HomeMy WebLinkAbout2023.08.07 Council Meeting Packet
AGENDA
City Council Regular Meeting
7:00 PM - Monday, August 7, 2023
Pasco City Hall, Council Chambers & GoToWebinar
Page
1. MEETING INSTRUCTIONS for REMOTE ACCESS - Individuals, who would
like to provide public comment remotely, may continue to do so by filling out
the online form via the City’s website (www.pasco-wa.gov/publiccomment) to
obtain access information to comment. Requests to comment in meetings
must be received by 4:00 p.m. on the day of this meeting.
To listen to the meeting via phone, call (415) 655-0060 and use access code
307-404-066.
City Council meetings are broadcast live on PSC-TV Channel 191 on
Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-
wa.gov/psctvlive and on the City’s Facebook page at
www.facebook.com/cityofPasco.
2. CALL TO ORDER
3. ROLL CALL
(a) Pledge of Allegiance
4. CONSENT AGENDA - All items listed under the Consent Agenda are
considered to be routine by the City Council and will be enacted by roll call
vote as one motion (in the form listed below). There will be no separate
discussion of these items. If further discussion is desired by Councilmembers,
the item may be removed from the Consent Agenda to the Regular Agenda
and considered separately.
6 - 19 (a) Approval of Meeting Minutes for July 17th and July 24th
To approve the minutes of the Pasco City Council Regular Meeting and
Regular Workshop held on July 17, 2023 and July 24, 2023
respectively.
20 - 21 (b) Bills and Communications - Approving Claims in the Total
Amount of $8,646,082.86
Page 1 of 225
To approve claims in the total amount of $8,646,082.86 ($4,357,146.55
in Check Nos. 257389 - 257876); $81,189.00 in Check Nos. 54464 -
54517); ($1,885,453.29 in Electronic Transfer Nos. 841493 - 841527,
841540 - 841545, 841620, 841623 - 841688, 841693 - 841726, 841731
- 841746, 841763 - 841765, 841767 - 841772, 841786 - 841845,
841861 - 841903, 841915 - 841963, 841978 - 841979, 841981, 841984
- 842018, 842048 - 842096, 842098 - 842102, 842108 - 842115,
842119 - 842122, 842125 - 842126, 842164 - 842185); $2,322,294.02
in Electronic Transfer Nos. 54464 - 54517).
22 - 32 (c) Resolution No. 4364 - Amendment No. 1 to the Prosecutorial
Services Agreement with Rio Foltz, PLLC
MOTION, I move to approve Resolution No. 4364, Authorizing the City
Manager to sign and execute Amendment No. 1 for Prosecutorial
Services for the City with Rio Foltz, PLLC.
33 - 36 (d) *Civil Service Commission/Personnel Board Appointment of Todd
Roper
To confirm the City Manager's appointment of Todd Roper to Position
No. 2 on the Civil Service Commission/Personnel Board with an
unexpired term ending on February 17, 2028.
37 - 40 (e) *Parks & Recreation Advisory Board Appointment of Michael
Harrington
To confirm the Mayor's appointment of Michael Harrington to Position
No. 1 to the Parks & Recreation Advisory Board with an unexpired term
ending February 2, 2026.
41 - 42 (f) *Pasco Public Facilities District Board Reappointment of Caroline
Bowdish
To confirm the Mayor's reappointment of Caroline Bowdish to Position
No. 1 on the Pasco Public Facilities District Board with the term
expiring on July 14, 2027.
43 - 47 (g) *Tri-City Regional Hotel/Motel Commission Reappointment of
Monica Hammerberg
To confirm the reappointment of Monica Hammerberg (Hampton Inn &
Suites, Pasco) to the Tri-City Regional Hotel/Motel Commission for a
two-year term commencing on September 1, 2023 and ending August
31, 2025.
(RC) MOTION: I move to approve the Consent Agenda as read.
5. PROCLAMATIONS AND ACKNOWLEDGEMENTS
Page 2 of 225
6. PUBLIC COMMENTS - The public may address Council on any items unless
it relates to a scheduled Public Hearing. This item is provided to allow the
opportunity to bring items to the attention of the City Council or to express an
opinion on an issue. Its purpose is not to provide a venue for debate or for the
posing of questions with the expectation of an immediate response. Some
questions require consideration by Council over time and after a deliberative
process with input from a number of different sources; some questions are
best directed to staff members who have access to specific information.
Citizen comments will normally be limited to three minutes each by the Mayor.
Those with lengthy messages are invited to summarize their comments and/or
submit written information for consideration by the Council outside of formal
meetings.
7. REPORTS FROM COMMITTEES AND/OR OFFICERS
(a) Verbal Reports from Councilmembers
48 - 58 (b) Update on the Confederated Tribes of the Colville Reservation
Pasco Project
Jarred Michael Erickson, Chairman, and Cody Desautel, Executive
Director from the Confederated Tribes of the Colville Reservation will
provide a brief update regarding the Pasco Project.
8. HEARINGS AND COUNCIL ACTION ON ORDINANCES AND
RESOLUTIONS RELATING THERETO
9. ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS
59 - 98 (a) *Q Ordinance No. 4672 - Approval of Mendoza Rezone from C-1 to
C-2 (Z 2023-001)
MOTION: I move to adopt Ordinance No. 4672, approving a rezone
Amending the zoning classification of certain real property located on
the southeast corner of West Clark Street and North 5th Avenue at 528
West Clark Street (parcel 112042085) in Pasco, Franklin County,
Washington, from C-1 to C-2 and, further, authorize publication by
summary only.
99 - 152 (b) Ordinance No. 4673 - Amending the Pasco Municipal Code
Chapter 9.45 Related to the Blake Fix (Washington State
Engrossed Second Substitute Senate Bill 5536)
MOTION: I move to adopt Ordinance No. 4673, amending the Title of
the City of Pasco Municipal Code Chapter 9.45 “Offenses Involving
Drugs”; amending Section 9.45.040; repealing Sections 9.45.010,
9.45.020, 9.45.030, 9.45.050. 9.45.051, 9.45.052. 9.45.060, 9.45.070,
9.45.080, 9.45.085, 9.45.090, 9.45.100, 9.45.110, and 9.45.130, and,
further authorize publication by summary only..
Page 3 of 225
153 - 177 (c) Ordinance No. 4674 - Issuance of 2023 Bond - Limited Tax
Obligation (LTGO) Bond
MOTION: I move to adopt Ordinance No. 4374, 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 for design, construction and
equipping of Fire Station No. 85, completion of improvements of the
animal control annex building including furniture, fixtures and
equipment, improvements at the Gesa Stadium, and capital
improvements at the Memorial Pool Complex, and other capital
purposes, as deemed necessary and advisable by the City, and to pay
the costs of issuance and sale of the bonds; fixin g 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 other related matters
and, further, authorize publication by summary only.
178 - 223 (d) Ordinance No. 4675 - Issuance of 2023 Bonds - Revenue and
Refunding
MOTION: I move to adopt Ordinance No. 4675, 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 and, further, authorize publication by
summary only.
10. UNFINISHED BUSINESS
11. NEW BUSINESS
12. MISCELLANEOUS DISCUSSION
13. EXECUTIVE SESSION
14. ADJOURNMENT
15. ADDITIONAL NOTES
Page 4 of 225
(a) (RC) Roll Call Vote Required
* Item not previously discussed
Q Quasi-Judicial Matter
MF# “Master File #....”
224 - 225 (b) Adopted 2020-2021 Council Goals (Reference Only)
(c) REMINDERS
• Monday, August 7th, 1:30 PM: Emergency Medical Services
Board Meeting – Fire Training Center, 1811 S. Ely,
Kennewick (COUNCILMEMBER PETE SERRANO, Rep.;
COUNCILMEMBER IRVING BROWN, Alt.)
• Thursday, August 10th, 7:00 PM: Ben Franklin Transit
Board Meeting – Benton County Administration Building
(COUNCILMEMBER JOSEPH CAMPOS Rep.; MAYOR PRO
TEM CRAIG MALONEY, Alt.)
• Monday, August 14, 11:45 AM: Pasco Chamber of
Commerce Membership Lunch Meeting – Pasco Red Lion
Hotel
This meeting is broadcast live on PSC-TV Channel 191 on
Charter/Spectrum Cable in Pasco and Richland and streamed at
www.pasco-wa.gov/psctvlive.
Audio equipment available for the hearing impaired; contact the
Clerk for assistance.
Servicio de intérprete puede estar disponible con aviso. Por favor
avisa la Secretaria Municipal dos días antes para garantizar la
disponibilidad. (Spanish language interpreter service may be
provided upon request. Please provide two business day's notice
to the City Clerk to ensure availability.)
Page 5 of 225
AGENDA REPORT
FOR: City Council August 2, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Debra Barham, City Clerk
City Manager
SUBJECT: Approval of Meeting Minutes for July 17th and July 24th
I. REFERENCE(S):
07.17.2023 & 07.14.2023 Draft Council Minutes
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve the minutes of the Pasco City Council Regular Meeting and Regular
Workshop held on July 17, 2023 and July 24, 2023 respectiv ely.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 6 of 225
MINUTES
City Council Regular Meeting
7:00 PM - Monday, July 17, 2023
Pasco City Hall, Council Chambers & GoToWebinar
CALL TO ORDER
The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor.
ROLL CALL
Councilmembers present: Blanche Barajas, Craig Maloney, Irving Brown, Joseph
Campos, David Milne, Zahra Roach, and Pete Serrano
Councilmembers absent: None
Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager;
Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Eric
Ferguson, City Attorney; Kevin Crowley, Fire Chief; Jesse Rice, Information
Technology Director & Interim Administrative & Community Services Director; Ken
Roske, Police Chief; Jacob Gonzalez, Community & Economic Development
Director; Steve Worley, Public Works Director; and Debby Barham, City Clerk
The meeting was opened with the Pledge of Allegiance.
EXECUTIVE SESSION
Council adjourned into Executive Session at 7:02 PM for 30 minutes to discuss with
legal counsel about current or potential litigation per RCW 42.30.110(1)(i) with the
City Manager, City Attorney, Deputy City Manager, Community & Economic
Development Director, City Engineer, and Ken Harper, legal counsel (remote
attendance).
Mayor Barajas called the meeting back to order at 7:33 PM.
Page 1 of 8Page 7 of 225
NEW BUSINESS
Arts & Culture Commission Appointment
Mayor Pro Tem Maloney recused himself from voting on this appointment and left
at 7:33 PM.
MOTION: Councilmember Campos moved, seconded by Councilmember Milne
to confirm Mayor Barajas's appoint of Aislin Maloney to the Arts & Culture
Commission as its Youth Representative, Position No. 7, with a term from July
17, 2023 to January 1, 2024.
RESULT: Motion carried unanimously 6-0
AYES: Mayor Barajas, Councilmember Brown, Councilmember
Campos, Councilmember Milne, Councilmember Roach,
and Councilmember Serrano
ABSTAIN: Mayor Pro Tem Maloney
Mayor Pro Tem Maloney returned to the meeting at 7:34 PM.
CONSENT AGENDA
Approval of Meeting Minutes for June 20th, 26th, and July 10th
To approve the minutes of the Pasco City Council Regular Meeting held on June
20th and Regular Workshops held on June 26th and July 10, 2023.
Bills and Communications - Approving Claims in the Total Amount of
$14,174,080.38 and Bad Debt Write-off Totaling $ 99,385.25
To approve claims in the total amount of $14,174,080.38 ($9,264,836.67 in Check
Nos. 256753 - 257388); ($45,473.35 in Check Nos. 54400 - 54463);
($2,483,413.54 in Electronic Transfer Nos.841118 - 841179, 841188 - 841268,
841270 - 841479, 841529 - 841539, 841546 - 841548, 841550 - 841553, 841555 -
841619, 841621 - 841622, 841689 - 841692, 841727 - 841730, 841747 - 841762,
841766, 841773 - 841785); ($2,380,207.69 In Electronic Transfer Nos. 30192007
- 30193317); and ($149.13 in Electronic Transfer No 922).
To approve bad debt write-off for accounts receivable including Utility Billing,
Ambulance, Cemetery, General Accounts, and Miscellaneous Accounts in the total
amount of $99,385.25 and, of that amount, authorize $99,385.25 to be turned over
for collection.
Resolution No. 4358 - Purchase of Citywide Genetec Enterprise Access
Control System
Page 2 of 8Page 8 of 225
To approve Resolution No. 4358, waiving the competitive bidding requirements and
approving the purchase of Genetec Door Access and Video Security Monitoring
System from Interwest Technology Systems Inc..
Resolution No. 4359 – Project Acceptance for Broadmoor Tax Increment
Funding (TIF,) Phase 1A (Rough Grading) Project
To approve Resolution No. 4359, accepting work performed by Goodman &
Mehlenbacher Enterprises (GAME), Inc., under contract for the Broadmoor TIF,
Phase 1A (Rough Grading) Project.
MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember
Serrano to approve the Consent Agenda as read.
RESULT: Motion carried unanimously 7-0
AYES: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos,
Councilmember Milne, Councilmember Roach, and
Councilmember Serrano
PUBLIC COMMENTS
Peter Harpster, Pasco resident, commented on the 4th of July Parade and work with
staff related to development in the Broadmoor area.
REPORTS FROM COMMITTEES AND/OR OFFICERS
Verbal Reports from Councilmembers
Mr. Campos reported on the Ben Franklin Transit Board meeting he recently
attended.
Milne reported on the Parks & Recreation Advisory Board and COPA (State of
Colima, Mexico and Pasco, WA friendship group) meetings that he recently
attended. He noted the upcoming community delegation who will be traveling to the
State of Colima, Mexico.
Mayor Pro Tem Maloney commented on the recent Hearing Examiner meeting held
last week.
Mayor Barajas also commented on the recent COPA meeting and upcoming travel
to the State of Colima, Mexico. She announced that the Pasco Fire Department
celebrated its 115 anniversary over the past weekend.
Fire Chief Crowley elaborated on the weekend event.
Page 3 of 8Page 9 of 225
Mayor Barajas also commented on recent legislation related to public safety and
Police Services and asked to meet with City Manager Lincoln and Police Chief
Roske.
General Fund Monthly Report - May 2023
Ms. Buckley provided a brief overview of the May 2023 General Fund Report.
HEARINGS AND COUNCIL ACTION ON ORDINANCES AND RESOLUTIONS
RELATING THERETO
Q - Empire Estates Latecomer: Contested Area/Assessment
Mayor Barajas announced that the Empire Estates Latercomer area/assessment
was contested.
Mr. Ferguson read the quasi-judicial procedure including how the Appearance of
Fairness Doctrine applies to it. Next, he asked all Councilmembers a series of
questions associated with potential conflicts of interest to disclose such potential
conflicts or appearance of conflicts. With no response from the Councilmembers,
he asked if any members of the public were seeking to disqualify a member of
Council from participating in the proceedings. No one came forward.
Mr. Ferguson briefly discussed the Latecomer Agreement process and the
preliminary assessment reimbursement area. He stated that the only action before
Council was determine the allocation of cost for the property owners within the
benefit area for the improvements of utilities including water, sewer, and streets
(roadway, curb/gutter, sidewalks, and the extents of the benefit area).
Mr. Padvorac provided a brief overview of the contested area/assessment fo r the
proposed Latecomer Agreement, per the Pasco Municipal Code (PMC), including
the following four methods:
1. Front footage method (standard method the City of Pasco uses)
2. Number of Units method
3. Square footage method
4. Zone and termini method
Council asked about the front footage method and staff confirmed that it was the
standard method used by the City.
Steve Bauman, B4 Consultants and Representative for Broetje's who own property
included in the Latecomer Agreement assessment area, requested that this item
be continued to a future meeting. He expressed concern about the calculation
method used and was concerned about the developer's 50% fee for only three -
fourths of a street. He asked that this action be held until the City provides him with
all of the information he has requested.
Page 4 of 8Page 10 of 225
Hilario Zaragoza, co-owner of Empire Brothers Construction, LLC of Pasco and
developer for Empire Estates, commented on his project and expressed support for
the area and assessment method for proposed Latecomer Agreement.
Mr. Padvorac provided clarification on the three-fourths of the street item brought
up by Mr. Bauman, stating that this refinement would occur during vetting the final
costs.
John Scheline, B4 Consultants staff, also requested this action be moved to a future
date. He expressed concern about needing additional information related to this
item.
Council and staff continued to discuss the updated percentage calculation for the
preliminary assessment reimbursement area.
MOTION: Councilmember Serrano moved, seconded by Councilmember Roach
to continue the contested area/assessment for the Latecomer Agreement to a
future meeting.
RESULT: DEFEATED. 2-5
AYES: Councilmember Milne and Councilmember Serrano
NAYS: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos, and
Councilmember Roach
Council and staff discussion continued briefly and a majority of Council indicated
that they were ready to vote on this item based on Exhibit A, Empire Estates
Latecomer's Agreement's Benefit Area, specifically the "Allocation of Cost [%] =
[(Individual Parcel Frontage [FT])/(Total Parcel Frontage [FT])]" column.
MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember
Campos to approve the corrected reimbursement area and proportionate share
calculation recommended by City Staff.
RESULT: Motion carried 6-1
AYES: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos,
Councilmember Milne, and Councilmember Roach
NAYS: Councilmember Serrano
ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS
Resolution Nos. 4361 & 4362 - Approval of Temporary and Term Aquatic
Lands' Agreements with the Department of Natural Resources for the Waste
Water Treatment Plant Outfall Pipe within the Columbia River
Page 5 of 8Page 11 of 225
Mr. Worley introduced Deputy Public Works Director Serra who provided a brief
report on the proposed temporary and term aquatic lands' agreements for the
Waste Water Treatment Plant Outfall Pipe.
Mayor Pro Tem Maloney asked about the role U.S. Army Corps of Engineers
(Corps) in this matter.
Ms. Serra stated that the Corps did not participate in this action.
MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Roach
to approve Resolution No. 4361, authorizing the City Manager to execute the
temporary Aquatic Lands Right of Entry No. 23-104550 and Aquatic Lands
Easement No. 51-104551 easement and temporary right of entry agreements
with the State of Washington Department of Natural Resources to facilitate the
construction of the new wastewater treatment plant outfall pipe within the
Columbia River.
RESULT: Motion carried unanimously 7-0
AYES: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos,
Councilmember Milne, Councilmember Roach, and
Councilmember Serrano
MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember
Serrano to approve Resolution No. 4362, authorizing the City Manager to
execute Aquatic Lands Outfall Easement No. 51 -103464 for the 30-year term
easement with the State of Washington Department of Natural Resources for the
new wastewater treatment plant outfall pipe within the Columbia River.
RESULT: Motion carried unanimously 7-0
AYES: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos,
Councilmember Milne, Councilmember Roach, and
Councilmember Serrano
RECESS
Mayor Barajas called a five-minute recess at 9:18 AM.
ORDINANCES AND RESOLUTIONS NOT RELATING TO HEARINGS CONTINUED
Resolution No. 4363 Bid Award for the I-182 and Broadmoor Boulevard
Interchange
Mr. Worley provided a brief overview of the proposed in terchange project.
Council and staff briefly discussion the proposed project. The discussion included
the request to ensure the reduction of change orders and that this was the first of
Page 6 of 8Page 12 of 225
many projects associated with that area. It was confirmed that this project will likely
take a year to 18 months to complete. Council expressed support for this
interchange project, spherically related to the increased safety for multi-modal
transportation.
MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember Roach
to approve Resolution No. 4363, awarding Bid No. 21292 for the I -182 and
Broadmoor Boulevard Interchange Project to Nelson Construction Group, of
Walla Walla, Washington; and further authorize the City Manager to execute the
contract documents.
RESULT: Motion carried unanimously 7-0
AYES: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos,
Councilmember Milne, Councilmember Roach, and
Councilmember Serrano
UNFINISHED BUSINESS
Continued Right-of-Way Vacation for Snake River Agriculture LLC (VAC 2022-
006)
Mr. Gonzalez introduced Mr. Padvorac who provided a brief overview of the
detailed agenda report related to the request for the right -of-way (ROW) vacation
and confirmed staff's recommendation to deny the ROW vacation.
Council and staff discussed the intersection and the need to retain the ROW for
future roadway improvements to address increased traffic in that area.
Steve West, Snake River Ag and owner of the property adjacent to the ROW,
expressed concern about the amount of time this action has taken. He requested
that Council approve the ROW Vacation for the property previously owned by the
Washington State Department of Transportation (WSDOT).
Council and staff further discussed the intersection and the need to retain the ROW
for future roadway improvements to address increased traffic in that area with one
Councilmember recommending that staff work with the property owner related to
the ROW property that will benefit both the City and his development of the
property.
Councilmember Serrano indicated that he was not in support of a license
agreement.
Mayor Pro Tem Maloney stated that he was interested in options on how to support
development and be a good neighbor to people who want to develop property in
Pasco. If a vacation is not the proper tool, then could it be a license agreement. He
stated that he understood that the burden of the logistics would need to be on the
applicant not staff if a license agreement was pursued.
Page 7 of 8Page 13 of 225
Mr. Padvorac indicated that the mechanism would be a license agreement.
MOTION: Mayor Pro Tem Maloney moved, seconded by Councilmember
Campos to deny a request to vacate a portion of South Oregon Avenue located
at the southeast corner of East "A" Street and South Oregon Avenue.
RESULT: Motion carried 6-1
AYES: Mayor Barajas, Mayor Pro Tem Maloney,
Councilmember Brown, Councilmember Campos,
Councilmember Milne, and Councilmember Roach
NAYS: Councilmember Serrano
MISCELLANEOUS DISCUSSION
Mr. Worley announced that the City received $4.4 million in federal HUD funding for the
Process Water Reuse Facility (PWRF) Phase 3 project. He thanked U.S. Congressman
Newhouse for that funding. He also announced that the Water Treatment Plant staff
received an award from the Washington State Department of Health 22 years of
excellent water quality.
Mr. Campos expressed thanks to Police Chief Roske for the Pasco Police Department
and staff does in protecting the City.
ADJOURNMENT
There being no further business, the meeting was adjourned at 10:16 PM.
PASSED and APPROVED this ____ day of ________________, 20__.
APPROVED: ATTEST:
Blanche Barajas, Mayor Debra Barham, City Clerk
Page 8 of 8Page 14 of 225
MINUTES
City Council Workshop Meeting
7:00 PM - Monday, July 24, 2023
Pasco City Hall, Council Chambers & GoToWebinar
CALL TO ORDER
The meeting was called to order at 7:00 PM by Blanche Barajas, Mayor.
ROLL CALL
Councilmembers present: Blanche Barajas, Irving Brown, Joseph Campos, David
Milne, Zahra Roach, and Pete Serrano
Councilmembers absent: Craig Maloney
Staff present: Adam Lincoln, City Manager; Richa Sigdel, Deputy City Manager;
Angela Pashon, Assistant City Manager; Darcy Buckley, Finance Director; Eric
Ferguson, City Attorney; Kevin Crowley, Fire Chief; Eric Ferguson, Jacob
Gonzalez, Community & Economic Development Director; City Attorney; Jesse
Rice, Information Technology Director & Interim Administrative & Community
Services Director; Ken Roske, Police Chief; Steve Worley, Public Works Director;
and Debby Barham, City Clerk
The meeting was opened with the Pledge of Allegiance.
VERBAL REPORTS FROM COUNCILMEMBERS
OATH OF OFFICE - FIRE CHIEF
Oath of Office - City of Pasco's Fire Chief
Mayor Blanche Barajas administered the Oath of Office to Pasco Fire Chief Kevin
Crowley.
Fire Chief Crowley introduced his family who were in the audience.
Page 1 of 5Page 15 of 225
RECESS
Mayor Barajas called a ten-minute recess at 7:05 PM for the opportunity to meet Chief
Crowley's family and take photos.
ITEMS FOR DISCUSSION
Ordinance - Amending Pasco Municipal Code Title 17 Sign Code Related to
Murals
Mr. Gonzalez introduced Jeff Arango, AICP and Lesley Bain, FAIA, APA with
Framework, who presented the recommendations for the murals and an art
program in downtown Pasco.
Council and staff discussed the following:
• The funding request for two (2) substantial murals in highly visible locations
in the downtown area the amount of $24,000
• Possible grants for funding murals and art within the downtown area
• Purpose and Intent section and the need to further define terms such as
"obscene"
• Reminder that this is a draft ordinance and still needs a legal review
• 800-foot notice for murals and if that is the case, then there should be an
expansion for notifications for land use matters
• Opportunities for privately funded murals
• Comment on how to protect First Amendment rights along with aligning with
the City's values and City Council's goals by providing guidelines/procedures
to the Arts & Culture Commission
• Review the proposed street furnishings for durability
Ordinance - Amending Pasco Municipal Code Title 25 Related to Corner Lot
Fencing (CA2021-009)
Mr. Gonzalez provided a brief history of and proposed options to update the corner
lot fencing requirements in the Pasco Municipal Code (PMC). He provided five (5)
options for Council to consider. He commented on the sight triangle required near
intersections to ensure traffic safety. He stated the outcome is to achieve a fair and
uniform regulation for corner lot fencing that is clear and fair for the City's residents.
Council and staff further discussed the corner lot fencing and included:
• Fencing in new developments and is the code communicated to the
developer
• Safety concerns for children behind three-foot fencing
• Discussion of painted stop bars and the variance of the placement of the
stop bars
• Recommendation to include an option to apply for a variance for a fences in
unique situations
Page 2 of 5Page 16 of 225
• Sight triangle requirements and safety for individuals (vehicle, motorcycles,
other modes of transportation and pedestrians as they enter and drive
through intersections
Mr. Milne commented on receiving public comment only during the business
meetings and not at workshops. He distributed a series of photos of various
intersections to Council and commented on fencing near Road 60 and Ruby. He
stated that people want privacy in their yards.
Mr. Lincoln reminded Council that staff needed comments back from the options
presented in the report.
Mr. Campos was open to all the options and recommended the opportunity for an
individual to apply for a variance.
Mr. Milne preferred including a 15 feet set back and six-foot fencing.
Mr. Serrano preferred Options 3 and 5 and recommended a variance process.
Ms. Roach preferred Options 4 or 5 and recommended visuals for the set backs.
Mayor Barajas agreed with adding a variance process.
Mr. Brown preferred Option 5 and the variance process.
Continued Discussion of Strategic Planning for Drug Use, Crime and the
Effects on the Community
Mr. Ferguson provided a brief history of prior discussion related to:
1. Law enforcement/prosecutors needing to pass legislation assisting both
groups related to the Blake Fix Washington State legislation
2. Services focused on drug addiction intervention and temporary housing
3. Housing crisis - addressing the issue of affordable housing within the greater
Tri Cities area, which will involve several agencies and policy decisions
across the communities
He introduced City of Pasco's Prosecutor Mike Rio who provided an update related
to pending law that will be going into effect in August 2023 from the Washington
legislature.
Mr. Rio stated that the City needs to update its municipal code related to the Blake
Fix, which includes updates to state law for drug crimes and includes a diversion
program (Recovery Navigator Program.) He distributed the Washington State
Health Care Authority's "Recover Navigator Program" information. He stated that
to remain compliant, the City will need to adopt the Blake Fix ordinance as the law
goes into effect on August 15, 2023.
Page 3 of 5Page 17 of 225
Council asked clarifying questions regarding the new law and Mr. Rio, Chief Roske
and Mr. Ferguson provided responses.
Mr. Serrano encouraged Council to stay mindful and engaged with state legislation
as the Blake Fix is not a long-term fix.
RECESS
Mayor Barajas called a five-minute recess at 8:59 PM.
Resolution - Amendment No. 1 to the Prosecutorial Services Agreement with
Rio Foltz, PLLC
Ms. Sigdel introduced Management Analyst Samantha McCanse who provided a
brief report related to the proposed amendment to the Prosecutorial Services
Agreement.
Council expressed support for the proposed amendment.
Introduction of Bond Ordinances
Ms. Buckley provides a report on the bond projects and funding options.
Mr. Campos commented on the need for the Memorial Park Pool bubble and
possibility of partnerships/sponsorships to help pay for the cost of the bubble.
Discussion of Ziply Fiber Franchise Agreement
Mr. Ferguson provided a brief report on the proposed Ziply Fiber Franchise
Agreement.
Mr. Campos expressed support for this new franchise agreement.
Utility Billing Conversion Update
Ms. Buckley provided a brief report on the upcoming Utility Billing software
conversion scheduled for mid-August 2023.
Ms. Roach expressed appreciation to this roll out and communications with the
customers is vital.
Page 4 of 5Page 18 of 225
ADJOURNMENT
There being no further business, the meeting was adjourned at 9:56 PM.
PASSED and APPROVED this __ day of ________________, 20__.
APPROVED: ATTEST:
Blanche Barajas, Mayor Debra Barham, City Clerk
Page 5 of 5Page 19 of 225
AGENDA REPORT
FOR: City Council August 3, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Darcy Buckley, Finance Director
Finance
SUBJECT: Bills and Communications - Approving Claims in the Total Amount of
$8,646,082.86
I. REFERENCE(S):
Accounts Payable 08.07.2023
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To approve claims in the total amount of $8,646,082.86 ($4,357,146.55 in Check
Nos. 257389 - 54464 Nos. Check 257876); $81,189.00 in - 54517);
($1,885,453.29 in Electronic Transfer Nos. 841493 - 841527, 841540 - 841545,
841620, 841623 - 841688, 841693 - 841726, 841731 - 841746, 841763 -
841765, 841767 - 841772, 841786 - 841845, 841861 - 841903, 841915 -
841963, 841978 - 841979, 841981, 841984 - 842018, 842048 - 842096, 842098
- 842102, 842108 - 842115, 842119 - 842122, 842125 - 842126, 842164 -
842185); $2,322,294.02 in Electronic Transfer Nos. 54464 - 54517).
III. FISCAL IMPACT:
IV. HISTORY AND FACTS BRIEF:
V. DISCUSSION:
Page 20 of 225
REPORTING PERIOD:
August 7, 2023
Claims Bank Payroll Bank Gen'l Bank Electronic Bank Combined
Check Numbers 257389 - 257876 54464 - 54517
Total Check Amount $4,357,146.55 $81,189.00 Total Checks 4,438,335.55$
Electronic Transfer Numbers 841493 - 841527 30193318 - 30194684
841540 - 841545
841620
841623 - 841688
841693 - 841726
841731 - 841746
841763 - 841765
841767 - 841772
841787 - 841845
841861 - 841903
841915 - 841963
841978 - 841979
841981
841984 - 842018
842048 - 842096
842098 - 842102
842108 - 842115
842119 - 842122
842125 - 842126
842164 - 842185
Total EFT Amount $1,885,453.29 $2,322,294.02 $0.00 Total EFTs 4,207,747.31$
Grand Total 8,646,082.86$
Councilmember
100 1,471,389.79
110 72,687.35
140 255,115.25
145 3,140.49
150 72,845.02
160 10,573.56
165 439.72
168 29,027.07
170 1,738.27
180 2,542.40
185 2,851.28
190 142,032.90
194 41,446.27
195 140.10
196 HOTEL/MOTEL EXCISE TAX 23,847.20
367 1,755,124.36
410 652,267.24
510 34,726.33
515 31,723.66
520 282,770.87
619 129.13
630 7,564.12
690 3,751,960.48
GRAND TOTAL ALL FUNDS:8,646,082.86$
FLEX
PAYROLL CLEARING
SENIOR CENTER OPERATING
MULTI-MODAL FACILITY
RIVERSHORE TRAIL & MARINA MAIN
REVOLVING ABATEMENT
OLD FIRE OPEB
ECONOMIC DEVELOPMENT
STADIUM/CONVENTION CENTER
GENERAL CAP PROJECT CONSTRUCTION
UTILITY, WATER/SEWER
EQUIPMENT RENTAL - OPERATING GOVERNMENTAL
EQUIPMENT RENTAL - REPLACEMENT GOVERNMENTAL
MEDICAL/DENTAL/VISION INSURANCE
MARTIN LUTHER KING COMMUNITY CENTER
AMBULANCE SERVICE
CEMETERY
ATHLETIC PROGRAMS
ANIMAL CONTROL
Councilmember
SUMMARY OF CLAIMS BY FUND:
GENERAL FUND
STREET
C.D. BLOCK GRANT
July 13 - August 2, 2023
C I T Y O F P A S C O
Council Meeting of:
Accounts Payable Approved
The City Council
City of Pasco, Franklin County, Washington
We, the undersigned, do hereby certify under penalty of perjury the materials have been furnished, the services rendered or the labor performed as described
herein and the claim is a just, due and unpaid obligation against the city and we are authorized to authenticate and certify to such claim.
Adam Lincoln, City Manager Griselda Garcia, Finance Manager
We, the undersigned City Councilmembers of the City Council of the City of Pasco, Franklin County, Washington, do hereby certify on this
7th day of August, 2023 that the merchandise or services hereinafter specified have been received and are approved for payment:
Page 21 of 225
AGENDA REPORT
FOR:City Council August 2, 2023
TO:Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM:Richa Sigdel, Deputy City Manager
City Manager
SUBJECT:Resolution No. 4364 - 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:
MOTION, City the Authorizing 4364, No. approve to move I Resolution
Manager to sign and execute Amendment No. 1 for Prosecutorial Services for
the City with Rio Foltz, PLLC.
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,
Page 22 of 225
and civil infraction cases on behalf of the City. The City has contracted with
private attorneys for municipal misdemeanor, gross misdemeanor, and civil
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.
In order to hire qualified attorneys able to meet required standards and
caseload, the City staff is proposing an increase to Rio Foltz, PLLC contract by
$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.
V.DISCUSSION:
At the July 24th Workshop, staff presented the amendment to Council.
Staff recommends approval of the proposed Amendment to the Prosecutorial
Services Agreement with Rio Foltz, PLLC.
Page 23 of 225
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 24 of 225
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 25 of 225
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 26 of 225
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 27 of 225
Pasco City Council Meeting
July 24, 2023Page 28 of 225
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 29 of 225
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 30 of 225
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 31 of 225
Pasco City Council Meeting
July 24, 2023Page 32 of 225
AGENDA REPORT
FOR: City Council August 2, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Debra Barham, City Clerk
City Manager
SUBJECT: *Civil Service Commission/Personnel Board Appointment of Todd Roper
I. REFERENCE(S):
PMC 2.40
Candidate Application Packet - Council Only
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to confirm the City Manager's appointment of Todd Roper to
Position No. 2 on the Civil Service Commission/Personn el Board with an
unexpired term ending on February 17, 2028.
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
State Law (RCW 41.08 Civil Service for City Fire Fighters and 41.12 Civil Service
for City Police) requires the City to maintain a Civil Service Commission for its
Police and Fire Departments. PMC 2.40 establishes a Civil Service Commission
for Fire and Police employees, a Personnel Board for all employees of the City.
Per statute, the appointment of its members are to six-year terms.
The purpose of the Civil Service Commission/Personnel Board is to:
• ensure the provisions of the law are carried out;
• ensure the continuance of the civil service system;
• promote efficiency in the dispatch of public business;
• ensure that the selection and promotion of employees is based on merit;
and
• ensure all employees in the classified civil service receive fair and
impartial treatment at all times.
Page 33 of 225
Additionally, the Commission is tasked with certifying that no person in the
classified civil service, or seeking admission thereto, shall be appointed,
promoted, reduced, or removed, or in any way favored or discriminated against
in their employment or opportunity for employment because of their race, color,
age, religious or political opinions or affiliations, union affiliation or national origin.
The Civil Service Commission is composed of three (3) citizens to assure
fairness and impartiality in the hiring and promotion of uniformed police and fire
employees. The Commission also decides appeals of discipline administered to
uniformed police and fire employees, when such employees elect to use the Civil
Service Commission hearing process (rare occasions) rather than the grievance
arbitration process afforded in their respective bargaining contracts. In addition,
the City Council has previously designated the Civil Service Commissioners to
fill the role of the Personnel Board to consider certain appeals of workplace
issues relating to non-uniformed employees who are not otherwise covered by
a Collective Bargaining Agreement.
Appointments to the Civil Service Commission are made by the City Manager
with the consent of the City Council, per PMC Section 2.40.020.
V. DISCUSSION:
The key attributes of a Commission member are attention to detail, an interest
in the civil service process and the ability to make fair and impartial decisions
based on the facts surrounding an issue.
Mr. Roper has extensive civil service knowledge and experience through his
years working in Texas, as well as the current Fire Chief for the Hanford Nuclear
Reservation. Mr. Roper is civic-minded and has municipal experience, which will
add great value to Pasco's Civic Service Commission.
City Manager requests Council to confirm Todd Roper to the Civil Service
Commission.
Page 34 of 225
2.40.010
2.40.020
2.40.030
2.40.040
2.40.050
2.40.060
Chapter 2.40
CIVIL SERVICE COMMISSION AND PERSONNEL BOARD
Sections:
Created – Purpose.
Membership.
Civil service rules.
Powers and duties of Personnel Board.
Fire Chief excepted.
Police Chief excepted.
2.40.010 Created – Purpose.
There is created pursuant to Chapters 41.08 and 41.12 RCW a Civil Service Commission for the Fire Department
and Police Department, and a Personnel Board for all employees of the City. [Ord. 3266 § 5, 1997; Code 1970
§ 2.33.010.]
2.40.020 Membership.
Residents of the City of Pasco being citizens of the United States will be eligible for appointment. The City Manager
will make all appointments to the Commission with consent of the City Council, following rules established in
Chapters 41.08 and 41.12 RCW. Members of the Civil Service Commission will also serve as members of the
Personnel Board. [Ord. 3266 § 5, 1997; Code 1970 § 2.33.020.]
2.40.030 Civil service rules.
The Commission shall adopt rules as provided for in Chapters 41.08 and 41.12 RCW, respectively. Commission
rules may be amended and updated from time to time. [Ord. 3266 § 5, 1997; Code 1970 § 2.33.030.]
2.40.040 Powers and duties of Personnel Board.
It shall be the duty of the Personnel Board to:
(1) Hear grievances in accordance with rules of procedures and practices to be adopted by the Board, but
informality of proceedings or in the manner of taking testimony shall not affect any action of the Board.
Your Selections | Pasco Municipal Code Page 1 of 2
The Pasco Municipal Code is current through Ordinance 4643, passed March 6, 2023.
Page 35 of 225
The Pasco Municipal Code is current through Ordinance 4643, passed March 6, 2023.
Disclaimer: The City Clerk’s office has the official version of the Pasco Municipal Code. Users should contact the
City Clerk’s office for ordinances passed subsequent to the ordinance cited above.
City Website: www.pasco-wa.gov
City Telephone: (509) 544-3080
Code Publishing Company, A General Code Company
(2) Advise the appointing authority on matters brought before the Board by the appointing authority.
(3) Keep such records as may be necessary for the proper execution of the powers and duties of the Board. [Ord.
3266 § 5, 1997; Code 1970 § 2.33.040.]
2.40.050 Fire Chief excepted.
Any person appointed as Fire Chief after January 25, 1994, shall be excepted from inclusion within the purview of
the Civil Service System created by this chapter. [Ord. 3545 § 33, 2002; Code 1970 § 2.33.050.]
2.40.060 Police Chief excepted.
Any person appointed as Police Chief after January 25, 1994, shall be excepted from inclusion within the purview
of the Civil Service System created by this chapter. [Ord. 3545 § 33, 2002; Code 1970 § 2.33.060.]
Your Selections | Pasco Municipal Code Page 2 of 2
The Pasco Municipal Code is current through Ordinance 4643, passed March 6, 2023.
Page 36 of 225
AGENDA REPORT
FOR: City Council August 2, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Debra Barham, City Clerk
City Manager
SUBJECT: *Parks & Recreation Advisory Board Appointment of Michael Harrington
I. REFERENCE(S):
Resolution No. 4262
Candidate Applications - Council only
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
To confirm the Mayor's appointment of Michael Harrington to Position No. 1 to
the Parks & Recreation Advisory Board with an unexpired term ending February
2, 2026.
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
The Parks & Recreation Advisory Board (PRAB) is composed of seven
members; terms are for three years. The PRAB meets the second Thursday of
every odd month at 5:30 PM in the City Hall Council Chambers. The PRAB
discusses and makes recommendations to the City Council and the City
Manager on matters pertaining to programs administered by the Recreation
Division, and capital improvements related to the City's parks system.
There is currently a vacancy on the PRAB due to a recent resignation.
As outlined in Resolution No. 4262, the Council Subcommittee, consisting of
Mayor Barajas and Councilmember Campos and Milne, interviewed two
candidates July 26, 2023.
Page 37 of 225
V. DISCUSSION:
After the interviews concluded, Mayor Barajas selected Michael Harrington to
serve on the Parks & Recreation Advisory Board under Position No.1 to serve
for the unexpired term to February 2, 2026.
Mayor Barajas is seeking Council's concurrence with the Parks & Recreation
Advisory Board appointment as presented.
Page 38 of 225
RESOLUTION NO.4262
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON
AMENDING THE PROCESS FOR APPOINTMENTS TO CITY BOARDS AND
COMMISSIONS.
WHEREAS, the City of Pasco maintains several citizen boards and commissions to assist
the delivery of municipal services,as well as to advise the City Council in making policy decisions;
and
WHEREAS, the appointment process prescribed throughout the Pasco Municipal Code
requires the Mayor to appoint qualified individuals to vacancies on such boards or commissions,
subject to confirmation of the City Council; and
WHEREAS, the last amendment to the City's Boards and Commissions appointment
process was passed by Council on April 16, 2012, through Resolution No. 3388; and
WHEREAS, the solicitation process and management of the City's Boards and
Commissions members was transferred from the City Manager's Office to the City Clerk's Office
in January 2020; and
WHEREAS, during the onset of the COVID-19 pandemic in early 2020, the process for
reviewing application packets and interviewing candidates was modified to accommodate meeting
restrictions, which also allowed far the use of new technology providing for the conduct of
interviews virtually; and
WHEREAS, the Mayor and City Council desire to continue reviewing City Boards and
Commissions application packets and interviewing candidates through a Council subcommittee
consisting of two Councilmembers and the Mayor, which has been effective and efficient for both
the City Council and applicants alike.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF PASCO,WASHINGTON:
Section 1: Applications for vacancies on City Boards and Commissions shall be solicited
by the City Clerk's Office on behalf of the City Council prior to when a position's term expires or
when a vacancy occurs due to a resignation or removal of a member.
Section 2: Application packets, of those candidates meeting the qualifications for the
Board or Commission position(s), shall be reviewed by a Council subcommittee appointed by the
Mayor,which shall include the Mayor and two Councilmembers. The Council subcommittee shall
be ad-hoc and appointed when applications are received for a current vacancy or vacancies or for
upcoming position term expirations. The Council subcommittee shall select those candidates it
deems best suited for the respective Board/Commission but not more than three candidates for
Resolution—BC Interview&Appointment Process- 1
Page 39 of 225
each vacancy to be filled. The Council subcommittee shall consider the following factors,
including,but not limited to :
a) Geographic representation
b) Gender representation
c) Ethnic representation
d) Familial and financial relationships of board members
e) Qualifications and expertise related to the subject matter of the respective Board or
Commission
Section 3: The Council subcommittee shall conduct the interviews of the selected
candidates and may recommend reappointment of an incumbent applicant without interview if the
incumbent has served not more than two consecutive terms since the last interview. At a City
Council meeting following such interviews, an interviewed candidate shall be selected by the
Mayor for appointment/reappointment to each vacant position. Any candidate selected by the
Mayor shall be subject to confirmation vote by the City Council; a majority vote of the quorum
present at such meeting shall be required to confirm the Mayor's appointments.
Section 4: Any prior resolutions of the City Council in conflict with the provisions in this
resolution shall be superseded by this resolution.
Section 5: This Resolution shall take effect immediately.
PASSED by the City Council of the City of Pasco, Washington this 24 day of October,
2022.
Blan s
Mayor
ATTEST: APPROVED AS TO FORM:
Debra Barham, CMC err Fer I aw, PLLC
City Clerk City torneys
Resolution—BC Interview&Appointment Process-2
Page 40 of 225
AGENDA REPORT
FOR: City Council August 2, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Debra Barham, City Clerk
City Manager
SUBJECT: *Pasco Public Facilities District Board Reappointment of Caroline
Bowdish
I. REFERENCE(S):
Candidate Application Packet - Council Only
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to confirm the Mayor's reappointment of Caroline Bowdish to
Position No. 1 on the Pasco Public Facilities District Board with the term expiring
on July 14, 2027.
III. FISCAL IMPACT:
N/A
IV. HISTORY AND FACTS BRIEF:
The Pasco Public Facilities District (PPFD) Board is composed of five (5)
members with staggering position terms, which are for four (4) years each.
The Board oversees operation of the Pasco Public Facilities District. In this
capacity, the PPFD is authorized by charter to acquire, construct, operate and
maintain any qualified public facility.
Most recently, the PPFD placed Proposition No. 1 on the Franklin County Special
Election Ballot, on April 26, 2022, "imposing 2/10 of 1% sales and use tax for the
purpose of providing funds for the costs associated with the design, construction,
and operation of an indoor/outdoor aquatic center including a competition pool,"
to the voters of the District and it passed by a majority vote of those voting within
the District.
Page 41 of 225
In addition, the PFD oversees payment of Pasco's share of a special state sales
tax grant intended for "regional centers," in partnership with the Kennewick
Public Facilities District for the Three Rivers Convention Center.
Per RCW 35.57.010(3)(a)(ii), three of the five PPFD Board members must be
appointed by the legislative body based on recommendations by a "local
organization(s)".
Position Nos. 2, 3 and 5 require the applicant(s) a recommendation from a local
organization, while Position Nos. 1 and 4 are solely approved by Council.
Ms.Bowdish has served on the PPFD Board since July 2015 (for two (2) terms.)
V. DISCUSSION:
Mayor Barajas is seeking Council concurrence for the reappointment of Ms.
Bowdish to Position No. 1 on the PPFD Board, for a four-year term ending on
July 14, 2027.
Page 42 of 225
AGENDA REPORT
FOR: City Council July 24, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Debra Barham, City Clerk
City Manager
SUBJECT: *Tri-City Regional Hotel/Motel Commission Reappointment of Monica
Hammerberg
I. REFERENCE(S):
Tri-Cities Hotel & Lodging Association Recommendation
Interlocal Agreement - Section 5, Tri-City Regional Hotel/Motel Commission
Appointments
Resolution No. 101-13 Amending the Commissioners' Term of Office
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: Hammerberg Monica of reappointment to confirm move I the
(Hampton Inn & Suites, Pasco) to the Tri-City Regional Hotel/Motel Commission
for a two-year term commencing on September 1, 2023 and ending August 31,
2025.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
The Tri-Cities Tourism Promotion Area (TPA) was formed in 2004 by Pasco,
Kennewick, and Richland.
The TPA is a regional organization that collects a fee from hotels/motels in the
region and uses the funding to promote tourism in the area. The fee is remit ted
to the state, which then distributes it back to the respective cities. The cities then
distribute and it uses which to fund marketing the to funding the TPA,
promotional activities.
The Tri-TPA. City Regional Hotel/Motel Commission oversees the The
Commission was established under Section 5 of the Interlocal Agreement
Page 43 of 225
(attached). The Commission consists of six (6) voting members; two (2)
members appointed by each of the three (3) Cities from nominees offered by the
Tri-Cities Hotel & Lodging Association. All vacancies are filled by the respective
City from a list of nominees offered by the Association.
V. DISCUSSION:
Per the Tourism Promotion Area ILA, the City of Pasco shall appoint two (2)
voting members by the Pasco City Council from a list of nominees prepared by
the Tri-City Hotel & Lodging Association from Operators of Lodging Businesses
within the City limits.
The Tri-Cities Hotel & Lodging Association is recommending Ms. Hammerberg
to serve on the Tri-City Hotel/Motel Commission for another two-year term.
Page 44 of 225
P.0.Box1739
Iliclllilllll,WA99352
July 21,2023
Mr.Adam Lincoln
City of Pasco
525 N 3"’Ave
Pasco,WA 99301
Mr.Adam Lincoln:
This letter is in reference to the Pasco TPA Commissioner position currently held by Ms.Monica
Hammerberg from the Hampton Inn &Suites in Pasco.Ms.Hammerberg’s term expires on August 31,
2023 and she is eligible for re-election.
Monica Hammerberg has been selected by the Tri—CitiesHotel and Lodging Association as the preferred
candidate to serve as the TPA Commissioner to represent the City of Pasco for a two—year term,which
will expire on August 31,2025.
If you have any questions regarding this issue,please do not hesitate to contact me at 509-792-1660.
Sincerely,
Monica Hammerberg
Treasurer
Tri—CitiesHotel &Lodging Association
Cc:Kevin Lewis -President CEO Visit Tri—Cities
Page 45 of 225
Tourism Promotion Area
5. Creation of Tri-City Regional Hotel-Motel Commission.
A. It is understood and agreed that it is hereby created, pursuant to RCW 35.101.130
( 1 ), the Tri-City Regional Hotel and Motel Commission ("Commission") to advise the Cities on
the expenditure of Special Lodging Assessment revenues to fund tourism promotion within the
Tri-City region.
B. The Commission shall consist of six (6) voting Members and three (3) ex officio
Members. Two voting members shall be selected by the Kennewick City Council from a list of
nominees prepared by the Tri-City Hotel and Lodging Association from Operators of Lodging
Businesses within the city limits of the City of Kennewick. Two (2) voting members shall be
selected by the Pasco City Council from a list of nominees prepared by the Tri-City Hotel and
Lodging Association from Operators of Lodging Businesses within the city limits of the City of
Pasco. Two voting members shall be selected by the Richland City Council from a list of
nominees prepared by the Tri-City Hotel and Lodging Association from Operators of Lodging
Businesses within the city limits ofthe City of Richland. In no event shall tifty percent (SO%) or
more of the voting membership of the Commission be selected from the same Lodging
Ownership or Management Company within the Tri-City Regional Area. The City Manager or
his or her Designee from each of the three Cities shall serve as an ex officio member. All
Commission members, voting and ex officio may participate in all discussions regarding
proposed activities and programs by the Tri-City Regional Tourism Promotion Area for
promotion and marketing of tourism. Ex officio members shall not have voting rights , except in
the event of a tie vote among the voting members at which time, each ex officio member may
cast a vote to break the tie. Any vacancy on the Tri-City Regional Hotel and Motel Commission
shall be filled by the appointing City, from a list of nominees prepared by the Tri -City Hotel and
Lodging Association for voting memberships within thirty (30) days from the date the vacancy
occurs.
C. It is understood and agreed that the initial voting members of the Commission
shall serve staggered terms, with one member serving a one-year term and the second member
serving a two-year term. The length of the term for each individual voting member of the initial
Commission shall be chosen by lot at the first meeting of the Commission. Thereafter, all voting
members subsequently appointed to the Commission shall serve a term of two years. No voting
member shall serve more than two consecutive terms as a Member of the Commission unless
such subsequent term is separated by at least twelve (12) months from the last date of service as
a Member of the Commission. A Member may be removed from the Commission by three-
fourths (3 /4) affirmative vote of the Commission for actions deemed to be adverse to the interest
of the Commission. Such actions may include unexcused absences from three meetings of the
Commission within a twelve (12) month period; failure to perform assigned duties and
responsibilities; and conduct detrimental to the best interests of the Commission. Succeeding
and replacement voting members shall be selected by each City as provided above for the
selection of the initial voting members ofthe Commission.
Page 46 of 225
RESOLUTION NO._1()1-13_
A RESOLUTION FOR AMENDMENT OF THE BYLAWS
OF THE TRI-CITY REGIONAL HOTEL-MOTEL
COMMISSION
WHEREAS,a proposal to amend the Bylaws has been introduced by a Commission
member;and
WHEREAS,notice of the proposed amendment has been provided to members of the
Commission ?fteen (15)days prior to the Commission meeting scheduled for consideration of
the proposed amendment,NOW,THEREFORE,
IT IS RESOLVED:
1.That Section 2.3 "Term of Office“shall be and hereby is amended and shall read
as follows:
Section 2.3.Term of Office.The initial voting members of the Commission
shall serve staggered terms with one—halfof the members serving a one year terms,and
the second half of the members serving a two year terms.The length of the term for each
individual voting member of the initial Commission shall be chosen by lot at the ?rst
meeting of the Commission.Thereafter,all voting members shall serve regular terms of
2.That Section 3.1 “Regular Commission Meetings"shall be and hereby is amended
and shall read as follows:
Section 3.1 Regular Commission Meetings.
The regular Commission meetingsshallbe held on the seeonelthird Thursday
of each month at 9:00 a.m.In the event there is no business to come before the
Commission at its regularly scheduled meeting or a quorum cannot be gathered,the
meeting may be postponed to the next available meeting date.
The number of those voting in favor of the Resolution are 6
The number of those voting in opposition of the Resolution are 0
The Resolution is g approved rejected.
Resolution No._l0l-13v
Page 1 of]
Page 47 of 225
AGENDA REPORT
FOR: City Council August 2, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Richa Sigdel, Deputy City Manager
City Manager
SUBJECT: Update on the Confederated Tribes of the Colville Reservation Pasco
Project
I. REFERENCE(S):
Presentation
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
Jarred Michael Erickson, Chairman, and Cody Desautel, Executive Director from
the Confederated Tribes of the Colville Reservation will provide a brief update
regarding the Pasco Project.
III. FISCAL IMPACT:
None
IV. HISTORY AND FACTS BRIEF:
The Confederated Tribes of the Colville Reservation are a federally recognized
Indian Tribe. The Colville Tribes purchased lands within the Pasco city limits. In
mid-2019, the Colville Tribal Council and Chairman extended invitations to the
Pasco City Council and City Manager to share information about their proposals
for their newly purchased land in Pasco, discuss necessary processes, learn of
the City’s plans, explore mutual interests and areas for partnerships, and
establish and begin building a strong government-to-government relationship
built on trust and transparency. These meetings, conducted in Pasco and at the
Lucy F. Covington Government Center in Nespelem, were both productive in
laying the foundation for a relationship between the Tribes and the City.
In October 2019, Council approved an "Agreement in Principle" between the
Tribes and the City. The Agreement cites the respective authority of the Tribe
and the City to establish a government -to-government relationship; discusses
the motivation(s) for the Tribes’ decision to purchase property in Pasco; and the
desire of the Tribe and City to collaborate and cooperate on matters of mutual
Page 48 of 225
interest specific to the property and to the benefit of the Tribes, Tribal members,
the City and it residents and business community.
The Agreement contemplates that the parties will begin developing processes
and procedures to facilitate cooperation between the City and the Tribes on
multiple issues, including but not limited to the Fee land to Trust land process,
educational and cultural exchange, tourism, media and community outreach,
and communications protocols. The Agreement makes clear that the term is
open-ended, may be terminated by either party with formal notice, and is not
legally binding.
In August 2022, the City Council approved Resolution No. 4221, approving a
Municipal Services Cooperation Agreement with the Confederated Tribes of the
Colville Reservation, which provides assurances to the City that it will be made
whole for the cost of providing municipal services while the property is in fee
status, outlines a process when properties go to trust status, and is consistent
with discussions over the past three years. At the April 17, 2023, Council
Meeting, Council approved a letter of support for the Confederated Tribes of the
Colville Reservation's Pasco project.
V. DISCUSSION:
Presentation and discussion of the status of the Pasco project.
Page 49 of 225
The Pasco Economic
Development Project Update
Presented to Pasco City Council
August 7th, 2023Page 50 of 225
Traditional Homelands of the Confederated Tribes
of the Colville Reservation
•Colville Confederated Tribes is comprised
of 12 tribes from across eastern
Washington, northern Idaho, eastern
Oregon, and British Columbia
•Moses-Columbia, San Poil, Nespelem,
Methow, Entiat, Colville, Lakes,
Wenatchee (Wenatchi), Chief Joseph’s
Band of Nez Perce, Palus, Okanogan,
and Chelan
•The Pasco area is the traditional
homelands to multiple constituent Colville
Tribes, including the PalusPage 51 of 225
The Tribes’ Pasco Land Purchases
Page 52 of 225
Agreements with Local Government Entities
•Agreement in Principle for
cooperation with City of Pasco (Nov.
2019)
•Signed Letter of Intent with Franklin
County PUD for a potential future
lease of Colville Tribes’ property in
Pasco for the construction and
operation of a new substation (Nov.
2020)
•Cooperation Agreement with Franklin
County Sherriff on law enforcement
and public safety issues (Aug. 2021)
•Cooperation Agreement with Port of
Pasco to address any necessary
impact mitigation and future joint
projects (June 2022)
•Municipal Services Agreement with
City of Pasco that provides for the
provision of services to the property
once in trust status (Nov. 2022) Page 53 of 225
Fee-to -Trust Process
•Off-reservation Trust Acquisitions 25 CFR §151.11
•Submitted to the BIA Northwest Regional Office in early April
•Working through the 16 step process toward a determination by the BIA
•Environmental Impact Statement (EIS)
•Notice of intent (NOI) will be posted on the Federal Register, and public scoping
begins
•Draft EIS will be forthcoming after the appropriate NEPA steps are complete
•Final EIS and Record of Decision (ROD) complete the process
•Gaming on Trust Lands Acquired After Oct. 17, 1988 (Post IGRA)
•Application will be submitted once the BIA has made sufficient progress on the EIS
•Two part determination-the Secretary of the Interior, with concurrence from the
GovernorPage 54 of 225
The Tribes’ Plans for 160-acre Parcel…Page 55 of 225
The Tribes’ Vision for the Completed Project
Page 56 of 225
Final Thoughts
-As we make progress we will continue to provide updates
-The Colville Tribe will continue engagement in the community
on other matters
-The Pasco economic development project once complete will
provide—
•Economic growth for the Tri-Cities area
•Increased revenue to help bridge the funding gap for Colville Tribes’
governmental services to its membership
•Increased contributions back to its members and the community Page 57 of 225
Q&APage 58 of 225
AGENDA REPORT
FOR:City Council August 2, 2023
TO:Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM:Jacob Gonzalez, Director
Community & Economic Development
SUBJECT:*Q Ordinance No. 4672 - Approval of Mendoza Rezone from C-1 to C-2
(Z 2023-001)
I.REFERENCE(S):
Proposed Ordinance
Exhibit A - Hearing Examiner Recommendation
Exhibit B - Map
Report to Hearing Examiner Dated: June 14, 2023
II.ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to adopt Ordinance No. 4672, approving a rezone Amending
the zoning classification of certain real property located on the southeast
corner of West Clark Street and North 5th Avenue at 528 West Clark Street
(parcel 112042085) in Pasco, Franklin County, Washington, from C-1 to C-2
and, further, authorize publication by summary only.
III.FISCAL IMPACT:
None.
IV.HISTORY AND FACTS BRIEF:
On March 24, 2023, the applicant (Maria Mendoza) submitted an application to
rezone a property located at 528 West Clark Street (Parcel No 112042085)
from C-1 (Retail Business District) to C-2 (Central Business District). The
application received a Determination of Completnees on March 28, 2023.
A public hearing with the Hearing Examiner was held on June 14, 2023, to
consider the rezone. The City received no public comments on the proposal.
Following the public hearing, the Hearing Examiner issued a recommendation
of of appeals No 2023. 23, approval on rezone the of this June
recommendation have been received.
Page 59 of 225
The City of Pasco is the lead agency for this project. Based on the State
Environmental Policy Act ("SEPA") checklist, Comprehensive Plan, applicable
regulations, and other information, a threshold determination resulting in a
Determination of Non-Significance (DNS) was issued for this project on May
10, 2023, under WAC 197-11-158.
V.DISCUSSION:
The applicant is seeking to change the zoning designation of a .32-acre parcel
addressed at 528 West Clark Street, from C-1 (Retail Business District) to C-2
(Central Business District). The site has been repurposed from its original
drive-through bank structure and has since been utilized for various purposes,
such as accommodating restaurants and retail establishments.
The site was rezoned from C-2 to C-1 in 1996 (Ordinance No. 3197) with a
concomitant agreement, which included the following prohibited uses:
- Membership Clubs
- Taverns
- Billiard & Pool Halls
- Amusement and Game Centers
- Card Rooms, Bingo Parlors, Dance Halls
- Sign Shops
- Veterinarian Clinics
The prohibited uses reflected many of the prohibitions for the former C-2
zoning district. In 2021, the Pasco City Council approved Ordinance 4556,
allowing all of the above formerly prohibited uses (except for Sign Shops and
Veterinarian Clinics) in the C-2 zoning district. The applicant wishes to use the
north side of the site for a sports bar, which the concomitant agreement
associated with the current zoning currently prohibits.
Pasco Municipal Code (PMC) Section 25.210.110 provides a method for the
termination of a concomitant agreement, which is to be done in the same
manner and follows the same procedures as an application for a zone change.
The in executed agreement concomitant terminate rezone requested the
conjunction with the 1996 rezone (Ordinance No. 3197).
The application is in conformance with the general policies of the adopted
Pasco Use Economic and Land Plan furthers and Comprehensive the
Elements. In January 2023, the City Council adopted the Downtown Pasco
Master Plan. The requested rezone application is supported by the Downtown
Management of, Strategy 4, which emphasizes the maintenance and
recruitment of businesses and the diversity of business types in the downtown.
Page 60 of 225
Staff recommends Council concurrence with the Hearing Examiner's
recommendation and adoption of the proposed rezone ordinance.
Page 61 of 225
Ordinance - Rezone Z 2023-002 - Mendoza - 1
FILED FOR RECORD AT REQUEST OF:
City of Pasco, Washington
WHEN RECORDED RETURN TO:
City of Pasco, Washington
Attn: City Clerk
525 North 3rd Avenue
Pasco, WA 99301
____________________________________________________________________________
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON,
AMENDING THE ZONING CLASSIFICATION OF CERTAIN REAL
PROPERTY LOCATED ON THE SOUTHEAST CORNER OF WEST CLARK
STREET AND NORTH 5TH AVENUE AT 528 WEST CLARK STREET
(PARCEL NO. 112042085) IN PASCO, FRANKLIN COUNTY,
WASHINGTON, FROM C-1 (RETAIL BUSINESS DISTRICT) TO C-2
(CENTRAL BUSINESS DISTRICT).
WHEREAS, the Petitioner, Maria Mendoza, seeks to rezone Parcel No. 112042085 Pasco,
Franklin County, Washington; and
WHEREAS, a complete and adequate petition for change of zoning classification meeting
the requirements of Pasco Municipal Code (PMC) Section 25.210.030 was received by the City
and, after notice was issued under PMC Section 25.210.040, an open record hearing was conducted
by the Pasco Hearing Examiner upon such petition on June 14, 2023; and
WHEREAS, based upon substantial evidence and demonstration of the Petitioner that: (a)
the proposal is in accord with the goals and policies of the adopted Comprehensive Plan; (b) the
effect of the proposal on the immediate vicinity is not materially detrimental; (c) there is merit and
value in the proposal for the community as a whole; (d) any impacts of the rezone application and
anticipated development will be mitigated by the regulations and requirements of the Pasco
Municipal Code and the City of Pasco Design and Constructions Standards; (e) a co ncomitant
agreement is not required under these circumstances; and (f) the proposed rezone is consistent with
and satisfies all criteria set forth in PMC Section 25.210.060; the Hearing Examiner has
recommended to approve the rezone, which findings and recommendation are hereby adopted by
the City Council, and the Hearing Examiner Report is hereby incorporated by reference as Exhibit
A.
Page 62 of 225
Ordinance - Rezone Z 2023-002 - Mendoza - 2
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. That the Zoning Ordinance for the City of Pasco, Washington, and the Zoning
Map, accompanying and being part of said Ordinance shall be and hereby is changed from C-1
(Retail Business District) to C-2 (Central Business District) for the real property as shown in the
Exhibit B attached hereto and described as follows:
Lots 13-16, Block 14, Gerry’s Addition to Pasco (528 West Clark Street; Parcel
No. 112042085).
Comprising approximately .32 acres
Section 2. Severability. If any section, subsection, sentence, clause, phrase or word
of this Ordinance is held to be 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 3. 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 federal laws, rules, or regulations; or
numbering or referencing of Ordinances or their sections and subsections.
Section 4. This Ordinance shall take full force and effect five (5) days after approval,
passage and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, on this ___ day of
___________, 2023.
_____________________________
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: _____________________________
Page 63 of 225
CITY OF PASCO HEARING EXAMINER
IN THE MATTER OF )
)
)
)
)
)
RECOMMENDED FINDINGS OF
FACT,RECOMMENDED
CONCLUSIONS OF LAW,
AND RECOMMENDED DECISION Z 2023-001 Mendoza Rezone THIS MATIER having come on for hearing in front of the City of Pasco Hearing Examiner on June
14, 2023, the Hearing Examiner having taken evidence hereby submits the following Recommended
Findings of Fact, Recommended Conclusions of Law, and Recommended Decision as follows:
I.RECOMMENDED FINDINGS OF FACT
1.PROPERTY/APPLICATION DESCRIPTION:
1.1 Legal: Lots 13-16, Block 14, Gerry's Addition to Pasco (528 West Clark Street;
Parcel 112042085).
1.2 General Location: Said property is located at the southeast comer of North 5th
Avenue and West Clark Street, Pasco, Franklin County, WA.
1.3 Property Size: Approximately .32 acres (13,999.50 square feet).
1.4 Request: Mendoza Rezone from C-1 (Retail Business District) to C-2 (Central
Business District).
2.ACCESS: The parcel has access from North 5th Avenue and West Clark Street.
3.UTILITIES: Municipal water and sewer are available in the alley to the south of the
property.
4.LAND USE AND ZONING: The site is zoned C-1 (Retail Business District) and is
developed with a former drive-through bank structure. Surrounding properties are zoned and
developed as follows:
NORTH:
EAST:
SOUTH:
WEST:
C-1
C-2
C-2
C-1
Vacant
Retail Businesses
Vacant
Retail Businesses
5.COMPREHENSIVE PLAN: The Comprehensive Plan designates this site as "Downtown
Overlay District." The Downtown Overlay District designation allows for 0, BP, C-1, C-2,
C-3, and CR zoning; neighborhood, community and regional shopping and specialty centers,
business parks, service and office uses may all be considered for this designation. As well,
properties located within the newly created "Downtown Pasco Overlay District" (Ordinance
4658) are subject to the overlay district regulations. Per Ordinance 4658, the overlay
standards are to be applied in addition to and in combination with all other district and
Z 2023 001
Mendoza Rezone
Page 1 of 5
Page 64 of 225
development regulations contained in Title 25 Zoning. The requirements of the overlay
district take precedence over the requirements of the underlying zoning regulations.
6.ENVIRONMENTAL DETERMINATION: The City of Pasco is the lead agency for this
project. Based on the State Environmental Policy Act ("SEP A") checklist, Comprehensive
Plan, applicable regulations, and other information, a threshold determination resulting in a
Determination of Non-Significance (DNS) was issued for this project in May 10, 2023, under
WAC 197-11-158.
7.REQUEST: Maria Mendoza has submitted a rezone application (Z 2023-001) from C-1
(Retail Business District) to C-2 (Central Business District), for Lots 13-16, Block 14,Gerry's Addition to Pasco (528 West Clark Street; Parcel 112042085), located at the
southeast comer of North 5th Avenue and West Clark Street, Pasco, Franklin County, WA.
8.SITE: The site comprises approximately .32 acres (13,999.50 square feet) and is developed
with a former drive-through bank structure.
9.HISTORY: The site was added to the Town of Pasco in 1907 as part of Gerry's Addition to
Pasco. The site was rezoned from C-2 to C-1 in 1996 (Ordinance 3197) with a concomitant
agreement, which included the following prohibited uses:
9 .1 Membership Clubs
9.2 Taverns
9.3 Billiard & Pool Halls
9 .4 Amusement and Game Centers
9.5 Card Rooms, Bingo Parlors, Dance Halls
9.6 Sign Shops
9. 7 Veterinarian Clinics
10.These prohibitions reflected many of the prohibitions for the C-2 zoning district at the time.
In 2021 Pasco City Council approved Ordinance 4556, allowing all the above formerly
prohibited uses except Sign Shops and Veterinarian Clinics in the C-2 zoning district. Most of
these uses are not explicitly allowed in the C-1 zoning district. Applicant wishes to use the
north side of the site for a Sports Bar. On April 17, 2023, City Council approved Ordinance4658, amending Pasco Municipal Code Chapter 25.95 and creating the "Downtown Pasco
Overlay District." Per Ordinance 4658, the overlay standards are to be applied in addition to
and in combination with all other district and development regulations contained in Title 25
Zoning. The requirements of the overlay district take precedence over the requirements of the
underlying zoning regulations.
11.REZONE CRITERIA: The initial review criteria for considering a rezone application are
explained in PMC 25.88.030. The criteria are listed below as follows:
11.1 The date the existing zone became effective:
11.1.1 The site was rezoned to C-1 (Retail Business District) zoning in in 1996
(Ordinance 3197) with a concomitant agreement.
11.2 The changed conditions, which are alleged to warrant other or additional zoning:
11.2.1 The site was rezoned from C-2 to C-1 in 1996 (Ordinance 3197) with a
concomitant agreement, which prohibited Membership Clubs, Taverns,
Billiard & Pool Halls, Amusement and Game Centers, Card Rooms, Bingo
Z 2023 001
Mendoza Rezone
Page 2 of 5
Page 65 of 225
Parlors, Dance Halls, Sign Shops, and Veterinarian Clinics, reflecting
prohibitions for the former C-2 zoning district. City Council subseqµently
approved Ordinance 4556 in 2021, allowing all these uses except Sign Shops,
and Veterinarian Clinics in the C-2 zoning district. Applicant wishes to use
the north side of the site for a Sports Bar, which the concomitant agreement
currently prohibits.
11.2.2 Toe site is located within the newly created "Downtown Pasco Overlay
District" (Ordinance 4658) and is subject to the overlay district regulations.
Per Ordinance 4658, the overlay standards are to be applied in addition to
and in combination with all other district and development regulations
contained in Title 25 Zoning. The requirements of the overlay district take
precedence over the requirements of the underlying district regulations.
11.3 Facts to justify the change on the basis of advancing the public health, safety and
general welfare:
11.3.1 The rezone application is consistent with the Pasco Comprehensive Plan,
which has been determined to be in the best interest of advancing public
health, safety, and general welfare of the community. The rezone would
allow for Membership Clubs, Taverns, Billiard & Pool Halls, Amusement
and Game Centers, Card Rooms, Bingo Parlors, and Dance Halls, none of
which are famous for advancing the public health, safety and general welfare.
11.4 The effect it will have on the value and character of the adjacent property and the
Comprehensive Plan:
11. 4 .1 A change in zoning classification may ultimately result in the development of
a Sports Bar, which would be considered appropriate for this land use
designation, in alignment with the Land Use Element of the Comprehensive
Plan. The rezone application is consistent with and meets the intent of the
goals and policies of the Comprehensive Plan.
11.5 The effect on the property owner or owners if the request is not granted:
11.5 .1 If the site remains with the current zoning designations the site may remain
underutilized.
11.6 The Comprehensive Plan land use designation for the property
11.6.1 The Land Use Element of the Comprehensive Plan designates the lot
"Downtown Pasco Overlay District;" the Downtown Pasco Overlay District
designation allows for C-2 zoning and may be developed with Membership
Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card
Rooms, Bingo Parlors, and Dance Halls, all of which are allowed in this area.
Per Ordinance 4658, the overlay standards are to be applied in addition to
and in combination with all other district and development regulations
contained in Title 25 Zoning. The requirements of the overlay district take
precedence over the requirements of the underlying zoning district
regulations.
11.7 Such other information as the Hearing Examiner requires.
11. 7 .1 The rezone application is consistent with and meets the intent of the
Comprehensive Plan, and City Council Goals. The opportunity for retail
Z 2023 001
Mendoza Rezone
Page 3 of 5
Page 66 of 225
commercial uses in this area supports the Land Use Element of the
Comprehensive Plan.
12.Applicant wishes to use the north side of the site for a Sports Bar.
13.The initial review criteria for considering a rezone application are explained in PMC.
25.88.030.
14.The rezone application is consistent with the Pasco Comprehensive Plan.
15.The rezone would allow for Membership Clubs, Taverns, Billiard & Pool Halls, Amusement
and Game Centers, Card Rooms, Bingo Parlors, and Dance Halls.
16.Public notice of this hearing was sent to property owners within 300 feet of the property and
posted in the Tri-City Herald on May 22, 2023.
17.An open record public hearing after due legal notice was held June 14, 2023, with the
Planning Department staff and public appearing in person and the Hearing Examiner
appearing via videoconference.
18.Appearing and testifying at the hearing was Maria Mendoza. Ms. Mendoza testified that she
was an agent authorized to appear on behalf of the Applicant/property owner. She agreed
with all representations in the staff report.
19.No member of the public appeared at the hearing.
20.The staff report, application materials, agency comments and the entire file of record were
admitted into the record.
21.Any Conclusion of Law that is more correctly a Finding of Fact is hereby incorporated as
such by this reference.
II.RECOMMENDED CONCLUSIONS OF LAW
Before recommending approval of this rezone, the Hearing Examiner has developed findings of fact
from which to draw those conclusions based upon the criteria listed in PMC 25.210.060. The criteria
are as follows:
1.The proposal is in accordance with the goals and policies of the Comprehensive Plan.1.1 The Land Use Element of the Comprehensive Plan designates the lot "Downtown Pasco Overlay District." The Downtown Pasco Overlay District designation allows
for C-2 zoning and may be developed with Membership Clubs, Taverns, Billiard &
Pool Halls, Amusement and Game Centers, Card Rooms, Bingo Parlors, and Dance
Halls.
2.The effect of the proposal on the immediate vicinity will not be materially detrimental.
2.1 The "Downtown Pasco Overlay District" designation allows for C-2 zoning and may
be developed with Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card Rooms, Bingo Parlors, and Dance Halls. The application for
rezone is consistent with the Comprehensive Plan Land Use Element and meets the
intent of the Goals and Policies for the property. The proposal will not be materially
detrimental to the immediate vicinity. The development would be cohesive with the
multi-units developed to the south of the property.
3.There is merit and value in the proposal for the community as a whole.
Z 2023 001
Mendoza Rezone
Page 4 of 5
Page 67 of 225
3 .1 The proposed zoning de signation is consistent with the Comprehensive Plan Land
Use Map and the Goals and Policies as adopted by the Pasco City Council.
4.Conditions should be imposed in order to mitigate any significant adverse impacts from the
proposal.
4.1 The rezone application and anticipated project are subject to the regulations and
requirements of the Pasco Municipal Code and the City of Pasco Design and
Construction Standards.
5.A Concomitant Agreement should be entered into between the City and the petitioner, and if
so, the terms and conditions of such an agreement.
5 .1 If or when applicants pursue the development of this property, they will be required
to conform to design standards established by the PMC. No Concomitant Agreement
is considered necessary for this application.
6.Any Finding of Fact that is more correctly a Conclusion of Law is hereby incorporated as
such by this reference.
III.RECOMMENDED DECISION
Based on the above Recommended Findings of Fact and Conclusions of Law, the Hearing Examiner
RECOMMENDS APPROVAL, that Lots 13-16, Block 14, Gerry's Addition to Pasco (528 West
Clark Street; Parcel 112042085), be rezoned from C-1 (Retail Business District) to C-2 (Central
Business District).
Dated this 1i_ day of June, 2023.
CITY OF SCO HEARING EXAMINER
.�
Z 2023 001
Mendoza Rezone
Page 5 of 5
Page 68 of 225
Page 69 of 225
REPORT TO HEARING EXAMINER
PUBLIC HEARING
City Hall – 525 North Third Avenue – Remote
WEDNESDAY, 14 June 2023
6:00 PM
1
MASTER FILE #: Z 2023-001
APPLICANT:Maria Mendoza
824 S 8th Avenue
Pasco WA 99301
REQUEST: REZONE: MendozaRezonefrom C-1 (Retail Business District) to
C-2 (Central Business District)
BACKGROUND
1.PROPERTY DESCRIPTION:
Legal: Lots 13-16, Block 14, Gerry’s Addition to Pasco (528 West Clark Street; Parcel 112042085).
General Location: Said property is located at the southeast corner of North 5
th Avenue and West
Clark Street, Pasco, Franklin County, WA.
Property Size: Approximately .32 acres (13,999.50 square feet)
2.ACCESS: The parcel has access from North 5th Avenue and West Clark Street.
3.UTILITIES:Municipal water and sewer are available in the alley to the south of the property.
4.LAND USE AND ZONING: The site is zoned C-1 (Retail Business District) and is developed with a
former drive-through bank structure. Surrounding properties are zoned and developed as follows:
NORTH: C-1 Vacant
EAST: C-2 Retail Businesses
SOUTH: C-2 Vacant
WEST: C-1 Retail Businesses
5.Comprehensive Plan:The Comprehensive Plan designates this site as “Downtown Overlay
District.” The Downtown Overlay District designation allows for O, BP, C-1, C-2, C-3, and CR zoning;
neighborhood, community and regional shopping and specialty centers, business parks, service
and office uses may all be considered for this designation. As well, properties located within the
newly created “Downtown Pasco Overlay District” (Ordinance 4658) are subject to the overlay
district regulations. Per Ordinance 4658, the overlay standards are to be applied in addition to
and in combination with all other district and development regulations contained in Title 25
Zoning. The requirements of the overlay district take precedence over the requirements of the
underlying zoning regulations.
6.ENVIRONMENTAL DETERMINATION:The City of Pasco is the lead agency for this project. Based
on the State Environmental Policy Act (“SEPA”) checklist, Comprehensive Plan, applicable
Page 70 of 225
2
regulations, and other information, a threshold determination resulting in a Determination of
Non-Significance (DNS) was issued for this project in May 10, 2023, under WAC 197-11-158.
ANALYSIS
Request
Maria Mendoza has submitted a rezone application (Z 2023-001) from C-1 (Retail Business District) to C-2
(Central Business District), for Lots 13-16, Block 14, Gerry’s Addition to Pasco (528 West Clark Street;
Parcel 112042085), located at the southeast corner of North 5th Avenue and West Clark Street, Pasco,
Franklin County, WA.
Site
The site comprises approximately .32 acres (13,999.50 square feet) and is developed with a former drive-
through bank structure.
History
The site was added to the Town of Pasco in 1907 as part of Gerry’s Addition to Pasco. The site was rezoned
from C-2 to C-1 in 1996 (Ordinance 3197) with a concomitant agreement, which included the following
prohibited uses:
a) Membership Clubs
b) Taverns
c) Billiard & Pool Halls
d) Amusement and Game Centers
e) Card Rooms, Bingo Parlors, Dance Halls
f) Sign Shops
g) Veterinarian Clinics
These prohibitions reflected many of the prohibitions for the C-2 zoning district at the time. In 2021 Pasco
City Council approved Ordinance 4556, allowing all the above formerly prohibited uses except Sign Shops
and Veterinarian Clinics in the C-2 zoning district. Most of these uses are not explicitly allowed in the C-1
zoning district. Applicant wishes to use the north side of the site for a Sports Bar. On April 17, 2023, City
Council approved Ordinance 4658, amending Pasco Municipal Code Chapter 25.95 and creating the
“Downtown Pasco Overlay District.” Per Ordinance 4658, the overlay standards are to be applied in
addition to and in combination with all other district and development regulations contained in Title 25
Zoning. The requirements of the overlay district take precedence over the requirements of the underlying
zoning regulations.
Rezone Criteria
The initial review criteria for considering a rezone application are explained in PMC. 25.88.030. The criteria
are listed below as follows:
1. The date the existing zone became effective:
The site was rezoned to C-1 (Retail Business District) zoning in in 1996 (Ordinance 3197) with a concomitant
agreement.
2. The changed conditions, which are alleged to warrant other or additional zoning:
The site was rezoned from C-2 to C-1 in 1996 (Ordinance 3197) with a concomitant agreement, which
prohibited Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card Rooms,
Page 71 of 225
3
Bingo Parlors, Dance Halls, Sign Shops, and Veterinarian Clinics, reflecting prohibitions for the former C-2
zoning district. City Council subsequently approved Ordinance 4556 in 2021, allowing all these uses except
Sign Shops, and Veterinarian Clinics in the C-2 zoning district. Applicant wishes to use the north side of the
site for a Sports Bar, which the concomitant agreement currently prohibits.
The site is located within the newly created “Downtown Pasco Overlay District” (Ordinance 4658) and is
subject to the overlay district regulations. Per Ordinance 4658, the overlay standards are to be applied in
addition to and in combination with all other district and development regulations contained in Title 25
Zoning. The requirements of the overlay district take precedence over the requirements of the underlying
district regulations.
3. Facts to justify the change on the basis of advancing the public health, safety and general welfare:
The rezone application is consistent with the Pasco Comprehensive Plan, which has been determined to be
in the best interest of advancing public health, safety, and general welfare of the community. The rezone
would allow for Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card
Rooms, Bingo Parlors, and Dance Halls, none of which are famous for advancing the public health, safety
and general welfare.
4. The effect it will have on the value and character of the adjacent property and the Comprehensive
Plan:
A change in zoning classification may ultimately result in the development of a Sports Bar, which would be
considered appropriate for this land use designation, in alignment with the Land Use Element of the
Comprehensive Plan.
The rezone application is consistent with and meets the intent of the goals and policies of the
Comprehensive Plan.
5. The effect on the property owner or owners if the request is not granted:
If the site remains with the current zoning designations the site may remain underutilized.
6. The Comprehensive Plan land use designation for the property
The Land Use Element of the Comprehensive Plan designates the lot “Downtown Pasco Overlay District;”
the Downtown Pasco Overlay District designation allows for C-2 zoning and may be developed with
Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card Rooms, Bingo
Parlors, and Dance Halls, all of which are allowed in this area.
Per Ordinance 4658, the overlay standards are to be applied in addition to and in combination with all
other district and development regulations contained in Title 25 Zoning. The requirements of the overlay
district take precedence over the requirements of the underlying zoning district regulations.
7. Such other information as the Hearing Examiner requires
The rezone application is consistent with and meets the intent of the Comprehensive Plan, and City Council
Goals. The opportunity for retail commercial uses in this area supports the Land Use Element of the
Comprehensive Plan.
Page 72 of 225
4
STAFF FINDINGS OF FACT
Findings of fact must be entered from the record. The following are initial findings drawn from the
background and analysis section of the staff report. The Hearing Examiner may add additional findings to
this listing as the result of factual testimony and evidence submitted during the open record hearing.
1. Public notice of this hearing was sent to property owners within 300 feet of the property and
posted in the Tri-City Herald on 22 May 2023.
2. Applicant wishes to rezone the property at 528 West Clark Street from C-1 (Retail Business
District) to C-2 (Central Business District).
3. The site is located on Lots 13-16, Block 14, Gerry’s Addition to Pasco (Parcel 112042085).
4. The site is located at the southeast corner of North 5th Avenue and West Clark Street.
5. The site comprises approximately .32 acres (13,999.50 square feet)
6. The site is developed with a former drive-through bank structure.
7. The site was added to the Town of Pasco in 1907 as part of Gerry’s Addition to Pasco.
8. The site was rezoned from C-2 to C-1 in 1996 (Ordinance 3197).
9. The rezone included a concomitant agreement, which prohibited:
a. Membership Clubs
b. Taverns
c. Billiard & Pool Halls
d. Amusement and Game Centers
e. Card Rooms, Bingo Parlors, Dance Halls
f. Sign Shops
g. Veterinarian Clinics
10. These prohibitions reflected many of the prohibitions for the C-2 zoning district at the time.
11. In 2021 Council approved Ordinance 4556, allowing all the above formerly prohibited uses except
Sign Shops and Veterinarian Clinics in the C-2 zoning district.
12. On April 17, 2023, City Council approved Ordinance 4658, amending Pasco Municipal Code
Chapter 25.95 and creating the “Downtown Pasco Overlay District.”
13. Per Ordinance 4658, the overlay standards are to be applied in addition to and in combination
with all other district and development regulations contained in Title 25 Zoning.
14. The requirements of the overlay district take precedence over the requirements of the underlying
zoning regulations.
15. Applicant wishes to use the north side of the site for a Sports Bar.
16. The initial review criteria for considering a rezone application are explained in PMC. 25.88.030.
17. The rezone application is consistent with the Pasco Comprehensive Plan,
18. The rezone would allow for Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and
Game Centers, Card Rooms, Bingo Parlors, and Dance Halls.
TENTATIVE CONCLUSIONS BASED ON INITIAL STAFF FINDINGS OF FACT
Before recommending approval or denial of a rezone, the Hearing Examiner must develop findings of fact
from which to draw its conclusions based upon the criteria listed in PMC 25.210.060. The criteria are as
follows:
1. The proposal is in accordance with the goals and policies of the Comprehensive Plan.
The Land Use Element of the Comprehensive Plan designates the lot “Downtown Pasco Overlay District.”
The Downtown Pasco Overlay District designation allows for C-2 zoning and may be developed with
Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card Rooms, Bingo
Parlors, and Dance Halls.
Page 73 of 225
5
Per Ordinance 4658, the overlay standards are to be applied in addition to and in combination with all
other district and development regulations contained in Title 25 Zoning. The requirements of the overlay
district take precedence over the requirements of the underlying district regulations.
2. The effect of the proposal on the immediate vicinity will not be materially detrimental.
The “Downtown Pasco Overlay District” designation allows for C-2 zoning and may be developed with
Membership Clubs, Taverns, Billiard & Pool Halls, Amusement and Game Centers, Card Rooms, Bingo
Parlors, and Dance Halls..
The application for rezone is consistent with the Comprehensive Plan Land Use Element and meets the
intent of the Goals and Policies for the property. The proposal will not be materially detrimental to the
immediate vicinity.
The development would be cohesive with the multi-units developed to the south of the property.
3. There is merit and value in the proposal for the community as a whole.
The proposed zoning designation is consistent with the Comprehensive Plan Land Use Map and the Goals
and Policies as adopted by the Pasco City Council.
4. Conditions should be imposed in order to mitigate any significant adverse impacts from the
proposal.
The rezone application and anticipated project are subject to the regulations and requirements of the
Pasco Municipal Code and the City of Pasco Design and Construction Standards.
5. A Concomitant Agreement should be entered into between the City and the petitioner, and if so,
the terms and conditions of such an agreement.
If or when applicants pursue the development of this property, they will be required to conform to design
standards established by the PMC. No Concomitant Agreement is considered necessary for this application.
RECOMMENDATION
Staff recommends based on the Findings of Fact and Conclusions herein, that Lots 13-16, Block 14, Gerry’s
Addition to Pasco (528 West Clark Street; Parcel 112042085), be rezoned from C-1 (Retail Business District)
to C-2 (Central Business District).
Page 74 of 225
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Looking NorthPage 80 of 225
Looking NortheastPage 81 of 225
Looking EastPage 82 of 225
Looking SoutheastPage 83 of 225
Looking SouthPage 84 of 225
Looking SouthwestPage 85 of 225
Looking WestPage 86 of 225
Looking NorthwestPage 87 of 225
SitePage 88 of 225
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AGENDA REPORT
FOR:City Council August 2, 2023
TO:Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM:Eric Ferguson, City Attorney
City Manager
SUBJECT:Ordinance No. 4673 - Amending the Pasco Municipal Code Chapter
9.45 Related to the Blake Fix (Washington State Engrossed Second
Substitute Senate Bill 5536)
I.REFERENCE(S):
Ordinance
Second Engrossed Second Substitute Senate Bill 5536
II.ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to adopt Ordinance No. 4673, amending the Title of the City
of Pasco Municipal Code Chapter 9.45 “Offenses Involving Drugs”; amending
Section 9.45.040; repealing Sections 9.45.010, 9.45.020, 9.45.030, 9.45.050.
9.45.051, 9.45.090, 9.45.085, 9.45.080, 9.45.052. 9.45.060, 9.45.070,
9.45.100, 9.45.110, and 9.45.130, and, further authorize publication by
summary only..
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 the
Governor gave 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
Page 99 of 225
will go into effect, and a potential regional approach to addressing factors
related to this new law with neighboring jurisdictions and court officials.
At the July 24th Workshop, Council and staff continued the discussion on
potential next steps for local drug use and possession enforcement under this
new law as a part of a much larger discussion on homelessness, drug use,
crime, and the effects on the local community.
This current draft ordinance is in response to Part II of the discussion that
focused on what tools the City currently utilizes to address these issues, and
what additional tools could be helpful to implement the City’s priorities.
V.DISCUSSION:
Staff recommends that Council adopt the ordinance amending PMC Title ____
to ensure that the City's PMC complies with the Washington State law that will
go into effective on August 15, 2023.
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Ordinance Amending PMC Chapter 9.45 - 1
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, AMENDING THE TITLE OF CITY OF PASCO MUNICIPAL
CODE CHAPTER 9.45 “OFFENSES INVOLVING DRUGS”; AMENDING
SECTION 9.45.040; REPEALING SECTIONS 9.45.010, 9.45.020, 9.45.030,
9.45.050. 9.45.051, 9.45.052. 9.45.060, 9.45.070, 9.45.080, 9.45.085, 9.45.090,
9.45.100, 9.45.110, AND 9.45.130.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO ORDAIN AS FOLLOWS:
Section 1. Chapter 9.45 entitled “Offenses Involving Drugs” of the Pasco Municipal
Code shall be and hereby is amended to “Regulating Use and Possession of Controllled Substances
and Drug Paraphernalia.”
Section 2. Section 9.45.010 entitled “Loitering for the purpose of engaging in drug-
related activity” of the Pasco Municipal Code shall be and herein is repealed in its entirety.
Section 3. Section 9.45.020 entitled “Drug paraphernalia – Definitions” shall be and
hereby is repealed in its entirety.
Section 4. Section 9.45.030 entitled “Drug paraphernalia – Unlawful conduct” of the
Pasco Municipal Code shall be and hereby is repealed in its entirety.
Section 5. Section 9.45.040 entitled “Marijuana – Definition” of the Pasco Municipal
Code shall be and hereby is amended and shall read as follows:
9.45.040 Marijuana – Definition.RCW Sections Adopted.
(1) As used herein, the word “marijuana” means all parts of the plant Cannabis,
whether growing or not; with a THC concentration greater than 0.3 percent on a
dry weight basis; the seeds thereof; the resin extracted from any part of the plant;
and every compound, manufacture, salt, derivative, mixture, or preparation of the
plant, its seeds or resin. The term does not include:
(a) The mature stalks of the plant, fiber produced from the stalks, oil or
cake made from the seeds of the plant, any other compound, manufacture,
salt, derivative, mixture, or preparation of the mature stalks (except the resin
extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant
which is incapable of germination; or
(b) Industrial hemp as defined in RCW 15.120.010.
(2) For purposes of this chapter, “THC concentration” means percent of delta -
9 tetrahydrocannabinol content per dry weight of any part of the plant Cannabis, or
per volume or weight of marijuana product, or the combined percent of delta-9
tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant
Cannabis regardless of moisture content.
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Ordinance Amending PMC Chapter 9.45 - 2
The following RCW sections, as now or hereafter amended, are hereby adopted by
reference as a part of this Chapter in all respects as though such sections were set
forth herein in full:
RCW 69.50.101 – Definitions;
RCW 69.50.102 – Drug Paraphernalia – Definitions;
RCW 69.41.010 – Definitions (Legend Drugs);
RCW 69.50.4011 – Counterfeit Substances – Penalties;
RCW 69.50.4013 – Possession of controlled substance – Penalty – Possession of
useable cannabis, cannabis concentrates, or cannabis-infused products – Delivery;
RCW 69.50.4014 – Possession of forty grams or less of cannabis – Penalty;
RCW 69.41.030 – Sale, delivery, or possession of legend drug without prescription
or order prohibited – Exceptions – Penalty;
RCW 69.50.412 – Prohibited acts: E- Penalties; and
RCW 69.50.4121 – Drug paraphernalia – Selling or giving – Penalty.
[Ord. 4417 § 1, 2019; Ord. 3489 § 5, 2001; Code 1970 § 9.38.040.]
Section 6. Section 9.45.050 entitled “Marijuana – Unlawful possession” of the Pasco
Municipal Code shall be and hereby is repealed in its entirety.
Section 7. Section 9.45.051 entitled “Marijuana – Possession unlawful for persons
under 21” of the Pasco Municipal Code shall be and hereby is repealed in its entirety.
Section 8. Section 9.45.052 entitled “Public consumption - Violation” of the Pasco
Municipal Code shall be and hereby is repealed in its entirety.
Section 9. Section 9.45.060 entitled “Sale, delivery, or possession of legend drug
without prescription or order prohibited – Exceptions” of the Pasco Municipal Code shall be and
hereby is repealed in its entirety.
Section 10. Section 9.45.070 entitled “Forfeiture” of the Pasco Municipal Code shall be
and hereby is repealed in its entirety.
Section 11. Section 9.45.080 entitled “Penalties – Mandatory minimums” of the Pasco
Municipal Code shall be and hereby is repealed in its entirety.
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Ordinance Amending PMC Chapter 9.45 - 3
Section 12. Section 9.45.085 entitled “Medical marijuana – Affirmative defenses” of
the Pasco Municipal Code shall be and hereby is repealed in its entirety.
Section 13. Section 9.45.090 entitled “Drug-free zone declared” of the Pasco Municipal
Code shall be and hereby is repealed in its entirety.
Section 14. Section 9.45.100 entitled “Prohibited conduct within drug-free zone” of the
Pasco Municipal Code shall be and hereby is repealed in its entirety.
Section 15. Section 9.45.110 entitled “Defenses” of the Pasco Municipal Code shall be
and hereby is repealed in its entirety.
Section 16. Section 9.45.130 entitled “Chapter cumulative” of the Pasco Municipal
Code shall be and hereby is repealed in its entirety.
Section 17. Severability. If any section, subsection, sentence, clause, phrase or word
of this Ordinance is held to be 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 18. 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 federal laws, rules, or regulations; or
numbering or referencing of Ordinances or their sections and subsections.
Section 19. This Ordinance shall take full force and effect five (5) days after approval,
passage and publication as required by law.
PASSED by the City Council of the City of Pasco, Washington, this ____ day of
________________, 2023.
_____________________________
Blanche Barajas
Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ ________________________________
Debra Barham, CMC Kerr Ferguson Law, PLLC
City Clerk City Attorneys
Published: ______________________
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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
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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 105 of 225
(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 106 of 225
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 107 of 225
(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 108 of 225
(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 109 of 225
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 110 of 225
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 111 of 225
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 112 of 225
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 113 of 225
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 114 of 225
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 115 of 225
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 116 of 225
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 117 of 225
(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 118 of 225
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 119 of 225
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 120 of 225
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 121 of 225
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 122 of 225
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 123 of 225
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 124 of 225
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 125 of 225
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 126 of 225
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 127 of 225
(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 128 of 225
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 129 of 225
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 130 of 225
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 131 of 225
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 132 of 225
(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 133 of 225
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 134 of 225
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 135 of 225
(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 136 of 225
(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 137 of 225
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 138 of 225
(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 139 of 225
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 140 of 225
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 141 of 225
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 142 of 225
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 143 of 225
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 144 of 225
$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 145 of 225
(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 146 of 225
(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 147 of 225
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 148 of 225
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 149 of 225
(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 150 of 225
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 151 of 225
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 152 of 225
AGENDA REPORT
FOR:City Council August 2, 2023
TO:Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM:Darcy Buckley, Finance Director
Finance
SUBJECT:Ordinance No. 4674 - Issuance of 2023 Bond - Limited Tax Obligation
(LTGO) Bond
I.REFERENCE(S):
Ordinance
Bond Schedules
II.ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION:contracting to relating No. 4374, adopt to move I Ordinance
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 for design, construction and equipping of Fire Station No. 85,
completion of improvements of the animal control annex building including
furniture, fixtures and equipment, improvements at the Gesa Stadium, and
capital capital other and Complex, Pool the at improvements Memorial
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 other related matters and, further, authorize publication by
summary only.
III.FISCAL IMPACT:
Limited Tax General Obligation Bond (LTGO) not to exceed $14M with
estimated average annual debt service of $1.1M.
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 assists in creation of the City's capital budget.
Page 153 of 225
The 2023-2024 biennial budget included a limited tax general obligation
Bond 85. Station of addition Fire support to issuance debt (LTGO) the
proceeds offset design, construction and equipping of the station facility. An
estimated value of debt service was included in the 2023 - 2024 biennial
budget.
As part of the 2019 Limited Tax General Obligation Bond issuance, projects at
the Animal Control Facility and Gesa Stadium were included. The Animal
Control of Stadium Gesa A portion is construction Facility underway.
Improvements have been completed. A second phase of improvement is
advertised for bid. A previous bid request was unsuccessful.
In preparation of the 2023 debt issuance, it was determined that three projects
required LTGO funding in addition to the Fire Station 85 project. Those projects
are Animal Control Facility Annex, Gesa Stadium Improvements, and Memorial
Pool Complex Improvements. The improvements to be funded for each of
these projects will serve to augment functional capacity and support service
provision for the community. Completion of the Gesa Stadium Improvements
are being made to comply with the City's agreement with Minor League
Baseball. The City was recently awarded a grant of $2.95M to fund Gesa
Stadium Improvements that will be included in a subsequent phase as part of
the 2023 -2025 State Capital Budget.
V.DISCUSSION:
LTGO bonds, also called "councilmanic" bonds or non-voted debt, may be issued
by a vote of the legislative body. Because voters have not been asked to approve
additional taxes to fund the principal and interest payments necessary to service
the debt, General Fund revenues are pledged to pay the debt service on LTGO
bonds. The major revenue sources of the General Fund are Property Tax Levy,
Sales Tax distributions from the State of Washington, and Utility Tax Revenue.
These revenues also fund government services such as Police, Fire, Parks,
Community City services other and Finance, Development, Administration
deemed necessary by Council.
The proposed bond projects include:
Project Name Bond
Proceeds Benefit
Fire Station 85 $8,400,000
Expands service capacity thereby
supporting response time. Recent
SAFER grant hires are available to
support station manning.
Stadium Gesa $2,000,000 Improvements required as part of
Page 154 of 225
Improvements agreement with Minor League
Baseball. Improves facility for the
benefit of home and visitor teams.
Improvements also benefit fans and
visitors using the Gesa Stadium
complex.
Animal Control Facility
Annex $1,750,000
Refurbishing the existing building to
serve as an annex will prove to be
an gain to economical means
functional space in the newly
constructed facility for animal care
and housing. Being located nearby,
the for Annex provides area
storage, laundry facilities and other
facility of efficiency support for
operations, as well.
Memorial Pool Complex
Improvements $ 1,250,000
The 2023 -2024 budget includes
the installation of a bubble to cover
Memorial near allow for Pool to
year around use. Cost surrounding
infrastructure expense, both
necessary for installation and to
augment community use, are
included in this bond request. Year
around a pool use, minus small
closure for maintenance, will allow
more opportunities for swim lessons
and provide capacity to partner with
local school team programs.
Placeholder for bond
closure costs $600,000
Total Bond Value $14,000,000
The law pertaining to the issuance of bonds is highly specialized. City staff has
been working with special bond counsel, financial advisors, and underwriters to
ensure compliance with all applicable City, State and Federal laws. Attached is a
draft schedule that outlines of the steps in this process.
The interest rate on the Bonds will be based on the market interest at time of
issuance. However, per the proposed Ordinance, sale of the bond will disallows
interest exceeding 6.00%, and the true interest costs to the City for the bonds
may not exceed 5.0%. Anticipated annual debt service on the bond, principal and
interest, is estimated at $1.1M per year. This item was discussed at the July 24th
Council Workshop meeting. Staff recommends approval by Council.
Page 155 of 225
FG: 101461882.5
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
Page 156 of 225
-i-
FG: 101461882.5
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: 101461882.5
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: 101461882.5
(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 m echanism 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: 101461882.5
(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: 101461882.5
(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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5
FG: 101461882.5
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: 101461882.5
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 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, 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: 101461882.5
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: 101461882.5
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: 101461882.5
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 redemption of
Bonds.
Page 166 of 225
10
FG: 101461882.5
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:
Page 167 of 225
11
FG: 101461882.5
(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.
Page 168 of 225
12
FG: 101461882.5
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 169 of 225
Exhibit A
A-1
FG: 101461882.5
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
Page 170 of 225
A-2
FG: 101461882.5
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.
Page 171 of 225
Exhibit B
B-1
FG: 101461882.5
[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
Page 172 of 225
B-2
FG: 101461882.5
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 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.
Page 173 of 225
B-3
FG: 101461882.5
(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 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.
Page 174 of 225
FG: 101461882.5
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 175 of 225
11900 NE 1st Street, Suite 300 Bellevue, Washington 98005
City of Pasco, Washington
Limited Tax General Obligation Bonds, 2023A (Tax‐Exempt)
Schedule of Events (July 27, 2023)
DATE EVENT RESPONSIBILITY
Complete Kick‐off Call ALL
Complete Data Request for Preliminary Official Statement (“POS”)
Sent to the City
BC
Complete Draft of Bond Ordinance Available for Comment BC
Complete Comments Due on Bond Ordinance ALL
Complete Data Request Returned to Bond Counsel City
Complete Second Draft Bond Ordinance Available for Comment BC
Complete Draft of POS Available for Comment BC
Complete Second Draft POS Available for Comment BC
Complete Call / Meeting on Financing Documents ALL
Complete Bond Ordinance Provided for Council Packets BC, City
Mon, Jul 24 Council Meeting – Introduce Bond Ordinance City, BC, MA
Thu, Jul 27 POS Available for Comment BC
Thu, Aug 3 Comments Due on POS ALL
Thu, Aug 3 Due Diligence Call (1:30‐2:30 pm) ALL
Mon, Aug 7 Council Meeting – Approve Delegation Bond Ordinance City, BC, MA
Tue, Aug 8 Documents to S&P Global Ratings (Rating Agency) MA
Thu, Aug 10 Publication of Bond Ordinance (Thu. after Mon. Meeting) City
Tue, Aug 15 Bond Ordinance Effective (5 Days after Publication) City
Thu, Aug 17 Comments Due on POS City, MA, UW
Wed, Aug 23 Rating Call (1‐3pm) City, MA, UW
Tue, Sep 5 Call to finalize POS ALL
Tue, Sep 5 Receive Rating MA, City
Wed, Sep 6 Post POS BC, UW
Wed, Sep 13 Pre‐Pricing Call (Time TBD) City, MA, UW
Thu, Sep 14 Bond Sale ALL
Fri, Sep 15 Draft Official Statement for Review BC
Mon, Sep 18 Comments Due on Draft Official Statement City, MA, UW
Tue, Sep 19 Official Statement Posted BC
Thu, Sep 28 Closing / Deposit Proceeds with City ALL
__________________________
City: City of Pasco BC: Bond Counsel (Foster Garvey PC)
SMTWTF S SMTWTF S SMTWTF S SMTWTF S
1 12345 12 1234567
2345678 6789101112 3456789 891011121314
9101112131415 13141516171819 10111213141516 15161718192021
16 17 18 19 20 21 22 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28
23 24 25 26 27 28 29 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31
30 31
JULY AUGUST SEPTEMBER OCTOBER
Page 176 of 225
MA: Municipal Advisor (NWMA) UW: Underwriter (D.A. Davidson)
ESC: U.S. Bank
Out of Office:
Darcy: August 7‐11
Scott: August 14‐18
Page 177 of 225
AGENDA REPORT
FOR: City Council August 2, 2023
TO: Adam Lincoln, City Manager City Council Regular
Meeting: 8/7/23
FROM: Darcy Buckley, Finance Director
Finance
SUBJECT: Ordinance No. 4675 - Issuance of 2023 Bonds - Revenue and Refunding
I. REFERENCE(S):
Ordiannce
Preliminary Bond Schedule
II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS:
MOTION: I move to adopt Ordinance No. 4675, 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 and, further, authorize
publication by summary only.
III. FISCAL IMPACT:
Revenue and Refunding Bond not to exceed $38M with estimated average
annual debt service of $2.53M. Proceeds of Revenue Bond include sufficient
funding to refund (refinance) outstanding 2013 Revenue Bonds, reducing
ongoing reserve requirements previously included as a bond covenant.
Page 178 of 225
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 assists in creation of the City's capital budget.
The 2023-2024 Biennial Budget included debt issuance to gain bond proceeds
to offset construction cost. An estimate of resulting debt service for the biennium
was included for the following projects; Water Reservoir Storage - Zone Three,
Irrigation Well Capacity Improvements, Water and Electrical Improvements at
the Process Water Reuse Facility (PWRF), as well as Farm Irrigation System
Improvements to benefit PWRF and Stormwater relining and replacement
improvements.
Included in the 2023 Revenue Bond are projects to install utilities in the
Broadmoor Area. This debt service was not included in the budget. However,
other projects that have benefitted from the award of low -interest State loans or
grants will provide budgetary capacity to absorb the Broadmoor related utility
debt.
V. DISCUSSION:
Each utility is accounted for uniquely. This practice requires recording separate
assets, liabilities, revenues and expenses for each utility. This treatment allows for
accurate rate setting and prevents one utility from subsidizing another. Following
this practice of fund accounting for each utility, assures that the utility and rate
payers benefitting from the bond proceed use with the installation of new
infrastructure, will pay the associated debt service.
The proposed bonded projects include:
Project Name Bond
Proceeds Benefit
Water Reservoir Storage
Tank - Zone 3 $6,000,000
Project will include design and
construction of 3.5 million gallon
water storage tank and extension of
a 24-inch water line along Road 90.
Capacity is system water of
improved.
Well Capacity Upgrades $1,000,000
Project will result in refurbishment of
wells to optimize production of
system. Irrigation water capacity is
improved.
PWRF Water & Electric
Improvements $3,700,000 Project includes design and
construction of 16 inch potable main
Page 179 of 225
extension for operational supply and
fire protection. Also included are
upgrades and undergrounding of
distribution powerlines.
PWRF Irrigation Upgrades $ 6,500,000
Project will replace irrigation pipe
from PWRF to the City-owned farm
circles to support land application of
treated water for disposal.
Stormwater relining and
replacement $1,470,000
Project to replace and repair existing
aging pipe. Prevents groundwater
inflow into system.
Broadmoor Area Utility
Improvements $12,900,000
Project will install City utilities (water,
sewer, irrigation and stormwater) in
Broadmoor Area. Utilities installation
prior to roadway improvements is
wise. All improvements will expand
capacity of systems.
Proceeds for 2013
refunding $5,000,000 Refinancing of existing debt. Allows
for reduced reserve requirements.
Placeholder for bond
closure costs $1,430,000
Total Bond Value $38,000,000
The law pertaining to the issuance of bonds is highly specialized. City staff has
been working with special bond counsel, financial advisors, and underwriters to
ensure compliance with all applicable City, State and Federal laws. Attached is a
draft schedule and outline of the steps in this process.
While municipal bonds are typically tax exempt, bonds issued for improvements at
the PWRF are taxable as the improvements at the PWRF utility does not directly
benefit the general public. Therefore, these bonds often require a greater rate of
return for investors.
For both taxable and tax-exempt issuances, the interest rate on the Bonds will be
based on the market interest at time of issuance. Per the proposed Ordinance, the
results of the sale will allow for no rate of interest exceeding 7.00%, and the true
interest costs to the City for the bonds may not exceed 7.0%. Anticipated annual
debt service on the bond, principal and interest, is estimated at $2.53M per year.
This item was discussed at the July 24th Council Workshop meeting. Staff
recommends approval by Council.
Page 180 of 225
FG: 101442482.6
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 181 of 225
-i-
FG: 101442482.6
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 182 of 225
-1-
FG: 101442482.6
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
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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.
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(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.
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(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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FG: 101442482.6
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: 101442482.6
(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 th e
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 Ass essments 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: 101442482.6
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: 101442482.6
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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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 Purch ase
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 payme nt 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 Redempti on 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 wha tever 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 Designa ted
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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FG: 101442482.6
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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FG: 101442482.6
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
Page 218 of 225
C-2
FG: 101442482.6
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: 101442482.6
(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.
Page 220 of 225
FG: 101442482.6
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 221 of 225
11900 NE 1st Street, Suite 300 Bellevue, Washington 98005
City of Pasco, Washington
Water and Sewer Improvement and Refunding Revenue Bonds, 2023A (Tax‐Exempt)
Water and Sewer Improvement and Refunding Revenue Bonds, 2023B (Taxable)
Schedule of Events (July 27, 2023)
DATE EVENT RESPONSIBILITY
Complete Kick‐off Call ALL
Complete Data Request for Preliminary Official Statement (“POS”)
Sent to the City
BC
Complete Draft of Bond Ordinance Available for Comment BC
Complete Comments Due on Bond Ordinance ALL
Complete Data Request Returned to Bond Counsel City
Complete Second Draft Bond Ordinance Available for Comment BC
Complete Draft of POS Available for Comment BC
Complete Second Draft POS Available for Comment BC
Complete Call / Meeting on Financing Documents ALL
Complete Bond Ordinance Provided for Council Packets BC, City
Mon, Jul 24 Council Meeting – Introduce Bond Ordinance City, BC, MA
Thu, Jul 27 POS Available for Comment BC
Thu, Aug 3 Due Diligence Call (1:30‐2:30pm) City, BC, MA, UW
Thu, Aug 3 Comments Due on POS ALL
Mon, Aug 7 Council Meeting – Approve Delegation Bond Ordinance City, BC, MA
Tue, Aug 8 Documents to S&P Global Ratings (Rating Agency) MA
Thu, Aug 10 Publication of Bond Ordinance (Thu. after Mon. Meeting) City
Tue, Aug 15 Bond Ordinance Effective (5 Days after Publication) City
Thu, Aug 17 Comments Due on POS City, MA, UW
Wed, Aug 23 Rating Call (1:00‐3:00pm) City, MA, UW
Tue, Sep 5 Call to finalize POS ALL
Tue, Sep 5 Receive Rating MA, City
Wed, Sep 6 Post POS BC, UW
Wed, Sep 13 Pre‐Pricing Call (Time TBD) City, MA, UW
Thu, Sep 14 Bond Sale ALL
Fri, Sep 15 Draft Official Statement for Review BC
Mon, Sep 18 Comments Due on Draft Official Statement City, MA, UW
Tue, Sep 19 Official Statement Posted BC
Thu, Sep 28 Closing / Deposit Proceeds with City and U.S. Bank ALL
Tue, Dec 26 2013A and 2013T Bonds Redeemed ESC
SMTWTF S SMTWTF S SMTWTF S SMTWTF S
1 12345 12 1234567
2345678 6789101112 3456789 891011121314
9101112131415 13141516171819 10111213141516 15161718192021
16 17 18 19 20 21 22 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28
23 24 25 26 27 28 29 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31
30 31
JULY AUGUST SEPTEMBER OCTOBER
Page 222 of 225
__________________________
City: City of Pasco BC: Bond Counsel (Foster Garvey PC)
MA: Municipal Advisor (NWMA) UW: Underwriter (D.A. Davidson)
ESC: U.S. Bank
Out of Office:
Darcy: August 7‐11
Scott: August 14‐18
Page 223 of 225
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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