Easement No. 51-103464 (2) If Grantee commences Work five years or more after the Commencement Date, Grantee shall comply with State’s then-current standards for Work. (3) If Grantee commences Work five years or more after the Commencement Date, Grantee shall ascertain State’s current standards for Work as follows: (i) Before submitting plans and specifications for State’s approval as required by Paragraph 7.3 of the Easement, Grantee shall request State to provide Grantee with State’s current standards for Work on state-owned aquatic lands. (ii) Within thirty (30) days of receiving Grantee’s request, State shall provide Grantee with State’s current standards for Work, which will be effective for the purpose of State’s approval of Grantee’s proposed Work, provided Grantee submits plans and specifications for State’s approval within two (2) years of Grantee’s request for standards. (iii) If State does not timely provide State’s current standards for Work upon Grantee’s request, the standards for Work under Paragraph 7.4(b) apply to Grantee’s Work, provided Grantee submits plans and specifications as required by Paragraph 7.3 within two (2) years of Grantee’s request for State’s current standards for Work. (iv) If Grantee fails to (1) make a request for State’s current standards for Work; or (2) timely submit plans and specifications to State after receiving State’s current standards for Work, Grantee, at Grantee’s sole expense, shall make changes in plans or Work necessary to conform to State’s current standards for Work upon State’s demand. (b) The following standards for Work apply to Work commenced in the five-year period following the Commencement Date. (1) Grantee shall only conduct in-water Work during time periods authorized for such work under WAC 220-660-110, Authorized Work Times in Freshwater Areas, or as otherwise directed by the Washington Department of Fish and Wildlife (WDFW) AND National Marine Fisheries Service (NMFS). 7.5 Grantee-Owned Improvements at End of Easement. (a) Disposition. (1) Grantee shall remove Grantee-Owned Improvements in accordance with Paragraph 7.3 upon the termination of the Easement unless State waives the requirement for removal. (2) Grantee-Owned Improvements remaining on the Easement Property on the termination of the Easement shall become State-Owned Improvements without payment by State, unless State elects otherwise. State may refuse or waive ownership. Page 168 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 11 of 35 Easement No. 51-103464 (3) If Grantee-Owned Improvements remain on the Easement Property after the termination of the Easement without State’s consent, State may remove all Improvements and Grantee shall pay State’s costs of removal and disposal. (b) Conditions Under Which State May Waive Removal of Grantee-Owned Improvements. (1) State may waive removal of any Grantee-Owned Improvements whenever State determines that it is in the best interests of the State of Washington. (2) If Grantee enters into a new Easement, State may waive requirement to remove Grantee-Owned Improvements. State also may consent to Grantee’s continued ownership of Grantee-Owned Improvements. If the Grantee-Owned Improvements are no longer used as part of an operational or active outfall, State may condition its waiver of removal on Grantee entering into a new Easement for the storage of the Grantee-Owned Improvements. (3) State may waive requirement to remove Grantee-Owned Improvements upon consideration of a timely request from Grantee, as follows: (i) Grantee shall submit its request to leave Grantee-Owned Improvements to State at least one (1) year before the Termination Date. (ii) State, within ninety (90) days of receiving Grantee’s request, will notify Grantee whether State consents to any Grantee-Owned Improvements remaining. State has no obligation to grant consent. (iii) State’s failure to respond to Grantee’s request to leave Improvements within ninety (90) days is a denial of the request (c) Grantee’s Obligations if State Waives Removal. (1) Grantee shall not remove a Grantee-Owned Improvement if State waives the requirement for removal of that Grantee-Owned Improvement. (2) Grantee shall maintain such Grantee-Owned Improvements in accordance with this Easement until the termination of this Easement. State may require Grantee to take appropriate steps to decommission the structure. Grantee is liable to State for cost of repair if Grantee causes or allows damage to Grantee-Owned Improvements State has designated to remain. (3) State may condition its waiver of removal on Grantee entering into a new Easement for the Grantee-Owned Improvements. 7.6 Unauthorized Improvements. (a) Unauthorized Improvements belong to State, unless State elects otherwise. (b) The placement of Unauthorized Improvements on the Easement Property is a breach of this Easement and State may require removal of any or all Unauthorized Improvements. If State requires removal of Unauthorized Improvements and if Grantee fails to remove the Unauthorized Improvements, State may remove the Unauthorized Improvements and Grantee shall pay for the cost of removal and disposal. Page 169 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 12 of 35 Easement No. 51-103464 (c) In addition to requiring removal of Unauthorized Improvements, State may charge Grantee a use fee that is sixty percent (60%) higher than the full market value of the use of the land for the Unauthorized Improvements from the time of installation or construction until the time the Unauthorized Improvements are removed. (d) If State consents to Unauthorized Improvements remaining on the Easement Property, upon State’s consent, the Unauthorized Improvements will be treated as Grantee-Owned Improvements and the removal and ownership of such Improvements shall be governed by Paragraph 7.5. If State consents to the Unauthorized Improvements remaining on the Easement Property, State may charge a use fee that is sixty percent (60%) higher than the full market value of the use of the land for the Unauthorized Improvements from the time of installation or construction until State consents. 7.7 Personal Property. (a) Grantee retains ownership of Personal Property unless Grantee and State agree otherwise in writing. (b) Grantee shall remove Personal Property from the Easement Property by the termination of the Easement. Grantee is liable for damage to the Easement Property and to any Improvements that may result from removal of Personal Property. (c) State may remove, sell, or dispose of all Personal Property left on the Easement Property after the termination of the Easement. (1) If State conducts a sale of Personal Property, State shall first apply proceeds to State’s costs of removing the Personal Property, State’s costs in conducting the sale, and any other payment due from the Grantee to State. State shall pay the remainder, if any, to the Grantee. Grantee shall be liable for any costs of removing the Personal Property and conducting the sale that exceed the proceeds received by State. (2) If State disposes of Personal Property, Grantee shall pay for the cost of removal and disposal. SECTION 8 ENVIRONMENTAL LIABILITY/RISK ALLOCATION 8.1 Definitions. (a) “Hazardous Substance” means any substance that now or in the future becomes regulated or defined under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination, pollution, or cleanup. (b) “Release or threatened release of Hazardous Substance” means a release or threatened release as defined under any law described in Paragraph 8.1(a). (c) “Utmost care” means such a degree of care as would be exercised by a very careful, prudent, and competent person under the same or similar circumstances; Page 170 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 13 of 35 Easement No. 51-103464 the utmost care required under RCW 70A.305.040(3)(a)(iii) of the Washington State Model Toxics Control Act (d) “Grantee and affiliates” when used in this Section 8 means Grantee or Grantee’s subgrantees, contractors, agents, employees, guests, invitees, licensees, affiliates, or any person on the Easement Property with the Grantee’s permission. (e) “Liabilities” as used in this Section 8 means any claims, demands, proceedings, lawsuits, damages, costs, expenses, fees (including attorneys’ fees and disbursements), penalties, or judgments. 8.2 General Conditions. (a) Grantee’s obligations under this Section 8 extend to the area in, on, under, or above: (1) The Easement Property and (2) Adjacent state-owned aquatic lands if affected by a release of Hazardous Substances that occurs as a result of the Permitted Use. (b) Standard of Care. (1) Grantee shall exercise the utmost care with respect to Hazardous Substances. (2) As relates to the Permitted Use, Grantee shall exercise utmost care for the foreseeable acts or omissions of third parties with respect to Hazardous Substances, and the foreseeable consequences of those acts or omissions, to the extent required to establish a viable, third-party defense under the law. 8.3 Current Conditions and Duty to Investigate. (a) State makes no representation about the condition of the Easement Property or adjacent state-owned aquatic lands. Hazardous Substances may exist in, on, under, or above the Easement Property or adjacent state-owned aquatic lands. (b) This Easement does not impose a duty on State to conduct investigations or supply information to Grantee about Hazardous Substances. (c) Grantee is responsible for conducting all appropriate inquiry and gathering sufficient information concerning the Easement Property and the existence, scope, and location of Hazardous Substances on or near the Easement Property necessary for Grantee to meet Grantee’s obligations under this Easement and utilize the Easement Property for the Permitted Use. 8.4 Use of Hazardous Substances. (a) Grantee and affiliates shall not use, store, generate, process, transport, handle, release, or dispose of Hazardous Substances, except in accordance with all applicable laws. (b) Grantee shall not undertake, or allow others to undertake by Grantee’s permission, acquiescence, or failure to act, activities that result in a release or threatened release of Hazardous Substances. Page 171 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 14 of 35 Easement No. 51-103464 (c) If use of Hazardous Substances related to the Permitted Use or Grantee’s use of the Property results in a violation of law: (1) Grantee shall submit to State any plans for remedying the violation, and (2) Grantee shall implement any measures to restore the Easement Property or natural resources that State may require in addition to remedial measures required by regulatory authorities. 8.5 Management of Contamination. (a) Grantee and affiliates shall not undertake activities that: (1) Damage or interfere with the operation of remedial or restoration activities, if any; (2) Result in human or environmental exposure to contaminated sediments, if any; (3) Result in the mechanical or chemical disturbance of on-site habitat mitigation, if any. (b) If requested, Grantee shall allow reasonable access to: (1) Employees and authorized agents of the United States Environmental Protection Agency (EPA), the Washington State Department of Ecology, health department, or other similar environmental agencies; and (2) Potentially liable or responsible parties who are the subject of an order or consent decree that requires access to the Easement Property. Grantee may negotiate an access agreement with such parties, but Grantee may not unreasonably withhold such agreement. 8.6 Notification and Reporting. (a) Grantee shall immediately notify State if Grantee becomes aware of any of the following: (1) A release or threatened release of Hazardous Substances; (2) Any new discovery of or new information about a problem or liability related to, or derived from, the presence of Hazardous Substances; (3) Any lien or action arising from Hazardous Substances; (4) Any actual or alleged violation of any federal, state, or local statute, ordinance, rule, regulation, or other law pertaining to Hazardous Substances; (5) Any notification from the EPA or the Washington State Department of Ecology that remediation or removal of Hazardous Substances is or may be required at the Easement Property. (b) Grantee’s duty to report under Paragraph 8.6(a) extends to lands described in Paragraph 8.2(a), and to any other property used by Grantee in conjunction with the Easement Property if a release of Hazardous Substances on the other property could affect the Easement Property. (c) Grantee shall provide State with copies of all documents Grantee submits to any federal, state, or local authorities concerning environmental impacts or proposals relative to the Easement Property. Documents subject to this requirement include, Page 172 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 15 of 35 Easement No. 51-103464 but are not limited to, applications, reports, studies, or audits for National Pollutant Discharge Elimination System permits (NPDES); United States Army Corps of Engineers permits; State Hydraulic Project Approvals (HPA); State Water Quality Certifications; Substantial Shoreline Development permits; and any reporting necessary for the existence, location, and storage of Hazardous Substances on the Easement Property. 8.7 Indemnification. (a) Grantee shall fully indemnify, defend, and hold harmless State from and against any Liabilities that arise out of, or relate to: (1) The use, storage, generation, processing, transportation, handling, or disposal of any Hazardous Substance by Grantee and affiliates occurring whenever Grantee uses or has used the Easement Property; (2) The release or threatened release of any Hazardous Substance resulting from any act or omission of Grantee and affiliates occurring whenever Grantee uses or has used the Easement Property. (b) Grantee shall fully indemnify, defend, and hold harmless State for any Liabilities that arise out of or relate to Grantee’s breach of obligations under Paragraph 8.5. (c) Grantee is obligated to indemnify under this Paragraph 8.7 regardless of whether a NPDES or other permit or license authorizes the discharge or release of Hazardous Substances. (d) If Grantee fails to exercise care as described in Paragraph 8.2(b)(2), Grantee shall fully indemnify, defend, and hold harmless State from and against Liabilities arising from the acts or omissions of third parties in relation to the release or threatened release of Hazardous Substances. 8.8 Reservation of Rights. (a) For Liabilities not covered by the indemnification provisions of Paragraph 8.7, the Parties expressly reserve and do not waive any rights, claims, immunities, causes of action, or defenses relating to Hazardous Substances that either Party may have against the other under law. (b) The Parties expressly reserve all such rights, claims, immunities, and defenses that either Party may have against third parties. Nothing in this Section 8 benefits or creates rights for third parties. (c) The allocations of risks, Liabilities, and responsibilities set forth in this Section 8 do not release either Party from or affect the liability of either Party for Hazardous Substances claims or actions by regulatory agencies. 8.9 Cleanup. (a) If Grantee’s act, omission, or breach of obligation under Paragraph 8.4 results in a release of Hazardous Substances that exceeds the threshold limits of any applicable regulatory standards, Grantee shall, at Grantee’s sole expense, promptly take all actions necessary or advisable to clean up the Hazardous Substances in accordance with applicable law. Page 173 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 16 of 35 Easement No. 51-103464 (b) If a cleanup is eligible for the Washington State Department of Ecology’s Voluntary Cleanup Program,Grantee may undertake a cleanup of the Easement Property pursuant to the Washington State Department of Ecology’s Voluntary Cleanup Program, provided that Grantee cooperates with the Department of Natural Resources in development of cleanup plans. Grantee shall not proceed with Voluntary Cleanup without the Department of Natural Resources’ approval of final plans. Nothing in the operation of this provision is an agreement by the Department of Natural Resources that the Voluntary Cleanup complies with any laws or with the provisions of this Easement. Grantee’s completion of a Voluntary Cleanup is not a release from or waiver of any obligation for Hazardous Substances under this Easement. 8.10 Sampling by State, Reimbursement, and Split Samples. (a) State may conduct sampling, tests, audits, surveys, or investigations (“Tests”) of the Easement Property at any time to determine the existence, scope, or effects of Hazardous Substances. (b) If such Tests, along with any other information, demonstrate a breach of Grantee’s obligations regarding Hazardous Substances under this Easement, Grantee shall promptly reimburse State for all costs associated with such Tests, provided State gave Grantee thirty (30) days’ advance notice in nonemergencies, and reasonably practical notice in emergencies. (c) In nonemergencies, Grantee is entitled to obtain split samples of Test samples, provided Grantee gives State written notice requesting split samples at least ten (10) days before State conducts Tests. Upon demand, Grantee shall promptly reimburse State for additional cost, if any, of split samples. (d) If either Party conducts Tests on the Easement Property, the conducting Party shall provide the other Party with validated final data and quality assurance/quality control/chain of custody information about the Tests within sixty (60) days of a written request by the other Party, unless Tests are part of a submittal under Paragraph 8.6(c) in which case Grantee shall submit data and information to State without written request by State. Neither party is obligated to provide any analytical summaries or the work product of experts. SECTION 9 NATURE OF ESTATE AND ASSIGNMENT This Easement shall be in gross for the sole benefit of Grantee’s use associated with the Permitted Use. This Easement shall not run with the land. This Easement is indivisible. Grantee shall not sell, convey, mortgage, assign, pledge, grant franchises for, or otherwise transfer or encumber any part of Grantee’s interest in this Easement or any part of Grantee’s interest in the Easement Property without State’s prior written consent, which shall be at State’s sole discretion. State reserves the right to reasonably change the terms and conditions of this Easement upon State’s consent to requests made under this Section 9. Page 174 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 17 of 35 Easement No. 51-103464 SECTION 10 INDEMNITY, INSURANCE, FINANCIAL SECURITY 10.1 Allocation of Responsibility. Each Party shall be responsible for the actions and inactions of itself and its own officers, employees, and agents acting within the scope of their authority. Section 8, Environmental Liability/Risk Allocation, exclusively shall govern Grantee’s liability to State for Hazardous Substances and its obligation to indemnify, defend, and hold harmless State for Hazardous Substances. 10.2 Insurance Terms. (a) Insurance Required. (1) Grantee certifies that on the Commencement Date of this Easement it is a member of a self-insured risk pool for all the liability exposures, its self- insurance plan satisfies all State requirements, and its self-insurance plan provides coverage equal to that required in this Paragraph 10.2 and by Paragraph 10.3, Insurance Types and Limits. Grantee shall provide to State evidence of its status as member of a self-insured risk pool. Upon request by State, Grantee shall provide a written description of its financial condition and/or the self-insured funding mechanism. Grantee shall provide State with at least thirty (30) days’ written notice prior to any material changes to Grantee’s self-insured funding mechanism. If during the Term Grantee’s self-insurance plan fails to provide coverage equal to that required in Paragraph 10.2 and Paragraph 10.3 of this Easement, Grantee shall procure additional commercial insurance coverage to meet the requirements of this Easement. The requirements in Paragraphs 10.2(a)(3) and (4) only apply where the Grantee procures additional commercial insurance to meet the requirements of this Easement. (2) Unless State agrees to an exception, Grantee shall provide insurance issued by an insurance company or companies admitted to do business in the State of Washington and have a rating of A- or better by the most recently published edition of A.M. Best’s Insurance Reports. Grantee may submit a request to the risk manager for the Department of Natural Resources to approve an exception to this requirement. If an insurer is not admitted, the insurance policies and procedures for issuing the insurance policies shall comply with Chapter 48.15 RCW and 284-15 WAC. (3) All general liability, excess, umbrella, and pollution legal liability insurance policies must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as an additional insured by way of endorsement. (4) All property, builder’s risk, and equipment breakdown insurance must name the State of Washington, the Department of Natural Resources, its elected and appointed officials, officers, agents, and employees as loss payees. Page 175 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 18 of 35 Easement No. 51-103464 (5) All insurance provided in compliance with this Easement must be primary as to any other insurance or self-insurance programs afforded to or maintained by State. (b) Waiver. (1) Grantee waives all rights against State for recovery of damages to the extent insurance maintained pursuant to this Easement covers these damages. (2) Except as prohibited by law, Grantee waives all rights of subrogation against State for recovery of damages to the extent that they are covered by insurance maintained pursuant to this Easement. (c) Proof of Insurance. (1) Grantee shall provide State with a certificate(s) and endorsement(s) of insurance executed by a duly authorized representative of each insurer, showing compliance with insurance requirements specified in this Easement and, if requested, copies of policies to State. (2) The certificate(s) of insurance must reference the Easement number. (3) Receipt of such certificates, endorsements, or policies by State does not constitute approval by State of the terms of such policies. (d) State must receive written notice before cancellation or non-renewal of any insurance required by this Easement, as follows: (1) Insurers subject to RCW 48.18 (admitted and regulated by the Insurance Commissioner): If cancellation is due to non-payment of premium, provide State ten (10) days’ advance notice of cancellation; otherwise, provide State forty-five (45) days’ advance notice of cancellation or non- renewal. (2) Insurers subject to RCW 48.15 (surplus lines): If cancellation is due to non-payment of premium, provide State ten (10) days’ advance notice of cancellation; otherwise, provide State twenty (20) days’ advance notice of cancellation or non-renewal. (e) Adjustments in Insurance Coverage. (1) State may impose changes in the limits of liability for all types of insurance as State deems necessary. (2) Grantee shall secure new or modified insurance coverage within thirty (30) days after State requires changes in the limits of liability. (f) If Grantee fails to procure and maintain the insurance required in this Easement within fifteen (15) days after Grantee receives a notice to comply from State, State may either: (1) Terminate this Easement; or (2) Procure and maintain comparable substitute insurance and pay the premiums. Upon demand, Grantee shall pay to State the full amount paid by State, together with interest at the rate provided in Paragraph 6.3 from the date of State’s notice of the expenditure until Grantee’s repayment. (g) General Terms. Page 176 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 19 of 35 Easement No. 51-103464 (1) State does not represent that coverage and limits required under this Easement are adequate to protect Grantee. (2) Coverage and limits do not limit Grantee’s liability for indemnification and reimbursements granted to State under this Easement. (3) The Parties shall use any insurance proceeds payable by reason of damage or destruction to Easement Property first to restore the Easement Property, then to pay the cost of the reconstruction, then to pay State any sums in arrears, and then to Grantee. 10.3 Insurance Types and Limits. (a) General Liability Insurance. (1) Grantee shall maintain commercial general liability insurance (CGL) or marine general liability (MGL) covering claims for bodily injury, personal injury, or property damage arising on the Easement Property and/or arising out of the Permitted Use and, if necessary, commercial umbrella insurance with a limit of not less than One Million Dollars ($1,000,000) per each occurrence. If such CGL or MGL insurance contains aggregate limits, the general aggregate limit must be at least twice the “each occurrence” limit. CGL or MGL insurance must have products-completed operations aggregate limit of at least two times the “each occurrence” limit. (2) CGL insurance must be written on Insurance Services Office (ISO) Occurrence Form CG 00 01 (or a substitute form providing equivalent coverage). All insurance must cover liability arising out of premises, operations, independent contractors, products completed operations, personal injury and advertising injury, and liability assumed under an insured contract (including the tort liability of another party assumed in a business contract) and contain separation of insured (cross-liability) condition. (3) MGL insurance must have no exclusions for non-owned watercraft. (b) Workers’ Compensation. (1) State of Washington Workers’ Compensation. (i) Grantee shall comply with all State of Washington workers’ compensation statutes and regulations. Grantee shall provide workers’ compensation coverage for all employees of Grantee. Coverage must include bodily injury (including death) by accident or disease, which arises out of or in connection with the Permitted Use or related activities. (ii) If Grantee fails to comply with all State of Washington workers’ compensation statutes and regulations and State incurs fines or is required by law to provide benefits to or obtain coverage for such employees, Grantee shall indemnify State. Indemnity shall include all fines; payment of benefits to Grantee, employees, or their heirs Page 177 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 20 of 35 Easement No. 51-103464 or legal representatives; and the cost of effecting coverage on behalf of such employees. (2) Longshore and Harbor Workers’ and Jones Acts. The Longshore and Harbor Workers’ Act (33 U.S.C. Section 901 et. seq.) and/or the Jones Act (46 U.S.C. Section 30104) may require Grantee to provide insurance coverage in some circumstances. Grantee shall ascertain if such insurance is required, and if required, shall maintain insurance in compliance with the law. Grantee is responsible for all civil and criminal liability arising from failure to maintain such coverage. (c) Employers’ Liability Insurance. Grantee shall procure employers’ liability insurance, and, if necessary, commercial umbrella liability insurance with limits not less than One Million Dollars ($1,000,000) each accident for bodily injury by accident and One Million Dollars ($1,000,000) each employee for bodily injury by disease. (d) Pollution Legal Liability Insurance. (1) Grantee shall procure and maintain for the duration of this Easement pollution legal liability insurance, including investigation and defense costs, for bodily injury and property damage, including loss of use of damaged property or of property that has not been physically injured or destroyed. Such coverage must also provide for both on-site and off-site cleanup costs, cover gradual and sudden pollution, and include in its scope of coverage natural resource damage claims. The Insurance Certificate must state that the insurer is covering Hazardous Substance removal. Grantee shall maintain coverage in an amount of at least: (i) Two Million Dollars ($2,000,000) each occurrence for Grantee’s operations at the site(s) identified above, and (ii) Five Million Dollars ($5,000,000) general aggregate or policy limit, if any. (2) Such insurance may be provided on an occurrence or claims-made basis. If such coverage is obtained as an endorsement to the CGL or is provided on a claims-made basis, the following additional conditions must be met: (i) The policy must contain no retroactive date, or the retroactive date must precede the Commencement Date of the Easement. (ii) Coverage must either be continuously maintained for a period of five (5) years following the Termination Date of the Easement, or an extended reporting period of at least five (5) years following the Termination Date of the Easement shall be purchased. (e) Property Insurance. (1) Grantee shall buy and maintain property insurance covering all real property and fixtures, equipment, Improvements and betterments (regardless of whether owned by Grantee or State). Such insurance must be written on an all risks basis and, at minimum, cover the perils insured under ISO Special Causes of Loss Form CP 10 30, and cover the full replacement cost of the property insured. Such insurance may have Page 178 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 21 of 35 Easement No. 51-103464 commercially reasonable deductibles. Any coinsurance requirement in the policy must be waived. (2) Grantee shall buy and maintain equipment breakdown insurance covering all real property and fixtures, equipment, Improvements and betterments (regardless of whether owned by Grantee or State) from loss or damage caused by the explosion of equipment, fired or unfired vessels, electric or steam generators, electrical arcing, or pipes. (3) In the event of any loss, damage, or casualty that is covered by one or more of the types of insurance described above, the Parties shall proceed cooperatively to settle the loss and collect the proceeds of such insurance, which State shall hold in trust, including interest earned on such proceeds, for use according to the terms of this Easement. The Parties shall use insurance proceeds in accordance with Paragraph 10.2(g)(3). (4) When sufficient funds are available, using insurance proceeds described above, the Parties shall continue with reasonable diligence to prepare plans and specifications for, and thereafter carry out, all work necessary to: (i) Repair and restore damaged Improvements to their former condition, or (ii) Replace and restore damaged Improvements with new Improvements on the Easement Property of a quality and usefulness at least equivalent to, or more suitable than, damaged Improvements. (e) Builder’s Risk Insurance. (1) Grantee shall procure and maintain in force, or require its contractor(s) to procure and maintain in force, builder’s risk insurance on the entire work during the period construction is in progress and until completion of the project and acceptance by State. Such insurance must be written on a completed form and in an amount equal to the value of the completed Improvements, subject to subsequent modifications to the sum. The insurance must be written on a replacement cost basis. The insurance must name Grantee, all contractors, and subcontractors in the work as insured. (2) Insurance described above must cover or include the following: (i) All risks of physical loss except those specifically excluded in the policy, including loss or damage caused by collapse; (ii) The entire work on the Easement Property, including reasonable compensation for architect’s services and expenses made necessary by an insured loss; (iii) Portions of the work located away from the Easement Property but intended for use at the Easement Property, and portions of the work in transit; (iv) Scaffolding, falsework, and temporary buildings located on the Easement Property; and Page 179 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 22 of 35 Easement No. 51-103464 (v) The cost of removing debris, including all demolition as made legally necessary by the operation of any law, ordinance, or regulation. (3) Grantee or Grantee’s contractor(s) is responsible for paying any part of any loss not covered because of application of a deductible contained in the policy described above. (4) Grantee or Grantee’s contractor(s) shall buy and maintain equipment breakdown insurance covering insured objects during installation and until final acceptance by permitting authority. If testing is performed, such insurance must cover such operations. The insurance must name Grantee, all contractors, and subcontractors in the work as insured. 10.4 Financial Security. (a) On the Commencement Date of this Easement, Grantee is not required to procure and maintain a corporate security bond or other financial security (“Security”). During the Term, State may require Grantee to procure and maintain Security upon any of the events listed in Paragraph 10.4(c)(1). Grantee’s failure to maintain the Security in the required amount during the Term constitutes a breach of this Easement. (b) All Security must be in a form acceptable to State. (1) Bonds must be issued by companies admitted to do business within the State of Washington and have a rating of A-, Class VII or better, in the most recently published edition of A.M. Best’s Insurance Reports, unless State approves an exception in writing. Grantee may submit a request to the Risk Manager for the Department of Natural Resources for an exception to this requirement. (2) Letters of credit, if approved by State, must be irrevocable, allow State to draw funds at will, provide for automatic renewal, and comply with RCW 62A.5-101, et. seq. (3) Savings account assignments, if approved by State, must allow State to draw funds at will. (c) Adjustment in Amount of Security. (1) State may require an adjustment in the Security amount: (i) As a condition of approval of assignment of this Easement, (ii) Upon a material change in the condition or disposition of any Improvements, or (iii) Upon a change in the Permitted Use. (2) Grantee shall deliver a new or modified form of Security to State within thirty (30) days after State has required adjustment of the amount of the Security. (d) Upon any breach by Grantee in its obligations under this Easement, State may collect on the Security to offset the liability of Grantee to State. Collection on the Security does not (1) relieve Grantee of liability, (2) limit any of State’s other Page 180 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 23 of 35 Easement No. 51-103464 remedies, (3) reinstate the Easement or cure the breach or (4) prevent termination of the Easement because of the breach. SECTION 11 MAINTENANCE AND REPAIR 11.1 State’s Repairs. State shall not be required to make any alterations, maintenance, replacements, or repairs in, on, or about the Easement Property, or any part thereof, during the Term. 11.2 Grantee’s Repairs and Maintenance. (a) Grantee shall, at its sole cost and expense, keep and maintain the Easement Property and all Grantee-Owned Improvements in good order and repair, in a clean, attractive, and safe condition. Grantee shall repair all damage caused or permitted by Grantee to Improvements Owned by Others on the Easement Property. (b) Grantee shall, at its sole cost and expense, make any and all additions, repairs, alterations, maintenance, replacements, or changes to the Easement Property or to any Grantee-Owned Improvements on the Easement Property that may be required by any public authority having jurisdiction over the Easement Property and requiring it for public health, safety, and welfare purposes. (c) Except as provided in Paragraph 11.2(d), all additions, repairs, alterations, maintenance, replacements, or changes to the Easement Property and to any Grantee-Owned Improvements on the Easement Property shall be made in accordance with, and ownership shall be governed by, Section 7, above. (d) Routine maintenance and repair are acts intended to prevent a decline, lapse, or cessation of the Permitted Use and associated Grantee-Owned Improvements. Routine maintenance or repair that does not require regulatory permits does not require authorization from State pursuant to Section 7. (e) Upon completion of maintenance activities, Grantee shall remove all debris and restore the Easement Property to the condition prior to the commencement of Work. SECTION 12 DAMAGE OR DESTRUCTION 12.1 Damage to Improvements. (a) In the event of any damage to or destruction of any Improvements on the Easement Property, Grantee shall immediately notify State, with subsequent written notice to State within five (5) days. Page 181 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 24 of 35 Easement No. 51-103464 (b) Grantee shall be solely responsible for any reconstruction, repair, or replacement of any Grantee-Owned Improvements. If Grantee elects not to reconstruct, repair, or replace all or a portion of any damaged Improvements, Grantee shall promptly remove any damaged or destroyed Improvements and restore the Easement Property. Any reconstruction, repair, or replacement of Improvements is governed by Section 7 Improvements, Personal Property, and Work, and Section 11, Maintenance and Repair, and any Additional Obligations in Exhibit B. (c) If Grantee is in breach of this Easement at the time damage or destruction occurs to Grantee-Owned Improvements, State may elect to terminate the Easement without giving Grantee an opportunity to cure, and State may retain any insurance proceeds payable as a result of the damage or destruction. 12.2 Damage to Land or Natural Resources (a) In the event of any damage to or destruction to the land or natural resources on the Easement Property, Grantee shall immediately notify State, with subsequent written notice to State within five (5) days. In the event of any damage or destruction to land or natural resources on adjacent state-owned aquatic lands that is attributable to Grantee’s use of the Property, to the Permitted Use, or to related activities, Grantee shall immediately notify State, with subsequent written notice to State within five (5) days. (b) Grantee, at Grantee’s sole cost, shall remedy any damages to land or natural resources on the Easement Property and adjacent state-owned aquatic lands that are attributable to Grantee’s use of the Property, the Permitted Use, or related activities, in accordance with a plan approved by State. Grantee shall also compensate State for any lost or damaged natural resource values in accordance with Paragraph 12.2(c). (c) Compensation for lost resource values: (1) If damages to the land or natural resources result in lost or damaged natural resource values, Grantee shall compensate State with (1) monetary compensation; (2) the completion of a project approved by State that includes replacing, enhancing, or otherwise providing in-kind habitats, resources, or environments on other state-owned aquatic lands in order to offset the damage and impacts; or (3) a mixture of both monetary compensation and a project. State shall have the discretion to determine if Grantee will compensate with monetary compensation, a project, or both. If State requires monetary compensation, the value of damages shall be determined in accordance with Paragraph 12.2(c)(2). If State requires monetary compensation under Paragraph 12.2(c)(1), unless the Parties otherwise agree on the value, a three-member panel of professional appraisers or resource economists will determine the measure of lost resource values, and issue a written decision. The appraisers or resource economists shall be qualified to assess economic value of natural resources. State and Grantee each shall appoint and compensate one member of the panel. By consensus, the two appointed members shall Page 182 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 25 of 35 Easement No. 51-103464 select the third member, who will be compensated by State and Grantee equally. The panel shall base the calculation of compensation on generally accepted valuation principles. The written decision of the majority of the panel shall bind the Parties. (d) If damage to land or natural resources on the Easement Property or adjacent state- owned aquatic lands are attributable to Grantee’s use of the Property, to the Permitted Use, or to related activities, or if such damage occurs when Grantee is in breach of the Easement, State may elect to terminate the Easement in accordance with Section 14. If State elects to terminate the Easement, Grantee is still responsible for restoring any damages to land or natural resources on the Easement Property and adjacent state-owned aquatic lands, and for compensating State for any lost resource values in accordance with Paragraph 12.2(c). State may retain any insurance proceeds payable as a result of the damage or destruction. (e) State may, with or without terminating the Easement, at the sole expense of Grantee, remedy any damages and complete a project that offsets lost or damaged natural resource values. If State takes any such actions, upon demand by State, Grantee shall pay all costs incurred by State. 12.3 State’s Waiver of Claim. State does not waive any claims for damage or destruction of the Easement Property or adjacent state-owned aquatic lands unless State provides written notice to Grantee of each specific claim waived. 12.4 Insurance Proceeds. Grantee’s duties under Paragraphs 12.1 and 12.2 are not conditioned upon the availability of any insurance proceeds to Grantee from which the cost of repairs may be paid. The Parties shall use insurance proceeds in accordance with Paragraph 10.2(g)(3). SECTION 13 CONDEMNATION In the event of condemnation, the Parties shall allocate the condemnation award between State and Grantee based upon the ratio of the fair market value of (1) Grantee’s rights in the Easement Property and Grantee-Owned Improvements and (2) State’s interest in the Easement Property, the reversionary interest in Grantee-Owned Improvements, if any, and State-Owned Improvements, if any. In the event of a partial taking, the Parties shall compute the ratio based on the portion of Easement Property or Improvements taken. If Grantee and State are unable to agree on the allocation, the Parties shall submit the dispute to binding arbitration in accordance with the rules of the American Arbitration Association. SECTION 14 REMEDIES AND TERMINATION 14.1 Termination by Breach. State may terminate this Easement upon Grantee’s failure to cure a breach of the terms and conditions of this Easement. Unless otherwise stated in this Page 183 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 26 of 35 Easement No. 51-103464 Easement, State shall provide Grantee written notice of breach, and Grantee shall have sixty (60) days after receiving the notice to cure the breach. State may extend the cure period if breach is not reasonably capable of cure within sixty (60) days. This sixty (60) day cure period does not apply where State terminates this Easement under Paragraph 10.2(f) or Section 12. 14.2 Termination by Nonuse. If Grantee does not use the Easement Property for a period of three (3) successive years, this Easement terminates without further action by State and Grantee’s rights revert to State. Grantee shall still be responsible for complying with all end of Term requirements. 14.3 Termination by Grantee. Grantee may terminate this Easement upon providing State with sixty (60) days written notice of intent to terminate. If Grantee terminates under this Paragraph, the date of Grantee’s termination shall be deemed the Termination Date and Grantee shall comply with all end of Term requirements. Grantee is not entitled to any refunds of Easement fees already paid to State. 14.4 Remedies Not Exclusive. The remedies specified under this Section 14 are not exclusive of any other remedies or means of redress to which State is lawfully entitled for Grantee’s breach or threatened breach of any provision of this Easement. SECTION 15 NOTICE AND SUBMITTALS 15.1 Notice. Following are the locations for delivery of notice and submittals required or permitted under this Easement. Any Party may change the place of delivery upon ten (10) days’ written notice to the other. State: DEPARTMENT OF NATURAL RESOURCES Aquatic Resources, Rivers District 601 Bond Rd | P.O. Box 280 Castle Rock, WA 98611 Grantee: CITY OF PASCO PUBLIC WORKS 525 N. 3rd Avenue Pasco, WA 99301 The Parties may deliver any notice in person, by facsimile machine, or by certified mail. Depending on the method of delivery, notice is effective upon personal delivery, upon receipt of a confirmation report if delivered by facsimile machine, or three (3) days after mailing. All notices must identify the Easement number. On notices transmitted by facsimile machine, the Parties shall state the number of pages contained in the notice, including the transmittal page, if any. Page 184 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 27 of 35 Easement No. 51-103464 15.2 Contact Persons. On the Commencement Date, the following persons are designated day-to-day contact persons. Any Party may change the Contact Person upon reasonable notice to the other. State: DEPARTMENT OF NATURAL RESOURCES Aquatic Resources, Rivers District 360-748-2387 rivers@dnr.wa.gov Grantee: CITY OF PASCO PUBLIC WORKS Jon Padvorac, City Engineer 509-545-3445 padvoracj@pasco-wa.gov SECTION 16 MISCELLANEOUS 16.1 Authority. Grantee and the person or persons executing this Easement on behalf of Grantee represent that Grantee is qualified to do business in the State of Washington, that Grantee has full right and authority to enter into this Easement, and that each and every person signing on behalf of Grantee is authorized to do so. Upon State’s request, Grantee shall provide evidence satisfactory to State confirming these representations. 16.2 Successors and Assigns. Subject to the limitations set forth in Section 9, this Easement binds and inures to the benefit of the Parties, their successors, and assigns. 16.3 Headings. The headings used in this Easement are for convenience only and in no way define, limit, or extend the scope of this Easement or the intent of any provision. 16.4 Entire Agreement. This Easement, including the exhibits, attachments, and addenda, if any, contains the entire agreement of the Parties. This Easement merges all prior and contemporaneous agreements, promises, representations, and statements relating to this transaction or to the Easement Property. 16.5 Waiver. (a) The waiver of any breach of any term, covenant, or condition of this Easement is not a waiver of such term, covenant, or condition; of any subsequent breach of the same; or of any other term, covenant, or condition of this Easement. State’s acceptance of a payment is not a waiver of any preceding or existing breach other than the failure to pay the particular payment that was accepted. (b) The renewal of the Easement, extension of the Easement, or the issuance of a new Easement to Grantee does not waive State’s ability to pursue any rights or remedies under the Easement. Page 185 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 28 of 35 Easement No. 51-103464 16.6 Cumulative Remedies. The rights and remedies of State under this Easement are cumulative and in addition to all other rights and remedies afforded by law or equity or otherwise. 16.7 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Easement. 16.8 Language. The word “Grantee” as used in this Easement applies to one or more persons, and regardless of gender, as the case may be. The singular includes the plural, and the neuter includes the masculine and feminine. If there is more than one Grantee, their obligations are joint and several. The word “persons,” whenever used, shall include individuals, firms, associations, and corporations. The word “Parties” means State and Grantee in the collective. The word “Party” means either or both State and Grantee, depending on the context. 16.9 Invalidity. The invalidity, voidness, or illegality of any provision of this Easement does not affect, impair, or invalidate any other provision of this Easement. 16.10 Applicable Law and Venue. This Easement is to be interpreted and construed in accordance with the laws of the State of Washington. Venue for any action arising out of or in connection with this Easement is in the Superior Court for Thurston County, Washington. 16.11 Statutory Reference. Any reference to a statute or rule means that statute or rule as presently enacted or hereafter amended or superseded. 16.12 Recordation. At Grantee’s expense and no later than thirty (30) days after receiving the fully-executed Easement, Grantee shall record this Easement in the county in which the Easement Property is located. Grantee shall include the parcel number of the upland property used in conjunction with the Easement Property, if any. Grantee shall provide State with recording information, including the date of recordation and file number. If Grantee fails to record this Easement, State may record this Easement and Grantee shall pay the costs of recording upon State’s demand. 16.13 Modification. No modification of this Easement is effective unless in writing and signed by both Parties. Oral representations or statements do not bind either Party. 16.14 Survival. Any obligations of Grantee not fully performed upon termination of this Easement do not cease, but continue as obligations of the Grantee until fully performed. Page 186 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 29 of 35 Easement No. 51-103464 16.15 Exhibits and Attachments. All referenced exhibits and attachments are incorporated in this Easement unless expressly identified as unincorporated. THIS AGREEMENT requires the signature of all Parties and is effective on the date of the last signature below. CITY OF PASCO PUBLIC WORKS Dated: _____________________, 20__ __________________________________ By: JON PADVORAC Title: City Engineer Address: 525 N. 3rd Avenue Pasco, WA 99301 Phone: 509-545-3445 STATE OF WASHINGTON DEPARTMENT OF NATURAL RESOURCES Dated: _____________________, 20__ __________________________________ By: ALEXANDRA K. SMITH Title: Deputy Supervisor for Forest Resilience, Regulation and Aquatics Address: 1111 Washington Street SE MS 47207 Olympia, WA 98504 Aquatic Lands Outfall Easement Template approved as to form this 10th day of January 2022 Jennifer Clements, Assistant Attorney General Page 187 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 30 of 35 Easement No. 51-103464 REPRESENTATIVE ACKNOWLEDGMENT Notarized online using audio-video communication STATE OF ) ) ss. County of ) I certify that I know or have satisfactory evidence that JON PADVORAC is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the City Engineer of the City of Pasco to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. This notarial act involved the use of communication technology. Dated: _____________________, 20__ _________________________________ (Signature) (Seal or stamp) ___________________________________ (Print Name) Notary Public in and for the State of Washington, residing at ___________________________________ My appointment expires _______________ Page 188 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 31 of 35 Easement No. 51-103464 STATE ACKNOWLEDGMENT Notarized online using audio-video communication STATE OF WASHINGTON) ) ss. County of ) I certify that I know or have satisfactory evidence that ALEXANDRA K. SMITH is the person who appeared before me, and said person acknowledged that they signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the Deputy Supervisor for Forest Resilience, Regulation, and Aquatics of the Department of Natural Resources, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. This notarial act involved the use of communication technology. Dated: _____________________, 20__ _________________________________ (Signature) (Seal or stamp) ___________________________________ (Print Name) Notary Public in and for the State of Washington, residing at ___________________________________ My appointment expires _______________ Page 189 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 32 of 35 Easement No. 51-103464 EXHIBIT A PROPERTY DESCRIPTION Agreement Number 51-103464 1. LEGAL DESCRIPTION OF THE PROPERTY: The proposed easement is legally described as DNR Easement Application and File No. 51-103464, also in that Record of Survey recorded in Franklin County, Washington on X , 2023 in Book X of Surveys on page X. 2. SQUARE FOOTAGE OF EASEMENT: Total Bedlands: 15,226 Total Square Feet: 15,226 Commented [GS(3]: Edit Once I get the approved and recorded survey. Page 190 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 33 of 35 Easement No. 51-103464 EXHIBIT B 1. DESCRIPTION OF PERMITTED USE A. Existing Facilities. There is one (1) active 24-inch diameter WWTP outfall pipe that extends into the Columbia River and diffuses treated wastewater processed by the City of Pasco’s Waste Water Treatment Plant located upland of the river. The outfall is managed by Department of Ecology (DOE) under NPDES WA-004496-2 which expired in 2015, however, the Grantee is in the process of renewing the existing permit. The existing pipe and outfall are outside of the easement area. The existing 24-inch-diameter gravity outfall pipeline and in-river diffuser are at or near capacity due to hydraulic constraint, and will be replaced with a 42-inch- diameter high density polyethylene pipe, and new diffuser. Once the new pipe is installed and functional, the existing pipe will be decommissioned, and removed. B. Proposed Work. State authorizes Grantee to conduct the following Proposed Work on the Easement Property: installation of one (1) 42-inch diameter high-density polyethylene (HDPE) pipe approximately 1,200 linear feet in length, one (1) 150-foot-long diffuser section with 10 vertical discharge ports with duckbill valves. Grantee’s Proposed Work is considered Work and is subject to the terms and conditions of this Easement. If the Proposed Work is not commenced within five years of the Commencement Date of the Easement, or if Grantee is required to renew, extend, modify, or obtain a new regulatory permit for the Proposed Work, Grantee shall obtain State’s prior written consent before conducting the Proposed Work pursuant to Section 7.3 of the Easement. C. Permits for Proposed Work. Grantee has secured the following permits for the Proposed Work:  SERP (State Environmental Review Process) Submittal, Clean Water Preservation Project, WQC-2021-Pasco-00020 and WQC-2022-Pasco-00044, Department of Ecology, issued September 29, 2022.  National Pollutant Discharge Elimination System (NPDES) Waste Discharge Permit No. WA-004496-2, Department of Ecology, issued June 29, 2010, expires June 30, 2015. Permit has been administratively extended while the Department of Ecology (Ecology) generates a new permit.  Construction Stormwater General Permit: WAR312101, Department of Ecology, issued February 14, 2023.  Letter of Concurrence for Determination of No Historic Properties, Section 106 of the National Historic Preservation Act, DAHP Project Number 2022-04-02720, Department of Ecology, Water Quality Program, issued October 12, 2022. Page 191 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 34 of 35 Easement No. 51-103464  Hydraulic Project Approval: 2022-3-53+01, Washington Department of Fish and Wildlife, issued November 15, 2022, expires November 14, 2027.  SEPA Checklist, City of Pasco, signed July 5, 2022.  SEPA Notice of Mitigated Determination of Non-Significance: SEPA 2022-069, City of Pasco, issued July 27, 2022.  Shoreline Substantial Development and Conditional Use permit (includes Critical Areas): SMP 2022-003, City of Pasco, issued August 18, 2022.  Biological Opinion and Letter of Concurrence: FWS/R1/2022-0036919, United States Department of the Interior Fish and Wildlife, issued September 27, 2022.  Nationwide Permit 1 and 7: NWS-2022-223, Department of Army Corp of Engineers, issued September 15, 2022, expires March 14, 2027 (includes DOE 401 and CZMA certification).  Tier 1 Antidegradation Evaluation for the City of Pasco WWTP Clean Water Preservation Project Phase 2 in Pasco, Washington, USACE Reference # NWS- 2022-223, Dredged Material Management Office (DMMP), issued May 20, 2022.  Endangered Species Act Biological Opinion: WCRO-2022-01039, United States Department of Commerce National Oceanic and Atmospheric Administration (NOAA), issued November 17, 2022.  Private Aids to Navigation (PATON) Permit, United States Coast Guard, issued October 25, 2022. 2. ADDITIONAL OBLIGATIONS Except for the Proposed Work authorized in Section 1.B. of this Exhibit B, State has not authorized Grantee to conduct any Work on the Easement Property. Where Work will need to be conducted to meet the Additional Obligations below, Grantee shall obtain State’s prior written consent in accordance with Section 7.3 of this Easement and obtain all necessary regulatory permits prior to commencing such Work. A. At the time of application to renew the NPDES Permit, or every five (5) years, whichever is first, Grantee shall submit to State a report addressing progress to reduce discharges on state-owned aquatic land and associated biological communities. “Progress” means Grantee is analyzing or developing alternative treatment and/or disposal methods including, but not limited to, (1) reduction of inflow and infiltration; (2) groundwater recharge; (3) stream augmentation, industrial process supply, and/or agricultural application; (4) water conservation programs; (5) other water re-use projects; (6) low impact development; and (7) stormwater treatment processes. B. National Pollutant Discharge Elimination System (NPDES) permit i. The NPDES Permit start date is June 29, 2010 and requires renewal in accordance with WAC 173-220-180. Page 192 of 273 THIS DRAFT DOES NOT CONSTITUTE AN OFFER NOR A COMMITMENT TO EXTEND AN OFFER Aquatic Lands Outfall Easement (1/10/2022) Page 35 of 35 Easement No. 51-103464 ii. Grantee shall notify State when they contact the Washington State Department of Ecology to apply or renew a National Pollutant Discharge Elimination System (NPDES) permit. iii. Grantee shall notify State of any proposed changes/additions/deletions to the NPDES permit and allow State a reasonable period to comment. iv. Grantee shall submit to State all NPDES Outfall Evaluation Reports. D. Grantee shall post clearly the following signs provided by Grantee (Buoy Signs that state “No anchor drag within 400 yards of buoy”. Aquatic Lands Outfall Easement Template approved as to form this 10th day of January 2022 Jennifer Clements, Assistant Attorney General Page 193 of 273 LOCATION MAPPage 194 of 273 AGENDA REPORT FOR: City Council June 28, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Steve Worley, Director Public Works SUBJECT: Resolution No. 4363 Bid Award for the I-182 and Broadmoor Boulevard Interchange I. REFERENCE(S): Resolution II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to approve Resolution No. 4363, awarding Bid No. 21292 for the I-182 and Broadmoor Boulevard Interchange Project to Nelson Construction Group, of Walla Walla, Washington; and further authorize the City Manager to execute the contract documents. III. FISCAL IMPACT: Engineer's Estimate: $7,058,209.75 Contract Total: $6,691,534.74 IV. HISTORY AND FACTS BRIEF: In furthering Council’s goals regarding the enhancement of the Community Transportation Network, staff worked with DKS Associates (DKS) on the analysis and final design of the I-182/Broadmoor Interchange Improvement project. The analysis included the development of an Access Revision Report (ARR), which included a robust public involvement process and received Federal Highway Administration (FHWA) and Washington Department of Transportation (WSDOT) approval. The ARR’s first recommended project includes the construction of an additional eastbound deceleration lane on I-182 to a new looped-off ramp for northbound Broadmoor Blvd traffic. The new loop off -ramp will bring eastbound I-182 traffic under the existing interchange overpass and loop around to Broadway Blvd. A Page 195 of 273 roundabout will also be constructed to replace the existing signal at the eastbound on/off ramps and Broadmoor Blvd intersection. This project will help alleviate existing traffic that backs up on mainline I-182 and with future increases in traffic from new development in the Broadmoor and surrounding area. V. DISCUSSION: The I-182 and Broadmoor Boulevard Interchange project advertised for bids on June 2, 2023, and June 9, 2023, respectively. On June 30, 2023, a public bid opening was held for the I-182 and Broadmoor Boulevard Interchange project at 2:00 PM. A total of five (5) bids were received. The lowest responsible, responsive bidder is Nelso of amount the in WA Walla, Walla of Group, Construction n $6,691,534.74. The Engineer's Estimate is $7,058,209.75 Bid Tabulation Nelson Construction Group $6,691,534.74 N.A. Degerstrom $7,605,014.08 Apollo, Inc. $7,759,963.42 Granite Construction Company $8,018,876.25 Inland Asphalt Company $8,569,173.29 The Engineer of Record and City staff reviewed the bid submittal, including supplemental responsibility criteria, to ensure no exemptions or irregularities are found. Staff recommends award of the contract for the I-182 and Broadmoor Boulevard Interchange project to Nelson Construction Group, of Walla Walla, WA. Page 196 of 273 Resolution – Updated Bid Award for the I-182 and Broadmoor Boulevard Interchange Project- 1 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AWARDING BID NO. 21292 FOR THE I-182 AND BROADMOOR BOULEVARD INTERCHANGE PROJECT TO NELSON CONSTRUCTION, CORP. OF WALLA WALLA, WASHINGTON; AND FURTHER, AUTHORIZE THE CITY MANAGER TO EXECUTE THE CONTRACT DOCUMENTS. WHEREAS, the City of Pasco (City) identified the I-182 and Broadmoor Boulevard Interchange Project in the approved Capital Improvement Plan; and WHEREAS, this project involves a new loop off-ramp from I-182 and a new roundabout at the I-182 off-ramp terminus at Broadmoor Boulevard. The roadway connections, intersection, and interchange improvements will improve motor vehicle operations and safety deficiencies at the I-182/Broadmoor Boulevard (Road 100) interchange and complete a safe north-south route for cyclists and pedestrians either on or parallel to Broadmoor Boulevard (Road 100) through the interchange; and WHEREAS, the City solicited sealed public bids for this project, identified as the I-182 and Broadmoor Boulevard Interchange Project; and WHEREAS, on June 30, 2023, at 2:00 p.m., five (5) bids were received and opened by the City; and WHEREAS, the lowest responsive bidder was Nelson Construction Corp. with a bid of $6,691,534.74, the Engineer’s Estimate was $7,058,209.75; and WHEREAS, the bid documentation was reviewed, and the bidder was determined to be responsible and responsive. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City hereby awards the I-182 and Broadmoor Boulevard Interchange Project to Nelson Construction Corp. of Walla Walla, Washington, in the amount of $6,691,534.74, including Washington State Sales Tax; and further authorizes the City Manager to execute the contract documents. Be It Further Resolved, that this Resolution shall take effect and be in full force immediately upon passage by the City Council. Page 197 of 273 Resolution – Updated Bid Award for the I-182 and Broadmoor Boulevard Interchange Project- 2 PASSED by the City Council of the City of Pasco, Washington, on this ___ day of July, 2023. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 198 of 273 AGENDA REPORT FOR:City Council July 12, 2023 TO:Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM:Jacob Gonzalez, Director Community & Economic Development SUBJECT:Continued Right-of-Way Vacation for Snake River Agriculture LLC (VAC 2022-006) I.REFERENCE(S): Exhibit A: Right-of-way Request Survey Exhibit B: Vicinity Map Exhibit C: Overview Map Exhibit D: Presentation Exhibits E & F: Email correspondence Exhibit G: Packet provided by B4 Development & Consulting 6.5.2023 II.ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to deny a request to vacate a portion of South Oregon Avenue located at the southeast corner of East "A" Street and South Oregon Avenue. III.FISCAL IMPACT: None. IV.HISTORY AND FACTS BRIEF: Snake River Agriculture LLC (the petitioner) has submitted a request to vacate (VAC 2022-006) a portion of right-of-way located at the intersection of East "A" Street and South Oregon Avenue. The proposed vacation contains 0.28 acres as depicted in Exhibits A, B, and C. B4 Development and Consulting (B4) has been retained as the petitioner's representative. Timeline: December 1, 2022: Mr. Jon Padvorac, City Engineer, met with a representative of the petitioner to discuss several projects. Page 199 of 273 The representative was documented to have stated that no assurances were provided that the right-of-way would be vacated. December 5, 2022:A public hearing was held regarding this proposed vacation at the Council Meeting. During the hearing, a representative of the petitioner stated: o The owner of the property plans to build a gas station and requested that Council approve the vacation. o That without vacation, a parcel of land would sit vacant and be undeveloped because a developer is required to improve the right-of-way of a street that they abut and doesn’t believe this would require the developer to improve this portion of ground. o Asked for the consideration of an easement in lieu of a right-of- way vacation. The public hearing was closed with no other comments. Council and staff continued the discussion of the possible need for future use of the right-of-way and requested this item be continued with additional information that could accommodate both the City and the petitioner. A motion was carried to continue the proposed right-of-way vacation discussion to the Council Workshop scheduled for February 13, 2023. February 13, 2023: Council Workshop A discussion was held, and it was noted that Council will need to hold a new public hearing and it must be properly noticed before a final action may occur. May 9, 2023: Public notices were distributed in accordance with the Pasco Municipal Code regarding the public hearing scheduled for June 5, 2023. June 5, 2023: A public hearing was held regarding this proposed vacation at the Council Meeting. Interim CED Director, Mr. Jacob Gonzalez presented the vacation request and PMC criteria to grant vacation requests. o He stated staff’s primary concern is the effects of increased demand from proposed and future developments and that Staff does not support the request for vacation based on the necessary criteria of PMC 12.40.070. Public Works Director, Mr. Steve Worley stated: o He has experienced right-of-way vacations that later needed to be re-acquired for necessary improvements and is reluctant to support of kind what sure for know we until vacation this intersection improvements might be needed. o The removal of built items in a license agreement can be difficult. During the public hearing, a representative of the petitioner: o Expressed support for the vacation Page 200 of 273 o Distributed packets for Council that included communication between City staff and their staff related to the pending action (Exhibit G) o Stated the ultimate goal of his client is to have access to Oregon Ave o Stated the entire portion of the right-of-way be vacated so the land does not become a delinquent parcel of unimproved ground as the subject property does not abut Oregon Ave. o Contended that Snake River Agriculture, LLC’s request meets all the requirements of the RCWs and PMC. The public hearing was closed with no other comments. Council and staff discussion continued about the proposed right-of-way vacation, the PMC requirements, and the council expressed the need to read through the packet submitted by the representative of the petitioner. A motion was carried to continue the proposed right-of-way vacation to the June 20, 2023 Council meeting. June 20, 2023: Council Meeting Staff requested that the council deliberation be postponed until July 17th A motion was carried to extend deliberation on the matter until July 17th Council requested that staff present more specific information about the anticipated growth that would impact the right-of-way in question, and some possible ways that the right-of-way may be used in the future. Addressing questions and comments from previous meetings: A packet of information was provided by a representative of the petitioner during the council meeting on June 5th (Exhibit G). Below, staff provides clarification for a number of discussion points brought up in this packet, or council meetings. Subject: Responsibility for future improvements Clarification: The city is responsible for future improvements to the intersection. WSDOT does not have a need for the right-of-way, as the City and not WSDOT will be responsible for any necessary future improvements. As such, WSDOT did not object to vacating the right-of-way to the City. Based on conversation with WSDOT, they would not recommend the City vacate the right-of-way if there is a considerable amount of nearby undeveloped or underdeveloped land that could add additional trips to the intersection. The presentation includes a map of nearby undeveloped or underdeveloped land. Subject: A vacation is needed for a lot to have access to Oregon Ave. Clarification: Subject property 112480013, owned by Snake River Agriculture LLC, currently abuts the S Oregon Ave right-of-way and additional vacation Page 201 of 273 would not be a prerequisite for the site having access to Oregon. Subject: A vacation is needed to prevent there from being an orphaned parcel or piece of ground not improved. Clarification: Subject property 112480013, owned by Snake River Agriculture LLC, currently abuts the S Oregon Ave right-of-way. There is no parcel between the right-of-way and subject parcel 112480013. The abutting property owner would be responsible for right-of-way improvements when the property is developed. Subject: Landscaping requirements Clarification: The individual intending to develop the site (Mr. David Bruce) was made aware of the City's landscaping requirements via phone call on February 10th, 2023. It was discussed that the right-of-way would need to be landscaped and that xeriscaping is a low-maintenance alternative to conventional a 25.180.050(3)(c). PMC Additionally, PMC landscaping. 12.12.040, representative of the petitioner (Mr. Steve Bauman), has been made aware of these requirements during meetings with Mr. Rick White, Director of the Community the of the at time Development Economic and Department meeting. Subject: When will we know if we need the right of way? Clarification: that to expected is growth This experiencing is area rapid continue in the large amounts of undeveloped or underdeveloped land. We can determine now that there is an extremely high likelihood that the right-of-way will be needed for an intersection improvements project. As development occurs, we will learn more and will be able to fine-tune our understanding of the that anticipate Staff intersection. intersection of needs future the improvements will be needed in 10 to 20 years. Subject: Do we need the entire space in question for intersection improvements? Clarification: Likely not, but that cannot be easily determined now without extensive analysis based on a lot of assumptions. Note that right-of-way has many public purposes, only one of which is vehicular transportation. Other purposes include pedestrian features, bus, stops, utilities, etc. V.DISCUSSION: Based on the Pasco Municipal Code (PMC 12.40.070), all four of the following criteria must be met for a vacation to be granted. To evaluate these criteria, Staff reviewed Transportation Impact Analysis (TIA) reports that were created as part of the development process for recent Page 202 of 273 developments in the area such as Tarragon and Amazon. Staff also reviewed the Transportation System Master Plan (TSMP) adopted by Council on August 1st, 2022 (Resolution No. 4220) and corresponded with the local WSDOT office (see Exhibit E and F for email correspondence). PMC 12.40.070 states The City Council shall use the following criteria for approval of the petition: 1. The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole; Staff findings: Based on forecasted vehicle traffic, future bike/ped improvements, a vacation may have a detrimental impact on long-term traffic accessibility and circulation. Staff recommendation: Based on this criteria alone, the proposed right- of-way vacation does not meet the requirements of PMC 12.40.070 and should be denied. 2. The right-of-way is not contemplated or needed for future public use; Staff findings: Some portion of the right-of-way will likely be needed. Precisely determining a portion of the right-of-way that should be retained is difficult and risky. Staff recommendation: Based on this criteria alone, the proposed right- of-way vacation does not meet the requirements of PMC 12.40.070 and should be denied. 3. No abutting property will become landlocked, or its access substantially impaired; and Staff findings: Vacation would not cause an abutting property to become landlocked, or have its access substantially impaired. Staff recommendation: Based on this criteria alone, the right-of-way would be eligible for vacation if and only if the other three criteria are met. The other three criteria are not met, so the right-of-way does not meet the requirements of PMC 12.40.070 and the requested vacation should be denied. Note that a future gas station at this location has been mentioned, and no permit application has been received for this development. Site access is to be determined during the civil engineering site plan review process. A driveway on Oregon Ave. would likely be restricted to right- in/right-out. 4. The public needs shall not be adversely affected and the vacation will Page 203 of 273 provide a public benefit or serve a public purpose. Staff findings: Public needs are anticipated to be adversely affected, and the proposed vacation would not provide a substantial public benefit or serve a public purpose. Staff recommendation: Based on this criteria alone, the proposed right- of-way vacation does not meet the requirements of PMC 12.40.070 and should be denied. Supporting Documentation & Discussion The attached presentation (Exhibit D) includes information about each criterion and discussed potential future needs of the right-of-way such as intersection improvements including bicycle and pedestrian improvements, transit stops, landscaping and utilities. These improvements will likely be necessary to accommodate the large growth potential as the surrounding area has a lot of undeveloped or underdeveloped land, most of which already has active interest for development. A few projects in development are already predicting a significant impact on the intersection of S Oregon Ave and E A Street. The acquisition of right-of-way in anticipation of projected growth and increased traffic has posed persistent challenges in various areas of our community. Denying the request for vacation of the right-of-way helps avoid the premature relinquishment of public rights-of-way in a specific location that is currently undergoing rapid growth and attracting significant development interests. This decision aligns with our broader policy objectives of effectively managing and accommodate to resources future public preserving infrastructure demands and ensure the orderly development of the community. By maintaining possession of the right-of-way, we can proactively address future transportation needs, mitigate potential congestion issues, and safeguard the long-term interests of the community. License Agreement The possibility of a license agreement in lieu of a vacation has been discussed during prior meetings. Staff has a number of concerns with this proposal. The use of the area would need to be such that it would not be critical to the proposed development. Termination of the use of the use allowed in the license agreement may be resisted by the property owner through legal or political means, which would be detrimental to the public interest. Additionally, a license agreement may be detrimental to the City's ability to use the right-of- way for purposes aside of intersection improvements (utilities, etc.). Staff does not recommend that the City enter into a license agreement with the adjacent property owner for the use of the public right-of-way. Page 204 of 273 Staff Recommendation Staff does not believe the necessary criteria of PMC 12.40.070 has been met for this request for right-of-way vacation, and therefore recommends that the request be denied. Staff does not believe it is in the City's best interest to enter into a license agreement for the use of the proposed vacation area by the adjacent property owner. Page 205 of 273 Exhibit A Page 206 of 273 EXHIBIT A RIGHT OF WAY VACATION LOCATED IN THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 32 OF TOWNSHIP 9 NORTH IN RANGE 30 EAST OF THE WILLAMETTE MERIDIAN, CITY OF PASCO, FRANKLIN COUNTY, WASHINGTON. FOUND 2 1 2" B.O.R. BRASS CAP IN CASE @ INTX. WEHE & "A" ST., MOSTLY ILLEGIBLE CITY OF PASCO-ID: 56 F EXISTING CURB & \ GUTTER" �PBS 29 R/W VACATION 12,150 S.F. 0.28 AC. PBS Engineering and Environmental Inc. pbsusa.com 0 0 0 0 I") Ol !J.l Ol lX) Ol � N N b 0 l/) DRAWN BY: OWN CHECKED BY: ADM FOUND 3" BRASS CAP @ INTX. OF "A"ST & ELM -CENTER PUNCH ONLY, ILLEGIBLE S89"44'05"W 1321.19' E.ASTREET Scale 1" = 60' I 1 30 60 08/26/2022 120 1321.94' �.;;.;.;..;;..;.. _____ -(co FOUND 5 8" REBAR NO CAP @ CL DIRT ROAD SCALE: 1" = 60' DATE: 08/26/2022 PROJECT NO.: 663!!1.000 SHEET _1_ OF _2_ Page 207 of 273 EXHIBIT A RIGHT OF WAY VACATION LOCATED IN THE NORTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 32 OF TOWNSHIP 9 NORTH IN RANGE 30 EAST OF THE WILLAMETTE MERIDIAN, CITY OF PASCO, FRANKLIN COUNTY, WASHINGTON. LEGAL DESCRIPTION A PORTION OF RIGHT OF WAY, LOCATED IN THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 32, TOWNSHIP 9 NORTH, RANGE 30 EAST OF THE WILLAMETTE MERIDIAN, IN THE CITY OF PASCO, COUNTY OF FRANKLIN, STATE OF WASHINGTON DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SECTION 32 BEING A FOUND 2 1 /2" BUREAU OF RECLAMATION BRASS CAP IN CASE; THENCE SOUTH 00"24'18" EAST ALONG THE EASTERLY SECTION LINE OF SAID SECTION 32 A DISTANCE OF 40.00 FEET TO THE INTERSECTION WITH THE SOUTHERLY RIGHT OF WAY MARGIN OF EAST "A" STREET; THENCE SOUTH 00"24'18" EAST CONTINUING ALONG SAID EASTERLY SECTION LINE A DISTANCE OF 3.01' TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 00"24'18" EAST CONTINUING ALONG SAID EASTERLY SECTION LINE A DISTANCE OF 296.99 FEET; THENCE SOUTH 89"44'04" WEST LEAVING SAID EASTERLY SECTION LINE A DISTANCE OF 16.99 FEET TO A POINT ON THE ARC OF A NON TANGENT CURVE TURNING TO THE LEFT, HAVING A RADIUS OF 1,482.31 FEET; THE RADIUS POINT OF WHICH BEARS SOUTH 80"52'31" WEST; THENCE ALONG SAID CURVE, HAVING AN ARC LENGTH OF 195.84 FEET, WITH A DELTA ANGLE OF 07"34'12", A CHORD BEARING OF NORTH 12"54'35" WEST, AND A CHORD LENGTH OF 195.70 FEET TO A POINT OF REVERSE CURVATURE TURNING TO THE RIGHT, HAVING A RADIUS OF 85.00 FEET; THENCE ALONG SAID CURVE, HAVING AN ARC LENGTH OF 135.20 FEET, WITH A DELTA ANGLE OF 91"07'50", A CHORD BEARING OF NORTH 28"52'20" EAST, AND A CHORD LENGTH OF 121.39 FEET TO THE TRUE POINT OF BEGINNING. HAVING AN AREA OF 12, 150 SQUARE FEET, 0.28 ACRES, MORE OR LESS. LINE TABLE LINE BEARING DISTANCE L1 S89'44'04"W 16.99' L2 S00'24'18"E 3.01' L3 S00"24'18"E 40.00' 08/26/2022 CURVE TABLE CURVE RADIUS ARC LENGTH CHORD LENGTH CHORD BEARING DELTA ANGLE C1 1482.31' 195.84' 195.70' S1 2'54' 35"E 7"34'12" C2 85.00' 135.20' 121.39' N28·52•2o"E 91 "07'50" ■PBS PBS Engineering and Environmental Inc. pbsusa.com DRAWN BY: DVWV CHECKED BY: ADM SCALE: NIA PROJECT NO.: 66381.000 DATE: 08/26/2022 SHEET _2_ OF --2_ Page 208 of 273 Exhibit B Page 209 of 273 Vicini Item:South Oregon Avenue Street Right-of-Way VacationtyApp1icant(s):Snake River Agriculture c/0 Steve West lag is..--=...":..___.Page 210 of 273 Exhibit C Page 211 of 273 Overview Map Page 212 of 273 Exhibit D Page 213 of 273 Oregon Ave Right of Way Vacation Snake River Ag July 17th, 2023Page 214 of 273 Vacation Process Overview ▪Evaluation of Right-of-Way (ROW) vacation criteria provided in PMCs ▪Possible actions: ▪Grant requested vacation ▪Grant portion of requested vacation ▪Deny Requested Vacation ▪Stipulate a license agreement with City-dictated terms as condition of ROW vacation (PMC 12.40.080)Page 215 of 273 Oregon Ave: City Street & State Hwy ▪Oregon Ave ▪Principal Arterial/T-2 Freight Route (4 mil to 10 mil tons of freight/year) ▪E. A Street ▪Minor Arterial/T-3 Freight Route (300k to 4 mil tons of freight/year) ▪Truck Freight Economic Corridors ▪Essential to current and future industrial development, and long-term economic vitality of PascoPage 216 of 273 Oregon Ave: City Street & State Hwy ▪City & WSDOT share joint jurisdiction & management ▪City funds improvements & leads improvement projects ▪City procures right-of-way as needed ▪WSDOT is a stakeholder in process ▪Staff corresponded with WSDOT to clarify meaning of previous email. Jacob Prilucik (WSDOT South Central Region Development Services Lead) email dated 6/12/2023 “I talked to Paul [Gonseth] and confirmed he was speaking only to WSDOT’s needs for the r/w.Should the city foresee a need for this r/w in the future, it is their prerogative to retain it.”Page 217 of 273 Summary Only vacate if all criteria are met ▪Criteria 1: The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole. ▪Criteria 2: The right-of-way is not contemplated or needed for future public use. ▪Criteria 3: No abutting property will become landlocked, or its access substantially impaired ▪Criteria 4: The public needs shall not be adversely affected and the vacation will provide a public benefit or serve a public purpose. Possible Actions: ▪Grant requested vacation ▪Grant portion of requested vacation ▪Deny Requested Vacation ▪License AgreementPage 218 of 273 Vacation Criteria #1 ▪Criteria #1: The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole.Page 219 of 273 Vacation Criteria #2 ▪Criteria #2: The right-of- way is not contemplated or needed for future public use.Page 220 of 273 Vacation Criteria #1 & #2 Data Sources: Traffic Impact Analysis reports (TIAs), Transportation System Master Plan (TSMP) ▪Volume/Capacity (V/C) ratio 0.23 in 2019 ▪2022 V/C measured as 0.44 (without Tarragon) ▪2026 V/C forecasted to be 0.60 (with Tarragon and 2% growth per year) A few large-scale projects have a significant impact, which is hard to predictPage 221 of 273 Vacation Criteria #1 & #2 2032 2036 0 0.2 0.4 0.6 0.8 1 1.2 2015 2020 2025 2030 2035 2040 2045V/C RatioYear Oregon Ave. & E A Street Forecast of Intersection Performance 0 0.5 1 1.5 2 2.5 0 200 400 600 800 1000 1200 1400V/C RatioAcres of Development Oregon Ave. & E A Street Acres of Growth vs. V/C Ratio Page 222 of 273 Vacation Criteria #1 & #2 Trip Distribution Forecasts from TIAs Source: Tarragon TIA (SEPA2022-076)Page 223 of 273 Conceptual Intersection Improvements Scenario #1: Signalized Intersection Vacation Criteria #1 & #2 ▪Criteria #1: The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole. ▪Criteria #2: The right-of- way is not contemplated or needed for future public use.Page 224 of 273 Conceptual Intersection Improvements Scenario #2: Round-About Vacation Criteria #1 & #2 ▪Criteria #1: The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole. ▪Criteria #2: The right-of- way is not contemplated or needed for future public use.Page 225 of 273 Vacation Criteria #1 & #2 ▪Significant development with high bike/ped use to the South of this intersection (Osprey Point) ▪Round-about approaches would take more space than configuration shown ▪Substantial amount of ROW anticipated to be needed in future, extents hard to define now. ▪ROW is being contemplated for future use ▪Loss of ROW could have adverse impact on traffic accessibility and circulation Page 226 of 273 Vacation Criteria #1: Findings ▪Criteria #1: The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole. ▪Staff findings: Vacation may impact long- term traffic accessibility and circulation ▪Staff recommendation: Based on Criteria #1 alone, the right-of-way does not meet the criteria of PMC 12.40.070.Page 227 of 273 Vacation Criteria #2: Findings ▪Criteria #2: The right-of-way is not contemplated or needed for future public use. ▪Staff findings: Some portion of the right-of- way likely needed. Precisely determining a portion of right-of-way that should be retained would be difficult and risky. ▪Staff recommendation: Based on Criteria #2 alone, the right-of-way does not meet the criteria of PMC 12.40.070.Page 228 of 273 Vacation Criteria #3 ▪Criteria #3: No abutting property will become landlocked, or its access substantially impaired ▪Staff findings: Vacation would not cause an abutting property to become landlocked, or have its access substantially impaired. ▪Staff recommendation: Based on Criteria #3, the right-of- way would be eligible for vacation if and only if the other three criteria are met. Notes: A gas station has been mentioned, no permit application has been received. Site access to be determine during civil engineering site plan review process, a driveway on Oregon Ave. would likely be restricted to right-in/right-outPage 229 of 273 Vacation Criteria #4 ▪Criteria #4: The public needs shall not be adversely affected and the vacation will provide a public benefit or serve a public purpose. ▪20-year tax collection would be around $4k. ▪Appraised value is $30k. ▪Case study: Yakima Valley, around $1 million dollars for under 1,000 square feet of land including a couple parking stalls ▪Tax collection of newly vacated land as a public benefit is not a strong argument, as it would apply to every vacation.Page 230 of 273 Vacation Criteria #4 ▪Criteria #4: The public needs shall not be adversely affected and the vacation will provide a public benefit or serve a public purpose. ▪Staff findings: Public needs are anticipated to be adversely affected, and the proposed vacation would not provide a substantial public benefit or serve a public purpose. ▪Staff recommendation: Based on Criteria #4 alone, the proposed vacation does not meet the criteria of PMC 12.40.070.Page 231 of 273 License Agreement Logistics ▪What is a license agreement? ▪A license agreement grants a conditional right to use another’s property ▪Typical terms of a license agreement include:security deposit, indemnification, insurance, termination at discretion of the City with written notice, improvements could not interfere with the City’s long- term needs, licensee to restore area to pre-license conditions, Restoration of area following termination, accommodation of other entities who currently have a right to use the space, such as utility providersPage 232 of 273 License Agreement Logistics ▪Staff’s concerns with a license agreement for this situation ▪The proposed use is problematic ▪Parking would need to be “extra”, in addition to minimum code- required number of stalls ▪Termination of the use allowed in the license agreement may be resisted by the property owner through legal or political means, which would be detrimental to the public interest. ▪A license agreement would be detrimental to the City’s ability to use the right-of-way for purposes aside of intersection improvements (utilities, etc.)Page 233 of 273 Summary Only vacate if all criteria are met ▪Criteria 1: The vacation shall not adversely affect traffic accessibility and circulation within the immediate area or within the City as a whole. ▪Criteria 2: The right-of-way is not contemplated or needed for future public use. ▪Criteria 3: No abutting property will become landlocked, or its access substantially impaired ▪Criteria 4: The public needs shall not be adversely affected and the vacation will provide a public benefit or serve a public purpose. Possible Actions: ▪Grant requested vacation ▪Grant portion of requested vacation ▪Deny Requested Vacation ▪License AgreementPage 234 of 273 Exhibit E Page 235 of 273 Page 236 of 273 Exhibit F Page 237 of 273 1 Jon Padvorac From:Prilucik, Jacob <PrilucJ@wsdot.wa.gov> Sent:Monday, June 12, 2023 3:41 PM To:Jon Padvorac Cc:Jessica Brackin Subject:RE: [EXTERNAL] Oregon & A Street ROW vacation email [NOTICE: This message originated outside of City of Pasco -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Jon, I talked to Paul and confirmed he was speaking only to WSDOT’s needs for the r/w. Should the city foresee a need for this r/w in the future, it is their prerogative to retain it. Jacob Prilucik Office: (509) 577-1635 – prilucj@wsdot.wa.gov Cell: (509) 225-0637 From: Jon Padvorac <padvoracj@pasco-wa.gov> Sent: Thursday, June 8, 2023 2:01 PM To: Prilucik, Jacob <PrilucJ@wsdot.wa.gov> Cc: Jessica Brackin <brackinj@pasco-wa.gov> Subject: [EXTERNAL] Oregon & A Street ROW vacation email WARNING: This email originated from outside of WSDOT. Please use caution with links and attachments. Jacob, Attached is the email you requested. If a clarifying email is sent, would you mind asking your folks send it to me? I will route it to the necessary parties. Sincerely, Jon Padvorac | City Engineer Community & Economic Development 525 N. 3rd Avenue | Pasco, WA 99301 Office: (509) 545-3445 Cell: (509) 316-6636 padvoracj@pasco-wa.gov This email and your response are considered a public record and will be subject to disclosure under Washington’s Public Records Disclosure Act Page 238 of 273 Exhibit G Page 239 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 240 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 241 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 242 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 243 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 244 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 245 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 246 of 273 Packet Provided by Steve Bauman to Council on June 5th Council MeetingPage 247 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 248 of 273 Packet Provided by Steve Bauman to Council on June 5th Council MeetingPage 249 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 250 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 251 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 252 of 273 Packet Provided by Steve Bauman to Council on June 5th Council MeetingPage 253 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 254 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 255 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 256 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 257 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 258 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 259 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 260 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 261 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 262 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 263 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 264 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 265 of 273 Packet Provided by Steve Bauman to Council on June 5th Council MeetingPage 266 of 273 Packet Provided by Steve Bauman to Council on June 5th Council Meeting Page 267 of 273 AGENDA REPORT FOR: City Council June 21, 2023 TO: Adam Lincoln, City Manager City Council Regular Meeting: 7/17/23 FROM: Debra Barham, City Clerk City Manager SUBJECT: Arts & Culture Commission Appointment I. REFERENCE(S): Resolution No. 4262 - Appointments to City Boards and Commissions Candidate Application - Council only II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: MOTION: I move to confirm Mayor Barajas's appoint of Aislin Maloney to the Arts & Culture Commission as its Youth Representative, Position No. 7, with a term from July 17, 2023 to January 1, 2024. III. FISCAL IMPACT: N/A IV. HISTORY AND FACTS BRIEF: through Commission Culture and Arts the established Council City The Ordinance No. 4472 in November of 2019 to advise the City Council on matters relating to public art and culture; including procurement, placement and maintenance of public art and to serve as the City’s primary resource in matters of public art and culture. The Arts & Culture Commission member representation consists of the following: Community Member: Persons of public agencies, organizations enhancing Pasco’s quality of life or, persons working outside of professional practice in the arts but who demonstrate a deep interest in and understanding of public art activities. Member is required to live, work, or own business within Pasco city limits. • Position No. 1 Page 268 of 273 • Position No. 2 Art Professional: Persons in professions such as art directors, educators, managers/administrators, dealers and/or individuals enrolled in higher education art programs. • Position No. 3 • Position No. 4 • Position No. 5 Artist: Including but not limited to: painting, sculpture, music, literature, architecture, and performing arts. Member is required to live, work, or own business within Pasco city limits. • Position No. 6 Youth Representative: Person between the ages of 15 to 20 years old at the time of appointment, nexus to Pasco is required. • Position No. 7 With the exception of the Youth Representative, the standard term for this appointment is four years. The Youth Representative terms ends on each even year. As outlined in Resolution No. 4262, the Council Subcommittee, consisting of Mayor Barajas, Mayor Pro Tem Maloney and Councilmember Campos met to review the application packet. Mayor Pro Tem Maloney recused himself from participating in the discussion of the candidate as he is related to the applicant. Mayor Barajas and Mr. Campos reviewed the application. After a brief discussion, it was confirmed that Ms. Maloney was a qualified and appropriate individual to fill the vacant Youth Representative position. There were no other current candidates to consider for Position No. 7. V. DISCUSSION: Mayor Barajas requests Council's concurrence in her appointment of Aislin Maloney to the Arts & Culture Commission. Page 269 of 273 RESOLUTION NO.4262 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; and 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 far 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 Resolution—BC Interview&Appointment Process- 1 Page 270 of 273 each vacancy to be filled. The Council subcommittee shall consider the following factors, including,but not limited to : a) Geographic representation b) Gender representation c) Ethnic representation d) Familial and financial relationships of board members e) Qualifications and expertise related to the subject matter of the respective Board or Commission 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 24 day of October, 2022. Blan s Mayor ATTEST: APPROVED AS TO FORM: Debra Barham, CMC err Fer I aw, PLLC City Clerk City torneys Resolution—BC Interview&Appointment Process-2 Page 271 of 273 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 272 of 273 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 273 of 273