HomeMy WebLinkAbout2023.07.24 Council Workshop Packet
AGENDA
City Council Workshop Meeting
7:00 PM - Monday, July 24, 2023
Pasco City Hall, Council Chambers & GoToWebinar
Page
1. MEETING INSTRUCTIONS for REMOTE ACCESS - The Pasco City Council
Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum
Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive
and on the City’s Facebook page at www.facebook.com/cityofPasco.
To listen to the meeting via phone, call (415) 655-0060 and use access code
307-404-066.
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
4. VERBAL REPORTS FROM COUNCILMEMBERS
5. OATH OF OFFICE - FIRE CHIEF
4 - 5 (a) Oath of Office - City of Pasco's Fire Chief
Mayor Blanche Barajas to administer the Oath of Office to Pasco Fire
Chief Kevin Crowley
6. RECESS (5 to 10 Minutes)
7. ITEMS FOR DISCUSSION
6 - 47 (a) Ordinance - Amending Pasco Municipal Code Title 17 Sign Code
Related to Murals
Jeff Arango, AICP and Lesley Bain, FAIA, APA with Framework will
present the recommendations for the murals and art in downtown
Pasco.
Page 1 of 236
48 - 66 (b) Ordinance - Amending Pasco Municipal Code Title 25 Related to
Corner Lot Fencing (CA2021-009)
67 - 117 (c) Continued Discussion of Strategic Planning for Drug Use, Crime
and the Effects on the Community
118 - 132 (d) Resolution - Amendment No. 1 to the Prosecutorial Services
Agreement with Rio Foltz, PLLC
133 - 196 (e) Introduction of Bond Ordinances
197 - 232 (f) Discussion of Ziply Fiber Franchise Agreement
233 - 234 (g) Utility Billing Conversion Update
8. MISCELLANEOUS COUNCIL DISCUSSION
9. EXECUTIVE SESSION
10. ADJOURNMENT
11. ADDITIONAL NOTES
235 - 236 (a) Adopted 2020-2021 Council Goals (Reference Only)
(b) REMINDERS
• Monday, July 24, 4:00 PM: Hanford Area Economic
Investment Fund Advisory Committee Meeting – Ben
Franklin Transit Main Conference Room
(COUNCILMEMBER PETE SERRANO, Rep.)
• Tuesday, July 25 5:00 PM: HAPO Center (TRAC) Advisory
Board Meeting – HAPO Center (COUNCILMEMBER
JOSEPH CAMPOS and MAYOR PRO TEM CRAIG
MALONEY)
• Thursday, July 27, 4:00 PM: TRIDEC Board Meeting – 7130
W. Grandridge Blvd., Kennewick (COUNCILMEMBER
IRVING BROWN, Rep.; COUNCILMEMBER DAVID MILNE,
Alt.)
• Thursday, July 27, 5:30 PM: Benton Franklin Community
Action Connections Board Meeting – 720 Court Street,
Pasco (COUNCILMEMBER ZAHRA ROACH, Rep.;
COUNCILMEMBER PETE SERRANO, Alt.)
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.
Page 2 of 236
Audio equipment available for the hearing impaired; contact the
Clerk for assistance.
Servicio de intérprete puede estar disponible con aviso. Por favor
avisa la Secretaria Municipal dos días antes para garantizar la
disponibilidad. (Spanish language interpreter service may be
provided upon request. Please provide two business day's notice
to the City Clerk to ensure availability.)
Page 3 of 236
AGENDA REPORT
FOR: City Council July 7, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Debra Barham, City Clerk
City Manager
SUBJECT: Oath of Office - City of Pasco's Fire Chief
I. REFERENCE(S):
Oath
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Mayor Blanche Barajas to administer the Oath of Office to Pasco Fire Chief
Kevin Crowley
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
Kevin Crowley joined the City of Pasco as its Fire Chief on July 3, 2023.
V. DISCUSSION:
Fire Chief Crowley's Oath of Office will be administered by Mayor Barajas. Then
a short recess will follow.
Page 4 of 236
OATH OF OFFICE
STATE OF WASHINGTON}
County of Franklin } ss.
City of Pasco
I, Kevin Crowley do solemnly swear (or affirm) that I will support the Constitution of the United
States of America and the Constitution and laws of the State of Washington, and all local ordinances, and
that I will faithfully and impartially perform and discharge the duties of Fire Chief for the City of Pasco.
Kevin Crowley
Subscribed and sworn to before me this 24th day of July, 2023.
Mayor Blanche Barajas
Page 5 of 236
AGENDA REPORT
FOR: City Council July 19, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Jacob Gonzalez, Director
Community & Economic Development
SUBJECT: Ordinance - Amending Pasco Municipal Code Title 17 Sign Code Related
to Murals
I. REFERENCE(S):
Draft Ordinance
Memorandum: Mural Code and Paint Pasco - Public Mural Program
Presentation by Framework
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Jeff Arango, AICP and Lesley Bain, FAIA, APA with Framework will present the
recommendations for the murals and art in downtown Pasco.
III. FISCAL IMPACT:
None.
IV. HISTORY AND FACTS BRIEF:
In January 2023, the City Council officially adopted the Downtown Pasco Master
Plan, a comprehensive framework comprising the vision, goals, and strategies
that will shape the development of Downtown Pasco. This plan is the result of
extensive community input, rigorous analysis of existing conditions, best
practices, and a keen focus on leveraging the unique opportunities present in
our vibrant city center.
A central objective of the Downtown Pasco Master Plan is to cultivate a
downtown that truly reflects the essence of Pasco's History, People, and Culture.
To accomplish this, a significant emphasis has been placed on enhancing the
artistic landscape, both through private and public art installations.
In alignment with the Master Plan's vision, one of the key initiatives involves the
establishment of a public mural and art program. This endeavor necessitates a
Page 6 of 236
crucial modification to the Pasco Municipal Code (PMC), separating "murals"
from the Sign Code (PMC Title 17). Additionally, a City -led mural program will
be established, collaboratively developed with the valuable input of community
partners.
In collaboration with various City departments, the public, and the consultant
team (Framework), staff prepared a draft amendment to the PMC. This
amendment serves as a vital step in realizing the vision outlined in the Downtown
Pasco Master Plan.
V. DISCUSSION:
Presentation from Framework (Consultant).
Page 7 of 236
Ordinance – Amending PMC 17 Sign Code - 1
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING PASCO MUNICIPAL CODE TITLE 17 SIGN CODE BY
AMENDING CHAPTER 17.10 DEFINITION, SECTIONS 17.15
INTERPRETATION OF SIGN ALLOWANCE TABLE AND 17.20.010
PERMITS, FESS AN INSPECTION, AND CREATING A NEW CHAPTER 17.50
MURALS.
WHEREAS, the City Council adopted the first comprehensive Downtown Pasco Master
Plan in January 2023; and
WHEREAS, the Downtown Pasco Master Plan Framework includes a vison for creating
a Downtown that reflects Pasco’s history, landscape, and culture; and
WHEREAS, the vision is to be implemented by establishing a public mural and public art
program; and
WHEREAS, the City Council recognizes that the addition of public art in Downtown
Pasco is a benefit that embraces both the cultural and physical landscape of the community.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON DO ORDAIN AS FOLLOWS:
Section 1. Amending PMC Chapter 17.10 Definitions is hereby amended and shall
read as follows:
17.10.010 Generally.
For the purpose of this title, certain abbreviations, terms, phrases, words, and their
derivatives shall be construed as specified in this chapter and are to be used only
for the implementation of this title. Words used in the singular include the plural,
and the plural the singular. Words used in the masculine gender include the
feminine, and the feminine the masculine.
“Alley” means a public street not designed for general travel and used primarily as
a means of access to the rear of residences and business establishments.
“Building” means any structure built for the support, shelter, or enclosure of
persons, animals, chattels, or property of any kind.
“Building code” means the building codes of the City adopted by PMC Title 16.
“Building Official” means the Building Official of the City and/or the person
designated to enforce the sign code by the City Manager.
Page 8 of 236
Ordinance – Amending PMC 17 Sign Code - 2
“Building line” means a line established by ordinance beyond which no building
may extend.
“Change of copy” means the change of a logo, and/or message upon the face or
faces of a legal sign.
“City” means the City of Pasco, Washington.
“Community event” means a community-wide event open to the general public and
sponsored by a public agency, a public or private school, or a not-for-profit civic
organization.
“Curb line” means the line at the face of the curb nearest to the street or roadway.
In the absence of a curb, the City Engineer shall establish the curb line.
“Display surface” means the area made available by the sign structure for the
purpose of displaying the advertising message.
“District” or “zoning district” means any district established pursuant to the
provisions of PMC Title 25.
“Durable” means a nonbiodegradable material that withstands degradation from the
elements such as weatherproof card stock, aluminum, metal, UV-protected plastics,
treated or painted wood concrete, stone and similar materials.
“Erects” means to build, construct, attach, place, suspend, or affix, including the
painting of a wall sign.
“Face of building” means the general outer surface of any exterior wall of a building
or other structure.
“Facade” means the entire building front or street wall face, including the grade to
the top of the parapet or eaves, and the entire width of the building elevation.
“Fence – subdivision” means a common fence constructed along the rear line of
residential lots that back on arterial streets and constructed as part of the subdivision
improvements.
“Filling station, public motor fuels” means any area of land, including any structure
or part thereof, that is used or designed to be used for the supply of motor fuels;
also deemed to be included within this term shall be: Any area or structure used or
designed to be used for polishing, greasing, washing, spraying (other than paint),
dry cleaning, or otherwise cleaning or servicing such motor vehicles.
Page 9 of 236
Ordinance – Amending PMC 17 Sign Code - 3
“Frontage” means the measurement of the length of the property line or building
front.
“Hearing Examiner” means the Pasco Hearing Examiner as set forth in Chapter
25.195 PMC.
“Incombustible material” means any material which will not ignite at, or below, a
temperature of 1,200 degrees Fahrenheit during an exposure of five minutes, and
which will not continue to burn or glow at that temperature.
“Mansard roof” means a sloped roof or roof-like facade architecturally able to be
treated as a building wall.
“Multiple-building complex” means a group of commercial or industrial structures.
“Multiple-tenant building” means a single structure that houses more than one retail
business, office or commercial venture, but that does not include residential
apartment buildings sharing the same lot, access and/or parking facilities.
“Nonconforming signs” are those which were lawfully installed, but which do not
comply with the requirements of this title.
“Nonstructural trim” means the molding, batons, caps, nailing strips, latticing,
cutouts or letters and walkways that are attached to the sign structure.
“Parapet” means a false front or wall extension above the roof line.
“Parcel” means the real property on which a business is located or the portion of
real property designated for use of a business. Parcel shall include all adjacent
property used by a business including yards, parking lots, and storage yards. Where
more than one business is located within a building, the property on which that
building is located is considered one parcel.
“Perimeter” means a square or rectangle required to enclose the sign area.
“Periphery of right-of-way” means that portion of the right-of-way lying behind the
street improvement. (See definition for “Street improvements.”)
“Person” means and includes persons, firms, partnerships, associations,
corporations, and other business entities.
“Premises” means the real estate as a unit, upon which is displayed the sign or signs
mentioned in this chapter.
Page 10 of 236
Ordinance – Amending PMC 17 Sign Code - 4
“Private road or driveway” means every way or place in private ownership and used
for travel of vehicles by the owner or those having express or implied permission
from the owner, but not by other persons.
“Projection” means the distance by which a sign extends over public property or
beyond the property line.
“Right-of-way (ROW)” means that area of land dedicated for public use or secured
by the public for purposes of ingress and egress to abutting property and other
public purposes, including that space between the adjacent property line and the
back of the street and/or sidewalk improvements.
“Roadway” means that portion of a highway improved, designed, or ordinarily used
for vehicular travel, exclusive of the sidewalk or shoulder. In the event a highway
includes two or more separated roadways, the term “roadway” shall refer to any
such roadway separately but shall not refer to all such roadways collectively.
“Roofline” means the top edge of a roof or parapet or the top line of a building
silhouette.
“Setback” means the distance measured on a horizontal plane between a public
right-of-way line or a property line and the closest portion of a sign thereto.
“Sidewalk” means that property between the curb lines or the lateral lines of a
roadway and the adjacent property, set aside and intended for the use of pedestrians,
or such portion of private property parallel and in proximity to a public highway
and dedicated to use by pedestrians.
“Sign” means a name, identification, description, display or illustration that is
affixed to, or represented directly or indirectly upon, a building, structure, or piece
of land and that directs attention to an object, product, place, activity, person,
institution, organization or business. However, a “sign” shall exclude any display
of official court or public office notice, emblem or insignia of a nation, political
unit, school, or religious group. A “sign” shall not include a sign located completely
within an enclosed building unless the public may view the sign from a roadway or
sidewalk, or the context of this chapter shall so indicate.
“Sign, abandoned” means a sign that no longer correctly directs or exhorts any
person nor advertises a bona fide business, lessor, owner, product or activity
conducted or available on the premises whereon such sign is located.
“Sign area” means the total area of a sign visible from any one viewpoint or
direction, excluding the sign support structure, architectural embellishments, or
framework that contains no written copy, and includes only one side of a double-
faced sign. Individual letter signs using a wall as the background without added
decoration or change in wall color shall be calculated by measuring the perimeter
Page 11 of 236
Ordinance – Amending PMC 17 Sign Code - 5
enclosing each letter. The combined total area of each individual letter shall be
considered the total area of the sign. Module signs consisting of more than one sign
cabinet shall be computed by adding together the total area of each module.
Perimeter or sign area shall be established by the smallest rectangle enclosing the
extreme limits of the letter module or advertising message being measured.
“Sign – awning” means a sign that is hung from and below a building awning or
canopy that may extend outwards under the awning or canopy and over the
walkway or parking area.
“Sign – banner” means flexible material on which a sign is painted or printed that
is attached to a building or displayed on the grounds.
“Sign – billboard” means a sign or sign structure supported by one or more uprights
and braces in the ground or on a building roof upon which general advertising
matter is placed, usually by the poster method, erected entirely upon private
property.
“Sign – blade or projecting” means a sign that is wall-mounted perpendicular to the
building that may extend upwards and above the facade and/or outwards and over
the walkway or parking area.
“Sign – business” means a sign which directs attention to a business or profession
conducted, or to a commodity, service, or entertainment sold, or offered upon the
premises where such sign is located, or to which it is affixed.
“Sign – canopy” means a sign that is painted onto the face or edge of an awning or
canopy that is mounted to the building facade.
“Sign – changing message center” means an electronically controlled public service
time and temperature sign, message center, or readerboard where different copy
changes of a public service or commercial nature are shown on the same lamp bank.
“Sign – combination” means any sign incorporating any combination of the
features of freestanding, projecting and roof signs. “Combination sign” shall
include signs commonly referred to as “fin signs.”
“Sign – community event regional” means a sign that identifies events occurring at
a regional sports/entertainment/convention/trade facility containing 60 or more
acres located within 1,000 feet of a freeway interchange and adjacent to a highway
of statewide significance.
“Sign – construction” means a temporary sign designating the contractor(s),
architect(s), and engineer(s) participating in a construction project underway on the
same premises. A construction sign may also include the name of the project.
Page 12 of 236
Ordinance – Amending PMC 17 Sign Code - 6
“Sign – directional” means any sign designated and used solely for the purpose of
indicating the location or direction of a place on the premises upon which the sign
is located.
“Sign – directional off-premises kiosk” means a structure erected by the City or a
private party through a license agreement with the City in approved locations
bearing multiple off-premises directional signs.
“Sign – directional traffic” means a sign that is located to guide or direct pedestrian
or vehicular traffic to parking entrances, exits and service areas.
“Sign – directory of tenants” means a sign that identifies the building or project
name and the tenants which share a single structure or development.
“Sign – double-faced” means a sign with two faces.
“Sign – electrical” means a sign or sign structure in which electrical wiring,
connections, and/or fixtures are used as part of the sign proper.
“Sign – flashing” means an electrical sign or portion thereof that changes light
intensity in a sudden transitory burst or that switches on and off in a constant pattern
with more than one-third of the light source that is not constant being off at any one
time.
“Sign – follow-through” means a sign which identifies the location of a business
for the purpose of participating in the Washington State Department of
Transportation Motorist Information Sign Program.
“Sign – freestanding pedestal” means a self-supported sign permanently attached
directly to the ground upon a pedestal base or monument foundation and not
attached to any building, wall or fence (also called pedestal or monument sign).
“Sign – freestanding pole” means a self-supported sign permanently attached
directly to the ground supported by upright poles or posts or braces placed on or in
the ground (also called ground or pole sign).
“Sign – freeway” means a freestanding sign located on the premises where the
business, product or service is located, with said sign being within 250 feet of I-
182, SR-395 or SR-12.
“Sign – freeway interchange” means a sign that provides only regional
identification for a group of businesses within an area defined by a state-recognized
business association where the businesses collectively occupy a minimum of 15
acres of land.
Page 13 of 236
Ordinance – Amending PMC 17 Sign Code - 7
“Sign – garage or yard sale” means a sign advertising a private sale of personal
household possessions; not for the use of any commercial venture.
“Sign height” means the vertical distance measured from the adjacent grade at the
base of the sign support to the highest point of the sign or sign structure, whichever
is higher.
“Sign – identification” means a sign of an informational nature that directs attention
to certain uses other than businesses, individual private residences.
“Sign – inflatable” means a large balloon or balloon-like object greater than 18
inches in any dimension that uses blown air or a gas to remain inflated.
“Sign – informational private” means a sign placed for the convenience of the
property owner used for the sole purpose of designating property control and
warning signs such as “no trespassing,” “no dumping,” “patrolled by dogs,” etc.
“Sign – informational public” means a sign placed for the convenience of the public
used for the sole purpose of designating restrooms, hours of operations, entrances
and exits to buildings and parking lots, help wanted, public telephones, public
notary, etc. Also included are plaques, tablets or inscriptions that are an integral
part of a building.
“Sign – interior” means any sign attached to the interior surface of the window of
any building or structure, or maintained within the building or structure.
“Sign – landmark” means a sign or plaque that is attached to the surface of the
building or on a site that identifies or describes the historical, cultural, social, or
other significance of a building or site.
“Sign – limited duration” means any sign advertising real estate sales or rentals or
construction projects utilized for a specified period of time.
“Sign, marquee or readerboard” means a sign that displays a changing message
using manually mounted lettering or electronic printout that may be mounted on a
building or freestanding pedestal or pole.
“Sign, marquee or readerboard – portable” means a sign that displays a changing
message using manually mounted lettering or electronic printout that may be
mounted on an easel, trailer, or other movable equipment.
“Sign – nameplate” means a sign which indicates no more than the name and
address of the resident of the premises.
Page 14 of 236
Ordinance – Amending PMC 17 Sign Code - 8
“Sign – nonconforming” means any sign lawfully constructed prior to the
enactment of the ordinance codified in this title, which fails to conform to the
provisions of this title.
“Sign – off-premises” means a sign that carries a message of any kind or directs
attention to a business, commodity, service, or entertainment conducted, sold, or
offered elsewhere than upon the premises where such sign is located, or to which it
is affixed. Signs identifying a business complex and containing the names of
multiple businesses within the complex shall not be considered an off-premises
sign.
“Sign – off-premises directional” means a sign providing directions to a public or
other community event or facility in a location different than the property on which
the sign is posted.
“Sign – off-premises informational” means a sign providing information about
events conducted at a public or other community facility in a location different than
the property on which the sign is posted.
“Sign – open house” means a sign welcoming viewers to a piece of residential real
estate that is being offered for sale.
“Sign – pedestrian-oriented” means a sign the primary purpose of which is to
provide information for pedestrians and bicyclists.
“Sign – political” means a temporary sign that identifies a candidate(s) for public
elective office; urges a particular vote on a ballot measure in a pending public
election, whether local, state or national; or expresses an opinion on a public issue.
“Sign – portable” means an unlighted business sign, including paper, cardboard,
wood or metal, that is capable of being moved easily and that is not permanently
affixed to the ground, structure or building. This includes a sidewalk or sandwich
board signs, except those worn by a person.
“Sign – poster” means a decorative placard or advertisement intended to advertise
a movie, theater production, video or CD, or other product or special event that is
being conducted or offered for sale.
“Sign – readerboard” means a lighted or unlighted business sign or part of a sign
on which the letters are readily replaceable such that the copy can be changed from
time to time at will.
“Sign – readerboard, portable” means a lighted or unlighted business sign or part
of a sign on which the letters are readily replaceable such that the copy can be
changed from time to time at will. A portable readerboard is capable of being
Page 15 of 236
Ordinance – Amending PMC 17 Sign Code - 9
moved or trailer mounted and is not permanently affixed to the ground, structure or
building.
“Sign – real estate” means a temporary sign erected by the owner, or his/her agent,
that advertises the real estate upon which the sign is located for rent, lease or sale,
or directing people to the property.
“Sign – real estate directional” means a temporary and/or portable sign that is
intended to assist people finding the location of difficult-to-locate property that is
for sale, rent, or lease.
“Sign – revolving” means any sign that rotates or turns in a circular motion by
electrical or mechanical means and does not exceed eight revolutions per minute.
“Sign – roof” means a business sign erected upon or above a roof or parapet of a
building or structure. Mansard roof signs shall be considered wall signs.
“Sign – sandwich or A-frame” means a temporary portable two-faced board-style
sign that is readily movable and has no permanent attachment to a building,
structure, or the ground.
“Sign – special event” means a temporary sign advertising activities concerning a
drive or event of a political, civic, seasonal, cultural, philanthropic, educational or
religious event or organization that will occur intermittently.
“Sign structure” means any structure supporting or capable of supporting any sign
defined in this chapter. A sign structure may be a single pole or may or may not be
an integral part of the building or structure.
“Sign – temporary” means any real estate, open house, special event, garage sale,
or political sign corresponding to a specific event and displayed for a limited period
of time.
“Sign – tract” means signs used for the sale of real property in a platted subdivision.
“Sign – wall” means any sign, mural or graphic design which is attached parallel
to, or flat against, or is painted on, the wall or exterior of a building or structure
having a commercial message or identification.
“Sign – wall mural or artwork” means a mural or artwork painted on a building wall
that may or may not have a commercial message, name, or other advertisement
incorporated. (Exterior surface color alone is not considered a mural or artwork.)
“Sign – wall-mounted” means a sign attached or erected parallel to and extending
from the facade or wall of any building to which it is attached. A wall sign is
supported through its entire length with the exposed face of the sign parallel to the
Page 16 of 236
Ordinance – Amending PMC 17 Sign Code - 10
plane of said wall or facade. A sign painted on the wall of a building or a sign
painted or attached to a marquee shall be considered a wall-mounted sign.
“Sign – window” means any sign which is painted or mounted onto an exterior
window pane, or which is hung directly inside the window, including
advertisements for services or products in the form of decals, emblems, paint,
exposed neon, banners, etc., within three feet of the window pane.
“Sign – window, temporary indoor” means any sign (or poster) of a temporary
nature displayed within a commercial building on the inside of the glass or in close
proximity to the window and may be viewed by persons outside of the building.
“Street” means a public or private way open to general public use including all
classes of roadways and excepting alleys, driveways, and interstate freeways, but
including major internal circulation corridors within parking lots.
“Street frontage” means the side of the building facing a street that abuts the
property on which the building is located.
“Street improvements” means the paved roadway, and adjoining curb, gutter,
sidewalk and landscaping.
“Structure” means anything constructed or erected, the use of which requires
location on the ground or attachment to something having location on the ground.
“U.L.” means Underwriters Laboratory.
Zone, Zoning District. See definition under “District.”
[Ord. 4190 § 1, 2014; Ord. 3909 § 1, 2009; Ord. 3790 § 2, 2006; Code 1970
§ 17.03.010.]
Section 2. Amending PMC Section 17.15.010 Interpretation of sign allowance table is
hereby amended and shall read as follows:
17.15.010 Interpretation of sign allowance table.
(1) The sign allowance table, as incorporated herein, determines whether a specific
sign is allowed in a zone district or by land use activity. The zone district or land
use activity is identified in the left column and the specific sign allowances are
located in the rows of the table.
(2) If no symbol or number appears in the table box at the intersection of the
column and row, the sign is not allowed in that category or is not subject to an
allowance.
Page 17 of 236
Ordinance – Amending PMC 17 Sign Code - 11
(3) If a number appears in the table box at the intersection of the column and row
or in the column or row heading, the sign may be allowed subject to the appropriate
requirement and specific conditions indicated in the table footnotes.
(4) All applicable requirements shall govern a sign whether or not the
requirements are cross-referenced in the table.
Sign Allowance Table
Permit requirement
| Material restrictions
| | Number of signs
| | | Allowable surface area in sq. ft. (1)
| | | | Height in feet (2)
| | | | | Projection over ROW to curb line
| | | | | | Spacing in linear feet (3)
| | | | | | | Visible ground plane/passage
area (4)
| | | | | | | | Setback from adjacent
property line
| | | | | | | | | Setback from ROW
in feet (5)
| | | | | | | | | |
| | | | | | | | | | Duration (days)
| | | | | | | | | | | Notes
| | | | | | | | | | | |
Access, landmark, and informational signs - all zones
entry/exit freestanding
pedestal/pole sign
ye
s
durable 1 4 4 5 0 per
exit/entr
y
landmark wall sign/plaque ye
s
durable 1 10 8 5 0 per
building
frontage
information
al - private
(6)
wall sign no durable 1 2 8 5 0 per
building
frontage
freestanding
pedestal/pole sign
no durable 1 6 4 5 0 per
street
frontage
Page 18 of 236
Ordinance – Amending PMC 17 Sign Code - 12
information
al - public
wall sign no durable 1 2 8 5 0 per
building
frontage
freestanding
pedestal/pole sign
no durable 1 6 4 5 0 per
street
frontage
Permanent signs
Residential districts - RT, R-S-20, R-S-12, R-S-1, R-1, RFAH-1/1A, R-2, R-3, R-4, RMHP
identificatio
n - dwelling
unit
wall sign no durable 1 2 8 5 0 per
property
freestanding
pedestal/pole sign
no durable 1 2 4 5 0 per
property
identificatio
n - bldg
complex
wall sign ye
s
durable 1 24 2
0
5 0 per
building
frontage
freestanding
pedestal/pole sign
ye
s
durable 1 24 4 5 0 per
street
frontage
daycare
facility
wall sign ye
s
durable 1 16 2
0
5 0 per
building
frontage
commercial freestanding
pedestal/pole sign
ye
s
durable 1 16 1
5
5 0 per
street
frontage
school/religi
ous use (15)
wall sign ye
s
durable 1 24 2
0
5 0 per
building
frontage
freestanding
pedestal/pole sign
ye
s
durable 1 40 1
5
5 0 per
street
frontage
freestanding
marquee/readerb
oard sign
ye
s
durable 1 24 1
5
5 0 per
street
frontage
Office/commercial districts - O, C-1, C-2, C-3, C-R, BP, I-1, I-2, I-3
Composite allowance - all sign surfaces
maximum
per sign
window sign (11) no transparent n
a
25
%
1
5
Page 19 of 236
Ordinance – Amending PMC 17 Sign Code - 13
per
building/stre
et frontage
awning sign per
business
ye
s
durable 1 24 1
5
-
2
8 may
extend
over
walkway
canopy sign ye
s
maintained n
a
25
%
2
4
-
2
8 may
extend
over
walkway
wall sign ye
s
durable n
a
25
%
n
a
1
4
0
wall sign -
murals/artwork
(7)
ye
s
maintained n
a
25
%
n
a
0 of
commerc
ial
message
blade/projecting
sign
ye
s
durable 1 12
5
-2 -
2
5 0
freestanding
pedestal sign
ye
s
durable 1 35
0
1
5
0 5 0
*freestanding
marquee/readerb
oard sign
ye
s
durable 1 48 1
5
5 0 per
street
frontage
*freestanding
pole - tenant
directory sign
ye
s
durable 1 12 3
5
0 6 5 0 up to 12
tenants
per sign
*freestanding
pole sign
ye
s
durable 1 35
0
3
5
0 6 5 0
off-premises
directional sign
(14)
ye
s
durable 1 5 1
5
5 0
Commercial/industrial districts - C-3, C-R, BP, I-1, I-2, I-3
maximum
per sign
freeway sign ye
s
durable 1 35
0
7
0
50
0
6 3
5
3
5
per
freeway
frontage
per freeway or freeway
interchange (9)
sign
ye
s
durable 1 48
0
7
0
50
0
6 3
5
3
5
per 15-
acre site
minimu
m
frontage
property
and freeway
readerboard (9)
sign
ye
s
durable 1 15
0
3
5
50
0
6 3
5
3
5
per 15-
acre site
Page 20 of 236
Ordinance – Amending PMC 17 Sign Code - 14
minimu
m
Limited duration signs
Undeveloped property
Residential -
lot
freestanding
pedestal/pole sign
ye
s
durable 1 24 8 5 0 15 after
closing
- tract freestanding
pedestal/pole sign
ye
s
durable 1 60 8 5 0 15 after last
closing
Commercial
- lot
freestanding
pedestal/pole sign
ye
s
durable 1 24 8 5 0 15 after
closing
- tract freestanding
pedestal/pole sign
ye
s
durable 1 60 8 5 0 15 after
closing
Construction wall/banner sign ye
s
durable 1 24 8 5 0 con
st
freestanding
pedestal/pole sign
ye
s
durable 1 32 8 5 0 con
st
Real estate sales/rentals per building or property
Residential
zones
window/poster
sign
no 1 2 0 15 after
closing
freestanding
pedestal/pole sign
(10)
no durable 1 6 8 5 0 15 after
closing
freestanding sign
(10)
no durable 2 2 8 5 0 15 after
closing
Commercial
zones (12)
window/poster
sign
no 1 2 0 15 after
closing
wall/banner sign no durable 1 6 2
0
5 0 15 after
closing
freestanding
pedestal/pole sign
(9)
no durable 1 6 8 5 0 15 after
closing
Temporary signs
Page 21 of 236
Ordinance – Amending PMC 17 Sign Code - 15
Open house
- real estate
sales
sandwich-
directional (10)
no durable 4 6 4 5 0 after
event
sandwich-site (10) no durable 1 6 4 5 0 after
event
Special event - sales, charities, etc.
Schools,
churches,
parks,
farmers mkt,
Xmas trees
sandwich-
directional (10)
no durable 4 6 4 5 0 after
event
sandwich-site (10) no durable 1 6 4 5 0 after
event
window poster no n
a
50
%
after
event
window banner no durable 1 16 0 after
event
wall sign/banner no durable 1 64 2
0
5 0 after
event
banner - mounted
freestanding pole
no durable 1 10 2
0
-
2
8 5 0 after
event
marquee/readerb
oard - portable
no durable 1 18 4 5 0 after
event
balloons (12) no biodegrada
ble
1
5
2
0
5 after
event
Residential
zones
sandwich-
directional (10)
no durable 2 6 4 5 0 after
event
sandwich-site (10) no durable 1 6 4 5 0 after
event
Commercial
zones
sandwich-
directional (10)
no durable 2 6 4 5 0 after
event
sandwich-site (10) no durable 1 6 4 5 0 after
event
window poster no n
a
50
%
after
event
window banner no durable 1 16 0 after
event
wall sign/banner no durable 1 64 2
0
5 0 after
event
Page 22 of 236
Ordinance – Amending PMC 17 Sign Code - 16
banner - mounted
freestanding pole
no durable 1 16 2
0
-
2
8 5 0 after
event
marquee/readerb
oard - portable
no durable 1 18 4 5 0 after
event
balloons (12) no biodegrada
ble
1
5
2
0
5 after
event
inflatables (13) ye
s
nonflamma
ble
1 35
0
7
0
25
0
5 0 after
event
SR-12/395
and I-182
inflatables (13) ye
s
nonflamma
ble
1 35
0
7
0
50
0
5 0 after
event
Political (16) freestanding no durable n
a
6 4 5 0 10 after
election
* Freestanding signs are not allowed within the downtown overlay zone.
1 The area within a continuous perimeter enclosing the outer limits of the sign face, but not including structural
elements, which are not a part of the display. The area of a two-sided sign equals the area of one side. The area
of a spherical, cubical, or polyhedral sign equals 1/2 the total surface area.
2 Height: measured from the average finished grade at the sign foundation.
Awning signs shall be at least 8 and no more than 16 feet above the walkway.
Blade/projecting signs shall not extend more than 10 feet above the building facade or 6 feet from the face of
the building.
3 Spacing: the linear distance between signs in feet.
4 The area under the sign that shall be free of obstructions to allow passage of pedestrians and vehicles.
5 Setback: shall be that portion of any sign or sign structure that is closest to the property line.
6 Private informational signs must be for an original purpose and may not simply repeat the same message over
and over.
7 Artwork shall not detract from appearance of other buildings in the immediate vicinity.
8 On private property adjacent to an arterial road: not within 100 feet of a public street intersection, 300 feet of
a residential district, within 250 feet of a freestanding sign of 200 sf of display area.
9 Freeway interchange signs must be located within 1,000 feet of an interchange, and 300 feet of ROW, on site
of business on a minimum 15-acre site.
10 Square feet per one face of a two-sided sandwich board.
11 Window signs may include credit card logos and advertise hours of operation and address.
12 Balloons shall be no larger than 18 inches in diameter, not attached to a roofline.
13 Inflatables shall be securely anchored to the ground and not create a traffic or other hazard in the event of
deflation.
Inflatables shall be measured by square feet of surface volume.
14 Off-premises directional signs shall be of the material, color, lettering font, and structure specified by the
Building Official.
15 Excepting Pasco High School Bulldogs stadium sign.
16 Campaign signs on private property are limited to 32 square feet in size.
[Ord. 3865 § 1, 2008; Ord. 3790 § 2, 2006; Code 1970 § 17.05.010.]
Section 3. Amending PMC Section 17.20.010 Permits, fees and inspection is hereby
amended and shall read as follows:
17.20.010 Permits, fees and inspection
Page 23 of 236
Ordinance – Amending PMC 17 Sign Code - 17
No sign shall be erected, constructed, altered, relocated or modified without first
obtaining a permit pursuant to the provisions of this title unless specifically
exempted herein.
(1) Permit – Number Required. A separate permit shall be required for a sign or
signs for each business location. If the business entity’s sign is part of a group of
signs for a business location, only one permit shall be required at the time of
application.
(2) Permit – Time Limitation. If, after the issuance of a sign permit, the operations
authorized thereunder are not completed or substantially completed within 180 days
after the date of the permit, such sign permit shall be automatically null and void.
(3) Revocation of Permit. The Building Official may, in writing, suspend or revoke
a permit issued under provisions of this chapter whenever the permit is issued in
error or on the basis of incorrect information or whenever the sign is in violation of
any ordinance, regulation or provision of this chapter.
(4) Change of Copy. The holder of a permit, for the duration thereof, shall have
the right to change the advertising copy on the structure or sign for which the permit
was issued, without being required to pay any additional fees.
(5) Wall Sign and Mural Maintenance. Failure to properly maintain the media
used within a painted wall sign or mural or artwork as defined herein shall be
sufficient grounds to revoke the sign permit.
(6) Interpretation. In all applications for permits where a matter of interpretation
arises, the most restrictive definition shall prevail. Approval shall be dependent
upon the showing that the proposed sign meets the specific size and type criteria
required under this title and is compatible with the surrounding environment. The
Building Official shall consider the proposed sign’s form, proportion, scale, color,
materials, surface treatment, overall sign size, and the size and styling of the
lettering considering its relationship with other nearby signs, other elements of the
street and site improvements and with adjacent structures.
[Ord. 3790 § 4, 2006; Code 1970 § 17.07.010.]
Section 4. Create PMC Chapter 17.50 Murals is hereby added and shall read as
follows:
Chapter 17.50
MURALS
17.50.010 Definitions
17.50.020 Purpose and Intent
17.50.030 Design and Cultural Intent
Page 24 of 236
Ordinance – Amending PMC 17 Sign Code - 18
17.50.040 Arts Commission Review
17.50.050 Required Submittal Requirements
17.50.060 Voluntary Submittal Requirements
17.50.070 Public Notice and Review Process
17.50.080 Review Criteria
17.50.090 Voluntary Guidelines
17.50.010 Definitions
“Wall mural or artwork” means a mural or artwork painted on a building wall does
not have a commercial message, name, or other advertisement incorporated. Murals
are not considered signs and therefore are not subject to the standards in PMC Title
17. Exterior surface color alone is not considered a mural or artwork.
17.50.020 Purpose and Intent
1) To provide opportunities for murals in Pasco.
2) Ensure that public murals are not obscene.
3) Ensure that murals are artwork and distinct from signs and commercial
messages.
4) Encourage collaboration in the community and with the City Arts Commission
on murals.
5) Provide opportunity for review of proposed murals by the City Arts
Commission.
6) Ensure the mural program is constitutional and protects 1st Amendment rights.
17.50.030 Design and Cultural Intent
1) Communicate the rich history, culture, environment, and people of Pasco.
2) Contribute to a well-designed and vibrant City of Pasco.
3) Elevate professional artists by expanding opportunities for high-quality public
art.
4) Enliven and enrich the public realm in Pasco as experienced by people.
17.50.040 Arts Commission Review
All murals are required to be reviewed by the Arts Commission at a public meeting
to verify the mural is not considered a sign and therefore regulated under PMC Title
17 and not considered obscene by a reasonable person. All applicants are
encouraged to use the Arts Commission as a resource in the planning, design, and
Page 25 of 236
Ordinance – Amending PMC 17 Sign Code - 19
implementation of murals but other than verifying murals are not signs nor obscene
the content of murals are not regulated by the City of Pasco Municipal Code.
17.50.050 Required Submittal Requirements
1) Complete mural application.
2) Plan of the mural with scaled dimensions.
3) Photo and description of the proposed mural location.
4) Graphics depicting the proposed mural design including dimensions, colors,
text and other graphic elements.
17.50.060 Voluntary Submittal Requirements
1) Description of the mural theme and relevance to Pasco
2) Statement regarding how the proposed mural is consistent with the design
principles and review criteria
3) The name and qualifications of the professional artist selected for the mural
project. Mentorships between professional artists and youth or developing
artists are encouraged.
4) Artist portfolio demonstrating professional experience and qualifications for
public art murals
5) Pictures and photos of completed murals
6) Maintenance plan for the mural
7) Timeline and any phasing for implementation
17.50.070 Public Notice and Review Process
1) All mural applications shall be reviewed by the City of Pasco Arts Commission
at a public meeting.
2) Applicants are encouraged but not required to notify adjacent property owners
and residents at least 14 days prior to the review meeting with the Arts
Commission. Property owners and residents within 800’ of the property where
the mural is proposed should be notified. Applicants may provide confirmation
to the City that proper notice was given in accordance with these requirements.
3) The Arts Commission shall review the application at a public meeting and allow
for public comment.
4) The Arts Commission shall summarize the results of the meeting and a
recommendation regarding whether the mural violates any of the review criteria
to City staff.
5) The Planning Director shall consider input from the Arts Commission and the
public in denying any mural request for being obscene or constituting a sign
and therefore regulated under PMC Title 17.
Page 26 of 236
Ordinance – Amending PMC 17 Sign Code - 20
17.50.080 Review Criteria
1) The mural does not include elements that would constitute a sign and be subject
to the sign code.
2) The mural does not contain content considered to be obscene by an average
person.
17.50.090 Voluntary Guidelines
Mural projects are encouraged to be consistent with these voluntary guidelines. The
Arts Commission may provide input and recommendations on the design of the
proposed mural. The Arts Commission does not have the authority to approve or
deny a mural based on the voluntary guidelines.
1) The mural should contribute community and artistic value be designed and
created by or at the direction of, a professional public artist. Mentorship
programs are encouraged with professional public artists and emerging artists.
2) The mural is visually interesting and expressive of the community’s history,
culture, environment, and/or people.
3) The mural contributes positively to the experience in the public realm with an
emphasis on the experience of pedestrians.
Section 5. Severability. If any section, subsection, sentence, clause, phrase or word
of this ordinance should be held to the invalid or unconstitutional by a court of competent
jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or
constitutionality of any other section, subsection, sentence, clause phrase or word of this ordinance.
Section 6. Corrections. Upon approval by the city attorney, the city clerk or the code
reviser are authorized to make necessary corrections to this ordinance, including scrivener’s errors
or clerical mistakes; reference to other local, state, or feral laws, rules, or regulations; or numbering
or referencing of ordinances or their sections and subsections.
Section 7. Effective Date. This ordinance shall take full force and effect five (5) days
after approval, passage and publication as required by law.
Page 27 of 236
Ordinance – Amending PMC 17 Sign Code - 21
PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____,
202_.
_____________________________
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: _____________________________
Page 28 of 236
MEMO
To:Jacob Gonzalez,Director of Community Development,City of Pasco
From:Jeff Arango,AICP and Lesley Bain,Principals,Framework Cultural Placemaking
Date:July 19,2023
Re:Mural Code +Paint Pasco -Public Mural Program
Over view
The City of Pasco desires to update the municipal code to decouple murals from the sign code,
provide a simple process for review of murals to ensure they are not offensive or considered
signs,and to implement a public mural program.This memo summarizes the proposed
updates to the Pasco Municipal Code (PMC),guidance on the process for creating a mural,and
funding for the public mural program.
Pasco Municipal Code Updates
The following summarizes the proposed updates to the PMC regarding murals:
■Remove all references to murals in the sign code contained in PMC Title 17.
■Establish a new section in PMC 21.177 for murals
■Add a new definition for murals in PMC 21.177 as follows:“Wall mural or artwork”
means a mural or artwork painted on a building wall does not have a commercial
message,name,or other advertisement incorporated.Murals are not considered signs
and therefore are not subject to the standards in PMC Title 17.Exterior surface color
alone is not considered a mural or artwork.
■Establishes the Arts Commission as the review body to ensure that proposed murals are
not considered signs or offensive.Content of murals will not otherwise be regulated.
However,publicly funded murals will have oversight from the Arts Commission.
■Establishes voluntary guidelines for privately funded murals for those interested in
taking advantage of the expertise and resources of the arts commissioners.The
voluntary guidelines are to encourage community collaboration on murals.The
voluntary guidelines would be required for murals funded under the public program
proposed as “Paint Pasco”.
7/19/23 |1
Page 29 of 236
Paint Pasco -Public Mural Program
The City of Pasco desires to kickstart and manage a public mural program.To be successful,
the program must establish the program purpose,the connection to City and community
interests and goals,and the process for soliciting interests,reviewing design proposals,and
allocating funding.Murals are also addressed in a new section in the Pasco Municipal Code
under PMC 21.177 and this section is intended to guide the public mural program.
Mural Program Purpose +Intent
1.To celebrate the people,history,and culture of Pasco
2.To promote the arts and opportunities for professional artists
3.To support a thriving economy in Pasco
4.To support the activity and investment in Downtown and other neighborhoods in Pasco
5.To encourage collaboration in the community and with the City Arts Commission on
murals
6.To ensure the mural program is constitutional and protects 1st Amendment rights
Mural Process
Murals under this program can be implemented in several different ways and generally at the
discretion of the Arts Commission.Examples include the Arts Commission leading
development of a mural on a public building,the Arts Commission issuing a call for design
proposals/applications with funding through the Arts Commission,or a design competition led
by the Arts Commission.Privately funded murals are not subject to the requirements of the
public mural program but are subject to applicable sections of PMC 21.177.However,all
murals funded under this program must meet the following requirements:
1.Murals funded under this program must be approved by the Arts Commission and will
be reviewed based on the required and voluntary standards in PMC 21.177.The Arts
Commission has the full authority to deny funding for projects that do not meet the
criteria or otherwise are not in the interest of the City of Pasco and the community.
2.The mural must be maintained on the property for a minimum of 10 years unless a
replacement is approved by the Arts Commission.
3.A signed indemnification must be provided from property owners where the mural is
located to the City of Pasco.
The following section summarizes some of the key strategies for implementing murals under
this program:
7/19/23 |2
Page 30 of 236
Murals on City or Publicly Owned Property
The Arts Commission may choose to directly solicit a mural design from a professional artist for
public locations such as on City owned buildings.The Arts Commission may establish a theme
or design parameters for any mural solicitation process.The review and selection process shall
be conducted at a public meeting by the Arts Commission.
Murals on Private Property
Murals can be funded through this program for locations on private property.The Arts
Commission may issue a call for proposals where people can apply to have their mural funded
through the program.Solicitations for mural applications under the program may include a
specific theme,elements,or approach for the mural by the Arts Commission.All murals on
private property shall be selected through a solicitation process from the Arts Commission that
is publicly noticed and allows multiple applicants to apply.The Arts Commission may choose
to allow applications on a rolling basis.
Mural Costs
The cost of a mural includes the following,all of which have a range of costs depending on the
mural and conditions:
■paying for the artist concept and the approval process
■preparing the wall for the paint
■scaffolding
■paint and materials
■Installation
The cost will vary depending on the artist engaged and the amount of detail in the mural.
However,there is a range that generally falls between $25 and $50 per square foot of wall
painted.
We recommend an allotment of $24,000 from the City of Pasco,which would cover the cost of
two murals located in highly visible locations.Assuming $40 per square foot,this would allow
completion of two 300 sf murals (i.e.each 12 feet high and 25 feet long).
Attachments:
1.PMC Code Amendments -Draft
7/19/23 |3
Page 31 of 236
MASTER PLAN
IMPLEMENTATION
MASTER PLAN
IMPLEMENTATION
murals and moremurals and morePage 32 of 236
1Page 33 of 236
2Page 34 of 236
murals
parklets
identity & wayfinding
lightingPage 35 of 236
1.WHAT: Rewrite code language
2.HOW: Create program and process for
public and private mural proposals
3.WHERE: Identify locations for public murals
4.GET IT DONE!:Identify resources
MURALS
Page 36 of 236
• Remove murals from sign code,create new section
• Definition, with commercial messages excluded
• Arts Commission reviews private murals to ensure
they are not commercial or offensive.
• Arts Commission oversight for public murals.
MURALS: REWRITE CODE
Page 37 of 236
INTENT OF THE PASCO MURAL PROGRAM
MURALS:
CREATE PROGRAM & PROCESS
• To celebrate the people, history, and culture of Pasco
• To promote the arts and opportunities for professional artists
• To support a thriving economy in Pasco
• To support the activity and investment in Downtown and other
neighborhoods in Pasco
• To encourage collaboration in the community and with the City
Arts Commission on muralsPage 38 of 236
PROCESS FOR PUBLICLY FUNDED MURALS
MURALS:
CREATE PROGRAM & PROCESS
• Arts Commission review based on guidelines at a public meeting
• Owner agrees to maintain for 10 year minimum
• Owner indemnifies City Page 39 of 236
MURALS:
LOCATIONS
• Property owners enthusiastic about moving ahead with murals
• Additional opportunities Page 40 of 236
MURALS:
RESOURCES
ART COMMISSION GUIDANCE
MURAL RESOURCE GUIDE FOR PUBLIC
Page 41 of 236
MURALS:
RESOURCES
• paying for the artist concept and the approval process
• preparing the wall for the paint
• scaffolding
• paint and materials
• Installation
WHAT IS INCLUDED IN THE COST OF A MURAL?Page 42 of 236
MURALS:
RESOURCES
• It depends: level of detail, condition of wall...
• $25 - $50 per square foot
HOW MUCH DOES A MURAL COST?
WHAT ARE POSSIBLE FUNDING SOURCES?
• City
• Other agencies
• Grants
• Lodging tax
• Private sector partnersPage 43 of 236
MURALS:
RESOURCES
• Support strong public interest,
implement the Downtown Master Plan,
and create public benefit
• Two substantial murals in highly visible locations
• Assuming $40/sf, this funding would cover two 300 sf murals (i.e. 12’x25’ or 10’x30’)
• Request for $24,000
FUNDING REQUEST FROM COUNCIL
Page 44 of 236
PARKLETS AND STREET FURNISHINGS
STREET FURNISHINGS
• First group in street
• Additonal requests
• Funding through ARPA
PARKLETS
• Kit of parts designed
• First parklet September
• Funding through ARPA
Page 45 of 236
CURRENT WORK & NEXT STEPS
PAINT PASCO
• City staff pursuing grant requests
• Finalize parklet preferred design
OTHER PLAN IMPLEMENTATION WORK
• Project website
• Advancing street concepts for Clark and 4th
• Zoning and Development Code revisionsPage 46 of 236
Page 47 of 236
AGENDA REPORT
FOR: City Council July 19, 2022
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Jacob Gonzalez, Director
Community & Economic Development
SUBJECT: Ordinance - Amending Pasco Municipal Code Title 25 Related to Corner
Lot Fencing (CA2021-009)
I. REFERENCE(S):
Exhibit A - Fence Examples
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
The Pasco Municipal Code (PMC) regarding fence location and height stipulates
that fencing within front yard areas may not exceed 6’ in height. When the
fencing is proposed within the flanking street front yard area on corner lots the
following applies:
1. When two contiguous corner lots, or two corner lots separated only by an
alley right-of-way, form the entire frontage between parallel or nearly
parallel streets, walls and hedges shall be limited to six feet within the
front yard adjacent to the side street.
2. When then the front door of the adjacent home faces the side street all
fences greater than 3.5’ in height must be set back to the building line of
the dwelling.
Fences taller than 3.5' are allowed only if situation #1 requirements are met.
Some lots fall under situation #2, limiting how far 6' fences can extend towards
the frontage property line.
Page 48 of 236
The Pasco Planning Commission dedicated significant effort to this issue. They
conducted thorough evaluations during their workshops on August 15, 2021, and
September 16, 2021. Additionally, the Commission diligently held multiple public
hearings on October 21, November 18, and December 16, 2021, followed by
another hearing on January 20, 2022.
Council considered this amendment at the Workshop Meeting of March 14,
2022, and at its April 18, 2022 regular meeting. At the conclusion of the
discussion Council directed staff to review the proposed amendments to the
PMC and determine if an exception could be incorporated into the corner lot
fencing height for certain sized lots as long as the height met the safety
requirements for vehicles driving along the roadway and entering or exiting the
roadway
V. DISCUSSION:
Staff conducted a review of fence regulations in neighboring communities,
including Kennewick, Richland, and Walla Walla. The maximum front yard fence
heights in these areas are quite similar, ranging from 36 inches to 48 inches.
For example, in Richland, according to Richland Municipal Code (RMC)
23.38.070-A(2), fences with at least 50 percent open spaces, like non -slatted
chain link, wrought iron, picket, or rail fencing, can be up to four feet high
anywhere on the lot, including within the adjoining st reet right-of-way, up to one
foot behind the sidewalk or five feet behind the back of the curb. However, they
should not obstruct visibility at intersections or curves.
Corner fence regulations tend to be more complex:
In Kennewick for example, Chapter 13.12(5), specifies that within the defined
sight line setback area, there should be no obstruction between the heights of
36 inches and 90 inches above the roadway surface, except as allowed in
Section 13.12.020(6). KMC 13.12.020 then outlines the sight line setbacks
based on a combination of street speed limits and corresponding minimum
distances from the center of the intersection. This speed-limit-dependent formula
serves as the basis for determining allowable sight obstructions, including fence
locations, on corners. In other words, it sets the rules for where fences can be
placed without obstructing drivers' views at intersections.
The general fence code in Walla Walla Municipal Code (WWMC) 20.110.040 -A
directs the reader to a list of complex requirements for clearview triangles, which
includes various diagrams for uncontrolled and controlled intersections, and a
speed and distance table similar to that found in Kennewick's code. Walla Walla
also adds this warning: "For public safety reasons, no variances from these
provisions shall be applied for or permitted."
Page 49 of 236
In summary, Richland uses a fairly simple corner height and setback formula,
while Kennewick and Walla Walla employ a standard based on engineering
standards for corner view safety.
Current City of Pasco fence design standards require setbacks that are
determined by a neighboring property’s dwelling rather than a consistent
measurement. This can create situations where a fence on a corner lot must be
set back significantly further than what would be a safe and uniform distance
from the where lot corner on a Additionally, line. property a properties
neighboring lot has yet to develop do not have a basis for what the required
fence setback may be, resulting in unsafe or overly stringent require ments,
depending The ordinance proposed ultimately develops. that how on lot
provides:
• When two corner lots form the entire frontage between two parallel or
nearly parallel streets, dwellings shall not be allowed to be addressed or
accessed on the shared street. This will remove the possibility of creating
unusual lot configurations and accesses; and
• When the corner lots do not form the entire frontage between two parallel,
or nearly parallel streets, fences greater than 3.5 feet in height shall be
set back 15 feet from the property line adjacent to the side street
After consideration at six workshops and meetings, the Planning Commission
recommended that fence setbacks be revised as described above and contained
in the proposed ordinance.
As mentioned above, Council discussed the Planning Commission
at review to staff recommendation and length the directed proposed
amendments to the PMC and determine if an exception could be incorporated
into the corner lot fencing height for certain sized lots as long as the height met
the safety requirements for vehicles driving along the roadway and entering or
exiting the roadway.
City staff has provided the options below for consideration and further evaluation.
Potential results of each option are summarized below.
1) Maintain the current code.
- Fence complaints and Code cases will continue to increase as they have in the
past; seemingly arbitrary fence setbacks will be maintained as they have in the
past.
2) Approve the Ordinance recommended by Planning Commission.
Page 50 of 236
- Standardizing the setback requirements will simplify permitting somewhat;
fence standards will be easier to impose, and enforce; Fence complaints and
Code cases may drop somewhat with standardization.
3) Consider an amendment which reduces the frontage setback for 6 -foot fences
on smaller lots to 15 feet, but grants a more lenient 10-foot setback standard for
6-foot fences on larger lots; the sight triangle safety standard
shall be met, regardless of lot shape or size.
- Approving a split standard would create as many, if not more permitting,
enforcement, and public relations issues as the current code. Fence complaints
and Code cases would likely remain about the same, or increase.
4) Consider an amendment which reduces the frontage setback for 6 -foot fences
on smaller lots to 15 feet, but allows fences along the property line for 6 -foot
fences on larger lots; the sight triangle safety standard shall be met, regardless
of lot shape or size.
- Approving a split standard would create as many, if not more permitting,
enforcement, and public relations issues as the current code. Fence complaints
and Code cases would likely remain about the same, or increase.
5) Consider an amendment which reduces the frontage setback for 6 -foot fences
on all lots to 10 feet; the sight triangle safety standard shall be met, regardless
of lot shape or size.
- As with option #2 above, standardizing the setback requirements will simplify
permitting somewhat; fence standards will be easier to impose, and enforce;
Fence complaints and Code cases may drop somewhat with standardization,
however, the 10' setback may prove inadequate for safety.
In summary, city staff is seeking guidance from the City Council on the proposed
considerations prepared above.
Staff acknowledges that any proposal may not fully satisfy all Pasco residents,
but emphasizes the significance of developing practical regulations that can be
effectively implemented and enforced citywide. Balancing the diverse needs and
interests of the community is crucial, and the staff is committed to creating
regulations that strike a reasonable and fair balance while addressing the city's
unique challenges and requirements.
Page 51 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
West Court
Street &
Road 96Page 52 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
West Court
Street &
Road 96Page 53 of 236
Intersection
of
West Court
Street &
Road 96Page 54 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
10th Avenue
& Elm Avenue
(Kennewick)Page 55 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
27th Avenue
& Gum Street
(Kennewick)Page 56 of 236
Fence/hedge
height and
location
blocking view
of oncoming
traffic at the
intersection
of
West Court
Street &
Road 100Page 57 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
Fenway Drive
& Road 60Page 58 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
Fenway Drive
& Road 60Page 59 of 236
Fence height
and location
partially
blocking view
of oncoming
traffic at the
intersection
of
Sandifur
Parkway &
Hudson DrivePage 60 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
Sandifur
Parkway &
Rio Grande
LanePage 61 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
Sandifur
Parkway &
Rio Grande
LanePage 62 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
Wrigley Drive
& Road 60Page 63 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
Wrigley Drive
& Road 60Page 64 of 236
Fence height
and location
blocking view
of oncoming
traffic at the
intersection
of
West Argent
Road & Indigo
LanePage 65 of 236
Fence height
and location
partially
blocking view
of oncoming
traffic at the
intersection
of
West Argent
Road & Indigo
LanePage 66 of 236
AGENDA REPORT
FOR: City Council July 19, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Eric Ferguson, City Attorney
City Manager
SUBJECT: Continued Discussion of Strategic Planning for Drug Use, Crime and the
Effects on the Community
I. REFERENCE(S):
Second Engrossed Second Substitute Senate Bill 5536
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Undetermined
IV. HISTORY AND FACTS BRIEF:
On May 16, 2023, Governor Jay Inslee signed Senate Bill 5536 which ultimately
provided direction to local governments about enforcement of possession and
drug use under RCW 69.50.
The final bill passed by the Washington State Legislature and signed by th e
Governor gives some much-needed direction to local governments about how to
enforce the provisions of RCW 69.50. However, it is complex and legal staff
provided a general overview of the legislation to the Council on June 5, 2023.
At that meeting, Council and staff discussed the provisions of SB 5536, when it
will go into effect, and a potential regional approach to addressing factors related
to this new law with neighboring jurisdictions and court officials.
V. DISCUSSION:
Staff would like to continue discussion with the Council on potential next steps
for local drug use and possession enforcement under this new law as a part of
Page 67 of 236
a much larger discussion on homelessness, drug use, crime, and the effects on
the local community.
It is not anticipated that this topic will be able to be addressed in one part, rather,
Part I of the discussion focused on assessing the most pressing issues for the
community. Examples of those issues include illegal parking/living in vehicles;
camping in public parks; camping on private property (trespassing); sleeping in
city rights-of way; sitting/lying in certain areas of the City; panhandling; etc. The
City Attorney will also attempt to provide a brief overview of the current legal
constraints related to each of the issues.
Part II of the discussion will focus on what tools the City currently utilizes to
address these issues, and based on a discussion with the City’s prosecutors, the
current level of effectiveness of those tools. Also, the City’s prosecutors will
provide some suggestions for the Council to provide them with additional tools
to implement the City’s priorities.
Page 68 of 236
CERTIFICATION OF ENROLLMENT
SECOND ENGROSSED SECOND SUBSTITUTE SENATE BILL 5536
Chapter 1, Laws of 2023
68th Legislature
2023 1st Special Session
CONTROLLED SUBSTANCES, COUNTERFEIT SUBSTANCES, LEGEND DRUGS, AND DRUG
PARAPHERNALIA—POSSESSION AND TREATMENT
EFFECTIVE DATE: August 15, 2023—Except for sections 1 through 5, 7
through 11, and 41, which take effect July 1, 2023; and section 6,
which takes effect January 1, 2025.
Passed by the Senate May 16, 2023
Yeas 43 Nays 6
DENNY HECK
President of the Senate
Passed by the House May 16, 2023
Yeas 83 Nays 13
LAURIE JINKINS
Speaker of the House of
Representatives
CERTIFICATE
I, Sarah Bannister, Secretary of
the Senate of the State of
Washington, do hereby certify that
the attached is SECOND ENGROSSED
SECOND SUBSTITUTE SENATE BILL 5536
as passed by the Senate and the
House of Representatives on the
dates hereon set forth.
SARAH BANNISTER
Secretary
Approved May 16, 2023 4:20 PM FILED
May 17, 2023
JAY INSLEE
Governor of the State of Washington
Secretary of State
State of Washington
Page 69 of 236
AN ACT Relating to justice system and behavioral health responses 1
for persons experiencing circumstances that involve controlled 2
substances, counterfeit substances, legend drugs, and drug 3
paraphernalia; amending RCW 69.50.4011, 69.50.4013, 69.50.4014, 4
69.41.030, 69.50.509, 69.50.4121, 9.96.060, 36.70A.200, 71.24.589, 5
71.24.590, 10.31.110, and 84.36.043; amending 2021 c 311 s 29 6
(uncodified); adding a new section to chapter 43.43 RCW; adding new 7
sections to chapter 69.50 RCW; adding a new section to chapter 43.330 8
RCW; adding a new section to chapter 26.12 RCW; adding new sections 9
to chapter 71.24 RCW; adding new sections to chapter 43.216 RCW; 10
adding a new section to chapter 2.70 RCW; creating new sections; 11
repealing RCW 10.31.115; prescribing penalties; making 12
appropriations; providing effective dates; and declaring an 13
emergency.14
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:15
Part I – Prohibiting Knowing Possession of a Controlled Substance, 16
Counterfeit Substance, or Legend Drug17
Sec. 1. RCW 69.50.4011 and 2003 c 53 s 332 are each amended to 18
read as follows:19
SECOND ENGROSSED SECOND SUBSTITUTE SENATE BILL 5536
Passed Legislature - 2023 1st Special Session
State of Washington 68th Legislature 2023 Regular Session
By Senate Ways & Means (originally sponsored by Senators Robinson,
Lovick, Rolfes, Mullet, Dhingra, Billig, Hasegawa, Keiser, Kuderer,
Liias, Lovelett, Nobles, Randall, Stanford, Wellman, and C. Wilson)
READ FIRST TIME 02/24/23.
p. 1 2E2SSB 5536.SLPage 70 of 236
(1) Except as authorized by this chapter, it is unlawful for any 1
person to ((create, deliver, or possess a counterfeit substance)):2
(a) Create or deliver a counterfeit substance;3
(b) Knowingly possess a counterfeit substance; or4
(c) Knowingly use a counterfeit substance in a public place.5
(2) Any person who violates subsection (1)(a) of this section 6
with respect to:7
(a) A counterfeit substance classified in Schedule I or II which 8
is a narcotic drug, or flunitrazepam classified in Schedule IV, is 9
guilty of a class B felony and upon conviction may be imprisoned for 10
not more than ((ten)) 10 years, fined not more than ((twenty-five 11
thousand dollars)) $25,000, or both;12
(b) A counterfeit substance which is methamphetamine, is guilty 13
of a class B felony and upon conviction may be imprisoned for not 14
more than ((ten)) 10 years, fined not more than ((twenty-five 15
thousand dollars)) $25,000, or both;16
(c) Any other counterfeit substance classified in Schedule I, II, 17
or III, is guilty of a class C felony punishable according to chapter 18
9A.20 RCW;19
(d) A counterfeit substance classified in Schedule IV, except 20
flunitrazepam, is guilty of a class C felony punishable according to 21
chapter 9A.20 RCW;22
(e) A counterfeit substance classified in Schedule V, is guilty 23
of a class C felony punishable according to chapter 9A.20 RCW.24
(3)(a) A violation of subsection (1)(b) or (c) of this section is 25
a gross misdemeanor punishable by imprisonment of up to 180 days, or 26
by a fine of not more than $1,000, or by both such imprisonment and 27
fine, however, if the defendant has two or more prior convictions 28
under subsection (1)(b) or (c) of this section occurring after the 29
effective date of this section, a violation of subsection (1)(b) or 30
(c) of this section is punishable by imprisonment for up to 364 days, 31
or by a fine of not more than $1,000, or by both such imprisonment 32
and fine. The prosecutor is encouraged to divert such cases for 33
assessment, treatment, or other services.34
(b) No person may be charged under both subsection (1)(b) and (c) 35
of this section relating to the same course of conduct.36
(c) In lieu of jail booking and referral to the prosecutor, law 37
enforcement is encouraged to offer a referral to assessment and 38
services available under RCW 10.31.110 or other program or entity 39
responsible for receiving referrals in lieu of legal system 40
p. 2 2E2SSB 5536.SLPage 71 of 236
involvement, which may include, but are not limited to, arrest and 1
jail alternative programs established under RCW 36.28A.450, law 2
enforcement assisted diversion programs established under RCW 3
71.24.589, and the recovery navigator program established under RCW 4
71.24.115.5
(4) For the purposes of this section, "public place" has the same 6
meaning as defined in RCW 66.04.010, but the exclusions in RCW 7
66.04.011 do not apply.8
(5) For the purposes of this section, "use a counterfeit 9
substance" means to introduce the substance into the human body by 10
injection, inhalation, ingestion, or any other means.11
Sec. 2. RCW 69.50.4013 and 2022 c 16 s 86 are each amended to 12
read as follows:13
(1) ((It)) Except as otherwise authorized by this chapter, it is 14
unlawful for any person to:15
(a) Knowingly possess a controlled substance unless the substance 16
was obtained directly from, or pursuant to, a valid prescription or 17
order of a practitioner while acting in the course of his or her 18
professional practice((, or except as otherwise authorized by this 19
chapter)); or20
(b) Knowingly use a controlled substance in a public place, 21
unless the substance was obtained directly from, or pursuant to, a 22
valid prescription or order of a practitioner while acting in the 23
course of his or her professional practice.24
(2)(a) Except as provided in RCW 69.50.4014 or 69.50.445, ((any 25
person who violates this section is guilty of a class C felony 26
punishable under chapter 9A.20 RCW)) a violation of subsection (1)(a) 27
or (b) of this section is a gross misdemeanor punishable by 28
imprisonment of up to 180 days in jail, or by a fine of not more than 29
$1,000, or by both such imprisonment and fine, however, if the 30
defendant has two or more prior convictions under subsection (1)(a) 31
or (b) of this section occurring after the effective date of this 32
section, a violation of subsection (1)(a) or (b) of this section is 33
punishable by imprisonment for up to 364 days, or by a fine of not 34
more than $1,000, or by both such imprisonment and fine. The 35
prosecutor is encouraged to divert such cases for assessment, 36
treatment, or other services.37
(b) No person may be charged under both subsection (1)(a) and (b) 38
of this section relating to the same course of conduct.39
p. 3 2E2SSB 5536.SLPage 72 of 236
(c) In lieu of jail booking and referral to the prosecutor, law 1
enforcement is encouraged to offer a referral to assessment and 2
services available under RCW 10.31.110 or other program or entity 3
responsible for receiving referrals in lieu of legal system 4
involvement, which may include, but are not limited to, arrest and 5
jail alternative programs established under RCW 36.28A.450, law 6
enforcement assisted diversion programs established under RCW 7
71.24.589, and the recovery navigator program established under RCW 8
71.24.115.9
(3)(a) The possession, by a person ((twenty-one)) 21 years of age 10
or older, of useable cannabis, cannabis concentrates, or cannabis-11
infused products in amounts that do not exceed those set forth in RCW 12
69.50.360(3) is not a violation of this section, this chapter, or any 13
other provision of Washington state law.14
(b) The possession of cannabis, useable cannabis, cannabis 15
concentrates, and cannabis-infused products being physically 16
transported or delivered within the state, in amounts not exceeding 17
those that may be established under RCW 69.50.385(3), by a licensed 18
employee of a common carrier when performing the duties authorized in 19
accordance with RCW 69.50.382 and 69.50.385, is not a violation of 20
this section, this chapter, or any other provision of Washington 21
state law.22
(4)(a) The delivery by a person ((twenty-one)) 21 years of age or 23
older to one or more persons ((twenty-one)) 21 years of age or older, 24
during a single ((twenty-four)) 24 hour period, for noncommercial 25
purposes and not conditioned upon or done in connection with the 26
provision or receipt of financial consideration, of any of the 27
following cannabis products, is not a violation of this section, this 28
chapter, or any other provisions of Washington state law:29
(i) One-half ounce of useable cannabis;30
(ii) Eight ounces of cannabis-infused product in solid form;31
(iii) ((Thirty-six)) 36 ounces of cannabis-infused product in 32
liquid form; or33
(iv) Three and one-half grams of cannabis concentrates.34
(b) The act of delivering cannabis or a cannabis product as 35
authorized under this subsection (4) must meet one of the following 36
requirements:37
(i) The delivery must be done in a location outside of the view 38
of general public and in a nonpublic place; or39
p. 4 2E2SSB 5536.SLPage 73 of 236
(ii) The cannabis or cannabis product must be in the original 1
packaging as purchased from the cannabis retailer.2
(5) No person under ((twenty-one)) 21 years of age may 3
((possess,)) manufacture, sell, ((or)) distribute, or knowingly 4
possess cannabis, cannabis-infused products, or cannabis 5
concentrates, regardless of THC concentration. This does not include 6
qualifying patients with a valid authorization.7
(6) The possession by a qualifying patient or designated provider 8
of cannabis concentrates, useable cannabis, cannabis-infused 9
products, or plants in accordance with chapter 69.51A RCW is not a 10
violation of this section, this chapter, or any other provision of 11
Washington state law.12
(7) For the purposes of this section, "public place" has the same 13
meaning as defined in RCW 66.04.010, but the exclusions in RCW 14
66.04.011 do not apply.15
(8) For the purposes of this section, "use a controlled 16
substance" means to introduce the substance into the human body by 17
injection, inhalation, ingestion, or any other means.18
Sec. 3. RCW 69.50.4014 and 2022 c 16 s 88 are each amended to 19
read as follows:20
(1) Except as provided in RCW 69.50.401(2)(c) or as otherwise 21
authorized by this chapter, any person found guilty of knowing 22
possession of ((forty)) 40 grams or less of cannabis is guilty of a 23
misdemeanor. The prosecutor is encouraged to divert cases under this 24
section for assessment, treatment, or other services.25
(2) In lieu of jail booking and referral to the prosecutor, law 26
enforcement is encouraged to offer a referral to assessment and 27
services available under RCW 10.31.110 or other program or entity 28
responsible for receiving referrals in lieu of legal system 29
involvement, which may include, but are not limited to, arrest and 30
jail alternative programs established under RCW 36.28A.450, law 31
enforcement assisted diversion programs established under RCW 32
71.24.589, and the recovery navigator program established under RCW 33
71.24.115.34
Sec. 4. RCW 69.41.030 and 2020 c 80 s 41 are each amended to 35
read as follows:36
(1) It shall be unlawful for any person to sell((,)) or deliver 37
any legend drug, or knowingly possess any legend drug, or knowingly 38
p. 5 2E2SSB 5536.SLPage 74 of 236
use any legend drug in a public place, except upon the order or 1
prescription of a physician under chapter 18.71 RCW, an osteopathic 2
physician and surgeon under chapter 18.57 RCW, an optometrist 3
licensed under chapter 18.53 RCW who is certified by the optometry 4
board under RCW 18.53.010, a dentist under chapter 18.32 RCW, a 5
podiatric physician and surgeon under chapter 18.22 RCW, a 6
veterinarian under chapter 18.92 RCW, a commissioned medical or 7
dental officer in the United States armed forces or public health 8
service in the discharge of his or her official duties, a duly 9
licensed physician or dentist employed by the veterans administration 10
in the discharge of his or her official duties, a registered nurse or 11
advanced registered nurse practitioner under chapter 18.79 RCW when 12
authorized by the nursing care quality assurance commission, a 13
pharmacist licensed under chapter 18.64 RCW to the extent permitted 14
by drug therapy guidelines or protocols established under RCW 15
18.64.011 and authorized by the commission and approved by a 16
practitioner authorized to prescribe drugs, a physician assistant 17
under chapter 18.71A RCW when authorized by the Washington medical 18
commission, or any of the following professionals in any province of 19
Canada that shares a common border with the state of Washington or in 20
any state of the United States: A physician licensed to practice 21
medicine and surgery or a physician licensed to practice osteopathic 22
medicine and surgery, a dentist licensed to practice dentistry, a 23
podiatric physician and surgeon licensed to practice podiatric 24
medicine and surgery, a licensed advanced registered nurse 25
practitioner, a licensed physician assistant, or a veterinarian 26
licensed to practice veterinary medicine: PROVIDED, HOWEVER, That the 27
above provisions shall not apply to sale, delivery, or possession by 28
drug wholesalers or drug manufacturers, or their agents or employees, 29
or to any practitioner acting within the scope of his or her license, 30
or to a common or contract carrier or warehouse operator, or any 31
employee thereof, whose possession of any legend drug is in the usual 32
course of business or employment: PROVIDED FURTHER, That nothing in 33
this chapter or chapter 18.64 RCW shall prevent a family planning 34
clinic that is under contract with the health care authority from 35
selling, delivering, possessing, and dispensing commercially 36
prepackaged oral contraceptives prescribed by authorized, licensed 37
health care practitioners: PROVIDED FURTHER, That nothing in this 38
chapter prohibits possession or delivery of legend drugs by an 39
p. 6 2E2SSB 5536.SLPage 75 of 236
authorized collector or other person participating in the operation 1
of a drug take-back program authorized in chapter 69.48 RCW.2
(2)(a) A violation of this section involving the sale, delivery, 3
or possession with intent to sell or deliver is a class B felony 4
punishable according to chapter 9A.20 RCW.5
(b) A violation of this section involving knowing possession is a 6
misdemeanor. The prosecutor is encouraged to divert such cases for 7
assessment, treatment, or other services.8
(c) A violation of this section involving knowing use in a public 9
place is a misdemeanor. The prosecutor is encouraged to divert such 10
cases for assessment, treatment, or other services.11
(d) No person may be charged with both knowing possession and 12
knowing use in a public place under this section relating to the same 13
course of conduct.14
(e) In lieu of jail booking and referral to the prosecutor for a 15
violation of this section involving knowing possession, or knowing 16
use in a public place, law enforcement is encouraged to offer a 17
referral to assessment and services available under RCW 10.31.110 or 18
other program or entity responsible for receiving referrals in lieu 19
of legal system involvement, which may include, but are not limited 20
to, arrest and jail alternative programs established under RCW 21
36.28A.450, law enforcement assisted diversion programs established 22
under RCW 71.24.589, and the recovery navigator program established 23
under RCW 71.24.115.24
(3) For the purposes of this section, "public place" has the same 25
meaning as defined in RCW 66.04.010, but the exclusions in RCW 26
66.04.011 do not apply.27
(4) For the purposes of this section, "use any legend drug" means 28
to introduce the drug into the human body by injection, inhalation, 29
ingestion, or any other means.30
Sec. 5. RCW 69.50.509 and 1987 c 202 s 228 are each amended to 31
read as follows:32
If, upon the sworn complaint of any person, it shall be made to 33
appear to any judge of the superior court, district court, or 34
municipal court that there is probable cause to believe that any 35
controlled substance is being used, manufactured, sold, bartered, 36
exchanged, administered, dispensed, delivered, distributed, produced, 37
knowingly possessed, given away, furnished or otherwise disposed of 38
or kept in violation of the provisions of this chapter, such judge 39
p. 7 2E2SSB 5536.SLPage 76 of 236
shall, with or without the approval of the prosecuting attorney, 1
issue a warrant directed to any law enforcement officer of the state, 2
commanding him or her to search the premises designated and described 3
in such complaint and warrant, and to seize all controlled substances 4
there found, together with the vessels in which they are contained, 5
and all implements, furniture and fixtures used or kept for the 6
illegal manufacture, sale, barter, exchange, administering, 7
dispensing, delivering, distributing, producing, possessing, giving 8
away, furnishing or otherwise disposing of such controlled 9
substances, and to safely keep the same, and to make a return of said 10
warrant within three days, showing all acts and things done 11
thereunder, with a particular statement of all articles seized and 12
the name of the person or persons in whose possession the same were 13
found, if any, and if no person be found in the possession of said 14
articles, the returns shall so state. The provisions of RCW 10.31.030 15
as now or hereafter amended shall apply to actions taken pursuant to 16
this chapter.17
NEW SECTION. Sec. 6. A new section is added to chapter 43.43 18
RCW to read as follows:19
Subject to the availability of funds appropriated for this 20
specific purpose, the Washington state patrol bureau of forensic 21
laboratory services shall aim to complete the necessary analysis for 22
any evidence submitted for a suspected violation of RCW 69.50.4011(1) 23
(b) or (c), 69.50.4013, 69.50.4014, or 69.41.030(2) (b) or (c) within 24
45 days of receipt of the request for analysis.25
The Washington state patrol bureau of forensic laboratory 26
services' failure to comply with this section shall not constitute 27
grounds for dismissal of a criminal charge.28
Part II – Relating to Drug Paraphernalia29
Sec. 7. RCW 69.50.4121 and 2022 c 16 s 92 are each amended to 30
read as follows:31
(1) Every person who sells ((or gives,)) or permits to be sold 32
((or given)) to any person any drug paraphernalia in any form commits 33
a class I civil infraction under chapter 7.80 RCW. For purposes of 34
this subsection, "drug paraphernalia" means all equipment, products, 35
and materials of any kind which are used, intended for use, or 36
designed for use in planting, propagating, cultivating, growing, 37
p. 8 2E2SSB 5536.SLPage 77 of 236
harvesting, manufacturing, compounding, converting, producing, 1
processing, preparing, ((testing, analyzing,)) packaging, 2
repackaging, storing, containing, concealing, injecting, ingesting, 3
inhaling, or otherwise introducing into the human body a controlled 4
substance other than cannabis. Drug paraphernalia includes, but is 5
not limited to objects used, intended for use, or designed for use in 6
ingesting, inhaling, or otherwise introducing cocaine into the human 7
body, such as:8
(a) Metal, wooden, acrylic, glass, stone, plastic, or ceramic 9
pipes with or without screens, permanent screens, hashish heads, or 10
punctured metal bowls;11
(b) Water pipes;12
(c) Carburetion tubes and devices;13
(d) Smoking and carburetion masks;14
(e) Miniature cocaine spoons and cocaine vials;15
(f) Chamber pipes;16
(g) Carburetor pipes;17
(h) Electric pipes;18
(i) Air-driven pipes; and19
(j) Ice pipes or chillers.20
(2) It shall be no defense to a prosecution for a violation of 21
this section that the person acted, or was believed by the defendant 22
to act, as agent or representative of another.23
(3) Nothing in subsection (1) of this section prohibits ((legal)) 24
distribution ((of injection)) or use of public health supplies 25
including, but not limited to, syringe equipment, smoking equipment, 26
or drug testing equipment, through public health ((and)) programs, 27
community-based HIV prevention programs, outreach, shelter, and 28
housing programs, and pharmacies. Public health and syringe service 29
program staff taking samples of substances and using drug testing 30
equipment for the purpose of analyzing the composition of the 31
substances or detecting the presence of certain substances are acting 32
legally and are exempt from arrest and prosecution under RCW 33
69.50.4011(1) (b) or (c), 69.50.4013, 69.50.4014, or 69.41.030(2) (b) 34
or (c).35
NEW SECTION. Sec. 8. A new section is added to chapter 69.50 36
RCW to read as follows:37
(1) The state of Washington hereby fully occupies and preempts 38
the entire field of drug paraphernalia regulation within the 39
p. 9 2E2SSB 5536.SLPage 78 of 236
boundaries of the state including regulation of the use, selling, 1
giving, delivery, and possession of drug paraphernalia, except as 2
provided in subsection (2) of this section. Cities, towns, and 3
counties or other municipalities may enact only those laws and 4
ordinances relating to drug paraphernalia that are specifically 5
authorized by state law and are consistent with this chapter. Such 6
local ordinances must have the same penalty as provided for by state 7
law. Local laws and ordinances that are inconsistent with, more 8
restrictive than, or exceed the requirements of state law may not be 9
enacted and are preempted and repealed, regardless of the nature of 10
the code, charter, or home rule status of such city, town, county, or 11
municipality.12
(2) Nothing in this chapter shall be construed to prohibit cities 13
or counties from enacting laws or ordinances relating to the 14
establishment or regulation of harm reduction services concerning 15
drug paraphernalia.16
Part III - Providing Opportunities for Pretrial Diversion Pursuant to 17
RCW 71.24.115, 36.28A.450, and 71.24.589 and Vacating Convictions18
NEW SECTION. Sec. 9. A new section is added to chapter 69.50 19
RCW to read as follows:20
(1) Nothing in this section prevents the defendant, with the 21
consent of the prosecuting attorney as required by RCW 2.30.030, from 22
seeking to resolve charges under RCW 69.50.4011(1) (b) or (c), 23
69.50.4013, 69.50.4014, or 69.41.030(2) (b) or (c) through available 24
therapeutic courts or other alternatives to prosecution including, 25
but not limited to, a stipulated order of continuance or deferred 26
prosecution. Nothing in this section prevents the defendant or the 27
prosecuting attorney from seeking or agreeing to, or the court from 28
ordering, any other resolution of charges or terms of supervision 29
that suit the circumstances of the defendant's situation and advance 30
stabilization, recovery, crime reduction, and justice.31
(2) In any jurisdiction with a recovery navigator program 32
established under RCW 71.24.115, an arrest and jail alternative 33
program established under RCW 36.28A.450, or a law enforcement 34
assisted diversion program established under RCW 71.24.589, any 35
defendant charged with a violation of RCW 69.50.4011(1) (b) or (c), 36
69.50.4013, 69.50.4014, or 69.41.030(2) (b) or (c) may make a motion 37
to participate in pretrial diversion and agree to waive his or her 38
p. 10 2E2SSB 5536.SLPage 79 of 236
right to a speedy trial if the motion is granted, subject to the 1
following:2
(a) In any case where the defendant is only charged with a 3
violation of RCW 69.50.4011(1) (b) or (c), 69.50.4013, 69.50.4014, or 4
69.41.030(2) (b) or (c), and the defendant has not been convicted of 5
any offenses committed after the effective date of this section, the 6
court shall grant the motion, continue the hearing, and refer the 7
defendant to a recovery navigator program established under RCW 8
71.24.115, an arrest and jail alternative program established under 9
RCW 36.28A.450, or a law enforcement assisted diversion program 10
established under RCW 71.24.589.11
(b) In any case where the defendant does not meet the criteria 12
described in (a) of this subsection, the court may grant the motion, 13
continue the hearing, and refer the defendant to a recovery navigator 14
program established under RCW 71.24.115, an arrest and jail 15
alternative program established under RCW 36.28A.450, or a law 16
enforcement assisted diversion program established under RCW 17
71.24.589.18
(c) In all cases, the court may not grant the motion unless the 19
prosecuting attorney consents to the defendant's participation in 20
pretrial diversion. The prosecuting attorney is strongly encouraged 21
to agree to diversion in any case where the defendant is only charged 22
with a violation of RCW 69.50.4011(1) (b) or (c), 69.50.4013, 23
69.50.4014, or 69.41.030(2) (b) or (c). The prosecuting attorney may 24
divert additional charges related to substance use disorder for 25
nonfelony offenses that are not crimes against persons.26
(3) Prior to granting the defendant's motion to participate in 27
pretrial diversion under this section, the court shall provide the 28
defendant and the defendant's counsel with the following information:29
(a) A full description of the procedures for pretrial diversion;30
(b) A general explanation of the roles and authority of the 31
probation department, the prosecuting attorney, the recovery 32
navigator program under RCW 71.24.115, arrest and jail alternative 33
program under RCW 36.28A.450, or law enforcement assisted diversion 34
program under RCW 71.24.589, and the court in the process;35
(c) A clear statement that the court may grant pretrial diversion 36
with respect to any offense under RCW 69.50.4011(1) (b) or (c), 37
69.50.4013, 69.50.4014, or 69.41.030(2) (b) or (c) that is charged, 38
provided that the defendant pleads not guilty to the charge or 39
charges and waives his or her right to a speedy trial, and that upon 40
p. 11 2E2SSB 5536.SLPage 80 of 236
the defendant's successful completion of pretrial diversion, as 1
specified in subsection (11) of this section, and motion of the 2
defendant, prosecuting attorney, court, or probation department, the 3
court must dismiss the charge or charges against the defendant;4
(d) A clear statement that if the defendant has not made 5
substantial progress with treatment or services provided that are 6
appropriate to the defendant's circumstances or, if applicable, 7
community service, the prosecuting attorney may make a motion to 8
terminate pretrial diversion and schedule further proceedings as 9
otherwise provided in this section;10
(e) An explanation of criminal record retention and disposition 11
resulting from participation in pretrial diversion and the 12
defendant's rights relative to answering questions about his or her 13
arrest and pretrial diversion following successful completion; and14
(f) A clear statement that under federal law it is unlawful for 15
any person who is an unlawful user of or addicted to any controlled 16
substance to ship or transport in interstate or foreign commerce, or 17
possess in or affecting commerce, any firearm or ammunition, or to 18
receive any firearm or ammunition which has been shipped or 19
transported in interstate or foreign commerce.20
(4) If the court grants the defendant's motion to participate in 21
pretrial diversion under this section, the recovery navigator program 22
established under RCW 71.24.115, the arrest and jail alternative 23
program established under RCW 36.28A.450, or the law enforcement 24
assisted diversion program established under RCW 71.24.589, shall 25
provide the court written confirmation of completion of the 26
assessment and a statement indicating the defendant's enrollment or 27
referral to any specific service or program. The confirmation and 28
statement of the recovery navigator program established under RCW 29
71.24.115, the arrest and jail alternative program established under 30
RCW 36.28A.450, or the law enforcement assisted diversion program 31
established under RCW 71.24.589 shall be filed under seal with the 32
court, and a copy shall be given to the prosecuting attorney, 33
defendant, and defendant's counsel. The confirmation and statement 34
are confidential and exempt from disclosure under chapter 42.56 RCW. 35
The court shall endeavor to avoid public discussion of the 36
circumstances, history, or diagnoses that could stigmatize the 37
defendant.38
(5) Subject to the availability of funds appropriated for this 39
specific purpose, the assessment and recommended treatment or 40
p. 12 2E2SSB 5536.SLPage 81 of 236
services must be provided at no cost for defendants who have been 1
found to be indigent by the court.2
(6) If the assessment conducted by the recovery navigator program 3
established under RCW 71.24.115, the arrest and jail alternative 4
program established under RCW 36.28A.450, or the law enforcement 5
assisted diversion program established under RCW 71.24.589 includes a 6
referral to any treatment or services, the recovery navigator program 7
established under RCW 71.24.115, the arrest and jail alternative 8
program established under RCW 36.28A.450, the law enforcement 9
assisted diversion program established under RCW 71.24.589, or 10
service provider shall provide the court with regular written status 11
updates on the defendant's progress on a schedule acceptable to the 12
court. The updates must be provided at least monthly and be filed 13
under seal with the court, with copies given to the prosecuting 14
attorney, defendant, and defendant's counsel. The updates and their 15
copies are confidential and exempt from disclosure under chapter 16
42.56 RCW. The court shall endeavor to avoid public discussion of the 17
circumstances, history, or diagnoses that could stigmatize the 18
defendant.19
(7) If the assessment conducted by the recovery navigator program 20
established under RCW 71.24.115, the arrest and jail alternative 21
program established under RCW 36.28A.450, or the law enforcement 22
assisted diversion program established under RCW 71.24.589 does not 23
recommend any treatment or services, the defendant must instead 24
complete an amount of community service as determined by the court, 25
but not to exceed 120 hours of community service, in order to 26
complete pretrial diversion.27
(8) Admissions made by the individual in the course of receiving 28
services from the recovery navigator program established under RCW 29
71.24.115, the arrest and jail alternative program established under 30
RCW 36.28A.450, or the law enforcement assisted diversion program 31
established under RCW 71.24.589 may not be used against the 32
individual in the prosecution's case in chief.33
(9) A defendant's participation in pretrial diversion under this 34
section does not constitute a conviction, a stipulation to facts, or 35
an admission of guilt for any purpose.36
(10) If it appears to the prosecuting attorney that the defendant 37
is not substantially complying with the recommended treatment or 38
services as reflected by a written status update, the prosecuting 39
attorney may make a motion for termination from pretrial diversion.40
p. 13 2E2SSB 5536.SLPage 82 of 236
(a) After notice to the defendant, the court must hold a hearing 1
to determine whether pretrial diversion shall be terminated.2
(b) Before the hearing, the defendant and the defendant's counsel 3
shall be advised of the nature of the alleged noncompliance and 4
provided discovery of evidence supporting the allegation, including 5
names and contact information of witnesses.6
(c) At the hearing, the court must consider the following 7
factors:8
(i) The nature of the alleged noncompliance; and9
(ii) Any other mitigating circumstances, including, but not 10
limited to, the defendant's efforts and due diligence, the 11
availability of services in the geographic area, and the treatment 12
and services offered to the defendant.13
(d) If the court finds the defendant is not substantially 14
complying with the recommended treatment or services and thereafter 15
terminates pretrial diversion, it shall state the grounds for its 16
decision succinctly in the record and provide the prosecuting 17
attorney, the defendant, and the defendant's counsel with a written 18
order.19
(11) If the defendant successfully completes pretrial diversion, 20
including in one of the following ways, the charge or charges under 21
RCW 69.50.4011(1) (b) or (c), 69.50.4013, 69.50.4014, or 69.41.030(2) 22
(b) or (c) must be dismissed:23
(a) If the assessment prepared by the recovery navigator program, 24
arrest and jail alternative program, or law enforcement assisted 25
diversion program included a recommendation for treatment or 26
services, the defendant successfully completes pretrial diversion 27
either by having 12 months of substantial compliance with the 28
assessment and recommended treatment or services and progress toward 29
recovery goals as reflected by the written status updates or by 30
successfully completing the recommended treatment or services, 31
whichever occurs first; or32
(b) If the assessment prepared by the recovery navigator program, 33
arrest and jail alternative program, or law enforcement assisted 34
diversion program did not include a recommendation for treatment or 35
services, the defendant successfully completes pretrial diversion by 36
completing the community service described in subsection (7) of this 37
section and submitting proof of completion to the court.38
(12) Beginning January 1, 2025, the recovery navigator programs 39
established under RCW 71.24.115, arrest and jail alternative programs 40
p. 14 2E2SSB 5536.SLPage 83 of 236
established under RCW 36.28A.450, and law enforcement assisted 1
diversion programs established under RCW 71.24.589 shall input data 2
and information in the data integration platform under section 22 of 3
this act for each case where the defendant participates in pretrial 4
diversion under this section, including but not limited to the 5
following:6
(a) Whether the pretrial diversion was terminated or was 7
successfully completed and resulted in a dismissal;8
(b) The race, ethnicity, gender, gender expression or identity, 9
disability status, and age of the defendant; and10
(c) Any other appropriate data and information as determined by 11
the health care authority.12
NEW SECTION. Sec. 10. A new section is added to chapter 69.50 13
RCW to read as follows:14
When sentencing an individual for a violation of RCW 15
69.50.4011(1) (b) or (c), 69.50.4013, 69.50.4014, or 69.41.030(2) (b) 16
or (c), the court is encouraged to utilize any other resolution of 17
the charges or terms of supervision that suit the circumstances of 18
the defendant's situation and advance stabilization, recovery, crime 19
reduction, and justice.20
Sec. 11. RCW 9.96.060 and 2022 c 16 s 7 are each amended to read 21
as follows:22
(1) When vacating a conviction under this section, the court 23
effectuates the vacation by: (a)(i) Permitting the applicant to 24
withdraw the applicant's plea of guilty and to enter a plea of not 25
guilty; or (ii) if the applicant has been convicted after a plea of 26
not guilty, the court setting aside the verdict of guilty; and (b) 27
the court dismissing the information, indictment, complaint, or 28
citation against the applicant and vacating the judgment and 29
sentence.30
(2) Every person convicted of a misdemeanor or gross misdemeanor 31
offense may apply to the sentencing court for a vacation of the 32
applicant's record of conviction for the offense. If the court finds 33
the applicant meets the requirements of this subsection, the court 34
may in its discretion vacate the record of conviction. Except as 35
provided in subsections (3), (4), ((and)) (5), and (6) of this 36
section, an applicant may not have the record of conviction for a 37
p. 15 2E2SSB 5536.SLPage 84 of 236
misdemeanor or gross misdemeanor offense vacated if any one of the 1
following is present:2
(a) The applicant has not completed all of the terms of the 3
sentence for the offense;4
(b) There are any criminal charges against the applicant pending 5
in any court of this state or another state, or in any federal or 6
tribal court, at the time of application;7
(c) The offense was a violent offense as defined in RCW 9.94A.030 8
or an attempt to commit a violent offense;9
(d) The offense was a violation of RCW 46.61.502 (driving while 10
under the influence), 46.61.504 (actual physical control while under 11
the influence), 9.91.020 (operating a railroad, etc. while 12
intoxicated), or the offense is considered a "prior offense" under 13
RCW 46.61.5055 and the applicant has had a subsequent alcohol or drug 14
violation within ten years of the date of arrest for the prior 15
offense or less than ten years has elapsed since the date of the 16
arrest for the prior offense;17
(e) The offense was any misdemeanor or gross misdemeanor 18
violation, including attempt, of chapter 9.68 RCW (obscenity and 19
pornography), chapter 9.68A RCW (sexual exploitation of children), or 20
chapter 9A.44 RCW (sex offenses), except for failure to register as a 21
sex offender under RCW 9A.44.132;22
(f) The applicant was convicted of a misdemeanor or gross 23
misdemeanor offense as defined in RCW 10.99.020, or the court 24
determines after a review of the court file that the offense was 25
committed by one family or household member against another or by one 26
intimate partner against another, or the court, after considering the 27
damage to person or property that resulted in the conviction, any 28
prior convictions for crimes defined in RCW 10.99.020, or for 29
comparable offenses in another state or in federal court, and the 30
totality of the records under review by the court regarding the 31
conviction being considered for vacation, determines that the offense 32
involved domestic violence, and any one of the following factors 33
exist:34
(i) The applicant has not provided written notification of the 35
vacation petition to the prosecuting attorney's office that 36
prosecuted the offense for which vacation is sought, or has not 37
provided that notification to the court;38
(ii) The applicant has two or more domestic violence convictions 39
stemming from different incidents. For purposes of this subsection, 40
p. 16 2E2SSB 5536.SLPage 85 of 236
however, if the current application is for more than one conviction 1
that arose out of a single incident, none of those convictions counts 2
as a previous conviction;3
(iii) The applicant has signed an affidavit under penalty of 4
perjury affirming that the applicant has not previously had a 5
conviction for a domestic violence offense, and a criminal history 6
check reveals that the applicant has had such a conviction; or7
(iv) Less than five years have elapsed since the person completed 8
the terms of the original conditions of the sentence, including any 9
financial obligations and successful completion of any treatment 10
ordered as a condition of sentencing;11
(g) For any offense other than those described in (f) of this 12
subsection, less than three years have passed since the person 13
completed the terms of the sentence, including any financial 14
obligations;15
(h) The offender has been convicted of a new crime in this state, 16
another state, or federal or tribal court in the three years prior to 17
the vacation application; or18
(i) The applicant is currently restrained by a domestic violence 19
protection order, a no-contact order, an antiharassment order, or a 20
civil restraining order which restrains one party from contacting the 21
other party or was previously restrained by such an order and was 22
found to have committed one or more violations of the order in the 23
five years prior to the vacation application.24
(3) If the applicant is a victim of sex trafficking, 25
prostitution, or commercial sexual abuse of a minor; sexual assault; 26
or domestic violence as defined in RCW 9.94A.030, or the prosecutor 27
applies on behalf of the state, the sentencing court may vacate the 28
record of conviction if the application satisfies the requirements of 29
RCW 9.96.080. When preparing or filing the petition, the prosecutor 30
is not deemed to be providing legal advice or legal assistance on 31
behalf of the victim, but is fulfilling an administrative function on 32
behalf of the state in order to further their responsibility to seek 33
to reform and improve the administration of criminal justice. A 34
record of conviction vacated using the process in RCW 9.96.080 is 35
subject to subsections (((6) and)) (7) and (8) of this section.36
(4) Every person convicted prior to January 1, 1975, of violating 37
any statute or rule regarding the regulation of fishing activities, 38
including, but not limited to, RCW 75.08.260, 75.12.060, 75.12.070, 39
75.12.160, 77.16.020, 77.16.030, 77.16.040, 77.16.060, and 77.16.240 40
p. 17 2E2SSB 5536.SLPage 86 of 236
who claimed to be exercising a treaty Indian fishing right, may apply 1
to the sentencing court for vacation of the applicant's record of the 2
misdemeanor, gross misdemeanor, or felony conviction for the offense. 3
If the person is deceased, a member of the person's family or an 4
official representative of the tribe of which the person was a member 5
may apply to the court on behalf of the deceased person. 6
Notwithstanding the requirements of RCW 9.94A.640, the court shall 7
vacate the record of conviction if:8
(a) The applicant is a member of a tribe that may exercise treaty 9
Indian fishing rights at the location where the offense occurred; and10
(b) The state has been enjoined from taking enforcement action of 11
the statute or rule to the extent that it interferes with a treaty 12
Indian fishing right as determined under United States v. Washington, 13
384 F. Supp. 312 (W.D. Wash. 1974), or Sohappy v. Smith, 302 F. Supp. 14
899 (D. Oregon 1969), and any posttrial orders of those courts, or 15
any other state supreme court or federal court decision.16
(5) Every person convicted of a misdemeanor cannabis offense, who 17
was ((twenty-one)) 21 years of age or older at the time of the 18
offense, may apply to the sentencing court for a vacation of the 19
applicant's record of conviction for the offense. A misdemeanor 20
cannabis offense includes, but is not limited to: Any offense under 21
RCW 69.50.4014, from July 1, 2004, onward, and its predecessor 22
statutes, including RCW 69.50.401(e), from March 21, 1979, to July 1, 23
2004, and RCW 69.50.401(d), from May 21, 1971, to March 21, 1979, and 24
any offense under an equivalent municipal ordinance. If an applicant 25
qualifies under this subsection, the court shall vacate the record of 26
conviction.27
(6) If a person convicted of violating RCW 69.50.4011(1) (b) or 28
(c), 69.50.4013, 69.50.4014, or 69.41.030(2) (b) or (c) completes a 29
substance use disorder program and files proof of completion with the 30
court, or obtains an assessment from a recovery navigator program 31
established under RCW 71.24.115, an arrest and jail alternative 32
program established under RCW 36.28A.450, or a law enforcement 33
assisted diversion program established under RCW 71.24.589, and has 34
six months of substantial compliance with recommended treatment or 35
services and progress toward recovery goals as reflected by a written 36
status update, upon verification the court must vacate the conviction 37
or convictions.38
(7) A person who is a family member of a homicide victim may 39
apply to the sentencing court on the behalf of the victim for 40
p. 18 2E2SSB 5536.SLPage 87 of 236
vacation of the victim's record of conviction for prostitution under 1
RCW 9A.88.030. If an applicant qualifies under this subsection, the 2
court shall vacate the victim's record of conviction.3
(((7))) (8)(a) Except as provided in (c) of this subsection, once 4
the court vacates a record of conviction under this section, the 5
person shall be released from all penalties and disabilities 6
resulting from the offense and the fact that the person has been 7
convicted of the offense shall not be included in the person's 8
criminal history for purposes of determining a sentence in any 9
subsequent conviction. For all purposes, including responding to 10
questions on employment or housing applications, a person whose 11
conviction has been vacated under this section may state that he or 12
she has never been convicted of that crime. However, nothing in this 13
section affects the requirements for restoring a right to possess a 14
firearm under RCW 9.41.040. Except as provided in (b) of this 15
subsection, nothing in this section affects or prevents the use of an 16
offender's prior conviction in a later criminal prosecution.17
(b) When a court vacates a record of domestic violence as defined 18
in RCW 10.99.020 under this section, the state may not use the 19
vacated conviction in a later criminal prosecution unless the 20
conviction was for: (i) Violating the provisions of a restraining 21
order, no-contact order, or protection order restraining or enjoining 22
the person or restraining the person from going on to the grounds of 23
or entering a residence, workplace, school, or day care, or 24
prohibiting the person from knowingly coming within, or knowingly 25
remaining within, a specified distance of a location, a protected 26
party's person, or a protected party's vehicle (RCW 10.99.040, 27
10.99.050, 26.09.300, 26.26B.050, 26.44.063, 26.44.150, or 26.52.070, 28
or any of the former RCW 26.50.060, 26.50.070, 26.50.130, and 29
74.34.145); (ii) stalking (RCW 9A.46.110); or (iii) a domestic 30
violence protection order or vulnerable adult protection order 31
entered under chapter 7.105 RCW. A vacated conviction under this 32
section is not considered a conviction of such an offense for the 33
purposes of 27 C.F.R. 478.11.34
(c) A conviction vacated on or after July 28, 2019, qualifies as 35
a prior conviction for the purpose of charging a present recidivist 36
offense as defined in RCW 9.94A.030 occurring on or after July 28, 37
2019.38
(((8))) (9) The clerk of the court in which the vacation order is 39
entered shall immediately transmit the order vacating the conviction 40
p. 19 2E2SSB 5536.SLPage 88 of 236
to the Washington state patrol identification section and to the 1
local police agency, if any, which holds criminal history information 2
for the person who is the subject of the conviction. The Washington 3
state patrol and any such local police agency shall immediately 4
update their records to reflect the vacation of the conviction, and 5
shall transmit the order vacating the conviction to the federal 6
bureau of investigation. A conviction that has been vacated under 7
this section may not be disseminated or disclosed by the state patrol 8
or local law enforcement agency to any person, except other criminal 9
justice enforcement agencies.10
(((9))) (10) For the purposes of this section, "cannabis" has the 11
meaning provided in RCW 69.50.101.12
Part IV – Opioid Treatment Rural Access and Expansion13
Sec. 12. RCW 36.70A.200 and 2021 c 265 s 2 are each amended to 14
read as follows:15
(1)(a) The comprehensive plan of each county and city that is 16
planning under RCW 36.70A.040 shall include a process for identifying 17
and siting essential public facilities. Essential public facilities 18
include those facilities that are typically difficult to site, such 19
as airports, state education facilities and state or regional 20
transportation facilities as defined in RCW 47.06.140, regional 21
transit authority facilities as defined in RCW 81.112.020, state and 22
local correctional facilities, solid waste handling facilities, 23
opioid treatment programs including both mobile and fixed-site 24
medication units, recovery residences, harm reduction programs 25
excluding safe injection sites, and inpatient facilities including 26
substance ((abuse)) use disorder treatment facilities, mental health 27
facilities, group homes, community facilities as defined in RCW 28
72.05.020, and secure community transition facilities as defined in 29
RCW 71.09.020.30
(b) Unless a facility is expressly listed in (a) of this 31
subsection, essential public facilities do not include facilities 32
that are operated by a private entity in which persons are detained 33
in custody under process of law pending the outcome of legal 34
proceedings but are not used for punishment, correction, counseling, 35
or rehabilitation following the conviction of a criminal offense. 36
Facilities included under this subsection (1)(b) shall not include 37
p. 20 2E2SSB 5536.SLPage 89 of 236
facilities detaining persons under RCW 71.09.020 (((6) or (15))) (7) 1
or (16) or chapter 10.77 or 71.05 RCW.2
(c) The department of children, youth, and families may not 3
attempt to site new community facilities as defined in RCW 72.05.020 4
east of the crest of the Cascade mountain range unless there is an 5
equal or greater number of sited community facilities as defined in 6
RCW 72.05.020 on the western side of the crest of the Cascade 7
mountain range.8
(d) For the purpose of this section, "harm reduction programs" 9
means programs that emphasize working directly with people who use 10
drugs to prevent overdose and infectious disease transmission, 11
improve the physical, mental, and social well-being of those served, 12
and offer low threshold options for accessing substance use disorder 13
treatment and other services.14
(2) Each county and city planning under RCW 36.70A.040 shall, not 15
later than September 1, 2002, establish a process, or amend its 16
existing process, for identifying and siting essential public 17
facilities and adopt or amend its development regulations as 18
necessary to provide for the siting of secure community transition 19
facilities consistent with statutory requirements applicable to these 20
facilities.21
(3) Any city or county not planning under RCW 36.70A.040 shall, 22
not later than September 1, 2002, establish a process for siting 23
secure community transition facilities and adopt or amend its 24
development regulations as necessary to provide for the siting of 25
such facilities consistent with statutory requirements applicable to 26
these facilities.27
(4) The office of financial management shall maintain a list of 28
those essential state public facilities that are required or likely 29
to be built within the next six years. The office of financial 30
management may at any time add facilities to the list.31
(5) No local comprehensive plan or development regulation may 32
preclude the siting of essential public facilities.33
(6) No person may bring a cause of action for civil damages based 34
on the good faith actions of any county or city to provide for the 35
siting of secure community transition facilities in accordance with 36
this section and with the requirements of chapter 12, Laws of 2001 37
2nd sp. sess. For purposes of this subsection, "person" includes, but 38
is not limited to, any individual, agency as defined in RCW 39
p. 21 2E2SSB 5536.SLPage 90 of 236
42.17A.005, corporation, partnership, association, and limited 1
liability entity.2
(7) Counties or cities siting facilities pursuant to subsection 3
(2) or (3) of this section shall comply with RCW 71.09.341.4
(8) The failure of a county or city to act by the deadlines 5
established in subsections (2) and (3) of this section is not:6
(a) A condition that would disqualify the county or city for 7
grants, loans, or pledges under RCW 43.155.070 or 70A.135.070;8
(b) A consideration for grants or loans provided under RCW 9
43.17.250(3); or10
(c) A basis for any petition under RCW 36.70A.280 or for any 11
private cause of action.12
Sec. 13. RCW 71.24.589 and 2019 c 314 s 29 are each amended to 13
read as follows:14
(1) Subject to funds appropriated by the legislature, the 15
authority shall ((implement a pilot project)) administer a grant 16
program for law enforcement assisted diversion which shall adhere to 17
law enforcement assisted diversion core principles recognized by the 18
law enforcement assisted diversion national support bureau, the 19
efficacy of which have been demonstrated in peer-reviewed research 20
studies.21
(2) ((Under the pilot project, the)) The authority must partner 22
with the law enforcement assisted diversion national support bureau 23
to award ((a contract)) contracts, subject to appropriation, for 24
((two or more geographic areas)) jurisdictions in the state of 25
Washington for law enforcement assisted diversion. Cities, counties, 26
and tribes ((may compete for participation in a pilot project)), 27
subdivisions thereof, public development authorities, and community-28
based organizations demonstrating support from necessary public 29
partners, may serve as the lead agency applying for funding. Funds 30
may be used to scale existing projects, and to invite additional 31
jurisdictions to launch law enforcement assisted diversion programs.32
(3) The ((pilot projects)) program must provide for securing 33
comprehensive technical assistance from law enforcement assisted 34
diversion implementation experts to develop and implement a law 35
enforcement assisted diversion program ((in the pilot project's 36
geographic areas)) in a way that ensures fidelity to the research-37
based law enforcement assisted diversion model. Sufficient funds must 38
p. 22 2E2SSB 5536.SLPage 91 of 236
be allocated from grant program funds to secure technical assistance 1
for the authority and for the implementing jurisdictions.2
(4) The key elements of a law enforcement assisted diversion 3
((pilot project)) program must include:4
(a) Long-term case management for individuals with substance use 5
disorders;6
(b) Facilitation and coordination with community resources 7
focusing on overdose prevention;8
(c) Facilitation and coordination with community resources 9
focused on the prevention of infectious disease transmission;10
(d) Facilitation and coordination with community resources 11
providing physical and behavioral health services;12
(e) Facilitation and coordination with community resources 13
providing medications for the treatment of substance use disorders;14
(f) Facilitation and coordination with community resources 15
focusing on housing, employment, and public assistance;16
(g) ((Twenty-four)) 24 hours per day and seven days per week 17
response to law enforcement for arrest diversions; and18
(h) Prosecutorial support for diversion services.19
(5) No civil liability may be imposed by any court on the state 20
or its officers or employees, an appointed or elected official, 21
public employee, public agency as defined in RCW 4.24.470, 22
combination of units of government and its employees as provided in 23
RCW 36.28A.010, nonprofit community-based organization, tribal 24
government entity, tribal organization, or urban Indian organization, 25
based on the administration of a law enforcement assisted diversion 26
program or activities carried out within the purview of a grant 27
received under this program except upon proof of bad faith or gross 28
negligence.29
Sec. 14. RCW 71.24.590 and 2019 c 314 s 30 are each amended to 30
read as follows:31
(1) When making a decision on an application for licensing or 32
certification of ((a)) an opioid treatment program, the department 33
shall:34
(a) Consult with the county legislative authorities in the area 35
in which an applicant proposes to locate a program and the city 36
legislative authority in any city in which an applicant proposes to 37
locate a program;38
p. 23 2E2SSB 5536.SLPage 92 of 236
(b) License or certify only programs that will be sited in 1
accordance with the appropriate county or city land use ordinances. 2
Counties and cities may require conditional use permits with 3
reasonable conditions for the siting of programs only to the extent 4
that such reasonable conditional use requirements applied to opioid 5
treatment programs are similarly applied to other essential public 6
facilities and health care settings. Pursuant to RCW 36.70A.200, no 7
local comprehensive plan or development regulation may preclude the 8
siting of essential public facilities;9
(c) Not discriminate in its licensing or certification decision 10
on the basis of the corporate structure of the applicant;11
(d) Consider the size of the population in need of treatment in 12
the area in which the program would be located and license or certify 13
only applicants whose programs meet the necessary treatment needs of 14
that population;15
(e) Consider the availability of other certified opioid treatment 16
programs near the area in which the applicant proposes to locate the 17
program;18
(f) Consider the transportation systems that would provide 19
service to the program and whether the systems will provide 20
reasonable opportunities to access the program for persons in need of 21
treatment;22
(g) Consider whether the applicant has, or has demonstrated in 23
the past, the capability to provide the appropriate services to 24
assist the persons who utilize the program in meeting goals 25
established by the legislature in RCW 71.24.585. The department shall 26
prioritize licensing or certification to applicants who have 27
demonstrated such capability and are able to measure their success in 28
meeting such outcomes;29
(h) ((Hold one public hearing in the community in which the 30
facility is proposed to be located. The hearing shall be held at a 31
time and location that are most likely to permit the largest number 32
of interested persons to attend and present testimony. The department 33
shall notify all appropriate media outlets of the time, date, and 34
location of the hearing at least three weeks in advance of the 35
hearing)) Provide public notice to all appropriate media outlets in 36
the community in which the facility is proposed to be located that 37
states the applicant is proposing a facility in that community.38
(2) ((A)) No city or county legislative authority may impose a 39
maximum capacity for ((a)) an opioid treatment program ((of not less 40
p. 24 2E2SSB 5536.SLPage 93 of 236
than three hundred fifty participants if necessary to address 1
specific local conditions cited by the county)).2
(3) A program applying for licensing or certification from the 3
department and a program applying for a contract from a state agency 4
that has been denied the licensing or certification or contract shall 5
be provided with a written notice specifying the rationale and 6
reasons for the denial.7
(4) Opioid treatment programs may order, possess, dispense, and 8
administer medications approved by the United States food and drug 9
administration for the treatment of opioid use disorder, alcohol use 10
disorder, tobacco use disorder, and reversal of opioid overdose. For 11
an opioid treatment program to order, possess, and dispense any other 12
legend drug, including controlled substances, the opioid treatment 13
program must obtain additional licensure as required by the 14
department, except for patient-owned medications.15
(5) Opioid treatment programs may accept, possess, and administer 16
patient-owned medications.17
(6) Registered nurses and licensed practical nurses may dispense 18
up to a ((thirty-one)) 31 day supply of medications approved by the 19
United States food and drug administration for the treatment of 20
opioid use disorder to patients of the opioid treatment program, 21
under an order or prescription and in compliance with 42 C.F.R. Sec. 22
8.12.23
(7) A mobile or fixed-site medication unit may be established as 24
part of a licensed opioid treatment program.25
(8) For the purpose of this chapter, "opioid treatment program" 26
means a program that:27
(a) Engages in the treatment of opioid use disorder with 28
medications approved by the United States food and drug 29
administration for the treatment of opioid use disorder and reversal 30
of opioid overdose, including methadone; and31
(b) Provides a comprehensive range of medical and rehabilitative 32
services.33
NEW SECTION. Sec. 15. A new section is added to chapter 43.330 34
RCW to read as follows:35
(1) Subject to funds appropriated for this specific purpose, a 36
program is established in the department to fund the construction 37
costs necessary to start up substance use disorder treatment and 38
p. 25 2E2SSB 5536.SLPage 94 of 236
services programs and recovery housing in regions of the state that 1
currently lack access to such programs.2
(2) This funding must be used to increase the number of substance 3
use disorder treatment and services programs and recovery housing in 4
underserved areas such as central and eastern Washington and rural 5
areas.6
NEW SECTION. Sec. 16. RCW 10.31.115 (Drug possession—Referral 7
to assessment and services) and 2021 c 311 s 13 are each repealed.8
Part V – Funding, Promotion, and Training for Recovery Residences9
NEW SECTION. Sec. 17. A new section is added to chapter 71.24 10
RCW to read as follows:11
Subject to the availability of funds appropriated for this 12
specific purpose, the authority shall:13
(1) Make sufficient funding available to support establishment of 14
an adequate and equitable stock of recovery residences in each region 15
of the state;16
(2) Establish a voucher program to allow accredited recovery 17
housing operators to hold bed space for individuals who are waiting 18
for treatment;19
(3) Conduct outreach to underserved and rural areas to support 20
the development of recovery housing, including adequate resources for 21
women, LGBTQIA+ communities, Black, indigenous, and other people of 22
color communities, immigrant communities, and youth; and23
(4) Develop a training for housing providers by January 1, 2024, 24
to assist them with providing appropriate service to LGBTQIA+ 25
communities, Black, indigenous, and other people of color 26
communities, and immigrant communities, including consideration of 27
topics like harassment, communication, antiracism, diversity, and 28
gender affirming behavior, and ensure applicants for grants or loans 29
related to recovery residences receive access to the training.30
Sec. 18. RCW 84.36.043 and 1998 c 174 s 1 are each amended to 31
read as follows:32
(1) The real and personal property used by a nonprofit 33
organization in providing emergency or transitional housing for low-34
income homeless persons as defined in RCW 35.21.685 or 36.32.415 or 35
p. 26 2E2SSB 5536.SLPage 95 of 236
victims of domestic violence who are homeless for personal safety 1
reasons is exempt from taxation if:2
(a) The charge, if any, for the housing does not exceed the 3
actual cost of operating and maintaining the housing; and4
(b)(i) The property is owned by the nonprofit organization; or5
(ii) The property is rented or leased by the nonprofit 6
organization and the benefit of the exemption inures to the nonprofit 7
organization.8
(2) The real and personal property used by a nonprofit 9
organization in maintaining an approved recovery residence registered 10
under RCW 41.05.760 is exempt from taxation if:11
(a) The charge for the housing does not exceed the actual cost of 12
operating and maintaining the housing; and13
(b)(i) The property is owned by the nonprofit organization; or14
(ii) The property is rented or leased by the nonprofit 15
organization and the benefit of the exemption inures to the nonprofit 16
organization.17
(3) As used in this section:18
(a) "Homeless" means persons, including families, who, on one 19
particular day or night, do not have decent and safe shelter nor 20
sufficient funds to purchase or rent a place to stay.21
(b) "Emergency housing" means a project that provides housing and 22
supportive services to homeless persons or families for up to sixty 23
days.24
(c) "Transitional housing" means a project that provides housing 25
and supportive services to homeless persons or families for up to two 26
years and that has as its purpose facilitating the movement of 27
homeless persons and families into independent living.28
(((3))) (d) "Recovery residence" has the same meaning as under 29
RCW 41.05.760.30
(4) The exemption in subsection (2) of this section applies to 31
taxes levied for collection in calendar years 2024 through 2033.32
(5) This exemption is subject to the administrative provisions 33
contained in RCW 84.36.800 through 84.36.865.34
NEW SECTION. Sec. 19. (1) This section is the tax preference 35
performance statement for the tax preference contained in section 18, 36
chapter . . ., Laws of 2023 [sp. sess.] (section 18 of this act). 37
This performance statement is only intended to be used for subsequent 38
evaluation of the tax preference. It is not intended to create a 39
p. 27 2E2SSB 5536.SLPage 96 of 236
private right of action by any party or to be used to determine 1
eligibility for preferential tax treatment.2
(2) The legislature categorizes this tax preference as one 3
intended to provide tax relief for certain businesses or individuals, 4
as indicated in RCW 82.32.808(2)(e).5
(3) By exempting property used by nonprofit organizations 6
maintaining approved recovery residences, it is the legislature's 7
specific public policy objective to maximize funding for recovery 8
residences to the extent possible, thereby increasing availability of 9
such residences.10
(4) To measure the effectiveness of the tax exemption provided in 11
section 18 of this act in achieving the specific public policy 12
objectives described in subsection (3) of this section, the joint 13
legislative audit and review committee must evaluate:14
(a) Annual changes in the total number of parcels qualifying for 15
the exemption under section 18 of this act;16
(b) The amount of annual property tax relief resulting from the 17
tax exemption under section 18 of this act;18
(c) The average annual number of people housed at recovery 19
residences located on property qualifying for the exemption under 20
section 18 of this act;21
(d) The annualized amount charged for housing at recovery 22
residences located on property qualifying for the exemption under 23
section 18 of this act and the annualized estimated increase in the 24
charge for housing if the properties had not been eligible for the 25
exemption; and26
(e) The annual amount of expenditures by nonprofits to maintain 27
recovery residences located on property qualifying for the exemption 28
under section 18 of this act.29
(5) The legislature intends to extend the expiration date of the 30
property tax exemption under section 18 of this act if the review by 31
the joint legislative audit and review committee finds that:32
(a) The number of properties qualifying for the exemption under 33
section 18 of this act has increased;34
(b) The number of individuals using recovery housing located on 35
property qualifying for the exemption under section 18 of this act 36
has increased; and37
(c) The amount charged for recovery housing is reasonably 38
consistent with the actual cost of operating and maintaining the 39
housing.40
p. 28 2E2SSB 5536.SLPage 97 of 236
(6) In order to obtain the data necessary to perform the review 1
in subsection (4) of this section, the joint legislative audit and 2
review committee may refer to:3
(a) Initial applications for the tax exemption under section 18 4
of this act as approved by the department of revenue under RCW 5
84.36.815;6
(b) Annual financial statements prepared by nonprofit entities 7
claiming the tax exemption under section 18 of this act;8
(c) Filings with the federal government to maintain federal tax 9
exempt status by nonprofit organizations claiming the tax exemption 10
under section 18 of this act; and11
(d) Any other data necessary for the evaluation under subsection 12
(4) of this section.13
Part VI – Training for Parents of Children with Substance Use Disorder 14
and Caseworkers Within the Department of Children, Youth, and 15
Families16
NEW SECTION. Sec. 20. A new section is added to chapter 71.24 17
RCW to read as follows:18
(1) The authority, in consultation with the department of 19
children, youth, and families, shall develop a training for parents 20
of adolescents and transition age youth with substance use disorders 21
by June 30, 2024, which training must build on and be consistent and 22
compatible with existing training developed by the authority for 23
families impacted by substance use disorder, and addressing the 24
following:25
(a) Science and education related to substance use disorders and 26
recovery;27
(b) Adaptive and functional communication strategies for 28
communication with a loved one about their substance use disorder, 29
including positive communication skills and strategies to influence 30
motivation and behavioral change;31
(c) Self-care and means of obtaining support;32
(d) Means to obtain opioid overdose reversal medication when 33
appropriate and instruction on proper use; and34
(e) Suicide prevention.35
(2) The authority and the department of children, youth, and 36
families shall make this training publicly available, and the 37
department of children, youth, and families must promote the training 38
p. 29 2E2SSB 5536.SLPage 98 of 236
to licensed foster parents and caregivers, including any tribally 1
licensed foster parents and tribal caregivers.2
NEW SECTION. Sec. 21. A new section is added to chapter 43.216 3
RCW to read as follows:4
The department shall provide opioid overdose reversal medication 5
and training in the use of such medication to all department staff 6
whose job duties require in-person service or case management for 7
child welfare or juvenile rehabilitation clients.8
Part VII – Recovery Navigator Programs9
NEW SECTION. Sec. 22. A new section is added to chapter 71.24 10
RCW to read as follows:11
(1) The authority must develop and implement a data integration 12
platform by June 30, 2025, to support recovery navigator programs, 13
law enforcement assisted diversion programs, arrest and jail 14
alternative programs, and similar diversion efforts. The data 15
integration platform shall:16
(a) Serve as a statewide common database available for tracking 17
diversion efforts across the state;18
(b) Serve as a data collection and management tool for 19
practitioners, allowing practitioners to input data and information 20
relating to the utilization and outcomes of pretrial diversions, 21
including whether such diversions were terminated, were successfully 22
completed and resulted in dismissal, or are still ongoing;23
(c) Assist in standardizing definitions and practices; and24
(d) Track pretrial diversion participants by race, ethnicity, 25
gender, gender expression or identity, disability status, and age.26
(2) If possible, the authority must leverage and interact with 27
existing platforms already in use in efforts funded by the authority. 28
The authority must establish a quality assurance process for 29
behavioral health administrative services organizations and employ 30
data validation for fields in the data collection workbook. The 31
authority must engage and consult with the law enforcement assisted 32
diversion national support bureau on data integration approaches, 33
platforms, quality assurance protocols, and validation practices.34
(3) Information submitted to the data integration platform is 35
exempt from public disclosure requirements under chapter 42.56 RCW.36
p. 30 2E2SSB 5536.SLPage 99 of 236
Sec. 23. RCW 42.56.360 and 2020 c 323 s 2 are each amended to 1
read as follows:2
(1) The following health care information is exempt from 3
disclosure under this chapter:4
(a) Information obtained by the pharmacy quality assurance 5
commission as provided in RCW 69.45.090;6
(b) Information obtained by the pharmacy quality assurance 7
commission or the department of health and its representatives as 8
provided in RCW 69.41.044, 69.41.280, and 18.64.420;9
(c) Information and documents created specifically for, and 10
collected and maintained by a quality improvement committee under RCW 11
43.70.510, 70.230.080, or 70.41.200, or by a peer review committee 12
under RCW 4.24.250, or by a quality assurance committee pursuant to 13
RCW 74.42.640 or 18.20.390, or by a hospital, as defined in RCW 14
43.70.056, for reporting of health care-associated infections under 15
RCW 43.70.056, a notification of an incident under RCW 70.56.040(5), 16
and reports regarding adverse events under RCW 70.56.020(2)(b), 17
regardless of which agency is in possession of the information and 18
documents;19
(d)(i) Proprietary financial and commercial information that the 20
submitting entity, with review by the department of health, 21
specifically identifies at the time it is submitted and that is 22
provided to or obtained by the department of health in connection 23
with an application for, or the supervision of, an antitrust 24
exemption sought by the submitting entity under RCW 43.72.310;25
(ii) If a request for such information is received, the 26
submitting entity must be notified of the request. Within ten 27
business days of receipt of the notice, the submitting entity shall 28
provide a written statement of the continuing need for 29
confidentiality, which shall be provided to the requester. Upon 30
receipt of such notice, the department of health shall continue to 31
treat information designated under this subsection (1)(d) as exempt 32
from disclosure;33
(iii) If the requester initiates an action to compel disclosure 34
under this chapter, the submitting entity must be joined as a party 35
to demonstrate the continuing need for confidentiality;36
(e) Records of the entity obtained in an action under RCW 37
18.71.300 through 18.71.340;38
(f) Complaints filed under chapter 18.130 RCW after July 27, 39
1997, to the extent provided in RCW 18.130.095(1);40
p. 31 2E2SSB 5536.SLPage 100 of 236
(g) Information obtained by the department of health under 1
chapter 70.225 RCW;2
(h) Information collected by the department of health under 3
chapter 70.245 RCW except as provided in RCW 70.245.150;4
(i) Cardiac and stroke system performance data submitted to 5
national, state, or local data collection systems under RCW 6
70.168.150(2)(b);7
(j) All documents, including completed forms, received pursuant 8
to a wellness program under RCW 41.04.362, but not statistical 9
reports that do not identify an individual;10
(k) Data and information exempt from disclosure under RCW 11
43.371.040; ((and))12
(l) Medical information contained in files and records of members 13
of retirement plans administered by the department of retirement 14
systems or the law enforcement officers' and firefighters' plan 2 15
retirement board, as provided to the department of retirement systems 16
under RCW 41.04.830; and17
(m) Data submitted to the data integration platform under section 18
22 of this act.19
(2) Chapter 70.02 RCW applies to public inspection and copying of 20
health care information of patients.21
(3)(a) Documents related to infant mortality reviews conducted 22
pursuant to RCW 70.05.170 are exempt from disclosure as provided for 23
in RCW 70.05.170(3).24
(b)(i) If an agency provides copies of public records to another 25
agency that are exempt from public disclosure under this subsection 26
(3), those records remain exempt to the same extent the records were 27
exempt in the possession of the originating entity.28
(ii) For notice purposes only, agencies providing exempt records 29
under this subsection (3) to other agencies may mark any exempt 30
records as "exempt" so that the receiving agency is aware of the 31
exemption, however whether or not a record is marked exempt does not 32
affect whether the record is actually exempt from disclosure.33
(4) Information and documents related to maternal mortality 34
reviews conducted pursuant to RCW 70.54.450 are confidential and 35
exempt from public inspection and copying.36
NEW SECTION. Sec. 24. A new section is added to chapter 71.24 37
RCW to read as follows:38
p. 32 2E2SSB 5536.SLPage 101 of 236
(1) The authority shall contract with the Washington state 1
institute for public policy to conduct a study of the long-term 2
effectiveness of the recovery navigator programs under RCW 71.24.115 3
and law enforcement assisted diversion programs under RCW 71.24.589 4
implemented in Washington state, with reports due by June 30, 2028, 5
June 30, 2033, and June 30, 2038, and an assessment as described 6
under subsection (2) of this section. The Washington state institute 7
for public policy shall collaborate with the authority and the 8
substance use recovery services advisory committee under RCW 9
71.24.546 on the topic of data collection and to determine the 10
parameters of the report, which shall include:11
(a) Recidivism rates for recovery navigator and law enforcement 12
assisted diversion program participants, including a comparison 13
between individuals who did and did not use the pretrial diversion 14
program under section 9 of this act, and outcomes for these 15
individuals;16
(b) Trends or disparities in utilization of the recovery 17
navigator and LEAD programs and outcomes based on race, ethnicity, 18
gender, gender expression or identity, disability status, age, and 19
other appropriate characteristics; and20
(c) Recommendations, if any, for modification and improvement of 21
the recovery navigator program or law enforcement assisted diversion 22
programs.23
(2)(a) The Washington state institute for public policy shall, in 24
consultation with the authority and other key stakeholders, conduct a 25
descriptive assessment of the current status of statewide recovery 26
navigator programs and the degree to which the implementation of 27
these programs reflects fidelity to the core principles of the law 28
enforcement assisted diversion program as established by the law 29
enforcement assisted diversion national support bureau in its toolkit 30
as it existed on July 1, 2023, which shall include:31
(i) The results of the law enforcement assisted diversion 32
standards fidelity index analysis, conducted by an independent 33
research scientist with expertise in law enforcement assisted 34
diversion evaluation, including findings with respect to each 35
standard assessed, for each recovery navigator program, in each 36
behavioral health administrative services organization region;37
(ii) Reports on utilization of technical support from the law 38
enforcement assisted diversion national support bureau by recovery 39
p. 33 2E2SSB 5536.SLPage 102 of 236
navigator program contractors, the authority, and behavioral health 1
administrative services organizations; and2
(iii) Barriers to achieving fidelity to core principles.3
(b) The report shall also describe law enforcement assisted 4
diversion programs in Washington state that are not affiliated with 5
recovery navigator programs.6
(c) The report may include recommendations for changes to 7
recovery navigator programs reported by recovery navigator program 8
administrators, stakeholders, or participants.9
(d) The authority, behavioral health administrative services 10
organizations, and other recovery navigator program administrators 11
shall cooperate with the institute in making this assessment.12
(e) The institute shall submit this assessment to the governor 13
and relevant committees of the legislature by June 30, 2024.14
(3) The authority shall cooperate with the Washington state 15
institute for public policy to provide data for the assessment and 16
reports under this section.17
(4) The authority must establish an expedited preapproval process 18
by August 1, 2023, that allows requests for the use of data to be 19
forwarded to the Washington state institutional review board without 20
delay when the request is made by the Washington state institute for 21
public policy for the purpose of completing a study that has been 22
directed by the legislature.23
Sec. 25. RCW 71.24.115 and 2021 c 311 s 2 are each amended to 24
read as follows:25
(1) Each behavioral health administrative services organization 26
shall establish ((a)) recovery navigator ((program)) programs with 27
the goal of providing law enforcement and other criminal legal system 28
personnel with a credible alternative to further legal system 29
involvement for criminal activity that stems from unmet behavioral 30
health needs or poverty. The programs shall work to improve community 31
health and safety by reducing individuals' involvement with the 32
criminal legal system through the use of specific human services 33
tools and in coordination with community input. Each program must 34
include a dedicated project manager and be governed by a policy 35
coordinating group comprised, in alignment with the core principles, 36
of local executive and legislative officials, public safety agencies, 37
including police and prosecutors, and civil rights, public defense, 38
and human services organizations.39
p. 34 2E2SSB 5536.SLPage 103 of 236
(2) The recovery navigator programs shall be organized on a scale 1
that permits meaningful engagement, collaboration, and coordination 2
with local law enforcement and municipal agencies through the policy 3
coordinating groups. The ((program)) programs shall provide 4
community-based outreach, intake, assessment, and connection to 5
services and, as appropriate, long-term intensive case management and 6
recovery coaching services, to youth and adults with substance use 7
disorder, including for persons with co-occurring substance use 8
disorders and mental health conditions, who are referred to the 9
program from diverse sources and shall facilitate and coordinate 10
connections to a broad range of community resources for youth and 11
adults with substance use disorder, including treatment and recovery 12
support services. Recovery navigator programs must serve and 13
prioritize individuals who are actually or potentially exposed to the 14
criminal legal system with respect to unlawful behavior connected to 15
substance use or other behavioral health issues.16
(((2) The)) (3) By June 30, 2024, the authority shall 17
((establish)) revise its uniform program standards for behavioral 18
health administrative services organizations to follow in the design 19
of their recovery navigator programs to achieve fidelity with the 20
core principles. The uniform program standards must be modeled upon 21
the components of the law enforcement assisted diversion program and 22
address project management, field engagement, biopsychosocial 23
assessment, intensive case management and care coordination, 24
stabilization housing when available and appropriate, and, as 25
necessary, legal system coordination for participants' legal cases 26
that may precede or follow referral to the program. The uniform 27
program standards must incorporate the law enforcement assisted 28
diversion framework for diversion at multiple points of engagement 29
with the criminal legal system, including prearrest, prebooking, 30
prefiling, and for ongoing case conferencing with law enforcement, 31
prosecutors, community stakeholders, and program case managers. The 32
authority must adopt the uniform program standards from the 33
components of the law enforcement assisted diversion program to 34
accommodate an expanded population of persons with substance use 35
disorders, including persons with co-occurring substance use 36
disorders and mental health conditions, ((and allow)) provide for 37
referrals from a broad range of sources, and require prioritization 38
of those who are or likely will be exposed to the criminal legal 39
system related to their behavioral health challenges. In addition to 40
p. 35 2E2SSB 5536.SLPage 104 of 236
accepting referrals from law enforcement and courts of limited 1
jurisdiction, the uniform program standards must provide guidance for 2
accepting referrals on behalf of persons with substance use 3
disorders, including persons with co-occurring substance use 4
disorders and mental health conditions, from various sources 5
including, but not limited to, self-referral, family members of the 6
individual, emergency department personnel, persons engaged with 7
serving homeless persons, including those living unsheltered or in 8
encampments, fire department personnel, emergency medical service 9
personnel, community-based organizations, members of the business 10
community, harm reduction program personnel, faith-based organization 11
staff, and other sources within the criminal legal system, ((as 12
outlined)) so that individuals are engaged as early as possible 13
within the sequential intercept model. In developing response time 14
requirements within the statewide program standards, the authority 15
shall require, subject to the availability of amounts appropriated 16
for this specific purpose, that responses to referrals from law 17
enforcement occur immediately for in-custody referrals and shall 18
strive for rapid response times to other appropriate settings such as 19
emergency departments and courts of limited jurisdiction.20
(((3))) (4) Subject to the availability of amounts appropriated 21
for this specific purpose, the authority shall provide funding to 22
each behavioral health administrative services organization for the 23
((development of its)) continuation of and, as required by this 24
section, the revisions to and reorganization of the recovery 25
navigator ((program)) programs they fund. Before receiving funding 26
for implementation and ongoing administration, each behavioral health 27
administrative services organization must submit a program plan that 28
demonstrates the ability to fully comply with statewide program 29
standards. The authority shall establish a schedule for the regular 30
review of recovery navigator programs funded by behavioral health 31
administrative services ((organizations' programs)) organizations. 32
The authority shall arrange for technical assistance to be provided 33
by the LEAD national support bureau to all behavioral health 34
administrative services organizations, the authority, contracted 35
providers, and independent stakeholders and partners, such as 36
prosecuting attorneys and law enforcement.37
(((4))) (5) Each behavioral health administrative services 38
organization must have a substance use disorder regional 39
administrator for its recovery navigator program. The regional 40
p. 36 2E2SSB 5536.SLPage 105 of 236
administrator shall be responsible for assuring compliance with 1
program standards, including staffing standards. Each recovery 2
navigator program must maintain a sufficient number of appropriately 3
trained personnel for providing intake and referral services, 4
conducting comprehensive biopsychosocial assessments, providing 5
intensive case management services, and making warm handoffs to 6
treatment and recovery support services along the continuum of care. 7
Program staff must include people with lived experience with 8
substance use disorder to the extent possible. The substance use 9
disorder regional administrator must assure that staff who are 10
conducting intake and referral services and field assessments are 11
paid a livable and competitive wage and have appropriate initial 12
training and receive continuing education.13
(((5))) (6) Each recovery navigator program must submit quarterly 14
reports to the authority with information identified by the authority 15
and the substance use recovery services advisory committee. The 16
reports must be provided to the substance use recovery services 17
advisory committee for discussion at meetings following the 18
submission of the reports.19
(7) No civil liability may be imposed by any court on the state 20
or its officers or employees, an appointed or elected official, 21
public employee, public agency as defined in RCW 4.24.470, 22
combination of units of government and its employees as provided in 23
RCW 36.28A.010, nonprofit community-based organization, tribal 24
government entity, tribal organization, or urban Indian organization, 25
based on the administration of a recovery navigator program except 26
upon proof of bad faith or gross negligence.27
(8) For the purposes of this section, the term "core principles" 28
means the core principles of a law enforcement assisted diversion 29
program, as established by the law enforcement assisted diversion 30
national support bureau in its toolkit, as it existed on July 1, 31
2023.32
Part VIII – Establishing a Pilot Program for Health Engagement Hubs33
NEW SECTION. Sec. 26. A new section is added to chapter 71.24 34
RCW to read as follows:35
(1)(a) The authority shall implement a pilot program for health 36
engagement hubs by August 1, 2024. The pilot program will test the 37
functionality and operability of health engagement hubs, including 38
p. 37 2E2SSB 5536.SLPage 106 of 236
whether and how to incorporate and build on existing medical, harm 1
reduction, treatment, and social services in order to create an all-2
in-one location where people who use drugs can access such services.3
(b) Subject to amounts appropriated, the authority shall 4
establish pilot programs on at least two sites, with one site located 5
in an urban area and one located in a rural area.6
(c) The authority shall report on the pilot program results, 7
including recommendations for expansion, and rules and payment 8
structures, to the legislature no later than August 1, 2026.9
(2) The authority shall develop payment structures for health 10
engagement hubs by June 30, 2024. Subject to the availability of 11
funds appropriated for this purpose, and to the extent allowed under 12
federal law, the authority shall direct medicaid managed care 13
organizations to adopt a value-based bundled payment methodology in 14
contracts with health engagement hubs and other opioid treatment 15
providers. The authority shall not implement this requirement in 16
managed care contracts unless expressly authorized by the 17
legislature.18
(3) A health engagement hub is intended to:19
(a) Serve as an all-in-one location where people 18 years of age 20
or older who use drugs can access a range of medical, harm reduction, 21
treatment, and social services;22
(b) Be affiliated with existing syringe service programs, 23
federally qualified health centers, community health centers, 24
overdose prevention sites, safe consumption sites, patient-centered 25
medical homes, tribal behavioral health programs, peer run 26
organizations such as clubhouses, services for unhoused people, 27
supportive housing, and opioid treatment programs including mobile 28
and fixed-site medication units established under an opioid treatment 29
program, or other appropriate entity;30
(c) Provide referrals or access to methadone and other 31
medications for opioid use disorder;32
(d) Function as a patient-centered medical home by offering high-33
quality, cost-effective patient-centered care, including wound care;34
(e) Provide harm reduction services and supplies; and35
(f) Provide linkage to housing, transportation, and other support 36
services.37
Part IX – Education and Employment Pathways38
p. 38 2E2SSB 5536.SLPage 107 of 236
NEW SECTION. Sec. 27. A new section is added to chapter 71.24 1
RCW to read as follows:2
Subject to funding provided for this specific purpose, the 3
authority shall establish a grant program for providers of 4
employment, education, training, certification, and other supportive 5
programs designed to provide persons recovering from a substance use 6
disorder with employment and education opportunities. The grant 7
program shall employ a low-barrier application and give priority to 8
programs that engage with black, indigenous, persons of color, and 9
other historically underserved communities.10
Part X – Providing a Statewide Directory of Recovery Services11
NEW SECTION. Sec. 28. A new section is added to chapter 71.24 12
RCW to read as follows:13
Subject to funding provided for this specific purpose, the 14
authority must collaborate with the department and the department of 15
social and health services to expand the Washington recovery helpline 16
and the recovery readiness asset tool to provide a dynamically 17
updated statewide behavioral health treatment and recovery support 18
services mapping tool that includes a robust resource database for 19
those seeking services and a referral system to be incorporated 20
within the locator tool to help facilitate the connection between an 21
individual and a facility that is currently accepting new referrals. 22
The tool must include dual interface capability, one for public 23
access and one for internal use and management.24
Part XI – Investing Adequately in Statewide Diversion Services25
NEW SECTION. Sec. 29. The appropriations in this section are 26
provided to the department of health and are subject to the following 27
conditions and limitations:28
The following sums, or so much thereof as may be necessary, are 29
each appropriated: $47,000 from the state general fund-local for the 30
fiscal biennium ending June 30, 2025; and $13,000 from the health 31
professions account for the fiscal biennium ending June 30, 2025. The 32
amounts in this section are provided solely for the department of 33
health to adopt rules related to mobile medication units and conduct 34
inspections for such units under RCW 71.24.590.35
p. 39 2E2SSB 5536.SLPage 108 of 236
NEW SECTION. Sec. 30. The appropriations in this section are 1
provided to the department of revenue and are subject to the 2
following conditions and limitations:3
The following sums, or so much thereof as may be necessary, are 4
each appropriated: $594,000 from the state general fund for the 5
fiscal year ending June 30, 2024; and $140,000 from the state general 6
fund for the fiscal year ending June 30, 2025. The amounts in this 7
section are provided solely for the department of revenue to 8
administer the recovery residence tax exemption created in RCW 9
84.36.043.10
NEW SECTION. Sec. 31. The appropriation in this section is 11
provided to the joint legislative audit and review committee and is 12
subject to the following conditions and limitations:13
The sum of $23,000, or as much thereof as may be necessary, is 14
appropriated for the fiscal biennium ending June 30, 2025, from the 15
performance audits of government account. The amount in this section 16
is provided solely for the purposes of conducting a tax preference 17
review of the property tax exemption for recovery residences under 18
RCW 84.36.043.19
NEW SECTION. Sec. 32. The appropriation in this section is 20
provided to the Washington state patrol and is subject to the 21
following conditions and limitations:22
The following sums, or so much thereof as may be necessary, are 23
each appropriated: $813,000 from the state general fund for the 24
fiscal year ending June 30, 2024; and $450,000 from the state general 25
fund for the fiscal year ending June 30, 2025. The amounts in this 26
section are provided solely to support the Washington state patrol 27
bureau of forensic laboratory services in completing the necessary 28
analysis for any evidence submitted for a suspected violation of RCW 29
69.50.4011(1)(b), 69.50.4013, or 69.41.030 within 45 days of receipt 30
of the request for analysis.31
NEW SECTION. Sec. 33. The appropriations in this section are 32
provided to the state health care authority and are subject to the 33
following conditions and limitations:34
(1) The following sums, or so much thereof as may be necessary, 35
are each appropriated: $3,600,000 from the opioid abatement 36
settlement account for the fiscal biennium ending June 30, 2025; 37
p. 40 2E2SSB 5536.SLPage 109 of 236
$700,000 from the state general fund for the fiscal year ending June 1
30, 2024; and $700,000 from the state general fund for the fiscal 2
year ending June 30, 2025. The amounts in this subsection are 3
provided solely for the purposes of maintaining a memorandum of 4
understanding with the criminal justice training commission to 5
provide ongoing funding for community grants under RCW 36.28A.450.6
(2) The following sums, or so much thereof as may be necessary, 7
are each appropriated: $3,783,000 from the opioid abatement 8
settlement account for the fiscal biennium ending June 30, 2025; and 9
$3,810,000 from the general fund-federal for the fiscal biennium 10
ending June 30, 2025. The amounts in this subsection are provided 11
solely for the administration of this act.12
(3) The following sums, or so much thereof as may be necessary, 13
are each appropriated: $1,000,000 from the state general fund for the 14
fiscal year ending June 30, 2024; and $1,000,000 from the state 15
general fund for the fiscal year ending June 30, 2025. The amounts in 16
this subsection are provided solely for the authority to award grants 17
to crisis services providers to establish and expand 23-hour crisis 18
relief center capacity. It is the intent of the legislature that 19
grants are awarded to an equivalent number of providers to the west 20
and the east of the Cascade mountains. The authority must consider 21
the geographic distribution of proposed grant applicants and the 22
regional need for 23-hour crisis relief centers when awarding grant 23
funds.24
(4) The sum of $4,000,000, or as much thereof as may be 25
necessary, is appropriated for the fiscal biennium ending June 30, 26
2025, from the opioid abatement settlement account. The amount in 27
this subsection is provided solely for the authority to establish a 28
health engagement hub pilot program to include both urban and rural 29
locations under section 26 of this act.30
(5) The sum of $3,768,000, or as much thereof as may be 31
necessary, is appropriated for the fiscal biennium ending June 30, 32
2025, from the opioid abatement settlement account. The amount in 33
this subsection is provided solely for the authority to increase the 34
number of mobile methadone units operated by existing opioid 35
treatment providers, increase the number of opioid treatment provider 36
fixed medication units operated by existing opioid treatment 37
providers, and to expand opioid treatment programs with a 38
prioritization for rural areas.39
p. 41 2E2SSB 5536.SLPage 110 of 236
(6) The sum of $5,242,000, or as much thereof as may be 1
necessary, is appropriated for the fiscal biennium ending June 30, 2
2025, from the opioid abatement settlement account. The amount in 3
this subsection is provided solely for the authority to provide 4
grants to providers of employment and educational services to 5
individuals with substance use disorder under section 27 of this act.6
(7) The following sums, or so much thereof as may be necessary, 7
are each appropriated: $750,000 from the state general fund for the 8
fiscal year ending June 30, 2024; $750,000 from the state general 9
fund for the fiscal year ending June 30, 2025; and $500,000 from the 10
opioid abatement settlement account for the fiscal biennium ending 11
June 30, 2025. The amounts in this subsection are provided solely for 12
the authority to provide grants to support substance use disorder 13
family navigator programs.14
(8) The following sums, or so much thereof as may be necessary, 15
are each appropriated: $3,750,000 from the state general fund for the 16
fiscal year ending June 30, 2024; and $3,750,000 from the state 17
general fund for the fiscal year ending June 30, 2025. The amounts in 18
this subsection are provided solely for the authority to provide 19
short-term housing vouchers for individuals with substance use 20
disorders, with a focus on providing such resources to people in the 21
five most populous counties of the state.22
(9) The following sums, or so much thereof as may be necessary, 23
are each appropriated: $2,000,000 from the state general fund for the 24
fiscal year ending June 30, 2024; and $2,000,000 from the state 25
general fund for the fiscal year ending June 30, 2025. The amounts in 26
this subsection are provided solely for the authority to provide 27
grants for the operational costs of new staffed recovery residences 28
which serve individuals with substance use disorders who require more 29
support than a level 1 recovery residence, with a focus on providing 30
grants to recovery residences which serve individuals in the five 31
most populous counties of the state.32
(10) The following sums, or so much thereof as may be necessary, 33
are each appropriated: $1,000,000 from the state general fund for the 34
fiscal year ending June 30, 2024; and $1,000,000 from the state 35
general fund for the fiscal year ending June 30, 2025. The amounts in 36
this subsection are provided solely for the authority to support the 37
provision of behavioral health co-responder services on nonlaw 38
enforcement emergency medical response teams.39
p. 42 2E2SSB 5536.SLPage 111 of 236
(11) The following sums, or so much thereof as may be necessary, 1
are each appropriated: $250,000 from the state general fund for the 2
fiscal year ending June 30, 2024; and $250,000 from the state general 3
fund for the fiscal year ending June 30, 2025. The amounts in this 4
subsection are provided solely for the authority to continue and 5
increase a contract for services funded in section 215(127), chapter 6
297, Laws of 2022 (ESSB 5693) to provide information and support 7
related to safe housing and support services for youth exiting 8
inpatient mental health and/or substance use disorder facilities to 9
stakeholders, inpatient treatment facilities, young people, and other 10
community providers that serve unaccompanied youth and young adults.11
(12) The following sums, or so much thereof as may be necessary, 12
are each appropriated: $2,500,000 from the state general fund for the 13
fiscal year ending June 30, 2024; and $2,500,000 from the state 14
general fund for the fiscal year ending June 30, 2025. The amounts in 15
this subsection are provided solely for the authority to award 16
contracts through the grant program for law enforcement assisted 17
diversion under RCW 71.24.589.18
NEW SECTION. Sec. 34. The appropriations in this section are 19
provided to the department of commerce and are subject to the 20
following conditions and limitations:21
The following sums, or so much thereof as may be necessary, are 22
each appropriated: $1,500,000 from the state general fund for the 23
fiscal year ending June 30, 2024; and $1,500,000 from the state 24
general fund for the fiscal year ending June 30, 2025. The amounts in 25
this section are provided solely for the office of homeless youth to 26
administer a competitive grant process to award funding to licensed 27
youth shelters, HOPE centers, and crisis residential centers to 28
provide behavioral health support services, including substance use 29
disorder services, for youth in crisis, and to increase funding for 30
current grantees.31
NEW SECTION. Sec. 35. The appropriations in this section are 32
provided to the office of public defense and are subject to the 33
following conditions and limitations:34
The following sums, or so much thereof as may be necessary, are 35
each appropriated: $3,000,000 from the state general fund for the 36
fiscal year ending June 30, 2024; and $6,000,000 from the state 37
general fund for the fiscal year ending June 30, 2025. The amounts in 38
p. 43 2E2SSB 5536.SLPage 112 of 236
this section are provided solely for the purpose of section 39 of 1
this act.2
Part XII – Streamlining Substance Use Disorder Treatment Assessments3
NEW SECTION. Sec. 36. A new section is added to chapter 71.24 4
RCW to read as follows:5
(1) The authority shall convene a work group to recommend changes 6
to systems, policies, and processes related to intake, screening, and 7
assessment for substance use disorder services, with the goal to 8
broaden the workforce capable of administering substance use disorder 9
assessments and to make the assessment process as brief as possible, 10
including only what is necessary to manage utilization and initiate 11
care. The assessment shall be low barrier, person-centered, and 12
amenable to administration in diverse health care settings and by a 13
range of health care professionals. The assessment shall consider the 14
person's self-identified needs and preferences when evaluating 15
direction of treatment and may include different components based on 16
the setting, context, and past experience with the client.17
(2) The work group must include care providers, payors, people 18
who use drugs, individuals in recovery from substance use disorder, 19
and other individuals recommended by the authority. The work group 20
shall present its recommendations to the governor and appropriate 21
committees of the legislature by December 1, 2024.22
Sec. 37. RCW 18.64.600 and 2020 c 244 s 2 are each amended to 23
read as follows:24
(1) The license of location for a pharmacy licensed under this 25
chapter may be extended to a remote dispensing site where technology 26
is used to dispense medications ((approved by the United States food 27
and drug administration)) used for the treatment of opioid use 28
disorder or its symptoms.29
(2) In order for a pharmacy to use remote dispensing sites, a 30
pharmacy must register each separate remote dispensing site with the 31
commission.32
(3) The commission shall adopt rules that establish minimum 33
standards for remote dispensing sites registered under this section. 34
The minimum standards shall address who may retrieve medications for 35
opioid use disorder stored in or at a remote dispensing site pursuant 36
to a valid prescription or chart order. The minimum standards must 37
p. 44 2E2SSB 5536.SLPage 113 of 236
require the pharmacy be responsible for stocking and maintaining a 1
perpetual inventory of the medications for opioid use disorder stored 2
in or at the registered remote dispensing site. The dispensing 3
technology may be owned by either the pharmacy or the registered 4
remote dispensing site.5
(4) The secretary may adopt rules to establish a reasonable fee 6
for obtaining and renewing a registration issued under this section.7
(5) The registration issued under this section will be considered 8
as part of the pharmacy license issued under RCW 18.64.043. If the 9
underlying pharmacy license is not active, then the registration 10
shall be considered inoperable by operation of law.11
Part XIII - Health Care Authority Comprehensive Data Reporting12
Requirements13
NEW SECTION. Sec. 38. A new section is added to chapter 71.24 14
RCW to read as follows:15
(1) The authority is responsible for providing regular 16
assessments of the prevalence of substance use disorders and 17
interactions of persons with substance use disorder with service 18
providers, nonprofit service providers, first responders, health care 19
facilities, and law enforcement agencies. Beginning in 2026, the 20
annual report required in subsection (3)(a) of this section shall 21
include a comprehensive assessment of the information described in 22
this subsection for the prior calendar year.23
(2)(a) The authority shall identify the types and sources of data 24
necessary to implement the appropriate means and methods of gathering 25
data to provide the information required in subsection (1) of this 26
section.27
(b) The authority must provide a preliminary inventory report to 28
the governor and the legislature by December 1, 2023, and a final 29
inventory report by December 1, 2024. The reports must:30
(i) Identify existing types and sources of data available to the 31
authority to provide the information required in subsection (1) of 32
this section and what data are necessary but currently unavailable to 33
the authority;34
(ii) Include recommendations for new data connections, new data-35
sharing authority, and sources of data that are necessary to provide 36
the information required in subsection (1) of this section; and37
p. 45 2E2SSB 5536.SLPage 114 of 236
(iii) Include recommendations, including any necessary 1
legislation, regarding the development of reporting mechanisms 2
between the authority and service providers, nonprofit service 3
providers, health care facilities, law enforcement agencies, and 4
other state agencies to gather the information required in subsection 5
(1) of this section.6
(3)(a) Beginning July 1, 2024, and each July 1st thereafter until 7
July 1, 2028, the authority shall provide an implementation report to 8
the governor and the legislature regarding recovery residences, 9
recovery navigator programs, the health engagement pilot programs, 10
and the law enforcement assisted diversion grants program. The report 11
shall include:12
(i) The number of contracts awarded to law enforcement assisted 13
diversion programs, including the amount awarded in the contract, and 14
the names and service locations of contract recipients;15
(ii) The location of recovery residences, recovery navigator 16
programs, health engagement hub pilot programs, and law enforcement 17
assisted diversion programs;18
(iii) The scope and nature of services provided by recovery 19
navigator programs, health engagement hub pilot programs, and law 20
enforcement assisted diversion programs;21
(iv) The number of individuals served by recovery residences, 22
recovery navigator programs, health engagement hub pilot programs, 23
and law enforcement assisted diversion programs;24
(v) If known, demographic data concerning the utilization of 25
these services by overburdened and underrepresented communities; and26
(vi) The number of grants awarded to providers of employment, 27
education, training, certification, and other supportive programs, 28
including the amount awarded in each grant and the names of provider 29
grant recipients, as provided for in section 27 of this act.30
(b) The data obtained by the authority under this section shall 31
be integrated with the Washington state institute for public policy 32
report under section 24 of this act.33
(4) Beginning in the July 1, 2027, report in subsection (3)(a) of 34
this section, the authority shall provide:35
(a) The results and effectiveness of the authority's 36
collaboration with the department of health and the department of 37
social and health services to expand the Washington recovery helpline 38
and recovery readiness asset tool to provide a dynamically updated 39
statewide behavioral health treatment and recovery support services 40
p. 46 2E2SSB 5536.SLPage 115 of 236
mapping tool, including the results and effectiveness with respect to 1
overburdened and underrepresented communities, in accordance with 2
section 28 of this act;3
(b) The results and effectiveness of the authority's development 4
and implementation of a data integration platform to support recovery 5
navigator programs and to serve as a common database available for 6
diversion efforts across the state, including the results and 7
effectiveness with respect to overburdened and underrepresented 8
communities, as provided in section 22 of this act;9
(c) The effectiveness and outcomes of training developed and 10
provided by the authority in consultation with the department of 11
children, youth, and families, as provided in section 20 of this act; 12
and13
(d) The effectiveness and outcomes of training developed by the 14
authority for housing providers, as provided in section 17(4) of this 15
act.16
Part XIV - Public Defense Consultation and Representation for 17
Indigent Adults18
NEW SECTION. Sec. 39. A new section is added to chapter 2.70 19
RCW to read as follows:20
(1) Subject to amounts appropriated for this specific purpose, 21
the office of public defense may provide reimbursement of eligible 22
expenses or contract directly with indigent defense providers for 23
consultation and representation services for indigent adults facing 24
pending charges or charged with violations of RCW 69.50.4011(1) (b) 25
or (c), 69.50.4013, 69.50.4014, or 69.41.030(2) (b) or (c), or 26
charged with offenses involving allegations of possession or public 27
use of a controlled substance, counterfeit substance, or legend drug, 28
in courts of limited jurisdiction in counties with a population of 29
500,000 or less and cities with a population of 200,000 or less. The 30
county or city may enter into an agreement with the office of public 31
defense for reimbursement of eligible expenses or designate the 32
office of public defense to contract directly with indigent defense 33
providers for consultation and representation services in their 34
jurisdiction.35
(2) Nothing in this section creates an entitlement to counsel at 36
state expense or a right by counties or cities for the provision of 37
p. 47 2E2SSB 5536.SLPage 116 of 236
services by the office of public defense that would exceed the 1
amounts appropriated for this specific purpose.2
Part XV - Miscellaneous Provisions3
NEW SECTION. Sec. 40. Section 6 of this act takes effect 4
January 1, 2025.5
Sec. 41. 2021 c 311 s 29 (uncodified) is amended to read as 6
follows:7
Sections 8 through 10((,)) and 12((, 15, and 16)) of this act 8
expire July 1, 2023.9
NEW SECTION. Sec. 42. Sections 1 through 5, 7 through 11, and 10
41 of this act are necessary for the immediate preservation of the 11
public peace, health, or safety, or support of the state government 12
and its existing public institutions, and take effect July 1, 2023.13
NEW SECTION. Sec. 43. If any provision of this act or its 14
application to any person or circumstance is held invalid, the 15
remainder of the act or the application of the provision to other 16
persons or circumstances is not affected.17
Passed by the Senate May 16, 2023.
Passed by the House May 16, 2023.
Approved by the Governor May 16, 2023.
Filed in Office of Secretary of State May 17, 2023.
--- END ---
p. 48 2E2SSB 5536.SLPage 117 of 236
AGENDA REPORT
FOR: City Council July 19, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Richa Sigdel, Deputy City Manager
City Manager
SUBJECT: Resolution - Amendment No. 1 to the Prosecutorial Services Agreement
with Rio Foltz, PLLC
I. REFERENCE(S):
Resolution
Prosecutorial Services Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Current
Year
(Jul 2023-
Jun 2024)
In Total
(2020-2024)
Original PSA $254,682.00 $944,164.00
Amendment No. 1 (proposed) $167,556.00 $167,556.00
New Total $422,238.00 $1,111,720.00
The current agreement is for the term from July 1, 2020, to June 30, 2024.
Thereafter, this agreement will automatically continue until either party provides
60 days’ notice of termination. The contract rate of pay will increase annually by
3% starting on July 1, 2024. Said 3% increase shall remain in place until such
time as a successor agreement is negotiated between the parties.
IV. HISTORY AND FACTS BRIEF:
Per the Pasco Municipal Code (PMC) Section 2.20.010, the City Manager shall
secure legal services for the prosecution of misdemeanor, gross misdemeanor,
and civil infraction cases on behalf of the City. The City has contracted with
private attorneys for municipal misdemeanor, gross misdemeanor, and civil
Page 118 of 236
infraction prosecution services since 2002. Each agreement has typically been
for a two-year term and more recently a four-year term.
Bell, Brown, and Rio, PLLC have provided the City Municipal prosecution
services since 2009. Bell, Brown & Rio, PLLC's name has changed to Rio Foltz,
PLLC.
It has become increasingly more difficult to hire attorneys. This issue will be
exacerbated with the passing of SB 5536, which transfers the responsibility of
prosecuting drug possession cases from felony prosecutors to municipal and
district court prosecutors. With this in mind Rio Foltz, PLLC requested an
increase in their contract, so they are able to attract experienced attorneys.
V. DISCUSSION:
In order to hire qualified attorneys able to meet required standards and caseload,
the by contract Foltz, Rio to PLLC an proposing is staff City increase
$167,556.00 until the end of the contract on June 1, 2024. The agreement will
then automatically continue with a 3% increase annually. Amendment No. 1 is
established as not to exceed agreement.
All other provisions of the proposed agreement are unchanged.
City to Amendment proposed the recommends approval staff the of
Prosecutorial Services Agreement with Rio Foltz, PLLC.
Page 119 of 236
Resolution - Amendment to Prosecuting Attorney Agreement - 1
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE
AMENDMENT NO. 1 FOR PROSECUTORIAL SERVICES FOR THE CITY
WITH RIO FOLTZ, PLLC.
WHEREAS, the City of Pasco (City) and Bell, Brown & Rio, PLLC entered into a
Processional Services Agreement on July 23, 2020, to provide prosecutorial services for the City;
and
WHEREAS, Bell, Brown & Rio, PLLC name changed to Brown & Rio, PLLC in 2021,
when Mr. Bell left the practice to accept a judicial appointment; and
WHEREAS, Brown & Rio, PLLC name changed again in March 2023 to Rio Foltz, PLLC,
after Mr. Brown left the practice to pursue judicial opportunities and Ms. Foltz joined the practice;
and
WHEREAS, the current climate for hiring attorneys is extremely difficult. It is expected
the impact of this reality will be exacerbated by the passage of the Washington State Senate Bill
5536 (SB5536), which transfers the onus of prosecuting drug possession cases from felony
prosecutors to municipal and district court prosecutors; and;
WHEREAS, currently a minimum of one and a half prosecutors is needed to effectively
service the City’s prosecutorial contract. That number is expected to increase when SB5336
becomes effective this summer to at least two full-time prosecutors; and
WHEREAS, the combination of the shortage of attorneys and inflation in general has
made it difficult to compete with other agencies to attract qualified prosecutors; and
WHEREAS, Amendment No. 1 to the Agreement for Prosecutorial Services is proposed
to amend that agreement consistent with staff’s discussion with the Prosecutor as detailed in the
Amendment.
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 Amendment No. 1 to the Prosecutorial Services Agreement with
Rio Foltz, PLLC on behalf of the City of Pasco; and further, to authorize the City Manager to make
minor substantive changes as necessary to execute the Amendment, attached hereto as Exhibit A.
Be It Further Resolved, that this Resolution shall take effect and be in full force
immediately upon passage by the City Council.
Page 120 of 236
Resolution - Amendment to Prosecuting Attorney Agreement - 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 121 of 236
Amendment No. 1 to Agreement for Prosecutorial Services
Rio Foltz, PLLC - 1
AMENDMENT NUMBER 1
AGREEMENT FOR PROSECUTORIAL SERVICES
RIO FOLTZ, PLLC
BY THIS AMENDMENT NO. 1, entered into this _____ day of July 2023, between the
City of Pasco, Washington (hereinafter “City”) and Rio Foltz, PLLC (hereinafter “Prosecutor”)
WHEREAS, Prosecutor is a licensed Attorney in good standing in the State of Washington
who has been selected to perform prosecutorial services under contract with the City; and
WHEREAS, Bell, Brown & Rio, PLLC name changed to Brown & Rio, PLLC in 2021,
when Mr. Bell left the practice to accept a judicial appointment; and
WHEREAS, Brown & Rio, PLLC name changed again in March 2023 to Rio Foltz, PLLC,
after Mr. Brown left the practice to pursue judicial opportunities and semi-retire and Ms. Foltz
joined the practice; and
WHEREAS, the current climate for hiring attorneys is extremely difficult. The impact of
this reality will be exacerbated by the recent passage of Washington State Senate Bill 5536
(SB5536), which transfers the onus of prosecuting drug possession cases from felony prosecutors
to municipal and district court prosecutors; and
WHEREAS, currently a minimum of one and a half prosecutors is needed to effectively
service the City’s prosecutorial contract. That number is expected to increase when SB5336
becomes effective this summer to at least two full-time prosecutors; and
WHEREAS, the combination of the shortage of attorneys and inflation in general has
made it difficult to compete with other agencies to attract qualified prosecutors; and
WHEREAS, this Amendment to the Agreement for Prosecutorial Services is proposed to
be amended consistent with staff’s discussion with the Prosecutor as detailed below; and
WHEREAS, the City Council after being made fully aware of the facts and after careful
consideration of this issue has agreed to provide additional compensation, as provided in this
Amendment, to account for the passage of SB5536, general inflation, and the shortage of attorneys.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
CONTAINED HEREIN, it is agreed as follow:
Section 1. That Section 2.B shall be and hereby is amended and shall read as follows:
B. The City shall pay to the Prosecutor a base amount of Thirty-Five Thousand
Five Hundred Dollars ($35,500.00) per month. Payments shall be due on
or before the 10th day following each calendar month. Payments shall be
prorated for a partial month. Renegotiation of the terms of this agreement
EXHIBIT A
Page 122 of 236
Amendment No. 1 to Agreement for Prosecutorial Services
Rio Foltz, PLLC - 2
upon the following occurrences: (1) there is a Washington Court Rule
amendment that results in a procedural change in court proceedings, of (2)
there is a change in Court Docket/Schedule as outlined in Exhibit “A.” In
addition, Prosecutors shall be paid the sum of Seven Hundred Fifty Dollars
($750) for each case appealed (except for any case noted for reconsideration
at the trial court level). However, if a court of appeals grants the
Prosecutor’s motion to dismiss for “Want of Prosecution,” then there shall
be no charge to the City for the appeal. Prosecutors shall provide an invoice
to Pasco upon completion of any appeal work.
Section 2. That Section 3 entitled “Term” shall be and hereby is amended and shall read
as follows:
3. TERM.
The Term of this Agreement shall commence on the ____ day of ________,
2023. Thereafter, this agreement will automatically continue until either
party provides 60 days’ notice of termination. The contract rate of pay will
increase annually by 3% starting July 1, 2024. Said 3% increase shall
remain in place until such time as a successor agreement is negotiated
between the parties.
Section 3. All remaining terms and conditions not inconsistent herewith shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement on the ___ day of
_______, 2023.
CITY OF PASCO: CONSULTANT NAME:
Adam Lincoln, City Manager Michael J Rio, Attorney at Law
Rio Foltz, PLLC
Page 123 of 236
Amendment No. 1 to Agreement for Prosecutorial Services
Rio Foltz, PLLC - 1
AMENDMENT NUMBER 1
AGREEMENT FOR PROSECUTORIAL SERVICES
RIO FOLTZ, PLLC
BY THIS AMENDMENT NO. 1, entered into this _____ day of July 2023, between the
City of Pasco, Washington (hereinafter “City”) and Rio Foltz, PLLC (hereinafter “Prosecutor”)
WHEREAS, Prosecutor is a licensed Attorney in good standing in the State of Washington
who has been selected to perform prosecutorial services under contract with the City; and
WHEREAS, Bell, Brown & Rio, PLLC name changed to Brown & Rio, PLLC in 2021,
when Mr. Bell left the practice to accept a judicial appointment; and
WHEREAS, Brown & Rio, PLLC name changed again in March 2023 to Rio Foltz, PLLC,
after Mr. Brown left the practice to pursue judicial opportunities and semi-retire and Ms. Foltz
joined the practice; and
WHEREAS, the current climate for hiring attorneys is extremely difficult. The impact of
this reality will be exacerbated by the recent passage of Washington State Senate Bill 5536
(SB5536), which transfers the onus of prosecuting drug possession cases from felony prosecutors
to municipal and district court prosecutors; and
WHEREAS, currently a minimum of one and a half prosecutors is needed to effectively
service the City’s prosecutorial contract. That number is expected to increase when SB5336
becomes effective this summer to at least two full-time prosecutors; and
WHEREAS, the combination of the shortage of attorneys and inflation in general has
made it difficult to compete with other agencies to attract qualified prosecutors; and
WHEREAS, this Amendment to the Agreement for Prosecutorial Services is proposed to
be amended consistent with staff’s discussion with the Prosecutor as detailed below; and
WHEREAS, the City Council after being made fully aware of the facts and after careful
consideration of this issue has agreed to provide additional compensation, as provided in this
Amendment, to account for the passage of SB5536, general inflation, and the shortage of attorneys.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
CONTAINED HEREIN, it is agreed as follow:
Section 1. That Section 2.B shall be and hereby is amended and shall read as follows:
B. The City shall pay to the Prosecutor a base amount of Thirty-Five Thousand
Five Hundred Dollars ($35,500.00) per month. Payments shall be due on
or before the 10th day following each calendar month. Payments shall be
prorated for a partial month. Renegotiation of the terms of this agreement
Page 124 of 236
Amendment No. 1 to Agreement for Prosecutorial Services
Rio Foltz, PLLC - 2
upon the following occurrences: (1) there is a Washington Court Rule
amendment that results in a procedural change in court proceedings, of (2)
there is a change in Court Docket/Schedule as outlined in Exhibit “A.” In
addition, Prosecutors shall be paid the sum of Seven Hundred Fifty Dollars
($750) for each case appealed (except for any case noted for reconsideration
at the trial court level). However, if a court of appeals grants the
Prosecutor’s motion to dismiss for “Want of Prosecution,” then there shall
be no charge to the City for the appeal. Prosecutors shall provide an invoice
to Pasco upon completion of any appeal work.
Section 2. That Section 3 entitled “Term” shall be and hereby is amended and shall read
as follows:
3. TERM.
The Term of this Agreement shall commence on the ____ day of ________,
2023. Thereafter, this agreement will automatically continue until either
party provides 60 days’ notice of termination. The contract rate of pay will
increase annually by 3% starting July 1, 2024. Said 3% increase shall
remain in place until such time as a successor agreement is negotiated
between the parties.
Section 3. All remaining terms and conditions not inconsistent herewith shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement on the ___ day of
_______, 2023.
CITY OF PASCO: CONSULTANT NAME:
Adam Lincoln, City Manager Michael J Rio, Attorney at Law
Rio Foltz, PLLC
Page 125 of 236
Resolution - Amendment to Prosecuting Attorney Agreement - 1
RESOLUTION NO. _______
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE
AMENDMENT NO. 1 FOR PROSECUTORIAL SERVICES FOR THE CITY
WITH RIO FOLTZ, PLLC.
WHEREAS, the City of Pasco (City) and Bell, Brown & Rio, PLLC entered into a
Processional Services Agreement on July 23, 2020, to provide prosecutorial services for the City;
and
WHEREAS, Bell, Brown & Rio, PLLC name changed to Brown & Rio, PLLC in 2021,
when Mr. Bell left the practice to accept a judicial appointment; and
WHEREAS, Brown & Rio, PLLC name changed again in March 2023 to Rio Foltz, PLLC,
after Mr. Brown left the practice to pursue judicial opportunities and Ms. Foltz joined the practice;
and
WHEREAS, the current climate for hiring attorneys is extremely difficult. It is expected
the impact of this reality will be exacerbated by the passage of the Washington State Senate Bill
5536 (SB5536), which transfers the onus of prosecuting drug possession cases from felony
prosecutors to municipal and district court prosecutors; and;
WHEREAS, currently a minimum of one and a half prosecutors is needed to effectively
service the City’s prosecutorial contract. That number is expected to increase when SB5336
becomes effective this summer to at least two full-time prosecutors; and
WHEREAS, the combination of the shortage of attorneys and inflation in general has
made it difficult to compete with other agencies to attract qualified prosecutors; and
WHEREAS, Amendment No. 1 to the Agreement for Prosecutorial Services is proposed
to amend that agreement consistent with staff’s discussion with the Prosecutor as detailed in the
Amendment.
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 Amendment No. 1 to the Prosecutorial Services Agreement with
Rio Foltz, PLLC on behalf of the City of Pasco; and further, to authorize the City Manager to make
minor substantive changes as necessary to execute the Amendment, attached hereto as Exhibit A.
Be It Further Resolved, that this Resolution shall take effect and be in full force
immediately upon passage by the City Council.
Page 126 of 236
Resolution - Amendment to Prosecuting Attorney Agreement - 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 127 of 236
Pasco City Council Meeting
July 24, 2023Page 128 of 236
Background
•Pasco Municipal Code Section 2.20.010 –The City Manager shall
secure legal Services for prosecutorial services.
•Bell, Brown and Rio PLLC, now known as Rio Foltz PLLC, has
been provide prosecutorial services since 2009.
•Current Agreement ends on June 30,2024. It will automatically
continue until either party provides a 60 days’ notice of
termination. Page 129 of 236
Challenges
•In recent years it has become more difficult to hire and retain attorneys.
•Senate Bill 5536, also known as the Blake Fix, which transfers the responsibility of prosecuting drug possession cases from felony prosecutors to municipal and district court prosecutors.
•Currently Rio Foltz needs a minimum of one and a half prosecutors.
•With the passing of Senate Bill 5536 it is estimated to increase to two full-time prosecutors.Page 130 of 236
Amendment No. 01 to Agreement for
Prosecutorial Services
Current Year
(Jul 2023-Jun
2024)
In Total (2020-
2024)
Original PSA $254,682 $944,164
Amendment No. 1 (proposed)$167,556 $167,556
New Total $422,238 $1,111,720
•Rate increase of 65% accounting additional resources, inflation, and recruitment challenges.
•The contract rate will increase annually by 3% starting on July 1, 2024. Page 131 of 236
Pasco City Council Meeting
July 24, 2023Page 132 of 236
AGENDA REPORT
FOR: City Council July 19, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Darcy Buckley, Finance Director
Finance
SUBJECT: Introduction of Bond Ordinances
I. REFERENCE(S):
Proposed Ordinances
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Upon issuance:
New Limited Tax General Obligation Bond (LTGO) not to exceed $14M with
estimated average annual debt service of $1.1M.
New Revenue and Refunding Bond not to exceed $38M with estimated
average annual debt service of $2.53M. Included in proceeds of the new
Revenue Bond is sufficient funding to refund (refinance) outstanding 2013
Revenue Bonds.
IV. HISTORY AND FACTS BRIEF:
Each year the City of Pasco completes a Capital Improvement Plan (CIP). The
CIP serves to inform capital project timing and source of funding. Additionally,
information included in the CIP educates creation of the City's capital budget.
The 2023-2024 biennial budget included the impact of a debt issuance to support
Fire Station 85 and all proposed utilities projects, with the exclusion of the
Broadmoor Area utility improvements.
Page 133 of 236
During the 2019 Limited Tax General Obligation Bond issuance, projects for the
Animal Shelter Facility and Gesa Stadium Improvements were included in as
priorities. The scope of necessary improvements to Gesa Stadium as required
to meet league standards has expanded since 2019.
V. DISCUSSION:
Based on budgetary planning and CIP strategy, debt issuance was anticipated
in 2023. Both general government type projects and capital improvements in the
utilities were planned for 2023 initiation, with near term completion, by way of
support of planned debt issuance in 2023.
As debt issuance is highly specialized and regulated, the City engages a "finance
team" composed of financial advisors, underwriters and bond counsel to partner
with City staff. The initial planning meeting for debt issuance commenced at the
end of February 2023.
Based on work completed since that kick off meeting, Staff is presenting the
bonding plan for the issuance of Limited Tax General Obligation Bonds (LTGO)
and Revenue and Refunding Bonds. LTGO Bonds, also called councilmanic
bonds or non-voted debt, may be issued by the legislative body of a municipal
entity. Because voters have not been asked to approve additional taxes to
support the debt service (principal and interest) payments necessary to repay
the debt, General Fund revenues must be used to pay the debt service. Annual
debt service for utilities is a component of rate setting for the utilities. A rate
analysis was completed in 2021. As customary with rate analysis, capital
projects and debt service is considered when planning rate increases. Rate
increases are planned through 2026 for the Water and Sewer utilities. An
Irrigation rate analysis is nearly complete. Stormwater Rate Study is budgeted
for the 2023-2024 time frame.
In analyzing this debt issuance, staff has cautiously and thoroug hly evaluated
project needs. The projects included in the LTGO Bond are Fire Station No. 85,
improvement/rehabilitation of an Animal Control Annex, Gesa Stadium
Improvements and Memorial Pool Improvements. As noted above, two projects,
Gesa Stadium and Animal Shelter Facility, were included in the 2019 LTGO
issuance. Completion of both projects was delayed by the COVID -19 pandemic
through disruptions in contractor accessibility and supply chain disruptions. Also,
negatively influencing project cost is the residual COVID-19 impact of inflationary
prices. Further, the expanded scope of necessary and timely improvements for
Gesa Stadium have contributed to making this project a priority. Improvements
to the Memorial Pool Complex were not budgeted in the 2023 -2024 Biennial
Budget, rather planned in CIP starting in 2025. However, as pool bubble
installation nears, careful assessment of the project has emphasized that to
successfully support year-around pool area use, which is the benefit of the
Page 134 of 236
bubble, making phase one improvements in concert with bubble installation is
necessary.
The Revenue and Refunding Bond proceeds cover improvements that benefit
all utilities. For the most part, the improvements will serve to increase service
capacity for the benefit of existing and new rate payers. Of the issuance,
approximately $6.1M in project value supports utilities improvements in the
Broadmoor Area.
At tonight's meeting, a review of proposed projects for bonding, the associated
anticipated annual debt service and related budgetary impacts will be presented.
Page 135 of 236
FG Draft 7/19/2023
FG: 101442482.5
CITY OF PASCO, WASHINGTON
ORDINANCE NO. ____
AN ORDINANCE relating to the waterworks utility of the City; specifying,
adopting and ordering the carrying out of a system or plan of additions to and
betterments and extensions of the waterworks utility; providing for the issuance,
sale and delivery of not to exceed $38,000,000 aggregate principal amount of water
and sewer improvement and refunding revenue bonds to provide funds to (a) pay
or reimburse all or a portion of the costs of carrying out the plan of additions, (b)
refund and redeem outstanding water and sewer revenue bonds of the City, and (c)
pay the costs of issuance and sale of the bonds and the administrative costs of the
refunding; fixing or setting parameters with respect to certain terms and covenants
of the bonds; appointing the City’s designated representative to approve the final
terms of the sale of the bonds; and providing for related matters.
Passed: August 7, 2023
This document prepared by:
Foster Garvey P.C.
1111 Third Avenue, Suite 3000
Seattle, Washington 98101
(206) 447-4400
Page 136 of 236
-i-
FG: 101442482.5
TABLE OF CONTENTS*
Page
Section 1. Definitions................................................................................................................1
Section 2. Findings and Determinations ...................................................................................9
Section 3. Plan of Additions ...................................................................................................10
Section 4. Authorization of the Bonds ....................................................................................11
Section 5. Appointment of Designated Representative; Description of the Bonds ................12
Section 6. Bond Registrar; Registration and Transfer of Bonds .............................................12
Section 7. Form and Execution of Bonds. ..............................................................................13
Section 8. Payment of Bonds ..................................................................................................13
Section 9. Redemption Provisions and Purchase of Bonds ....................................................14
Section 10. Failure to Pay Bonds ..............................................................................................15
Section 11. Bond Fund; Payments into Bond Fund ..................................................................15
Section 12. Rate Stabilization Account ....................................................................................17
Section 13. Pledge, Lien and Charge for Payment of the Bonds ..............................................17
Section 14. Flow of Funds ........................................................................................................17
Section 15. Covenants ...............................................................................................................18
Section 16. Provisions for Future Parity Bonds ........................................................................19
Section 17. Separate Utility Systems. .......................................................................................19
Section 18. Contract Resource Obligations. .............................................................................20
Section 19. Tax Covenants. ......................................................................................................21
Section 20. Refunding or Defeasance of Bonds .......................................................................21
Section 21. Deposit of Bond Proceeds; Creation of Construction Accounts ............................22
Section 22. Use of Refunding Proceeds; the Refunding Plan ...................................................22
Section 23. Amendatory and Supplemental Ordinances...........................................................24
Section 24. Defaults and Remedies ..........................................................................................26
Section 25. Sale and Delivery of the Bonds .............................................................................29
Section 26. Official Statement; Continuing Disclosure ............................................................30
Section 27. General Authorization and Ratification .................................................................30
Section 28. Severability ............................................................................................................30
Section 29. Effective Date of Ordinance ..................................................................................31
Exhibit A Parameters for Final Terms
Exhibit B Parity Conditions
Exhibit C Form of Undertaking to Provide Continuing Disclosure
*The cover page, table of contents and section headings of this ordinance are for convenience of reference only, and
shall not be used to resolve any question of interpretation of this ordinance.
Page 137 of 236
-1-
FG: 101442482.5
CITY OF PASCO, WASHINGTON
ORDINANCE NO. ____
AN ORDINANCE relating to the waterworks utility of the City; specifying,
adopting and ordering the carrying out of a system or plan of additions to and
betterments and extensions of the waterworks utility; providing for the issuance,
sale and delivery of not to exceed $38,000,000 aggregate principal amount of water
and sewer improvement and refunding revenue bonds to provide funds to (a) pay
or reimburse all or a portion of the costs of carrying out the plan of additions, (b)
refund and redeem outstanding water and sewer revenue bonds of the City, and (c)
(d) pay the costs of issuance and sale of the bonds and the administrative costs of
the refunding; fixing or setting parameters with respect to certain terms and
covenants of the bonds; appointing the City’s designated representative to approve
the final terms of the sale of the bonds; and providing for related matters.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as
follows:
Section 1. Definitions. As used in this ordinance, the following capitalized terms have
the following meanings:
(a) “2013A Bonds” means the outstanding Water and Sewer Revenue Bonds, 2013A,
of the City issued pursuant to Ordinance No. 4126.
(b) “2013T Bonds” means the outstanding Water and Sewer Revenue Bonds, 2013T
(Taxable), of the City issued pursuant to Ordinance No. 4126.
(c) “2015 Bonds” means the outstanding Water and Sewer Improvement and
Refunding Revenue Bonds, 2015, of the City issued pursuant to Ordinance No. 4254.
(d) “2017 Bonds” means the outstanding Water and Sewer Revenue Bonds, 2017, of
the City issued pursuant to Ordinance No. 4365.
(e) “2020A Bonds” means the outstanding Water and Sewer Refunding Revenue
Bonds, 2020A (Tax-Exempt), of the City issued pursuant to Ordinance No. 4487.
(f) “2020B Bonds” means the outstanding Water and Sewer Improvement Revenue
Bonds, 2020B (Taxable), of the City issued pursuant to Ordinance No. 4487.
(g) “Acquired Obligations” means the United States Treasury Certificates of
Indebtedness, Notes, and Bonds-State and Local Government Series and/or other Government
Obligations, as identified in the Refunding Trust Agreement, purchased to carry out the Refunding
Plan.
(h) “Alternate Security” means any bond insurance, collateral, security, letter of credit,
guaranty, surety bond or similar credit enhancement device providing for or securing the payment
of all or part of the principal of and interest on any specified Parity Bonds, issued by an institution
Page 138 of 236
-2-
FG: 101442482.5
which has been assigned a credit rating at the time of issuance of the applicable Parity Bonds,
respectively, secured by such Alternate Security in the highest rating categories by both Moody’s
Investors Service, Inc., and S&P Global. When the 2013A Bonds and 2013T Bonds are no longer
outstanding “Alternate Security” shall mean any bond insurance, collateral, security, letter of
credit, guaranty, surety bond or similar credit enhancement device providing for or securing the
payment of all or part of the principal of and interest on any specified Parity Bonds, issued by an
institution which has been assigned a credit rating at the time of issuance of the applicable Parity
Bonds, respectively, secured by such Alternate Security in one of the two highest rating categories
by either Moody’s Investors Service, Inc. or S&P Global Ratings.
(i) “Annual Debt Service” for any or all Parity Bonds for any year means all the
interest, plus all principal which will mature or come due in such year, less all bond interest payable
from the proceeds of any such bonds in that year.
(j) “Assessment Bonds” means, at the time of determination, Parity Bonds then
outstanding equal to the sum of the nondelinquent unpaid principal amount of ULID Assessments
then outstanding plus any ULID Assessment payments then on deposit in the Principal and Interest
Account of the Bond Fund. Assessment Bonds shall be allocated to each remaining maturity of
Parity Bonds in the same proportion as the total of the Assessment Bonds relates to the total of the
Parity Bonds then outstanding.
(k) “Authorized Denomination” means $5,000 or any integral multiple thereof within
a maturity.
(l) “Average Annual Debt Service” means, at the time of its calculation, the sum of the
Annual Debt Service for the remaining years to the last scheduled maturity of the applicable Parity
Bonds divided by the number of those years.
(m) “Beneficial Owner” means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(n) “Bond” means each Project Bond and each Refunding Bond issued pursuant to and
for the purposes provided in this ordinance.
(o) “Bond Counsel” means the firm of Foster Garvey P.C., its successor, or any other
attorney or firm of attorneys selected by the City with a nationally recognized standing as bond
counsel in the field of municipal finance.
(p) “Bond Fund” means the Water and Sewer Revenue and Refunding Bond
Redemption Fund, 1991, of the City created and established by Ordinance No. 2846 for the
payment of the principal of and interest on the Parity Bonds.
(q) “Bond Purchase Contract” means an offer to purchase a Series of Bonds, setting
forth certain terms and conditions of the issuance, sale and delivery of those Bonds, which offer is
authorized to be accepted by the Designated Representative on behalf of the City, if consistent
with this ordinance.
Page 139 of 236
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FG: 101442482.5
(r) “Bond Register” means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of each Bond.
(s) “Bond Registrar” means the Fiscal Agent, or any successor bond registrar selected
by the City.
(t) “City” means the City of Pasco, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(u) “City Clerk” means the City Clerk of the City or the successor to the functions of
that officer.
(v) “City Contribution” means legally available money of the City, in addition to
proceeds of the Bonds, necessary or advisable to carry out the Refunding Plan, as determined by
the Designated Representative.
(w) “City Council” means the legislative authority of the City, as duly and regularly
constituted from time to time.
(x) “City Manager” means the City’s City Manager or such other officer of the City
who succeeds to substantially all of the responsibilities of that office.
(y) “Code” means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
(z) “Contract Resource Obligation” means an obligation of the City designated as a
Contract Resource Obligation in accordance with Section 18 to make payments for water supply,
sewer service, water or wastewater transmission, treatment or other utility service or commodity
to another person or entity (including without limitation any Separate Utility System).
(aa) “Construction Accounts” means such accounts created in the Water/Sewer Fund as
the Finance Director shall designate for the purpose of paying the costs of the Plan of Additions
and the costs of issuance of the Bonds.
(bb) “Coverage Requirement” in any year means an amount of Net Revenue, together
with the ULID Assessments collected in that year, equal to at least the Maximum Annual Debt
Service on all Assessment Bonds plus an amount of the Net Revenue not used to calculate the
Coverage Requirement on Assessment Bonds equal to at least 1.25 times Maximum Annual Debt
Service on all bonds payable from the Bond Fund that are not Assessment Bonds. When the 2013A
Bonds, 2013T Bonds, 2015 Bonds and 2017 Bonds are no longer outstanding “Coverage
Requirement” shall mean an amount of Net Revenue, together with the ULID Assessments
collected in that year, equal to at least Annual Debt Service on all Assessment Bonds for that year
plus an amount of the Net Revenue not used to calculate the Coverage Requirement on Assessment
Bonds equal to at least 1.25 times Annual Debt Service on all bonds payable from the Bond Fund
that are not Assessment Bonds in that year.
(cc) “DTC” means The Depository Trust Company, New York, New York, or its
nominee.
Page 140 of 236
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FG: 101442482.5
(dd) “Designated Representative” means the officer of the City appointed in Section 5
of this ordinance to serve as the City’s designated representative in accordance with
RCW 39.46.040(2).
(ee) “Final Terms” means the terms and conditions for the sale of a Series of Bonds,
including the amount, date or dates, denominations, interest rate or rates (or mechanism for
determining interest rate or rates), payment dates, final maturity, redemption rights, price, and
other terms or covenants, including minimum savings for refunding bonds (if the refunding bonds
are issued for savings purposes).
(ff) “Finance Director” means the City’s Finance Director or such other officer of the
City who succeeds to substantially all of the responsibilities of that office.
(gg) “Fiscal Agent” means the fiscal agent of the State, as the same may be designated
by the State from time to time.
(hh) “Future Parity Bonds” means any and all water and sewer revenue bonds or other
obligations of the City issued or incurred after the date of the issuance of the Bonds pursuant to
the provisions of the Parity Bond Ordinances, the payment of the principal of and interest on which
constitutes a lien and charge upon the Net Revenue and ULID Assessments on a parity with the
lien and charge upon such Net Revenue and ULID Assessments for the Outstanding Parity Bonds
and the Bonds, but shall not include variable rate obligations.
(ii) “Government Obligations” has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(jj) “Gross Revenue” means all of the earnings and revenues received by the City from
the maintenance and operation of the Waterworks Utility, all earnings from the investment of
money on deposit in the Bond Fund and, when the 2013A Bonds, 2013T Bonds, 2015 Bonds and
2017 Bonds are no longer outstanding, withdrawals from the Rate Stabilization Account, but not
including: (i) ULID Assessments, (ii) government grants, (iii) proceeds from the sale of
Waterworks Utility property, (iv) City taxes collected by or through the Waterworks Utility, (v)
principal proceeds of bonds, (vi) earnings or proceeds from any investments in a trust, defeasance
or escrow fund created to defease or refund Waterworks Utility obligations (until commingled
with other earnings and revenues of the Waterworks Utility) or held in a special account for the
purpose of paying a rebate to the United States Government under the Code or, when the 2013A
Bonds, 2013T Bonds, 2015 Bonds and 2017 Bonds are no longer outstanding, (vii) deposits to
the Rate Stabilization Account or (viii) revenues of a Separate Utility System.
(kk) “Issue Date” means, with respect to a Bond, the date of initial issuance and delivery
of that Bond to the Purchaser in exchange for the purchase price of that Bond.
(ll) “Letter of Representations” means the Blanket Issuer Letter of Representations
between the City and DTC dated August 31, 1998, as it may be amended from time to time, and
any successor or substitute letter relating to the operational procedures of the Securities
Depository.
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(mm) “Maximum Annual Debt Service” means, at the time of calculation, the maximum
amount of Annual Debt Service that will mature or come due in the current year or any future year
on the outstanding Parity Bonds.
(nn) “Mayor” means the Mayor of the City or the successor to the functions of that
office.
(oo) “MSRB” means the Municipal Securities Rulemaking Board.
(pp) “Net Revenue” means the Gross Revenue less Operating and Maintenance
Expenses.
(qq) “Official Statement” means an offering document, disclosure document, private
placement memorandum or substantially similar disclosure document provided to purchasers and
potential purchasers in connection with the initial offering of the Bonds in conformance with Rule
15c2-12 or other applicable regulations of the SEC.
(rr) “Operating and Maintenance Expenses” means all reasonable expenses incurred
by the City in causing the Waterworks Utility to be operated and maintained in good repair,
working order and condition, including payments made to any other municipal corporation or
private entity for water service and for sewage treatment and disposal service or other utility
service in the event the City combines such service in the Waterworks Utility and enters into a
contract for such service and, when the 2013A Bonds, 2013T Bonds, 2015 Bonds and 2017 Bonds
are no longer outstanding, payments made in respect of any Contract Resource Obligation, but
not including: (i) any depreciation, (ii) taxes levied or imposed by the City or payments to the City
in lieu of taxes, or (iii) capital additions or capital replacements to the Waterworks Utility.
(ss) “Outstanding Parity Bonds” means the outstanding 2013A Bonds, 2013T Bonds,
2015 Bonds, 2017 Bonds, 2020A Bonds and 2020B Bonds. Outstanding Parity Bonds do not
include any Refunded Bonds.
(tt) “Owner” means, without distinction, the Registered Owner and the Beneficial
Owner.
(uu) “Parity Bonds” means the Outstanding Parity Bonds, the Bonds and any Future
Parity Bonds.
(vv) “Parity Bond Ordinances” means Ordinance No. 4126, Ordinance No. 4254,
Ordinance No. 4365, Ordinance No. 4487 and this ordinance.
(ww) “Parity Conditions” means the conditions for issuing Future Parity Bonds set forth
in Exhibit B to this ordinance, which is incorporated herein by this reference.
(xx) “Plan of Additions” means the system or plan of additions to and betterments and
extensions of the Waterworks Utility specified, adopted and ordered to be carried out by this
ordinance and more particularly defined in Section 3.
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(yy) “Principal and Interest Account” means the account of that name created in the
Bond Fund for the payment of the principal of and interest on all Parity Bonds.
(zz) “Project Bond” means each bond issued pursuant to this ordinance for the purpose
of providing money required to carry out and accomplish the Plan of Additions, including without
limitation paying the allocable share of the costs related to the issuance, sale and delivery of such
bond and providing for the Reserve Requirement with respect to the Project Bonds.
(aaa) “Purchaser” means D.A. Davidson & Co. of Seattle, Washington, or such other
purchaser of the Bonds whose offer is accepted by the Designated Representative in accordance
with this ordinance.
(bbb) “Rate Stabilization Account” means the account of that name created in the Water
and Sewer Revenue Fund pursuant to Section 12.
(ccc) “Rating Agency” means any nationally recognized rating agency then maintaining
a rating on the Bonds at the request of the City.
(ddd) “Record Date” means the Bond Registrar’s close of business on the 15th day of the
month preceding an interest payment date. With respect to redemption of a Bond prior to its
maturity, the Record Date shall mean the Bond Registrar’s close of business on the date on which
the Bond Registrar sends the notice of redemption in accordance with Section 9.
(eee) “Redemption Date” means, with respect to each series of the Refunded Bonds, a
date or dates selected by the Designated Representative.
(fff) “Refunded Bonds” means the Refunding Candidates selected by the Designated
Representative and identified in the Refunding Plan.
(ggg) “Refunding Bond” means each bond issued pursuant to this ordinance for the
purpose of carrying out the Refunding Plan, including without limitation paying the administrative
costs of the refunding and the allocable share of costs related to the issuance, sale and delivery of
such bond and providing for the Reserve Requirement with respect to the Refunding Bonds.
(hhh) “Refunding Candidates” means: (1) the currently outstanding $1,305,000 principal
amount of the 2013A Bonds maturing on December 1 of each of the years 2024, 2026 and 2028;
and (2) the currently outstanding $3,555,000 principal amount of the 2013T Bonds maturing on
December 1 of each of the years 2023 and 2028.
(iii) “Refunding Plan” means (as further described in the Refunding Trust Agreement):
(1) the deposit with the Refunding Trustee of proceeds of the Bonds in
an amount, together with the City Contribution, sufficient to acquire the Acquired
Obligations and establish a beginning cash balance;
(2) the receipt by the Refunding Trustee of the maturing principal of
and interest on the Acquired Obligations, and the application of such amounts
(together with any other cash held by it) to pay principal of and interest on the
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Refunded Bonds when due up to and including the Redemption Date, and the call,
payment and redemption of the Refunded Bonds on the Redemption Date at a price
equal to the principal amount to be redeemed; and
(3) payment of the costs of issuing the Bonds and the costs of carrying
out the foregoing elements of the Refunding Plan, if payment of such costs is so
specified in the Refunding Trust Agreement.
(jjj) “Refunding Trust Agreement” means the refunding trust agreement between the
City and the Refunding Trustee, providing for the carrying out of the Refunding Plan.
(kkk) “Refunding Trustee” means the trustee, or any successor trustee, designated by the
Designated Representative to serve as refunding trustee to carry out the Refunding Plan.
(lll) “Registered Owner” means, with respect to a Bond, the person in whose name that
Bond is registered on the Bond Register. For so long as the City utilizes the book-entry only system
for the Bonds under the Letter of Representations, Registered Owner shall mean the Securities
Depository.
(mmm) “Reserve Account” means the account of that name created in the Bond Fund for
the purpose of securing the payment of the principal of and interest on the Parity Bonds.
(nnn) “Reserve Insurance” means, in lieu of cash and investments, any insurance obtained
by the City to fund all or a portion of the Reserve Requirement for any Parity Bonds then
outstanding for which such insurance is obtained. When the 2013A Bonds and 2013T Bonds are
no longer outstanding “Reserve Insurance” shall mean, in lieu of cash and investments, any bond
insurance, collateral, security, letter of credit, guaranty, surety bond or similar credit
enhancement device to fund, provide for or secure the payment of all or part of the Reserve
Requirement on any specified Parity Bonds, issued by an institution which has been assigned a
credit rating at the time of issuance of the applicable Parity Bonds, respectively, secured by such
Reserve Insurance in one of the two highest rating categories by either Moody’s Investors Service,
Inc. or S&P Global Ratings.
(ooo) “Reserve Requirement” means:
(1) For the Outstanding Parity Bonds and the Bonds, an amount equal to the
least of (a) 10% of the issue price of the then-outstanding Parity Bonds, (b) Maximum
Annual Debt Service on the then-outstanding Parity Bonds and (c) 1.25 times Average
Annual Debt Service on the then-outstanding Parity Bonds. For the purposes of
determining Maximum Annual Debt Service and Average Annual Debt Service for
calculating the Reserve Requirement, all bonds payable or proposed to be paid from the
Bond Fund shall be treated as a single issue and the number of years to the last scheduled
maturity for any of those issues shall be used as the denominator. When the 2013A Bonds
and the 2013T Bonds are no longer outstanding, the Reserve Requirement for the 2020A
Bonds and the 2020B Bonds shall be reduced to zero and the Reserve Requirement for the
Bonds shall be zero.
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FG: 101442482.5
(2) For any Future Parity Bonds secured by the Reserve Account, the amount,
if any, designated as such pursuant to the ordinance authorizing the issuance of such Future
Parity Bonds, which amount shall not exceed, as of the date of calculation, the difference
between the Reserve Requirement for the then-outstanding Parity Bonds secured by the
Reserve Account and the least of (a) 10% of the issue price of the then-outstanding Parity
Bonds secured by the Reserve Account and the Future Parity Bonds proposed to be issued,
(b) Maximum Annual Debt Service on the then-outstanding Parity Bonds secured by the
Reserve Account and the Future Parity Bonds proposed to be issued and (c) 1.25 times
Average Annual Debt Service on the then-outstanding Parity Bonds secured by the Reserve
Account and the Future Parity Bonds proposed to be issued, but in no event to exceed an
amount equal to the least of 10% of the issue price of the proposed Future Parity Bonds,
Maximum Annual Debt Service on those bonds and 1.25 times Average Annual Debt
Service on the proposed bonds. For the purposes of determining Maximum Annual Debt
Service and Average Annual Debt Service for calculating the Reserve Requirement, all
bonds payable or proposed to be paid from the Bond Fund secured by the Reserve Account
shall be treated as a single issue and the number of years to the last scheduled maturity for
any of those issues shall be used as the denominator.
(ppp) “Rule 15c2-12” means Rule 15c2-12 promulgated by the SEC under the Securities
Exchange Act of 1934, as amended.
(qqq) “SEC” means the United States Securities and Exchange Commission.
(rrr) “Securities Depository” means DTC, any successor thereto, any substitute
securities depository selected by the City that is qualified under applicable laws and regulations to
provide the services proposed to be provided by it, or the nominee of any of the foregoing.
(sss) “Series of Bonds” or “Series” means a series of the Bonds issued pursuant to this
ordinance.
(ttt) “Separate Utility System” means any water supply, sewer service, water or
wastewater transmission, treatment or other utility service, commodity or facilities that may be
created, acquired or constructed by the City as provided in Section 17.
(uuu) “State” means the State of Washington.
(vvv) “System of Registration” means the system of registration for the City’s bonds and
other obligations set forth in Ordinance No. 2845.
(www) “Taxable Series” means any Series of Bonds issued as taxable bonds as determined
by the Designated Representative pursuant to the parameters for Final Terms set forth in Exhibit A
and identified in the Bond Purchase Contract for such Series of Bonds.
(xxx) “Tax-Exempt Series” means any Series of Bonds issued as tax-exempt bonds as
determined by the Designated Representative pursuant to the parameters for Final Terms set forth
in Exhibit A and identified in the Bond Purchase Contract for such Series of Bonds.
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(yyy) “Term Bonds” means each Bond designated as a Term Bond and subject to
mandatory redemption in the years and amounts set forth in the Bond Purchase Contract. For any
Outstanding Parity Bonds or Future Parity Bonds, “Term Bonds” means those bonds of any single
issue or series designated as Term Bonds pursuant to the ordinance authorizing their issuance or
sale and which are subject to mandatory prior redemption or for which mandatory sinking fund
installments are provided.
(zzz) “ULID” means utility local improvement district.
(aaaa) “ULID Assessments” means all ULID assessments and installments thereof, plus
interest and penalties thereon, in any ULID created to secure the payment of any Parity Bonds and
pledged to be paid into the Bond Fund.
(bbbb) “Undertaking” means the undertaking to provide continuing disclosure entered into
pursuant to Section 26(c) of this ordinance.
(cccc) “Water and Sewer Revenue Fund” means that special fund of the City into which
all of the Gross Revenue shall be deposited.
(dddd) “Waterworks Utility” means the combined sewerage system and water system of
the City, together with the storm and surface water system, the irrigation water system and the
agricultural/industrial wastewater treatment facilities heretofore or hereafter authorized to be
constructed and installed as a part of such combined systems, and together with all additions
thereto and betterments and extensions thereof now or hereafter made.
Section 2. Findings and Determinations. The City takes note of the following facts and
makes the following findings and determinations:
(a) Background. The City, by Ordinance No. 531, passed March 7, 1944, provided that
the system of sewerage of the City, including all additions, extensions and betterments thereto,
should be operated as a part of and as belonging to the Waterworks Utility pursuant to the
provisions of Chapter 193 of the Laws of 1941 of the State of Washington (RCW 35.67.320 et
seq.).
(b) Plan of Additions. The City has determined that it is necessary and in the best
interests of the City to carry out the Plan of Additions.
(c) Outstanding Parity Bonds. Pursuant to Ordinance No. 2846, the City heretofore
issued and sold its 1991 Bonds (all of which have been paid and retired), and reserved the right to
issue additional water and sewer revenue bonds of the City which would have a lien and charge
upon the Net Revenue and ULID Assessments on a parity with those 1991 Bonds if the Parity
Conditions are met. The City currently has outstanding the following water and sewer revenue
bonds issued on a parity of lien and charge on the Net Revenue and ULID Assessments with the
1991 Bonds:
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Name of Issue
Original
Principal
Amount
Dated
Date
Authorizing
Ordinance
Ordinance
Passage
Date
2013A Bonds $ 2,520,000 12/05/2013 4126 11/18/2013
2013T Bonds 7,235,000 12/05/2013 4126 11/18/2013
2015 Bonds 14,380,000 12/22/2015 4254 11/30/2015
2017 Bonds 9,415,000 12/19/2017 4365 11/20/2017
2020A Bonds 7,315,000 6/01/2020 4487 4/06/2020
2020B Bonds 16,415,000 6/01/2020 4487 4/06/2020
(d) Parity Conditions Met. The City Council finds and declares that (1) all payments
required by the Outstanding Parity Bonds are provided for in this ordinance or have been provided
for or made into the Bond Fund for those outstanding bonds and that no deficiency exists in such
fund; (2) provision is hereinafter made for the deposit in the Reserve Account of the Bond Fund
of the Reserve Requirement for the Bonds; and (3) that all other conditions set forth in the Parity
Conditions will have been met and satisfied before the Bonds are delivered to the initial purchaser.
(e) Refunding Candidates. The City Council finds and determines that it is necessary
and in the best interest of the City and its ratepayers to defease and refund the Refunding
Candidates pursuant to the Refunding Plan and Chapter 39.53 RCW and other laws of the State in
order to modify debt service and reserve requirements, covenants and other terms relating to Parity
Bonds.
(f) Sufficiency of Gross Revenue; Due Regard. The City Council finds and determines
that the Gross Revenue will be more than sufficient to (1) meet all Operating and Maintenance
Expenses thereof (and the cost of maintenance and operation as contemplated by RCW 35.92.100),
and the debt service requirements of the Outstanding Parity Bonds and other revenue obligations
in respect of the Waterworks Utility, and (2) permit the setting aside into the Bond Fund out of the
Net Revenue of amounts sufficient to pay the principal of and interest on the Bonds when due. The
City Council declares that in creating the Bond Fund and in fixing the amounts to be paid into that
fund, it has exercised due regard for Operating and Maintenance Expenses (and the cost of
maintenance and operation contemplated by RCW 35.92.100) and the debt service requirements
of the Outstanding Parity Bonds and other revenue obligations in respect of the Waterworks
Utility, and the City has not bound or obligated itself to set aside and pay into the Bond Fund a
greater amount or proportion of the Gross Revenue than in the judgment of the City Council will
be available over and above such Operating and Maintenance Expenses and debt service
requirements of the Outstanding Parity Bonds and other revenue obligations in respect of the
Waterworks Utility.
(g) Issuance of Bonds. Based on the foregoing, the City Council finds that it is in the
best interest of the City to issue and sell the Bonds to the Purchaser, pursuant to the terms set forth
in the Bond Purchase Contract as approved by the Designated Representative consistent with this
ordinance.
Section 3. Plan of Additions. The City specifies, adopts and orders the carrying out of
a system or plan of additions to and betterments and extensions of the Waterworks Utility included
and described in the City’s 2019-2024 Capital Improvement Plan, 2020-2025 Capital
Improvement Plan and prior Capital Improvement Plans and other comprehensive, master and/or
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FG: 101442482.5
financing improvement plans of the City, which additionally include without limitation the
following improvements (collectively, the “Plan of Additions”):
(a) Water system, irrigation system, and stormwater system infrastructure in the
Broadmoor Area of the City.
(b) Water system Reservoir Storage Tank – Zone 3, including design and construction
of the new 3.5 million gallon water storage tank.
(c) Irrigation system well capacity upgrades, including refurbishing existing wells to
optimize water production in the system.
(d) Irrigation system Broadmoor Pump Station (NW Irrigation System), including
design and construction of an irrigation pump station to provide service to new development.
(e) Stormwater system improvements, including replacing aging infrastructure in
stormwater conveyance system.
(f) Process Water Reuse Facility improvements, including farm irrigation system and
potable water and electrical upgrades.
There shall be included in the foregoing system or plan the acquisition and installation of
all necessary valves, pumps, fittings, couplings, connections, equipment and appurtenances, and
replacements and improvements necessary or desirable to maintain or increase the effectiveness
of the service provided by such facilities, other improvements to and extensions of the Waterworks
Utility, the acquisition of any easements, rights-of-way and land that may be required and the
performance of such work as may be incidental and necessary.
All of the foregoing shall be in accordance with the plans and specifications therefor
prepared by the staff and consulting engineers of the City.
The City Council may modify the details of the Plan of Additions where, in its judgment,
it appears advisable if such modifications do not substantially alter the purposes of the Plan of
Additions.
The estimated cost of the acquisition, construction, installation and financing of the above-
described improvements to be paid from the proceeds of the Bonds is declared to be approximately
$31,570,000. Any excess proceeds of the Project Bonds remaining following payment of the costs
of the Plan of Additions may be applied to costs of other improvements to the Waterworks Utility
heretofore or hereafter approved in the City’s Capital Budget.
Section 4. Authorization of the Bonds. The City is authorized to issue, sell and deliver
water and sewer improvement and refunding revenue bonds in one or more Series for the purpose
of providing funds necessary to (a) pay costs of carrying out the Plan of Additions, (b) carry out
the Refunding Plan; (c) make a deposit to the Reserve Account as needed to satisfy the Reserve
Requirement and (d) pay the costs of issuance and sale of the Bonds.
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FG: 101442482.5
Section 5. Appointment of Designated Representative; Description of the Bonds. The
City Manager and the Finance Director each are appointed as the Designated Representative of the
City and each of them acting alone is authorized and directed to conduct the sale of the Bonds in
the manner and upon the terms deemed most advantageous to the City, and to approve the Final
Terms of the Bonds, with such additional terms and covenants as the Designated Representative
deems advisable, within the parameters set forth in Exhibit A, which is attached to this ordinance
and incorporated by this reference.
Section 6. Bond Registrar; Registration and Transfer of Bonds.
(a) Registration of Bonds; Bond Register. Each Bond shall be issued only in registered
form as to both principal and interest, and the ownership of each Bond shall be recorded on the
Bond Register. The Bond Register shall contain the name and mailing address of each Registered
Owner and the principal amount and number of each Bond held by each Registered Owner.
(b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar.
The Bond Registrar shall keep, or cause to be kept, the Bond Register, which shall be open to
inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the
Bonds and this ordinance, to serve as the City’s paying agent for the Bonds and to carry out all of
the Bond Registrar’s powers and duties under this ordinance and the System of Registration. The
Bond Registrar shall be responsible for its representations contained in the Bond Registrar’s
Certificate of Authentication on each Bond. The Bond Registrar may become an Owner with the
same rights it would have if it were not the Bond Registrar and, to the extent permitted by law,
may act as depository for and permit any of its officers or directors to act as members of, or in any
other capacity with respect to, any committee formed to protect the rights of Owners.
(c) Transfer or Exchange. A Bond surrendered to the Bond Registrar may be
exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal
amount and of the same Series, interest rate and maturity. A Bond may be transferred only if
endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or
transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be obligated
to exchange any Bond or transfer registered ownership during the period between the applicable
Record Date and the next upcoming interest payment or redemption date.
(d) Securities Depository; Book-Entry Only Form. DTC is appointed as initial
Securities Depository. Each Bond initially shall be registered in the name of Cede & Co., as the
nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held fully
immobilized in book-entry only form by the Securities Depository in accordance with the
provisions of the Letter of Representations. Registered ownership of any Bond registered in the
name of the Securities Depository may not be transferred except: (i) to any successor Securities
Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any person
if the Bond is no longer to be held in book-entry only form. Upon the resignation of the Securities
Depository, or upon a termination of the services of the Securities Depository by the City, the City
may appoint a substitute Securities Depository. If (i) the Securities Depository resigns and the City
does not appoint a substitute Securities Depository or (ii) the City terminates the services of the
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FG: 101442482.5
Securities Depository, the Bonds no longer shall be held in book-entry only form and the registered
ownership of each Bond may be transferred to any person as provided in this ordinance.
Neither the City nor the Bond Registrar shall have any obligation to participants of any
Securities Depository or the persons for whom they act as nominees regarding accuracy of any
records maintained by the Securities Depository or its participants. Neither the City nor the Bond
Registrar shall be responsible for any notice that is permitted or required to be given to a Registered
Owner except such notice as is required to be given by the Bond Registrar to the Securities
Depository.
Section 7. Form and Execution of Bonds.
(a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the
Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and
the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If
any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the
City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is
authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be
as binding on the City as though that person had continued to be an officer of the City authorized
to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual
date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she
did not hold the required office on its Issue Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in substantially
the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any
purpose or entitled to the benefits of this ordinance: “Certificate of Authentication. This Bond is
one of the fully registered City of Pasco, Washington, Water and Sewer [Improvement]
[Refunding] [Improvement and Refunding] Bonds, 20[__] described in the Bond Ordinance.” The
authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so
authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of
this ordinance.
Section 8. Payment of Bonds. Principal of and interest on each Bond shall be payable
in lawful money of the United States of America. Principal of and interest on each Bond registered
in the name of the Securities Depository is payable in the manner set forth in the Letter of
Representations. Interest on each Bond not registered in the name of the Securities Depository is
payable by electronic transfer on the interest payment date, or by check or draft of the Bond
Registrar mailed on the interest payment date to the Registered Owner at the address appearing on
the Bond Register on the Record Date. The City is not required to make electronic transfers except
pursuant to a request by a Registered Owner in writing received on or prior to the Record Date and
at the sole expense of the Registered Owner. Principal of each Bond not registered in the name of
the Securities Depository is payable upon presentation and surrender of the Bond by the Registered
Owner to the Bond Registrar. The Bonds are payable solely out of the Bond Fund and are not
general obligations of the City. The Bonds are not subject to acceleration under any circumstances.
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Section 9. Redemption Provisions and Purchase of Bonds.
(a) Optional Redemption. The Bonds shall be subject to redemption at the option of the
City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase
Contract, consistent with the parameters set forth in Exhibit A.
(b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the Bond
Purchase Contract, consistent with the parameters set forth in Exhibit A and except as set forth
below, shall be called for redemption at a price equal to the stated principal amount to be redeemed,
plus accrued interest, on the dates and in the amounts as set forth in the Bond Purchase Contract.
If a Term Bond is redeemed under the optional redemption provisions, defeased or purchased by
the City and surrendered for cancellation, the principal amount of the Term Bond so redeemed,
defeased or purchased (irrespective of its actual redemption or purchase price) shall be credited
against one or more scheduled mandatory redemption installments for that Term Bond. The City
shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar
in writing of its allocation prior to the earliest mandatory redemption date for that Term Bond for
which notice of redemption has not already been given.
(c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the
outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series and
maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a Series are
to be redeemed, the Securities Depository shall select Bonds registered in the name of the
Securities Depository to be redeemed in accordance with the Letter of Representations, and the
Bond Registrar shall select all other Bonds to be redeemed randomly in such manner as the Bond
Registrar shall determine. The Bond Purchase Contract may establish the manner in which any
Taxable Series or portions of any Taxable Series are selected for redemption. All or a portion of
the principal amount of any Bond that is to be redeemed may be redeemed in any Authorized
Denomination. If less than all of the outstanding principal amount of any Bond is redeemed, upon
surrender of that Bond to the Bond Registrar, there shall be issued to the Registered Owner, without
charge, a new Bond (or Bonds, at the option of the Registered Owner) of the same Series, maturity
and interest rate in any Authorized Denomination in the aggregate principal amount to remain
outstanding.
(d) Notice of Redemption. Notice of redemption of each Bond registered in the name
of the Securities Depository shall be given in accordance with the Letter of Representations. Notice
of redemption of each other Bond, unless waived by the Registered Owner, shall be given by the
Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption by
first-class mail, postage prepaid, to the Registered Owner at the address appearing on the Bond
Register on the Record Date. The requirements of the preceding sentence shall be satisfied when
notice has been mailed as so provided, whether or not it is actually received by an Owner. In
addition, the redemption notice shall be mailed or sent electronically within the same period to the
MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and
with such additional information as the Finance Director shall determine, but these additional
mailings shall not be a condition precedent to the redemption of any Bond.
(e) Rescission of Optional Redemption Notice. In the case of an optional redemption,
the notice of redemption may state that the City retains the right to rescind the redemption notice
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and the redemption by giving a notice of rescission to the affected Registered Owners at any time
on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded
shall be of no effect, and each Bond for which a notice of redemption has been rescinded shall
remain outstanding.
(f) Effect of Redemption. Interest on each Bond called for redemption shall cease to
accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded
as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond
Fund or in a trust account established to refund or defease the Bond.
(g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds
offered to the City or in the open market at any time at any price acceptable to the City plus accrued
interest to the date of purchase. All Bonds so purchased shall be canceled.
Section 10. Failure to Pay Bonds. If the principal of any Bond is not paid when the Bond
is properly presented at its maturity or date fixed for redemption, the City shall be obligated to pay
interest on that Bond at the same rate provided in the Bond from and after its maturity or date fixed
for redemption until that Bond, both principal and interest, is paid in full or until sufficient money
for its payment in full is on deposit in the Bond Fund, or in a trust account established to refund or
defease the Bond, and the Bond has been called for payment by giving notice of that call to the
Registered Owner.
Section 11. Bond Fund; Payments into Bond Fund. The Bond Fund has been previously
created and established as a special fund of the City known and designated as the Water and Sewer
Revenue and Refunding Bond Redemption Fund, 1991, which fund has been divided into two
accounts, namely, the Principal and Interest Account and the Reserve Account. So long as any
Parity Bonds are outstanding against the Bond Fund, the Finance Director shall set aside and pay
into the Bond Fund all ULID Assessments upon their collection and, out of the Net Revenue,
certain fixed amounts without regard to any fixed proportion, namely, amounts, together with any
ULID Assessments collected by the City and deposited into the applicable account in the Bond
Fund and investment earnings in that account, as follows:
(a) Into the Principal and Interest Account, on or before each interest or principal and
interest payment date, an amount equal to the interest or the principal and interest to become due
and payable on that interest or principal and interest payment date of all Parity Bonds; and
(b) Into the Reserve Account, on the Issue Date of the Bonds, an amount sufficient,
together with any Reserve Insurance, to fully fund the Reserve Requirement for all Parity Bonds.
Money deposited in the Reserve Account for the Reserve Requirement for all Parity Bonds
may be decreased for any issue of Parity Bonds when and to the extent the City has provided for
an Alternate Security or Reserve Insurance for those bonds.
When the 2013A Bonds and 2013T Bonds are no longer outstanding, the following
paragraph shall become effective: The City may establish, for the Bonds and one or more series
of Future Parity Bonds, a separate reserve requirement (which may be zero), to be held in a
separate reserve account, for the purpose of securing those Parity Bonds, and those Parity Bonds
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shall not be secured by amounts in the Reserve Account or by any Reserve Insurance credited to
the Reserve Account.
The City may establish additional accounts in the Bond Fund for the deposit of ULID
Assessments after the deposit of the required amount in the other funds.
The Reserve Account for any Future Parity Bonds may be accumulated from any other
funds which the City legally may have available for such purpose in addition to using ULID
Assessments and Net Revenue.
The City further agrees that when the required amounts have been paid into the Reserve
Account in the Bond Fund, the City will maintain those amounts therein at all times, except for
withdrawals therefrom as authorized herein, until there is sufficient money in the Bond Fund,
including the Reserve Account therein, to pay the principal of and interest to maturity on all
outstanding bonds payable from the Bond Fund, at which time no further payments need be made
into the Bond Fund, and the money in the Bond Fund, including the Reserve Account, may be used
to pay that principal and interest.
If there shall be a deficiency in the Principal and Interest Account to meet maturing
installments of either principal or interest, as the case may be, on the Bonds, the deficiency shall
be made up from the Reserve Account by first the withdrawal of cash and investments therefrom
and after all cash and investments have been depleted, then by the draws on any Reserve Insurance
for that purpose on a pro rata basis. Any deficiency created in the Reserve Account by reason of
any withdrawal shall then be made up from the Net Revenue first available after making necessary
provisions for the required payments into the Principal and Interest Account. When the 2013A
Bonds, 2013T Bonds, 2015 Bonds and 2017 Bonds are no longer outstanding, the preceding
sentence shall be replaced with the following: Any deficiency created in the Reserve Account by
reason of any withdrawal shall then be made up in not more than 12 approximately equal monthly
installments from Net Revenue in accordance with the flow of funds set forth in Section 14, first,
to reinstate each Reserve Insurance pro rata, and second, to make up any remaining deficiency.
All money in the Reserve Account not needed to meet the payments of principal and
interest when due may be kept on deposit in the official bank depository of the City or in any
national bank or may be invested in any legal investment for City funds maturing not later than
the interest or principal and interest payment date when the money will be needed. Interest on any
of those investments or on that bank account shall be deposited in and become a part of the Reserve
Account until the Reserve Requirement shall have been accumulated therein, after which time the
interest shall be deposited in the Principal and Interest Account.
Notwithstanding the provisions for the deposit or maintenance of earnings in accounts of
the Bond Fund, any earnings which are subject to a federal tax or rebate requirement may be
withdrawn from the Bond Fund for deposit into a separate fund or account for that purpose.
If the City shall fail to set aside and pay into the Bond Fund the amounts which it has
obligated itself by this section to set aside and pay therein, the Owner of any Bond may bring suit
against the City to compel it to do so.
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Section 12. Rate Stabilization Account. When the 2013A Bonds, 2013T Bonds, 2015
Bonds and 2017 Bonds are no longer outstanding, this Section 12 shall become effective: The
City is authorized to create the Rate Stabilization Account in the Water and Sewer Revenue Fund.
The City may at any time, consistent with the flow of funds in Section 14, deposit in the Rate
Stabilization Account Gross Revenue and any other money received by the Waterworks Utility
available to be used therefor, excluding principal proceeds of bonds or other obligations. The City
may at any time withdraw money from the Rate Stabilization Account for use in accordance with
Section 14. Deposits into the Rate Stabilization Account shall reduce Net Revenue for the year in
which the deposit is made or, at the option of the City, for the preceding year if the deposit is made
within three months after the end of the preceding year. Withdrawals from the Rate Stabilization
Account shall increase Net Revenue for the year in which the withdrawal is made or, at the option
of the City, for the preceding year if the withdrawal is made within three months after the end of
the preceding year.
Section 13. Pledge, Lien and Charge for Payment of the Bonds. The Net Revenue and
ULID Assessments are pledged to the payment of the principal of and interest on the Bonds when
due and shall constitute a lien and charge upon that Net Revenue and ULID Assessments prior and
superior to any other charges whatsoever, except that the lien and charge upon such Net Revenue
and ULID Assessments for the Bonds shall be on a parity with the lien and charge thereon for any
outstanding Parity Bonds.
Section 14. Flow of Funds. Funds in the Water and Sewer Revenue Fund shall be used
in the following order of priority:
(1) To pay Operating and Maintenance Expenses;
(2) To make all payments required to be made into the Bond Fund to pay and secure
the payment of the Annual Debt Service on all outstanding Parity Bonds;
(3) To make all payments required to be made into the Reserve Account and to make
all payments (principal and interest) required to be made in connection with
Reserve Insurance and any Alternate Security, except if there is not sufficient
money to make all payments for Reserve Insurance and any Alternate Security, the
payments shall be made on a pro rata basis with deposits in the Reserve Account;
(4) To make all payments required to be made into the loan redemption funds or
accounts, and other revenue bond redemption funds created to pay the debt service
on any revenue obligation having a lien upon the Net Revenue subordinate to the
lien of the Bonds; and
(5) To make necessary additions, betterments, improvements or repairs to the
Waterworks Utility, to retire by redemption or purchase any outstanding Parity
Bonds, and when the 2013A Bonds, 2013T Bonds, 2015 Bonds and 2017 Bonds
are no longer outstanding, to make deposits into the Rate Stabilization Account,
or for any other lawful purpose.
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Section 15. Covenants. The City covenants and agrees with the Owner of each of the
Bonds as follows:
(a) It will not sell, lease, mortgage, or in any manner encumber or dispose of all the
properties of the Waterworks Utility unless provision is made for payment into the Bond Fund of
an amount sufficient either to defease all outstanding Parity Bonds or to pay the principal of and
interest on all the outstanding Parity Bonds in accordance with the terms thereof; and further binds
itself irrevocably not to mortgage, sell, lease or in any manner dispose of any part of the
Waterworks Utility that is used, useful and material to the operation of such utility unless provision
is made for replacement thereof or for payment into the Bond Fund of an amount which shall bear
the same ratio to the amount of outstanding Parity Bonds as the Net Revenue available for debt
service for such bonds for the twelve months preceding such sale, lease, encumbrance or disposal
from the portion of the Waterworks Utility so leased, encumbered or disposed of bears to the Net
Revenue available for debt service for such bonds from the entire Waterworks Utility for the same
period. Any such money so paid into the Bond Fund shall be used to retire outstanding Parity
Bonds at the earliest possible date.
(b) It will maintain and keep the Waterworks Utility in good repair, working order and
condition and to operate such utility and the business in connection therewith in an efficient
manner and at a reasonable cost.
(c) It will maintain and collect such rates as will produce sufficient Net Revenue,
together with ULID Assessment collections, as will make available for the payment of the principal
of and interest on the Parity Bonds as they come due and for payments as required to be made into
the Reserve Account therein an amount at least equal to the Coverage Requirement and, in addition
thereto, that it will pay all Operating and Maintenance Expenses and otherwise meet the
obligations of the City as herein set forth. When the 2013A Bonds, 2013T Bonds, 2015 Bonds
and 2017 Bonds are no longer outstanding, the following sentence shall become effective: A
failure to comply with this covenant is not a default of this covenant (or an Event of Default as
described in Section 24) if the City, before the date 90 days after the end of the calendar year, (i)
employs a licensed professional engineer experienced in the design, construction and operation of
municipal utilities or an independent certified public accountant to recommend changes in the
City’s rates and (ii) imposes rates at least as high as those recommended by the consultant.
(d) It will keep proper books of accounts and records separate and apart from other
accounts and records, in which complete and correct entries will be made of all transactions
relating to the Waterworks Utility, and it will make available to any Owner on written request the
annual operating and income statements of the Waterworks Utility.
(e) Except to aid the poor or infirm, to provide for resource conservation or to provide
for the proper handling of hazardous materials, it will not furnish water or sewerage service to any
customer whatsoever free of charge and it shall, not later than 60 days after the end of each calendar
year, take such legal action as may be feasible to enforce collection of all collectible delinquent
accounts and, in addition thereto, shall promptly avail itself of its utility lien rights, as set forth in
applicable statutes.
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(f) It will carry the types of insurance on its Waterworks Utility properties in the
amounts normally carried by private water and sewer companies engaged in the operation of water
and sewerage systems, and the cost of such insurance shall be considered a part of Operating and
Maintenance Expenses, or it will implement and maintain a self-insurance program or an insurance
pool program with reserves adequate, in the judgment of the City Council, to protect the owners
of the Parity Bonds against loss.
(g) To the extent permitted by State law, it will maintain its corporate identity and
existence so long as any Bonds remain outstanding.
(h) It will not grant any competing utility service franchise and will use all legal means
to prevent competition with the Waterworks Utility.
(i) If on the first day of January in any year, two installments of any ULID Assessment
are delinquent, or the final installment of any ULID Assessment has been delinquent for more than
one year, the City shall proceed with the foreclosure of the delinquent assessment or delinquent
installments thereof in the manner provided by law.
Section 16. Provisions for Future Parity Bonds. The City reserves the right to issue
Future Parity Bonds if the Parity Conditions set forth in Exhibit B are met and complied with at
the time of the issuance of those Future Parity Bonds.
Nothing herein contained shall prevent the City from issuing Future Parity Bonds to refund
any maturing Parity Bonds then outstanding, money for the payment of which is not otherwise
available.
Nothing herein contained shall prevent the City from issuing revenue bonds or incurring
other obligations that are a charge upon the Net Revenue subordinate or inferior to the payments
required to be made therefrom into the Bond Fund for the payment of Parity Bonds or from
pledging the payment of utility local improvement district assessments into a redemption fund
created for the payment of the principal of and interest on those subordinate lien bonds or
obligations as long as such utility local improvement district assessments are levied for
improvements constructed from the proceeds of those subordinate lien bonds or obligations.
Section 17. Separate Utility Systems. When the 2013A Bonds, 2013T Bonds, 2015
Bonds and 2017 Bonds are no longer outstanding, this Section 17 shall become effective: The
City may at any time create, acquire, construct, finance, own and operate one or more systems for
water supply, sewer service, water or wastewater transmission, treatment or other utility service,
commodity or facilities, which systems are separate from and in addition to the Waterworks Utility.
The revenues of that Separate Utility System, and any utility local improvement district
assessments payable solely with respect to improvements to a Separate Utility System, are not
included in Gross Revenue and may be pledged to the payment of revenue obligations issued to
purchase, construct, condemn or otherwise acquire or expand the Separate Utility System. The
City may not pledge Gross Revenue or Net Revenue to the payment of any obligations of a Separate
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Utility System, except that Net Revenue may be pledged on a basis subordinate to the lien of the
Parity Bonds.
Section 18. Contract Resource Obligations. When the 2013A Bonds, 2013T Bonds,
2015 Bonds and 2017 Bonds are no longer outstanding, this Section 18 shall become effective:
The City may at any time enter into one or more Contract Resource Obligations for the acquisition,
from facilities to be constructed or improved by the use of payments under such Contract Resource
Obligations, of water supply, sewer service, water or wastewater transmission, treatment or other
utility service or commodity relating to the Waterworks Utility, as follows:
(a) The City may agree under a contract containing a Contract Resource Obligation
that all payments in respect of that Contract Resource Obligation (including payments prior to the
time that water or wastewater service is being provided, or during a suspension or after
termination of supply or service) shall be deemed Operating and Maintenance Expenses, so long
as the payments required to be made under the Contract Resource Obligation are not subject to
acceleration and the following additional requirements are met at the time such obligation is
designated as a Contract Resource Obligation:
(1) No material default (or Event of Default as defined in Section 24)
has occurred and is continuing under the terms of any debt obligation of the City
in respect of the Waterworks Utility; and
(2) The City has obtained a certificate of an independent utility
consultant stating that in its professional opinion: (A) the payments to be made by
the City in connection with the Contract Resource Obligation are reasonable for
the service rendered; (B) the source of any new supply, and any facilities to be
constructed to provide the supply, service or transmission, are sound from a supply
or planning standpoint, are technically and economically feasible in accordance
with prudent utility practice, and are likely to provide supply, service or
transmission no later than a date set forth in the certification; and (C) the Net
Revenue will be sufficient to meet the Coverage Requirement for each of the five
calendar years following the calendar year in which the Contract Resource
Obligation is incurred, where the calculation of Net Revenue (i) takes into account
the adjustments permitted in connection with a coverage certification given under
the conditions for Future Parity Bonds and (ii) adjusts the Operating and
Maintenance Expenses by the consultant’s estimate of the payments to be made in
accordance with the Contract Resource Obligation.
(b) Nothing in this section prevents the City from entering into agreements for the
acquisition of water supply, sewer service, water or wastewater transmission, treatment or other
utility service or commodity relating to the Waterworks Utility from then-existing facilities and
from treating those payments as Operating and Maintenance Expenses. Nothing in this section
prevents the City from entering into other agreements for the acquisition of water supply, sewer
service, water or wastewater transmission, treatment or other utility service or commodity from
facilities to be constructed and from agreeing to make payments with respect thereto, such
payments to be made on a basis subordinate to the lien of the Parity Bonds until such time as the
facilities are placed in service.
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Section 19. Tax Covenants.
(a) Interest on Taxable Series. Interest on any Bonds of a Taxable Series will not be
excluded from gross income of the Owners of such Bonds of a Taxable Series for federal income
tax purposes.
(b) Preservation of Tax Exemption for Interest on Tax-Exempt Series. The City
covenants that it will take all actions necessary to prevent interest on any Tax-Exempt Series from
being included in gross income for federal income tax purposes, and it will neither take any action
nor make or permit any use of proceeds of such Tax-Exempt Series or other funds of the City
treated as proceeds of such Tax-Exempt Series that will cause interest such Tax-Exempt Series to
be included in gross income for federal income tax purposes. The City also covenants that it will,
to the extent the arbitrage rebate requirements of Section 148 of the Code are applicable to any
Tax-Exempt Series, take all actions necessary to comply (or to be treated as having complied) with
those requirements in connection with such Tax-Exempt Series.
(c) Post-Issuance Compliance. The Finance Director is authorized and directed to
review and update the City’s written procedures to facilitate compliance by the City with the
covenants in this ordinance and the applicable requirements of the Code that must be satisfied after
the Issue Date to prevent interest on any Tax-Exempt Series from being included in gross income
for federal tax purposes.
Section 20. Refunding or Defeasance of Bonds. The City may issue refunding bonds
pursuant to State law or use money available from any other lawful source to carry out a refunding
or defeasance plan, which may include (a) paying when due the principal of and interest on any or
all of the Bonds (the “defeased Bonds”); (b) redeeming the defeased Bonds prior to their maturity;
and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special trust fund
or escrow account irrevocably pledged to that redemption or defeasance (the “trust account”),
money and/or Government Obligations maturing at a time or times and bearing interest in amounts
sufficient to redeem, refund or defease the defeased Bonds in accordance with their terms, then all
right and interest of the Owners of the defeased Bonds in the covenants of this ordinance and in
the funds and accounts obligated to the payment of the defeased Bonds, shall cease and become
void. Thereafter, the Owners of defeased Bonds shall have the right to receive payment of the
principal of and interest on the defeased Bonds solely from the trust account and the defeased
Bonds shall be deemed no longer outstanding. In that event, the City may apply money remaining
in any fund or account (other than the trust account) established for the payment or redemption of
the defeased Bonds to any lawful purpose, subject only to the rights of the Owners of any other
Parity Bonds then outstanding.
If the refunding or defeasance plan provides that the defeased Bonds or the refunding bonds
to be issued be secured by money and/or Government Obligations pending the prior redemption
of the defeased Bonds and if such refunding plan also provides that certain money and/or
Government Obligations are pledged irrevocably for the prior redemption of the defeased Bonds
included in that refunding plan, then only the debt service on the Bonds which are not defeased
Bonds and the refunding bonds, the payment of which is not so secured by the refunding plan,
shall be included in the computation of the Coverage Requirement for the issuance of Future Parity
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Bonds and the annual computation of the Coverage Requirement for determining compliance with
the rate covenants in this ordinance.
Unless otherwise specified by the City in a refunding or defeasance plan, notice of
refunding or defeasance shall be given, and selection of Bonds for any partial refunding or
defeasance shall be conducted, in the manner prescribed in this ordinance for the redemption of
Bonds.
Section 21. Deposit of Bond Proceeds; Creation of Construction Accounts.
Immediately upon the issuance and delivery of the Bonds, the City shall cause the following to
occur:
(a) Reserve Account. Proceeds of the Bonds as needed to satisfy the Reserve
Requirement shall either be deposited in the Reserve Account or used to acquire Reserve Insurance
in an amount sufficient to satisfy the Reserve Requirement with respect to the Bonds.
(b) Refunding Plan. The remaining proceeds of the Refunding Bonds shall be deposited
with the Refunding Trustee as set forth in Section 22.
(c) Construction Accounts. The Finance Director is authorized to establish one or more
special accounts within the Water/Sewer Fund, designated as the Construction Accounts. The
remaining proceeds of the Project Bonds shall be paid into the Construction Accounts and used to
pay the costs of the Plan of Additions and the costs of issuing the Project Bonds (if not included
in the Refunding Plan). Until needed to pay those costs, the City may invest proceeds deposited in
the Construction Accounts temporarily in any legal investment, and the investment earnings may
be retained in such accounts and be spent for the purposes of those accounts, except that earnings
subject to a federal tax or rebate requirement may be withdrawn therefrom and used for those tax
or rebate purposes.
Section 22. Use of Refunding Proceeds; the Refunding Plan.
(a) Appointment of Refunding Trustee. The Designated Representative is authorized
and directed to appoint a financial institution to serve as the Refunding Trustee and to perform the
duties of Refunding Trustee under this ordinance.
(b) Selection of Refunded Bonds. The Designated Representative is authorized and
directed to select the Refunding Candidates to be refunded by the Bonds. The Designated
Representative may choose to refund fewer than all of the Refunding Candidates. The Refunded
Bonds, as selected by the Designated Representative, shall be identified in the Refunding Plan set
forth in the Refunding Trust Agreement.
(c) Use of Refunding Proceeds; Purchase of Acquired Obligations. On the Issue Date,
sufficient proceeds of the sale of the Refunding Bonds, together with the City Contribution, shall
be deposited with the Refunding Trustee and used to discharge the obligations of the City relating
to the Refunded Bonds under the applicable Parity Bond Ordinance by providing for the payment
of the amounts required to be paid by the Refunding Plan. To the extent practicable, such
obligations shall be discharged fully by the Refunding Trustee’s simultaneous purchase of the
Acquired Obligations, bearing such interest and maturing as to principal and interest in such
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amounts and at such times so as to provide, together with a beginning cash balance, if necessary,
for the payment of the amount required to be paid by the Refunding Plan. The Acquired
Obligations shall be listed and more particularly described in a schedule attached to the Refunding
Trust Agreement, but are subject to substitution as set forth below. The Designated Representative
is authorized and directed to approve the Acquired Obligations, if any, to be purchased.
Any Project Bond proceeds deposited with the Refunding Trustee and not used to pay the
costs of issuance of the Project Bonds shall be returned to the City for deposit in the Construction
Accounts. Any Refunding Bond proceeds or other money deposited with the Refunding Trustee
not needed to carry out the Refunding Plan shall be returned to the City for deposit in the Principal
and Interest Account to pay interest on the Refunding Bonds on the next upcoming interest
payment date.
(d) Substitution of Acquired Obligations. The City reserves the right at any time to
substitute cash or other direct, noncallable obligations of the United States of America (“Substitute
Obligations”) for any of the Acquired Obligations if the City obtains (1) an opinion of Bond
Counsel to the effect that the interest on the Tax-Exempt Series of Refunding Bonds and the Tax-
Exempt Series of Refunded Bonds will remain excluded from gross income for federal income tax
purposes under Sections 103 and 148 of the Code, and (2) a verification by a nationally recognized
independent certified public accounting firm that such substitution will not impair the timely
payment of the amounts required to be paid by the Refunding Plan. Any surplus money resulting
from the sale, transfer, other disposition or redemption of the Acquired Obligations and the
substitutions therefor shall be released from the trust estate and transferred to the City to be used
for any lawful purpose.
(e) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or Substitute Obligations) and to make the
payments required to be made pursuant to the Refunding Plan from the Acquired Obligations (or
Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance and the Refunding Trust Agreement. All Acquired Obligations (or Substitute
Obligations) and money deposited with the Refunding Trustee and any income therefrom shall be
held irrevocably, invested and applied in accordance with the provisions of the applicable Parity
Bond Ordinance authorizing the Refunded Bonds, this ordinance, chapter 39.53 RCW and other
applicable laws of the State and the Refunding Trust Agreement. All necessary and proper fees,
compensation and expenses of the Refunding Trustee and all other costs incidental to the setting
up of the escrow to accomplish the Refunding Plan and costs related to the issuance, sale and
delivery of the Bonds, including bond printing, rating agency fees, verification fees, Bond
Counsel's fees and other related expenses, shall be paid out of the proceeds of the Bonds.
(f) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan, the
Designated Representative is authorized and directed to execute and deliver to the Refunding
Trustee the Refunding Trust Agreement setting forth the duties, obligations and responsibilities of
the Refunding Trustee in connection with the payment, redemption and retirement of the Refunded
Bonds as provided herein and stating that the provisions for payment of the fees, compensation
and expenses of the Refunding Trustee set forth therein are satisfactory to it.
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(g) Call for Redemption of the Refunded Bonds. The Designated Representative is
authorized to call the Refunded Bonds for redemption on their Redemption Date at par, plus
accrued interest. Such call for redemption shall be irrevocable after the delivery of the Bonds to
the Purchaser. The Refunding Trustee is authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required, pursuant to the ordinances authorizing
the issuance of the Refunded Bonds and the Refunding Trust Agreement to carry out the Refunding
Plan.
(h) Additional Finding with Respect to Refunding. The Designated Representative shall
find and determine that the money to be deposited with the Refunding Trustee to carry out the
Refunding Plan will discharge and satisfy the obligations of the City under the applicable Parity
Bond Ordinance, and the pledges, charges, trusts, covenants and agreements of the City therein
made or provided for as to the Refunded Bonds, and that the Refunded Bonds will no longer be
deemed to be outstanding under applicable Parity Bond Ordinance immediately upon the deposit
of such money with the Refunding Trustee.
Section 23. Amendatory and Supplemental Ordinances. When the 2013A Bonds,
2013T Bonds, 2015 Bonds and 2017 Bonds are no longer outstanding, this Section 23 shall
become effective: This ordinance shall not be modified or amended in any respect so long as the
Bonds are outstanding, except as provided in and in accordance with and subject to the provisions
of this section. For purposes of this provision, the passage of an ordinance authorizing the
issuance of Future Parity Bonds shall not be considered an amendatory or supplemental
ordinance.
(a) Certain Amendatory or Supplemental Ordinances Permitted Without Bond Owner
Consent. The City, from time to time, and at any time, without the consent of or notice to the
registered owners of the Parity Bonds, may pass amendatory or supplemental ordinances as set
forth in this subsection (a). Before passing any such amendatory or supplemental ordinance, the
City must have delivered to it an opinion of Bond Counsel, stating that such ordinance is
authorized or permitted by this ordinance and, upon its effective date, will be valid and binding
upon the City in accordance with its terms and will not adversely affect the exclusion from gross
income for federal income tax purposes of interest on any tax-exempt Parity Bonds then
outstanding. The permitted purposes under this subsection (a) are:
(1) To cure any formal defect, omission, inconsistency or ambiguity in
this ordinance in a manner not adverse to the owner of any Parity Bond.
(2) To impose upon the Bond Registrar (or a bond trustee, if any), with
its consent, any additional rights, remedies, powers, authority, security, liabilities
or duties which may lawfully be granted, conferred or imposed and which are not
contrary to or inconsistent with this ordinance as theretofore in effect.
(3) To add covenants, agreements, limitations and restrictions to be
observed by the City which are not contrary or inconsistent with this ordinance as
theretofore in effect.
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(4) To confirm, as further assurance, any pledge under this ordinance
(and the subjection to any claim, lien or pledge created or to be created by this
ordinance) of any other money, securities or funds.
(5) To authorize different denominations of the Bonds and to make
correlative amendments and modifications to this ordinance regarding
exchangeability of Bonds of different authorized denominations, redemptions of
portions of Bonds of particular authorized denominations and similar amendments
and modifications of a technical nature.
(6) To amend or supplement this ordinance in any other respect which
is not materially adverse to the registered owners of the Parity Bonds and which
does not involve a change described in subsections (b) or (c).
(7) To maintain the exclusion from gross income of the interest on any
Tax-Exempt Series of Bonds from federal income taxation in light of a change in
federal law, regulations or rulings.
(b) Amendatory or Supplemental Ordinances Requiring Consent of Registered Owners
of 50% of Parity Bonds Outstanding. In addition to any ordinance permitted pursuant to
subsection (a) and subject to the terms and conditions contained in subsection (c) and not
otherwise, the City, upon the consent of registered owners of not less than 50% in aggregate
principal amount of the Parity Bonds then outstanding, shall have the right from time to time to
consent to and approve any amendatory or supplemental ordinance deemed necessary or desirable
by the City. Such an ordinance may amend or supplement, in any particular, any of the terms or
provisions contained in this ordinance. If at any time the City passes an amendatory or
supplemental ordinance under this subsection (b), the effective date shall be conditioned on the
following:
(1) The City must cause notice of the amendatory or supplemental
ordinance to be provided in electronic format through the Electronic Municipal
Market Access or other website then authorized by the MSRB for the Undertaking
to all registered owners of any then outstanding Parity Bonds and to each Rating
Agency. Such notice shall briefly summarize the ordinance and shall state that a
copy is available for review by request or on the City’s website.
(2) The ordinance may go into effect upon receipt by the City of (A) the
consents, in writing, of the required percentage of registered owners of the Parity
Bonds, and (B) an opinion of Bond Counsel to the effect that (i) such ordinance is
permitted by this ordinance, (ii) upon its effective date it will be valid and binding
upon the City in accordance with its terms and (iii) it will not adversely affect the
exclusion from gross income for federal income tax purposes of interest on any tax-
exempt Parity Bonds then outstanding.
(c) Amendatory or Supplemental Ordinances Requiring Consent of All Registered
Owners. Unless approved in writing by the registered owners of all Parity Bonds then outstanding,
nothing contained in this section shall permit, or be construed as permitting:
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(1) A change in the times, amounts or currency of payment of the
principal of or interest on any outstanding Parity Bond or a reduction in the
principal amount or redemption price of any outstanding Parity Bond or a change
in the redemption price of any outstanding Parity Bond or a change in the method
of determining the rate of interest thereon.
(2) A preference of priority of any Parity Bonds or any other bond or
bonds.
(3) A reduction in the aggregate principal amount of any Parity Bond.
(d) Effect of Passage of Amendatory or Supplemental Ordinance. Upon the adoption
of the amendatory or supplemental ordinance pursuant to the provisions of this section, this
ordinance shall be, and shall be deemed to be, amended and supplemented accordingly. No owner
of outstanding Parity Bonds shall have any right (1) to object to the passage of such ordinance,
(2) to object to any of the terms and provisions contained therein or the operation thereof, (3) in
any manner to question the propriety of the passage thereof or (4) to enjoin or restrain the City
from passing the same or taking any action pursuant thereto. The respective rights, duties and
obligations under this ordinance of the City, the Bond Registrar and all registered owners of Parity
Bonds, shall thereafter be determined, exercised and enforced under this ordinance subject in all
respects to such supplements and amendments.
Section 24. Defaults and Remedies. When the 2013A Bonds, 2013T Bonds, 2015
Bonds and 2017 Bonds are no longer outstanding, this Section 24 shall become effective:
(a) Events of Default. Each of the following constitutes an “Event of Default” with
respect to the Parity Bonds:
(1) If a default is made in the payment of the principal of or interest on
any of the Parity Bonds when the same shall become due and payable.
(2) If the City defaults in the observance and performance of any other
of its covenants, conditions and agreements set forth in this ordinance and such
default or defaults have continued for a period of six months after the City has
received from the registered owners of not less than 25% in outstanding principal
amount of Parity Bonds a written notice specifying and demanding the cure of such
default. However, if the default in the observance and performance of any other of
the covenants, conditions and agreements is one which cannot be completely
remedied within the six month period, it shall not be an Event of Default with
respect to the Bonds as long as the City has taken active steps within 90 days to
remedy the default and is diligently pursuing such remedy.
(3) If the City files a petition in bankruptcy or is placed in receivership
under any State or federal bankruptcy or insolvency law.
(b) Bondowners’ Trustee. So long as an Event of Default has not been remedied, a
bondowners’ trustee (the “Bondowners’ Trustee”) may be appointed by the registered owners of
25% in principal amount of Parity Bonds then outstanding by an instrument or concurrent
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instruments in writing signed and acknowledged by such registered owners of Parity Bonds or by
their attorneys-in-fact, duly authorized and delivered to such Bondowners’ Trustee, and after
notice of such appointment has been delivered to the City. That appointment shall become effective
immediately upon acceptance thereof by the Bondowners’ Trustee. Any Bondowners’ Trustee must
be a bank or trust company organized under the laws of the State of Washington or the State of
New York or a national banking association. The bank or trust company acting as Bondowners’
Trustee may be removed at any time, and a successor Bondowners’ Trustee may be appointed, by
the registered owners of a majority in principal amount of Parity Bonds, by an instrument or
concurrent instruments in writing signed and acknowledged by such registered owners of the
Bonds or by their attorneys-in-fact duly authorized. The Bondowners’ Trustee may require such
security and indemnity as may be reasonable against the costs, expenses and liabilities that may
be incurred in the performance of its duties. If any Event of Default is, in the sole judgment of the
Bondowners’ Trustee, cured and the Bondowners’ Trustee furnishes to the City a certificate so
stating, that Event of Default shall be conclusively deemed to be cured and the City, the
Bondowners’ Trustee and the registered owners of the Parity Bonds shall be restored to the same
rights and position which they would have held if no Event of Default had occurred. The
Bondowners’ Trustee appointed in the manner herein provided, and each successor thereto, is
declared to be a trustee for the registered owners of all the Parity Bonds and is empowered to
exercise all the rights and powers herein conferred on the Bondowners’ Trustee.
(c) Suits at Law or in Equity. Upon the happening of an Event of Default and during
the continuation thereof, the Bondowners’ Trustee may (and, upon the written request of the
registered owners of not less than 25% in principal amount of Parity Bonds outstanding, must)
take such steps and institute such suits, actions or other proceedings, all as it may deem
appropriate for the protection and enforcement of the rights of the registered owners of Parity
Bonds, to collect any amounts due and owing to or from the City, or to obtain other appropriate
relief, and may enforce the specific performance of any covenant, agreement or condition
contained in this ordinance or in any of the Parity Bonds.
Any action, suit or other proceedings instituted by the Bondowners’ Trustee hereunder
shall be brought in its name as trustee for the owners of Parity Bonds and all such rights of action
upon or under any of the Parity Bonds or the provisions of this ordinance may be enforced by the
Bondowners’ Trustee without the possession of any of those Parity Bonds and without the
production of the same at any trial or proceedings relative thereto except where otherwise
required by law. Any such suit, action or proceeding instituted by the Bondowners’ Trustee shall
be brought for the ratable benefit of all of the registered owners of those Parity Bonds, subject to
the provisions of this ordinance. The respective registered owners of Parity Bonds, by taking and
holding the same, shall be conclusively deemed irrevocably to appoint the Bondowners’ Trustee
the true and lawful trustee of the respective registered owners of those Parity Bonds, with authority
to institute any such action, suit or proceeding; to receive as trustee and deposit in trust any sums
becoming distributable on account of those Parity Bonds; to execute any paper or documents for
the receipt of money; and to do all acts with respect thereto that the registered owner himself or
herself might have done in person. Nothing herein shall be deemed to authorize or empower the
Bondowners’ Trustee to consent to accept or adopt, on behalf of any registered owner of Parity
Bonds, any plan of reorganization or adjustment affecting Parity Bonds or any right of any
registered owner thereof, or to authorize or empower the Bondowners’ Trustee to vote the claims
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of the registered owners thereof in any receivership, insolvency, liquidation, bankruptcy,
reorganization or other proceeding to which the City is a party.
(d) No Acceleration. Nothing contained in this section shall, in any event or under any
circumstance, be deemed to authorize the acceleration of maturity of principal of the Parity Bonds.
The remedy of acceleration is expressly denied to the owners of the Parity Bonds under any
circumstances including, without limitation, upon the occurrence and continuance of an Event of
Default.
(e) Application of Money Collected by Bondowners’ Trustee. Any money collected by
the Bondowners’ Trustee at any time pursuant to this section shall be applied in the following
order of priority:
(1) First, to the payment of the charges, expenses, advances and
compensation of the Bondowners’ Trustee and the charges, expenses, counsel fees,
disbursements and compensation of its agents and attorneys.
(2) Second, to the payment to the persons entitled thereto of all
installments of interest then due on Parity Bonds in the order of maturity of such
installments and, if the amount available shall not be sufficient to pay in full any
installment or installments maturing on the same date, then to the payment thereof
ratably, according to the amounts due thereon to the persons entitled thereto,
without any discrimination or preference.
(3) Third, to the payment to the persons entitled thereto of the unpaid
principal amounts of any Parity Bonds which shall have become due (other than
Parity Bonds previously called for redemption for the payment of which money is
held pursuant to the provisions hereto), whether at maturity or by proceedings for
redemption or otherwise, in the order of their due dates and, if the amount available
shall not be sufficient to pay in full the principal amounts due on the same date,
then to the payment thereof ratably, according to the principal amounts due thereon
to the persons entitled thereto, without any discrimination or preference.
(f) Duties and Obligations of Bondowners’ Trustee. The Bondowners’ Trustee shall
not be liable except for the performance of such duties as are specifically set forth herein. During
an Event of Default, the Bondowners’ Trustee shall exercise such of the rights and powers vested
in it hereby, and shall use the same degree of care and skill in its exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own affairs. The
Bondowners’ Trustee shall have no liability for any act or omission to act hereunder except for
the Bondowners’ Trustee’s own negligent action, its own negligent failure to act or its own willful
misconduct. The duties and obligations of the Bondowners’ Trustee shall be determined solely by
the express provisions of this ordinance, and no implied powers, duties or obligations of the
Bondowners’ Trustee shall be read into this ordinance. The Bondowners’ Trustee shall not be
required to expend or risk its own funds or otherwise incur individual liability in the performance
of any of its duties or in the exercise of any of its rights or powers as the Bondowners’ Trustee,
except as may result from its own negligent action, its own negligent failure to act or its own willful
misconduct. The Bondowners’ Trustee shall not be bound to recognize any person as a registered
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owner of any Parity Bonds until his or her title thereto, if disputed, has been established to its
reasonable satisfaction. The Bondowners’ Trustee may consult with counsel and the opinion of
such counsel shall be full and complete authorization and protection in respect of any action taken
or suffered by it hereunder in good faith and in accordance with the opinion of such counsel. The
Bondowners’ Trustee shall not be answerable for any neglect or default of any person, firm or
corporation employed and selected by it with reasonable care.
(g) Suits by Individual Owners of Parity Bonds Restricted. Neither the registered
owner nor the beneficial owner of any one or more of Parity Bonds have any right to institute any
action, suit or proceeding at law or in equity for the enforcement of same unless:
(1) an Event of Default has happened and is continuing; and
(2) a Bondowners’ Trustee has been appointed; and
(3) such owner previously shall have given to the Bondowners’ Trustee
written notice of the Event of Default on account of which such suit, action or
proceeding is to be instituted; and
(4) the registered owners of 25% in principal amount of the then
outstanding Parity Bonds have made, after the occurrence of such Event of Default,
written request of the Bondowners’ Trustee and have afforded the Bondowners’
Trustee a reasonable opportunity to institute such suit, action or proceeding; and
(5) there has been offered to the Bondowners’ Trustee security and
indemnity satisfactory to it against the costs, expenses and liabilities to be incurred
therein or thereby; and
(6) the Bondowners’ Trustee has refused or neglected to comply with
such request within a reasonable time.
No owner of any Parity Bond shall have any right in any manner whatever by his or her
action to affect or impair the obligation of the City to pay from the Net Revenue the principal of
and interest on Parity Bonds to the respective owners thereof when due.
Section 25. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is
authorized to sell the Bonds in one or more Series by negotiated sale to the Purchaser based on the
assessment of the Designated Representative of market conditions, in consultation with
appropriate City officials and staff, Bond Counsel and other advisors. In accepting the Final Terms,
the Designated Representative shall take into account those factors that, in the judgment of the
Designated Representative, may be expected to result in the lowest true interest cost to the City.
The Bond Purchase Contract for each Series of Bonds shall set forth the Final Terms for such
Series of Bonds. The Designated Representative is authorized to execute the Bond Purchase
Contract on behalf of the City, so long as the terms provided therein are consistent with the terms
of this ordinance.
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(b) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at
City expense and will be delivered to the Purchaser in accordance with the Bond Purchase
Contract, together with the approving legal opinion of Bond Counsel regarding the Bonds.
Section 26. Official Statement; Continuing Disclosure.
(a) Preliminary Official Statement Deemed Final. The Designated Representative shall
review and, if acceptable to him or her, approve the preliminary Official Statement prepared in
connection with the sale of the Bonds to the public. For the sole purpose of the Purchaser’s
compliance with paragraph (b)(1) of Rule 15c2-12, the Designated Representative is authorized to
deem that preliminary Official Statement final as of its date, except for the omission of information
permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential purchasers
of the Bonds of a preliminary Official Statement that has been approved by the Designated
Representative and been deemed final, if applicable, in accordance with this subsection.
(b) Approval of Final Official Statement. The City approves the preparation of a final
Official Statement for the Bonds to be sold to the public in the form of the preliminary Official
Statement that has been approved and deemed final in accordance with subsection (a), with such
modifications and amendments as the Designated Representative deems necessary or desirable,
and further authorizes the Designated Representative to execute and deliver such final Official
Statement to the Purchaser, if required under Rule 15c2-12. The City authorizes and approves the
distribution by the Purchaser of the final Official Statement so executed and delivered to
purchasers and potential purchasers of the Bonds.
(c) Undertaking to Provide Continuing Disclosure. If necessary to meet the
requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a
participating underwriter for the Bonds, the Designated Representative is authorized to execute a
written undertaking to provide continuing disclosure for the benefit of holders of the Bonds in
substantially the form attached as Exhibit C.
Section 27. General Authorization and Ratification. The Designated Representative and
other appropriate officers of the City are severally authorized to take such actions and to execute
such documents as in their judgment may be necessary or desirable to carry out the transactions
contemplated in connection with this ordinance, and to do everything necessary for the prompt
delivery of the Bonds to the Purchaser and for the proper application, use and investment of the
proceeds of the Bonds. All actions taken prior to the effective date of this ordinance in furtherance
of the purposes described in this ordinance and not inconsistent with the terms of this ordinance
are ratified and confirmed in all respects.
Section 28. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal
periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any
person or circumstance, such offending provision shall, if feasible, be deemed to be modified to
be within the limits of enforceability or validity. However, if the offending provision cannot be so
modified, it shall be null and void with respect to the particular person or circumstance, and all
other provisions of this ordinance in all other respects, and the offending provision with respect to
all other persons and all other circumstances, shall remain valid and enforceable.
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Section 29. Effective Date of Ordinance. This ordinance shall take effect and be in force
from and after its passage and five days following its publication as provided by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Pasco,
Washington, at a regular open public meeting, this 7th day of August, 2023.
Blanche Barajas, Mayor
ATTEST:
Debra Barham, City Clerk
APPROVED AS TO FORM:
Foster Garvey P.C.
Bond Counsel
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EXHIBIT A
PARAMETERS FOR FINAL TERMS
(i) Principal Amount. The Bonds may be issued in one or more Series and shall not exceed
the aggregate principal amount of $38,000,000.
(ii) Date or Dates. Each Bond shall be dated its Issue Date, which date may not be later than
one year after the effective date of this ordinance.
(iii) Denominations, Name, etc. The Bonds shall be issued in Authorized Denominations and
shall be numbered separately in the manner and shall bear any name and additional
designation as deemed necessary or appropriate by the Designated Representative.
(iv) Interest Rate(s). Each Bond shall bear interest at a fixed rate per annum (computed on
the basis of a 360-day year of twelve 30-day months) from the Issue Date or from the
most recent date for which interest has been paid or duly provided for, whichever is later.
One or more rates of interest may be fixed for each Bond or any Series of Bonds. No rate
of interest for any Bond or any Series of Bonds may exceed 7.00%, and the true interest
cost to the City for each Series of Bonds may not exceed 7.00%.
(v) Payment Dates. Interest shall be payable semiannually on each June 1 and December 1
(or such other semiannual dates acceptable to the Designated Representative),
commencing no later than one year following the Issue Date of such Series of Bonds.
Principal payments shall commence on a date acceptable to the Designated
Representative and shall be payable at maturity or in mandatory redemption installments
annually thereafter, on dates acceptable to the Designated Representative.
(vi) Final Maturity. The final maturity date of the Project Bonds following allocation, if
necessary under (xi) below, shall be no later than the date that is 31 years after the Issue
Date. The final maturity date of the Refunding Bonds following allocation, if necessary
under (xi) below, shall be no later than the final maturity date of the Refunded Bonds
refunded by such Refunding Bonds.
(vii) Redemption Rights. The Designated Representative may approve in the Bond Purchase
Contract provisions for the optional and mandatory redemption of Bonds, subject to the
following:
(1) Optional Redemption. Any Bond may be designated as being (A) subject to
redemption at the option of the City prior to its maturity date on the dates and at the
prices set forth in the Bond Purchase Contract; or (B) not subject to redemption
prior to its maturity date. If a Bond is subject to optional redemption prior to its
maturity, it must be subject to such redemption on one or more dates occurring not
more than 10½ years after the Issue Date.
(2) Mandatory Redemption. Any Bond may be designated as a Term Bond, subject to
mandatory redemption prior to its maturity on the dates and in the amounts set forth
in the Bond Purchase Contract.
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(viii) Price. The purchase price for each Series of Bonds may not be less than 95% or more
than 135% of the stated principal amount of that Series.
(ix) Selection of Refunded Bonds. Under the terms and conditions of this ordinance, the
Designated Representative is authorized to select the Refunded Bonds to be refunded by
the Refunding Bonds. Refunded Bonds, as selected by the Designated Representative,
shall be identified in the applicable Bond Purchase Contract and/or the applicable
Refunding Trust Agreement.
(x) Allocation of Bonds. For any combined Series of Bonds, the Designated Representative
shall allocate the maturing principal amounts to the Project Bonds and the Refunding
Bonds in such manner as will comply with applicable requirements of the Code, meet
restrictions of State law and effectuate any other allocation deemed necessary or
advisable for accounting and debt administration purposes.
(xi) Tax Status. The Designated Representative is authorized to determine whether any Series
of Bonds will be issued as a Taxable Series or a Tax-Exempt Series and to confirm the
identification of any such Taxable Series or Tax-Exempt Series in the Bond Purchase
Contract applicable to such Series of Bonds.
(xii) Other Terms and Conditions.
(1) The Designated Representative may determine whether it is in the City’s best
interest to provide for bond insurance or other credit enhancement; and may accept
such additional terms, conditions and covenants as he or she may determine are in
the best interests of the City, consistent with this ordinance.
(2) The Designated Representative must have determined that the Parity Conditions
have been met and satisfied as of the Issue Date of the Bonds.
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EXHIBIT B
PARITY CONDITIONS
(a) There shall be no deficiency in the Bond Fund.
(b) The ordinance providing for the issuance of the Future Parity Bonds shall provide
that all ULID Assessments shall be paid directly into the Bond Fund, except for any prepaid
assessments permitted by law to be paid into a construction fund or account.
(c) The ordinance providing for the issuance of such Future Parity Bonds shall provide
for the deposit into the Reserve Account (if such Future Parity Bonds are secured by the Reserve
Account) of (i) an amount equal to the Reserve Requirement for those Future Parity Bonds from
the Future Parity Bond proceeds, or (ii) Reserve Insurance or Alternate Security or an amount plus
Reserve Insurance or Alternate Security equal to the Reserve Requirement for those Future Parity
Bonds, or (iii) to the extent that the Reserve Requirement is not funded from Future Parity Bond
proceeds or Reserve Insurance or Alternate Security at the time of issuance of those Future Parity
Bonds, by no later than the fifth anniversary date from the dated date of the respective issue of
Future Parity Bonds from ULID Assessments, if any, levied and first collected for the payment of
the principal of and interest on those Future Parity Bonds and, to the extent that ULID Assessments
are insufficient, then from the Net Revenue in approximately equal annual payments, the Reserve
Requirement for those Future Parity Bonds. No Reserve Insurance or Alternate Security may be
used to satisfy the Reserve Requirement for Future Parity Bonds unless (i) the insurance policy or
Alternate Security is non-cancelable and (ii) the insurer or provider of the Alternate Security as of
the time of issuance of such insurance or Alternate Security is rated in the highest rating categories
by both Moody’s Investors Service, Inc., and Standard & Poor’s Ratings Services; however, when
the 2013A Bonds and 2013T Bonds are no longer outstanding, the Reserve Insurance or
Alternate Security may be rated as of the time of issuance of such insurance or Alternate
Security in one of the two-highest categories by either Moody’s Investors Service, Inc., or S&P
Global.
(d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide
for the payment of mandatory redemption or sinking fund requirements into the Bond Fund for
any Term Bonds to be issued and for regular payments to be made for the payment of the principal
of such Term Bonds on or before their maturity, or, as an alternative, the mandatory redemption
of those Term Bonds prior to their maturity date from money in the Principal and Interest Account.
(e) There shall be on file from a licensed professional engineer experienced in the
design, construction and operation of municipal utilities, or from an independent certified public
accountant, a certificate showing that in his or her professional opinion the Net Revenue for any
12 consecutive calendar months out of the immediately preceding 24 calendar months shall be
equal to the Coverage Requirement for each year thereafter, except that such certificate may be
provided by a City representative if it is based solely upon actual historical Net Revenue without
any adjustment.
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The certificate, in estimating the Net Revenue available for debt service, shall use
the historical Net Revenue for any 12 consecutive months out of the 24 months immediately
preceding the month of delivery of the Future Parity Bonds. Net Revenue may be adjusted to
reflect:
(1) Any changes in rates in effect and being charged or expressly adopted by
ordinance to take effect within 180 days after the date of this Certificate;
(2) Income derived from customers of the Waterworks Utility that have become
customers during the 12 consecutive month period or thereafter adjusted to reflect one
year’s net revenue from those customers;
(3) Revenue from any customers to be connected to the Waterworks Utility who
have paid the required connection charges;
(4) Revenue received or to be received which is derived from any person, firm,
corporation or municipal corporation under any executed contract for water, sewage
disposal or other utility service, which revenue was not included in the historical Net
Revenue;
(5) The engineer’s or accountant’s estimate of the Net Revenue to be derived
from customers to connect within 180 days after the date of the completion of the additions
to and improvements and extensions of the Waterworks Utility to be paid for out of the
proceeds of the sale of the additional Future Parity Bonds or from other additions to and
improvements and extensions of the Waterworks Utility then under construction and not
fully connected to the facilities of the Waterworks Utility when such additions,
improvements and extensions are completed;
(6) Any increases or decreases in Net Revenue as a result of any actual or
reasonably anticipated changes in Operating and Maintenance Expenses subsequent to the
12 month period; and
(7) When the 2013A Bonds, 2013T Bonds, 2015 Bonds and 2017 Bonds are
no longer outstanding, estimated deposits to and withdrawals from the Rate Stabilization
Account.
If Future Parity Bonds proposed to be so issued are for the sole purpose of refunding
outstanding bonds payable from the Bond Fund, such certification of coverage shall not be required
if the amount required for the payment of the principal and interest in each year for the refunding
bonds is not increased over the amount for that year required for the bonds to be refunded thereby
and if the maturities of such refunding bonds are not extended beyond the maturities of the bonds
to be refunded thereby.
Prior: Ordinance No. 4126, Section 16 (2013A Bonds; 2013T Bonds)
Ordinance No. 4254, Section 15 (2015 Bonds)
Ordinance No. 4365, Section 15 (2017 Bonds)
Ordinance No. 4487, Section 15 (2020A Bonds; 2020B Bonds)
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EXHIBIT C
[Form of]
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
City of Pasco, Washington
[Name of Series]
The City of Pasco, Washington (the “City”), makes the following written Undertaking for
the benefit of holders of the above-referenced bonds (the “Bonds”), for the sole purpose of assisting
the Purchaser in meeting the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a
participating underwriter for the Bonds. Capitalized terms used but not defined below shall have
the meanings given in Ordinance No. ____ of the City (the “Bond Ordinance”).
(a) Undertaking to Provide Annual Financial Information and Notice of Listed Events.
The City undertakes to provide or cause to be provided, either directly or through a designated
agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by
identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included in the
final official statement for the Bonds and described in paragraph (b)(i) (“annual financial
information”);
(ii) Timely notice (not in excess of 10 business days after the occurrence of the
event) of the occurrence of any of the following events with respect to the Bonds:
(1) principal and interest payment delinquencies; (2) non-payment related defaults, if
material; (3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions, the issuance by the Internal Revenue Service of proposed or final determinations
of taxability, Notice of Proposed Issue (IRS Form 5701 – TEB) or other material notices
or determinations with respect to the tax status of the Bonds or other material events
affecting the tax status of the Bonds; (7) modifications to rights of holders of the Bonds, if
material; (8) bond calls (other than scheduled mandatory redemptions of Term Bonds), if
material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property
securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy,
insolvency, receivership or similar event of the City, as such “Bankruptcy Events” are
defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or acquisition
involving the City or the sale of all or substantially all of the assets of the City other than
in the ordinary course of business, the entry into a definitive agreement to undertake such
an action or the termination of a definitive agreement relating to any such actions, other
than pursuant to its terms, if material; (14) appointment of a successor or additional trustee
or the change of name of a trustee, if material; (15) incurrence of a financial obligation of
the City or obligated person, if material, or agreement to covenants, events of default,
remedies, priority rights, or other similar terms of a financial obligation of the City or
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obligated person, any of which affect security holders, if material; and (16) default, event
of acceleration, termination event, modification of terms, or other similar events under the
terms of the financial obligation of the City or obligated person, any of which reflect
financial difficulties. The term “financial obligation” means a (i) debt obligation;
(ii) derivative instrument entered into in connection with, or pledged as security or a source
of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The
term “financial obligation” shall not include municipal securities as to which a final official
statement has been provided to the MSRB consistent with Rule 15c2-12.
(iii) Timely notice of a failure by the City to provide the required annual
financial information described in paragraph (b)(i) on or before the date specified in
paragraph (b)(ii).
(b) Type of Annual Financial Information Undertaken to be Provided. The annual
financial information that the City undertakes to provide in paragraph (a):
(i) Shall consist of (1) annual financial statements prepared (except as noted in
the financial statements) in accordance with applicable generally accepted accounting
principles applicable to local governmental units of the State such as the City, as such
principles may be changed from time to time; (2) outstanding debt secured by the Net
Revenue and ULID Assessments; (3) debt service coverage ratio for the year;
(4) Waterworks Utility number of customers; and (5) 10 largest water customers and 10
largest sewer customers of the Waterworks Utility by amount billed;
(ii) Shall be provided not later than the last day of the ninth month after the end
of each fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal
year may be changed as required or permitted by State law, commencing with the City’s
fiscal year ending December 31, 20[__]; and
(iii) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on the Internet
website of the MSRB or filed with the SEC.
If not submitted as part of the annual financial information described in paragraph (b)(i)
above, the City will provide or cause to be provided to the MSRB audited financial statements,
when and if available.
(c) Amendment of Undertaking. This Undertaking is subject to amendment after the
primary offering of the Bonds without the consent of any holder of any Bond, or of any broker,
dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under
the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the
MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief
statement of the reasons for the amendment. If the amendment changes the type of annual financial
information to be provided, the annual financial information containing the amended financial
information will include a narrative explanation of the effect of that change on the type of
information to be provided.
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FG: 101442482.5
(d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder
of each Bond, and shall not inure to the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City’s obligations under this Undertaking shall
terminate upon the legal defeasance of all of the Bonds. In addition, the City’s obligations under
this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply
with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely notice
of such termination to the MSRB.
(f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the
City learns of any failure to comply with this Undertaking, the City will proceed with due diligence
to cause such noncompliance to be corrected. No failure by the City or other obligated person to
comply with this Undertaking shall constitute a default in respect of the Bonds. The sole remedy
of any holder of a Bond shall be to take action to compel the City or other obligated person to
comply with this Undertaking, including seeking an order of specific performance from an
appropriate court.
(g) Designation of Official Responsible to Administer Undertaking. The Finance
Director or his or her designee is the person designated, in accordance with the Bond Ordinance,
to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the
following actions:
(i) Preparing and filing the annual financial information undertaken to be provided in
paragraph (a)(i);
(ii) Determining whether any failure to provide the annual financial information
undertaken to be provided in paragraph (a)(i) has occurred and providing any notice
undertaken to be provided in paragraph (a)(iii);
(iii) Determining whether any event specified in items (1)-(16) of paragraph (a)(ii) has
occurred, assessing its materiality, where necessary, with respect to the Bonds, and
preparing and disseminating any notice undertaken to be provided in paragraph
(a)(ii) of its occurrence;
(iv) Determining whether any person other than the City is an “obligated person” within
the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining from such
person an undertaking to provide any annual financial information and notice of
listed events for that person required under Rule 15c2-12;
(v) Selecting, engaging and compensating designated agents and consultants, including
but not limited to financial advisors and legal counsel, to assist and advise the City
in carrying out this Undertaking; and
(vi) Effecting any necessary amendment of this Undertaking.
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FG: 101442482.5
CERTIFICATION
I, the undersigned, City Clerk of the City of Pasco, Washington (the “City”), hereby certify
as follows:
1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held
at the regular meeting place thereof on August 7, 2023 (the “Meeting”), as that ordinance appears
on the minute book of the City.
2. The Ordinance will be in full force and effect five days after publication in the
City’s official newspaper, which publication date is __________ ____, 2023.
3. The Meeting was duly convened, held and included an opportunity for public
comment, in all respects in accordance with law; a quorum of the members of the City Council
was present throughout the meeting; and a majority of the members voted in the proper manner
for the passage of the Ordinance.
Dated: __________ ____, 2023.
CITY OF PASCO, WASHINGTON
Debra Barham, City Clerk
Page 176 of 236
FG Draft 7/19/2023
FG: 101461882.4
CITY OF PASCO, WASHINGTON
ORDINANCE NO. _____
AN ORDINANCE of the City of Pasco, Washington, relating to
contracting indebtedness; providing for the issuance, sale and delivery of not to
exceed $14,000,000 aggregate principal amount of limited tax general obligation
bonds to provide funds to finance construction and installation of Fire Station
No. 85 and related facilities, improvements to Gesa Stadium, Tri-Cities Animal
Shelter and Memorial Aquatic Park and other capital purposes, as deemed
necessary and advisable by the City, and to pay the costs of issuance and sale of
the bonds; fixing or setting parameters with respect to certain terms and covenants
of the bonds; appointing the City’s designated representative to approve the final
terms of the sale of the bonds; and providing for related matters.
Passed: August 7, 2023
This document prepared by:
Foster Garvey P.C.
1111 Third Avenue, Suite 3000
Seattle, Washington 98101
(206) 447-4400
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FG: 101461882.4
TABLE OF CONTENTS*
Page
Section 1. Definitions............................................................................................................... 1
Section 2. Findings and Determinations .................................................................................. 4
Section 3. Authorization of Bonds ........................................................................................... 5
Section 4. Description of Bonds; Appointment of Designated Representative ....................... 5
Section 5. Bond Registrar; Registration and Transfer of Bonds .............................................. 5
Section 6. Form and Execution of Bonds ................................................................................ 6
Section 7. Payment of Bonds ................................................................................................... 6
Section 8. Funds and Accounts; Deposit of Proceeds.............................................................. 7
Section 9. Redemption Provisions and Purchase of Bonds ..................................................... 7
Section 10. Failure to Pay Bonds ............................................................................................... 8
Section 11. Pledge of Taxes ....................................................................................................... 8
Section 12. Tax Covenants ........................................................................................................ 9
Section 13. Refunding or Defeasance of the Bonds .................................................................. 9
Section 14. Sale and Delivery of the Bonds ............................................................................ 10
Section 15. Official Statement; Continuing Disclosure ........................................................... 10
Section 16. Supplemental and Amendatory Ordinances.......................................................... 10
Section 17. General Authorization and Ratification ................................................................ 11
Section 18. Severability ........................................................................................................... 11
Section 19. Effective Date of Ordinance ................................................................................. 11
Exhibit A Parameters for Final Terms
Exhibit B Form of Undertaking to Provide Continuing Disclosure
*The cover page, table of contents and section headings of this ordinance are for convenience of reference only, and
shall not be used to resolve any question of interpretation of this ordinance.
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FG: 101461882.4
CITY OF PASCO, WASHINGTON
ORDINANCE NO. ____
AN ORDINANCE of the City of Pasco, Washington, relating to
contracting indebtedness; providing for the issuance, sale and delivery of not to
exceed $14,000,000 aggregate principal amount of limited tax general obligation
bonds to provide funds to finance construction and installation of Fire Station
No. 85 and related facilities, improvements to Gesa Stadium, Tri-Cities Animal
Shelter and Memorial Aquatic Park and other capital purposes, as deemed
necessary and advisable by the City, and to pay the costs of issuance and sale of
the bonds; fixing or setting parameters with respect to certain terms and covenants
of the bonds; appointing the City’s designated representative to approve the final
terms of the sale of the bonds; and providing for related matters.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as
follows:
Section 1. Definitions. As used in this ordinance, the following capitalized terms shall
have the following meanings:
(a) “Authorized Denomination” means $5,000 or any integral multiple thereof within
a maturity.
(b) “Beneficial Owner” means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(c) “Bond” means each bond issued pursuant to and for the purposes provided in this
ordinance.
(d) “Bond Counsel” means the firm of Foster Garvey P.C., its successor, or any other
attorney or firm of attorneys selected by the City with a nationally recognized standing as bond
counsel in the field of municipal finance.
(e) “Bond Fund” means the Limited Tax General Obligation Bond Fund, 2023, of the
City created for the payment of the principal of and interest on the Bonds.
(f) “Bond Purchase Contract” means an offer to purchase the Bonds setting forth
certain terms and conditions of the issuance, sale and delivery of those Bonds, which offer is
authorized to be accepted by the Designated Representative on behalf of the City, if consistent
with this ordinance.
(g) “Bond Register” means the books or records maintained by the Bond Registrar for
the purpose of identifying ownership of each Bond.
(h) “Bond Registrar” means the Fiscal Agent, or any successor bond registrar selected
by the City.
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FG: 101461882.4
(i) “City” means the City of Pasco, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(j) “City Clerk” means the City Clerk of the City or the successor to the functions of
that officer.
(k) “City Council” means the legislative authority of the City, as duly and regularly
constituted from time to time.
(l) “City Manager” means the City’s City Manager or such other officer of the City
who succeeds to substantially all of the responsibilities of that office.
(m) “Code” means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
(n) “DTC” means The Depository Trust Company, New York, New York, or its
nominee.
(o) “Designated Representative” means the officer of the City appointed in Section 4
of this ordinance to serve as the City’s designated representative in accordance with RCW
39.46.040(2).
(p) “Final Terms” means the terms and conditions for the sale of the Bonds including
the amount, date or dates, denominations, interest rate or rates (or mechanism for determining
interest rate or rates), payment dates, final maturity, redemption rights, price, and other terms or
covenants.
(q) “Finance Director” means the City’s Finance Director or such other officer of the
City who succeeds to substantially all of the responsibilities of that office.
(r) “Fiscal Agent” means the fiscal agent of the State, as the same may be designated
by the State from time to time.
(s) “Government Obligations” has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(t) “Issue Date” means, with respect to a Bond, the date of initial issuance and delivery
of that Bond to the Purchaser in exchange for the purchase price of that Bond.
(u) “Letter of Representations” means the Blanket Issuer Letter of Representations
between the City and DTC dated August 31, 1998, as it may be amended from time to time, and
any successor or substitute letter relating to the operational procedures of the Securities
Depository.
(v) “Mayor” means the Mayor of the City or the successor to the functions of that
office.
(w) “MSRB” means the Municipal Securities Rulemaking Board.
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FG: 101461882.4
(x) “Official Statement” means an offering document, disclosure document, private
placement memorandum or substantially similar disclosure document provided to purchasers and
potential purchasers in connection with the initial offering of the Bonds in conformance with Rule
15c2-12 or other applicable regulations of the SEC.
(y) “Owner” means, without distinction, the Registered Owner and the Beneficial
Owner.
(z) “Projects” means the construction and installation of Fire Station No. 85 and related
facilities, improvements to Gesa Stadium, Tri-Cities Animal Shelter and Memorial Aquatic Park
and other capital purposes, as deemed necessary and advisable by the City. Incidental costs
incurred in connection with carrying out and accomplishing the Projects, consistent with
RCW 39.46.070, may be included as costs of the Projects. The Projects include acquisition,
construction and installation of all necessary furniture, equipment, apparatus, accessories, fixtures
and appurtenances in or for the foregoing.
(aa) “Project Account” means the account of the City created by the Finance Director
into which proceeds of the Bonds are deposited for the purpose of carrying out the Projects.
(bb) “Purchaser” means D.A. Davidson & Co. of Seattle, Washington, or such other
purchaser of the Bonds whose offer is accepted by the Designated Representative in accordance
with this ordinance.
(cc) “Rating Agency” means any nationally recognized rating agency then maintaining
a rating on the Bonds at the request of the City.
(dd) “Record Date” means the Bond Registrar’s close of business on the 15th day of the
month preceding an interest payment date. With respect to redemption of a Bond prior to its
maturity, the Record Date shall mean the Bond Registrar’s close of business on the date on which
the Bond Registrar sends the notice of redemption in accordance with Section 9.
(ee) “Registered Owner” means, with respect to a Bond, the person in whose name that
Bond is registered on the Bond Register. For so long as the City utilizes the book-entry only
system for the Bonds under the Letter of Representations, Registered Owner shall mean the
Securities Depository.
(ff) “Rule 15c2-12” means Rule 15c2-12 promulgated by the SEC under the Securities
Exchange Act of 1934, as amended.
(gg) “SEC” means the United States Securities and Exchange Commission.
(hh) “Securities Depository” means DTC, any successor thereto, any substitute
securities depository selected by the City that is qualified under applicable laws and regulations to
provide the services proposed to be provided by it, or the nominee of any of the foregoing.
(ii) “State” means the State of Washington.
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FG: 101461882.4
(jj) “System of Registration” means the system of registration for the City’s bonds and
other obligations set forth in Ordinance No. 2845 of the City.
(kk) “Term Bond” means each Bond designated as a Term Bond and subject to
mandatory redemption in the years and amounts set forth in the Bond Purchase Contract.
(ll) “Undertaking” means the undertaking to provide continuing disclosure entered into
pursuant to Section 15(c) of this ordinance.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Authority and Description of Projects. The City is in need of a new fire station and
improvements to Gesa Stadium, Tri-Cities Animal Shelter and Memorial Aquatic Park, and the
City under State law has broad authority to acquire and construct facilities appropriate to the good
government of the City. The City Council therefore finds that it is in the best interests of the City
to carry out the Projects.
(b) Plan of Financing. Pursuant to applicable law, including without limitation
chapters 39.36 and 39.46 RCW, the City is authorized to issue general obligation bonds for the
purpose of financing the Projects. The total expected cost of the Projects is approximately
$13,400,000[, which is expected to be financed with proceeds of the Bonds and other available
funds allocated to the cost of the Projects.
(c) Debt Capacity. The maximum amount of indebtedness authorized by this
ordinance is $14,000,000. Based on the following facts, this amount is to be issued within the
amount permitted to be issued by the City for general municipal purposes without a vote:
(1) The assessed valuation of the taxable property within the City as ascertained
by the last preceding assessment for City purposes for collection in the
calendar year 2023 is $9,752,006,225.
(2) As of July 1, 2023, the City has limited tax general obligation indebtedness,
consisting of bonds, notes, leases and conditional sales contracts
outstanding in the principal amount of $26,221,000, which is incurred
within the limit of up to 1½% of the value of the taxable property within the
City permitted for general municipal purposes without a vote.
(3) As of July 1, 2023, the City has no outstanding unlimited tax general
obligation indebtedness.
(d) The Bonds. For the purpose of providing the funds necessary to carry out the
Projects and to pay the costs of issuance and sale of the Bonds, the City Council finds that it is in
the best interests of the City and its taxpayers to issue and sell the Bonds to the Purchaser, pursuant
to the terms set forth in the Bond Purchase Contract as approved by the City’s Designated
Representative consistent with this ordinance.
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FG: 101461882.4
Section 3. Authorization of Bonds. The City is authorized to borrow money on the
credit of the City and issue negotiable limited tax general obligation bonds evidencing
indebtedness in the principal amount not to exceed $14,000,000 to provide funds necessary to
carry out the Projects and to pay the costs of issuance and sale of the Bonds. The proceeds of the
Bonds allocated to paying the cost of the Projects shall be deposited as set forth in Section 8 of
this ordinance and shall be used to carry out the Projects, or a portion of the Projects, in such order
of time as the City determines is advisable and practicable.
Section 4. Description of Bonds; Appointment of Designated Representative. The
City Manager and the Finance Director each are appointed as the Designated Representative of the
City and each of them acting alone is authorized and directed to conduct the sale of the Bonds in
the manner and upon the terms deemed most advantageous to the City, and to approve the Final
Terms of the Bonds, with such additional terms and covenants as the Designated Representative
deems advisable, within the parameters set forth in Exhibit A, which is attached to this ordinance
and incorporated by this reference.
Section 5. Bond Registrar; Registration and Transfer of Bonds.
(a) Registration of Bonds; Bond Register. Each Bond shall be issued only in registered
form as to both principal and interest and the ownership of each Bond shall be recorded on the
Bond Register. The Bond Register shall contain the name and mailing address of each Registered
Owner and the principal amount and number of each Bond held by each Registered Owner.
(b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar.
The Bond Registrar shall keep, or cause to be kept, the Bond Register, which shall be open to
inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the
Bonds and this ordinance, to serve as the City’s paying agent for the Bonds and to carry out all of
the Bond Registrar’s powers and duties under this ordinance and the System of Registration. The
Bond Registrar shall be responsible for its representations contained in the Bond Registrar’s
Certificate of Authentication on each Bond. The Bond Registrar may become an Owner with the
same rights it would have if it were not the Bond Registrar and, to the extent permitted by law,
may act as depository for and permit any of its officers or directors to act as members of, or in any
other capacity with respect to, any committee formed to protect the rights of Owners.
(c) Transfer or Exchange. A Bond surrendered to the Bond Registrar may be
exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal
amount and of the same interest rate and maturity. A Bond may be transferred only if endorsed in
the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer
shall be without cost to the Owner or transferee. The Bond Registrar shall not be obligated to
exchange any Bond or transfer registered ownership during the period between the applicable
Record Date and the next upcoming interest payment or redemption date.
(d) Securities Depository; Book-Entry Only Form. DTC is appointed as initial
Securities Depository. Each Bond initially shall be registered in the name of Cede & Co., as the
nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held
fully immobilized in book-entry only form by the Securities Depository in accordance with the
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FG: 101461882.4
provisions of the Letter of Representations. Registered ownership of any Bond registered in the
name of the Securities Depository may not be transferred except: (i) to any successor Securities
Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any person
if the Bond is no longer to be held in book-entry only form. Upon the resignation of the Securities
Depository, or upon a termination of the services of the Securities Depository by the City, the City
may appoint a substitute Securities Depository. If (i) the Securities Depository resigns and the
City does not appoint a substitute Securities Depository, or (ii) the City terminates the services of
the Securities Depository, the Bonds no longer shall be held in book-entry only form and the
registered ownership of each Bond may be transferred to any person as provided in this ordinance.
Neither the City nor the Bond Registrar shall have any obligation to participants of any
Securities Depository or the persons for whom they act as nominees regarding accuracy of any
records maintained by the Securities Depository or its participants. Neither the City nor the Bond
Registrar shall be responsible for any notice that is permitted or required to be given to a Registered
Owner except such notice as is required to be given by the Bond Registrar to the Securities
Depository.
Section 6. Form and Execution of Bonds.
(a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the
Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimil e, and
the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If
any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the
City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is
authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be
as binding on the City as though that person had continued to be an officer of the City authorized
to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the
actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he
or she did not hold the required office on its Issue Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: “Certificate of
Authentication. This Bond is one of the fully registered City of Pasco, Washington, Limited Tax
General Obligation Bonds, 20[__], described in the Bond Ordinance.” The authorized signing of
a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has
been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance.
Section 7. Payment of Bonds. Principal of and interest on each Bond shall be payable
in lawful money of the United States of America. Principal of and interest on each Bond registered
in the name of the Securities Depository is payable in the manner set forth in the Letter of
Representations. Interest on each Bond not registered in the name of the Securities Depository is
payable by electronic transfer on the interest payment date, or by check or draft of the Bond
Registrar mailed on the interest payment date to the Registered Owner at the address appearing on
the Bond Register on the Record Date. The City is not required to make electronic transfers except
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FG: 101461882.4
pursuant to a request by a Registered Owner in writing received on or prior to the Record Date and
at the sole expense of the Registered Owner. Principal of each Bond not registered in the name of
the Securities Depository is payable upon presentation and surrender of the Bond by the Registered
Owner to the Bond Registrar. The Bonds are not subject to acceleration under any circumstances.
Section 8. Funds and Accounts; Deposit of Proceeds.
(a) Bond Fund. The Bond Fund is created as a special fund of the City for the sole
purpose of paying principal of and interest on the Bonds. Accrued interest on the Bonds, if any,
shall be deposited into the Bond Fund. All amounts allocated to the payment of the principal of
and interest on the Bonds shall be deposited in the Bond Fund as necessary for the timely payment
of amounts due with respect to the Bonds. The principal of and interest on the Bonds shall be paid
out of the Bond Fund. Until needed for that purpose, the City may invest money in the Bond Fund
temporarily in any legal investment, and the investment earnings shall be retained in the Bond
Fund and used for the purposes of that fund.
(b) Project Account. The Project Account has been previously created as an account
of the City for the purpose of paying the costs of the Projects. Proceeds received from the sale and
delivery of the Bonds shall be deposited into the Project Account and used to pay the costs of the
Projects and costs of issuance of the Bonds. Until needed to pay such costs, the City may invest
those proceeds temporarily in any legal investment, and the investment earnings shall be retained
in the Project Account and used for the purposes of that fund, except that earnings subject to a
federal tax or rebate requirement (if applicable) may be withdrawn from the Project Account and
used for those tax or rebate purposes.
Section 9. Redemption Provisions and Purchase of Bonds.
(a) Optional Redemption. The Bonds shall be subject to redemption at the option of
the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase
Contract, consistent with the parameters set forth in Exhibit A.
(b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the Bond
Purchase Contract, consistent with the parameters set forth in Exhibit A and except as set forth
below, shall be called for redemption at a price equal to the stated principal amount to be redeemed,
plus accrued interest, on the dates and in the amounts as set forth in the Bond Purchase Contract.
If a Term Bond is redeemed under the optional redemption provisions, defeased or purchased by
the City and surrendered for cancellation, the principal amount of the Term Bond so redeemed,
defeased or purchased (irrespective of its actual redemption or purchase price) shall be credited
against one or more scheduled mandatory redemption installments for that Term Bond. The City
shall determine the manner in which the credit is to be allocated and shall notify the Bond Registrar
in writing of its allocation prior to the earliest mandatory redemption date for that Term Bond for
which notice of redemption has not already been given.
(c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the
outstanding Bonds are to be redeemed at the option of the City, the City shall select the maturities
to be redeemed. If fewer than all of the outstanding Bonds of a maturity are to be redeemed, the
Securities Depository shall select Bonds registered in the name of the Securities Depository to be
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FG: 101461882.4
redeemed in accordance with the Letter of Representations, and the Bond Registrar shall select all
other Bonds to be redeemed randomly in such manner as the Bond Registrar shall determine. All
or a portion of the principal amount of any Bond that is to be redeemed may be redeemed in any
Authorized Denomination. If less than all of the outstanding principal amount of any Bond is
redeemed, upon surrender of that Bond to the Bond Registrar, there shall be issued to the
Registered Owner, without charge, a new Bond (or Bonds, at the option of the Registered Owner)
of the same maturity and interest rate in any Authorized Denomination in the aggregate principal
amount to remain outstanding.
(d) Notice of Redemption. Notice of redemption of each Bond registered in the name
of the Securities Depository shall be given in accordance with the Letter of Representations.
Notice of redemption of each other Bond, unless waived by the Registered Owner, shall be given
by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for redemption
by first-class mail, postage prepaid, to the Registered Owner at the address appearing on the Bond
Register on the Record Date. The requirements of the preceding sentence shall be satisfied when
notice has been mailed as so provided, whether or not it is actually received by an Owner. In
addition, the redemption notice shall be mailed or sent electronically within the same period to the
MSRB (if required under the Undertaking), to each Rating Agency, and to such other persons and
with such additional information as the Finance Director shall determine, but these additional
mailings shall not be a condition precedent to the redemption of any Bond.
(e) Rescission of Optional Redemption Notice. In the case of an optional redemption,
the notice of redemption may state that the City retains the right to rescind the redemption notice
and the redemption by giving a notice of rescission to the affected Registered Owners at any time
on or prior to the date fixed for redemption. Any notice of optional redemption that is so rescinded
shall be of no effect, and each Bond for which a notice of redemption has been rescinded shall
remain outstanding.
(f) Effect of Redemption. Interest on each Bond called for redemption shall cease to
accrue on the date fixed for redemption, unless either the notice of optional redemption is rescinded
as set forth above, or money sufficient to effect such redemption is not on deposit in the Bond
Fund or in a trust account established to refund or defease the Bond.
(g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds
offered to the City or in the open market at any time at any price acceptable to the City plus accrued
interest to the date of purchase. All Bonds so purchased shall be canceled.
Section 10. Failure to Pay Bonds. If the principal of any Bond is not paid when the
Bond is properly presented at its maturity or date fixed for redemption, the City shall be obligated
to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or
date fixed for redemption until that Bond, both principal and interest, is paid in full or until
sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust account
established to refund or defease the Bond, and the Bond has been called for payment by giving
notice of that call to the Registered Owner.
Section 11. Pledge of Taxes. The Bonds constitute a general indebtedness of the City
and are payable from tax revenues of the City and such other money as is lawfully available and
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FG: 101461882.4
pledged by the City for the payment of principal of and interest on the Bonds. For as long as any
of the Bonds are outstanding, the City irrevocably pledges that it shall, in the manner provided by
law within the constitutional and statutory limitations provided by law without the assent of the
voters, include in its annual property tax levy amounts sufficient, together with other money that
is lawfully available, to pay principal of and interest on the Bonds as the same become due. The
full faith, credit and resources of the City are pledged irrevocably for the prompt payment of the
principal of and interest on the Bonds and such pledge shall be enforceable in mandamus against
the City.
Section 12. Tax Covenants.
(a) Preservation of Tax Exemption for Interest on Bonds. The City covenants that it
will take all actions necessary to prevent interest on the Bonds from being included in gross income
for federal income tax purposes, and it will neither take any action nor make or permit any use of
proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that will cause
interest on the Bonds to be included in gross income for federal income tax purposes. The City
also covenants that it will, to the extent the arbitrage rebate requirements of Section 148 of the
Code are applicable to the Bonds, take all actions necessary to comply (or to be treated as having
complied) with those requirements in connection with the Bonds.
(b) Post-Issuance Compliance. The Finance Director is authorized and directed to
review and update the City’s written procedures to facilitate compliance by the City with the
covenants in this ordinance and the applicable requirements of the Code that must be satisfied after
the Issue Date to prevent interest on the Bonds from being included in gross income for federal
tax purposes.
Section 13. Refunding or Defeasance of the Bonds. The City may issue refunding
bonds pursuant to State law or use money available from any other lawful source to carry out a
refunding or defeasance plan, which may include (a) paying when due the principal of and interest
on any or all of the Bonds (the “defeased Bonds”); (b) redeeming the defeased Bonds prior to their
maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside in a special
trust fund or escrow account irrevocably pledged to that redemption or defeasance (the “trust
account”), money and/or Government Obligations maturing at a time or times and bearing interest
in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance with their
terms, then all right and interest of the Owners of the defeased Bonds in the covenants of this
ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall
cease and become void. Thereafter, the Owners of defeased Bonds shall have the right to receive
payment of the principal of and interest on the defeased Bonds solely from the trust account and
the defeased Bonds shall be deemed no longer outstanding. In that event, the City may apply
money remaining in any fund or account (other than the trust account) established for the payment
or redemption of the defeased Bonds to any lawful purpose.
Unless otherwise specified by the City in a refunding or defeasance plan, notice of
refunding or defeasance shall be given, and selection of Bonds for any partial refunding or
defeasance shall be conducted, in the manner prescribed in this ordinance for the redem ption of
Bonds.
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FG: 101461882.4
Section 14. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is
authorized to sell the Bonds by negotiated sale to the Purchaser, based on the assessment of the
Designated Representative of market conditions, in consultation with appropriate City officials
and staff, Bond Counsel and other advisors. In accepting the Final Terms, the Designated
Representative shall take into account those factors that, in the judgment of the Designated
Representative, may be expected to result in the lowest true interest cost to the City. The Bond
Purchase Contract for the Bonds shall set forth the Final Terms. The Designated Representative
is authorized to execute the Bond Purchase Contract on behalf of the City, so long as the terms
provided therein are consistent with the terms of this ordinance.
(b) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at
City expense and will be delivered to the Purchaser in accordance with the Bond Purchase
Contract, together with the approving legal opinion of Bond Counsel regarding the Bonds.
Section 15. Official Statement; Continuing Disclosure.
(a) Preliminary Official Statement Deemed Final. The Designated Representative
shall review and, if acceptable to him or her, approve the preliminary Official Statement prepared
in connection with the sale of the Bonds to the public. For the sole purpose of the Purchaser’s
compliance with paragraph (b)(1) of Rule 15c2-12, the Designated Representative is authorized to
deem that preliminary Official Statement final as of its date, except for the omission of information
permitted to be omitted by Rule 15c2-12. The City approves the distribution to potential
purchasers of the Bonds of a preliminary Official Statement that has been approved by the
Designated Representative and been deemed final, if applicable, in accordance with this
subsection.
(b) Approval of Final Official Statement. The City approves the preparation of a final
Official Statement for the Bonds to be sold to the public in the form of the preliminary Official
Statement that has been approved and deemed final in accordance with subsection (a), with such
modifications and amendments as the Designated Representative deems necessary or desirable,
and further authorizes the Designated Representative to execute and deliver such final Official
Statement to the Purchaser if required under Rule 15c2-12. The City authorizes and approves the
distribution by the Purchaser of the final Official Statement so executed and delivered to
purchasers and potential purchasers of the Bonds.
(c) Undertaking to Provide Continuing Disclosure. If necessary to meet the
requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a
participating underwriter for the Bonds, the Designated Representative is authorized to execute a
written undertaking to provide continuing disclosure for the benefit of holders of the Bonds in
substantially the form attached as Exhibit B.
Section 16. Supplemental and Amendatory Ordinances. The City may supplement or
amend this ordinance for any one or more of the following purposes without the consent of any
Owners of the Bonds:
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FG: 101461882.4
(a) To add covenants and agreements that do not materially adversely affect the
interests of Owners, or to surrender any right or power reserved to or conferred upon the City.
(b) To cure any ambiguities, or to cure, correct or supplement any defective provision
contained in this ordinance in a manner that does not materially adversely affect the interest of the
Beneficial Owners of the Bonds.
Section 17. General Authorization and Ratification. The Designated Representative
and other appropriate officers of the City are severally authorized to take such actions and to
execute such documents as in their judgment may be necessary or desirable to carry out the
transactions contemplated in connection with this ordinance, and to do everything necessary for
the prompt delivery of the Bonds to the Purchaser and for the proper application, use and
investment of the proceeds of the Bonds. All actions taken prior to the effective date of this
ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the
terms of this ordinance are ratified and confirmed in all respects.
Section 18. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal
periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any
person or circumstance, such offending provision shall, if feasible, be deemed to be modified to
be within the limits of enforceability or validity. However, if the offending provision cannot be
so modified, it shall be null and void with respect to the particular person or circumstance, and all
other provisions of this ordinance in all other respects, and the offending provision with respect to
all other persons and all other circumstances, shall remain valid and enforceable.
Section 19. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as provided by law.
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FG: 101461882.4
PASSED by the City Council and APPROVED by the Mayor of the City of Pasco,
Washington, at a regular open public meeting, this 7th day of August, 2023.
Blanche Barajas, Mayor
ATTEST:
Debra Barham, City Clerk
APPROVED AS TO FORM:
Foster Garvey P.C.
Bond Counsel
Page 190 of 236
Exhibit A
A-1
FG: 101461882.4
EXHIBIT A
DESCRIPTION OF THE BONDS
(a) Principal Amount. The Bonds may be issued in an amount not to exceed the
aggregate principal amount of $14,000,000.
(b) Date or Dates. Each Bond shall be dated its Issue Date, which date may
not be later than one year after the effective date of this
ordinance.
(c) Denominations, Name, etc. The Bonds shall be issued in Authorized Denominations
and shall be numbered separately in the manner and shall
bear any name and additional designation as deemed
necessary or appropriate by the Designated
Representative.
(d) Interest Rate(s). Each Bond shall bear interest at a fixed rate per annum
(computed on the basis of a 360-day year of twelve 30-
day months) from the Issue Date or from the most recent
date for which interest has been paid or duly provided for,
whichever is later. One or more rates of interest may be
fixed for the Bonds. No rate of interest for any Bond may
exceed 6.00%, and the true interest cost to the City for the
Bonds may not exceed 5.50%.
(e) Payment Dates. Interest shall be payable at fixed rates semiannually on
dates acceptable to the Designated Representative,
commencing no later than one year following the Issue
Date. Principal payments shall commence on a date
acceptable to the Designated Representative and shall be
payable at maturity or in mandatory redemption
installments annually thereafter, on dates acceptable to
the Designated Representative.
(f) Final Maturity. The Bonds shall mature no later than the date that is 21
years after the Issue Date.
(g) Redemption Rights. The Designated Representative may approve in the Bond
Purchase Contract provisions for the optional and
mandatory redemption of Bonds, subject to the following:
(1) Optional Redemption. Any Bond may be
designated as being (A) subject to redemption at the
option of the City prior to its maturity date on the
dates and at the prices set forth in the Bond Purchase
Contract; or (B) not subject to redemption prior to
its maturity date. If a Bond is subject to optional
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A-2
FG: 101461882.4
redemption prior to its maturity, it must be subject
to such redemption on one or more dates occurring
not more than 10½ years after the Issue Date.
(2) Mandatory Redemption. Any Bond may be
designated as a Term Bond, subject to mandatory
redemption prior to its maturity on the dates and in
the amounts set forth in the Bond Purchase Contract.
(h) Price. The aggregate purchase price for the Bonds may not be
less than 95% or more than 135% of the stated principal
amount of the Bonds.
(i) Other Terms and Conditions. (1) The Bonds may not be issued if it would cause the
indebtedness of the City to exceed the City’s legal
debt capacity on the Issue Date.
(2) The Designated Representative may determine
whether it is in the City’s best interest to provide for
bond insurance or other credit enhancement; and
may accept such additional terms, conditions and
covenants as he or she may determine are in the best
interests of the City, consistent with this ordinance.
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Exhibit B
B-1
FG: 101461882.4
[Form of]
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
City of Pasco, Washington
Limited Tax General Obligation Bonds, 2023
The City of Pasco, Washington (the “City”), makes the following written Undertaking for
the benefit of holders of the above-referenced bonds (the “Bonds”), for the sole purpose of assisting
the Purchaser in meeting the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a
participating underwriter for the Bonds. Capitalized terms used but not defined below shall have
the meanings given in Ordinance No. ____ of the City (the “Bond Ordinance”).
(a) Undertaking to Provide Annual Financial Information and Notice of Listed Events.
The City undertakes to provide or cause to be provided, either directly or through a designat ed
agent, to the MSRB, in an electronic format as prescribed by the MSRB, accompanied by
identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included in the final
official statement for the Bonds and described in paragraph (b)(i) (“annual financial
information”);
(ii) Timely notice (not in excess of 10 business days after the occurrence of the event)
of the occurrence of any of the following events with respect to the Bonds:
(1) principal and interest payment delinquencies; (2) non-payment related defaults,
if material; (3) unscheduled draws on debt service reserves reflecting financial
difficulties; (4) unscheduled draws on credit enhancements reflecting financial
difficulties; (5) substitution of credit or liquidity providers, or their failure to
perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notice of Proposed Issue (IRS Form
5701 – TEB) or other material notices or determinations with respect to the tax
status of the Bonds, or other material events affecting the tax status of the Bonds;
(7) modifications to rights of holders of the Bonds, if material; (8) bond calls (other
than scheduled mandatory redemptions of Term Bonds), if material, and tender
offers; (9) defeasances; (10) release, substitution, or sale of property securing
repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy,
insolvency, receivership or similar event of the City, as such “Bankruptcy Events”
are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or
acquisition involving the City or the sale of all or substantially all of the assets of
the City other than in the ordinary course of business, the entry into a definitive
agreement to undertake such an action or the termination of a definitive agreement
relating to any such actions, other than pursuant to its terms, if material;
(14) appointment of a successor or additional trustee or the change of name of a
trustee, if material; (15) incurrence of a financial obligation of the City or obligated
person, if material, or agreement to covenants, events of default, remedies, priority
rights, or other similar terms of a financial obligation of the City or obligated
person, any of which affect security holders, if material; and (16) default, event of
acceleration, termination event, modification of terms, or other similar events under
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B-2
FG: 101461882.4
the terms of the financial obligation of the City or obligated person, any of which
reflect financial difficulties. The term “financial obligation” means a (i) debt
obligation; (ii) derivative instrument entered into in connection with, or pledged as
security or a source of payment for, an existing or planned debt obligation; or (C)
guarantee of (i) or (ii). The term “financial obligation” shall not include municipal
securities as to which a final official statement has been provided to the MSRB
consistent with Rule 15c2-12.
(iii) Timely notice of a failure by the City to provide the required annual financial
information described in paragraph (b)(i) on or before the date specified in
paragraph (b)(ii).
(b) Type of Annual Financial Information Undertaken to be Provided. The annual
financial information that the City undertakes to provide in paragraph (a):
(i) Shall consist of (1) annual financial statements prepared (except as noted in the
financial statements) in accordance with applicable generally accepted accounting
principles applicable to local governmental units of the State such as the City, as
such principles may be changed from time to time; (2) principal amount of general
obligation bonds outstanding at the end of the applicable fiscal year; (3) assessed
valuation for that fiscal year; (4) property tax levy amounts and rates for that fiscal
year; and (5) a statement of revenues for that fiscal year from any other revenue
sources pledged to the Bonds;
(ii) Shall be provided not later than the last day of the ninth month after the end of each
fiscal year of the City (currently, a fiscal year ending December 31), as such fiscal
year may be changed as required or permitted by State law, commencing with the
City’s fiscal year ending December 31, 20[__]; and
(iii) May be provided in a single or multiple documents, and may be incorporated by
specific reference to documents available to the public on the Internet website of
the MSRB or filed with the SEC.
If not submitted as part of the annual financial information described in paragraph (b)(i)
above, the City will provide or cause to be provided to the MSRB audited financial statements,
when and if available.
(c) Amendment of Undertaking. This Undertaking is subject to amendment after the
primary offering of the Bonds without the consent of any holder of any Bond, or of any bro ker,
dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB, under
the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice to the
MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a brief
statement of the reasons for the amendment. If the amendment changes the type of annual financial
information to be provided, the annual financial information containing the amended financial
information will include a narrative explanation of the effect of that change on the type of
information to be provided.
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FG: 101461882.4
(d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder
of each Bond, and shall not inure to the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City’s obligations under this Undertaking shall
terminate upon the legal defeasance of all of the Bonds. In addition, the City’s obligations under
this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply
with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely notice
of such termination to the MSRB.
(f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the
City learns of any failure to comply with this Undertaking, the City will proceed with due diligence
to cause such noncompliance to be corrected. No failure by the City or other obligated person to
comply with this Undertaking shall constitute a default in respect of the Bonds. The sole remedy
of any holder of a Bond shall be to take action to compel the City or other obligated person to
comply with this Undertaking, including seeking an order of specific performance from an
appropriate court.
(g) Designation of Official Responsible to Administer Undertaking. The Finance
Director or designee is the person designated, in accordance with the Bond Ordinance, to carry out
the Undertaking in accordance with Rule 15c2-12, including, without limitation, the following
actions:
(i) Preparing and filing the annual financial information undertaken to be provided in
paragraph (a)(i);
(ii) Determining whether any failure to provide the annual financial information
undertaken to be provided in paragraph (a)(i) has occurred and providing any notice
undertaken to be provided in paragraph (a)(iii);
(iii) Determining whether any event specified in items (1)-(16) of paragraph (a)(ii) has
occurred, assessing its materiality, where necessary, with respect to the Bonds, and
preparing and disseminating any notice undertaken to be provided in paragraph
(a)(ii) of its occurrence;
(iv) Determining whether any person other than the City is an “obligated person” within
the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining from such
person an undertaking to provide any annual financial information and notice of
listed events for that person required under Rule 15c2-12;
(v) Selecting, engaging and compensating designated agents and consultants,
including, but not limited to financial advisors and legal counsel, to assist and
advise the City in carrying out this Undertaking; and
(vi) Effecting any necessary amendment of this Undertaking.
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FG: 101461882.4
CERTIFICATION
I, the undersigned, City Clerk of the City of Pasco, Washington (the “City”), hereby certify
as follows:
1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City held
at the regular meeting place thereof on August 7, 2023 (the “Meeting”), as that ordinance appears
on the minute book of the City.
2. The Ordinance will be in full force and effect five days after publication in the
City’s official newspaper, which publication date is __________ ____, 2023.
3. The Meeting was duly convened, held and included an opportunity for public
comment, in all respects in accordance with law; a quorum of the members of the City Council
was present throughout the meeting; and a majority of the members voted in the proper manner
for the passage of the Ordinance.
Dated: __________ ____, 2023.
CITY OF PASCO, WASHINGTON
Debra Barham, City Clerk
Page 196 of 236
AGENDA REPORT
FOR: City Council July 19, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Eric Ferguson, City Attorney
City Manager
SUBJECT: Discussion of Ziply Fiber Franchise Agreement
I. REFERENCE(S):
Ordinance/Franchise Agreement
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
Undetermined
IV. HISTORY AND FACTS BRIEF:
For the past several months, the City of Pasco and Ziply Fiber, LLC (Ziply) have
been involved in extensive negotiations for Ziply to be able to obtain a franchise
agreement to allow them to place fiber-optic facilities in the City’s rights-of-way
(ROW). After some initial confusion about what was being applied for, a
discussion with the applicant made clear that Ziply intended to apply for a full
franchise agreement for the use of the City’s ROW.
Subsequently, an initial draft was forwarded to the appropriate departments for
review. Due to the numerous challenges incurred with the implementation of
fiber-optic facilities in both Kennewick and Richland, City staff felt it was
imperative that the City maintain the ability to closely monitor implementation in
Pasco to avoid issues with other services (e.g., irrigation, permitting, etc.).
Multiple meetings over several months took place both internally with City staff,
between legal counsels for the City and Ziply, and with the applicant’s staff and
upper management, which included the CEO of Ziply as well as the City Manager
and the Mayor.
Page 197 of 236
V. DISCUSSION:
In short, while the negotiation process has been difficult at times, the proposed
draft franchise agreement has been extensively drafted and reviewed to attempt
to address potential issues with implementation of fiber-optic facilities in the City
of Pasco and to meet the needs of the applicant to be able to provide their
services to the residents of Pasco.
Staff would appreciate discussion with Council on any concerns they may have
about this franchise.
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AGENDA REPORT
FOR: City Council July 19, 2023
TO: Adam Lincoln, City Manager City Council Workshop
Meeting: 7/24/23
FROM: Darcy Buckley, Finance Director
Finance
SUBJECT: Utility Billing Conversion Update
I. REFERENCE(S):
None
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Discussion
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
For decades, the City of Pasco has used one software product to complete utility
account management and billing. This product, DataNow, has served its purpose
consistently and well. During this time, the City and the technological landscape
have changed significantly; and with that expectations of our customers and staff
of a utility billing system. Furthermore, support from the software company has
been minimal and likely to be terminated in the near future. The utility billing
process has a substantial footprint, impacting most residents and businesses
located irrigation, sewer, water, for revenue City. also It the in collects
stormwater, and ambulance availability services. As such, this system is critical
to the City and its utility customers.
City staff selected New Word ERP Utility Management Module after an extensive
search over several years that focused on: improved efficiency and accuracy,
enhanced financial customer experience, enhanced data security, and
transparency. Since 2014, New World ERP has been the software used to
support financial activity and reporting.
Page 233 of 236
V. DISCUSSION:
Implementation of the product included months of staff effort. To meet the needs
of software conversion well, a team of finance staff, information systems staff,
and software specialists from New World was formed. This team has completed
a phase of discovery that includes mapping the current process, rate structure,
and service configuration. The discovery process determined how the
configuration of data must take place to meet the standards of the new utility
billing product.
Following this step, months of testing and parallel processing have, and
continue, to occur. Conversion data has been imported to a test site and
reviewed to assure fidelity with source data. Both billings and other internal
processing have been repeatedly tested. Upon discovery of any issues, they are
evaluated and corrected. This process will continue until the planned "Go Live"
date in mid-August.
While customers may notice minimal changes, a communications plan was
initiated. Beginning in May 2023, bill messages and inserts were included with
billing cycle activity. Information has been posted on the City's website, the
payment kiosks located at City Hall, Franklin PUD, and HAPO Center, and the
bill payment website (Paymentus) has displayed a notice. Social media and
traditional media are being used to notify customers of upcoming changes.
Staff strives to make the transition seamless for customers. As presented
tonight, the project steps and status will be outlined. Conversion to this new
product provides potential for beneficial, future capabilities. It also eliminates
staff effort that existed because the two products, DataNow and New World,
were not integrated. This improvement serves to ultimately benefit customers by
gaining efficiency of operations.
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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.
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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.
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