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HomeMy WebLinkAbout2024.01.08 Council Workshop Packet AGENDA City Council Workshop Meeting 7:00 PM - Monday, January 8, 2024 Pasco City Hall, Council Chambers & GoToWebinar Page 1. MEETING INSTRUCTIONS for REMOTE ACCESS - The Pasco City Council Workshops are broadcast live on PSC-TV Channel 191 on Charter/Spectrum Cable in Pasco and Richland and streamed at www.pasco-wa.gov/psctvlive and on the City’s Facebook page at www.facebook.com/cityofPasco. To listen to the meeting via phone, call (914) 614-3221 and use access code 347-125-017. 2. CALL TO ORDER 3. ROLL CALL (a) Pledge of Allegiance 4. VERBAL REPORTS FROM COUNCILMEMBERS 5. ITEMS FOR DISCUSSION 3 - 29 (a) Water Rights Acquisition Fees 30 - 50 (b) Presentation of Butterfield WTP Facility Plan Update - Water Quality Focus 51 - 81 (c) Ordinance - Interim Financing Local Improvement District - Sanitary Sewer - East Urban Growth Area 82 - 101 (d) Resolution - Amendment No. 5 to RH2 Professional Services Agreement for the Phase 2 PWRF Project 102 - 133 (e) Resolution - Change Order No. 7 to Citywide Traffic Signal Improvements Ph 2 Project Page 1 of 135 6. MISCELLANEOUS COUNCIL DISCUSSION 7. EXECUTIVE SESSION 8. ADJOURNMENT 9. ADDITIONAL NOTES 134 - 135 (a) Adopted Council Goals (Reference Only) 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 2 of 135 AGENDA REPORT FOR: City Council January 4, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/8/24 FROM: Maria Serra, Interim Director Public Works SUBJECT: Water Rights Acquisition Fees I. REFERENCE(S): Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion and public comment. III. FISCAL IMPACT: The recently adopted increase in the Water Rights Acquisition Fee will increase revenues to the Water Rights Fund allowing the City to purchase additional water rights at current market rates to help provide sufficient water for future development. IV. HISTORY AND FACTS BRIEF: For Pasco to serve clean drinking water to residents and businesses, the City must have sufficient water rights to allow for the withdrawal of water from the Columbia River. As the city grows, so does the need for additional water rights. Water rights can either be transferred to the City by property owners who have them and wish to develop their properties or purchased from owners willing to sell them. Council recently amended the Pasco Municipal Code to increase the Water Rights Acquisition Fee to current market rates and made this fee applicable to all developments within the City. V. DISCUSSION: Council asked that this issue be brought back to the first workshop meeting in Page 3 of 135 January to have further discussion and allow for public comments. Page 4 of 135 Pasco City Council Meeting January 8, 2024 Water Right Acquisition Fee Adjustment Pa g e 5 o f 1 3 5 Types of Water Rights ◦Potable Water: ◦Surface withdrawal ◦Irrigation Water: ◦Surface and well withdrawal (+ 508.14) ◦PWRF Irrigation Water: ◦508.14 well withdrawal Pa g e 6 o f 1 3 5 Water Rights -Municipal ◦Columbia River ◦Available: 18,883 acre-feet/yr. ◦2022 Usage: 15,873 acre-feet ◦Ecology lease: 10,000 acre-feet/yr. ◦Included in number above ◦$35/acre-ft = $350,000/yr. (2020) Pa g e 7 o f 1 3 5 Water Rights -Municipal Pa g e 8 o f 1 3 5 Water Rights -Irrigation ◦Groundwater + Columbia River ◦Available: 8,660 acre-feet/year ◦Groundwater: 3,459 acre-feet ◦Columbia River water: 2,882 acre-feet ◦508.14 Groundwater: 2,319 acre-feet ◦2022 Usage: 10,490 acre-feet Pa g e 9 o f 1 3 5 Water Rights -Irrigation Pa g e 1 0 o f 1 3 5 Water Rights -Irrigation Pa g e 1 1 o f 1 3 5 Water Rights -Summary Municipal Water ◦18,883 acre-feet/yr.Available ◦15,873 acre-feet Used ◦3,010 acre-feet not used Irrigation Water ◦8,660 acre-feet/year Available ◦10,490 acre-feet Used ◦<1,830> acre-feet overused Balance of Available Water Rights 1,180 acre-feet Pa g e 1 2 o f 1 3 5 Water Rights -PWRF PWRF Irrigation Water ◦Source: 508.14 Groundwater ◦Available withdrawal: 8,230 acre-feet/year ◦2022 Usage: 4,539 acre-feet Pa g e 1 3 o f 1 3 5 Water Rights –PWRF Pa g e 1 4 o f 1 3 5 Water Rights -PMC PMC 13.45.160 –Water & Sewers ◦Extending water beyond the city limit PMC 21.05.120 -Subdivision Regulations ◦Assignment of water rights for subdivision of land Pa g e 1 5 o f 1 3 5 Water Rights Market Value PMC 13.15.030(3) -Determination of Market Value for Payment in Lieu. The market value of water rights shall be determined periodically by the City Engineer, but not less frequently than every five years, based upon a water rights market study or similar investigation of the fair market value of perfected water rights that can be transferred to the City. Pa g e 1 6 o f 1 3 5 Historical Practices ◦Pay In-Lieu Fee ◦Existing Rights Transferred to other properties ◦Water Rights sold at Market Rate ◦Existing Rights Banked for later Transfer or Sale Pa g e 1 7 o f 1 3 5 Adopted PMC Changes ◦Transfers of Potable & Irrigation Water Rights apply to Commercial Developments: ◦Large Industrial Users ◦Food Processors ◦Schools ◦Water ‘Usage’ vs. Water ‘Line Extension’ Pa g e 1 8 o f 1 3 5 Adopted PMC Changes ◦Applies Within and beyond City Limits ◦Increase to Market Rate -$4,150/Acre-Foot ◦Encourages Transfers vs. In-Lieu Fee ◦50% Surcharge –Rights removed w/in 10 yrs ◦Accounts for future value increases ◦Incentive to Transfer rights Pa g e 1 9 o f 1 3 5 Communications Council Workshop 10/10 Developer Meeting 10/23 Council Meeting 11/22 Handouts Developed & Distributed 12/27 ◦Emailed to Developer list ◦Available online ◦Available at City Hall touchpoints Webpage Live-12/27 ◦Online Commenting Option 12/27-1/6 Social Media Posts ◦12/27 ◦1/4/24 KONA Radio Segment ◦1/8 Council Meeting 1/8 Pa g e 2 0 o f 1 3 5 Water Rights Fee PMC 3.35.160 –Revenue and Finance ◦In-lieu Fees: $4,150/acre-foot (as of 11/27/2023) ◦Irrigation Water: 50% of site @ 3 ½ acre- feet/year per acre ◦Potable Water: 0.3 acre-feet/residential unit ◦Transfer Fee (Ecology paperwork) Pa g e 2 1 o f 1 3 5 Water Rights Fee -Example 1-acre site @ 4 units/acre = 0.25 acre/unit Irrigation Water: 0.25 acre/unit x 50% x 3.5 acre-feet/acre = 0.4375 acre-feet/unit Potable Water: 0.3 acre-feet/unit Irrigation + Potable = 0.4375 + 0.3 = 0.7375 acre -feet/unit = 2.95 acre-feet total for 1-acre site 2.95 acre-feet x $4,150/acre-foot = $12,242.50 Total Fee Pa g e 2 2 o f 1 3 5 4 units/acre = 2.95 acre-feet/acre ◦1,180 acre-feet water rights available ◦Serves 400 Acres = 1,600 units 11 units/acre:5.1 acre-feet/acre ◦1,180 acre-feet water rights available ◦Serves 231 Acres = 2,545 units Number of Units needed in 20 years = 23,318 Water Rights -Development Pa g e 2 3 o f 1 3 5 4 units/acre = 2.95 acre-feet/acre ◦1,180 acre-feet water rights available ◦Serves 400 Acres = 1,600 units 11 units/acre:5.1 acre-feet/acre ◦1,180 acre-feet water rights available ◦Serves 231 Acres = 2,545 units Additional Water Rights needed over 20 yrs. at11 units/acre = 10,794 acre-feet Water Rights -Development Pa g e 2 4 o f 1 3 5 Developer ◦4 units/acre = $1,794.50 per housing unit ◦11 units/acre = $1,115.50 per housing unit Water Customer ◦$4/month increase for each $1 million spent to purchase water rights Recent Offer ◦2,147 acre-feet @ $3,850/acre-foot = $8.3 million Water Rights Increase Cost Increase: $2,425/acre-foot Pa g e 2 5 o f 1 3 5 Did Pasco follow all legal requirements for the code change? Water Rights -Legal Pa g e 2 6 o f 1 3 5 Water Rights Acquisition Pa g e 2 7 o f 1 3 5 Pasco City Council Meeting January 8, 2024 Pa g e 2 8 o f 1 3 5 Water Rights Acquisition Water Rights Lease RFP ◦$310/acre-foot per year ◦No Escalators ◦Capital Equivalent of $4,150/acre-foot ◦20-Year Term ◦3 Respondents: ~4,000 acre-feet available ◦Annual Payment: $1,240,000.00 Pa g e 2 9 o f 1 3 5 AGENDA REPORT FOR: City Council November 28, 2023 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/8/24 FROM: Maria Serra, Interim Director Public Works SUBJECT: Presentation of Butterfield WTP Facility Plan Update - Water Quality Focus I. REFERENCE(S): Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion. III. FISCAL IMPACT: No Impact. IV. HISTORY AND FACTS BRIEF: A presentation was given to the City Council on October 11, 2022 for the final Butterfield Water Treatment Plant (Butterfield WTP) Facility Plan by Carollo Engineering staff. To assist in long-term planning for the facility, the City selected Carollo Engineers, Inc. (Carollo) on July 24th, 2020, to help develop a Facility Plan for needed improvements to the Butterfield Water Treatment Plant. The planning process includes a condition assessment and hydraulic analysis of the existing facility to identify improvements needed to continue providing potable water for the next 50 to 80 years. The objectives that guided the development of the plan include: 1. Increasing the current plant's treatment capacity. 2. Increasing resiliency in each of the treatment processes. 3. Providing the ability to expand further. 4. Replacing infrastructure nearing the end of its service life. Page 30 of 135 The Butterfield WTP Facility Plan includes recommended projects for the Butterfield WTP Improvement projects. In summary the proposed series of improvements represent a phased replacement of the facility. V. DISCUSSION: The update of the Butterfield WTP Facility Plan was triggered by recurrent water in blooms) algae and the of (detection events quality cyanotoxin Columbia River since 2021. The presentation recaps the process of the facility planning and previous findings presented to Council. Then focuses on the water necessary the identifying 2021, since events quality experienced treatment processes to mitigate the water quality change in the river, and concludes with a revised capital improvement plan for this facility. This Improvement for Plan Capital includes an accelerated presentation Butterfield WTP, consistent with the recommendations in the facility plan.This is the most efficient manner to implement the projects, yet may not be fiscally attainable. A non-accelerated schedule of projects for this facility has been considered and is an option available for implementation, to be discussed during the City’s Capital Planning process.The non-accelerated schedule creates additional overall cost, but mitigates immediate rate impacts. Ali Leeds, PE, Project Manager from Carollo Engineers will provide a presentation on the Butterfield WTP Facility Plan Update. Page 31 of 135 January 8, 2024 City CouncilMeetingBUTTERFIELD WTPFACILITY PLAN UPDATE Pa g e 3 2 o f 1 3 5 Structured Facility Planning Process 2 Define the performance requirements for the Butterfield WTP Assess existing infrastructure & performance Determine what improvements are needed Develop capital improvements plan Pa g e 3 3 o f 1 3 5 Process Established a Phased Replacement 3 •Previously presented to Council •Phased improvements while avoiding stranding assets •Prioritized highest risk/biggest impact projects earlier Pa g e 3 4 o f 1 3 5 Summer 2021 –Intake Screen Cleaning Challenges 4 •Frequent plugging with aquatic plant material •Insufficient cleaning with automated cleaning system Pa g e 3 5 o f 1 3 5 Summer 2021 –Intake Screen Cleaning Challenges 5 Recommendation: Replace with mechanical brush system Pa g e 3 6 o f 1 3 5 Summer 2021 –Cyanotoxins in the Columbia River Microcystis cf. aeruginosa (Kützing) Kützing. Sample from epilimnion of Lake Mahopac, NY. Source: John D. Wehr, Professor, Fordham University https://www.epa.gov/nutrient-policy- data/cyanobacteriacyanotoxins •Anatoxin-a was detected in the Columbia 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 9/ 1 2 9/ 2 2 10 / 2 10 / 1 2 10 / 2 2 11 / 1 An a t o x i n -a ( u g / L ) Ri v e r W a t e r Butterfield WTP Richland Kennewick West Pasco Health Advisory Level for Treated Water •Concentrations at Pasco’s intakes were low, but present Pa g e 3 7 o f 1 3 5 Butterfield WTP Treatment Capability Summer 2021 –Cyanotoxins the Columbia River •Butterfield WTP has the capability to treat some levels of Anatoxin-a and Cylindrospermopsin •Treatment capability for microcystins is extremely limited Pa g e 3 8 o f 1 3 5 Investigated Comprehensive Treatment Tools •Low maintenance •High maintenance •Complex but automated system Granular Activated Carbon Powder Activated Carbon Ozone •Frequent media changes •Creates lots of solids •Uses oxygen and power •Used when needed •Used when needed •Used continuously –has other process benefits Lowest 20-year NPV Pa g e 3 9 o f 1 3 5 20-Year Capital Improvement Plan 9Notes: (1)Costs are provided in May 2023 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable. Project 1 Electrical Building 2 Misc. Improv & Compressor Repl. 3 Raw Water Pump Station Improvements 4 Flocc/Sed Basin Improvements 5 Chemical Building 6 Filters 7 UV Disinfection 8 Flocculation Basins 9 Residuals Improvements (Phase 1) 10 Finished Water Pump Station 11 Ozone (including generation) 12 Residuals Improvements (Phase 2) 13 Admin Building 14 Backwash Lift Station Red. Improv. 15 WTP Repairs Project CIP Phasing (1) Short-Term (2023-2026) Mid-Term (2027-2031) Long-Term (2032-2042) 1 Electrical Building $12,537,000 -- 2 Misc. Improv & Compressor Repl.$412,000 -- 3 Raw Water Pump Station Improvements $6,684,000 -- 5 Chemical Building $18,111,000 -- 6 Filters $1,974,000 $17,762,000 - 8 Flocculation Basins $1,134,000 $10,201,000 9 Residuals Improvements (Phase 1)-$1,328,000 - 10 Finished Water Pump Station -$19,160,000 - 11 Ozone (including generation)$24,930,000 -- 12 Residuals Improvements (Phase 2)--$2,774,000 13 Admin Building -$1,372,000 $12,350,000 14 Backwash Lift Station Red. Improv.--$3,294,000 15 WTP Repairs $182,000 -- 16 Intake Screen Replacement $1,358,000 -- CIP Total (2023 Dollars)(1)$67,322,000 $49,823,000 $18,418,000 Annual Cost (2023 Dollars)(1)$16,831,000 $11,463,000 $993,000 Pa g e 4 0 o f 1 3 5 Questions?Pa g e 4 1 o f 1 3 5 October 10, 2022 City Council MeetingBUTTERFIELD WTP FACILITY PLAN PRIOR PRESENTATION Pa g e 4 2 o f 1 3 5 Structured Facility Planning Process 2 Define the performance requirements for the Butterfield WTP Assess existing infrastructure & performance Determine what improvements are needed Develop capital improvements plan Pa g e 4 3 o f 1 3 5 Following a catastrophic event, _____ of the event, the WTP will deliver _____ demand with water quality. Following a catastrophic event, _____ of the event, the WTP will deliver _____ demand with water quality. Establish Level of Service (LOS) Goals Fo l l o w i n g  A Infrastructure  (major seismic) Ca t a s t r o p h i c  Ev e n t Within one year (state guideline)* Of  th e  Ev e n t   th e  WT P  wi l l  De l i v e r Minimum  viable Pr o d u c t i o n ,  wi t h   Po t a b l e w a t e r  qu a l i t y Infrastructure  (minor seismic) During and immediately  following*Normal Operational During and immediately following Normal Common water quality During and immediately following Normal Uncommon water quality Within 7 days Normal Performance Requirements were defined to identify how we expect the WTP to work *Existing facility not anticipated to provide this level of service. Replaced/retrofitted infrastructure will be designed to meet this level of service. Pa g e 4 4 o f 1 3 5 4 See Table 4.4 of the Facility Plan for names/descriptions of projects corresponding to the numbers. Best value found in balance of maximizing existing with building new Pa g e 4 5 o f 1 3 5 Solution – Phased Replacement 5 Pa g e 4 6 o f 1 3 5 20-Year Capital Improvement Plan 6 • Accommodate improvements at current rates • Phases improvements while avoiding stranding assets • Prioritizes highest risk/biggest impact projects earlier Notes: (1) Costs are provided in May 2021 dollars. Project costs should be escalated for use during budgetary planning. At the time of the writing of this plan, a 4 percent annual escalation rate was deemed reasonable. (2) For this plan, effort was made to sequence and phase projects to align annual expenditures with the City’s rate studies and overall funding availability. Should alternative funding opportunities become available,  some projects may be able to be advanced earlier than the timing shown.  Pa g e 4 7 o f 1 3 5 Near Term Improvements 7 New Chemical and Electrical Building Reconfigured WTP access and parking Misc. repair to key WTP processes Project Total CIP Cost Estimate (2021 Dollars) Year 2023 2024 2025 2026 1 Electrical Building $11,295,000 $1,129,000 $5,083,000 $5,083,000 - 2 Misc. Improvements and Compressor Replacement $371,000 $371,000 - - - 4 Flocculation and Sedimentation Basin Improvements $1,279,000 $1,279,000 - - - 5 Chemical Building $16,317,000 $1,632,000 - - $4,895,000 Pa g e 4 8 o f 1 3 5 Ultimate Treatment Process – Long Term 8 Ozone Pretreatment Administration & Operations Flocculation Filtration Disinfection and Distribution Pumping Space for future expansion Pa g e 4 9 o f 1 3 5 Questions? •Staff recommends approval of a resolution adopting the Butterfield Water Treatment Plant Facility Plan Thank you to City of Pasco staff: - Heath Bateman - Joe West - Jon Padvorac - Maria Serra Pa g e 5 0 o f 1 3 5 AGENDA REPORT FOR: City Council January 4, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/8/24 FROM: Darcy Buckley, Finance Director Finance SUBJECT: Ordinance - Interim Financing Local Improvement District - Sanitary Sewer - East Urban Growth Area I. REFERENCE(S): Draft Ordinance Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Estimated bond anticipation note issuance not to exceed $21M. IV. HISTORY AND FACTS BRIEF: Local Improvement Districts (LIDs) serve as a financing mechanism for the completion of projects that benefit specific properties. When a LID is formed, City staff provides management and oversight for capital project completion while simultaneously procuring financing that allows both the project cost and LID administration cost to be spread over a long-term period of repayment. The cost is borne by benefiting property owners. On May 2, 2022, Council Resolution No. 4174 was approved. This resolution established intent to form a local improvement district for installation of sewer infrastructure improvements in the East Urban Growth Area. On May 23, 2022, Local Improvement District (LID) No. 152, East Urban Growth Area Sanitary Sewer LID, was established with Council approval of Ordinance No. 4592. The LID project supports construction efforts including installation of new sanitary sewer main, a lift station, and other sewer improvements. V. DISCUSSION: Page 51 of 135 During formation of the LID, no property owners within district boundaries protested creation. Each property owner within the LID boundaries were in favor of LID creation. The City did not execute any no-protest agreements with property owners within LID boundaries. Included in this area are 20 parcels comprising approximately 1,100 acres. Parcels in the LID boundaries are in various stages of development. Construction is underway on a Darigold production facility and Pasco School District comprehensive high school number three. Other parcels in the LID area include planned residential developments. Based on current plans, residential development is anticipated to add housing units numbering approximately 1,350. With Council approval of Ordinance No. 4592, the following instruction was outlined:  order to city staff to carry out proposed construction of sewer related improvements,  direction that financial support of related costs for capital improvements to be made by special assessments upon benefiting properties,  provision for issuance of short term financing for project completion,  provision for issuance of long term bond instruments. This debt will subsequently be retired by receipt of special assessments upon benefitting property owners. City-managed construction efforts for the project have been underway since December 2022. All phases of the project have been awarded and are progressing. City staff has been working with an external financing team consisting of a financial advisor, bond counsel and underwriter for many months. The result of this collaboration is this request for approval to proceed with issuing interim financing in the form of bond anticipation notes. The note ordinance includes not-to-exceed limits for the financing including a principal amount of $21M and interest rate of 6.5%. Depending on market conditions when debt issuance occurs, terms of debt may be lower. Interim funding in the form of bond anticipation notes (BAN) are expected to be issued in February of 2024. Once the construction project is finalized, LID property owners will be notified of assessment values composed of construction, financing and administrative cost incurred during construction. A 30-day interest free prepayment period is then available. Following conclusion of the prepayment period, final financing values are known allowing for the issuance of LID bonds. LID bond issuance will result in the retirement of interim financing and establish a repayment schedule for outstanding assessments. Page 52 of 135 Page 53 of 135 DRAFT 12/21/2023 FG: 101434497.4 CITY OF PASCO, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE of the City of Pasco, Washington, relating to contracting indebtedness; authorizing the issuance of local improvement district bond anticipation notes to pay costs relating to the construction of Local Improvement District No. 152 improvements pending the issuance of local improvement district bonds authorized to be issued by Ordinance No. 4592; fixing or setting parameters with respect to certain terms and covenants of the notes; appointing the City’s designated representative to approve the final terms of the sale of the notes; and providing for other related matters. Passed: January 16, 2024 This document prepared by: Foster Garvey P.C. 1111 Third Avenue, Suite 3000 Seattle, Washington 98101 (206) 447-4400 Page 54 of 135 i FG: 101434497.4 TABLE OF CONTENTS Page Section 1 . Definitions............................................................................................................... 1 Section 2 . Findings and Determinations .................................................................................. 4 Section 3 . Authorization of Bonds ........................................................................................... 4 Section 4 . Purpose and Authorization of Notes ....................................................................... 5 Section 5 . Description of the Notes; Appointment of Designated Representative .................. 5 Section 6 . Note Registrar; Registration and Transfer of Notes ............................................... 5 Section 7 . Form and Execution of Notes ................................................................................. 6 Section 8 . Payment of Notes .................................................................................................... 6 Section 9 . Failure To Pay Notes .............................................................................................. 7 Section 10 . Guaranty Fund ........................................................................................................ 7 Section 11 . Use of Note Proceeds .............................................................................................. 8 Section 12 . Redemption and Purchase of Notes ........................................................................ 8 Section 13 . Tax Covenants ........................................................................................................ 9 Section 14 . Official Statement; Continuing Disclosure. ............................................................ 9 Section 15 . Additional Covenants............................................................................................ 10 Section 16 . Execution of Note Purchase Agreement ............................................................... 10 Section 17 . Supplemental and Amendatory Ordinances.......................................................... 10 Section 18 . General Authorization and Ratification ................................................................ 10 Section 19 . Severability ........................................................................................................... 11 Section 20 . Rules of Interpretation .......................................................................................... 11 Section 21 . Effective Date of Ordinance ................................................................................. 12 Page 55 of 135 1 FG: 101434497.4 CITY OF PASCO, WASHINGTON ORDINANCE NO. ________ AN ORDINANCE of the City of Pasco, Washington, relating to contracting indebtedness; authorizing the issuance of local improvement district bond anticipation notes to pay costs relating to the construction of Local Improvement District No. 152 improvements pending the issuance of local improvement district bonds authorized to be issued by Ordinance No. 4592; fixing or setting parameters with respect to certain terms and covenants of the notes; appointing the City’s designated representative to approve the final terms of the sale of the notes; and providing for other 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. (b) “Beneficial Owner” means, with respect to a Note, the owner of any beneficial interest in that Note. (c) “Bond” means each local improvement district bond to be issued to pay and redeem the Notes or any refunding note or notes. (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) “City” means the City of Pasco, Washington, a municipal corporation duly organized and existing under the laws of the State. (f) “City Clerk” means the City Clerk of the City or the successor to the functions of that officer. (g) “City Council” means the legislative authority of the City, as duly and regularly constituted from time to time. (h) “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. (i) “Code” means the United States Internal Revenue Code of 1986, as amended, and applicable rules and regulations promulgated thereunder. Page 56 of 135 2 FG: 101434497.4 (j) “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). (k) “Designated Representative Certificate” means the certificate executed by the Designated Representative on the sale date authorizing the Final Terms of the Notes. (l) “DTC” means The Depository Trust Company, New York, New York, or its nominee. (m) “Final Terms” means the terms and conditions for the sale of the Notes including, but not limited to, the amount, date or dates, denominations, interest rate or rates, payment dates, final maturity, redemption rights, price, and other terms or covenants. (n) “Finance Director” means the Finance Director of the City or such other officer of the City who succeeds to substantially all of the responsibilities of that office. (o) “Fiscal Agent” means the fiscal agent of the State, as the same may be designated by the State from time to time. (p) “Guaranty Fund” means the Local Improvement Guaranty Fund of the City previously established and created pursuant to RCW 35.54.010 and Pasco Municipal Code 3.90.010. (q) “Improvements” has the meaning provided in Ordinance No. 4592, including without limitation, sanitary sewer construction, including site grading, manholes, a lift station and force mains, and sewer gravity pipelines, casings, and appurtenances in the City’s East Urban Growth Area (UGA) Expansion Area ordered in respect of LID No. 152, all as determined necessary and advisable by the City. Incidental costs incurred in connection with carrying out and accomplishing the Improvements, consistent with RCW 39.46.070 and Ordinance No. 4592, may be included as costs of the Improvements. (r) “Interest Payment Date” means each semiannual date on which interest on a Note is due and payable, as set forth in the Note Purchase Agreement. (s) “Issue Date” means, with respect to a Note, the date of initial issuance and delivery of that Note to the Purchaser in exchange for the purchase price of that Note. (t) “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, or any successor or substitute letter relating to the operations procedures of the Securities Depository. (u) “LID No. 152” means Local Improvement District No. 152 of the City of Pasco, Washington created pursuant to Ordinance No. 4592. (v) “Local Improvement Fund” means the Local Improvement Fund created and established by Ordinance No. 4592 in the office of the Finance Director with respect to LID No. 152. Page 57 of 135 3 FG: 101434497.4 (w) “Mayor” means the Mayor of the City or the successor to the functions of that office. (x) “MSRB” means the Municipal Securities Rulemaking Board. (y) “Note Fund” means the Local Improvement District No. 152 Bond Anticipation Note Fund, 2024 of the City authorized by Section 8 of this ordinance. (z) “Note Purchase Agreement” means the note purchase agreement from the Purchaser offering to purchase the Notes and setting forth certain terms and conditions of the issuance, sale and delivery of the Notes, executed by the Designated Representative on behalf of the City pursuant to this ordinance. (aa) “Note Register” means the books or records maintained by the Note Registrar for the purpose of identifying ownership of the Notes. (bb) “Note Registrar” means the Fiscal Agent, or any successor Note Registrar selected by the City. (cc) “Notes” means the Local Improvement District No. 152 Bond Anticipation Notes, 2024, of the City issued pursuant to the terms of this ordinance. (dd) “Owner” means, without distinction, the Registered Owner and the Beneficial Owner. (ee) “Purchaser” means D.A. Davidson & Co., the firm serving as underwriter for the negotiated sale of the Notes. (ff) “Rating Agency” means each nationally recognized rating agency then maintaining a rating on the Notes at the request of the City. (gg) “RCW” means the Revised Code of Washington. (hh) “Record Date” means the Note Registrar’s close of business on the 15th day of the month preceding an Interest Payment Date. With respect to redemption of a Note prior to its maturity, the Record Date shall mean the Note Registrar’s close of business on the date on which the Note Registrar sends the notice of redemption in accordance with Section 12. (ii) Registered Owner” means, with respect to a Note, the person in whose name that Note is registered on the Note Register. For so long as the City utilizes the book–entry system for the Notes under the Letter of Representations, Registered Owner shall mean the Securities Depository. (jj) “Rule 15c2-12” means Rule 15c2-12 promulgated by the SEC under the Securities Exchange Act of 1934, as amended. (kk) “SEC” means the United States Securities and Exchange Commission. Page 58 of 135 4 FG: 101434497.4 (ll) “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. (mm) “State” means the State of Washington. (nn) “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. (oo) “Undertaking” means the undertaking to provide continuing disclosure entered into pursuant to Section 14 of this ordinance. Section 2. Findings and Determinations. The City takes note of the following facts and makes the following findings and determinations: (a) The City Council passed Ordinance No. 4592 and thereby created LID No. 152 for the purpose ordering and financing construction of the Improvements. (b) Pursuant to applicable law, including without limitation chapters 35.45, 35A.40 and 39.46 RCW, the City is authorized to issue the Bonds, including upon the completion of the Improvements and the confirmation of the final assessment roll for LID No. 152, to provide permanent financing for the Improvements. The City intends to issue the Bonds. (c) Pursuant to applicable law, including without limitation chapter 39.50 RCW, the City is authorized to issue short-term obligations in the form of local improvement district bond anticipation notes if local improvement district bonds have been authorized by ordinance. (d) RCW 35.54.060 provides that, for the purpose of maintaining its local improvement guaranty fund, every city shall, at the time of making its annual budget and tax levy, provide for the levy of a sum sufficient, with other sources of the fund, to pay the warrants issued against the guaranty fund during the preceding fiscal year and to establish a balance therein (the “Guaranty Fund Levy”). The statute further provides that the Guaranty Fund Levy in any one year may not exceed the greater of: (1) 12 percent of the outstanding obligations guaranteed by the guaranty fund or (2) the total amount of delinquent assessments and interest accumulated on the delinquent assessments before the levy as of September 1, and that the taxes levied for the maintenance of the local improvement guaranty fund shall be additional to and, if need be, in excess of all statutory and charter limitations applicable to tax levies in the city. (e) In anticipation of the issuance of the Bonds, and in order to provide interim financing for costs of the Improvements, it is in the best interest of the City to issue and sell the Notes to the Purchaser. Section 3. Authorization of Bonds. For the purpose of paying or financing costs of the Improvements and providing funds necessary to pay the Notes, the City shall issue Bonds in such amount and form and with such terms as the City Council determines by ordinance. Proceeds of the Bonds shall be paid into the Note Fund and applied, together with prepaid assessments received from LID No. 152 and other available funds, in the amount sufficient to pay the Notes. Page 59 of 135 5 FG: 101434497.4 Section 4. Purpose and Authorization of Notes. For the purpose of providing all or part of the money required to pay or reimburse the City for costs of the Improvements, make a deposit to the Guaranty Fund, pay interest on the Notes for a period not longer than six months after completion of construction of the Improvements, and pay the costs of issuance of the Notes pending issuance of the Bonds, the City is authorized to borrow money on the credit of the City and issue the Notes with such Final Terms as are determined by the Designated Representative consistent with the parameters set forth in Exhibit A to this ordinance. Section 5. Description of the Notes; Appointment of Designated Representative. The City Manager and the Finance Director, each acting independently, is appointed as the Designated Representative of the City and is authorized and directed to conduct the sale of the Notes, in the manner and upon the terms deemed most advantageous to the City, and to approve the Final Terms of the Notes, with such additional terms and covenants as the Designated Representative deems advisable, within the parameters set forth in Exhibit A. Section 6. Note Registrar; Registration and Transfer of Notes. (a) Registration of Notes. The Notes shall be issued only in registered form as to both principal and interest, and the ownership of the Notes shall be recorded on the Note Register. (b) Note Registrar; Duties. The Fiscal Agent is appointed as initial Note Registrar. The Note Registrar shall keep, or cause to be kept, at its office, sufficient books for purposes of registering the name, mailing address and taxpayer identification number of the Registered Owners of the Notes, and for registering any transfer of Note ownership. The books and records maintained by the Note Registrar for such purpose shall be considered the Note Register for purposes of this Ordinance. The Note Register shall at all times be open to inspection by the City. In addition to maintaining the Note Register, the Note Registrar is authorized and directed to perform the following duties with respect to the Notes: (i) to authenticate the Notes upon the initial issuance thereof by executing the Certificate of Authentication contained thereon; (ii) to authenticate and deliver any Note that is transferred in accordance with the provisions thereof and this ordinance; (iii) to serve as the City’s paying agent for the Notes; (iv) to imprint on each Note transferred or exchanged pursuant to this ordinance the name of the Registered Owner, the principal amount of the Note, the interest rate borne by the Note, and the maturity date of the Note; (v) to cancel the Note returned to the Note Registrar upon the payment in full thereof; and (vi) to carry out all of the Note Registrar’s duties otherwise described in this ordinance and to comply fully with all applicable federal and State laws and regulations respecting the carrying out of those duties. The Note Registrar shall be responsible for its representations contained in the Certificate of Authentication on the Notes. (c) Transfer and Exchange. The Notes may be assigned or transferred only if endorsed in the manner provided thereon and surrendered to the Note Registrar. Any such transfer shall be without cost to the Registered Owner or transferee (other than any cost incurred by the Registered Owner or transferee in preparing and delivering such transfer certificate) and shall be noted on the Note Register. The Note Registrar shall not be obligated to assign or transfer any Note during the 15 days preceding any payment or redemption date. Page 60 of 135 6 FG: 101434497.4 (d) Securities Depository; Book-Entry Only Form. The Designated Representative may determine whether the Notes are to be issued in certificated or fully immobilized book-entry only form. If the Notes are issued in book-entry form, DTC shall be appointed as initial Securities Depository. Each Note initially shall be registered in the name of Cede & Co., as the nominee of DTC. Each Note registered in the name of the Securities Depository shall be held in accordance with the provisions of the Letter of Representations. Registered ownership of any Note 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 Notes are 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 Notes no longer shall be held in book-entry only form and the registered ownership of each Note may be transferred to any person as provided in this ordinance. Neither the City nor the Note 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 Note 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 Note Registrar to the Securities Depository. Section 7. Form and Execution of Notes. (a) Form of Notes; Signatures and Seal. The Notes shall be prepared in a form consistent with the provisions of this ordinance and State law, shall be signed by the Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and shall have the seal of the City (or facsimile reproduction thereof) impressed or printed thereon. If any officer whose signature appears on the Notes ceases to be an officer of the City authorized to sign notes before the Note bearing such officer’s signature is authenticated or delivered by the Note Registrar or issued by the City, that Note nevertheless may be authenticated, delivered and issued and, when authenticated, delivered and issued, shall be as binding upon the City as though that person had continued to be an officer of the City authorized to sign notes. Any Note also may be signed and attested on behalf of the City by any person who, on the actual date of the signing of the Note, is an officer of the City authorized to sign notes, although such person did not hold the required office on the date of issuance of the Notes. (b) Authentication. The Note shall not be valid or obligatory for any purpose, or entitled to the benefits of this ordinance, unless it bears a certificate of authentication manually signed by the Note Registrar stating: “This Note is one of the fully registered City of Pasco, Washington, Local Improvement District No. 152 Bond Anticipation Notes, 2024, described in the Note Ordinance.” A minor deviation in the language of such certificate shall not void a certificate of authentication that otherwise is substantially in the form of the foregoing. The authorized signing of a certificate of authentication shall be conclusive evidence that the Note so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. Section 8. Payment of Notes. Both principal of and interest on the Notes shall be payable solely out of the City’s Local Improvement District No. 152 Bond Anticipation Note Fund, Page 61 of 135 7 FG: 101434497.4 2024 (the “Note Fund”), a special fund that is hereby authorized to be created and maintained by the Finance Director, and the Guaranty Fund, and shall be payable in lawful money of the United States of America. Principal of and interest on each Note registered in the name of the Securities Depository is payable in the manner set forth in the Letter of Representations. Interest on each Note not registered in the name of the Securities Depository is payable by electronic transfer on each Interest Payment Date, or by check or draft of the Note Registrar mailed on such Interest Payment Date to the Registered Owner at the address appearing on the Note Register on the Record Date. However, the City is not required to make electronic transfers except pursuant to a request by a Registered Owner in writing received at least ten days prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Note not registered in the name of the Securities Depository is payable upon presentation and surrender of the Note by the Registered Owner to the Note Registrar. The Notes are not subject to acceleration under any circumstances. The City covenants that on or before the maturity date of the Notes it will issue the Bonds, refunding bond anticipation notes or a combination of the foregoing in an amount sufficient, together with prepaid assessments received from LID No. 152 and other available funds, to pay the Notes when due. Section 9. Failure To Pay Notes. If principal of the Notes is not paid when properly presented for payment on their maturity date or date of prior redemption, the City shall be obligated to pay interest on the Notes from and after their maturity or prior redemption date until the Notes, both principal and interest, are paid in full or until sufficient money for that payment in full is on deposit in the Note Fund, and the City has given the Registered Owner notice that such money is available to make such payment. Section 10. Guaranty Fund. On the Issue Date, proceeds of the Notes in an amount, as determined by the Designated Representative and not exceeding 10 percent of proceeds of the Notes, shall be deposited into the Guaranty Fund such that the balance in the Guaranty Fund equals an amount not less than the balance required to be maintained under this Section. For so long as any of the Notes remain outstanding, the City shall take such actions as may be necessary, consistent with chapters 34.45 and 35.54 RCW and other applicable state law and applicable requirements of the Code, to maintain a minimum balance in the Guaranty Fund equal to 10 percent of the principal amount of all bonds, notes and other obligations secured by the Guaranty Fund, provided, that for the purpose of this calculation, the principal amount of bonds, notes and other obligations secured by the Guaranty Fund shall be reduced by the amount then on deposit in the respective debt service funds held by the City for payment and redemption of such bonds, notes and other obligations. In connection with the City’s annual budget preparation, the Finance Director shall review the amount on deposit in the Guaranty Fund, the amount of delinquent installment payments (including interest thereon) of local improvement district assessments secured by the Guaranty Fund, and the respective amounts reasonably expected to be recovered from foreclosure proceedings pursuant to chapter 35.50 RCW or other applicable law. Based on that review the City shall, pursuant to RCW 35.54.060 and subject to applicable state law and constitutional limitations and applicable requirements of the Code, provide for the levy of a sum sufficient, together with other sources of the Guaranty Fund, to maintain the minimum balance described in the preceding paragraph, and to provide for all payments reasonably expected to be made out of the Guaranty Fund. Page 62 of 135 8 FG: 101434497.4 Interest and earnings from the Guaranty Fund shall be retained within the Guaranty Fund. The Finance Director may establish subaccounts within the Guaranty Fund, from time to time as the Finance Director deems necessary or desirable for purposes of accounting for the investment of money therein. Money in the Guaranty Fund shall be used solely for the payment of bonds, notes and other obligations secured by such fund and as otherwise set forth in chapter 35.54 RCW and other applicable law. Earnings subject to a federal tax or rebate requirement may be withdrawn from the Guaranty Fund and used for those tax or rebate purposes. Any proceeds of Notes remaining in the Guaranty Fund that the City determines will, upon the City’s issuance of Bonds to pay and redeem the Notes, be in excess of the minimum balance required to be held therein under this Section and no longer required for the purposes of the Guaranty Fund, may be withdrawn from the Guaranty Fund and used and applied, together with prepaid assessments received from LID No. 152 and proceeds of the Bonds, to pay principal of and interest on the Notes consistent with applicable law. Section 11. Use of Note Proceeds. The proceeds of the Notes and interest earnings thereon shall be deposited in the Local Improvement Fund and used to pay or reimburse the City for costs of the Improvements, make a deposit to the Guaranty Fund, pay interest on the Notes for a period not longer than six months after completion of construction of the Improvements, and pay the costs of issuance of the Notes. Until needed to pay those costs, the City may invest proceeds of the Notes temporarily in any legal investment. Earnings subject to a federal tax or rebate requirement may be withdrawn from the Local Improvement Fund and used for those tax or rebate purposes. Any proceeds of Notes remaining in the Local Improvement Fund after paying or reimbursing the costs of the Improvements, the costs of issuing the Notes, and for the other purposes set forth in this section, or after the City Council has determined that the expenditure of such Note proceeds for those purposes is no longer necessary or appropriate, may be used to pay principal of and interest on the Notes consistent with applicable law. Section 12. Redemption and Purchase of Notes. (a) Redemption Provisions. The Notes shall have such redemption provisions, if any, as shall be determined by the Designated Representative in accordance with the parameters set forth in Exhibit A to this ordinance. (b) Selection of Notes for Redemption; Partial Redemption. For so long as the Notes are registered in the name of the Securities Depository, if less than all of the principal amount of Notes with the same redemption date is to be redeemed, the Securities Depository shall select the proportion of those Notes to be redeemed in accordance with the Letter of Representations. If the Notes are not registered in the name of the Securities Depository, the Note Registrar shall select the proportion of those Notes with the same redemption date to be redeemed randomly in such manner as the Note Registrar shall determine. All or a portion of the principal amount of any Note that is to be redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding principal amount of any Note is redeemed, upon surrender of that Note to the Note Registrar, there shall be issued to the Registered Owner, without charge, a new Note, bearing the same estimated redemption date and interest rate, in the aggregate principal amount to remain outstanding. Page 63 of 135 9 FG: 101434497.4 (c) Notice of Redemption. Notice of redemption of each Note registered in the name of the Securities Depository shall be given in accordance with the Letter of Representations. Notice of redemption of each other Note, unless waived by the Registered Owner, shall be given by the Note 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 Note 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 Note. (d) Rescission of Redemption Notice. In the case of any redemption, the notice of redemption may state that the City retains the right to rescind the redemption notice by giving a notice of rescission to the affected Registered Owner(s) at any time on or prior to the date fixed for redemption. Any notice of redemption that is so rescinded shall be of no effect, and each Note for which a notice of redemption has been rescinded shall remain outstanding. (e) Effect of Redemption. Interest on the principal portion of each Note called for redemption shall cease to accrue on the date fixed for redemption, unless the notice of redemption is rescinded as set forth above or payment is not made for the Note called for redemption (f) Purchase of Notes. The City reserves the right to purchase any or all of the Notes at any time at any price acceptable to the City plus accrued interest to the date of purchase. Section 13. Tax Covenants. (a) Preservation of Tax Exemption for Interest on the Notes. The City covenants that it will take all actions necessary to prevent interest on the Notes 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 Notes or other funds of the City treated as proceeds of the Notes that will cause interest on the Notes 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 Notes, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Notes. (b) Post-Issuance Compliance. The Finance Director is authorized and directed to adopt, implement, 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 Notes from being included in gross income for federal tax purposes. Section 14. Official Statement; Continuing Disclosure. (a) Preliminary Official Statement Deemed Final. The Designated Representative shall review the form of the preliminary official statement prepared in connection with the sale of the Notes 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 Page 64 of 135 10 FG: 101434497.4 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 Notes of a preliminary official statement that has been deemed final in accordance with this subsection. (b) Approval of Final Official Statement. The City approves the preparation of a final official statement for the Notes to be sold to the public in the form of the preliminary official statement, 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. The City authorizes and approves the distribution by the Purchaser of that final official statement to purchasers and potential purchasers of the Notes. (c) Undertaking to Provide Continuing Disclosure. To meet the requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to a participating underwriter for the Notes, the Designated Representative is authorized and directed to execute a written undertaking to provide continuing disclosure for the benefit of holders of the Notes in substantially the form attached as Exhibit B. Section 15. Additional Covenants. The City covenants that it will (a) proceed with due diligence to construct the Improvements; (b) require contractors to maintain performance bonds and (c) proceed to promptly confirm the assessment roll with respect to LID No. 152 when final costs of the Improvements are known to the City. Section 16. Execution of Note Purchase Agreement. The City Manager and the Finance Director, each acting independently, are authorized to execute as necessary the Note Purchase Agreement on behalf of the City. The Notes will be prepared at City expense and will be delivered to the Purchaser in accordance with the Note Purchase Agreement, together with the approving legal opinion of Bond Counsel regarding the Notes. Section 17. 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 the Registered Owner: (a) To add covenants and agreements that do not materially adversely affect the interests of the Registered Owner, 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 Registered Owner. Section 18. General Authorization and Ratification. The Mayor, the City Manager, the Finance Director, the City Clerk, other appropriate officers of the City and Bond Counsel are severally authorized to take such actions and to create, accept, execute, send, use and rely upon such documents, records and signatures (including in tangible medium, manual, facsimile or electronic form, under any security procedure or platform, and notwithstanding any other City ordinance, resolution, rule or policy) as in their judgment may be necessary or desirable to carry Page 65 of 135 11 FG: 101434497.4 out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of the Notes to the Purchaser and for the proper application, use and investment of the proceeds of the Notes. 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 19. 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, holds 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 20. Rules of Interpretation. In this ordinance, unless the context or use otherwise requires: (a) The terms “hereby,” “hereof,” “hereto,” “herein” and any similar terms refer to this ordinance as a whole and not to any particular section, paragraph, clause or subdivision of this ordinance, and the term “heretofore” means before the date of this ordinance; (b) All pronouns in this ordinance include all other pronouns, and words importing the singular number mean and include the plural number and vice versa; (c) The terms: (i) “includes” and “including” are not limiting; (ii) “or” is not exclusive; and (iii) “person” or “persons” include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons; (d) The cover page, the table of contents and any headings preceding the text of the several sections and paragraphs of this ordinance, and any marginal notes appended to copies hereof, are solely for convenience of reference and do not constitute a part of this ordinance, nor do they affect its meaning, construction or effect; and (e) All references herein to “sections,” “paragraphs, “clauses” and other subdivisions are to the corresponding sections, paragraphs, clauses or subdivisions hereof. Page 66 of 135 12 FG: 101434497.4 Section 21. 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 required by law. PASSED by the City Council of the City of Pasco, Washington, at an open public meeting thereof, this 16th day of January, 2024, and signed in authentication of its passage this 16th day of January, 2024. Pete Serrano, Mayor ATTEST: Debra Barham, City Clerk APPROVED AS TO FORM: Foster Garvey P.C. Bond Counsel Page 67 of 135 Exhibit A A-1 FG: 101434497.4 EXHIBIT A PARAMETERS FOR FINAL TERMS OF THE NOTES i. Principal Amount. The aggregate principal amount of the Notes shall not exceed $21,000,000. ii. Date. Each Note 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 Notes shall be issued in Authorized Denominations. The Notes shall bear any name and additional designation as deemed necessary or appropriate by the Designated Representative or the Bond Registrar. iv. Interest Rate(s). Each Note shall bear interest at the same 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. The rate of interest for the Notes may not exceed 6.50%, and the true interest cost to the City for the Notes may not exceed 6.50%. v. Interest Payment Dates. Interest shall be payable semiannually on such Interest Payment Dates as are acceptable to the Designated Representative, commencing no later than one year after the Issue Date. vi. Maturity Date. The Notes shall mature on an Interest Payment Date acceptable to the Designated Representative that is not later than three years after the Issue Date. vii. Redemption Rights. The Designated Representative may approve redemption provisions contained in the Note Purchase Agreement providing that (A) the Notes shall not be subject to redemption prior to their maturity date, or (B) the Notes shall be subject to redemption, in whole or in part, prior to their maturity date on any date on or after a date acceptable to the Designated Representative at a redemption price equal to the principal amount thereof plus accrued and unpaid interest to the redemption date. viii. Price. The purchase price of the Notes shall not be less than 95% nor more than 110% of the stated principal amount of the Notes. ix. Other Terms & Conditions. The Designated Representative may determine whether it is in the City’s best interest to provide for bond insurance or Page 68 of 135 A-2 FG: 101434497.4 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 69 of 135 Exhibit B B-1 FG: 101434497.4 [Form of] UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE City of Pasco, Washington Local Improvement District No. 152 Bond Anticipation Notes, 2024 The City of Pasco, Washington (the “City”), makes the following written Undertaking for the benefit of holders of the above-referenced Notes (the “Notes”), 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 Notes. Capitalized terms used but not defined below shall have the meanings given in Ordinance No. ____ of the City (the “Note 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 Notes and described in paragraph (b) (“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 Notes: (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 Notes, or other material events affecting the tax status of the Notes; (7) modifications to rights of holders of the Notes, if material; (8) bond calls (other than scheduled mandatory redemptions of Term Notes), if material, and tender offers; (9) defeasances; (10) release, substitution, or sale of property securing repayment of the Notes, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the City or any obligated person, as such “obligated person” and “Bankruptcy Events” are defined in Rule 15c2-12; (13) the consummation of a merger, consolidation, or acquisition involving the City or an obligated person or the sale of all or substantially all of the assets of the City or an obligated person 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 Page 70 of 135 B-2 FG: 101434497.4 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; and (iii) Timely notice of a failure by the City to provide required annual financial information on or before the date specified in paragraph (b). (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, which statements may be unaudited, provided, that if and when audited financial statements are prepared and available they will be provided; (2) a statement of the outstanding balance of obligations secured by the Local Improvement Guaranty Fund; (3) the balance of cash and investments in the Local Improvement Guaranty Fund at fiscal year end; and (4) a statement of the amount of assessments that the City billed and collected in that fiscal year; (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, 2023; 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 Notes without the consent of any holder of any Note, 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 Page 71 of 135 B-3 FG: 101434497.4 information will include a narrative explanation of the effect of that change on the type of information to be provided. (d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the holder of each Note, 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 Notes. 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 Notes 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 Notes. The sole remedy of any holder of a Note 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 Note 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; (ii) Determining whether any event specified in paragraph (a) has occurred, assessing its materiality, where necessary, with respect to the Notes, and preparing and disseminating any required notice of its occurrence; (iii) Determining whether any person other than the City is an “obligated person” within the meaning of Rule 15c2-12 with respect to the Notes, 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; (iv) Selecting, engaging and compensating designated agents and consultants, including financial advisors and legal counsel, to assist and advise the City in carrying out this Undertaking; and (v) Effecting any necessary amendment of this Undertaking. Page 72 of 135 FG: 101434497.4 CERTIFICATION I, the undersigned, City Clerk of the City of Pasco, Washington (the “City”), hereby certify as follows: 1. The attached copy of Ordinance No. ____ (the “Ordinance”) is a full, true and correct copy of the Ordinance duly passed at a regular meeting of the City Council of the City (the “City Council”) held at the regular meeting place thereof on January 16, 2024 (the “Meeting”), as the 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 __________, 2024. 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: __________, 2024. CITY OF PASCO, WASHINGTON Debra Barham, City Clerk Page 73 of 135 Pasco City Council Meeting January 8, 2024 Pa g e 7 4 o f 1 3 5 What is a LID? A Local Improvement District (LID) serves as a mechanism to finance capital improvements that primarily benefit property owners of specific properties. ◦Allow for long term financing of improvements typically at low-interest rates ◦Repayment is spread over many years ◦Assessments to property owners reflect special benefit received ◦Includes all specially benefitted properties in the assessment As the improvements have a specific benefit to private owners, City funding of improvements is not correct. City funding of improvements that don’t provide widespread benefit conflict with the State of Washington prohibition on gifting of public funds. Pa g e 7 5 o f 1 3 5 LID Process Initiated by resolution (City initiated) or petition (property owner initiated) Potential LID is discussed as part of a public hearing. A LID is created by council adoption of ordinance. Two possible methodologies for assessment per State statute: ◦Mathematical – based on measurement unit ◦Special Benefit Analysis – assessment calculated by certified appraiser ◦A special benefit analysis will be undertaken for this LID upon completion ◦As part of the planning process a preliminary appraisal was undertaken by a third party Pa g e 7 6 o f 1 3 5 LID Steps ◦Pre-formation and evaluation of feasibility ◦Formation ◦Cost estimates and preliminary assessment roll creation ◦Formation hearing notices to property owners ◦Formation hearing ◦Protest and appeals periods ◦Design, construction and interim financing ◦LID close out process ◦Final assessment roll and hearing ◦Post assessment roll hearing actions or appeals ◦Ordinance for final assessment roll ◦Treasurer notice of final assessment (30-day interest free prepayment period) ◦Long-term financing secured ◦First annual assessment payment due approximately one year later Current stagePa g e 7 7 o f 1 3 5 East UGA Sewer LID ◦Project will construct sanitary sewer and lift station improvements within the East Urban Growth Area Expansion ◦Area of improvement includes 20 parcels comprising approximately 1,100 acres and ranging from seven acres to 232 acres in size ◦Includes parcels in various stages of development ◦Residential ◦Darigold ◦School District, High School ◦No property owners with LID 152 contested creation of the LID ◦Each property owner was in favor of LID creation ◦LID formation was approved by council May 2, 2022 ◦Current request supports issuance of interim financing Pa g e 7 8 o f 1 3 5 Project Map Pa g e 7 9 o f 1 3 5 Future Steps •Request council approval of note ordinance January 18 th •Rating agency review planned for January 18 th •Estimated bond sale date, February 7th •Estimated construction completion, September 2024 •Final assessment available for council presentation and public hearing, approximately November 2024 •Treasurer publication of final assessment, approximately December 2024 •Last step, sell of long-term bonds and retirement of interim financing Pa g e 8 0 o f 1 3 5 Closing •The local improvement district process is completed over an extended period •LID serves as a financing tool •Completion of the process includes various city departments and an external team composed of financial advisors, bond counsel and underwriter. •Questions? Pa g e 8 1 o f 1 3 5 AGENDA REPORT FOR: City Council January 3, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/8/24 FROM: Maria Serra, Interim Director Public Works SUBJECT: Resolution - Amendment No. 5 to RH2 Professional Services Agreement for the Phase 2 PWRF Project I. REFERENCE(S): Resolution PSA Amendment No. 5 Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Proposed Amendment No. 5 to Professional Services Agreement (PSA) with RH2 for PWRF Phase 2: $1,357,001.00 Summary: Original PSA $422,542.00 Amendment No. 1 $267,625.00 Amendment No. 2 $9,038.00 Amendment No. 3 $111,584.00 Amendment No. 4 $1,364,811.00 Amendment No. 5 (proposed) $1,357,001.00 New PSA Total $3,532,601.00 The total estimated cost for this project is $38.2 million. This project is funded 100% by a Department of Ecology Clean Water State Revolving Fund (CWSRF) low-interest loan. Loan payments will be paid from fees collected from each of the Processors. IV. HISTORY AND FACTS BRIEF: Page 82 of 135 On August 10, 2021, the City entered into a Professional Services Agreement (PSA) with RH2 Engineering, Inc., (RH2) for the design of approximately 200 million gallons (MG) of winter storage ponds at the Process Water Reuse Facility (PWRF) to accomodate the needs of the new Darigold milk processing plant. The ponds are needed to store processor wastewater during winter months when irrigation is not permitted. Subsequent to this PSA, several existing Processors also requested additional winter storage capacity to support the expansions of their operations and facilities. The total winter storage volume is now just over 300 MG. Amendment No. 1 (previously approved): Due to the increased quantity of winter storage needed to accommodate the existing Processors’ desired future growth, the for was required permitting support environmental additional acquisition of adjacent and other available US Bureau of Reclamation (USBR) properties (three 80-acre parcels) for constructing the new storage ponds and increasing the usable area of the land treatment system. The additional environmental and historical, biological required permitting archeological, assessments with written reports documenting the findings of the field explorations. Amendment No. 2 (previously approved): Based on requirements from USBR, RH2 was tasked with preparing an Environmental Site Assessment (ESA) for three USBR properties and for the westerly half of the City’s PWRF parcel. The ESA was not anticipated in the initial contract scope of work. This assessment focuses on identifying existing hazardous materials or likelihood to encounter hazardous materials at time of soil disturbance based on prior uses of the land. ESA was identified as a requirement for USBR to sell (dispose) of their land. Amendment No. 3 (previously approved): RH2 was asked to develop additional environmental permitting scope to comply with Federal requirements associated with the funding, supplementing the previously completed USBR expedited NEPA process. Additionally, a separate 160-acre USBR parcel became available for purchase south of Foster Wells Road and was identified as a potential viable location for disposal of excavation material needed for the construction of winter storage ponds. Acquisition of the additional parcel required further cultural and environmental NEPA field work and reporting to facilitate this second acquisition process with USBR. Amendment No. 4 (previously approved): Additional engineering services were needed for coordinating work between the multiple ongoing phases of the PWRF improvements (including the Phase 3 work performed by Burnham SEV Pasco, LLC), redesign of pond grading and excavation to account for Ecology’s Dam Safety requirements specific to pond embankment construction, and to remain in compliance with federal funding requirements for the anticipated Construction services funding award through Ecology. Limited during Page 83 of 135 construction were included. Amendment No. 5 (Proposed): This amendment is presented to provide additional engineering services during construction. The additive construction support services include overall construction contract administration and management, onsite construction observation and documentation, and project management funding federal the with compliance in remain to duties requirements and environmental regulations of the Clean Water State Revolving Fund (CWSRF) awarded through the Water Quality Program of Ecology. V. DISCUSSION: Now that this project is under construction the City has requested RH2 provide construction administration services for this project. The proposed Amendment 5 accounts for expanded project administration tasks, various agency/contractor coordination, as well as onsite observation and inspection to meet project funding and regulatory requirements. Ecology, who manages the CWSRF loan program, has been identified this project as a Designated Equivalency Project (DEP). This means the project is completely funded with federal funds that pass through a state program. With the DEP designation, additional environmental compliance elements were required. To allow this project to move forward the City needed to purchase properties adjacent to the PWRF from the US Bureau of Reclamation (USBR). This federal property acquisition specifically requires monitoring of burrowing owl activity on these parcels and coordination with the Washington Department of Fish and Wildlife when or if relocation of owl burrows becomes necessary. Federal funding on this project also triggers the thorough review, reporting, and record-keeping payroll certified and prevailing contractor of wage documentation, both of which involve additional coordination between the city and construction contractor employees. Comprehensive review of pay requests from the contractor also entails extensive knowledge of actual construction progress, thereby requiring regular frequency of onsite inspection and observation. In April 2023, the Department of Ecology Water Quality Program released a new lagoon and liner design guidelines (Publication 98-37) which implements requirements for construction of lined lagoons as authorized through Chapter 173-240 WAC. For the new installation of a pond liner, the Ecology regulations require a modern electrical leak detection technology to ensure liner integrity when placing the new ponds into service. As this type of field testing was not Page 84 of 135 anticipated at the time the construction contract was awarded, this amendment includes provisions for the consultant to subcontract with a third party to perform these services. The total estimated construction cost of this project is $35.4 million. Upon approval of Amendment No. 5, the total PSA amount represents approximately 10% of the estimated construction cost. This is below the typical 15-20% design fees. Staff recommends approval of Amendment No. 5 to the PSA with RH2 Engineering for the PWRF Pretreatment Improvements Phase 2 Winter Storage Pond project in the amount of $1,357,001.00. Page 85 of 135 Resolution - PWRF Phase 2 Amend No. 5 w/ RH2 Agreement - 1 Version 10.25.23 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 5 FOR THE PROFESSIONAL SERVICES AGREEMENT WITH RH2 ENGINEERING, INC. FOR THE PROCESS WATER REUSE FACILITY (PWRF) PRETREATMENT IMPROVEMENTS PHASE 2: WINTER STORAGE CAPACITY. WHEREAS, the City of Pasco (City) RH2 Engineering, Inc. entered into a Professional Services Agreement on August 10, 2021, to provide Engineering services with respect to the Process Water Reuse Facility (PWRF) Improvements project; and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 1 on May 9, 2022, to add additional professional engineering (design) services for additional winter storage ; and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 2 on July 12, 2022, to add additional professional engineering services required for the acquisition of additional land from the United States Bureau of Reclamation (USBR); and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 3 on August 26, 2022, to add additional professional engineering services for cultural and environmental field work and associated reporting for an additional 160-acre parcel owned by the USBR, and additional permitting support to facilitate the acquisition process being administered by the USBR to meet funding requirements; and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 4 on January 6, 2023, to add additional professional engineering services for supporting the future operations of the facility by interconnecting ponds, coordinating work between the multiple ongoing phases of the project at the PWRF site, funding assistance, and limited construction support; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into Amendment No. 5 to allow RH2 Engineering, Inc. to provide additional professional engineering services during construction including construction contract administration, and project management duties in compliance with the Federal regulations of the Clean Water State Revolving Fund (CWSRF) loan. Page 86 of 135 Resolution - PWRF Phase 2 Amend No. 5 w/ RH2 Agreement - 2 Version 10.25.23 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of Amendment No. 5 between the City of Pasco and RH2 Engineering, Inc. as attached hereto and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Amendment No. 5 on behalf of the City of Pasco; and to make minor substantive changes as necessary to execute the Agreement. Be It Further Resolved, that this Resolution will take effect immediately. PASSED by the City Council of the City of Pasco, Washington , on this ___ day of _________________, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 87 of 135 Amendment No. 5 to RH2 Engineering, Inc. PSA Process Water Reuse Facility Pretreatment Improvements – Phase 2: Winter Storage Page 1 AMENDMENT NUMBER 5 to PROFESSIONAL SERVICES AGREEMENT Process Water Reuse Facility Pretreatment Improvements – Phase 2: Winter Storage PROJECT No. 21298 AGREEMENT NO. 21-039 WHEREAS, the City and RH2 Engineering, Inc., entered into a Professional Services Agreement on August 10, 2021, to provide engineering services with respect to the Process Water Reuse Facility (PWRF) Improvements project; and WHEREAS, as the Phase 2 project progressed, RH2 Engineering and City Staff have identified additional need for winter storage capacity; and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 1 on May 9, 2022, to add additional professional engineering (design) services for additional winter storage ; and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 2 on July 12, 2022, to add additional professional engineering services required for the acquisition of additional land from the United States Bureau of Reclamation (USBR); and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 3 on August 26, 2022, to add additional professional engineering services for cultural and environmental field work and associated reporting for an additional 160-acre parcel owned by the USBR, and additional permitting support to facilitate the acquisition process being administered by the USBR to meet funding requirements; and WHEREAS, the City and RH2 Engineering, Inc. entered into Amendment No. 4 on January 6, 2023, to add additional professional engineering services for supporting the future operations of the facility by interconnecting ponds, coordinating work between the multiple ongoing phases of the project at the PWRF site, funding assistance, and limited construction support; and WHEREAS, the City Council of the City of Pasco, Washington, has after due consideration, determined that it is in the best interest of the City of Pasco to enter into Amendment No. 5 to allow RH2 Engineering, Inc. to provide additional professional engineering services during construction including construction contract administration, and project management duties in compliance with the Federal regulations of the Clean Water State Revolving Fund (CWSRF) loan. NOW, THEREFORE, this Agreement is amended to allow RH2 Engineering, Inc., to provide additional professional engineering services during construction as described on Exhibit A. Page 88 of 135 Amendment No. 5 to RH2 Engineering, Inc. PSA Process Water Reuse Facility Pretreatment Improvements – Phase 2: Winter Storage Page 2 1. Scope of Work: See Exhibit A 2. Fee: The compensation for the work is based on a Time and Materials Basis not to exceed the amount of $1,357,001.00 for a total authorization amount of $3,532,601.00. See Exhibit B. 3. Time of performance: The services shall be complete for the project on or before December 31, 2024. DATED THIS _____ DAY OF _____________________________, 2024. CITY OF PASCO, WASHINGTON CONSULTANT Adam R. Lincoln, City Manager, RH2 Engineering, Inc. Paul Cross, PE - Principal Page 89 of 135 1 12/13/2023 11:36:41 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\PSC\21-0236\00 CONTRACT\A-5\AMEND NO. 5_SOW_PWRF PH 2 SDC-REGULAR.DOCX EXHIBIT A Scope of Work Amendment No. 5 City of Pasco Process Water Reuse Facility Improvements – Winter Storage Regular Services During Construction December 2023 Background The City of Pasco (City) has requested that RH2 Engineering, Inc., (RH2) provide regular construction observation and contract administration services for the Process Water Reuse Facility (PWRF) Improvements – Phase 2: Winter Storage Project. This Amendment is additive to Contract Amendment No. 4 for limited services during construction (SDC). It is anticipated the project will start in December 2023 and be finalized in May 2025 based on allotted working days for the contractor. Task 8 – Services During Construction (Regular) Objective: Provide engineering services, construction contract administration, and project management during the construction phase of the project. This Task is additive to Contract Amendment No. 4, Task 8. Approach: Provide project administration services during construction, including staff scheduling, recordkeeping and filing, and project invoicing. Provide monthly billing invoices, including a detailed breakdown of RH2 staff hours. Include a summary of expenditures, percentage complete, and budget remaining. Coordinate with the City’s project manager on a regular basis to discuss project and task status. Manage RH2 ShareFile site for uploading and managing project documents. Review and track contractor Statements of Intent to Pay Prevailing Wages and Certified Payrolls. Perform wage rate interviews with contractor’s employees. Prepare and distribute meeting agendas/minutes for weekly on-site construction meetings Monitor burrowing owl activity on the U.S. Department of Reclamation’ (Reclamation) and SE Reclamation parcels and coordinate with the Washington Department of Fish and Wildlife on burrow abandonment or owl relocation. It is anticipated that trail cameras will be used to monitor owl burrows during December. Attend weekly on-site construction meetings. Provide daily correspondence and coordination with City, contractor, and agencies. Provide additional part-time construction observation services. The intent of the on-site observation is to observe the quality and compliance of the work with the construction Page 90 of 135 City of Pasco Exhibit A PWRF Improvements – Winter Storage Scope of Work Regular SDC Amendment No. 5 2 12/13/2023 11:36:41 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\PSC\21-0236\00 CONTRACT\A-5\AMEND NO. 5_SOW_PWRF PH 2 SDC-REGULAR.DOCX contract plans and specifications. The Fee Estimate is additive to Contract Amendment No. 4, subtask 8.6 and reflects approximately twenty-four (24) hours per week of on-site observations by an RH2 representative for the duration of the construction period (assumed to be eighty-eight (88) weeks). Notify the contractor and the City of work that has been observed to have not been completed in accordance with the plans and specifications and discuss rectification. Review pay requests from the contractor and forward approved pay requests to the City for processing. Prepare progress reports, including construction contract time remaining statements and weekly statements of working days. Subcontract with a testing agency to provide electronic leak detection services for the 103 million gallon (MG), 106 MG, and 120 MG lagoons using the water puddle testing method. Attend final contractor inspection with City staff and prepare a punchlist. Prepare a letter recommending project acceptance and project closeout documents following completion of construction. Assumptions: • Contract Amendment No. 4, subtask 8.8 originally assumed sixteen (16) hours of part-time construction observation services for fifty-two (52) weeks. Additional hours and duration have been included in subtask 8.17 to account for RH2 providing regular SDC services and the contract being longer than originally anticipated. • Trail cameras and burrowing owl traps will be used for subtask 8.15. Rental costs for the trail cameras and material costs for burrowing owl traps will be billed to the project. • A UTV will be used for subtask 8.18 to access the site. RH2 will provide an accompanying invoice for the UTV rental with RH2’s monthly billing. • Subtask 8.19 will require RH2 to issue a change proposal for the PWRF Phase 2 contractor (Tapani, Inc.) to provide a water truck, up to 500 feet of hose, 5,000 gallons per day of City or well water, and one (1) to two (2) laborers to assist with handling and operation of the hoses and water truck for the testing agency performing the electronic leak detection service. The leak detection survey may take up to twenty (20) working days. Provided by City: • Attendance at weekly construction meetings. RH2 Deliverables: • Attendance at weekly construction meetings, agenda, and meeting minutes in electronic PDF. • Written responses to pay requests in electronic PDF. • Part-time construction observation. Page 91 of 135 City of Pasco Exhibit A PWRF Improvements – Winter Storage Scope of Work Regular SDC Amendment No. 5 3 12/13/2023 11:36:41 AM \\CORP.RH2.COM\DFS\PROJECTS\DATA\PSC\21-0236\00 CONTRACT\A-5\AMEND NO. 5_SOW_PWRF PH 2 SDC-REGULAR.DOCX • Progress reports, observation reports, construction contract time remaining statements, and weekly statements of working days in electronic PDF. • Electronic leak detection survey report. Page 92 of 135 EXHIBIT B Fee Estimate Amendment No. 5 City of Pasco PWRF Improvements Phase 2 - Winter Storage Services During Construction Dec-23 Description Total Hours Total Labor Total Subconsultant Total Expense Total Cost Task 8 Services During Construction (Regular)5356 1,084,953$ 218,500$ 53,548$ 1,357,001$ PROJECT TOTAL 5356 1,084,953$ 218,500$ 53,548$ 1,357,001$ \\corp.rh2.com\dfs\Projects\Data\PSC\21-0236\00 Contract\A-5\Amend No. 5_FEE_PWRF PH 2 SDC-Regular 12/19/2023 9:22 AMPage 93 of 135 RATE LIST RATE UNIT Professional I $169 $/hr Professional II $184 $/hr Professional III $207 $/hr Professional IV $226 $/hr Professional V $240 $/hr Professional VI $259 $/hr Professional VII $280 $/hr Professional VIII $293 $/hr Professional IX $311 $/hr Technician I $130 $/hr Technician II $144 $/hr Technician III $162 $/hr Technician IV $177 $/hr Technician V $192 $/hr Technician VI $211 $/hr Technician VII $229 $/hr Technician VIII $239 $/hr Control Specialist I $170 $/hr Control Specialist II $185 $/hr Control Specialist III $208 $/hr Control Specialist IV $227 $/hr Control Specialist V $240 $/hr Control Specialist VI $259 $/hr Control Specialist VII $276 $/hr Control Specialist VIII $289 $/hr Control Specialist IX $289 $/hr Control Technician I $130 $/hr Control Technician II $144 $/hr Control Technician III $165 $/hr Control Technician IV $177 $/hr Control Technician V $192 $/hr Control Technician VI $211 $/hr Control Technician VII $229 $/hr Control Technician VIII $239 $/hr Administrative I $87 $/hr Administrative II $102 $/hr Administrative III $120 $/hr Administrative IV $144 $/hr Administrative V $168 $/hr CAD/GIS System $27.50 $/hr CAD Plots - Half Size $2.50 price per plot CAD Plots - Full Size $10.00 price per plot CAD Plots - Large $25.00 price per plot Copies (bw) 8.5" X 11"$0.09 price per copy Copies (bw) 8.5" X 14"$0.14 price per copy Copies (bw) 11" X 17"$0.20 price per copy Copies (color) 8.5" X 11"$0.90 price per copy Copies (color) 8.5" X 14"$1.20 price per copy Copies (color) 11" X 17"$2.00 price per copy Technology Charge 2.50%% of Direct Labor Night Work 10.00%% of Direct Labor Mileage $0.6550 price per mile (or Current IRS Rate) Subconsultants 15%Cost + Outside Services at cost EXHIBIT C RH2 ENGINEERING, INC. 2024 SCHEDULE OF RATES AND CHARGES Rates listed are adjusted annually. Page 94 of 135 EQUIPMENT RATE UNIT Pressure Data Logger 30$ $/Day 120$ $/Week 360$ $/Month Set of 2 Hose Monster Assemblies 50$ $/Day 200$ $/Week 600$ $/Month Set of 6 Pressure Data Loggers 180$ $/Day 720$ $/Week 2,160$ $/Month Set of 2 Hose Monster Assemblies w/ 6 Pressure Data Loggers 230$ $/Day 920$ $/Week 2,760$ $/Month Set of 2 Hose Monster Assemblies w/ 9 Pressure Data Loggers 320$ $/Day 1,280$ $/Week 3,840$ $/Month EQUIPMENT RATE UNIT Coco-80 w/ 4 Accelerometers 80$ $/Pump 320$ $/Day 960$ $/Week ITIG-II Model C w/ test probes 90$ $/Pump 360$ $/Day 1,080$ $/Week ITIG-II and Power Pack w/ test probes 190$ $/Pump 760$ $/Day 2,280$ $/Week PowerSight 3500 w/ test probes 15$ $/Pump 60$ $/Day 180$ $/Week FLIR E8 WIFI Thermal Camera 15$ $/Pump 60$ $/Day 180$ $/Week EQUIPMENT RATE UNIT Articulating Boroscope 200$ $/Day Thru-Coat Thickness Gauge 200$ $/Day Dry Film Thickness Gauge 50$ $/Day Wenner 4-Pin Method 200$ $/Day AWWA Soil Testing 150$ $/Sample 135$ $/Day Rectifier 540$ $/Week 1,620$ $/Month EQUIPMENT RATE UNIT Drone with Operator at Professional Rate not Inlcuded 50$ $/Hr 100$ $/Day 400$ $/Week Trail Camera 55$ $/Month SPECIAL EQUIPMENT - DRONES AND CAMERAS CORROSION EQUIPMENT RH2 EQUIPMENT RENTAL RATES SYSTEM FLOW AND PRESSURE TESTING EQUIPMENT SPECIAL EQUIPMENT - PUMP AND MOTOR TESTING Page 95 of 135 Process Water Reuse Facility Phase 2 Project Amendment 1-5 Summary List: • Amendment No. 1 (previously approved): Due to the increased quantity of winter storage needed to accommodate the existing Processors’ desired future growth, additional environmental permitting support was required for the acquisition of adjacent and other available US Bureau of Reclamation (USBR) properties (three 80-acre parcels) for constructing the new storage ponds and increasing the usable area of the land treatment system. The additional environmental permitting required archeological, historical, and biological assessments with written reports documenting the findings of the field explorations $267,625.00. • Amendment No. 2 (previously approved): Based on requirements from USBR, RH2 was tasked with preparing an Environmental Site Assessment (ESA) for three USBR properties and for the westerly half of the City’s PWRF parcel. The ESA was not anticipated in the initial contract scope of work. This assessment focuses on identifying existing hazardous materials or the likelihood to encounter hazardous materials at the time of soil disturbance based on prior uses of the land. ESA was identified as a requirement for USBR to sell (dispose) of their land $9,038.00. • Amendment No. 3 (previously approved): RH2 was asked to develop additional environmental permitting scope to comply with Federal requirements associated with the funding, supplementing the previously completed USBR expedited NEPA process. Additionally, a separate 160-acre USBR parcel became available for purchase south of Foster Wells Road and was identified as a potential viable location for the disposal of excavation material needed for the construction of winter storage ponds. Acquisition of the additional parcel required further cultural and environmental NEPA fieldwork and reporting to facilitate this second acquisition process with USBR $111,584.00. • Amendment No. 4 (previously approved): Additional engineering services were needed for coordinating work between the multiple ongoing phases of the PWRF improvements (including the Phase 3 work performed by Burnham SEV Pasco, LLC), redesign of pond grading and excavation to account for Ecology’s Dam Safety requirements specific to pond embankment construction, and to remain in compliance with federal funding requirements for the anticipated Construction funding award through Ecology. Limited services during construction were included $1,364,811.00. • Amendment No. 5 (Proposed): This amendment is presented to provide additional engineering services during construction. The additive construction support services include overall construction contract administration and management, onsite construction observation and documentation, and project management duties to remain in compliance with the federal funding requirements and environmental regulations of the Clean Water State Revolving Fund (CWSRF) awarded through the Water Quality Program of Ecology $1,357,001.00. Page 96 of 135 Pasco City Council Workshop Meeting January 8, 2024 Pa g e 9 7 o f 1 3 5 PWRF Phase 2-PSA Amendment No. 5 for RH2 Engineering, Inc., Project # 21-298 Site Work in Progress for Future Winter Storage Lagoons Existing Winter Storage Lagoons (123 MG) Existing Storage Ponds Pa g e 9 8 o f 1 3 5 PWRF Phase 2-PSA Amendment No. 5 for RH2 Engineering, Inc., Project # 21-298 EMBEDDED DRONE FOOTAGE Pa g e 9 9 o f 1 3 5 PWRF Phase 2-PSA Amendment No. 5 for RH2 Engineering, Inc., Project # 21-298 PWRF Phase 2 Improvements Amendment No. 5 (proposed) $1,357,001.00 New PSA Total $3,532,601.00 Total estimated project Cost for Phase 2 ‐ Construction $35.4 million Summary of Amendment No. 5 Scope •Full Construction administration duties:  •Inspection •Project documentation and reporting •Regulatory and environmental compliance with federal funding  •Pond liner integrity testing required by Ecology guidelines. Pa g e 1 0 0 o f 1 3 5 Questions? Pa g e 1 0 1 o f 1 3 5 AGENDA REPORT FOR: City Council December 11, 2023 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 1/8/24 FROM: Steve Worley, Director Public Works SUBJECT: Resolution - Change Order No. 7 to Citywide Traffic Signal Improvements Ph 2 Project I. REFERENCE(S): Resolution Change Order No. 7 Change Order Summary List II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Contract Awarded to Apollo, Inc. for construction by Council on September 12, 2022, for $4,313,512.00 The Total Estimated Project Cost, including the design and right-of-way phases, is $5,752,507. The change orders are within the budgeted amount within the project contingency. Funding for the project includes the following Funding Sources City of Pasco Arterial Fund $51,428.00 City of Pasco I-182 Fund $637,932.00 TAP Funds $146,891.00 STBG Funds $2,410,269.00 HIP Funds $405,987.00 REET Fund (per budget amendment 9/12/2022) $2,100,000.00 Total $5,752,507.00 Change Orders to Date: Page 102 of 135 Awarded Contract 9/12/2022 $4,313,512.00 Change Order 1 $(165,600.00) Change Order 2 $178,436.19 Change Order 3 $23,000.00 Change Order 4 $101,941.94 Change Order 5 $69,865.92 Change Order 6 $91,266.28 Proposed Change Order 7 $20,302.61 New Contract Total $4,632,724.94 A summary of each Change Order is attached. IV. HISTORY AND FACTS BRIEF: The Citywide Traffic Signal Improvements Project was initially scoped to provide upgrades to all 32 signal systems at intersections throughout the city. Due to grant funding availability the project has been divided into three phases. Phase 1 is complete and included 11 intersections. Phase 2 is currently under construction and includes 15 intersections. And the Phase 3 project, which still requires funding, will include the final 6 intersections. Signal Traffic Citywide the awarded 2022, 12, September On Council Improvements Phase 2 contract to Apollo, Inc. for a total contract amount of $4,313,512.00. The change order makes up for 7.4% of the initial awarded contract. A summary of these Change Orders is attached for review. V. DISCUSSION: The intersection of Sylvester Street and 10th Avenue required additional work by the contractor to correct a drainage issue. The existing intersection slopes were very flat around the northeast corner radius and extending north up 10th Avenue. The new curbs and pedestrian ramps were constructed to ensure that runoff flowed around the radius of the curb in compliance with American with Disabilities Act (ADA) requirements. This change order is to address other ponding issues at the intersection. To eliminate existing ponding the existing pavement on the northern leg of the intersection was removed to allow for new pavement to be placed with a crown that would ensure runoff flows to the curbs. Staff recommends approval of Change Order No. 7 in the amount of $20,302.61. Page 103 of 135 Resolution – CO No. 7 Citywide Traffic Signal Impr. Ph 2 - 1 RESOLUTION NO. _________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON AUTHORIZING THE CITY MANAGER TO EXECUTE CHANGE ORDER NO. 7 TO THE CONSTRUCTION CONTRACT WITH APOLLO, INC. FOR THE CITYWIDE TRAFFIC SIGNAL IMPROVEMENTS PHASE 2 PROJECT. WHEREAS, the City of Pasco (City) and Apollo, Inc. entered into a Construction Contract on October 31, 2022, for construction of the Citywide Traffic Signal Improvements Phase 2 Project; and WHEREAS, Phase 2 involves (twelve) 12 signalized intersections and three (3) alternate signalized intersections ; and WHEREAS, previously approved Change Orders Nos. 1-6 were authorized under the authority provided to the City Manager and the Public Works Director; and WHEREAS, proposed Change Order No. 7 involves work required in the intersection of 10th Avenue & Sylvester Street to correct drainage issues; and WHEREAS, the $20,302.61 amount of Change Order No. 7 added to the cumulative sum of previous approved Change Orders, exceeds the City Manager’s authority, and thus requires Council approval. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council of the City of Pasco approves the terms and conditions of Change Order No. 7 between the City of Pasco and Apollo, Inc. as attached here to and incorporated herein as Exhibit A. Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to execute said Change Order No. 7 on behalf of the City of Pasco. Be It Further Resolved, that this Resolution will take effect immediately. Page 104 of 135 Resolution – CO No. 7 Citywide Traffic Signal Impr. Ph 2 - 2 PASSED by the City Council of the City of Pasco, Washington , on this ___ day of __________, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Page 105 of 135 EXHIBIT A Page 106 of 135 Page 107 of 135 Page 108 of 135 Pa g e 1 0 9 o f 1 3 5 Pa g e 1 1 0 o f 1 3 5 Page 111 of 135 Page 112 of 135 Pa g e 1 1 3 o f 1 3 5 Page 114 of 135 Page 115 of 135 Page 116 of 135 Page 117 of 135 Page 118 of 135 Page 119 of 135 Pa g e 1 2 0 o f 1 3 5 Page 121 of 135 Pa g e 1 2 2 o f 1 3 5 Page 123 of 135 Page 124 of 135 Page 125 of 135 Page 126 of 135 Page 127 of 135 Page 128 of 135 Page 129 of 135 Page 130 of 135 Page 131 of 135 Page 132 of 135 Citywide Traffic Signal Improvements Phase 2 Change Order Summary List: 1. Change Order 1: For the removal of bid item 21 – signal modifications. Sandifur Pkwy & Broadmoor Blvd. $(165,600.00) 2. Change Order 2: While the Citywide Traffic Signal Improvements Phase 2 project was bidding, the Sylvester Street Safety Improvements project was under design. The design of the Sylvester Street Improvements project changed the lane configuration on Sylvester Street and added pedestrian bulb outs at several of the intersections along the Sylvester Street corridor. These design changes were not reflected in the Citywide Traffic Signal Improvements Phase 2 design plans. This change order is to incorporate the necessary changes to the intersections of Sylvester Street and 5th Avenue, Sylvester Street and 10th Avenue, and Sylvester Street and 28th Avenue to tie into the revised lane configurations planned for the Sylvester Street Corridor. $178,436.19 3. Change Order 3: is to add bid items to the project for the removal of cement concrete curb and gutter and removal of cement concrete sidewalk. $23,000.00 4. Change Order 4: is to replace the existing traffic signal pole on the northeast corner of the Road 40 and Court Street intersection with a new traffic signal on the northwest corner of the intersection. $101,941.94 5. Change Order 5: is for the force account work that was necessary due to design changes made during construction to ensure that the new pedestrian improvements were constructed per current ADA requirements. $69,865.92 6. Change Order 6: is for directional boring at the locations of W Sylvester and 4th Street, W Court Street and Road 36, and W Ainsworth and 10th Ave to install new power connections for the traffic signals. $91,266.28 7. Change Order 7: is for the work required in the intersection of 10th Ave and Sylvester Street to correct drainage issues. $20,302.61 Page 133 of 135 QUALITY OF LIFE Promote a high-quality of life through quality programs, services and appropriate investment and re- investment in community infrastructure including, but not limited to: • Completion of Transportation System Master Plan and design standard updates to promote greater neighborhood cohesion in new and re-developed neighborhoods through design elements, e.g.; connectivity, walkability, aesthetics, sustainability, and community gathering spaces. • Completion of the Parks, Recreation and Open Space Plan and development of an implementation strategy to enhance such services equitably across the community. • Completion of the Housing Action and Implementation Plan with a focus on a variety of housing to address the needs of the growing population. FINANCIAL SUSTAINABILITY Enhance the long-term viability, value, and service levels of services and programs, including, but not limited to: • Adopting policies and strategic investment standards to assure consistency of long-range planning to include update of impact fees, area fees to specific infrastructure, and SEPA mitigation measures related to new development, e.g.; schools, traffic, parks, and fire. COMMUNITY TRANSPORTATION NETWORK Promote a highly functional multi-modal transportation system including, but not limited to: • Application of the adopted Transportation System Master Plan including development of policies, regulations, programs, and projects that provide for greater connectivity, strategic investment, mobility, multi -modal systems, accessibility, efficiency, and safety. COMMUNITY SAFETY Promote proactive approaches for the strategic investment of infrastructure, staffing, and equipment including, but not limited to: • Adoption and develop implementation strategies for Comprehensive Fire Master Plan aimed at maintaining the current Washington State Rating Bureau Class 3 community rating. • Collaboration with regional partners to influence strategies to reduce incidences of homeless by leveraging existing resources such as the newly implemented 0.1% mental health sales tax, use of resource navigator programs, and other efforts. • Development of an implementation strategy for the Comprehensive Police Master Plan to support future service levels of the department to assure sustainability, public safety, officer safety, crime control, and compliance with legislative mandates. ECONOMIC VITALITY Promote and encourage economic vitality including, but not limited to: • Implementation of the Comprehensive Land Use Plan through related actions including zoning code changes, phased sign code update, and development regulations and standards. • Completion of Area Master Plans and environmental analysis complementing the Comprehensive Land Use Plan such as Downtown and Broadmoor Master Plans. • Development of an Economic Development Plan, including revitalization efforts. COMMUNITY IDENTITY Identify opportunities to enhance community identity, cohesion, and image including, but not limited to: • Development of a Community Engagement Plan to evaluate strategies, technologies, and other opportunities to further inclusivity, community engagement, and inter-agency and constituent coordination efforts. • Support of the Arts and Culture Commission in promoting unity and the celebration of diversity through art and culture programs, recognition of significant events or occurrences, and participation/sponsorship of events within the community. Page 134 of 135 CALIDAD DE VIDA Promover una calidad de vida alta a través de programas de calidad, servicios, inversiones y reinversiones apropiadas en la infraestructura de la comunidad incluyendo, pero no limitado a: • Terminar el Plan de Transportación para promover más cohesión entre nuestras vecindades actuales y re-desarrolladas a través de elementos de diseño, p.ej. conectividad, transitabilidad, sostenibilidad estética, y espacios para reuniones comunitarias. • Terminar el Plan de los Parques, la Recreación, y los Espacios Vacíos y el desarrollo de una estrategia de implementación para mejorar tales servicios justamente a lo largo de la comunidad. • Terminar el Plan de Acción e Implementación de Viviendas con un enfoque en una variedad de viviendas para tratar las necesidades del aumento en la población. SOSTENIBIILIDAD FINANCIERA Mejorar la viabilidad a largo plazo, el valor, y los niveles de los servicios y los programas, incluyendo, pero no limitado a: • Adoptar las políticas y los estándares de inversión estratégica para asegurar consistencia en la planificación a largo plazo para incluir la actualización de las tarifas de impacto, las tarifas en áreas de infraestructura específica, y las medidas de mitigación SEPA relacionadas con el nuevo desarrollo, p.ej. escuelas, tráfico, parques, e incendios. RED DE TRANSPORTACION COMUNITARIA Promover un sistema de transportación multimodal en alta operación incluyendo, pero no limitado a: • Aplicar el Plan de Transportación que fue adoptado, incluyendo el desarrollo de las políticas, las reglas, los programas, y los proyectos que proporcionan más conectividad, inversión estratégica, movilidad, sistemas multimodales, accesibilidad, eficiencia, y seguridad. SEGURIDAD COMUNITARIA Promover métodos proactivos para la inversión estratégica en la infraestructura, el personal, y el equipo incluyendo, pero no limitado a: • Adoptar y desarrollar estrategias de implementación para el Plan Comprehensivo para Incendios. Con el propósito de mantener la clasificación comunitaria actual en la tercera Clase del Departamento de Clasificación del Estado de Washington. • Colaborar con socios regionales para influenciar estrategias que reduzcan los incidentes de personas sin hogar al hacer uso de los recursos actuales como el impuesto de ventas de 0.1% implementado recientemente para la salud mental, el uso de programas para navegar los recursos, y otros esfuerzos. • Desarrollar una estrategia de implementación para el Plan Comprehensivo de la Policía para apoyar los niveles futuros de servicio del departamento para asegurar la sostenibilidad, la seguridad pública, la seguridad de los policías, el control de crímenes, y el cumplimiento con los mandatos legislativos. VITALIDAD ECONOMICA Promover y fomentar vitalidad económica incluyendo, pero no limitado a: • Implementar el Plan Comprehensivo del Uso de Terreno a través de acciones relacionadas, incluyendo cambios de los códigos de zonificación, actualización en las etapas de los códigos de las señales, y el desarrollo de las reglas y los estándares. • Terminar los Planes de las Áreas y un análisis ambiental el cual complementa al plan integral de uso de la tierra como a los Planes del Centro y de Broadmoor. • Desarrollar un Plan de Desarrollo Económico, el cual incluya esfuerzos de revitalización. IDENTIDAD COMUNITARIA Identificar oportunidades para mejorar la identidad comunitaria, la cohesión, y la imagen incluyendo, pero no limitado a: • Desarrollar un Plan de Participación de la Comunidad para evaluar las estrategias, las tecnologías, y otras oportunidades para promover la inclusividad, la participación de la comunidad, y los esfuerzos interdepartamentales y de coordinación de los constituyentes. • Apoyar a la Comisión de las Artes y Cultura al promover la unidad y la celebración de la diversidad a través de programas de arte y cultura, reconocer eventos o acontecimientos significantes, y participar/patrocinar eventos dentro de la comunidad. Page 135 of 135