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HomeMy WebLinkAbout2024.02.12 Council Workshop Packet AGENDA City Council Workshop Meeting 7:00 PM - Monday, February 12, 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 - 30 (a) Downtown Pasco Development Authority Update 31 - 49 (b) Resolution - Interlocal Agreement - Cable Bridge LED Lighting System 50 - 64 (c) Resolution - Project Acceptance for West Pasco Water Treatment Plant, Phase 1 Project 6. MISCELLANEOUS COUNCIL DISCUSSION 7. EXECUTIVE SESSION (a) Consideration of the Minimum Offering Price for Sale or Lease of Real Estate if there’s a Likelihood that Disclosure Would Page 1 of 66 Decrease the Price per RCW 42.30.110(1)(c) (20 minutes) 8. ADJOURNMENT 9. ADDITIONAL NOTES 65 - 66 (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 66 AGENDA REPORT FOR: City Council February 7, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 2/12/24 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Downtown Pasco Development Authority Update I. REFERENCE(S): Presentation Ordinance 3985 - Creation of DPDA Draft Ordinance - Dissolution of DPDA II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: In December 2010, the City Council established a Public Development area. Downtown the of revitalization spearhead to (PDA) Authority the Additionally, the PDA was tasked with managing the Pasco Specialty Kitchen and Farmer’s Market and promoting the utilization of the façade improvement program funded through the Community Development Block Grant allocation. In May of 2011, the board formed a non-profit and obtained its non-profit corporation license in Washington State, followed by the appointment of a full Board in July of the same year. In 2012, they achieved its 501(c)(3) tax-exempt status. In January of 2015, it was officially designated as a Washington State Main Street member, entitling the nonprofit to certain benefits, such as the ability to receive donations with donors receiving a 75% credit against applicable B&O taxes. In recent years City has contributed $100,000 per year on average, much of this Utility State the by amount was 75%) (approximately offset Tax Page 3 of 66 reimbursement program. V. DISCUSSION: The Downtown Pasco Development Authority (DPDA) recently received an audit report highlighting issues regarding the management of funds and compliance with grant requirements and state laws. The audit revealed a significant number of invoices lacking sufficient documentation, raising doubts about the validity of expenses attributed to business purposes. Additionally, the agency failed to adhere to grant requirements and validate grant eligibility for recipients. Furthermore, shortcomings were identified in the implementation of proper Public Open the with cash and processes receipting compliance Meeting Act (OPMA) as mandated by state laws for all public agencies. Biennial audits conducted by the Office of Washington State Auditor (SAO) have in documentation deficiencies and highlighted consistently DPDA's financial management. The audits for the years 2020, 2021, and 2022 revealed recurring issues, exacerbating concerns about the agency's operational effectiveness and overall trust. Moreover, the failure to meet OPMA and grant requirements represents new challenges for the organization. As a public development authority with a Board, the City's role in overseeing the agency's day-to-day operations is limited. The City Council appoints the Board Members for DPDA who in turn are responsible for employing an Executive Director to run the operations. The City is responsible for ensuring that the goals set forth by the City for the funds being disbursed to DPDA were met per the terms of the funding agreement. City has extended offers to provide training and assistance in establishing financial controls and structures. Unfortunately, and position Director Executive the turnover significant in organizational culture issues appear to have hindered the establishment of a disciplined and efficient organization. Following the resignation of the last Executive Director, the City reassumed responsibility for critical services previously managed by DPDA, such as the Pasco Farmer's Market, Pasco Specialty Kitchen, and various festivals, ensuring continued service to the community. The City will continue to work with the State Auditor's Office and any other relevant authority to fully account for the DPDA finances. Considering the significant investment made by the City to revitalize the downtown core, it is imperative to uphold public trust in local agencies. Regrettably, DPDA has failed to maintain this trust both with the public and with the City. Taking into account these circumstances, staff recommends that the Council consider the dissolution of DPDA. Page 4 of 66 Pasco City Council Meeting February 12, 2024 Pa g e 5 o f 6 6 DPDA Purpose •Ordinance 3985 passed in 2010 to: •Review City plans and policies affecting Downtown area. •Financing strategies for public/private collaborations. •Marking the downtown area. •Façade Improvement Program. •Business assistance. •Promotional Events. Pa g e 6 o f 6 6 Agreement with City •Entity responsible for its own debts, obligations and liabilities. •Council selects Board of Directors to govern DPDA. •All corporate powers/responsibilities exercised and assumed by or under the direction of the Board of Directors. Pa g e 7 o f 6 6 SAO Audit Overview •As an entity receiving public funds, DPDA is subject to accountability audits. •Office of the Washington State Auditor audits agencies receiving governmental funds. •Audits review activity to evaluate the Authority’s: •Use of public resources •Compliance with state law and regulation •Adherence to Authority policies and procedures •Establishment and compliance with internal controls Pa g e 8 o f 6 6 SAO Audit Overview •Current audit examined the activity of years of 2020, 2021 and 2022. •DPDA has been audited biennially since the Authority’s creation starting with activity of 2011. •Starting with the audit for the year 2013 and forward, audit results have disclosed findings. Pa g e 9 o f 6 6 Audit Areas Reviewed •Accounts payable •Cash receipting •Compliance with grant terms •Open Public Meetings Act (OPMA)compliance •Timeliness of report filing and completeness •Financial Condition Pa g e 1 0 o f 6 6 SAO Audit Results Area Amount Summary of Concerns Accounts Payable $584,967 Not adequately supported to validate legitimacy of business purpose. Lacked documentation. Cash Receipting $20,794 Receipt of funds not deposited at bank. Failure to comply with state law funds must deposited within 24 hours of receipt. Grant Funding $630,000 Failure to validate grant compliance and eligibility of grant recipients. Financial Condition Cash balance sufficiency was 12.29 days. Failure to meet OPMA requirements. Pa g e 1 1 o f 6 6 Current Status •Initial payment of $120,000 made. Remainder $120,000 unpaid in 2023. Tasks were uncompleted. •As part of a new funding agreement, financial oversight by City staff was added. •Kick off meeting between DPDA staff and City Finance held on December 16, 2022. •Recurring Friday meetings began January 2023. Pa g e 1 2 o f 6 6 Current Status •City assumed operational and financial control of Farmers’ Market and Pasco Specialty Kitchen June 1, 2023. •City is organizing events like Fiery Foods Festival and Cinco De Mayo. •All claims for Farmers’ Market and Pasco Specialty Kitchen that were adequately supported were paid. Pa g e 1 3 o f 6 6 Pending Items •Claims that are adequately supported but not paid for the rest of the DPDA operations: •Software subscriptions - $2,000 •Tax Preparation and Filing $3,350 •Property Insurance - $11,350 •State of Washington Audit cost - $30,000 - $40,000 •Items expected unprepared by Authority include 2023 W-2 and 1099 forms. Pa g e 1 4 o f 6 6 Path Forward Recommendation: •Dissolution of the agency. Pa g e 1 5 o f 6 6 Page 16 of 66 Page 17 of 66 Page 18 of 66 Page 19 of 66 Pa g e 2 0 o f 6 6 Page 21 of 66 Page 22 of 66 Page 23 of 66 Page 24 of 66 Page 25 of 66 Page 26 of 66 Page 27 of 66 Page 28 of 66 Ordinance Dissolving the Downtown Pasco Development Authority - 1 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, DISSOLVING THE DOWNTOWN PASCO DEVELOPMENT AUTHORITY. WHEREAS, the City of Pasco, Washington, pursuant to RCW 35.21.730 through RCW 31.21.755, created the Downtown Pasco Development Authority (“DPDA”) by City Ordinance No. 3985 adopted on December 20, 2010; and WHEREAS, said Ordinance provided that “[i]f the City Council by majority votes makes an affirmative finding that dissolution is warranted for any reason, the existence of the Downtown Pasco Development Authority may be terminated by Ordinance of the City Council adopted at or after a public hearing, held with notice to the Directors of the DPDA and affording them a reasonable opportunity to be heard and present testimony.”; and WHEREAS, the City Council has determined that the stated goal of the creation of the Downtown Pasco Development Authority of revitalizing the downtown area of Pasco through a public development authority authorized under RCW 35.21.730-.759 has concluded; and WHEREAS, the City has determined that there is minimal benefit to continue the Downtown Pasco Development Authority and dissolution is warranted. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Dissolution of the Downtown Pasco Development Authority. The Downtown Pasco Development Authority created by Ordinance No. 3985 shall be and hereby is dissolved. The City of Pasco Ordinance No. 3985, together with the Charter of the DPDA, as of the effective date provided below, is repealed in its entirety. This repeal shall not revive any prior Ordinance dealing with this same subject. Section 2. Notice to the Downtown Pasco Development Authority. The City Clerk shall forthwith serve upon the remaining board and/or directors (if any) of the Downtown Pasco Development Authority, a copy of this Ordinance as notice dissolving the DPDA effective March X, 2024, at 9:00 a.m., Pacific Standard Time. Section 3. Authorization of the City Manager. The City Manager is hereby authorized and directed to prepare, execute, and have executed, all documents nec essary to facilitate the filing of Articles of Dissolution with the State of Washington in accordance with the requirements of RCW 24.03A.910, including but not limited to, obtaining a Tax Clearance Certificate for the DPDA as required under RCW 82.32.260. The City Manager, or his designee, shall have full authority to exercise all powers necessary to continue the operation of those facilities of the DPDA which shall devolve back to the possession and control of the City as a result of this dissolution and in accordance with Ordinance 3985 and the Charter. Page 29 of 66 Ordinance Dissolving the Downtown Pasco Development Authority - 2 Section 4. Severability. If any section, subsection, sentence, clause, phrase or word of this Ordinance should be held to the invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, subsection, sentence, clause phrase or word of this Ordinance. Section 5. Corrections. Upon approval by the city attorney, the city clerk or the code reviser are authorized to make necessary corrections to this Ordinance, including scrivener’s errors or clerical mistakes; reference to other local, state, or federal laws, rules, or regulations; or numbering or referencing of ordinances or their sections and subsections. Section 6. Effective Date. This Ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, on this ___ day of _____, 2024. _____________________________ Pete Serrano Mayor ATTEST: APPROVED AS TO FORM: _____________________________ ___________________________ Debra Barham, CMC Kerr Ferguson Law, PLLC City Clerk City Attorneys Published: ________________________________ Page 30 of 66 AGENDA REPORT FOR: City Council February 7, 2024 TO: Adam Lincoln, City Manager City Council Workshop Meeting: 2/12/24 FROM: Richa Sigdel, Deputy City Manager City Manager SUBJECT: Resolution - Interlocal Agreement - Cable Bridge LED Lighting System I. REFERENCE(S): Presentation Resolution Interlocal Cooperative Agreement (ILA) II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: The proposed Agreement suggests a $25,000 contribution from each party involved (City of Pasco, City of Kennewick, Port of Pasco, and Port of Kennewick). These funds will be utilized to secure resources necessary for obtaining a comprehensive and accurate cost estimate, serving as the foundation for broader fundraising efforts. IV. HISTORY AND FACTS BRIEF: key a is Bridge, Hendler Ed Cable as known officially Bridge, The the infrastructural element in the Tri-Cities region, linking the Cities of Pasco and Kennewick. Constructed over a period from 1974 to 1978, the Ed Hendler Bridge was developed as a strategic response to the challenges of increasing traffic and the demands of urban expansion in our region. Its design is noteworthy for its pioneering use of suspended cables stretched between two main towers. This architectural choice not only marked the bridge as an immediately recognizable feature in our landscape but also represented a significant advancement in bridge engineering at the time. Page 31 of 66 Upon its completion, the Cable Bridge quickly became a symbol of modernization and growth for the Tri-Cities area. It has played a vital role in facilitating smoother and more efficient transportation across the Columbia River, thereby positively impacting the economic and social development of our communities. V. DISCUSSION: The Cable Bridge, connecting Pasco and Kennewick, has not only been a critical infrastructural element but also a symbol of the Tri-Cities region's growth and development. Notably, during the "Year of the River" in 1998, the bridge gained additional symbolic significance, reflecting the region's connection to and reverence for the Columbia River. To further enhance this iconic structure, a new initiative is underway to illuminate the Cable Bridge using modern LED lighting. This enhancement is intended to transform the bridge into a more striking visual landmark, thereby complementing its longstanding symbolic role in the region. This new lighting system is envisioned to provide dynamic, programmable lighting effects, which can be managed remotely through computer programming. a up setting at aimed collaborative a involves project The agreement framework for funding. The funds collected will be allocated towards hiring consultants who will conduct a thorough review of the bridge. Their role will include developing a planning-level cost estimate for replacing the current lighting system with a cutting-edge LED system. Once cost estimates are prepared, a joint community effort to raise funds will be undertaken to bring this idea to fruition. This various parties, among effort significant a represents initiative joint underlining the commitment to not only maintain but also enhance the aesthetic and cultural value of the Cable Bridge. Ultimately, this project aims to benefit the role beacon a as bridge's of reinforcing region, Tri-Cities entire the community pride and regional identity. Page 32 of 66 Cable Bridge Illumination Inter Local Agreement Pa g e 3 3 o f 6 6 Current State The current white spotlights were installed over 20 years ago. The old technology limits the lighting capabilities. To change the color of the lights, a plastic-colored plate must be installed over each light making it labor intensive and expensive. Pa g e 3 4 o f 6 6 Desired State Turn this landmark bridge into an artistic feature of the community. Update antiquated lighting with energy efficient LED technology. Highlight Osprey Point, Clover Island & other nearby Port of Pasco and Port of Kennewick projects. Raise awareness of the Columbia River system. Pa g e 3 5 o f 6 6 Project Cost Design Cost – Not to exceed $125K Construction Estimated at over $2 million Community led fundraising effort Pa g e 3 6 o f 6 6 Pros Cons Reduce energy consumption Expensive >$2 million Lower labor cost to change/manage bridge lights DOT approval needed Increase placemaking Many partners involved Artistic landmark Additional workload for all parties involved during project design and construction Support of various causes/festivals/holidays Pa g e 3 7 o f 6 6 Partners and Investment 1.City of Pasco - $25,000 2.City of Kennewick - $25,000 3.Port of Pasco - $25,000 4.Port of Kennewick - $25,000 Pa g e 3 8 o f 6 6 Policy Decision Approval of $25,000 in funding for design efforts. Pa g e 3 9 o f 6 6 Questions?Pa g e 4 0 o f 6 6 Resolution – ILA Lighting System on Cable Bridge - 1 RESOLUTION NO. ____ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, AUTHORIZING THE CITY MANAGER TO SIGN AND EXECUTE AN INTERLOCAL COOPERATIVE AGREEMENT BETWEEN THE CITY OF PASCO, WASHINGON, A WASHINGTON MUNICIPAL CORPORATION, CITY OF KENNEWICK, WASHINGTON, A WASHINGTON MUNICIPAL CORPORATION, THE PORT OF PASCO, A MUNICIPAL CORPORATION, AND THE PORT OF KENNEWICK, A MUNICIPAL CORPORATION, FOR THE PURPOSE OF FACILITATING THE MODERNIZATION AND ENHANCEMENT OF THE LIGHTING SYSTEM ON THE PASCO- KENNEWICK INTERCITY CABLE BRIDGE. WHEREAS, RCW 39.34, INTERLOCAL COOPERATION ACT, authorizes political subdivisions to jointly exercise their powers, privileges, or authorities with other political subdivisions of this State through the execution of an interlocal cooperative or interagency agreement; and WHEREAS, the Pasco-Kennewick Intercity Cable Bridge (Bridge), due to its distinctive design, has long served as a symbol of this region, particularly during the "Year of the River" in 1998; and WHEREAS, the Bridge's illumination is seen as a unique opportunity to enhance the aesthetic beauty of the river setting and the installation of modern LED lighting will transform the Bridge into a visual attraction, creating a striking image that complements the symbolic role it holds for the Tri-Cities region; and WHEREAS, this project represents a collaborative effort among the parties to revitalize the Bridge's lighting system for the mutual benefit of the Tri-Cities region; 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 the Interlocal Cooperative Agreement with the previously identified parties to provide initial funding to secure the resources required for obtaining a comprehensive and accurate cost estimate, which will serve as the foundation for initiating and facilitating the broader fundraising efforts. 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 the Interlocal Cooperative Agreement between the City of Pasco, the City of Kennewick, the Port of Pasco, and the Port of Kennewick; a copy of which is attached hereto and incorporated herein by reference as Exhibit A. Page 41 of 66 Resolution – ILA Lighting System on Cable Bridge - 2 Be It Further Resolved, that the City Manager of the City of Pasco, Washington, is hereby authorized, empowered, and directed to sign and execute the Interlocal Cooperative Agreement; and to make minor substantive changes as necessary to execute the Agreement. Be It Further Resolved, that this Resolution shall 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 42 of 66 INTERLOCAL COOPERATIVE AGREEMENT FOR CABLE BRIDGE ILLUMINATION UPDATE BY THIS LOCAL COOPERATIVE AGREEMENT entered into this ______ day of ________________, 20___, between the City of Pasco, Washington, a Washington Municipal Corporation (“Pasco”), the City of Kennewick, Washington, a Washington Municipal Corporation (“Kennewick”), the Port of Pasco , a Municipal Corporation (“Port of Pasco”), and Port of Kennewick, a Municipal Corporation (“Port of Kennewick”) and collectively referred to as ”Parties”, do hereby enter into the following Agreement. Pursuant to Chapter 39.34 RCW, and in consideration of the mutual benefits and covenants described herein, the Parties agree as set forth below. Section I – Project Description I.I Purpose The purpose of this Agreement is to facilitate the modernization and enhancement of the lighting system for the Pasco - Kennewick Intercity Cable Bridge ("Bridge") to promote tourism and economic development (“Project”). The existing lighting system of the Bridge shall be replaced with state-of-the-art LED lighting fixtures. These fixtures will allow for dynamic and programmable lighting effects, controlled remotely from an offsite computer program. I.II Background 1. The Bridge, due to its distinctive design, has long served as a symbol of this region, particularly during the "Year of the River" in 1998. 2. The Bridge's illumination is seen as a unique opportunity to enhance the aesthetic beauty of the river setting. The installation of modern LED lighting will transform the Bridge into a visual attraction, creating a striking image that complements the symbolic role it holds for the Tri-Cities region. 3. This project represents a collaborative effort among the parties to revitalize the Bridge's lighting system for the mutual benefit of the Tri-Cities region. 4. The Parties are acting pursuant to their authorities to promote tourism and economic development within their respective boundaries. I.III Project Scope The scope of this Agreement shall encompass the following: 1. Design and Specifications: The design and specifications for the Project shall be provided by ENGINEERING FIRM, hereinafter referred to as the "Design Consultant", and shall be responsible for the following scope of work: Page 43 of 66 ○ Review of Washington State Department of Transportation (WSDOT) As- Builts: The Design Consultant shall conduct a comprehensive review of the WSDOT as-built documents to assess the current state of the lighting system on the Pasco - Kennewick Intercity Cable Stay Bridge. ○ Preliminary Equipment List and Work Items: Based on the findings from the as-built review, the Design Consultant shall formulate a preliminary equipment list, detailing the necessary components and a list of work items required to facilitate the installation of the new LED lighting system Project. ○ Cost Estimate: The Design Consultant shall provide a detailed cost estimate for the entire Project. This estimate shall encompass all expenses associated with the procurement and installation of the Project, as well as any additional costs related to the Project's execution. ○ Promotional Visual Representation: The Design Consultant shall create a promotional visual representation illustrating the potential aesthetic transformation of the Bridge with the implementation of the new LED lighting system. This visual representation shall serve as a promotional tool to garner support for the project and demonstrate its potential impact on the region's landscape. The design and specifications developed by the Design Consultant, encompassing the above elements, will be shared with all Parties to this Agreement for their timely review and approval. I.IV Fundraising Efforts The scope of fundraising efforts shall include, but shall not be limited to, the following objectives: ꞏ Community Involvement: Encourage the active participation of local businesses, citizens, and community organizations in supporting the project through financial contributions, sponsorships, and volunteer efforts. ꞏ Fundraising Campaign: Plan, coordinate, and execute a comprehensive fundraising campaign that engages the community, conveys the significance of the project, and provides clear avenues for financial support. ꞏ Funds Allocation: Allocate the funds raised from the community towards the overall project cost, with the goal of funding the entire project through a combination of public and private contributions. ꞏ Transparency: Maintain transparency in all fundraising activities, accounting for all funds collected and expended, and providing regular updates to the community and the involved parties. The Parties understand the value of the Bridge as an iconic symbol of the community and its potential to unite local residents, businesses, and stakeholders and to promote tourism and economic development in their respective jurisdictions. To leverage this iconic status, the Parties commit to dedicating reasonable efforts and resources towards achieving the Project's financial goals through fundraising efforts. Page 44 of 66 The Parties shall collaborate with local organizations, civic groups, and institutions to facilitate community engagement and fundraising activities. They shall work collectively to identify and reach out to potential donors and supporters within the community. This commitment to fundraising efforts and community engagement aligns with the vision of using local support to contribute to the funding of the entire Project cost. The Parties will actively seek to leverage the iconic significance of the Bridge to foster local pride and garner financial support from the community. I.V Funding The Parties acknowledge the importance of securing funding for this Project, and they are committed to its success. In furtherance of this commitment, each Party agrees to provide an initial funding contribution. The details of each Party's contribution shall be as follows: ● Pasco: $25,000 ● Kennewick: $25,000 ● Port of Pasco: $25,000 ● Port of Kennewick: $25,000 The purpose of this initial funding is to secure the resources required for obtaining a comprehensive and accurate cost estimate, which will serve as the foundation for initiating and facilitating the broader fundraising efforts. It is intended to not only support the development of an accurate Project budget but also to establish the fundraising campaign within the local community. The Parties shall closely coordinate their efforts to maximize the effectiveness of these fundraising activities. Port of Pasco and Port of Kennewick will have no further funding obligations under this Agreement. In the event Project costs are higher than projected, the cities of Pasco and Kennewick will assume excess Project costs not to exceed 10% over the initial funding of $100,000. Project costs in excess of the 10% contingency require written approval by the Cities in the form of an addendum to this Interlocal Agreement. The Port’s payment will be made within thirty days of receipt of invoice from City of Pasco. If the Project is abandoned, then this Agreement shall be of no further force or effect. SECTION II: PROJECT IMPLEMENTATION II.I Administrative /Lead Agency For the purpose of RCW 39.34, Pasco shall serve as the administrative/ lead agency responsible for overseeing the implementation of this Project and for securing all necessary permits and certifications required for its successful completion. II.II Procurement and Project Execution Page 45 of 66 1. Pasco shall be responsible for procuring all services and materials required to execute this Project in strict accordance with the design and specifications outlined in Section I and in accordance with RCW requirements governing Professional Services and Public Works. 2. Pasco shall collect Project funds contributed by the Parties for this first phase of the Project and disburse such funds as described in this Agreement. 3. Once the design, equipment list, cost estimates, promotional visual representation and fundraising is complete, the Project shall be carried out using modern LED lighting technology as detailed in the design and specifications provided by ENGINEERING FIRM and approved by the Parties. II.III Project Timeline The target date for the completion of the Project under this Agreement shall be TARGET DATE However, under no circumstances shall the Project extend beyond the deadline of DEADLINE DATE without the mutual consent of the Parties. SECTION III: TERM OF AGREEMENT The term of this Agreement shall commence on the date of its execution by all Parties i. The termination date for the installation of the illumination system shall be SPECIFY DATE, or upon the satisfactory completion and acceptance of the Project work outlined within this Agreement, unless otherwise modified, terminated, or extended by mutual agreement of the Parties. Any Party may terminate their participation in this Agreement by giving thirty (30) days written notice to all Parties at the addresses set forth below. A Parties’ termination shall not relieve it of its funding obligation set forth in Section I.V Funding herein above. SECTION IV: OWNERSHIP OF IMPROVEMENTS All enhancements resulting from this Project shall constitute permanent fixtures on the Bridge, which is property owned by the State of Washington Department of Transportation. SECTION V: MODIFICATIONS AND AMENDMENTS This Agreement may only be modified, altered, or amended through written agreement executed by the then-current Parties to this Agreement except as set forth in Section III. SECTION VI: MAINTENANCE Upon the Project's completion and acceptance by the Parties, the ongoing operational and maintenance expenses shall initially be covered by eligible funding, as may be made available by the State of Washington. Any remaining costs shall be divided equally between Pasco and Kennewick. SECTION VII: INTERLOCAL COOPERATION ACT PROVISIONS Page 46 of 66 No special budget or continuous funds are expected or required for the construction, maintenance, and operation of this Project. There is no intention to establish a separate legal entity for the cooperative Project, nor to require the holding or disposition of real or personal property. The Pasco Public Works Director shall be designated as the Administrator of the Project. This Agreement is made and entered into for the sole protection and benefit of the Parties hereto and their successors and assigns. No other person shall have any right or cause of action based upon any provisions of this Agreement. This Agreement has been reviewed and revised by legal counsels for each Party, and no presumption or rule construing ambiguity against the drafter of the document shall apply to the interpretation or enforcement of this Agreement. No employees or agents of any Party shall be deemed, or represent themselves to be, employees of any of the other Party. A copy of this Agreement shall be recorded with the Auditor of each County within which any Party is located or shall be posted to each Parties’ web site as provided by law, Except as provided herein, each Party shall finance its own conduct of responsibilities under this Agreement. No ownership of property will transfer as a result of this Agreement. SECTION VII: SEVERABILITY If any term or condition of this Agreement, or its application to any person or circumstance, is found to be invalid, such invalidity shall not affect the validity of the other terms, conditions, or applications of this Agreement that can be given effect without the invalid provision. Consequently, the terms and conditions of this Agreement are considered severable. SECTION IX: INDEMNIFICATION Each Party shall undertake the defense, indemnification, and hold harmless of the others from any claims, damages, causes of action, or judgments arising due to the negligent or intentional actions of their agents, employees, or officers. Each Party specifically assumes liability for actions brought by its own employees against the other Party and for that purpose each Party specifically waives, as respects the other parties only, any immunity under the Worker’s Compensation Act, RCW Title 51. The Parties recognize that this waiver was the subject of mutual negotiation. In the event any Party incurs attorney’s fees, costs or other legal expenses to enforce the provisions of this Agreement against the other Party, all such fees, costs and expenses shall be recoverable by the prevailing Party. Page 47 of 66 No liability shall attach to any of the Parties by reason of entering into this Agreement except as expressly provided herein. The provisions of this Section IX shall survive any termination or expiration of this Agreement. SECTION X: ENTIRE AGREEMENT This Agreement comprises the entirety of the terms and conditions agreed upon by the Parties. All documents referred to by incorporation are attached as exhibits. No other understandings, whether oral or otherwise, relating to the subject matter of this Agreement, shall be deemed to exist or bind any of the Parties. This Agreement shall be construed and enforced in accordance with the laws of the State of Washington, and its validity and performance shall be governed by these laws. In the event of any legal action arising from this Agreement, the venue shall be the Superior Court in the County of Franklin, State of Washington. SECTION XI: NOTICE ADDRESSES All notices given pursuant to this Agreement shall be deemed delivered to the respective Party on the date that it is personally delivered to the address(es) set forth below, or on the date that it is successfully sent by email transmission to the email addresses set forth below: ENTITY: Attention: Email: Address XII. RECORDS AND AUDIT. During the term of this Agreement, and for a period not less than six (6) years from the date of termination, records and accounts pertaining to the work of this Agreement and accounting therefore shall be kept by each Party and shall be available for inspection and audit by representatives of either Party and any other entity with legal entitlement to review said records. If any litigation, claim, or audit is commenced, the records and accounts along with supporting documentation shall be retained until all litigation, claims, or audit finding has been resolved, even though such litigation, claim, or audit continues past the six-year (6) retention period. This provision is in addition to and is not intended to supplant, alter or amend records retention requirements established by applicable state and federal laws. [SIGNATURES APPEAR ON NEXT PAGE] Page 48 of 66 CITY OF KENNEWICK: PORT OF KENNEWICK: ___________, City Manager Tim Arzen, CEO Date:______________ Date:______________ Approved as to form: _______________ ___________________ City Attorney Port Legal Counsel CITY OF PASCO: PORT OF PASCO ___________, City Manager _____________CEO Date:______________ Date:______________ Approved as to form: City Attorney Port Legal Counsel Page 49 of 66 AGENDA REPORT FOR: City Council February 7, 2024 TO: Adam R. Lincoln, City Manager City Council Workshop Meeting: 2/12/24 FROM: Maria Serra, Interim Director Public Works SUBJECT: Resolution - Project Acceptance for West Pasco Water Treatment Plant, Phase 1 Project I. REFERENCE(S): Resolution PowerPoint Presentation II. ACTION REQUESTED OF COUNCIL / STAFF RECOMMENDATIONS: Discussion III. FISCAL IMPACT: Bid Award $8,411,830.20 Change Orders $709,950.70 Final Construction Cost $9,121,780.90 Funding for the project is provided as follows: Adopted 2021-2022 Project budget: $9,835,000.00. Adopted 2023-2024 Project Budget: $1,184,677.00 This project was partially funded by:  $5,353,000.00 at 1% Department of Health State Revolving Fund. Original interest rate of 1.75% was reduced to 1% due to timely completion;  ARPA Funds in the amount of $4,835,000; and  Water Utility Fund IV. HISTORY AND FACTS BRIEF: Design, permitting, and final cost estimates for this project were completed in late 2021. Phase 1 project consists of the first set of improvements to expand the production capacity of the West Pasco Water Treatment Plant (WPWTP) from 6 million gallons per day (MGD) to 12 MGD, through the installation of Page 50 of 66 membrane treatment units and ancillary equipment, installation of a new process residuals system involving a clarifier and new residuals pump station building, SCADA system upgrades, and other plant improvements. The improvements at this facility provide cost-effective resiliency for the City’s water system as the main water treatment facility (Butterfield WTP) is aging and will be undergoing planned extensive improvements in the coming years. Increasing treatment capacity at the WPWTP provides for additional supply to meet our current and future potable water demands, as well as provide much- needed supply redundancy for existing water customers. With the planned improvements to the Butterfield WTP on the horizon, completing the Phase I improvements will provide resiliency in the water system. On February 22, 2022, Council awarded the WPWTP Improvements Phase 1 contract to Apollo, Inc. of Pasco, WA in the amount of $8,411,830.20. Since Construction began, the project required 18 Change Orders for a total of $709,950.70. The Change Orders addressed design changes, asphalt timing with safety and updates, equipment security various 2, Phase existing changes, a new raw water vault, and sales tax increases from 8.6% to 8.7% and to 8.9%. Formal acceptance of public works projects is required by State law and starts the 45-day period within which an outside vendor, supplier or laborer would have an opportunity to file a claim against this project pursuant to RCW 60.28.011 (2). Upon completion of the 45-day lien filing period, retainage being held by the City may be released upon receipt of the following:  An affidavit of no liens  A release from the Department of Revenue that all taxes have been paid  A release from any claims from the Department of Labor and Industries, pursuant to RCW 60.28.051 V. DISCUSSION: City Staff recommends approval of the resolution for the acceptance of the West Pasco Water Treatment Plant, Phase 1 Project, as constructed by Apollo, Inc. Page 51 of 66 Resolution - WPWTP Ph1 Project Acceptance- 1 RESOLUTION NO. ________ A RESOLUTION OF THE CITY OF PASCO, WASHINGTON, ACCEPTING WORK PERFORMED BY APOLLO, INC., UNDER CONTRACT FOR THE WEST PASCO WATER TREATMENT PLANT PHASE 1 PROJECT. WHEREAS, the work performed by Apollo, Inc., under contract for Project No. 16008 West Pasco Water Treatment Plant Phase 1 has been examined by City of Pasco (City) staff and been found to be in apparent compliance with the applicable project specifications and drawings; and WHEREAS, it is the City staff’s recommendation that the City of Pasco formally accept the contractor's work and the project as complete. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON: That the City Council concurs with City staff’s recommendation and thereby accepts the work performed by Apollo, Inc., under contract for Project No. 16008 West Pasco Water Treatment Plant Phase 1 as being completed in apparent compliance with the project specifications and drawings. Be It Further Resolved, that the City Clerk is hereby directed to notify the Washington State Department of Revenue of this acceptance, and Be It Further Resolved, that the final payment of retainage being withheld, pursuant to RCW 60.28.011, regulations and administrative process, shall be released upon apparent compliance with and satisfaction of applicable project specifications and verification thereof by Interim Public Works Director and Finance Director. 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 52 of 66 Pasco City Council Regular Meeting February 12, 2024 Pa g e 5 3 o f 6 6 West Pasco Water Treatment Plant, Phase 1 Project #16-008 Pa g e 5 4 o f 6 6 West Pasco Water Treatment Plant, Phase 1 Project #16-008 Pa g e 5 5 o f 6 6 West Pasco Water Treatment Plant, Phase 1 Before Pa g e 5 6 o f 6 6 West Pasco Water Treatment Plant, Phase 1 Before Pa g e 5 7 o f 6 6 West Pasco Water Treatment Plant, Phase 1 In Progress Pa g e 5 8 o f 6 6 West Pasco Water Treatment Plant, Phase 1 In Progress Pa g e 5 9 o f 6 6 West Pasco Water Treatment Plant, Phase 1 After Pa g e 6 0 o f 6 6 West Pasco Water Treatment Plant, Phase 1 After Pa g e 6 1 o f 6 6 West Pasco Water Treatment Plant, Phase 1 Project Costs Final Construction Cost: $9,121,780.90 Bid Award: $8,411,830.20 Change Order No. Description Amount Change Order No. Description Amount 1 Access Roadway Work $9,411.59 10 Remove& Install new Hypochlorite Tank $91,574.14 2 Pump St. CMU Changes $3,614.23 11 Raw Water Vault replacement $405,827.56 3 Clarifier Change, Door Hardware -$14,192.47 12 Misc. updates for Plant safety and redundancy $56,748.36 4 Electrical Modifications, Piping Changes, Concrete Testing $40,558.09 13 Misc. Safety Upgrades and Asphalt Removal $50,912.27 5 Replace Valves and Electrical $68,374.20 14 Addition of Backflow valves and RPBA $10,372.27 6 Vault Ladder Additions $4,171.72 15 Addition of Supernatant Recycle Supply Pump $13,272.94 7 Davit Crane for Pumps $1,177.66 16 Misc. Upgrades for Plant Safety $13,429.55 8 Membrane recirculation for current filters $16,764.32 17 Misc. Upgrades for Plant Safety $17,294.07 9 Modify air scour pipe & HVAC $32,568.03 18 Reconciliation to match certified Pay apps -$9,806.29 Pa g e 6 2 o f 6 6 West Pasco Water Treatment Plant, Phase 1 Project Costs PROJECT FUNDING Drinking Water SRF loan $5,350,000.00 20-year, 1.0% Interest ARPA $4,835,000.00 Grant Water rates (Fund 411) $401,740.00 Secure Revenue Bond $701,954.00 TOTAL $11,288,694.00 PROJECT COSTS Design and permitting $1,309,722.83 Construction contract $9,121,780.90 Construction administration $839,084.05 TOTAL PROJECT COST $11,270,587.78Pa g e 6 3 o f 6 6 Questions?Pa g e 6 4 o f 6 6 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 65 of 66 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 66 of 66